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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 


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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  provisions  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,    Oklahoma, 
Texas,  and  the  District  of  Cohimbia. 

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  rate  of  compensation  for  employment  now  in  excess 
of  the  minimum  wages  herein  provided  shall  not  be  reduced  (not- 
withstanding that  the  hours  worked  in  such  employment  may  be 
hereby  reduced),  and  the  pay  for  such  employment  shall  be 
increased  by  an  equitable  readjustment  of  all  pay  schedules. 

4.  Female  employees  performing  substantially  the  same  work  as 
male  emjoloj^ees  shall  receive  the  same  rates  of  pay  as  male  employees. 

5.  A  person  Avho-e  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  emplo3''ed  by  him. 

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. 

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

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

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

5.  Within  each  State  members  of  the  Industry  shall  comply  with 
any  laws  of  such  State  imposing  more  stringent  requirements  on 
employers  regulating  the  age  of  employees,  wages,  hours  of  work, 
or  health,  fire,  or  general  working  conditions  than  under  this  Code. 

G.  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  accessible  to 
employees  full  copies  of  this  Code. 

8.  Until  adoption  of  further  provisions  of  this  Code  that  may 
prove  necessary  in  order  to  prevent  any  improper  speeding  up  of  the 

35368° 313-113 34 2 


410 

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. 

9.  No  employer  shall  have  work  done  or  labor  performed  on  any 
article  produced  in  this  Industry  in  the  home  of  a  worker,  except 
hand  work  only  as  follows : 

(1)  Candlewick  bedspreads. 

(2)  Hand  quilted  textiles  for  a  period  of  six  months,  but  there- 
after only  if  specifically  exempted  by  the  Administrator. 

Article  VI — Administration 

There  shall  forthwith  be  constituted  a  Code  Authority. 
1.  Organization  and  constitution  of  Code  Authority : 

(a)  The  membership  of  the  Code  Authority  shall  include  seven 
(7)  members  (which  number  may  be  increased  to  ten  (10)  members 
if  and  when  necessity  arises  therefor  by  further  inclusion  of  addi- 
tional Divisions  within  this  Code)  to  be  selected  in  a  manner 
aj^proved  by  the  Administrator  from  the  following  Divisions : 

Quilting,  1  Member. 

Mattress  Covers,  1  Member, 

Comfortables,  1  Member. 

Fabric  Auto  Equipment,  2  Members. 

Other  Members  of  the  Industry,  1  Member. 
In  additon  to  the  membership  as  above  provided,  there  may  be 
three  (3)  additional  members  without  vote  appointed  by  the  Admin- 
istrator, one  of  whom  may  be  appointed  on  the  nomination  of  the 
Labor  Advisory  Board  of  the  NRA. 

(b)  Divisional  Committees  consisting  of  not  more  than  seven  (7) 
members  each  shall  be  selected  by  each  of  the  following  divisions  of 
this  Industry  in  a  manner  approved  or  prescribed  by  the  Adminis- 
trator: Comfortable  Division,  Covered  Carpet  Padding  Division, 
Fabric  Auto  Equipment  Division,  Mattress  Cover  Division,  Table 
Pad  Division,  and  Quilting  Division.  New  divisions  of  the  Industry 
may  be  established  on  the  recommendation  of  the  Code  Authority 
with  the  approval  of  the  Administrator.  The  Administrator  may 
appoint  up  to  three  members,  without  vote,  to  each  of  the  Divisional 
Cfommittees. 

(c)  In  order  that  the  Code  Authority  and  the  Divisional  Com- 
mittees shall  at  all  times  be  truly  representative  of  the  Industry  and 
in  other  respects  comply  with  the  j^rovisions  of  the  Act,  the  Adminis- 
trator may  provide  such  hearings  as  he  may  deem  proper;  and 
thereafter  if  he  shall  find  that  the  Code  Authority  or  the  Divisional 
Committees  are  not  truly  representative  or  do  not  in  other  respects 
comply  with  the  pro^dsions  of  the  Act,  may  require  an  appropriate 
modification  in  the  method  of  selection  of  the  Code  Authority  or 
of  the  Divisional  Committees. 

(d)  Each  trade  or  industrial  association  directly  or  indirectly 
participating  in  the  selection  or  activities  of  the  Code  Authority 
or  a  Divisional  Committee  shall  (1)  impose  no  inequitable  restric- 


411 

tions  on  membership,  and  (2)  submit  to  the  Administrator  true 
copies  of  its  articles  of  association,  bylaws,  regulations,  and  any 
amendments  when  made  thereto,  together  with  such  other  informa- 
tion as  to  membership,  organization,  and  activities  as  the  Adminis- 
trator may  deem  necessary  to  effectuate  the  purposes  of  the  Act. 
i2.  The  Code  Authority  and  the  Divisional  Committees  shall  have 
the  following  duties  and  powers: 

(a)  The  Code  Authority  shall  cooperate  with  the  Administrator 
in  the  administration  of  the  provisions  of  this  Code.  The  Divisional 
Committees,  subject  to  the  general  approval  of  the  Code  Authority, 
shall  cooperate  with  the  Administrator  in  the  administration  of 
(he  supplemental  provisions  applicable  to  their  respective  Divisions. 

(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.  The  Divisional  Committees  may  present 
to  the  Administrator  recommendations  concerning  their  respective 
supplemental  provisions.  Such  recommendations,  when  approved 
by  the  Administrator,  after  notice  to  and  after  opportunity  given 
to  the  Divisional  Committees  of  all  Divisions  affected  to  be  heard, 
shall  have  the  same  force  and  effect  as  any  of  the  provisions  of  this 
Code.  Such  recommendations  may  include  recommendations  for 
use  by  all  members  of  the  Industry  in  their  respective  Divisions, 
of  an  N.R.A.  label  and  for  the  establishment  of  the  necessary 
machinery  to  manufacture  and  issue  the  same. 

(c)  The  Code  Authority  shall  collect  statistics  covering  number 
of  employees,  wage  rates,  employee  earnings,  hours  of  work,  and 
such  other  data  as  may  be  prescribed  or  approved  by  the  Adminis- 
trator and  may  designate  the  Divisional  Committees  as  the  agencies 
to  collect  such  statistics. 

(d)  Members  of  the  Industry  shall  be  entitled  to  share  in  the 
selection  of  the  members  of  the  Code  Authority  and  of  their  ap- 
propriate Divisional  Committees  by  assenting  to  the  requirements 
of  this  Code  and  of  any  supplemental  provisions  thereto,  and  by  pay- 
ing their  reasonable  share  of  the  expenses  of  the  administration  of 
this  Code  and  of  such  su])plemental  provisions. 

The  reasonable  share  of  the  expenses  of  the  Code  Authority  shall 
be  determined  by  the  Code  Authority  on  the  basis  of  dollar  volume 
of  business,  subject  to  review  by  the  Administrator.  Such  expenses 
shall  be  collected  by  the  appropriate  Divisional  Committee  from 
members  of  the  Industry  who  are  members  of  the  above-mentioned 
Divisions  and  by  the  Code  Authority  from  members  of  the  Industry 
not  members  of  such  Divisions. 

The  reasonable  share  of  the  expenses  of  the  Divisional  Connnittees 
shall  be  determined  by  the  appropriate  Divisional  Conunittee  on 
the  basis  of  dollar  volume  of  business,  subject  to  review  by  the  Ad- 
ministrator. Such  expenses  shall  be  collected  by  the  appropriate 
Divisional  Committee. 

(e)  Nothing  contained  in  this  Code  shall  constitute  the  members 
of  the  Code  Authority  or  of  the  Divisional  Connnittees  partners  for 
any  purpose,  nor  shall  any  member  of  the  Code  Authority  or  of  the 
Divisional  Committees  be  liable  in  any  manner  to  any  one  for  any 
act  of  any  other  member,  officer,  agent,  or  employee  of  the  Code 


412 

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

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

4.  If  the  Administrator  shall  determine  that  any  action  of  a 
Code  Authority,  Divisional  Connnitte,  or  any  agency  thereof  is 
unfair  or  unjust  or  contrary  to  public  interest,  the  Administrator 
ma\-  require  that  such  action  be  suspended  for  a  period  of  not  to 
exceed  thirty  days  to  afford  an  opportunity  for  investigation  of 
the  merits  of  such  action,  and  further  consideration  by  such  Code 
Authority.  Divisional  Committee,  or  agency,  pending  final  action 
which  shall  be  taken  only  upon  approval  by  the  Administrator. 

Article  VII — Trade  Practices 

1.  The  violation  of  any  provision  of  this  Code  or  of  an}'  supple- 
mental provisions  thereto  shall  constitute  an  unfair  trade  practice. 

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  Act,  from  time  to  time 
to  cancel  or  modifj'  any  order,  approval,  license,  rule,  or  regula- 
tion issued  under  said  Act. 

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  Administrator, 
and  such  notice  and  hearing  as  he  shall  specify,  and  to  become 
effective  on  aproval  of  the  Administrator. 

Article  IX — Monoi(h.iks 

Xo  provision  of  this  Code  shall  be  so  applied  as  to  permit  mo- 
nopolies or  monopolis-tic  practices,  or  to  eliminate,  oppress,  or  dis- 
criminate against  small  enterprises. 

Article  X — Effective  Date 

This  Code  shall  become  effective  on  the  tenth  da}^  after  approval. 

Approved  Code  No.  226. 
Registry  No.  200-50. 


COMFORTABLE  DIVISION 

Division  No.  1 

I — Definition 

The  term  '*  Comfortable  Division "  as  used  herein  includes  all 
members  of  the  Industry  producing  comfortables  and  comforts. 

II — Trade  Practices 

1.  No  member  of  the  Division  shall  sell  or  exchange  or  offer  to 
sell  any  product  of  the  Division  below  his  own  cost,  when  and  if 
same  may  be  determined  as  herein  provided,  except  to  meet  the  com- 
petition of  any  member  of  the  Division  whose  price  for  a  product 
of  equivalent  quality  is  not  less  than  his  own  cost.  When  a  uniform 
and  standard  system  of  cost  accounting,  prescribed  by  the  Divisional 
Committee,  shall  be  approved  by  the  Administrator,  every  member 
of  the  Division  shall  use  a  system  of  accounting  which  conforms 
to  the  principles  of  such  system.  The  Divisional  Committee  shall, 
subject  to  the  approval  of  the  Administrator,  determine  the  cost 
factors  to  be  included  in  such  system. 

The  Divisional  Committee  shall  have  the  power  to  suspend  the 
operation  of  the  provisions  of  this  Section  and  to  make  provision 
for  the  disposal  of  discontinued  lines,  seconds,  and  other  sales  to  be 
excepted  from  the  application  of  this  Section. 

2.  INIembers  of  the  Division  shall  file  with  the  Divisional  Com- 
mittee a  schedule  of  prices  and  terms  of  sale  for  the  products  of  the 
Division,  within  thirty  (30)  days  after  the  effective  date  of  this 
Code.  Such  price  lists  may  be  revised  only  upon  five  (5)  days'  notice 
by  registered  mail  to  the  Divisional  Committee.  The  Divisional 
Committee  shall  immediately  send  copies  of  all  price  lists  filed  to  all 
members  of  the  Division. 

]Members  of  the  Division  shall  not  sell  their  products  at  lower 
prices  or  on  more  liberal  terms  than  set  forth  in  their  own  price  list. 
When  any  member  of  the  Division  revises  his  price  list,  any  other 
member  of  the  Division  may  revise  his  price  list  accordingly,  to  be- 
come effective  on  the  same  date  as  the  revised  price  list  first  filed. 

The  following  may  be  ,sold  without  filing  revised  price  lists  there- 
for, but  shall  be  reported  to  the  Divisional  Committee  immediately 
after  sale:  dropped  lines  and  seconds. 

The  Divisional  Committe  shall  have  the  power  to  suspend  the 
operation  of  the  provisions  of  this  Section. 

3.  The  following  Unfair  Trade  Practices  are  prohibited : 

(a)  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 

(413) 


4U 

of  such  agent  or  the  represented  party,  v^'ithoiit  the  knowledge  of 
such  employer,  principal,  or  party.  This  provision  shall  not  be  con- 
strued to  prohibit  fi"ee  and  general  distribution,  of  articles  commonly 
used  for  advertising  except  so  far  as  such  articles  are  actuall}^  used 
for  commercial  bribery  a,s  liercinabove  defined. 

(b)  Using  or  substituting  any  material  inferior  in  quality  to  that 
specified  by  the  purchaser  of  any  product. 

(c)  Maliciously  indsicing  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. 

(d)  The  secret  payment  or  allowance  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. 

(e)  The  branding  or  marking  of  any  product  of  the  Division  in 
any  manner  which  tends  to  deceive  or  mislead  purchasers,  with 
respect  to  the  grade,  quality,  quantity,  origin,  size,  material  content, 
or  jDreparation  of  such  product. 

(f)  Selling  on  more  liberal  terms  than  3/10  E.O.M. 

(g)  The  failure  to  plainly  mark  seconds. 

(h)  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  Division,  or  the  credit  terms, 
values,  policies,  or  services  of  any  member  of  the  Division,  or  other- 
Avise,  having  the  tendency  or  capacity  to  mislead  or  deceive  cus- 
tomers or  prospective  customers. 

(i)  Making  sales  upon  any  other  terms  than  expressly  set  forth 
in  the  invoice  jDertaining  to  such  sales. 

4.  The  selling  or  offering  for  sale  of  any  product  of  the  Division 
on  memorandum  or  on  consignment  or  on  conditional  sale  shall  be  an 
unfair  trade  practice. 

The  Divisional  Committee  shall  have  the  power  to  suspend  the 
operation  of  the  iDrovisions  of  this  Section. 


MATTRESS  COVER  DIVISION 

Division  No.  2 

I — Definition 

The  term  "  Mattress  Cover  Division  ""  as  used  herein  inchules  all 
members  of  the  Industry  producing  mattress  covers. 

II — Trade  Practices 

1.  ISTo  member  of  the  Division  shall  sell  or  exchange  or  offer  to 
sell  any  product  of  the  Division  below  his  OAvn  cost,  when  and  if  same 
may  be  determined  as  herein  provided,  except  to  meet  the  compe- 
tition of  any  member  of  the  Division  whose  price  for  a  product  of 
equivalent  quality  is  not  less  than  his  own  cost.  When  a  uniform 
and  standard  system  of  cost  accounting,  prescribed  by  the  Divisional 
Committee,  shall  be  approved  by  the  Administrator,  every  member 
of  the  Division  shall  use  a  system  of  accounting  which  conforms  to 
the  principles  of  such  system.  The  Divisional  Committee  shall,  sub- 
ject to  the  approval  of  the  Administrator,  determine  the  cost  factors 
to  be  included  in  such  system. 

The  Divisional  Committee  shall  have  the  power  to  suspend  the 
operation  of  the  provisions  of  this  Section  and  to  make  provision 
for  the  disposal  of  discontinued  lines,  seconds,  and  other  sales  to  be 
excepted  from  the  application  of  this  Section. 

2.  Members  of  the  Division  shall  file  with  the  Divisional  Com- 
mittee a  schedule  of  prices  and  terms  of  sale  for  the  products  of  the 
Division,  within  thirty  (30)  days  after  the  effective  date  of  this 
Code.  Such  price  lists  may  be  revised  only  upon  five  (5)  days' 
notice  by  registered  mail  to  the  Divisional  Committee.  The  Divi- 
sional Committee  shall  immediately  send  copies  of  all  price  lists  filed 
to  all  members  of  the  Division. 

Members  of  the  Division  shall  not  sell  their  products  at  lower 
prices  or  on  more  liberal  terms  than  set  forth  in  their  own  price  list. 
When  any  member  of  the  Division  revises  his  price  list,  any  other 
member  of  the  Division  may  revise  his  price  list  accordingly,  to 
become  effective  on  the  same  elate  as  the  revised  price  list  first  filed. 

The  Divisional  Committee  shall  have  the  power  to  suspend  the 
operation  of  the  provisions  of  this  Section. 

3.  The  following  Unfair  Trade  Practices  arc  prohibited : 

(a)  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,  Avithout  the  knowledge  of 
such  emploj'er,  principal,  or  party.     This  provision  shall  not  be  con- 

(415) 


416 

strued  to  prohibit  free  and  ojeneral  distribution  of  articles  commonly 
used  for  advertising  except  so  far  as  such  articles  are  actually  used 
for  commercial  bribery  as  hereinabove  defined. 

(b)  Using  or  substituting  any  material  inferior  in  quality  to  that 
specified  by  the  purchaser  of  any  product, 

(c)  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. 

(d)  The  secret  payment  or  allowance  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 
sjDecial  services  or  privileges  not  extended  to  all  purchasers  on  like 
terms  and  conditions. 

(e)  The  branding  or  marking  of  any  product  of  the  Division  in 
any  manner  which  tends  to  deceive  or  mislead  purchasers,  with  re- 
spect to  the  grade,  quality,  quantity,  origin,  size,  material  content, 
or  jDreparation  of  such  product. 

(f )  Selling  on  more  liberal  terms  than  3/10  E.O.M. 

(g)  The  failure  to  plainly  mark  seconds. 

(h)  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  Division,  or  the  credit  terms, 
values,  policies,  or  services  of  any  member  of  the  Division,  or  other- 
wise, having  the  tendency  or  capacity  to  mislead  or  deceive  customers 
or  prospective  customers. 

(i)  Making  sales  upon  any  other  terms  than  expressly  set  forth 
in  the  invoice  pertaining  to  such  sales. 

4.  The  selling  or  offering  for  sale  of  any  product  of  the  Division 
on  memorandum  or  on  consignment  or  on  conditional  sale  shall  be 
an  unfair-trade  practice. 

The  Divisional  Committee  shall  have  the  power  to  suspend  the 
operation  of  the  provisions  of  this  Section. 

Ill — Hours 

1.  Members  of  the  Division  shall  not  operate  for  more  than  one 
shift  of  forty  (40)  hours. 


TABLE   PAD   DIVISION 

Division  No.  3 

I — Definition 

The  term  "  Table  Pad  Division  "  as  used  herein  inchides  all  mem- 
bers of  the  Industry  producing  table  pads  and/or  table  mats. 

II — Trade  Practices 

1.  No  member  of  the  Division  shall  sell  or  exchange  or  offer  to 
sell  any  product  of  the  Division,  except  small  novelty  mats,  belov7 
his  own  cost  of  labor  and  raw  materials  except  to  meet  the  competi- 
tion of  any  member  of  the  Division  whose  price  for  a  product  of 
equivalent  quality  is  not  less  than  his  own  cost.  When  a  uniform 
and  standard  system  of  cost  accounting,  prescribed  by  the  Divisional 
Committee,  shall  be  approved  by  the  Administrator,  every  member  of 
the  Division  shall  use  a  svstem  of  accounting  wdiich  conforms  to  the 
principles'  of  such  system.  The  Divisional  Committee  shall,  subject 
to  the  approval  of  the  Administrator,  determine  the  cost  factors  to 
be  included  in  such  system. 

The  Divisional  Committee  shall  have  the  power  to  suspend  the 
operation  of  the  provisions  of  this  Section  and  to  make  provision 
for  the  disposal  of  discontinued  lines,  seconds,  and  other  sales  to  be 
excepted  from  the  application  of  this  Section. 

The  Administrator  may  suspend  the  operation  of  the  provisions 
of  this  Section  after  giving  notice  to  the  Division. 

2.  ]\Iembers  of  the  Division  shall  file  with  the  Divisional  Commit- 
tee a  schedule  of  prices  and  terms  of  sale  for  the  products  of  the 
Division,  except  small  novelty  mats,  within  thirty  (30)  days  after 
the  effective  date  of  this  Code.  Such  price  lists  may  be  revised  only 
upon  five  (5)  days  notice  by  registered  mail  to  the  Divisional  Com- 
mittee. The  Divisional  Committee  shall  immediately  send  copies 
of  all  price  lists  filed  to  all  members  of  the  Division. 

Members  of  the  Division  shall  not  sell  their  products  at  lower 
prices  or  on  more  liberal  terms  than  set  forth  in  their  own  price 
list.  When  any  member  of  the  Division  revises  his  price  list,  any 
other  member  of  the  Division  may  revise  his  price  list  accordingly, 
to  become  effective  on  the  same  date  as  the  revised  price  list  first  filed. 

The  Divisional  Committee  shall  have  the  povrer  to  suspend  the 
operation  of  the  provisions  of  this  Section. 

The  Administrator  may  suspend  the  operation  of  the  provisions 
of  this  Section  after  giving  notice  to  the  Division. 

3.  The  following  Unfair  Trade  Practices  are  prohibited : 

(a)  Giving,  permitting  to  be  given,  or  directly  offering  to  give, 
anything  of  value  for  the  purpose  of  influencing  or  rewarding  the 

(417) 


418 

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  con- 
strued to  prohibit  free  and  general  distribution  of  articles  commonly 
used  for  itdvertising,  except  so  far  as  such  articles  are  actually  used 
for  commercial  bribery  as  hereinabove  defined. 

(b)  Using  or  substituting  any  material  inferior  in  quality  to  that 
specified  by  the  purchaser  of  any  product. 

(c)  Maliciously  inducing  or  attempting  to  induce  the  breach  of  an 
existing  oral  or  written  contract  between  a  competitor  and  his  cus- 
tomer or  source  of  supply,  or  interference  with  or  obstructing  the 
performance  of  any  such  contractual  duties  or  services. 

(d)  The  secret  payment  or  allowance  of  rebates,  refunds,  commis- 
sions, credits,  or  unearned  discounts,  whether  in  the  form  of  money 
or  otherwise,  or  the  secret  extension  to  certain  purchasers  of  special 
services  or  privileges  not  extended  to  all  purchasers  on  like  terms 
and  conditions. 

(e)  The  branding  or  marking  of  any  product  of  the  Division 
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. 

(f )  Selling  on  more  liberal  terms  than  2%  10  days,  end  of  month, 
net  60  days. 

(g)  The  failure  to  plainly  mark  seconds. 

(h)  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  Division,  or  the  credit  terms, 
values,  policies,  or  services  of  any  member  of  the  Division,  or  other- 
wise, having  the  tendency  or  capacity  to  mislead  or  deceive  cus- 
tomers or  prospective  customers. 

(i)  Making  sales  upon  any  other  terms  than  expressly  set  forth 
in  the  invoice  pertaining  to  such  sales. 

(j)  Making  any  allowances  or  discounts  for  advertising  or  for 
payment  for  space  in  newspapers,  magazines,  guides,  or  directories  on 
behalf  of  any  retailer  to  be  used  in  promoting  the  sale  of  merchan- 
dise to  the  consumer.  The  supplying  of  cuts,  matrices,  or  window 
cards  shall,  how^ever,  not  be  included  in  such  prohibition.  This 
provision  shall  not  be  circumvented  by  advertising  directly  for  the 
benefit  of  any  purchaser  or  particular  group  of  purchasers.  Nothing 
herein,  however,  shall  be  deemed  to  prohibit  any  member  of  the  Di- 
vision from  nationally  or  generally  advertising  his  merchandise  so 
as  to  benefit  all  of  his  trade  equally. 


QUILTING  DIVISION 

Division  No.  4 

I — Definition 

The  term  "  Quilting  Division  "  as  used  herein  inchides  all  members 
of  the  Industry  producing  quilting  and  quilting  products, 

II — Trade  Practices 

1.  No  member  of  the  Division  shall  sell  or  exchange  or  offer  to  sell 
any  product  of  the  Division  below  his  own  cost,  when  and  if  same 
ma.y  be  determined  as  herein  provided,  except  to  meet  the  competi- 
tion of  any  member  of  the  Division  whose  price  for  a  product  of 
equivalent  quality  is  not  less  than  his  own  cost.  When  a  uniform 
and  standard  S3^stem  of  cost  accounting,  prescribed  by  the  Divisional 
Committee,  shall  be  approved  by  the  Administrator,  every  member 
of  the  Division  shall  use  a  system  of  accounting  which  conforms  to 
the  principles  of  such  system.  The  Divisional  Committee  shall,  sub- 
ject to  the  approval  of  the  Administrator,  determine  the  cost  factors 
to  be  included  in  such  system. 

The  Divisional  Committee  shall  have  the  power  to  suspend  the 
operation  of  the  provisions  of  this  Section  and  to  make  provision 
for  the  disposal'  of  discontinued  lines,  seconds,  and  other  sales  to  be 
excepted  from  the  application  of  this  Section. 

2.  Members  of  the  Division  shall  file  with  the  Divisional  Com- 
mittee a  schedule  of  prices  and  terms  of  sale  for  the  products  of  the 
Division,  within  thirty  (30)  days  after  the  effective  date  of  this 
Code.  Such  price  lists  may  be  revised  only  upon  five  (5)  days'  notice 
by  registered  mail  to  the  Divisional  Connnittee.  The  Divisional 
Committee  shall  immediately  send  copies  of  all  price  lists  filed 
to  all  members  of  the  Division. 

Members  of  the  Division  shall  not  sell  their  products  at  lower 
prices  or  on  more  liberal  terms  than  set  forth  in  their  oAvn  price  list. 
When  any  member  of  the  Division  revises  his  price  list,  any  other 
member  of  the  Division  may  revise  his  price  list  accordingly,  to 
become  effective  on  the  same  date  as  the  revised  price  list  first  filed. 

The  following  may  be  sold  without  filing  revised  price  lists  there- 
for, but  shall  be  reported  to  the  Divisional  Connnittee  innnediately 
after  sale :  dropped  lines  and  seconds. 

The  Divisional  Conmiittee  shall  have  the  power  to  suspend  the 
operation  of  the  provisions  of  this  Section. 

3.  The  following  Unfair  Trade  Practices  are  prohibited : 

(a)  Giving,  permitting  to  be  given,  or  directly  offering  to  give, 
anything  of  value  for  the  purpose  of  infiuencing  or  rewarding  the 
action  of  any  employee,  agent,  or  representative  of  another  in  rela- 

(419) 


420 

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  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. 

(b)  Using  or  substituting  any  material  inferior  in  quality  to  that 
specified  by  the  purchaser  of  any  product. 

(c)  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. 

(d)  The  secret  payment  or  allowance  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, 

(e)  The  branding  or  marking  of  any  product  of  the  Division  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. 

(f)  Selling  on  more  liberal  terms  than  3/10  E.O.M. 

(g)  The  failure  to  plainly  stamp  seconds. 

(h)  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  p)roduct  of  the  Division,  or  the  credit  terms, 
values,  policies,  or  services  of  any  member  of  the  Division,  or  other- 
wise, having  the  tendency  or  capacity  to  mislead  or  deceive  customers 
or  prospective  customers. 

(i)  Making  sales  upon  any  other  terms  than  expressly  set  forth  in 
the  invoice  pertaining  to  such  sales. 

4.  The  selling  or  offering  for  sale  of  any  product  of  the  Division 
on  memorandum  or  on  consignment  or  on  conditional  sale  shall  be 
an  unfair  trade  practice. 

The  Divisional  Committee  shall  have  the  power  to  suspend  the 
operation  of  the  provisions  of  this  Section. 


FABRIC  AUTO  EQUIPMENT  DIVISION 

Division  No.  5 

I— DEriNITION 

The  term  "  Fabric  Auto  Equipment  Division "  as  used  herein 
includes  all  member.s  of  the  Industry  producing  auto  seat  and  slip 
covers,  tire  covers,  top  covers,  side  curtains,  auto  awnings,  and  fabric 
accessories  for  automobiles. 

II — Trade  Practices 

The  following  Unfair  Trade  Practices  are  prohibited : 

(a)  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  branding  or  marking  of  any  product  of  the  Division  in 
any  manner  which  tends  to  deceive  or  mislead  purchasers,  with  re- 
spect to  the  grade,  quality,  quantity,  origin,  size,  material  content,  or 
preparation  of  such  product. 

(c)  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  gi'ade, 
quality,  quantity,  substance,  character,  nature,  origin,  size,  finish, 
or  preparation  of  any  product  of  the  Division,  or  the  credit  terms, 
values,  policies,  or  services  of  any  member  of  the  Division,  or  other- 
wise, having  the  tendency  or  capacity  to  mislead  or  deceive  customers 
or  prospective  customers. 

(d)  The  failure  to  plainly  stamp  seconds. 

(e)  Rendering  a  bill  or  statement  of  account  which  is  inaccurate 
in  any  particular. 

(f)  Failure  to  show  the  present  2%  excise  tax  on  the  invoice  as 
a  separate  item,  excejiting  in  the  case  of  those  members  of  tlie  Divi- 
sion who  sell  to  the  jobbing  or  wholesale  trade,  who  shall  include 
the  excise  tax  in  their  selling  price. 

(g)  The  selling  or  offering  for  sale  of  any  product  of  the  Divi- 
sion on  memorandum  or  on  consignment  or  on  conditional  sale  shall 
be  an  unfair  trade  practice. 

The  Divisional  Committee  shall  have  the  power  to  suspend  the 
operation  of  the  provision  of  this  Section. 

(h)   Selling  on  more  liberal  terms  than  2%  10  days  E.O.M.  net  30. 
(i)   Failure  to  invoice  samples  of  complete  products. 

(421) 


COVERED  CARPET  PADDING  DIVISION 

Division  No.  6 

I — Definition 

The  term  "  Covered  Carpet  Padding  Division  "  as  used  herein  in- 
cludes all  members  of  the  Industry  producing  padded,  quilted,  paper, 
and/or  cloth  covered  carpet  and  rug  linings  and  stair  pads. 

II — Trade   Practices 

1.  No  member  of  the  Division  shall  sell  or  exchange  or  offer  to  sell 
any  product  of  the  Division  below  his.  own  cost,  when  and  if  same 
may  be  determined  as  herein  provided,  except  to  meet  the  competi- 
tion of  any  member  of  the  Division  whose  price  for  a  product  of 
equivalent  quality  is  not  less  than  his  own  cost.  When  a  uniform 
and  standard  system  of  cost  accounting,  prescribed  by  the  Divisional 
Committee,  shall  be  approved  by  the  Administrator,  every  member  of 
the  Division  shall  use  a  system  of  accounting  which  conforms  to  the 
principles  of  such  systein.  The  Divisional  Committee  shall,  subject 
to  the  approval  of  the  Administrator,  determine  the  cost  factors  to 
be  included  in  such  system. 

The  Divisional  Committee  shall  have  the  power  to  suspend  the 
operation  of  the  provisions  of  this  Section  and  to  make  provision  for 
the  disposal  of  discontinued  lines,  seconds,  and  other  sales  to  he 
excepted  from  the  application  of  this  Section.  ^ 

2.  Members  of  the  Division  shall  file  with  the  Divisional  Com- 
mittee a  schedule  of  prices  and  terms  of  sale  for  the  products  of  the 
Division,  within  thirty  (30)  days  after  the  effective  date  of  this 
Code.  Such  price  lists  may  be  revised  only  upon  five  (5)  days 
notice  by  registered  mail  to  the  Divisional  Committee.  The  Divi- 
sional Committee  shall  immediately  send  copies  of  all  price  lists 
filed  to  all  members  of  the  Division. 

Members  of  the  Division  shall  not  sell  their  products  at  lower 
prices  or  on  more  liberal  terms  than  set  forth  in  their  own  price  list. 
When  any  member  of  the  Division  revises  hi,s  price  list,  any  other 
member  of  the  Division  may  revise  his  price  list  accordingly,  to 
become  effective  on  the  same  date  as  the  revised  price  list  first  filed. 

The  following  may  be  sold  without  filing  revised  price  lists  there- 
for, but  shall  be  reported  to  the  Divisional  Committee  immediately 
after  sale:  dropped  lines. 

The  Divisional  Committee  shall  have  the  power  to  suspend  the 
operation  of  the  provisions  of  this  Section. 

3.  The  following  Unfair  Trade  Practices  are  prohibited : 
(a)   Giving,  permitting  to  be  given,  or  directly  offering  to  give] 

anything  of  value  for  the  purpose  of  influencing  or  rewarding  thr 

(422) 


423 

action  of  any  emi^loyee,  agent  or  representative  of  another  in  relation 
to  the  business  of  the  emph)yer  of  such  eniplo^'ee,  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  commonly  used 
for  advertising  except  so  far  as  such  articles  are  actually  used  for 
commercial  bribery  as  hereinabove  defined. 

(b)  Using  or  substituting  any  material  inferior  in  quality  to  that 
specified  by  the  purchaser  of  any  product. 

(c)  Maliciously  inducing  or  attempting  to  induce  the  breach  of  an 
existing  oral  or  written  contract  between  a  competitor  and  his  cus- 
tomer or  source  of  supply,  or  interference  with  or  obstructing  the 
performance  of  any  such  contractual  duties  or  services. 

(d)  The  secret  payment  or  allowance  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. 

(e)  The  branding  or  marking  of  any  product  of  the  Division  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. 

(f)  Selling  on  more  Hberal  terms  than  5/10  or  4/10/60  Ex. 

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

(h)  Making  sales  upon  any  other  terms  than  expressly  set  forth 
in  the  invoice  pertaining  to  such  sales. 


MOTOR  ROBE  DIVISION 
Division  No.  7 

I — Definition 

The  term  "  Motor  Robe  Division  "  as  used  herein  includes  all 
members  of  the  Industry  producing  motor  robes  exclusive  of  loom- 
finished,  fringed  steamer  rugs. 

II — Trade  Practices 

1.  All  deliveries  shall  be  F.O.B.  factor}^  or  within  the  Metropoli- 
tan District  thereof. 

2.  The  following  Unfair  Trade  Practices  are  prohibited : 

(a)  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  allowance  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)  Selling  on  more  liberal  terms  than  2%  10  days  E.O.M.  except 
that  for  shipments  made  to  points  w^est  of  the  Rocky  Mountains 
terms  shall  be  2%  10  days  E.O.M.  or  2%  10  days  after  receipt  of 
goods.  Goods  invoiced  on  and  after  the  twenty-fifth  of  any  month 
may  be  dated  as  of  the  first  day  of  the  following  month.  No  antic- 
ipation shall  be  allowed  at  a  greater  rate  than  6%  per  annum. 

(d)  Making  guarantiees  against  price  fluctuations. 

(424) 

o 


Approved  Code  No.  227 
CODE  OF  FAIR  COMPETITION 

FOR  THE 

WET  MOP  MANUFACTURING  INDUSTRY 

As  Approved  on  January  23,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

WET  MOP  MANUFACTURING  INDUSTRY 

An  application  having  been  duly  made  pursuant  to  and  in  full  com- 
pliance with  the  provisions  of  Title  I  of  the  National  Industrial 
Recovery  Act,  approved  June  16,  1933,  for  approval  of  a  Code  of 
Fair  Competition  for  the  Wet  Mop  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  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  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  2S,  1934-. 

35309° 313-114 34       (425) 


The  President, 

The  White  House. 


INTRODUCTION 


Sir:  This  is  a  report  on  the  Hearing  on  the  Code  of  Fair  Com- 
petition for  the  Wet  Mop  Manufacturing  Industry,  submitted  by  the 
Wet  Mop  Manufacturers  Association. 

The  Hearing  was  conducted  in  Washington  on  November  22,  1933. 
Every  person  who  filed  requests  for  Hearing  was  freely  heard  in 
public  and  all  statutory  and  regulatory  requirements  were  complied 
with. 

Attached  herewith  is  a  copy  of  the  Code  which  was  presented  by 
duly  qualified  and  authorized  representatives  of  the  Industry,  com- 
plying with  the  statutory  requirements  as  representing  45.5  percent 
of  the  total  number  of  producers  in  the  Industry  and  75  percent  of 
the  volume. 

EVIDENCE  SUBMITTED 

Evidence  presented  showed  a  total  of  thirty-four  concerns  em- 
ploying, in  the  first  quarter  of  1933,  a  total  of  381  employees,  while 
after  the  passage  of  the  National  Industrial  Recovery  Act  and  as  a 
result  of  the  President's  Reemployment  Agreement,  employment 
jumped  to  533  employees  for  the  industry. 

It  was  brought  out  that  all  members  of  the  Industry  had  not  only 
been  invited  to  join  the  Association  but  all  had  been  urged  repeatedly 
to  take  their  proper  part  in  the  formulation  of  the  proposed  Code. 
Notices  were  mailed  to  every  known  concern  which  was  conceivably 
engaged  in  Wet  Mop  Manufacture.  Likewise,  every  conceivably 
known  manufacturer  of  wet  mops  was  notified  of  the  Public  Hearing 
on  this  Code. 

RESUME  or  PROVISIONS 

The  minimum  wages  established  in  this  code  of  $13.00  per  week 
for  the  Northern  section  of  the  country  and  $12.00  for  the  Southern 
section  are  identical  with  those  established  in  the  Code  for  the  Cotton 
Textile  Industry.  Because  of  the  fact  that  a  number  of  wet  mop 
manufacturers  spin  their  own  yarn,  it  is  clearly  evident  that  the 
labor  conditions  are  substantially  the  same. 

One  Southern  manufacturer  protested  against  the  proposed  mini- 
mum wage  established  in  the  Code,  in  a  statement  that  many  of  his 
employees  are  so-called  marginal'  producers  or  substandard  workers. 
This  statement  was  that  such  substandard  employees  could  not 
produce  either  the  quality  or  the  quantity  of  material  as  that  pro- 
duced by  his  competitors  and  that  he,  therefore,  desired  a  lower 
minimum  wage. 

(426) 


427 

In  the  belief  that  there  is  ample  productive  machinery  within  the 
industry  to  produce  all  of  the  requirements  in  two  shifts  for  forty 
hours  each  per  week,  there  is  a  provision  in  this  code  limiting  the 
operation  of  productive  machinery  to  the  above-stated  hours  per 
week,  which  is  similar  to  that  established  for  the  Cotton  Textile 
Industry. 

It  was  further  pointed  out  that  there  is  certain  competition  in  this 
Industry  from  the  institutions  for  the  blind.  In  view  of  the  fact 
that  there  is  a  definite  feeling  among  these  institutions  that  they  wish 
to  be  a  part  and  parcel  of  the  National  movement  for  the  betterment 
of  the  Industry,  an  amendment  was  added  calling  for  cooperation 
between  the  Code  Authority  for  the  Wet  Mop  Manufacturing  Indus- 
try and  a  committee  established  to  represent  the  institutions  for  the 
blind.     The  committee  to  be  made  up  as  follows : 

Chairman  of  the  Code  Committee  of  the  American  Associa- 
tion of  Workers  for  the  Blind. 

President  of  this  Association,  or  his  representative. 

A  representative  from  the  American  Foundation  for  the 
Blind. 

The  minimum  wage  and  maximum  hour  provisions  of  the  Code  are 
not  to  apply  to  institutions  for  the  blind  which  comply  with  the 
rules  and  regulations  of  the  above  committee. 

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,  includ- 
ing 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 
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)  or  Section  10  thereof;  and  that  the  applicant 
association  is  an  industrial  association  truly  representative  of  the 


428 

aforesaid  Industry;   and  that  said  association  imposes  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,  the  Code  has  been  approved. 
Respectfully, 

Hugh  S.  Johnson, 

Adrninistrator. 

January  23,  1934. 


CODE  OF  FAIR  COMPETITION 

FOR  THE 

WET  MOP  MANUFACTURING  INDUSTRY 

Article  I — Purposes 

To  effectuate  the  policies  of  Title  I  of  the  National  Iiidnstrial 
Recovery  Act,  the  following  provisions  are  established  as  a  Code  of 
Fair  Competition  for  the  Wet  Mop  Manufacturing  Industry,  and 
shall  be  the  standard  of  fair  competition  for  such  industry  and 
shall  be  binding  upon  every  member  thereof. 

Article  II — Definitions 

1.  The  term  "  industry  "  as  used  herein  includes  the  manufacture 
or  sale  by  the  manufacturer,  of  wet,  or  scrub,  mop  heads  and/or  mops. 

2.  The  term  "  employee  "  as  used  herein  includes  anyone  engaged 
in  the  industry  in  any  capacity  receiving  compensation  for  his  serv- 
ices, irrespective  of  the  nature  or  method  of  payment  of  such 
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  "  President ",  "Act '',  and  "Administrator  "  as  used 
herein  shall  mean  respectively  the  President  of  the  United  States, 
Title  I  of  the  National  Industrial  Recovery  Act,  and  the  Adminis- 
trator of  Title  I  of  said  Act. 

Article  III — Hours 

1.  (a)  No  employee  shall  be  permitted  to  work  in  excess  of  40 
hours  in  any  one  week  or  8  hours  in  any  twenty-four  (24)  hour 
period,  except  as  hereinafter  provided. 

(b)  Executives  and  employees  in  a  managerial  or  supervisory 
capacity  who  receive  $35  or  more  per  week  are  excepted  from  the 
maximum-hour  provisions  of  this  section. 

(c)  Repair-shop  crews,  firemen,  engineers,  electricians,  outside 
crews  and  cleaners  shall  not  be  permitted  to  work  in  excess  of  44 
hours  per  week. 

(d)  Truckmen  shall  not  be  permitted  to  work  in  excess  of  48  hours 
per  week. 

(e)  Watchmen  shall  not  be  permitted  to  work  in  excess  of  56  hours 
per  week. 

(429) 


430 

2.  The  maximum  hours  fixed  in  the  foregoing  section  shall  not 
apply  to  any  employee  on  emergency  maintenance  or  emergency 
repair  work  involving  breakdowns  or  protection  of  life  or  property, 
but  in  any  such  special  case  at  least  one  and  one  third  times  his 
normal  rate  shall  be  paid  for  hours  worked  in  excess  of  the  maximum 
hours  herein  provided.  All  such  emergency  time  shall  be  reported 
monthly  to  the  Code  Authority  hereinafter  provided  for. 

3.  No  productive  machinery  in  the  industry  shall  be  operated 
for  more  than  two  shifts  of  40  hours  each  per  week. 

Article  IV — Wages 

1.  No  employee  shall  be  paid  at  less  than  the  rate  of  3214  cents  per 
hour  in  the  North,  and  30  cents  per  hour  in  the  South.  The  South 
shall  include  the  section  of  the  United  States  consisting  of  the 
States  of  Virginia,  North  Carolina,  South  Carolina,  Georgia,  Ten- 
nessee, Alabama,  Mississippi,  Louisiana,  Texas,  and  Florida.  The 
North  shall  mean  the  rest  of  the  United  States. 

2.  This  Article  establishes  a  minimum  rate  of  pay,  regardless  of 
whether  an  employee  is  compensated  on  a  time-rate,  piece-work,  or 
other  basis. 

3.  Eates  of  pay  in  excess  of  the  minimum  hereinbefore  prescribed 
shall  be  increased  so  as  to  preserve  equitable  differentials. 

4.  Female  employees  performing  substantially  the  same  work  as 
male  employees  shall  receive  the  same  rates  of  pay  as  male  employees. 

Article  V — General  Labor  PR0\^sI0NS 

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.  In  any  State  an  employer  shall  be  deemed  to  have  complied 
with  the  age  provisions  of  this  section  if  he  shall  have  on  file  a 
certificate  or  permit  duly  issued  by  the  authority  in  such  State  em- 
powered to  issue  employment  or  age  certificates  or  permits,  showing 
that  the  employee  is  of  the  required  age. 

2.  Emploj'^ees  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 
OS  a  condition  of  employment  to  join  any  company  union  or  to  re- 
frain from  joining,  organizing,  or  assisting  a  labor  organization  of 
his  own  choosing. 

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

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


431 

6.  Emploj'crs  shall  not  reclassify  employees  or  duties  of  occupa- 
tions performed  by  emplo3'ees  so  as  to  defeat  the  purposes  of  the 
Act. 

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

Article  VI — Administration 

To  further  effectuate  the  policies  of  the  Act,  a  Code  Authority  is 
hereb}^  constituted  to  cooperate  with  the  Administrator  in  the  admin- 
istration of  this  Code. 

1.  Organization  and  constitution  of  Code  Authority: 

(a)  The  Code  Authority  shall  consist  of  five  (5)  individuals,  or 
such  other  number  as  may  be  approved  from  time  to  time  by  the 
Administrator,  to  be  selected  as  hereinafter  set  forth.  The  Admin- 
istrator, at  his  discretion,  may  appoint  not  more  than  three  (3)  addi- 
tional members  (without  vote)  to  represent  the  Administrator  or 
such  groups  or  interests  as  may  be  agreed  upon. 

(b)  The  Wet  Mop  Manufacturers  Association  shall  call  a  meet- 
ing of  the  entire  industry  for  the  purpose  of  electing  the  five  indus- 
try members  of  the  Code  Authority,  said  meeting  to  take  place  not 
less  than  20  days  after  the  approval  of  this  Code  by  the  President, 
unless  such  time  shall  be  extended  by  the  Administrator  or  his 
Deputy  upon  the  request  of  the  Association.  Each  member  of  the 
industry  shall  have  one  vote  in  electing  these  members  of  the  Code 
Authority,  subject  to  the  provisions  of  subsection  2  (h)  of  this 
Article.  Until  such  Code  Authority  shall  have  been  selected,  the 
duties  and  powers  of  the  Code  Authority  shall  be  exercised  by  the 
Administrator  or  his  Deputy. 

(c)  Each  trade  or  industrial  association  directly  or  indirectly 
participating  in  the  selection  or  activities  of  the  Code  Authority 
shall:  (1)  Impose  no  inequitable  restrictions  on  membership  and 
(2)  submit  to  the  Administrator  true  copies  of  its  articles  of  asso- 
ciation, bylaws,  regulations,  and  any  amendments  when  made  thereto, 
together  with  such  other  information  as  to  membership,  organiza- 
tion, and  activities  as  the  Administrator  may  deem  necessary  to 
effectuate  the  purposes  of  the  Act. 

(d)  In  order  that  the  Code  Authority  shall  at  all  times  be  truly 
representative  of  the  industry  and  in  other  respects  comply  with 
the  provisions  of  the  Act,  the  Administrator  may  provide  such  hear- 
ings as  he  may  deem  proper;  and  thereafter,  if  he  shall  find  that  the 
Code  Authoritj^  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  additional  duites 
and  powers  to  the  extent  permitted  by  the  Act,  subject  to  the  right 
of  the  Administrator  on  review  to  veto  or  modify  any  action  taSen 
by  it. 

(a)  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 


432 

person  and  to  report  the  same  to  the  Administrator,  or  such  agencies 
as  he  may  designate. 

(b)  The  Code  Authority  shall  collect  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, 
stock,  prices,  and  such  other  data  pertinent  to  the  effectuation  of  the 
purposes  of  this  Code  as  may  be  required  by  the  Administrator. 

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

(d)  The  Code  Authority  shall,  subject  to  the  approval  of  the  Ad- 
ministrator, make  such  rules  and  regulations  as  shall  be  necessary 
to  make  effective  the  power  granted  to  it  hereunder. 

(e)  The  Code  Authority  may  from  time  to  time  present  to  the 
Administrator  recommendations  based  on  conditions  in  this  industry 
as  they  may  develop  which  will  tend  to  effectuate  the  operation  of  the 
provisions  of  this  Code  and  the  policies  of  the  Act. 

(f)  The  Code  Authority  may  by  regulations  duly  adopted  from 
time  to  time  appoint  such  subcommittees  or  designate  such  agencies 
and  may  delegate  to  any  of  them  such  of  its  powers  and  duties  as 
it  shall  deem  necessary  or  proper  in  order  to  carry  out  the  provi- 
sions of  this  Code. 

(g)  Any  interested  party  shall  have  the  right  of  appeal  to  the 
Administrator  under  such  rule^  and  regulations  as  he  may  prescribe 
in  respect  to  any  rule,  regulation,  or  other  course  of  action  issued  or 
taken  by  the  Code  Authority. 

(h)  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  thi^  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  Adminis- 
trator, on  the  basis  o,f  volume  of  business,  and/or  such  other  factors 
as  may  be  deemed  equitable  to  be  taken  into  consideration. 

3,  If  the  Administrator  shall  determine  that  any  action  of  a  code 
authority  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  days  to  afford  an 
opportunity  for  investigation  of  the  merits  of  such  action  and  fur- 
ther consideration  by  such  code  authority  or  agency  pending  final 
action,  which  shall  be  taken  only  upon  approval  by  the  Adminis- 
trator. 

Article  VII — ^Trade  Practices 

1.  The  Wet  Mop  Manufacturing  Industry  recognizes  the  humane 
considerations  attached  to  products  of  institutions  for  the  blind,  and 
in  order  to  give  constructive  assistance  and  to  prevent  unfair  compe- 
tition, it  is  the  will  and  purpose  of  the  industry  to  cooperate  with 
such  institutions.  To  effectuate  such  purpose,  a  committee  as  here- 
inafter provided,  shall  be  recognized  by  the  Code  Authority  for  the 


433 

purpose  of  conferrinor  with  the  Code  Authority  and  adjusting  all 
matters  arising  out  of  the  competition  of  the  products  of  the  blind 
as  they  affect  this  industry.  This  Committee  shall  secure  necessary 
data  from  institutions  for  the  blind  relative  to  all  matters  affecting 
competition  of  the  blind  in  this  industry. 

The  committee  shall  be  made  up  as  follows :  Chairman  of  the  Code 
Committee  of  the  American  Association  of  Workers  for  the  Blind, 
President  or  his  representative  of  the  American  Association  of 
Workers  for  the  Blind,  and  a  representative  from  the  A^merican 
Foundation  for  the  Blind. 

The  minimum  wage,s  and  maximum  hours  provisions  shall  not 
apply  to  institutions  for  the  blind  which  comply  with  the  rules  and 
regulations  of  the  above  committee,  after  such  rules  and  regulations 
are  approved  by  the  Administrator. 

2.  Within  30  days  from  the  effective  date  of  this  Code  each  handled 
mop  or  mop  head  shall  be  plainly  marked,  indicating  the  size  (actual 
weight  of  mopping  material,  i.e.  yarns,  fabrics,  twines,  or  slasher), 
and  shall  bear  a  brand  or  mark  to  identify  the  manufacturer:  the 
marking  to  be  stamped  on  the  handle  or  printed  on  the  label  at- 
tached to  the  handle,  or  on  a  tab  attached  to  the  mop  head.  All 
brands  or  marks  shall  be  filed  with  the  Code  Authority  for  the  pur- 
pose of  identification  of  the  product. 

3.  The  following  practices  constitute  unfair  methods  of  competi- 
tion for  members  of  the  industry  and  are  prohibited : 

(a)  False  Marking  or  Branding. — The  false  marking  or  branding 
of  any  product  of  the  industry  which  has  the  tendency  to  mislead  or 
deceive  customers,  or  prospective  customers,  whether  as  to  the  grade, 
quality,  quantity,  substance,  character,  nature,  origin,  size,  finish,  or 
preparation  of  any  product  of  the  industry,  or  otherwise. 

(b)  Misreyresentation  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, 
quantit}^,  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,  liaving 
the  tendency  to  mislead  or  deceive  customers  or  prospective 
customers. 

(c)  Commercial  Bribery . — No  member  of  the  industry  shall  give, 
permit  to  be  given,  or  directl}^  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 
emploA^er  of  such  emploj^ee,  the  principal  of  such  agent,  or  the  repre- 
sented party,  without  the  knowledge  of  such  emploj^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  com- 
mercial bribery  as  hereinabove  defined. 

(d)  Interference  with  contractual  relations. — Maliciously  inducing 
or  attempting  to  induce  a  breae'h  of  an  existing  oral  or  written  con- 
tract between  a  competitor  and  his  customer  or  source  of  supply,  or 
interfering  with  or  obstructing  the  performance  of  any  such  con- 
tractual duties  or  services. 


434 

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

(f )  Defamation. — The  defamation  of  competitors  by  falsely  imput- 
ing to  them  dishonorable  conduct,  inability  to  perform  contracts, 
questionable  credit  standing,  or  by  other  false  representations  or  by 
the  false  disparagement  of  the  grade  or  quality  of  their  goods. 

(g)  Threats  of  litigation. — The  publishing  or  circulating  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. 

(h)  Other  unfair  practices. — Nothing  in  this  Code  shall  limit  the 
effect  of  any  adjudication  by  the  courts,  or  holding  by  the  Federal 
Trade  Commission,  on  complaint,  finding,  and  order  that  any  prac- 
tice or  method  is  unfair,  providing  that  such  adjudication  or  hold- 
ing is  not  inconsistent  with  any  provision  of  the  Act  or  of  this  Code. 

Article  VIII — Modification 

1.  This  Code  and  all  the  provisions  thereof  are  expressly  made  sub- 
ject to  the  right  of  the  President  in  accordance  with  the  provisions 
of  subsection  (b)  of  Section  10  of  the  Act,  from  time  to  time  to  can* 
eel  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  on  the  basis  of  experience  or  changes  in  circumstances,  such 
modification  to  be  based  upon  application  to  the  Administrator  and 
such  notice  of  hearing  as  he  shall  specify,  and  to  become  effective  on 
approval  of  the  Administrator. 

Article  IX — Monopolies,  Etc. 

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

Article  X — Price  Increases 

Whereas  the  policy  of  the  Act  to  increase  real  purchasing  power 
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  tenth  day  after  approval. 

Approved  Code  No.  227. 
Registry  No.  1609-08. 


Approved  Code  No.  228 
CODE  OF  FAIR  COMPETITION 


FOR  THE 


COIN  OPERATED  MACHINE  MANUFACTURING 

INDUSTRY 

As  Approved  on  January  23,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

COIN  OPERATED  MACHINE  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  Coin  Operated  Machine  Manufacturing 
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,  in  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  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  Recovery, 

Approval  recommended: 
ISIalcolm  Muir, 

Division  Administrator. 
Washington,  D.C, 

January  £3,  1031^. 

35372° 313-111 34  (435) 


The  President, 

The  White  House, 

Sir:  This  is  a  report  on  the  Code  of  Fair  Competition  for  the 
Coin  Operated  Machine  Manufacturing  Industry,  and  on  the  hear- 
ing conducted  thereon  in  Washington,  D.C.,  on  November  23,  1933, 
in  accordance  with  the  provisions  of  the  National  Industrial  Recov- 
ery Act. 

proat:sions  as  to  wages  and  hours 

The  Code  provides  a  minimum  wage  rate  for  production  employees 
of  40^  per  hour  in  the  North  and  35^  per  hour  in  the  South.  Watch- 
men, a  limited  number  of  handicapped  persons,  and,  for  not  to  ex- 
ceed 90  days,  a  limited  number  of  beginners  without  experience,  may 
be  paid  not  less  than  80%  of  the  foregoing  minima. 

AH  other  employees  are  to  be  paid  not  less  than  from  $14  to  $15 
per  week,  according  to  population,  except  that  a  limited  number  of 
office  boys  or  girls  may  be  paid  not  less  than  80%  of  these  minima. 

Equitable  adjustment  is  to  be  made  of  wages  above  the  minima 
to  maintain  differentials  existing  as  of  May  1,  1933. 

An  eight-hour  day  and  a  40-hour  week  are  provided,  except  that 
when  necessitated  by  peak  or  breakdown  demands,  employees  may 
work  not  to  exceed  48  hours  per  week.  Hours  worked  in  excess  of 
40  hours  iDer  week  without  payment  of  overtime,  shall  not  exceed, 
in  any  six  months'  period,  32  hours  for  production  employees  and  48 
hours  for  all  other  eraploj^ees,  and  in  no  case  may  any  employees 
work  in  excess  of  96  hours  in  any  two  weeks'  period. 

No  detailed  statistics  relative  to  this  Industry  had  been  collected 
prior  to  the  formation  of  the  National  Association  of  Coin  Operated 
Machine  Manufacturers  in  August  1933.  This  Association  has  at- 
tempted to  get  figures  from  every  known  manufacturer  in  the  Indus- 
try and  based  on  the  returns  received  up  to  the  time  of  preparing 
this  report,  plus  a  reasonable  estimate  for  those  concerns  which  had 
not  at  that  time  reported,  the  following  figures  are  submitted  as  the 
best  estimate  possible  under  the  conditions : 


Number 
of  em- 
ployees 

Mini- 
mum 
wages 

Hours  per  week 

Weekly 
Payroll 

1928 

2,407 
2,  501 
2,390 
2,  501 
3,192 
3,300 

$0.37 
.37 
.31 
.285 
.340 
.400 

Range 
41-48 
41-48 
41-48 
41-45 
39-42 

Average 
44 
44 
44 
43 
40 
40 

$54, 900 

1930 

67,000 

1932 

45,300 

March  1933                                   .      . 

46, 400 

September  1933 

63,200 

Estimated  under  Code        . ... 

60,000 

Practically  all  members  of  the  Association  signed  the  President's 
Reemj^loyment  Agreement  in  August,  and  the  increase  in  employ- 

(436) 


437 

ment  resulting  from  reduced  hours  is  indicated  in.  the  figures  of  the 
first  twelve  companies  to  report.  These  companies  show  a  pay  roll  of 
1,416  employees  for  the  month  of  March  1933,  and  a  pay  roll  of  1,892 
employees  for  the  month  of  September  1933,  an  increase  of  33.6% 
over  March  1933. 

The  total  amoimt  paid  in  wages  to  factory  employees  only  by  these 
same  twelve  companies  increased  from  $116,789.77  in  March  1933 
to  $133,174.77  in  September  1933.  Reports  from  several  of  these 
companies  for  the  first  half  of  Novemoer  1933  show  further  sub- 
stantial increases  in  emplojnnent. 

Based  on  these  returns,  it  is  estimated  that  the  effect  of  operating 
under  the  Code  Pro^dsions  will  be  an  increase  in  the  annual  pay  roll 
of  at  least  $300,000  over  the  annual  rate  of  pay  roll  as  shown  in 
March  1933. 

I  believe  that  the  Code  as  proposed  is  fair  to  Industry,  to  Labor, 
and  to  the  Consumer,  and  is  in  accordance  with  the  intent  and  pur- 
pose of  the  National  Industrial  Recovery  Act. 

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- 
ploj'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. 


438 

(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. 
Eespectfully, 

Hugh  S.  Johnson, 

A  dmAnistrator. 
January  23,  1934. 


CODE  OF  FAIR  COMPETITION 

FOR  THE 

COIN  OPERATED  MACHINE  MANUFACTURING 

INDUSTRY 


Article  I — Purpose 

To  effectuate  the  policies  of  Title  I  of  the  National  Industrial 
Recovery  Act,  the  following  provisions  are  submitted  as  a  Code  of 
Fair  Competition  for  the  Coin  Operated  Machine  Manufacturing 
Industry,  and  upon  approval  by  the  President,  shall  be  the  standard 
of  fair  competition  for  such  Industry  and  shall  be  binding  upon 
every  member  thereof. 

Article  II — Definitions 

Section  1.  The  term  "  Industry  "  as  used  herein  shall  mean  and 
include  the  coin  operated  machine  manufacturing  industry  consist- 
ing of  manufacturers  of  all  types  of  coin  operated  machines  and 
devices  which  vend  amusement,  service,  or  commodities,  including 
manufacturers  of  coin  actuated  devices  for  use  in  such  machines,  or 
such  related  branches  or  subdivisions  thereof  as  may  from  time  to 
time  be  included  under  the  provisions  of  this  Code  by  the  President 
after  such  notice  and  hearing  as  he  may  prescribe,  but  shall  not 
include  manufacturers  of  coin  operated  telephone  or  gas-meter 
equipment. 

Sec.  2.  The  term  "  member  of  the  industry  "  as  used  herein  means 
and  includes  any  individual,  partnership,  association,  corporation, 
receiver,  trustee,  or  other  person,  without  limitation,  engaged  in  the 
Industry,  either  as  an  employer  or  on  his  or  its  own  behalf. 

Sec.  3.  The  term  "  employee  "  as  used  herein,  includes  any  and 
all  persons  engaged  in  the  Industry  except  a  member  of  the  Industry, 
however  compensated. 

Sec.  4.  The  terms  "  President ",  "Act ",  and  "Administrator  "  as 
used  herein  shall  mean  respectively  the  President  of  the  United 
States,  Title  I  of  the  National  Industrial  Recovery  Act,  and  the 
Administrator  for  Industrial  Recovery. 

Sec.  5.  (a)  The  term  "  South  "  as  used  herein  shall  mean  the 
States  of  North  Carolina,  South  Carolina,  Georgia,  Florida,  Ken- 
tucky, Tennessee,  Alabama,  Mississippi,  Louisiana,  and  Texas. 

(b)  The  term  "  North  "  as  used  herein  shall  mean  the  remaining 
States  of  the  United  States. 

Sec.  6.  Population,  for  the  purposes  of  this  Code,  shall  be  deter- 
mined by  reference  to  the  latest  Federal  census. 

(439) 


440 

Seo.  7.  The  words  "  export  trade  "  as  used  herein  shall  mean  solely 
trade  or  commerce  in  goods,  wares,  or  merchandise  exported  or  in 
the  course  of  being  exported  from  the  United  States  to  any  foreign 
nation. 

Article  III — Labor  Provisions 

WAGES 

Section  1.  As  required  by  Section  7  (a)  of  Title  I  of  the  National 
Industrial  Recovery  Act,  the  following  provisions  are  conditions  of 
this  Code: 

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

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

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

Sec.  2.  No  person  under  sixteen  (16)  years  of  age  shall  be  em- 
ployed in  the  Industry.  No  person  under  eighteen  (18)  years  of 
age  shall  be  employed  at  occupations  which  are  hazardous  in  nature 
or  dangerous  to  health.  The  Code  Authority  shall  submit  to  the 
Administrator  for  approval  within  sixty  (60)  days  after  approval 
of  this  Code  a  list  of  such  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  valid  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. 

Sec.  3.  (a)  On  and  after  the  effective  date  the  minimum  wage 
which  shall  be  paid  by  any  employer  to  any  employee  engaged  in 
the  processing  of  products  in  the  Industry  and  any  labor  incident 
thereto  shall  be  forty  (40^)  cents  per  hour  in  the  North. 

(b)  On  and  after  the  effective  date  the  minimum  wage  which 
shall  be  paid  by  any  employer  to  any  employee  engaged  in  the  pro- 
cessing of  products  of  the  Industry  or  any  labor  incident  thereto 
shall  be  thirty-five  cents  (35V)  per  hour  in  the  South. 

(c)  Provided  that  for  a  period  of  not  to  exceed  ninety  (90)  days, 
beginners  without  experience  may  be  paid  not  less  than  eighty  per- 
cent (80%)  of  the  minimum  wages  of  forty  cents  (40(^)  per  hour 
in  the  North,  and  thirty-five  cents  (350)  per  hour  in  the  South;  the 
total  number  of  such  beginners  shall  not  exceed  five  percent  (5%) 
of  the  total  number  of  employees  employed  by  any  such  employer  in 
any  calendar  month;  and 

(d)  Provided  further,  that  where  any  State  Law  requires  any 
higher  minimum  wages  than  those  specified  in  this  section,  such 
higher  minimum  wages  shall  apply  in  all  cases. 


441 

(e)  Equitable  adjustments  to  maintain  differentials  existing  as  of 
May  1,  1933,  in  all  pay  schedules  of  factory  employees  (and  other 
employees  receiving  less  than  Thirty-five  ($35.00)  Dollars  per  week) 
above  the  minimums  shall  be  made  on  or  before  fifteen  days  subse- 
quent to  the  effective  date  of  this  Code  by  any  employers  who  have 
not  heretofore  made  such  adjustments,  or  who  have  not  maintained 
rates  comparable  with  such  equitable  adjustments.  The  first  reports 
of  wages  required  to  be  filed  under  this  Code  shall  contain  all  wage 
increases  made  since  May  1,  1933. 

(f )  In  the  case  of  employees  performing  work  for  which  they  are 
paid  per  piece  of  work  performed,  the  minimum  rate  of  pay  which 
each  member  of  the  Industry  shall  pay  for  such  work  shall  produce 
earnings  per  hour  per  employee  for  the  number  of  hours  worked 
in  any  pay  period  at  least  equal  to  the  minimum  rate  of  pay  per 
hour  provided  in  this  Code  for  the  same  type  of  labor  on  an  hourly 
basis. 

Sec.  4.  On  and  after  the  effective  date  the  minimum  wage  that 
shall  be  paid  by  any  employer  to  all  other  employees,  except  com- 
mission sales  people  and  all  employees  covered  bj^  Section  3  of  Article 
III  hereof,  shall  be  not  less  than  at  the  rate  of  Fifteen  Dollars 
($15.00)  per  week  in  any  city  of  over  Five  Hundred  Tliousand  (500,- 
000)  population,  or  in  the  immediate  trade  area  of  such  city;  nor  less 
than  at  the  rate  of  Fourteen  Dollars  and  fifty  cents  ($14.50)  per 
week  in  any  city  between  Two  Hundred  and  Fifty  Thousand  (250,- 
000)  and  Five  Hundred  Thousand  (500,000)  population,  or  in  the 
immediate  trade  area  of  such  city;  nor  less  than  at  the  rate  of 
Fourteen  Dollars  ($14.00)  per  week  in  any  city  of  Two  Hundred 
and  Fifty  Thousand  (250,000)  population  or  less. 

Office  boj^s  and  girls  shall  be  exempt  from  the  provisions  of  this 
section,  provided  they  are  paid  at  a  rate  of  not  less  than  eighty 
percent  (80%)  of  the  above  minimum  wages,  and  provided  further 
that  the  number  of  such  office  boys  and  girls  under  this  section  shall 
not  exceed  one  for  companies  with  twenty  (20)  or  less  office  em- 
ployees nor  five  percent  (5% )  of  the  total  number  of  office  employees 
for  companies  with  more  than  twenty  (20)  office  employees. 

HOUES 

Sec.  5.  (a)  No  employee  shall  be  permitted  to  work  in  excess  of 
forty  (40)  hours  in  any  one  week.  The  normal  working  day  shall 
not  be  in  excess  of  eight  (8)  hours  in  any  twenty- four  (24)  hour 
period  beginning  at  midnight.  There  may  be  the  following  excep- 
tions to  this  weekly-hour  provision: 

1.  Executives,  administrative  or  supervisory  employees  who  receive 
thirty-five  dollars  ($35.00)  or  more  per  week,  and  outside  salesmen 
and  commission  salesmen,  shall  be  exempt  from  all  hour  limitations. 

2.  Employees  engaged  in  the  processing  of  products  in  the  Indus- 
try and  work  incident  thereto  in  branches  of  the  Industry  on  which 
seasonal  or  peak  demands  place  an  unusual  and  temporary  burden, 
and  employees  worldng  in  emergency  periods  resulting  from  break- 
downs, may  be  permitted  to  work  not  more  than  thirty -two  (32) 
additional  hours  in  any  six  (6)  months'  period,  but  not  more  than 


442 

forty-eight   (48)  hours  in  any  one  week,  without  the  payment  of 
overtime  as  j^rovided  in  Section  5  (a)  4. 

3.  Also  under  like  conditions  to  those  described  in  Section  5  (a)  2 
all  other  employees,  except  those  mentioned  in  Section  5  (a)  2,  may 
be  permitted  to  work  not  more  than  forty-eight  (48)  additional 
hours  in  any  six  (6)  months'  period,  but  not  more  than  forty-eight 
(48)  hours  in  any  one  week,  without  the  payment  of  overtime  as 
provided  in  Section  5  (a)  4. 

4.  All  employees  may  be  permitted  to  work  hours  in  addition  to 
those  specified  in  Section  5  (a),  5  (a)  2,  and  5  (a)  3,  provided  that 
overtime  at  the  rate  of  one  and  one  half  times  the  normal  rate  of 
pay  is  paid  for  such  additional  hours.  Under  no  circumstances  may 
any  employee  be  permitted  to  work  in  excess  of  ninety-six  (96) 
hours  in  any  two  consecutive  weeks. 

5.  All  hours  worked  in  excess  of  forty  (40)  hours  in  any  one 
week  after  the  date  of  the  approval  of  the  Code  shall  be  reported 
to  the  Administrator  through  the  Code  Authority. 

6.  No  employee  shall  knowingly  be  permitted  to  work  in  the 
aggregate  in  excess  of  the  above-prescribed  number  of  hours  irre- 
spective of  whether  such  employee  be  on  the  pay  roll  of  more  than 
one  employer. 

GENERAL  LABOR  PR0\1SI0NS 

Section  1.  (a)  It  is  understood,  however,  that  old  and  partially 
disabled  employees  are  not  included  in  the  above  wage  provisions, 
except  that  they  shall  in  no  case  be  paid  less  than  eighty  (80)  per- 
cent of  the  above  minimums,  and  provided  that  the  total  number  of 
such  employees  shall  not  exceed  two  (2)  employees  in  plants  having 
less  than  one  hundred  (100)  employees,  nor  more  than  two  (2)  per- 
cent of  the  total  number  of  employees  in  such  plants  employing  one 
hundred  (100)  or  more. 

(b)  It  is  further  understood  that  watchmen  are  not  included  in 
the  labor  provisions  of  tliis  Article,  except  that  they  shall  in  no  case 
be  paid  less  than  eighty  (80)  percent  of  the  minimum  wages  herein 
specified  and  in  no  case  shall  they  be  permitted  to  work  longer  than 
fifty-six  (56)  hours  in  any  one  week  unless  they  are  paid  tmie  and 
one  half  for  any  hours  in  excess  of  fifty-six  (56)  hours  per  week. 

Sec.  2.  Employers  shall  not  reclassify  employees,  or  duties,  or  oc- 
cupations of  employees,  nor  engage  in  any  other  subterfuge,  so  as  to 
defeat  the  purposes  of  this  Act. 

Sec.  3.  Complete  copies  of  this  Code  shall  be  posted  in  conspicuous 
places  accessible  to  all  employees. 

Article  IV — Organization,  Powers,  and  Duties  of  the  Code 

Authority 

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

Sec.  2.  The  Code  Authority  shall  consist  of  not  less  than  five  or 
more  than  seven  members,  to  be  elected  by  the  members  of  the  In- 
dustry who  assent  to  by  compliance  with  the  requirements  of  this 
Code,  and  who  assume  their  reasonable  share  of  the  expenses  of  the 
administration  as  hereinafter  set  forth,  the  method  of  election  and 


443 

voting  to  be  determined  by  the  Code  Committee  of  the  National  As- 
sociation of  Coin  Operated  Machine  Manufacturers,  subject  to  the 
approval  of  the  Administrator,  and  in  addition  thereto,  there  may 
be  from  one  to  three  representatives  to  be  appointed  by  the  Admin- 
istrator. The  representatives  who  may  be  appointed  by  the  Admin- 
istrator shall  be  without  vote  and  together  with  the  Administrator 
shall  be  given  notice  of  and  may  sit  at  all  meetings  of  the  Code 
Authority. 

Seo.  3.  The  National  Association  of  Coin  Operated  Machine  Man- 
ufacturers may  be  designated  as  the  agency  under  the  Code  Author- 
ity for  administering  provisions  of  this  Code. 

Sec.  4.  The  National  Association  of  Coin  Operated  Machine  Man- 
ufacturers and/or  other  associations  directly  or  indirectly  partici- 
pating in  the  selection  or  activities  of  the  Code  Authority  shall 
(1)  impose  no  inequitable  restrictions  on  membership,  and  (2)  sub- 
mit to  the  Administrator  true  copies  of  its  articles  of  association,  by- 
laws, regulations,  and  any  amendments  when  made  thereto,  to- 
gether with  such  other  information  as  to  membership,  organization, 
and  activities  as  the  Administrator  may  deem  necessary  to  effectuate 
the  purposes  of  the  Act. 

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  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. 

POWERS  AND  DUTIES 

Sec.  6.  The  Code  Authority  shall  have  the  following  powers  and 
duties  to  the  extent  permitted  by  the  Act.  Any  action  taken  by  the 
Code  Authority  or  its  delegated  agents  relative  to  the  administration 
of  this  Code,  except  where  made  subject  to  the  approval  of  the  Ad- 
ministrator, may,  in  the  discretion  of  the  Code  Authority,  be  sub- 
mitted to  the  Administrator  for  approval  and  in  any  case  shall  be 
subject  to  the  disapproval  of  the  Administrator. 

(a)  To  adopt  bylaws  and  rules  and  regulations  for  its  procedure 
and  for  the  administration  and  enforcement  of  the  Code  in  accord- 
ance with  the  powers  herein  granted,  except  that  a  majority  of  the 
voting  members  shall  be  required  for  a  quorum  and  a  vote  by  a  like 
number  shall  be  required  to  make  effective  any  formal  action  by 
the  Code  Authority.  The  Code  Authority  shall  submit  its  bylaws 
and  rules  and  regulations  for  procedure,  administration,  and  enforce- 
ment 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  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 


444 

and  enforcement  of  the  Code,  and  for  the  information  of  the  Presi- 
dent, and  to  give  assistance  to  members  of  the  Industry  in  improv- 
ing 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. 

(c)  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  Administrator  for  prosecution, 
recommendations  and  information  relative  to  unadjusted  violations. 

(d)  To  secure  an  equitable  and  proportionate  payment  of  the 
expenses  of  maintaining  the  Code  Authority  and  its  activities  from 
those  members  of  the  Industry  who  accept  the  benefits  of  the  activ- 
ities of  the  Code  Authority  and  indicate  their  desire  to  participate 
in  this  Code  and  their  assent  to  the  provisions  thereof  and  to  the 
payment  of  their  reasonable  share  of  the  expenses  of  the  administra- 
tion of  the  Code  as  hereinafter  set  forth. 

(e)  In  the  event  of  dispute  arising  as  to  the  rights  under  this 
Code,  any  member  shall  have  the  right  to  appeal  to  the  Code  Au- 
thority, and  the  decision  of  said  Code  Authority  on  said  appeal  shall 
be  final,  subject  only  to  appeal  to  the  President  or  his  duly  authorized 
representative. 

Sec.  7.  In  addition  to  the  information  required  to  be  submitted 
to  the  Code  Authority,  there  shall  be  furnished  to  government  agen- 
cies such  statistical  information  as  the  Administrator  may  deem 
necessary  for  the  purposes  recited  in  Section  3  ^a)  of  the  Act. 

Seo.  8.  Each  member  of  the  Industry  participating  in  and  shar- 
ing the  benefits  of  the  Code  and  assenting  to  liability  for  his  share 
of  the  cost  of  administering  same  shall  pay  to  the  Code  Authority 
or  to  the  agent  duly  established  by  the  Code  Authority  his  reason- 
able share  of  the  expenses  of  the  Code  administration,  such  reason- 
able share  of  said  expenses  to  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  just  or  equitable. 

Sec.  9.  Nothing  contained  in  this  Code  shall  constitute  the  mem- 
bers of  the  Code  Authority  partners  for  any  purpose.  Nor  shall 
any  member  of  the  Code  Authority  be  liable  in  any  manner  to  any- 
one for  any  act  of  any  other  member,  officer ^  agent,  or  employee  of 
the  Code  Authority  exercising  reasonable  diligence  in  the  conduct 
of  his  duties  hereunder,  nor  be  liable  to  anyone  for  any  action  or 
omission  to  act  under  the  Code,  except  for  his  own  willful  misfeas- 
ance or  nonfeasance. 

Article  V 

Section  1.  Every  employer  shall  use  a  cost-accounting  system 
which  will  conform  to  the  principles  of  and  is  at  least  as  detailed 
and  complete  as  the  uniform  and  standard  method  of  cost  account- 
ing to  be  prescribed  by  the  Code  Authority  subject  to  the  approval 
of  the  Administrator.  The  Code  Authority  shall  specify  those  items 
of  cost  determined  pursuant  to  this  Article  hereof  which  shall  be 
included  in  allowable  cost. 

Sec.  2.  (a)  No  manufacturer  of  the  Industry  shall  sell  any  product 
of  the  Industry  at  a  price  below  his  own  individual  cost.    Provided, 


445 

that  this  shall  not  apply  to  merchandise  vending  machines  sold, 
leased,  or  supplied  by  a  manufacturer  for  the  sole  purpose  of  vend- 
ing some  commodity  on  which  the  manufacturer  of  the  machine  is 
to  make  a  profit.  Provided  further,  that  any  member  of  the  Indus- 
try may  meet  the  price  competition  of  anyone  whose  costs  under  this 
Code  provision  are  lower. 

(b)  Provided  that  obsolete  patterns,  discontinued  models  or  sur- 
plus stock  may  be  sold  at  such  prices  as  are  necessary  to  effect  a  sale 
subject  to  rules  as  established  or  modified  from  time  to  time  b}'  the 
Code  Authority.  All  such  proposed  sales  must  be  reported  to  the 
Code  Authority  prior  to  making  the  sale.  Any  sale  made  under  this 
provision  which  is  made  for  the  purpose  of  evading  paragraph  (a) 
of  this  Section,  is  an  unfair  method  of  competition. 

Sec.  3.  No  provision  of  this  Code  relating  to  prices  and/or  terms 
of  selling,  shipping,  and/or  marketing  shall  apply  to  export  trade 
and/or  to  trade  and/or  to  sales  and/or  shipments  for  export  trade. 

Aeticle  VI — Trade  Practice  Rules 

For  all  purposes  of  the  Code  the  following  acts  described  in  this 
Article  shall  constitute  unfair  practices,  and  any  member  of  the 
Industry  who  shall  directly  or  indirectly,  through  any  officer,  em- 
ployee, agent,  or  representative,  knowingly  use,  employ,  or  permit 
to  be  employed  any  of  such  unfair  practices  shall  be  guiltj'  of  a 
violation  of  the  Code : 

(a)  The  intentional  misrepresentation  of  the  products  sold,  or 
the  making,  or  causing  or  permitting  to  be  made  or  published,  of 
any  false,  misleading,  or  deceptive  statements  by  way  of  advertise- 
ment, invoice,  or  otherwise,  concerning  the  size,  quantity,  character, 
and  nature  of  any  coin  operated  machine  or  kindred  products, 
bought  or  sold. 

(b)  Withholding  from,  or  inserting  in  any  invoice,  words  or 
figures  wliich  make  or  tend  to  make  such  invoice  a  false  record, 
wholly  or  in  part,  of  the  transaction  represented  on  the  face  thereof, 
and  of  the  secret  payment  or  allowances  of  rebates,  refunds,  credits, 
unearned  discounts,  whether  in  the  form  of  monev  or  otherwise. 

(c)  The  making  of,  or  causing  or  permitting  to  be  made,  any 
false  or  deceptive  statements,  either  written  or  oral,  concerning  in- 
stallations or  sales  previously  made,  or  the  claiming  by  any  manu- 
facturer that  equipment  actually  supplied  and  installed  by  others 
was  supi^lied  and  installed  by  him,  or  the  making  of  any  other 
misleading  or  deceptive  statements. 

(d)  To  imitate  or  simulate  the  trade  mark,  trade  name,  package, 
wrapper,  or  label  of  a  competitor's  product  to  such  a  degree  as  to 
deceive  or  have  a  tendency  to  deceive  customers. 

(e)  Inducing  or  attempting  to  induce,  by  any  means  or  device 
whatsoever,  a  breach  of  contract  between  a  competitor  and  a  cus- 
tomer during  the  term  of  such  contract. 

(f)  The  copying  or  imitation  of  the  design  or  construction  of  a 
machine  or  device  containing  new  or  novel  features  or  any  material 
parts  thereof,  in  which  the  owner  or  manufacturer  has  propert}' 
rights,  which  can  be  protected  by  legal  proceedings,  by  competitors 


446 

for  their  own  use  prior  to  the  end  of  the  year  following  that  in 
which  they  were  originated. 

(g)  Securing  information  from  competitors  concerning  their  busi- 
nesses by  false  or  misleading  statements  or  representations,  or  by 
^alse  impersonation  of  one  in  authority,  and  the  wrongful  use  thereof 
to  unduly  hinder  or  stifle  the  competition  of  such  competitors. 

Article  VII 

Section  1.  This  Code  and  all  the  provisions  thereof  are  expressly 
made  subject  to  the  right  of  the  President,  in  accordance  with  Section 
10  (b)  of  Title  I  of  the  National  Industrial  Kecovery  Act,  from  time 
to  tmie  to  cancel  or  modify  any  order,  approval,  license,  rule,  or  regu- 
lation issued  under  Title  I  of  said  Act. 

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  Admin- 
istrator and  such  notice  and  hearing  as  he  shall  specify,  and  to  be- 
come effective  on  approval  by  the  President. 

Article  VIII 

If  any  employer  of  labor  in  this  Industry  is  also  an  employer  of 
labor  in  any  other  Industry,  the  provisions  of  this  Code  shall  apply 
to  and  affect  only  that  part  of  the  business  which  is  a  part  of  the 
Coin  Operated  Machine  Manufacturing  Industry. 

Article  IX 

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 

This  Code  shall  become  effective  on  the  tenth  day  after  its  ap- 
proval by  the  President. 

Approved  Code  No.  228. 
Registry  No.  1334-01. 

o 


Approved  Code  No.  229 

CODE  OF  FAIR  COMPETITION 

FOR  THE 

VENETIAN  BLIND  INDUSTRY 

As  Approved  on  January  24,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR   THE 

VENETIAN  BLIND  INDUSTRY 

An  application  having  been  duly  made  pursuant  to  and  in  full 
compliance  vrith  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  Venetian  Blind  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 
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  nereby  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  Admirustrator. 

Washington,  D.C, 

January  24^  1934. 

85565° 313-127 34  (447) 


The  President, 

The  White  House. 
Sir:  This  is  a  report  on  the  Code  of  Fair  Competition  for  the 
Venetian  Blind  Industry  in  the  United  States,  as  revised  after  the 
hearing  conducted  in  Washington  on  November  27,  1933,  in  accord- 
ance with  the  provisions  of  the  National  Industrial  Recovery  Act. 

Provisions  or  the  Code  as  to  Hours,  Wages,  and  General  Labor 

Provisions 

This  Code  provides  for  a  maximum  work  week  of  forty  hours 
averaged  over  a  period  of  twelve  weeks  and  a  maximum  of  forty- 
eight  hours  in  any  one  week,  except  as  follows : 

(a)  Office,  accounting,  and  clerical  employees  who  shall  not  be 
permitted  to  work  in  excess  of  forty  hours  averaged  over  a  period 
of  four  weeks  or  forty-six  hours  in  any  one  week ; 

(b)  Engineers,  firemen,  and  watchmen  who  shall  be  permitted 
to  work  not  in  excess  of  eighty-four  hours  in  any  two  weeks; 

(c)  Managerial,  executive,  or  supervisory  emploj^ees  receiving  not 
less  than  $35.00  per  week  and  employees  engaged  in  emergency 
maintenance  and  emergency  repair  work  involving  breakdowns  or 
protection  of  life  or  property. 

This  Code  establishes  minimmn  rates  of  pay  of  thirty-five  cents 
per  hour  for  male  employees  and  thirty-two  and  one-half  cents  an 
hour  for  female  employees,  regardless  of  whether  the  compensation 
is  on  a  time-rate,  piece-rate,  or  other  basis;  provided,  however,  that 
female  employees  performing  substantially  the  same  work  as  male 
employees  shall  receive  the  same  rate  of  pay  and  that  where  women 
displace  men  they  shall  receive  the  same  rate  of  earnings  as  the 
men  they  displace. 

Provision  is  made  for  equitable  adjustment  of  wages  above  the 
minimum  and  for  overtime  for  all  hours  worked  in  excess  of  forty 
hours  per  week.  No  person  under  sixteen  years  of  age  shall  be 
employed  in  this  Industry  and  no  person  under  eighteen  years  of 
age  shall  be  employed  in  hazardous  occupations. 

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 
declined  from  $3,000,000  in  1929  to  $1,100,000  estimated  for  1933,  a 
decrease  of  approximately  sixty-three  per  cent. 

