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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. 196-244 
AS APPROVED /, 

JANUARY 1-JANUARY 31, 1934 

WITH SUPPLEMENTAL CODES, AMENDMENTS, EXECUTIVE 

AND ADMINISTRATIVE ORDERS ISSUED 

BETWEEN THESE DATES 



VOLUME V 




WE DO OUR PART 






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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 



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•• •• • • •»• ••• 









* • • -■ •• • • T7 



CONTENTS 



Industry 



CODES OF FAIR COMPETITION 

Wholesale Food and Grocery Trade 

Retail Farm Equipment Trade 

Railway Safety Appliance 

Cork 

Sanitary Napkin and Cleansing Tissue 

Wholesaling or Distributing Trade 

Carpet and Rug Manufacturing 

Raw Peanut Milling 

Plumbing Fixtures 

Metal Window 

Feldspar 

Ball Clay Production 

Picture Moulding and Picture Frame 

Musical Merchandise Manufacturing 

Pipe Organ 

Robe and Allied Products 

Drapery and Upholstery Trimming 

Wool Trade 

Slit Fabric Manufacturing 

American Glassware 

Powder Puff 

Dental Laboratory 

Slate 

Bedding Manufacturing 

Envelope 

Metal Hat Die and Wood Hat Block 

Card Clothing 

Construction Machinery Distributing Trade 

Furniture and Floor Wax and Polish 

Smoking Pipe Manufacturing 

Light Sewing Industry Except Garments 

Wet Mop Manufacturing 

Coin Operated Machine Manufacturing 

Venetian Blind 

Paper Bag Manufacturing 

Surgical Dressings 

Merchandise Warehousing Trade 

Railway Brass Car and Locomotive Journal Bearings and 

Castings Manufacturing 

Macaroni 

Textile Processing 

Cooking and Heating Appliance Manufacturing 

Alloy Casting 

Fan and Blower 

Porcelain Breakfast Furniture Assembling 

Advertising Display Installation 

Chewing Gum Manufacturing 

Marine Auxiliary Machinery 

Slide Fastener 

Construction 



Date ap- 
proved, 
1934 



Jan. 
Jan. 



4 

6 



Jan. 12 

Jan. 12 

Jan. 12 

Jan. 12 

Jan. 12 

Jan. 12 

Jan. 13 

Jan. 13 

Jan. 16 

Jan. 16 

Jan. 16 

Jan. 16 

Jan. 16 

Jan. 16 

Jan. 16 

Jan. 16 

Jan. 16 

Jan. 16 

Jan. 17 

Jan. 22 

Jan. 22 

Jan. 23 

Jan. 23 

Jan. 23 

Jan. 23 

Jan. 23 

Jan. 23 

Jan. 23 

Jan. 23 

Jan. 23 

Jan. 23 

Jan. 24 

Jan. 26 

Jan. 27 

Jan. 27 

Jan. 29 

Jan. 29 

Jan. 30 

Jan. 30 

Jan. 30 

Jan. 30 

Jan. 30 

Jan. 30 

Jan. 30 

Jan. 30 

Jan. 31 

Jan. 31 



(in) 



IV 



CONTENTS— Continued 



AMENDMENTS 

Automobile Manufacturing, No. 2 

Retail Lumber, Lumber Products, Building Materials, and Build- 
ing Specialties, No. 1 

Bankers, No. 1 

-Wool Textile, No. 1 

Canning and Packing Machinery, No. 1 

Men's Garter, Suspender, and Belt Manufacturing, No. 1 

Plumbing Fixturers, No. 1 

SUPPLEMENTS 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 1 (For Metallic Wall Structure hidus- 
trial Subdivision) 

Cotton Textile, No. 1 (Cotton Converting) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 2 (For Hand Chain Hoist Manufac- 
turing) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 3 (For Chain Manufacturing) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 4 (For Electric Industrial Truck Man- 
ufacturing) 

EXECUTIVE ORDER 

Administration for Industrial Recovery (Authorization of Ad- 
ministrator to appoint personnel, fix compensations, and con- 
duct hearings) 



Date, 1934 



ADMINISTRATIVE ORDERS 

Temporary modification of method of computing costs for the 
Retail Lumber, Lumber Products, Building Materials, and 
Building Specialties Industry 

Temporary stay of Article XI for the Cement Industry 

Establishment and use of Official N.R.A. Bulletin Board 

Temporary approval of method of determining overhead costs 
for the Buildings Supplies Trade 

Temporary limitation of hours of machine operation in the 
Combed Sales Yarn Group of the Cotton Textile Industry 

Temporary limitation of machine operation of the Combed 
Thread Producers Group of the Cotton Textile Industry in 
respect of the production of Combed Yarn 

Temporary limitation of machine operation of the Mercerizers 
Group of the Cotton Textile Industry in respect of the pro- 
duction of Combed Yarn 

Temporary stay of Articles III, IV, and V for the Furniture 
Manufacturing Industry 

Temporary stay of Article IV, Section 3 for the Millinery 
Industry 

Regulations for registration of machinery and filing of monthly 
reports of Finishing, Thread Manufacturing, and Yarn Mer- 
cerizing Branches of the Cotton Textile Industry 

Rules and regulations concerning labels bearing Emblems or 
Insignia of the N.R.A 



Jan. 8 

Jan. 12 

Jan. 22 

Jan. 23 

Jan. 27 

Jan. 27 

Jan. 31 



Jan. 
Jan. 


10 
24 


Jan. 


30 


Jan. 


31 



Jan. 31 



July 15, 
1933 



Jan. 
Jan. 
Jan. 


5 
5 
6 


Jan. 


8 


Jan. 


10 


Jan. 


10 


Jan. 


10 


Jan. 


12 


Jan. 


12 



Jan. 15 
Jan. 17 



CONTENTS— Continued 



ADMINISTRATIVE ORDERS— Continued 

Temporary exception for members of the Retail Trade under 
Article V, Section 4 (d) and 6 

Exemption of members from certain provisions of Article XI for 

the Cement Industry, pending modification 

Further limitation of hours of Printing Machine operation in the 

Finishing Branch of the Cotton Textile Industry 

Granting limited exemption from provisions of Codes of Fair 

Competition in connection with sales to Hospitals 

Modification of emergency requirement as to limitation of 

hours of machine operation in the Carded Yarn Group of 

the Cotton Textile Industry 

Temporary limitation of hours of machine operation in the 

Wide Bed Sheeting Group of the Cotton Textile Industry 

Temporary relief under Article XI, Section (b) for the Cotton 

Garment Industry 

Further limitation of machinery operation in the Fine Goods 

Group of the Cotton Textile Industrj" 



Index. 



Date, 


1934 


Page 


Jaoi. 


18 


779 


Jan, 


23 


780 


Jan. 


23 


781 


Jan. 


23 


782 


Jan. 


23 


783 


Jan. 


23 


784 


Jan. 
Jan. 


27 

29 


785 
786 

787 









CODES OF FAIR COMPETITION 



Approved Code No. 196 
CODE OF FAIR COMPETITION 



FOR THE 



WHOLESALE FOOD AND GROCERY TRADE 

As Approved on January 4, 1934 



BY 



PRESIDENT ROOSEVELT 



Executive Order 

A Code of Labor Provisions for the Wholesale Food and Grocery 
Trade was approved by me November 15, 1933. Application is now 
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 further provisions for the Wholesale Food 
and Grocery Trade and for the incorporation of said provisions with 
provisions heretofore approved into a single Code of Fair Competi- 
tion for the Wholesale Food and Grocery Trade, to become effective 
in place of the Code of Labor Provisions heretofore approved. 
Hearings having been held and the Administrator having rendered 
his report on said Code of Fair Competition, together with his rec- 
ommendations and findings with respect thereto, and the Adminis- 
trator having found that 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 : 

NOAV, 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, and otherwise, do adopt and 
approve the report, recommendations and findings of the Adminis- 
trator and do hereby approve said further provisions for the Whole- 

28771° 296-54 33 (1) 



sale Food and Grocery Trade and do order that said Code of Fair 
Competition as submitted be and it is hereby approved, to become 
effective in place of said Code of Labor Provisions heretofore 
approved subject to the following conditions: 

(1) Section 13 of Article VII shall not be effective until 30 days 
after this code becomes effective. 

(2) Paragraph 4 of Section 12 of Article VII shall not be effective 
until 30 days after the date this code becomes effective. 

(3) The Administrator shall consider the right of the United 
States Wholesale Grocer's Association to representation on the code 
authority. 

(4) A hearing shall be called as soon as practicable for the con- 
sideration and determination of the questions referred to in the con- 
ditions hereinbefore stated. 

(5) Section 10 of Article VII is eliminated from the code. 

(6) The Administrator shall have power, upon review, to disap- 
prove any act of the code authority. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

January ^, 193]^^ 



December 12, 1933. 
The President, 

The 'White House. 

Sir: This is a report on the Code of Fair Competition for the 
Food and Grocery Wholesale Trade. 

A hearing was held on the wage and hour provisions of this Code 
by officials of the National Recovery Administration on October 5, 
1933, and approval was given to these provisions by the President 
on November 15, 1933. A hearing was held by the Agricultural 
Adjustment Administration on the fair trade provisions of the Code 
on October 9, 1933, at which the National Recovery Administration 
was represented. 

The code was presented by duly qualified and authorized repre- 
sentatives of the trade, complying with the statutory requirements, 
and said to represent 75 percent in number and 90 percent in volume 
of the trade. 

THE TRADE 

The Wholesale Food and Grocery Trade according to the Census 
of Distribution (1929) is made up of 13,994 establishments with net 
sales of $9,537,322,597. There are approximately 185,000 persons 
emploj^ed in this trade. 

It is estimated that the average work-week in the Wholesale Food 
and Grocery Trade was 60 hours, and the provisions of this code 
provide for a 44-hour work-week and should result in a reemploy- 
ment of about 15 percent. 

PROVISIONS OF THE CODE 

The Code provides for a workweek of 44 hours. Provision is 
made whereby an employer may work certain employees such hours 
as may be necessary in excess of the hours mentioned above if time 
and one third is paid for such additional hours per week. 

The rates of pay are $14.50 per week in cities of over 500,000 popu- 
lation, $14.00 per week in cities of 100,000 to 500,000 population, 
$13.00 per week in cities of 25,000 to 100,000, and $11.00 per week 
in cities under 25,000 population. 

I recommend that the price differential provision in Section 13 and 
the provision respecting transportation charges in paragraph 4 of 
Section 12 be suspended for 30 days pending further hearing. 

The United States Wholesale Grocer's Association has made repre- 
sentations as to its right to be represented on the code authority. 
The facts at hand do not permit a present determination and I sug- 
gest that this question be considered at the same hearing. 

I also recommend that the provision forbidding violations of the 
food and drugs act be eliminated. Provision in codes for jurisdic- 
tion ancillary to penal laws seems to me questionable. 

(8) 



I further recommend that the Administrator be given power, upon 
review, to disapprove any act of the code authority. 

The administration of the Code is organized in such a manner 
as to include both wholesalers and retailers. 

FINDINGS 

I find that : 

(a) This Code complies in all respects with the pertinent pro- 
visions of Title I of the Act, including without limitation subsection 
(a) of Section 7 and subsection (b) of Section 10 thereof. 

(b) The National-American Wholesale Grocers' Association, the 
Food and Grocery Chain Stores of America, National Retailer- 
Owned Wholesale Grocers, and the National Voluntary Groups In- 
stitute, presenting this Code are truly representative of the trade. 

(c) The Code is not designed to promote monopolies or to elim- 
inate or oppress small enterprises and will not operate to discrim- 
inate 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, 

Ad'mini8traio7\ 



CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE FOOD AND GROCERY TRADE 

To effect the policies of Title I of the National Industrial Recov- 
ery Act this Code is submitted as a Code of Fair Competition for 
the Wholesale Food and Grocery 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 I — Request for Separate Code 

Any division of the wholesale food and grocery trade which has 
not participated in the formation or establishment of this Code may 
make application to the Administrator to operate under a separate 
Code of Fair Competition. The Administrator shall determine 
whether such division of the wholesale food and grocery trade shall 
operate under this Code or under a separate Code, and may, if justice 
requires, stay the application of this Code to such division pending 
his decision or pending the approval by the President of the United 
States of a Code of Fair Competition for such division. 

Article II — DEriNiTioNS 

Section 1. Wholesale Food and Grocery Trade. — The term 
" wholesale food and grocery trade " or " trade " as used herein shall 
mean all selling or supplying to retailers, industrial buyers, restau- 
rants, or institutions, or the selling on the part of one wholesaler to 
another of food and/or grocery products, but shall not include the 
selling or supplying of meat products (except in cans) fish or the 
selling or supplying of fresh fruit and produce, and provided further 
the term shall not include the selling or supplying of any food or 
grocery product which is now or may hereafter be governed by a 
separate code approved by the President of the United States. It is 
further provided that the provisions hereof, other than the provi- 
sions which are mandatory under the Act and those relating to ad- 
ministration of the code, to hours of labor, rates of pay and other 
conditions of employment, shall not be deemed binding upon such 
subdivisions of the trade as shall in accordance with any Executive 
Order of the President be subject to the jurisdiction of the Secretary 
of Agriculture. 

Sec. 2. Food and Grocery Wholesaler. — The term " food and 
grocery wholesaler " or " wholesaler " as used herein shall mean any 
individual or organization engaged wholly or substantially in the 
wholesale food and grocery trade and distributing principally 
through a privately controlled warehouse. 

Sec. 3. Wholesale Food and Grocery Establishment. — The term 
" wholesale food and grocery establishment " or " establishment " as 
used herein shall mean any warehouse, office, or department of any 
other establishment where a food and grocery wholesaler carries on 

(5) 



business, other than those places where the principal business is the 
selling of merchandise at retail or the selling at wholesale of prod- 
ucts not included within the definition of wholesale food and grocery 
trade. 

Sec. 4. Employee. — The term " employee " as used herein shall 
mean any person employed by any food and grocery wholesale 
establishment, but shall not include persons employed in establish- 
ments engaged principally in the selling or handling of products 
not included within the definition of wholesale food and grocery 
trade; nor shall it include persons principally engaged in farming. 

Sec. 5. Employer. — The term " employer " as used herein includes 
anyone by whom such employee is compensated or employed. 

Sec. 6. Ultimate Consumer. — The tenn " 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. 

Sec. T. Executive. — The term " executive " as used herein shall 
mean an employee responsible for the management of a business or 
a recognized subdivision or department thereof. 

Sec. 8. Professional Person. — The term " professional person " as 
used herein shall mean research teclinicians, advertising specialists, 
and other persons engaged in occupations requiring a special disci- 
pline and special attainments. 

Sec. 9. Outside Salesmen. — The term " outside salesman " as used 
herein shall mean a salesman who is engaged not less than sixty 
(60) percent of his working hours outside the establishment, or any 
branch thereof, by which he is employed. 

Sec. 10. Outside Collector. — The term " outside collector " as used 
herein shall mean a collector of accounts who is engaged not less than 
sixty (60) percent of his working hours outside the establishment, 
or any branch thereof, by which he is employed. 

Sec. 11. Maintenance Employee. — The term " maintenance em- 
ployee " as used herein shall mean an employee who, through special 
training or mechanical ability, is essential to the upkeep and/or 
preservation of the premises and property of the establishment, and 
shall not include such workers as porters, elevator operators, janitors, 
and cleaners. 

Sec. 12. Outside Service Employee. — The term " outside service 
employee " as used herein shall mean an employee engaged primarily 
in delivering, installing, or serAacing merchandise outside the estab- 
lishment, and shall include stable and garage employees. 

Sec. 13. Watchman. — The term " watchman " as used herein shall 
mean an employee engaged primarily in safeguarding the premises 
and property of the establishment. 

Sec. 14. Junior Employee. — The term " junior employee " as used 
herein shall mean an employee under eighteen (18) years of age. 

Sec. 15. Apprentice Employee. — The term " apprentice employee " 
as used herein shall mean an employee with less than six (6) months' 
experience in the wholesale food and grocery trade. 

Sec. 16. Part-time Employee. — The term " part-time employee " 
as used herein shall mean an employee who works for less than the 
maximum work week. 

Sec-. 17. South. — The term " South " as used herein shall mean 
Virginia, West Virginia, Maryland, North Carolina, South Carolina, 



Georgia, Florida, Texas, Kentucky, Tennessee, Alabama, Mississippi, 
Arkansas, Louisiana, Oklahoma, New Mexico, and the District of 
Columbia. 

Sec. 18. Population. — Population shall be determined by reference 
to the Fifteenth Census of the United States (United States Depart- 
ment of Commerce, Bureau of the Census, 1930). 

Sec. 19. 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 the Administrator appointed under Title I of said Act. 

Article III — ErFECxn'E Date 

The provisions of this Code shall become effective on the seventh 
day after their approval by the President. 

Article IV — General Labor Provisions 

Section 1. Collective Bargaining. — (a) Employees shall have the 
right to organize and bargain collectively through representatives of 
their own choosing and shall be free from the interference, 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 ])rotection. 

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

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

Sec. 2. Child Labor. — On and after the effective date of this Code 
no person under the age of sixteen (16) years shall be employed. 

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

Article V — Operating Hours and Hours of Labor 

Section 1. Operating Hours. — ^No wholesale grocer shall operate 
on a schedule of less than fifty-two (52) hours per week, except that 
where any wholesaler was operating less than fifty-two (52) hours 
per week prior to June 1, 1933, the minimum requirement shall not 
apply nor shall such hours be reduced. 

Sec. 2. Basic Hours of Labor. — No employee, except as hereafter 
provided, shall work more than forty-four (44) hours per week, nor 
more than nine (9) hours per day, nor more than six (6) days per 
week. 

Sec. 3. Exceptions to Maximum Hours of Labor — (a) Profes- 
sional Persons:. — The maximum periods of labor prescribed in Sec- 
tion 2 of this Article shall not apply to professional persons emploj^ed 
and working at their profession. 

28771° 296 — 54— — 33 2 



8 

(b) OiUside Salesmen^ Outside Collectors^ and 'Watchmen. — The 
maximum periods of labor prescribed in Section 2 of this Article 
shall not apply to outside salesmen, outside collectors, and watchmen, 
but in no case shall such employees work more than six (6) days 
per week. 

(c) 'Outside Service and Sales Department Employees. — The 
maximum periods of labor prescribed in Section 2 of this Article 
shall not apply to outside service employees nor to billing and ship- 
ping clerks, and cashiers working in conjunction with outside service 
employees in work of such nature that any inequality of hours would 
interrupt the routine of the outside service department, but such 
employees shall not work more than forty-eight (48) hours per week 
unless they are paid at the rate of time and one third for all hours 
over forty-eight (48) hours per week. 

(d) Maintenance Employees. — The maximum periods of labor pre- 
scribed in Section 2 of this Article shall not apply to maintenance 
employees, but such employees shall not work more than forty-eight 
(48) hours per week, unless they are paid at the rate of time and 
one third for all hours over forty-eight (48) hours per week. 

(e) Executives. — The maximum periods of labor prescribed in 
Section 2 of this Article shall not apply to executives receiving not 
less than $35,00 per week. 

(f) Peak Periods. — At Christmas and other peak periods, for a 
period not to exceed two weeks in the first six months of the calendar 
year and not to exceed three weeks in the second six months, em- 
ployees may work not more than fifty-two (52) hours per week and 
ten (10) hours per day. 

For inventory purposes employees may work during one week in 
each calendar year (8) hours in excess of the maximum hours pre- 
scribed in Section 2 of this Article. 

All such work may be without the payment of overtime. 

Sec. 4. Hours of Work to he Consecutive. — The hours worked by 
any employee during each day shall be consecutive, provided that an 
interval not longer than one hour may be allowed for each regular 
meal period, and such interval need not be counted as part of the 
•employee's working time. Any rest period which may be given em- 
ployees shall not be deducted from such employee's working time. 
In communities where a longer lunch period has been customary any 
establishment may, with permission of the Local Food and Grocery 
Authority, allow employees a longer period than one hour for lunch 
but such period shall in no event exceed one and one half hours. 

Sec. 5. Extra Working Hour One Day a Week. — On one day each 
week, employees may work one extra hour, but such hour is to be 
included within the maximum hours permitted each week. 

Sec. 6. Co7iflict with State Laws. — When any State law prescribes 
for any class of employees shorter hours of labor than those pre- 
scribed in this Article, no employee included within such class shall 
be employed within such State for a greater number of hours than 
such State law allows. 

Sec. 7. Agreement for Uniformity of Store Hours. — Any whole- 
sale trade area containing ten (10) or more wholesale grocers, within 
a town or city, may by mutual agreement of two thirds (%) of its 
wholesale grocery, subject to the approval of the Administrator, es- 



tablish uniform operating hours which shall be binding upon all 
wholesale grocers within such area. 

Article VI — Wages 

Section 1. Basic Schedule of Wages. — On and after the effective 
date of this Code, the minimum weekly rates of wages which shall 
be paid for a work week, as specified in Article V, whether such 
wages are paid upon an hourly, weekly, monthly, commission, or 
any other basis shall, except as provided hereafter, be as follows : 

(a) Within cities of over 500,000 population, no employee shall be 
paid less than at the rate of $14.50 per week for a forty-four (44) 
hour w^ork week, or less than at the rate of $15 per week for a 
forty-eight (48) hour work week. 

(b) Within cities of from 100 000 to 500,000 population, no em- 
ploj'ee shall be paid less than at the rate of $13.50 per week for a 
forty-four (44) hour work week, or less than at the rate of $14 per 
week for a forty-eight (48) hour work week. 

(c) Within cities of from 25,000 to 100,000 population, no em- 
ployee shall be paid less than at the rate of $12.50 per week for a 
forty-four (44) hour work week, or less than at the rate of $13 per 
week for a fortj'-eight (48) hour work week. 

(d) Within cities, towns, villages under 25,000 population, the 
wages of all classes of emploj^ees shall be increased from the rates 
existing on June 1, 1933, by not less than twenty (20) percent, 
provided that this shall not require an increase in wages to more than 
the rate of $11 per week, and provided further that no employees 
shall be paid less than at the rate of $10 per week. 

(e) The minimum wages of professional persons, outside collectors, 
watclmien, maintenance and outside service employees shall be upon 
the basis of a fortj'-eight (48) hour employee work week. 

Sec. 2, Outside Salesmen. — The minimum wages specified above 
shall not apply to outside salesmen, when employed on a commission 
basis. 

Sec. 3. Juniors and Apprentices. — Junior employees and ap- 
prentice employees may be paid at the rate of $1 less than the mini- 
mum wage otherwise applicable. It is provided, however, that no 
individual employee shall be classified as both a junior and an 
apprentice employee, and it is further provided that the number of 
employees classified as junior and apprentice employees combined 
shall not exceed a ratio of one such employee to every five (5) em- 
ployees or fraction thereof up to twenty (20), and one such em- 
ployee for every ten (10) employees above twenty (20). 

Sec. 4. Employees Physically Incapacitated. — Employees who are 
physically incapacitated may, of their own volition, waive their 
right to minimum wages, but no employer shall employ such workers 
at less than the rate of $8 per week, and no employer shall include 
within the classification of physically incapacitated employees more 
tlian one employee for every twenty (20) employees, or fraction 
thereof. 

Sec. 5. Part-time Employees. — Part-time employees shall be paid 
not less than at an hourly rate proportionate to the rates specified 
in the foregoing Sections of this Article. 



10 

Sec. 6. Southern Wage Differential. — In the South all minimum 
wages specified in the foregoing Sections may be at the rate of $1 
less per week. 

Sec. 7. 'Weekly Wages Above MinimuTn not to he Reduced. — The 
weekly wages of all employees receiving more than the minimum 
wages specified in this Article shall not be reduced below the rates 
existing on June 1, 1933, notwithstanding any reduction in tha 
number of working hours of such employees. 

Sec. 8. Conf.ict with State Laws. — When any State law pre- 
scribes for any class of emploj^ees of either sex a higher minimum 
wage than that prescribed in this Article, no employee of such class 
of either sex employed within that State shall be paid less than 
such State law requires. 

Article VII — Trade Practices 

Section 1. Inaccurate Advertising. — No food and grocery whole- 
saler shall publish advertising (whether printed, radio, display, or 
of any other nature) which is misleading or inaccurate in any ma- 
terial particular, nor shall any wholesale grocer in any way mis- 
represent any goods including but without limitation, their use, 
trade mark, grade, quality, quantity, origin, size, substance, char- 
acter, nature, finish, material, content, or preparation, or credit 
terms, values, policies, services, or the nature or form of the business 
conducted. 

Sec. 2. Price Discri^nination. — Discrimination in prices or terms 
of sale against purchasers of the same quantity under the same con- 
ditions of delivery and credit services for the same class of buyers 
(taking into consideration the service rendered by the seller or re- 
quired from the buyer) is prohibited. Locality or sectional price dis- 
crimination which is designed or effective to unduly injure com- 
petitors is further prohibited. 

Sec. 3. Limitation Upon Price Increases. — No food and grocery 
wholesaler shall increase the price of any merchandise sold after the 
effective date of this Code over the price existing June 1, 1933, by- 
more than is made necessary by the amount of increases in produc- 
tion, operating, replacement, and/or invoice costs of merchandise, 
and/or by taxes or other costs resulting from action taken pursuant 
to the National Industrial Recovery Act and/or the Agricultural 
Adjustment Act since June 1, 1933, and in setting such price in- 
creases wholesalers shall give full weight to probable increases in 
sales volume. It is provided, however, that if any price on June 1,, 
1933, was a distress price, an equitable adjustment may be made. 

Sec. 4. Unearned Service Payments. — No food and grocery whole- 
saler shall pay a trade buyer for a special advertising or other dis- 
tribution service by such buyer (a) except in pursuance of a written 
contract made in good faith and explicitly defining the service to be 
rendered and the payment for it; and (b) unless such service is 
rendered and such payment is reasonable and not excessive in 
amount; and (c) unless such contract is separate and distinct from 
any sales contract and such payment is separate and distinct irom 
any sales price and is not designed or used to reduce a sales price; 
and (d) unless such payment is equally available for the same service 
to all competitive trade buyers in the same competitive market; and 



n 

(e) unless a copy of each such contract is retained on file for a 
period of one year. In order to investigate alleged violations of 
this Code, the Administrator may require a food and grocery whole- 
saler to report such contracts made by him and/or to produce a copy 
thereof for inspection. 

Sec. 5. Unearned Discounts for Cash. — No food and grocery whole- 
saler shall allow or accept a discount for cash which is not earned 
by payment in accordance with the cash discount terms published 
or used by the seller with respect to other food and grocery whole- 
salers. 

Sec. 6. Compulsory Purchases. — No food and grocery wholesaler 
shall compel a buyer to purchase one product in order to purchase 
or obtain another. 

Sec. 7. Commercial Bribery. — No food and grocery wholesaler 
shall give, permit to be given, or directly offer to give, anything of 
value for the purpose of influencing 'or rewarding the action of any 
emplo3'^ee, 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. The provision shall not be construed to pro- 
hibit free and general distribution of articles commonly used for 
advertising except so far as such articles are actually used for com- 
mercial bribery as hereinabove defined. 

Sec. 8. Unfair Suhstitution. — No food and grocery wholesaler 
shall unfairly substitute another product for that ordered from him. 

Sec. 9. Inaccurate Lahelling. — No food and grocery wholesaler 
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. 

Sec. 10. Violation of Federal Food and Drugs Act. — No food and 
grocery wholesaler shall knowingly sell a commodity adulterated or 
misbranded in violation of the Federal Food and Drufi:s Act.* 

Sec. 11. Inaccurate References to Competitors., etc. — No food and 
grocery wholesaler shall publish advertising which refers inaccu- 
rately in any material particular to any competitor or his goods, 
prices, values, credit terms, policies, or services. 

Sec. 12. Loss Limitation Provision. — In order to prevent unfair 
competition against local merchants, selling merchandise at less than 
cost, except to other food and grocery wholesalers, is hereby declared 
to be an unfair trade practice. This practice results, of course, either 
in efforts by the merchant to make up the loss by charging more than 
a reasonable profit for other articles, or else in driving the small mer- 
chant with little capital out of legitimate business. It works back 
against the producer of raw materials on farms and in industry and 
against the labor so employed. 

1. This declaration against selling at less than cost does not pro- 
hibit a merchant from selling an article without any profit to him- 
self. But the selling price of articles to the customer should include 
an allowance for actual wages of labor, to be fixed and published 
from time to time by the Administrator and the members of the 
Code Authority appointed by the Administrator in accordance with 
the provisio ns of Article Vlll, Section 1, herein. 

• Deleted as per paragraph 5 of Executive Order approving this Code. 



12 

2. The cost of merchandise shall include the net purchase price 
plus transportation charges to the seller's warehouse and transporta- 
tion charges from the wholesaler to his customer, when such charges 
are paid by the wholesaler. 

3. The Code Authority, subject to the approval of the Adminis- 
trator, shall prescribe the method and conditions by which " net 
purchase price " shall be determined by the individual wholesaler. 
Such action of the Code Authority shall be taken within thirty 
days after the effective date of this Code. 

4. " Transportation charges from the wholesaler to his customer " 
shall mean transportation charges to point of delivery; provided, 
however, that no transportation charges need be added on hauls 
under twenty-five miles. On all hauls of twenty-five miles or over 
the transportation charge as herein mentioned shall be the lowest 
published rate by or for any common carrier. 

Notwithstanding the provisions of the foregoing paragraphs, any 
food and grocery wholesaler may sell any article of merchandise 
at a price as low as the price set by any competitor in his trade 
area on merchandise which is identical or essentially the same, if 
such competitor's price is set in conformity with this provision. A 
food and grocery wholesaler who thus reduces a price to meet a 
competitor's price, as above defined, shall not be deemed to have 
violated the provisions of this Section- if such wholesaler immedi- 
ately notifies the Food and Grocery Distributors' Code Authority 
of such action and all facts pertinent thereto. 

Notwithstanding the provisions of the foregoing paragraphs, any 
food and grocery wholesaler may sell at less than the prices specified 
above, merchandise sold as bona fide clearance, if advertised, marked, 
and sold as such; highly perishable merchandise, which must be 
promptly sold in order to forestall loss; imperfect or actually dam- 
aged merchandise, or bona fide discontinued lines of merchandise, if 
advertised, marked, and sold as such; merchandise sold upon the 
complete final liquidation of any business; merchandise donated for 
chfiritable purposes or to unemploj^ment relief agencies. 

Sec. 13. Di-fferentidls. — ^Where manufacturers, importers, mills, or 
other primary sellers sell coincidentally to wholesalers and retailers, 
the Code Authority, subject to the approval and with the advice oi 
the Administrator, maj^ arrange for a conference of all interested 
parties, including primarj' sellers or the Code Authority governing 
them, either through the medium of the hereinafter designated Food 
and Grocery Industry Conference Committee, or as otherwise pro- 
vided in this Section, for the purpose of defining and establishing 
price differentials which shall be fair and reasonable in relation to 
the nature and extent of the distributing services and functions ren- 
dered by each buying class. Such differentials shall include all ele- 
ments affecting the net price, such as discounts, tenns, and allowances. 

The Code Authority, or if so determined, the Food and Grocery 
Industry Conference Committee, with the advice and consent of the 
Administrator and after all interested parties shall have been given 
an opportunity to be heard on the matter, shall formally announce 
the price differentials which are deemed fair on specific products. 



13 
Nothin<T in this Section shall be construed to abridge the right of 



manufacturers to sell direct to retailers or the right of retailers to 
buy direct from manufacturers. 

Nothing in this Section shall be construed to prevent reasonable 
and fair price differentials from being allowed on the basis of quan- 
tity purchased or such other factors as the Administrator shall deem 
proper. 

Sec. 14. Prison-Made Goods. — Pending the formulation of a com- 
pact or code between the several States of the United States to in- 
sure the manufacture and sale of prison-made goods on a fair com- 
petitive basis with goods not so produced, the following provisions: 
of the Section will be stayed for ninety (90) days, or further at 
the discretion of the Administrator : 

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

(b) Except as provided in the foregoing paragraph, no food and' 
grocery wholesaler shall knowingly buy or contract to buy any mer- 
chandise produced in whole or in part in a penal, reformatory, or- 
correctional institution. After May 31, 1934, no food and grocery 
wholesaler shall knowinglj^ sell or offer for sale such merchandise^ 
Nothing in this Section, however, shall affect contracts, which the 
wholesaler does not have the option to cancel, made with the respect 
to such merchandise before the approval of this Code by the Presi- 
dent of the United States. 

(c) Nothing in this Section shall be construed to supei^sede or in- 
terfere with the operation of the Act of Congress approved January 
19, 1929, being Public, No. 669, of the 70th Congress and entitled 
"An Act to Divest Goods, Wares, and Merchandise Manufactured^ 
Produced or Mined by Convicts or Prisoners of their Interstate 
Character in Certain Cases ", which Act is known as the Hawes- 
Cooper Act, or the provisions of any State legislation enacted under- 
or effective upon, the effective date of the said Hawes-Cooper Act^ 
the said effective date being January 19, 1934. 

Article VIII — Administration 

Section 1. National Food and Grocery Distrihittors'^ Code Au-^ 
thority — (a) Composition. — A National Food and Grocery Dis- 
tributors' Code Authority shall be established in accordance with 
the provisions of this Article and the provisions of the Code of Fair- 
Competition for the Retail Food and Grocery Trade to cooperate 
with the Administrator in the joint administration of this Code and 
of the Code for the Retail Food and Grocery Trade. Such Code 
Authority shall consist of one member, elected by a fair method of 
selection approved by the Administrator, by each of the national 
wholesale food and grocery trade associations presenting this Code,, 
one member similarly elected from any other association which the: 



u 

Administrator upon application shall recognize as representing an 
important branch of the wholesale food and grocery trade, and such 
other members as may be elected from the retail food and grocery 
trade in accordance with the Code of Fair Competition for such 
trade approved by the President. 

The Administrator may appoint a member or members, who may 
participate without vote in all activities of the Code Authority. 

(b) General Powers. — The National Food and Grocery Distribu- 
tors' Code Authority shall represent the wholesale food and grocery 
trade in the administration of this Code, and shall have, in addition 
to the specific powers herein conferred, all general powers necessary 
to assist the Administrator or his deputy in such administration. 

(c) Beports. — The National Food and Grocery Distributors' Code 
Authority, subject to the approval or upon the request of the Admin- 
istrator, shall require from all food and grocery wholesalers such 
reports as are necessary to effectuate the purposes of this Code. Each 
food and grocery wholesaler shall keep a record of his business 
transactions by such an accounting system as will inform him of the 
essential particulars of his business, including records of purchase 
invoices and of hours worked by, and wages paid to, all employees. 

(d) Recomniendations. — The National Food and Grocery Distrib- 
utors' Code Authority may from time to time present to the 
Administrator recommendations, based on conditions in the trade, 
which will tend to effectuate the operation of the provisions of this 
Code and the policy of the National Industrial Recovery Act. Such 
recommendations shall, upon approval by the Administrator, become 
operative as part of this Code. 

(e) State and Local Code Authorities. — The National Food and 
Grocery Distributors' Code Authority shall, subject to the approval 
of the Administrator, supervise the setting up of State and Local 
Code Authorities for the purpose of assisting in the administration 
of this Code within States and local trading areas. 

(f) Expenses. — The expenses of the administration of this Code 
shall be equitably assessed and collected by the Code Authority, 
subject to the approval of the Administrator. 

Sec. 2. Food and Grocery Industry Conference Gomrrdttee. — The 
National Food and Grocery Distributors' Code Authority shall 
appoint representatives to serve on a Food and Grocery Industry 
Conference Committee to be composed of representatives from food 
and grocery manufacturers and from food and grocery wholesalers 
and retailers. The Food and Grocery Industry Conference Com- 
mittee shall act as a planning and coordinating agency for the entire 
food and grocery trade. 

Sec. 3. Interpretations. — The Administrator may from time to 
time, after consultation with the National Food and Grocery Dis- 
tributors' Code Authority, issue such administrative interpretations 
of the various provisions of this Code as are necessary to effectuate 
its purposes. 

Sec. 4. Exceptions in Gases of Unusual or Undue Hardships. — 
Where the operation of the provisions of this Code imposes an 
unusual or undue hardship upon any food and grocery wholesaler or 
group of wholesalers, such wholesaler or group of wholesalers may 



15 

make application for relief to the Administrator or to his duly 
authorized agent, and the Administrator or his agent may, after such 
public notice and hearing as he may deem necessary, grant such excep- 
tions to or modification of the provisions of this Cogle may be re- 
quired to effectuate the purposes of the National Industrial Recovery 
Act. 

Article IX — General 

Section 1. ISIembership in the national food and grocery whole- 
sale associations represented upon the National Food and Grocery 
Distributors' Code Authority shall be open to all wholesalers of that 
branch of the wholesale food and grocery trade which said associa- 
tions respectively represent, and said associations shall impose no 
inequitable restrictions upon admission to membership therein. 

Sec, 2. In addition to the information required to be submitted to 
the National Food and Grocery Distributors' Code Authority, there 
shall be furnished to g-overnment agencies such statistical infurma- 
tion as the Administrator may deem necessary tor the purposes re- 
cited in Section 3 (a) of the National Industrial Recovery Act. 

Sec. 3. The provisions of this Code shall not be interpreted or 
applied to promote monopolies or monopolistic practices or to elimi- 
nate or oppress small enterprises or to discriminate against them. 

Sec. 4. No food and grocery wholesaler shall use any subterfuge 
to frustrate the spirit and intent of this Code, which is, among other 
things, to increase employment, to shorten hours of work, and to 
raise wages to a living basis. 

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 Section 10 (b) of Title I of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, 
approval, license, rule, or regulation issued under Title I of said Act. 

Sec. 6. Such of the provisions of this Code as are not required to 
be included herein by the National Industrial Recovery Act may, 
with the approval of the President, be modified or eliminated as 
changes in conditions or experience may indicate. It is contem- 
plated that from time to time supplementary provisions to this Code, 
or additional codes, will be submitted for the approval of the Presi- 
dent to prevent unfair competitive practices and to effectuate the 
other purposes and policies of Title I of the National Industrial 
Recovery Act. 

Approval Code No. 196. 
Registry No. 123-3-10. 

o 



Approved Code No. 197 

CODE OF FAIR COMPETITION 

FOR THE 

RETAIL FARM EQUIPMENT TRADE 

As Approved on January 6, 1934 



ORDER APPROVING CODE OF FAIR COMPETITION FOR 
THE RETAIL FARM EQUIPMENT TRADE 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June IG, 1933, for approval of the Code of 
Fair Competition for the Retail Farm Equipment Trade, and hear- 
ings having been duly held thereon ; and an analysis, report, recom- 
mendation and findings on said Code by the Administrator directed 
to the President having been made, which are incorporated herein 
b}^ reference; and it being found that said Code complies in all 
respects with the pertinent provisions and will promote the policy 
and purposes of Title I of said Act, and specifically that the re- 
quirements of Clauses (1) and (2) of Subsection (a) of Section 3 
of said Act have been met : 

NOW, THEREFORE, pursuant to the authority vested in the 
President by Title I of the National Industrial Recovery Act, ap- 
proved June 16, 1933, and otherwise ; and pursuant to authority 
vested in the undersigned Administrator for Industrial Recovery 
by Executive Orders, including Order dated December 30, 1933, and 
otherwise; it is ordered that the said Code of Fair Competition bo 
and it hereby is approved in the name of the President. 

The President of the United States of America, 
By Hugh S. Johnson 

Ad7ninist7'ator for Iiidustrial Recovery, 

Approval recommended : 
Malcolm Muir 

Division A chninistrator, 
Washington, D.C, 

January 6, 1934-. 

31344° 313-33 34 (17) 



The President, 

The 'White House. 

Sir: This is a report on the Code of Fair Competition for the 
Retail Farm Equipment Trade of the United States, the hearing 
having been held in Washington October 17, 1933, in accordance 
with the provisions of the National Industrial Recovery Act. 

PROVISIONS ON HOURS AND WAGES 

The distribution of farm equipment is made, to a large extent, 
through retail hardware dealers who are operating under the terms 
of the Retail Code. It is, therefore, essential that the provisions for 
hours and wages be identical with tlie Retail Code except for addi- 
tional provisions for overtime during crop failure which create a 
real emergency and for the employment of superannuated or par- 
tially disabled employees. 

ECONOMIC EFFECT OF THE CODE 

The reduction in hours will show an increase of approximately 15 
percent in number of employees with a consequent increase in pay- 
roll. The adoption of the minimum wage rate will also be pro- 
ductive of increases in many communities where employees have be^n 
decidedly underpaid. 

Approximately twenty thousand employees are regularly engaged 
in the trade, serving rural communities through 12,000 implenient 
and hardware stores located in these rural trade areas. 

Total sales of equipment through members of the trade amounted 
to $519,000,000 in 1929. It is a trade so closely identified with 
agricultui-e that planting and harvest periods coupled with emer- 
gency crop failures constitute peak periods. 

Increased employment will be effected largely through the addi- 
tion of part-time emploj^ees during the peak seasons. It is estimated 
that approximately three thousand part and full time employees 
will be added and that payrolls will be increased by at least $300,000 
yearly as a result of the application of the Code to the trade. 

It will be noted that although members of the trade in towns or 
trade areas of less than 2,500 population and employing less than 
five persons are exempt from the hour and wage requirements of 
the code, the application of all other provisions is universal to all 
the trade. 

FINDINGS 

I find that — 

(a) The Code will promote the policies and purposes of Title I of 
the Act, including removal of obstructions to the free flow of inter- 

(18) 



19 

state and foroio^n commerce which tend to diminish the amount 
thereof and will provide for the general welfare by promoting the 
organization of industry for the purpose of cooperative action among 
trade groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanctions and supervision, 
by eliminating unfair competitive practices, by promoting the full- 
est possible utilization of the present productive capacity of indus- 
tries, by avoiding undue restriction of production (except as may 
be temporarily required), by increasing the consumption of indus- 
trial and agricultural products through increasing purchasing power, 
by reducino; and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Trade normally employs less than 50,000 employees ; and 
is not classified by me as a major industry. 

(c) The Code as revised complies in all respects with the pertinent 
provisions of Title I of the Act, including without limitation Sub- 
section (a) of Section 3, Subsection (a) of Section 7, and Subsection 

(b) of Section 10 thereof; and that the Retail Farm Equipment 
group was and is a trade group truly representative of the aforesaid 
Trade; and that said group imposes no inequitable restrictions on 
admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 

For these reasons, this Code has been approved by me. 
Respectfully, 

Hugh S. Johnson, 

Administi^ator, 
Washington, D.C, 

Januainj 6^ lOSJf.. 



CODE OF FAIR COMPETITION 

FOR THE 

RETAIL FARM EQUIPMENT TRADE 

Article I — Purpose 

To effectuate the policies of Title I of the National Industrial 
Kecovery Act, the following provisions are submitted as a Code of 
Fair Competition for the retail farm-equipment trade, and, upon 
approval of the Administrator, shall be the standard of fair compe- 
tition for such trade, and shall be binding upon every member 
thereof. 

Article II — Definitions 

(a) The term " retail farm-equipment trade " as used herein, in- 
cludes distributing at retail of all equipment and repair parts for 
the operation, upkeep, and development of the farm, including rais- 
ing, harvesting, and storing of crops, dairying, stock, and poultry 
raising, or any other agricultural pursuit. 

(b) The qualifications of a " dealer " are that he shall have a 
suitable place of business vrith an adequate stock to serve the com- 
munity in which he operates; shall have the proper means commen- 
surate with the volume of business in that commmiity of displaying 
goods in current demand ; shall carry a reasonable supply of rej^airs 
properly to serve his customers; shall have a sufficient investment in 
nis business that he may be able to perform the duties above out- 
lined ; and furnish the usual legitimate service necessary properly to 
promote his business and conduct his affairs upon such a basis as 
will assure permanency of business relationship. 

Nothing in this section (b) shall be construed to exclude in any 
way as a member of the trade and/or from the operation of this code 
anyone who distributes at retail equipment and/or repair parts for 
the operation, upkeep, and development of the farm, as defined in 
section (a) of this Article II. 

(c) The term " employee " as used herein, is anyone engaged in 
the trade in any capacity receiving compensation for his services, 
irrespective of the nature, or method of payment, of such compen- 
sation. 

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

(e) The term " member of the trade " includes anyone, including 
individuals, firms, coopartnerships, corporations, cooperative asso- 

(20) 



21 

ciations, commission agencies, agents, contract dealers, and manu- 
facturers' retail store representatives and all other legal entities 
engaged in the trade. 

(f ) The t€rms " President ", "Act ", and "Administrator ", as used 
herein shall mean, respectively, the President of the United States, 
the National Industrial Recovery Act, and the Administrator for 
Industrial Recovery under Title I of said Act. 

(g) The term " South " as used herein shall mean Virginia, West 
Virginia, Maryland, North Carolina, South Carolina, Georgia, 
Florida, Kentucky, Tennessee, Alabama, Mississippi, Arkansas. 
Louisiana, Oklahoma, New Mexico, Texas, and the District oi 
Columbia. 

(h) Population shall be determined by reference to the 1930 Fed- 
eral Census. 

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

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

Article III — Membership 

(a) Membership in the Federation of Implement Dealers' Asso- 
ciations of the United States is and shall be open to any dealer 
engaged in the distribution at retail of farm equipment and repair 
parts as defined above, through membership in an affiliated associa- 
tion, or through individual membership. 

(b) No inequitable restrictions on admission to membership are or 
may be imposed by the Federations or any of their constituent asso- 
ciations hereinbefore or hereinafter referred to. 

(c) Membership by a dealer in the Federations of Implement 
Dealers' Associations of the United States, or any of their constituent 
associations shall not be requisite for the purchase of farm equipment. 

Article IV — Administration 

(a) Immediately^ following the effective date of this Code as pro- 
vided in Article XIV, the Administrator shall appoint a tem- 
porary Code Authority which shall consist of six members, three of 
whom shall be appointed from the members of the Code Committee 
of the National Farm Implement Dealers' Association and three 
from the Code Committee of the Eastern Federation of Farm Equip- 
ment Dealers, and not more than three members, without vote, to 
represent the Administrator or such groups or interests as may be 
agreed upon. Such temporary Code Authority so established shall 
serve for a period of not to exceed sixty days immediately following 
the said effective date of the Code and shall have all the powers, 
duties, and obligations herein provided for the Central Code 
Authority. 



22 

(b) Within sixty daj^s immediately following the effective date 
of the Code, as provided in xirticle XIV, the permanent Central 
Code Authority shall be organized and constituted to succeed to 
all the powers, duties, and obligations of the temporary Code 
Authority provided in Section (a) of this Article. The Central Code 
Authority shall consist of one member from each constituent associ- 
ation of the Federations of Implement Dealers Associations of the 
United States, to be elected by the respective associations, each mem- 
ber to have equal vote, and not to exceed seven additional members to 
be elected by members of the trade who are nonmembers of the 
Federations and who have agreed to conform with the provisions of 
and bear their reasonable share of the cost of administering the Code, 
each said nonmember to have equal vote. The Administrator may 
appoint not more than three members of said Central Code Authority, 
without vote, to represent him or such groups or interests as may be 
agreed upon. 

(c) Members of the trade shall be entitled to participate in and 
share the benefits of the activities of the Code Authority and to par- 
ticipate in the selection of the members thereof by assenting to and 
complying with the requirements of this Code, and sustaining their 
reasonable share of the expenses of its creation and administration. 
The reasonable share of the expense of creation 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 
factors as may be deemed equitable to be taken into consideration. 

(d) The Central Code Authority shall have the following duties 
and powers to the extent permitted by this Act, subject to the ri^ht 
of the Administrator on review to approve or disapprove any actaon 
taken by the said Central Code Authority. 

The Central Code Authority shall be charged with the administra- 
tion of the provisions of this Code, and with the duties thereof, 
through agents or otherwise; of conducting hearings and adjusting 
complaints, considering proposals for amendments to this Code, 
making recommendations thereon, and otherwise administering its 
provisions. 

The Central Code Authority shall elect from its membership an 
Executive Committee of five members, with representation thereon 
from each division. 

Because of the wide variance in a^cultural conditions and prac- 
tices of the eastern and western sections of the United States, there 
are hereby created for the purpose of administration the following 
divisions : 

The Eastern Division of the Federations is comprised of the 
following constituent associations : 

New England Farm Equipment Dealers' Association 
New York Farm Equipment Dealers' Associatlou 
Eastern Farm Equipment Dealers' Association 
Virginia Farm Equipment Dealers' Association 
North Carolina Farm Equipment Dealers' Association 
Western Pennsylvania Farm Equipment Dealers' Association 



3 



The Western Division of the Federations is comprised of the 
following constituent associations : 

Western Retail Implement and Hardware Association 

Minnesota Implement Dealers' Association 

Iowa Implement Dealers' Association 

Wisconsin Implement Dealers' Association 

Michigan Farm Equipment Association 

Illinois Implement Dealers' Association 

North Dakota Implement Dealers' Association 

South Dakota Implement Dealers' Association 

Mississippi Valley Farm Equipment Association 

Mid-West Implement Dealers' Association 

Pacific Northwest Hardware and Implement Association 

Indiana Implement Dealers' Association 

Kentucky Hardware and Implement Association 

Mountain States Hardware and Implement Association 

Oregon Retail Hardware and Implement Association 

California Retail Hardware and Implement Association 

Panhandle Hardware and Implement Association 

Idaho Retail Hardware and Implement Association 

Montana Implement and Hardware Association 

Ohio Implement Dealers' Association 

Texas Hardware and Implement Association 

The Executive Committee shall appoint a managing director for 
each of the two divisions, eastern and western, each such managing 
director to appoint his own assistants and define the territory to be 
served b}' each director. 

The Executive Committee shall also appoint a board of three 
members of the Central Code Authority from each of the two di- 
visions, each such board to act in a strictly advisory capacity to the 
managing director of its ow^n division. 

The Central Code Authority may establish other divisions and 
define the territory to be served by each, and such divisions shall 
be accorded representation on the Central Code Authority. 

For the administration of this code in each division or subdivision 
of the association, the Central Code Authority shall appoint appro- 
priate agencies and delegate to them all necessary power and au- 
thority for the administration of this code within each division and 
subdivision. 

(e) To obtain from members of the trade 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 an}?^ government agency. No indi- 
vidual reports shall be disclosed to any other member of the trade 
or any other party except to such governmental agencies as may be 
directed by the Administrator. 

31344° 313-33 34 2 



24 
Article V — Maximuim Working Hours 

Section 1. On and after the effective date of this Code establish- 
ments in the retail trade shall elect to operate upon one of the fol- 
lowing schedules of hours of labor. 

(a) Any establishment may elect to remain ojsen for business less 
than fifty-six (56) hours but not less than fifty-two (52) hours per 
week, unless its store hours were less than fifty-two (52) hours prior 
to June 1, 1933, in which case such establishment shall not reduce its 
store hours; no employee of an establishment electing to operate in 
accordance with this Section (a) shall work more than forty (40) 
hours per week, nor more than eight (8) hours per day, nor more 
than six (6) days per week, 

(b) Any establishment may elect to remain open for business fifty- 
six (56) hours or more per week but less than sixty-tiiree (63) hours 
per week; no employee of such establishment shall work more than 
forty-four (44) hours per week, nor more than nine (9) hours per 
day, nor more than six (6) daj^s per week. 

(c) Any establishment may elect to remain open for business 
sixty-three (63) liours or more per week^ no employee of such es- 
tablishment shall work more than forty-eight (48) hours per week, 
nor more than ten (10) hours per clay, nor more than six (6) daj^s 
per week. 

No employee shall work for two or more establishments a greater 
number of hours, in the aggregate, than he would be permitted to 
work for that one of such establishments which operates upon the 
schedule of fewest operating hours. 

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

Sec. 2. On or within one week after the effective date of this Code 
every retail establishment shall desigTiate under which of the Groups 
set forth in the preceding Section 1 it elects to operate and shall post 
and maintain in a conspicuous place in the establishment a copy of 
such election showing its store hours and emploj^'ee working hours. 

Sec. 3. (a) No establishment may change from the Group in which 
it has elected to operate except upon December 31 of any year. 

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

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

Sec. 4. (a) Professional persons, outside salesmen, outside col- 
lectors, field and repair service msn, and waichnien. — Tlie maximum 
period of labor prescribed in Section 1 of this Article shall not apply 
to professional persons emploj^ecl and working at their profession, or 
to outside salesmen, outsicle collectors, field and repair service men, 
and watchmen. 

(b) Maintenance and outside service employees. — The maximum 
periods of labor prescribed in Section 1 of this Article shall not apply 



25 

to maintenance and outside service employees; but such employeeg 
shall not worlv more than six (6) hours per week above the maxi- 
mum hours per v\-eek otherwise prescribed by Section 1 unless they 
are paid at the rate of time and one-third for all hours over such 
additional six (6) hours per week. 

(c) Executives. — Subject to the conditions set forth in Section 5 
of this Al tide, executives receiving $35.00 or more per week in cities 
of over 5( 0,000 population, or receiving $30.00 or more per week in 
cities of i 00,000 to 500,000 population, or receiving $27.50 or more 
per week in cities of 25,000 to 100,000 population, or receiving $25.00 
or more per week in cities, towns, villages, and other places under 
25,000 population, ma}- work in excess of the maximum periods of 
labor prescribed in Section 1 of this Article. In the South, execu- 
tives paid not less than ten (10) percent below the wages so specified 
may Avork in excess of such maximum periods. 

(d) Peak periods. — At harvest, inventory, and other peak times, 
for a period not to exceed two (2) weeks in the first six (6) months 
of the calendar year and not to exceed three (3) weeks in the second 
six (6) months, an employee whose basic workweek is forty (40) 
hours may work not more than fortj'-eight (48) hours per week and 
nine (9) hours per day; an employee whose basic workweek is forty- 
four (44) hours may work not more than fifty-two (52) hours per 
week and nine and one half (9i^) hours per day; an employee whose 
basic workweek is forty-eight (48) hours may work not more than 
fifty-six (56) hours per week and ten (10) hours per day. All such 
work may be without the payment of overtime. 

Sec. 5. In case of crop failure or the destruction of crops by hail, 
black rust, or pests, such as boll weevil, Hessian fly, grasshoppers, 
corn borer, chinch bugs and the like, creating an abnormal demand 
for equipment for replanting or reseeding to other crops, any em- 
ployee may be permitted to work more than eight (8) hours per day 
{.t the regular daily rate of ]Day. 

Sec. 6. Notwithstanding the provisions of the foregoing sections of 
this Article, and regardless of the number of persons otherwise per- 
mitted to work unrestricted hours, the total number of workers in 
any establishment (whether such workers are executives, proprietors, 
partners, persons not receiving monetary wages, or others) v/ho shall 
be permitted to work unrestricted hours shall not exceed the following 
ratio: In establishments comprised of twenty (20) workers or less 
the total number of workers who may work unrestricted hours (not 
ijicluding those workers specified in Section 4 (a) of this Article) 
shall not exceed one worker for every five (5) workers or fraction 
thereof; in establishments comprised of more than twenty (20) 
workers the total number of workers who may work unrestricted 
hours (not including those workers specified in Section 4 (a) of this 
Article) shall not exceed one worker for every five (5) workers for 
tbe first twenty (20) workers, and shall not exceed one worker for 
every eight (8) workers above twenty (20). 

Sec. 7. Hours of wm^h to he coihsecutive. — The hours worked by 
any employee during each day shall be consecutive, provided that an 
interval not longer than one hour may be allowed for each regular 
meal period, and such interval not counted as part of the employee's 



26 

working time. Any rest period which may be given employees shall 
not be deducted from such employee's working time. 

Sec. 8. Extra ivorkinr/ hour on one day a week. — On one day each 
week employees may work one extra hour, but such hour is to be 
included within the maximum hours permitted each w^eek. 

Article VI — Wages 

Section 1. Basic scheduUs of wages. — On and after the effective 
date of this Code, the minimum weekly rates of wages which shall 
be paid for a work week as specified in Article V — whether such 
wages are calculated upon an hourly, weekly, monthly, commission, 
or any other basis — shall, except as hereinafter provided, be as 
follows : 

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

(b) Within cities of from 100,000 to 500,000 population, no em- 
ployee shall be paid less than at the rate of $13.00 per w^eek for a 
forty (40) hour w^orkweek, or less than at the rate of $13.50 per 
week for a forty-four (44) hour workM'eek, or less than at the rate 
of $14.00 per week for a forty-eight (48) hour workweek. 

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

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

(e) Within towns, villages, and other places with less than 2,500 
population, the wages of all classes of employees shall be increased 
from the rates existing on June 1, 1933, by not less than twenty (20) 
percent, provided that this shall not require an increase in wages to 
more than the rate of $10.00 per week; subject, how^ever, to the 
President's Executive Order of October 23, 1933, relating to the em- 
ployment of five persons or less in towns of 2,500 population or less, 
which is attached hereto and made a part hereof as Schedule A. 

The minimum wages paid to professional persons, outside sales- 
men, outside collectors, watchmen, field and repair service men, and 
maintenance and outside service employees shall be upon the basis 
of the basic employee workAveek upon Avhich the establishment by 
Avhich they are employed has elected to operate. 

The minimum Avages of any employee not included in the forego- 
ing paragraphs and not specifically excepted hereinafter shall be 
upon the basis of a forty (40) hour workAveek. 



27 

A person Trhose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a 
wage below the minimum established by this Code if the employer 
obtains from the State Authority designated by the United States 
Department of Labor a certificate authorizing his employment at 
such wages and for such hours as shall be stated in the certificate. 
Each employer shall file with the Code Authority a list of all such 
persons employed by him. 

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

Sec. 3. Southern roage differential. — In the South, within cities 
of over 25,000 population, the minimum wages prescribed in the 
foregoing sections may be at the rate of $1.00 less per week; within 
cities, towns, and villages of from 2,500 to 25,000 population the 
wages of all classes of employees shall be increased from the rates 
existing on June 1, 1933, by not less than twenty (20) percent, pro- 
vided that this shall not require an increase in wages to more than 
the rate of $10.00 per week, and provided further that no employee 
shall be paid less than at the rate of $9.00 per week except as pro- 
vided in Section 2 of this Article; within cities, towns, villages, 
and other places under 2,500 population the wages of all classes of 
employees shall be increased from the rates existing on June 1, 1933, 
by not less than twenty (20) percent, provided that this shall not 
require an increase in wages to more than the rate of $9.00 per week. 

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

Sec. 6. 'Weekly wages above minimum, not to he reduced. — The 
weekly wages of all classes of employees receiving more than tha 
minimum wages prescribed in this Article shall not be reduced from 
the rates existing upon July 15, 1933, notwithstanding any reduction 
in the number of working hours of such employees. 

Article VII — GENEiiAL Labor Provisions 

Section 1, Collective hargaining. — (a) Employees shall have the 
right to organize and bargain collectively through representatives 
of their own choosing, and shall bs free from the interference, re- 
straint, or coercion of employers of labor, or their agents, in the 
designation of sucl^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. 



28 

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

Sec. 2. Child lahor. — On and after the effective date of this Code, 
no person under the age of sixteen (16) years shall be employed, 
except that persons fourteen (14) and fifteen (15) years of age may 
be employed either — 

(a) for a period not to exceed three (3) hours per day during six 
(6) days in any one week, or 

(b) for one day per week, such day not to exceed eight (8) hours. 
In either case, all such hours of work shall be between 7 a.m. and 

7 p.m. and shall not conflict with the employee's hours of day school. 
It is provided, however, that no person under the age of sixteen (16) 
years shall be employed in delivering merchandise from motor 
vehicles. 

Sec. 3. No provision of this Code shall supersede any law within 
any State which makes more stringent requirements on emploj^ers as 
to hours of work, wages, or age of employees than are imposed by 
this Code. 

Sec. 4. Each employer shall post in conspicuous places, accessible to 
employees, full copies of this Code. 

Sec. 5. Employers engaged only locally in the trade (and not 
in a business in or affecting interstate commerce) who do not employ 
more than five persons and who are located in towns of less than 2,500 
population which are not in the immediate area of a city or town 
of larger population than 2,500 shall not be subject to the operation 
of Articles V and VI and Sections 2 and 4 of this Article VII. 

Aeticle VIII — Trade Practices 

The following practices constitute unfair methods of competition 
for the members of the retail farm equipment trade and are pro- 
hibited : 

(a) Price cutting. — No member of the trad© shall sell any product 
in the Trade at a price below his own individual cost. However, any 
member may meet the price competition of any one whose costs under 
this code provision are lower. Cost is defined as the wholesale in- 
voice price, plus transportation cost, plus overhead. Overhead 
shall include all elements of expense (including servicing) which 
are involved in the conduct of the business as may be determined 
by an accounting method to be proposed by the Code Authority and 
approved by the Administrator. 

Nothing in this Section (a), Article VIII, shall apply to the sale 
of merchandise which is obsolete, damaged, or the sale of which is 
being discontinued by said dealer, provided same are labelled, ad- 
vertised, or offered for sale as such, but no discontinued merchandise 
shall be sold below cost if a new dealer has offered to buy the same 
imder Section (d) of this Article. 

(b) Advertising. — The making or causing or knowingly permit- 
ting to be made or published any false, materially inaccurate, or 
deceptive statements by way of advertising or otherwise, whether 
concerning the grade, quantity, quality, substance, character, nature, 



29 

origin, size, finish, or preparation, of any merchandise offered for 
sale by the trade, or the credit terms, values, policies, or service of 
any member of the trade or otherwise, having the tendency or capac- 
ity to mislead customers or prospective customers. 

(c) Interference with contractual, relations, — Wilfully inducing 
or attempting to induce the breach of existing contracts between com- 
petitors and their customers by any false or deceptive means what- 
soever, or interfering with or obstructing the performance of any 
such contractual relations or services by iiny such means, with the 
purpose and effect of unduly hampering, injuring, or embarrassing 
competitors. 

(d) Transfer of dealer agency contracts. — To accept from the 
manufacturer the transfer of a dealer agency contract without 
offering to purchase from the former agent his marketable stock of 
that line of merchandise at replacement prices of identical goods pro- 
vided, however, that there shall be no such obligation to offer to 
purchase from a dealer who has violated the provisions of his 
contract with the manufacturer, or has voluntarily discontinued 
contractual relations with such manufacturer. 

(e) Secret rebates. — The secret payment or allowances of rebates, 
refunds, commissions, or credits, or discounts, whether in the form oi 
money or otherwise, or the secret extension to any purchaser of 
privileges or services not extended to all purchasers under like terms 
or conditions. 

(f ) Pridon-made goods. — Pending the formation of a compact or 
code between the several states and the United States to insure the 
manufacture and sale of prison-made goods on a fair competitive 
basis with goods not so produced, the following provisions of this 
code shall be stayed for a period of ninety days, but not thereafter : 

(1) To protect free labor against the competition of products pro- 
duced in penal, charitable, or reformatory institutions or by the 
inmates thereof, it is hereby declared to be an unfair act of competi- 
tion and a violation of this code to sell, offer for sale, or deliver 
prison made products at prices lower than that at which similar 
goods made by free labor can be sold under the provisions of this 
Code. 

(2)) Nothing herein shall be construed to supersede or interfere 
with the operation of the Act of Congress approved January 19, 
1929, being Public No. 669 of the 70th Congress and entitled"' "An 
Act to Divest Goods, Wares, and Merchandise Manufactured, Pro- 
ducedj or Mined by Convicts or Prisoners of their Interstate Char- 
acter m Certain Cases ", which Act is known as the Hawes-Cooper 
Act, or the provisions of any state legislation enacted thereunder 
or effective upon the effective date of said Hawes-Cooper Act, the 
said effective date bein^ January 19, 1934. 

(g) Trade-ins. — Sellmg trade-in merchandise or livestock below 
the price allowed thereon by the member of the trade plus thp. cost, 
if any, of reconditioning such merchandise ; provided, however, that 
such sale price upon trade-in merchandise or livestock remaining 
unsold at the end of the first year after it was traded in may be re- 
duced not to exceed 25 percent of the price allowed thereon, (plus 
cost, if any, of reconditioning) ; provided, further, that trade-in 



30 

merchandise or livestock remaining unsold at the end of the second 
year after it w& j traded in may be sold without restriction. 

(h) Other unfair 'practices. — Nothing in this code shall limit the 
effect of any adjudication by the courts or holding by the Federal 
Trade Cominission on complaint, finding and order that any practice 
or method is unfair provided that such adjudication or holding is not 
inconsistent with any provision of the Act or of this Covde. 

Article IX — Monopolies 

No provision of this code shall be so applied as to permit monopo- 
lies or monopolistic practices or to eliminate, oppress, or discrimi- 
nate against small enterprises. 

Article X — Coordination 

It shall be the policy of this trade to coordinate the administration 
of this code with such codes, if any, as may be adopted by any sub- 
divisions of this trade or related trade, with a view of providing 
joint and harmonious action on all matter's of common interest. 

Article XI — Violations 

Violations of this Code or any subdivision thereof, or the violation 
of any approved rules issued thereunder or of any agreement entered 
into under this Code, or the violation through any false statement 
or report made to the President or the Code Authority b}^ any person 
subject thereto shall, after determination thereof by the Administra- 
tor, constitute an unfair method of competition and the offender shall 
be subject to the penalties provided by law. 

Abticle XII — 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 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. 

(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 of hearing as he shall specify, and to become effective on 
his approval. 

Article XIII — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made impossible of consummation if prices of goods and 
service increase as rapidly as wages, it is recognized that price in- 



31 

creases should be delayed and that, when made, the same should, so 
far as reasonably possible, be limited to actual increases in the seller's 
costs. 

Aeticle XIV — ErrECTm: Date 

This code and amendments thereto shall be in effect beginning the 
third Monday after approval thereof by the Administrator, and 
shall apply to all members of the trade, excepting that those mem- 
bers of the trade located in towns of less than 2,500 population are 
permitted labor exemptions only as provided in Section 5, Article 
VII. 

Approved Code No. 197. 
Eegistry No. 1303-07. 



SCHEDULE A 

EXECUTIVE ORDER 

In order to effectuate tlie policy of title I of the National Industrial Re- 
covery Act, approved June 16, 1933, and to provide for equitable enforcement 
of agreements heretofore made with the President and codes approved by 
the President under said act. I, Franklin D. Roosevelt, President of the United 
States, pursuant to the authority vested in me by title I of said National 
Industrial Recovery Act, hereby prescribe the following rules and regulations 
which shall have the effect of modifying any inconsistent provisions of any 
order, approval, rule or regulation heretofore issued under title I of said act. 

1. The provisions of the President's reemployment agreement, issued July 27, 
1933, shall not be held to apply to employers engaged only locally in retail trade 
or in local service industries (and not in a business in or affecting interstate 
commerce) who do not employ more than five persons and who are located in 
towns of less than 2,500 population (according to the 1930 Federal census) 
which are not in the immediate trade area of a city of larger population, except 
so far as such employers who have signed the President's reemployment agree- 
ment desire to continue to comply with the terms of said agreement after the 
date of this order ; and this release of such employers who have heretofore signed 
the President's reemployment agreement shall be further extended so as to 
release to the same extent all such employers of obligations not voluntarily 
assumed under the provisions of a code of fair competition approved by the Presi- 
dent. This exemption is intended to relieve small business enterprises in small 
towns from fixed obligations which might impose exceptional hardship, but it 
Is expected that all such enterprises will conform to the fullest extent possible 
■with the requirements which would be otherwise obligatory upon them. 

2. In view of general increases in prices which may or may not be justified 
in specific instances by increased costs caused by compliance with the Presi- 
dent's reemployment agreement, or with approved codes of fair competition, the 
Administrator for Industrial Recovery is hereby directed to cause to be con- 
ducted such investigations as may be necessary to determine the extent to 
which manufacturers and producers have increased prices following, or in 
anticipation of, the approval of codes of fair competition, or after the signing 
of the President's reemployment agreement, and to set up adequate organiza- 
tions for the handling of complaints against such price increases and of local 
complaints against retail price increases alleged to be contrary to the require- 
ments of codes of fair competition, or the President's reemployment agreement, 
or In conflict with the policy of the National Industrial Recovery Act. 

FRANKLIN D. ROOSEVELT. 
The White House, 

October 23, 1933. 

(32) 

o 



Approved Code No. 198 
CODE OF FAIR COMPETITION 

FOR THE 

RAILWAY SAFETY APPLIANCE INDUSTRY 

As Approved on January 12, 1934 



Order Approving Code of Fair Competition for the Railway 

Safety Appliance Industry 

An aiDplication having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved Jvme 16, 1933, for approval of a Code of 
Fair Competition for the Railway Safety Appliance Industry, and 
hearings having been duly held thereon and the annexed report on 
said Code, containing findings with respect thereto, having been 
made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 1933, 
and otherwise, do hereby incorporate by reference said annexed re- 
port and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of said 
Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved. 

Hugh S. Johnson, 
Adininistrator for Industrial Recovery. 

Approval recommended : 
Malcolm Mihr, 

Division A dniln is t rat or. 

Washington, D.C. 

January 12, 1934. 

29903° 29(5-213 34 (33) 



The President. 

The White House. 

Sib : TMs is a report on the Code of Fair Competition proposed 
for the Rail^vay Safety Appliance Industry and on the hearing 
conducted thereon in Washington. D.C.. on October 11. 1933. in 
accordance with the provisions of the National Industrial Recoverv 

Act. 

RZSrTME OF CODE AS TO WAGES AXD HOEUS 

The Code provides that 8 hours shall constitute the normal number 
of working hours per day. and 40 hours the normal number of work- 
ing hours per week, and that employees shall not be permitted to 
work in excess of an average of 4<-> hours per week in any 4 months' 
period, the first of which periods shall begin on the effective date 
of the Code. These provisions are applicable to all employees except 
traveling salesmen, outside service men. watchmen, who may be per- 
mitted to work 56 hours per week, and persons employed in mana- 
gerial, executive, or technical work receiving not less than S35.00 per 
week. 

The minimum rates of pay provided for production labor are 40 
cents per hour for men and 35 cents per hour for women, and 
where women replace men such women shall receive the same rates 
of pay as received by the men so replaced. Time and one half shall 
be paid production employees for ea^h hour worked in excess of 8 
hours per day or 40 hours per week. 

Ail other employees are to be paid not less than S15.00 per week, 
except that a limited number of learners and office boys or girls 
may be paid not less than SO percent of the above minima. 

Equitable adjustments are to be made of all wage rates above 
gaid minima. 

Child labor is prohibited and no person under 18 years of age 
shall be employed in hazardous occupations. 

GENERAL STATEMENT 

The Railway Safety Appliance Manufacturing Industry is a capi- 
tal goods industry. It comprises the design, development, manu- 
facture, sale, and installation of power brake, signal and train- 
control systenLs. and parts. Its products are designed for the safe- 
guarding of movements of cars, locomotives, or trains. Its single 
customer, therefore. \s. the Railways, which customarily place orders 
on their own initiative as the need for equipment arises, rather than 
upon solicitation by members of the Industry. 

(34) 



3d 

The investment in the Industry is approximately ?113,000,000, 
and the number of wage earners in normal times about 11.000 per- 
sons, with an estimated annual pay roll of $20,000,000. 

In 19'2S. which is considered a normal year, operation was at the 
rate of approximately 54 percent of capacity, with a value of pro- 
duction of about ^oiOOO.OOO. Operation in 19-29 was about CS per- 
cent of capacity: in 1930 — 57 percent; in 1931—30 percent: and in 
1932 — 20 percent. The estimate for 1933 is about 11 percent of 
capacity. 

Orders for repair and maintenance of parts which, in a normal 
year, amount to approximately 15 percent of the total volume 
of production, in 1933 have represented about 95 ^jercent of the 
volimie of production. Xew installation business is anticipated 
in 1934 which will add measurably both to the number of employees 
and the pay rolls of the Industry. 

I believe that the Code is fair to Industry, to Labor, and to the 
Public, and is in accordance with the intent and purpose of the 
National Industrial Recovery Act. 

FrsniXGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the pro- 
ceedings in this matter : 

I find that — 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act. including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
ride for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining imited action of labor and management 
imder adequate govermnental sanctions and supervision, by eliminat- 
ing imfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consimiption of industrial and agricul- 
tural products through increasing purchasing power, by reducing and 
relieving unemployment, by improving standards of labor, and by 
otherwise rehabilitating industry. 

(b) Said Industry normally employs nut more than 50.<XX) em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in ail respects with the j)erti- 
nent provisions of said Title of said Act. including without limitation 
Subsection (a) of Section 3. Subsection (a) of Section 7. and Sub- 
section {b) of Section 10 thereof: and that the applicant group is 
an industrial group truly representative of the aforesaid Industry; 
and that ^aid group imposes no inequitable restrictions on admission 
to membei-ship therein. 

(d) The Code is not designed to and will not permit monopolies 
nor monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not oi>erate to discrimmate against them. 



36 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 
For these reasons, therefore. I have approved this Code. 
Respectful!}', 

Hugh S. Johnson, 

Administrator. 
Washington. D.C, 

January 12, 193 Jf. 



CODE OF FAIR COMPETITION 

FOR THE 

RAILWAY SAFETY APPLIANCE INDUSTRY 

Article I 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are submitted as a Code of 
Fair Competition for the Railway Safety Appliance Industry and 
upon approval by the President shall be the standards of fair com- 
petition for such Industry and shall be binding upon every member 
thereof. 

ArTICLK 1 1 — DeF IX ITIOX s 

"Wherever used in the Code or in any schedule appertaining thereto, 
the terms hereinafter in this Article defined shall, unless the con- 
text shall otherwise clearly indicate, have the respective meanings 
hereinafter in this Article set forth. The definition of any such 
term in the singular shall aj^ply to the use of such term in the plural 
and vice ver.sa. 

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

The term " the Industry' " means and includes the business of the 
design, development, manufacture, sale, and installation of power 
brake, signal, and train control .systems, and apparatus, appliances 
and parts Avhicli have for their object the safeguarding of move- 
ment of cars, locomotives, or trains on railways operated by steam 
electricity, or other motive power. 

The term '' member of the Industry "' means and includes but 
without limitation any individual, firm, association, corporation, 
trustee, receiver, or other form of enterprise, engaged in the Industry. 

The term " the Code " means and includes this Code and all 
schedules annexed hereto as originally approved by the President 
and all amendments hereof and thereof made as hereinafter provided. 

Except as otherwise required by any provision of the Code, the 
term '' member of the Industry who assents to the Code " means any 
member of the Industry who assents to the Code as hereinafter 
l)rovided. ■ . • "<-'? 

The term " Code Authority " means the Code Authority as from 
time to time constituted whose members shall be chosen as hereinafter 
]irovided. 

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

(37) 



38 

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

The term " expiration date '' as used herein means June 16, 1935, 
or the earliest date prior thereto on which the President shall by 
proclamation or the Congress shall by joint resolution declare that 
the emergency recognized by Section 1 of Title I of the National 
Industrial Recovery Act has ended. 

Article III — Hours 

Section 1. Except as herein otherwise provided eight (8) hours 
of labor shall constitute the normal number of working hours per 
day and forty (40) hours of labor the normal number of working 
hours per week for all employees, and no employee shall be permitted 
to work in excess of an average of forty (40) hours per week in 
any four (4) months' period, the first of which periods shall begin 
on the effective date of the Code. 

Sec. 2. No employer shall knowingly permit any employee to 
work for any time which when totaled with that alread}' performed 
with another employer or employers in the Industry exceeds the 
maximum permitted herein. 

Sec. 3. The provisions of this Article shall not apply to travelling 
salesmen or to outside service men, persons employed in managerial, 
executive, or technical work, or to members of their respective staffs 
whose rate of pay is not less than thirty-five (35) dollars per week; 
nor shall they apply to watchmen, who may be permitted to work 
fifty-six (56) hours per week. 

Article IV — Wages 

Section 1. The minimum wage that shall be paid by any employer 
to any employee engaged in the processing or installation of the 
products of the Industry or in labor operations directly incident 
thereto, shall be not less than forty (40) cents per hour for male 
and thirty-five (35) cents per hour for female employees; provided, 
that if males be replaced by females, for the same operations such 
females shall receive the same rate of pay as the males received, and, 
provided that learners may be paid not less than eighty (80) percent 
of the above-stated minimum rates and that the number of learners 
receiving less than such minimum rates shall not exceed five (5) 
percent of the total number of such employees. Employees engaged 
in the processing or installation of the products of the Industry and 
in labor operations directly incident thereto shall be paid not less 
than one and one half (II/2) times their regular hourly rates of pay 
for all excess hours worked over eight (8) hours per day or forty 
(40) hours per week. 

Sec. 2. The minimum wage that shall be paid by any employer 
to all other employees, except commission salespeople, shall be at 
the rate of fifteen (15) dollars per week; provided, however, that 
office boys and girls and student learners may be paid not less than 
eighty (80) percent of such minimum wage, but the number of 
such office bo3s or girls and student learners paid at a rate of less 
than fifteen (15) dollars per week shall not exceed five (5) percent 



39 

of the total number of eiiiplo^'eos covered by the provisions of this 
paragraph. 

Sec. 3. The minimum rates of pay above established shall apply 
irrespective of whether an employee is actually compensated on a 
time rate, piecework, or other basis. 

Sec. 4. Equitable adjustment in all pay schedules of factory em- 
ploj'ees above the minima shall be made not later than fifteen 
(15) days from the effective date of the Code by any employers 
who have not theretofore made such adjustments, and the first reports 
of wages, required to be filed under the Code, shall contain all wage 
increases made since June 15th, 1933. 

Sec. 5. A person whose earning capacity is limited because of age 
or physical or mental handicap may be employed at a wage beloAv 
the minima established by the Code if the employer obtains from 
the State Authority designated by the United States Department of 
Labor a certificate authorizing his employment at such wages and 
for such hours as shall be stated in the certificate. Each employer 
shall file with the Code Authority a list of all such employees so 
employed by such employer. 

Sec. 6. Emploj-ers shall not reclassify employees contrary to fact 
with reference to work performed, with the intention of defeating 
the purposes of the Act. 

Article V — General Labor Provisions 

Section 1. Employers shall not employ anyone under the age of 
sixteen (16) years. No person under eighteen (18) years of age 
shall be employed at operations or occupations which are hazardous 
in nature or dangerous to health. 

Sec. 2. As required by Sub-Section (a) of Section 7 of the 
National Industrial Recovery Act : 

(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 emj)loyment shall be re- 
quired as a condition of employment to join anj- company union or 
to refrain from joining, organizing, or assisting a labor organization 
of his own choosing; and 

(c) Emploj^ers shall comply with the maximum hours of labor, 
minimum rates of psi}\ and other conditions of employment, ap- 
proved or prescribed by the President. 

Sec. 3. AH employers shall post complete copies of the Code in 
conspicuous places accessible to all employees. 

Article VI — Administration of the Code 

Section 1. A Code Authority is hereby constituted which shall con- 
sist of seven members elected by the members of the Industry who 
assent to the Code. The method of selection and voting shall be as 
determined by the bylaws of the Code Authority of the Industry 



40 

subject to the approval of the Administrator. In addition to meiri- 
bership as above provided, the Administrator may appoint a mem- 
ber to the Code Authority, or not more than three members, such 
member or members to sit without vote and to serve for terms as 
fixed by the Administrator. Any such representative shall serve 
without expense to the Industry unless by agreement approved by 
the Administrator and, together with the Administrator, shall be 
given notice of and ma}^ sit at all meetings of the Code Authority. 

Sec. 2. 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 association, 
bylaw,s, regulations, and any amendments when made thereto, to- 
gether with such other information as to membership, organization, 
and activities as may be 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 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 ap- 
propriate modification in the method of selection of the Code 
Authority, or any subcode 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 the Code as required by the bylaws and complying with the re- 
quirements of the Code and sustaining their reasonable share of the 
expenses of its administration. Such reasonable share of the ex- 
penses of administration shall be determined by the Code Authority 
on the basis of proportionate pay rolls as required by the bylaws. 

Sec. 5. Any member of the Industry who desires to become an as- 
senting member to the Code, may do so by signing and delivering to 
the Secretary a letter substantially in the form set forth in Schedule 
A annexed hereto. 

Sec. 6. Nothing contained in the 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, officer, agent, or employee 
of the Code Authority exercising reasonable diligence in the conduct 
of his duties hereunder, be liable to anyone for any action or omis- 
sion to act under the Code, except for his own wilful misfeasance 
or nonfeasance. 

Sec. 7. The Code Authority shall have the following further 
powers and duties: 

(a) To use its best efforts to insure the execution of the pro- 
visions of the Code and provide for the compliance of the Industry 
Avith 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 statistical in- 
formation and reports as are required for the administration of the 



}: 



41 

Code, which information and reports shall be submitted by the Code 
Authority to ^ich administrative and/or government agencies as the 
Administrator may designate; provided that nothing in the Code 
shall relieve any member of the Industry of any existing obligations 
to furnish reports to any government agency. No individual re- 
ports shall be disclosed to any other member of the Industrj' or to 
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 
lerein, provided that nothing herein shall relieve the Code Author- 
ity of its duties or responsibilities under the Code and that such 
trade associations and agencies shall at all times be .subject to and 
complj' with the provisions hereof. 

(e) To secure from members of the Industry an equitable and 
proportionate payment of the reasonable expenses of maintaining the 
Code Authority and its activities. 

(f) To initiate, consider, and make recommendations for the 
modification or amendment of the Code. 

Sec. 8. In addition to the information required to be submitted to 
the Code Authority as set forth in this Article, there shall be fur- 
nished to Government agencies such statistical information as the 
Administrator may deem necessary for the purposes recited in 
Section 3 (a) of the National Industrial Recovery Act. 

Sec. 9. Any action taken by the Code Authority relative to tlie 
Administration of this Code, except where specificallj^ made subject 
to the approval of the Administrator, may, in the discretion of the 
Code Authority, be submitted to the Administrator for approval, and 
shall in any case be subject to the disapproval of the Administrator. 

Article YII — Modification and Atmexdmexts 

Section 1. The 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 the Code or an}- conditions 
imposed b}' him upon his approval thereof. 

Sec. 2. The Code, except as to the 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. 

Article VIII — Geneiial Provisions 

Section 1. If any emploj^er in the Industry is also an employer 
in any other industry, the provisions of the Code shall apply to and 
{iffect only that part of the business and products, of such employer 
which are included in the Industry'. 



42 

Sec. 2. No provision of the Code shall he so applied as to permit 
monopolies or monopolistic practices, or to eliminate, oppress, or 
discriminate against small enterprises. 

Article IX 

The term " effective date of the Code " means 12 :01 a.m. on the 
third Monday after the Code shall have been approved by the 
President pursuant to the National Industrial Recovery Act. 

Approved Code No. 198. 
Registry No. 1413-01. 



SCHEDULE A 
FORM OF LETTEIl OF ASSENT TO THE CODE 

, 193—. 

To the Secniuiy of the Code Authority of the Code of Fair Competition for the 
Railicay Safety AppUanee Industry. 

Dear Sik : The uudersifrned, desiring; to Ixv-oine a member who assents to the 
Code of Fair Competition for the Railway Safety Appliance Industry, a copy 
of which is annexed hereto, marked Annex A, hereby assents to all of the 
provisions of said Code (hereinafter referred to as the Code), and effective on 
the third Monday after the date on wliicli the Code shall have been approved 
by the President of the United States of America as therein provided, or as 
of the date on which this letter shall have been delivered, if delivery thereof 
shall have been made subsequent to the third IMonday after tlic Code shall have 
been approved by said Pi'esident as aforesaid, by the signing and delivery of 
this letter, becomes a member who assents to the Code and agrees to the By-Laws 
of the Code Authority, a copy of which may be obtained from the Secretary 
of the Code Authority. 

For all purposes of the Code, the address of the undersigned, until it shall 
file with the Secretary of the Code Authority written notice of a change of 
such address, shall be as set fortli at the foot of this letter. 
Very truly yours, 



Address 
(43) 



o 



Approved Code No. 199 
CODE OF FAIR COMPETITION 

FOR THE 

CORK INDUSTRY 

As Approved on January 12, 1934 



ORDER 

APPROVING CODE OF FAIR COMPETITION 
FOR THE CORK INDUSTRY 

An application having been clul}- made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of the Code of 
Fair Competition for the Cork Industry, and hearings having been 
duly held thereon and the annexed report on said Code, containing 
findings with respect thereto, having been made and directed to the 
President i 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise, do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
AdTninistrator for Industrial Recovery, 

Approval Recommended : 
George L. Bekry, 

Division Administrator. 

Washington, D.C, 

January 12, 1934. 

81503° 313-38 34 (45) 



The President, 

The 'White House. 

Sir : The public hearing on the Code of Fair Competition for the 
Cork Industry of the United States, submitted by the Cork Institute 
of America, located at 5935 Grand Central Terminal, New York, was 
conducted in Washington, D.C., on the 25th of October, 1933, in 
accordance with the provisions of the National Industrial Recovery 
Act. The Association claims to represent 98% of the Industry. 

The maximum hours established under this Code are forty (40) 
per week, averaged over a three-month period, with a limitation of 
forty-eight (48) hours in any one week. Exceptions are allowed for 
executives, technical workers, or supervisors who receive not less 
than thirty-five ($35.00) dollars per week, and to their immediate 
nonproductive personal assistants receiving not less than twenty-five 
($25.00) dollars per week, and outside salesmen; also employees en- 
gaged in emergency repair work, firemen, engineers, truck drivers, 
and shipping crews, provided they are paid one and one-half times 
the regular rate of pay for all hours per week over forty-four (44). 
Watchmen are allowed fifty-six (56) hours per week, provided they 
are required to work only six days per week. 

