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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. 151-195 

AS APPROVED 

BT 

PRESIDENT ROOSEVELT 

DECEMBER 8-DECEMBER 31, 1933 

WITH SUPPLEMENTAL CODES, AMENDMENTS, AND 

EXECUTIVE ORDERS ISSUED BETWEEN 

THESE DATES 



VOLUME IV 




WE DO OUR PART 



UNI'x'ED "StATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 






MAY 26 1936 



Chafgpd to credit acct. 
with Supt. ot Oocumenb 



CONTENTS 



Code 

No. 



151 
152 
153 

154 I 

155 I 

156 I 
157 
158 
159 

160 ! 

161 i 

162 I 
163 
164 
165 1 
166 
167 
168 
169 
170 ' 
171 
172 
173 



174 
175 
176 

177 
178 
179 
180 
181 
182 
183 
184 

185 
186 
187 
188 
189 
190 
191 
192 
193 
194 
195 



Industry 



CODES OF FAIR COMPETITION 

Millinery 

Can Manufacturers 

Valve and Fittings Manufacturing 

Metal Tank 

Oxy-Acetylene 

Rubber Manufacturing 

Hair Cloth Manufacturing 

Stone Finishing Machinery and Equipment 

Dry and Polishing Mop Manufacturing 

Fur Trapping Contractors 

Fur Dressing and Fur Dyeing 

Domestic Freight Forwarding 

Wholesale Automotive Trade 

Knitted Outerwear 

Non-Ferrous Foundry 

Waxed Paper 

Set Up Paper Box Manufacturing 

Refractories 

Savings, Building and Loan Associations 

Grinding Wheel 

Rolling Steel Door 

Rayon and Silk Dyeing and Printing 

Industry Engaged in the Smelting and Refining of 
Secondary Metals Into Brass and Bronze Alloys in 

Ingot Form 

Rubber Tire Manufacturing 

Medium and Low Priced Jewelry Manufacturing 

Paper Distributing Trade 

Silverware Manufacturing 

Watch Case Manufacturing 

Electrotyping and Stereotyping 

Photo-Engraving 

Commercial Refrigerator 

Retail Food and Grocery Trade 

Household Ice Refrigerator 

Shoe and Leather Finish, Polish, and Cement Manu- 
facturing,. 

Concrete Pipe Manufacturing 

End Grain Strip Wood Block 

Cotton Cloth Glove Manufacturing 

Velvet 

Coated Abrasives 

Paper Stationery and Tablet Manufacturing 

Cinders, Ashes, and Scavenger Trade 

Cast Iron Pressure Pipe 

Folding Paper Box 

Blouse and Skirt Manufacturing 

American Match 



Date ap- 
proved, 
1933 



Dec. 15 
Dec. 15 
Dec. 15 
Dec. 15 
Dec. 15 
Dec. 15 
Dec. 15 
Dec. 15 
Dec. 15 
Dec. 15 
Dec. 18 
Dec. 18 
Dec. 18 
Dec. 18 
Dec. 18 
Dec. 18 
Dec. 18 
Dec. 18 
Dec. 21 
Dec. 21 
Dec. 21 
Dec. 21 



Dec. 21 
Dec. 21 
Dec. 23 
Dec. 23 
Dec. 23 
Dec. 23 
Dec. 23 
Dec. 23 
Dec. 23 
Dec. 30 
Dec. 30 

Dec. 30 

Dec. 30 

Dec. 30 

Dec. 30 

Dec. 30 

Dec. 30 

Dec. 30 

Dec. 30 

Dec. 30 

Dec. 30 

Dec. 30 

Dec. 30 



(ni) 



IV 



AMENDMENTS 

Lumber and Timber Products, Nos. 3 and 4 

Men's Clothing, No. 1 

Automobile Manufacturing, No. 1 

Cast Iron Soil Pipe, No. 1 

Men's Clothing, No. 2 

Cotton Garment, No. 1 

Farm Equipment, No. 1 

Gasoline Pump Manufacturing, No. 1 

Lace Manufacturing, No. 1 

Textile Bag, No. 1 

Cotton Textile, No. 2 

Wall Paper Manufacturing, No. 1 

EXECUTIVE ORDERS 

Disapproval of exception and termination of stay under the code 
of fair competition for the Cotton Textile Industry 

Further extension of time for certain manufacturers to elect not 
to be bound under the code of fair competition for the Up- 
holstery and Drapery Textile Industry 

Providing for notice of proceedings and matters in the adminis- 
tration of the National Industrial Recovery Act 

Delegating further functions and powers to the administrator 
for Industrial Recovery 

ADMINISTRATIVE ORDERS 

Stay of code provisions as to productive machinery operation 

for the Cotton Textile Industry 

Stay of minimum wage provisions as to outside salesmen and 

drug-store delivery employees for the Retail Trade 

Limitation of machine hours for the Cotton Textile Industry 

Stay of wage-hour provisions for the Hotel Industry 

Temporary hours modification for the Leather and Woolen 

Knit Glove Industry 

Stay of effective date of Article VIII for Bankers 

Definition of areas, hours, and wages for the Dress Manufactur- 
ing Industry 

Stay for the Dress Manufacturing Industry and Cotton Gar- 
ment Industry 

Temporary changes of Article IV for the Hosiery Industry 

Emergency requirement as to further limitation of hours of 
machine operation in Carded Yarn Group of the Cotton 

Textile Industry 

Emergency requirement as to further limitation of hours of 
printing machine operation in the Finishing Branch of the 

Cotton Textile Industry 

Curtailment of machine hours for the Silk Textile Industry 

Administrative approval of Industrial Sand Division of the 

Crushed Stone, Sand and Gravel, and Slag Industries 

Stay for the Hotel Industr}^ 

Allocation of States to the southern division under the Cotton 

Garment Industry 

Stay of wage provisions for the Southern Section under the 
Cotton Cloth Glove Manufacturing Industry 



Index. 



Date, 1933 



Dec. 7 

Dec. 15 

Dec. 18 

Dec. 18 

Dec. 18 

Dec. 18 

Dec. 21 

Dec. 21 

Dec. 23 

Dec. 23 

Dec. 27 

Dec. 30 



Nov. 6 

Dec. 11 
Dec. 21 
Dec. 30 

July 30 

Nov. 8 
Dec. 2 
Dec. 2 

Dec. 6 
Dec. 11 

Dec. 14 

Dec. 14 
Dec. 14 

Dec. 15 

Dec. 18 
Dec. 23 

Dec. 27 
Dec. 29 

Dec. 30 

Dec. 30 



CODES OF FAIR COMPETITION 



Approved Code No. 151 
CODE OF FAIR COMPETITION 

FOR THE 

MILLINERY INDUSTRY 

As Approved on December 15, 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 approved of a Code 
of Fair Competition for the JNIillinery 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 wnth the pertinent provisions of title I 
of said act and that the re(piirements of clauses (1) and (2) of 
subsection (a) of section 3 of tjie 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 hereby adopt and approve the report, reconunendations, and 
findings of the Administrator and do order that the said code of 
fair competition be and it is hereby approved, subject to the folloAV- 
ing conditions : 

1. That the provisions of this code shall be in full force and 
effect only until May 15, 1934. Prior to that date, the code authority 
shall make recommendations to the Administrator in regard to the 
continuance or the amendment of any or all provisions of this code. 

2. A special board shall be appointed by the Administrator for 
the purpose of determining after notice and hearing whether the 
scales applying to a particular area, market, or member of the in- 

25692° 244 — 151 33 (i) 



dustry should be stayed or modified because of great and unusual 
hardship to such area, market, or member of the industry by reason 
of the application of such scales thereto. 

3. Provision is made in section 5 of article IV by which any 
person on whom undue hardships are imposed may be granted an 
opportunity for relief. 

FRANKLIN D. ROOSEVELT. 
Approval recommended : 
Hugh S. Johnson, 

Admi7iistrator. 

The White House, 

December 15, 1933, 



November 17, 1933. 
The President, 

The White House. \ 

Sir : This is a report of the hearing on the Code of Fair Com- 
petition for the Millinery Industry, conducted in Washington on 
August 1 and 2, in accordance with the provisions of the National 
Industrial Recovery Act. 

PROVISIONS or THE CODE FOR HOURS AND WAGES 

Factory eipiployment is limited to thirty-seven and one half hours 
per week, except that the Administrator may permit a certain amount 
of overtime during peak periods, should conditions so require. Time 
and one half will be paid for all overtime work. The Code provides 
also that should conditions at any time warrant such a step, the 
Code Authority or the Administrator may further reduce the maxi- 
mum hours. Factory operations are limited to one shift a day, 
five days a week. 

The Code provides a basic minimum of fourteen dollars for em- 
ployees in establishments located in greater New York, in the ter- 
ritory within a hundred-mile radius of the City of Chicago and in 
the States of New Jersey, Pennsylvania, and Connecticut, and a 
basic minimum of thirteen dollars for all other parts of the country. 
Minimum wages are also specified for blockers, operators, cutters, 
and milliners. Such minimum rates vary between forty-five cents 
per hour and one dollar and ten cents per hour. It should be noted 
in particular that the Code establishes machinery for readjustment 
fjhould the wage rates specified prove inequitable. 

The minimum age of employees is fixed at sixteen years, home- 
work is abolished, and manufacturing operations under unsanitary 
conditions are prohibited. 

Economic Effect or the Code 

The thirty-seven-and-one-half-hour normal week for factory em- 
ployees with the additional pay for overtime should tend to level 
employment peaks in this industry and increase the number of 
workers. Inasmuch as style is such an important element in this 
industry, seasonal peaks have been very pronounced. It is hoped, 
however, that the hour provisions of this Code, along with the con- 
trol of style piracy, will do much to even employment throughout 
the year. In the spring of 1929 (peak season) there were 37,760 
workers engaged in this industry. By the spring of 1932 this num- 
ber had declined to 29,790, and by the spring of 1933 to 27,440. 
These figures indicate an unemployment of 10,320 workers at the 
peak of the season. Other things remaining equal, the thirty-seven- 
and-one-half-hour week will require about 28 percent more workers. 

(3) 



Approximately 75 percent of those now unemployed will be reem- 
ployed as a result of the provisions of this Code. A thirty-five-hour 
week would be required to absorb all unemployment. Because of 
the increased cost involved, however, and the difficulties of further 
readjustment, it was thought better to allow thirty-seven and one 
half hours per week at the present time and in the future to reduce 
the hours still further should conditions so require and so permit. 

There is no information available to allow an estimate of the 
increase in the pay roll attributable to the wage provisions of this 
Code. It is evident, however, that the increase will not be great 
since there are not many unskilled workers and since a good part of 
the skilled workers whose minimum wages are set by this Code, 
customarily, in New York at least, receive higher than the wages 
specified. Such increase in pay rolls as these provisions will bring 
about will effect primarily the manufacturing centers outside of 
New York. A considerably larger increase in pay roll will result 
from reduction of the work week. The reduction of hours alone will 
add about 28 percent to the present pay roll. 

The percentage ratio to the value of product is 22.5. An increase 
in the pay roll of 28 percent would, therefore, raise the factory 
selling price 6.3 percent. Consequently, in this industry at least, 
purchasing power will be increased much more rapidly and to a 
much greater extent than prices. 

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 groups impose no inequitable restrictions on 
admission to membership therein and, collectively, are truly repre- 
sentative of the Millinery Industry ; and that 

(c) The Code as recommended is not designed to promote monop- 
olies or to eliminate or oppress small enterprises, and will not oper- 
ate to discriminate against them, and will tend to effectuate the 
policy of Title I of the National Industrial Recovery Act. 

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

Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

MILLINERY 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 Millinery Industry, and shall be the 
standard of fair competition for this Industry, and shall be binding 
upon every member thereof. 

Article II — Definitions 

1. The term " industry " as used herein includes the manufacture 
of millinery as hereinafter defined, and such related branches or sub- 
divisions as may from time to time be included by the President 
under the provisions of this Code. 

2. The term '• millinery " as used herein shall include all ladies' 
and misses' headwear, whether trimmed or untrimmed, except that 
it shall not include so-called " harvest hats." 

3. The term " employee '' as used herein includes anyone engaged 
in the industry in any capacity receiving compensation for his serv- 
ices, irrespective of the nature or method of payment of such 
compensation. 

4. The term '' employer " as used herein shall include every indi- 
vidual, partnership, association, trust, corporation, or other form 
of enterprise engaged as employer in the manufacture of millinery, 
as hereinabove defined, and shall include all employers who are 
engaged in any other industry or in general retail business to the 
extent that they manufacture millinery as part of their business. 

5. The term '' member of the industry " includes anyone engaged 
in the industry either as an employer or on his own behalf. 

6. The terms '' President ", "Act ", and "Administrator ", as used 
herein, shall mean, respectively, the President of the United States, 
Title I of the National Industrial Recovery Act, and the Adminis- 
trator of said Act. 

Article III — Hours of Labor 

1. Except as hereinafter jDrovided, no employee shall be permitted 
to \Vork in excess of thirty-seven and one half (37i/2) hours in any 
one (1) week nor more than seven and one half (TiA) hours in any 
twenty-four (24) hour period. 

2, Office employees, members of shipping and receiving crews, 
engineers, and firemen shall not be permitted to work in excess oi 
forty-five (45) hours in any one week. 

(5) 



3. Except as hereinafter provided, no overtime shall be permit- 
ted, except that during a period of not more than six (6) weeks in 
any one (1) season, overtime may be permitted in any market upon 
the recommendation of the Code Authority and the approval of the 
Administrator, provided that time and one half the normal rate of 
wages shall be paid for such overtime work as the Administrator 
may permit. 

4. There shall be periodical investigations by the Code Authority 
for the purpose of determining the amount of unemployment exist- 
ing in each craft, and should the Code Authority find it beneficial 
for the best interests of the industry to temporarily reduce the num- 
ber of hours in any specific craft, this Code may be modified to 
reduce the hours from thirty-seven and one half (371/2) to thirty-five 
(35) or less hours per week in that craft with the approval of the 
Administrator after such notice and hearing as he shall prescribe^ 

5. The provisions of this Article shall not apply to persons em- 
ployed in executive or supervisory capacities, or to persons employed 
as designers, provided such persons receive not less than thirty 
dollars ($30.00) per week. 

6. The provisions of this Article shall not apply to outside sales- 
men, or to watchmen, or to employees engaged in emergency mainte- 
nance or emergency repair work, 

7. The provisions of this Article shall apply to any and all persons 
who engage in any of the operations usually performed by the classes 
of employees set forth in Article IV, Section 3, of this Code, or in 
any other operations required in the manufacture of millinery, even 
though such person may be a member of a partnership or association,, 
or an officer, stockholder, or director of the corporation engaged in 
said business; the provisions of this Article shall not apply, however^ 
to an individual owner of an unincorporated business engaged in the 
manufacture of millinery. 

8. Subject to review by the Administrator, the Code Authority 
shall issue apprentice regulations providing for apprentices' wages,, 
length of apprenticeship and the percentage of apprentices in each 
particular craft. 

9. Subject to review by the Administrator, the Code Authority may 
designate the hour before which work shall not begin and the hour 
after which work shall not continue, and shall determine in which 
localities such regulations shall apply. 

10. No member of the industry shall knowingly engage any em- 
ployee for any time which, when totaled with that already per- 
formed with another member, or members, of the industry, exceeds 
the maximum permitted herein. 

11. No employee shall be permitted to work in excess of five (5) 
days in any seven (7) day period. 

Article IV — Wages 

1. For the purpose? of this Code the United States shall be 
divided into four (4) areas, as follows: 

(a) Area "A" shall include Greater New York and the territory 
■within a radius of fifty (50) miles from Columbus Circle, except that 
it shall not include any portion of the State of Connecticut. 



(b) Area " B " shall include the city of Chicago and the territory 
within a radius of one hundred (100) miles of the City Hall of 
Chicago, and shall also include the States of Pennsylvania and 
Connecticut and such portions of the State of New Jersey as are 
not included in Area "A". 

(c) Area "C" shall include the States of Missouri, Kansas, and 
Ohio. 

(d) Area "D" shall include all other portions of Continental 
United States not included in Areas "A", " B ", and " C " as defined 
above. 

2. No employee not provided for by the wage provisions enumer- 
ated in Section 3 of this Article shall be paid at less than the rate of 
fourteen dollars ($14.00) per week of the maximum number of hours 
permitted by this Code for such employee when employed in Areas 
"A" and " B " as defined in this Article, nor less than the rate of 
thirteen dollars ($13.00) per Aveek of the maximum number of hours 
permitted by this Code for such employee when employed in Areas 
" C " and '' t) " as defined in this Article. 

3. On and after the effective date, employees engaged in the crafts 
hereinafter set forth shall be paid the following standard rates per 
hour, and for the purpose of establishing these standard rates for the 
various crafts, seventy-five percent (75%) of the total workers 
engaged in each craft must receive not less than the amount set forth 
in the following schedule ; but in no case shall any such employee be 
paid less than at the minimum wage rate provided in Section 2 of this 
Article : 





Area A 


Area B 


Area C 


Area D 


Blockers - - . . . . - 


$1.19 
1.00 
1.00 
.55 


$0.90 

. 75 
.75 
. 471/2 


$0.80 

.67^2 

.45 


$0.70 


Operators 


.60 


Cutters .._ 


.60 


Milliners . . . 


.45 







4. The Code Authority shall, with the approval of the Adminis- 
trator, issue instructions to the members of the industry regarding 
the classification of emj^loyees. 

5. In the event that Section 3 of this Article imposes an undue 
hardship on any employer, such employer may petition through the 
trade association of which he may be a member, or directly, to the 
Administrator for relief. The Administrator, upon receipt of such 
petition, shall conduct hearings thereon, and in the event that the 
petitioner establish a case of undue hardship, the Administrator may 
make such modifications of this Code as may be necessary. 

G. No employee shall be paid at less than the rates of pay set forth 
in this Article, regardless of whether such employee is compensated, 
on a time-rate, piece-rate, or other basis of compensatioii. 

7. The weekly compensation for employment now in excess of the 
minimum wages herein provided shall not be reduced, notwithstand- 
ing that the hours of work in any such employment may be hereby 
reduced, and piece rates shall be so adjusted that earnings at the 
shorter hours provided in this Code shall be at least equivalent to 



8 

those obtainin<r under the longer hours heretofore prevailing, pro- 
vided that this clause shall not cause an advance of any wage rate 
of more than twentj^-five (25%) percent over the v^-^age rate as of 
July 1, 1933. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed in 
the industry. In any State ah 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 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. 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. 

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees so as to defeat the purposes of the Act 
•or of this Code, nor shall they use any subterfuge to frustrate the 
spirit and intent of this Code. 

7. Each employer shall post in a conspicuous place copies of 
Articles III, IV, and V of this Code. 

8. No member of the industry shall permit work to be done in any 
homes or tenement houses, nor in any basement, unsanitary building, 
building unsafe on account of fire risks, or otherwise dangerous or 
detrimental to health. 

9. Each employer shall file with the Code Authority proof satis- 
factory to said Authority of compliance with all labor laws and 
regulations, health and sanitation laws and regulations, fire laws and 
regulations, and other similar laws and regulations relating to the 
operation of manufacturing establishments; provided, however, that 
the determination by the Code Authority as to whether the proof 
submitted to it is satisfactory as aforesaid shall be subject to review 
by the Administrator. 

Article VI — Administration 

1. A Code Authority is hereby constituted to cooperate with the 
Administrator in the administration of this Code. 

2. The Code Authority shall consist of eighteen (18) members 
or such other number as may be approved from time to time by the 



Administrator, and shall be selected, subject to the approval of the 
Administrator, from such groups and in such numbers as hereinafter 
set forth: 

(a) Two (2) members shall be appointed by the Midwestern 
Millinery Association, Inc. 

(b) One (1) member shall be appointed by the Associated Milli- 
nery Industries of St. Louis (Mo.), Inc. 

(c) One (1) member shall be appointed by the New England 
^Millinery Manufacturers and Jobbers Association. 

(d) Four (4) members shall be appointed by the Women's Head- 
wear Group, Inc. 

(e) Four (4) members shall be appointed jointly by the Eastern 
Millinery Association, Inc., and the National Association of Ladies' 
Hatters, Inc. 

(f) One (1) member shall be appointed by the Pacific Coast 
Millinery Association. 

(g) One (1) member shall be appointed by the Philadelphia 
Millinery Manufacturers Association. 

(h) One (1) member shall be appointed by the Millinery Manu- 
facturers of Atlanta, Georgia. 

(i) One (1) member shall be appointed by the Cleveland Hat 
Manufacturers Group. 

(j) Two (2) members representing organizations of labor shall 
be appointed by the Administrator on the nomination of the Labor 
Advisory Board of the National Recovery Administration. 

(k) One (1) member may, in the discretion of the Administrator, 
be appointed or selected by such other group or interest as the 
Administrator may designate. 

(1) In addition to the foregoing members, the Administrator may 
appoint not more than three (3) members, with or without vote, as 
he shall determine. Such members and the Administrator shall be 
given notice of and may participate in all meetings of the Code 
Authority. 

3. Each of the foregoing associations shall file with the Adminis- 
trator the names of such members as it shall appoint to the Code 
Authority and shall inform the Administrator immediately of any 
new appointment which it may at any time make. 

4. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall: 
(1) Impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 
bylaws, regulations, and any amendments when made thereto, to- 
gether wath such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

5. 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 may require an appropriate modi- 
fication in the method of selection of the Code Authority. 

6. 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 any one for 
any act of any other member, officer, agent, or employee of the Code 



10 

Authority. Nor shall any member of the Code Authority exercising 
reasonable diligence in the conduct of his duties hereunder be liable 
to any one for any action or omission to act under this Code, except 
for his own willful misfeasance or nonfeasance. 

7. The Code Authority shall have the following duties and powers 
to the extent permitted by this Act, subject to the right of the Ad- 
ministrator, on review, to disapprove or modify any action taken 
by the Code Authority. 

(a) To select officers and agents and to assign to them such duties 
as it may consider advisable, to provide rules for its procedure and 
continuance as the administrative agency of this Code, in accordance 
with the provisions of the Act, and to submit to the Administrator 
true copies of its bylaws and regulations and any amendments when 
made thereto, and minutes of meetings, together with such other 
information as to its activities as the Administrator may deem neces- 
sary to effect the purposes of the Act. 

(b) To obtain reports through a confidential agent from members 
of the industry, not more often than semimonthly, with respect 
to wages and hours of labor, conditions of employment, number of 
employees, and other matters pertaining to the administration and 
enforcement of this Code in such form and at such times as the Code 
Authority with the approval of the Administrator may require, and 
to submit such reports or parts thereof to the Administrator as he 
may require in order that the President may be kept informed as to 
the observances of this Code. All reports received by such agency 
shall be kept secret and confidential except that they shall be avail- 
able to the Administrator. Such agency, after analyzing such 
reports, may disclose without individual identification, only general 
findings based thereon to the Code Authority and to any trade asso- 
ciation approved by the Code Authority for distribution to persons 
entitled thereto. 

(c) To recommend provisions for uniform cost and/or accounting 
systems for each Division of the industry which, upon approval by 
the Administrator and after such notice and hearing as he shall 
prescribe shall become a part of this Code. Any member of the 
industry shall have the privilege of continuing any cost and/or 
accounting system now in use or of instituting a new cost and/or 
accounting system suitable and adapted to his particular needs, pro- 
vided that the selling price arrived at by the use of any such system 
shall not be less than the cost of that particular article which would 
be arrived at by the use of the uniform cost system recommended 
by the Code Authority, and approved by the President. 

(d) To prepare and recommend a uniform sales contract or order 
blank for the use of persons to whom this Code is applicable. 

(e) To initiate, consider, and recommend to the Administrator 
proposals for modifications or amendments to this Code. Upon the 
approval of the President, after such hearing as he may prescribe, 
such proposals shall be incorporated into this Code and have the 
same force and effect as if originally made a part hereof. 

(f) To undertake an immediate and complete investigation, in 
cooperation with other Code Authorities in related industries, of 
style piracy and to recommend to the Administrator, as promptly as 
possible, appropriate means for the regulation and control of style 



11 

piracy, which recommendations, upon the approval of the Adminis- 
trator after such notice and hearing as he shall prescribe, shall 
become effective provisions of this Code. 

(g) To coordinate the Administration of this Code with such 
other codes, if any, as may be related to any division or subdivision 
of this industry, with a view to promoting joint and harmonious 
action on matters of common interest, and in particular, but without 
limitation, to make reconnnendations to the Administrator on ques- 
ions of overlapping jurisdictions. 

(h) To employ such trade associations and other agencies as it 
deems proper, to assist it in carrying out any of its activities, pro- 
vided that such trade associations and other agencies comply with 
tlie provisions of this Code, and to pay the expenses incident thereto. 
Nothing herein shall in any way relieve the Code Authority of any 
of its responsibilities under this Code.. 

8. Any person allected by an action taken by the Code Authority 
shall have the right to appeal to the Administrator. 

9. In addition to the information required to be submitted to 
the Code Autliority, there shall be furnished to government agencies 
such statistical information as the Administrator may deem neces- 
sary for the purj^oses recited in Section 3 (a) of the Act. 

10. The Administration of this Code, so far as it affects such 
establishments operating under the Ketail Code as are commonly 
known as department stores or specialty stores, whose millinery de- 
partments arc but one of numerous departments of such establish- 
ments, and the volume of business of whose millinery departments 
constitutes not more than ten percent (10%) of the volume of busi- 
ness of the entire establishment shall be vested in the Retail Code 
Authority. Said Retail Code Authority shall be responsible for 
the Administration of this Code as herein provided to the Adminis- 
trator in charge of the Code of Fair Competition for the Millinery 
Industry. Nothing herein contained shall be construed as relieving 
the millinery department of any department or specialty store from 
the provisions of this Code. 

Article VII — N.R.A. Label 

1. All millinery manufactured subject to the provisions of this 
Code shall bear an NRA label or an authorized substitute therefor 
to symbolize to purchasers of said millinery the conditions under 
which said millinery has been manufactured. 

2. Under the powers vested in the Administrator by Executive 
Order of October 14, 1933, and under grant of the necessary authority 
by him, the Code Authority shall have the exclusive right in this 
industry to issue and furnish said labels to the members thereof. 

3. Each label shall bear a registration number especiall}^ assigned 
to each member of the industry by the Code Authority, and shall 
remain attached to all such millinery when sold to the retail dis- 
tributor. 

4. Any and all members of the industry may apply to the Code 
Authority for a permit to use such NRA label, which permit to use 
the label shall be granted to them, but only if and so long as they 
comply with this Code. 



12 

5. Subject to the approval of the Administrator, the Code Au- 
thority shall establish rules and regulations and appropriate ma- 
chinery for the issuance of labels and the inspection, examination 
and supervision of the practices of members of the industry using 
such labels for the purposes of ascertaining the right of such mem- 
bers of the industry to the continued use of said labels ; of protecting 
purchasers in relying on said labels; and of insuring to each indi- 
vidual member of the industry that the symbolism of said label will 
be maintained by virtue of compliance with the provisions of this 
Code by all other members of the industry using said label. 

6. The charge made for such labels by the Code Authority shall 
at all times be subject to supervision and orders of the Administra- 
tor and shall be not more than an amount necessary to coyer the 
actual reasonable cost thereof, including actual printing, distribu- 
tion, administration, and supervision of the use thereof as herein- 
above set forth. 

Article VIII — Trade Practices 

1. iTiaccurate Advertising. — No member of the industry shall pub- 
lish advertising (whether printed, radio, display, or of any other na- 
ture), which is misleading or inaccurate in any material particular, 
nor shall any member, in any way, misrepresent any goods (includ- 
ing but without limitation its use, trade mark, grade, quality, quan- 
tity, origin, size, substance, character, nature, finish, material, con- 
tent, or preparation) or credit terms, values, policies, services, or the 
nature or form of the business conducted. 

2. False Billing. — No member of the industry shall knowingly 
withhold from or insert in any quotation or invoice any statement 
that makes it inaccurate in any material particular. 

3. Inaccurate Labeling. — No member of the industry shall brand 
or mark or pack any goods in any manner which is intended to or 
does deceive or mislead purchasers with respect to the brand, grade, 
quality, quantity, origin, size, substance, character, nature, finish, 
material content, or preparation of such goods. 

4. Inaccurate references to Competitors.^ etc. — No member of the 
industry shall publish advertising which refers inaccurately in any 
material particular to any competitors or their goods, prices, values, 
credit terms, policies, or services. 

5. Threats of Law Suits. — No member of the industry shall publish 
or circulate unjustified or unwarranted threats of legal proceedings 
which tend to or have the effect of harassing competitors or intimi- 
dating their customers. Failure to prosecute in due course shall be 
evidence that any such threat is unwarranted or unjustified. 

6. Secret Rebates. — No member of the industry shall secretly di- 
rectly offer or make any payment or allowance of a rebate, refund, 
commission, credit, unearned discount, or excess allowance, whether 
in the form of money or otherwise, nor shall a member of the indus- 
try secretly offer or extend to any customer any special service or 
privilege not extended to all customers of the same class, for the 
purpose of influencing a sale. 

7. Selling on Consignment. — No member of the industry shall ship 
goods on consignment except under circumstances to be defined by the 
Code Authority and approved by the Administrator. 



13 

8. BrJhing Employees. — No member of the industry shall give, per- 
mit to be given, or directly offer to give, anything of value for the 
purpose of influencing or rewarding tlie action of any employee, 
agent, or representative of another in relation to the business of the 
employer of such employee, the principal of such agent or the repre- 
sented party, without the knowledge of such employer, principal, or 
party. 

9. Interference with Another'^ s Contracts. — Xo member of the 
industry shall 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. 

10. Return of Merchandise. — Xo member of the industry shall 
accept for credit the return of merchandise from a purchaser, imless 
such merchandise is not in accordance with the purchaser's specifica- 
tions and in accordance Avith the order placed; if merchandise is not 
in accordance with the purchaser's specifications or is not in accord- 
ance with the order placed, then and in such event such merchandise 
may be returned not lat-er than five (5) days after the receipt thereof. 
Under no circumstances shall the return of merchandise be accepted 
b}' a member of the industry if retained by the purchaser for more 
than five (5) days after the receipt thereof. 

11. Assignments. — Xo member of the industry shall hereafter take 
or receive directly or indirectly from any customers, either before 
or after the delivery of merchandise, an assignment of accounts 
receivable, or security in any form whatsoever for payment of the 
purchase price of merchandise without first modifying the Code 
Authority that such assignment or security is about to be received. 

12. Terms and Discounts. — The Code Authority shall have power 
to recommend to the Administrator provisions concerning uniform 
terms and discounts, wdiich recommendations, upon the approval of 
the Administrator, shall become effective as part of this Code. 

13. F.O.B. Shipments. — The Code Authority shall have power to 
recommend to the Administrator provisions concerning F.O.B. 
shipments, which provisions shall, upon the approval of the Admin- 
istrator, become effective as part of this Code. 

14. Allowance fo-r Advertising. — The Code Authority shall have 
power to recommend to the Administrator provisions concerning 
allowances or discounts for advertising or payment for space in news- 
papers, magazines, guides, or directories on Ijehalf of the retailers to 
be used in promoting the sale of merchandise to the consumer, 
which recommendations shall, upon the approval of the Admin- 
istrator, become effective as part of this Code. 

15. Other Vnfair Practices. — Nothing in this Code shall limit 
the effect of an adjudication by the Courts or holding by the Fed- 
eral Trade Commission on complaint, finding, and order, that any 
practice or method is unfair, providing that such adjudication or 
holding is not inconsistent with any provision of the Act or of 
this Code. 

% Article IX — Modification 

1. This Code and all the provisions hereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of subsection (b) of Section 10 of the National Industrial Recovery 



14 

Act, from time to time, 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 and hearing as he shall specify, and to become effective 
on approval of the President, except as otherwise provided herein. 

Article X — 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 XI 

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

Article XII 

Efeotive Date. — This Code shall become effective on the second 
Monday following its approval by the President of the United States. 

Approved Code No. 151. 
Registry No. 228-03. 



Approved Code No. 152 
CODE OF FAIR COMPETITION 

FOR THE 

CAN MANUFACTURERS INDUSTRY 

As Approved on December 15, 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 Can Manufacturers Industry, and hear- 
ings having been held thereon and the Administrator having 
rendered his report containing an analysis of the said code of fair 
competition, together with his recommendations and findings with 
respect thereto, and the Administrator having found that the said 
code of fair 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 
section 3 of article III be amended by adding thereto the following : 

'"''TerHtories and possessions wage district. — All other territories 
and possessions of the United States, to which the provisions herein- 
after set forth as to the Hawaiian Wage District shall apply." 

26902° 244-152 33 (15) 



16 

And provided further, that the following be added under section 
4 of article VI, at the end of the first sentence : 

" In addition to the above information there shall be submitted 
to Government agencies such statistical information as the Adminis- 
trator may deem necessary for the purposes recited in section 3 (a) 
of the National Industrial Recovery Act." 

FRANKLIN D. ROOSEVELT. 
Approval recommended: 
Hugh S. Johnson, 

Administrator. 

The White House, 

December 15, 1933. 



November 29, 1933. 
The Presidext, 

The White House. 

Sir: This is a report on the Code of Fair Competition proposed 
for the Can Manufacturers Industry in the United States and 
Hawaii, and on the hearing conducted thereon in Washington, D.C., 
on September 20, 1933, in accordance with the provisions of the 
National Industrial Recovery Act. 

Provisions of the Code as to Wages and H&urs. — The Code pro- 
vides for a 4:0-hour week and an 8-hour day, with an allowance 
of 48 hours per week for not to exceed six weeks in any six-month 
period on Packers' Cans ; and 48 hours per week for not to exceed 
three weeks in any six-month period on General Line Cans. Hours 
of emplo3^ment in excess of the above must be paid for at the rate 
of one and one half times the regular hourly rate. 

The limitation of 40 hours of work per week applies also to office 
employees. 

The Industry originally proposed rates of 250 and 30<i for the 
South and North as representing a material increase over rates being 
paid, but at the earnest request of the Administration these differ- 
entials have been eliminated and the minimum wage increased to 
321/20 per hour. 

Child Labor is prohibited, and no person under 18 5'^ears of age 
is to be employed in certain defined hazardous occupations of the 
Industry. 

Provision is made for the equitable adjustment of wages above the 
established minimum. 

The Can Manufacturers Industry represents a volume of business 
amounting to about $325,000,000 annually and the Industry has been 
represented in the consideration of the Code by approximately fifty 
percent of the membership, equivalent to approximately eighty-five 
percent of the sales volume of the known members of the Industry. 

There are two distinct lines of business in the Industry, that of 
'•' general line " cans, which are used in packing a great variety of 
articles, and " packers " cans, which are used in the packing of all 
foodstuffs, vegetables, meats, fish, milk, etc., and which comprise 
sixty percent of the output. The Industry itself has no control over 
the time at which the products shall be required and delivered, as 
crops must be harvested and packed immediately upon ripening to 
avoid spoilage or deterioration. Weather conditions which vary and 
cannot be forecast control the seasons for different commodities. 
Furthermore, it is impracticable to manufacture large quantities of 
cans in anticipation of demands, since seasonal requirements of pack- 
ers cannot be estimated and since the bulk space required makes the 
cost of storage prohibitive. 

Approximately 27,978 people are employed, of which seventy-four 
percent are men and twenty-six percent women, with an average 

(17) 



18 

pay roll amounting to $478,450 per week, or approximately $24,000,000 
per annum. 

The average minimum hourly rates of pay in the Industry are 
shown as follows : 

Gents 

1926 23. 6 

1929 28. 5 

Sept. 1933 25 

Under the Code 82. 5 

The minimum rate provided under the Code, therefore, represents 
an increase over the previous existing average minimum for 1926 of 
thirty-seven and seven tenths percent ; for 1929 of fourteen percent ; 
and over the present minimum of thirty percent. 

Under the hours of labor proposed, it is estimated that the 
Industry will be obliged to increase its employment at least twelve 
and one half percent. 

I believe that the Code is fair to Industry, to Labor, and to the 
Consumer, and accomplishes the intent and purpose of Title I of 
the National Industrial Recovery Act. 

Findings. — The Deputy Administrator finds that: 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including, without limita- 
tion, subsection (a) of Section 7 and subsection (b) of Section 10 
thereof; and that 

(b) The applicant group herein, imposes no inequitable restric- 
tions on admission to membership and is truly representative of the 
Can Manufacturers Industry; and that 

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

Accordingly, I hereby recommend the approval of this proposed 
Code of Fair Competition for the Can Manufacturers Industry. 
Respectfully, 

Hugh S. Johnson, 

Adndnistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

CAN MANUFACTURERS INDUSTRY 

Article I — Purpose of the Code 

This code is adopted pursuant and subject to Title I of the Na- 
tional Industrial Recovery Act with the purpose of effectuating the 
policy therein enunciated insofar as applicable to the Can Manufac- 
turers Industry. 

Article II — Definitions 

Whenever used in this Code or in any schedule annexed hereto, 
the terms hereinafter in this Article II shall, unless the context shall 
otherwise clearly indicate, have the respective meanings hereinafter 
in this Article set forth : 

(a) The term " Code " as used herein means and includes this 
Code and all schedules annexed hereto as originally approved by the 
President and all amendments hereof and thereof made as herein- 
after provided. 

(b) The term " Industry ", as used herein, means and includes the 
business of manufacturing, producing, selling, and distributing any 
type or kind of cans, containers, and packages, made wholly or in 
part from tin plate, black plate, or similar kind of sheet metal 
(except those made partly of fibre and/or paper), and used chiefly 
for original distribution of commodities, whether such cans, con- 
tainers, and packages are for use and consumption by maker, or are 
for sale, or are used in connection with and incidental to the major 
and prime business of maker, except where such can or container is 
manufactured and sold solely as an original or replacement or 
auxiliary part of the product of refrigerating machinery industry 
as now or hereafter organized and is not sold for use as a container 
for distribution of food or other products. 

(c) The term " packers cans " as used herein means and includes 
all cans, containers, and packages produced by the Industry for the 
packing, preservation, and distribution of perishable commodities. 
The term " general line cans " as used herein means and includes all 
cans, containers, and packages produced by the Industry other than 
those herein defined as " packers cans." 

(d) The term " employer " as used herein means and includes, but 
without limitation, every individual, partnership, firm, association, 
or corporation or other entity engaged in the business of the Industry 
as herein defined. 

(19) 



20 

(e) The term " assenting employer " as used herein means and 
includes every employer, as herein defined, who voluntarily assents 
to this Code by signing and delivering the letter of assent set forth 
in Schedule A hereto annexed. 

(f ) The term " employee " as used herein shall apply to every 
person employed by an employer as herein defined. 

(g) The term "Administrator " as used herein shall mean the 
Administrator appointed by the President under Title I of the 
National Industrial Recovery Act. 

(h) The term the " President " means the President of the United 
States of America. 

Article III — Labor Code 

Section 1. (a) Employees shall have the right to organize and 
bargain collectively through representatives of their own choosing, 
and shall be free from the interference, restraint, or coercion of em- 
ployers of labor, or their agents, in the designation of such repre- 
sentatives or in self-organization or in other concerted activities for 
the purpose of collective bargaining or other mutual aid or 
protection ; 

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

(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. No person under sixteen (16) years of age shall be em- 
ployed in the Industry; provided, however, where a state law re- 
quires a higher minimum age, that no person below the age so speci- 
fied shall be employed within that state. No person under eighteen 
(18) years of age shall be employed in the industry on stamping, 
punching, and blanking presses on which material is fed direct to 
dies by hand, tinning^ and hot-galvanizing operations. 

Sec. 3. The following wage districts have been established: 

United States Wage District : All states of the United States shall 
be considered within the United States Wage District. 

Hawaiian Wage District: All islands of the Territory of Hawaii 
shall be considered in the Hawaiian Wage District. 

" Territories and possessions wage district. — All other territories 
and possessions of the United States, to which the provisions herein- 
after set forth as to the Hawaiian Wage District shall apply." * 

Sec. 4. Until changed by amendment of this Code, as hereinafter 
provided — 

(a) No employer shall employ any employee for more than 40 
hours in any week, without the payment of overtime ; provided, how- 
ever, that in order to meet the increased demands of the canners over 
which the employers have no control, the said hours of employment 
in the manufacture of " Packers Cans " may be increased to forty- 
eight (48) hours per week for not to exceed 6 weeks in any six 

* Approval of this Code is made conditional upon insertion of this paragraph per 
Executive Order approving the Code. 



21 

months without the payment of overtime; and provided further, 
that in order to meet contingencies over which the employers have 
no control, the said hours of employment in the manufacture of 
"General Line Cans" may be increased to forty-eight (48) hours 
per we^k for not to exceed three (3) weeks in any six (6) months 
without the payment of overtime, 

(b) All employees, except those mentioned in paragraphs (d) and 
(e), if employed for more than the maximum hours per week pro- 
vided in paragraph (a) shall be paid for all excess time at the rate 
of one and one half times the regular hourly rate at which such 
employees shall be employed ; but all such employees if employed for 
more than eight (8) hours in any one day shall be entitled to be paid 
overtime for such excess hours per da^'^ at the same overtime rate 
even if not entitled to overtime on the weekly basis provided for in 
the aforesaid paragraph (a). Any time worked on Sundays or legal 
holidays shall be paid for at the same overtime rates. 

(c) No emploj''ee shall be paid less than thirty-two and one half 
(3214) cents per hour in the United States Wage District, nor less 
than the minimum rate for the same class of work on July 15th, 1929, 
in the Hawaiian Wage District. That 80% of the emploj-ees of each 
factory operated under this Code shall receive higher rates of wages 
than the minimums herein specified. 

(d) The pro\'isions of this Article III shall not apply to execu- 
tives, those employed in a managerial or executive capacitj^ research 
technicians, or in any other capacity of sole responsibility who re- 
ceive more than $35 per week, watchmen, traveling and outside 
salesmen, and outside service men and all employees engaged in tak- 
ing, compiling, or reporting inventories; provided, no watchmen 
shall be employed in excess of fifty-six (56) hours per week without 
the payment of overtime, which shall be at the rate of one and 
one half times the regular hourly rate at which such employees shall 
be employed. 

(e) No employee engaged in office and clerical work shall be 
paid less than $14 per week in the United States Wage District and 
Hawaiian Wage District. 

(f ) The hourly rates of wages of employees now being paid in 
excess of the established minimum shall be equitably adjusted. 

(g) This Section 4 establishes a minimum rate of pay regardless 
of whether an employee is compensated on a time rate, piecework, 
or other basis. 

Akticle IV — Unfair Practices 

Section 1. For all purposes of this Code the following described 
acts shall constitute unfair practices : 

(A) The making, causing, or permitting to be made or published 
any false, misleading, or deceptive statements of or concerning the 
business policies, methods, or products, or price for any products of 
any employer in the Industry, or the credit standing or ability of 
any such employer thereof to perform any work or manufacture or 
produce any products ; 

(B) The payment or allowance of rebates, refunds, commissions, 
credits, or unearned discounts, whether in the form of money or 
otherwise, or extending to certain purchasers special services or 



22 

privileges not extended to all purchasers under like terms and con- 
ditions; excejDting, however, such differentials or differences be- 
tween purchasers as are permitted by the terms of Section 2 of 
the Clayton Act; 

(C) The practice of giving money or any other form of gratuity 
or remuneration, directly or indirectly, to persons placing orders 
for the purchase of any products of the Industry or to any officer, 
employee, agent, or representative thereof, as well as the acceptance 
of the money or other forms of gTatuity, but this shall not apply 
to the payment of commissions to brokers placing orders for their 
customers ; 

(D) The practice of inducing or attempting to induce by any 
means any party to a contract with an employer in the Industry to 
violate such contract; and 

(E) Any violation of any other provision of this Code, particu- 
larly Article III hereof. 

Nothing in this Section 1 contained, however, shall be so con- 
strued as to prevent the performance by any employer in the Indus- 
try of any valid bona fide contract made and entered into before 
the effective date of this Code; provided, however, that such con- 
tract has not been made and entered into before the effective date 
hereof in contemplation thereof and with intent to defeat the pur- 
pose hereof. 

Sec. 2. The above-described unfair practices and all other prac- 
tices which shall be declared to be unfair practices by any amendment 
to this Code, adopted as provided in Article VIII hereof, and at the 
time in effect shall be unfair methods and practices of competition in 
commerce and the using or practicing of any of them shall be a vio- 
lation of this Code, and any person, partnership, firm, association 
or corporation, engaged in the Industry (whether he has voluntarily 
assented to this Code as herein provided or not) who shall, directly 
or indirectly, through any officer, employee, agent or representative, 
knowingly use or practice any such unfair practice shall be guilty of 
a violation of the Code within the meaning of Title I of the National 
Industrial Recovery Act. 

Article V — Adjustment of Prior Contracts 

Section 1. This Code recognizes the existence of contracts for the 
sale of the products of the Industry entered into prior to June 16, 
1933, the effective date of the National Industrial Recovery Act, and 
providing for deliveries subsequent to said date, which lack clauses 
or provisions whereby the price shall be adjusted to cover increased 
costs resulting from the operations of the National Industrial Re- 
covery Act. Since such increases in cost are beyond the control of 
the seller, it is equitable that such contracts shall be adjusted to re- 
flect the increased costs resulting from the operation of the provisions 
of this Code. Further, if the fulfillment of orders is delayed or pro- 
longed as the result of the o^Derations of this Code, appropriate time 
may be allowed for the completion of such orders or contracts. The 
Board of Governors of this Code is hereby constituted an agency to 
assist in effecting such adjustments where adjustments are not agreed 
upon between the parties, but only when requested so to do by an 
assenting employer desiring such assistance. 



23 

Akticle VI — Administration 

Section 1. Any employer may voluntarily assent to this Code by 
signing and delivering to the Board of GoveiTiors, a letter substanti- 
ally as set forth in Scliedule A hereof. 

To the extent required or permitted by or under the provisions of 
Title I of the National Industrial Recovery Act the provisions of this 
Code shall apply to and be binding upon every employer as defined 
in Article II hereof, whether or not such employer has voluntarily 
assented to this Code as herein provided ; but only such employers as 
shall have voluntarily assented to this Code as hereinafter provided, 
shall be entitled to participate in its administration and to vote for 
members of the Board of Governors as herein provided. 

Sec. 2. This Code shall be administered by a Board of Governors 
of twelve (12) in number, chosen and elected from the employers 
of the Industry who have voluntarily assented to this Code in the 
manner and as provided in Schedule B hereto annexed and such 
Governors so elected shall serve for a period of one year from the 
date of their election or until their successors are elected and qualify. 
The election, duties, and powers of the Board of Governors, and the 
rules and regulations in respect of meetings of assenting employers, 
are set forth in Schedule B hereto annexed. The Administrator may 
appoint not to exceed three (3) members to serve without vote with 
the Board of Governors in the administration of this Code. 

Sec. 3. The expenses of formulating, putting into effect, and 
administering this Code shall be borne by and assessed against the 
employers of the Industry who have voluntarily assented to this 
Code and also such employers of the Industry w^ho receive the bene- 
fits of this Code. Such assessments shall be made as provided in 
Schedule B annexed hereto. 

Sec. 4. In order to keep the President and the Administrator 
informed as to the observance or nonobservance of this Code, each 
emploj'er shall prepare and file with the Board of Governors at such 
times and in such manner as said Board may prescribe statistics cov- 
ering the number of persons employed, wage rates, hours of working, 
and such other data or information respecting the conditions of 
labor as the Board of Governors may require, but such information 
shall be treated as confidential and used only and for the sole pur- 
pose herein set forth. " In addition to the above information there 
shall be submitted to Government agencies such statistical informa- 
tion as the Administrator may deem necessary for the purposes re- 
cited in section 3 (a) of the National Industrial Recovery Act."* 
Any action taken by the Board of Governors or other group within 
the Industry, relative to the administration of this Code, may in 
the discretion of the Board of Governors or such other group be 
submitted to the Administrator for approval, and shall in any case 
be subject to the disapproval of the Administrator. 

Article VII — General Provisions 

Section 1. As soon as employers in the Industry shall have volun- 
tarily assented to this Code by executing letters substantially in the 

* Approval of this Code is made conditional upon insertion of this paragraph per 
Executive Order approving the Code. 



24 

form set forth in Schedule A annexed hereto sufficient in number and 
importance to make the same truly representative of the Industry, 
such assenting employers shall elect the members of the Board of 
Governors as nerein provided, and said Board, upon being so elected, 
shall promptly submit this Code to the President, pursuant to the 
provisions of Title I of the National Industrial Recovery Act, and 
upon the approval of this Code by the President, pursuant to provi- 
sions of such Title I, it shall constitute a binding contract by and 
among those who have assented thereto as in this Code provided, 
subject, however, to amendment and termination as in Article VIII 
provided. 

Sec. 2. This Code shall become effective fifteen (15) days after 
approval by the President, which date shall be the effective date 
hereof. 

Sec. 3. The President may from time to time cancel or modify any 
order, approval, license, rule, or regulation issued under Title I of 
the National Industrial Recovery Act. 

Article VIII — Amendments and Termination 

Section 1. Any employer assenting to this Code that may here- 
after desire to have the Code amended or any supplementary provi- 
sions added should take the following procedure: Propose the 
amendment to the Board of Governors who shall, if a majority of 
the Board shall approve the proposed amendment, submit it to a' 
meeting of the employers assenting to this Code especially called for 
that purpose upon due notice ; and if at any such meeting assenting 
employers having the right to cast at least 75% of all the votes that 
might" be cast if all such assenting employers were present, shall 
vote in favor of the adoption of such proposed amendment, such 
amendment shall be submitted by the Board of Governors to the 
President for approval, and such proposed amendment shall take 
effect as a part of this Code upon such approval thereof by the 
President. Employers voting on such amendments as above pro- 
vided may vote in person, by proxy in writing, or may vote in 
writing without being personally present. 

Sec. 2. This Code shall continue in effect so lon^ and only so long 
as the National Industrial Recovery Act shall be in force and effect 
but in no event after June 16, 1935, and shall in all respects be sub- 
ject to the provisions and conditions thereof; provided, however, 
that this Code may be terminated at any time by the same action 
by assenting employers, with the approval of the President, as is 
above provided for the amendment thereof. Such termination shall 
not release any employer from the payment of any unpaid assess- 
ment theretofore made. 

Approved Code No. 152. 
Registry No. 1147-02. 



SCHEDULE A 

FoBM OF Lehtee of Assent to Code 

The undersigned by signing and delivering tliis letter to S. L. Buschman, 
Secretary of the Board of Governors, 110 East 42nd Street, New York City, 
assents to all of the terms and conditions of the Code of Fair Competition 
of the Can Manufacturers Industry, a copy of which is annexed hereto ; and 
such assent shall be effective as of the date on which said Code shall 
become effective as therein provided or the date of the delivery of this letter, 
whichever shall be later. The undersigned hereby agrees with everyone 
similarly assenting to said Code, that said Code constitutes a contract between 
the undersigned and all such similar assenters and agrees to be bound by the 
provisions thereof as well as the provisions in Schedule B annexed thereto 
including particularly the right of assessment for expenses as provided in 
Section 3 of Article VI and Schedule B annexed thereto, and that the election 
of the members of the Board of Governors, heretofore had, pursuant to Section 
1 of Article VII, be ratified and confinred. 
Very truly yours. 



(25) 



SCHEDULE B 

Rules and Regulations for the Administbation of the Code 

Section 1. Each employer voluntarily assenting to the Code by executing 
and delivering the letter of assent provided for in the Code shall be entitled to 
participate in its administration as therein and herein provided and shall be 
entitled to vote at all meetings of employers under the Code ; and the Board of 
Governors shall determine and resolve all questions which might arise as to 
the qualification of any assenting employer and his right to cast a vote or the 
number of votes to which he may be entitled. Any assenting employer may vote 
by proxy in writing. 

Sec. 2. In order to insure equitable representation of the views of the assent- 
ing employers in teiTQs of their numbers and volume of business, at each meet- 
ing of such assenting employers and for all purposes requiring the vote of said 
such assenting employers (excepting, however, in the election of members to the 
Board of Governors, which is especially provided for in Section 4 hereof), each 
assenting employer shall have and may cast one vote for each and every factory 
or plant operated by such assenting employer for the manufacture and produc- 
tion of the products of the Industry covered by this Code, that is to say, each 
assenting employer shall have and may cast as many votes as such assenting 
employer may operate such plants or factories, provided, however, that each 
assenting employer shall have at least one vote. 

Sec. 3. All meetings of the assenting employers shall be held from time to 
time when called by the Chairman of the Board of Governors on ten days' 
notice, except as otherwise herein provided. 

Sec. 4. The members of the Board of Governors under this Code shall be 
elected in the following manner : Each assenting employer operating more 
than twenty-five (25) factories shall appoint three (3) members to the Board 
of Governors, and each assenting employer operating four (4) or more fac-- 
tories, but not more Ihan twenty-five (25) factories, shall appoint one (1) 
member to the Board of Governors ; the remaining members of the Board of 
Governors shall be elected by the assenting employers opearting less than 
four (4) factories and not having the right of appointment hereinabove pro- 
vided for. In the event that any employer shall be entitled to a different or 
greater representation due to a change in the number of its factories or other- 
wise, the number of members of the Board of Governors may be increased ; 
but such increase shall be made only in a manner which shall not disturb the 
ratio of the number of appointed members to the number of elected members 
which shall always continue in the ratio of seven (7) to five (5) or its nearest 
equivalent. 

Seo. 5. "Vacancies for any cause on the Board of Governors shall be filled as 
follows : If such vacancy should occur amongst the members of the Board 
appointed as above provided, then such vacancy shall be filled by the assenting 
employer whose appointee has ceased to be a member of the Board of Gov- 
ernors, it being the intention that each of the assenting employers operating 
factories, as in Section 4 provided, shall at all times have the representation on 
the Board of Governors provided in Section 4 hereof; if such vacancy should, 
however, occur amongst the members of the Board elected by the assenting 
employers not having the right of appointment, as provided in Section 4 
hereof, then the remaining members of the Board of Governors elected by 
employers not having the right of appointment shall fill such vacancy. 

Sec. G. If, at any time, there should be a tie vote in the Board of Governors 
and a deadlock created thereby, then and in such case said Board of Governors 
shall submit the question deadlocked to arbitration. Those members of the 
Board of Governors assenting to the proposition deadlocked shall npi)oint one 
arbitrator; those dissenting, a second arbitrator. If these two arbitrators shall 

(2G) 



27 

not agree they shall select a third arbitrator. A decision of a majority of 
these three arbitrators shall be final and conclusive. 

Seo. 7. Assenting employers entitled to cast at least 75% of all votes that 
might be cast at a meeting, if all the assenting members were present or duly 
represented in person or by proxy thereat, shall constitute a quorum for the 
transaction of business. 

Sec. 8. The Board of Governors shall have all the powers and duties con- 
ferred by this Code and generally all such other powers and duties as shall 1)6 
necessary or proper to enable it fully to administer this Code and to effectuate 
its purposes and from time to time appoint and remove, and to fix the compen- 
sation of all employees, including accountants, attorneys, and experts, as said 
Board shall deem necessary or proper for the purpose of administering this 
Code. 

The Board of Governors may also from time to time appoint from the assent- 
ing employers' committees, but the Board of Governors shall have no right to 
delegate its power to such committees. Any information that may he furnished 
by any assenting employer to the Board of Governors, or to any such Commit- 
tee, if given in confidence, shall be treated as confidential by them. 

The Board of Governors shall have power from time to time to interpret 
and construe the provisions of this Code subject to review by the assenting 
employers at a special meeting called for that purpose. Such meeting shall be 
called on ten days' notice, upon the written request of three (3) members of 
the Board of Governors or at least 10% in voting power of the assenting em- 
ployers. Any interpretation and constnictiou so established shall be subject to 
review by the Administrator. 

It shall be the duty and right of the Board of Governors, from time to time, 
to call the attention of the assenting employers to any usages or practices 
(otlier than those described and set forth in Article IV of the Code), deemed 
by them to be unfair and detrimental to the Industry aiid harmful or not con- 
ducive to fully carry out the purposes of the National Industrial Recovery Act 
and any such usage or practice, upon being condemned by a vote of a least 75% 
of the total vote of assenting employers at a meeting specially called for that 
purpose at which a quorum was present, shall, If and when sanctioned by the 
President as an amendment to the Code, be thereafter deemed an unfair com- 
petitive practice, and any violation thereof, as in said Article IV of the Code 
provided, shall be a violation of this Code within the meaning of Title I of the 
National Industrial Recovery Act. 

Sec. 9. The expenses of formulating, putting into effect, and administering the 
Code shall be borne by the assenting employers and such employers of the 
Industry who receive the benefits of this Code. The Board of Governors may 
from time to time make such assessments on account of such expenses against 
such employers as it shall deem proper. The part of such expenses which shall 
be assessed against such employers shall be assessed by the Board of Governors 
taking into account the number of employees employed by such employers and 
an equitable consideration of their position in the Industry, and all such 
assessments so levied, should be accompanied by a statement of such expenses. 
Failure of any such assenting employer to pay any such assessment for a period 
of thirty (30) days after the date on which it became payable shall entitle the 
Board of Governors to deprive such defaulting employer of his participation in 
the administration of the Code as therein and herein provided, but such em- 
ployer shall continue to be liable for all due and unpaid assessments which he 
agrees to pay. 

o 



Approved Code No. 153 
CODE OF FAIR COMPETITION 

FOR THE 

VALVE AND FITTINGS MANUFACTURING 
INDUSTRY 

As Approved on December 15, 1933 

BY 

PRESIDENT ROOSEVELT 

— a 
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 Valve and Fittings Manufacturing In- 
dustry, and hearings having been held thereon and the Admin- 
istrator having rendered his report containing an analysis of the said 
code of fair competition together with his recommendations and 
findings with respect thereto, and the Administrator having found 
that the said code of fair competition complies in all respects with 
the pertinent provisions of title I of said act and that the require- 
ments of clauses (1) and (2) of subsection (a) of section 3 of the 
KP 1 M fl pi" li f) vp nppn 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 recommendations, 
and findings of the Administrator and do order that the said code 
of fair competition be and it is hereby approved, on condition that 
the filed effective price lists, as shown in article IV, section (1), 
paragraph (4), shall be open to the inspection of the trade factors 
concerned. 

FRANKLIN D. ROOSEVELT. 
Approval recommended : 
Hugh S. Joiixson, 

Administrator. 
The White House, 

December 15, 1933. 

(29) 



December 4, 1933. 
The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Valve and Fittings Manufacturing Industry, the hearing having 
been held in Washington on the 18th day of September 1933 in 
accordance with the provisions of the National Industrial Recovery 
Act. 

PR0VISI0K8 AS TO HOURS AND WAGES 

Employment is limited to 8 hours per day, or 40 hours per week, 
with the exception of those employees engaged on emergency, main- 
tenance and/or repair work or in cases where reduction of hours of 
highly skilled workers would unavoidably reduce or delay employ- 
ment of others or cause damage to equipment or products. Exemx3- 
tions are made for executives and employees in a managerial, advis- 
ory, or technical capacity receiving more than $35.00 per week; and 
watchmen ; provided, that watchmen shall not work more than 6 days 
nor more than 56 hours per week. 

A minimum rate of 40 cents ^er hour is established with exception 
of 32 cents per hour minimum in the following states : New Mexico, 
Texas, Arkansas, Tennessee, North Carolina, South Carolina, 
Georgia, Florida, Alabama, Mississippi, and Louisiana. 

Females employed on operations not requiring technically skilled 
men may be paid not less than 90% of the minimum rate but not 
less than 30 cents per hour. Inexperienced employees between the 
ages of 16 and 21 years, and superannuated employees may receive 
not less than 80% of the minimum rates; provided, that in total they 
do not exceed 5% of the total number of factory mechanical workers 
employed by any employer. 

The minimum weekly salary of $15.00 per week is established in 
cities of over 500,000 population; $14.50 per week in cities of over 
250,000 and not exceeding 500,000 population; and $14,00 per week 
in any city of less than 250,000 population, except office boys or girls 
may be paid not less than 80% of such minimum salaiy. 

Complete copies of the wage and hour provisions of this code 
shall be posted in conspicuous places by each employer. 

ECONOMIC EFFECT OF THE CODE 

In June 1933 employment in this industry had reached the low 
level of 16,000 employees, but since operating under the President's 
Reemployment Agreement, over 19,000 are now employed. Pay rolls 
have correspondingly increased. 

The industry is represented by seven separate and distinct groups 
brought together under one industrial code. The coordinating of 

(30) 



31 

these units must inevitably result in eliminating many of the prac* 
tices that have been harmful to the industry in the past. 
The Administrator finds that : 

(a) The Code as recommended complies in all respects with tho 
pertinent provisions of Title I of the Act, including, without limita- 
tion, subsection (a) of Section T and subsection (b) of Section 10 
thereof ; and that 

(b) The applicant group imposes no inequitable restrictions on 
admission to membership therein and is truly representative of the 
Valve and Fittings Manufacturing Industry; and that 

(c) The Code as recommended is not designed to promote monop- 
olies or to oppress or eliminate 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 on con- 
dition that the filed price lists as shown in Article IV, Section (1) 
paragraph (4), shall be open to the inspection of the Trade Factors 
concerned. 

Respectfully, 

Hugh S. Johnson, 

A drmnistratOr, 



CODE OF FAIR COMPETITION 

FOR THE 

VALVE AND FITTINGS MANUFACTURING INDUSTRY 

Article I — Purpose 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the folloAving provisions are submitted as a Code of Fair 
Competition for the Valve and Fittings Manufacturing Industry, and 
upon approval of the President shall be the standard of fair compe- 
tition for this Industry and shall be binding upon every member 
thereof. 

Article II — Definitions 

President^ Act, Ad^mnistrator. — The terms " President ", "Act ", 
and "Administrator ", as used herein, shall mean, respectively, the 
President of the United States, Title I of the National Industrial 
Recovery Act, and the Administrator of said Title I of said Act. 

Institute. — The term *' Institute ", as used herein, shall mean the 
Valve and Fittings Institute. 

Directors. — The term " Director ", as used herein, shall mean the 
Boards of Directors of the Valve Division and of the Fittings 
Division of the Institute acting jointly. 

Products. — The term " Valves " and " Fittings ", as used herein, 
include all designs of valves, pipe-fittings, fire hydrants, and acces- 
sories, of all classes of ferrous and nonferrous materials, for use 
in the handling of all classes of fluids and gases, such as steam, water, 
oil, gas, air, etc. ; provided, however, that as used in this Code, these 
terms shall not apply to — 

(a) Valves and/or fittings, made by a producer of products within 
another Industry as a part thereof or of a separate assembly peculiar 
to such other Industry, including parts therefor and/or for servicing 
such articles. and not produced and/or sold as separate valves or 
fittings in the general valve or fittings market; 

(b) Plated or plain brass plumbing fittings, shower fittings, lava- 
tory fittings, sink fittings, drinking-fountain fittings, and other 
finished, plated, or plain brass fittings for use in connection with 
plumbing fixtures ; 

(c) Such gas cocks as are made and sold for use on gas ranges, 
gas water heaters, gas space heaters, gas furnaces, gas conversion 
burners, gas incinerators, gas refrigerators, or any other household 
appliances ; 

(d) Cast-iron fittings having hub, bell, or spigot connecting ends 
for attachment to cast-iron " soil pipe " and/or " pressure pipe^' hav- 
ing similar connecting ends; 

(e) The products of the Cast Iron Pressure Pipe Industry, pro- 
vided, however, the provisions of Article IV and no other of this 

(32) 



33 

Code shall apply to those members of the Cast Iron Pressure Pipe 
Industry who normally quote or sell cast-iron flanged fittings and 
flanges of diameters sixteen inches or less on a list and discount 
basis, the said provisions of Article IV hereinabove to apply to, and 
only to, cast-iron flanged fittings and flanges of diameters sixteen 
inches or less in instances where they are quoted or sold on a list 
and discount basis by such member of the Cast Iron Pressure Pipe 
Industry ; 

(f) patented lubricated valves and/or cocks; 

(g) pipe nipples as defined in the Code of Fair Competition for the 
Pipe-Nii:)ple Manufacturing Industry, duly approved by the Presi- 
dent on November 27, 1933. 

Members of the Industry. — The term " members of the Industry ", 
as used herein, shall mean any producer who manufactures, wholly 
or in part, any of the products of the Industry, as herein defined, 
for sale ; and any Pipe-Fabricator who assembles any of said prod- 
ucts with pipe fabricated by him, for sale. 

Members of code. — The term " members of Code ", as used herein, 
shall mean any member of the Industry who shall expressly signify 
assent to this Code. 

Markets. — The term " markets ", as used herein, shall mean 

Section 1. No provision of this Code relating to prices or terms of 
selling, shipping or marketing, shall apply to export markets. Ex- 
port markets, as used herein, shall include markets in any terri- 
tories or possessions of the United States not on the Continent of 
North America, and the Panama Canal Zone except when the United 
States Government is the purchaser. 

Sec. 2. Subject to the approval of the Code Authority, the excep- 
tions established by the foregoing section shall apply also to sales 
or shipments of products of this Industry actually used in manu- 
facture or assembly for export markets. 

" Primary " Market. — A primary market is that in which a Dis- 
tributor purchases from a member of the Industry. 

" Secondary " Market. — ^A secondary market is that which may be 
served by a Distributor. 

Trade Factors. — The term " trade factors ", as used herein, shall 
mean: 

Distributor. — One whose principal business is the purchase and 
resale, to consumers or other trade outlets, of products of the Indus- 
try, and who maintains a stock of products in sufficient quantity to 
render normal service to customers. 

Pipe fabricator. — One whose principal business is the threading, 
flanging, bending, or otherwise fabricating of pipe to specifications 
and dimensions, and who also may purchase products of the Industry 
for assembly therewith, for resale to contractors or consumers. 

Pi-pe contractor. — One whose principal business is the installation 
of piping systems not fabricated by himself or fabricated wdiolly 
or in part by himself. 

General contractor. — One whose principal business is the construc- 
tion and equipment of a plant for a customer and who sublets the 
purchase, fabrication, and installation of piping to a pipe contractor. 



34 

Original equipment manufacturer. — One whose principal business 
is the manufacture of devices or equipment in connection with which 
products of the Industry are used as parts or accessories. 

Consuvier. — One who purchases products of the Industry for his 
own use and not for resale. 

Employee. — The term " employee ", as used herein, shall mean 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. 

Employer. — The term " employer ", as used herein, shall mean any- 
one who engages the services of employees. 

Effective date. — The term " effective date ", as used herein, shall 
mean five (5) days after this Code shall have been approved by 
the President of the United States. 

Article III — Hours and Wages 



I 



Section 1. All members of the Industry shall be subject to the 
rovisions of the Act set forth in subsection (a) of Section 7, Title 
, thereof, as follows : 

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

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

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

Sec. 2. (1) No employer shall employ (a) any person under the 
age of sixteen (16) years, or (b) any person under the age of eighteen 
(18) years in any hazardous occupation; provided, however, that 
nothing contained in this Article III shall exempt any employer 
from complying with employment regulations duly enacted by the 
State in which he is engaged as an emploj^er subject to such 
regulations. 

(2) Female employees performing substantially the same work as 
male employees shall receive the same rate of pajj^ as male employees. 

Sec. 3. (1) No employer shall pay any factory or mechanical 
worker less than thirty-two (32) cents per hour in the States of 
New Mexico, Texas, Arkansas, Tennessee, North Carolina, South 
Carolina, Georgia, Florida, Alabama, Mississippi, and Louisiana; 
nor less than forty (40) cents per hour in any other part of the 
United States, or any territory or possessions thereof, on the Con- 
tinent of North America ; provided, however, that an employer may 
employ (a) female employees, for such operations as do not require 
the strength and technical skill of men, at not less than 90% of the 
minimum rates fixed in this paragraph, except that in no case shall 
the ra^ be lefts than thirty (30) cents per hour; subject, however, 



35 

to the provisions of Section 2, paragraph 2 of this Article : and (b) 
inexperienced employees of the classes mentioned in this paragraph, 
between the ages of sixteen (IG) and twenty-one (21) j^ears at a 
rate of not less than eighty (80) percent of the minimmn rates fixed 
in this paragraph ; provided, further, that the total number of those 
less than twenty-one years of age so compensated by any employer 
shall not exceed five (5) percent of the total number of all those 
employed as factory and mechanical workers. 

(^) The rates of compensation established in foregoing Paragraph 
1 snail be guaranteed minimum rates regardless of whether the em- 
ployee is compensated on the basis of a time rate, piecework, or 
otherwise; and any factory or mechanical worker who shall be re- 
quired to work for more than the maximum hours set forth in 
Paragraph 1 of Section 4 hereof, shall be compensated for the over- 
time worked at the rate of time and one half of his or her regular 
rate. 

(3) No employer shall pay any employee not covered under Para- 
graph 1 of this Section 3, including any accounting, clerical, office, 
service, or sales employee within the United States or any territory 
or possessions thereof on the Continent of North America, less than 
at the rate of $15.00 per week in any city of over 500,000 population, 
or in the immediate trade area of such city ; nor less than at the rate 
of $14.50 per week in any city between 250,000 and 500,000 popula- 
tion, or in the immediate trade area of such city; nor less than at 
the rate of $14.00 per week in any city or trade area of less than 
250,000 population, whether these minimum rates of compensation 
are calculated on an hourly, weekly, monthly, piecework, or any 
other basis; provided, however, that an employer may employ office 
boys or girls at not less than eighty (80) percent of the minimum 
rates fixed in this paragraph ; provided further, that the total num- 
ber of office boys and girls so compensated by any employer shall 
not exceed five percent of the total number of all employees covered 
by this paragraph. 

(4) The hourly wage rate or salary of all employees receiving 
more than the minimum rate or salary provided in this Section 3 
shall be equitably adjusted within five (5) days from that on which 
the President approves this Code, if such adjustments shall not have 
been previously made. Report of such adjustments, whether made 
prior to or subsequent to the approval of this Code, shall be made to 
the Code Authority within 90 days from the date of approval of this 
Code. 

(5) To permit the employment of workers who are physically 
handicapped and to avoid their becoming a burden to the State, such 
employees shall be paid not less than eighty (80) percent of the 
minimum rates, provided however, that such employees together with 
such emplo5'ees as mentioned in Paragraph 1 (b) of Section 3 of this 
Article III shall not exceed in number five (5) percent of the total 
number of workers employed by a member of the Industry, and that 
each employer shall report monthly to the Code Authority the num- 
ber and the names of such employees. 

Sec. 4. (1) No employer shall employ any factory or mechanical 
worker for more than forty (40) hours in any one week and no such 

26018° 244-153 33 2 



36 

employee shall be employed for more than eight (8) hours in any 
one day. 

(2) No employer shall employ any other employee including any 
accounting, clerical, office, service, or sales employee (except outside 
salesmen) for more than forty (40J hours in any one week. 

(3) The maximum hours fixed in paragraphs 1 and 2 of this 
section 4 shall not apply to (a) employees on emergency maintenance 
and/or repair work, or to cases where reduction of hours of highly 
skilled workers would unavoidably reduce or delay production or 
employment of others or cause damage to equipment or products; 
(b) watchmen, provided, however, that watchmen shall work not 
more than six days in each seven-day period nor more than fifty- 
six (56) hours in any one week; nor to (c) executives and employees 
in a managerial, supervisory, or technical capacity receiving more 
than $35.00 per week. 

(4) The maximum hours hereinabove provided mark the total 
number of hours during which any employee may be employed 
whether by one or more employers; provided however, that if any 
employee should work for more than one employer for an aggre- 
gate period in excess of such maximum hours without the knowledge 
or connivance of any one of such employers, such employer shall 
not be deemed to have violated this paragraph. 

(5) No employee shall be classified in any one of the foregoing 
exempted classes unless he performs functions identical with those 
performed by employees thus classified on June 16, 1933. 

(6) Each employer shall post complete copies of this Article III 
in conspicuous places in his establishment or establishments accessible 
to his employees. 

Article IV — Distribution 

Section 1. Published Price Policy. — (1) Each member of the In- 
dustry shall publish the prices current on those of his products which 
are normallv available to the trade. Within five days after receipt 
of notice or the effective date of this Code, he shall file, with the 
Code Authority, his prices to each of the Trade Factors defined 
in Article II, provided that the lowest prices that may be filed shall 
be the prices at which he shall sell his products to his Distributors. 
In all practicable instances, a member of the Industry shall employ 
the pricing system of " list-price subject to discount or plus per- 
centage ", and where this system is found impracticable, the member 
of the Industry shall file his equivalent net prices with the Code 
Authority. 

(2) Each member of the Industry shall also file with the Code 
Authority a complete statement of his terms and other conditions of 
sale. 

(3) Thereafter, revised prices and/or revised terms and other 
conditions of sale shall likewise be filed with the Code Authoritj^ If 
the revised prices of any such member are lower than, or if the 
revised terms and other conditions of sale of any such member are 
more favorable to the purchaser than the prices and/or terras and 
other conditions of sale of such member then on file with the Code 
Authority, the revised prices and/or revised terms and other con- 
ditions of sale shall not become effective until 10 days after the 



37 

date of the filing thereof; otherwise the same shall become effective 
on such date as the member of the Industry filing the same shall 
designate. Any other members of the Industry may, if they so 
desire, file revised prices and/or revised terms and other conditions 
of sale which may become effective on such date as the member of 
the Industry filing the same shall designate, which date shall not be 
earlier than the date on which the revised prices and/or revised 
terms and other conditions of sale first filed shall become effective, 
if the revised prices of such other members are not lower than, or 
if the revised terms and other conditions of sale are not more favor- 
able to the purchaser than the revised prices and/or revised terms 
and other conditions of sale first filed ; otherwise the revised prices 
and/or revised terms and other conditions of sale of such other 
members shall not become effective until 10 days after the date of the 
filing thereof. No prices filed under the provisions of this section 
shall be retroactive. Any member of the Industry may, upon request 
and upon payment of the reasonable cost thereof by such member, 
obtain from the Code Authority copies of any such prices and/or 
terms and other conditions of sale so filed, 

(4) All prices and/or terms and other conditions of sale filed at 
the office of the Code Authority as in this Section 1 provided, shall 
be open to the inspection of members of the Industry. 

(5) No member of the Industry shall sell or offer to sell, directly 
or indirectly by any means whatsoever to any Trade-Factors, any 
product of the Industry at a price or on more favorable terms and/or 
other conditions of sale other than those which he has filed with 
the Code Authority and which have become effective. 

(6) All prices and/or terms and other conditions of sale and re- 
visions thereof shall become effective not later than ten (10) days 
after filing. 

Sec. 2. Market Study. — The Code Authority may undertake the 
study of recommendations to be submitted to the Administrator for 
consideration relative to gradations of factory-shipment price rates 
for the various Trade-Factors which study shall have due regard 
to the functions performed and services rendered by the Trade- 
Factors and to differences in the cost thereof. 

Sec. 3. Gradation of product values. — (1) Under a plan subject 
to the approval of the Administrator, the Institute shall formulate 
and establish indexes of general relation values of sizes and/or 
types and weights of various classes or kinds of products of the 
Industry, and when any such index has been so established each 
member of the Industry Avho is a Producer of the products for which 
each such index has been established, shall publisn and employ List 
Prices reflecting the index value with the least practicable delay. 

(2) If any action taken by the Institute under this Section 3 shall 
work any hardshij) on any member of the Industry who is the pro- 
ducer of a product covered by any such index, such member of the 
Industry may appear to the Administrator for relief. 

Sec. 4:. Quotation policy. — (1) Each quotation shall define terms 
and conditions of sale. 

(2) Each quotation shall be a firm proposal subject to revision only 
to correct errors; or, when permissible under conditions specified 
therein, to adjust to reflect changes in published prices. 



38 

(3) No member of the Industry shall quote a lump-sum price on 
any schedule of products of this Industry which does not itemize, or 
which is lower than, the sum of such member's regular unit selling 
prices of the articles comprising the schedule; and, when quoting a 
combined bid including purchased materials, no member of the Indus- 
try shall quote prices for such purchased material less than the 
published prices of the manufacturer thereof. 

From time to time the Code Authority, subject to the approval of 
the Administrator, may classify articles that are to be treated as 
units and/or groups of units within the meaning of this paragraph. 

(4) No member of the Industry shall be permitted to revise any 
quotation on products of this Industry merely for the purpose of 

matching " or underquoting prices previously quoted by a 
competitor. 

(5) New schedules of prices shall be applicable to all noncontract 
business placed beginning as of the effective date thereof, the date 
of the placing of business by mail to be determined by the postmark. 

(6) No member of the Industry shall give advance notice to the 
trade of an intention to file revised prices on his products. 

(7) No member of the Industry shall predate any quotation nor 
accept any predated order or other contract. 

Sec. 5. Credit policy.— Credit privileges shall be restricted to those 
whose moral ancl financial integrity may be reasonably well estab- 
lished. The purpose of this broad rule is to make it incumbent upon 
each member of the Industry to exercise due diligence and sound 
judgment in earnest effort to avoid action relating to the granting 
of credit privileges which might introduce instability into the market. 

Sec. 6. Terms of fcuyrivent. — (1) Invoices shall bear the date on 
which delivery is made to the carrier at the point of shipment. Post- 
dating of invoices is forbidden. 

(a) For purposes of simplification the following terms are em- 
ployed in succeeding paragraphs of this Section 6, viz : " Pacific 
Zone " comprising Alaska and the States of Arizona, California, 
Oregon, and Washington ; " Eastern Zone " comprising the District 
of Columbia and the States not included in the Pacific Zone. 

(2) The net due date shall not be later than the last day of the 
first month following date of invoice; except that the net due date 
may be the last day of the second month following date of an invoice 
covering shipment (a) to the Pacific Zone from a member of the 
Industry's plant situated in the Eastern Zone, or (b) to the Eastern 
Zone from a member of the Industry's plant situated in the Pacific 
Zone. Accounts not paid within the allowable net period shall, so 
far as practicable for each one of the members of the Industry, be 
made to bear interest from the net due date at an annual rate of six 
(6) percent unless the legal rate in the State in which the debtor 
is situated is less than six (6) percent, in which event such legal rate 
shall apply. 

(3) No member of the Industry shall give any cash discount at a 
rate exceeding two percent (2% ) , and the period in which it may be 
deducted shall not exceed ten (10) days from date of invoice with the 
following exceptions : 

A. That the period may be extended to thirty (30) days from 
date of invoice covering shipment (a) to the Pacific Zone from a 



39 

member of the Industry's plant situated in the Eastern Zone, or Tb) 
vice versa. 

B. That to purchasers whose requirements necessitate frequent 
billings, the cash discount may be made deductible from remittance 
covering all charges of the first half -month period (i.e., the 1st 
to/and 15th) and from remittance covering all charges of the seccnd 
half-month period (i.e., 16th to/and last day of the month) as 
follows : 

(a) For the first half -month period, when both parties are in the 
Eastern Zone or when both parties are in the Pacific Zone — on the 
25th instant; and when the parties are not in the same zone, on the 
25th proximo. 

(b) For the second half-month period, when both parties are in 
the Eastern Zone, or when both parties are in the Pacific Zone, on 
the 10th proximo ; and when the parties are not in the same Zone — 
on the 10th of the second month following. 

(4) In no instance shall a cash discount be allowed on transactions 
financed through the medium of a trade acceptance or a note. 

(5) The agreement to accept bonds or other securities involved in 
the financing of a project in part or in whole payment for products 
of the Industry is forbidden. 

Sec. 7. Terms of shiprwent. — (1) Each member of the Industry 
shall provide that the purchaser shall assume full responsibility for 
losses or damages created by conditions beyond the control of the 
member of the Industry. In instances where it is required that 
transportation charges be prepaid by the seller, the member of the 
Industry shall provide that such prepayment shall not relieve the 
purchaser from any portion of the purchaser's responsibility as 
therein provided. The member of the Industry, hoM'ever. shall pro- 
vide all reasonable assistance to the purchaser in the preparation of 
justifiable claims. 

(2) Each member of the Industry shall provide that he shall not 
be responsible for delays caused by strikes, fires, or other similar 
causes beyond his control, nor for any delays caused by changes in 
specifications. 

(3) The Code Authority may study the problem of freight allow- 
ance and present recommendations to the Administrator with respect 
thereto. 

(4) From time to time the Code Authority may approve standard 
practices for packing and shipping "American Standard '' pipe fit- 
tings, and upon such approval each member of the Industry shall 
make an extra charge sufficient to defray the extra cost to such mem- 
ber for any special packing and/or shipping requirements of the 
Purchaser. 

Sec. 8. Indeterminate speci-fications. — (1) No member of the In- 
dustry' shall accept any order for or otherwise commit himself to 
deliver products on any other basis than the basis of price subject 
to change upon the filing of revised schedules by such member, except 
in the case of: 

(a) Fully specified orders the execution of which has been delayed 
or which may be delayed through no fault of the purchaser; or 

(b) Orders for products for use in a specific project as provided 
in Section 9, paragi-aph (1) of this Article IV; or 



40 

(c) Orders by original equipment manufacturers for products to 
be used as parts or accessories, for the devices or equipment 
manufactured and sold by such manufacturers. 

Sec. 9. Future delivery coviinit'ments. — (1) A member of the In- 
dustry may commit himself to furnish products of the Industry over 
an extended period, at fixed prices, for use in the construction of a 
particular project, if the character of the project is clearly defined 
and identified, and if the volume of products to be delivered is speci- 
fied within minimum and maximum limits defined in terms of value 
and/or quantity on the basis of anticipated requirements. 

(2) Proposals to furnish products under a prospective contract 
for use in the construction of a given project shall specify a definite 
acceptance date, not later than which the prospective purchaser must 
formally accept the same in order to obtain advantage of the prices 
quoted therein ; except, however, that in the event the member of the 
Industry advances his prices prior to the previously specified accept- 
ance date, he may change the acceptance date to not later than fifteen 
(15) days subsequent to the effective date of his new price.= 

(3) When a member of the Industry has committed himself under 
such contract, he shall immediately register the fact with the Code 
Authority, giving it (a) date and number of the contract; (b) name 
and address and character of the project; (c) name and address 
of the contractor who is to perform the work; (d) name and address 
of the charges; (e) total value and/or quantity, size, and kind of 
products he has contracted to furnish; and (f) discounts and/or 
net prices at which the contract was closed. 

(4) The member of the Industry shall identify each invoice 
appljdng to service against such contract by means of (a) date and 
number of contract; (b) name and address of the project; and (c) 
the pricing therein by means of the term " contract price " when 
net prices are employed, and the term " contract discount " before 
each discount when the billing is done by list price and discount 
or plus percentage. 

Sec. 10. Factory -xLWLTeKouse service. — The Code Authority may 
undertake the study of recommendations to be submitted to the 
Administrator for consideration relative to proper charges, terms, 
and conditions for rendering service out of or through factory-ware- 
houses operated by members of the Industry and for rendering other 
classes of special delivery services which study shall have due regard 
to the cost of services rendered by such factory-warehouse. 

Sec. 11. Consigned stocks. — The Code Authority shall investigate 
problems presented in the elimination of consigned stocks of products 
of the Industry and shall recommend to the members who are parties 
to then existing arrangements with respect to shipments on consign- 
ment, such action in respect thereof as the Code Authority shall deem 
proper and designed to accomplish the termination of all such 
arrangements at as early a date as possible. 

Sec. 12. Distress merchandise. — Surplus stocks or inventories that 
must be converted into cash to meet immediate needs and obsolete 
lines may be sold at such prices as are necessary to move the prod- 
ucts into purchasers' hands; provided, however, that all such surplus 
stocks or inventories and obsolete lines first must be reported to the 
Code Authority and shall be disposed of only subject to the ap- 



41 

proval of the Code Authority and under such rules and regulations 
as the Code Authority may prescribe ; provided further, that appeal 
may be had to the Administrator by a member of the Industry from 
any decision of the Code Authority; provided, further, that if the 
Code Authority does not notify the member of the Industry of its 
decision within ten (10^ days from the receipt of the application, 
such member may appeal to the Administrator. 

Sec. 13. Producing affiliates. — A sale made by any member of the 
Industry through any affiliated producing company of such member 
shall be deemed to be a sale made by such member. 

Sec. 1-i. Unfair trade practices. — (1) After an award has been 
made by a duly authorized authority, there shall be no attempt to 
prevent a contract being made thereunder, nor shall there be any 
attempt to induce a breach of contract between anj' competitor and 
his customer. 

(2) There shall be no (a) disparaging statements made respect- 
ing another member of the Industry s business methods, practices, 
products, or financial integrity ; (b) publication or circulation, by 
advertisement or otherwise, of any false, misleading, or deceptive 
statement concerning the grade, quality, character, or origin of 
products; or (c) misbranding for the purpose or with the effect of 
misleading or deceiving purchasers or prospective purchasers with 
respect to quantit}-, quality, size, grade, or substance of products. 

(3) There shall be no (a) payment or allowance, in the form of 
money or otherwise, of secret rebates, secret refunds, secret credits, 
or unearned discounts; (b) payment of bribes or other forms of ille- 
gitimate inducement, in the form of money or otherwise, to influence 
the specification, demand, or acceptance of products; (c) any exten- 
sion of services or privileges to certain purchasers not extended to 
all purchasers of the same class, under like terms and conditions ; or 
(d) any agreement to assist any purchaser of products in the sale of 
bonds or other securities in which he may be interested directly or 
indirectly. 

(4) There shall be no substitution or deviation from the specifi- 
cations or furnishing products of the Industry other than those 
described in the quotation. 

Sec. 15. Guaranty on product. — (1) Members of the Industry shall 
place on all articles made by them an identifying mark, such as their 
name or trademark, unless the size of design of the article will not 
permit of their doing so. 

(2) Xo guarantee on product, whether given voluntarily or upon 
request, shall provide for more than (a) freedom from defects in 
material and workmanship under the use and service for which the 
article is recommended by the producer thereof, and (b) the obliga- 
tion to replace or repair any defective part or parts returned to 
his factory. 

(3) A guaranty which may make the producer responsible for con- 
sequential damages and other items of expense which normally can- 
not be anticipated and equitably comprehended in original costs or 
selling prices, creates conditions of unfair competition and therefore 
is forbidden. 



42 

Article V — Administration of Code 

Section 1. (1) Immediately after the approval of this Code by 
the President there shall be constituted a Code Authority consisting 
of not less than eight and not more than eleven members as herein- 
after provided. 

(2) The Directors shall nominate fourteen (14) persons and the 
members of the Code, at a duly called meeting thereof, or by letter 
ballot, shall vote on the persons so nominated and the seven (7) 
persons receiving the greatest number of votes shall be members of 
the Code Authority, who shall serve for such terms as the directors 
shall determine; and the remaining seven (7) persons shall be alter- 
nate members of the Code Authority. 

(3) Members of the Code who are not members of the Institute 
may elect one member of the Code Authority and one alternate by a 
fair method of election approved by the Administrator. 

(4) The Administrator, in his discretion, may appoint not more 
than three additional members without vote to represent the Ad- 
ministrator or such grou^JS or interests as may be agreed upon. 

(5) 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. 

(6) No inequitable restriction on membership in the Institute shall 
be imposed at any time, 

(7) Nothing contained in this Code shall constitute the members 
of the Code Authority partners for any purpose. Nor shall any 
provisions of this Code be considered to render any member of the 
Code Authority liable in any manner to anyone for any act of any 
other member, officer, agent, or employee of the Code Authority. 
Nor shall any provisions of this Code be considered to render any 
member of the Code Authority, exercising reasonable diligence in the 
conduct of his duties hereunder, liable to anyone for any action or 
omission to act under this Code, except for his own willful mis- 
feasance or nonfeasance. 

Sec. 2. (1) The Code Authority is hereby designated as the agency 
to cooperate with the Administrator in administering, supervising, 
and promoting observance of the provisions of this Code, subject 
to the right of the Administrator upon review to approve or dis- 
approve any action taken by the Code Authority. 

(2) The Code Authority may adopt bylaws and rules and regula- 
tions for its procedure and for the administration and enforcement 
of the Code. 

(3) The Code Authority shall have the powers and duties set 
forth in this Code. 

Sec. 3. The Code Authority may (a) investigate on its own initia- 
tive, or on complaint, the operation of this Code and any violation 
thereof by anyone; (b) hold hearings and grant to all persons 
interested in the subject matter of any investigation or complaint 



43 

a fair and reasonable opportunity to be heard ; (c) make findings 
of fact and state its conclusions as to whether or not there has been 
any violation of any provision of this Code; and (d) take such steps 
within its authority as it may deem necessary or ad\'isable in 
connection therewith. 

Sec. 4. Xo member of the Code Authority shall participate as 
a member of such Code Authority in any proceedings m which he is 
interested by virtue of any connection with the complainant or re- 
spondent and in the event of any such disqualification the remaining 
members of the Code Authority shall certify such disqualification, 
together with the reasons therefor to the Chairman of the Code 
Authority who shall promptlv desi^iiate one of the duly elected 
alternates to act in the place of the disqualified member of the Code 
Authority. 

Sec. 5. The Code Authority may exercise its functions through 
Buch agents or committees as it may select, to operate under its 
supervision. 

Sec. 6. (1) The Code Authority shall have power to require from 
all members of the Industry such information and reports as may be 
pertinent to the administration of this Code, including, but without 
limitation, reports on the following subjects: 

Emploijment. — (A) Separations during previous month: (a) 
number of quits; (b) number of discharges; (c) number of layoffs; 
and (d) total number of separations. 

(B) Number of Accessions during previous month (including 
both first employment and rehires). 

(C) Number of factory workers on Pay Rolls: (a) Number on 
pay roll at beginning of previous month. 

(D^ Factory Pay-roll Analvsis (for previous month to end of 
last lull calendar week): (a) Wage rate, classes; (b) number em- 
ploj^d in each rate-class; and (c) total hours worked in each rate- 
class. 

Distribution. — A. Total of shipments billed during previous month 
(to be reported by tonnage, piece or dollar value, whichever is the 
most practicable method of reporting). 

(2) In addition to information required to be submitted to the 
Code Authority, there shall be furnished to Government Agencies 
such statistical information as the Administrator may deem neces- 
sary for the purpose recited in Section 3 (a) of the Act. 

Sec. 7. (1) If an appeal is desired from a determination of the 
Code Authority to a Board of Appeal constituted in accordance 
with this section, notice shall be given of such intention to the Code 
Authority within five (5) days after receipt of notice of the de- 
termination of the Code Authority; providedj however, that the 
determination shall be controlling until a decision on the appeal 
has been rendered by the Board of Appeal. 

(2) The Code Authority shall designate its appointee, who shall 
be ready to proceed with the appeal within five (5) days after notice 
has been received by it. 

(3) A Board of Appeal shall be composed of three (3) members; 
one chosen by the Code Authority, one chosen by the appellant, the 
third to be chosen by them. If the first two chosen fail to agree in 
their choice of the third member, then the third shall be appointed 
by the Administrator. 



44 

(4) Such Board of Appeal shall have authority to hear appeals as 
provided in Paragraph (1) of this Section 7^ and shall affirm or 
reverse the determination of the Code Authority in the case under 
appeal. 

(5) No provision of this Section 7 shall deny to any member of 
the Code or to any party in any proceeding the right to appeal to the 
Administrator nor prevent, at any time, direct appeal to him from 
any determination of the Code Authority. The Code Authority 
may, if it chooses, invoke the procedure provided for in this section. 

Article VI — Participation 

Section 1. (1) Each member of the Code shall be entitled to par- 
ticipate in and share the benefits of the activities of the Code 
Authority. 

(2) Each member of the Code shall pay his pro rata share of the 
expenses of administration of the Code either by becoming a member 
of the Institute or by payment of an equitable pro rata share of the 
expense of the administration of the Code, such pro rata share to 
be determined by the Code Authority, subject to the approval of the 
Administrator, on the basis of the dollar value of net sales. 

Article VII — Amendment of Code 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of Section 10 (b) of the National Industrial Kecovery 
Act, from time to time to cancel or modify any order, approval, 
license, rule, or regulation issued under Title I of said Act, and 
specifically to the right of the President to cancel or modify his 
approval of this Code or any conditions imposed by him upon his 
approval thereof. 