Lack  of  accurate  data  as  to  wages  and  number  of  employees  in 
the  Industry  prevents  a  forecast  of  the  economic  effect  of  the  Code. 
However,  the  minimum  wage  rates  and  the  maximum  hour  provi- 
sions established  by  this  Code  should  increase  the  purchasing  power 
of  the  employees  of  the  Industry. 

(448) 


449 

Findings 

The  Deputy  Administrator  in  his  final  report  to  me  on  said  Code 
having  found  as  herein  set  forth  and  on  tlie  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  reducing  and  relieving  unemployment,  by  improving 
standards  of  labor,  and  by  otherwise  rehabilitating  industry. 

(b)  Said  Industry  normally  employs  not  more  than  50,000 
employees;  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 
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, 

Hugh  S.  Johnson, 

A  dimnistrator. 
January  24,  1934. 


CODE  OF  FAIR  COMPETITION 

FOR  THE 

VENETIAN  BLIND  INDUSTRY 

Article  I — Purposes 

To  affect  the  policies  of  Title  I  of  the  National  Industrial  Recovery 
Act,  the  following  provisions  are  established  as  a  Code  of  Fair  Com- 
petition for  the  Venetian  Blind  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.  The  term  "Venetian  Blind  Industry"  or  "industry" 
as  used  herein  is  defined  to  mean  and  include  the  manufacturing, 
and  the  selling,  installing,  repairing,  and  servicing  by  the  manufac- 
turers, of  Venetian  Blinds.  The  term  "  Venetian  Blind  "  is  defined 
as  any  covering  for  a  window,  skylight,  transom,  or  glass  door  which 
is  made  up  of  slats  spaced  an  equal  distance  apart,  strung  on  tapes, 
and  either  fixed  or  capable  of  being  raised,  lowered,  or  tilted  by 
means  of  cords  or  other  devices,  said  product  being  designed  to  regu- 
late and  deflect  sunlight  without  loss  of  ventilation. 

Sec.  2.  The  term  "  member  of  the  industry  "  includes  any  indi- 
vidual, partnership,  association,  corporation,  or  other  person  or 
form  of  enterprise  engaged  in  the  industry,  either  as  an  employer  or 
on  his  own  behalf. 

Sec.  3.  The  term  "  employee  "  as  used  herein  includes  any  and  all 
persons  engaged  in  the  industry  except  a  member  of  the  industry, 
however  compensated. 

Sec.  4.  The  term  "Association  "  means  the  "  National  Venetian 
Blind  Association." 

Sec.  5.  The  term  "Act "  and  "Administrator  "  as  used  herein  shall 
mean,  respectively.  Title  I  of  the  National  Industrial  Recovery  Act 
and  the  Administrator  for  Industrial  Recovery. 

Sec.  6.  Population  for  the  purposes  of  this  Code  shall  be  de- 
termined by  reference  to  the  latest  Federal  census. 

Article  III — Hours 

Section  1.  Maximum  Hours. — No  employee  shall  be  permitted  to 
work  in  excess  of  forty  (40)  hours  per  week  averaged  over  a  period 
of  twelve  (12)  weeks,  or  eight  (8)  hours  in  any  day  in  such  period 

(450) 


451 

or  forty-eight  (48)  hours  in  any  week,  except  as  herein  otherwise 
specified,  provided  tliat  all  hours  worked  in  excess  of  forty  (40) 
hours  in  any  week  shall  be  compensated  for  at  the  rate  of  time  and 
one  half. 

Sec.  2.  Hours  for  Clerical  and  Office  Employees. — No  employee 
engaged  in  office,  accounting  and/or  clerical  work  shall  be  permitted 
to  work  in  excess  of  forty  (40)  hours  per  week  averaged  over  a 
period  of  four  (4)  weeks,  or  forty-six  (46)  hours  in  any  week  or 
nine  (9)  hours  in  any  day  in  such  four  (4)  week  period,  provided 
that  all  hours  in  excess  of  forty  (40)  worked  in  any  week  shall  be 
compensated  for  at  the  rate  of  time  and  one  half. 

Sec.  3.  Hours  for  Engineers^  Fire-jncn,  and  W atchmen. — The  pro- 
visions of  Section  1  of  the  Article  shall  not  apply  to  engineers,  fire- 
men, or  watchmen  employed  at  any  employer's  plant  or  plants  who 
may  be  permitted  to  work  not  in  excess  of  eighty-four  (84)  hours 
in  any  two  (2)  weeks,  or  in  excess  of  forty-eight  (48)  hours  in  any 
one  (1)  week. 

Sec.  4.  Exceptions  as  to  Hours. — The  limitations  provided  in  Sec- 
tions 1  to  3  inclusive  of  this  Article  shall  not  apply  to : 

(a)  persons  employed  in  a  managerial,  executive  or  supervisory 
capacity  who  earn  not  less  than  thirty-five  ($35.00)  dollars  per  week 
or  to  traveling  salesmen;  or  to 

(b)  employees  on  emergency  maintenance  or  emergency  repair 
work  involving  breakdowns  or  protection  of  life  or  property,  pro- 
vided that  such  employees  shall  receive  time  and  one  half  for  all 
hours  worked  in  excess  of  forty  (40)  hours  in  any  week  or  eight  (8) 
hours  in  any  one  day. 

Sec.  5.  Employment  hy  Several  Employers. — No  employer  shall 
knowingly  engage  any  employee  for  any  time  which  when  totaled 
with  that  already  performed  with  another  employer,  or  employers, 
in  this  industry  exceeds  the  maximum  permitted  herein. 

Article  IV — Wages 

Section  1.  Minimum  Wages. — Except  as  herein  otherwise  pro- 
vided, no  male  employee  shall  be  paid  less  than  at  the  rate  of 
thirty-five  cents  (350)  per  hour  and  no  female  employee  less  than 
thirty-two  and  one  half  cents  (321/2^)  per  hour.  Female  employees 
performing  substantially  the  same  work  as  male  employees  shall 
receive  the  same  rate  of  pay  as  male  employees;  and  where  they 
displace  men,  they  shall  receive  the  same  rate  of  earnings  as  the 
men  they  displace.  The  Code  Authority  shall  within  ninety  (90) 
days  after  the  effective  date  of  this  Code  file  with  the  Adminis- 
trator a  description  of  all  occupations  in  the  Industry  in  which  both 
men  and  women  are  employed  and  also  in  which  women  are  exclu- 
sively employed. 

Sec.  2.  No  clerical  or  office  employee  shall  be  paid  in  any  pay  pe- 
riod less  than  at  the  rate  of  fifteen  ($15.00)  dollars  per  week  in  any 
city  of  500,000  population  or  over,  or  in  the  immediate  trade  area 
of  such  city;  or  less  than  at  the  rate  of  fourteen  dollars  and  fifty 
cents  ($14.50)  per  week  in  any  city  of  between  250,000  and  500,000 
population  or  in  the  immediate  trade  area  of  such  city;  or  less  than 


452 

at  the  rate  of  fourteen  ($14.00)  dollars  per  week  in  any  city  or  town 
of  250,000  or  less  population. 

Sec.  3.  Office  boys  or  office  girls  shall  be  paid  not  less  than  twelve 
($12.00)  dollars  per  week;  provided,  however,  that  the  total  number 
of  all  such  employees  employed  by  any  one  employer  shall  not  exceed 
in  any  calendar  month  five  percent  (5%)  of  the  total  number  of  all 
employees  classified  as  clerical  or  office  employees.  Irrespective  of 
this  percentage  each  employer  may  retain  at  least  one  such  office  boy 
or  girl. 

Sec.  4.  Handicapped  Persons. — A  person  whose  earning  capacity 
is  limited  because  of  age  or  physical  or  mental  handicap  may  be 
employed  on  light  work  at  a  wage  below  the  minimum  established 
by  this  Code  if  the  employer  obtains  from  the  State  authority  desig- 
nated by  the  United  States  Department  of  Labor  a  certificate  au- 
thorizing his  employment  at  such  wages  as  shall  be  stated  in  the 
certificate.  Each  employer  shall  file  with  the  Code  Authority  a  list 
of  all  such  pereons  employed  by  him.  The  State  Authority  shall  be 
guided  by  the  instructions  of  the  United  States  Department  of  Labor 
in  issuing  certificates  to  such  persons. 

Sec.  5.  Piecework  C ompensation — Minimuni  Wages. — This  article 
establishes  a  minimum  compensation  which  shall  apply  irrespective 
of  whether  an  employee  is  actually  compensated  on  a  time-rate, 
piece-work,  or  other  basis. 

Sec.  6.  Wages  Above  Minimum. — Employers  shall  not  reduce  the 
rates  of  wages  for  employees  whose  rates  are  now  in  excess  of  the 
minimum  rate  of  wages  herein  provided  (notwithstanding  that  the 
number  of  hours  worked  in  such  employment  may  be  hereby  de- 
creased), and  where  in  any  case  an  employer  has  not  increased  the 
rates  of  wages  for  such  employees  prior  to  the  effective  date  of  this 
Code  by  an  equitable  readjustment  of  all  wage  rates  such  employer 
shall  readjust  all  such  wage  rates.  All  such  adjustments  made  shall 
be  reported  by  the  Code  Authority  to  the  Administrator  for  his 
approval  within  sixty  (60)  days  from  effective  date  of  this  Code. 
This  provision  shall  be  interpreted  in  the  same  manner  that  para- 
graph seven  (7)  of  the  President's  Reemployment  Agreement  has 
been  interpreted  by  the  Administrator  in  Interpretations  Nos.  1 
and  20. 

Sec.  7.  Payment  of  Wages. — All  employers  shall  make  payment  of 
all  wages  due  in  lawful  currency  or  by  negotiable  check  therefor  pay- 
able on  demand.  Wages  shall  be  paid  at  the  end  of  each  weekly 
period.  These  wages  shall  be  exempt  from  any  payment  for  pen- 
sions, insurance,  or  sick  benefits  other  than  those  voluntarily  paid 
by  employees.  Employers  or  their  agents  shall  not  accept,  directly, 
or  indirectly,  rebates  on  such  wages  or  give  anything  of  value  or 
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  capacity  who  earn  not  less  than  thirtj^-five 
dollars  ($35.00)  per  week,  nor  to  any  persons  employed  in  clerical 
or  office  work,  who  shall  be  paid  at  the  end  of  pay  periods  not  to 
exceed  bimonthly  periods. 


453 

Article  V — General  Labor  Proxtsions 

Section  1.  Child  Labor. — No  person  under  sixteen  (16)  years  oi 
age  shall  be  employed  in  the  Industry  and  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  Coclo 
Authority  shall  submit  to  the  Administrator  before  March  1,  1934, 
a  list  of  such  operations  or  occupations.  In  any  State  an  employer 
shall  be  deemed  to  have  complied  with  this  provision  if  he  shall 
have  on  file  a  certificate  duly  issued  by  the  authority  in  such  State 
empowered  to  issue  emplovment  or  age  certificates  or  permits  show- 
ing that  the  employee  is  of  the  required  age. 

Sec  2.  Provisions  fro^n  the  Act. — In  compliance  with  Section  7  (a) 
of  the  Act  it  is  provided  that : 

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

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

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

Sec.  3.  Reclassi-ficution  of  Employees. — No  employer  shall  re- 
classify employees  or  duties  of  occupations  performed  or  engage  in 
any  other  subterfuge  for  the  purpose  of  defeating  the  provisions  of 
the  Act  or  of  this  Code. 

Sec.  4.  Standards  for  Safety  and  Health. — Every  employer  shall 
make  reasonable  provision  for  the  safety  and  health  of  his  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.  5.  State  Laws. — No  provisions  in  this  Code  shall  supersede 
any  State  or  Federal  law  which  imposes  more  stringent  requirements 
on  employers  as  to  the  age  of  employees,  wages,  hours  of  work,  or 
as  to  safety,  health,  or  sanitary  conditions,  or  insurance,  or  fire  pro- 
tection, or  general  working  conditions,  than  are  imposed  by  this 
Code. 

Sec.  6.  Posting. — All  employers  shall  post  complete  copies  of  this 
Code  in  conspicuous  places  accessible  to  employees. 

Sec.  7.  An  employee  shall  be  paid  at  least  his  normal  rate  of  pay 
for  all  time  required  to  be  spent  at  the  place  of  employment  or  in 
connection  with  the  discharge  of  duties  of  such  employment. 


454 

« 

Article  VI — Organization,  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, 
eligible  under  the  provisions  of  Section  8  of  this  Article,  five  (5)  of 
whom  may  be  members  of  the  Association  and  one  (1)  of  whom 
shall  be  a  nonmember  of  the  Association,  if  any,  all  six  (6)  of  whom 
shall  be  elected  by  majority  vote  of  members  of  the  Industry  par- 
ticipating in  the  elections  provided  for  in  Section  3  of  this  Article. 

Sec.  3.  The  Association  is  hereby  designated  as  the  agency  to 
conduct  an  election  of  the  members  of  the  Code  Authority  within 
fifteen  (15)  days  after  the  effective  date  of  this  Code,  and  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  a  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  member  shall  be  called  and  held  within  thirty  (30)  days. 
Notice  of  the  time  and  place  of  each  election  shall  be  sent  by  regis- 
tered mail  to  all  members  of  the  Industry  known  to  the  Association^ 
whether  by  virtue  of  registration  as  provided  in  Article  XII  hereof, 
or  otherwise,  at  least  ten  days  in  advance  of  such  election,  and 
voting  at  such  election  may  be  by  person,  by  proxy,  or  by  letter 
ballot.     Each  member  of  the  Industry  shall  have  one  (1)  vote. 

Sec.  4.  In  addition  to  membership  as  above  provided,  there  may  be 
three  (3)  members,  without  vote,  to  be  appointed  by  the  Adminis- 
trator, to  serve  without  expense  to  the  Industry  for  terms  of  from 
six  (6)  months  to  one  (1)  year  so  arranged  that  the  terms  do  not 
expire  at  the  same  time. 

Sec.  5.  The  representatives  who  may  be  appointed  by  the  Adminis- 
trator together  with  the  Administrator  shall  be  given  notice  of  and 
may  sit  at  all  meetings  of  the  Code  Authorit3^ 

Sec.  6.  The  Association  shall  (1)  impose  no  inequitable  restric- 
tions on  membership,  and  (2)  submit  to  the  Administrator  true  copies 
of  its  articles  of  association,  bylaws,  regulations,  and  any  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.  7.  In  order  that  the  Code  Authority  shall  at  all  times  be  truly 
representative  of  the  Industry  and  in  other  respects  comply  with  the 
provisions  of  the  Act,  the  Administrator  may  prescribe  such  hearings 
as  he  may  deem  proper ;  and  thereafter  if  he  shall  find  that  the  Code 
Authority  is  not  truly  representative  or  does  not  in  other  respects 
comply  with  the  provisions  of  the  Act,  may  require  an  appropriate 
modification  in  the  method  of  selection  of  the  Code  Authority, 

Sec.  8.  Members  of  the  Industry  shall  be  entitled  to  participate 
in  and  share  the  benefits  of  the  activities  of  the  Code  Authority  and 
to  participate  in  the  selection  of  the  members  thereof  by  assenting 
to  and  complying  with  the  requirements  of  this  Code  and  sustaining 


455 

their  reasonable  share  of  the  expenses  of  its  administration.  Such 
reasonable  share  of  the  expenses  of  administration  shall  be  de- 
termined by  the  Code  Authority,  subject  to  review  by  the  Adminis- 
trator, on  the  basis  of  volume  of  business  and/or  such  other  factors 
as  may  be  deemed  equitable. 

Sec.  9,  Nothing  contained  in  this  Code  shall  constitute  the  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  oi  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  wilful  misfeasance  or  nonfeasance. 

Sec.  10.  Povyers  and  DiUies. — The  Code  Authority  shall  have  the 
following  further  powers  and  duties  to  the  extent  permitted  by 
the  Act: 

(a)  To  execute  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.  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  the  Association  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  or 
its  duties  or  responsibilities  under  this  Code  and  that  such  Asso- 
ciation 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  related  to  the  Industry. 

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

(g)  To  cooperate  with  the  Administrator  in  regulating  the  use 
of  any  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. 

Sec.  11.  If  the  Administrator  shall  determine  that  any  action  of 
the  Code  Authority  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  days  to 
afford  an  opportunity  for  investigation  of  the  merits  of  such  action 
and  further  consideration  by  the  Code  Authority  or  agency  pending 
final  action,  which  shall  be  taken  only  upon  approval  by  the 
Administrator. 


456 
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 
representative,  knowingly  use,  employ,  or  permit  to  be  employed 
any  of  such  unfair  practices  shall  be  guilty  of  a  violation  of  the 
Code. 

Rule  1. — No  member  of  the  Industry  shall  use  advertising 
(whether  printed,  radio,  display,  or  of  any  other  nature)  or  other 
representation  which  is  inaccurate  in  any  material  particular  or  in 
any  way  misrepresent  any  commodity  (including  its  use,  trade  mark, 
grade,  quality,  quantity,  origin,  size,  material  content,  or  prepara- 
tion) or  credit  terms,  value,  policies,  services,  or  the  nature  or  form 
of  the  business  conducted. 

Rule  2. — No  member  of  the  Industry  shall  use  advertising  or  sell- 
ing methods  or  credit  terms  which  tend  to  deceive  or  mislead  the 
customer  or  prospective  customer. 

Rule  3. — No  member  of  the  Industry  shall  withhold  from  or  insert 
in  any  quotation  or  invoice  any  statement  that  makes  it  inaccurate  in 
any  material  particular. 

Rule  1^.. — 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,  ori- 
gin, size,  material  content,  or  preparation  of  such  commodity. 

Rule  6. — No  member  of  the  Industry  shall  use  advertising  or  make 
any  other  representation  which  refers  inaccurately  in  any  material 
particular  to  any  competitors  or  their  commodities,  prices,  values, 
credit  terms,  policies,  or  services. 

Rule  6. — No  member  of  the  Industry  shall  sell  below  his  cost,  as 
determined  by  standard  methods  hereinafter  provided  in  this  Rule 
6,  except  to  meet  the  lower  price  of  a  competing  member  of  the 
Industry  whose  costs  are  lower  as  determined  by  such  standard 
methods.  This  Rule  shall  not  be  construed  as  granting  an  exception 
in  any  case  to  the  procedure  provided  in  Article  VIII  concerning 
publicity  of  prices,  terms,  and  conditions  of  sale. 

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 
approval  of  such  methods  or  systems  by  the  Administrator,  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  sys- 
tem 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  approved  by  the  Administrator. 


457 

Rule  7. — 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. 

Rvie  8. — No  member  of  the  Industry  shall  secretly  offer  or  make 
any  payment  or  allowance  of  a  rebate,  refund,  conmiission,  credit, 
unearned  discount,  or  excess  allowance,  whether  in  the  form  of 
money  or  otherwise,  for  the  purpose  of  influencing  a  sale,  nor  shall 
a  member  secretly  extend  to  any  customer  any  special  service  or 
privilege  not  extended  to  all  customers  of  the  same  class. 

Bule  9. — No  member  of  the  Industry  shall  ship  commodities  on 
consignment  except  under  contract  or  bona  fide  orders. 

Rule  10. — No  member  of  the  Industry  shall  give,  permit  to  be 
given,  or  directly  offer  to  give,  anything  of  value  for  the  purpose  of 
influencin,g  or  rewarding  the  action  of  any  employee,  agent,  or 
representative  of  another  in  relation  to  the  business  of  the  employer 
of  such  emploj^ee,  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  adver- 
tising except  so  far  as  such  articles  are  actually  used  for  commercial 
bribery  as  hereinabove  defined. 

Rule  11. — No  member  of  the  Industry  shall  knowingly  attempt 
to  induce  the  breach  of  an  existing  contract  between  a  competitor 
and  his  emploj-ee  or  customer  or  source  of  supply;  nor  shall  any 
such  member  interfere  with  or  obstruct  the  performance  of  such 
contractual  duties  or  services. 

Rule  12. — No  member  of  the  Industry  shall  repudiate  a  contract 
entered  into  in  good  faith  when  the  purpose  of  such  repudiation 
is  to  create  for  such  member  an  unfair  price  advantage. 

Rule  13. — No  member  of  the  Industry  shall  combine  quotations  for 
any  product  of  this  Industry  with  any  quotation  for  any  other  ma- 
terial, labor,  or  service,  for  the  purpose  and  with  the  intent  of  con- 
cealing the  true  selling  price  of  the  products  of  this  Industry. 

Rule  14. — No  member  of  the  Industry  shall  guarantee  against  price 
decline  except  as  the  same  may  be  limited  to  the  decline  in  his  own 
prices,  and  such  guarantee  shall  then  apply  only  to  goods  contracted 
for  but  not  delivered. 

Rule  15. — No  guarantee  of  products  of  the  Industry  shall  cover 
damages  for  other  than  those  due  to  defective  material  and  work- 
manship and  no  such  guarantee  shall  exceed  ninety  (90)  days  from 
dat«  of  delivery.  This  provision  shall  not  supersede  any  implied 
warranties. 

Article  VIII — Publicity  of  Prices,  Terms,  and  Conditions  or  Sale 

Section  1.  Within  fifteen  (15)  days  after  the  effective  date  of  this 
Code  each  member  of  the  Industry  shall  publish  his  prices,  terms, 
and  conditions  of  sale  on  all  standard  products  to  his  trade,  such 
class  of  trade  being  furnished  with  the  prices,  terms,  and  conditions 
of  sale  affecting  each  such  class  of  trade.  Coincident  with  such  pub- 
lication, each  member  of  the  Industry  shall  file  with  the  Code  Au- 
thority, and  the  Code  Authority  shall  immediately  distribute  to  all 


458 

members  of  the  Industry,  a  complete  schedule  of  such  prices,  terms, 
and  conditions  of  sale. 

Sec.  2.  In  the  event  of  any  change  by  any  member  of  the  Industry 
in  any  price,  term,  or  condition  of  sale,  he  shall  file  full  and  complete 
copies  of  every  such  change  with  the  Code  Authority  within  such 
periods  as  may  have  been  designated  by  the  Code  Authority  but  not 
exceeding  seven  (7)  days  in  advance  of  the  effective  date  of  any  such 
change.  Copies  thereof  shall  be  immediately  distributed  by  the 
Code  Authority  to  the  members  of  the  Industry.  On  the  effective 
date  of  any  such  change,  the  Industr}^  member  shall  publish  the  same 
to  the  trade  concerned. 

Sec.  3.  No  member  of  the  Industry  shall  sell,  pay  a  rebate,  or  allow 
a  deduction  at  any  time  to  any  person  except  in  accordance  with  his 
prices,  terms,  and  conditions  of  sale  then  in  effect  and  published  in 
the  manner  described  herein,  except  that  changes  made  to  meet  any 
competitive  reductions  may  be  made  effective  on  or  at  any  time  after 
the  date  such  competitive  reductions  become  effective.  Each  member 
of  the  Industry  shall  have  the  right,  individually,  to  publish  new 
prices,  terms,  and  conditions  of  sale,  from  time  to  time,  as  herein 
provided. 

Article  IX — Modification 

Section  1.  This  code  and  all  the  provisions  thereof  are  expressly 
made  subject  to  the  right  of  the  President,  in  accordance  with  the 
provisions  of  subsection  (b)  of  Section  10  of  the  National  Indus- 
trial Recovery  Act,  from  time  to  time  to  cancel  or  modify  any  order, 
approval,  license,  rule,  or  regulation  issued  under  Title  I  of  said 
Act  and  specifically,  but  without  limitation,  to  the  right  of  the 
President  to  cancel  or  modify  his  approval  of  this  Code  or  any  con- 
ditions imposed  by  him  upon  his  approval  thereof. 

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  his  approval.  Any  such  application  may  be  made 
by  the  Code  Authority. 

Article  X — Monopolies,  Etc. 

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

Article  XI — Reports 

In  addition  to  the  information  required  to  be  submitted  to  the 
Code  Authority,  members  of  the  Industry  shall  furnish  to  the  Ad- 
ministrator such  statistical  information  as  may  be  deemed  necessary 
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  rej)orts  to  government  agencies. 


459 
Article  XII — Registration  of  Members  of  the  Industry 

Each  member  of  the  Industry  shall,  within  thirty  (30)  days  after 
the  effective  date  of  this  Code,  register  with  the  Code  Authority.  All 
members  of  the  Industry  who  may  engage  in  the  Industry  thereafter 
shall  likewise  register  with  the  Code  Authority. 

Registration  of  a  member  of  the  Industry  shall  include  the  full 
name  and  mailing  address  of  the  member.  The  time  limit  for  the 
registration  by  any  member  of  the  Industry  may  be  extended  when- 
ever, in  the  opinion  of  the  Administrator,  the  time  limit  as  provided 
herein  might  cause  an  injustice  to  any  member  of  the  Industry. 

Article  XIII— Effective  Date 

This  Code  shall  become  effective  on  the  second  Monday  after  its 
approval  by  the  President. 


Approved  Ck)de  No.  229. 
Registry  No.  1G29-05. 


O 


Approved  Code  No.  230 
CODE  OF  FAIR  COMPETITION 

FOR  THE 

PAPER  BAG   MANUFACTURING   INDUSTRY 

As  Approved  on  January  26,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

PAPER  BAG  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  Paper  Bag  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 
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  Indvsfrial  Recovery. 

Approval  recommended : 
George  L.  Berry, 

Division  Administrator. 
Washington,  D.C, 

January  26, 1934' 

33300° 313-79 34  (461) 


The  President, 

The  White  House. 
Sir:  This  is  a  report  of  the  hearing  on  the  Code  of  Fair  Competi- 
tion for  the  Paper  Bag  Manufacturing  Industry,  conducted  in  "Wash- 
ington on  November  2,  1933,  in  accordance  with  the  provisions  of 
Title  I  of  the  National  Industrial  Recovery  Act. 

HOURS  AND  AVAGES 

For  factory  workers,  this  Code  provides  a  forty-hour  we;'k  averaged 
over  thirteen  weeks,  but  not  more  than  forty-eight  hours  in  any  one 
week,  with  overtime  payment  for  hours  worked  in  excess  of  eight 
per  day.  For  office  workers,  the  Code  specifies  a  forty-hour  week 
averaged  over  one  year  and  an  average  of  not  more  than  forty-eight 
hours  per  week  in  any  period  of  thirteen  weeks.  Slightly  longer 
hours  are  permitted  for  additional  nonproductive  emploj'ees. 

The  minimum  wage  for  factory  workers  in  the  Northern  and 
Central  zones  are  38  and  35  cents  per  hour  respectively  for  males, 
with  a  o-cent  differential  for  female  workers  in  each  case.  In  the 
Southern  zone  the  minimum  wage  for  this  class  is  30  cents  for  both 
men  and  women.  Provision  is  made  that  men  and  women  doing 
the  same  work  shall  receive  the  same  pay.  An  exception  is  made  oi 
work  which  on  July  15,  1929,  paid  less  than  the  prescribed  rates. 
In  such  cases  the  1929  rate,  or  ninety  percent  of  the  basic  Code  rate, 
whichever  is  higher,  is  prescribed.  The  minimum  wages  of  office 
workers  range  from  $12.00  to  $15.00  per  week,  as  in  the  President's 
Reeni})loyment  Agreement. 

This  induvstry  is  closely  allied  with  the  Paper  and  Pulp  Industry, 
and  about  60  percent  of  the  total  production  of  bags  is  carried  on  in 
plants  which  manufacture  their  own  paper.  For  this  reason,  this 
Code  prescribes  the  same  minimum  wages  and  maximum  hours  as 
the  Paper  and  Pulp  Code.  Provision  is  made  that  when  a  rehear- 
ing is  held  on  the  Paper  and  Pulp  Code,  as  directed  in  your  Execu- 
tive Order  of  November  17,  1933,  approving  said  Code,  the  wage 
and  hour  provisions  of  the  Paper  and  Pulp  Code,  as  determined 
after  such  rehearing,  shall  apply  to  this  Industry. 

OTHER  CODE  PROAaSIONS 

Nine  divisions  of  this  Industry  are  established  under  subordinate 
Codes.  Provisions  are  made  for  an  open  price  plan,  for  the  filing  of 
reports  with  the  Administrator  and  for  a  cost  accounting  system 
which  will  equalize  the  differential  in  transportation  costs  between 
self-contained  and  converting  mills.  Trade  practices  are  established 
for  the  Industr3^ 

ECONOMIC  EFFECT  OF  THE  CODE 

In  1929  the  Paper  Bag  Manufacturing  Industry  employed  about 
3,600  workers.     In  May  1933  employment  had  increased  to  about 

(4tJ2) 


4G3 

23  percent  over  the  1929  level  as  a  result  of  increased  production. 
Under  the  President's  Keeniploynient  Agreement,  the  total  ^vas 
raised  46  percent  over  the  1929  fi<i;ure.  The  effect  of  the  hour  limi- 
tations of  this  Code  ^vill  be  to  give  emi)U)yment  to  about  5  percent 
more  workers,  bringing  the  total  for  the  industi-y  to  more  tlian  G,000. 
The  increase  in  employment  under  the  President's  Reemployment 
Agreement  has  already  brought  about  increases  in  pay  rolls,  so  that 
the  wage  provisions  of  this  Code  will  add  only  about  5  percent  to 
present  pay  rolls.  Compared  with  annual  pay  rolls  as  of  April  1933, 
however,  the  increases  under  the  Code  will  be  about  $922,500 
annually. 

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  ])y  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  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 
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  otherw^ise  rehabilitating  industry. 

(b)  Said  Industry  normally  employs  not  more  than  50,000  em- 
ploj-ees.  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  Title  I  of  the  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  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. 

For  these  reasons  this  Code  has  been  approved. 
Respectfully, 

Hugh  S.  Johxson, 

Administrator. 
Januaky  26, 1934. 


CODE  OF  FAIR  COMPETITION 

FOR   THE 

PAPER  BAG  MANUFACTURING  INDUSTRY 

To  effectuate  the  policy  of  Title  I  of  the  National  Industrial 
Recovery  Act,  the  following  is  hereby  established  as  a  Code  of  Fair 
Competition  for  the  Paper  Bag  Manufacturing  Industry  and  shall 
be  binding  on  every  member  thereof. 

Article  I — Definitions 


The  following  words  are  used  in  this  Code  and  in  all  Codes 
Fubordinate  hereto  with  the  meanings  herein  set  forth: 

Industry. — The  manufacture  of  all  pasted  open  mouth  bags  and 
sacks  from  paper,  except  shipping  sacks  as  defined  in  the  subordinate 
Code  for  the  Paper  Shipping  Sack  Division  of  the  Paper  and  Pulp 
Industry  approved  November  17,  1933. 

Member. — A  natural  person,  partnership,  corporation,  association, 
trust,  trustee,  trustee  in  bankruptcy,  or  receiver  engaged  in  such 
industr}^ 

Act. — Title  I  of  the  National  Industrial  Recovery  Act. 

Ad'ministrato7\ — The  National  Industrial  Recovery  Administrator. 

Division. — ^A  division  or  section  of  the  Industry  recognized  as 
such  by  this  Code. 

Article  II — Organization  and  Administration 

1.  A  Board  consisting  of  the  Chairman  of  the  Executive  Authority, 
of  each  division  of  the  Industry  as  established  by  the  respective 
divisional  Codes  pursuant  to  the  provisions  of  Section  4  of  Article 
III  hereof,  together  with  such  members  of  the  Executive  Committee 
of  the  Paper  Bag  Manufacturers  Institute  as  are  not  themselves 
Chairmen  of  such  Executive  Authorities,  is  hereby  designated  as 
the  agency  for  administering  this  Code  and  is  hereinafter  referred 
to  as  the  Code  Authority.  The  Administrator  may  designate  one 
or  more  persons  members  thereof  without  vote. 

2.  The  said  Institute  and  all  divisional  associations  hereunder 
shall  file  Avith  the  Administrator  certified  copies  of  an}^  amendments 
of  their  by-laws  relating  to  eligibility  or  admission  to  membership 
in  such  Institute  or  divisional  association,  or  relating  to  the  method 
of  selection  of  the  members  of  their  Executive  Committees,  and  of 
the  P^xecutive  Authority  of  each  division,  which  such  Institute  or 
divisional  Associations  may  hereafter  adopt. 

3.  The  Adjninistrator  may  at  any  time  prescribe  a  different 
method  for  selecting  the  Industry  members  of  the  Code  xA.uthority 

(464) 


465 

and  of  the  Executive  Authority  of  each  division,  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  and  of  the 
Executive  Authority  of  each  division  shall  be  subject  to  review  by 
the  Administrator,  and  to  suspension,  modification,  or  cancellation 
by  him  in  any  case  in  which  he  shall  determine  that  any  such  act 
violates  the  purposes  of  the  National  Industrial  Recovery  Act. 

5.  The  expense  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  the  Industry  who  accept  the  benefit  of  the  services 
of  the  Code  Authority  and/or  of  the  Executive  Authorities  of  any 
division  of  this  Industry,  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  by  any  mem- 
ber which  are  or  appear  to  be  contrary  to  the  policy  of  the  Act  or 
which  tend  or  may  tend  to  render  ineffective  this  Code  and  to  report 
the  same  with  recommendations  to  the  Administrator. 

7.  The  Industry  is  hereby  divided  into  divisions  as  set  forth  in 
Schedule  A  hereto  attached.  Any  question  as  to  the  division  into 
which  any  particular  grade,  class,  or  kind  of  bags  may  fall,  shall 
be  determined  by  the  Code  Authority. 

8.  In  the  event  that  the  jurisdiction  of  the  Code  shall  be  extended 
to  cover  the  manufacture  of  products  which  do  not  fall  within  any 
such  division,  the  Code  Authority  may  create  new  divisions  to  in- 
clude such  products  and  the  members  of  such  divisions  may  then 
adopt  and  submit  divisional  Codes  as  provided  in  Article  III  hereof. 

9.  The  Code  Authority  may  create  new  divisions  by  the  subdivi- 
sion of  any  such  divisions  or  by  the  consolidation  of  any  two  or 
more  of  such  divisions,  provided,  however,  that  no  such  subdivision 
or  consolidation  shall  be  made  without  the  consent  of  the  divisional 
association  of  each  division  affected  thereby. 

10.  In  each  division  there  may  be  one  divisional  association  to 
which  every  member  of  the  industry  engaged  in  the  manufacture 
of  any  product  included  in  such  division  shall  be  eligible  for 
membership. 

Article  III — Divisional  Codes 

1.  Each  such  divisional  association  may  adopt  a  divisional  Code 
and  may  either  submit  the  same  as  a  supplement  to  this  Code  or 
submit  the  same  subsequently  through  the  Code  Authority  to  the 
President  of  the  United  States  for  his  approval.  Such  divisional 
Codes,  when  so  approved,  shall  have  the  same  force  and  effect  as 
to  the  divisions  of  the  Industry  afi'ected  thereby  as  this  Code. 

2.  Such  divisional  Codes  shall  be  subordinate  to  this  Code  and 
shall  specifically  recognize  this  Code  as  applicable  to  all  members 
of  the  Industry  engaged  in  manufacturing  products  falling  within 
the  division  for  which  such  divisional  Code  is  submitted. 

3.  Pending  action  by  the  Code  Authorit}',  each  division  shall  in-, 
elude  such  grades,  classes,  and  kinds  of  bags  as  are  generally 
recognized  by  custom  as  falling  within  the  classifications  indicated 
by  the  name  of  such  division. 


466 

4.  Each  such  divisional  Code  shall  designate  an  agency  for  the 
purpose  of  administering  such  divisional  Code  which  shall  be  de- 
nominated "■  The  Executive  Authority  "  of  such  division. 

5.  Such  divisional  Codes  may  contain  such  provisions  relating  to 
said  division  as  may  be  appropriate  for  inclusion  in  a  Code  of 
Fair  Competition  under  the  Act,  provided  that  no  such  Code  shall 
contain  any  provision  contrary  to  or  inconsistent  with  the  provisions 
of  this  Code. 

Article  IV — Houns  or  Labor 

1.  Employees  in  the  Industry  shall  not  be  required  or  permitted 
to  work  hours  in  excess  of  the  limits  prescribed  in  the  following- 
schedules  : 

SCHEDULE  or  WORKING  HOURS 

(a)  Watchmen: 

Eight  (8)  hours  in  any  one  day  and  fifty-six  (56)  hours  in  any 
one  week. 

(b)  Chauffeurs,  truckmen,  sAvitching  creAvs,  engineers,  firemen, 
and  electric  and  hydroelectric  operators : 

One  hundred  and  sixty-eight  (168)  hours  in  any  period  of  four 
(4)  consecutiA^e  Aveeks,  but  no  more  than  ten  (10)  hours  in  any  one 
day  and  forty-eight  (48)  hours  in  any  one  week. 

(c)  All  other  laborers,  mechanical  Avorkers,  or  artisans  employed 
in  any  plant,  mill,  or  factory  or  on  Avork  connected  Avith  the  opera- 
tion of  any  such  plant,  mill,  or  factory : 

An  average  of  not  more  than  forty  (40)  hours  per  Aveek  in  any 
period  of  tliirteen  (13)  consecutiA'e  weeks,  but  not  more  than  forty- 
eight    (48)    hours  in  any  one  Aveek;  provided,  hoAAever,  that  time 
worked  in  excess  of  eight  (8)  hours  in  any  one  day  shall  be  paid  for' 
as  not  less  than  time  and  one  third. 

(d)  Executives  and  their  personal  secretaries  and  other  employees 
regularly  engaged  in  a  supervisory  capacit}^,  receiving  thirty-fiA'e 
($35)  dollars  or  more  per  AA^eek,  and  outside  salesmen: 

No  limitations. 

(e)  All  other  employees : 

An  average  of  forty  (40)  hours  per  week  in  any  calendar  year 
and  an  aA^erage  of  not  to  exceed  forty-eight  (48)  hours  per  week 
in  any  period  of  thirteen  (13)  consecutiA'e  Aveeks. 

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  iuA^ohdng 
protection  of  life  or  property. 

3.  No  employee  shall  be  permitted  to  Avork  for  two  or  more 
members  of  the  Industry  an  aggregate  number  of  hours  in  excess 
of  the  number  prescribed  in  said  Schedule. 

4.  At  such  intervals  as  the  Code  Authority  shall  prescribe,  eA^ery 
member  shall  furnish  to  the  Code  Authority  such  information  as  it 
may  require,  in  order  to  enable  it  to  determine  whether  the  limi- 
tations contained  in  said  Schedule  haAC  been  exceeded. 


467 

Article  V — Waoe8 

1.  The  minimum  rate  of  wage  of  any  laborer,  mechanical  worker, 
or  artisan  employed  in  any  plant,  mill,  or  factory,  or  on  work  con- 
nected with  the  operation  of  any  such  plant,  mill,  or  factory  shall  be 
as  follows: 

(a)  Northern  Zone,  which  shall  consist  of  all  territory  of  the 
United  States  except  the  States  named  in  subdivisions  (b)  and  (c)  : 

Male  labor:  thirty-eight  (38)  cents  per  hour. 
Female  labor:  thirty-three  (33)  cents  per  hour. 

(b)  Central  Zone,  which  shall  consist  of  the  States  of  Delaware, 
Maryland,  Virginia,  West  Virginia,  Kentucky,  Tennessee,  and  North 
Carolina,  and  the  District  of  Columbia : 

Male  labor:  thirty-five  (35)  cents  per  hour. 
Female  labor:  thirty  (30)  cents  per  hour. 

(c)  Southern  Zone,  which  shall  consist  of  the  States  of  South 
Carolina,  Georgia,  Florida,  Alabama,  ^Mississippi,  Louisiana,  Ar- 
kansas, and  Texas: 

Thirty  (30)  cents  per  hour. 

Provided,  however,  that  in  case  the  rate  per  hour  for  any  class 
of  labor  was,  on  July  15,  1929,  less  than  the  minimum  rate  above 
specified  for  the  same  class  of  labor,  then  the  minimum  rate  for  such 
class  of  labor  shall  be  the  rate  paid  on  July  15,  1929,  but  in  no 
event  less  than  ninety   (90)   percent  of  the  rate  above  specified. 

2.  The  Code  Authority  shall  obtain  statistical  data  concerning 
the  eflPect  of  the  above  proviso  on  wage  rates  in  the  Industry,  and 
shall  within  ninety  (90)  days  after  the  effective  date  of  this  Code 
make  a  report  thereon  to  the  Administrator. 

3.  Pieceworkers  shall  be  paid  at  rates  which  will  yield  a  worker 
for  an  hour's  work  not  less  than  the  minimum  rates  prescribed, 

4.  The  minimum  rates  of  wages  for  all  other  employees,  except 
commission  salesmen,  shall  be  as  follows : 

Not  less  than  $15.00  per  Aveek  in  any  city  of  over  500,000  ])opula- 
tion,  nor  less  than  $14.50  per  week  in  any  city  between  250,000  and 
500,000  population,  nor  less  than  $14.00  per  week  in  any  city  between 
2,500  and  250,000  population,  nor  less  than  $12.00  per  week  in  towns 
of  less  than  2,500  poj)ulation. 

5.  Female  emploj'ees  performing  substantialh'  the  same  work  as 
male  employees,  shall  receive  the  same  rate  of  pay  as  male  emplo3^ees. 
The  Code  Authority  shall^  within  ninety  (90)  days  after  the  effective 
date  of  this  Code,  file  with  the  Administrator  a  description  of  all 
occupations  in  the  Industry  in  which  both  men  and  women  are 
employed. 

6.  The  wage  rates  of  all  employees  receiving  more  than  the  mini- 
mum rates  herein  prescribed  shall  be  reviewed  and  such  adjustments, 
if  any,  made  therein  as  are  equitable  in  the  light  of  all  the  circmn- 
stances,  and  within  sixty  (60)  days  after  the  effective  date  hereof, 
the  Code  Authority  shall  report  to  the  Adirdnistrator  the  action 
taken  by  all  members  of  the  Industry  under  this  Section. 

Article  VI — Gener.\l  Labor  Provisions 

1.  There  shall  be  a  rehearing  by  the  Administrator  on  all  of  the 
provisions  of  Articles  IV  and  V  of  this  Code.     Such  hearing  shall 

33360  ° 310-79 34 2 


468 

be  held  at  the  ^aiiie  time  and  phicc,  and  on  the  same  notice  as 
the  hearing  for  the  purpose  of  determining  the  adequacy  of  the 
minimum  wages  established  in  the  Code  of  Fair  Competition  for 
the  Paper  and  Pulp  Industry,  directed  to  be  held  b}'  the  Executive 
Order  approving  said  Code,  dated  November  17,  1933.  In  the  event 
that  any  of  the  provisions  of  the  said  Paper  and  Pulp  Code  relating 
to  wages  and  hours  of  lalior  shall  be  amended  in  accordance  with 
recommendations  made  by  the  Administrator  and  approA'ed  bj'  the 
President  as  provided  in  such  Executive  Order,  then  and  in  that 
event  such  amended  provisions  shall  appl}^  also  to  this  Industry 
and  this  Code  shall  be  deemed  to  have  been  amended  so  as  to  con- 
form thereto  and  the  Administrator  may  direct  that  this  Code  be 
re])rinted  and  republished,  as  so  amended. 

2.  ISTo  pers(m  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  Avhich  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  emiDloyer  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. 

3.  Employees  shall  ha^e  the  right  to  organize  and  bargain  col- 
lectivelj^  through  representatives  of  their  own  choosing,  and  shall  be 
free  from  the  interference,  restraint,  or  coercion  of  employers  of 
labor,  or  their  agents,  in  the  designation  of  such  representatives  or 
in  self-organization  or  in  other  concerted  activities  for  the  purpose 
of  collective  bargaining  or  other  mutual  aid  or  protection.  No 
employee  and  no  one  seeking  employment  shall  be  required  as  a  con- 
dition of  emplo3'ment  to  join  any  company  union  or  to  refrain  from 
joining,  oiganizing,  or  assisting  a  labor  organization  of  his  own 
choosing.  Employers  shall  compl}?^  with  the  maximum  hours  of 
labor,  minimum  rates  of  pay,  and  other  conditions  of  employment, 
approved,  or  prescribed  by  the  President. 

4.  No  provision  in  this  Code  shall  supersede  anj-  State  or  Federal 
law  which  imposes  on  employers  more  stringent  requirements  as  to 
age  of  emploj'^ees,  wages,  hours  of  work,  or  as  to  safet3%  health,  sani- 
tar}^,  or  general  working  conditions  or  insurance  or  fire  protection, 
than  are  imposed  by  this  Code. 

5.  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. 

6.  All  employers  shall  post  copies  of  Articles  IV,  V,  and  VI,  of 
this  Code  in  conspicuous  places  accessible  to  employees. 

7.  Every  emploj'er  shall  make  reasonable  provisions  for  the  safety 
and  health  of  his  employees  at  the  place  and  during  the  hours  of 
tlieir  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. 

8.  No  provision  in  this  Code  shall  supersede  provisions  as  to 
hours,  Avages,  and  conditions  of  employment  which  are  established 


469 

for  specific  projects  by  competent  governmental  authority  acting  in 
accordance  with  law,  or  to  terms  of  employment  whicli  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. 

1).  The  Code  Authority  shall  make  a  study  of  conditions  in  the 
Industry  to  determine  the  feasibility  of  the  adoption  of  a  shorter 
Avorking  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  x)lan 
for  the  stabilization  and  regularization  of  employment. 

Article  VII — Accounting  and  Selling 

1.  The  Code  Authority  shall,  as  soon  as  practicable,  prescribe  a 
standard  method  of  costing  and  accounting  for  the  Industry  and  sub- 
mit tlie  same  to  the  Administrator.  When  it  shall  have  been  ap- 
proved by  the  Administrator,  every  member  shall  use  an  accounting 
and  costing  system  which  conforms  to  the  principles  of  and  is  at 
least  as  detailed  and  complete  as  such  standard  method. 

2.  Each  member  shall  within  twenty-four  (2-i)  hours  after  the 
effective  date  of  this  Code,  file  with  the  Executive  Authority  of  his 
division,  in  such  form  as  such  Executive  Authority  shall  prescribe, 
complete  lists  or  schedules  of  prices,  terms,  and  conditions  of  sale 
(including  all  differentials,  discounts,  trade  allowances,  printing 
charges,  and  special  charges)  of  all  products  offered  for  sale  by  such 
member,  and  sliall  so  file  all  subsequent  changes  therein  or  revisions 
thereof.  Each  such  schedule  of  prices  shall  conform  to  all  trado 
practices  and  other  provisions  established  in  and  by  this  Code  or  any 
subordinate  Code  applicable  thereto  or  any  amendment  or  supple- 
ment to  this  Code  or  to  such  subordinate  Code. 

3.  All  such  lists  or  schedules  of  prices,  terms,  and  conditions  of 
sale  and  all  changes  therein  or  revisions  thereof  shall  become  effective 
immediately  on  filing. 

4.  The  Executive  Authority  of  any  division  which  shall  include 
the  manufacture  of  made-to-order  bags  may  suspend  the  provisions 
of  Section  2  hereof  as  to  any  of  such  bags. 

5.  The  Executive  Authority  of  each  division  shall  provide  each 
member  of  its  division  with  copies  of  all  schedules  so  filed,  and  shall 
upon  request  furnish  copies  thereof  at  cost  to  nonmembers  at  the 
same  time  that  they  are  sent  to  members. 

6.  No  such  schedule  of  prices  and  conditions  of  sale  filed  by  any 
member,  or  in  effect  at  any  time  in  any  calendar  month,  shall  be 
such  as  to  permit  the  sale  of  any  product  at  less  than  the  lower 
of  the  following: 

(a)  The  cost  of  such  product  to  such  member  during  tlie  last  period 
of  two  consecutive  months,  or  two  accounting  periods  of  four  weeks 
each,  ending  not  less  than  thirty  (30)  days  prior  to  the  first  day 
of  such  month,  which  cost  shall  be  determined  pursuant  to  the 
method  of  accounting  and  costing  prescribed  by  the  Code  Authority 
under  this  Article  as  soon  as  that  method  is  prescribed  and  thereto- 
fore pursuant  to  the  method  employed  by  such  member  subject  to 


470 

such  preliminary  rules  as  the  Code  Authority  shall  prescribe  with 
the  approval  of  the  Administrator. 

(b)  The  lowest  price  filed  for  such  product  under  the  provisions 
of  this  Article  by  any  other  member  and  then  in  effect. 

7.  Each  schedule  filed  under  this  Article  shall  state  whether  the 
prices  and  conditions  therein  specified  are  justified  under  subdivi- 
sion (a)  or  under  subdivision  (b)  of  Section  6  and  in  the  case  of 
justification  under  subdivision  (b)  shall  identify  the  schedule  or 
schedules  of  the  other  member  or  members  of  the  Industry  justify- 
ing such  prices  and  conditions.  A  schedule  justified  upon  the  basis 
of  the  schedule  or  schedules  of  another  member  or  members  shall 
become  void  forthwith  upon  the  cancellation  or  revision  upward 
of  such  justifying  schedule  or  schedules. 

8.  Except  in  fulfillment  of  bona  fide  contracts  existing  on  the  effec- 
tive date  of  this  Code,  no  member  of  the  industry  shall  sell  any 
products  of  the  Industry  for  domestic  consumption  at  a  price  or 
prices  lower  than  or  upon  terms  or  conditions  more  favorable  than 
stated  in  his  price  schedule  then  on  file,  provided,  however,  that 
discontinued  lines  or  damaged  goods  or  seconds  of  any  product  may 
he.  disposed  of  in  such  manner  and  on  such  terms  and  conditions 
as  the  Executive  Authority  of  the  division  into  which  such  products 
fall  may  approve.  Withm  ten  (10)  days  after  the  effective  date 
of  this  Code,  each  member  shall  file  with  the  Executive  Authority 
of  the  interested  division  complete  details  of  all  such  bona  fide  con- 
tracts and  this  information  shall  be  available  to  the  Code  Authority. 

9.  Any  accounting  or  costing  system  which  may  be  used  for  the 
purposes  of  this  Article  shall  include  as  paper  cost  the  current 
published  delivered  market  price  of  ba^  paper,  the  member's  indi- 
vidual conversion  cost,  and  each  division's  transportation  cost  of 
shipping  bags.  The  current  published  delivered  market  price  of 
bag  paper  and  each  division's  transportation  cost  of  shipping  bags 
shall  be  determined  and  made  available  to  all  members  of  such  divi- 
sion at  all  times  by  the  Code  Authority.  Such  transportation  cost 
shall  be  the  total  transportation  charges  chargeable  against  the  ship- 
ments made  by  all  members  of  a  division  during  the  preceding  cal- 
endar quarter  year,  ending  not  less  than  thirty  (30)  days  prior  to 
the  first  day  of  the  month  in  which  such  transportation  cost  shall 
apply,  divided  by  the  total  number  of  tons  of  bags  shipped  by  all 
members  of  such  division  during  such  period.  The  Executive 
Authority  of  any  division  with  the  approval  of  the  Administrator 
may  modify  this  paragraph  as  to  such  division. 

10.  The  preceding  Section  hereof  shall  remain  in  force  only  for  a 
period  beginning  with  the  effective  dat^  of  this  Code,  and  ending  on 
the  last  day  of  the  sixth  calendar  month  thereafter,  unless  such 
period  shall  be  extended  by  the  Administrator.  At  any  time  during 
such  period  the  Administrator,  on  thirty  (30)  days'  notice  to  the 
(^ode  Authority,  may  declare  said  Section  void  and  of  no  effect. 
During  such  period,  the  members  of  the  Industry  .shall  furnish  to  a 
disinterestci  accountant,  or  other  disinterested  qualified  person,  to 
be  selected  by  the  Code  Authority,  such  information  as  the  Admin- 
istrator may  require  regarding  production  costs,  freight  charges,  and 
such  other 'matters  as  the  Administrator  may  specif3^  Such  ac- 
countant, or  other  qualified  person,  shall  be  instructed  by  the  Code 


471 

Aiitliority  to  combine  such  infoniuition  in  such  manner  as  the  Ad- 
ministrator may  require,  and  to  submit  the  same  on  behalf  of  the 
Code  Authority  to  the  Administrator. 

All  information  furnished  in  accordance  with  the  ]jrovisions  of 
I  his  Section  shall  be  confidential  except  as  to  the  xVdministrator  and 
his  assistants,  and  no  information  furnished  by  one  member  shall 
be  revealed  to  another,  nor  be  published  except  in  combination  with 
other  similar  data  and  in  such  manner  as  to  avoid  the  disclosure  of 
confidential  information. 

11.  Each  member  sliall  file  with  the  Executive  Autliority  of  the 
interested  divisions,  the  names  of  his  Aoents  and  Broilers  at  least  one 
(1)  Aveek  before  such  Ao-ents  and  Brokers  shall  be  entitled  to  the 
status  of  Agent  or  Broker.  Each  member  shall  be  responsible  for 
the  activities  of  his  Agents  and  Brokers  pertaining  to  tlie  sale  of  his 
products. 

Article  VIII— Reports  A^"D  Statistics 

1.  Each  member  shall  prepare  and  file  with  the  Secretary  of  the 
Code  Authority  at  such  times  and  in  such  manner  as  it  may  pre- 
scribe, 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,  inventory  both  raw  and 
finished,  number  of  employees,  wage  rates,  employee  earnings,  hours 
of  work  and  other  matters,  as  the  Code  Authority  or  the  Adminis- 
trator may  from  time  to  time  require.  Any  or  all  information  so 
furnished  by  any  member  shall  be  subject  to  checking  for  the  pur- 
pose of  verification  by  an  examination  of  the  books  and  accounts 
and  records  of  such  member  by  any  disinterested  accountant  or 
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  shall  be  confidential  and  the  statistics, 
data  and  information  of  one  member  shall  not  be  revealed  to  an- 
other member  except  for  the  purpose  of  enforcing  the  provisions 
of  this  Code.  No  such  data  or  information  shall  be  published  ex- 
cept in  combination  with  other  similar  data  and  in  such  a  manner  as 
to  avoid  the  disclosure  of  confidential  information.  Tlie  Code 
Authority  shall  arrange  in  such  manner  as  it  may  determine  for  the 
publication  currently  to  members  totals  of  orders  received,  unfilled 
orders,  shipments,  stocks  of  finished  goods  on  hand  and  production. 

3.  The  Code  Authority  shall  make  such  reports  to  the  Adminis- 
trator as  he  may  from  time  to  time  require. 

Article  IX — Trade  Practices 

No  member  shall : 

(a)  Induce  or  attempt  to  induce  the  breach  of  a  contract  between 
a  competitor  and  his  customer. 

(b)  Neglect  to  enforce  in  letter  or  in  spirit,  business  obligations 
in  the  form  of  written  contracts. 

(c)  Imitate  the  trade  marks  or  the  trade  names  of  a  competitor. 


472 

(d)  Defame  a  competitor  by  falsely  implying  to  him  inability 
to  perform  contracts  or  questionable  credit  standing,  or  by  spreading 
false  reports  concerning  his  transactions  with  others. 

(e)  Falsely  disparage  the  weight,  substance,  strength,  grade  or 
quality  of  a  competitor's  goods. 

(f)  Misrepresent  his  product. 

(g)  Make  or  permit  his  agent  to  make  contracts  Avhich  do  not 
cover  the  quantity,  price,  and  time  for  delivery,  except  that  any  divi- 
sion may  modify  this  paragraph  as  applied  to  such  division. 

(h)  Pay  or  allow  secret  rebates,  refunds,  credits,  or  unearned  dis- 
counts, whether  in  the  form  of  money,  advertising  allowances,  or 
otherwise,  or  extend  to  certain  purchasers  special  prices,  concessions, 
or  privileges  not  extended  to  all  purchasers  under  like  terms  and 
conditions. 

(i)  Give,  permit  to  be  given,  or  directly  offer  to  give,  anything  of 
value  for  the  purpose  of  influencing  or  rewarding  the  action  of  any 
emploj^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,  prin- 
cipal, or  party. 

Commercial  bribery  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. 

(j)  Allow  a  discount  for  cash  payment  of  more  than  2%. 

(k)  Pay  or  allow  any  Agent's  or  Broker's  commission  or  discount 
or  other  consideration  which  would  operate  as  a  reduction  of  the 
member's  published  price  to  any  buying  syndicate  or  to  any  person 
other  than  an  actual  Agent  or  Broker  as  defined  by  the  respective 
divisional  Codes. 

(1)  Permit  his  Agent  or  Broker  to  vary  from  the  published  price 
schedule  or  schedules  of  such  member. 

(m)  Exceed  a  tolerance  of  5%  beyond  the  schedule  of  basis 
weights  Avhich  may  be  prescribed  by  the  Code  Authority  and  ap- 
proved by  the  Administrator  for  any  standard  grade  of  bag  in  any 
division. 

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  following  lines : 

(a)  For  the  establishment  of  additional  rules  of  fair-trade  prac- 
tices for  the  Industry  and  for  the  codification  of  its  trade  customs 
and  the  enforcement  thereof. 

Such  recommendations,  when  approved  by  the  Administrator, 
shall  have  the  same  force  and  effect  as  other  provisions  of  this  Code. 

Article  XI — General  Pkomsions 


I 


1.  If  any  member  is  also  a  member  of  another  Industiy,  the 
rovisions  of  this  Code  shall  apply  to  and  affect  only  that  part  of 
is  business  which  is  included  in  this  Inthistry. 


473 

2.  Any  work  or  process  incidental  to,  and  carried  on  by  a  mem- 
ber at  his  plant  as  a  part  of  the  manufacture  of  any  product  of  the 
Industry,  shall  be  regarded  as  a  part  of  this  Industry. 

3.  Such  of  the  provisions  of  this  Code  as  are  not  required  to  be 
included  therein  by  the  Act,  may  with  the  approval  of  the  President 
of  the  United  States,  be  modified  or  eliminated  as  changes  in  cir- 
cumstances or  experience  may  indicate. 

4.  This  Code  and  all  the  provisions  thereof  are  expressly  made 
subject  to  the  right  of  the  President,  in  accordance  with  the  provi- 
sions 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  hereof. 

5.  This  Code  shall  become  effective  on  the  second  Monday  after 
the  date  upon  which  it  shall  be  approved  by  the  President  of  the 
United  States. 

Approved  Code  No.  230. 
Registry  No.  401-1-01. 


SCHEDULE  "A" 

Divisions  Undek  This  Code 

Banana  &  Dry  Cleaner  or  Garment  Delivery  Bag  Division 

Coffee  Bag  Division 

Glassine  Bag  Division 

Grocery  Bag  Division 

Millinery  &  Notion  Bag  Division 

Moth  Proof  Paper  Products  Division 

Shopping  Bag  Division 

Window  Face  Bag  Division 

Wholly  or  Semi-Hand  Made  Bag  Division 

(474) 


SUBORDINATE  CODE  OF  FAIR  COMPETITION  FOR  THE  BANANA 
AND  DRY  CLEANER  OR  GARMENT  DELIVERY  BAG  DIVISION  OF 
THE   PAPER  BAG  MANUFACTURING   INDUSTRY 

The  following  is  hereby  estublished  as  the  Subordinate  Code  of  Fair  Com- 
petition of  the  Banana  &  Dry  Cleaner  or  Garment  Delivery  Bag  Division  of 
the  Paper  Bag  Mamifacturiug  Industry. 

Article  I — Definitions 

Words  used  herein  are  hereby  defined  as  follows: 

1.  General  Code. — The  general  Code  of  the  Paper  Bag  Manufacturing 
Industry. 

2.  This  Division. — The  Banana  and  Dry  Cleaner  or  Garment  Delivery  Bag 
Division  of  such  industry  consisting  of  the  manufacturers  of  bags  as  defined  in 
yeetion  3  of  Article  III  of  the  General  Code. 

3.  Executive  Authority. — The  body  created  by  Section  1  of  Article  III  hereof. 
The  definitions  contained  in  Article  I  of  the  General  Code  apply  also  to  this 

Code. 

Article  II — SuBOBDiNA-noN 

1.  This  Code  is  subordinate  to  the  General  Code  and  is  submitted  pursuant  to 
the  provisions  of  Article  III  of  the  General  Code. 

2.  The  General  Code  is  hereby  recognized  as  binding  in  this  Division  and  on 
all  members  of  the  industry  included  within  this  Division. 

3.  In  the  event  that  any  provision  of  this  Code  shall  be  found  to  be  incon- 
sistent with  the  provisions  of  the  General  Code,  the  provisions  of  the  General 
Code  shall  prevail. 

Article  III — Administration 

1.  There  shall  forthwith  be  constituted  an  Executive  Authority  of  this  divi- 
sion consisting  of  persons  to  be  selected  by  the  members  of  such  division 
in  such  manner  and  under  such  regulations  as  the  Administrator  may  approve. 
In  addition  to  membership  as  above  provided,  the  member  or  members  of  the 
Code  Authority  designated  by  the  Administrator  shall  be  advisory  members 
of  such  Executive  Authority  without  vote. 

2.  The  Executive  Authority  is  charged  generally  with  the  administration 
of  this  Code  and  shall  have  sucli  other  powers  and  duties  as  are  prescribed 
herein  or  in  the  General  Cwle. 

3.  The  Executive  Authority  shall  cooperate  with  and  assist  the  Code  Author- 
ity in  administering  the  General  Code  and  in  obtaining  from  members  within 
this  Division  .such  reports,  statistics,  and  other  data  as  the  ('ode  Authority 
may  require. 

4.  Subject  to  restrictions  and  safeguards  similar  to  those  provide<l  in  Article 
VIII  of  the  General  Code,  members  shall  furnish  such  additional  information 
as  may  from  time  to  time  be  required  by  the  Executive  Authority. 

Article  IV — Trade  Customs 

The  Executive  Authority  shall  formulate  the  recognized  Trade  Customs  and 
Fair  Trade  Practices  of  this  Division,  and  may  from  time  to  time  submit  any 
such  Trade  Customs  or  Fail-  Trade  Practices  through  the  Code  Authority  to 
the  Administrator  for  approval,  and  the  same  when  approved  shall  have  the 
same  force  and  effect  as  if  incorporated  in  this  Code. 

Article  V — Production 

The  Executive  Authority  shall,  with  a  view  to  effectuating  the  policy  of  the 
Act.  make  studies  and  in  its  discretion  formulate  plans  with  a  view  to  equalizing 

(475^ 


476 

production  in  this  Division  with  demand  for  its  products;  and  through  the 
Code  Authority  may  from  time  to  time  make  recommendations  in  relation 
thereto,  and  may  propose  agreements  or  amendments  to  this  Code  designed  to 
carry  such  recommendations  into  effect. 

Article  VI — Effective  Date 

This  Code  sliall  become  effective  on  the  second  Monday  after  the  date  upon 
•which  it  phall  be  approved  by  the  President  of  the  United  States. 


SUBORDINATE    CODE    OF   FAIR    COMPETITION    FOR    THE    COFFEE 
BAG  DIVISION  OF  THE  PAPER  BAG  MANUFACTURING  INDUSTRY 

The  following  is  hereby  established  as  the  subordinate  Code  of  Fair  Competi- 
tion of  the  Coffee  Bag  Division  of  the  Paper  Bag  Manufacturing  Industry. 

Article  I— Definitions 

1.  General  Code. — The  General  Code  of  Fair  Competition  for  the  Paper  Bag 
Manufacturing  Industry. 

1'.  Division. — The  Coffee  Bag  Division  of  the  Industry,  which  is  the  branch 
manufacturing  Coffee  Bags,  as  defined  in  Definition  No.  5. 

3.  Executive  Autliority. — The  body  created  by  Article  III,  Section  1,  hereof. 

4.  Association. — The  Coffee  Bag  Manufacturers'  Association. 

5.  Coffee  Bags. — Standard  sizes  or  special  sizes  of  the  following  paper  bags 
used  as  retail  containers  for  coffee,  tea,  cocoa,  rice,  beans,  etc.,  shall  be  con- 
sidered as  Coffee  Bags : 

Fancy  and  Kraft  Duplex  Coffee  Bags. 
Fancy  and  Kraft  Unlined  Coffee  Bags. 
Fancy  and  Kraft  Triplex  Coffee  Bags. 
Cellulose  Triplex  Coffee  Bags. 
Foil  (or  Aluminum)  Lined  Coffee  Bags. 
The  definitions  contained  in  Article  I  of  the  General  Code  apply  also  in  tills 
Code. 

Article  II — Sltbordination 

1.  This  Code  is  subordinate  to  the  General  Code  and  is  submitted  pursuant 
to  the  provisions  of  Article  III  of  the  General  Code. 

2.  The  General  Code  is  hereby  recognized  as  binding  in  this  Division  and 
on  all  members  of  the  industry  included  within  this  Division. 

3.  In  the  event  that  any  provision  of  this  Code  shall  be  found  to  be  incon- 
sistent with  the  provisions  of  the  General  Code,  the  provisions  of  the  General 
Code  shall  prevail. 

Article  III — Administration 

1.  The  members  of  the  Executive  Committee  of  the  Coffee  Bag  Mfrs.  Asso- 
ciation, together  with  the  member  or  members  of  the  Code  Authority  designated 
by  the  Administrator,  are  hei'eby  constituted  the  Executive  Authority  of  this 
division.  The  member  or  members  of  the  Code  Authority  designated  by  the 
Administrator  shall  be  advisory  members  of  such  Executive  Authority  without 
vote. 

2.  The  Executive  Authority  is  charged  generally  with  the  administration  of 
this  Code  and  shall  have  such  other  powers  and  duties  as  are  prescribed  herein 
or  in  the  General  Code. 

3.  The  Executive  Authority  shall  cooperate  with  and  assist  the  Code  Authority 
in  administering  the  General  Code,  and  in  obtaining  from  members  within 
this  Division  such  reports,  statistics,  and  other  data  as  the  Code  Authority 
may  i-equire. 

4.  Subject  to  restrictions  and  safeguards  similar  to  those  provided  in 
Article  VIII  of  the  General  Code,  members  shall  furnish  such  additional 
information  as  may  from  time  to  time  be  required  by  the  Executive  Authority. 


477 

Abtici-e  IV. — Trade  Customs 

The  Executive  Authority  shall  formuhite  the  recognized  Trade  Customs 
and  I'^air  Trade  Practices  of  this  Division,  and  may  from  time  to  time  submit 
any  such  Trade  Customs  or  Fair  Trade  Practices  through  the  Code  Authority 
to  the  Administrator  for  approval,  and  the  same  when  approved  shall  have 
the  same  force  and  effect  as  if  incorporated  in  this  Code. 

Artiili';  V — Effective  Date 

This  Code  shall  become  effective  on  the  second  Monday  after  the  date  upon 
which  it  shall  be  approved  by  the  President  of  the  United  States. 


SUBORDINATE  CODE  OF  FAIR  COMPETITION  FOR  THE  GLASSINE 
BAG  DIVISION  OF  THE  PAPER  BAG  MANUFACTURING  INDUSTRY 

The  following  is  hereby  established  as  the  Subordinate  Code  of  Fair  Com- 
petition of  the  Glassine  Bag  Division  of  the  Paper  Bag  Manufacturing 
Industry. 

Article  I — Definitions 

Words  used  herein  are  hereby  defined  as  follows: 

1.  General  Code. — The  General  Code  of  Fair  Competition  for  the  Paper 
Bag  Manufacturing  Industry. 

2.  DivisiO'n. — The  Glassine  Bag  Division  of  the  Industry,  which  is  the 
branch  manufacturing  Glassine  Bags,  as  defined  in  Definition  No.  5. 

3.  Executive  Autliority. — The  body  created  by  Article  III,  Section  1.  hereof. 

4.  Association. — The  Glassine  Bag  Association. 

5.  Olassine  Bags. — Bags  made  from  plain,  embossed,  or  printed  glassine 
paper  or  other  allied  siXH^ialty  papers  which  have  always  been  included  in 
the  Paper  Schedule  of  the  Glassine  Bag  Association,  such  as :  bleached  glassine, 
amber  or  unbleached  glassine.  yellow  or  colored  glassine,  Riegeline.  RiegeUte, 
waxed  one  side  and  waxed  two  sides  Riegelite,  Lucent,  or  Hammerzine,  waxed 
Hammerzine,  white  dry  wax,  laminated  glassine,  pure  white  vegetable  parch- 
ment (excluding  lard  bags),  and  other  papers  which  may  be  added  by  the 
Executive  Authority. 

The  definitions  contained  in  Article  I  of  the  General  Code  apply  also  in 
this  Code. 

Article   II — Sveokdixation 

1.  This  Code  is  subordinate  to  the  General  Code  and  is  submitted  pursuant 
to  the  provisions  of  Article  III  of  the  General  Code. 

2.  The  General  Code  is  hereby  recognized  as  binding  in  this  Division  and 
on  all  members  of  the  industry  included  within  this  Division. 

3.  In  the  event  that  any  provision  of  this  Code  shall  be  found  to  be  incon- 
sistent with  the  provisions  of  the  General  Code,  the  provisions  of  the  General 
Code  sl\all  prevail. 

Article  III — Administration 

1.  The  meml)ers  of  the  Executive  Committee  of  the  Glassine  Bag  Association, 
together  with  the  member  or  members  of  the  Code  Authority  designated  by  the 
Administrator,  are  hereby  constituted  the  Executive  Authority  of  this  division. 
The  member  or  members  of  the  Code  Authority  designated  by  the  Administra- 
tor shall  be  advisory  members  of  such  Executive  Authority  without  vote. 

2.  The  Executive  Authority  is  charged  generally  with  the  administration 
of  this  Code  and  shall  have  such  other  powers  and  duties  as  are  prescribed 
herein  or  in  the  General  Code. 

8.  The  Executive  Authority  shall  cooperate  with  and  assist  the  Code  Author- 
ity in  administering  the  General  Code,  and  in  obtaining  from  members  within 
this  Division  such  reports,  statistics,  and  other  data  as  the  Code  Authority 
may  require. 


478 

4.  Subject  to  restrictions  and  safeguards  similar  to  those  provided  in  Article 
VIII  of  the  General  Code,  members  shall  furnish  such  additional  information 
as  may  from  time  to  time  be  required  by  tlie  Executive  Authority. 

Article  IV — Tkade  Customs 

The  Executive  Authority  shall  formulate  the  recognized  Trade  Customs  and 
Fair  Trade  Practices  of  this  Division,  and  may  from  time  to  time  submit  any- 
such  Trade  Customs  or  Pair  Trade  Practices  through  the  Code  Authority  to 
the  Administrator  for  approval,  and  the  same  when  approved  shall  have  the 
same  force  and  effect  as  if  incorporated  in  this  Code. 

Article  V — Effective  Date 

Tills  Code  shall  become  effective  on  the  second  Monday  after  the  date  upon 
which  it  shall  be  aiiproved  by  the  President  of  the  United  States. 


SUBORDINATE  CODE  OF  FAIR  COMPETITION  FOR  THE  GROCERY 
BAG  DIVISION  OF  THE  PAPER  BAG  MANUFACTURING  INDUSTRY 

The  following  is  hereby  established  as  the  Subordinate  Code  of  Fair  Compe- 
tition of  the  Grocery  Bag  Division  of  the  Paper  Bag  Manufacturing  Industry. 

Article  I — Definitions 

Words  used  herein  are  hereby  defined  as  follows : 

1.  Ocneral  Code. — The  General  Code  of  Fair  Competition  for  the  Paper  Bag 
Manufacturing  Industry. 

2.  Code. — The  suboixlinate  Code  of  Fair  Competition  for  the  Grocery  Bag  Di- 
Aisioh  of  the  Paper  Bag  Manufacturing  Industry. 

3.  This  Division. — The  Grocery  Bag  Division  of  such  Industry  comprising  the 
manufacture  of  products  as  listed  under  "  5  "  hereof. 

4.  Executive  Authority. — The  body  created  by  Section  1  of  Article  III  hereof. 

5.  Grocery  Bags. — The  following  products  manufactured  by  the  members  of 
this  Division  from  Paper : 

Grocery    Bags,    Nail   Bags,    Sugar    Bags,    Shot    Bags,    Standard    Sacks, 
Poultry  Sacks,  Bundle  Sacks. 
TTie  definitiiUKs  contained  in  Article  I  of  the  General  Code  apply  also  to  thiS' 
Code. 

Article  II — Subordination 

1.  This  Code  is  subordinate  to  the  General  Code  and  is  submitted  pursuant  to 
provisions  of  Aiticle  III  of  the  General  Code. 

2.  The  Geni  lal  Code  is  hereby  recognized  as  binding  in  this  Division  and  on 
all  members  of  the  industry  engaged  in  manufacturing  products  falling  within 
this  Division. 

3.  In  the  event  that  any  provision  of  this  Code  shall  be  found  to  be  incon- 
sistent with  the  provisions  of  the  General  Code,  the  provisions  of  the  General 
Code  shall  prevail. 

Article  III — Administration 

1.  There  shall  forthwith  be  constituted  an  Executive  Authority  of  this  divi- 
sion consisting  of  persons  to  be  selected  by  the  members  of  such  division  in 
such  manner  ixv.d  under  such  regulations  as  the  Administrator  may  approve. 
In  addition  to  i  orabership  as  above  provided,  the  member  or  members  of  the 
Code  Authority  designated  by  the  Administrator  shall  be  advisory  members 
of  such  Executi\e  Authority  without  vote. 

2.  The  Executive  Authority  is  charged  generally  with  the  administration  of 
this  Code  and  sh;iU  have  such  other  powers  and  duties  as  are  prescribed  herein, 
or  in   the  General  Code. 


479 

8.  The  Executive  Authority  shall  cooperate  with  and  assist  the  Code  Author- 
ity in  administering  the  General  Code  and  in  obtaining  from  members  within 
this  Division  such  reports,  statistics,  and  other  data  as  tlie  Code  Authority 
may  require. 

4.  Subject  to  the  same  restrictions  and  safeguards  as  provided  in  Article 
VIII  of  the  General  Code,  members  shall  furnish  such  information  and  statistics 
as  may,  from  time  to  time,  be  required  by  the  Executive  Authority. 

Article  IV — Fair  Trade  Practices  and  Trade  Customs 

The  Executive  Authority  of  this  Division  sliall  confer  with  Ihe  members  of 
the  Industry  in  respect  to  the  stabilization  of  the  Industry  and  the  elimination 
of  unfair  competitive  practices  and  shall  formulate  the  recognized  fair  trade 
practices  and  trade  customs  of  this  Division  and  shall,  from  time  to  time, 
submit  fair  trade  practices,  and  any  such  trade  customs  through  the  Code 
Authority  to  the  Administrator  for  approval,  and  the  same,  when  approved, 
shall  have  the  same  force  and  effect  as  if  incorporated  in  this  Code. 

Article  V — Effective  Date 

Tliis  Code  shall  become  effective  on  the  second  Monday  after  the  date  upon 
which  it  shall  be  approved  by  the  President  of  the  United  States. 


SUBORDINATE  CODE  OF  FAIR  COMPETITION  FOR  THE  MIL- 
LINERY AND  NOTION  BAG  DIVISION  OF  THE  PAPER  BAG 
MANUFACTURING  INDUSTRY 

The  following  is  hereby  established  as  the  Subordinate  Code  of  Fair  Competi- 
tion of  tlie  Millinery  and  Notion  Bag  Division  of  the  Paper  Bag  Manufactur- 
ing Industry. 

Article  I — Definitions 

Words  used  herein  are  hereby  defined  as  follows: 

1.  General  Code. — The  general  Code  of  the  Paper  Bag  Manufacturing  Industry. 

2.  Tim  Division. — The  Millinery  and  Notion  Bag  Division  of  such  industry 
consisting  of  the  manufacturers  of  bags  as  defined  in  Section  3  of  Article  III 
of  tlie  General  Code. 

3.  Exeeutive  Authority. — The  body  created  by  Section  1  of  Article  III  hereof. 
The  definitions  contained  in  Article  I  of  the  General  Code  applv  also  to  this 

Code. 

Article   II — Subordination 

1.  This  Code  is  subordinate  to  the  General  Code  and  is  submitted  pursuant 
to  the  provisions  of  Article  III  of  the  General  Code. 

2.  The  General  Code  is  hereby  recognized  as  binding  in  this  Division  and 
on  all  meml)ers  of  the  industry  included  within  this  Division. 

3.  In  the  event  that  any  provision  of  this  Code  shall  be  found  to  be  incon- 
sistent with  the  provisions  of  the  General  Code,  the  provisions  of  the  General 
Code  shall  prevail. 

Article  III — Administration 

1.  There  shall  forthwith  be  constituted  an  Executive  Authority  of  this  divi- 
sion consisting  of  persons  to  be  selected  by  the  members  of  such  division  in  such 
manner  and  under  such  regulations  as  the  Administrator  may  approve.  In 
addition  to  membership  as  above  provided,  the  member  or  members  of  the  Code 
Authority  designated  by  the  Administrator  shall  be  advisory  members  of  such 
Executive  Authority  without  vote. 

2.  The  Executive  Authority  is  charged  generally  with  the  administration  of 
this  Code  and  shall  have  such  other  powers  and  duties  as  are  prescribed  herein 
or  In  the  General  Code. 

3.  The  Executive  Authority  shall  cooperate  with  and  assist  the  Code  Authority 
in  administering  the  General  Code  and  in  obtaining  from  members  within  this 


480 

Division  such  reports,  statistics,  and  otlier  data  as  the  Code  Authority  may 
require. 

4.  Subject  to  restrictions  and  safeguards  similar  to  those  provided  in  Article 
VIII  of  the  General  Code,  members  shall  furnish  such  additional  information  as 
may  from  time  to  time  be  required  by  the  Executive  Authority. 

Article  IV — Trade  Customs 

The  Executive  Authority  shall  formulate  the  recognized  Trade  Customs  and 
Fair  Trade  Practices  of  this  Division,  and  may  fi'om  time  to  time  submit  any 
such  Trade  Customs  or  Fair  Trade  Practices  through  the  Code  Authority  to  the 
Administrator  for  approval,  and  the  same  when  approved  shall  have  the  same 
force  and  effect  as  if  incorporated  in  this  Code. 

Article  V— Effective  Date 

This  Code  shall  become  effective  on  the  second  Monday  after  the  date  upon 
which  it  shall  be  approved  by  the  President  of  the  United  States. 


SUBORDINATE  CODE  OF  FAIR  COMPETITION  FOR  THE  MOTH 
PROOF  PAPER  PRODUCTS  DIVISION  OF  THE  PAPER  BAG  MANU- 
FACTURING INDUSTRY 

The  following  is  hereby  established  as  the  Subordinate  Code  of  Fair  Com- 
petition of  the  Moth  Proof  Paper  Products  Division  of  the  Paper  Bag  Manu- 
facturing Industry. 

Article  I — Definitions 

Words  used  herein  are  hereby  defined  as  follows : 

1.  General  Code. — The  General  Code  of  the  Paper  Bag  Manufacturing  In- 
dustry. 

2.  This  Division. — The  Moth  Proof  Paper  Products  Division  of  such  industry 
cousistuig  of  the  manufacturers  of  bags  and  paper  as  defined  in  Section  3 
of  Article  III  of  the  General  Code. 

3.  Executive  Autliority. — The  body  created  by  Section  1  of  Article  III  hereof. 
The  definitions  contained  in  Article  I  of  the  General  Code  apply  also  to 

this  Code. 

Article  II — Subokdinatton 

1.  This  Code  is  subordinate  to  the  General  Code  and  is  submitted  pursuant 
to  the  provisions  of  Article  III  of  the  General  Code. 

2.  The  General  Code  is  hereby  recognized  as  binding  in  this  Division  and 
on  all  members  of  the  industry  included  within  this  Division. 

3.  In  the  event  that  any  provision  of  this  Code  shall  be  found  to  be  incon- 
sistent with  the  provisions  of  the  General  Code,  the  provisions  of  the  General 
Code  shall  prevail. 

Article  III — Administration 

1.  There  shall  forthwith  be  constituted  an  Executive  Authority  of  this  division 
consisting  of  persons  to  be  selected  by  the  members  of  such  division  in  such 
manner  and  under  such  regulations  as  the  Administrator  may  approve.  In 
addition  to  membership  as  above  provided,  the  member  or  members  of  the 
Code  Authority  designated  by  the  Administrator  shall  be  advisory  members  of 
such  Executive  Authority  without  vote. 

2.  The  Executive  Authority  is  charged  generally  with  the  administration  of 
this  Code  and  shall  have  such  other  powers  and  duties  as  are  prescribed  herein 
or  in  the  General  Code, 

3.  The  Executive  Authority  shall  cooperate  with  and  assist  the  Code  Author- 
ity in  administering  the  General  Code  and  in  obtaining  from  members  within 
this  Division  such  reports,  statistics,  and  other  data  as  the  Code  Authority  may 
require. 


481 

4.  Subject  to  restrictions  an<l  safeiniiirds  similar  to  tlnis!>  providoil  in  Article 
VIII  of  tlie  General  Code,  mombers  siiall  funiisb  such  additional  infonnatiou 
as  may  from  time  to  time  be  required  l)y  tlie  Executive  Autliority. 

Article  IV — Tuade  Customs 

The  Executive  Authority  shall  furniulato  liie  recognized  Trade  Customs  and 
Fair  Trade  Practices  of  this  Division,  and  may  from  time  to  time  submit  any 
sudi  Trade  Customs  -or  Fair  Trade  I'ractices  through  the  Code  Authority  to 
the  Administrator  for  approval,  and  the  same  when  approved  shall  have  the 
same  force  and  effect  as  if  incorporated  in  this  Code. 

Article  V — Effective  Date 

This  Code  shall  become  effective  on  the  second  Monday  after  the  date  upon 
which  it  shall  be  approved  by  the  President  of  the  United  States. 


SUBORDINATE  CODE  OF  FAIR  COMPETITION  FOR  THE  SHOPPING 
BAG  DIVISION  OF  THE  PAPER  BAG  MANUFACTURING  INDUSTRY 

The  following  is  hereby  established  as  the  Suboi'dinate  Code  of  Fair  Compe- 
tition of  the  Shopping  Bag  Division  of  the  Paper  Bag  Manufacturing  Industry. 

Article  I — Deiixitions 

Woixls  used  herein  are  hereby  defined  as  follows : 

1.  General  Code. — The  general  Code  of  the  Paper  Bag  Manufacturing 
Industry. 

2.  This  Division. — The  Shopping  Bag  Division  of  such  industry  consisting 
of  the  manufacturers  of  bags  as  defined  in  Section  3  of  Article  III  of  the 
General  Code. 

3.  Executive  Aitilwrity. — The  body  created  by  Section  1  of  Article  III 
hereof. 

Tlie  definitions  contained  in  Article  I  of  the  General  Code  apply  also  to 
this  Code. 

Article  II — Subordination 

1.  This  Code  is  subordinate  to  the  General  Code  and  is  submitted  pursuant 
to  the  provisions  of  Article  III  of  the  General  Code. 

2.  The  General  Code  is  hereby  recognized  as  binding  in  this  Division  and 
on  all  members  of  the  industry  included  within  this  Division. 

'd.  In  the  event  that  any  provision  of  this  Code  shall  be  found  to  be  inconsist- 
ent with  the  provisions  of  the  General  Code,  the  provisions  of  the  General  Code 
shi'.ll    prevail. 

Article  III — Administijation 

1.  There  shall  forthwith  be  constituted  an  Executive  Authority  of  this  divi- 
sion consisting  of  persons  to  be  selected  by  the  members  of  such  division  in 
such  manner  and  under  such  regulations  as  the  Administrator  may  approve. 
In  addition  to  memljership  as  above  provided,  the  member  or  members  of 
the  Code  Authority  designated  by  the  Administrator  shall  be  advisory  members 
of  such  Executive  Authority  without  vote. 