In 1929 this industry operated approximatelj^ 53 hours per week, 
and in 1931 approximately 50 hours per week. During 1929 ap- 
proximately 3,842 wage earners were employed, and in 1931 ap- 
proximately 3,018 wage earners were employed. In order to bring 
employment back to the 1929 level it would be necessary to adopt a 
89.3 hour week. In view of these facts a 40-hour week would appear 
equitable and justifiable, reabsorbing, as it will, approximately 755 
wage earners in this industry. 

The minimum wages established in this Code are thirty-eight (380) 
cents per hour for males and thirty cents (30(i) per hour for females. 
Protection of employees on piecework performance is guaranteed. 

Exceptions to the minimum wage are allowed to learners, office 
boys, and messengers, who shall receive 80 percent of the minimum, 
and to handicapped persons whose earning capacity is limited, pro- 
vided the employer obtains a certificate from the State authority 
designated by the United States Department of Labor. 

Wages in this Industry represented 18.3 percent of the value of 
products in 1929, compared with 16.5 percent for all industries com- 
bined. In 1931 wages in this line of activity represented 20.4 per- 
cent of the value of products, compared with 17.4 percent for 
combined industries. 

Wage earners in 1931, on a 50-hour basis, were paid an average 
of 38.6 cents per hour. 

The increase in price to the purchaser should not represent more 
than 7.4 percent by the increased wage rates and shortened hours. 
If wages m this industry are maintained at the 1929 hourly average, 

(46) 



47 

i.e., 39.7 cents per hour, and on the basis of a 40-hoiir week, the total 
pay roll would increase $87,943.00. 

The Deputy Administrator in his final report to me on said Code 
having found as Iierein set forth and on the basis of all the proceed- 
ings in this matter ; 

I find that — 

(a) Said Code is well designed to promote the policies and 
purposes of Title I of the National Industrial Recovery Act, 
including removal of obstructions to the free flow of interstate 
and foreign commerce which tend to diminish the amount 
thereof and will provide for the general welfare by promoting the 
organization of industry for the purpose of cooperative action 
among the trade groups, by inducing and maintaining united action 
of labor and management under adequate governmental sanctions 
and supervision, by eliminating unfair competitive practices, by 
promoting the fullest possible utilization of the present productive 
capacity of industries, by avoiding undue restrictions of production 
(except as may be temporarily required), by increasing the con- 
sumption of industrial and agricultural products through increasing 
purchasing power, by reducing and relieving unemployment, by im- 
proving standards of labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant associa- 
tion is a trade association truly representative of the aforesaid 
Industry; and that said association imposes no inequitable restric- 
tions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 

This Industry has cooperated in a most satisfactory manner with 
the Administration in the preparation of this Code. From the evi- 
dence 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, equi- 
table solution for this Industry and for these reasons has been 
approved. 

Respectfully, 

Hugh S. Johnson, 

A dmAnistraior. 
January 12, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

CORK INDUSTRY 

Article I — Pueposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is established as a Code of Fair Competition 
for the Cork Industry and shall be the standard of fair competition 
for this Industry and binding on every member thereof. 

Article II — Definitions 

Section 1. Wherever used in this Code or in any subdivisional 
Code or amendment made a part hereof, the terms hereinafter de- 
fined in this Article shall, unless the content shall otherwise clearly 
state, be the respective meanings in this Code and in such subdivi- 
sional Codes and amendments. 

Sec. 2. The term " industry "^ as used herein, includes the manu- 
facture and sale, including jobbing and wholesaling, of the products 
of the industry, and branches or subdivisions thereof as may from 
time to time be included under the provisions of this Code. 

Sec. 3. The term " products of this industry ", as used herein, 
includes corkwood and ground cork converted into cork products of 
all descriptions, including: cork insulation and cork insulation ac- 
cessories; cork stoppers; cork composition articles and specialties: 
cork liners, whether plain or in combination with paper, metal foil 
or other coating materials; cork marine goods; cork floor tile; and 
all other products made primarily of cork which are manufactured 
and sold by members or the Cork Industry. This includes also 
special blocks with or without binder used exclusively for low 
temperature insulation. 

Sec. 4. The term " employee " as used herein includes anyone 
engaged in the industry in any capacity receiving compensation for 
his service, irrespective of the nature or method of payment of such 
compensation. 

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

Sec. 6. The term learners " as used herein shall mean any em- 
ployee who has had no previous experience or employment in this 
industry. 

Sec. 7. The term " member of the industry " includes anyone en- 

gaged in the industry as above defined, either as an employer or on 
is own behalf. 

Sec. 8. The term " Institute " shall mean the Cork Institute of 
America. 

Seo, 9. The term " Board of Directors " shall mean the Board of 
Directors of the Cork Institute of America. 

(48) 



49 

Seo. 10. The term " Secretary " shall mean the Secretary of the 
Cork Institute of America. 

Seo. 11. The term "Division/Divisional Group " shall mean the 
divisions of the Cork Institute of America which, as now constituted, 
are as follows: 

(a) Cork Insulation Manufacturers Division, 

(b) Cork Stopper Manufacturers Division. 

(c) Cork Composition and Cork Specialties Manufacturers Di- 
vision. 

'd) Cork Marine Goods Manufacturers Division. 

e) Cork Floor Tile Manufacturers Division. 

^f) Cork Bulletin and Display Board Manufacturers Division. 
Sec. 12. The terms "Act " and "Administrator " as used herein 
shall mean respectively the National Industrial Recovery Act and 
the Administrator for Industrial Recovery. 

Article III — Hours 

MAXIMUM HOURS 

Section 1. No employee shall be permitted to work in excess of an 
average of forty (40) hours per week in any three (3) months' period 
nor more than forty-eight (48) hours in any one week, except as 
herein otherwise provided. 

exceptions as to HOURS 

Sec. 2. The maximum hours of work stipulated in this Article 
shall not apply to executives, technical workers, or supervisors who 
receive not less than thirty-five ($35.00) dollars per week; nor to 
their immediate nonproductive personal assistants who receive not 
less than twenty-j&ve ($25.00) dollars per week; nor to outside sales- 
men: nor to any employee engaged in emergency repair work involv- 
ing break-downs or protection of life or property; nor to firemen, 
engineers, truck drivers, and shipping crews, provided, however, 
that one and one half times the regular rate of pay shall be paid to 
employees engaged in emergency repair work, firemen, engineers, 
truck drivers and shipping crews for all hours worked in excess oi 
forty-four (44) per week. 

Sec. 3. Watchmen shall not be employed for more than fifty-six 
(5G) hours in any one week, provided, however, that they shall not 
be employed for more than six (6) days in any one week. 

TEMPORARY EMPLOYEES 

Sec. 4. Overtime at the rate of time and one half shall be paid 
to any employee for all hours worked per week in excess of forty 
(40) when the period of his employment is less than three months 
and when the hours of his employment average more than forty 
(40) hours per week for the period of such employment. 

EMPLOYMENT BY SEVERAL EMPLOYERS 

Sec. 5. No employee shall be permitted to work for a total number 
of hours in excess of the number of hours herein prescribed for each 
week, whether employed by one or more employers. 



50 

Article IV — Wages 

MINIMUM WAGES 



Section 1. No employee, hired on an hourly basis, shall be paid 
less than at the rate of thirty-eisht (380) cents per hour for male and 
thirty (300) cents per hour for female employees. 

FEMALE EMPLOYEES 

Sec. 2. The minimum rates established by this Article shall not in 
any way be considered as a discrimination by reason of sex, and 
where in any case female employees perform substantially the same 
work as male employees, they shall receive the same rate of com- 
pensation as male employees. 

piece-work COMPENSATION MINIMUM WAGES 

Sec. 3. This article establishes a minimum rate of pay which shall 
apply, irrespective of whether an employee is actually compensated 
on time rate, piece-work performance, or other basis. 

MINIMUM WAGE FOR OFFICE, CLERICAL, ETC. 

Sec. 4. No accounting, clerical, office, service or sales employee (ex- 
cept outside salesmen) shall be paid less than fourteen ($14.00) 
dollars per week. 

EXCEPTIONS TO MINIMUM WAGES 

Sec. 5. The minimum wages stipulated for employees in Sections 1 
and 4 of this Article shall not apply to learners, office boys, and 
messengers, but the minimum rate of compensation for these em- 
ployees shall be not less than eighty percent (80%^ of the minimum 
rates established in Sections 1 and 4 of this Article, and the total 
number of such persons employed by any member of the industry 
shall not exceed five percent (5%) of the total number of regular 
employees engaged by such member, except that those members of the 
industry employing less than one hundred (100) wage earners shall 
be entitled to employ one learner or one office boy or one messenger 
to each five (5) regular wage earners, but in no case more than a 
total of five (5) such employees. Learners shall not be employed 
as such for a period longer than six (6) months. 

HANDICAPPED PERSONS 

Sec. 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 below the minimum established by this Code if the employer 
obtains from the State authority desimated by the United States 
Department of Labor a certificate autliorizing his employment at 
such wages and for such hours as shall be stated in the certificate. 
Each employer shall file with the Code Authority a list of all such 
persons employed by him. 



51 

WAGES ABOVE MINIMUM 

Sec. 7. It is the policy of the members of this industry to refrain 
from reducing compensation for employment which compensation 
was, prior to June 16, 1933, in excess of the minimum wage herein 
set forth, notwithstanding that the hours of work in such employ- 
ment may be reduced; and all members of this industrj'^ shall en- 
deavor 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. 

Article V — General Labor Provisions 

CHILD LAKOR 

Section 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 emploj^ed at operations or occupations which are 
hazardous in nature or dangerous to health. In any State an em- 
ployer shall be deemed to have complied with 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 cer- 
tificates or permits showing that the employee is of the required age. 

provisions from the act 

Sec. 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 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 

(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. 

reclassification of employees 

Sec. 3. No employer shall reclassify employees or duties of occu- 
pations performed by employees or engage in any other subterfuge 
for the purpose of defeating the purposes or provisions of the Act or 
of this Code. 

standards for safety and health 

Sec. 4. Every employer shall make reasonable provision for the 
safety and health of his employees at the place and during the hours 
of their employment. 



52 



STATE LAWS 



Sec. 5. 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, or sanitary or general working conditions, than are imposea 
by this Code. 

POSTING 

Sec. 6. All employers shall post and keep posted complete copies 
of the wage, hour, and General Labor Provisions of this Code in 
conspicuous places accessible to employees. 

Article VI — Organization and Constitution of Code Authority 

ADMIN^STRATION 

Section 1. A Code Authority is hereby established to cooperate 
with the Administrator in the administration of this Code and shall 
consist of the membership of the Board of Directors of the Institute. 
The Administrator, in his discretion, may appoint not more than 
three additional members without vote, and without compensation 
from the Industry, to serve for such period of time, and to represent 
the Administrator or such group or groups as he may designate. 

Sec. 2. In order that the Code Authority shall at all times be 
truly representative of the industry and in other respects comply 
with the provisions of the Act, the Administrator may provide such 
hearings as he may deem proper; and thereafter, if he shall find 
that the Code Authority is not truly representative or does not in 
other respects comply with the provisions of the Act, he may re- 
quire an appropriate modification in the method of selection of 
the Code Authority. 

POWERS AND DUTIES 

Sec. 3. The Code Authority shall have the following further 
powers and duties, the exercise of which shall be subject to the right 
of the Administrator, on review, to disapprove of any action taken 
b}' the Code Authority : 

(a) To adopt bylaws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(b) To use the secretary or any other person, association, or 
group, as it may deem proper, for the carrying out 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. 

(c) To make investigations as to the functioning and observance of 
any of the provisions of this Code, at its own instance or on com- 
plaint by any person affected, and report the same to the Ad- 
ministrator. 

(d) To obtain from members of the Industry such information 
and reports as are required for the administration of the Code and 



53 

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 shall be 
submitted by members to such administrative and/or governmental 
agencies as the Administrator may designate, provided that nothing 
in this Code shall relieve any member of the industry of any existing 
obligation to furnish reports to any governmental agency. Such 
data shall be compiled by the Secretary in a form which will not 
reveal the data of an individual member of the Industry and in this 
form may be made available to the members of the industry as 
directed by the Code Authority, unless otherwise directed by the 
Administrator. 

(e) To collect statistics of sales, unfilled orders, production, stocks 
on hand, shipments, hours of laoor, rates of pay, number of em- 
ployees, prices, and such other data as may be required by the 
Administrator, such data to be compiled b^y the Secretary in a form 
which will not reveal the data of an individual member of the 
industry. 

(f ) Upon termination of the activities of the Code Authority all 
data and statistics then on file with the Secretary which were sub- 
mitted by any member of the industry shall be returned to such 
member upon request unless the disposition of such data and statis- 
tics is otherwise directed by the Administrator. 

(g) To allocate assessments among the divisional groups of the 
Institute and to collect from those members of the Industry par- 
ticipating in the activities of the Code Authority an equitable and 
proportionate share 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 stabili- 
zation of employment. 

Sec. 4. Each divisional gi'oup of the Industry shall have its own 
separate and distinct planning committee, known as the Division 
Executive Committee, and such executive committee shall place in 
writing all of its decisions and recommendations to the Code Au- 
thority for approval at least fifteen (15) days before such decisions 
and reconmiendations are to become effective. If the Code Authority 
disapproves or fails either to approve or disapprove such decisions 
or recommendations within fifteen (15) days after their receipt by 
the Code Authority, the Division Executive Committee shall be en- 
titled to present its recommendations to the Administrator for his 
approval, if the api)roval of the Administrator is required; and if no 
such approval is required such division may of its own election carry 
out the decisions and recommendations of its Executive Committee, 
all to tlie end that each division shall be independent and self-gov- 
erning in all mattx^rs relating exclusively to such division. 

Sec. 5. Any action of the Code Authority or of any agency thereof, 
which the Administrator may deem unfair or improper, or contrary 
to the public interest, or which may be reported to him by any 
interested parties as unfair to any private interest, improper or 
contrary to the public interest, may be suspended for such period of 



54 

time, not to exceed thirty (30) days, as he may deem necessary to 
aflford an opportunity for investigation into such action. Further 
action by the Code Authority or of any agency thereof may be held 
in abe3^ance by the Administrator pending his final determination 
of the matter under investigation. 

Sec. 6. No inequitable restriction on admission to membership in 
the Institute or any division thereof participating in the activities 
of the Code Authority shall be imposed, and any member of the 
Industry shall be eligible for membership in the Institute or group 
or divisional group upon compliance with the provisions of the by- 
laws relating to membership. Any member of the industry who does 
not become a member of the Institute, who participates in the activi- 
ties of the Code Authority shall pay to the Code Authority such 
proportionate part of the cost of administration of the Code as the 
Code Authority, subject to the approval of the Administrator, shall 
prescribe to be fair and equitable. 

Sec. 7. Nothing contained in this Article shall constitute the mem- 
bers of the Code Authority partners for any purpose, nor shall any 
member of the Code Authority be liable in any manner to anyone for 
any act of any other member, officer, agent, or employee of the Code 
Authority. Nor shall any member of the Code Authority, exercising 
reasonable diligence in the conduct of his duties hereunder, be liable 
to anyone for any action or omission to act under this Code, except 
for his own wilful misfeasance or nonfeasance. 

Article VII — Trade Practices 

The following practices shall constitute unfair methods of com- 
petition for members of the industry and are prohibited : 

1. The false marking or branding of any products of the industry 
in any manner which has the tendency to mislead or deceive cus- 
tomers or prospective customers, whether as to the grade, quality, 
quantity, substance, character, nature, origin, size, finish, or prepara- 
tion of any product of the industry or otherwise. 

2. The making, or causing, or knowingly permitting to be made 
or published any false, materially inaccurate or deceptive statement 
by way of advertisement or otherwise, whether concerning the grade, 
quality, quantity, substance, character^ nature, origin, size, finish, or 
preparation of any product of the industry or the credit terms, 
values, policies, or services of any member of the industry, or other- 
wise, having the tendency or capacity to mislead or deceive customers 
or prospective customers. 

3. Maliciously inducing or attempting to induce the breach of an 
existing oral or written contract between a competitor and his 
customer or source of supply, or interfering with or obstructing the 
performance of any such contractual duties or services. 

4. The defamation of competitors by falsely imputing to them 
dishonorable conduct, inability to perform a contract, questionable 
credit standing, or by other false representations or by the false 
disparagement of the grade or quality of their goods. 

6. Unfairly procuring any information concerning the business of 
a member which is properly regarded by him as a trade secret or 
confidential within his organization, other than information relating 
to a violation of any provisions of the Code. 



55 

6. 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 
business of the employer of such employee, the principal of such 
agent or the represented party, without the knowledge of such em- 
plo3'er, 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. 

Paying, allowing, or promising to any purchaser or prospective 
purchaser or to any officer, employee, agent, or representative of any 
such purchaser or prospective purchaser, any payment of money or 
other remuneration directly or indirectly, and/or the splitting or 
otherwise sharing the commissioi? or compensation of a member's 
salesman or agent or other employee with anyone, and/or the grant- 
ing of rebates, credits, discounts, adjustments or similar concessions, 
other than specified in the contract of sale and permitted by the Code. 

7. Noncompliance with the provisions, separately or collectively, 
of any merchandising plan of the division to which the member be- 
longs which may be submitted through the Code Authority and ap- 
proved by the Administrator, and/or in any manner conducting his 
business otherwise than in open compliance with the plans he has 
filed with the Secretary. 

8. To inform a customer or customers, either directly or indirectly, 
concerning any increases or decreases in prices or changes in dis- 
counts prior to the effective date of such new prices or discounts. 

9. The sale by any member of the industry of side products of 
this industry or of any grades of products of this industry other 
than those filed with the Code Authority, except in accordance with 
a plan approved by the Executive Committee and the Code Au- 
thority subject, however, to the disapproval of the Administrator. 

10. Using or substituting in a sale any article or material other 
than that specified by the purchaser of any product, or making any 
sale or contract of sale under any description W'hich does not fully 
describe such product in terms customarily used in the industry, 
except that this provision shall not be construed as interfering with 
the practice of the industry in packing private brands of cork 
stoppers for customers such as wholesale druggists, or interfering 
wdth the disposal of bona fide side products as provided for in 
Section 9 of this Article. 

11. Imitating or simulating any style, design, brand, slogan, or 
advertising copy, or other means of identification solely owned liy 
another member of the Industry, for the purpose of misleading or 
deceiving purchasers. 

12. Approaching or enticing the employees of competitors with 
the intent of unduly hampering, injuring, and/or embarrassing such 
competitors in the conduct of their business. 

13. Protecting contracts against a decrease or an increase in price 
except as to the unshipped portion of such contracts. 

14. Aiding or abetting any person, firm, association, or corpora- 
tion in any unfair practice set forth in this Code. 

15. Stating in the invoice of any product as the date thereof a 
date later or earlier than the date of the shipment of such product, or 



56 

including in any invoice any product shipped on a date earlier or 
later than the date of such invoice. 

16. The making of any loan to a customer by any member of the 
industry or his employees for the purpose of inducing the sale of 
goods. 

17. Making false or wilfully misleading statements or reports, 
written or oral, required pursuant to any of the provisions of this 
Code, or any resolution duly adopted by the Code Authority. 

18. Performing any extra operations on products such as, but not 
limited to, branding cork stoppers, paraffining cork stoppers, cutting 
half sizes, dyeing attachments to cork stoppers, shaping cork stop- 
pers, and packing in units less than the accepted standards, without 
making an adequate charge to cover the cost of such operations. 

19. The subnormal pricing or the granting of a reduced price, 
rebate, or other concession on articles not specifically mentioned in 
this Code to influence the sale of articles covered by this Code. 

20. Supplying special service at reduced rates or gratis, such as 
service of construction superintendent or foreman, or the loan of 
equipment as an inducement toward making a sale of materials. 

21. Recommending specifications which are known to be faulty or 
hazardous from a construction viewpoint or failing to caution pros- 
pective purchasers against the use of such specifications ; or secretly 
changing specifications in figuring estimates for the purpose and 
effect of misleading competitors and customers or executing any 
contract other than in strict accordance with the construction speci- 
fications on which the contract was estimated and secured. 

22. Accepting or offering to accept securities, bonds, mortgages, 
or stock as whole or part payment for material sold or work per- 
formed as an inducement to obtain an order. 

23. Incorrectly classifying a customer to enable said customer to 
obtain a price better or terms of sale more favorable than those 
stated in such member's filed price list, terms of sale, or merchan- 
dising plan as hereafter provided. 

24. Selling or offering for sale seconds or damaged goods at prices 
lower or terms of sale more favorable than those stated in such 
member's filed price list, terms of sale or merchandising plan, as 
hereafter provided, and in such cases all such goods shall be plainly 
marked or advertised as seconds or damaged goods. 

Article VIII — Merchandising Plans 

Section 1. The Executive Committee of each divisional group of 
the industry shall, with the approval of a majority of the memoers 
of the division representing at least seventy-five percent (75%) of 
the dollar volume of the division's sales for the preceding six (6) 
months' period, prepare its recommendations as to the form and 
provisions of a merchandising plan to be followed by each indi- 
vidual member of the division concerned, which recommendations 
shall require each individual member of the division in filing his 
own merchandising plan to submit : 

(a) His basic price list. 



57 

(b) Complete schedules of discounts, including extra quantity 
discounts, if an5\ 

(c) Terms of sale. 

^d) His classification of the trade. 

(e) Lists of the various grades of all products which he proposes 

to offer for sale. 

(f) All other conditions in any way affecting any transaction or 

sale of the products of the division. 

In addition to the foregoing information the Executive Com- 
mittee of any Division may require the submission b}^ the indi\ddual 
members of such division of bona fide samples of each grade of the 
products offered for sale, where varying the quality can be used 
to obtain a competitive advantage. All such recommendations and 
merchandising plans prepared by the Executive Committees shall 
be capable of uniform application within the respective divisions 
and shall be submitted to the Code Authority and the Administrator 
for approval, and upon such approval shall have the same force and 
effect as any other provision of this Code. 

Sec. 2. Within fifteeen (15) days after the approval by the Code 
Authority and the Administrator of the Executive Committees' 
recommendations and merchandising plans as provided for in Sec- 
tion 1 of this Article, each individual member of the division con- 
cerned shall file with the Secretary his plan for merchandising 
which shall supply the information required and shall be in the 
form approved by the Administrator. Such plan and any revision 
thereof shall remain in force unless and until superseded by the 
filing of a revised merchandising plan, revised price lists and/or 
discounts. The member's original plan and each revision thereof 
shall state the date on which it shall become effective, which date 
shall be not less than ten (10) nor more than twenty (20) business 
days after filing of same with the Secretary, and each other mem- 
ber of the division may file a similar revision to take effect upon the 
same date. The original merchandising plan and all revisions 
thereof filed by each member shall be made available by the Sec- 
retary to all other m.embers of the division. 

Sec. 3. No member shall sell any article at prices lower or dis- 
counts greater or on terms more favorable than those which he has 
currently on file with the Secretary. 

Sec. 4. Original and revised price lists and/or discounts filed with 
the Code Authority, as hereinbefore provided, shall be available 
through the Secretary to all members of the Industry who handle 
a similar line of goods. 

Sec. 5. No member of the industry shall sell or offer to sell under 
customer's private labels, or otherwise, qualities other than those 
which he has filed with the Secretary as provided in this article, or 
use grading of qualities as a method of giving buyers extra value 
over that provided in the member's published grades and terms. 

Sec. 6. Many members of the industry sell their products through 
agents, distributors, jobbers, wholesalers, and/or contractors, while 
others sell their products directly to the ultimate user. In order to 
prevent indirect evasion of the provisions of this Article VHi by 
those members selling through agents, distributors, jobbers, whole- 
salers, and/or contractors, it is hereby provided that the Executive 



58 

Committee of each Division of this industry, subject to the approval 
of the Code Authority and the Administrator, shall prescribe appro- 
priate forms of contracts to be entered into bet^Yeen members of the 
industry and agents, jobbers, distributors, wholesalers, and/or con- 
tractors (excluding retailers) for the distribution of the products 
of this industry and the observance of such prices and terms as those 
currently filed with the Code Authority at which the manufacturer 
gells such products. 

Sec. 7. Except as may be subsequently set forth in a specific or 
supplementary export code for the industry, 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, are not to apply to direct export sales. The term " ex- 
port " applies to merchandise shipped to foreign countries other 
than possessions or territories of the United States. 

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 
time to cancel or modify any order, approval, license, rule, or regu- 
lation issued under said Act. 

Sec. 2. This Code, except as to provisions required by the Act, 
may be modified or amended on the basis of experience or changes 
in circumstances, such modification 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 Admmis- 
trator, unless otherwise provided, and when so approved shall have 
the same force and effect as any other provision of this Code. 

Article X — Monopolies 

No provision of this Code shall be so applied as to permit monopo- 
lies or monopolistic practices, or to eliminate, oppress, or discrim- 
inate against small enterprises. 

Article XI — Price Increases 

Section 1. Whereas the policy of the Act to increase real pur- 
chasing power will be made more difficult of consummation if prices 
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, 
eo 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 tenth day after its ap- 
proval by the Administrator, unless otherwise provided. 



Approved Code No. 199. 
Registry No. 308-1-01. 



o 



Approved Code No. 200 

CODE OF FAIR COMPETITION 

FOR THE 

SANITARY NAPKIN AND CLEANSING TISSUE 

INDUSTRY 

As Approved on January 12, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

SANITARY NAPKIN AND CLEANSING TISSUE INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act. approved June 16, 1933, for approval of a Code of 
Fair Competition for the Sanitary Napkin and Cleansing Tissue 
Industry, and hearings having been duly held thereon and the an- 
nexed report on said Code, containing findings with respect thereto, 
having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me b)^ Executive Orders of the 
President, including Executive Order No. C543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act ; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

HUGH S. JOHNSON, 
Adniiiiistrator for Industrial Recovery. 

Approval recommended : 
A. D. WHITESIDE, 

D iv is ion Administrator. 
Washington, D.C, 

January 12., 153Jf. 

30483"— 313-11 34 (59) 



The President, 

The White House. 



INTRODUCTION 



Sir : This is a report of the Administrator on the application for, 
and public hearing on, the Code of Fair Competition for the Sani- 
tary Napkin and Cleansing Tissue Industry as proposed by the Sani- 
tary Napkin and Cleansing Tissue Association. The public hearing 
was conducted in Washington on November 3, 1933. Every person 
who requested an appearance was freely heard in accordance with 
statutory and regulatory requirements. 

There are twenty-six (26) known firms in this Industry, of which 
eighteen (18) are members of the Association and account for 82% 
of all sanitary napkins and cleansing tissues produced. One of the 
nonmembers attended the public hearing and was heard. 

ECONOMIC AND STATISTICAL MATERIAL 

For 1929 the sales volume was almost $13,000,000 and employ- 
ment at about 900 to 1,000. The volume of sales for 1933 is esti- 
mated to be within 25% of the volume of 1929. The Industry at 
present gives employment to about 1,100 to 1,200 workers. Conse- 
quently, the Industry has more than absorbed its unemployed as 
measured from the 1929 level. With such figures at hand one can- 
not expect an appreciable increase in emplo3nnent under the pro- 
visions of the Code. Increased purchasing power is indicated, 
nevertheless, because it is estimated that with the proposed minimum 
wages there will be at least a 13% increase in pay rolls. The statis- 
tics at hand are based on June of 1933 as a representative month, 
when approximately 37% of the emploj^ees were working in excess 
of 45 hours per week w4th 60 hours or more per week, a top figure. 
Rates of pay were as low as 20?i per hour for workers although the 
weighted average would unquestionably demonstrate a more satis- 
factory rate. 

In this connection, it is important to remember that two manu- 
facturers control about 75% of the total volume. With such a 
concentration of production, the Administrator has had to weigh 
all provisions carefully so as not to eliminate or oppress small 
enterprises, who may not be as highly mechanized as their com- 
petitors and who do not enjoy the advantages of large volume. 

RESUME OF CODE PROVISIONS 

The Code establishes 41%^ per hour for men and 33l/3f^ per hour 
for women as the minimum rate of pay. The basic week for pro- 

(GO; 



61 

duction is 40 hours. Such provisions will require a substantial con- 
tribution toward national recovery from part of the Industry. I 
believe that more drastic limitations at this particular time would 
work a hardship upon the smaller firms in the industr3'. 

Trade practices are standard and may be expected to create a 
degree of stability which heretofore has been notably lacking. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter; 

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
l^oses of Title I of the National Industrial Kecovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant asso- 
ciation is an industrial association truly representative of the afore- 
said Industry; and that said association imposes no inequitable 
restrictions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said 
Code. 

For these reasons, the Code has been approved. 
Respectfully, 

HUGH S. JOHNSON, 

A dministrcUor, 
January 12, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

SANITARY NAPKIN AND CLEANSING TISSUE 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 Sanitary Napkin and Cleansing Tissue 
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 " Sanitary Napkin and Cleansing Tissue Industry " 
hereinafter called " the Industry ", as used herein includes the manu- 
facture, conversion, and/or primary distribution of sanitary nap- 
kins, cleansing tissues, and other similar products and such branches 
or subdivisions thereof of as may from time to time be included 
under the provisions of this Code. 

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

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

The term " member of the Industry " as used herein includes any- 
one engaged in the Industry as above defined, either as an employer 
or on his own behalf. 

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

Population and metropolitan districts for the purposes of this 
Code shall be determined by reference to the 1930 Federal Census. 

Article III — Hours 

1. No employee shall be permitted to work in excess of 40 hours 
in any one week or 8 hours in any 24-hour period, except — 

(a) Em))loyees engaged exclusively in an executive or managerial 
cai)acity who are receiving $35.00 or more per Aveek. 

(b) Outside salesmen; 

(62) 



)3 



(c) Office employees, who shall be permitted 4 hours per week in 
addition to the maximum herein established but who shall not be 
permitted to work more than an average of 40 hours per week in any 
consecutive 3 months' period. 

2. The maximum hours fixed in the foregoing section shall not 
apph* to an}' employee engaged in emergency work involving break- 
downs or protection of life or property, but in any such special case 
employees shall be paid at the rate of not less than one and one third 
times the established rate for each hour worked in excess of 8 hours 
in any one day and/or 40 hours in any one week. 

3. No female employee shall be required or permitted to work be- 
tween the hours of 8 p.m. and 6 a.m. 

Article IV — Wages 

1. No employee, except as provided in Section 2 of this Article, 
shall be paid at less than the rate of 331/3^ per hour for women, 
and 41%^ per hour for men. This minimum wage shall not in any 
way be considered as a discrimination by reason of sex, and where 
in any case women do substantially the same work, or perform sub- 
stantially the same duties as men, they shall receive the same amount 
of wages as men receive for doing such work or performing such 
duties. 

2. No accounting, clerical, office, service, or sales employee shall 
be paid at less than the rate of $15.00 per week in any City of over 
500,000 population, or in the Metropolitan District; or less than, 
at the rate of $14.50 per week in any City between 250,000 and 
500,000 population, or in the Metropolitan District; or less than 
at the rate of $14.00 per week in Cities of 250,000 or less, or in the 
Metropolitan District. 

3. This Article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time rate, piecework, or 
other basis. 

4. There shall be an equitable adjustment of all wages above the 
minimum. Within sixty (60) days of the effective date of this Code, 
the Code Authority shall present a proposal for such adjustment to 
the Administrator, such proposal to become binding as a part of this 
Code upon approval by the Administrator after such hearing as he 
may prescribe, provided, however, that in no event shall hourly rates 
of pay be reduced below those in effect for the 4 weeks ended June 
17, 1933. 

5. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a 
'wage below the minimum established by this Code if the employer 
obtains from the State Authority or other agency 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. 

Artici-e V — General Labor Provisions 

1. No person under 16 years of age shall be emploj'cd in the In- 
dustr}'', nor anyone under 18 years of age at operations or occupa- 



64 

tions hazardous in nature or detrimental to health. The Code Au- 
thority shall submit to the Administrator within 30 days after this 
Code is approved a list of such occupations. In any State an em- 
ployer 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 Stat^ empowered to issue employment certificates, showing 
that the employee is of the required age. 

2. Employees shall have the right to organize and bargain col- 
lectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers 
of labor, or their agents, in the designation of such representatives, 
or in self-organization, or in other concerted activities for the 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 
refrain from joining, organizing, or assisting a labor organization 
of his own choosing. 

4. Employers shall comply with the maximum hours of labor, 
minimum rate,s of pay, and other conditions of employment ap- 
proved or prescribed by the President. 

5. Employers shall also comply with the hygienic regulations pro- 
mulgated by the United States Public Health Service. 

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

7. Employers shall not reclassify employees or duties of occu- 
pations performed by employees so as to defeat the purposes of 
the Act. 

8. Each employer shall post in conspicuous places accessible to 
employees full copies of Articles III, IV, and V of this Code. 

Article VI — Administration 

To further effectuate the policies of the Act, a Code Authority is 
hereby constituted to administer this Code. 

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of seven members, or siich 
other number as may be approved from time to time by the Admin- 
istrator, to be selected as hereinafter set forth, and of such addi- 
tional members, without vote, as the Administrator, in his discretion, 
may appoint to represent such groups or governmental agencies as 
he may designate. 

(b)'Each member of the Industry who qualifies as prescribed in 
Section 2 of this Article shall have one vote in the nomination and 
election of the members of the Code Authority, such nomination and 
election to be arranged by the proponents of the Code within one 
month of the effective date thereof, unless otherwise provided with 
the approval of the Administrator. In the interim, the Code Com- 
mittee of the Sanitary Napkin and Cleansing Tissue Association shall, 
act in this capacity. In order that the Code Authority shall at allF 
times be truly representative of the Industry and in other respects 
comply with the provisions of the Act, the Administrator may pro- 



65 

vide 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 otlier respects comply with the provisions of the Act, may 
require an appropriate modification in the method of selection of the 
Code Authority. 

(c) The Code Authority shall coordinate the administration of 
this Code with such Codes, if any, as may affect any division or sub- 
division of this or a kindred Industry, with a view to promoting 
joint action upon matters of common interest. 

(d) Each 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 As- 
sociation, By-Laws, Regulations, and any amendments wdien made 
thereto, together with such other information as to membership, or- 
ganization, and activities as the Administrator may deem necessary 
to effectuate the purposes of the Act. 

2. Members of the Industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority, to par- 
ticipate in the selection of the members thereof and to use the N.K.A. 
Code insignia by assenting to and complying w^ith the requirements 
of this Code and sustaining their reasonable share of the expenses of 
preparation, presentation, and administration of this Code. The 
reasonable share of such expenses shall be determined by the Code 
Authorit}^, subject to approval b}' the Administrator, on the basis of 
volume of business and/or such other factors as may be deemed 
equitable to be taken into consideration. 

3. The Code Authority shall have, to the extent permitted by the 
Act, the following powers and duties : 

(a) Such agency may from time to time present to the Admin- 
istrator recommendations based on conditions in this Industry as 
they may develop which will tend to effectuate the operation of (he 
provisions of this Code. Such recommendations, upon approval by 
Administrator as provided in Article VIII, Section 2, shall become 
operative as part of this Code. 

(b) Such Agency shall receive complaints of violations of this 
Code, make investigations thereof, and bring to the attention of the 
Administrator recommendations and information relative thereto 
for such action as in his discretion the facts warrant. 

(c) Members of the Industry shall file with the Code Authority 
at such time and in such manner as may be prescribed, statistics 
covering number of employees, wage rates, employee earnings, hours 
of work, and su:h other data as may be required by the 
Administrator, 

(d) Every member of the Industry i-hall compile and forward 
to the Code Authority a complete list of items, showing all prices, 
terms and discounts to this chiss of trade. 

(e) As soon as practicable the Code Authority shall reconnnend a 
method of determining cost of production and shall formulate regula- 
tions for its application, such method and regulations upon approval 
by the Administrator us provided in Article VIII, Section 2, shall 
become operative as part of this Code. In formulating such regula- 
tions, the Code Authority shall take into consideration the necessity of 



66 

selling below cost to meet competition, to dispose of discontinued 
lines and seconds and other pertinent factors. 

(f) Standard trade customs for the Industry (including deliv- 
eries, contracts, sales on consignment, cash discount terms, quantity 
price, standardization features, and sales of seconds) shall be for- 
mulated by the Code Authority; subject to the approval of the Ad- 
ministrator after due notice and hearing, they shall be binding upon 
every member of the Industry. 

(g) 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 Administra- 
tor. 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. 

(h) If it shall be represented to the Administrator by any in- 
terested party, or he shall determine upon his own motion, that any 
action of the Code Authority, or of any subdivision Code Authority, 
is unfair to any private interest or contrary to the public interest, 
the Administrator may require that such action be suspended for a 
period of not to exceed thirty (30) days to afford an opportunity 
for investigation of the merits of such complaint and further con- 
sideration by the Code Authority pending final action, to be taken 
only upon approval by the Administrator. 

5. In addition to the information required to be submitted to the 
Code Authority, there shall be furnished to the Government agencies 
such statistical information as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the Act. 

Article VII — Trade Practices 

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

(a) False Marching or Branding. — The false marking or brand- 
ing 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. 

(b) Secret Relates. — The secret payment or allowance of rebates, 
refunds, commissions, credits, or unearned discounts, whether in the 
form of money or otherwise, or the secret extension to certain pur- 
chasers of special services or privileges not extended to all purchasers 
on like terms and conditions. 

(c) Commercial Bribery. — No member of the Industry shall give, 
permit to be given, or directly offer to give, anything of value for 
the purpose of influencing or rewarding the action of any employee, 
agent, or representative of another in relation to the business of the 
employer of such employee, the principal of such agent or the 
represented party, without the knowledge of such employer, prin- 
cipal, 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 hereinabove defined. 



G7 

(d) Interference with Contractual Relations. — Maliciously in- 
diicinjr or attemptiiin: to indiico the breach of an existing oral or 
written contract bt'tween a competitor and hi,^ customer or source 
of sujiply, or interfering with or obsti-uctinu- the perfoiinance of 
any such contractual duties or services. 

(e) Defavmt'ion. — The defamation of comjietitors by falsely im- 
puting to them dishonorable conduct, inability to perform con- 
tracts, (piestionable credit standing, or by other false representa- 
tions or by the false disparagement of the grade or quality of their 
goods. 

(f) Im'itai'wn of J'rade Mark or Trade Namr or Style Firaoj. — 
The imitation of trade marks, trade names, slogans, or other marks 
of identification of competitors, having a tendency and capacity to 
mislead or deceive purchasers or prospective purchasers. 

(g) Price Discrimination.— X.ny discrimination in price between 
purchasers of the same class (not including discrimination in price 
on account of difference in grade, quality, or quantity of the product 
sold, or which makes only due allowances for difference in cost of 
selling and transportation) or discrimination in price in the same or 
different communities not made in good faith to meet competition. 

(h) Misreprescntafion or False w 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 the credit terms, values, poli- 
cies, or services of any member of the Industry, or otherwise, having 
the tendency or capacity to mislead or deceive customers or prospec- 
tive customers. 

(i) Requiring Chain Furchases. — To sell any product or products 
on condition tliat the purchaser will also purchase another product 
or ])roducts made or sold by the same member of the Industry; or 
to sell such product or products at reduced prices or on special terms 
or under special conditions to induce the buyer to purchase such 
other ])roduct or products. Each member of the Industry shall sell 
each different line of merchandise independently and shall not cut 
the price of one with the provision that other lines be purchased 
or require a purchaser to ]:>urchase one class of merchandise as a 
consideration for being allowed to purchase another. This regula- 
tion does not govern the distribution of bona fide samples. 

(j) All sales shall be made strictly in accordance with such price 
lists as provided for in Article VI, Section 3 (d). 

(k) Excei)t under regulations established in Article VI, Section 
3 (e) it shall be a prohibited unfair method of competition for mem- 
bers of the Industry to sell any of their products below tlieii- cost 
of production except in accordance with such regulations. 

Akttcle VIII — MoniFICATIOX 

1. This Code and all the provisions thereof are expresslv made 
subject to the right of the President, in accordance with the pro- 
visions of subsection (b) of Section 10 of the National Industruil 
Recovery Act, fr(mi time to time to cancel or modify any order, ap- 



68 

proval, license, rule, or regulation issued under Title I of said Act, 
and specifically, but without limitation, to the right of the President 
to cancel or modify his approval of this Code or any conditions im- 
posed by him upon his approval thereof. 

2. After due notice and hearing this Code may be amended upon 
a recommendation of the Code Authority or any interested party or 
group or upon the Administrator's own notice, and any modifica- 
tions so arrived at shall be effective when approved by the Admin- 
istrator. 

Article IX — Monopolies 

No provision of this Code shall be so applied as to permit monop- 
olies or monopolistic practices, or to eliminate, oppress, or discrimi- 
nate against small enterprises. 

Article X — Price Increases 

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

Article XI — Effective Date 

This Code shall become effective on the seventh day after date. 



Approved Code No. 200. 
Registry No. 299B-30. 



o 



Approved Code No. 201 
CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALING OR DISTRIBUTING TRADE 

As Approved on January 12, 1934 

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 ^Wholesaling or Distributing Trade, 
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 res])ect thereto, and the Administrator having found that the 
said Code of Fair Competition complies in all respects with the 
pertinent provisions of Title I of said Act and that the 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 Stat-es, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do ado]it 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. Johnsox, 

Adininistrator. 

The White House, 

Januwy 12, 1934. 

(69) 



80228" 313-2 34 



The President, 

The White nouse. 
Sir : This is a report of the Hearino; on the Code of Fair Compe- 
tition for the Wholesaling or Distributing Trade, conducted in the 
Ballroom of the Mayflower Hotel, on November 13, 1933. The Code 
which is attached was presented by duly qualified and authorized 
rei)resentativcs of the Trade, complying with the statutory require- 
ments, said to represent 75 percent in number and over 80 percent in 
volume of the Trade which could be included in this code. 

THE TRADE 

The Wholesale Trade according to the Census of Distribution 
(1929) is made up of 169,702 establishments with net sales of 
$69,291,545,000. However, a substantial portion of the wholesale 
trade comes under codes developed under the Agricultural Adjust- 
ment Administration, or previously covered under N.R.A. manufac- 
turing and distribution codes. A net total of 45.043 establishments 
with net sales of $15,323,429,000 are under the Wholesaling or Dis- 
tributing Trade Code as submitted. Approximately 460,000 em- 
ployees are affected by this code. 

It is estimated that somewhat more than 80 percent of the em- 
ployees in the Trade were working more than 40 hours per week, 
40 i:>ercent more than 45 hours per week, and 20 percent more than 
48 hours per week. The 40-hour week provided in this code should 
result in an increase in total employment of between 10 and 15 per- . 
cent. This should absorb about half of the unemployment in the 
Trade as compared with 1929. 

PROVISIONS OF THE CODE 

The code provides for a work week of 40 hours. Outside deliv- 
erymen, maintenance men, outside repair service men, and installa- 
tion men are permitted to work 48 hours per week. Provision is 
made whereby an employer may work an employee such hours as 
may be necessary in excess of the hours mentioned above if time and 
one third is paid for such additional hours i)er week. 

The rates of pay are $15.00 per week in cities of over 500,000 pop- 
ulation, or in the immediate vicinity and $14.00 per week in cities 
of less than 500.000 population or in the immediate vicinity. 

The trade practices ])roposed in Article VII of the Code are not 
in any respect objectionable. Article VIII, Section 1, provides for 
the possibility of setting up price differentials between different 
classes of buyers, thus recognizing the functional discount desii^d by 

(70) 



71 

■wholesalers and distributors. All actions of this type are with the 
advice and subject to the approval of the Administrator. 

The administration of tlie Code is organized in accordance with 
commodity divisions. 

FINDINGS 

I find that: 

(a) The Code will promote the policies and purposes of Title I of 
the Act, including removal of obstructions to the free flow of inter- 
state and foreign commerce which tend to diminish the amount 
thereof and will provide for the general welfare by promoting the 
organization of industry for the purpose of cooperative action among 
the trade groups, by inducing and maintaining united action of labor 
and management under adequate governmental sanctions and super- 
visions, by eliminating unfair competitive practices, by promoting 
the fullest possible utilization of the present productive capacity of 
industries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 

. power, by reducing and relieving unemployment, by improving 
standards of labor and otherwise rehabilitating industry. 

(b) Said Trade normally employs more than 50,000 employees; 
and is classified by me as a major industry. 

(c) The Code as approved complies in all respects with perti- 
nent provisions of Title I of the Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the 26 applicant groups 
are trade groups truly representative of the aforesaid Trade; and 
that said groups impose no inequitable restrictions on admission to 
membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

1(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and wil not operate to discriminate against them, 
(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 
For these reasons, I recommend that the Code be approved. 
Respectfully, 

Hugh S. Johnson, 
. Administrator. 

\ January 1, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE OR DISTRIBUTING TRADK 

Article I — Purposes 

To effectuate the policies of Title I of the National Industriar 
Recovery Act, the followin<2: provisions are established as a Code of 
Fair Competition for the Wholesaling or Distributing Trade, and 
shall be the standard of fair competition for such trade. 

Article II — Definitions 

Wholesaler or Dhinhutor. — For the purposes of this Code, a. 
" wholesaler " or " distributor " shall be defined as any individual,, 
partnership, association, corporation, or other firm, or a definitely 
organized division thereof, definitely organized to render and ren- 
dering a general distribution service, which buys and maintains at 
his or its place of business a stock of the lines of merchandise which 
it distributes; and which through salesmen, advertising, and/or sales- 
promotion devices, sells to retailers and/or to institutional, commer- 
cial, and/or industrial users; but which does not sell in significant 
amounts to ultimate consumers. Modifications or extensions to this 
definition or any part of it may be made for specific divisions when 
embodied in an}^ appropriate supplemental code or when recom- 
mended by the appropriate Divisional Code Authority and approved 
b}' the Administrator. 

^ The Trade. — The term " trade " is defined to be the business in 
which wholesalers or distributors engage. 

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. 

Employees. — The term " emploj^ee " as used herein includes any- 
one 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 an3^one 
b}^ 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 the Administrator appointed under Title I of said Act. 

Population for the pur])oses of this Code shall be determined by 
reference to the 1930 Federal Census. 

Article III — Hours 

Section 1. Maximum Hours and Exceptions. — (a) No whole- 
saler or distributor shall cause or permit any employee, except an. 

(72) 



73 

•employee in an executive, supervisory, technical, or professional 
.capacity who receives thirty-five dollars ($35.00) per week, or more, 
in cities of 500,000 population or over; or thirty dollars ($3 J.OO) 
per week, or more, in cities of less than 500,000 population, and except 
watchmen and outside salesmen, to work more than forty (40) hours 
per week or to work more than six (6) days in any one week (or less 
as determined by the Code Authority of any specific trade), except 
that any member of the trade ma}^ cause or permit : 

(b) No employee except those exempted in paragraph (a) of this 
Section shall work more than eight (8) hours in any one day, except 
that on one day each week each employee may work one extra hour, 
but such hour is to be included within the maximum hours permitted 
each week. 

(c) Outside deliverymen, maintenance men, outside repair service 
men and installation men to work forty-eight (48) hours ])er week. 

(d) Watchmen shall work not more than fifty-six (56) hours nor 
more than six (6) days in any 7-day period. 

(e) An employer may work an employee such hours as may be 
necessary in excess of the hours specified in paragraphs (a) and (c) 
■of this Section if time and one third is paid for all such additional 
hours per week. 

(f ) The hours worked by any one employee in any one day shall be 
■consecutive with tlie exception of a reasonable period out for lunch. 

Sec. 2. Em/ployiiient hy Several Einployees. — No employer shall 
'knowingly permit any employee to work for any time which, when 
totaled with that already performed with another employer or em- 
ployers in this trade/industry, exceeds the maximum permitted 
herein. 

Article IV — Wages 

Sectiox 1. Minimuni Rates of Pay. — The minimum rates of pay 
shall be as follows : 

(a) In cities of 500,000 population or over, or in the immediate 
vicinity thereof, at the rate of fifteen dollars ($15.00) per week. 

(b) 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) In the South at the rate of one dollar ($1.00) per week less 
than the rates specified above in paragraphs (a) and (b). 

The term " the South " means the following states: Virginia, West 
Virginia, North Carolina, South Carolina, Georgia, Florida. Ken- 
tucky, Maryland, District of Columbia, Tennessee, Alabama, Missis- 
:sippi, Arkansas, Louisiana, Oklahoma, and Texas. 

(d) A part-time employee or one paid on an hourly basis shall be 
paid at an hourly rate not less than that obtained by dividing the 
api)roi)riate minimum weekly wage specified for him in previous 
paragraphs of this Section by the appropriate maximum number of 
hours specified for him in Article III. 

Wages paid during any period to employees on a piece-rate basis 
tshall aggregate an hourly rate not less than that specified above for 
part-time employees and than paid on an hourly basis. 

(e) Junior employees between the ages of 16 and 18 j^ears, in- 
clusive, may be paid at the rate of two dollars ($2.00) less per week 
than the minimum wage rate per week otherwise applicable to them 
ior the fii'st 12 months of their employment; and learners over 18 



74 

years of age may, for a period of three months from the date of their 
employment, be paid at the rate of one dollar ($1.00) less per week 
than the minimum wage per week otherwise applicable to them. 
The number of employees classified as juniors or learners combined 
shall not exceed the ratio of one such employee to every five employ- 
ees or fraction thereof up to twenty (20) or more than one such 
employee for every ten (10), or fraction thereof, employees above 
twenty (20). 

(f) Female emploj^ees performing substantially the same work 
as male employees shall have the same rate of pay as such male 
employees. 

(g) Wages shall be paid weekly or semimonthly in lawful money 
or by negotiable check. 

Sec. 2. No employee whose normal full-time weekly hours prior 
to 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 V — General Labor Provisions 

Section 1. Minhnuvi Age Requirements. — No person under IQ 
years of age shall be employed by any wholesaler or distributor, nor 
anyone under 18 years of age, at operations or occupations hazardous 
in nature. The Code Authority shall submit to the Administrator . 
within thirt}^ days a list of such occupations. In any State an em- | 
ployer 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. 

Section 2. Employees^ Rights and Employers'^ Duties. — (a) Em- 
ployees shall have the right to organize and bargain collectively 
through representatives of their own choosing, and shall be free from 
the interference, restraint, or coercion of employers of labor, or their 
agents, in the designation of such representatives or in self -organiza- 
tion or in other concerted activities for the purpose of collective 
bargaining or other mutual aid or protection. 

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

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

Sec. 3. Precedence of State Laws.—^o provision in this Code 
shall supersede any State 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. 4. Reclassification of Employees. — No employer shall reclas- 
sify employees or duties of occupations performed or engage in any 
other subterfuge for the purpose of defeating the purposes or pro- 
visions of the Act or of this Code. 



75 

Sec. 5. Posting Code. — Each employer shall post in conspicuous 
places, accessible to employees, copies of Articles I to V, inclusive, 
of this Code. 

Article YI — Codes and the Administration Thereof 

Section 1, General and Supple/niental Codes. — (a) To provide an 
effective procedure for the administration of this code, and all codes 
supplemental thereto, the trade shall be divided into connnodity di- 
visions, as liereinafter provided. 

(b) Provisions governing wholesalers or distributors in all com- 
modity divisions shall be included in this general code. 

(c) Provisions governing wholesalers or distributors in one or 
more, but not in all commodity divisions, iwd^y be embodied in a sup- 
plemental code for each division, after hearing before the Adminis- 
trator and approval by the President. 

Sec. 2. Creation and Organisation of General Wholesale and Divi- 
sional Wholesale Code Authorities. — (a) The creation of a General 
Code x^Luthority to cooperate with the Aduiinistrator in the adminis- 
tration of the provisions of the General Code is hereby authorized, 
and the creation of a Divisional Code Authority for each Division 
of the Trade to cooperate with the Administrator in administering 
the provisions of its Supplemental Code is hereby authorized, 

(b) For the purposes stated in this Section, the following Com- 
modity Divisions are hereby pro\:ided:^ 

Beauty and Barber Supplies 

Buttons 

Charcoal and Packaged Fuel 

Cycle Jobbers 

Dry Goods 

Electrical Supplies 

Embroidery and Lace 

Floor Covering 

Furriers' Supplies 

Hardware 

Hats and Caps 

Jewelry (including Watchmakers' and Jewelers' Supplies) 

Men's Novelty Jewelry 

Men's Wear Buttons 

Notion, Thread & Women's Garments 

Supplies 

Radio 

School Supplies 

Sheet Metal 

Silverware 

Twine and Cordage 

Upholstery and Decorative Fabrics 

Wall Paper 

Woolen and Trimming Garment Supplies 

1 others may be added from time to time and surh further Divisions as the Adminis- 
trator may fliid to be duly representative. Provided that the Administrator after due 
notice and hearing, may amend these Divisions by enlarginR or contracting them, or by 
consolidating or further dividing one or more of such Divisions. 



7? 

(c) The General Code Authority shall consist of one or more mem- 
bers of each Divisional Code Authority, the precise number to be 
determined by the Administrator. Such members shall be elected 
by the members of each Divisional Code Authority in accordance 
with a fair method approved by the Administrator. The Adminis- 
trator may appoint not more than three members, without vote, to 
serve for the term of six and twelve months, respectively, from the 
date of appointment. 

(d) Until such time as the General Code Authority is elected in 
the manner provided in the foregoing paragraph and until such time 
as a representative number of supplemental codes have been ap- 
proved, the Administrator shall appoint one member of each Com- 
modity Division to act as a member of the General Code Authority. 

(e) The Divisional Code Autliority for each Division shall be 
composed of not less than three (3) nor more than twenty-one (21) 
wholesalers or distributors, or representatives thereof, in such Divi- 
sion^ who shall be elected, in accordance with a fair method, as pro- 
vided in the supplemental Code of each Division, The Adminis- 
trator may appoint two members, without vote, to serve for the term 
of six months respectively from the date of appointment. 

Sec. 3. Duties of Trade xissociationH — Code Authorities to be 
Representative. — (a) Each Trade Association directly or indirectly 
participating in the selection or activities of the General and/or 
Divisional Code Authorities shall: (1) impose no inequitable re- 
strictions on membership, and (2) submit to the Administrator true 
copies of its articles of association, b^'-iaws, regulations, and any 
amendments when made thereof, together Avith such information as 
to membership, organization, and activities as the Administrator 
may deem necessary to eifectuate the purjiose of the xVct. 

(b) In order that the General and Divisional Code Authorities 
shall at all times be trul}^ 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 General Code Authority or any Divisional 
Code Authority is not truly representative or does not in any other 
respect comply with the provisions of the Act, may request an appro- 
priate modification in the method of selection of any such Code 
Authority. 

Sec, 4. Assenting to Code and Payment of Cost of Administra- 
tion. — Wholesalers or distributors shall be entitled to participate in 
and share the benefits of the activities of their Divisional Code xVu- 
thority, and through such Divisional Code Authority, to participate 
in and share the benefits of the activities of the General Code Au- 
thority, by assenting to and compl3^ing with the requirements of 
such Codes and sustaining their reasonable share of the ])roper ex- 
penses of their administration. Such reasonable share of the proper 
expenses of the administration of the General Code Authority and 
of any divisional Code Authority shall be determined by each Au- 
thority, res])ectively, subject ui)on review to the disap])roval of the 
Administrator, on the basis of volume of business, the number of 
Divisions in which a member may operate, and the extent of his op- 
erations in each Division, and/or such other factors as may be deemed 



77 

equitable to be taken into consideration. The share of the cost of 
sucli administration, as so equitably assessed, shall be collected by 
the several Divisional Code Authorities from the members of the 
Trade in their respective Divisions. 

Sec. 5. Pollers of General and Divisional Code Authorities. — 
(a) The General Code Authority shall have the power, subject upon 
review to the disapproval of the Administrator in addition to other 
powers herein granted : 

(1) To coordinate the interests of the several divisions and the 
activities of the several Divisional Code Authorities so as to pre- 
vent conflicts of authority and to minimize overlapping of powers; 
and 

(2) To hear all matters pertaining to the provisions of the Gen- 
eral Code which may be submitted to it by any Divisional Code 
Authority; and 

(3) To attempt to adjust and/or to report the same to the Ad- 
ministrator; and 

(4) To exercise any other general and lawful powers which may 
be necessary to secure performance of the provisions of the Act. 

(b) Each Divisional Code Authority shall have the following 
powers : 

First. With respect to the provisions of the General Code which 
govern all Divisions of the Trade, each Divisional Code Authority, 
subject tf) the approval or request of the General Code Authority: 

(1) Shall require from wholesalers or distributors in the Divi- 
sion which it represents such reports as are necessary to effectuate 
the Durnoses of the General Code; and 

(2) May. upon its own initiative or complaint of any wholesaler 
or distributor in such Division, make investigations as to the func- 
tioning and observance of any provision of the General Code; and 

(3) May hear and attempt to adjust such complaints, and 
Pr'>vide(l. however, that any wholesaler or distributor who may 

be affected by the action or handling of matters pertaining to any 
provision of the General Code by his Divisional Code Authority, 
shall have the right to have such matter submitted to and con- 
sidered by the General Code Authority for its action, as provided in 
Section 5 (a) of this Article. 

Second. With respect to the specific provisions of the Supple- 
mental Codes which govern one or more, but not all, Divisions of the 
Trade, each Divisional Code Authority, subject to the approval or 
consent of the Administrator: 

(1) Shall require from wholesalers or distributors in its Division 
such reports as are necessary to effectuate the purposes of its 
Su})ple?nental Code; and 

(2) May, ujx)n its own initiative or complaint of anv wholesaler 
or distributor in such Division, make investigation as to the function- 
ing and observance of any provision of its Supplemental Code; and 

(3) May hear and attemnt to adjust such complaints: and 

(c) In the event that a Divisional Code Authority should report 
any matter referred to in the " Secopd " part of the above paragraph 
to the Administrator which affects any provision of the General 
Code, the Administrator may if he desires refer such matter to the 



78 

General Code Authority for handling as if such matter had been 
directly submitted to the General Code Authority by such Divisional 
Code Authority, as provided in the " First " part of the above 
paragraph. 

Sec. 6. Inforviation for Government Agencies. — In addition to 
the information required to be submitted to the General Code 
Authority and to the Divisional Code Authorities, 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. 

Sec. 7. Administrative Interpretations. — The Administrator shall 
from time to time, after consultation with the General Code Author- 
ity and/or with a Divisional Code Authority, issue such adminis- 
trative interpretations of the various provisions of the General Code, 
or of any supplemental Code, respectively, as are necessary to 
effectuate their purpose. 

Sec. 8. Undue Hardships Imposed hy Codes. — Where the admin- 
istration of the provisions of the General Code impose an unusual 
or undue hardship upon any wholesaler or distributor, or upon any 
Division, or where the administration of the provisions of any Sup- 
plemental Code imposes an unusual or undue hardship upon any 
wholesaler or distributor affected thereby, such wholesaler or dis- 
tributor, or such division, may make application for relief to the 
Administrator, who, after such public notice and hearing as he may 
deem necessary, may grant such exceptions to or modifications of 
the provisions of the General Code, or of any Supplemental Code, 
as the case may be, as may be required to effectuate the purposes of 
the Act. 

Article VII — Trade Practices 

Section 1. Inax^curate Advertising. — No member of the trade 
shall publish advertising (whether printed, radio, display, or of 
any other nature), which is misleading or inaccurate in any ma- 
terial 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. 

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

Sec. 3. Inaccnrate Labelling. — 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 purchasers with respect to the brand, grade, 
quality, quantity, origin, size, substance, character, nature, finish, 
material content, or preparation of such goods. 

Sec. 4. Inaccurate Reference to Competitors., etc. — 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. 

Sec. 5. Threats of Law Smts. — No member of the trade shall pub- 
lish or circulate unjustified or unwarranted threats of legal proceed- 
ings which tend to or have the effect of harassing competitors or in- 



79 

timidating their customers. Failure to prosecute in due course shall 
be evidence that any such threat is unwarranted or unjustified. 

Sec. 6. Secret Rehates. — No member of the trade shall secretly and 
directly 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 trade 
secretly offer or extend to any customer any special service or privi- 
lege not extended to all customers of the same class, for the purpose 
of influencing a sale. 

Sec. 7. Bnbing E^nployees. — No member of the Trade shall give, 
permit to be given, or directly offer to give, anything of value for 
the purpose of influencing or rewarding the action of any employee, 
agent or representative of another in relation to the business of the 
employer of such employee, the principal of such agent or the repre- 
sented 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 com- 
mercial bribery as hereinabove defined. 

Sec. 8. Interference with Another's Contracts. — No wholesaler 
shall attempt to induce the breach of an existing contract between 
a competitor and his employee or custf)mer or source of supply; 
nor shall any such wholesaler interfere w^ith or obstruct the per- 
formance of such contractual duties or services. 

Sec. 9. Coercion. — No member of the trade shall require that the 
purchase or lease of any goods be a prerequisite to the purchase or 
lease of any other goods. 

Sec. 10. Protection to Retailers. — It shall be an unfair trade prac- 
tice for Wholesalers who secure a substantial portion of their business 
from members of the retail trade to enter into competition with re- 
tailers by selling merchandise at wholesale prices to ultimate con- 
sumers for personal use or to sell to civic, institutional, and/or simi- 
lar types of wholesale customers, merchandise for the personal use 
of employees of such customers. Nothing in this section, however, 
shall prevent bona fide sales by such wholesalers to their own em- 
ployees of merchandise that is for the personal use of such employees. 

Article VIII — Permissive Trade Practices 

Section 1. Differentials. — In anj' division in which manufacturers, 
importers, mills, or other primary sellers sell coincidentally to several 
classes of buyers the Divisional Code Authority, subject to the ap- 
proval and with the advice of the Administrator, may arrange for a 
conference of all interested parties, including primary sellers or the • 
Code Authority governing them, for the purpose of defining and 
establishing price differentials which shall be fair and reasonable in 
relation to the nature and extent of the distributing services and 
functions rendered by each buying class. Such differentials shall 
include all elements affecting the net price, such as discounts, terms, 
and allowances. 

The Divisional Code Authority, with the advice and consent of 
the administrator and after all interested parties shall have been 
given an opportunity to be heard on the matter, shall formally an- 



80 

noiince the price differentials which are deemed fair on specific prod- 
ucts. When the Divisional Code Authority announce that a fair 
wholesale price differential has been established on any product by 
sources competent to adequately serve the wholesalers in the Division, 
then and thereafter, or until the Divisional Code Authority an- 
nounces that such fair price differentials have been discontinued, it 
shall be an unfair trade practice for a wholesaler or distributor to 
handle such product unless the price at which it is sold to him allows 
or provides for such fair price differential. 

Nothing in this section shall be construed to abridge the right of 
manufacturers to sell direct to retailers or the right of retailers to 
buy direct from manufacturers. 

Nothing in this section shall be construed to prevent reasonable 
and fair price differentials from being allowed on the basis of quan- 
tity purchased or such other factors as the Administrator shall deem 
proper. 

Sec. 2. Other Unfair Trade Practices. — Subject to the approval of 
the President after hearing there may be established, in any Supple- 
mental Code, trade practice rules covering sucli other subjects as 
conditions in its specific Division may require, together with regu- 
lations concerning such principles as loss limitation, selling below 
cost, price reporting. Any violation of these provisions shall be an 
unfair trade practice. 

Article IX — Prison-Made Goods 

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

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

(b) Except as provided in the foregoing paragra])h, no whole- 
saler or' distributor shall knowingly buy or contract to buy any mer- 
chandise produced in whole or in ]:)art in a penal, reformatory, or 
correctional institution. After May 31, 1934, no wholesaler or dis- 
tributor shall knowingly sell or offer for sale such merchandise. 
Nothing in this section, however, shall affect contracts, which the 
wholesaler or distributor does not have the option to cancel, made 
with respect to such merchandise before the approval of this code 
by the President of the United States. 

(c) Nothing in this section shall be construed to supersede or 
interfere with the o])eration of the Act of Congress approved Janu- 
ary 19, 1929, being Public No. 669 of the 70th Congress and entitled 
"An Act to divest goods, wares, and merchandise manufactured, pro- 
duced or mined by convicts or prisoners of their interstate character 



81 

in certain cases ", which Act is known as the Hawes-Cooper Act, or 
the })r()visi()ns of any State legislation enacted under, or effective 
upon, the effective date of the said Hawes-Cooper Act, the said 
effective date being January 19, 1934. 

Article X — Modification 

Section 1. This General Code and all codes supplemental thereto, 
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 
anj^ order, ai)pr()val, 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 these Codes or 
any conditions imposed by him upon his approval thereof. 

Sec. 2. This General Code and all codes supplemental thereto, ex- 
cept 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 Administrator. 

Article XI — ISIonopolies 

Xo ])rovision of this General Code, nor of any codes supplemental 
thereto, shall be so ai)})Iied as to permit monopolies, or monopolistic 
practices, or to eliminate, oppress, or discriminate against small 
enterprises. 

Article XII — Application or Code 

Every wholesaler or distributor, except those who on the effective 
date of this code are governed by any other code of fair com])eti- 
tion under the administration of the National Recovery Adminis- 
tration or the Agricultural Adjustment Administration, shall be 
bound by all the provisions of this General Code and by all the 
provisions of each and every Supjjlemental Code applicable to him, 
when such General Code and/or such Supplemental Code or Codes 
shall have ])een apju'oved by the President, except those wholesalers 
or distributors, who within sixty (GO) days after the effective date 
of this Code file with the Administrator applications for exemptions 
to this code or any portion thereof, which after due consideration by 
the Administrator are sustained. 

Article XIII — EFrECTi\TE Date 

This General Code and all codes supplemental thereto shall be- 
come effective on the 10th day after date. 

Approved Code No. 201. 
Registry No. 1G25-50. 

O 



f 



Approved Code No. 202 
CODE OF FAIR COMPETITION 

FOR THE 

CARPET AND RUG MANUFACTURING INDUSTRY 

As Approved on January 12, 1934 

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 Carpet and Rug 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, subject to the con- 
dition that the provisions of Article VII, Section 19 (a) be stayed 
pending further investigation and determination by the Adminis- 
trator of the issues raised with respect thereto. 

FRANKLIN T>. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

January 12, 1934. 

32793° 313-71 34 (83) 



The President, 

The White House. 

Sir: This is the report on the Code of Fair Competition for 
the Carpet and Rug Manufacturing Industry as proposed by the 
Institute of Carpet Manufacturers of America, Inc. 

The hearing was conducted in Washington, D.C. on October 4, 
1933. Every person who requested an appearance was freely heard 
in accordance with statutory and regulatory requirements. The 
code was presented by duly qualified and authorized representatives 
of the industry representing 95 percent of the volume of business 
and 86 percent of the number of establishments. 

I. Description of Industry 

At the present time the carpet and rug manufacturing industry is 
composed of 35 plants with a potential annual productive capacity 
of $215,000,000. Sales during 1933 are estimated at $60,000,000, 
which is a marked decrease from the sales of $167,000,000 that were 
obtained in 1928. Under these circumstances, it is entirely natural 
that there should be a similar decline in employment from 32,800 in 
the latter year to approximately 16,000 at the present. 

Several considerations set this industry apart from other enter- 
prises in the textile manufacturing field. Although carpets and rugs 
are woven on looms, the principles of construction vary materially 
from any other type of weaving. The looms are extremely complex 
and certain types often cost as high as $35,000 apiece. It is generally 
true that the capital investment per productive employee is extremely 

Both large and small plants exist in the industry, but in this par- 
ticular branch of textiles even a small plant is relatively large when 
compared with textile mills generally. The three largest manufac- 
turers produce roughly 50 percent of the entire volume of the 
industry. 

Design and quality are of extreme importance. The industry 
naturally follows the trend in interior decoration and furniture de- 
sign which, although variable, does not have the sharp swings found 
in the apparel trades. The proponents of the code stressed the neces- 
sity for minimum quality specifications and substantiated their con- 
tentions by citing numerous instances of fabrics, ingrain carpets for 
example, which actually passed out of existence, due to long-continued 
debasement of quality. Constant cheapening of both material and 
construction finally brought this product into such extreme consumer 
distrust that it was no longer merchantable at any price. They 
pointed out that unless reasonable minimum specifications were 
established and conscientiously adhered to several of the currently 
manufactured items would disappear in the same manner. 

Those proposing the code presented a comprehensive set of fair 
trade practices which have the prar^ically unanimous approval of 

(84) 



85 

the entire industry and have been very carefully reviewed by the 
Administration. At the hearing, strong objections were made to 
several of these provisions as they were originally submitted and 
it is believed that most of these objections, when valid, have been 
met. The extreme decline in sales over the last five years was con- 
clusive proof that destructive competitive practices among manu- 
facturers, unless checked, would destroy a capital investment of over 
$200,000,000 and destroy the working opportunity for several thou- 
sand highly skilled workers. 

Intermediate distribution channels, it was claimed, had added 
further to the chaos brought about by the practices within the in- 
dustry itself. The mills through their own direct sales to retailers 
and also through their branch warehouses, control the great majority 
of goods going to the retailer. For this reason, it is vital that inter- 
mediate distributors should be bound in their selling practices by 
the same conditions as the manufacturer in selling direct to retail 
channels. Otherwise no reforms could be effected. 

From the figures of productive capacity and sales previously cited, 
it is obvious that control of production is essential, but the sponsors 
of this code believed it impracticable to achieve this result by restrict- 
ing machine hours. Any kind of machine-hour restriction that would 
allow the flexibility necessary to meet seasonal and style peaks would 
be unnecessarily involved and impossible of administration. Several 
of the leading firms in the industry made a careful study of their 
sales and production records over the last ten years. From this they 
evolved a production-control feature, which provides that at no time 
can a manufacturer maintain an inventory of more than one third 
of his sales for the previous twelve months. When the inventory 
reaches this allowable figure, the manufacturer is granted 120 days to 
readjust his inventory to the allowed figure before curtailing produc- 
tion. In this way, a mill may start building its stock two or three 
months before the anticipated peak demand and then can taper off 
production after the selling season. By this, it is hoped that there 
will be a leveling out of the peaks and valleys of production and 
hence furnish more stable employment throughout the year. 

II. Labor Pkovisions 

Except for learners and physically handicapped employees, the 
industry proposes to pay a minimum wage of 35 cents per hour in 
the North and 30 cents per hour in the South. Hours of labor are 
limited to 40 hours per week and 8 hours in any one day. To 
take care of peak periods, employees may be permitted to work up to 
48 hours per week for a period of six weeks during any six months' 
period, in which case an employee may work up to 10 hours in any 
one day. 

III. Administration 

The provisions for the administration of this code are capable of 
providing the N.R.A. and the Carpet and Rug Manufacturing In- 
dustry with sufficient data to recommend any modifications or amend- 
ments that may be indicated by experience. 



86 
IV. Conclusion 

The Deputj^ Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter. 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and provide 
for the general welfare by promoting the organization of industry 
for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervisions, by elim- 
inating unfair competitive practices, by promoting the fullest pos- 
sible utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor and by otherwise rehabilitating industry. 

(b) Said Industry normally emploj^s not more than 50,000 em- 
ployees; and is not classiiied by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant asso- 
ciation is an industrial association truly representative of the afore- 
said Industry; and that said association imposes no inequitable re- 
strictions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 
not been deprived of the right to be heard prior to approval of said 
Code. 

For these reasons, I recommend that you approve this Code. 



Respectfully, 
January 11, 1934. 



Hugh S. Johnson, 

A dminis trator. 



CODE OF FAIR COMPETITION 

FOR THE 

CARPET AND RUG MANUFACTURING INDUSTRY 

Article I — Preamble 

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 Carpet and Rug Manufacturing Industry 
and upon approval by the President shall be binding upon every 
member thereof. 

Article II — Definitions 

1. The term " industry " as used herein means the manufacture 
and original sale of all woven floor coverings and the spinning of 
carded wool or worsted sales yarn for carpets and rugs. Woven 
floor coverings, the principal content of which is cotton, grass, or 
paper, are specifically excluded. 

2. The term " auto and airplane carpets " as used herein means 
those floor coverings manufactured for original sale to automobile 
manufacturers, to airplane manufacturers, to automobile body manu- 
facturers, and to automobile carpet jobbers for installation in auto- 
mobiles and airplanes. 

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

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

5. The term '' member of the industry " as used herein includes 
anyone engaged in the industry as above defined, either as an em- 
ployer or on his own behalf. 

6. The term " subscriber " as used herein includes that member of 
the industry who voluntarily and formally declares to the authority 
which shall administer this Code that he will be bound by its pro- 
visions and will bear his proportionate share of expense in the 
administration of this Code. 

7. The term " regular merchandise " as used herein means all mer- 
chandise other than mill seconds, drops, private patterns, samples, 
remnants, and mill ends. 

8. The term " wholesale distributor " as used herein means a firm 
or organization maintaining an establishment and performing a 
warehousing and distributing function by carrying a stock of rugs 

(87) 



88 

or carpets, and also maintaining a selling organization to contact 
floor covering outlets and assuming the credit risks involved in such 
distribution. 

9. The term " contract order " as used herein means an order in 
which the fabric is sold for a specific installation and not for a part 
of any dealer's stock. 

10. The term " automobile jobber " as used herein means a firm 
or organization maintaining an establishment and performing a 
warehousing and distributing function by carrjdng a stock of auto- 
mobile carpets and also maintaining a selling organization to con- 
tact automobile manufacturers and automobile body manufacturers 
and assuming the credit risks involved in such distribution, 

11. The term " low basis price " as used herein means the manu- 
facturer's published list price, less maximum published trade dis- 
count only. 

12. The term " drops " as used herein means discontinued patterns. 

13. The term " perfect merchandise " as used herein means mer- 
chandise which is free from defects, as determined by the inspec- 
tion department of the manufacturer. 

14. 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 for Industrial Recovery. 

Article III — Hours 

1. No employee shall be permitted to work in excess of forty (40) 
hours per week, nor more than eight (8) hours per day, provided, 
however, that during a period not to exceed six (6) weeks during any 
six months' period, employees may not work in excess of forty-eight 
(48) hours per week, but no more than ten (10) hours in any twenty- 
four (24) hour period. 

2. It is provided further, that the maximum hours prescribed above 
shall not apply to professional workers employed in their profes- 
sional capacity or to any person on a managerial staff receiving in 
excess of thirty (30) dollars per week, or to watchmen. 

3. It is provided further, that a tolerance of ten (10) percent 
above the maximum hours prescribed above may apply to engineers, 
electricians, firemen, employees engaged on repair-shop or outside 
crews, or in the operation of shipping, except common labor. 

4. In any special case where restrictions of hours of highly skilled 
workers would unavoidably reduce the total employment in a plant, 
or where employees are engaged in emergency maintenance or repair 
work involving breakdowns or the protection of life or property, em- 
ployees may be permitted to work in excess of the maximum hours 
prescribed above. Any emergency time shall be reported monthly 
to the Code Authority. 

5. All hours in excess of the maximum prescribed in the foregoing 
paragraphs of this Article shall be compensated for at the rate of 
one and one third (Ws) of the time or piece work rate. 



89 
Article IV — Wages 

1. No employee in the northern section shall be paid less than at 
the rate of thirty-five (35) cents per hour, except as herein other- 
wise provided. 

2. No employee in the southern section shall be paid less than at 
the rate of thirt}'' (30) cents per hour, except as herein otherwise 
provided. 

3. The southern section as used above shall include the states 
of Virginia, Kentucky, North Carolina, South Carolina, Georgia, 
Florida, Alabama, MississijDpi and Tennessee. 

4. 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. 

6. The dollar differentials in wages between skilled and unskilled 
employees as existing at August 15, 1933, shall not be decreased. 
This provision shall not be binding as to employees earning in excess 
of thirty (30) dollars for forty (40) hours of work. 

6. A person whose earning caj)acity 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. Each employer 
shall file with the Code Authority a list of all such persons employed 
by him, provided, however, that such class of employees shall not 
exceed five (5) percent of the total employees in any plant. 

7. Learners shall not be paid less than eighty (80) percent of the 
minimum wage, and shall not constitute more than ten (10) percent 
of the total number of employees in any plant. Learners are persons 
who have been employed in the industry not longer than six (6) 
weeks, except as listed below : 

Weavers, Pickers, Threaders, Spoolers, Spinners, and 

Dyers two months 

Setters and Jacquard Creelers four months 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the industry. 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 b}' the Authority in such State 
empowered to issue employment or age certificates or permits show- 
ing that the employee is of the required age. 

2. 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 nuitual 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 

32793°— -313-71 31 -2 



90 

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

3. No employer shall reclassify employees or duties of occupations 
performed for the purpose of defeating the provisions of the Act 
or of this Code. 

4. 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 protec- 
tion, than are imposed by this Code. 

5. Ail cmj)!oyers shall post complete copies of this Code in con- 
spicuous places accessible to employees. 

Article VI — Administration 

1. To provide for the administration of this Code within the 
industry, a Code Authority is hereby established to consist of the 
Board of Trustees of the Institute of Carpet Manufacturers of Amer- 
ica, Inc., or its successor organization. This Board shall have power 
to appoint any committees or delegate any of its powers to same 
and utilize any agencies it may deem best for the purpose of admin- 
istering this Code. 

In the public interest and in order to carry out any of the powers 
of the President of the United States under the National Industrial 
Recovery Act, the President may appoint one or more representatives 
who may without cost to the Industry attend meetings of the Code 
Authority, but without vote, or confer with the Code Authority as 
to methods or measures for the administration of the Code. 

2. 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 for participa- 
tion in the formation of this Code or in the adoption of any amend- 
ments thereto, or in its administration, and (2) submit to the Admin- 
istrator any articles of the association's By-Laws, regulations, and 
any amendments Avhen made thereto, which in any way affect the pur- 
poses of the National Industrial Recovery Act in the administration 
of the Code. 

3. In order that the Code Authority shall at all times be truly 
representative of the Industry and 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 comply with the provisions of 
the Act,*^ may require the membership of the Industry to make an 
appropriate modification in the method of selection of the Code 
Authority. 

4. Men'ibers 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 sustaining their 
reasonable share of the expenses of its administration ; such reason- 
able share of the expenses of administration shall be determined by 
the Code Authority on the basis of such factors as may be deemed 
equitable. 



91 

5. 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 anj'^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 hereunder be liable 
to anyone for any action or omission to act under this Code. 

6. The Code Authority shall have the following further powers 
and duties: 

To obtain from members of the Industry for use of the Code 
Authority, and for the information of the President, such reports or 
statistical information listed below, and/or any other reports or in- 
formation as shall later be deemed necessary for such purposes. 
Such data shall be furnished to an individual not in the Industry, 
to be designated by the Code Authority. The source of such data 
shall not be disclosed to any member of the Industry, except where 
any such member specifically consents in respect to his own statistics, 
or where it is specifically provided for in this Code. Each member 
of the Industry shall furnish : 

A. Such information on cost practices as will enable cost experts 
emplo3'ed by the Code Authority to recommend a set of principles of 
cost practices as hereinafter provided. 

B. The following statistics: 

Monthly. — (1) Analysis of total shipments in square yards of — 

Regular Merchandise 

Drops 

Seconds 

Mill Ends 

Slow-Moving Merchandise ; 
(2) Divided by carpets and rugs, also by weaves: 

Orders received in square yards, 

Production of finished goods in square yards 

Inventory of finished goods in square yards 

Shipments of finished goods in square yards 

Sales billed in dollar value of : 

(a) Regular Merchandise 

(b) Drops 

(c) Seconds 

(d) Mill Ends 

Semiannually. — ^A certified report showing the proportion sepa- 
rately of dollar billed sales of drops, seconds, and mill ends, to the 
dollar billed sales of regular merchandise. 

7. The Code Authority shall have power to initiate, consider, arid 
make recommendations for the modification or amendment of this 
Code. 

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 maj'^ deem necessary for the purposes recited in Section 3 (a) 
of the Act. 

9. Where any member of the Industry finds that any other mem- 
ber of the Industry in his operation is presuming an interpretation 
of any provision of the Code which appears contrary to a proper 



92 

interpretation, he may complain to the Code Authority and all mem- 
bers of the Industiy shall refrain from competitive action on such 
interpretation pending an interpretation from the Code Authority. 

10. Tlie Code Authority upon receipt of a written complaint from 
any member of the Industry shall, within two weeks, render an in- 
terpretation to be binding on all members of the Industry subject 
to appeal to the Administrator. 

11. Each member of the Industry shall file with the person not in 
the Industry, designated by the Code Authority, the beginning and 
termination dates of any agreement or contract involving the sale 
of his product, to the terms of which he remained legally bound 
beyond the 24th day of November 1933. 

12. If the Administrator shall determine that any action of the 
Code Authority or any subdivision thereof is unfair or contrary to the 
public interest, the Administrator may require that such action be 
suspended for a period of not to exceed thirty (30) days to aiford 
an opportunity for investigation of the merits of such complaint and 
further consideration by the Code Authority pending final action 
to be taken only upon approval by the Administrator. 

Article VII — Fair Trade Practices 

1. Inasmuch as the members of the Industry control a prepon- 
derant share of the distribution of carpets and rugs to retailers and 
consumers, which distribution is to be governed by the following 
trade practices, it shall be an unfair trade practice for any member of 
the Industry to distribute through intermediate channels in such a 
manner as shall create unfair competition as defined in Articles VII, 
VIII, and IX with members of the Industry distributing direct to 
the retailer and consumer. 

2. Control of Production. — The finished goods inventory of square 
yards of merchandise wherever located, owned by any member of the 
Industry shall not exceed one third (l^) of his sales in square yards 
of merchandise for the immediately preceding twelve (12) months. 
A member of the Industry whose inventory shall at the end of any 
month exceed the aforementioned alloAved figure shall be allowed 
a period of one hundred twenty (120) days in which to restore the 
balance between his inventory and sales before curtailing produc- 
tion. Should any person or company enter the industry as a manu- 
facturer or should any existing member of the industry have with- 
drawn or withdrew his lines from the market for a period of not 
less than three (3) months the above provisions shall be suspended 
in their case for the period of twelve (12) months; during this 
twelve (12) months such person or company may carry an inventory 
of finished merchandise not to exceed that Avhich is allowed to mem- 
bers of the Industry of commensurate capacity under the provisions 
of this Code. 

3. Selling Beloto Cost. — No member of the Industry shall sell any 
regular merchandise at a net price or net prices below his cost, ex- 
cejDting that any such member may sell under the provisions of this 
Code at a price below his cost (a) to meet current prices on regular 
merchandise of essentially equivalent grade and quality sold by any 
competitor complying with the provisions of this Code, or (b) where 



93 

the Code Authority grants him permission to sell below his cost 
because exceptional conditions have been presented. The Code Au- 
thority shall, throujih expert cost accountants, determine the prin- 
ciples of a cost practice, both as to the character of the items to be 
included and the method of their application to the finished products, 
and each member of the Industry shall set up and maintain records 
which will conform to the principles recommended and be governed 
thereby in all computations and reports required for the adminis- 
tration of this Code. 

4. Open Price Data. — (a) Each member of the Industry shall file 
with the Code Authority and publish to the trade certified lists of 
his prices and discounts and also any revision of prices, which shall 
be immediately forwarded to all members of the Industry. If any 
member of the Industry desires to revise any of his prices he shall 
file with the Code Authority any such revision which shall become 
effective not less than seven (7) days thereafter, exclusive of the 
date of the filing thereof. Any such revision shall be forwarded 
immediately to all members of the Industry, who, thereupon, may 
file any revision of prices which may become effective upon the 
date when the revised price first filed shall go into effect. 

(b) No member of the Industry shall sell any regular merchandise 
for less than his published list prices, which shall be subject to no 
greater discount than his maximum trade discount as filed with 
the Code Authority. 

5. Rebates. — No member of the Industry shall rebate to any pur- 
chaser any part of the purchase price either in the form of trade 
discounts, advertising allowances, or any other allowances, excepting 
allowances filed with the Code Authority. 

6. Donations. — No member of the Industry shall make any dona- 
tion or contribution in the form of cash, credit, advertising, or other 
gratuitous consideration to any purchaser. 

7. Contracts. — No member of the Industry shall accept a contract 
order at less than his published list price, less his published trade 
discount. 

8. Quality Specifications. — Each member of the Industry accepts 
the minimum specifications for Axminster, Wilton, and Velvet fab- 
rics, which have been adopted by the Institute of Carpet Manu- 
facturers of America, Inc., which shall be filed with the Bureau of 
Standards at Washington, and shall not manufacture any Axminster, 
Wilton, or Velvet merchandise inferior to these specifications except 
to complete the weaving of any fabric in the looms. It is under- 
stood that automobile carpets and rugs and also carpets and rugs 
whereof the surface yarns are composed entirely of jute are excepted 
from the quality specifications above referred to. Any member of 
the Industry may require of the Code Authority an interpretation 
regarding such specifications as to his product. 

9. Copying of Patterns. — No member of the Industry shall pro- 
duce in an inferior grade a copy of a running line pattern by any 
other manufacturer. 

10. Invoicing and Marking. — All merchandise shipped to custom- 
ers shall be correctly described and priced on the invoices Avhich are 
issued covering such merchandise. Rugs other than " perfect " shall 
be plainly and permanently marked "mill seconds." 



94 

11. Return Merchandise. — All sales of merchandise shall be final, 
and no member of the Industry shall accept the return of any mer- 
chandise, either for exchange or credit, except where the quality of 
the merchandise is in question or where an error has been made in 
size or pattern, or for credit reasons, or where such return is author- 
ized by the Code Authority or its agent. 