Sec. 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 contem- 
plated that from time to time supplementary provisions to this Code 
or additional Codes will be submitted for the approval of the Presi- 
dent to prevent unfair competition in price and other unfair and 
destructive competitive practices and to effectuate the other purposes 
and policies of Title I of the National Industrial Recovery Act con- 
sistent with the provisions hereof. 

Sec. 3. (1) Any member of the Code may propose an amendment 
thereto; when any duly proposed amendment shall have been ap- 
proved by vote of a majority of the Code Authority, it shall be sub- 
mitted to a joint meeting of all said members, and, when approved by 
vote of a majority of such members, such amendment shall be sub- 
mitted by the Code Authority to the President of the United States 
for approval. 

(2) The proposed amendment shall be set forth in the notice of the 
meeting at which the amendment is to be considered and acted upon. 



45 

Article VIII — Monopolim 

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

Article IX — E^^ECTI^•E Date 

Section 1. This Code shall be effective five (5) days after the 
approval thereof by the President of the United States, and it shall 
continue in force and effect until June 16, 1935, or as provided in 
Section 2 (c) of Title I of the Act, until such earlier date as that on 
which the President of the United States shall by proclamation, or 
the Congress of the United States shall by joint resolution, declare 
that the emergency recognized by Section 1, Title I of the Act, has 
ended. 

Approved Code No. 153. 
Registry No. 1335-1-08. 

o 



Approved Code No. 154 
CODE OF FAIR COMPETITION 

FOR THE 

METAL TANK INDUSTRY 

As Approved on December 15, 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 Metal Tank Industry, and hearings 
having been held thereon and the Administrator having rendered his 
report containing an analysis of the said code of fair competition 
together with his recommendations and findings with respect thereto, 
and the Administrator having found that the said code of fair com- 
petition complies in all respects with the pertinent provisions of 
title I of said act and that the requirements of clauses (1) and (2) of 
subsection (a) of section 3 of the said act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by title I 
of the National Industrial Recovery Act, approved June 16, 1933, 
and otherwise, do adopt and approve the report 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 dministrator. 

The White House, 

December 15, 1933. 

2(5708° 244-154 33 (47) 



Decembek 4, 1933. 



The President. 

The Whtte House. 
Sir: This is a report on the Code of Fair Competition for the 
Metal Tank Industry in the United States, the hearing having been 
conducted in Washington on October 6, 1933, in accordance with 
the provisions of the National Industrial Recovery Act. 

PROVISIONS FOR HOURS AND WAGES 

Factory employees will be limited to 40 hours per week and 8 
hours per day, except in emergencies which cannot be met by the 
employment of additional men, when working time may be in- 
creased. Time and one half will be paid to all hourly rated em- 
ployees working over 8 hours in any one day or 40 hours in any 
one week. Preparation, care and maintenance employees, stock and 
shipping clerks, and delivery men will have a 10 per cent tolerance, 
but are limited to 44 hours per week in any 6 weeks in any 6 months. 

The limitation in hours will not apply to managerial, executive, 
or supervisory employees receiving more than $35.00 per week, nor 
to outside service and maintenance men, traveling salesmen, and 
watchmen, nor to those engaged in emergency maintenance or re- 
pair work, this latter class being paid time and one half for all 
hours over 8 per day or 40 per week. 

Accounting, clerical, service, and sales employees will be limited to 
40 hours per week on a monthly average and 48 hours in any one 
week. This class of employees will be paid at the rate of not less 
than $15.00 per week. No one in this group will have his salary 
reduced on account of any reduction in hours. Eighty per cent of 
the above minimum rates will be paid to office boys and girls and 
messengers. 

Factory emplajj-ees will receive a minimum of not less than 40 
cents per hour, except in specified Southern States in which the 
minimum will be not less than 34 cents per hour. Equitable adjust- 
ment will be made of all rates above the minimum and no rates 
will be decreased. Eighty percent of the minimum rates is pro- 
vided for apprentices, learners, and superannuated and disabled 
employees. There will be no distinction in rates between male and 
female employees engaged in the same work. 

CHILD LABOR 

The minimum age for employees will be 16 years, except in 
hazardous occupations, where the minimum will be 18 years. The 
members of the Industry will submit a list of hazardous occupa- 
tions to the Code Authority within 30 days after the effective date of 
the Code. 

(48) 



49 

ECMDNOMIC EFFECTT OF CODE 

The 40-hour limitation for factory workers results in an increase 
in employment of approximately 20 percent from the number em- 
ployed prior to the President's Reemployment Agreement when the 
hours averaged 56 per week. Employees in 1932 numbered 6,300, a 
49 percent drop since 1929. Since the President's Reemployment 
Agreement was adopted in June, employment has been increased to 
8,000 persons. 

The minimum wage rate of not less than 40 cents in the Northern 
States and 34 cents in the Southern section of the Industry will 
increase the general wage average about 30 percent. 

There are 155 companies in the Industry, GO of these being mem- 
bers of the National Steel Tank Association and having 83 percent 
of the volume of business, which amounted to a total of $25,300,000 
in 1932. The Industry manufactures standardized metal tanks, 
which are assembled in the shop for use in water service, petroleum, 
and other industries. Sales in 1932 were only 28 percent of the 
capacity of the 155 companies, but with any increase in the con- 
struction industries reemployment should be rapid in this industry. 

FINDINGS 

The Administrator finds that : 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including, "Without limita- 
tion, subsection (a) of Section 7 and subsection (b) of Section 10 
thereof ; and that 

(b) The applicant group imposes no inequitable restrictions on 
admission to membership tnerein and is truly representative of the 
Metal Tank 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 

METAL TANK 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 Metal Tank Industry, and upon approval 
by the President shall be the standard of fair competition for this 
Industry. 

Article II — Definitions 

The following words are used in this Code with the meanings set 
forth : 

" Industry " shall include the manufacture of standardized steel 
or other metal tanks and containers when shipped in a finished con- 
dition or when sold from a published price list, including, but not 
limited to, the items as generally set forth in Schedule A, but not 
including the manufacture of such products when made by a pro- 
ducer of other equipment as part of his own products or as replace- 
ment parts and not for sale as separate tanks and containers for 
other usage, 

"Association" shall mean National Steel Tank Association. 

" Employee " — any person engaged in any phase of the Industry 
in any capacity, receiving compensation for his services, irrespec- 
tive of the method or nature of payment of such compensation. 

" Employer " — anyone by whom such employee is compensated or 
employed. 

" Member of the Industry " — anyone engaged in the Industry as 
above defined either as an employer or on his own behalf. 

"Apprentice " — a person (usually a minor) bound by indenture 
to serve an emploj^er for a stated term at a predetermined wage 
for the period of indenture in order to learn a trade, art, or 
profession. 

" President ", "Act ", and "Administrator " — respectively, the 
President of the United States, the National Industrial Recovery 
Act, and the Administrator of Title I of said Act. 

"Administration " — the National Recovery Administration. 

Article III — Hours 

(a) No employee shall be permitted to work in excess of eight 
(8) hours per day, which eight (8) hours shall be worked in any 

(HO) 



51 

Eeriod of nine (9) consecutive hours, or in excess of forty (40) 
ours per week, except 

(b) Firemen, engineers, and electricians engaged in the prepara- 
tion, care, and maintenance of plant, machinery, and production 
facilities, and stock and shipping clerks, and delivery employees may 
be permitted to work not in excess of 8.8 hours per day; provided, 
however, that no such employees described in this paragraph (b) 
shall be permitted to work in excess of forty-four (44) hours per 
week in any six (6) weeks in any six (6) months' period, 

(c) Watchmen may be permitted to work not in excess of fifty-six 
(56) hours per week. 

(d) Accounting, clerical, service, sales, and all other office em- 
ployees may be permitted to work not in excess of forty (40) hours 
per week on a monthly average, and not in excess of forty-eight (48) 
hours in any one week. 

(e) Any employee whose hours of work are prescribed under para- 
graph (a) or (b) hereof may, in cases of emergency production or 
repair work that cannot be met by the employment or additional em- 
ployees, or in order to protect life or property, be permitted to work 
such number of hours as may be required. 

(f ) Any employee whose hours of work are prescribed under para- 
graph (a) or (b) hereof shall be paid at the rate of not less than 
one and one half times his regular rate of pay for all hours worked 
by such employee in excess oi the hours specified in paragraph (a) 
or (b), respectively. 

(g) No employer shall knowingly permit any employee to work 
for any time which, when totaled with that already performed with 
another employer or employers in this Industry, exceeds the maxi- 
mum permitted herein. 

(h) Nothing in this Article III shall apply to or affect the em- 
ployment of any executive, administrative, technical, or supervisory 
employee regularly receiving more than $35.00 per week, or any 
traveling or commission salesman. 

Article IV — Wages 

(a) No employer shall pay any employee, except as hereinafter 
provided, less than at the rate of forty (40) cents per hour; pro- 
vided, however, that any employer in the South may pay any em- 
ployee not less than at the rate of thirty-four (34) cents per hour. 
The South, for the purposes of this Article IV, shall include all the 
United States located South of Maryland, West Virginia, and 
Kentucky and east of the Mississippi River. 

(b) No employer shall pay any old or partially disabled employee 
or watchman less than at the rate of eighty (80) percent of the rate 
prescribed in paragraph (a) hereof; provided, however, that no 
employer shall employ any such employees and watchmen in an 
aggregate number in excess of five (5) percent of the total number 
of employees of such employer; provided, further, however, that 
any employer may employ not less than two (2) such employees or 
watchmen. 

(c) No employer shall pay any apprentice or learner less than at 
the rate of eighty (80) percent of the rate prescribed in paragraph 



52 

(a) hereof; provided, however, that no employer shall pay any ap- 
prentice or learner less than at the rate prescribed in paragraph 
(a) hereof after such apprentice or learner shall have been employed 
in the Industry in excess of three (3) months; provided, further, 
that no (jmployer shall employ any such apprentices and learners 
paid less than at the rate prescribed in paragraph (a) hereof in an 
aggregate number in excess of five (6) percent of the total number 
of employees employed by such employer upon production work. 

(d) No employer shall pa}'' any accounting, clerical, service, sales, 
or other office employee less than at the rate of $15.00 per week; 
provided, however, that office boj'^s and girls may be paid not less 
than at the rate of eighty (80) percent of the said rate of $15.00 
per week ; provided further, however, that no employer shall employ 
such office boys and girls' paid less than at the said rate of $15.00 
per week in an aggregate number in excess of five (5) percent of the 
total number of accounting, clerical, service, sales, or other office 
employees employed by such employer. 

(e) The wage differentials for all operations and occupations shall 
be equitably readjusted, provided that in no case shall any such 
differential be decreased. Each employer shall report all such read- 
justments made by him to the Code Authority within thirty (80) 
days following the effective date of this Code. 

(f) No member of the Industry shall subcontract with any other 
person for the fabrication of any product of the Industry except on 
condition that such other person shall comply with Articles III, IV, 
and V hereof for the purposes of the contract. 

(g) No member of the Industry shall contract with any employe© 
for the fabrication of any product of the Industry under anv condi- 
tion by which such employee may engage other persons to labricate 
such product, or may become a subcontractor for the purpose of such 
fabrication. 

(h) No employee of the classes mentioned in paragraph (d) of 
Article III who is now receiving compensation at a rate in excess 
of the minimum provided shall have his compensation reduced on 
account of any reduction in the weekly hours of employment to con- 
form with the requirements of this Code. 

(i) Where an employee's weekly earnings on piecework are less 
than his weekly earnings at the established hourly rate for his class, 
such employee shall be paid an amomit not less than his weekly earn- 
ings at the established hourly rate for his class. 

(j) No distinction in rates shall be made between male and female 
employees where substantially the same class of work is performed, 
regardless of whether compensation is calculated on an hourly, 
weekly , monthly, piecework, or other basis. 

(k) No member of the Industry shall reclassify emplovees or 
duties of occupations performed by employees so as to defeat the 
purposes of the Act. 

(1) Nothing in this Article IV shall apply to or affect any outside 
salesman compensated on a commission basis. 

Abticle V — Child Labor 

No person under sixteen (16) ^ears of age shall be employed in 
this Industry, nor anyone under eighteen (18) years of age at opera- 



53 

tions hazardous in nature or detrimental to health. In any State 
an employer shall be deemed to have complied with this provision 
if he shall have on file a certificate or permit duly issued by th.Q 
Authority in such State emjDOwered to issue employment or age 
certificates or permit showing that the employee is of the required 
age. 

Each member of the Industry shall submit to the Code Authority 
within thirty (30) days of the effective date of this Code a list of 
hazardous occupations. 

Akticle VI — Administration 

1. To further effectuate the policies of the Act, a Code Authority 
is hereby set up for the administration of this Code. 

(a) The Code Authority shall consist of seven (7) representatives 
of the Association (no two of whom shall represent the same member 
of the Association), two (2) representatives of nonmembers of the 
Association if the nonmembers so desire, and one or more appointees 
of the Administrator if he so desires. Such appointee or appointee^ 
of the Administrator shall have no vote. The representatives of 
the Association shall be elected by members of the Association, each 
member to have equal vote. The representative or representatives 
of the nonmembers shall be elected in like manner by the nonmem- 
bers. The Code Authority shall complete its own organization by 
the election of officers and appointment of agents, subject to the 
approval of the Administrator. The members representing the As- 
sociation will, insofar as possible, be truly representative of the 
various sections of the country and of the various products of the 
Industry. The members representing the Association will be elected 
at the meeting of the Association to be called and held promptly after 
the approval of this Code by the President, and thereafter at each 
annual meeting thereof. 

(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 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, he may require an 
appropriate modification m the method of selection of the Code 
Authority. 

(c^ Any member of the Industry is eligible for membership in 
the Association and there shall be no inequitable restrictions on such 
membership. Any member of the Industry may participate in the 
preparatio'h and any revision of and additions or supplements to 
this Code by assuming his share of the responsibility of administer- 
ing it and paying his proper prorata share of the cost of creating 
and administering it, either by becoming a member of the Associa- 
tion or by paying nis proper share of the costs to the Code Authority. 
There shall De no initiation fee for members of the Industry who 
do not become members of the Association. 

2. The Code Authority shall have the following d.nties and powers 
to the extent permitted by the Act, subject to the right of the Ad- 
ministrator, on review, to approve or disapprove any action taken 
by the Code Authority. 



54 

(a) To collect from members of the Industry all data, reports, and 
statistics when and as required by the President and/or the Adminis- 
trator and/or their agent or agents and/or the Code Authority. Such 
information shall be confidential. Each such member shall send his 
data signed by him or his proper agent to a Neutral Agency desig- 
nated by the Code Authority, in a plain envelope contained in an 
envelope addressed to the Neutral Agency. This Neutral Agency 
shall assemble all such data and present to the Code Authority only 
the combined totals. Each such member shall retain copies of his 
own data to be sent direct by him to the Administrator, if required 
by the latter. Reports submitted by the Code Authority to the Presi- 
dent and/or the Administrator shall be in the form prescribed and/or 
approved by him. 

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

(c) To receive complaints of violations of this Code, make investi- 
gations thereof, provide hearings thereon and attempt to adjust such 
complaints, and bring to the attention of the Administrator for pros- 
ecution, recommendations, and information relative to unadjusted 
complaints. 

(d) To coordinate the administration of this Code with such 
Codes, if any, as may be adopted by any subdivision of this Industry, 
or any related Industry, with a view to providing joint and har- 
monious action on all matters of common interest, all with the ap- 
proval of the Administrator. 

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

(f) To make rules and regulations necessary for the administra- 
tion of this Code, subject to the right of any affected person to ap- 
peal to the Administrator. 

(g) To establish uniform specifications for the types and sizes of 
the products of the Industry. When such uniform specifications 
have been prepared and published to the Industry, no member of the 
Industry shall knowingly sell or offer to sell any product of the 
Industry which does not conform to such uniform specifications, ex- 
cept as provided in paragraph (n) of Article VII. The Adminis- 
trator shall have the right, upon review, to disapprove any such 
specifications. 

(h) In addition to information required to be submitted to the 
Code Authority there shall be furnished to Government agencies 
such statistical information as the Administrator may deem neces- 
sary for the purpose recited in Section 3 (a) of the Act. 

Article VII — Unfair Practices 

Section 1. For all purposes of this Code the following acts shall 
constitute unfair practices and each such act shall be a violation of 
this Code. 



55 

(a^ Inducing or attempting to induce a breach of contract to 
whicn a member of the Industry is a party. 

(b) Making false or misleading statements or descriptions, false 
advertising, or misbranding products. 

(c) Disseminating, publisning, or circulating any false or mis- 
leading information relative to any product or price for any prod- 
uct of any member of the Industry, or to the credit standing or abil- 
ity 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, having the tendency and capacity 
to mislead or deceive purchasers or prospective purchasers and/or 
to affect injuriously the business of competitors. 

(d) For the purpose of inducing or influencing a sale, making or 
offering to any purchaser or prospective purchaser of any product, or 
to any oiBcer, employee, agent, or representative of any such pur- 
chaser or prospective purchaser, any bribe, gratuity, gift, or other 
payment or remuneration, directly or indirecuy. 

(e) For the purpose of inducing or influencing a sale, directly 
or indirectly, and lavishly or excessively entertaining purchasers or 
prospective purchasers of the products of the Industry. 

(f) For the purpose of inducing or influencing a sale, paying or 
offering to pay specific advertising costs of any purchaser not of- 
fered to all purchasers or prospective purchasers under like terms 
and conditions. 

(g) Obtaining or endeavoring to obtain business by threats or 
coercion. 

(h) Selling or offering to sell shopworn, obsolete, or second-hand 
products of the Industry without filing description, prices, and terms 
with the Code Authority before sale thereof, and securing approval 
from the Code Authority for such sale or offer to sell. If and when 
such offer to sell is approved, the Code Authority shall promptly 
notify all competitive members of the Industry of the description, 
prices, and terms of such proposed offers so filed. 

(i) Selling or offering to sell any products of the Industry made 
from any but new material, it being the intention to prohibit the sale 
or offer of sale of any products of the Industry made from steel or 
other material which has theretofore been in use for any purpose 
whatsoever, or which has not been purchased by the member of the 
Industry from a manufacturer or seller as new material. 

(j) Using seconds or other than first-grade materials in the manu- 
facture of any products of the Industry without clearly and con- 
spicuously stenciling such products " Made from seconds " and unless 
they are described, advertised, sold, and invoiced as such without any 
form of guarantee as to service or length of life. 

(k) Selling or offering to sell, billing, or charging for a combina- 
tion or assembly of regularly listed units, including or excluding 
installation, without listing and pricing each such unit in the quota- 
tation and invoice. 

(1) Selling or offering to sell, billing, or charging for any sale 
on a quantity discount basis unless the quantity is definitely speci- 
fied in the order and is to be shipped, billed, and charged within 
ninety (90) daj'S and paid for on regular terms. 



56 

(m) For the purpose of inducing a sale, buying, or offering to 
buy, directly or indirectly, from purchasers or prospective pur- 
chasers of the product of the Industry, capital stock, goods, wares, 
and/or merchandise. 

(n) Selling or offering to sell on nonstandard specifications with- 
out first clearly setting forth in writing to the Cfode Authority all 
deviations from standard specifications. 

(o) Guaranteeing against advances and declines in prices of the 
products of the Industry, and the giving of notice to a purchaser or 
prospective purchaser of price changes in advance of such notice to 
the Code Authority, as provided in paragraph (a) of Article VIII. 

(p) Making or offering to make contracts with purchasers or 
prospective purchasers which provide for price reductions or rebates 
on the basis of combining separate orders. 

(q) Consigning or offering to consign products of the Industry to 
be paid for as sold. 

(r) Accepting or offering to accept second-hand products of the 
Industry as payment, in whole or in part, for products of the 
Industry. 

(s) Changing quotations, except to adjust such quotations to 
changes in specifications or to correct bona fide errors, in order 
to meet or better competitive prices. 

(t) Storing of products of the Industry on the property of any 
user or purchaser or prospective purchaser thereof. 

(u) Selling or offering to sell below individual's cost. The Code 
Authority shall within ninety (90) days from the effective date of 
this code determine a uniform method of cost accounting, subject 
to the approval of the Administrator, to be used by all members of 
the Industry in determining cost. 

(v) Makmg or offering to make to a purchaser or prospective pur- 
chaser a guarantee or warranty more liberal than determined from 
time to time by the Code Authority and approved by the Adminis- 
trator. 

Sec. 2. Any deviation from the standards set forth in this Article 
VII, or i«ny amendments thereto, by any member of the Industry, 
either directly or indirectly through a distributor or anyone else, 
shall be considered an unfair method of competition and a violation 
of this Code by such member. 

Article VIII — Terms and Prices 

(a) Since it has been the generally recognized practice of the 
Industry to sell products 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 member of the Industry shall, 
within five (5) da3''s after the effective date of this Code, file with 
the Code Authority net price lists or price lists and discount sheets 
as the case may be, individually prepared by him, showing his cur- 
rent net prices, or prices and discounts and terms of payment. Suf- 
ficient copies and revisions thereof of printed net price lists or 
price lists with discount sheets and fixed terms of payment shall be 
furnished to the Code Authority for distribution by it to the mem- 



67 

bers of the Industry affected thereby. Revised net price lists or 
price lists with discount sheets may be filed from time to time 
thereafter with the Code Authority by any member of the Industry 
to become effective upon a date specified by such member of the 
Industry, which date shall be not less than ten (10) days after the 
filing 01 such revised prices at the office of the Code Authority, and 
copies thereof, with notice of the effective date specified, shall be 
immediately sent to all known members of the Industry affected 
thereby, who may file, if they so desire, revisions of their net price 
lists or price lists witn discount sheets, which, if filed not less than 
five (6) days previous to such effective date, shall take effect upon 
the date wnen the revised net price lists or price lists with dis- 
count sheets first filed shall go into effect. 

(b) No member of the Industry shall sell any product of the In- 
dustry at prices, discounts, or terms of payment different from the 
schedule of such member on file with the Code Authority as above 
provided. 

(c) The operation of the foregoing provisions in regard to price 
lists shall at all times be subject to the approval of the Administrator 
and, if it be the belief of the Code Authority that any net price lists 
or price lists with discount sheets and fixed terms of payment sub- 
mitted will represent sales below the cost of the member submitting 
same, the Code Authority shall conduct an investigation up to the 
limit of its power under the Act, to determine whether any sales in 
accordance with such submitted price lists will constitute a violation 
of paragraph (u) of Article VII forbidding sales below cost. If it 
is determined by the Code Authority that any such sale will constitute 
a violation of said paragraph (u) of Article VII, the Code Authority 
shall without any delay report said member to the proper authorities 
for prosecution to the full extent provided by the Act. 

Article IX — General 

(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 or employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection ; 

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

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

(d) 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 Act, from time to time to cancel 
or modify any order, approval, license, rule, or regulation issued 
under Title I of said Act and specifically, but without limitations, 
to the right of the President to cancel or modify his approval of this 
Code or any conditions imposed by him upon his approval thereof. 



58 

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

(f) Wliere the costs of executing contracts entered into in the 
Industry are increased as a result of the enactment of the Act and 
by the provisions of this Code, or where any contracts entered into 
by an employer subject to this Code, are inconsistent with the pro- 
visions thereof, it is equitable and promotive of the purposes of the 
Act that appropriate adjustments of such contracts be arrived at 
by arbitral proceedings or otherwise, and with the assistance of 
the Code Authority members of the Industry should make such 
adjustments, but not in those cases involving the same general trans- 
action or set of transactions where similar appropriate adjustments 
are not made with the members of the Industry. Further, that 
where the joerformance of orders accepted prior to the effective date 
of this Code is delayed or prolonged as a result of the operation 
of provisions of this Code, appropriate additional time should be 
allowed for the completion of such orders. 

(g) Such of the provisions of this Code as are not required to be 
included therein by the Act may, with the approval of the President, 
be modified or eliminated as changes in the circumstances or ex- 
perience may indicate. It is contemplated that from time to time 
supplementary provisions to this Code or additional codes will be 
submitted for the approval of the President to prevent unfair com- 
petition in price and other unfair and destructive competitive prac- 
tices and to effectuate the other purposes and policies of Title I of 
the Act consistent with the provisions thereof. 

(h) No provision in this Code shall be interpreted or applied in 
such manner as to : 

Promote monopolies or monopolistic practices ; 
Permit or encourage unfair competition ; 
'3) Eliminate or oppress small enterprise; or 
(4) Discriminate against small enterprises, 
(i) If any employer in this Industry is also an employer in any 
other Industry, the provisions of this Code shall apply to and affect 
only that part of the business of such employer which is a part of the 
Industry coA^ered by this Code. 

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

Article X — Effecttve Date 

This Code shall become effective ten (10^ days after the date of 
its approval by the President and shall apply to all persons engaged 
In the Industry. 

Approved Code No. 154. 
Registry ^o. 1136-01. 



[I] 



SCHEDULE A 

Class 1. — BuUc Storage Tanks, Horizontal and Vertical, for petroleum prod- 
ucts and other liquids to be used for pressures not to exceed fifty (50) pounds 
per square inch, including steel supports, ladders, and walkways for same. 
Underground Storage Tanks for petroleum products and other liquids of the 
type used for Filling Station and domestic purposes. Tractor Tender and 
Skid Tanks and other tanks for petroleum products and other liquids. 

Glass 2. — Hot-Walter Storage Tanks and Hydro-Pneumatic Tanks, 120 gallons 
and over. 

Class 3. — Air Receiver Tanks. 

Class 4- — Septic Tanks and Basement Storage Tanks aud/or supports for 
fuel oil. 

Class 5. — Truck and Trailer Tanks. 

(59) 

o 



Approved Code No. 155 
CODE OF FAIR COMPETITION 

FOR THE 

OXY-ACETYLENE INDUSTRY 

As Approved on December 15, 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 Oxy-Acetylene Industry, and hearings 
having been held thereon and the Administrator having rendered 
his report containing an analysis of the said code of fair competition, 
together with his recommendations and findings with respect thereto, 
and the Administrator having found that the said code of fair 
competition complies in all respects with the pertinent provisions 
of title I of said act and that the requirements of clauses (1) and 
(2) of subsection (a) of section 3 of the said act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by title I 
of the National Industrial Recovery Act, approved June 16, 1933, 
and otherwise, do adopt and approve the report, recommendations, 
and findings of the Administrator and do order that the said code 
of fair competition, excepting, however, section 4 of article VIII 
be, and it is hereby, approved, subject to the following conditions: 

(1) That the aforesaid section 4 of article VIII be, and it is 
hereb}', eliminated. 

FRANKLIN D. ROOSEVELT. 
Approval recommended : 
Hugh S. Johnson, 

A dministrator. 
The White House, 

December 15, 1933. 

20G19° 244-155 33 (61) 



November 29, 1933. 
The President, 

Th^ White House. 
Sir : This is the report of the Hearing on the Code of Fair Com- 
petition for the Oxy-Acetylene Industry, conducted in accordance 
with the provisions of the National Industrial Recovery Act. The 
hearing was held in the Mayflower Hotel on October 27, 1933. The 
Code was presented by the National Oxj^gen and Acet3dene Associa- 
tion, which is affiliated with the Industry's technical society. The 
International Acetylene Association. The National Oxygen and 
Acetylene Association was formed on August 9, 1933, in Chicago 
for the purpose of providing a vehicle for properly meeting the 
requirements and purposes outlined by the National Industrial 
Recovery Act. The National Oxygen and Acetylene Association has 
as members 65, out of a total of 80, producers in the Industry. These 
65 producers do more than 95% of the volume of the business. 

THE INDUSTRY 

The Oxy-Acetylene Industry is comparatively new in that the 
adoption of oxy-acetylene welding and cutting in practically every 
field of metal working has been adopted in the last 25 years. The 
main products of the Industry are the gases, oxygen and acetylene, 
which are respectively compressed and dissolved into heavy metal 
cylinders for distribution and the apparatus for the utilization of the 
gases in cutting and welding operations. 

PROVISIONS or THE CODE 

A large percentage of the operations of the Industry in the manu- 
facture of gases are continuous processes which operate 365 days a 
year while a plant is in operation. The Code provides that no 
employee, with certain exceptions, shall work in excess of an average 
of 40 hours per week over a period of 6 weeks and in no event more 
than 48 hours in any one week. This is a considerable improvement 
over the average hours worked per week previously, as is indicated 
by the following: 

In 1929 the aggregate number employed was 10,080. In 1932 the 
aggregate number emploj'ed was 7,271. During the last week of 
July 1933, this Industry reported a total number of employees of 
7,284. Based on actual employment figures for two companies repre- 
senting approximately 75% of the output of the Industry they had, 
after putting the President's Reemployment Agreement into effect, 
a total number employed of 7,471 for the week ending October 14, 
1933, an increase of 23% over June 17, 1933. Based on actual 
pay-roll figures the increase for these two companies was 20.8%. 
It is estimated based on this actual pay-roll data that the employ- 

(62) 



ment of the entire Industry is now about 92% of what it was in 1929. 
This is in spite of the fact that the dolhir volume of the business 
is running currently at only 60% of what it was in the same period 
of 1929 and the physical Volume of the Industry does not exceed 
65% for the same period of 1929. 

Minimum wages are provided for all employees which are either 
essentially at the level of the 1929 rates of wage or substantially 
in excess in certain sections. 

In the Code as submitted there is included in Article VIII a 
paragraph, Section 4, immediately following the collective bargain- 
ing clauses, which is an interpretation of Section 7 (a) of the 
National Industrial Recovery Act. The Code is being submitted 
to you including this paragraph only because the National Oxygen 
and Acetylene Association cannot get an agreement among its mem- 
bers to submit a code which does not contain this paragraph. To 
avoid undue delay, I recommend that 3'ou approve this Code after 
eliminating Section 4 of Article VIII. 

FINDINGS 

I find that: (a) The Code as recommended, eliminating Section 
4 of Article VIII, complies in all respects with the pertinent pro- 
visions of Title I of the Act, including 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 
Oxy-Acetylene 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 will tend 
to effectuate the policy of Title I of the National Industrial Re- 
covery Act. 

It is recomended, therefore, that this Code be approved. 
Respectfully, 

Hugh S. Johnson, 

Ad7iiimstrator. 



CODE OF FAIR COMPETITION 

FOR THE 

OXY-ACETYLENE 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 Oxy-Acetylene Industry, and upon ap- 
proval by the President, shall be the standard of fair competition 
for this industry and shall be binding upon every member thereof. 

Article II — Definitions 

The term " Industry " as used herein includes the manufacture 
of oxygen, calcium carbide, and its derivative acetylene, or substi- 
tutes therefor (such as hydrogen and compressed hydro-carbon 
gases) when utilized for the cutting or welding of metals, cutting 
and welding apparatus designed to use the above-mentioned gases, 
apparatus for the generation of acetylene gas for cutting and welding 
purposes, for the storage or transportation of dissolved acetylene 
gas, or for the utilization of acetylene gas for commercial purposes 
other than welding and cutting, and such other branches and sub- 
divisions thereof, not herein defined, as may from time to time be 
included under the provisions of this Code, and, without limiting 
the generalty of the foregoing, specifically includes compressed gases 
such as oxygen, ethylene, nitrus-oxide, etc., when employed as medi- 
cal gases. 

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

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

The term " member of the Industry " includes anyone engaged in 
the Industry as above defined. 

The term " member of the Code " includes any member of the 
Industry who shall expressly signify assent to this Code. 

The terms " President ", "Act ", and " Administrator " as used 
herein mean, respectively, the President of the United States, the 
National Industrial Recovery Act, and the Administrator of said 
Act. 

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

(64) 



65 
Article III — Hours 

Section 1. On and after the effective date employers in the In- 
dustry shall not operate on a schedule of hours of labor for any of 
their employees (except any person employed as salesman, engineer, 
fireman, loader, truck driver, or watchman, or employed in a mana- 
gerial or executive capacity and receiving more than $35.00 per 
week) in excess of an average of forty (40) hours per week over 
any period of six (6) weeks, or in any event more than forty-eight 
(48) hours in any one week. 

Sec. 2. If anyone employed as engineer, fireman, loader, or truck 
driver shall work more than forty-four (44) hours in any week, 
compensation at the rate of time and one third for such time over 
forty-four (44) hours a week shall be paid to such employee. 

Sec. 3. The maximum hours fixed in Section (1) of this Article 
III shall not apply to employees on emergency maintenance or 
emergency repair work involving breakdowns or protection of life 
or property, but in any such special case time and one third time 
shall be paid for hours worked in excess of the maximum hours 
herein provided. 

Article IV — Wages 

On and after the effective date the minimum wages that shall be 
paid shall be not less than 400 per hour except in the states of 
Louisiana, Florida, Georgia, North Carolina, South Carolina, Ala- 
bama, Oklahoma, Mississippi, Arkansas, Virginia, West Virginia, 
Tennessee, Kentucky, and Texas, in which states the minimum wages 
shall be not less than 350 per hour. This minimum rate shall be 
paid regardless of whether the employee is compensated on the basis 
of a time rate or on a piecework performance. The minimum wages 
for all employees not paid on an hourly basis shall be not less than 
$15.00 per week, except in the above-mentioned fourteen states, where 
they shall be not less than $14.00 per week. The hourly rates of 
wages, including piecework, of employees now being paid in excess 
of the established minimum, shall be equitably adjusted where such 
adjustment has not already been made. Employers shall not re- 
classify employees with the object of defeating the purposes of the 
Act. 

Article V — Child Labor 

No person under 16 years of age shall be employed in this Indus- 
try; no person under 18 years of age shall be employed in a 
dangerous or hazardous occupation. 

Article VI — Administration 

Section 1. The Board of Directors of the National Oxygen and 
Acetylene Association is hereby designated to be the Supervising 
Agency for administering, supervising, and promoting the perform- 
ance of the provisions of this Code for members of the Industry. 

Sec. 2. The National Oxygen and Acetylene Association shall (1) 
impose no inequitable restrictions on membership, and (2) submit 



66 

to the Administrator true copies of its articles of association, bylaws, 
regulations, and any amendments when made thereto, together with 
such other information as to membership, organization, and activi- 
ties as the Administrator may deem necessary to effectuate the pur- 
poses of the Act. 

Sec. 3. In order that the Supervising Agency shall at all times 
be truly representative of the trade 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 Supervising Agency 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 Supervising Agency. 

Sec. 4. The Supervising Agency shall permit to be present at 
any and all of its meetings called for or taking any action with re- 
spect to the operation of the Code, not more than three members to 
be appointed by the President but to have no vote upon any matter 
considered at such meetings of the Supervising Agency. 

Sec. 5. With a view to keeping the President and the Adminis- 
trator informed as to the observance or nonobservance of this Code,, 
and as to whether the Industry is taking appropriate steps to effec- 
tuate the declared policy of the Act, each member of the Industry 
will, at the request of the Supervising Agency, furnish (1) such 
pertinent facts, figures, and records of such member as may be 
necessary for a determination as to whether such member shall be 
complying with the provisions and the spirit of this Code, and 
(2) such other reports and information requisite to the administra- 
tion of this Code as may be called for by the Administrator or the 
Supervising Agency in furtherance of the provisions of this Code.. 

All such information must be furnished, when and as requested by 
the Supervising Agency, to a committee appointed for such purpose 
by a majority of the members of the Supervising Agency. Such 
committee shall not have as a member thereof any person coming 
within the definition in this Code of employer, employee, or member 
of the Industry. All such information on individual company data 
shall be held confidential except that it may be communicated by 
such committee to the Administrator, and except also that the 
Supervising Agency shall have the right to appoint a firm of 
certified public accountants for the purpose of accumulating such 
information and communicating it to such committee. 

Sec. 6. All expenses of the Supervising Agency for the purpose 
of its functions under this Code shall be prorated on an equitable 
basis among the signers of the Code. 

Article VII — Trade Practices 

The following practices constitute unfair methods of competition 
and are prohibited : 

Section 1. Inducing, or attempting to induce, by any means, any 
party to a commercial contract with a member of the Industry to 
violate such contract; or selling to any such party knowingly in 
violation of such contract; 



67 

Sec. 2. Filling of cylinders belonging to another member of the 
Industry, save at the written consent of such member; 

Sec. 3. Failing to charge rental for cylinders, after they shall have 
been retained by customers more than 30 days, for such time in 
excess of 30 days, at rates to be filed by each member of the Industry 
with the Supervising Agency, which rates shall be open to inspection 
by any member of the Industry; or rebating such charge if justly 
made against the customer; 

Sec. 4. Failing to charge for all gases sold (1) an f.o.b. plant or 
warehouse price; (2) a delivery charge to be filecj by each member 
of the Industry with the Supervising Agency which shall be open 
to inspection by any member of the Industry ; 

Sec. 5. Failing to add to the prices charged for products of the 
Industry, whenever such addition may be lawful, any tax assessed 
against the i)roduction or sale of such products by any duly author- 
ized Federal, State, County, or Municipal agency; or rebating such 
charge ; 

Sec. 6. Allowing cash discounts for gases sold; 

Sec. 7. Marking, branding, or labeling products or making state- 
ments regarding products, that may tend to mislead or deceive pur- 
chasers as to the quantity, quality, grade, or substance of such 
products ; 

Sec. 8. The provisions set forth in the foregoing Sections (3), (4), 
and (6) do not apply to medical gases. 

Article VIII — General 

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

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

Sec- 3. Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment aj^proved 
or prescribed by the President. 

Sec. 4. Without in any way attempting to qualify or modify, by 
interpretation, the foregoing requirements of the National Industrial 
Recovery Act, employers in this Industry may exercise their right to 
select, retain, or advance employees on the basis of individual merit, 
without regard to their membership or nonmembership in any 
organization.* 

Sec. 5. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of Subsection (b) of Sec. 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 

• This paragraph deleted per last paragraph of Executive order approving this Code. 



to cancel or modify his approval of this Code or any conditions, 
imposed by him upon his approval thereof. 

Sec. 6. Within each State, this Code shall not supersede any laws 
of such State imposing more stringent requirements regulating the 
age of employees, wages, or hours of work than under this Code. 

Sec. 7. Each employer shall post in conspicuous places full copies, 
of this Code. 

Sec. 8. No provision of this Code shall be so applied as to permit, 
monopolies or monopolistic practices, or to eliminate, oppress, or- 
discriminate against small enterprises. 

Sec. 9. Such of- the provisions of this Code as are not required to. 
be included therein by the Act may, with the approval of the 
President, be modified or eliminated as changes in circumstances or 
experience may indicate. It is contemplated that from time to time 
supplementary provisions to this Code or additional code will be 
submitted for the approval of the President to prevent unfair compe- 
tition in price and other unfair and destructive competitive practices, 
and to effectuate the other purposes and policies of Title I of the Act. 
consistent with the provisions hereof. 

Article IX 

The Code shall continue in effect for a period of ninety days after- 
the effective date thereof, subject, however, to amendment at any 
time as hereinbefore provided, and also subject to the exercise of 
reserved power of the President to cancel or modify his approval 
thereof. The Code shall continue in effect after the expiration of 
said period of ninety days in the absence of such reserved power on 
the part of the President, or in the absence of the exercise by members 
of the Code of the power which they hereby reserve, to terminate the 
Code at any time after the expiration of the said period of ninety 
days. Such cancellation shall be proposed by the Supervising Agency 
by vote of the majority of members thereof at the time in office. The 
proposal to cancel shall then be submitted to all members of the 
Code who shall be given a right to vote thereon. If at least three 
fourths of the votes entitled to be cast by the members of the Code, in 
accordance with the By-Laws of the Association shall be in favor of 
cancellation, the Association shall have the power after service of a 
thirty-day notice on the Administration to terminate said Code. 
When so terminated, all subsequent liabilities and obligations here- 
under shall cease. 

Approved Code No. 155. 
Registry No. 1150-02. 



Approved Code No. 156 

CODE OF FAIR COMPETITION 

FOR THE 

RUBBER MANUFACTURING INDUSTRY 

As Approved on December 15, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 



An application having been duly made, pursuant to and in full 
compliance with 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 Rubber Manufacturing Industry, and 
hearings having been held thereon and the Administrator having 
rendered his report containing an analysis of the said code of fair 
competition, together with his recommendations and findings with 
respect thereto, and the Administrator having found that the said 
code of fair competition complies in all respects with the pertinent 
provisions of title I of said act and that the requirements of clauses 
(1) and (2) of subsection (a) of section 3 of the said act have been 
met: 

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

FRANIO^IN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Adtninistrator. 

The White House, 

December 16^ 1933. 

(69) 

26076°— 244-156 33 



December 6, 1933. 
The President, 

The White House. 

Sir: The proposed Code of Fair Competition for the Rubber 
Manufacturing Industry (except tires) was submitted to the Admin- 
istrator on September 26, 1933, by the Rubber Manufacturers' Asso- 
ciation. The Association states it represents approximately 85% 
of the volume of production and over 50% of the members of the 
Industry. The hearing was conducted in Washington on October 
25, 1933. The Code was revised during the recess of this hearing 
and is submitted in its preseiit form for approval. Every person who 
requested an appearance was properly heard in accordance with 
statutory and regulatory requirements. 

This Code consists of a basic code for the Industry together with 
nine supplementary codes for the following Divisions of the 
Industry : 

Automobile Fabrics, Proofing and Backing Division. 

Rubber Flooring Division. 

Rubber Footwear Division. 

Hard Rubber Division. 

Heel and Sole Division. 

Mechanical Rubber Goods Division. 

Sponge Rubber Division. 

Rubber Sundries Division. 

Rainwear Division. 

Basic Code — Chapter I 

Chapter I of the Code establishes the relationship between the 
Code Authority, the several Divisional Authorities, and the Rubber 
Manufacturers' Association, for the administration of the Code. The 
Chapter includes all mandatory provisions of the Act, together with 
the maximum hours and minimum wages, applicable to the entire 
Industry except the Rainwear Division. It further includes the 
general trade practices which again are applicable to all Divisions. 

DIVISIONAL codes 

The supplementary chapters include the definitions of the several 
Divisions, the composition and basis for the selection of the Di- 
visional Authorities, the trade practices specifically applicable to 
every Division, and the method by which alterations and amend- 
ments may be made to any Divisional Code. 

HOURS OF work 

Under this Code, no employee (with the exceptions below) shall 
work more than 40 hours in any one week nor more than eight hours 
in any one day. Each employee may, however, work not more than 

(70) 



71 

80 hours per year in excess of the maximum but in no case more tha?i 
48 hours per week. For all hours worked in excess of 40 hours per 
week, overtime shall be paid at the rate of time and one third. 

Maintenance crews, engineers, firemen, electricians, shipping crews, 
watchmen, and elevator operators shall not work more than 45 
hours per week, except in emergencies. All time worked in excess 
of 45 hours per week in such cases shall be paid for at the rate of 
time and one third. 

Accounting, clerical, office, service, or sales employees (except 
outside salesmen) receiving $35.00 per week or less, are limited to 
an average of 40 hours a week over a period of one month but in 
no case shall they work more than 48 hours in any one week. Sal- 
aried employees receiving more than $35.00 weekly and outside sales- 
men are not restricted to any maximum hours. 

In the Rainwear Division, factory employees are limited to 40 
hours per week and 8 hours per day. All overtime is expressly pro- 
hibited. The Divisional Authority is required to report to the 
Administrator within ninety days after approval of this Code, as 
to the effect of a 40-hour week on re-employment in that Division. 

WAGES 

This Code provides for a minimum wage of $0.35 per hour. In the 
Rainwear Division, nonmanufacturing employees shall be paid not 
less than $0.35 per hour and manufacturing employees (as defined in 
the Divisional Code) 'shall be paid not less than $0.40 per hour. 
Apprentices may be paid $0.28 per hour during a six weeks' appren- 
ticeship. Such apprentices are limited to five percent of the total 
employees in any one establishment. 

Minimums for salaried employees range from $12.00 per week in 
towns of less than 2,500 population to $15.00 per week in cities over 
500,000. Clerical apprentices, office boys and girls, may be paid not 
less than 80% of these minimums but may not constitute more than 
five percent of the total office employees in any one establishment. 
Provision is made for superannuated and disabled employees; for 
equalization of rates of pay for men and women performing the 
same work; for equitable adjustments of pay schedules of factory 
employees above the minimum, and for the posting of the labor 
provisions of the Code, 

ECONOMIC EFFECT OF CODE 

This Code will affect approximately 400 establishments and some 
60,000 to 70,000 employees. Due to the inadequacy of governmental 
or industry data, the exact number cannot be determined. The fol- 
lowing estimates of the volume of sales and total number of 
employees have been compiled by the Division of Research and 
Planning : 



Value of products.-. 
Number employees. 



1929 



$430, 500, 000 
80, 550 



1932 



$175, 000, 000 
61,360 



Percent 
decrease 



59.4 
36.2 



72 

The Division estimates 73,000 wage earners were employed in the 
Industry in August 1933 and 79,000 in October 1933. For the latter 
month this is approximately the average number employed in 1929. 

The indexes of the United States Bureau of Labor Statistics indi- 
cate that employment and payrolls have increased about 10% from 
August to October, average hours per week have declined, and aver- 
age hourly earnings have increased slightly. It is believed the adop- 
tion of the maximum hours and minimum wages by all members of 
the Industry will tend to further increase employment and average 
hourly earnings. 

FINDINGS 

The Administrator finds that : 

1. This Code complies in all respects with the pertinent phrases 
of Title I of the Act, including but without limitation, Subsection 
(a) of Section 7, and Subsection (b) of Section 10 thereof. 

2. The Kubber Manufacturers' Association, Incorporated, is truly 
representative of the Rubber Manufacturing Industry and its by-laws 
contain no inequitable restrictions on membership. 

3. The Code is not designed to promote monopolies or to eliminate 
or oppress small enterprises and will not operate to discriminate 
against them. The Code will tend to effectuate the policy of Title I 
of the National Industrial Recovery Act. 

It is therefore recommended that this Code be approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOB THE 

RUBBER MANUFACTURING INDUSTRY 

CHAPTER I 

To effect the policies of Title I of the National Industrial Recov- 
ei;y Act. this Code is submitted as a Code of Fair Competition for 
the Ruboer Manufacturing Industry and, upon approval by the Pres- 
ident, its provisions shall be the standards of fair competition for 
this industry, and shall be binding upon every member thereof. 

Article I 

A. DEFINITIONS 

Section 1. The term " Rubber Manufacturing Industry " or " In- 
dustry " as used herein means the manufacture for sale in the con- 
tinental United States (including Alaska) of any rubber product or 
products, expressly excluding, however, all solid and pneumatic tires 
and pneumatic tubes, and tire accessories and/or tire repair ma- 
terials, together with such other rubber products as may be specifi- 
cally covered by another duly approved Code of Fair Competition. 

Sec. 2. The term " Division of the Industry ", as used herein, in- 
cludes the several branches of the Industry which have been or may 
hereafter be established, as herein below provided, as administrative 
units, under the provisions of this Code. The Divisions immedi- 
ately established and defined in Chapters II to X are : 

Automobile Fabrics, Proofing, and Backing Division 

Rubber Flooring Division 

Rubber Footwear Division 

Hard Rubber Division 

Heel and Sole Division 

Mechanical Rubber Goods Division 

Sponge Rubber Division 

Rubber Sundries Division 

Rainwear Division 

Sec. 3. The term " Member of the Industry " includes, but without 
limitation, anv individual, partnership, association, corporation, or 
other form oi enterprise or any subsidiary or affiliate of the same 
engaged in the Industry, either as an employer or on his or its own 
behalf. 

(T3) 



74 

Sec. 4. The term " Member of the Division " includes any member 
of the Industry classified in one of the Divisions of the Industry 
now or hereafter established. 

Sec. 5. Tlie term " Member of the Code " includes any Member of 
the Industry who shall expressly signify assent to this Code. 

Sec. 6. The term " employee ", as used herein, includes any and 
all persons engaged in the Industry, however compensated, except a, 
member of the Industry. 

Sec. T. The term "Association ", as used herein, means the Rubber 
Manufacturers Association, Incorporated, a corporation organized 
under the laws of the State of Connecticut and having its principal 
office at 250 West 57th Street, New York, New York. 

Sec. 8. The term " the President ", as used herein, means the 
President of the United States. 

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

Sec. 10. The term " the Administrator ", as used herein, means the 
Administrator appointed under the Act. 

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

Article II 

A. ADMINISTRATTON AND ORGANIZATION 

Section 1. To further effectuate the policies of the Act a Rubber 
Code Authority (herein referred to as " the Code Authority ") is 
hereby set up for the administration of this Code. 

Sec. 2. The Code Authority shall consist of the Chairmen of the 
several Divisional Code Authorities herein established. The Ad- 
ministrator, in his discretion, may appoint not more than three addi- 
tional members (without A'ote) to represent the Administrator, with- 
out expense to the Industry or Association. No two members, or 
alternates, of the Code Authority shall be affiliated with any single 
member of the Industry. 

(a) 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 prescribe such 
hearings as he may deem proper ; and thereafter if ne 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. 

(b) The General Manager of the Rubber Manufacturers Associa- 
tion shall act as Chairman of the Code Authority, without vote. 

(c) One alternate may be selected from each Division to represent 
the Chairman of that Division on the Code Authority with full 

Eower to vote in the absence of his principal. No alternate shall, 
owever, be affiliated with any member of the Industry already rep- 
resented on the Code Authority. 

(d) Should any matter come before the Code Authority which 
specifically involves acts, conduct, or the interest of a member of the 
Industry with which any member of the Code Authority is asso- 



75 

ciated, or employed, such member of the Code Authority shall be 
disqualified to act in such matter. The designated alternate shall act 
in place of the disqualified member of the Code Authority. 

Sec. 3. The Code Authority shall have the duties and powers 
herein provided subject to the right of the Administrator, on re- 
view, to disapprove any action taken by the Code Authority. 

(a) The Code Authority shall cooperate with the Administrator 
in making investigations as to the fimctioning and observance of 
any provisions of this Code, and report its findings and 
recommendations to the Administrator. 

(b) The Code Authority may study the trade-practice provisions 
incorporated in this Code, and the operation thereof, and may 
make such recommendations as are approved by the Divisions af- 
fected, to the Administrator from time to time, which it considers 
desirable for the modifications or additions thereto. Upon approval 
by the Administrator, after such hearing as he may prescribe, such 
recormnendations shall become a part of this Code and shall have 
full force and effect as provisions hereof. 

(c) The Code Authority may, at the request of a Divisional Au- 
thority, present recommendations to the Administrator, based on 
conditions in the Industry as they may develop from time to time. 
Such recommendations shall be designed to facilitate the operation 
of the provisions of this Code and the policy of the Act. 

(d) The Code Authority may require reports from members of 
the Industry with respect to hours of labor, wages, conditions of 
employment, number of employees, plant capacity, production, 
orders, shipments, inventories, and any other matters pertinent to 
this Code in order that the President may be kept informed with 
respect to the observance and performance of the Code. 

(e) The Code Authority may, at its discretion, set up any or all 
of the following committees, or any other conmiittees, if their exist- 
ence will further effectuate the policies of the Act, viz : 

Accounting 

Complaints and Grievances 
Fair Practices 
Industrial Relations 
Statistical 
Similar committees may likewise be created within the Divisions 
of the Industry by any Divisional Code Authority at its discretion. 

(f) In addition to the Divisions herein established in Article I, 
Section 2, the Code Authority may from time to time establish new 
Divisions of the Industry. Each Division shall have a Divisional 
Authority, selected by the members of said Division, as provided 
herein below in Article III. 

(g) The Code Authority shall coordinate the administration of 
this Code throughout the several Divisions of the Industry. 

Sec. 4. The Association is hereby designated as the agency for 
the collection of statistics, data, reports, and information under 
the Code, provided that no inequitable restrictions upon member- 
ship therein shall at any time be imposed. 

(a) Every member of the Industry shall prepare and file wi^h the 
Association, at such times and in such manner and form as the Code 

26076° 244-156 33 2 



76 

Authority may require, statistics of plant capacity, production, sales, 
orders received, inventories, wage rates, hours of work, and such 
other data or information as the Administrator may from time to 
time require. Such reports and/or records may be either sworn 
■ or unsworn as required. 

(b) In addition to information required to be submitted to the 
Code Authority, every member of the Industry shall furnish directly 
to Governmental agencies such statistical information as the Ad- 
ministrator may deem necessary for the purposes recited in Section 3 
(a) of the National Industrial Recovery Act. 

(c) Except as otherwise provided in the Act all such statistics, 
data, and information filed in accordance with this Article shall be 
confidential, and the reports and records from any member of the 
Industry shall only be revealed to the Administrator or other govern- 
mental authority to the extent necessary for the administration and 
enforcement of the provisions of this Code. 

(d) If the Association shall have reason to believe that any reports 
submitted by a member of the Industry are inaccurate, such reports 
may be verified by a disinterested and impartial agency designated 
by the Code Authorit}^, and for such purpose, such agency shall have 
access to any and all relevant books and records of such member. 

(e) Any refusal or persistent or deliberate neglect by any mem- 
ber of the Industry to file or furnish information required under 
this Article shall constitute an unfair trade practice and a violation 
of this Code. 

Sec. 5. Each member of the Code shall be entitled to participate 
in the activities of the Code Authority and of the proper Divisional 
Authority or Authorities and of the Association in connection with 
the administration of the Code. Each member of the Code shall 
bear an equitable share of the cost of maintenance of the Code 
Authority and of the proper Divisional Authorities and their activi- 
ties, either by becoming a member of the Association or by paying 
to the Association a sum equal to his reasonable share of the expenses 
incurred in the administration of this Code as determined by the 
Code Authority subject to review by the Administrator. 

Article III 

A. DIVISIONAL CODE AUTHORITY 

Section 1. Each Division of the Industry shall establish a Divi- 
sional Code Authority (or Divisional' Authority) to administer this 
Code within such Division, subject to the right of the Administrator, 
on review, to disapprove any action taken by any Divisional 
Authority. 

(a) Each Division shall determine the size and character of its 
Divisional Authority and the basis of representation which shall 
prevail within that Division, subject to the same provision contained 
in Article II-A, Section 2-a. 

(b) Any person or persons appointed under Article II-A, Section 
2, as representatives of the Administrator may likewise represent 
the Administrator on any Divisional Authority. 



77 

(c) No two members or alternates of any Divisional Authority 
shall be affiliated with any single member of the Industry. 

(d) Should any matter come before the Divisional Authority 
which specifically involves acts, conduct, or the interest of a mem- 
ber of the Industry with which any member of the Divisional 
Authority is associated or employed, such member of the Divi- 
sional Authority shall be disqualified to act in such matter. The 
designated alternate shall act in place of the disqualified member 
of the Divisional Authority. 

Sec. 2. The Divisional Authority shall have the following duties 
and powers. Any member of a Division may appeal to the Code 
Authority from any determination of the Divisional Authority. 
The Code Authority, on its own motion, may review any decision 
of any Divisional Authority which directly or indirectly affects 
more than one Division. 

(a) The Divisional Authority shall cooperate with the Code 
Authority in making investigations as to the functioning and ob- 
servance of any provisions of this Code, at its own instance or on 
complaint of any person afTected, and report its findings and 
recommendations to the Code Authority. 

(h) The Divisional Authority shall study the trade-practice pro- 
visions incorporated in this Code applicable to its own Division, 
and the operation thereof, and after approval by the Division, 
shall make such recommendations to the Code Authority, from time 
to time, which it considers desirable for modification or addition 
thereto. Such recommendations shall be submitted to the Admin- 
istrator through the Code Authority accompanied by its own recom- 
mendations. Upon approval by the Administrator after such hear- 
ing as he may prescribe such recommendations shall become a part 
of this Code and have full force and effect as provisions hereof. 

(c) The Divisional Authority shall receive, and so far as pos- 
sible, adjust all complaints in regard to the operation of this Code, 
which involve the members of that Division. 

(d) The Divisional Authority shall coordinate the activities of 
any Divisional Committees designated to facilitate the operation 
of this Code. 

Sec. 3. The Association shall act in the same capacity and perform 
the same functions for all Divisional Authorities as specified for the 
Code Authority in Article II-A, Section 4. 

Article IV 

A. INDUSTRIAL RELATIONS POLICIES 

Section 1. In compliance with Section 7 (a) of the Act it is 
provided : 

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



78 

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

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

Sec. 2. No person under 16 years of age shall be employed in the 
Industry. No person under 18 years oi age shall be employed on 
any milling or calendering operations or any other operations where 
there may be recognized hazards connected with the job or operation. 

Sec. 3. No provision 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 protec- 
tion, than are imposed by this Code. 

Abticle V 

A. HOURS 

Section 1. Except as hereinbelow provided, no employee shall work 
or be permitted to work in excess of 40 hours in any one week or 
more than 8 hours in any 24-hour period. Provided that each em- 
ployee may be permitted to work a total of 80 hours per year in excess 
of the maximum hours specified above but not more than 48 hours in 
any one week. For all hours worked in excess of 40 hours per week, 
overtime shall be paid at the rate of time and one third. It is the 
intent that the hours worked by employees under this Section shall 
be consecutive, except that reasonable provision may be made for 
eating periods. 

Sec. 2. Maintenance creAvs, engineers, firemen, electricians, ship- 
ping crews, watchmen, and elevator operators shall not work or be 
Permitted to work more than 45 hours in any one week. Provided, 
owever, that this limitation of hours shall not apply in cases oi 
emergency, but in such cases all hours worked in excess of 45 hours in 
any one week shall be paid for at the rate of time and one third. 

Sec. 8. Accounting, clerical, office, service or sales employees (ex- 
cepting outside salesmen") shall not work or be permitted to work in 
excess of an average of 40 hours a week over the period of a month, 
nor more than 48 hours in any one week. 

Sec. 4. The maximum hours fixed in Sections 1, 2, and 3 shall not 
apply to salaried employees in any managerial, executive, clerical, 
supervisory, or technical capacity receiving more than $35.00 per 
week, nor to any outside salesmen. 

Sec. 5. No employee shall work or be permitted to work for a total 
number of hours in excess of the numoer of hours prescribed for 
each week and day, whether employed by one or more employers; 
provided, however, that if any employee works for more than one 
employer for a total number of hours in excess of such maximum 
without the knowledge or connivance of any one of his employers, 
such employer shall not be deemed to have violated this Section. 



79 

Sec. 6. No employee shall be classified in any of the foregoing 
excepted classes unless he performs functions identical with those 
performed by employees thus classified on June 10, 1933. 

B. WAGES 

Section 1. Except as herein below provided no employee shall be 
paid in any pay period less than at the rate of thirty-five cents 
($0.35) per hour. Apprentices, during a six weeks' apprenticeship, 
may be paid not less than twenty-eight cents ($0.28) per hour. Such 
apprentices shall be understooa as persons having no previous ex- 
perience or employment on similar work in the Industry and shall 
not constitute more than five (5) percent of the employees covered 
by this Section in the employ of any member of the Industry. Pro- 
vided, however, that if any member of the Industry finds such re- 
striction to five percent too stringent, such member may appeal to 
the Administrator^ who may grant an exception. 

Sec. 2, No salaried employee (except outside salesmen, office girla 
and boys, and clerical apprentices) shall be paid less than at the rate 
of— 

$15.00 per week — Cities over 500,000 population or in the im- 
mediate trade area of such a city. 
$14.50 per week— Cities between 250,000 and 500,000 popula- 
tion or in the immediate trade area of 
such city. 
$14.00 per week — Cities between 2,500 and under 250,000 pop- 
ulation or in the immediate trade area of 
such a city. 
$12.00 per week — Towns of less than 2,500 population. 

(a) Clerical apprentices during a six months' apprenticeship and 
office girls and boys may be paid not less than 80% of the above 
minimums. Such excepted office employees shall not exceed five (5) 
percent of the total number of employees covered by Section 2 in 
the employ of any member of the Industry. Provided, however, that 
if any member of the Industry finds such restriction of five percent 
too stringent, such member may appeal to the Administrator, who 
may grant an exception. 

Sec. 3. The provisions in Article V-B shall not apply to any em- 
ployee of ten years' service partially incapacitated through age or 
to any employee partially incapacitated through injury, or disease; 
provided, however, that such employee shall receive not less than 
twenty-five cents ($0.25) per hour. Each member of the Industry 
shall report to the Association monthly the number and names of 
employees so classified. 

Sec. 4. Female employees performing the same work as male em- 
ployees in manufacturing operations shall receive the same rates of 
pay as male employees. 

Sec. 5. Article v -B establishes minimum rates of pay which shall 
apply whether an employee is actually compensated on a time rate, 
piecework, or other basis. 

Sec. 6. Equitable adjustments in all pay schedules of factory em- 
ployees above the minimum shall be made within thirty (30) days 
after the approval of this Code, by any members of the Industry 



80 

who have not heretofore made such adjustments and the first 
monthly reports of wages required to be filed under this Code, shall 
contain all wage increases made since May 1, 1933. 

C. POSTING or LABOR PROVISIONS 

Section 1. Every member of the Industry shall post in conspic- 
uous places in all departments of his establishment or establishments 
copies of Articles IV and V of Chapter I of this Code. 

Article VI 
A. complaints and appeal 

Section 1. Any interested party shall have the right of complaint 
to any Divisional Authority, and prompt hearing and decision 
thereon in respect to any matter arising under this Code. Such com- 
plaint must be filed in writing with the Divisional Authority within 
a reasonable period of time after the complaint arises. Any in- 
terested party shall have the right of appeal to the Code Authority 
from any such decision, under such procedure as it shall prescribe. 

Sec. 2. Any interested party shall nave the right of complaint to 
the Code Authority and prompt hearing and decision thereon, under 
such procedure as it shall prescribe, in respect to any rule, regula- 
tion, order, or finding made by the Code Authority. 

Sec. 3. Any interested party shall have the right of appeal to the 
Administrator under such procedure as he shall prescribe in respect 
to any decision, rule, regulation, order, finding, or omission to act 
by the Code Authority or any Divisional Authority. 

Article VII 

A. costs and prices 

Section 1. Each member of the Industry shall substantially adopt 
and adhere to the methods of cost determination and the cost ac- 
counting formulae adopted by each Division, and advocated in the 
Association Accounting Manual and revisions thereof adopted by 
the Association from time to time, subject to the approval of the 
Administrator. 

Sec. 2. No member of the Industry shall initiate the sale and/or 
exchange of any product of its manufacture at a price or upon such 
terms or conditions as will result in the customer paying for the 
goods received less than the seller's own individual cost, determined 
as in Section 1, subject to any qualifications in the several Divisional 
Codes. Where the term " representative member " is used in any 
Divisional Code in connection with any such qualifications, it shall 
be deemed to exclude any member of the Industry whose actual capi- 
tal costs are unduly low due to the acquisition of plant at less than 
fair appraisal value, or to other exceptional circumstances out of the 
course of normal business ; but this shall not be construed as applying 
to any legitimate advantages due to location, material costs, or manu- 
facturing methods. Provided, that seconds and obsolete goods m&j 
be marketed on such terms and conditions as the Divisional Authori- 
ties may approve. 



81 
Article VIII 

A. MONOPOLIES 

Section 1. No provision of this Code shall be so applied as to per- 
mit monopolies or monopolistic practices, or to eliminate, oppress, or 
discriminate against small enterprisea 

Article IX 

A. EXPORTS 

Section 1. Subject to such qualifications as may be contained in 
the several Divisional Codes, the provisions of this Code now or here- 
after adopted with regard to prices, discounts, deductions, allow- 
ances, extras, commissions, or methods and/or terms of sale shall not 
apply to direct export sales. Upon application to the Code Author- 
ity, any member of this Industry may secure exemption from such 
provisions of this Code in regard to sales in the course of export 
(i.e., sales destined ultimately for export) or sales of materials used 
in the manufacture of products for export. The term " export " 
shall include, in addition to shipments to foreign countries, ship- 
ments to territories and possessions of the United States, except 
Alaska. 

Article X 

A. imports 

Section 1. Any Division of the Industry may set up a Committee 
on Imports whose duty it shall be to investigate and inform the 
President as to the importation of competitive articles into the 
United States in substantial quantities or increasing ratio to do- 
mestic production, on such terms or under such conditions as to 
render ineffective, or to seriously endanger the maintenance of this 
Code as provided in Section 3 (e) of the Act. The Committee shall 
make such reports of its findings to the Divisional Authority which 
shall inform the President through the proper channels. 

Article XI 

A. TRADE PRACTICES 

The following trade practices shall apply to all members of the 
Industry in addition to such trade practices as may be specifically set 
forth in the several Divisional Codes. 

Section 1. No member of the Industry shall use advertising 
(whether printed, radio, display or of any other nature) or other 
representation which is inaccurate in any material particular or 
which refers inaccurately to competitors or their commodities, prices, 
values, credit terms, policies or services. No member shall, in any 
way, misrepresent any commodity (including its use, trade mark, 
grade, quality, quantity, origin, size, specifications) or his credit 



82 

terms, values, policies, services or the nature or form of the business 
conducted. 

Sec. 2. No member of the Industry shall use advertising or selling 
methods or credit terms which tend to deceive or mislead a cus- 
tomer or prospective customer. 

Sec. 3. 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. 

Sec. 4. No member of the Industry shall secretly offer or secretly 
make any payment or allowance of a rebate, refund, commission, 
credit, unearned discount, or excess allowance, whether in the form 
of mone}^ or otherwise, for the purpose of influencing a sale; nor 
shall a member secretly extend to any customer any special service 
or privilege not extended to all such member's customers of the 
same class. 

Sec. 5. No member of the Industry shall give, permit to be given, 
or offer to give anything of value for the purpose of influencing or 
rewarding the action of any employee or agent of another, in rela- 
tion to the business of the employer of such employee, or the princi- 
pal of such agent without the knowledge of such employer or 
principal. 

Sec. 6, No member of the Industry shall, directly or indirectly, 
give or permit to be given or offer to give, money or anything of value 
to any customer or prospective customer, or to anyone else, upon 
the instigation and for the benefit of any customer or prospective 
customer, to induce such customer or prospective customer to pur- 
chase any products of the Industry from such members. 

Sec. 7. No member of the Industry shall secure confidential in- 
formation concerning the business of a competitor by a false or mis- 
leading statement or representation, by a false impersonation of one 
in authority, by bribery, or by any other unfair method. 

Sec. 8. No member of the Industry shall 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 inter- 
fere with or obstruct the performance of such contractual duties 
or services. 

Sec. 9. 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, 
eize, or specification of such commodity. 

Sec. 10. No member of the Industry shall withhold from or insert 
into any invoice any statement which would make the invoice a false 
record, wholly or in part, of the transaction to which it refers, or 
make any arrangement which contemplates payment or settlement 
contrary to the face of the invoice. 

Sec. 11. No member of the Industry shall imitate the trade mark 
of a competing member. 

Article XII 

A. revisions and modifications 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 



83 

provisions of subsection (b) of Section 10 of the Act, from time to 
time to cancel or modify any order, ajiproval, license, rule, or regula- 
tion issued under said Act and specifically, but without limitation, 
to the right of the President to cancel or modify his approval of this 
Code or an}' conditions imposed by him upon his approval thereof. 

Sec. 2. Such of the provisions of this Code as are not required by 
the Act to be included herein may, with the approval of the Presi- 
dent, be modified or eliminated as changed circumstances or expe- 
riences may indicate. It is intended that this Code shall be a basic 
code for the Industry and that additions to this Code applicable to 
all members of the Industry, or affecting or pertaining to one or 
more Divisions of the Industry, may be submitted to the President 
for approval, as herein provided. 

Sec. 3. By presenting this Code members of the Industry who 
have assented hereto shall not be deemed to have consented to any 
modification thereof, except as each shall thereto subsequently agree. 

Sec. 4. If any member of the Industry is likewise engaged in part 
in any other industry or trade, this Code shall apply only to such of 
the activities of said member as are comprehended within the Rubber 
Manufacturing Industry. 

Article XIII 

A. EFFECTIVE DATE AND TERMINATION 

Section 1. This Code shall become effective on the second Monday 
after it shall have been approved by the President of the United 
States. It shall continue in effect until June IG, 1935, or until such 
time prior thereto when the President shall, by proclamation, or the 
Congress shall by joint resolution, declare that the emergency recog- 
nized by Section 1 of the Act has ended. 



26076° 244-15( 



CHAPTEK II 

AUTOMOBILE FABRICS, PROOFING, AND BACKING 

DIVISION 

Article I 

A. DEFINITION 

Section 1. The Automobile Fabrics, Proofing, and Backing Divi- 
sion shall consist of all members of the Industry engaged in the 
manufacture for sale of the products of the Division as further de- 
fined herein, except as may be specifically covered by another duly 
approved Code of Fair Competition. 

(a) The term "Automobile Fabrics " as used herein includes all 
rubberized fabrics which are generally used for automobile top cov- 
erings and/or side curtains and/or accessories. 

(b) The terms " Proofing " and " Backing " as used herein include 
all materials which have been coated, backed, impregnated, and/or 
combined with rubber in any form, or gutta percha, such materials 
being in sheets or continuous rolls. The term shall likewise include 
materials which have been coated, backed, or combined with paste 
or glue bj members of the Industry engaged principally in proofing 
and backmg materials with rubber and gutta-percha. This definition 
includes, but without limitation, leatherette, flocked suede, trench, 
jersey, and other garment fabrics, hospital sheeting, shower-bath 
curtain materials, quarter lining and other shoe fabrics, corset fabric, 
weather stripping, sanitary specialties fabrics, cover cloths, novelty, 
luggage, and upholstery fabrics. 

Article II 

A. administration 

Section 1. An Automobile Fabrics, Proofing, and Backing Divi- 
sional Code Authority consisting of five persons (herein referred to 
as the Divisional Authority) is hereby set up for the administration 
of this Code in accordance with Chapter I, Article III -A. 

Sec. 2. The Divisional Authority shall consist of two representa- 
tives from the Automobile Fabrics Subdivision, two from the Proof- 
ing Subdivision and one from the Backing Subdivision. Such rep- 
resentatives shall be elected by vote of a majority of the Divisional 
Code members in number and volume in the respective Subdivisions. 

(84) 



85 
Article III 

A. COSTS 

Section 1. Notwithstanding the provisions of Chapter I, Article 
VII-A, Section 2, the following shall be the provisions as to the 
Cost Kecovery formula for this Division : 

(a) At the request of the Divisional Authority each member of 
the Division shall compute his own individual cost pursuant to the 
system of cost accounting provided in Article VII-A, of Chapter I 
and report such cost to the Association. The Divisional Authority 
shall then ascertain the cost of the most efficient member of the 
Division, i.e., that representative member of the Division whose 
cost is lowest. The Divisional Authority shall thereupon publish 
such cost to the members of the Division. Thereafter no member 
of the Division shall sell any product of the Division at a price 
lower than such cost. Such cost determination shall be revised from 
time to time at reasonable intervals. If the operation of this para- 
graph should work unjust hardship upon any member of the Divi- 
sion, such member may appeal to the Divisional Authority which 
shall have power to grant such relief as justice may require. 

Seo. 2. Within ten days after the date of approval of this Coda 
each member of the Division engaged in the manufacture of auto- 
mobile fabrics shall publish and file with the Association a schedule 
of its prices and terms of sale to the jobbing and replacement trade. 
All such price schedules shall be open to inspection in the office of 
the Association. The Association shall furnish copies of such sched- 
ules to any member of the Division who makes application therefor. 

Sec. 3. No member of the Division engaged in the manufacture of 
automobile fabrics shall sell such products at prices lower or on 
terms more favorable than the prices and terms in his price schedules 
and price lists filed pursuant to Section 2 of this Article, unless he 
has first filed revised schedules and lists to take effect in not less than 
five days from date of filing. The Association shall, promptly after 
receipt of such revised schedules and lists, notify all members af- 
fected. Such affected members may thereupon file with the Asso- 
ciation, revisions of their price lists which, if filed prior to the date 
when the revised price lists first filed shall go into effect, may become 
effective on said date. 

Article TV 

A. TRADE PRACTICES 

Section 1. No member of the Division shall consign any merchan- 
dise, except patented products. 

Sec. 2. Secret rebates, secret discounts, or secret bonuses shall not 
be given or extended to any person. No form of commercial brib- 
ery shall be practiced. 

Sec. 3. Money, goods, premiums, or a reduction in price of prod- 
ucts of the Division shall not be given to a purchaser for the pur- 
chaser's or his customers' advertising purposes. 

Sec. 4. No member of the Division shall depart from the following 
standard terms of sale : 



86 

(a) Automobile Fabrics. — (!) 2% cash discount, loth proximo, 
net 25th proximo, except that terms for goods billed and shippea 
to customers in the States of California, Oregon, and Washin^on 
from points east of the Mississippi River shall pe 2%, 15th proximo, 
net 25th proximo, 30 days extra. 

(2) No prepayment or allowance of freight shall be made, except 
on shipments of 100 pounds and over. 

(3) There shall be no post-dating, except that shipments made 
on or after the 25th day of the montn may be billed as of the first 
of the following month. 

(4) No material sold shall be invoiced to any other than the 
customer who placed the order. 

(b) Proo^ng. — (1) 2%, 30 days, net 35th day. Interest at the 
legal rate snail be charged after the 35th day. There shall be no 
post-dating. 

(c) Backing. — (1) 2%, 15th proximo, net 30th proximo. 

(2) No prepayment or allowance of freight shall be made except 
on shipments of 100 pounds and over. 

(3) Bona fide jobbers and/or distributors may be extended terms 
of 7%, 15th proximo, net 30th proximo. 

(4) There shall be no post-dating, except that shipments made 
on or after the 25th day of the montn may be billed as of the first 
of the following month. 

Sec. 6. After January 1, 1934, no member of the Division shall 
coat or combine customer's auto-topping fabrics to be used in the 
jobbing or replacement trades, whether domestic or export, or buy 
or take title to anj'^ material with the intent of evading this provi- 
sion. Should this provision work an unjust hardship on any member 
of the Division or on any customer, such member or customer may 
appeal to the Administrator who shall have power to grant such 
exemption or stay as justice may re(juire. 

Seo. 6. No member of the Division shall make blanket commit- 
ments for the sale of any products of the Division. 

Seo. 7. Every member of the Division shall conform to the stand- 
ard specifications and inspection rules adopted by the Division from 
time to time for auto-topping fabrics, subject to the approval of 
the Administrator. Should this provision work an unjust hardship 
on any member of the Division, such member may appeal to the 
Divisional Authority which shall have power to grant such relief 
as justice may require. 

Sec. 8. No member of the Division shall extend any guaranty or 
warranty in connection with any auto-topping fabrics other than 
the Standard Guaranty of the Association, reading as follows: 

" Guaranty on Double Texture Rubber Surface Coated Top Material 

" The material covered by this contract is guaranteed for a period 
of one year from date of shipment from supplier's mill against leak- 
ing due to deterioration of coating, provided the coating has not been 
in]ured by other materials used in conjunction with it, such as fillers 
used in closing the cracks or joints of the frame over which the top 
material is stretched, or from the use of top dressings or cleaning 
materials containing ingredients injurious to rubber. Neither will 



87 

the guaranty apply to leaks due to improperly attaching the material 
or to seams. 

" In the event of establishment of claim, we will replace the ma- 
terial without charge and allow approved labor cost of applying it 
to the top. 

" This guaranty does not apply to single-texture goods." 

Seo. 9. All contracts or orders hereinafter made shall contain a 
statement that prices on all orders shall include Federal or State 
taxes payable by members of the Division and all other increased 
costs incurred as a direct result of the operation of the Act. Con- 
tracts shall provide that prices shall be subject to increase without 
notice, by such amount as may be necessary to compensate a member 
for the increased cost incurred as a direct result of any State or 
Federal legislation enacted after the date of acceptance of any 
order and before shipment thereof is made. 

Sec. 10. No member of the Division shall either post-date or pre- 
date invoices for his product for the purpose of achieving an unfair 
competitive advantage. 

Sec. 11. Violation of any of the provisions of this Code shall be 
construed an unfair trade practice and shall be subject to the penal- 
ties of the Act. 

Article V 

A. alterations or amendments 

Section 1. Any addition, alteration, or amendment of this Code 
which has had the approval of the majority of the Divisional Code 
members in number and in volume shall be presented to the Code 
Authority in accordance with Chapter I, Article III-A, Section 2. 



CHAPTEE III 
RUBBER FLOORING DIVISION 

Article I 

A. DEFINITION 

Section 1. The Rubber Flooring Division shall consist of all 
members of the Industry engaged in the manufacture for sale or 
wholesale sale by manufacturers, or any subsidiary or affiliate of the 
game, of rubber tile flooring, sheet rubber flooring, wainscoting, in- 
terlocking tile, and other flooring accessories of which the chief 
component part is rubber, exclusive of mats and matting. 

Article II 

A. administration 

Section 1. A Rubber Flooring Divisional Authority consisting 
of three persons (herein referred to as the Divisional Authority) is 
hereby set up for the administration of this Code in accordance with 
Chapter I, Article III-A. Such Divisional Authority shall be 
elected by vote of a majority of the Divisional Code members in 
number and in volume. 

Article III 

A. MARKETING STANDARDS 

Section 1. To assist in providing uniform trade practices and 
preventing discrimination and unfair competition, the following 
group customer classifications, based upon differences in costs and 
services rendered, are hereby established. All members of the Divi- 
sion shall file with the Association the names and addresses of all 
distributors, sales agents, and special-brand accounts as herein de- 
fined. If such definitions shall by virtue of their application in this 
Chapter work hardship on any member of the Division or any 
customer, such member or customer may appeal to the Divisional 
Authority, which shall have power to reclassify such customer as 
justice requires. 

(a) Dealer. — A dealer shall be an account activelv engaged in the 
sale to and installation for the ultimate consumer, oi any products of 
the Division whether standard or special brand, 

(b) Preferred Dealer. — A preferred dealer shall be an account 
carrying an adequate stock of sheet-rubber flooring materials and 
actively engaged in their sale to the ultimate consumer, with or with- 
out installation. 

(88) 



89 

(c) Distributor. — A distributor shall be an account carrying an 
adequate stock of sheet-rubber flooring materials and actively en- 
gaged in their sale to any or all classes of accounts, with or without 
installation. 

(d) Original equipment customer. — An original equipment cus- 
tomer shall be an account which buys rubber flooring materials for 
use in the manufacture by it of products sold by it, such as elevators, 
railroad cars, steamships, busses, furniture and fixtures or for use in 
connection with the sale or installation of such products. 

(e) Sales agent. — A sales agent shall be an account engaged, di- 
rectly or indirectly, in the sale, without installation, of rubber floor- 
ing materials, to any or all classes of accounts. 

(f) Special hrand account. — A special brand account shall be an 
account actively engaged, directly or indirectly, in the sale, without 
installation, of special brand rubber flooring materials to any or all 
classes of accounts. 

(g) Ultimate consumer. 

Sec. 2. Inasmuch as approximately 75 percent of sales of prod- 
ucts of the Division to dealers is made direct by manufacturers, it 
is necessary to supplement marketing standards and trade practices 
by provisions designed to prevent indirect evasion of such standards 
and practices by members of the Division by sales to or through 
distributors, sales agents, or special brand accounts. Accordingly, 
it is provided that no member of the Division shall sell any product 
of the Division to or through any distributor, sales agent, or special 
brand account who is not complying with the provisions of Articles 
IV, V, and VI of this Chapter. 

Article IV 

A. SELLING SCHEDULES 

Section 1. Every member of the Division shall file with the Asso- 
ciation, within ten days after the approval of this Code, a complete 
schedule of his prices and terms of sale to dealers, preferred deal- 
ers, distributors, original equipment accounts, and ultimate con- 
sumers, as classified in Article III-A, Section 1, for immediate dis- 
tribution to all other members. 

Sec. 2. No member of the Division shall sell any product at prices 
lower or on terms more favorable than the prices and terms in hi? 
price schedules and price lists filed pursuant to Section 1 of this 
Article, unless he has first filed revised schedules and lists to take 
effect in not less than fifteen (15) days from date of filing and has 
supplied by registered mail sufficient copies of such revised price 
schedules and lists to permit distribution thereof to all members of 
the Division. Immediately upon receipt of such revised price sched- 
ules and lists the Association shall mail a copy thereof to each mem- 
ber of the Division. Any member of the Division may then file 
revised price schedules and lists which, if filed prior to the date 
when the revised price schedules and lists first filed shall go into 
effect, may become effective on said date. 

Sec. 3. Many members of the Division, either directly or through 
a branch, subsidiary, or affiliate, sell products of the Division to the 



90 

ultimate consumer and install the same. To maintain stability, it is 
necessary to prevent the operation of such selling with installation 
at a loss and the absorption of such loss by profits obtained in other 
phases of such members' businesses. Accordingly, it is hereby pro- 
vided that this phase of each member's business shall be segregated 
for costing purposes and, as thus segregated, shall be conducted in 
compliance with Article VII of Chapter I of this Code. 

Article V 

A. TRADE PRACTICES 

The following trade practices shall apply to the sale to any class 
of customer as set forth in Article III -A of this Chapter. 

Section 1. No member of the Division shall allow a shipment or 
eale of any goods which are in any way of a better or poorer quality, 
weight, or gauge or appearance than is represented. 

Sec. 2. No member of the Division shall sell or offer for sale an^ 
product of the Division which has been or should be properly classi- 
fied as " seconds ", except to employees for their own personal use 
and not for resale purposes. No member shall sell or offer for sale 
any obsolete and/or discontinued design and/or colors and/or 
remnants, at special prices without first : 

(a) Notifying the Divisional Authority two weeks in advance of 
the quantity and other pertinent specifications of such products to be 
so disposed of, with the reasons therefor. 

(b) Stating discount below the regular established price at which 
they are to be sold. 

(c) Obtaining the approval of the Divisional Authority for such 
disposal. If the Divisional Authority denies approval or fails to 
notify such member of its decision within ten (10) days, such mem- 
ber may appeal to the Administrator who shall have power to grant 
approval. The Divisional Authority shall advise all members of the 
Division simultaneously of such authorizations. 

Sec. 3. No member of the Division shall give or extend secret re- 
bates, secret discounts, or secret bonuses to any person or customer. 

Sec. 4. No member of the Division shall withhold from or insert 
into any invoice any statement which would make the invoice a false 
record, wholly or in part, of the transaction to which it refers, or 
make any aiTangement which contemplates payment or settlement 
contrary to the face of the invoice. 

Sec. 5. No member of the Division shall discriminate between cus- 
tomers by selling or shipping goods to any customer upon terms 
more favorable than to any such member's other customers of the 
same class. No member shall store goods in any establishment in 
which a customer has any interest nor shall warehouse premises be 
hired by any member from his customers, except where the customer 
may have, or own, an interest in a public warehouse in which a cus- 
tomer's place of business is not located. 

Sec. 6. No member of the Division shall guarantee or promise 
any dealer, preferred dealer, distributor, original equipment cus- 
tomer, sales agent, or special-brand account any specific volume of 



91 

sales or the assistance of any one or more salesmen of such member 
for any definite period, as an inducement for obtaining the account 
of such customer or customers. 

Sec. 7. No member of the Division shall ship or in any way 
deliver free goods of any kind, to any person as an inducement in 
connection with an}^ sale. 

Sec. 8. No member of the Division shall engage in untruthful, 
misleading advertising, or advertising disparaging of a competitor 
or tending to disparage a competitor or his products. 

Sec. 9. No member of the Division shall subnormally price any 
other products manufactured or sold by him, but not included in 
his rubber flooring price list, for the purpose of influencing the 
sale of rubber flooring materials. 

Sec. 10. If, as, and when any prospective purchaser demands, a 
performance bond of a member of the Division, each member shall 
give only such bond as shall conform with the terms of the standard 
guaranty of the Association, reading as follows : 

" We guarantee our product against defects provided our recom- 
mended cleaning instructions are followed and we will repair or 
replace any such defective product which is brought to our atten- 
tion, in writing, within one year after date of completion of installa- 
tion. 

"We do not accept responsibility for any damages arising from 
defects or dampness in subfloors or other surfaces which may occur 
after completion of installation." 

Sec. 11. Violation of any schedule filed with the Association as 
provided for in this Code, or the violation of any of the provisions of 
this Code shall be considered an unfair trade practice and shall be 
subject to the penalties of the Act. 

Article VI 

A. contracts with dealers 

Section 1. Each member of the Division may offer to any dealer a 
contract in such form and subject to such terms and conditions as 
may be prescribed by the President or the Administrator, under the 
terms of which contract such dealer shall agree to conform to the 
following practices: 

(a) To promptly furnish, on formal request of the Divisional 
Authority, a properly executed bid form, which shall be a true and 
precise record of any final bid, proposal, or quotation, 

(b) To segregate the quantities, sizes, £?Jid prices charged on each 
and all items involving materials other than rubber flooring, so that 
rubber flooring shall be shown separate from all other materials. 

(c) To furnish no performance bond not in conformity with the 
terms of the standard guaranty of the Association set forth in Article 
V-A, Section 10 herein, 

(d) To specify name or brand of rubber flooring in all bids, pro- 
posals, or quotations. 

(e) To refrain from subnormally pricing any othei' products sold 
by him, for the purpose of influencing the sale of rubber flooring, 

2607G° 244-156 33 4 



92 

(f) To make all bids, proposals, or quotations in accordance with 
plans or spocitications and on all open bidding to base all bids, pro- 

{:)Osals or ({notations on computations furnished bj'^ an estimating 
)ureau api^roved by the Di^dsional Authority. 

(g) To refrain from the giving of secret rebates or the practice 
of commercial bribery in any form. 

(h) To refrain from accepting an order from any customer on a 
blanket order basis which calls for areas and/or quantities not 
definitely specified or delivery date not specified. 

(i) To refrain from accepting additional orders on a contract 
at the original price unless such orders are placed before the original 
contract is completed and unless there has been no change in the 
dealer's scheduled installed price. 

Article VII 

A. ALTERATIONS AND AMENDMENTS 

Section 1. Any addition, alteration or amendment of this Code 
inay be proposed by any member of the Division, and after receiving 
the approval of a majority in volume and in number of the Divi- 
sional Code members, it shall be presented to the Code Authority 
in accordance with Chapter I, Article III- A, Section 2. 



CHAPTER IV 

RUBBER FOOllVEAR DIVISION 

Article I 

A. DEFINITION 

Section 1. The Rubber Footwear Division shall consist of all 
members of the Industry engaged in the manufacture for S9le or 
wholesale sale by manufacturers, or any subsidiary or affiliate of 
the same, of all' types of so-called " Waterproof and Canvas Rubber- 
Soled Footwear.'^ 

Article II 

A. ADMINISTRATION 

Section 1. A Rubber Footwear Divisional Code Authority con- 
sisting of three persons (herein referred to as the Divisional Au- 
thority) is hereby set up for the administration of this Code in 
accordance with Chapter I, Article III-A. Such representatives 
ehall be elected by a majority vote of the Divisional Code members. 

Sec. 2. The Divisional Authority shall set up the following com- 
mittees to further effectuate this Code, whose duties and responsi- 
bilities are hereinafter prescribed: 

^a^ A Marketing Committee consisting of three members. 

(b) A Specification Committee consisting of three members. 

(c) A Committee on Imports, consisting of three members, whose 
duty it shall be to investigate and inform the President as to the 
importation of competitive articles into the United States in sub- 
stantial quantities or increasing ratio to domestic production on such 
terms or under such conditions as to render insffective or to seriously 
endanger the maintenance of this Code as provided in Section 3 (e) 
of the Act. The Committee shall make such reports of its findings 
to the Divisional Authority, which shall inform the President 
through the proper channels. 

(d) Such additional conmfiittees as the Divisional Authority from 
time to time may deem desirable, in accordance with Chapter I, 
Article II-A, Section 3-e. 

Article III 

A. COST RECOVERY 

Section 1. The Specification Committee shall from time to time 
present for adoption, with reasonable tolerances, by the Division, 

(93) 



94 

definitions of standard products under the title " Standard Product 
Specifications ", which definitions when adopted shall be filed with 
the Association. 

Sec. 2. At the request of the Divisional Authority, each member 
of the Division shall compute his own individual cost for all prod- 
ucts defined in Article III- A, Section 1 of this Chapter, pursuant 
to the system of cost accounting provided in Article VII-A of 
Chapter I and report such cost to an impartial agency selected by 
the Divisional Authority. Such impartial agency shall then ascer- 
tain the cost of the most efficient member of the Division, i.e., that 
representative member whose cost is lowest. The Divisional Au- 
thority shall thereupon publish the cost of the most efficient member 
to all members of the Division. Thereafter no member of the Divi- 
sion shall sell any product of the Division at a price lower than 
such cost, otl>er than factory damaged or obsolete merchandise to be 
disposed of under Article IV-A, Section 1, of this Chapter. 

Sec. 3. Any member of the Division may make footwear of higher 
quality than any defined in the specifications adopted in Section 1 
and in that event shall sell such footwear at a proportionately higher 
price than his filed list, which shall truly reflect the increased cost of 
such footwear. The prices, discounts and terms of sale of such foot- 
wear of higher quality shall be filed with the Association from time 
to time promptly upon such issuance. 

Sec. 4. No member of the Division shall make footwear of lower 
quality than the lowest defined in the " Standard Product Specifi- 
cations " ; provided, however, that if this section works an unjust 
hardship on any member of the Division, such member may appeal 
to the Divisional Authority for an exemption. 

Article IV 

A. MARKETING STANDARDS 

Section 1. The Marketing Committee shall recommend for adop- 
tion by the Division, methods of properly identifying and disposing 
of factory damaged and obsolete goods, in order that the marketing 
of such goods may be carried out in an orderly and fair manner. 

Sec. 2. To assist in providing uniform trade practices and prevent- 
ing discrimination and unfair competition, group customer classifi- 
cation definitions, based upon differences in costs and services ren- 
dered, shall be adopted by the Division, subject to the approval of the 
Administrator, for the following classifications under the title of 
" Definitions of Buyers of Footwear ", and such definitions shall be 
filed from time to time with the Association : 



95 

(a) Classification of Buyers of Footwear* 
Jobbers 

Mail-Order Houses 

Chain Stores 

Department Stores 

Cooperative Buying Associations 

Group Buyers 

Industrials : 

Contractors 

Commissaries 

Abattoirs, etc. 
Government : 

Federal 

State 

County 

Municipal 
Retailer 
Agencies : 

Syndicates 

Resident buyers 
Consumers 

(b) If the definitions adopted should, by virtue of their applica/- 
tion, pursuant to this Chapter, work a hardship on any member of 
the Division or customer, such member or customer may apply to the 
Divisional Authority, which shall have power to reclassify such 
member or customer as justice may require. 

Article V 

A. PUBLICITY or PRICES AND TERMS OP SALE 

Section 1. Within ten days after the approval of this Code, every 
member of the Division shall file with the Association a complete 
schedule of his present unit prices, discounts, and terms of sale for 
all products denned in Article III-A, Section 1, herein, and to all 
classifications of Buyers defined in Article IV-A, Section 2 herein. 
Thereafter, annually each member shall file with the Association 
not less than ten days prior to the opening of the Waterproof " ad- 
vance order " season on February first and the opening of the Canvas 
Goods " advance order " season on September first, a complete sched- 
ule of his new unit prices, discounts, and terms of sale for such 
products, to such classifications of Buyers to become effective on 
such dates. No member shall sell any products of the Division at 
prices lower or on terms more favorable than the prices and terms 
in his price lists and schedules on file with the Association. Any 
member may file new schedules to meet competition within thirty 
days after the opening of the aforesaid " advance order " seasons, 
which new schedules may take effect not less than ten days from 
the date of filing. The Association shall, promptly after receipt of 
such revised lists and terms, notify all members affected. Such 
affected members may thereupon file with the Association revisions 
of their schedules which, if filed prior to the date when the revised 
schedules first filed shall go into effect, may become effective on said 



96 

date. Thereafter, any changes in schedules must be supported by- 
adequate cost data to warrant such changes, which data shall be 
submitted to the Divisional Authority. Whereupon, any member 
may file with the Association further revised schedules not less than 
ten days in advance of the effective date, in accordance with the 
procedure herein established. 