2.  The  Executive  Authority  Is  charged  generally  with  the  administration  of 
this  Code  and  shall  have  such  other  powers  and  duties  as  are  prescribed  herein 
or   in    the   General   Code. 

3.  The  Executive  Authority  shall  cooperate  with  and  a.ssist  the  Code  Author- 
ity in  administering  the  General  Code  and  in  obtaining  from  members  within 
this  Division  such  reptjrts,  statistics,  and  other  data  as  the  Code  Authority 
may  require. 

4.  Subject  to  restrictions  and  safeguards  similar  to  those  provided  in  Article 
VIII  of  the  General  Code,  members  shall  furnish  such  additional  information  as 
may  from  time  to  time  be  required  by  the  Executive  Authority. 


482 

Article  IV — Trade  Customs 

Tlie  Executive  Authority  shall  formulate  the  recogulzed  Trade  Customs  and 
Fair  Trade  Practices  of  this  Division,  and  may  from  time  to  time  submit  any 
such  Trade  Customs  or  Fair  Trade  Practices  through  the  Code  Authority  to  the 
Administrator  fv.v  approval,  and  the  same  when  approval  shall  have  the  same 
force  and  effect  as  if  incorporated  in  this  Code. 

AuTiCLE  V — Production 

The  Executive  Authority  shall,  with  a  view  to  effectuating  the  policy  of  the 
Act,  make  studies  and  in  its  discretion  formulate  plans  with  a  view  to  equalizing 
production  in  this  Division  with  demand  for  its  products ;  and  through  the  Code 
Authority  may  from  time  to  time  make  recommendations  in  relation  thereto,  and 
may  propose  agreements  or  amendments  to  this  Code  designed  to  carry  such 
recommendations  into  effect. 

Article  VI — Effectrt:  Date 

This  Code  shall  become  effective  on  the  second  Monday  after  the  date  upon 
which  it  shall  be  approved  by  the  President  of  the  United  States. 


SUBORDINATE  CODE  OF  FAIR  COMPETITION  FOR  THE  WINDOW 
FACE  BAG  DIVISION  OF  THE  PAPER  BAG  MANUFACTURING 
INDUSTRY 

The  following  is  hereby  established  as  the  Subordinate  Code  of  Fair  Com- 
petition of  the  Window  Face  Bag  Division  of  the  Paper  Bag  Manufacturing 
Industry. 

Article  I — Deiixitions 

Words  used  herein  are  hereby  defined  as  follows : 

1.  General  Code. — The  General  Code  of  Fair  Competition  for  the  Paper  Bag 
Manufacturing  Industry. 

2.  Division. — The  W^indow  Face  Bag  Division  of  the  Industry,  which  is  the 
branch  manufacturing  Window  Face  Bags  as  defined  in  Definition  No.  5. 

3.  Executive  Authoritii. — Tlie  body  created  by  Article  III,  Section  1,  hereof. 

4.  Association. — The  Window  Face  Bag  Association. 

5.  Windoto  Face  Bags. — Bags  composed  in  part  of  transparent  material  and 
in  part  of  relatively  opaque  material,  used  as  retail  containers  for  many  kinds 
of  textiles,  foods,  novelties,  etc. 

The  definitions  contained  in  Article  I  of  the  General  Code  also  apply  in 
this  Code. 

Article  II — Subordination 

1.  This  Code  is  subordinate  to  the  General  Code  and  is  submitted  pursuant  to 
the  provisions  of  Article  III  of  the  General  Code. 

2.  The  General  Code  is  hereby  recognized  as  binding  in  this  Division  and  on 
all  members  of  the  industry  included  within  this  Division. 

3.  In  the  event  that  any  provision  of  this  Code  shall  be  found  to  be  incon- 
sistent with  the  provisions  of  the  General  Code,  the  provisions  of  the  General 
Code  shall  prevail. 

Article  III — Administration 

1.  There  shall  forthwith  be  constituted  an  Executive  Authority  of  this  divi- 
sion consisting  of  persons  to  be  selected  by  the  members  of  such  division  in 
such  manner  and  under  such  regulations  as  the  Administrator  may  approve. 
In  addition  to  membership  as  above  provided,  the  member  or  members  of  the 
Code  Authority  designated  by  the  Administrator  shall  be  advisory  members  of 
such  Executive  Authority  without  vote. 

2.  The  Executive  Authority  is  charged  generally  with  the  administration  of 
this  Code  and  shall  have  such  other  powers  and  duties  as  are  prescribed  herein 
or  in  the  General  Code. 


483 

3.  The  Executive  Authority  shall  cooperate  with  and  assist  the  Code  Authority 
in  administering  tlie  General  Code,  and  in  ohtaining  from  members  within  this 
Division  such  reports,  statistics,  and  otlier  data  as  the  Code  Autliority  may 
require. 

4.  Subject  to  restrictions  and  safeguards  similar  to  those  provided  in 
Article  VIII  of  the  General  Code,  members  shall  furnish  such  additional 
infoi-mation  as  may  from  time  to  time  be  required  by  the  Executive  Authority. 

Article  IV — Tkadk  Customs 

The  Executive  Authority  shall  formulate  the  recognized  Trade  Customs  and 
Fair  Trade  Practices  of  this  Division,  and  may  from  time  to  time  submit  any 
such  Trade  Customs  or  Fair  Trade  Practices  through  the  Code  Authority  to 
the  Administrator  for  approval,  and  the  same  when  approved  shall  have  the 
same  force  and  effect  as  if  incorporated  in  this  Code. 

Abtictle  V — EfI''bcti\'e  Date 

This  Code  shall  become  effective  (»n  the  second  Monday  after  the  date  upon 
which  it  shall  be  approved  by  the  President  of  the  United  States. 


SUBORDINATE  CODE  OF  FAIR  COMPETITION  FOR  THE  WHOLLY 
OR  SEMI-HAND-MADE  PAPER  BAG  MANUFACTURING  DIVISION 
OF   THE   PAPER   BAG   MANUFACTURING    INDUSTRY 

The  following  is  hereby  established  as  the  Subordinate  Code  of  Fair  Competi- 
tion of  the  Wholly  or  Semi-Hand-Made  Paper  Bag  Manufacturers  Division  of 
the  Paper  Bag  Manufacturing  Industry. 

Article  I — Definitions 

Words  used  herein  are  defined  as  follows  : 

1.  General  Code. — The  geneial  Code  of  thi^  Paper  Bag  Manufacturing 
Industry. 

2.  This  Diviakm. — The  Wholly  or  Semi-Hand-Made  Paper  Bag  Manufactur- 
ers Divisicm  of  such  industry  as  defined  in  Section  3  of  Article  III  of  the 
(Jeneral  Code. 

3.  Executive  Authority. — The  body  created  by  Section  1  of  Article  III 
hereof. 

The  (Ufinirions  contained  in  Article  I  of  the  General  Code  apply  also  to  this 
Code. 

Article  II — Subordination 

1.  This  Code  is  subordinate  to  the  General  Code  and  is  submitted  pursuant  to 
the  provisions  of  Article  III  of  the  General  Code, 

2.  The  General  Code  is  hereby  recognized  as  binding  in  this  Division  and  on 
all  members  of  the  Industry  included  within  this  Division. 

3.  In  the  event  that  any  provisions  of  this  ('ode  shall  be  found  to  be  incon- 
sistent with  the  provisions  of  the  General  Code,  the  provisions  of  the  General 
<  'ode  shall  prevail. 

Arttci.b  HI — Administration 

1.  There  shall  forthwith  be  constituted  an  Executive  Authority  of  this  divi- 
sion consisting  of  persons  to  be  selected  by  the  members  of  the  division  in 
such  manner  and  under  such  regulations  as  the  Administrator  may  approve. 
In  addition  to  member.ship  as  above  provided,  the  member  or  members  of 
the  Code  Authority  designated  l»y  the  Administrator  shall  be  advisory  mem- 
bers of  such  Executive  Authority  without  vote. 

2.  The  Executive  Authority  is  charged  with  the  Administration  of  thia 
Code  and  shall  have  such  other  powers  and  duties  as  are  prescribed  herein 
or  in  the  General  Code. 


484 

3.  The  Executive  Anthortty  shall  cooi)erate  with  and  assist  the  Code  Author- 
ity in  administering  the  General  Code  and  in  obtaining  from  members  within 
this  Division  such  reports,  statistics,  and  other  data  as  the  Code  Authority 
may  require. 

Article  IV — Trade  Customs 

The  Executive  Authority  shall  formulate  recognized  Trade  Customs  and 
Fair  Trade  Practices  of  this  Division,  and  may  from  time  to  time  submit 
any  such  Ti-ade  Customs  or  Fair  Trade  Practices  through  the  Code  Authority 
to  the  Administrator  for  approval,  and  the  same  when  approved  shall  have 
the  same  force  and  effect  as  if  incorporated  in  this  Code. 

Article  V — Effectivh  Date 

This  Code  shall  become  effective  on  the  second  Monday  after  the  date  upon 
which  it  shall  be  approved  by  the  President  of  the  United  States. 

o 


Approved  Code  No.  231 

CODE  OF  FAIR  COMPETITION 

FOR  THE 

SURGICAL  DRESSINGS  INDUSTRY 

As  Approved  on  January  27,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

SURGICAL  DRESSINGS  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  Surgical  Dressings  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  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,  provided,  how- 
ever, that  continued  participation  of  the  Association  of  Surgical 
Dressings  Manufacturers  of  the  United  States  shall  be  contingent 
upon  the  amendment  of  the  Constitution  and  By-Laws  of  such 
Association  to  the  satisfaction  of  the  Administrator  on  or  before 
February  15,  1934. 

Hugh  S.  Johnson, 
Administrator  for  Industrial  Recovery, 

Approval  recommended : 
A.  D.  Whiteside, 

Division  A dministrafor. 

Washington,  D.C. 

January  £7,  193/^.. 

36176° 313-141 34  (485) 


The  President, 

The  White  House. 


INTRODUCTION 


Sir:  This  is  the  report  of  the  Administrator  on  the  application 
for,  and  public  hearing  on,  a  Code  of  Fair  Competition  for  the 
Surgical  Dressings  Industry,  as  proposed  by  the  Association  of  Sur- 
gical Dressings  Manufacturers  of  the  United  States.  The  public 
hearing  was  conducted  in  Washington  on  November  2,  1933.  Every 
person  who  requested  an  appearance  was  freely  heard  in  accordance 
with  statutory  and  regailatory  requirements. 

There  are  fifteen  known  firms  in  this  Industry,  of  which  ten  are 
members  of  the  Association  and  account  for  95%  of  all  surgical 
dressings  produced.  The  five  nonmembers,  representing  5%  or  less 
of  the  total  production,  are,  with  two  possible  exceptions,  more  closely 
identified  with  other  industries. 

definition 

The  definition  of  the  Industry,  as  stated  in  Article  II,  Section  1,  of 
the  Code  appended  hereto,  has  been  so  drawn  as  to  exclude  the  manu- 
facture of  gauze.  Absorbent  surgical  gauze,  from  which  a  high 
percentage  of  surgical  dressings  derives,  is  the  staple  of  this  Indus- 
try; it  is  manufactured  from  a  light-weight,  open  weave  cloth,  made 
from  standard  print-cloth  yarns  and  woven  on  standard  looms, 
known  in  the  cotton  mill  business  as  "  tobacco  cloth."  Only  four 
of  the  members  of  the  Surgical  Dressings  Industiy  are  known  to  own 
or  control  mills  for  the  production  of  gauze,  and  it  was  the  con- 
tention of  two  of  these  manufacturers  that  the  Surgical  Dressings 
Industry  should  properly  include  the  manufacture  of  gauze,  now 
conducted  under  the  Code  of  Fair  Competition  for  the  Cotton  Tex- 
tile Industry  as  approved  by  you  on  July  9,  1933.  Whereas  it  is 
apparent  that  advantages  might  conceivably  accrue  to  those  who 
manufacture  both  gauze  and  surgical  dressings,  any  such  advantages 
would  be  more  than  counterbalanced  by  the  disrupting  effect  on  the 
cotton  textile  industry  and  might  work  a  competitive  hardship  on 
those  manufacturers  of  surgical  dressings  who  have  to  seek  the  open 
market  for  their  gauze  requirements. 

ECONOMIC   AND   STATISTICAL   MATERIAL 

Sales  volume  for  the  peak  years  of  1929  and  1930  is  estimated  at 
$40,000,000  and  employment  at  about  3,750.  Whereas  sales  for  1933 
will  probably  be  in  the  vicinity  of  only  $25,000,000,  employment  at 
August  1,  1933  was  approximately  4,000,  an  all-time  high.  Thus  it 
would  not  appear  that  the  Industry  can  reasonably  be  expected  to 
do  a  great  deal  more  in  the  direction  of  increased  employment,  al- 

(4SG) 


487 

though  there  is  room  for  improvement  in  the  matter  of  increased 
purchasing  power.  In  the  lirst  six  months  of  1933  average  hours 
worked  were  in  excess  of  forty  and  six  of  the  members  reported 
fifty  hours  or  more.  Rates  of  pay  were  as  low  as  200  per  hour  for 
unskilled  female  workers,  although  a  weighted  average  would  doubt- 
less be  very  much  more  satisfactory. 

In  this  connection,  it  is  pertinent  to  remark  that  something  like 
75%  of  the  total  production  of  surgical  dressings  is  in  the  hands  of 
two  manufacturers.  This  unusual  concentration  of  production  has 
had  to  be  a  constant  consideration  in  respect  of  all  provisions  in  this 
Code  because  what  might  seem  eminently  fair  for  the  large  concern 
would  constitute  an  inequitable  competitive  disadvantage  for  the 
small. 

RESUME   OF   CODE   PROVISIONS 

The  Code  establishes  40  hours  as  the  basic  week  for  production 
and  321,40  per  hour  as  the  minimum  rate  of  pay.  Owing  in  part 
to  the  application  of  the  President's  Reemployment  Agreement,  it  is 
safe  to  say  that  a  substantial  part  of  the  industry  is  already  on  a 
basis  more  favorable  than  that  imposed  by  the  Code  provisions,  but 
these  provisions  will,  none  the  less,  require  a  real  contribution  toward 
recovery  from  the  balance  of  the  industry  and  particularly  from  the 
small  units,  amounting  in  some  cases  to  at  least  a  20%  reduction  in 
time  and  a  40%  gain  in  wages.  I  believe  that  any  more  stringent 
limitations  at  the  present  time  would  endanger  the  existence  of  the 
smaller  units  and  disrupt  the  competitive  situation  in  the  industr3^ 

The  Code  is  unique  in  that  there  are  no  trade  practice  regulations. 

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  Avill  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  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 
powder,  by  reducing  and  relieving  unemployment,  by  improving 
standards  of  labor,  and  by  otherv/ise  rehabilitating  industry. 

(b)  Said  Industry  normally  employs  not  more  than  50,000 
employees;  and  is  not  classified  b}'  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  Avithout  limi- 


488 

tation  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  Avill  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, 

Administrator. 
January  27,  1934. 


CODE  OF  FAIR  COMPETITION 

FOR  THE 

SURGICAL  DRESSINGS  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  Surgical  Dressings  Industry,  and  shall 
be  the  standard  of  fair  competition  for  such  Industry  and  shall  be 
binding  upon  every  member  thereof. 

Article  II — Defixitions 

The  term  "  Surgical  Dressings  Industry  ",  hereinafter  called  "  the 
Industry  ",  as  used  herein,  includes  the  manufacture  of  surgical 
cotton,  adhesive  and  medicated  plasters,  and  the  conversion  of  un- 
bleached gauze  to  absorbent  surgical  gauze,  gauze  bandages,  gauze 
sponges  and  pads,  and  related  gauze  or  gauze  and  cotton  dressings 
and/or  those  products  made  of  other  absorbent  materials,  such  as 
cellulose  wadding,  but  does  not  include  sanitary  napkins  and  cleans- 
ing tissue. 

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 
an}^  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, 
Title  I  of  the  National  Industrial  Recovery  Act,  and  the  Admin- 
istrator for  Industrial  Recovery. 

The  term  "  Code  Authority  "  as  used  herein  means  the  body  con- 
stituted by  Article  VI,  Sections  1  and  2. 

Population  for  the  purpose  of  this  Code  shall  be  determined  by 
reference  to  the  1080  Federal  Census. 

Article  III^ — Hours 

1.  No  office  employee,  repair  man,  engineer,  coal  passer,  electrician, 
or  cleaner  shall  be  permitted  to  work  in  excess  of  forty  (40)  hours 
per  week  averaged  over  a  consecutive  eight-week  period  and  in  no 
event  in  excess  of  fortj^-eight  (48)  hours  in  any  one  week,  provided 

(4S9) 


490 

that  anj^  such  employee,  with  the  exception  of  an  office  employee, 
shall  be  paid  at  one  and  one  third  times  the  normal  rate  for  any 
time  worked  in  excess  of  forty  (40)  hours  in  any  one  week. 

2.  No  watchman  shall  be  permitted  to  work  in  excess  of  fifty-six 
(56)  hours  per  week  averaged  over  a  two  weeks'  period  and  in  no 
event  shall  be  permitted  to  work  in  excess  of  six  days  in  any  seven- 
day  period. 

3.  No  fireman  shalj  be  permitted  to  work  in  excess  of  forty-two 
(42)  hours  in  any  one  week. 

4.  No  other  employee,  except  employees  engaged  in  a  managerial 
capacity,  receiving  at  least  thirty-five  ($35.00)  dollars  a  week  and 
outside  salesmen  shall  be  permitted  to  work  in  excess  of  forty  (40) 
hours  in  any  one  week  or  ten  (10)  hours  in  any  twenty-four-hour 
period. 

5.  The  maximum  hours  fixed  in  the  foregoing  section  shall  not 
apply  to  any  employee  on  emergency  maintenance  or  emergency 
repair  work  involving  breakdowns  or  protection  of  life  or  prop- 
erty, but  in  any  such  special  case  at  least  one  and  one  third  times 
his  normal  rate  shall  be  paid  for  hours  worked  in  excess  of  the 
maximum  hours  herein  provided. 

6.  No  employee  shall  be  permitted  to  work  more  than  twenty-four 
(24)  days  in  any  twenty-eight  (28)  day  period. 

7.  In  the  event  of  an  emergency  due  to  war,  epidemic,  catastrophe, 
or  Act  of  God  wherein  the  public  health  is  threatened,  the  stipula- 
tion regarding  maximum  hours  of  employment  shall  be  temporarily 
suspended,  and  such  suspension  shall  be  forthwith  reported  to  the 
Administrator. 

Article  IV — Wages 

1.  No  office  employee  shall  be  paid  at  less  than  the  rate  of  fifteen 
($15.00)  dollars  per  week  in  any  City  of  over  500,000  population, 
or  in  the  immediate  trade  area  of  such  City;  not  less  than  fourteen 
dollars  and  fifty  cents  ($14.50)  per  week  in  any  City  of  between 
250,000  and  500,000  population,  or  in  the  immediate  trade  area  of 
such  City;  nor  less  than  fourteen  ($14.00)  dollars  per  week  in  any 
City  of  less  than  250,000  population,  or  in  the  immediate  trade 
area  of  such  City. 

2.  No  other  employee  shall  be  paid  at  less  than  the  rate  of  thirty- 
two  and  one  half  cents  (321^^)  per  hour,  except  that  a  learner  dur- 
ing a  period  of  six  weeks  may  be  paid  a  rate  of  not  less  than 
eighty  (80%)  percent  of  the  foregoing  minimum  rate  provided, 
however,  that  such  classification  of  learners  shall  not  exceed  five 
(5%)  percent  of  the  total  number  of  employees  of  any  employer. 

No  employee  shall  be  classed  as  a  learner  who  has  worked  for  any 
employer  in  the  Industry  a  total  of  eight  (8)  weeks  within  the 
preceding  two  (2)  years. 

3.  This  Article  establishes  a  minimum  rate  of  pay  Avliich  shall 
apply  irrespective  of  whether  an  employee  is  actually  compensated 
on  a  time-rate,  piecework,  or  other  basis. 

4.  Rates  of  pay  in  excess  of  the  minimum  established  by  this  Code 
shall  be  adjusted  so  as  to  preserve  equitable  differentials  between  the 
various  occupations  in  the  Industry.  A  definite  plan  for  the  adjust- 
ment of  those  wages  above  the  minimum  heroin  prescribed  shall  be 


491 

presented  to  the  Administrator  for  his  approval  within  thirty  (30) 
days  of  the  effective  date  of  this  Code. 

5.  Female  emploj^ees  performing  the  same  work  under  substan- 
tially the  same  conditions  as  male  emploj'ees  shall  receive  the  same 
rates  of  pa}^  as  male  employees. 

6.  A  person  whose  earning  capacity  is  limited  because  of  age  or 
jihysical  or  mental  handicap  may  be  emploj-ed  on  special  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  Authorit}''  a  list  of  all  such 
persons  employed  by  him, 

7.  No  employee  shall  be  dismissed  by  reason  of  making  a  com- 
plaint or  giving  evidence  with  respect  to  a  violation  of  this  Code. 


2-1 


rVRTiCLE  V — General  Labor  Provisions 


1.  Child  Labor  Provision. — No  person  under  sixteen  (16)  years  of 
age  shall  be  employed  in  the  Industry,  nor  anyone  under  eighteen 
(18)  years  of  age  at  operations  or  occupations  hazardous  in  nature 
or  detrimental  to  health.  The  Code  Authority  shall  submit  to  the 
Administrator  before  March  1,  1934,  a  list  of  such  occupations.  In 
any  State,  an  emplo3^er  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. — In  compliance  with  Section  7  (a)  of 
the  Act,  it  is  provided : 

(a)  That  employees  shall  have  the  right  to  organize  and  bargain 
coUectivel}',  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.  Rcda-ssificaiion  of  Employees. — Employers  shall  not  reclassify 
employees  or  duties  or  occupations,  or  engage  in  any  otlier  subterfuge 
so  as  to  defeat  the  purposes  of  the  Act  or  of  this  Code. 

4.  Standards  for  Safety  and  Health. — Every  employer  shall  make 
reasonable  provision  for  the  safety  and  health  of  his  employees  at 
the  place  and  durinf^  the  hours  of  their  employment.  Standards  for 
safety  and  health  shall  l)e  submitted  by  the  Code  Authority  to  the 
Administrator  within  six  (6)  months  after  the  effective  date  of 
this  Code. 


492 

5,  State  Laws. — No  provisions  in  this  Code  shall  supersede  any 
State  or  Federal  law  which  imposes  more  stringent  requirements  on 
employers  as  to  age  of  employees,  wages,  hours  of  work,  or  as  to 
safety,  health,  sanitar}^  or  general  working  conditions  or  insurance, 
or  fire  protection,  than  under  this  Code. 

6.  Posting. — Employers  shall  post  in  ten-point  type  or  larger  in 
conspicuous  places  readily  accessible  to  the  employees  Articles  III, 
IV,  and  V  of  this  Code/ 

Article  VI — Organization,  Powers,  and  Duties  or  the  Code 

Authority 

1.  Orgamzation. — A  Code  Authority  is  hereby  constituted  to  co- 
operate with  the  Administrator  in  the  administration  of  this  Code. 

2.  The  Code  Authority  shall  consist  of  not  more  than  five  indi- 
viduals or  such  other  number  as  may  be  approved  from  time  to  time 
by  the  Administrator,  to  be  selected  by  the  Industry  as  hereinafter 
set  forth,  and  of  such  additional  members  without  vote  as  the  Admin- 
istrator, in  his  discretion,  may  appoint  to  represent  such  groups  or 
interests  or  such  governmental  agencies  as  he  may  designate. 

The  Code  Authority  members  to  be  selected  by  the  Industry  shall 
be  elected  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  fourteen  (14)  days  of  the  effective  date  of  this  Code.  In 
the  interim,  the  Code  Committee  of  the  Association  of  Surgical 
Dressings  Manufacturers  of  the  United  States  shall  fulfill  the  func- 
tions 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,  organiza- 
tion, and  activities  as  the  Administrator  may  deem  necessarj^  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  hear- 
ings as  he  may  deem  proper;  and  thereafter,  if  he  shall  find  that  the 
Code  Authority  is  not  truly  representative  or  does  not  in  other  re- 
spects comply  with  the  provisions  of  the  Act,  may  require  an  appro- 
priate modification  in  the  method  of  selection  of  the  Code  Authority. 

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  and  to  use  the 
N.R.A.  Insignia  by  assenting  to  and  complying  with  the  require- 
ments of  this  Code  and  sustaining  their  reasonable  share  of  the 
expenses  of  its  administration.     Such  reasonable  share  of  the  ex- 

*  Sec  paragrapL  2  of  order  approving  tbis  Code. 


493 

penses  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. 

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  an}^  act  of  any  other  member,  officer,  agent,  or  employee  of  the 
Code  Authority  exercising  reasonable  diligence  in  the  conduct  of 
his  duties  hereunder  nor  be  liable  to  anyone  for  any  action  or  omis- 
sion to  act  under  the  Code,  except  for  his  own  willful  misfeasance 
or  nonfeasance. 

7.  Powers  and  Duties. — The  Code  Authority  shall  have  the  follow- 
ing duties  and  powers  to  the  extent  permitted  by  the  Act : 

(a)  To  adopt  bjdaws  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,  the  Administrator  and  the  President,  at  such  time  and 
in  such  manner  as  may  be  prescribed  by  the  Code  Authority,  statis- 
tics covering  number  of  employees,  wage  rates,  employee  earnings, 
hours  of  work,  and  such  other  data  as  may  be  required  by  the 
Administrator.  All  such  individual  reports  and  statistics  shall  be 
kept  confidential  as  to  members  of  the  Industry,  including  such 
members  serving  on  the  Code  Authority,  and  only  general  summaries 
thereof,  prepared  by  a  confidential  agent  chosen  by  the  Code  Author- 
ity, 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  to  violations. 

(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  responsibilities  under  this  Code  and  that  such, 
trade  associations  and  agencies  shall  at  all  times  be  subject  to  and 
compl}'  with  the  provisions  hereof. 

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

(f )  To  cooperate  with  the  Administrator  in  regulating  the  use  of 
the  N.R.A.  Insignia  solely  by  those  employers  who  have  assented  to, 
and  are  complying  with,  this  Code. 

(g)  To  initiate,  consider,  and  make  recommeHdations  for  the 
modification  or  amendment  of  this  Code. 

8-  If  the  Administrator  shall  determine  that  anj'^  action  of  a  code 
authority  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  days  to  afford  an 
opportunity  for  investigation  of  the  merits  of  such  action  and  further 
consideration  b}'^  such  code  authority  or  agency  pending  final  action, 
which  shall  be  taken  only  upon  approval  by  the  Administrator. 


494 

9.  General  Administrative  Provision. — In  addition  to  the  infor- 
mation required  to  be  submitted  to  the  Code  x^uthority  as  set  forth 
in  this  Article  there  shall  be  furnished  to  Government  agencies  such 
statistical  information  as  the  Administrator  may  deem  necessary 
for  the  purposes  recited  in  Section  3  (a)  of  the  National  Industrial 
Recovery  Act. 

Article  YII — 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  anj^  order,  ap- 
proval, license,  rule,  or  regulation  issued  under  Title  I  of  said  Act 
and  specifically,  but  without  limitation,  to  the  right  of  the  President 
to  cancel  or  modify  his  approval  of  this  Code  or  any  conditions 
imposed  by  him  upon  his  approval  thereof. 

2.  This  Code,  except  as  to  provisions  required  by  the  Act,  may 
be  modified  on  the  basis  of  experience  or  changes  in  circumstances, 
such  modification  to  be  based  upon  application  to  the  Administrator 
and  such  notice  and  hearing  as  he  shall  specify,  and  to  become 
effective  on  approval  of  the  President. 

Article  VIII — Monopolies 

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

Article  IX — Price  Increases 

Whereas,  the  policy  of  the  Act  to  increase  real  purchasing  power 
will  be  made  more  difficult  of  consummation  if  prices  of  goods  and, 
services  increase  as  rapidly  as  wages,  it  is  recognized  that  price  in- 
creases except  such  as  may  be  required  to  meet  individual  cost  should 
be  delayed.  But  when  made  such  increases  should,  so  far  as  possible, 
be  limited  to  actual  additional  increase  in  the  seller's  costs. 

Article  X — Effective  Date 

This  Code  shall  become  effective  on  the  second  Monday  after  its 
approval  by  the  President. 


Approved  Code  No.  231. 
Registry  No.  1628-06. 


o 


Approved  Code  No.  232 
CODE  OF  FAIR  COMPETITION 

FOR  THE 

MERCHANDISE  WAREHOUSING  TRADE 

As  Approved  on  January  27,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

MERCHANDISE  WAREHOUSING  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  Merchandise  Warehousing  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 ;  provided,  however,  that 
the  continued  participation  of  the  Merchandise  Division  of  the 
American  Warehousemen's  Association  shall  be  contingent  upon  the 
amendment  of  the  constitution  and  bylaws  of  such  association  to  the 
satisfaction  of  the  Administrator  on  or  before  February  15,  1934. 

Hugh  S.  Johnson, 
Adhmnistratcy)'  for  Industrial  Recovery. 

Approval  recommended : 
A.  D.  Whitesidf:. 

I  J  ivis  ion  A  dvvin  is  trat  or. 

Washington,  D.C, 

January  27,  1934. 

364li0° 313-144 34  (495) 


The  President, 

The  White  House. 
Sir  :  This  is  a  report  of  the  Hearing  on  the  Code  of  Fair  Competi- 
tion for  the  Merchandising  Warehousing  Industry,  conducted  in  the 
Willard  Hotel,  on  October  27th,  1933.  The  Code  which  is  attached 
was  presented  by  duly  qualified  and  authorized  representatives  of  the 
Industry,  complying  with  the  statutory  requirements,  said  to  represent 
80  percent  of  the  space  available  for  merchandise  warehousing 
purposes. 

THE  INDUSTRY 

The  number  of  firms  in  this  business  aggregate  1,420.  These 
firms  utilize  approximately  45,000,000  square  feet  out  of  a  capacity 
of  75,000,000  square  feet.  Approximately  30,000  employees  are 
affected  by  this  Code. 

It  is  estimated  that  employment  of  warehouse  labor  will  be 
increased  14  percent  by  the  establishment  of  the  uniform  45  max- 
imum hour  week  proposed  by  the  Code.  It  is  stated  that  the  increase 
in  weekly  pay  rolls  under  the  proposed  minimum  wage  will  be  7 
percent. 

PROVISIONS  OF  THE  CODE 

The  Code  provides  for  a  basic  work  week  of  45  hours.  The  Code 
proposes  wage  rates  with  differentials  established  on  the  basis  of 
size  of  city  and  region.  The  proposed  minimum  hourly  wage  rates 
vary  from  27.5  to  40  cents.  The  minimum  weekly  wage  rates  pro- 
posed for  clerical  employees  range  from  $13.00  to  $15.00. 

Under  Article  IV,  Administration,  the  Code  provides  for  a  Code 
Authority  of  12  members  from  the  Trade  and,  at  the  discretion  of 
the  Administrator,  three  additional  members  from  the  government. 

The  Trade  Practice  Section  of  this  Code  is  for  the  most  part  a 
codification  of  rules  and  regulations  which  have  been  well  established 
by  the  association  serving  this  Trade. 

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  provide 
for  the  general  welfare  by  promoting  the  organization  of  industry  for 
the  purpose  of  cooperative  action  among  the  trade  groups,  by  induc- 
ing and  maintaining  united  action  of  labor  and  management  under 

(496) 


497 

adequate  Governmental  sanctions  and  supervision,  by  eliminating 
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  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,  the  Code  has  been  approved. 
Respectfully, 

Hugh  S.  Johnson, 

A  dministrator, 
January  27,  1934. 


CODE  OF  FAIR  COMPETITION 

FOR  THE 

MERCHANDISE  WAREHOUSING  TRADE 

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  Merchandise  Warehousing  Trade,  and 
shall  be  the  standard  of  Fair  Competition  for  such  trade,  and  shall 
be  binding  upon  every  member  thereof. 

Article  II 

The  term  "  Merchandise  Warehousing  Trade",  or  "  Trade",  as 
used  herein,  includes  the  furnishing,  for  a  consideration,  of  ware- 
housing services  for  goods,  wares  and/or  merchandise,  except: 

(a)  Grain  in  bulk  (grain  elevators). 

(b)  Used  household  goods  and/or  used  personal  effects  (house- 
hold goods  w^arehouses,  parcel  rooms,  and  safe  deposit  vaults). 

(c)  Used  vehicles   (public  garages). 

(d)  Such  goods,  wares,  and/or  merchandise  as  require  for  their 
preservation  artificial  refrigeration  below  45  degrees  Fahrenheit 
(cold-storage  warehouse). 

(e)  Warehousing  services  performed  by  those  who  are  engaged  in 
warehousing  only  agricultural  commodities  that  are  grown  in  their 
immediate  area. 

(f)  Such  warehousing  services  as  may  be  required  by  the  Inter- 
state Commerce  Act  to  be  furnished  by  common  carriers. 

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

The  terms  "  employer  ",  "  warehouseman  ",  or  "  merchandise  ware- 
houseman ",  as  used  herein  include  anyone  by  whom  any  such  em- 
ployee is  compensated  or  employed. 

The  term  "  member  of  the  Trade  "  includes  anyone  engaged  in  the 
Merchandise  Warehousing  Trade  as  above  defined,  either  as  an  em- 
ployer or  on  his  own  behalf. 

The  term  "  Code  Authority  "  as  used  herein  means  the  Merchandise 
Warehousing  Trade  Code  Authority,  as  provided  for  in  Article  VI 
of  this  Code. 

(498) 


499 

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  of  said 
Act. 

Population  for  the  purposes  of  this  Code  shall  be  determined  by 
reference  to  the  1980  Federal  Census. 

Article  III — Hours 

Section  1.  No  employee  shall  be  permitted  to  work  in  excess  of 
forty-five  (45)  hours  in  any  one  week  or  eight  (8)  hours  in  any 
twenty-four  (24)  hour  period,  except  as  otherwise  provided  in  this 
Article. 

Sec.  2.  Tlie  maximum  hours  fixed  in  the  foregoing  section  shall 
not  apply  to:  (a)  Aii}^  employee  in  a  managerial  or  executive  capa- 
city who  receives  more  than  thirty-five  dollars  ($35.00)  per  week; 
(b)  any  employee  on  emergency  work,  but  in  any  such  special  case 
one  and  one  half  (lYz)  times  his  hourly  rate  shall  be  paid  for  each 
hour  worked  in  excess  of  eight  (8)  hours  per  day  or  forty-five  (45) 
hours  per  week;  (c)  watchmen,  who  shall  not  be  permitted  to  work 
in  excess  of  fifty-four  (54)  hours  in  any  one  week  or  more  than  six 
(G)  days  in  any  consecutive  seven  (7)  days. 

Article  IV — Wages 

Section  1.  (a)  No  warehouse  labor  shall  be  paid  at  less  than  the 
following  hourl}'  rates,  regardless  of  whether  an  employee  is  com- 
pensated on  a  time  rate,  piecework  or  other  basis : 

Regions  {as  established  in  Article  VI) 


In  cities  of  more  than  500,000  population 
In  cities  of  50,000  to  500,000  population.. 
In  cities  of  less  than  50,000  population... 


In  regions 
Sand  7 


$0. 325 
.30 
.275 


In  all  other 
regions 


$0.40 
.375 
.35 


(b)  No  office  or  clerical  emploj^ee  shall  be  paid  at  less  than  the 
foUoAving  Aveekly  rates  except  office  boys  (16  to  18  years  of  age)  who 
may  be  comjiensated  at  not  less  than  80%  of  that  amount,  provided 
tliat  the  total  number  of  those  so  compensated  shall  not  exceed  10% 
of  the  total  number  of  office  employees,  with  a  minimum  of  one : 

In  cities  of  inoi-e  than  500.000  population $15.00 

In  cities  from  50,000  to  500000  population 14.  50 

In  cities  of  le.ss  than  50,000  population 13.  50 

(c)  No  office  or  clerical  employee  engaged  on  other  than  a  weekly 
or  longer  emploj-ment  basis  shall  be  paid  at  less  than  forty  (40)  cents 
per  hour  in  any  of  the  Regions  established  in  Article  VI. 

(d)  No  employee  whose  full-time  Aveekly  hours,  as  of  July  1, 
1983,  are  reduced,  by  reason  of  the  provisions  of  Article  III  of  this 
Code,  by  less  than  twenty  percent  (20%)  shall  have  his  full-time 
weekly  earnings,  as  of  July  1,  1933,  reduced.     No  employee  whose 


500 

full-time  weekly  hours,  as  of  July  1,  1933,  are  reduced,  by  reason  of 
the  provisions  of  Article  III  of  this  Code,  in  excess  of  twenty  per- 
cent (20% )  shall  have  his  said  earnings  as  of  July  1,  1933,  reduced 
by  more  than  fifty  percent  (50%)  of  the  amount  calculated  by  mul- 
tiplying the  reduction  in  hours  by  the  Code  hourly  rate. 

Sec.  2.  Each  member  of  the  Trade  shall,  within  thirty  (30)  days 
after  the  effective  date  of  this  Code,  efl'ect  an  ec{uitable  adjustment  of 
all  wages  above  the  minimum  herein  prescribed. 

Article  V — General  Labor  Provisions 

Section  1.  Each  member  of  the  Trade  shall  comply  with  the 
following  requirements  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  employment  shall  be  required 
as  a  condition  of  employment  to  join  any  company  union  or  to  re- 
frain from  joining,  organizing,  or  assisting  a  labor  organization  of 
his  own  choosing.  • 

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

Sec.  2.  No  employer  shall  employ  any  person  under  sixteen  (16) 
years  of  age. 

Sec.  3.  Within  each  State  this  Code  shall  not  supersede  any  laws 
of  such  State  imposing  more  stringent  requirements  on  employers 
regulating  the  age  of  employees,  wages,  hours  of  work,  or  health, 
fire,  or  general  working  conditions  than  under  this  Code. 

Sec.  4.  Employers  shall  not  reclassify  employees  or  duties  of 
occupations  performed  by  employees  so  as  to  defeat  the  purposes  of 
the  Act. 

Sec.  5.  Each  employer  shall  post  in  conspicuous  places  full  copies 
of  this  Code. 

Article  VI — Administration 

To  further  effectuate  the  poHcies  of  the  Act,  a  Merchandise  Ware- 
housing Trade  Code  Authority  is  hereby  constituted  to  cooperate 
with  the  Administrator  in  the  administration  of  this  Code. 

Section  1.  Organization  and  Constitution  of  Code  Authority. 

(a)  The  Code  Authority  shall  consist  of  twelve  (12)  individuals 
from  the  Trade,  ten  (10)  of  whom  shall  be  elected  by  members  of 
the  Trade  and  two  of  whom  shall  be  the  President  and  Vice  Presi- 
dent of  the  American  Warehouseman's  Association,  Merchandise 
Division,  or  sucli  other  number  as  may  be  approved  from  time  to 
time  by  the  Administrator,  to  be  elected  as  hereinafter  provided, 
and  of  sucli  additional  members  without  vote,  not  to  exceed  three 
(3),  as  the  Administrator,  in  his  discretion,  may  appoint  to  represent 
such  groups  or  governmental  agencies  as  he  may  designate. 


501 

The  Executive  Committee  of  the  American  Wareliousemans  As- 
sociation, Merchandise  Division,  shall  arrange  for  the  nomination 
and  election  of  the  Trade  members  of  the  Code  Authority  to  be 
completed  not  later  than  sixty  (GO)  days  after  the  effective  date  of 
this  code.  Due  and  timely  notice  of  such  election  shall  be  given  to 
all  members  of  the  Trade  who  have  complied  with  the  terms  of 
Section  3  of  this  Article.  Each  such  member  of  the  Trade  shall  be 
entitled  to  one  vote  in  person  or  by  proxy  in  the  nomination  and 
election  of  the  member  of  the  Code  Authority  for  his  region.  Nomi- 
nations and  election  for  each  region  shall  be  made  in  open  meeting 
by  plurality  vote  of  the  members  of  the  Trade  from  the  region.^ 

(b)  The  regions  from  which  the  ten  (10)  members  of  the  Trade 
shall  be  elected  are  hereby  established  as  follows: 

Region  No.  L — INlaine,  New  Hampshire.  Vermont,  Massachusetts, 
Connecticut,  and  Rhode  Island. 

Region  No.  2. — New  York,  Pennsylvania,  New  Jersey,  Delaware, 
Maryland,  and  District  of  Columbia. 

Region  No.  3. — Virginia,  North  Carolina,  South  Carolina,  (jeorgia, 
Florida,  Alabama,  Mississippi,  Tennessee,  Kentucky,  and  West 
Virginia. 

Region  No.  I^. — Ohio,  Indiana,  Illinois,  AVisconsin  (excluding 
Superior),  and  Michigan. 

Region  No.  6. — Minnesota ;  Superior,  Wisconsin ;  North  Dakota ; 
South  Dakota ;  and  Montana. 

Region  No.  0. — Missouri,  Iowa,  Nebraska,  and  Kansas. 

Region  No.  7. — Texas,  Louisiana,  Arkansas,  Oklahoma,  and  New 
Mexico. 

Region  No.  8. — Colorado,  Utali,  and  Wyoming. 

Region  No.  9. — Washington,  Oregon,  and  Idaho. 

Region  No.  10. — California,  Nevada,  and  Arizona. 

The  Chairman  shall  represent  the  territorial  possessions  of  the 
United  States. 

(c)  The  President  and  Vice-President  of  the  American  Warehouse- 
men's Association,  Merchandise  Division,  shall  be  Chairman  and 
Vice-Chairman  respectively  of  the  Code  Authority.  Pending  election 
of  the  other  members  of  the  Code  Authority  as  provided  for  in  (a) 
of  this  Section,  the  President  of  the  American  Warehousemen's 
Association,  Merchandise  Division,  shall  appoint  the  other  ten  mem- 
bers of  the  Authority,  with  the  approval  of  the  majority  of  the 
members  of  the  Executive  Connnittee  of  the  American  Warehouse- 
men's Association,  Merchandise  Division,  and  with  due  regard  for 
representation  of  Warehousemen's  Associations  in  each  respective 
region. 

The  ten  (10)  members  appointed  from  the  Trade  shall  serve  for  not 
more  than  sixty  (60)  days  from  the  effective  date  of  this  Code.  The 
elected  members  shall  serve  for  a  period  of  one  year.  Election  of 
such  members  shall  be  held  annually. 

(d)  Each  Trade  association  directly  or  indirectly  i)articipating 
in  the  selection  or  activities  of  the  Code  Authority  shall : 

1.  Impose  no  inequitable  restrictions  on  membership,  and 

1  See  paragraph  2  of  order  approvinR  (his  Codo. 
36420  "—313-144 34 2 


502 

2.  Submit  to  the  Administrator  true  copies  of  its  articles  of  asso- 
ciation, bylaws,  regulations,  and  any  amendments  when  made  thereto, 
together  with  such  other  information  as  to  membership,  organiza- 
tion, and  activities  as  the  Administrator  may  deem  necessarj'  to 
effectuate  the  purposes  of  the  Act. 

(e)  In  order  that  the  Code  Authority  shall  at  all  times  be  truly 
representative  of  the  Trade  and  in  other  respects  comply  with  the 
provisions  of  the  Act,  the  Administrator  may  provide  such  hearings 
as  he  may  deem  proper;  and  thereafter  if  he  shall  find  that  the  Code 
Authority  is  not  truly  representative  or  does  not  in  other  respects 
comply  with  the  provisions  of  the  Act,  he  may  require  an  appro- 
priate'modification  in  the  method  of  selection  of  the  Code  Authority. 

(f)  The  Chairman,  Vice  Chairman,  and  Secretary  of  the  Code 
Authority  shall  constitute  the  Administrative  Committee,  which 
shall  exercise  such  authority  and  perform  such  duties  as  may  be 
delegated  to  it  by  the  Code  Authority. 

(g)  The  Treasurer  of  the  American  Warehousemen's  Association, 
Merchandise  Division,  shall  serve  as  the  Treasurer  of  the  Code 
Authority. 

(h)  The  Executive  Secretary  of  the  American  Warehousemen's 
Association,  Merchandise  Division,  shall  serve  as  the  Secretary  of 
the  Code  Authority. 

Sec.  2,  (a)  The  Code  Authority  shall  have  the  following  duties 
and  powers  to  the  extent  permitted  by  the  Act :  to  make  such  rules 
and  regulations;  procure  such  reports  and  other  information;  ap- 
point such  committees;  and  employ  or  designate  such  agents  and 
delegate  to  them  such  duties  and  authority,  as  may  be  necessary. 

(b)  If  the  Administrator  shall  determine  that  anj'^  action  of  a 
code  authority  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  days  to  afford  an 
opportunity  for  investigation  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. 

(c)  jNTothing  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,  exercis- 
ing 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.  3.  Members  of  the  Trade  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  fornuilation  and  adminis- 
tration. The  Code  Authority  shall  establish,  assess  and  collect  from 
each  suliscriber  to  this  Code  an  initial  annual  fee,  which  shall  become 
applicable  and  due  upon  the  effective  date  of  this  Code,  as  follows: 
$24.00,  plus  $12.00  for  each  10,000  square  feet  or  fraction  thereof, 
devoted  to  the  conduct  of  the  merchandise  warehousing  business  as 


o 


50 

defined  in  Article  II,  subject  to  a  maximum  annual  fee  of  $264.00 
for  an}'  one  merchandise  warehouseman. 

Due  and  timelv  notice  shall  be  sent  to  every  member  of  the  Trade 
whose  name  can  be  ascertained  after  dilifjent  search  that  the  require- 
ments of  this  section  must  be  complied  with  before  such  member  will 
be  entitled  to  a  vote  in  the  nomination  and  election  of  his  Trade 
member  of  the  Code  Authority. 

Adjustments  in  the  amount  of  fees  may  be  made  from  time  to 
time  ijy  the  Code  Authority,  subject  to  review  by  the  Administrator, 
on  the  basis  of  capacity,  volume  of  business,  and/or  such  other  factors 
as  may  be  equitable  to  be  taken  into  consideration. 

Article  VII — Certificate  of  Participation 

Section  1.  Upon  payment  of  the  fee  prescribed  in  Article  VI, 
Section  3,  each  member  of  the  Trade,  shall  receive  from  the  Code 
Authority  a  Certificate  of  Participation,  serially  numbered,  showing 
that  he  is  a  subscriber  to  this  Code. 

Sec.  2.  Commencing-  thirty  (30)  days  after  the  effective  date  of 
this  Code,  every  warehouse  receipt  issued  by  each  member  of  the 
Trade  shall  bear  a  notation  showing  his  certificate  number  and 
reading:  "Subscribed  to  Merchandise  Warehousing  Trade  Code. 
Certificate  No.  — ." 

Sec.  3.  To  further  the  purposes  of  Title  I  of  the  Act,  each  mem- 
ber of  the  Trade  may  otherwise  display  similar  evidence  of  his  par- 
ticipation in  this  Code. 

Article  VIII — Standardization  of  Warehousing  Trade  Practices 

Each  member  of  the  Trade  shall  post  in  a  conspicuous  place,  ac- 
cessible to  view,  the  following  section  : 

Section  1.  The  following,  the  Standard  Contract  Terms  and  Con- 
ditions, are  hereby  made  a  part  of  this  Code  of  Fair  Competition: 

"As  adopted  by  unanimous  vote  b}^  representatives  of  thv'^  shippers, 
bankers,  railway  men.  and  Avarehousemen  at  a  general  conference, 
April  30,  1926,  at  the  Department  of  Commerce,  Washington,  D.C., 
and  indorsed  October  30,  1926,  by  the  Department  of  Commerce. 

Section  1.  Tender  for  Stoi'agc. —  (a)  All  goods  for  storage  shall 
be  delivered  at  the  warehouse  properly  marked  and  i)acked  for 
handling.  The  storer  shall  furnish,  at  or  prior  to  such  delivery,  a 
manifest  showing  marks,  brands,  or  sizes  to  be  kept  and  accounted 
for  separately,  and  the  class  of  storage  desired;  otherwise  the  goods 
may  be  stored  in  bulk  or  assorted  lots,  in  freezer,  cooler,  or  general 
storage,  at  the  discretion  of  the  warehousemen,  and  will  be  charged 
for  accordingly. 

(b)  The  word  "lot"  as  used  herein  means  the  unit  or  units  of 
goods  for  which  a  separate  account  is  to  be  kept  by  the  warehouse- 
man. Delivery  of  all  or  any  units  of  a  lot  shall  be  made  without 
subsequent  sorting  except  by  special  arrangement  and  subject  to  a 
charge. 

(c)  The  warehouseman  undertakes  to  store  and  deliver  goods  only 
in  the  packages  in  which  they  are  originally  received. 


504 

Sec.  2.  Storage  period. —  (a)  All  goods  are  stored  on  a  month-to- 
month  basis,  unless  otherwise  provided.  A  storage  month  shall  ex- 
tend from  a  date  in  one  calendar  month  to,  bnt  not  including,  the 
same  date  of  the  next  and  all  succeeding  calendar  months,  but  if 
there  be  no  corresponding  date  in  the  next  succeeding  calendar 
month,  it  shall  extend  to  and  include  the  last  day  of  that  month. 
When  the  last  day  of  a  final  storage  month  falls  on  Sunday  or  a 
legal  holiday,  the  storage  month  shall  be  deemed  to  expire  on  the 
next  succeeding  business  day. 

(b)  Except  where  other  procedure  is  provided  by  the  warehouse 
receipts  act,  the  warehouseman  may,  upon  Avritten  notice  to  the 
storer  of  record  and  to  any  other  person  known  by  the  warehouse- 
man to  claim  an  interest  in  the  goods,  require  the  removal  of  any 
goods  by  the  end  of  the  next  succeeding  month.  Such  notice  shall 
be  given  by  delivery  in  person  or  by  registered  letter  addressed  to 
the  last  known  place  of  business  or  abode  of  the  person  to  be  notified. 

Sec.  3,  Insurance.,  Storage  Rates.,  Expiration.,  and  Transfers. — 
(a)  All  charges  for  storage  are  on  a  month-to-month  basis  unless 
otherwise  provided.  Charges  for  any  particular  lot  shall  begin  at 
the  receipt  of  the  first  unit  of  that  particular  lot  in  store  and  shall 
continue  and  include  the  storage  month  during  which  the  last  unit 
of  the  particular  lot  is  deliverecl.  Charges  shall  be  made  on  the  basis 
of  the  maximum  number  of  units  in  any  particular  lot  in  store  during 
a  storage  month.  All  charges  for  storage  are  due  on  the  first  day 
of  a  storage  month,  and  all  other  charges  are  due  when  incurred. 

(b)  Instructions  to  transfer  goods  on  the  books  of  the  Avarehouse- 
man  are  not  effective  until  delivered  to  and  accepted  by  him,  and  all 
charges  up  to  the  time  transfer  is  made  are  chargeable  to  the  storer 
of  record.  If  a  transfer  involves  rehandling  the  goods,  it  will  be 
subject  to  a  charge. 

(c)  The  warehouseman  reserves  the  right  to  move,  at  his  own  ex- 
pense of  transfer,  and  upon  notice  sent  by  registered  mail  to  the 
storer  of  record  and  to  the  last  known  holder  of  the  negotiable  ware- 
house receipt,  any  goods  in  storage  from  any  room  of  the  Avarehouse 
in  Avhich  they  may  be  stored  to  any  other  of  his  rooms  or  warehouses, 
but  if  such  storer  or  holder  takes  delivery  of  his  goods  in  lieu  of 
transfer,  no  storage  charges  shall  be  made  for  the  current  storage 
month. 

(d)  When  rates  are  quoted  by  Aveight,  they  Avill,  unless  otherwise 
specified,  be  computed  on  gross  w^eight,  and  2,000  pounds  shall  consti- 
tute a  ton. 

(e)  Goods  are  not  insured  nor  do  storage  rates  include  insurance 
unless  so  specified  in  Avriting.  (Adopted  Avith  the  understanding 
that  in  any  State  requiring  insurance  by  statute  the  Avords  "  or  re- 
quired by  statute  *'  Avould  be  considered  a  part  of  the  standard  terms 
and  conditions.) 

Sec.  4.  Handling. —  (a)  Handling  charges  cover  the  ordinary  labor 
and  duties  incidental  to  receiving  goods  at  Avarehouse  door,  storing 
and  delivering  to  Avarehouse  door,  but  do  not  include  unloading  or 
loading  of  cars,  A^ehicles,  or  vessels,  unless  so  specified.  Handling 
charges  will  be  billed  with  the  storage  for  the  first  month. 


505 

(b)  Goods,  at  the  request  of  a  storer,  received  or  delivered  during 
other  than  usual  business  hours  will  be  subject  to  an  additional 
charge. 

Sec.  5.  Car  Loading  and  TJ nloading . —  (a)  Charges  for  unloading 
or  loading  of  cars  include  use  of  switch  track,  labor  required  to  or 
from  warehouse  door,  and  billing  of  car. 

(b)  Dunnage  and  fastenings  supplied  by  the  warehouseman  and 
used  in  loading  out  cars  are  chargeable  to  the  storer. 

(c)  Any  additional  costs  incurred  by  the  warehouseman  in  unload- 
ing cars  containing  damaged  goods  are  chargeable  to  the  storer. 

(d)  The  warehouseman,  unless  he  has  failed  to  exercise  due  care 
and  diligence,  shall  not  be  responsible  for  demurrage,  nor  for  delays 
in  unloading  inbound  cars,  nor  for  delays  in  obtaining  cars  for 
outbound  shipments. 

Sec.  6.  Delivei'nj  Reqwirenients. —  (a)  No  goods  shall  be  delivered 
or  transferred  except  upon  receipt  by  the  warehouseman  of  complete 
instructions  properly  signed  by  the  storer. 

(b)  When  a  negotiable  receipt  has  been  issued,  no  goods  covered 
by  that  receipt  shall  be  delivered  or  transferred  on  the  books  of  the 
warehouseman  unless  the  receipt,  properly  indorsed,  is  surrendered 
for  cancellation  or  for  indorsement  of  partial  delivery  thereon. 

(c)  When  goods  are  ordered  out,  a  reasonable  time  shall  be  given 
the  warehouseman  to  carry  out  instructions ;  and  if  he  is  unable,  due 
to  causes  beyond  his  control,  to  effect  delivery  before  expiring 
storage  dates,  the  goods  will  be  subject  to  charges  for  another  storage 
month ;  except  when  the  warehouseman  has  given  notice  in  accordance 
with  the  provisions  of  section  2  (b),  or  because  of  fire,  acts  of  God, 
war,  public  enemies,  seizure  under  legal  process,  strikes  or  lockouts, 
riots  and  civil  commotions,  if  he  is  unable,  due  to  causes  beyond 
his  control,  to  effect  delivery  before  the  expiring  storage  date,  the 
goods  shall  be  subject  to  storage  charges  only  for  that  part  of  the 
month  during  which  the  goods  remain  in  store. 

Sec.  7.  Bonded  Stores. — A  charge  in  addition  to  regular  rates 
will  be  made  for  merchandise  in  bond. 

Sec.  8.  Minimum  Charges. — A  minimum  charge  will  be  assessed 
for  storage,  handling,  and  other  services. 

Sec.  9.  Extra  Service  (a)  Extra  services  in  the  interest  of  the 
storer,  such  as  special  warehouse  space,  material,  drayage,  repairing, 
coopering,  sampling,  weighing,  repiling,  inspection,  physical  ware- 
house checking,  compiling  stock  statements,  collections,  revenue 
stamps,  reporting  marked  weights  or  numbers,  handling  railroad 
expense  bills,  etc.,  are  chargeable  to  the  storer. 

(b)  Stock  statements  submitted  in  duplicate  by  the  storer  will 
be  checked  Avith  the  books  of  the  warehouseman  Avithout  charge. 

(c)  Shipping  includes  marking,  tagging,  billing,  procuring,  and 
forwarding  bills  of  lading,  and  is  chargeable  to  the  storer. 

(d)  Freight  and  other  disbursements  made  on  behalf  of  the  storer 
are  due  and  paj^able  on  demand  and  subject  to  interest  from  date 
billed  by  the  warehouseman. 

(e)  Storers,  including  holders  of  negotiable  receipts,  may,  subject 
to  insurance  regulations  and  reasonable  limitations,  have  access  to 
their  goods  in  store  when  accompanied  by  a  warehouse  employee 
whose  time  is  chargeable  to  the  storer. 


506 

Sec.  10.  Liability. — (a)  The  responsibility  of  a  warehouseman,  in 
the  absence  of  written  provisions,  is  the  reasonable  care  and  diligence 
required  by  law. 

(b)  Perishable  goods,  or  goods  which  are  susceptible  to  damage 
through  temperature  changes  or  other  causes  incident  to  general  stor- 
age, are  accepted  in  general  storage  only  at  owner's  risk  for  such 
damages  as  might  result  from  general  storage  conditions. 

Sec.  11.  Schedule  of  Charges. — Whenever  provision  is  made  in 
these  standard  contract  terms  and  conditions  for  a  charge  or  charges 
by  the  warehouseman,  such  charge  or  charges  will  conform  to  the 
warehousemen's  tariff  in  effect  at  the  time  the  charge  accrues  or  the 
service  is  performed,  except  that  no  increase  in  charges  within  the 
direct  control  of  the  warehouseman  will  be  made  on  goods  that  are 
in  storage  without  a  30-day  notice  mailed  to  the  storer  of  record  or 
the  last-known  holder  of  a  negotiable  warehouse  receipt. 

Sec.  12.  {a)  The  Standard  Contract  Terms  and  Conditions  desig- 
nate each  of  the  following  as  a  separate  and  distinct  warehousing 
service : 

Handling 

Storage 

Providing  special  warehouse  space 

Supplying  material 

Repairing  or  coopering 

Sampling 

Weighing 

Repiling 

Inspection 

Special  physical  warehouse  checking 

Compiling  special  stock  statements 

Making  collections  of  money  in  behalf  of  customer 

Furnishing  revenue  stamps 

Reporting  marked  weights  or  numbers 

Payment  of  freight  charges  in  behalf  of  customer 

Shipping 

(b)  Other  separate  and  distinct  warehousing  services  are: 
Drayage 

Distribution  of  "  pool  "  cars 
Providing  office  space 

Providing  office  service;  special  telephone  service,  invoicing 
for  customers,  etc. 

Providing  extra  labor 

(c)  Not  to  name  an  adequate  and  separate  rate  or  charge  for 
each  of  tlie  services  listed  in  subsection  (a)  of  this  Section  12  when 
making  quotations,  or  not  assess  an  adequate  rate  or  charge  (whether 
or  not  there  is  an  existing  rate  or  charge)  for  each  of  the  services 
listed  in  subsections  (a)  and  (b)  of  this  Section  12  when  performed, 
shall  be  deemed  a  violation  of  this  code. 

Suth  adequate  rate  or  charge  shall  not  be  less  than  the  loAvest 
reasonable  cost  of  the  most  efficient  and  lowest  cost  operator  in 
the  locality  for  the  type  of  service  for  which  the  rate  or  charge  is 
operative.  Such  reasonable  cost  shall  comj^rehend  fair  and  reason- 
able rates  of  pay  to  labor  and  include  all  other  items  of  expense  and 
overhead  as  determined  by  cost-accounting  methods  recognized  in 


507 

the  Trade  and  approved  by  the  Code  Authority,  subject  to  the 
approval  of  the  Administrator.  Such  reasonable  cost  may  be  ap- 
proved or  modified  in  conformity  with  the  meaning  of  this  Section 
by  the  Code  Authority  after  due  notice  to  and  hearing  for  the 
members  of  the  Trade  in  the  locality,  subject  to  review  and  modifi- 
cation by  the  Administrator. 

Abticle  IX — Takitts 

Within  thirty  (30)  days  after  the  eifective  date  of  this  Code, 
each  member  of  the  Trade  shall  publish,  post  in  a  conspicuous  place 
open  to  public  inspection,  and  file  with  the  Code  Authority  a  tariff 
containing  all  i-ates,  charges,  terms  and  conditions  covering  his 
warehousing  familities  and  services,  which  rates,  charges,  terms, 
or  conditions  shall  not  be  changed  except  upon  the  publication,  post- 
ing, and  filing  of  a  new  or  supplemental  tariff,  to  become  effective  ten 
(10)  days  thereafter. 

Article  X — Ixtokmation  and  Reports 

Section  1.  Each  member  of  Trade  shall  keep  his  records  and 
boolvs  of  account  in  such  form  as  to  facilitate  furnishing  the  informa- 
tion that  the  Code  Authority  may  require,  subject  to  the  approval  of 
the  Administrator. 

Sec.  2,  In  addition  to  the  information  required  to  be  submitted 
to  the  Code  Authority,  there  shall  be  furnished  to  government 
agencies  such  statistical  information  as  the  Administrator  may  deem 
necessary  for  the  purposes  recited  in  Section  3  (a)  of  the  Act. 

Sec.  3.  Information  determined  by  the  Code  Authority  to  be  of  a 
confidential  nature  shall  be  strictly  treated  as  such  by  any  member 
of  the  Code  Authority  to  whose  attention  such  information  may  come. 

Article  XI — Unfair  Trade  Practices 

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

1.  To  describe  the  merchandise  warehousing  business,  the  method 
used,  facilities  furnished  or  services  rendered,  or  to  quote  rates  or 
charges,  or  to  state  terms  or  conditions,  in  a  manner  that  is  mis- 
representative  or  that  has  a  tendency  or  capacity  to  deceive  custo- 
mers or  prospective  customers  as  the  true  character  thereof  in  any 
particular. 

2.  To  offer  or  make  confidential  or  secret  rates,  charges,  terms, 
or  conditions,  or  to  offer  or  make  in  any  manner  or  by  any  device 
whatever,  more  advantageous  rates,  charges,  terms,  or  conditions, 
to  certain  favored  customers  or  prospective  customers  than  are  offered 
or  made  to  all  customers  or  prospective  customers. 

3.  To  defame  competitors  by  falsely  imputing  to  them  dishonorable 
conduct,  inability  to  perform  contracts,  questionable  credit  standing, 
or  by  other  false  representations  or  by  the  false  disparagement  of 
the  grade  or  quality  of  their  service. 

4.  To  subsidize  directly  or  indirectly,  or  offer  to  subsidize,  cus- 
tomers, or  prospective  customers,  or  those  representing  them,  by 


508 

contributions  or  subsidies  of  money,  services,  or  other  gratuities 
or  things  of  value  in  the  form  of  rebates,  special  concessions,  pay- 
ment of  claims  for  loss  or  damage  known  to  be  fraudulent,  or  in  any 
form,  for  the  purpose  or  with  the  effect  of  inducing  them  to  patronize 
or  deal,  or  contract  to  patronize  or  deal,  with  the  donor  or  of  causing 
them  to  refrain  from  patronizing  or  dealing,  or  contracting  to 
patronize  or  deal,  with  the  donor's  competitors. 

5.  To  issue  or  aid  in  issuing  a  warehouse  receipt  when  the  products 
for  which  such  receipt  is  issued  have  not  been  actually  received  by. 
or  are  not  under  the  actual  control  of,  the  one  issuing  such  receipt 
at  the  time  of  the  issuance  thereof. 

6.  To  issue  or  aid  in  issuing  a  negotiable  warehouse  receipt  for 
stored  products  of  which  the  one  issuing  such  receipt  is  owner,  either 
solely  or  jointly  or  in  common  with  others,  without  stating  in  said 
receipt  the  fact  of  such  ownership. 

7.  To  deliver  part  or  all  of  any  lot  of  stored  products  for  which 
a  negotiable  warehouse  receipt,  the  negotiation  of  which  would 
transfer  the  right  to  the  possession  of  such  products,  has  been  issued 
and  is  outstanding  and  uncanceled,  without  obtaining  the  possession 
of  such  receipt,  or  taking  up  and  canceling  the  same,  or  placing  a 
statement  plainly  upon  it  of  what  products  have  been  delivered, 
at  or  before  the  time  of  the  delivery  of  such  products,  except  where 
delivery  thereof  is  made  pursuant  to  an  order  of  a  court  of  compe- 
tent jurisdiction  or  in  compliance  with  a  sale  made  to  satisfy  a  lien 
thereon. 

8.  To  issue  fraudulently  or  aid  in  fraudulently  issuing  a  ware- 
house receipt  for  stored  products  which  contains  any  false  statement. 

9.  To  quote  or  charge  a  rate  that  is  a  departure  from  his  tariff 
as  provided  in  Article  IX. 

10.  To  use  any  subterfuge  to  evade  any  provisions  of  this  Code, 
such  as  (but  without  limitation)  renting  or  offering  to  rent  ware- 
house space  under  such  terms  or  conditions  as  would  defeat  the  pur- 
poses of  this  Code. 

Nothing  in  this  Code  shall  limit  the  effect  of  any  adjudication  by 
the  Courts  or  holding  by  the  Federal  Trade  Commission  on  com- 
plaint, finding,  and  order,  that  any  practice  or  method  is  unfair, 
providing  that  such  adjudication  or  holding  is  not  inconsistent  with 
any  provisions  of  the  Act  or  of  this  Code. 

Article  XII — Modification  or  This  Code 

Section  1.  This  Code  and  all  the  provisions  thereof  are  expressly 
made  subject  to  the  right  of  the  President,  in  accordance  with  the 
provision  of  Section  10  (b)  of  the  National  Industrial  Recovery 
Act,  from  time  to  time  to  cancel  or  modify  any  order,  approval, 
license,  nde,  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  im- 
posed by  him  upon  his  approval  thereof. 

Sec.  2.  It  is  contemj^lated  that  certain  specialized  branches  of 
the  Trade,  by  reason  of  their  peculiar  characteristics,  may  require 
separate  subdivisions  of  this  Code,  or  subsidiary  codes,  and  that 


509 

such  subdivisions  or  subsidiary  codes  not  inconsistent  with  the  gen- 
eral provisions  and  intent  of  this  Code  may,  with  the  approval  of  the 
Code  Authority  and  of  the  Administrator,  be  made  a  part  of  this 
Code. 

Sec.  3.  This  Code,  except  as  to  provisions  required  by  the  Act, 
may  be  modified  on  the  basis  of  experience  or  changes  in  circum- 
stances, such  modification  to  be  based  upon  application  to  the  Ad- 
ministrator and  such  notice  and  hearing  as  he  shall  specify,  and  to 
become  effective  on  approval  of  the  Administrator. 

Article  XIII — ]\Ionopolies 

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,  or  to  permit  or  encourage  unfair 
competition. 

Article  XIV — Effective  Date 

This  Code  shall  become  effective  on  the  fourteenth  day  after  its 
approval  by  the  President. 


Approved   Code   No.   232. 
Registry  No.  1715-01. 


o 


Approved  Code  No.  233 
CODE  OF  FAIR  COMPETITION 

FOR  THE 

RAILWAY  BRASS  CAR  AND  LOCOMOTIVE 
JOURNAL  BEARINGS  AND  CASTINGS 
MANUFACTURING   INDUSTRY 

As  Approved  on  January  29,  1934 


ORDER 

APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

RAILWAY  BRASS  CAR  AND  LOCOMOTIVE 
JOURNAL  BEARINGS  AND  CASTINGS 
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  xVct,  approved  June  16,  1933,  for  approval  of  a  Code  of 
Fair  Competition  for  the  Railway  Brass  Car  and  Locomotive  Jour- 
nal Bearings  and  Castings  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 : 

NOAV,  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  Decejnber 
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  hereb}'^  approved,  subject  to  the 
following  condition : 

36417° 313-142 34  (511) 


512 

(1)  That  the  By-Laws  of  the  Association  of  Manufacturers  of 
Railway  Brass  Car  and  Locomotive  Journal  Bearings  and  Castings 
shall  be  changed  in  accordance  with  the  report  of  the  Legal  Division 
dated  December  20.  1933.  within  thirty  (30)  days  of  approval. 

Hugh  S.  Johxsox, 
Admimstratoi'  for  Industrial  Recovery. 
Approval  recommended : 
Malcolm  Muir, 

Di vision  Administrator. 
Washixgtox.  D.C, 

Janiuuy  29. 19-34. 


The  Presidext, 

The  White  House. 
Sir:  This  is  a  report  on  the  Code  of  Fair  Competition  proposed 
for  the  Railway  Brass  Car  and  Locomotive  Journal  Bearings  and 
Castings  Manufacturing  Industry,  and  on  the  hearing  conducted 
thereon  in  Washington,  D.C.,  on  December  6.  1933,  in  accordance 
with  the  provisions  of  the  National  Industrial  Recovery  Act. 

RESr^IE   OF   LABOR   PROMiSIOXS 

The  Code  provides  a  normal  work  day  of  eight  (8)  hours  for  all 
employees  and  no  employee  shall  work  in  exce^^s  of  forty  (40)  hours 
per  week,  except  that  during  peak  production  periods  employees  may 
work  not  to  exceed  forty-eight  (48)  hours  per  week  for  not  more  than 
four  (4)  weeks  in  any  six  (6)  months'  period.  Time  and  one  half 
shall  be  paid  for  work  in  excess  of  eight  (8)  hours  per  day  or  forty 
(40)  hours  per  week. 

Xo  employee  shall  be  paid  less  than  at  the  rate  of  forty  (40)  cents 
per  hour  in  the  Xorth  and  thirty-two  (32)  cents  per  hour  in  the 
South.  These  minimum  wages  shall  apply  to  common  labor;  other 
classes  of  labor,  includins:  piece  workers,  shall  be  compensated  at  rates 
above  these  minima.  Office  employees  shall  be  paid  not  less  than  fif- 
teen dollars  ($15.00)  per  week,  except  that  a  limited  number  of  office 
boys  or  girls  may  be  paid  not  less  than  twelve  dollars  ($12.00)  per 
week. 

There  are  no  female  production  employees,  and  no  person  under 
eighteen  (18)  years  of  age  may  be  employed  in  the  Industry. 

GEXERAL   STATE3IEXT 

This  Industry  is  engaged  in  the  manufacture  of  brass  and  bronze 
steam  and  electric  locomotive  and  railway  car  journal  bearings  and 
castings.  It  includes  the  relining  of  worn  journal  bearings  and 
castings.  The  members  of  the  Association  of  Manufacturers  of  Rail- 
way Brass  Car  and  Locomotive  Journal  Bearings  and  Castings,  tiie 
applicant  group,  manufacture  ninety-seven  percent  (97%)  of  the 
products  of  the  Industry  which  are  sold  to  customers. 

The  following  statistics  indicate  the  magnitude  and  the  condition 
of  the  Industry : 


1929 


Invested  capit^il. 


Sales §37.161.761 

Sales tonnage-.  1 156,246. 882 

Number  employees_..» I  2,609 

Average  nionthiy  pay  roll :      S1Z490 

Minimum  wase,  North i  O.-IO 

Minimum  wage.  South i  0.25 

Maximum  hours I  52 


S20,S2S.32S   ?1S.226.763 


S7. 307, 159 

1  85,252,360 

1     1.672 

$159,344 

0.35 

0.20 

52 

Ausust 
1933 


S19.  S62. 610 

$1. 6i2, 021 

13, 100. 000 

2,100 

$215, 816 

a40 
a30 

40 


(513) 


514 


It  is  estimated  that  operations  under  the  Code  will  effect  an 
increase  over  the  figures  for  1932  of  approximately  twenty-three 
percent  (23%)  in  the  number  of  employees  and  of  eighteen  percent 


(18%)  in  the  total  pay  rolls. 


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  Kecovery  Act,  including 
removal  of  obstructions  to  the  free  flow  of  interstate  and  foreign 
connnerce  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  {^auctions  and  supervision,  by  elim- 
inating unfair  competitive  practices,  by  promoting  the  fullest  possi- 
ble utilization  of  the  present  productive  capacit}-  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  Avith  the  perti- 
nent pro\asions  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  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  riglit  to  be  heard  prior  to  approval  of 
said  Code. 

For  these  reasons,  therefore,  I  have  approved  this  Code,  subject  to 
the  following  condition : 

(1)    That  the  By-Laws  of  the  Association  of  Manufacturers  of 
Railway  Brass  Car  and  Locomotive  Journal  Bearings  and  Castings 
shall  be  changed  in  accordance  with  the  report  of  the  Legal  Division 
dated  December  20,  1933,  within  thirty  (30)  days  of  approval. 
Respectfully, 

Hugh  S.  Johnson, 

Administrator. 
Januaby  29,  1934. 


CODE   OF  FAIR   COMPETITION 

FOR  THE 

RAILWAY  BRASS  CAR  AND  LOCOMOTIVE  JOURNAL 
BEARINGS  AND  CASTINGS  MANUFACTURING 
INDUSTRY 


Ahticle  I — Purposes 

To  effectuate  the  policies  of  Title  I  of  the  National  Industrial 
Recovery  Act,  the  following  provisions  are  submitted  as  a  Code  of 
Fair  Competition  for  the  Railway  Brass  Car  and  Locomotive  Jour- 
nal Bearino;s  and  Castings  Manufacturing  Industry,  and  upon  ap- 
proval by  the  President  shall  be  the  standard  of  fair  competition  for 
Buch  Industry  and  shall  be  binding  upon  every  member  thereof. 

Article  II — Definitions 

The  term   "  Industry "  as  used   herein   means   and   includes   the 
business  of  producing  in  the  United  States, 
(1)  Brass  and/or  bronze 

(a)  wearing  metal  castings 

(b)  steam  metal  castings 

(c)  journal  bearings,  lined  or  unlined 

all  for  steam  and  electric  railroad  cars  and  locomotives  (except  as 
produced  by  a  company  engaged  in  building  locomotives  in  plants 
where  such  locomotives  are  built,  and  except  rough  castings  for  street 
railways)  ;  the  term  shall  include  such  related  branches  or  subdivi- 
sions as  may  from  time  to  time  be  included  under  the  provisions  of 
this  Code  by  the  President  after  such  notice  and  hearing  as  he  may 
prescribe.  The  production  of  such  castings  consists  principally  of 
the  conversion  of  scrap  metals  of  the  railroads'  own  accumulation 
supplied  to  the  "  members  of  the  industry  "  for  conversion  into  cast- 
ings as  above  defined  and  the  relining  of  Avearing  metal  castings 
removed  from  service  by  the  railroads  and  supplied  to  the  "  members 
of  the  industry  "  for  that  purpose. 

The  term  "  Member  of  the  Industry  ''  includes,  but  without  lim- 
itation, 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. 

The  word  "Association  "  as  hereinafter  used,  means  the  Associa- 
tion of  Manufacturers  of  Railway  Brass  Car  and  Locomotive  Jour- 
nal Bearings  and  Castings,  Room  721,  80  East  Jackson  Boule^'ard, 
Chicago,  Illinois.* 


♦  See  section  1  of  paragraph  2  of  order  approving  this  Code. 

(515) 


516 

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

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

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

Article  III — Hours 

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  herein  otherwise  provided.  A  normal  work  day  shall  not 
exceed  eight  (8)  hours. 

Sec.  2.  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  $35.00  per  week. 

Sec.  3.  No  employer  shall  knowingly  permit  any  employee  to  work 
for  any  time  which,  when  totaled  with  that  already  performed  with 
any  other  employer  or  employers  in  the  Industry,  exceeds  the 
maximum  permitted  herein. 

Sec.  4.  The  maximum  hours  fixed  in  Section  1  of  this  Article  shall 
not  apply  to  any  employee  on  emergency  maintenance  or  emergency 
repair  work  involving  break-downs  or  protection  of  life  or  property, 
but  in  any  such  special  case,  at  least  one  and  one  half  (IV2)  times 
the  regular  rate  shall  be  paid  for  hours  worked  in  excess  of  the 
maximum  provided  in  Section  1. 

Sec.  5.  The  maximum  hours  fixed  in  Section  1  of  this  Article  shall 
not  apply  for  four  (4)  weeks  in  any  twenty-six  (26)  weeks'  period, 
during  which  overtime  shall  not  exceed  eight  (8)  hours  in  any  one 
week.  In  any  such  special  case,  at  least  one  and  one  half  (11/2) 
times  the  regular  rate  shall  be  paid  for  hours  worked  in  excess  of 
eight  (8)  hours  in  any  tAventy-four  (24)  hour  period,  or  in  excess 
of  forty  (40)  hours  in  any  seven  (7)  day  period. 

Sec.  6.  Watchmen  shall  not  be  iDcrmitted  to  work  in  excess  of 
fifty-six  (56)  hours  per  week. 

Seo.  7.  The  maximum  hours  fixed  in  Section  1  of  this  Article 
shall  not  apply  to  melters,  engineers,  and  firemen  who  may  be  per- 
mitted to  work  not  in  excess  of  one  (1)  hour  per  day  above  the 
maximum  hours  fixed  in  Section  1  of  this  Article,  provided  that 
at  least  one  and  one  half  (IV2)  times  the  regular  rate  shall  be  paid 
for  hours  worked  in  excess  of  the  maximum  provided  in  Section  1. 

Article  IV — Wages 

Section  1.  Minimujn  Wages. — No  employee  shall  be  paid  in  any 
pay  period  less  than  at  the  rate  of  forty  cents  (40^)  per  hour  in  the 
North  and  thirty-two  cents  (32^*)  per  hour  in  the  South,  except  as 
otherwise  herein  provided.  These  minimum  wages  shall  apply  to 
common  labor ;  other  classes  of  labor,  including  piece  workers,  shall 


517 

be  compensated  at  rates  above  these  minima.  The  South  is  defined 
to  mean  the  States  of  North  Carolina,  South  Carolina,  Georgia, 
Florida,  Alabama,  Tennessee,  Arkansas,  Mississippi,  and  Louisiana. 
In  the  States  of  Virginia,  Texas,  and  Oklahoma  the  minimum  rate 
shall  be  thirty-five  cents  (35^)  per  hour.  The  North  comprises  all 
of  the  United  States  not  named  above. 

Sec.  2.  No  person  employed  in  clerical  or  office  Avork  shall  be  paid 
less  tlian  $15.00  per  week. 

(a)  Provided,  however,  that  office  boys  or  girls  may  be  paid  not 
less  than  80%  of  such  minimum  wage,  but  the  total  number  of  such 
office  boys  or  girls  at  such  reduced  rate  shall  not  exceed  in  any  cal- 
endar month  five  (5)  percent  of  the  total  number  of  all  employees 
covered  by  the  provisions  of  Section  2  of  this  Article,  provided  that 
each  such  employer  may  emplo}^  one  office  boy  or  girl. 

Sec.  3.  This  Article  establishes  a  minimum  rate  of  pay  which 
shall  apply,  irrespective  of  whether  an  employee  is  actually  com- 
pensated on  a  time-rate,  piecework,  or  other  basis. 

Sec.  4.  No  emplo5^ee  now  emploj^ed  at  a  rate  in  excess  of  the  mini- 
mum shall  be  discharged  and  reemployed  at  a  lower  rate  for  the 
purpose  of  evading  the  provisions  of  this  Code. 

Sec.  5.  Based  upon  changes  in  minimum  pay  necessitated  by  the 
foregoing  paragraphs  of  this  Article,  each  employer  shall  in  each 
establishment  make  fair  and  equitable  readjustment  of  all  pay  sched- 
ules. Members  of  the  Industry  shall  report  to  the  Code  Authority, 
within  ninety  (90)  days,  all  such  readjustments  whether  made  prior 
to  or  subsequent  to  the  approval  of  this  Code. 

Sec.  6.  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 
obtains  from  the  State  Authority  designated  by  the  United  States 
Department  of  Labor  a  certificate  authorizing  his  employment  at 
such  wages  and  for  such  hours  as  shall  be  stated  in  the  certificate. 
Each  employer  shall  file  with  the  Code  Authority  a  list  of  all  such 
persons  employed  by  him. 

Article  V — General  Labor  Provisions 

Section  1.  No  person  under  eighteen  (18)  years  of  age  shall  be 
employed  in  the  Industry. 

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

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

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


518 

Sec.  '6.  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. 

Sec.  4.  Every  emj^loyer  shall  provide  for  the  safety  and  health 
of  his  employees  at  the  place  and  during  the  hours  of  their  employ- 
ment in  accordance  with  State  and/or  Federal  Regulations. 

Sec.  5.  No  provisions  in  this  Code  shall  supersede  any  State  or 
Federal  law  which  imposes  more  stringent  requirements  on  employ- 
ers as  to  age  of  employees,  wages,  hours  of  work,  or  as  to  safety, 
health,  sanitary,  or  general  working  conditions,  or  insurance  or  fire 
protection,  than  are  imposed  by  this  Code. 

Sec.  6.  All  employei-s  shall  post  complete  copies  of  this  Code  in 
conspicuous  places  accessible  to  all  employees. 

Article    VI — Organization,    Powers,    and    Duties    of    the    Code 

Authority 

Section  1.  Organization. — There  shall  forthwith  be  established  a 
Code  Authority  consisting  of  five  (5)  members  to  be  elected  by  the 
members  of  the  Industry  who  assent  to  this  Code,  the  method  of  elec- 
tion to  be  determined  by  the  Code  Committee  of  the  Association,  sub- 
ject to  the  approval  of  the  Administrator.  In  addition  the  Admin- 
istrator may  appoint  not  to  exceed  three  (3)  members  to  the  Code 
Authority,  without  vote,  who  shall  serve  for  terms  of  from  six  (6) 
months  to  one  (1)  year,  and  whose  terms  of  appointment  shall  be  so 
arranged  that  they  do  not  expire  at  the  same  time. 

The  representatives  appointed  by  the  Administrator  shall  be  given 
notice  together  with  the  Administrator  and  may  sit  at  all  meetings 
of  the  Code  Authority. 

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,  may  require  an  ap- 
propriate modification  in  the  method  of  selection  of  the  Code 
Authority,  or  any  subcode  authority. 

Sec.  3.  Any  member  of  the  Industry  subject  to  the  jurisdiction  of 
this  Code  and  receiving  the  benefits  of  the  Code  and/or  the  benefits 
of  the  activities  of  the  Code  Authority  shall  pay  to  the  Code  Author- 
ity his  equitable  proportionate  share  of  the  expense  of  formulating 
and  putting  into  effect  and  administering  this  Code,  and  any  other 
costs  which  may  be  incurred  in  the  preparation  and/or  administra- 
tion of  the  Code  by  said  Code  Authority.  The  part  of  such  expenses 
which  shall  be  assessed  against  such  members  of  the  Industry  shall 
be  assessed  by  the  Code  Authority,  which  Authority  in  making  such 
assessment  shall  take  into  account  the  number  of  emplo5^ees,  the  vol- 
ume and  class  of  business  and  an  equitable  consideration  of  any  and 
all  matters  which  should  be  taken  into  account  in  determining  the 
proper  assessment. 

Failure  of  the  member  of  the  Industry  to  pay  any  such  assess- 
ment for  a  period  of  thirty  (30)  days  after  the  date  on  which  it 
shall  become  payable  shall  entitle  the  Code  Authority  to  deprive  such 
member  of  his  participation  in  the  administration  of  the  Code  as 


519 

therein  or  herein  provided,  and  such  member  shall  continue  to  be 
liable  for  his  proportionate  share  of  all  due  and  unpaid  assessments. 