12. Credit Terrns. — The following maximum credit terms will ap- 
ply in all sales of merchandise with the understanding that any 
member of the Industry be permitted to exercise his option as to 
which terms best suit the needs of his company : 

^a) 4% 70 days from date of invoice, or 

(b) 4% 60 days from end of month. 
Abatement of discount beyond maturity date to be at the rate of 
one (1) percent a month, left to the option of each member of the 
Industry, but in no case should abatement of discount be permitted 
beyond thirty (30) days after maturity date of invoice. Any devia- 
tion from the above terms shall be only upon approval of the Code 
Authority. 

13. Compensation for Losses. — No member of the Industry shall 
guarantee any purchaser against, or compensate him for, any losses 
arising through the operation of his business. 

14. Protection. — No member of the Industry shall extend price 
protection or stock protection to purchasers other than wholesale 
distributors or firms performing a similar distributing function in 
the event of any decline in prices. 

15. Consignment. — No member of the Industry shall consign the 
products of his manufacture to retail dealers or consumers. 

16. Consumers.— No member of the Industry shall sell direct to the 
ultimate consumer or his agent, with the exception of sales to city, 
state, and federal governments, railroads, steamship companies, and 
common carriers or employees. Sales made through contract depart- 
ments of wholesale distributors shall not be considered as being made 
to the ultimate consumer or his agent. 

17. Drops. — The dollar billed sales of drops by any member of 
the Industry shall not exceed ten (10) percent of his dollar billed 
sales of his regular merchandise at his regular published prices, for 
any calendar year, beginning January 1, 1934. In the case of any 
excess above the foregoing, then a subscriber shall pay to the Code 
Authority, as and for liquidated damages, the sum of twenty (20) 
percent of the amount of such excess, such sum to be devoted to 
meeting the expenses of the administration of this Code. 

18. Slow-Moving Merchandise. — Slow-moving merchandise which 
remains in stock after having been oflfered for sale as mill seconds, 
drops, and mill ends for a period of not less than three (3) months, 
may be sold at discounts necessary to move same, but such slow- 
moving merchandise shall be sold only during the months of June 
and December and without further price or stock protection. 

19. AUotvances. — (a) Retail stores are to be credited or paid the 
volume allowances based only on merchandise invoiced to an in- 
dividual company. No manufacturer shall pay or allow credit for 
any cost of re-shipping merchandise shipped and invoiced to a 
retailer.* 

♦ Provisions of this subsection stayed ; see paragraph 2 of Executi^* Order approving 
this Code. 



95 

(b) All members of the Industry shall lod^e with the person not 
in the Industry, desii>nated by the Code Authority, at the beginning 
of each season, schedules of all their allowances to wholesale dis- 
tributors and to otlier purchasers. Allowances for dollar volume 
shall be calculated and paid or credited to retailers for no less a 
period than six (6) months, and in accordance with the schedule 
filed as provided herein. Notification of any proposed revision in a 
schedule of allowances shall be given the person not in the Industry, 
designated by the Code Authority, not less than one (1) week prior 
to the date upon which any such revision shall become effective. 

Article VIII — Auto and Airplane Carpets 

The following additional provisions shall apply to the sale of auto 
and airplane carpets : 

1. O-jf Goods. — Merchandise consisting of seconds, returned goods, 
and overweavings may be offered to the automobile trade at any 
time, but if offered to the regular floor-covering trade all provisions 
of the Code shall apply. 

2. Consignment. — No member of the Industry shall consign auto- 
mobile carpets. 

3. Credit Tenns.—Ei'Ach member of the Industry shall abide by 
the following terms in the sales of his merchandise : 

(a) No cash discount or volume allowances to be allowed to pur- 
chasers of auto and airplane carpets; sales to jobbers on four (4) 
percent basis. 

(b) Terms of sale shall specify for payment for merchandise not 
later than the 25th of the month following the date of the invoice. 

(c) Shipments shall be f.o.b. mill. 

4. Filing of Orders. — Each member of the Industry shall file with 
the person not in the Industry, designated by the Code Authority, 
certified copies of all orders received in excess of five hundred (500) 
dollars ; such lists to be filed on the 12th of each month, showing the 
orders taken during the preceding month. Orders must show quan- 
tity, price, terms, life of such agreement and quality and construction 
specifications, consisting of all-over weight per square yard and pile 
weight per square yard. After a lapse of three (3) months speci- 
fications and price particulars of any order will be considered avail- 
able for the information of any member of the Industry who may 
so request. Name of member of the Industry and purchaser shall 
not be disclosed unless in the opinion of the person not in the Indus- 
try, designated by the Code Authority, it is necessary in the event 
of a claim of unfair practice. 

5. Protection. — Price protection or stock protection shall not be 
extended to automobile manufacturers or to distributors or retail 
dealers in automobile carpets. 

6. Shipping Specifications. — All orders shall be specified quan- 
tities and stipulate the period during which the entire order must be 
released for shipment or billed. No goods shall be manufactured 
except against written orders. 



96 
Article IX — Wool Sales Yarn 

The following additional provisions shall apply to those members 
of the Industry spinning carded and worsted wool sales yarn for 
carpets and rugs, with the understanding that Section 6 (b) of 
Article VI and Article VII of this Code, shall not apply to said 
members of the Industry : 

1. Control of Production. — The finished yarns inventory of pounds 
of merchandise, wherever located, owned by any member of the 
Industry defined in this Article shall not exceed one sixth (14) of 
his sales in pounds of merchandise for the immediately preceding 
twelve (12) months. Since, however, seasonal variations require 
fluctuating inventories of finished yarns, a said member of the In- 
dustry whose inventory shall at the end of any month exceed the 
aforementioned allowed figure shall be allowed a period of one 
hundred twenty (120) days in which to restore the balance between 
his inventory and sales, before curtailing production. Should any 
person or company enter the industry as a manufacturer or should 
any existing member of the industry have withdrawn or withdrew 
his lines from the market for a period of not less than three (3) 
months the above provisions shall be suspended in their case for the 
period of twelve (12) months; during this twelve (12) months such 
person or company may carry an inventory of finished merchandise 
not to exceed that which is allowed to members of the Industry of 
commensurate capacity under the provisions of this Code. 

In order to inform the President of the United States as to the 
regulation of production conformable with sales, a return shall be 
made each month to the person not in the Industry, designated by the 
Code Authority, by each said member of the Industry showing the 
sales in pounds for the month and the inventory of finished yarns at 
the end of the month. 

2. Standard Spinning Contract. — The said members of the In- 
dustry, through the Code Authority, shall set up a standard contract 
for the sale of carpet yarns, which shall include a description of the 
yarn, a definite date, price, quantity, and a specific time for comple- 
tion, and it shall be considered unfair practice to allow customers to 
specify deliveries which shall carry any contract past its completion 
date. All sales shall be final and any of the said members of the 
Industry shall not allow rebates of any sort, whether for stock pro- 
tection, financial protection, or anything else that would change the 
terms of the contract. 

3. Arhitrations. — Upon any question arising under this Code which 
would involve dispute between any said member of the Industry and 
a weaver to whom he has sold yarn, the complaint of either may be 
brought to the attention of the Code Authority for its recommenda- 
tion. If it is determined by said Authority that the contention of any 
said member of the Industry or of the weaver is without justification 
then the person not in the Industry, designated by the Code Author- 
ity, will be requested to seek an arbitration between the said member 
of the Industry and weaver involved. 

4. Options. — Options that are given in yarn purchases shall not 
exceed ten (10) days. 



97 

5. Seconds, Damaged, or Of -Colored Merchandise. — All merchan- 
dise sold at prices beloAv the contracted price of such merchandise 
because of yardage, quality, or color, must be reported to the Code 
Authority monthl}-. Sales of such merchandise shall not exceed more 
than 2^2% of the yearly sales in pounds of each said member of 
the Industry. This includes such items as inferior or damaged yarn, 
discontinued or slow-moving colors or any types of merchandise that 
might properly be classified under these headings. 

6. Donations. — It shall be considered as unfair competition for any 
said member of the Industry to nuike any donation or contribution in 
the form of cash, credit, advertising, or other gratuitous considera- 
tion to any customer in connection with any sale. 

7. Terms. — Each said member of the Industr}' shall abide by the 
following credit terms in the sales of his yarn : 

3%% 10 flays 

3% 30 (lays 

Net- 60 days 

f.o.b. shipping point. 

From date of invoice which shall be date of delivery. 
Interest shall be charged at the rate of one half of one (I/2 of 1) 
percent per month in excess of 60 days. Any deviation from the 
above terms shall be only upon approval of 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 Re- 
covery Act, from time to time to cancel or modify any order, ap- 
proval, license, rule, or regulation issued under Title I of said Act. 

2. This Code, upon recommendation to the Administrator by the 
Code Authority, based on conditions in the Industry which tend 
to effectuate the operation of this Code or the jDurposes of this Act, 
may be modified or amplified, except as to provisions required by 
the Act; such modification or amplification to have the same force 
or effect as any other provision of this Code after approval by the 
Administrator under such notice or hearing as the Administrator 
may specify. 

Article XI — Monopolies 

No 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 XII — Effective Date 

This Code shall become effective the second day after date. 

Approved Code No. 202. 
Registry No. 214-1-04. 

o 



Approved Code No. 203 

CODE OF FAIR COMPETITION 

FOR THE 

RAW PEANUT MILLING INDUSTRY 

As Approved on January 12, 1934 

BY 

PRESIDENT ROOSEVELT 



Executive Order 

WHEREAS, the Secretary of Agriculture and the Administrator 
of the National Industrial Recovery Act having rendered their 
separate reports and recommendations and findings on the provisions 
of said Code, coming within their respective jurisdictions, as set 
forth in the Executive Order No. 6182 of June 2G, 1933, as supple- 
mented bv Executive Order No. G207 of July 21, 1933, and Executive 
Order No. G345 of October 20, 1933 : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
of the National Industrial Recovery Act, approved June 16, 1933, 
and otherwise, do hereby find that: 

1. An application has 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 Raw Peanut Milling Industry; and, 

2. Due notice and opportunity for hearings to interested parties 
has been given pursuant to the provisions of the Act and regulations 
thereunder; and, 

3. Hearings have been held upon said Code, pursuant to such notice 
and pursuant to the pertinent provisions of the Act and regidations 
thereunder; and, 

4. Said Code of Fair Competition constitutes a Code of Fair Com- 
petition, as contemplated by the Act and complies in all respects 
with the pertinent provisions of the Act, including clauses (1) and 
(2) of subsection (a) of Section 3 of Title I of the Act; and, 

5. It appears, after due consideration, that said Code of Fair Com- 
petition will tend to effectuate the policy of Congress as declared in 
Section 1 of Title I of the Act. 



33583 ° 313-85 34 



(99) 



lUO 

NOW, THEEEFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, '1933, and 
otherwise, do hereby approve said Code of Fair Competition for 
the Raw Peanut Millino; Industry. 



FRANKLIN D. ROOSEVELT. 



Approval recommended: 
Hugh S. Johnson, 

A dministrator. 
The White House, 

January 12, 1934-. 



DePARTMEXT of AoRICTJLTUItE, 

Washington, D.C., January 9, 1933. 
The President, 

The White House. 
Dear Mr. President: I have the honor to submit the following: 

1. There is transmitted herewith a Code of Fair Competition for 
the Kaw Peanut Milling Industry, which I recommend for your 
approval and which the National Recovery Administrator recom- 
mends for your approval with reference to the labor provision 
thereof. There accompanies the Code the report of the Administra- 
tor of the Agricultural Adjustment Act, the report of the Adminis- 
trator of Title I of the National Industrial Recovery Act, and a true, 
correct, and complete stenographic report of all the evidence intro- 
duced at a public hearing on said Code, held pursuant to Section 
3 (a) Title I of the National Industrial Recovery Act. 

2. By virtue of Executive Order No. 6182, of June 26, 1933, as 
supplemented by Executive Order 6207, of July 21, 1933, and Execu- 
tive Order No. 6345, of October 20, 1933, which, pursuant to Title 
I of the National Industrial Recovery Act of June 16, 1933 (Public, 
No. 67, 73d Congress) delegated to me, as Secretary of Agriculture, 
certain of the powers vested in the President of the United States by 
the aforesaid Act, and after considering the aforesaid Code of Fair 
Competition and a true, correct, and complete stenographic report 
of all evidence introduced at such public hearing, and being fully 
advised in the premises, I make the following findings : 

(1) That an application has been duly made b}^ the regional asso- 
ciations representing the Raw Peanut Millers, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for the approval of the 
President, of the Code of Fair Competition for the Raw Peanut 
Milling Industry. The regional associations making such applica- 
tion and tlie advisor}^ body provided for in such Code, are truly 
representative of the industiy, and no inequitable restrictions on 
admission to membership are imposed by the regional associations. 

(2) That the Raw Peanut Milling Industry, covered by such Code, 
is included within the trades, industries or subdivisions thereof 
enumerated in Executive Order No. 6182 of June 26, 1933, as sup- 
plemented by Executive Order No. 6207 of Julv 21, 1933, and 
Executive Order No. 6345 of October 20, 1933. 

(3) That the provisions of the Code establishing standards of fair 
competition (a) are regulations of transactions in or affecting the 
current of interstate and foreign commerce and (b) are reasonable. 

(4) That the Code is not designed to promote monopolies or to 
eliminate or oppress small enterprises and will not operate to discrim- 
inate against them and will not permit monopolies or monopolistic 
practices. 

(5) That the Code will not prevent an individual from pursuing 
the vocation of manual labor and selling or trading the products 

(101) 



102 

thereof nor prevent anyone from marketing or trading the produce 
of his farm. 

(6) That due notice and opportunity for hearing, in connection 
with the aforesaid Code, has been afforded interested parties, in 
accordance -with Title I of the National Industrial Recovery Act and 
applicable regulations issued thereunder. 

(7) That said Code will tend to effectuate the declared policy of 
Title I of the National Industrial Recovery Act as set forth in 
Section 1 of said Act in that the terms and provisions of such Code 
tend to: (a) Remove obstructions to the free flow of interstate and 
foreign commerce which tend to diminish the amount thereof; 
(b) to provide for the general welfare by promoting the organiza- 
tion of industry for the purpose of cooperative action among trade 
groups; (c) to eliminate unfair competitive practices; (d) to pro- 
mote the fullest possible utilization of the present productive 
capacity of industries; (e) to avoid undue restriction of produc- 
tion (except as may be temporarily required) ; (f) to increase the 
consumption of industrial and agricultural products by increasing 
purchasing power; and (g) otherwise to rehabilitate industry and to 
conserve natural resources. 

(8) That said Code, when approved by the President, will con- 
stitute a Code of Fair Competition for the Raw Peanut Milling 
Industry within the meaning of Section 3 (a) of Title I of the 
National Industrial Recovery Act. 

Respectfully, 

H. A. Wallace, 

Secretary. 



Department of Agriculture, 
^VasJiiiHjton^ D.C., January 9, 1934-. 
Hon. Hugh S. Johxson, 

Administrator^ National Recovery Administration^ 
Was/iin(/ton, B.C. 

Dear General Johmson: I am transinittino- herewith the Code of 
Fair Competition for the Raw Peanut Milling Industry. The labor 
provisions of this code have already received j^our approval. 

This is one of the codes over which you will have jurisdiction 
under the terms of the Executive Order which has been signed by 
the President. 

The Agricultural Adjustment Administration has prepared a 
marketing agreement for the peanut millers who are affected by this 
code. This agreement has received my tentative approval and has 
been signed by a substantial majority of the peanut millers in the 
various peanut producing states. The peanut millers have, however, 
taken the position that they do not desire the agreement to become 
effective until their code is made effective. For this reason I am 
anxious that there be no unnecessarj^ delay in making effective this 
code which, as you will note from the record, is acceptable to a great 
majority of the industry. I hope, therefore, that it will be possible 
for you to obtain final approval for this code and leave the matter 
of any adjustment to be made in the code, in line with the policy set 
forth by the Executive Order, to be handled at a later date. 

In view of the fact that the labor provisions Avere originally ap- 
proved by 3-ou on December 20, I trust that there will be no difficulty 
in following this procedure. 



Sincerely yours, 



H. A. Wallace, 

Secretary. 
(103) 



December 20, 1933. 
Hon. Henry A. Wallace, 

Secretary of Agriculture^ Washington^ B.C. 
Dear Mr, Secretary: Attached herewith is my recommendation 
for the approval of Labor Provisions of the Code of Fair Competi- 
tion for the Raw Peanut Milling Industry, together with supporting 
documents. 

' Will you kindly transmit this file with the Code of Fair Competi- 
tion for this Industry, which I understand you are about to trans- 
mit to the JPresident with your recommendation for approval, pur- 
Buant to Executive Order of June 26, 1933. 

Your kind offices in this matter will be gi-eatly appreciated. 
Yours very truly, 

Hugh S. Johnson, 

Adrninistrato-r. 

(104) 



CODE OF FAIR COMPETITION 

FOR THE 

RAW PEANUT MILLING INDUSTRY 

Article I — Purposes 

Whereas, it is the declared policy of Congress as set forth in 
section 1 of title I of the National Industrial Recovery Act : 

" to remove obstructions to the free flow of interstate and foreign 
commerce Avhich tend to diminish the amount thereof ; and to provide 
for the general welfare by promoting organization of industry for 
the purpose of cooperative action among trade groups, to induce 
and maintain united action of labor and management under adequate 
governmental sanctions and supervision, to eliminate unfair com- 
])etitive practices, to promote the fullest possible utilization of the 
present productive capacity of industries, to avoid undue restriction 
of 2)roduction (except as may be temporarily recjuirecl), to increase 
the consumption of industrial and agricultural products by increas- 
ing purchasing power, to reduce and relieve unemplojnnent, to im- 
prove standards of labor, and otherwise to rehabilitate industry and 
to conserve natural resources; " 

Now, therefore, to effectuate such policy, the following provisions 
are established as a Code of Fair Competition for the Raw Peanut 
Milling Industry, and upon approval by the President, shall be 
the standards of fair competition for such industry and shall be 
binding upon every member thereof. 

Article II — Definitions 

Section I. As used in this code — 

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

(b) The term " Secretary " means the Secretary of Agriculture of 
the United States. 

(c) The term " National Recovery Administrator " means the duly 
designated representative of tlie President to administer such func- 
tions and powers under title I of the National Industrial Recovery 
Act as are not delegated to the Secretary by Executive Order. 

(d) The term "Act" means title I of the National Industrial 
Recovery Act, approved June 10, 1933. 

(e) The term " Person " means individual, ])artnership, corpora- 
tion, association, and any other business unit. 

(f) The term "Raw Peanut Milling Industry" (hereinafter re- 
ferred to as "the industry") includes the cleaning and/or shelling 
of raw peanuts. 

333S.3° 313-S5 ?.4 2 (105) 



106 

(g) Tlie term " Member of the Industry " means any person en- 
gaged in the industry, either as an employer or on his own behalf, 
including any person who contracts for the cleaning and/or shelling 
of raw peanuts with a member of the industry as to all transactions 
in the i)eanuts so cleaned and/or shelled. 

(h) The term '' Employee " means unj person engaged in the in- 
dustry in any capacity receiving compensation for his services, irre- 
spective of the nature or method of payment of such compensation. 

(i) The term " Employer " means any person by whom any such 
employee is compensated or employed. 

(j) The term "Books and Records" means any books, records, 
accounts, contracts, documents, memoranda, papers, correspondence, 
or other written data pertaining to the business of the person in 
question. 

(k) The term '• Subsidiary " means any person, of or over whom, 
a member of the industry has, either directly or indirectly, actual 
or legal control, whether by stock ownership or in any other manner. 

(1) The term "Affiliate " means any person who has, either directly 
or indirectly, actual or legal control of or over a member of the 
industry, whether by stock ovvuership or in any other manner. 

(m) The term " National Administrative Committee "' means the 
National Administrative Committee created pursuant to Article IX 
hereof. 

(n) The term "Regional Committees" means the Regional Com- 
mittees created pursuant to Article IX hereof. 

(o) The term " The Virginia Area " means the territory included 
in the States of Virginia, North Carolina, Tennessee, and Penn- 
sylvania. 

(p) The term "The Southeastern Area" means the territory in- 
cluded in the States of Georgia, Alabama, South Carolina, Florida, 
and Mississippi. 

(q) The term " The Southwestern Area " means the territory 
included in the States lying west of the Mississippi River. 

(r) The term "Outside Salesmen" means salesmen who exclu- 
sively perform the functions of selling but do not deliver. 

(s) The term " Outside Peanut Buyer " means a buyer who travels 
through the producing areas for the purpose of buying and/or 
receiving peanuts to be shij^ped to a member of the industry. 

(t) The term " Watchman " means a person wdiose sole function 
is watching. 

Article III — Hours 

Section 1. No employer shall employ any clerical, accounting, or 
other office employees in excess of 44 hours in any one week, or 8 
hours in any one day, or any employee, other than those covered in 
the preceding clause, in excess of 40 hours in any one week, or 8 hours 
in any one day, with the following exceptions: 

(a) Executive, supervisory, technical, and administrative em- 
ployees, provided that they receive regularly $35 per w^eek or more, 
outside salesmen and outside peanut buyers. 

(b) Watchmen, provided, however, that they shall not work more 
than 56 hours per week. 



107 

(c) Cliaiiffeiirs, clelivenMnen, receivino- and shipping crews, pro- 
vided, however, that they shall not work more than 48 hours per 
week. 

(d) Firemen, engineers, electricians, and shop crews, provided 
that they shall not work more than 48 hours per week. 

Sec. 2. The maximum hours fixed in the section innnediately fore- 
going shall not apply to employees engaged in emergency repair 
work; provided, however, that any employee, except an employee 
covered by paragraph (a) of said section, engaging in emergency 
repair v\-ork beyond the maximum hours established for him in said 
section shall be compensated by at least time and one third his 
normal rate for hours worked in excess of his maximum, and reports 
shall be made monthly to the National Administrative Committee 
stating the number of hours worked in excess of maximum on 
emergenc}' repair work. 

Sec. 3. Any employee, except a watchman, working on a Sunday 
or legal holiday shall be compensated by at least time and one third 
his normal rate for the hours so worked. 

Article IV — Wages 

Section 1. On and after the effective date the minimum wage 
that shall be paid by emploj^ers in the industry shall be in accord 
with the following schedule : 

Class A. — Those engaged in the light work of picking peanuts 
at picking tables, bag patching, messengers, and common labor not 
otherwise classified, 15^ per hour. 

Class B. — Those engaged in shipping and receiving, feeders of 
peanuts into mills, sweepers, helpers, sack sewers, chute attendants, 
watchmen, and oilers, 22^ per hour. 

Class C. — Firemen, chauffeurs, deliverymen, and head floormen, 
27^ per hour. 

Class D. — Picking-room foremen, shop crews, and engineers, 35^ 
per hour. 

Cla.ss E. — Clerical, accounting or other office employees, $14 per 
week. 

Sec. 2. Female emploj^ees performing substantially the same work 
as male employees shall receive the same rate of pay as male 
employees. 

SecI 3. It is agreed that this Code guarantees a minimum rate of 
pay regardless of whether the employee is compensated on a basis 
of time-rate or piecework performance. 

Sec. 4. The hourly wage rate for occupations other than coinmon 
labor shall be increased by a sum whicii will at least maintain the 
weekly earnings existing on an average during the month of July, 
1933, and in no case shall wages be reduced. 

Sec. 5. The minimum rates of the wages and the maximum hours 
of work set forth above shall be effective for a period of four 
months from the effective date of this Code and thereafter until 
such time as said rates and hours may be revised in accordance 
therewith. After four months from the effective date of this Code 
said rates and hours may be reviewed by the .Vdministrator at publio 
hearing, following such notice as he shall specify. 



108 

Sec. G. a person Y\'hose earning capacity is limited becanse of 
age or i)hysical or mental handicap may be employed on liglit 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. At least one such person may be employed by each 
member of the industry ; but, vvdiere more than one are so employed, 
the aggregate of them shall not exceed 5% of all persons in the 
employ of such member of the industry. Each employer shall keep 
on file with the National Administrative Committee a list of all 
persons in his employ whose earning capacity is so limited. 

Sec. T. After the effective date of this Code no employer shall 
withhold any wages. 

Article V — General Labor Provisioxs 

Section 1. On and after the effective date of this Code no person 
under 16 years of age shall work or be permitted to worlf in the 
industry. 

Sec. 2. No person under 18 years of age shall work or be permitted 
to work at operations or occupations deemed to be detrimental to 
health or hazardous. The National Administrative Committee shall 
submit before February 1, 1934, to the Administrator for approval 
a list of such occupations. 

Sec. 3. Members of the industry shall comply with all laws and 
ordinances for their respective localities imposing more stringent 
recpiirements, regulating the minimum age of employment, wages, 
hours of work, or health, fire, or general Avorking condition.s, than 
are imposed under this Code. 

Sec. 4. Pursuant to Section 7 (a) of the National Industrial Re- 
covery Act, the following conditions are hereby embodied in and 
prescribed as a part of this Code. 

(a) That employees shall have the right to organize and })argain 
collectively through representatives of their own choosing and shall 
be free from interference, restraint, or coercion of employers of 
labor, or their agents, in 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 re- 
quired as a condition of employment to join any company union or 
to refrain from joining, organizing, or assisting a labor organization 
of his own choosing. 

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

Sec. 5. No employer shall reclassify emplojTcs or duties of occu- 
pations performed or engage in any other subterfuge for the purpose 
of defeating tlie provisions of the Act or of this Code, 

Sec. 6. (a) Each employer shall post in' a conspicuous jdace of 
easy and continuous access to employees the articles dealing with 
hours, wages, and general labor provisions of this Code. 

(b) Such notice shall be printed in English in type of at least 10 
point ; and at least three notices shall be posted in any shops employ- 



109 

in^^ more than 10 employees, and one in any smaller shop. Notices 
shall be posted in such other languages as may be spoken by 
employees. 

(c) All changes in the provisions of llujse aforesaid articles shall 
be posted within one Aveek after such changes have been incorporated 
in the Code. 

Article VI — Unfair MExiions of Competition 

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

Section 1. False advertising. — To publish or disseminate in any 
manner any false advertisement. An advertisement shall be deemed 
to be false if it is untrue in an}- particular, or if directly or by 
ambiguity or inference it creates a misleading impression. 

Sec. 2. Misbranding. — To sell or otherwise introduce into com- 
merce any peanuts which are misbranded. Peanuts shall be deemed 
to be misbranded : 

(a) Standards of fill. — If the container is so made, formed, or 
filled as to mislead the purchaser, or (2) the contents fall below the 
standard of fill prescribed regulations of the Secretary hereunder ; 

(b) Standards of identity. — If they purport to be or are repre- 
sented as peanuts for which a definition of identity has been pre- 
scribed by regulations of the Secretary hereunder and fail to con- 
form to the definition ; 

(c) Standards of quality. — If they purport to be or are repre- 
sented as peanuts for which standards of quality have been pre- 
scribed by regulations of the Secretary hereunder, and (1) fail to 
state on the label, if so required by the regulations, the standard of 
quality in such terms as the regulations specify, or (2) fall below 
the standard stated on the label. 

Sec. 3. Opening Day. — To accept delivery of farmers' stock pea- 
nuts of the new crop prior to the opening day for such acceptance 
which shall be determined and announced annually by the Regional 
Committ-ees for their respective areas. 

Sec. 4. Sale of Seed. — To sell or offer for sale nubs, pegs, or oil 
stock for planting purposes. 

Sec. 5. Subsidizing. — To obtain a monopoly of the operation of 
trucks or picking machines with the purpose of preventing the use 
of the same by a competitor, or to subsidize the owners or operators 
of trucks or picking machines or to furnish free bags to producers, 
pickers, or truckers, or to store farmers' stock peanuts free of 
charge. 

Sec. 6. Guaranties and Concessions. — To guarantee prices against 
declines in any manner whatsoever, and to pay or allow to buyers 
of cleaned and/or shelled peanuts or to sellers of Farmers' stock 
peanuts allowances, bonuses, rebates, subsidies, or concessions of any 
kind. 

Sec. 7. Call Peanuts. — To purchase farmers' stock peanuts at a 
price to be determined at a date subsequent to the date of the contract 
of sale. 

Sec. 8. Contract<. — To post-date or pre-date contracts to sell 
cleaned or shelled peanuts, or to contract in any manner whatever 



110 

without definite commitment by both parties as to price and time 
within ■which shipment shall be made. 

Akticles VII — Reports 

Section 1. The members of the industry shall severally, from 
time to time, upon the request of the Secretary (or the National 
Recovery Administi-ator in case of information relating to hours 
of labor, rates of pay, or other conditions of employment) furnish 
such information, on and in accordance with forms of reports to be 
supplied, as may be deemed necessary for the purposes of (1) assist- 
ing in the furtherance of the powers and duties of the Secretary or 
the National Recovery Administrator with respect to this Code 
and/or (2) enabling the Secretary or the National Recovery Admin- 
istrator to ascertain and determine the extent to Vvdiich the declared 
policy of the act and the purposes of this Code will be effectuated, 
such reports to be verified under oath. 

Sec. 2. The members of the industry shall severally permit, for 
the same purposes and/or to enable the Secretary or the National 
Recovery Administrator to verify the information furnished on said 
forms of reports, all their books and records and the books and 
records of their affiliates and subsidiaries to be examined by the 
Secretary and/or the National Recovery Administrator during the 
usual hours of business. 

Sec. 3. The members of the industry shall severally keep books 
and records which will clearly reflect all financial transactions of 
their respective businesses and the financial condition thereof, and 
shall see to it tliat their respective subsidiaries and affiliates keep 
such records. 

Sec. 4. The members of the industry shall severally, from time to 
time, upon the request of the Secretary report to the Secretary the 
quantity of farmers' stock peanuts on hand whether owned or stored 
for others, and the C|uantity of raw shelled ancl/or cleaned peanuts on 
hand owned or stored for others. 

Sec. 5. The members of the Industry shall promptly report to 
their respective Regional Committees upon request, on such forms as 
paid committees may fi-om time to time prescribe, the prices paid or 
bid for farmers' stock peanuts by variety and grade, and the prices 
asked, received, and onered for raw shelled and/or cleaned peanuts, 
by variety and grade. 

Sec. G. The Regional Committee shall furnish to the Secretary 
(and to the National Recovery Administrator in matters relating to 
hours of labor, rates of pay, and other conditions of employment) 
upon request any and all information furnished by the members of 
the industry pursuant to this Article. 

Sec. 7. All information furnished to the Secretary pursuant to this 
Article shall remain confidential in accordance with the applicable 
General Regulations, Agricultural Adjustment Administration. 

Sec. 8. The prices of farmers' stock peanuts paid or bid by each 
member of the industry, segregated by variety and grade, shall be 
posted conspicuously by each member of the industry so tluit farmers 
may be kept advised at all times as to current prices. 



Ill 

Article VIII — Grades 

Section 1. Farm<?rs^ Stock Peanuts. — (a) Farmers' stock Spanish 
and Runner peanuts shall be graded on the basis of the established 
U.S. Standard Grades and farmers' stock Virginia Tj'pe peanuts 
shall be graded on the shelling basis of the established U.S. No. 3 
Grade, Class A, and no member of the industry shall purchase farm- 
ers' stock peanuts except on the basis of such grades. 

(b) Each member of the industry shall make a deduction from 
or an increase in the purchase price for farmers' stock ])eanuts for 
variations in the sound meat content established by the aforesaid 
grades as follo"vvs: In Spanish peanuts of 1/70 of the ton price for 
each 1% above or beknv, as the case may be, and in Runner and 
Virginia Type peanuts of 1/65 of the ton price for each 1% above 
or below, as the case may be. In addition, each member of the in- 
dustry shall pay a premium agreed upon with the producer for 
Virginia Type peanuts of a quality superior to the general quality 
of the crop as evidenced by the proportion of peanuts suitable for 
" hand picks " and/or for the proportion of extra large kernels. 

(c) In the case of Spanish, Runner, and Virginia Type peanuts, 
each member of the industry shall make a deduction from the pur- 
chase price for farmers' stock peanuts for damage in excess of 2% 
of $2.00 per ton for each 1% or fractional part thereof of such excess 
damage. 

Sec. 2. Processed Peanuts — (a) Virginia Type Peanuts. — The sev-? 
eral grades of cleaned or shelled Virginia Type peanuts established 
by. the U.S. Department of Agriculture on April 8, 1932, or as here- 
after changed, shall be the standard grades of cleaned or shelled 
Virginia Type peanuts. Xo member of the industry shall sell or oti'er 
for sale any other grades of Virginia Type peanuts for edible pur- 
poses other than for crushing into oil. 

(b) Spanish and Runner Peanuts. — The several grades of shelled 
Spanish and Runner peanuts established by the United States De- 
partment of Agriculture on July 26, 1925, or as hereafter changed, 
together with Rule 3, Section 4,"and Rule 4, Section 4, of the Rules 
of the Southeastern Peanut Association, concerning good delivery, 
ejffective September 1, 1925, shall be the grades of and basis for sales 
of shelled Spanish and Runner peanuts. No member of the in- 
dustry shall sell or oifer for sale for edible purposes other than 
crushing into oil shelled Spanish or Runner peanuts of any other 
grades or on any other basis. 

Sec. 3. Peanut Products. — To insure the purity and to improve 
the quality of edible peanut products, " pick-outs " from shelled 
peanuts shall be sold only for crushing into oil and for purposes 
other than for human consumption. 

Article IX — Supera^sory Bodies 

Section 1. National Adm.hiistrative Committee. — The members of 

*the industry shall select a National Administrative Committee of not 

more than seven members, which shall be approved by the Secretary 

and the National Recovery Administrator in the following manner: 



112 

Two members shall be designated by the Virginia-Carolina Pea- 
nut Association, a Virginia corporation with its principal place of 
business at Suffolk, Virginia. 

Two members shall be designated by the Southeastern Peanut 
Association, a Georgia corporation with its principal place of busi- 
ness at Atlanta, Georgia. 

One member shall be designated by the Southwestern Peanut 
^.Association, a Texas corporation with its principal place of business 
at Fort Worth, Texas. 

One member shall be elected by a m^ajority weighted vote of the 
members of the industry in the Virginia area who are not and were 
not members of the Virginia-Carolina Peanut Association on the 
effective date hereof, and the vote of each such member of the indus- 
try for such purpose shall be entitled to the respective weight which 
the total volume of peanuts milled by him during the preceding 
year ending September 30, bears to the total peanuts milled by all 
such members of the industry in said year. 

One member shall be elected by a majority weighted vote of the 
members of the industry in the Southeastern area who are not and 
were not members of the Southeastern Peanut Association on the ef- 
fective date hereof, and the vote of each such member of the industry 
for such purpose shall be entitled to the respective weight which 
the total volume of peanuts milled by him during the preceding 
year, ending September 30, bears to the total peanuts milled by all 
such members of the industry in said year. 

(a) Organization.— KHqy the election of at least five members, 
as hereinabove provided, the National Administrative Conunittee 
may organize and function, and may elect such officers and adopt 
such rules for the conduct of its business as it may deem necessary 
or desirable. The members of the National Administrative Com- 
mittee, shall seiwe until successors are designated or appointed in 
the same manner as hereinabove provided. 

(b) Duties and Poivers. — The duties and powers of the National 
Administrative Comiinittee include the following: 

1. To act as intermediary between the members of the industry 
and the Secretary and/or National Recovery Administrator. 

2. To formulate rules, regulations, and procedure, subject to dis- 
approval by the Secretary and/or National Recovery Administrator, 
for the proper administration of this Code and the effectuation of 
the policy of the Act. 

3. To supervise, cooperate with and coordinate the activities of 
the several Regional Committees. 

4. To incur such expense and make such expenditures as it deems 
necessary properly to administer this Code and effectuate the policy 
of the x^Lct. 

5. To dispose of all disputes, questions, and complaints referred 
to it by the several Regional Committees, and to determine all 
disputes between members of the industry situated in different areas 
subject to the right of the National Recovery Administrator, on 
review, to disajoprove any action taken by it in matters relating to ' 
hours of labor, rates of pay, or other conditions of employment. 

6. To prepare a uniform sales contract, to which all members of 
the industry shall adhere, which shall provide for a definite com- 



113 

mitment by both parties as to price and date of shipment, for set- 
tlement of all disputes betAveen bu3'er and seller as to grades and 
for settlement of other disputes by arbitration. Any such form of 
sales contract so adopted may be revised from time to time by the 
National Administrative Committee and may be disapproved in 
Avhole or part at any time by the Secretary. 

(c) Admin 1st rat ion Menihers. — The National Recovery Adminis- 
trator may designate an agent who shall have the privilege of at- 
tending any meeting of the National Administrative Committee, but 
shall not be vested with voting power in the affairs of said Com- 
mittee, and shall serve without any expense to the industry. 

Sec. 2. Rey'fonal Committees. — Eegional Committees of not more 
than three members shall be appointed for the Virginia, Southeast- 
ern, and Southwestern Areas by the Peanut Association in each area, 
unless the members of the industry in any area who are not and 
were not members of the association on the effective date hereof 
milled 10% or more of the total peanuts milled in such area during 
the preceding year ending September 30. In tliat event one mem- 
ber shall be elected by a weighted majority vote of said members of 
the industry who are not and were not members of such association 
on the effective date hereof, and for such purpose the vote of each 
such member of the industry shall be entitled to the respective weight 
which the total volume of peanuts milled by him in said preceding 
year ending September 30 bears to the total peanuts milled by all 
such members of the industry in said year. 

(a) Organization. — After the selection of all members of a 
Regional Committee, as hereinabove provided, such Regional Com- 
mittee may organize and function, and may elect such officers and 
adopt such rules for the conduct of its business as it may deem neces- 
sary or desirable. The members of the several Regional Committees 
shall serve for one year from the date of election or designation, or 
until their successors are designated or elected in the same manner 
as hereinabove provided. 

(b) Duties and Powers. — Subject to the right of the National 
Recovery Administrator, on review, to disapprove any action taken 
by any Regional Committee in matters relating to hours of labor, 
rates of i^ay, or other conditions of employment, the duties and 
powers of the several Regional Committees include the following: 

1. To act as intermediary between the members of the industry 
and the National Administrative Committee. 

2. To exercise general supervision over the Administration of 
this Code and the effectuation of the policy of the Act in their 
respective areas by and with the advice, consent, and direction of 
the National Administrative Committee. 

8.' To employ a Regional Manager and such other employees as 
it deems necessary, and to define the duties and fix the compensa- 
tion of any such employees. 

4. To incur such expense and make such expenditures, subject to 
approval by the National Administrative Committee, as it deems 
necessary to the proper performance of its duties and the proper 
exercise of its powers hereunder. 

5. To dispose of all questions, complaints, and disputes arising 
under this Code within the area, or to refer any such controversy 



114 

to the National Administrative Committee with or without ruling 
and recommendation, provided, however, that if a member of any 
Regional Committee shall be a }:)arty to, or the representative of a 
"partj to, any such dispute, he shall, for the purpose of the considera- 
tion thereof, be disqualified as a member of such committee. 

(c) Administration Members. — The National Recovery Adminis- 
trator ma}" designate an agent who shall have the privilege of 
attending any meeting of any Regional Committee, but shall not be 
vested with voting power in the affairs of said Committee, and shall 
serve without any expense to the industry. 

Sec. 3. Investigations. — It shall be the duty of the Regional 
Managers, if any, and if in any area no Regional Manager has been 
appointed it shall be the duty of the Regional Committee, to investi- 
gate any alleged or suspected violation of this Code. In aid of any 
such investigation the Regional Managers or the Regional Com- 
mittees, as the case may be, may require any member of the industry 
to submit such information under oath as may be necessary or 
pertinent to such investigation. Any information so obtained by th© 
Regional Managers and/or Regional Committees shall not be dis- 
closed except to the National Administrative Committee, the Secre- 
tary, and the National Recoveiy Administrator. If any Regional 
Committee concludes that any member of the Industry within its 
area is violating any of the terms or conditions of this Code, it may 
order such violation discontinued and, in the event of noncompliance 
with any such order, it shall report such violation, together with all 
facts pertaining thereto, to the Secretary and/or the National 
Recovery Administrator. 

Article X — Expenses 

Section 1. The members of all coimnittees created hereby or here- 
inunder shall serve without compensation, but shall be entitled to 
their expenses necessarily incurred in the performance of their duties 
hereunder. 

Sec. 2. The National Administrative Committee shall periodically 
notify each Regional Committee the amount of its share of the total 
expense incurred by said National Administrative Committee, and 
such share shall be that proportion of the total expense of said 
committee which the total volume of peanuts milled in each area 
during the preceding year ending September 30 bears to the total 
volume of peanuts milled in all areas. 

Sec. 3. Each member of the industry shall pay to his Regional 
Committee a share of all expenses incurred pursuant to this Code 
and will make such paj'ment on receipt of notice of his share of such 
expenses as hereinafter provided. Such share shall, tentatively, 
be such proportion of the total expenses as each such member's esti- 
mated total peanuts milled during the current crop year commencing 
October 1 bear to the estimated total of such peanuts milled by all 
the members of the industry during said crop year. Such shares 
shall be recomputed at the end of each crop year ending Septem- 
ber 30 on the basis of each such member's actual proportion of the 
total peanuts milled in said crop year, and adjustments shall be 
made with each such member on the basis of such recomputation. 



115 

Sec. 4. Each Regional Committee shall periodically report its 
expenses, together with its share of the expense of the National 
Administrative Connnittee, to an employee, a bank, or some other 
agency designated by it, and each member of the industry shall re- 
port to such agency the peanuts milled by it during the crop year 
to date or for the whole crop year ending September 30, as the case 
ma}' be. Such agency shall then apportion the total expense among 
all the members of the industr}' as hereinabove pi'ovided. 

Article XI — ^Duration of Immunities 

The benefits, privileges, and immunities conferred by this Code 
shall cease upon its termination except with respect to acts done 
prior thereto. 

Article XII — Agents 

The Secretary and the National Recovery Administrator may each 
by designation in writing name any person, including any officer 
or employee of the Government, to act as his agent in connection 
with his respective powers and duties under any provision of tliig 
Code. 

Article XIII — Modification 

This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provision 
of Section 10 (b) of the Act, from time to time, to cancel or modify 
any order, approval, license, rule, or regulation issued under the 
Act, and specifically, but without limitation, to the right of the 
President to cancel or modify his approval of the Code or any 
conditions imposed by him upon his approval thereof. 

Aritcle XIV — Effective Time 

This Code shall become effective on the fifth day after its approval 
by the President. 

Approved Cofle No. 203. 
Kegistry No. 136-01. 

o 



Approved Code No. 204 
CODE OF FAIR COMPETITION 

FOR THE 

PLUMBING FIXTURES INDUSTRY 

As Approved on January 13, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

PLUMBING FIXTURES INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Plumbing Fixtures Industry, and hear- 
ings having been duly held thereon and the annexed report on said 
Code, containing findings with respect thereto, having been made 
and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and 
purposes of said Title of said Act; and do hereby order that said 
Code of Fair Competition be and it is hereby approved ; provided, 
however, that the application of the provisions of Section 7 or 
Article VIII, in so far as they provide for the establishment of 
differential discounts as between wholesalers and other classes of 
purchasers (as defined in such section) and for wholesaler and 
other purchase price levels, be, and they hereby are, stayed for a 
period of sixty (60) days in order to afford consideration of the 
objections of any interested parties to such provisions, at the expira- 
tion of which period the said provisions shall become effective unless 
I shall, b}^ my further order otherwise determine, or extend such 
stay. 

Hugh S. Johnson, 
Administrator for Industi^l Recovery. 

Approval Recommended : 

Malcolm Muir, 

Division Adimnistrator. 

Washington, D.C, 

January 13, 1934. 

83194° 313-77 84 (117) 



The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Plumbing Fixtures Industry (including the Enameled Cast Iron 
Plumbing Fixture Industry, Vitreous C-hina Plumbing Fixture In- 
dustry, Sanitary Seat Industry, and the Sanitary Brass Plumbing 
Fitting Industry) and on the public hearing conducted thereon in 
Washington, D.C., on August 30, 1933, in accordance with tiie pro- 
visions of the National Industrial Recovery Act. 

INDUSTRY BACKGROUND 

The Plumbing Fixtures Industry represents a composite group of 
manufacturers of sanitary plumbing products such as bath tubs, 
lavatories, sinks, brass fittings, and other related articles. In the 
industry's peak year, 1925, the total volume of business was esti- 
mated in excess of $200,000,000. To produce this volume, about 
35,000 workers were directly employed. In 1931, the most recent 
year for which statistics are available, the volume of business had 
dropped to approximately $86,000,000 and about 20,000 workers were 
employed on part-time basis. In June, the largest month of this 
year, approximately the same number of workers were employed 
on part-time basis as in 1931. 

HOURS AND WAGES 

The Code establishes a 40-hour week. Minimum rates of wages 
established are 40 cents per hour for males over 21 years of age in 
the North and 35 cents per hour in the South ; 35 cents per hour for 
females over 21 years of age; and for all employees under 21 years 
of age, 32 cents per hour or 80 percent of the minimum rate for 
adult male employees. Women employees at the same work will 
receive the same pay as male workers. The maximum hour provi- 
sions are not to apply to any employee in emergencies but in each 
special case, at least time and one half the normal rate shall be 
paid all employees working in excess of the maximum hours. 

Child labor is prohibited. 

There is also a clause providing that a " Safety and Health 
Manual " for the improvement of working conditions be submitted 
by the Code Authority for the approval of the Administrator. 

ECONOMIC EFFECT AND FEATURES OF THE CODE 

The Plumbing Fixtures Industry is largely dependent upon new 
construction for its volume. With new residential construction work, 
upon which this industry largely depends for a market, averaging 
between 10 and 15 percent of normal in 1933, this industry has 
subsisted primarily on modernization work which has not been 

(118) 



119 

sufficient to provide much production or increased employment. 
Despite the deplorable condition of the construction industry, the 
Code will increase employment within the industry about 15 percent 
with a larger percentage increase in the payrolls. A fact worthy 
of mention is that the Code does not add appreciably to the cost of 
construction. 

Another feature of the Code, worthy of note, is that providing for 
the elimination of the sale in the United States of all but first grade 
ware guaranteed against manufacturing defects. This provision 
protects the consumer against a long standing malpractice wherein 
he often received second grade products (commonly known as culls) 
though paying for first grade. 

A forward step in the stabilization of the plumbing industry was 
consummated by the coordination with this Code of those of the 
plumbing wholesaling and plumbing contracting fields by means of 
which action many differences and problems between the several ele- 
ments of the industry have been eradicated or rectified. 

Furthermore, to achieve fair and equitable methods of distri- 
bution within the industry, separate wholesale and retail purchase 
levels are to be established by each manufacturer, such price levels 
to form the basis of cost determination by plumbing wholesalers 
and contractors in arriving at their selling prices. 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the pro- 
ceedings in this matter; 

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will 
provide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanctions and supervi- 
sion, by eliminating unfair competitive practices, by promoting the 
fullest possible utilization of the present productive capacity of 
industries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasing the consumption of in- 
dustrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving stand- 
ards of labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof; and that the applicant 
associations are industrial associations truly representative of the 
aforesaid Industry; and that said associations impose no inequitable 
restrictions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 



120 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 
not been deprived of the right to be heard prior to approval of said 
Code. 

For these reasons, therefore, I have approved this Code. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
January 13, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

PLUMBING FIXTURES 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 Plumbing Fixtures Industry including 
Enameled Cast Iron Plumbing Fixtures Industry, Vitreous China 
Plumbing Fixture Industry, Sanitary Seat Industry, Sanitary Brass 
Plumbing Fitting Industry, and shall be the standard of fair com- 
petition for such industries and shall be binding upon every member 
thereof. 

Aeticle II — Definitions 

Section 1. Industry. — The term " industry ", as used herein, in- 
cludes the manufacture and sale of : 

(a) Enameled cast iron plumbing fixtures, such as bath tubs, 
shower receptors, lavatories, sinks, drinking fountains, laundry 
trays, closet tanks, accessories, and the like* 

(b) Vitreous China plumbing fixtures, such as lavatories, drinking 
fountains, closet bowls, closet tanks, urinals, bath tubs, accessories, 
and the like; 

(c) Seats of whatever composition, for installation on and for use 
in connection with closet bowls and the like; 

(d) Sanitary brass plumbing fittings, such as bath fittings, shower 
fittings, lavatory fittings, sink fittings, drinking fountain fittings, and 
other completed fittings and trimmings for use in connection with 
plumbing fixtures and the like; 

(e) Such branches and subdivisions thereof and such related in- 
dustries as may from time to time, with the approval of the Adminis- 
trator, be included under the provisions of this Code. 

Sec. 2. Employee. — The term " employee " as used herein, includes 
anyone engaged in the industries in any capacity receiving compen- 
sation for his services irrespective of the nature or method of pay- 
ment of such compensation. 

Sec. 3. Employer. — The term " employer " as used herein, includes 
anyone by whom any such employee is compensated or employed. 

Sec. 4. Manufacturer or Member of the hidustries. — The term 
" manufacturer " or " member of the industries " includes anyone 
engaged in the industries as above defined, or any portion thereof, 
either as an employer or on his own behalf. 

Sec. 5. President, Act, AdimnlstratoT. — The terms " President ", 
"Act ", and "Administrator " as used herein shall mean, respectively, 
the President of the United States, Title I of the National Indus- 
trial Recovery Act, and the Administrator for Industrial Recovery. 

(121) 



122 

Sec. 6. Association.. — The term "Association " means, respectively : 

(a) Sanitary Cast Iron Enamel Ware Association 

(b) Vitreous China Plumbing Fixture Association 

(c) Seat Manufacturers' Association 

(d) Sanitary Brass Manufacturers' Association 

(e) National Brass Association 

Sec. 7. U^iited States. — The terms " United States " or " this coun- 
try ", as used herein, include all of the territorj' of the United States 
of America, including its insular and maritime possessions, but 
excluding the Philippine Islands. 

Article III — Maximum Hours 

Section 1. Maximum Hours of Work. — No employee shall be per- 
mitted to work in excess of forty (40) hours in an}'^ one week, or 
eight (8) hours in any twenty-four (24) hour period, or regularly 
in excess of six (6) days in any seven (7) day period. 

Sec. 2. Exempt Employees. — The maximum hours fixed in the 
foregoing section shall not apply to salesmen, in the field nor to em- 
ploj-ees in office or factory in managerial, supervisory, executive, and 
technical capacities who receive compensation in excess of thirty-five 
dollars ($35.00) per week. All such employees shall be listed by 
their employers with the Code Authority. 

Sec. 3. Emergencies. — The maximum hours fixed in the foregoing 
Section 1 shall not apply to any employee in emergencies; but in eacli 
special case, at least one and one half (IV2) times his normal rate 
shall be paid for hours worked in excess of the maximum hours. At 
the end of each calendar month every employer shall report to the 
Code Authority, in such detail as may be required, all such cases. 

Article IV — IMinimum Wages 

Section 1. Minimum, Hourly Rates. — The minimum rates of pay 
for all employees, except those provided for in Section 3 of this 
Article, shall be as follows : 

(a) No male employee over twenty-one (21) years of age shall 
be paid at a rate less than forty (40) cents per hour, except in the 
states of Virginia, North Carolina, South Carolina, Georgia, Florida, 
Alabama, Tennessee, Mississippi, Arkansas, Louisiana, Oklahoma, 
Texas, New Mexico, and Arizona no male emploj^ee over twenty-one 
(21) years of age shall be paid at a rate less than thirty-five (35) 
cents per hour. 

(b) No female employee over twenty-one (21) years of age shall 
be paid at a rate less than thirty-five (35) cents per hour. 

(c) No employee under twenty-one (21) years of age shall be 
paid at the rate of less than 32^ per hour or 80% of the minimum 
rate for adult male employees; provided, however, that the number 
of minor employees receiving less than the minimum rates for adult 
employees shall not exceed 5% of the total number of emplo3'ees in 
any one factory. INIinors in excess of said 5% may be employed 
provided that they be [)aid not less than the minimum rates for 
adult employees. 



123 

Seo. 2. Incentive Compensation. — The fore<joinf; Section estab- 
lishes a minimum rate of pay, regardless of whether an employee 
is compensated on a time-rate, piecework, or other basis. 

Sec. 3. Minimum Salwy Kates. — No employer shall pay any ac- 
counting, clerical, or office employee at less than the rate of fifteen 
dollars ($15) a Aveek; provided, however, that office boys and girls 
under twenty-one (21) years of age may be paid not less than 80% 
of such minimum wage; but the total' number of such office boys 
and girls receiving less than fifteen dollars ($15.00) a week shall not 
exceed 5% of the total number of employees covered by the provi- 
sions of this paragraph. Minor office boys and girls in excess of said 
5% may be employed provided that they be paid not less than the 
minimum rate for adult employees. 

Sec. 4> Female Employees. — Female employees performing sub- 
stantially the same work as male employees shall receive the same 
rates of pay as male employees. 

Sec. 5. Wages above the Minimuin. — To the extent practicable, 
the differences in hourly rates of pay or hourly earnings above the 
minimum existing on June 16, 1933, shall be maintained, and in no 
case shall they be decreased. Within thirty (30) days all such re- 
adjustments made since June 16, 1933, shall be reported to the 
Administrator through the Code Authority. 

Article V — General Labor Provisions 

Section 1, Child Lahor. — No person under sixteen (16) years of 
age shall be employed in the industry, nor shall anyone under eight- 
een (18) years of age be employed at operations or occupations 
hazardous in nature or detrimental to health. The Code Authority 
shall submit to the Administrator within ninety days after the 
approval of this Code, a list of such occupations. In any State an 
employer shall be deemed to have complied with this provision if 
he shall have on file a certificate or permit duly issued by the au- 
thority in such State empowered to issue employment or age cer- 
tificates or permits, showing that the employee is of the required age. 

Sec. 2. Required Provisions. — (a) Employees shall have the right 
to organize and bargain collectively through representatives of their 
own choosing, and shall be free from the interference, restraint, or 
coercion of employers of labor or their agents in the designation of 
such representatives or in self -organization or in other concerted 
activities for the purpose of collective bargaining or other mutual 
aid or protection. 

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

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

Sec. 3. Posting Code. — Each employer shall post in conspicuous 
places full copies of this Code. 

Sec. 4. Reclassi-flcation. — Employers shall not reclassify employees 
or duties of occupations performed by employees so as to defeat the 
purposes of the Act. 

83194 ° 813-77 34 2 



124 

Sec. 5. Reports. — (a) Each employer in these industrios shall fur- 
nish monthly to the Code Authority on forms to be furnished by 
said Code Authority, a sworn report of the number of persons em- 
l^loyed, Avaire rates in effect, and hours worked durino- the preceding 
month in his plant or plants, classified as to occupations, together 
with other sworn production or employment reports as the Code 
Authority may require from time to time, and an affidavit that the 
employer has complied with all the provisions of this Code. 

(b) Individual reports shall not be available to anyone except 
the Administrator and the representatives of the Code Authority 
(who shall not be in the employ of any employer under this Code), 
provided, however, that in the event of a complaint the Code Au- 
thority shall have access to all information pertinent to such com- 
plaint. Total figures compiled from such reports shall be available 
to the members of the Industry. 

Sec. 6. Health and Safety. — No employer shall maintain in his 
plant standards of health, safety, and sanitation, or other conditions 
relating to employment lower than the standards approved for the 
Industry by the xVclministrator or provided by the laws of the 
jurisdiction, A " Safety and Health Manual " for the Industries 
shall be submitted by the Code Authority for approval by the 
Administrator. 

Sec. 7. State Laws. — Within each State this Code shall not super- 
sede any laws of such State imposing more stringent requirements 
on employers regarding the age of employees, wages, hours of work, 
health, or general working conditions than provided by this Code. 

Article VI — Administratiox 

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

Section 1. Organization and Constitution of Code Aidhority. — 
(a) The Code Authority shall consist of seven (7) individuals, 
or such other number as may be approved from time to time by the 
Administrator, to be selected as hereinafter set forth. The Adminis- 
trator, in his discretion, may appoint not more than three (3) 
additional members without vote to represent the Administrator or 
such groups or interests as may be agreed upon. 

(b) The following industries shall each have the following num- 
ber of representatives : 

Industry : Representatives 

Enameled Cast Iron Plumbing Fixture Industry 2 persons 

Vitreous China Plumbing Fixture Industry 2 persons 

Sanitary Seat Industry 1 person 

Sanitary Brass Plumbing Fitting Industry 2 })orsons 

Each of the above industries' representatives on the Code Au- 
thority shall be nominated by the Chairman of that industry's 
association; except that in the Sanitary Brass Plumbing Fitting 
Industry one representiitive shall be nominated by the Chairman 
of the Sanitary Brass Manufacturers' Association and one by the 
Chairman of the National Brass Association and elected in the 
manner hereinafter described. 



125 

The members of the Code Authority shall be elected at meetings 
of tlie members of the industries called immediately after the ap- 
proval of this Code by the Administrator and held immediately 
])rior to the effective date thereof. The meetings shall be called by 
the respective associations and notice thereof shall be sent by regis- 
tered mail to all members of the respective industries. The notice 
shall specifically state that voting at the meeting may be in person 
or by proxy. The members of the Code Authority shall be elected 
by memb?rs of the industries present in person or by proxy at such 
meetings by a majority vote of members of the industries present 
in person or by proxy as such. 

in the event that this Code shall be wholly adopted by related 
industries, jirovsions shall be made for their representation upon 
the Code Authority by election in the before-mentioned manner, and 
the number of memb?rs of the Code Authority shall be increased 
by one (1) for each such additional industry. 

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

(d) In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with the 
provisions of the Act, the Administrator may provide such hearings 
as he may deem proper ; and thereafter if he shall find that the Code 
Authority is not truly representative or does not comply with the 
provisions of this Code appropriate modification in the methods of 
selection of the Code Authority may be made. 

(e) Participation in any administrative activities or endeavors 
under this Code shall be based on the following: 

(1) Payment of the pro rata share of the cost of administering 
this Code bj?^ becoming a member of one of the Associations; or 

(2) Pa^-ment to the appropriate association of an equitable pro 
rata share of the expense incurred by such Association in administer- 
ing this Code. 

Sec. 2. Duties and Potoers of Code Authority. — The Code Au- 
thority shall have the following duties and powers to the extent 
permitted by the Act, subject to the right of the Administrator, on 
review, to disapprove any action taken b}^ the Code Authority. 

(a) The Code Authority shall cause this Code to be enforced, 
and subject to review by the Administrator, shall designate such 
agents and delegate such authority to them as may be necessar}' or 
convenient. 

(b) It shall investigate complaints of violations of this Code and 
shall take such steps as may be necessary to secure an equitable dis- 
position of any such complaint. The Code Authority may provide 
for its own organization, and may make such rules as to meetings, 
notices, waivers of notice, and other procedural matters as it may 
from time to time determine; provided, however, that notice of meet- 
ings shall be sent to the Administrator sufficiently in advance of such 



126 

meetings to permit the Administrator or his representatives to attend 
such meetings if desired. The Code Authority may, to such extent 
as it may determine, act by and through the Fair Competition Com- 
mittee of each industry. 

(c) The Chairman of each Association shall nominate a Fair Com- 
petition Commitee consisting of five members who shall be elected by 
a majority vote of the members of each industry. This Committee 
shall be charged with the duties of investigating complaints of 
unfair trade competition and adjusting same in the light of the 
provisions of this Code. In cases where anyone accused of unfair 
competition refuses to abide by a decision of a majority of the Fair 
Competition Committee, the Committee shall refer its findings and 
recommendations with respect thereto to the Code Authority for 
disposition. The final appeal within the Industries shall be to the 
Code Authority. Appeals from its decisions shall be referred to the 
Administrator for disposition. The decisions of the Code Authority 
under this paragraph shall be subject to review by the Administrator. 

(d) The Code Authority may require from time to time the indus- 
try or industries, subject to its authority, to submit in total figures 
for its own consideration and for transmittal to the Administrator 
such reports, statistical data, and other information as it may require. 
Such information shall be held confidential and shall not be open to 
inspection except as to totals of the industry. The compilation of 
reports shall be performed by individuals who are not in any way 
connected with members of the Industry or Industries. 

(e) In addition to the information required to be submitted to the 
Code Authority as set forth in tliis Article, there shall be furnished 
to government agencies such statistical iniormation as the Admin- 
istrator may deem necessary for the purposes recited in Section 3 
(a) of the National Industrial Recovery Act. 

Article VII — Trade Practices 

The following practices constitute unfair metliods of competition 
for members of the industry and are prohibited : 

Section 1. Discrimination. — To discruninate in prices, terms, dis- 
counts, allowances, guarantees, or in any other way between pur- 
chasers of the same class, except as hereinafter set lortli in Section 
T of Article VIII hereof, whether the material is sold for pur- 
chaser's stock, for specific building operations, or for any other spe- 
cific purposes; provided, however, that nothing in this Code shall 
be construed to prevent any manufacturer from selecting within tlie 
classes established his own customers in bona fide transactions. 

Sec. 2. Secret Rebates. — Withholding from, or inserting in the 
invoice, or other sales documents, facts which make said documents 
false records, wholly or in part, of the transaction represented on 
the face thereof, except where modified arrangements are on file with 
the Code Authority. The secret payment or allowance of rebates, 
refunds, commissions, credits, or unearned discounts, whether in the 
form of money or otherwise, or the secret extension to certain pur-' 
chasers of special services or privileges not extended to all purchasers 
on like terms and conditions. 

Sec. 8. Postdating and Predating . — Postdating or predating of 
quotations, orders, invoices, statements, or other saJes documents. 



127 

Sec. 4. Inducing Breach of Contract. — Inducing or attempting 
to induce the breach of a contract between a competitor and his 
customer (hirinii; the term of such contract; provided, however, that 
nothing in this rule shall be taken to prevent a manufacturer who 
has quoted on the material involved from calling to the attention of 
the jjurchaser, even though the order has been placed and accepted, 
that the materials for which the order has been placed do not con- 
form in size, quantity, or quality to those on which the quotations 
were solicited. 

JSec. 5. Repudiation of Gontra<its. — Repudiation of accepted orders 
and other contracts or their attempted cancellation, except for legal 
cause or by mutual consent. 

Sec. 6. Lump sum and Comhination Bidding. — Quoting a total 
price on any schedule of materials which does not show, and/or 
which is lower than the sum of, the regular unit prices of the articles 
comprising the schedule. Where an article consists of two or more 
parts, which themselves are considered units by the Industry, the 
unit price of the combination article shall not be less than the sum 
of the unit prices of the articles which comprise it. 

Sec. T. False Marking or Branding.- — The failure to plainly and 
permanently brand or mark for identification with the name or 
trade jnark of the manufacturer all products of the industries except 
jDarts; and the failure to supply facsimiles of such brands or trade 
marks by each manufacturer to the Code Authority. The false 
marking or branding of any product of the industries which has the 
tendency to mislead or deceive customers or prospective customers, 
whether as to grade, quality, quantity, substance, character, nature, 
origin, size, finish, preparation, or otherwise. 

Sec. 8. Misrepresentation or False or Misleadiiig Advertising. — ■ 
The making or causing or knowinglj^ permitting to be made or 
published any false, materially inaccurate, or deceptive statement by 
way of advertisment or otherwise, whether concerning the grade, 
quality, quantity, substance, character, nature, origin, size, finish, 
or preparation of any product of the industries or the credit terms, 
values, policies, or services of any member of the industries or 
otherwise, having the tendency or capacity to mislead or deceive 
customers or prospective customers. 

Sec. 9. Suhstitution. — The furnishing of articles more or less ex- 
pensive, of better or inferior quality, or of larger or smaller size than 
specified without making the proper adjustments in the quoted price 
and clearly indicating the nature of the substitution. 

Sec. 10. Defamation. — The defamation of competitors or members 
of other branches of the plumbing industry by falsely imputing to 
them dishonorable conduct, inability to perform contracts, question- 
able credit standing, or by other false representations or by the false 
disparagement of the grade or quality of their goods. 

Sec. 11. Commercial Brihery. — To give, permit to be given, or di- 
recth' offer to give, anything of value for the purpose of influencing 
or rewarding the action of any employee, agent, or representative or 
another in relation to the business of the emplo3'^er of such employee, 
the principal of such agent or the represented party, without the 
knowledge of such employer, principal, or party. Commercial brib- 
ery provisions shall not be construed to prohibit free and general 



128 

distribution of articles commonly used for advertising except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

Sec. 12. Protection. — The sale or offering for sale of materials for 
stock under any form of guarantee to a purchaser or prospective pur- 
chaser against either advance or decline in the price of said product, 
except as herein otherwise provided. 

Sec. 13. Threats of Litigation. — The publishing or circulating of 
threats of suits for infringement of patents or trade marks or of any 
other legal proceedings not in good faith with the tendency or effect 
of harassing competitors or intimidating their customers. 

Sec. 14. Espionage of Competitors. — Securing confidential infor- 
mation concerning the business of a competitor by a false or mislead- 
ing statement or representation, by a false impersonation of one in 
authority, by bribery, or by any other unfair method. 

Sec. 15. Used Materials. — Inasmuch as the handling of both new 
and second-hand building materials by the same merchant encour- 
ages substitution and misrepresentation of products to the consumer, 
to the detriment of both the consumer and the manufacturer, the sale 
of the products of this industry by manufacturers to anyone who 
buys for resale used or damaged building materials, plumbing prod- 
ucts, heating products, and/or pipe fittings and valves. 

Sec. 16. Other Unfair Practices. — Nothing in this Code shall limit 
the effect of any adjudication by the Courts, or holding by the Fed- 
eral Trade Commission on complaint, finding, and order, that any 
practice or method is unfair, providing that such adjudication or 
holding is not inconsistent with any provision of the Act or of this 
Code. 

Article VIII — Marketing Policies 

The following practices shall be followed by all members of the 
industry or industries in the marketing of their products and devia- 
tion from such practices and rules shall constitute unfair compe- 
tition and is prohibited. 

Section 1. Or^ders. — All orders over $100.00 shall be signed and 
cover specified articles to be delivered on or before a definite date. 
They shall be either accepted or rejected by the manufacturer when 
received. Only orders for stock tor shipment within thirty days 
of date of receipt of order, and orders for specific jobs, will be 
accepted at the prices in effect at date of receipt of order. All 
other orders shall be subject to the prices in effect at date of ship- 
ment. The minimum size and maximum delivery time for specific 
job orders shall be prescribed from time to time, and exceptions to 
this rule allowed by the Code Authority. 

Sec. 2. Invoices. — All sales shall be invoiced at the time of ship- 
ment and such invoices together with credit memoranda and all 
other documents relating to the sale, shall clearly and accurately 
state all of the essential elements of the sale, including types and 
sizes of products, quantities, prices, credit terms, discounts, allow- 
ances, date of order, date of acceptance, date of shipment, and other 
pertinent information. Copies of invoices, together with credit 
memoranda and all other sales documents, shall be filed with the 



129 

Code Authority as and when directed by the Code Authority, and 
in the event of a complaint, sworn copies of invoices, credit memo- 
randa, and all other sales documents shall be sent immediately to 
the Code Authority upon its request. 

Sec. 3. Standardization of Products. — After uniform sizes, drill- 
ings, grading rules, and minimum specifications shall have been 
established by the industry subject to review by the Administrator, 
proper charge shall be made for deviation therefrom. 

Sec. 4. Grading. — No manufacturer shall sell in the United States 
other than first-grade products guaranteed against manufacturing 
defects. Such guarantee shall be uniform among all manufacturers, 
as specified by the Code Authority, and shall provide for furnish- 
ing new products of the same type and size to replace those which 
have proved defective on the same basis as the original purchase, 
but it shall not cover charges for labor or consequential damages, 
provided, however, that in exceptional cases, a manufacturer may 
make additional allowances because of defective materials upon 
filing a complete report thereof with the Code Authority. 

Sec. 5. Field tnsjjectioyi. — No manufacturer shall allow credit 
for a defective article until the fact of such defect shall have been 
established by an authorized representative of the manufacturer and 
the article shall have been destroyed or returned to the manufacturer, 
except as iw^y be otherwise required by law, or a court of competent 
jurisdiction. Deviation from this rule as to each industry may be 
permitted b}' a majority vote of the members thereof. 

Sec. G. Co7isigned Stocks. — No manufacturer shall consign stocks 
of tlie products of these industries to distributors, contractors, manu- 
facturers' agents, and/or others. All consigned stocks in existence 
on the effective date shall be entirely liquidated by the consigning 
manufacturer as soon as practicable and within a period of not to 
exceed 90 days therefrom or at the expiration of contracts existing 
on that date which b}- their terms cannot be terminated within 90 
days, copies of such contracts to be filed with the Code Authority. 

Sec. 7. Distribution. — The functions of manufacturing, whole- 
saling, and retailing the products of these industries each constitute 
a separate business. 

^n recognition of the fact that the products of these industries 
manufactured by the signatories of this Code could not be installed 
in ultimate service without the assembling, warehousing, and bulk 
selling of accessory and complementary products performed by 
wholesalers in the plumbing industry, said wholesalers, in considera- 
tion of such service and in consideration of purchasing in whole- 
sale quantities, shall be entitled to and shall receive a discount from 
published prices greater than the discount a( corded to any person, 
firm, or corporation, that does not perform the assembling, ware- 
housing, and bulk selling functions hereinbefore described. The 
difference between the discount allowed to wholesalers and the dis- 
count accorded to other purchasers is to be determined by each 
individual manufacturer; but in no case is it to be less than a per- 
centage determined by the Code Authority, with the approval of the 
Administrator, and modifications made from time to time, based on 
a study of the value to the consumer of the distributing, assembling, 
and warehousing functions. Such study shall be made by an im- 



130 

partial fact-finding agency under the direction of the Code 
Authority. 

No manufacturer may sell on the wholesaler purchase price level 
except to an individual, firm, corporation, or other person who buys 
and assembles at wholesale and sells plumbing supplies to retailers 
or to the retail division of his own business; has a proper invest- 
ment in his business; maintain an adequate showroom, a warehouse, 
and sufficiently complete stock of such commodities to meet the nor- 
mal plumbing supply requirements of his trade in his territory and 
maintains an adequate bookkeeping system, sales office, and delivery 
/service. 

Manufacturers' sales to all others who purchase the products of 
these Industries for resale shall be on the retailer purchase price 
level, and no manufacturer shall sell the products of these Industries 
to any one other than for resale, except to employees for their own 
use. 

No manufacturer shall sell the products of these Industries to 
anyone except to manufacturers subject to this Code at better than 
his wholesaler purchase price level. Customers who qualify for such 
level may be further classified by each manufacturer on the basis of 
volume of purchases or on any other basis as specified in his pub- 
lished prices and other conditions of sale which he has filed with the 
Code Authority in accordance with Section 10 of this Article, but in 
no event shall the special discount exceed five (5%) percent beyond 
the net price for the wholesaler level. 

Each manufacturer shall file with the Code Authority, when re- 
quired by it, but in confidence, the names of customers sold by him 
on each price level, his schedule of special discounts, and such other 
information as the Code Authority may require. If the Code Au- 
thority, after investigation, finds that any manufacturer has clas- 
sified a customer contrary to the provisions of this Section, it shall 
60 notify the manufacturer and require him thereafter to sell such 
customer on the proper level. 

Any manufacturer engaged in more than one level of the Plumb- 
ing Industry (manufacturing-wholesaling-retailing) shall conduct 
each business separately and with an individual system of accounting 
for each in accordance with the respective codes for the various 
levels of the Industry, 

In order that the consumer may be informed of the fair prices of 
products of the Industries, each manufacturer shall publish and 
distribute a suggested fair price for sales to the consumer of each of 
his products, except parts and specialties.* 

Sec. 8. Cost Protection. — The Code Authority shall promptly 
cause to be developed and submitted to the Administrator a uniform 
system of cost accounting designed to make possible the accurate 
determination by each member of the Industries of his own indi- 
vidual cost. 

Upon approval by the Administrator of such system of cost ac- 
couiitmg, necessary information concerning it shall be distributed 
by the Code Authority to all members of the Industries. 

Thereafter, no manufacturer shall sell or exchange his products 
in the United States (except on close-outs) at a price or upon such 
terms and conditions as will result in the customer paying for such 



• See paragraph 2 of order approving this Code. 



131 

goods less than the cost to the seller of producing and marketing 
the same in this countiy as determined by the uniform cost account- 
ing system; provided, however, that he may sell below his cost 
when necessary to meet the price of any equivalent product of any 
comi^etitor against whom he is bidding for any specihc job or order. 
All such cases are to be reported immediately to the Code Authority. 

When a manufacturer is engaged in more than one line of busi- 
ness, each business shall be considered a separate unit for purposes 
of ascertaining costs, and general expenses of all kinds shall be prop- 
erly and fairly allocated to the several business units. 

Sec. 9. Uniform Tenns of Sale. — No manufacturer shall sell his 
products on any basis more favorable to the purchaser than the 
credit terms, cash discounts for early payments aiul showroom dis- 
counts, established from time to time by the Code Authority in 
cooperation with the respective associations. 

Sec. 10. Published lists. — "Within ten (10) days after the effec- 
tive date of this Code, each manufacturer shall publish and dis- 
tribute among each class of purchaser whom he sells, his price lists 
applicable to that class for various types and sizes of products, 
including in such lists or in supplementary v\ritings, copies of 
which must be filed v^'ith the Code Authority, all of his conditions 
of sale, including trade discounts, for such class of customers. All 
changes in such price lists, discounts, and conditions of sale shall 
be filed with the Code Authority inmiediately upon prblication 
thereof. The Code Authority shall distribute such price information 
except the special discounts provided in Section 7 of this Article 
to all manufacturers of the respective Industry. No manufacturer 
shall sell his products in the United States, except on close-outs, 
to anj'one, except to employees for their own use for any purpose 
whatsoever, at any prices or on any terms and conditions other 
than those indicated in his published lists; provided, however, that 
he may sell any of his products at the price of any equivalent prod- 
uct of any competitor who is offering to sell below his own published 
prices or terms. All such cases shall be reported promptly to tlie 
Code Authority. 

Sec. 11. Close-outs. — A manufacturer may sell, at less than his 
])ub]ished prices, products acknowledged by the Code Authority to 
be obsolete. Invoices for such sales shall be clearly marked " Special 
Price on Account of Close-out." 

Article IX — Modification 

Section 1. Presidential Modification. — This Code and all the provi- 
sions 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 Recoverj'^ 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. 
By presenting this Code, however, the members of these Industries 
and others assenting hereto do not thereby consent to any modifica- 
tion thereof, and they reserve the right to object individually or 
jointly to any such modification. 



132 

Sec. 2. Amendment and Temrdnation. — Such of the provisions of 
this Code as are not required to be included therein by the Act may 
be modified, added to or eliminated, or this Code may be terminated 
in its entirety at any time in the manner hereinafter provided, sub- 
ject, however, to the provisions of Section 7 of Article VIII. 

Proposals for modifying or eliminating provisions of this Code 
or for adopting additions to or substitutions for the Code or for 
terminating the Code in its entirety may be made in writing to the 
Code Authority by any member of the Industries subject to this 
Code. The Code Authority shall include such proposal in full in 
the written notice of the next meeting of the Industries. The ques- 
tion of the adoption of such proposal shall be voted upon at such 
meeting, and, if a majority in plant capacity and number of the 
members of the Industries present vote in favor of such proposal, the 
Code Authority shall present such proposal to the N.R.A. for Presi- 
dential approval when such approval is required. Such proposal 
ehall provide for its effective date. The provisions of this paragraph 
shall not constitute a limitation upon any right to propose modifica- 
tions or amendments to this Code which may be granted or conferred 
by the Act. 

Article X — 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 XI — Subterfuge 

No manufacturer shall use any subterfuge to frustrate the spirit 
and intent of this Code. 

Article XII — Effective Date 

This Code shall become effective on the first or the sixteenth day 
of the month, whichever shall first occur, after its approval by the 
President. 



Approved Code No. 204. 
Registry No. 1129-03. 



o 



Approved Code No. 205 
CODE OF FAIR COMPETITION 

FOR THE 

METAL WINDOW INDUSTRY 

As Approved on January 13, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

METAL WINDOW INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Metal Window Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 

QirGCtGQ to tllB X^rGSlclGIlt * 

NOW, THEREFORE,' on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Pres- 
ident, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code Complies in all respects with 
the pertinent provisions and will promote the policy and purposes 
of said Title of said Act; and do hereby order that said Code of Fair 
Comj^etition be and it is hereby approved. 

HUGH S. JOHNSON, 

Adininistrator for IndustHaZ Recovery, 

Approval recommended : 
Malcolm Muir, 

Division Acbniiiistrator. 

Washixgton, D.C, 

January 13^ 193 If.. 

80482° 313-10 34 (133) 



The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Metal Window Industry in the United States, as revised after the 
hearing conducted in Washington on October 11, 1933, in accordance 
with the jDrovisions of the National Industrial Recovery Act. 

PROVISIONS OF THE CODE AS TO HOURS, WAGES, AND GENERAL, LABOR 

PROVISIONS 

This Code provides for a maximum work week of forty hours with 
the following exceptions : 

(a) Employees engaged as travelling salesmen or in a managerial 
or executive capacity who earn not less than thirty-five dollars 
($35.00) per week; 

(b) Employees engaged in emergency maintenance or emergency 
repair work and watchmen. 

This Code establishes a minimum rate of pay for forty cents (40^) 
per hour with the exception that clerical and office employees shall 
be paid not less than at the rate of fifteen dollars ($15.00) per week 
and, further, that superannuated employees may be paid less than 
the minimum rate when employed on light work. 

No person under sixteen years of age shall be employed in this 
Industry. The Code provides that no employer shall reclassify 
employees for the purpose of defeating the provisions of the Act, 
and contains provisions for the posting of copies of the Code and 
for the payment of all wages in regular pay periods. 

ECONOMIC EFFECTS OF THE CODE 

According to the statistical analysis of the Division of Research 
and Planning, the total sales of the products of this Industry have 
decreased from $33,440,000 in 1929 to $1,700,000 for the first six 
months of 1933. The Industry is to a large extent controlled by the 
activities of the construction industry. 

The data furnished to the Division of Research and Planning 
would indicate that reemployment should be effected on the continu- 
ation of the present volume of business. Further reemployment will 
be dependent on and in direct proportion to the trend of general con- 
struction. The minimum wage rate established in this Code should 
increase the wages of approximately thirty percent of the factory 
employees in this Industry, and, further, equitable readjustment or 
wages is provided for all employees receiving more than the 



minimum wage rate. 



(134) 



FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter ; 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Kecovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant group is an 
industrial group truly representative of the aforesaid Industry ; and 
that said group imposes no inequitable restrictions on admission to 
membership therein. 

(d) The Code is not designed to and will not permit monopolies or 
monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them, 

(f) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said 
Code. 

For these reasons, therefore, I have approved this Code. 



Respectfully, 



Washington, D.C, 

January 13, 193^.. 



Hugh S. Johnson, 

A dministrator. 



(135) 



CODE OF FAIR COMPETITION 

FOR THE 

METAL WINDOW INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Recovery Act, 
this Code is submitted as a Code of Fair Competition for the Metal 
Window Industry, and upon approval by the President, its provi- 
sions shall be the standard of fair competition for such industry 
and shall be binding upon every member thereof. 

Article II — Definitions 

Section 1. The term " Metal Window Industry " or the " In- 
dustry", as used herein, is defined to mean the manufacturing 
and the selling and installing (by the manufacturer) of industry 
products. 

Sec. 2. The term " industry products " as used herein is defined 
to mean and include the following : 

(A) Metal windows, except that the following are not included: 

(1) Windows constructed of metal-covered woodwork, and 

(2) Windows of which the frame and/or sash sections are con- 
structed predominantly of cast metal or of structural iron or struc- 
tural steel shapes, and 

(3) Windows of which the frame and/or sash sections are con- 
structed predominantly of nonferrous metal of specially designed 
or dimensioned frame and/or sash sections for a specific project. 

(B) Hot rolled or pressed steel subframes and pressed steel stools 
(manufactured by members of this industry), which are an integral 
part of the metal window. 

(C) Mechanical operators for metal windows. 

(D) Industrial Tj^pe Steel Doors. The term "industrial type 
steel door " as used herein is defined to mean and include a door con- 
structed with the stiles and rails of cold rolled, drawn, formed or 
pressed steel, or built-up using hot rolled structural steel shapes, and 
having a sash panel consisting of a metal window (as described in 
Section 2 (a) of this Article) together with a steel frame for such 
door constructed of cold rolled, formed, pressed steel, or built-up 
using hot rolled structural steel shapes. 

Sec. 3. The term " member of the industry " includes, but without 
limitation, any individual, partnership, association, corporation, or 
other form of enterprise engaged in the industry, either as an 
employer or on his or its own behalf. 

(136) 



137 

Sec. 4. The term " member of the Code " includes any member of 
the industry who shall expressly signify assent to this Code by sign- 
ing and delivering to the Code Authority a letter substantially in the 
form as set forth in Attachment A attached hereto. 

Sec. 0. The term " employee " as used herein includes any and all 
persons engaged in the industry, however compensated, except a 
member of the industry. 

Sec. 6. The term " dealer " includes, but without limitation, any 
individual, i^artnership, association, corporation, or other form of 
enterprise engaged in the purchase of industry products for resale. 

Sec. 7. The term " trade " as used herein means all channels of 
distribution for the products of this industry. 

Sec. 8. The term " Institute " as used herein is defined to mean 
the " Metal Window Institute." 

Sec. 9. The term " Commissioner " refers to the executive of the 
Institute then in office who bears that title. 

Sec. 10. 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 

maximum hours 

Section 1. No emploj^ee, except as hereinafter provided in the 
Article, shall be permitted to work in excess of forty (40) hours in 
any week (seven (7) day period) or eight (8) hours in any day 
(twenty-four (24) hour period) or six (6) days in any week (seven 
(7) day period), except that a tolerance not to exceed two (2) hours 
in any day (twenty-four (24) hour period) may be permitted in 
cases of special emergency manufacturing operations for a -specific 
project under a specific and binding contract, provided, however, 
that the maximum number of hours worked in any one week (seven 

(7) day period) shall not exceed forty (40) hours. In any such 
special case all hours worked in excess of the normal, that is, eight 

(8) hours in any day (twenty-four (24) hour period), shall be re- 
ported to the Code Authority indicating the reason for and the num- 
ber of employees engaged in such special emergency manufacturing 
operations. 

HOURS FOR clerical AND OFFICE EMPLOYEES 

Sec. 2. No person employed in clerical or office work shall be per- 
mitted to work in excess of forty (40) hours in any week (seven 
(7) day period), or eight (8) hours in any day (twenty-four (24) 
hour period), or more than twelve (12) days in any fourteen (14) 
day period. 

exceptions as to hours 

Sec. 3. The provisions of this Article shall not apply to traveling 
salesmen or to persons employed in a managerial or executive capac- 
ity who earn not less than thirty-five dollars ($35.00) per week, or 



138 

to employees engaged in emergency maintenance or emergency 
repair work. 

Sec. 4. Employees engaged on installation work may be permitted 
to work not in excess of forty (40) hours in any week (seven (7) 
day period), nor eight (8) hours in any day (twenty-four (24) hour 
period), nor more than five (5) days in any seven (7) day period. 

Sec. 5. Employees engaged as watchmen at the establishment of 
the manufacturer may be permitted to work not in excess of fifty-six 
(66) hours in any week, nor in excess of six (6) days in any week 
(seven (7) day period). 

EMPLOYMENT BY SEVERAL EMPLOYERS 

Sec. 6. 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 

MINIMUM WAGES 

Section 1. No employee shall be paid in any pay period less than 
at the rate of forty cents (40^) per hour, except as hereinafter other- 
wise provided. 

MINIMUM WAGES FOR CLERICAL AND OFFICE EMPLOYEES 

Sec. 2. No clerical or office employee shall be paid in any pay 
period less than at the rate of fifteen dollars ($15.00) per week of 
forty (40) hours, except that office boys and/or girls under eighteen 
(18) years of age shall be paid not less than eighty percent (80%) 
of the said rate. Such office boys and/or girls shall be limited in 
any calendar month to one (1) for each twenty (20) office employees 
employed by any one employer. 

PIECEWORK COMPENSATION — MINIMUM WAGES 

Sec. 3. This Article establishes a minimum rate of pay which shall 
apply, irrespective of whether an employee is actually compensated 
on a time-rate, piecework, or other basis. 

OVERTIME FOR EMERGENCY AVORK 

Sec. 4. Employees engaged on emergency maintenance or emer- 
gency repair work, shall be paid at least one and one half (11/2) 
times the normal rate for hours worked in excess of the eight (8) 
hours in any one day (twenty-four (24) hour period), or forty 
(40) hours in any seven (7) day period, as provided in Article III. 
Such overtime shall not exceed six (6) hours in any seven (7) day 
period except in cases of emergency maintenance or emergency 
repair work involving breakdown^ or protection of life or property, 
provided that all such cases of emergency work shall be reported 
to the Code Authority. 



139 

EVASION THROUGH REEMPLOYMENT 

Sec. 5, No employee now employed at the rate in excess of the 
minimum shall be discharged and re-employed at a lower rate for 
the purpose of evading the provisions of this Code. 