Sec. 2. No order shall be taken which guarantees prices beyond 
the expiration of the " consumer " season for the class of goods 
specified. Provided further, that, whenever a member of the Divi- 
sion files new prices during the " consumer " season, all shipments 
made by such member after the effective date of such change of 
price shall be at the new prices j except that orders on hand, shipment 
of which can be completed within 30 days after the effective date 
of such price change, may be filled at old prices provided that such 
30-day period does not extend beyond the expiration of such "con- 
sumer " season. Whenever a member files new prices during the 
" advance order " season, all shipments after the effective date of 
such jDrice changes, must be at new prices, except orders on hand, 
shipment of which can be completed within 30 days after the expira- 
tion of said " advance order " season. 

(a) For purposes of interpretation of this section the " advance 
order " and " consumer " seasons shall be as follows : 

" Advance order ", Waterproof — February 1 to September 1. 
Canvas — September 1 to March 1. 

" Consumer ", Waterproof — September 1 to February 1. Can- 
vas — March 1 to September 1. 

Article VI 

A. TRADE PRACTICES 

Section. 1. No member of the Division shall ship any merchan- 
dise under any conditions, on consignment to any classification of 
«j,ccount. 

Sec. 2. No member of the Division shall sell or offer for sale any 
Firsts as Seconds, or obsolete merchandise except in accordance witn 
Article IV- A, Section 1. 

Sec. 3. No member of the Division shall accept any order other 
than a detailed order with specified shipping date, prices, terms, and 
discounts. 

Sec. 4. No member of the Division shall offer or give so-called 
premiums with his merchandise. 

Sec. 5. Violation of any schedule filed with the Association as pro- 
vided in this Code, or the violation of any of the provisions of this 
Code, shall be considered an unfair trade practice, and subject to 
the penalties of the Act. 

Article VII 

A. SALES through JOBBERS OR AGENTS 

Section 1. In view of the fact that more than 75 percent of the 
total volume of sales of products of the Division to retailers consists 



97 

of sales direct by members of the Division, the restriction of such 
members to marketing standards and trade practices will be unavail- 
ing unless supplemented by provisions designed to prevent indirect 
evasion thereof through sales by jobbers or agents. Accordingly, it 
is hereby provided that no member of the Division shall sell products 
of the Division to or through any jobber or agent who is not com- 
plying with the provisions of Articles IV, V, and VI (except Sec- 
tion 4) of this Chapter. 

Article VIII 

A. INDUSTRY CAPACITY 

Section 1. The Divisional Authority ma}- proceed with a survey 
of the productive capacity of the Division and submit recommenda- 
tions to the Administrator concerning the desirability of limiting the 
expansion of the productive capacity of the Industry. 

Article IX 

A. alterations and amendments 

Section 1. After due notice to all members of the Division, the 
Divisional Authority may, at the request of a majority of the Divi- 
sional Code members ancl shall, at the request of 75 percent in num- 
bers representing 50 percent in volume of the Divisional Code mem- 
bers, submit to the Administrator for approval any recommended 
additions, alterations, or amendments to this Code in accordance 
with Chapter I, Article III-A, Section 2. 



CHAPTEK V 

HAKD KUBBEK DIVISION 

Article I 

A. DEFINITION 

Section 1. The Hard Rubber Division shall consist of all members 
of the Industry engaged in the manufacture for sale of any type of 
hard rubber products. 

Article II 

A. administration 

Section 1. A Hard Rubber Divisional Code Authority consisting 
of five persons (herein referred to as the Divisional Authority) is 
hereby set up for the Administration of this Code in accordance 
with Chapter I, Article III-A. Such representatives shall be elected 
by concurrent vote of a majority of the Divisional Code members in 
number and volume of hard rubber products. 

Article III 

A. COSTS 

Section 1. In the application of Article VII of Chapter I to this 
Division, the cost accounting formulae shall take due account of 
costs and expenses for equipment, including special molds, jigs, tools, 
etc., and installation costs of same and related costs of handling. 

Article IV 

A. marketing standards 

Section 1. No guaranty or warranty shall be made in connection 
with any product sold other than the standard guaranty of the 
Association, which is : 

" This merchandise is warranted to be free from defects of work- 
manship and material. The seller's liability hereunder is limited to 
the purchase price of merchandise which has failed through defect or, 
at the seller's option, to the replacing of such merchandise upon its 
return by the buyer with other merchandise of the quality warranted 
and with due allowance made for the service rendered by the mer- 
chandise returned." 

(98) 



99 

Akticle V 

A. SELLING SCHEDULES 

Section 1. Products of the Hard Rubber Division shall be divided 
Into standard lines and special items. 

A standard line shall be a line of products repeatedly made by 
more than one manufacturer for which general specifications may 
be drawn, and which, on account of similarity of the articles con- 
tained therein, may be priced on a substantially uniform basis accord- 
ing to size, weight, or per individual article. Standard lines may 
be furnished in accordance with customers' special designs and 
brands, but if such articles require special molds or parts to conform 
to customers' special designs or brands, such customers shall be 
charged for said special molds or parts of molds in accordance with 
Article III-A, Section 1. Special items shall comprise all articles 
not contained in any of the standard lines or directly comparable to 
any of the standard lines. 

Sec. 2. All members of the Division shall submit to the Divisional 
Authority a list of product classes manufactured by them which 
they believe should be classed as standard lines in accordance with 
the definition given above. The Divisional Authority shall make up 
from the lists submitted a schedule of the products to be classified as 
standard lines. Copies of schedules and specifications shall be sent 
to each member of the Division. Within ten days after receipt of 
such schedules and specifications each member of the Division shall 
file with the Association his price lists covering the standard line, 
lines, or part thereof that he manufactures. Such price lists shall 
follow the specifications, form, and arrangement established by the 
Divisional Authority and shall show all discounts allowed, together 
with mold policy. 

(a) No member shall sell any standard-line product at a price 
lower or at discounts greater or on terms more favorable than those 
stated in his current price list, unless he shall first file a revised 
price list to take effect in not less than ten days from date of filing. 
Price lists on standard lines shall be available to all members manu- 
facturing such lines and the Association shall send copies of such 
lists filed to the other members manufacturing that line. 

(b) If a member objects to any standard-line classification or 
specification set up hj the Divisional Authority, he may protest to 
said Authority in writing. Each protest shall receive due consider- 
ation and the protesting member shall be accorded a hearing if 
he so desires. Should the Divisional Authority decide that the 
standard-line classification or specification shall remain unchanged 
and the protesting member still objects thereto, said member shall 
have the right of appeal as provided in Article YI of Chapter I. 

Sec. 3. Upon application by any member, the Divisional Authority 
shall consider whether any class of product shall be removed from 
the special items and put under the standard-line classification. In 
the event that the Divisional Authority approves the application, 
procedure shall be as- outiiiunl above. 



100 
Article VI 

A. TRADE PRACTICES 

Section 1. Terms of shipment shall be f .o.b. point of manufacture, 
except, at the discretion of the seller, transportation charges on ship- 
ments of 100 pounds and over may be allowed. 

Sec. 2, Regular terms of payment for special items shall be a maxi- 
mum cash discount of 2% ten days, net 30 days. Where a member 
is regularly supplying a customer, the 2% discount may be extended 
up to the 25th proximo. 

Sec, 3. Orders shall specify a definite quantity. No contracts shall 
be made guaranteeing prices for a longer period than six months 
from date of order. Contracts which of necessity must be spread 
over a longer period of time shall specify " price of any undelivered 
portion of this contract six months from the date of this contract 
IS subiect to change with reference to the then-prevailing market 
price. 

Sec, 4. All quotations and order acknowledgements shall specify 
that the prices do not include sales taxes and shall be subject to in- 
crease to cover any taxes or any other increased costs directly due 
to present or future legislationj either Federal or State. 

Sec. 5. No member of the Division shall sell any products of the 
Division on consignment. 

Sec. 6. No member of the Division shall enter into any contract 
for furnishing any of his products contingent upon the sale or pur- 
chase of any other thing, or the performance of any other service. 

Sec. 7. No member oi the Division shall furnish without charge 
samples of products in excess of what are actually required reason- 
ably to serve the intended purpose. 

Sec, 8, Violation of any schedule filed with the Association as 
provided for in this Code, or the violation of any of the provisions 
of this Code shall be considered an unfair trade practice. 

Article VII 

A, alterations or amendments 

Section 1. Any addition, alteration, or amendment of this Code, 
which has had the approval of the majority of the Divisional Code 
members in numbers and in volume of hard-rubber products, shall 
be jpresented to the Code Authority in accordance with Chapter I, 
Article III- A, Section 2. 



CHAPTER VI 

HEEL AND SOLE DIVISION 

Artioue I 

A. DEFINITION 

Section 1. The Heel and Sole Division shall consist of all members 
of the Industry engaged in the manufacture for sale of rubber heels, 
soles, soling sheets, strips, taps, sport soles, sport heels, stick-on solea 
and neels. and rubber heel and sole cement. 

Artici;e II 

A. administration 

Section 1. A Heel and Sole Divisional Authority consisting of 
five persons (herein referred to as the Divisional Authority) is hereby 
set up for the administration of this Code in accordance with Chapter 
I, Article III-A. Such representatives shall be elected by a vote of a 
majority of the Divisional Code members in number and volume, 
and shall be composed of representatives of two small-size companies, 
two large-size companies and one medium-size company. 

Article III 

A, MARKETING STANDARDS 

Section 1. To assist in providing uniform trade practices and 
preventing discrimination and unfair competition, group customer 
classification definitions, based on differences in costs and services 
rendered, shall be adopted by the Division, subject to the approval of 
the Administrator, for the following classifications, under the title 
of '■ Definitions of Buyers of Heels and Soles " and such definitions 
shall be filed from time to time with the Divisional Authority. 

^a) Shoe manufacturers including wood-heel manufacturers. 

(b) Wholesale merchants including leather and findings distrib- 
utors and jobbers, wholesale hardware, harness, grocery, novelty, 
and general merchandise. 

(c) Mail order and/or chain store retail merchants, excluding 
those engaged in the business of alteration and/or repair of footwear. 

^d) Manufacturers' distributors or sales agents 

(e) Shoe repair shops, individual and multiple. 

Sec. 2. If such definitions shall by virtue of their application 
pursuant to this Chapter, work hardship or any member of the 
Division or customer, such member or customer may apply to the 

(ion 



102 

Divisional Authority, which shall have power to reclassify such 
customer as justice may require. 

Sec. 3. No member of the Division may market his products 
through a manufacturer's distributor or sales agent who is not com- 
plying with the terms of Articles III and IV of this Chapter. 

Sec. 4. Within ten days after the date of approval of this Code, 
each member of the Division shall publish and file with the Divi- 
sional Authority a schedule of its prices and terms of sale for each 
of the classes of customers referred to in Section 1 of this Article, 
except manufacturers' distributors and sales agents, on all standard 
products sold by it. All such price schedules shall be open to in- 
spection at the office of the Divisional Authority. The Divisional 
Authority shall furnish copies of such schedules to any member of 
the Division who makes application therefor. 

Sec. 5, No member of the Division shall sell any standard prod- 
uct at prices lower or on terms more favorable than the prices and 
terras in his price schedules and price lists filed, pursuant to Section 
4 herein, unless he has first filed revised schedules and lists to 
take effect in not less than five days from date of filing. The 
Divisional Authority shall promptly after receipt of such revised 
schedules and lists notify all members affected. Such affected mem- 
bers may thereupon file with the Divisional Authority revisions of 
their price lists, which, if filed prior to the date when the revised 
price list first filed shall go into effect, may become effective on said 
date. 

Article IV 

A. TRADE PRACTICES 

Section 1. All shipments of goods shall be made and invoices 
rendered at prices and terms as shown on the member's schedule of 
prices in effect at the time of sale, and such invoices shall show 
accurately quantities, grades, types, sizes, colors, gauges, and other 
features exactly in accordance with the shipment made. 

Sec. 2. No member of the Division shall offer or give any special 
terms, prices, consignments, allowances, secret rebates, either directly 
or indirectly, or any concessions of any kind or description not shown 
on the member's published schedule of prices. 

Sec. 3. No member of the Division, for itself or through its sales- 
men or other employees, shall engage in lavish entertainment of 
customers or their employees, or permit bribes of any kind or descrip- 
tion, or engage in gambling or bets of any nature with the intention 
of losing, or make loans to customers or their employees, or sub- 
normally price any other product manufactured and/or sold by the 
member, or engage in any other act or practice commonly known as 
" commercial bribery ", for the purpose of selling merchandise or 
to lower its cost to the purchaser. 

Sec. 4. Terms of shipment shall be f .o.b. point of shipment, except 
at the discretion of the seller, transportation charges on shipments 
of 100 pounds and over may be allowed. In the event that the means 
of transportation employed results in a cost in excess of the pub- 
lished freight rates from point of origin to destination, then the 



103 

transportation allowance shall not exceed the published freight rate 
applicable to the tonnage involved in the shipment. 

Sec. 6. Violation of any schedule filed with the Divisional Author- 
ity as provided in this Code, or the violation of any of the provi- 
sions of this Code shall be considered an unfair trade practice, and 
subject to the penalties of the Act. 

Article V 

A, ALTERATIONS OR AMENDMENTS 

Section 1. Any addition, alteration, or amendment of this Code 
•which has the approval by concurrent vote, of a majority in number 
and in volume of the Divisional Code members shall be presented to 
the Code Authority in accordance with Chapter I, Article III-A, 
Section 2. 



CHAPTER VII 

MECHANICAL RUBBER GOODS DIVISION 

Article I 

A. DEFINITION 

Section 1. The Mechanical Rubber Goods Division shall consist 
of all members of the Industry engaged in the manufacture for 
sale of all types of belting other than leather and balata, hose of 
all types, rubber cord and thread; jar rings, rubber friction tape, 
rubber splicing compound, rubber mats and matting, rubber tubing; 
all types of mechanical rubber molded and lathe-cut and extruded 
goods, rubber packing of all types ; rubber-covered rollers and rubber 
rolls, and such other articles as are generally considered as Mechan- 
ical Rubber Goods. 

Article II 

A. ADMINISTRATION 

Section 1. A Mechanical Goods Divisional Code Authority con- 
sisting of three persons (herein referred to as the Divisional Au- 
thority) is hereby set up for the administration of this Code in 
accordance with Chapter I, Article III-A. Such representatives 
shall be elected by a majority in number and volume of the Divi- 
sional Code members. 

Article III 

A. marketing standards 

Section 1. To assist in providing uniform trade practices and pre- 
venting discrimination and unfair competition, group customer clas- 
sifications, definitions, based upon differences in costs and services 
rendered, may be adopted by the Division, subject to the approval 
of the Administrator, for the following classifications under the title 
of " Definitions of Buyers of Mechanical Rubber Goods " and such 
definitions shall be filed from time to time with the Association. 

(104) 



105 

Classification of Buyers of Mechanical Rubber Goods: 

Jobbers and Mill Supply Houses 

Distributors 

Dealers 

Mail Order — Chain Stores 

Department Stores 

Syndicate Buyers 

Equipment Manufacturers 

Industrials 

Gov^ernment : 
Federal 
State 
County 
Municipal 

Consumers 
If such definitions shall by virtue of their application, pursuant 
to this Chapter, work hardship on any member of the Division or 
customer, such member or customer may apply to the Divisional 
Authority, which shall have power to reclassify such customer as 
justice may require. 

Sec. 2. Each member of the Division shall establish a price sched- 
ule for standard goods, as recognized by the Division, properly ap- 
plicable to each classification and price lists for goods made to 
recognized standard specifications. Having established such price 
schedules and price lists, which may be revised from time to time, 
they shall be filed with the Association on or before the date speci- 
fied by the Divisional Authority. 

Sec. 3. If any member of the Division wishes to make a sale of 
merchandise classed as overstock or obsolete material, or below value 
for any cause at less than the minimum price as determined by the 
Cost Recovery Formulae in Chapter I, Article VII, such member 
shall apply to the Divisional Authority for its sanction to so dispose 
of such products. Such request shall be in the form of a written 
application stating the reason therefor, together with such data as 
will support such request, and such member shall furnish such addi- 
tional information, at its own expense, as the Divisional Authority 
may require. The Divisional Authority, following such procedure 
as it shall establish, shall consider such application, and if on inves- 
tigation it shall find that any such proposed sale at less than the 
minimum price so determined may constitute unfair competition, it 
may disapprove the same. If the Divisional Authority does not 
notify such member of its decision within ten (10) days after receipt 
of application, such member may appeal to the Administrator, 

Article IV 

A. SEIZING SCHEDULrS 

Section. 1. No member of the Division shall initiate a price not 
in accordance with Chapter I, Article VII. No member shall sell 
any standard ^oods or goods made under recognized standard speci- 
fications at prices lower or on terms more favorable than the price? 
and terms in his price schedules and price lists filed pursuant to 



106 

Article III of this Cliapter, unless he has first filed revised schedules 
and lists to take effect in not less than 10 days from date of filing. 
The Association shall promptly after receipt of such revised sched- 
ules and lists notify all members affected. Such affected members 
may thereupon file with the Association, if they so desire, revisions 
of their price lists which, if filed prior to the date when the revised 
price lists first filed shall go into effect, may become effective on said 
date. 

Sec. 2. On goods made to customers' specifications the minimum 
selling price of any member of the Division shall be the cost of the 
most efficient member of the Division, i.e., that representative mem- 
ber of the Division whose cost is lowest. Each member of the 
Division shall compute his own individual costs on such goods, ac- 
cording to the methods of cost determination and the cost account- 
ing formulae adopted by the Association and this Division pursuant 
to Section 1 of Article VII of Chapter I of this Code and report 
the same to the Association. The Association shall ascertain the 
costs of the most efficient member of the Division and publish such 
figures to the Division. Such lowest cost finding shall be revised 
from time to time at reasonable intervals. Nothing herein contained 
shall be construed to permit any member of the Division to initiate 
a price which will result in the customer paying less than the mem- 
ber's own individual cost, as provided in Section 2 of Article VII 
of Chapter I. 

Article V 

A. TRADE PRACTICES 

Section 1. Uniform terms of sale shall be established by the 
Divisional Authority, subject to the approval of the Administrator, 
which may include freight paid or allowed to customer. In no 
case shall the freight allowed by any member to any customer be 
more than the published freight rat« by the route used from the 
member's factory to the destination. 

Sec. 2. No member of the Division shall offer or give any dis- 
counts other than those specified in such member's price schedules 
or price lists, on file with the Association. After January 1, 1934, no 
member of the Division shall offer or give any rebates or bonuses, to 
any classification of buyers. 

Sec. 3. No guaranty or warranty shall be made in connection with 
any product sold, other than the standard guaranty of the Associa- 
tion, which is : " This merchandise is warranted to be free from de- 
fects of workmanship and material. The seller's liability hereunder 
is limited to the purchase price of merchandise which has failed 
through defect or, at the seller's option, to the replacing of such mer- 
chandise upon its return by the buyer with other merchandise of the 
quality warranted and with due allowance made for the service ren- 
dered by the merchandise returned." 

Sec. 4. No guaranty against decline of price on contracts or orders 
shall be made to anyone — excepting, however, such items of seasonal 
character as may be specified by the Divisional Authority, subject 
to the approval of the Administrator. Any such guaranty shall 
apply only to the unshipped portion of any contract or order. 



107 

Sec. 5. No member of the Division shall enter into any contract 
for furnishing any of his products contingent upon the sale or pur- 
chase of any other thing, the performance of any other service, or 
any other contingency not appealing in the contract or complying 
with this Code. 

Sec. 6. No member of the Division shall furnish without charge 
samples of products in excess of what are actually required reason- 
ably to serve the intended purpose. 

Sec. 7. No member of the Division shall permit or extend exclusive 
missionary sales help to any one distributor of its product for a 
period in excess of 90 days in any one year. 

Sec. 8. No member of the Division shall either post-date or pre- 
date any invoice for his product for the purpose of achieving an 
unfair competitive advantage. 

Sec. 9. Violation of any schedule filed with the Association as pro- 
vided in this Code^ or the violation of any of the provisions of this 
Code shall be considered an unfair trade practice and subject to the 
penalties of the Act. 

Article VI 

A. GENERAL 

Section 1. The Divisional Authority shall make such studies of the 
productive capacity of the Division as may be desirable from time 
to time and make recommendations as to its findings to the Ad- 
ministrator. 

Article VII 

A. ai/feratigns or amendments 

Section 1. Any addition, alteration, or amendment of this Code 
which has had the approval of the majority of the Divisional Code 
members in number and in volume, shall be presented to the Code 
Authority in accordance with Chapter I, Article IH-A, Section 2. 



CHAPTER VIII 

SPONGE RUBBER DIVISION 

Article I 

A. DEFINITION 

Section 1. The Sponge Rubber Division shall consist of all mem- 
bers of the Industry engaged in the manufacture for sale of any type 
of sponge rubber products. 

Article II 

A. administration 

. Section 1. A Sponge Rubber Divisional Code Authority consist- 
ing of three persons (herein referred to as the Divisional Authority) 
is hereby set up for the administration of this Code in accordance 
with Chapter I, Article III-A. Such representatives shall be elected 
by a majority in number and volume of the Divisional Code 
members. 

Article III 

A. trade practices 

Section 1. No member of the Division shall depart from the 
following standard terms of sale : 

(a) The maximum cash discount of 2%, 10 days — net 30 days 
except that where a member of the Division is regularly supplying 
a customer the 2% discount may be extended up to the 25th proximo. 

(b) Freight may be paid or allowed to customer, but in no case 
shall the freight allowed by any member of the Division exceed the 
published freight rate via the route used from the member's factory 
to destination. 

All quotations and order acknowledgments shall specify that the 
prices do not include sales taxes and shall be subject to increase to 
cover any taxes or any other increased costs directly due to the 
enactment of present or future legislation, either Federal or State. 

Sec. 2. No member shall either postdate or predate invoices for 
his product for the purpose of achieving an unfair competitive 
advantage. 

Sec. 3. No member of the Division shall dispose of any " seconds " 
or obsolete merchandise without first reporting to the Divisional 
Authority the approximate quantity, class of goods, the reason for 
disposing of them in other than regular channels, or at other than 
regular prices. 

(108) 



109 

Sec. 4. No member of the Division shall let out the manufacture 
of anj' products to homeworkers. 

Sec. 5. No guaranty or warranty shall be made in connection with 
any product sold other than the standard guaranty of the Associa- 
tion, which is : " This merchandise is warranted to be free from de- 
fect of workmanship and materials. The seller's liability hereunder 
is limited to the purchase price of merchandise which has failed 
through defect or, at the seller's option, to the replacing of such 
merchandise upon its return by the buyer with other merchandise of 
the quality warranted and with due allowance made for the service 
rendered by the merchandise returned." 

Sec. 6. No member of the Division shall ship any merchandise 
under any conditions on consignment to any classification of account. 

Sec. 7. No member of the Division shall furnish without charge 
samples of products in excess of what are actually required reason- 
ably to serve the intended purpose. 

Sec. 8. No member of the Division shall enter into any contract 
for furnishing any of his products contingent upon the sale or pur- 
chase of any other thing, the performance of any other service, or 
any other contingency not appearing in the contract or complying 
with this Code. 

Sec. 9. No member of the Division shall furnish an advertising 
allowance of any kind. 

Sec. 10. The violation of any provisions of this Code shall be con- 
sidered an unfair trade practice and shall be subject to the penalties 
of the Act. 

Article IV 

A. ALTERATIONS AND AMENDMENTS 

Section 1. Any addition, alteration, or amendment of this Code 
which has had the approval of the majority of the Divisional Code 
members in numbers and volume shall be presented to the Code 
Authority in accordance with Chapter I, Article III-A, Section 2. 



CHAPTER IX 

RUBBER SUNDRIES DIVISION 

Article I 

A. DEFINITION 

Section 1, The Rubber Sundries Division shall consist of all 
members of the Industry engaged in the manufacture for sale of 
rubber sundries, including druggists', hospital, and medical rubber 
goods except hospital sheeting, stationers' rubber goods, rubber 
bathing apparel, rubber gloves, and other miscellaneous articles 
made of rubber, except as may be specifically covered by another 
duly approved Code of Fair Competition. 

Article II 

A. administration 

Section 1. A Rubber Sundries Divisional Code Authority ^herein 
referred to as the Divisional Authority) is hereby set up tor the 
administration of this Code in accordance with Chapter I, Article 
III-A. 

Sec. 2. The Divisional Code Authority shall consist of tti« chair- 
men of the several Subdivisions herein established, and the cnair- 
man of the Divisional Authority, all to be elected as hereinafter 
described. 

(a) The chairman of the Divisional Code Authority, and his 
alternate, shall be elected by a majority vote (each Divisional Code 
member having one vote) at a regular meeting of the Rubber Sun- 
dries Division. The chairman, or his alternate, shall represent the 
Sundries Division on the Rubber Code Authority, subject to the 
qualifications contained in Chapter I, Article III- 

(b) A chairman shall be elected for each of the following Sub- 
divisions, consisting of members engaged in producing the class of 
merchandise, indicated by the title. 

Stationers^ Rubber Goods; Rubber Gloves; Druggists*, Hospital, 
and Medical Rubber Goods; Rubber Bathing Apparel. 

(c) Each Subdivision shall elect a chairman by a majority vote 
(each Divisional Code member shall have a single vote in each 
Subdivision of which it is a member) who shall represent the Sub- 
division as a member of the Divisional Authority. 

(d) One alternate shall be elected by each Subdivision to repre- 
sent the chairman of that Subdivision in his absence. No alternate 
Bhall, however, be affiliated with any member of the Division already 
represented on the Divisional Authority. 

(110) 



Ill 

(e) Any additional Subdivisions may be established at the dis- 
cretion of the Divisional Authority. Such additional groups, when 
and if established, shall elect a chairman and an alternate as pre- 
scribed under paragraphs (c) and (d) of this Section, who shall 
represent such additional groups on the Divisional Authority. 

(f) The Divisional Authority shall set up a Committee on Im- 
ports consisting of three members whose duty it shall be to inves- 
tigate and inform the President as to the importation of competi- 
tive articles into the United States in substantial quantities or 
increasing ratio to domestic production, on such terms or under such 
conditions as to render ineffective, or to seriously endanger the 
maintenance of this Code as provided in Section 3 (e) of the Act. 
The Committee shall make such reports of its findings to the Divi- 
sional Authority which shall inform the President through the 
proper channels. 

Article III 

A. COSTS AND PRICES 

Section 1. Within ten days aft^r the date of approval of this Code, 
each member of the Stationers' Rubber Goods Subdivision of the 
Division shall publish and file with the Association complete sched- 
ules of its prices, discoimts, and terms of sale. All such schedules 
shall be open to inspection at the oflBce of the Association. The Asso- 
ciation shall furnish copies of such schedules to all members of the 
aforesaid Subdivision. 

Sec. 2. No member of the Stationers' Rubber Goods Subdivision 
shall sell any product thereof at prices or discounts lower or on terms 
more favorable than the prices, discounts, and t^rms in his price 
schedules and price lists filed with the Association in accordance 
with Section 1 of this Article, unless he has first filed revised sched- 
ules and lists to take effect in not less than ten (10) days from date 
of filing. Promptly aft^r receipt of such revised schedules and 
lists the Association shall notify all members of the aforesaid Sub- 
division who may thereupon file with the Association revisions of 
their prices, discounts, and terms, which^ if filed prior to the date 
when the revised price schedules and price lists first filed shall go 
into effect, may become effective on said date. 

Article IV 

A. TRADE PRACTICES 

Section 1. No member of the Division shall depart from the fol- 
lowing standard terms of sale : 

(a) Maximum cash discount 2%, 10th proximo, except west of 
Denver, Colorado, where terms may be 2%, 10th, second proximo, to 
accounts to which shipments shall be made from shipping points east 
of the Mississippi River. Provided, however, that seasonal items 
may be sold on longer terms when sanctioned by the Divisional Au- 
thority. If the Divisional Authority does not notify the member of 
the Division who applies for longer terms, of its decision within ten 



112 

riO) days from the date of application, such member may appeal to 
tne Administrator. 

(b) AVhere freight may be paid or allowed to customer, in no case 
shall such payment or allowance exceed the charge for tne tonnage 
involved at the published freight rate by the route used from tno 
member's factory to destination. 

Sec. 2. Rebates, discounts, or bonuses shall not be given or extended 
to any. customer unless they are available to all customers of the same 
class on equal terms. 

Sec. 3. No merchandise shall be shipped on consignment, guar- 
anteed sale, or terms other than those established under Section 1 of 
this Article. 

Sec. 4. No member of the Division shall let out any manufacturing 
to home workers. 

Sec. 5. No member of the Division shall furnish salesmen or 
demonstrators for sales work other than for his own sales to his own 
customers. 

Sec. 6. No member of the Division shall either post-date or pre- 
date invoices for his product for the purpose of achieving an unfair 
competitive advantage. 

Sec. 7. No member shall furnish an advertising allowance of any 
kind. 

Sec. 8. No member of the Industry shall usurp a design, style, or 
pattern originated by another member of the Industry and/or 
appropriate them for his own or customer's use during the twelve 
months following its introduction. 

Sec. 9. The violation of any of the provisions of this Code shall 
be considered an unfair trade practice and shall be subject to the 
penalties of the Act. 

Article V 

A. alterations or amendments 

Section 1. Any addition, alteration, or amendment of this Code 
which has had the approval of the majority of the Divisional Code 
members in numbers shall be presented to the Code Authority in 
accordance with Chapter I, Article III-A, Section 2. 



CHAPTER X 

RAINWEAR DIVISION 

Article I 

A. DEFINITIONS 

Section 1. The Rainwear Division shall consist of all members 
of the Industry engaged in the manufacture for sale of garments 
made from rubberized or waterproof fabrics, commonly called rain- 
wear, excluding oiled cotton garments. The manufacture of the 
rubberized or waterproofed fabrics themselves is specifically in- 
cluded under Chapter II of this Code. 

Sec. 2. The term " manufacturing employee " as used herein in- 
cludes all employees engaged in the cutting, machine operating, 
cementing, buttonhole-making and button-sewing operations in any 
factory in the Division. 

Sec. 3. The term " nonmanuf acturing employee " as used herein 
includes all employees engaged in brushing or cleaning away the 
threads from finished garments and folding them or in any other 
miscellaneous nonmanufacturing process in any factory in the 
Division. 

Article II 
A. administration 

Section 1. A Rainwear Divisional Code Authority consisting of 
seven persons (herein referred to as the Divisional Authority) is 
hereby set up for the administration of this Code in accordance with 
Chapter I, Article III -A. 

Sec. 2. The Divisional Authority shall consist of two representa- 
tives selected from the Midwestern members of the Division, two 
from New England, two from New York, together with one repre- 
sentative from the Vulcanized Rainwear Subdivision. Such mem- 
bers shall be elected by a majority of the members of the Division 
in each of the three geographical areas specified, together with the 
member so elected bv the Vulcanized Rainwear Subdivision. 

Sec. 3. Five members of the Divisional Authority shall constitute 
H quorum and a majority of a quorum must be had before any 
decision on any matter may be determined. 

Article III 

Notw^ithstanding the provisions of Article V, Chapter I, of this 
Code, the following shall be the provisions as to hours and wages 
for the Rainwear Division. 

(113) 



114 



A. H0UK3 

Section 1. Except as herein below provided, no employee shall 
work or be permitted to work in excess of 40 hours in any one week, 
nor more than 8 hours in any 24-hour period. Such work shall take 
place in five days of the week, exclusive of Saturday and Sunday, 
subject to the right of the Divisional Authority, under special cir- 
cumstances, to permit any or all members of the Division an excep- 
tion from this particular restriction. Overtime shall be expressly 
prohibited. 

Sec. 2. Maintenance crews, engineers, firemen, electricians, ship- 
ping crews, watchmen, and elevator operators shall not work or be 
permitted to work more than 45 hours in any one week. Provided, 
however, that this limitation of hours shall not apply in cases of 
emergency, but in such cases all hours worked in excess of 45 hours 
in any one week, shall be paid for at the rate of time and one third. 

Sec. 3. Accounting, clerical, oiEce, service, or sales employees (ex- 
cepting outside salesmen) shall not work or be permitted to work in 
excess of an average of 40 hours a week over the period of a month, 
nor more than 48 hours in any one week. 

Sec. 4. The maximum hours fixed in Sections 1, 2, and 3 shall 
not apply to salaried employees in any managerial, executive, 
clerical, supervisory, or technical capacity, receiving more than $35.00 
per week, nor to any outside salesmen. 

Sec. 5. No employee shall work or be permitted to work for a 
total number of hours in excess of the number of hours prescribed 
for each week and day, whether employed by one or more employers ; 
provided, however, that if any employee works for more than one 
employer for a total number of hours in excess of such maximum 
without the knowledge or connivance of any one of his employers, 
such employer sliall not be deemed to have violated this section. 

Sec. 6. No employee shall be classified in any of the foregoing 
excepted classes unless he performs functions identical with those 
performed by employees thus classified on June 16, 1933. 

Sec. 7. Immediately after the effective date of this Code, the 
Divisional Authority shall begin an investigation to determine 
whether or not the 40 hour week provision of this Article will result 
in increased employment within the purpose and policy of the Act. 
The Divisional Authority, not later than 90 days after the effective 
date of this Code, shall report its findings to the Administrator so 
that the Administrator may determine whether or not the provi- 
sions of this Article as to maximum hours should be changed. 

B. WAGES 

Section. 1. Except as herein below provided no emploj^ee (other 
than apprentices) shall be paid in any pay period, less than at the 
rate of 

For nonmanufacturing employees, $0.35 per hour. 
For manufacturing employees, $0.40 per hour. 
Sec. 2. No apprentice or learner shall be paid in any pay period 
less than at the rate of twenty-eight cents ($0.28) per hour. Pro- 
vided, however, that such apprentices or learners, where piece-work 



115 

is used, shall be paid at the piece-work rates paid to experienced 
workers, but in no case less than the above minimum. Such appren- 
tices shall be understood as persons who have worked or been em- 
ployed in the Rainwear Industry for less than six weeks. Such 
apprentices shall not constitute more than five (5) percent of the 
manufacturing and nonmanufacturing employees in any one estab- 
lishment. 

Sec. 3. No salaried employee ( except outside salesmen, office girls 
and boys, and clerical apprentices) shall be paid less than at the rate 
of— 

$15.00 per week — Cities over 500,000 population or in the im- 
mediate trade area of such a city. 
$14.50 per week— Cities between 250,000 and 500,000 popula- 
tion or in the immediate trade area of such a city. 
$14.00 per week — Cities between 2,500 and under 250,000 popu- 
lation or in the immediate trade area of such a city. 
$12.00 per week — Towns of less than $2,500 population. 

(a) Clerical apprentices during a six months' apprenticeship and 
office girls and boys may be paid not less than 80% of the above 
minimums. Such excepted office employees shall not exceed five (6) 
percent of the total number of employees covered by this Section 
m the employ of any member of the Division. 

Sec. 4. Female employees performing the same work as male em- 
ployees in manufacturing operations shall receive the same rates 
of pay as male employees. 

JSec. 5. This Article establishes minimum rates of pay which shall 
apply whether an employee is actually compensated on a time rate, 
piecework, or other basis. 

Sec. 6. The existing amounts by which hourly earnings in the 
higher paid classes exceeded the minimum rates herein specified, as 
of JuljT^ 1, 1933, shall be maintained. 

Sec. 7. Equitable adjustments in all pay schedules of factory 
employees above the minimum shall be made within thirty (30) days 
after the approval of this Code, by any members of the Industry 
who have not heretofore made such adjustments, and the first monthly 
reports of wages required to be filed under this Code shall contain 
all wage increases made since May 1, 1933. 

C. POSTIXG LABOR PROVISIONS 

Section 1. Every member of the Division shall prominently post 
in the work rooms of his establishment or establishments copies of 
Articles I, III, and IV of this Chapter together with copies of 
Article IV of Chapter I. 

Article IV 

A. LIMITATION AS TO PLAX'i: OPERATION 

Section 1. No member of the Division shall operate his establish- 
ment or establishments in excess of 40 hours per week; provided, 
however, that if the application of this Section should work a hard- 
ship on any member of the Division, such member may appeal to the 
Divisional Authority or the Administrator for such relief as justice 
may require. 



116 

B. USE OF CONTRACTORS 

Section 1. All members of the Division who let out or cause their 
garments to be made by contractors shall file the names and addresses 
of all such contractors as are actually required, with the Divisional 
Authority within thirty days after approval of this Code. Such 
lists shall be revised from time to time. Members shall confine their 
work to such contractors as may be so listed. Members shall not let 
out or cause their garments to be made hj contractors unless such 
contractors agree to conform to the provisions of this Code as to 
hours and wages in the course of the performance of such contracts. 
Members shall pay such contractors not less than an amount sufficient 
to enable such contractors thus to conform to the provisions of this 
Code as to hours and wages, together with an allowance for the 
contractor's overhead. 

C. PERFORMANCE OF FACTORY OPERATIONS BY MEMBERS 

Section 1. Any employer of the Division who directly or in- 
directly works in his own factory in the capacity of a manufactur- 
ing employee shall comply with the provisions of Article III-A of 
this Chapter. 

D. homework 

Section 1. No member of the Division shall permit or allow the 
processing or manufacturing of any of his products except within 
his own plant or plants and/or the plants of registered contractors, 
as provided in Article IV-B. In particular, but without limitation, 
it is hereby provided that no part of such processing or manufac- 
turing shall be done in the homes of any employees. 

e. unsafe premises 

Section 1. No member of the Division shall cause or permit any 
work to be done in tenement houses, basements, or any unsanitary 
building or in buildings unsafe on account of fire risks. 

F. USE OF LABELS 

Section 1. The Divisional Authority may, within 60 days after the 
approval of this Code, make recommendations to the Administrator 
regarding 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. 

Article V 

A. COSTS AND SELLING PRICES 

Section 1. Each member of the Division shall compute his own 
individual costs for standard lines on the basis of the cost-accounting 
system provided in Article VII of Chapter I and report the same 
to the Association. From these reports, the Divisional A.uthority 
shall ascertain the cost of the most efficient member of the Division— 



117 

i.e., that representative member of the Division whose cost is lowest — 
and publish such findings to the members of the Division. Such 
findings shall be revised from time to time at reasonable intervals. 
Thereafter no member of the Division shall sell any standard line of 
product below such cost. No member shall initiate a selling price on 
any special line which shall be below his own individual cost of 
production as provided in Article VII of Chapter I. 

Article VI 

A. TRADE PRACTICES 

Section 1. No member of the Division shall offer a cash discount 
which exceeds 8% 10 days, E.O.M. No other discounts whatsoever 
nor any rebates shall be given to any buyers, buying offices, or other 
customers. Goods shipped after the 25th of the month may be billed 
as of the first of the following month. These terms shall not apply 
to Vulcanized Clothing. 

Sec. 2. No member shall depart from the following standard terms 
of sale for Vulcanized Clothing : 

(a) Terms to Jobbers: 3% 10 days; 2% 70 days; net 71 days; no 
post-dating. 

(b) Terms to Retailers : Not more than 8% 10 days, E.O.M. ; net 
thereafter. 

(c) If payments are not made on or before the net due date, there 
shall be a charge for interest at the legal rate. 

(d) No prepayment or allowance of freight shall be made, except 
on shipments of 100 pounds or more. 

(e) No parcel-post or express charges shall be allowed in excess 
of freight allowance applicable to such shipment if shipped by 
freight. 

Sec. 3. No member of the Division shall ship merchandise on 
memorandum or on consignment. 

Sec. 4. The following shall be the standard sizes in the Rainwear 
Division : 

Infants, 2 to 6. Misses, 14 to 20. 

Girls, 6 to 16. Ladies, 34 to 44. 

Boys, 6 to 16. Men's, 34 to 46. 
Boys (vulcanized) , 4 to 18 

Where Boys sizes 18 to 20 (excluding 18 on vulcanized clothing), 
Ladies' sizes 46 to 52, Men's sizes 48 to 52 are ordered, the selling 
price shall truly reflect the increased cost. 

Sec. 5. No merchandise purchased and shipped in good faith and 
in accordance with the buyer's specifications shall be permitted to 
be returned for credit by any purchaser after five (5) clays from its 
receipt by the purchaser. 

Sec. 6. No order shall be accepted without stipulating the sale 
price, terms, and date of shipment. No sale shall be made by any 
member on any other terms except those expressly set forth in the 
order, contract of sale, or the invoice pertaining to such sale. 

Sec. 7. No member of the Division shall make any allowance or 
discounts for advertising or for payment for space in newspapers, 



118 

magazines, guides, or directories on behalf of any retailer to be used 
in promoting the sale of merchandise by such retailer to the con- 
sumer. The supplying of cuts, matrices, and window cards shall, 
however, not be included in such prohibition. 

Seo. 8. The pirating of styles and designs shall be prohibited. 

Sec. 9. Any violation of any of the provisions of this Code shall 
be an unfair trade practice and subject to the penalties of the Act. 

Aeticle VII 

A. ALTEEATIONS AND AMENDMENTS 

Section 1. Any addition, alteration^ or amendment of this Code 
which has had the approval of a majority of the Divisional Code 
members in number and in volume shall oe presented to the Code 
Authority in accordance with Chapter I, Article III-A, Section 2. 

Approved Code No. 156. 
Registry No. 899—04. 

o 



Approved Code No. 157 
CODE OF FAIR COMPETITION 

FOR THE 

HAIR CLOTH MANUFACTURING INDUSTRY 

As Approved on December 15, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

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

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

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dministrator. 

The White Hgtjse, 

'December 15, 1933. 

20707° 244-157 33 (119) 



December 1, 1933. 
The President, 

The White House. 

INTRODUCTION 

Sir: This is a report on the hearing of the Code of Fair Com- 
petition for the Hair Cloth Manufacturing Industry. 

The hearing was conducted in accordance with the provisions 
of the National Industrial Recovery Act in the North Room of the 
Mayflower Hotel in Washington, D.C., on November 17, 1933. 
Every person who filed a request for an appearance was freely heard 
in public and all statutory and regulatory requirements were com- 
plied with. 

The Code which is attached was presented by duly qualified and 
authorized representatives of the above industry, complying with 
the statutory requirements, as representing 93i/o percent of the 
industry, 

EVIDENCE SUBMITTED 

The industry consists of eleven concerns, who, with the exception 
of one small plant, are members of the Association. The industry 
has invested capital of around two million dollars and in normal 
years has a sales volume of about four million dollars. It is esti- 
mated that the sales volume for 1933 will be about one million dol- 
lars. There are approximately 400 employees in the industry. The 
increase in the number of employees since July 1, 1933, has been 
about 10 percent and the increase in wages about 20 percent. 

RESUME OF PROVISIONS OF THE CODE 

The Code provides for a minimum wage of $17.00 per week for 
forty hours of labor. Shipping, receiving, storeroom employees, 
firemen, and engineers are permitted to work forty-four hours per 
week. Employees on emergency maintenance or repair work will 
be paid one and one third times the normal rate for hours worked 
over forty-four per week. 

Watchmen are to be employed in pairs to work 36 and 4.8 hours 
on alternate weeks, giving them an average week of forty-two hours. 

Provisions have been made to prevent stretch-outs, reclassification 
of employees, and the reduction of Avages for the shorter week. 

Productive machinery in the industry is limited to one shift of 
forty hours per week. 

FINDINGS 

I find that : 

(a) The Code complies in all respects with the pertinent provi- 
sions of Title I of the National Industrial Recovery Act, including 

(120) 



121 

without limitation subsection (a) of Section 7 and subsection (b) of 
Section 10 thereof. 

(b) The Hair Cloth Manufacturers Association is truly represen- 
tative of the Hair Cloth Manufacturing Industry. The By-Laws of 
this association provide no inequitable restrictions to membership. 

(c) The Code is not designed to permit 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 Hair Cloth Manufacturing Industry. 
Respectfully submitted, 

Hugh S. Johnson, 

Adnninistraior. 



CODE OF FAIR COMPETITION 

FOR THE 

HAIR CLOTH MANUFACTURING 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 Hair Cloth Manufacturings Industry, and 
shall be the standard of fair competition for such industry and shall 
be binding upon every member thereof. 

Article II — Definitions 

The term " industry " as used herein includes the manufacturing 
of hair-cloth products and the sale thereof by the manufacturer and 
such branches thereof as may from time to time be included under 
the provisions of this Code. 

The term " Hair Cloth Products " as used herein includes all fab- 
rics woven with horse hair. 

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. 

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

Tlie term " member of the industry " as used herein includes any- 
one engaged in the industrj^ as above defined, either as an employer 
or on his own behalf. 

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

Article III — Hours 

1. No employee shall be permitted to work in excess of fort}'' (40) 
hours in any one w^eek or eight (8) hours in any twenty-four (24) 
hour period unless otherwise specified herein. 

2. The maximum hours fixed in the foregoing section shall not 
apply to : 

(a) Executives, oflice employees, supervisory staff, and outside 
salesmen who receive $35.00 per week or more. 

(122) 



123 

(b) Shipping, receiving, storeroom employees, firemen, and engi- 
neers who shall not work in excess of forty-four (44) hours per 
week. 

(c) Emploj'ees on emergency maintenance or breakdoAvn or repair 
work and protection of life and property. In any such special case, 
a tolerance of 10% shall be allowed. Any hours worked in excess 
of forty-four (44) hours per week shall be paid for at the rate of 
time and one third, and reported to the Code Authority every month. 

(d) Watchmen shall be employed in pairs and shall not work more 
than thirty-six (3G) and forty-eight (48) hours on alternate W'eeks, 
or an average of forty-two (42) hours per week. 

3. The maximum hours of labgr for office employees receiving 
less than $35.00 per week shall be an average of forty (40) hours 
per week over a six (6) week period but in no week during such 
period more than forty-eight (48) hours, 

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

5. Employers of this industry shall not operate productive ma- 
chinery for more than one shift of forty (40) hours per week. 

Article IV — Wages 

1. No employee shall be paid at less than the rate of $17.00 per 
week for forty (40) hours of work. 

2. No employee shall receive for forty (40) hours of labor less 
compensation than he received or would have received as of July 1, 
1933, for not exceeding fifty-four (54) hours per week. 

3. Apprentices and learners for a period not to exceed three (3) 
months shall be paid at the rate of not less than 80% of the mini- 
mum wage herein provided. The total number of apprentices and 
learners employed by any employer of the industry shall not exceed 
5% of the total number of employees employed by such member. 

4. This article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time-rate, piecework, or 
other basis. 

5. Female employees performing substantially the same work as 
male employees shall receive the same rates of pay as male employees. 

Article V — General Labor PRo^^[SIONs 

1. No person under sixteen (16) years of a^e shall be employed 
in the industry, nor anyone under eighteen (18) years of age at 
operations or occupations hazardous in nature or detrimental to 
health. The Code Authority shall submit to the Administrator be- 
fore January 1, 1934, a list of such occupations which, upon his 
approval, shall be deemed hazardous in nature or detrimental to 
health within the meaning of this section. In any State an em- 
ployer shall be deemed to have complied with the age 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 cer- 
tificates or permits, showing that the employee is of the required age. 



124 

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 or restraint, 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 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, ap- 
proved or prescribed by the President. 

6. Within each State this Code shall not supersede any laws of 
such State imposing more stringent requirements on employers regu- 
lating the ages of employees, wages, hours of work, or health, fire, 
or general working conditions 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. To prevent any improper speeding up of work (stretch-outs), 
no employee in the industry shall be required to do any work in 
excess of the practice as to the class of work of such employee 
prevailing on July 1, 1933, unless such increas'' ^s submitted to and 
approved by the Administrator. 

8. No member of the industry may knowingly employ as a learner 
or apprentice any employee who has previously been employed in 
any plant in this industry as a learner or apprentice for more than 
three (3) months. In case a learner or apprentice has not completed 
the three (3) months learning period, he may be employed as a 
learner or apprentice by any other employer for the balance of the 
learning period. 

9. Each employer shall post in conspicuous places on his premises 
full copies of this Code. 

Article VI — Administkatiox 

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. Organization of Code Authority. — (a) The Code Authority 
shall consist of three (3) individuals, selected by the members of the 
Industry, in accordance with a fair method of selection, approved 
by the Administrator, and not more than three (3) additional mem- 
bers without vote (and without expense to the Industry) to repre- 
sent the Administrator or such groups or interests as may be agreed 
upon. 

(b) Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Code Authority 
shall: (1) Impose no inequitable restriction on membership, and (2) 
submit to the Administrator true copies of its articles of association, 
bylaws, regulations, and any amendments when made thereto, to- 
gether with such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 



125 

(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 ma}^ 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 Authorit5^ 

2. The Code Authority shall have the following duties and powers 
to the extent permitted by the Act, subject to the right of the Admin- 
istrator on review to disapprove any action taken by the Code 
Authority. 

(a) To administer and assist in the enforcement of this Code. 

(b) To interpret the provisions of this Code and issue such rules 
and regulations as may be necessary for the proper administration 
of the provisions of this Code. 

(c) To cooperate ,wath the Administrator as a Planning and Fair 
Practice Agency. 

(d) To cooperate with the Administrator in making investigations 
as to the functioning and observance of any provisions of this Code, 
at its OAvn instance or on complaint by any person affected, and to 
report the same to the Administrator. 

(e) To receive and adjust complaints of the alleged violation of 
any of the provisions of this Code. 

(f) To receive from members of the industry, at such times as 
may be prescribed, statistics covering number of employees, wage 
rates. emplo3'ee earnings, hours of work, and such other data as 
may be required by the Administrator. 

(g) To obtain from the members of the Industry such other sta- 
tistics and data as may be necessary for the proper administration 
of this Code, which information is to be collected by an impartial 
agent, acting in a judiciary capacity, with full protection to each 
member as to the confidential nature of the material collected. 

3. Any interested party shall have the right of appeal to the Ad- 
ministrator, under such rules and regulations as he may prescribe, 
in respect to any rule, regulation, or other course of action issuecl 
or taken by the Code Authority. 

4. Members of the Industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority and to 
participate in the selection of the members thereof by assenting to 
and complying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. The 
reasonable share of the expenses of administration shall be de- 
termined 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. 

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 necessary 
for the purposes recited in Section 3 (a) of the Act. 

Article VII — Trade Practices 

1. Every employer shall use a cost-accounting system Avhich coni- 
forms to the principles of and is at least as detailed and complete 



126 

as the uniform and standard method of cost accounting to be pre- 
scribed by the Code Authority and approved by the Administrator. 
Such cost-accounting system shall include as items of cost all direct 
expenses for labor and materials and a proper allowance for over- 
head figured according to plant utilization in the production of 
products covered bv this Code. 

2. No member of the Industry shall sell or exchange any product 
of the Industry at a price lower than his cost determined in accord- 
ance with a uniform and standard method of costing to be adopted 
by the Association and approved by the Administrator. 

3. Members of this Industry shall file with the Code Authority a 
schedule of prices, terms, discounts, and conditions of sale for the 
products of the industry within thirty (30) days after the effective 
date of the Code. Such price lists may be revised only upon five 
(5) days' notice to the Code Authority. The Code Authority shall 
immediately send copies of all price lists so filed to all members of 
the Industry. 

4. Members of the Industry shall not sell their products at other 
prices or on other terms or conditions than set forth in their own 
price list. When any member of the Industry revises his price list, 
any other member of the Industry may revise his price list accord- 
ingly, to become effective on the same date as the revised price list 
first filed. Nothing in this paragraph shall be interpreted to permit 
the promulgation of list prices or the sale of goods at a price below 
the cost of production of the member of the industry issuing the list 
as provided in paragraphs one and two of this article. 

5. Obsolete merchandise and merchandise that must be sold in 
emergencies may be sold at other than the price list or cost of the 
member of the Industry, with the approval of the Code Authority. 

Article VIII — Existing Contracts 

Where the cost of executing contracts entered into by this In- 
dustry prior to June 16, 1933, is increased by the application of the 
provisions of the National Industrial Recovery Act, it is equitable 
and promotive of the purposes of the Act that appropriate adjust- 
ments of such contracts to reflect such increased cost be arrived at 
by arbitral proceedings or otherwise, and the Code Authority is 
constituted the agency to assist in effecting such adjustment. 

Article IX — Unfair 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 product 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 



127 

preparation of any product of the industry, or the credit terms, val- 
ues, policies, or services of any member of the industry, or otherAvise, 
having the tendency or capacity to mislead or deceive customers or 
prospective customers. 

3. Directly or indirectly to give or permit to be given, or offer to 
give, money or anything of value to agents, emj)loyees, or representa- 
tives 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 induce- 
ment to influence their employers or principals to purchase or con- 
tract to purchase from the makers of such gift or offer, or to influence 
such employers or principals to refrain from dealing or contracting 
to deal with competitors. 

4. Maliciously inducing or attempting to induce the breach of 
an existing oral or written contract between a competitor and his 
customers or source of supply, or interfering with or obstructing 
the performance of any such contractual duties or services. 

5. No member of the industry shall secretly offer or otherwise 
make any payment or allowance of a rebate, refund, commission, 
credit, unearned discount, or excess allowance, whether in the form 
of money or otherwise, nor shall a member secretly, or otherwise, 
extend to any customer any special service or privilege not extended 
to all customers of the same class. This provision shall not be inter- 
preted to prohibit the adjustment of legitimate claims. 

6. The offering or giving of prizes, premiums, or gifts in connec- 
tion with the sale of products, or as an inducement thereto, by any 
scheme which involves lottery, misrepresentations, or fraud. 

7. The defamation of competitors by falsely imputing to them 
dishonorable conduct, inability to perform contracts, questionable 
credit standing, or by other false representations or by the falsa 
disparagement of the grade or quality of their goods. 

8. The imitation of trade marks, trade names, slogans, designs, 
styles, brands, or other marks of identification of competitors having 
the tendency and capacity to deceive purchasers or prospective pur- 
chasers. 

9. Canceling in whole or in part, or permitting the cancellation 
in whole or in part, of any contract of sales of any product, except 
for a fair consideration. 

10. Making or giving to any purchaser of any product any guar- 
anty or protection in any form against decline in the market price 
of such product. 

11. Stating in the invoice of any product as the date thereof a date 
later than the date of the shipment of such product, or including in 
any invoice any product shipped on a date earlier than the date of 
such invoice. 

12. Making any sale or contract of sale of any product under any 
description which does not fully describe such product in terms cus- 
tomarily used in the Industry. 

13. Rendering to any purchaser of any product in or in connec- 
tion with the sale of such product any service, unless fair compensa- 
tion for such service shall be paid by such purchaser. 

14. Shipping products on consignment, except insofar as it is neces- 
sary to complete arrangements existing as of the effective date of the 



128 

Code, which arrangement shall be reported in writing to the Code 
Authority. No member of the Industry shall deliver the products 
thereof on consignment except to an affiliated company of such mem- 
ber. An affiliated company shall mean a company in which a mem- 
ber of the Industry has a voting control through the record or equi- 
table title of the voting stock thereof, or has control of such com- 
pany in any other maniier. 

15. The making of false statements or reports, written or oral, re- 
quired pursuant to any of the provisions of this Code or any resolu- 
tion duly adopted by the Code Authority. 

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 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 limitation, to the right of the 
President to cancel or modify his approval of this Code or any con- 
ditions imposed by him upon his approval thereof, 

2. After due notice and hearing this Code, except as to provisions 
required by the Act, may be modified on the basis of experience or 
changes in circumstances; such modifications shall be based on the 
recommendation of the Code Authority or of any interested party 
or group or on the Administrator's own initiative and shall become 
effective on approval by the President. 

Article XI — ^Monopolies, Etc. 

No provisions 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 XII — Effective Date 

This Code shall become effective on the second Monday after the 
date of its approval by the President. 



Approved Code No. 157. 
Registry No. 290-2-18. 



o 



Approved Code No. 158 
CODE OF FAIR COMPETITION 

FOB THE 

STONE FINISHING MACHINERY AND 
EQUmMENT INDUSTRY 

As Approved on December 15, 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 Stone Finishing Machinery and 
Equipment Industry, and hearings having been held thereon and the 
Administrator having rendered his report containing an analysis 
of the said code of fair competition together with his recommenda- 
tions and findings with respect thereto, and the Administrator hav- 
ing found that the said code of fair competition complies in all 
respects with the pertinent provisions of title I of 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, Frankin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report and recommendations, 
and findings of the Administrator and do order that the said code 
of fair competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

A dniinis trot or. 

The White House, 

December 15, 1933. 

(129) 

26904* 244-158 33 



December 6, 1933. 
The President. 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Stone Finishing Machinery and Equipment Industry^ the hearing 
having been held in Washington, November 20, 1933, m accordance 
with the provisions of the National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Factory workers are limited to 8 hours per day and 40 hours per 
week, except during peak periods, when they may work not more 
than 48 hours per week in any 6 weeks in any 6 months' period. 
Time and one half will be paid for all hours in excess of 8 per daj 
or 40 per week. A tolerance of 10 percent over the 40 hours' maxi- 
mum IS permitted for employees engaged in preparation and care 
of plant, machinery, and production facilities, and for stock and 
delivery employees for six weeks in any six months' period. 

The above limitations as to hours do not apply to employees in 
managerial or executive positions, outside service employees, travel- 
ling salesmen, or employees engaged in emergency maintenance or 
emergency repair work. Outside service employees and emergency 
maintenance and emergency repair employees receive time and one 
half over 8 hours per day or 40 hours per week. 

The minimum wage lor factory employees is 40 cents per hour. 
No distinction in wage rates will be made between male and female 
employees. Adjustment of wage rates above the minimum will 
be made. 

A maximum of 40 hours per week is provided for clerical em- 
ployees and the minimum wage will be in accordance with the Presi- 
dent's Reemployment Agreement. Salaries now higher than the 
minimum will not be reduced because of the reduction in hours pro- 
vided in the Code. 

Office boys and girls and messengers will be paid at not less than 
80% of the minimum for clerical employees, and the number of such 
employees, together with apprentices will not exceed 6% of the total 
number of employees of any employer. 

CHILD LABOR 

The minimum age will be 16 years, and no person under 18 will be 
engaged in any hazardous occupation. 

ECONOMIC EFFECT OF THE CODE 

This industry produces stone-sawing machines and other machines 
and equipment for finishing granite, marble, and other building stone 

(130) 



131 

after the stone has been freed from the quarry bed. It has suffered 
severely from lack of building activity, and its sales are only about 
one third of the 1929 total of $6,000,000. However, the industry has 
retained 46% of the number of emploA^ees it employed in 1929, or a 
present total of about 600. 

The reduction in the hourly schedule from approximately 50 hours 

f)er week to 40 hours as provided in the Code increases employment 
ess than 5 per cent because of the above-mentioned program of work 
sharing, but with any increase in building activity it is expected 
that an immediate reemployment of workmen will be effected. 

FINDINGS 

The Administrator finds that: 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act. including, without limita- 
tion, subsection (a) of Section T and suosection (b) of Section 10 
thereof ; and that 

(b) The applicant group imposes no inequitable restrictions on 
admission to membership tnerein and is truly representative of the 
Stone Finishing Machinery and Equipment 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 Kecovery Act. 

It is recommended, therefore, that this Code be approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 



CODE OF FAIR COMPETITION 

FOR THE 

STONE FINISHING MACHINERY AND EQUIPMENT 

INDUSTRY 



Article I — Purpose 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are submitted as a Code of 
Fair Competition for the Stone Finishing Machinery and Equipment 
Industry, and upon approval of the President shall be the standard 
of fair competition for this Industry. 

Article II — Definitions 

The following words are used in this Code with the meanings set 
forth: 

a. " Stone Finishing Machinery and Equipment Industry " or 
" The Industry " is defined to mean the manuiacture for sale of all 
machinery, tools, equipment, accessories, and products applicable to 
the process of finishing granite, marble, and free stones after such 
etones have been freed from the quarry bed; also applicable to the 
process of finishing precast or artificial stone except such machinery, 
tools, equipment, accessories, and products as are specifically in- 
cluded within any other basic Code of Fair Competition which has 
been or may be approved by the President; also the dressing or 
sharpening of pneumatic and hand chisels, quarry drills, and forged 
tools exclusively used in processing granite, marble, freestones, and 
artificial stones. 

(b) "Association " shall mean Allied Stone Equipment & Supply 
Association. 

(c) " Employee " — any person engaged in any phase of the Indus- 
try in any capacity in the nature of employee, irrespective of the 
method of payment of his compensation. 

(d) " Employer " — anyone for whose benefit such an employee is 
BO engaged. 

(e) " Member of the Industry " — any person engaged in the Indus- 
try either as an employer or on his own behalf, who shall be subject 
to this Code. 

(f ) "Apprentice " — a person having no previous experience in the 
manufacture of stoneworking machinery, tools, equipment, acces- 
sories, and supplies, and who is being trained to become competent 
in skilled operations. 

(g) "Act " — The National Industrial Recovery Act. 

(132) 



133 

(h) "The President "—The President of the United States, 
(i) "Administrator " — The Administrator of Title I of the Na- 
tional Industrial Recovery Act. 

(j) " Consumer " — A purchaser for actual or direct use. 

Article III — Hours 

(a) No employee, except as hereinafter provided in exceptions, 
shall be permitted to work in excess of forty (40) hours per week 
or in excess of eight (8) hours per day. 

(b) Exception: During any period of seasonal or peak demand 
any employee described in Paragraph (a) hereof may be permitted 
to work not to exceed forty-eight (48) hours per week in any six 
(6) weeks in any six (6) months' period, provided that time and 
one half shall be paid for all hours worked in excess of eight (8) 
hours in any one day or forty (40) hours in any one week. 

(c) Exception: There shall be a tolerance of ten (10) percent 
adaitional hours over the forty (40) hours per week for any em- 
ployee engaged in the preparation, care, and maintenance of plant, 
machinery, and production facilities, and for stock and shipping 
clerks and delivery employees; provided that such tolerance shall 
not result in such employees working in excess of forty-four (44) 
hours per week in any six (6) weeks in any six (6) months' period. 

(d) Exception: During the period of the day from 6 o'clock 
a.m. until starting time of shop operations, and from the closing 
hour of shop operations until 6 o'clock p.m. and on Saturday, Sun- 
days, and holidays, factory employees (other then mechanics or 
artisans) may be employed as watchmen only, subject to no other 
duty during these hours, provided that the combined hours engaged 
as factory workers and as watchmen shall not exceed forty-eight 
(48) hours in one (1) week of seven (7) days; provided, further, 
that their regular hourly rate as a factory worker shaU be paid for 
the hours engaged as watchmen. 

(e) Exception: The limitations as to hours of labor shall not 
apply to persons in a managerial, executive, or supervisory capacity 
who receive more than $35.00 per week; nor to outside service and 
installation men, commercial traveling salesmen, or night watchmen; 
nor to employees engaged in emergency maintenance or emergency 
repair work; provided that employees engaged in outside service or 
installation work, or emergency maintenance or emergency repair 
work, shall be paid time and one half for all hours worked m excess 
of eight (8) hours in any one day or forty (40) hours in any one 
week. Night watchmen shall not work regularly in excess of rorty- 
nine (49) hours per week. 

(f) No employer shall work anv accounting, clerical, service, or 
sales employee more than forty (40) hours per week on a semi- 
yearly average, nor more than forty-four (44) hours per week in 
any two (2) successive weeks. 

(g) No employee shall work or knowingly be permitted to work 
for a total number of hours in excess of the number of hours pre- 
scribed for each day and week, whether employed by one or more 
employers. 



134 
Article IV — Wages 

(a) Except as otherwise herein provided, the minimum wage that 
shall be paia to any employee shall be forty (40) cents per hour. 

(b) All employees mentioned in paragraph (f) of Article III 
shall be paid at the rate of not less than $15.00 per week in cities 
of over 600,000 population or in the immediate trade area of such 
city; nor less than $14.50 per week in any city of between 250,000 
and 500,00 population or in the immediate trade area of such city; 
nor less than $14.00 per week in any city of less than 250,000 popula- 
tion or in the immediate trade area of such city. 

(c) No employees of the classes mentioned in paragraph (f ) of 
Article III now receiving compensation at a rate in excess of the 
minimum provided in paragraph (b) of this Article IV, shall have 
their weeldy compensation recTuced on account of any reduction in 
the weekly nours of employment to conform with the requirements 
of paragraph (f ) of Article III. 

(d) Apprentices as defined in paragraph (f ) of Article II shall, 
for tne first six months of their employment, be paid at not less 
than eighty (80^ percent of the minimum wage stipulated in para- 
graph {&) of tills Article IV. 

(e) Office boys and girls and messengers shall be paid at not less 
than eighty (80) percent of the minimum wage stipulated in para- 
graph u)) of this Article IV. 

(f) The total number of apprentices, office boys and girls, and 
messengers shall not exceed five (6) percent of the total number of 
employees of any one employer, provided, however, that each em- 

. ployer shall be permitted to have at least two office iDoys or girls or 
messengers or apprentices; 

(g) Where an employee's earnings on piecework, divided by the 
number of hours worKed, produce a result under the minimum wage 
stipulated in Paragraph (a) of this Article IV, such earnings shall 
be so adjusted as to conform with the aforesaid minimum wage. 

(h) The hourly wage rate, the base rates for piecework, and salary 
of all employees receiving more than the minimum rate or salary 
herein provided shall be equitably adjusted if such adjustments 
have not already been made. 

(i) No distinction in rates shall be made between male and female 
employees where the same class of work is performed, regardless of 
whether compensation is calculated on an hourly, weekly, monthly, or 
piecework basis. 

(i) No member of the Industry shall reclassify employees or 
duties of occupations performed by employees so as to defeat the 
purposes of the Act. 

Article V — General Labor Provisions 

1. No person under 16 years of age shall be employed in this In- 
dustry, and no person under 18 years of age shall be employed in 
any hazardous operation. The Code Authority shall determine with- 
in ninety (90) days after the effective date the hazardous operations 
in the Industry and report same to the Administrator. 



135 

2. Emplo3'ees shall have the right to orgai)ize and bargain col- 
lectively through representatives of their own choosing, and shall 
be free from the interference, restraint or coercion of employers of 
labor, or their agents in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection. 

3. No employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor 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. 

6. Within each State, members of the Industry shall comply with 
any laws of such State imposing more stringent requirements regu- 
lating the age of employees, wages, hours of work, or health, fire or 
general working conditions, than under this Code. 

6. Within ten days after the effective date, each employer shall 
post and thereafter maintain in conspicuous places, full copes of this 
Code and any amendments or modifications which may later be 
authorized. 

Article VI — Administration 

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

2. The Code Authority shall consist of five members of the Stone 
Finishing Machinery and Equipment Industry. The Administrator 
may appoint one or more additional members to serve without vote. 

3. Members of the Code Authority shall be elected at a meeting 
of all members of the Industry, such meeting to be called as soon 
as reasonably possible after the approval of this Code by the Presi- 
dent and before the effective date. The meeting shall be called by 
the Allied Stone Equipment & Supply Association and notice thereof 
shall be sent by telegraph or registered mail to every known member 
of the Industr}^ The notice shall specifically state that the vote 
at the meeting may be in person or by proxy. 

4. The members of the Code Authority shall be elected by vote 
of the members of the Industry present in person or by proxy at 
such meeting, based upon : 

(a) One member by a majority vote of members of the Industry 
present in person or by proxy. 

(b) Four members by a 61-percent vote of members of the In- 
dustry present in person or by proxy, weighted on the basis of one 
vote for each $100,000 or fraction thereof of sales of products of 
the Industry during the calendar year 1932, as reported to the 
Secretary of the Allied Stone Equipment & Supply Association; 
provided, however, that each member of the Industry shall have at 
least one vote under this Subsection (b). 

(c) The result, showing the names of members comprising the 
Code Authority, together with its officers, shall be furnished to the 
Administrator prior to the effective date. 



136 

5. ISIenibers of the Code Authority to fill vacancies due to death 
or resignations or because a member thereof has ceased to be con- 
nected with the Industry, shall be elected at meetings of members 
of the Industry called by the Code Authority on notice of not less 
than ten days by mail to all known members of the Industry. At 
such meetings the vote shall be taken in the manner described in 
Section 4 (b) of this Article VI. 

6. The Code Authority shall have the following duties and powers 
to the extent permitted by the Act : 

(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 and/or the Code Author- 
ity. Such information shall be confidential. Each member shall 
send his data to a Neutral Agency designated by the Code Authority, 
in a plain envelope contained in an envelope addressed to the Neutral 
Agency. This Neutral Agency shall assemble all such data and 
present to the Code Authority only the combined totals. Each 
member shall retain copies of his own data to be sent direct by him 
to the Administrator, if required by the latter. Reports submitted 
by the Code Authority to the Administrator shall be in the form 
prescribed and/or approved by him. 

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

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

(d) To coordinate the administration of this Code with such 
Codes, if any, as may be adopted by any subdivision of this Industry, 
or any related Industry, with a view to providing joint and harmoni- 
ous action on all matters of common interest. 

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

(f) To make rules and regulations necessary for the Administra- 
tion of this Code. 

(g) In addition to information required to be submitted to the 
Code Authority, there shall be furnished to government agencies 
such statistical information as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the Act. 

7. (a) Any member of the Industry is eligible for membership 
in the Association and there shall be no inequitable restrictions on 
such membership. 

(b) Any meinber of the Industry may participate in the prepara- 
tion and any revision of and additions or supplements to this Code 
by assuming his share of the responsibility of administering it and 
paying his proper pro-rata share of the cost of creating and admin- 
istering it, either by becoming a member of the Association or by 
paying his proper share of the costs to the Code Authority. There 
shall be no initiation fee for members of the Industry who partici- 
pate only in the Code and do not become members of the Association. 



137 

Articlj: VII — Unfair Practices 

1. For all purposes of this Code the following acts shall consti- 
tute unfair practices and each such act shall be a violation of this 
Code : 

(a) Inducing or attempting to induce by any means any party to 
a contract with a member of the Industry to violate such contract, 
with the purpose or effect of unduly hampering, injuring, or em- 
barrassing competitors. 

(b) Making false or misleading statements or descriptions, false 
advertising, or misbranding products. 

(c) Disseminating, pubrisning, or circulating any false or mis- 
leading information 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 pro- 
duce any product, or to the conditions of employment among the 
employees of any member thereof, having the tendency or capacity 
to mislead or deceive purchasers or prospective purchasers, or the 
tendency injuriously to affect the business of competitors. 

(d) For the purpose of inducing or influencing a sale, making or 
promising to any purchaser or prospective purchaser of any product 
of the Industry, or to any officer, employee, agent, or representative 
of any such purchaser or prospective purchaser, any bribe, gratuity, 
gift, or other payment or remuneration, directly or indirectly. 

(e) For the purpose of inducing or influencing a sale, direct or 
indirect, lavish or excessive' entertainment of any purchaser or 
prospective purchaser of the products of the Industry. 

(f) Obtaining or endeavoring to obtain business by threats or 
coercion. 

(g) Selling or offering to sell shopworn, obsolete, second-hand, or 
rebuilt products of the Industry without filing full description, 
prices, and terms with the Code Authority not less than two weeks 
before such sale or offer for sale, and stating in writing the facts 
and reasons for such proposed disposal. The Code Authority shall 
promptly notify all competitive members of the Industry of the 
description, prices, and terms of such proposed sale. 

(h) Selling or offering to sell any product of the Industrv made 
from any but new material, it being the intention to prohibit the 
sale or offer of sale of any product of the Industry made from mate- 
rial which has theretofore been in use for any purpose whatsoever, 
or which has not been purchased by the vendor as new material. 

(i) Selling or offering to sell, billing, or charging for any sale 
on a quantity basis unless the quantity is definiteljr specified in the 
order and is to be shipped, billed, and charged within ninety (90) 
days and paid for in accordance with the established terms of the 
vendor. 

(j) Guaranteeing against advances and declines in prices, dis- 
counts or terms of sale of the products of the Industry, and giving 
notice to customers or prospective customers in advance of the 
effective date of such changes in prices, discounts, or terms of sale, 
as filed with the Code Authority as provided in Section 1 of Article 
VIII. 



138 

(k) Allowing price reductions or rebates to any purchaser on the 
basis of combining separate orders. 

(1) Accepting or offering to accept old or used products of the 
Industry as payment, in whole or in part, for products of the 
Industry. 

^m) Consigning products of the Industry to a consumer. 

/n) Improperly dating any invoice. 

(o) Changing quotations, except for bona fide changes in speci- 
fications or to correct bona fide errors. 

(p) Storing products of the Industry on the property of any con- 
sumer without making reasonable remuneration for such stora,ge. 

(q) Selling or offering to sell below individual's cost. The Code 
Authority with the approval of the Administrator shall as soon as 
reasonably convenient determine a uniform method of cost account- 
ing to be used by all members of the Industry in arriving at cost. 

(r) Making or offering to make to a purchaser or prospective 
purchaser a guarantee or warrantv more liberal than determined 
from time to time by the Code Authority and approved by the 
Administrator. 

(s) Making adjustments other than those which are strictly within 
the guarantee offered at the time of sale, except with the approval 
of the Code Authority. 

Article VIII — Terms and Prices 

1. Since it has been the generally recognized practice of the 
Industry to sell products on the basis of printed net price lists or 
price lists with discount sheets, and fixed terms of sale, which are 
distributed to the trade, each member of the Industry shall within 
fifteen (15) days after the effective date file with the Code Authority 
his catalogues or descriptive literature of all his products of the 
Industry, with a net price list or a price list and discount sheet as 
the case may be, individually prepared by him, showing his current 
net prices or prices and discounts, maximum resale discounts and 
terms of sale. Sufficient copies and revisions thereof of printed net 
price lists or price lists with discount sheets, and fixed terms of sale 
shall be furnished to the Code Authority tor distribution by it to 
the members of the Industry affected thereby. 

2. Revised net price lists, or price lists with discount sheets, may 
be filed from time to time thereafter with the Code Authority by 
any member of the Industry to become effective upon a date specified 
by such member of the Industry, which date shall be not less than 
five (5^ days after the filing of such revised prices at the office of the 
Code Authority, and copies thereof, with notice of the effective date 
specified, shall be immediately sent to all known members of the 
Industry affected thereby, who may file, if they so desire, revisions 
of their net price lists or price lists with discounts sheets, which 
may take effect upon the date when the revised net price lists or 
price lists with discount sheets first filed shall go into effect. 

3. If the Code Authority shall determine that any member of the 
Industry is not selling his products on the basis of price lists, with 
or without discount sheets, with fixed terms of sale, and that a system 



139 

of Belling on net price lists or price lists and discount slieets should 
be put into effect, the Code Authority shall thereupon notify such 
member of the Industry and such member of the Industry shall, 
within ten (10) days after such notice, file with the Code Authority 
net price lists or price lists with discoimt sheets containing fixed 
terms of sale. Sucn net price lists or price lists with discount sheets 
and terms of sale may be revised in the manner hereinabove provided. 

4. No member of the Industry shall sell or exchange any product 
of the Industry at prices lower or with discounts greater or on more 
liberal terms of sale than the schedule of such member on file at 
the office of the Code Authority as above provided. Each invoice 
shall show in detail the identity of the product and unit price 
charged therefor. 

5. Each member shall advance, as a matter of record for use of the 
membership, credit information the lack of which would otherwise 
jeopardize the best interests of the members with certain customers. 

(a) Customers' accounts with individual members requiring legal 
action for collection and accounts not taken care of for a period of 
ninety (90) days which are still being carried on the books of indi- 
vidual membei-s, and in which every reasonable effort has been 
made by the member to collect, shall be recorded with a Neutral 
Agency designated by the Code Authority and furnished by the 
Neutral Agency to other members upon their request. 

(b) Customers' accounts not settled due to disputed claims shall 
be so recorded with the Neutral Agency, with full information as to 
the nature of such dispute. 

(c) Any member may request from the Neutral Agency such credit 
information as he may desire relative to customers in the trade. If 
no such information is on file with the Neutral Agency, the Neutral 
Agency shall endeavor to obtain such information from members of 
the Industry. Upon receiving such credit information from the 
members, the Neutral Agency shall make it available to the inquiring 
member and make a record of the data, which record shall be always 
open to inspection by the Code Authority and the Administrator. 

(d) Any member advancing false or misleading credit information 
to the said Neutral Agency regarding any customer shall be guilty of 
a violation of this Code. 

6. No member of the Industry shall allow more liberal terms than 
as follows: 

(a) A cash discount not exceeding two percent of the amount of 
the invoice if invoice is paid on or before the tenth day of the month 
following date of invoice. 

(b) The free credit period shall not exceed sixty (60) days from 
date of invoice. Interest at the rate of six (6) percent shall be 
charged on all invoices remaining unpaid beyond the free credit 
period. 

Article IX — General 

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 Section 10 (b) of the Act, from time to time to cancel or modify 
any order, approval, license, rule, or regulation issued under Title I 



140 

of the 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 provisions of this Code as are not required to be included 
therein by the Act may, with the approval of the President, be 
modified or eliminated as changes in the circumstances or exper- 
ience may indicate. It is contemplated that from time to time sup- 
plementary provisions to this Code or additional Codes will be 
submitted for the approval of the President to prevent unfair 
competition in price and other unfair and destructive competitive 
practices and to effectuate the other purposes and policies of Title I of 
the Act consistent with the provisions thereof. 

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

(a^ Promote monopolies or monopolistic practices, 
(b) Premit or encourage unfair competition, 
^c) Eliminate or oppress small enterprises, 
(d) Discriminate against small enterprises. 

4. If any member of this Industry is also a member of any other 
Industry, the provisions of this Code shall apply to and affect only 
that part of the business and employment of such member of the 
Industry which is a part of the Industry covered by this Code. 

Article X — Effective Date of This Code 

This Code shall be in effect on the eleventh day after its approval 
by the President, and shall apply to every person engaged in the 
Industry either as an employer or on his own behalf. 



Approved Code No. 158. 
Registry No. 1399-26. 



o 



Aproved Code No. 159 

CODE OF FAIR COMPETITION 

FOR THE 

DRY AND POLISHING MOP MANUFACTURING 

INDUSTRY 

As Approved on December 15, 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 Dry and Polishing Mop Manufacturing 
Industry, and hearings having been held thereon and the Adminis- 
trator having rendered his report containing an analysis of the said 
code of fair competition together with his recommendations and 
findings with respect thereto, and the Administrator having found 
that the said code of fair competition complies in all respects with 
the pei-tinent provisions of title I of said act and that the require- 
ments of clauses (1) and (2) of subsection (a) of section 3 of the 
said act have been met : 

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

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dminis trat or. 
The White House, 

December 15, 1933. 

20075° 244-159 33 Cl-ll) 



December 4, 1933. 
The President, 

The White House. 

Sir: This is the report on the Code of Fair Competition for the 
Dry and Polishing Mop Manufacturing Industry, submitted by the 
National Polish and Mop Manufacturers Association. 

The public hearing was conducted in Washington, D.C., on Novem- 
ber 23, 1933. Every person who requested an appearance was freely 
heard in accordance with statutory and regulatory requirements. 
The code was presented by duly q^ualified and authorized representa- 
tives of the industry, complying with the requirements as representing 
60 percent of the number of producers and 75 percent of the volume 
of the industry. 

FAIR TRADE PRACTICES 

It was pointed out at the hearing, that it is vital for the industry 
to include a provision against selling below cost. This provision 
is aimed at restricting the prevailing practice of offering mops in 
combination with the products of other industries. In this case 
the mop is sold at a nominal price, usually fictitious and having no 
relation to its true worth. Oftentimes the mop is given away as an 
inducement to buy the other article. The other product usually car- 
ries an excessive mark-up, which remains the same even though the 
consumer may not buy, or even desire, the mop. 

Discriminatory trade practices have caused the industry to re- 
quest a ban on consignment selling because this form of distribution 
has been used as a weapon to drive competitors out of the market. 
In the past, certain manufacturers have consigned large (quantities 
of their merchandise and allowed long credit terms to retail outlets, 
with the agreement that the retailers would discontinue other brands 
of similar merchandise. To avoid a repetition of this, the industry 
has requested that the code completely prevent consignment selling. 

LABOR PROVISIONS 

The provisions having to do with hours of labor are similar to 
those in the Code of Fair Competition for the Soap and Glycerine 
Industry, already approved. This was necessary from the practical 
standpoint, as the great majority of dry mop manufacturers produce 
polishes and waxes in the same plant. It has already been estab- 
lished that the production of these waxes and polishes are under the 
Soap and Glycerine Code. 

The industry is composed of 25 manufacturers, of which 15 are 
members of the association. This group employs a total of 536 per- 
sons at an average wage of approximately 45 cents per hour. It is 
estimated that the remaining firms in the industry, who are not 

(142) 



143 

members of the association, employ approximately 100 additional 
people. No statistics are available showing the wages of this last 
group. 

The industry has been operating under the terms of the Presi- 
dent's Keemployment Agreement which has reduced the hours of 
employees 17% from the 1932 average. The increase in wages 
since June 1933 averages 25% between employees in the highest 
paid plants and those in the lowest paid plants. It is estimated that 
there are now more employees in the industry than there were in 
1929, with a wage slightly in excess of that received 4 years ago. 

In view of the fact that there is a definite feeling among the 
institutions for the blind that they wish to act in accordance with 
the spirit of the National Industrial Recovery Act, the code provides 
for cooperation between the Code Authority and a committee 
established to represent the institutions for the blind. This latter 
committee is to be composed of the Chairman of the Code Com- 
mittee of the American Association of Workers for the Blind, the 
President of this Association, or his representative, and a representa- 
tive from the American Foundation for the Blind. The minimum 
wage and maximum hour provisions of the Code will not apply to 
institutions for the blind which comply with the regulations pro- 
mulgated by this conmiittee in cooperation with the Code Authority 
and approved by the Administrator. 

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 subsection (b) of Sec- 
tion 10 thereof. 

The National Polish and Mop Manufacturers Association is truly 
representative of the Dry and Polishing Mop Manufacturing Indus- 
try and the bylaws of this association provide no inequitable restric- 
tion upon membership. 

Accordingly, I recommend the approval of the Code of Fair Com- 
petition for the Dry and Polishing Mop Manufacturing Industry. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 



CODE OF FAIR COMPETITION 

FOR THE 

DRY AND POLISHING MOP MANUFACTURING INDUSTRY 

Article I — Purpose 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established a& a Code 
of Fair Competition for the Dry and Polishing Mop Manufacturing 
Industry, and shall be the standard of fair competition for such 
industry and shall be binding upon every member thereof. 

Article II — Defikitions 

The term " industry " as used herein includes the manufacture 
and sale by manufacturers of dry and polishing mops, hand polish 
applicators, and dusters, and such branches or subdivisions thereof 
as may from time to time be included under the provisions of this 
Code. 

The term " employee ", as used hereinj includes anyone engaged 
in the industry in any capacity receiving compensation for his 
services, irrespective of the nature or method of payment of such 
compensation. 

The term " employer ", as used herein, includes anyone by whom 
any such emploj^ee is compensated or employed. 

The term " member of the industry " includes anyone engaged in 
the industry, as above defined, either as an employer or on his own 
behalf. 

The term "Association ", as used herein, means the National Polish 
and Mop Manufacturers Association. 

The term " southern states ", as used herein, includes Virginia, 
Kentucky, North Carolina, South Carolina, Tennessee, Arkansas, 
Georgia, Alabama, Mississippi, Louisiana, Texas, and Florida. 

The terms " President ", "Act ", and "Administrator ", as used 
herein, shall mean, respectively, the President of the United States, 
Title I of the National Industrial Recovery Act, and the Admin- 
istrator of said Act. 

Article III — Hours 

A. No employee shall work or be permitted to work in excess of an 
average of 40 hours per week in any six months' period, but in no case 
in excess of 48 hours in any one week, except as follows : 

(144) 



1. Teclinical or professional employees such as chemists engaged 
in their technical or professional capacity who receive more than $35 
per week but not including skilled operating personnel; employees 
in a managerial supervisory, or executive capacity who receive $35 
or more per week ; supervisors or highly skilled workers in continu- 
ous processes where restriction of hours would unavoidably reduce 
production, and who receive $35 or more per week; and outside 
salesmen. 

2. Employees on automotive or horse-drawn passenger, express, 
delivery or freight service, who shall not work or be permitted to 
work in excess of an average of 44 hours per week in any six months' 
period or in excess of 48 hours in any calendar year. 

3. Engineers, firemen, water tenders, and oilers, who shall not work 
or be permitted to work in excess of 48 hours a week. 

4. Watchmen, who shall not work or be permitted to work in excess 
of 56 hours a week. 

5. Emploj'ees on emergency maintenance and repair work, whose 
hours may be unlimited when engaged in such emergencies. 

B. If any employee, except those specified in paragraphs 1 and 4 
of Section A of this Article, works in excess of 8 hours in any 24- 
hour period, or in excess of 40 hours in any calendar w^eek, the wage 
paid for excess hours shall not be less than one and one third the 
regular hourly rate. 

C. If any employee works for more than one employer, no such 
employer or employers shall knowingly permit such employee to 
•work for a total number of hours in excess of the number of hours 
prescribed, and all employers in the industry shall exercise due dili- 
gence to carry out the purpose of this section. 

Abticle IV — Wages 

A. No employee shall be paid less than 321^0 per hour, or in 
southern states less than 300 per hour. 

1. This Article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time-rate, piecework, or 
other basis. 

2. Female employees performing substantially the same work as 
male employees shall receive the same rates of pay as male emploj^ees. 

3. Wage differentials existing prior to June 16, 1933, shall be 
maintained for all employees receiving more than the minimum 
herein prescribed, notwithstanding that the hours worked may be 
hereby reduced. All employers shall report to the Code Authority 
within one month after the effective date of this Code such readjust- 
ment of pay schedules. 

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. 
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 



146 

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 ovs^n choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

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 ; 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 working conditions than under this Code. 

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees so as to defeat the purposes of the 
Act. 

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

Article VI — Administration 

To further effectuate the policies of the Act, a Code Authority 
is hereby constituted to cooperate wdth the Administrator in the 
administration of this Code. 

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of five (5) individuals, or 
such other number as may be approved from time to time by the 
Administrator, to be selected as hereinafter set forth. The Aclmin- 
istrator, in his discretion, may appoint not more than three addi- 
tional members without vote to represent the Administrator or such 
groups or interests as may be agreed upon, without expense to the 
industry. 

(b) Four members of the Code Authority shall be selected by the 
Association from among its membership b}^ ballot, and one member 
shall be selected by the nonmembers. 

(c) The Association shall: (1) Impose no inequitable restrictions 
on membership, and (2) submit to the Administrator true copies of 
its articles of association, bylaws, regulations, and any amendments 
when made thereto, together with such other information as to mem- 
bership, organization, and activities as the Administrator may deem 
necessary to effectuate the purposes of the Act. 

(d) In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with 
the provisions of the Act, the Administrator may provide such 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 ap- 



147 

propriate modification in the method of selection of the Code 
Autnority. 

2. The Code Authority shall have the following duties and powers 
to the extent permitted by the Act, subject to the right of the Admin- 
istrator on review to disapprove or modify any action taken by the 
Code Authority. 

(a) With a view to informing the President and the 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 furnish duly certified reports in 
the form and as required by the Code Authority on production, 
orders, sales, prices, and conditions of employment. The Association 
is hereby constituted the agency for the collection and receipt of 
such reports and for the forwarding of such reports to the Admin- 
istrator ; and all such reports shall be held in strict confidence by the 
Association, except when they shall be required b^' 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 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 Ad- 
ministrator in making investigations as to the functioning and 
observance of any provisions of this Code, at its own instance or 
on complaint of any person affected, and to report the same to the 
Administrator. 

(d) 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 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. 

3. In addition to the information required to be submitted to the 
Code Authority, there shall be furnished to government agencies by 
the Association such statistical information as the Administrator 
may deem necessary for the purposes recited in Section 3 (a) of the 
Act, providing all such requests are accompanied by the signed 
approval of the Administrator and an adequate supply of question- 
naires to be distributed to the members of the industry by the 
Association for the collection and compilation of such statistics. 

4. The Industry recognizes the humane consideration attached 
to products of institutions for the blind, and in order to give con- 
structive assistance and to prevent unfair competition, it is the will 
and purpose of the Industry to cooperate with such institutions. To 
effectuate such purpose, a committee as hereinafter provided, shall 
be recognized by the Code Authority for the purpose of conferring 
with the Code j\.uthority and adjusting all matters arising out of 
the competition of the products of the blind as they afiect this 
industry. This committee shall secure necessary data from institu- 



148 

tions for the blind relative to all matters affecting competition of 
the blind in this industry. The committee shall be made up as fol- 
lows: Chairman of the Code Committee of the American Associa- 
tion of Workers for the Blind, President or his representative of 
the American Association of Workers for the Blind, and a repre- 
sentative from the American Foundation for the Blind. The mini- 
mum wages and maximum hours provisions shall not apply to insti- 
tutions for the blind which comply with the rules and regulations of 
the above committee, after approval by the Administrator. 

Article VII — Trade Practices 

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

1. False Marhing 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 grade, 
quality, quantity, substance, character, nature, origin, size, finish or 
preparation 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 prepara- 
tion of any product of the industry, or credit terms, values, policies, 
or services of any member of the industry, or otherwise, having the 
tendency 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 cus- 
tomers, or to agents, employees, or representatives of competitor's 
customers or prospective customers, without the knowledge of their 
employers or principals, as an inducement to influence their em- 
ployers or principals to purchase or contract to purchase from the 
makers of such gift or offer, or to influence such employers or 
principals to refrain from dealing or contracting to deal with 
competitors. 

4. Interference with Contractual Relations. — Maliciously inducing 
or attempting to induce the breach of an existing oral or written con- 
tract between a competitor and his customer or source of supply, or 
interference with or obstructing the performance of any such con- 
tractual duties or services. 

5. Secret Rebates. — The secret payment or allowance of rebates, 
refunds, commissions, credits, or unearned discounts, whether in the 
form of money or otherwise, or the secret extension to certain pur- 
chasers of special services or privileges not extended to all pur- 
chasers on like terms and conditions. 

6. Giving of Prizes^ Premiums^ or Gifts. — The offering or giving 
of prizes, premiums, or gifts in connection with the sale of products, 
or as an inducement thereto by any scheme which involves lottery, 
misrepresentation, or fraud. 

7. Defamation. — The defamation of competitors by falsely imput- 
ing to them dishonorable conduct, inability to perform contracts. 



149 

?uestionable credit standing, or by olhor false representations or by 
alse disparagement of the grade oi- quality of their goods. 

8. Threats of Lit'igation. — The publishing or circularizing of 
threats of suits for infringement of patents or trade marks or oi any 
other legal proceedings not in good faith, with the purpose of harass- 
ing competitors or intimidating their customers. 

9. Es^onage of Competitors. — Securing confidential information 
concernmg the business of a competitor by a false or misleading 
statement or representation, by a false impersonation of one in au- 
thority, by bribery, or by any other unfair method. 

10. Sales Below Cost. — 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. Such plan shall specify the factors which shall 
be included in determining the costs of eacn member of the Industry. 
Upon approval by the Administrator of such a system of cost ac- 
counting for the Industry, complete advice concerning it shall be 
distributed by the Code Authority to all members of the Industry.. 
Thereafter no member of the Industry shall sell the products of the 
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 (1) to meet competition, 
not instigated directly or indirectly by the party desiring to meet 
such competition, and (2) to meet competition in violation of this 
rule concerning which he has made complaint to the Code Authority 
or any authorized agency thereof, but only pending action thereon, 
and (3) to liquidate stocks of distress merchandise under such con- 
ditions as may be approved by the Code Authority and the 
Administrator. 

11. Published Prices. — Within ten (10) days each member of the 
Industry shall publish to the trade, and file with the Code Authority, 
a price list for all products of the Industry sold or oflFered for sale 
by him, together with the discounts and transportation allowances, 
'\\ any, allowed therefrom, and fixed terms of payment ; which price 
lists shall fully and accurately describe each product as to color, 
treatment and weight of varn, type of individual packaging, and 
the finish of the handle, it included. Revised price lists or revised 
discounts or terms and conditions of sale may be filed and published 
from time to time thereafter by any member of the Industry, pro- 
vided, however, that such revision snail be published and filed with 
the Code Authority at least ten days in advance of the effective date 
thereof. Copies of revised price lists and discounts with notice of 
the effective date specified shall be sent immediately by the Code 
Authority to all known members of the Industry, who thereupon 
may file, if they so desire, revisions of their price lists and/or dis- 
counts, which may become effective upon the date when the revised 
price lists or discounts first filed shall go into effect. 