Sec.  4.  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  exercising  reasonable  diligence  in  the  conduct 
of  his  duties  hereunder,  nor  be  liable  to  anyone  for  any  action  or 
omission  to  act  under  the  Code,  except  for  his  own  willful  mis- 
feasance or  nonfeasance. 

Sec.  5.  Any  action  taken  by  the  Code  Authority  relative  to  the 
administration  of  this  Code,  except  where  made  subject  to  the  ap- 
proval of  the  Administrator,  may,  in  the  discretion  of  the  Code 
Authority,  be  submitted  to  the  Administrator  for  approval  and  shall 
in  anj'  case  be  subject  to  the  disapproval  of  the  Administrator. 

Sec.  6.  Each  trade  or  industrial  association,  directly  or  indirectly 
participating  in  the  selection  or  activities  of  the  Code  Authority,  may 
impose  no  inequitable  restrictions  on  membersliip  and  shall  submit  to 
the  Administrator  true  copies  of  its  Articles  of  Association,  Bylaws, 
regulations,  and  any  amendments  wdien  made  thereto,  together  with 
such  other  information  as  to  membership,  organization,  and  activi- 
ties as  the  Administrator  may  deem  necessary  to  effectuate  the 
purposes  of  the  Act. 

Sec.  7.  Powers  and  Duties. — The  Code  Authority  shall  have  the 
following  powers  and  duties  in  addition  to  those  elsewhere  provided 
in  this  Code. 

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

(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  nece&sary  for  the  purposes 
recited  in  Section  3  (a)  of  the  Act,  which  information  and  reports 
shall  be  submitted  by  membei"s  to  such  administrative  and/or  govern- 
ment 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  ro})orts  shall  be  disclosed  to  any  other 
member  of  the  Industry  or  any  other  party  except  to  such  govern- 
mental agencies  as  may  be  directed  by  the  Administrator. 

(c)  To  receive  complaints  of  violations  of  this  Code,  make  in- 
vestigations thereof,  provide  hearings  thereon,  and  adjust  such  com- 
plaints, and  bring  to  the  attention  of  the  Administrator,  for  prose- 
cution, recommendations,  and  information  relative  to  unadjusted 
violations;  but  in  no  event  shall  the  Code  Authority  proceed  to 
prosecute  without  notice  to  and  approval  by  the  Administrator. 

(d)  To  use  such  trade  groups  and  other  agencies  as  it  deems 
proper  for  the  carrying  out  of  any  of  its  activities  provided  for 
herein,  and  to  pay  such  trade  groups  and  agencies  the  cost  thereof; 
provided  that  nothing  herein  shall  relieve  the  Code  Authority  of  its 
duties  or  responsibilities  under  this  Code,  and  that  such  trade  groups 
and  agencies  shall  at  all  times  be  subject  to  and  compl}^  with  the 
provisions  hereof. 


520 

(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 
the  NRA  Code  insignia  solely  by  those  employers  who  have  assented 
to  and  are  complying  with  this  Code. 

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

Article  VII — Modifications 

Section  1.  This  Code  and  all  the  provisions  thereof  are  expressly 
made  subject  to  the  right  of  the  President,  in  accordance  with  the 
provisions  of  subsection  (b)  of  Section  10  of  the  National  Industrial 
Recovery  Act,  from  time  to  time  to  cancel  or  modify  any  order,  ap- 
proval, license,  rule,  or  regulation  issued  under  Title  I  of  said  Act, 
and  specifically,  but  without  limitation,  to  the  right  of  the  President 
to  cancel  or  modify  his  approval  of  this  Code  or  any  conditions  im- 
posed by  him  upon  his  approval  thereof. 

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  effec- 
tive on  approval  of  the  President. 

Article  VIII — Monopolies,  Etc. 

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  IX — Price  Increases 

Whereas  the  policy  of  the  Act  to  increase  real  purchasing  power 
will  be  made  more  difficult  of  consummation  if  prices  of  goods  and 
services  increase  as  rapidly  as  wages,  it  is  recognized  that  price  in- 
creases, except  such  as  may  be  required  to  meet  individual  cost, 
should  be  delayed.  But  when  made,  such  increases  should,  so  far 
as  possible,  be  limited  to  actual  additional  increases  in  the  seller's 
costs. 

Article  X — Termination 

All  provisions  of  this  Code  and  an}'^  modifications  thereof  shall 
cease  to  be  in  effect  after  June  16,  1935,  or  sooner  if  the  President 
shall  by  proclamation,  or  the  Congress  shall  by  joint  resolution,  de- 
clare that  the  emergency  recognized  in  Section  1  of  the  Act  has 
ended. 

Article  XI — Effecti\'e  Date 

This  Code  shall  become  effective  at  12 :  01  o'clock  A.M.  on  the  sec- 
ond Monday  after  its  approval  by  the  President. 


Approved  Code  No.  233. 
Registry  No.  1414-03. 


o 


Approved  Code  No.  234 
CODE  OF  FAIR  COMPETITION 

FOR  THE 

MACARONI  INDUSTRY 

As  Approved  on  January  29,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR   THE 

MACARONI  INDUSTRY 

An  application  having  been  dulj^  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  Macaroni  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 

NOW,  THEREFORE,  on  behalf  of  the  President  of  the  United 
States,  I,  Hugh  S.  Jolinson,  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  j)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,  provided,  however, 
that  provisions  thereof  shall  not  become  effective  and  they  are  hereby 
stayed  for  a  period  of  10  days  in  order  to  afford  consideration  of  the 
objections  of  any  interested  parties,  and  at  the  expiration  of  which 
period  the  said  Code  shall  become  effective  unless  I  shall  by  my 
further  Order  otherwise  determine  or  extend  such  stay,  and  provided 


36552° 313-148 34       (521) 


522 

further  that  the  provisions  of  Section  6  of  Articles  VII,  relating  to 
open  price  schedules,  are  stayed  and  shall  not  become  effective  for  60 
days  after  the  date  of  approval  hereof. 

Hugh  S.  Johnson, 
Administrator  for  Industrial  Recovei^. 

Approval  recommended:  • 

Walter  White, 

Deputy  Administrator^ 

Washington,  D.C, 

January  29^  1934. 


The  President, 

The  White  Hou^e. 
Sir:  This  is  a  report  on  the  Code  of  Fair  Competition  for  the 
Macaroni  Industry,  and  on  the  public  hearing  held  in  Washington, 
D.C.,  on  October  5,  1933,  in  accordance  with  the  provisions  of  the 
National  Industrial  Recovery  Act. 

HOURS    AND    WAGES 

All  labor,  clerical  and  otherwise,  is  placed  on  a  basis  of  40  hours 
per  week  and  8  hours  per  day,  with  an  exemption  for  peak  periods 
not  to  exceed  eight  weeks  in  any  one  calendar  year,  during  which  time 
48  hours  may  be  worked  with  a  j)enalty  of  time  and  one  third  for  all 
time  worked  in  excess  of  40  hours. 

Maintenance  men,  engineers,  firemen,  mixers,  kneadermen,  and 
dryers  are  placed  on  a  44-hour  week  since  their  normal  duties  require 
a  somewhat  longer  day  in  order  that  the  production  of  a  plant  run 
on  an  eight-hour  basis. 

Watchmen  are  limited  to  56  hours,  delivery  men  to  48  hours  and 
the  supervisory  force  is  exempted  in  the  cases  of  salaries  above 
$35.00  per  week. 

Office  employees  are  placed  on  a  $16.00  per  week  basis  with  a 
differential  of  $2.00  for  office  boys  and  messengers. 

For  plant  labor  there  are  three  basing  rates  of  pay  which  were 
recognized  in  the  P.R.A.,  Substitution  and  whose  presence  in  the 
code  are  deemed  necesary  for  the  protection  of  employees. 

Female  employees  performing  the  same  functions  as  males  shall 
be  paid  under  the  male  minimum  for  that  classification. 

Piecework  and  maintenance  of  fair  differentials  are  dealt  with  in 
the  usual  manner. 

No  geographic  wage  differential  is  written  into  this  Code,  but 
specific  permission  is  granted  any  regional  group  to  submit  data  to 
the  Code  Authority  showing  competitive  disadvantage.  If  the  Code 
Authority,  upon  investigation,  finds  that  the  data  submitted  justifies 
a  wage  differential,  the  Code  Authority  may  petition  the  Admin- 
istrator for  an  adjustment. 

ECONOMIC   EFFECTS    OF    THE   CODE 

The  Macaroni  Industrj'^  is  distributed  over  the  entire  country, 
centering  largely  in  metropolitan  districts.  Individual  units  vary 
from  small  family  establishments  catering  to  local  trade  only  to 
large  up-to-date  factories  having  a  substantial  output  and  competing 
through  the  channels  of  interstate  commerce. 

The  gross  volume  of  business  was  in  excess  of  $47,000,000.00  in 
1929,  dropped  to  $36,225,000.00  in  1931,  and  probably  will  show  a 
further  decline  when  1933  figures  are  available. 

(523) 


524 

The  principal  ingredient  of  macaroni  is  flour  used  in  three  forms; 
namely,  Semolina,  Farina,  and  ordinary  flour.  All  three  are  whole- 
gome  and  permissible  ingredients,  but  first  quality  macaroni  is  de- 
rived from  Somolina,  which  is  the  purified  midcllings  made  from 
durum  wheat,  and  does  not  command  a,s  wide  a  market  as  the  other 
two  forms  of  flour  from  which  macaroni  may  be  made.  It  is,  there- 
fore, of  interest  to  observe  that  the  standards  of  quality  provided 
for  in  this  Code  will  substantially  increase  the  use  of  Semolina. 
These  standards  are  deemed  to  be  of  value  to  the  consumer  in  guar- 
anteeing him  a  high  quality  product  when  sold  under  the  name  of 
macaroni  and  further  protect  the  consumer  by  stringent  label  re- 
quirements. In  addition,  these  quality  standards  will  tend  to  stabi- 
lize the  Industry,  which  has  suffered  from  destructive  price-cutting 
by  members  of  the  Industry  engaged  in  distributing  an  inferior 
product  under  claims  of  equal  quality  with  better  merchandise. 

The  Code  also  contains  a  provision  on  destructive  price-cutting 
which  will  tend  to  stabilize  the  Industry  and  enable  it  to  support 
the  wage  scales  which  have  been  written  into  the  Code. 

The  Code  Authority  will  be  selected  by  a  method  which  is  deemed 
to  assure  its  representative  nature,  and  its  powers  and  duties  have 
been  limited  to  those  generally  accorded  to  Code  Authorities  under 
the  policy  of  this  Administration, 

This  Code  was  heard  at  a  public  hearing  called  by  the  Secretary 
of  Agriculture.  Under  Executive  Order  of  January  8,  1934,  those 
provisions  of  the  Code  which  were  under  jurisdiction  of  the  Sec- 
retary of  Agriculture  pursuant  to  your  Executive  Order  of  June 
26,  1933,  were  transferred  to  this  Administration,  whose  represent- 
atives have  made  certain  revisions  in  the  Code,  as  is  customary 
after  public  hearing.  These  changes  are  not  in  conflict  with  the  tes- 
timony in  the  record  of  the  public  hearing,  and  have  been  assented 
to  by  the  Industry.  The  representatives  of  the  Agricultural  Ad- 
justment Administration,  under  whose  jurisdiction  all  provisions  of 
this  Code,  with  the  exception  of  labor  provisions,  were  prepared 
and  heard  at  public  hearing,  have  endorsed  these  provisions  in  their 
present  form  with  special  reference  to  the  standards  of  quality 
provided  and  the  Fair  Trade  Practices. 

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  trade  groups,  by 
inducing  and  maintaining  united  action  of  labor  and  management 
under  adequate  governmental  sanctions  and  supervision,  by  elim- 
inating unfair  competitive  practices,  by  promoting  the  fullest  possi- 
ble utilization  of  the  present  productive  capacity  of  industries,  by 
Rvoiding  undue  restriction  of  production  (except  as  may  be  tem- 
porarily required),  by  increasing  the  consumption  of  industrial  and 


525 

agricultural  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 
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  trulj^  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  the  above  reasons  this  Code  has  been  approved. 
Respectfully, 

Hugh  S.  Johnson, 

Administi'ator, 
January  29, 1934. 


CODE  OF  FAIR  COMPETITION 

FOR  THE 

MACARONI  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  Competi- 
tion for  the  Macaroni  Industry,  and  its  provisions  shall  be  the 
etandarcls  of  fair  competition  for  such  industry  and  shall  be  binding 
upon  every  member  thereof. 

Article  II — Definitions 

Section  1.  As  used  in  this  Code : 

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

(b)  The  terms  "Administrator  "  and  "Act  "  as  used  herein  mean 
respectively,  the  Administrator  for  Industrial  Recovery  and  Title  I 
of  the  National  Industrial  Recovery  Act. 

(c)  The  term  ''  Person "  means  individual,  partnership,  corpo- 
ration, association,  and  any  other  business  unit. 

(d)  The  term  "Macaroni  Industry"  includes  the  manufacture 
and  sale  by  manufacturers  of  macaroni  products  for  use  or  con- 
sumption off  the  premises. 

(e)  The  term  "Employee"  means  any  person  engaged  in  the 
macaroni  industry  in  any  capacity  receiving  compensation  for  his 
services,  irrespective  of  the  nature  or  method  of  payment  of  such 
compensation. 

(f)  The  term  "  Employer  "'  means  any  person  b}^  whom  any  such 
employee  is  compensated  or  employed. 

(g)  The  term  "  Member  of  the  Industry  "  or  "  Member  "  means 
any  person  engaged  in  the  industry,  either  as  an  employer  or  on 
his  own  behalf. 

(h)  The  term  "  State  "  includes  Territories  and  the  District  of 
Columbia. 

(i)  The  term  "  IVIacaroni  Products  "  means  and  includes  all  doughs 
which  have  as  their  base  farina,  semolina,  flour,  and/or  other  per- 
mitted ingredients,  and  which  are  pressed,  rolled,  cut,  or  stamped  in 
various  forms.  Macaroni,  spaghetti,  vermicelli,  and  egg  noodles  are 
types  of  macaroni  products. 

(j)  The  term  "Outside  Salesmen"  means  persons  engaged  exclu- 
sively outside  the  shop  and  employed  substantially  all  of  their  time 
in  selling. 

(k)  The  term  "  Distributor  "  means  a  wdiolesale  dealer  in  maca- 
roni products. 

(526) 


527 

(1)  The  term  "  Code  "  means  this  Code  of  Fair  Competition  or 
as  amended. 

(m)  The  term  "  Bulk  Goods  "  means  macaroni  products  which 
are  normally  bought  by  retailers  in  original  packages  and  distributed 
to  consumers  in  smaller  lots  than  the  original  package. 

(n)  The  term  "  Package  Goods  "  means  macaroni  products  which 
are  sold  in  original  packages. 

Article  III — General  Labor  Provtsions 

Section  1.  Employees  shall  have  the  right  to  organize  and  bargain 
collectivel}"  through  representatives  of  their  own  choosing,  and  shall 
be  free  from  interference,  restraint,  or  coercion  of  employers  of 
labor,  or  their  agents,  in  the  designation  of  such  representatives  or 
in  such  self-organization  or  in  other  concerted  activities  for  the  pur- 
pose of  collective  bargaining  or  other  mutual  aid  or  protection. 

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

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

Sec.  4.  On  and  after  the  effective  date  of  this  Code,  no  person 
under  16  years  of  age  shall  work  or  be  permitted  to  work  in  the 
Macaroni  industry. 

Sec.  5.  No  person  under  18  years  of  age  shall  work  or  be  permitted 
to  work  at  operations  and/or  occupations  deemed  to  be  hazardous 
and/or  detrimental  to  health.  The  Code  Authority  shall  submit  to 
the  Administrator  for  approval  before  February  1,  1934,  a  list  of 
such  occupations. 

Sec.  6.  No  provision  in  this  Code  shall  supersede  anj'^  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. 

Article  IV — Hours 

Section  1.  No  employee  shall  work  or  be  permitted  to  work  in 
excess  of  forty  hours  in  any  one  week,  or  more  than  eight  hours  in. 
any  one  day,  with  the  following  exceptions : 

(a)  When  seasonal  demand  places  unforseen  burdens  on  produc- 
tive capacity  of  a  plant,  employees  may  work  up  to  but  not  in  excess 
of  forty-eight  hours  per  week  provided  such  periods  do  not  total 
more  than  eight  weeks  in  any  one  calendar  year  and  providing  fur- 
ther that  at  least  time  and  one  third  is  paid  for  all  time  worked  over 
forty  hours  per  week. 

(b)  Executive,  supervisory,  technical,  and  administrative  em- 
ployees, provided  that  they  receive  over  thirty-five  ($35.00)  dollars 
per  week,  and  outside  salesmen. 

(c)  Chauffeurs  and  delivery  men,  provided  they  are  not  employed 
more  than  forty-eight  hours  in  any  one  week. 

86552 313-148-^—34-^—2 


528 

(d)  "Watchmen  not  performing  any  operating  functions  provided 
they  are  not  employed  more  than  fifty-six  hours  in  any  one  week. 

(e)  Maintenance  men.  engineers,  firemen,  mixers,  kneadermen,  and 
drj^ers,  provided  they  are  not  employed  more  than  forty-four  hours 
in  any  one  week. 

Sec.  2.  The  maximum  hours  fixed  in  Section  1  shall  not  apply  to 
employees  on  emergency,  maintenance,  and  repair  work,  but  in  any 
such  special  case  at  lea.st  time  and  one  third  shall  be  paid  for  hours 
worked  in  excess  of  the  maximum  hours,  and  reports  shall  be  made 
monthlv  to  the  Code  Authoritv  stating  number  of  hours  so  worked  in 
excess  of  the  maximum. 

Sec.  3.  Xo  employer  shall  engage  any  employee  for  any  time  which 
when  totalled  with  that  performed  with  another  employer  or  em- 
ployers exceeds  the  maximum  permitted  herein  for  one  day  or  one 
week. 

Article  T — Wages 

Sectiox  1.  Xo  clerical,  accounting,  or  other  office  employee  shall 
be  paid  at  a  rate  of  less  than  sixteen  ($16.00)  dollars  per  week,  ex- 
cept that  office  boys  and  messengers  may  be  employed  at  a  rate  of 
not  less  than  fourteen  ($14.00)  dollars  per  week,  provided  that  such 
office  boys  and/or  messengers  shall  not  constitute  more  than  ten 
(10%)  percent  of  all  clerical  and  office  employees,  but  each  employer 
shall  be  entitled  to  one. 

Sec.  2.  Other  employees  .'jhall  be  paid  at  not  less  than  the  follow- 
ing minima  respectively: 

(a)  Mixers,  kneadermen.  press  and  dough-break  operators  shall 
receive  not  less  than  fifty-five  (55^)  cents  per  hour. 

(b)  Other  male  employees  shall  receive  not  less  than  forty -five 
(45(i)  cents  per  hour,  except  that — 

1,  Unskilled  men,  not  to  exceed  ten  (10%)  percent  of  the  total 
factory  employees,  emploj^ed  in  light  occupations  shall  receive  not 
less  than  thirty-five  (35(i)  cents  per  hour.  It  is  provided,  however, 
that  any  factory  with  ten  or  less  employees  may  employ  one  un- 
skilled man  at  the  foregoing  rate. 

2.  Watchmen  not  performing  any  operating  function  shall  receive 
not  less  than  thirty -five  (350)  cents  per  hour. 

(c)  Female  employees  shall  receive  not  less  than  thirty-five  (350) 
cents  per  hour,  except  that  where  female  workers  do  substantially 
the  same  work  or  perform  substantially  the  same  duties  as  male 
employees,  they  shall  be  paid  the  same  rate  of  pay  as  male  employees 
are  paid  for  doing  such  work  or  performing  such  duties. 

Sec.  3.  It  is  agreed  that  this  Code  establishes  a  minimum  rate  of 
pay  regardless  of  whether  the  employee  is  compensated  on  the  basis 
of  time  rate  or  piecework  performance. 

Sec.  4.  It  is  agreed  that  equitable  adjustments  will  be  made  in 
the  cases  of  those  employees  now  receiving  more  than  the  minimum, 
to  maintain  fair  differentials  now  existing  between  employees.  In 
no  case  shall  hourly  wages  be  reduced.  It  shall  be  the  function  of 
the  Code  Authority  to  supervise  the  observance  of  these  provisions 
and  to  make  recommendations  to  the  Administrator  for  further 
provisions  appropriate  to  carry  out  the  purposes  of  this  Section. 


529 

Sec.  5.  Each  employer  shall  post  in  a  conspicuous  place  of  e^sy 
and  continuous  access  to  eniplojees,  the  labor  provisions  of  this 
Code.  The  notice  shall  be  printed  in  English  and  at  least  three 
notices  shall  be  posted  in  any  shop  employing  more  than  ten  em- 
ployees, and  one  in  any  smaller  shop.  Notices  shall  be  posted  in 
such  other  language  as  maj'  be  necessary  to  the  understanding  of  all 
employees.  All  changes  in  the  labor  provisions  of  this  Code  shall 
be  posted  within  one  week  after  such  changes  have  been  incorporated. 

Sec.  6.  Xiiy  Regional  Group  (as  provided  in  Article  VIII)  may 
submit  data  tending  to  prove  that  such  Regional  Group  is  placed 
at  a  competitive  disadvantage  with,  or  is  subject  to  different  economic 
conditions  from  those  of  other  Regional  Groups:  and  if  the  Code 
Authority  decides,  after  investigation,  that  the  facts  submitted 
justify  special  labor  prov^isions  for  that  Group,  the  Code  Authority 
shall  petition  and  recommend  to  the  Administrator  that  changes 
be  made  in  the  provisions  for  Labor  in  this  Code,  and  upon  his 
approval  after  such  notice  and  hearing  as  he  may  specify,  such  new 
provisions  shall  become  effective  for  that  Regional  Group. 

Sec.  7.  The  provisions  of  this  Code  governing  hours  of  labor, 
rates  of  pay,  and  other  conditions  of  employment  shall  apply  to 
employers  and  others,  while  performing  the  duties  of  employees. 

Sec.  8.  No  employer  shall  change  the  method  of  payment  of  com- 
pensation of  employees  for  the  purpose  of  evading  the  provisions 
of  this  Code  or  by  other  subterfuge  evade  the  provisions  of  this 
Code  or  of  the  Act. 

Article  VI — Oeganizatiox  axd  Coxstitutiox 

Section  1.  For  the  purposes  of  administering  this  Code  and 
effectuating  the  pohcies  and  purposes  of  the  Act,  there  shall  be 
forthwith  established  a  Code  Authority  to  be  composed  of  nine 
persons  who  shall  be  elected  by  members  of  the  industry.  The 
number  elected  from  the  membership  of  the  National  Macaroni 
Manufacturers'  Association  shall  bear  the  same  relation  to  the 
members  of  the  Code  Authority  that  the  production  represented 
by  the  membership  of  the  National  Macaroni  Manufacturers"  Asso- 
ciation bears  to  the  total  production  of  the  members  of  the  industry. 
At  least  one  member  of  the  Code  Authority  shall  be  a  member  of 
the  industry  whose  annual  production  is  less  than  the  total  annual 
production  of  the  industry  divided  by  the  total  number  of  members 
of  the  industry. 

(a)  The  terms  of  office  of  the  Code  Authority  shall  be  for  one 
year  beginning  on  July  1  of  each  year,  except  that  the  term  of  the 
first  Code  Authority  shall  begin  on  the  effective  date  of  this  Code 
and  expire  on  June  30,  193-1. 

(b)  Vacancies  caused  by  death,  resignation,  or  otherwise  shall 
be  filled  bv  the  remaining  members  of  the  Code  Authoritv  with  the 
approval  of  the  Administrator. 

Sec.  2.  In  addition  to  members  as  above  provided,  there  may  be 
two  members,  without  vote,  appointed  by  the  Administrator  to 
serve  for  a  term  of  from  six  months  to  one  year. 

Sec.  3.  Each  trade  or  industrial  association  directly  or  indirectly 
participating  in  the  selection  or  activities  of  the  Code  Authorit 
shall  (1)  impose  no  inequitable  restrictions  on  membership,  and  (" 


^ 


530 

submit  to  the  Administrator  true  copies  of  its  articles  of  association, 
bjdaws,  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 
truly  representative  of  the  macaroni  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. 

Seo.  5.  Members  of  the  macaroni  industry  shall  be  entitled  to 
participate  in  and  share  the  benefits  of  the  activities  of  the  Code 
Authority  and  to  participate  in  the  selection  of  the  members  thereof 
by  assenting  to  and  complying  with  the  requirements  of  this  Code 
and  sustaining  their  reasonable  share  of  the  expenses  of  its  admin- 
istration. 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. 

Seo.  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  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.  Power's  and  Duties. — The  Code  Authority  shall  have  the 
following  further  powers  and  duties,  the  exercise  of  which  shall 
be  reported  to  the  Administrator  and  shall  be  subject  to  his  right, 
on  review,  to  disapprove  any  action  taken  by  the  Code  Authority. 

(a^  To  insure  the  execution  of  the  provisions  of  this  Code  and 
provide  for  the  compliance  of  the  macaroni  industry  with  the  pro- 
visions 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  macaroni  industry  ,such  in- 
formation and  reports  as  are  required  for  the  administration  of 
the  Code  and  to  provide  for  submission  by  members  of  such  infor- 
mation 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  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  obligation  to  furnish  reports  to  any  Government 
agent.  All  such  reports  shall  be  considered  confidential  and  not 
to  be  disclosed  to  any  other  member  of  the  macaroni  industry  or 
any  other  party  except  to  such  governmental  agencies  as  may  be 
directed  by  the  Administrator. 


531 

(d)  To  iis€  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- 
it}'  of  its  duties  or  responsibilities  under  this  Code  and  that  such 
trade  associations  and  agencies  shall  at  all  times  be  subject  to  and 
comply  Avith  the  provisions  hereof. 

(e)  To  elect  a  repi'esentative  to  serve  on  any  coordinating  or 
advisor}'  committee  which  maj-  subsequently  be  established  for  the 
entire  grocery  manufacturing  industry,  and  to  cooperate  with  any 
such  committee  with  respect  to  any  functions  that  may  be  delegated 
to  it  by  the  Administrator. 

(f )  To  secure  from  members  of  the  macaroni  industry  an  equi- 
table and  proportionate  payment  of  the  reasonable  expenses  of  main- 
taining the  Code  Authority  and  its  activities,  and  to  incur  expenses 
and  to  make  disbursements  of  such  moneys  as  may  be  necessary  for 
the  administration  of  this  Code. 

(g)  To  cooperate  Avith  the  Administrator  in  regulating  the  use 
of  any  N.R.A.  insignia  solely  by  those  members  of  the  macaroni 
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  macaroni  industry  in  their 
relations  to  each  other  or  with  other  industries  and  to  recommend 
to  the  Administrator  measures  for  industrial  planning,  including 
stabilization  of  employment. 

(i)  T\nienever  the  Code  Authority  has  reason  to  believe  that 
any  person  is  violating  any  of  the  provisions  of  this  Code,  it  may 
investigate  whether  such  violation  is  occurring  and  may  call  upon 
members  of  the  industry  whose  transactions  are  under  investigation, 
to  furnish  sworn  statements  of  the  facts  concerning  any  specific 
alleged  violation.  If  necessary,  after  due  investigation,  and  upon 
authority  granted  by  the  Administrator,  the  Code  Authority  may 
employ  a  Certified  Public  Accountant  or  an  accountant  having  the 
equivalent  in  Cjualifications  and  ability  of  a  Certified  Public  Ac- 
countant to  examine,  during  usual  business  hours,  the  books  and 
records  of  any  members  of  the  industry  whose  practices  are  under 
investigation.  Instructions  to  the  accountant,  pursuant  to  authority 
granted  by  the  Administrator,  must  specifically  set  forth  the  mat- 
ter upon  which  report  to  the  Code  Authorit}'  is  required,  and  sj^ecify 
that  said  accountant  shall  not  reveal  to  the  Code  Authority  or  any 
person,  any  other  matter  disclosed  by  said  examination.  If,  in 
the  opinion  of  the  Code  Authority,  the  alleged  violation  exists  and 
is  not  immediately  corrected,  the  record  of  the  case  and  all  the 
accumvdated  evidence  shall  be  sent  to  the  Administrator  with  recom- 
mendations for  prosecution  under  the  Act. 

(j)  To  require  members  of  the  industry  to  use  accounting  systems 
which  shall  conform  to  the  principles  of  and  are  at  least  as  detailed 
and  complete  as  the  standard  and  uniform  method  of  accounting  to 
be  formulated  by  the  Code  Authority  subject  to  the  approval  of  the 
Administrator,  with  such  variations  therefrom  as  may  be  required 
by  the  individual  conditions  affecting  anj-  member  of  the  industry 
as  may  be  approved  by  the  Code  Authority. 


532 

(k)  To  establish  proper  facilities  including  laboratory  facilities 
for  the  enforcement  of  this  Code,  which  shall  be  placed  at  the 
disposal  of  the  Administrator  at  all  times. 

Article  VII — Unfair  Methods  of  Competition 

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

Section  1.  False  Adverflshif/. — To  publish  or  disseminate  in  any 
manner  any  false  advertisement  of  any  macaroni  product.  An  ad- 
vertisement shall  be  deemed  to  be  false  if  it  is  untrue  in  any  par- 
ticular. 

Sec.  2.  Mishranding. — To  sell  or  otherwise  introduce  into  com- 
merce any  macaroni  product  that  is  misbranded.  A  macaroni 
product  shall  be  deemed  to  be  misbranded  if  it  fails  to  conform  to 
the  following  standards  and  requirements : 

(a)  Standards  of  Identify. — If  it  purports  to  be  or  is  represented 
as  a  macaroni  product  for  which  a  definition  of  identity  has  been 
prescribed  by  this  Code  and  fails  to  comply  therewith. 

(b)  Standards  of  Quality. — If  it  purports  to  be  or  is  represented 
as  a  macaroni  product  for  which  standards  of  quality  have  been 
prescribed  by  this  Code,  and  (1)  fails  to  state  on  the  label,  if  so 
required  by  the  regulations  prescribed  by  this  Code,  its  standard  of 
quality  in  terms  as  such  regulations  specify,  or  (2)  falls  below  the 
standard  stated  on  the  label. 

(c)  Lahel  Requirements. — 1.  If  in  package  form  including  the 
original  bulk  goods  package,  and  it  fails  to  bear  a  label  containing 
(la)  the  net  weight  of  the  contents  of  the  package,  (lb)  the  name  of 
the  product  (macaroni,  spaghetti,  etc.),  (Ic)  the  name  and  address 
of  the  manufacturer  or  distributor,  and  in  the  event  the  manufac- 
turer is  not  the  distributor,  an  appropriate  identifying  mark  of  the 
manufacturer  shall  appear  on  the  shipping  container. 

2.  Commencing  on  the  effective  date  of  this  Code,  except  as 
provided  in  Article  VII,  Section  3  (c),  if  its  label  fails  to  bear  a 
true  statement  of  the  names  of  the  farinaceous  ingredients  used  in 
order  of  predominance  by  weight. 

3.  If  any  Avord,  statement,  or  other  information  required  on  the 
label  to  avoid  misbranding  under  any  provision  of  this  section,  is 
not  prominently  placed  thereon  in  such  a  manner  as  to  be  easily 
seen  and  in  such  terms  as  to  be  readily  intelligible  to  the  purchasers 
and  users  of  such  articles  under  customary  conditions  of  purchase 
and  use. 

Sec.  3.  Standards. — To  manufacture  or  sell,  or  otherwise  introduce 
into  commerce  any  macaroni  product  in  violation  of  the  provisions 
that : 

(a)  Macaroni  products  made  from  semolina,  or  durum  wheat  flour 
containing  more  than  0.75%  ash,  exclusive  of  salt,  shall  bear  a 
statement  on  the  principal  label  as  follows:  "  This  product  is  below 
standard  but  not  illegal." 

(b)  Macaroni  products  made  from  farina  or  hard  wheat  flour 
other  than  durum  containing  more  than  0.48%  ash,  exclusive  of 
salt,  shall  bear  a  statement  on  the  principal  label  as  follows :  "  This 
product  is  below  standard  but  not  illegal." 


533 

(c)  Macaroni  products  except  water  noodles  or  noodles  (egg, 
noodles)  made  from  semolina,  farina,  flour,  or  mixtures  thereof, 
shall  bear  a  true  statement  of  the  names  of  the  farinaceous  ingre- 
dients used,  except  that  all  labels,  wrappers,  cartons,  or  other  printed 
packaging  materials  on  hand  or  in  stock  on  the  effective  date  of  this 
Code  will  be  exempt  from  this  provision,  provided  that  the  manu- 
facturer files  with  the  Code  Authority  within  ten  (10)  days  from 
the  effective  date  a  complete  certified  inventory  of  such  supplies, 
with  subsequent  inventories  every  sixty  (60)  days;  and  further  pro- 
vided that  such  labels,  wrappers,  cartons,  or  other  printed  packaging 
materials  do  not  bear  statements  which  are  false  or  misleading;  and 
further  provided  that  the  names  of  the  farinaceous  ingredients 
appear  on  the  shipping  containers. 

(d)  Macaroni  products  in  the  form  of  noodles  shall  contain  not 
less  than  5,5  percent  of  egg  or  egg  yolk  solids  by  weight  on  a  dry 
basis. 

(e)  No  macaroni  product  shall  contain  any  added  ingredients  ex- 
cept as  specified  under  the  standards,  provided,  however,  that  no 
wholesome  food  ingredient  is  excluded,  if  its  presence  is  declared  on 
the  label  in  such  manner  as  may  be  prescribed  by  the  Code  Authority. 

(f)  Macaroni  products  shall  not  be  packed  for  sale  in  colored 
wrappers  or  containers  which  give  the  product  the  appearance  of 
containing  more  egg  yolk  solids  than  are  present  in  the  product. 

(g)  No  artificial  color  or  any  other  substance  shall  be  used  which 
imparts  to  a  macaroni  product  a  shade  of  yellow  color  which  makes 
the  product  appear  to  contain  more  egg  yolk  solids  than  are  present 
in  such  product. 

Sec.  4.  The  submission  to  the  Code  Authority  of  false  or  mis- 
leading reports  or  representations  by  a  member  of  the  industry  or 
his  representatives,  with  knowledge  that  such  reports  are  false,  mis- 
leading, or  a  misrepresentation,  with  respect  to  hours  of  labor,  em- 
ployment conditions,  wages  paid,  raw  materials  used,  capacity,  pro- 
duction, sales,  orders,  or  shipments,  or  an}'^  other  information  needed 
to  accomplish  the  objectives  of  the  Code,  except  that  nothing  in  this 
paragraph  shall  require  any  member  of  the  industry  to  disclose  any 
trade  secret  or  formulae  or  process  except  as  required  by  the  Pure 
Food  Laws.  Nothing  herein  shall  be  construed  to  prevent  the 
Administrator,  or  his  official  representatives  from  securing  any  in- 
formation which  may  be  necessary  to  the  investigation  of  a  specified 
alleged  violation  of  this  Code.  Such  information  to  be  kept  con- 
fidential bj'  the  Administrator  or  his  representatives,  except  where 
it  may  be  necessary  to  disclose  such  information  in  the  prosecution 
of  an  alleged  offender. 

Sec.  5.  /Sales  Below  Cost. — No  member  of  the  industry  shall  sell 
below  a  fair  and  reasonable  cost,  except  that  any  member  may  sell 
below  his  individual  cost  to  meet  the  price  of  a  competitor  which  is 
not  in  violation  of  this  Code.  If,  in  the  opinion  of  the  Code  Author- 
ity, any  price  list  indicates  sales  below  such  cost  which  would  prevent 
in  this  industry  the  effectuation  of  the  declared  policy  of  the  Act, 
the  Code  Authority  shall  so  notify  the  member  whose  price  list  is 
under  investigation.  If,  after  due  notice  and  hearing  in  such  manner 
as  the  Code  Authority  ma}'  prescribe,  the  Code  Authority  shall  find 
that  any  such  member  has  engaged  in  selling  below  a  fair  and 


534 

reasonable  cost,  it  shall  notify  the  Administrator,  who  shall  approve 
or  disapprove  such  finding. 

(a)  For  the  determination  of  the  above  clause,  the  elements  of 
cost  which  enter  into  the  determination  of  a  fair  and  reasonable 
cost  shall  forthwith  be  developed  by  the  Code  Authority  for  the 
approval  of  the  Administrator,  and  when  approved  by  the  Adminis- 
trator, shall  be  made  known  to  all  members  of  the  Industry.  Pro- 
vided, however,  that  until  such  time  as  the  fair  and  reasonable  cost 
basis  is  approved  and  made  known  to  the  members,  any  sales  made 
at  prices  filed  to  conform  with  the  open  price  provisions  of  this 
Code  shall  not  be  declared  in  violation  of  this  Code  except  that 
nothing  herein  shall  deprive  the  Administrator  of  the  right  at  any 
time  to  order  withdrawal  of  any  price  which  he  shall  decide  is  below 
a  fair  and  reasonable  cost. 

Sec.  6.  Open  Prices. — No  member  of  the  industry  shall  sell  any 
macaroni  product  to  a  trade  buyer  except  on  the  basis  of  an  open 
price  which  is  strictly  adhered  to,  while  effective.  The  term  "  open 
price  "  as  used  in  this  section  means  a  price  list  which  declares  all 
of  the  member's  prevailing  prices,  allowances,  and  terms  of  sale  for 
his  macaroni  products. 

(a)  Each  member  of  the  industry  shall  file  his  price  list  with  the 
Code  Authority  within  ten  (10)  days  after  the  effective  date  of  this 
Code,  and  any  member  desiring  to  change  his  price  list  shall  file  a 
revised  price  list  with  the  Code  Authority  which  shall  become  ef- 
fective not  less  than  five  (5)  days  after  and  exclusive  of  the  date  of 
filing  thereof,  Sundays  and  holidays  excluded. 

(b)  Price  lists  shall  be  available  to  all  members  of  the  industry, 
to  the  Administrator,  and  to  all  trade  buyers  in  the  same  competitive 
market.  The  term  "  trade  buyer  "  as  used  herein  means  any  com- 
mercial buyer  as  distinguished  from  an  ultimate  consumer  buyer. 

(c)  The  Code  Authority  shall  not  veto  nor  modify  any  price  list. 

(d)  No  member  of  the  industry  shall  make  any  direct  or  indirect 
price  concession  to  a  trade  buyer.  The  term  "  direct  or  indirect 
price  concession  "  means  any  variation  from  the  member's  open  price, 
whether  by  means  of  rebate,  allowance,  payment,  free  deal,  gift,  or 
by  any  other  means  whatsoever. 

(e)  No  member  of  the  industry  shall  knowingly  permit  his  agent 
or  sales  representative  to  make  a  price  concession  prohibited  by  this 
section,  whether  by  gift  or  allowance  of  any  part  of  his  compensa- 
tion, or  by  any  other  means  whatsoever. 

_(f)  No  member  of  the  industry  shall  offer  or  make  a  quantity 
price  unless  it  is  based  upon  and  reasonably  measured  by  a  substantial 
difference  in  the  quantity  sold  and  delivered. 

(g)  No  member  of  the  industry  shall  allow  a  discount  for  cash 
which  is  not  earned  by  payment  in  accordance  with  the  cash  discount 
terms  specified  in  his  open  price  list.  "^ 

Sec.  7.  Unearned  Service  Payment. — No  member  of  the  industry 
Bhall  pay  a  trade  buyer  for  a  special  advertising  or  other  distribution 
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 

*  See  paragraph  2  of  order  approving  this  Code. 


535 

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  from  any  sales  price  and  is 
not  designed  or  used  to  reduce  a  sales  price;  and  (d)  unless  such 
payment  is  equally  available  to  all  competitive  trade  buyers  who  are 
members  of  the  same  distribution  class  as  to  service  required  from 
the  seller  and/or  rendered  by  the  trade  buyer;  and  (e)  unless  a  copy 
of  each  such  contract  is  retained  on  file  for  a  period  of  one  year.  In 
order  to  investigate  an  alleged  violation  of  this  Code,  the  Adminis- 
trator may  require  a  member  of  the  industry  to  report  any  such 
contract  made  by  him  and/or  to  produce  a  copy  thereof  for 
inspection. 

Sec.  8.  Prizes  and  Premiums. — No  member  of  the  industry  shall 
offer  any  prize  or  premiums  or  gift  in  pursuance  of  a  plan  which 
involves  fraud  or  deception  or  lottery,  or  which  is  an  indirect  price 
concession. 

Sec.  9.  Credit  for  Spoils. — Giving  credit  for  spoiled  bulk  mac- 
aroni products  after  thirty  (30)  days  from  date  of  shipment. 

Sec.  10.  Shifting  on  Consignment. — No  member  shall  ship  mac- 
aroni products  to  any  customer,  dealer,  or  agent  of  a  customer,  upon 
consignment. 

Sec.  11.  Unfair  Suhstitution. — No  member  of  the  industry  shall 
substitute  without  due  notice  and  consent  of  a  trade  buyer  another 
product  for  that  ordered  from  him. 

Sec.  12.  Commercial  Bribery.— ^o  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,  prin- 
cipal or  party.  This  provision  shall  not  be  construed  to  prohibit 
free  and  general  distribution  of  articles  commonly  used  for  adver- 
tising except  so  far  as  such  articles  are  actually  used  for  commercial 
briber^'  as  hereinabove  defined. 

Sec.  13.  Interference  with  Comiyetitor^  Business. — No  member  of 
the  industry  shall  interfere  with  a  competitor's  business,  by  uttering 
false  statements  about  his  business  or  by  disparaging  his  business  or 
products  or  by  inducing  a  breach  of  his  contracts. 

Sec.  14  Imitation. — No  member  of  the  industry  shall  imitate  the 
trade  marks,  trade  names,  slogans,  or  other  marks  of  identification 
of  competitors,  having  the  tendency  and  capacity  to  mislead  or  de- 
ceive purchasers  or  prospective  purchasers,  and  the  tendency  to  in- 
juriously affect  the  business  of  such  competitors. 

Sec.  15.  Unsanitary  Conditions. — No  member  of  the  industry 
shall  keep  his  plant  or  premises  in  an  unsanitary  condition  in  viola- 
tion of  local  ordinances.  State  laws,  or  Federal  regulations. 

Sec.  16.  Violence,  Intimidation  or  Utd awful  Coercion. —  (a)  Any 
use  of  violence  to  persons  or  property,  intimidation,  or  unlawful 
coercion,  by  a  member  of  the  industry  against  a  member  of  the 
industry. 


536 

(b)  Any  threat  by  a  member  of  the  industry  to  use  such  violence, 
intimidation,  or  unlawful  coercion. 

(c)  Any  conspiracy  among  members  of  the  industry,  or  among 
members  of  the  industry  and  others,  to  use  or  to  threaten  to  use  such 
violence,  intimidation,  or  unlawful  coercion. 

(d)  Any  combining  or  cooperating  by  a  member  of  the  industry 
with  any  one  who  is  using  or  threatening  to  use  such  violence, 
intimidation,  or  coercion, 

Seo.  17.  G oordination  with  Other  Codes. — The  Macaroni  Indus- 
try, recognizing  the  value  of  uniform  basic  trade  practice  provisions 
for  all  food  and  grocery  manufacturing  codes,  pledges  cooperation 
in  securing  the  amendment  of  any  trade  practice  provisions  in  this 
Code  which  may  be  in  conflict  with  trade  practice  provisions  ap- 
proved by  the  President  or  suggested  by  the  Administrator  for  the 
entire  food  and  grocery  manufacturing  industry. 

Article  VIII — Regional  Groups 

Section  1.  As  soon  as  is  practicable  after  this  Code  becomes  effec- 
tive, the  Code  Authority  may  divide  the  United  States  into  geo- 
graphical subdivisions  for  administrative  purposes,  to  be  known  as 
"  Regional  Groups  ",  such  regional  groups  to  be  defined  and  organ- 
ized according  to  a  plan  to  be  submitted  to  the  Administrator  and 
subject  to  the  approval  of  the  Administrator. 

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  on  the  basis  of  experience  or  changes  in  circum- 
stances, such  modifications  to  be  based  upon  application  to  the  Ad- 
ministrator and  such  notice  and  hearing  as  he  shall  specify,  and  to 
become  effective  on  approval  of  the  President. 

(a)  Notliing  in  this  section  shall  be  construed  to  deprive  any 
member  of  the  industry  of  his  rights  to  petition  the  Administrator 
with  regard  to  amendments  or  any  other  matter,  provided  such 
petition  is  first  submitted  to  the  Code  Authority  and  is  not  for- 
warded to  the  Administrator  by  it. 

(b)  Whenever  any  dispute  may  arise  under  this  Code  as  to  the 
construction  and  meaning  of  any  portion  thereof,  the  Code  Author- 
ity may  issue  such  interpretations  as  may  be  necessary  to  effectuate 
the  operation  of  and  compliance  with  the  policy  of  the  Act,  subject 
at  all  times  to  the  approval  of  the  Administrator  and  after  approval 
by  Administrator  such  interpretation  shall  have  the  same  force  and 
effect  as  if  it  were  a  provision  of  the  Code. 


537 

Article  X — Monopolies 

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

Article  XI — ErFECTi\TE  Date 

Section  1.  This  Code  shall  become  effective  on  the  date  specified 
in  Order  of  Approval. 


Approved  Code  No.  234. 
Registry  No.   12^-01. 


o 


Approved  Code  No.  235 
CODE  OF  FAIR  COMPETITION 

FOR  THE 

TEXTILE  PROCESSING  INDUSTRY 

As  Approved  on  January  30,  1934 


ORDER 
Approving  Code  of  Fair  Competition 

FOR  THE 

TEXTILE  PROCESSING  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  Textile  Processing  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 : 

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.  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  proA-isions  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  hereb}?^  approved. 

Hugh  S.  Johnson, 
Administrator  for  Industrial  Recovery. 
Approval  Recommended : 
A.  D.  Whiteside, 

Di  v  is  ion  A  dvvin  is  trat  or. 
Washington,  D.C, 

January  30,  193 Jf. 

32792° 313-72 34  (539) 


The  President, 

The  White  House. 
Sir: 

introduction 

This  is  a  report  on  the  hearing  of  the  Code  of  Fair  Competition 
for  the  Textile  Processing  Industry. 

The  hearing  was  conducted  in  accordance  with  the  provisions  of 
the  National  Industrial  Recovery  Act,  in  the  Rose  Room  of  the 
Washington  Hotel  in  Washington,  D.C.,  on  November  15,  1933. 
Every  person  who  filed  a  request  for  an  appearance  was  freely  heard 
in  public  and  all  statutory  and  regulatory  requirements  were  com- 
plied with. 

The  Code  which  is  attached  Avas  presented  by  duly  qualified  and 
authorized  re^Dresentatives  of  the  above  industry,  complying  with  the 
statutory  requirements,  as  representing  83.G  percent  of  the  industry. 

EVIDENCE  SUBMITTED 

The  industry  consists  of  208  firms  with  an  invested  capital  of  ap- 
proximately $31,750,000.  The  volume  of  business  for  1932  was  $25,- 
000,000  as  compared  with  an  average  for  the  past  five  years  of  ap- 
proximately $39,000,000.  It  is  estimated  that  the  pay  roll  for  1932 
was  $8,800,000  compared  with  an  average  pay  roll  of  '$13,000,000  for 
the  past  five. years.  There  were  7,758  employees  on  the  pay  roll  on 
May  1,  1933.  The  estimated  average  number  of  employees  during 
1929  was  10,458.  The  industiy  is  made  up  of  a  large  number  of 
small  concerns  and  not  dominated  b}'  a  few  outstanding  establish- 
ments. 

RESUME  OF  PROVISIONS  OF  THE  CODE 

The  Code  provides  for  a  minimum  wage  of  $13.00  per  week  for 
forty  hours  of  labor  for  employees  for  cotton  and  rayon  yarn  pro- 
cessing and  $14.00  for  40  hours  of  labor  for  all  other  processing.  For 
employees  in  the  South  the  mininuun  rate  of  pay  may  be  lovrer  than 
the  above  by  not  to  exceed  two  and  one  half  cents  per  hour.  "With 
respect  to  commission  dyeing  and/or  finishing  of  hosiery  provision 
is  made  that  the  minimum  wage  for  40  hours  of  labor  for  each  class 
of  worker  shall  be  that  provided  in  this  Code,  or  that  provided  in 
Sections  1  and  2  of  Article  V  of  the  Code  of  Fair  Competition  for 
the  Hosiery  Industry,  whichever,  in  any  case,  may  be  higher.  •  Cer- 
tain emplo3^ees  receiving  $35.00  or  more  per  week  are  excepted  from 
the  maximum  of  forty  hours  i)er  Aveek.  Watchmen  are  limited  to 
5G  hours  per  week.  Provisions  liave  been  nuide  to  prevent  the 
reduction  of  wages  for  the  shorter  weeks. 

(540) 


541 

FIXniNGS 

Tho  Deputy  Administrator  in  his  final  report  to  me  on  said  Code 
havini^  found  as  herein  set  forth  and  on  the  basis  of  all  the  proceed- 
in<2:s  in  this  matter; 

I  find  that: 

(a)  Said  Code  is  well  designed  to  promote  the  policies  and  pur- 
]joses  of  Title  I  of  the  National  Industrial  Recovery  Act,  includ- 
ing removal  of  obstructions  to  the  free  fiow  of  inter-state  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  utihzation  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  by  me  as  a  major  industry. 

(c)  The  Code  as  approved  complies  in  all  respects  Avith  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, 

Administrator. 
January  30,  1934. 


CODE  OF  FAIR  COMPETITION 

FOR  THE 

TEXTILE  PROCESSING  INDUSTRY 

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  Textile  Processing  Industry  and  shall  be  bind- 
ing upon  every  member  thereof. 

Article  I — Definitions 

1.  The  term  "  Textile  Processing  Industry  "  or  "  Industry  "  as  used 
lierein  means  and  includes  the  folloAving: 

(a)  The  commission  bleaching  and/or  dyeing  of  cotton  and  wool 
raAv  stock  and  worsted  tops; 

(b)  The  commission  scouring,  dyeing,  bleaching,  and/or  other 
processing  of  yarns  made  of  wool  and/or  other  animal  fibres  (not 
including  silk),  wool,  and/or  other  animal  fibres  (not  including  silk) 
in  combination  with  other  fibres,  cotton,  rayon,  and/or  other  syn- 
thetic fibres  or  combinations  thereof ;  but  shall  not  include  the  com- 
mission scouring,  d3'eing,  bleaching,  and/or  other  processing  of 
yarns  made  of  rayon  and/or  other  synthetic  fibres  or  combinations 
thereof  by  persons  who  are  members  of  the  Institute  of  Dyers  and 
Printers,  but  such  persons,  as  to  such  rayon  yarn  processing,  shall  be 
governed  as  to  com])etitive  practices  by  any  code  of  fair  practice 
to  be  approved  for  this  industry; 

(c)  The  commission  dyeing  andy'or  finishing  of  knitted  textile 
fabrics ; 

(d)  The  commission  dyeing  and/or  finishing  of  hosiery;  provided, 
however,  that  any  member  of  the  Industry  engaged  in  such  dyeing 
and/or  finishing  of  hosiery,  whether  for  his  own  account  or  for  the 
account  of  another,  shall  also  be  governed  by  Article  VIII  of  the 
Code  of  Fair  Competition  for  the  Hosiery  Industry  as  to  the 
merchandising  and/or  marking  of  hosiery; 

(e)  The  commission  mercerizing  of  cotton  yarns; 

(f)  The  commission  winding,  warping,  slashing,  and/or  beaming 
of  yarns  made  of  cotton,  wool,  rayon,  and/or  other  synthetic  fibres 
or  combinations  thereof; 

(g)  The  commission  dyeing  and/or  finishing  of  woolen  and/or 
Avorsted  woven  fabrics; 

(h)  The  commission  glazing  of  cotton  yarns  and/or  sewing  thread 
and/or  twine; 

(i)  The  novelty  or  fancy  twisting  of  yarns  of  two  or  more  ends 
made  of  wool  and/or  other  animal  fibres,  rayon,  and/or  other  syn- 
thetic fibres,  and/or  combinations  thereof  with  other  yarns,  pro- 

(542) 


543 

duced  on  twisting  frames  having  two  or  more  lines  of  controlled 
rollers,  including  the  primary  distribution  thereof;  but  shall  not 
include  such  novelty  or  fancy  twisting  of  yarns  as  described  herein 
made  by  persons  who  are  niembers  of  the  National  Association  of 
Wool  Manufacturers,  but  such  persons  as  to  such  novelty  or  fancy 
twisting  of  3'arns  as  described  herein  shall  be  governed  as  to  com- 
petitive practices  by  the  supplementary  codes  of  fair  practice  to  be 
apjjroved  for  this  Industry ; 

(j)  The  dyeing,  glazing,  converting,  and  primary  distribution  of 
glazed  cotton  j^arns,  not  including  sewing  thread  and/or  twine ; 

(k)  The  processing  and  primary  distribution  of  dyed  and/or  con- 
verted sales  yarns  made  of  rayon  and /or  other  synthetic  fibres,  not 
including  such  yarns,  natural  or  bleached,  singles,  with  seven  turns 
twist  to  the  inch  or  less  put  up  in  skeins,  spools,  tubes,  and/or  cones ; 

(1)  The  scouring,  dyeing  ancl/or  bleaching  of  sales  yarns  made 
of  cotton,  wool  and/or  other  animal  fibres  (not  including  silk)  when 
so  processed  as  yarns;  provided,  however,  that  provisions  in  this 
code  governing  labor  and  plant  operations  shall  not  appl}^  to  the 
processing  of  such  sales  yarns  by  spinners  thereof.  The  term  "  sales 
yarns  "  as  used  herein  shall  mean  yarns  produced  for  sale  to  others 
as  distinguished  from  yarns  produced  for  conversion,  by  the  pro- 
ducers thereof,  into  fabrics  and/or  garments. 

2.  The  term  "  Guild  "  as  used  herein  means  the  National  Textile 
Processors  Guild,  Inc..  a  membership  corporation  organized  under 
the  laws  of  the  State  of  New  York. 

3.  The  term  "  Code  Authority  "  as  used  herein  means  the  Textile 
Processing  Code  Authority  as  designated  in  Article  III  of  this  Code. 

4.  The  term  "Act "  as  used  herein  means  the  National  Industrial 
Recovery  Act  approved  by  the  President  of  the  United  States  June 
16th,  1933. 

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

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

7.  The  term  "Administrator  "  as  used  herein  means  the  Adminis- 
trator for  Industrial  Recovery  duly  appointed  under  the  Act. 

8.  The  term  "  South  "  as  used  herein  means  the  territory  of  the 
following  States:  Alabama,  Arkansas,  Florida,  Georgia,  Kentucky, 
Louisiana,  Mississippi,  North  Carolina,  Oklahoma,  South  Carolina, 
Tennessee,  Texas,  Virginia,  and  West  Virginia. 

Article  II — Labor  Provisions 

1.  Maximum  Iloia's. — Employees  shall  not  be  permitted  to  work 
in  excess  of  forty  hours  per  week,  subject  to  the  flexible  provision 
that  because  of  the  exigencies  of  the  Industry  it  may  be  necessary 
to  work  employees  more  than  forty  hours  per  week  on  occasion,  pro- 
vided that  no  such  employee  shall  work  more  than  an  average  of 
forty  hours  per  w^eek  during  any  twelve  months  and,  provided 
further  that  no  such  emplo3'ee  shall  be  permitted  to  work  in  excess 
of  forty  hours  for  more  than  twenty  ^^•eeks  during  any  twelve  months 


544 

and  not  more  than  forty-eight-hours  in  any  one  week.  Supervisors, 
receiving  and  ship])ing  crews  and  truckmen  may  be  employed  with 
a  tolerance  of  four  hours  in  excess  of  the  standard  maximum  hours 
stated  herein.  Firemen  and  watchmen  may  be  employed  up  to  fifty- 
six  hours  per  week. 

These  restrictions  do  not  apply  to  executives,  supervisory,  labora- 
tory and  office  employees,  engineers,  and  electricians  who  receive  $35 
or  more  per  week  (but  such  employees  who  receive  less  than  $35  per 
week  shall  be  subject  to  the  maximum  hours  provided  herein),  nor 
outside  sales  employees. 

The  hours  in  each  week  during  which  any  employee  shall  have 
Avorked  in  other  establishments  or  in  other  industries,  shall  be  in- 
cluded in  the  total  number  of  hours  such  employee  is  permitted  to 
work  imder  this  Code. 

2.  Minimum  Wage. —  (a)  No  employee  shall  be  paid  for  cotton 
and  rayon  yarn  processing  less  than  thirty-two  and  one  half  cents  per 
hour  or  thirteen  dollars  for  forty  hours  of  labor;  and  for  all  pro- 
cessing less  than  thirty-five  cents  per  hour  or  fourteen  dollars  for 
forty  hours  of  labor;  provided,  however,  with  respect  to  commission 
dyeing  and/or  finishing  of  hosiery,  that  the  minimum  wage  for  forty 
hours  of  labor  for  each  class  of  worker  shall  be  that  provided  in 
this  paragraph,  or  that  provided  in  Sections  1  and  2  of  Article  V 
of  the  Code  of  Fair  Competition  for  the  Hosiery  Industry,  which- 
ever, in  any  case,  may  be  higher. 

Employees  in  the  South  may  be  paid  not  more  than  two  and  one 
half  cents  per  hour  less  than  the  minimum  rates  prescribed  in  the 
foregoing  paragraph. 

The  provisions  for  a  minimum  wage  in  this  Code  shall  establish  a 
guaranteed  minimum  rate  of  pay  per  hour  of  employment,  regardless 
of  whether  the  employees'  compensation  is  otherwise  based  on  a 
time  rate  or  piecework  performance. 

(b)  No  employee  shall  receive  for  forty  hours  of  labor  less  com- 
pensation than  he  received  or  would  have  received  as  of  May  1st, 
1933,  for  not  exceeding  fifty-two  hours  per  week,  and  the  wage  differ- 
entials for  all  operations  shall  be  equitably  readjusted. 

Within  thirty  (30)  days  after  the  effective  date  every  member  of 
the  industry  shall  report  to  the  Code  Authority  action  taken  by  him 
with  respect  to  adjustment  of  wages  above  the  minimum. 

3.  Minors. — No  employee  under  sixteen  years  of  age  shall  be  em- 
ployed in  the  Industry  and  no  employee  under  eighteen  years  of  age 
shall  be  employed  in  any  wet  processing  operation. 

4.  Machine  Hours. — Cone  winding  machines,  reels,  through  tube 
cop  machines  and  parallel  tube  winding  machines  used  in  the  produc- 
tion of  cotton  mercerized  yarn  only  shall  be  subject  to  the  limitation 
of  hours  of  operation  provided  for  similar  machinery  in  the  Code 
of  Fair  Competition  for  the  Cotton  Textile  Industry. 

5.  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  nnitual  aid  or  protection. 

6.  No  employee  and  no  one  seeking  employment  shall  be  required 


545 

as  a  condition  of  employment  to  join  any  company  nnion  or  to  re- 
frain from  joining,  organizing,  or  assisting  a  labor  organization  of 
his  own  choosing. 

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

8.  Within  each  State,  members  of  the  Industry  shall  comply  with 
any  State  laws,  imposing  more  stringent  requirements  regulating 
licensing,  the  age,  wages,  or  hours  of  labor  of  employees,  than  under 
this  Code. 

9.  Redass'ificatimi  of  Employees. — No  employer  shall  reclassify 
employees  or  duties  of  occupation  performed  or  engage  in  any  other 
subterfuge  for  the  purpose  of  defeating  the  purposes  or  provisions 
of  the  Act  or  of  this  code. 

Article  III — Administration 

1.  (a)  To  effectuate  further  the  policies  of  the  Act,  a  Textile 
Processing  Code  Authority  is  hereby  designated  to  cooperate  with 
the  Administrator  as  a  Planning  and  Fair  Practice  Agency  for  the 
Industry.  This  Code  Authority  shall  consist  of  seven  representa- 
tives of  the  Industry  elected  by  a  fair  method  of  selection,  to  be 
approved  by  the  Administrator,  and  up  to  three  members,  without 
vote  and  without  cost  to  the  Industry,  appointed  by  the  Adminis- 
trator. Such  agency  may  from  time  to  time  present  to  the  Admin- 
istrator recommendations  based  on  conditions  in  the  Industry  as 
they  may  develop  which  will  tend  to  effectuate  the  operation  of  the 
provisions  of  this  Code  and  the  policy  of  the  Act ;  such  recommenda- 
tions when  approved  by  the  Administrator  shall  have  the  same  force 
and  effect  as  any  other  provision  of  this  Code. 

(b)  Such  agency  is  also  set  up  to  cooperate  with  the  Adminis- 
trator in  making  investigations  as  to  the  functioning  and  observance 
of  any  provisions  of  this  Code,  at  its  own  instance  or  on  complaint 
by  any  person  affected,  and  to  report  the  same  to  the  Administrator. 

(c)  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  require  an  appropri- 
ate modification  in  the  method  of  selection  oi  the  Code  Authority. 

(d)  It  sliall  be  the  duty  of  the  Code  Authority  for  this  Industry 
to  designate  representatives  to  act  on  a  joint  connnittee  with  repre- 
sentatives of  any  other  Code  Authority  of  a  related  industry  having 
reciprocal  provisions  in  its  code  to  consider  questions  regarded  by 
either  Code  Authority  as  of  common  concern  with  reference  to  the 
effectuation  of  the  policies  of  the  Act  (including  questions  as  to 
whether  the  operations  of  a  given  concern  come  within  the  jurisdic- 
tion of  one  or  the  other  of  the  respective  Codes),  and  to  take  such 
action  as  they  may  jointly  agree  to  be  appropriate  subject  to  the  veto 
of  the  Administrator. 


546 

(e)  With  a  view  to  keeping  the  President  informed  as  to  the 
observance  or  nonobservancc  of  this  Code  of  Fair  Competition  and 
as  to  whether  the  Industry  is  taking  appropriate  steps  to  effectuate 
the  dechired  policy  of  tiie  Act,  each  member  of  the  Industry  will 
furnish  duly  certified  reports  in  such  form  as  the  Code  Authority 
may  require  to  the  Code  Authority  hereinbefore  provided,  or  to 
such  agency  or  agencies  as  the  Code  Authority  may  designate.  These 
reports  shall  contain  such  information  as  the  Code  Authority  may 
i-equire,  subject  to  the  approval  of  the  Administrator.  Such  reports 
shall  be  deemed  confidential  and  shall  not  be  divulged  except  as 
part  of  general  statistics  for  the  Industry  or  a  general  part  thereof, 
except  where  a  violation  of  the  Code  is  suspected. 

(f)  Every  member  of  the  Industry  shall  furnish  to  any  govern- 
ment agency  or  agencies  designated  by  the  Administrator  such  sta- 
tistical information  as  the  Administrator  may,  from  time  to  time, 
deem  necessary  for  the  purpose  recited  in  Section  3  (a)  of  the  Na- 
tional Industrial  Recovery  Act,  and  any  reports  and  other  informa- 
tion collected  and  compiled  by  a  Code  Authority  as  heretofore  pro- 
vided shall  be  transmitted  to  such  government  agencies  as  the 
Administrator  may  direct. 

2.  All  employers  engaged  in  the  Industry  and  coming  under  the 
operation  of  this  Code  shall  bear  their  proportionate  share  of  the 
expense  of  administrating  this  Code  of  Fair  Competition. 

The  reasonable  share  of  the  expenses  of  administration  shall  be 
determined  by  the  Code  Authority,  subject  to  review  by  the  Adminis- 
trator, on  the  basis  of  volume  of  business  and/or  such  other  factors 
as  may  be  deemed  equitable  to  be  taken  into  consideration.  These 
funds  shall  be  paid  to  the  Code  Authority  or  its  duly  constituted 
agency  for  that  purpose. 

3.  If  the  Administrator  shall  determine  that  any  action  of  a  code 
authority  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  days  to  afford 
an  opportunity  for  investigation  of  the  merits  of  such  action  and 
further  consideration  by  such  code  authority  or  agency  pending  final 
action,  which  shill  be  taken  only  upon  approval  by  the  Administrator. 

Article  IV — General  Provisions 

1.  No  provision  of  this  Code  shall  be  permitted  to  operate  in  such 
manner  as  to  promote  monopolies  or  monopolistic  practices  or  to 
eliminate  or  oppress  small  enterprises  or  to  discriminate  against 
them. 

2.  The  labor  provisions  of  this  Code  and  of  other  applicable  Codes 
shall  be  posted  in  each  plant  in  the  Industry,  as  directed  by  the  Code 
Authority, 

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


547 

4.  Such  of  the  provisions  of  this  Code  as  are  not  required  to  be 
inchided  therein  by  the  Act  may,  with  the  approval  of  the  Adminis- 
trator, be  modified  or  eliminated  as  changes  in  circumstances  or 
experience  may  indicate.  It  is  contemplated  that  from  time  to  time 
supplementary  provisions  to  this  Code  or  additional  codes  will  be 
submitted  for  the  approval  of  the  Administrator  to  prevent  unfair 
competition  in  i^rice  and  other  unfair  and  destructive  competitive 
practices  and  to  effectuate  the  other  purposes  and  policies  of  Title  I 
of  the  Act  consistent  with  the  provisions  hereof. 

Article  V — Effective  Date 

This  Code  shall  become  effective  the  first  Monday  after  date. 


Approved  Code  No.  235. 
Registi-y  No.  299-1-13. 


o 


Approved   Code  No.   236 
CODE  OF  FAIR  COMPETITION 

FOR  THE 

COOKING  AND  HEATING  APPLIANCE 
MANUFACTURING  INDUSTRY 

As  Approved  on  January  30,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

COOKING  AND  HEATING  APPLIANCE 
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  Cooking  and  Heating  Appliance  Manu- 
facturing 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  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;  provided,  how- 
ever, that  the  provisions  of  Article  VIII,  (Section  2),  insofar  as 
they  prescribe  a  waiting  period  between  the  filing  with  the  Code 
Authority  and  the  effective  date  of  revised  price  lists  or  revised 

36708° 313-154 34  (549) 


550 

terms  and  conditions  of  sale  be  and  they  are  hereby  stayed  pending 
my  further  Order  either  within  a  period  of  sixty  days  from  the  effec- 
tive date  of  this  Code  or  after  the  completion  of  a  study  of  open 
price  associations  now  being  conducted  b}'^  the  National  Recovery 
Administration. 

Hugh  S.  Johnson, 
Administrator  for  Industrial  Recovery. 
Approval  Recommended : 
W.  A.  Harriman, 

Divis  ion  A  dmini^  t  rat  or. 
Washington,  D.C, 

January  30,193J^ 


The  President, 

The  White  House. 
Sir  :  This  is  a  report  on  the  Code  of  Fair  Competition  for  the 
Cooking  and  Heating  Appliance  Manufacturing  Industry,  and  on 
the  hearing  conducted  thereon  in  Washington,  D.C.,  on  October 
25,  1933,  in  accordance  with  the  provisions  of  the  National  Industrial 
Recovery  Act. 

pro\t:sions  regarding  hours  and  wages 

Employees  are  permitted  to  work  forty  (40)  hours  per  week  and 
eight  (8)  hours  per  day  and,  during  ten  (10)  weeks  during  a  twelve 
(12)  months'  period,  they  are  permitted  to  work  forty-eight  (48) 
hours  per  week. 

Exceptions  are  provided  that  permit  longer  hours  for  watchmen, 
shipping  crews,  foundry  service  men,  office  employees  during  inven- 
tory periods,  executives  and  supervisory  employees  receiving  more 
than  $35.00  per  week,  and  outside  demonstrators,  service  crews,  and 
salesmen  and  for  all  workers  during  emergencies.  The  wage  rate 
for  hours  worked  overtime  shall  be  one  and  one  half  the  normal  rate. 

The  minimum  rate  of  pay  shall  be  forty  (40)  cents  per  hour  for 
male  workers  and  thirty-live  (35)  cents  per  hour  for  female  workers, 
excepting  the  States  of  Virginia,  West  Virginia,  Kentucky,  Ten- 
nessee, North  Carolina,  South  Carolina,  Georgia,  Florida,  Alabama, 
Mississippi,  and  Louisiana,  where  the  minimum  rate  shall  be  twenty- 
seven  ancl  one  half  (27l^)  cents  per  hour.  Female  employees  doing 
substantially  the  same  work  as  male  employees  shall  receive  the 
same  wage. 

The  minimum  rate  for  office  workers  shall  be  $15.00  per  week 
in  cities  of  over  500,000  population  with  lesser  rates  for  smaller 
cities  with  the  limit  of  $12.00  per  week  in  towns  of  less  than  2,500 
population.  Office  hoys  and  girls,  incapacitated  employees,  and 
learners,  shall  be  paid  not  less  than  eighty  (80)  percent  of  the 
minimum  wage,  but  the  number  of  such  employees  is  limited. 

The  wage  rates  of  those  receiving  more  than  the  minimum  rates 
are  to  be  adjusted  equitably  and  in  no  case  shall  the  rates  be  de- 
creased. No  employees  are  to  be  reclassified  so  as  to  defeat  the 
purpose  of  the  Act. 

Persons  under  sixteen  (16)  years  of  age  shall  not  be  employed  and 
none  under  eighteen  (18)  years  at  hazardous  occupations. 

PROVISIONS   FOR    SUPPLEMENTAL   CODES 

It  is  provided  that  subdivisions  of  the  industry  may  formulate 
supplementar}^  codes  but  the  employment  provisions  shall  conform 
with  this  basic  code. 

(551) 


552 

ECONOMIC    AND    STATISTICAL    MATERIAL 

The  industry  is  widely  distributed  over  the  country  although  it  is 
estimated  that  three  fourths  of  it  is  located  in  the  Northern  wage 
district  and  one  fourth  in  the  Southern  Avage  district. 

The  industry  has  furnished  statistical  information  showing  that 
in  June  1933  wage  rates  for  common  labor  had  been  reduced  twelve 
(12)  cents  per  hour  in  both  the  Northern  and  Southern  districts, 
from  forty-six  (46)  cents  and  twenty-seven  (27)  cents  per  hour  re- 
spectively, from  the  wage  rates  of  1929.  Under  the  code,  one  half 
of  the  reduction  in  the  Northern  wage  district  will  be  regained  and 
the  increase  in  the  Southern  wage  district  will  more  than  compensate 
the  reduction. 

There  are  no  data  on  the  number  of  workers  employed  prior  to 
June  1933,  but  it  is  estimated  that  under  the  code  employment  will 
be  increased  from  14,000  to  15,500,  an  improvement  of  ten  percent. 
It  is  also  estimated  that  the  Aveekly  pay  roll  of  the  industry  will 
increase  sixteen  percent  under  the  code. 

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  Recover}^  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  agi'icul- 
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. 


553 

(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, 

Ad'tninistrator, 
January  30,  1934. 


CODE  OF  FAIR  COMPETITION 

FOR  THE 

COOKING  AND  HEATING  APPLIANCE  MANUFACTURING 

INDUSTRY 


ArTICI.E  I PlTRPOSES 

To  effectuate  the  policies  of  Title  I  of  the  National  Industrial 
EecoA'ery  Act,  this  Code  is  submitted  as  a  Code  of  Fair  Competi- 
tion for  the  Cooking  and  Heating  Appliance  Manufacturing 
Industry,  and  upon  approval  by  the  President,  its  provisions  shall 
be  the  standards  of  fair  competition  for  such  industry  and  shall  be 
binding  upon  every  member  thereof. 

Article  II — Definitions 

1.  The  term  Cooking  and  Heating  Appliance  Manufacturing  In- 
dustry as  used  herein  includes  the  manufacture  and  sale  of  all  designs 
of  cooking  and  heating  stoves  and  ranges  and  parts  thereof,  using 
coal  and  wood  or  combinations  of  various  fuels. 

2.  The  term  ''  ^lember  of  the  Industry  "  includes,  ])ut  without 
limitation,  any  individual,  partnership,  association,  corporation,  or 
other  form  of  enterprise  engaged  in  the  industry,  either  as  an  em- 
i:)loyer  or  on  his  or  its  own  behalf. 

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

4.  The  terms  "President",  "Act",  and  "Administrator"  as  used 
herein  respectively  mean,  the  President  of  the  United  States,  the 
National  Industrial  Recovery  Act  and  the  Administrator  for  In- 
dustrial Recovery. 

5.  *'  Population  "  for  the  purposes  of  this  code  shall  be  determined 
by  reference  to  the  latest  Federal  census. 

Article  III — Hours 

1.  Maxivnim  Hovn^. — Xo  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  herein  otherwise  pro- 
vided, but  with  the  right  to  work  a  nuixinuun  of  forty-eight  (48) 
hours  per  Aveek  for  any  ten  (10)  weeks  during  a  twelve  (12)  months 
period. 

(5;-i4) 


555 

2.  Exceptions  as  to  Hon  is. — (a)  Provided,  however,  that  em- 
ployees working  on  emergency  maintenance  or  emergency  repair 
work  involving  breakdown  or  protection  of  life  or  property  may 
work  ten  percent  (10%)  additional  hours. 

(b)  Provided  further,  that  shipping  crews  and  foundry  service 
men  whose  duties  are  servicing  the  cupola  and  changing  flasks  and 
patterns  for  moulders  are  to  have  a  tolerance  of  one  hour  per  day, 
when  necessary. 

(c)  Outside  demonstrators  and  outside  service  crews  whose  trav- 
eling expenses  are  paid  by  the  employer,  and  outside  salesmen,  are 
exempt  from  the  above  hour  provisions. 

(d)  Office  employees  during  the  annual  inventory  period  may 
work  an  additional  thirty-six  hours  in  any  two  weeks  period  at  the 
discretion  of  the  employer,  provided  that  it  shall  not  exceed  three 
hours  per  day. 

(e)  Watchmen  may  not  w'ork  more  than  fifty-six  (56)  hours  in 
ever}^  seven  (7)  days  nor  more  than  six  (6)  days  out  of  every 
seven  (7)  days. 

3.  All  classes  of  workers  are  exempt  from  the  foregoing  hour  pro- 
visions when  an  emergency  arises  such  as  a  fire,  flood,  or  cyclone, 
or  other  unpredictable  emergencies,  which  cause  operations  to  cease; 
such  exemptions  may  cover  the  actual  number  of  hours  lost  as  a 
result  of  such  emergency. 

4.  Any  employee  at  the  request  of  the  emploj^er  may  work  ad- 
ditional hours  beyond  those  specified  above,  provided  such  addi- 
tional hours  are  paid  for  at  the  rate  of  time  and  one  half. 

5.  Executives  and  their  staffs,  supervisore,  and  office  employees, 
making  thirtj^-five  dollars  ($35.00)  per  week  or  more,  are  exempt 
from  the  maximum  hours  fixed  in  this  code. 

6.  No  employer  shall  knowingly  permit  any  employee  to  work  for 
any  time  which,  w^hen  totallecl  with  that  already  performed  w-ith 
another  employer  or  employers  in  this  industry,  exceeds  the  maximum 
permitted  herein. 

Article  IV — Wages 

1.  No  employees  shall  be  paid  less  than  the  rate  of  forty  cents  (40^) 
per  hour  for  male  workers  and  thirty-five  cents  (35^)  per  hour  for 
female  workers  except  employees  employed  in  the  States  of  Virginia, 
West  Virginia,  Kentuckj',  Tennessee,  North  Carolina,  South  Caro- 
lina, Georgia,  Florida,  Alabama,  Mississippi,  and  Louisiana,  who 
shall  be  paid  not  less  than  twenty-seven  and  one  half  cents  (271/2^) 
per  hour  for  male  and  female  woi'kers. 

2.  Provided  that  office  workers  shall  not  be  paid  less  than  $15.00 
per  week  in  any  city  of  over  500,000  population,  or  in  the  immediate 
trade  area  of  such  city;  nor  less  than  $14.50  in  any  city  of  between 
250,000  and  500,000  population,  or  in  the  immediate  trade  area  of 
such  city ;  nor  less  than  $14.00  per  week  in  any  city  of  between  2,500, 
and  250,000  population,  or  in  the  immediate  trade  area  of  such  city; 
nor  less  than  $12.00  per  week  in  towns  of  less  than  2,500  population, 
except  that  office  boys,  girls,  and  messengers  shall  not  be  paid  less 
than  eighty  per  cent  (80% )  of  the  minimum  rate  specified  herein. 
The  number  of  office  boys,  girls,  and  messengers  shall  not  exceed 
one  for  ever}^  ten  office  employees. 


556 

3.  Provided,  further,  that  learners  and  superannuated  or  'physi- 
cally incapacitated  employees  shall  not  exceed  in  any  calendar  month 
five  percent  (5%)  of  the  total  number  of  employees  and  shall  be 
paid  at  least  eightj^  percent  (80%)  of  the  minimum  wage.  A 
learner  shall  be  defined  as  one  who  has  had  no  previous  experience 
in  the  class  of  work  for  which  he  is  employed  and  may  be  so  classed 
for  one  period  of  ninety  (90)  days. 

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

5.  The  hourly  wage  rates,  base  piecework  rates,  or  salaries  of  em- 
ployees receiving  more  than  the  minimum  rates  herein  prescribed 
shall  be  equitably  adjusted,  if  this  has  not  already  been  done,  and  in 
no  case  shall  the  rates  be  decreased.  Action  taken  shall  be  reported 
to  the  Code  Authority  not  later  than  fifteen  (15)  days  after  the 
effective  date  of  this  Code  and  to  the  Administrator  at  his  request. 

Article  V — State  Law  Requirements 

Within  each  State  this  Code  shall  not  supersede  any  laws  of 
such  State  imposing  more  stringent  requirements  than  those  under 
this  Code  with  reference  to  regulating  the  age  of  employees,  wages, 
hours  of  work,  fire,  or  general  working  conditions. 

Article  VI — General  Labor  Provisions 

1.  Employers  shall  not  employ  or  permit  to  be  emploj^ed  any 
person  under  the  age  of  sixteen  (16)  years,  provided  that  no  person 
under  the  age  of  eighteen  (18)  years  shall  be  employed  in  a  hazardous 
occupation.  The  Code  Authority  shall  report  within  ninety  (90) 
days  such  hazardous  occupations  to  the  Administrator. 

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

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

4.  Employers  shall  comply  Avith  the  maximum  hours  of  labor, 
minimum  rates  of  pay,  and  other  conditions  of  employment  approved 
or  prescribed  by  the  President  for  this  industry  in  its  approved  code. 

5.  The  Code  Authority  shall  require  that  the  pay  rolls  of  all 
employers  of  the  industry  contain  the  names  of  all  employees,  show- 
ing the  number  of  hours  and  compensation  paid  therefor,  regardless 
of  whether  the  wages  of  any  employee  be  paid  by  the  employer  or 
by  another  employee  for  services  rendered  in  connection  with  the 
task  or  production  of  another  employee  or  employees. 

6.  No  employer  shall  reclassify  employees  or  duties  or  occupations 
of  employees  for  the  purpose  of  defeating  the  purposes  or  provisions 
of  the  Act. 


557 

7.  Female  employees  performing  substantially  the  same  work  as 
male  employees  shall  receive  the  same  rate  of  pay  as  male  employees. 

8.  All  employers  shall  post  copies  of  the  labor  provisions  of  this 
code  in  a  conspicuous  place  accessible  to  employees. 

AuTioLE  VII — Orgaxization,  Powers,  and  Duties  of  the  Code 

Authority 

1.  Orgamzatian  and  C anstitution. — There  shall  forthwith  be  con- 
stituted a  Code  Authority  consisting  of  three  (3)  members  of  the 
Board  of  Trustees  of  the  Institute  of  Cooking  and  Heating  Appli- 
ance Manufacturers,  Inc.,  who  shall  be  elected  by  said  Board. 

2.  In  addition  to  membership  as  above  provided,  there  may  be  from 
one  to  three  members  without  vote,  to  be  appointed  by  the  Admin- 
istrator, to  serve  for  a  term  of  from  six  months  to  one  year  from 
the  date  of  appointment. 

3.  The  Institute  of  Cooking  and  Heating  Appliance  Manufac- 
turers, Inc.,  shall  (1)  impose  no  inequitable  restrictions  on  member- 
ship, and  (2)  submit  to  the  Administrator  true  copies  of  its  articles 
of  incorporation,  bylaws,  regulations,  and  any  amendments  when 
made  thereto,  together  with  such  other  information  as  to  member- 
ship, organization,  and  activities  as  the  Administrator  may  deem 
necessary  to  effectuate  the  purposes  of  the  Act. 

4.  In  order  that  the  Code  Authority  shall  at  all  times  be  truly 
representative  of  the  industry  and  in  other  respects  with  the  provi- 
sions 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.  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  formulating,  putting  into 
effect,  and  administering  this  code.  Such  reasonable  share  of  the 
expenses  of  formulating,  putting  into  effect,  and  administering  this 
code  shall  be  determined  by  the  Code  Authority  subject  to  disap- 
proval by  the  Administrator,  on  the  basis  of  volume  of  business 
and/or  such  other  facts  as  may  be  deemed  equitable.  Failure  of 
any  employer  to  pay  his  proportionate  share  fixed  by  the  Code  Au- 
thority will  deprive  him  of  his  participation  in  the  benefits  of  the 
code  but  will  not  remove  his  obligation  to  pay  his  due  and  unpaid 
a.ssessments. 

6.  Nothing  in  this  code  shall  constitute  the  members  of  the  Code 
Authority  partners  for  any  purpose. 

7.  Powers  ami  Duties. — The  Code  Authority  shall  have  the  fol- 
lowing further  powers  and  duties,  the  exercise  of  which  shall  be 
reported  to  the  Administrator  and  shall  be  subject  to  his  right,  on 
revieAv,  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. 


558 

(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  Board  of  Trustees. 

(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  government 
agencies  as  the  Administrator  may  designate ;  provided  that  nothing 
in  this  code  shall  relieve  any  member  of  the  industry  of  any  exist- 
ing 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  the  Institute  of  Cooking  and  Heating  Appliance  Manu- 
facturers, Inc.,  and  other  agencies  as  it  deems  proper  for  the  carry- 
ing out  of  any  of  its  activities  provided  for  herein;  provided  that 
nothing  herein  shall  relieve  the  Code  Authority  of  its  duties  or  re- 
sponsibilities under  this  code  and  that  the  Institute  of  Cooking  and 
Heating  Appliance  Manufacturers,  Inc.,  and  other  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 
proportionate  payment  of  the  reasonable  expenses  of  maintaining 
the  Code  Authority  and  its  activities. 

(g)  To  cooperate  with  the  Administrator  in  regulating  the  use 
of  any  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  VIII — Costs  and  Prices 

1.  No  member  of  the  industry  shall  sell  any  commodity  at  a  price 
below  his  own  allowable  cost  except  that  any  member  of  the  indus- 
try may  meet  the  price  competition  of  any  one  whose  allowable  costs 
under  this  provision  are  lower.  Permission  to  exercise  this  option 
of  selling  below  allowable  cost  shall  be  presumed  to  be  granted  when 
a  manufacturer  has  reported  to  the  Code  Authority  the  fact  that 
he  must  sell  below  cost  and  shall  cite  the  specific  com2:)etition.  Al- 
lowable cost  shall  be  determined  in  accordance  with  the  standard 
cost  principles  formulated  by  the  Code  Authority  with  the  approval 
of  the  Administrator. 