W'AGES ABOVE THE MINIMUM 

Sec. 6. An equitable adjustment shall be made in the wage differ- 
entials for all employees receiving more than the minimum wage 
as provided in this Code unless such adjustment has already been 
made, and in no case ghall the wage differentials be decreased. All 
action taken under this section shall be reported to the Code 
Authority. 

FEMALE EMPLOYEES 

Sec. 7. Female employees performing substantially the same work 
as male employees shall receive the same rate of pay as male em- 
ployee^:. 

SUPERANNUATED EMPLOYEES 

Sec. 8. A person whose earning capacity is limited because of 
age or phj^sical 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 emplo}?^- 
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. 

Article V — General Labor Provisions 

Section 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 hazard- 
ous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator within 30 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 
as to age if he shall have on file a certificate or permit dvdy issued 
by the Authority in such State empowered to issue employment or 
age certificates or permits showing that the emploj^ee is of the 
required age. 

provisions FROM THE ACT 

Sec. 2. 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 nmtual aid or protection, and 

30482° 313-10 34 2 



140 

(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 houre of 
labor, minimum rates of pay, and other conditions of employment 
approved or prescribed by the President, 

RECLASSIFICATION OF EMPLOYEES 

Sec. 3. No employer shall reclassify employees or duties of occu- 
pations performed for the purpose of defeating the provisions of the 
Act or of this Code, nor shall any employer engage in any other 
subterfuge for this purpose. 

STANDARDS FOR SAFETY AND HEALTH 

Sec. 4. Every emploj^er 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 
submitted by the Code Authority to the Administrator within sixty 
(60) days after the effective date of this Code. 

STATE LAWS 

Sec. 5. No provisions in this Code shall supersede any State or 
Federal law which imposes on employers more stringent require- 
ments as to age of employees, vrages, hours of work, or as to safety, 
health, sanitary or general working conditions or insurance, or fire 
protection, than are imposed by this Code. 

POSTING 

Sec. G. On and after the effective date of this Code all employers 
agree to post and keep posted in accessible places in their offices and 
factories all provisions of this Code which affect hours of employ- 
ment, rates of pay, and all other labor provisions. 

payment of wages 

Sec. 7. All employers shall make payment of all wages due in law- 
ful 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 pensions, insurance, or such 
benefits other than those voluntarily paid by employees. Employers 
or their agents shall not accept, directly 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 wages 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 caj^acity who earn not less than thirty-five 
dollars ($35.00) per week, nor to persons employed in clerical or 



141 

office work. The wages for })crsons employed in clerical or office 
work shall be paid at the end of pay periods not to exceed bi-monthly 
periods. 

Article YI — Okgakization, Powers, and Duties of the Code 

Authority 

organization and constitution 

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

Sec. 2. The Code Authority shall consist of six (6) members of the 
industry, to be elected as follows : 

^Members of the industry shall elect the industry members of the 
Code Authority by a majority vote of the members of the industry, 
provided, however, that five (5) of such members of the Code Au- 
thority shall be directors, officers, or executives of members of the 
Institute, and one (1) such member of the Code Authority shall be 
elected from the directors, officers, or executives of a nonmember of 
the Institute, if any, except that in the event not less than eighty 
percent (80%) of the members of the industry are also members of 
the Institute, then all the members of the Code Authority may be 
elected from the members of the Institute, and provided, further, that 
not more than one (1) such Institute industry member of the Code 
Authority shall be elected from the same member of the industry. 

Sec. 3. The Institute is hereby designated as the agency to con- 
duct an election of the members of the Code Authority within ten 
(10) days after the eifective date of this Code, and any other elections 
of members of the Code Authority which may thereafter be held. 
Members of the Code Authority shall be elected to serve for a term 
of one (1) year or until their successors are elected at the next annual 
meeting of the members of the industry. 

In the event of any vacancy in the membership of the Code Au- 
thority, a special meeting of the members of the industry for an 
election to fill the incomplete terms of such members shall be called. 
Notice of the time and place of each election shall be sent by regis- 
tered 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. Not more than one (1) repre- 
sentative of each member of the industry shall vote at anv election. 
Each member of the industry shall be entitled to one vote for each 
one hundred thousand dollars ($100,000) of net sales of industry 
products in the previous calendar year, provided that no such mem- 
ber shall have more than three (3) votes, and provided further, that 
each member shall have at least one vote, irrespective of the amount 
of net sales reported. 

Sec. 4. In addition to membership as above provided, there may 
be three (3) members, without vote, to be appointed by the Admin- 
istrator 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. Such 
representatives, together with the Administrator, shall be given 
notice of, and may sit at, all meetings of the Code Authority, 



142 

Sec. 5. The Institute 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. 

Sec. 6. 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. 7. Members of the industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authority and to 
participate in the selection of the members thereof by assenting to 
and complying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. Such 
reasonable share of the expenses of administration shall be deter- 
mined by the Code Authorit3^ subject to review by the Administrator, 
on the basis of volume of business and/or such other factors as may 
be deemed equitable. 

Sec. 8. 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 Autliority. 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. 

TOWERS AND DUTIES 

Sec. 9. The Code Authority shall have the following further 
powers and duties, the exercise of which shall be subject to the right 
of the Administrator, on review, to disapprove. 

(a) To execute the provisions of this Code and provide for (he 
compliance of the industry with the provisions of the Act. 

(b) To adopt bylaws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To obtain from members of the industry such information and 
reports as are required for the administration of the Code. No in- 
dividual 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 the Metal Window Institute and/or such other agency" 
as it deems proper for the carrying out of any of its activities pro- 
vided for herein, provided that nothing herein shall relieve the Code 
Authority of its duties or responsibilities under this Code and that 
such trade association and/or agency shall at all times be subject to 
and comply with the provisions hereof. 



143 

(e) 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. 

(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 industries and to recommend to the 
Administrator measures for industrial planning, including stabiliza- 
tion of employment, provided that no member of the industry shall 
have the power to investigate directly the manufacturing procedure 
of any other member of the industry without the consent of such 
member. 

Article VII — Trade-Practice Eules 

GENERAL DEFINITION 

For all purposes of the Code the acts described in this Article 
shall constitute unfair practices. Any member of the industr}^ 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. 

liule 1. Selling below cost. — No member of the industry shall sell 
any industry product at a price below his own individual cost. How- 
ever, any member may meet the price competition of anj^one whose 
costs under the Code are lower. 

Pursuant to the provisions of Article VI. the Code Authority 
shall formulate or cause to be formulated standard methods or sys- 
tems of cost accounting for use in this industry, which methods or 
systems shall be adaptable to the cost accounting procedure of and 
to the business of this industry. Such methods or systems shall 
specify the factors that shall determine the cost for each member of 
the industry pursuant to the provisions of this section. Upon ap- 
l^roval of such methods or S3^stems 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 conform to and be at least as complete and detailed as 
the cost-accounting method or system recommended by the Code 
Authority and api>roved by the Administrator. 

Rule 2. Price Discrimination. — An}' discrimination in price for 
industry products between purchasers of the same grade, qualit}^, or 
quantity of products sold, after making due allowance for cost of 
fabrication, selling, servicing, and transportation is an unfair method 
of competition. 

Rule 3. Secret Rebates. — The secret payment or allowance of 
rebates, refunds, commissions, or unearned discounts, whether in 
the form of money or otherwise, or secretly extending to certain pur- 
chasers special services, credit allowances, or other privileges, with 



144 

the intent and/or effect, directly or indirectly, of selling industry 
products at terms more favorable to the buyer than the discount 
schedules and/or terms and conditions of sale filed with the Code 
Authority is an unfair method of competition. 

Rule 4. Commercial Bribery. — No member of the industry shall 
give, permit to be given, or directly offer to give, anything of value 
for the purpose of influencing or re\Yarding the action of any 
employee, agent, or representative of another in relation to the 
business of the employer of such employee, the principal of such 
agent or the represented party, without the knowledge of such 
employer, principal, or party. Commercial bribery provisions shall 
not be construed to prohibit free and general distribution of articles 
commonly used for advertising, except so far as such articles are 
actually used for commercial bribery, as hereinabove described. 

Rule 5. Contingent Quotations. — Making the acceptance of any 
separately priced nonindustry material in a quotation for industry 
products or the making of another quotation for a nonindustry 
material contingent upon the acceptance of a quotation for industry 
products, where the purpose or the effect thereof is to secure to a 
buyor a special price, is an unfair method of competition. 

Rule 6. Comhined Quotations. — No member of the industry .shall 
combine the requirements for the products of this industry for two 
or more distinct and separate projects in one quotation to the same 
purchaser for the purpose and with the intent of concealing the 
true selling price for the products of each or all of such projects. 
Under this section a project shall be considered distinct and separate 
from another project unless constructed on the same site and the 
awarding authority, including the owner, and his agents (including 
the architect and the engineer) are the same entities. 

Rule 7. /Substitution of Materials. — Deliberate departure from 
plans and specifications when quoting on contract requirements if 
made for the purpose or with the effect of misleading the buyer 
as to the grade, quality, or quantity of products offered or sold, 
or the quotation of any substitute material without clearly identify- 
ing the nature of such substitute material, Ls an unfair method of 
competition. 

Rule 8. Illusory Contracts. — The postdating or predating of a 
quotation, contract, whether written or verbal, invoice or receipt, the 
withholding from or inserting in a contract or invoice facts which 
make it a false record, wholly or in part, of the transaction repre- 
sented on the face thereof, and/or entering into a contract for indus- 
try products for the purpose of avoiding one's obligations under 
Article VIII is an unfair trade practice. 

Rule 9. Combination Sales of Industry and. Non-Industry Prod- 
ucts. — No member of the industry shall combine quotations for any 
product of this industry with any quotation 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 10. Inducing Breach of Contracts. — No member of the in- 
dustry shall induce or attempt to induce the breach of existing con- 
tracts between members of the industry and their customers, or 
interfere with or obstruct the performance of any such contractual 



145 

duties or services with the purpose or effect of hampering, injuring, 
or embarrassing competitors in their business. 

Rule 11. Defamation of Competitors. — No member of the industry 
shall defame or disparage competing members of the industry by 
false]}' imputing to them dishonorable conduct, inability to perform 
contracts or to make deliveries, questionable credit standing, or by 
other false reports having the tendency to mislead or deceiA^e cus- 
tomers or prospective customers. 

Rule 12. Enticement of Employees. — No member of the industry 
shall maliciously entice an employee or representative of a competi- 
tor from his employment for the purpose or effect of injuring or 
embarrassing such a competitor in his business. Nothing herein 
shall prevent an emploj^ee or representative from offering his serv- 
ices to a competitor nor prevent any member from employing an 
employee of another member where the initiative for such change of 
employment comes from the emploj^ee or representative. 

Rule 13. Black! isting. — No member of the industry shall join or 
participate with other members of the industry who with such 
member constitute a substantial number of members of the industry 
or who together control a substantial percent of the business in any 
specific product or products of the industry, in any transaction 
known in law as a blacklist, including any practice or device (such 
as a white list), which accomplishes the purpose of a blacklist. 

Rule 14. Inaccurate Advertising. — No member of the industry 
shall publish advertising (whether printed, radio, display, or 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 limitations, 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 15. Inaccurate References to Competitors.^ etc. — No member 
of the industry shall publish advertising Avhich refers inaccurately 
in any material particular to any competitors or their goods, prices, 
values, credit terms, policies, or services. 

Rule IG. Other Unfair Trade Practices. — Nothing in this code 
shall limit the effect of an}' 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 adjudi- 
cation or holding is not inconsistent with any provision of the Act 
or of this Code. 

Article VIII — Publicity of Prices, Terms, and Conditioxs of 

Sale 

Section 1. Within fifteen (15) days after the effective date of 
this Code each member of the industry shall file and shall maintain 
on file Avith the Code Authority, or with such agency as the Code 
Authority may designate, a full and complete schedule of its dis- 
counts f.o.b. shipping point and terms and conditions of sale and 
installation to its trade for: 

(a) Industry products uianufactured of steel, and 



146 

(b) Window screens (steel, aluminum, or bronze) which are 
an integral part of a metal window and sold and/or installed 
as a part of an industr}'' product, 
and which are generalized on pages 100-106 inch, of Section I " Gen- 
eral Information **, dated May 1, 1932, and which discounts, terms, 
and conditions of sale are applicable to the Gross List Prices 
scheduled under : 

INDUSTRY PRODUCTS 

(a) Section IV. ''Sub-frames", pages 401-403 inch, dated 
Aug. 1, 1933; and 

(b) Section V. "Various and Special", pages 501, 551-554 
inch, dated Aug. 1, 1933 ; and 

(c) Section VI. ''Pivoted AVindows ", pages 600-607 inch, 
dated May 1, 1932, pages 651-652, dated Aug. 1, 1933, pages 
653-654, dated May 1, 1932, pages 655-658, dated Aug. 1, 1933; 
and 

(d) Section VII. " Conmiercial Projected ", pages 700-703 
inch, pages 751-752, dated Mav 1, 1932, and page 753, dated 
Auff. 1, 1933; and 

(e) Section VIII. "Architectural Projected", pages 800-801. 
851-852^ dated May 1, 1932; and 

(f) Section IX. "Continuous Windows", page 900, dated 
May 1, 1932; and 

(g) Section X. "Mechanical Operators", pages 1000-1003 
inch, dated May 1, 1932, pages 1005-1006, dated Aug. 1, 1933; 
and 

(h) Section XI. "Doors", page 1100, dated May 1, 1932, 
pages 1101-llOi inch, pages 1110-1112 inch, pages 1120-1122 
incL, pages 1131. 1132, 1141, 1142, 1151, 1152, 1161, 1162, 1171, 
1172, 1173, dated Aug. 1, 1933; and 

(i) Section XII. "Detention Windows", pases 1201, 1225- 
1229, inch, 1251-1254 inch, 1275-1278 inch, dated Aug. 1, 1933; 
and 

(j) Section XIII, "Spring-balance Windows", pages 1301- 
1304, inch. 1351-1354, inch, dated Aug. 1, 1933; and 

(k) Section XIV, "Double-hung Windows", pages 1401- 
1406. inch, dated Aug. 1, 1933; and 

(1) Section XV. "Basement Windows", page 1501, dated 
Aug. 1, 1933; and 

(m) Section XVI, "Light Casements", pages 1601-1603, 
inch, 1605, 1651, 1652, dated Aug. 1, 1933; and 

(n) Section XVII, "Intermediate Casements", pages 1701- 
1704, inch, 1751-1758, inch, dated Aug. 1, 1933; and 

(o) Section XVIII, " Casement Projected ", pages 1801-1804, 
inch, and 1851, dated Aug. 1, 1933; and 

(p) Section XIX, "Casement Combination", pages 1901- 
1906, inch, dated Aug. 1, 1933; and 

(q) Section XX, " Heavy Casements ", pages 2001-2011, inch, 
dated Aug. 1, 1933; and 

(r) Section XXI, " Inswing Casement Combination ", pages 
2101-2104, inch, 2151, 2152, dated Aug. 1, 1933; and 



147 

NONINDUSTRY PRODUCTS 

, (s) Section III, " Screens ", pages 301-319, inch, and pages 
351 and 352, dated Aug. 1, 1933, 
which sections are part of a Schedule of Gross List Prices issued by 
the Metal Window Institute, a copy of which has been filed with 
the Administrator, and is incorporated in this Code by reference. 

Sec. 2. Copies of all such schedules of discounts, terms, and condi- 
tions of sale shall be immediately distributed by the Code Authority 
to all members of the industr}^ and such schedules of discounts, terms, 
and conditions of sale, and the " Gross List Prices " as heretofore 
mentioned shall be open to inspection at all reasonable times by any 
interested party. 

Sec. 3. Each member of the industry may file with the Code Au- 
thority a revised schedule of discounts, terms, and conditions of 
sale from time to time thereafter, provided, however, that sucH 
revisions shall be filed on the tenth (10th) day in advance of the 
effective date of any such revision. 

Sec. 4. Copies of all such revised discounts, terms, and conditions 
of sale shall be immediately distributed by the Code Authority to 
each member of the industry, who may thereupon file a revision 
of its schedule of discounts, terms, and conditions of sale on file, 
and applicable to the industry products involved, and such revisions 
shall become effective upon the date when the first such revised 
schedule shall go into effect. 

Sec. 5. All such schedules shall include all discounts, terms, and 
conditions of sale to each of the member's class of trade, provided 
however, that no schedule shall provide for prices less than the mem- 
ber's individual cost as determined by Rule 1 of Article VII, unless 
such schedule is filed to meet the lower cost of a competitor, pur- 
suant to the provisions of Rule 1 of Article VII hereof. 

Sec. 6. All discount schedules so filed shall follow the uniform 
outline for publishing discounts as may hereafter be adopted by 
the Code Authority as most appropriate for use in the marketing of 
the industry products included in the Gross Price Lists. 

Sec 7. Members of the industry shall file and maintain on file 
list prices, together with all discounts, terms, and conditions of sale 
applicable thereto, in the same manner as described in the foregoing 
sections of this Article, for all industry products not now included 
in the " Gross List Prices " covered by Section 1 of this Article and 
specifically including industry products which may subsequently be 
manufactured by members of this industry and included under 
Section 2 of Article II. 

Sec. 8. No member of the industry shall sell or offer for sale any 
industry product to which such discounts apply at such prices or 
on such terms and conditions of sale as will result in the purchaser 
obtaining such product at less than the prices determined by the 
discounts previously filed by such member, or on more favorable 
terms and conditions than the terms and conditions of sale previously 
filed by such member, in accordance with the provisions of this 
Article and in effect at the time of such sale. 

Sec. 9. No member of the industry shall render any service, other 
than advice or consultation, to any purchaser of any industry prod- 



148 

uct, in connection with the sale or installation of any such product, 
unless a schedule of such services shall have been previously filed 
with the Code Authority, pursuant to the provisions of this Article, 
and unless fair compensation for such services shall be paid by the 
purchaser. 

Article IX — Installation (Field Erection) 

Section 1. The industry submits that one of the serious abuses 
affecting it in the past has been the faulty installation of industry 
products by nonmembers of the industry, for which members of this 
industry have been called upon to bear responsibility. To remedy 
this abuse it is provided that members of the industry shall include 
the installation (field erection) of the products of this industry, in 
all quotations and/or contracts for the sale of such products in excess 
of $3,000.00 for Light Casements, $2,000.00 for Double Hung Win- 
dows, and $1,000.00 for all other products (all based on the net 
f .o.b. selling price to the trade quoted as provided herein by Article 
VIII), except that the installation (field erection) of the following 
classes of industry products is not required to be included in any 
quotation or contract involving such products, regardless of the 
amount of such quotation or contract: 

(a) Pressed Steel Subframes, Section IV, 

(b) " Commodity Stock " and " Commodity Standard " prod- 
ucts when sold to dealers, and / 

(c) Industry products manufactured and introduced by a 
member of the industry under an exclusive patent, or controlled 
and manufactured by a member of the industry under a license 
by a patentee, 

which classification of products are identified by the schedule of 
" Gross Price List " mentioned herein in Article VIII. 

Sec. 2. It shall be one of the duties of the Code Authority to. 
study conditions in the industry with respect to the problem of the 
proper installation (field erection) of industry products and to sub- 
mit to the Administrator within ninety (90) days after the effective 
date of the Code, its recommendations concerning such problem and 
the operation of the provisions of Section 1 of this Article. The 
Administrator may, thereupon, if he deems it necessary, provide a 
hearing to further determine whether the provisions of Section 1 
are effectuating the policies of the Act and, thereafter, if he finds 
that such provisions, either in whole or in part, are not effectuating 
the policies of the Act, may require an appropriate modification, or 
the elimination thereof. 

Article X — Labor Provisions For Installation (Field Erection) 

Members of the Industry engaged in installation (field erection) 
of the products or commodities of this Industry, shall be governed 
by the hours, wages, and other labor provisions of such approved 
code or codes for the construction industry as may be applicable 
thereto, to be determined, in cases of doubt, by the Administrator 
after such notice and hearing as he may prescribe. 



149 
Article XI — Penalties and Liquidated Damages 

Section 1. Any violation of any provision of this Code by any 
member of the industry shall constitute a violation of the Code by 
such member. 

Sec. 2. Reco^izing that the violation by any member of the Code 
of any of the rules oi fair competition expressed in Rules 1, 2, 3, 
4, 6, 6, 7, 8, 9, and 10 of Article VII, in Sections 8 and 9 of Article 
VIII, and in Section 1 of Article IX of the Code will disrupt the 
normal course of fair competition in the industry and undermine 
the fair wages and reasonable working hours herein undertaken, 
besides inflicting serious damages on other members, and that it 
will be impossible fairly to assess the amount of such damage to 
any individual member of the Code, it is hereby agreed by and 
among all members of the Code that each member of the Code who 
shall violate any of the above enumerated rules of fair competition 
shall pay to the Commissioner, in trust, as and for liquidated dam- 
ages, a sum equal to not more than twenty percent (20%) of the 
gross amount of any contract or order for industry products taken 
in violation of any such rule or rules. Such funds shall be applied 
to the administration of the Code. The Code Authority, by the 
affirmative vote of two thirds, may waive any liability for such 
liquidation damages as may be imposed by or pursuant to this pro- 
vision of the Code, if, in its discretion, it so decides that such viola- 
tion was innocently made and that the collection of such damage 
is not necessary in order to effectuate the policy of Title I of the 
National Industrial Recovery Act. 

Sec. 3. Every member of the Code shall sign and transmit to the 
Code Authority a letter in the form set forth in Attachment A 
appended hereto. 

Sec. 4. The penalty for violation of provisions of the Code by a 
member of the Code other than those above enumerated shall be as 
provided in the National Industrial Recovery Act. 

Article XII — JNIodification 

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 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. 

Sec. 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. Any sucJh application may 
be made by the Code Authority. 



150 
Article XIII — 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 XIV — Reports 

In addition to information required to be submitted to the Code 
Authority, all or any of the persons subject to this Code shall furnish 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in section 3 (a) of the Act to such 
Federal and State Agencies as the Administrator may designate; 
and nothing in this Code shall relieve any person of any existing 
obligation to furnish reports to government agencies. 

Article XV — Subsidiary Companies 

Corporations or firms shall be considered to be affiliated to any 
member of the industry (called " the parent corporation ") when 
the latter, either directly, or through any intermediate agency, owns 
a majority of the outstanding voting capital stock of the affiliate. 
Any such parent corporation shall be responsible for the observance 
by any affiliated corporation of all appropriate provisions of this 
Code. 

Article XVI — Registration of Members of the Industry 

Each member of the industry shall within thirty (30) days of 
the effective date of this Code register with the Code Authority. 
All members of the industry who may engage in the industry 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 as provided herein might cause an 
injustice to any member of the industry. 

Article XVII — Effective Date 

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

Approved Code No. 205. 
Registry No. 1122-1 01. 



ATTACHMENT "A" 

FoEM OF Letter of Assent to the Code 

To The Code Authority, Metal Window Indusiry, Washington, D.G. 

Genti^men : The undersigned, desiring to become a member of the Code of 
Ftiir Competition of the Metal Window Industry, a copy of which is annexed 
hereto, hereby assents to and agrees to be bound by all the provisions of said 
code, and effective ten days after the approval of the Code by the President 
as therein provided, by the signing and delivery of this letter becomes a member 
and, effective as aforesaid, hereby agrees with every person, firm, association, 
and corporation who shall then be or thereafter become a member of the 
Code, that the Code shall constitute a valid and binding contract between the 
undersigned and all such other members, and that for all purposes of the Code 
the address of the undersigned until it shall file with the Commissioner written 
notice of a change of such address, shall be as set forth at the foot of this 
letter. 

Yours very truly, 



By 

(Official title) 



Address 
(151) 



o 



Approved Code No. 206 
CODE OF FAIR COMPETITION 

FOR THE 

FELDSPAR INDUSTRY 

As Approved on January 16, 1934 



ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

FELDSPAR INDUSTRY 

An application ha\nng 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 approval of a Code of 
Fair Competition for the Feldspar Industry, and hearings having 
been duly held thereon and the annexed report on said Code, con- 
taining findings with respect thereto, having been made and directed 
to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Order No. 6543-A, 
dated December 30, 1933, and otherwise; do hereby incorporate by 
reference said annexed report and do find that said Code complies 
in all respects with the pertinent provisions and will promote the 
policy and purposes of said Title of said Act; and do hereby order 
that said Code of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Malcolm Muir, 

Division Administrator. 

Washington, D.C, 

January 16^ 193 Jf.. 

30480° 313-8 34 (153) 



The President, 

The' White House. 
Sir: This is a report on the Code of Fair Competition for the 
Feldspar Industry, a hearing on which was conducted in Washington 
on the fourth of November 1933 in accordance with the provisions 
of the National Industrial Recovery Act. 

Hours 

The Code provides that no employee engaged in milling or grinding 
operations shall be permitted to work in excess of 40 hours in any 
one week or 8 hours in any one day or 6 days in any 7-day period ; 
that no employee engaged in mining operations shall be permitted to 
work in excess of 40 hours per week, averaged over a 3-month period, 
or in excess of 48 hours in any one week; and that no clerical or 
office employee shall be permitted to work in excess of 40 hours in any 
one week or 10 hours in any one day. The following are excepted : 

(a) Employees in executive, administrative, or supervisory ca- 
pacities, who receive $35 or more per week; 

(b) Employees on emergency maintenance or emergency repair 
work, who, however, shall be paid at least one and one third times 
the normal rate for time worked in excess of 8 hours in any one day. 

Wages 

The Code provides for minimum rates of pay of 25 cents per hour 
in the South and 30 cents per hour in the North for employees en- 
gaged in mining operations; for minimum rates of pay of 30 cents 
per hour in the South and 35 cents per hour in the North for em- 
ployees engaged in milling and grinding operations; and for a 
minimum rate of pay of $13.50 for clerical and office employees. 

Aged or physically handicapped persons may be employed at such 
wages and for such hours as shall be stated in a certificate issued by 
a State Authority designated by the United States Department of 
Labor. 

Child Labor 

The employment of persons under 16 years of age and, in occu- 
pations hazardous in nature or dangerous to health, of persons under 
18 years of age is prohibited. 

Economic Effects of the Code 

The miners and the grinders of feldspar have joined together for 
the purpose of presenting this Code. It is thought that the opera- 
tion of these two groups under one Code will help to solve some of 
the most difficult problems of the industry. 

(154) 



155 

From the year 1929 to the year 1932, the volume of sales of crude 
feldspar declined about 47% and the value of sales about 58%. 
Present grinding operations are at the rate of approximately 13% 
of capacity, and in 1929 were at the rate of only 28% of capacity. 

The minimum wages prescribed in the Code are more than 100% 
higher than the lowest wages now being paid in some sections. 
Maximum weekly working hours are being reduced by approximately 
25%. It is believed that the Code will increase employment in this 
industry about 25% and that it will increase wages at least 30%. 

Findings 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter ; 

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive j^ractices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of Said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant associa- 
tion is an industrial association truly representative of the aforesaid 
Industry; and that said association imposes no inequitable restric- 
tions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to aj)proval of said 
Code. 

For these reasons, therefore,! have approved this Code. 
Respectfully, 

Hugh S. Johnson, 

A dministraior, 
Jantjaey 16, 1934, 



CODE OF FAIR COMPETITION 

FOR THE 

FELDSPAR INDUSTRY 

Article I — Purfosh 

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 Feldspar Industry, and shall be binding 
upon every member thereof. 

Article II— Defi>: itions 

(a) The term "Feldspar Industry", as used herein, includes the 
mining, grinding, and sale by the miner or grinder of feldspar 
products and such related branches and/or subdivisions of this in- 
dustry as may from time to time be included under the provisions 
of this Code by the President after such due notice and hearing as 
he may prescribe. 

(b) The term '' member of the industry " includes, but without 
limitation, any business entity engaged in the Feldspar Industry 
either as an employer or on his or its own belialf. 

(c) The term " employer ", as used herein, includes any individual 
or enterprise by whom any employee is compensated or employed. 

(d) The term "employee", as used herein, includes any and all 
persons in the industry, except a member of the industry, however 
compensated. 

(e) The term "grinder" as used herein includes any member of 
the industry engaged in the grinding of mined feldspar. 

(f ) The term " miner " as used herein includes any member of the 
industry engaged in the mining of crude feldspar. 

(g) The term " South " as used herein includes the States of Vir- 
ginia, Tennessee, North Carolina, South Carolina, Florida, Georgia, 
Alabama, Mississippi, and Louisiana. 

(h) The term "North" as used herein includes those States not 
included within the foregoing definition of the South. 

(i) 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. 

(156) 



157 
Article III — Labor 

A. Hours of Work — 1. (a) Mining Opei^ations. — Subject to the 
exceptions hereinafter provided no employee shall be permitted to 
work in excess of forty (40) hours per week averaged over a three 
(3) months' period nor in excess of forty-eight (48) hours in any 
one week. The Code Authority shall specify the dates on which 
the three (3) month periods used for averaging hours shall begin 
and end. In order to permit the proper arrangement of these dates, 
the first period used for averaging may, if so specified by the Code 
Authority', be shorter than three (3) months. 

(b) Milling or Grinding Ope7'ations. — Subject to the exceptions 
hereinafter provided no employee shall be permitted to work in 
excess of forty (40) hours in any one (1) week, or eight (8) hours 
in any one (1) day or six (6) days in any seven (7) day period. 

2. No office or clerical employees shall be permitted to work in 
excess of forty (40) hours in any one (1) week or in excess of ten 
(10) hours in any twenty-four (24) hour period. 

3. The maximum hours established herein shall not apply to em- 
ployees engaged in executive, administrative, or supervisory work, 
who receive thirty-five dollars ($35.00) or more per week. 

4. The maximum hours established herein 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 at least one and one third (IVs) times the normal 
rate shall be paid for hours worked in excess of eight (8) hours 
in any one (1) twenty-four (24) hour period. 

5. No employer shall engage any employee for any time which, 
when totaled with that already performed for another employer 
or employers, exceeds the maximum permitted herein. 

6. Employers who personally perform manual work or are en- 
gaged in mechanical operations shall, to the extent permitted by 
the Act, be subject to the maximum hours prescribed in this Article. 

7. An employer shall so administer work in his charge as to 
provide a maximum practicable continuity of emploj^ment for his 
personnel. 

B. Wages — 1. (a) Mining Operations. — No employee shall be paid 
at less than the rate of twenty-five cents (250) per hour in the South 
and thirty cents (30^) per hour in the North. 

(b) Milling or Grinding Operations. — No employee shall be paid 
at less than the rate of thirty cents (300) per hour in the South and 
thirty-five cents (350) per hour in the North. 

2. No employee engaged in clerical or office work shall be paid at 
less than the rate of thirteen dollars and fifty cents ($13.50) per 
week of forty (40) hours. 

3. This Article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time rate, tonnage rate, 
or other basis. 

4. An equitable adjustment shall be made in the wages of all em- 
ployees now receiving more than the minimum wage as provided in 
this Code. Within thirty (30) days after the effective date each 
employer shall report to the Administrator through the Code 
Authority, all such readjustments made by him since June 16, 1933. 



158 

5. Female employees performing substantially the same work as 
male employees shall receive the same rates of pay as male employees. 

6. An employer shall make payment of all wages due in lawful 
currency or by negotiable check therefor, payable on demand. Wages 
shall be paid at regular periods. These wages shall be exempt from 
any payments for pensions, insurance, or sick benefits other than 
those voluntarily paid by the wage earners. 

7. No employer or his agent shall accept any rebate directly or 
indirectly on such wages or give anything of value or extend favors 
to any person for the purpose of influencing rates of wages or the 
working conditions of his employees. 

8. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a. 
wage below the minimum established by this Code if the employer 
obtains from the State Authority designated by the United States 
Department of Labor a certificate authorizing his employment at 
such wages and for such hours as shall be stated in the certificate. 
Each employer shall file with the Code Authority a list of all such 
persons employed by him. 

Article IV — 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 hazardous in nature or detrimental to 
health. The Code Authority shall submit to the Administrator 
within thirty (30) days after the effective date of this Code, a list 
of such occupations. In any State an employer shall be deemed to 
have complied with this provision if he shall have on file a certifi- 
cate or permit duly issued by the authority in such State empowered 
to issue employment or age certificates or permits, showing that 
the employee is of the required age. 

2. Employees shall have the right to organize and bargain collec- 
tively through representatives of their own choosing, and shall be 
free from the interference, restraint, or coercion of 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 emplo5aiient to join any company union or to 
refrain from joining, organizing, or assisting a labor organization 
of his own choosing, and 

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

5. No provision of this Code shall supersede any state or federal 
laws imposing more stringent requirements on employers regulating 
the age of employees, wages, hours of work, or health, fire, or 
general conditions than are imposed under this Code. 

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees or engage in any subterfuge so as to 
defeat the purposes of the Act. 



159 

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

8. Every employer shall provide for the health and safety of his 
workmen. 

Article V — Administration 

1. To effectuate the policies of the National Industrial Recovery 
Act and to provide for the administration of the Code, a Code 
Authority composed of six (6) members, three (3) of whom shall 
represent members of the industry engaged in grinding operations 
and three (3) of whom shall represent members of the industry 
engaged in mining operations solely, and independent of jTrindirio; 
interests, shall be elected by members of the industry, by such fair 
methods of election as the Administrator may approve. In addi- 
tion, the Administrator, if he so elects, may appoint not more than 
three (3) nonvoting members of the Code Authority to serve, with- 
out expense to the Industry, for such terms as he may specify, as 
his representatives or as representatives of such interested grouns 
as he may designate. Subject to the provisions of subsection (d) of 
section 5 of this Article all members of the industry enoagecl in 
mining operations shall be entitled to participate in the selection of 
such members of the Code Authority as represent the mining o])era- 
tions of the industry and all members of the industry engaged in 
grinding operations shall be entitled to participate in the selection 
of such members of the Code Authority as represent the grinding 
operations of the industry. 

2. The Feldspar Association is hereby designated as the agency 
to conduct an election of members of the Code Authority within 
fifteen (15) days after the effective date of this Code and any other 
elections of members of the Code Authority which may thereafter 
be held. Members of the Code Authority shall be elected to serve 
for a term of one (1) year or until their successors are elected at 
the next annual meeting of the industry. In the event of any 
vacancy in the membership of the Code Authority, a special meeting 
of the members of the industry for an election to fill the incomplete 
term of such members shall be called. Notice of each eleftion shall 
be sent to all members of the industry at least ten (10) days in 
advance of any such election, and voting at such election may be 
by person, by proxy, or by letter ballot. 

3. In order that the Code Authority shall at all times be tri'Jy ren- 
resentative of the industry and in other respects comply with the pro- 
visions of the Act, the Administrator may provide such hearings 
as he may deem proper; and thereafter if he shall find that tue 
Code Authority is not truly representative or does not in other re- 
spects comply with the provisions of the Act, may require an 
appropriate modification in the method of selection of the Code 
Authority. 

4. Each trade or industrial association participating in the selec- 
tion or activities of the Code Authority shall: (1) impose no in- 
equitable restrictions on membership; and (2) submit to the Ad- 
ministrator true copies of its articles of association, by-laws, regu- 
lations and any such other information as to activities as the Admin- 
istrator may deem necessary to effectuate the purposes of the Act. 



160 

5. In addition to the powers and duties herein specifically con- 
ferred upon the Code Authority it shall have the following powers 
and duties, subject to the right of the Administrator on review to 
disapprove any action by the Code Authority pursuant to this Code : 

(a) The Code Authority shall be charged with the supervision 
and administration of this Code, and shall have the right to estab- 
lish its own rules for the conduct of its business. 

(b) In order that the President may be informed of the extent 
of the observance of the provisions of this Code and of the extent to 
Avhich the declared policy of the National Industrial Recovery Act 
is being effectuated in the industry as herein defined, the Code 
Authority shall make such reports as the Administrator may re- 
quire, periodically, or as often as he may direct. Each employer 
shall make such sworn or unsworn reports to the Code Authority as 
to wages, hours of labor, number of employees, quantity and value 
of production, shipments, stocks on hand, sales prices and other 
matters as the Code Authority may require for the administration of 
this Code. In addition to the information required to be submitted 
to the Code Authority, there shall be furnished to government 
agencies such statistical information as the Administrator may deem 
necei^sary for the purposes recited in Section (3) (a) of the Act. 
Any and all information furnished to the Code Authority shall be 
furnished to such agency, not a member of the industry, as may be 
designated by the Code Authority. Such information shall be 
deemed confidential and shall not be divulged to any employer 
except in summary, but shall be available to the Administrator 
upon request. 

(c) The Code Authority shall receive, and if it shall approve shall 
present for the approval of the President, any proposals for supple- 
mentary provisions or amendments to this Code, or any part hereof, 
with respect to wages, hours, trade practices, and related matters or 
conditions in the industry. 

(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 by paying 
their reasonable pro rata share of the expense of the maintenance oi 
the said Code Authority and its activities, either b}^ becoming a mem- 
ber of the Feldspar Association or by paying to the Code Authority 
or to such agency as it may designate such pro rata share. Such 
shares 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. 

(e) The Code Authority may designate the Feldspar Association, 
or any other proper agency, to assist it in maintaining its accounts 
and in procuring the collection of the cost of administration due 
from members of the industry. The Code Authority may from 
time to time appoint such subcommittees or designate such agencies 
and may delegate to any of them such of its powers and its duties 
as it shall deem necessary and proper, in order to effectuate the pro- 
visions and purposes of this Code, provided, however, that the Code 
Authority shall not be relieved of final responsibility with respect 
to any such delegated powers or duties. 



161 
Article VI — Cost Accoixti^g and pRrcF.s 

A. The Code Authority shall formulate and recommend for the 
approval of the Administrator for use in the industry a uniform and 
adequate cost-accounting system, which shall be adaptable to the 
industry. Such system shall s])ecify the I'actors which shall be 
included in determininof the o})eratino; costs of employers. After 
approval of such cost-accountino; system by the Administrator each 
member of the industry shall use a cost-accounting system which is 
at least as detailed and complete as the system so approved. 

B. Xo member of the industry engaged in grinding operations 
shall sell any product at such prices or on such terms and conditions 
of sale as will result in a purchaser's paying therefor less than such 
member's individual costs as determined in accordance with the prin- 
ciples of the costing system provided for in Section A of this Article, 
except to meet the competition of another member of the industry. 

C. No member of the industry shall purchase crude feldspar from 
a member of the industry engaged in mining operations, and no mem- 
ber of the industry engaged in mining operations shall sell such 
crude feldspar to a member of the industry engaged in grinding 
operations at less than the lowest cost of a representative producer 
of crude feldspar. A representative producer of crude feldspar shall 
be a member of the industry regularly engaged in the mining of 
felds])ar and maintaining a permanent organization for conducting 
these operations. Such costs shall be determined from time to time 
by the Code Authority on the basis of adequate cost data submitted 
by such representative producers and shall be subject to review and 
modification by the xVdministrator. 

D. Members of the industry engaged in both mining and grinding 
operations as herein defined shall, for the purpose of determining 
their costs pursuant to the provisions of Section B of this Article, 
use as that element of cost described as cost of materials not less than 
the minimum prices established in accordance with Section C by the 
Code Authority for all products of members of the industry engaged 
in mining operations. 

E. The Code Authority shall formulate and submit for the ap- 
proval of the Administrator a classification of the grades of feld- 
spar in accordance with the uses thereof. After the approval thereof 
by the Administrator no member of the industry shall sell feldspar 
except in accordance with such classification. 

F. Within ten (10) days after the effective date of this Code, each 
member of the Industry shall file Avith the Code Authority a sched- 
ule individually prepared by him, showing his current prices, dis- 
counts, and all terms and conditions of sale, and thereafter shall 
maintain on file with the Code Authority at all times a schedule 
showing such current prices, discounts, and terms and conditions of 
sale, and an}^ deviation therefrom in connection with any sale of his 
products shall constitute a violation of this Code. 

Any member of the Industry may, from time to time, file a re- 
vised schedule with the Code Authority, such revision to become 
effective on date specified therein, provided, however, that such re- 
vision shall be filed with the Code Authority at least ten (10) days 
in advance of the effective date thereof. Copies of such revisions 



162 

with notice of the effective date specified, shall be immediately sent 
by the Code Authority to all other members of the Industry, who 
thereupon may file, if they so desire, revisions of their schedules to 
meet the revisions first filed, such revisions to become effective upon 
the date when the revised price list first filed shall become effective. 
All schedules so filed with the Code Authority shall be open to in- 
spection at all reasonable times by any interested party. 

G. No member of the industry shall permit his agent to sell ground 
feldspar products at other than the prices, terms, and conditions, 
filed by such member of the industry with the Code Authority in 
accordance with Section F. 

H. No member of the Industry shall make or permit to be made 
any secret payment or allowance of rebates, refunds, commissions, 
credits, or unearned discounts, whether in the form of money or 
otherwise, or any secret extension to certain purchasers, of special 
services or privileges not extended to all purchasers, on like terms 
and conditions. 

I. All quotations and contracts for the sale of any product of the 
industry by a member of the industry shall be in writing and shall 
contain a definite statement of price, tonnage, grade, terms of pay- 
ment, time and place of delivery, and all other items necessary to 
form a complete understanding. No contracts with individual con- 
sumers or jobbers shall be made for a period in excess of thirty (30) 
days or in excess of such longer periods as the Code Authority may 
from time to time approve. 

J. No member of the Industry shall sell any products of the 
Industry on consignment, except under circumstances and conditions 
approved by the Code Authority. 

K. The present capacity of the Industry is far in excess of the 
present or prospective needs. Therefore each member of the Indus- 
try shall register with the association the grinding capacity of its 
present grinding equipment. Prior to the installation of any new 
grinding equipment by persons engaged or engaging in the Feldspar 
Industry, except for the replacement of similar worn-out or obsolete 
grinding equipment, such persons shall report to the Code Authority. 
The Code Authority shall make such recommendations to the Ad- 
ministrator as may seem necessary to effectuate the policy of the 
National Industrial Recovery Act. 

Article VII — 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 National 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 mod- 
ify his approval of any provision of this Code or any conditions 
imposed by him upon his approval thereof. 

B. This Code may be amended upon the recommendation of the 
Code Authority or of any interested party or group, and any modi- 
fication so recommended or initiated shall be effective upon the 
approval thereof by the President after such notice and hearing as 
he may prescribe. 



163 
Article VIII 

No provision of this Code shall be so construed or applied as to 
permit or promote monopolies or monopolistic practices or to elimi- 
nate, oppress, or discriminate against small enterprises. 

Article IX 

Whereas the policy of the National Industrial Recovery Act to 
increase real purchasing power will be made impossible of consum- 
mation if prices of goods and services increase as rapidly as wages, it 
is recognized and understood that price increases will, so far as 
reasonably possible, be limited to actual increases in the seller's 
costs. 

Article X 

This Code shall become effective on the second Monday after 
approval thereof by the President. 



Approved Code No. 206. 
Registry No. 1012/1/02. 



o 



Approved Code No. 207 

CODE OF FAIR COMPETITION 

FOR THE 

BALL CLAY PRODUCTION INDUSTRY 

As Approved on January 16, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

BALL CLAY PRODUCTION INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Ball Clay Production Industry, and hear- 
ings having been duly held thereon and the annexed report on said 
Code, containing findings with respect thereto, having been made and 
directed to the President '. 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. C543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator far Industrial Recovery. 

Approval Recommended : 

Malcxdlm Mum, 

Division Admin istrator. 

Washington, D.C, 

Januamj 16^ 1034. 

32301° 313-53 34 (165) 



The President, 

The White Home. 

Sir : This is a report on the Code of Fair Competition for the Ball 
Clay Production Industry, a hearing on which was conducted in 
Washington on the twelfth of December 1933, in accordance with the 
provisions of the National Industrial Recovery Act, 

LABOR PROVISIONS OF CODE 

The Code provides for a maximum work day of 10 hours and a 
maximum work week of 40 hours, averaged over a six-months period, 
provided that no employee be permitted to work more than 48 hours 
in any one week. The following are excepted : 

(a) Employees in supervisory, outside sales or clerical capacities 
receiving $35.00 per week or more; 

(b) Emi3loyees engaged on emergency maintenance or emergency 
repair work and a limited number of employees (not exceeding 10% 
of the total number of employees in each plant) engaged in several 
special operations, all of whom shall be paid at least one and one- 
half times the normal rate of pay for time worked in excess of the 
maximum hours above specified. 

The Code provides for minimum rates of pay of $15.00 per week 
for office employees and of 371/2 cents per hour in the North and 30 
cents per hour in the South for other employees. To the extent 
practicable, wages above the minimum are to be equitably read- 
justed and in no case decreased. 

The employment of persons under 16 years of age and, in occupa- 
tions hazardous in nature or dangerous to health, of persons under 
18 years of age is prohibited. 

ECONOMIC EFFECTS OF THE CODE 

This is a very small industry, but one which is distinct and well 
organized. Employment in the industry has decreased from about 
400 workers in 1929 to about 260 at the present time. During the 
same period, volume of sales has decreased more than 70% and valud 
of sales more than 75%. 

The minimum wages provided for in the Code are more than 
100% higher than the minimum wages paid in August of this year, 
and are higher than those paid in the year 1929. It is believed that 
the Code will increase the total amount paid to labor by this industry 
at least 38%. 

The normal work week in this industry has been 60 hours and the 
restrictions on hours contained in the Code will undoubtedly increase 
employment. According to estimates by the industrv, the increase 
will be about 25%. 

(166) 



167 

FINDINGS 

Tlie Assistant Deputy Administrator in his final report to mo 
on said Code having found as herein set forth and on the basis of all 
the proceedings in this matter; 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agri- 
cultural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects w^ith the perti- 
nent provisions of said Title of said Act, including without limita-- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and' 
Subsection (b) of Section 10 thereof ; and that the applicant associa- 
tion is an industrial association truly representative of the aforesaid 
Industry; and that said association imposes no inequitable restric- 
tions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 

For these reasons, therefore, I have approved this Code. 
Respectfully, 

Hugh S. Johnson, 

A dminis trot or, 
January 1G, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

BALL CLAY PRODUCTION INDUSTRY 

Article I — Purposes 

To effectuate tlie policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code 
of Fair Competition for the Ball Clay Production Industry, and 
shall be binding upon every member thereof. 

Article II — Definitions 

The term " Industr}' " as used herein includes the aggregate of 
those operations of each producer necessary for the production and 
sale of clay by such producer where the essential recoverable prod- 
uct thereof is Ball Clay. 

The term '' Employee " as used herein includes anyone engaged 
in the industry in any capacity receiving compensation for his serv- 
ices, irrespective of the nature or method of payment of such com- 
pensation, except a member of the Industry. 

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

The term " Member of the Industry " includes any one engaged 
in the industry as above defined, either as an employer or on his 
own behalf, except that it shall not include contractors as herein 
defined. 

The term "Association " as used herein shall mean the United 
States Ball Clay Producers' Association. 

The term " Contractor " as used herein includes all those strip- 
ping or producing ball clay under contract for a member of the 
industry, either from mines owned by the contractor, or from mines 
owned b}- the member of the industry for whom such stripping or 
producing is done. 

The term " Southern Area " as used herein includes Virginia, 
Kentuckv. and all states south thereof and east of the Mississippi 
River and also tliat portion of the State of Missouri south of the 
37th parallel and east of the 91st meridian. 

The term " Northern Area " as used herein includes all the United 
States on the North American Continent except that part included 
in the Southern Area. 

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

(168) 



169 
Article III — ISIaximiim Hours 

Section 1. Except as provided in Sections 2 and 3 of this Article, 
no empkn^ee shall be permitted to work in excess of forty (40) hours 
per week avera<2;ed over a semiannual period either from January 1 
to June 30, or from July 1 to December 31, and the maximum hours 
of work for any employee during any one week shall not exceed 
forty-eight (48) ; no employee shall be permitted to work in excess 
of ten (10) hours in any twenty-four (24) hour period. 

Sec. 2. These limitations as to hours of labor shall not apply to 
persons employed in supervisory, outside sales, or clerical capacities 
receiving a fixed salar}^ at the rate of thirty-five ($35.00) dollars 
per week or more. 

Sec. 3. The maxinuun hours established in Section 1 of this Article 
shall not appl}- to any employee on emergency maintenance or emer- 
gency repair work involving breakdowns or protection of life or 
property ; nor shall they apply to a limited number of emploA^ees 
(not exceeding 10% of the total number of employees in each plant) 
engaged in the operating, maintenance, or firing of power shovels, 
and cranes, engaged in car loading and engaged in operations which 
must be performed before and after the regular working hours ; but 
in any such special cases, at least one and one-half times the normal 
rate of pay shall be paid for time worked in excess of the maximum 
hours herein established. 

Sec. 4. No employer shall knowingly engage any employee for any 
time Avhich, when totaled with that alread}- performed with another 
employer, or employers, exceeds the maxinmm hours permitted 
herein. 

Sec. 5. Anj^ employer wdio does the work of an employee shall be 
subject to the provisions of this Code as to hours of labor. 

Sec. 6. All wages shall be paid at least twice per month and all 
salaries at least once a montli, in lawful currency or negotiable 
check; these wages shall be exempt from any payments for pensions, 
insurance, or sick benefits other than those voluntarily paid by the 
wage earners or required by law. 

Article IV — Minimum W.ac.es 

Section 1. No employee in the Northern Area shall be paid at 
less than the rate of thirty-seven and one half (37%) cents per hour. 

Sec. 2. No employee in the Southern Area shall be paid at less 
tlian the rate of tliirty (30) cents per hour. 

Sec. 3. This Article establishes a mininmm rate of pay which 
shall apply irrespective of whether an employee is actually com- 
pensated on a time-rate, piecework, or other basis. 

Sec. 4. The wage differentials for those employees receiving 
wages above the minimum shall, to the extent practicable, be 
equitably readjusted, and in no case shall they be decreased. No 
unfair advantage shall be taken of any employee in making this 
Code effective. 

Sec. 5. No office or clerical employee shall be paid less than fifteen 
($15.00) dollars per week. 



170 
Article V — General Laeor Pr.ovisioxs 

Section 1. No person under sixteen (16) years of age shall be 
emploj^ed in the industry. No person under eighteen (18) years 
of age shall be employed in the industry at operations or occupa- 
tions which are hazardous in nature or dangerous to health. The 
Code Authority shall submit to the Administrator within one 
month after the effective date of this Code a list of such operations 
or occupations, if there be any such. 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. (a) 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 
employers of labor, or their agents, in the designation of such rep- 
resentatives, or in self-organization, or in other concerted activities 
for the purpose of collective bargaining or other mutual aid or 
protection. 

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

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

Sec. 3. No employer shall reclassify employees or duties of occu- 
patious performed or engage in any other subterfuge for the purpose 
of defeating the provisions of the Act or of this Code. 

Sec. 4. No member of the industry shall use a contractor for strip- 
ping or for the production of clay unless the contractor complies 
with all the labor provisions of this Code in regard to employees 
used in the production of such clay, and in such stripping opera- 
tions. For all other purposes of this Code, the employees of such 
contractors, used in the stripping or in the production of such clay, 
shall be treated and considered as employees of the member of the 
industry taking the clay produced by such contractor or for whom 
such strij)ping is done. 

Sec. 5. No provisions in this Code shall supersede any law within 
any State which imposes more stringent requirements on employers 
as to age of employees, wages, hours of work, or as to safety, health, 
or sanitary conditions, or insurance, or fire protection, or general 
working conditions, than are imposed by this Code. 

Sec. 6. All employers shall post complete copies of this Code in 
conspicuous places accessible to employees. 

Article VI — Organization, Powers, and Duties of the Code 

Authority 

Section 1. To further effectuate the policies of the Act, the Board 
of Directors of the Association is hereby constituted the Code 
Authority. 



171 

Sec. 2. The Code Authority shall consist of the same number of 
members as the Board of Directors of the Association (which shall 
be six (6) in number on the effective date of this Code), or such 
other number as may be approved from time to time by the Adminis- 
trator, to be selected as hereinafter ))rovided. The Administrator, 
in his discretion, may appoint not more than three (3) additional 
members without vote, to represent the Administrator, or such <2:roups 
or interests as may be agreed u]K)n, without expense to tlie industry. 

Sec. 3. Each member of the industry becominjLj a member of the 
Association, shall be entitled to elect one director of that Associa- 
tion, and that member shall ipso facto become a member of the Code 
Authority. 

Sec. 4. All those engaged in the industry may become members 
under and participate in the achuinistration of this Code by becom- 
ing members of the Association. Said Association shall (1) impose 
no inequitable restrictions on membership, and (2) submit to the 
Administrator true copies of its articles of association, bylaws, regu- 
lations, and any amendments when made thereto, together with such 
other information as to membership, organization, and activities as 
the Administrator may deem necessary to effectuate the purposes of 
the Act. 

Sec. 5. 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 i-epresentative or does not in other respects 
comply with the provisions of the Act, may i-equire an appropriate 
modification in the method of selection of the Code Authority, or 
any sub-Code Authority. 

Sec. 6. The Secretary and the Treasurer, respectively, of the 
Association shall act as such officers of the Code Authority. 

Sec. 7. The expenses of administering the Code shall be borne by 
the members of the Association. In addition to the dues collected 
by the xA^ssociation as such, the Code Authorit}^ may from time to 
time make such assessments on account of such exj^enses against the 
members of the Association as it shall deem proper, and such assess- 
ments, subject to review and modification of the Administrator, shall 
be equally divided between and be borne by the members of the As- 
sociation, and shall be payable as the Code Authority may specifJ^ 
Failure of any member of the Association to paj^ the amount of any 
assessment against such member for a period of thirty (30) days 
after the date on which it became payable shall constitute a violation 
<^'f the Code. 

3ec. 8. 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 or modify any action taken 
by the Code Authority : 

(a) From time to time, to appoint and remove, and to fix the com- 
pensation of all such other officers, agents, employees, accountants, 
attorneys, and experts as the Code Authority shall deem necessary 
for the purpose of administering the Code; 

(b) To receive complaints of violations of this Code, make in- 
vestigations thereof, provide hearings thereon and adjust such com- 



172 

plaints and bring to the attention of the Administrator for prosecu- 
tion, recommendations, and other action relative to unadjusted 
violations ; 

(c) To coordinate the administration of this Code with such other 
Codes, if any, as may be related to the industry, and to delegate to 
any other administrative authority, with the approval of the Admin- 
istrator, such powers as will promote joint and harmonious action 
upon matters of common interest ; 

(d) To initiate, consider, and make recommendations for the modi- 
fication or amendment of this Code; 

(e) To obtain from members of the industry such reports and 
such other information as may be necessary or convenient for the 
use of the Code Authority and the Administrator in the administra- 
tion and enforcement of the Code and to give assistance to members 
of the industry in improving methods, or in prescribing, Avith the 
approval of the Administrator, a uniform system of accounting and 
reporting. In addition to the information otherwise provided for 
in this Code 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 Sec- 
tion 3 (a) of the National Industrial Recovery Act; provided that 
nothing in this Code shall relieve any member of the Industry of any 
existing obligations to furnish reports to any Government agency. 

Sec. 9. Nothing contained in this Code shall constitute the mem- 
bers of the Code Authority partners for any purpose ; nor shall any 
member of the Code Authority be liable in any manner to anyone 
for any act of any other member, officer, agent, or employee of the 
Code Authority; nor shall any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties as such 
member, be liable to anyone for any action or omission to act, except 
for his own nonfeasance of malfeasance. 

Article VII — Trade Practices 

Section 1. Nothing in this Code shall limit the effect of any adju- 
dication by the courts or holding by the Federal Trade Commission, 
on complaint, finding, and order, that any practices or methods are 
unfair, provided that such adjudication or holding is not inconsistent 
with any provision of the Act or of this Code. 

Sec. 2. In the event any specific trade practice rules hereafter be- 
come necessary they may, upon recommendation to and approval 
thereof by the Administrator, be made a part of tliis Code in the 
manner hereinafter provided for amendments to this Code. 

Sec. 3. A violation by any member of the industry of any provi- 
sion of this Article or the engaging in any practice hereafter de- 
clared by the Code Authority, with the approval of the President, to 
be an unfair trade practice, shall be a violation of this Code. 

Article VIII — 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 



173 

Recover}' Act, from time to time to cancel ov modify any order, ap- 
proval, license, rule, or re<>ulation issued under Title I of said Act 
and specifically .but without limitation, to the right of the President 
to cancel or modify his approval of this Code or any conditions im- 
posed by him upon his approval thereof. 

Sec. 2. This Code, except as to provisions required by the Act, 
may be modified or amended on the basis of experience or changes 
in circumstances, such modification or amendment to be based upon 
application to the Administrator and such notice and hearing as he 
shall s])ecify. and to become effective on ai)proval of the President. 

Article IX — Monopolies 

No provision of this Code shall be so applied as to permit monopo- 
lies or monopolistic practices, or to eliminate, oppress, or discrimi- 
nate against small enterprises. 

Article X — Prick Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made impossible of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price in- 
creases except such as may be required to meet individual cost should 
be delayed. But when made such increases should, so far as possible, 
be limited to actual additional increases in the seller's costs. 

Article XI — Effective Date 

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



Apprtivea Code Xo. 207, 
Registry No. 10i:',-04. 



o 



Approved Code No. 208 
CODE OF FAIR COMPETITION 

FOR THE 

PICTURE MOULDING AND PICTURE FRAME 

INDUSTRY 

As Approved on January 16, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

PICTURE MOULDING AND PICTURE FRAME 

INDUSTRY 

An application having been duly made pursuant to and in fuU 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Picture Moulding and Picture Frame In- 
dustry, and hearings having been duly held thereon and the annexed 
report on said Code, containing findings with respect thereto, having 
been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to autliority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act ; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Adviinistrator for Industrial Recovery, 

Approval recommended : 

Malcolm Muhj, 

Division Administrator. 
"Washington, D.C, 

January 16, 193 J^. 

30481° 313-9 34 (175) 



The President, 

The White House. 

Sik: This is a report on the Code of Fair Competition for the 
Picture Moulding and Picture Frame Industry in the United States, 
as revised after a hearing conducted in Washington on November 24, 
1933, in accordance with the provisions of the National Industrial 
Recovery Act. 

PROVISIONS FOR HOURS AND WAGES 

The maximum hours of labor provided in this Code are 40 hours 
per week with the following exceptions : Executive and Supervisors 
receiving $35 or more per week do not have any limitation of hours. 
Watchmen are not permitted to work more than 56 hours, nor more 
than 6 days, in any one week. Cleaners, mechanics, engineers, fire- 
men, outside crews and outside delivery men, not to exceed ten per- 
cent of the employees of any one plant, are allowed a tolerance of 8 
hours per week and are to be compensated at one and one third their 
normal rate of pay for hours worked in excess of 40 hours in any 
week. Emergency repair and maintenance work is unrestricted but 
also shall be compensated at one and one third the normal rate of 
pay for hours worked in excess of 40 hours in any one week or in 
excess of 8 hours in any one day. As the industry is largely a manu- 
facture-on-order industry, an 8-hour tolerance per week is allowed on 
hours, providing the weekly average in each 4-week period does not 
exceed 40 hours. Hours in addition to the 40-hour average (but not 
exceeding 48 hours in any one week) are allowed during the peak 
season, if employees are compensated at the rate of one and one third 
times their normal rate of such additional hours worked. Office and 
clerical employees are not permitted to work more than 40 hours per 
week averaged over any 4- week period nor in excess of 48 hours in 
any one week. 

The minimum wage rate provided for employees is 321/^ cents per 
hour in the North and 10 percent less in the South. Learners, not 
to exceed 5 percent of the employees of any plant and for a period of 
one month, and messengers and office girls between 16 and 18 years 
of age, also not to exceed 5 percent of the employees, may be com- 
pensated at 80 percent of the minimum wage provided. Female 
workers shall receive the same rate of pay as male workers for sub- 
stantially the same work. Handicapped persons may be employed at 
suitable work upon certification of the State Authority designated by 
the United States Department of Labor. One year from the effective 
date of this Code the minimum wage is to be increased to 37i/2 cents 
per hour unless ad^qua^e reasons for not doing so are presented to 
the Administration at a public hearing requested by the Code 
Authority for this purpose. 

(176) 



177 



CHILD LABOR 

The minimum age limit is IG years, except in hazardous positions 
where the minimum age limit shall be 18 years. 

ECONOMIC EFFECT OF THE CODE 

From the data available, the representative of the Planning and 
Research Division has estimated maximum hour provisions of this 
Code would increase employment in this industry approximately 
25 percent over that of June 1933; and that the wage provisions 
though comparatively low are a substantial increase over those prior 
to the President's Reemployment Agreement. An increase in the 
minimum wage from 32^/^ cents per hour to 37^ cents per hour 
is provided after this Code has been in effect one year, in the belief 
that the industry will then be better able to provide this more 
adequate wage for its employees. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter: 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
plo3''ees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant group 
is an industrial group truly representative of the aforesaid Industry ; 
and that said group imposes no inequitable restrictions on admission 
to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 



178 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said 
Code. 

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Achninistrator. 
Washington, D.C, 

January 16, 193^. 



CODE OF FAIR COMPETITION 

FOR THE 

PICTURE MOULDING AND PICTURE FRAME INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Recov- 
ery Act this Code is submitted as a Code of Fair Competition for the 
Picture Moulding and Picture Frame Industry, and upon approval 
by the President its provisions shall be the standards of fair compe- 
tition for such industry and shall be binding upon every member 
thereof. 

Article II — Definitions 

Section 1. Picture Moulding and Picture Frame Industnj. — The 
Picture Moulding and Picture Frame Industry, hereinafter termed 
" the industry ", means the manufacture and/or sale by the manu- 
facturers of picture-frame mouldings, including plain, ornamented, 
embossed, carved, or composition, whitened, veneer covered, metal, 
finished and unfinished, and all picture frames, including mirror 
frames, photo frames, painting frames, advertising frames, metal 
frames, picture placques, leather and leatherette frames, both empty 
and fitted and irrespective of the materials used in the production 
thereof, and wooden trays and art novelties made in picture-frame 
factories of similar materials and by similar processes to those used 
in the manufacture of picture frames ; but excluding custom picture- 
framing from finished mouldings made to order for specific pictures 
delivered by retail customers for framing to the picture and frame 
departments of stores operating under the Code of Fair Competition 
for the Retail "Trade." 

Sec. 2. Division. — The term " Division " of the industry as used 
herein shall mean the several branches of the industry which have 
been or may hereafter be established by the Code Authority. The 
divisions immediately hereby established are as follows: 

1. Raw Moulding. 

2. Finished Moulding. 

3. Empty Picture Frame. 

4. Fitted Picture Frame. 

5. Metal Moulding and Metal Frame. 

Sec. 3. Divisional Agency. — The term " Divisional Agency " shall 
mean the executive agency of any Division of the industry selected 
by members of the Division by methods of selection prescribed by 
the Code Authorit}'. 

(179) 



180 

Sec. 4. Members of the Industin/. — The term " Member of the In- 
dustry " inchides, but without limitation, any individual or enter- 
prise enpjaged in the industry, either as an employer or on his or 
its own behalf. 

Sec. 5. Member of Division. — The term " Member of the Division " 
shall mean any member of the industry as classified in any division 
of the industry now or hereafter estalDlished. 

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

Sec. 7. Act and Adiriinistrator. — The terms "Act " and "Admin- 
istrator " as used herein shall mean, respectively, Title I of the Na- 
tional Industrial Recovery Act, and the Administrator of said Act. 

Sec. 8. Pojmlation. — Population for the purposes of this Code 
shall be determined by reference to the latest Federal Census. 

Sec. 9, Association. — The term " Association " as used herein 
means The Picture Moulding and Frame Manufacturers Association, 
Incorporated, under the laws of the State of Illinois, not for profit. 

Article III — Hours 

Section 1. Maximum Hours. — No employee shall be permitted to 
work in excess of forty (40) hours in any one week or eight (8) 
hours in any twenty-four (24) hour period, except as hereinafter 
otherwise provided. 

EXCEPTIONS 

Sec. 2. Executive^ Super visory .^ or Administrative Employees. — 
The maximum hours prescribed in Section 1 of this Article shall not 
apply to executive, supervisory, or administrative emploj'^ees receiv- 
ing thirty-five (35) dollars or more in any one week, nor to outside 
salesmen, provided, however, that the -exemption contained in this 
section shall not apply to foremen engaged in machine operations. 

Sec. 3. W atchmen. — The maximum hours prescribed in Section 
1 of this Article shall not apply to watchmen, provided, however, 
that watchmen shall not be permitted to work in excess of fifty-six 
(56) hours in any one week nor more than six (6) days in any one 
week. 

Sec. 4. Outside Deliverymen., Firemen^ Mechanics., Engineers., 
Cleaners., and Outside Crews. — The maximum hours prescribed in 
Section 1 of this Article shall not apply to outside deliverymen, fire- 
men, mechanics, engineers, cleaners, and outside crews, provided, 
however, that the total number of such employees engaged by any 
member of the industry shall not exceed ten percent of the total 
number of employees engaged by such member of the industry at 
any one time, and provided, further, that such employees shall be 
paid not less than one and one third times their normal rate of pay 
for all hours worked in excess of forty (40) hours in any one week, 
nor shall such employees be permitted to work more than forty- 
eight (48) hours in any one week. 

Sec. 5. Emergencies. — The maximum hours prescribed in Section 1 
of this Article shall not apply to emergency maintenance or emer- 
gency repair work, provided, however, that any employees engaged 



181 

in any such emergency maintenance or emergency repair work, shall 
bo paid at not less than one and one third times their normal rate of 
pay for all hours worked in excess of forty (40) hours in any one 
week, or in excess of eight (8) hours in any one day. 

Sec. 6. Peak Seasons. — The maximum hours prescribed in Section 
1 of this Article shall not apply in case of seasonal or peak opera- 
tions, provided, however, that no employee engaged in such opera- 
tions shall be permitted to work in excess of forty-eight (48) hours 
in any one week or in excess of forty (40) hours per week averaged 
over a four (4) consecutive week period except as hereinafter pro- 
vided. Employees may be permitted to work in excess of the forty 
(40) hour average over a four (4) week period (but not in excess 
of forty-eight (48) hours in any one week) provided that employees 
shall be paid at least one and one third times their normal wage rate 
for all hours worked in any one week in excess of the forty (40) 
hour average period provided herein or for hours worked in excess 
of eight (8) in any one day. 

Sec. 7. Office Employees. — Clerical and office employees other than 
administrative, su])ervisory, or executive employees exempted pur- 
suant to the provisions of Section 2 of this Article, shall not be 
permitted to Avork in excess of forty (40) hours per week averaged 
over any four (4) consecutive weeks nor in excess of forty-eight (48) 
hours in any one week. 

Sec. 8. Dual Employment. — No employer shall knowingly engage 
any employee for any time which, when totaled witli that already 
performed with another employer or employers in this industry, 
exceeds the maximum hours prescribed in this Article. 

Sec. 9. One Oicner in Partnership Exempted. — Where a member 
of this industry is a partnership, association, or trust, which con- 
sists of more than one person, not more than one individual of such 
partnership, association, or trust shall vrork as an operator in ex- 
cess of the maximum hours of labor as hereinbefore provided. 

Akticle IV — Wages 

Section 1. Minimum Wages. — No employee shall be paid in any 
pay period less than at the rate of thirty-two and one half (3214) 
cents per hour, except as herein otherwise provided. 

Sec. 2. Increase of Minimum Wage after One Year. — One year 
from the effective date of this Code the minimum wage hereunder 
shall be increased to thirty-seven and one half (37l^) cents, subject 
however, to the right of the Code Authority at its election and prior 
to said date of effective increased minimum wage to request a hear- 
ing before the Administrator to show cause why said increase or any 
part thereof should not become effective. 

Sec. 3. Wage Differential in South. — The minimum wage in the 
States of South Carolina, Georgia, Florida, Alabama, Mississippi, 
Louisiana, and Texas, shall be ninety (90) percent of the minimum 
wages set forth in Sections 1 and 2 of this Article. 

Sec. 4. Piece Worh and Minimum Wage. — This Article establishes 
a minimum rate of pay which shall apply irrespective of whether an 
employee is actually compensated on a time rate, piecework, or 
other basis. 

aOJSl" 313-9 34 2 



182 

Sec. 5. Learners. — Persons learning an occupation shall be paid 
not less than eighty (80) percent of the minimum wages prescribed 
in Section 1 of this Article providing that the nmnber of such 
learners shall not exceed five percent of the total number of em- 
ployees of any one emploj^er at any time and that the learners shall 
not be compensated at less than the minimum rate for a total period 
in excess of one month whether employed by one or more employers. 

Sec. 6. 0-j^ce Boys and Messengers. — The minimum rates pre- 
scribed in Section 1 of this Article shall not apply to messengers, 
office boys, or office girls under the age of eighteen (18) years, pro- 
vided, however, that such employees shall be paid not less than 
eighty (80) percent of the minimum wage prescribed herein. The 
number of such employees shall not exceed five (5) percent of the 
total number of employees of any one employer at any one time. 

Sec. 7. Adpistment of Wages. — No employee receiving in excess 
of the minimum wage rate in June 1933 shall have his rate of wages 
decreased below his rate on that date. Wages in excess of the mini- 
mum shall be adjusted on a fair and equitable basis, said adjustments 
to be reported to the Code Authority and the Administrator for 
approval. 

Sec. 8. Female Employees. — Female employee's performing sub- 
stantially the same work as male employees shall receive the same 
rates of pay as male employees. 

Sec. 9. 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 minimmn established by 
this Code if the employer obtains from the State authority desig- 
nated by the United States Department of Labor a certificate 
authorizing his employment at such wages and for such hours as 
shall be stated in the certificate. Each employer shall file with the 
Code Authority a list of all such persons employed by him. 

Sec. 10, Accounting .f Clerical., or Office Employees. — Accounting, 
clerical, or office employees shall not bo paid less than the rate of 
$15.00 per week in any city of 500,000 population or over, or in the 
immediate trade area of such city, and not less than $14.50 per week 
in any city between 100,000 and 500,000 population or in the immedi- 
ate trade area of such city, and not less than $14.00 per week in any 
city between 10,000 and 100,000 or in the immediate trade area of 
such city, and not less than $12.00 per week in any city under 
10,000 population. Population for the purposes of this Code shall 
be determined by the 1930 Federal Census. 

Article V — General Labor Provisions 

Section 1. Child Lahor Prohihited. — 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 before Janu- 
ary 31, 1934, a list of such operations or occupations. In any State 
an employer shall be deemed to have complied with this provision 



183 

as to af^e 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. 

Sec. 2. Employees' Right to Organkc. — In compliance with Sec- 
tion 7 (a) of the xVct, it is provided that: 

(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 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 approved 
or prescribed by the President. 

Sec. 3. State Lairs Prevail Where More Stringent Than Code. — 
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. 4. Posting Code. — All emploj^ers shall post complete copies 
of this Code in conspicuous places accessible to employees. 

Sec. 5. Rec-lassifying Employees. — No emploj^er shall reclassify 
employees or duties of occupations performed for the purpose of 
defeating the purpose or provisions of the Act or of this Code. 

Sec. G. Safety and Health. — Every employer shall make reason- 
able provision for the safety and health of his employees at the 
place and during the hours of their employment. Standards for 
safety and health shall be submitted by the Code Authority to the 
Administrator for approval within six months after the effective 
date of this Code. 

Sec. 7. Contracted Work. — No employer shall avoid or evade the 
labor provisions of this Code by contracting his work to any person 
subject to labor reirulations less stringent than those provided in this 
Code. 

Sec. 8. Prohibited Home Work. — No member of the industry shall 
permit any work in the industry to be performed in the home of any 
Vt'orker. 

Sec. 9. Payment of Wages. — An emplo5^er shall make payment of 
all wages due in lawful currency, or by negotiable check therefor pay- 
ment on demand. These wages shall be exempt from any payments 
for premiums, insurance, or sick benefits other than those voluntarily 
paid by the wage earners, or required by State laws. All employ- 
ment agreements shall require that wages be paid at least at the end 
of every two weeks' period, salaries at least at the end of every month, 
and that no employer shall withhold wages due any employee. 



184 

Article VI — Organization, Powers, and Duties of the Code 
Authority, Organization, and Constitution 

Section 1. Code Authority. — A Code Authority is hereby consti- 
tuted to cooperate with the Administrator in the administration of 
this Code. 

Sec. 2. How Com/posed. — The Code Authority shall consist of not 
less than ten (10) members of the industry complying with the pro- 
visions of Section 8 of this Article, to be selected as follows : Ten (10) 
members of the Code Authority may be selected by the members of 
the Association, not more than two (2) being selected by each of the 
five (5) Divisions by the members thereof. Not less than one (1) 
member of the Code Authority shall be a nonmember of the Asso- 
ciation, if there be any such members of the industry and shall be 
selected by such nonmembers, complying with the provisions of 
Section 8 of this Article, by personal vote or by proxy at an election 
conducted by the Association. 

Sec. 3. Provisions for Alternates. — Each Division may select an 
alternate for each of its members of the Code Authority. Should 
any matter come before the Authority which specifically involves 
acts, conduct, or the interests of a company with which any member 
of the Code Authority is associated or employed, such member shall 
be disqualified to act in such matter and a designated alternate may 
act in such disqualified member's place. 

Sec. 4. Trade Assoeiation Shall Conduct Election. — The Asso- 
ciation is hereby designated as the agency to conduct an election of 
the members of the Code Authority within twenty (20) days after 
the effective date of this Code, and any other elections of members 
of the Code Authority which may thereafter be held. Members of 
the Code Authority shall be elected to serve for a term of one (1) 
year or until their successors are elected at the next annual meeting 
of the industry. In the event of any vacancy in the membership of 
the Code Authority, a special meeting of the members of the indus- 
try for an election to fill the incomplete terms of such members shall 
be called. Notice of each election shall be sent to all members of the 
industry at least ten (10) days in advance of such election, and vot- 
ing at such election may be by person, by proxy, or by letter ballot. 

Sec. 5. Members Appointed hy the Adniinistrator. — In addition to 
membership as above provided, there may be three (3) members, 
without vote, to be appointed by the Administrator, to serve for 
terms of from six (6) to twelve (12) months from the date of ap- 
pointment as the Administrator may designate. Such members shall 
be given notice of and may sit at all meetings of the Code Authority. 

Sec. 6. Trade Association Regivlutions. — Each trade or industrial 
association or Division directly or indirectly participating in the se- 
lection or activities of the Code Authority shall (1) impose no in- 
equitable restrictions on membership, and (2) submit to the Adminis- 
trator 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 effect the purposes of the Act. 

Sec. 7. Code Authority Must he Representative. — In order that the 
Code Authority shall at all times be truly representative of the in- 



185 

dustry and in other respects comply with the provisions of the Act, 
the Administrator may prescribe such hearings as he may deem 
proper; and thereafter if he shall find that the Code Authority is 
not truly representative or does not in other respects comply with 
the provisions of the Act, may require an appropriate modification 
in the method of selection of the Code Authority. 

Sec. 8. Expenses of Code Authority. — 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. Those who participate in or 
accept the benefits of the activities of the Code Authority or their 
respective Divisional Agency shall pay their reasonable share of 
the cost of the Administration of this Code. Such reasonable share 
of the expenses of administration shall be determined by the Code 
Authority, subject to review by the Administrator, on the basis of 
volume of business and/or such other factors as may be deemed 
equitable. 

Sec. 9. Members of Code AuthoHty not Partners. — Nothing con- 
tained 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 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, exercis- 
ing 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. 

Sec. 10. Powers and Duties of Code Authority. — The Code Au- 
thority 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 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 Title I 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 individual 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 and except to such impartial 
agency as may be necessary to facilitate the administration of this 
Code. 



186 

(d) To use such, trade associations and other agencies as it deems 
proper, for the carrying out of any of its activities provided for 
Lerein, 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- 
ordination 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 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 
Lave 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) The Code Authority may appoint such committees or agents 
as it may deem necessary and may delegate to them or to any Divi- 
sional Agency or Divisional Code Authority such of its powers or 
duties as it may deem proper for the administration of this Code; 
provided, however, that it shall reserve final responsibility as to any 
powers or duties so delegated. 

(j) Divisional agencies or Divisional Code Authorities provided 
for herein may make such rules and regulations as may be necessary 
to administer this Code in their respective Divisions. Any rules and 
regulations made pursuant to the provisions of this section shall be 
immediately submitted in duplicate to the Authority, which shall 
promptly transmit one copy thereof to the Administrator for his 
review or disapproval. 

(k) In order to assist in eliminating unfair competition, the Code 
Authority may establish classifications and quality standards for the 
products manufactured and sold by each Division subject to the ap- 
proval of the Division concerned. No member of the industry shall 
falsely represent his product as complying with any standards or 
classifications so established. Such classifications and quality stand- 
ards shall be subject on review to disapproval by the Administrator. 

(1) To employ a Secretary -Accountant who shall be the Execu- 
tive Officer of the Code Authority and who shall not be in any way 
affiliated with any member of the industry. 

Sec. 10. Industrial Relations Board. — To recommend to the Ad- 
ministrator the establishment of an Industrial Relations Board for 
this industry. 

Sec. 11. Metal Moulding and Metal Frame Division. — Division 6, 
Metal Moulding and Metal Frame, may adopt, subject to the ap- 
proval of the Administrator, a Supplementary Code for such Divi- 
sion, provided that such Supplementary Code shall not be incon- 
sistent with or contrary to the provisions of this Code of the In- 
dustry. Such Supplementary Code, when approved by the Presi- 



187 

dent, shall have the same force and effect in the Metal Moulding and 
Metal Frame Division as this Code. Such Supplementary Code 
may provide for a Divisional Code Authority, which shall have 
direct access and appeal at all times to the Administrator. 

Aeticle YII — Publicity of Prices, Terms and Conditions of Sale 

Section 1. Cost Accounting System for Each Division. — Pur- 
suant to the provisions of Article VI, each Division of the industry 
shall formulate or cause to be formulated standard methods or sys- 
tems of cost accounting for use in such Division of the Industry, 
which methods or systems shall be adaptable to the cost-accounting 
procedure of and to the business of such Division of the Industry, 
and shall be subject to the approval of the Code Authority. Such 
methods or systems shall specify the factors that shall determine 
the cost for each member of such Division 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 such Division of the Industry complete details 
of such methods or systems. Thereafter, in determining its costs, 
each member of the industry shall use the principles of such 
cost-accounting system recommended by such divisions and approved 
by the Code Authority and the Administrator. 

Sec. 2. Selling Below Cost. — No member of the industry shall 
publish prices or sell any article, including surplus stocks, below his 
cost of production except (a) to meet the competition of a lower- 
cost producer and (b) as may be specifically, authorized by the Code 
Authority regarding dropped lines and close outs. 

Sec. 3. Filing Individual Overhead Costs. — Each member of the 
industrv shall within ten (10) days of the effective date of this 
Code, file with the Secretary-Accountant a statement of the per- 
centage to be added to his direct raw material and direct labor costs, 
the total of which is commonly called Bench Cost, to cover his 
entire individual overhead. This overhead percentage may be dif- 
ferent for different classifications of products of the members, pro- 
vided that not more than four classifications be used, unless 
otherwise authorized by the Code Authority. The percentages filed 
shall be based on the actual costs of the individual member, and, 
after the adoption of the cost system which may be prescribed by 
the respective Divisions as set forth in Section 1 of this Article, 
shall be in accord with such cost system. 

Sec. 4. Price Lists to he Filed with Code Authority. — Within ten 
(10) days after the effective date of this Code each member of the 
industry shall file with the Secretary-Accountant of the Code Au- 
thority his list prices and maximum discounts applying thereto and 
the terms and conditions of sale on all his products. Such lists so 
filed and any revisions thereof subsequently filed shall be available 
to each class of purchasing trade, namely, manufacturers who are 
customers of another manufacturer, wholesalers, and retailers to 
which such list prices, maximum discounts, terms, and conditions 
apply. 

Sec. 5. List Prices May he Changed. — In the event of any change 
by any member of the industry in any list price and maximum. 



188 

discounts, terms, or conditions of sale applying thereto, lie shall 
file full and complete copies of every such change with the Secretary- 
Accountant of the Code Authority within such periods as may have 
been designated by the Code Authority but not exceeding ten (10) 
days in advance of the effective date of any such change. 

Sec. 6. Unlisted Discounts Not AUoived. — No member of the in- 
dustry shall sell, pay a rebate, or allow a deduction at any time to 
anyone except in accordance with his list prices and maximum dis- 
counts applying thereto, terms, and conditions of sale then in effect 
and published in the manner described herein. Each member of 
the industry shall have the right, individually, to publish new list 
prices and maximum discounts applying thereto, terms, and condi- 
tions of sale from time to time as herein provided. 

Article VIII — Trade Practice Rules 

GENERAL DEFINITIONS 

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 oflficer, 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. iTiaccurate Advertising. — 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 par- 
ticular or in any way misrepresents any commodity (including its 
use, trade mark, grade, quality, quantity, origin, size, material con- 
tent, or preparation), or credit terms, value, policies, services, or the 
nature or form of the business conducted. 

Rule 2. " Bait " Advertising. — No member of the Industry shall 
knowingly publish advertising or use selling methods or credit terms 
which tend to deceive or mislead the customer or prospective customer. 

Rule 3. False Billing. — No member of the Industry shall know- 
ingly withhold from or insert in, any quotation, contract, or invoice 
any statement that makes it inaccurate in any material particular. 

Rule 4. Inaccurate Labeling. — No member of the Industry shall 
brand or mark or pack any commodity in any manner which tends 
to deceive or mislead purchasers with respect to the brand, grade, 
quality, quantity, origin, size, material content, or preparation of 
such commodity. 

Rule 5. Inaccurate Reference to Com'petltors, Etc. — No member of 
the Industry shall publish advertising which intentionally refers 
inaccurately in any material particular to any competitors or their 
commodities, prices, values, credit terms, policies, or services. 

Rule 6. Threats of Lawsuits. — No member of the Industry shall 
publish or circularize unjustified or unwarranted threats of legal 
proceedings which tend to or have the effect of harassing competitors 
or intimidating their customers, and failure to prosecute diligently 
shall be evidence of such harassment or intimidation. 

Rule 7. Secret and Discriminatory Rebates. — No member of the 
Industry shall offer or make any secret or discriminatory payment 
or allowances of a rebate, refund, commission, credit, unearned dis- 



189 

count, or excess allowance, whether in the form of money or other- 
wise, for the purpose of influencing a sale, nor shall a member extend 
to any customer any secret or discriminatory special service or priv- 
ilege not extended to all customers of the same class. 

Rdtji 8. Giving Gratuities or Rewards to Employees. — ~Eq member 
of the Industry shall give, permit to be given, or offer to give any- 
thing of value for the purpose of influencing or rewarding the a-ction 
of any employee or agent of another in relation to the business of 
the employer of such employee or the principal of such agent with 
or without knowledge of such employer or principal, provided that 
nothing herein shall prohibit the free and general distribution of 
articles used solely for advertising. 

Rtjle 9. Interference with An/)t7ier''s Contracts. — ^N^o member of the 
Industry shall induce or attempt to induce the breach of an existing 
contract between a competitor and his employee or customer or source 
of supply ; nor shall any such member interfere with or obstruct the 
performance of such contractual duties or services. 

Rule 10. Shipment of CoTnmodities on Consignment. — ^o member 
of the Industry shall ship commodities on consignment, except under 
circumstances and conditions approved by the Code Authority. 

Article IX — Complatnts and Apfeai^s 

Section 1. Right of Appeal to Divisions. — Any interested party 
shall have the right of complaint to any Divisional Agency and 
prompt hearing and decision therein with respect to any action by 
it under this Code under such rules and regulations as it may 
prescribe. 

Sec. 2. Method of Appeal to Authority. — Any interested party 
shall have the right to appeal to the Code Authority from any de- 
cision of a Divisional Agency under such procedure as the Code 
Authority shall prescribe. 

Sec. 3. Right of Complaint to Authority. — Any interested party 
shall have the right of complaint to the Code Authority and prompt 
hearing and decision thereon under such procedure as it shall pre- 
scribe in respect to any rule, regulation, order, or finding made, or 
course of action pursued by the Code Authority. 

Sec. 4. Right of Appeal to Administrator. — Any interested party 
shall have the right of appeal to the Administrator under such pro- 
cedure as he shall prescribe in respect to any decision, rule, regula- 
tion, order, or finding made, or course of action pursued by any 
agency pursuant to this Code. 

Article X — Monopolies 

No provisions of this Code shall be interpreted or applied in such 
manner as to promote or permit monopolies or monopolistic prac- 
tices or to eliminate, oppress, or discriminate against small enter- 
prises. 

Article XI — Modifications 

Section 1. President May Modify Code. — This Code and all the 
provisions thereof are expressly made subject to the right of the 



190 

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 regu- 
lation 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 
ajDproval thereof. 

Sec. 2. Amendment of Code. — 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 ap- 
plication to the Administrator and after such notice and hearing as 
he shall specify, shall become ejffective on approval of the President. 

Article XII — Effective Date and Termination 

This Code shall become effective on the second Monday after it 
shall have been approved by the President. It shall continue in 
effect until June 16, 1935, or until such time prior thereto as the 
President, by proclamation, or the Congress shall by joint resolu- 
tion, declare that the emergency recognized by Section 1 of the 
National Recovery Act has ended. 