12. Sales Below Published Prices. — 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 
conditions of sale than the terms and conditions of sale previously 
published and filed by such member with the Code Authority in 



150 

accordance with the foregoing provisions and in effect at the time 
of such sale. 

13. False Invoices. — The making of any false invoice with the 
intent or with the effect of misleading the Code Authority. 

14. Consignment. — The sale or offering of any products of the 
industry on consignment. 

15. Other Practices. — Nothing in this Code shall limit the effect 
of any adjudication by the Courts or holding by the Federal Trade 
Commission on complaint, finding, and order, that any practice or 
method is unfair, providing that such adjudication or holding is not 
inconsistent with any provision of the Act or of this Code. 

Article VIII — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of subsection (b) of Section 10 of the 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 limi- 
tation, to the right of the President to cancel or modify his approval 
of this Code or any conditions imposed by him upon his approval 
thereof. 

2. This Code, except as to provisions required by the Act, may be 
modified on the basis of experience or changes in circumstances, 
such modification to be based upon application to the Administrator 
and such notice and hearing as he shall specify, and to become effec- 
tive on approval of the President. 

Article IX — 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 X — Price Increases 

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

Article XI — Effective Date 

1. The provisions of this Code shall be in effect ten (10) days after 
its approval by the President. 

2. This Code shall terminate when the President or the Congress 
shall declare the Act has ceased to be effective. 



Approved Code No. 159. 
Registry No. 1G09--05. 



o 



Approved Code No. 160 
CODE OF FAIR COMPETITION 

FOR THE 

FUR TRAPPING CONTRACTORS INDUSTRY 

As Approved on December 15, 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 Fur Trapping Contractors Industry, 
and hearings have been held thereon and the Administrator having 
rendered his report containing an analysis of the said code of fair 
competition, together with his recommendations and findings with 
respect thereto, and the Administrator having found that the said 
code of fair competition complies in all respects with the pertinent 
provisions of title I of said Act and that the requirements of clauses 
(1) and (2) of subsection (a) of section 3 of said act have been met: 

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

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dministrator. 
The White House, 

December Jo, 1933. 

27201° 24-l-lCO 33 (151) 



December 13, 1933. 
The President, 

The 'White House. 

Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Fur Trapping Contractors Industry conducted in Wash- 
ington on December 8th and 9th, 1933, in accordance with the 
provisions of the National Industrial Recovery Act. 

The minimum wages provided in this code are forty cents (400) 
per hour when the employer furnishes all board, lodging, traps, and 
other paraphernalia and equipment necessary and generally used in 
successful trapping operations, or fifty cents (500) per hour net. 
On this basis the employee shall provide himself with all necessary 
equipment and his own board and lodging. Apprentice and other 
employees whose primary duty is to prepare and cure pelts shall 
receive not less than fifteen dollars ($15.00) per week. 

Due to the fact that this industry is purely a seasonal one, operat- 
ing only three months in the year, and during this period weather 
conditions may either lengthen or shorten the number of hours 
worked in any one day, no maximum hour provisions are contained 
in the Code. 

No person under sixteen (16) years of age shall be employed or - 
engaged in this Industry. 

This Industry is a comparatively new one. Shortly after the War 
there was a land boom in the State of Louisiana which encouraged 
purchasing of swamp lands for the oil and mineral rights. Shortly 
thereafter it was realized that the trapping of fur animals, primarily 
the muskrat, had become a genuine source of revenue from these 
holdings. 

The owners of the land, most of whom were nonresidents of the 
community, then sought a way to control the fur trapping on their 
property and the system of leasing or licensing land to fur dealing 
lessees was evolved. Under this system the lessees contracted with 
fur trappers for the privilege of trapping on these lands. 

Due to the lack of organization and the general ignorance of these 
fur trapping contractors many abuses have resulted. In the past 
few years the inequitable contracts and abuses thereof have resulted 
in numerous injunctions against trespassers, misunderstandings, and 
occasional open warfare between lessees and the fur trappers. 

In 1928 approximately 7,500 trappers' licenses were issued in the 
muskrat breeding section of Louisiana. In 1932 it is estimated 
approximately 5,000 fur trapping contractors were engaged in the 
industry. These figures do not include apprentices and helpers, and 
no accurate figure is available on this number. In the opinion of 
the Administrator the Code as it now stands by its assurance of 
a fair contract, will cause the number of fur trapping contractors 
to reach the 1928 figure. In addition, it will greatly increase the 
buying power and improve the living standards of those now 
engaged in the industry. 

152 



153 



PINDINGS 



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 Trappers Alliance, the applicant group herein, imposes 
no inequitable restrictions on admission to membership and is truly 
representative of the Fur Trapping Contractors 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 the problems confronting the Inustry and its approval 
as herewith submitted is recommended. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 



CODE OF FAIR COMPETITION ^ 

FOR THE 

FUR TRAPPING CONTRACTORS' INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions shall constitute the Code of Fair 
Competition for the Fur Trapping Contractors' Industry, and shall 
be binding upon every member thereof. 

Article II — Definitions 

Section 1. The term " industry " as used herein is defined to mean 
the trapping by contractors of fur animals where the primary catch 
is Southern muskrat and/or preparing the pelts of said animals by 
said contractors. 

Sec. 2. The term " owner " as used herein is defined to mean all 
those who own lands from which fur animals are captured. 

Sec. 3. The term " lessee " as used herein is defined to include all 
those who lease lands from Avhich fur animals are captured. 

Sec. 4. The term " fur trapping contractor " as used herein is 
defined to include all those who undertake, whether by written or 
oral contract, to perform substantially in its entirety, either person- 
ally or by direct employment on a wage basis, the work of trapping 
fur animals. 

Sec. 5. The term " employer " as used herein is defined to mean any 
fur trapping contractor as defined herein. 

Sec. 6. The term " employee " as used herein is defined to mean 
any person employed by a fur trapping contractor. 

Sec. 7. The terms " President ", "Act ", and "Administrator " as 
used herein shall mean respectively the President of the United 
States, Title I of the National Recovery Act, and the Administrator 
of said Act. 

Article III — Labor Provisions 

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

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

(154) 



155 

(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. Mminntm Wages. — Each employee engaged as a fur trapper 
shall be engaged on either of the following scales, except as otherwise 
herein provided : 

(a) Forty cents (400) per hour and the furnishing by his em- 
ployer of all board, lodging, traps, and other paraphernalia and 
equipment necessary and generally used in successful trapping oper- 
ations; or 

(b) Fifty cents (500) per hour net. On this basis the employee 
shall provide himself with all necessary equipment and with his own 
board and lodging. 

(c) Apprentice and other employees whose primary duty is to pre- 
pare and cure pelts shall receive not less than fifteen dollars ($15) 
per week. 

(d) These minimum wages are not required to be paid to a fur- 
trapping contractor or to individuals employed as fur trappers on a 
percentage basis. 

Sec. 3. Child Labor. — (a) No person under 16 years of age shall 
be employed or engaged in this industry. 

(b) No person under 18 years of age shall be employed at opera- 
tions or occupations which are hazardous in nature or dangerous to 
health. The Code Authority shall submit to the Administrator 
within 30 days after the approval of this Code a list of such occupa- 
tions or operations. 

Sec. 4. No provision in this Code shall supersede any State or 
Federal law which imposes on employers more stringent require- 
ments 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. 5. All employers shall post complete copies of this Code in 
conspicuous places readily accessible to employees. 

Article IV — Administration 

Section 1, There shall be constituted a Code Authority to be se- 
lected as follows: Five persons to be selected by a representative 
vote of fur trapping contractors, at least two of whom shall be fur 
trapping contractors. Not more than three members without vote 
may be appointed by the Administrator. 

Sec. 2. Each trade association directly or indirectly participat- 
ing in the selection or activities of the Code Authority shall (1) 
impose no inequitable restrictions on membership, and (2) submit 
to the Administrator true copies of its articles of association, by- 
laws, regulations, and any amendments when made thereto, together 
with such other information as to membership, organization, and ac- 
tivities as the Administrator may deem necessary 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 may prescribe such 
hearings as he may deem proper ; and thereafter if he shall find that 



156 

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 of the membership thereof and/or of the 
method of selection of the Code Authority, 

Sec. 4. Members of the Industry shall be entitled to participate 
in and share the benefits of the activities of the Code Authority and 
to participate in the selection of the members thereof by assenting 
to and complying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. Such 
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. 

Sec. 5. Nothing contained in this Code shall constitute the mem- 
bers of the Code Authority partners for an}' 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, exer- 
cising reasonable diligence in the conduct of his duties hereunder, 
be liable to anyone for any action or omission to act under this 
Code, except for his own willful misfeasance or nonfeasance. 

Sec. 6. 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 this Code. 

(c) To obtain from members of the Industry sucli 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 may deem necessary for the purposes recited in 
Section 3 (a) of the Act, which information and reports shall be sub- 
mitted by members to such administrative and/or Government agen- 
cies 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 anj^ Government agency. No indi- 
vidual reports shall be disclosed to any other member of the In- 
dustry or any other party except to such governmental agencies as 
may be directed by the Administrator, 

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

(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. 



157 

(f ) To secure from 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 trades and to recommend to the Admin- 
istrator measures for industrial planning, including stabilization of 
employment. 

(i) To support and aid in the enforcement of all State and Federal 
conservation laws. 

Sec. 7. Branches or subdivisions of the Industry, including product 
divisions and/or geographical sections of the Industry, may, when 
approved by the President or his authorized representative, establish 
their own planning and fair-practice agencies, which shall be self- 
governing in respect to conditions or problems relating exclusively 
to said branches or subdivisions, providing that no action of any 
such agency shall be inconsistent with the purposes and provisions 
of this Cocfe or the Act ; and provided further that no supplemental 
agreements, recommendations, or provisions shall be submitted to 
the President by the Code Authorit}^ or planning and fair-practice 
agency without first having been approved by duly recorded votes 
of branches or subdivisions concerned. The method in voting in 
each branch or subdivision shall be fair and equitable and subject 
to the approval of the Administrator, Members of each branch or 
subdivision shall bear their proportionate shares of the expenses of 
maintenance of such branch or subdivision. Application for the 
establishment of any planning and fair-practice agency, and any 
recommendations or reports by such agency when established, shall 
be transmitted promptly to the President or his authorized repre- 
sentative through the Code Authority. 

Article V — Fair Trade Practices 

Section 1. No fur trapping contractor shall enter into any con- 
tract involving the work of trapping fur animals on a percentage 
basis, by or through which, directly or indirectly, he shall receive, 
or retain, less than 70 percent of his catch. Provided, however, that 
if the other party to the contract provides without cost to the con- 
tractor equipment, lodging, medical treatment, or assistants to aid 
in the fulfillment of the contract, the fur-trapping contractor may 
agree to receive less than 70 percent of his catch, but such contract 
shall be subject to the approval of the Code Authority, which ap- 
proval or disapproval shall be subject to review by the Administrator. 

Sec. 2. No fur-trapping contractor shall enter into any contract in- 
volving the work of trapping fur animals which does not provide 
that the division of said catch shall be made by either of the 
following methods : 

(a) All furs, skins, or pelts trapped by the fur-trapping con- 
tractor shall be graded promptly by the fur-trapping contractor, 
and division shall be made by the proper owner or lessee or agent 
thereof, or 



158 

(b) All furs, skins, or pelts shall bo graded by the proper owner 
or lessee, or agent thereot, and division shall be made by the fur- 
trapping contractor, 

(c) Such division by whomsoever effected shall be made on the 
same percentage basis for each respective grade. 

Sec. 3. No fur-trapping contractor shall enter into any contract 
involving the work of trapping fur animals which does not contain 
a provision whereby the contractor retains the right to sell his per- 
centage of the catch in the open market or at public auction or 
otherwise. 

Sec. 4. No fur-trapping contractor shall publish or circulate un- 
justified or unwarranted threats of legal proceedings which tend to 
have the effect of harassing or intimidating competitors. Failure to 
prosecute in due course shall be prima facie evidence that any such 
threat is unwarranted or unjustined. 

Sec. 5. No fur-trapping contractor shall join or participate with 
another contractor who with such contractors constitute a substantial 
number of members of the industry, or who together control a sub- 
stantial percentage of the industry, in any transaction known in law 
as a blacklist, including any practice or device (such as a whitelist) 
which accomplishes the purpose of a blacklist. 

Sec. 6. No fur-trapping contractor shall enter into any contract by 
or through which he shall agree to run more than 250 traps per day. 

Sec. 7. All contract forms entered into or to be entered into by any 
member of the fur-trapping industry shall be approved by the Code 
Authority, subject to review by the Administrator, at the request of 
any party at interest. 

Sec. 8. It shall be the duty of the Code Authority to use its best 
efforts to provide measures preventing poaching, trespassing, or boot- 
legging of pelts, and poaching, trespassing, and bootlegging of pelts 
is hereby declared detrimental and injurious to the fur-trapping in- 
dustry generally. Furthermore, each contractor assenting to this 
Code expressly agrees that in so doing he pledges himself directly to 
aid in every way possible to stamp out from the industry these illegal 
practices. 

Sec. 9. Any fur trapping contractor, who prior to the effective 
date of this Code, entered into a contract, the provisions of which are 
not in conformity with the provisions hereof, shall make a bona 
fide effort to arrive at an equitable adjustment of the terms and 
conditions fixed by said contract; and in the event such effort fails 
to result in a mutually satisfactory adjustment, either party to said 
contract may refer the same for adjustment to the Code Authority 
of the industry, which said Code Authority with the aid and assis- 
tance of the Administrator or his properly designated agent or 
agents shall endeavor to arrive at an equitable adjustment thereof. 

Article VI — General 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of subsection (b) of Section 10 of the Act. from time to 
time to cancel or modify any order, approval, license, rule, or regu- 
lation issued under said Act. 



159 

Sec. 2. This Code, except as to provisions required by the Act, 
may be modified on the basis of experience or changes in circum- 
stances, such modifications 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. 

Sec. 3. No provision of this Code shall be so applied as to permit 
monopolies or monopolistic practices, or to eliminate, oppress or dis- 
criminate against small enterprises. 

Article VII — Effective Date 

This Code shall become effective five days after its approval by the 
President. 



Approved Code No. IGO. 
Registry No. 917-09. 



O 



Approved Code No, 161 
CODE OF FAIR COMPETITION 

FOR THE 

FUR DRESSING AND FUR DYEING INDUSTRY 

As Approved on December 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

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

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

FRANIOLIN D. ROOSEVELT, 
Approval recommended: 
Hugh S. Johnson, 

A dminis trot or. 
The Wihte House, 

December IS, 1033. 

2C'J00°— 33 ( IGl ) 



December 13, 1933. 
The President, 

The White Hoiise. 
Sir : This is a report on the Code of Fair Competition for the Fur 
Dressing and Fur Dyeing Industry as revised ^fter the hearing con- 
ducted in Washington on November 1, 1933, in accordance with the 
provisions of the National Industrial Recovery Act. 

Provisions of the Code as to Wages and Hours 

article iii — hours 

1. No employee shall be permitted to work in excess of thirty- 
five hours in any one week or seven hours in any twenty-four hour 
period except by payment of not less than time and one half for 
overtime; provided, nowever, that during any seven weeks of a six 
months' period (the first period to begin on the effective date of 
this code) employees may work not more than forty hours per week, 
but time in excess of eight hours in any twenty-four during such 
seven weeks' period shall be paid at the rate of time and one half 
for overtime. 

2. From the provisions of paragraph one the following classes 
shall be excepted : 

(a) Watchmen, executives and foremen acting in a purely super- 
visory capacity, outside salesmen, and chemists. 

(b) Engineers, firemen, chauffeurs, and drivers and their helpers, 
who may not work over forty-four hours in any one week except by 
payment of not less than time and one third for overtime. 

(c) Office employees, receiving and shipping clerks shall not work 
more than forty hours per week, averaged over a four week's period, 
except by payment of not less than time and one third for overtime. 

3. The maximum hours fixed in the foregoing sections shall not 
apply to any employee on emergency maintenance or emergency 
repair work involving breakdowns or protection of life or property, 
or any emergency situation which may arise whereby the product 
of the employer may be spoiled or destroyed while in a perishable 
condition, but in such cases the employer may put such product 
through the regular processes into a nonperishable condition, and 
for all such emergency overtime the employee shall be paid at the 
rate of overtime above prescribed for hours worked in excess of 
the maximum hours herein provided. 

4. No employee shall be permitted to work more than six days 
in any seven-day period. 

5. The available work in each shop shall, so far as practicable, 
be equally divided amongst all the employees therein. 

(1G2) 



163 
Article IV — Wages 

1. The following minimum rates of wage shall be paid all em- 
ployees other than those engaged in the rabbit dyeing industry : 

(a) No male employee nineteen years of age and over shall be paid 
at less than the rate of Go cents an hour. 

(b) No male employee over sixteen years but under nineteen 
years of age shall be paid at less than the rate of 45 cents an hour. 

(c) No female employee shall be paid at less than the rate of 
45 cents an hour. 

2. The following minimum rates of wage shall be paid all em- 
ployees of shops or departments engaged exclusively in the dyeing 
of rabbit or coney skins : 

(a) No male employee nineteen years of age and over shall be paid 
at less than the rate of 50 cents an hour. 

(b) No male employee over sixteen years but under nineteen years 
of age and no female employee shall be paid at less than the rate 
of 35 cents an hour. 

3. On or before June 1, 1934, the Code Authority Board, herein- 
after provided for, shall undertake an investigation of the minimum 
wage scales contained herein and submit its report and recommenda- 
tions thereon to the Administrator, who may take such action thereon 
as he may deem necessary. 

4. (a) There shall be no discrimination in wages by reason of sex, 
and where in any case females do substantially the same work, or 
perform substantially the same duties as males, they shall receive 
the same rates of wage. 

(b) Male employees between the ages of sixteen and nineteen 
years, who do substantially the same work or perform substantially 
the same duties as male employees nineteen j'ears of age and over 
shall receive the same rates of wage as male emploj-ees nineteen 
years of age and over. 

(c) This Article establishes a minimum rate of pay, regardless 
of whether an employee is compensated on a time rate, piece work, 
or other basis. 

(d) The wages of unskilled labor receiving in excess of the fore- 
going minimum rates of pay established by this code shall not bo 
reduced. 

5. AVhere employers and employees by collective bargaining have 
entered into or shall enter into valid employer-employee agreements, 
the code authority hereinafter constituted shall from time to time 
require proof of such agreements; and when said agreements shall 
have been proved and filed with said code authority, full recognition 
of the contractual obligations under said agreements shall be ac- 
corded in the administration of this code, subject to the approval of 
the Administrator. 

6. Any division of the industry through its Divisional Planning 
Committee hereinafter provided for, and upon five days' notice to 
each individual member of the Code Authority Board hereinafter 
provided for, may present to the Administrator a schedule of mini- 
mum wages to be paid skilled employees of the division presenting 
such schedule. 



164 

The Administrator within twenty days after said presentment 
shall grant a hearing to all parties at interest, and shall approve, 
disapprove, or modify said schedule or any part thereof. If any 
amendment to this code appears necessary or desirable, the Admin- 
istrator shall promptly act in accordance with the law and the 
regulations provided by the President to so amend. 

Economic Effect of the Code 

Fur dressing and fur dyeing is a service. Kaw skins or pelts 
belonging to others are delivered to dressers and dyers for processing 
and returned to their owners dressed and dyed and ready to be made 
into garments and trimming for garments. The dressers and dyers 
have no ownership whatsoever in the commodity which they service. 

Practically all employees in some of the divisions are organized, 
in others no organization exists, and in others the employees are 
partially organized. In the organized divisions the hourly wage 
scale is extremely high and might seem unreasonably so were it not 
for the fact that the regulation of the business, due to seasonal re- 
quirements and the great number of employees available, is such 
that rarely do pieceworkers have an opportunity to do a full days' 
work. The fact is that the high hourly wage rate does not in any 
way result in a high or even satisfactory weekly pay envelop, yet 
it is generally conceded that the cost of service operations of fur 
dressers or dyers forms a relatively small part of the price of the 
finished garment. 

It is estimated that the effect of this code due to the restrictions of 
hours will be sufficient to reemploy all those attached to the in- 
dustry at the peak of 1929, and the minimum wage scale for unskilled 
employees will add substantially to the wages received by the 
employees generally. 

I believe that this code will be highly beneficial to the fur dressing 
and fur dyeing industry generally, and that its administration will, 
from its inception, accomplish in large and increasing measure the 
purposes of 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 groups impose no inequitable restrictions on 
admissions to membership tnerein and are truly representative of the 
fur dressing and fur dyeing 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 dministrato r. 



CODE OF FAIR COMPETITION 

FOR THE 

FUR DRESSING AND FUR DYEING INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are adopted as a Code of Fair 
Competition for the fur-dressing and fur-dyeing 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 — Definittons 

1. The terms " fur-dressing and fur-dyeing industry " or " the in- 
dustry " as used herein shall be taken to mean the business of dressing 
or dyeing or otherwise processing of all kinds of raw fur skins and 
such related industries as may from time to time be included under 
the provisions of this code. 

2. 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- 

f)ensation. This definition shall include all persons performing any 
abor or doing any work in dressing, dyeing, or otherwise process- 
ing fur skins, including a member of a copartnership or firm, an 
ofiicer, director, or stockholder of a corporation doing such work. 

3. The term " employer " as used herein includes anyone b}^ whom 
such employee is compensated or employed. 

4. The term " member of the industry " includes anyone engaged 
in the industry as above defined, either as an employer or on his own 
behalf. 

5. The terms " President ", "Act ", and "Administrator " as used 
herein shall mean respectiA^ely the President of the United States, 
the National Industrial Recovery Act, and the Administrator of 
said Act. 

6. The term " fancy fur dressers " shall mean all members of the 
industry engaged in the dressing of all kinds of fur skins except 
rabbit skins and skins which require dressino; and dyeing as a 
combination process, such as Hudson seals, Persian lamb, etc., etc. 

7. The term " fancy fur dyers " shall mean all members of the 
industry engaged in the dyeing of all kinds of fur skins, except 
rabbit skins, and including such skins as required dressing and dyeing 
as a combination process, such as Hudson seals, Persian lamb, etc., 
etc. 

(1C5) 



166 

8. Tlie term " dog and long-haired fur dyers " shall mean all 
members of the industry engaged in the dyeing of dog skins and 
long-haired fur skins. 

9. The term " rabbit-fur dressers " shall mean all members of the 
industry engaged in the dressing of-rabbit and cone}^ skins. 

10. The term " rabbit-fur dyers " shall mean all members of the 
industry engaged in the dyeing of rabbit and coney skins. 

11. The term " metropolitan area " shall include only the states 
of Connecticut, New York, New Jersey, and Pennsylvania. 

Article III — Hours 

1. No employee shall be permitted to work in excess of thirty- 
five hours in any one week or seven hours in any twenty-four hour 
period, except b}'^ payment of not less than time and one half for 
overtime; provided, however, that during any seven weeks of a six 
months' period (the first period to begin on the effective date of this 
code) employees may work not more than forty hours per week, but 
time in excess of eight hours in any twenty-four during such seven 
weeks' period shall be paid at the rate of time and one half for over- 
time. 

2. From the provisions of paragraph one the following classes 
shall be excepted : 

(a) A¥atchmen, executives and foremen acting in a purely super- 
visory capacity, outside salesmen, and chemists. 

(b) Engineers, firemen, chauffeurs, and drivers and their helpers, 
who may not work over forty-four hours in any one week except 
by payment of not less than time and one third for overtime. 

(c) Office employees, receiving and shipping clerks shall not work 
more than forty hours per week, averaged over a four weeks' period, 
except by payment of not less than time and one third for overtime. 

3. The maximum hours fixed in the foregoing sections shall not 
apply to any employee on emergency maintenance or emergency 
repair work involving breakdowns or protection of life or property, 
or any emergency situation which may arise whereby the product 
of the employer may be spoiled or destroyed while in a perishable 
condition, but in such cases the employer may put sucn product 
through the regular processes into a nonperishable condition, and 
for all such emergency overtime the employee shall be paid at the 
rate of overtime above prescribed for hours worked in excess of the 
maximum hours herein i^rovided. 

4. No employee shall be permitted to work more than six days in 
any seven-day period. 

5. The available work in each shop shall, so far as practicable, 
be equally divided amongst all the employees therein. 

ArticLiE IV — ^Wages 

1. The following minimum rates of wage shall be paid all em- 
ployees other than those engaged in the rabbit dyeing industry : 

(a) No male employee nineteen years of age and over shall be paid 
at less than the rate of Cj cents an hour. 



167 

(b) No male employee over sixteen years but under nineteen years 
of age shall be paid at less than the rate of 45 cents aE hour. 

(c) No female employee shall be paid at less than the rate of 45 
cents an hour. 

2. The following- minimum rates of wage shall be paid all em- 
ployees of shops or departments engaged exclusively in the dyeing of 
rabbit or coney skins. 

(a) No male employee nineteen years of age and over shall be 
paid at less than the rate of 50 cents an hour. 

(b) No male employee over sixteen years but under nineteen yeara 
of age and no female employee shall be paid at less than the rate 
of 85 cents an hour. 

3. On or before June 1, 1934, the Code Authority Board, hereinafter 
provided for, shall undertake an investigation of the minimum wage 
scales contained herein and submit its report and recommendations 
thereon to the Administrator, who may take such action thereon as 
he may deem necessary. 

4. (a) There shall be no discrimination in wages by reason of 
sex, and where in any case females do substantially the same work, or 
perform substantially the same duties as males, they shall receive the 
same rates of wage. 

(b) Male employees between the ages of sixteen and nineteen years, 
who do substantially the same work or perform substantially the same 
duties as male emplo3'ees nineteen years of age and over shall i^ceive 
the same rates of wage as male emploj^ees nineteen years of age and 
over, 

(c) This Article establishes a minimum rate of pay, regardless of 
wdiether an employee is compensated on a time rate, piecework, or 
other basis. 

(d) The wages of unskilled labor receiving in excess of the fore- 
going minimum rates of pay established by this code shall not be 
reduced. 

5. Where employers and emploj-ees by collective bargaining have 
entered into or shall enter into valid employer-employee agreements, 
the code authority hereinafter constituted shall from time to time 
require proof of such agreements; and when said agreenients shall 
have been proved and filed with said code authority, full recognition 
of the contractual obligations under said agreements shall be accorded 
in the administration of this code, subject to the approval of the 
Administrator. 

6. Any division of the industry through its Divisional Planning 
Committee hereinafter provided for, and upon five days' notice to 
each individual member of the Code Authority Board hereinafter 
provided for, may present to the Administrator a schedule of mini- 
mum wages to be paid skilled employees of the division presenting 
such schedule. 

The Administrator within twentjj^ days after said presentment 
shall grant a hearing to all parties at interest, and shall approve, 
disapprove, or modify said schedule or any part thereof. If any 
amendment to this code appears necessary or desirable, the Adminis- 
trator shall promptly act in accordance with the law and the regula- 
tions provided by the President to so amend. 



168 

Article V — General Labor Provisions 

• 

1. No person under sixteen years of age shall be employed in the 
industry, nor anyone under twenty 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 employee shall be deemed 
to have compliecl 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 oi employers of 
labor, or their ao;ents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

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

4. Employers shall comply with the maximum hours of labor, 
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 
Buch State imposing more stringent requirements on emplo3'^ers regu- 
lating the age of employees, wages, hours of work, or health, fire, or 
general working conditions than under this code. 

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees so as to defeat the purposes of the Act. 

7. Each employer shall post in conspicuous places in his factory 
full copies of this code. 

Article VI — Administration 

1. To further effectuate the policies of the National Industrial 
Recovery Act, a code authority known as the Code Authority Board 
of the Fur Dressing and Fur Dyeing Industry shall be established 
as follows: 

2. The fur dressing and fur dyeing industry shall be classified into 
the following divisions : 

1. The Rabbit Fur Dressers Division. 

2. The Rabbit Fur Dyers Division. 

8. The Fancy Fur Dressers Division. 
4. The Fancy Fur Dyers Division. 

6. The Dog and Long Haired Fur Dyers Division. 

Subject to the approval of the Administrator, additional divisions 
may be organized or existing divisions consolidated upon recommen- 
dation of the planning committees of all the divisions and the Code 
Authority Board. 

3. There shall be elected to the Code Authority Board by members 
of their respective divisions, according to rules adopted by each divi- 
sion and approved by the Administrator, seventeen members thereof, 



169 

as follows: three representatives from each of the above divisiong 
operating factories or plants within the metropolitan area, except the 
Fancy Fur Dyers Division within said area, which shall elect four 
representatives; and one rejiresentative at large shall be elected by 
members of the fur dressing and fur dyeing industry operating fac- 
tories or plants outside the metropolitan area. The President may 
appoint not more than three members in addition thereto, Avithout 
vote. 

4. The Code Authority Board so organized is hereby constituted 
the agency for cooperating with the Administration or the Adminis- 
trator as an administrative agency for the Fur Dressing and Fur 
Dyeing Industry, Such agency may from time to time present to 
the Administrator recommendations based on conditions in the in- 
dustry as they may develop, for the betterment thereof and for tho 
purpose of further effectuating the operation of the provisions of this 
code and the policy of the National Industrial Kecovery Act. 

5. The Chairman of the Board shall be elected from its member- 
ship by a majority vote of the members of the Code Authority Board, 
and the selection thus made shall be subject to the approval of the 
Administrator. When so elected and approved the Chairman of the 
Code Authority Board shall be the presiding and chief executive 
officer of said Board. 

6. Each division of the fur dressing and fur dyeing industry shall, 
by a method approved by the Administrator, elect its own separate 
and distinct divisional planning committee which shall be entitled to 
make recommendations on matters pertaining to the administration 
of this code affecting said division. All such recommendations 
shall be presented in writing by tho division's representatives to 
every member of said Board and if said Board fails to act thereon 
within ten days thereafter, such recommendations shall be deemed 
approved by it. If any recommendations by the Divisional Plannnig 
Committee involving a modification or amendment of this code are 
disapproved by the Code Authority Board, then the Divisional Plan- 
ning Committee presenting such recommendations shall be entitled 
to present the same direct to the Administrator for his approval in 
accordance with law. Each division may carry out the approved 
recommendations of its planning committee subject to supervision 
by the Code Authority Board, all to the end that each division may 
be self-governing in all problems relating exclusively to itself includ- 
ing trade terms and trade practices as well as other administrative 
matters affecting it, but in any event subject to the approval of tho 
Administrator. 

7. In order that the Code Authority Board shall at all times be 
truly representative of the industry and in other respects comply 
with the provisions of the Act, the Administrator may hold sucn 
hearings as he may deem proper; and thereafter if he shall find that 
the Code Authority Board is not truly representative or does not 
in other respects comply with the provisions of the Act, he may 
require appropriate modification or modifications, or take such fur- 
ther action as he may deem necessary. 

8. The Code Authority Board shall have the following duties and 
powers to the extent permitted by the Act, subject to the right of 



170 

the Administrator on review to disapprove or modify any action 
taken by it. 

(a) The Code Authority Board shall administer the code and shall 
maintain all activities pertinent thereto, such as obtaining from 
employers reports requested by the President or his authorized repre- 
sentative in respect to wages, hours of labor, conditions of employ- 
ment, number of emploj^ees, and other matters necessary for the 
effectuation of this Code and Title I of the National Industrial 
Recovery Act. 

In addition to the information required to be submitted to the 
Code Authority Board, 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. 

(b) Members of the industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authority Board 
and to participate in the selection of the members thereof by assent- 
ing to and complying with the requirements of this code and sus- 
taining their reasonable share of the expenses of its administration. 
Such reasonable share of the expenses of administration shall be de- 
termined by the Code Authority Board subject to review by the Ad- 
ministrator, on the basis of such factors as may be deemed equitable. 

(c) No reorganization of the Code Authority Board or reclassifi- 
cation of the divisions in the industry, or modification or amendment 
of the rules and regulations contained in the code, shall be made over 
the dissent of any one of the divisional planning committees, except 
as and where the President may make such reorganization, reclassifi- 
cation, modification, or amendment under the law, without the 
assent of the parties affected. 

(d) Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority Board, 
shall (1) impose no inequitable restrictions on membership and (2) 
submit to the Administrator true copes of its articles of association, 
bylaws, regulations, and any amendments when made thereto, to- 
gether with such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

Article VII — Trade Practices 

The following practices constitute unfair methods of competition 
of the industiT and are prohibited : 

1. False marhing or Branding. — The false marking or branding 
of any product of the industry which has the tendency to mislead or 
deceive customers or prospective customers, whether as to the grade, 
quality, quantity, substance, character, nature, origin, size, finish, or 
preparation of any product of the industry, or otherwise. 

2. Misrepresentation or False or Misleading Adve7'tisiiu/. — The 
making or causing or knowingly permitting to be made or published 
any false, materially inaccurate, or deceptive statement by way of ad- 
vertisement or otherwise, whether concerning the grade, quality, 
quantity, substance, character, nature, origin, size, finish, or prepara- 
tion of any product of tlie industry, or the credit terms, values, poli- 
cies, or services of any member of the industry, or otherwise, having 



171 

the tendency or capacity to mislead or deceive customers or prrv- 
spective customers. 

3. Commerc'ml Bribery. — Directly or indirectly to give or permit 
to be given, or offer to give, money or anything of value to agents, 
employees, or representatives of customers or prospective customers, 
or to agents, employees, or representatives of competitors' customers, 
or prospective customers, as an inducement to influence their em- 
ployers or principals to purchase or contract to purchase from the 
makers of such gift or offer, or to influence such employers or princi- 
pals to refrain from dealing or contracting to deal Avith competitors. 

4. Interference with Cmdroxtual Relations. — Maliciously inducing 
or attempting to induce the breach of an existing oral or written 
contract between a competitor and liis customer or source of supply, 
or interfering with or obstructing the performance of any such 
contractual duties or services. 

5. Secret Rehates. — The secret payment or allowance of rebates, 
refunds, commissions, credits, or unearned discounts, whether in the 
form of money or otherwise, or the secret extension to certain pur- 
chasers of special services or privileges not extended to all pur- 
chasers on like terms and conditions. The giving of unfounded or 
excessive allowances as damages or alleged damages for skins. 

G. Giving of Pnzes.^ Premiwns, or Gifts. — The offering or giving 
of prizes, premiums, or gifts in connection with the sale of products 
or rendering of service, or as an inducement thereto, by any scheme 
which involves lottery, misrepresentation, or fraud. 

7. Defanuition. — The defamation of competitors by falsely imput- 
ing to them dishonoroble 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 ot any 
other legal proceedings not in good faith, with the tendency or effect 
of harassing 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 other unfair method. 

10. Other Unfair Practices. — Nothing in this code shall limit the 
effect of any adjudication by the courts or holding by the Federal 
Trade Commission on complaint, finding, and order that any prac- 
tice or method is unfair, providing that such adjudication or holding 
is not inconsistent with any provision of the Act or of this code. 

Article VIII — Sale Below Cost axd Service Charges 

1. No one engaged in this industry shall dress and/or dye or proc- 
ess any fur skins at a price below cost of production, and each 
employer whether fur dresser or fur dyer, or both, shall submit upon 
request a statement from a certified public accountant recognized by 
the Code Authority Board for the industry as qualified to the effect 
that such manufacturer has a proper accounting system; which state- 
ment, however, may not be accepted as final by the Code Authority 
Board either as to accounting or as to selling below cost. 



172 

2. In order to effectuate the purposes of the Act and to assure the 
maintenance of labor standards, any division of this industry may at 
any time after the effective date of this code submit to the Admini- 
strator, through the Code Authority Board, a schedule of charges 
applicable to services rendered by members of said division, based 
upon the lowest reasonable cost of production. If and when such 
schedule shall be approved by the Administrator and by employers 
of 65% of the employees engaged in the division affected, the rates 
set forth therein for the services specified shall be the minimum 
charge for said services in the industry, and the rendition of services 
for charges below those appearing in such approved schedule shall be 
a violation of this code. Subsequent changes in said schedule shall 
be arrived at in the same manner and shall not be subject to the pro- 
visions of Section 8(c) of Article VI. 

3. Any group of fur dressers or fur dyers, not otherwise bound 
by an approved schedule of charges as contemplated by Article VIII, 
may agree upon a minimum service charge to assure the maintenance 
of labor standards covering any one type of service or a schedule 
comprehending more than one type of service, which shall become 
effective and binding upon the parties to such agreement when ap- 
proved by the Administrator. Any violation of such agreement 
after approval thereof shall be deemed a violation of this code. 
Subsequent changes in said schedule shall be arrived at in the same 
manner and shall not be subject to the provisions of Section 8(c) 
of Article VI. 

Article IX — Kegistration and Marking of Products 

The Code Authority Board shall assign to each employer engaged 
in this industry assenting to and complying with the provisions of 
this code an N.R.A. insignia and separate registry number; on and 
after the effective date of this code all fur skins dressed, dyed, or 
otherwise processed by an employer shall bear a nonremovable 
stamp, seal, or impression, giving the number assigned to such em- 
ployer by the Code Authority iBoard. The Administrator upon 
recommendation of the Code Authority Board, or upon his own 
motion after due notice and hearing thereon, may revoke the assign- 
ment of any such N.R.A. insignia to any employer in the industry 
xipon satisfactory proof that such employer has violated the terms 
or provisions of this code. 

No firm engaged in the dyeing division shall process any skin 
which does not bear such N.R.A. registration number unless a stamp 
indicating the country of origin shall show that it was not dressed 
in the United States. 

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 



173 

Presklont to cancel or modify his approval of this code or any con- 
ditions imposed by him iii)on 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, 
sucli modification to be based upon application to the Administrator 
and such notice and hearing as he shall s])ecify, and to become effec- 
tive on approval of the President. 

Article XI — Moxofolies, Etc. 

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

Article XII — Effective Date 

This code shall become effective on the tenth day after its approval 
by the President. 

Approved Code No. 161. 
Registry No. 911-28. 

o 



Approved Code No. 162 
CODE OF FAIR COMPETITION 

FOR THE 

DOMESTIC FREIGHT FORWARDING INDUSTRY] 

As Approved on December 18, 1933 

BY 

PRESIDENT ROOSEVELT 



E xecu tive 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 Domestic Freight Forwarding Industry, 
and hearings having been held thereon, and the Administrator hav- 
ing rendered his report containing an analysis of the said Code of 
Fair Competition, together with his recommendations and findings 
with respect thereto, and the Administrator having found that the 
said code of fair competition complies in all respects with the perti- 
nent provisions of title I of said act, and that the requirements of 
clauses (1) and (2) of subsection (a) of section 3 of said act have 
been met : 

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

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

A dtninistrator. 

The White House, 

December 18, 1933. 

26901—83 (175) 



December 6, 1933. 

The President, 

The 'White House. 
Sir: This is a report on the Code of Fair Competition for the 
Domestic Freight Forwarding Industry of the United States, on 
■which the hearing was conducted in Washington on the 17th of 
October 1933, in accordance with the provisions of the National 
Industrial Recovery Act. 

PROVISIONS OF THIS CODE A8 TO WAGES AND HOURS 

Maximum hours for employees are established as follows : General 
office clerks — forty (40) hours in any one week. Local station 
and/or platform clerks or laborers — forty-eight (48) hours per week, 
averaged over any six (6) weeks' period. No employee is permitted 
to work more than twelve (12) days in any fourteen (14) day period. 

No freight-house laborer to be paid at less than at the rate of forty 
(40^) cents per hour. Office boys, messengers, sorting or pulling 
clerks to be paid at the rate of two dollars ($2.00) per day of eight 
(8) hours. Junior Clerks to be paid at the rate of two dollars and 
fifty cents ($2.50) per day of eight (8) hours. Senior Clerks to be 
paid not less than at the rate of three dollars and seventy-five cents 
($3.75) per day of eight (8) hours. All employees who work in 
excess of ten (10) hours in any one day shall be paid time and one 
half their normal hourly rate of pay for such excess. 

Employment of any person under sixteen (16) years of age and 
pny one under eighteen years (18) of age at occupations hazardous 
in nature or dangerous to health is prohibited. 

ECONOMIC EFFECT OF THE CODE 

The Domestic Freight Forwarding Industry represents an excep- 
tion in the present depression in that it has added to its personnel 
and expanded steadily from year to year. Its personnel increased 
about fifty-five (55%) percent from 1929 to Julv 1933. There was 
a further increase in personnel of eighteen and four tenths (18.4%) 
percent and an increase in pa^ roll of about fourteen and seven 
tenths (14.7%) percent following compliance with the President's 
Reemployment Agreement. As a result of this Code, these gains 
will be consolidated and further improved. 

Through the provisions of this Code the Industry has an oppor- 
tunity to control the uneconomic practices and abuses previously 
indulged in by the irresponsible units to the disadvantage of the sub- 
stantial concerns in the Industry. The standardizing and publish- 
ing of rates will remove the unfairness to shippers by reason of the 
past practice of competitors giving more favorable transportation 
costs through secret bargaining for lower rates. 

(176) 



177 

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 
Domestic Freight Forwarding 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. 

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, 

AdTninistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

DOMESTIC FREIGHT FORWARDING 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 Domestic Freight Forwarding In- 
dustry, and shall be the standard of fair competition for this In- 
dustry and shall be binding upon every member thereof. 

Article II — Definitions 

As used herein : 

(a) The term "President" means the President of the United 
States. 

(b) The terms "Act " and "Administrator " mean, respectively, the 
National Industrial Recovery Act and the Administrator of Title I 
of said Act. 

^c) The term " Industry " means and includes the business of con- 
solidating, assembling, and domestic forwarding of freight. 

(d) The term "employee" includes any person engaged in the 
Industry in any capacity receiving compensation for his services 
irrespective of the nature or method of payment of such compen- 
sation. 

(e) The term " employer " includes anyone by whom any such em- 
ployee is compensated or employed. 

(f) The term "member of the Industry" includes anyone en- 
gaged in the Industry either as an employer or on his own behalf. 

(g) The term " member of the Code " includes any member of the 
Industry who shall expressly assent to this Code. 

(h) The term " effective date " means the tenth day after this Code 
shall have been approved by the President of the United States. 

(i) Population for the purposes of this Code shall be determined 
by reference to the 1930 Federal Census. 

Article III — Hours 

1. No local station and/or platform clerk or laborer shall be per- 
mitted to work in excess of an average of forty-eight (48) hours 
per week during any six (6) week period. 

2. No general office clerks shall be permitted to work in excess 
of forty (40) hours in any one week. 

3. No employee shall be permitted to work more than twelve (12) 
days in any fourteen (14) day period. 

(178) 



179 

4- No employer shall knowingly engage any employee for any time 
which when totaled with that already performed with another em- 
ployer, or employers, exceeds the maximum permitted herein. 

5. Any employer who does the work of an employee subject to the 
provisions of this Article shall be subject to the provisions of this 
Code as to hours of labor. 

6. The provisions of this Article shall not apply to persons 
employed as solicitors, or employed in an executive or managerial 
capacity who earn not less than thirty dollars ($30.00) per week, in 
cities of less than 250,000 population, or in cities of 250,000 popula- 
tion or more, not less than thirty-five dollars ($35.00) per week. 

Article IV — Wages 

1. No freight house laborer shall be paid at less than the rate of 
forty (40) cents per hour. 

2. No office boy, messenger, sorting or pulling clerk shall be paid 
less than at the rate of two dollars ($2.00) per day of eight (8) hours. 

3. No Junior Clerk shall be paid less than at the rate of two dollars 
and fifty cents ($2.50) per day of eight (8) houi-s. 

4. No Senior Clerk shall be paid less than at the rate of three 
dollars and seventy-five cents ($3.75) per day of eight (8) hours. 

6. All employees who work more than ten (10) hours in any one 
(1) day shall be paid one and one half (iy2) times their normal 
hourly rate of pay for all time worked in excess of ten (10) hours 
in any one (1) day. 

6. 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. 

7. Unless an equitable adjustment of all wages above minimum 
has been made since June 16, 1933, there shall be such an equitable 
adjustment, and to that end, within thirty (30) days from the 
approval of this Code, the Code Authority shall submit for the 
approval of the Administrator a proposal for adjustment in wages 
above the minimum. Upon approval by the Administrator, after 
such hearing as he may prescribe, such proposal shall become bind- 
ing as a part of this Code; provided, however, in no event shall 
hourly rates of pay be reduced. 

8. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a 
wage of not less than 80% of 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 of any employer shall not exceed 5% of the total employees 
of any such employer. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed in 
the Industry. No person under eighteen (18) years of age shall be 



180 

employed at operations or occupations which are hazardous in nature 
or dangerous to health. The Code Authority shall submit to the 
Administrator within thirty (30) days a list of such operations or 
occupations. In any State an employer shall be deemed to have 
complied with this provision as to age if he shall have on file a 
certificate or permit duly issued by the Authority in such State 
empoAvered to issue employment or age certificates or permits show- 
ing that the employee is of the required age. 

2. In compliance with Section 7 (a) of the Act it is provided: 

(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 -organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

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

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

3. No employer shall reclassify employees or duties of occupa- 
tions performed for the purpose of defeating the provisions of the 
Act or of this Code. 

4. 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 pro- 
tection, than are imposed by this Code. 

5. All employers shall post complete copies of this Code in con- 
spicuous places accessible to ei^.ployees. 

6. Female employees performing substantially the same work as 
male employees shall receive the same rate of pay as male employees. 

Article VI — Organization 

CODE AUTHORITY 

A Code Authority is hereby constituted to cooperate with the 
Administrator in the administration of this Code. 

1. (a) The Board of Directors of the Domestic Freight Forwarding 
Association, as a body, shall constitute the Code Authority, but shall 
not number more than ten (10) voting members to which may be 
added, if the Administrator so determines, an additional voting 
representative from the members of the Industry who are not 
members of the Domestic Freight Forwarding Association, the 
method of whose selection shall be subject to the approval of the 
Administrator. 

(b) In addition to membership as above provided, there may 
be not more than three (3) members, without vote, to be appointed 
by the Administrator. Such members are to be appointed for terms 
of from six (6) months to one (1) year. The terms of such mem- 
bers shall be so arranged that they do not expire at the same time. 



181 

2. The Domestic Freight Forwarding Association and any other 
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 articles of association, bylaws, regulations, and any 
amendments when made thereto, together with such other informa- 
tion as to membership, organization, and activities as the Adminis- 
trator 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 
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 ap- 
propriate modification in the method of selection of the Code 
Authority, or any sub-Code Authority. 

4. Members or 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 member or members thereof by as- 
senting 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 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. 

5. Nothing contained in this Code shall constitute the members 
of the Code Authority partners for any purpose. Nor shall any 
member of the Code Authority be liable in any manner to anyone 
for any act of any other member, officer, agent, or employee of the 
Code Authority. Nor shall any member of the Code Authority be 
liable to anyone for any action or omission to act under the Code, 
except for his own willful misfeasance or nonfeasance. 

6. No decision of the Code Authority shall be made without the 
favorable vote of seventy percent (70%) of the members of the 
Code Authority. 

POWERS AND DUTIES OF THE CODE AXJTHOBITT 

7. The Code Authority shall have the following powers and duties 
to the extent permitted by the Act, subject to the right of the 
Administrator, on review, to disapprove 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, m 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 meet- 
ings when held, and such other information as to its activities as 
the Administrator may deem necessary to effect the pui*poses of 
the Act. 

(b) To obtain from members of the Industry reports in respect to 
wages, hours of labor, conditions of employment, and other matters 



182 

pertinent thereto in order that the President may be kept informed 
with respect to the observance of the Code, and to make such 
reports available to the Administrator. 

(c) To make recommendations to the Administrator for modifica- 
tions of the Code. 

(d) To receive complaints of violations of this Code, make 
investigations thereof, provide hearings thereon and adjust such 
complaints, and bring to the attention of the Administrator for 
prosecution, recommendations, and information relative to unadjusted 
violations. 

(e) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein and to pay such trade associations and agencies the cost 
thereof, provided that nothing herein shall relieve the Code 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. 

(f ) If the Administrator shall so rec^uire, to create as an agency 
of the Code Authority, a Joint Industrial Kelations Board, consist- 
ing of an equal number of representatives of employers and 
employees, and an impartial chairman elected by the members of 
the Board, to deal with all matters in the Code relating to hours, 
wages, and general labor provisions. The designated employees 
representatives shall be truly representative of the employees of the 
Industry. 

(g) To cooperate with the Administrator in regulating the use 
of the N.R.A. Insignia solely by those employers who have agreed 
to, and are complying with, this Code. 

(h) To establish or designate an agency on planning and fair 
practice which shall cooperate with the Code Authority in develop- 
ing fair inter and intra trade practices, and the stabilization of 
employment. 

(i) The Code Authority shall, as soon as possible after the effec- 
tive date hereof, appoint three (3) individuals who shall, jointly 
with three (3) individuals appointed by any other Transportation 
Code Authority, hear and determine, subject to the approval of the 
Administrator, any question which may be referred to them by either 
the Code Authority of this Code or any other Transportation Code 
Authority for adjudication. In case such joint committee fails or 
refuses to decide within ten (10) days any question submitted, the 
matter shall be referred to the Administrator for final disposition. 

8. 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 Admin- 
istrator may deem necessary for the purposes recited in Section 3 (a) 
of the National Industrial Recovery Act. 

AR-ncLE VII — Rates and Tariffs 

1. The Code Authority shall appoint committees on rates, tariffs, 
charges, and terminal rules and regulations for each freight service 
movement. Each committee shall have full authority to investigate 
into and make recommendations to the Code Authority for the par- 



183 

ticular freight service movement. Each of such committees shall 
consist of representatives of each member of the Industry who con- 
ducts business in all railroad freight association territories of the 
United States and of representatives of each other member of the 
Industry who operates in the particular freight service movement 
under review. 

If the Code Authority shall find that such rates and tariffs are 
fair and reasonable and in the interest of fair competition and are 
not more than the rates and tariffs of common carriers, prescribed 
by or on file with the Interstate Commerce Commission for the same 
or similar services, then such approved rates and tariffs shall become 
binding on all members of the Industry on their effective date. Due 
opportunity for a hearing, however, shall be afforded by the Code 
Authority to dissenting members of the Code, who, prior to the ef- 
fective date of the recommended rate, tariff or charge, file protest 
thereon with the Code Authoritv. 

All decisions and findings of the Code Authority in the matter 
of rates, tariffs, charges, and terminal rules and regulations relating 
thereto, shall be subject to the right of the Administrator on his own 
motion or on complaint filed, to review, suspend or cancel any such 
decision or finding. 

Article VIII — Registoation 

Each member of the Industry shall within thirty (30) days after 
the approval of this Code register with the Code Authority a list 
of his officers, places of business, and freight service movements, and 
submit evidence of compliance with this Code and such other con- 
ditions as shall hereafter be approved by the President after such 
notice and hearing as he shall prescribe. After the said expiration 
of the said thirty (30) days, the conduct of such domestic freight 
forwarding business without such registration with the Code Au- 
thority, is declared an unfair competitive practice and in violation 
of this Code. 

Article IX — Unfair Trade Practices 

1. For all purposes of the Code the acts described in this Article 
shall constitute unfair practices. Any member of the Industry who 
shall directly, or indirectly, through any officer, employee, agent, or 
representative, knowingly use, employ, or permit to be employed, any 
of such unfair practices shall be guilty of a violation of the Code. 

(a) Assessing or collecting less than the rates or charges approved 
under the terms of Article VII of this Code ; or granting or allowing 
any rebate or concession and/or using any subterfuge to defeat such 
approved tariffs. 

(b) Contracting, either in writing or orally, with any customer 
for the transporting of merchandise, or giving service in relation to 
the same, for any given period of time. 

(c) Willful misrepresentation or defamation of another member's 
services, methods, personal or financial standing. 

(d) Giving, permitting to be given, or offering to give, anything 
of value for the purpose of influencing or rewarding the action of any 



184 

employee or agent of another in relation to the business of the em- 
ployer of such employee or the principal of such agent without the 
knowledge of such employer or principal. 

(e) Maliciously attempting to induce the breach of an existing con- 
tract between a competitor and his employees ; or willfully interfer- 
ing with or obstructing performance of such contractual duties or 
services. 

2. Within ten (10) days from the effective date hereof, the Code 
Authority shall prepare and submit to the Administrator, a list of 
specific unfair competitive practices within the Industry. Upon ap- 
proval thereof by the President after such notice and hearing thereon 
as the Administrator may specify, such unfair competitive practices 
so listed shall become parts of this Code. 

Article X — General 

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

2. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of subsection (b) of Section 10 of the Act, from time to time 
to cancel or modify any order, approval, license, rule, or regulation 
issued under Title I of said Act, and specifically, but without lim- 
itation, 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. This Code, except as to provisions required hj the Act, may be 
modified on the basis of experience or changes in circumstances, such 
modification to be based upon application to the Administrator 
and such notice and hearing as he shall specify, and to become effec- 
tive on approval of the President. 

4. This Code shall continue in effect for the period provided in the 
Act, unless sooner terminated in accordance with the law in such case 
made and provided. When so terminated all obligations and liabili- 
ties under the Code shall cease. 

5. This Code shall become effective upon the tenth day after this 
Code shall have been approved by the President of the United 
States. 

Approved Code No. 162. 
Registry No. 1411-25. 

o 



Approved Code No. 163 
CODE OF FAIR COMPETITION 

FOR THB 

WHOLESALE AUTOMOTIVE TRADE 

As Approved on December 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Wholesale Automotive Trade, and hear- 
ings having been held thereon and the Administrator having rendered 
his report containing an analysis of the said Code of Fair Com- 
petition together with his recommendations and findings with re- 
spect thereto, and the Administrator having found that the said 
Code of Fair Competition complies in all respects with the pertinent 
provisions of Title I of said Act. and that the requirements of 
clauses (1) and (2) of subsection (a) of Section 3 of the said Act 
have 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. Johnsojst, 

A dminis tra tor. 
The WnrrE House, 

Deceinber 18, 1933. 

(185) 



27504°— 296-4 33 



December 9, 1933. 
The President, 

The 'White House. 

Sir: The proposed Code of Fair Competition for the Wholesale 
Automotive Trade was submitted to the Administrator on August 9, 
1933, by the Motor and Equipment Wholesalers Association, Incor- 
porated, in cooperation with the National Standard Parts Associa- 
tion, the National Automotive Parts Association, the Automotive 
Electric Association, the Automotive Engine Rebuilders Association, 
and the National Wheel and Rim Association, representing approxi- 
mately 70% of the total volume of sales and members of the Trade. 

The Hearing was conducted in Washington on October 21, 1933, 
and the Code was revised during the recess of this Hearing and is 
submitted in its present form for approval. Every person who re- 
quested an appearance was properly heard in accordance with statu- 
tory and regulatory requirements. 

The Trade is nation-wide in character and has had a large increase 
in number of establishments in the past few years as indicated by 
the figures submitted showing 2,503 wholesale outlets in 1929 com- 
pared with more than 5,000 at the present time with a correspond- 
ing increase in the number of persons employed from 32,062 in 1929 
to 63,500 in 1932. It supplies replacement parts, accessories, service 
tools, equipment, and products to more than 200,000 outlets for main- 
taining and servicing the more than 20,000,000 motor vehicles which 
are now in use. 

During the past four years the Trade experienced an indicated 
decline in sales of between 40% and 50%. Over this same period, 
according to figures submitted by the Trade, the unit sale dropped 
from $16.46 to $3.69. This has resulted in maintaining the numoer 
of employees per establishment in spite of the decline m volume of 
business. 

It is estimated that, giving due consideration to reemployment 
already effected, the Labor provisions in this Code will result in 
reemployment of more than 6,000 workers and a proportionate in- 
crease in payroll. 

Article I — Definitions 

Accurately defines specific terms used in the Code. 

Article II — ^Wages 

The minimum wage for all employees, except office, salaried, and 
handicapped employees and learners and apprentices, is at the rate 
of 40 cents per hour. The minimum wage for office or salaried em- 
ployees is $15.00 per week in cities of over 500,000 population, and 
$14.00 in cities of less than 500,000 population or in the immediate 

(186) 



187 

vicinity thereof. Handicapped persons shall be paid not less than 
80% of the minimum wage subject to certificate authorized by the 
United States Department of Labor. Learners and apprentices 
shall be paid not less than 80% of the minimum wage and they 
shall not exceed 5% of the total number of employees. The mini- 
mum wage is established irrespective of the method of compensation 
for all classes of emploj'ces. Provision is made for equitable adjust- 
ments in all pay schedules of employees above the minimum and 
female employees shall receive the same pay as male employees for 
similar work. 

Article III — Houes 

Employees, excepting executive, administrative, and supervisory 
employees receiving not less than $35.00 per week, and traveling and 
commissioned sales people, are limited to a maximum of 44 hours 
per week and 8 hours per day, except that for two weeks in each 
six months' period for inventory purposes, the maximum shall be 48 
hours per week. 

Article IV — Child Labor 

Provides that no person under sixteen years of age may be em- 
ployed and no person under eighteen years of age may be employed 
in a hazardous occupation. 

Article V — Prices 

Provides for a uniform system of cost accounting subject to 
variations necessary to meet conditions affecting any individual 
member of the Trade. Provides further, that no member of the 
Trade shall sell below his individual cost. 

Article VI 

Provides that a committee consisting of representatives of the 
Code Authority of the Trade, the National Automobile Chamber of 
Commerce, the Automotive Parts and Equipment Manufacturing 
Industry, and the Motor Vehicle Retailing Trade shall make a com- 
plete study of alles^ed unfair and discriminatory practices in the 
Trade. The committee shall report its findings to the Adminis- 
trator within ninety days from the date of approval of this Code. 
If, upon the basis of such report, the Administrator shall find that 
such unfair and discriminatory practices do exist, the provisions 
for maintenance of resale schedules of branded or trade marked mer- 
chandise set forth in this Article shall become effective; provided, 
however, that the Administrator may make such modification as may 
be indicated by the facts found and recommendations made. 

Article VII — Trade Practice Ritles 

Sets forth Fair Trade Practices for the Trade. 



188 

Akticle VIII — Organization and Procedure 

Establishes a Code Authority consisting of a specified number of 
representatives of the Associations which submitted this Code and 
such additional representatives as may be selected to represent inter- 
ests not members of such Associations. The Administrator may 
designate not more than three representatives to participate in the 
conferences of the Code Authority. Provides for obtainins statistics. 

Article IX — Amendments 

Sets forth provisions respecting modification and amendments, 
provision required in Section 10 (b) of Title I of the National 
Industrial Recovery Act. 

Article X — General 

Sets forth the mandatory provisions respecting right of employees 
to organize and bargain collectively and a provision that no member 
of the Code shall be held to have consented to any modification 
thereof or to any provision or interpretation of the National Indus- 
trial Recovery Act if declared unconstitutional by the Supreme 
Court of the United States. Defines the effective date. 

FINDINGS 

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, and that; 

(b) The Associations which submitted this Code together with 
those persons who participated in its subsequent revisions are truly 
representative of the Wholesale Automotive Trade and their Bylaws 
contain no inequitable restrictions on membership, and that; 

(c) The Code is not designed to promote monopolies or to elim- 
inate or oppress small enterprises and will not operate to dis- 
criminate against them and will tend to effectuate the policy of Title 
I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be approved. 
Respectfully, 

Hugh S. Johnson, 

A dminis trator. 



CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE AUTOMOTIVE TRADE 

To effectuate the policy of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code 
of Fair Competition for the Wholesale Automotive Trade, and shall 
be binding upon every member thereof. 

Article I — Definitions 

The terms " wholesale automotive trade " and " trade " as herein 
used shall mean the selling of automotive merchandise to retailers 
by any person, whether such person purchases or manufactures such 
merchandise. The terms shall likewise include the machining or 
secondary processing of automotive merchandise, such as cylinder 
reboring, piston grinding, piston pin fitting, or the reconditioning, 
repairing, or installing of any component part or unit of equip- 
ment by one who sells as aforesaid. 

The term " member of the trade " shall mean anyone engaged in 
the wholesale automotive trade as hereinabove defined, either as an 
employer or on his own behalf. 

The term " member of the Code " as used herein means any '" mem- 
ber of the Trade " who assents to this Code. 

The term " wholesaler " shall mean anyone engaged in the whole- 
sale automotive trade as hereinabove defined who purchases the auto- 
motive merchandise which he sells. 

The term " automotive merchandise " as used herein is defined 
to include any and all parts, equipment, tools, accessories, and sup- 
plies used in the repair and maintenance of motor vehicles (meaning 
automobiles, including passenger cars, trucks, truck tractors, busses, 
taxicabs, hearses, ambulances, and other commercial vehicles for 
use on the highway, excluding motorcycles, fire apparatus, and trac- 
tors other than truck tractors) stationary, internal-combustion en- 
gines and aeronautical and marine engines, excepting tire and 
petroleum products and such other products related to the motor 
vehicle industry as may be specifically covered by any code applying 
to the wholesale distribution thereof duly approved by the President. 

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

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

The term "National Administrative Committee" as herein used 
is a committee of the Wholesale Automotive Trade composed of 
representatives of the following National Trade Associations: The 
Motor and Equipment Wholesalers Association, 400 West Madison 
Street, Chicago, Illinois; The National Standard Parts Association, 
Eaton Tower, Detroit, Michigan; The National Automotive Parts 
Association, 2211 Woodward Avenue, Detroit, Michigan; The Auto- 
motive Electric Association, Cleveland, Ohio ; the Automotive Engine 

(ISO) 



190 

Rebuilders Association, Indianapolis, Indiana; National Wheel & 
Rim Association, Chicago, Illinois. 

The term " President " as used herein means the President of the 
United States. 

The terms "Act " and "Administrator " as used herein mean re- 
spectively Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery. 

Article II — Wages 

The following provisions as to wages are established for whole- 
salers: 

A. (1) Except as provided in Section B of this Article, the mini- 
mum rate of pay that shall be paid to any employee shall be forty 
cents per hour; except that learners and apprentices, with less than 
three months' experience in the trade may be paid not less than 80% 
of said minimum rate, but the number of learners and apprentices 
employed by any wholesaler receiving less than the minimum rate 
shall not exceed 5% of the total number of employees of such whole- 
saler; provided, however, the wholesaler may so classify at least one 
employee. 

(2) This section establishes the minimum rate of pay which shall 
be paid for an hour's work, irrespective of whether an employee is 
actually compensated on time rate, piece work, or any other basis, 
except as specified in Section B. 

When a piece work employee is required to be on duty a specified 
time he shall receive, even though not productively engaged for such 
time, the minimum rate of pay herein specified. 

B. The minimum compensation that shall be paid to any office or 
salaried employee in the wholesale automotive trade shall be at the 
following rates : 

1. In cities over 500,000 population, or In the immediate vicinity 
thereof, at the rate of fifteen dollars ($15.00) per week. 

2. In cities of less than 500,000 population, or in the immediate 
vicinity thereof, at the rate of fourteen dollars ($14.00) per week. 

C. Equitable adjustments in all pay schedules of employees above 
the minimum shall be made within 30 days after effective date of 
this Code by any employers who have not heretofore made such 
adjustments, and the first reports of wages required to be filed under 
this Code shall contain all wage increases made since May 1, 1933. 

D. Wages shall be paid weekly or semimonthly in lawful money 
or by negotiable check. 

E. A person whose earning capacity is limited because of age or 
physical or mental handicap maj be employed at light work at a 
wage not less than 80% of 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 em- 
ployment 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. 

F. Female employees performing substantially the same work as 
male employees shall receive the same rate of pay as male employees. 



191 

Article III — Hours 

The following provisions as to hours are established for whole- 
salers : 

(A) Employees, excepting executive, administrative, and super- 
visory employees receiving not less than $35.00 per week and travel- 
ing and commission sales people shall not work or be permitted to 
work in excess of forty-four hours in any one week, or for more than 
eight hours in any twenty-four hour period, except that they may 
work, or be permitted to work a maximum of forty-eight hours *per 
week for a period of two weeks in each six months for inventory 
purposes. No executive, employer, or partner in a partnership, when 
working beyond forty-four hours per week, may perform the work 
or take the place of any employees subject to the maximum hour 
limitations of this Code. 

(B) The maximum hours herein above provided mark the total 
number of hours during which any employee may be employed in 
the trade, whether by one or more employers. 

(C) No employee or other person shall be classified in any one of 
the exempted classes herein above defined, unless he performs func- 
tions performed by employees thus classified on June 16, 1933. 

(D) Hours shall be worked consecutively with reasonable time 
out for lunch. 

(E) No employee whose normal full-time weekly hours for the 
four weeks ending July 1, 1933, are reduced by less than 20% shall 
have his or her full-time earnings reduced. No employee whose 
normal full-time weekly hours are reduced 20% or more shall have 
his or her full-time weekly earnings reduced by more than 10%, 

Article IV — Child Labor 

No person under sixteen years of age may be employed by any 
wholesaler. No person under eighteen years of age shall be em- 
ployed in the trade in occupations which are hazardous in nature or 
dangerous to health. 

Article V — Prices 

(A) The Code Authority shall establish a uniform system of cost 
accounting, suitable for and applicable to the wholesale automotive 
trade. Upon approval thereof by the Administrator, such system of 
cost accounting shall be used by every member of the trade, with such 
variations therefrom or exceptions thereto as may be required by 
the conditions affecting any individual member of the trade and as 
may be approved by the Code Authority. 

(B) No member of the trade shall sell or exchange any auto- 
motive merchandise at a price or upon such terms or conditions as 
will result in the customer paying lor the goods received less than 
the cost to the seller, determined in accordance with the uniform 
system of cost accounting hereinabove described, except as provided 
in Section F in Article VII; and further provided that this pro- 
vision shall not be construed in such manner as to interfere with 
the sale and/or exchange of merchandise between one member of 
the trade and another; and further provided this provision shall 
not apply when manufacturers resale schedules may be less than 
herein provided. 



192 

Article VI 

It has been alleged that certain unfair and discriminatory prac- 
tices exist in the trade which tend to eliminate or oppress small 
enterprises and to promote monopolies. Accordingly, it is provided 
that the Code Authority shall designate a representative or repre- 
sentatives who, in cooperation with such representative or rep- 
resentatives as may be designated by the National Automobile 
Chamber of Commerce, the Code Authority for the Automotive 
Patts and Equipment Manufacturing Industry, and the Emergency 
National Committee for the Motor Vehicle Retailing Trade, shall 
make a complete study of the aforesaid alleged unfair and dis- 
criminatory practices. 

The number of such representatives shall be determined by the Ad- 
ministrator, but the respective designating authorities shall be 
entitled to equal representation. The Administrator shall have the 
power to designate a chairman for such committee who may or may 
not be one of such representatives. If the National Automobile 
Chamber of Commerce, or the Code Authority for the Automotive 
Parts and Equipment Manufacturing Industry, or the Emergency 
National Comijiittee for the Motor Vehicle Retailing Trade should 
refuse or neglect to designate representatives, the study shall 
nevertheless proceed. 

The facts found, together with such recommendations as may be 
calculated to effectuate the policy of Title I of the National Indus- 
trial Recovery Act, shall be reported by such Committee to the Ad- 
ministrator as soon as possible, but in any event within ninety days 
from the date of approval of this Code. If, upon the basis of such 
report, the Administrator shall find that such unfair and discrimina- 
tory practices do exist and that the execution of the provisions here- 
inafter set forth will effectuate the purposes of the Act and will not 
be contrary to the public interest, and shall notify the respective 
authorities hereinabove described to that effect, the following pro- 
visions shall become effective as a part of this Code immediately upon 
such notification: 

(1) The sale by any member of the Trade of any branded or trade- 
marked merchandise at a price lower or on terms more favorable 
than the prices and terms in the currently published suggested resale 
schedules of the manufacturer thereof, is an unfair method of compe- 
tition. 

(2) The sale by any member of the Trade of any article of auto- 
motive merchandise knov/n to the Trade to be identical with and to 
be manufactured by the manufacturer of some branded or trade- 
marked article at a price lower or on terms more favorable than the 
prices and terms in the currently published suggested resale sched- 
ules of said manufacturer for said branded or trade-marked article, 
is an unfair method of competition. 

(3) The sale by any member of the Trade of any article of auto- 
motive merchandise in such manner as to indicate to the purchaser 
thereof that such article is identical with and manufactured by the 
manufacturer of some branded or trade-marked article at a price 
lower or on terms more favorable than the prices and terms in the 
currently publislied suggested resale schedules of said manufacturer 



193 

for said branded or trade-marked article, is an unfair method of 
competition. 

Provided, however, that the Administrator, in connection with 
such notification to the respective authorities aforesaid, may make 
such modification of the aforesaid provisions as may be mdicated by 
the facts found and recommendations made. 

Article VII — Trade Practice RuiiES 

The following are unfair methods of competition and if engaged 
in by any member of the trade shall constitute a violation of this 
Code: 

(A) Marking, branding, or failure to brand, or the describing of 
merchandise in catalogues or circulars for the purpose or with the 
effect of misleading or deceiving purchasers or prospective pur- 
chasers in any material particular is an unfair method of competition. 

(B) The making of statements by advertisement or otherwise and 
selling or offering to sell any automotive merchandise with intent to 
deceive purchasers or prospective purchasers is an unfair method of 
competition. 

(C) To prevent unfair methods of competition, the Code Author- 
ity shall, subject to the disapproval of the Administrator, establish 
a fair and equitable classification of accounts, and such classifica- 
tion shall be adhered to by all members of the Trade. No member 
of the Trade shall sell merchandise to any customer at prices lower 
than are offered to all other customers of the same class for the same 
quantity, grade, quality, or style. Provided, however, that due 
allowance may he made for differences in transportation costs, it 
being understood that transportation costs may be equalized by any 
individual member of the trade acting independently as between 
recognized wholesaling centers. 

If any application of the foregoing classification should work 
unjust hardship upon any member of the Trade or any customer, 
such members of the Trade or customer may appeal to the Code 
Authority, which shall have power to make such reclassification as 
justice requires. If the Code Authority should refuse relief or 
should fail to take action upon any appeal within fifteen (15) days, 
such member or customer may appeal to the Administrator, wno 
shall have power to grant relief. 

(D) No cash discount of greater than 2% shall be allowed by 
any member of the Trade. No cash discount shall be allowed where 
payment of an invoice is made by warrant, note, or trade acceptance, 
or where there is an unpaid balance due, unless such balance is due 
to and confined to items in dispute. 

The Code Authority may recommend to the Administrator such 
other provisions in regard to uniform credit terms, as shall seem 
necessary to help stabilize the trade. Upon approval thereof by the 
Administrator, after such hearing as may be prescribed, such pro- 
visions shall become part of this Code. 

(E) Accepting an order for a large quantity of merchandise at a 
large quantity price with the intention of making delivery of less 
than the quantity ordered is unfair method of competition. 

(F) When a member of the Trade deems it necessary to liquidate 
surplus, slow-moving stock of merchandise, dropped lines, seconds, 



194 

or inventories which must be converted into cash to meet emergency 
needs, such merchandise may be disposed of in such manner and on 
such terms and conditions as the Code Authority may approve and 
as are necessary to move such merchandise into buyers' hands, pro- 
vided that all invoices covering sales of merchandise so sold shall 
plainly display the following wording : " Special Close-out Prices." 
Failure to observe this rule or increasmg such stock during liquida- 
tion at the special prices is an unfair method of competition. If the 
Code Authority should deny approval as aforesaid, or should fail 
to notify the member of the trade affected of its decision within 10 
days after application for approval, such member of the trade may 
appeal to the Administrator, who may grant approval. 

It is recommended with reference to the above rule that any whole- 
saler finding himself in this position should first offer the surplus of 
merchandise to the manufacturer or seller thereof, and, failing dis- 
posal of such merchandise by this method, should offer same to his 
competitors in the district or local group. 

(G) The consignment of goods is an unfair trade practice unless 
the consignor obtains the approval of the Code Authority. If the 
Code Authority refuses approval or should fail to notify the mem- 
ber of the trade affected of its decision within 10 days after applica- 
tion for approval such member of the trade may appeal to the 
Administrator, who may grant approval. Consignment as used 
herein shall include, but without limitations, the carrying of floating 
ledger balances. 

(H) To give, directly or indirectly, or to permit to be given, or to 
offer money or anything of value to customers, prospective customers, 
employees, or representatives of customers or prospective customers, 
as an inducement to influence sales or to influence such customers or 
employees to refrain from dealing or contracting to deal with com- 
petitors, is an unfair method of competition. This rule includes the 
giving or permitting to be given, or holding oneself as giving so- 
called " Free Deals and " tree " mechanical service except as pro- 
vided by the manufacturers' warranty and/or sales policy in connec- 
tion with the sale of merchandise or mechanical service by automo- 
tive wholesalers. 

(I) The practice of coercion in the wholesale distribution of au- 
tomotive products in any form whatsoever or through the instru- 
mentality of any devices whatsoever is unfair competition. 

(J) Willfully inducing or attempting to induce the breach of ex- 
isting contracts between competitors and their customers by any 
false or deceptive means whatsoever, or interfering with, or obstruct- 
ing the performance of any such contractual duties or services by any 
such means, is unfair trade practice. 

(K) The defamation of competitors by falsely imputing to them 
dishonorable conduct, inability to perform contracts, questionable 
credit standing, or by other false representations, or the false dis- 
paragement of the grade or quality of their goods, is unfair trade 
practice. 

(L) Willfully withliolding from or inserting in the invoice state- 
ments which make the invoice a false record, wholly or in part, of 
the transaction represented on the face thereof, is an unfair trade 
practice. 



195 

(M) The minimum hours of any store or service operation in the 
TVTiolesale Automotive Trade shall be fifty-two hours in any one 
week unless such hours were less than 52 hours per week before 
July 1, 1933, in which case such hours less than 52 may apply. 

No member of the trade shall perform any store or service opera- 
tion on Sundays and/or holidays as are generally observed in any 
given district as applying to that district. 

Emergency sales or service may be performed in hours not speci- 
fied in this section under such conditions as the Code Authority may 
prescribe, subject to the disapproval of the Administrator. 

Article VIII — Organization and Procedure 

(A) There is hereby constituted a Code Authority for the purpose 
of assisting the Administrator in administering, supervising, and 
promoting the performance of the provisions of this Code by the 
members of the Wholesale Automotive Trade. 

(B) The Code Authority shall consist of twenty-two (22) mem- 
bers of the trade selected in a manner herein provided for from 
among the memberships of the associations specifically named in 
designating the National Administrative Committee (defined in 
Article I of this Code) in the following proportions : 

Five representatives of the Motor and Equipment Wholesalers 
Association ; 

Five representatives of the National Standard Parts Association; 

Three representatives of the Automotive Electric Association: 

Three representatives of the National Wheel & Rim Association; 

Three representatives of the National Automotive Parts Associa- 
tion; 

Three representatives of the Automotive Engine Rebuilders 
Association. 

Additional members of the Code Authority may be selected from 
members of the Trade to provide representatiou of interests not 
in the membership of any of the herein named associations in 
such manner and under such conditions as the Administrator may 
prescribe. 

The members of the Code Authority selected from the member- 
ships of the herein named associations shall be chosen as follows i 
The board of directors or corresponding authority of each asso- 
ciation shall appoint a nominating committee not later than fifteen 
(15) days from the date of approval of this code by the President. 
Each said committee shall within twenty (20) days from the date 
of its appointment submit to the secretary of its association names 
of nominees to the Code Authority, numbering not less than twice 
the number of representatives from said association. The secretary 
of each association shall immediately transmit the names of such 
nominees to the membership of his respective association. 

Additional nominations may be made by the members of each 
association by petition signed by not less than ten members, pro- 
vided that said petition is filed with the secretary of the association 
addressed to the headquarters of the association not later than 
twenty (20) days after the date of notification by the secretary of 
nominees by the nominating committee. 



196 

The secretary shall immediately transmit to the members a ballot 
containing the names of all nominees, said ballot to be returned in 
a self-addressed envelope directed to the Board of Directors or other 
corresponding authority, care of headquarters of the association not 
later than twenty (20) days from the date of its transmittal to mem- 
bers. The Board of Directors or a duly authorized board of can- 
vassers shall immediately canvas the result and certify same to the 
national administrative committee, who shall immediately certify 
said result to the Administrator. 

Participation in the selection of members of the Code Authority 
chosen from the memberships of the associations shall be limited to 
duly accredited representatives in the associations of members there- 
of who are members of the trade. Only such duly accredited repre- 
sentatives shall be eligible for election to the Code Authority as 
representatives of such associations. 

The National Administrative Committee as constituted on the date 
of approval of this Code shall be the Code Authority until procedure 
governing election as herein above provided shall have been 
complied with. 

The Code Authority as constituted on the date of approval of this 
Code and as determined in accordance with procedure herein pro- 
vided shall have the power to delegate its authority as it may 
determine subject to the disapproval of the Administrator, pro- 
vided, however, that no such delegation shall relieve it of its duties 
and responsibilities under this Code. 

Vacancies in the membership of the Code Authority may be filled 
by the Code Authority in such manner as it may prescribe subject to 
the disapproval of the Administrator, provided that the person or 
persons selected to fill such vacancy or vacancies be selected from 
the membership of the association in which it or they occur. 

The Code Authority as elected in the manner herein provided 
shall serve until the date of the expiration of the Act, or sooner 
if the President shall have declared the emergency under which the 
Act was created to have ended. 

(C^ No inequitable restrictions upon membership in any of the 
associations which designated the National Administrative Com- 
mittee or in any other association, national or local, which par- 
ticipates in the administration of this code, shall at any time be 
imposed. 

(D) The Code Authority shall have the powers and duties pre- 
scribed in this Code, subject to the right of the Administrator, upon 
review, to disapprove any action taken by the Code Authority. 

With a view to keeping the Administrator informed as to the 
observance or nonobservance of this code and as to whether appro- 
priate steps are being taken to. effectuate the purposes of the Act, 
each member of this trade shall furnish certified reports to the Code 
Authority when and in such form as it shall, subject to the dis- 
approval of the Administrator, prescribe. Each member of the Code 
shall permit a disinterested agency, designated by the Code Au- 
thority, with the approval of the Administrator, to make such exam- 
ination of the relevant records of each member of this trade as may, 
subject to the approval of the Administrator, be necessary for the 
purpose of verifying the accuracy of such reports. 



197 

(E) The Administrator mav designate not more than three rep- 
rcvsentatives to participate in the cor3erences of the Code Authority 
with respect to the application of this Code and such representatives 
shall have access to all data and statistics collected by the Code 
Authority as hereinabove provided. The Code Authority shall hold 
itself in readiness to assist the Administrator and to meet with the 
Administrator's representatives from time to time as required, to 
consider and study any suggestions or proposals presented upon 
behalf of the Administrator or any member of the trade regarding 
the operation, observance, or adrninistration of this Code. Such 
representatives shall receive such notice of meetings of the Code 
Authority as is given to members of the Code Authority. 

(F) Any and all information with respect to sales volume, costs, 
and other details of operations as may be furnished by the members 
of the trade to the Code Authority shall be considered confidential 
and shall not be supplied or made available to others except to the 
duly appointed and constituted representative of the President. 

(G) In addition to information required to be submitted under 
this Code there shall be furnished to government agencies such sta- 
tistical information as the Administrator may deem necessary for 
the purposes recited in Section 3 (a) of the Act. 

(H) Each member of the Code shall bear his proportionate share 
toward the cost of preparation and administration of the Code, 
including the cost of assembly and analysis of such reports and 
data as may be required under the Code and the cost of the main- 
tenance of the Administrative agency and its activities. Said pro- 
portionate share shall be determined by the Code Authority with 
the approval of the Administrator. Only members of the Code may 
participate in the activities of the Code Authority. 

(I) In order that the Code Authority shall at all times be truly 
representative of the trade and in other respects comply with the 
provisions of the Act, the Administrator may prescribe such hearings 
as he may deem proper ; and thereafter if he shall find that the Code 
Authority is not truly representative or does not in other respects 
comply with the provisions of the Act, may require an appropriate 
modification in the method of selection of the Code Authority. 

Article IX — Amendments 

(A) This Code and all provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provision 
of Section 10 (b) of the National Industrial Recoveiy 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. 

(B) Such of the provisions of this Code as are not required to be 
included therein by the National Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated as changes 
in circumstances or experience may indicate, upon application of the 
Code Authority and approval by" the President after such hearings 
as may be prescribed. It is contemplated that from time to time 



198 

Bupplementary provisions or supplementary codes to this Code will 
be submitted for the approval of the President to prevent unfair 
competition in price and other unfair and destructive competitive 
practices and to effectuate the other purposes and policies of Title I 
of the National Industrial Recovery Act consistent with the provi- 
sions hereof. 

Abticle X — General 

(A) No provision in this Code shall be interpreted or applied 
in such manner as to promote monopolies, permit or encourage un- 
fair competition, eliminate or oppress or discriminate against small 
enterprises. 

(B) If any emploj^er of labor in the wholesale automotive 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 included in the wholesale automotive industry. 

(C) (1) Employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or in 
eelf-organization or m other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection ; (2) no em- 
ployee and no one seeking employment shall be required as a condi- 
tion of employment to join any company union or to refrain from 
joining, organizing, or assisting a labor organization of his own 
choosing; and (3) employers shall comply with the maximum hours 
of labor, minimum rates of pay, S,nd other conditions of employment, 
approved or prescribed by the President. 

(D) Nothing contained in this Code shall constitute the members 
of the Code Authority partners for any purpose ; nor shall this Code 
be construed to render any member of the Code Authority liable 
in any manner to anyone for any act of any other member, officer, 
agent, or employee of the Code Authority; nor shall this Code bo 
construed to render any member of the Code Authority exercising 
reasonable diligence in the conduct of his duties hereunder liable to 
anyone for any action or omission to act under this Code except for 
his own willful misfeasance or nonfeasance. 

(E) No member of this Code shall be held to have consented to 
any modification thereof or to any provision or interpretation of the 
National Industrial Recovery Act if declared unconstitutional by the 
Supreme Court of the United States. 

(F) All employers shall post the labor provisions of this Code in 
conspicuous places accessible to employees. 

(G) No provision in this Code shall supersede any State or Fed- 
eral law which imposes on employers more stringent requirements 
as to age of employees, wages, hours of work, or as to safety, health, 
sanitary, or general working conditions, or insurance, or fire protec- 
tion, than are imposed by this Code. 

(H) The effective date of this Code shall be the 10th day after the 
date of its approval by the President of the United States. 



Registry No. 1404-3-14. 
Approved Code No. 163. 



o 



Approved Code No. 164 
CODE OF FAIR COMPETITION 

FOR THE 

KNITTED OUTERWEAR INDUSTRY 

As Approved on December 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with tlie 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 Knitted Outerwear 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 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 condition : 

That all manufacturers of knitted outerwear for infants and 
children, sized from infancy to and including age fifteen, be granted 
a stay from the provisions of this code, until determination by the 
Administrator, after such hearing as he may deem necessary, as to 
whether or not they are to be included in this code. 

FRANKLIN D. ROOSEVELT. 
Approval recommended: 
Hugh S. Johnson, 

Admirvistrcntor. 

The White House, 

December 18, 1933. 

27645—33 (199) 



December 5, 1933^. 
The President, 

TJie White Hcmse. 

Sir : I have the honor to submit and recommend for jour approval 
the Code of Fair Competition for the Knitted Outerwear Industry.. 
This Code was proposed by the National Knitted Outerwear Asso- 
ciation, No. 1 Madison Ave., New York City. 

The National Knitted Outerwear Association was founded in 1918> 
and represents 55% of the total number of plants in the United' 
States and 72% of the total volume. This association is organized 
on a regional basis, with five separate local associations serving 
regions in all parts of the United States. The association imposes 
HO inequitable restrictions on membership. 

The hearing was conducted in the Willard Room of the Willard 
Hotel in Washington on October 16 and 17, 1933. Every person who- 
filed a request for an appearance was fully heard in accordance with 
statutory and regulatory requirements. 

EVIDENCE SUBMITTED 

The Industry comprises approximately 750 plants with an in- 
vested capital of approximately $50,000,000. The annual sales for 
the year 1931 were approximately $112,000,000 as compared to the 
sales in 1929 of $147,000,000. 

The Industry, since August 1, 1933, has been operating under the 
same wage and hour provisions as contained in the Code and pro- 
vided under a substitute agreement to the President's Reemployment 
Agreement. The application of these wages and hours increased 
the average weekly wage from $13.59 in June and July 1933 to 
$16.93 in August 1933, an increase of 17%. 

PROVISIONS OF THE CODE 

The Code provides for a minimum wage of 35^ per hour in the 
Northern section of the Industry and 321/^^ per hour in the Southern 
section. 

Productive machinery may be operated for two 40-hour shifts per 
week with the provision that any employer may elect to operate one- 
shift per week and have the privilege of operating 48 hours per week 
for two periods of 4 consecutive weeks each per year. 

Employees may work not more than 40 hours per week nor more 
than 8 hours per day, except that when an employer elects to operate 
one shift only, the employees may work not more than 48 hours per 
week nor more than 9 hours per day. 

Office employees may work an average of 40 hours per week over a 
period of any 12 weeks, but may not work more than 48 hours in any 
one week. 

(200) 



201 

'Overtime above 40 hours per week is to be paid for at the rate of 
"time and one third. Provision is made for the maintenance of differ- 
•cntials between wa^es above the minimum. Provisions are made for 
guaranteeint; sufficient pay to contractors to cover their wages plug 
a reasonable allowance for the contractor's overhead. 

HOME WORK 

Home work is a major problem in this Industry, due to the wide 
Tariety of woak done and the wide geographical distribution of 
the workers. Workers are located in both the Metropolitan centers 
and in country districts in all sections of the United States. 

It is necessary to consider also the conflicting aspects of the 
problem, as represented by the possibility of low wages, long hours, 
•child labor, 4ind unsanitary working conditions on the one hand, and 
the crippled, needy, widowed mothers and difficulty of obtaining 
drained workers on the other hand. 

From the evidence submitted and from independent investigations 
"it was evident that more time should be allowed for study of the 
problem. Accordingly a home-work committee has been provided 
for in the Code to set equitable piece rates and to study the prac- 
ticability of elimination of home work, insofar as possible. 

infant's and children's wear 

The Infant's and Children's Wear Industry have submitted a Code 
•of Fair Competition in which they seek to include Infant's and Chil- 
<iren's knitted outerwear. As the Knitted Outerwear Code also 
includes Infant's and Children's Knitted OuterAvear, a stay is recom- 
mended for all manufacturers of Infant's and Children's Knitted 
'Outerwear until a final determination can be made. 

FINDINGS 

I find that— 

(a) This Code complies in all respects with the pertinent pro- 
"visions of Title I of the National Industrial Recovery Act, including 
"without limitation subsection (a) of Section 7 and subsection (b) of 
Section 10 thereof. 

(b) The National Knitted Outerwear Association is truly repre- 
sentative of the Knitted Outerwear Industry and the Bylaws of this 
Association provide no inequitable restrictions to membership. 

(c) The Code is not designed to promote monopolies or to elimi- 
nate or oppress small enterprises and will not operate to discriminate 
against them, and will tend to effectuate the policy of Title I of the 
I^ational Industrial Recovery Act. 

1 recommend that the Code be approved. 
Respectfully., 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

KNITTED OUTERWEAR 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 Knitted Outerwear 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 

(a) The term " Knitted Outerwear Industry " as used herein is 
defined to mean the manufacture of knitted outerwear apparel for 
men, women, and children, including infants, and/or the manufac- 
ture of knitted fabrics for outerwear purposes, but shall not include 
the products of the hosiery and/or underwear industries and/or the 
manufacture of knitted woolen goods in self-contained woolen mills 
of the wool textile industry as defined in the respective codes of 
these industries and shall not include the manufacture of garments 
made of purchased knitted fabrics. 

(b) The term "employee" as used herein includes any person 
engaged in any phase of the Knitted Outerwear Industry in any 
capacity in the nature of employee irrespective of the method of 
payment of compensation. 

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

(d) The term "productive machinery" as used herein is defined 
to mean all knitting, winding, pressing (not including the pressing 
of dresses, suits, and coats) and fabric finishing machinery used in 
the Knitted Outerwear Industry. 

(e) The term " contractor " as used herein shall include anyone 
who manufactures any of the products of the industry as above 
defined, in whole or in part, for others who provide the necessary 
raw materials. 

(f ) The term " Act " as used herein refers to the National Indus- 
trial Recovery Act. 

(g) The term " Code Authority " as used herein shall refer to the 
Knitted Outerwear Industry Code Authority set up in Article IX 
of this Code. 

(h) The term "Administrator " means the Administrator duly 
appointed under the National Industrial Recovery Act. 

(202) 



203 

(i) The term " member of the Industry " as used herein is defined 
to mean every employer, as defined herein, and all firms who use 
contractors or submanufacturers referred to in Article VII hereof, 
and firms in any other related groups as may from time to time be 
included in the Industry by the Administrator upon application of 
the Code Authority. 

(j) The term "cleaner" as used herein means and includes any- 
one who does janitor service or one who cleans floors, buildings, or 
machinery and does nothing else but clean. 

(k) The term "learner" as used herein means and includes any- 
one who has worked less than eight (8) weeks in the industry. 

Article III — Hours 

(a) No employee in the Knitted Outerwear Industry, except re- 
pair-shop crews, engineers, electricians, firemen, supervisors, ship- 
ping, watching and outside crews, cleaners, and office employees re- 
ceiving less than $35.00 per week shall be permitted to work in excess 
of forty (40) hours per week, and the hours in each week during 
which any employee shall have worked in other plants and/or in other 
industries shall be included in such forty (40) hours. 

(b) Office employees receiving less than thirty-five dollars ($35) 
per week shall not be permitted to work more than four hundred and 
eighty (480) hours in any twelve- week period, an average of forty 
(40) hours per week, and not more than forty-eight (48) hours in 
any one week. 

(c) On or before February 1, 1934, the Code Authority shall pre- 
pare and submit to the Administrator suggestions for a schedule of 
maximum hours to apply to those emiiloyees excepted under section 
(a) of this Article. 

(d) Employers in the Knitted Outerwear Industry shall not oper- 
ate productive machinery in the Knitted Outerwear Industry for 
more than two (2) shifts of fort}^ (40) hours each in any week, and 
no otlier machinery used in the Knitted Outerwear Industry shall 
be operated for more than one (1) shift of forty (40) hours during 
any week; except that any employer may elect by notifying the 
Code Authority to operate all machinery for one (1) shift only, and 
such employer may operate all machinery on a schedule of hours 
of labor for his employees of not more than forty (40) hours per 
week except that for tw^o (2) periods of four (4) consecutive weeks 
each, per year, such employer may operate not more than forty- 
eight (48) hours in any one week. 

(e) No employee shall work more than eight (8) hours in any 
one day when on a forty (40) hour weeklj^ shift nor more than nine 
(9) hours in any one day when on a forty-eight (48) hour weekly 
shift 

(f ) All overtime above forty (40) hours per week shall be paid 
for at the rate of time and one third. 

Article IV — Wages 

(a) The minimum wages that shall be paid by employers in the 
Knitted Outerwear Industry to any of their "^employees, except 
learners, shall be at the rate of thirty-five cents (35^) per hour 



204 

when employed in the Northern section of the industry and thirty- 
two and one half cents (3214) per hour when employed in the 
Southern section. 

(b) The States of Virginia, Tennessee, Kentucky, North Carolina, 
South Carolina, Georgia, Florida, Alabama, Mississippi, Arkansas, 
Texas, Louisiana, and Oklahoma shall constitute the Southern sec- 
tion of the Industry. Other states and the District of Columbia 
shall constitute the Northern section. 

(c) The rate of pay for learners shall not be less than seventy- 
five (75% ) percent of the minimum rate and no employer shall in- 
clude within the category of learners more than one such employee 
for every twenty (20) employees or fraction thereof. 

(d) The weekly compensation for employment now in excess of 
the minimum wages herein provided shall not be reduced, notwith- 
standing that the hours of work in any such employment may be 
hereby reduced, and piece rates shall be so adjusted that earnings 
at the shorter hours provided in this Code shall be at least equiv- 
alent to those obtaining under the longer hours heretofore pre- 
vailing. 

(e) The provisions for a minimum wage in this Code shall estab- 
lish a guaranteed minimum rate of pay per hour of employment, 
regardless of whether the employees' compensation is based on a 
time rate or piecework rate or any other basis. 