2.  Within  ten  days  after  the  effective  date  of  this  code,  every  mem- 
ber of  the  industry  shall  file  with  the  confidential  agent  designated 
by  the  Code  Authority  his  sales  prices,  discounts,  and  terms  then 
in  effect;  such  sales  i)rices,  discounts,  and  terms  must  provide  rea- 


559 

sonable  diflPerences  for  each  class  of  buyer.  Every  member  of  the 
industry  must  file  with  the  confidential  agent  any  reductions  made 
such  sales  prices,  and  any  changes  in  discounts,  terms,  or  classifica- 
tions, ten  days  prior  to  the  date  on  which  they  become  effective.^ 

Article  IX — Trade  Practices 

The  practices  and  methods  set  forth  in  the  following  paragraphs 
in  this  Article  IX  are  hereby  designated  as  mifair  methods  of  compe- 
tition and  the  indulgence  by  any  member  of  the  industry  in  any  of 
the  same  shall  be  a  violation  of  this  code : 

1.  Consignment. — Makmg  any  agreement  or  contract  after  the  ef- 
fective date  of  this  code,  the  effect  of  which  will  amount  to  the  sale 
and/or  delivery  of  cooking  and  heating  appliances  on  consignment 
and  to  discontinue  forthwith  any  consignment  arrangements  now  in 
effect. 

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

3.  Underselling  reported  prices^  discounts^  and  terms. — Offering 
any  product  of  the  industry  for  sale  at  less  than  his  sales  prices,  dis- 
counts, and  terms,  as  filed  with  the  confidential  agent  designated  by 
the  Code  Authority. 

4.  Redating. — Allowing  terms  of  payment  more  liberal  than  those 
stated  in  the  original  sales  terms  of  each  member  of  the  industry  as 
filed  with  the  confidential  agent  designated  by  the  Code  Authority. 
This  applies  to  deliberate  action  on  the  part  of  a  member  of  the 
industry  who  allows  a  purchaser  to  keep  goods  to  be  paid  for  when 
sold,  and  does  not  apply  to  a  manufacturer  who  makes  an  actual 
effort  to  collect  on  same. 

5.  Repurchase  Agreements. — Selling  or  offering  to  sell  any  mer- 
chandise with  a  repurchase  agreement, 

6.  Allowance  for  Retm^ned  Goods. — Acceptance  of  returns  of  obso- 
lete goods  or  overstock  from  a  customer  in  exchange  for  new  stocks 
or  other  values. 

7.  Excessive  Allowance  for  Second-hand  Goods. — Purchasing  or 
allowing  credit  for  second-hand  merchandise  at  an  amount  greater 
than  its  fair  wholesale  market  value,  except  when  merchandise  of  his 
own  manufacture  is  returned  because  of  defect  in  design  or  operation. 

8.  Rehates. — The  extension  to  certain  purchasers  of  advertising 
allowances,  special  services,  privileges,  or  discounts  or  the  payment 
or  allowance  of  rebates,  refunds,  commissions,  credits,  or  unearned 
discounts  whether  in  the  form  of  money  or  otherwise,  not  extended 
to  all  purchasers  on  like  terms  and  conditions. 

9.  Premiums. — Giving  premiums  in  the  sale  of  merchandise.  ^ 

10.  False  Description. — The  false  description  of  an}^  product  of  the 
industry  which  has  the  tendency  to  mislead  or  deceive  customers  or 
prospective  customers,  Avhether  as  to  grade,  quality,  type,  origin,  size, 
capacity,  finish,  or  preparation  of  any  product  of  the  industry,  or 
otherwise. 

11.  Commercial  Brihrry. — No  member  of  the  industry  shall  give, 
permit  to  be  given,  or  directly  offer  to  give,  anything  of  value  for 


'  See  paragraph  2  of  order  approving  this  Code. 


560 

the  purpose  of  influencing  or  rewarding  the  action  of  any  employee, 
agent,  or  representative  of  another  in  relation  to  the  business  of  tlie 
employer  or  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  pro- 
hibit free  and  general  distribution  of  articles  commonly  used  for  ad- 
vertising except  so  far  as  such  articles  are  actually  used  for  commer- 
cial bribery  as  hereinabove  defined. 

12.  Excessive  Inducements. — To  extend  excessive  inducements  or 
entertainment  to  customers,  or  prospective  customers,  which  tend  to 
add  unduly  to  sales  costs, 

13.  Defamation. — The  defamation  of  competitors  by  falsely  im- 
puting to  them  inability  to  perform  contracts,  questionable  credit 
standing,  or  by  other  false  representation  or  by  the  false  disparage- 
ment of  the  grade  or  quality  of  their  goods. 

14.  Threat  of  Litigation. — The  publishing  or  circularizing  of  un- 
founded threats  of  suits  for  infringement  of  patents  or  trade  marks 
or  of  any  legal  proceedings  without  cause  which  tend  to  have  the 
effect  of  harassing  competitors  or  intimidating  their  customers. 

15.  Misrepresentation  or  False  or  Misleading  Advertising. — The 
making  or  causing  or  permitting  to  be  made  or  published  any  false, 
materially  inaccurate  or  deceptive  statement  by  way  of  advertising 
or  otherwise,  wdiether  concerning  the  grade,  quality,  type,  origin, 
size,  capacity,  finish,  or  preparation  of  any  products  of  the  industry, 
or  the  credit  terms,  values,  policies,  or  services  of  any  member  of 
the  industry,  or  otherwise,  having  the  tendency  and  capacity  to 
mislead  or  deceive  customers  or  prospective  customers. 

16.  Piracy  of  Trade  Marks  and  Trade  Names. — The  imitation  of 
a  trade  mark,  trade  name,  slogan,  or  the  other  marks  of  identifica- 
tion of  competitors  having  the  tendency  to  mislead  or  deceive. 

17.  Imitation  of  Stoves  or  Parts. — So  long  as  the  maker  of  any 
trade-marked  cooking  and  heating  stoves  or  ranges  (or  his  successor 
in  business)  continues  to  make  and  supply  repair  parts  therefor,  it 
shall  be  an  unfair  method  of  competition  for  any  other  person  to 
make  and  supply  stoves  or  ranges  or  parts  thereror  unless  (a)  the 
name  of  the  maker  of  such  stoves  or  ranges  or  repair  parts  therefor 
is  plainly  marked  on  each  part  (or  if  this  is  impracticable,  on  the 
package  or  tag)  and  unless  (b)  said  stoves  or  ranges  or  parts  are 
otherwise  marked,  packaged,  and  sold  without  imitative  labels,  and 
in  such  manner  as  to  clearly  indicate  to  the  ultimate  user  that  they 
are  not  made  by  the  maker  of  the  original  cooking  and  heating  stove 
or  range. 

18.  Disposal  of  Distress  Merchandise. — There  shall  be  no  disposal 
of  dropped  lines,  seconds,  excess  inventories,  or  distress  merchandise 

^except  in  accordance  with  the  procedure  to  be  outlined  by  the  Code 
Authority  subject  to  disapproval  by  the  Administrator  for  the  pro- 
tection or  the  owners  and  to  promote  sound  and  stable  business  con- 
ditions. 

19.  Interference  with  Contractual  Relations. — Maliciously  induc- 
ing or  attempting  to  induce  the  breach  of  an  existing  oral  or  written 
contract  between  a  competitor  and  his  customer  or  source  of  supply, 
or  interfering  with  or  obstructing  the  performance  of  any  such  con- 
tractual duties  or  services. 


561 

20.  Splitting  Commissions. — Every  employer  using  salesmen  who 
are  compensated  Avholly  or  partially  on  a  commission  basis  shall  by 
contract  require  each  such  salesman  to  agree  that  no  part  of  the 
commission  earned  hy  him  in  connection  with  the  sale  of  any 
product  of  the  cooking  and  heating  appliance  manufacturing  indus- 
try shall  be  paid  or  allowed  to  any  purchaser, 

21.  Excessive  AUoivance  of  Literature. — To  furnish  literature  to 
customers  without  charge,  except  in  modest  quantities  for  distribu- 
tion. 

Article  X — Supplemental  Code  Option 

It  is  understood  that  trade  groups  or  groups  of  manufacturers 
representing  a  substantial  part  of  any  specific  subdivision  of  this 
industry,  may  formulate  supplementary  codes  of  fair  competition 
defining  specifically  the  subdivision  and  covering  such  regulations  as 
are  considered  advisable  by  them.  However,  all  employment  provi- 
sions of  such  supplementary  codes  shall  conform  with  this  basic 
code.  Such  codes  when  approved  by  the  President  shall  have  tho 
same  force  and  effect  as  this  basic  code. 

Article  XI — 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  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  on  the  basis  of  experience  or  changes  in  circumstances,  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  by  the  President. 

Article  XII — Monopolies,  Etc. 

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

Article  XIII — Effective  Date 

This  code  shall  become  effective  on  the  second  Monday  after  itai 
approval  by  the  President. 

Article  XIV — Expiration  Date 

The  expiration  date  of  this  code  shall  be  June  16,  1935,  or  the 
earliest  date  prior  thereto  on  which  the  President  or  the  Congressj 
shall  by  joint  resolution  declare  that  the  emergency  recognized  byj 
Title  I  of  the  Act  has  ended. 


Approved  Ck)(le  No.  230. 
IlegibtiT  No.  1629^1-02. 


O 


Approved   Code   No.   237 
CODE  OF  FAIR  COMPETITION 

FOR  THE 

ALLOY  CASTING  INDUSTRY 
As  Approved  on  January  SO,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

ALLOY  CASTING  INDUSTRY 

All  application  having  been  duly  made  pursuant  to  and  in  full 
compliance  with  the  provisions  of  Title  I  of  the  National  Industrial 
Recovery  Act,  approved  June  IG,  1933,  for  approval  of  a  Code  of 
Fair  Competition  for  the  Alloy  Casting  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  di- 
rected 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  F'air  Com- 
petition be  and  it  is  hereby  approved;  provided  that  the  continued 
participation  of  the  Alloy  Casting  Association  in  the  Code  Authority 
after  thirty  days  from  the  effective  date  of  this  Code  shall  be  contin- 
gent upon  its  amending  its  constitution  and  by-laws  to  the  satisfac- 
tion of  the  Administrator;  and  furtlier  provided  that  the  provisions 
of  Article  VII,  (Section  1),  insofar  as  they  prescribe  a  waiting  pe- 
riod between  the  filing  with  tlu'  Code  Authority  and  the  effective 
date  of  revised  price  lists  or  revised  terms  and  conditions  of  sale  be 

36707° 313-155 34  (CtG?,) 


564 

and  they  are  hereby  stayed  pending  my  further  Order  either  witliin  a 
period  of  sixtv  daj^s  from  the  eifective  date  of  this  Code  or  after  tiie 
complet;-'^!!  of  a  study  of  open  price  associatioris  now  being  con- 
ducted by  the  National  Recovery  Administration. 

Hugh  S.  Johnson, 
xidministrafor  for  Industrial  Recovery. 

Approval  recommended. 
W.  A.  Harriman, 

Division  Administrator. 

Washington,  D.C, 

January  SO,  1934. 


The  President, 

The  White  House. 

Sir:  This  is  a  report  on  the  Code  of  Fair  Competition  for  the 
Alloy  Casting  Industry  as  revised  after  the  hearing  conducted 
thereon  in  Washington,  D.C.,  on  November  2,  1933,  in  accordance 
with  the  provisions  of  the  National  Industrial  Recovery  Act. 

PROVISIONS    REGARDING    HOURS    AND    WAGES 

This  Code  provides  for  a  maximum  Avork  week  of  forty  (40) 
hours,  with  permission  for  forty-eight  (48)  hours  per  week  during 
peak  periods,  not  to  exceed  twelve  (12)  weeks  in  any  year.  A 
tolerance  of  ten  (10)  percent  longer  hours  is  provided  for  repair 
Avork  employees  during  emergencies. 

Those  Avho  are  exempted  from  the  provision  for  maximum  hours 
are  managers,  executives,  and  research  technicians,  receiving  more 
than  thirty-five  dollars  ($35.00)  per  week,  outside  salesmen  and 
service  men  and  watchmen.  The  Avatchmen  are  limited  to  fifty-six 
(56)  hours  per  Aveek. 

The  minimum  Avage  rate  provided  is  forty  (40)  cents  per  hour, 
regardless  of  the  basis  upon  Avhich  Avorkers  are  compensated.  Ex- 
ceptions are  made  for  partially  incapacitated  workers.  Office  Avork- 
ers  are  to  be  paid  not  less  than  fifteen  dollars  ($15.00)  per  AA'eek, 
and  office  boys  and  girls  are  to  be  paid  at  not  less  than  eighty  (80) 
percent  of  the  minimum  weekly  Avage. 

Equitable  adjustments  of  wages  abo\'e  the  minimum  are  provided 
for  and  employers  are  prohibited  from  reclassifying  employees  so 
as  to  defeat  the  purpose  of  the  Act. 

ECONOMIC   AND   STATISTICAL   MATERIAL 

The  industry  is  small  and  comparatiA'ely  new.  The  invested  capi- 
tal amounts  to  $4,000,000  and  the  annual  sales  volume,  calculated 
on  the  rate  of  operations  during  NoA'ember,  Avas  $1,700,000  although 
the  annual  capacitv  of  the  industiT.  expressed  in  dollar  volume,  is 
$16,000,000. 

The  number  of  employees  in  1929  Avas  900,  in  1932  it  was  500,  in 
October  1933,  600,  and  under  the  Code  it  is  estimated  that  650  per- 
sons Avill  be  emplo3^ed,  an  increase  of  about  nine  (9)  percent.  It  is 
estimated  that  the  pay  roll  of  the  industry  will  be  increased  about 
$1,000  per  Aveek. 

riNDINGS 

Tiie  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 : 

(565) 


566 

I  find  that— 

(a)  Said  Code  is  well  designed  to  promote  tlie  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  vrill  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  per- 
tinent provisions  of  said  Title  of  said  Act,  including  w^ithout  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  Indus- 
try; 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  subject  to 
the  following  condition :  that  the  continued  participation  of  the 
Alloy  Casting  Association  in  the  Code  Authority  after  thirty  days 
from  the  effective  date  of  this  Code  shall  be  contingent  upon  its 
amending  its  constitution  and  bylaws  to  the  satisfaction  of  the 
Administrator. 

Respectfully, 

Hugh  S.  Johnson, 

A  dmimstrator. 
January  30,  1934. 


CODE  OF  FAIR  COMPETITION 

FOR   THE 

ALLOY  CASTING  INDUSTRY 


To  effectuate  the  policies  of  Title  I  of  the  National  Industrial 
Recovery  Act,  the  following  provisions  are  established  as  a  Code  of 
Fair  Competition  for  the  Alloy  Casting  Industry,  which  shall  be  the 
standard  of  fair  competition  for  the  industry,  and  shall  be  binding 
upon  every  member  thereof. 

Article  I — Definitions 

The  term  "  alloy  castings  '*  as  used  herein  includes  only  castings 
containing  nickel  and/or  chromium  in  excess  of  16%  and  substan- 
tially free  from  copper,  zinc,  lead,  or  tin,  except  that  this  Code  shall 
not  apply  to  alloy  castings  produced  and/or  sold  as  a  part  of  the 
products,  including  finished  and  semifinished  parts  thereof,  of  an 
owning  or  affiliated  company  but  not  sold  in  the  open  market  as 
rough  alloy  castings  (as  distinguished  from  finished  and/or  semi- 
finished parts)  in  competition  with  similar  rough  castings  produced 
b}'  other  manufacturers. 

"  The  term  ''  affiliated  company  "  means  a  company  whose  relations 
to  another  company  are  such  that  either  one  has  directly  or  indi- 
rectly more  than  50%  stock  interest  in  the  other,  or  that  a  third 
company  has  directly  or  indirectly  more  than  50%  stock  interest 
in  both. 

The  term  "  member  of  the  industry  ''  as  used  herein  means  and 
includes  any  manufacturer  of  products  subject  to  this  code. 

The  terni^  "  association  "'  as  used  herein  means  the  Alloy  Casting 
Association.  Inc..  a  nonprofit  corporation  devoted  to  the  betterment 
of  the  industry  and  the  effectuation  of  the  National  Industrial 
Recovery  Act. 

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. 

Article  II — Hours 

Section  1.  Except  as  hereinafter  stated  no  employer  shall  employ 
an}'^  employee  for  more  than  forty  (40)  hours  in  any  week,  pro- 
vided, however,  that  in  order  to  meet  increased  demands  over  which 
the  emplo5'ers  have  no  control,  the  said  hours  of  employment  may 

(567) 


568 

be  increased  to  meet  such  contingencies,  but  in  no  event  shall  such 
employees  work  more  than  a  total  of  forty-eight  (48)  hours  per 
week  for  not  to  exceed  twelve  (12)  weeks  in  any  year.  Repair- work 
employees,  to  the  extent  required  by  emergencies  may  be  employed  up 
to  10%  longer  hours  than  other  factory  employees. 

Sec,  2.  All  employees  of  every  kind  and  character  of  every  em- 
ployer are  included  In  this  Article  II,  except  executives,  those  em- 
l^loyed  in  a  managerial  or  executive  or  supervisory  capacity,  or  as 
research  technicians,  who  receive  more  than  $35  per  week,  traveling 
and  outside  salesmen,  and  outside  service  men,  when  expenses  are 
paid  by  the  company;  and  watchmen,  provided  that  such  watchmen 
are  not  employed  in  excess  of  56  hours  per  week,  or  six  days  out  of 
seven. 

Sec.  3.  No  employer  shall  knowingly  permit  any  employee  to 
work  for  any  time  which,  when  totaled  with  that  already  performed 
with  another  employer  or  employers,  exceeds  the  maximum  permitted 
herein. 

Sec.  4.  The  industry  recognizes  the  desirability  and  accepts  the 
principle  of  the  eight  hour  working  day  for  labor  and,  insofar  as 
it  reasonabl}'  can,  the  industry  will  endeavor  to  employ  its  labor  on 
that  basis. 

Article  III — Wages 

Section  1.  No  employee  of  an  employer  shall  be  paid  less  than 
forty  (40)  cents  per  hour,  except  as  hereinafter  provided. 

Sec.  2.  This  article  establishes  a  minimum  rate  of  pay  which  shall 
appW,  irrespective  of  whether  an  employee  is  actually  compensated 
on  a  time  rate,  piecework,  or  other  basis. 

Sec.  3.  No  employee  engaged  in  office  or  clerical  work  and  no 
salaried  employees  shall  be  paid  less  than  at  the  rate  of  $15.00  per 
week  excepting  office  or  messenger  boys  or  girls  who  shall  be  paid  at 
the  rate  of  not  less  than  80%  of  the  above  minimum  salar}^  One 
such  messenger  or  office  boy  or  girl  may  be  employed  in  any  office 
regardless  of  the  number  of  employees  and  additional  such  messenger 
or  office  boys  or  girls  may  be  employed  not  to  exceed  one  to  each 
twenty  other  office  employees. 

Sec.  4.  Not  later  than  ninety  (90)  days  after  the  effective  date  of 
this  Code,  each  employer  in  the  industry  shall  report  to  the  Admin- 
istrator, through  the  Code  Authority  hereinafter  provided  for,  the 
action  taken  by  such  employer  in  adjusting  the  hourly  wage  rates  for 
all  employees  receiving  more  than  the  minimum  rates  provided  in 
Sections  1  and  3  of  this  Article  III.  Such  adjustment  shall  not 
leduce  the  hourly  wage  rate  of  any  such  employee. 

Sec  5.  A  person  Avhose  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  Sta^tes 
I)ei)artment  of  Labor  a  certificate  authorizing  his  employment  at 
such  wages  and  for  such  hours  as  shall  l)e  stated  in  the  certificate. 
Each  employer  shall  file  with  the  Code  Authority  a  list  of  all  such 
persons  employed  by  hini. 


569 
Artici-e  IV — 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  eniplo3'ed  at  operations  or  occupations  which  are 
hazardous  in  nature  or  dangerous  to  health.  TJie  Code  Authority 
shall  submit  to  the  Administrator  within  ninety  (90)  da^'s  a  list  of 
such  operations  or  occupations. 

Sec.  2.  In  compliance  with  Section  7  (a)  of  the  Act,  it  is  provided 
that : 

(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  sucli  representatives  or 
in  self-organization  or  in  other  concerted  activities  for  the  j^u'pose 
of  collective  bargaining  or  other  mutual  aid  or  protection. 

(b)  No  employee  and  no  one  seeking  employment  shall  be  required 
as  a  condition  of  employment  to  join  any  company  union  or  to  re- 
frain from  joining,  organizing,  or  assisting  a  labor  organization  (»f 
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.  No  employer  shall  reclassify  employees  or  duties  or  occupa- 
tions for  the  purpose  of  defeating  the  purposes  or  provisions  of  the 
Act  or  of  this  Code  or  engage  in  any  subterfuge  for  such  purpose. 

Sec.  4.  No  employer  or  employee  shall  contract  his  work  to  any 
person  except  when  such  person  is  subject  to  the  provisions  of  this 
Code. 

Sec.  5.  Every  employer  shall  make  reasonable  provision  to  the 
extent  required  by  existing  law  for  the  safety  and  health  of  his  em- 
ployees at  the  place  and  during  the  hours  of  their  employment. 

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

Sec.  7.  Each  employer  .shall  post  in  conspicuous  places  Articles 
II,  III.  and  IV,  the  Labor  Provisions  of  this  Code. 

Artici-e  V — Administration 

Section  1.  To  further  effectuate  the  policies  of  the  National  Indus- 
trial Recovery  Act,  the  7  members  of  the  Executive  Committee  of  the 
Association  then  in  office  are  set  up  to  coo}>erate  with  the  Adminis- 
trator of  the  National  Industrial  Recovery  Act  as  the  "  Code  Au- 
thority "  to  administer  the  provisions  of  this  Code.  If  the  Admin- 
istrator hereafter  shall  find  that  the  Code  Authority  is  not  truly 
representative  of  the  industry  or  does  not  in  other  respects  comply 
with  the  provisions  of  the  Act,  he  may  require  an  appropritate  modi- 
fication in  the  metliod  of  selecting  the  Code  Authority.  The  Admin- 
istrator may  appoint  from  one  to  three  representatives  Avithout  vote 
to  serve  on  the  Code  Authority  whose  terms  of  office  shall  be  so  ar- 
ranged that  the  services  of  not  more  than  one  expires  in  any  one  year. 


570 

These  appointees  shall  be  persons  not  having  or  representing  inter- 
ests selfish  or  antagonistic  to  the  interest  of  members  of  the  Alloy 
Casting  Industry.  Absence  of  such  representatives  from  any  meet- 
ing of  this  Committee  shall  not  prevent  its  complete  functioning/ 

Sec.  2.  Members  of  the  industry  shall  be  entitled  to  share  the 
benefits  of  the  activities  of  the  Code  Authority  by  assenting  to  and 
complying  with  the  requirements  of  this  Code  and  sustaining  their 
reasonable  share  of  the  expenses  of  its  administration.  Such  rea- 
sonable 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.  3.  The  manufacturers  engaged  in  the  industry  will  furnish 
such  information  and  make  such  reports  to  the  Code  Authority  as 
may  be  necessary  in  order  to  enable  the  Code  Authority  to  collect 
and  furnish  to  the  Government  the  information  required  under  the 
terms  of  the  National  Industrial  Recovery  Act.  In  addition  to  in- 
formation required  to  be  submitted  to  the  Code  Authority,  there 
shall  be  furnished  to  Government  agencies  such  statistical  informa- 
tion as  the  Administrator  may  deem  necessary  for  the  purpose  re- 
cited in  Section  3  (a)  of  the  National  Industrial  Recovery  Act.  The 
manufacturers  shall  keep  their  accounts  in  such  form  as  may  be 
necessary  to  enable  them  to  furnish  information  desired  by  the 
Government. 

Sec.  4.  Members  of  the  Industry  having  a  common  interest  and 
common  problems  may  group  themselves  for  administrative  pur- 
poses in  various  subdivisions  or  product  classifications,  subject  to 
the  approval  of  the  Code  Authority.  The  majority  of  members  in 
each  subdivision  or  product  classification  may  appoint  its  agency, 
with  supervisory  and/or  administrative  powers,  subject  to  the  Code 
Authority.  In  the  event  that  no  such  agency  is  so  appointed,  then 
the  Code  Authority  may  appoint  such  agency.  If  formal  complaint 
is  made  to  the  Code  Authority  that  the  provisions  of  this  Code  have 
been  violated  by  any  member  or  members  of  the  Industry,  the  agency 
for  the  subdivision  or  product  classification  to  which  the  complaint 
refers,  shall  institute  such  inquiry  as  may  be  necessary  to  develop 
the  facts  and  shall  report  the  results  of  such  inquiry  to  the  Code 
Authoritv. 

Sec.  5.  The  Code  Authority  may  act  by  or  through  any  committee 
or  representative  or  representatives  to  whicli  or  to  whom  it  may  from 
time  to  time  delegate  authority.  Except  as  otherwise  provided  in  the 
National  Industrial  Recovery  Act,  all  statistics,  data,  and  informa- 
tion filed  or  obtained  in  accordance  with  any  of  the  provisions  of 
this  Code  shall  be  confidential.  The  statistics,  data,  and  information 
of  one  manufacturer  engaged  in  the  Industry  shall  not  be  revealed 
to  any  other  manufacturer  engaged  in  the  Industry  except  that  for 
the  purpose  of  enforcing  or  administering  the  provisions  of  this 
Code,  the  Code  Authority  by  its  duly  authorized  representatives 
(who  shall  not  be  connected  with  or  in  the  employ  of  any  manu- 
facturer engaged  in  the  Industry  affected  by  tliis  Code)  shall  have 
access  to  any  and  all  statistics,  data,  and  information  that  may  be 

^  Seo  par.  2  of  order  approving  this  Code. 


571 

furnished  or  obtained  in  accordance  with  any  of  the  provisions  of 
this  Code. 

Sec.  G.  The  Jurisdiction  of  this  Code  and  of  the  Code  Authority 
over  any  manufacturer  engaged  in  the  Industry  is  expreasly  limited 
to  that  portion  of  the  business  and  emplo3^ment  of  such  manufacturer 
which  is  within  the  Industry, 

Sec.  T.  Any  alleged  violation  of  the  provisions  of  this  Code  shall 
be  investigated  by  an  unbiased  authorized  representative  or  repre- 
sentatives of  the  Code  Authority  as  provided  for  in  Article  V,  Section 
5,  and  members  of  the  Industry  sliall  facilitate  such  investigations 
Ijy  opening  their  pertinent  correspondence,  books  and  accounts  for 
examination  and  by  furnishing  relevant  information.  Upon  the 
disclosure  of  any  violation  of  any  provision  of  this  Code,  the  Code 
Authority  shall  present  evidence  thereof  to  the  Administrator. 

Sec.  8.  Recognizing  that  violation  of  any  provision  of  this  Code 
will  disrupt  the  normal  course  of  fair  competition  in  the  Industry 
and  cause  serious  damage  and  that  it  will  be  impossible  fairly  to 
assess  the  amount  of  such  damage,  each  member  of  the  association 
who  shall  violate  any  such  provision  shall  pay  to  the  association,  in 
trust  as  and  for  liquidated  damages,  a  sum  equal  to  25%  of  the 
invoice  value  of  any  alloy  casting  sold  in  violation  of  any  such  pro- 
vision, such  funds  to  be  applied  to  the  administration  of  this  Code. 
The  Code  Authority  by  the  affirmative  vote  of  two-thirds  may  waive 
any  liability  for  such  liquidated  damages  as  may  be  imposed  by  or 
l)ursuant  to  this  provision  of  this  Code,  if  in  its  discretion  it  so 
decides  that  such  violation  Avas  innocently  made  and  that  the  collec- 
tion of  such  damages  is  not  necessary  in  order  to  eifectuate  tlie  policy 
of  Title  I  of  the  National  Industrial  Recovery  Act. 

Sec.  9.  The  Code  Authority  shall  make  a  careful  study  of  the 
question  of  limitation  of  alloy  melting  capacity  and  shall  submit 
to  the  Administrator  for  his  approval  such  plan  or  plans  as  are 
deemed  necessary  and  which  will  further  effectuate  the  policies  of  the 
National  Industrial  Recovery  Act. 

Sec.  10.  If  the  Administrator  shall  determine  that  any  action  of  a 
Code  Authority  or  any  agency  thereof  is  unfair  or  unjust  or  contrary 
to  the  ])ublic  interest,  the  Administrator  may  require  that  sucli  action 
be  suspended  for  a  period  of  not  to  exceed  thirty  clays  to  afford  an 
opportunity  for  investigation  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. 

Article  VI — Trade  Practice  Rules 

1.  For  all  purposes  of  the  Code  the  acts  described  in  this  article 
shall  constitute  mifair  practices.  Any  member  of  the  industry  who 
shall  directly,  or  indirectly  through  any  officer,  employee,  agent  or 
representative  use,  emplo}-,  or  jjermit  to  be  employed,  any  of  such 
unfair  practices  shall  be  guilty  of  a  violation  of  the  Code. 

(a)  The  use  of  other  than  actual  shipping  weights  as  a  basis  for 
billing  except,  for  machined  products  specifically  classified  by  the 
Code  Authority. 

(b)  Assuming  transportation  expense  on  pattern  equipment  either 
to  or  from  manufacturer's  plant. 


572 

(c)  Assumption  of  responsibility  for  machine  work,  labor  charges, 
or  other  expenses  incurred  by  the  customer  on  castings  which  are 
rejected  as  defective. 

(d)  Assumption  of  any  cost  for  inspection  of  castings  by  outside 
individuals  or  agents  when  done  at  the  request  of  the  purchaser. 

(e)  The  selling  or  advertising  for  sale  and/or  marking  of  prod- 
ucts with  the  intent  to  mislead  or  deceive  a  purchaser  or  prospective 
purchaser  regarding  their  quality,  substance,  or  service  features. 

(f)  The  fictitious  invoicing  of  products. 

(g)  Permitting  a  customer  to  make  any  deduction  from  the 
invoice  not  covered  by  the  terms  of  sale. 

(h)  The  shipping  or  other  delivering  of  free  goods  of  any  kind 
to  am'^  customer  for  resale  or  consumer's  commercial  use. 

(i)  Give,  permit  to  be  given,  or  directly  offer  to  give,  anything  of 
value  for  the  purpose  of  influencing  or  rewarding  the  action  of  any 
employee,  agent,  or  representative  of  another  in  relation  to  the  busi- 
ness of  the  employer  of  such  employee,  the  principal  of  such  agent 
or  the  represented  party,  without  the  knowledge  of  such  employer, 
principal,  or  party.  Commercial  bribery  provisions  shall  not  be 
construed  to  prohibit  free  and  general  distribution  of  articles  com- 
monly used  for  advertising  except  so  far  as  such  articles  are  actually 
used  for  connnercial  bribeiy  as  hereinabove  defined. 

(j)  To  purchase  from  customers  any  commodity  at  a  price  in 
excess  of  the  published  prevailing  open-market  price  for  the  com- 
modity in  question:  to  purchase  scrap  materials  of  another  manu- 
facturer from  customei-s  at  a  price  in  excess  of  the  published 
prevailing  market  price  for  such  materials;  to  pay  more  for  his  own 
scrap  than  2c  per  pound  premium  over  prevailing  market  prices. 
This  provision  shall  not  be  construed  as  abrogating  any  existing 
contract  whereby  a  manufacturer  is  obligated  to  take  back  scrap  from 
castings  of  his  own  manufacture  at  a  fixed  price. 

(k)  The  giving  of  terms  more  favorable  than  net  thirty  days  from 
date  of  shipment.  A  discount  of  I/2  of  1%  may  be  allowed,  provid- 
ing payment  is  made  within  ten  days  from  date  of  shipment. 

(1)  Absorb  all  or  any  part  of  the  machining  cost  of  castings 
sold  as  machined  castings. 

(m)  The  selling  of  products  other  than  alloy  castings  at  prices 
below  the  prevailing  market  to  influence  a  sale  of  alloy  castings. 

Article  VII — Open  Price  PRO%asiox 

Section-  1.  Each  member  of  the  Industr}-  manufacturing  prod- 
ucts falling  within  any  subdivision  or  product  classification,  as  de- 
scribed in  Article  V,  Section  4,  shall,  within  ten  (10)  days  after 
notice  of  the  establishment  of  anj'^  subdivision  or  product  classifica- 
tion, file  with  the  agency  for  such  subdivision  or  product  classifira- 
tion  a  price  list  prepared  by  such  member  of  the  Industr3%  showing 
his  current  prices  and  the  agency  shall  immediately  .send  copies 
thereof  to  all  members  of  the  Industry  engaged  in  the  manufacture 
of  such  specified  product.  Revised  price  lists  may  be  filed  from  time 
to  time  thereafter  with  the  agency  by  any  such  member  of  the  In- 
dustry to  become  effective  upon  the  date  specified  therein  but  such 
revised  price  list  shall  be  filed  with  the  agency  not  less  than  eight 


573 

(8)  nor  more  than  ten  (10)  days  in  advance  of  the  effective  date. 
Copies  of  siicli  revised  price  lists  with  notice  of  the  effective  date 
specified  sliali  be  immediately  sent  to  all  members  of  the  Industry 
manufacturing  such  product  who  thereupon  may  file,  if  they  so  de- 
sire, revisions  of  tlieir  i)rice  lists  specifying  the  effective  date  wliich 
may  be  on  or  after  the  date  when  the  revised  price  list  first  filed 
shall  go  into  effect.  No  member  of  the  Industry  shall  sell  directly 
or  inclirectiy  by  any  means  whatsoever  any  product  of  the  Industry 
at  a  price  less  than  the  price  shown  for  such  product  in  the  list 
fiJed  bv  such  member.^ 

Article  VIII — Amendments  axd  Supplements 

Section  1.  This  Code,  except  as  to  provisions  required  b}'  the  Act, 
may  be  modified  and  supplemented  on  the  basis  of  experience  or 
changes  in  circumstances,  such  modifications  and  supplements  to  be 
based  upon  application  to  the  Administrator  and  such  notice  and 
hearing  as  he  shall  specif }-,  in  compliance  with  Section  3  (a)  of  the 
Act  and  to  become  effective  on  approval  of  the  Administrator. 

Sec.  2.  The  President  of  the  United  States  may  from  time  to  time 
cancel  or  modify  any  order,  approval,  license,  rule,  or  regulation 
issued  under  Title  I  of  the  National  Industrial  Recovery  Act. 

Article  IX 

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 

This  Code  shall  be  effective  at  12  :  01  A.M.  on  the  fifth  calendar  day 
after  its  approval  by  the  President  of  the  United  States,  and  shall 
continue  in  effect  until  June  IG,  1935,  or  the  earliest  date  prior 
thereto  on  which  the  President  shall,  by  proclamation,  or  the  Con- 
gress shall,  by  Joint  Eesolution,  declare  that  the  emergency  recog- 
nized by  Section  1  of  the  National  Industrial  Recovery  Act  has 
ended. 

Approved  Code  No.  237. 
Registry  No.  1201-1-02. 


See  par.  2  of  order  approving  this  Cede. 

o 


Approved  Code  No.  238 
CODE  OF  FAIR  COMPETITION 

FOR  THE 

FAN  AND  BLOWER  INDUSTRY 
As  Approved  on  January  30,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

FAN  AND  BLOWER  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  Fan  and  Blower  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  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 : 
W.  A.  Harriman, 

Division  Administrator. 
Washington,  D.C, 

January  SO,  193 1^. 

86709° 313-153 34  (575) 


The  President, 

The  White  House. 

Sir  :  This  is  a  report  on  the  Code  of  Fair  Competition  for  the  Fan 
and  Blower  Industry  as  revised  after  a  public  hearing,  conducted  in 
Washington,  D.C.,  on  December  28,  1933,  in  accordance  with  the 
provisions  of  the  National  Industrial  Recovery  Act. 

PROVISIONS    AS    TO    WAGES    AND    HOURS 

All,  except  office  employees,  shall  be  paid  a  minimum  rate  of 
forty  cents  per  hour.  Apprentices  shall  not  exceed  in  number  five 
percent  of  the  total  number  of  wage  earners.  Office  employees 
shall  be  paid  a  minimum  wage  of  fifteen  dollars  per  week.  Office 
boys  and  girls  shall  be  paid  not  less  than  eighty  percent  of  this 
rate  and  shall  not  exceed  in  number  five  percent  oi  an  employer's 
total  number  of  office  employees. 

Handicaj^ped  workers  may  be  employed  at  wages  below  the  min- 
imum. Female  employees  performing  substantially  the  same  work 
as  male  employees  shall  receive  equal  pay.  Adjustment  of  wage 
rates  above  the  minimum  will  be  made  within  thirty  days  after  the 
approval  of  this  Code. 

Forty  hours  shall  be  the  maximum  immber  of  working  hours 
for  any  Aveek  and  eight  hours  for  any  day  except  during  any  six 
weeks  in  a  six  months'  period  forty-eight  hours  in  one  week  shall 
be  permissible.  Executives,  their  staffs,  and  supervisors,  who  reg- 
ularly receive  thirty-five  dollars  or  more  per  week,  and  outside 
salesmen  are  excepted  from  this  provision.  Employees  engaged 
solely  at  maintenance  and  repair  work,  truckmen,  firemen,  and 
engineers  may  work  nine  hours  a  day  or  fortj'^-four  hours  a  week, 
except  during  an}^  six  weeks  in  a  six  months'  period  forty-eight  hours 
in  one  week  is  permissible.  Watchmen  shall  not  be  employed  in 
excess  of  fifty-six  hours  in  any  one  week.  Office  employees,  except 
those  receiving  thirty-five  dollars  per  week  or  more,  shall  not  be 
employed  in  excess  of  an  average  of  forty  hours  per  week  over  each 
period  of  five  weeks,  nor  more  than  forty-eight  hours  in  any  one 
week. 

All  employees,  except  office  employees,  shall  be  paid  at  the  rate 
of  time  and  one  half  for  time  worked  in  excess  of  forty  hours  per 
week. 

ECONOMIC  EFFECTS  OF  THE  CODE 

Annual  sales  of  the  products  of  this  industry  declined  about 
sixty-four  percent  from  1929  to  1933  and  investecl  capital  declined 
thirty-one  percent  over  the  same  period.  Employment  declined 
forty-six  percent  from  1929  to  1933.  Thirty-nine  hundred  wage 
earners  were  employed  by  the  industry  in  1929  according  to  the 
Hesearch  and  Planning  Division's  report. 

(576) 


577 

The  maximum  hours  established  by  this  Code  will  increase  em- 
ployment approximately  twelve  percent  if  the  average  volume  of 
production  for  the  years  1930  and  1931  is  continued.  The  Code 
provision  that  wages  above  the  minimum  shall  be  equitably  adjusted 
is  expected  to  cause  material  increase  in  purchasing  jwwer.  Trade 
practice  provisions  of  the  Ccxle  are  expected  to  remedy  many  of  the 
evils  that  have  been  prevalent  in  the  past.  This  Industry  depends 
chiefly  on  new  building. 

nXDINGS 

The  Deputy  Administrator  in  his  final  re))ort  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  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  promotmg  the  organization  of  in- 
dustr}^  for  the  purpose  of  cooperative  action  among  the  trade  groiqis, 
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 
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  I'c- 
ducing  and  relieving  unemployment,  by  improving  standards  of 
labor,  and  by  otherwise  rehabilitating  industry. 

(b)  Said  Industry'  normally  employs  not  more  than  ."iO.OOO  eni- 
ploj'ees:  and  is  not  classified  by  me  as  a  major  industry. 

(c)  The  Code  as  approved  complies  in  all  respects  with  tlie  per- 
tinent provisions  of  said  Title  of  said  Act,  including  without  limi- 
tation Subsection  (a)  of  Section  3,  Suljsection  (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,  therefore,  I  have  approved  this  Code. 
Respectfully, 

Hugh  S.  Johnson, 

Administrator, 
January  30,  1934. 


CODE  OF  FAIR  COMPETITION 

FOR   THE 

FAN  AND  BLOWER  INDUSTRY 

Akticle  I — Purposes 

1.  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  Fan  and  Blower  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  "  Fan  and  Blower  Industry  "  as  used  herein  is  defined 
to  mean  the  manufacture  and  the  sale  by  the  manufacturers  of 
fans,  blowers,  and  air  washers  with  their  accessory  equipment  as 
used  in  the  heating  and  ventilating  business  and  as  applied  to 
drying,  mechanical  draft  or  air  conditioning  for  both  industrial 
and  human  comfort  purposes.  Electric  ventilating  fans  other  than 
desk,  wall,  or  ceiling  fans  (commonly  termed  "  buzz  fans  ")  shall 
be  classified  as  coming  within  the  scope  of  this  definition. 

2.  The  term  "  President  "  as  used  herein  means  the  President  of 
the  United  States  of  America. 

3.  The  term  "Administrator  "  means  the  Administrator  of  Title 
I  of  the  National  Industrial  Recovery  Act. 

4.  The  term  "Association  "  as  used  herein  means  the  National 
Association  of  Fan  Manufacturers,  a  trade  association. 

5.  The  term  "Act"  as  used  herein  means  the  National  Industrial 
Recovery  Act. 

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

7.  The  term  "  Employer  "  as  used  herein  itncludes  anj^one  by  whom 
any  such  employee  is  compensated  or  employed. 

8.  Tlie  term  "  Member  of  the  Industry  "  or  "  Member  "  includes, 
but,  W'ithout  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. 

Article  III — Hours 

Section  1.  No  employee,  excluding  accounting,  clerical,  and  office 
employees,  shall  be  employed  in  excess  of  forty  (40)  hours  in  one 

(578) 


579 

week,  or  eight  (8)  hours  in  any  twentj'-foiir  (24)  lioiir  period,  except 
that  during  any  six  (G)  weeks  in  any  six  (G)  )uonths'  period  em- 
ployees may  be  employed  not  more  than  forty-eight  (-48)  hours  per 
week,  providing  one  and  one  half  times  the  normal  rate  of  pay  shall 
be  paid  for  hours  Avorked  in  excess  of  eight  (8)  hours  per  day  and 
forty  (40)  hours  per  week.  The  foregoing  limitations  shall  not 
apply  to — 

(a)  Those  employed  in  executive  and  managerial  capacity,  and 
service  engineers  when  and  as  long  as  their  expenses  are  paid  by 
their  employer,  who  regularly  receive  thirty-live  ($35.00)  dollars 
or  more  per  week. 

(b)  Outside  salesmen. 

(c)  Employees  engaged  solely  at  maintenance  and  repair  work, 
truckmen,  firemen,  and  engineers,  who  may  be  permitted  to  work  not 
more  than  nine  (9)  hours  in  any  one  day,  or  forty-four  (44)  hours 
in  any  one  week.  These  employees  may  also  be  permitted  to  work 
forty-eight  (48)  hours  per  week  during  any  six  (6)  weeks  in  any 
six  (G)  months  period.  One  and  one  half  times  the  normal  rate  of 
paj^  shall  be  paid  for  hours  worked  in  excess  of  eight  (8)  hours  per 
day  and  forty  (40)  hours  per  week. 

(d)  Watchmen,  wdio  may  be  employed  not  more  than  fifty-six 
(56)  hours  in  any  one  (1)  week,  except  watchmen  in  closed  plants 
to  whom  this  limitation  shall  not  apply. 

(e)  Cases  of  emergency  such  as  the  production  of  equipment  or 
repairs  for  breakdown  service,  or  where  the  restriction  of  hours  of 
skilled  workers  would  unavoidably  reduce  production  or  limit  the 
work  available  to  other  workers. 

Sec.  2.  No  accounting,  clerical,  or  office  employee  shall  be  em- 
ployed in  excess  of  an  average  of  forty  (40)  hours  a  week  over  a 
calendar  five  (5)  weeks  period,  nor  more  than  forty-eight  (48) 
hours  in  any  one  week. 

Sec.  3.  No  employer  shall  knowingly  permit  any  employee  to 
work  for  any  time  which,  when  totaled  with  that  already  performed 
with  another  employer  or  employers  exceeds  the  maximum  permitted 
herein. 

Sec.  4.  No  employee  shall  be  permitted  to  work  more  than  six  (6) 
days  in  any  seven  (7)  day  period. 

Article  IV — Wages 

Section  1.  No  employee  shall  be  paid  at  less  than  the  rate  of 
forty  (40)  cents  per  hour,  except  that : 

(a)  Accounting,  clerical,  and  office  employees  may  be  paid  at  not 
less  than  fifteen  ($15.00)  dollars  per  week. 

(b)  Office  boys  and  office  girls  may  be  paid  at  not  less  than  eighty 
(80)  percent  of  the  above  provided  minimum  wage  for  accounting, 
clerical,  and  office  employees,  provided  that  the  total  number  of  such 
office  boys  and  girls  receiving  less  than  such  minimum  wage  shall 
not  exceed,  in  any  calendar  month  more  than  five  (5)  percent  of  the 
total  number  of  office  employees  of  the  employer,  except  that  any 
employer  may  employ  at  least  two  (2)  such  persons  as  above 
provided. 


580 

(c)  Nothing  in  this  Article  IV  shall  apply  to  or  affect  a  bona  fide 
apprentice  employed  under  a  system  or  course  of  trainino-  which, 
when  completed,  will  make  the  apprentice  a  skilled  mechanic.  At 
no  time  shall  new  apprentices  be  admitted  to  apprenticeship  b}^  any 
employer  when  such  action  will  bring  their  total  number  to  more 
than  five  (5)  percent  of  the  total  number  of  factory  employees  of 
such  employer. 

Sec.  2.  This  Article  establishes  a  minimum  rate  of  pay  which 
shall  apply,  irrespecti^'e  of  whether  an  employee  is  actuall}^  com- 
pensated on  a  time  rate,  piece-work,  or  other  basis. 

Sec.  3.  The  Code  Authority  may  present  for  approval  of  the 
Administrator,  after  notice  and  hearing,  recommendations  as  to 
upward  adjustments  in  minimum  wages  for  specific  localities. 

Sec.  4.  Ecputable  adjustment  of  compensation  of  employees  re- 
ceiving more  than  the  minimum  rates  of  pay  herein  prescribed  shall 
be  made  by  all  employers  wdio  have  not  heretofore  made  such  ad- 
justments, and  all  employers  shall  within  sixty  (60)  days  after  ap- 
proval of  this  Code,  report  in  full  to  the  Code  Authority  concerning 
Buch  adjustments  whether  made  prior  to  or  subsequent  to  such  ap- 
I^roval,  provided,  however,  that  in  no  event  shall  hourly  rates  of 
pay  be  reduced. 

Sec.  5.  Female  employees  performing  substantially  the  same  work 
as  male  employees  shall  receive  the  same  rate  of  pay  as  male  em- 
ployees. 

Sec.  6.  A  person  whose  earning  capacit}^  is  limited  because  of 
age  or  physical  or  other  handicap  may  be  employed  on  light  work 
at  a  wa^e  below  the  minimum  established  by  this  Code  if  the  em- 
ployer ()btains  from  the  State  authority  designated  by  the  United 
States  Department  of  Labor  a  certificate  authorizing  his  employ- 
ment at  such  wages  and  for  such  hours  as  shall  be  stated  in  the 
certificate.  Each  employer  shall  maintain  on  file  with  the  Code 
Authority  a  list  of  all  such  persons  emploj^ed  b}^  him. 

Sec.  7.  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  State  laws.  Wages  shall  be  paid  at 
least  at  the  end  of  every  two-week  period,  and  salaries  at  least  at 
the  end  of  every  month. 

Sec.  8.  The  employer  or  his  agent  shall  accept  no  rebates  directly 
or  indirectly  on  such  wages  nor  give  anything  of  value  or  extend 
favors  to  any  person  for  the  purpose  of  influencing  rates  of  wages 
or  the  Avorking  conditions  of  his  emploj'ees. 

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  emijloyed  at  operations  or  occupations  which  are  hazard- 
ous in  nature  or  dangerous  to  health.  The  Code  Authority  shall  sub- 
mit to  the  Administrator  before  March  1,  1934,  a  list  of  such  opera- 
tions 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  any  State  em- 


581 

powered  to  issue  employment  or  a^e  certificates  or  permits  slioAA'ing 
that  the  emph)yee  is  of  the  required  nge. 

Sec.  2.  In  compliance  with  Section  7  (a)  of  the  Act  it  is  provided 
that  : 

(a)  Employees  shall  have  the  ri<rht  to  organize  and  bai'gain  col- 
lectively through  representatives  of  their  own  choosing,  and  shall 
he  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)  Xo  employee  and  no  one  seeking  employment  shall  be  required 
as  a  condition  of  employment  to  join  any  company  union  or  refrain 
from  joining,  organizing,  or  assisting  a  labor  organization  of  his 
own  choosing. 

(c)  Employers  shall  comply  with  the  maximum  hours  of  labor, 
mininuim  rates  of  pay,  and  other  conditions  of  employment  ai)proved 
or  prescribed  bj'^  the  President. 

Sec.  3.  No  employer  shall  reclassify  employees  or  duties  of  occu- 
l)atJons  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.  Every  employer  shall  make  reasonable  provisions  for  the 
safety  and  health  of  his  employees  at  the  place  and  during  the  hours 
of  their  employment. 

Sec.  5.  No  pro-sisions  in  this  Code  shall  supersede  any  State  or 
Federal  law  which  imposes  more  stringent  requirements  on  employ- 
ers as  to  age  of  employees,  wages,  hours  of  work,  or  as  to  safety, 
sanitary  or  general  working  conditions,  or  insurance,  or  fire  protec- 
tion, than  are  imposed  by  this  Code. 

Sec.  6.  All  employers  shall  post  complete  copies  of  the  labor  pro- 
visions of  this  Code  in  conspicuous  places  accessible  to  employees. 

Article  VI — Administration 

To  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.  (a)  During  the  sixty  (60)  day  period  following  the 
effective  date,  the  Code  Committee  of  the  National  Association  of 
Fan  Manufacturers  shall  constitute  a  temporary  Code  Authorit3^  to 
serve  until  the  permanent  Code  Authority  hereinafter  referred  to 
shall  have  been  elected. 

(b)  During  such  period  the  Association  shall  set  up  a  permanent 
Code  Authority'  consisting  of  three  (3)  or  more  members  of  the  Indus- 
try as  determined  by  the  Code  Authority,  elected  by  the  members  of 
the  Industry  bj^  a  fair  method  of  selection,  approved  by  the  Ad- 
ministrator. To  the  temporary  and  to  the  permanent  Code  Authority 
so  provided  for,  the  Administrator  in  his  discretion  may  ai)point 
not  more  than  three  additional  members  (without  vote)  to  rej^resent 
the  Administrator.  Such  additional  members  shall  serve  witliout 
expense  to  the  Industry. 

(c)  The  Code  Authority  (including  the  temporary  Code  Authority 
herein  above  referred  to)  shall  have  the  following  powers  and  duties, 
to  the  extent  permitted  by  the  Act : 


582 

1.  To  obtain  from  the  members  of  the  Industry  such  statistical 
data  and  information  as  may  be  required  under  the  Act  (in  such 
form  and  manner  as  not  to  disclose  the  individual  figures  and  data 
of  the  respective  members  of  the  Industry),  whether  requested  by 
the  Administrator  or  as  may  be  otherwise  necessary  to  enforce  and 
effectuate  the  provisions  of  this  Code  and  the  policy  of  the  Act. 

2.  To  make  available  to  the  Administrator  such  reports,  data, 
and  information  as  nuiy  be  required  by  the  Administrator  and 
which  will  assist  in  keeping  the  Administrator  or  any  representative 
designated  by  him  fully  advised  concerning  such  matters  and  confer 
with  the  Administrator  or  his  representative  from  time  to  time  to 
consider  and  study  any  recommendations  presented  by  such  persons 
on  behalf  of  the  National  Kecovery  Administration  or  any  member 
of  the  Industry  regarding  the  operation,  observance,  and  adminis- 
tration of  this  Code. 

8.  To  make  recommendations  to  the  Administrator  for  the  coordi- 
nation of  the  administration  of  this  Code  with  such  other  codes,  if 
any,  as  may  be  related  to  the  industry. 

4.  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. 

5.  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. 

6.  To  delegate  any  of  its  duties  to  such  agencies  as  it  may  ap- 
point which  would  not  involve  the  disclosure  of  the  individual  data 
or  information  of  any  member  of  the  Industry,  except  as  otherwise 
herein  permitted  or  required  to  be  disclosed,  provided,  that  such 
agencies  shall  be  under  the  supervision  of  the  Code  Authority  and 
responsible  to  it. 

Sec.  2.  The  Association  is  hereby  constituted  an  agency  of  the 
Code  Authority  to  receive  reports  as  hereinabove  provided.  The 
Association  shall  provide  for  the  receiving  and  holding  of  such  re- 
ports in  confidence.  Such  reports  shall  be  in  such  form,  and  shall 
be  furnished  at  such  intervals  as  shall  be  prescribed  by  the  Code 
Authority  and  shall  contain  such  information  relevant  to  the  pur- 
poses of  this  Code  as  shall  be  prescribed  by  the  Code  Authority  from 
time  to  time  including  information  with  respect  to  the  following 
subjects : 

(a)  Employment,  hours,  wages,  and  wage  rates. 

(b)  Production  and  billing. 

(c)  Financial  and  cost  data. 

(d)  Activity,  purchases,  and  sales. 

Sec.  3.  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, 
together  with  such  other  information  as  to  membership,  organiza- 
tion, and  activities  as  the  Administrator  may  dcei;?  nrc-^ssary  to 
effectuate  the  purposes  of  the  Act. 


583 

Sec.  4.  In  order  that  the  Code  Antlioiity  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  moditication  in  the  method  of  selection  of  the  Code 
Authority. 

Sec.  5.  In  addition  to  the  information  required  to  be  submitted 
to  the  Code  Authoritj^,  there  shall  be  furnished  to  goverjunent 
agencies  such  statistical  information  as  the  Administrator  may  deem 
necessar}'  for  the  purpose  recited  in  Section  3  (a)  of  the  Act. 

Article  VII — Rules  Covering  Industry 

Section  1.  There  shall  be  uniformity  in  bookkeeping  methods. 
Each  member  shall  subscribe  to,  adopt,  and  put  into  etfect  a  method 
of  cost  accounting  which  recognizes  and  includes  all  items  entering 
into  costs  as  prescribed  by  the  Statistical  Committee  of  the  Associa- 
tion and  approved  by  the  Code  Authority  and  bj^  the  xA.dministrator. 

Sec.  2,  Where  a  manufacturer  produces  other  lines  of  products 
not  falling  under  the  definition  of  the  "  Fan  and  Blower  Industry  ", 
each  such  business  shall  be  considered  a  separate  unit  for  the  pur- 
pose of  ascertaining  costs,  and  costs  not  specifically  attributable  to 
one  specific  business  shall  be  properly  and  fairly  allocated  to  the 
several  businesses  so  that  the  cost  of  the  products  of  the  Fan  and 
Blower  Industry  can  be  fairly  and  accurately  determined. 

Article  VIII — Trade  Practice  Rules 

Section  1.  Unfair  Competition. —  (a)  No  member  shall  sell  or 
exchange  any  product  of  his  manufacture  at  a  price  which  results  in 
his  receiving  less  than  his  total  cost  of  production,  determined  pur- 
suant to  the  provisions  of  Article  VII,  except  that  any  member  of 
the  industry  may  meet  the  price  competition  of  any  other  member 
who  is  not  violating  this  Code  on  products  of  equivalent  design, 
bize,  capacitv^,  character,  quality,  or  specifications. 

(b)  No  member  shall  entice  away  any  employee  of  any  other 
member  with  the  purpose  and  effect  of  unduly  hampering,  injuring, 
or  embarrassing  such  other  member  in  his  business. 

(c)  No  member  shall  withhold  from  or  insert  in  the  invoice,  facts 
which  make  the  invoice  a  false  record,  wholly  or  in  part,  of  the 
transaction  represented  on  the  face  thereof,  and  shall  not  make  pay- 
ment or  give  allowances  of  secret  rebates,  refunds,  credits,  unearned 
discounts,  whether  in  the  form  of  money  or  otherwise. 

(d)  No  member  shall  falsel}'  disparage  the  weight,  substance, 
strength,  grade,  quality,  or  efficiency  of  the  goods  of  competitors. 

(e)  No  member  shall  defame  competitors  with  the  purpose  and/or 
tendency  to  mislead  or  deceive  any  prospective  purchaser  or  pur- 
chasers by  falsely  imputing  to  them  dishonorable  conduct,  inability 
to  perform  contracts,  questionable  credit  standing,  or  by  other 
misrepresentation. 


584 

(f)  No  member  shall  in  selling  or  offering  to  sell  any  product, 
make  any  materially  inaccurate  or  false  representations  as  to  the 
quality,  quantity,  grade,  substance,  or  efficiency  of  such  product,  for 
the  purpose  or  with  the  effect  of  deceiving  purchasers  or  prospective 
purchasers. 

(g)  No  guarantee  against  defects  of  workmanship  and  material 
shall  be  given  on  standard  products  beyond  the  customary  one-year 
period. 

(h)  No  member  of  the  industry  shall  knowingly  offer  a  proposal 
after  a  contract  has  been  awarded  to  another  member,  provided  that 
the  aAvard  has  been  approved  by  all  parties  having  rights  therein  and 
the  contract  has  been  duly  and  regularly  accepted  by  such  other 
member. 

(i)  No  member  of  the  industry  shall  attempt  to  induce  the  breach 
of  any  contract  between  a  manufacturer  and  a  customer  or  his  source 
of  supply. 

(j)  No  member  of  the  industry  shall  give,  permit  to  be  given,  or 
directly  offer  to  give  anything  of  value  for  the  purpose  of  influenc- 
ing or  rewarding  the  action  of  an}^  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.  Commer- 
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. 

Sec.  2.  Nothing  in  these  rules  shall  be  interpreted  to  prevent  the 
sale  of  dropped  lines  or  obsolete  stock  at  such  prices  as  are  necessary 
to  move  such  merchandise;  provided,  however,  that  all  such  stocks 
are  first  reported  in  writing  to  the  Code  Authority,  or  its  authorized 
agent,  and  that  any  such  report  contains  an  accurate  inventory  of 
the  material  in  question  and  the  price  asked. 

Sec.  3.  Any  representations,  whether  by  advertising  or  otherwise, 
as  to  performance  of  equipment  shall  be  in  accordance  with  the  Test 
Codes  adopted  by  the  Association  and  the  American  Society  of  Heat- 
ing and  Ventilating  Engineers  where  applicable. 

Article  IX — General  Provisions 

Section  1.  By  presenting  this  Code,  the  applicants  for  its  approval 
shall  not  be  deemed  to  have  assented  to  any  modifications  thereof  and 
each  reserves  the  right  to  object  to  any  modification  thereof. 

Sec.  2.  (a)  Amendments  to  or  revisions  of  this  Code  may  be  pro- 
posed by  the  Code  Authority,  which  will  become  effective  as  part  of 
the  Code  upon  approval  by  the  Administrator  after  such  notice  and 
hearing  as  he  may  specify. 

(b)  This  Code  and  all  the  provisions  thereof  are  expressly  made 
subject  to  the  right  of  the  President  of  the  United  States,  in  accord- 
ance with  the  provision  of  Subsection  (b)  of  Section  10  of  the  Na- 
tional Industrial  Recovery  Act,  from  time  to  time  to  cancel  or  modify 
anj'  order,  approval,  license,  rule,  or  regulation  issued  under  Title  I 
of  said  Act,  and  specifically,  without  limitation,  to  the  right  of  the 
President  of  the  United  States  to  cancel  or  modify  his  approval  of 


585 

this  Code  or  any  conditions  imposed  by  him,  upon  his  approval 
thereof. 

(c)  Members  of  the  Industry  shall  be  entitled  to  participate  in 
and  share  the  benefits  of  the  Code  and  to  participate  in  the  election 
of  the  permanent  Code  Authority,  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  expense  of  administration  shall  be  determined  by  the  Code 
Authority,  subject  to  review  by  the  Administrator,  on  the  basis  of 
volume  of  business  and/or  such  other  factors  as  may  be  deemed 
equitable  to  be  taken  into  consideration. 

Sec.  3.  None  of  the  provisions  of  this  Code  shall  be  construed  or 
applied  in  such  a  way  as  to  promote  a  monopoly  or  monopolistic 
practices  or  to  eliminate  or  oppress  small  enterprises,  or  discrimi- 
nate against  them. 

Sec.  4.  If  the  Administrator  shall  determine  that  any  action  of 
the  Code  Authority  or  any  agency  thereof  is  unfair  or  unjust  or 
contrary  to  the  public  int-erest,  the  Administrator  may  require  that 
such  action  be  suspended  for  a  period  of  not  to  exceed  thirty  days 
to  afford  an  opportunity  for  investigation  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. 

Article  X — Effective  Date 

This  Code  shall  become  effective  on  the  second  Monday  after  its 
approval  by  the  President  of  the  United  States. 


Approved  Code  No.  238, 
Registry  No.  1304-03. 


O 


Approved  Code  No.  239 

CODE  OF  FAIR  COMPETITION 

FOR  THE 

PORCELAIN  BREAKFAST  FURNITURE 
ASSEMBLING  INDUSTRY 

As  Approved  on  January  30,  1934 


ORDER 

APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

PORCELAIN  BREAKFAST  FURNITURE 
ASSEMBLING  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  Porcelain  Breakfast  Furniture  Assembling 
Industry,  and  hearings  having  been  dul}'^  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  an- 
nexed report  and  do  find  that  said  Code  complies  in  all  respects  with 
the  pertinent  provisions  and  will  promote  the  polic}'^  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  provisions  of  article  T-B,  section  11.  insofar  as  they  prescribe  a 
waiting  period  between  the  filing  with  the  Code  Authority  and  tho 

36712° 313-151 34       (587) 


588 

effective  date  of  revised  price  lists  or  revised  terms  and  conditions 
of  sale  be  and  they  are  hereby  stayed  pending  my  further  Order 
either  within  a  period  of  sixty  da3"s  from  the  effective  date  of  this 
Code  or  after  the  completion  of  a  study  of  open  price  associations 
now  being  conducted  by  the  National  Recovery  Administration. 

Hugh  S.  Johnson, 
Administrator  for  Industrial  Recove)^. 

Approval  recommended : 
W.  A.  Harriman, 

D /vision  A djn.inis tra,t o r. 

Washington.  D.C, 

January  30,  193 Jf. 


The  President, 

The  White  House. 
Sir  :  This  is  a  report  on  the  Code  of  Fair  Competition  for  the 
Porcelain  Breakfast  Furniture  Assembling  Industry,  the  public 
hearing  having  been  held  in  Washington,  on  November  16,  1933,  in 
accordance  with  the  provisions  of  the  National  Industrial  Recovery 
Act. 

PROVISIONS   FOR    HOURS    AND   WAGES 

A  basic  forty  (40)  hour  week  is  established  by  this  Code.  A  tol- 
erance of  five  (5)  hours  a  week  averaged  over  each  eight  (8)  weeks' 
period  is  allowed  for  office  emploj'ees,  while  an  eight  (8)  hour  toler- 
ance is  permitted  for  factory  employees,  but  all  factory  overtime 
in  excess  of  eight  (8)  hours  a  day  must  be  paid  for  at  not  less  than 
one  and  one  half  (1M>)  times  the  regular  liourl}^  rate.  No  employee 
is  permitted  to  work  more  than  six  (6)  days  in  any  seven  (7)  day 
period. 

This  Code  establishes  a  minimum  rate  of  pa}^  of  forty  (40)  cents 
per  hour  in  the  North  and  thirty-six  (36)  cents  in  the  South,  but 
practically  the  entire  production  of  this  Industry  is  in  the  North. 
Apprentices  not  to  exceed  five  (5)  percent  of  the  total  number  of 
factory  workers  may  be  paid  eighty  (80)  percent  of  the  minimum 
rate  for  a  period  not  to  exceed  four  (4)  months. 

CHILD   LABOR 

No  person  under  sixteen  (16)  years  of  age  shall  be  employed  in 
the  Industry  nor  anyone  under  eighteen  (18)  years  of  age  at  occu- 
pations or  operations  hazardous  in  nature  or  detrimental  to  health. 

ECONOMIC    ETFECTS    OF    THE    CODE 

The  report  prepared  by  the  Division  of  Economic  Research  and 
Planning,  based  upon  data  obtained  from  the  Industry  by  question- 
naires, presents  the  following  facts : 

(a)  Since  1928  the  volume  of  sales  of  Porcelain  Breakfast  Furni- 
ture declined  approximately  sevent3'-two  (72)  percent. 

(b)  Factorv  employment  declined  nearly  thirty  (30)  percent  from 
June  1929,  to  June  1933. 

(c)  In  June  1929,  the  average  hours  worked  by  factory  employees 
were  53.7  per  week. 

(d)  Average  weekly  wages  of  factorv  wage  earners  declined  from 
$21.47  in  1929  to  $14.74  for  the  first  quarter  of  1933. 

(e)  Under  this  Code,  factory  employment  will  approach  the  1929 
level.  An  increase  of  approximately  twenty  (20)  percent  occurred 
from  June  to  October  1933,  under  the  President's  Reemployment 
Agreement,  and  a  further  increase  is  assured  when  all  the  members 
of  this  Industry  become  bound  by  this  Code. 

(5S9) 


590 

(f)  The  Code  provision  limiting  the  work- week  to  an  average  of 
forty  (40)  hours  will  effect  a  reduction  of  twenty  (20)  percent  or 
more  from  the  average  hours  worked  prior  to  the  President's  Re- 
employment Agreement. 

(g)  Average  Aveekly  wages  of  factory  employees  increased  ap- 
proximately fifteen  (15)  per  cent  in  the  third  quarter  of  1933  over 
the  first  quarter  under  the  President's  Reemployment  Agreement, 
and  a  further  increase  may  be  exj^ected  under  this  Code.  The  hourly 
wage  rates  paid  to  seventy-five  (To)  per  cent  of  the  workers  in  this 
Industry  will  be  increased  by  the  Code. 

(h)  The  total  payroll  of  this  Industry  was  increased  thirty-five 
(35)  percent  by  the  President's  Reemployment  Agi-eement. 

FINDINGS 

The  Assistant  Deputj^  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  RecoveiT  Act,  including 
removal  of  obsti'uctions  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  xVct.  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  eliuiinate  or  oppress 
small  enterprises  and  will  not  operate  to  discriminate  against  them. 

(f)  Those  engaged  in  other  steps  of  the  economic  process  have  not 
be^n  depriA'ed  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, 

Adm.inisti'ator. 
January  30.  1934. 


CODE  OF  FAIR  COMPETITION 

FOR   THE 

PORCELAIN  BREAKFAST  FURNITURE  ASSEMBLING 

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  by  the  Porcelain  Breakfast  Furniture  Assembling 
Industry,  and  upon  approval  by  the  President,  shall  be  the  standard 
of  fair  competition  for  the  Porcelain  Breakfast  Furniture  Assem- 
bling Industry  and  shall  be  binding  upon  every  member  thereof. 

Article  II — Definitions 

Section  1.  Porcelain  BreaJcfast  Furniture  Assembling  Industry. — • 
The  term  "  Porcelain  Breakfast  Furniture  Assembling  Industry  " 
as  defined  herein,  means  the  assembling  and  finishing  of  wholly 
manufactured  wood  parts  consisting  of  turned  legs,  stretchers,  table 
bases  and  their  parts,  porcelain  enamelled  tops,  and  chairs.  These 
parts  are  assembled,  finished,  and  processed  to  complete  a  porcelain 
breakfast  furniture  set. 

Sec.  2.  Employees. — The  term  '*  employee  "  as  used  herein  includes 
anyone,  except  a  member  of  the  industry,  engaged  in  the  Porcelain 
Breakfast  Furniture  Assembling  Industry  in  any  capacity  receiving 
compensation  for  his  services,  irrespective  of  the  nature  or  method  of 
payment  of  such  compensation. 

Sec.  3.  Employer. — The  term  "  employer  "  as  used  herein  includes 
anyone  by  whom  any  such  employee  is  compensated  or  employed. 

Sec.  4.  Members  of  the  Industry. — The  term  "  member  of  the 
Industry"  includes  anyone  engaged  in  the  Porcelain  Breakfast 
Furniture  Assembling  Industry  as  above  defined,  either  as  an  em- 
ployer or  on  his  own  behalf. 

Sec.  5.  President,  Act,  and  Administrator. — The  terms  ''Presi- 
dent ",  ''Act ".  and  "Administrator "  as  used  herein  shall  mean, 
respectively,  the  President  of  the  L^nited  States,  Title  I  of  the 
National  Industrial  Recovery  Act,  and  the  Administrator  for  Indus- 
trial Recovery. 

Sec.  6.  Pull-hacks. — The  term  "  pull-backs  "  as  used  herein  includes 
such  furniture  manufactured  b}^  members  as  is  returned  by  the 
consumer  to  the  retailer  after  being  in  use. 

Sec.  7.  Code  Authority. — The  term  "Code  Authority"  as  used 
herein  is  the  Agency  hereinafter  set  up  to  administer  the  provisions 
of  this  Code,  with  the  approval  of  the  Administrator. 

(591) 


592 

Sec.  8.  Association. — The  term  "Association '',  as  used  herein, 
means  National  Breakfast  Furniture  Manufacturers  Association, 
Inc..  a  trade  association. 

Sec.  9.  E.recufive  secretary. — The  term  ""  Executive  Secretary  ",  as 
used  herein,  means  the  Executive  Secretary  of  the  Association. 

Sec.  10.  Effective  date. — The  term  "  effective  date  "  as  used  herein 
means  the  second  Monday  after  this  Code  shall  have  been  approved 
b}^  the  President. 

Article  III — HorRS 

Section  1.  Xo  office  emplo^j^ees  shall  be  permitted  to  work  in  excess 
of  an  average  of  forty  (40)  hours  per  week  during  each  eight  (8) 
weeks'  period,  l)ut  not  more  than  forty-five  (45)  hours  in  any  one 
M'eek. 

Sec.  2.  No  other  worker  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. 

Sec.  3.  Employees  engaged  in  the  capacity  of  designers,  executives, 
or  supervisors  who  receive  $35.00  per  week  or  more,  and  outside  sales- 
men, are  excepted  from  the  provisions  of  Sections  1  and  2  of  this 
Article. 

Sec.  4.  A  tolerance  of  10%  in  the  hours  specified  above  shall  be 
permitted  for  firemen,  engineers,  emergency  maintenance  and  repair 
crews,  and  shipping  and  delivery  department  crews. 

Sec.  5.  The  hours  of  work  for  night  watchmen  and  night  firemen 
shall  not  exceed  a  total  of  eighty-five  (85)  houi-s  in  each  two  weeks 
period,  or  an  average  of  forty-two  and  one  half  (421/^)  hours  per 
week  in  each  two  weeks  period. 

Sec.  6.  Truck  drivers  operating  on  trips  normally  requiring  more 
than  eight  (8)  hours,  except  in  cases  of  unavoidable  delay  due  to 
breakdown  or  accident,  shall  be  subject  to  hours  of  labor  of  a  code 
hereafter  to  be  adopted  for  the  trucking  industry. 

Sec.  7.  The  maximum  hours  prescribed  in  Section  2  of  this  Article 
shall  not  apply  in  cases  of  seasonal  or  peak  operations,  provided, 
however,  that  no  employee  engaged  in  such  operations  shall  be  per- 
mitted to  work  in  excess  of  forty-eight  (48)  hours  in  any  one  week, 
nor  in  excess  of  forty  (40)  hours  per  week  averaged  over  an  eight 
(8)  consecutive  week  period. 

Sec.  8.  All  over-time  work  in  excess  of  eight  (8)  hours  per  day 
or  forty  (40)  hours  per  week  shall  be  paid  for  at  not  less  than  one 
and  one  half  (iy2)  times  the  regular  hourly  rate. 

Sec.  9.  No  employee  shall  be  permitted  to  work  more  than  six 
(0)  days  in  any  seven  (7)  day  period. 

Article  IV — Wages 

Section  1.  Xo  ciuployees  shall  be  paid  less  than  the  rate  of  400 
per  hour,  except  as  jirovided  in  Section  3  of  this  Article,  and  except 
in  the  States  of  Virginia,  North  Carolina.  South  Carolina,  Tennessee, 
Kentuck}',  Georgia,  Florida,  Alabama,  Mississippi,  Louisiana,  Ar- 
kansas, and  Texas,  where  no  employee  shall  be  paid  at  less  than 
the  rate  of  360  per  hour.     The  minimum  rates  herein  specified  are 


593 

guaranteed  whether  comi)ensation  is  based  on  time,  piecework,  or 
incentive  basis. 

Sec.  2.  Hourly  wage  rates  for  employees  receiving  more  than  the 
minimum  herein  perscribed  shall  be  adjusted  to  preserve  differentials 
existing  on  June  16,  1933,  and  in  no  case  shall  wages  be  reduced 
notwithstanding  any  reduction  in  hours. 

Within  thirty  (30)  days  after  this  Code  becomes  effective,  em- 
ployers shall  report  to  the  Code  Authority  action  taken  by  them 
since  July  1,  1933,  with  respect  to  adjustment  of  wages  above  the 
minimum. 

Sec.  3.  An  apprentice  ma}^  be  paid  not  less  than  80%  of  the  min- 
imum wages  s^Decified  in  Section  1  of  this  Article  for  a  period  not 
exceeding  a  total  of  four  (4)  months.  This  apprenticeship  period 
maj^  be  served  onlj^  once  during  his  lifetime.  The  number  of  such 
apprentices  shall  not  exceed  5%  of  the  total  number  of  factory 
workers,  provided  that  each  employer  may  employ  one  such  appren- 
tice. 

Article  V — General  Labor  Promsions 

Section  1.  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  before 
March  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  duly  issued  by  the  xiuthority  empowered  to  issue 
employment  certificates  showing  that  the  employee  is  of  the  required 
age. 

Sec.  2.  (a)  Emploj'ees  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  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,  ap- 
proved or  prescribed  bj^  the  President. 

(d)  Within  each  State  this  Code  shall  not  supersede  any  laws  of 
such  State  imposing  more  stringent  requirements  on  employers  reg- 
ulating age  of  emplo3'ees,  wages,  hours  of  work,  or  health,  fire,  or 
general  working  conditions  than  under  this  Code. 

Sec.  3.  Employers  shall  not  reclassify  employees  or  duties  of 
occupations  performed  by  employees  so  as  to  defeat  the  purpose  of 
the  Act  or  of  this  Code. 

Sec.  4.  Posting  Code. — Each  employci-  shall  post  in  conspicuous 
places  available  to  emj^loyees  full  copies  of  this  Code. 


594 
Article  VI — Labels 

Section  1.  All  furniture  manufactured  or  sold  by  "  members  of  the 
Industry  "  shall  bear  and  have  affixed  thereto  an  ''  NRA  Label " 
which  should  remain  attached  to  each  piece  of  breakfast  furniture 
when  it  leaves  the  factory.  Such  labels  shall  bear  the  registration 
number  specially  assigned  to  each  manufacturer  in  the  Industry 
b}^  the  Code  Authorit3^  The  privilege  of  using  such  labels  shall  be 
granted  and  such  labels  shall  be  issued  to  any  manufacturer  from 
time  to  time  engaged  in  the  Industry  upon  application  therefor  to 
the  Code  Authority  accompanied  by  a  statement  of  compliance  with 
the  standards  of  operation  prescribed  by  this  Code. 

"  jSIembers  of  the  Industry  "  shall  be  entitled  to  obtain  and  use 
such  labels  if  they  comply  with  the  provisions  of  this  Code. 

Article   VII — Organization,   Powers,   and  Duties   or   the   Code 

Authority 

A.  organization 

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

Sec.  2.  The  Code  Authority  shall  consist  of  ten  (10)  individuals 
or  such  other  number  as  may  be  approved  from  time  to  time  by  the 
Administrator,  including  seven  (7)  members  of  the  Board  of  Direc- 
tors, and  the  Executive  Secretary,  all  of  the  National  Breakfast 
Furniture  Manufacturers  Association,  Inc.,  and  two  (2)  otlier  break- 
fast furniture  assemblers  who  are  nonmembers  of  the  National 
Breakfast  Furniture  Manufacturers  Association,  Inc.,  all  to  be  se- 
lected by  a  fair  method  of  ejection  subject  to  the  approval  of  the 
Administrator.  The  Government  shall  be  represented  on  the  Code 
Authority  by  not  more  than  three  (3)  members  without  vote  to  be 
appointed  by  the  Administrator,  for  terms  of  from  six  months  to 
one  year  arranged  so  that  the  terms  do  not  expire  at  the  same  time. 

Sec.  3.  In  order  that  the  Code  Authoritv  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. 

Sec.  4.  Each  trade  or  industrial  association  participating  in  the 
selection  or  activities  of  the  Code  Authority  shall: 

(1)  impose  no  inequitable  restrictions  on  membership,  and 

(2)  submit  to  the  Administrator  true  copies  of  its  articles  of  asso- 
ciation, bylaws,  regulations,  and  any  amendments  Avhen  made  thereto, 
together  with  such  other  information  as  to  membership,  organiza- 
tion, and  activities  as  the  Administrator  may  deem  necessary  to 
effectuate  the  purposes  of  the  Act. 

Sec.  5.  IMembers  of  the  Industiy  shall  be  entitled  to  participate 
in  the  benefits  of  the  activities  of  the  Code  Authority  and  to  partici- 


595 

pate  in  the  selection  of  the  mcmljers  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  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  nuiy  be 
deemed  equitable  to  be  taken  into  consideration. 

Sec.  6.  There  shall  be  established  bv  the  Administrator,  a 
National  Industrial  Relations  Board  for  the  Industry,  consisting  of 
an  equal  number  of  representatives  of  employers  and  employees  to 
adjust  all  matters  in  the  Code  relating  to  labor.  Where  a  majority 
agreement  cannot  be  reached,  the  Board  shall  select  an  impartial 
chairman  to  render  a  decision.  The  creation  and  functioning  of 
these  Boards,  including  the  selection  of  representatives  of  employees 
shall  be  in  accordance  wnth  Section  7  of  the  Act.  If  no  truly  repre- 
sentative labor  organization  exists,  the  employee  members  of  such 
Board  shall  be  chosen  b}^  the  Labor  Advisory  Board  of  the  National 
Industrial  Recovery  Administration.  The  employer  representatives 
shall  be  chosen  by  the  Code  Authority.  The  Industrial  Relations 
Board  may  establish  such  subsidiary  agencies  constituted  in  like 
manner  as  it  finds  necessary. 

B.    POWERS  AND  DUTIES  OF  THE  CODE  AUTHORITY 

Section  1.  The  Code  Authority  shall  have  the  following  duties 
and  powers  to  the  extent  permitted  by  the  Act.  If  the  Administra- 
tor shall  determine  that  any  action  of  the  Code  Authority  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  days  to  afford  an  opportunity  for 
investigation  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. 

Sec.  2.  To  establish  appropriate  machinery  for  the  issuance  of 
labels  in  accordance  with  Article  VI  of  this  Code,  with  the  approval 
of  the  Administrator. 

Sec.  3.  To  prescribe  and  approve  a  standard  system  of  cost  account- 
ing, which,  Avhen  approved  by  the  Administrator,  shall  become  the 
uniform  system  of  cost  accounting  for  the  Industry,  and  all  mem- 
bers of  the  Industry  shall  thereafter  use  a  system  of  cost  accounting 
which  conforms  to  the  principles  of  and  is  at  least  as  detailed  and 
complete  as  such  uniform  system.  The  Code  Authority,  however, 
may  permit  such  exceptions  or  variations  as  it  deems  necessary  to 
meet  the  requirements  of  a  particular  situation. 

Sec.  4.  To  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  increasing  ratio  to 
domestic  production  on  such  terms  or  under  such  conditions  as  to 
render  ineffective  or  seriously  to  endanger  the  maintenance  of  this 
Code  and  as  an  agency  for  making  complaint  to  the  President  on 
behalf  of  the  Industry  under  the  provisions  of  the  Act,  with  respect 
thereto. 


596 

Sec.  5.  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  effect  the  operation  of  the 
provisions  of  this  Code  and  the  policy  of  the  Act  and  in  particular 
along  the  following  lines : 

(a)  Reports  to  administrator. — Recommendations  as  to  the  re- 
quirements by  the  Administrator  of  such  further  reports  of  persons 
engaged  in  the  Industry  of  statistical  information  and  keeping  of 
uniform  accounts  as  may  be  required  to  secure  the  proper  observ- 
ances of  the  Code  and  promote  the  proper  balancing  of  produc- 
tion and  consumption  and  the  stabilization  of  the  Industry  and 
emplo3'ment. 

(b)  Service  hureau.- — Recommendations  for  the  setting  up  of  a 
Service  Bureau  for  the  Industry  for  accounting,  credit,  and  other 
purposes,  to  aid  members  of  the  Industry  in  meeting  the  conditions 
of  the  emergency  and  the  requirements  of  this  Code. 

(c)  Promote  stabilization. — Recommendations  for  the  making  of 
requirements  as  to  trade  practices  by  persons  engaged  in  the  Indus- 
try as  to  methods  and  conditions  of  trading,  and  the  naming  and 
publication  of  prices  which  may  be  appropriate  to  avoid  discrimi- 
nation, to  promote  the  stabilization  of  the  Industry. 

(d)  Distress  merchandise. — Recommendations  for  regulating  the 
disposal  of  distress  merchandise  in  a  w^ay  to  secure  the  protection  of 
the  owners  and  to  promote  sound  and  stable  conditions  in  the 
Industry. 

(e)  Dealing  with  inequalities  that  endanger  industry  and  em- 
ployment.— Recommendations  for  dealing  with  any  inequalities  that 
may  otherwise  arise  to  endanger  the  stability  of  the  Industry  and 
of  production  and  employment. 

(f)  Investigation  of  molations. — The  Code  Authority  is  hereby 
appointed  as  an  emergency  committee  for  this  Code  of  Fair  Compe- 
tition and  subject  to  review  and  disapproval  of  the  Administrator  is 
empowered  to  investigate  whether  the  provisions  of  this  Code  are 
being  observed,  to  make  complaints  concerning  alleged  violations,  to 
cooperate  with  the  Administrator  of  the  Act;  to  propose  additions, 
modifications,  or  revisions  of  this  Code  and  generallj^  to  perform  such 
other  acts  as  may  be  reasonably  necessary  and  proper  to  put  the  pro- 
visions into  effect  and  accomplish  the  objects  and  purposes  of  the 
Act.  In  the  event  such  committee  shall  find  the  Rules  of  Fair  Com- 
petition, or  any  provisions  of  this  Code,  have  been  violated,  the  vio- 
lation shall  be  reported  to  the  Code  Authority  for  such  action  as  they 
deem  i^roper  in  accordance  wath  this  Code,  including  in  appropriate 
cases,  report  to  the  National  Recovery  Administration,  or  take  ap- 
propriate stejDs  to  institute  license  proceedings  in  accordance  with 
law  or  any  other  appropriate  legal  proceedings  provided  for  in  the 
Act. 

Sec.  6.  Such  recommendations  when  approved  by  the  Adminis- 
trator, after  such  notice  and  hearing  as  he  shall  specify,  shall  have 
the  same  force  and  effect  as  any  other  provisions  of  this  Code. 

Sec.  7.  The  Code  Authority  is  also  set  up  to  cooperate  with  the 
Administrator  in  making  investigations  as  to  the  functioning  and 
observance  of  any  of  the  provisions  of  this  Code  at  its  own  instance 


597 

or  on  complaint  by  any  person  aflFected,  subject  to  review  and  dis- 
approval of  the  Administrator. 