Approved Code No. 208. 
Registry No. 1122-09. 



o 



Approved Code No. 209 
CODE OF FAIR COMPETITION 

FOR THE 

MUSICAL MERCHANDISE MANUFACTURING 

INDUSTRY 

As Approved on January 16, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

MUSICAL MERCHANDISE MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Musical Merchandise Manufacturing In- 
dustry, and hearings having been duly held thereon and the annexed 
report on said Code, containing findings with respect thereto, having 
been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the i>ertinent provisions and will promote the policy and pur- 
poses of said Title of said Act ; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
AdminhtTatoT for Industrial Recovery. 

Approval Recommended : 
George L. Beery, 

Division Administrator. 

Washington, D.C, 

January 16^ 139J^. 

32302° 313-56^ 34 (191) 



The President, 

The White House. 

Sir : A Public Hearing on the Code of Fair Competition for the 
Musical Merchandise Manufacturing Industry, submitted by the 
National Association of Musical Merchandise Manufacturers, located 
at 45 West 45th Street, New York, N.Y., was conducted in Washing- 
ton on the 15th of November 1933 in accordance with the provisions 
of the National Industrial Recovery Act. The Association claims 
to represent eighty (80%) percent of the Industry. 

The maximum hours permitted under this Code are- forty (40) 
hours per week, averaged over a four (4) weeks' period; provided, 
however, that such employees shall not be employed more than forty- 
eight (48) hours in any one (1) week; and provided further that 
such employees may be permitted to work a total of not to exceed 
eighty (80) additional hours during any twelve (12) months' period. 
For clerical or office employees a maximum of forty (40) hours 
per week is provided, except that at inventory periods, such em- 
ployees may work a maximum of forty-eight (48) hours per week 
for a total of not to exceed three (3) weeks in each six (6) months' 
period. However, overtime at the rate of time and one third is 
provided for all hours per week over forty (40). 

The minimum wage scale for male employees is thirty-five (35^) 
cents per hour. The minimum wage for female employees is thirty- 
two (32^*) cents per hour, and for clerical or office employees a 
minimum wage of fifteen ($15.00) dollars per week is provided, 
except that office boys and office girls who are between the ages of 
sixteen (16) and eighteen (18) years may be employed at a rate not 
less than eighty percent (80%) of such minimum wage and are to 
be limited to one (1) in number or five percent (5%) of the total 
number of clerical and office employees employed by any member 
of the Industry. 

Because of the fact that a musical instrument is not classed as a 
necessity of life, but is a commodity which supplies a cultural want 
of mankind, it is not purchased until the more vital needs have been 
supplied. Not until prosperity has become well established will this 
Industry experience a real upturn in business, with the resultant 
reemployment of a substantial number of employees. Based on 
information furnished by this Industry, wage-earner employment 
declined 33.3 percent from 1928 to 1932. 

On the basis of a 40-hour week, 160 wage earners should benefit 
through reemployment, bringing the total number of wage earners 
to 960. 

The total value of products for the year 1928 was $3,160,000. 
Since then the value of products has gradually decreased from year 
to year until during 1932 it amounted to only $1,228,000 or 61.1 per- 
cent under the 1928 total. The percentage of decrease of each suc- 
ceeding year including 1932 under the 1928 total was 22.9, 26.3, 
38.4, and 61.1, respectively. 

(192) 



J 



193 

Even though 1928 was a peak year, the establishments actually 
were then operating at 79 percent of their capacity. While the 
capacity has remained almost the same for each year since 1928, 
having declined only 12.5 percent, production has declined 61.1 
percent. 

Findings 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the pro- 
ceedings in this matter; 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practices, by promoting the fullest pos- 
sible utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees, and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsec- 
tion (b) of Section 10 thereof; and that the applicant association is 
an industrial association truly representative of the aforesaid Indus- 
try; and that said association imposes no inequitable restrictions on 
admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies or 
monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 

This Industry has cooperated in a mo^t satisfactory manner with 
the Administrator in the preparation of this Code. From evidence 
adduced during this hearing and from recommendations and reports 
of the various Advisory Boards it is believed that this Code as now 
proposed and revised represents an effective, practical, equitable solu- 
tion for this Industry, and for these reasons this Code has been 
approved. 

Respectfully, 

Hugh S. Johnson, 

Adnninistrator, 
January 16, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

MUSICAL MERCHANDISE MANUFACTURING INDUSTRY 

Article I — ^Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, this Code is established as a Code of Fair Competition 
for the Musical Merchandise Manufacturing Industry, and shall be 
the standard of fair competition for this industry and binding upon 
every member thereof. 

Article II — DEriisnTiONS 

Section 1. The term " musical merchandise " as used herein is 
defined to mean all musical instruments, and all other allied prod- 
ucts commonly dealt in in the musical-instrument business, includ- 
ing all accessories, attachments, supplies, parts, materials, strings 
for musical instruments, instrument cases and covers, with the ex- 
ception of the products of the piano, organ, and band-instrument 
manufacturing industries. 

Sec. 2. The term " musical merchandise manufacturing industry " 
as used herein is defined to mean the production, fabricating, re- 
pairing, reconstructing, remodeling, and the assembling of musical 
merchandise and allied products, and/or materials and supplies there- 
of as defined in Section 1 of this Article. 

Sec. 3. 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 nature or method of 
payment of such compensation. 

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

Sec. 5. The term " learner " as used herein, shall mean an employee 
without previous experience or employment in the industry engaged 
in learning any one of the skilled or semiskilled operations incidental 
to the musical merchandise manufacturing industry. 

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 

MAXIMUM HOURS ^ 

Section 1. No employee except as herein otherwise provided shall 
be permitted to work in excess of forty (40) hours per week, aver- 
aged over a four (4) weeks' period; provided, however, that such 

(194) 



195 

employees shall not be employed more than forty eight (48) hours 
in any one (1) week; and provided further that any employee in- 
cluded in this section may be permitted to work a total of not to ex- 
ceed eighty (80) additional hours during any twelve (12) months' 
period, provided tliat overtime at the rate of time and one third is 
paid for the additional hours worked over forty (40) hours per 
week. 

Sec. 2. No person employed in clerical or office work shall be per- 
mitted to work more than forty (40) hours per week, except that at 
inventory periods, such employees may work a maximum of forty 
eight (48) hours per week for a total of not to exceed three (3) 
weeks in each six (6) months' period, provided that time and one 
third shall be paid to such employees for all hours per week over 
forty (40). 

EXCEPTIONS 

Sec. 3. The foregoing stipulations of Sections 1 and 2 of this 
Article shall not apply, however, to employees in managerial, 
supervisory, and executive capacities, technicians on research and 
engineering staffs, or demonstrators, who receive thirty-five dollars 
($35.00) or more per week, nor to commercial traveling salesmen. 

Sec. 4. Service men shall not be permitted to work in excess of 
fortj'-eight (48) hours per week. 

Sec. 5. Watchmen and Firemen shall not be permitted to work 
more than thirty-six (36) and forty -eight (48) hours in alternate 
weeks, or an average of forty-two (42) hours per week; or Firemen 
shall be allowed a ten (10%) percent tolerance on the hours stipu- 
lated in Section 1 of this Article. 

Employmext by Several Employers 

Sec. 6. No employee shall be permitted to work for a total number 
of hours in excess of the number of hours prescribed herein, whether 
he be employed by one or more employers. 

Article IV — Wages 

MINIMUM wage 

Section 1. No male employee shall be paid less than at the rate 
of thirty-five cents (35^') per hour. No female employee shall be 
paid less than at the rate of thirty-two cents (320) per hour. 

minimum wage for clerical and office employees 

Sec. 2. No person employed in clerical or office work shall be paid 
at a rate less than fifteen dollars ($15.00) per week, except that office 
boys and office girls who are between the ages of sixteen (16) and 
eighteen (18) years may be employed at a rate not less than eighty 
percent (80%) of sucli minimum wage. The total number of such 
office boys and office girls employed by any member of the industry 
shall not exceed one (1) in number or five percent (5%) of the total 
number of his employees covered under this section, whichever is 
the higher. 



196 

LP^ARNEIIS 

Sec. 3. No learner shall be paid less than eighty percent (80%) 
of the minimum wage prescribed in Section 1 of this Article. The 
period of learning for each operation shall be determined by the 
Code Authority subject to the approval of the Administrator, but 
in no case shall such period exceeJ six (6) months. 

HANDICAPPED PERSONS 

Sec. 4. A person whose earning capacity is limited because of age 
or physical or mental handicap may be employed on light work at a 
wage below the minimum established by this Code if the employer 
obtains from the State Authority designated by the United States 
Department of Labor a certificate authorizing his employment at 
such wages and for such hours as shall be stated in the certificate. 
Each employer shall file with the Code Authority a list of all such 
persons employed by him. 

PIECEWORK COMPENSATION MINIMUM WAGES 

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

WAGES ABOVE MINIMUM 

Sec. 6. It is the policy of the members of this industry to refrain 
from reducing the compensation for employment which compensa- 
tion was prior to June 16, 1933, in excess of the minimum wage here- 
in set forth, notwithstanding that the hours of work in such employ- 
ment may be reduced; and, unless since such date such adjustments 
have been made, all members of this industry shall endeavor to in- 
crease the pay of all employees in excess of the minimum wage, as 
herein set forth, by an equitable adjustment of all pay schedules. 

FEMALE EMPLOYEES 

Sec. 7. Female employees performing substantially the same work 
as male employees shall receive the same rate of pay as male em- 
ployees. 

Article V — General Labor Provisions 

child labor provision 

Section 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 haz- 
ardous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator within sixty (GO) days after the effec- 
tive date of this Code a list of such operations or occupations. In 
any State an employer shall be deemed to have complied with this 



197 

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 employ- 
ment or age certificates or permits sliowing that the employee is of 
the required age. 

PROVISIONS FROM THE ACT 

Sec. 2. In compliance with Section 7(a) of the Act it is provided 
that : 

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

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

(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. 

RECLASSIFICATION OF EMPLOYEES 

Sec. 3. No employer 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. 

STANDARDS FOR SAFETY AND HEALTH 

Sec. 4. Every employer shall make reasonable provision for the 
safety and health of his emploj^ees at the place and during the hours 
of their employment. 

STATE LAWS 

Sec. 5. No provisions in this Code shall supersede any State or 
Federal laws which impose on employers more stringent require- 
ments as to the age of employees, wages, hours of work, or as to 
safety, health, sanitary or general working conditions, than are im- 
posed b}'^ this Code. 

CONTRA CT LABOR 

Sec. 6. All S3^st«ms of contracts l^etween employer and employee 
for the manufacture of any product or part thereof or for work to 
be done at a specific price and/or by which employees engage other 
employees to work for them, are prohibited by this Code. 

POSTING 

Sec. 7. All employers shall post complete copies of this Code in 
conspicuous places accessible to employees. 



198 

Article VI — Organization, Poavers, and Duties of the Code 

Authority 

organization 

Section 1. A Code Authority is hereby established to cooperate 
with the Administrator in the administration of this Code and shall 
consist of not more than seven (7) nor less than three (3) members of 
the industry to be chosen by a fair method of selection approved by 
the Administrator. The Administrator in his discretion may ap- 
point not more than three (3) additional members without vote and 
without compensation from the industry to serve for such period of 
time and to represent the Administrator or such group or groups as 
he may designate. 

Sec. 2. Vacancies in the personnel of the Code Authority selected 
by the industry shall be filled through the appointment by the Ad- 
ministrator upon nomination of the Code Authority. 

Sec. 3. Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Code Authority 
shall impose no inequitable restrictions on membership, and submit 
to the Administrator true copies of its articles of association, hj- 
laws, regulations, and any amendments when made thereto, together 
with such other information as to membership, organization, and 
activities as the Administrator may deem necessary to effectuate the 
purposes of the Act. 

Sec. 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 provide such hear- 
ings as he may deem proper; and if he shall find that the Code Au- 
thority is not truly representative or does not in other respects com- 
ply with the provisions of the Act, he may take such action as he 
may deem necessary under the circumstances. 

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 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 and disapproval by 
the Administrator, on the basis of volume of business and/or such 
othf'r factors as may be deemed equitable. 

Sec. 6. Nothing contained in this Code shall constitute the mem- 
bers of the Code Authority partners for any purpose. Nor shall 
any member of the Code Authority be liable in any manner to 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. 

POWERS AND duties 

Sec. 7. The Code Authority shall have the following powers and 
duties to the extent permitted by the Act, subject to the right of the 



199 

Administrator, on review, tx) disapprove of 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 byhiws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To obtain from members of the industry as soon as the neces- 
sary readjustments within the industry can be made, reports based 
on periods of one, two, or four weeks, or multiples thereof, for use 
of the Code Authority and the Administrator in the administration 
and enforcement of the Code, and to give assistance to members of 
the industry in improving methods, or in prescribing a uniform 
system of accounting and reporting. All individual reports shall 
be kept confidential and only general summaries thereof may be 
published. 

(d) To obtain from members of the industry such additional in- 
formation 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 pur- 
poses 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 contained in this Code shall relieve any member of the 
industry of any existing obligations to furnish reports to any govern- 
ment agencies. No individual reports shall be disclosed to any other 
member of the industr}'^ or any other party except to such govern- 
mental agencies as may be directed by the Administrator. 

(e) To receive complaints of violations of this Code, make investi- 
gations thereof, provide hearings thereon and adjust such com- 
plaints, and bring to the attention of the Administrator for 
prosecution, recommendations, and information relative to unad- 
justed violations. 

(f) To use the National Association of Musical Merchandise 
Manufacturers or other trade associations and agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein and with the approval of the Administrator to pay such trade 
associations and agencies the cost thereof, provided that nothing 
contained 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 provi- 
sions hereof. 

(g) To coordinate the administration of this Code with such 
other codes, if any, as may be related to the industry, or any sub- 
division thereof, and to delegate to any other administrative author- 
ity, with the prior approval of the Administrator, such powers as 
will promote joint and harmonious action upon matters of common 
interest. 

(h) To secure from members of the industry who assent to this 
Code and/or participate in the activities of the Code Authority such 
proportionate payment of the expenses of maintaining the Code Au- 
thority as may be determined by the Code Authority and approved 
by the Administrator. 



200 

(i) To cooperate with the Administrator in regulating the use of 
the N.R.A. Code Insignia solely by those employers who have agreed 
to, and are complying with, this Code. 

(j) To initiate, consider, and make recommendations for the modi- 
fication or amendment of this Code. 

•Article VII — Trade Practice Rules 

GENERAL DEFINITION 

For all purposes of the Code the acts described in this Article shall 
constitute unfair practices. Any member of the industry who shall 
directly or indirectly through any officer, employee, agent, or repre- 
sentative, knowingly use, employ, or permit to be employed, any of 
such unfair practices shall be guilty of a violation of the Code. 

Section 1. 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. 

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

Sec. 3. 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. 

Sec. 4. 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, quan- 
tity, origin, size, substance, character, nature, finish, material, con- 
tent, or preparation of such goods. 

Sec. 5. No member of the industry shall use advertising or other 
I'epresentation which refers inaccurately in any material particular 
to any competitors of their commodities, prices, values, credit terms, 
policies, or services. 

Sec. 6. No member of the industry shall publish or circulate un- 
justified 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. 

Sec. 7, No member of the industry shall secretly 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 industry 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. 

Sec. 8. No member of the industry shall ship commodities on mem- 
orandum or consignment, except under contract or bona fide orders. 



201 

Sec. 9. No member of the industry shall give, permit to be given, or 
directly offer to give anything of value for the purpose of influencing 
or rewarding the action of any employee, agent, or representative of 
another in relation to the business of the employer of such employee, 
the principal of such agent, or the represented party without the 
knowledge of such employer, principal, or party. Commercial brib- 
er}' 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. 

Sec. 10. 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. 

Sec. 11. No member of the industry shall repudiate a contract en- 
tered into in good faith when the purpose of such repudiation is to 
create for such member an unfair price advantage. 

Article VIII — Modificatign 

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 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 
circumstances, such modification or amendments to be based upon 
application to the Administrator and such notice and hearings as 
he shall specify, and to become effective on approval of the Admin- 
istrator unless otherwise provided. 

Article IX — IMonopolies, Etc. 

No provision of this Code shall be so applied as to permit monop- 
olies or monopolistic practices, or to eliminate, oppress, or discrim- 
inate against small enterprises. 

Article X — Price Increases 

Whereas the 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 
increase except such as may be required to meet individual cost 
should be delayed. But when made such increases should, so far 
as possible, be limited to actual additional increases in the seller's 
costs. 

Article XI — Effective Date 

This Code shall become effective on the second Monday after its 
approval by the Administrator. 

Approved Code No. 209. 
Registry No. 11340-06. 

o 



Approved Code No. 210 
CODE OF FAIR COMPETITION 

FOR THE 

PIPE ORGAN INDUSTRY 

As Approved on January 16, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

PIPE ORGAN INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Pipe Organ Industry, and hearings having 
been duly held thereon and the annexed report on said Code, con- 
taining findings with respect thereto, having been made and directed 

to trflft X^rGSlQGIlt ' 

NO^V, THEREFORE, on behalf of the President of the United 
States, 1, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act ; and do hereby order that said Code of Fair 
Competition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Indu'Strial Recovery. 
Approval recommended : 

George L. Berry, 

Division Adviinistrator. 

Washington, D.C, 

Ja/nuary 16, 1934. 

29830° 20&-13 34 (203) 



The President, 

The White House. 

Sir: A Public Hearing on the Code of Fair Competition for the 
Pipe Organ Industry, submitted by the National Association of 
Organ Builders, located at 45 AVest 45th Street, New York, N.Y., 
was conducted in Washington on the 8th of November, 1933, in ac- 
cordance with the provisions of the National Industrial Recovery 
Act. The Association claims to represent 95 per cent of the 
Industry. 

The maximum hours permitted under this Code for factory em- 
ployees are forty (40) hours in any one (1) week provided, how- 
ever, that this limit may be extended to a maximum of forty-eight 
^48) hours in any one (1) week, for a total of not to exceed twelve 
(12) weeks in any twelve (12) month period, and provided further 
that time and one third shall be paid for all hours per week over 
forty (40). For clerical and office employees a maximum of forty 
(40) hours in any one (1) week is permitted, except that inventory 
and statistical employees may be permitted to work a maximum of 
forty-eight (48) hours in any one (1) week for a total of not to 
exceed three (3) weeks in any six (6) month period. 

The minimum wage for factory employees, except learners, is forty 
cents (400) per hour. The minimum wage for learners is at a rate 
not less than eighty per cent (80%) of the minimum established 
herein, and the total number of persons so employed by a member 
of the Industry is not to exceed one in number or five per cent (5%) 
of the total number of such member's factory workers, whichever is 
the higher and the period of learning is limited to six (6) month* 
whether served under one or more employers. 

The minimum wage for other employees, except office boys and 
off.ce girls, is fourteen dollars ($14.00) per week. Office boys and 
office girls are to be paid not less than eighty percent (80%) of 
the minimum established and the total number of such persons em- 
ployed at less than fourteen dollars ($14.00) per week by any mem- 
ber of the Industry in any calendar month shall not exceed two (2) 
in number or five percent (5%) of the total number of such mem- 
ber's other employees, whichever is the higher. The minimum rate of 
pay established is to apply, irrespective of whether an employee is 
actually compensated on a time rate, piecework performance, or 
other basis. It is also provided that female employees performing 
substantially the same work as male emploj^ees shall receive the 
same rate of pay as male employees. 

The value oJP commodities produced by the Organ Manufactur- 
ing Industry aggregated, during 1929, $11,322,726. During 1931 
product value declined 49.6 percent under the 1929 total, or to 
$5,710,028. 

The number of Pipe Organs manufactured in the United States 
increased from 1,151 in 1919 to 1,767 in 1923, and to 2,471 in 1927. 
Unit production dropped to 1,695 in 1929. This 31.4 percent drop 
of 1929 under 1927 was due for the most part to the introduction 
of sound in motion-picture theaters, which was one of the two main 
consumer groups. Due to economic conditions, the demand for 
church organs has diminished to a very low level, as well. 

Because of the fact that a pipe organ is not a necessity of life, b^it 
a commodity which supplies the cultural wants of mankind, it is 
not purchased until the more vital needs have been supplied. Not 

(204) 



205 

until prosperity has become well established will this industry 
experience a real upturn in business with the resultant reemployment 
of a substantial number of employees. 

Wage earners employment declined 38.9 percent from 1929 to 
1931. On the basis of the forty (40) hour week, 438 wage earners 
should benefit through reemployment. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter : 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by 
avoiding undue restriction oi production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant association 
is an industrial association truly representative of the aforesaid 
Industry; and that said association imposes no inequitable restric- 
tions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 
not been deprived of the right to be heard prior to approval of a 
Code. 

This Industry has cooperated in a most satisfactory manner with 
the Administrator in the preparation of this Code. From evidence 
adduced during this hearing and from recommendations and reports 
of the various Advisory Boards it is believed that this Code as now 
proposed and revised represents an effective, practical, equitable solu- 
tion for this Industry and for these reasons this Code has been ap- 
proved. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 
January 16, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

PIPE ORGAN INDUSTRY 

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 Competition 
for the Pipe Organ Industry, and shall be the standard of fair com- 
petition for this industry and binding upon every member thereof. 

Article II — Definitions 

1. The term " Pipe Organ Industry " as used herein is defined to 
include : 

(a) Organ builders who manufacture and/or assemble Pipe 
Organs. 

(b) Manufacturers operating a factory for the production of Pipe 
Organ parts. 

2. The term " member of the industry ", as used herein, shall mean 
any person engaged as an employer in the Pipe Organ Industry. 

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

4. The term " employer " as used herein includes any one by whom 
such emploj^ee is compensated or employed. 

6. The term " learner " as used herein shall mean an employee 
with less than six (6) months previous experience or employment 
in this industry. 

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 

1. No factory employee shall be permitted to work in excess of 
forty (40) hours in any one "week; provided, however, that this limit 
may be extended to a maximum of forty-eight (48) hours in any 
one week, for a total of not to exceed twelve (12) weeks in any 
twelve (12) month period; and provided further, that time and one 
third shall be paid for all hours per week over forty (40). 

2. No person employed in clerical or office wurk or any other em- 
ployee not elsewhere specifically covered, shall be permitted to work 

(206) 



207 

in excess of forty (40) hours in any one week, except that inven- 
tory and statistical employees may be permitted to work a maximum 
of forty-eight (48) hours in any one week for a total of not to 
exceed three (3) weeks in any six (6) month period. 

3. Watchmen shall be employed in pairs and shall not be per- 
mitted to work more than thirty-six (36) and forty-eight (48) hours 
on alternate weeks or an average of forty-two (42) hours per week. 

4. The foregoing stipulations shall not apply to employees in 
managerial, supervisory, or executive capacities, technicians on re- 
search and engineering staffs, who receive thirty-five ($35.00) dol- 
lars or more per week, nor shall they apply to outside salesmen. 

5. The foregoing stipulations shall not apply to outside installers 
and outside service men who shall be permitted to work forty-eight 
(48) hours per week at the regular hourly rate of pay and where 
emergencies require overtime, they shall be compensated at the rate 
of time and one third for all hours in excess of forty-eight (48). 

6. No employee shall be permitted to work for a total number of 
hours in excess of the number of hours prescribed herein, whether 
he be employed by one or more employers in this or any other 
industry. 

Article IV — Wages 

1. No factory worker, except learners, shall be paid at a rate less 
than forty cents (400) per hour. No learner shall be paid at a 
rate less than eighty percent (80%) of the minimum established 
herein, and the total number of persons so employed by a member 
of the industry shall not in any case exceed one in number or five 
percent (5%) of the total number of such member's factory workers, 
whichever is the higher. The period of learning shall be limited to 
six (6) months, whether served under one or more employers. 

2. No other employees, except office boys and office girls, shall 
be paid less than fourteen dollars ($14.00) per week. Office boys 
and office girls shall be paid not less than eighty percent (80%) 
of the minimum established and the total number of such persons 
employed at less than fourteen dollars ($14.00) per week by any 
member of the industry in any calendar month shall not exceed two 
(2) in number or five percent (5%) of the total number of such 
member's other employees as defined herein, whichever is the higher. 

3. This article establishes a minimum rate of pay which shall 
apply, irrespective of whether an employee is actually compensated 
on a time rate, piecework performance, or other basis. 

4. Female employees performing substantially the same work as 
male employees shall receive the same rate of pay as male employees. 

5. It is the policy of members of this industry to refrain from 
reducing compensation for employment which compensation was, 
prior to June 16, 1933, in excess of the minimum wage herein set 
forth; 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, imless the 
same has been accomplished since June 16, 1933. All action taken 
under this section shall be reported to the Code Authority within 
thirty (30) daj^'s after the eft'ective date of this Code. 



208 

6. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at not 
less than 80% of the minimum wage established by this Code if the 
employer obtains from the State authority designated by the United 
States Department of Labor a certificate authorizing his employ- 
ment. The total number of persons so employed by any employer 
^hall not in any case exceed one in number or 5% of the total number 
of his employees, whichever is higher. Each employer shall file 
with the Code Authority a list of all such persons employed by him. 

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 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 em- 
powered to issue employment or age certificates or permits showing 
that the employee is of the rec[uired age. 

2. 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, and 

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

3. 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. Every employer shall make reasonable provision for the safety 
and health of his employees at the place and during the hours of 
their employment. 

5. 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, than are imposed by this 
Code. 

6. If any employer in this industry is also an employer in another 
industry, the provisions of this Code shall apply to and affect only 
that part of his business which is included in the Pipe Organ 
Industry. 

7. All systems of contract between employer and employee for 
the manufacture of any product or part thereof, or for work to be 



209 

done at a specific price, and/or bj^ which employees engage other 
employees to work for them, are prohibited by this Code. 

8. All employers shall post and keep posted copies of this Code 
in conspicuous places accessible to employees. 

Article VI — Organization, Powers, and Duties or the Code 

Authority 

1. A Code Authority is hereby established to cooperate with the 
Administrator in the administration of this Code and shall consist 
of five persons to be selected by the National Association of Organ 
Builders by a fair method of selection approved by the Admin- 
istrator. The Administrator in his discretion may appoint not more 
than three additional members without vote and without compen- 
sation, to serve for such period of time and to represent the Admin- 
istrator or such group or groups as he may designate. 

2. Vacancies in the personnel of the Code Authority selected by 
the industry shall be filled through appointment by the Admin- 
istrator upon nomination of the Code Authority. 

3. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, by- 
laws, regulations, and any amendments when made thereto, together 
with such other information as to membership, organization, and 
acti^dties as the Administrator may deem necessary to effectuate the 
purposes of the Act. 

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. 

5. Any member of the industry shall be eligible for membership 
in the National Association of Organ Builders or any other trade 
association or organized group participating in the activities of the 
Code Authority upon compliance with the provisions of the bylaws 
relating to membership, provided that any person applying for 
membership shall, in addition to the payment of such dues as are 
imposed upon and paid by all other members, accept a reasonable 
and equitable share of the cost of code administration. Such mem- 
bers of the industry as do not choose to become members of the 
National Association of Organ Builders or anv other trade associa- 
tion or organized group may participate in the activities of the Code 
Authority and the selection of members thereof by assenting to and 
complying with the requirements of this Code and paying to the 
Code Authority a reasonable share of the expenses of its adminis- 
tration based on volume of business and/or such other factors as 
may be deemed equitable, as determined by the Code Authority, 
subject to the disapproval of the Administrator. 

6. Nothing contained in this Code shall constitute tlie meml^ers of 
the Code Authority partners for any purpose. Nor shall any member 



210 

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

7.' The Code Authority shall have the following further powers 
and duties to the extent permitted by the Act, the exercise of which 
shall be reported to the Administrator, who shall have the right to 
disapprove of 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 required for the administration of the Code and 
to provide 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 submited 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 in- 
dividual 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 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 asso- 
ciations and agencies shall at all times be subject to and comply with 
the provisions hereof. 

(e) To designate the National Association of Organ Builders, or 
such other agencies as it may select as the agency for administering, 
supervising, and promoting the performance of the provisions of this 
Code. 

(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 who assent to this 
Code and participate in the activities of the Code Authority an 
equitable and proportionate payment of the reasonable expenses of 
maintaining the Code Authority and its activities. 

(h) 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. 

(i) 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. 



211 
Abticle "VTI — Trade Practice Rules 

Rule 1. Inaccurate Advet^tising . — 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 particu- 
lar, nor shall any member in any way misrepresent any goods (in- 
cluding but without limitation its use, trademark, 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. False Billing. — No member of the industry shall know- 
ingly withhold from or insert in any quotation or invoice any state- 
ment that makes it inaccurate in any material particular. 

Rule 3. Inaccurate Labelling. — 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. 

Rule Jf. Inaccurate Reference to Coinpetitors^ 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. 

Rule 6. Threats of Law Suits. — No member of the industry shall 
publish or circulate unjustified or unwarranted threats of legal pro- 
ceedings 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. Interferenxce with Another'^s Contracts. — No member of 
the industry shall attempt to induce the breach of an existing con- 
tract between a competitor and his employee or customer or source 
of supply; nor shall any such member interfere with or obstruct 
the performance of such contractual duties or services. 

Rule 7. Additional Trade Practices. — The Code Authority shall 
submit to the National Association of Organ Builders within thirty 
(30) days after the effective date of this Code its recommendations 
for additional trade practices, and such trade practices as are ap- 
proved by the Association when approved by the Code Authority and 
the Administrator shall become a part of this Code and shall have 
the same form and effect as any other provisions 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 said Act. 

2. This Code, except as to provisions required by the Act, maj 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 Adminis- 
trator, unless otherwise provided. 



212 
Akttcle 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 — Effective Date 

This Code shall become effective on the eleventh (11th) day after 
its approval by the Administrator. 

Approved Code No. 210. 
Registry No. 1644-02. 

o 



Approved Code No. 211 
CODE OF FAIR COMPETITION 

FOR THE 

ROBE AND ALLIED PRODUCTS INDUSTRY 

As Approved on January 16, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

ROBE AND ALLIED PRODUCTS INDUSTRY 



An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Robe and Allied Products Industry, and 
hearings having been duly held thereon and the annexed report on 
said Code, containing findings with respect thereto, having been 
made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate by reference said an- 
nexed report and do find that said Code complies in all respects with 
the pertinent provisions and will promote the policy and purposes 
of said Title of said Act; and do hereby order that said Code of 
Fair Competition be and it is hereby approved. 

HUGH S. JOHNSON, 

Administratoi' for Industrial Recovery, 
Approval Recommended: 
A. D, Whiteside, 

Division Administrator. 
Washington, D.C, January 16, 193 J^. 

(213) 

29281'' 296-111 34 



The President, 

The White House. 

Sir: This is a report of the Hearing on the Code of Fair Compe- 
tition for the Robe and Allied Products Industry, conducted in 
Washington on August 17, 1933, in accordance with the provisions 
of the National Industrial Recovery Act. 

PROVISIONS FOR HOURS AND WAGES 

This Code limits the hours of labor for all employees, except 
watchmen, outside salesmen, maintenance men, repair shop crews, 
snd persons employed in a supervisory capacity earning not less than 
thirty-five dollars per week, to forty hours per week. Provision is 
made that in the case of office employees and shipping crews the 
employees shall not be held rigidly to forty hours per week; during 
sixteen weeks of the year they may be employed for forty-eight 
hours, provided that during an entire calendar year the average 
number of hours worked by such employees shall not be more than 
forty hours per week. The industry is limited strictly to one shift. 

The minimum wage provided is thirteen dollars per week for all 
employees except apprentices who shall earn at least seventy-five per- 
cent of the minimum wage and persons physically handicapped. 
The employment of both types of workers is subject to strict 



regulation. 



ECONOMIC EFFECT OF THE CODE 



So far as may be determined by the meager statistics available for 
this industry, there is at present, if we discount the current slump, 
little or no unemployment. Probably "because of the vogue during 
recent years for lounging garments the number of workers increased 
from 6,918 in 1929 to 10,670 in 1931, and it is probable that the 
number of workers now employed is greater than the number em- 
ployed in 1931. According to the estimate of the Planning and 
Research Division the forty-hour week will require a twenty percent 
increase in employment to maintain production. 

Practically no information regarding earnings is available, and in 
consequence no estimate may be made of the effect of the thirteen- 
dollar minimum on present earnings. This minimum wage will 
afford some measure of protection for the lower grades of employees 
and, in certain portions of the industry, bring about perhaps a ma- 
terial increase in pay rolls. The most significant paj'^-roll increase, 
however, will be attributable to the reduction in hours rather than 
to any increase in wages which this Code may necessitate. 

(214) 



215 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this mater; 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant asso- 
ciation is an industrial association truly representative of the afore- 
said Industry; and that the said association imposes no inequitable 
restrictions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate small 
enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said 
Code. 

For these reason the Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dviinistratOT. 
January 16, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

ROBE AND ALLIED PRODUCTS INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Code of 
Fair Competition for the Robe and Allied Products Industry, and 
shall be the standard of fair competition for such industry and shall 
be binding upon every member thereof. 

Article II — Definitions 

1. The term " industry " as used herein includes the manufacture 
of bath, lounging, and beach robes, dressing gowns, lounge suits and 
house coats and such other articles as may from time to time be 
included under the provisions of this Code by the President after 
such notice and hearing as he may prescribe. 

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 pajanent of such com- 
pensation. 

3. The term " employer " as used herein includes anyone by 
whom such employee is comi:)ensated or employed. 

4. The term " member of the industry " includes anyone engaged 
in the industry, either as manufacturer, submanufacturer, or con- 
tractor. 

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

Article III — Hours 

1. Except as hereinafter provided no employee shall be permitted 
to work in excess of forty (40) hours in any one week nor more 
than eight (8) hours in any twenty-four (24) hour period. 

2. No person emi3lo3'ed in clerical or office work, or in shipping 
departments, or stock rooms, unless he is employed in a managerial, 
superivisory, or executive capacity and earns not less than thirty-five 
dollars ($35.00) per week, shall be permitted to work in excess 
of forty (40) hours per week, nor more than eight (8) hours in 
any twenty-four (24) hour period, except that such employees may 
be permitted to work forty-eight (48) hours per week during a 
maximum of sixteen weeks in any calendar year, provided that in 

(21G) 



217 

any calendar year the total number of hours worked by any such 
employee shall not exceed an average of forty (40) hours per week. 

3. No watchman shall be permitted to work in excess oi fifty-six 
(5<3) hours in any one week, 

4. The provisions of this article shall not apply to outside sales- 
men or to maintenance men or repair shop crews. 

5. No member of the industry shall operate any machine employed 
in the industry on a schedule of more than one shift of forty (40) 
hours in any one week, except that for a limited time or times due 
to an emergency arising through accident or similar cause, the Code 
Authority may, upon the express approval of the Administrator, 
and upon such conditions as he may prescribe, authorize the opera- 
tion of machines on a schedule of more than one shift of forty (40) 
hours per week. 

6. No employee, except such employees as are enumerated in Sec- 
tions 2, 3. and 4 of this Article, shall be permitted to work more 
than five (5) days in any seven (7) day period. 

7. 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. 

Article IV — ^Wages 

1. Except as hereinafter provided, no employee shall be paid at 
less than at the rate of thirteen ($13.00) dollars per week of forty 
(40) hours, or 32i/^ cents per hour. 

2. This Article establishes a minimum rate of pay which shall ap- 
ply, irrespective of whether an employee is actually compensated on 
a time-rate, piecework, or other basis. 

8. Subject to review by the Code Authority and by the Administra- 
tor, the weekly compensation for employees now in excess of mini- 
mum wages herein provided shall not be reduced, notwithstanding 
that the hours of work in any such employment may be hereby re- 
duced to forty (40) hours per week and piece rates shall be so ad- 
justed that the earnings at said piece rates shall at least be equivalent 
to those obtaining under the longer hours heretofore prevailing. 

4. Persons learning an occupation shall be paid not less than 
seventy-five (75%) percent of the minimum wage which prevails in 
such occupation, provided that the number of such learners shall not 
exceed five (5%) percent of the manufacturing employees of any one 
employer and that learners shall not be employed as such for a period 
in excess of six (6) weeks, irrespective of whether they are employed 
by one or more employers. If the operation at which any learner is 
engaged has a piecework rate and the amount earned at such rate 
bj' such learner is more than seventy-five (75% ) percent of the mini- 
mum wage which prevails in such occupation, such learner shall be 
paid on a piece-rate basis. 

5. A person whose earning capacity is limited because of age 
or phj-sical or mental handicap may be employed on light work at 
a wage below the minimum established by this Code if the employer 



218 

obtains from the Code Authority a certificate authorizing his em- 
ployment at such wages and for such hours as shall be stated in 
the certificate. The Code Authority shall be guided by the instruc- 
tions of the United States Department of Labor in issuing certifi- 
cates to such persons, and shall file with the Administrator a record 
of all such certificates issued and such other information as the 
Administrator may require. 

Article V — General Labor Provisions 

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

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

3. No employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor 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. No employer shall reclassify employees or duties of occupations 
performed for the purpose of defeating the provisions of the Act 
or of this Code. 

6. All members of the industry shall provide for the safety and 
health of their employees. Standards of safety and health shall be 
submitted by the Code Authority to the Administrator within six 
(6) months after the effective date of this Code. 

7. 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 regulations, or insurance, or fire protection, or general 
working conditions, than are imposed by this Code. 

8. All members of the industry shall post complete copies of 
Article III, IV, and V of this Code in conspicuous places accessible 
to employees. 

9. Home work is strictly prohibited. 

10. No provision in this Article shall modify established practices 
or privileges as to vacation periods, leaves of absence, or temporary 
absences from work heretofore granted to office employees. 

11. Any member of the industry who at any time shall manufac- 
ture any merchandise subject to the provisions of this Code shall be 
bound by all the provisions of this Code as to all employees engaged 
in whole or part of such manufacture. In case any employee shall 
be engaged partly in such manufacture and partly in manufuacture 
of goods of another character, this Code shall apply to each portion 
of such employee's time as is applied to the manufacture of articles 
subject to the provisions of this Code. 



219 

12. All manufacturers or jobbers who cause their merchandise to 
be made by contractors shall adhere to the payment of rates for such 
production in an amount sufficient to enable the contractor to pay his 
employees the wages provided in this Code and in addition a reason- 
able payment to the contractor to cover overhead. 

Article VI — AoMixiSTitATioN 

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

2. Said Code Authority shall consist of not more than twelve (12) 
members, to be selected in the manner hereinafter set forth : 

(a) Seven (7) members shall be appointed by the Robe Industry 
Association of America, Inc., subject to the approval of the Board 
of Directors of said Association and to the approval of the Adminis- 
trator. 

(b) Two (2) members shall be elected by the contractors of this 
industry, subject to the approval of the Administrator. Each such 
member shall be a recognized and bona fide contractor and. shall be 
elected by a majority vote of all contractors in the industry. The 
Administrator shall supervise said election. 

(c) In addition to the foregoing, the Administrator may appoint 
not more than three (3) additional members to represent the Admin- 
istrator or such other interests or groups as may be determined upon. 
Should the Administrator appoint a member, or members, to repre- 
sent the Administrator, such member, or members, shall serve with- 
out expense to the industry. 

3. Each trade or industrial association directly or indirectly jDar- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, by- 
laws, regulations, and any amendments when made thereto, together 
with such other information as to membei^hip, organization, and 
activities as the Administra.i;or may deem necessary to effectuate the 
purposes of the Act 

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 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. 

5. Only members of the industry assenting to this Code shall be 
entitled to share the benefits of the activities of the Code Authority 
as hereinafter set forth. 

6. 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 anj^one for any action or omission to act under the Code, 
except for his willful misfeasance or nonfeasance. 



220 

7. The Code Authority shall have the following powers and duties 
to the extent permitted by the Act, and subject to the right of the 
Administrator on review to disapprove any action taken by the Code 
Authority. 

(a) To adopt a constitution, bylaws, and rules and regulations for 
its procedure and for the administration and enforcement of this 
Code, and to submit the same to the Administrator for his approval, 
together with true copies of any amendments or additions when made 
thereto, minutes of meetings when held, and such other informa- 
tion as to its activities as the Administrator may require. 

(b) To insure the execution of the provisions of this Code and to 
provide for the compliance of the industry with the provisions of 
the act. 

(c) To create such individual agencies as may be deemed neces- 
sary or desirable to assist in the administration of this Code. 

(d) To obtain through a confidential agency from the members 
of the industry reports, statistics, and other information for the use 
of the Code Authority and the Administrator in the administration 
and enforcement of this Code, and for the information of the Presi- 
dent, and to give assistance to members of the industry in improving 
methods, or otherwise. Members of the industry shall furnish to 
the Code Authority such duly certified reports as may be required 
as aforesaid. 

(e) To set up, with the approval of the Administrator, a uniform 
cost accounting system for each division or subdivision of the indus- 
try. Any member of the industry shall have the privilege of contin- 
uing any cost system now in use or of instituting a new cost system 
suitable and adapted to his particular needs, provided 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 Administrator. 

(f ) To receive complaints of violations of this Code, make investi- 
gations thereof, provide hearings thereon and adjust such complaints, 
and bring to the attention of the proper authorities for prosecution, 
recommendations and information relative to unadjusted violations. 

(g) 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. 

(h) To coordinate the administration of this Code with such other 
Codes, if any, as may be related to the industry, or any subdivision 
thereof, and to delegate to any other administrative authority, with 
the approval of the Administrator, such powers as will promote joint 
and harmonious action upon matters of common interest. 

(i) To secure an equitable and proportionate payment of the ex- 
penses of maintaining the Code Authority and its activities from 
those members of the mdustry accepting the benefits of the activities 
of the Code Authority or otherwise assenting to this Code. 



221 

(j) To establish or designate an agency on planning and fair 
practice which shall cooperate with the Code Authority in develop- 
ing fair trade practices and industrial planning, including the regu- 
larization and stabilization of employment for the industry. 

(k) To initiate, consider, and make recommendations for the mod- 
ification or amendment of this Code. 

(1) To assist in the adjustment of disputes between members of 
the industry. 

(m) To study the subject of manufacturer-contractor relations and 
to make from time to time to the Administrator such recommendation 
thereon as will contribute to the stability of manufacturer-contractor 
relations. 

8. To assist in the administration and enforcement of this Code, 
the Administrator may direct that the Code Authority establish a 
JOINT INDUSTRIAL RELATIONS BOARD consisting of an 
equal number of representatives of employers and employees and an 
impartial chairman elected by the members of the Board, to investi- 
gate all matters in the Code relating to hours, -wages and general 
labor provisions and to report their findings and recommendations 
to the Code Authority. The designated employee representatives 
shall be truly representative of the employees in this industry and 
shall be selected by such employees. 

9. 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. 

10. An appeal from any action by the Code Authority affecting 
the rights of any employer or employee in the industry may bo 
taken to the Administrator. 

Article VII — N.R.A. Label 

1. All merchandise manufactured subject to the provisions of 
this Code shall bear an N.R.A. label to S3mibolize to purchasers of said 
merchandise the conditions under which it has been manufactured. 

2. Lender 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 sell said labels to the members thereof. 

3. Each label shall bear a registration number especially assigned 
to each member of the industry by the Code Authority, and shall 
remain attached to all such merchandise 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 purchase and use such N.R.A. label, which 
permit shall be granted to them, but only if and so long as they 
comply with this Code. 

5. Subject to the approval of the Administrator, the Code Au- 
thority shall establish rules and regulations and appropriate 
machinery for the issuance and sale 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 



222 

of such members of the industry to the continued use of said labels ; 
of protecting purchasers in relying on said labels; and of insuring 
to each individual 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 Administrator. 

Article VIII — Trade Practices 

1. The maximum terms of discounts on sales made by members of 
the industry after January 29, 1934, shall be six percent (6%) ten 
(10) days, E.O.M. on merchandise made for men and boys, and eight 
percent (8%) ten days E.O.M. on merchandise made for women, 
girls, and infants, anticipation to be permitted at the rate of six 
percent (6%) per annum. For this purpose, any shipment made 
on or after the twenty-fifth (25th) day of the month may be con- 
sidered made as of the first day of the following month. There 
shall be no post dating except that as to any merchandise sold for 
Fall consumption and shipped by a member during the months of 
July or August, dating as of the following Septemoer first, but no 
later, may be granted. 

2. Members of the industry shall sell all merchandise f.o.b. regular 
point of shipment, except that merchandise may be sold delivery free 
within a radius of fifty (50) miles of any city, town, or village from 
which shipment is regularly made. 

In any instance where a member of the industry ships from a 
warehouse located in a city, town, or village other tnan his regular 
point of shipment, such merchandise shall be sold upon either one of 
the following alternative bases : 

(a) At a discount lower than otherwise ordinarily charged by 
an amount sufficient to repay to the member the transportation ' 
charges on such merchandise between said regular point of ship- 
ment and said warehouse. If a lowering of discount shall be in- 
sufficient to wholly repay said transportation charges to the mem- 
ber, any balance thereof remaining unpaid shall be charged to the 
customer. 

(b) At the regular discount but at a price higher than ordinarily 
charged by an amount sufficient to repay to the member said trans- 
portation charges between said points. 

3. No gratuities to purchasers or prospective purchasers, or their 
agents, of any nature whatsoever, shall be offered or paid by any 
member of the industry directly or indirectly; nor shall any pur- , 
chasing, selling, or brokerage commission or compensation or gra- 
tuity, of any nature whatsoever, be offered or paid by any member 
of the industry, directly or indirectly, to any person, except a person 
regularly employed on the sales staff of such member. 

4. No member of the industry shall, directly or indirectly, enter 
into any agreement, express or implied, to pay any rebate to anyone. 
Commencing as of February 1st, 1934, no member shall, directly or 
indirectly, pay any rebate to anyone, ii-respective of the date of any 
agreement to pay such rebate. 



223 

6. No member of the industry shall ship merchandise on consign- 
ment or memorandum. 

6. Merchandise covered by the provisions of this Code sold and 
delivered by members of the industry in substantial compliance with 
an order or contract shall not be accepted by such members for 
return. No member of the industry shall sell any merchandise on 
approval or with the privilege to return. 

7. 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. 

8. No member of the industry shall pay directly or indirectly any 
part of the advertising expenses of any purchaser, prospective pur- 
chaser, or their agents; nor shall any member of the industry di- 
rectly or indirectly furnish either partly or wholly gratis to any 
purchaser, prospective purchaser, or their agents any literature or 
printed matter for redistribution or any premiums (whether or not 
in the form of merchandise), excepting window cards, monograms, 
jobbers' selling kits, newspaper cuts and mats. 

9. 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 merchandise (including but without limi- 
tation its use, trade mark, grade, quality, quantity, origin, size, sub- 
stance, character, nature, finish, material, content, or preparation) or 
credit terms, values, policies, services, or the nature or form of the 
business conducted. 

10. No member of the industry shall brand or mark or pack any 
merchandise 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 merchandise. 

11. No member of the industry shall publish advertising which 
refers inaccurately in any material particular to any competitors or 
their merchandise, prices, values, credit terms, policies, or services. 

12. No member of the industry shall publish or circulate un- 
justified or unwarranted threats of legal proceedings which tend 
to or have the effect of harassing competitors or intimidating their 
customers. 

13. No member of the industry shall give, permit to be given, or 
directly offer to give anything of value for the purpose of influencing 
or rewarding the action of any employee, agent, or representative 
of another in relation to the business of the emploj^er of such em- 
ployee, the principal of such agent or the represented party, without 
the knowledge of such employer, principal, or party. 

14. No member of the industry shall sell any merchandise subject 
to the provisions of this Code at a price below his own individual cost 
as computed by the uniform cost system provided in Article VI, 
Section 7 (e) of this Code; provided, however, that a member of 
the industry may sell at a price below his own individual cost in 
order to meet the competition of another member who is not himself 
selling at a price below his own individual cost. This rule shall not 
apply to bona fide seasonal clearance sales or to the sale of imperfect 



224 

or actually damaged or distressed merchandise; subject to the ap- 
proval of the Administrator, the Code Authority may establish 
regulations to govern such sales. 

Article IX — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of subsection (b) of Section 10 of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, 
approval, license, rule, or regulation issued under Title I of said 
Act and specifically, but without limitation, to the right of the Presi- 
dent to cancel or modify his approval of this Code or any conditions 
imposed by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 
modified on the basis of experience or changes in circumstances, such 
modification to be based upon application to the Administrator, and 
such notice and hearing as he shall specify, and to become effective 
on approval by the Administrator. 

Article X — Monopolies, Etc. 

No provision of this Code shall be so applied as to permit monop- 
olies or monopolistic practices, or to eliminate, oppress, or discrimi- 
nate against small enterprises. 

Article XI — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made impossible of consummation if prices of goods and serv- 
ices increase as rapidly as wages, it is recognized that for the present 
price increases 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 
approval. 



Approved Code No. 211. 
Registry No. 204-1-02. 



o 



Approved Code No. 212 
CODE OF FAIR COMPETITION 

FOR THE 

DRAPERY AND UPHOLSTERY TRIMMING 

INDUSTRY 

As Approved on January 16, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

DRAPERY AND UPHOLSTERY TRIMMING 

INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Drapery and Upholstery Trimming Indus- 
try, and hearings having been duly held thereon and the annexed 
report on said Code, containing findings with respect thereto, having 
been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543- A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will joromote the policy and pur- 
poses of said Title of said Act; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Adininistrator for Industrial Recovery. 

Approval recommended : 
A. D. Whiteside, 

Division Administrator. 
Washington, D.C, 

Janwiry 16, 1934- 

29275° 296-113 34 (225) 



The President, 

The White House. 

Sir : This is a report on the hearing on the Code of Fair Compe- 
tition for the Drapery and Upholstery Trimming Industry, held in 
the Fairfax Room of the New Willard Hotel, on November 10, 1933. 
The Code which is attached was presented by duly qualified and 
authorized representatives of the Industry, complying with statutory 
requirements said to represent over 70% by volume of production 
and 14 out of 50 concerns in the Industry. 

In accordance with customary procedure every person who had 
filed a request for an appearance was freely heard in public, and all. 
statutory and regulatory requirements were complied with. 



THE INDUSTRY 



The Industry comprises 50 concerns having an investment in 1933 
of $4,000,000. In 1929 the industry provided employment for 5,000 
full-time workers. This figure has declined to 2,500 employees in 
1933. The aggregate annual sales have fallen from $20,000,000 in 
1928 to $7,000,000 in 1932. 

PROVISIONS OF THE CODE 

The Code provides for a minimum wage of $13.00 per week. 
Hours are limited to 40 hours for any one week and 8 hours in any 
24-hour period with the following exceptions : Watchmen are per- 
mitted to work 56 hours per week; employees in a supervisory 
capacity receiving $35.00 per week or more, and outside salesmen 
are not limited as to hours; employees on emergency repair work 
are excepted but are to be paid time and one third for hours worked 
in excess of 40 hours per week; office employees are permitted to 
work 48 hours in any one week provided they do not work more 
than 40 hours per week averaged over a period of three months; 
maintenance employees are permitted to work 44 hours per week. 
Hours of work have been reduced by 15%, and employment is 
thereby increased in the same proportion. 

Operations are limited to two shifts of 40 hours each per week. 
All homework is abolished within one month after the effective date. 

Existing differentials between wage rates above the minimum are 
maintained and no employee is to receive less compensation for the 
40-hour week than was received for the longer work week prevailing 
prior to the approval of this Code. Average weekly earnings will 
be increased approximately 7% by the application of this Code. 

Representation on the Code Authority is provided for all members 
of the Industry. There are no highly restrictive provisions in the 

(226) 



227 

Code itself. Provision is made for prohibiting sale of merchandise 
below cost when and if a uniform system of cost accounting recom- 
mended by the Code Authority is approved by the Administrator. 

There was some question as to whether or not this Industry is 
entitled to operate under a separate code, since a large part of the 
products of the Industry are manufactured on weaving and braiding 
machines. These operations are included within the definition of 
the Code for the Narrow Fabrics Industry. At the request of the 
members of the Industry submitting this Code it was decided to 
permit them to operate under this separate code with respect to oper- 
ations performed on weaving and braiding machines until such time 
as the Narrow Fabrics Code is approved by the President. The Code 
will continue in effect for a period of only six months, but this time 
may be further extended or shortened upon application of the Code 
Authority approved by the Administrator. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter ; 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervisions, by elimi- 
nating unfair competitive practices, by promoting the fullest pos- 
sible utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant asso- 
ciation is an industrial association truly representative of the afore- 
said Industry; and that said association imposes no inequitable 
restrictions on admission to membership therein. 



228 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 

For these reasons, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
Washington, D.C, 

January 16^ 193Jf. 



CODE OF FAIR COMPETITION 

FOR THE 

DRAPERY AND UPHOLSTERY TRIMMING 

INDUSTRY 



Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act the following provisions are established as a Code of 
Fair Coni])etition for the Drapery and Upholstery Trimming Indus- 
try, and shall be the standard of Fair Competition for such Industry 
and shall be binding upon every member thereof. 

Article II — Definitions 

1. The term " Industry " as used herein includes the manufacture 
and original sale of trimmings for draperies, furniture, curtains, 
caskets, window and lamp shades, rug fringe, awning fringe, silk 
cords, tassels, bath robe girdles, gimps ,and passementerie trimmings 
all of a decorative nature and curtains manufactured on knitting 
machines. 

2. The term " member of the Industry " includes anyone engaged 
in the Industry as above defined, either as an employer or on his 
own behalf, and includes anyone who furnishes or contracts for 
labor as a part of a larger or further operation in the process 
of manufacturing the products of the Industry. 

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

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

5. The term " productive machinery " as used herein includes all 
machines and hand work equipment used in the manufacturing 
processes of the Industry. 

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

Article III — Hours 

1. No office employee shall work or be permitted to work in exce«;3 
of forty (40) hours per week, averaged over a period of three (3) 

(229) 



230 

months or forty-eight (48) hours in any one (1) week, or eight (8) 
hours in any twenty-four (24) hour period. 

2. No other employee shall work or be permitted to work in excess 
of forty (40) hours in any one (1) week or eight (8) hours in any 
twenty-four (24) hour period, excepting that: 

(a) Repair shop crews, engineers, electricians, and firemen shall 
be permitted to work 10% in excess of the hours specified above. 

(b) Executives and emploj^ees in a managerial or supervisory 
capacity, who receive $35.00 or more per week, and outside salesmen 
are exce^Dted from the maximum hour provisions of this Article. 

(c) Watchmen are permitted to work not more than 56 hours per 
week. 

3. The maximum hours fixed in the foregoing Section shall not 
apply to any employee on emergency maintenance or emergency re- 
pair work involving breakdowns or protection of life or property, 
but in any such special case at least one and one third (1%) times his 
normal rate shall be paid for hours worked in excess of the maximum 
hours therein provided. 

At the end of each calendar month every employer shall report 
to the Code Authority hereinafter provided for, in such detail as may 
be required, the number of man-hours worked in that month in 
cases of emergency and the ratio which said emergency man-hours 
bear to the total number of man-hours of labor during the month. 

4. Members of the Industry shall not operate productive machin- 
ery for more than two shifts of forty (40) hours each per week. 

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. 

Article IV — Wages 

1. The minimum wage that shall be paid by members of the Indus- 
try to any employee shall be at the rate of 321/^ cents per hour. 

2. This Article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time-rate, piecework, or 
other basis. 

3. The weekly compensation for employment now in excess of the 
minimum wages herein provided shall not be reduced (notwithstand- 
ing that the hours worked in such employment may be hereby re- 
duced). Wage differentials existing prior to June 16, 1933, shall 
be maintained for all employees receiving $35 per week or less. 

4. Ferhale 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 this Industry. In any State, any 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. 



231 

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

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

4. Employere shall comply with the maximum hours of labor, 
minimum rates of pa}'^, and other conditions of employment, ap- 
proved or prescribed by the President. 

5. No provision in this Code shall supersede any State or Federal 
law imposing more stringent requirements on emploj^ers, regulating 
the age of employees, wages, hours of work, or health, fire, or general 
working conditions than under this Code. 

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees or use any other subterfuge so as to 
defeat the purposes of the Act. 

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

8. Home work of any kind shall be permitted only for a period 
of one month after the effective date of this Code. 

9. Until adoption of further provisions of this Code that may 
prove necessary in order to prevent any improper speeding up of 
the work (stretch-outs) no manufacturing employee in the Industry 
shall be required to do any work in excess of the practice as to the 
class of work of such employee prevailing on July 1, 1933, or prior 
to the Share-The-Work movement unless such increase is submitted 
to and approved by the Code Authority created by this Code, and 
by the Administrator. 

Article YI — Administration 

1. 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. 

(a) The Code Authority shall consist of 9 individuals or such 
other number as may be approved from time to time by the Admin- 
istrator, to be selected as hereinafter set forth. The Administrator, 
in his discretion, may appoint not more than three (3) additional 
members without vote to represent the Administrator or such groups 
or interests as he may determine. 

(b) Five members of the Code Authority shall be selected by the 
Board of Directors of the Allied Drapery and Upholstei'y Trimming 
Association, and 4 members may be selected by members of the In- 
dustry, not members of this Association, by a fair method, approved 
by the Administrator. 

(c) Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Code Authority 
shall: (1) Impose no inequitable restrictions on membership, and 
(2) submit to the Administrator true copies of its articles of associa- 
tion, bylaws, regulations, and any amendments when made thereto. 



232 

together with such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the i^urposes 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 Aclministrator may provide such hearings 
as he may deem proper, and thereafter if he shall find that the Code 
Authority is not truly representative or does not in other respects 
comply with the provisions of the Act, may require an appropriate 
modification in the method of selection of the Code Authority. 

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

(a) The Code Authority may from time to time present to the 
Administrator recommendations based on conditions in this In- 
dustry, as they may develop, which will tend to effectuate the opera- 
tion of the provisions of this Code. Such recommendations, when 
approved by the Administrator, shall have the same force and effect 
as any provisions of this Code. 

(b) The Code Authority shall cooperate with the Administrator 
in making investigations as to the functioning and observance of 
any provisions of this Code, at its own instance or on complaint by 
any person, and report the same to the Administrator. 

(c) Members of the Industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authority and 
to participate in the selection of the members thereof by assenting 
to and complying with the requirements of this Code and sustaining 
their reasonable share of the expense of its administration. The 
reasonable share of the expenses of the administration shall be deter- 
mined by the Code Authority, subject to approval by the Adminis- 
trator, on the basis of volume of business and/or such other factors 
as may be deemed equitable to be taken into consideration. 

(d) Members of the Industry shall file with the Code Authority, 
at such times and in such manner as may be prescribed, statistics 
covering number of employees, wage rates, employee earnings, hours 
of work, production, shipments, stocks, prices, and such other data 
pertinent to the effectuation of the purposes of this Code as may be 
required by the Administrator. 

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

Article VII — Trade Practices 

1. No member of the Industry shall sell or exchange any product 
of the Industry below his own cost when and if same may be deter- 
mined as herein provided, except to meet the competition of any 
member of the Industry whose price is not less than his own cost. 
When a uniform and standard system of cost accounting, prescribed 
by the Code Authority, shall be approved by the Administrator, 
every member of the Industry shall use a system of accounting which 
conforms to the principles of and is at least as detailed as such 



233 

system. The Code Authority shall, subject to the approval of the 
Adniiuistrator, determine the cost factors to be included in such 
system. 

2. The following unfair trade practices are prohibited : 

(a) The giving, permitting to be given, or directly offering to give, 
anything of value for the purpose of influencing or rewarding the 
action of any employee, 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. This provision shall not be 
construed to prohibit free and general distribution of articles com- 
monly used for advertising except so far as such articles are actually 
used for commercial bribery as hereinabove defined. 

(b) The secret payment or allowances of rebates, refunds, com- 
missions, credits, or unearned discounts, whether in the form of 
money or otherwise, or the secret extension to certain purchasers of 
special services or privileges not extended to all purchasers on like 
terms and conditions. 

(c) The branding or marking of any product of the Industry in 
any manner which tends to deceive or mislead purchasers, with 
respect to the grade, quality, quantity, origin, size, material content, 
or preparation of such product. 

(d) Selling on more liberal terms than 2% 10 days E.O.M. 

Article VIII — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of subsection (b) of Section 10 of the National Industrial Re- 
covery Act, from time to time, to cancel or modify any order, ap- 
proval, license, rule, or regulation issued under Title I of said Act, 
and specifically but without limitation to the right of the President 
to cancel or modify his approval of this Code or any conditions 
imposed by him upon his approval thereof. 

2. After due notice and hearing, this Code, except as to provisions 
required by the Act, may be modified on the basis of experience or 
changes in circumstances; such modifications shall be based on the 
recommendation of the Code Authority or of any interested party 
or group or on the Administrator's own initiative and shall become 
effective on approval by the Administrator. 

Article IX 

When another Code shall be approved by the President covering 
processes or operations in which this Industry or any part thereof 
engages, the provisions of such Code shall supersede any provisions 
of this Code covering such processes or operations. 

Article X — Monopolies, Etc. 

No provision in this Code shall be so applied as to permit monop- 
olies or monopolistic practices, or to eliminate, oppress, or discrimi- 
nate against small enterprises. 



234 
Article XI — Effective Date and Termination 

This Code shall become effective on the 10th day after date. 
It shall continue in effect for a period of six (6) months after such 
effective date. This time may be further extended or shortened upon 
application of the Code Authority approved by the Administrator. 

Approved Ck)de No. 212. 
Registry No. 280-1-02. 

o 



Approved Code No. 218 
CODE OF FAIR COMPETITION 

FOR THE 

WOOL TRADE 

As Approved on January 16, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

WOOL TRADE 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Wool Trade, and hearings having been 
duly held thereon and the annexed report on said Code, containing 
findings with respect thereto, having been made and directed to the 
President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Industinal Recovery, 

Approval recommended : 
A. D. Whiteside, 

Division Adniinistrator. 

Washington, D.C, 

January 16, 1934- 

30227° 313-1 34 (235) 



The President, 

The White House. 

Sir: This is the report on the Code of Fair Competition for the 
Wool Trade submitted by the Boston Wool Trade Association. The 
hearing was conducted in Washington, D.C., on October 23, 1933. 
Every person who requested an appearance was freely heard in 
accordance with statutory and regulatory requirements. The Code 
was presented by duly qualified and authorized representatives of 
the trade, rej^resenting approximately 73% of the volume of 
business. 

DESCRIPTION or INDUSTRY 

This Code was originally submitted by the Boston Wool Trade 
Association, a representative body of several years standing in the 
trade. This Association, however, limited its membership to firms 
having a place of business in Boston. Because of this restriction on 
membership, a new association, the National Wool Trade Associa- 
tion was formed which embraces an even higher percent of the trade 
than did the former association. 

The services performed by the Wool Trade are primarily those of 
merchandising and do not include producing or manufacturing proc- 
esses. The Wool Trade deals directly with the growers, furnishing 
them at sheafing time with an immediate outlet for their product, 
and thereafter assuming the financial responsibility of carrying the 
wool until it passes into the manufacturer s hands. The Wool Trade 
is concerned with handling, financing, grading, warehousing, and 
gelling of this product from gi'ower to manufacturer. The business 
is, by nature, seasonal. Its peak occurs at the time of the spring wool 
clip when the heavy weights of wool from the West cause a high 
peak of employment of temporary labor. 

The Wool Trade is already identified with carrying out the pur- 
poses of the Farm Credit Administration and is, in certain instances, 
subject to regulation by that branch of the Government. Through 
loans made to wool growers by farm relief and loan agencies, the 
Farm Credit Administration has become directly or indirectly inter- 
ested in a substantial proportion of the wool clip of the United 
States. This wool is being handled on consignment by members of 
the Wool Trade who have thereby been subjected to regulation not 
only with respect to the consigned wool which they are handling for 
the farm relief agencies but also with respect to the manner in which 
they handle wool which they themselves own or hold on consignment 
from others. 

Although the Wool Trade, as such, conducts no actual manufac- 
turing operations, it deals in wool in processed forms. Thus, it 
deals in the byproducts of wool manufacturing, such as wool wastes 
and noils, which constitute the raw stock used by certain woolen 
manufacturers. It also deals in scoured and carbonized wool, gar- 
netted stock and similar merchandise which are the direct products 
of processes designed to prepare it for subsequent manufacturing 

(236) 



237 

operations. Although these preparatory processes are not actually 
conducted by the Wool Trade, they are frequently done for them on 
commission by manufacturers, the purpose being to convert the com- 
modity into merchantable form. The grading and sorting of wool, 
processes which involve no machinery but prepare the wool for sale, 
are functions of the Wool Trade as merchants. 

The Wool Trade, as defined in this Code, does not include top mak- 
ers who, although owning no machinery, buy wool, sort it and cause 
it to be scoured and combed in proper blends by the commission 
wool comber. As a group, at their request, they have been treated 
in this Code as manufacturers rather than merchants. 

LABOR PROVISIONS 

The Industry proposes to pay a minimum wage of 37% cents per 
hour. Hours of labor are limited to 40 hours per week, except for 
watchmen, outside salesmen, and buyers and managerial workers re- 
ceiving more than $35.00 per week. Clerical and office employees 
may work an average of 40 hours per week during the six months, 
beginning May 15, but not more than 48 hours in any one week. The 
code provides that in order to prevent or relieve transportation con- 
gestion during the peak of the season, employees engaged in this 
activity may work in excess of the maximum hours and shall be paid 
time and one third for overtime. 

The Code provides also that employers of not more than five per- 
sons located in towns of less than 2,500 population are not included 
within the minimum wage and maximum hour provisions. This 
is to accommodate those persons, such as farmers and small store 
owners, mainly in the wool-growing sections of the West, who buy 
and sell wool incidentally to other occupations during the shearing 
season. 

ADMINTSTRATION 

The provisions of the Administration of this Code are capable of 
providing the N.R.A. and the Wool Trade with sufficient data to 
recommend any modifications or amendments that may be indicated 
by experience. It is also provided that fair trade practices shall 
be submitted within sixty days from the effective date, and that these 
fair trade practices are to be mutually agreed upon by the members 
of this trade and the National Association of Wool Manufacturers. 

CONCLUSION 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter : 

I find that — 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general ^Yelfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 
groups by inducing and maintaining united action of labor and 



238 

management under adequate governmental sanctions and super- 
vision, by eliminating unfair competitive practices, by promoting 
the fullest possible utilization of the present productive capacity of 
industries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

(b) Said Trade normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant asso- 
ciation is a trade association truly representative of the aforesaid 
Trade; and that said association imposes no inequitable restrictions 
on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 

For these reasons, this Code of Fair Competition for the Wool 
Trade has been approved. 
Eespectfully, 

Hugh S. Johnson, 

A dmimis tra tor. 
Jantjaey 16, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

WOOL TRADE 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Code of 
Fair Competition for the Wool Trade, and shall be the standard of 
fair competition for such trade and shall be binding upon every 
member thereof. 

Article II — Definitions 

1. The term " wool trade " as used herein shall mean the business 
of buying, selling, or dealing in any of the following commodities : 
(a) wool, shorn or pulled; (b) new wool waste; (c) noils and all 
other by-products of wool manufacturing; (d) the products of wool 
resulting from preparatory processes, which include the products of 
the processes of grading, sorting, dusting, picking, carding, garnet- 
ting, carbonizing, and scouring ; it is provided, however, that manu- 
facturers of wool textiles operating under another Code of Fair 
Competition, who buy direct for their own purposes and not for re- 
sale, shall be governed as to such share of their business as is in- 
cluded within the above definition of wool trade by the provisions of 
such other code and shall be excluded from all the provisions of this 
Code except such provisions relating to fair trade practices as may 
subsequently be mutually agreed upon by the National Wool Trade 
Association and the National Association of Wool Manufacturers and 
approved by the Administrator. 

2, The term " wool " as used herein shall include wool and the 
hair of the angora goat, cashmere goat, alpaca and like animals. 

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

4. The term "emplo5'^er " as used herein includes anj^one by whom 
any such employee is compensated or employed. 

5. The term " member of the trade " as used herein includes any- 
one engaged in the trade as above defined, 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, 

(239) 



240 

Title I of the National Industrial Recovery Act, and the Admin- 
istrator for Industrial Recovery. 

7. Population for the purpose of this Code shall be determined 
by reference to the 1930 Federal Census. 

Article III — Exemption of Towns Under 2,500 Population 

1. Employers who do not employ more than five (5) persons and 
who are located in towns of less than 2,500 population (according to 
the 1930 Federal Census) which are not in the immediate trade area 
of a city of larger population shall not be included within the 
provisions of Articles IV and V of this Code. 

2. The " 5 persons " refer to any person working in the establish- 
ment except a proprietor, provided such person works at least 24 
hours per week. 

3. A town of less than 2,500 population is deemed to be in the 
immediate trade area of a larger city in either of the following 
instances : 

(a) If it is in the Metropolitan District of a city over 100,000 
population as such Metropolitan Districts are defined in the Federal 
Census of 1930, or 

(b) If its boundaries touch the boundaries of a city or town with 
a population over 2,500. 

Article IV — Hours 

1. No employee shall be permitted to work in excess of 40 hours in 
any one week except watchmen, outside salesmen, and buyers, and em- 
ployees engaged in a managerial or executive capacity who receive 
more than $35 per week; provided, however, that clerical and office 
employees may be permitted to work 40 hours per week averaged over 
the six months, each year, beginning May 15, but in no event in excess 
of 48 hours in any one week, and further provided that watchmen 
shall not work more than 6 days per week. 

2. The maximum hours fixed in the foregoing section shall not 
apply to any employee engaged in emergency work necessary to 
prevent or relieve transportation congestion, but in any such special 
case at least one and one third times his normal rate shall be paid 
for all hours in excess of the maximum prescribed herein. Emer- 
gency hours worked shall be reported monthly to the Code Authority. 

Article V — ^Wages 

1. No employee shall be paid at less than the rate of 37% cents per 
hour. 

2. This Article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time-rate, pieoe-work, or 
other basis. 

3. Wage differentials existing prior to June 16, 1933, shall be main- 
tained 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 readjustment of 
pay schedules. 



241 
Article VI — General Labor Provisions 

1. No person under 16 years of age shall be employed in the trade. 
In any State an employer shall be deemed to have complied with 
this provision if he shall have on file a certificate or permit duly 
issued by the authority in such State empowered to issue employment 
or age certificates or permits, showing that the employee is of the 
required age. 

2. Employees shall have the right to organize and bargain collec- 
tively through representatives of their own choosing, and shall be 
free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or in 
self-organization or in other concei-ted 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 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 
this code. 

Article VII — Administration 

1. To further effectuate the policies of the Act, a Code Authority 
is hereby set up to cooperate with the Administrator in the adminis- 
tration of this Code. Such Code Authority shall consist of not less 
than 5 or more than 8 members, 5 of whom shall be representatives 
of the trade elected by a fair method of selection to be approved by 
the Administrator, and 3 of whom without vote may be appointed 
by the Administrator to serve without expense to the trade. Such 
agency may present to the Administrator recommendations based on 
conditions in the trade as they may develop which will tend to effec- 
tuate the operation of the provisions of this Code and the policies of 
the Act. Such recommendations, when approved by the Adminis- 
trator, after such public hearing as he may deem necessary, shall have 
the same force and effect as any other provisions of this Code. 

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

3. For the purpose of supplying the Administrator with the requi- 
site data as to the observance and effectiveness of this Code, and 
as to whether the Wool Trade is taking appropriate steps to enable 
it to adjust its hours of labor and wages in accordance with the de- 



242 

clared policy of the Act, each employer shall furnish regular reports 
as hereinafter provided. The Code Authority is hereby constituted 
the agency to provide for the collection and receipt of such reports 
and for the forwarding of the compiled results of such reports to 
the Administrator, and to provide for the holding of such reports 
themselves in confidence. Such reports shall be in such form, shall 
be furnished at such intervals, and shall contain such information 
relative to the purposes of this Code as shall be prescribed by the 
Administrator or by the Code Authority with the approval of the 
Administrator; including particularly information with respect to 
employment, hours, wages, and wage-rates, and with respect to stocks 
on hand of wool and of the other commodities specified in Article II, 
Section 1, hereof. 

4. In addition to the information required to be submitted to the 
Code Authority, there shall be furnished to Government agencies 
such statistical information as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the Act. 

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

Article VIH — 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. 

2. Such of the provisions of this Code as are not required to be 
included therein by the Act may, with the approval of the Adminis- 
trator, be modified or eliminated in such manner as may be indicated 
by the needs of the public, by changes in circumstances, or by ex- 
perience ; all the provisions of this Code, unless so modified or elimi- 
nated, shall remain in effect until the expiration date of Title T of 
the Act. 

Article IX — Monopolies 

No provision of this Code shall be so applied as to permit monopo- 
lies or monopolistic practices, or to eliminate, oppress, or discrimi- 
nate against small enterprises. 

Article X — Fair Trade Practices 

Within 60 days after the effective date of this Code, the Code Au- 
thority, after consultation with the trade, shall submit to the Ad- 



243 

ministrator recommendations for the adoption of fair trade prac- 
tices, and such recommendations shall, upon the approval by the 
Administrator, become effective as part of this Code. 

Article XI — Effective Date 

This Code shall become effective on the second Monday after date. 

Approved Code No. 213. 
Registry No. 282-01. 

O 



Approved Code No. 214 
CODE OF FAIR COMPETITION 

FOR THE 

SLIT FABRIC MANUFACTURING INDUSTRY 

As Approved on January 16, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

SLIT FABRIC MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Slit Fabric Manufacturing Industry, and 
hearings having been duly held thereon and the annexed report on 
said Code, containing findings with respect thereto, having been 
made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No, 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate by reference said an- 
nexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Industrial Recoveiy, 

Approval recommended : 

A. D. Whiteside, 

Division Administrator. 

Washington, D.C, January 16^ 1934-. 

32700" 313-74 34 (245) 



The President, 

The White House. 

Sir: The public hearing on the Code of Fair Competition for 
the Slit Fabric Manufacturing Industry, as proposed by the Na- 
tional Association of Slit Fabric Manufacturers, Inc., was con- 
ducted in Room 2062, Department of Commerce Building, Wash- 
ington, D.C., on October 30, 1933. Every person who requested an 
appearance was fairly heard in accordance with regulations of the 
National Recovery Administration. The Code has the approval 
of the Labor, Industrial and Consumers' Advisory Boards of the 
National Recovery Administration and of the Legal Division. The 
Chairman of the Code Committee of the submitting Association upon 
authorization of the Committee has also given his approval to the 
final draft of the Code on behalf of the Industry. 

DESCRIPTION OF THE INDUSTRY 

The industry as defined in the Code includes the manufacture and 
sale by the manufacturer or jobber of slit fabrics for bindings, 
pipings, trouser curtains, waist-band canvas and trimmings for use 
of and sale to the cutting-up manufacturing trades. The Slit Fabric 
Manufacturing Industry is a " supply " industiy. Its customers 
are the cutting-up manufacturing trades composed mainly of manu- 
facturers of wearing apparel. The definition limits the application 
of the Code to the Slit Fabric Manufacturers whose product is used 
by and sold to the cutting-up manufacturing trades. This excludes 
from the provisions of this Code those few garment manufacturing 
firms which produce slit fabrics not for sale to others but for con- 
sumption by themselves as part of their finished garment. It also 
excludes those slit fabric manufacturers known as a box trade whose 
problems are different and whose product is destined solely for sale 
" over the counter " at retail. Likewise excluded by this limitation 
in the definition are manufacturers of slit fabrics used by and sold 
to the shoe, electrical equipment and rubber tire industries. 

The submitting Association has offered the following general sta- 
tistics which are descriptive of the industry. 

Total Firms in the ludustry 100 

Aggregate Ammul Sales, 1932 $8,000,000 

Aggregate Invested Capital, 1933 $3, 700, OOO 

Employees 1, 700 

RESUME or THE CODE 

Article I states the purpose of the Code. 

Article II sets forth certain definitions. 

Article III contains the maximum hour provisions of the Code, 
prohibits the employment of workers in homes and limits the opera- 
tion of each plant in the industry to one shift per day. 

(246) 



1 



247 

Article IV establishes the minimum wage for all employees 
employed in the industry. 

Article V contains the general labor provisions including a provi- 
sion prohibiting child labor as well as the mandatory labor provisions 
required by the Act. 

Article VI sets up a Code Authority and defines its powers and 
duties. 

Article VII provides for the elimination of certain unfair trade 
practices. 

Article VIII provides the methods of modifying the Code. 

Article IX contains the mandatory provisions referring to mo- 
nopolies and discrimination against small enterprises. 

Article X states the effective date of the Code. 

LABOR provisions OF THE CODE — POSSIBLE REEMPLOYMENT 

Being primarily a service industry and using as it does generally 
cotton fabrics, the industry employs workers with no high degree of 
skill and is close to the cotton textile industry in its general position. 
It seems reasonable therefore that its wage and hour provisions 
should be largely determined by those applying in the cotton textile 
and other similar industries. 

It is noteworthy that the number of employees is reported to be 
about the same in 1933 as in 1928 and 1930. From June to October 
1933 there was an increase of 110 employees. This represents in part 
the effect of the application of the President's Reemployment Agree- 
ment. It is estimated by the Industry that from 30% to 40% of all 
employees received wage increases as a result of the application of 
the President's Reemplojanent Agreement and that most of these 
were female emploj^ees. The minimum w^ages paid in the industry 
prior to the President's Reemployment Program are stated to have 
been $8, $9, and $10 per week. Proponents of the Code assert that 
the present pay roll represents an increase from 50% to 200% over 
those paid before the adoption of the President's Reemploj-ment 
Agreement. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter; 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign com- 
merce which tend to diminish tlie amount thereof and will provide 
for the general welfare by promoting the organization of industry 
for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervisions, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 



248 

required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing and 
relieving unemployment, by improving standards of labor, and by 
otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant group 
is an industrial group truly representative of the aforesaid Industry ; 
and that said group imposes no inequitable restrictions on admission 
to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
email enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 
not been deprived of the right to be heard prior to approval of 
said Code. 

For these reasons, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 

January 16, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

SLIT FABRIC MANUFACTURING 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 Slit Fabric Manufacturing Industry and 
shall be the standard of fair competition for this industry and shall 
be binding ujDon every member thereof. 

Article II — Definitions 

1. The term " industry " as used herein includes the manufacture 
and sale by the manufacturer or jobber of slit fabrics for bindings, 
pipings, trouser curtains, waistband canvass and trimmings for use 
of and sale to the cutting-up manufacturing trades. The articles 
enumerated herein when made in clothing factories and used in con- 
nection with the garments manufactured in such factories are 
exempted from 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 
services, irrespective of the nature or method of payment of such 
compensation. 

3. The term " employer " as used herein includes anyone by whom 
any 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 "Act " and "Administrator " as used herein shall 
mean, respectively, Title I of the National Industrial Recovery Act 
and the Administrator for Industrial Recovery. 

6. The term " Southern Section of the United States " as used 
herein shall include the States of Alabama, Florida, Georgia, Ken- 
tucky, Louisiana, Mississippi, North Carolina, South Carolina, 
Tennessee, Texas, and Virginia. 

7. The term '" Northern Section of the United States " as used 
herein shall include all the States in the United States not specifically 
included within the Southern Section of the United States, and 
the District of Columbia. 

8. The term " jobber " as used herein includes all those for whom 
and/or under whose directions or orders slit fabrics for bindings, 
pipings, trouser curtains, waist-band canvas and trimmings are 
manufactured in Avhole or in part by contractors and/or other man- 
ufacturers, and who act as wholesale distributors thereof. 

9. The term " manufacturer " as used herein includes all those who 
manufacture slit fabrics as' defined in Section 1 of Article 11. 

(249) 



250 
Article III — Hours or Laboh 

1. Except as hereinafter provided no employee shall be jx'rmitted 
to work in excess of forty (40) hours in any one week or eight (8) 
hours in any twenty-four (24) hour period. 

2. The provisions of this Article shall not apply to those persons 
engaged in an executive, managerial, or supervisory capacity earn- 
ing $35.00 per week or more, and who are not engaged in any way in 
productive labor; nor to outside salesmen. 

3. Chauffeurs, shipping clerks, and outside errand boys shall not be 
permitted to work in excess of 44 hours in any one week. 

4. The maximum number of hours of overtime which any employee 
may work in any six (6) months' period shall be twenty-five (25) 
hours, and in no event shall any employee be permitted to work more 
than one (1) hour overtime per day, or more than five (5) hours 
overtime per week. All overtime shall be paid for at not less than 
the rate of time and one third. 

5. No overtime in addition to that herein provided for shall be 
permitted except upon the recommendation of the Code Authority 
and the approval of the Administrator and under such conditions 
and upon such terms as the Administrator shall prescribe. 

6. 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. 

7. No home work shall be pemiitted by members of the industry. 

8. Not more than one (1) shift of employees shall be allowed 
in any one (1) day. The Administrator, upon due showing and 
after such notice and hearing as he may prescribe, may grant such 
exceptions to this provision as he may deem necessary. 

Article IV — Rates of Pay * 

1. No employee shall be paid at less than the rate of thirteen 
(13) dollars per week when employed in the Northern Section of 
the United States, nor less than at the rate of twelve (12) dollars 
per week when employed in the Southern Section of the United 
States, except as hereinafter provided. 

2. Apprentices may be paid not less than at the rate of eighty 
percent (80%) of the minimum wage provided for herein for a 
period not to exceed eight (8) weeks, provided that at no time shall 
the total number of apprentices employed by any one employer exceed 
eight percent (8%) of the total number of employees. HoAvever, any 
employer shall be entitled to employ at least one apprentice. 

3. This Article establishes a minimum rate of pay, regardless of 
whether an emploj'ee is compensated on a time-rate, piecework, or 
other basis. 

4. Wages of those receiving more than the minimum shall be 
equitably adjusted so as to preserve the differentials existing on 
July 1, 1933. All adjustments of wage rates made in accordance 
with this provision shall be reported to the Code Authority within 
thirty (30) days of the eflfective date of this Code. 



251 

The Code Authority shall have the power to investigate and adjust 
complaints arising under this provision; adjustments by the Code 
Authority shall be subject to review by the Administrator. 

5. Female employees performing substantially the same work as 
male employees shall receive the same rate of pay as male employees. 

6. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed at a wage below the 
minimum established by this Code under the following conditions : 

(a) That they shall be paid proportionately no less than the other 
emploj'ees in the same factory receive for similar work, but in no 
case shall their compensation amount to less than seventy percent 
(70%) of the amount required by the minimum wage provisions of 
this Code. 

(b) That the employer shall at once prepare and transmit to the 
Code Authority a list of such excepted persons stating name, class 
of occupation, w^age rate, length of service, and reason for exception. 
This list shall be revised up-to-date once each month and transmitted 
to the Code Authority. 

(c) The proportion of excepted persons to total employees at any 
time shall not exceed the proportion of such employees on the pay 
roll during the week of July 15, 1933. 

(d) The Code Authority shall have the right to investigate and 
disallow any such claims for exception subject to review by the 
Administrator upon appeal by any employer or employee. 

(e) The Code Authority shall report to the Administrator within 
three (3) months and from time to time thereafter as to the effect 
of the operation of this provision, both generally and in cases of 
individual hardship. 

Article V — General Labor Provisions 

1. No person under 16 years of age shall be employed in the indus- 
try, nor anyone under 18 years of age at operations or occupations 
hazardous in nature or detrimental to health. The Code Authority 
shall submit to the Administrator before February 1, 1934, a list of 
such occupations. In any State an employer shall be deemed to have 
complied with this provision if he shall have on file a certificate or 
permit duly issued by the authority in such State empowered to 
issue employment or age certificates or permits, showing that the 
employee is of the required age. 

2. Employees shall have the right to organize and bargain 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. Xo employeii 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 x^rescribed by the President. 



252 

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 or engage in any subterfuge so as to 
defeat the purposes of the Act. 

7. Each employer shall post in conspicuous places accessible to 
employees copies of Articles III, IV, and V of this Code. 

Article VI — Administration 

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

(a) The Code Authority shall consist of not less than five (5) 
nor more than eight (8) members, five (5) of whom shall be selected 
by the Board of Directors of the National Association of Slit Fabric 
Manufacturers, Inc., and not more than three (3) of whom, without 
vote and without expense to the Industry, may be appointed by the 
Administrator to represent such groups or interests or such govern- 
mental agencies as he may designate. 

(b) 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) 
Submit to the Administrator true copies of its articles of association, 
by-laws, regulations, and any amendments when made thereto, to- 
gether with such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

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

(d) The Administrator shall entertain complaints and provide 
such hearings as he may deem proper for those claiming the right 
to be represented on the Code Authority, and shall have the right 
from time to time to change the method of selection and the organiza- 
tion selecting the members of the Code Authority, in order that it 
shall be truly representative of the industry. 

(e) If it shall be represented to the Administrator by any inter- 
ested party, or he shall determine upon liis own motion, that any 
action of the Code Authority, or of any subdivision Code Authority, 
is unfair to any private interest or contrary to the public interest, the 
Administrator may require that such action be suspended for a period 
of not to exceed thirty (30) days to afford an opportunity for Inves- 
tigation of tlie merits of such complaint and further consideration 
by the Code Authority pending final action, to bs taken only upon 
approval by the Administrator. 



253 

2. Tlie Code Anthorit}'^ shall have the following duties and powers 
to the extent permitted by the Act and subject to the right of the 
Administi-ator or his Deputy on review to disapprove any action 
taken by the Code Authority. 

(a) To elect officers and to assign to them such duties as it may 
consider advisable, and to provide rules for its procedure, and ite 
continuance as the administrative agency of this Code, in accordance 
with the terms of the Act and the principles herein set forth, 

(b) To receive, investigate, and adjust complaints of violations of 
this Code, and based upon such investigations and after such hearings 
as it may deem proper, to make recommendations in respect thereto 
to the proper autliorities for the prosecution of such violations. 