(f) Employers shall not reclassify employees or duties of occu- 
pations performed by employees so as to defeat the purposes of the 
Act and of this Code. 

(g) A person whose earning capacity is limited because of age 
or physical or mental handicap may be employed on light work at a 
rate of pay not less than 75% of the minimum rate, provided that not 
more than one (1) employee for every twenty (20) employees or a 
fraction thereof may be placed within this classification, and the 
names and addresses of all such handicapped employees shall be 
reported to the Code Authority. 

Article V — Child Labor 

No person under sixteen (16) years of age shall be employed in the 
KJiitted Outerwear Industry, nor anyone under eighteen (18) years 
of age at operations or occupations hazardous in nature or detri- 
mental to health. 

Article VI — Home Work 

(a) No Knitted Outerwear products shall be manufactured at 
home for sale or other commercial purpose, except that for the 
period of one year after the effective date of this Code hand knit- 
ting (which shall include hand crocheting, hand embroidering, and 
hand sewing together of machine-made parts of garments), will be 
permitted when performed in accordance with regulations and/or 
piece rates which may be established as herein provided. 

(b) Anything contained in Article IV of this Code to the con- 
trary notwithstanding, the Administrator may fix, on or before 
January 15, 1934, after notice to the Code Authority, and may 



205 

change from time to time after like notice, minimum pieceAvoik 
rates for any of the operations described in paragraph (a) of this 
Article. 

(c) The Administrator shall appoint a Hand-Knitted Division 
Committee of seven, three of whom shall be fairly representative 
of the hand-knit manufacturers, three fairly representative of the 
machine manufacturers and recommended by the Code Authority, 
and one representing the Administrator. This Committee shall re- 
port to the Administrator within thirty (30) days after the effec- 
tive date of this Code or within such further time as may subse- 
quently be allowed by the Administrator or his Deputy, with re- 
spect to proper minimum piecework rates and shall make a study of 
and report within six months from the effective date of this Code, 
upon the practicability of discontinuing home work in the Industry 
or setting up a system of control for home workers. 

Article VII — Contracting 

All members of the Knitted Outerwear Industry who use con- 
tractors or submanufacturers for knitting or fabricating garments, or 
any part thereof, shall pay such rates to the contractor or submanu- 
facturer as will enable the contractor or submanufacturer to pay his 
employees at least the wages provided for in this Code, together 
with a reasonable allowance for the contractor's overhead. The Code 
Authorit}' shall formulate additional regulations, with the approval 
of the Administrator, to carry into effect the purpose and intent of 
this provision. 

Article VIII — General Labor Provisions 

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

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

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

(d) 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. 

(e) Each employer shall post in conspicuous places on his premises 
full copies of this Code, in the form prescribed by the Code Authority. 

Article IX — Administration 

(a) To effectuate further the policies of the Act, a Knitted Outer- 
•wear Industry Code Authority is hereby designated to act as the 



206 

representative body from the Industry in the administration and 
enforcement of this Code and shall have, in addition to the specific 
powers herein conferred, all general powers necessary to, assist the 
Administrator in such administration and enforcement. 

(b) This Code Authority shall consist of eight (8) representa- 
tives of the Knitted Outerwear Industry elected by a fair method 
of selection, to be approved by the Administrator, and not more 
than three (3) members without vote and without cost to the In- 
dustry, appointed by the Administrator. Such agency may from 
time to time present to the Administrator recommendations based 
on conditions m this industry as they may develop which will tend 
to effectuate the operation of the provisions of this Code and the 
policy of the Act. Such recommendations, when approved by the 
Administrator, shall have the same force and effect as any other 
provisions of this Code. 

(c) Such agency is also set up to cooperate with the Adminis- 
trator in making investigations as to the functioning and observance 
of any provision of this Code, at its own instance or on complaint 
of any person affected, and to report same to the Administrator. 

(d) In addition to the information required to be submitted to 
the Code Authority there shall be furnished to Government Agencies 
such statistical information as the Administrator may deem neces- 
sary for the purpose stated in section 3 (a) of the Act. 

(e) Members of the Industry who manufacture Infants' and 
Children's wear up to and including sizes for 15-year-old children 
may elect to form a separate group within the industry and shall 
have full rights to autonomy in regard to trade practices. This 
group may either approve the trade practices applying to other 
members of the Industry or separate and distinct trade practices 
may be promulgated and adopted as provided in this Code. 

(f ) 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 
complying with the requirements of this Code and sustaining their 
reasonable share of the expense of its administration. The reason- 
able share of the expenses of administration shall becletermined 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. 

(g) The Code Authority will cooperate with the Administrator 
in the establishment of an Advisory Council for all or any group of 
textile industries, for the purpose of considering and advising with 
the Administrator on matters concerning two or more of such indus- 
tries operating under separate Codes of Fair Competition, and upon 
request and with the approval of the Administrator, appoint to such 
Advisory Council one or more representatives of the Knitted 
Outerwear Industry. 

Article X — Trade Practtices 

To accomplish the purposes contemplated by the Act the follow- 
ing practices are hereby declared to be unfair methods of competi- 
tion and in violation of this Code. 



207 

(a) Selling Below Cost. — No member of the Industry shall sell 
any product or service below cost based upon principles of costing 
formulated by the Code Authority and approved by the Adminis- 
trator, except when necessary to meet competition, to dispose of 
distress merchandise or under other circumstances to be defined by 
the Code Authority. 

(b) Consignment. — No member of the industry shall ship goods 
on consignment except under circumstances to be defined by the 
Code Authority, where peculiar circumstances of the Knitted Outer- 
wear Iiidustr}^ recjuire the practice. 

(c) Mishi'andlng. — No member of the Industry shall falsely mark 
and/or brand knitted outerwear products for the purpose or with 
the effect of misleading or deceiving purchasers with respect to the 
origin, trade marking, quality, yarn content, or construction of such 
products. 

(d) Misrepresentation. — No member of the industry shall publish 
advertising (whether printed, radio, display, or of any other nature) 
which is misleading or inaccurate in any material particular, nor 
shall any member in any way misrepresent any goods (including but 
without limitation its use, trade mark, grade, quality, quantity, 
origin, size, substance, character, nature, finish, material, content, 
or preparation) or credit terms, values, policies, services, or the 
nature or form of the business conducted. 

(e) Terms of Sale. — (l)No member of the Industry shall sell 
or offer to sell knitted outerwear products upon terms other than a 
maximum discount of three (3) percent to the wholesale trade for 
payment on the 10th day of the month following the designated 
shipping date, or equivalent discount for longer periods. (2) No 
member of the Industry shall sell or offer to sell knitted outerwear 
products to the retail trade upon terms other than a maximum 
discount of eight (8) percent for payment on the 10th day of the 
month following that of shipment. For the purpose of these pro- 
visions, the 25th calendar day shall be considered the end of the 
month. 

(f) Returns. — No member of the Industry shall accept the re- 
turn of garments that have been w^orn, or merchandise not worn 
but which has been accepted by a customer, except under circum- 
stances to be defined by the Code Authority. 

(g) Rebates. — No member of the Industry shall secretly directly 
offer or make any payment or allowance of a rebate, refund, com- 
mission, credit, unearned discount or excess allowance, whether in 
the form of money or otherwise, nor shall a member of the industry 
secretly offer or extend to any customer any special service or priv- 
ilege not extended to all customers of the same class, for the pur- 
pose of influencing a sale. 

(h) Delivery Charges. — All knitted outerwear products shall be 
sold F.O.B. shipping point, except for deliveries within metropolitan 
areas local to the shipper, subject to exceptions approved by the Code 
Authority. 

Article XI — Standards 

(a) All standards already formulated in cooperation with the 
Bureau of Standards of the United States Department of Commerce- 



208 

und approved by the industry, or standards which shall be so for- 
mulated and approved, shall become the standards of the industry. 
The Knitted Outerwear Code Authority shall notify all members of 
the industry and all known interested persons in the industry of each 
new standard adopted, and the effective date thereof. All mer- 
chandise manufactured after the effective date shall be plainly and 
visibly marked by a firmly sewed label, " Substandard ", where such 
merchandise comes below the minimum standards. Every manu- 
facturer shall plainly mark with a stamp or a firmly sewed label the 
size or measurement of his product thereon. 

(b) All garments manufactured or distributed shall bear an 
N.R.A. label, which shall remain attached to such garments. Such 
label shall be in such form as may be prescribed by the Code Author- 
ity. The Code Authority shall have the exclusive right in thig 
industry to issue and furnish said labels to the members thereof. 
The privilege of using such label shall be granted and such label 
shall be issued to any employer from time to time engaged in the 
industry, upon application therefor to the Code Authority accom- 
panied by a statement of compliance with the standards of operation 
prescribed by and the provisions of this Code. The privilege of 
using such labels and the issuance thereof may be withdrawn and 
cease or may be suspended in respect to any such manufacturer whose 
operations, after appropriate hearing by the Code Authority and 
review by the Administrator, shall be found to be in substantial 
violation of such standards and provisions. Employers shall be en- 
titled to obtain and use such labels if they comply with the pro- 
visions of this Code. The Code Authority may establish appropriate 
machinery and regulations for the issuance of such labels, inspec- 
tion, examination, and supervision of employers engaged in the 
industry, in accordance with the foregoing provisions. 

Article XII — Modification 

(a) 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 approval thereof. 

(b) 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 XIII — Monopolies 

The provisions of this Code sliall not be interpreted or applied 
to promote monopolies or monopolistic practices or to eliminate 
■or oppress small enterprises or to discriminate against them. 



209 

Article XIV — Effective Date 

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



Approved Code No. 164. 
Registry No. 243-1-02. 



O 



Approved Code No.* 165 
CODE OF FAIR COMPETITION 

FOR THE 

NON-FERROUS FOUNDRY INDUSTRY 

As Approved on December 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for the Xon-Ferrous Foundry 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 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 : 

XOW, 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 trator. 
The White House, 

December 18, 1933. 

21CAV 20G-165 33 (211) 



December 8, 1933. 
The Peesident, 

The White House. 
Sir: This is a report on the Code of Fair Competition proposed 
for the Non-Ferrous Foundry Industry in the United States, and 
supplementary codes submitted by the Miscellaneous Sand Castings 
division, the Aluminum Permanent Mold Castings division, the Steel 
and Rolling Mill Castings division, and the Blast Furnace Castings 
division of the Industry, and on the hearing conducted thereon in 
Washington, D.C., on October 27, 1933, in accordance with the provi- 
sions of the National Industrial Recovery Act. 

RESUME OF CODE AS TO WAGES AND HOURS 

The Basic Code provides a 40-hour week for all employees, except 
those performing executive or technical work, and members of their 
staffs individually receiving pay at the rate of at least $35.00 per 
week. Peak period employment is allowed not to exceed 48 hours 
per week for not more than 4 weeks in any 6 months' period with 
a 6-day week. The peculiarities of foundry production make it 
impossible on infrequent occasions to complete foundry processes 
within an exact 8-hour day, but the principle of the 8-hour day is 
recognized by a statement in the Code. 

Melters, engineers, and firemen may be employed not more than 
10% longer hours than other factory emploj^ees, but the number 
shall not exceed 3% of the total number of employees. 

Repair employees may be employed 10% longer than regular hours 
in case of emergency. 

Watchmen may be employed 56 hours per week. 

Child labor is prohibited, and no person under 18 years of age 
may be employed in any dangerous or hazardous occupations. 

Minimum rates of pay are 32^ per hour in the southern district 
for males and 27?i per hour for females; and 40^ per hour in the 
northern district for males and 350 for females, with not less than 
80% for learners (for a period of not exceeding 90 days) appren- 
tices (for a period of not exceeding one year) and superannuated 
and maimed employees. Not more than 5% of the total number 
of employees may be included in the classifications receiving less 
than the minimum rates of pay. Equitable adjustment is provided 
for all wages above the minima, 

GENERAL STATEMENT 

This Industry consists of establishments engaged in the manu- 
facture of aluminum, antimony, bismuth, cadmium, cobalt, copper, 
lead magnesium, nickel, tin, zinc, and alloy castings, with certain 
definitely stated exceptions. It consists of approximately 1,500 
plants most of which are small units employing only a few workers. 

(212) 



213 

The Association presents the following figures : 

Invested Capital $40,000, 000 

Present Sales Volume $ 3,300,000 

Production Capacity lbs. per month— 60,000,000 

Production Rate at Present do 21, 700, 000 

Present Number of Employees 14, 000 

Statistical information is exceedingly meagre, and has been 
gathered only by the Industry, Avliich has compiled some basic 
figures beginning in 1928. 

These statistics indicate that in 1928 and 1929 approximately 
97% of the concerns in the Industry were operating on a schedule 
of hours greater than 40 hours per week, and that during the first 
portion of 1933 approximately 67% of the concerns were operating 
under such a schedule. Setting a maximum of 40 hours per week, 
therefore, will materially mcrease the number of employees. 

Pertinent figures relative to labor and wages since 1928 are as 
follows : 



Year 



Esti- 
mated 
number 
of em- 
ployees 



Average 

minimum 

weekly 

wage 



Estimated 

weekly pay 

rol 



1928 

J929 

1st quarter 1933 

July to September 1933 

Estimated under code 



17, 000 
18,500 
12, 000 
14,000 

15, 800 



$12. 25 

12.25 

9.00 

11.75 

• 16. 00 

s 12. 80 



$450, 000. 00 
515, 000. 00 
265, 000. 00 
334, 000. 00 

398, 000. 00 



1 North. 



* South. 



The present volume of business in pounds production is estimated 
at 50% to 60% of 1929, whereas the value of said business in dollars 
is only 35% to 40% of the 1929 levels. With an improvement in 
general business conditions and an increase in the business of this 
Industry to a normal of ajDproximately 75% of 1928 to 1929 ton- 
nages, the Industry working under the Code will employ approxi- 
mately 22,000 persons and will have an average weekly pay roll of 
approximately $550,000.00, or an increase in the pay roll of about 
$7,500,000.00 per year. It is evident, therefore, that the anticipated 
business expansion will result in greater employment within this 
Industry than the 1929 peak. 

Provision is made that three representatives of the Administration, 
without vote, shall serve with the Code Authority. 

The supplementary codes submitted define certain subdivisions of 
the Industry, and outline fair trade practices for each of these sub- 
divisions. Provision is made for the submission of additional sup- 
plements by any other subdivisions of the Industry which may wish 
to file them. 

I believe that the Code and supplements are fair to Industry, to 
Labor and to the Consumer, and in accordance with the intent and 
purpose of the National Industrial Recovery Act. 



214 

FINDINGS 

The Deputy Administrator finds that : 

(a) The Code and supplements as recommended comply in all 
respects with the pertinent provisions of Title I of the Act, includ- 
ing, 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 
Non-Ferrous Foundry Industry; and that 

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

Accordingly, I hereby recommend the approval of this proposed 
Code of Fair Competition for the Non-Ferrous Foundry Industry, 
and of the Supplemental Codes for the Miscellaneous Sand Castings 
division, the Aluminum Permanent Mold Castings division, the 
Steel and Rolling Mill Castings division, and the Blast Furnace 
Castings division of the Industry. 
Respectfully, 

Hugh S. Johnson, 

AdTrdnistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

NON-FERROUS FOUNDRY INDUSTRY 



To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Code of 
Fair Competition for the Non-Ferrous Foundry Industry and shall 
be binding upon every member thereof. 

Article I — Definition of Tekjms 

The terms used in this Code are defined as follows : 

(a) The term "the Industry " means and includes the business of 
producing nonferrous castings as hereinafter defined, and such 
equipment therefor as is regularly manufactured in plants of mem- 
bers of the industry, and selling such castings in the United States 
except as produced and/or sold as a part of the products, including 
finished and semifinished parts thereof, of an owning or an affiliated 
company, but not sold in the open market as castings in competition 
with similar castings produced by other members of the Industry, 
provided, however, that such term does not include the production of 
Railroad car and locomotive journal bearings and castings, nor semi- 
finished or finished Street Railway castings, and provided further 
that such term does not include the production of die castings and 
the production of aluminum alloy piston castings. 

The term " affiliated company " means a company whose relations 
to another company are such that either one has directly or indirect- 
ly, a 51% or more voting stock interest in the other, or that a third 
company has, directly or indirectly, a 51% or more voting stock 
interest in both. 

The industry embraces two main groups of castings Avhich are 
" Miscellaneous Non-Ferrous Castings " and " Specialty Non-Fer- 
rous Castings." 

(b) The term "Member of the Industry" includes anyone en- 
gaged in the industry as above defined, either as an employer or on 
his own behalf; Provided, however, that organizations or groups 
of members of the industry representing a substantial joart of any 
branch or division of the industry may be exempted by the Adminis- 
trator from the provisions of this Code as provided for herein. 

(c) The term " Non-Ferrous Castings " means castings made in the 
Industry from aluminum, antimony, bismuth, cadmium, cobalt, cop- 
per, lead, magnesium, nickel (except nickel chromium alloys con- 
taining more than 5% of chromium), tin, zinc, and their alloys con- 
taining less than fifty pcrcentum (50%) of iron, produced by any 
process. 

(215) 



216 

(d) The term "Miscellaneous Non-Ferrous Castings" means that 
group of non-ferrous castings produced in the rough or partially 
machined or finished by a member of the industry to the order of the 
buyer from the buyer's designs and specifications, (e) The term 
" Specialty Non-Ferrous Castings " means that group ot east non-fer- 
rous products in the rough or partially machined or finished, de- 
signed and engineered by members of the industry producing them, 
produced from patterns and/or other production equipment belong- 
ing to the producer, 

(f ) The term " the Association " means Non-Ferrous Foundry 
Association for Industrial Recovery. 

(g) The term "the Board of Directors" means the Board of 
Directors of the "Association." 

(h) 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. 

(i) The terms "Act", and "Administrator", as used herein, shall 
mean respectively Title I of the National Industrial Recovery Act, 
and the Administrator for Industrial Recovery. 

(j) The term "President" means the President of the United 
States. 

(k) Population for the purposes of this Code shall be determined 
by reference to the 1030 Federal Census. 

Article II — General Regulations 

Members of the Industry will comply with the following specific 
provisions : 

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

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

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

(d) Members of the Industry shall not reclassify employees or 
duties of occupations performed by employees so as to defeat the 
purposes of the Act. 

(e) Each member of the Industry shall post in conspicuous places, 
easily accessible to employees, copies of Articles II, III, IV, and V 
of this Code. 

Article III — Regulations of Hours or Work 

(a) No member of the Industry shall cause or permit any em- 
ployee to work in excess of forty (40) hours per week, subject to 
the following exceptions : 



217 

(1) In peak periods of production employees may be employed 
not to exceed forty-eight (48) hours per week for a period of not 
more than four (4) weeks in any six (G) months and not more than 
six (6) days in any one week. 

(2) Melters, engineers, and firemen, the number (in no case less 
than one) of whom employed by any member of the Industry j-hall 
not exceed 3% of the total number of its employees, may be em- 
ployed not more than 10% longer hours than other factory employees. 

(3) Repair- 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 primarily in directing or supervisory 
capacities or 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 and outside service men, 

(7) In emergencies where the safety of the r-ien or the protec- 
tion or preservation of the property necessitates longer hours. 

(8) Whenever sufficient employees qualified for any type of work 
are not available to any member of the Industry in a particular 
locality such hours of labor may be increased to the extent re- 
quired by such member of tlie Industry to perform such work, but 
compensation for such increased hours shall be at the rate of one 
and one half times the regular hourly rates. 

(b) The Industry recognizes the desirability of and accepts the 
principle of the eight (8) hour working day for labor and insofar 
as it reasonably can, the Industry will endeavor to employ its labor 
on that basis. 

(c) After the date of the employment by any member of the 
Industry of any employee such member shall not permit such era- 
ploj^ee who shall also have performed Avork for one or more other 
emploj^ers 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. 

Article IV — Minimum Wage Eates 

Inasmuch as living conditions differ between sections of the Coun- 
try and for the purpose of providing for wage differentials the 
United States is divided into two districts hereinafter designated 
" Xorth " and " South ". The " North " comprises all that part of 
the United States except the States of North Carolina, South Caro- 
lina, Georgia, Florida, Alabama, Tennessee, Arkansas, Mississippi, 
Louisiana, Oklahoma, and Texas. The " South " comprises all of the 
above-named States. 

(a) The minimum rate of pay per hour which shall be paid by 
members of the Industry for male plant labor not including learners 
(for a period of not exceeding 90 days) bona fide apprentices (iden- 
tified under a year's system or course of training), superannuated 
and maimed employees in its employ in the Industry in the " North " 

27044° 296-165 -33 2 



218 

shall not be less than 400 per hour, and in the " South " shall not be 
less than 320 per hour. 

(b) The minimum rate of pay per hour which shall be paid by 
members of the Industry for female labor in the " North " shall not 
be less than 350 per hour, and in the " South " not less than 27^ 
per hour. Where Avomen perform substantially the same kind and 
amount of work as men, they shall receive the same wages. 

(c) The minimum rate of pay per hour which shall be paid by 
members of the Industry for learners, bona fide apprentices, super- 
annuated and maimed employees shall not be less than 80% of the 
minimum rate of pay as hereinbefore specified in paragraphs (a) 
and (b) of this Article. 

(d) The number of learners, bona fide apprentices, superannuated 
and maimed employees employed by any member of the Industry 
shall not exceed 5% of the total number of its employees. Each 
employer shall file with the Code Authority within sixty days after 
the effective date and always keep up to date a record of all bona fide 
apprentices in his employ. 

(e) In the case of employees performing work for which they are 
paid for piecework performed, the minimum rates of pay which each 
member of the Industry shall pay for such work shall produce over 
any pay period an amount equal to the amount receivable over that 
pay period at the minimum rates of pay per hour provided in 
paragraphs (a), (b), and (c), of this Article. 

(f ) On and after the effective date the minimum wage that shall 
be paid by any member of the Industry to all office and clerical 
employees, except commission sales people, shall be not less than 
$15.00 per week in any city of over 500,000 population, or in the 
immediate trade area of such city; nor less than $14.50 per week in 
any city of between 250,000 and 500,000 population, or in the imme- 
diate trade area of such city; nor less than $14.00 per week in any 
city of between 2,500 and 250,000 population, or in the immediate 
trade area of such city; and in towns of less than 2,500 population, 
not less than $12.00 per week. Office boys and girls shall be exempt 
from the provisions of this section, provided they are paid at a rate 
of not less than 80% of the above minimum wage, and provided 
further, that the number of such office boys and girls shall not exceed 
one to every ten persons employed in any office of any member of the 
industry (in no case less than one). 

(g) 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. 

(h) No member of the Industry shall reduce the rates of com- 
pensation for employment now in excess of the minimum wages 
hereby agreed to and shall make an equitable adjustment of the 
wages of employees now receiving more than the minimum wage as 
provided in this Code. Such equitable adjustment shall mean that 
differentials existing prior to the formulation of this Code shall be 
maintained for all workers. The first reports of wages required to 
be filed under this Code shall contain all wage increases made since 
May 1, 1933. 



219 

Article V — Prohibition of Child Labor 

No member of the Industry shall employ any person under the age 
of sixteen (16) years; provided, however, that when a State Law 
specifies a higher minimum age, no person below the age so specified 
by such law shall be employed within that State. No member of 
this Industry shall employ any person below the age of eighteen (18) 
years in any dangerous or hazardous occupation. 

Article VI — General Provisions 

(a) This Code is intended to be a Basic Code and to cover the 
entire Industry. It is understood that Divisions consisting of Trade 
Associations, groups of Manufacturers representing a substantial 
part of any specific branch of the Industry, and/or Trade Groups, 
may formulate supplementary Codes of Fair Competition, defining 
specifically their Division and covering such additional regulations 
as are considered advisable by them. These regulations, however, 
shall conform to the principles of the Basic Code. Such Codes when 
approved by the President of the United States shall have the same 
force and effect as this Basic Code. 

(b) Articles VI, VII, and VIII of this Code shall not be applicable 
with respect to the products of the Industry sold for use outside of 
the continental United States, which shall be deemed to exclude 
Alaska and the Canal Zone. 

(c) No provision in this Code shall be interpreted or applied in 
such manner as to — 

1. Promote monopolies 

2. Eliminate or oppress small enterprises; or 

3. Discriminate against small enterprises. 

(d) This Code and all the provisions thereof are expressly made 
subject to the right of the President of the LTnited States in accord- 
ance with the provisions of Section 10 (b) of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, 
approval, license, rule, or regulation, issued under Title I of said Act, 
and specifically to the right of the President of the United States 
to cancel or modify his approval of this Code or any condition 
imposed by him upon his approval thereof. 

(e) Such of the provisi(ms of this Code as are not required to be 
included therein by the National Industrial Recovery Act may, with 
the approval of the President of the United States be modified or 
eliminated as changes in the circumstances or experience may 
indicate. 

Article VII — Administration 

(a) The administration of the Code shall be under the direction 
of a Code Authority consisting of one representative elected by each 
of the several Divisions of the Industry submitting su])plemental 
Codes approved by the President of the United States, and may have 
in addition thereto one representative who may be elected to represent 
the members of the Industry not members of the Association nor of 
a Division submitting a supplemental Code. The President and Vice 
President of the Association shall be members ex officio. Each of 



220 

the above members shall have one vote. The Executive Secretary oi 
the Association, not a member of the Industry, shall be the Executive 
Secretary of the Code Authority, but shall have no vote on the 
Code Authority. 

(b) The Administrator may appoint from one to three representa- 
tives to attend all meetings of the Code Authority in order that the 
Administrator may be fully advised regarding the operation and 
administration of the Code. Such representatives shall be without 
vote and shall serve without expense to the Industry. Due notice 
shall be given to such representatives of all meetings of the Code 
Authority. 

(c) 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 Code Authority shall pay to the Code Authority 
his equitable proportionate share of the expense of formulating and 
putting into effect and administering this Code, and any other costs 
which may be incurred in the preparation and/or administration of 
the Code by said Code Authority. The part of such expenses which 
shall be assessed against such members of the Industry shall be 
assessed by the Code Authority, which Authority in making such 
assessment shall take into account the number of employees, the vol- 
ume and class of business and an equitable consideration of any and 
all matters which should be taken into account in determining the 
proper assessment. 

Failure of the memlDer of the Industry to pay any such assessment 
for a period of thirty days after the date on which it shall become 
payable shall entitle the Code Authority to deprive such member of 
his participation in the administration of the Code as therein or 
herein provided, and such member shall continue to be liable for his 
proportionate share of all due and unpaid assessments. 

(d) The Code Authority shall hold itself in readiness to assist and 
keep the Administrator fully advised, and to meet with the Admin- 
istrator's representative or representatives from time to time as 
requested, to consider and stucN any suggestions or proposals pre- 
sented upon behalf of the Administrator or any member of the 
Industry regarding the operation, obserA^^ance, or administration of 
this Code. Such Code Authority may from time to time present to 
the Administrator recommendations based on conditions in the In- 
dustry as they may develop and request modifications or additional 
provisions to this Code. 

(e) Any action taken by the Code Authority for the purpose of 
making effective the provisions of this Code may be submitted to the 
Administrator for approval, and shall in any case be subject to the 
disapproval of the Administrator. 

(f) The administration of provisions of supplementary Codes 
may, with the approval of the Administrator, be through adminis- 
trative agencies of the Divisions, coming under such supplementary 
Codes. 

(g) Each member of the Industry shall furnish to the Code Au- 
thority duly certified reports at such time and in such forms as may 
be required by it in order to administer this Code. 

(h) A Division having a Supplementary Code of Fair Competi- 
tion applying to it, and approved by the President of the United 



221 

States, may collect such statistics as referred to in the preceding 
paragi-aph and send them in compiled form to the Code Authority. 

(i) All statistical data filed shall be confidential and the data of 
one member of the Industry shall not be revealed to any other mem- 
ber of the Industry except in compiled form. 

(]) The Executive Secretary of the Code Authority, or his duly 
authorized representatives, not members of the Industry, shall have 
access to an}^ and all statistical data that may be furnished but only 
for the purpose of administering or enforcing the provisions of this 
Code. 

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

(1) The provisions of this Code and the jurisdiction of the Code 
Authority and of the Administrator under this Code over any mem- 
ber of the Industry are applicable only to that portion of the business 
and employment of the member of the Industry which is within the 
Industry. 

Article VIII — Supplements and Amendments to Supplements 

TO Code 

(a) Supplements and amendments to supplements to this Code 
dealing with fair and unfair methods of competition affecting the 
several Divisions of this Industry may be submitted by the Code 
Authority for said Divisions and when approved by the President 
of the United States shall become a part of this Code; provided, 
however, that no changes which affect a particular Division shall be 
submitted without the approval of the administrative agency of 
such Division where such an agency exists. 

Article IX — Effective Date 

This Code shall become effective on the first Monday after its 
approval of the President of the United States. 

Article X — Termination 

All provisions of this Code and any modifications thereof shall 
cease to be in effect after June 16, 1935, or sooner if the President 
shall by proclamation, or the Congress shall by joint resolution, de- 
clare that the emergency recognized by Section I of the Act has 
ended. 



SuPPIiEMENT TO CoDE OF NoN-FeRROUS FoUNDRY INDUSTRY SuBMITrED 

BY THE Miscellaneous Sand Castings Division or the Non- 
Ferrous Foundry Industry 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the folowing provisions are established as a supple- 
mental Code of Fair Competition for the Miscellaneous Non-Ferrous 
Sand Castings Division of the Non-Ferrous Foundry Industry. 

1. Definitions of Terms. 

(a) The term "Miscellaneous Non-Ferrous Sand Castings Indus- 
try " means and includes that division of the Non-Ferrous Foundry 
Industry, as defined, engaged in the business of producing miscel- 
laneous nonferrous castings cast in sand to the order of the buyer 
from the buyer's designs and specifications, except railroad car and 
locomotive journal bearings and castings, and semifinished or finished 
Street Railway Castings. 

(b) The term "Member of the Miscellaneous Non-Ferrous Sand 
Castings Division " means and includes, but without limitation, every 
individual, firm, partnership, association, corporation, or other entity 
engaged in business in the Miscellaneous Non-Ferrous Sand Castings 
Industry as above defined. 

2. Adoption of Code Submitted by Non-Ferrous Foundry Asso- 
ciation for Industrial Recovery. 

The members of the Miscellaneous Non-Ferrous Sand Castings Di- 
vision of the Non-Ferrous Foundry Industry hereby adopt and sub- 
mit as a part of this supplemental Code, the Code submitted for the 
Non-Ferrous Foundry Industry by the Non-Ferrous Foundry Asso- 
ciation for Industrial Recovery. 

3. Unfair Methods of Competition. 

For all purposes of the Code the acts described in this section shall 
constitute unfair practices. Any member of this Division of the 
Industry who shall, directly or indirectly, through any officer, em- 
ployee, agent, or representative use, employ, or permit to be employed 
any of such unfair practices shall be guilty of a violation of the Code. 

(a) To violate any of the provisions of this Code or amendments 
thereto. 

(b) To give, or permit to be given, to agents, to employees, or 
representatives of customers, or agents, employees, or representatives 
of competitors or of prospective customers, 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. This provision shall not be construed to prohibit 
free and general distribution of articles commonly used for adver- 
tising except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

(c) To undertake to do work or furnish castings on terms other 
than those set forth in the contract between the parties. 

(222) 



223 

(d) To withhold from, or insert 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; the 
payment or allowance of secret rebates, refunds, credits, unearned 
discounts, whether in the form of money or otherwise; or the exten- 
discounts, whether in the form of money or otherwise; or the 
sion to certain i:)urchasers of prices, services, or privileges not ex- 
tended to all purchasers under like conditions. 

(e) To purchase from customers goods, scrap, borings, and/or 
services at prices higher than the market for the purpose of influenc- 
ing or inducing the purchase of nonferrous castings. 

(f) To absorb all or any part of the machining cost of castings 
sold as machined castings. 

(g) To enter into quantity contracts with buyers without obliga- 
tion on their part to take delivery of the quantities specified in the 
contract or on the quotation, for the purpose of gi^'^ig special 
unwarranted prices. 

(h) To accept requirements contracts without a specific minimum 
which shall not be less than 75% of the maximum and without speci- 
fying a time limit, except where such contracts permit of a price 
adjustment at least once monthl}^ to conform with metal-market 
advances and/or declines. 

(i) 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 marking, branding, labeling products, and making 
statements regarding products, the purpose or effect of which may 
be misleading or tend to deceive purchasers as to the quantity, qual- 
it}'', grade, or substance of the goods purchased. 

(j) To cancel in whole or in part or voluntarily permit the can- 
cellation in whole or in part of any contract of sale of any product, 
except for a fair consideration which consideration shall include any 
expense incurred prior to acceptance of cancellation and any differ- 
ence due to a decline in metal market prices between date of order 
and date cancellation is requested. 

(k) To make any sale or contract of sale of any product of any 
description guaranteeing against a metal market decline. 

(1) To make any sale or contract of sale for any castings below 
seller's cost as determined by a system of cost accounting which con- 
forms to the principles of and is at least as detailed and complete as 
a uniform and standard method of cost accounting to be formulated 
and adopted by this Division and approved by the Administrator. 

(m) To guarantee the life or service of a nonferrous casting. 

(n) To quote a flat price per pound for a variety of castings of 
widely varying weight and/'or intricacy. 

(o) To absorb the cost of patterns, pattern alterations, tools, 
oranges, core drivers, chemical analyses and/or physical tests specified 
by the customer, or any special equipment in the cast price and/or 
charge for such equipment at lass than its cost as determined as 
provided in paragraph (1) hereof. 

(p) No provision of this supplemental Code shall be so construed 
as to hinder the development of new uses. 



Supplement to Code of Non-Ferrotjs Foundry Industry Submitted 
BY THE Aluminum Permanent Mold Castings Division of the 
Non-Ferrous Foundry Industry 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a supple- 
mental Code of Fair Competition for the Aluminum Permanent 
Mold Castings Division of the Non-Ferrous Foundry Industry. 

1. Definitions of Terms, 

(a) The term " aluminum permanent mold casting industry " 
means and includes that Division of the Non-Ferrous Foundry In- 
dustry, as defined, engaged in the business of producing aluminum 
and aluminum alloy castings made with permanent or semi-perma- 
nent molds and such equipment therefor as is regularly manufac- 
tured in plants of members of the Division, provided, however, that 
such term does not include the production of aluminum and aluminum 
alloy die castings and aluminum piston castings. 

(b) The term " members of the Aluminum Permanent Mold Cast- 
ings Division " means and includes, but without limitation, every in- 
dividual firm, partnership, association, corporation, or other entity 
engaged in business in the Aluminum Permanent Mold Castings In- 
dustry as above defined. 

2. Adoption of Code Submitted By The Non-Ferrous Foundry 
Association for Industrial Recovery. 

The members of the Aluminum Permanent Mold Castings Divi- 
sion of the Non-Ferrous Foundry Industry hereby adopt and sub- 
mit as a part of this supplemental Code, the Code submitted for the 
Non-Ferrous Foundry Industry by the Non-Ferrous Foundry Asso- 
ciation for Industrial Recovery. 

3. Unfair Methods of Competition. 

For all purposes of the Code the acts described in this section shall 
constitute unfair practices. Any member of this Division of the 
Industry who shall, directly or indirectly, through any officer, em- 
ployee, agent, or representative use, employ, or permit to be employed 
any of such unfair practices shall be guilty of a violation of the 
Code. 

(a) To violate any of the provisions of this Code or amendments 
thereto. 

(b) To give, or permit to be given, to agents or employees or 
representatives of customers, or agents, employees, or representatives 
of competitors or of prospective customers, 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. This provision shall not be construed to prohibit 
free and general distribution of articles commonly used for advertis- 
ing except so far as such articles are actually used for commercial 
brioery as hereinabove defined. 

(224) 



225 

(c) To undertake to do work or furnish castings on terms other 
than those set forth in tiie contract between the psirties. 

(d) To withhold from, or insert 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 ; the payment 
or allowance of secret rebates, refunds, credits, unearned discounts, 
whether in the form of money or otherwise ; or the extension to cer- 
tain purchasers of services or privileges not extended to all pur- 
chasers under like conditions. 

(e) To purchase from customers goods, scrap, borings, and/or 
services at prices higher than the market for the purpose of influenc- 
ing or inducing the purchase of non-ferrous castings. 

(f) To absorb all or any part of the machining cost of castings 
sold as machined castings. 

(g) To enter into quantity contracts with buyers without obli- 
gation on their part to take delivery of the quantities specified in 
the contract or on the quotation, for the purpose of giving special 
unwarranted prices. 

(h) To accept requirements contracts without a specific minimum 
which shall not be less than 75% of the maximum and without 
specifying a time limit, except where such contracts permit of a 
price adjustment on date of release of quantities under the contract. 

(i) 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 or 
his products ; or marking, branding, labelling products, and making 
statements regarding products, the purpose or effect of which may 
be misleading or tend to deceive purchasers as to the quantity, qual- 
ity, grade, or substance of the goods purchased. 

(j) To cancel in whole or in part or voluntarily permit the 
cancellation in whole or in part of any contract of sale of any 
product, except for a fair consideration, which consideration shall 
include any expense incurred prior to acceptance of cancellation 
and any difference due to a decline in metal market prices between 
date of order and date cancellation is requested. 

(k) To make any sale or contract of sale of any product of any 
description protecting against a metal market decline. 

(1) To make any sale or contract of sale for any castings below 
seller's cost as determined by a system of cost accounting which 
conforms to the principles of and is at least as complete and de- 
tailed as the system of cost accounting adopted by this Division 
and approved by the Administrator, provided, however, no provi- 
sion of this paragraph shall be so construed as to hinder the develop- 
ment of this Industry. 

(m) To guarantee the life or service of an aluminum permanent 
mold casting, provided, however, that nothing in this paragraph is 
to be so construed as to hinder the development of new uses. 

(n) To quote a flat price per pound for a variety of castings of 
widely varying weight and/or intricacy. 

(o) To absorb the cost of patterns, dies, permanent molds, tools, 
gauges, core driers, chemical analyses and/or physical tests specified 
by the purchaser, or any special equipment in the casting price 
and/or charge for such equipment at less than its actual cost in- 



226 

eluding direct labor, full overhead, materials, and supplies ; provided, 
however, in the case of development of new uses and/or new processes 
the cost of the development or the excess cost of molds over their 
cost of reproduction may not be charged to the customer. 

(p) To accept permanent mold equipment made by another perma- 
nent-mold manufacturer in this group and supplying production 
castings from such equipment, 

(q) To quote or accept orders for molds, dies, or any special equip- 
ment necessary to. the manufacture of a particular casting without 
including in the quotation or order an amount separate and apart 
from the cost of the casting sufficient to cover the cost of such molds, 
dies, or other special equipment, or to extend terms for the sale of 
such molds, dies, or special equipment other than net cash on ap- 
proval of samples or than the payment therefor in equal monthly in- 
stallments covering a period of not to exceed six (6) months. In the 
event that installment terms as herein provided are granted, there 
should be added a carrying charge at the rate of two percent (2%) 
per month for such period of time as such terms are granted. 

(r) To make any additional mold equipment to meet a customer's 
production requirements, without charging for same at not less than 
cost. 

(s) To give any cash discounts on billing or to extend terms of pay- 
ment for the purchase of the products of the industry for more than 
thirty (30) days. 

(t) To accept orders which do not specify a definite quantity or 
which extend the time of delivery beyond one hundred and twenty 
(120) days from date of order for new castings or ninety (90) days 
from date of order on reorders of castings previously furnished. 

(u) To cancel or renew the unfilled balance of any order at a lower 
price without a charge equivalent to any loss occasioned by a decline 
in the value of the metal as determined by the average price at date 
of order and date of cancellation average price of metal to be deter- 
mined as in the system of cost accounting as defined in paragraph 
(1) above. 

(v) To renew the unfilled balance of any order except that such 
renewal be subject to the provision of (1) above. 

4. The Following Shall Be Deemed Fair Methods of Competition 
for the Industry : 

(a) Where a member of the Aluminum Permanent Mold Castings 
Industry produces more than one product, each separate product 
shall be considered as a separate unit for the purpose of ascertaining 
costs and in determining such costs, fair and proper allocation of 
general expenses shall be allocated to the several units. 

(b) All quotations, orders, or contracts covering molds, to be used 
for supplying production castings^ shall contain a provision reading 
as follows : 

" The above-described molds will remain in our possession and 
control, and when, for three consecutive years, no orders are received, 
the molds will be considered as obsolete and may be destroyed by us 
after giving 30 days' notice thereof to the customer. The process of 
construction and operating these molds will not be disclosed to any- 
one except employees of our company." 



227 

(c) All quotations, orders, or contracts covering castings shall 
contain a provision reading as follows : 

" The molds from which the above-described castings will be made, 
will remain in our possession and control, and when, for three con- 
secutive years, no orders are received, these molds will be considered 
obsolete and may be destroyed by us after giving 30 days' notice 
thereof to the customer. The process of construction and operating 
these molds will not be disclosed to anyone except employees of our 
company." 



Supplement to Code of Non -Ferrous Foundry Industry Submitted 
BY THE Steel and Rolling Mill Castings Division of the Non- 
Ferrous Foundry Industry 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a supple- 
mental Code of Fair Competition for the Steel and Rolling Mill 
Castings Division of the Non-Ferrous Foundry Industry. 

1. Definition of Terms. 

(a) The term " Steel and Rolling Mill Castings Industry " means 
and includes that division of the Non-Ferrous Industry as defined, 
engaged in the business of producing nonferrous castings for steel 
plants and rolling mills except Blast Furnace Castings. 

(b) The term "Member of the Steel and Rolling Mill Castings 
Division " means and includes, but without limitation, every indi- 
vidual, firm, partnership, association, corporation, or other entity 
engaged in business in the Steel and Rolling Mill Castings Industry 
as above defined. 

2. Adoption of Code Submitted by Non-Ferrous Foundry Associa- 
tion for Industrial Recovery. 

The members of the Steel and Rolling Mill Castings Division of 
the Non-Ferrous Foundry Industry hereby adopt and submit as a 
part of this supplemental Code, the Code submitted for the Non- 
Ferrous Foundry Industry by the Non-Ferrous Foundry Association 
for Industrial Recovery. 

3. Unfair Methods of Competition. 

For all purposes of the Code the acts described in this section 
shall constitute unfair practices. Any member of this Division of 
the Industry who shall, directly or indirectly, through any officer, 
employee, agent or representative use, employ, or permit to be 
employed any of such unfair practices shall be guilty of a violation 
of the Code. 

(a) To violate any of the provisions of this Code or amendments 
thereto. 

(b) To give, or permit to be given, to agents or employees or 
representatives of customers, or agents, employees, or representatives 
of competitors or of prospective customers, 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. 

This provision shall not be construed to prohibit free and general 
distribution of articles commonly used for advertising except so far 
as such articles are actually used for commercial bribery as herein 
above defined. 

(c) To undertake to do work or furnish castings on terms other 
than those set forth in the contract between the parties. 

(228) 



229 

(d) To ■withhold from, or insert 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 ; the payment 
or allowance of secret rebates, refunds, credits, unearned discounts, 
whether in the form of money or otherwise; or the extension to cer- 
tain purchasers of prices, services, or privileges not extended to all 
purchasers under like conditions. 

(e) To purchase from customers goods, scrap, borings, and/or 
services at prices higher than the market for the purpose of influenc- 
ing or inducing the purchase of nonferrous castings. 

(f) To absorb all or any part of the machining cost of castings 
sold as machined castings except specialty castings. 

(g) To enter into quantity contracts with buyers without obliga- 
tion on their part to take delivery of the quantities specified in the 
contract or on the quotation, for the purpose of giving special 
unwarranted prices. 

(h) To accept requirements contracts without specifying a time 
limit, except where such contracts permit of price adjustments to con- 
form with metal market advances and/or declines at least once 
monthly. 

(i) 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 marking, branding, labelling products, and mak- 
ing statements regarding products, the purpose or effect of which may 
be misleading or tend to deceive purchasers as to the quantity, 
quality, grade, or substance of the goods purchased. 

(j) To cancel in whole or in part or voluntarily permit the can- 
cellation in whole or in part of any contract of sale of any product, 
except for a fair consideration, which consideration shall include any 
expense incurred prior to acceptance of cancellation and any diff- 
erence due to a decline in metal market prices between date of order 
and date of cancellation is requested. 

(k) To make any sale or contract of sale of any product of any 
description guaranteeing against a metal market decline. 

(1) To make any sale or contract for sale of any castings below 
seller's costs as determined by a system of cost accounting which 
conforms to the principles of, and is at least as detailed and complete 
as a standard method of cost accounting formulated and adopted by 
this Division and approved by the Administrator. 

(m) To guarantee the life or service of a nonferrous casting. 

(n) To quote a flat price per pound for a variety of castings of 
widely varying weight and/or intricacy, 

(o) To absorb the cost of patterns, dies, permanent molds, tools, 
gauges, core driers, chemical analyses, and/or physical tests specified 
by the purchaser or any special equipment in the casting price and/or 
charge for such equipment at less than its actual cost including direct 
labor, full overhead, materials, and supplies except specialty castings. 

(p) To accept any contract or order on a consignment basis. 



Supplement to Code of Nox-eeerous Foundry Industry Submitted 
BY the Blast Furnace Castings Division of the Non-Ferrous 
Foundry Industry 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a supple- 
mental Code of Fair Competition for the Blast Furnace Castings 
Division of the Non-Ferrous Foundry Industry. 

1. Definition of Terms. 

(a) The term "Blast Furnace Castings Industry" means and 
includes that Division of the Non-Ferrous Foundry Industry, as 
defined, engaged in the business of producing non-ferrous castings 
for Blast Furnaces, such as Tuyeres, Cinder Notches, Coolers, Bosh 
Mantle and Inwall Plates, Hot i31ast Valves, and Valve Seats. 

(b) The term " Member of the Blast Furnace Castings Division " 
means and includes, but without limitation, every individual, firm, 
partnership, association, corporation, or other entity engaged in busi- 
ness in the Blast Furnace Castings Industry as above defined. 

2. Adoption of Code Submitted by Non-Ferrous Foundry Associa- 
tion for Industrial Recovery. 

The members of The Blast Furnace Castings Division of the Non- 
Ferrous Foundry Industry hereby adopt and submit as a part of this 
supplemental Code, the Code submitted for the Non-Ferrous Foun- 
dry Industry by the Non-Ferrous Foundry Association for Indus- 
trial Recovery. 

3. Unfair Methods of Competition, 

For all purposes of the Code the acts described in this section 
shall constitute unfair practices. Any member of this Division of 
the Industry, who shall, directly or indirectly, through any officer, 
employee, agent, or representative use, employ, or permit to be em- 
ployed any of such unfair practices shall be guilty of a violation 
of this Code. 

(a) To violate any of the provisions of this Code or amendments 
thereto. 

(b) To make or promise to any purchaser or prospective purchaser, 
or to any officer, employee, agent, or representative of any such pur- 
chaser or prospective purchaser, any bribe, commission, or split com- 
mission, gratuity, gift, or other payment or remuneration directly 
or indirectly. 

This provision shall not be construed to prohibit free and general 
distribution of articles commonly used for advertising except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

(c) To withhold from or insert 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, the pay- 
ment or alloAvance of secret rebates, refunds, credits, uiiearned dis- 

(230) 



231 

counts, whether in the form of money or otherwise ; or the extension 
to certain purchasers of services or privileges not extended to all 
purchasers under like conditions. 

(d) To extend to any purchaser special concessions in the nature 
of free machining not standard as of July 1, 1933, and defined as 
follows : 

Tuyeres — Drill and Tap Holes. 

Machine Seat for Blow Pipe. 

Cinder notches — Tuyere Coolers. 

Notch (or intermediate) Coolers. 

Bosh Plates, Mantle (In wall) Plates. 

Drill and Tap Holes. 

Hot blast valves and hot blast valve seats — Follow blueprint fur- 
nished by purchaser. To remachine a valve or seat after it has been 
shipped to a purchaser (except to correct an error) constitutes an 
unfair method of competition. 

To machine outside surface of tuyere fit or inside surface of cooler 
fit without charging purchaser full cost of such extra machining in 
addition to per-pound price constitutes an unfair method of com- 
petition. However, filing or grinding smooth where necessary is 
allowable without extra charge. 

(e) To enter into quantity or period contract with any purchaser 
without obligation on purchaser's part to take specified minimum 
poundage which shall not be less than 75% of the maximum, except 
where such contracts permit of price adjustments to conform with 
metal market advances and/or declines at least once monthly. 

(f) In case of change or cancellation of order in process, pur- 
chaser shall be charged full amount of expense incurred prior to 
acceptance of cancellation and any difference due to a decline in 
metal-market prices between date of order and date of cancellation 
is requested. 

(g) To make any sale or contract of sale guaranteeing against a 
metal-market decline. 

(h) To make any sale or contract of sale for any castings below 
cost as determined by a system of cost accounting adopted by this 
division and approved by the Administrator. 

(i) To guarantee the life of a Blast Furnace Casting. 

(j) To requote a price lower than a competitor's price after being 
advised what that competitor's price is. 

(k) To accept any contract or order on a consignment basis, or 
with the understanding that shipment is to be held back pending 
customer's specification, or on any other delivery basis than that 
of shipping when ready, and invoicing as of date of shipment and 
on terms specified in paragraph (1). 

(1) Terms of payment shall be: Net 30 days from date of ship- 
ment. A discount of 1/2 of 1% may be allowed for earlier payment. 

(m) All shipments shall be invoiced in cents per pound for the 
actual shipping weight. 

Approved Code No. 165. 
Registry No. 1111-05. 

o 



Approved Code No. 166 
CODE OF FAIR COMPETITION 

FOR THE 

WAXED PAPER INDUSTRY 

As Approved on December 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 



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

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

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dniinwtrator. 

The White House, 

Decemher 18, 1933. 

27712° 2'J6-i;C a^ ^233) 



December 12, 1933. 

The President, 

The White House. 
Sir : This is a report of the hearing on the Code of Fair Com- 
petition for the Waxed Paper Industry, conducted in Washington 
on October 21, 1933, in accordance with the provisions of Title I 
of the National Industrial Recovery Act. 

Hours and Wages 

The Code provides for a standard forty-hour week with provision 
for averaging to meet peak demands and for overtime for hours 
worked in excess of eight per day. The usual exceptions are made 
in relation to incidental nonproducing employees. 

The minimum wage rate is 40^ per hour in the North and 350 
per hour in the South with a female differential of 50 in both cases. 
Women doing the same work as men must receive the same pay. 
The minimum for office employees is $16.00 per week in cities of 
25,000 or more and $15.00 in smaller places. 

Other Provisions 

The Code contains the usual provisions for filing reports and 
an open price selling plan. 

Economic Effect or the Code 

The business of this industry is the manufacture of waxed paper. 
The use of this material for food wrapping purposes has been 
steadily growing. Consequently there is no unemployment in the 
industry. There were about 1,900 employees in 1929, and this 
number will be increased to about 2,900 under the Code. 

Total pay rolls have or will be increased by about one quarter 
million dollars. 

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 
Waxed Paper 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 submitted. 

Hugh S. Johnson, 

Adininistrator. 

(234) 



CODE OF FAIR COMPETITION 

FOR THE 

WAXED PAPER 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 above-named Industry and shall be binding on 
every member thereof. 

Article I — Definitions 

The following words are used in this Code with the meanings 
herein set forth. 

" Industry " — Coating and/or impregnating paper (but not paper- 
board) with paraffin or mineral oil, but excluding the processing of 
paper for use as fruit wrappers and the processing of oiled-shredded 
paper for fruit packing. 

" Member " — A natural person, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy or receiver engaged in such 
Industry. 

" Act " — Title I of the National Industrial Recovery Act. 

" Administrator " — (The National Industrial Recovery Administra- 
tor. 

Article II — Organization and Administration 

1. The members of the Executive Committee of the American 
Waxed Paper xlssociation, together with such other person or persons 
as the Administrator may designate are hereby constituted the Code 
A ithority of the Industry. The members of the Code Authority 
designated by the Administrator shall act in an advisory capacity 
and shall have no vote. 

2. The said Association shall file with the Administrator certified 
copies of any amendments of its Bylaws relating to eligibility or 
admission to membership in such Association, or relating to the 
method of selection of the members of such Executive Committee, 
which such Association may hereafter adopt. 

3. The Administrator may at any time prescribe a different method 
for selecting the Industry members of the Code Authority, and 
thereafter, such members shall be chosen in the manner so prescribed. 

4. The Code Authority is charged generally with the duty ol 
administering this Code under the sanction and with the approval 
of the Administrator. All acts of the Code Authority shall be sub- 
ject to review by the Administrator and to suspension, modification, 
or cancellation by him in any case in which he shall determine that 
such act violates the purpose of the National Industrial Recovery Act 

(235) 



236 

5. The expenses of administering this Code shall be borne pro 
rata, in accordance with a formula to be adopted by the Code Au- 
thority, by all members of such Industry who accept the benefit of 
the services of the Code Authority or otherwise assent to this Code. 

6. The Code 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 
tend or may tend to render ineffective this Code and to report tho 
same with recommendations to the Administrator. 

Article III — Hours of 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, engineers, and firemen: One hundred 
sixty-eight (168) hours in any period of four (4) consecutive weeks, 
provided, however, that time worked in excess of nine (9) hours 
in one day shall be paid for as not less than time and one third. 

(c) All other laborers, mechanical workers, or artisans employed 
in any plant, mill, or factory or on work connected with the operation 
of such plant, mill, or factory : An average of forty (40) hours per 
week in any period of twenty-six (26) consecutive weeks, but not 
more than forty-eight (48) hours in any one week, provided, how- 
ever, that time worked in excess of eight (8) hours in any one day 
shall be paid for as not less than time and one third. 

(d) Executives and their personal secretaries and other employees 
engaged in a supervisory capacity and chemists receiving $35 or more 
per week and outside salesmen : No limitation. 

(e) All other employees: An average of forty (40) hours per week 
in any period of tliirteen (13) consecutive weeks, but not more than 
forty-eight (48) hours in any one week. 

2. No limitation contained in said Schedule shall apply to em- 
ployees of any class when engaged in emergency repairs or emer- 
gency maintenance work occasioned by break-downs or involving pro- 
tection of life or property; provided, however, that time worked 
under this section in excess of eight (8) hours in any one day and 
forty (40) hours in any one week shall be paid for as not less than 
time and one third. 

3. No employee shall be permitted to work for two or more mem- 
bers of the industry an aggregate number of hours in excess of the 
number prescribed in said Schedule. 

4. No member shall operate his plant in excess of 144 hours per 
week. 

Article IV — ^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- 



237 

nected with the operation of any such plant, mill, or factory shall 
be as follows : 

(a) Northern Zone, which shall consist of all of the territory of 
the United States except the States named in subdivision (b) : 

Male labor, 40 cents per hour 
Female labor, 35 cents per hour 

(b) Southern Zone, which shall consist of the States of Virginia, 
Kentucky, Tennessee, North Carolina, South Carolina, Georgia, Flor- 
ida, Alabama, Mississippi, Louisiana, Arkansas, and Texas: 

Male labor, 35 cents per hour 
Female labor, 30 cents per hour 

2. Pieceworkers shall be paid at rates which will yield a worker 
for an hour's work not less than the minimum rate above prescribed. 

3. The minimum rates of wages for all other employees except 
commission salesmen shall be as follows : Sixteen dollars ($16) per 
week in any city of 25,000 population or over, and fifteen dollars 
($15) per week in any city or town of less than 25,000 population. 

4. Female employees performing substantially the same work 
under the same conditions as male employees shall receive the same 
rate of pay as male employees. The Code Authority shall within 
90 days after the effective date of this Code file with the Adminis- 
trator a description of all occupations in the Industry in which 
both men and women are employed. 

5. The wage rates of all employees receiving more than the mini- 
mum rates herein prescribed shall be reviewed and such adjust- 
ments, if any, made therein as are equitable in the light of all the 
circumstances, and within sixty (60) 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 age or 
physical or mental handicap may be employed on light work at a 
wage of not less than 80% of the minimum prescribed by this Code, 
provided the State Authority designated by the United States 
Department of Labor shall have issued a certificate authorizing his 
employment on such basis. Each member shall file with the Code 
Authority a list of all such persons employed by him. The pro- 
vision of this Section requiring a certificate of authority shall not 
become effective ui^til sixty days after the effective date of this 
Code. 

7. Office bo3''s and girls under 18 years of age may be employed 
at a wage of not less than 80% of the minimum prescribed by 
Section 3 hereof, provided that not more than 5% of the employees 
of such class may be paid as office boys and girls. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the Industry. No person under eighteen (18) years of age shall 
be employed at operations or occupations which are hazardous in 
nature or dangerous to health. The Code Authority shall submit 
to the 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 complied with this provision 



238 

as to age if he shall have on file a certificate or permit duly signed 
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. No em- 
ployee and no one seeking employment shall be required as a con- 
dition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of his 
own choosing. Employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of employment, 
approved or prescribed by the President. 

3. No provision in this Code shall supersede any State or Federal 
law which imposes on employers more stringent requirements as to 
age of employees, wages, hours of work, or as to safety, health, sani- 
tary or general working conditions or insurance or fire protection, 
than are imposed by this Code. 

4. 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. 

5. AH employers shall post copies of Articles III, IV, and V of 
this Code in conspicuous places accessible to employees. 

6. Every employer shall make reasonable provisions 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 sub- 
mitted by the Code Authority to the Administrator within six (6) 
months after the effective date of this Code. 

7. No provision in this Code shall supersede provisions as to hours, 
wages, and conditions of employment which are established for 
specific projects by competent governmental authority actin,g in 
accordance with law, or to terms of employment which are estab- 
lished by labor agreements now in force, where either the wages are 
higher or the hours of labor are shorter, or both than are those set 
forth in this Code. 

8. The Code Authority shall make a study of conditions in the 
industry to determine the feasibility of the adoption of a shorter 
working week and shall, within three (3) months after the effective 
date of this Code, make a report of its findings to the Adminis- 
trator. The Code 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 employment. 

Article VI — Accounting — Selling 

1. The Code Authority shall, as soon as practicable, formulate a 
standard method of accounting and costing for the industry and 
submit the same to the Administrator. Any such method shall pro- 
vide means for determining the price at which paper shall be charged 
to the converting division of a combined paper manufacturing and 



239 

converting plant. "\Mien such method shall have been approved by 
the Administrator, cveiy 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 30 days after the effective 
date of this Code, file with the Code Authority complete schedules in 
such form as the Code Authority shall prescribe of prices and terms 
and conditions of sale for domestic consumption (including all differ- 
entials, discounts, trade allowances, and special charges), of all prod- 
ucts offered for sale by such member, and shall so file all subsequent 
changes therein or revisions thereof at least five days prior to the 
effective time of any such changes or revisions. When any member 
shall file any such schedule or any revision thereof, any other mem- 
ber may also file a revision of his own schedule to become effective 
as of the same time as such first mentioned schedule. The Code 
Authority shall, upon request, furnish any person concerned, whether 
or not a member of the Industry, a copy of all such schedules and 
of all changes and revisions thereof. 

3. No such schedule of prices and terms and conditions of sale 
filed by any member, or in effect, at any time shall 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, which cost shall be 
determined pursuant to the method of accounting and costing pre- 
scribed by the Code Authority under this Article as soon as that 
method is prescribed and theretofore pursuant to the method em- 
ployed by such member subject to such preliminary rules as the Code 
Authority shall 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 
subdivision (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 justi- 
fying 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 cancellation or revision upward 
of such justifying schedule or schedules. 

4. The Code Authority shall have powder on its own initiative, or 
on the complaint of any member, to investigate any price for any 
product shown in any Schedule filed hereunder, and for such pur- 
pose to require the member who filed such Schedule to furnish such 
information concerning the cost of manufacturing such product as 
the Code Authority shall deem necessary or proper for such purpose. 
If the Code Authority, after such investigation shall determine that 
such price violates the provisions hereof, the Code Authority shall so 
notify such member, and thereupon such price shall become void and 
of no effect. All such decisions by the Code Authority shall be filed 
with the Administrator. 

5. Except in fulfillment of bona fide contracts existing on the 
effective date of this Code, no member shall sell any products of the 
Industry for domestic consumption at a price or prices lower than or 
upon terms or conditions more favorable than stated in his price 



240 

schedules then on file, provided, however, that discontinued lines or 
damaged goods or seconds or distress merchandise required to be 
sold to liquidate a defunct business, may be disposed of in such man- 
ner and on such terms and conditions as the Code Authority may 
approve. 

6. The Code Authority may suspend for any period of time, and 
from time to time, all or any of the provisions of Sections 2, 3, 4, and 
5 hereof as to any specified product or products of the Industry. 

7. Selling of waxed paper on consignment is prohibited. 

Article VII — Kepoets and Statistics 

1. Each member shall prepare and file with an impartial agent 
designated by the Code Authority at such times and in such manner 
as it may prescribe such statistics, data, and information relating 
to plant capacity, volume of production, volume of sales in units 
and dollars, orders received, unfilled orders, stocks on hand, inven- 
tory, both raw and finished, number of employees, wage rates, em- 
ployee earnings, hours of work, and other matters as the Code 
Authority or the Administrator may from time to time require. 
Any or all information so furnished by any member 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 disin- 
terested accountant or accountants or other qualified person or per- 
sons designated by the Code 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 shall be confidential and the statis- 
tics, 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 man- 
ner as to avoid the disclosure of confidential information. The Code 
Authority shall arrange in such manner as it may determine for 
the publication currently to members totals of orders received, 
unfilled orders, shipments, stocks of finished goods on hand, ana 
production. 

3. The Code Authority shall make such reports to the Adminis- 
trator as he may from time to time require. 

4. In addition to information required to be submitted to the 
Code Authority there shall be furnished to Government Agencies 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act. 

Article VIII — Recommendations 

1. The Code Authority may from time to time 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 for the codification of its trade customs and the 
enforcement thereof. 



241 

(b) For restrictions on the creation of new facilities for the 
manufacture of any product of the industry or on the acquisition 
by any member of new equipment for such manufacture. 

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

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 affect only that part of his 
business which is included in this industry. 

2. Any work or process incidental to and carried on by a mem- 
ber at his plant as a part of the manufacture of any product of the 
industry shall be regarded as a part of this industry. 

3. Such of the provisions of this Code as are not required to be 
included therein by the Act may, with the approval of the President 
of the United States, be modified or eliminated as changes in cir- 
cumstances or experience may indicate. 

4. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions of Section 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, but without limitation, 
to the right of the President to cancel or modify his approval oi 
such code or any conditions imposed by him upon his approval 
thereof. 

5. 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. 

Approved Code. No. 166. 
Registry No. 411-01. 

o 



Approved Code No. 167 
CODE OF FAIR COMPETITION 

FOR THE 

SET UP PAPER BOX MANUFACTURING INDUSTRY" 

As Approved on December 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 



An application having been duly made, pursuant to and in full 
compliance with the provisions of title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for the Set Up Paper Box 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 
iiflvp nppri lYipf^ ' 

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

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

A dministrator. 

The White House, 

December 18, 1933. 

2T741° 296-25 33 (243) 



December 15, 1933. 
The President, 

The White House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Set Up Paper Box Manufacturing Industry, conducted 
in Washington on October 3, 1933, in accordance with the provisions 
of Title I of the National Industrial Recovery Act. 

HOURS AND WAGES 

The niaxinium hours for factory workers prescribed by this Code 
are forty per Aveek, with an annual tolerance of seven and one half 
percent, but not more than forty-eight hours in any one week. 
Members of the industry may adopt a standard work day for factory 
employees of either eight or ten hours, overtime to be paid for all 
hours worked in excess of forty per week or in excess of the standard 
work da5\ OiRce employees are to be restricted to forty hours per 
week averaged over a period of thirteen weeks, but not more than 
forty-eight hours in any one week. Chauffeurs and truckmen are 
limited to an average of forty hours per week in any period of four 
consecutive weeks; engineers and firemen to forty-two hours in the 
same period, with overtime provided for time worked in excess of 
nine hours per day, and watchmen to fifty-six hours per week. Home 
work and the employment of women between 10 : 00 P.M. and 6 : 00 
A.M. are prohibited. 

The Code provides minimum wage rates of 371/2^ per hour for 
factory workers in the North, with a 5^ differential for women, and 
321/2^ in the South, with a 21/2^ female differential. It is provided 
that women doing the same work as men shall receive the same pay. 
These rates represent a great increase over the minimum wages now 
being paid, particularly for female workers, who comprise about 
sixty percent of the total force of this industry. The average rate 
for women in May 1933 was 31^ an hour, the minimum wage in 
1932-33 being as low as 10^ per hour. For this same period, for both 
men and women, 671/2% of the factory jobs paid minimum rates of 
less than 25(* per hour. 

ECONOMIC EFFECT OF THIS CODE 

This industr}^ produces paperboard boxes used for packaging and 
display purposes. These boxes are distinguished from other paper- 
board containers in that they are delivered to the user " set up " in 
rigid form and ready for use. It is this distinction which differen- 
tiates the set-up box from the folding box, one of the chief competi- 
tive items. There are at present about 800 firms engaged in the indus- 
try, employing about 35,000 workers. 

In recent years set-up boxes have been replaced to a large extent 
by other containers, such as folding boxes and transparent cellulose 
bags. 

(244) 



245 

There were about 40,000 employees in the Industry in 1929. This 
fell off to al)out 29,000 in 1932 and increased, as a result of the PRA, 
to about 35,000 in August 1933. It is estimated that under the Code 
the number will increase somewhat further, but because of the decline 
of the Industry it is improbable that the 1929 figure will be reached. 
The wage rates proposed bj' the Code will increase the total pay roll 
of the industry by about 20%, 

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 tho 
Set-Up Box Industry; and that 

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

It is recommended, therefore, that this Code be approved. 
ResjDectfully submitted. 

Hugh S. Johnson, 

A dministrator. 



CODE OF FAIR COMPETITION 

FOR THE 

SET UP PAPER BOX MANUFACTURING INDUSTRY 



To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following is hereby established as a Code of Fair 
Competition for the above-named Industry and shall be binding on 
every member thereof. 

Article I — Definitions 

The following words are used in this Code with the meanings 
herein set forth. 

" Industry " — The manufacture of boxes made from paperboard 
and other accessory materials, which, in ordinary and regular prac- 
tice are delivered to the customer fully erected and fabricated, in- 
cluding boxes manufactured by a member for his own use, and in- 
cluding jewelry boxes, cases, and displays, whether made of paper- 
board or not. 

" Member " — A natural person, partnership, corporation, associa- 
tion, trust, trustee in bankruptcy, or receiver engaged in such 
industry. 

" Act " — Title I of the National Industrial Recovery Act. 

" Administrator " — The National Industrial Recoveiy Adminis- 
trator. 

Article II — Organization and Administration 

1. The members of the Executive Committee of the National 
Paper Box Manufacturers Association, together with such other 
person or persons as the Administrator may designate are hereby 
constituted the Code Authority of the Industry. The members of 
the Code Authority designated by the Administrator shall act in 
an advisory capacity and shall have no vote. 

2. The said Association shall file with the Administrator certified 
copies of any amendments of its Bylaws relating to eligibility or 
admission to membership in such Association, or relating to the 
method of selection of the members of such Executive Committee, 
which such Association may hereafter adopt. 

3. The Administrator may at any time prescribe a different method 
for selecting the Industry members of the Code Authority, and 
thereafter such members shall be chosen in the manner so pre- 
scribed. 

4. The Code Authority is charged generally with the duty of ad- 
ministering this Code under the sanction and with the approval of 
the Administrator. All acts of the Code Authority shall be subject 

(246) 



247 

to review by the Aclministrator, and to suspension, modification, or 
cancellation by him, in any case in which he shall determine that 
any such act violates the purposes of the National Industrial Recov- 
ery Act. 

5. The expenses of administering this Code shall be borne pro 
rata, in accordance with a formula to be adopted by the Code 
Authority, by all members of such Industry who accept the benefit 
of the services of the Code Authority or otherwise assent to this 
Code. 

6. The Code 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 
tend or may tend to render ineffective this Code and to report the 
same with recommendations to the Administrator. 

Article III — Houks of 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: Fifty-six (56) hours in any one week, but no 
such employee shall be worked more than six (6) days in any seven 
(7) day period. 

(b) Chauffeurs and truckmen: An average of forty (40) hours 
per week in any period of four (4) consecutive weeks. 

(c) Engineers and firemen: An average of forty-two (42) hours 
per week in any period of four (4) consecutive weeks. All time 
worked in excess of nine (9) hours in any one day shall be paid 
for at not less than time and one third. 

(d) All other laborers, mechanical workers, or artisans employed 
in any plant, mill, or factory, or on work connected with the oper- 
ation of such plant, mill, or factory: Forty (40) hours per week 
with an annual tolerance of seven and one half percent (7^^%), 
but not more than forty-eight (48) hours in any one week. The 
standard work day shall be eight (8) hours, provided, however, 
that any member may elect to adopt a standard work day of ten 
(10) hours. All time worked in excess of forty (40) hours in any 
one week or in excess of the individual member s standard work 
day, or on the fifth or following day in any calendar week, when 
the member has elected the ten hour day, shall be paid for as not 
less than time and one third. Any member who elects to adopt the 
standard work day of ten (10) hours shall file notice of such elec- 
tion with the Code Authority and may not revert to a standard 
eight (8) hour day for a period of at least one year thereafter, and 
on so doing, shall give notice thereof to the Code Authority. 

(e) Executives and their personal secretaries and other employees 
engaged in a supervisory capacity receiving $35.00 or more per week 
and outside salesmen : No limitation. 

(f) All other employees: An average of forty (40) hours per 
week in any period of thirteen (13) consecutive weeks, but not more 
than forty-eight (48) hours in any one week. 



248 

2. No limitation contained in said Schedule shall apply to em- 
ployees of any class when engaged in emergency repairs or emergency 
maintenance work occasioned by break-downs or involving protection 
of life or property. All hours worked under this section in excess 
of the limitations prescribed in this Article shall be paid for as not 
less than time and one third. 

3. No employee shall be permitted to w^ork for two or more, mem- 
bers of the Industry an aggregate number of hours in excess of the 
number prescribed in said Schedule. 

4. Female employees shall not be permitted to Avork between the 
hours of 10 : 00 P.M. and 6 : 00 A.M. 

5. All time worked on Sunday shall be paid for as not less than 
time and one third, provided, however, that watchmen shall be 
exempt from this provision. 

Article IV — Wages 

1. The minimum rate of Avage 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 comprise all States except those 
listed in subsection (b) : 

Male : 371/2^ per hour. 
Female : 32%^ per hour. 

(b) Southern zone, which shall comprise the States of Virginia, 
Kentucky, North Carolina, South Carolina, Georgia, Florida, Ala- 
bama, Tennessee, Louisiana, Mississippi, Arkansas, Texas, and 
Oklahoma : 

Male 321/2^ per hour. 
Female : 30^ per hour. 

2. Pieceworkers shall be paid at rates which will yield a worker 
for an hour's work not less than the minimum rate above prescribed. 

3. The minimmn rate of wages for all other employees except 
commission salesmen shall be as follows : Fourteen dollars ($14) 
per week. 

4. Female employees performing substantially the same work 
under the same conditions as male employees shall receive the same 
rate of pay as male employees. The Code Authority shall within 
90 days after the effective date of this Code file with the Adminis- 
trator a description of all occupations in the Industry in which both 
men and women are employed. 

5. The wage rates of all employees receiving more than the mini- 
mum rates herein prescribed shall be reviewed and such adjust- 
ments, if any, made therein as are equitable in the light of all the 
circumstances, and within forty-five (45) 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 age or 
physical or mental handicap may be employed on light work at a 
wage of not less than 80% of the minimum prescribed by this 
Code, provided the State Authority designated by the United States 
Department of Labor shall have issued a certificate authorizing 



249 

his employment on giich basis. Each member shall file with the 
Code Authority a list of all such persons employed by him. The 
provision of this Section requiring a certificate of authority shall 
not become effective until sixty days after the effective date of 
this Code. 

AjMICI.K A' (iKNKKAl- LaBOU PhOVISIONS 

1. No person undei- sixteen (16) years of age shall be employed in 
the Industr}'. No person under eighteen (18) years of age shall be 
employed at opei-ations or occupations 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 complied Avith this provision 
as to age if he shall have on file a certificate or permit duly signed 
by the authority in such State empowered to issue employment or 
age certificates or permits, sliowing that the emplo3'^ee 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. No em- 
ployee and no one seeking emi)loyment 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. No provision in this Code shall supersede any State or Federal 
law w'hich imposes on employers more stringent requirements as to 
age of emploj^ees, wages, hours of work, or as to safety, health, sani- 
tary' or general working conditions, or insurance or fire protection, 
than are imposed by this Code. 

4. After January 1, 1934, the manufacture or partial manufacture 
of any product of this Industry in the home of a worker shall be 
prohibited. 

5. No employer shall reclassif}' employees or duties of occupations 
performed or engage in any other subterfuge for the purpose of de- 
feating the purposes or provisions of the Act or of this Code. 

6. All employers shall post copies of Articles III, IV, and V 
of this Code in conspicuous places accessible to employees. 

7. Ever)' employer shall make reasonable provisions for the safety 
and health of his emploj-ees at the place and during the hours of 
their employment. Standards for safety and healtli shall be sub- 
mitted by the Code Authority to the Administrator within six (6) 
months after the effective date of this Code. 

8. No provision in this Code shall supersede i)r()visi()ns as to 
hours, wages, and conditions of employment which are established 
for specific projects by competent governmental authority acting 
in accordance with law, or to terms of employment which are estab- 
lished by labor agreements now in force, where either the wages are 



250 

higher or the hours of labor are shorter, or both, than are those 
set forth in this Code. 

9. The Code Authority shall make a study of conditions in the 
Industry to determine the feasibility of the adoption of a shorter 
working week and shall, within three (3) months after the effec- 
tive date of this Code, make a report of its findings to the Admin- 
istrator. The Code Authority shall also submit to the Adminis- 
trator within six (6) months after the effective date of this CodCj a 
plan for the stabilization and regularization of employment. 

Article VI — Accounting — Selling 

1. The Code Authority shall, as soon as practicable, formulate a 
standard method of accounting and costing for the Industry and 
submit the same to the Administrator. When it shall have been 
approved by the Administrator, every member shall use an account- 
ing 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 30 days after the effective 
date of this Code, file with the Code Authority complete schedules 
in such form and with respect to such items as the Code Authority 
shall prescribcj of prices, terms, and conditions of sale for domestic 
consumption (including all differentials, discounts, trade allowances, 
special charges, and practice regarding samples) of all products 
offered for sale by such member, and shall so file all subsequent 
changes therein or revisions thereof at least 24 hours prior to the 
effective time of any such changes or revisions. The Code Au- 
thority shall, upon request, furnish any person concerned, whether 
or not a member of the Industry, a copy of all such schedules and 
of all changes and revisions thereof. 

3. Except in fulfillment of bona fide contracts existing on the 
effective date of this Code, no member shall sell any products of 
the Industry for domestic consumption at a price or prices lower 
than or upon terms or conditions more favorable than stated in 
his price schedules then on file, provided, however, that discon- 
tinued lines or damaged goods or seconds or distress merchandise 
required to be sold to liquidate a defunct business, may be dis- 
posed of in such manner and on such terms and conditions as the 
Code Authority may approve. 

4. No member shall sell any product of the industry at less than 
the cost thereof to such member, which cost shall be determined 
pursuant to the method of accounting and costing prescribed by 
Section 1 of this Article as soon as such method is prescribed and 
theretofore pursuant to the method employed by such member sub- 
ject to such preliminary rules as the Code Authority shall from 
time to time prescribe, provided, however, that a member may sell 
at a lower price when necessary to meet competition but at not less 
than the lowest price not in violation of this Code offered by any 
competitor. 

5. Contracts for future delivery shall provide that final delivery 
completing such contracts shall be made either within a period of 
six months from the date of such contracts or before the end of the 
calendar year, but not both. 



251 

6. The Code Authority may prepare and fubmit to the Adminis- 
trator for his approval a standard order, irivoice, or acknowledg- 
ment form that shall embody all the terms and conditions of sale, 
including price, description, discount and discount period, arbitra- 
tion, packing and delivery charges, delivery date, a statement of the 
tolerance for overruns or underruns, and such other conditions as 
the Code Authority may adopt protecting fairly and equitably the 
relations between the seller and the buyer, and the same when so 
approved shall be used by all members of the Industry. 

7. When the standard form provided for in Section 6 of this 
Article shall have been approved by the Administrator the Code 
Authority may from time to time require that any or all members 
of the Industry shall file with the Executive Secretary of the Code 
Authority, within twenty-four (24) hours after the mailing* thereof 
to customers, duplicates of all invoices covering shipments made by 
such members. 

Article VII — Reports and Statistics 

1. Each member shall prepare and file with the Executive Secretary 
of the Code Authority at such times and in such manner as it may 
prescribe, such statistics, data, and information relating to plant ca- 
pacity, 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 other matters, as the Code Authority or the Ad- 
ministrator may from time to time require. Any or all information 
so furnished by any member shall be subject to checking for the pur- 
pose of verification by an examination of the books and accounts and 
records of such member by any disinterested accountant or account- 
ants or other qualified person or persons designated by the Code 
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 shall be confidential and the statistics, 
data, and information of one member shall not be revealed to another 
member. No such data or information shaU be published except 
in combination with other similar data and in such a manner as to 
avoid the disclosure of confidential information. The Code Author- 
ity shall arrange, in such manner as it may determine, for the publica- 
tion currently to members totals of orders received, unfilled orders, 
shipments, stocks of finished goods on hand, production and labor 
statistics. 

8. The Code Authority shall make such reports to the Administra- 
tor as he may from time to time require. 

4. In addition to information required to be submitted to the 
Code Authority there shall be furnished to Government Agencies 
such statistical information as the Administrator may deem nece.ssary 
for the purposes recited in Section 3 (a) of the Act. 

Article VIII — Trade Practices 

1. FcAse Billing. — No member shall withhold from or insert in 
any quotation or invoice any statement that makes it inaccurate in 
any material particular. 



252 

2. Interference with contracts. — No member shall attempt to in- 
duce the breach of an existing contract between a competitor and his 
employee or customer or source of supply; nor shall such member 
interfere with or obstruct the performance of such contractual duties 
or services. 

3. G oin/mercidl Bribery. — No member shall attempt to secure orders 
or business by the giving or offering of gifts of money or anything 
of value to customers, their employees, or anyone acting in their 
behalf. The free distribution of articles commonly used for advertis- 
ing, provided that such articles are given to the trade generally, is 
not hereby prohibited. 

4. Misrepresentation. — No member shall misrepresent his products* 
or the materials of which they are made, or substitute inferior 
materials without the knowledge of the purchaser, or describe such 
products in a manner which tends to deceive customers. 

5. Piracy of Design. — No member shall reproduce or copy without 
the written consent of the originator, an original package or design, 
which shall have been filed with the Executive Secretary of the Code 
Authority in accordance with such regulations as the Code Authority 
may prescribe. Protection of such origination shall be limited to 
two years from the date of filing. 

6. Claiming Code Participation. — No member shall represent that 
he is a participant in this Code unless he shall have participated in 
the expense of administration thereof. 

7. False Information to Code Authority. — Furnishing false infor- 
mation to the Code Authority, or to the Executive Secretary there- 
of, shall be a violation of this Code. 

Article IX — Recommendations 

1. The Code Authority may, from time to time, 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 additional rules of fair trade prac- 
tice for the Industry and for the codification of its trade customs, 
and the enforcement thereof. 

(b) For the establishment of plans to bring about a reasonable 
balance between the production and consumption of the products 
of the Industry. 

Such recommendations when approved by the Administrator shall 
have the same force and effect as the provisions of this Code. 

Article X — General Provisions 

1. If any member is also a member of another Industry, the pro- 
visions of this Code shall apply to and affect only that part or his 
business which is included in this Industry. 

2. 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 this Industry. 

3. Such of the provisions of this Code as are not required to be 
included therein by the Act, may, with the approval of the Presi- 
dent of the United States, be modified or eliminated as changes in 
circumstances or experience may indicate. 



253 

4. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions of Section 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, but without limitation, 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. 

5. 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. 

Approved Code No. H57. 
Registry No. 40(>-03. 



Approved Code No. 168 
CODE OF FAIR COMPETITION 

FOR THE 

REFRACTORIES INDUSTRY 

As Approved on December 18, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application havino; been duly made, pursuant to and in full 
compliance with the j^rovisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Refractories Industrj^, and hearings 
having been held thereon and the Administrator having rendered 
his report containing an analysis of the said Code of Fair Competi- 
tion, together with his recommendations and findings with respect 
thereto, and the Administrator having found that the said Code of 
Fair Competition complies in all respects with the pertinent provi- 
sions of Title I of said Act and that the requirements of Clauses (1) 
and (2) of subsection (a) of Section 3 of the said Act have been 
met : 

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

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

December 18, 1933. 

27040° 2'J6 — 168 33 (255) 



December 5, 1933. 

The President, 

The White IJouse. 
Sir : This is a report on the Code of Fair Competition for the 
Refractories Industry, the hearing having been held in Washington 
on the 25th day of October in accordance with the provisions of the 
National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employment is limited to eight hours per day and forty hours per 
week to be averaged over a thirty-day period with the exception of 
those employees engaged on emergency maintenance and/or repair 
work or in cases where the reduction of hours of highly skilled work- 
ers and those whose hours of labor in out-of-door operations are 
affected by inclement weather, would unavoidably reduce or delay 
^'mployment of others or cause damage to equipment or products. 
These exceptions are limited to ten percent of the total number of 
employees of any one plant. Exemptions are made for executives 
and employees in a managerial, advisory, or technical capacity re- 
ceiving more than thirty-five dollars per week; and watchmen; pro- 
vided, that watchmen shall not w^ork more than six days nor more 
than fifty-six hours per week. 

Minimum rates of wages of from 40 to 32 cents per hour are estab- 
lished for the various industrial districts of the North w^ith a mini- 
mum of 25 cents in the South. Rates below 32 cents will be raised 
by the Industrial Relations Board if the Codes of other comparable 
basic natural resource industries later provide higher rates. 

No differentiation is made between female and male employees; 
no one under eighteen years shall work underground and no one 
under sixteen years shall be employed. 

The minimum weekly salary of $15.00 per week is established in 
cities of 500,000 population or over; $14.50 per week in cities of over 
250,000 and not exceeding 500,000, and $14.00 per week in cities of 
less than 250,000. 

economic effect of the code 

PreTious to the adoption of the President's Reemployment Agree- 
ment this Industry, which includes approximately 350 firms, em- 
2)loyed about 15,000 employees which was increased in August 1933 
to approximately 20,000. During the year 1932 the Industry was 
operating at only 15 percent of capacity, which has increased at this 
time to about 20 percent of capacity. Fully 50 percent of the prod- 
ucts of the Industry are sold to the iron and steel industry, and the 
prosperity of the Industry depends upon general manufacturing 
•conditions. The invested capital of the Industry is about $150,- 
000,000, and the value of its products averaged ^45,000,000 during 
the past five years. 

(256) 



I 



J 



257 

While the number of employees in the Industry has increased 80 
percent since March 1933 the pay-roll increase has been 150 percent. 
The schedule of hours represents a drop from an average maximum 
of 60 in 1932 to a maximum of 40 under the Code, which should pro- 
vide for a large increase in employment with any upturn of busi- 
ness. Labor costs comprise approximately 70 percent of the total 
cost of production. 

FINDINGS 

The Administrator finds that : 

(a) The Code as recommended complies in all respects with the 
pertinent provisions of Title I of the Act, including, without limi- 
tation, subsection (a) of Section 7 and subsection (b) of Section 10 
thereof; and that 

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

REFRACTORIES 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 Refractories Industry and shall be binding^ 
on every member thereof. 

Article II — Definitions 

1. The term " Refractories Industry " as used herein includes the 
mining and/or producing and/or manufacturing and/or processing 
of refractories and the selling by miners and/or producers and/or 
manufacturers and/or processors and/or sales agencies other than 
dealers of refractories as herein defined. The products of the 
Industry are as shown in Schedule I hereto attached. 

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 nature or 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 producer^ 
manufacturer, processor, or employer of labor in the Industry who 
shall be subject to this Code. 

5. The term " Member of the Code " includes any member of this 
Industry who shall signify assent to this Code. 

6. The term " Effective date " as used herein means the date this; 
Code shall become effective after it shall be approved by the Presi- 
dent of the United States. 

7. The terms " President ", "Act ", and "Administrator " as used 
herein shall mean respectively: the President of the United States,. 
Title I of the National Industrial Recovery Act, and the Admm- 
istrator for Industrial Recovery of the said Act. 

8. The term " Base Prices " as used herein means the prices for 
those standard products developed and established by custom in tha 
industry and/or the divisions thereof. 

Article III — Participation 

All members of the Refractories Industry may participate in this 
Code and any subsequent addition or revision of the code by accept- 

(258) 



259 

ing and paying their proportionate share of the cost and responsi- 
bility as well as the benefit of such participation by becoming a 
Member of the American Refractories Institute or by paying to the 
American Refractories Institute their proportionate share of the 
expenses of administering this Code on the same basis as paid by 
members of the Institute, with the exception of the expenses of the 
technical and research work conducted by the Institute at the Mellon 
Institute of Industrial Research at Pittsburgh. All other activities 
of the American Refractories Institute shall be in administering this 
Code of Fair Competition. At each meeting of the Members of 
the Code, or if a vote on any question shall be taken by mail, each 
Member thereof shall have as many votes as shall equal the quo- 
tient obtained by dividing by 100,000 the aggregate amount in dol- 
lars of the invoiced value of the products sold and delivered by 
such Member during the preceding calendar year. Fractions in 
such quotient shall be disregarded; provided, however, that each 
Member of the Code shall have at least one vote. All questions as 
to the number of votes wdiich each Member of the Code shall be 
entitled to cast shall be determined by the Emergency National 
Committee hereinafter defined. Any person or firm that is a Mem- 
ber of the Code may, and an association or corporation which is 
a Member of the Code shall, vote at meetings of the Members of 
the Code by proxy in writing duly executed by such Member and 
filed with the Secretary. Any such proxy may be for a specified 
meeting or may be a general proxy for any or all meetings that 
may be held until such proxy shall have been revoked by an instru- 
ment in writing duly executed by the Member of the Code which 
gave such proxy and filed with the Secretary. No initiation or 
entrance fees shall be charged, but the Emergenc}^ National Com- 
mittee (hereinafter described) sliall assess such subscription fees 
or dues as shall be necessary to defray the expenses of the Ameri- 
can Refractories Institute in administering the provisions of this 
Code and in assisting the National Recovery Administration in 
effectuating in the Refractories Industry the purposes and require- 
ments of the National Industrial Recovery Act. 

It shall be the duty of the Emergency National Committee as here- 
inafter described or any of its duly qualified agents to take such legal 
steps as they may deem necessary to collect from any Member of the 
Code any assessment or dues not paid for a period of thirty (30) 
days after the date on which such assessments or dues became payable. 

Article IV — Hours or Labor, Rates or Pat, and Other Conditions 

OF Employment 

A. GENER.\L 

1. Pursuant to subsection (a) of Section Y of the Act and so long 
as the Code shall be in effect, employers shall compl}^ with said sub- 
section (a) of Section 7, as follows: 

"(a) That employees shall have the right to organize and bargain 
collectively thru representatives of their own choosing, and shall be 
free from the interference, restraint, or coercion of employers of 



260 

labor, or their agents, in the designation of such representatives or 
in self -organization, or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection ; 

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

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

2. No person under sixteen (16) years of age shall be employed 
in the Industry ; providing, however, that where a state law provides 
a higher minimum age no person below the age specified by such 
state law shall be employed within the state. No person under 
eighteen (18) years of age shall be employed in any underground 
mining operations of the Industry. 

3. No employer shall reclassify employees or duties of occupa- 
tions performed or engage in any other subterfuge for the purpose 
of defeating the purposes or provisions of the Act or of this Code. 

4. Within each state this Code shall not supersede any laws of 
such state imj^osing 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. 

5. Every employer shall make reasonable provisions for the safety 
and health of his employees at the place and during tiie liours of 
their employment. 

6. Each employer shall post in conspicuous places, fully accessible, 
full copies of this Article IV of this Code except that employers 
may post only the wage rates applicable in tlie district where such 
posting is done. 

7. There shall be established by the Administrator an Industrial 
Relations Board for the Industry consisting of an equal number of 
representatives of employers and employees to deal with all matters 
in the Code relating to labor. Where a majority agi'eement cannot 
be reached, the Board shall select an impartial chairman to render a 
decision. The creating and functioning of these Boards, including 
the selection of these representatives of employees, shall be in accord- 
ance with Section 7 of the Act. If no truly representative labor 
organization exists, the employee members of such Board shall be 
chosen by the Labor Advisory Board of the N.R.A., and must be 
either an employee in the Industry or some one intimately familiar 
with the Industry. The employer representatives shall be chosen by 
the Emergency National Committee hereinafter defined. The Indus- 
trial Relations Board may establish such subsidiary agencies con- 
stituted in like manner as it finds necessary. 

B. HOURS OF LABOR 

Many of the basic processes in the Industry are of a continuous 
character and the mining of the raw materials, in many instances, 
is subject to interruption due to inclement weather. Consequently 



261 

the strict limitation of hours of labor for each week is impractical, 
but can be averaged over a thirty (30) clay period. 

Accordingly, no employer in the Industry shall cause or permit 
any employee to work at an average of more than forty (40) hours 
i^er week in any thirty (30) day period, nor more than eight (8) 
hours in any one (1) day. 

These maximum hours of labor shall not apply in the case of 
executives, salesmen, or those employed in supervisory capacities 
and in technical work and their respective staffs, providing such 
classes of employees earn not less than thirty-five ($35.00) dollars 
per week, nor in the case of watchmen, provided that watchmen 
shall not work more than fifty-six (56) hours in any one (1) week 
nor more than six (6) days in any seven (7) day period. 

These maximum hours of labor shall also not apply in the case 
•^f those emploj^ed in emergency maintenance or emergency repair 
w^T-k involving break-downs or protection of life or property. 

Kecognizing that the occasion for emergency maintenance or 
emergency repair work is limited to break-downs and protection of 
life or property and in order that it may be properly advised as to 
the extent of the use of this provision as to such classes of work, 
each Member of the Industry shall report monthly to the Emer- 
gency National Committee the number of hours worked by employees 
engaged in emergency maintenance and/or emergency repair work 
in excess of the hours stij^ulated above with the number of employees 
30 engaged and the reason for such work. 

The Emergenc}' Xational Committee shall at all times keep the 
Administrator and the Industrial Relations Board, as set up in Arti- 
cle IV, Section A, Paragraph 7, fully advised as to the extent of use 
of this provision, as to emergency maintenance and/or emergency 
repair work. 

\or shall these maximum hours of labor apply to the following: 

1. Employees whose labor requires their presence prior to or after 
the regular hours of operations. 

2. Employees whose labor is dependent upon climatic conditions. 

3. Emplo3^ees engaged in continuous processes. 

4. Employees engaged in work where limitation of hours of work 
per day may operate unfairly against the employee or may limit 
production and thereby deprive other employees of labor. 

Those employees enumerated in items one to four, inclusive, of 
this paragraph shall be limited to an average week of forty-eight 
(48) hours in any thirty (30) day period, and their number shall 
not exceed 10% of the total employees in any operating individual 
plant. 

No employer shall knowingly permit any employee to work for 
any time which, when totaled with that already performed with 
another employer or employers, exceed^ the maximum permitted 
herein. 