Sec.  8.  With  a  view  to  keeping  the  President  informed  as  to  the 
observance  or  nonobservance  of  this  Code  of  Fair  Competition  and 
as  to  whether  the  Industry  is  taking  appropriate  steps  to  effectuate 
the  declared  policy  of  the  Act,  each  member  of  the  Industry  shall  fur- 
nish duly  certified  reports  in  substance  as  follows,  and  in  such  form 
as  may  be  provided  and  at  such  intervals  as  the  Code  Authority  may 
prescribe,  subject  to  review  and  disapproval  of  the  Administrator. 

(a)  Wa(/t'S  and  hours  of  labor. — Eeturns  every  4  weeks  showing 
actual  hours  worked  by  the  various  occupational  groups  of  employ- 
ees and  minimum  weekly  rates  of  wages. 

(b)  Machinery  data. — Keturns  every  4  weeks  showing  number  of 
machines  operating  each  Aveek,  the  number  of  shifts  and  the  total 
number  of  machine  hours  each  week. 

(c)  Reports  of  production,  sales.,  stocks,  and  aixlers. — Monthly 
reports  showing  production  in  terms  of  the  commonly  used  unit 
(i.e.)  breakfast  furniture,  stocks  on  hand,  both  sold  and  unsold, 
stated  in  the  same  terms. 

Sec.  9.  The  Executive  Secretary  and/or  the  Association  is  hereby 
constituted  the  agency  to  collect  and  receive,  as  confidential  infor- 
mation, such  individual  members'  reports.  Such  reports  shall  be 
filed  by  the  Secretary  for  reference  in  such  form  as  to  eliminate 
identification  of  anj^  individual  member,  and  shall  be  available  for 
the  inspection  only  by  the  Secretary  or  the  Administrator  or  their 
duly  authorized  representatives.  The  Executive  Secretary  shall 
furnish  the  Code  Authority  with  the  summaries  of  the  data  and 
statistics  he  compiles  from  the  members'  individual  reports. 

Sec.  10.  In  addition  to  the  information  required  to  be  submitted 
by  the  Code  Authority,  there  shall  be  furnished  to  Government 
Agencies  such  statistical  information  as  the  Administrator  may  deem 
necessary  for  the  purj^oses  recited  in  Section  3  (a)  of  the  Act  to  such 
Federal  and  State  agencies  as  the  Administrator  may  designate ;  nor 
shall  anything  in  any  code,  agreement,  or  license  relieve  any  person 
of  any  existing  obligation  to  furnish  reports  to  GoA'ernment  agencies. 

Sec.  11.  Each  member  shall,  within  ten  (10)  days  after  the  effec- 
tive date  of  this  Code,  publish  to  its  customers  and  file  with  the  Sec- 
retary and/or  the  Association  each  and  every  price  list,  duly  certified 
by  a  proper  executive,  showing  all  prices  of  their  respective  merchan- 
dise assembled  or  processed  in  the  Industry,  and  all  terms.  Each  of 
the  first  lists  of  prices  and  terms  of  sale  filed  by  any  members,  as 
above  provided,  shall  take  effect  on  the  date  of  filing  thereof.  None 
of  the  prices  and  terms  in  any  list  filed  by  any  members  shall  be 
changed  except  by  the  filing  of  such  member  with  the  Secretary 
and/or  the  Association  of  a  new  list  of  prices  and  terms,  which  shall 
become  effective  five  (5)  days  after  the  date  on  which  siuh  new  price 
list  and  terms  of  sale  shall  have  been  filed.  The  failure  of  any  manu- 
facturer to  adhere  to  his  prices  and  terms  of  sales  filed,  as  herein  pro- 
vided, and  an}'  other  deviation  from  the  provisions  of  this  Section 
shall  be  an  unfair  method  of  competition.* 

•  See  paragraph  2  of  order  approving  this  Code. 


598 

Sec.  12.  Members  of  the  Industry  shall  report  on  the  tenth  (10th) 
day  of  each  month  to  the  Code  Authority  a  list  of  close-outs  and  sec- 
onds accumulated  in  the  preceding  month,  and  shall  file  with  the 
Code  Authority  its  price  list  and  terms  of  such  seconds  and  close-outs 
in  accordance  Avith  the  provisions  as  herein  provided  in  Section  10  of 
Article  VII.  The  member  may  sell  such  seconds  or  close-outs  at  any 
time  at  his  own  price  as  filed  with  the  Code  Authority,  provided,  he 
shall  distinctly  mark  his  products  as  Close-Outs  or  Seconds,  and  shall 
thereafter  furnish  the  name  and  addresses  of  the  purchaser  of  close- 
outs  or  seconds  to  the  Code  Authority. 

Article  VIII — Trade  Practice  Rules 

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

Rule  1.  False  Marking  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,  fin- 
ish, or  preparation  of  any  product  of  the  Industry,  or  otherwise. 

Rule  2.  M isrepresentat ion  or  False  or  Misleading  Advertising, — 
The  making  or  causing  or  permitting  to  be  made  or  published  any 
materially  false,  inaccurate,  or  deceptive  statement  by  way  of  adver- 
tisement or  otherwise,  whether  concerning  the  grade,  quality,  quan- 
tity'', 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  otherwise,  having  the 
tendency  or  capacity  to  mislead  or  deceive  customers  or  prospective 
customers. 

Rule  3.  Conmierdal  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  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  conmiercial  bribery  as  hereinabove  defined. 

Rule  4.  Interference  with  Contraeitual  Relatiotis. — 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. 

Rule  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 
purchasers  on  like  terms  and  conditions. 

Rule  6.  Giving  of  Prises,  Preniiuvis,  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,  or  selling  any  furniture  product 


599 

or  any  article  whatsoever,  included  in  the  purchase  of  breakfast 
furniture,  at  an  unreasonable  price,  for  the  purpose  of  evading  or 
defeating  the  terms  of  this  Code. 

EuLE  7.  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  disparagement  of  the  grade  or  quality  of  their  goods. 

Rule  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  and  without  bringing 
such  suits  or  proceedings  within  a  reasonable  time,  with  the  tendency 
or  effect  of  harassing  competitors  or  intimidating  their  customers. 

Rule  9.  Espionage  of  Competitors. — Securing  confidential  infor- 
mation about  a  competitor's  business  by  a  false  or  misleading  state- 
ment or  representation,  by  a  false  impersonation  of  one  in  authority, 
by  bribery,  or  b}'  any  other  unfair  method  or  any  other  secret  means 
where  the  effect  may  be  to  hinder  or  stifle  competition. 

Rule  10.  Piracy  of  trade  marks  and  trade  names. — The  imitation 
of  a  trade  mark,  trade  name,  slogan,  or  the  other  marks  of  identifi- 
cation of  competitors,  having  the  tendency  and  capacity  to  mislead 
or  deceive. 

Rule  11.  Terms  of  settlement. — Selling  on  more  favorable  terms 
than  two  (2%)  percent  in  thirty  (30)  days,  net  sixty  (60)  days  from 
date  of  shipment;  provided,  however,  that  where  the  purchaser  be- 
cause of  departmental  accounting  practices  requires  a  cash  discount 
of  five  (5%)  percent  and  the  member  consents  to  it,  invoices  shall 
be  increased  sufficiently  to  permit  such  discount,  and  in  every  such 
case  the  net  return  of  the  member  shall  not  be  less  than  it  w^ould 
have  been  had  the  cash  discount  been  two  (2%)  percent  instead  of 
five  (5%)  percent.  Where  it  is  the  practice  of  a  buyer  to  make 
monthly  settlement  of  all  invoices,  a  member  may  allow  the  deduc- 
tion of  the  cash  discount  if  payment  is  made  not  later  than  the 
fifteenth  (15)  of  the  calendar  month  following  dates  of  shipment. 
Credit  terms  shall  be  included  in  the  statement  and  billhead  of  each 
member  of  the  Industry. 

Rule  12.  Consignment. — The  shipping  of  goods  on  consignment  or 
memorandum  either  directly  or  indirectly,  except  under  circum- 
stances to  be  defined  by  the  Code  Authority  where  peculiar  circum- 
stances in  the  Industry  require  the  practice. 

Rule  13.  Returns. —  (a)  There  shall  be  no  returns  of  porcelain 
breakfast  furniture  except  for  factory  defects,  and  except  for  such 
merchandise  not  shipped  within  the  specified  time  in  full  compliance 
"with  the  specifications  and  terms  of  the  order.  The  above  exception 
shall  apply  only  to  claims  and  returns  by  customers  made  within  fif- 
teen (15)  days  from  the  receipt  of  goods  by  them. 

(b)  Merchandise  defective  in  manufacturing  or  assembling  not 
discovered  or  readily  ascertainable  within  the  period  of  fifteen  (15) 
days  from  the  receipt  of  goods  by  customers  may  be  returned  and 
accepted  for  credit  bj'  members,  providing,  however,  the  member  of 
the  Code  Authority  appointed  by  the  Administrator  shall  specify 
the  time  and  place  for  a  hearing  between  member  of  the  Industry 
and  customer  to  determine  whether  such  defect  was  due  to  faulty^ 
manufacturing  or  assembling. 


600 

Rule  14.  Pull-hacks. — There  shall  be  no  allowances  on  "  Pull- 
Backs  "  of  breakfast  furniture,  nor  shall  they  be  accepted  for  credit 
by  any  member  of  the  Industry,  except  as  provided  for  in  Rule  13 
of  this  Article. 

Rule  15.  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. 

Article  IX — JMooiFicATiOiSrs 

Section  1.  (a)  This  Code  and  all  the  provisions  thereof  are 
expressly  made  subject  to  the  right  of  the  President,  in  accordance 
with  the  provisions  of  subsection  (b)  of  Section  10  of  the  National 
Industrial  Recovery  Act,  from  time  to  time  to  cancel  or  modify 
any  order,  approval,  license,  rule,  or  regulation  issued  under  Title  I 
of  said  Act  and  specifically,  but  without  limitation,  to  the  right  of 
the  President  to  cancel  or  modify  his  approval  of  this  Code  or  any 
conditions  imposed  by  him  upon  his  approA^al  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  approval  of  the  Administrator. 

Sec.  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 
Administrator,  be  modified  or  eliminated  if  it  appears  that  the  public 
needs  are  not  being  served  thereby  and  as  changes  in  circumstances 
or  any  experience  may  indicate.  They  shall  remain  in  effect  unless 
and  until  so  modified  or  eliminated  until  the  expiration  of  the  Act. 
It  is  contemplated  that  from  time  to  time  supplementary  provisions 
to  this  Code  or  additional  Codes  will  be  submitted  for  the  approval 
of  the  President  to  prevent  unfair  competition  in  price  and  other 
unfair  purposes  and  to  promote  the  policies  of  Title  I  of  the  Act 
and  which  shall  not  conflict  with  the  provisions  thereof. 

Article  X — INIonopolies 

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  XI — Price  Increases 

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


Approved  Code  No.  239. 
Registry  No.  312-04. 


o 


Approved  Code  No.  240 

CODE  OF  FAIR  COMPETITION 

FOR   THE 

ADVERTISING    DISPLAY    INSTALLATION    TRADE 

As  Approved  on  January  30,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

ADVERTISING  DISPLAY  INSTALLATION  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  Advertising  Display  Installation  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 
President,  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;  provided,  however,  that 
the  provisions  of  Article  VIII,  Section  2,  insofar  as  they  prescribe 
a  waiting  period  between  the  filing  with  the  Code  Authority  and  the 
effective  date  of  revised  price  lists  or  revised  terms  and  conditions  of 
sale  be  and  they  are  hereby  stayed  pending  my  further  order  either 
within  a  period  of  60  days  from  the  effective  date  of  this  Code  or 
after  the  completion  of  a  study  of  open  price  associations  now  being 
conducted  by  the  National  Recovery  Administration. 

Hugh  S.  Johnson, 
Administrator  for  Indiistrial  Recovery. 

Approval  recommended : 
A.  D.  Whiteside, 

Division  Ad'ministrator. 

Washington,  D.G.^ 

January  30^  193^. 

36711° 313-150 34  (601) 


The  President, 

The  White  House. 


INTRODUCTION 


Sir  :  This  is  the  report  of  the  Administrator  to  the  President  on 
the  application  for,  and  public  hearing  on,  a  Code  of  Fair  Com- 
petition for  the  Advertising  Display  Installation  Trade  as  proposed 
by  the  National  Display  Installation  Association  representative  of 
that  business.  The  Code  presented  herewith  was  revised  by  the 
Executive  Committee  of  the  National  Display  Installation  Associa- 
tion following  the  public  hearing,  which  was  held  Tiiesdaj'^,  November 
21   1933. 

The  hearing  was  conducted  in  Washington  on  November  21,  1933. 
Every  person  who  requested  an  appearance  was  freely  heard  in 
accordance  with  statutory  and  regulatory  requirements. 

There  is  one  national  trade  association,  namely,  the  National 
Display  Installation  Association  wdth  offices  at  1209  Sycamore  Street, 
Cincinnati,  Ohio.  There  is  no  evident  reason  why  the  truly  rep- 
resentative character  of  said  Association  should  be  questioned. 

DEFINITION 

Advertising  display  installation  is  a  small  item  in  national  econ- 
omy, for  the  services  rendered  by  installation  concerns  require  the 
employment  of  but  fifteen  hundred  (1,500)  employees  and  approx- 
mate  $2,500,000  in  gross  business.  The  definition  embraces  no  pro- 
ductive functions,  in  the  generall}^  accepted  meaning;  it  is  purely 
a  service  available  to  anyone  who  wishes  to  have  his  advertisements 
placed  in  or  on  windows  of  retail  stores  or  in  interiors  of  retail 
stores.  To  supplement  the  explanation  of  the  service  involved,  it 
might  be  stated  that  these  advertising  displays  are  standard  set 
forms  furnished  to  the  installation  concerns  by  national  advertisers. 

ECONOMIC  AND  STATISTICAL  MATERIAL 

The  Advertising  Display  Installation  Trade  in  1932  furnished 
employment  to  1,500  employees.  In  1929  employees  numbered 
2,000.  There  are  approximately  300  concerns  in  the  Trade,  the 
number  remaining  unchanged  since  1928.  It  can  be  seen  that  there 
has  been  noticeably  less  employees  since  1929 — in  fact,  a  decrease  of 
25%.  This  service  of  display  installation  seems  to  be  a  Trade  com- 
prised in  the  main  of  "  trimmers  "  who  do  the  actual  installing  in 
retail  store  windows.  The  Code  does  not  permit  anyone  under  18 
years  of  age  to  be  engaged  as  a  "  trimmer." 

(602) 


603 

RESUME  OF  THE  (X)DE 

Tlie  proponents  of  the  Code  have  established  forty  hours  in  any 
one  week  or  8  hours  in  any  twenty-four  hour  period  for  all  employees 
other  than  trimmers.  No  trimmer  shall  be  permitted  to  work  in 
excess  of  40  hours  or  install  more  than  45  displays  in  any  one  week 
averaged  over  any  consecutive  12  weeks'  period.  Sufficient  latitude 
is  thus  allowed  the  employers  so  that  the  hours  of  trimmers  can  be 
adjusted  to  meet  the  irregular  demand  for  service  for  those  on 
whom  the  members  of  the  display  installation  trade  are  dependent 
for  their  business. 

Evidence  was  presented  at  the  public  hearing  to  indicate  that 
more  stringent  regulation  of  the  hours  of  trimmers  would  work 
hardship  on  members  of  the  Trade,  as  well  as  on  employees, 

A  minimum  hourly  wage  of  35  cents  is  established  for  all  employees 
except  trimmers.  Trimmers,  the  majority  of  whom  are  paid  on  a 
piece  work  basis  if  compensated  on  an  hourly  basis,  are  paid  85  cents 
per  hour  as  a  minimum,  if  on  a  piece  work  basis  a  minimum  of  90 
cents  per  window  installation,  or  50  cents  per  interior  installation. 
There  is  established  for  trimmers  a  minimum  daily  wage  which  will 
allow  the  employee  additional  protection. 

The  administration  of  the  Code  closely  follows  the  lines  recom- 
mended by  the  N,R,A,  Legal  Division, 

The  proponents  of  the  Code  are  arranging  for  the  nomination 
and  election  of  the  Trade  members  of  the  Code  Authority,  such 
arrangements  to  be  completed  not  later  than  90  days  after  the 
effective  date  of  the  Code.  In  the  interim,  the  regularly  constituted 
Board  of  Directors  of  the  National  Display  Installation  Association 
are  serving  in  this  capacity, 

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  obstructicms  to  the  free  flow  of  interstate  and  foreign 
commerce  which  tend  to  diminish  the  amount  thereof  and  will  pro- 
vide for  the  general  Avelfare  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  man- 
agement 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  Trade  normall}'  employs  not  more  than  50,000  employees; 
and  is  not  classified  by  me  as  a  major  trade. 


604 

(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  associ- 
ation 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  jjermit  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  J>een  approved. 
Respectfully, 

Hfgh  S.  Johnson, 

A  dministrator. 
January  30,  1934. 


CODE  OF  FAIR  COMPETITION 

FOR   THE 

ADVERTISING  DISPLAY  INSTALLATION  TRADE 

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  Advertising  Display  Installation  Trade, 
and  shall  be  the  standard  of  fair  competition  for  such  Trade  and 
shall  be  binding  upon  every  member  thereof. 

Article  II — Definitions 

The  term  "Advertising  Display  Installation  Trade  "  as  used  herein 
includes  the  service  of  installation,  for  others,  of  display  advertising 
material  in  or  on  the  windows  or  interiors  of  retail  stores,  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  Trade  in  any  capacity  receiving  compensation  for  his  services, 
irrespective  of  the  nature  or  method  of  payment  of  such  com- 
pensation. 

The  term  "  trimmer  "  as  used  herein  includes  any  employee  whose 
principal  work  is  the  installation  of  Advertising  Display. 

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

The  term  '*  member  of  the  Trade  "  includes  anyone  engaged  in 
the  Trade  as  above  defined,  either  as  an  employer  or  on  his  own 
behalf. 

The  term  "  window  installation "  as  used  herein  includes  the 
placing  of  the  advertiser's  display  material  in  a  window  of  a  store 
in  such  maimer  as  to  make  practically  a  complete  window  trim,  in- 
cluding the  placing  of  a  counter  card  or  small  counter  display  on 
the  counter. 

The  term  "  interior  installation "  as  used  herein  includes  the 
placing  of  the  advertiser's  display  mat^erial  in  the  interior  of  a  store 
with  decorative  treatment,  regardless  of  location. 

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

(G05) 


606 
Article  III — Hours 

1.  No  triininer  shall  be  permitted  to  work  in  excess  of  forty  (40) 
hours  or  to  install  more  than  forty -five  (45)  window  installations 
per  week  averaged  over  any  consecutive  twelve  (12)  weeks  in  an}'' 
one  (1)  year. 

2.  No  other  employee  shall  be  permitted  to  work  in  excess  of  forty 
(40)  hours  in  any  one  (1)  week  or  eight  (8)  hours  in  any  twenty- 
four  (24)  hour  period. 

3.  The  maximum  hours  hereinabove  set  forth  shall  not  apply  to 
outside  salesmen  or  employees  engaged  in  a  managerial  or  executive 
capacity  receiving  thirty-five  dollars  ($35.00)   a  week  or  more. 

4.  No  employee  shall  be  permitted  to  work  more  than  six  (6) 
days  in  any  seven  (7)  da}-  period. 

Article  IV — Wages 

1.  Except  as  hereinafter  expressly  stipulated  otherwise,  no  em- 
ployee shall  be  paid  at  less  than  the  rate  of  thirty-five  cents  ($0.35) 
per  hour. 

2.  No  trimmer  compensated  on  an  hourly  basis  shall  be  paid  at  less 
than  the  rate  of  eighty-five  cents  ($0.85)  per  hour. 

3.  No  trimmer  compensated  on  a  piecework  basis  shall  be  paid 
at  less  than  the  rate  of  ninety  cents  ($0.90)  per  window  installation 
or  fifty  cents  ($0.50)  per  interior  installation, 

4.  No  trinnner  shall  be  paid  less  in  any  twenty-four  (24)  hour 
period  than  a  wage  equivalent  to  that  which  such  trimmer  would 
be  entitled  to  receive  for  three  (3)  working  hours. 

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

6.  No  employee  whose  full  time  weekly  hours  for  the  four  (4) 
weeks  ended  June  17,  1933,  are  reduced  by  the  provisions  of  this 
Code  by  twenty  percent  (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  twenty  percent  (20% ) ,  shall  have 
his  or  her  said  earnings  reduced  by  more  than  fifty  percent  (50%)  oi 
the  amount  calculated  by  multiplying  the  reduction  in  hours  in 
excess  of  twenty  percent  (20%)  by  the  hourly  rate. 

7.  Female  employees  performing  substantiall}^  the  same  work  as 
male  employees  shall  receive  the  same  rates  of  pajj^  as  a  male 
emplo3'ee. 

Article  V — General  Labor  Provisions 

1.  No  person  under  sixteen  (16)  years  of  age  shall  be  employed 
in  the  Trade  nor  anyone  under  eighteen  (18)  years  of  age  as  a  trim- 
mer. 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  authority  in  such  State  empowered  to  issue  employ- 
ment or  age  certificates  or  permits,  showing  that  the  employee  is  of 
the  required  age. 


607 

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  emploj-ment  to  join  any  company  union  or  to 
refrain  from  joining,  organizing,  or  assisting  u  lalior  organization  of 
his  own  choosing. 

4.  Employers  shall  comply  with  the  maximvim  hours  of  labor, 
minimum  rates  of  pay,  and  other  conditions  of  employment,  ap- 
pj'oved  or  prescribed  by  the  President. 

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

6.  Emploj-ers  shall  not  reclassify  employees  or  duties  of  occupa- 
tions performed  by  emplovees  so  as  to  defeat  the  purposes  of  the 
Act. 

7.  Each  employer  shall  post  in  conspicuous  places  accessible  to  em- 
ployees full  copies  of  this  Code. 

Article  VI — Administration 

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

Organization,  powers,  and  duties  of  Code  Authority : 

1.  The  Code  Authority  shall  consist  of  five  (5)  individuals,  or 
such  other  number  as  may  be  approved  from  time  to  time  by  the 
Administrator,  to  be  selected  as  hereinafter  set  forth,  and  of  such 
additional  members,  without  vote,  as  the  Administrator,  in  his  dis- 
cretion, may  appoint  to  represent  such  groups  or  governmental  agen- 
cies as  he  ma}'  designate. 

2.  Every  member  of  the  Trade  who  qualifies  as  provided  in  Sec- 
tion 10  of  this  Article  shall  be  entitled  to  one  (1)  vote  in  the  nomi- 
nation and  election  of  the  Trade  members  of  the  Code  Authority. 
The  proponents  of  this  Code  shall  arrange  for  such  nomination  and 
election  not  later  than  ninety  (90)  days  after  the  effective  date  of 
this  Code.  In  the  interim,  the  regularly  constituted  Board  of  Di- 
rectors of  the  National  Display  Installation  Association  shall  exer- 
cise all  the  rights,  powers,  and  prerogatives  of  the  Code  Authority 
as  herein  determined. 

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  anj^  amendments  when  made  thereto,  to- 
gether with  such  other  information  as  to  membership,  organization, 
and  activities  as  the  Administrator  may  deem  necessary  to  effe<?tuate 
the  purposes  of  the  Act. 

4.  In  order  that  the  Code  Authority  shall  at  all  times  be  truly 
representative  of  the  Trade  and  in  other  respects  comply  with  the 


608 

provisions  of  the  Act,  the  Administrator  may  provide  such  hear- 
ings as  he  may  deem  proper;  and  thereafter,  if  he  shall  find  that 
the  Code  Authority  is  not  truly  representative  or  does  not  in  other 
respects  comply  with  the  provisions  of  the  Act,  may  require  an  ap- 
propriate modification  in  the  method  of  selection  of  the  Code 
Authority. 

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  anyone  for  any 
act  of  any  other  member,  officer,  agent,  or  employee  of  the  Code 
Authority.  Nor  shall  any  member  of  the  Code  Authority  be  liable 
to  anyone  for  any  action  or  omission  of  act  under  the  Code,  except 
for  his  own  williul  misfeasance  or  nonfeasance. 

G.  The  Code  Authority  may  utilize  the  facilities  of  and  cooperate 
with  any  and  all  trade  and  labor  associations  or  organizations,  na- 
tional, regional,  or  local,  in  the  Advertising  Display  Installation 
Trade  in  such  manner  as  it  deems  most  useful  to  its  work,  with  the 
consent  of  such  organizations. 

7.  The  Code  Authority  may  coordinate  the  administration  of  this 
Code  with  such  other  Codes,  if  anj^,  as  may  be  related  to  the  Trade, 
or  any  subdivision  thereof  and  may  assist  in  promoting  joint  action 
upon  matters  of  common  interest  by  establishing  a  joint  Advisory 
Board  to  which  one  (1)  or  more  of  its  members  shall  be  delegated. 

8.  The  Code  Authority  may  appoint  and  remove  and  fix  the  com- 
pensation of  such  employees,  accountants,  attorneys,  and  officers  as 
it  shall  deem  necessary  or  proper  for  the  purpose  of  administering 
the  Code. 

9.  The  Code  Authority  shall  obtain  from  members  of  the  Trade, 
as  soon  as  the  necessary  readjustments  within  the  Trade  can  be  made, 
reports  based  on  periods  of  one  (1),  two  (2),  or  four  (4)  weeks,  or 
multiples  thereof,  for  use  of  the  Code  Authority  and  the  Adminis- 
trator in  the  administration  and  enforcement  of  the  Code,  and  for 
the  information  of  the  President,  and  to  give  assistance  to  members 
of  the  Trade  in  im])roving  methods,  or  in  prescribing  uniform  system 
of  accounting  and  reporting. 

10.  Members  of  the  Trade  shall  be  entitled  to  participate  in  and 
share  the  benefits  of  the  activities  of  the  Code  Authority,  to  partici- 
pate in  the  selection  of  the  members  thereof  and  to  use  the  N.R.A. 
Code  Insignia,  by  assenting  to  and  complying  with  the  requirements 
of  this  Code  and  sustaining  their  reasonable  share  of  the  expense  of 
preparation,  iiresentation,  and  administration  of  this  Code.  The 
reasonable  share  of  such  expense  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. 

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

12.  If  the  Administrator  shall  determine  that  any  action  of  a  code 
authority  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  days  to  afford  an 


609 

opportunity  for  investigation  of  the  merits  of  such  action  and  fur- 
ther cont^ideration  by  such  code  authority  or  agency  pending  final 
action,  which  shall  be  taken  only  upon  approval  by  the 
Administrator. 

Article  VII — Trade  Practices 

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

1.  Inaccui'atc  Adcerthhifj. — No  member  of  the  Trade  shall  use 
advertising  or  other  representation  Avhich  is  inaccurate  in  any  mate- 
rial particular  or  in  any  way  misrepresent  any  commodity  (including 
its  use,  trade  mark,  grade,  quality,  quantity,  origin,  size,  material, 
content,  or  preparation)  or  credit  terms,  values,  policies,  services, 
or  the  nature  or  form  of  the  business  conducted. 

2.  Commercial  Briher'y. — No  member  of  the  Trade  shall  give,  per- 
mit 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 part)',  without  the  knowledge  of  such  employer,  principal,  or 
party.  Commercial  bribery  provisions  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. 

3.  Selling  Below  Cost. — No  member  of  the  Trade  shall  sell  any 
commodity  or  service  at  a  price  below  cost.  However,  any  member 
may  meet  the  price  competition  of  anyone  whose  costs  under  this 
Code  provision  are  lower.  Cost  shall  be  determined  in  accordance 
with  the  principles  enumerated  in  any  standard  cost  system  formu- 
lated by  the  Code  Authority  with  the  approval  of  the  Administrator. 

4.  Secret  Rebate. — No  member  of  the  Trade  shall  secretly  offer  or 
make  any  payment  or  allowance  of  a  rebate,  refund,  commission, 
credit,  unearned  discount,  excess  allowance,  free  or  extra  service, 
whether  in  the  form  of  money  or  otherwise,  for  the  pur^Dose  of  in- 
fluencing a  sale,  nor  shall  a  member  secretly  extend  to  any  customer 
any  special  service  or  privilege  not  extended  to  all  customers  of  the 
same  class. 

5.  Inaccurate  Reference  to  Competitors. — No  member  of  the  Trade 
shall  use  advertising  or  other  representation  which  refers  inac- 
curately in  any  material  particular  to  any  competitors  or  their  com- 
modities, prices,  values,  credit  terms,  policies,  or  services. 

6.  Interferences  with  C ontr actual  Relations. — No  member  of  the 
Trade  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. 

7.  No  member  of  the  Trade  shall  allow  any  discount;  all  Avork 
shall  be  billed  at  least  weeldy  and  shall  be  payable  net  ten  (10) 
days. 

8.  No  member  of  the  Trade  shall  make  a  window  installation 
which  does  not  bear  clearly  the  exact  date  of  such  installation,  in 
accordance  with  the  regulation  of  the  Code  Authority. 


610 

9.  No  member  of  the  Trade  shall  remove  or  interfere  with  an 
installation  within  seven  (7)  days  of  the  date  shown  thereon. 

10.  No  member  of  the  Trade  shall  place  a  poster  or  in  any  way 
mar  or  obstruct  the  view  of  an  installation  within  seven  (7)  days 
of  the  date  shown  thereon. 

11.  No  member  of  the  Trade  shall  give,  permit  to  be  given,  or 
offer  to  give  anything  of  value  for  the  purpose  of  influencing  or 
rewarding  the  action  of  any  retailer  in  granting  to  said  member  of 
the  Trade  exclusive  display  privileges. 

Article  VIII — Open  Price  Agreement 

1.  The  Code  Authority  shall  prepare  and  complete  as  soon  as  pos- 
sible a  basic  classification  of  the  services  of  the  Trade  together  with 
a  scale  of  extras  and  deductions  that  shall  be  added  to  or  deducted 
from  the  base  prices.  This  classification  may  be  amended  from  time 
to  time  by  the  Code  Authority. 

2.  This  classification  of  services  shall  be  made  available  by  the 
Code  Authority  to  every  member  of  the  Trade.  Within  thirty  (30) 
days  thereafter  each  member  of  the  Trade  shall  file  with  the  Code 
Authority,  or  otherwise  as  it  may  require,  a  list  showing  the  mini- 
mum base  prices  for  all  services.  Any  subsequent  change  in  a  price 
list  shall  be  filed  as  provided  herein  to  become  effective  not  earlier 
than  ten  (10)  days  from  the  date  of  filing,  except  that  the  first  price 
list  so  filed  shall  become  effective  immediately.^ 

3.  No  member  of  the  Trade  shall  contract  for  the  sale  of  or  sell 
any  service  at  less  than  such  current  minimum  prices  and  terms  as  he 
shall  have  established  by  filing  with  the  Code  Authority  as  herein- 
above provided. 

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 
President  to  cancel  or  modify  his  approval  of  this  Code  or  any 
conditions  imposed  b}'  him  upon  his  approval  thereof. 

2.  This  Code,  except  as  to  provisions  required  by  the  Act,  may  be 
modified  on  the  basis  of  experience  or  changes  in  circumstances, 
such  modification  to  be  based  upon  application  to  the  Administrator 
and  such  notice  and  hearing  as  he  shall  specify,  and  to  become  effec- 
tive on  approval  of  the  Administrator. 

Article  X — Monopolies 

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

^  See  paragraph  2  of  order  approving  this  Code. 


611 

Article  XI — Price  Increases 

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

Article  XII — Effective  Date 

This  Code  shall  become  effective  on  the  10th  day  after  date  of 
approval  by  the  President. 


Approved  Code  No.  240 
Registry  No.  1702-32 


o 


Approved  Code  No.  241 

CODE  OF  FAIR  COMPETITION 

FOR  THE 

CHEWING  GUM  MANUFACTURING  INDUSTRY 

As  Approved  on  January  30,  1934 


ORDER 

APPROVING  CODE  OF  FAIR  COMPETITION 

FOR   THE 

CHEWING  GUM  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  Chewing  Gum  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,  THEPtEFORE,  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;  pro- 
vided, however,  that  the  provisions  of  Article  VII,  Section  1,  insofar 
as  they  prescribe  a  waiting  period  between  the  filing  with  the  Code 
Authority  and  the  effective  date  of  revised  price  lists  or  revised 
terms  and  conditions  of  sale  be  and  they  are  hereby  stayed  pending 
my  further  order  either  within  a  period  of  60  days  from  the  effective 
date  of  this  Code  or  after  the  completion  of  a  study  of  open  price 
associations  now  being  conducted  by  the  National  Recovery  Admin- 
istration. 

Hugh  S.  Johnson, 
Administratoi'  for  Industnal  Recovery. 

Approval  recommended : 
A.  D.  Whiteside, 

Division  Administrator. 

Washington,  D.C, 

January  30,  1034. 

36710' 313-149 34  (613) 


The  President, 

The  White  House. 

Sir:  This  is  a  report  of  the  Code  of  Fair  Competition  for  the 
Chewing  Gum  Manufacturing  Industry  as  revised  after  a  public 
hearing  conducted  in  Washington  on  December  4,  1933,  in  accord- 
ance with  the  provisions  of  the  National  Industrial  Recovery  Act. 

The  Deput}^  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  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 
pertinent  provisions  of  said  Title  of  said  Act,  including  without  lim- 
itation 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  opj^ress 
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, 

AdnymistratoT, 
January  80,  1934. 

(614) 


CODE  OF  FAIR  COMPETITION 

FOR   THE 

CHEWING  GUM  MANUFACTURING  INDUSTRY 

Article  I — Purposes 

To  effect  the  policies  of  Title  I  of  the  National  Industrial  Recovery 
Act,  this  Code  is  established  as  a  Code  of  Fair  Competition  for  the 
Chewing  Gum  Manufacturing  Industrj^,  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  "  the  Industry  "  as  used  herein  includes,  within  the 
United  States,  the  manufacturing  and  primary  distributions  of  chew- 
ing gum  and/or  chewing  gum  base,  and  such  related  branches  or 
subdivisions  as  may  from  time  to  time  be  included  under  the  jiro- 
visions  of  this  Code  by  the  President  of  the  United  States,  after 
such  notice  and  hearing  as  he  may  prescribe. 

2.  The  term  "  primary  distribution  '"  as  used  herein  means  the 
distribution  by  a  manufacturer  of  his  own  production  or  distribu- 
tion by  a  distributor  for  w^hom  is  manufactured  a  product  not  identi- 
fied b}'  the  manufacturer's  brand  or  name  to — 

(a)   Other  manufacturers 
^b)  Wholesalers  or  jobbers 
(c)  Retailers  direct 

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. 

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

4^a.  The  term  "  supervisory  employee  "  as  used  herein  means  a 
foreman  or  forelady  in  charge  of  a  department. 

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

6.  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  Recover}-. 

7.  The  term  "  the  United  States  "  as  used  herein  means  and  in- 
cludes the  states  and  territories  comprising  the  United  States  of 
America. 

(615) 


616 

8.  The  term  "Association  "  as  used  herein  means  National  Associa- 
tion of  Chewing  Gum  Manufacturers,  a  trade  association  having  its 
offices  at  Pier  23,  Rosebank,  Staten  Island,  New  York. 

9.  Population  for  the  purposes  of  this  Code  shall  be  determined  by 
reference  to  the  latest  Federal  Census. 

Article  III — Hours 

1.  Maxiniuni  Hours. — No  employee,  except  as  herein  otherwise 
provided  in  this  Article,  shall  be  permitted  to  work  in  excess  of  10 
hours  in  any  one  day  or  in  excess  of  40  hours  in  any  one  week. 

2.  No  fireman,  engineer,  chauffeur,  or  employee  engaged  in  the 
preparation,  care  and  maintenance  of  plant,  machinery,  and  equip- 
ment, except  as  herein  otherwise  provided  in  this  Article,  shall  be 
permitted  to  work  more  than  44  hours  in  any  one  week. 

3.  Any  employee  shall  be  permitted  to  work  up  to  8  hours  in  ex- 
cess of  the  weekly  hours  provided  in  Sections  1  and  2  of  this  Article 
in  each  of  any  8  weeks  during  any  January  1st  to  June  30th  and 
July  1st  to  December  31st  six-month  period  provided  the  weekl}' 
average  for  any  such  period  shall  not  exceed  the  weekly  number  of 
hours  mentioned  in  Sections  1  and  2  of  this  Article;  but  in  the 
event  the  employment  of  any  employee,  except  an  office  employee,  is 
terminated  by  any  employer  before  said  employee  has  been  continu- 
ously employed  by  said  employer  for  six  months  immediately  prior 
thereto,  the  average  number  of  weekly  hours  worked  by  said  em- 
ployee shall  be  computed  from  the  date  of  beginning  of  his  employ- 
ment to  the  date  of  termination  thereof  and  if  such  computation 
shows  a  weekly  hour  average  in  excess  of  the  weekly  hours  herein- 
above in  Sections  1  and  2  of  this  Article  permitted,  said  employee 
shall  be  paid  time  and  one  third  for  such  excess. 

4.  Exetnjytion^  from  Maxi7num  Hour  Prov'moni^. — ^The  following 
employees  shall  be  exempt  from  maximum  hour  provisions — 

(a)  Employees  in  managerial  or  executive  capacities,  or  super- 
visory employees,  who  earn  not  less  than  $35.00  per  week. 

(b)  Outside  salesmen. 

(c)  Watchmen,  provided,  however,  that  watclimen  shall  not  be 
permitted  to  work  in  excess  of  60  hours  in  any  one  week. 

5.  Standard  Week. — No  employee  shall  be  permitted  to  work  more 
than  6  daj^s  in  any  7-day  period. 

6.  Employment  hy  Several  Eiiiployers. — No  employer  shall  know- 
ingly permit  any  employee  to  work  for  a  time  wliich,  when  totaled 
with  that  already  performed  with  another  employer  or  employers  in 
this  Industry,  exceeds  the  maximum  permitted  herein. 

7.  Overtwie. — For  any  employment  in  excess  of  the  maximum 
hours  permitted  hereinabove  in  this  Article  employees  shall  be  com- 
pensated at  the  rate  of  time  and  one  third. 

8.  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 
weekly  earnings  reduced.  No  employee  whose  full  time  weekly 
hours  are  reduced  20%  or  more  shall  have  his  or  her  full  time  weekly 
earnings  reduced  by  more  than  10% ;  provided,  however,  that  this 


617 

section  shall  not  apply  to  any  employee  whose  normal  full  time 
weekly  earnings  "were  more  than  $35.00  per  Aveek  prior  to  July  1,  1933, 
and  whose  normal  full  time  weekly  earnings  were  not  reduced  to  less 
than  $35.00  per  week  between  July  1,  1933,  and  the  effective  date  of 
this  Code. 

Article  IV — Minimum  Wages 

1.  Office  Employees. — No  office  employee  or  outside  salesman  shall 
be  paid  at  less  than  the  rate  of  $15.00  per  week  in  cities  of  over 
500,000  population  or  their  metropolitan  districts,  or  less  than  at 
the  rate  of  $14.50  per  week  in  cities  having  less  than  500,000  popula- 
tion but  more  than  250,000  population,  or  their  metropolitan  districts, 
or  less  than  at  the  rate  of  $14.00  per  week  in  cities,  towns,  villages, 
or  other  places  with  less  than  250,000  population  or  their  metropoli- 
tan districts. 

2.  Male  Employees. — No  male  employee  not  otherwise  provided  for 
in  this  Article  shall  be  paid  at  less  than  the  rate  of  40  cents  per  hour 
in  cities  of  over  500,000  population  or  their  metropolitan  districts, 
nor  less  than  at  the  rate  of  38%  cents  per  hour  in  cities  having  less 
than  500,000  population  but  more  than  250,000  population  or  their 
metropolitan  districts,  or  less  than  at  the  rate  of  37yo  cents  per 
hour  in  cities,  towns,  villages,  or  other  places  with  less  than  250.000 
population  or  their  metropolitan  districts. 

3.  Female  Employees. — No  female  employee  not  otherwise  pro- 
vided for  in  this  Article  shall  be  paid  at  less  than  the  rate  of  35  cents 
per  hour  in  cities  of  over  500,000  population  or  their  metropolitan 
districts,  or  less  than  at  the  rate  of  33%  cents  per  hour  in  cities 
having  less  than  500,000  but  more  than  250,000  population  or  their 
metropolitan  districts,  or  less  than  at  the  rate  of  32i4>  cents  ])er 
hour  in  cities,  towns,  villages,  or  other  places  with  less  than  250,000 
population  or  their  metropolitan  districts. 

Female  employees  performing  substantially  the  same  work  as 
male  employees  shall  receive  the  same  rate  of  pay  as  male  employees. 

4.  Apprentices. — No  apprentice  shall  be  paid  at  less  than  80%  of 
the  applicable  hourly  rate  set  forth  in  this  Article.  The  period  of 
apprenticeship  shall  be  limited  to  30  working  days  after  entering 
the  employment  of  an  employer.  No  more  than  5%  of  any  em- 
ployer's total  employees  may  be  classed  as  apprentices. 

5.  Physically  Handicapped. — 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  authorit}^  desig- 
nated b}"  the  United  States  Department  of  Labor  a  certificate  au- 
thorizing his  employment  at  such  wages  and  under  such  hours  as 
shall  be  stated  in  the  certificate.  Each  employer  shall  file  with  the 
Code  Authority  Committee  a  list  of  all  such  persons  employed  by 
him. 

6.  Pi^ceioork  Compensation — Minimum  Wages. — This  Article 
establishes  a  minimum  rate  of  pay  which  shall  apply,  in-espective  of 
whether  an  employee  is  actually  compensated  on  a  time  rate,  piece- 
work, or  other  basis. 


618 

Article  V — General  Labor  Provisions 

1.  Child  Labor. — No  person  under  16  j^ears  of  age  shall  be  em- 
ployed in  the  Industry.  No  person  under  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  haA^e  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  emploj'ment  or  age  certificates  or  permits 
showing  that  the  employee  is  of  the  required  age. 

2.  P?'ovisions  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  thru  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  pui-pose 
of  collective  bargaining  or  other  mutual  aid  or  protection. 

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

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

3.  Reclassification  of  Employees. — No  employer  shall  reclassify 
employees  or  duties  or  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. 

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. 

5.  State  Laws. — Within  each  State  no  provision  in  this  Code  shall 
supersede  a  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. 

6.  Posting. — All  employers  shall  post  complete  copies  of  this  Code 
in  conspicuous  places  accessible  to  employees. 

7.  Posting  of  Hours  Worked. — All  employers  shall  post  at  the 
end  of  each  4-week  period  in  a  conspicuous  place  or  places  available 
to  all  employees  a  schedule  stating  for  each  employee  (except  office 
employees  and  outside  salesmen) — 

(a)  The  Hours  worked  in  each  of  the  preceding  4  weeks. 

(b)  The  cumulative  average  of  hours  worked  from  the  next  pre- 
ceding Januar}!^  1st  or  July  1st. 

Article  VI — Administrative  Provisions 

1.  A  Code  Authority  is  hereby  constituted  to  administer  this  Code. 
Organization: — The  Code  Authority  shall  consist  of  six  or  more 
members  selected  in  the  following  manner : 


619 

(a)  Two  members  shall  be  elected  by  lliDse  Members  of  the  In- 
tlustry  whose  annual  sales  are  less  than  $1,00U,00(). 

(b)  Three  members  shall  be  elected  by  tho.se  Members  of  the 
Industry  whose  annual  sales  exceed  $1,000,000. 

(c)  The  Secretary  of  the  Association  shall  be  a  member  ex-officio, 

(d)  The  Administrator,  in  his  discretion,  may  a})point  additional 
meiiibers  without  vote  to  represent  such  groups  or  governmental 
agencies  as  he  mav  designate.  Such  members  shall  serve  without 
expense  to  the  Association. 

2.  Each  elective  member  of  the  Code  Authority  shall  be  a  Member 
of  the  Industry,  or  an  officer  or  executive  who  is  an  accredited  dele- 
gate of  a  Member  of  the  Industry,  and,  except  as  provided  below  in 
this  paragraph,  shall  serve  for  one  3^ear  or  for  the  remaining  dura- 
tion of  the  Act,  whichever  is  shorter.  Upon  the  expiration  of  the 
term  or  the  resignation  of  a  member  of  the  Code  Authority  or  upon 
the  termination  of  association  with  the  employer  of  whom  a  member 
of  the  Code  Authority  was  a  delegate  at  the  time  of  his  election,  or 
upon  the  vacancy  in  any  membership  on  the  Code  Authority  caused 
by  a  member's  severance  from  the  industry  or  unwillingness  or 
inability  to  act,  or  death,  or  otherwise,  a  successor  member  of  the 
Code  Authority  shall  be  elected  by  those  members  of  the  industry, 
or  the  survivors  of  them,  who  elected  his  predecessor.  Any  suc- 
cessor member  so  elected  shall  serve  for  one  year  or  for  the  remaining 
duration  of  the  Act,  whichever  is  shorter,  unless  said  term  be  ter- 
minated prior  thereto  for  any  of  the  reasons  given  above  for  the  ter- 
mination of  a  member's  term  of  office. 

3.  The  method  of  election  of  the  members  of  the  Code  Authority 
shall  be  as  follows: 

(a)  Each  member  of  the  industry  shall  have  one  vote,  and  shall 
be  termed  hereinafter  as  an  elector. 

(b)  All  electors  included  in  Section  2  (a)  of  article  VI  shall 
belong  to  Group  #1.     All  other  electors  shall  belong  to  Group  :#:2. 

(c)  Nominations  and  elections  shall  take  place  under  the  auspices 
of  the  Secretary  of  the  National  Association  of  Chewing  tSrum 
Manufacturers. 

(d)  Each  elector  in  a  group  from  which  a  vacancy  is  to  be  filled 
may  nominate  a  sufficient  number  of  eligible  individuals  to  fill 
whatever  vacancy  or  vacancies  exist.  Ten  (10)  days  after  the 
Secretary  has  notified  electors  of  an  election  and  that  nominations 
are  in  order,  he  shall  tally  all  nominations  received.  Those  indi- 
viduals receiving  the  greatest  number  of  nominations  shall  be  the 
nominees,  and  there  shall  be  twice  as  manj^  nominees  as  there  are 
vacancies  to  be  filled. 

(e)  Within  two  (2)  days  after  the  tallying  of  nominations  the 
Secretary  shall  mail  ballots  to  each  elector,  listing  the  nominees, 
nominated  by  the  group  to  whicli  such  elector  belongs.  Each  elector 
may  vote  for  a  sufficient  number  of  nominees  on  the  ballot  received, 
to  fill  existing  vacancies.  Ten  (10)  days  after  mailing  of  ballots 
the  Secretary  shall  tally  all  ballots  received  from  electors.  The 
nominee  or  nominees,  respectively,  receiving  the  highest  number 
of  votes  shall  be  elected  to  fill  a  vacancy  or  vacancies.    Within  two 


620 

(2)  days  after  the  tallying  of  votes  the  Secretary  shall  mail  written 
notification  to  all  electors  setting  forth  the  result  of  the  election. 

(f )  The  Secretary  shall  call  for  nominations — 

(1)  Within  three  (3^  days  after  the  approval  of  the  Code. 

(2)  Not  later  than  thirty  (30)  da,ys  prior  to  the  expiration 

of  term  of  any  member  of  the  Code  Authority. 

(3)  Within  tlirei'  (3)  days  after  having  received  notice  of 

any  vacancy. 

(g)  Until  such"  time  as  an  election  as  hereinbefore  provided  for 
shall  have  taken  place,  the  members  of  the  Committee  submitting 
this  Code  shall  serve  as  the  Industry  representatives  on  the  Code 
Authorit3^ 

4.  Eacii  trade  association  directly  or  indirectly  participating  in 
the  selection  or  activities  of  the  Code  Authority  or  agencies  thereof 
shall  (1)  impose  no  inequitable  restrictions  on  membership,  and 
(2)  submit  to  the  Administrator  true  copies  of  its  articles  of  associ- 
ation, bylaws,  regulations,  and  any  amendments  when  made  thereto, 
together  with  such  other  information  as  to  membership,  organiza- 
tion, and  activities  as  the  Administrator  may  deem  necessary  to 
effectuate  the  purposes  of  the  Act. 

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  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  Avith  the  provisions  of  the  Act,  may  require  an  ap- 
propriate modification  in  the  method  of  selection  of  the  Code 
Authorit3^ 

G.  Members  of  the  Industry  shall  be  entitled  to  make  use  of  the 
insignia  approved  by  the  Administrator  for  the  Chewing  Gum  In- 
dustry and  to  participate  in  and  share  the  benefits  of  the  activities 
of  the  Code  Authority  and  to  participate  in  the  selection  of  the  mem- 
bers thereof  by  assenting  to  and  complj'ing  with  the  requirements  of 
this  Code  and  sustaining  their  reasonable  share  of  the  expenses  of 
its  administration  either  by  becoming  a  member  of  the  Association 
or  by  paying  to  the  Association  an  amount  equal  to  the  dues  from 
time  to  time  provided  to  be  paid  by  a  member  in  like  situation  of  the 
Association.  The  amount  of  any  such  payment  or  payments  shall  be 
subject  to  review  and  approval  by  the  Administrator. 

7.  Nothing  contained  in  this  Code  shall  constitute  the  members  of 
the  Code  Authority  partners  for  any  purpose.  Nor  shall  any  mem- 
ber of  the  Code  Authority  be  liable  in  an}^  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. 

8.  Poicers  and  Duties. — The  Code  Authority  shall  have  the  follow- 
ing further  powers  and  duties,  to  the  extent  permitted  by  the  Act: 

(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. 


621 

(b)  To  adopt  bylaws  and  rules  and  re<;ulati()ns  for  its  procedure 
and  for  the  adniinistration  and  enforcement  of  the  Code. 

(c)  To  designate  a  Confidential  Agency  who  shall  be  a  Certified 
Public  Accountant  not  regularly  eniplo3^ed  as  auditor  or  otherwise 
by  any  member  of  the  industry.  The  Code  Authority  shall  effectuate 
the  collection  by  the  Confidential  Agency  from  Members  of  the  In- 
dustry of  such  information  and  reports  as  are  required  for  the  ad- 
ministration of  the  Code,  inclusive  of  such  information  and  reports 
as  the  Administrator  may  deem  necessary  for  the  purposes  recited 
in  Section  3  (a)  of  the  Act,  and  which  information  and  reports  shall 
also  be  submitted  by  Members  of  the  Industrj^  to  such  administrative 
and/or  government  agencies  as  the  Administrator  may  designate; 
provided  that  nothing  in  tliis  Code  shall  relieve  any  Member  of  the 
Industry  of  any  existing  obligations  to  furnish  reports  to  any  gov- 
ernment agency.  No  individual  reports  of  any  Member  of  the  Indus- 
try other  than  information  required  by  the  Administrator  and  other 
than  information  with  respect  to  violations  of  this  Code  shall  be  dis- 
closed by  the  Confidential  Agency  to  any  other  Member  of  the  Indus- 
try or  to  any  other  painty  except  with  the  permission  of  the  Code 
Authority  and  with  the  permission  of  the  Member  of  the  Industry 
furnishing  such  information.  The  Code  Authority  shall  obtain  from 
the  Confidential  Agency  and  disseminate  among  Members  of  the  In- 
dustry such  summaries  of  information  collected  as  per  this  para- 
graph which  the  Code  Authority  deems  vital  and  pertinent  to  the 
Industry. 

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

(e)  To  make  recommendations  to  the  Administrator  for  the  coor- 
dination of  the  administration  of  this  Code  with  such  other  codes, 
if  any,  as  may  be  related  to  the  Industry,  whenever  such  recommen- 
dations, in  the  discretion  of  the  Code  Authority,  appear  desirable. 

(f)  To  cooperate  with  the  Administrator  in  regulating  the  use  of 
an}'  NRA  insignia  solely  by  those  Members  of  the  Industry  who 
have  assented  to,  and  are  complying  with  this  Code. 

(g)  To  recommend  to  the  Administrator,  whenever  the  Code  Au- 
thority considers  such  recommendations  desirable,  further  fair  trade 
practice  provisions  to  govern  Members  of  the  Industry  in  tlieir  rela- 
tions with  each  other  or  with  other  industries  and  to  recommend  to 
the  Administrator,  whenever  the  Code  Authority  considers  such 
recommendations  desirable,  measures  for  industrial  planning,  in- 
cluding stabilization  of  employment,  and  upon  approval  by  the 
Administrator  after  such  notice  and  hearing  as  he  may  deem  neces- 
sary, such  recommendations  shall  become  effective  as  part  of  this 
Code. 

9.  The  Chairman  of  the  Code  Authority  shall  be  the  Secretary  of 
the  Association.  In  the  absence  of  the  Chairman,  or  in  his  inability 
or  unwillingness  to  act,  the  Code  Authority  shall  select  an  acting 
Chairman  who  shall  then  have  the  full  powders  of  the  Chairman. 


622 

10.  If  the  Administrator  shall  determine  that  any  action  of  a 
Code  Authority  or  any  agency  thereof  is  unfair  or  unjust  or  con- 
trary 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  inyestigation  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. 

Article  VII — Trade  Practices 

1.  Established  Plaices. —  (a)  Each  member  of  the  Industry,  except 
for  branded  chewing  gum  sold  thru  coin-operated  vending  machines 
and  except  for  the  original  sale  of  chewing  gum  not  identified  by 
the  manufacturer's  brand  or  name,  shall  establish  a  price  and  sales 
terms  for  each  of  his  products ;  such  prices  and  terms  shall  be  estab- 
lished thru  lists  filed  with  the  Confidential  Agency,  and  list  of  prices 
and  sales  terms  established  by  each  Member  of  the  Industiy  shall 
be  so  filed  not  later  than  ten  (10)  days  after  the  approval  of  the 
Code  by  the  President  and  shall  become  effective  ten  (10)  daj's  after 
the  date  of  such  filing. 

(b)  Any  Memljer  of  the  Industry  may  amend  the  list  or  make  a 
substitution  thereof  at  any  time  and  such  amendments  and  substitu- 
tions shall  become  effective  three  (3)  days  after  filing  with  the  Con- 
fidential Agency. 

(c)  The  Code  Authority  may  prescribe  rules  for  the  publication  of 
such  prices  and  sales  terms. 

(d)  No  Member  of  the  Industry  shall  sell  or  offer  to  sell  any  prod- 
uct at  prices  or  sales  terms  other  than  those  filed  with  the  Confiden- 
tial Agency  as  above  provided.^ 

2.  Adverth-ing  or  Distribution  AUovjances. — A  Member  of  the  In- 
dustry may  pay  or  allow  a  credit  to  a  trade  buyer  thru  a  special  ad- 
vertising or  distribution  allowance  for  definite  advertising  or  distri- 
bution services  provided  that — 

(a)  Such  services  are  performed  in  pursuance  of  a  written  con- 
tract made  in  good  faith  explicitly  defining  the  service  and  the 
payment  for  it. 

(b)  Such  services  are  duly  rendered  and  such  payment  is  reason- 
able and  not  excessive  in  amount. 

Copies  of  all  contracts  of  each  Member  of  the  Industry  as  to  serv- 
ice, distribution,  or  advertising  allowances  and/or  payments  to  trade 
buyers  shall  be  filed  with  the  Confidential  Agency  for  such  review 
and  audit  as  maj-  be  prescribed  by  the  Code  Authority. 

3.  Sales  Below  Cost. — No  member  of  the  Industry  shall  offer  or 
sell  a  product  below  its  cost  to  him  without  a  legitimate  business 
reason  justifying  such  action  and  which  shall  have  been  reported  to 
the  Confidential  Agency.  This  shall  not  applj^  to  any  sale  made  in 
closing  out  in  good  faith  a  Member  of  the  Industry's  stock  or  any 
part  thereof  for  the  purpose  of  discontinuing  his  trade  in  any  stock 
or  commodity  or  in  disposing  of  seasonal  or  damaged  goods  or  mer- 
chandise requiring  immediate  movement  in  consumption  to  prevent 
loss. 


^  See  paragraph  2  of  order  approving  this  Code. 


623 

Subject  to  the  approval  of  the  Administrator  ami  the  Code  Au- 
thority, the  Confidential  Agency  shall  prescribe  and  receive  reports 
necessary  in  the  determination  of  fair  practice  as  to  costs. 

4.  Gooiisi  on  Consic/nment. — Except  to  the  extent  necessary  to 
carry  out  arrangements  existing  on  the  effective  date  of  the  Code 
and  which  shall  have  been  reported  to  tlie  Code  Authority,  from 
and  after  such  date,  no  Member  of  the  Industry  shall  deliver  prod- 
ucts on  consignment. 

All  arrangements  for  the  delivery  by  any  Member  of  the  Indus- 
try, of  products  on  consignment  existing  on  the  effective  date  of 
the  Code  shall  be  terminated  on  or  before  six  months  thereafter,  and 
all  stock  held  on  consignment  on  that  date  shall  either  be  sold  to  the 
consignee  or  possession  thereof  shall  be  taken  by  the  consignor. 

5.  Cash  Discount. — No  Member  of  the  Industry  shall  allow  a  cash 
discount  in  excess  of  2%  for  prompt  payment  of  its  invoices. 

6.  Credit  for  Competitors'  Goods. — Xo  Member  of  the  Industry 
shall  give  credit  or  replacement  for  an}'  product  produced  b}'  a  com- 
petitor. 

7.  Misdating  Invoices. — Xo  ^Member  of  the  Industry  shall  state  in 
the  invoice  of  an}^  product  as  the  date  thereof  a  date  later  than  the 
date  of  shipment  of  such  product,  or  include  in  any  invoice  any  prod- 
uct shipped  on  a  date  earlier  than  the  date  of  such  invoice. 

8.  Guaranteed  Sales. — No  Member  of  the  Industry  shall  guarantee 
the  sale  of  his  product  by  the  purchaser  thereof. 

9.  Unauthorised  Suhstitntion. — No  Member  of  the  Industr}'  manu- 
facturing chewing  gum  which  is  in  accordance  with  a  written  agree- 
ment to  be  manufactured  according  to  a  specified  formula  shall  use 
or  substitute  any  material  different  in  quality  to  that  so  specified. 

Article  VIII — Export  Trade 

None  of  the  provisions  of  Article  VII  of  this  Code  shall  apply  to 
sales  in  export  trade  outside  the  United  States. 

Article  IX — jSIodificatiox 

1.  This  Code  and  all  the  provisions  thereof  are  expressly  made 
subject  to  the  right  of  the  President,  in  accordance  with  the  pro\T- 
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,  may  be 
modified  on  the  basis  of  experience  or  changes  in  circumstances,  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  Administrator. 

Article  X — Monopolies,  Etc. 

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. 


624 

Article  XI — Price  Increases 

Whereas  the  policy  of  the  Act  to  increase  real  purchasing  power 
will  be  made  more  difficult  of  consummation  if  prices  of  goods  and 
services  increase  as  rapidly  as  wages,  it  is  recognized  that  price  in- 
creases except  such  as  may  be  required  to  meet  individual  cost 
should  be  delayed,  but  when  made  such  increases  should,  so  far  as 
possible,  be  limited  to  actual  additional  increases  in  the  seller's  costs. 

Article  XII — Effective  Date 

1.  This  Code  shall  become  eflfective  not  later  than  ten  (10)  days 
after  date. 

2,  The  expiration  date  of  this  Code  shall  be  the  expiration  date 
of  the  Act  or  the  earliest  date  prior  thereto  on  which  the  President 
ghall  by  proclamation  or  the  Congress  shall  by  joint  resolution  de- 
clare that  the  emergency  recognized  by  the  Act  has  ended. 


Approved  Code  No.  241, 
Registry  No.  109-1-01. 


o 


Approved  Code  No.  242 
CODE  OF  FAIR  COMPETITION 

FOR  THE 

MARINE  AUXILIARY  MACHINERY  INDUSTRY 

As  Approved  on  January  30,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

MARINE  AUXILIARY  MACHINERY  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  Marine  Auxiliary  Machinery  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: 

NOAV,  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,  dat^d  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, 
AduiinistratoT  for  Industi^ial  Recovery. 
Approval  recommended : 
]Malcoi.m  Muir, 

Divisi&n  Administrator. 
Washington,  D.C, 

Janvury  30^  1934.. 

36706° 313-156 34  (0,25) 


The  President, 

The  White  Hoiise. 

Sir:  This  is  a  report  on  the  Code  of  Fair  Competition  for  the 
Marine  Auxiliary  Machinery  Industry  of  the  United  States,  con- 
ducted in  Washington  on  the  27th  of  November  1933,  in  accordance 
with  the  provisions  of  the  National  Industrial  Recovery  Act. 

PROVISIONS  OF  THIS  CODE  AS  TO  WAGES  AND  HOURS 

Maximum  hours  for  employees  are  established  as  follows :  All  em- 
ployees, except  executive,  administrative,  supervisory,  and  technical 
employees  who  are  paid  at  the  rate  of  $35.00  or  more  per  week,  and 
traveling  salesmen  and  service  employees — 40  hours  per  week,  or  8 
hours  in  any  one  24-hour  period.  Watchmen  and  firemen — 48  houi-s 
per  we^k.  These  maximum  hour  provisions  do  not  apply  to  any 
emergency  condition  which  cannot  be  adequately  met  by  hiring  addi- 
tional employees,  but  in  all  such  cases  at  least  one  and  one  half  his 
regular  rate  shall  be  paid  to  each  employee  for  all  time  work  on 
Sundays  and  legal  holidays,  or  beyond  the  regular  8  hours  per  day 
or  40  hours  per  Aveek  maximum  as  stipulated  above. 

Minimum  wages  for  employees  are  established  as  follows :  All  em- 
ployees, except  learners,  engaged  in  production  and  in  labor  opera- 
tions directly  incident  thereto — 40  cents  per  hour.  Learners,  other 
than  apprentices — 80%  of  such  minimum  hourly  wage,  the  number 
of  learners  of  any  employer  not  to  exceed  5%  of  the  total  number  of 
employees  covered  by  such  minimum  hourly  wage.  All  other  em- 
ployees, except  office  boys  and  girls  and  those  whose  earning  capacity 
is  limited  because  of  age  or  physical  or  mental  handicap — $15.00  per 
Aveek.  Office  boys  and  girls — 80%  of  such  minimum  weekly  wage, 
the  number  of  such  office  boys  and  girls  of  any  employer  not  to  exceed 
5%  of  the  total  number  of  employees  c<^)vered  by  such  minimum 
weekly  wage.  Incapacitated  employees  may  be  paid  less  than  the 
established  minimum  hourly  wage  based  on  provisions  of  certificate 
obtained  from  state  authority  designated  by  the  U.S.  Department 
of  Labor. 

Employment  of  any  person  under  16  years  of  age  and  anyone 
under  18  years  of  age  at  occupations  hazardous  in  nature  or  danger- 
ous to  health  is  prohibited. 

The  right  of  employees  to  organize  and  bargain  collectiA'ely 
through  representatives  of  their  own  choosing  is  recognized.  No 
employee  shall  be  required  as  a  condition  of  employment  to  join 
any  company  union,  or  to  refrain  from  joining,  organizing,  or  assist- 
ing a  labor  organization  of  liis  own  choosing. 

ECONOMIC  EFFECT  OF  THE  CODE  ' 

The  Marine  Aiixiliar}^  Machinery  Industry  ranks  among  those 
industries  experiencing  the  greatest  loss  of  business  due  to  the 
depression,  the  annual  sales  of  the  industry  falling  from  $3,500,000 

(G26) 


627 

in  1929  to  $1,000,000  in  1932  and  1933,  a  decline  of  71%  from  the 
1929-1930  peak;  and  employment  declining  from  1,200  in  1929  to  500 
in  June  1933,  a  decrease  of  58%.  The  average  hours  actuall}^  worked 
per  week  declined  from  49.5  in  1929  to  45.5  in  July  1933,  a  decrease 
of  8.1%.  It  is  estimated  that  more  than  half  the  employees  were 
working  35  hours  or  less  during  the  week  of  October  21,  1933.  The 
average  weekly  earnings  for  June  1933,  were  $19.24  and  for  October 
1933  they  Ave  re  $22.88,  representing  an  increase  of  approximately 
19%.        \ 

It  is  believed  that  the  provisions  in  this  Code  permit  adequate 
control  and  at  the  same  time  insure  development  and  sound 
expansion. 

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)  Snid  Code  is  well  designed  to  promote  the  policies  and  pur- 
poses of  Title  I  of  the  National  Industrial  Recovery  Act,  includingt 
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  competitve  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  50,000  em- 
plo^'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  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, 
January  30, 1934.  ,  Administrator. 


CODE  OF  FAIR  COMPETITION 
FOR  THE 

MARINE  AUXILIARY  MACHINERY  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  Marine  Auxiliary  Machinery  Industry  and 
upon  approval  by  the  President  shall  be  the  Standard  of  Fair  Com- 
petition for  such  Industry  and  shall  be  binding  upon  every  member 
thereof. 

Article  II — Definitions 

The  term  "  Marine  Auxiliary  Machinery  Industry  "  as  used  herein 
includes  the  manufacture  for  sale  of  machinery  of  the  classes  of 
steering  gears,  windlasses,  warping  and  cargo  handling  machinery, 
towing  machinerj^,  airplane  and  boat  cranes,  and  all  other  marine 
deck  machinery. 

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  Industi'y  as  above  defined  either  as  an  employer  or  on  his 
behalf. 

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

The  term  "Code  Authority"  as  used  herein  means  the  body  pro- 
vided for  in  Article  VI  of  this  Code. 

The  term  "  effective  date "  as  used  herein  means  the  tenth  day 
after  the  Code  is  approved  by  the  President. 

The  term  "  learner  "  means  an  employee  without  previous  experi- 
ence on  the  class  of  work  for  which  he  is  engaged,  being  trained  to 
become  competent  on  one  or  more  machine  operations  but  who  shall 
not  be  so  classified  after  ninety  (90)  days'  experience. 

Article  III — Hours 

1.  No  employee  except  executive,  administrative,  supervisory,  and 
technical  employees  who  are  paid  at  the  rate  of  $35.00  or  more  per 

(628) 


629 

week,  traveling  salesmen  and  outside  service  employees,  shall  be 
permitted  to  work  in  excess  of  forty  (40)  hours  in  any  one  week,  or 
eight  (8)  hours  in  any  one  twenty-four-hour  period. 

2.  No  watchmen  or  firemen  shall  be  permitted  to  work  in  excess 
of  forty-eight  (48)  hours  per  week. 

3.  The  maximum  hours  fixed  in  Section  1  of  this  Article  shall 
not  apply  to  any  employee  engaged  in  repair  or  break-down,  or  the 
protection  of  life  and  property,  or  any  emergency  condition  which 
can  not  be  adequately  met  by  hiring  additional  employees,  provided 
that  in  all  such  cases  at  least  one  and  one-half  his  regular  rate  shall 
be  paid  to  each  employee  for  all  time  worked  on  Sundays  and  legal 
holidays,  or  beyond  the  regular  eight  (8)  hour  per  day  or  forty 
(40)  hour  per  week  maximum  stipulated  in  Section  1  of  this  Article. 
No  employer  shall  knowingly  engage  an  employee  for  a  time  which 
totaled  with  that  already  performed  with  another  employer  or  em- 
ployers exceeds  the  maxinumi  permitted  herein. 

Article  IV — Wages 

1.  The  minimum  wage  that  shall  be  paid  by  any  employer  to 
an}'  employee  engaged  in  production  and  in  labor  operations  di- 
rectly incident  thereto  shall  be  not  less  than  400  per  hour ;  provided, 
however,  that  learners  (other  than  apprentices  as  defined  in  Sec- 
tion 4  of  this  Article)  may  be  paid  not  less  than  80%  of  such  mini- 
mum wage,  but  the  total  number  of  learners  employed  by  any 
employer  shall  not  exceed  5%  of  the  total  number  of  employees 
employed  by  such  employer  covered  b}^  the  provision  of  this  Section 
1,  and  provided  further  that  after  three  months  of  work  in  this 
Industry  learners  shall  be  paid  not  less  than  the  minimum  wage 
herein  provided, 

2.  A  person  whose  earning  capacity  is  limited  because  of  age  or 
physical  or  mental  handicap,  may  be  paid  at  a  rate  not  less  than  80% 
of  the  minimum  established  by  Sections  1  and  3  of  this  Article,  if  the 
employer  obtains  from  the  state  authority  designated  by  the  U.S. 
Department  of  Labor,  a  certificate  authorizing  his  employment  at 
such  wages  and  for  such  hours  as  shall  he  stated  in  this  certificate. 
Each  employer  shall  file  with  the  Code  Authority  a  list  of  all  such 
persons  employed  by  him,  which  number  of  persons  shall  not  exceed 
6%  of  the  total  number  of  employees  employed  by  such  employer. 

3.  The  minimum  wage  that  shall  be  paid  by  an  employer  to  all  em- 
ployees other  than  those  described  in  Sections  1  and  2,  Article  IV, 
shall  be  at  the  rate  of  $15.00  per  week  whether  calculated  on  an 
hourly,  weekly,  monthly,  piecework,  or  any  other  basis  in  accord- 
ance with  the  usual  custom  of  the  employer ;  provided,  however,  that 
office  boys  or  girls  may  be  paid  at  not  less  than  80%  of  such  minimum 
wage  rate,  but  the  total  number  of  such  office  boys  or  girls  employed 
by  any  employer  shall  not  exceed  5%  of  the  total  number  of  em- 
pio3^ees  employed  by  such  employer  covered  by  the  provisions  of 
this  section. 

4.  Subject  to  the  right  of  the  Administrator  upon  review  to  dis- 
a])prove  any  such  system  or  course  of  training,  nothing  in  this 
Article  IV  shall  apply  to  or  effect  a  bona  fide  apprentice  employed 


G30 

under  a  system  or  course  of  training  and  which  when  completed  will 
make  the  apprentice  a  skilled  mechanic.  Provided  the  total  number 
of  apprentices  shall  not  exceed  one  apprentice  to  each  five  qualified 
skilled  mechanics  in  the  particular  trade  or  occupation  for  which 
such  apprentice  is  being  trained.  These  apprentices  shall  be  paid  not 
less  than  80%  of  the  minimum  wage  per  Article  IV,  Section  1,  and 
for  a  period  not  to  exceed  two  years  from  date  of  employment. 

5.  Not  later  than  ninety  days  after  the  effective  date  of  this  Code 
each  emplo^^er  shall  report  to  the  Administrator  through  the  Code 
Authority  the  action  taken  by  such  employer  in  adjusting  wage 
rates  for  all  employees  receiving  more  than  the  minimum  wages 
provided  in  Sections  1  and  3  of  this  Article  IV,  except  executive, 
administrative,  supervisory,  and  technical  emploj-^ees  receiving  $35.00 
a  week  or  more,  and  salesmen. 

6.  This  Article  establishes  a  minimum  compensation,  irrespective 
of  whether  an  employee  is  actually  compensated  on  a  time  rate,  piece- 
work, or  other  basis. 

Article  V — Gexer.\l  Labor  Provisions 

1.  No  person  under  sixteen  years  of  age  shall  be  employed  in  the 
Industry,  nor  anyone  under  eighteen  years  of  age  at  operations  or 
occupations  hazardous  in  nature  or  detrimental  to  health.  The 
Code  Authority  shall  submit  to  the  Administrator  within  ninety 
days  from  date  of  approval  of  Code  a  list  of  such  operations  and 
occupations.  In  any  state  an  employer  shall  be  deemed  to  have  com- 
plied with  this  provision  if  he  shall  have  on  file  a  certificate  or 
permit  duly  issued  b}'  the  authorit}'  in  such  state  empowered  to  issue 
emploj'ment  or  age  cerLificatcs  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  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  rates  of  pay,  and  other  conditions  of  employment  approved 
or  prescribed  by  the  President. 

5.  Within  each  state  this  Code  shall  not  supersede  any  laws  of 
such  state  imposing  more  stringent  requirements  on  employer  reg- 
ulating 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  as  to  defeat  the  purposes  of  the  Act. 

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


631 

8.  Labor  agreements  now  in  force  between  members  of  the  In- 
dubtry  and  their  employees  shall  be  affected  only  by  such  provisions 
in  this  Code  as  may  prescribe  higher  wages  and  shorter  hours  than 
are  provided  for  in  such  agreements. 

Article  YI — Administration 

To  further  effectuate  the  policies  of  the  Act,  a  Code  Authority 
is  hereb}"  constituted  to  administer  this  Code ;  all  acts  of  said  Code 
Authority  are  subject  to  the  disapproval  of  the  Administrator. 

1.  Organization  and  constitution  of  Code  Authority. 

(a)  The  Code  Authority  shall  consist  of  not  more  than  six  indi- 
viduals, five  of  whom  shall  be  elected  from  among  the  members, 
or  officers  of  members  of  the  Marine  Auxiliarj'^  Machinery  ISIanu- 
f acturers  Association,  and  one  of  whom  shall  be  elected  from  among 
the  noimiembers  or  officers  of  nonmembers  of  said  association,  if 
tliere  be  such  nonmembers. 

Each  member  of  the  Industry  who  has  conformed  with  the  pro- 
visions for  participation  established  in  Section  3  of  this  Article  VI 
shall  have  equal  vote  in  electing  the  members  of  the  Code  Authority. 
The  Administrator  may,  at  his  discretion,  appoint  not  to  exceed  one 
additional  member  without  vote. 

(b)  The  Marine  Auxiliary  Machinery  Manufacturers  Association 
shall  impose  no  inequitable  restriction  on  membership  and  shall  sub- 
mit to  the  Administrator  true  copies  of  its  articles  of  association, 
bylaws,  regulations,  and  any  amendments  when  made  thereto. 

(c)  The  Code  Authority  shall  elect  its  officers  and  engage  such 
agencies  and  assign  to  each  such  duties  as  it  may  deem  advisable 
subject  to  review  by  the  Administrator.  The  Code  Authority  shall 
provide  its  own  rules  of  procedure  and  shall  have  full  power  and 
authority  for  the  administration  of  this  Code  to  the  extent  per- 
mitted by  the  Act  and  provided  by  the  Code. 

2.  (a)  The  Code  Authority  may,  from  time  to  time,  present  to  the 
Administrator  recommendations  laased  on  conditions  in  this  Industry 
as  they  may  develop  which  ^^■ill  tend  to  effectuate  the  purposes  of  this 
Code. 

(b)  The  Code  Authority  shall  conduct  investigations  as  to  the 
functioning  and  observance  of  any  provisions  of  this  Code  at  its 
own  inbtance  or  upon  complaint  by  any  person  to  the  extent  per- 
mitted by  the  Act. 

(c)  Members  of  the  Industry  shall  file  with  the  Code  Authority 
at  such  time  and  in  such  maimer  as  may  be  prescribed,  statistics 
covering  number  of  employees,  wage  rates,  employee  earnings,  hours 
of  work,  and  such  other  data  as  may  be  required  for  the  administra- 
tion of  this  Code. 

3.  Any  member  of  the  Industry  shall  be  entitled  to  participate  in 
and  share  the  benefits  of  the  activities  of  the  Code  Authority  and 
to  particijoate  in  the  selection  of  the  members  thereof  by  assenting 
to  and  complying  with  the  requirements  of  the  Code  and  sustaining 
his  reasonable  share  of  the  exjjenses  of  administration.  The  said 
reasonable  share  of  tlie  expense  of  the  administration  shall  be  deter- 
mined by  the  Code  Authority,  subject  to  review  by  the  Adininistra- 


632 

tor,  on  the  basis  of  volume  of  business  and  such  other  factors  as 
may  be  deemed  equitable  to  be  taken  into  consideration. 

4.  In  addition  to  the  information  required  to  be  submitted  to  the 
Code  Authority,  there  shall  be  furnished  to  GoA^ernment  agencies 
such  statistical  information  as  the  Administrator  may  deem  neces- 
sary for  the  purposes  recited  in  Section  3  (a)  of  the  Act. 

Article  VII — Trade  Practices 

The  following  practices  are  declared  to  be  unfair  methods  of 
competition  and  are  prohibited : 

1.  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  service. 

2.  The  publishing  or  circulating  of  threats  or  suits  for  infringe- 
ment of  patents,  or  trade  marks,  or  of  any  other  legal  proceedings 
not  in  good  faith,  with  the  tendency  or  effect  of  harassing  com- 
petitors or  intimidating  their,  customers. 

3.  Securing  confidential  information  concerning  the  business  of  a 
competitor  by  a  false  or  misleading  statement,  or  representation  by 
a  false  impersonation  of  one  in  authority,  by  bribery,  or  by  any 
other  unfair  method. 

4.  The  secret  payment  or  allowance  of  rebates,  refunds,  commis- 
sions, credits,  or  unearned  discounts,  whether  in  the  form  of  money 
or  otherwise,  or  the  secret  extension  to  certain  purchasers  of  special 
service,  or  privileges  not  extended  to  all  purchasers  on  like  terms 
and  conditions. 

5.  Extending  guarantees  other  than  those  due  to  defective  mate- 
rial or  inferior  workmanship,  which  guarantees  in  such  excepted 
cases  shall  not  cover  a  greater  period  than  one  year  after  date  of 
installation. 

6.  The  making,  or  causing,  or  knowingly  permitting  to  be  made, 
or  publishing  any  false,  materially  inaccurate,  or  deceptive  state- 
ment 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  otherwise,  having  the  tendency  or  capacity  to  mislead 
or  deceive  customers  or  prospective  customers. 

7.  Directly  or  indirectly  giving  or  permitting  to  be  given  or  offer- 
ing 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  prospec- 
tive customers,  without  knowledge  of  their  employers  or  principals 
as  an  inducement  to  influence  their  emplo3^ers  or  principals  to  pur- 
chase or  contract  to  purchase  from  the  makers  of  such  gift  or  offer, 
or  to  influence  such  employers  or  principals  to  refrain  from  dealing 
or  contracting  to  deal  with  competitors.  This  provision  shall  not 
be  construed  to  prohibit  free  and  general  distribution  of  articles 
commonly  used  for  advertising  except  so  far  as  such  articles  are 
actually  used  for  commercial  bribery  as  hereinabove  defined. 


633 

8.  Selling  under  contracts  which  fail  to  specify  the  size  and  price 
of  the  machine  and  equipment  and  any  freight  allowances,  with 
terms  of  payment. 

9.  Nothing  in  this  Code  shall  limit  the  effect  of  any  adjudication 
by  the  Courts,  or  holding  by  the  Federal  Trade  Commission,  on  com- 
plaint, finding,  and  order  that  any  practice  or  method  is  unfair,  pro- 
viding that  such  an  adjudication  or  holding  is  not  inconsistent  with 
an}^  provision  of  the  Act  or  of  this  Code. 

Article  VIII — ^Modification 

1.  Such  of  the  provisions  of  this  Code  as  are  not  required  to  be 
included  therein  by  the  Act  may,  with  the  approval  of  the  President, 
be  modified  or  eliminated  as  changes  in  circumstances  or  experience 
ma}"  indicate.  It  is  contemplated  that  from  time  to  time,  supple- 
mentary provisions  to  this  Code  or  additional  Codes  will  be  submitted 
for  the  approval  of  the  President  to  prevent  unfair  competition  in 
price  and  other  unfair  and  destructive  and  competitive  practices  and 
to  effect  the  other  purposes  and  policies  of  the  Act. 

2.  The  Code  Authority  shall,  from  time  to  time,  make  such  recom- 
mendations including  amendments  of  the  Code  as  in  its  judgment  will 
aid  the  effective  administration  of  this  Code  or  may  be  necessary  to 
effect  the  purpose  of  the  Act.  Such  amendments,  when  approved  by 
the  President,  shall  become  part  of  this  Code. 

3.  Violation  of  any  provision  of  this  Code  is  an  unfair  method  of 
competition  and  shall  come  within  the  scope  of  the  penalties  pre- 
scribed by  the  law. 

Article  IX — Statistics 

Except  as  otherwise  provided  in  the  Act  all  statistics,  data,  and  in- 
formation filed  in  accordance  with  the  provisions  of  Article  VI  shall 
be  confidential,  provided,  however,  that  nothing  herein  shall  pre- 
vent the  publication  of  general  summaries  of  such  statistics,  data,  and 
information.  The  statistics,  data,  and  information  of  one  employer 
shall  not  be  revealed  to  any  other  employer  except  that  for  the  pur- 
pose of  facilitating  the  administration  of  the  provisions  of  this  Code, 
the  Code  Authority,  by  its  duly  authorized  representatives  and  the 
Administrator,  shall  have  access  to  any  or  all  statistics,  data,  or  in- 
formation that  may  be  furnished  in  accordance  with  the  provisions 
of  this  Code. 

Article  X — x^ccgunting  and  Costing 

Every  member  of  the  Industry  shall  use  an  accounting  system 
which  conforms  to  the  principles  of  and  is  at  least  as  detailed  and 
complete  as  the  uniform  and  standard  method  of  accounting  and  the 
uniform  and  standard  method  of  costing  to  be  fornuilated  or  ap- 
proved by  the  Code  Authority  subject  to  the  right  of  the  Adminis- 
trator upon  review  to  approve  or  disapprove  such  method  of  ac- 
counting and  costing,  with  such  variations  therefrom  as  may  be 
required  by  the  individual  conditions  affecting  any  member  of  the 
Industry  and  as  may  be  approved  by  the  Code  Authority  subject 
to  the  right  of  the  Administrator  upon  review  to  approve  or  dis- 


634 

approve  such  method  of  accounting  and  costing,  and  made  supple- 
mentary to  said  formulated  or  approved  methods  of  accounting  and 
costing. 

Article  XI — Sales  Below  Cost 

(a)  No  member  of  the  Industry  shall  sell  or  exchange  any  prod- 
uct of  his  manufacture  at  a  price  or  upon  terms  or  conditions  that 
will  result  in  the  customer  paying  for  the  goods  received  less  than 
the  cost  to  the  seller  determined  in  accordance  with  the  uniform 
and  standard  method  of  costing  herein  above  described  in  Article 
X  with  the  following  exceptions: 

1.  Slow-moving  and/or  obsolete  stock  on  hand  on  June  16,  1933, 
which  must  be  sold  at  reduced  prices  to  be  moved.  Members  of  the 
Industry  shall  within  thirty  days  after  approval  of  Code  make  full 
report  of  such  stock  on  hand  to  the  Code  Authority,  and  shall  also 
report  all  sales  of  this  material  within  thirty  days  after  date  of  sale. 

2.  Obsolete  stock  not  on  hand  June  16, 1933,  subject  to  the  approval 
of  the  Code  Authority. 

(b)  Provided,  further,  that  the  Code  Authority,  upon  application 
to  it,  may  grant  permission  to  any  employer  in  the  industry  to  sell 
below  his  allowable  cost  in  order  to  meet  competitive  prices  filed  in 
accordance  with  the  provisions  of  Article  XI  of  this  Code  or  to 
meet  competition  on  products  of  equivalent  design,  character,  qual- 
ity, or  specification. 

Article  XII — Monopolies 

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

Article  XIII — Segregation  or  Industry 

If  any  member  of  the  Industry  is  also  a  member  of  any  other 
industry,  the  provisions  of  this  Code  shall  apply  to  and  affect  only 
that  part  of  his  business  and  employment  which  is  included  in  this 
Industry. 