(c) To obtain from time to time from employers in the industry 
reports in respect to wages, hours of labor, conditions of employment, 
number of employees, and other matters pertinent to the purposes of 
this Code, as the Code Authority may prescribe, and to submit peri- 
odical reports to the Administrator in such form and at such times as 
he may require, in order that the President may be kept informed 
with respect to the observance thereof. 

No individual reports shall be disclosed to any other member of 
tJie industry or any other party except to such governmental agencies 
as may be directed by the Administrator. 

(d) In addition to the information required to be submitted to 
the Code Authority, all members of the industry shall furnish such 
adequate information as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the Act to such Federal 
and State agencies as the Administrator may designate. Nothing 
in this Code shall relieve any one of any existing obligation to 
furnish reports to government agencies. 

(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 agents the cost thereof ; provided, that such 
agency shall at all times be subject to and comply with the provi- 
sions of this Code; and provided further, that nothing herein shall 
relieve the Code Authority of any of its duties and responsibilities 
hereunder. 

(f) To coordinate the administration of this Code with such 
other codes, if any, as may be related to the Slit Fabric Manufactur- 
ing Industry, or an}^ subdivision thereof, with a Adew to promoting 
joint and harmonious action upon matters of common interest. 

(g) To make surveys, to compile reports, to collect statistics 
and trade information, to investigate unfair trade practices, to make 
recommendations for fair trade practices, and otherwise assist the 
Administrator in effecting the purposes of this Code and the Act. 

(h) To provide ways and means for financing the operation of 
said Code Authority and to determine an equitable method of ap- 
portioning in the industry the cost of administering this Code. 
Money raised in any manner shall not exceed in amount such reason- 
able cost. 

(i) To cooperate with the Administrator in regulating the use 
of the N.R.A. insignia solely by those employers who have assented 
to this Code. 



254 

(j) Subject to the approval of the Administrator, the Code Au- 
thority shall have the power to adopt a uniform cost-accounting 
system for the industry, which when so adopted shall be the standard 
cost-accounting system for the Industry. 

3. 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 Adminis- 
trator, on the basis of volume of business and/or such other factors 
as may be deemed equitable, 

4. The Code Authority shall study provisions relating to trade 
practices, investigate the observance thereof, and make such recom- 
mendations thereon to the Administrator as it shall deem advisable. 
Upon the approval of the Administrator and after such hearing as 
he may prescribe, such recommendations, or any part of them, as 
may be so approved, shall become a part of this Code and shall have 
full force and effect as provisions hereof. 

Article VII — Trade Practices 

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

1. False Marking or Branding. — The false marking, branding, or 
invoicing of any product of the industry which has the tendency 
to mislead or deceive customers or prospective customers, whether 
as to its grade, quality, quantity, substance, character, nature, origin, 
size, finish, its preparation, or otherwise. 

2. Misrepresentation or False or Misleading Adirertising. — 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 the credit terms, values, pol- 
icies, or services of any member of the industry, or otherwise, having 
the tendency or capacity to mislead or deceive customers or prospec- 
tive customers. 

3. Commcrci-al Bribery. — No member of the industry shall give, 
permit to be given, or directly offer to give anything of value for 
the purpose of influencing or rewarding the action of any employee, 
agent, or representative of another in relation to the business of the 
employer of such employee, the principal of such agent, or the rep- 
resented 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 com- 
mercial bribery as hereinabove defined. 

4. Interference with Contractual Relations. — Maliciously inducing 
or attempting to induce the breach of an existing oral or written 



255 

contract between a competitor and his customer or source of supply, 
or interferino^ with or obstructing the performance of any such con- 
tractual duties or services. 

5. /Secj'et 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 purchasers 
on like terms and conditions. 

6. Defamation. — The defamation of competitors by falsely im- 
puting to them dishonorable conduct, inability to perform contracts, 
questionable credit standing, or by other false representations, or 
by the false disparagement of the grade or quality of their goods. 

7. Threats of Litigation. — The publishing or circularizing of 
threats or suits for infringement of patents or trade marks or of any 
other legal proceedings not in good faith, with the tendency or effect 
of harassing competitors or intimidating their customers. 

8. 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. 

9. Consigned Merchandise. — No member of the industry shall ship 
goods on consignment or memorandum except under circumstances 
to be defined by the Code Authority where peculiar circumstances of 
the industry require the practice. 

10. Selling Below Cost. — No member of the industry shall sell any 
article at price below his individual cost except as hereinafter pro- 
vided. Any member of the industry may meet the price of any other 
member of the industry whose cost under this provision is lower and 
may sell dropped lines or distress merchandise below such cost if 
approval of such sale is first obtained from the Code Authority. 
For this purpose, costs shall be determined by the Uniform Cost 
Accounting System provided for in the foregoing Article VI, Sec- 
tion 2, Subsection (j). 

Article VIII — Modifications 

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, l3ut 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 
upon approval of the Administrator. 



256 
Article IX — Monopolies 

No provision of this Code shall be so applied as to permit monop- 
olies or monopolistic practices, or to eliminate, oppress, or discrimi- 
nate against small enterprises. 

Article X — Effectr'e Date 

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

Approved Code No. 214. 
Registry No. 299-04. 

o 



Approved Code No. 215 
CODE OF FAIR COMPETITION 

FOR THE 

AMERICAN GLASSWARE INDUSTRY 

As Approved on January 16, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

AMERICAN GLASSWARE INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the American Glassware Industry, and hear- 
ings having been duly held thereon and the annexed report on said 
Code, containing findings with respect thereto, having been made and 
directed to the President * 

NOW, THEREFORE,* on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated Decem- 
ber 30, 1933, and otherwise; do hereby incorporate by reference 
said annexed report and do find that said Code complies in all 
respects with the pertinent provisions and will promote the policy 
and purposes of said Title of said Act; and do hereby order that 
said Code of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Adirvinistrator for Industrial Recovery. 
Approval recommended : 

George L. Berry, 
Division Administrator . 

Washington, D.C, 

January 16, 103Jf. 

(257) 
82789° 3l3-75__34 



The President, 

The White House. 

Sir: A Public Hearing on the Code of Fair Competition for the 
American Glassware Industry, submitted by the American Glass- 
ware Association, located at i9 West 44th Street, New York, N.Y., 
was conducted in Washington on the 3rd of November 1933 in ac- 
cordance with the provisions of the National Industrial Recovery 
Act. The Association claims to represent 80 percent of the Industry. 

This Industry is intimately related to the Glass Container Indus- 
try and a number of plants have their production divided between 
these two Codes. For that reason the hour and wage provisions of 
this Code have been made to conform with the hour and wage pro- 
visions of the Glass Container Code. 

The maximum hours permitted under this Code are forty (40) 
hours per week, as averaged over a period of thirteen (13) weeks, 
provided, however, that in no case shall any employee be permitted 
to work in excess of forty-eight (48) hours during any one week. 
For clerical and office employees a maximum is permitted of forty 
(40) hours per week averaged over each four (4) weeks' period and 
not in excess of forty -eight (48) hours in any one week. 

The minimum wage is forty cents (40^) per hour, unless the 
hourly rate for the same class of work on July 15, 1929, was less 
than forty cents (400) per hour, in which case the minimum wage 
shall be not less than the wages paid in July 1929, and in no case less 
than thirty cents (30^) per hour. 

The outlets for the products of this Industry are wholesalers, job- 
bers, retailers, and various manufacturers of other products who use 
glass in the fabrication of their commodities, including the manu- 
facture of storage batteries, signal devices, artificial illuminating- 
equipment, etc. The exports to foreign markets are small com- 
pared with the total volume of business. 

The demand for glass products is fairly uniform throughout the 
year, due to the wide uses to which glass has been put. Due to the 
fact that the American Glassware Industry is so interwoven with 
other industries throughout the country, an upturn in general busi- 
ness conditions should be reflected favorably in this Industry. 

On the basis of the 40-hour week, 3,104 wage earners should benefit 
through reemployment. This increase represents 15.08% which will 
bring the total number of employees up to 23,797. 

The value of commodities produced by the American Glassware 
Industry aggregated during 1929, $90,865,936. During 1931 product 
value declined 32.2 per cent under the 1929 total, or to $61,633,709. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the pro- 
ceedings in this matter; 

(258) 



259 

I find that — 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elim- 
inating unfair competitive practices, b}' promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemploj-ment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant association 
is an industrial association truly representative of the aforesaid In- 
dustry; and that said Association imposes no inequitable restrictions 
on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 

Tliis Industry has cooperated in a most satisfactory manner with 
the Administrator in the preparation of this Code. From evidence 
adduced during this hearing and from recommendations and reports 
of the various Advisory Boards it is believed that this Code as now 
proposed and revised represents an effective, practical, equitable solu- 
tion for this Industry and for these reasons this Code has been 
approved. 

Respectfully, 

Hugh S. Johnson, 

Administrator. 
J.^XUART IC, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

AMERICAN GLASSWARE INDUSTRY 

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 Competition 
for the American Glassware Industry, and its provisions shall be the 
standards of fair competition for such industry and binding upon 
every member thereof. 

Article II — Definitions 

1. The term " Glassware Industry " as used herein means the busi- 
ness of producing glassware, other than glass marbles, glass con- 
tainers, flat glass, optical glass, and fabricated laboratory glassware 
in the continental United States, its territories or possessions. 

2. The term " association " means the American Glassware Asso- 
ciation. 

3. The term " member of the Industry " includes, but Avithout 
limitation, any individual, partnership, association, corporation, or 
other form of enterprise engaged in the industry, either as an 
employer or on his own behalf. 

4. The term " employee " as used herein includes any and all per- 
sons engaged in the industry, however compensated, except a member 
of the industry. 

5. The term " plant ", as used herein, means a place where glass- 
ware, as defined in Section 1 of this article, is produced. 

6. The terms "Act " and "Administrator " as used herein mean 
respectively Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery. 

7. The term " majority vote ", as used herein, shall mean that 
each member of the industry, as defined in Section 3 of this article, 
shall have one vote and at each meeting of the members of this indus- 
try a quorum shall consist of members whose votes represent at least 
61% of the total votes and whose registered sales volume equals at 
least 51% of the total registered sales volume; 75% of the members 
of the industry present at such meetings shall constitute a majority 
vote, provided that the total registered sales volume of such number 
of members equals at least 75% of the total registered sales volume 
of all members present. 

8. The term " staff " means the emploj^ed personnel of American 
Glassware Association, and may be an individual, partnership, or 

(260) 



. 2G1 

corporation, which shall not, however, be financially interested in 
any member of the industry. 

b. The term " Divisions " includes the following branches of the 
Glassware Industry: 

A. Illuminating Glassware Division includes all glassware used 
in connection with artificial sources of illumination where such glass- 
ware, by virtue of its shape, design, and material composition, is in- 
tended to modify, to reflect, and/or to diffuse, the light emanating 
from the source of artificial illumination and/or to decorate the same 
as described in paragraph 1 of this article, excluding those specifi- 
cally provided for in the definitions of other Divisions. 

B. Technical and Industrial Glassware Division includes — 

1. Glass parts for electrical devices, consisting of glass parts 

for electrical lamps (light sources), radio tubes, power 
vacuum tubes, photo-electric cells, gaseous discharge 
tubes, X-Ray apparatus, and other similar electrical 
devices. 

2. Glass insulator's and insulation. 

3. Signal grlassicarc, consisting of railway, marine, aviation, 

and traffic signal glassware, including flood lights, bat- 
tery jars, gauge glasses, and glass parts of signal appara- 
tus, and also lamp chimneys and lantern globes made to 
specification for railway and marine uses. 

4. Vacuum glasstcare, consisting of glassware for insulated or 

evacuated containers. 

5. Cooking glassicare. 

C. Lamp Chimneys x\nd Lantern Globes Division includes lamp 
chimneys of a variety of sizes and shapes of blown, clear glassware, 
plain or decorated, manufactured either by hand or machine, used 
on lamp equipment which burns kerosene oil or gasoline, or on 
equipment which simulates such lighting apparatus, except lamp 
chimneys used in lighthouses or on or in connection with railways 
and al'so includes lantern globes (other than railway lantern globes) 
of a variety of clear and/or colored blown glass shapes manufactured 
either by hand or machine used on oil lighted equipment, or on 
equipment which simulates such apparatus. 

D. Scientific Glassware Division includes laboratory, surgical, 
and hospital glassware in blown and pressed shapes, also drawn or 
fabricated tubing and rod, excepting, however, fabricated laboratory 
glassware. 

E. Automatic Tumbler Glassware Division includes blown, or 
pressed, or pressed and blown tumblers produced by full automatic 
process. 

F. Automatic Glassware Division includes pressed, or pressed 
and blown, glassware produced by fully automatic process, not speci- 
fically defined under other Divisions in the Article. 

G. Automobile Glassware Division includes lens and other signal 
glassware for automobiles. 

H. Blown Table Glassware Division includes paste mould, iron 
mould, and " off-hand " tableware, stemware, tumblers, and kindred 
items made by hand or semiautomatic process. 

I. Blown Glassware Division includes those generally listed 
groups of blown articles, paste and iron mould, made by hand and 



262 

semiautomatic processes, clear and colored, plain and decorated, 
private mould and otherwise, not specifically covered by other Divi- 
sions, such as glassware for vending and display devices, cylinders, 
jars, lamp bases, lamp columns, lamp stems and parts, sacramental 
glassware, aquaria, seed cups, glassware for coffee- and tea-making 
devices, and other kindred groups, commonly recognized by the 
trade. 

J. Pressed Glassware DmsioN A includes those generally listed 
groups of pressed or pressed and blown glassware, melted in tanks, 
made by side-lever, rotary, and semiautomatic processes, such as 
tableware, stemware, tumblers, jars, bar goods, soda-fountain glass- 
ware, hotel- and restaurant-supply glassware, kitchen glassware, 
stationers glassware, and other kindred groups, commonly recognized 
by the trade. 

K. Pressed Glassware Division B includes those generally listed 
groups of pressed or pressed and blown glassware, melted in pots, 
made by side-lever, rotary, and semiautomatic processes, such as 
tableware, stemware, tmublers, jars, bar goods, soda-fountain glass- 
ware, hotel- and restaurant-supply glassware, kitchen glassware, 
stationers glassware, and other kindred groups, commonly recog- 
nized by the trade. 

L. Glassware Cutting and Decorating Di\ision (melting plants 
only) includes all cutting, acid etching, needle etching, sand blast- 
ing, or other embellishments added to glassware blanks by pro- 
ducers of blanks, excepting those provided for under Division A. 

M. Glassware Cutting and Decorating Division (nonmelting 
plants) includes all cutting, acid etching, needle etching, sand blast- 
ing or other embellishments added to glassware blanks by manu- 
facturers performing this function only, excepting those provided 
for under Division A. 

N. Miscellaneous Glassware Division includes all glass products 
not specifically defined under other Divisions in this article, such 
as glass novelties, glass specialties, private-mould articles. 

Article III — Maximum Hours 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours per week, as averaged over a period of thirteen (13) 
weeks except such employees as are expressly exempted from the 
provisions of this article, provided, however, that in no case shall 
any employees be permitted to work in excess of forty-eight (48) 
hours during any one (1) week. 

Sec. 2. Hours for Clerical and Office Emplotjees. — No person em- 
plo3^ed in clerical or office work shall be permitted to work in excess 
of forty (40) hours per week averaged over each four (4) weeks' 
period and not in excess of forty -eight (48) hours in any one week. 

Sec. 3. Exceptions as to Hours. — The provisions of this article 
shall not apply to traveling salesmen ; or to employees engaged in 
emergency repair work; or to persons employed in a managerial or 
executive capacity or on technical and laboratory staffs who earn 
thirty-five dollars ($35.00) per week, or more. 

Sec. 4. Watchmen. — No watchmen shall be permitted to work in 
excess of eighty-four (84) hours in any two weeks' period. 



H 



263 

Sec. 5. Fumacemen^ Gas Makers, Engineers, ami Pot Fillers. — 
No furnacemen, gas makers, engineers, and pot fillers shall be per- 
mitted to "work in excess of forty-two (42) hours per week. 

Sec. G. Where Skilled Employees Not Aca'dahle. AVherc skilled 

employees are not available, with the approval of the Code Au- 
thority and the Administrator, the maximum hours for skilled em- 
l)loyees may be in excess of the maximum hours herein specified 
for a period not to exceed three (3) months after the effective date 
of this Code. 

Sec. 7. Empl&yvi£nt hy Several Employers. — No employee shall 
be permitted to Avork for a total number of hours in excess of the 
number of hours herein prescribed, whether he be employed by one 
or more employers. 

Article IV^ — Minimum Wages 

Section 1. No employee shall be paid in any pay period less than at 
the rate of forty (40) cents per hour, except as otherwise herein 
provided, unless the hourly rate for the same class of work on July 
15, 1929, was less than forty (40) cents per hour, in Avhich case the 
minimum wage shall be not less than the wages paid in July, 1929, 
and in no case less than thirty (30) cents per hour. 

Sec. 2. Piecework Compenmtion, Minimum Wages. — This article 
establishes a minimum rate of pay Avhich shall apply, irrespective of 
whether an employee is actually compensated on time rate, piece- 
work performance, or other basis. 

Sec. 3. Learners. — No learner shall be paid in any pay period less 
than at the rate of eighty (80%) percent of the minimum rates of 
pay specified in this Code. Learners whose period of learning shall 
not exceed six (6) months shall be persons without previous experi- 
ence or employment in the Industry and the total number of such 
learners shall not exceed more than five (5%) percent of the total 
number of employees in any one plant. The provisions of this sec- 
tion shall not be so applied as to defeat the purposes and intent of the 
Act. 

Sec. 4. Wages ahove minimum.. — It is declared to be the policy of 
the members of the Industry to refrain from reducing the wage rates 
of employees whose hourly rates of wages through the first six 
months of 1933 were in excess of the minimum wages herein pre- 
scribed; also to maintain the weekly earnings of such employees, 
except in extreme cases where the hours have been drastically re- 
duced, notwithstanding that the maximum hours prescribed by this 
Code may be below the average weekly hours worked during the 
first six months of 1933. It is further declared as a policy that the 
hourly wages of this class of employees be adjusted upward in an 
equitable manner to effectuate this policy. The Division Adminis- 
trative Committees shall, within three (3) months after the effective 
date of this Code, recommend to the Code Authority a schedule of 
minimum rates of wages ; which shall be adjusted in such a manner 
as to provide against inequality between the various plants in the 
Industry, and the Code Authority shall thereupon file such schedules 
with the Administrator as an amendment to this Code and when 
approved by the President, shall have the same force and effect 

32789 ■• 313-75 34 2 



264 

as any other amendment or provision hereof. Nothing in this section 
shall be construed as affectmg any contractual relations with labor 
organizations. 

Sec. 5. Female Employees. — Female employees performing the 
same work as male employees and employed during the same work 
period, shall receive the same rates of pay as male employees. 

Sec. 6. Handicapped Persons. — A person whose earning capacity 
is limited because of age or physical or mental handicap may be 
employed on light w^ork at a wage below the minimum established 
by this Code if the employer obtains from the State authority desig- 
nated by the United States Department of Labor a certificate author- 
izing his employment at such wages and for such hours as shall be 
stated in the certificate. Each employer shall file with the Code 
Authority a list of all such persons employed by him. 

Article V — General Labor Peovisions 

Section 1. Child Labor. — No persons under sixteen (16) years of 
age shall be employed in the industry. No person under eighteen 
(18) years of age shall be employed at operations or occupations 
which are hazardous in nature or dangerous to health. In any State 
an employer shall be deemed to have complied with this provision as 
to age if he shall have on file a certificate or permit duly 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 re- 
quired as a condition of employment to join any comjiany union or to 
refrain from joining, organizing, or assisting a labor organization of 
his own choosing, and 

(c) That employers shall comply with the maxinunn hours of 
labor, minimum rates of pay, and other conditions of emplo3anent 
aj^proved or prescribed by the President. 

Sec. 3. Reclo^si'fication of Employees. — No employer shall reclas- 
sify employees or duties of occupations performed or engage in any 
other subterfuge for the purpose of defeating the purposes or pro- 
visions 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. State Laios. — 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}^, health, sanitary or general working conditions, than are 
imposed by this Code. 



265 

Sec. 6. Payment of Wages. — 'No employer shall make payment of 
any wages due other than in lawful currency or by negotiable check 
payable on demand. 

Sec. 7. Posting. — All employers shall post complete copies of this 
Code in conspicuous places accessible to employees. 

Article VI— Organization, Powers, and Duties of the Code 

Authority 

Section 1. Organhatiori and Constitution. — A Code Authority is 
liereby established to cooperate wdth the Administrator in the admin- 
istration of this Code and shall consist of not less than seven (7) and 
not more than fourteen (14) members to be chosen by the members 
of this industry by a majority vote, as defined in Section 7 of Arti- 
cle II. The Administrator in his discretion may appoint not more 
than three (3) additional members without vote, and without com- 
pensation from the industry, to serve for such period of time and 
to represent the Administrator or such group or groups as" he may 
designate. 

Sec. 2. Vacancies in the personnel of the Code Authority selected 
by the industry shall be filled through appointment by the Admin- 
istrator upon nomination of the Code Authority. 

Sec. 3. Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Code Authority 
shall impose no inecjuitable restrictions on membership, and shall 
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. 

Sec. 4. In order that the Code Authority shall at all times be 
representative of the industry and in other respects comply with the 
l^rovisions 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. 

Sec. 5. Members of the industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authoi-ity and to 
[)articipate in the selection of the members thereof either by becom- 
ing a member of the association and paying to the association the 
dues provided to be paid by a member in like standing or assenting 
to and complying with the requirements of tliis 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. G. Xothing contained in this Code shall constitute the mem- 
bers of the Code Authority partners for any purpose. Nor shall any 
member of tlie Code Authority be liable in any manner to anyone for 
any act of any other member, officer, agent, or employee of the Code 



266 

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

Sec. 7. Poiaers 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 administer the provisions of this Code and provide for the 
compliance of the industry with the provisions of the Act, and to 
propose and submit to the Administrator amendments and/or modi- 
fications of this Code, for the approval of the President. 

(b) To adopt bylaws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To obtain from members of the industry such information and 
reports as are required for the administration of the Code and to 
provide for submission to the staff by members of such information 
and reports as the Administrator may deem necessary for the pur- 
poses 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 individual reports shall be disclosed to any other mem- 
ber of the industry or any other party except to such governmental 
agencies as may be directed by the Administrator. 

(d) To designate the American Glassware Association and such 
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 Authorit}'' 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 designate the following divisions and subdivisions as the 
agency of the Code Authority for the administration of the Code in 
each division to the extent permitted under the provisions of this 
Code and of the Act : 

1. Illuminating Glassw^are Division. 

2. Technical and Industrial Glassware Division : 

Subdivision (a) Glass Parts for Electrical Devices. 
Subdivision (b) Glass Insulators and Insulation. 
Subdivision (c) Signal Glassware. 
Subdivision (d) Vacuum Glassware, 
Subdivision (e) Cooking Glassware. 

3. Lamp Chimneys and Lantern Globes Division. 

4. Scientific Glassware Division. 

5. Automatic Tumbler Glassware Division, 
G. Automatic Glassware Division. 

7. Automobile Glassware Division. 

8. Blown Table Glassavare Division, 

9. Blown Glassware Division. 

10. Pressed Glassware Division A, 

11. Pressed Glassware Division B. 

12. Glassware Cutting and Decorating Division (melting). 



267 

13. Glassware Cutting and Decorating Division (nonmelt- 

ing). 

14. Miscellaneous Glassware DmsioN. 

(a) Each Division or Subdivision may, by majority vote as 

defined in Article II, Section 7, elect a Division Ad- 
ministrative Committee. 

(b) Other Divisions or Subdivisions may be established, from 

time to time, by interested groups of manufacturei-s 
upon application to, and approval by, the Code Author- 
ity, provided that such application is authorized by 
seventy-five (75%) percent of the membership within 
a particular group. When approved by the Code 
Authority the names of such Divisions or Subdivisions 
shall he. submitted as an amendment to this Code, and 
if approved by the Administrator, shall be added to 
the list of those recognized in this section. 

(f) To make recommendations to the Administrator for the co- 
ordination of the administration of this Code with such other codes, 
if anv, as may be related to the industry. 

(g) 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. 

(h) 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. 

(i) 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. 

( j ) To provide that — 

(a) Any interested person shall have the right of complaint 

to the Code Authority and of a prompt hearing and 
decision thereon in respect to any decision, rule, regula- 
tion, or other course of action of any divisional adminis- 
trative committee. Such complaint must be filed in 
writing with the Code Authority within a reasonable 
period of time after said decision, rule, regulation, or 
course of action is issued or taken. The decision of such 
Code Authority may be appealed by any interested per- 
son to the Administrator, and 

(b) Any interested person shall have the right of appeal to 

the Administrator, under such rules and regulations as 

the Administrator may prescribe, in respect to any 

decision, rule, regulation, or other course of action, 

issued, or taken by the Code Authority. 

(k) To establish a system of cost finding which, after approval by 

the Administrator, shall be the basis used in determining the cost of 

any product of a member of the industry. 

Sec. 8. To provide that any decision, rule, regulation, order, or 
finding made or course of action followed pursuant to any provision 



268 

of this Code, may be cancelled or modified by the Administrator 
whenever he shall determine such action necessary to effectuate the 
provisions of the Act. 

Article VII — Price Lists, Discounts, Terjis 

Section 1. Each member of the Industry producing glassware in 
Division A and Division C, as defined in Article II, Section 9, shall 
upon the effective date of this Code, file witli the Staff a net price 
list or a price list and discount sheet, as the case may be, individually 
prepared by him on the basis of an adequate cost finding method, 
showing his current prices, or prices and discounts, and all terms 
and conditions of sale on all competitive articles of glassware pro- 
duced by him. Such price lists and terms and conditions of sale, 
so filed with the Staff, shall be open to inspection at all reasonable 
times by any interested party. Revised price lists may be filed from 
time to time thereafter with the Staff by any member producing 
glassware in the Division, provided, however, that such revisions 
shall be filed with the Staff at least ten (10) days in advance of the 
effective date thereof, and provided further that any other member 
producing glassware in either Division may file revisions of his net 
price list, or price lists and discount sheets, or terms and conditions 
of sale, to meet the revisions first filed which may become effective on 
the date when the revised price list or revised terms and conditions 
of sale first filed shall become effective. 

(a) No member producing glassware in either Division shall 
divulge to any customer or to any other member of the industry 
revisions in prices, or terms and conditions of sale, prior to the 
effective date of such revisions. 

(b) No member of the industry shall sell directly or indirectly 
or permit any agent to sell from warehouse or consigned stocks any 
products of the industry covered by the provisions of this section 
at a price lower, or at a discount greater, or on more favorable 
terms of payment or conditions of sale, than those provided in his 
current net price lists, or price lists and discount sheets. 

Article VIII — Trade Practice Rules 

Section 1, The following shall constitute trade practice rules for 
this industry: 

Rule 1. Inaccurate Advertimng. — 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 particu- 
lar, nor shall any member in any way misrepresent any goods (in- 
cluding, 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. False Billing. — No member of the industry shall know- 
ingly withhold from or insert in any quotation or invoice any state- 
ment that makes it inaccurate in any material particular. 

Rule 3. Inaccurate Lahelling. — No member of the industry shall 
bcand or mark or pack any goods in any manner which is intended 



269 

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. 

Rule 4. Inaccurate References to Connpctitors^ 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. 

Rule 5. Selling Beloio Cost. — No member of the industry shall 
sell any products below cost, as determined by an adequate cost 
finding system adopted by the Code Authority and approved by the 
Administrator, provided, however, that dropped lines, seconds or 
inventories which must be converted into cash may be disposed of 
in such a manner and on such terms and conditions as the division 
administrative committee may approve in order to move such 
products into buyers' hands. The Code Authority may, from time 
to time, require manufacturers to furnish to the Staff complete in- 
formation relating to their costs. Such information shall be deemed 
confidential and shall not be divulged to any manufacturer or other 
person not a member of the Staff of the Association except as may 
be required by the Administrator. 

Rule 6. Threats of Law Suits. — No member of the industry shall 
publish or circulate unjustified or unwarranted threats of legal pro- 
ceedings 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 7. Secret Rehates. — No member of the industry shall secretly 
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 privi- 
lege not extended to all customers of the same class, for the purpose 
of influencing a sale. 

Rule 8. Bribing Emplotjees. — No member of the industry shall 
give, permit to be given, or directly offer to give, anything of value 
for the purpose of influencing or rewarding the action of any em- 
ployee, agent, or representative of another in relation to the business 
of the employer of such employee, the principal of such agent, or 
the represented party, without the knowledge of such employer, 
principal, or party. Commercial bribery provisions shall not be 
construed to prohibit free and general distribution of articles com- 
monly used for advertising except so far as such articles are actually 
used for commercial bribery as hereinabove defined. 

Rule 9. Interference with Another'^s Contracts. — No member of 
the industry shall attempt to induce the breach of an existing con- 
tract between a competitor and his employee or customer or source 
of supi)ly ; nor shall any such member interfere with or obstruct the 
performance of such contractual duties or services. 

Rule 10. Coercion. — No member of the industry shall require that 
the purchase or lease of any goods be a prerequisite to the purchase 
or lease of any other goods. 

Rule 11. Blacklisting. — No member of the industry shall join or 
participate with other members of the industry who with such mem- 
bers constitute a substantial number of members of the industry or 



270 

who together control a substantial percent of the business in any 
specific product or products 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. 

Eule 12. Gifts^ Advertising^ Contrihutions^ etc. — No member of the 
industry shall give or offer to give any gifts in the form of money, 
advertising contributions, or otherwise to customers or groups of 
customers in connection with the sale of products or an inducement 
thereto by any scheme which involves lottery, misrepresentation, or 
fraud. 

Rule 13. Imitation of Design. — No member of the industry shall 
imitate a competitor's trade mark, trade name, or exclusive, or estab- 
lished design of product, or package, intended to identify the maker 
or vendor of said product, when the effect of such imitation may be 
to cause confusion in the minds of purchasers with reference to the 
identity of the maker thereof. 

Sec. 2. Additional Trade Practices. — Each division or subdivision 
of the industry may propose amendments relative to the filing of 
discounts, commissions, or brokerage fees, credit terms, package 
charges, freight equalization, and other terms of sale and/or other 
trade practice rules and submit the same to the Administrator 
through the Code Authority. 

Article IX — Control of Production 

Section 1. Members of the industry within fifteen (15) days after 
the effective date of this Code shall register with the Code Authority 
their present melting capacity of continuous tank equipment and 
tonnage capacity of furnaces and day tanks. 

Sec. 2. No person, partnership, association, corporation, or other 
form of enterprise engaged in the industry or for the purpose of 
engaging in the industry shall install any new or additional melting 
capacity, in whole or in part, after the effective date of this Code, 
until it has been established to the satisfaction of the Administrator, 
upon application, that such new or additional installations will not 
be in contravention of the purposes and intent of the Act, provided, 
however, that nothing in this Section shall be interpreted to prevent 
the consummation of any contract bona fidely executed prior to the 
approval of this Code or the replacement of obsolete or worn out 
equipment with equipment of identical, or less, melting capacity. 

Sec. 3. The Code Authority shall make recommendations to the 
Administrator regarding the granting or withholding of such 
certificates. 

Article X — Imports 

Section 1. The Code Authority shall make such investigations as 
may be found necessary to determine the effect of imports upon the 
industry. If it should be found that competitive articles are being 
imported into the United States in substantial quantities or in in- 
creasing ratio to domestic production or on such terms or under such 
conditions as to render ineffective or seriousl}!- to endanger the main- 



271 

tenance of the provisions of this Code, the Code Authority shall make 
application to the President for relief as provided in Section 3(e) 
of Title I of the National Industrial Recovery Act. 

Article XI — 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 
time to cancel or modify any order, approval, license, rule, or regula- 
tion issued under said Act. 

Sec. 2. This Code, except as to provisions required by the Act, 
may be modijfied 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 hearing as he 
shall specif}?^, and shall become effective upon approval of the 
Administrator, unless otherwise provided. 

Article XII — Monopolies, Etc. 

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

Article XIII — Effective Date 

This Code shall become effective fifteen (15) days after its ap- 
proval by the President. 

Approved Code No. 215. 
Registry No. 1022-04. 

o 



Approved Code No. 216 
CODE OF FAIR COMPETITION 

FOR THE 

POWDER PUFF INDUSTRY 

As Approved on January 17, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

POWDER PUFF INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Powder Puif Industry, and hearings hav- 
ing been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 
cliroctGCi to tlif^ PrGsiciGnt 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise, do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act ; and do hereby order that said Code of Fair 
Competition be and it is hereby approved, 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval Recommended : 
A. D. Whiteside, 

Division Administrator. 

Washington, D.C, 

January 17^ 103 If. 

30479° 313-7 34 (273) 



The President, 

The White House. 



INTRODUCTION 



Sir : This is the report of the Administrator on the application 
for, and pubhc hearing on, the Code of Fair Competition for the 
Powder Puff Industry, as proposed by the Powder Puff Manufac- 
turers Association. The public hearing was conducted in Washing- 
ton on December 4, 1933. Every person who requested an appear- 
ance was freely heard in accordance with statutory and regulatory 
requirements. 

There are 26 accredited manufacturers of powder puffs, 15 of 
which are members of the Association and account for approxi- 
mately 85 percent of the total volume of the industry. Two manu- 
facturers, not members of the Association, were present at the 



hearing. 



economical and statistical material 



The volume of sales in 1929, which was the peak year, was $6,000,- 
000, and the total employment was 3,000 employees. The estimated 
volume of sales for 1933 is set at $4,500,000, and the number of 
emplo3'ees at 2,000. With the operation of the President's Reemploy- 
ment Agreement, employment has increased until it is now estimated 
to be only 10 percent under the 1929 level. Although it cannot be 
reasonably expected that the current employment figures will be 
increased a great deal, there is every reason to believe that there 
will be an appreciable increase in the purchasing power represented, 
because it was not uncommon formerly to find minimum wages of 
$5, $7, and $8 per week and as little as $3 per week. Estimates are 
that factory employees have worked an average of 48 hours per week 
throughout the period 1929 to 1933. 

RESUME OF CODE PROVISIONS 

The Code establishes 40 hours as the basic week for production and 
3214 cents per hour as the minimum rate of pay. The principal 
exception to the basic 40-hour week is the specialized employee, 
termed the " cutter ", upon whose output depends the employment 
for the entire industry, who is permitted to work 100 hours per year 
in addition to the maximum of 40 hours. fl 

The principal exception to the minimum-wage provision of thirty 
cents per hour is the learner, but the period of learning is limited to 
only two weeks. This provision seems justifiable because the industry 
is prohibiting " home work " which formerly accounted for a sub- 
stantial part of the entire production. 

(274) 



275 

Trade practices are standard and are not in any respect objection- 
able in view of the chaotic competitive conditions which have 
obtained. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter ; 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purj)ose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanctions and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,(300 em- 
ployees and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant associa- 
tion is an industrial association truly representative of the aforesaid 
Industry; and that said association imposes no inequitable restric- 
tions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said 
Code. 

For these reasons, the Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dmiinistrator. 
January 17, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

POWDER PUFF INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Code of Fair 
Competition for the Powder Puff 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 " Powder Puff Industry " as used herein includes the 
manufacture and/or primary distribution of powder puffs and such 
branches or subdivisions thereof as may from time to time be in- 
cluded under the provisions of this Code, 

The term " employee " as used herein includes anyone engaged in 
the Industry in any capacity'' receiving compensation for his services, 
irrespective of the nature or method of payment of such compen- 
sation. 

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

The term " member of the Industry " includes anyone engaged in 
the Industry as above defined, either as an employer or on his own 
behalf. 

The 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, except as provided in Section 2 of this Article, 
shall be permitted to work in excess of 40 hours in any one week or 8 
hours in any twenty-four-hour period. 

2. Any male emjiloyee 18 years of age or over engaged in cutting 
materials shall be permitted to work 100 hours per year in addition 
to the maximum hours established in Section 1 of this Article, pro- 
vided that in no event shall such additional hours exceed 10 in any 
one week or 2 in any twenty-four-hour period ; and provided, further, 
that any employee working such additional hours shall be compen- 
sated at one and one-third times the normal rate. 

(276) 



277 

3. No employee shall be permitted to work more than 24 days in 
any twenty-eight day period. 

4. The provisions of this Article shall not apply to outside sales- 
men or to employees engaged in a managerial or executive capacity 
who earn not less than $85.00 per week. 

Article IV — ^AVages 

1. Xo employee shall be paid at less than the rate of 32i/4^ per hour, 
except that a learner shall be paid at not less than 240 per hour for 
a period of not over two weeks, provided, however, that no employee 
who has performed similar work for any employer in the Industry 
for a total of two weeks or more within the preceding two years 
shall be classed as a learner. 

2. This Article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time-rate, piecework, or 
other basis. 

3. No employee whose full time weekly hours for the four weeks 
ended Jmie 17. 1933, are reduced by the provisions of this Code by 
20% or less, shall have his or her full time weekly earnings reduced. 
No employee whose full time weekly hours are reduced by the pro- 
visions of this Code, in excess of 20%, shall have his or her said 
earnings reduced by more than 50% of the amount calculated by 
multiplying the reduction in hours in excess of 20% by the hourly 
rate. 

4. A person whose earning capacity is limited because of age or 
physical, or mental handicap may be emploj^ed on light work at a 
wage below the minimum established by this Code if the employer 
obtains from the State Authority designated by the United States 
Department of Labor a certificate authorizing his employment at such 
wages and for such hours as shall be stated in the certificate. Each 
employer shall file with the Code Authority a list of all such persons 
eniplo3'ed by him. 

Article V— General Labor Provisions 

1. Child Lahor Provision. — No person under 16 years of age shall 
be employed in the Industry nor anyone under 18 years of age at 
operations or occupations hazardous in nature or detrimental to 
health. The Code Authority shall submit to the Administrator be- 
fore January 1, 1934, a list of such occupations. In any State an 
employer shall be deemed to have complied with this provision if he 
shall have on file a certificate or permit duly issued by the authority 
in such State empowered to issue employment or age certificates or 
permits, showing that the employee is of the required age. 

2. Provisions From The Act. — (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. 



278 

- (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. Reclassification of Employees. — No employer shall reclassify 
employees or duties or occupations performed for the purpose of 
defeating the provisions of the Act or of this Code. 

4. Standards For Safety and Health. — Every employer shall pro- 
vide for the safety and health of his employees at the place and 
during the hours of their employment. Standards for safety and 
health shall be submitted by the Code Authority to the Adminis- 
trator within six (6) months after the effective date of this Code. 

5. State Laws. — No provisions in this Code shall supersede any 
law within any State wdiich imposes more stringent requirements 
on employers as to age of employees, w^ages, hours of work, or as to 
safety, health, or sanitary conditions, or insurance, or fire protection, 
or general working conditions, than are imposed by this Code. 

6. Posting. — Each employer shall post in conspicuous places in his 
plant, accessible to employees, copies of Articles III, IV, and V of 
this Code. 

7. Home Work. — All members of the Industry shall arrange to dis- 
continue the system of home work by February 1, 1934. If, how- 
ever, this provision works an unreasonable hardship on any em- 
ployer, he may, upon appeal to the Code Authority, and subject to 
the approval of the Administrator, be allowed additional time up to 
a total of two months in which to complete its abolishment. 

Article VI — Organization, Powers, and Duties or Code 

Authority 

organization 

1. To further effectuate the policies of the Act, the Code Authority 
is hereby constituted to administer this Code. 

2. The Code Authority shall consist of six individuals, or such 
other number as may be approved from time to time by the Admin- 
istrator, to be selected as hereinafter set forth, and of such additional 
members, without vote, as the Administrator, in his discretion, may 
appoint to represent such groups or governmental agencies as he may 
designate. 

The Code Authority members shall be selected as follows : 
Any member of the Industry who has qualified as provided in 
Section 5 of this Article shall be entitled to one vote in the nomina- 
tion and election of the members of the Code Authority. The pro- 
ponents of the Code shall arrange for such nomination and election 
within 90 days of the effective date of this Code. In the interim, 
the regularly elected officers of the Powder Puff Manufacturers' As- 
sociation shall fulfill the functions and discharge the duties of the 
Code Authority. 



279 

8. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 
by-laws, regulations, and any amendments when made thereto, 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. 

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 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, or any 
sub-Code Authority. 

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 assenting 
to and complying with the requirements of this Code and sustain- 
ing their reasonable share of the expense of preparation, presenta- 
tion, and administration of this Code. Such reasonable share of the 
expenses of administration shall be determined by the Code Author- 
ity, subject to review by the Administrator, on the basis of volume 
of business and/or such other factors as msiy be deemed equitable. 

6. 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 exercising reasonable diligence in the conduct of his 
duties hereuncler be liable to anyone for any action or omission to 
act under the Code, except for his own willful misfeasance or non- 
feasance. 

POWERS AND DUTIES 

7. The Code Authority shall have the following powers and duties 
in addition to those elsewhere provided in this Code : 

(a) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code, in accord- 
ance with the powers herein granted, and to submit the same to the 
Administrator for his approval together with true copies of any 
amendments or additions when made thereto, minutes of meetings 
when held, and such other information as to its activities as the 
Administrator may deem necessary to effect the purposes of the 
Act. 

(b) To obtain from members of the Industry for use of the Code 
Authority, for the Administrator in the administration and enforce- 
ment of the Code, and for the information of the President, reports 
based on periods of one, two, or four weeks, or multiples thereof, 
as soon as the necessary readjustment within the Industry can be 
made and to give assistance to members of the Industry in improv- 
ing methods, or in prescribing a uniform system of accounting and 



280 

reporting. All individual reports shall be kept confidential as to 
members of the Industry and only general summaries thereof may 
be published. 

(c) To receive complaints of violations of this Code, make investi- 
gations thereof, and bring to the attention of the Administrator 
recommendations and information relative thereto for such action 
as in his discretion the facts warrant. 

(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 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 responsibilties under this Code and that such 
trade associations and agencies shall at all times be subject to and 
comply with the provisions hereof. 

(e) To coordinate the administration of this Code with such other 
Codes, if any, as may be related to the Industry, or any subdivision 
thereof, and to delegate to any other administrative authority, with 
the approval of the Administrator, such powers as will promote joint 
and harmonious action upon matters of common interest. 

(f) To secure an equitable and proportionate payment of the 
expenses of maintaining the Code Authority and its activities from 
members of the Industry. 

(g) To cooperate with the Administrator in regulating the use of 
the N.R.A. Code Insignia solely by those employers who have 
assented to, and are complying with, this Code. 

(h) To establish or designate an agency on Planning and Fair 
Practice to which shall be added by the Administrator a representa- 
tive instructed to safeguard the interests of the consumer, which 
shall cooperate with the Code Authority in developing fair inter- 
and intra-trade practices and industrial planning, including the 
regularization of employment and stabilization of employees for the 
Industry. Any such recommended practices being amendments to 
the Code must be approved by the President. 

(i) To initiate, consider, and make recommendations for the 
modification or amendment of this Code. 

(j) The Code Authority may appoint and remove and fix the 
compensation of such employees, accountants, attorneys, and officers 
as it shall deem necessary or proper for the purpose of administering 
the Code. 

(k) If it shall be represented to the Administrator by any inter- 
ested party, or he shall determine upon his own motion, that any 
action of the Code Authority, or of any subdivision Code Authority, 
is unfair to any private interest or contrary to the public interest, 
the Administrator may require that such action be suspended for a 
period of not to exceed thirty (30) days to aflford an opportunity for 
investigation of the merits of such complaint and further considera- 
tion by the Code Authority pending final action, to be taken only 
upon approval by the Administrator. 

GENERAL ADMINISTRATI\"E PROVISION 

8. In addition to the information required to be submitted to the 
Code Authority as set forth in this Article there shall be furnished 



281 

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. 

9. An appeal from any action by the Code Authority affecting the 
rights of any employer or employee in the Industry may be taken to 
the Administrator. 

Akticle VII — Trade Practices 

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

1. False Mcm^king 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 Advertising. — The 
making or causing or knowingly permitting to be made or published 
any false, materially inaccurate, or deceptive statement by way of 
advertisement or otherwise, whether concerning the grade, quality, 
quantity, substance, character, nature, origin, size, finish, or prepa- 
ration of any product of the Industry, or the credit terms, values, 
policies, or services of any member of the Industry, or otherwise, 
having the tendency or capacity to mislead or deceive customers or 
prospective customers. 

3. Commercial Bribemj. — No member of the Industry shall give, 
permit to be given, or directly offer to give, anything of value for 
the purpose of influencing or rewarding the action of any employee, 
agent, or representative of another, in relation to the business of 
the employer of such employee, the principal of such agent or the 
represented party, without the knowledge of such employer, princi- 
pal, 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 
conunercial bribery as hereinabove defined. 

4. Interference with Contractual Relations. — Maliciously inducing 
or attempting to induce the breach of an existing oral or written 
contract between a competitor and his customer or source of supply, 
or interfering with or obstructing the performance of any such 
contractual duties or services. 

5. Secret Rebates. — The secret payment or allowance of rebates, 
refunds, commissions, credits, or unearned discounts, whether in 
the form of money or otherwise, or the secret extension to certain 
purchasers of special services or privileges not extended to all pur- 
chasers on like terms and conditions. 

6. Defamation. — The defamation of competitors by falsely im- 
puting to them dishonorable conduct, inability to perform contracts, 
questionable credit standing, or by other false representations or 
by the false disparagement of the grade or quality of their goods. 

7. Sales of Seconds. — The sale or offer for sale, at a reduced price, 
of rejects, factory seconds, or other defective merchandise by any 
member of the Industry in excess of 4% of his total production. 
Any such sale shall be reported to the Code Authority. Sales in 
excess of 4% may be permitted by the Code Authority upon a 



282 

showing that such restriction works an undue hardship upon a mem- 
ber of the Industry, but the granting of such permission must not 
allow such membev an unfair competitive advantage nor work to 
the detriment of other members. 

8. Processing Materials Furnished hy Others. — The sale of the 
service of processing materials furnished by others at less than the 
price arrived at by deducting the market cost of such materials, if 
purchased by the member concerned, from the price established by 
such member for the finished product. 

9. /Sales Below Cost. — To sell or offer to sell any product below its 
cost, except to meet the competition of a member of the Industry 
whose cost is lower. Each member of the Industry shall determine 
cost in accordance with a cost accounting system capable of applica- 
tion by all members to be formulated by the Code Authority and 
approved by the Administrator. 

10. Terms of Sale. — Terms shall not exceed 2% discount for cash 
within 10 days from date of invoice, or 30 days net, with the privi- 
lege of giving E.O.M. (end of months) dating. 

Article VIII — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions of subsection (b) of Section 10 of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, ap- 
proval, license, rule, or regulation issued under Title I of said Act 
and .specifically, but without limitation, to the right of the Presi- 
dent to cancel or modify his approval of this Code or any condi- 
tions imposed by him upon his approval thereof. 

2. This Code, except as to provisions required by the A<;t, may 
be modified on the basis of experience or changes in circumstances, 
such modification to be based upon application to the Administra- 
tor and .such notice and hearing as he shall specify, and to become 
effective on approval of the Administrator. 

Article IX — Monopolies 

No provision of this Code shall be so applied as to permit monopo- 
lies or monopolistic practices, or to eliminate, oppress, or discrimi- 
nate against small enterprises. 

Article X — Price Increases 

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

Article XI — Effective Date 

This Code shall become effective on the tenth day after date. 

Approved Code No. 216. 
Registry No. 299-1-20. 



Approved Code No. 217 
CODE OF FAIR COMPETITION 

rOR THE 

DENTAL LABORATORY INDUSTRY 

As Approved on January 22, 1934 



ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

DENTAL LABORATORY INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Dental Laboratory Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 
ciiT*poi^po to tlip Jl rpsiciGTiij * 

NOW, THEREFORE^ on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of said 
Title of said Act; and do hereby order that said Code of Fair Com- 
petition be and it is hereby approved, but upon the following 
condition : 

That the limitation of hours per week set forth in Section 2 
of Article III for clerical and office employees shall be forty 
instead of forty-four, except that it shall be forty-four in any 
case where there is only one such employee in a dental laboratory. 

HUGH S. JOHNSON, 

Administrator for Industrial Recovery. 

Approval Recommended : 
Geo. L. Berry, 

Division Administrator. 
Washington, D. C., January ^2, 1934. 

82288° 313-54 34 (283) 



The President, 

The 'White House. 

Sm: A public hearing on the Code of Fair Competition for the 
Dental Laboratory Industry of the United States, submitted by the 
National Dental Laboratories Association, located at 1010 Vermont 
Avenue, Washington, D.C., was conducted in Washington on the 
20th of October 1933, in accordance with the provisions of the Na- 
tional Industrial Recovery Act. The Association claims to represent 
in excess of eighty percent (80%) of the Industry. 

The maximum hours established by this Code are forty (40) per 
week for all employees, with the exception of laboratories employing 
one clerical or office worker in which case such worker is allowed 
forty-four (44) hours per week. One-man laboratories are also 
allowed forty-four (44) hours per week. Workers in the Dental Lab- 
oratory Industry were employed in 1929 on an average of fifty-two 
(52) hours per week and in 1933 approximately forty-seven (47) 
hours per week. To return employment to the 1929 level it would be 
necessary to establish a 37.6-hour week. However, from a practical 
angle a 40-hour week seems to be a most advisable basis for the re- 
employment of workers in this Industry. Through the establish- 
ment of a 40-hour week approximately 1,400 workers should benefit 
by reemployment. 

The minimum wages established in this Code are forty cents (40^) 
per hour, or $16.00 per week for all processing workers, and $14.00 
per week for office employees. The minirnum wage for apprentices 
IS $14.00 per week for a period of one year, and forty cents (400) 
per hour or $16.00 per week thereafter. Messengers not engaged in 
processing shall receive $10.00 per week. Provision is made for time 
and one third for all hours worked by processing employees in excess 
of forty (40) per week. 

Owing to the fact that so many conflicting figures were presented 
at the public hearing, bearing on the Dental Laboratory Industry, 
and because of the fact that no information regarding this Industry 
is available through governmental sources, it is impossible to give 
a very accurate or clear statistical picture of the Industry. 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter ; 

I find that— 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the pui-pose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 

(284) 



285 

in? unfair competitive practices, by promoting* the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by unproving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Industry normally emploj'^s not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant association 
is an industrial association truly representative of the aforesaid 
Industry; and that said association imposes no inequitable restric- 
tions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said 
Code. 

This Industry has cooperated in a most satisfactory manner with 
the Administrator in the preparation of this Code. From the evi- 
dence adduced during this hearing and from recommendations and 
reports of the various Advisory Boards, it is believed that this Code 
in its present form as approved represents an effective, practical, 
equitable solution for this Industry ; and for these reasons this Code 
has been approved. 
Kespectfully, 

Hugh S. Johnson, 

Administrator. 
January 22, 1934 



CODE OF FAIR COMPETITION 

FOR THE 

DENTAL LABORATORY 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 Dental Laboratory Industry, and shall 
be the standard of fair competition for such industry and binding 
upon every member thereof. 

Article II — DEnNrrioNS 

1. The term " Dental Laboratory Industry " as used herein shall 
mean the construction, repair, or adjustment, outside the oral cavity, 
in a dental laboratory, of dental prosthetic appliances, consisting 
of restorative dentures and corrective appliances made from impres> 
sions and/or casts, and such related branches or subdivisions as 
may from time to time be included under the provisions of this Code 
by the President of the United States, after such notice and hearing 
as he may prescribe, 

2. The term " Dental Laboratory " as used herein shall mean a 
workroom or rooms wherein dental prosthetic appliances are con- 
structed, repaired, or adjusted on order, instruction or prescription, 
for a dentist or another dental laboratory; excluding, however, the 
workroom or rooms operated as a part of the office or offices of a 
practicing dentist or dentists, and their bona fide employees engaged 
and employed therein in the construction, repair, or adjustment of 
dental prosthetic appliances solely for the personal patients of such 
dentist or dentists and not for the patients of any other dentist or 
dentists. 

3. The term " home work " as used herein shall mean the perform- 
ance of the work of this industry in the home or elsewhere outside of 
the work room or rooms of a dentist or dentists, a dental laboratory, 
or a one-man dental laboratory as herein defined. 

4. The temi " member of the industry " includes, but without limi- 
tation, any individual, partnership, association, corporation, or other 
form of enterp"rise engaged in the industry, either as an employer 
or on his or its own behalf. 

5. The term " employee " as used herein shall include any and all 
persons engaged in the industi-y as herein defined however compen- 
sated, including any person when engaged in processing and except- 
ing executives and employers when not engaged in processing, 

(28G) 



287 

6. The terms " price or prices " as used herein shall mean the 
charges for the products ajid/or services of the industry. 

7. The term " one-man laboratory " as used herein shall mean a 
dental laboratory in which only one person is engaged in processing, 
whether or not any messengers, office, or other nonprocessing em- 
ployees are employed. 

8. The term " apprentice " as used herein shall mean any person 
haAdng less than one year's experience in the industry as defined 
above, who is employed as a learner or beginner. 

9. The term " processing " as used herein shall mean performing 
any step in the construction, adjustment, or repair of any product 
of this industry. 

10. The terms "Act " and "Administrator " as used herein mean 
respectively Title I of the National Industrial Recovery Act, and 
the Administrator for Industrial Recovery, 

Artiole III — Hours 

MAXIMUM HOURS 

Section 1. No employee, engaged in whole or in part in process- 
ing, shall be permitted to work in excess of forty (40) hours in any 
one week except as herein otherwise provided. A normal workday 
shall not exceed eight (8) hours. 

Sec. 2. No person employed in clerical, office, or other nonprocess- 
ing work shall be permitted to work in excess of forty-four (44) 
hours in any one week, A normal workday shall not exceed nine 
(9) hours,^ 

EXCEPTIONS TO HOURS 

Sec. 3. A one-man laboratory shall not engage in processing to 
exceed forty-four (44) hours per week. 

Sec. 4. The provisions of this Article shall not apply to outside 
salesmen, or to persons employed in a managerial or executive 
capacit}^ who do not engage in processing and who earn thirty-five 
dollars ($35.00) or more per week. 

Sec. 5. Processing employees, including the operator of a one-man 
laboratory, shall be allowed to work twenty-five (25) hours in excess 
of the maximum hours established in Sections 1 and 3 of this Article 
during each half of the calendar year, provided, however, that no 
such employee shall work more than forty-eight (48) hours in any 
one week and provided further that a record of all hours of over- 
time shall be posted in the laboratory and reported as required by 
the Code Authority. 

employment by SEi'ERAIi EMPLOYERS 

Sec. 6. No employee shall be permitted to work, for a total num- 
ber of hours in excess of the number of hours herein prescribed, 
whether he be employed by one or more employers. 

^ Modified by paragraph 2 of order approving this Code. 



288 

OPERATING HOURS OF A LABORATORY 

Seo. 7. No dental laboratory shall be operated or remain open in 
ex(5ess of fifty-two (52) hours in any one week; nor shall any such 
laboratory be operated or open for the purpose of performing any 
business function on Sunday or before 7 : 00 A.M. on any week day, 
or later than 7 : 00 P.M. on Monday to Friday, inclusive, or later 
than 1 : 30 P.M. on Saturday. 

(a) Uniform holiday closing, and uniform opening and closing 
hours between the hours herein prescribed, may be established in any 
metropolitan area, city, or town by a majority vote of all laboratories 
located within such areas and when approved by the Code Authority 
shall be binding upon all laboratories in such area. 

(b) Each Dental laboratory shall post in an accessible place in its 
laboratory a schedule of its operating hours and a schedule of the 
working hours of its employees, and file copies and/or reports of 
same as the Code Authority shall designate. 

Article IV — Wages 

MINIMUM WAGES 

Section 1. No employee shall be paid in any pay period less than 
at the rate of forty cents (400) per hour or sixteen dollars ($16.00) 
per week except as otherwise herein provided. 

(a) Apprentices shall be paid not less than fourteen dollars 
($14.00) per week for a period of one (1) year, and thereafter at not 
less than the rate of forty cents (400) per hour. 

(b) Messengers not engaged in processing shall be paid not less 
than ten dollars ($10.00) per week. 

(c) Office and clerical help shall be paid not less than the rate of 
fourteen dollars ($14.00) per week. 

(d) Part-time employees shall be compensated for the work per- 
formed by them at not less than the minimum rates herein established. 

PIECEWORK COMPENSATION MINIMUM WAGES 

Sec. 2. This article establishes a minimum rate of pay which shall 
apply, irrespective of whether an employee is actually compensated 
on a time rate, piecework performance or other basis. 

WAGES ABOVE MINIMUM 

Sec. 3. It is the policy of the members of this industry to refrain 
from reducing the compensation for employment, which compensa- 
tion was, prior to June 16, 1933, in excess of the minimum wages 
herein set forth, notwithstanding that the hours of work in such 
employment may be reduced ; and all members of this industry shall 
endeavor to increase the pay of all employees, in excess of the mini- 
mum wage as herein set forth, by an equitable adjustment of all pay 
schedules. 



289 

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

Sec. 5. Time and one third shall be paid processing employees for 
all hours in excess of forty (40) hours per week. 

Sec. 6. The provisions of this iVrticle shall not apply to outside 
salesmen, or to persons employed in a managerial or executive ca- 
pacity who do not engage in processing. 

Article V — General. Labor PRO^^SION8 

CHILD LABOR 

Section" 1. No person under sixteen (16) years of age shall be em- 
ployed in the industry. No person imder eighteen (18) years of 
age shall be employed at operations or occupations which are hazard- 
ous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator within sixty (60) days after the ap- 
proval of this Code a list of such operations or occupations. In any 
State an employer shall be deemed to have complied with this pro- 
vision as to age if he shall have on file a certificate or permit duly 
signed 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. 

PROVISIONS FROM THE ACT 

Sec. 2. 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 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. 

RECLASSIFICATION OF EMPLOYEES 

Sec. 3. Employers shall not reclassify employees or duties of occu- 
pations performed by employees so as to defeat the purposes of the 
Act. 

STANDARDS FOE SAFETY AND HEALTH 

Sec. 4. Every employer shall make reasonable provision for the 
safety and health of his employees at the place and dui'ing the hours 
of their employment. 



290 



STATE L.AW8 



Sec. 5. No provision in this Code shall supersede any State or 
Federal law which imposes more stringent requirements as to age 
of emplo3^ees, wages, hours of work, or as to safety, health, sanitary 
or general working conditions, than are imposed by this Code. 



POSTING 

Sec. 6. All employers shall post and keep posted complete copies 
of the wage and hour and general labor provisions of this Code in 
conspicuous places accessible to employees. 

APPRENTICES 

Sec. 7. No laboratory shall employ apprentices in a ratio greater 
than one to every four processing employees or major fraction 
thereof, provided, however, that any laboratory employing four or 
less processing employees may employ one apprentice. Apprentices 
shall not be counted as processing employees in the determination 
of this ratio. 

SANITARY requirements 

Sec. 8. No room or apartment in a tenement or dwelling house 
used for living, eating or sleeping purposes, shall be used for the 
purpose of conducting a dental laboratory, unless such laboratory 
complies with sanitary requirements as established by the Code 
Authority, and approved by the Administrator. Any action of the 
Code Authority with respect to this provision shall be subject to 
the review and disapproval of the Administrator. 

(a) Every part of the dental laboratory shall be kept clean and 
shall be kept free from accumulation of dirt, filth, rubbish in and 
about the same. The entire premises shall be well drained and the 
plumbing thereof at all times kept in proper repair and in a clean 
and sanitary condition. 

student — learner work 

Seo. 9. Work done by students and learners shall not be sold 
unless such students or learners are paid for this work in compli- 
ance with the provisions of the Code, provided, however, that this 
Erovision shall not apply to work done by students of any bona 
de dental school or college or to Avork done bv students and learners 
under existing contracts executed in compliance with the law of the 
State in which such contract was made. 

HOME WORK 

Sec. 10. All home work in this industry is hereby prohibited. 

Article VI — Administration 
Organization, Powers, and Duties of the Code Authority. 



1 



291 



ORGAXIZATION AND CONSTITUTION 



Section 1. A Code Authority is hereby established to cooperate 
with the Adimnistrator in the administration of this code and shall 
consist of fifteen (15) members to be chosen by the industry through 
a fair method of selection and approved by the Administrator. The 
Administrator in his discretion may appoint not more than three 
additional members without vote and without compensation from 
the industry, to serve for such period of time and to represent the 
Administrator or such group or groups as he may designate. 

(a) The Code Authority shall be selected as follows: One member 
to be selected from the members of the industry in each of the twelve 
(12) Regions covering the entire United States, and three (3) mem- 
bers at large, to be selected from the entire industry. 

(b) In order to assist the Code Authority in the Administration 
of this code, the National Dental Laboratories Association is hereby 
designated as the administrative agency of the Code Authority and 
as the agency to collect such statistics and information, subject to 
the disapproval of the Administrator, as may be pertinent and 
required for the purposes of this code. 

(c) Regional Sub-Code Authorities are hereby established to fur- 
ther assist the Code Authority, and shall consist of five (5) members 
nominated by and from members of the industry by a fair method 
of selection in each region and appointed by the Administrator. For 
the purposes of this Code, the Regional divisions of the industry 
shall be as follows: 

Region 1. Maine, New Hampshire, Vermont, Massachusetts, Con- 
necticut, Rhode Island. 

Region 2. New York. 

Region 3. Pennsylvania, New Jersey. 

Region 4. West Virginia, Virginia, Delaware, Maryland, District 
of Columbia. 

Region 5. Tennessee, North Carolina, South Carolina, Georgia, 
Florida, Alabama, and Mississippi. 

Region 6. Kentucky, Indiana, Ohio, and the Southern peninsula 
of Michigan. 

Region 7. Wisconsin, Illinois, and the Northern peninsula of 
Michigan. 

Region 8. Missouri, Ai'kansas, Louisiana. 

Region 9. Iowa, Minnesota, Nebraska, North Dakota, South 
Dakota. 

Region 10. Kansas, Oklahoma, Texas, New Mexico, Colorado. 

Region 11. California, Nevada, Utah, Arizona. 

Region 12. Washington, Oregon, Idaho, Montana, Wyoming. 

Sec. 2. Vacancies in the personnel of the Code Authority selected 
by the industry shall be filled pending a selection as provided for 
the appointment of the original members, through appointment by 
the Administrator upon nomination of the Code Authority. 

(a) In the event of the failure of any region to select its Regional 
Sub-Code Authority or any member or members thereof within the 
time specified by the Code Authority, or in the event of any va- 
cancy occurring therein, the Code Authority may make appoint- 



292 

ments to fill sncli vacancies pending the selection of qualified suc- 
cessors as provided herein. 

Sec. 3. Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Code Authority 
shall impose no inequitable restrictions on membership, and shall 
submit to the Administrator and to the Code Authority true copies 
of its articles of association, by-laws, 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. 

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 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 
he may deem necessary under the circumstances. 

Sec. 5. Members oi the industry shall be entitled to participate 
in and share the benefits of the activities of the Code Authority and 
Regional Sub-Code Authorities and participate in the selection of 
the members thereof and in any revisions or amendments to this 
code by assenting to and complying with the requirements of this 
code and sustaining their reasonable share of the expenses of ad- 
ministration or by becoming members of the National Dental Lab- 
oratories Association and paying to the Code Authority such pro- 
portionate part of the cost of administration as the Code Authority, 
subject to the Administrator's approval, shall prescribe as fair and 
equitable. 

(a) Any member of the industry shall be eligible for member- 
ship in the National Dental Laboratories Association and in any 
regional, state, or local association directly or indirectly participat- 
ing in the selection or activities of the Code Authority and/or Re- 
gional Sub- Code Authority, upon compliance with the provisions 
of the by-laws relating to membership, provided that any person 
applying for such membership shall, in addition to the payment of 
such dues as are applicable in his case in accordance with the estab- 
lished rate or schedule of dues, accept a reasonable and equitable 
share of the cost of administration. 

Sec. 6. Nothing contained in this code shall constitute the mem- 
bers of the Code Authority or Regional Sub-Code Authorities part- 
ners for any purpose. Nor shall any member of the Code Authority 
or Regional Sub-Code Authorities 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 anj member of the Code Author- 
ity or Regional Sub-Code Authorities, exercising reasonable dili- 
gence in the conduct of his duties hereunder, be liable to anyone for 
any action or any omission to act under this Code, except for liis own 
willful misfeasance or nonfeasance. 

POWERS AND duties 

Sec. 7. The Code Authority shall have the following powers and 
duties to the extent permitted by the Act, subject to the review and 
disapproval of the Administrator. 



293 

(a) To administer the provisions of this Code and provide for 
the compliance of the industry with the provisions of tlie Act, and 
to propose and submit to the Administrator, for his approval, 
amendments and/or modification of this code. 

(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, 
statistics, and reports as are required for the administration of the 
Code and to provide for submission by members of such information, 
statistics and reports as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the Act, which infor- 
mation, statistics, and reports shall be submitted to such administra- 
tive and/or government agencies as the Administrator may desig- 
nate; 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 person or agency 
except as may be directed by the Administrator, or except as it may 
be deemed necessary to divulge such information to enforce the ob- 
servance of the provisions of this code. Any person conducting a 
dental laboratory shall furnish promptly to the Code Authority the 
information required by it, in such form as may be specified. 

(d) Within a reasonable time after the effective date of this code 
to provide for the establishment and promulgation of : 

(1) A uniform system of billing which shall be complied with 
and adhered to by all membere of this industry. 

(2) A uniform method of cost accounting and/or cost formulae, 
which, when approved by the Administrator shall be used in the 
detennination of cost by all members of this industry. 

(e) To use the National Dental Laboratories Association and 
such regional, state, and local associations and other agencies as it 
deems proper for the carrying out of any of its acti\'ities 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 cooperate with the Administrator in regulating the use 
of any N.R.A. insignia solely by those members of the industry 
who have assented to, and are complying with, this code. 

(h) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the industry in their relations 
with each other or with other industries and to recommend to the 
Administrator measures for industrial planning, including stabiliza- 
tion of employment. 

Article YII — Unfair Trade Practices 

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

1. Guaranfees. — No member of this industry shall guarantee any 
product of this industry, except in accordance with the rules and 



294 

regulations concerning guarantees, established by the Code Author- 
ity and approved by the Administrator. 

2. False Marh'mg or Branding. — No member of this industry 
shall mark or brand any product of the industry in any manner 
having a tendency to mislead or deceive customers, or prospective 
customers, whether as to the grade, quality, quantity, substance, con- 
struction, nature, origin, size, finish, or preparation of such product. 

3. Commercial Bribery. — No member of the industry shall give, 
permit to be given, or directly oifer to give, anything of value for 
the purpose of influencing or rewarding the action of any em- 
ployee, 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 
construed to prohibit free and general distribution of articles com- 
monly used for advertising, except so far as such articles are actu- 
ally used for commercial bribery as hereinabove defined. 

4. Espionage of Co^iripetitors. — No member of this industry shall 
attempt to secure 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. 

5. Interference with Contractuai Relatio-ns. — No member of this 
industry shall attempt to induce the breach of an existing contract 
between a competitor and his employee or customer or source of sup- 
ply; nor shall any such member interfere with or obstruct the 
performance of such contractual duties or services, 

6. Substitution of Matenals. — No member of this industry shall 
use, submit, or bill any material, superior or inferior in quality to 
that specified by the purchaser of any dental laboratory product, 
thereby effecting a price discrimination. 

7. Rehates.~^o member of the industry shall offer or make any 
payment or allowance of a rebate, refund, commission, credit, dis- 
count, or excess allowance, whether in the form of money or other- 
wise, nor shall a member of the industry offer or extend to any 
customer any special service or privilege not extended to all customers 
of the same class. 

8. Defannatian. — No member of this industry shall attempt to 
defame competitors by falsely imputing to tliem dishonorable con- 
duct, inability toi perform contracts, questionable credit standing, or 
by other false representations, or by the false disparagement of the 
grade or quality of their goods. 

9. Conspiraxiy. — No member of this industry shall aid or abet any 
person in the dental laboratory industry in any unfair competitive 
practice. 

10. Misrepresentation. — No member of the industry shall bill or 
invoice or offer to sell any dental laboratory product, under any 
description which does not fully describe such dental laboratory 
product in terms customarily used in the dental laboratory industry, 
or in violation of the uniform system of billing when adopted for the 
industry. 

11. Threats of Law Suits. — No member of the industry shall pub- 
lish or circulate unjustfied or unwarranted threats of legal pro- 



295 

ceedin<]:s 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. 

12. Samples. — No member of this industry shall bill or sell samples 
of dental laboratory products for less than the cost of production; 
nor employ free goods or free samples or free deals in connection 
with a sales transaction, Notliing in this provision shall be so 
construed as to prohibit the bona fide loan of samples. 

13. Underselling Claims. — No member of the industry shall use or 
participate in the publishing or broadcasting of any statement or rep- 
resentation which lays claim to a policy or continuing practice of 
generally underselling competitors. 

14. False Invoicing. — 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. 

15. Acceptance of Work. — No member of this industry shall accept 
any dental restoration for adjustment, repair, or processing, except 
from a dentist or from another dental laboratory. 

Article VIII — Kegtjlations as to Costs, Price Lists, Terms, Etc. 

1. Costs. — No member of the industry shall sell, or offer to sell, the 
services or products of his laboratory below cost, based on normal 
operations, computed in accordance with a uniform method of cost 
accounting and/or cost formulae adopted by the Code Authority and 
approved by the Administrator. 

2. Price Lists. — Each member of the industry shall within fifteen 
^15) days after the effective date of this code file with the Code 
Authority and otherwise as it shall direct, and with his Regional Sub- 
Code Authority, his net current price lists to become effective on the 
date filed. 

(a) No member of the industry shall thereafter sell, or offer to sell, 
at prices other than the prices contained in his price list so ^led. 

(b) Revised price lists may, ten (10) days prior to the effective 
date thereof, be filed, from time to time, in the same manner as 
provided for the filing of original price lists. 

(c) Upon complaint or on its own initiative, the Code Authority 
may require the listing laboratory to file its cost data forthwith and 
if the price of any item in any such price list is determined by the 
Code Authority to be improper, in that it does not comply with the 
provisions of the Code, new prices, based upon the uniform metliod 
of cost accounting and/or cost formulae which do comply with the 
provisions of this code may be required by the Code Authority to 
be filed within ten (10) days after notice thereof to the listing 
laboratory. 

3. Terms and Discounts. — (a) All quotations and bills or invoices 
for products and ser\aces of dental laboratories shall be made only 
upon the basis of net settlements due on or before the first of the 
following month and paj^able on or before the fifteenth day thereof. 

(b) No member of the industry shall offer or allow any cash or 
trade discount; provided that no provision of this code shall be 
interpreted to prevent the extension between laboratories of courtesy 
discounts applying to the products of the industry; and provided 



296 

further, that the purchasing laboratory shall not sell such produotg 
at less than the producing laboratory's prices thereof as filed with 
the Code Authority. 

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 
time to cancel or modify any order, approval, license, rule, or 
regTilation issued under said Act. 

Sec. 2. This Code, except as to provisions required by the Act, 
may be modified or amended on the basis of experience or changes 
in circumstances, such modifications or amendments to be based 
upon application by the Code Authority to the Administrator and 
such notice and hearing as he shall specif}^ to become effective on 
approval of the Administrator, unless otherwise provided. 

Article X — ^Monopolies 

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

Article XI 

1. Whereas the policy of the Act to increase real purchasing power 
will be made more difficult of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price 
increases except such as may be required to meet individual cost 
should be delayed, but when made such increases should, so far as 
possible, be limited to actual additional increases in the seller's costs. 

Article XII 

1. This Code shall become effective on the tenth day after its 
approval by the Administrator. 

Approved Code No. 217 
Registry No. 1617-09 

o 



Approved Code No. 218 
CODE OF FAIR COMPETITION 

FOR THE 

SLATE INDUSTRY 

As Approved on January 22, 1934 



ORDER 
APPROVING CODE FOR FAIR COMPETITION 

FOR THE 

SLATE INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Slate Industry, and hearings having been 
duly held thereon and the annexed report on said Code, containing 
findings Avith respect thereto, having been made and directed to the 
President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise, do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of said 
Title of said Act; and do hereby order that said Code of Fair Com- 
petition be and it is hereby approved. 

HUGH S. JOHNSON, 

Adnvlmstrator for IndustHal Recovery. 

Approval Recommended : 
W. A. Harbiman, 

Div ision A dininistrator. 

Washington, D.C, January 22. lOSIf.. 

29280° 296-110 34 (2<>7) 



The President, 

The White House. 

Sir : This is a report on the Code of Fair Competition for the 
Slate Industry, a hearing on which was conducted in Washington 
on the ninth of November, 1933, in accordance with the provisions 
of the National Industrial Recovery Act. 

PROVISIONS OF THE CODE AS TO WAGES AND HOURS 

This Code provides for a work week of not more than forty hours, 
averaged over a six months' period, with limits of forty-eight hours 
for any week, six days for any week, and nine hours for any day. 
The following exceptions are permitted : 

(a) Employees engaged on emergency maintenance and repair 
work, but they will receive time and one third for overtime; 

(b) Slateloaders, shipping clerks, truck drivers, and watchmen, 
who are limited to fifty-six hours per week; 

(c) Those engaged in managerial or executive capacity, who re- 
ceive not less than $30.00 per week ; and 

(d) Travelling salesmen. 

The maxinnim hours apply to the total time of each employee, 
whether working for one or several employers. 

This Code provides for a minimum w^age of 35 cents per hour, 
except in Virginia, the only southern state producing slate, where 
the minimum is 30 cents. Watchmen are excepted, but must be 
jDaid at least $15.00 per week, and with the permission of the proper 
authorities, handicapped persons may be excepted. These minimum 
wages apply whether an employee is compensated on a time rate, 
piecework, or other basis. Wages must be paid monthly or oftener 
and provision is made for equitable readjustment of wages above the 
minimum. 

No person under eighteen years of age may be emplo3^ed. Em- 
ployers must endeavor to provide continuity of employment and for 
the safety and health of their employees. 

ECONOMIC EFFECTS OF THE CODE 

The value of the products covered by the Code fell from a peak 
of over nine million dollars in 1925 to eight and a half in 1929 and 
to less than two million dollars in 1932. The Slate Industry is 
heavily burdened by depression, by stagnant construction, by severe 
losses in past years, and by rival materials. Employment has 
dropped to about half the peak figure. 

(298) 



299 

Due to these conditions, it is doubtful whether adoption of this 
Code will result in a large immediate increase in employment, but 
it is hoped that the stabilizing effect of the marketing provisions 
will protect the present two thousand employees and with increas- 
ing business permit of some increase. 

The minimum wages are approximately double the present mini- 
ma, and an increase in pay rolls of 25% to 30% is estimated by 
the sponsors of the Code. 

nNDINGS 

The Assistant Deputy Administrator in his final report to me on 
said Code having found as herein set forth and on the basis of all 
the proceedings in this matter : 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management ifiider adequate governmental sanctions and super- 
vision, by eliminating unfair competitive practices, by promoting the 
fullest possible utilization of the present productive capacity of in- 
dustries, by avoiding undue restriction of production (except as may 
be temporarily required), by increasing the consumption of industrial 
and agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50.000 em- 
ployees ; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the 
pertinent provisions of said Title of said Act, including without 
limitation Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof; and that the applicant 
association is an industrial association truly representative of the 
aforesaid industry ; and that said association imposes no inequitable 
restrictions on admission to membership therein. 



300 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 
not been deprived of the right to be heard prior to approval of 
said Code. 

For these reasons, therefore, I have approved this Code. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
January 22, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

SLATE INDUSTRY 

Article I — Purpose 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act and for the purpose of conserving a natural resource in 
rehabilitating the Slate Industry and enabling it to do its part toveard 
the restoration and maintenance of highest practical degree of public 
welfare, the following provisions are established as a Code of Fair 
Competition for that Industry, and shall be the standards of fair 
competition for that Industry and binding upon every member 
thereof. 

Article II — Definitions 

Section 1. The term " Slate Industry " or " Industry " as used 
herein means and includes the quarrying and selling, the processing 
and selling and/or the selling by agencies set up and controlled by 
a quarrier or group of quarriers of slate and slate products (excepting 
slate granules) and such related branches or subdivisions thereof as 
may from time to time be included iinder the provisions of this 
Code by the President after such notice and hearing as he may 
prescribe. 

Sec. 2. Division of Industry. The terms " Division of Industry '' 
or ''Division '■ shall mean and include the following: (1) The Slate 
Roofing Division, which deals with slate used for roofing purposes; 
(2) The Structural and Electrical Division, which deals with slate 
used for structural and electrical purposes; (3) The Blackboard 
Slate Division, which deals with slate used for blackboard purposes, 
and also such other divisions as may be hereafter established. 

Sec. 3. Regions. The term " Region " shall mean and include 
the followinfr areas: (1) The Maine region, Avhich shall include the 
State of Maine; (2) The New York-Vermont region, which shall 
include the States of New York and Vermont; (3) The Pennsyl- 
vania-Maryland region, which shall include the States of Pennsyl- 
vania and Maryland, and (4) The Virginia region, which shall 
include the State of Virginia; (5) other regions or areas in which 
quarries are worked or may be hereafter developed shall be included 
hereunder. 

Sec. 4. District. The term " District '" shall mean and include a 
locality in which one or more quarries are working the same or 
adjacent veins producing substantially the same kind of slate. 

(301) 



302 

Sec. 5. The term " employee " as used herein includes anyone ex- 
cept a member of the industry engaged in the Slate Industry in any 
capacity receiving compensation for his services, irrespective of the 
nature or method of payment of such compensation. 

Sec. G. The term " emplo3''er " as used herein includes anj'^one by 
whom any such employee is compensated or employed. 

Sec. 7. The term " member of the industry " includes anyone en- 
gaged in the Slate Industry as above defined, either as an employer 
or on his or its own behalf. 

Sec. 8. The terms " President ", "Act ", and "Administrator " as 
used herein shall mean, respectively, the President of the United 
States, the National Industrial Recovery Act, and the Administrator 
of saicl Act. 

Sec. 9. The terms " Code Authority ", " Division Committee ", and 
" District and Regional Committees " as used herein shall mean the 
administrative agency or agencies established pursuant to this Code 
as hereinafter provided. 

Sec. 10. The term " member of the Code " includes any member of 
the Industry who shall expressly signify assent to this Code. 

Article III — Hours 

Section 1. Maximum Hours. No employee shall be permitted to 
work in excess of forty (40) hours per week averaged over any six 
(6) months' period, forty-five (45) hours in any one (1) week, nine 
(9) hours in any one (1) day, or six (6) days in any seven (7) day 
])eriod except as herein provided. 

Sec. 2. Exceptions. These maximum hours fixed in Section (1) 
.shall not apply to : 

(a) Employees on emergency maintenance or emergency repair 
work, involving break-downs or protection of life or property, but 
such emploj^ees shall be paid one and one third (l^/s) times the 
hourly rates for time in excess of nine (9) hours per day or forty- 
five (45) hours per week. 

(b) Slateloaders, shipping clerks, truck drivers, firemen, and 
watchmen, provided, however, that they shall not be permitted to 
work in excess of fifty-six (56) hours in any one (1) week. 

(c) Persons engaged in managerial or executive capacity who 
receive not less than thirty dollars ($30.00) per week. 

(d) Persons engaged as traveling salesmen. 

Sec. 3. Combined Time. No employer shall knowingly permit 
any emploj'ee to Avork for any time which when totaled with that 
already performed with another employer or employers exceeds the 
maximum permitted herein. 

Article IV — ^Wages 

Section 1. Minimum wage. No employee except watchmen shall 
be paid at less than the rate of thirty-five cents (35iji) an hour, 
except that in Virginia employees may be paid at not less than the 
rate of thirty cents (30^) an hour. 

Sec. 2. Piecework. This article establishes a minimum rate of pay 
regardless of whether an employee is compensated on a time rate, 
piecework or other basis. 



303 

Sec. 3. Readjustment of Wages. Unless such readjustment has 
already been made because of the operation of the President's Ke- 
employment Agreement, the wage rates of all employees receiving 
more than the minimum rates prescribed above, but less than thirty- 
five dollars ($35.00) per week, shall be equitably readjusted. 

Sec. 4. Watchmen. Watchmen shall not be paid less than at a 
rate of fifteen dollars ($15.00) per week. 

Sec. 5. Payment. All wages shall be paid in lawful currency or 
by negotiable check, at least once a month. These wages shall be 
exempt from any payments for pensions, insurance or sick benefits, 
other than those voluntarily paid by the w^age earners, or required 
by law. 

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 desig- 
nated by the United States Department of Labor a certificate author- 
izing his emploj'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. 

Article V — General Labor Provisions 

Section. 1. Rights of Labor, (a) Employees shall have the right 
to organize and bargain collectively through representatives of their 
own choosing, and shall be free from 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 
actiWties for the purpose of collective bargaining or other mutual 
aid or protection. 

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

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

Sec. 2. Child Labor. Employers shall not employ any persons 
under eighteen (18) years of age. 

Sec. 3. State Laws. Within each state no provisions of this Code 
shall supersede any laws of such state imposing more stringent re- 
quirements regulating the age of employees, wages, hours of work, 
or health, fire, or general working conditions, than under the Code. 

Sec. 4. Company Homes and Stores. Employees other than 
maintenance or supervisory men or those necessary to protect the 
property shall not be required as a condition of employment to 
live in homes rented from the employer or to trade at the store 
specified by the employer. 

Sec. 5. Safety and Health. Each employer will use his best en- 
deavor to so administer work in his charge as to provide a maxi- 
mmu practicable continuity of employment of his employees, and 
for their safety and health during the hours of their employment. 



304 

Sec. 6. Reclassification. No employer shall reclassify employees 
or duties of occupations performed or engage in any other subter- 
fuge for the purpose of defeating the provisions of the Act or of 
this Code. 

Sec. 7. Posting. — All employers shall post complete copies of this 
Code in conspicuous places accessible to employees. 

Article VI — Marketing Practices 

Section 1. Open Price Policy. — (a) Within twenty (20) days 
after approval of the code by the President all members of the 
Industry shall publish, and from time to time thereafter, as condi- 
tions require, may revise their price lists, including list prices, terms 
of delivery, and cash discounts, together with trade discount sheets 
applying to each class of customer, for each recognized standard 
classification of slate and slate products which they offer for sale. 
They shall deliver such price lists and trade discount sheets and 
revisions thereof to the Slate Industry Code Authority ten (10) days 
in advance of the effective date thereof, unless the Slate Industry 
Code Authority shall authorize a shorter period. Sufficient copies 
of such price lists, and revisions thereof, together with discount 
sheets and any changes therein, with notice of effective date specified, 
shall be delivered to the Code Authority to permit of immediate 
sending of same to all known Members of the Industry, selling the 
same slate products, who thereupon may file, if they so desire, revi- 
sions of their price list and/or discount sheets to meet the price first 
filed which shall become effective upon the date when the revised 
price list or discount sheet first filed goes into effect. 

(b) No Member of the Industry shall sell directly or indirectly 
by any means whatsoever any product of the industry covered by 
the provisions of this Article at a price lower or at discounts greater 
or on more favorable terms of payment than those provided in his 
current price lists and trade discount sheets for respective classes of 
customers. 

Sec. 2. No Member of the Industry shall by means of any secret 
rebate, special discount or by selling or offering for sale nonstandard 
grades, sizes, dimensions or classifications of slate and slate products, 
or other means attempt to violate or evade the terms of the Code set 
forth in this Article, 

Sec. 3. Liquidation of Stocks. Inventories of slate which must be 
liquidated by any Member of the Industry may be sold at such prices 
as are necessary to move slate into buyers' hands ; however, all such 
stocks must be reported to the Slate Industry Code Authority and 
disposed of subject to the approval of that Authority. 

Sec. 4. Selling Below Cost, (a) Except as specified in Section 
3 of this Article no Member of the Industry shall sell or exchange 
any slate or slate products at a price or upon such terms or condi- 
tions as will result in the jmrchaser paying for such product less than 
the average district cost of that Member of the Industry's district for 
that product. 

(b) The metliods of determining, and the agencies who determine, 
the average district cost shall be established by the Code Authority 



305 

subject to the approval of the Administrator ; but in computing the 
average district costs from individual members' cost records the costs 
of at least that 40% of the Members of the Industry of each par- 
ticular district having the highest costs shall be excluded. Until his 
average district cost is available, no Member of the Industry shall 
sell or exchange any product below his own individual cost, com- 
puted by accounting methods established by the Code Authority and 
approved by the Administrator, except to meet the competition of a 
Member of the Industry having a lower cost for the same product. 

(c) The Code Authority shall establish a uniform method of 
accounting suitable for the Industr}^ subject to the approval of the 
Administrator. Each Member of the Industry shall use a cost ac- 
counting system at least as detailed as that so established by the Code 
Authority. But the determination of a Member's average cost for the 
purposes set forth in Subsections (a) and (b) of this Section shall 
not include : depreciation, interest on capital, and reserves for con- 
tingencies, or other purposes. 