276490° 296—168 33 2 



262 



C. WAGES 



For the purpose of this Article IV the wage districts and mini- 
mum rates for common labor described below have been established: 

Rate per hour 

Cents 
District No. 1 : Maryland, New Jersey, New York, and New England 

States, and Pennsylvania with the exception of Pittsburgh and Salina_ 35 

District No. 2 : Pittsburgh and Salina, Pa. and Niles, Ohio 40 

District No. 3 : West Virginia, Ohio, and Kentucky, with expection of 
Niles, Cincinnati, and Portsmouth, Ohio, and Ashland and Louis- 
ville, Ky 32 

District No. 4: Cities of Cincinnati and Portsmouth, Ohio, and Ashland 

and Louisville, Ky 35 

District No. 5 : Alabama, Georgia, Tennessee, South Carolina, North 

Carolina, Florida, Louisiana, and Mississippi 25 

District No. 6 : East Chicago, Indiana, and Joliet, 111 37 

District No. 7 : Indiana and Illinois, except the cities of East Chicago, 

Indiana, and Joliet, 111 35 

District No. S: 

Missouri District, other than St. Louis and St. Louis County 32 

St. Louis and St. Louis County 35 

District No. 9: Texas and Arkansas 25 

District No. 10 : Colorado, Utah, Montana and Wyoming 35 

District No. 11 : California, Washington and Idaho 35 

Any other State or States not specifically covered 35 

Minimum wage rates in Districts Numbers 5 and 9 will be in- 
creased by the Industrial Relations Board for the indugtry as de- 
scribed in Article IV, Section A, Paragraph 7, if the Codes for 
other comparable basic natural resource industries later provide 
higher rates than those herein provided for Districts Numbers 5 
and 9, such increases to become effective upon approval by the 
President after such notice and hearing as he may require. 

It i,s agreed that these wage rates shall establish a guaranteed 
minimum rate of pay regardless of whether the employee is com- 
pensated on the basis of time rate or a piecework performance. 

Until changed by amendment of the Code the minimum rates of 
pay per hour which shall be paid by Members of the Code for 
common labor in the Industry in the respective wage districts 
described above shall be the rates set forth opposite each district 
shown above. 

None of the Member^ of the Code shall pay common laborers in 
its employ in the Industry in any such district any rate of pay 
less than the rate specified for such district in the schedule shown 
above. Such rates of pay shall not, however, be understood to be 
the maximum rates of pay for their respective districts. 

No person employed in clerical or office work shall be paid less 
than at the rate of fifteen ($15.00) dollars per week in any city of 
over 500,000 population, or in the immediate trade area of such city; 
nor less than fourteen dollars and fifty cents ($14.50) per week in 



263 

any city between 250,000 and 500,000 population, or in the immedi- 
ate trade area of such city; nor less than fourteen ($14.00) dollars 
per week in any city of less than 250,000 population. 

Wti<re rates for occui)ations other than those receiving a minimum 
wa^e herein described, shall at least maintain the difference in earn- 
in<;s for those occu])ations exihtino- as of June 1, 11)88. To the 
extent ])racticable, no employer shall reduce the compensation for 
employujent in excess of the minimum wages hereby agreed to, not- 
withstanding that the hours worked in such employment may be 
reduced. 

Factory wages shall be ])aid at least tAvice a month in lawful 
currency or by negotiable check. These wages shall be exempt from 
any deductions other than those voluntarily agreed to by the em- 
ployee or authorized by law. No employee shall be required, as a 
condition of emplo3'ment, to trade at a store specified by the 
employer. 

Article V — Divisions of the Industry 

Section A. Powers. — For the purposes of administration of this 
Code, the Refractories In(histry shall be divided into Divisions as 
set forth below and as shown on the accompanying organization 
chart, as shown in Exhibit A and made a part of this Code. Each 
Division shall designate or establish its own administrative agency 
or agencies. Each such Division shall be independent and self- 
governing in respect to all conditions and problems relating exclu- 
sively to the said Division with the exception of such powers as are 
hereinafter delegated to the Emergency National Committee of the 
Refractories Industry (hereinafter described). 

Proposals in respect to matters affecting more than one Division, 
other than amendments to this Code, may be initiated by any Division 
and shall be submitted for consideration to the said Emergencv 
National Committee and. its determination shall be binding upon 
said Division and all other Divisions affected thereby. 

The method of selection of any divisional administrative agency 
or agencies may be subject to review and disapproval or modification 
by the Administrator. The Administrator may appoint one mem- 
ber to any Divisional Administrative Agency who shall not have 
voting power, who shall represent the government on such Agency. 
Section B. Names of Divisions. — Divisions are hereby established 
as follows : 

Fire Clay Refractories 

Silica Refractories 

Basic Refractories 

High Temperature Bonding Mortars 

Plastic Refractories 

Special Refractories 

Locomotive Arch Refractories 

Sus]jended Walls and Arches 

Glass House Refractories 

Ladle and Hot Top Refractories 

Sleeve, Nozzle, and Runner Brick and Tuyeres 

Fire Clay Producers 
Other divisions of refractories and of manufacturers or producers 
of Refractories Products may be established upon application of any 



264 

such group to the Emergency National Committee and subject to 
the approval of the Emergency National Committee (hereinafter 
described), such Divisions to have representation on the Emergency 
National Committee of the Refractories Industry. 

Section C. Executive Committee. — In order to cooperate with the 
Administrator to effectuate the policies of the National Industrial 
Recovery Act, each of the above Divisions and any others which may 
subsequently be formed within the Refractories Industry shall set 
up an Executive Committee for the purpose of administering the 
provisions of the Code, to secure adherence thereto, to hear and 
adjust complaints, to consider proposals for amendments and excep- 
tions thereto and otherwise to carry out within the Division the 
purposes of the National Industrial Recovery Act as set forth in 
this Code. Any action taken under this paragraph may be reviewed 
and disapproved by the Administrator, 

The Emergency National Committee (hereinafter described), in 
order to secure adherence to the policies of the National Industrial 
Recovery Act in cooperation with the Administrator, shall require 
each Division to adopt fair trade practice rules relating to the prac- 
tices peculiar to that Division. If a Division as named above does 
not adopt such fair trade practice rules or if at any time thereafter 
a Division fails to perform its obligations as provided hereunder, 
the Emergency National Committee of the Refractories Industry 
hereinafter described, subject to the approval of the Administrator, 
is hereby empowered to adopt rules of fair Trade Practice for the 
Division and may provide for the administration of the Code as if 
said Emeregency National Committee were the Executive of the 
Division concerned. Such fair trade practice rules upon approval 
by the President after such notice and hearing as he may require 
shall become a part of this Code and fully effective as such. 

Article VI — Emergency National Coaemittee 

Section A. Representation. — There shall be an Emergency Na- 
tional Committee of the Refractories Industry of twenty-five or more 
members, to consist of a representative of each Division, selected 
by the said Division, by some fair method, which may be reviewed 
by the Administrator; a representative of the Industry at large, 
who will be the President of the American Refractories Institute: 
and a special representative to be selected by the Industry at large 
for each of the following subjects : Labor, Code of Ethics, Statistical 
and Cost Accounting Data, two (2) Executive Vice-Presidents and 
seven (7) representatives at large. The above Committee will, there- 
fore, consist of the following representatives: 

Fire Clay Refractories. 

Silica Refractories. 

Basic Refractories. 

High Temperature Bonding Mortara. 

Plastic Refractories. 

Special Refractories. 

Locomotive Arch Refractories. 

Suspended Walls and Arches. 

Glass House Refractories. 



2C5 

Ladle and Hot Top Refractories. 

Sleeve, Nozzle, and Runner Brick and Tuyeres. 

Fire Clay Producers. 

Labor. 

Code of Ethics. 

Statistical and Cost Accountings Data. 

President of the American Refractories Institute and 

Two (2) Vice-Presidents, 

Seven (7) representatives at large. 
At any meeting of the Emergency National Committee, and Mem- 
ber unable to attend such meeting may send a duly accredited alter- 
nate to represent him. The alternate must file notice of such 
authority with the Secretary of the meeting before taking part in its 
deliberations. Each member of the Emergency National Committee 
shall have one vote. 

The Administrator may at his own option appoint not more than 
three additional members of the Emergency National Committee wdio 
shall not have voting power, who shall represent the Government on 
the Emergency National Committee. 

Such member or members of the Industry shall be appointed for 
six months and if more than one is appointed, their terms are to be 
so arranged that they do not expire at the same time. 

Each trade or industrial association directly or indirectly partici- 
pating in the selection or activities of the Emergency National Com- 
mittee and Executive Committee shall: (1) Impose no inequitable 
restrictions on membership, and (2) submit to the Administrator 
true copies of its articles of association, bylaws, regulations, and any 
amendments when made thereto, together wath such other informa- 
tion as to membership, organization, and activities as the Adminis- 
trator may deem necessary to effectuate the purpose of the Act. 

In order that the Emergency National Committee and Executive 
Committees shall at all times be truly representative of the industry 
and in other respects comply with the provisions of the Act, the 
Administrator may provide such hearings as he may deem proper; 
and thereafter if he shall find that the Emergency National Com- 
mittee and the Executive Committees are not truly representative or 
do not in other respects comply with the provisions of the Act, he 
may require an appropriate modification in the method of selection 
of such committees'. 

Section B. Powers. — The Emergency National Committee shall 
be the general planning and coordinating agency for the Industry 
in cooperation with the Administrator. Its Members, selected by 
established Divisions, shall be empowered by the said Divisions to 
act for them conclusively in respect to all matters before the Com- 
mittee for consideration and within its jurisdiction. The Committee 
shall have powers and duties as provided herein; and in addition 
thereto, it shall, subject to review and disapproval by the Admin- 
istrator : 

(1) from time to time require such reports and information as to 
labor, statistical or cost-accounting data, or any general information 
from divisions and/or all members thereof as in its judgment may be 
ncce.-sary to advise it adequately of the administration and enforce- 
UKMit of the provisions of this Code; this information to be collected 



266 

by such confidential agency as the Emergency National Committee 
may select, and distributed only in summary except that it shall be 
available in full to the Emergency National Committee and the 
Administrator. 

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

(3) make rules and regulations necessary for the administration 
and enforcement of this Code. The Committee may delegate any 
of its authority to the National Control Committee hereinafter 
provided, and may designate such agents as it may require to carry 
out its functions. 

(4) Wilful failure of any Member of this Code to comply within 
thirty (30) days with any request of the Emergency National Com- 
mittee or any of its duly qualified agents for any pertinent informa- 
tion as to labor, statistical or cost accounting data, or any general 
information necessary for the proper administration of this Code 
under the National Industrial Recovery Act shall be considered a 
violation of this Code. 

In addition to information required to be submitted to the Emer- 
gency National Committee, there shall be furnished to government 
agencies such statistical information as the Administrator may deem 
necessary for the purpose recited in Section 3 (a) of the Act. 

Section C. Concerning Prices. — (1) Each Member of the indus- 
try, shall within ten days after the effective date of the Code, unless 
this ten-day period is extended by the Emergency National Com- 
mittee, which is hereby authorized to make such extension of this 
period as it may deem necessary, file with the American Refractories 
Institute a list showing the minimum base prices for all of its prod- 
ucts, and from and after the expiration of such ten days or extension 
thereof such Member shall at all times maintain on file with the 
American Refractories Institute a list showing the minimum base 
prices for all its products and shall not make any change in such 
minimum base prices except as provided in this Section. 

Each such list shall become effective ten days after the date of 
filing such list with the American Refractories Institute, provided, 
however that the first list of minimum base prices filed by any Mem- 
ber of the Industry, as above provided, shall take effect on the date 
of filing thereof. None of the minimum base 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 American 
Refractories Institute, of a new list of its minimum base prices, 
which shall not become effective until ten days after the date on 
which such new price lists shall have been so filed, and not later than 
10 days. 

The Emergency National Committee shall present to the Adminis- 
trator for his approval after such notice and hearing as he may 
require — 

(a) A system of cost finding capable of application by all mem- 
bers of the industry. 

(b) A definition of the term "representative member" of the 
industry based on investigations by the Emergency National Com- 
mittee as to the costs, determined by such system, of the members 



267 

of the Industry. In no event shall the term " representative mem- 
ber " be construed in such a manner as to exclude from such classifi- 
cation more than ten percent of the total manufacturers of any 
jsarticular product in any competitive district. 

After the determination of individual costs in this manner, the 
Emergency National Committeee shall advise the members of the 
industry in each competitive district, and as related to each product 
in the industry, the cost of the lowest cost representative member in 
each such district and as related to each product in the Industry and 
no members of the Industry shall sell his products at a price which 
will result in the purchaser paying therefor less than the cost of 
the lowest cost representative member as determined aforesaid. 

The Emergency National Committee shall have power on its own 
initiative, or on the complaint of any Member of the Industry, to 
investigate any minimum base price for any product shown in any 
list filed with the American Refractories Institute by any member 
of the Industry, 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 Emergency National Com- 
mittee shall deem necessary or proper for such purpose. 

If the Emergency National Committee, after such investigation, 
shall determine that such base price for such product is below the 
cost of the lowest cost representative member manufacturing such 
product in the competitive district of the manufacturer under such 
investigation, and that the maintenance of such base price may 
result in unfair competition in the Industry, the Emergency Na- 
tional Committee shall notify the member under such investiga- 
tion. If such member, within ten days after such notice, shall 
not file a new list showing a price at least equal to such lowest 
representative member's cost (which price shall become effective im- 
mediately upon filing) the Emergency National Committee shall 
report the results of its investigation to the proper authority or 
authorities for action. 

A notice of all decisions of the Emergency National Committee 
under this Section, together with the reasons therefor, shall be filed 
with the Administrator. Any member of the Industry affected by 
action of the Committee under this paragraph may appeal to the 
Administrator, who, after such notice and hearing as may be 
required, may review and disapprove the action of the Emergency 
National Committee hereunder. 

(2) The Emergency National Committee shall issue to the Mem- 
bers of this Industry from time to time a schedule of classification 
of Extras to be added to the base prices listed in accordance with 
the provisions of Section (1). The use of such classification shall 
be mandatory under the Members of the Industry. 

(3) The Emergency National Committee may make such excep- 
tions to the provisions under subheadings (1) and (2) of Section C, 
Article VI, to the extent deemed necessary by them to prevent unfair 
operation of the foregoing provisions in exceptional cases. No per- 
son subject to the jurisdiction of this Code shall sell, or offer for sale 
Refractories ancl/or Refractories Products at prices less than those 
so filed. Any violation of this provision shall be deemed an unfair 
practice and a violation of this Code. 



268 

(4) Contracts entered into prior to the passage of the National , 
Industrial Recovery Act are not affected by the provisions of this 
Section C of Article VI. 

Article VII 

TERMS, DISCOUNTS, AND CREDITS 

Terms of sale shall be determined by each division of the industry 
for its respective division and included in its divisional code. 

In soliciting business, no manufacturer shall agree to accept as 
payment securities such as mortgages, bonds, stocks, tax bills, certifi- 
cates, or any other security except at current marketable cash value» 

REBATES 

The secret payment or allowances of rebates, refunds, commissions, 
or unearned discount, whether in the form of money or otherwise, or 
secretly extending to certain purchasers special prices, services, or 
privileges not extended to all purchasers under like terms and 
conditions is an unfair trade practice. 

Except in the Special Refractories Division, providing any kind of 
free service, such as free truck delivery to depot or from depot to 
customer's plant, shipping from warehouse at carload prices, crating 
or packing without adequate charge, furnishing unusual engineering 
services gratis is an unfair trade practice. 

Shipping material in excess of that for which proper charge is 
made or giving away material as samples (or otherwise) in such 
quantity or manner, or making special allowances under the guise of 
advertising expense as to have the effect of rebating, is an unfair 
trade practice. 

Unwarranted allowances for rejection or shortage claims by con- 
nivance or otherwise, between seller and purchaser is an unfair trade 
practice. No allowance shall be made for the return of used sacks or 
other containers used for the shipment of refractories. 

Directly or indirectly to give or permit to be given, or to offer to 
give money or anything of value to agents, employees, or representa- 
tives of customers or prospective customers, or to agents, employees, 
or representatives of competitor's customers or prospective customers, 
without the knowledge of their employers or principals, as an induce- 
ment to influence their employers or principals to purchase or con- 
tract to purchase from the makers of such gift or offer, or to influence 
such employers or principals to refrain from dealing or contracting 
to deal with competitors is an unfair trade practice. The above 
provisions shall not be construed to prohibit free and general dis- 
tribution of articles commonly used for advertising except so far as 
such articles are actually used for connnercial bribery as hereinabove 
defined. 

Substitution of quality in any any manner or specifically invoicing 
lower quality or cull material and shipping higher grade with the 
intent of influencing the placing of business is an unfair trade 
practice. 



269 

MISBRANDING 

Except in the divisions of Special Refractories, High Tempera- 
ture Bondinir Mortars^ Phistic Refractories, and Fire Clay Pro- 
ducers, quality of brands and materials shall be clearly defined 
and ex])resso(l by the seller. No recognized grade shall be mis- 
branded (jr misrepresented to include it in any lower j^rice chissifi- 
cation when in so doing the seller creates discrimination. Where 
a manufacturer is producing a refractory for resale by a dealer 
under the dealer's trade names, the brands so sold must be identified 
by the manufacturer in the correct quality class. 

P^xcept in the Special Refractories Division, making any sale 
of any jtroduct under any description which does not fully describe 
such product in terms customarily used in tlie Industry shall be an 
unfair trade practice. Each manufacturer shall file with the Amer- 
ican Refractories Institute a list of his brands classified as to 
quality. Upon complaint of any member as to misrepresentation 
of quality of any brand so as to classify any brand at lower quality 
than it should properly be, the Emergency National Connnittee 
may investiiiate such brand through the Mellon Institute, and if the 
brand in question is found to l)e misrepresented as to quality, the 
Emergency National Committee may require the manufacturer to 
properly classify such brand. The classification of the American 
Society of Testing ^lateriais shall be used. 

BRANDS AND TRADE MARKS 

The imitation of the exclusive trade marks, trade names, slogans, 
or other individual marks of identification of competitors, having 
the tendency to mislead or deceive purchasers or prospective pur- 
chasers, is an unfair trade practice. 

SERVICE GUARANTEES 

(a) Except in the divisions of Special Refractories and Basic 
Refractories, inasmuch as the manufacturer of refractories has no 
control over the use of his product, guarantees as to the length 
of service of materials shall constitute an unfair trade practice. 
Nothing in this section shall a]:)Dly to the introduction of a new 
product during a period of one year from its introduction. 

TYPE AND VAIJDITY OF CONTRACT 

(a) The Emergency National Committee shall develop and the 
industry shall adopt, in cooperation with buyers, a form of contract 
which will avoid ambiguity, prevent misunderstanding, and pro- 
tect the rights of both buyer and seller, such form of contract to 
be subject to the approval of the Administrator, 

(b) Contracts are business obligations which should be performed 
in both letter and spirit. It shall be an unfair trade practice for 
sellers to permit the repudiation of contracts by buyers without 
just cause. 

(c) Contracts shall cover the bona fide shipment of material over 
a given fixed period. It shall be an unfair trade practice for seller 



270 

to knowintjly enter into a contract which represents such sharp prac- 
tice on the part of the buyer as either overestiniation of require- 
ments in a single contract or pyramiding or dupHcation of contracts 
or any other means of misrepresentation. 

(d) Maliciously inducing or attempting to induce a buyer to vio- 
late a contract with a competitor shall be an unfair trade practice. 

None of the members of the Code shall make any contract of sale 
of any product by the terms of which the shipment of such product 
is not required to be completed before the end of the calendar quarter- 
year, ending March 31, June 30, September 30, and December 31, 
ending not more than four months after the date of the making of 
such contract. 

This paragraph shall not apply in the case of Special Refractories, 
Glass House Refractories, Fire Clay Producers, and Locomotive 
Arch Divisions. 

The post- or pre-dating of any proposal, order, contract, invoice, or 
instrument which has a bearing upon the terms and conditions of 
purchase shall be deemed an unfair trade practice. 

PROPOSALS 

Recognizing that many irregular trade practices are the result 
of oversight as often as intent, a standard proposal or quotation 
form to include the following is recommended : 

Date of shipment. 

Terms. 

F.O.B. point. 

Schedule of overages as per classification. 

Method of handling damage claims. 

Limit of time of acceptance of proposal to ten days. 

Seller not responsible for failure or delay in delivery due to 
causes beyond his control, acts of God, etc. 

Any special clause regarding taxes or legislation. 

COMMISSIONS 

Except in the Special Refractories and Suspended Arches and 
Walls Divisions no commission or discount, direct or indirect, shall 
be paid to an engineer, contractor, boiler setter, furnace builder, or 
any one directly or indirectly connected with any consumer or any 
consumer's organization. 

Except in the Suspended Arches and Walls Division, no com- 
missions should be paid to an Agent (or Dealer) who is controlled 
in whole or in part by any consumer organization, nor to any 
fictitious Agent (or Dealer) created for the purpose of passing to 
the consumer, or to the consumer's friends, all or any part of a 
commission. 

Except in the Suspended Arches and Walls Division, commis- 
sions or discounts shall be paid only to regular bona fide Agents 
(or Dealers) hereinafter defined on purchases and/or shipments in 
such Dealer's territory. 



271 



DEALERS 



Except in the Fire Clay Producers Division, a Dealer in the In- 
dustry is one 'vvho has an established place of business where he is 
regularly engaged in selling refractories, and who may or may not 
sell other materials to the public, with adequate refractories stocks 
and facilities to serve the retail trade in a given territory and able 
and willing to perform all functions devolving upon him in securing, 
executing, and delivering orders for such refractories. 

A Dealer may also be an agent of the same manufacturer. 

(a) Discounts to dealers shall be determined by Divisional Codes. 

(b) Except in the Fire Clay Producers Division, no shipments 
shall be made to dealers on consignment, nor shall terms be made 
which will in effect constitute or approximate shipment on con- 
signment. 

(c) Terms of payment to Dealers shall be the same as to consumers. 

AGEXTS 

Except in the Fire Clay Producers Division, an Agent in the 
Industry is one who is engaged in selling refractories products (and 
who may or may not sell other material) to Dealers and/or Con- 
sumers in a certain prescribed territory. 

An Agent may also be a Dealer of the same manufacturer. 

(a) An Agent mav operate on a salary or commission basis, or 
both. 

(b) Nothing in the above shall be considered as preventing a 
manufacturer from establishing his own warehouse stocks for retail 
distribution by his own employees, such employees to be paid either 
by direct salary or commission. No such warehouse shall be 
established on a consumer's property. 

(c) Except in the High Temperature Bonding Mortar and Plas- 
tic Refractories Divisions, terms to Agents shall be the same as to 
Consumers. 

GENERAL, PRACTICES 

Except in the Special Refractories Division, gauging or grinding 
of products to closer than standard tolerances without adequate 
charge or accepting business under specifications calling for closer 
than the allowable Industry standard tolerances without adequate 
additional charges is an unfair trade practice. 

Furnishing special containers or special individual formulas with- 
out adequate charge is an unfair trade practice. 

Misrepresentation of raw materials or of the source of raw ma- 
terials is an unfair trade practice. 

Except in Glass House Refractories, Locomotive Arch Refrac- 
tories, and Fire Clay Producers Divisions, consignment shipments 
shall not be made. 

The purchase of materials not for the purchaser's own use to in- 
fluence a jDurchase or an allowance for used materials to influence 
a purchase is an unfair trade practice. 

Except in the case of the Special Refractories Division, any re- 
quest by a purchaser for specifications of standard refractory prod- 



272 

ucts other than standard American Society for Testing Materials 
requirements shall be referred to the Mellon Institute for advice 
before writing such specifications. The existence of illogical or 
unfair specifications should be reported to the Refractories' Fellow- 
ship at the Mellon Institute so that proper steps may be taken to 
have them modified. 

Procuring or divulging otherwise than with the consent of any 
member of the Code, 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, is an unfair trade 
practice. 

SPECIAL ALLOWANCES 

Except in the Special Refractories Division, on orders for special 
shapes manufactured but not shipped and which customer desires to 
cancel, and which cannot be sold to another customer, invoice shall 
be rendered customer at full invoice price, less value of bats at a 
price no higher than 50% of the current price of dobies. 

ORDERS FOR SPECIALS 

On orders for specials which are manufactured in accordance 
with customer's instructions — but order held up after material is 
in process of manufacture — customer shall be invoiced for 100% of 
full invoice price of material manufactured if order is not shipped 
within 90 days after date of order, material to be held by manufac- 
turer for customer's account. 

DEFAMATION OF COMPETITOR OR DISPARAGEMENT OF HIS GOODS 

The defamation of a competitor in any manner, either by imput- 
ing to him dishonorable conduct, inability to perform contracts, or 
questionable credit standing or false disparagement of the grade 
or quality of his goods is an unfair trade practice. 

Deliberately misleading promise of delivery that cannot reason- 
ably be fulfilled is an unfair trade practice. 

ENTICEMENT OF EMPLOYEES 

Enticement of emploj^ees of competitors with the purpose and 
effect of interfering with their business is an unfair trade prac- 
tice. We recommend that manufacturers deal frankly and openly 
in instances where employees seek to change from the service of one 
employer to another or where the employer wishes to negotiate for 
the services of another manufacturer's employee. 

EXCEPTIONS 

The Emergency National Committee may make whatever excep- 
tions it deems necessary to the provisions of this Article VII to 
prevent its unfair application in special cases. In the event any 
member of the Code petitions the Emergency National Connnittee 



273 

for exceptions under any of the provisions of this Article VII the 
Eniertiency National C^)mniittce, or any of its duly qualified agents, 
may suspend such provisions as pertain to such nieniber until the 
Emergency National Committee acts on such ])etition and notifies 
the member of its decision. The decision of the Emergency National 
Committee on any such decision shall be subject to review, modifica- 
tion, or disaj)p!()val by the Administrator. 

Article VIII — Natioxal Control Co:mmittee 

The Emergency National Committee of the Refractories Industry 
shall elect from its own membership a National Control Connnittee 
of not less than three, but not to exce3d six members, in addition to 
the President of the American Kefractories Institute. The National 
Control Committee shall exercise such authority as may have been 
delegated to it by the said Emergency National Committee. 

All communications and conferences of the Refractories Industry 
^ Ml the President or with his agents concerning the approval or 
amendment of this Code or any of its provisions, or any matters 
relating thereto, shall be through the said National Control Com- 
mittee. The National Control Committee shall serve as an executive 
agency for the Emergency National Committee of the Refractories 
Industry, and shall be charged with the enforcement of the pro- 
visions of this Code and wdth the duties, through agents or otherwise, 
of heo.ring and adjusting complaints, considering proposals for 
amendments and making recommendations thereon, approving rec- 
ommendations for exceptions to the provisions of this Code, and 
otherwise administering its provisions. Any such action may be 
reviewed and disapproved by the Administrator. Any Division or 
an}^ adherent to the provisions of this Code, or subject to its terms, 
shall have the right of appeal to the Emergency National Commit- 
tee from decisions of the National Control Committee, and the 
decision of the said Emergency National Committee on said appeal 
shall be final except that such decision ma}- be subject to review and 
disapproval by the Administrator. 

The Administrator may appoint one member to the National Con- 
trol Committee, without voting power, who shall represent the gov- 
ernment on the committee. 

Article IX — Capacity 

Whereas, it is the concensus of opinion in the Industry that until 
such time as a demand for its product cannot adequately be met by 
the fullest possible use of existing capacities for proikicing fire clay 
or silica brick and special shapes, such capacities sliall not be in- 
creased and no new capacities shall be added. 

Capacity in this Industry shall be defined as those kilns and 
furnaces existing as of the effective date of this Code and as custom- 
arily used for burning refractories, whether periodic or tunnel kilns 
and/or furnaces, and owned by persons, partnerships, or corpora- 
tions who, as of the effective date of this Code, were definitely estab- 
lished as manufacturers of refractories or as refractories, pi'oducers. 

Accoi-dingly no member of the Industry ancl/or no person engaged 
in the Industry shall initiate the construction of any new units or 



274 

increase his capacity of fire clay and silica brick or special shape 
production unless and until he shall have secured from the Emer- 
gency National Committee consent to such increase, as being con- 
sistent with effectuating the policy of the Act during the period of 
the emergency. The Emergency National Committee shall promptly 
notify the Administrator of any application for any such consent 
and the Administrator may review, disapprove, or modify the action 
of the Emergency National Committee upon such application and/or 
at any time may suspend the operation of this Article IX to effectuate 
the purposes or policy of the Act. 

Nothing in the above shall be interpreted to prevent any Member 
of the Code from replacing present capacity or existing machinery 
for the production of fire clay or silica brick and special shapes with 
new and modern capacity or equipment so long as the total existing 
capacities, as defined above in this article, of that Member are not 
increased. The purchase by any one of existing capacity as defined 
above shall not be interpreted as adding to existing capacity. 

Article X — Monopolies 

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

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

Article XI — General 

(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 l)y him upon his approval thereof. 

(2) The Emergency National Committee of the Refractories 
Industry and the National Control Committee shall from time to 
time make to each Division established, or to be established, under 
the provisions of this Code, such recommendations, including recom- 
mendations respecting amendments to the Code as may be necessary 
to effectuate within the Refractories Industry or within any Division 
thereof the purpose of the National Industrial Recovery Act as 
administered. 

(3) Any action of the Emergency National Committee under any 
or all provisions of the Code may be reviewed and disapproved by 
the Administrator. 

(4) Amendment of this code may be proposed by any group truly 
representative of the industry or any division thereof, or by any 
established division to the Emergency National Committee, or may 
be initiated by the said Committee and after approval by the Com- 
mittee and when approved by the President after such notice and 
hearing as he may prescribe shall be effective. Nothing in this Sec- 
tion 4 shall be construed to prevent any member of the industry from 



275 

petitionino; the President to use his poAvers as outlined in Section 1 
of this Article. 

(5) Whereas the policy of the Act to increase real purchasing 
power will be made impossible of consummation if prices of com- 
modities and services increase as rai)idly as wages, it is recognized 
that price increases should be dehiyed and that when made, the same 
should, so far as is reasonably possible, be limited to actual increases 
in the seller's costs. 

(6) No provisions of Articles VI and VII shall have any appli- 
cation to sales or shipments of products of the Industry exported to 
countries or places other than the United States and its territories 
and/or jxjssessions. 

(7) This Code shall be in effect beginning ten days after its 
approval by the President. 

Approved Code No. 168. 
Rtgistry No. 1034-1-01. 



Schedule I— Divisions of the Industbt and Products 

Special RefractoHes.-Fused Alumina, S^"}^^"/^; ^^JifA Jrfe^' ^''^'' ^^'^ 
Brick Silicon Carbide, Insulating Refractories, Cast Refractories. 
Basic Refractories.— Chrome, Magnetite. 
Silica Refractories.— Silica Brick. 

^:,^^^:^al^!^^^ Suspendea Refractory Walls and 

^SS^^^SS^Sf^^ScS^^SSS^o^^^^ ^^^^^ 

mgTTZpZature Mortars.-Wet or Dry High Temperature Mortars of all 

^"^Ipves, Nozzles, Runner Brick, and Tuyere Refractories. -Fire Clay Refrac- 
''ifJeiiTnofTop Refractories.-mre ClayHefractories for these pu^^^^^^^^^ 

Glass House Refractories.— Upecialtj products of fire clay for glass industry. 

Fire Clay Producer's.— UsiW and Prepared Refractory Oiays. 

(276) 

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Approved Code No. 169 
CODE OF FAIR COMPETITION 

FOR 

SAVINGS, BUILDING AND LOAN ASSOCIATIONS 

As Approved on December 21, 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 Savings, Building and Loan Associations, and 
hearings having been held thereon and the Administrator having 
rendered his report containing an analysis of the said code of fair 
competition together with his recommendations and findings with 
respect thereto, and the Administrator having found that the said 
code of fair competition complies in all respects with the pertinent 
provisions of title I of said act and that the requirements of clauses 
(1) and (2) of subsection (a) of section 3 of the said act have been 
met: 

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

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

Decemler 21, 1933. 

85374"" 313-120 34 (279) 



December 9, 1933. 
The President, 

The White House. 

Sir : I have the honor to transmit herewith the Code of Fair Com- 
petition for Savings, Building and Loan Associations. The Hearing 
was held in accordance with the requirements of the National Kecov- 
ery Administration in the United States Chamber of Commerce 
Building on December 4, 1933. 

This Code was sponsored by the United States Building and Loan 
League founded in 1892 for the purpose of preserving the integrity 
of local cooperative institutions. The League's membership now 
comprises 5,831 out of 10,997 associations, large and small, and every 
State League in the Union is a member thereof. 

The assets of member associations approximate six billion dollars 
or 76% of the total assets of all associations amounting to seven bil- 
lion seven hundred fifty million dollars. Present-day business of 
Building and Loan is the outgrowth of a little institution organized 
over a century ago in Frankford, Pennsylvania, and is the develop- 
ment of more than a century of experience in the specialized field of 
thrift and home financing. The net profits of associations are divided 
among all the members, who are both the borrowers and the investors. 

It is worthy of note that of the nineteen hundred institutions that 
have affiliated with the Federal Home Loan Bank System seventeen 
hundred of them are members of the parent League. The most recent 
form of these associations has been provided for by the Congress 
of the United States, authorizing for the first time the formation of 
these thrift and home-financing institutions under Federal charter. 

The active and constructive policies of these associations furnish 
most pleasant reading at the present time. Although total assets 
have shrunk from nine billion dollars in 1929 to seven billion seven 
hundred fifty million dollars at this time, a decrease of 12%, 
the loss ratio has been less than one fourth of one percent of the 
assets in any one year of the depression. Furthermore, these insti- 
tutions are aiding and abetting the Recovery Program not only 
through mortgages but by materially assisting in the financing of 
upkeep and repairs of homes. In 1932 when credit was almost non- 
existent associations made loans of five hundred thirty-two millions 
of dollars. 

A companion achievement is their record in regard to employment 
and wages. A recent survey of associations with assets of five mil- 
lion dollars and over located in twenty-six states evidences an increase 
in the number of employees of 11% over 1929. Of these only a 
trifle over one per cent fall within the minimum wage groups. In 
this instance the top of the pyramid has borne the brunt of retrench- 
ment both in numbers and in reduction of compensation. At the 
same time the number of employees receiving $150.00 per month and 

(280) 



281 

less have increased by 37% and their wage payments have increased 
by 24%. 

I can add only that this recital should make history for the 
10,000,000 savers of the Building and Loan Associations. 

Under fair practices there is but one important provision and that 
important one governs the heart of the business. It prohibits adver- 
tising or other representation, in any form, which is inaccurate or 
which misrepresents the services, contracts, investments, or financial 
condition of any association. 

No objector from an association or from the public appeared at 
the Hearing, nor has any objection been subsequently filed. 

This Code has been accepted by the United States Building and 
Loan League and has received the approval of the several Advisory 
Boards of the National Kecovery Administration, with the exception 
of a qualification by Labor which is included in this report. 

I find that the Code complies with the pertinent provisions of 
clauses (1) and (2), subsection (a) of Section 3, subsection (a) of 
Section 7, and subsection (b) of Section 10 of the National Industrial 
Recovery Act. 

I recommend, therefore, that you approve the Code of Fair Com- 
petition for Savings, Building and Loan Associations as herewith 
submitted. 

Respectfully, 

Hugh S. Johnson, 

A dministrator. 



CODE OF FAIR COMPETITION 

FOR 

SAVINGS, BUILDING AND LOAN ASSOCIATIONS 

Preamble 

It is the declared purpose of the proponents of this Code to pro- 
mote thrift and the buying and owning of homes; to operate associa- 
tions for the equitable benefit and security of shareholders and in- 
vestors therein and borrowers therefrom; to promote research and 
education ; to reduce and relieve unemployment ; to bring about unity 
and cooperative action among all persons engaged in the manage- 
ment of thrift and home-financing associations. 

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 Savings, Building and Loan Associations and 
shall be the standard of fair competition and shall be binding on 
all associations as hereinafter defined. 

Article II — Definitions 

1. The term " associations " as used herein shall include building 
and loan associations, savings and loan associations, homestead asso- 
ciations, cooperative banks, and similar cooperative thrift and home- 
financing associations. 

2. The term " League " as used herein means the United States 
Building and Loan League, a trade association having its oflSces at 
104 South Michigan Avenue, Chicago, Illinois. 

3. The term " member " as used herein shall refer to such organ- 
izations and associations as are members of the league, as determined 
by its Constitution. 

4. The term " nonmember " as used herein shall mean similar asso- 
ciations, unaffiliated with the League, subject to this Code and any 
revisions or additions thereto and receiving the benefits thereof. 

5. The term " employee " as used herein means any person 
employed by such associations. 

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

7. The term " expiration date " as used herein means June 16, 1935, 
or the earliest date prior thereto on which the President shall by 

(282) 



283 

proclamation or the Congress shall by Joint Resolution declare that 
the emergency recognized by Section I of the National Industrial Re- 
covery Act has ended. 

8. The terms " President ", "Act ", and "Administrator " as used 
herein shall mean respectively the President of the United States, the 
National Industrial Recovery Act, and the Administrator appointed 
under Title I of said Act. 

9. Population for the purposes of this Code shall be determined by 
reference to the latest Federal Census. 

Article III — Minimum Wages 

1. On and after the effective date, and to and until the expiration 
date, the minimum wages of employees covered hereby shall be: (a) 
$15 per week in any city of over 500,000 population or in the imme- 
diate trade area or such city; (b) $14.50 per week in any city of 
between 250,000 and 500,000; (c) $14 per week in any city of be- 
tween 2,500 and 250,000; (d) $12 per week in any town under 2,500 
population. 

2. Part-time workers shall be paid minimum wages of 10% or 
more in excess of the above minimum standards, calculated on an 
hourly basis. 

3. Officers, directors^ or other members of the management ren- 
dering part-time service of any kind to the associations without 
compensation shall not be affected by the provisions of this Article. 

4. The wages of employees shall not be decreased, even though 
the hours of such employees' work shall be reduced to conform to 
the maximum hours provided in Article IV. 

Article IV — Hours of Labor 

On and after the effective date, no employee shall work for more 
than an average of forty hours per week, such average being deter- 
mined by periods of thirteen weeks, but such limitation shall not 
apply to": 

(a) Any employee in a managerial, executive, or administrative 
capacity or in any other capacity of special or sole responsibility 
who receives more than $35,00 per week. 

(b) Any employee engaged as an outside representative, or night 
watchmen. 

(c) Cases of emergency beyond the control of associations or 
periods when peak demands or Federal or State examinations pla^e 
an unusual and temporary requirement upon any associations. 

Article V — Labor Provisions 

1. No persons under 16 years of age shall be employed, except that 
persons between 14 and 16 may be employed for not to exceed 3 hourg 
a day and those hours between 7 a.m. and 7 p.m. in such work as will 
not interfere with hours of day school. 

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



284 

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

(b) That no employee and no one seeking employment shall be 
required as a condition of emploj^ment to join any company union 
or to refrain from joining, organizing, or assisting a labor organi- 
zation of his own choosing. 

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

3. No provision in this Code shall supersede any law within any 
State which imposes more stringent requirements on employers as 
to age of employees, wages, hours of work, or as to safety, health, or 
sanitary conditions, or insurance, or fire protection, general working 
conditions, than are imposed by this Code. 

Article VI — Administration 

1. A Code Authority shall be established for the administration of 
this Code. This Code Authority shall include the President and two 
Vice-Presidents of the League; ten representatives of the League, 
who shall be truly representative of its membership, to be appointed 
by the President of the League by and with the advice and consent 
of the Board of Directors of the League ; two representatives of non- 
members of the League to be selected in a manner approved by the 
Administrator; and not more than three representatives, without 
vote, to be appointed by the Administrator. 

2. (a) In the exercise of its powers and in the performance of its 
duties, the Code Authority shall use and employ the Lea^gue, pro- 
vided that nothing herein shall relieve the Code Authority of its 
duties or responsibilities under this Code, and it shall be answerable 
to the Administrator for any acts performed by the League. 

(b) The League may delegate any of its duties to State or Terri- 
torial leagues of Associations, including the Council of the District 
of Columbia, or to such agents or committees as it may appoint, whose 
personnel, duties, and powers may be changed by the League from 
time to time. 

3. The Code Authority shall have the following powers and duties 
to the extent permitted by th^. Act, subject to the right of the Ad- 
ministrator to review or disapprove any action taken by the Code 
Authority : 

(a) To administer, supervise, and promote the performance of 
the provisions of this Code. 

(b) To collect all data and statistics called for by this Code, or 
required by the President or the Administrator, or pertinent to 
the effectuation of Title I of said Act, and, in its discretion, dis- 
seminate the summaries thereof. 

(c) To represent associations in conferring with the President 
or the Administrator with respect to the application of this Code 
and of said Act and any regulations issued thereunder, and to hear 



2S5 

complaints and adjust the same; to coordinate the administration 
of this Code and such codes, if any, as may affect any related ac- 
tivity, and to receive proposals for supplementary provisions and 
amendments to this Code. 

4. Associations shall be entitled to participate in and share the 
benefits of the activities of the Code Authority by assenting to and 
complying with the requirements of this Code and sustaining their 
pro rata share of the expenses of administration, calculated on the 
basis of assets and/or such other factors as may be deemed equitable, 
and as shall be determined by the Code Authority, subject to review 
and approval by the Administrator. Assent of associations shall be 
given in writing to the Managing Director, Code Authority, care 
of the United States Building and Loan League, 104 South Michigan 
Avenue, Chicago, Illinois. 

Article VII — Fair Practices 

To effectuate the purposes of the National Industrial Recovery 
Act all associations shall comply with the following rules governing 
fair competition in associations' practices, which shall become effec- 
tive sixty (60) days after the approval of this Code by the President 
of the United States. 

1. (a) Within cities, towns, counties, or other trade areas, such 
associations therein as are found by the Code Authority to be of the 
same class, kind, and character, shall, by agreement of a majority of 
such associations, establish maximum hours for business operations. 

(b) When such maximum hours are agreed upon and approved by 
the Code Authority, they shall apply to all associations of such class, 
kind, and character in such cities, towns, counties, or other trade 
areas, provided that such associations may observe shorter hours than 
the maximum established. 

2. No association shall use advertising (whether printed, radio, 
display, or of any other nature) or other representation which is 
inaccurate in any material particular or which in any way misrepre- 
sents its services, contracts, investments, or financial condition. 

Article VIII — Monopolies 

No provision of this Code shall be so applied as to permit mo- 
nopolies or monopolistic practices, or to eliminate, oppress, or to 
discriminate against small enterprises. 

Article IX — Violations 

Violation by any association of any provision of this Code is an 
unfair method of competition. 

Article X — General Provision 

It is expressly provided that no provision of this Code shall be 
interpreted or applied so as to conflict in any way with any federal 
or state law or any rule, regulation, or order which may have been 
or may be issued by any federal or state supervising authority appli- 
cable to associations. 



2S6 
Article XI — Alterations and Amend3ients 

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, ap- 
proval, license, rule, or regulation issued under Title I of said Act, 
and specifically, but without limitation, to the right of the President 
to cancel or modify his approval of this Code or any conditions 
imposed by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 
modified on the basis of experience or changes in circumstances, such 
modification to be based upon application to the Code Authority and 
to the Administrator and such notice and hearing as he shall specify, 
and to become effective on approval by the President. 

Approved Code No. 169. 
Registry No. 1712-02. 



Approved Code No. 170 
CODE OF FAIR COMPETITION 

FOR THE 

GRINDING WHEEL INDUSTRY 

As Approved on December 21. 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of title I of the National Industrial 
Recovery Act, approved June IG, 1933, for my approval of a Code 
of Fair Competition for the Grinding Wheel 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 report and recommendations and 
findings of the Administrator and do order that the said code of fair 
competition be, and it is hereby, approved. 

FRANKLIN D. ROOSEVELT. 
Approval recommended: 
Hugh S. Johnson, 

A dministrator. 
The White House, 

December 21, 1933. 

(237) 



anaTG" Sl.VllO 34 



December 8, 1933. 
The President, 

The 'White Bouse. 
Sir: This is a report on the Code of Fair Competition for the 
Grinding AVlieel Industry in the United States, the hearing having 
been conducted in Washington on October 26, 1933, in accordance 
with the provisions of the National Industrial rRecovery Act. 

PROVISIONS FOR HOURS AND WAGES 

The maximum of 40 hours a week and 8 hours a day is provided 
for factory employees except during peak periods when they 'will be 
permitted 36 additional hours in any 3-month period^ but not more 
than 48 hours in any one week. Time and a half will be paid for 
hours in excess of 40 per week and 8 per day to the above employees 
including emergency maintenance and repair workers who will not 
be limited in hours, and to shipping crews who will have a tolerance 
of 10 percent over the normal maximum hours. Kiln tenders will 
be limited to 48 hours a week, and watchmen to 56 hours. Office 
employees will be limited to an average of 40 hours in any one week 
over a 3-month period, and 48 hours in any one week. Those in a 
managerial, executive, or supervisory capacity will not be limited in 
hours. 

The minimum wage to factory workers will be 40 cents to male 
and female employees engaged in the same work. To female em- 
ployees not engaged in the same work as men, the minimum pay will 
be 35 cents. Learners will receive no less than 80 percent of the 
above minimum rates. Office employees will bo paid $15 per week, 
except for office boys and girls and messengers, who Avill receive 80 
percent of this minimum. 

CHILD LABOR 

The minimum age of employees in this industry will be 16 years, 
except in hazardous occupations, where the minimum age will be 18 
years. 

ECONOMIC EFFECT OF CODE 

The 40-hour maximum week adopted by the President's Eeem- 
ployment Agreement and provided by the Code, and the new business 
since June 1933, have increased employment 30 percent. The maxi- 
mum hours during the early part of 1933 and in previous years were 
as higli as 60 per week. The average working time in 1929 was 51l^ 
hours per week. Employment dropped from 4,254 persons in 1929 
to 2,160 in the early part of 1933 or 49 percent. Since June, this 
figure has increased to 2,674, or almost to the 1931 employment level. 

(288) 



2S9 

The minimum pay for employees in this industry in 1929 and since 
June 1933, has been 30 cents, and less than this during the depression. 
Thus the minimum of 40 and 35 cents provided by the Code should 
raise the standard of wages appreciably. 

Sales of this Industry have decreased from $29,980,000 in 1929 to 
$7,647,000 in 1932 or over 74 percent. In 1929, sales were 62 percent 
of the $48,000,000 production capacity of 41 concerns ; and in 1932, 15 
percent of the $50,000,000 capacity of the present 42 concerns. 

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 
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 is approved. 
Respectfully, 

Hugh S. Johnson, 

A dTuinistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

GRINDING WHEEL 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 Grinding Wheel Industry, and upon 
approval by the President shall be the standard of fair competition 
for this industry, and binding upon every member thereof. 

Article II — Definitions 

The term " Grinding Wheel Industry " or " Industry " as used 
herein shall mean the manufacture and the sale by the manufac- 
turers of grinding wheels, bricks, stones, segments, blocks, and solid 
discs which are employed in grinding, sharpening, polishing, and for 
the removal of stock of metal, stone, wood, and other materials, but 
is not defined to mean the fashioning and selling of natural sandstone 
wheels, including natural sandstone pulpstones. 

The term "Association " means the Grinding Wheel Manufactur- 
ers' Association. 

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

The term " learner " as used herein, means a person having no pre- 
vious experience in the Industry and whose period of employment in 
the Industry as such shall not exceed three months. 

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 an employer or 
on his or its own behalf. 

The term " member of the Code " includes any member of the 
Industiy who shall expressly signify assent to this Code. 

The term "Act " means Title I of the National Industry Recovery 
Act. 

The term " Administrator " means the Administrator for Indus- 
trial Recovery. 

The term "Administration " means the National Recovery Adminis- 
tration. 

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

(290) 



291 
Artici.e III — Hours 

Section 1. No accounting, clerical, office, service or sales emploj^ees 
(except outside salesmen), or any other employee shall, except as 
hereinafter provided, work or be permitted to work more than a 
maximum week of forty (40) hours averaged over a three-month 
period ; provided, however, that such employees shall not be employed 
more than forty-eight (48) hours in any week; and provided further 
that no employees to whom this Section 1 applies shall work more 
than six (6) days in any calendar week. 

Sec. 2. No factory or mechanical worker or artisan shall, except 
as hereinafter provided, -work or be permitted to work in excess of 
forty (40) hours in any seven (7) day period, or eight (8) hours in 
any twenty-four (24) hour period; provided, however, that, during 
any period in which a concentrated demand upon any division of 
the Industry shall place an unusual and temporary burden for pro- 
duction upon its facilities, an employee of such division may be 
permitted to work not more than thirty-six (36) additional hours 
in any three (3) month period, but not more than forty-eight (48) 
hours in any seven (7) day period; and provided further that no 
employee to whom this Section 2 applies shall work more than six 
(6) days in any calendar week. 

Sec. 3. The maximum hours fixed in the foregoing paragraphs 
shall not apply to employees in a managerial, executive, or super- 
visory capacity (not including underforemen or bosses engaged on 
production work) receiving thirty -five (35) dollars or more per 
week, nor to employees engaged in taking annual inventory, or 
on emergency, maintenance, and repair work involving break-downs 
or protection of life and property. 

Sec. 4. All employees to whom Sections 2 and 3 of this Article 
III apply, except managerial, executive, and supervisory employees 
receiving thirty-five (35j dollars or more per week, who work more 
than forty (40) hours m any seven (7) day period or more than 
eight (8) hours in any twenty-four (24) hour period, shall be paid 
not less than one and one half (IV2) times tneir normal rate of 
pay for said excess. 

Sec. 5. No watchmen shall be permitted to work in excess of 
fifty-six (5G) hours in any one week. 

Sec. 6. Kiln tenders shall be permitted to work a maximum of 
forty-eight (48) hours per week to meet the demand of emergency 
peaks in production. 

Sec. 7. Employees engaged on shipping crews, including truck 
drivers, shall be permitted a tolerance of ten (10) percent over the 
maximum hours provided in Sections (1) and (2) of this Article III. 

Article IV — Wages 

Section 1. No male employee, except as hereinafter provided, shall 
be paid at less than the rate of forty (40) cents an hour and no 
female employee shall be paid at less than the rate of thirty-five (35) 
cents an hour; provided, however, that learners may be paid not 
less than 80% of such minimum wage. The number of employees 
so paid as learners shall not exceed 5% of the total number of em- 



292 

ployees of any one employer, but in any case sucli employer shall 
be entitled to two (2) such employees. 

Sec. 2. This Article IV establishes minimum rates of pay, re- 
gardless of Avhether the employee is compensated on the basis of a 
time-rate or a piecework performance, or otherwise. 

Sec. 3. A person whose earning capacity is limited because of 
age or physical or mental handicap may be employed on light work 
at a wage below the minimum established by this Code if the em- 
ployer obtains from the State authority designated by the United 
States Department of Labor a certificate authorizing his employ- 
ment 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. 4. The minimum wage that shall be paid to employees to 
whom Section (1) of Article III applies, shall not be less than 
fifteen (15) dollars per week; provided, however, that office boys 
and girls and messengers shall be paid at a rate not less than eighty 
(80) percent of the minimum salary provided in this Section (4) 
of Article IV; and provided further that the number of such office 
boys and girls and messengers so paid shall constitute not more than 
five (5) percent of the total number of employees of any one em- 
ployer, and in any case, such employer shall be entitled to two (2) 
euch employees. 

Sec. 5. Female employees performing substantiallj'' the same work 
as male employees shall receive the same rate of pay as male 
employees. 

Sec. 6. The wage rates for all operations and duties shall be equit- 
ably adjusted when this Code becomes effective, and in making such 
adjustments, in no case shall the hourly rate be decreased. Each 
member of the industry shall report all such adjustments to the Code 
Authority within 30 days of the effective date. 

Sec. 7. No emj)loyer shall reclassify employees or duties of occu- 
pations performed, or engage in any other subterfuge for the purpose 
of defeating the purposes or provisions of the Act or of this Code. 

Article V — Child Labor 

No person under sixteen (16) years of age shall be employed in 
the Industry. No person under eighteen (18) years of age shall be 
employed at operations or occupations which are hazardous in na- 
ture or dangerous to health. The Code Authority shall submit to 
the administrator before February 1, 1934, a list of such operations 
or occupations. In any State an employer shall be deemed to have 
complied with this provision as to age if he shall have on file a cer- 
tificate or permit duly signed by the Authority in such State empow- 
ered to issue employment or age certificates or permits showing that 
the employee is of the required age. 

Article VI — General Labor Provisions 

Section 1. Employees shall have the right to organize and bar- 
gain collectively through representatives of their own choosing, and 
shall be free from the interference, restraint, or coercion of employ- 



293 

ers of labor, or their agents, in the designation of such representa- 
tives or in self -organization or in other concerted activities for the 
purpose of collective bargaining or other mutual aid or protection. 

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

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

Sec. 4. Within each State, no provision of this Code shall super- 
sede any laws of such State imposing more stringent requirements, 
regulating the age of employees, wages, hours of work, or health, fire 
or general working conditions, than under this Code. 

Sec. 5. Every employer shall make reasonable provisions for the 
safety and health of his employees at the place and during the hours 
of their employment. 

Sec. 6. All employers shall post complete copies of the labor provi- 
sions of this Code in conspicuous places accessible to employees. 

Article VII — Adminisitjatign 

Section 1. (a) To effectuate the policies of Title I of the National 
Industrial Recovery Act a Code Authority is hereby designated to 
cooperate with the Administrator as a Planning and Fair Practice 
Agency for the Grinding AVheel Industi-y. The Code Authority 
shall consist of seven (7) members of the Industry who are mem- 
bei's of the Association and one member of the Industry who is not 
a member of the Association, selected by a fair method of selection, 
provided any nonmembers of the Association in the Industry desire 
such representation. 

(b) In addition to membership as above provided, there may be 
from one to three members, without vote, as representatives of the 
Administrator, to be appointed by him, to serve for terms of six (6) 
months to one (1) year from the date of appointment. 

(c) The Board of Directors of the Grinding Wheel Manufac- 
turers Association shall appoint the members of the Code Authority, 
to represent the said Association and those may or may not be 
members of the Board of Directors, and the nonmembers of the 
Association shall nominate and elect their member by a fair method 
subject to the approval of the Administrator. 

(d) Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restriction on membership, and (2) submit 
to the Administrator true copies of its articles of association, bylaws, 
regulations, and any amendments when made 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. 

(e) In order that the Code Authority shall at all times be truly 
representative of the Industry and in other respects complv with 
the provisions of the Act, the Administrator may prescribe such 
hearings as he may deem proper; and thereafter if he shall find 



294 

that the Code Authority is not truly representative or does not in 
other respects comply with the provisions of the Act, may require 
an appropriate modification in the method of selection of the Code 
Authority. 

(f) 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. Such 
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. 

Sec. 2. 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 approve 
or disapprove any action taken by the Code Authority : 

(a) To collect from every member of the Industry such informa- 
tion concerning Avage rates and hours of work as may be required 
to enable the Code Authoritj^ to determine whether there has been 
compliance with the provisions of the National Industrial Recovery 
Act and with the provisions of this Code, and such further informa- 
tion as maj?^ be required to enable the Industry through said Code 
Authority to report required information to the Administrator. 

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

(b) The Code Authority shall study this Code and the operation 
thereof and shall make any recommendations from time to time to 
the Administrator which it deems desirable for modification or addi- 
tion thereto which upon approval of the President of the United 
States, after such hearing as he may prescribe, shall become a part 
of this Code and have full force and effect as provisions hereof. 

Article VIII — Trade Practices 

It shall be an unfair method of competition and a violation of this 
Code for any member of the Industry to engage in any of the follow- 
ing practices : 

(1) The false marking or branding of the products of the Indus- 
try, with the intent of misleading or deceiving purchasers with 
respect to the quantity, quality, size, or substance of the goods 
purchased. 

(2) Making or causing or permitting to be made or published any 
false, untrue, or deceptive statement by way of advertisement or 
otherwise concerning the quality, quantity, substance, character, na- 
ture, origin, size, or preparation of any product of the Industry, 
having the tendency and capacity to mislead or deceive purchasers or 
prospective purchasers or to affect injuriously the business of com- 
petitors. 

(3) The imitation of the trade marks, trade names, slogans, or 
other marks of identifiction of competitors, having the tendency and 



295 

capacity to mislead or dec-eivo purchasers or i>ro.spective purchasers, 
or to attVct injuriously the business of such com])etitors, 

(4) The defamation of competitors b}^ falsely imputing to them 
dishonorable conduct, inability to perform contracts, or questionable 
credit stanilino;. or by other false representation, or the false dis- 
paragement of the quality of their goods. 

(5) Wilfully inducing or attempting to induce the breach of exist- 
ing contracts between competitors and their customers, or interfering 
with or obstructing the performance of any such contractual duties 
or services, with the purpose and effect of hampering, injuring, or 
embarrassing competitors in their business. 

(G) Initiating negotiations with em]Dloyees of competitors to entice 
them away or in(hice them to violate their contracts. 

(7) The making of promises of deliver}^ that are misleading or 
that cannot reasonably be fulfilled. 

(8) The secret payment or allowance to any customer of rebate.^^ 
refimds, or credits, whether in the form of money or otherwise. 

(9) The paying or promising to pay the customers or their em- 
ployees, or prospective customers, of a commission or consideration 
of any character; or unwarranted entertainment or improper gratui- 
ties for the purpose of inducing or compensating for a sale. This 
provision shall not be construed to prohibit free and general dis- 
tribution of articles commonly used for advertisement except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

(10) The sale or offering for sale of any products under a guar- 
antee of performance because of the impossibility of defining and 
maintaining the conditions under which such a guarantee can hon- 
estly be made. Guarantees of material and workmanship are quite 
proper. 

(11) The shipi)ing of products not conforming in respect to 
dimensional tolerances to the standards of the Association to a user 
of products for trial or on regular orders, unless specified by the 
user, thus putting liis competitor at a disadvantage when the con- 
sumer compiles relative cost figures; provided, however, that if the 
application of these standards should at any time work unjust hard- 
ship upon any member of the Industry, such member may ajjpeal to 
the Code Authority, which shall have the power to grant such relief 
as justice may require. If the Code Authority should deny relief or 
should fail to take action upon any application for relief Avithin 
twenty (20) da^'s from the date of said application, such member 
may appeal to the Administrator, who shall have power to grant 
such relief. 

(12) Xo member of the Industry shall sell or exchange any prod- 
ucts at a price below his own individual cost, except to meet the cost 
of a lower cost producer w'ho is not violating the provisions of this 
Code, provided that nothing in this paragraph (12) shall prohibit 
the sale below cost of obsolete or discontinued lines, distress mer- 
chandise, or any other article inferior to the standard product, where 
such conditions of obsoleteness, damage, or inferiority is clearly 
indicated. 

(13) Each member of the Industry shall within thirty (30) days 
after the effective date of the Code file with the Code Authority a 



296 

net price list or a price list and discount sheet, as the case may be, 
individually prepared by him, showing his current prices or prices 
and discounts and terms of payment, and if he so desires the name of 
his customers to whom limit prices are quoted. This information 
will be open to examination at the office of the Code Authority and 
each member of the Industry Avill have a right to examination of 
these records to the same degree that he has furnished similar in- 
formation. No member of the Industry will deviate from his lists 
thus filed until revised lists have been filed with the Code Authority 
and copies therec i shall be available for examination by all members 
of the Industry to the same degree as they are supplying revised 
information. No member of the Industry shall sell his products at 
prices or terms more favorable than those provided in his current 
net price list or price lists and discount sheets as submitted to the 
Code Authority, except as otherwise provided herein. 

(14) Wheels may be furnished for trial purposes under the fol- 
lowing terms : Full payment is to be made if wheels are satisfactory, 
or if partially satisfactory and usable, to be paid for on the basis of 
value received, or if unusable, to be returned for full credit. All trial 
shipments shall be invoiced at the member's established prices. Any 
deviation from these terms except where the amount involved is less 
than two ($2.00) dollars shall be considered unfair competition. 

(15) The giving away of or offering free trial wheels or products 
except where the amount involved is less than two ($2.00) dollars 
is hereby considered as unfair competition. 

(16) Price guarantees shall be given only on bona fide orders 
covering definite quantities of definite specifications and the price 
prevailing on the date the order is placed may apply only to all 
orders calling for shipment within eight (8) weeks of the date of 
the order. On such shipments as may be deferred beyond the eight 
(8) weeks' period at the request of the customer, the price prevail- 
ing at the time of shipment shall apply. Provided further, that 
notwithstanding the provisions of Section (13) of this Article VIII, 
any written quotation accepted by a customer within ten days for 
shipment within eight (8) weeks may be filled at the prices shown 
on such written quotation. 

Article IX — Modification 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of subsection (b) of Section 10 of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, 
approval, license, rule, or regulation issued under Title I of said 
Act and specifically, but without limitation, to the right of the 
President to cancel or modify his approval of this Code or any con- 
ditions imposed by him upon his approval thereof. 

Approved Code No. 170. 
Registry No. 1001-03. 



Approved Code No. 171 
CODE OF FAIR COMPETITION 



FOR THE 



ROLLING STEEL DOOR INDUSTRY 

As Approved on December 21, 1933 



BY 



PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of title I of the National Industrial 
Recovery Act, approved June 16j 1933, for my approval of a Codo 
of Fair Competition for the Rolling Steel Door 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 said act have been 
met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority A^ested in me by title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt the findings and approve the report and recom- 
mendations of the Administrator and do order that the said code of 
fair competition be, and it is hereby, approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dminis trator. 
The White House, 

Decemher 9A, 1933. 

-ZlliZ^ 290-27 33 (297) 



December 7, 1933. 
The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Rolling Steel Door Industry in the United States as revised after 
the hearing conducted in Washington on October 14, 1933, in accord- 
ance with the jDrovisions of the National Industrial Recovery Act. 

WORKING HOURS 

This Code provides that no employee shall work more than 3G 
hours a week, 8 hours a day, and 5 days a week. There are four 
exceptions. A certain flexioility is needed in the hours of this 
industry. To meet seasonal or peak demands and for a period of 
8 weeks in any 6 months, employees are permitted to work 40 hours 
per week. The second exception covers office employees who are 
permitted to work no more than 40 hours and 5I/2 days a week. The 
third exception is of traveling salesmen and persons employed in a 
managerial or executive capacity upon whom no hour limitation is 
placed. The fourth exception is of employees engaged in emergency 
maintenance or emergency repair work. 

WAGES 

There is no differential either by geographical section or by sex. 
The minimum wage is 40 cents per hour for all employees except 
office employees, whose minimum wage is fixed at $15.00 per week. 
Additional provisions are incorporated to carry out the terms of 
the Act and these include the stipulation that the minimum wage 
is a minimum rate of pay irrespective of whether an emploj^ee is 
actually compensated on a time rate, piecework, or other basis; the 
prohibition of any evasion of the wage schedules through dismissals 
and reemployment; an equitable readjustment of all wages aboA^e 
the minimum ; and the requirement that employment of handicapped 
persons shall be limited to such persons and conditions of emploj'^- 
ment as are prescribed by the State authority designated by the 
United States Department of Labor to act in such cases. 

GENERAL LABOR PROVISIONS 

This Code provides that no person under 16 years of age shall be 
employed in the industry, nor anyone under 18 at operations or occu- 
pations hazardous in nature or dangerous to health. 

Subparagraph (a) of section 7 of Title I of the National Indus- 
trial Recovery Act is embodied. The Code further provides that 
employers shall not reclassify employees or the duties of occupations 
so as to defeat the purpose of the Act and requires every employer 

(298) 



299 

to make reasonable provision for the safety and health of his em- 
ployees, to post complete copies of this Code in accessible places, and 
to make payment of all wages at regular pay periods and in lawful 
currency or by negotiable check payable on demand. 

ECONOMIC EFFECT OF THE CODE 

The Rolling Steel Door Industry is in some ways closely allied to 
the Construction Industry, but insofar as production and sales are 
concerned it has a very specialized market and its revival depends on 
the revival of construction of particular kinds of buildings, such as 
warehouses, garages, and factories. Employment in this industry has 
fallen by one half since 1929. Sales have fallen from $6,000,000 in 
1929 to $1,500,000 in 1932, a decrease of approximately 63%. In 
1933 sales have amounted so far to $1,200,000. The ratio of produc- 
tion to capacity, which was approximately 45% in 1929, has been 
20% in 1933. 

Although the immediate gains in employment and wages in this 
industry will not be extensive, the Code provides opportunity for 
great expansion in both the number of employees and their wages. 
When the anticipated expansion comes in this industry with the 
expected rehabilitation of the Construction Industry, the Code will 
prove a means by which the number of employees and their wages 
may be as much as doubled. Price cutting, which has greatly demor- 
alized conditions in the industry, is prohibited by the provisions of 
the Code. 

FINDINGS 

The Administrator finds that : (a) The Code as recommended com- 
plies in all respects with the mandatory provisions of Title I of tho 
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 ad- 
mission to membership therein and is truly representative of the 
Rolling Steel Door Industry; and that 

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

It is recommended, therefore, that this Code be approved. 
Respectfully, 

Hugh S. Johnson, 

A d/niinistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

ROLLING STEEL DOOR INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Re- 
coveiT Act, this Code is submitted as a Code of Fair Competition 
for the Rolling Steel Door 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. 

Article II — Definitions 

Section 1. The term " Rolling Steel Door Industry " or " Indus- 
try " as used heroin is defined to mean the business of manufactur- 
ing for sale rolling steel doors, rolling steel shutters, including de- 
vices, appliances, and/or equipment used in connection therewith, 
and the installation thereof by the manufacturer. 

Sec. 2. The term " Products " as used herein is defined to mean 
rolling steel doors, rolling steel shutters, and devices, appliances, 
and equipment used in connection therewith. 

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 em- 
ployer 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 " Institute " as used herein is defined to mean 
" The Rolling Door Institute." 

Sec. 6. The terms " Act " and " Administrator " as used herein 
shall mean respectively Title I of the National Industrial Recovery 
Act, and the Administrator for Industrial Recovery. 

Article III — Hours 

Section 1. Maxirmmn Hours. — No employee shall be permittee^ to 
work in excess of thirty-six (36) hours in any week (seven (7) day 
period), or eight (8) hours in any day (twenty-four (24) hour 
period), or more than five (5) days in any seven (7) day period, 
except that in cases of peak demand employees may work forty (40) 
hours per week for eight (8) weeks in any six (6) months' period. 

At least time and one half shall be paid for hours worked in excess 
of eight (8) hours in any one day or forty (40) hours in any one 
week. 

Sec. 2. Hours for Clerical and 0-ffice Employees. — No person 
employed in clerical or office work shall be permitted to work in 

(300) 



301 

excess of forty (40) hours in any week (seven (7) day period), or 
nine (9) hours in any day (twenty-four (24) hour period), or five 
and one half (5^4) days in any seven (7) day period. 

Sec. 3. Exceptions as to Hours. — The provisions of this Article 
shall not apply to traveling salesmen, or to persons employed in a 
managerial or executive capacity who earn not less than thirty-five 
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. Eviployincnt 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 
employers 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 rate of forty cents ($0.40) per hour, ex- 
cept as herein otherwise provided. 

Sec. 2. Minimum Wage for Clerical and Ofjicc Employees. — No 
clerical or office employee shall be paid in any pay period less than 
at the rate of $15.00 per week. 

Sec. 3. Piecework Go'tnpensation — Minimv/m Wages. — This Ar- 
ticle establishes a minimum rate of pay which shall apply, irre- 
spective of whether an employee is actually compensated on a time 
rate, piecework, or other basis. 

Sec. 4. Evasion Through Reemployment. — No employee now em- 
ploj'^ed 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. 

Sec. 5. Wages Above Minimum. — 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- 
creasedj and where in any case an employer has not increased the 
rates oi wages for such employees prior to the effective date of this 
Code by an equitable readjustment of all wage rates such employer 
shall readjust all such wage rates. This provision shall be inter- 
preted in the same manner that Paragraph 7 of the President's Re- 
employment Agreement has been interpreted by the Administrator in 
Interpretations No. 1 and 20. 

Sec. 6. Handicapped Persons. — A person whose earning capacity 
is limited because of age or physical or mental handicap may be em- 
ployed 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. 



302 
Article V — General Labor Provisions 

Seotion 1. Child Labor Provision. — No person under sixteen (16) 
years of age shall be employed in the industry. No person under 
eighteen (18) years of age shall be employed at operations or occupa- 
tions which are hazardous in nature or dangerous to health. The 
Code Authority shall submit to the Administrator before February 
1, 1934, a list of such operations or occupations. In any State an 
employer shall be deemed to have complied with this provision as 
to age if he shall have on file a certificate or permit duly issued by 
the Authority in such State empowered to issue employment or age 
certificates or permits showing that the employee is of the required 
age. 

Sec. 2. Provisions From the Act. — In compliance with Section 7 
(a) of the Act, it is provided: 

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

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

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

Sec. 3. Recl<iSsdflcation of Employees. — No 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. — Every employer shall 
make reasonable provision for the safety and health of his em- 
ployees at the place and during the hours of their employment. 
Standards for safety and health shall be submitted by the Code 
Authority to the Administrator within six (6) months after the 
effective date of this Code. 

Sec. 6. State Laws. — No provisions in this Code shall supersede 
any State or Federal law which imposes on employers more strin- 
gent requirements 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. 

Sec. 7. Paym^ent of 'Wages. — All employers 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 weekly 
period. These wages shall be exempt from any payment for pen- 
sions, insurance, or sick benefits other than those voluntarily paid 
by employees. Employers or their agents shall not accept, directly 



303 

or indirectly, rebates on such wages or give anything of value nor 
extend any favors to any person for the purpose of influencing rates 
of ^Yages or working conditions of their employees. 

The provisions of this section regarding payment of wages at the 
end of each weekly period shall not apply to persons employed in a 
managerial or executive capacity who earn not less than thirty-five 
dollars ($35.00) per week, nor to persons emploj-ed in clerical or 
office work. The wages for persons employed in clerical or office 
work shall be paid at the end of pay periods not to exceed bimonthly 
periods. 

Sec. 8. Industrial Relations Board.— There may be established by 
the Administrator, a National Industrial Relations Board for the 
Industry consisting of an equal number of representatives of em- 
ployers and employees to which shall be referred for determination 
matters arising under the Code relating to labor. Where a majority 
agreement of the Board cannot be reached, the Board shall select 
an impartial chairman to render a decision. The creation and 
functioning of these Boards including the selection of representatives 
of emplovees shall be in accordance with Section 7 of the Act. If 
no truly representative labor organization exists, the employee mem- 
bers of such Board shall be chosen by the Labor Advisory Board of 
the N.R.A. The employer representatives shall be chosen by the 
Code Authority. The Industrial Relations Board may establish such 
subsidiary agencies constituted in like manner as it finds necessary. 

Article VI — Organization, Powers, and Duties of the Code 

Authority 

Section 1. Organization and C onstitution. — A Code Authority is 
hereby constituted to cooperate with the Administrator in the admin- 
istration of this Code. 

Sec. 2. The Code Authority shall consist of three (3) members to 
be selected as f ollovv^s : 

Members of the industry shall elect the industry members of the 
Code Authority by a majority vote of the members of the industry. 
Such members shall be elected from directors, officers or executives 
of members of the industry which are memoers of the Institute. 

Sec. 3. The Institute is hereby designated as the agency to conduct 
an election of the members of the Code Authority within fifteen (15) 
days after the effective date of this Code, and the succeeding annual 
elections of members of the Code Authority. 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 
members of the industry. In the event of any vacancy in the mem- 
bership of the Code Authority, a special meeting of the members of 
the industiy for an election to fill the incomplete terms of such 
members shall be called. Notice of the time and place of each elec- 
tion shall be sent by registered mail to all members of the industry 
at least ten (10) 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 not more than three (3) members, without vote, to be appointed 



304 

by the Administrator, to serve for terms of from six (6) months to 
one (1) year so arranged that the terms do not expire at the same 
time. 

Sec. 5. The representatives who may be appointed by the Admin- 
istrator, 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 (1) impose no inequitable restrictions on membership, and (2) 
submit to the Administrator true copies of its articles of assoca- 
tion, 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. 

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 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 or any sub-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 sustaining 
their reasonable share of the expenses of its administration. Such 
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 sucn other factors as 
may be deemed equitable. 

Sec. 9. Nothing contained in this Code shall constitute the inem- 
bers of the Code Authority partners for any purpose. Nor shall any 
member of the Code Authority be liable in any manner to anyone for 
any act of any other member, officer, agent, or employee of the Code 
Authority. Nor shall any member of the Code Authority exercising 
reasonable diligence in the conduct of his duties hereunder, be liable 
to anyone for any action or omission to act under the Code, except 
for his own wilful 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 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 rec^uired for the administration of the Code and 
to provide for submission by members of such information and 
reports as the Administrator may deem necessary for the purposes 
recited in Section 3 (a) of the Act, which information and reports 



305 

shnll be submitted by members to such administrative and/or govern- 
ment agencies as the Administrator may designate; provided that 
nothing in this Code sliall relieve any member of the industry of any 
existing obligations to furnish reports to any government agency. 
No individual reports shall be disclosed to an}' other member of 
the industry or any other part}^ except to such governmental agencies 
as may be directed by the Administrator. 

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

(e) To make recommendations to the Administrator for the co- 
orclination of the administration of this Code with such other codes, 
if any, as may be related to the industry. 

(f) To secure from members of the industry ^n equitable and 
proportionate 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 X.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 stabili- 
zation of employment.' 

(i) To establish minimum standards of quality of material, work- 
manship, operation, and installation of the products of the industry. 

Article VII — Publicity of Puices, Terms and Conditions of Sale 

Section 1. Each member of the Industry shall, within ten (10) 
days after the effective date of the Code, file and maintain with the 
Code Authority schedules of prices for all its products and sched- 
ules of prices for the installation thereof, which schedules shall 
include, but without limitation, discounts, specifications, terms, and 
conditions of sale. 

Sec. 2. In the event of any change by any member of the Industry 
in any price, discount, specification, term or condition of sale, he shall 
file full and complete copies of every such change with the Code 
Authority, not less than ten (10) days in advance of the effective 
date of any such change. Copies thereof, with notice of the effective 
date of such change, shall be immediately published and distributed 
by the Code Authority to the interested members of the Industry who 
may file, if they so desire, revisions of their prices, discounts, speci- 
fications, terms or conditions of sale, which, if filed not less than five 
(5) days prior to such effective date, shall be eft'ective on the same 
such effective date. 

Sp:c. 3. Such specifications, price lists, discounts, and terms and 
conditions of sale together with any changes thereto shall be open 
to inspection at all reasonable times by any interested party. 

Sec. 4, 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 



306 

prices, discounts, specifications, terms, and conditions of sale filed 
in the manner described herein above. Each member of tlie Industry 
shall have the right, individually, to file new prices, discounts, terms, 
and conditions of sale, from time to time, as herein provided. 

Article VIII — Trade Practice Rules 

General Defnition. — For all purposes of the Code the acts described 
in this Article shall constitute unfair practices. Any member of 
the industry who shall directly or indirectly, through any officer, 
employee, agent, or representative, knowingly use, employ, or permit 
to be employed, any of such unfair practices shall be guilty of 
a violation of the Code. 

Rule 1. — No member of the industry shall use or publish adver- 
tising (whether printed, radio, display, or of any other nature) 
which is misleading or inaccurate in any material particular, nor 
shall any member in any way misrepresent any goods (including, 
but without limitation, its use, trade mark, grade, quality, quantity, 
origin, size, substance, character, nature, finish, material, content, or 
preparation) or credit terms, values, policies, services, or the nature 
or form of the business conducted. 

Rule 2. — Members shall not invoice products or services at other 
than the true selling price or withhold from or insert in the invoice 
statements which make the invoice an incomplete or a false record, 
wholly or in part, of the transaction represented on the face thereof. 

Rule 3. — No member sliall make false or disparaging statements 
with respect to a competitor's business, ipethocls, practices, or 
products. 

Rule If. — No member of the industry shall sell below his allowable 
cost. 

Pursuant to the provisions of Article VI, the Code Authority shall 
formulate or cause to be formulated standard methods or S3'^stems 
of cost accounting for use in this industry, which methods or sys- 
tems shall be adaptable to the cost accounting procedure of, and to 
the business of this industry. Such methods or systems shall specify 
the factors that sliall determine the cost for each member of the 
industry 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. Thereafter, in determining costs, each 
member of the industry shall use a cost accounting system 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 S.—No member of the industry shall publish or circulate 
unjustified or unwarranted threats of legal proceedings which tend 
to or have the effect of harassing competitors or intimidating their 
customers. Failure to prosecute in due course shall be evidence 
that any such threat is unwarranted or unjustified. 

Rule 6. — No member of the industry shall offer or make any secret 
or discriminatory payment or allowance or a rebate, refund, com- 
mission, credit, unearned discount or excess allowance, whether in 
the form of money or otherwise, nor shall a member of the industry 



offer or extend to any customer any secret discriminatory service or 
privilege for the purpose of influencing a sale. 

RuU 7. — Xo member of the industry shall give, permit to be given, 
or directly offer to give anything of value for the purpose of in- 
fluencing or rewarding the action of any employee, agent, or repre- 
sentative of another in relation to the business of the employer of 
such employee, the principal of such agent, or the represented party, 
without the knowledge of such employer, principal, or part3\ Com- 
mercial bribery provisions shall not be construed to prohibit free 
and general distribution of articles commonly used for advertising 
except so far as such articles are actually used for conmiercial 
bribery as hereinabove defined. 

Rule S. — No member of the industry shall attempt to induce the 
breach of an existing contract between a competitor and his em- 
ployee, or customer or source of supply ; nor shall any such member 
interfere with or obstruct the performance of such contractual duties 
or services. 

Rule 9. — No member of the industry shall, directly or indirectly, 
substitute his own or different parts in the repair or alteration of 
a competitor's product or parts thereof without the express authority 
of the owner. 

Rule 10. — No member of the industry shall, directly or indirectly, 
remove or destroy any trade mark or other identification of any 
product or part of a product of the industry supplied by a competi- 
tor with the intent or effect of deceiving purchaser or a prospective 
purchaser. 

Rule 11. — No member of the industry shall combine cjuotations or 
contracts for any product of this industry with any quotation or 
contract for any other material, labor, or service, for the purpose 
and with the intent of concealing the true selling price of the 
product of this industry. 

Rule 12. — No member shall offer for sale any product of the indus- 
tr}'^ by any false means or device which tends to mislead or deceive 
purchasers, competitors and/or others as to the quantity, quality, 
measurements, substances, or size of such products, labor, or service. 
If any member of the industry fails immediately to correct such mis- 
representation upon being notified thereof, such failure shall be 
deemed a confession of wilful intent to deceive and mislead such 
purchasers, competitors and/or others. 

Rule 13. — No member of the industry shall omit from its quotation, 
proposal, or bid, any material, labor, or service required and/or 
called for by the plans, specifications, or other estimating or pur^ 
chasing data in order to avoid full responsibility for the complete 
compliance with all provisions or for the purpose and with the intent 
of subsequently informing the purchaser that such omitted material, 
labor, or service was included, in order to underbid a competitor. 

Rule Uf. — Verbal quotations shall be confirmed in writing. A 
duplicate or true copy of all quotations given and contracts received 
by a member, shall be filed with the Code Authority within three 
days from the date of issuing a quotation and/or after receiving a 
contract. 

Rule 15. — The terms of payment of products sold F. O. B. member's 
factory or delivered to destination shall not be more favorable than 



308 

to provide for " Net Casli thirty (30) days from date of shipment." 
The terms of payment of products sold erected shall not be more 
favorable than to provide for " eighty -five (85) percent of the pro- 
portionate value of the vpork done shall be due monthly. The final 
payment shall be due and payable thirty (30) days after completion 
of the contract." 

Rule 16. — No member of the industry shall guarantee for a period 
longer than one (1) year from date of installation to furnish or re- 
place, free of charge, material found to be defective. 

Rule 17. — Each member of the Code shall file with the Code Au- 
thority a list of his sales representatives, which list shall be available 
to the other members. Such list shall at all times be kept to date 
by notifying the Secretary of any changes, within ten (10) days 
after being made. 

Rule 18. — No member of the industry shall post-date or pre-date 
any contract, invoice, quotation, or receipt, withhold from or insert 
in any contract, invoice, quotation, or receipt any statement which 
makes such contract, invoice, quotation, or receipt a false statement 
either in whole or in part or accept or offer to accept any such con- 
tract with the effect of injuring the business of a competitor or 
violating the provisions of this Code. 

Article IX — Appeals 

Section 1. Any interested party shall have the right of com- 
plaint to the Code Authority and of a prompt hearing and decision 
under such rules of procedure and proper charges to cover cost 
of investigation and hearing as it may prescribe, in respect to any 
decision, rule, regulation, order, or finding made by the Code 
Authority. 

Sec. 2. Any interested party shall have the right of appeal to 
the Administrator, under such rules and regulations as he may pre- 
scribe, in respect to any decision, rule, regulation, order, or finding 
made by the Code Authority. 

Article X — Modifications 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of subsection (b) of Section 10 of the National Industrial 
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, iDut without limitation, to the right of the 
President toi cancel or modify his approval of this Code or any 
conditions imposed by him upon his approval thereof. 

Sec. 2. This Code, except as to provisions required by the Act, 
may be modified on the basis of experience or changes in circum- 
stances, such modification to be based upon application to the Ad- 
ministrator and such notice and hearing as lie shall specify, and 
to become effective on approval of the President. 



309 

Article XI — jSIoxopolies 

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 XII 

The maximum hours, the minimum wages and conditions of em- 
ployment of all persons engaged in the installation of rolling steel 
doors shall conform to the maximum hours, the minimum wages, and 
conditions of employment provided in the appropriate code or codes 
in the construction industry as approved by the President. 

Article XIII — Registration of IMembers 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 there- 
after 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 XIV — Effectwe Date 

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



Approved Code No. 171. 
Registry No. 1139-01. 



O 



Approved Code No. 172 

CODE OF FAIR COMPETITION 

for the 

RAYON AND SILK DYEING AND PRINTING 
INDUSTRY 

As Approved on December 21, 1933 

By 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Rayon and Silk Dyeinp: and Printing 
Industry, and hearings having been held thereon and the Adminis- 
trator having rendered his report containing an analysis of the said 
code of fair competition together with his recommendations and 
findings with respect thereto, and the Administrator having found 
that the said code of fair competition complies in all respects with 
the pertinent provisions of title I of said act and that the require- 
ments of clauses (1) and (2) of subsection (a) of section 3 of the 
said act have been met: 

XOAV, 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, to become effective in place 
of the code of labor provisions for said industry heretofore approved 
by me on July 22, 1933. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

Deccmher 21, 1033. 

27202 ° 244-225 33 ( 311 ) 



December 9, 1933. 
The President, 

The White House. 

Introduction 

Sir : This is a report on the Hearing of the Code of Fair Competi- 
tion for the Rayon and Silk Dyeing and Printing Industry. 

The hearing ' was held, in the Garden Room of the Mayflower 
Hotel in Washington, D.C., on November 10, 1933, in accordance 
with the provisions of the National Industrial Recovery Act. Every 
person who filed an appearance was freely heard in public and all 
statutory and regulatory requirements were complied with. 

Attached herewith is a copy of the Code which was presented 
by duly qualified and authorized representatives of the above indus- 
try, complying wdth the statutory requirements, as representing 92 
percent of the industry. 

Evidence Submitted 

Pending a Public Hearing upon a Code of Fair Competition the 
Rayon and Silk Dyeing and Printing Industry has been operating 
under an Executive Order dated July 22, 1933. 

In 1929 the industry employed approximately 25,000 people with 
a pay roll of forty million dollars and net sales of 106 million 
dollars. In 1932 the number of people employed had dropped to 
20,000 people, the pay roll to 23 million, and the net sales to 53 mil- 
lion dollars. Actual yardage processed during this period increased, 
which shows that the drop in net sales was due to the shrinkage of 
prices charged for services. 

Since the Executive Order of July 22, 1933, went into effect be- 
tween 4,000 and 6,000 people have been added to the industry, bring- 
ing the number now employed up to the 1929 level. During the same 
period wages have increased approximately 25 percent. 

While wages paid are approximately 25 percent higher than in 
1929, the prices charged by the industry for its services today are 
still approximately 30 percent less than the prices charged for com- 
parable services in 1929 and from 30 to 40 j)ercent less than the peak 
prices from 1926 to 1929. 

Resume of Provisions or the Code 

The Code provides for a minimum wage of 45 cents per hour for 
male employees, 18 years of age and over, and 35 cents per hour for 
female emiDloyees (engaged in tasks not heretofore performed by 
males in the plant in which such females may be employed). 

(312) 



313 

Hours are limited to 40 hours per week, except with respect to 
certain maintenance and repair classifications, for which 48 hours 
employment is permitted. A maximum of 48 hours per week is 
placed upon employees engaged in continuous chemical processes. 
Productive machinery is limited to (80) hours, except that used 
solely for the processing of velvet may be operated not to exceed 120 
hours in any one week. 

Except for the activities of office staff, engineers, electricians, ma- 
chinists, firemen, maintenance employees, and watchmen, no plant is 
allowed to operate between Saturday at G:00 a.m. and Monday at 
C: 00 a.m., nor on legal holidays. 

Findings 
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 subsection (b) of Section 
10 thereof. 

The Institute of Dyers and Printers is representative of the Rayon 
and Silk Dyeing and Printing Industry, and the bylaws of this asso- 
ciation provide no inequitable restrictions to membership. 

The Code is not designed to permit 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 Rayon and Silk Dyeing and Printing 
Industry. 

Respectfully, 

Hugh S. Johnson, 

Administ7'ator, 



CODE OF FAIR COMPETITION 

FOR THE 

RAYON AND SILK DYEING AND PRINTING INDUSTRY 

Article I — Pueposes 

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 Kayon and Silk Dyeing and Printing In- 
dustry, and shall be the standard of fair competition for sucTi in- 
dustry and shall be binding upon every concern engaged therein. 

Article II — Definitions 

1. The term " industry '' as used herein shall include the dyeing, 
finishing, bleaching, mercerizing, weighting, printing, or other proc- 
essing of rayon, silk, or of any mixture of the same, or of any 
mixture of goods containing primarily silk or rayon, either in the 
piece or in the yarn, in the United States, but shall not include con- 
cerns (1) engaged in the weaving of cotton and/or rayon and whose 
operations are required to be under the Cotton Textile Code, or 
(2) primarily equipped for, and primarily engaged in, finishing 
cotton woven fabrics who may also be engaged in finishing rayon 
and/or other synthetic fibre fabrics, and shall not include concerns, 
not members of the Institute, vvho may be engaged in the dyeing, 
finishing, bleaching, mercerizing, or other processing of rayon and/or 
other S3aithetic fibres in the yarn. Provided that any concern which 
is a member of the Institute and engaged in the processing of rayon 
and/or other synthetic fibres in the yarn, shall, as to such yarn 
processing, be governed as to competitive practices by the supple- 
mentary Code of Fair Practice, to be approved for the textile 
processing industry. 

2. The term " rayon " as used herein shall include any synthetic 
fibre made from cellulose. All provisions relating to rayon shall 
apply to synthetic textiles made from cellulose acetate or any other 
substance. 

3. The term " concern " as used herein is defined to mean any one 
now or hereafter engaged or engaging in this industry as individual, 
partnership, firm, corporation, or otherwise (and shall include 
therein proprietors, partners, officers, or directors when lawfully 
representing a concern). 

4. The term " employee " as used herein shall include anyone 
engaged in the industry in any capacity, receiving compensation 
for services, irrespective of the nature or method of payment of such 
compensation. 

5. The term "' productive employee " as used herein shall include 
all emploj^ees except engineers, electricians, machinists, firemen, office 
staff, maintenance and transportation crews, and watchmen. 

(314) 



315 

6. The term " productive machinery *' as used herein shall include 
only print machines, weighting units, dyeing equipment, and screen 
printing tables. 

7. The term '" service " and/or '" process " and/or " operations " 
as used herein shall include dyeing, finishing, mercerizing, bleach- 
ing, weighting, printing, engraving (when done by ^niy concern in 
its own plants), or any other work, labor, or services done by any 
concern. 

8. The term '' Institute " as used herein shall mean the Institute 
of Dyers and Printers, a corporation not for pecuniary profit, organ- 
ized and existing under the laws of the State of Nevv' Jersey. 

9. The term '* Board of Trustees " as used herein shall mean the 
Board of Trustees of the Institute. 

10. The term " member of the industry " as used herein includes 
any concern as hereinbefore defined. 

11. The term " signatory of the Code " as used herein means any 
member of the industry who shall voluntarily agree in writing as 
prescribed in Article VIII, Section 3. 

12. The term " By-LaAvs *' as used herein shall mean the by-laws of 
the Institute. 

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

Article III — Hours 

1. No employee other than executives, supervisors, and representa- 
tives shall be permitted to work more than 40 hours, in any one 
week, except as hereinafter provided. 

2. The hours of labor of engineers, electricians, machinists, fire- 
men, maintenance and transportation crews, and watchmen, shall not 
be more than 48 hours in any one week, except in cases of emergency. 
Any emergency time in any plant shall be reported monthly to the 
Code Authority. 

3. The maximum hours of labor for office staff in the Industry shall 
be an average of 40 hours per week in each period of six months; 
provided, however, that no office employee shall work more than 48 
hours in any one week, except in cases of emergency. Any emerg- 
ency time in any office shall be reported monthly to the Code 
Authority. 

4. No productive emploA^ee shall be permitted to work more than 
40 hours in any one week of plant operation as herein defined, nor 
more than 8 hours in any one day, provided that where productive 
employees are engaged in continuous chemical processes such as boil- 
off, bleaching, weighting, dyeing, or drying, where goods will be 
jeopardized by interruption, such employees may be required to 
work an additional 2 hours in any one day; provided further, that 
no productive employee shall work more than 48 hours in any week 
of plant operation, as herein defined. 

5. No concern shall operate any productive machinery more than 
80 hours nor any plant in the Industry more than 96 hours in any 
week, beginning Monday at 6 : 00 A.M., and ending Saturday at 6 : 00 



316 

A.M., except for the activities of office staff, engineers, electricians, 
machinists, firemen, maintenance, and watchmen. No plant shall 
be operated, except for the aforesaid activities, between Saturday 
at 6:00 AM., and Monday at G:00 A.M., nor on legal holidays. 
During such periods of the year as the Code Authority shall, from 
time to time, determine as less-than-peak periods, the Code Authority 
may, subject to the right of appeal to the Administrator, fix a lesser 
number of hours per week for plant operation, and during such 
periods no concern shall, except for the activities hereinbefore re- 
cited, operate any plant for more than the number of hours per 
week so fixed by the Code Authority. The Code Authority may 
modify the provisions hereof for plant operation in any Aveek in 
which a legal holiday occurs, so as to permit employees to make up 
the number of hours lost by reason of such legal holiday. 

6. Because of the seasonal character of the velvet business and 
notwithstanding tlie above sections, productive machinery used solely 
for the processing of velvet may be operated not to exceed 120 hours 
in any one week, between Monday, C A.M., to Saturday, 6 A.M., 
during an aggregate of six months in any calendar year, provided 
that prior notice be given to the Code Authority of the commence- 
ment and termination of the three-shift operation. These hours 
shall not be curtailed by the Code Authority during the calendar 
years 1934 and 1935, and subsequently only upon notice to the plants 
affected, with the consent of the Administrator. Only such concerns 
which have heretofore or which shall within ten (10) days after 
the approval of this Code register with the Institute or the Code 
Authority as processors of velvet shall be entitled to the benefits of 
this Section, except with the approval of the Administrator. 

Article IV — Wages 

1. No male employee IS years of age and over shall receive less 
than 45^ per hour, nor shall any female employee (engaged in tasks 
not heretofore performed by a male in the plant in which such 
female may be employed) receive less than 35^ per hour. Male 
employees under the age of 18 years shall receive not less than 80% 
of the prescribed minimum. 

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. In no event shall any employer pay any employee a wage rate 
which will yield a less wage for a work week of 40 hours than such 
employee was receiving for the same class of work for a longer 
week prior to June 26, 1933. 

Article V — General Labor Provisions 

1. No person under 16 years of age shall be employed in the in- 
dustry, nor anyone under 18 years of age at operations or occupations 
hazardous in nature or detrimental to health. 

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 



317 

labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective baro;aining or other mutual aid or protection. 

3. Ko employee and no one seeking employment shall be required 
as ji 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 ^Yith the maximum hours of labor, 
minimum rates of pay, ancf 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 emploj-ers regu- 
lating tlie age of employees, wages, hours of work, or health, fire, 
or general working conditions than under this Code. 