Article  XIV — Rights  of  President 

This  Code  and  all  the  provisions  thereof  are  expressly  made  sub- 
ject to  the  right  of  the  President,  in  accordance  with  the  provisions 
of  subsection  (b)  of  Section  10  of  the  Act,  from  time  to  time  to  can- 
cel or  modify  any  order,  approval,  license,  rule,  or  regulation  issued 
under  Title  I  of  said  Act,  and  specifically,  but  without  limitation,  to 
the  right  of  the  President  to  cancel  or  modify  his  approval  of  this 
Code  or  any  conditions  imposed  by  him  upon  his  approval  thereof. 

Article  XV — Effective  Date 

This  Code  shall  become  effective  on  the  tenth  day  after  its 
approval  by  the  President. 

Approved  Code  No.  242. 
Kegistry  No.  1340-01. 

o 


Approved  Code  No.  243 

CODE  OF  FAIR  COMPETITION 

FOR  THE 

SLIDE  FASTENER  INDUSTRY 

As  Approved  on  January  31,  1934 


ORDER 
APPROVING  CODE  OF  FAIR  COMPETITION 

FOR  THE 

SLIDE  FASTENER  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  Slide  Fastener  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  bv  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;  provided  that  the  con- 
tinued participation  of  the  Slide  Fastener  Manufacturers  Association 
of  America  in  the  Code  Authority  after  thirty  days  from  the  effective 
date  of  this  Code  shall  be  contingent  upon  its  amending  its  con- 
stitution and  bylaws  to  the  satisfaction  of  the  Administrator;  and 
further  provided  that  the  provisions  of  Article  VII  (Rule  2),  insofar 

87107° 313-168 34       (035) 


636 

as  they  prescribe  a  waiting  period  between  the  filing  with  the  Code 
Authority  and  the  effective  date  of  revised  price  lists  or  revised 
terms  and  conditions  of  sale  be  and  they  are  hereby  stayed  pending 
my  further  Order  either  within  a  period 'of  sixtj'^  days  from  the 
effective  date  of  this  Code  or  after  the  completion  of  a  study  of 
open  price  associations  now  being  conducted  by  the  National  Re- 
covery Administration. 

Hugh  S.  Johnson, 
Achninwtrator  for  Industrial  Recovery. 
Approval  recommended : 
W.  A.  Harriman, 

Division  Administrator. 
AVashington,  D.C, 

January  31, 193 Jj.. 


The  President, 

The  White  Eou^e. 

Sir:  This  is  a  report  on  the  Code  of  Fair  Competition  for  the 
Slide  Fastener  Industry,  and  on  the  hearing  conducted  thereon  in 
"Washington,  D.C.,  on  December  13,  1933,  in  accordance  with  the 
provisions  of  the  National  Industrial  Recovery  Act. 

RESUME  OF  LABOR  PROVISIONS 

Office  employees  shall  not  be  permitted  to  work  in  excess  of  a 
four-week  average  of  40  hours  per  week,  nor  in  excess  of  48  hours 
in  any  one  week. 

A  limited  number  of  employees  engaged  in  emergency  maintenance 
or  repair  work,  and  highly  skilled  employees,  the  restriction  of 
whose  working  hours  would  necessarily  restrict  production  or  the 
employment  of  others,  may  work  not  to  exceed  40  hours  per  week 
averaged  over  a  period  of  26  weeks,  but  time  and  one  half  shall  be 
paid  for  such  work  in  excess  of  40  hours  per  week,  except  that  during 
periods  of  peak  or  breakdown  demand,  necessary  overtime  may  be 
worked,  but  not  to  exceed  48  hours  in  any  one  week  or  96  hours  in 
any  six  months'  period.  Time  and  one  half  shall  be  paid  for  work 
in  excess  of  8  hours  per  day  or  40  hours  per  week. 

These  provisions  shall  not  apply  to  outside  salesmen  or  to  persons 
employed  in  a  managerial,  executive,  or  advisory  capacity,  or  in  a 
capacity  of  sole  responsibility,  who  receive  more  than  $35  per  we^k ; 
nor  shall  they  apply  to  watchmen,  who  may  be  employed  not  to 
exceed  42  hours  per  week  averaged  over  any  period  of  13  consecutive 
weeks. 

The  minimum  wage  for  all  employees  shall  be  40^  per  hour  for 
males  and  371/20  per  hour  for  females,  except  that  a  limited  number 
of  learners  and  apprentices  may,  for  a  limited  period  of  time,  be 
paid  at  the  rate  of  321/20  per  hour.  Female  employees  performing 
substantially  the  same  work  as  male  employees  are  performing  under 
substantially  the  same  conditions  shall  receive  the  same  rate  of  pay ; 
provided,  however,  that  Avhere  an}^  law  prohibits  the  employment 
of  females  during  night  hours,  work  performed  at  night  shall  be 
considered  to  be  performed  under  substantially  different  conditions 
from  the  same  work  during  the  day. 

Equitable  adjustments  in  all  pay  schedules  of  all  employees  above 
the  minimum  shall  be  made  on  or  before  the  effective  date  of  the 
Code  by  employers  who  have  not  heretofore  made  such  adjustments. 

No  pei*son  under  16  years  of  age  shall  be  employed  in  the  Industry 
and  no  person  under  18  years  of  age  shall  be  eniploj^ed  in  operations 
or  occupations  which  are  hazardous  in  nature  or  dangerous  to  health. 

GENERAL  STATEMENT 

This  Industry  is  engaged  in  the  manufacture  of  slide  fasteners, 
more  popularly  known  as  '*  zippers."    Practically  the  entire  produc- 

(637) 


638 

tion  of  the  Industry  is  sold  as  manufactured  material  to  a  trade 
consisting  of  concerns  which,  themselves,  are  manufacturers  in  a. 
wide  variety  of  lines,  among  which  are  included  manufacturers  of 
clothing  of  a  great  variety,  the  leather  products  industry,  the  ladies' 
handbag  industry,  and  the  footwear  industry.  In  such  industries  as 
the  clothing  and  the  leather  manufacturing  industry,  there  are  lit- 
erally hundreds  of  different  articles  of  merchandise  in  which  slide 
fasteners  are  employed. 

The  following  statistics  are  submitted  by  the  Slide  Fastener  Manu- 
facturers Association  of  America,  to  which  all  known  members  of 
the  Industry  belong. 


Number  of 
employees 

Minimum 

hourly 

wage 

Maximum 

weekly 

hours 

Weekly 
pay  roll 

Invested 
capital 

Dollar 
sales 

1928               

671 

924 

1,034 

1,220 

1,309 

$0,256 
.238 
.238 
.223 
.217 

61.6 
67.5 
66.3 
67.7 
68.6 

$18,  200 
23,  350 
24, 050 
29, 850 
30,100 

$2, 478, 167 

3,  273,  758 

4,  365,  136 

5,  758,  482 
6, 064,  564 
6,812,396 

$2,  565,  092 

1929    --- - 

4, 237,  837 

1930 

4,  997,  211 

1931    - 

6,  355, 384 

1932  - - - 

4,  948, 097 

1933                     -. 

7, 360, 025 

January 

1,182 
1,262 
1,726 

.220 
.211 
.343 

67.0 
65.4 
44.2 

28,  500 
28,700 

March                .  . 

November  ..  

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)  The  Code  will  promote  the  policies  and  purposes  of  Title  I 
of  the  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  comjDetitive  practices,  by  pro- 
moting 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  consump- 
tion of  industrial  and  agricultural  products  through  increasing  pur- 
chasing 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- 
ploA'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  Title  I  of  the  Act,  including  without  limitation 
Subsection  {a)  of  Section  3,  Subsection  (a)  of  Section  7,  and  Sub- 
section (b)  oi  Section  10  thereof;  and  that  the  applicant  group  is 
an  industrial  group  truly  rej^resentative  of  the  aforesaid  Industry; 
and  that  said  group  imposes  no  inequitable  restrictions  on  admission 
to  membership  therein. 


639 

(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  st^ps  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,  subject 
to  the  following  condition :  that  the  continued  participation  of  the 
Slide  Fastener  Manufacturers  Association  of  America  in  the  Code 
Authority  after  thirty  clays  from  the  effective  date  of  this  Code  shall 
be  contingent  upon  its  amending  its  constitution  and  bylaws  to  the 
satisfaction  of  the  Administrator. 
Respectfully, 

Hugh  S.  Johnson, 

Adininistrator. 
January  31,  1934. 


CODE  OF  FAIR  COMPETITION 

FOR  THE 

SLIDE  FASTENER  INDUSTRY 

Aeticle  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  Slide  Fastener  Industry,  and  shall  be 
the  standards  of  fair  competition  for  such  Industry  and  shall  be 
binding  upon  every  member  thereof. 

Article  II — Definitions 

The  term  "  Industry "  as  used  herein  includes  and  means  the 
manufacture  and  sale  of  slide  fasteners  in  the  United  States  or  its 
possessions,  and  such  branches  or  subdivisions  thereof  as  may  from 
time  to  time  be  included  under  the  provisions  of  this  Code  by  the 
President  after  such  notice  and  hearing  as  he  may  prescribe. 

The  term  "  slide  fastener  "  as  used  herein  is  defined  to  mean  that 
form  of  fastening  device  which  includes  a  pair  of  rows  of  inter- 
engageable  fastening  elements  which  may  be  engaged  or  disengaged 
by  a  member  slidable  along  the  rows. 

The  term  "  member  of  the  Industry  "  means  and  includes,  but 
without  limitation,  any  individual,  partnership,  association,  cor- 
poration, receiver,  or  other  person  engaged  in  the  Industry,  either 
as  an  emploj^er  or  on  his  own  behalf. 

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

The  term  "  employer "  as  used  herein  means  and  includes  but 
without  limitation  all  individuals,  partnerships,  associations,  trusts, 
corporations,  and  receivers  in  the  Industry  by  whom  such  employees 
are  employed. 

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. 

Population  for  the  purposes  of  this  Co(Je  shall  be  determined  by 
reference  to  the  latest  Federal  Census. 

Article  III — Hours 

Section  1.  No  accounting,  clerical,  or  office  employees  shall  work 
or  be  permitted  to  work  more  than  forty  (40)  hours  per  week  aver- 
aged over  any  period  of  four  (4)  consecutive  weeks  nor  more  than 
forty-eight  (48)  hours  in  any  one  week. 

Sec.  2.  No  employee,  except  accounting,  clerical,  or  office  em- 
ployees, shall  work  or  be  permitted  to  work  in  excess  of  forty  (40) 

(640) 


641 

hours  per  week,  provided  however,  that  this  limitation  of  maximum 
weekly  hours  shall  not  apply  under  temporary  conditions  where 
seasonal  or  peak  demand  or  break-down  imposes  an  unusual  and 
temporary  burden,  in  which  case  such  number  of  hours  may  be 
worked  as  are  required  by  the  necessity  of  the  situation  not  to  exceed 
forty-eight  (48)  hours  in  any  one  week  nor  overtime  in  any  six  (6) 
months'  period  in  excess  of  ninety-six  (96)  hours,  provided  further, 
that  time  and  one  half  or  rate  and  one  half,  as  the  case  may  be,  shall 
be  paid  for  all  time  worked  in  excess  of  eight  (8)  hours  in  any  one 
day  of  forty  (40)  hours  in  any  one  week. 

Sec.  3.  The  maximum  hours  fixed  in  Section  2  of  this  Article  shall 
not  appl}'^  to  employees  engaged  in  emergency,  maintenance,  or  repair 
work,  nor  to  highly  skilled  employees,  the  restriction  of  whose  work- 
ing hours  would  necessarily  restrict  production  or  the  employment 
of  others,  but  the  number  of  emploj'ees  subject  to  this  Section  shall 
not  at  any  time  exceed  fifteen  (15)  per  cent  of  the  total  number  of 
employees  of  any  employer,  and  in  any  such  case  at  least  time  and 
one  half  or  rate  and  one  half,  as  the  case  may  be,  shall  be  paid 
for  hours  worked  in  excess  of  forty  (40)  hours  in  any  one  week; 
provided  however,  the  number  of  hours  of  actual  employment  of 
any  such  employee  shall  not  exceed  an  average  of  forty  (40)  hours 
per  week  over  a  period  of  twenty-six   (26)   consecutive  weeks. 

Sec.  4.  The  foregoing  provisions  of  this  Article  shall  not  apply  to 
outside  salesmen  or  to  persons  employed  in  a  managerial,  executive 
or  supervisory  capacity,  or  in  a  capacity  of  sole  responsibility,  receiv- 
ing more  than  thirty-five  dollars  ($35.00)  per  week,  nor  shall  they 
apply  to  watchmen,  provided,  however,  that  watchmen  shall  not  be 
employed  in  excess  of  forty -two  hours  per  week,  averaged  over  any 
period  of  thirteen  (13)  consecutive  weeks. 

Sec.  5.  Xo  employee  shall  work,  or  shall  knowingly  be  permitted 
by  an  employer  to  work,  for  a  total  number  of  hours  in  excess  of  the 
number  of  hours  prescribed  for  each  week  or  day,  whether  employed 
by  one  or  more  employers. 

Article  IV — ^Wages 

Section  1.  Oifice  Employees. — No  accounting,  clerical  or  office  em- 
ployee shall  be  paid  less  than  at  the  rate  of  fifteen  dollars  ($15.00)  per 
week  in  anj'  city  of  over  five  hundred  thousand  (500,000)  population, 
or  in  the  immediate  trade  area  of  such  city ;  nor  less  than  at  the  rate 
of  fourteen  dollars  and  fifty  cents  ($14.50)  per  week  in  any  city  of 
between  two  hundred  fifty  thousand  (250,000)  and  five  hundred  thou- 
sand (500,000)  population,  or  in  the  immediate  trade  area  of  such 
city;  nor  less  than  at  the  rate  of  fourteen  dollars  ($14.00)  per  week 
for  cities  or  towns  of  less  than  two  hundred  fifty  thousand  (250,000) 
population. 

Sec.  2.  Factory  and  Other  Employees. — The  minimum  wage  of  any 
employee,  excepting  accounting,  clerical  or  office  employees  and  learn- 
ers and  apprentices,  shall  be  forty  cents  (400)  per  hour  for  males  and 
thirty-seven  and  one  half  cents  (371/20)  per  hour  for  females.  Fe- 
male employees  performing  substantially  the  same  work  as  male  em- 
ployees are  ^performing  imder  substantially  the  same  conditions  shall 
receive  the  same  rate  of  pay ;  provided,  however,  that  where  any  law 
prohibits  the  employment  of  females  durmg  night  hours,  work  per- 


642 

formed  at  night  shall  be  considered  to  be  performed  under  substan- 
tially different  conditions  from  the  same  work  performed  during  the 
day.  When  during  periods  of  slump  production  male  employees  are 
transferred  temporarily  from  work  carrying  a  higher  rate  of  pay  to 
work  carrying  a  lower  rate  of  pay  and  ordinarily  performed  only  by 
females,  the  above  specified  differentials  in  minimum  rates  may  apply 
as  between  males  and  females  who  may  thus  as  a  consequence  be  tem- 
porarily performing  substantially  the  same  work  under  substantially 
the  same  conditions.  The  Code  Authority  shall  within  ninetj'^  days 
after  the  effective  date  of  this  Code  file  with  the  Administrator  a 
description  of  all  operations  in  the  Industry  in  which  both  men  and 
women  are  employed. 

Seo.  3.  The  minimum  wage  for  learners  and  apprentices  shall  be 
thirty-two  and  one  half  (321/^^)  cents  per  hour;  provided,  however, 
that  learners  on  piece-rate  operations  whose  earnings  exceed  the  above 
minimum  shall  be  paid  the  full  amount  they  actually  earn,  and  pro- 
vided, further,  that  learners  and  apprentices  employed  by  any  indi- 
vidual employer  shall  not  collectively  exceed  ten  percent  (10%)  of 
the  total  number  of  employees  of  such  employer.  No  employee  shall 
be  considered  a  learner  after  eight  weeks  of  employment  by  any  em- 
ployer, and  no  employee  who  has  been  employed  for  eight  weeks  or 
longer  shall  be  reengaged  by  the  same  employer  as  a  learner. 

Sec.  4.  All  apprentices  receiving  less  than  the  minimum  wage  of 
forty  cents  (40fS)  per  hour  must  be  under  the  age  of  twenty-one  (21) 
years  and  under  written  contract  with  an  employer  covering  a  definite 
period  of  instruction  in  any  specific  craft  recognized  by  the  American 
Federation  of  Labor. 

Sec.  5.  Any  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  autliorizing  his  employment  at  such 
wages  and  for  such  hours  as  shall  be  stated  in  the  certificate.  Such 
Authority  shall  be  guided  by  the  instructions  of  the  United  States 
Department  of  Labor  in  issuing  certificates  to  such  persons.  Each 
employer  shall  file  with  the  Code  Authority  a  list  of  all  such  persons 
employed  by  him. 

Sec.  6.  Guaranteed  Minimuin. — This  Article  establishes  a  minimum 
rate  of  pay  which  shall  applj'-,  irrespective  of  whether  an  employee  is 
actually  compensated  on  a  time  rate,  piecework,  or  other  basis. 

Sec.  7.  Wage  Adpistinents. — Equitable  adjustments  in  all  pay  sched- 
ules of  all  employees  above  the  minimum  shall  be  made  on  or  before 
the  effective  date  of  the  Code  by  employers  who  have  not  heretofore 
made  such  adjustments  and  the  first  monthly  reports  of  wages  re- 
quired to  be  filed  under  the  Code  shall  contain  all  wage  increases 
since  June  16,  1933. 

Article  V — General  Labor  Provisions 

Section  1.  Child  Labor  Provisions. — 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  occu- 
pations which    are  hazardous  in    nature   or  dangerous    to  health. 
i.Within  ninety  (90)  days  from  the  effective  date  of  this  Code  each 


643 

niomber  of  the  Tnrlnstry  shall  furnish  to  the  Code  Authority,  herein 
provided,  a  list  of  the  hazardous  occupations,  operations,  and  ma- 
chines in  its  plants. 

Sec.  2.  Provisions  from  the  Act. —  (a)  Employees  shall  have  the 
ris^ht  to  organize  and  bargain  collectively  through  representatives 
of  their  own  choosing  and  shall  be  free  from  the  interference,  re- 
straint, or  coercion  of  employers  of  labor  or  their  agents,  in  the 
designation  of  such  representatives,  or  in  self-organization  or  in 
other  concerted  activities,  for  the  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, 
mininuim  rates  of  pay,  and  other  conditions  of  employment  ap- 
proved or  prescribed  hy  the  President. 

Sec.  3.  Reclassi-fl<^ation  of  Employees. — No  employer  shall  re- 
classify employees  or  duties  of  occupations  performed  or  engage  in 
any  other  subterfuge  for  the  purpose  of  defeating  the  provisions  of 
the  Act  or  of  this  Code. 

Sec.  4.  State  Laics. — 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  protec- 
tion, or  general  working  conditions,  than  are  imposed  by  this  Code. 

Sec.  5.  Posting. — All  employers  shall  post  complete  copies  of  this 
Code  in  conspicuous  places  accessible  to  all  employees. 

Article  VI — Organization,  Poavers,  and  Duties  of  the  Code 

Authority 

Section  1.  Organization. — 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  five  (5)  members  ap- 
pointed by  the  President  of  the  Slide  Fastener  Manufacturers'  Asso- 
ciation of' America,  subject  to  the  approval  of  the  Board  of  Directors 
of  the  Association,  but  no  more  than  one  member  shall  be  appointed 
from  one  member  of  the  Industry.  Each  duly  appointed  member 
of  the  Code  Authority  may  designate,  with  the  approval  of  the  Code 
Authority,  an  alternate  member  who  may  act  as  a  member  of  the 
Code  Authority  in  the  absence  of  the  appointed  member  desig- 
nating him. 

In  addition,  the  Administrator  may  appoint  not  to  exceed  three 
(3)  members  of  the  Code  Authority  without  vote  who  shall  serve 
for  terms  of  from  six  months  to  one  year  and  whose  terms  of  appoint- 
ment shall  be  so  arranged  that  they  do  not  expire  at  the  same  time. 

The  representatives  who  may  be  appointed  by  the  Administrator 
shall  be  given  notice  of  and  may  sit  at  all  meetings  of  the  Code 
Authority.^ 

1  See  paragraph  2  of  order  approving  this  Code. 


644 

Seo.  8.  The  Slide  Fastener  Manufacturers'  Association  shall  (1) 
Impose  no  inequitable  restrictions  on  membership  and  (2)  submit  to 
the  Administrator  true  copies  of  its  articles  of  association,  bylaws, 
regulations,  and  any  amendments  when  made  thereto,  together  Avith 
6uch  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  hearings 
as  he  may  deem  proper ;  and  thereafter  if  he  shall  find  that  the  Code 
Authority  is  not  tridy  representative  or  does  not  in  other  respects 
comply  with  the  provisions  of  the  Act,  may  require  an  appropriate 
modification  in  the  method  of  selection  of  the  Code  Authority,  or 
any  sub-Code  Authority. 

Sec.  5.  Members  of  the  Industry  shall  be  entitled  to  participate  in 
and  share  the  benefits  of  the  activities  of  the  Code  Authority  by 
assenting  to  and  compl3dng  with  the  requirements  of  this  Code  and 
sustaining  their  reasonable  share  of  the  expenses  of  its  administra- 
tion. Such  reasonable  share  of  the  expenses  of  administration  shall 
be  determined  by  the  Code  Authority,  subject  to  review  by  the  Ad- 
ministrator, on  the  basis  of  such  factors  as  may  be  deemed  equitable. 

Seo.  6.  Nothing  contained  in  this  Code  shall  constitute  the  mem- 
bers of  the  Code  Authority  partners  for  any  purpose. 

Sec.  7.  Powers  and  Duties. — The  Code  Authority  shall  have  the 
following  powers  and  duties  to  the  extent  permitted  by  the  Act, 
subject  to  the  right  of  the  Administrator,  on  review,  to  disapprove 
any  action  taken  by  the  Code  Authority. 

A.  POWERS 

(a)  To  use  such  trade  associations  and  other  agencies  as  it  deems 

E roper  for  the  carrying  out  of  any  of  its  activities  p)rovided  for 
erein  and  to  pay  such  trade  associations  and  agencies  the  cost 
thereof  J  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. 

(b)  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. 

(c)  To  secure  an  equitable  and  proportionate  payment  of  the 
expenses  of  maintaining  the  Code  Authority  and  its  activities  from 
those  members  of  the  Industry  who  accept  the  benefits  of  the  activ- 
ities of  the  Code  Authority  or  otherwise  assent  to  this  Code. 

(d)  To  make  recommendations  for  fair  trade  practices,  including 
jH'ovisions  against  selling  below  cost,  and  otherwise  to  assist  the 
Administrator  in  effecting-  the  purpose  of  this  Code  and  Act.  Any 
such  recommendation  upon  the  approval  of  the  Administrator,  after 
s:uch  hearing  and  notice  as  he  shall  prescribe,  shall  become  part  of 
this  Code. 

(e)  To  initiate,  consider  and  make  recommendations  for  the  modi- 
fication or  amendment  of  this  Code. 


645 


B.  DUTIES 


(a)  To  adopt  bylaws  and  rules  and  regulations  for  its  procedure 
and  for  the  administration  and  enforcement  of  the  Code,  in  accord- 
ance with  the  powers  herein  granted,  and  to  submit  the  same  to  the 
Administrator  for  his  approval  together  with  true  copies  of  any 
amendments  or  additions  when  made  thereto,  minutes  of  meetings 
when  held,  and  such  other  information  as  to  its  activities  as  the 
Administrator  may  deem  necessary  to  effect  the  purposes  of  the 
Act. 

(b)  To  obtain  through  a  confidential  agency  from  members  of 
the  Industry  periodical  reports  in  such  form  and  at  such  times  with 
respect  to  wages,  hours  of  labor,  conditions  of  employment,  number 
of  employees,  and  such  other  matters  pertinent  to  the  purposes  of 
this  Code  as  the  Code  Authority,  with  the  approval  of  the  Adminis- 
trator, may  require  for  the  administration  and  enforcement  of  this 
Code,  and  to  submit  reports  to  the  Administrator  in  such  form  and 
at  such  times  as  he  may  require  in  order  that  the  President  may 
be  informed  as  to  the  observance  or  nonobservance  of  this  Code  and 
to  further  effectuate  the  policies  of  the  Act.  The  confidential  agency 
shall  be  an  accountant  or  firm  of  accountants  of  national  reputation 
and  all  reports  received  by  such  confidential  agency  shall  be  held  as 
secret  and  confidential  and  disclosed  to  no  person,  except  that  they 
shall  be  made  available  to  the  Administrator  on  request  to  the 
Code  Authority.  Such  agency  shall  analyze,  digest,  and  consolidate 
such  reports  and  except  as  provided  above  shall  disclose,  but  only 
to  the  Code  Authority,  general  findings  based  thereon  and  necessary 
to  the  administration  of  the  Code.  Wliere  a  specific  investigation 
is  required  by  the  Code  Authority  of  any  member  of  the  Industry  to 
determine  whether  or  not  such  member  has  violated  Trade  Practice 
Rule  1  of  this  Code,  the  agency  for  such  investigation  shall  be  one 
of  not  less  than  three  accountants  or  firms  of  accountants  nominated 
by  such  member  of  the  Industry,  but  in  the  absence  of  such  nomina- 
tion after  notice  from  the  Code  Authority,  the  Code  Authority 
may  select  such  agency  on  its  own  initiative.  Any  accountant  or 
firm  of  accountants  selected  or  nominated  to  act  under  the  pro- 
visions of  this  section  shall  be  a  certified  public  accountant  or  firm 
of  certified  public  accountants  or  an  accountant  or  firm  of  account- 
ants having  the  equivalent  in  qualifications  and  ability  of  a  certified 
public  accountant;  provided,  however,  that  as  to  any  service  to  be 
performed  in  any  particular  State  or  Governmental  subdivision  of 
the  United  States,  such  accountant  or  firm  of  accountants  in  any 
event  shall  have  qualifications  required  by  law  in  such  State  or 
Governmental  subdivision  of  the  United  States  for  the  performance 
of  such  service. 

(c)  To  receive  complaints  of  violations  of  this  Code,  make  inves- 
tigations thereof,  provide  hearings  thereon,  and  adjust  such  com- 
plaints, and  bring  to  the  attention  of  the  Administrator  for  prosecu- 
tion, recommendations  and  information  relative  to  unadjusted 
violations. 

(d)  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. 


646 

Sec.  8.  General  Ad-nvmistrative  Provision. — In  addition  to  the  in- 
formation required  to  be  submitted  to  the  Code  Authority  as  set 
forth  in  this  Article  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  National  Indus- 
trial Recovery  Act. 

Article  VII — Trade  Practice  Rules 

General  Defmition^. — For  all  purposes  of  the  Code,  violation  of 
the  following  rules  described  in  this  Article  shall  constitute  unfair 
practices.  Any  member  of  the  Industry  who  shall  directly,  or  indi- 
rectly, through  any  officer,  employee,  agent,  or  representative,  know- 
ingly use,  employ,  or  permit  to  be  employed,  any  of  such  unfair  prac- 
tices, shall  be  guilty  of  a  violation  of  the  Code. 

Rule  1.  Selling  Below  Cost. — No  member  of  the  Industry  shall 
sell  or  exchange  any  slide  fastener  or  part  thereof  below  the  cost 
thereof  to  that  individual  member.  Such  cost  shall  include  all  labor 
charges  at  rates  provided  for  under  this  Code,  whether  such  slide 
fastener  in  whole  or  in  part  is  produced  in  the  United  States  or 
elsewhere.  However,  any  member  may  meet  the  price  competition 
of  any  competitor  in  this  Industi-y  whose  costs  under  this  Code  pro- 
vision are  lower  than  his  own.  Cost  shall  be  determined  in  accord- 
ance with  the  principles  enumerated  in  any  standard  cost  system 
formulated  by  the  Code  Authority  with  the  approval  of  the 
Administrator. 

Rule  2.  Price  Lists. — Each  member  of  the  Industry  shall  print 
and  shall  publish  a  list  showing  its  own  sale  prices  of  first-quality 
slide  fasteners  and  parts  thereof.  Each  such  list  shall  bear  the  date 
of  issue  thereof  and/or  the  effective  date  thereof  and  shall  include 
a  schedule  of  terms  of  payment  and  of  all  discounts  which  may  be 
offered  to  the  trade  by  the  member  publishing  the  list.  As  respects 
any  slide  fasteners  sold  or  delivered  by  any  member  of  the  Industry 
for  use  or  consumption  in  the  United  States,  no  quotation  or  grant 
of  prices  lower  or  terms  of  payment  or  discounts  more  favorable 
shall  be  made  than  those  set  forth  in  such  member's  price  list  then 
in  effect  for  first-quality  slide  fasteners.  No  member  of  the  Indus- 
try shall  make  any  change  or  alteration  in  any  item  or  detail  of  its 
own  published  price  list  including  prices,  terms  of  payment  and  dis- 
counts, without  having  given  the  Code  Authority  ten  days'  advance 
notice  in  writing  of  any  such  change  or  alteration  and  without  hav- 
ing delivered  to  the  Code  Authority  at  the  time  of  filing  such  notice 
a  supply  of  such  member's  new  printed  price  lists  or  a  supply  of  cor- 
rection or  alteration  memoranda  setting  forth  such  change  and  the 
effective  date  thereof,  which  supply  shall  be  in  number  sufficient  to 
enable  the  Code  Authority  to  deliver  a  copy  thereof  to  each  member 
of  the  Industry.  The  Code  Authority  shall  so  deliver  a  copy  to  each 
member  of  the  Industry  immediately  upon  receipt  thereof,  and  each 
member  of  the  Industry  may  thereupon  alter  or  change  its  own  price 
list  effective  not  earlier  than  the  effective  date  of  the  change  as  to 
which  notice  was  given  to  the  Code  Authority  as  above  provided,  but 
in  each  such  case  copies  of  the  new  printed  price  list  or  of  the  mem- 
orandum of  change  or  alteration  in  tlie  old  price  list  shall  forthwith 
be  furnished  to  the  Code  Authority  in  quantities  sufficient  for  supply- 


647 

ing  copies  thereof  to  each  member  of  the  Industry.  Nothing  in  this 
Rule  2  shall  apply  to  sales  of  slide  fasteners  by  one  member  of  the 
Industry  to  another  member  of  the  Industry .^ 

Rule  3.  False  Billing. — No  member  of  the  Industry  shall  deliver 
to  any  customer  a  greater  number  of  complete  slide-fastener  units 
or  parts  thereof  than  are  billed  and  charged  to  such  customer  in  the 
transaction  under  which  such  delivery  is  made.  No  member  of  the 
Industry  sliall  grant  any  rebate  on  the  price  billed  and  charged  to 
a  customer  or  deliver  to  a  customer  at  a  price  lower  than  the  regular 
price  thereof,  or  free  of  charge,  any  other  kind  of  merchandise  other 
than  slide  fasteners,  or  parts  thereof,  as  an  inducement  to  purchase 
slide  fasteners. 

Article  VIII — ISIgdification 

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  modif}^  any  order,  approval,  license,  rule,  or  regu- 
lation issued  under  Title  I  of  said  Act,  and  specifically,  but  without 
limitation,  to  the  right  of  the  President  to  cancel  or  modify  his 
approval  of  this  Code  or  any  conditions  imposed  by  him  upon  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  Admin- 
istrator and  such  notice  and  hearing  as  he  shall  specify,  and  to  be- 
come effective  on  approval  of  the  Administrator. 

Article  IX — Monopolies,  Etc. 

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

Article  X — Price  Increases 

AVhereas  the  policy  of  the  Act  to  increase  real  purchasing  power 
will  be  made  impossible  of  consummation  if  prices  of  goods  and 
services  increase  as  rapidly  as  wages,  it  is  recognized  that  price 
increases  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  ita 
approval  by  the  President. 

This  Code  shall  cease  to  be  in  effect  when  the  Act  ceases  to  be 
in  effect. 

Approved  Code  No.  243. 
Registry  No.  1122-1-05. 


«  See  paragraph  2  of  order  approving  this  Code. 

o 


Approved  Code  No.  244 
CODE  OF  FAIR  COMPETITION 

FOR  THE 

CONSTRUCTION  INDUSTRY 

As  Approved  on  January  31,  1934 

BY 

PRESIDENT  ROOSEVELT 


Executive    Order 

Code  or  Fair  CoMrExiTioN  for  the  Construction  Industry 

An  application  having  been  duly  made,  pursuant  to  and  in  full 
compliance  with  the  provisions  of  Title  I  of  the  National  Industrial 
Recoveiy  Act,  approved  June  IG,  1933,  for  my  approval  of  a  Code 
of  .Fair  Competition  for  the  Construction  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  Sub.-ection  (a)  of  Section  3  of  the  said  Act  have  been  met: 

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

FRANKLIN  D.  ROOSEVELT. 

Approval  recommended : 
Hugh  S.  Johnson, 

Administrator. 

The  White  House, 

January  31,  193 ^, 

29048" 296-107 34  (G49) 


The  Pkepident, 

The  White  House. 

Sir: 

A  proposed  Code  of  Fair  Competition  for  the  Construction  Indus- 
try ^Yas  suljniitted  to  the  Administrator  on  Aufjust  7,  1933.  b}^  The 
Construction  Leafiue  of  the  United  States.  The  hearing  was  con- 
ducted in  Washington  on  September  6.  1933.  The  Code  was  revised 
during  the  recess  of  this  hearing  and  a  reconvened  hearing  was 
held  November  20,  1933. 

At  the  conclusion  of  the  reconvened  hearing,  I  appointed  a  com- 
mittee to  report  on  this  Code.  This  committee  was  composed  of 
representatives  from  this  Administration  and  from  the  interested 
employer  and  employee  groups  and  associations. 

The  deliberations  of  this  committee  were  very  helpful,  but  cer- 
tain controversial  points  were  not  satisfactorily  adjusted.  The  con- 
troversial points  in  the  Code  have  now  been  satisfactorily  adjusted 
and  the  Code,  as  now  submitted  to  you,  has  the  approval  of  both 
employer  and  employee  groups. 

In  addition  to  the  establishment  of  a  Construction  Code  Author- 
ity to  administer  the  Code  generally,  the  Code  provides  for  the 
establishment  of  Construction  Phmninji  and  Adjustment  Boards. 
'Jlie  National  Construction  Pumning  ami  Adjus;men'"  I))a?"*l  will 
consist  of  ten  persons  to  be  selected  by  the  Construction  Code  Author- 
ity and  ten  persons  v/iJl  be  selected  by  the  Labor  Advisory  Board 
from  nominations  of  the  Construction  employee  organizations,  and 
a  disinterested  ch^Tirman  will  be  selected  by  the  President  upon  the 
recommendation  of  the  Administrator. 

This  Board  will  have  the  authority  to  estrblish  subsidiary  re- 
gio'-al  boards  to  b?  k'K)\vn  as  Re.Q'ional  Construction  Planning  and 
Adjustment  Boards  providing  equal  representation  of  emjdoyer  and 
■oraployee  groups.  Such  actions  as  they  may  see  fit  to  take  are  sub- 
ject to  final  determination  by  the  National  Construction  Planning 
and  Adjustment  Board. 

The  e;4ab]ishment  of  these  Boards  is  of  prime  importance  as  they 
provide  a  method  by  which  Industry  and  Labor  may  meet  on  com- 
mon ground  for  the' purpose  of  planning  for  the  entire  industry  and 
for  the  adjustment  of  such  disputes  as  may  b-^  submitted  to  them. 
They  will  make  jDos'^ible  the  cooperation  of  employers  and  employees 
in  ail  matters  pertaining  to  their  relations,  and  to  all  matters  perti- 
nent to  the  Industry. 

The  provisions  of  the  Code  providing  for  these  Boards  do  not, 
however,  make  it  mandatory  upon  the  part  of  anyone  to  submit 
their  problems  to  these  Boards  nor  mandatory  upon  the  part  of  the 
Boards  to  accei)t  for  adju  tment  such  problems. 

Provh^ons  of  code  as  to  vmges  and  hours. — To  effectuate  the 
policy  of  Title  I  of  the  Act,  this  Code  provides  for  collective  bar- 
gaining between  truly  representative  groups  or  associations  of  em- 

(650) 


651 

ploj'ers  and  employees  for  a  specifically  defined  refjjion  or  locality. 
The  entire  Ignited  State?  may  lie  defined  a^  a  refrion.  Mutual  airree- 
ments  so  reached  as  to  hours  of  labor,  rates  of  pay,  and  other  condi- 
tions relatino:  to  occupations  or  types  of  operations,  when  approved 
by  the  President,  become  the  standard  of  hours  of  labor,  rates  of 
l^ay,  and  other  conditions  of  employment.  After  the  President's 
approval  of  such  mutual  a<Treements,  it  becomes  prima  facie  unfair 
competition  for  an  employer  to  fail  to  comply  with  these  a<]jreements, 
arrived  at  through  collective  barjiaininc;.  The  Administrator  will 
establish  such  boards  (comi)osed  of  employers  and  employees)  as  are 
necessary  to  investigate  all  complaints  as  to  such  unfair  practice 
arisino^  under  such  agreements. 

In  regions  or  localities  where  no  such  mutual  agreement  has  been 
approved,  tlie  following  maximum  hours  and  minimum  rates  of  pay 
will  prevail:  The  maximum  hours  are  limited  to  40  hours  ])er  week 
for  laborers,  accounting,  clerical,  and  office  employees.  Upon  the 
ap])roval  by  the  Xational  Planning  and  Adjustnient  Board,  work- 
ing hours  not  exceeding  48  hours  per  week  may  be  allowed  on 
projects  so  remote  and  inacce-=sible  that  camps  and  floating  plants 
are  necessary  for  housing  or  boarding  of  the  majority  of  the  labor 
employed,  or  on  such  projects  when  working  time  has  been  lost  be- 
cause of  inclement  weather  or  unavoidable  delays,  or  on  projects  in 
localities  where  a  sufficient  amount  of  qualified  labor  is  not  available 
in  the  inunediate  vicinity  of  the  work.  Hours  for  accounting,  cleri- 
cal, or  ofHce  eni]iloyees  are  flexible  during  a  four-week  period. 

The  following  classes  of  employees  are  exempted  from  the  max- 
imum hourly  provisions  of  the  Code : 

(a)  Employees  engaged  in  professional,  executive,  or  supervisory 
work. 

(b)  Employees  in  establishments  employing  not  more  than  two 
(2)  persons  in  towns  of  less  than  2,500  population,  which  towns  are 
not  part  of  a  larger  trade  area. 

(c)  Employees  engaged  in  emergency  work,  involving  breakdowns 
or  i)rotec(ion  of  life  or  property. 

(d)  Watchmen. 

(e)  Other  employees  who  may  be  exempted  in  chapters  of  this 
Code  sjiecifically  ap]~)!ic'able  only  to  the  divisions  or  subdivisions 
of  the  industry  therein  defined. 

No  evasion  of  this  Code  by  reclassifications  of  workers  can  be 
permitted. 

The  minimum  wage  rate,  varying  from  $15.00  to  $12.00  for  ac- 
♦'onnting,  oflice,  and  clerical  employees,  is  based  on  j)o])ulation  dif- 
t'.ientials.  For  laborers,  the  minimum  rate  is  40^  per  hour  and  shall 
not  be  construed  as  establishing  a  minimum  rate  of  pay  for  other 
than  common  or  unskilled  labor  and  shall  not  be  construed  to  au- 
thorize reductions  in  existing  rates  of  i)ay. 

Xo  minor  under  the  age  of  16  years  of  age  shall  be  employed. 

ECONOMIC  EFFIXT  OF  THE  CODE 

Very  great  potential  economic  benefits  for  the  Construction  Tn- 
dustry  are  assured  by  this  Cotle  for  tlie  Construction  Industry 
especially  in  view  of  its  ])roposed  supplementary  chapters  for  the 
several  functional  divisions  of  the  industry. 


652 

The  Code  gives  to  the  Construction  Industrjr,  for  the  first  time^. 
the  power  of  coordinated  action,  which  may  be  used  to  check  the 
violent  fluctuations  in  volume  of  construction,  ranging  from  100% 
above  to  50%  below  normal  requirements,  and  work  toward  stabiliza- 
tion based  upon  demand ;  to  unify  the  Industry,  locally,,  regionally,, 
and  nationally  for  self-government;  and  to  provide  unit}^  of  action 
in  meeting  national  emergecies. 

The  provisions  of  the  Code  designed  to  prevent  practices  known. 
as  ''  bid  shopping  "  and  "  bid  peddling  "  wmII  be  productive  of  fair 
competition  in  contracting  for  construction  work.  These  provisions,, 
in  conjunction  with  the  provisions  as  to  area  agreements  concerning 
labor  conditions,  should  greatly  facilitate  strict  adherence  by  all 
members  of  the  Industry  to  such  Code  provisions  as  those  intendeds 
to  prevent  "  bid  shopping  "  and  "  bid  peddling  "  and  thus  tend  to- 
create  equally  the  same  conditions  for  labor  and  members  of  the 
Industry. 

Return  to  normal  volume  in  the  Industry  can  result  only  through, 
investment  of  private  capital  in  construction.  The  increased  cost 
of  construction,  due  to  an  immediate  increase  in  wage  rates,  will  not 
be  productive  of  private  construction  work  at  the  present  time- 
Such  work  is  optional  and  depends  to  a  large  extent  on  the  relation- 
ship of  current  construction  cost  to  anticipated  net  incon^ie  or  future 
increnent  in  value.  In  these  circumstances,  further  limitation  on 
liours  will  have  little  effect  on  increasing  employment  as  construc- 
tion volume  has  sunk  to  such  low  levels  that  it  is  impossible  to  spread 
the  small  amount  of  work  among  a  greater  number  of  people  without, 
reducing  all  wage  payments  below  a  living  minimum  wage. 

The  second  largest  industry  in  the  nation  has  as  yet  shown  no: 
signs  of  recovery  under  the  National  Recovery  Program  although 
capable  of  jiutting  more  than  half  of  the   remaining  unemployed 
back  to  work.     This  Code  for  the  Construction  Industry  with  its. 
main  and  proposed  supplementary  chapters  provides,  for  the  first 
time,  machinery  which  could  operate  according  to  an  unified  plan 
both  to  aid  immediately  in  the  recovery  movement  and  to  begin  tiie- 
long-term  stabilization  of  the  Construction  Industry. 

FINDINGS 

The  Division  Administrator  in  his  final  report  to  me  on  said  Code- 
having  found  as  herein  set  forth  and  on  the  basis  of  ail  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- 
dustr}^  for  tlie  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 


653 

temporarily  reqiiirecl),  by  increasing  the  consumption  of  industrial 
and  agricultural  ))roducts  through  increasing  purchasing  power,, 
hy  reducing  and  relieving  unemployment,  by  improving  standards 
lof  labor,  and  by  otherwise  rehabilitating  industry'. 

(b)  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  asso- 
'ciations  are  industrial  associations  truly  representative  of  the  afore- 
said Industry ;  and  that  said  associations  impose  no  inequitable  re- 
;strictions  on  admission  to  membership  therein, 

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

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

(e)  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  recommend  approval  of  this  Code. 
Respectfully, 

Hugh  S.  Johnson, 

Admin  istrator. 
January  31,  193 Jf^ 


CODE  OF  FAIR  COMPETITION 

FOR   THE 

CONSTRUCTION  INDUSTRY 

To  effectuate  the  policies  of  Title  I  of  the  National  Industrial 
Recovery  Act,  the  following  provisions  are  established  as  a  Code 
of  Fair  Competition  for  the  Construction  Industry,  and  shall  be  the 
standard  of  fair  competition  for  this  industry  and  shall  be  binding 
upon  every  member  thereof. 

CHAPTER  I— GENERAL  PROVISIONS 

Article  I — Application 

The  provisions  of  this  Code  shall  apply  to  the  entire  industry  as 
hereinafter  defined,  excluding  operations  therein  undertaken  in 
accordance  with  bona  fide  bids  made  not  more  than  sixty  (60)  days 
prior  to  the  effective  date,  or  contracts  entered  into  prior  to  ihe 
effective  date;  except  that  the  provisions  of  each  chapter  incor- 
porated in  this  Code  shall  apply  only  to  tlie  division  or  subdivision 
of  the  Industry  defined  in  such  chapter.  In  the  case  of  conflict  be- 
tween such  chapter  provisions  and  the  general  provisions  of  this 
Code,  the  chapter  provisions  shall  govern.  If  any  other  code  of 
fair  competition  or  a  provision  thereof,  heretofore  or  hereafter  ap- 
proved by  the  President,  shall  conflict  with  this  Code  or  with  any 
provisions  thereof,  the  Administrator  may  hold  such  hearings  as  he 
may  deem  necessary  and  thereafter  may,  if  in  his  judgment  justice 
requires,  grant  such  stay,  exception,  or  exemption  or  make  such  other 
determination  as  he  may  deem  advisable  to  effectuate  the  policies 
of  the  Act. 

Article  II — Definitions 

Section  1.  The  term  "  construction  industry  "  or  "  the  industry  " 
as  used  herein  shall  include  the  designing  and  the  constructing  of 
(and  the  installing  and  the  applying,  including  the  assembling  at 
the  site,  of  manufactured  parts  and  products  incorporated  in  and 
to)  : 

(a)  building  structures,  including  modifications  thereof  and  fixed 
construction  accessory  thereto,  intended  for  use  as  shelter;  and 
other 

(b)  fixed  structures  and  other  fixed  improvements  and  modifica- 
tions thereof,  intended  for  use  in  industry,  commerce,  sanitation, 
transportation,  connnunication,  flood  control,  power  development, 
reclamation,  and  other  similar  projects  or  services;  and  such  related 
divisions  or  subdivisions  thereof  as  may  be  defined  in  chapters 
hereof  and  included  hereunder  with  the  approval  of  the  President. 

(654) 


Sec.  2.  The  term  "  division  of  the  industry  "  or  "  division  "  as  used 
herein  shall  mean  a  branch  of  the  industry  which  has  been  or  may 
hereafter  be  defined  in  a  particular  chapter  of  this  Code.  The 
term  "  subdivision  of  the  industry  "  or  "  subdivision  "  shall  mean 
a  defined  section  of  a  division, 

8ec.  3.  The  term  ''  member  of  the  industry ",  as  used  herein, 
includes  any  individual  or  form  of  organization  or  enterprise  en- 
gaged in  any  phase,  or  undertaking  to  perform  any  of  the  functions 
of  the  industry  as  defined  in  Section  1  hereof,  either  as  an  employer 
or  on  his  own  behalf,  including  also  but  without  limitation,  archi- 
tects, engineers,  contractors,  and  subcontractors. 

Sec.  4.  The  term  ''  member  of  the  division  "  or  "  member  of  the 
subdivision  "  includes  any  member  of  the  industry  engaged  in  one  of 
the  divisions  or  subdivisions  of  the  industry  now  or  hereafter 
established. 

Sec.  5.  The  term  "  employee  ",  as  used  herein,  shall  include  any 
person  engaged  in  any  phase  of  the  industr}^,  however  compensated, 
but  excluding  members  of  the  industry. 

Sec.  6.  The  term  "  emploj-er  ",  as  used  herein,  includes  anyone  by 
whom  any  such  employee  is  compensated  or  employed. 

Sec.  T.  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. 

Src.  8.  Tl:e  t;~rm  '•c.Tcctive  date",  as  used  herein,  shall  mean  the 
thirtieth  (3(Jth)  day  after  the  approval  of  this  Code  by  the  Presi- 
dent, provided  that  in  respect  of  a  particular  division  an  earlier 
elfective  date  may  be  specified  in  the  Chapter  applicable  to  such 
division. 

Sec.  9.  The  term  "  sponsors  of  the  Code  "  as  used  herein  means  the 
following  national  associations  of  members  of  the  industry,  which 
ha\e  applied  for  the  apx3roval  of  this  Code  and  signified  their  assent 
thereto : 

1.  Construction  League  of  the  United  States. 

2.  American  Institute  of  Architects. 

3.  American  Society  of  Civil  Engineers. 

4.  Associated  General  Contractors  of  America. 

5.  Internationiil  Society  of  Master  Painters  and  Decorators,  Inc. 

6.  Heating,  Piping  and  Air  Conditioning  Contractors  National 
Association. 

7.  Cement-Gun  Contractors  Association. 

8.  National  Building  Granite  Quarries  Association. 

9.  Contracting  Plasterers  International  Association. 

10.  Tile  and  ]\Iantel  Contnictors  Association  of  America. 

11.  National  Association  of  Master  Plumbers  of  the  U.S. 

12.  National  Elevator  Manufacturing  Industry. 

13.  Hoofing  and  Sheet  ^letal  Industries  Conference. 

14.  jNIason  Contractors  Association  of  the  U.S.  and  Canada. 

15.  American  Road  Builders  Association. 

IG.  National  Association  of  Metal  Furring  and  Lathing  Contractors. 

17.  Asbestos  Contractors  National  Association. 

18.  National  Association  of  Building  Trades  Employers. 

29048" 296-107 34 2 


656 

19.  National  Association  of  Builders  Exchanges. 

20.  American  Construction  Council. 

and  such  other  national  associations  of  members  of  the  industry  as 
shall  in  like  fashion  hereafter  sponsor  additional  chapters  of  this 
Code. 

Sec.  10.  The  term  "  this  Code  "  as  used  herein  shall  mean  and  in- 
clude, unless  the  context  clearly  indicates  otherwise,  all  chapters 
from  time  to  time  included  herein,  together  with  any  modifications 
or  amendments  thereto. 

Si^c.  11.  Population,  for  purposes  of  this  Code,  shall  be  determined 
by  reference  to  the  1930  Federal  Census. 

Article  III — Hours,  Wages,  and  Conditions  or  Employment 

Section  1.  In  each  division  or  subdivision  of  the  industry,  as  de- 
fined in  the  chapter  incorporated  in  this  Code  relating  thereto,  truly 
representative  associations  or  groups  of  employers  and  emploj^ees 
respectively  concerned,  after  proper  notice  and  hearing  and  as  a 
result  of  bona  fide  collective  bargaining,  may  establish  by  mutual 
agreement  (when  approved  by  the  President  as  provided  in  Section 
7  (b)  of  the  Act),  for  a  specifically  defined  region  or  locality  the 
standards  of  hours  of  labor,  rates  of  pay,  and  such  other  conditions 
of  employment,  relating  to  occupations  or  types  of  operations  in 
such  division  or  subdivision,  as  may  be  necessary  to  effectuate  the 
policy  of  Title  I  of  the  Act.  For  the  purposes  of  this  Section,  the 
entire  United  States  may  be  defined  as  a  region.  The  terms  of  such 
an  agreement  between  the  employers  and  employees  of  a  division 
or  subdivision  of  the  industry  shall  not  be  binding  upon  the  em- 
ployers and  employees  of  any  other  division  or  subdivision  of  the 
industry. 

After  the  President  has  approved  any  such  agreement  arrived  at 
within  any  such  division  or  subdivision,  and  after  proper  notice  of 
such  approval,  it  shall  be  deemed  prima  facie  unfair  competition  for 
any  employer  in  such  division  or  subdivision  to  fail  to  com]3ly  with 
the  standards  of  maximum  hours  of  labor,  minimum  rates  of  pay,  or 
other  conditions  of  employment  so  approved  and  prescribed  by  the 
President,  in  respect  of  the  performance  within  the  defined  region  or 
locality  of  the  types  of  operations  concerned;  and  the  failure  of 
such  an  employer  to  desist  from  such  unfair  competition  after  being 
given  due  notice  and  opportunity  to  be  heard,  shall  constitute  a 
violation  of  the  requirements  of  tltis  Code. 

The  Adm'nistrator  shall  establish  one  or  more  Boards  for  each 
division  or  subdivision  of  the  industry  concerned  to  investigate  any 
complaints  of  unfair  competition  as  defined  in  this  Section.  Each 
such  Board  shall  consist  of  two  representatives  each  of  employers 
and  employees  of  the  divis'on  or  subdivision  affected,  selected  by 
the  Administrator  from  nominations  made  by  such  employers  and 
employees  respectively  in  such  manner  as  the  Administrator  may 
approve  or  prescribe,  and  an  impartial  chairman  named  by  the 
Administrator  from  nominations  made  by  the  employer  and  em- 
ployee representatives  selected  to  the  Board.  Each  Board  shall 
give  notice  and  opportunity  to  be  heard  to  each  complainant  and  re- 
spondent and  thereafter  notify  said  parties  of  its  findings  and  report 
them  to  the  Administrator,  as  a  basis  for  appropriate  action  to  en- 


657 

force  the  requirements  of  this  Code.  The  provisions  of  this  Section 
sliall  not  be  construed  to  limit  the  power*  of  the  President,  in  the 
absence  of  such  a  mutual  agreement,  to  exercise  any  authority  con- 
ferred upon  him  under  Section  7  (c)  of  the  Act. 

Sec.  2.  Where  no  applicable  nuitual  agreement,  as  provided  in 
Section  1  of  this  Article,  shall  have  been  approved,  employers  shall 
comply  with  the  following  provisions  as  to  minimum  rates  of  pay 
and  maximum  hours  of  labor. 

A.  No  employee,  excluding  accounting,  office,  and  clerical  em- 
ployees, shall  be  paid  at  less  than  the  rate  of  forty  (40)  cents  per 
hour,  provided,  however,  that  the  provisions  of  this  paragraph  x\. 
shall  not  be  construed  as  establishing  a  minimum  rate  of  pay  for 
other  than  common  or  unskilled  labor;  and  provided  further  that 
such  provisions  shall  not  be  construed  to  authorize  reductions  in 
existing  rates  of  pay. 

No  accounting,  office,  or  clerical  employees  shall  be  paid  at  less  than 
the  rate  of  $15.00  per  week  in  any  city  of  over  500,000  population 
or  in  the  immediate  trade  area  of  such  cit}^ ;  $14.50  per  week  in  any 
city  of  between  250,000  and  500,000  population  or  in  the  immediate 
trade  area  of  such  city;  $14.00  per  week  in  any  city  of  between 
2,500  and  250,000  population  or  in  the  immediate  trade  area  of  such 
city;  and  $12.00  per  week  in  towns  of  less  than  2,500  population. 

The  foregoing  provisions  of  this  paragraph  A  establish  a  minimum 
rate  of  pay  which  shall  apply,  irrespective  of  whether  an  employee  is 
actually  compensated  on  a  time  rate,  piecework,  or  other  basis. 

B.  No  employee  shall  be  permitted  to  work  in  excess  of  forty  (40) 
hours  per  week  or  in  excess  of  eight  (8)  hours  in  any  twenty-four 
(24)  hour  period,  with  the  following  exceptions  and  limitations: 

1.  On  application  of  the  interested  parties  and  after  approval  of 
the  National  Construction  Planning  and  Adjustment  Board  of  Re- 
gional Boards  established  by  it,  an  employee  may  be  permitted  to 
w^ork  forty-eight  (48)  hours  in  any  one  week  when  the  following 
conditions  obtain : 

(a)  On  projects  located  at  points  so  remote  and  inaccessible  that 
camps  or  floating  plants  are  necessary  for  the  housing  or  boarding 
of  a  majority  of  the  labor  employed. 

(b)  On  such  remote  projects,  when  working  time  has  been  lost 
because  of  inclement  weather  or  unavoidable  delays  in  any  one  week, 
it  may  be  made  up  in  the  following  four  weeks. 

(c)  On  projects  in  localities  where  a  sufficient  amount  of  qualified 
labor  is  not  available  in  the  immediate  vicinity  of  the  work. 

2.  The  foregoing  maximum  hours  of  work  shall  not  be  construed 
as  a  minimum,  either  for  a  day  or  for  a  week,  and  if  at  any  time 
in  any  locality  truly  representative  groups  of  employees  in  a  divi- 
sion or  subdivision  of  the  industry,  through  their  chosen  represen- 
tatives, express  by  written  request  to  their  employer  or  employers 
a  desire  to  share  available  work  in  such  division  or  subdivisicm,  the 
number  of  hours  of  work  may  be  reduced  by  mutual  agreement 
between  such  employees  and  their  employer  or  emplo3'^ers.  In  the 
event  of  inability  to  arrive  at  an  agreement  which  will  not  involve 
undue  hardship  on  either  employees  or  employers,  then  such  dif- 
ference, with  the  consent  of  all  parties  in  interest,  may  be  submitted 
to  the  National  Construction  Planning  and  Adjustment  Board  for 


658 

a  decision.  The  National  Board  may  require  the  Regional  Boards 
to  secure  facts  and  full  information  relative  to  such  dispute  and 
submit  the  same  to  the  National  Board  for  its  information. 

It  is  not,  however,  the  intent  of  this  provision  that  any  such 
reduction  will  be  recommended  by  the  National  Board  to  be  put 
into  effect  if  it  appears  probable  that  undue  hardship  might  be 
occasioned  thereby  to  either  employers  or  employees. 

3.  The  following  classes  of  employees  are  exempt: 

(a)  EmjDloyees  engaged  in  professional,  executive,  or  supervisory 
work. 

(b)  Employees  in  establishments  employing  not  more  than  two 
(2)  persons  in  towns  of  less  than  2,500  population,  which  towns 
are  not  part  of  a  larger  trade  area. 

(c)  Emploj'ees  engaged  in  emergency  work,  involving  breiak- 
downs  or  protection  of  life  or  property. 

^d)  Watchmen. 

(e)  Other  employees  who  may  be  exempted  in  chapters  of  this 
Code  specifically  applicable  only  to  the  divisions  or  subdivisions  of 
the  industry  therein  defined. 

4.  Accounting,  clerical  or  office  employees  may  be  permitted  to 
work  not  in  excess  of  forty  (40)  hours  per  week  averaged  over  a 
period  of  four  consecutive  weeks. 

C.  No  employer  shall  knowingly  permit  any  employee  to  work 
for  a  total  number  of  hours  in  excess  of  the  hours  herein  pre- 
scribed, whether  employed  by  one  or  more  employers. 

Sec.  3.  Wliere  provisions  concerning  hours  of  labor  or  rates  of 
pay  have  been  established  for  specific  projects,  by  competent  gov- 
ernmental authority  or  agencies  (whether  Federal,  State,  or  politi- 
cal subdivisions  thereof)  acting  in  accordance  with  law,  any  em- 
ployer required  to  comply  and  complying  with  the  provisions  so 
established  shall  be  relieved  of  compliance  with  any  conflicting 
provisions  of  this  Article  or  of  any  actions  taken  in  accordance 
therewith. 

Any  employer  required  to  comply  and  complying  with  the  pro- 
visions of  a  valid  labor  agreement  in  force  on  the  effective  date  shall 
be  relieved  to  the  extent  of  his  legal  obligations  thereunder  of  com- 
pliance during  the  period  of  such  agreement,  with  any  conflicting 
provisions  of  this  Article,  or  of  any  actions  taken  in  accordance 
therewith. 

Sec.  4.  Minwvmn  age. — No  employer  shall  employ  any  person 
under  the  age  of  sixteen  (16)  years,  or  under  the  age  of  eighteen 
(18)  years  in  any  occupation  hazardous  in  nature  or  dangerous  to 
health. 

Sec.  5.  Construction  Planning  and  Adjustment  Boards. — There 
shall  be  established  within  thirty  (30)  days  from  the  effective  date 
of  this  Code,  a  National  Construction  Planning  and  Adjustment 
Board,  and  said  Board  shall  consist  of  twenty-one  (21)  persons,  ten 
of  whom  shall  be  selected  by  the  Industrial  Advisory  Board  of  the 
National  Recovery  Administration  from  nominations  of  the  Con- 
struction Code  Authority  and  ten  shall  be  selected  by  the  Labor 
Advisory  Board  of  the  National  Recovery  Administration  from 
nominations  of  the  construction  employee  organizations,  the  selec- 
tion in  each  case  to  be  subject  to  the  approval  of  the  Administra- 


659 

tor,  and  one  person  to  act  as  disinterested  chairman  to  be  selected 
by  the  President  upon  the  recommendation  of  the  Administrator. 

The  National  Construction  Planning  and  Adjustment  Board  shall 
have  for  its  fundamental  purpose  the  planning  and  the  development 
of  policies  that  embrace  the  broad  spirit  of  cooperation  and  good 
will  in  the  furtherance  of  all  matters  that  relate  to  the  promotion 
of  better  relations  between  employers  and  employees  within  the  in- 
dustry and  the  furtherance  of  other  matters  of  their  mutual  interest. 
It  shall  have  the  authority  upon  its  own  motion  to  select  technical 
advisers  and  seek  the  cooperation  of  all  factors  involved  in  the 
stabilization  and  promotion  of  the  well-being  of  both  employers  and 
employees  in  the  industry  and  shall  have  the  authority  to  make  such 
rules  and  regulations  for  its  own  conduct  as  it  may  deem  necessary. 

It  shall,  in  its  own  discretion,  following  the  submission  by  consent 
of  all  parties  in  interest  of  any  difference  within  or  between  any  di- 
visions or  subdivisions  of  the  industry,  give  consideration  and  make 
determinations  on  all  such  differences  as  may  arise  relating  to  wages, 
hours  of  employment,  and  working  conditions.  The  decisions  of  the 
National  Construction  Planning  and  Adjustment  Board  shall  be 
final  and  binding  on  all  parties  in  interest,  except  that  in  the  event 
the  representative  of  the  Government,  the  disinterested  chairman, 
shall  dissent  from  the  conclusion,  the  decision  shall  be  held  in  abey- 
ance until  approval  or  disapproval  has  been  given  by  the  Admin- 
istrator. 

The  National  Construction  Planning  and  Adjustment  Board  shall 
have  the  authority,  and  upon  its  own  motion  shall  establish  in  prop- 
erly defined  areas,  Eegional  Construction  Planning  and  Adjustment 
Boards,  and  said  Boards  shall  be  composed  of  an  equal  number  of 
members  from  employer  groups  and  emploj^ee  groups,  and  it  is  fur- 
ther provided  that  there  shall  be  no  disinterested  or  impartial 
chairmen  of  said  Regional  Boards,  it  being  provided  that  such 
Boards  shall  select  from  their  members  a  chairman  and  a  secretary. 
The  National  Construction  Planning  and  Adjustment  Board  shall 
upon  its  own  motion  submit  to  the  Regional  Boards  such  problems 
for  study  as  may  in  the  opinion  of  the  National  Board  be  necessary 
and  such  reports  of  the  Regional  Boards  shall  be  submitted  to  the 
final  examination  of  the  National  Board. 

To  these  Regional  Construction  Plamiing  and  Adjustment  Boards 
may  be  submitted  matters  from  their  respective  areas  in  disputes 
having  the  same  relationship  as  matters  to  be  submitted  to  the 
National  Board,  and  every  effort  on  their  part  shall  be  made  to 
reconcile  such  existing  differences,  with  the  requirement  that  their 
actions  shall  in  all  instances  be  submitted  to  the  National  Board  for 
final  action. 

Nothing  in  this  section  shall  be  construed  as  preventing  employers 
and  emploj^ees  in  any  division  or  subdivision  of  the  industry,  as 
defined  in  the  chapter  incorporated  in  this  Code  relating  thereto, 
from  submitting  to  the  Boards  provided  for  in  Article  III,  Section 
1,  or  other  Boards  similarly  composed  and  selected  for  consideration 
and  determination,  differences  that  may  arise  relating  to  wages, 
hours  of  employment,  and  working  conditions,  subject  to  the  ap- 
proval of  the  Administrator.    The  findings  of  fact  and  determina- 


660 

tion  of  such  Boards  shall  be  submitted  to  the  National  Board  for  its 
information. 

The  cost  of  conducting  the  National  and  Regional  Boards  herein 
provided  for,  shall  be  borne  by  the  Construction  Code  Authority, 
subject  to  a  budget  submitted  to  and  approved  by  it,  provided,  how- 
ever, that  the  cost  of  the  services  and  the  expenses  of  the  members 
of  said  Boards,  shall  not  be  paid  by  such  Authority. 

Article  IV — Administration 

To  further  effectuate  the  policies  of  the  Act  and  to  administer 
this  Code  within  the  Industry  and  its  divisions  and  subdivisions, 
there  shall  be  established  a  Construction  Code  Authority,  and  Divi- 
sional Code  Authorities,  and  other  administrative  agencies  as  here- 
inafter provided: 

A.   CONSTRUCTION  CODE  AUTHORITY 

Section  1.  The  Construction  Code  Authority  shall  consist  of  one 
member  selected  from  and  appointed  by  each  of  the  sponsors  of 
this  Code,  enumerated  in  Article  II,  Section  9  hereof  as  sponsoring 
this  Code  as  originally  submitted  to  the  President  for  his  approval ; 
except  that  the  Associated  General  Contractors  of  America  may  ap- 
point thereto  not  more  than  four  (4)  members,  one  of  such  members 
to  be  selected  respectively  from  each  of  the  following  component 
membership  groups  of  said  organization :  Building  Construction, 
Highway  Construction,  Railroad  Construction,  Public  Works,  and 
other  types  of  construction  not  heretofore  specifically  enumerated; 
together  with  not  more  than  three  nonvoting  members  to  be  ap- 
pointed by  the  Administrator  to  act  as  his  representatives.  To  the 
Construction  Code  Authority  as  so  constituted  and  established  there 
may  be  designated  not  more  than  one  additional  member  in  respect 
of  each  additional  chapter  hereafter  incorporated  herein,  provided 
that  no  such  additional  member  shall  be  selected  by  any  association 
enumerated  in  Article  II,  Section  9  hereof.  The  method  for  the 
selection  of  each  such  additional  member  shall  be  described  in  the 
corresponding  additional  chapter.  The  term  of  such  appointments 
shall  not  exceed  two  years,  except  that,  in  the  event  of  code  con- 
tinuance beyond  the  limit  now  established  by  law,  terms  may  be 
readjusted  to  insure  overlapping  tenures  of  office  pursuant  to  a 
plan  or  method  approved  by  the  Administrator.  Voting  members 
are  subject  to  replacement  by  the  selecting  agency  with  the  approval 
of  the  Administrator. 

Sec  2.  The  Construction  Code  Authority,  acting  as  a  unit  or 
through  any  designated  committee  or  department  created  by  it  from 
its  membership,  shall  have,  in  addition  to  any  other  powers  or  duties 
herein  conferred  upon  it,  the  following  powers  and  duties : 

(a)  It  may  establish  rules  and  regulations  for  the  conduct  of  its 
affairs;  and  may  appoint  such  committees,  agencies,  and  representa- 
tives, and  delegate  to  them  such  of  its  powers  and  duties  as  it  may 
deem  necessary  for  the  proper  discharge  of  its  functions  hereunder. 

(b)  It  shall  be  empowered  to  cooperate  with  the  Administrator  in 
making  investigations  and  surveys  concerning  the  functioning  of  this 


661 

Code,  the  observance  of  its  provisions  and  other  pertinent  matters 
whether  at  the  reciuest  of  the  Administrator  or  otherwise,  and  re- 
port its  findings  and  recommendations  to  the  Administrator. 

(c)  It  shall  collect  from  members  of  the  industry  and  compile  and 
furnish  to  the  Administrator  any  reports  and  other  information 
required  under  the  Act.  Except  as  may  be  required  for  the  effective 
enforcement  of  the  provisions  of  this  Code  the  reports  of  individual 
members  of  the  Industry  required  under  this  Code  shall  be  confi- 
dential and  only  compiled  summaries  of  such  individual  reports  shall 
be  furnished. 

(d)  In  order  to  collect  the  information  for  the  Administrator 
herein  called  for,  it  may  require,  either  directly  or  through  any  Di- 
visional Code  Authority,  the  registration,  in  such  manner  as  it  may 
deem  appropriate,  of  all  construction  work  or  services  of  or  in  ex- 
cess of  $2,000  in  value,  and  in  order  to  defray  the  expenses  of  such 
registration  and  of  the  administration  of  this  Code  may  apportion 
such  expenses  on  the  basis  of  the  value  of  the  work  or  services  so 
registered,  but  in  no  case  shall  the  charge  be  less  than  $2.00.  The 
proceeds  derived  therefrom  shall  be  apportioned  upon  an  equitable 
basis  between  the  Construction  Code  Authority  and  such  Divisional 
Code  Authorities  as  shall  cooperate  in  procuring  the  registration  of 
such  work  or  services. 

(e)  It  may  propose  modifications  of  or  amendments  to  the  general 
provisions  of  this  Code  which,  after  submission  to  the  Divisional 
Code  Authorities  affected  thereby,  may  be  recommended  to  the  Presi- 
dent for  his  approval,  and  upon  such  approval,  following  such  notice 
and  hearing  as  he  may  prescribe,  shall  have  full  force  and  effect  as 
provisions  hereof. 

(f )  It  ma}^  exercise  the  foregoing  powers  and  duties  in  any  di- 
vision of  the  industry  for  which  no  Divisional  Code  Authority  shall 
have  been 'established;  and,  if  in  its  opinion  the  policies  of  the  Act 
require,  it  may  recommend  to  the  Administrator  that  an  additional 
chapter  of  this  Code  be  established  for  any  such  division  of  the 
industry. 

(g)  Its  members  or  authorized  representatives  may  attend  meet- 
ings of  any  Divisional  Code  Authority,  and  it  may  at  any  time 
make  appropriate  recommendations  to  the  Administrator  to  insure 
the  proper  functioning  or  representative  character  of  any  such 
Divisional  Code  Authority. 

(h)  It  may  secure  an  equitable  and  proportionate  payment  of  the 
expenses  of  its  establishment,  maintenance,  and  activities  from  mem- 
bers of  the  industry. 

B.   DI\T[SI0NAL  CODE  AUTHORITIES 

Section  1.  There  shall  be  established  for  each  division  of  the 
industry  a  Divisional  Code  Authority  which  shall,  within  the  limi- 
tations provided  herein,  administer  within  such  division,  this  Code 
and  the  provisions  of  any  cha])ter  hereof  applicable  s])ecifically  to 
such  division.  The  procedure  for  establishing  each  such  Divisional 
Code  Authority  shall  be  defined  in  the  chapter  pertaining  to  that 
division  of  the  industi-y.  The  nonvoting  niombprs  appointed  bv  the 
Administrator  to  the  Construction  Code  Authority  (or  their  proxies 


662 

appointed  by  the  Administrator)   may  serve  in  like  capacity  with 
respect  to  any  Divisional  Code  Authority. 

Sec.  2.  Each  such  Divisional  Code  Authorit}^  shall,  in  addition  to 
any  other  powers  and  duties  conferred  upon  it  in  the  chapter  applica- 
ble to  its  division,  have  the  following  powers  and  duties : 

(a)  It  may  establish  rules  and  regulations  for  the  conduct  of  its 
affairs  and  may  appoint  such  committees,  agencies,  and  representa- 
tives and  delegate  to  them  such  of  its  powers  and  duties  as  it  may 
deem  necessary  for  the  proper  discharge  of  its  functions  hereunder. 

(b)  It  shall  cooperate  with  the  Administrator  and  with  the 
Construction  Code  Authority  in  making  investigations  as  to  the 
functioning  and  observance  of  an}^  provisions  of  this  Code,  at  its  own 
instance  or  on  complaint  of  any  person  affected,  and  shall  collect 
from  members  of  tlie  industry  and  compile  and  furnish  to  tlie  Ad- 
ministrator, and  to  the  Construction  Code  Authority,  any  rej^orts 
and  other  information  required  under  the  Act.  Except  as  may  be 
required  for  the  effective  enforcement  of  the  provisions  of  this  Code 
the  reports  of  individual  members  of  the  division  rec|uired  shall  be 
confidential  and  only  compiled  summaries  of  such  individual  re- 
ports shall  be  furnished. 

(c)  It  shall  study  the  provisions  incorporated  in  this  Code  ap- 
plicable to  its  own  division,  and  the  operation  thereof,  and  after 
submission  to  the  Construction  Code  iVuthority  may  make  such  rcc- 
onnnendations  to  the  Administrator  as  it  deems  desirable  for  modi- 
fication or  addition  thereto.  Such  recommendations,  upon  approval 
of  the  Administrator  after  sucli  notice  and  hearing  as  he  may  pre- 
scribe, shall  become  a  part  of  this  Code  and  have  full  force  and  effect 
as  provisions  hereof. 

(d)  It  shall  receive  and  so  far  as  possible  adjust  all  complaints  as 
to  trade  practices  between  members  of  its  division  in  the  operation 
of  the  provisions  of  this  Code  applicable  to  its  division. " 

(e)  It  may  secure  an  equitabJe  and  proportionate  payment  of  the 
expenses  of  its  establishment,  maintenance,  and  activities  from  mem- 
bers of  its  division  of  the  industry. 

C.    REPRESENTATION   AND    MEMBERSHIP 

Section  1.  In  order  that  the  Construction  Code  Authority  and  the 
Divisional  Code  Authorities  shall  at  all  times  be  truly  representative, 
resj>ectivel3^,  of  the  industry  and  of  the  divisions,  and  in  other  re- 
speits  comply  with  the  provisions  of  the  Act,  the  Administrator 
may  provide  such  hearings  as  he  may  deem  appropriate ;  and  there- 
after, if  he  shall  find  that  the  Construction  Code  Authority  or  any 
Divisional  Code  Authority,  is  not  truly  representative  or  does  not 
in  other  respects  comply  v.ith  the  provisions  of  the  Act,  he  may 
require  an  appropriate  modification  in  the  method  of  selection  of 
the  Construction  Code  Authority,  or  of  any  Divisional  Code  Au- 
thority, as  the  case  nuiy  be. 

Sec,  2.  The  sponsors  of  this  Code  who  participate  in  the  selection 
of  any  Code  Authority  or  administrative  agency  provided  for  herein, 
shall  submit  to  the  Administrator  true  copies  of  their  Articles  of 
Association  or  Incorporation,  Constitution  and  Bj^-Laws,  and  other 
pertinent  rules  and  regulations  and  any  amendments  when  made 


663 

thereto,  together  with  such  other  information  as  to  organization, 
membership,  and  activities  as  the  Administrator  may  deem  necessary. 

In  addition  to  the  information  required  to  be  submitted  by  mem- 
bers of  the  industry  or  its  divisions  under  this  Code,  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.  Except  as  may  be  required  for  the 
effective  enforcement  of  the  provisions  of  this  Code,  the  reports  of 
individual  members  of  the  industry  required  under  this  Code  shall 
be  confidential  and  only  compiled  summaries  of  such  individual 
reports  shall  be  published. 

Nothing  contained  in  this  Code  shall  constitute  the  members  of 
the  industry  or  the  members  of  the  Construction  Code  Authority 
or  of  a  Divisional  Code  Authority,  or  any  commHtee  or  agency 
thereof  partners  for  any  purpose.  No  member  of  the  industry  shall 
be  liable  in  any  manner  to  anj^one  for  any  act  of  any  other  member 
of  the  industry,  or  any  agent  or  employee  thereof  pursuant  to  this 
Code.  No  member  of  such  a  Code  Authority,  committee,  or  agency 
shall  be  liable  in  any  manner  to  anyone  for  any  act  of  any  other 
member,  officer,  agent,  or  employee  of  such  Code  Authority,  com- 
mittee, or  agency.  Nor  shall  any  member  of  any  such  Code  Author- 
ity, committee,  or  agency,  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  mis- 
feasance or  nonfeasance. 

Article  V — Appeals 

Section  1.  The  Construction  Code  Authority  shall  establish,  under 
rules  and  regulations  prescribed  by  and  subject  to  the  approval  of  the 
Administrator,  a  suitable  agency  to  be  knov^'n  as  the  Construction 
Appeals  Board,  to  consist  of  one  architect,  one  professional  engineer, 
three  general  contractors  and  four  special  contractors. 

Sec.  2.  The  Construction  Appeals  Board  shall  hear  and  determine 
the  appeals  referred  to  in  Section  3  of  this  Article  and  shall  like- 
wise be  empowered  to  determine,  in  the  event  of  a  conflict  between  the 
provisions  of  the  various  chapters  hereof,  applicable  to  specific  divi- 
sions or  subdivisions  of  the  industry,  which  of  such  chapter  provisions 
shall  govern. 

Sec.  3.  Any  interested  party  shall  have  the  right  of  complaint 
to  the  appropriate  Divisional  Code  Authority  established  for  any 
division  of  the  industry,  and  of  a  prompt  hearing  and  decision  in 
respect  of  any  decision,  rule,  regulation,  order  or  finding  made  by 
such  Authority  or  its  committees  or  agencies,  under  such  rules  or 
regulations  as  may  be  prescribed  therefor  and  the  decision  of  said 
Authority  thereon  may  be  appealed  by  any  interested  party  to  the 
Construction  Appeals  Board. 

Sec.  4.  Any  interevsted  party  sliall  have  the  right  of  appeal  to 
the  Administrator,  under  such  rules  and  regulations  as  he  may  pre- 
scribe, in  respect  of  any  decision,  rule,  regulation,  order  or  finding 
made  by  the  Construction  Code  Authority  or  the  Construction 
Appeals  Board. 


664 

Sec.  5.  No  decision,  rule,  regulation,  order  or  finding  shall  be 
made  by  any  Code  Authority  or  other  administrative  agency,  ex- 
cluding the  Boards  provided  for  in  Article  III  hereof,  provided 
for  in  or  pursuant  to  this  Code,  whether  made  pursuant  to  the 
foregoing  sections  of  this  Article  V  or  otherwise,  of  or  in  any  dispute 
betAveen  employers  and  employees,  or  betAveen  groups  of  employees, 
including,  in  such  last-named  classes  of  disputes,  any  case  or  con- 
troversy whose  determination  would  directly  involve  or  affect  any 
dispute  between  groups  of  employees  as  to  the  right  to  perform 
specific  types  of  work  or  operations,  including  cases  commonly 
l^nown  as  trade  jurisdictional  disputes. 

Article   VI — Adjustments 

In  the  event  that  any  member  of  the  industry  subject  to  this  Code 
shall  have  contracted  before  June  16,  1933,  to  purchase  goods,  struc- 
tures, or  parts  thereof  at  a  fixed  price  for  delivery  after  that  date 
and  prior  to  the  expiration  of  this  Code,  it  is  equitable  and  promo- 
tive of  the  policies  of  the  Act  that  an  appropriate  adjustment  of  said 
price  be  made  to  meet  any  increase  in  cost  to  the  seller  caused  by 
the  seller's  having  signed  the  President's  Reemployment  Agreement 
or  having  become  bound  b}'  any  code  of  fair  competition  approved 
by  the  President;  provided,  however,  that  in  view  of  the  fact  that 
construction  (operations  customarily  involve  the  furnishing  of  various 
goods  and  structures,  or  parts  thereof,  by  a  continuous  series  of 
independent,  long-term  contracts  and  agreements  at  fixed  prices 
between  various  parties,  such  as  owners  (including  goverriment  de- 
partments), contractors,  subcontractors,  and  others,  such  adjust- 
ments may  be  made  contingent  upon  similar  appropriate  adjust- 
ments to  be  made  by  all  other  parties  thus  participating,  from  and 
including  Oie  initial  vendor  of  such  goods  and  structures  or  parts 
thereof  to  and  including  the  owners  of  the  works  or  structure  upon 
which  they  are  used. 

Article  VII — Competitive  Bidding  Practices 

Section  1.  (a)  The  term  "  competitive  bidding  "  as  used  herein 
shall  mean  the  submission  at  or  before  a  definite  predetermined  time 
of  comparable  proposals  by  two  or  more  invited  persons  to  an  award- 
ing authority  to  execute  a  specific  program  of  work,  furnishing  a 
definite  service  or  supplying  a  material  specifically  required  for  a 
particular  project  at  a  stipulated  price.  This  does  not  include  fur- 
nishing quotations  on  standard  products. 

(b)  The  term  "  awarding  authority  "'  as  used  herein  shall  mean  any 
member  of  the  industry  who  may  upon  competitive  bidding  aAvard 
contracts. 

Sec.  2.  (a)  The  practices  commonly  known  as  "  bid  peddling  "  or 
^'  bid  shopping  "  are  recognized  as  unfair  and  are  prohibited.  Bid 
peddling  in  effect  means  the  offering  by  the  bidder  prior  to  the 
making  of  an  award  of  a  substitute  bid  or  price  lower  than  the  one 
originally  bid  without  a  commensurate  decrease  in  the  requirements 
of  the  job.  The  correction  of  the  abuses  resulting  from  such  practice 
is  obtainable  b}'  regulation  restricting  or  controlling  bidders. 


665 

(b)  Bid  shopping  in  cfTcct  means  the  effort  on  the  part  of  the 
awarding  autiiority  to  induce  a  bidder  prior  to  tlie  making  of  tlie 
award  to  lower  his  original  bid  price  without  a  commensurate  de- 
crease in  the  requirements  of  the  job.  The  correction  of  the  abuses 
resulting  from  such  practice  is  obtainable  by  regulation  restricting 
or  controlling  the  awarding  authority. 

Sec.  8.  (a)  Since  it  is  recognized  that  the  preparation  of  a  bid 
is  a  service  involving  an  expense  to  the  bidder  and  that  the  inviting 
of  an  unreasonable  number  of  bids  is  an  economic  waste,  the  award- 
ing authority  shall  not  invite  an  unnecessary  number  of  bids. 

(b)  Only  a  limited  number  of  alternate  proposals  shall  be  required 
in  connection  with  any  bid.  and  no  alternate  proposal  of  a  bidder 
shall  be  considered  by  the  awarding  authority,  unless  the  privilege 
of  alternate  proposals  is  extended  to  all  bidders. 

Si:c.  4.  The  awarding  authority  shall  make  available  uniformly  to 
all  bidders,  plans  and/or  specifications  or  other  requisite  information 
which  shall  be  sufHciently  complete  to  enable  each  bidder  to  prepare 
a  definite  bid  in  accordance  with  the  regulations  herein  provided 
for.  He  shall  prescribe  terms  of  competition  which  shall  insure 
parity  of  standing  to  all  bidders. 

Sec.  5.  The  awarding  authority  shall  not  invite  bids  from  a  bidder 
unless  such  bidder  shall  have  demonstrated  to  the  satisfaction  of  the 
awarding  authority  that  he  is  competent  technically  and  financially 
to  jerform  the  work,  nn'l  the  ability  of  a  bidder  to  obtain  a  per- 
formance bend  shall  not  be  regarded  as  the  sole  test  of  such  bidder's 
competency. 

Sec.  6.  An  award  if  made  shall  be  made  at  the  bidder's  original 
bid  jirice.  It  is  recognized  tiiat  competition  based  solelv  on  price 
is  sometimes  unfair  and  accordingly  the  awarding  authority  may 
make  an  award  to  a  competitive  bidder  other  than  the  lowest  bidder 
provided  the  award  is  made  at  such  com])etitor's  original  bid  price. 

Sec.  7.  The  awarding  authority  shall  designate  a  specific  hour  and 
place  for  receiving  competitive  bids.  All  bids  to  be  submitted  by 
subcontractors  shall  be  delivered  to  the  contractor  at  least  24  hours 
prior  to  the  time  set  for  the  receipt  of  the  bid  of  said  contractor  by 
the  awarding  authority.  Bids  received  after  such  time  or  from  un- 
invited bidders  shall  be  returned  unopened.  All  bills  shall  be  re- 
quired to  be  signed  by  a  duly  authorized  representative  of  the  bidder 
and  enclosed  in  a  sealed  enveloj^e  on  the  outside  of  which  shall 
appear  its  identification  as  a  bid  for  the  particular  job. 