(d) The provisions of this Article shall apply to all stocks of 
Members of the Industry now on hand, as v/ell as to future produc- 
tion, except that all contracts for delivery of slate entered into prior 
to the approval of this Code by the President shall l)e executed as 
per agreed terms, unless by voluntar}^ agreement the contracting 
parties set new terms. 

Sec. 5. Sales Terms and Conditions. — (a) All members of the In- 
dustry shall adopt and maintain such uniform credit and contract 
terms and other uniform, fair, and equitable sales practices as estab- 
lished by the Code Authority with the approval of the Administrator. 

(b) Within ten (10) days after the effective date of this Code, 
each Member of the Industry shall publish and file with the Code 
Authority all qualifications which have been established by him to 
determine the prices, terms, or conditions of sale made applicable 
by him to the different classes of his trade or customers, for products 
covered by this Code. He shall publish and file promptly with the 
Code Authority any changes made by him in such qualifications and 
any additional qualifications. 

(c) Each member shall file at such times, in such manner, and at 
such places as may be designated by the Code Authority the names 
and locations of all direct sales agents, branch offices, commission 
representatives, and salesmen with whom they have contracted for 
sale of their product. 

Article VII — Administration 

A Code Authority is hereby constituted to administer this Code 
in accordance with the provisions of the Act. 

Section 1. Organization and constitution of the Code Authority. 

(a) The Code Authority shall consist of the President of the 
National Slate Association, from time to time in office, two (2) 
individuals from each division of the industry elected by and from 
members of the Code in each respective division by a fair method 
of selection approved by the Administrator. But in no event, so long 
as there are only three (3) divisions, shall the division representatives 
on Code xVuthority consist of more than three (3) from the Pennsyl- 



306 

vania-Maryland Region or two (2) from the New York-Vermont 
Region, or one (1) from the Maine Region, When matters pertain- 
ing to the roofing-slate division of the Industry are brought before 
the Code Authority an individual elected by and from the members 
of the Code in the Virginia Region shall sit with the Code Authority 
with full voting power. The Administrator, in his discretion, may 
appoint not more than three (3) additional members, without vote, to 
represent the Administrator or such groups or interests as he may 
specify or approve, to serve for terms of twelve months. 

(b) In each region there shall be selected, by methods approved 
by the Administrator, such regional and district committees as may 
be required, to assist the Code Authority in the administration of the 
Code under such regulations as the Code Authority may provide. 

(c) The National Slate Association shall: (1) Impose no inequi- 
table restrictions on membership, and (2) submit to the Adminis- 
trator 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 necessar}^ to effectuate the purposes of the 
Act. 

(d) In order that the Slate Industry 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 pro- 
vide such hearings as he may deem proper ; and thereafter if he shall 
find that the Slate Industry Code Authority is not truly represen- 
tative 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 Slate Industry Code Authority. 

Sec. 2. Powers and Duties. The Slate Industry Code Authority 
shall have the following auties and powers to the extent permitted 
by the Act, subject to the right of the Administrator on review to 
disapprove any action taken by it. 

(a) 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 
hereof, provided that nothing herein shall relieve the Code Au- 
thorit}^ 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 provisions hereof. 

(b) 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 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 mem- 
bers of the industry or any other party except to such governmental 
agencies as may be designated by the Administrator. 

(c) The Code Authority may designate a planning board or com- 
mittee whose function and duties shall be the betterment of the In- 



307 

(liistry, tlii'oiigh improvement of conditions within the Industry and 
throiif^h cooperative action with other industrial oroups, subject to 
the approval of tlie Code Authority. 

(d) The Code Authority, upon its own initiative, upon request of 
the Administrator, or upon complaint in writing by an interested 
party or group, may make such inquiries or investigations as may be 
necessary to administer effectively the provisions of this Code, 

(e) INIembers 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 initiation and admin* 
istration. The reasonable share of the expenses of its initiation 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 factors as may be deemed equitable to be taken 
into consideration. 

(f) Any interested party shall have the right of complaint to 
the Code Authority and a prompt hearing and decision thereon, under 
such rules and regulations as it shall prescribe, in respect to any 
act of any agent or agency designated by the Code Authority to act 
in its behalf. 

(g) Nothing contained in the Code shall be deemed to constitute 
any of the members thereof partners for any purpose. No member 
of the Code shall be liable in any manner to anyone for the act of 
any member or agent of the Code Authority performed pursuant to 
the provisions of this Code. No member of the Code and no member 
or agency of the Code Autliority shall be liable to anyone or in any 
manner other than as provided in the act, or in the Code, for any 
act performed in accordance with, or for any failure to act required 
b}^, the provisions of the Code. 

Article VIII — Trade Practices 

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

Section 1. False Marking or Branding. — The false marking or 
branding of any product of the Slate Industry which has the tend- 
ency to mislead or deceive customers or prospective customers, 
whether as to the grade, quality, quantity, substance, character, na- 
ture, origin, size, finish, or preparation of any product of the Slate 
Industry. 

Sec. 2. Misrepresentation or False or Misleading Advertising. — 
The making or causing or knowingly permitting to be made or pub- 
lished any false, materially inaccurate, or deceptive statement by 
way of advertisement or otherwise, whether concerning the grade, 
quality, quantity, substance, character, nature, origin, size, finish, or 
preparation of any product of the Slate Industry or the credit terms, 
values, policie,s, or services of any member of the Slate Industry, 
having the tendency or capacity to mislead or deceive customers or 
prospective customers. 

Sec. 3. Commercial Bribery. — No member of the Industry shall 
give, permit to be given, or directly offer to give, anything of value 



308 

for the purpose of influencing or rewarding the action of any em- 
ployee, agent, or representative of another in relation to the business 
of the employer of such employee, the principal of such agent or the 
represented party, without the knowledge of such employer, prin- 
cipal or party. Commercial bribery provisions shall not be con- 
strued to j)rohibit 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. Interference with Contractual Relations. Maliciously in- 
ducing or attempting to induce the breach of an existing oral 
or written contract between a competitor and his customer or source 
of supplj?^, or interfering with or obstructing the performance of any 
such contractual duties or services. 

Sec. 5. Secret Rebates. The secret payment or allowance of re- 
bates, refunds, commissions, credits, or unearned discounts, whether 
in the form of money or otherwise, or the secret extension to certain 
purchasers of special services or privileges not extended to all pur- 
chasers on like terms and conditions. 

Sec. 6. Defamation. The defamation of competitors by falsely 
imputing to them dishonorable conduct, inability to perform con- 
tracts, questionable credit standing, or by other false representations 
or by the false disparagement of the grade or quality of their goods. 

Sec. 7. Substitution. The furnishing of slate not suitable for a 
purpose ordered or the shipping of products which do not conform 
to the samples submitted or representations or change in specification 
upon which order was placed, made prior to securing the order, with- 
out the consent of the purchaser to such substitution. 

Sec. 8. Espionage of Competitors. Securing confidential infor- 
mation concerning the business of a competitor by a false or mis- 
leading statement or representation, by a false impersonation of one 
in authority, by bribery, or by any other unfair method. 

Sec. 9. infringement of Patents. Imitating trade marks, trade 
names, slogans, or other marks of identification of competitors and 
the appropriation of catalog and advertising forms, constitute a vio- 
lation of this Code. 

Sec. 10. To aid and abet the practice known as "" bid peddling." 

Sec. 11. Consigned Goods. The shipping of slate or slate prod- 
ucts on consignment. 

Sec. 12. Other Unfair Practices. Nothing in this Code shall limit 
the effect of any adjudication by the Courts or holding by the Fed- 
eral Trade Commission on complaint, finding, and order, that any 
practice or method is unfair, providing that such adjudication or 
holding is not inconsistent with any provision of the Act or of this 
Code. 

Sec. 13. As far as possible, employers in the Slate Industry will 
promote employment by following the Simplified Practice Recom- 
mendations of the Department of Commerce R13-28 on Structural 
Slate, R14-28 on Roofing Slate, and R15 on Blackboard Slate, in 
their production and sales promotion efforts and endeavor to have 
hpecifiers of slate require the sizes provided in these recommen- 
dations. 



309 
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 tho 
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. This Code, except as to provisions required by the Act, may 
be modified on the basis of experience or changes in circumstances or 
supplemented to meet marketing needs of this natural-resource indus- 
try, such modification to be based upon application to the Adminis- 
trator and such notice and hearing as he shall specify, and to become 
effective on approval of the President. 

Article X — Monopolies, Etc. 

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

Article XI — Price Increases 

Whereas the policy of the Act to increase real purchashig 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 — Effective Date 

This Code shall become effective ten (10) days after its approval 
by the President. 

Approved Code No. 218. 
Registry No. 1023-19. 

O 



Approved Code No. 219 

CODE OF FAIR COMPETITION 

FOR THE 

BEDDING MANUFACTURING INDUSTRY 

As Approved on January 23, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

BEDDING MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Indus- 
trial Recovery Act, approved June 16, 1933, for approval of a Code 
of Fair Competition for the Bedding Manufacturing Industr}', and 
hearings having been duly held thereon and the annexed report on 
said Code, containing findings with respect thereto, having been 
made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. G543-A, dated December 
30, 1933, and otherwise: do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the i^ertinent provisions and will promote the policy and pur- 
poses of said Title of said Act; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

HUGH S. JOHNSON, 
Administrator for Industnal Recovery^ 
Approval Recommended. 
W. A. Harrimax, 

D ivisio n A amhiistrator. 
Washingtox, D.C, 

January 33, 193^. 

(311) 

35259° 313-109 34 



The President, 

The White House. 
Sir : This is a report on the Code of Fair Competition for the Bed- 
ding Manufacturing Industry as revised after a public hearing held 
on November 9, 1933, in accordance with the provisions of the 
National Industrial Recovery Act. 

LABOR PROVISIONS 

Provision is made for a forty-hour week, except that employees 
may work 48 hours a week during any eight (8) weeks in any six (6) 
months' period. Exceptions are provided for travelling salesmen, 
employees engaged in emergency maintenance or emergency repair 
work, and for persons employed in a managerial, supervisory, or 
executive capacity who earn not less than thirty-five ($35.00) dollars 
a week. A tolerance of 10% is permitted for firemen, engineers, 
truck drivers, and shipping crews. Watchmen may be permitted to 
work no more than an average of forty-eight hours a week and in no 
week over fifty-six hours. 

No employee shall receive a lesser wage rate than is required to 
provide the same earnings for forty hours of labor per week as was 
received for that class of work for the longer work week prevailing 
prior to June 1, 1933. A minimum rate of thirty-five (35^) cents 
per hour is provided for employees in the North and thirty (300) 
cents per hour for employees in the South. Apprentices, who may 
be employed for a period of not more than ninety days, shall receive 
not less than 80% of the minimum, and the number of apprentices 
shall at no time exceed 5% of the total employees. No employee 
may serve more than one apprenticeship in the industry. Persons 
whose earning capacity is limited because of age or physical or men- 
tal handicap may be employed on light work at wages lower than the 
minimum, provided the employer obtains from a state authority a 
certificate authorizing such employment. 

No person under the age of 16 years may be employed in the 
industry, nor anyone under the age of 21 years at operations or 
occupations hazardous in nature or detrimental to health. The 
provisions of Section 7 (a) of Title I of the Act are included. It 
is provided that within each State the Code shall not supersede any 
laws of the State imposing more stringent requirements on employers 
regulating the age of employees, wages, hours of work, or health, 
fire, or general working conclitions than under the Code. Employ- 
ers may not reclassify employees or duties of occupations so as to 
defeat the purposes of the Act. Employers must post complete 
copies of the Code in conspicuous places accessible to employees. 

All labor provisions of this Code are made subject to review by 
the Administrator and modification after July 1, 1934. 

(312) 



313 

ECONOMIC EFFECT OF THE CODE 

According to the report of the Division of Economic Research 
and Planning, the weighted average of hours of work by employees 
in the Bedding Manufacturing Industry in 1929 was 49.3 hours a 
week. However, it was frequently the practice in that year to 
work employees as many as 60 to 72 hours a week, and even during 
the dull season as many as 45 hours a week. As a result of the 
40-hour week provision in the code, members of the Industry esti- 
mate that the Industry will reemploy all of its workers based on 
1929 employment figures and probably as many as from 7 to 10% 
more than were emplo5^ed during the peak of 1929. Employment in 
the Industry on June 1, 1933, was approximately 21% less than 
employment during the peak of 1929. The total increase in employ- 
ment in the Industry because of the provisions of the Code will 
be from 28 to 31% over the employment on June 1, 1933. As a 
result of this Code, minimum wages in the Southern territory will 
be approximatel}^ double the minimum rates which were paid on 
June 1, 1933. In the North, the average wage increase to emploj^ees 
receiving the minimum will be nearly 50%. Employers estimate 
that their total payrolls will be increased by from 60 to 120%, not 
only because of the increase in the minimum rate and a reduction in 
the hours of employment, but also because of the provision that no 
employee may receive less for the 40-hour week than he received 
for the longer week prevailing before June 1, 1933. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter ; 

I find that : 

(a) Said Code is well designed to promote the policies and ]3ur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Industry normally emploj's not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant asso- 



314 

ciation is an industrial association truly representative of the afore- 
said Industry; and that said association imposes no inequitable 
restrictions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 

For these reasons, therefore, I have approved this Code. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
January 23, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

BEDDING MANUFACTURING INDUSTRY 

ARTiciiE I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as the Code 
of Fair Competition for the Bedding Industry and shall be the 
standard of fair competition for such industry and shall be binding 
upon every member thereof. 

Article II — Definitions 

1. The term " industry " as used herein, includes the manufacture, 
remaking, repairing, or renovating of mattresses, pillows, box 
springs, studio couches (^the principal components of which are 
springs, mattresses, and pillows), metal beds, metal and wood cribs 
and cots, metal bed springs, and gliders; provided, however, that 
this definition shall not include any retail furniture or department 
store which, incidental to the operation of such business, repairs, re- 
makes, or renovates for customers a bedding product previously 
sold by such store to such customer; provided further, that organi- 
zations or groups of manufacturers representing branches or sub- 
divisions thereof may become parties to or be exempted from this 
Code on approval by the Administrator. 

2. The term " bedding " as used herein includes the products 
stated above. 

3. The term " employee " as used herein, includes anyone engaged 
in the industry except a member of the industry in any capacity 
receiving compensation for his services, irrespective of the nature 
or method of payment of such compensation. 

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

5. The term " member of the industry " as used herein includes 
anyone engaged in the industry as above defined, either as an 
employer or on his own behalf. 

6. The "South" as used herein includes the following States: 
"Virginia, West Virginia, North Carolina, South Carolina, Georgia, 
Florida, Kentucky, Maryland, District of Columbia, Tennessee, Ala- 
bama, Mississippi, Arkansas, Louisiana, Texas, and Oklahoma. The 
" North " includes the remaining States 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 Administra- 
tor for Industrial Recovery. 

(315) 



816 

Article III — Hours 

I. No employee shall be permitted to work in excess of 40 hours 
per week except that any employee may work 48 hours a week dur- 
ing any 8 weeks in each six months' period. The aforesaid maximum 
hours are subject to the following exceptions : 

(a) The provisions of this Article shall not apply to travelling 
salesmen, or to employees engaged in emergency maintenance or 
emergency repair work, or to persons employed in a managerial, 
supervisory, or executive capacit}^ who earn not less than thirty-five 
dollars ($35.00) per week, (b) A tolerance of 10% upon the hours 
specified above is permitted for firemen, engineers, truck drivers, and 
shipping crews, (c) Watchmen shall not be permitted to work more 
than an average of 48 hours a week over a two weeks' period, and in 
no week over 56 hours. 

Article IV — Wages 

1. No employee shall receive a lesser rate than is required to pro- 
vide the same earnings for 40 hours of labor per week as was re- 
ceived for that class of work for the longer work week prevailing 
prior to June 1, 1933 ; provided, however, that no factory employee, 
whether remuneration is based upon an hourly or piecework or incen- 
tive plan, shall receive less than a minimum of thirty cents per hour 
in the South, and thirty -five cents per hour in the North; and fur- 
ther providing that all other employees whose remuneration is based 
upon a weekly or monthly rate shall receive not less than a minimum 
of $15.00 per week. 

The above minimum wages shall not in any way be considered as 
a discrimination by reason of sex and where in any case women do 
substantially the same work or perform substantially the same duties 
as men they shall receive the same rate of wage as men receive for 
doing such work or performing such duties. 

2. Apprentices witliout previous experience in bedding work may 
be employed at a minimum wage of 80% of the above requirements 
for a period of not more than ninety days; provided, however, the 
number of such beginners employed by a member of the industry 
shall at no time exceed 5% of his total employees; provided further, 
no employee may serve in the bedding industry more than one 
apprenticeship within the above provisions. 

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 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. 

A. Any member of the industry who does substantially the same 
work performed by any employee of the industry, shall be subject 
to all of the hour and wage provisions of Articles III and IV hereof. 



317 

Article V — General Labor Provisions 

1. No person under 16 years of age shall be employed in the indus- 
try, nor anyone under 21 years of age at operations or occupations 
hazardous in nature or detrimental to health. The Code Authority 
shall submit to the Administrator a list of such occupations within 
30 days after the effective date hereof. In any State an employer 
shall be deemed to have complied with this provision if he shall have 
on file a certificate or permit duly issued by the authority in such 
State empowered to issue employment or age certificates or permits, 
showing that the employee is of the required age. 

2. Employees shall have the right to organize and bargain collec- 
tively through representatives of their own choosing, and shall be 
free "from the interference, restraint, or coercion of empWers 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 emplo3'ment shall be required 
as a condition of employment to join aiw company union or to refrain 
from joining, organizing, or assisting a labor organization of his own 
choosing, and 

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

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

6. Em])loyers shall not reclassify employees or duties of occupa- 
tions performed by employees so as to defeat the purposes of the Act. 

7. All employers shall post complete copies of this Code in con- 
spicuous places accessible to employees. 

8. For the general protection of all employees as well as those 
engaged in renovating used materials, every employer shall make 
reasonable provision for the safety and health of his emplo3'ees 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 for approval within six months after the effective 
date of this Code. 

A. The provisions of Articles III. IV, IV (a), and V are subject 
to the Administrator's review and modification after July 1, 1934, 
on such showing of facts as he may require and after reasonable 
opportunity for the Code Authority to be heard. 

Article VI — Administration 

1. To further effectuate the policies of the Act, twe Board of Trus- 
tees of the National Association of Bedding Manufacturers is hereby 
designated the Code Authority to administer, supervise, and promote 
the performance of the provisions of tliis Code by members of the 
industry and to cooperate with the Administrator. 

.S52 59 " 3 1 3-109 34 2 



318 

2. Any bedding manufacturer is entitled to membership in the 
Association and to participate in the selection of members of the 
Code Authority by assenting to and complying with the requirements 
of this Code. Each member of the Association shall pay his propor- 
tionate share of the expenses of the preparation and administration 
of this Code. Such costs and expenses shall be defrayed as follows: 
Until December 31, 1934, each member shall pay to the Association 
on an annual basis the sum of five dollars, plus an amount equal to 
1/20 of 1% of such bedding manufacturer's 1931 total sales, and for 
each calendar year thereafter the same percentage of the total sales 
of such manufacturer for the previous calendar year. In the event 
that such payments shall not raise a sum sufficient to meet the fore- 
going purposes, the Code Authority shall have power to levy an 
assessment on all members, based upon sales volume as aforesaid for 
the amount required. These payments and assessments shall be 
subject to change at the requirement of the Administrator. 

Each bedding manufacturer Avho is not a member of the Associa- 
tion shall pay a sum representing his proportionate share of the 
expenses of the administration of this Code upon the same basis, 
and at the same times, and shall make the same reports, as are 
required to be made by members of the Association. 

It is expressly understood that the income of the Association de- 
rived from such payments or assessments shall be used by the Code 
Authority exclusive!}' for the purposes hereinabove set forth. 

No bedding manufacturer who does not assent to the provisions of 
this Code shall have any right to participate either in the benefits of 
the Association or the selection of members of the Code Authority. 

3. The Code Authority may appoint such agents or special or gen- 
eral committees from among the members of the Association for the 
purposes of this Code as it may decide, subject to such regulations 
as the Administrator may require. The Government is to i)e rcpi'e- 
sented on the Code Authority by one to three members without vote 
and Avithout expense to the industry to be appointed by the Admin- 
istrator for terms of from six months to one year, the terms of 
appointment to be arranged so that they do not expire at the same 
time. 

4. In order that the Association shall at all times be truly repre- 
sentative of the industry and in other respects comply with the 
provisions of the Act, the Administrator may provide such hearings 
as he may deem proper, and thereafter, if he shall find that the 
Association is not truly representative, or does not in other respects 
comply with the provisions of the Act, the Administrator may re- 
quire a modification in method of selection of members of the Code 
Authority. 

5. (a) For the administration of this Code the bedding industry 
of the country shall be divided into zones, districts, and regions long 
established b}' the industry through the Better Bedding Alliance of 
America, based upon commercial centers, competitive characteris- 
tics, and living and working conditions. These zones are for refer- 
ence shown as Exhibit ''A" attached hereto. Districts and regions 
are as shown in the Bylaws of the Association. The boundanc of 
the zones, regions, and districts may from time to time be changed 
or modified by the Code Authority, 



819 

(b) There shall bo a National Board of Zone Directors and, for 
the pillow division and the glider division, respectively, National 
Boards of District Chairmen. These Boards shall make such recom- 
mendations as they deem advisable to the Code Authority, including 
amendments to this Code. 

If any recommendation of the Board of Zone Directors or of the 
Boards of District Chairmen concerning amendments to this Code, 
is disapproved or modified by the Code Authority, such original rec- 
ommendation shall be referred back to the originating Board with 
reasons for disapproval or modification, but if such original recom- 
mendation is then passed by a two-thirds vote of the entire Board 
of Zone Directors or, with respect to matters relating exclusively to 
the Pillow or Glider Divisions, by a four-fifths vote of their respec- 
tive Boards of District Chairmen, such action shall be effective and 
final the same as if it had the approval of the Code Authority. 
Otherwise, the action of the Code Authority on any such recom- 
mendation shall be effective and final. 

6. At meetings of such National Boards, each Zone Director or 
District Chairmen shall be authorized to act for the members of his 
Zone or District, respectively. 

7. A Government Contact Committee shall be appointed by the 
Code Authority and shall conduct all communications and confer- 
ences of the bedding industry with the President, or with his agents, 
concerning the approval of this Code or the approval of any amend- 
ments thereof. 

8. The Board of Zone Directors or the respective Boards of Dis- 
trict Chairmen of the pillow or glider divisions, may submit rules 
and regulations necessary for the effective administration and en- 
forcement of this Code to the Code Authority and upon their adop- 
tion and approval by the Code Authority such rules and regulations 
shall be submitted to the Administrator for approval. 

9. To supply data needed for the administration of this Code, each 
member of the industry shall furnish to the Secretary of the Associa- 
tion such reports or statistics as may be deemed necessary for that 
purpose by the Code Authority or by the Board of Zone Directors or, 
with respect to the Pillow or Glider Divisions by their respective 
Boards of District Chairmen, such reports at all times to be open to 
inspection of the Administrator. All such individual reports or sta- 
tistics shall be kept confidential as to source by the Association Sec- 
retary, and he shall disclose no source of information without the 
consent of the source, except as may be required by the Adminis- 
trator. 

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

11. Violations and Complaints, (a) The Code Authority shall 
appoint a National Grievance Committee of three or more members, 
designating one as Chairman, who shall consider in the manner here- 
inafter provided, complaints involving claimed violations of any of 
the provisions of this Code. No member of the National Grievance 
Committee may be a member of either a Zone or Kegional Grievance 
Committee. 



320 

(b) Each Regional Coordinator shall appoint from among the 
members within his Region a Regional Grievance Committee of 
three or more members, and shall designate the Chairman of such 
Committee. 

(c) Each Zone Director shall appoint from within his Zone, a 
Zone Grievance Committee of three or more members, designating 
one as Chairman of said Committee. 

(d) If any member of the industry shall violate this Code and 
should complainant and defendant both be located in the same Zone, 
accusation thereof shall be made to the Grievance Committee of that 
Zone. The Chairman of the Grievance Committee shall thereupon 
call a meeting of said Committee to investigate and consider the 
case. If by majority vote they decide that the facts appear to 
warrant such action, they shall report their findings to the Regional 
Grievance Committee of the Region in which said Zone is located, 
for its review. The Regional Committee shall then consider the case 
and if by majority vote they find that the facts warrant such action 
they may report the facts to the proper government authority for 
prosecution. 

(e) If any member in one Zone shall have cause of complaint for 
violation of this Code against a member of the industry in another 
Zone, and should both Zones be located within the same Region, accu- 
sation thereof shall be made to the Regional Grievance Committee 
of that Region. The Chairman of said Committee shall thereupon 
call a meeting of the Committee to investigate and consider the case. 
And if by majority vote said Regional Committee finds that the facts 
warrant such action, they may report the facts to the proper govern- 
ment authority for prosecution. 

(f ) In case o^ complainant and defendant hereunder being located 
in different Regions, accusation shall be made to the National Griev- 
ance Committee. The Chairman thereof shall thereupon call a meet- 
ing of the Committee to investigate and consider the case. If by 
majority vote they find that the facts warrant such action they may 
report the facts to the proper government authority for prosecution. 

(g) No member of any Grievance Committee shall sit on a case 
in which he is involved. In such case he shall temporarily be re- 
placed by a new Grievance Committee member, appointed by the 
authority delegated hereunder to appoint the members of such 
Grievance Committee. 

12. Section 11 of this Article shall not apply to the Pillow Divi- 
sion. Complaints of violations within said Division shall be handled 
as follows : 

(a) Each District Chairman of the Pillow Division shall appoint 
two members out of his district, who will serve with him as a com- 
mittee of three to hear all complaints of violations of this Code and 
if a defendant against whom the complaint is made is deemed to be 
guilty of the offense charged, the matter shall be referred to the 
National Board of District Chairmen. If the National Board shall 
deem the accused guilty, they may report the facts to the proper 
government authority for prosecution. 

(b) In case one of the members of the Committee is the accused, 
a substitute is to be appointed from the membership in that district. 



321 

This substitute shall be appointed by the two other members of the 
Committee. 

13. The Code Authority shall have authoritj^ to review, disapprove, 
or modify if it so decide, the action of any board or committee pro- 
vided for in this Code ; and any action of the Code Authority shall 
be subject to the review and disapproval of the Administrator, 

14. Blue Eagle or Other Insignia. Upon assenting to the pro- 
visions of this Code and becoming thereby a member of the Asso- 
ciation, any member of the industry shall be entitled to display the 
Blue Eagle and such official emblem for use after December 31, 
1933, as may be then authorized, and, subject to the approval of the 
Administrator, together with such official emblem, to display such 
authorized insignia of the Association as shall be promulgated and 
adopted by the Code Authority thereof. The privilege of using the 
Blue Eagle or such official emblem and approved insignia may be 
withdrawn and cease or may be suspended in respect of any such 
member of the Industrj' whose operations, after the hearings here- 
inabove provided for imder terms of this Article before the proper 
grievance committee and approval by the Administrator, shall be 
found to be in substantial violation of this Code. The Code Au- 
thority may establish appropriate rules, regulations, and machinery 
for the issuance of labels or other methods of use of such emblem 
or insignia in accordance with the foregoing provisions, upon ap- 
proval by the Administrator. 

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

Article VII — Trade Practices 

The following rules set forth below in Part One of this Article 
shall apply from the effective date of this Code to all members of the 
industry and any infraction thereof shall constitute an unfair method 
of competition and may serve as the basis of complaint before the 
appropriate grievance committee as hereinbefore provided: 

PART ONE 

1, Second-Hand Material. — No member of the industry shall use 
second-hand or previouslj^ used material in the manufacture of bed- 
ding. Renovate and repair work on bedding not for resale is per- 
mitted, but if on such work added material is needed, such added 
material shall not contain any previously used material. 

The terms " second-hand " or " previously used " material as used 
herein mean (a) any material which has been used in the manufac- 
ture of another article or used for any other purpose; (b) any 
material made into thread, yarn, or fabric, and subsequently torn, 
shredded, picked apart, or otherwise disintegrated, (They do not 
include metals re-rolled under " white-heat " or byproducts obtained 
from the machining of new cotton.) 



322 

Any member of the industry who receives bedding for renovation 
or repair shall keep attached thereto from the time received, a tag 
on which is legibly written the date of receipt and the name and 
address of the owner thereof. 

2. Inspection. — To insure proper labeling of products, every place 
where bedding is made, remade, renovated, or sold by a member of 
the industry shall be subject to inspection by inspectors authorized 
by the Code Authority, and each member of the industry shall freely 
permit such inspection. 

When such inspector has evidence for belief that said bedding is 
not tagged as required hereunder, he shall have authority to open a 
seam of such bedding to examine the filling ; and he shall have power 
to seize and hold for evidence any such bedding possessed or offered 
for sale which is improperly and untruthfully labelled. 

3. Tagging. — No member of the industry shall sell a mattress, pil- 
low, box spring, glider, or studio couch to which is not securely sewn 
by at least one edge a cloth or cloth -backed tag at least 2x3 inches 
in size; and upon said tag shall be legibly stamped or printed in Eng- 
lish on the face of said tag (a) the name of the materials used to fill 
such bedding; (b) the name and address of the maker or vendor of 
the bedding; (c) in letters at least one eighth inch high, the words 
" Remade or Renovated Bedding " if such bedding has been remade, 
renovated, or repaired and is not to be resold ; or the word " Second- 
hand " if such bedding has been used but not remade. 

Nothing likely to mislead shall appear on said tag and it shall con- 
tain all. statements required hereunder, and shall be sewed to the 
outside covering of every article of such bedding before the filling is 
inserted. 

The name " felt " shall not be used unless the material described 
has been carded in layers by a garnett machine. 

4. Pillow Labelling Rules. — The following description rules shall 
apply to the tagging of pillows, feathers, or down : 

(a) Feather mixtures shall be designated by the name, character, 
and percentage by weight of each material used, or the entire mix- 
ture shall be designated by the name of the lowest grade of material 
used (for example — Filling is goose and duck feathers. This mix- 
ture shall be designated as goose and duck feathers and the percentage 
of each stated on the tag, or the entire mixture shall be designated 
as duck feathers). The term "goose feathers" or "duck feathers" 
does not include curled goose quills or curled duck quills. Duck- and 
chicken-feather or goose- and chicken-feather mixtures shall be so 
designated and the percentage by weight of each stated on the tag, 
cr the entire mixture shall be designated as chicken feathers. 

(b) Material other than down, separated from feathers without 
the AA'hole or a part of the quill or stem attached, shall be designated 
" Feather Fiber " regardless of the fowl from which it came, except 
that down filaments separated from the down cluster shall be desig- 
nated as " Down." 

(c) Curled or chopped feathers shall be designated by the name 
of the fowl from which they came, preceded by the word " curled " 
or " chopped." 

(d) The term " curled " may be used only when the name of the 
feather is stated. The term " curled feathers " shall not be used. 



323 

(e) Tlie term " clown " shall only be used to desicnate the soft 
undercoatino- of a Avaterfo-wl, consisting of the light, fiiiffy filaments 
grown from one quill point but without any quill shaft. The term 
maj'^ be used to indicate small natural feathers which blow over with 
the down in the process of separating the down from the feathers; 
provided that the proportion of small feathers does not exceed ien 
percent by weight. When feathers in excess of ten percent are 
present, the material shall be deemed to be a " mixture " and the 
name and percentage of each material in the mixture shall be stated 
on the tag. The term " down '' includes all real downs and it shall 
not be necessarj^ to indicate the kind of down but, if indicated on the 
tag as a particular kind of down, such as " Goose DoAvn ", " Duck 
Down ", " Eider Down ", etc., the material shall be as stated. 

(f ) The addition to down of feather fibre. " manufactured down ", 
" fake down ", or any other deliberate adulteration shall not be 
permitted unless the name and percentage of the adulterant material 
is stated on the tag. 

(g) Except as otherwise provided, where there is more than one 
material in a mixture used for filling, the name and percentage of 
each material shall be stated on the tag, but to allow for uninten- 
tional variations in mixtures, a variation not in excess of ten percent 
from the amount stated on the tag shall not be considered as 
misleading. 

(Wherein a provision of the foregoing Sections 1 to 4, inclusive, 
is irreconciliably in conflict Avith a State statute, such statute shall 
supersede Avithin such State. It is the intent herein to preserve and 
suj)plement state bedding laws.) 

5. Glider Tagging. — Each glider shipped shall bear a tag con- 
spicuously placed on which shall be legibly printed : " Glider covers 
are not guaranteed by the manufacturer to be fade-proof, water- 
proof, or crack-proof." Provided, how^ever, that if and when a 
glider manufacturer submits to the Code Authority reasonable proof 
that a particular covering is in fact fade-proof or water-proof or 
crack-proof, the aforesaid label may in such case be appropriately 
altered, upon approval of the Code Authority. 

6. 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 ])urchasers with respect to the brand, grade, 
quality, quantity, origin, size, substance, character, nature, finish, 
material, content, or preparation of such goods. 

7. Inaccurate References to Ccmpefitors. — No member of the in- 
dustry shall publish advertising or make any statement which refers 
inaccurately in any material particular to any conipetitors or their 
goods, prices, values, credit terms, policies, or service. 

8. Testi')nonials. — The obtaining and using of false and misleading 
testimonials is an unfair trade practice. Any testimonial used must 
be used in the manner and form as prescribed by the Federal Trade 
Coui mission. 

9. Selling on Consignment. — No member of the industry shall ship 
goods on consignment (or approval) except under circumstances to 
be hereafter defined by the Code Authority where peculiar circum- 
stances of the industry require the practice. 



324 . 

10. Co^mmercial Espionxige. — Commercial espionage as defined and 
exemplified in the rulings and decisions of the Federal Trade Com- 
mission, in any form, is an unfair trade practice. 

11. Inaccurate Advertising. — 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 particu- 
lar, nor shall any such 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. 

12. Threats of Law Suits. — ^No member of the industry shall pub- 
lish or circulate unjustified or unwarranted threats of legal pro- 
ceedings which tend to or have the effect of harrassing competitors 
or intimidating their customers. Failure to prosecute in due course 
shall be evidence that any such threat is unwarranted or unjustified. 

13. False Invoicing. — 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. 

All sales shall be invoiced at the time of shipment, and records 
pertaining to such sales shall clearly and accurately state all the 
essential elements of the sale. Failure to comply with these pro- 
visions is an unfair trade practice. 

14. Free Goods. — No salable merchandise may be delivered or 
given to a customer or to a consumer (except to a bona fide charity) 
without full and proper charge for same, and such charitable gifts 
shall be reported to the Association Secretary within 48 hours. 
Such reports maj^ be given to interested members of the industry. 

15. Spiffs {Commercial Bribery). — No member of the industry 
shall loan, give, permit to be given or loaned, or directly offer to 
loan or give, anything of value for the purpose of influencing or 
rewarding the action of any employee, agent, or representative of 
another in relation to the business of the employer of such em- 
ployee, the principal of such agent or the represented party, with- 
out the knowledge of such employer, principal, or party; nor shall 
such member permit such actions through or by his salesman. This 
provision 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 commercial bribery as herein- 
above defined. 

16. Bonus to Promote Sale of Bedding. — In order to promote the 
sale of better bedding, a bonus may be allowed on products of the 
industry by the mianufacturer thereof to the dealer, provided such 
dealer contracts with the manufacturer in writing to pay such bonus 
as an extra incentive to his salesmen as heretofore practiced in the 
industry and until terms, regulations, and conditions shall be here- 
after promulgated by the Code Authority with the approval of the 
Administrator. 

17. G omfarison of Values. — A bedding manufacturer may not at- 
tach to his product any label bearing a retail value, price, or dollar 
mark more than one hundred twentj^^-five percent above the price at 
which the manufacturer has sold the goods to the dealer, based on 



325 

the manufacturer's l.c.l. price f.o.b. factory or warehousej as the case 
may be; and in case of sale to a jobber, before deducting jobber's 
discount. A value, price, or dollar comparison of over one hundred 
twenty-five percent above the manufacturer's price to the dealer may 
not be put on any display signs, advertising signs, or other material 
which is paid for by the manufacturer. 

18. Samiples. — Regular selling prices must be charged on full- 
sized (or standard-sized) finished products for display purposes. No 
credit can be given for the return of samples, including floor sam- 
ples. This applies only to samples submitted by a manufacturer 
to a dealer in bedding, and not to samples submitted for contract 
sales. 

19. Returns amd Allowances. — No member of the industry, except 
in the exercise of right arising from breach of contract, will be per- 
mitted to accept the return of merchandise, for credit, exchange, or 
otherwise, except where claim has been made to the dealer, within 
six months after shipment by the dealer, and then only where a 
defect in material or workmanship, caused by the manufacturer, has 
been proved, except where permitted by clauses under " Guarantees ", 
and only to the extent there permitted. 

20. Interference with Contract. — No member of the industry shall 
knowingly attempt to induce the breach of an existing contract be- 
tween a competitor and his employee or customer or source of sup- 
ply; nor shall any such member interfere with or obstruct the per- 
formance of such contractual duties or services. 

21. Breach of Contract. — It shall be an unfair trade practice for 
a bedding manufacturer to repudiate any order or contract covering 
any of his purchases. 

22. Anticipation. — Granting of extra discount or interest for 
anticipation of proper payment date shall not be allowed. 

23. Terms. — Net terms are not to exceed 60 days from date of 
shipment. 

24. Cash Discount. — Cash discount shall not exceed 2% and shall 
not be granted where payment is made after 30 days or 2% 10th 
prox. from date of invoice. Cash discount may only be earned by 
payment in cash, not in trade acceptances, notes, or otherwise. 

25. Retroactive Quantity Discounts. — To grant a discount or re- 
bate based on cumulative quantities purchased over a given period is 
an unfair-trade practice. 

26. Rebates. — The giving, at any time, of any rebate or allowance 
other than as shown on a manufacturer's invoice is prohibited, 
whether in money or otherwise, except as otherwise specifically 
described and permitted in this Code. 

27. Postdating and Predating. — Postdating or predating quota- 
tions, orders, invoices, statements, or other sales documents (usually 
done for the purpose of facilitating unfair competition) is an unfair 
trade practice, except that on gliders, April 1st dating, may be 
granted on shipments made in January, February, and March of the 
same year. 

28. Group Sales. — To offer purchasers or prospective purchasers a 
group of products for a lump sum, but in which one or more of the 
items have ostensibly been reduced in price, while another item or 



326 

items have been increased in price, with the purpose or effect of 
deceiving prospective purchasers or injuring competitors, is an 
unfair-trade practice. 

29. Trade Acceptances and Notes. — It will be considered unfair 
for a bedding manufacturer to accept a trade acceptance or a note in 
settlement of any account due, unless such acceptance or note bears a 
rate of interest of not less than 6% per annum. 

30. Guarantee Against Decline. — Effective January 1, 1934, to 
guarantee merchandise against decline of price is an unfair-trade 
practice. 

31. Guarantee Against Ad'vance. — To guarantee any purchaser or 
prospective purchaser against advance in price is an unfair trade 
practice, provided, however, that this shall not apply against a bona 
fide order or contract covering a definite quantity and specifications 
for future delivery. 

32. Malfeasance hy Jobbers. — Since a substantial majority of the 
products of the industry are sold direct by the manufacturer to 
dealers, and since the purpose and effect of this Code of Fair Trade 
Practices would be otherwise defeated, it shall be an unfair method 
of competition for any member of the industry to sell his products 
to a middleman standing between the manufacturer and the dealer 
while sales practices condemned by this Code are used by such 
middleman with the knowledge of such manufacturer. This shall 
not be construed to require agreements to maintain resale prices. 

PART TWO 

The following rules set forth under Part Two of this Article 
shall apply to all members of the industry from the effective date 
of this Code and any infraction thereof shall constitute an unfair 
method of competition and may serve as the basis of complaint 
before the appropriate grievance committee as hereinbefore pro- 
vided, but at any time subsequent to the approval of this Code, the 
following rules shall be subject to review by the Administrator, and 
after reasonable notice and opportunity for hearing given by him 
to the Code Authority, he may, at his discretion affirm, or disapprove 
any of said rules or may accept a modification thereof proposed by 
the Code Authority. 

1. Guarantees. — No bedding manufacturer shall make any guaran- 
tee except that he may guarantee the contents to be as described by 
him, and he may guarantee the product against defects of material 
and workmanship for a period not to exceed six months from date of 
delivery to the ultimate consumer; except that the manufacturer 
may guarantee any mattress or boxspring sold on his l.c.l. or ware- 
house price list for not less than $14.50, for a period of not more 
than two years, during which period the manufacturer may repair 
same without charge, but after which time a repair charge must be 
made at actual cost but not over the rate of 20% of the manufacturer's 
l.c.l. or warehouse price list for each year the article has been in use, 
and the manufacturer may guarantee any mattress or boxspring 
selling on his l.c.l. or warehouse price list for not less than $19.00 
for a period of not more than five years, during which period the 
manufacturer may rei)air same without charge ; such article may be 



327 

replaced during the five-year period at actual cost but not over a 
charge of $3.00 per year of usage. 

Provided, however, that the Code Authority may change any of 
the aforesaid prices of products to which guarantees apply in the 
event that changing market conditions warrant such action in the 
discretion of the Code Authority. Nothing herein shall be con- 
strued to relieve any member of the industry from warranties 
implied by law. 

2. Advertising o/' Promotional Allowances. — The giving of an 
allowance, rebate, or any credit or other remuneration to a customer 
for advertising or promoting in any way the sale of a manufacturer's 
goods is an unfair trade practice, unless the dealer shall spend at 
least an equal amount with the manufacturer, and no sum shall be 
paid by the manufacturer except upon the presentation of docu- 
mentary proof of the expenditure by the dealer. The documentary 
proof submitted by the dealer shall, in all cases, be preserved by the 
manufacturer for inspection, as directed by the Code Authority. 

Provided further that no allowance, rebate, credit, or other re- 
muneration shall be given when, by deducting same from the billing 
price of the articles advertised or promoted, it shall bring the net 
price charged by the manufacturer below cost. 

Article VIII — Sales Below Cost 

It is hereby declared to be the policy to be followed by all members 
of the industry to refrain from destructive price cutting. It is 
agreed to be to the best interests of the consumer, the individual 
manufacturer, and also that of his employees, and productive of the 
greatest possible economic recovery for all members of the industry 
to avoid carefully the destructive economic waste caused by selling 
below cost. 

The Code Authority may adopt, as soon as practicable, either a 
uniform cost accounting system, a reasonable and appropriate system 
for the interchange of price lists among members of the industry, 
or a system for determining standard minimum costs. The system 
so adopted shall be binding on all members of the industry, when 
approved by the Administrator. Only a violation of such approved 
system shall be basis for complaint to any grievance committee under 
this Article. 

Article IX — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to tlie 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 oicler, 
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 anj^ con- 
ditions 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 modifications to be based upon application to the Administra- 
tor and such notice and hearing as he shall specify, and to become 
effective on approval of the President. 



328 

Article X — Monopolies, Etc. 

No provision of this Code shall be so applied as to permit monop- 
olies or monopolistic practices, or to eliminate, oppress, or discrim- 
inate against small enterprises. 

Article XI — Special Agreements 

Reasonable notice of the submission of any agreement authorized 
to be submitted to the President by virtue and under authority of 
Section 4 (a) of the Act shall be given to the Code Authority by 
any member of the industry who proposes to make such agreement. 

Article XII — Code Conflicts 

Wherein this Code may be in conflict with a Code of another in- 
dustry, the products of which are made by a bedding manufacturer, 
and should such conflict impose a hardship on such manufacturer^ 
the latter shall report the matter to the Code Authority for such 
adjustment of this Code or such other action as the said Board may 
see fit, subject to the approval of the Administrator. 

Article XIII — Nonpartners 

Nothing contained in this Code shall constitute the members of the 
Code Authority or of this Association partners for any purpose. 
Nor shall any member of the Code Authority, exercising reasonable 
diligence in the conduct of his duties hereunder, be liable to anyone 
for any action or omission to act under this Code, except for his own 
willful misfeasance or nonfeasance. 

Article XIV — Price Increases 

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

Article XV — Effective Date 

This Code shall become effective on the first Monday after its 
approval by the President. 

Approved Code No. 219. 
Registry No. 1607-1-01. 



Bedding Industry Code — Exhibit "A" 

EXPLANATION OP AETICI^ VI, SECTION 5 (A) ZONES 

(aa) These Zones, as established at present and subject to such later revision 
as the Code Authority may deem necessary, shall be : 

The New England Zone shall include the States of Maine, New Hampshire, 
Vermont, Rhode Island, Massachusetts, and Connecticut. 

The Metropolitan New York Zone shall include Long Island and the cities of 
New York and Brooklyn and all territory in the area bounded on the east by 
Long Island Sound, on the North by a line drawn from Connecticut border at 
Golden's Bridge westward through Summitsville,, N.Y., to East Branch, N.Y., 
and on the west by a line drawn southward from East Branch along the 
Pennsylvania-New Jersey border to Stockton. N.J., and on the south by a line 
drawn from Stockton eastward through Spotswood, N.J., to the Atlantic Ocean 
at Seabright, N.J. 

The Eastern Neio York Zone shall include all of the state of New York lying 
south of the Canadian border and east of a line drawn from Fair Haven, N.Y., 
southward through Ovid and Watkins to Elmira, N.Y., except that portion 
already included in the Metropolitan New York Zone. 

The Western Neto York Zone shall include all of the state of New York not 
Included in the Eastern New York Zone and the Metropolitan New York Zone. 
The Eastern Pmvnsylvania Zone shall include the District of Columbia and 
the States of Maryland and Delaware and that portion of New Jersey lying 
south of the southern boundary of the Metropolitan New York Zone and that 
portion of Pennsylvania lying west of the western boundary of the Metropolitan 
New York Zone and east of a line drawn from Elmira, N.Y., southward through 
New Berlin, Pa., to the Maryland border at Round Top, Pa. 

The Western Pennsylvania Zone shall include all the State of Pennsylvania 
not included in the Eastern Pennsylvania Zone and that portion of West 
Virginia lying north of a line drawn from the extreme southwest tip of Pennsyl- 
vania northwestward to Moundsville, W.Va. 

The Noi-th Carolina and Virginia Zones shall include the states of North 
Carolina and Virginia. 

The Southeastern Zone shall include the states of South Carolina, Georgia, 
Alabama, and Florida. 

The Memphis Zone shall include the states of Louisiana, Mississippi, and 
that portion of the state of Tennessee lying west of a line drawn south from 
Cedar Hill, Tennessee, through Kleburne Junction to Prospect Station, Ten- 
nessee. 

The Southern Ohio Zone shall include the state of Kentucky, that portion of 
the state of Tennessee which is not included in the Mississippi Zone and that 
portion of the state of Ohio lying east of the state of Indiana and south of a 
Une from Lewisburg, Ohio, eastward to and including the city of Dayton, and 
west of a line drawn from Dayton, southward to Manchester, Ohio. 

The Northern Ohio Zone shall include that portion of the State of Ohio not 
included in the Southern Ohio Zone and that portion of West Virginia not 
included in the Western Pennsylvania Zone. 

The Indiana Zone shall include all of the state of Indiana except the ex- 
treme northwestern tip lying north and west of a line drawn from the Illinois 
border at Momence, Illinois, northeastward through Hobart to New Buffalo, 
Michigan. 

The Northern Illinois Zone shall include that portion of the State of Indiana 
not included in the Indiana Zone and that portion of the State of Illinois 
lying east of a line drawn from Lake Michigan at the Illinois-Wisconsin 
border southwestward to West Chicago and southeastward to the Indiana 
border at Momence, Illinois. 

The Central Illinois Zone shall include all of the State of Illinois lying north 
of a line drawn from the Missis!?ippi River just below Quincy, eastward through 
Towersville and Marshall to the Indiana border, except that portion of Illinois 
included in the Northern Illinois Zone. 

(329) 



330 

The Detroit Zone shall Include the cities of Detroit and Hamtramck, 
Michigan. 

The Michigan Zone shall include all of the state of Michigan except the 
cities of Detroit and Hamtramck and that portion of the Upper Peninsula 
lying ^yest of a line drawn directly south from Grand Marais to Pt. Seul 
Choix.- 

The Wisconsin Zone shall include that portion of the Upper Peninsula of 
Michigan not included in the Michigan Zone and all of the srate of Wisconsin 
except that portion lying west of a line drawn from Saxon, Wisconsin, south- 
ward through Ingram, Stanley, and White Hall to the Minnesota border at 
E. Winona, Wisconsin. 

The Minnesota Zone shall include that portion of the State of Wisconsin 
not included in the Wisconsin Zone, the states of Minnesota, North Dakota, 
and South Dakota, that portion of the State of Montana lying east of a line 
drawn from Many Glaciers, Montana, southeastward through Simms and 
Leadboro to Bear Creek, Montana ; and all of the State of Nebraska, except 
that portion lying east of a line drawn from the South Dakota-Nebraska 
border at Wynot, Nebraska, directly southward through Rogers to the Kansas 
border at Steele City, Nebraska. 

The Iowa Zone shall include the State of Iowa and that portion of Nebraska 
not included in the Minnesota Zone. 

The Missouri Zone shall include that portion of Illinois not included in the 
Central and Northern Illinois Zones and all of the State of Missouri lying east 
of a line drawn from the Iowa border at Howland, Missouri, southward through 
Booneville to the Arkansas border at Pontiac, Missouri. 

The Kansas Zone shall include the State of Kansas and that portion of the 
State of Missouri not included in the Missouri Zone. 

The Arkansas Zone shall include the State of Arkansas. 

The OJclaJioma Zone shall include the State of Oklahoma. 

The Texas Zone shall include all of the State of Texas south of Oklahoma, 
east of Mexico, and east of a line drawn from the Mexican border at Del Rio 
northward through Robert Lee and Guthrie to the southwest tip of Oklahoma. 

The Denver Zone shall include that portion of the State of Texas not included 
In the Texas Zone, the States of New Mexico and Colorado, and all of the 
State of Wyoming except the portion lying Avest of a line drawn from the 
Montana border at Chance, Montana, southward through Leekie, Wyoming, to 
the northwestern tip of the State of Colorado. 

The Utah Zone shall include that portion of the State of Wyoming not in- 
cluded in the Denver Zone ; that portion of the State of Idaho lying south of a 
line drawn from the northwest tip of Wyoming eastward through Gillmore and 
Cambridge, Idaho, to the Oregon border at Buchan, Oregon ; the State of 
Utah ; that portion of the State of Nevada lying south of Idaho and east of a line 
drawn from the southwest tip of Idaho southward through Nelson and Austin, 
Nevada, to the California border at Mud Spring ; and all of the State of Arizona 
except the portion lying south and west of a line drawn from the southeastern 
tip of Arizona northwestward through Camp McDowell Indian Reservation to 
the southeastern tip of Nevada. 

The northern Pacific Zone shall include the States of Oregon and Washing- 
ton, that portion of Idaho not included in the Utah Zone, and that portion of 
Montana not included in the Minnesota Zone. 

The Central Pacific Zone shall include that portion of the State of Nevada not 
included in the Utah Zone and that portion of the State of California lying 
north of a line from the Nevada border at Mud Spring, Nevada, westward 
through Tarpey, California, and southwestward to the Pacific Ocean at Bryson, 
California. 

The Southern Pacific Zone shall include that portion of the State of California 
not included in the Central Pacific Zone and that portion of the State of Ai-izona 
not included in the Utah Zone^ 

o 



Approved Code No. 220 
CODE OF FAIR COMPETITION 

FOR THE 

ENVELOPE INDUSTRY 

As Approved on January 23, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

ENVELOPE INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June IG, 1933, for approval of a Code of 
Fair Competition for the Envelope Industry, and hearings having 
been duly held thereon and the annexed report on said Code, contain- 
ing findings with respect thereto, having been made and directed to 
the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. C>54:3-A, dated December 
30, 1933, and otherwise ; do hereby incorporate by reference said an- 
nexed report and do find that saicl Code complies in all respects with 
the pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved. 

HUGH S. JOHNSON, 

Administrator' for Industiial Recovery. 

Approval recommended : 

George L. Berry, 

Division Administrator. 

Washington, D.C, 

January 23, 1934.. 

(331) 

33359° 313-78—34 



The President, 

The White House. 
Sir: This is a report of the hearing on the Code of Fair Com- 
petition for the Envelope Industr}-, conducted in Washington on 
October 10, 1933, in accordance with the provisions of Title I of 
the National Industrial Recovery Act. 

HOURS AXD WAGES 

The Code provides a standard 35-hour week for factory workers 
with a w^eekly tolerance of five hours to be paid for as overtime. 
The usual exceptions are made in regard to nonproductive employees. 
Office employees are limited to an average of 40 hours per week over 
a thirteen-week period. 

The miniuium wage rate for hourly paid employees is 40^' per 
hour in the North and 37^ in the South, and for office emplovees 
$16.00 per week in the ^orth and $15.00 in the South. 

PLANT OPERATION 

The productive ca])acity of the Industry exceeds the present de- 
mand by about 50%. To keep production within reasonable bounds 
a plant operation limit of 40 hours per week is provided. Excep- 
tions are made in certain cases in order to permit small plants the 
necessary flexibilit}' in operation. The right is reserved to the 
Administrator to modif}^, suspend, or remove all limitations on plant 
operation at any time. 

OTHER PROVISIONS 

Provision is made for furnishing the Administrator with any 
statistical data which he may require. An open ])rice selling plan 
is provided, and selling below cost, except to meet competition, is 
prohibited. 

ECONOMIC EFFECT OF THE CODE 

The Industry employed about 11,600 persons at its peak in 1929. 
The number employed in May 1933 was about 9,000, who worked 
an average of 38 hours per week. The effect of the Code, without 
increase in volume, will be to employ about 1,000 additional persons 
which additional volume will further increase. Almost one fourth 
of the employees in the North have been receiving less than 30^' per 
hour. The total increase in pay rolls as a result of the Code will 
be about 26%. 

(332) 



333 



FINDINGS 



The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter; 

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanctions and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industiy. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees: and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects witli the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof; and that the applicant 
association is an industrial association truly representative of the 
aforesaid Industry; and that said association imposes no inequitable 
restrictions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 
not been deprived of the right to be heard prior to approval of 
said Code. 

For these reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
January 23, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

ENVELOPE 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 Avords are used in this Code with the meanings 
herein set forth : 

Industry: The manufacture of envelopes (except envelopes for 
boxed papeteries and boxed stationery) from all materials except 
transparent cellulose. 

Meviber: A natural person, partnership, cor^Doration, association, 
trust, trustee, trustee in bankruptcy, or receiver engaged in such 
Industry. 

Prodivctlve machinery : All machinery used for performing any 
process necessary to the manufacture of envelopes of any kind pro- 
duced by this Industry. 

Act: Title I of the National Industrial Recovery Act. 

Admittisfrator: The National Industrial Recovery Administrator. 

Article II — Organization and Administration 

1. The members of the Executive Committee of the Envelope 
Manufacturers Association of America, together with such other 
person or persons as the Administrator may designate, are hereby 
cojistituted the Code Authority of the Industry. The members of 
the Code Authority designated by the Administrator shall act in an 
advisory ca])acity 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 
achnission 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 nuiy at any time prescribe a ditferent 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 of 
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, 

(334) 



335 

or cancellation by him in any case in which he shall determine that 
any such act violates the purposes of the National Industrial 
Recoveiy 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 Authoritv or otherwise assent to this 
Code. 

G. The Code Authority shall have power to investigate alleged 
violations of this Code and acts or courses of conduct b}^ 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. 

7. The Code Authority may divide the country into geographical 
divisions for the purpose of administering this Code. Different 
divisions for different products of the Industry may be so created. 

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 
schedules : 

SCHEDULE or WORKING HOURS 

(a) Watchmen including those watchmen who incidentally tend 
fires: 112 hours in any period of two weeks and not more than 6 days 
in any one week. 

(b) Chauffeurs and truckmen: 192 hours in any period of four 
consecutive weeks, provided, however, that time worked in excess 
of 91/2 hours in any one day or 48 hours in any one week shall be 
paid for as not less than time and one third. 

(c) Engineers and firemen: 168 hours in any period of four con- 
secutive weeks, provided, however, that time worked in excess of 
9 hours in any one day or 48 hours in any one Aveek shall be paid 
for as 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 opera- 
tion of such plant, mill, or factory : A basic work week of 35 hours 
with a tolerance of 5 hours additional, provided, however, that time 
worked in excess of 9 hours in any one clay or 35 hours in any 
one week shall be paid for as not less tlian time and one third. 

(e) Executives and their personal secretaries and other employees 
engaged in a supervisory caj)acity receiving $35.00 or more per 
week and outside salesmen : No limitation. 

(f) All other employees: An average of 40 hours per week in any 
period of 13 consecutive Aveeks but not more than 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 
protection of life or property, provided, however, that all time 
worked under this section in excess of the limitations prescribed in 
said Schedule shall be paid for as not less than time and one third. 



336 

3. No provision of this Article shall be so construed as to require 
payment for the same time as time and one third more than once. 

4. No employee shall be permitted to work for two or more mem- 
bers of the Industry an a<2:*iregate number of hours in excess of the 
number prescribed in said Schedule. 

5. The manufacture or partial manufacture of any product of 
this Industry in the home of a worker is prohibited. 

Article IV — Wages 

1. The minimum rate of wa^^e of any laborer, mechanical worker, 
or artisan employed in any i)lant, mill, or factory or on work con- 
nected with the operation of any such plant, mill, or factory shall 
be as follows : 

(a) In the Northern zone, which shall consist of all of the terri- 
tory of the United States except the States named in subdivision (b) 
hereof, 40 cents per hour. 

(b) In the Southern zone, Avhich shall consist of the States of 
Virginia, Tennesee, North Carolina, South Carolina, Georgia, 
Florida, Alabama, Mississippi, and Louisiana, 37 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 : 

(a) In the Northern zone, as defined in Section 1 hereof, $16.00 
per week. 

(b) In the Southern zone, as defined in said Section, $i.'').00 per 
week. 

4. 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 (GO) daj's 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. 

5. Persons learning an occupation shall be paid not less than 80% 
of the minimum prevailing wage for such occupation provided that 
the number of such learners employed by any member of the Indus- 
try shall not exceed 10% of the number of employees in such occu- 
pation but shall not be limited to less than 2 persons, and that 
learners shall not be employed as such for a period in excess of six 
weeks, irrespective of whether they are employed by one or more 
employers. 

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 or other agency 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. 

7. Office boys and girls under 18 j^ears of age may be employed 
at a wage of not less than 80% of the minimum prescribed by Section 



337 

3, hereof, provided that the number of persons paid as office boys 
and girls by any member of the Industry shall not exceed 5% of 
the number of employees designated in Section 3 hereof employed 
by such member, but shall not be limited to less than 1 person. 

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 
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 ri^ht to organize and bargain collec- 
tively through representatives oi their own choosing, and shall be 
free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. No 
emploj'ee and no one seeking employment shall be required as a 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, w^ages, 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. 

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. All employers shall post copies of Articles III, IV, and V of 
this Code in conspicuous places accessible to employees. 

6. Every emploj^er 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 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 
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 

33359° 313-78 34 2 



338 

working week and shall, within three (3) months after the effective 
date of this Code, make a report of its findings to the Administrator. 
The Code Authority shall also submit to the Administrator within 
six (6) months after the effective date of this Code, a plan for the 
stabilization and regularization of emploj^ment. 

Article VI — Plant Operation 

1. Subject to the exceptions contained in Sections 2 and 3 hereof, 
no member shall operate any manufacturing plant in excess of 40 
hours per week averaged over a period beginning with the effective 
date of this Code and ending on the 30th day of June 1934, and 
thereafter over each successive period of six months beginning on 
July first and January first of each year or more than 1,040 hours 
in any such period of six months. 

2. For the purposes of the foregoing Section, the ojxn-ating time 
of any unit of productive machinery in any plant shall be regarded 
as the operating time of the entire plant, piovided, however, that 
the operating time of not more than one-third of the total number 
of envelope folding machines in the plant, but not in any case more 
than three envelope folding machines and/or their necessary com- 
plementary equipment, on emergency work, as the same may be de- 
fined by the Code Authority, shall not be counted as plant operating- 
time. 

3. If, for a period of one year prior to the 16th day of June 1933 
or for the entire period of time prior to such date that any plant 
may have been in operation, such plant shall have been steadily 
operated with one or more extra shifts, employing thereon not less 
than one half the number of folding-machine operators employed 
on the day shift, then said plant may continue to be operated with 
such extra shift or shifts until May 1st, 1934. 

4. The limitations on plant operation may be modified, suspended, 
or removed by the Administrator at any time if he shall deiermine 
that such limitations have reduced or will tend to reduce unduly the 
suppl}^ of envelopes or are for any other reason contrary to public 
interest. 

Article VII — Accounting — Selling 

1. The Code Authoi'ity 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, everj^ memb(n- 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. The Code Authority may from time to time determine that 
an open price plan of selling such product or products of the Indus- 
try as it shall specify shall be put into effect on such date as it 
shall fix. Notice of such determination shall be announced to all 
known members of the Industry who manufacture such products 
not less than 30 days prior to the date so fixed. 

3. At least ten da3's prior to such date, every such member shall 
file with the Code Authority a schedule of prices and terms of sale 
for all such products or, in the alternative, shall be deemed to have 



339 

filed a schedule conforming in respect to price and terms of sale 
with the schedule at any time on file wliich states the lowest price 
and the most favorable terms. 

4. All such schedules shall be in such form as the Code Authority 
shall prescribe and shall contain all information necessary to permit 
any interested person to determine the exact net price per unit after 
all discounts or other deductions have been made, whether pertain- 
ing to a single order, a commitment for future delivery, or a con- 
tract. All such original schedules shall become effective on the date 
fixed by the Code Authority as provided in Section 2 hereof. Any 
such schedule, or any price therein, may apply nationally or may 
be limited to one or more geographical divisions created as provided 
in Section 7 of Article II hereof. 

5. An original schedule, a revised scJiedule or schedules, or a new 
schedule or schedules, or a notice of withdraw^al of a schedule pre- 
viously filed may be filed b}' a member with the Code Authority 
at any time, provided, however, that any member who withdraws a 
schedule without substituting a new schedule therefor shall be 
deemed to have filed a schedule conforming in respect to price and 
terms of sale with the schedule at any time thereafter un file which 
states the lowest price and the most favorable terms. Any schedule 
or notice filed hereunder, shall become effective five days after 
the date of filing, provided, however, that an increased price may 
become effective at such earlier date as the member filing the same 
shall fix. 

6. The Code Authority shall promptly supply all members of the 
Industry, wdio manufacture any particular product, with copies of 
all schedules, revised schedules, and notices of withdrawal, which 
pertain to such product. Innnediately upon receipt of information 
relative to the withdrawal of a price for any product, any member 
may file notice of withdrawal of his ow^n price for the same procluct 
effective as of the same date as the notice of withdrawal of such 
other member. Inmiediately on receipt of information that a sched- 
ule then on file has been revised, or that a new schedule has been 
filed, any member may file a revised schedule conforming as to price 
and terms to the schedule of such other meniber, and effective on the 
same date, or may notify the Code Authority that he adopts as his 
own the schedule of such other member. In the latter event, he shall 
be deemed to have filed a revised schedule conforming to the revised 
schedule of such other member. 

7. No such schedule of prices and terms 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 cost thereof to such member deter- 
mined in the manner provided in Section 11 hereof, provided, how- 
ever, that any member may by notice to the Code Authority, adopt 
as his own a lower price filed by another designated member. Such 
adoption shall become automatically void upon the withdrawal or 
revision upward of the price adopted. 

8. No member who shall have filed a price, or adopted as his 
own, a price filed by another member for any product of the Indus- 
try, shall sell such product for less than such price or upon terms 
or conditions more favorable than stated in such price schedule. 
No member, who shall have failed to file a price for any product 



340 

for ■which the open price plan is in effect, shall sell such product 
at a lower price or on terms more favorable than the lowest price 
and most favorable terms stated in an}^ price schedule for such 
product then on file. 

9. The Code Authority shall furnish at cost to any person con- 
cerned, whether member or non-member, requestin^^ them, copies of 
any price schedules which have been filed with it. Such price sched- 
ules shall be made available to non-members at the same time that 
they are sent to members. 

10. No member shall sell any product of the Industry for which 
no open price plan is in effect at less than the cost thereof to such 
member, determined as provided in Section 11 hereof, except to meet 
the price of a competitor whose price does not violate this Section. 

11. Cost, for the purposes of this Article, shall be determined 
pursuant to the method of accounting and costing prescribed as 
provided in Section 1 hereof as soon as such method is adopted and 
approved, and theretofore pursuant to the method employed by 
such member subject to such preliminary rides as the Code Authority 
shall from time to time prescribe with the approval of the 
Administrator. 

12. Every member filing a schedule or notice hereunder shall de- 
liver to the Code Authority without expense such number of copies 
thereof as shall be necessary to enable the Code Authority to supply 
one copy thereof to each member of the Industry and no such sched- 
ule or notice shall be deemed to have been filed until such number 
of copies shall have been received by the Code Authority. 

13. The Code iVuthority may at any time suspend the open price 
plan of selling either in its entirety or insofar as it applies to any 
specified product or products of the Industry. 

14. For the purpose of determining whether Sections 7, 8, 10 and 
11 hereof have been complied with, every member shall upon the 
I'equest of the Code Authority furnish a designated agency of the 
Code Authorit}^, in respect to closed transactions only, with complete 
information in regard to any quotation, order, contract, or sale of 
any product of the Industry, including information as to specifica- 
tions, quantities, price, conditions of storage, transportation, or de- 
liver3% terms of billing, cash or trade discounts allowed and other 
pertinent facts relating to such quotation, contract, or sale. 

15. Nothing herein contained shall be construed to prevent the 
disposition of distress merchandise required to be sold to liquidate a 
defunct or insolvent business in such manner at such price and such 
terms and conditions as the Code Authority may approve. 

IG. Nothing herein contained shall be construed to prevent the 
fulfillment of a bona fide contract existing on the effective date of 
this Code. The Code Authority may require members of the Indus- 
try to file with its designated agency and in such manner as it shall 
prescribe such data as it may require in respect of contracts for 
future deliveries existing on the effective date of this Code. 

Article VIII — Reports and Statistics 

1. Each member shall prepare and file wnth an impartial agent 
designated by the Code Authority at such times and in such manner 



341 

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- 
torj% 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 disinterested 
accountant or accountants 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 hereof shall be confidential and the 
statistics, data, and information of one member shall not be revealed 
to another member. No such data or information shall be published 
except in combination with other similar data and in such a manner 
as to avoid the disclosure of confidential information. The Code 
Authority shall arrange for the publication currentl}^ to members of 
such statistics of the Industry as the Code Authority may determine 
to be necessary. 

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 the Government Agencies 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act. 

Article IX^ — Trade Practices and Customs 

1. The following are hereby' constituted the Trade Practices for 
the Industry, and failure to comj)ly with the provisions thereof shall 
be a violation of the Code : 

a. Inducing Breach of Contract. — The wilful interference by 
any member, by any means or device whatsoever, with an}^ existing 
contract or order between a seller and a purchaser, in or about 
the production, manufacture, transportation, purchase, or sale of 
any product handled or service rendered by the industr}-, or the per- 
formance of any contractual duty or service connected therewith, 
such interference being for the purpose or with the effect of dis- 
sipating, destroying, or appropriating, in whole or in part, the 
patronage, property, or business of another member, is an unfair 
trade practice. 

b. Defamation of Competitor or Disparagement of his Goods. — 
The defamation of a competitor by Avords or acts, imputing to him 
dishonorable conduct, inability to perform contracts, or questionable 
credit standing, or the false disparagement of the substance, grade, 
or quality of his goods, is an unfair trade practice. 

c. Imitation of Trade-marks or Trade-names. — Imitation of the 
trade-mark or trade-name of a competitor with the intent to deceive 
buyers and consumers is an unfair trade practice. 

d. Threats of Suit for Patent or Trade-mark infringement. — 
The dissemination of threats of suit, not made in good faith, for 



342 

infringement of patents or trade-marks, and for the purpose of 
harassing and intimidating customers, prospective customers, or em- 
ployees, is an unfair trade practice. 

e. Fraud or M isrc prese nfaf ion . — The sale or offer for sale of any 
product of the Industry Avith intent to deceive customers or pros- 
pective customers as to the quantity, quality, substance, or size of 
such product, is an unfair trade practice. 

f. Mishimndmg. — The marking or branding of products of the In- 
dustry for the purpose or with the effect of misleading or deceiving 
purchasers or consumers with respect to the quantity, quality, grade, 
or substance of the goods purchased, is an unfair trade practice. 

g. Secret Rebates. — The payment or allowance of secret rebates, 
refunds, credits, or unearned discounts, whether in the form of 
money, or allowances for advertising, or sales promotion, or other- 
wise, is an unfair trade practice. 

h. Commercial Bribery. — To give, permit to be given, or directly 
to offer to give, anything of value for the purpose of influencing or 
rewarding the action of any employee, agent, or representative of 
another in relation to the business of the employer of such employee, 
the principal of such agent or the represented party, without the 
knowledge of such employer, principal, or party, is an unfair trade 
practice. The foregoing provisions 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. 

i. Prizes or Preiiviums. — The giving or offering to give prizes or 
premiums in connection with the sale of envelopes is an unfair trade 
practice. 

j. Adherence to Postal Regulations. — Intentional failure to con- 
form to the United States Postal Laws and Regulations in the de- 
sign of envelopes for mailing purposes and in the printing thereon 
is an unfair trade practice. 

k. Patent Protection. — No provision in this Code shall be construed 
to prevent any member from seeking the redress to which he may be 
entitled under the patent laws of the United States. 

1. /Seconds. — No seconds, job lots, misprints of envelopes shall be 
sold or offered for sale. 

m. False Billijig. — No member of the Industry shall withhold 
from or insert in any invoice any statement that makes it inaccurate 
in any material particular. 

n. Trade Customs. — The sale or offering for sale of any products 
of the Industry by any member of the Industry on any terms or 
conditions which fail to conform to the provisions of the following 
Code of Trade Customs is an unfair trade practice. 

1. C onfirmation of Orders. — Stenographic and clerical errors are 
subject to correction. All quotations made and all orders and con- 
tracts accepted by salesmen or selling agents are subject to the 
approval of an officer or authorized executive of the seller company. 

2. Date of Invoice. — 

(a) Invoices shall be dated with day of shipment except as other- 
wise provided in sections 17, 18, and 19 herein. 



343 

(b) Monthly statements rendered to a customer must include all 
invoices rendered to said customer during the preceding calendar 
month. 

3. CanceUation. — Orders accepted by the seller may not be 
countermanded except with his consent. 

4. Return of Mfrchandise. — No merchandise conforming to order 
may be returned without the consent of the seller. 

5. Unavoidahle Delays in Delivery . — The shipment or delivery of 
all orders accepted shall be contingent on strikes, fires, accidents, 
delay's of carriers, and all other causes unavoidable or beyond the 
seller's control. 

6. Drawings and Plates. — All sketches, drawings, engravings, and 
original cuts not specifically charged for in full are the property 
of the envelope manufacturer. 

7. Cutting Dies. — All cutting dies are the property of the envelope 
manufacturer. 

8. Following Copy. — If copy must be followed exactly for style, 
type, and arrangements, customers must furnish cut or plate; other- 
wise the envelope manufacturer will match copy as nearly as may 
be practicable. 

9. Proof Errors. — When proof of printing has be^n sent for 
O.K., the envelope manufacturer shall not be responsible for any 
errors or mistakes customer fails to correct. 

10. Variation of Paper. — The envelope manufacturer shall not 
guarantee against unavoidable variations in shade, finish, strength, 
weight, and cleanliness. 

11. Discoloration Due to Gwm. — On account of the variety of 
dyes and other materials used in the manufacture of paper, the 
envelope manufacturer assumes no liability for discoloration due to 
the application of adhesives on papers supplied by the customer or 
specified by him. 

12. l^iibstance Basis. — 

(a) All paper for conversion into envelopes shall be purchased 
and sold only on the basis of substance numbers which represent the 
pounds weight per ream, sheet size 17 x 22, 500-sheet count. 

(b) The following substance numbers are established for 
envelopes : 

Grades of Paper : Basis 17 <r 22 

Bduds and Writings 13,16,20,24.28,32 

Lodjrers 20. 24, 28. 32, 36 

White Wood and Rag 20, 24, 28, 32 

Manila 16, 20. 24, 28. 32, 40 

.Tute and Rope 20.28,32,36.40 

Kraft, Sulphite and Sulpliate 13,16,20,24,28,32,36,40 

(c) When in-between weights are specified by the customer en- 
velopes shall be sold at the price of the next higher substance number 
esta})lished herein. 

(d) Heavier weights than the foregoing and other grades than 
those specified herein ma}' be used to meet requirements of customers, 
if sold on standardized mill-basis weights. 

13. Oveivmns and Uuderruns on Manufacturing Orders. — On 
orders to be manufactured, a variation in quantity either way, not 
to exceed 10%, shall be accepted as a fulfillment of the order and 
shall be paid for proportionally. 



344 

14. Ove'nnins and Underruns on S'pecial Paper. — Where orders 
require the special manufacture of paper, variation in quantity 
above or below the amounts specified shall be allowed in accordance 
with the trade custom as to variation of the material of the mill 
from whom the paper is purchased, but such tolerance shall not be 
less than 10%. 

15. Making Envelopes froTn Paper Finished hy Customers. — The 
following conditions shall apply to orders accepted for making 
envelopes from paper furnished by the customer, whether such 
paper is lithographed, printed, or unprinted. 

(a) The envelope manufacturer shall assume no responsibility for 
proper cutting of envelopes from sheets printed or lithographed 
according to any layout or press-proof not approved by him. 

(b) Such paper shall be well jogged and packed by the customer 
and shall be free from damaged edges. 

(c) The envelope manufacturer shall accept no responsibility for 
quantity of such paper except on special agreement with the customer 
and at his expense for counting. 

(d) When such paper is received in poor condition, it shall not 
be cut without specific instructions from the customer to proceed 
with the work at his risk for spoilage. 

(e) The envelope manufacturer shall not guarantee absolute con- 
formity of location of printing or lithographing on envelopes cut 
from paper printed or lithographed in the flat sheet. 

16. Cash Ducounts. — The following shall be the terms of dis- 
count: To wholesale distributors, 3% for cash on the tenth day of 
the month following date of shipment, or average of thirty days. 
To retail distributors or consumers, 2% for cash payment not later 
than the tenth day of the month following date of shipment. Cash 
discounts shall not be allowed when trade acceptances or note settle- 
ments are accepted in lieu of cash. 

IT. Split Billing ami Split Delivet^. — 

(a) Orders for 99M envelopes or less of one size, one style, and if 
printed, one printing copy (including permissible copy changes) 
shall be billed complete on first delivery. 

(b) If any part of the billing is to be deferred at customer's re- 
quest after the first delivery on orders of more than 99M and not 
exceeding 999M envelopes of one size, one style, and if printed one 
printing copy (including permissible copy changes), 10% shall be 
added to the price of the whole order. 

(c) Billing on orders for lease than 500M envelopes shall be com- 
pleted within six months from date of first delivery. 

(d) Billing on orders for 500M envelopes or more shall be com- 
pleted within one year from date of first delivery. 

18. Split Delivery Only. — 

(a) Orders for 24M envelopes or less of one size, one style, and if 
printed, one printing copy (including permissible copy changes) 
shall be shipped complete in one delivery. 

(b) "W^ien more than one delivery is required on an order for 
more than 24M and not exceeding 999M envelopes of one size, one 
style, and if printed, one printing copy (including permissible copy 
changes), 5% shall be adcled to the price of the whole order. 



345 

(c) Shipments on all ofders shall be completed within twelve 
months from date of first deliver3^ 

19. Orders for Future Delivery ami Billing. — On all orders for 
lOOM or more envelopes on which, at the customer's request, delivery 
and billing are deferred more than ninety days from date of place- 
ment of order, the price shall be cither 10% over list, or price pre- 
vailing on date of shipment, at customer's option to be exercised 
Avhen order is placed. 

20. Contract Items Excepted. — A contract for one million enve- 
lopes or more of one size, one style, and if printed, one printing copy 
(including permissible copy changes) or items constituting any part 
of a contract for two million envelopes or more of assorted sizes 
and/or st^des. or otherwise, shall be excepted from the provisions 
of sections 17, 18, and 19. 

'2.1.Envelopes with Adhesive Stamps Affixed., Excepted. — Orders 
for envelopes on which adhesive postage stamps are to be affixed by 
the seller shall be excepted from the provisions of sections 17, 18, 
19 and 20 hereinabove. 

Article X — 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 f olloAving lines : 

(a) For the establishment of additional rules, or for the modi- 
fication of rules, of trade practice and trade customs for the Industry, 
and the enforcement thereof. 

(b) For the prevention of unsound, unfair, or destructive com- 
petitive practices or prices in the Industry. 

(c) For the establishment of terms and conditions regarding sales 
to dealers and distributors by members of the Industiy. 

2. Recommendations of the Code Authority, when approved by 
the Administrator, shall have the same force and efl'ect as other 
provisions of this Code. 

Article XI — 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 Avork 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. Articles VI, VII, IX, and such parts of Article VIII as are 
unnecessary to assure compliance with other applicable provisions 
of this Code shall not apply to the manufacturer of stamped en- 
velopes and newspa])er wrappers and the supply thereof to the 
United States Post Office Department. 

4. Such of the provisions of this Code as are not required to be 
included therein by the Act, may. with the approval of the Admin- 
istrator, be modified, or eliminated as changes in circumstances or 
experience may indicate. 



346 

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

6. 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. 220. 
Registry 403-1-01. 

o 



Approved Code No. 221 
CODE OF FAIR COMPETITION 

FOR THE 

METAL HAT DIE AND WOOD HAT BLOCK 

INDUSTRY 

As Approved on January 23, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

METAL HAT DIE AND WOOD HAT BLOCK 

INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Metal Hat Die and Wood Hat Block 
Industry, and hearings having been duly held thereon and the an- 
nexed report on said Code, containing findings with respect thereto, 
having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved. 

Hugh S. Johnson, 
Ad7ninisti'ator for Industrial Recovery. 
Approval recommended : 
Malcolm Muir, 

Division Administrator, 

Washington, D.C, 

January 23, 193Jf. 



34348° 313-09 34 (347) 



The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Metal Hat Die and Wood Hat Block Industry in the United States, 
the hearing being conducted in Washington, D.C., on December 8, 
1933, in accordance with the provisions of the National Industrial 
Recovery Act, 

PROVISIONS ON HOURS AND WAGES 

The maximum hours provided by the Code for all employees except 
traveling salesmen, and executives receiving $35.00 or more per week 
is forty (40) hours per week and eight (8) hours per da^^. No peak 
season periods and no other exceptions than those mentioned above 
were requested or provided. 

The minimum wage rate per hour for other than office employees 
is forty (40) cents, Avhile office employees will not be paid less than 
$14.00 to $15.00 per week depending upon population. Equitable 
adjustments of wage rates above the minimum are provided and will 
be reported to the Code Authority and the Administrator. 

CHILD LABOR 

The minimum age provided in this Code is 16 years but in hazard- 
ous occupations this age limit is increased to 18 years. 

ECONOMIC EFFECT OF THE CODE 

Employment in this industry has not greatly declined during the ■ 
recent years due to the fact that styles were changed more fre- 
quently in order to stimulate the millinery industry to which this 
industry is closely allied. The shortening of hours will adequately 
reabsorb the slight unemployment and the increased minimum wage 
rate accompanied by the equitable adjustments provided for in the 
Code should fully restore the purchasing power of the employees 
of this industry which has declined more than its production and 
which must be restored to accomplish the purposes of the Act. 

In arriving at the terms expressed in the Code, the members of the 
industry have given every evidence of cooperation in complying with 
the spirit of the Act. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 
said Code having found as herein set forth and on the basis of all 
the proceedings in this matter: 

I find that— 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 

(348) 



349 

commerce whicli tend to dimiiiisli (lie nmount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperMtive action among the trade groups, by 
inducinir and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliininat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of j>roduction (except as may be tempoi-arily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing and 
relieving unemployment, by improving standards of labor, and by 
otherwise rehabilitating industry. 

(b) Said industry normally employs not more than 50,000 em- 
ployees and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant asso- 
ciations are industrial associations truly representative of the afore- 
said industry; and that said associations impose no inequitable re- 
strictions on admission to membershijo therein. 

(d) The Code is not designed to and will not permit monopolies or 
monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 
not been deprived of the right to be heard prior to approval of said 
Code. 

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Ad'nyinist7'ator. 
January 23, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

METAL HAT DIE AND WOOD HAT BLOCK 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 Metal Hat Die and Wood Hat Block Industry and shall be 
the standard of fair competition for such industry and shall be 
binding upon every member thereof. 

Article II — Definitions 

Section 1. Metal Hat Die and Wood Hat Block Industry/. 

The term " industry *" as used herein includes the manufacturing 
of wood and plaster blocks and metal dies for the hat, cap, and 
ladies', misses', and children's headwear industry and such related 
branches or subdivisions as may from time to time be included under 
the provisions of this Code by the President of the United States, 
after such notice and hearing as he may prescribe. 

Sec. 2. Meiiibcr of the Industri/. 

The term '' Member of the Industry '' includes, but without limita- 
tion, any individual, partnership, association, corporation or other 
person engaged in the industry either as an employer or on his or 
its own behalf. 

Sec. 3. Employee. 

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

Sec. 4. Act and Administrator. 

The terms "Act " and "Administrator " as used herein mean, 
respectively. Title I of the National Industrial Recovery Act, and 
the Administrator for Industrial Recovery. 

Sec. 5. Associations. 

The term "Associations •' shall mean the Hat, Block and Die 
Makers' Association, Inc., and the Wood Hat Block Manufacturers' 
Association, Inc. 

Article III — Hours 

Section 1. Maximum Hours. 

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 beginning at midnight except as provided in Section 2 

(350) 



I 



351 

Sec. 2. Executive., jSiipervisoi'i/., or Adminifitratlve P^mjyJoyees. 

The provisions of Section 1 of this Article shall not appl}' to 
traveling salesmen, or to persons employed in a managerial or execu- 
tive capacity who earn not less than thirty-five ($35.00) per week. 

Sec. o. Dual Emyloymcnt. 

No member of the Industry shall knowingly permit any employee 
to work for any time which, when totalled with that already per- 
formed with another employer or employers in this industry, exceeds 
the maximum permitted herein. 

Article IV — ^Wages 

Section 1. Minimum 'Wages. 

No emplo3^ee shall be paid at less than the rate of forty (40) cents 
per hour except that : 

(a) Accounting, clerical, office employees, and errand boys shall 
not be paid less than the rate of $15.00 per week in any city of 
500,000 population or over^ or in the immediate trade area of such 
city, and not less than $14.50 per week in any city between 100,000 
and 500,000 jjopulation or in the immediate trade area of such city, 
and not less than $14.00 per week in any city of less than 100,000 
population or in the immediate trade area of such city. The census 
fierures for the latest Federal census shall be the basis for this 
provision. 

Sec. 2. Female Employees. 

Female emploj^ees performing substantially the same work as male 
employees shall receive the same rate of pay as male employees. 

Sec. 3. Pieceicorh and Minimum Wages. 

This Article establishes a minimum rate of pay which shall apply 
irrespective of whether an employee is actually compensated on 
a time-rate, piecework, or other basis. 

Sec. 4. EquitahU Adjusffnent of Wages. 

No employee whose normal full time weekly hours for the four 
weeks ending June 16, 1933, are reduced shall have his full time 
weekly wages reduced below the amount received by such employee 
prior to June 16, 1933, notwithstanding the reduction in hours of the 
normal week. Wages of those receiving more than the minimum 
shall be equitably adjusted so as to preserve differentials existing on 
June 16, 1933. The adjustment since that date shall be reported to 
the Code Authority and the Administrator within thirty days of the 
effective date of this Code. 

Article V — General Labor PR0^•ISI0NS 

Section 1. Child Labor Prohihited. 

No person under sixteen (16) years of age shall be employed in 
the industry. No person under eighteen (18) years of age shall be 
emploj-^ed at operations or occupations which are hazardous in nature 
or dangerous to health. The Code Authority shall submit to the 
Administrator before Februaiy 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 certifi- 
cate 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. 



352 

Sec. 2. Employees' Right to Organize. 

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 ])urpose of 
collective bargaining or other mutual aid or protection. 

(b) That no emplo^^ee and no one seeking employment shall be 
required as a condition of employment to join any company union or 
to refrain from joining, organizing, or assisting a labor 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 of the United States. 

Sec. 3. Redassifying Employees. 

No member of the industry 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. Safety and Health. 

Every member of the industry shall nuike reasonable provision 
for the safety and health of his employees at the place and during 
the hours of their employment. 

Sec. 5. State Laws Prevail Where More Stringent Than Code. 

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 pro- 
tection than are imposed by this Code. 

Sec. 6. Posting Code. 

All members of the industry shall post complete copies of this 
Code in conspicuous places accessible to employees. 

Article VI — Organization, Powers, and Duties or the Code 
Authority Organization and Constitution 

Section 1. Code Authority. 

There shall forthwith be constituted a Code Authority consisting 
of four (4) persons to be selected in the following manner : 

(a) One member from the Hat-Block & Die Makers' Association, 
Inc., to be appointed by the Board of Directors. 