C. Employers shall not reclassify emploj'ees or duties of occui^a- 
tions performed by employees so asto defeat the purposes of the Act. 

Article VI — Administration 

1. Further to effectuate the policies of the Act, the Board of 
Trustees, to be elected annually by the members of the Institute and 
bv other signatories to this Code as hereinafter prescribed in Article 
VIII, is hereby designated, together with not more than three persons 
without vote and without cost to the Industry to be named bv the 
Administrator, as a Code Authorit3% for the Industry. 

2. The Code Authority shall be the representative of the Industry 
in the administration and enforcement of this Code and shall have, 
in addition to the specific powers herein conferred, all general powers 
necessary to such administration and enforcement, including the 
right to delegate authority to committees of its own members or 
otherwise, subject at all times to the right of the Administrator to 
veto any action taken by it. Representatives designated by the 
Administrator shall be given full opportunity to participate at all 
times in the activities of the Code Authority or committees thereof, 
as well as those of the Board of Trustees and the executive com- 
mittees of the several divisions of the Institute. 

3. The Code Authority may from time to time present to the Ad- 
ministrator recommendations based upon conditions in the Industry, 
as they may develop, which will tend to effectuate the operation of 
the' provisions of this Code and the policies of the Act. Such recom- 
mendations, upon approval by the Administrator, shall have the 
same force and effect as any other provisions of this Code. 

4. The Code Authority shall cooperate with the Administrator in 
making investigations as to the changing and observance of any 
of the provisions of this Code at its own instance or on complaint 
of any member of the Industry and shall report its findings and 
recommendations to the Administrator. 

5. With a view to keeping the President informed as to the ob- 
servance or nonobservance of this Code of Fair Competition, and 
as to whether the Industry is taking appropriate steps to effectuate 
the declared policy of the Act, each member of the Industry will 
furnish duly certified reports to the Code Authority hereinbefore 
provided, or to such agency or agencies as the Code Authority may 



318 

designate. Thess reports shall be in substance and in such form 
as the Code Authority may require, subject to the approval of the 
Administrator. The reports furnished as aforementioned shall be 
deemed confidential and shall not be disclosed except as part of gen- 
eral statistics for the Industry or a general part thereof, except where 
a violation of the Code is suspected and the Code Authority has 
authorized the disclosure in connection with an investigation there- 
of. Due to the seasonal nature of velvet processing, production fig- 
ures shall be required from processors of velvet annually and not 
otherwise. 

6. Every member of the Industry shall furnish to any government 
agency or agencies, such statistical information as the Administra- 
tor or the Code Authority may, from time to time, deem necessary 
for the purposes recited in Section 3 (a) of the Act, and any reports 
and other information collected and compiled by the Code Au- 
thority, as heretofore provided, shall be transmitted to such govern- 
ment agencies as the Administrator may direct. 

7. The Institute is hereby constituted the agency of the Code Au- 
thority (a) to secure, distribute, and exchange statistical data and 
information; (b) to conduct investigations under its direction; and 
(c) to take such action from time to time as the Code Authority may 
direct. 

Article VII — Po^vers of the Code Authority 

The Code Authority shall have the folloAving duties and powers, 
to the extent permitted by the Act, subject to the right of the Admin- 
istrator to veto any action taken by it. 

1. To designate representatives to act on a joint committee with 
representatives of any other code authority of a related industry, 
having reciprocal provisions in its code, to consider questions re- 
garded by either code authority as of common concern with reference 
to the effectuation of the policies of llie Act (including question-s as 
to whether the operations of a given concern come within the juris- 
diction of one of the other of the respective codes), and to take such 
action as they may jointly agree to be appropriate, subject to the 
veto of the Administrator. 

2. To empower the Institute to secure, distribute, and exchange 
price information, v>^ithout, however, disclosing the name of the 
customer. 

Upon the request or direction of the Code Authority, all concerns 
shall promptly forward and file with the Institute such statistical 
data and information, which in its judgment may be necessary ade- 
quately to inform all concerns regarding market conditions, and also 
any such data and information as may be required for the supervision 
and operation of the Code of Ethics. 

3. To require each concern to file with the Institute a list of the 
prices thereafter to be quoted for each of the several services rendered 
by it. Concerns shall not quote or make prices other than those filed 
within ten days after filing with the Institute a modified list of 
prices. Any quotation of prices in violation of the provisions hereof 
shall be deemed a violation of this Code unless the Code Authority 
or the price committee thereof shall in advance have approved such 



319 

quotations. As, when, and if any concern shall file a modified list 
of prices, any other concern may file for itself a new list of prices to 
become effective simultaneously with the modified list first filed, 

4. To establish or participate in the establishment of a Central 
Adjustment Bureau for the aJjustment of all service claims by 
customers against concerns engaged in this Industr}', and upon the 
establishment of such Bureau all claims shall be adjusted by said 
Bureau and not otherwise, except with the consent of the Code 
Authority, provided that no concern shall be deprived hereb}' of the 
right to sue in its own name on any clami. 

5. To install or cause to be installed throughout the Industry in 
the plant, books and records of each concern a uniform system or 
cost accounting which will result in obtaining by each concern and 
by the Institute the costs of production exclusive of any allowance 
for depreciation or obsolescence. 

No concern shall .sell below cost (exclusive of depreciation and 
obsolescence) as determined by the Code Authority and approved by 
the Administrator pursuant to the operation of the uniform system 
of cost accounting when installed and/or operating without the prior 
consent of the Code Authority. Prior to the installation of such 
cost-accounting system no member of the Industry shall sell below 
cost, as may be determined by the Code Authority, subject to the 
approval of the Administrator. 

U. To adopt a uniform contract Avhich shall be the standard form 
of contract for services rendered by the Industry, subject only to 
such changes therein as may from time to time be authorized by the 
Code Authority. Other standard forms of contract appropriate to 
respective divisions of the Industry may be adopted by these divi- 
sions, subject to the appro^■al of the Code Authority. 

7. To appoint a committee to determine the classification of colors 
for dyeing and patterns for printing. Such classification shall be 
the standards for the Industry and shall be observed by all concerns 
engaged in the Industry. 

8. To adopt, subject to the aj^proval of the Administrator, a Code 
of Ethics to eliminate unfair competitive practices. Such Code of 
Ethics, when adopted and approved, shall have the same force and 
effect as any other provisions of this Code. Such Code of Ethics 
shall provide that concerns, members of the Institute, engaged in the 
processing of rayon and/or other synthetic fibres in the yarn, shall, 
as to such 3'arn processing, be governed as to competitive practices 
by the supplementary Code of I^'air Practice, to be approved for the 
Textile Processing Industry. 

9. To define, construe, or interpret the provisions of this Code. 

Article VIII 

1. Any concern in the Industry which accepts its share of the cost 
and responsibility as well as the benefits of such participation, may 
become a member of the Institute. No initiation or entrance fee shall 
be charged, but there shall be dues levied on such basis as may, 
from time to time, be fixed by the Board of Trustees thereof, subject 
to the veto of the Administrator. 



320 

Within the Institute, or Division thereof, each member concern, 
which shall have paid its dues in accordance with the Bylaws, 
shall be entitled to vote as follows : 

The average jDay rolls for the three calendar or fiscal years of 
each member, as hxcd by the Bylaws, shall be divided into multi- 
ples of $10,000, and each member shall have one vote for each such 
full multiple. If any member has an annual average pay roll of 
less than $10,000 he shall, nevertheless, be entitled to one vote. At 
any election of Trustees, voting shall be cumulative, as defined by 
the Statutes of New Jersey, provided that not more than one Trustee 
^hall be elected from any one concern. If any member has an annual 
average pay roll of more than $1,000,000 he shall, nevertheless, be 
entitled to only one hundred votes. 

2. (a) Divisions composed of concerns interested in the processing 
or finishing of particular fabrics, or in a particular line of work, 
shall be organized within the Institute with the approval, or by the 
direction, of the Board of Trustees. Each such division shall, subject 
to the approval of said Board of Trustees, concern itself only with 
that branch of the Industry delegated to it. A concern may be a 
member of more than one Division and vote in each (such vote to 
be allocated among such Divisions as may be permitted by the 
Bylaws). 

(b) Each Division, for the purpose of administering the provisions 
of this Code, to secure adherence thereto, and otherwise to carry out 
within the Division the policies of the Act, shall, subject to the ap- 
proval of the Board of Trustees, be governed by an executive com- 
mittee of five. Four members of each executive committee shall be 
elected by the Division membership, as provided in Section 1 of this 
Article. The fifth member of each executive committee shall be 
appointed by the Board of Trustees; provided, however, that such 
apjiointee, or his concern, shall be a member of the Division, and that 
not more than one member of the committee shall be elected or 
appointed from any one concern. The Secretary of the Institute 
shall be the pernument secretary of each executive committee. 

(c) If a Division fails to perform its obligations as provided here- 
under, the Board of Trustees shall provide for the administration of 
this Code as if said Board of Trustees were the executive committee 
of the Division concerned, and upon the passage of a resolution by 
the Board of Trustees taking over such functions, the executive com- 
mittee of said Division shall for all purj)oses cease to exist. Any 
such action of the Board of Trustees shall be subject to appeal to 
the Administrator. 

(d) In the event that with respect to the determination of costs 
a clifference of opinion shall arise between an executive committee 
and the Board of Trustees, such difference of opinion shall be de- 
termined by arbitration as provided in the Bylaws by three arbi- 
trators to be selected as follows: One arbitrator shall be selected 
by the executive committee, one arbitrator shall be selected by 
the Board of Trustees and the third arbitrator shall be selected 
by such original arbitrators, or, in default thereof, by the President 
of the American Arbitration Association. 

If two or more division executive committees shall differ with 
each other and/or with the Board of Trustees as to any matter em- 



321 

braced in tho precedinf^ two i):ir;i<rraplis, or tlio next succeeding 
paragraph of this article, such ditFerence of opinion shall be deter- 
mined by one arbitrator to be selected by the lioard of Trustees 
jointly with the division executive committees involved in such dif- 
ference of opinion. In the event of the failure to agree within five 
days uj)()n such arbitrator, the same shall be appointed by the 
President of the American Arbitration Association. 

(e) In the event that any amendment of this Article is proposed 
by the Board of Trustees, the same shall be submitted to each of 
the division executive committees, and if any division executive 
committee fails to concur therein, the propriety of such proposed 
amendment shall be determined by arbitration, as provided in the 
By-laws bj"^ one arbitrator to be selected by the Board of Trustees 
jointly with the division executive committees. In the event of the 
failure to agree upon such arbitrator, the same shall be aj^pointed 
by the President of the American Arbitration Association. 

(f) In order to prevent any inequalities that may arise in the 
functioning of this Section 2 and to effectuate the policies of Title I 
of the Act, the administration of each of the provisions hereof shall 
be subject to the veto of the Administrator. 

3. Members of the Industry who are complying with the require- 
ments of the C(xle, and agree in writing either individually, or 
through trade associations of which they are members to abide by 
the i-equirenients of the Code, and to pay their pro rata share of the 
expense of administration thereof, shall be entitled to a vote in the 
election of the Board of Trustees, and participate in the nomination 
of candidates for election, on the same basis as a member concern, 
and to the benefits of the activities of the Code Authority and to 
make use of the N.R.A. Code insigna. Such nominations and elec- 
tions shall be conducted under the supervision of the Code Authority 
so as to avoid any discrimination among members of the Industry. 

4. For the purpose of administering this Code, the Code Authority, 
subject to the veto of the Administrator, is authorized to charge 
each concern a percentage of the gross volume of business done by 
each such concern during the preceding calendar or fiscal year; and 
during the operation of this Code to make such further charges as 
may be found necessary. In the case of concerns which process 
exclusively the product of their own looms, the amount to be charged 
each concern shall be determined equitably by its pay roll in con- 
nection W'itli operations under this Code. 

5. Such funds collected for the administration of this Code shall 
be deposited by the treasurer of the Institute in a special account 
and used only for defraying the expenses of administration thereof, 
for the reimbursement of the Institute and for such expenses as may 
hereafter be incurred in complying with conditions of this Code. 

Article IX 

If, in the case of complaint and/or dispute on any matter affecting 
the administration of the Code, including a dispute as to the accuracy 
of any information furnished pursuant to the provisions of this 
Code, a concern shall fail or refuse to cooperate with Code Authority, 
the Administrator, on the request of the Code Authority, may ap- 



322 

point a certified public accountant Avho shall have the power to view 
the relevant books of accounts, records, and files of any concern. 
No such information shall be revealed to anyone but the members of 
the staff of the Administration and/or the Administrator. If such 
investigation defined as aforesaid shall result in a determination that 
a signatory of the Code was not complying with the provisions of 
this Code, the cost of such investigation shall be borne and paid for 
by such member of the Industry. 

Article X 

No concern engaged in the printing of any fabrics in this Industry 
shall prepare, engrave, or print, or submit to an engraver or printer 
for engraving or printing, any pattern or design which shall not 
previously have been registered i:i the United States Patent Office 
or in any other office or bureau approved by the Board of Trustees. 

The Board of Trustees is hereby empowered by resolutions to be 
adopted, to adopt all administrative measures necessary to effectuate 
this provision and define and limit the same. 

Article XI 

1. Each concern shall register ivith the Code Authority an inven- 
tory of its productive machinery as defined in the Code in place as of 
December 1, 1933, or then under contract but not installed, such 
inventory to be duly certified to as to its completeness and correctness. 

2. On and after January 1, 1934, each concern shall file a report 
monthly with the Institute, setting forth any installation of addi- 
tional productive machinery (new or second-hand) as defined in this 
Code installed by it, and specifying the extent to which such instal- 
lation is for the replacement of similar productive machinery and an 
explanation of the same, all duly certified. 

3. After the effective date hereof, each concern, prior to the instal- 
lation of productive machinery as defined in this Code not thereto- 
fore contracted for, except for such replacement, shall file applica- 
tion with the Institute for transmission through the Code Authority 
to the Administrator, stating the circumstances of and the reasons 
for such installation and shall secure a certificate from the Admin- 
istrator that such installation will be consistent with effectuating the 
policy of Title I of the Act during the period of the emergency. 

4. The Code Authority shall examine into such application for 
such certificate and the facts as to the circumstances of and the 
reasons for such proposed installation and shall transmit to the Ad- 
ministrator such application with any statement submitted by the 
applicant, together with its report of such examination of the facts 
and with its recommendation as to the granting or withholding by 
the Administrator of such certificate to such applicant. Action 
by the Administrator inconsistent with such recommendation shall 
be taken only after notice to the Code Authority. 

5. Nothing in Sections 3 and 4 of this Article shall apply to 
velvet processing machinery during the calendar year 1934, and there- 
after the Code Authority may make such sections apj^licable only 
after due notice to all concerns affected. All reports called for by 



323 

this Article shall be deemed confidential and shall not be disclosed 
except us part of <2:eneral statistics for the industry or a general 
part thereof or, when necessary, in connection with an application 
under Section 8, hereof, except b,y order of the Administrator. 

Article XII — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of subsection (b) of Section 10 of the Act, from time to time 
to cancel or modify any order, approval, license, rule, or regulation 
issued under Title I of said Act and specifically, but without limita- 
tion, to the right of the President to cancel or modify his approval 
of this Code or any conditions imposed by him upon his approval 
thereof, but the right of the Institute, or any member of the Industry, 
to object thereto is reserved. 

2. Such of the provisions of this Code as are not required to be 
included therein by the Act may, upon the application of or notice 
to the Institute and with the approval of the President be modified or 
eliminated in such manner as may be indicated by the needs of the 
public, by changes in circumstances, or by experience; all the pro- 
visions of this Code, unless so modified or eliminated, shall remain in 
effect until the expiration date of Title I of the Act. 

3. In order to enable the Industry to conduct its operations subject 
to the provisions of this Code, and with those dealing w^ith the Indus- 
try and otherwise to effectuate the purpose of Title I of the Act, sup- 
plementary provisions of this Code or additional codes may be sub- 
mitted from time to time for the approval of the President and/or 
this Code may be amended or modified with the approval of the 
President. 

Article XIII — Monopolies 

Xo provision of this Code shall be so applied as to permit monopo- 
lies or monopolistic practices, or to eliminate, oppress, or discrimi- 
nate against small enterprises. 

Article XIV — Effectr^ Date 

This Code shall become effective immediately on its approval by 
the President. 



Approved Code No. 172. 
Registry No. 230-07. 



O 



Approved Code No, 173 
CODE OF FAIR COMPETITION 

FOR THE 

INDUSTRY ENGAGED IN THE SMELTING AND 
REFINING OF SECONDARY METALS INTO BRASS 
AND BRONZE ALLOYS IN INGOT FORM 

As Approved on December 21, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Industry Engaged in the Smelting and 
Refining of Secondary Metals into Brass and Bronze Alloys in Ingot 
Form, and hearings having been held thereon and the Administrator 
having rendered his report containing an analysis of the said Code 
of Fair Competition together with his recommendations and" findings 
with respect thereto, and the Administrator having found that the 
said Code of Fair Competition complies in all respects with the per- 
tinent provisions of Title I of said Act and that the requirements of 
clauses (1) and (2) of subsection (a) of Section 3 of the said Act 
have been met : 

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

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

AdTninistrator. 

The White House, 

Decanber 21, 1933. 

28291°- 296-43 33 (325) 



December 16, 1933. 
The President, 

The White House. 
Sir : This is a report on the Code of Fair Competition proposed 
for the Industry Engaged In The Smelting and Refining Or Second- 
ary Metals Into Brass And Bronze Alloys In Ingot Form, and on 
the hearing conducted thereon in Washington, D.C.j on October 13, 
1933, in accordance with the provisions of the National Industrial 
Recovery Act. 

RESUME OF code AS TO WAGES AND HOURS 

The Code provides a standard work week of 40 hours, except 
during peak periods, which are limited to 6 weeks in any G months. 
No employee shall work more than G days or more than 48 hours in 
any one week, or more than 10 hours in any one day. 

These provisions are applicable except in cases of emergency, and 
to employees engaged in executive, supervisory, or technical capaci- 
ties receiving $35.00 or more per week, and to outside salesmen. 

Watchmen may be employed not to exceed 56 hours, and not more 
than 6 days in anv one week. 

Employees working in excess of 40 hours per week shall be paid 
not less than one and one half times their normal rate. 

While the uncertainties of production processes in the Industry 
make it difficult always to assure an 8-hour day, the Industry recog- 
nizes the principle of the 8-hour day, and the Code contains a 
statement to that effect. 

A minimum wage of 350 per hour is provided, with a rate of $15.00 
per w^eek for office employees, except that a limited number of 
office boys and girls may be paid at the rate of $12.00 per week. 
Learners, who may be so classified for a period of 3 months, may be 
paid not less than 80% of the minimum wage. 

Child labor is prohibited, and no person under 18 years of age 
shall be emploj^ed in any hazardous occupation. 

GENERAL STATEMENT 

The smelting and refining of secondary metals into brass and 
bronze alloys in ingot form is a distinct industry, with most of its 
plants located in the district east of the Mississippi River and north 
of the Ohio River. A number of concerns smelt, refine, manufacture 
or otherwise process other nonferrous metals and alloys, using sec- 
ondary metals principally as raw materials. All of the product of 
the Industry is cast into ingots or pigs weighing from 20 to 35 
pounds each, which are used for recasting into finished castings by 
the general foundry trade. 

During the past twenty years the Industry has enjoyed a remark- 
able development along scientific lines. The result of a survey made 

(326) 



327 

by the Non-Ferrous Ingot Metal Institute in 1929, to determine the 
nature and number of the specifications which had been requisitioned 
from its members during the preceding year, indicated that over GOO 
separate specifications had been served by the members of the Insti- 
tute during that year. In the last three years the Non-Ferrous 
Ingot Metal Institute, in cooperation with the American Society for 
Testing Materials, has succeeded in reducing its standard specifica- 
tions for brass and bronze all(n\s in ingot form to ai:)proximately 30. 

The furnaces used in the Industry vary in production capacity 
from 500 to 100,000 pounds. Most of the types used by the larger 
units are operated continuously and were formerly operated on a 
2-shift program over campaigns of 2 to 6 weeks, requiring long hours 
of work. A change to the 3-shift program resulted in an increase 
of about 40% in the number of men used. 

During 1929 there were about 1,180 employees in the Industry. 
In 1932 the number of employees decreased to a low of 360, but 
under the President's Re-Employment Agreement, this number rose 
again to over 900. Prior to the President's Re-Employment Agree- 
ment the hours for labor averaged from 54 to 60 per w^eek, and it is 
estimated that under the Code the number of emploj'^ees will be 
greater than the figure shown for 1929. 

The Industry states that its minimum wage had dropped to 240 
per hour and estimates that the increased minimum, the readjust- 
ment of wages above the minimum, and the increase in employment 
under the Code will greatly increase the buying power of emploj^ees 
in the Industry. 

The marketing provisions of the proposed Code have for their 
purpose the elimination of unfair trade provisions, and it is believed 
that their adoption will aid in the orderly marketing of the products 
of the Industry. 

I believe that the Code as proposed is fair to Industry and to 
Labor and in accordance with the intent and purpose of the National 
Industry Recovery Act. 

The Deputy Administrator finds that: 

(a) The Code as recommended complies in all resj^ects 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 
Industry Engaged in the Smelting and Refining of Secondary Metals 
into Brass and Bronze Alloys in Ingot Form ; and that 

(c) The Code as recommended is not designed to promote monopo- 
lies or to eliminate of oppress small enterj^rises, 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 Industry Engaged in the Smelting 
and Refining of Secondary Metals into Brass and Bronze Alloys in 
Ingot Form. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 



CODE OF FAIR COMPETITION 

FOR THE 

INDUSTRY ENGAGED IN THE SMELTING AND REFINING 
OF SECONDARY METALS INTO BRASS AND BRONZE 
ALLOYS IN INGOT FORM 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is established as a Code of Fair Competi- 
tion for the Industry Engaged in the Smelting and Refining of 
Secondary Metals into Brass and Bronze Alloys in Ingot Form, 
and upon approval by the President its provisions shall be the stand- 
ards of fair competition for such industry and shall be binding 
upon every member thereof. 

Article II — Definitions 

The term " industry " as used herein includes all producers engaged 
in the smelting and refining of secondary metals into brass and 
bronze alloys in ingot form. 

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 an employer or 
on his own b«half. 

The term " employee " as used herein includes any and all per- 
sons engaged in the industry, however compensated, excepting a 
member of the industry. 

The terms " President ", "Act ", and "Administrator " as used 
herein mean, respectively, the President of the United States, Title 
I of the National Industrial Recovery Act, and the Administrator 
for Industrial Recovery. 

Article III — Working Hours 

Section 1, The standard workweek of the industry shall not exceed 
4.0 hours per week, except during peak periods, which are limited 
to 6 weeks in any C months. Provided, however, that no employee 
shall be employed more than G days or more than 48 hours in any 
one week, or more than 10 hours in any one day. 

Sec. 2. The above hours shall not apply to any emploj^ees in the 
case of emergencies where the safety of men or the protection or 
preservation of property necessitates longer hours; nor shall they 
apply to employees in executive, supervisory, or technical capacities 
receiving $35.00 or more per week, or outside salesmen ; nor to watch- 

(328) 



J 



329 

men who may be employed not to exceed 5G hours in any one week 
and not more than 6 days in any one week. 

Sec. 3. Employees working in excess of 40 hours per week sliall be 
l^aid not less tlian one and one half times their normal rate. 

Sec. 4. The industry recognizes the desirability and accepts the 
principle of the 8-hour working daj^ for labor and, insofar as it rea- 
sonably can, the industry will endeavor to employ its labor on that 
basis. 

Sec. 5. If any employer of labor in this industry is also an em- 
ployer of labor in any other industry, the provisions of this Code 
shall apply to and affect only that part of his business which is in- 
cluded in the business of smelting and refining of secondary metals 
into brass and bronze alloys in ingot form. 

Sec. 6. No employer shall knowingly permit any employee to work 
for any time Avhich, when totaled with that already performed with 
another employer or employers in this industry, exceeds the maximum 
permitted herein. 

Article IV — Wages 

Section 1. On and after the effective date, office employees fhall 
be paid not less than at the rate of $15.00 per week, except that office 
boys and girls may be paid at the rate of $12.00 per week. The 
number of such office boys and girls shall not exceed 5% of the total 
number of office emploj^ees, except that each office may have one 
such office boy or girl. 

Sec. 2. The minimum wage per hour which shall be paid to other 
employees in the industry shall be at the rate of 35^ per hour, except 
as herein otherwise provided. 

Sec. 3. This article establishes a minimum rate of pay for any 
pay period which shall apply, irrespective of whether an employee 
IS actually compensated on a time rate, piecework, or other basis. 

Sec. 4. Learners shall be paid not less than 80% of the minimum 
wage, and the total number of such learners shall not exceed 5% 
of the number of employees of such employer. The learning period 
shall not exceed 3 months. 

Sec. 5. Equitable adjustments shall be made of the wages of 
employees now receiving more than the minimum wage as herein 
provided. Such equitable adjustments shall mean that differentials 
existing prior to the formation of this Code shall be maintained 
for all employees. Within 30 days each member shall report to 
the Administrator through the Code Authority all such readjust- 
ments. 

Sec. 6. Female employees performing substantially the same work 
as male employees shall receive the same rate of pay as male employees. 

Article V — General Labor Provisions 

Section 1. Child Labor. — No person under 16 years of age shall 
be employed in the industr5^ No person under 18 years of age shall 
be employed at operations or occupations which are hazardous in 
nature or dangerous to health. The Code Authority shall submit to 
the Administrator before May 1, 1934, 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 



330 

or permit duly signed 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, Provisions from the act. — In compliance with Section 7 (a) 
of the Act it is provided : 

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

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

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

Sec. 3. Reclassification of employees. — 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. 

Sec. 4. Standards for Safety and Health. — Every employer shall 
make reasonable provision for the safety and health of his employees 
at the place and during the hours of their employment. 

Sec. 5. 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. 

Sec. 6. State Laws. — No provision in this Code shall supersede 
any State or Federal law which imposes on employers more stringent 
requirements 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. 7. Posting. — All employers shall post complete copies of the 
labor provisions of this Code in conspicuous places accessible to all 
employees. 

Article VI — Organization, Poavers, and Duties of Code 

Authority 

Section 1. There shall forthwith be constituted a Code Authority 
consisting of 5 persons, 4 of whom shall be selected by the Non- 
Ferrous Ingot Metal Institute and one of whom shall be selected by 
the Associate members of said Institute. 

Sec. 2. In addition to the membership as above provided, there 
may be not to exceed three members, without vote and without ex- 
pense to the industry, to be appointed by the Administrator. 

Sec. 3. Each Trade or Industrial Association directly or in- 
directly participating in the selection or activities of the Code 
Authority shall (1) impose no inequitable restrictions on member- 
ship and (2) submit to the Administrator true copies of its Articles 
of Association, By-Laws, regulations, and any amendments Avhen 
made thereto, together with such other information as to member- 
ship, organization, and activities as the Administrator may deem 
necessary to effectuate the purposes of the Act. 



331 

Sec. 4. 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. 5. 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 accepting 
their reasonable share of the cost of its preparation and administra- 
tion. Such reasonable share of the expenses of preparation and 
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 facts as m.ay be deemed equitable. 

Sec. G. 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 any- 
one 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. 7. The Code Authoritj^ 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 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 By-Laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To approve recommendations for the exceptions to the 
marketing provisions of this Code. 

(d) To obtain from members of the industry such information 
and reports as are required for the administration of the Code and 
to f)rovide for submission by members of such information and re- 
ports as the Administrator may deem necessary for the purposes re- 
cited in Section 3 (a) of the Act, which information and reports 
shall be submitted by members to such Administrative and/or gov- 
ernment 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 individual reports shall be disclosed to any other 
member of the industry or to any other party except to such gov- 
ernmental agencies as may be directed by the Administrator. 

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



332 

(f) To make recommendations to the Administrator for the co- 
ordination of the administration of this Code with such other codes, 
if any, as may be related to the industry. 

(g) To secure from members of the industry participating in and 
sharing the benefits of the Code Authority an equitable and propor- 
tionate payment of the reasonable expenses of maintaining the Code 
Authority and its activities. 

(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. 

(i) To employ such agents and assistants as may be necessary to 
perform the duties herein prescribed. 

Article VII — Marketing and Trade Practice Kules 

(a) Each member ©f the industry shall file with the Code Author- 
ity the prices at which he is offering his products for sale; which 
prices shall not be less than his current cost as determined by a 
uniform system of cost accounting as provided for in Section (k) of 
this Article; and provided, that any member of the industry may 
file prices below his current cost so determined in order to meet the 
competition of any other member of the industry who has filed prices 
in accordance with this Section. 

(b) In determining current cost, the cost of raw materials used in 
the manufactured product shall be computed on the basis of the re- 
placement cost thereof prevailing as of the date of sale. 

(c) Any member of the industry desiring to change the price or 
prices of his products shall notify the Code Authority of all ch!ino;es 
to be made sufficiently in advance thereof so that the Code Authority 
will receive such notice at least one clay previous to such change. 

(d) Published prices shall include terms of payment, length of 
bookings or contracts, and F.O.B. point and such other provisions as 
may be necessary to fully inform the trade of all conditions of sale. 

(e) Terms of sale shall be fully stated and strictly adhered to 
and invoice shall show same. 

(f) There shall be no discrimination between customers. Differ- 
ence in price based upon quantity shall not constitute discrimination. 

(g) Prices and discounts shall be openly and publicly announced, 
(h) A uniform sales contract shall be established and used by 

the industry, subject to the approval of the Administrator. 

(i) All contracts shall be equally binding upon both parties and 
are not subject to repudiation. 

(j) The following are unfair trade practices, and a violation of 
any one or more of them constitutes a violation of this Code : 

i. Selling below openly and publicly announced prices and terms 
as provided for in Sections (a) and (c) of this Article. 

2. Secret allowances or secret rebates of any kind. 

3. False dating of contracts or billings. 

4. Allowances by any name or of any nature which are not justified 
by the facts and are made in collusion with the buyer for the pur- 
pose or effect of defeating the provisions of this Code. 



333 

5. Storage of products of the industry in consumers' warehouses 
or sales on consignment to consumers, except under circumstances to 
be defined by the Code Authority, where peculiar circumstances of the 
industry make the practice advisable. 

G. Special services or privileges to certain purchasers when not 
extended to all purchasers under like terms and conditions, 

7. Making false or misleading statements about competitors' prod- 
ucts, or regarding the character, management, or financial standing 
of a competitor. 

8. False or misleading advertising, mislabeling, or misbranding. 

9. The adoption of brands (either in design or name) which so 
closely approximate the brands or trade-marks of a competitor as 
to deceive or confuse a buyer by similarity of appearance or brand. 

10. Inducing or attempting to induce a breach or a cancelation 
of a contract between a competitor and his customer. 

11. Maliciously enticing away the employees of a competitor Vv'ith 
the purpose and intent of unduly hampering, injuring, and embar- 
rassing a competitor in his business. Nothing herein shall prevent 
any employee from offering his services to a competitor or prevent 
any member from emploj^ing an employee of another member where 
the initiative in such change of employment comes solely from the 
employee. 

12. Giving or permitting to be given, or directly offering to give, 
anything of value for the purpose of influencing or rewarding the 
action of any emploj^ee, agent, or representative of another in rela- 
tion to the business of the employer of such employee, the principal 
of such agent or the represented party, without the knowledge of 
such employer, principal, or party. Commercial bribery provisions 
shall not be construed to prohibit free and general distribution of 
articles commonly used for advertising except so far as such articles 
are actually used for commercial bribery as hereinabove defined, 

13. Guaranty against decline in price. 

14. Payment of brokerage in excess of the usual and customary 
commission with the purpose or effect of defeating the provisions of 
this Code. 

(k) Every member of the industry shall use a cost accounting sys- 
tem which conforms to the principles of and is at least as detailed 
and complete as the uniform method of costing to be prescribed by 
the Code Authority and approved by the Administrator. 

Article VIII — Export Trade 

No provision of this Code relating to prices or terms of selling, 
shipping or marketing, shall apply to export trade or sales or ship- 
ments for export trade of unfabricatecl products of this industry. 

Article IX — Modification 

(a) This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of subsection (b) of Section 10 of the Act, from time to time to 
cancel or modify any order, approval, license, rule, or regulation 
issued under said Act. 



334 

(b) This Code, except as to provisions required by the Act, may 
be modified on the basis of experience or changes in circumstances, 
such modifications to be based upon apphcation to the Administrator 
and such notice and hearing as he shall specify, and to become 
effective on approval of the President. 

Article X — MoNoroLiES 

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 XI — Effective Date 

This Code shall become effective 10 days after its approval by the 
President. 

Approved Code No. 173. 
Registry No. 1218-1-05. 

o 



Approved Code No. 174 
CODE OF FAIR COMPETITION 

FOR THE 

RUBBER TIRE MANUFACTURING INDUSTRY 

As Approved on December 21, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Rubber Tire Manufacturing Industry, 
and hearings liaving 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 Administration 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 sub-section (a) of Section 3 of the said Act have 
been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations and 
findings of the Administrator and do order that the said Code 
of Fair Competition be and it is hereby approved, upon condition 
that, without in any way limiting the effect of Section 10 (b) of 
Title I of the National Industrial Recovery Act, or of Section 1 of 
Article IX of said Code, I specifically retain the right to cancel 
this approval of said Code, or to modify said Code in such manner 
as may be required to prevent any unfair trade practices within the 
Rubber Tire Manufacturing Industry which may become evident in 
any investigations by the Federal Trade Commission or in the ap- 
plication 01 said Code; and 

28702° 206-48 33 (335) 



336 

The A-dministrator is hereby directed to conduct such investi- 
gations as may be necessary to advise me fully within ninety days 
concerning the existence or development of any unfair trade practices 
within said Industry, utilizing the aid of the Federal Trade Com- 
mission in the expeditious determination of any complaints con- 
cerning such unfair trade practices. 

FRANKLIN D. ROOSEVELT. 
Approval recommended: 
Hugh S. Johjsson, 

A dminist rotor. 

The White House, 

Deceniber U, 1933, 



I 



The Prssident, December 20, 1938. 

The White Hcnise. 
Sir : The proposed Code of Fair Competition for the Rubber Tire 
Manufacturing Industry was submitted to the Administrator on 
July 31, 1933. It was reconsidered by the Industry and a revised 
code was submitted on October 3, 1933, by the Rubber Manufacturers 
Association, representing approximately 85% of the members of the 
Industry and volume of production. The Hearing was conducted in 
Washington on October 20, 1933. The Code was revised during the 
recess of this Hearing and is submitted in its present form for ap- 
proval. Every person who requested an appearance was properly 
heard in accordance with statutory and regulatory requirements. 

HOURS or WORK 

Under this Code, factory employees are limited to 36 hours per 
week averaged over a calendar year, with a restriction of 8 hours per 
day and 42 hours in any one week. Overtime in excess of 36 hours 
per week shall be paid at the rate of time and one third. 

Maintenance crews, engineers, firemen, shipping crews, and tire 
testers are limited to 40 hours per week and 8 hours per day, except 
in cases of emergency. Overtime in excess of 40 hours per week or 
8 hours per day shall be paid for at the rate of time and one third. 
Watchmen are limited to 84 hours in any two-week period with ono 
day off in seven. 

Accounting, clerical, office, service, sales, or other employees (except 
outside salesmen) receiving $35.00 per week or less, are limited to an 
average of 40 hours a week over the period of one month, but in no 
case shall they work more than 48 hours in any one week. Salaried 
employees receiving more than $35.00 per week and outside salesmen 
are not restricted to any maximum hours. 

WAGES 

This Code provides for a minimum wage of $0.40 per hour unless 
the rate for the same class of work on July 15, 1929, was less than 
$0.40, in which case the rate per hour shall not be less than the rate 
paid on July 15, 1929. In no event shall the rate per hour be less 
than $0.35. Apprentices, during a six weeks' apprenticeship, may be 
paid not less than 80% of these minimum rates. Such apprentices 
shall not constitute more than five percent of the total employees in 
any one establishment. 

Minimums for salaried employees range from $12.00 per week in 
towns of less than 2,500 population to $15.00 per week in cities of 
500,000. Clerical apprentices, office boys and girls may be paid not 
less than 80% of these minimums but may not constitute more than 

(337) 



338 

five percent of the total office employees in any one establishment. 
Provision is made for superannuated and disabled employees; for 
equalization of rates of pay for men and women performing the 
same work; for equitable adjustments of pay schedules of factory 
employees above the minimum and for the jDosting of the labor pro- 
visions of the Code. 

OTHER PROVISIONS OF THE CODE 

The Code provides that the Code Authority shall undertake a 
study of costs in the Industry and submit recommendations to the 
Administrator within sixty days from tiie approval of the Code, for 
the incorporation of an adequate cost recovery provision in the Code. 
The Industry believes that the problems presented by the existence 
of widely varying selling programs and the use of many channels of 
distribution make such an inquiry necessary. Final adoption of any 
provisions regarding selling below cost is specifically subject to the 
approval of tlie Administrator. 

The Industry has adopted twenty-seven trade practice provisions 
in this Code, designed to eliminate various forms of unfair com- 
petition. The Code further provides that the Code Authoritj'^ shall 
make recommendations to the Administrator at a later date, in 
regard to the adoption of a standard warranty, the status of time or 
mileage contracts, the simplification of the number of lines of 
tires, the establishment of a committee to coordinate this Code with 
that of the Retail Rubber Tire and Battery Trade and the adoption 
of an open price system for the Industry. 

ECONOMIC EFFECT OF CODE 

The following tabulation shows the effect of the depression on 
the Industry : 



Sales — 

Production (casings). . 

Wage earners 

Number of compimies 



$675, 000, 000 

69, 000, 000 

74, 700 

62 



1932 



$300, 000, 000 

40, 000, 000 

38, 800 

35 



Decrease 



55% 
42% 
48% 
44% 



The Industry has already made the wages and hours provisions of 
this Code effective in a large degree, as is indicated by the following 
table : 



1933 

May - 

June 

July..- 

August 

September 

October 



Production 
casings 



Employ- 
ment wage 
earners 



5, 200, 000 
0,100,000 
5, 700, 000 
5, 000, 000 
4, 000, 000 
3, 400, 000 



■38, 545 
44, 14S 

49, 680 
52, 962 
52, 850 

50, 400 



Average 

hours 
per week 



Average 
hourly 
earnings 



$0. 585 
.579 
.620 
.654 
.681 



339 

October production was only 65% of the production in May. 
Nevertheless employment increased over 30% and average hourly 
earnings increased approximately 17%. Average hours per week 
have declined due to seasonal decline in production, which invariably 
occurs during the months of October, November, and December. 

No other Industry can derive greater benefits from the Act. This 
Code in no sense embodies a complete solution of all the problems 
of the Industry. It does represent a real beginning. The reclama- 
tion of this Industry from the destructive competition which exists 
must be a continuing task over a long period of time. 

FINDINGS 

The Administrator finds that: 

1. This Code complies in all respects with the pertinent phrases 
of Title I of the Act, including but without limitation Subsection 
(a) of Section 7, and Subsection (b) of Section 10 thereof. 

2. The Rubber Manufacturers' Association, Incorporated, is truly 
representative of the Rubber Tire Manufacturing Industry and its 
bylaws contain no inequitable restrictions on membership. 

3. The Code is not designed to promote monopolies or to eliminate 
or oppress small enterprises and will not operate to discriminate 
against them. The Code will tend to effectuate the policy of Title I 
01 the National Industrial Recovery Act. 

It is recommended, tJierefore, that this Code be approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator, 



CODE OF FAIR COMPETITION 

FOn THE 

RUBBER TIRE MANUFACTURING INDUSTRY 

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 
Rubber Tire Manufacturing Industry, and upon approval by the 
President, its provisions shall be the standards of fair competition for 
this Industry, and shall be binding upon every member thereof. 

Article I 

A. DEFINITIONS 

Section 1. The term " Rubber Tire Manufacturing Industry " or 
" Industry ", as used herein, shall mean the manufacture for sale in 
the continental United States (including Alaska) and sale at whole- 
sale by manufacturers or subsidiaries or affiliates of the same of solid 
or pneumatic rubber tires and/or pneumatic rubber tubes, together 
with such related branches or divisions as may from time to time be 
included under the provisions of this Code by the President, after 
such notice and hearing as he mav prescribe. 

Sec. 2. The term " member of the Industry " or " member " as used 
herein includes, but without limitation, any individual, partnership, 
association, corporation, or other form of enterprise engaged in the 
manufacture or both manufacture and sale at wholesale of any prod- 
ucts of the Industry, or any subsidiary or affiliate of the same engaged 
in the sale at wholesale of any products of the Industry. 

Sec. 3. The term "member of the Code" as used herein, includes 
any member of the Industry who shall expressly signify assent to 
this Code. 

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 "Association " as used herein, shall mean the 
Rubber Manufacturers Association, Incorporated, a corporation or- 
ganized under the laws of the State of Connecticut and having its 
principal office at 250 West 57th Street, New York, New York. 

Sec. 6. The term " dealer " as used herein, shall mean anyone, 
whether or not a member has a financial interest therein, who pur- 
chases a member's brand of tires and/or tubes, from a member or 
jobber, under contract for sale, either absolute, conditional, or on 
consignment, and who in turn resells to other than employees or 
affiliated companies, at least 75% of the tires or tubes so purchased. 
Company retail stores, whether wholly or partly owned, shall be 
classified as dealers. 

(340) 



341 

Sec. 7. The term " jobber " as used herein, shall mean anyone who 
sells at least 75% of his total volume of tires and/or tubes through 
or to dealers for resale to consumers, whether or not such dealers are 
owned or affiliated with or controlled by such jobber, and who per- 
forms the services of a jobber such as maintaining a stock, selling, 
shipping, billing, and carrying accounts receivable. 

Sec. 8. The term " warehouse dealer " as used herein, shall mean 
a dealer who acts as a shipping agent for a member of the Industry 
with sales, credits, and collections handled by that member. 

Sec. 9. The term " the President " as used herein, shall mean the 
President of the United States. 

Sec. 10. The term " the Administrator " as used herein, shall mean 
the Administrator appointed under Title I of the National Industrial 
Recovery Act. 

Sec. 11. The term " the Act ", as used herein, shall mean the Na- 
tional Industrial Recovery Act. 

Sec. 12. Population for the purposes of this Code shall be deter- 
mined by reference to the latest Federal Census. 

Article II 

A. ADMINISTRATION AND ORGANIZATION 

Section 1. To further effectuate the policies of the Act, a Tire 
Code Authority (herein referred to as the Code Authority) is hereby 
set up for the administration of this Code. 

Sec. 2. The Code Authority shall consist of eight persons who 
shall be selected by the Industry by a fair method of selection, ac- 
cording to such rules as it may determine. The Administrator, in 
his discretion, may appoint not more than three additional members, 
without vote, to represent the Administrator, without expense to the 
Industry or Association. No two of the members of the Code Au- 
thority or their alternates shall be affiliated with any single member 
of the Industry. 

(a) 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 thereafter 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 modification 
in the method of selection of the Code Authority. 

(b) The President of the Association and its General Manager 
shall act as ex-officio members of the Code Authority with no voting 
power. The General Manager of the Association shall act as Chair- 
man of the Code Authority. 

(c) One alternate shall be selected for each member of the Code 
Authority, with full power to vote in the absence of his principal. 
Provided that no two alternates shall be affiliated with any single 
member of the Industry. 

(d) Should any matter come before the Code Authority which 
specifically involves acts, conduct, or the interest of a member of the 
Industry with which any member of the Code Authority is asso- 
ciated or employed, such member of the Code Authority shall be 

28702 ° 296-48 33 2 



342 

disq^ualifiecl to act in sudi matter. The designated alternate shall 
act in place of the disqualified member of the Code Authority. 

(e) Meetings shall be called by the Chairman either at his dis- 
cretion, or on the suggestion of any three members of the Code 
Authority. The Code Authority shall determine its own rules of 
procedure. 

Sec. 3. The Code Authority shall have the duties and powers 
herein provided subject to the right of the Administrator, on review, 
to disapprove any action taken by the Code Authority. 

(a) The Code Authority shall make 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 report its 
findings and recommendations to the Administrator. 

(b) The Code Authority shall study the trade practice ]jro- 
visions incorporated in this Code, and the operation thereof and 
shall make such recommendations to the Administrator from time 
to time which it considers desirable, for modification or addition 
thereto, provided such recommendations shall have been approved 
by members of the Code as provided in Article X. Upon approval 
by the Administrator, after such hearing as he may prescribe, such 
recommendations shall become a part of this Code and have full 
force and effect as provisions hereof. 

(c) The Code Authority may at its discretion present recom- 
mendations to tlie Administrator, based on conditions in the In- 
dustry, as they may develop from time to time, provided such recom- 
mendations shall have been approved by members of the Code 
as provided in Article X. Such recommendations shall be designed 
to facilitate the operation of the provisions of this Code and the 
policy of the Act. 

(d) The Code Authority may require reports from members of 
the Industry in respect to hours of labor, wages, conditions of em- 
l^loyment, number of employees, plant capacity, production, orders, 
shipments, inventories, and any other matters pertinent to this Code 
in order that the President may be kept informed with respect to 
the observance and performance of the Code. 

(e) The Code Authority may, at its discretion, set up any or all 
of the following committees or any other committees, if their 
existence will further effectuate the policies of the Act, viz : 

Accounting Industrial Relations 

Complaints and Grievances Statistical 

Fair Practices 

(f ) The Code Authority may set up a committee on imports whose 
duty it shall be to investigate and inform the President as to the 
importation of competitive articles into the United States in sub- 
stantial quantities or increasing ratio to domestic production, on 
such terms or under such conditions as to render ineffective or to 
seriously endanger the maintenance of this Code as provided in 
Section 3 (e) of the Act. The Committee shall make such reports 
of its findings to the Code Authority who shall inform the President 
through the proper channels. 

Sec. 4. The Association is hereby designated as the agency for 
the collection of statistics, data, reports, and information under the 



I 



343 

Code, provided that no inequitable restrictions upon membership 
therein shall at an}- time be imposed. 

(a) Every member of the Industry shall pre})are and file with 
the Association at such times and in such manner and form as the 
Code Authority may require, statistics of plant capacity, produc- 
tion, sales, orders received, inventories, wage rates, hours of Avork, 
and such other data or information as the Administrator may, from 
time to time, require. Such reports and/or records may be either 
sworn or unsworn as required. 

(b) In addition to information required to be submitted to the 
Code Authority, every member of the Industry shall furnish directly 
to governmental agencies such statistical information as the Admin- 
istrator may deem necessary for the purposes recited in Section 3 (a) 
of the Act. 

(c) Except as otherwise provided in the Act, all such statistics, 
data, and information filed in accordance with this Article shall be 
confidential, and the reports and records from an}^ individual mem- 
ber of the Industry shall only be revealed to the Administrator or 
other governmental authority, to the extent necessary for the admin- 
istration and enforcement of the provisions of this Code. 

(d) If the Association shall have reason to believe that any re- 
ports submitted by a member are inaccurate, such reports may be 
verified by a disinterested and impartial agency designated by the 
Code Authorit3% and for such purpose such agency shall have 
access to any and all relevant books and records of such member. 

(e) Any refusal or persistent or deliberate neglect by any member 
of the Industry to file or furnish information required under this 
Article shall constitute an unfair trade practice and a violation of 
this Code. 

Sec. 5. Each member of the Code shall be entitled to participate in 
the activities of the Association in connection with the administration 
of the Code. Any other member of the Industr}^ may become en- 
titled to participate by becoming a member of the Code. Each 
member of the Code shall bear an equitable share of the cost of 
maintenance of the Code Authority, either by becoming a member of 
the Association or by paying to the Association a sum equal to its 
reasonable share of the expenses incurred in the administration of 
this Code, as determined by the Code Authority, subject to review 
by the Administrator, 

Article III 

A. INDUSTRIAL-RELATIONS POLICIES 

Section 1. In compliance Avith Section 7 (a) of the Act it is 
provided : 

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

(b) That no emphn^ee and no one seeking employment shall be 
required as a condition of employment to join an}^ company union 



344 

or to refrain from joining, organizing, or assisting a labor organi- 
zation of his OAvn choosing ; and 

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

Sec. 2. No person under IG years of age shall be employed in the 
Industry. No person under 18 years of age shall be employed on 
any milling or calendering operations or any other operations where 
there may be recognized hazards connected with the job or operation. 

Sec. 3. No provision in this Code shall supersede any State or 
Federal law which imposes more stringent requirements on em- 
ployers as to age of employees, wages, hours of work, or as to safety, 
health, sanitary, or general Avorking conditions, or insurance, or fire 
protection, than are imposed by this Code. 

Article IV 

A. HOUKS 

Section 1. Except as provided in Section 2, no factory employee 
sliall work or be permitted to work, in excess of an average of 36 
hours in any one week, averaged over a calendar year, nor more 
than 8 hours in any 24:-hour period. Provided that no such em- 
ployee shall work or be peraiitted to work more than 42 hours in 
any one week. For all hours worked in excess of 36 hours per week, 
overtime shall be paid at the rate of time and one third. It is the 
intent that the hours worked by employees under this Section shall 
be consecutive, except that reasonable provision may be made for 
eating period. 

Sec. 2. Maintenance crews, engineers, firemen, shipping crews, and 
tire testers shall not work or be permitted to work in excess of 40 
jiours in any one week nor more than 8 hours in any 24-hour period. 
Provided, however, that this limitation of hours shall not apply in 
cases of emergency, but in such cases all hours worked in excess of 
40 hours in any one week or 8 hours in any 24-hour period shall be 
paid for at the rate of time and one third. 

(a) Watchmen shall not work or be permitted to work more than 
84 hours in any two weeks' period, provided that such employees 
shall have one day off in seven. 

Sec. 3. Accounting, clerical, office, service, sales, or other em- 
ployees (excepting outside salesmen) shall not work, or be permitted 
to work, in excess of an average of 40 hours a week over the period 
of a month, nor more than 48 hours in any one week. 

Sec. 4. The maximum hours fixed in Sections 1, 2, and 3 shall 
not apply to salaried employees in any managerial, executive, cleri- 
cal, supervisory, or technical capacity receiving more than $35.00 
per week, nor to any outside salesmen. 

Sec. 5. No employee shall Avork, or be permitted to work, for a 
total number of hours in excess of the number of hours prescribed 
for each week and day, whether employed by one or more employers; 
provided, however, that if any employee works for more than one 
employer for a total number of hours in excess of such maximum 



345 

without the knowledge or connivance of any one of his employers, 
such employer shall not be deemed to have violated this section. 

Sec. G. No employee shall be classified in any of the foregoing 
exempted classes unless he performs functions identical with those 
performed by employees thus classified on June IG, 1933. 

B. WAGES 

Section 1. Except as herein below provided, no employee shall be 
paid in any pay period less than at the rate of forty cents ($0.40) 
per hour. Provided, however, that where the hourly rate for the 
same or similar class of work on July 15, 1929, was less than forty ^ 
cents ($0.40) per hour, no employee shall be paid at less than the 
rate per hour paid on July 15, 1929, but in no event shall the rat© 
per hour be less than $0.35. 

(a) Apprentices, during a six weeks' apprenticeship may be paid 
not less than eighty percent of the above specified minimum rates. 
Such apprentices shall be understood as persons having no previous 
experience or employment on similar work in the Industry and shall 
not constitute more than five (5) per cent of the total employees 
covered by this Section, in the employ of any member. 

Sec. 2. No salaried employee (except outside salesmen, office girls 
and boys, and clerical apprentices) shall be paid less than at the 
rate of : 

$15.00 per week Cities over 500,000 population or in tlie imme- 
diate trade area of such a city. 

$14.50 per weelj Cities between 250,000 and 500,000 population 

or in tbe immediate trade area of sucli a city. 

$14.00 per week Cities between 2,500 and under 250,000 popula- 
tion or in the immediate trade area of such 
a city. 

$12.00 per week Towns of less than 2,500 population. 

(a) Clerical apprentices during a six months' apprenticeship and 
office boys and girls may be paid not less than 80% of the above 
minimums. Such excepted office employees shall not exceed 5% of 
the total number of employees covered by Section 2, in the employ 
of any member. 

Sec. 3. The provisions in Article IV-B shall not apply to any 
employee partially incapacitated through age, injury, or disease; 
provided, however, that such employee shall receive not less than 
$0.25 per hour. Each member of the Industry shall report to the 
Association monthly the number and names of employees so 
classified. 

Sec. 4. Female employees performing the same work as male 
employees in manufacturing operations shall receive the same rates 
of pay as male emploj^ees. 

Sec. 5. Article IV-B establishes a minimum rate of pay which 
shall apply, whether an employee is actually compensated on a time 
rate, piecework, or other basis. 

Sec. C. Equitable adjustments in all pay schedules of factory 
employees above the minimum shall be made within thirty (30) days 
after the approval of this Code b}' any members who have not here- 



346 

tofore made such adjustments, and the first monthly reports of 
wages required to be filed under this Code shall contain full infor- 
mation as to all wage increases made since May 1, 1933. 

C. POSTING OF LABOR PROVISIONS 

Section 1, Every member of the Industry shall post in conspicu- 
ous places in all departments of his establishment or establishments 
copies of Articles III and IV of this Code. 

Article V 

A. COST AND MARKET STABILIZATION 

Section 1. The Code Authority shall immediately upon approval 
of this Code proceed to a study of a market stabilization plan based 
on cost control. 

(a) A standard uniform system of accounting, for the guidance of 
each member of the Industry, shall be developed under the direction 
of the Code Authority. 

(b) The Code Authority shall designate, with the approval of the 
Administrator, a disinterested and impartial agency, to procure and 
compile the data required to complete the study and to act as the 
agency through which such compiled data shall be transmitted to the 
Code Authority, in order that all cost data of members of the Indus- 
try shall be kept confidential. Each member of the Industry shall 
furnish such agency with such reports as may be designated by the 
Code Authority. 

(c) The Code Authority shall confer witli the Administrator from 
time to time in the course of formulating its recommendations as to 
the plan for such market stabilization herein above proposed. The 
Code Authority shall make an initial report concerning progress in 
the formulation of such a plan within thirty (30) days after the ap- 
proval of this Code. Final recommendation shall be submitted to 
the Administrator within sixty (60) days from date of approval of 
this Code. 

Sec. 2. After such market stabilization plan based on cost control 
shall have received approval by the Industry and by the Administra- 
tor, such plan shall become a part of this Code. Violation of any 
provision of such plan shall be considered an unfair trade practice 
and subject to the penalties of the Act. 

Article VI 

A. TRADE PRACTICES 

Section 1. No member shall use advertising (whether printed, 
radio, display, or of any other nature) or other representation which 
is inaccurate in any material particular or which refers inaccurately 
to competitors or their commodities, prices, values, credit terms, 
policies, or services. No member shall, in any way, misrepresent any 
commodity (including its use, trade mark, grade, quality, quantity, 
origin, size, specifications) or his credit terms, values, policies, serv- 
ices, or the nature or form of the business conducted. 



I 



347 

Seo. 2. No member shall use advertising or selling methods or 
credit terms which tend to deceive or mislead a customer or prospec- 
tive customer. 

Sec. 3. No member shall publish or circularize unjustified or un- 
warranted threats of legal proceedings which tend to or have the 
effect of harassing competitors or intimidating their customers. 

Sec. 4. No member snail secretly offer or make any paymant or 
allowance of a rebate, refund, commission, credit, unearned discount 
or excess allowance, whether in the form of money or otherwise, for 
the purpose of influencing a sale ; nor shall a member secretly extend 
to any customer any special service or privilege not extended to all 
customers of the same class. 

Sec. 5. No member shall give, permit to be given, or offer to give 
anything of value for the purpose of influencing or rewarding the 
action of any employee or agent of another, in relation to the busi- 
ness of the employer of such employee, or the principal of such 
agent without the Imowledge of such employer or principal. 

Sec. 6. No member shall, directly or indirectly, give or permit to 
be given or offer to give, money or anything of value, to any cus- 
tomer or prospective customer, or to anyone else upon the instigation 
and for the benefit of any customer or prospective customer, to induce 
such customer or prospective customer to purchase tires or tubes 
from such members. 

Sec. 7. No member shall secure confidential information concern- 
ing the business of a competitor by a false or misleading statement 
or representation, by a false impersonation of one in authority, by 
bribery, or by any other unfair method. 

Sec. 8. No member shall unfairly attempt to induce the breach of 
an existing contract between a competitor and his employee or cus- 
tomer or source of supply ; nor shall any such member unfairly inter- 
fere with or obstruct the performance of such contractual duties or 
services. 

Sec. 9. No member shall brand or mark or pack any commodity 
in any manner which tends to deceive or mislead purchasers with re- 
gpect to the brand, grade, quality, quantity, origin, size, or specifica- 
tion of such commodity. 

Sec. 10. After February 1, 1934, no member shall manufacture any 
automobile, truck, and/or bus pneumatic tires Vv'hich do not clearly 
indicate on the side wall of the casing and on the label the number 
of cord plies from bead to bead, built into the casing. Breaker strips 
shall not be construed as plies for side wall or label marking. Plies 
extending from the heel of one bead to the heel of the other bead, if 
of substantially the same construction as other plies in the tire, shall 
not be construed as breaker strips. The Code Authority may desig- 
nate such markings for purposes of this Section. 

Sec. 11. The unauthorized use by any member either in writing 
or oral form, of trade marks, trade names, or slogans identical with 
or in imitation of, those already in use by any other member, shall 
be prohibited. 

Sec. 12. No member shall withhold from or insert into any invoice 
anything which would make the invoice a false record, wholly or in 
part, of the transaction to which it refers, or make any arrangement 
which contemplates payment or settlement contrary to the face of the 



348 

invoice. No member shall postdate or predate orders, invoices, or 
contracts. This Section shall not prohibit the granting of a bonus 
in accordance with any member's regular program. 

Sec. 13. Within ten days after the effective date of this Code, each 
member shall file V7ith the Association all Consumers' Preferred 
Wholesale and State Lists. The Consumers' Lists shall be the lists 
from which dealer and/or jobber disccunts shall be applicable and 
shall apply to the sale of tires and/or tubes to owners of less than 
five vehicles. The Preferred Wholesale Lists shall appW to com- 
mercial operators of five or more vehicles. The State Lists shall 
apply to all State, County, and municipal accounts. These lists shall 
be effective immediately upon such filing. 

(a) Thereafter, no member shall change such lists without filing 
new lists with the Association, stating the effective date of such 
changes; provided that if such change involves a reduction such 
effective date shall be not less than ten days from the date of filing 
of the new lists. 

(b) The Association shall, promptly after receipt of such revised 
lists, notify all members affected. Such affected members may there- 
upon file with the Association revisions of their lists which, if filed 
prior to the date when the revised lists first filed shall go into effect, 
may become effective on said date. 

(c) No member shall fill ut old prices orders received or showing 
postmark after 12 : 01 A.M. of the day upon which his new lists be- 
come effective. No member shall give any information to any class 
of trade regarding price changes prior to the date of filing thereof 
with the Association. 

Sec. 14. No member shall solicit the reinstatement of any order 
previously cancelled, at other than his own current prices. 

Sec. 15. Effective immediately upon the signing of this Code by 
the President, no member shall sell or offer for sale any tires or 
tubes which have been, or should be, properly classified as " seconds ", 
except to employees lor their own personal use and not for resale 
purposes. No member shall sell " firsts " as " seconds " under any 
circumstances. 

Sec. 16. No member shall sell or dispose of any tire,s or tubes 
of obsolete, discontinued design or change-overs at special prices 
without first 

(a) Notifying the Code Authority two (2) weeks in advance of 
the number of tires or tubes to be so disposed of, with the reasons 
therefor. 
' (b) Stating discount below the regular established price at which 
they are to be sold. 

(c) Branding such tires, other than change-overs, so to be sold 
with a suitable design that shall be designated by the Code Author- 
ity. 

(d) Obtaining the approval of the Code Authority for such dis- 
posal. If the Code Authority denies approval or fails to notify such 
member of its decision within ten (10) days, such member may ap- 
peal to the Administrator who shall have x^ower to grant approval. 
The Code Authority shall advise all members of the Industry simul- 
taneously of such authorizations. 



349 

Sec. 17. For the purposes of Sections 15 and 16 herein, " seconds ", 
obsolete and discontinued designs and change-overs shall bo defined 
as follows: 

(a) " Seconds " shall be defined as all tires and/or tubes which 
have become defective in the course of manufacture. 

(b) Obsolete and discontinued designs shall be defined as all 
tires and/or tubes which have actually been discontinued from pro- 
duction. 

(c) Change-over tires shall be defined as original equipment tires 
which have been removed from new vehicles and which are practi- 
cally new or show only slight wear. 

Seo. 18. No member shall extend dealers' prices to persons other 
than dealers as herein defined. If the application of this definition 
in any particular case should work an unjust hardship on any member 
of the Industry or customer, such member or customer may appeal 
to the Code Authority which shall have power to make such excep- 
tion as justice may require. 

Seo. 19. No member shall extend jobbers' prices to dealers as 
herein defined. If the application of this section in any particular 
case should work an unjust hardship on any member of the industry 
or customer, such member or customer may appeal to the Code Au- 
thority which shall have power to make sucli exception as justice 
may require. 

Sec. 20. No member shall take over from any dealer or jobber, 
either by purchase or exchange, any tires and/or tubes of other 
members. 

Sec. 21. No member shall offer or give any tires or tubes, or sell 
any such tires or tubes at reduced prices, for test purposes without 
prior approval by the Code Authority. 

Sec. 22. No member shall offer to a dealer the discounts and/or 
allowances given to a warehouse dealer unless the dealer shall be 
required to perform the services of a warehouse dealer. 

Sec. 23. The Code Authority shall within thirty (30) days after 
the effective date, obtain from the Tire Committee of the Tire and 
Eim Association standard specifications for the Industry covering 
cross sectional diameters, anti-skid depths, total tread tliicknesses 
and such other specifications as in their judgment will standardize 
manufacturing tolerances within the Industry. When these stand- 
ards shall have been submitted to the Industry and approved in ac- 
cordance with Article X, the Association shall send a copy of such 
standards to every member of the Industry. Such standards shall 
become effective ninety (90) days thereafter and any deviation in 
the manufacture of any tires beyond the maximum so established, 
shall constitute an unfair trade practice unless such tires which ex- 
ceed these specifications shall be sold at a proportionately higher price 
which truly reflects their higher cost. The Code Authority upon 
request of any member shall investigate and rule upon any disputed 
cases. Should the application of this Section in any particular case 
work an unjust hardship on any member of the Industry, such mem- 
ber may appeal to the Administrator who shall have power to grant 
such exception as justice may require. 



350 

Sec. 24. Effective immediately upon the signing of this Code by 
the President no member shall accept written or verbal orders, agree- 
ments, or contracts for the sale of tires or tubes to any commercial 
and/or national account, the effect of which is to guarantee prices 
on future deliveries. 

Sec. 25. Ejffective immediately upon the signing of this Code by 
the President no member shall use terms of payment to national or 
commercial accounts exceeding the customary 10th proximo terms or 
renew or extend existing orders, agreements, or contracts as a subter- 
fuge, in violation of Section 24. For purposes of interpretation of 
Section 24 orders delivered within thirty (30) days after date of 
order may be construed as " immediate delivery " ; deliveries after 
such thirty (30) days' period shall be construed as " future delivery " 
and billed at prices in effect on delivery date. 

Sec. 26. No member shall offer for sale a rebuilt and/or retreaded 
tire without marking on the sidewall thereof a suitable design to be 
approved by the Code Authority, 

Sec. 27. Violation of any of the provisions of Article VI shall be 
considered an unfair trade practice and subject to the penalties of the 
Act. 

Article VII 

A. complaints and appeal 

Section 1. Any interested party shall have the right of com- 
plaint to the Code Authority and prompt hearing and decision 
thereon in respect to any matter arising under this Code. Such 
complaint must be filed in writing with tne Code Authority within 
a reasonable period of time after the complaint arises. 

Sec. 2. Any interested party shall have the right of appeal to the 
Administrator under such procedure as he shall prescribe in respect 
to any decision, rule, regulation, order, finding, or omission to act by 
the Code Authority. 

Sec. 8. The Code Authority shall be specifically charged with the 
responsibility for proceeding against any member of the Industry 
"who shall violate any provisions of this Code. 

Article VIII 

A. MONOPOLIES 

Section 1. No provision of this Code shall be interpreted or 
applied in such a manner as to permit monopolies, or monopolistic 
practices, permit or encourage unfair competition; or eliminate, 
oppress, or discriminate against small enterprises. 

Article IX 

a. REVISIONS AND MODIFICATIONS 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 



351 

provisions of Subsection (b) of Section 10 of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, 
approval, license, rule, or regulation issued under Title I of said Act 
and specifically, but without limitation, to the right of the President 
to cancel or modify his approval of this Code or any conditions 
imposed by him upon his approval thereof. 

Sec. 2. Such of the provisions of this Code as are not required by 
the National Industrial Recovery Act to be included herein, may, 
with the approval of the President, be modified or eliminated as 
changed circumstances or experiences may indicate. 

Sec. 3. By presenting this Code the Industry and others assenting 
thereto are not consenting to any modification thereof; and each 
reserves the right to object independently or jointly to any modified 
Code. 

Sec. 4. If any member of the Industry is likewise engaged in part, 
in an}' other industry or trade, this Code shall apply onlj'^ to such of 
the activities of said member as are comprehended within the Rubber 
Tire Manufacturing Industry. 

Sec. 5. The provisions of this Code now or hereafter adopted 
with regard to prices, discounts, deductions, allowances, extras, 
commissions, or methods and/or terms of sale shall not apply to 
direct export sales. Upon application to the Code Authority, any 
member of the Industry may secure exemption from such pro- 
visions of this Code in regard to sales in the course of export 
(i.e., sales destined ultimately for export) or sales of materials 
used in the manufacture of products for export. The term " ex- 
port " shall include, in addition to shipments to foreign countries, 
shipments to territories and possessions of the United States except 
Alaska. 

Article X 

A. ALTERATIONS AND AMENDMENTS 

Section. 1. Any addition, alteration, or amendment to this Code 
may be proposed by any member of the Code, and after receiving 
the approval of fifty-one i^ercent of the members of the Code, 
providing such members represent at least fift3^-one percent in vol- 
ume, shall be presented through the Code Authority to the Admin- 
istrator for api^roval after such notice and hearing as he may 
prescribe. Provided, however, that any addition, alteration, or 
amendment which has received the approval of either a majority in 
number or in volume of the members of the Code, may, after due 
notice to all members of the Code, also be transmitted to the Admin- 
istrator for his consideration. 

Article XI 

A. FURTHER RECOMMENDATIONS BY THE CODE AUTHORITY 

Section 1. Within sixtv days after the effective date of this Code, 
the Code Authority shall, after such negotiations as may be neces- 



852 

sary, make recommendations to the Administrator for the equitable 
adoptif)n of a uniform Standard Warranty by all' members of the 
Industry and all tire retailers, jobbers, wholesalers, and special brand 
distributors. In the interim, no member shall change his present 
form of warranty. 

Sec. 2. Since the leasing of tires to taxicab and bus companies on a 
time or mileage basis is an established practice in the Industry, the 
Code Authority shall make a complete study of this practice and 
submit recommendations to the Administrator within ninety days 
from the approval of this Code for the elimination of any unfair 
practices which may exist in this field. 

Sec. 3. Upon completion of the cost control plan outlined in 
Article V, the Code Authority shall make recommendations to the 
Administrator for the simplification of the present number of lines 
of tires. 

Sec. 4. The Code Authority shall proceed with a survey of the 
productive capacity of the Inclustry, and submit recommendations to 
the Administrator not later than March 1, 1934, concerning the 
desirability of limiting the creation of additional productive capacity 
in the Industry. 

Sec. 5. The Code Authority pledges itself to undertake imme- 
diately a study of seasonal fluctuations in production and make recom- 
mendations to the Industry designed to afford a greater stability of 
employment. 

Sec. 6. The Code Authority shall, in cooperation with the Code 
Authority to be set up for the Ketail Rubber Tire and Battery Trade, 
submit recommendations to the Administrator for the establishment 
of a joint committee for the coordination of the Code for this In- 
dustry with that of the Retail Rubber Tire and Battery Trade, with 
a view to joint consideration and proper determination of any 
common problems which relate to the distribution of tires and tubes. 

Sec. 7. Within ninety days after the approval of this Code, the 
Code Authority with the approval of the members of the Code, 
in accordance with Article X, shall make recommendations to the 
Administrator regarding the establishment of a complete open-price 
system for the Industry. In the meantime, every member of the 
Industry, within thirty days after the approval of this Code, shall 
file with the Administrator, or his designated agent, for his ex- 
clusive information, in such manner and form as he may request, 
all prices, discounts, bonuses, terms^ and conditions of sale to all 
customers, in order that the Administrator may be fully informed 
as to conditions in the Industry. 

(a) Thereafter, no member shall sell any tires or tubes at prices 
lower or at discounts or bonuses greater or on terms or conditions 
more favorable than the prices, discounts, bonuses, terms, and condi- ■ 
tions filed as aforesaid, unless he shall nrst file revised prices, dis- ^ 
counts, bonuses, terms, and conditions with the Administrator to 
take effect in not less than ten days from date of filing. 



353 
Article XII 

A. EFFECTI^'E DATE AND TERMINATION 

Section 1. This Code shall become effective, except as otherwise 
specified herein, on the first Monday after it shall have been ap- 
proved by the President of the United States. It shall continue in 
effect until June 16, 1935, or until such time prior thereto when the 
President shall, by proclamation, or the Congress shall, by joint 
resolution, declare that the emergency recognized by Section 1 of 
the National Industrial Recovery Act has ended. 

Approved Code No. 174. 
Registry No. 807-1-06. 

O 



Approved Code No. 175 
CODE OF FAIR COMPETITION 

FOR THE 

MEDIUM AND LOW PRICED JEWELRY 

MANUFACTURING INDUSTRY 

As Approved on December 23, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June IC, 1933, for my approval of a Code of 
Fair Competition for the Medium and Low Priced Jewelry Manu- 
facturing Industry, and hearings having been held thereon and the 
Administrator having rendered his report containing an analysis of 
the said Code of Fair Competition together with his recommenda- 
tions and findings with respect thereto, and the Administrator having 
found that the said Code of Fair Competition complies in all respects 
with the pertinent provisions of Title I of said Act and that the 
requirementvS 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 tlie 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 : 

28293° 29G^l 33 (355) 



356 

That the application of the provision of snb-section (b), Section 1, 
Article III, Avhich provides for the payment of time and one third 
for all hours worked by any employee in excess of forty (40) per 
week, shall be stayed until March 1, 1934, at which time such provi- 
sion shall become etTective and have the same force and effect as any 
other provision of the Code. 

FRANKLIN D. ROOSEVELT. 
Approval recommended : 
Hugh S. Johnson, 

A dniinistrator. 

The White House, 

Decemher 23, 1933. 



December 13, 1933. 

The President, 

The White House. 

Sir : A Public Hearing on the Code of Fair Competition for the 
Medium and Low Priced Jewelry Manufacturing Industry, sub- 
mitted by the Council of Jewelry and Allied Industries, was con- 
ducted in Washington on the 10th and 11th of October 1933, in 
accordance with the provisions of the National Industrial Recovery 
Act. This Association claims to represent sixty percent (60%) of 
the Industry. 

Upon petition of the Industry, and advice of the Labor Advisory 
Board, a provision has been included in the Executive Order stay- 
ing the application of subsection (b) of Section 1 of Article III, 
which provides for the payment of time and one third for all hours 
worked by any employee in excess of 40 hours per week, for the 
period between the effective date of this Code and March 1, 1934, in 
order to allow them to take care of goods contracted for for this 
season. 

The maximum hours permitted under this Code are forty (40) 
per week for factory, mechanical workers, or artisans, with a twenty 
percent (20%) tolerance in seasonal periods. Toolmakers, hub and 
die cutters may be emploA'ed a maximum of forty-eight (48) hours 
per week, ])ut this type of employee shall not exceed five percent 
(5%) of the total number of employees. Provision for the pay- 
ment of overtime is made. All other employees, exclusive of ship- 
ping and packing crews, shall not be employed for more than forty 
(40) hours per week. Shipping and packing crews may be worked 
forty-four (44) hours per Aveek, but must be paid time and one third 
for all hours in excess of forty (40) per week. 

The minimum wage is thirty-tAvo and a half cents (321/40) per 
hour. Provision is made for learners being paid eighty percent 
(80%) of the minimum wage, but this class shall not exceed t^TX 
percent (10%) of the total number of regular employees. Aged 
cmplo3'ees to the extent of two percent (2%) may be employed and 
shall be paid ten dollars ($10.00) per week. 

The Medium and Low Priced Jewelry group includes the manu- 
facturers of jewelry of less than ten Karat (10 Kt.) fineness and a 
variety of inexpensive jewelry and other articles, such as cigarette 
cases, vanity cases, bags, and novelties made of base metals. The 
principal outlets for the products of this Industry arc the 5-and-lO- 
cent stores, variety stores and department stores. 

The number of concerns engaged in this Industry declined from 
1,100 in 1929 to G50 for 1933 or about 41%. Of the 650 concerns, 
80% are located in Massachusetts and Rhode Island. 

Employment in 1932 was approximately 60% of the 1929 level. 
Data for September 1933 indicates more persons emplo^^ed than 
the average for any year since 1929. This increase is due both to 

(357) 



358 

the recovery program and to the stimulation of the seasonal peak 
period. Reports from 62 representative firms indicate a 36.8 percent 
increase in employment over early 1933 levels. 

In contrast to the rate of decline in employment, the rate of de- 
cline in pay rolls was greater from 1930 to 1931 than from 1929 
to 1930. This comparison indicates that from 1929 through 1931 
wages were being reduced more rapidly than employment. From 
1931 to 1932 the wage reduction approximated the decline in em- 
plo3''ment. The 62 representative firms, which reported the 36.8 per- 
cent increase in employment, estimate a twenty-five percent (25%) 
increase in pay rolls for the same period, that is in the latter part 
of 1933 over the early part. It is evident from figures submitted that 
an increasing share of the value of product was allotted to labor 
during the years of depressed business, so that reduction in wage 
rates were necessary. 

FINDINGS 

The Administrator finds that: 

(a) The Code, as recommended, complies in all respects with the 
pertinent provisions of Title I of the Act, including, without limi- 
tation, subsection (a) of Section 7, and subsection (b) of Section 
10 thereof; and that 

(b) The Council of Jewelry and Allied Industries, the applicant 
group herein, imposes no inequitable restrictions on admission to 
membership and is truly representative of the Medium and Low 
Priced Jev/elry Manufacturing Industry. 

(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. 

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 

MEDIUM AND LOW PRICED JEWELRY MANUFACTURING 

INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are submitted as a Code of 
Fair Competition for the Medium and Low Priced Jewelry Manu- 
facturing Industry, and upon approval by the President shall be the 
standard of fair competition for such industry and shall be binding 
upon every member thereof. 

Article II — Definitions 

1. The term " Jewelry " as used herein, means jewelry commonly 
or commercially so known and articles of adornment, designed to 
be worn on apparel or carried or worn on or about the person. 

2. The term " Medium and Low Priced Jewelry Manufacturing 
Industry ", as used herein, means the manufacture and sale or dis- 
tribution by the manufacturer of jewelry made from base meals, 
rolled plated precious metals, solid silver, plastic, and casein ma- 
terials, and of gold of a fineness less than ten karat (10 Kt.), and 
subject to such limitation and description includes — 

(a) The manufacture of the following products: 

(1) Insignia jewelry and medals for schools, colleges, fraterni- 
ties, and other educational institutions or divisions thereof. 

(2^ Fraternal and emblematic jewelry. 

(3) Buckles and ornaments for millinery, dresses, bags, and shoes. 

(i) Watch bracelets and attachments. 

(5) Religious articles of a jewelry nature. 

(6) Collar buttons. 
^7) Men's jewelry. 

(8) Mesh bags and mesh products. 

(9) Cigarette cases, vanity cases, and compacts (except those for 
nationally advertised cosmetic brands). 

(10) Medium and low-priced jewelry of all types not specifically 
mentioned in the foregoing. 

(b) Manufacturers, wholesale dealers, and/or assemblers of: 

(1) Chatons, marcasites, imitation pearls, imitation pearl beads, 
imitation precious and semiprecious stones. 

(2) Jewelry, beads, bead necklaces, and bead jewelry. 

(c) Processors (commonly Imown as job shops) serving the manu- 
facturers of Medium and Low-Priced Jewelry, including bobbers, 
buffers, polishers, platers, engine turners, engravers, stonesetters, tool- 

(350) 



360 

makers, hub and die cutters, lacquerers, enamelers, refiners of scrap, 
and all other employers, the major part of whose work is for this 
Industry. 

3. The Medium and Low Priced Jewelry Manufacturing Industry 
inchides the following subdivisions: (a) Flat stock, sheet, wire, and 
tubing; (b) Kaw chain; and (c) Metal findings. 

4. The term " employee " as used herein includes anyone employed 
in the industry in any capacity receiving compensation for his serv- 
ices, irrespective of the nature or method of payment of such com- 
pensation. 

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

6. The term " factory or mechanical worker or artisan " as used 
herein includes all workers and assemblers engaged in the process of 
manufacture. 

1. The term " shipping and packing crew " as used herein includes 
those employees who perform no productive or mechanical operations 
of any kind; who wrap, package, card, or box the products of this 
industry and apply the same to customers' orders and ship the same. 

8. The term " wholesale dealer " as used herein means any person 
who manufactures and sells, imports, assembles, or contracts for the 
manufacture of medium and low priced costume jewelry, and such 
other products of this industry as come within the definition of this 
Code, and sells such products to the wholesale and/or retail dealer. 

Article III — Hours 

1. No employer shall employ any factory or mechanical worker 
or artisan in excess of forty (40) hours in any one week, except in 
seasonal periods, a twenty percent (20% ) tolerance shall be allowed 
on the basic worldng schedule. 

(a) Toolmakers, hub and die cutters may be employed a maximum 
of forty-eight (48) hours per week, but they shall not exceed five 
percent (5%) of the total number of employees employed in any one 
calendar month; and provided, that any employer may employ at 
least one toolmaker or hub and die cutter on this basis. In the event 
that the factory of any person is operated in more than one shift, no 
employee of this classification shall work more than forty (40) hours 
in any one week. 

(b) Time and one third shall be paid for all hours worked by any 
employee in excess of forty (40) hours per week. 

2. Employees (other than factory, mechanical workers, or arti- 
sans) may not be employed in any manner for more than forty (40) 
houre in any one week; provided, however, that in the case or ship- 
ping and packing crews, a tolerance of ten percent (10%) is per- 
mitted; provided further, that such shipping and packing crews 
shall be paid time and one third for all hours worked in excess of 
forty (40) in any one week. 

3. In the event of unusual emergencies requiring an extension of 
hours, members of the industry through the Code Authority may 
request permission from the Administrator for an extension of hours 
beyond those provided for in Sections 1 and 2 of this Article, with 
Buch provisions for overtime as the Administrator may prescribe. 



361 

4. Employers, includinf^ individuals, partners, officers, or stock- 
holders of corporations, or individual manufacturers, whenever 
engaged in productive work, shall conform to the working hours 
above prescribed. 

5. The above provisions for maximum hours do not apply to em- 
ployees engaged in a managerial, executive, or supervisory capacity 
who receive thirty-five dollars ($35.00) per week or more, nor to 
outside salesmen, when not engaged in productive labor. 

6. The maximum hours fixed in Section 1 shall not apply to any 
employee on emergency repair work involving break-downs or pro- 
tection of life or property, but in any such special case at least one 
and one third times the normal rate of pay shall be paid for all hours 
worked in excess of the maximum of forty (40) hours herein 
provided. 

7. Watchmen 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. 

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

Aeticle ly — Wages 

1. No employee shall be paid at less than the rate of thirty-two 
and one half cents (32^^) per hour. 

2. Learners, who are persons ha\dng had no previous experience or 
employment in this industry, shall be paid not less than eighty per- 
cent (80%) of the minimum hourly rate of thirty-two and one half 
cents (32%^) per hour; such period of learning not to exceed six (6) 
weeks ; and the number of learners employed by any one employer in 
any one month shall not exceed ten percent (10%) of the total num- 
ber of employees of such employer; provided that every employer 
shall be entitled to employ at least one learner. 

(b) Where, because of infirmities due to age or other causes, it 
is not possible for an employee working on a piecework basis to 
earn the hourly rates herein provided, the Code Authority may, 
upon petition of an employer, and with the approval of the Admin- 
istrator, permit such employee to continue in employment, provided, 
that the wages paid to such employee shall be not less than ten 
dollars ($10.00) per week; and provided further, that they shall be 
paid at the same rate per piece as other workers; such employees 
shall not in any case exceed two percent (2%) of the total number 
of employees regularly employed. This provision shall apply only 
to those in the employ of the member of the industry, so desiring 
their retention, who were so employed prior to the passage of the 
National Industrial Recovery Act. 

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. It is the policy of the members of this industry to refrain from 
reducing the compensation for employment which compensation was 

28293° 296-41 33 2 



362 

prior to June 16, 1933, in excess of the minimum wage herein set 
forth, notAvithstanding that the hours of work in such employment 
may be reduced; and all members of this industry shall endeavor 
to increase the pay of all employees in excess of the minimum wage, 
as herein set forth, by an equitable adjustment of all pay schedules. 
4. Female employees performing substantially the same work as 
male employees shall receive the ^ame rates of pay. 

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 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 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 de,signation 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, and 

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

5. Within each State this Code shall not supersede any laws of 
such State imposing more stringent requirements on employers 
regulating the age of employees, wages, hours of work, or 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 
copies of the wage and hour provisions of the Code. 

Article VI — ^Home Work 

1. Employers in this industry shall not directly or indirectly per- 
mit work of any kind to be done in the home or homes. 

Article VII — Administration 

To further effectuate the policies of the Act, a Code Authority is 

hereby established to cooperate with the Administrator in the 

administration of this Code, 

1. Organization and constitution of Code Authority, 

(a) The Code Authority shall consist of the Council of Jewelry 

and Allied Industries and one member of the Precious Jewelry 

Producing Industry. 



363 

(b) In addition to membership as above provided there may be 
not more than three (3) members, without vote and \vithout compen- 
sation from the Industry, to be appointed by the Administrator, to 
serve for such time as he may designate. 

(c) 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, organization, 
and activities, as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

(d) In order that the Code Authority shall at all times be truly 
representative of the Industry and in other respects comply with 
the provisions of the Act, the Administrator may provide such hear- 
ings as he may deem proper; and, 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 take such action as 
may be 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 Admin- 
istrator on review to disapprove any action taken by the Coda 
Authority. 

(a) Such agency may from time to time present to the Adminis- 
trator for his approval recommendations, based on conditions in the 
industry as they may develop, which tend to effectuate the policy of 
the National Industrial Kecovery Act, and it shall be the duty of the 
Code Authority, when experience under the code may require, to 
make such specific recommendations with reference to statistical 
reports ; keeping of uniform accounts ; as to methods and conditions 
of trading; regulations for disposal of distress merchandise; and 
such further recommendations for dealing with any other inequali- 
ties that may arise to endanger the stability of the industry and/or 
production or employment, and as may appear necessary or expe- 
dient to effectuate the purposes of Title I of the National Industrial 
Recovery Act. 

3. The Code Authority shall cooperate with the Administrator in 
making investigations as to the functioning and observance or non- 
observance of any of the provisions of this code, at its own instance 
or on complaint by any person affected, and to report the same to 
the Administrator. 

4. 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 may 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 in- 
dustry or any other party except to such governmental agencies as 
may be directed by the Administrator. 

5. No inequitable restrictions on admission to membership in the 
Council of Jewelry and Allied Industries, or any other trade asso- 



^364 

ciation or organized group, participating in the activities of tho 
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 bylaws 
relating to membership, provided that any person applying for such 
membership shall, in addition to the payment of such dues as are 
imposed and paid by all other members, accept a reasonable and 
equitable share of the cost of code development and administration. 
Such members of the industry who do not choose to become mem- 
bers of any trade association or organized group may participate 
in the activities of the Code Authority as herein provided by pay- 
ing to the Code Authority such proportionate part of the cost of 
code development and administration as the Code Authority, subiect 
to the Administrator's approval, shall prescribe as fair and equitable. 

Article VIII — Trade Practices 

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

(a) To give, permit to be given, or directly offer to give, anything 
of value for the purpose of influencing or rewarding the action of any 
employee, agent, or representative of another in relation to the busi- 
ness of the employer of such employee, the principal of such agent 
or the represented party, without the knowledge of such employer, 
principal, or party. Commercial bribery provisions shall not be con- 
strued to prohibit free and general distribution of articles commonly 
used for advertising except so far as such articles are actually used 
for commercial bribery as hereinbefore defined. 

(b) Securing confidential information, other than information 
pertaining to a violation of any provision of this Code, 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. 

(c) To use or to substitute any material differing in quality, de- 
sign, weight, or construction from that specified by the purchaser 
or representations made by the manufacturer prior to securing the 
order without the consent of the purchaser to such substitutions. 

(d) The defamation of competitors by falsely imputing to them 
dishonorable conduct, inability to perform contracts, questionable 
credit standing, or by other false representations or by the false 
disparagement of the grade or quality of their goods. 

(e) Maliciously inducing or attempting to induce the breach of 
an existing oral or written contract hetween a competitor and his 
customer or source of supply, or interfering with or obstructing the 
performance of any such contractual duties or services. 

(f) To aid or aoet any person, fiirUj association, or corporation 
in any unfair practice established in this Code. 

(g) The secret payment or allowance of rebates, refunds, commis- 
sions, credits, or unearned discounts, whether in the form of money 
or otnerwise; or the extension, secret or otherwise, to certain pur- 
chasers of special services or privileges not extended to all purchasera 
of the same class on like terms and conditions. 



365 

1. For an employer to contribute all or part of the cost of 
customers' advertising, unless the employer's name, trade name or 
trademark, clearly and distinctly appears in such advertising at 
some conspicuous place. 

(h) To grant quantity prices or quantity discounts for orders 
less in quantity than those for which the said prices or discounts are 
specified. 

1. To delay shipments of orders for which quantity prices or 
quantity discounts are granted beyond the time necessary to make 
delivery except in cases where a single future shipment of an entire 
order is agreed upon. 

(i) To withhold from or to insert in any invoice, statements which 
make the invoice a false record, wholly or in part, of the transaction: 
reported on the face thereof. 

(j) To make repairs or to refinish any products of the industry 
without a fair charge therefor, unless defective in material or manu- 
facture. 

(k) To stamp, brand, mark, or invoice with any word, symbol, 
mark, or quality mark any article of merchandise in violation of 
Federal or State Stamping laws (or any commercial standards cov- 
ering such articles issued by the United States Department of Com- 
merce) governing the stamping and marking of gold, gold filled, 
rolled gold plate, gold plate, gold electro-plate, and other gold- 
covered articles, or articles of other precious metals. 

(1) To grant trade discounts in any form except as provided in 
this Code. 

(m) To deliver (except to buyers and district offices of chain 
stores with a retail selling limit of $1.00 or less and except samples 
of findings for catalogue use, which shall remain the property of the 
producer, and except fraternal emblem pins and buttons) sample 
lines of complete or partially complete articles to distributors, unless 
charged for at the regular prices and on regular terms of sale and 
discount. 

(n) To imitate or simulate the mark or brand of a member of the 
industry, without permission of the owner. 

(o) To imitate or simulate any original design without the per- 
mission of the originator. " Design " is defined as follows : 

"A design is a pattern applied to, or a shape or form of a manu- 
factured product which is not of itself a work of art, and shall in- 
clude dies, molds, or devices by which such a pattern, shape, or 
form may be produced, original in its application to or embodi- 
ment in such manufactured product by reason of an artistic or 
intellectual effort, and which produces an artistic or ornamental 
effect or decoration, but shall not include patterns or shapes or 
forms which have merely a functional or mechanical purpose. Regu- 
lations for the administration of the above provisions shall be set 
up in accordance with Article VII of this Code." 

(p) No persons governed by this Code shall either directly or 
indirectly loan, consign, place on memo, or otherwise deliver any 
merchandise into the control or custody of any person for the pur- 
pose of placing same in any distributor's stock without transferring 
title to the same. 



366 

(q) Bills shall not be dated more than five (5) days after actual 
shipment of merchandise. 

(r) A note settlement or trade acceptance even if effected on 
or prior to the discount date shall not be considered as a cash 
payment. 

(s) Ko merchandise, except samples of findings, shall be de- 
livered as samples, except upon condition that same shall be re- 
turned or charged within fifteen (15) days following receipt. This 
provision shall not apply to merchandise delivered to catalogue 
houses or to buyers and district offices of chain stores having a 
retail selling limit of $1.00 or less ; provided, however, that all such 
merchandise shall be returned or charged within sixty (60) days 
following delivery. 

(t) No article of jewelry or findings, finished or unfinished, when 
filled in accordance with customers' orders and sold by any person 
shall be accepted for credit, exchanged, or in any other way returned 
by a purchaser unless such article is defective in material or manu- 
facture, and then within five (5) days of receipt of goods, provided 
this shall not apply to settlements made with any insolvent or 
embarrassed debtor. 

(u) Synthetic, reconstructed, doublet, or imitation stones, cultured 
and imitation pearls, sold either loose or mounted, shall be designated 
as such on invoices, tags, or other descriptive medium. 

(v) 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 this Code. 

Article IX — Sales Provisions 

1. No member of the Industry shall sell, exchange, or offer for 
sale any product of this Industry at a price below his own individual 
cost as determined by an adequate cost-finding system, capable of 
uniform application to the Industry and approved by the Adminis- 
trator, provided, however, that any member of the Industry may 
meet competition in any specific instance by selling his product at 
a price not less than the lowest price of a comparable article on file 
with the Code Authority and provided further that: 

(a) " Discontinued " merchandise, which is not deliberately manu- 
factured or acquired in such a manner as to frustrate the spirit and 
intent of this section, may be sold at less than cost ; provided, that all 
such sales shall be reported to the Code Authority not later than 
thirty (30) days thereafter. 

Article X — Discounts 

1. Effective as of January 1, 1934, the maximum cash discount 
shall be three percent (3% ) for payment on or before the tenth 
(10th) day of the month following the date of invoice. 

2. The maximum credit period shall not exceed ninety (90) days. 

3. A tolerance of thirty (30) days may be allowed to wholesalers. 



I 



367 
Article XI — Price Lists 

1. Each member of the industry shall,, on request of the Code Au- 
thority, ten days prior to the effective date of his price list, file his net 
current price lists and/or price lists with discount sheets, as the case 
may be, with the Code Authority. 

2. Revised price lists, except in case of increases of each and 
every item, with discounts thereon, shall be filed with ^^^he Code Au- 
thority ten (10) days prior to the effective divte. 

Article XII — Changes and Additions 

1. In order to enable the industry to conduct its operations subject 
to the provisions of this Code, to establish their trade within the 
industry and with those dealing with the industry, and otherwise to 
effectuate the purposes of Title I of the National Industrial Recovery 
Act, supplementary provisions or amendments of the Code, or addi- 
tional Codes, may be submitted from time to time for the approval 
of the President by the Code Authority, or by any of the divisional 
groups, through the Code Authority. Such supplementary provi- 
sions or amendinents, when approved, shall have the same force and 
effect as the major code upon the group or groups from which they 
originate. 

Article XIII — 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 Title I of the National 
Industrial Recovery Act, from time to time to cancel or modify any 
order, approval, license, rule, or regulation issued under Title I of 
said Act and specifically, but without limitation, to the right of the 
President to cancel or modify his approval of this Code or any con- 
ditions imposed by him upon his approval thereof. 

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 ap- 
plication to the Administrator and such notice and hearing as he 
shall specify, and to become effective upon approval of the President, 
unless otherwise provided. 

Article XIV — Monopolies, Etc. 

1. No provision of this Code shall be so applied as to permit 
monopolies or monopolistic practices, or to eliminate, oppress, or 
discriminate a,gainst small enterprises. 

Article XV — Price Increases 

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



368 

Article XVI — ErrEcrrvE Date 

1. This Code, together with the schedules attached hereto and made 
a part hereof, shall become effective on the day following the date 
of its approval by the President. 

Article XVII — Supplementary Provisions 

1. The follovvdng divisions (A, B, C, D, E, F, G, H, and I, inclu- 
sive) are supplementary to, and constitute part of, the Code of Fair 
Competition for the Medium and Low Priced Jewelry Manufacturing 
Industry. Such schedules apply only in those particular divisions 
of the Jewelry Industry indicated by the specific headings, and 
where such provisions conflict with the provisions of the basic code 
the provisions of the schedule, as to the particular division covered 
thereby, shall control. 

Approved Code No. 175. 
Registry No. 1215-1-01. 



i 

I 



SCIiEDULE A 

Division foe the I^Ianufactureks and Dis laETLTORS of Jetwelby fob Schools, 
Colleges, Fraternities, and OxHEii Educational 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 con- 
ti'acts for purchase of gold products, which were made prior to said Executive 
Order and are in full force and effect hetween 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 terms thereof. 

(c) Where a fraternity controls the manufacture and distribution of its 
insignia under contract, it is an unfair trade practice for unauthorized persona 
to manufacture, solicit, or accept orders for such insignia. 

2. DISCOUNTS 

(a) Discounts on all orders sold direct from any manufacturer of this Divi- 
sion to retail store--, where no salesman worlis 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 tlie 
approval of the Administrator, be determined liy 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 fraternity jewelry 
shall be required with the order, as follows : 

(1) On each class emblem order, not less tlian one dollar ($1.00) deposit 
where the retail selling price exceeds three dollars ($3.00) but is less than tea 
dollars ($10.00). 

(2) On each class emblem order, not less than three dollars ($3.00) deposit 
whore the retail selling price exceeds ten dollars ($10.00). 

Provided, however, that no deposit sliall 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 at least fifty percent 
(50%) of the purchase price thereof. 

4. SPECIAL ClIAKGES AND COIIMISSIONS 

(a) On all orders for high-scliool rings and pins the actual cost of the neces- 
sary dies shall be charged in accordance with a schedule submitted by the Code 
Authority and approved by the Administrator. 

(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 same 
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 commission 
as shown by the schedule thereof filed with the Code Authority. 

(369) 



370 

6. SALES VROVISIONS 

(a) No member of this Division shall sell, excliange, 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 in- 
dustry, to bo developed and set up by tlie Code Authority, subsequent to the 
effective date of this Code, and when approved by the Administrator, shall bo 
used by all members of this Division as the basis for deteraaining their 
individual cost. 

c. pracE LISTS 

(a) Each member of this Division shall, within five (5) days after the ef- 
fective date of this Code, file with the Code Authority a schedule of his net 
current price lists and discount sheets on forms prescribed by the Code Au- 
thority and approved by the Administrator. 

(b) Revised schedules of price lists and discount sheets may be filed from 
time to time thereafter with the Code Authority by any member of this Di- 
vision, to become effective upon the date specified by sucli member, which 
date sliall be not less than ten (10) days 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 file with the Code Authority. 

(d) Members of this Division shall keep accurate records of their indi- 
vidual costs, Avhich records shall upon request, with the approval of the Ad- 
ministrator, be available to tlie 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 such 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 sheets, shall be held in abeyance by the 
Code Authority pending submission of a revised price list based on the indi- 
vidual cost of each article to such member. 

7. TRADE PUACTICTCS 

In addition to the Trade Practices set forth in the Basic Code, the following 
constitute unfair methods of competition for members of this Division and arc 
prohibited : 

(a) Tlie giving of gi-atuitles of every description, such as keys, placques, 
cups, and any article of merchandise or anything of value, as well as all gratis 
rings or pins, bribes, special discounts, or rebates. 

(b) To guarantee a cash payment or installment payments as an inducement 
to secure a contract. 

(c) Advertising allowances, which have tlie 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 pxibli- 
cation, based on approximately tliree percent (8%) 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 institution, 
that wil 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 
signed 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 de- 
livery of goods on consignment or memorandum shall apply to members of this 
Division. 



371 

SCHEDULE B 
Division fob Manufacturers of Fratebnal and EiiBLEiiATic Jkwelst 

TBADE PBACTICES 

In addition to the Trade Practices set forth in the basic 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 nt the 
prevailing contract rate as provided by the law of the State In which said note 
may be executed. 



SCHEDULE C 



DmsioN FOB Impoetebs and Dhaleks of Chatons, Marcasitb:s, and Imttatioit 
Precious and SEiirpsEcious Stones 

1. No marcasltes, chatons, or imitation precious or semiprecious stones of 
any liind or description, suitable for the manufacture of jewelry or ornamen- 
tation of other material of any kind shall be sold on any terms more advanta- 
geous than the following: 

(A) DISCOUNTS 

(1) A discount not exceeding three percent (3%) shall be allowed for pay- 
ment within fifteen (15) days from the end of the month in which the mer- 
chandise is delivered, with a tolerance of ten (10) days, and no discount of any 
amount shall be allowed after the expiration of the discount period. 

(2) No discount or rebate or any other direct or indirect consideration or 
gratuity of any sort shall be allowed other than the discount stated in sub- 
Bection (1) of this article. 

(B) DATING S 

(1) No da tings shall be allowed, except that merchandise sold after the 
25th of any month may be dated as of the first of the month immediately 
following. 

(C) MEMORANDUit MEECHANDISE 

(1) Merchandise on memorandum shall be submitted for a period no longer 
than five (5) days from the day of delivery of such merchandise. Upon the 
expiration of five (5) days, such merchandise shall be returned or invoiced. 

(D) PAYMENT OF ACCOUNTS 

(1) Interest at the rate of six percent (6%) per annum, unless otherwise 
provided by state law, shall be charged on all accounts not paid for within 
sixty (GO) days from the end of the month in which delivery of merchandise 
was made. 

(2) A note settlement, even if efrected on or prior to the discount date, 
shall not be considered as payment within the meaning of this subdivision, 
and no account shall be considered paid until the proceeds of any note given 
in settlement shall have actually been collected. 



SCHEDULE D 



Division for the Manufactubees of AitERicAN-MADH Imitation Pearls and 
Imitations of Pkecious and Semi-Prex;ious Stones and Beiads, Assembled 
INTO Necklaces, Clasps, Braceletfs, Eakrinos, Clips. Rings, Bboocii Pins, 
Hairpins and Hat Pins 

1. LABEI.8 

(a) All jewelry of this class, manufactured in the United States under the 
provisions of this Code shall be entitled to bear an NPiA label, which shall be 



372 

attached to such jewelry by the manufacturer, upon application approved hy the 
Administrator, to he accompanied hy a statement of compliance with the pro- 
visions of this Code; provided that the privilege of using such labels may be 
suspended by the Administrator in respect to any such manufacturer whose 
operations shall be found to be in violation of this Code. The Imitation Pearl 
and Im.itation Stone division may establish appropriate plans for the issuance 
of such labels in accordance with the foregoing provisions. 



SCHEDULE E 



Division for the MANUPACTURE3is of Buckles and Ornaments fob Millinery, 

Dress, Bags, and SnoEia 

1. All shipments made by any member of this Division shall be f.o.b. point of 
ghipmeut Qxcepting to the five (5) boroughs of Manhattan. 



SCHEDULE F 



DI^^SION for Manufacturers Selling to Chain Storesi With a Retail 
Selling I^imit of One Dollar ($1.00) or Less 

1. terms 

(a) No product of this Division shall be sold on terms more favorable than 
net ton (10) days delivered. 

SCHEDULE G 

Division fob Manufacturers of Machine Chain 
1. definitions 

(a) An "Unfinished Chain Manufacturer" is a person, firm, or corporation 
producing soldered and unsoldered chain by the use of machines, or automatic 
tools, operated by skilled mechanics. 

(b) The term "soldered chain" means chain made of any metal, precious or 
nonprecious, in any form, shape, or design, each link fonned or linked by 
machine or automatic tools and soldered or welded. 

(c) The term "unsoldered chain" means chain made of any metal, precious 
or nonprecious, in any form, shape, or design, formed, shaped, or linked or 
hooked by machine or automatic tools. 

2. machine hours 

(a) Chain machinery, including automatic tools to produce chain, shall not 
be operated more than forty (40) hours in any one week ; provided, however, 
that upon application to the Code Authority the period of time during which 
chain machinery may be operated, for good cause shown, may be extended for 
such period as the Code Authority, subject to the approval and fi.nal decision 
of the Administrator, may deem necessary. 



(a) All unfinished chain shall be sold net thirty (30) days, f.o.b. factory, 
(h) No discounts of any kind shall be allowed. 

(c) No express or parcel post or insurance charges shall be allowed 
deducted from invoices. 

(d) No cash allowances shall be made. 

(e) No rebates shall be allowed or gratuities given. 



373 

4. SALES 1>E0\1SI0NS 

(a) No distress, so-called job lot unfinished chain shall be sold at less than 
cost, except \ipon application to tlio Code Authority and its approval of such 
sale. 

(b) No more unfinished chain, whether partially manufactured or not, shall 
be given than is charged on invoice. 

(c) No unfinished chain, soldered, welded, or unsoldered, shall be sold below 
actual cost or production. 

SCHEDULE H 

Division for Manutactukees of Findings 

1. discounts 

(a) No discount shall be allowed for cash In excess of two percent (2%) 
and for a period of payment not later than the fifteenth (loth) of the month 
following date of invoice, or with not due terms for a period beyond the end 
of the month following date of invoice. 

TRADE PRACTICES 

(a) No member of this Division shall make free delivery of merchandise 
except within the city where the producing manufacturer is located, or from 
any branch shipping point of said manufacturer. 

(b) No member of this Division shall date any bills in advance. 

(c) No member of this Divi.sion shall allow anticipation. 

(d) No member of this Division shall furnish, without charge, findings sam- 
ples in excess of twenty-five cents (25^) in value in any one shipment; provided, 
however, that the provisions of this section shall not apply to samples in cata- 
logue form or for catalogue use. 



SCHEDULE 1 
Division for the Manufactureus of Collar Buti'ons 

1. This division shall include those manufacturers of collar buttons whose 
products are made of gold of a grade less than ten karat (10 Kt.) fineness and 
shall not include manufacturers of solid pearl buttons, but shall include only 
manufacturers who sell to the jobbing trade. 

2. In addition to the unfair ti'ade practices of the basic Code, the following 
practices shall constitute unfair competition for the members of this Division 
and are prohibited : 

(a) To manufacture or sell a metal collar button without the manufacturers' 
trademark plainly stamped thereon. 

(b) To stamp metal collar buttons with other than the trademark of the 
manufacturer producing the same. 

(c) To furnish, without extra charge, any packaging or display material 
other than regular cards. 

(d) To make price allowance for collar buttons sold and shipped In bulk, 

(e) To manufacture or sell any Inlaid Pearl Collar Buttons other than 
22/back, or other than White Pearl Domed. 

(f) To manufacture or sell any Swaged Pearl Collar buttons other than 
22/back or other than all white quality. 

o 



Approved Code No. 176 
CODE OF FAIR COMPETITION 

FOR THE 

PAPER DISTRIBUTING TRADE 

As Approved on December 23, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application havinn; been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Kecoverv Act, approved June 16. 1933, for my approval of a Code 
of Fair Competition for the Paper Distributing Trade, and hearings 
having been held thereon and the Administrator having rendered 
his report containing an analj'sis of the said Code of Fair Competi- 
tion together with his recommendations and findings with respect 
thereto, and the Administrator having found that the said Code of 
Fair Com])etition 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, i^ursuant to the authorit}^ vested in me by Title I 
of the National Industrial Recovery Act, approved June 16, 1933, 
and otherwise, do adopt and approve the report, recommendations, 
and findings of the Administrator and do order that the said Code 
of Fair Competition be, and it is hereby, approved. 

FRANKLIN D. ROOSEVELT. 
Approval recommended : 
Hugh S. Johnson, 

A dministrator. 

The White House, 

December 23, 1933. 

27203° 244-226 33 (375) 



December 20, 1933. 
The President, 

The White Hmise. 

Sir : This is a report of the hearing on the Code of Fair Com- 
petition for the Paper Distributing Trade conducted in Washing- 
ton on September 28, 1933, in accordance witli the provisions of 
Title I of the National Industrial Recovery Act. 

The Code contains a provision that in the event that a general 
Wholesale Trade Code shall be approved, this Code shall auto- 
matically become a divisional code thereunder. 

HOURS AND wages 

The Code provides for a standard forty-hour week for all em- 
ployees except watchmen, outside delivery men, and executives, with 
a provision for not more than eight extra hours in a week for which 
time and one third shall be paid. 

Practically all of the employees of this Trade are of the ware- 
house and office class, and are paid on a weekly basis. This mini- 
mum wage under the Code will be from $14.00 to $15.00, depend- 
ing on the size of the city in which the employer's business is 
situated. 

A minimum Avage of 37^/20 for men and 340 for women is pre- 
scribed for about 100 employees engaged in incidental processing 
who are employed on an hourly basis. 

other provisions 

Provision is made for the Code Authority to file such reports 
with the Administrator as he may require, for the establishment of 
a uniform accounting and costing system, for the open publication 
of prices and adherence thereto, and for the prohibition of specific 
unfair trade practices. 

ECONOMIC EFFECT OF THE CODE 

The business of this Trade is the wholesale distribution of paper 
and paper products. It comprises about 1,000 establishments and 
employs approximately 20,000 persons. The Code reduces maximum 
hours from about 49 to 40, and increases minimum wages. No fig- 
ures are available as to employment in 1929, but the Trade estimates 
that the Code will increase employment by about 15% and restore it 
to approximately the 1929 level. 

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 

hereof; and that 

(376) 



377 

(b) The applicant ^roiip imposes no inequitable restrictions on 
•admission to membership therein and is truly representative of the 
Paper Distributing Trade ; and that 

(c) The Code as recommended is not designed to promote monop- 
olies or to eliminate or ojjpress 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 

PAPER DISTRIBUTING TRADE 

Article I 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act the f ollowino; is hereby submitted as a code of fair com- 
petition for the paper distributing trade, and upon approval by the- 
President its provisions shall be the standards of fair competition 
for such trade and shall be binding upon every member thereof. 

Article II — Definitions 

Trade. — The business of distribution by " wholesalers " or " dis- 
tributors " of any or all lines of paper and paper products in the 
United States, its territories and possessions, with the incidental 
processing of such products usual and ordinary in such trade. A 
" wholesaler " or " distributor " for the purpose of this code shall be 
defined as a person or firm, or a definitely organized division thereof, 
which buys and maintains at his or its place of business a stock of the 
lines of merchandise which it distributes, or which although not 
maintaining such stock buys such merchandise and in the sales thereof 
assumes credit risk ; and which through salesmen, advertising and/or 
sales promotion devices sells to retailers and/or institutional, com- 
mercial and/or industrial users, but which does not sell in significant 
amounts to ultimate consumers. 

Member. — A natural person, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, or receiver engaged in 
such trade. 

Ultimate Consumer. — The term " ultimate consumer " as used' 
herein is defined as a purchaser for home and personal use and not 
for use or consumption in trade or business or by institutions. 

Employee. — The term " employee " as used herein includes anyone 
engaged in the trade 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 such employee is compensated or employed. 

President, Act., Administrator. — The terms " President ", "Act ",. 
and "Administrator " as used herein shall mean, respectively, the 
President of the United States, the National Industrial Recovery 
Act, and Administrator appointed under Title I of said Act. 

Association. — The National Paper Trade Association of the United 
States. 

Population for the purposes of this Code shall be determined by 
reference to the 1930 Federal Census. 

Article III — Subordination 

1. If and when a General Code for the Wholesaling or Distribut- 
ing Trade, hereinafter referred to as the General Code, shall have 

(378) 



379 

been approved by the President and shall become effective, this Code 
shall become subordinate to such General Code and shall be deemed 
a supplemental Code for the Paper and Paper Products Commodity 
Division thereunder. 

2. Such General Code shall, when so approved, be recognized as 
binding in this Trade upon all the members thereof, and the Code 
Authority designated in this Code shall constitute the Divisional 
Code Authority for the Paper and Paper Products Commodity Divi- 
sion under the General Code, and shall have the powers prescribed 
for such Divisional Code Authority in the General Code. 

3. In the event that any provision of this Code shall be found to be 
inconsistent with the provisions of such General Code, the provisions 
of such General Code shall prevail (except as to the maximum hours 
and minimum wages herein prescribed which are more favorable to 
the employee) , and this Code shall be deemed to have been modified 
accordingly. 

Article IV — Administration 

1. The creation of a Code Authority to cooperate with the Ad- 
ministrator in administering the provisions of this code is hereby 
authorized. 

2. The Code Authority shall be composed of seven members se- 
lected by the Board of Directors of the Association with a view to 
geographical representation, two additional members selected by the 
members of the trade who are not members of the Association but 
who assent to this code and who agree to comply with the require- 
ments thereof and to sustain their reasonable share of the proper 
expenses of its administration in an equitable way with the approval 
of the Administrator (or such two members may be selected by the 
Administrator), and not more than three members designated by the 
Administrator who shall act in an advisory capacity without vote. 

3. (a) The Association shall (1) impose no inequitable restric- 
tions on membership, and (2) submit to the Administrator true 
cojjies of its articles of Association, bylaws, regulations, and amend- 
ments thereof when made, together with such information as to 
membership, organization, and activities, which the Administrator 
may deem necessary to effectuate the purposes of the Act. 

(b) In order that the Code Authority shall at all times be truly 
representative of the trade and in other respects comply with the 
provisions of the Act, the Administrator may 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 any other respect 
comply with the provisions of the Act, may require an appropriate 
modification in the method of selection of such Code Authority. 

4. Members of the trade shall be entitled to participate in and 
share the benefits of the activities of the Code Authority by assenting 
to and complying with the requirements of this Code and sustaining 
their reasonable share of the proper expenses of its administration. 
Such reasonable share of the proper expenses of its administration 
shall be determined by the Code Authorit}', subject to review by the 
Administrator, and shall be collected by the Code Authority from 
the members of the Trade. 



380 

5. Powers of the Code Authority: The Code Authority (1) 
shall require from members of the Trade such reports as are neces- 
sary to effectuate the purposes of this Code, and (2) may upon its 
own motion or upon complaint of any member of the Trade make 
investigation as to the functioning and observance of any provisions 
of this Code, and (3) may hear and attempt to adjust such com- 
j^laints, and report any violation of the Code to the Administrator, 
and (4) may from time to time appoint such committees as it shall 
deem necessary or proper with a view to geographical requirements, 
make rules and regulations for the organization and functioning of 
such committees which shall be known as Regional Committees, and 
delegate to any such committee or committees generally or in par- 
ticular instances such of its powers under the Code as it shall deem 
necessary or proper, subject to the approval of any actions of the 
said Regional Committee or committees by the Code Authority, and 
(5) shall generally administer this Code under the sanction and with 
the approval of the Administrator. 

6. All acts of the Code Authority shall be subject to review by 
the Administrator and to suspension, modification, or cancellation 
by him in any case in which he shall determine such act violates the 
purposes of the National Industrial Recovery Act. 

7. The Administrator may from time to time after consultation 
with the Code Authority issue such administrative interpretations 
of the various provisions of this Code as are necessary to effectuate 
their purpose. 

Article V — Hours 

1. Employees engaged in the Trade shall not be required or per- 
mitted to work hours in excess of the limits prescribed in the fol- 
lowing schedule: 

SCHEDULE OF WORKING HOURS 

(a) Watchmen: 56 hours per week but not more than six days in 
any one week. 

(b) Outside deliverymen : 91/2 hours in any one day and 48 hours 
in any one week; provided, however, that time worked in excess of 
91/2 hours in any one day and 48 hours in any one week shall be 
overtime and shall be paid for at not less than time and one third, 
and no such employee shall work over 4 hours overtime in any one 
week. 

(c) Executives and their personal secretaries and other employees 
regularly engaged in a supervisory capacity receiving $35 or more 
per week, and outside salesmen : no limitation. 

(d) All other employees: 8 hours in any one day and 40 hours 
in any one week; provided, however, that time worked in excess of 
8 hours in any one day and 40 hours in any one week shall be over- 
time and shall be paid for at not less than time and one third, and 
no such employee shall work over 8 hours overtime in any one week. 

Provided, however, that no limitation on hours of work contained 
in said schedule shall apply to employees of any class when engaged 
in emergency repairs or emergency maintenance work involving 
break-downs or protection of life and property, in which case time 
and one third shall be paid for hours worked in excess of the said 
schedule. 



381 

Article VI — Wages 

1. The minimum rates of pay shall be as follows: 

(a) In cities of over five hundred thousand population or in the 
immediate trade area thereof at the rate of $15 per week. 

(b) In cities of between two hundred fifty thousand and five 
hundred thousand population or in the immediate trade area thereof 
at the rate of $14.50 per week. 

(c) In cities, towns, or places under two hundred fifty thousand 
population or in the immediate trade area thereof at the rate of 
$14 per week. 

(d) The aforementioned minimum rates of pay shall be the mini- 
mum rates of pay for a 40-hour week, except for the employees 
specified under subdivision (b) of Section 1 of Article V hereof, and 
for such employees said minimum rates of pay shall be the minimum 
rates of pay for a 48-hour week. 

(e) In the case of employees on an hourly, part-time, or piece- 
work basis, at a rate which will not yield less for a full week than 
the minimum rate of weekly pay above prescribed. 

(f) In the case of employees continuously engaged in a mechani- 
cal or factory operation at the rate of $0,371/2 per hour fcA- male 
employees, and $0.34 per hour for female employees. 

2. Office boys and girls between the ages of sixteen (16) and 
eighteen (18) years inclusive may be paid at the rate of not less than 
80% of the minimums above mentioned otherwise applicable to them. 
The number of employees classified as office boys and girls shall not 
exceed 3% of the total number of employees of any employer pro- 
vided that every employer having at least ten (10) emploj^ees shall 
be entitled in any event to one office boy or girl hereunder. 

3. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed at light work at a 
wage of not less than 80% of the minimum prescribed by this Code 
provided the State Authority designated by the United States 
Department of Labor shall have issued a certificate authorizing his 
employment on such basis. Each member shall file with the Code 
Authorit}^ a list of all such persons employed by him. The provi- 
sion of this section requiring a certificate of authority shall not 
become effective until sixty (60) days after the effective date of this 
Code. 

4. Female employees performing substantially the same work as 
male employees shall receive the same rate of pay as male employees. 
The Code Authority shall within ninety (90) days after the effective 
date of this Code file with the Administrator a description of all 
occuiDations in the Industry in which both men and women are 
employed. 

5. The wage rates of all employees receiving more than the mini- 
mum rates herein prescribed shall be reviewed, and such adjust- 
ments, if any, made therein as are equitable in the light of all the 
circumstances, and within sixty (60) days after the effective date 
hereof the Code Authority shall report to the Administrator the 
action taken by all members of the Trade under this Section. 

6. Ever}^ employer shall make reasonable provisions for the safety 
and healtii of his employees at the place and during the hours of 
their employment. Standards for safety and health shall be sub- 



382 

mitted by the Code Authority to the Administrator within six (6) 
months after the effective date of this Code. 

Article VII — General Labor Provisions 

1. No person under 16 years of age shall be employed by any 
member of the Trade (provided, however, that where permitted by 
law persons between 14 and 16 years of age may be employed not in 
manufacturing or mechanical departments not to exceed three hours 
per day and those hours between 7 A.M. and 7 P.M. in such work 
as will not interfere with hours of day school), nor any one under 
18 years of age at operations or occupations hazardous in nature. 
The Code Authority shall submit to the Administrator within 60 
days from the effective date hereof 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. (a) Employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be re- 
quired as a condition of employment to join any company union or 
to refrain from joining, organizing, or assisting a labor organiza- 
tion 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. 

3. Within each State this Code shall not supersede any laws of 
such State imposing more stringent requirements on employers reg- 
ulating the age of employees, wages, hours of work, or health, fire, 
or general working conditions than under this Code. 

4. Employers shall not reclassify employees or duties of occupa- 
tions performed by emploj^ees so as to defeat the purposes of the Act. 

5. Each employer shall keep posted in conspicuous places acces- 
sible to employees the labor provisions of this Code. 

Article VIII — Accounting, Selling 

1. The Code Authority shall, as soon as practicable formulate a 
standard method of accounting and costing for the Trade and sub- 
mit the same to the Administrator. When it shall have been ap- 
proved by the Administrator, every member of the Trade 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. (a) In any geographical region in Avhich the Code Authority 
in its discretion believes the condition of competition in any article 
or articles of merchandise to require it, the Code Authority may by 
order put into effect a price reporting plan. Such plan shall be 
administered through a Regional Committee appointed as provided 
in Section 5 of Article IV hereof. Notice of such order shall be sent 



383 

to every known member of the Trade selling the article or articles 
specified in said order in the said geographical region. Every mem- 
ber of the Trade selling such articles in such geographical region may 
at its option within the time specified by the Code Authority in 
said order file with the Regional Committee a list showing the cur- 
rent prices and terms and conditions of sale (including all differen- 
tials, discounts, trade allowances and special charges), of such arti- 
cles offered for sale by such member in such region. Such member 
of the trade may from time to time file revisions of its price list; 
a revision, however, shall not be effective until 5 days after the 
same shall have been filed, imless a shorter period be permitted by 
the Regional Committee. When any member of the Trade shall file 
any such schedule or any revision thereof, any other member of the 
Trade selling in the said geographical region may also file a revision 
of his own schedule to become effective as of the same time as such 
first mentioned schedule. The Regional Committee shall send to 
each member of the Trade selling such articles in such geographical 
region requesting the same, a copy of all such schedules and of all 
changes and revisions thereof. Such information shall also be avail- 
able to any other persons concerned requesting the same. No mem- 
ber of the Trade filing a list of prices and terms shall sell such arti- 
cles within such geographical regions at prices lower or terms more 
favorable than those set forth in its price list aforesaid or in the 
revision thereof. 

After 25% in number and dollar volume of the known members 
of the Trade selling the articles specified by the Code Authority as 
aforesaid in such geographical region shall have filed their lists of 
prices and terms as aforesaid, notice to that effect shall be given by 
the Regional Committee to all known members of the Trade selling 
such articles in said geographical region. Thereafter no member of 
the Trade shall sell within the said geographical region any article 
or articles so specified by the Code Authority directly or indirectly 
b}'^ any means whatsoever at a price lower, or discounts greater, or 
on terms and conditions more favorable to the purchaser, than the 
lowest filed price, the highest filed discounts, or terms and conditions 
most favorable to the purchaser, then filed but nothing herein con- 
tained shall prevent such member of the Trade from at any time 
filing a list of his own prices, terms, and conditions of sale. 

(b) Each schedule filed under this section shall state whether the 
prices, terms, and conditions specified are justified under subdivision 
(a) or under subdivision (b) (1) of Section 4 hereof, and in the 
case of justification under subdivision (b) (1) shall identify the 
schedule or schedules of the other member or members of the Trade 
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 cancellation or revi- 
sion upwards of such justifying schedule or schedules. If Section 4 
of this Article be suspended the provisions of this subdivision shall 
be suspended for the same period. 

3. The Code 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, and for such 
purpose to require the member who filed such schedule to furnish 



384 

such information concerning the cost of such product as the Code 
Authority shall deem necessary or proper for such purpose. If the 
Code Authority, after such investigation shall determine that such 
price violates any of the provisions of this Article, the Code Au- 
thority shall so notify such member, and thereupon such price shall 
become void and of no effect. All such decisions by the Code 
Authority shall be filed with and be subject to review by the 
Administrator. 

4. Except in performance of bona fide contracts in existence on 
the effective date of this Code no member of the Trade shall sell or 
permit the sale of any merchandise at less than the lower of the 
following : 

(a) In order to prevent unfair competition in the Trade and to 
avoid the demoralization of the market for paper and paper prod- 
uct , the practice of selling any merchandise below the replacement 
cost thereof to the seller is hereby declared to be an unfair trade 
practice. This practice results in speculative buying for a rise in 
the market and encourages periodical overproduction by manufac- 
turers. Such overproduction in turn eventually makes for shut- 
downs in the paper manufacturing industry. It works back against 
the labor employed in manufacturing and distributing, and against 
the consumer. This declaration against sales below replcement 
cost by a member of the Trade does not prohibit him from selling 
any merchandise without adding to such replacement cost any profit 
to himself. But the selling price of merchandise should include 
an allowance for actual wages of labor, to be fixed and published 
from time to time by the Administrator. 

(b) 1. The lowest price then scheduled for such merchandise im- 
der the provisions of this Article VIII by any other member of the 
Trade when sold in a geographical region where a price reporting 
plan is in effect. 

2. Or, the lowest price for which such merchandise is being then 
bona fide offered under the provisions of this Article VIII by any 
other member of the Trade in a geographical region where a price 
reporting plan is not in effect ; provided that a complete description 
of any offer or sale pursuant thereto shall immediately be made to 
the Code Authority in such form and detail as it may prescribe. 

Bona fide quotations made hereunder may be maintained by the 
seller for five days after the making thereof. 

The jDrovisions of this Section shall remain in effect until July 
1, 1934, at which time it shall terminate and come to an end without 
further order unless renewed or extended by the Administrator. 

5. The restrictions specified in Sections 2 and 4 hereof shall not 
apply: (a) To any sale made in closing out in good faith any stock, 
in whole or in part, for the purpose of discontinuing its sale, pro- 
vided a statement is made to that effect on the invoice and provided 
such close-out stock is first listed with the Code Authority, and no 
close-out stock shall be offered without the approval of such 
Authority. 

(b) To sales of goods that are damaged or deteriorated in quality, 
provided that such goods are properly described by a statement to 
that effect on the invoice, and provided they shall be listed with the 



385 

Code Authority, and no dama<2:ed merchandise shall be offered with- 
out the approval of such Authority. 

(c) To transactions with other menibers of the Trade, provided 
that the same shall be listed with the Code Authority, and no such 
transactions shall be conducted without the approval of such 
Authorit}'. 

(d) To merchandise classified by the manufacturers thereof prior 
to its sale by them to the Trade as job lots or seconds, provided such 
merchandise is properly described by a statement to that effect on 
the invoice when sold by a member of the Trade. 

(e) To sales of distress merchandise sold to liquidate a defunct 
business, providinc; that such sales shall be made in such manner and 
on sucli terms and conditions as the Code Authority may approve. 

Powers ])rescribed for the Code Authority in subsections (a), (b), 
(c), and (e) hereof may be deleo;ated by the Code Authority to the 
Keiiifmal Committees to be appointed under Section 5 of Article 
IV of this Code. 

6. The Code Authority ma}^ suspend for any period of time and 
from time to time, all of Section 4 of this Article but not part thereof, 
as to an}' article or articles sold by the Trade in any geographical 
region. 

Article IX — REroRxs, Statistics 

1. Each member of the Trade shall prepare and file with the Exec- 
utive S?crctary of the Code Authority at such time and in such man- 
ner as it may prescribe such reports and statistical information as 
it. subject to the approval of the Administrator, or the Administrator 
may require from time to time to reflect conditions in the Trade. 
Any or all information so furnished by any members 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 
accountant or accountants or qualified person or persons designated 
by the Code 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 shall be confidential, and the statistics, 
data, and information of one member shall not be revealed to another 
member. Xo 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. The Code Au- 
thority shall arrange in such manner as it may determine for the 
publication currently to members of reports and statistics hereunder. 

3. The Code Authority shall make such reports to the Adminis- 
trator as he may from time to time require. 

4. In addition to information required to be submitted to the 
Code Authority, there shall be furnished to Government Agencies 
such statistical informat'on as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act. 

Article X. — Trade Practices 

1. No member of the Trade shall ])ublish advertising (whether 
printed, radio, display, or of any other nature), which is misleading 
or inaccurate in any material particular, nor shall any member in 



386 

any way misrepresent any goods (including, but without limitation, 
its use, brand, trade mark, grade, quality, quantity, origin, size, sub- 
stance, character, weight, strength, thickness, nature, finish, material, 
content, or preparation) or credit terms, values, policies, services, or 
the nature or form of the business conducted. 

2. No member of the Trade shall knowingly withhold from or 
insert in any quotation or invoice any statement that makes it inac- 
curate in any material particular. 

3. No member of the Trade shall brand or mark or pack any goods 
in any manner which is intended to or does deceive or mislead pur- 
chasers with respect to the brand, grade, quality, quantity, strength, 
thickness, origin, size, substance, character, nature, finish, material, 
content, or preparation of such goods. 

4. No member of the Trade shall publish advertising which refers 
inaccurately in any material particular to any competitors or their 
goods, prices, values, credit terms, policies, or services. 

5. No member of the Trade shall publish or circulate unjustified 
or unwarranted threats of legal proceedings which tend to or have 
the effect of harassing competitors or intimidating their customers. 
Failure to prosecute in due course shall be evidence that any such 
threat is unwarranted or unjustified. 

6. No member of the Trade shall secretly offer or make any pay- 
ment or allowance of a rebate, refund, commission, credit, unearned 
discount, or excess allowances, whether in the form of money or other- 
wise, nor shall a member of the Trade sell below published prices or 
terms or secretly offer or extend to any customer any special service 
or privilege not extended to all customers of the same class, for the 
purpose of influencing a sale. 

7. No member of the Trade shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influenc- 
ing or rewarding the actions of any employee, agent or representa- 
tive of another in relation to the business of the employer of such 
employee, or the principal of such agent or the represented party, 
without the knowledge of such employer, principal or party. Noth- 
ing herein contained shall prohibit the free distribution of articles 
commonly distributed for advertising. 

8. No member of the Trade shall attempt to induce the breach 
of any existing contract between a competitor and his customer or 
source of supply; nor shall any such member interfere with or ob- 
struct the performance of such contractual duties or services. 

9. No member of the Trade shall guarantee to sell below the price 
of a competitor. 

10. No member of the Trade shall interfere with a competitor's 
business through enticing of employees from the employment of such 
competitor, provided, however, that nothing in this paragraph shall 
jDrevent an employee of one employer from offering his services 
to a competitor, nor prevent any employer from employing the em- 
ployee of another employer. 

11. No member of the Trade shall deliberately misrepresent 
" firsts " as " seconds " or " seconds " as " firsts." 

12. No member of the Trade shall execute instruments for the 
sale of merchandise purporting to be contracts in which only one of 
the parties is understood to be bound to perform. 



387 

13. No member of the Trade shall neglect to observe in letter and 
in spirit obligations assumed or contracts entered into as buyer or 
seller. 

14. No member of the Trade shall sell goods on consignment or 
place goods in the possession of the buyer to be paid for when sold, 
unless authorized by the Code Authority due to special circumstances. 

15. No member of the Trade shall misrepresent to any manufac- 
turer or his agent either as to price, terms, or other considerations 
the offerings of a competitive numufacturer. 

Article XI — Recommendations 

1. The Code Authority may, from time to time, present to the Ad- 
ministrator recommendations based on conditions in the Trade 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 and 
simplified practice recommendations for the Trade and for the codi- 
fication of its trade customs, and the enforcement thereof. 

(b) For the establishment of rules relating to selling and account- 
ing in addition to or in substitution for the rules prescribed by Sec- 
tions 2, 3. 4, and 5 of Article VIII hereof, or any of them. 

Such recommendations when approved by the Administrator shall 
have the same force and effect as the provisions of this Code. 

Article XII — Modification 

1. This Code and all the provisions thereof, are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of subsection (b) of Section 10 of the Act, from time to time 
to cancel or modify any order, approval, license, rule or regulation 
issued under Title I of said Act and specifically, but without limita- 
tion, to the right of the President to cancel, or modify his approval 
of this Code or anj' 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 used upon application to the Administrator, 
and such notice and hearing as he shall specify, and to become effec- 
tive on approval of the President. 

Article XIII — Monopolies 

1. Xo provision of this Code shall be so applied as to permit 
monopolies, or monopolistic practices, or to eliminate, oppress, or dis- 
criminate against small enterprises. 

Article XIV — Effecttve Date 

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

Approved Code No. 176. 
Registry No. 405-3-07. 

O 



Approved Code No. 177 

CODE OF FAIR COMPETITION 

FOR THE 

SILVERWARE MANUFACTURING INDUSTRY 

As Approved on December 23, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for mv approval of a Code of 
Fair Competition for the Silverware Manufacturing Industry, and 
hearings 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 tne said 
Code of Fair Competition complies in all respects with the pertinent 
provisions of Title I of said Act and that the requirements of clauses 
(1) and (2) of subsection (a) of Section 8 of the said Act have been 
met. 

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

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

A dhndnistrator. 
The White House, 

December 23, 1933. 

282920 296-40 33 (389) 



December 17, 1933. 
The President, 

The White House. 

Sir: A Public Hearing on the Code of Fair Competition for the 
Silverware Manufacturing Industry, submitted by the Silverware 
Manufacturers Institute, 20 West 47th Street, New York, N.Y., was 
conducted in Washington on the 2nd of October, 1933, in accordance 
with the provisions of the National Industrial Recovery Act. This 
Association claims to represent ninety percent (90%) of the 
Industry. 

The maximum hours permitted under this Code are forty (40) 
per week. During peak demand periods employees may be permitted 
to work forty-eight (48) hours per week, provided that the average 
for any three months period does not exceed forty (40) hours per 
week. Provision is made for the employment of hub and die-cuttera 
for forty-eight (48) hours per week, but this class of employee shall 
not exceed five percent (5%) of the total number of employees. 
Watchmen and engineers may work forty -two (42) hours when 
averaged over any two week period. Members of the Industry while 
doing productive work shall come under the maximum hours pro- 
vided for in the Code. 

The minimum wage is thirty-five cents (350) per hour. Provision 
is made for learners, who are to be paid eighty percent (80%) of the 
minimum wage for a three months learning period, but this class of 
employee shall not exceed 5% of the total number of employees. 
Aged employees to the extent of 2% of the total employees shall be 
paid not less than eighty percent (80%) of the minimum wage. 
Provision is made for an equitable adjustment of all wages above the 
minimum. 

Silverware is a luxury. The raw materials which are used are 
costly and this must be recognized in considering the problems of 
production. This should undoubtedly be given much consideration 
in seeking to account for the rapid decline of the industry since 
1929, at which time the total value of the products of the industry 
were $85,800,000.00. This had declined in 1932 to $33,000,000.00. 
There was a loss of 29 firms operating in the industry from 1929 to 
1933. 

It should also be emphasized that the business is largely seasonal 
since the sales are mostly made at certain seasons, viz, Fall, May and 
June for Weddings, and Christmas. For that reason it is important 
that the hours be averaged down to forty (40) per week over a three- 
months period rather than a flat forty (40) hour week. 

Style, fluctuations in price of silver, and other materials and 
demand play a large part in this industry, and it is almost impossible 
to anticipate demands, thus leaving no possible way of so spreading 
out the work and the sales over several months so as to relieve con- 

(380) 



891 

ffestion and give steady employment to the workers and thus prevent 
the " dull " season. 

In April 1933 there were 1,572 unemployed workers in this indus- 
try. Between April and October 1933 there has been a 20% increase 
in employment and approximately 17% increase in the average 
hourly rate of pay. 

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- 
lion, subsection (a) of Section 7 and suosection (b) of Section 10 
thereof; and that 

(b) The Silverware Manufacturers Institute, the applicant group 
herein, imposes no inequitable restrictions on admission to member- 
ship and is truly representative of the Silverware 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 nerewith submitted is 
recommended. 

Respectfully, 

Hugh S. Johnson, 

Administrator, 



CODE OF FAIR COMPETITION 

FOR THE 

SILVERWARE MANUFACTURING 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 Industry, and upon approval by the Presi- 
dent, its provisions shall be the standards of fair competition for 
such Industry and shall be binding upon every member thereof. 

Article II — Definitions 

1. The term the " Industry " as used herein shall mean the manu- 
facture of Sterling Silverware, Platedware, Pewter ; the manufacture 
of table knives, forks, spoons, and other flatware, hollow ware, 
toiletware, ornaments. Ecclesiastical ware, novelties, etc., where such 
articles are composed of solid silver, of metal plated with silver, 
gold, or other metal, or of nickel silver, or of pewter. 

2. The term " member of the industry " includes, but without limi- 
tation, 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. 

3. The term " Institute " as used herein shall mean the Silverware 
Manufacturers Institute. 

4. The term " division " refers to the several parts of the industry 
which are or may be established by the Institute under the defim- 
tions in Section 1, as follows : 

1. Plated Flatware 

2. Plated Hollow Ware 

3. Plated Toiletware and Novel- 

ties 

4. Hotelware — F 1 a t w a r e and 

Hollow Ware 

5. Pewter, Chromium Plate and 

Miscellaneous 

6. Sterling Flatware 

7. Sterling Hollow Ware 

8. Sterling Toiletware 

9. Sterling Novelties 

5. The term " employee " as used herein includes anyone engaged 
in the industry in any capacity receiving compensation for his 
services, irrespective or the nature or method of payment of such 
compensation. 

6. The term " learner " as used herein shall mean any employee 
with not more than three months' experience or emplo3^ment in thia 
industry. 

(392) 



893 

7. The term " hotelware " (hollow ware and flatware) as used 
herein shall include that merchandise customarily sold to the hotel, 
club, restaurant, railroad, and steamship trade. 

8. The terms "Act " and "Administrator " as used herein shall 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 (40) 
hours in any one week or eight (8) hours in any one day, except as 
follows : 

(a) This limitation shall not apply to seasonal peak demand peri- 
ods during which, however, no employee shall be permitted to work 
in excess of forty-eight (48) hours in any one calendar week; nor 
shall the average hours of employment for any three (3) months' 
period exceed forty (40) hours per week. 

(b) Hub and die cutters may be employed a maximum of forty- 
eignt (48) hours per week, but the total number of such employees 
working shall not exceed one in number, or five percent (5%) of the 
total number of employees engaged by such meniber of the Industry, 
whichever is the higher. 

(c) Watchmen and engineers, who may be employed in pairs, and 
shall work not more than thirty-six and forty-eight hours in alter- 
nate weeks, or not more than forty-two (42) hours per week averaged 
over any period of two weeks. 

(d) Officers, executives, and employees engaged in a managerial 
capacity who receive more than thirty-five dollars ($35.00) per 
week, and outside salesmen, shall be exempt from the maximum 
hours herein established. 

(e) The maximum hours fixed in this Article shall not apply to 
any employee on emergency repair work involving break-downs or 
protection of life or property, but in any such special case the average 
hours worked by any employee, when averaged over a period of six 
months, shall not exceed forty (40) hours per week. 

(f) Employers while working as producers shall adhere to the 
working hours above prescribed in Section 1. 

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

Article IV — Wages 

1. No employee shall be paid at a rate less than thirty-five cents 
(350) per hour, except as follows: 

(a) Learners, who shall be employed as such for not more than 
three (3) months, shall be paid not less than eighty percent (80%) 
of the minimum hourly rate of compensation established in this 
Code. The number of learners employed by any one employer in 
any one month shall not exceed one in number or five percent (5%) 
of the total number of employees of such employer, whichever is 
the higher. 

(b) Where, because of age, physical or mental handicap, a per- 
son's capacity is limited, the Code Authority maj, upon petition 



394 

of an employer, and with the approval of the Administrator, per- 
mit such persons to be engaged in performing light work, provided, 
that the wages paid to such employee shall be not less than eighty 
percent (80%) of the minimum rate of pay herein established; 
provided, however, that he shall be paid the same rate per piece as 
other employees; and provided further, that such persons shall not 
in any case exceed two percent (2% ) of the total number of persons 
regularly employed by the employer so petitioning. 

(c) In the case of employees performing work for which they 
are paid per piece of work performed, the minimum rate of pay 
shall be sufficient to produce a weekly wage not less than the mini- 
mum rate prescribed in this Code for work on a time basis. 

2. It is the policy of the members of this Industry to refrain from 
reducing the weekly rate of compensation of employees whose said 
rate of compensation is above the minimum rate established in this 
Article. As far as practicable, the rates of compensation for various 
labor operations which receive more than the minimum shall be 
equitably adjusted, due account being taken of the number and 
extent of such downward adjustments as may have been made in any 
individual case prior to May 1, 1933, as well as of the number and 
extent of such upward adjustments as may have been made sub- 
sequent to that date. Within thirty (30) days each manufacturer 
shall report to the Administrator, through the Code Authority, all 
readjustments of wage rates made in accordance with this section. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the Industry, nor anyone under eighteen years of age at opera- 
tions or occupations hazardous in nature or detrimental to health. 
In any State an employer shall be deemed to have complied with 
this provision if he shall have on file a certificate or permit duly 
issued by the authority in such State empowered to issue employ- 
ment or age certificates or permits, showing that the employee is of 
the required age. 

2. In compliance with Section 7 (a) of the Act it is provided: 

(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, and 

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

3. No provisions in this Code shall supersede any State or Federal 
Law which imposes on employer more stringent requirements as to 
age of employees, wages, hours of work, or as to safety, health. 



395 

sanitaiy, or general working conditions than are imposed by this 
Code. 

4. No employer shall reclassify emplo5^ees or duties or occupations 
performed as they existed on October 1, 1933, or engage in any other 
subterfuge for the purpose of defeating the purposes or provisions 
of the Act or of this Code. 

5. Each emploj'er shall post and keep posted full copies of this 
Code in conspicuous places, accessible to all employees. 

6. If any emploj^er of labor in the Silverware Manufacturing in- 
dustry is also an employer of labor in any other Industry the provis- 
ions of this Code shall apply to and affect only that part of his busi- 
ness which is engaged in the manufacture of Silverware, as herein 
defined. 

Article VI — Home Work 

No member of the Industry shall distribute or permit to be dis- 
tributed, directly or indirectly, work of any kind to be done in home 
or homes. 

Article VII — Administration 

To further effectuate the policies of the Act, a Code Authority is 
hereby established 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 the Executive Council of 
the Silverware Manufacturers Institute, and in addition thereto, not 
more than three (3) members, without vote and without compensa- 
tion from the Industry to be appointed by the Administrator and to 
serve for such time as he may designate. 

(b) Vacancies in the personnel of the Code Authority selected by 
the Industry shall be filled through the appointment by the Admin- 
istrator upon nomination of the Code Authority. 

(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 prescribe 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 take such action 
as he may deem necessary under the circumstances. 

(d) 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. 

(e) Any action of the Code Authority or of any agency thereof, 
which the Administrator may deem unfair or improper, or which 
may be represented to him by any interested party, as unfair to any 
private interest, improper, or contrary to the public interest, may be 
suspended by the Administrator for such period of time, not to exceed 
thirty daj^s, as he may deem necessary to afford an opportunity for 
investigation into such action. Further action by the Code Author- 



396 

ity, on the matter under investigation, shall be held in abeyance 
pending final determination by the Administrator. 

2. The Code Authority shall have the following duties and/or 
powers in addition to those elsewhere provided in this Code, subject 
to the right of the Administrator to disapprove any action taken by 
the Code Authority. 

(a) To administer 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 re(juired for the administration of the Code and 
to provide for submission by members of such information and reports 
as the Administrator may 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 Industry 
or any other party except to such governmental agencies as may be 
directed by the Administrator. 

(d) To establish an adequate system of cost accounting, capable 
of uniform application within the Industry, which, when approved 
by the Administrator, shall be used by all members of the Industry 
as a basis for cost finding. 

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

(f ) 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. 

(g) To secure from members of the Industry who assent to this 
Code and/or participate in the activities of the Code Authority an 
equitable and proportionate payment of the reasonable expenses ol 
maintaining the Code Authority and its activities. 

(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. 

3. No inequitable restrictions on admission to membership in the 
Silverware Manufacturers Institute, or any other trade association 
or organized group participating in the activities of the Code Au- 
thority, 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 bylaws relating 
to membership, provided that any person applying tor such mem- 
bership shall, m addition to the payment of such dues as are imposed 
upon and paid by all other members, accept a reasonable and equir 



397 

table share of the cost of code administration. Such memt)ers of the 
Industry who do not choose to become members of any such trade 
association or oro^anized ^roup may participate in the activities of 
the Code Authority by leaving to the (^ode Authority such propor- 
tionate part of the cost of code administration as the Code Authority, 
subject to the disapproval of the Administrator, shall prescribe to 
be fair and equitable. 

4. The Cocle Authority shall, within sixty (60) days after the 
effective date of this Code, establish a series of quality standards 
to mark the various grades and qualities of the products of the 
industry, which when approved by the Administrator, may be used 
by all members of the industry. 

Article VIII — Trade Practices 

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

1. No member of the Industry shall sell any product of the Indus- 
try below his individual cost figure, as determined by the cost 
accounting system to be established by the Code Authority and 
approved by the Administrator : or fail in the case of " group " 
sales to price and bill separately the individual prices of the articles 
comprising said " groups ", provided, however, that any member of 
the Industry may, in order to meet bona fide competition in any 
specific instance, sell at the lowest reasonable cost within the Indus- 
try, as determined by the Code Authority and approved by the 
Administrator, notwithstanding such lowest reasonable cost may be 
less than his individual cost, and provided further, that obsolete 
and/or discontinued merchandise may be sold at less than cost if 
it is not deliberately manufactured in such manner as tends to frus- 
trate the spirit and intent of this Code. All sales below cost as 
permitted above, and all sales of such obsolete and/or discontinued 
merchandise shall be reported to the Code Authority within five 
(5) days of the date of the sale, giving the name and address of 
the purchaser, the date and the amount of the sale, together with 
any other pertinent information requested by the Code Authority. 

2. No member of the Industry shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influenc- 
ing or rewarding the action of any employee, agent, or representative 
of another in relation to the business of the employer of such em- 
ployee, the principal of such agent or the represented party, without 
the knowledge of such employer, principal, or party. Commercial 
bribery provisions shall not be construed to prohibit free and general 
distribution of articles commonly used for advertising except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

3. No member of the Industry shall secure or cause to be secured 
confidential information concerning the business of a competitor by 
a false or misleading statement or representation, by a false imperson- 
ation of one in authority, or by bribery, or by any other unfair 
method. 

4. No member of the Industry shall procure, or cause to be pro- 
cured, any information concerning the business of any other member 



398 

of the Industry which is properly regarded as a trade secret or as 
confidential, without such member's consent, provided that this Sec- 
tion shall not include information relating to a violation of any 
provision of this Code. 

5. No member of the Industry shall imitate or copy any original 
design, mark, or brand exclusively owned by any other member of 
the industry, or simulate the quality markings as established by the 
Code Authority and approved by the Administrator, on goods in- 
ferior in quality to the standards established for the marks so 
simulated. 

6. No member of the Industry shall use or substitute any material 
differing in quality from that specified by tlie purchaser. 

7. No member of the Industry shall make, cause, or knowingly 
permit to be made or published any false, materially inaccurate, or 
deceptive statement by way of advertisement or otherwise, whether 
concerning the grade, quality, q^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 oi 
the Industry, or otherwise having the tendency or capacity to mis- 
lead or deceive customers or prospective customers. 

8. No member of the Industry shall cause the defamation of com- 
petitors by falsely imputing to them dishonorable conduct, inability 
to perform contracts, questionable credit standing, or by other false 
representations or false disparagement of the grade or quality of 
their goods. 

9. No member of the Industry shall disseminate, publish, or cir- 
culate false or misleading information relative to products manu- 
factured by such member or knowingly encourage or continue to 
Bell to any distributor who persists in such practice. 

10. No member of the Industry shall make or give any guaranty 
or protection in any form against advance or decline in the market 
price of any product, except as specifically permitted by the Code 
Authority subject to the approval of the Administrator. 

11. No member of the Industry shall misdate any invoice in such 
manner as to result in the customer procuring the merchandise at a 
price below the current price. 

12. No member of the Industry shall grant to any retail distributor 
special discounts or rebates or any allowances, direct or indirect, for 
advertising purposes, unless granted to all retail distributors under 
like terms and conditions. 

13. No member of the Industry shall pay or make allowances, re- 
bates, refunds, commissions, credits, or unearned discounts, whether 
in the form of money or otherwise, or secretly or otherwise extend 
special services or privileges to certain purchasers not extended to 
all purchasers on like terms and conditions. 

14. No member of the Industry shall fail to adequately mark all 
products with the manufacturer's name or registered trade mark or 
with some other such mark which shall have been registered with 
the Code Authority for the purpose of identifying the maker, but 
no member of the Industry shall falsely mark or brand any product 
of the Industry which has the tendency to mislead or deceive cus- 
tomers or prospective customers, whether as to the grade, quality, 



399 

quantity, substance, character, nature, origin, size, finish, or prepara- 
tion of any product of the Industry or otherwise. 

15. No member of the Industry shall permit any buyer to return 
any merchandise, other than nationally advertised merchandise or 
samples not intended for resale, when the agreement of sale is fully 
performed by such memljcr. No member of the Industry shall 
permit articles which carry a nationally advertised price to be re- 
turned by virtue of this section unless the buyer is charged with the 
cost of transportation and a minimum refinishing and/or rehandling 
charge of ten percent (10%) in the case of plated ware and five 
percent (5%) in the case of all sterling ware returned as provided 
for in this section. Nothing in this section shall be construed to 
prevent a member of the Industry from accepting the return of 
merchandise for legitimate credit reasons, when the return is 
approved by the Code Authority and/or the Administrator. 

16. No member of the Industry shall ship any merchandise having 
a cost of less than ten dollars ($10.00) net unless there shall be added 
to the invoice and collected from the customer a package charge of 
twenty -five cents (25^). 

17. No member of the Industry shall sell or offer for sale any 
article on which the manufacturer has stamped any quality mark 
established by the Code Authority and approved by the Admin- 
istrator as provided for in Section 4 of Article VII unless the actual 
quality of said article conforms in all respects to the standard so 
established : Provided, however, that this provision shall not become 
effective for a period of ninety (90) days after the approval of such 
established quality marks by the Administrator. 

18. No member of the Industry shall ship any merchandise except 
sterling ware on memorandum or consignment or sell such mer- 
chandise with the privilege of returning all or any portion of same. 
The provisions of this section shall not apply to merchandise shipped 
for exhibition purposes only and not intended for resale. 

19. No member of the Industry shall ship any sterling ware on 
memorandum or consignment to remain in the dealer's hands for a 
period longer than fourteen (14) days. On all such memorandum 
or consignment shipment the dealer shall be charged with all trans- 
portation charges, and if such sterling ware is not returned within 
the period herein specified, the dealer shall immediately be billed 
for same and the invoice therefor shall clearly set forth the original 
shipping date and the date of receipt of such sterling ware by the 
dealer, and shall not be subject to return, except for legitimate credit 
reasons, when such return is approved by the Code Authority and/or 
the Administrator. The provisions of this section shall not apply 
to sterling ware shipped for exhibition purposes only and not 
intended for resale. 

20. No member of the Industry shall publish or otherwise an- 
nounce any guaranty, whether limited or unlimited, for a specified 
period of time in connection with the lasting or wearing qualities 
of plated ware, or encourage or continue to sell to any distributor 
or dealer who persists in publishing or otherwise announce such a 
guarantee in connection with the plated ware of the manufacturer 
concerned. 



400 

21. No member of the Industry shall submit contract proposals 
for hotel ware on other than standard forms to be established by the 
Code Authority, which shall include definite specifications in regard 
to base metal, weights of blanks of flatware for patterns that are 
regularly made in more than one weight, solder, silver plating 
standard, patterns, special markings, terms, and unit prices, and the 
date of such proposal, and unless specifications have been changed, 
no member of the Industry shall change his unit price on proposals 
already submitted, when such change is made to secure award of the 
contract by reducing such prices below one or more other bidders. 
Nothing in this section shall be construed to alter any right of any 
bidder to withdraw his proposal before acceptance thereof. 

(a) No member of the Industry shall fail to charge for the cost 
of special consumer marking dies or stamps for hollow ware or flat- 
ware, or for the cost of marking consumer's names, monogram, or 
crest, whether stamped, hand engraved, etched, or applied on hotel 
hollow ware and flatware. Cost shall be determined as in Article 
VIII, Section (1) of this Code. 

(b) No member of the Industry shall participate in connection 
with the sale of silverware in the financing in any form of hotels, 
clubs, restaurants, railroads, or steamship lines. 

(c) Where a special pattern in hotel ware is made for the exclu- 
sive use of a consumer, no member of the Industry shall fail to 
charge for the cost of dies or tools necessary to produce the same, 
but upon payment thereof, such dies or tools for which such charge 
is made shall become the property of the consumer who pays for 
them. Costs shall be determined as set forth in Article VIII, Sec- 
tion (1) of this Code. 

Article IX — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of subsection (b) of Section 10 of Title I of the Act, from 
time to time to cancel or modify any order, approval, license, rule, 
or regulation issued under said Act. 

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 X — Monopolies, Etc. 

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

Article XI — ^Pricb Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made impossible of consummation if prices of goods and 



401 

services increase as rapidly as wages, it is recognized that price 
increases should be delayed and that, when made, the same should, 
so far as reasonably possible, be limited to actual increases in the 
seller's costs. 

Article XII — Effective Date 

This Code shall become effective on the first Monday after its 
approval hj the President. 



Approved Code No. 177. 
Registry No. 1223-1-02. 



o 



Approved Code No. 178 

CODE OF FAIR COMPETITION 

FOR THE 

WATCH CASE MANUFACTURING INDUSTRY 

As Approved on December 23, 1933 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Watch Case 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 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 m me by Title 
I of the National Industrial Recovery Act, approved June 16, 1933, 
and otherwise, do adopt and approve the report, recommendations, 
and findings of the Administrator and do order that the said code 
of fair competition be and is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

A dTninistrator. 

The White House, 

December 23, 1933. 

28704° 296-50 33 (403) 



December 18, 1933. 
The President, 

The White House. 

Sir : A Public Hearing on the Code of Fair Competition for the 
Watch Case Manufacturing Industry of the United States, submitted 
by the National Watch Case Manufacturers Association, 20 West 47th 
Street, New York City, was conducted in Washington on the 29th 
of September 1933 in accordance with the provisions of the National 
Industrial Recovery Act. The Association claims to represent ap- 
proximately 79 percent of the industry. 

The maximum hours established in this code are forty (40) per 
week, with a provision for peak demand periods of 96 hours per year 
in excess of the maximum, provided time and one third is paid for 
all hours per week over forty (40). 

The establishment of a 40-hour week by the code will not reabsorb 
any of the unemployed in this industry, numbering approximately 
2,250 workers. The amount of production as well as the number of 
workers employed in this industry has steadily fallen since 1923, 
with the result that where 4,325 workers were employed in 1923, only 
1,150 were employed in the industry during the first six months 
of 1933. 

In order to reemploy the workers who have become detached from 
the industry since 1923 it would be necessary to establish an eleven- 
hour week, assuming that production will be maintained as of 
April 1933. 

The average for all factory employees in this industry in 1929 was 
55.6 hours per week. In April 1932 average hours had dropped to 
29 per week. A slight improvement was registered in April 1933, 
when the average rose to 32 hours per week. 

The minimum wage established in the code is 350 per hour, or 
$14.00 per week. It is estimated that raising the wages of employees 
receiving below this minimum (approximately 26 percent of the 
total) would add about 6 percent to the pay roll oi the industry. 
However, the code also provides that the wages of those employees 
receiving compensation in excess of the minimum shall be equitably 
adjusted where practicable, which will undoubtedly increase the pay 
roll to some extent. 

The effect of wage increases on selling prices should not amount to 
more than three or four percent. However, the increasing price of 
gold will undoubtedly have a considerable effect on the prices of the 
products of this industry. 

At the Public Hearing all factors were in complete agreement that 
the present loose stamping standards are woefully inadequate and 
operate to the distinct and definite disadvantage of the consumer, the 
employer, and the employee. The Code, therefore, provides stand- 
ards for the products of this industry which will eliminate these 
evils and work to the advantage of everyone concerned. 

(404) 



405 



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 Watch Case Manufacturers Association, the applicant 
group herein, imposes no inequitable restrictions on admission to 
membership and is truly representative of the Watch Case Manufac- 
turing Industry ; and that 

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

The Watch Case Manufacturing Industry has cooperated in a most 
satisfactory manner with the Administration in the preparation of 
this Code. From the 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 

WATCH CASE MANUFACTURING INDUSTRY 

Articue I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this code is submitted as a Code of Fair Competition 
for the Watch Case Manufacturing Industry, and upon approval by 
the President its provisions shall be the standard of fair competition 
for such industry and shall be binding upon every member thereof. 

Article II — Definitions 

1. The term " Watch Case Manufacturing Industry " as used 
herein is defined to mean the manufacture and sale by the manufac- 
turer, of any case, covering, or housing, of any quality or description, 
for a time-keeping device intended to be worn on or about the person. 

2. The term " employee " as used herein shall include all persons 
employed in any capacity in the conduct of any branch of the watch 
case manufacturing industry, as defined above, receiving compensa- 
tion for his services, irrespective of the nature or method of payment 
of such compensation. 

3. The term " employer " as used herein shall include all those who 
employ labor in the conduct of any branch of the watch case manu- 
facturing industry as defined above, and anyone by whom such 
employee is compensated or employed. 

4. The term " member of the industry " includes anyone engaged 
in the industry as defined, either as an employer or on his own 
behalf. 

5. The terms "Act " and "Administrator " as used herein shall 
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 (40^ 
hours in any one week, or eight (8) hours in any twenty-four (24) 
hour period, except that due to seasonal peak demand periods, with, 
the approval of the Administrator, an aggregate of ninety-six (96) 
hours j)er year in excess of the* maximum shall be allowed provided, 
however, that time and one third shall be paid for all hours per week 
over forty (40). 

2. The maximum hours fixed in the foregoing shall not apply : to 
executives and employees in managerial capacities who now receive 
thirty-five dollars ($35.00) per week or more; nor to outside sales- 
men; nor to emergency repair crews while engaged in emergency 

(406) 



407 

repair work, involving breakdowns or protection of life and prop- 
erty; provided, however, that emergency repair crews shall be paid 
one and one half times their normal rate of pay for all hours in 
excess of forty (40) per week. 

ArticIaE IV — ^Wages 

1. No employee in the Watch Case Manufacturing Industry shall 
be paid at less than the rate of fourteen dollars ($14.00) per week of 
forty (40) hours or thirty-five cents (35^) per hour. 

2. In the case of employees performing work for which they are 
paid per piece of work performed, the minimum pay which each 
member of the industry shall pay for such work shall not be less 
than thirty -five cents (35^) per hour of labor. This Article estab- 
lishes a minimum rate of pay, regardless of whether an employee 
is compensated on time rate, piecework performance, or other basis. 

8. It is the policy of the members of this industry to refrain from 
reducing the weekly rate of compensation of employees whose said 
rate of compensation is above the minimum rate established in this 
Article. As far as practicable the rates of compensation for various 
labor operations which receive more than the minimum shall be 
equitably adjusted, due account being taken of the number and ex- 
tent of such downward adjustments as may have been made in any 
individual case prior to May 1, 1933, as well as of the number and 
extent of such upward adjustments as may have been made sub- 
sequent to that date. Within thirty (30) days each manufacturer 
shall report to the Administrator through the Code Authority all 
readjustments of wage rates made in accordance with this section. 

4. Female employees performing substantially the same work as 
male employees shall receive the same rates of pay as male employees. 

Article V — General Labor 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 which are hazardous in nature or detri- 
mental to health. The Code Authority shall submit to the Adminis- 
trator before January 1, 1934, a list of such occupations. In anj 
State an employer shall be deemed to have complied with this provi- 
sion if he shall have on file a certificate or permit duly issued by the 
authority in such State empowered to issue employment or age certif- 
icates or permits, showing that the employee is of the required age. 

2. In compliance with Section 7 (a) of the Act, it is provided: 

(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 -organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection. 

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



408 

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

3. Within each State tliis Code shall not supersede any laws of 
such State imposing more stringent requirements on employers regu- 
lating the age of employees, wages, hours of work, or general work- 
ing conditions than under this Code. 

4. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees so as to defeat the purposes of the 
Act. 

5. Each employer shall post in conspicuous places full copies of 
this Code. 

6. On and after the effective date of this Code all home work shall 
be prohibited. 

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

8. If any employer in the Watch Case Manufacturing Industry is 
also an employer of labor in any other industry, the provisions of 
this Code snail apply to and affect only that part of the business of 
such employer which is included in the Watch Case Manufacturing 
Industry. 

Article VI — ^Administration 

To further effectuate the policies of the Act, a Code Authority is 
hereby established to cooperate with the Administrator in the ad- 
ministration of this Code. 

Section 1. Orga/nization and Constitution of Code Authority. — 
(a) The Code Authority shall consist of five members of the Indus- 
try, or such other number as may be approved from time to time by 
the Administrator, to be chosen by a fair method of selection, ap- 
proved by the Administrator. The Administrator, at his discretion, 
may appoint not more than three additional members, without vote 
and without compensation from the industry, to represent the Admin- 
istrator and to serve for such time as he may designate. 

(b) The National Watch Case Manufacturers' Association shall be 
the agency under the Code Authority for administering the pro- 
visions of this Code. This Association or any other industrial associ- 
ation directly or indirectly participating in the selection or activities 
of the Code Authority shall submit to the Administrator true copies 
of its articles of association, bylaws, regulations, and any amend- 
ments when made thereto, together with such other information as to 
membership, organization, and activities as the Administrator may 
deem necessary to effectuate the purposes of the Act. 

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



409 

(d) No inequitable restrictions on admission to membership in the 
National Watch Case Manufacturers' Association 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 bylaws 
relating to membership, provided that any person applying for such 
membership shall, in addition to the payment of such dues as are 
imposed and paid by all other members, accept a reasonable and 
equitable share of the expenses of 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 provided by paying to the Code 
Authority such proportionate part of the expenses of administration 
as the Code Authority, subject to the Administrator's approval, shall 
prescribe as fair and equitable. 

Sec. 2. Powers cmd 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, oal 
review, to disapprove 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 
ana 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 may 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 gov- 
ernment 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 individual reports shall be disclosed to any other member of the 
industry or any other party except to such governmental agencies as 
mav be directed by the Administrator. 

(d) To regulate the disposal of distress, obsolete and/or discon- 
tinue merchandise in a way to secure the protection of the owners 
and to promote sound conditions in the Industry. 

Sec. 3. For the purpose of administering the provisions of this 
Code, the Code Authority, by its duly authorized representatives, 
not engaged in the Industry, shall have access to any and all statisti- 
cal data that may be furnished in accordance with the provisions of 
this Code, and wherever such representatives may discover support- 
ing facts indicating a violation of this Code, they shall furnish any 
and all statistical data pertaining to such violation to the Code Au- 
thority and the Administrator. 

ARncx.B VII — Trade Practices 

The following practices constitute unfair methods of competition 
and are prohibited. 



410 

Section 1. To sell or offer for sale any product of the industry 
below cost, as determined by an adequate cost accounting system to 
be formulated by the Code Authority and approved by the Adminis- 
trator. However, any member of the industry shall be permitted 
to sell below cost when necessary to meet the competitive price of a 
lower cost producer. 

Sec, 2. To manufacture any merchandise so as to simulate obso- 
lete and/or discontinued merchandise, and to sell or offer to sell the 
same in such a manner as to frustrate the spirit of this Code. Pro- 
vided that any actually obsolete and/or discontinued merchandise 
may be sold at less than cost; such sales to be reported to the Code 
Authority within five days of the date thereof giving the quantity 
and price, together with any pertinent facts requested by the Code 
Authority. 

Sec. 3. No member of the industry shall give, permit to be ^iven, 
or directly offer to give, anything of value for the purpose of influ- 
encing or rewarding the action of any employee, agent, or represent- 
ative of another in relation to the business of the employer of such 
employee, the principal of such agent, or the represented party, 
without tne knowledge of such employer, principal, or party. Com- 
mercial bribery provisions shall not be construed to prohibit free 
and general distribution of articles commonly used for advertising 
except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

Sec. 4. The making, or causing, or knowingly permitting to be 
made or published, any false, substantially 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 indus- 
try, or otherwise, tending to mislead or deceive customers or prospec- 
tive customers. 

Sec. 5. The imitation of the trade marks, trade names, slogans, 
orio;inal desi^s, or brands, or other marks of identification of com- 
petitors, having the tendency and capacity to mislead or deceive 
; purchasers or prospective purchasers. 

' Sec. 6. To make and supply exclusive models without including in 
the invoice as a separate item, the cost of any dies and tools especially 
made for the production. 

Sec. 7. To supply, without charge, crystals, straps, bracelets, 
crowns, bows, pendants, or other parts; or to repair, without charge 
except for manufacturing defects, worn cases, crystals, straps, brace- 
lets, or parts. 

Sec. 8. To disseminate, publish, or circulate any false or mislead- 
ing information relative to the conditions of employment of any 
member or 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. 

Sec. 9. To make or give any guaranty of protection in any form 
against advance or decline in the market price of any product. 

Sec. 10. To ^rant secret payments or allowances of rebates, re- 
funds, commissions, credits, or unearned discounts, whether in the 



411 

form of money or otherwise, or to grant any secret extension to 
certain purchasers of special services or privileges not extended to all 
purchasers on like terms and conditions. 

Sec. 11. To ship goods, except samples, on consignment or memo- 
randum. 

Sec. 12. To sell on terms greater than two (2) percent tenth (10th) 
of month following, net sixty (60) days. 

Article VIII — Standards 

1. No member of the Industry shall manufacture, sell, or offer 
for sale, any watch case, on the outside surface of which he has not 
indelibly and legibly stamped in some visible place his name or 
duly registered trade mark, accompanied by a quality mark equally 
indelible and legible, in accordance with the following standards 
and conditions. 

(a) No watch case may be stamped, tagged, or described with 
the word " Quality " or with an;y other words or form of words 
denoting " quality , other than with one of the six specific quality 
marks as follows: 

(1) No watch case may be stamped, tagged, or described with 
the quality mark '• Platinum " unless every part of said case, free 
from solder, and excepting the crown, shall consist of at least 
985/lOOOth parts of platinum, iridium, palladium, ruthenium, 
rhodium and/or osmium, and unless in addition the entire watch 
case, exclusive of the crown, shall consist of at least 950/lOOOth 
parts of pure platinum. In no case may the word " Platinum " be 
abbreviated. 

(2) No watch case may be stamped, tagged, or described with 
the quality mark " Solid Gold " unless accompanied by its proper 
karat mark, and unless every part of the case, free irom solder, 
shall assay in actual fineness, within three one-thousandth 
(3/lOOOth) parts of the fineness indicated by said karat mark; and 
unless in addition, the entire case exclusive of the crown, shall assay 
within one half karat fineness of the fineness indicated by said karat 
mark. In no case may the works " Solid Gold " be abbreviated. 

(3) No watch case mav be stamped, tagged, or described with the 
quality mark " Sterling unless every part of the case, free from 
solder, shall assay nine hundred and twentv-five one-thousandths 
^925/lOOOth) pure silver with a tolerance or four one-thousandths 
(4/lOOOth), and unless in addition, the entire watch case exclusive 
of the crown, shall assay nine hundred and twenty-five one-thou- 
sandths (925/lOOOth) pure silver, with a tolerance of ten one-thou- 
sandths (lO/lOOOth). In no case may the word "Sterling" be 
abbreviated. 

(4) No watch case may be stamped, tagged j or described with the 
quality mark " Gold Filled " unless accompanied by its proper karat 
mark, and imless the sheet of gold aflBxed, brazed, or fused to the 
outer surface of the back, center, lugs, open face bezel, pendant, 
crown, and bow, shall be three one-thousandths (3/lOOOth) of an 
inch in thickness as a minimum ; and unless the sheet of gold affixed, 
brazed, or fused to the inner surface of the back, the inner and 



412 

outer surfaces of the cap, and the outer surface of the hunting bezel, 
shall be one one-thousandth (1/lOOOth) of an inch in thickness as 
a minimum. In no case may the words " Gold Filled " be 
abbreviated. 

(5) No watch case may be stamped, tagged, or described with the 
quality mark " Rolled Gold Plate " unless accompanied by its proper 
karat mark, and unless the sheet of gold affixed, brazed, or fused to 
the outer surface of the back, center, lugs, open face bezel, pendant, 
crown and bow, shall be one and one-half one-thousandths 
(li/2/lOOOth) of an inch in thickness as a minimum. In no case may 
the words " Rolled Gold Plate " be abbreviated, 

(6) No manufacturer shall make or offer for sale any watch case 
which does not contain Platinum, Gold, or Silver in quantity as 
determined by the Code Authority, unless he shall stamp the words 
" Base Metal " legibly and indelibly on the outside surface of said 
watch case, as provided in the first paragraph of this Article. In no 
case may the words " Base Metal " be abbreviated. 

2. The quahty marks " Solid Gold ", " Gold Filled "^ and " Rolled 
Gold Plate " shall be accompanied in every instance with the proper 
karat mark : provided, however, that no watch case may be stamped 
with any such quality mark, unless it shall be of a quality of 10 
karat fineness or greater. Such marks shall mean that the gold 
employed in all component parts of such watch case are of the 
fineness so stamped. 

3. For the purpose of determining the legitimate use of specific 
trade names or marks on or in connection with watch cases of any 
given quality, each manufacturer shall file with the Code Authority 
a complete list of trade names or marks specifying in each case the 
grade or quality of the cases on which he proposes to stamp such 
names or marks; and the Code Authority, with the approval of the 
Administrator, shall decide as to the proper use of such names or 
marks. 

4. It is hereby specifically provided that watch cases completely 
manufactured prior to the effective date of this Code shall be exempt 
from the provisions of this Article, provided that each member of 
the Industry shall, within thirty days after said effective date, 
certify under oath to the Code Authority, the number, type, mark- 
ings, quality, and serial numbers, if any, of such completed watch 
cases as he has in finished stock on that date, and that sales of all such 
watch cases shall be reported monthly to the Code Authority, by the 
manufacturer, in detail, as to the date of sale, name of purchaser, 
number, type, markings, quality, and serial number, if any; and 
provided further that unless stamped in compliance with, the pro- 
visions of this Article, regardless of the date of its manufacture, 
no watch case shall be sold, or offered for sale, after July 1, 1934, 
or such reasonable extension beyond said date as may be granted by 
the Administrator upon application therefor. 

Article IX — Modification 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of subsection (b) of Section 10 of the Act, from, time to 



413 

time to cancel or modify any order, approval, license, rule, or 
regulation issued under said Act. 

Sec. 2. This Code, except as to provisions required by the Act, 
may bo modified or amended on the basis of experience or changes 
in circumstances, such modifications or amendments to be based 
upon application to the Administrator and such notice and hear- 
ing as he shall specify, and to become effective on approval of the 
President unless otherwise provided. 

Article X — Monopolies 

Section 1. No provision of this Code shall be so applied as to 
permit monopolies or monopolistic practices, or to eliminate, oppress, 
or discriminate against small enterprises. 

Article XT — Price Increases 

Section 1. Whereas the policy of the Act to increase real pur- 
chasing power will be made more difficult of consummation if priceg 
of goods and services increase as rapidly as wages, it is recognized 
that price increases, except such as may be required to meet indi- 
vidual 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 XII — Effective Date 

This Code shall become effective on the second Monday after ita 
approval by the President. 



Approved Code No. 178. 
Registry No. 122.5-01. 



o 



Approved Code No, 179 

CODE OF FAIR COMPETITION 

FOR THE 

ELECTROTYPING AND STEREOTYPING 
INDUSTRY 

As Approved on December 23, 1933 

BY 

PRESIDENT ROOSEVELT 



I 



Executive Order 

All application having been duly made, pursuant to arc! in full 
compliance with the provisions of Title I of the National Industrial 
liecovery Act, approved June 16, 19:33, for my approval of a Code of 
Fair Competition for the Electrotyping and Stereotyping 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 Avith 
re.si)ect thereto, and the Administrator having found that the said 
Code of Fair Competition complies in all resj^ects 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 
otiierwise, do hereby adopt and approve the report, recommendations 
and hndings of the Administrator and do order that the said Code 
of Fair Competition be and it is hereby approved, subject to the 
following conditions : 

1. That the maximum hours of work specified in Article III of 
the Code and/or any other j^rovisions of the Code relating to hours 
of work, shall not be construed as a minimum work da}?^ or work 
week ; 

PROVIDED, that if at any time in any locality, employees en- 
gaged in any trade or craft, through their chosen representatives, 
express by written request to their employer or employee, a desire 

29046° 296-105 33 (415) 



416 

to share available work with bona fide resident competent mechanics 
in their particular trade or craft, the number of hours may be ad- 
justed by mutual agreement; 

PROVIDED further, that if local agreement proves impossible 
witliin fifteen (15) days after such request, the question may be 
appealed by either party to a local Board set up by mutual agree- 
ment of the parties, or to the Labor Board established in Article VIII 
of the Code. 

2. That my approval of the Code as a separate Code is limited to 
a period of three (3) months from the effective date thereof, and the 
Administrator is hereby authorized, after such public notice and 
hearing as he may prescribe, to require the Electrot3q3ing and Stereo- 
typing Industry to operate under the Code of Fair Competition for 
the Graphic Arts Industries. 

PROVIDED, hoAvever, that if the Administrator so orders, no 
changes in any provisions of the Code of Fair Competition for the 
Electrotyping and Stereot3q)ing Industry other than appropriate 
modifications of the definitions and of the Administrative provisions 
of said Code, are authorized by this Order of Approval. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Adtjiirusti^ator. 

The White House, 

December 23, 1933. 



December 22, 1933. 
The President, 

The White House. 

Sir : Hearings were held on a Code for Electrotypin^ and Stereo- 
typing coincidentally with the hearings on the other Graphic Arts 
Codes. 

The Electrotyping and Stereotyping Industry was reluctant to 
come under tlie scope of such a basic code. Its attitude was the 
same as that of the Photo-Engraving Industry and the reasons 
for it are discussed at some length in my reports on the Graphic 
Arts and Photo-Engraving Codes and in the memorandum by Dep- 
uty Administrator Lindsay Rogers which is part of the Graphic 
Arts record. I recommend the approval of a separate code for 
Electrotyping and Stereotyping and suggest that your Executive 
Order make two conditions of approval of the code which will be 
more specifically referred to later. 

EXTENT OF THE INDUSTRY 

In the year 1929, according to the Census of Manufactures, there 
were 230 trade stereotyping and electrotyping establishments em- 
ploying during the year an average of 6,487 wage earners at an 
average annual salary of approximately $2,100. The total value 
of production during this year was in excess of $35,000,000. In 
common with other branches of the Graphic Arts Industries these 
wage earners are for the most part highly skilled mechanics. 

By 1931, employment in this branch of the industry had declined 
to 4.857 representing a decrease of over 25% from the 1929 level. 
It has not been possible to determine the extent to which unemploy- 
ment has further grown at the present time, but there is no question 
that in common wnth other branches of the Graphic Arts it presents 
a very serious problem. 

HOURS AND WAGES 

In common with the Photo-Engraving Code a 40-hour work week 
is established as a maximum for productive employees. As I empha- 
sized in my report to you on that trade the application of these pro- 
visions cannot be expected to reduce unemployment to any appre- 
ciable extent. It is to be hoped that voluntary work-sharing pro- 
grams will be instituted, and continued where now prevalent to take 
up the slack and to ameliorate to some extent the conditions now 
prevailing among this highly skilled group of w^orkers. 

A basic minimum wage rate of $1.00 per hour for electrotyping and 
stereotyping journeymen is specified in this Code with an increase 
of 10% for night workers. As in the case of the Photo-Engraving 
Code tliis represents substantial agreement between tlie industry 

(417) 



418 

and the representatives of organized labor. The provisions for other 
employees conform essentially to those adopted in codes previously 
approved. 

TRADE PRACTICES 

The provisions regulating trade practices appear to be intelli- 
gently designed to prevent unsound competition in this industry, and 
involve no unsound economic policies. 

ANALYSIS or CODE 

The Code as recommended may be summarized as follows: 

Article I states the purposes of the Code. 

Article II sets forth various definitions. 

Article III prohibits the employment of persons under 16 j'ears 
of age in this industry, embodies the mandatory provisions of Sec- 
tion 7 (a) of the National Industrial Recovery Act, and contains- 
other provisions relating to general labor conditions. 

Article IV provides a standard work week of 40 hours with certain 
exceptions. 

Article V sets minimum wage scales. 

Article VI establishes a standard basis of estimating and pricing^ 
and of determining costs of production. 

Article VII constitutes a Code Authority and gives it certain 
powers. 

Article VIII establishes a joint Labor Board to consider and pass 
upon any alleged violations, disputes or nonobservance of the Labor 
Provisions of this Code. 

Article IX regulates trade practices. 

Article X provides for the modification of this Code in accordance- 
with the provisions of subsection (b) of Section 10 of the National 
Industrial Recovery Act. 

Article XI specifies that no provision of this Code shall be so- 
applied as to permit monopolies or monopolistic practices ; and 

Article XII fixes the effective date of the Code. 



CONDITIONS OF APPROVAL 



J 



I recommend that your Executive Order suggest to the Industry 
the desirability of reducing the work week below forty hours when 
this can be done by agreement between representatives of the em- 
ployers and representatives of the employees and that you empower 
the Labor Board, which the Code sets up, to act as an agency in 
using its good offices to effect proper adjustments below the maximum) 
of forty hours per week. 

The desire of the Graphic Arts Industries to have the basic code 
cover Electrotyping and Stereotyping has already been referred to. 
The present code does not cover privately owned electrotyping and 
.stereotyping establishments (that is, operated in connection with 
commercial printing establishments and not making electrotyping 
and stereotyping for sale). Such privately owned establishments 
are covered under the Graphic Arts Code. Conflicts of jurisdiction 
are bound to arise. 



419 

Under these circumstances, I recommend that your Executive 
Order approving this Code make, as a condition of approval, the 
stipulation that the se])arateness of the Code for the industry be 
reconsidered at the expiration of a three-months period. When this 
period elapses the Code will be continued as a separate code or its 
provisions will be incorporated unchanged in the Graphic Arts basic 
code. The industry agrees to this condition of approval. 

I am making the same recommendation in respect of the separate 
code for Photo-Engraving and in respect of the Graphic Arts Code, 
since it may turn out that certain industries and groups are im- 
properly under this Code. 

FINDINGS 

The Administrator finds that : 

(a) The Code complies in all respects with the pertinent provi- 
sions of Title I of the National Industrial Recovery Act, including 
without limitation subsection (a) of Section 7 and subsection (b) 
of Section 10 thereof; and 

(b) The International Association of Electrotypers imposes no 
inequitable restrictions upon ihe membership therein and is truly 
representative of the Electrotj^ping and Stereotyping Industry' ; and 

(c) The Code is not designed to promote monopolies or to elimi- 
nate or oppress small enternrises and will not operate to discrimi- 
nate against them, and will tend to effectuate the policies of Title I 
of the National Industrial Recovery Act. 

I recommend that the Code be approved. 
Respectfully, 

Hugh S. Johnson, 

Admmistrator. 



CODE OF FAIR COMPETITION 

FOR THE 

ELECTROTYPING AND STEREOTYPING INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Re- 
covery Act, this Code is established as a Code of Fair Competition 
for the Electrotyping and Stereotyping Industry, and its provisions 
shall be the standards of fair competition for such industry and 
shall be binding upon every member thereof. 

' Article II — Definitions 

The term " electrotyping and stereotyping industry " as used 
herein, includes all plants engaged in the production or partial pro- 
duction of electrotypes, stereotypes, matrices, wax engravings (run- 
ning shells, casting and finishing), aluminotypes, and rubber plates, 
used in relief printing and/or made for sale or for the use and benefit 
of the producers or of others than the person, firm, or corporation 
that produces such products, and all persons, firms, or corporations 
that purchase the above-named products for the purpose of resale; 
excepting newspaper and periodical publishers who own and print 
their own publication or publications and who manufacture the 
product or products of the electrotyping and stereotyping industry 
for their own publications only. 

The term " member of the industry " includes, but without limi- 
tation, 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. 

The term " employee " or " employees " as used herein, is defined 
to include all persons hired or employed by any employer, as above 
defined, and the members of the family of any employer who are 
engaged in carrying on any operations within the Electrotyping 
and Stereotyping Industry, whether employed or not; excepting 
those pereons who serve in executive, administrative, supervisory, 
and sales capacities. 

The terms "Act " and "Administrator " as used herein mean re- 
spectively Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery. 

The term " Standard Scale " shall mean the Standard Scale of 
electrotypes as published and approved by the International Asso- 
ciation of Electrotypers September 24, 1931, or any subsequent 
reissues of same. 

Population for the purposes of this Code shall be determined by 
reference to the latest Federal Census. 

(420) 



421 
Article III — General Labor Conditions 

1. No person under sixteen years of age shall be employed in the 
industry. No person under eighteen years of age shall be employed 
at operations or occupations which are hazardous in nature or dan- 
gerous to health. 

2. No provision in this Code shall supersede any State or Federal 
law which imposes on employers more stringent requirements as to 
age of employees, wages, hours of work, or as to safet}^, healthy 
sanitary, or general working conditions, or insurance or fire protec- 
tion than are imposed by this Code. 

3. In compliance with Section 7 (a) of the Act it is provided — 

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

(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 organiza- 
tion 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. 

4. Nothing in this Code shall be construed or applied to super- 
sede or interfere with existing agreements arrived at by bona fide 
collective bargaining. 

5. Every employer shall make reasonable provision for the safety 
and health of his employees at the place and during the hours of 
their employment. 

6. Standards for safety and health shall be submitted by the Code 
Authority to the Administrator for approval Avithin three months 
after the effective date of this Code. 

7. A placard containing all the provisions of this Code relating 
to hours, wages, and employment shall be posted in a prominent 
place in the workrooms of each establishment operating under this 
Code. 

8. The Code Authority of the Industry will regulate or standardize 
conditions of employment other than hours and wages. 

Article IV — Hours or Labor 

1. No mechanical employee including proprietors, supervisors,^ 
foremen and/or others for the time actually engaged in mechanical 
work, 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 hereinafter provided. The total number of hours worked 
in any twenty-four (24) hour period sliall be continuous except for 
lunch period of not less than thirty minutes and not more than one 
hour. It is not intended that any of the foregoing provisions shall 
limit the number of days per week a plant may operate, nor the 
number of shifts per day. 



422 

2. When necessary, overtime shall be permitted, but no person shall 
work more than a total of 520 hours in any consecutive 13 weeks; 
provided that when, due to the special character of the work, or 
when suitable help is unavailablej overtime shall be permitted in 
excess of the maximum hours herein provided. Overtime shall con- 
-sist of all work performed in excess of the current daily schedule 
of working hours and maximum weekly hours, and shall be paid for 
at not less than time and one half of the employee's regular rate ; for 
work on Sundays and customarily observed holidays, at not less than 
double time. 

3. No emjjloyer shall knowingly permit any employee to work for 
any time which, when totaled with that already performed with 
another employer or employers in this Industry exceeds the maxi- 
mum permitted herein. 

4. The jjrovisions of this article shall not apply to outside sales- 
men and persons employed in a managerial or executive capacity, 
w^ho receive more thirty-five dollars ($35.00) per week, except- 
ing those engaged in the production of electrotyping and stereo- 
typing, nor to emergency maintenance and repair men, janitors, 
drivers, and delivery men, provided that such employees shall not 
'be permitted to work in excess of 48 hours per week. 

Article Y — Wages 

1. The minimum wages to be paid shall be as follows: 
Electrotype and Stereotype Journeymen, $1.00 per hour. 
Branchmen (if before June 16, 1933), $0.90 per hour. 
Laborers, $0.40 per hour. 

The minimum rate for night shifts shall be not less than 10% 
above day rate. 

2. Each establishment, with the exception of those — 

(1) Which are operating under wage agreements arrived at 
by collective bargaining; and 

(2) Those which are paying not less than the wage rates which 
they were paying on July 15, 1929— 

shall make increases in its average hourly compensation for all 
classes of skilled labor within 30 days after this Code becomes effec- 
tive, on the following basis : 

Including increases made under Section 1 of this Article, each plant 
shall increase the hourly rates to a point where (including increases 
made since July 1, 1933) they are 10 percent higher than the hourly 
rates in effect on July 1, 1933, with this limitation, that they need 
not increase rates above those paid on July 15, 1929, in the same plant 
or in similar plants in the same locality coming within the above 
•clauses (1) and (2). 

3. Within 30 days after this Code becomes effective any rate in- 
creases under Sections 1 and 2 must be further augmented, if neces- 
sary to bring the average hourly compensation paid above the com- 
pensation paid in each establishment up to 90 percent of the hourly 
rate prevailing on July 1, 1933, in the same locality, for those base 
classes of skilled labor named in the schedule set forth in Section 1 
hereof. 



1 



423 

Prevailing rates shall be the average of the hourly rates paid to 
the employees constituting that 50 percent of each class of skilled 
employees coming under this Code in that locality which was receiv- 
ing the higher hourly wage rates on July 1, 1933. For example, if in 
a locality, a total of thirty journeymen were employed, ten of whom 
were receiving $1.20 per hour and twenty of whom were receiving 
$1.05 per hour, the prevailing rate would be the weighted average of 
$1.20 for ten journeymen and of $1.05 for five journeymen (making 
together 50 percent of the total number) or $1.15, and 90 percent 
thereof would be $1,035. 

4. It is specifically understood that the foregoing provisions are 
intended to establish only minimum and not maximum wage require- 
ments. 

5. The ratio of apprentices shall be not more than one apprentice 
to three journeymen regularly employed, provided that this provi- 
sion shall not apply to apprentices employed on or before December 
1, 1933. The minimum wages for apprentices shall be based upon 
length of experience as follows; First year, 30^ per hour; second 
year, 35^ per hour; third year, 450 per hour; fourth year, 600 
per hour; fifth year. 750 per hour. AH apprentices employed by 
employers in this Industry shall be registered with the Code 
Authority. 

6. Employees not otherwise covered by this Article shall be paid 
at not less than the following rates: $15.00 per week in any city of 
over 500.000 population or in the immediate trade area of such city ; 
$14.50 per week in any city of between 250,000 and 500,000 popula- 
tion or in the immediate trade area of such city; $14.00 per week in 
any city between 2.500 and 250,000 population or in the immediate 
trade area of such city ; $12.00 per week in towns of less than 2,500 
population. No errand or messenger boy shall be paid less than 80% 
of the minimum wages specified in this section for the applicable 
area. 

Article VI — Costs 

1. The basis of estimating and pricing in the Electrotyping and 
Stereotyping Industry shall be the Standard Scale, which scale 
was adopted on September 24, 1931, or such revisions thereof as may 
from time to time be approved by the Code Authority and the 
Administrator. 

2. The principle of pricing shall be one price from any member 
to all of his customers for like services and like conditions of pro- 
duction and costs. 

3. Every electrotype and stereotype establishment shall maintain 
the Standard Cost Finding System and Standard Accounting Sys- 
tem approved by the International Association of Electrotypers and 
by the Administrator; or systems comparable therewith when ap- 
proved by the Code Authority or by the Administrator. 

4. Selling below the cost of production shall be a violation of this 
Code, provided, however, that any producer may sell at below his 
cost to meet the competition by any other producer who does not 
violate the Code. 

5. Cost of production as herein used should include all direct 
labor and material at cost or market, whichever is lower, plus a pro- 



I 



424 

portionate share of all indirect expenses, inclusive of depreciation 
and/or depletion computed according to the maximum rates of the 
Income Tax Procedure; but exclusive of any reserves for purposes 
other than depreciation, exclusive also of interest paid and develop- 
mental expenses, provided that the distribution of such indirect ex- 
penses per unit of product should be on the basis of an average rate 
of utilization of plant facilities by efficient producers during the 
period 1927-32. 

Article VII — Administration 

1. There shall be constituted a Code Authority consisting of five 
(5) persons who shall be truly representative of the employers, and 
who shall be selected by the Executive Committee of the Interna- 
tional Association of Electrotypers, 

2. In addition to membership as above provided, there may be 
three (3) members, without vote, to be appointed by the Adminis- 
trator to serve without expense to the Industry. 

3. Each trade association or group directly or indirectly partici- 
pating in the selection or activities of the Code Authority shall (1) 
impose no inequitable restrictions on membership, and (2) submit 
to the Administrator true copies of its articles of Association, 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