(b) One member from the Wood Hat Block Manufacturers' Asso- 
ciation, to be appointed by the Board of Directors. 

(c) The Executive Chairman of the Associations, who represents 
both the Hat Block & Die Makers' Association, Inc., and the Wood 
Hat Block Manufacturers' Association. 

(d^ One member to be chosen by and from the nonmembers of 
the Associations. Within ten days after the effective date of this 
Code the Executive Chairman of the Associations shall notify such 
nonmembers of a time within twenty (20) days thereafter, and place 
for choosing their representative on the Code Authority. 

(e) One to three members, without vote, to be appointed by the 
Administrator. If more than one such member is appointed the 



o - o 
Ot)0 



terms shall be for from six months to one year and so arranged that 
they do not expire at the same time. 

Sec. 2. Trade Association Regulations. 

Each 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 Ad- 
ministrator true copies of its articles of association, bylaws, regula- 
tions, and any amendments when made thereto, together with such 
other information as to membership, organization, and activities as 
the Administrator may deem necessary to effect the purposes of the 
Act. 

Sec. 3. Code Authority Must Be Representative. 

In order that the Code Authority shall at all times be truly repre- 
sentative of the industry and in other respects comply with the pro- 
visions 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. 4. Expenses of Code Authority. 

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 expenses of its administration. Such reason- 
able share of the expenses of administration shall be determined by 
the Code Authority, subject to review by the Administrator, on the 
basis of volume of business and/or such other factors as may be 
deemed equitable. 

Sec. 5. Memhers of the Code Authority Not Partners. 

Nothing contained in this Code shall constitute the members of 
the Code Authority partners for any purpose. Nor shall any mem- 
ber of the Code Authority be liable in any manner to anyone for any 
act of any other member, officer, agent, or employee of the Code 
Authority. Nor shall any member of the Code Authority, exercising 
reasonable diligence in the conduct of his duties hereunder, be liable 
to anyone for any action or omission to act under this Code, except 
for his own wilful misfeasance or nonfeasance. 

Sec. 6. Poicers and Duties of the Code Authority. 

The Code Authority shall have the following further powers and 
duties the exercise of wdiich 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 subject to 
the approval of the Administrator. 

(c) To obtain from members of the industry such information and 
reports as are required for the administration of the Code and to 
provide for submission by members of such information and reports 
as the Administrator may deem necessary for the purposes recited 



354 

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 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 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 Author- 
ity of its duties or responsibilities under this Code and that such 
trades 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- 
ordination of the administration of this Code with such other Codes, 
if any, as may be related to the industry. 

(f) To cooperate with the Administrator in regulating the use 
of any NRA insignia solely b}'^ those members of the industry who 
have assented to, and are complying with, this Code. 

(g) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the industry in their relations 
with each other or with other industries, and to recommend to the 
Administrator measures for industrial planning, including stabiliza- 
tion of employment. 

Article VII — Trade Practice Rules 

Rule 1. Terms and Discounts. 

The terms of credit extended by all persons engaged in this in- 
dustry shall be net ten days end of the month, and payment may be 
anticipated at the date of 6% per annum, and all shipments made on 
and after the 25th day of any month may bear dating as of the 1st 
of the following month ; but shipments made prior to the 25th of any 
month shall bear the actual date of billing. 

Rule 2. Return of Merchandise. 

The unjust return of merchandise constitutes one of the evils in 
the industry. No member of the industry shall accept for credit 
from any purchaser or give credit to any purchaser for any mer- 
chandise returned if said merchandise was purchased and shipped in 
good faith in accordance with the buyer's order. If merchandise is 
returned by reason of defects then no credit shall be given for such 
return unless such merchandise is returned within three days from 
the date of the receipt of said merchandise by the purchaser if the 
member of the industry and the purchaser are in the same city or 
trade area, or within five days if the purchaser is in another trade 
area than that of the member of the industry. 

Rule 3. Selling on Consignment. 

No merchandise shall be shipped on memorandum, loaned, or on 
consignment for sale and all sales shall be final and made with the 
intent that title shall pass. 



r^r: 



Rule 4. Gratuities. 

No ineniber 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 
employee, the principal of such agent or the represented party, with- 
out the knowledge of such employer, principal, or party, donimer- 
cial 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. 

Rule 5. Advertising. 

Allowances of discounts for advertising or for payment for space 
in newspapers, magazines, guides, or directories on behalf of any 
customer to be used in promoting the sale of merchandise to the 
consumer is prohibited. 

Rule 6. Assigmnents. 

No person shall, after the effective date of this Code, take or 
receive, directly or indirectly, from any customer either before or 
after the delivery of merchandise, an^assignment of accounts receiv- 
able or security in any form whatsoever for payment of the purchase 
price of merchandise without first notifying the Code Authority that 
such assignment or security has been or is about to be received. 

Rule 7. Eligibility for Credit. 

No person engaged in the industry shall extend credit to any custo- 
mer who shall be in default for a period of forty-five (45) days 
after maturity on any previous invoice sold to said customer by a 
member of the industry except in such cases as exceptions may be 
granted by the Code Authorit3^ Each member shall report to the 
Code Authority a complete statement of any disputes or reasons 
Imown to him of the failure to pay on behalf of the customer, and 
such statement shall contain a full and complete disclosure of any 
disputes which may exist between the member of the industry and 
the customer. The filing of false or misleading information in this 
respect shall be a violation of the Code. 

Rule 8. Black List. 

No member of the industry shall join or participate with other 
members of the industry, in any transaction known in law as a 
black list, including any practice or device (such as a white list), 
which accomplishes the purpose of a black list. 

Rule 9. F.O.B. Ship)7ients. 

All shipments shall be f .o.b. city of manufacture. 

Rule 10. /Statistics and Trade Informatioii. 

In order to carry out the declared policy of the Act, each person 
shall furnish such periodic reports as may be prescribed by the Code 
Authority, in such form and substance as they may direct. A wil- 
fully false report to any such Code Authority shall be deemed a 
violation of this Code. 

Rule 11. False Invoicing. 

No sale shall be made by any member upon any other terms, except 
as expressly set fortli in the order, contract of sale, or the invoice 
pertaining to such sale. 



356 

Article VIII — MoniFiCATioN 

Section 1. President May Modify ('ode. 

This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of subsection (1)) of Section 10 of the Act, from time to time, to 
cancel or modify any order, approval, license, rule, or regulation 
issued under said Act. 

Sec. 2. Amendment of Code. 

This Code, except as to provisions required by the Act, may be 
modified on the basis of exiDerience or changes in circumstances 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 Administrator. 

Article IX — Monopolies 

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

Article X — Effective Date 

This Code ghall become effective on the first Monday after its 
approval by the Administrator. 

Approved Code No. 221. 
Registry No. 3637-14. 

O 



Approved Code No. 222 

CODE OF FAIR COMPETITION 

FOR THE 

CARD CLOTHING INDUSTRY 

As Approved on January 23, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

CARD CLOTHING INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Card Clothing Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 

directed to the President : ^ , -tt • i 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of said 
Title of said Act ; and do hereby order that said Code of Fair Com- 
petition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Indmtrial Recovery. 

Approval recommended : 
Malcolm Muir, 

Division AdTninistrator. 

Washington, D.C, 

January 23, 193^. 

35373" 313-110 34 (357) 



The President, 

The White Eoiise. 
Sir: This is a report on the Code of Fair Competition for the 
Card Clothing Industry of the United States, as revised after a 
Public Hearing conducted in Washing-ton on November 24, 1933, in 
accordance with the provisions of the National Industrial Recovery 
Act. 

Pro\t[Sions for Hours akd Wages 

Factory employees are limited to 40 hours per week and 8 hours 
per day; except during periods of emergency production when 48 
hours per week will be permitted in any 6 weeks of a.ny 6-month 
period, when time and a half will be paid for hours worked in ex- 
cess of the above maximum. 

Exceptions to the above maximum hours apply to those engaged 
in care and maintenance work, stock clerks and delivery employees 
who are provided a tolerance of 10 percent over 40 hours in a.ny 6 
weeks of any 6-month period, and to watchmen who will be limited 
to 56 hours and 6 days per week. Office employees are limited to 40 
hours per week on a monthly average, and 48 hours per week. The 
hour limitation will not apply to outside salesmen and those in an 
executive or supervisory capacity receiving more than 35 dollars per 
week. 

The minimum wage to all factory employees will be 40 cents per 
hour, except to apprentice card setters who will receive not less than 
80 percent of this minimum for the first 60 days of their employment, 
and to those mentally and physically handicapped. The minimum 
for office employees will be 15 dollars per week. 

Child Labor 

The minimum age in the Industry will be 16 years, except in 
hazardous occupations where the minimum will be 18 years. 

Economic Effect of the Code 

With the reduction in hours from approximately 50 per week to 
the 40 hours per week specified in the Code, the Industry estimates 
that both employment and purchasing power of employees will be 
increased approximately 20 percent with the return of normal busi- 
ness in the textile industry. 

Until the passage of the National Industrial Recovery Act this 
Industry had not been organized as a unit. The 10 members of the 
Industry belong to the Card Clothing Manufacturing Association, 
the proponents of the Code. 

(358) 



359 

While the total yearly sales are comparatively small, the Industry 
is an important one. Card clothing is the medium which in textile 
machinery does the actual work of carding or combing out the cot- 
ton, wool, and other textile fibers, and also of raising the nap on 
cloth in the finishing process. As working tools, the delicate wire 
teeth of card clothing are subject to constant strain and wear, and 
the material must be replaced at frequent intervals. 

The aggregate number of employees in the Industry in 1929 was 
500, while in 1932 they declined to approximately 400. 

Findings 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter; 

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof, and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agri- 
cultural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant group 
is an industrial group truly representative of the aforesaid Industry ; 
and that said group imposes no inequitable restrictions on admission 
to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 

For these reasons, this Code has been approved by me. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
January 23, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

CARD CLOTHING INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are submitted as a Code of Fair 
Competition for the Card Clothing Industry, and upon approval 
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 following terms are used herein with the meanings set forth 
below : 

Section 1. " Card Clothing Industry " or the " Industry " — ^the 
manufacture for sale, and the sale by the manufacturer, of Card 
Clothing, which consists of wire teeth inserted into a foundation 
made of cotton, woolen, or linen cloth, felt, rubber, leather, or com- 
binations thereof, used to cover or clothe parts of carding, napping, 
or brushing machines. Carding machines straighten and otherwise 
prepare textile or asbestos fibers for spinning into yarn, etc. Nap- 
ping or brushing machines raise the ends of fibers in manufactured 
cloth. 

Sec. 2. " Employee " — anyone engaged in the Industry in any ca- 
pacity, receiving compensation for his services, irrespective of the 
nature or method of payment of such compensation. 

Sec. 3. " Employer " — anyone by whom an}^ such employee is com- 
pensated or employed. 

Sec. 4. " Member of the Industry " — anyone engaged in the In- 
dustry as above defined, either as an employer or on his own behalf. 

Sec. 5. "Association " — the Card Clothing Manufacturers Associa- 
tion. 

Sec. 6. " Effective date " — the fifth day after approval of this 
Code by the President. 

Sec. 7. " President ", "Act ", and "Administrator " — respectively, 
the President of the United States, the National Industrial Recov- 
ery Act, and the Administrator of Title I of said Act. 

Article III — Hours 

Section 1. No employee, except as hereinafter provided, shall be 
permitted to work in excess of forty (40) hours per week, or in 

(3G0) 



361 

excess of eight (8) hours per day; 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 per- 
mitted to work not more than forty-eight (48) hours per week in 
any six (6) weeks in any six (6) months' period. Time and one 
half shall be paid for all hours worked in excess of eight (8) hours 
per day or forty (40) hours per week. 

Sec. 2. There shall be a tolerance of ten (10) percent additional 
hours for employees engaged in the preparation, care, and mainte- 
nance of plant, machinery, and jDroduction facilities, and for stock 
and shipping clerks, and delivery employees, provided that such tol- 
erance 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. 

Sec. 3. The limitation as to hours of labor shall not apply to 
commercial traveling salesmen, or to persons in a managerial, execu- 
tive, or supervisory capacity who receive more than thirty-five (35) 
dollars per week. 

Sec. 4. No employer shall work any accounting, clerical, service, 
sales, or other office employee more than forty (40) hours per week 
on a monthly average, nor more than forty-eight (48) hours in any 
one week. 

Sec. 5. Watchmen may be permitted to work not more than fifty- 
six (56) hours in any one week, nor more than six (6) days in any 
seven (7) day period. 

Sec. 6. No employee shall work or knowingly be permitted to work 
for a total number of hours in excess of the number of hours pre- 
scribed for each week and day, whether employed by one or more 
employers. 

Article IV — Wages 

Section 1. The minimum wage that shall be paid to any employee, 
except as hereinafter provided, shall be not less than forty (40) 
cents per hour. 

Sec. 2. All employees mentioned in Section 4, Article III, shall 
be paid at the rate of not less than fifteen (15) dollars per week; 
provided, however, that office boys under eighteen (18) years of 
age may be paid at the rate of not less than eighty (80) percent of 
the minimum wage stipulated in this Section 2; provided further, 
that the number of office boys shall not exceed five (5) percent of 
the total number of employees of any employer, covered by this sec- 
tion; provided further, that where the total number of such em- 
ployees is less than twenty (20), an employer shall be entitled to at 
least one (1) office boy. 

Sec. 3. (a) 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 eighty (80) percent of the minimum pre- 
scribed by this Code, provided the State Authority or agency desig- 
nated by the United States Department of Labor shall have issued 
a certificate authorizing his employment on such basis. Each mem- 
ber of the Industry shall file with the Code Authority a list of all 
such persons employed by him. 



362 

(b) Apprentice card setters, for the first sixty (60) days of their 
employment, shall be paid at a rate of not less than eighty (80) per- 
cent oi the minimum wage provided in Section 1 of this Article IV. 
The total number of such apprentices shall not exceed five (5) per- 
cent of the total number of card setters of any one employer; pro- 
vided, however, that each employer shall be entitled to at least one 
(1) such apprentice. 

Sec. 4. Female emi:)loyees performing substantially the same work 
as male employees shall receive the same rate of pay as male em- 
ployees. Each member of the Industry shall, within ninety (90) 
days after the effective date of this Code, file with the Code Authority 
a description of all occupations in which both men and women are 
employed. 

Sec." 5. This Article establishes minimum rates of pay regardless 
of whether the employee's compensation is based on a time rate, 
piece-work performance, or otherwise. 

Sec. 6. The hourly rate, base piece-work rate, or salary of all em- 
ployees receiving more than the minimum rate or salary shall be 
equitably readjusted (but in no case reduced) unless such read- 
justment has already been made because of the operation of the 
President's Reemployment Agreement. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industry and no one under eighteen (18) years of 
age shall be employed at operations 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 age certificates or permits, 
showing that the employee is of the required age. Each member 
of the Industry shall submit to the Code Authority within thirty 
(80) days after the effective date of this Code a list of hazardous 
occupations. 

Sec. 2. Employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives, or 
in self -organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

Sec. 3. No employee and no one seeking employment shall be 
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. 

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

Sec. 5. 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. 



363 

Sec. 6. No employer 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. 

Sec. 7. All employers shall post copies of Articles HI, IV. and V 
of this Code in conspicuous places accessible to emploj^ees. 

Sec. 8. Every employer shall make reasonable provisions for the 
safety and health of his emplo3^ees at the place ancl during the hours 
of their employment. Standards for safety and health shall be sub- 
mitted to the Code Authority by each member of the Industry within 
six (6) months aft^r the effective date of this Code. 

Sec. 9. No provision in this Code shall supersede provisions as to 
hours, wages, and conditions of employment which are established 
for specific projects by competent goA^ermental authority acting in 
accordance with law, or to terms of employment which are established 
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. 

Article VI — Administration 

To further effectuate the policies of the Act, a Code Authority is 
hereby constituted : 

Section 1. Organization and constitution of Code Authority : 

(a) The Code Authority shall consist of three (3) individuals, or 
such other nmnber as may be approved from time to time by the 
Administrator, to be selected as hereinafter set forth. The Admin- 
istrator, in his discretion, may appoint one to three additional mem- 
bers (without vote) to represent the Administrator or such groups 
or interests as may be agreed upon. 

(b) The Code Authority shall consist of tliree (3) individuals to 
be elected in the following manner by the members of the Industry 
who have complied with the provisions of Section 4 of this 
Article VI : 

One (1) by equal vote of each member of the Industry so entitled 
to vote. 

Two (2) by weighted vote based on the number of card setting 
machines owned by each member of the Industry so entitled to vote, 
each member to have one vote for each card setting machine owned 
at the time of balloting. 

Votes for electing members of the Code Authority, as above speci- 
fied, may be cast in person or by proxy at a meeting assembled for 
such purpose or may be cast by letter ballot. 

(c) Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall: 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, by- 
laws, regulations, and any amendments when made thereto, together 
with such other information as to membership, organization, and ac- 
tivities 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- 



364 

ings as he may deem proper ; and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other re- 
spects comply with the provisions of the Act, may require an appro- 
priate modification in the method of selection of the Code Authority. 
Sec. 2. The Code Authority shall have the following duties and 
powers to the extent permitted by the Act; provided, however, that 
if the Administrator shall determine that any action of a code au- 
thority or any agency thereof is unfair or unjust or contrary to the 
public interest, the Administrator may require that such action be 
suspended for a period of not to exceed thirty (30) days to afford an 
opportunity for investigation of the merits or such action and further 
consideration by such code authority or agency pending final action, 
which shall be taken only upon approval by the Administrator : 

(a) Present to the Administrator recommendations based on con- 
ditions in the Industry as they may develop from time to time which 
will tend to effectuate the operation of the provisions of this Code 
and the policy of the National Industrial Recovery Act. Such rec- 
ommendations shall, upon approval by the President become opera- 
tive as a part of this Code. 

(b) 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. 

(c) Investigate and inform the Administrator on behalf of the 
Industry as to the importation of competitive articles into the United 
States in substantial quantities or in increasing ratio to domestic 
production on such terms or under such conditions as to render inef- 
fective or seriously to endanger the maintenance of this Code, and 
as an agency for making complaint to the President on behalf of the 
Industry, under the provisions of the Act, with respect thereto. 

(d) Hear and attempt to adjust complaints in accordance with 
law ; approve standard forms of contracts which shall be subject to 
the approval of the Administrator; consider proposals for amend- 
ments to this Code and make recommendations to the Administrator 
thereon. 

(e) Make rules and regulations necessary for the administration 
of this Code, subject to the right of any affected person to appeal to 
the Administrator. 

Sec. 3. In order to provide data necessary for the administration 
of this Code, all members of the Industry shall furnish to the Code 
Authority such information or reports as may be required, subject 
to the approval of the Administrator. Such information as may be 
submitted by a member shall not be revealed to anyone not a member 
of the Code Authority but shall at all times be available to the 
Administrator. 

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. The 
reasonable share of the expenses of administration shall be deter- 
mined by the Code Authority, subject to review by the Administra- 
tor, on the basis of volume of business and/or such other factors as 
may be deemed equitable to be taken into consideration. 



365 
Article VII — Trade Practices 

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

Section 1. False Marking or Branding: False marking or brand- 
ing of any product of the Industry which has the tendency to mis- 
lead or deceive customers or prospective customers, whether as to 
the grade, quality, quantity, substance, character, nature, origin, size, 
finish, or preparation of any product of the Industry, or otherwise. 

Sec. 2. Misrepresentation or False or Misleading Advertising: 
Making, causing, or knowingly permitting to be made or published, 
any false, materially inaccurate, or deceptive statement by way of 
advertisement or otherwise, whether concerning the grade, quality, 
quantity, substance, character, nature, origin, size, finish, or prepa- 
ration of any product of the Industry, or the credit terms, values, 
policies, or services of any member of the Industry, or otherwise, 
having the tendency or capacity to mislead or deceive customers or 
prospective customers. 

Sec. 3. Commercial Bribery: Giving, permitting to be given, or 
directly offering to give, anything of value for the purpose of influ- 
encing or rewarding the action of any employee, agent, or representa- 
tive of another in relation to the business of the employer of such 
employee, the principal of such agent or the represented party, with- 
out the knowledge of such employer, principal or party; provided, 
however, that this 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 defi.ned. 

Sec. 4. Interference with Contractual Relations: Maliciously in- 
ducing or attempting to induce the breach of an existing oral or 
written contract between a competitor and his customer or source of 
supply, or interfering with or obstructing the performance of any 
such contractual duties or services. 

Sec. 5. Secret Rebates: Secretly paying or allowing rebates, re- 
funds, commissions, credits, or miearned discounts, whether in the 
form of money or otherwise, or the secret extension to certain pur- 
chasers of special services or privileges not extended to all purchasers 
on like terms and conditions. The giving of extended time beyond 
the regular established net payment period filed with his prices by 
each member of the Industry is to be construed as unearned discount, 
unless interest is charired at the rate of six (6) percent per annum. 

Sec. 6. Giving of Prizes, Premiums, or Gifts : Giving or offering 
to give prizes, premiums, or gifts in connection with the sale of prod- 
ucts of the Industry or as an inducement thereto, by any scheme 
which involves lottery, misrepresentatioUj or fraud. 

Sec. 7. Defamation : Defaming competitors by falsely imputing to 
them dishonorable conduct, inability to perform contracts, question- 
able credit standing, or by other false representations or by the false 
disparagement of the grade or quality of their goods. 

Sec. 8. Threats of Litigation : Publishing or circulating threats 
of suits for infringement of patents or trade marks or of any other 
legal proceedings not in good faith, with the tendency or effect of 
harassing competitors or intimidating their customers. 



366 

Sec. 9. Espionage of Competitors : Securing confidential informa- 
tion concerning the business of a competitor by a false or misleading 
statement or representation, by a false impersonation of one in 
authority, by bribery, or by any other unfair method. 

Sec. 10. Selling or offering to sell at variance from filed price 
lists : Selling or offering to sell at prices different from prices filed 
with the Code Authority as hereinafter provided in Section 11, 
Article VII. 

Sec. 11. Publication of Prices: Failing to file with the Code 
Authority within ten (10) days after the effective date of this Code 
a complete schedule of prices and terms of sale, with sufficient copies 
for all members of the Industry. The schedule of prices filed by a 
member of the Industry shall not be changed except by filing, as 
above provided, a new complete schedule of prices and terms of sale, 
which shall become effective five (5) days after the date on which 
such new price schedule shall have been so filed. During the above 
five (5) day period, any competitor shall have the privilege of filing 
with the Code Authority, as above provided, new prices to become 
effective on the same date. The Code Authority shall cause a copy 
of all price lists filed to be promptly sent to all members of the 
Industry. For a period of ten (10) days beginning with the date on 
which the new prices become effective, the member of the Industry 
may accept orders upon quotations which were outstanding at the 
time of filing such prices. 

Sec. 12. Selling Below Cost: Selling or offering to sell products 
of the Industry below individual's cost, except 

(a) To meet competition of another member's lower cost, pro- 
vided such competition is not instigated directly or indirectly by the 
member desiring to meet such competition, and 

(b) To meet competition in violation of this rule concerning which 
he has made complaint to the Code Authority or any autnorized 
agency thereof, but only pending action thereon. 

Cost for the purpose of this Section 12 shall be determined by a 
method of cost accounting subject to the approval of the Adminis- 
trator to be adopted by the Code Authority within sixty (60) days 
after the effective date of this Code and to be used by all members 
of the Industry in determining cost. 

Section 13. Guarantees against price changes : Making or giving, 
or offering to make or give guarantees or protection in any form 
against changes in prices beyond a period oi fifteen (15) days. 

Article VIII — 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 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 
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 or supplemented on the basis of experience or 



367 

changes in circumstances, such modification to be based upon appli- 
cation by the Code Authority to the Administrator with such notice 
of hearing as he shall specify, and to become effective on approval 
by the President. 

Article IX — Monopolies, Etc. 

No provision of this Code shall be so applied as to permit monop- 
olies or monopolistic practices, or to eliminate, oppress or discrimi- 
nate against small enterprises. 

Article X — Price Increase 

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

Article XI — Effective Date 

This Code shall become effective on the fifth day after its approval 
by the President and shall be binding upon every member of the 
Industry. 



Approver! Code No. 222. 
Registry No. 1333-11. 



O 



Approved Code No. 223 

CODE OF FAIR COMPETITION 

FOR THE 

CONSTRUCTION MACHINERY DISTRIBUTING 

TRADE 

As Approved on January 23, 1934 



ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

CONSTRUCTION MACHINERY DISTRIBUTING 

TRADE 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code 
of Fair, Competition for the Construction Machinery Distributing 
Trade, and hearings having been duly held thereon and the annexed 
report on said Code, containing findings with respect thereto, having 
been made and directed to the President : 

XOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6513-A, dated December 30, 
1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that .said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act ; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Industnal Recovery. 

Approval Recommended : 

Malcolm Muir, 

Division Adiiimistrator. 

Washington, D.C, 

Jamiary 23, 1934-. 

33367° 313-112 34 (369) 



The President, 

The White House. 

Sir : This is a report on the Code of Fair Competition for the 
Construction Machinery Distributing Trade in the United States, 
as revised after a Public Hearing, conducted in Washington on 
October 9, 1933, in accordance with the provisions of the National 
Industrial Kecovery Act. 

PROVISIONS FOR WAGES AND HOURS 

A maximum work week of forty (40) hours, and not to exceed 
eight (8) hours per day is adopted under the Code, with provision 
for peak periods of forty-eight (48) hours per week for not more 
than three (3) weeks of any six (6) months' period. Executives 
receiving more than thirty-five (35) dollars per week and outside 
salesmen are excepted from the schedule of maximum hours, while 
outside service employees, those engaged in plant maintenance, and 
stock room employees may work a maximum of forty-eight (48) 
hours per week with payment of time and one-third for all hours 
worked in excess of forty (40) hours per week. Watchmen may 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. 

The minimum wage for all hourly rated employees will be not 
less than forty (40) cents per hour, except that learners may be paid 
at the rate of not less than eighty (80) percent of this minimum wage 
for the first six (6) months of their employment. The number of 
such learners shall not exceed five (5) percent of the total employees. 

Clerical employees will be paid at the rate of not less than fifteen 
(15) dollars per week, while office boys will be paid at not less than 
eighty (80) percent of this rate. 

The Code has a provision for equitable adjustment of all pay 
schedules in excess of the minimum provided. 

CHILD LABOR 

The minimum age of employees will be sixteen (10) years, except 
in hazardous occuj)ations, where the minimum is raised to eighteen 
(18) years. . ■ 

ECONOMIC EFFECT OF THE CODE 

The forty (40) hour week stipulated in the Code is a reduction 
from a former average of fifty (50) hours, and the Trade estimates 
that under the Code employment will be increased approximately 
fifteen (15) percent. 

Minimum wage rates specified represent an increase of approxi- 
mately twelve (12) percent over the wages prevailing before the 
adoption of the hourly schedule called for in this Code. 

TJie three b.undred and eiglity (380) companies in the Trade em- 
ployed five thousand (5,000) men in 1929; this number declined to 

(370) 



371 

four thousand five hundred (4,500) in 1932, a drop of ten (10) per- 
cent. Sales during this period declined to twenty-one (21) percent 
of the 1929 figure. 

This Trade distributes road machinery and other classes of con- 
struction machinery and equipment. Activity in the Trade neces- 
sarily follows the building programs of the country and the Trade 
has suffered severely because of the lack of building during the last 
four years. A realization of the expected increase in construction 
activity will mean a rapid rise in employment in this Trade. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having founcl as herein set forth and on the basis of all the pro- 
ceedings in this matter ; 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanctions and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Trade normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all resjDects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Sex?tion 10 thereof; and that the applicant associa- 
tion is a trade association truly representative of the aforesaid 
Trade; and that said association imposes no inequitable restrictions 
on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
snuill enterprises and will not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said 
Code. 

For these reason,s, this Code has been approved by me. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
January 23, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

CONSTRUCTION MACHINERY DISTRIBUTING TRADE 

Article I — Purposes 

To effectuate the policy of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Code of 
Fair Competition for the Construction Machiner}^ Distributing 
Trade and upon approval by the President shall be the standard 
of fair competition for such Trade and shall be binding upon every 
member thereof. 

Article II — Definitions 

The term " Construction Machinery ", or " Machinery ", as used 
herein, shall include any machinery, equipment, or attachments used 
in the construction or maintenance of any project, but not becoming 
a permanent part of the structure or of its operation. 

The term " Construction Machinery Distributor ", or " Distribu- 
tor", as used herein, shall include any person, other than a manu- 
facturer, who warehouses, sells, or distributes construction machinery 
as herein above defined. 

The term " Construction Machinery Distributing Trade "', or 
" Trade ", as used herein, includes distributors as herein above 
defined. 

The term " Member of the Trade " as used herein includes anyone 
engaged in the Trade as above defined either as an employer or on his 
own behalf. 

The term " Employee " as used herein includes anyone engaged in 
the Trade in any caj^acity receiving compensation for his services, ir- 
respective of the nature or method of payment of such compensation. 

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

The term " Learner " as used herein is a person having no previous 
experience in the Trade, and whose employment in the Trade as such 
shall not exceed six (6) months. 

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

The term " Effective Date " as used herein means the second Mon- 
day after the Code shall have been approved by the President of the 
United States. 

(372) 



373 
Article III — Hours 

Section 1. No employee, except as hereinafter iDrovided, shall be 
permitted to work in excess of eight (8) hours per da}^ or in excess 
of forty (40) hours per week or in excess of six (6) days in any one 
week; provided, however, that during inventory and other peak 
periods, an employee may be permitted to work not in excess of forty- 
eight (48) hours per week in any three (3) weeks in any six (6) 
month's period. 

Sec. 2. The limitation as to hours of work shall not apply to per- 
sons in a managerial, executive, or supervisory capacity, who receive 
more than thirty-five (35) dollars per week, and outside salesmen. 

Watchmen shall not be permitted to work in excess of fifty-six 
(56) hours per week nor in excess of six (6) days in any seven (7) 
day period. 

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

Sec. 4. The total number of hours which shall be worked by any 
emplo3^ee whether with one or more employers, shall not exceed the 
maximum as prescribed herein. 

Article IV — Wages 

Section 1. The minimum wage that nuiy be paid by any employer 
to any employee, except as hereinafter provided, shall be not less 
than forty (40) cents per hour; provided, however, that learners 
may be paid at a rate of not less than eighty (80) percent of the 
above minimum rate ; 

Provided, further, that the number of learners receiving less than 
such minimum rate shall not exceed five (5) percent of the total 
number of employees of any one employer covered by this section; 
except in cases where the total number of such emploj'ees is less than 
twenty (20), not more than one such learner may be thus employed. 

Sec. 2. The minimum wage that may be paid by any employer to 
all clerical employees and salesmen (whether employed on a salaiy 
or commission basis) shall be at a rate of not less than fifteen (15) 
dollars per week; 

Provided, however, that office boys and girls may be paid at a 
rate of not less than eighty (80) percent of such minimum wage; 

Provided, further, that the number of such office boys and girls 
shall not exceed five (5) percent of the total number of employees 
of any one employer covered by this section; except in cases where 
the total number of such employees is less than twenty (20), not 
more than one such office boy or girl may be thus employed. 

Sec. 3. No employee whose normal full-time weekly hours for the 
four (4) weeks ending June 30, 1933, are reduced by less than twenty 
(20) percent, shall have his or her full-time weekly earnings re- 



374 

duced. Any employee whose said full-time weekly hours are re- 
duced by fifty (50) percent shall not have his or her said earnings 
reduced by more than twenty-five (25) percent. All other employees 
whose hours are reduced in excess of the said twenty (20) percent 
shall have their earnings adjusted proportionatel}'. 

Sec. 4. No person who has worked as a learner in the trade for 
the ])eriod of time prescribed in Article II may thereafter be 
classified as a learner. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (IG) years of age shall be 
employed in the Trade, nor anyone under eighteen (18) years of 
age at operations or occupations hazardous in nature or detrimental 
to liealth. 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 certifi- 
cate or permit duly issued by the Authority in such State empowered 
to issue employment or age certificates or permits showing that the 
employee is of the required age. 

Sec. 2. Employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or in 
self-organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection. 

Sec. 3. No employee and no one seeking employment shall be 
required as a condition of employment to join any company union 
or to refrain fTom joining, organizing, or assisting a labor organ- 
ization of his own choosing. 

Sec. 4. Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment, ap- 
proved or ])rescribcd by the President. 

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

Sec. 6. Employers shall not reclassify employees or duties of occu- 
pations performed bv employees so as to defeat the j^urposes of the 
Act. 

Sec. 7. Each employer shall post in conspicuous places Articles 
III. IV. and V of this"^Code. 

Article VI — Administration 

Section 1. To further effectuate the policies of the Act, a Code 
Authority is hereby set up as a Supervisory Agency to cooperate 
with the Administrator in making investigations as to the function- 
ing and observance of any of the provisions of this Code, at its own 
instance, or on complaint by any person affected and to report the 
same to the Administrator. 

Sec. 2. Such Code Authority shall consist of three members 
chosen by the Executive Committee of the Associated Equipment 



375 

Distributors ; members of the Trade who assent to tlie Code but are 
not members of the Associated Equipment Distributors may, if they 
desire, elect two additional members of said Code Authority in any 
fair manner approved by the Administrator. The Administrator 
may also appoint one to three additional members, Avithout vote, to 
gerve as representatives of the Government. Such governmental 
representatives are to be appointed for terms of from six (6) months 
to one (1) year, and if more than one is appointed, their terms are 
to be arranged so that they do not expire at the same time. The 
Code Authority shall have authority to establish subcommittees and 
state, regional, or local committees, with such delegated powers as it 
may deem necessary. 

Sec. 3, (a) Any member of the Trade may become a member of 
the Associated Equipment Distributors and there shall be no in- 
equitable restriction on such membership. 

(b) Any member of the Trade may participate in and share the 
benefits of the activities of the Code Authority and participate in 
rhe selection of the members thereof to the same extent as the mem- 
bers of the Associated Equipment Distributors by assenting to and 
com.plying with the requirements of this Code and sustaining his 
reasonable share of the expenses of its administration. Such reason- 
able share of the expenses of administration shall be determined by 
the Code Authority, subject to review by the Administrator, on the 
basis of volume of business and/or such other factors as may be 
deemed equitable. 

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

Sec. 5. 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 
Authorit}^ is not truly representative or does not in other respects 
compl}' with the provisions of the Act, may require an appropriate 
modification in the method of selection of the Code Authority. 

Sec. 6. The Code Authority may require members of the Trade to 
make reports on such forms and in such manner as may be necessary 
properly to inform the President of the United States with respect 
to the observance of the Code, and to make recommendations to the 
Administrator for modification of the Code. 

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

Sec. 7. The Code Authority' shall study the trade-practice pro- 
visions of this Code and the operation thereof and shall make any 



376 

recommendations from time to time to the Administrator which it 
deems desirable for modification or addition thereto. 

Sec. 8. Any action taken by the Code Authority shall be subject 
to the right of the Administrator on review to approve or disapprove 
such action. 

Article VII — Trade Practices 

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

Section 1. Inducing or attempting to induce a breach of contract 
to which a member of the Trade is a party. 

Sec. 2. Enticing or attempting to entice the officers or employees 
of a competitor to violate their contract of employment; provided, 
however, that nothing in this Section 2 shall prevent an employer 
from employing the employees of another employer. 

Sec. 3. Paying or allowing secret rebates, refunds, unearned dis- 
counts or credits, either in the form of money or otherwise, or 
secretly extending to certain purchasers special services or privileges 
not extended to all purchasers on like terms or conditions. 

Sec. 4. Paying or agreeing to pay, directly or indirectly, a com- 
mission or consideration of any kind, except to persons regularly 
employed in the seller's organization or to regularlj^ established 
subdealers; provided, however, that nothing in this Section 4 shall 
be construed to prevent the allowance of discounts to customers as 
prescribed in the seller's published price lists and discount sheet. 

Sec. 5. Accepting or offering to accept used machinery or attach- 
ments, used ec|uipment, or other property in trade on the purchase 
price of new machinery or attachments, or allowing or granting 
credit, directly or indirectly, therefor; provided, however, that 
nothing herein contained shall be construed to prevent a member of 
the Trade from purchasing used machinery or equipment or other 
property as a separate and independent transaction. 

Sec. C. Selling below list price. No member of the Trade shall 
sell or offer to sell any new standard machinery, attachments, or 
equipment at a price lower or on terms more favorable than as 
stated in his published jDrice lists, or price lists with discount sheets, 
if any, filed in accordance with Article IX; provided, how^ever, that 
damaged, obsolete, noncurrent, and distress construction machinerj'', 
attachments, or equipment may be sold at such prices as are necesSsary 
to move the goods into buyers' hands, but only after filing with the 
Code Authority at least ten (10) days in advance of such sale a list 
showing the quantity and description of such machinery. 

Sec. 7. Quoting a lump-sum price on two or more pieces of equip- 
ment which does not show unit prices, or making additions or 
deductions on any other basis than the unit prices shown. 

Sec. 8. Making or offering to make any guarantee on machinery 
as to material and workmanship more liberal than the printed or 
written guarantee of the manufacturer of such machinery. 

Sec. 9. Accepting orders for future delivery subject to cancella- 
tion, except such orders as are contingent upon conditions affecting 
the purchaser, which conditions shall be clearly gtated in the order; 
provided, however, that after sixty (60) days from date of order no 



t5 



377 

coinpetitior shall be estopped under Section 1 of this Article VII 
from attempting to sell the purchaser machinery in lieu of that 
covered by such contingent order. 

Sec. 10. Misrepresenting the facts about a competitor or the goods 
which he sells. 

Sec. 11. ISIisrepresenting the facts about one's own company or the 
goods which it sells. 

Sec. 12, Quoting delivered i)rices or invoicing purchaser without 
adding, to the f,o,b, factory price, transportation and other charges, 
and failing to state in c^uotation, vdiere freight is to be prepaid, that 
such prepaid freight will be charged as a separate item and billed 
net cash. 

Sec. 13. Guaranteeing against advances and declines in prices of 
goods sold. 

Sec. 14. Allowing more than ninety (90) percent of the net selling 
prices as credit on returned goods when the distributor or manufac- 
turer is not at fault. 

Sec. 15. Discriminating between purchasers, by renting new ma- 
chines or attachments at less than a reasonable rental price or by 
allowing any of the first two months' rental or more than eighty (80) 
percent of rentals thereafter paid or accrued to be applied a.s partial 
payment or reduction of the list or net selling price on like new 
equipment where the transaction is later converted into a sale. 

Sec, 16. Selling a new machine or attachment subject to accept- 
ance after trial; provided, however, that this shall not prevent 
making and completing a sale subject to performance in compliance 
with specific guarantees. 

Sec. 17. Failing to require on installment sales at least twenty-five 
(25) percent cash payment before shipment or on delivery of the 
goods sold and the payment of the balance of the purchase price 
in monthly installments, the first installment to be payable in not 
more than sixty (GO) days from date of shipment, the last install- 
ment to be payable in not more than twelve (12) months from date 
of shipment. All installments shall be evidenced by notes bearing 
date of shipment and bearing interest at the rate of not less than 
six (G) percent per annum from date of shipment until paid. No in- 
stallment note shall be extended or renewed in whole or in part 
except for actual inability of the purchaser to make payments. No 
understanding for renewal or extension of any installment note shall 
be made prior to the sale of the goods to the purchaser. In the case 
of government or political subdivisions not less than twent3^-five (25) 
percent cash payment shall be made not later than the first regular 
meeting of the purchasing body subsequent to the date of delivery ; 
the balance of the purchase price may be spread over a period of not 
more than twelve (12) months from date of shipment and shall in- 
clude interest at not less than six (G) percent per annum from date of 
shipment to date of payment. 

Article VIII — Scope of Code 

Any member of the Trade may elect to be governed by either the 
fair trade practices as set forth in Article VII of this Code or by the 
fair trade practices set forth in the Code of Fair Competition of the 



378 

manufacturer or manufacturers of the goods which are sold by such 
member of the Trade. Any member of the Trade shall be conclu- 
sively presumed to have elected to be governed by the fair trade prac- 
tices of this Code unless he shall have filed notice of a contrary in- 
tention with the Code Authority of this Code and the Code Authority 
of the Code by the fair trade practices of which he elects to be gov- 
erned. Such election may be changed at any time upon notice filed 
with the said Code Authorities. Provided, however, that the fair 
trade practice provisions of Article VII of this Code shall not be 
binding upon any member of the Trade with respect to the Goods 
sold by the ultimate purchaser in competition Avith other sellers not 
members of this Trade, unless and until such other sellers of said 
competitive machinery are brought within the scope of the trade 
practice provisions of this or some other Code of Fair Competition. 

Article IX — Publicity or Prices 

Section 1. Each member of the Trade shall within thirty (30) 
days after the effective date of this Code file with the Code Author- 
ity copies of his price lists, with discount sheets, if any, showing 
prices for all machinery, attachments, and equipment which said 
member sells. Each member of the Trade shall at all times main- 
tain and file with the Code Authority price lists, with discount 
sheets, if any, showing prices of all of said machinery, attachments, 
and equipment and shall not make any change in said prices except 
by filing notice of such price changes as hereinafter provided. 

Sec. 2. None of the prices shown in any price lists, with discount 
sheets, if any, filed by any member of the Trade as herein provided, 
shall be changed except by filing by such member of the Trade of 
new price lists, with discount sheets, if any. When any member of 
the Trade has so filed changes in or revisions of his published price 
lists, with discount sheets, if any, any other jnember of the Trade 
may so file changes in or revisions of his i^nblished price lists, wdth 
discount sheets, if any, which, if filed prior to the date when the 
changes or revisions first filed become effective, shall become effective 
upon that date. 

Sec. 3. Each price list, with discount sheet, if any, shall become 
effective ten (10) days after the filing of such price list, with dis- 
count sheet, if any, w^ith the Code Authority; provided, how^ever, 
that the first price lists, with discount sheets, if any, filed by any 
member of the Trade as above provided, shall become effective on 
the date of filing thereof. 

Sec. 4. The operation of the foregoing shall at all times be subject 
to review and disapproval of the Administrator. 

Article X — 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 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 



379 

the right of the President to cancel or modify his approval of this 
Code or any conditions imposed by him upon his approval thereof. 
Sec. 2. This Code, except as to provisions required by the Act, 
may be modified on the basis of experience or changes in circum- 
stances, such modification to be based upon application to the Ad- 
ministrator and such notice and hearing as he shall specify, and to 
become effective on approval by the President. 

Article XI — 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 XII — Effective Date of this Code 

This Code shall become effective on the second Monday after 
its approval by the President and shall be binding upon every 
member of the Trade. 

Approved Code No. 223. 
Registry No. 1399-17. 

o 



Approved Code No. 224 

CODE OF FAIR COMPETITION 

FOR THE 

FURNITURE AND FLOOR WAX AND POLISH 

INDUSTRY 

As Approved on January 23, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

FURNITURE AND FLOOR WAX AND POLISH 

INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Eecovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Furniture and Floor Wax and Polish 
Industry, and hearings having been duly held thereon and the 
annexed report on said Code, containing findings with respect 
thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise: do hereby incorporate by reference said 
annexed report and do find that said Code complies i)i all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act ; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Adminktrator for Industnal Rccove)^. 

Approval reconmiended : 
Geo. L. Berry, 

Div is ion A dministrator. 

AVashington, D.C, 

January 23, 193 J^. 

35371° 313-116 34 (381) 



The President, 

The White Bouse. 
Sir: This is a report on the Code of Fair Competition for the 
Furniture and Floor Wax and Polish Industry, a hearing on which 
was conducted in accordance with the provisions of the National 
Industrial Recovery Act. The hearing was held in the Gridiron 
Room of the Hotel Willard in Washington on January 4, 1934. 

Provisions of the Code as to Wages and Hours 

This Code specifies, with the exceptions indicated that no employee 
shall be permitted to work in excess of 8 hours per day or an average 
of 40 hours per week in any three-month period, but in no case, except 
that of watchmen, in excess of 48 hours in any one week. From these 
provisions there are exempted the following classes of emplo3^ees : 

(a) Technical 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; em- 
ployees in a managerial, supervisory, or executive capacity who 
receive $35 or more per week; supervisors or highly skilled w^orkers 
in continuous processes wdiere restriction of hours would unavoidably 
reduce production and who receive $35 or more per week ; employees 
on emergency, maintenance, and repair work; and outside salesmen. 

(b) Employees on automotive or horse-draAvn passenger, express, 
delivery, or freight service — who shall not be permitted to work in 
excess of an average of 44 hours per week in any three-month period. 

(c) Engineers, firemen, water tenders, and oilers, who shall not be 
permitted to work in excess of 48 hours a week. 

(d) Watchmen, who shall not be permitted to work in excess of 
56 hours per week. 

Provision is made for payment at the rate of time and one third 
for overtime with minor exemptions specified. 

The Code provides for a minimum wage of 40 cents per hour 
except as follows : 

(a) Employees engaged in the light tasks of wrapping, packaging, 
filling, and labelling, who shall be paid not less than 35^/i per hour. 

(b) Office boys and office girls may be employed at a rate not less 
than $12 per week, provided, however, that not more than 5% of 
the total number of office employees of each establishment may be 
so classified and further provided, that each establishment may be 
entitled to at least one such employee. 

The minimum wage for employees engaged in the light packaging, 
wrapping, filling, and labelling operations above indicated, is not 
discriminatory against female employees. It has been stated that 
about as many men as women are employed in this operation in the 
Industry. 

(38-:) 



383 
Economic Effect of the Code 

The Code was presented by the National Polish and Mop Manu- 
facturers Association and the National Association of Chemical Spe- 
cialty Manufacturers. These groups, combined, are said to represent 
seventy-five percent of the sales volume of the industry. The pres- 
entation of the Code by the two groups reflects a desire upon the 
part of the Industry to cooperate under the terms of the Act and 
Code. 

The Industry is reported to consist, essentially, of about 250 con- 
cerns which are engaged in the manufacture, including packaging, 
of products containing wax and/or oil compounds for use in the 
treatment of floors and furniture. There are about ten large con- 
cerns which employ upwards of 35 persons each, a few slightly 
smaller ones, and a large number of one or two-man establishments. 
These smallest establishments may be independent and owner-oper- 
ated or they may represent a side-line or by-product activity of con- 
cerns whose chief products are paint, various kinds of polishes, soap, 
oils, chemical specialties, mops, etc. About 10% of manufacturers' 
sales are in bulk implying the use of five-gallon or larger containers 
and made either to large consumers or packaging concerns. The 
greater part of the products of the Industry is sold in small units 
through regular distributing channels of the hardware and grocery 
trades. 

Since tlie products are chiefly semiluxuries, the demand for them 
is largely influenced by general business conditions, that is, by the 
amount of money that people have to spend for other than absolute 
necessities. 

There are two seasonal peaks, spring and fall, in the demand. 
Although the larger firms make efforts to anticipate peak demands 
by building up stocks to some extent, there are practical difficulties 
that prevent storing for long periods. Limitations of working capi- 
tal tend to restrict manufacture for stock especially by the small 
concerns. 

Manufacture is so widespread and so relatively easy to start on a 
small scale that there is generally sharp competition for all available 
business both among nationally advertised brands and between these 
and purely local products. 

From current data, the Industry may be said to employ about 2,500 
persons. This figure indicates a drop in employment since 1928, 
when, it is estimated, 3,100 persons were employed. 

The aggregate production capacity for the Industry is computed 
to be $40,000,000. Aggregate annual sales in 1928 are stated to have 
dropped in 1933' to $9,530,000 as compared with $14,660,000 in 1928. 

The Industry, working under a general 49-hour week, has restored 
employment practically to the 1928 figures. Furtlier improvement 
in general business conditions invoking the overtime provision of 
the Code, as provided for peak periods, should result in additional 
employment. 

The Code provides a minimum hourly rate of 35 cents per hour 
for employees engaged in light tasks of wrapping, packaging, etc., 
and a minimum of 40 cents for all other classes of emploj^ees except 
office boj's and girls. 



384 

Operating on minimnm hourly rates of 32.5 cents and 35 cents per 
hour, respectively, for the two classes of work, under the President's 
Reemployment Agreement, minimum weekly earnings were higher in 
October 1933 than in June 1928. Application of the Code provisions 
should increase minimum wages somewhat further. 

Payrolls, it has been estimated, will be increased about 10% under 
the application of the Code's labor provisions. This should restore 
payrolls to a point somewhat above that of 1928. 

Findings 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the pro- 
ceedings in this matter; 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanctions and supervi- 
sion, by eliminating unfair competitive practices, by promoting the 
fullest possible utilization of the present productive capacity of 
industries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, by producing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof; and that the applicant 
associations are industrial associations truly representative of the 
aforesaid Industry; and that said associations impose no inequi- 
table restrictions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 
not been deprived of the right to be heard prior to approval of said 
Code. 

For these reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Ad^ninistrator. 
January 23, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

FURNITURE AND FLOOR WAX AND POLISH 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 Furniture and Floor Wax and Polish In- 
dustry, and shall be the standard of fair competition for such indus- 
try and shall be binding upon every member thereof. 

Article II — Definitions 

The term " industry " as used herein includes the manufacture, 
including packaging, of products containing wax and/or oil com- 
pounds as essential constituents, for use in the treatment of floors 
and furniture, and such related industries as may from time to time 
be included under the provisions of this Code, 

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

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

The term " member of the industry " includes anyone engaged in 
the industry as above defined, either as employer or on his own 
behalf. 

The term "Associations " as used herein means the National Polish 
and Mop Manufacturers Association and the National Association of 
Chemical Specialty Manufacturers. 

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 Administra- 
tor for Industrial Recovery. 

Article III — Hours 

A. No employee shall be permitted to work in excess of 8 hours 
per day or an average of 40 hours per week in any three-month 
period, but in no case in excess of 48 hours in any one week, except 
as follows : 

1. Technical or professional employees, such as chemists, engaged 
in their technical or professional capacity,- who receive more than 

(385) 



386 

$35 per week, but not including skilled operating personnel; em- 
ployees in a managerial, supervisory, or executive capacity who 
receive $35 or more per week; supervisors or highly skilled workers 
in continuous processes where restriction of hours would unavoidably 
reduce production and who receive $35 or more per week; employees 
on emergency maintenance and repair work; and outside salesmen. 

2. Employees on automotive or horse-drawn passenger, express, 
delivery, or freight service, who shall not be permitted to work in 
excess of an average of 44 hours per week in any three-month period 
or in excess of 48 hours in any calendar week. 

3. Engineers, firemen, water tenders, and oilers, who shall not be 
permitted to work in excess of 48 hours a week. 

4. Watchmen, who shall not be permitted to work in excess of 
56 hours per week. 

B. If any employee, with the exception of those employees included 
in Section A (I) who receive $35 or more per week, outside salesmen 
and watchmen — but not including employees on emergency mainte- 
nance and repair work — w^orks in excess of 8 hours in any 24-hour 
period, or in excess of 40 hours in any calendar week, the wage paid 
for excess hours shall not be less than one and one third the regular 
rate. 

C If any emploj^ee works for more than one employer, no such 
employer or employers shall knowingly permit any employee to Avork 
for a total number of hours in excess of the number of hours pre- 
scribed, and all emplo3^ers in the industry shall exercise due dili- 
gence to carry out the purpose of this section. 

D. No employee shall be permitted to work more than six days in 
any calendar week. 

Article IV — ^Wages 

A. No employees shall be paid less than 400 per hour, except as 
follows : 

1. Employees engaged in the light tasks of Avrapping, packaging, 
filling, and labeling, who shall be paid not less than 350 per hour. 

2. Office boys and office girls may be emploj^ed at a rate not less 
than $12 per week, provided, however, that not more than 5% 
of the total number of office employees of each establishment may 
be so classified and further provided, that each establishment may 
be entitled to at least one such employee. 

3. This article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time rate, piecework, or 
other basis. 

4. Female employees performing substantially the same work as 
male employees shall receive the same rates of pay as male employees. 

5. Employers shall adjust wage schedules in equitable relation to 
the minimum hourly rates provided in this Article, so far as such 
adjustments have not been made subsequent to June 16, 1933. In no 
case shall hourly rates be reduced. Each member of the Industry 
.shall promptly report all such adjustments to the Code Authority. 

6. An employee shall receive all money due for services rendered 
in the form of negotiable currency or checks without deduction there- 
from except with his assent or as required by Federal or State laws. 



387 
Article V — General Labor Provisions 

1. No person under IG years of age shall be employed in the indus- 
try, nor anyone under 18 years of age at operations or occupations 
hazardous in nature or detrimental to health. A list of all such 
ha2iardous occupations shall be filed with the Code Authority within 
90 da3^s from the effective date. In any State an employer shall be 
de£med 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, showing that the 
employee is of the required age. 

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

3. No employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to re- 
frain from joining, organizing or assisting a labor organization of 
his own choosing; 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 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 or engage in any other subterfuge so 
as to defeat the purposes of this Code, and in this connectionem- 
ployees engaged in two or more capacities or positions having differ- 
ent duties connected therewith, one or more of which being limited 
by maximum hours, shall be classified under the limited hour posi- 
tion which is limited to the fewer number of hours per week and 
shall not be permitted to Avork a total number of hours in excess of 
those prescribed for such position. 

7. Employers shall make reasonable provision for the safety and 
health of their employees at the place and during the hours of their 
employment. 

8. An employer shall, to the best of his ability, so administer work 
in his charge as to provide the maximum practical continuity of 
employment for his personnel. Each member of the Industry shall 
make a study and submit a plan for regularization and stabilization 
of employment in his plant and shall submit such plan to the Code 
Authorit3\ 

9. Each employer shall post in places accessible to employees full 
copies of the labor provisions of this Code. 



388 
Article VI — Administration 

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

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of 7 members of the industry, 
or such other number as may be approved from time to time by thft 
Administrator, to be selected as hereinafter set forth. The Ad- 
ministrator ma^y appoint not more than 3 additional members with- 
out vote to represent the Administrator, without expense to the 
Industry. 

(b) The members of the Code Authority shall be selected by the 
industry at a meeting of the members of the industry to be called 
by the Associations within 20 days after the approval of this Code. 
The method of selection of the Code Authority shall be fair and 
equitable and subject to the approval of the Administrator. 

(c) Related industries, which may from time to time be included 
under the provisions of this Code with the approval of the Admini- 
strator, may establish their own subordinate Code Authorities which 
shall be independent and self-supporting, and may deal, under the 
supervision of the main Code Authority, with the Administrator 
in respect to conditions or problems relating exclusively to said 
related industries and may amend the application of the provisions 
of this Code to its members. The subordinate Code Authority of 
such related industries shall be entirely responsible for the Adminis- 
tration of this Code to such industry. 

(d) The Association shall: (1) Impose no inequitable restrictions 
on membership, and (2) submit to the Administrator true copies 
of their 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 Code. 

(e) In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with 
the provisions of the Code, 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 Code, may require 
an appropriate modification in the composition and method of selec- 
tion of the Code Authority. 

2. The Code Authority shall have the following duties and powers 
to the extent permitted by the Code : If the Administrator shall 
determine that any action of the Code Authorit}?^, or any agency 
thereof, is unfair, unjust, or contrary to the public interest, the Aci- 
ministrator may require that such action be suspended for a period 
of not to exceed thirty days, to afford an opportunity for investi- 
gation of the merits of such action and further consideration by 
such Code Authority or agency pending final action, which shall be 
taken only upon approval by the Administrator. 

(a) With a view to informing the Administrator as to the observ- 
ance of this Code, and as to whether the industry is taking appro- 
priate stej^s to effectuate the policy of the Act, each member of the 



389 

industry shall furnish duly certified reports in the form and sub- 
stance and as required for the proper administration of this Code. 
The Code Authority is hereby constituted as the agency for the col- 
lection and receipt of such reports and the for^yarding of such re- 
ports to the Administrator. AH such reports sliall be held in strict 
confidence b}^ the Code Authority, or any agency to which it may 
delegate this dut}'^ except when they shall be required by the Ad- 
ministrator 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 
Administrator in making investigations as to the functioning and 
observance of any provisions of this Code, 

(d) 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 expenses of its administration. The reason- 
able share of the expenses shall be determined by the Code Author- 
ity, subject to review by the Administrator, on the basis of volume 
of business and/or such other factors as may be deemed equitable. 

(e) To study, in cooperation with such recognized organizations 
a^ the Bureau of Standards, establishment of classifications and 
standards of quality for products of the industry, with the view to 
their recommendation to and adoption by the industry. 

3. In addition to information required to be submitted to the 
Code Authority, all members of the Industry shall furnish such 
statistical information as the Administrator may deem necessary for 
the purposes recited in Section 3 (a) of the Act to such Fecleral 
and/or State agencies as he may designate; nor shall anything in 
this Code relieve any person of any existing obligation to furnish 
reports to any Government agencies. 

Article VII — Labor Board 

A labor board to consist of two members selected by the Code 
Authority, two members selected by the Labor Advisory Board of 
the National Eecoveiy Administration and a Chairman to be se- 
lected by the Administrator shall be formed to consider and pass 
upon any alleged violation, dispute, or nonobservance of the labor 
provisions of the Code. All decisions shall, if unanimous, be final. 
In the event that no agreement is reached, the matter shall be 
referred to the appropriate Governmental agency. 

Article VIII — Trade Practices 

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

1. False Marking or Branding. — The false marking or branding 
of any product of the industry which has the tendency to mislead or 
deceive customers or prospective customers, whether as to grade, 



390 

quality, quantity, substance, character, nature, origin, size, finish, 
prejiaration, or otherwise. 

2. Misre/presentation or False or Misleading Advertising . — The 
making, causing, or knowingly permitting to be made or published, 
any false, materially inaccurate, or deceptive statement by way of 
advertisement or otherwise having the tendency or capacity to mis- 
lead or deceive customers or prospective customers. 

3. C ommercial Bribery. — No member of the industry shall give, 
permit to be given, or offer to give anything of value for the purpose 
of influencing or rcAvarding the action of any employee, agent, or 
representative of another in relation to the business of the employer 
of such employee, the principal of such agent, or the represented 
party. These 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. 

4. Interference with C ontractual Relations. — Maliciously inducing 
or attempting to induce the breach of an existing contract between 
a competitor and his customer or source of supply, or interference 
with or obstructing the performance of any such contractual 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 
purchasers of special services or privileges not extended to all pur- 
chasers on like terms and conditions. 

6. Giving of Prizes, Premmms., Gifts, or Free Goods. — The offer- 
ing or giving of prizes, premiums, or gifts in connection with the 
sale of products. These provisions shall not be construed to pro- 
hibit free and general distribution of articles commonly used for 
advertising purposes. 

7. Defamation. — The defamation of competitors by falsely imput- 
ing to them dishonorable conduct, inability to perform contracts, 
questionable credit standing, by other false representations, or by 
false disparagement of the grade or quality of their goods. 

8. Threats of Litigation. — The publishing or circularizing of 
threats of suits for infringement of patents or trade marks or of 
any other legal proceedings not in good faith. 

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 bi*ibery, 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 accounting procedure and to the bustness of the 
Industry. Such plan shall specify the factors Avhich shall be in- 
cluded in determining the costs of each 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 paying for such product less than 



391 

the cost thereof to the seller, determined in accordance with the afore- 
said system of cost account, except to meet competition, not insti- 
gated directly or indirectly by the party desiring to meet such com- 
petition, but to meet the price of a competitor whose price does not 
violate the Code. 

11. Published Prices. — Within ten (10) days after the approval 
of this Code each member of the Industry shall publish and file 
with- the Code Authority a price list for all products of the Industry 
sold or offered for sale by him, together with the discounts and 
transportation allowances, if any, allowed therefrom, and fixed 
terms of p)ayment, which price lists shall fully and accurately de- 
scribe each product. Kevised price lists, revised discounts, or terms 
and conditions of sale, may be filed and published from time to time 
thereafter by any member of the Industry ; provided, however, that 
such revision shall be published and filed with the Code Authority 
ten days in advance of the effective date thereof. Copies of all prica 
lists and revised price lists and discounts, with notice of 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 discounts, which 
may become effective upon the date when the revised price lists or 
discounts, first filed, shall go into effect. 

No member of the Industry shall sell or offer for sale, any product 
of the Industry at prices lower than the prices noted in his price 
list or on more favorable terms or conditions of sale than the terms 
or conditions of the sale previously published and filed by such 
member with the Code Authority in accordance with the foregoing 
provisions and in effect at the time of such sale. 

12. False Invoices. — The making of any false invoice with the. 
intent or with the effect of misleading any interested party. 

13. Consignment. — The sale or offering of any products of the 
Industr}^ on consignment except by conditions as prescribed by the 
Code Authority. 

14. fStandard Terms of Cash Discount. — On and after the effective 
date of the terms for cash granted by manufacturers, excluding ex- 
port trade, shall not exceed : 

Trade Sales Accounts — 2% for cash in 10 days — net 60 days 
Bulk Sales Accounts — 1% for cash in 10 days — net 30 days 

except that the discount to trade sales accounts may be extended to 
the 10th day of the month following purchase. It is provided, how- 
ever, that exception may be made in sales to charitable and nontax- 
paying institutions, schools, hospitals, and religious institutions. 

15. Other Practice.^. — Nothing in this Code shall limit the effect of 
any adjudication by the Courts or holding by the Federal Trade 
Commission or 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 



392 

of subsection (b) of Section 10 of the Act, from time to time, to 
cancel or modify any order, approval, license, rule, or regulation 
issued under Title I of said Act and specifically, but without limita- 
tion, to the right of the President to cancel or modify his approval 
of this Code or any conditions imposed by him upon his approval 
thereof. 

2. This Code, except as to provisions required by the Act, may be 
modified on the basis of experience or change in circumstances, such 
modification to be based upon recommendation of the Code Author- 
ity to the President, and such notice and hearing as he shall specify, 
and to become effective upon his approval. 

Article X — 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 XI — 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 XII — Effective Date 

The provisions of this Code shall become effective ten (10) days 
after its approval by the President. 

Appi'ovetl Code No. 224. 
Registry No. 625-02. 

O 



I 



Approved Code No. 225 
CODE OF FAIR COMPETITION 

FOR THE 

SMOKING PIPE MANUFACTURING INDUSTRY 

As Approved on January 23, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

SMOKING PIPE MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Smoking Pipe Manufacturing Industry, 
and hearings having been duly held thereon and the annexed report 
on said Code, containing findings with respect thereto, having been 
made and directed to the President: 

NOW, THEREFORE, on behalf of the President oi the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30. 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act: and do hereby order that said Code of Fair 
Competition bo and it is hereby approved. 

Hugh S. Johnson, 
Administrator far Industrial Recovery. 

Approval Recommended : 
Geo. L. Berry, 

Division Ad/mini strator. 

Washington, D.C, 

January 2S, 193 Jf.. 

28294' 29G-42 34 (393) 



The President, 

The White House. 

Sir: A Public Hearing on the Code of Fair Competition for the 
Smoking Pipe Manufacturing Industry, submitted by the Associa- 
tion of Smoking Pipe Manufacturers of the United States located 
in New York, was conducted in Washington on the 4th of October 
1933 in accordance with the provisions of the National Industrial 
Kecovery Administration. The association claims to represent 100 
percent of the Industry. 

The Code provides a maximum of forty hours per week. Office 
employees are permitted a maximum of 421^ hours per week. Per- 
sons employed in shipping and packing rooms, engineers and firemen 
are permitted to work 48 hours per week except during the months 
of June, July, August, and September, when engineers and fireman 
shall not be employed for more than 40 hours per week. 

Emploj'ees in a managerial or executive capacity, receiving $35.00 
or more per week, emergency repair crews, outside salesmen, and 
highly skilled workers when engaged in work on continuous pro- 
cesses where the restriction of their hours of labor would reduce 
production, are excepted entirely from the hours of labor, provided 
time and one half is paid emergency repair crews and highly skilled 
workers for all hours Avorked in excess of forty per week. 

Census reports for 1929 showed prevailing hours of labor to be 
between 45 and 48. The industry states that 54 hours has been the 
average work week during the busy seasons, with 48 hours the mini- 
mum at any period. Assuming 48 hours as the average work week 
prior to the signing of the Reemployment Agreement, it is estimated 
that the forty-hour week proposed in the Code would give employ- 
ment to an additional 475 persons. 

The industry states, and Census figures substantiate their claim 
that there is no unemployment in the industry at the present time, 
there being more workers employed now than in 1929. There has 
been a gradual decline in employment since 1923, which was the 
peak 3^ear for the industry, at which time 2,402 workers were em- 
ployed in the industry. This decline has been consistent until 1933 
when a gain is shown, due undoubtedly to the change in consumer 
demand which has recentlj^ been evidenced. 

This Code provides a minimum rate of 35 cents per hour or $14.00 
per week, and this is established as a minimum rate of pay, regard- 
less of whether an employee is cornpensated on time rate, piecework 
performance, or other basis. The (Jode also provides that employers 
shall endeavor to increase the pay of employees receiving wages above 
the minimum. 

Information on earnings of individual workers is very meager. 
However, average annual wages can be computed from Census data. 
The average annual wage in 1929 was $1,167.00 as compared with an 
average of $1,315.00 for all industry combined. In 1931 the average 
annual wage declined ten percent to $1,050.00 in this industry, as 

(394) 



395 

compared with a 16 percent decline to $1,102.00 for all industry 
combined. 

The Avage bill in this industry claims a large share of the total 
value of products. In 1929 the rates of wages paid to value of 
products Avere 35.3 percent and in 1931 were 32 percent. Wages for 
all manufacturing industries combined were 16 percent of the total 
value of product in 1929, and 1T.4 percent in 1931. 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter; 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industr3^ 

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Actj including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant group 
is a trade association truly representative of the aforesaid Industry; 
and that said association imposes no inequitable restrictions on 
admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 
not been deprived of the right to be heard prior to approval of said 
Code. 

This Industry has cooperated in a most satisfactory manner with 
the Administration in the preparation of this Code. From the evi- 
dence adduced during the hearing and from recommendations and 
reports of the various advisory boards it is believed that this Code 
in its present form as approved represents an effective, practical, and 
equitable solution for this industry and for these reasons this Code 
has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dm Inistrator. 
January 23, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

SMOKING PIPE MANUFACTURING INDUSTRY 

Article 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 Smoking Pipe Manufacturing Industry and its f)rovisions 
shall be the standard of fair competition for such Industry and shall 
be binding upon every member thereof. 

Article II — Definitions 

1. The term " Smoking Pipe Manufacturing Industry " shall mean 
the manufacturing of any smoking pipe, cigar holder, and cigarette 
holder, produced from imported or domestic woods, or other ma- 
terials. The manufacture of corn cob pipes is specifically excluded 
from 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 the method of payment of such 
compensation. 

3. The term " employer " as used herein, includes anyone by whom 
any 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. 

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 

1. No employee shall work or be permitted to work in excess of 
forty (40) hours in any one week or eight (8) hours in any twenty- 
four (24) hour period except such employees specifically excluded 
from the provisions hereof by Sections 2 and 3 post. 

2. Office employees shall not be employed for more than forty-two 
and one half (42^^) hours per week and employees engaged in ship- 
ping and in packing rooms, together with engineers and firemen, 
shall not be employed for more than forty-eight (48) hours per week 
except that during the months of June, July, August, and September 
engineers and firemen shall not be employed for more than forty 
(40) hours per week. 

(396) 



397 

3. Employees in a managerial or executive capacity, who now re- 
ceive thirty-five dollars ($35.00) per week or more, outride salesmen, 
emergency repair creAvs, and highly skilled workers when engaged 
in work on continuous processes where the restriction of their hours 
of labor would reduce production, are hereby specifically exempted 
from the maximum hours set forth in paragraphs 1 and 2 ante; 
provided, however, that highly skilled workers and emergency repair 
crews shall be paid at least time and one half for all hours worked 
in excess of forty (40) hours per week. 

4. Watchmen may be employed in pairs and shall not work more 
than 36 and 48 hours on alternate weeks, or an average of 42 hours 
per week. 

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

Article IV — Wages 

1. No employee shall be paid at less than the rate of thirty-five 
cents (350) per hour or fourteen dollars ($14.00) per Aveek except 
as herein otherwise provided. 

(a) Employees engaged in wrapping and branding pipes and 
placing them on display cards may oe paid at not less than the rate 
of thirty cents (30^) per hour, provided that no such employee shall 
be engaged in any other productive or mechanical work unless paid 
at a rate not less than the minimum wage above provided. Such 
employees shall in no case exceed fifteen percent (15%) of the total 
number of employees of any, one employer. 

(b) Apprentices, having no previous employment in this industry, 
shall, for a period not to exceed six weeks, be paid not less than 80 
percent of the minimum wage above provided. Such apprentices 
shall in no case exceed five percent of the total number of employees 
of anj' one employer. 

2. This Article establishes a minimum rate of pay regardless of 
whether an employee is compensated on a time-rate, piece-work per- 
formance, or other basis. 

3. It is the policy of the members of this industry to refrain from 
reducing the compensation for employment which compensation 
was, prior to June 16. 1933, in excess of the minimum wage herein 
set forth, notwithstanding that the hours of work in such employ- 
ment may be reduced; and all members of this industry shall en- 
deavor 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. 

Article V — General Labor Provisions 

1. No person under 16 years of age shall be employed in the indus- 
try, nor anyone under 18 years of age at operations or occupations 
hazardous in nature or detrimental to health. The Code Authority 
shall submit to the Administrator before January 1, 1934, a list of 
such occupations. In any State an employer shall be deemed to 
have complied with this provision if he shall have on file a certificate 



398 

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 sell-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, min- 
imum rates of pay, and other conditions of employment, approved 
or prescribed by the President. 

5. Within each State this Code shall not supersede any laws of 
such State imposing more stringent requirements on employers reg- 
ulating the age of employees, wages, hours of work, and general 
working conditions than under this Code. 

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees so as to defeat the purposes of the 
Act. 

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

Article VI — Administr-vtion 

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 AuthoHty. — (a) The 
Code Authority shall consist of eight individuals, or such other num- 
ber as may be approved from time to time by the Administrator, 
to be selected by a fair method of selection from and by the industry 
and appointed by the Administrator. In addition to these members 
the Administrator shall appoint a chairman, who is to vote only in 
the event of a tie, and, in his discretion, he may appoint not more 
than three additional members without vote to serve for such period 
of time as he may designate. 

(b) The Association of Smoking Pipe Manufacturers of the United 
States shall be the agencj'^ under the Code Authority, for adminis- 
tering the provisions of this Code, subject to the approval of the 
Administrator. This Association or any other 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. (2) Submit to the Administrator true 
copies of its articles of association, bylaws, regulations, together with 
any amendment or amendments when made thereto and such other 
information as to membership, organization, and activities as the 
Administrator may deem necessary and proper to effectuate the 
purjDoses of the National Industrial Recovery Act. 



399 

(c) In order that the Code Authority shaJl 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 and does not in other respects 
comply with the provisions of the Act, may take such action as may 
be proper in the premises. 

(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 reasonaole share of the expenses of its adminstration. Such 
reasonable share of the expenses of administration shall be deter- 
mined by the Code Authority, subject to review b}^ the Administrator, 
on the basis of volume of business and/or such other factors as may 
be deemed equitable. 

Sec. 2. 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 
Authorit3^ 

(a) To insure the execution of the provisions of this Code and 
provide for the compliance of the industry with the provisions of 
the Act. 

(b) To adopt bylaws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To obtain from members of the industry such information 
and reports as are required for the administration of the Code and 
to provide for submission by members of such information and 
reports as the Administrator 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 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 niake 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. 

(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 Avith tlie Administrator in regulating the use 
of any N.R.A. insignia solel}^ by those members of the industry who 
have assented to, and are complying with, this Code. 



400 

(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 tho 
Administrator measures for industrial planning, including stabiliza- 
tion of employment. 

Article VII — Trade Practices 

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

1. The selling or offering for sale of any product of the industry 
below cost, as determined by a standard cost-accounting system to 
be approved by the Administrator. 

2. The selling of dropped lines, surplus, and rejected merchandise 
and distress merchandise below cost except as approved by the Code 
Authority. 

(a) Dropped lines are defined as those lines of merchandise which 
a particular manufacturer intends to discontinue but in no event shall 
any line be considered a dropped line unless it has been offered to the 
public for at least a period of six months. 

3. False Marking or Bratiding. — 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. 

4. 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 the credit terms, values, 
policies, or services of any member of the industry, or otherwise, 
having the tendency or capacity to mislead or deceive customers or 
prospective customers, 

5. Commercial Bribery. — Directly or indirectly to give or permit 
to be given, or offer to give, money or anything of value to agents, 
employees, or representatives of customers or prospective customers, 
or to agents, employees, or representatives of competitors' customers 
or prospective customers, without the knowledge of their employers 
or principals, as an inducement to influence their employers or prin- 
cipals to purchase or contract to purchase from the makers of such 
gift or offer, or to influence such employers or principals to refrain 
from dealing or contracting to deal with competitors. 

6. Interference with Contractual Relations. — Maliciously inducing 
or attempting to induce the breach of an existing oral or written 
contract between a competitor and his customer or source of supply, 
or interfering with or obstructing the performance of any such con- 
tractual duties or services. 

7. Secret Rebates. — The secret payment or allowance of rebates, 
refunds, commissions, credits, or unearned discounts, whether in 
the form of money or otherwise, or the secret extension to certain 
purchasers of special services or privileges not extended to all pur- 
chasers on like terms and conditions. 



401 

8. Giving of Prizei^^ 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. 

9. Defamation. — The defamation of comi)etitors hy falsely imput- 
ing to them dishonorable conduct, inability to perform contracts, 
questionable credit standing, or by other false representations or by 
the false disparagement of the grade or quality of their goods. 

10. Threats of Litigation. — The publishing or circularizing of 
threats or suits for infringement of patents or trade marks or of 
any other legal proceedings not in good faith, with the tendency 
or effect of harassing competitors or intimidating their customers. 

11. Esinonage 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. 

12. Consigned Merclmndise. — No merchandise shall be sold on 
consignment. 

13. Trade Guarantees. — Pipes priced for sale, at less than one 
dollar ($1.00), shall not be sold upon any guarantee of replacement 
in the event that the same prove unsatisfactory; and no manufacturer 
shall accept the return of a used pipe or replace the same, except 
for defects of manufacture, such adjustments to be made only 
between the manufacturer and the ultimate consumer. 

14. Other Unfair Practices. — Nothing in this Code shall limit the 
effect of an}^ adjudication by the Courts or holding hy 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 the Code. 

Article VIII — Modification 

1. This Code and all the provisions thereof are expressl^^ 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 E.ecover}'^ 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 modif}^ his approval of this Code or any 
conditions imposed by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 
modified or amended on the basis of experience or changes in cir- 
cumstances, such modification or amendments to be based upon ap- 
plication to the Administrator and such notice and hearing as ha 
shall specify, and to become effective on approval of the Administra- 
tor, unless otherwise provided. 

Article IX — ^Monopolies 

1. No provision of this Code sliall be so applied as to permit 
monopolies or monopolistic ])ractices, or to eliminate, oppress, or 
discriminate against small enterprises. 



402 
Article X — Price Increases 

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

Article XT--EFrECTi\T!: Date 

This Code shall become effective on the tenth day after its approval 
by the President. 

Approved Code No. 225. 
Registry No. 1651^2. 

O 



Approved Code No. 226 
CODE OF FAIR COMPETITION 

FOR THE 

LIGHT SEWING INDUSTRY EXCEPT GARMENTS 
As Approved on January 23, 1934 



ORDER 
APPROVING CODE OF FAIR COMPETITION 

FOR THE 

LIGHT SEWING INDUSTRY EXCEPT GARMENTS 

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 approval of a Code of 
Fair Competition for the Light Sewing Industry Except Garments, 
and hearings having been duly held thereon and the annexed report 
on said Code, containing findings with respect thereto, having been 
made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 

A. D. Whiteside, 

D i vision A d7)vinistrator. 

Washington, D.C, 

January 23, 193Jf. 

35368°— —313-113 34 (403) 



The President, 

The White Hoiise. 

Sir: This is a report on the Hearing on the Code of Fair Com- 
petition for the Light Serving Industry Except Garments, held in 
accordance with the provisions of the National Industrial Recovery 
Act, in the Chinese Room of the Mayflower Hotel, on November 28, 
1933. The Code which is attached was presented by duly qualified 
and authorized representatives of the Industry, complying with stat- 
utory requirements, said to represent 75 percent or more in volume of 
each division of the Industry. 

In accordance v,-ith the customary procedure every person who had 
filed a request for an appearance was freely heard in public, and all 
statutory and regulatory requirements were complied with. 

This Code is a combination of a number of separate Codes origi- 
nally submitted to the Administration. These separate Codes would 
have placed several divisions of this Industry under completely sepa- 
rate documents. Should these Codes have been put through sepa- 
rately, manufactiu^ers of more than one of the articles now included 
within this Code would have been obliged to operate under several 
Codes. Furthermore, a large number of small sewn articles not 
listed specifically in any proposed Code might not have been brought 
under the jurisdiction of the Act. 

The tendency of Industry Groups and Associations was to submit 
Codes for their principal items of manufacture, but to overlook or 
fail to include the many small items made by them. It would be 
almost impossible to enumerate these many small items in separate 
Codes. Had they been included in the definition of the larger sepa- 
rate sewing codes other than garments, manufacturers would have 
found themselves operating under a multiplicity of such codes. Ac- 
cordingly, the Code submitted herewith is designed to coordinate all 
sewn articles other than garments that have not or are not being 
granted separate Codes. 

THE INDUSTRY 

The Industry as represented by the seven divisions now specifically 
included in the Code comprises about 232 concerns, having an invest- 
ment in 1933 of $16,323,400. In 1928 the Industry provided employ- 
ment for 10,821 employees. This figure has declined to about 8,404 
workers during 1933. The aggregate annual sales have fallen from 
$42,553,270 in 1928 to $30,534,100 in 1932. 

PROVISIONS OF THE CODE 

The Code provides for a minimum wage of 321/2 cents per hour. 
Employees in the Fabric Auto Equipment Division, however, may 
be paid at tlie rate of 30 cents per hoiu' in the South. The weekly 

(404) 



405 

compensation for employment in excess of the minimum wages 
provided in this Code shall not be reduced although the hours of 
work have been reduced and provision is made for increasing the 
pay for such employment by an equitable readjustment of all pay 
schedules. 

Office employees are permitted to work 48 hours in any one week 
provided they do not work more than 40 hours per week averaged 
over a period of two months. Hours of work for factory employees 
are limited to 40 hours in any one w^eek and 8 hours in any 24-hour 
period except that these employees are permitted to work 48 hours 
per week for not more than six weeks in any six months' period pro- 
vided that the number of hours shall not be in excess of 40 hours per 
week averaged over a six months' period, and provided further that 
all hours worked in excess of 40 hours in any one week shall be paid 
for at not less than one and one third (IV^) times the normal rate. 
Employees in a supervisory capacity receiving $35 per week or more, 
watchmen and outside salesmen are not limited as to hours. Em- 
ployees on emergency repair work are excepted from the maximum 
hour provisions but are to be paid time and one third for overtime 
work. Maintenance employees are permitted to Avork 44 hours per 
week. Operations are limited to one shift of 40 hours in the Mattress 
Cover Division and two shifts of 40 hours each per week in all the 
other divisions. 

Hours of work have been reduced from 47 to 40 by the applica- 
tion of this Code. According to the Division of Eesearch and 
Planning, the actual number of hours that this Industry will operate 
under the provisions of the Code will be approximately 37 hours per 
week, so that the effect will be to reduce the hours of Avork betAveen 
15 and 20 percent and increase employment in the same proportion. 

AA-erage Avages in this Industry Avill be increased from $13.00 to 
approximately $15.00 per week. This represents a substantial in- 
crease since the minimum wages must be raised considerably to 
account for this change in aA-erage Avages. 

Kepresentation on the Code Authority is provided for all members 
of the Industry. The Code sets up Divisional Committees to aclmin- 
ister the supplemental fair trade practices for the separate divisions 
of this Industry. 

There are no highly restrictive provisions in the Code itself. 
Provision is made for prohibiting the sale of merchandise beloAv 
cost in certain divisions Avhen and if a uniform and standard system 
of cost accounting is approved by the Administrator. No such 
provision, however, will become effective without further approval 
of the Administrator. 

FINDINGS 

I find that: 

(a) Said Code is avcU designed to promote the policies and 
purposes of Title I of the National Industrial RecoA'ery Act, includ- 
ing removal of obstructions to the free floAV of interstate and foreign 
commerce Avhich tend to diminish the amount thereof and Avill pro- 
vide for the general Avelfare by promoting the organization of indus- 
try for the purpose of coopei-ative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 



406 

ment under adequate governmental sanction and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be 
temporarily required), by increasing the consumption of industrial 
and agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified b}^ me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof; and that the applicant 
associations are industrial associations truly representative of the 
aforesaid Industry; and that said associations impose no inequitable 
restrictions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and v/ill not operate to discriminate against them. 

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said 
Code. 

For these reasons, this Code of Fair Competition for the Light 
Sewing Industry Except Garments has been approved. 
Respectfully, 

Hugh S. Joiikson, 

A clvvhi istrator. 
January 23, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

LIGHT SEWING INDUSTRY EXCEPT GARMENTS 

Article I — Purposes 

To effectuate the policies of Title I of the Nation.al Industrial 
Recovery Act, the following provisions are established as a Code 
of Fair Competition for the Light Sewing Industry Except Gar- 
ments, and shall be the standard of fair competition for such 
Industry and shall be binding upon every member thereof. 

Article II — Definitions 

1. The term " Light Sewing Industry Except Garments "' or 
" Industry " as used herein includes the manufacture and original 
sale of all sewn textile articles and/or table pads and/or table mats 
except wearing apparel and excepting such articles as are governed 
by the provisions of other codes of fiiir competition, and shall 
include such related branches or subdivisions as may from time to 
time be included under the provisions of this code by the President 
of the LTnited States after, such notice and hearing as he may 
prescribe. 

2. The terms '' table pad " and " table mat " as used herein are 
defined to mean any mat manufactured for use in protecting the sur- 
face of tables against heat, liquids, or marring, composed of a 
water-proof surface and an insulating element such as asbestos, cork, 
pasteboard, felt paper, or corrugated paper. 

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, and includes anyone who fur- 
nishes or contracts for labor as a part of a larger or further operation 
in the process of manufacturing any of the products of this Industry. 

4. The term " employee " as used herein includes any and all per- 
sons engaged in the Industry however compensated, except a member 
of the Industry. 

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

G. The term " productive machinery " as used herein and as applied 
to the divisions of this Industry is defined : 

(a) For the Quilting Division : Quilting machines. 

(b) For the Comfortable Division: Hand-guided sewing machines 
and hand-needle work equipment, and automatic quilting machines. 

(407) 



408 

(c) For the Covered Carpet Padding Division: Carpet lining, 
sewing and quilting machines, garnetts, lappers, pickers, stitching 
and bending machines, and cloth-cutting machines. 

7. The term "Act " and '^Administrator " as used herein mean 
respectively Title I of the National Industrial Kecovery Act and the 
Administrator for Industrial Recovery. 

Article III — Hours 

1. No office employee shall work or be permitted to work in excess 
of forty (40) hours per week, averaged over a period of two months, 
or forty-eight (48) hours in any one Aveek or eight (8) hours in any 
twenty-four (24) hour period. 

2. No other employee, except as hereinafter provided, shall work 
or be permitted to work in excess of forty (40) hours in any one week 
or eight (8) hours in any twenty-four (24) hour period, except that 
such "employees may be permitted to work forty-eight (48) hours per 
week for not more than six (6) weeks in any six-month period, pro- 
vided that the number of hours shall not be in excess of forty (40) 
hours per week averaged over a six months' period. "Work done in 
excess of forty (40) hours in any one Aveek, however, shall be paid 
for at not less than one and one third (1%) times the normal rate. 

3. The maximum hours fixed in the foregoing sections shall not 
apply to : 

(a) Executives and employees in a managerial or supervisor}' ca- 
l^acity who receive thirty-five dollars ($35,00) or more per week, 
watchmen, and outside salesmen. 

(b) Repair-shop crews, engineers, electricians, and firemen, who 
shall be permitted to work not in excess of forty-four (44) hours per 
Aveek. 

(c) Employees on emergency maintenance or emergency repair 
work involving breakdowns or protection of life or property, but in 
any such special case overtime shall be paid for at not less than one 
and one third (1^^) times the normal rate. 

At the end of each calendar month every employer shall report to 
the Code Authority hereinafter provided for, in such detail as may 
be required, the number of man-hours worked in that month in cases 
of emergenc}^ and the ratio which said emergency man-hours bear to 
the total number of man-hours of labor during said month. 

4. Members of the Industry shall not operate for more than two 
(2) shifts of forty (40) hours each per week, except as provided 
hereafter in supplemental provisions. 

5. No em]Dloyee shall work or be permitted to work for a total 
number of hours in excess of the number of hours prescribed for 
each week and day, whether employed by one or more employers. 

Article IV — Wages 

1. No employee shall be paid at less than the rate of 321/^ cents 
per hour except that employees in the Fabric Auto Equipment Divi- 
sion may be paid at the rate of not less than 30 cents per hour in the 
Southern States, which shall include only the States of Virginia, 
North Caroliuii. South Carolina, Georgia, Florida, Alabama, Mis- 



409 

sissippi, Tennessee, Kentucky, Louisiana, Arkansas, O