Sec.  8.  The  awarding  authority  shall  not  at  any  time  prior  to  the 
specified  time  for  the  receipt  of  bids  convey  to  any  bidder  informa- 
tion relating  to  the  price  or  terms  of  any  other  bid  in  order  to 
influence  the  price  or  terms  of  such  bidder. 

Sec.  9.  There  shall  be  no  collusion  between  the  awarding  authority 
and  any  bidder,  nor  between  the  different  bidders  in  the  preparation 
of  any  bid.  The  awarding  authority  shall  not  use  any  bid  which  is 
so  undulv  low  as  to  indicate  an  error  or  mistake  in  estimating  with- 

a.  _  ~ 

out  first  giving  the  bidder  the  opportunity  of  demonstrating  by  cost 
sheets  or  other  methods  the  correctness  of  the  bid  that  he  has 
submitted. 

Sec.  10.  The  awarding  authority  shall  make  an  award  or  reject 
all  bids  for  the  principal  contract  with  the  owner  within  twenty 


eee 

(20)  days  after  the  stipulated  time  for  the  receiving  of  bids  except 
where  an  extension  of  time  has  been  requested  from  the  bidders  and 
has  been  consented  to  by  two  or  more  bidders.  In  the  case  of  bids 
conditioned  upon  the  award  of  a  previous  contract,  each  succeed- 
ing awarding  authority  shall  make  an  award  or  reject  all  bids  within 
thirty  (30)  days  after  the  award  of  such  previous  contract  except 
as  to  such  bidders  as  shall  agree  to  an  extension  of  time.  The  right 
to  reject  any  or  all  bids  may  be  reserved  by  the  awarding  author- 
ity, and  such  rejection  shall  be  made  in  writing.  Where  all  bids 
are  rejected,  bids  shall  not  be  again  invited  or  submitted  for  the 
mere  purpose  of  obtaining  a  lower  or  revised  price  or  prices  for 
substantiall}^  the  same  work  previous  to  the  elapse  of  ninety  (90) 
days  from  the  date  of  such  rejection,  except  there  be  a  substantial 
change  in  the  plans  and/or  specifications,  or  except  there  be  evi- 
dence of  collusion,  or  except  there  be  such  a  marked  difference  be- 
tween the  bids  submitted  and  the  awarding  authority's  estimate  as 
to  the  valuation  of  the  work  as  would  indicate  to  the  awarding 
authority  and  his  Code  Authority  the  necessity  of  new  bids  in  order 
to  secure  fair  competition. 

Sec.  11.  Before  making  an  award  the  awarding  authority  may 
require  any  bidder  to  name  the  subcontractors  whom  such  bidder 
intends  to  employ  for  the  various  divisions  of  the  work  bid  upon. 

Sec.  12.  The  awarding  authority  shall  not  accept  rebates,  refunds, 
discounts,  or  other  special  allowances  or  services  from  a  bidder 
unless  included  by  the  bidder  in  his  original  bid. 

Sec.  13.  The  various  divisions  and  subdivisions  of  the  industry 
may  provide  in  the  chapters  specifically  applicable  to  such  divisions 
or  subdivisions  that  members  of  the  division  or  subdivision  shall  not 
submit  a  competitive  bid,  as  defined  in  Section  1  (a)  of  this  Article, 
to  an  owner  or  any  other  person,  corresponding  to  an  awarding 
authority  as  herein  defined  unless  such  owner  or  other  person  agi'ees 
to  comply  with  the  regulations  provided  herein  governing  an  award- 
ing authority. 

Sec.  14.  In  order  to  enforce  the  practice  of  fair  competitive  bid- 
ding, the  Divisional  Code  Authorities  shall  provide,  if  no  such 
method  is  provided  in  the  chapter  applicable  to  such  division,  a 
method  satisfactory  to  the  Consti'uction  Code  Authority  for  check- 
ing bids  submitted  by  members  of  such  division  either  by  designat- 
ing a  depository  for  the  filing  of  duplicate  bids  or  by  some  other 
acceptable  method.  The  Construction  Code  Authority  may  require 
such  changes  in  any  such  method  as  may  be  necessary  to  prevent 
conflict  between  the  various  methods  which  may  be  adopted  by  the 
various  Divisional  Code  Authorities. 

Article  VIII — General 

Section  1.  Employees  shall  have  the  right  to  organize  and  bargain 
collectively  through  representatives  of  their  own  choosing,  and  shall 
be  free  from  the  interference,  restraint,  or  coercion  of  employers  of 
labor,  or  their  agents,  in  the  designation  of  such  representatives  or 
in  self-organization  or  in  other  concerted  activities  for  the  purpose  of 
collective  bargain'ng  or  other  mutual  aid  or  protection;  no  em]:)loyee 
and  no  one  seeking  employment  shall  be  required  as  a  condition  of 


667 

employnipnt  to  join  any  company  union  or  to  refrain  from  joining, 
or<ranizinir,  or  assisting  a  labor  organization  of  his  own  choosing; 
employers  shall  comply  with  the  maximum  hours  of  labor,  minimum 
rates  of  pa}',  and  other  conditions  of  employment,  approved  or  pre- 
scribed by  the  President. 

Sec.  2.  Employers  shall  not  reclassify  employees  or  duties  of  occu- 
pations performed  by  employees  with  the  intent  or  for  the  purpose 
of  defeating  the  purposes  of  the  Act. 

Sf.c.  3.  No  provisions  of  this  Code  shall  supersede  any  State  or 
Federal  law  imposing  more  stringent  requirements  on  emploj'ers  reg- 
ulating the  age  of  emploj^ees,  wages,  hours  of  work,  or  iiealth,  fire, 
or  general  working  conditions  than  those  contained  in  this  Code. 

Sec.  4.  No  pruvision  of  this  Code  shall  be  so  construed  or  applied 
as  to  permit  or  promote  a  monopoly  or  monopolistic  practice,  or  to 
eliminate  or  oppress  or  discriminate  against  small  enterprises. 

Sec.  ;■).  Additional  chapters  to  this  Code  may  be  submitted  to  the 
Construction  Code  Authority  for  submission  b}'  it  for  the  approval 
of  the  President  but  nothing  contained  herein  shall  be  construed  to 
prevent  any  representative  association  or  group  from  submitting  any 
such  cha})ter  directly  to  the  President  for  his  approval,  provided  tliat 
the  Construction  Code  Authority,  if  then  established,  shall  be  given 
an  ample  opjwrtunity  to  consider  and  examine  any  such  chapter 
prior  to  its  submission  to  the  President  to  the  end  that  there  may  be 
proper  coordination  within  the  industry  and  between  its  various 
divisions  and  subdivisions.  Upon  approval  by  the  President,  such 
chapter  shall  become  an  integral  part  of  this  Code  the  same  as  if 
oriLTinally  included  herein,  but  any  exceptions  therein  to  the  general 
provisions  of  this  Code  shall  apply  only  to  the  members  of  the  di- 
vision, or  subdivision  of  the  industry  to  which  such  chapter  per- 
tains. No  specific  provisions  of  this  Code  applicable  to  its  amend- 
ment or  modification  shall  constitute  a  limitation  upon  any  right 
to  pro]K)se  such  amendments  or  modifications  which  may  be  con- 
ferred by  the  Act. 

Sec.  6.  This  Code,  and  all  the  provisiojis  thereof,  and  of  any  chap- 
ter 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,  ap- 
proval, license,  rule,  or  regulation  issued  under  Title  I  of  the  Act 
and  specifically,  but  without  limitation,  to  the  right  of  the  President 
to  cancel  or  modify  his  approval  of  this  Code,  or  of  any  additional 
chapter  thereof,  or  any  conditions  imposed  by  him  upon  such 
approval. 


Approved  Code  No.  244. 
Registry  No.  161&-2-31. 


O 


i 


f^;^ 


AMENDMENTS 


40121—34 2 


Approved  Code  No.  17 — Amendment  No.  2 
AMENDMENT  TO  CODE  OF  FAIR  COMPETITION 

FOR  THE 

AUTOMOBILE  MANUFACTURING  INDUSTRY 

As  Approved  on  January  8,  1934 


ORDER 


Amending  Code  of  Fair  Competition  for  the  Automobile  Manu- 
facturing Industry 

An  application  having  been  duly  made  in  behalf  of  the  Automo- 
bile Manufacturing  Industry,  pursuant  to  and  in  full  compliance 
with  the  provisions  of  Title  I  of  the  National  Industrial  Recovery 
Act,  approved  June  16,  1933,  and  the  provisions  of  the  Code  of  Fair 
Competition  for  the  Automobile  Manufacturing  Industry  duly 
approved  on  August  26,  1933,  and  amended  on  December  18,  1933, 
for  approval  of  a  further  amendment  to  said  Code  of  Fair  Competi- 
tion for  the  Automobile  Manufacturing  Industry;  and  an  analysis, 
report,  recommendation,  and  findings  on  said  proposed  amendment 
by  the  Administrator  directed  to  the  President  having  been  made, 
which  are  incorporated  herein  by  reference ;  and  it  being  found  that 
said  proposed  amendment  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  requirements  of  Clauses  (1)  and  (2) 
of  subsection  (a)  of  Section  3  of  said  Act  have  been  met;  and 

It  being  likewise  found  that  said  proposed  amendment  complies 
with  the  terms  of  an  understanding  reached  pending  approval  of 
the  original  Code  of  Fair  Competition  for  said  Industry,  between 
the  duly  authorized  representatives  of  said  Industry  and  the  Admin- 
istrator, to  the  effect  that  in  the  event  that  the  expiration  date  of 
said  original  Code  as  approved  should  be  deferred  to  one  year  from 
the  effective  date  thereof,  the  provisions  of  said  original  Code  in 
regard  to  hours  of  employment  would  be  subjected  to  reconsid- 
eration ; 

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  by  Executive  Order,  includ- 
ing Order  dated  December  30,  1933,  and  otherwise,  it  is  ordered  that 
the  said  application  be  and  it  hereby  is  approved,  and  that,  effective 
immediately,  the  said  Code  of  Fair  Competition  for  the  Automobile 
Manufacturing  Industry,  as  amended  on  December  18,  1933,  be  and 
it  hereby  is  further  amended  in  the  name  of  the  President  in  the 
following  particulars : 

(669) 


670 

1.  In  article  III,  the  fifth  paragraph,  which  has  heretofore  read 
as  follows : 

"  For  this  purpose  it  is  made  a  provision  of  this  Code  that 
employers  shall  so  operate  their  plants  that  the  average  em- 
ployment of  all  factor}^  employees  (with  exceptions  stated  be- 
low) shall  not  exceed  thirty-five  hours  per  week  for  the  period 
from  the  effective  date  to  the  expiration  date,  and  the  hours 
of  each  individual  employee  shall  so  far  as  practicable  conform 
with  this  average  and  shall  in  no  case  exceed  the  same  by  more 
than  three  percent.", 
shall  be  modified  to  read  as  follows: 

"  For  this  purpose  it  is  made  a  provision  of  this  Code  that 
employers  shall  so  operate  their  plants  that  the  average  em- 
ployment of  each  factory  employee  (with  exceptions  stated 
below)  shall  not  exceed  forty  hours  per  week  for  the  period  from 
the  effective  date  to  the  expiration  date." 

2.  In  Article  III,  the  sixth  paragraph,  which  has  heretofore  read 
as  follows: 

"  In  order  to  give  to  employees  such  average  of  thirty-five 
hours  per  week,  it  will  be  necessary  at  times  to  oj^erate  for 
substantially  longer  hours,  but  no  employee  shall  be  employed 
for  more  than  six  days  or  48  hours  in  any  one  week,  and  all 
such  peaks  shall  be  absorbed  in  such  average." 
shall  be  modified  to  read  as  follows: 

"  In  order  to  give  to  employees  such  average  of  forty  hours 
per  week,  it  will  be  necessary  at  times  to  operate  for  substan- 
tially longer  hours,  but  no  employee  shall  be  employed  for  more 
than  six  days  or  48  hours  in  any  one  week,  and  all  such  peaks 
shall  be  absorbed  in  such  average." 

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

Administrator  for  Industrial  Recovery, 

Approval  recommended: 
K.  M.  Simpson, 

Division  Administrator. 

Washington,  D.C, 

Januainj  8^  1931).. 


REPORT  TO  THE  PRESIDENT 

The  President, 

The  White  House. 

Sir:  The  National  Automobile  Chamber  of  Commerce  has  made 
application  in  behalf  of  the  Automobile  Manufacturing  Industry 
that  the  Code  of  Fair  Competition  for  said  Industry  be  amended  in 
the  following  particulars: 

1.  In  Article  III,  the  fifth  paragraph,  which  has  heretofore  read 
as  follows: 

"  For  this  purpose  it  is  made  a  provision  of  this  Code  that 
employers  sliall  so  operate  their  plants  that  the  average  employ- 
ment of  all  factory  employees  (with  exceptions  stated  below) 
shall  not  exceed  thirty-five  hours  per  week  for  the  period  from 
the  effective  date  to  the  expiration  date,  and  the  hours  of  each 
individual  employee  shall  so  far  as  practicable  conform  with 
this  average  and  shall  in  no  case  exceed  the  same  by  more  than 
three  percent.", 

be  modified  to  read  as  follows : 

"  For  this  purpose  it  is  made  a  provision  of  this  Code  that 
employers  shall  so  operate  their  plants  that  the  average  employ- 
ment of  each  factory  employee  (with  exceptions  stated  below) 
shall  not  exceed  forty  hours  per  week  for  the  period  from  the 
effective  date  to  the  expiration  date." 

2.  In  Article  III,  the  sixth  paragraph,  which  has  heretofore  read 
as  follows: 

"  In  order  to  give  to  employees  such  average  of  thirty-five 
hours  per  week,  it  w^ill  be  necessary  at  times  to  operate  for  sub- 
stantially longer  hours,  but  no  employee  shall  be  employed  for 
more  than  six  days  or  48  hours  in  any  one  week,  and  all  such 
peaks  .shall  be  absorbed  in  such  average.", 
be  modified  to  read  as  follows: 

"  In  order  to  give  to  employees  such  average  of  forty  hours 
per  week,  it  will  be  necessary  at  times  to  operate  for  substantially 
longer  hours,  but  no  employee  shall  be  employed  for  more  than 
six  days  or  48  hours  in  any  one  week,  and  all  such  peaks  shall 
be  absorbed  in  such  average." 
The  reports  received  from  the  manufacturers  operating  under  this 
Code  indicate  that  for  those  manufacturers  who  are  members  of  the 
National  Automobile   Chamber  of  Commerce,  the   resulting  reem- 
ployment in  the  month  of  Sei)tember  of  this  year  has  brought  the 
total  of  employees  above  the  number  of  employees  attached  to  the 
Industry  for  the  same  month  in  any  year  since  1929. 

The  following  table  shows  the  number  of  factory  employees  of 
these  members  from  the  year  1929  to  1983  inclusive : 

September — Year 

1929- 194,  274 

19.30 111,  996 

1931 113, 1S3 

1932 73. 411 

1933 150,  75G 

(671) 


672 

This  table  indicates  that  there  were  77,345  more  workers  em- 
ployed in  September  of  this  year  than  in  September  of  1932,  or  an 
increase  of  approximately  105%,  and  an  increase  of  38,760  workers 
over  the  same  month  in  1930,  or  an  increase  of  approximately  34%. 

While  the  employment  level  of  1929  has  not  been  reached,  it  is  my 
opinion  that  satisfactory  absorption  of  labor  should  not  be  measured 
by  employment  in  that  year  as  there  was  a  substantial  percentage 
of  floating  workers  brought  to  this  Industry  from  their  normal  pur- 
suits, many,  if  not  most  of  whom,  it  is  my  understanding,  have  since 
returned  to  their  former  homes. 

In  addition  the  decrease  in  production  must  be  considered  as  in- 
dicated by  the  fact  that  the  production  in  September  1929  was 
257,517  vehicles  as  compared  with  144,367  in  September  of  this  year, 
a  decrease  of  43%,  while  employment  in  September  of  this  j^ear  is 
only  22%,  below  that  of  September  1929. 

The  contemplated  increase  in  automobile  purchases  in  the  Spring 
of  1934  would,  under  the  present  average  of  thirty-five  hours  per 
week,  probably  result  in  again  attracting  a  considerable  number  of 
men  to  Detroit  and  other  automobile  manufacturing  centers,  who 
would  be  without  jobs  after  the  Spring  period  of  large  production 
had  passed. 

The  above  figures  cover  only  factory  employees  of  manufacturers 
who  are  members  of  the  National  Automobile  Chamber  of  Com- 
merce, since  complete  figures  are  not  available  for  the  entire  Indus- 
try prior  to  the  Code.  The  National  Automobile  Chamber  of  Com- 
merce represents  approximately  78%  of  the  production  capacity  and 
approximately  95%  of  the  manufacturing  units  in  the  Industry. 

For  these  reasons  the  amendment  has  been  approved. 
Respectfully, 

Hugh  S.  Johnson, 

A  d  minis  tra  tor. 

Washington,  D.C, 

January  8,  193 Jf,. 

Approved  Code  No.  17 — Amendment  No.  2 
Registry  No.  1403-1-04. 


Approved  Code  No.  33 — Amendment  No.  1 
AMENDMENT  TO  CODE  OF  FAIR  COMPETITION 

FOR  THE 

RETAIL  LUMBER,  LUMBER  PRODUCTS,  BUILDING 

MATERIALS,     AND     BUILDING 

SPECIALTIES  INDUSTRY 

As  Approved  on  January  12,  1934 


ORDER 


Approving  Modification  of  Code  of  Fair  Competition  for  the 
Retail  Lumber,  Lumber  Products,  Building  Materials,  and 
Building  Specialties  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  modification 
of  the  Code  of  Fair  Competition  for  the  Retail  Lumber,  Lumber 
Products,  Building  Materials,  and  Building  Specialties  Industry,  and 
hearings  having  been  duly  held  thereon  and  the  annexed  report  on 
said  modification,  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  modification  and  the  Code  as  con- 
stituted after  being  modified  comply  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  modification  be  and  it  is 
hereby,  approved,  and  that  the  previous  approval  of  said  Code  is 
hereby  modified  to  include  an  approval  of  said  Code  in  its  entirety  as 
modified. 

Hugh  S.  Johnson, 
Adrmnistrator  for  Industrial  Recovery. 

Approval  recommended:  > 

Malcolm  Muir, 

Division  Administrator. 

Washington,  D.C, 

January  12, 1934.. 

(673) 


REPORT  TO  THE  PRESIDENT 

The  President, 

The  White  House. 

Sir  :  A  Code  of  Fair  Competition  for  the  Retail  Lumber,  Lumber 
Products,  Building  Materials  and  Building  Specialties  Industry- 
was  approved  by  you  on  October  3  and  became  effective  on  October 
13,  1933. 

In  accordance  with  the  provisions  of  your  Executive  Order,  dated 
July  15,  1933.  hearings  have  been  granted  by  me  to  applicants,  who 
alleged  that  they  were  directly  affected  by  the  provisions  of  Article 
VIII,  Section  2,  Subsection  A  of  said  Code,  and  who  claimed  that 
application  thereof  was  unjust  to  them  and  who  applied  for  modi- 
fications thereof. 

In  full  accordance  with  the  provisions  outlined  in  Article  IX, 
Section  6  of  the  aforesaid  Code  for  the  Retail  Lumber,  Lumber 
Products,  Building  Materials  and  Building  Specialties  Industry, 
the  Code  Authority,  an  Agency  established  in  accordance  with  the 
provisions  contained  in  Article  VII,  Section  1  of  said  Code,  made 
application  for  modifications  of  said  Article  VIII,  Section  2,  Sub- 
section A. 

Article  VIII,  Section  2,  Subsection  A  of  said  Code  as  it  appears  in 
the  approved  Code  of  October  3  permits  the  establishment  of  prices, 
terms  and  conditions  of  sale  within  any  trade  area  by  rule  or  regu- 
lation adopted  by  the  appropriate  agency  within  such  trade  area  in 
accordance  with  the  provisions  of  Article  VII,  Section  1,  Paragraph 
2  of  said  Code.  Article  VIII,  Section  2,  Subsection  A  if  revised 
or  amended  as  is  proposed  by  the  suggested  modifications  thereof, 
will  prohibit  the  establishment  of  prices,  t^rms,  and  conditions  of 
sale  within  a  trade  area  adopted  by  rule  or  regulation  of  any  agency 
within  said  trade  area. 

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

I  find  that: 

(a)  The  modification  of  said  Code  and  the  Code  as  modified  are 
well  designed  to  promote  the  policies  and  purposes  of  Title  I  of 
The  National  Industrial  Recovery  Act,  including  the  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  trade  groups,  by  inducing 
and  maintaining  united  action  of  labor  and  management  under  ade- 
quate 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  prod- 
ucts through  increasing  purchasing  power,  by  reducing  and  relieving 

(674) 


675 

unemplojnnent,  by  improving  standards  of  labor,  and  by  otherwise 
rehabilitating  industry. 

(b)  The  Code  as  modified  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. 

(c)  The  Code  empowers  the  Code  Authority  to  present  the  afore- 
said modification  on  behalf  of  the  industry  as  a  whole. 

(cl)  The  modification  and  the  Code  as  modified  are  not  designed 
to  and  will  not  permit  monopolies  or  monopolistic  practices. 

(e)  The  modification  and  the  Code  as  modified  are  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 
modification. 

For  these  reasons,  therefore,  the  proposed  modifications  have  been 
approved. 

Respectfully, 

Hugh  S.  Johnson, 

Administrator. 
January  12,  1934. 


AMENDMENT  TO  THE  CODE  OF  FAIK  COMPETITION 
FOR  THE  RETAIL  LUMBER,  LUMBER  PRODUCTS, 
BUILDING  MATERIALS,  AND  BUILDING  SPECIALTIES 
INDUSTRY 

Subsection  A,  Section  2,  Article  VIII  shall  be  amended  to  read 
as  follows: 

"  2.  Conditions  of  Sale — Estimates  and  Quotations. — ^A.  Within 
ten  (10)  days  after  notice  from  the  Code  Authority,  or  its  duly 
authorized  Agency,  each  dealer  shall  file  with  the  Code  Authority, 
or  such  duly  authorized  Agency  as  it  may  designate,  and  publish 
his  prices  individually  prepared  by  him  but  in  no  event  at  less  than 
the  prices  computed  pursuant  to  the  provisions  of  Section  8  of 
this  Article  and  any  rules  and  regulations  duly  issued  in  relation 
thereto,  terms  and  conditions  of  sale;  thereafter,  no  dealer  shall 
quote,  sell,  or  ofl'er  to  sell  any  product  on  such  terms  and  conditions, 
or  at  such  prices  as  will  result  in  the  purchaser  paying  therefor 
prices  different  from  those  noted  in  such  dealer's  price  list,  or  on 
terms  and  conditions  of  sale  other  than  the  terms  and  conditions  of 
sale  previously  filed  by  such  dealer  with  the  Code  Authority,  in' 
accordance  with  the  provisions  of  this  Article  and  in  effect  at  the 
time,  of  such  sale." 

Approved  Code  No.  33 — ^Amendment  No.  1. 
Registry  No.  313-04. 

(676) 


Approved  Code  No.  47 — Amendment  No.  1 
AMENDMENT  TO  CODE  OF  FAIR  COMPETITION 

FOR 

BANKERS 

As  Approved  on  January  22,  1934 


ORDER 


AprROAiNG  Amkndment  to  Code  of  Fair  Competition  for  Bankers 

An  application  having  been  diilj^  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  attached 
modification  to  the  Code  of  Fair  Competition  for  Bankers,  and  the 
annexed  report  on  said  modification,  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  6543-A,  dated  December  30, 
1933,  and  otherwise,  do  hereby  incorporate,  by  reference,  said  an- 
nexed report  and  do  find  that  said  modification  and  the  Code  as 
constituted  after  being  modified  comply  in  all  respects  with  the  per- 
tinent provisions  and  Avill  promote  the  policy  and  purposes  of  said 
Title  of  said  Act,  and  do  hereby  order  that  said  modification  be  and 
it  is  hereby  approved,  and  that  the  previous  approval  of  said  Code 
is  hereby  modified  to  include  an  approval  of  said  Code  in  its  en- 
tirety as  modified,  such  approval  and  such  modification  to  take  effect 
ten  (10)  days  from  the  date  hereof,  unless  good  cause  to  the  contrary 
is  shown  to  the  Administrator  before  that  time  and  the  Adminis- 
trator issues  a  subsequent  order  to  that  effect. 

Hugh  S.  Johnson, 
AdTninistrator  for  Industrial  Recovery. 

Approval  recommended : 
A.  D.  Whiteside, 

D  iv  ision  A  dministra  tor. 

AVashington,  D.C, 

January  22,  193^. 

(677) 


AMENDMENT  TO  CODE  OF  FAIR  COMPETITION  FOR 

BANKERS 

Article  VII,  Section  1  of  the  Code  of  Fair  Competition  for 
Bankers  shall  be  moclified  to  read  as  follows : 

"(1)  To  effectuate  further  the  policies  of  the  National  Industrial 
Recovery  Act,  a  Banking  Code  Committee  is  hereby  set  up  to  act 
as  a  planning  and  fair-practice  agency  and  to  cooperate  with  the 
Administrator  in  the  administration  and  enforcement  of  this  Code. 
This  Committee  shall  consist  of  not  more  than  twenty-five  (25) 
representatives  of  the  American  Bankers  Association,  who  shall  be 
truly  representative  of  the  membership  of  the  Association,  three  (3) 
representatives  of  the  nonmembers  of  the  American  Bankers  Asso- 
ciation to  be  selected  in  a  manner  approved  by  the  Administrator, 
and  a  representative  or  representatives  without  vote  appointed  by 
the  President  of  the  United  States." 

Approved  Code  No.  47 — Amendment  No.  1. 
Registry  No.  1707-02. 

(678) 


Approved  Code  No.  3 — Amendment  No.  1 
AMENDMENT  TO  CODE  OF  FAIR  COMPETITION 

FOR  THE 

WOOL  TEXTILE  INDUSTRY 

As  Approved  on  January  23,  1934 


ORDER 


Approving  Amendment  to  Code  of  Fair  Competition  for  the 

Wool  Textile  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  amendments 
to  a  Code  of  Fair  Competition  for  the  Wool  Textile  Industry,  and 
hearings  having  been  duly  held  thereon  and  the  annexed  report  on 
said  amendments,  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  amendments  and  the  Code  as 
constituted  after  being  amended  comply  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  amendments  be, 
and  they  are  hereby,  approved,  and  that  the  previous  approval  of  said 
Code  is  hereby  modified  to  include  an  approval  of  said  Code  in  its 
entirety  as  amended, 

Provided,  however,  that  the  Administrator  may  appoint  a  repre- 
sentative or  representatives  upon  each  of  the  Sub-Code  Authorities 
created  under  Article  XII  of  said  amendments,  and 

Provided,  further,  that  if  the  Administrator  shall  determine  that 
any  action  of  a  Code  Authority  or  any  agency  thereof  is  unfair  or 
unjust  or  contrarj^  to  the  public  interest,  the  Administrator  may  re- 
quire 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  action  and  further  consideration  by  such  Code 
Authority  or  agency  pending  final  action,  which  shall  be  taken  only 
upon  approval  by  the  Administrator. 

(679) 


680 

These  amendments  shall  become  effective  ten  (10)  days  after  date 
hereof. 

Hugh  S.  Johnson, 
Administrator  for  Industrial  Recovery. 

Approval  recommended : 

A.  D.  Whiteside, 

Division  Administrator, 

Washington,  D.C, 

January  23^  193^. 


KEPORT  TO  THE  PRESIDENT 


The  President, 

The  White  House. 


Introduction 


Sir  :  This  is  a  report  on  the  Hearing  of  the  Amendments  to  the 
Code  of  Fair  Competition  for  the  Wool  Textile  Industry. 

The  hearing  was  held  in  the  Carlton  Hotel,  Washington,  D.C., 
on  December  8,  1933. 

The  Amendments  were  presented  by  duly  qualified  and  author- 
ized representatives  of  the  above  industry,  complying  with  the  stat- 
utory requirements,  as  represented  by  fully  80  percent  of  the  wool 
textile  machinery  including  both  looms  and  spindles. 

Resume  of  Amendments 

The  amendments  proposed  may  be  classified  into  four  parts: 

I.    CHANGES  TO  BE  MADE  IN  THE  ORIGINAL  CODE 

The  definition  in  the  original  code  is  amended  to  make  the  code 
all  inclusive  of  the  various  divisions  of  the  wool  textile  industry. 

The  original  code  contained  no  method  of  assessing  employer 
for  any  of  the  expenses.  Consequently,  a  provision  is  proposed  so 
that  employers  may  be  assessed  within  the  limits  allowed  by  the 
Recovery  Act. 

A  provision  limiting  the  hours  of  office  employees  is  proposed 
by  changing  the  original  Article  III. 

II.    ADMINISTRATION 

In  the  Executive  Order  dated  July  26,  there  appeared  a  condition 
as  follows : 

"(1)  To  effectuate  further  the  policies  of  the  Act,  a  Wool  Textile 
Industry  Committee  be  created  to  cooperate  with  the  Adminis- 
trator as  a  Planning  and  Fair  Practice  agency  for  the  Wool  Textile 
Industry,  which  Committee  shall  consist  of  five  representatives  of 
the  Wool  Textile  Industry  elected  by  a  fair  method  of  selection, 
to  be  approved  by  the  Administrator,  and  three  members  without 
vote  appointed  by  the  Administrator." 

The  amendments  attached  hereto  contain  administrative  provi- 
sions allowing  the  various  subdivisions  of  the  wool  textile  industry 
to  operate  in  the  most  convenient  and  constructive  manner. 

All  divisions  of  the  wool  textile  industry  are  included  in  this  code 
but  it  is  recognized  that  the  problems  of  some  of  the  branches  of  the 
industry  are  not  comparable  with  the  problems  of  other  branches. 
Consequently,  subcode  authorities  have  been  created  to  care  for  the 
individual  problems  of  each  of  the  well-defined  branches  of  the 
industry. 

III.  FAIR  TRADE  PRACTICES 

The  amendments  propose  several  fair  trade  practices  which  are 
applicable  to  all  of  the  divisions  of  the  industry.  At  a  later  date 
the  subcode  authorities  will  propose  fair  trade  practices  which  shall 
applv  only  to  their  division. 

(681) 


682 

IV.  ARBITRATION 

The  wool  and  worsted  manufacturers  have  been  operating  under 
the  rules  of  the  American  Arbitration  Association  for  several  years 
and  are  now  incorporating  arbitration  provisions  in  their  code,  both 
for  arbitrating  disputes  between  buyers  and  sellers  and  disputes  be- 
tween themselves  concerning  the  rules  and  regulations  that  appear  in 
the  code. 

Findings 

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

I  find  that : 

(a)  The  amendments  to  said  Code  and  the  Code  as  amended  are 
well  designed  to  promote  the  policies  and  purposes  of  Title  I  of  the 
National  Industrial  Recovery  Act  including  the  removal  of  obstruc- 
tions 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  trade  groups,  by  inducing  and  main- 
taining united  action  of  labor  and  management  under  adequate  gov- 
ernmental sanction  and  supervision,  by  eliminating  unfair  competi- 
tive practices,  by  promoting  the  fullest  possible  utilization  of  the  pres- 
ent 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  in- 
creasing purchasing  power,  by  reducing  and  relieving  unemploy- 
ment, by  improving  standards  of  labor,  and  by  otherwise  rehabilitat- 
ing industry. 

(b)  The  Code  as  amended  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)  Section  7,  and  Sub^ 
section  (b)  of  Section  10  thereof. 

(c)  The  National  Association  of  Wool  Manufacturers  was  and 
is  an  industrial  association  truly  representative  of  the  aforesaid 
Industry  and  that  said  association  imposed  and  imposes  no  inequi- 
table restrictions  on  admission  to  membership  therein  and  has  applied 
for  or  consents  to  this  amendment. 

(d)  The  amendments  and  the  Code  as  amended  are  not  designed 
to  and  will  not  permit  monopolies  or  monopolistic  practices. 

(e)  The  amendments  and  the  Code  as  amended  are  not  designed  to 
and  will  not  eliminate  or  oppress  small  enterprises  and  will  not  op- 
erate 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 
amendments. 

For  these  reasons,  these  Amendments  have  been  approved. 
Respectfully, 

Hugh  S.  Johnson, 

Administrator. 
January  23,  1934. 


AMENDMENT   TO    CODE  OF   FAIR    COMPETITION  FOR 
THE  WOOL  TEXTILE  INDUSTRY 

Pursuant  to  Article  X  of  the  Code  of  Fair  Competition  for  the 
Wool  Textile  Industry,  approved  by  the  President  July  26,  1933, 
said  Code  is  hereb}'  amended  in  the  following  manner: 

I. 

The  first  paragraph  of  Article  I  shall  be  modified  by  deleting  the 
word  "  sales "  from  the  words  ''  worsted  sales  yarn  (Bradford 
System)",  "worsted  sales  yarn  (French  System)",  and  "carded 
sales  yarn  " ;  by  adding  after  the  words  "  carded  sales  yarn  "  the 
words  "  not  including  carpet  or  underwear  yarn  " ;  and  by  adding 
after  the  word  "  carbonizing "  the  words  "  topmakers,  the  sale  of 
fabrics  in  the  piece  by  members  of  the  Industry  and/or  their 
agents  " ;  so  that  the  whole  paragraph  shall  read : 

"  I.  Definitions. — As  used  herein  the  term  '  wool  textile  industry  ' 
shall  include  the  following  branches :  Manufacture  of  worsted  men's 
wear,  worsted  women's  wear,  carded  men's  wear,  carded  women's 
wear,  blankets,  cotton  warp  fabrics,  reworked  wool,  knitted  woolen 
goods,  worsted  yarn  (Bradford  System),  worsted  yarn  (French 
System),  carded  yarn  not  including  carpet  or  underwear  yam,  and 
combing,  wool  scouring  and  carbonizing,  top-makers,  the  sale  of 
fabrics  in  the  piece  by  the  members  of  the  Industry  and/or  their 
agents,  and  such  other  related  branches  as  may  from  time  to  time 
be  included  under  the  provisions  of  this  Code." 

II. 

The  first  paragraph  of  Article  III  shall  be  modified  by  substitut- 
ing for  the  word  "  office  "  the  words  "  office  employees  receiving  more 
than  $30.00  per  week  "  and  by  adding  at  the  end  of  said  paragraph 
the  sentence :  "  No  office  employee  receiving  $30.00  a  week  or  less 
shall  work  over  forty-eight  hours  in  any  one  week  or  more  than 
forty  hours  per  week  averaged  over  a  thirteen-week  period  " ;  so 
that  the  whole  paragraph  shall  read : 

"  Hours  of  Labor. — On  and  after  the  effective  date  no  employer 
shall  employ  any  employee  in  excess  of  forty  hours  per  week,  this, 
however,  not  to  apply  to  hours  of  labor  for  repair-shop  crews, 
engineers,  electricians,  firemen,  office  employees  receiving  more  than 
$30.00  per  week,  sales  and  supervisory  staff,  shipping,  watching,  and 
outside  crews.  No  office  employee  receiving  $30.00  a  week  or  less 
shall  work  over  forty-eight  hours  in  any  one  week  or  more  than 
forty  hours  per  week  averaged  over  a  thirteen-week  period." 

(683) 


40121—34- 


684 
III. 

Article  VI  shall  be  amended  by  adding  at  the  end  thereof  the 
following  paragraph : 

"  The  Association  may  assess  any  employer,  at  such  intervals  as 
the  Association  shall  determine,  his  pro-rata  share  (subject  to  ap- 
proval of  the  Administrator)  of  the  expense  of  collecting  and  re- 
ceiving such  reports  and  of  compiling  and  forwarding  to  the  Presi- 
dent the  substance  thereof." 

IV. 

The  following  Articles  shall  be  added  to  and  made  a  part  of  the 
Code: 

"Akticle  XII — Administration 

*'  Section  1.  Designation  of  Divisions  of  the  Industry. — Every  per- 
son engaged  in  the  Wool  Textile  Industry,  who  manufactures  or  sells 
any  product  or  engages  in  any  activity  as  listed  in  Schedule  1  under 
a  designated  Division  of  the  Industry  shall,  as  to  each  product  or 
activity,  operate  under  the  rules  formulated  for  the  Division  into 
which  that  product  or  activity  falls,  and  shall  be  a  member  of  that 
Division.  The  Board  of  Directors  of  the  National  Association  of 
Wool  Manufacturers  may,  from  time  to  time,  amend  Schedule  1  to 
consolidate  Divisions,  create  new  Divisions,  subdivide  old  Divisions, 
or  add  new  products  or  activities  to  old  Divisions  to  the  extent  that 
changes  in  circumstances  require  such  amendment.  Any  such  amend- 
ment shall  be  subject  to  appeal  to  the  Code  Authority  by  an  inter- 
ested person,  and  shall  in  no  event  be  retroactive. 

"  Sec.  2.  Organization  and  Constitidion  of  Code  Authority  and 
Sub-Code  Authorities  : 

"(a)  In  accordance  with  the  Executive  Order  of  July  26,  1933,  a 
Wool  Textile  Industry  Committee  (hereinafter  called  the  '  Code 
Authority ')  is  hereby  constituted  to  cooperate  with  the  Administra- 
tor in  the  administration  of  this  Code.  The  Code  Authority  shall 
consist  of  six  (6)  representatives  of  the  Industry  elected  by  a  fair 
method  of  selection,  to  be  approved  by  the  Administrator,  and  not 
more  than  three  (3)  members  without  vote  to  be  appointed  by  the 
Administrator  and  to  serve  without  expense  to  the  Industry.  Upon 
the  election  of  the  six  members  by  the  Industry,  as  provided  above, 
the  Code  Authority  shall  be  duly  constituted  and  shall  function  as 
herein  set  forth,  whether  or  not  the  Administrator  shall  have 
appointed  the  additional  members. 

"'(b)  The  Code  Authority  shall  adopt  its  own  rules  and/or  meth- 
od,s  of  procedure  and  may  appoint  such  officers  or  agencies  as  it  may 
deem  necessary  properly  to  carry  out  its  duties  in  the  administra- 
tion of  this  Code.  It  may  delegate  to  a  special  Sub-Code  Authority 
of  any  Division  of  the  Industry  listed  in  Schedule  1  its  powers  and 
duties  in  the  administration  of  all  articles  of  this  Code  or  supple- 
mentary codes  relating  to  trade  practices  of  that  Division.  The 
Sub-Code  Authority  for  each  Division  of  the  Industry  shall  consist 
of  not  less  than  three  (3)  members  and/or  representatives  of  that 


685 

Division  elected  by  majorit}^  vote  of  the  members  of  such  Division 
and  to  serve  for  such  periods  a,s  the  Division  may  determine. 

•'(c)  The  members  of  each  Division  or  Sub-Division  may  adopt 
their  own  rules  and/or  methods  of  procedure,  not  inconsistent  with 
the  Act  or  with  the  Code  or  with  the  Bylaws  of  the  National  Asso- 
ciation of  Wool  Manufacturers.  Members  of  each  Division  or  Sub- 
Division  may  propose  rules  of  practice  or  of  merchandising  relating 
to  uniform  terms,  standard  sales  contracts,  sales  below  cost,  the  filing 
of  prices,  competitive  practices,  etc.,  for  their  Division  or  Sub- 
Division,  amplifying  for  that  Division  or  Sub-Division  the  provisions 
of  Article  XIII  hereof  in  order  to  promote  fair  competition ;  sub- 
ject to  the  approval  of  the  Administrator,  such  rules  of  practice  and 
such  merchandising  rules,  Avhen  approved  by  three-fourth  vote  of 
the  members  of  the  Division  or  Sub-Division  affected,  by  the  Sub- 
Code  Authority  of  that  Division,  and  by  the  Code  Authority,  shall 
be  binding  upon  all  members  of  that  Division.  Changes  may  be 
made  in  any  such  rules  in  the  same  manner  in  which  the  original 
rules  were  adopted. 

*'(d)  For  the  purposes  of  this  Section,  the  three  quarter  vote  may 
be  either:  (1)  three  quarters  of  those  voting  at  a  meeting  of  mem- 
bers of  the  Division  or  Sub-Division  duly  called  for  consideration 
of  the  rules;  or  (2)  three  quarters  of  those  voting  on  mailed  ballots 
sent  to  addresses  of  the  members  of  the  Division  or  Sub-Division  at 
least  ten  days  prior  to  the  day  on  which  such  ballots  are  to  be 
.counted.  No  action  by  mail  ballot  shall  be  binding  unless  affirma- 
tive ballots  are  received  from  at  least  one  third  of  tho.se  to  whom 
ballots  are  sent. 

"  Sec.  3.  Appeals: 

"(a)  Any  interested  party  shall  have  the  right  of  complaint  to 
the  Code  Authority  or  the  Sub-Code  Authority,  and  shall  be  given  a 
prompt  hearing  and  decision  thereon,  under  the  rules  of  procedure 
of  such  body,  in  respect  to  the  fairness  of  any  rule  of  practice  of 
merchandising  adopted  for  a  Division  or  Sub-Division  of  which  he  is 
a  member. 

•'(b)  Any  interested  party  shall  have  the  right  of  appeal  to  the 
Administrator,  under  such  rules  and  regulations  as  the  Adminis- 
trator shall  prescribe  in  respect  to  any  decision,  regulation,  or 
order  made  by  the  Code  Authority  or  Sub-Code  Authority  under 
the  foregoing  paragraph.* 

"Article  XIII — Unfair  Trade  Practices 

'•  For  the  purposes  of  this  Code,  the  following  shall  constitute 
unfair  trade  practices  forbidden  to  all  members  of  the  Industry: 

"  1.  Selling  at  terms  different  from  those  prescribed  by  the  rules 
of  the  Division  or  Sub-Division  or  granting  to  any  customer  secret 
rebates,  subsidies,  commissions,  or  aclvertising  credits. 

"  2.  Granting  (excepting  in  connection  with  Government  con- 
tracts) options  or  reservations  or  selling  '  at  value/  or  guaranteeing 
prices  against  either  advances  or  declines. 

•  See  paragraph  2  of  order  approving  this  aiuendmeiit. 


686 

"  3.  Shipping  goods  on  consignment,  except  as  may  be  provided 
for  in  a  Division  or  Sub-Division  merchandising  plan. 

"  4.  Improperlj'^  marking  perfect  goods  as  '  seconds  '  or  otherwise. 

"  5.  Publishing  or  distributing  any  advertising  which  is  mislead- 
ing or  inaccurate  in  any  material  particular,  or  in  any  way  mis- 
representing any  goods,  or  values,  policies,  services,  or  the  nature 
or  form  of  the  business  conducted. 

"•  6.  Manufacturing  or  selling  any  article  in  imitation  of  a  com- 
petitor's package,  trade  mark,  or  trade  name,  or  selling  from  a 
competitor's  samples. 

•'  7.  Failing  to  print  on  copy  of  contract  or  order  the  standard 
sales  contract  provisions  required  by  Division  or  Sub-Division  rules. 

"  8.  Performance  of  commission  work  by  any  employer  as  an 
incidental  function  outside  his  regular  recognized  activities,  without 
complying  with  his  merchandising  plan  in  force  for  the  Division 
or  Sub-Division  covering  such  commission  work. 

"Article  XIV — Arbitration 

"  1.  The  Sub-Code  Authority  of  each  Division  of  the  Industry 
is  directed  to  appoint  a  Panel  consisting  of  as  many  persons  as  it 
deems  proper  (not  limited  to  members  of  the  Division),  to  be  known 
as  the  Panel  on  Trade  Disputes  and  Unfair  Practices  of  the 
Division. 

*'  2.  The  Panel  shall  have  jurisdiction  to  hear,  on  the  complaint  of 
any  interested  person,  any  dispute,  or  controversy  relating  to  a 
violation  of  any  trade  practice  provision  of  this  Code,  which  may 
effect  that  Division,  or  to  a  violation  of  the  rules  of  practice  or  mer- 
chandising for  that  Division. 

"  Immediately  upon  receipt  of  such  complaint  in  writing  a  list  of 
members  of  the  Panel  shall  be  submitted  to  the  party  or  parties 
involved  who  may  cross  off  from  the  list  names  of  persons  to  whom 
objection  is  made.  The  Sub-Code  Authority  will  then  select  a  com- 
mittee from  the  remaining  members  of  the  Panel  consisting  of  not 
less  than  three  (3)  or  more  than  seven  (7)  to  hear  the  complaint  and 
to  make  recommendation  to  the  Sub-Code  Authority  which  shall 
take  such  action  as  it  deems  necessary.  All  persons  subject  to  this 
Code  shall  submit  to  the  Panel  such  facts  and  figures  pertinent  to  any 
controvei'sy  within  the  jurisdiction  of  the  Panel,  as  the  Panel  may 
request.  In  the  event  that  either  party  desires  to  appeal  from  the 
findings  of  the  Panel,  the  matter  shall  then  be  referred  to  the  Ameri- 
can Arbitration  Association. 

"  3.  In  the  event  of  an  unsettled  dispute  between  buyer  and  seller, 
the  seller  must  report  the  dispute  to  the  Sub-Code  Authority.  The 
bu^'er  may  refer  his  case  through  the  appropriate  Sub-Code  Author- 
ity to  the  Panel  on  Trade  Disputes  and  Unfair  Practices  of  the 
Division,  if  he  so  elects,  or  may  take  the  matter  direct  to  the  Ameri- 
can Arbitration  Association. 

"  4.  A  copy  of  the  findings  in  any  arbitration  either  by  the  Panel 
or  bv  the  American  Arbitration  Association  shall  be  promptly  for- 
warcled  to  the  Sub-Code  Authority  and  may  at  the  discretion  of  that 
Authority  be  published  to  the  members  of  the  Division  concerned. 


687 
"  Article  XV — General 

"  1.  The  employment  of  any  subterfuge  to  circumvent  this  Code  or 
any  provision  thereof  shall  be  regarded  as  a  violation  thereof. 

•'  2.  B}'  presenting  this  Code  the  members  of  the  Industry  assent- 
ing thereto  do  not  thereby  consent  to  any  modifications  thereof  and 
they  reserve  the  right  to  object  individually  or  jointly  to  any  such 
modifications. 

"  3.  Where  the  rules  of  practice  or  merchandising  for  any  Division 
require  or  permit  the  filing  of  prices  and/or  samples,  and  price  files 
and/or  sample  files  shall  not  be  available  for  inspection  by  members 
of  the  Division,  but  members  of  the  Division  will  be  entitled  to  ask 
at  reasonable  times  for  information  contained  in  said  files,  v^hich 
information  shall  be  furnished  by  those  in  charge  of  the  files. 

"  Schedule  I 

'•  For  the  purposes  of  this  Code,  the  following  groups  of  persons 
engaged  in  the  Wool  Textile  Industry  shall  constitute  the  respective 
divisions  of  the  Industry,  Such  divisions  may  be  subdivided,  com- 
bined, or  realigned  from  time  to  time  by  the  Board  of  Directors  of 
the  National  Association  of  Wool  Manufacturers, 

"  I.   Worsted  Men's  Wear 
"  II.   Worsted  Women's  wear 
•'  III.   Carded  Men's  wear 
••  IV.   Carded  Women's  wear 

"V.   Blankets 
••  VI.   Cotton  Warps 
••  VII,   Knitted  Woolen  Goods 
''VIII.   Worsted  Spinners  (sales  j^arn)  Bradford  System 
"  IX.  Worsted  Spinners  (sales  yarn)  French  System 

"X.   Carded  Spinners  (sales  yarn) 
"  XL   Combers 
"  XII.   Wool  scourers  and  carbonizers 
"  XJII.   Piece  Goods  Selling 
'•  XrV,   Reworked  wool 

"XV,  Topmakers 
"  For  the  purpose  of  the  '  Rules  of  Practice  and  Merchandising  for 
the  Piece  Goods  Selling  Division  \  this  Division  shall  be  composed 
of  the  active  members  making  Worsted  Men's  Wear,  Worsted 
Women's  Wear,  Carded  Men's  Wear,  Carded  Women's  Wear,  Cot- 
ton Warps,  and  Knitted  Woolen  Goods, 

"  Each  member  of  said  Division  shall  vote  either  individually  or 
through  a  duly  appointed  representative," 

Approved  CJode  No.  3 — ^Amendment  No.  1. 
Registry  No.  286-04, 


Approved  Code  No.  75 — Amendment  No.  1 

AMENDMENT   TO   CODE   OF   FAIR   COMPETITION 

FOR  THE 

CANNING  AND  PACKING  MACHINERY  INDUSTRY 

As  Approved  on  January  27,  1934 


ORDER 


Approving   Amendment   to  Code   of   Fair    Competition   for   the 
Canning  and  Packing  Machinery  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  amend- 
ments to  a  Code  of  Fair  Competition  for  the  Canning  and  Packing 
Machinery  Industry,  and  hearings  having  been  duly  held  thereon 
and  the  annexed  report  on  said  amendments,  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  amendments  and  the  Code  as 
constituted  after  being  amended  comply  in  all  respects  with  the  per- 
tinent provisions  and  will  promote  the  policy  and  purposes  of  said 
Title  of  said  Act.  and  do  hereby  order  that  said  amendments  be  and 
they  are  hereby  approved,  and  that  the  previous  approval  of  said 
Code  is  hereby  modified  to  include  an  approval  of  said  Code  in  its 
entirety  as  amended,  except  that  the  amendment  to  Article  XI  Sec- 
tion (h)  shall  take  effect  15  days  from  the  date  hereof,  unless  good 
cause  to  the  contra ly  is  shown  to  the  Administrator  before  that 
time  and  the  Administrator  issues  a  subsequent  order  to  that  effect. 

Hugh  S.  Johnson, 
Administrator  for  Ind-ustrial  Recovery. 

Approval  recommended : 
Malcolm  Muik, 

Division  Administrator. 

Washington,  D.C. 

January  27,  19-34. 

(689) 


REPORT  TO  THE  PRESIDENT 
The  President, 


The  'White  House 


Sir:  This  is  the  report  of  the  Amendments  to  the  Code  of  Fair 
Competition  of  the  Canning  and  Packing  Machinery  Industry  to 
permit  the  inclusion  of  another  industrial  gi*oup,  the  hearing  having 
been  held  in  Washington  on  the  Tth  day  of  December,  1933,  in 
accordance  with  the  provisions  of  the  National  Industrial  Recovery 
Act. 

PROVISIONS  AS  TO  HOURS  AND  WAGES 

The  provisions  of  the  Code  have  not  been  altered  as  to  hours  and 
wages  from  the  provisions  as  adopted  in  the  Code  as  signed  on 
October  31,  1933.  The  Meat  Packing  and  Allied  Products  Ma- 
chinery and  Equipment  group  will  work  under  the  labor  provisions 
of  this  Code  as  a  part  of  this  Industry. 

ECONOMIC   EFFECT  OF  THE   AMENDMENTS 

Under  normal  conditions  in  this  industrial  group  the  work  week 
averaged  44  hours.  Operation  on  the  shortened  schedule  of  hours, 
as  provided  in  the  Code,  will  result  in  an  increase  of  16  percent  in 
the  number  of  employees,  or  a  total  for  the  group  of  696.  This 
brings  the  total  number  of  employees  in  the  Canning  and  Packing 
Machinery  Industry  up  to  approximately  2,200. 

This  industrial  group  manufactures  machinery  which  is  used  in 
the  processing  and  preserving  of  animal  products  for  food.  Invested 
capital  is  $2,500,000  and  the  five-year  annual  average  value  of  its 
products  is  $3,500,000.  The  value  of  products  of  the  Canning  and 
Packing  Machinery  Industrv  on  the  above  average  basis  now  totals 
$7,000,000. 

FINDINGS 

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

I  find  that : 

(a)  The  amendments  to  said  Code  and  the  Code  as  amended  are 
well  designed  to  promote  the  policies  and  purposes  of  Title  I  of 
the  National  Industrial  Recovery  Act  including  the  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  coo]3erative  action  among  trade  groups,  by  inducing 
and  maintaining  united  action  of  labor  and  management  under  ade- 
quate 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 

(690) 


691 

restriction  of  production  (except  as  may  be  temporarily  required), 
by  increasing  the  consumption  of  industrial  and  agricultural  prod- 
ucts through  increasing  purchasing  power,  b}^  reducing  and  relieving 
unemployment,  by  improving  standards  of  labor,  and  by  otherwise 
rehabilitating  industry, 

(b)  The  Code  as  amended  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. 

(c)  The  Meat  Packing  and  Allied  Products  Machinery  and 
Equipment  group  was  and  is  an  industrial  group  truly  representa- 
tive of  the  aforesaid  Industry  and  that  said  group  imposed  and 
imposes  no  inequitable  restrictions  on  admission  to  membershiiD 
therein  and  has  applied  for  or  consents  to  these  amendments. 

(d)  The  amendments  and  the  Code  as  amended  are  not  designed 
to  and  wil]  not  permit  monopolies  or  monopolistic  practices. 

(e)  The  amendments  and  the  Code  as  amended  are  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 
amendments. 

For  these  reasons,  therefore,  the  amendments  to  this  Code  have 
been  approved  by  me. 
Respectfully, 

Hugh  S.  Johnson, 

A  dminis  trator. 
January  27,  1934. 


AMENDMENT  TO  CODE  OF  FAIR  COMPETITION  FOR  THE 
CANNING  AND  PACKING  MACHINERY  INDUSTRY 

The  Title  of  this  Industry  is  amended  to  read  as  f  oIIoavs  : 
Code  of  Fair  Competition  for  the  Canning  and  Packing  Machinery 
and  Equipment  Industry. 

Article  I  is  thus,  with  the  amended  title,  amended  to  read  as 
follows : 

To  effectuate  the  policies  of  Title  I  of  the  National  Industrial 
Recovery  Act,  the  following  provisions  are  established  as  a  Code  of 
Fair  Competition  for  the  Canning  and  Packing  Machinery  and 
Equipment  Industry  and  shall  be  binding  upon  every  member 
thereof. 

Paragraph  1  of  Article  II  is  amended  to  read  as  follows : 
"■  Industry "  as  used  herein  means  the  Canning  and  Packing 
Machinery  and  Equipment  Industry,  which  embraces  the  manufac- 
ture for  sale  or  sale  in  the  open  market  and  within  the  United  States 
of  America  or  its  territories  of  canning  machinery  and  equipment 
used  for  the  preparation  and  processing  of  foods  for  human  or 
animal  consumption;  machinery  and  equipment  used  for  the  manu- 
facture of  cans  and  containers  for  such  food;  machinery  and  equip- 
ment used  for  the  preparation  and  packing  of  fresh  fruits  and 
vegetables ;  machinery  and  equipment  used  for  the  dressing,  process- 
ing, and  packing  of  animal,  poultry,  and  fish  products  whether 
intended  for  final  sale  in  fresh,  frozen,  cured,  or  canned  form; 
machinery  and  equipment  used  for  the  processing  and  packing  of, 
dried  and  dehydrated  fruits  and  vegetables;  machinery  and  equip- 
ment used  for  the  rendering  of  either  animal,  poultry,  fish,  vege- 
tables, and/or  fruits  or  the  by-products  obtainable  from  the  forego- 
ing and  without  limitation  as  to  final  disposal  in  either  edible  or 
nonedible  form;  and  parts  thereof;  but  excepting  any  machinery 
or  equipment  or  parts  therefor  having  a  general  application  and  use 
for  purposes  other  than  the  uses  hereinabove  enumerated. 
Paragraph  (e)  of  Article  III  is  amended  to  read  as  follows: 
No  employer  shall  operate  on  a  schedule  of  more  than  6  days  work 
in  seven  except  in  cases  of  emergenc3^ 

Paragraph  (h)  of  Article  XI  is  amended  to  read  as  follows: 
Making  or  offering  to  make  a  trade-in  allowance  for  any  machine 
more  than  two  years  old  greater  than  15%  of  the  price  of  the  new 
machine  or  of  the  original  price  of  the  trade-in  machine,  whichever  is 
lower;  provided  that  the  Code  Authorit}'  may,  at  its  discretion,  in- 
crease this  percentage  for  various  classes  of  machinery  and/or  equip- 
ment ; 

Approved  Code  No.  75 — -Amendment  No.  1. 
Registry  No.  1399-35. 

(692) 


ApproTed  Code  No.  94 — Amendment  No.  1 
AMENDMENT  TO  CODE  OF  FAIR  COMPETITION 

FOR  THE 

MEN'S  GARTER,  SUSPENDER,  AND  BELT 
MANUFACTURING  INDUSTRY 

As  Approved  on  January  27,  1934 


OEDER 


Appijoving  Amendment  to  Code  of  Fair  CoMPETrnoN  for  the  Men's 
Garter,  Suspender,  and  Belt  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  an  amend- 
ment to  a  Code  of  Fair  Competition  for  the  Men's  Garter,  Sus- 
pender, and  Belt  Manufacturing  Industry,  and  hearings  having  been 
duly  held  thereon  and  the  annexed  report  on  said  amendment,  con- 
taining 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  b}'^  Executive  Orders  of  the 
President,  including  Executive  Order  No.  6o43-A,  dated  December 
30.  1933,  and  otherwise;  do  hereby  incorporate,  by  reference,  said 
annexed  report  and  do  find  that  said  amendment  and  the  Code  as 
constituted  after  being  amended  comply  in  all  respects  with  the 
l)ertinent  provisions  and  will  promote  the  policy  and  purposes  of 
said  Title  of  said  Act,  and  do  herebj^  order  that  said  amendment  b© 
and  it  is  hereby  approved,  and  that  the  previous  approval  of  said 
Code  is  hereby  modified  to  include  an  approval  of  said  Code  in 
its  entirety  as  amended. 

Hugh  S.  Johnson, 
Administrator  for  Industrial  Recovery. 

Approval  recommended : 
A.  D.  Whiteside, 

Division  Administrator. 
Washington,  D.C, 

January  27,  193^. 

(693) 


REPORT  TO  THE  PRESIDENT 

The  President, 

The  'White  House. 

Sir:  The  Public  Hearing  on  an  amendment  to  the  Code  of  Fair 
Competition  for  the  Men's  Garter,  Suspender,  and  Belt  Manufactur- 
ing Industry  as  proposed  by  the  Code  Authority  for  this  Industry 
was  conducted  on  December  22.  1933  in  Room  D  of  the  Washington 
Hotel,  Washington,  D.C.  Every  person  who  requested  an  appear- 
ance was  fairly  heard  in  public  in  accordance  with  the  usual  require- 
ments. Present  were  authorized  representatives  of  the  Code  Author- 
ity for  this  Industry  and  representative  members  of  the  Industry. 

The  Code  of  Fair  Competition  for  the  Men's  Garter,  Suspender, 
and  Belt  Manufacturing  Industry,  approved  November  4,  1933,  did 
not  contain  any  Trade  Practice  Provisions.  Article  V,  Section  \  of 
this  Code  provides  that  the  Code  Authority  shall  study  provisions 
relating  to  trade  practices  and  make  recommendations  thereon  to 
the  Administrator.  Proposed  Trade  Practice  Provisions  were  ac- 
cordingly submitted  by  the  Code  Authority  for  approval,  and  formed 
the  entire  subject  matter  of  this  amendment. 

In  final  form  this  amendment  has  been  approved  by  the  Labor 
Advisory  Board,  Industrial  Advisory  Board,  Research  and  Planning 
Division,  and  Legal  Division  of  the  National  Recovery  Administra- 
tion. The  Code  Authority  has  indicated  its  approval  of  the  Trade 
Practice  Provisions  on  behalf  of  the  Industry. 

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

I  find  that : 

(a)  The  amendment  to  said  Code  and  the  Code  as  amended  are 
Well  designed  to  promote  the  policies  and  purposes  of  Title  I  of  the 
National  Industrial  Recover}^  Act  including  the  removal  of  obstruc- 
tions 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  trade  groups,  by  inducing  and  main- 
taining united  action  of  labor  and  management  under  adequate 
governmental  sanction  and  supervision,  by  eliminating  unfair  com- 
petitive practices,  by  promoting  the  fullest  possible  utilization  of 
the  present  productive  capacity  of  industries,  by  avoiding  undue 
testriction  of  production  (except  as  may  be  temporarily  required), 
by  increasing  the  consumption  of  industrial  and  agricultural  prod- 
ucts through  increasing  purchasing  power,  by  reducing  and  relieving 
unemployment,  by  improving  standards  of  labor,  and  by  otherwise 
rehabilitating  industry. 

(b)  The  Code  as  amended  complies  in  all  resi)ects  with  the  perti- 
lient  provisions  of  said  Title  of  said  Act,  including  without  limita- 

(694) 


695 

tion  Subsection  (a)  of  Section  3,  Subsection  (a)  of  Section  7,  and 
Subsection  (b)  of  Section  10  thereof. 

(c)  The  Code  empowers  the  Code  Authority  to  present  the  afore- 
said amendment  on  behalf  of  the  industry  as  a  whole. 

(d)  The  amendment  and  the  Code  as  amended  are  not  designed 
to  and  will  not  permit  monopolies  or  monopolistic  practices. 

(e)  The  amendment  and  the  Code  as  amended  are  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 
amendment. 

For  these  reasons,  these  trade  practice  provisions  have  been 
approved. 

EespectfuUy, 

Hugh   S.   Johnson, 

A  drrmdstrator. 
January  27,  1934. 


AMENDMENT  TO  CODE  OF  FAIR  COMPETITION  FOR 
THE  MEN'S  GARTER,  SUSPENDER,  AND  BELT  MANU- 
FACTURING INDUSTRY 

Article  IX — Trade  Practices 

The  following  practices  are  established  as  methods  of  fair  compe- 
tition for  members  of  this  industry  and  any  violations  of  these  shall 
be  constituting  an  unfair  method  of  competition. 

1.  Customers  shall  be  classified  as  follows : 

(a)  General  wholesale  dry  goods,  jobbers,  including  exporters. 

(b)  Specialty  wholesale  houses  handling  principally  neckwear, 
belts,  garters,  suspenders,  collar  pins,  and  belt  buckles. 

(c)  Retail  accounts  purchasing  direct  from  the  manufacturer. 

(d)  Mail-order  houses. 

(e)  Chain  stores. 

(f )  Manufacturers'  sales  agents. 

The  Code  Authorit}^  may  from  time  to  time  modify,  amplify, 
and/or  define  the  foregoing  customer  classifications  subject  to  the 
right  of  review  by  the  Administrator. 

2.  Any  member  of  the  Industry  who  markets  any  or  all  of  his 
products  through  sales  agencies  or  commission  men  and  who  retains 
title  to  such  products,  shall  make  it  a  condition  that  such  sales 
agencies  or  commission  men  agree  to  be  bound  by  and  comply  with 
all  trade  practice  provisions  of  this  Code  to  the  same  extent  as  applies 
to  and  is  required  of  a  member  of  the  Industry. 

3.  Terms  of  sale  on  all  merchandise  sold  to  various  classes  of 
customers,  as  hereinbefore  defined,  shall  not  be  greater  than  the 
following : 

All  customers  in  Class  (a^,  2%  ten  days  E.O.M.,  net  sixty  days. 

All  customers  in  Class  (b),  2%  ten  days  E.O.M.,  net  sixty  days. 

All  customers  in  Class  (c),  2%  ten  days  E.O.M. 

All  customers  in  Class  (d),  2%  ten  days  E.O.M. 

All  customers  in  Class  (e),  2%  ten  days  E.O.M. 

Invoices  rendered  for  goods  shipped  on  and  after  the  twenty-fifth 
day  of  each  month  may  bear  the  date  of  the  first  day  in  the  following 
month,  but  no  other  dating  shall  be  allowed,  except  as  hereinafter 
provided. 

4.  Garter  belts  sold  to  Corset  Departments  may  be  sold  on  cash 
and/or  trade  discounts  not  greater  than  eight  percent  (8%)  ten 
days  E.O.M. 

5.  (A)  No  member  of  the  industry  shall  give  to  any  customer  any 
trade  discount,  quantity  discount,  or  any  other  discount,  rebate,  or 
allowance,  except  as  provided  in  Sections  3  and  4  hereof.  The  pro- 
visions of  this  section  shall  not  be  construed  to  prohibit  price  differ- 
entials by  any  member  of  the  industry  between  customers. 

(B)  No  member  of  the  industry  shall  give  to  any  customer  any 
rebate  or  allowance  of  any  kind  on  any  merchandise  because  of  a 
decline  in  price  after  shipment  has  been  made. 

(696) 


697 

6.  (A)  "•  Holiday  Goods  "  may  be  shipped  to  customers  in  Class 
(C),  as  hereinbefore  defined,  at  the  manufacturer's  convenience  and 
not  more  than  thirty  (30)  days'  dating  given,  provided  that  such 
extra  dating  shall  not  make  the  discount  date  fall  later  than  Janu- 
ary 10  of  the  following  year;  anticipation  may  be  allowed  at  a  rate 
not  to  exceed  one  half  of  one  percent  monthly,  but  such  datings  and 
anticipation  shall  be  confined  exclusively  to  "  Holiday  Goods." 

(B)  "Holiday  Goods"  may  be  shipped  to  customers  in  Classes 
(a),  (b),  (d),  and  (e),  as  hereinbefore  defined,  at  the  manufacturer's 
convenience  and  not  more  than  sixty  (60)  days'  dating  given,  pro- 
vided that  such  extra  dating  shall  not  make  the  discount  date  fall 
later  than  January  10  of  the  following  year;  anticipation  may  be 
allowed  at  a  rate  not  to  exceed  one  half  of  one  percent  monthly,  but 
such  datings  and  anticipation  shall  be  confined  exclusively  to  "  Holi- 
day Goods," 

The  t€rm  "Holiday  Goods",  as  used  herein  above,  is  defined  to 
include  any  merchandise  specially  packed  for  the  Christmas  trade 
and  intended  to  be  sold  for  Christmas  gifts,  and  having  special  con- 
tainers or  other  designation  appropriate  to  Christmas.  All  other 
merchandise  is  definitely  excluded  from  the  special  terms  provided 
in  Section  6. 

7.  No  member  of  the  Industry  shall  give,  permit  to  be  given,  or 
directly  offer  to  give  anything  of  value  for  the  purpose  of  influenc- 
ing or  rewarding  the  action  of  any  employee,  agent,  or  representative 
of  another  in  relation  to  the  business  of  the  employer  of  such  em- 
ployee, the  principal  of  such  agent,  or  the  represented  part}'-  with- 
out the  knowledge  of  such  employer,  principal,  or  party.  Commer- 
cial bribery  provisions  shall  not  be  construed  to  prohibit  a  general 
distribution  of  articles  commonly  used  for  advertising  except  so  far 
as  such  articles  are  actually  used  for  commercial  bribery  as  herein- 
above defined. 

8.  No  member  of  the  Industry  shall  accept  the  return  of  any  arti- 
cle for  credit  or  exchange  which  is  subject  to  the  provisions  of  the 
Code,  except  on  account  of  defects  in  manufacture;  provided,  how- 
ever, that  articles  returned  on  account  of  errors  in  shipment,  delay 
in  delivery,  or  failure  to  conform  to  specifications  may  be  accepted 
if  returned  within  ten  (10)  days  from  date  of  receipt  by  the 
customer. 

9.  No  merchandise  shall  be  shipped  on  consignment,  memoranda, 
or  guaranteed  sale. 

10.  No  member  of  the  Industry  shall  sell  any  article,  subject  to  the 
provisions  of  this  Code,  at  a  price  below  his  individual  cost.  How- 
ever, any  member  may  meet  the  price  competition  of  any  competitor 
whose  cost  under  this  Code  is  lower.  Cost  for  the  purposes  of  this 
provision  shall  be  determined  in  accordance  with  the  uniform  cost 
and  accounting  system  provided  for  in  Article  V,  Section  2,  subsec- 
tion (i)  hereof  when  such  system  is  recommended  by  the  Code  Au- 
thoritv  and  approved  by  the  Administrator. 

11.  The  sale  and/or  delivery  of  distressed  merchandise,  discontin- 
ued styles,  salesmen's  samples,  seconds,  and  faulty  or  defective  mer- 
chandise falling  below  the  manufacturer's  standard  for  regular  goods, 
and  all  similar  merchandise,  shall  bo  confined  to  two  periods  during 
the  year,  viz,  one  ])eriod  from  December  16  to  Jniuiary  31  and  another 
period  from  July  5  to  August  5  of  each  year,  provided,  however,  that 


698 

upon  application  to  the  Code  Authority  a  Member  of  the  Industry 
may  upon  proper  showing  obtain  permission  to  dispose  of  merchan- 
dise covered  by  this  provision  at  other  periods  than  those  herein  pro- 
vided, and  upon  such  reasonable  terms  and  conditions  as  the  Code 
Authority  may  impose.  Merchandise  sold  in  accordance  with  this 
provision  shall  be  exempt  from  the  provisions  of  Section  10.  Any 
action  taken  by  the  Code  Authority  under  this  provision  shall  be 
subject  to  revieAv  by  the  Administrator. 

12.  No  member  of  the  Industry  shall  make,  directly  or  indirectly, 
any  advertising  allowance  to  any  customer. 

13.  No  extra  discount  shall  be  allowed  on  merchandise  supplied 
to  wholesale  merchants  for  use  as  samples.  Equipment  rolls  and 
folders  may  be  supplied  to  wholesale  merchants  by  manufacturers 
at  a  price  of  not  less  than  the  cost  to  the  manufacturer. 

14.  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. 

15.  No  member  of  the  Industrj^  shall  by  purchase  or  exchange,  or 
in  any  other  manner  acquire  another  manufacturer's  merchandise 
from  any  customer,  for  the  purpose  of  affecting  or  in  any  manner 
influencins  the  sale  of  merchandise  to  such  customer. 


't? 


Approval  Code  No.  94 — -Amendment  No.  1. 
Registry  No.  271-1-01. 


Approved  Code  No.  204.     Amendment  No.  1 

AMENDMENT  TO  CODE  OF  FAIR  COMPETITION 

FOR   THE 

PLUMBING  FIXTURES  INDUSTRY 

As  Approved  on  January  31,  1934 


ORDER 


Terminating  Stay  Contained  in  Order  of  the  Administrator  fok- 
Industrial  Recovery,  Dated  January  13,  1934,  Approving  Code; 
OF  Fair  Competition  for  the  Plumbing  Fixtures  Industry  and- 
Finally  Approving  Said  Code  as  Modified 

An  Order  was  signed  on  January  13.  1934,  by  the  Administrator 
for  Industrial  Recoveiy,  on  behalf  of  the  President  of  the  United 
States,  approving  a  Code  of  Fair  Competition  for  the  Plumbing 
Fixtures  Industry  but  staying  for  a  period  of  sixty  (60)  days  the 
application  of  certain  of  the  provisions  of  Section  7  of  Article  VIII 
of  said  Code. 

An  application  having  been  duly  made  by  the  Committee  on 
Organization  of  the  Code  of  Fair  Competition  for  the  Plumbing 
Fixtures  Industry,  the  applicant  for  the  approval  of  said  Code,  for 
the  termination  of  such  stay,  and  such  applicant  having  requested 
and  agreed  to  the  termination  of  such  stay  subject  to  the  proviso 
hereinafter  set  forth  in  this  Order: 

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  order  that  said  stay  be  and  it  is 
hereby  terminated,  provided,  however,  that  the  provisions  of  the 
second  paragraph  of  Section  7  of  Article  VHI  of  said  Code  (con- 
tained in  the  sole  complete  paragraph  appearing  on  Page  22  of  said 
Code  as  originally  submitted  for  approval  be  modified  to  read  as. 
follows : 

"  In  recognition  of  the  fact  that  the  products  of  these  indus- 
tries cannot  be  installed  in  ultimate  service  without  the  per- 
formance of  wholesaling  functions  such  as  assembling,  ware- 
housing, and  buying  in  bulk  of  these  products  and  of  accessory 
and  complementary  products  by  individuals,  firms,  or  corpora- 
tions either  exclusively  or  in  conjunction  with  the  performance- 
of  the  fimction  of  retailing  said  individuals,  firms,  corporations,, 
or  other  persons,  in  consideration  of  the  performance  of  such 
wholesaling  function  and  of  purchasing  in  wholesale  quantities, 

40121—34 4  (699) 


700 

-shall  receive  a  trade  discount  from  published  prices  greater  than 
the  trade  discount  accorded  to  any  individuals,  firms,  corpora- 
tions, or  other  persons  who  do  not  perform  the  wholesaling 
function  hereinabove  described.  The  difference  between  the 
trade  discount  allowed  to  those  individuals,  firms,  corporations, 
or  other  persons  performing  such  wholesaling  function  and  the 
trade  discount  accorded  to  other  purchasers  for  resale,  shall  be 
determined  by  each  individual  manufacturer  in  establishing  his 
wholesale  purchase  price  level  and  his  retail  purchase  price 
level ;  but  in  no  case  shall  such  difference  be  less  than  the  per- 
centage determined  by  the  Code  Authority,  with  the  approval 
of  the  Administrator,  subject  to  modifications  made  therein 
from  time  to  time  with  the  approval  of  the  Administrator,  such 
percentage  and  such  modifications  therein  to  be  confirmed  by 
immediate  studies  of  the  value  to  the  consumer  of  the  functions 
involved.  Such  studies  shall  be  made  by  an  impartial  fact- 
finding agency  under  the  direction  of  the  Code  Authority." 

.and  do  order  that  said  Code  of  Fair  Competition  for  the  Plumbing 
Fixtures  Industry,  as  so  modified  with  the  assent  of  the  said  Com- 
mittee on  Organization  of  the  Code  of  Fair  Competition  for  the 
Plumbing  Fixtures  Industry,  be  and  it  is  hereby  approved  and  that 
the  previous  approval  of  said  Code  is  hereby  modified  to  include 
an  approval  of  said  Code  in  its  entirety  as  modified  as  hereinabove 
provided,  such  approval  and  such  modification  to  take  effect  ten  (10) 
days  from  the  date  hereof,  unless  good  cause  to  the  contrary  is 
shown  to  the  Administrator  before  that  time  and  the  Administrator 
issues  a  subsequent  order  to  that  effect. 

Hugh  S.  Johnson, 
Adrtimistrator  for  Industinal  Recovery. 

Approval  recommended: 
I  W.  A.  Harriman, 

Division  Admmistraior. 

Washington,  D.C, 

Januofry  31,  IQSJf.. 


-u— i:;^..! 


KEPORT  TO  THE  PRESIDENT 

The  President, 

The  IVMte  House. 

Sir  :  This  is  a  report  on  an  amendment  to  the  second  paragraph  of 
Section  7,  Article  VIII,  in  the  Code  of  Fair  Competition  for  the 
Plumbing  Fixtures  Industry  as  approved  on  January  13,  1934. 

In  the  order,  approving  the  above  Code,  executed  on  January  13, 
1934,  by  the  Administrator  for  Industrial  Recovery,  the  application 
of  the  provisions  of  Section  7  of  Article  YIII  was  stayed  for  a 
period  of  sixty  (60)  clays  in  order  to  afford  consideration  of  the 
objections  of  an}-  interested  parties  to  such  provisions.  Inasmuch  as 
said  provisions  have  been  revised  to  clarify  their  meaning  and  intent, 
probability  of  objection  has  been  greatly  minimized. 

The  amended  provisions  do  not  in  any  way  affect  the  Wage  and 
Hour  provisions  of  the  Code  or  the  number  of  workers  employed. 
Their  specified  purpose  is  further  to  stabilize  an  Industry  where 
unfair  competition  may  be  exceedingly  detrimental  to  the  continued 
successful  operation  of  the  members  of  the  Industrj\ 

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

I  find  that : 

(a)  The  amendment  to  said  Code  and  the  Code  as  amended  are 
well  designed  to  promote  the  policies  and  purposes  of  Title  I  of 
the  National  Industrial  Recovery  Act  including  the  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  trade  groups,  by  inducing 
and  maintaining  united  action  of  labor  and  management  under 
adequate  governmental  sanction  and  supervision,  by  eliminating 
unfair  competitive  practices,  by  promoting  the  fullest  possible  uti- 
lization of  the  present  productive  capacity  of  industries,  by  avoiding 
undue  restriction  of  production  (except  as  may  be  temporarily  re- 
quired), 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)  The  Code  as  amended  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. 

(c)  The  applicant  associations  were  and  are  industrial  associa- 
tions truly  representative  of  the  aforesaid  Industry  and  that  said 
associations  imposed  and  impose  no  inequitable  restrictions  on  ad- 
mission to  membership  therein  and  have  applied  for  or  consents  to 
this  amendment. 

(701) 


702 

(d)  The  amendment  and  the  Code  as  amended  are  not  designed 
to  and  will  not  permit  monopolies  or  monopolistic  practices, 

(e)  The  amendment  and  the  Code  as  amended  are  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 
amendment. 

(g)  For  these  reasons,  therefore,  I  have  approved  the  amendment 
to  this  Code. 

Kespectfully, 

Hugh  S.  Johnson, 

Administrator, 
January  31,  1934. 

Approved  Code  No.  204,  Amendment  No.  !► 
Registry  No.  1129-03. 


SUPPLEMENTS 


Approved  Code  No.  84.     Supplement  No.  1 

SUPPLEMENTARY  CODE  OF  FAIR  COMPETITION 

FOR  THE 

METALLIC  WALL  STRUCTURE  INDUSTRY 

As  Approved  on  January  10,  1934 


ORDER 


Approving  Supplementary  Code  of  Fair  Competition  for  the 
Metallic  Wall  Structure  Industry 

A  division  of  the  fabricated  metal  products  manufacturing  and- 
metal  finishing  and  metal  coating  industry 

An  application  having  been  duly  made  pursuant  to  and  in  full 
compliance  Avith  the  provisions  of  Title  I  of  the  National  Industrial 
Recovery  Act,  approved  June  16,  1933,  and  in  accordance  with  the 
provisions  of  Section  I  of  Article  VI  of  the  Basic  Code  for  the  Fab- 
ricated Metal  Products  Manufacturing  and  Metal  Finishing  and 
Metal  Coating  Industry,  approved  November  2,  1933,  for  approval 
of  a  Supplementary  Code  of  Fair  Competition  for  the  Metallic  Wall 
Structure  Industry;  and  hearings  having  been  duly  held  thereon; 
and  the  annexed  report  on  said  Supplementary  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  Industrial  Recovery. 

Approval  Recommended : 
Malcolm  Muir, 

Division  Administrator.  .         ; 

Washington,  D.C, 

Januai^  10^  193Jf. 

(703) 


KEPORT  TO  THE  PRESIDENT 

"The  Presidext, 

The  White  House. 
Sir  :  This  is  a  "report  on  the  Supplementary  Code  of  Fair  Compe- 
tition for  the  Metallic  Wall  Structure  Industry,  a  division  of  the 
Fabricated  Metal  Products  Manufacturing  and  Metal  Finishing  and 
Metal  Coating  Industry,  and  on  the  hearing  conducted  thereon  in 
Washington,  D.C.,  December  22,  1933,  in  accordance  with  the  pro- 
visions of  Title  I  of  the  National  Industrial  Recovery  Act. 

GENERAL  STATEMENT 

The  Metallic  Wall  Structure  Industry,  being  truly  representative 
of  this  division  of  the  Fabricated  Metal  Products  Manufacturing 
and  Metal  Finishing  and  Metal  Coating  Industry,  has  elected  to 
avail  itself  of  the  option  of  submitting  a  Supplementary  Code  of 
Fair  Practice,  as  provided  for  in  Section  1  of  Article  VI  of  the 
Basic  Code,  for  the  Fabricated  Metal  Products  Manufacturing  and 
Metal  Finishing  and  Metal  Coating  Industry  approved  by  you  on 
the  second  day  of  November  1933. 

RESUME  OF  THE  CODE 

Article  I  states  the  purpose  of  the  Supplementary  Code. 

Article  II  accurately  defines  specific  terms  employed  in  the  Supple- 
mentary Code. 

Article  III :  This  Industry  is  a  division  of  the  Fabricated  Metal 
Products  Manufacturing  and  Metal  Finishing  and  Metal  Coating 
Industry  and  the  labor  provisions  of  its  Basic  Code,  as  approved 
November  2,  1933,  are  the  labor  provisions  of  this  Supplementary 
<I!ode. 

Article  IV  establishes  a  Supplementary  Code  Authority  consist- 
ing of  seven  members  of  which  five  shall  be  elected  by  the  members 
■of  the  National  Steel  Partition  Association  or  its  successor,  and  two 
shall  be  elected  by  members  of  the  Industrj^  who  are  not  members 
of  the  Association,  if  any,  and  gives  the  Administrator  the  authority 
to  appoint  one  additional  member  without  vote  and  provides  ma- 
'chinery  for  obtaining  statistics  and  the  administration  of  this  Code. 

Article  V  sets  forth  the  fair  trade  practices  of  this  Supplementary 
*Code  which  has  been  especially  designed  to  effect  fair  competition 
in  this  division  of  the  Industry. 

Article  VI  contains  the  mandatory  provisions  contained  in  Sec- 
tion 10  (b)  of  the  Act  and  also  provides  for  the  submission  of  pro- 
posed amendments  to  the  Code. 

Article  VII  provides  against  monopolies  and  monopolistic  prac- 
tices. 

Article  VIII  recognizes  that  price  increases  be  limited  to  actual 
additional  increases  in  the  seller's  costs. 

Article  IX  states  the  effective  date  of  this  Supplementary  Code. 

(704) 


705 


FINDINGS 


The  Assistant  Deputy  Adminstrator  in  his  final  report  to  me  on 
said  Code  having'  found  as  herein  set  forth  and  on  the  basis  of  all 
the  proceedinss  in  this  matter ; 

I  find  that— 

(a)  Said  Supplementary  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  organ- 
ization 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- 
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  purchas- 
ing 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  Supplementary  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  Industr}^;  and  that  said  association  imposes  no 
inequitable  restriction  on  admission  to  membership  therein. 

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

(e)  The  Supplementary  Code  is  not  designed  to  and  will  not  elimi- 
nate 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  Supplementary 
Code. 

Respectfully, 

Hugh  S.  Johnson, 

A  d7mnistrator, 
January  10,  1934. 


SUPPLEMENTARY  CODE  OF  FAIR  COMPETITION  FOR 
THE  METALLIC  WALL  STRUCTURE  INDUSTRY 

A  DIVISION    OF   THE   FABRICATED    METAL    PRODUCTS    MANUFACTURING    AND 
METAL    FINISHING    AND    METAL    COATING    INDUSTRY 

Article  I — Purposes 

To  effectuate  the  policies  of  Title  I  of  the  National  Industrial 
Recovery  Act  the  following  provisions  are  submitted  as  a  Supple- 
mentary Code  of  Fair  Competition  for  the  Metallic  Wall  Struciurs 
Industry,  pursuant  to  Article  VI  of  the  Basic  Code  of  Fair  Compe- 
tition for  the  Fabricated  Metal  Products  Manufacturing  and  Metal 
Finishing  and  Metal  Coating  Industry,  approved  by  the  President 
of  the  United  States  on  the  second  day  of  November  1933,  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 

Section  1.  The  term  "  Metallic  Wall  Structure  Industry  "  as  used 
herein  includes  the  manufacture  and/or  sale  of  installations  of  Me- 
tallic Wall  Structures  as  defined  hereinafter  and/or  the  manufacture 
and/or  sale  by  manufacturers  of  parts  for  use  in  such  installations. 

Sec.  2.  The  term  "  Metallic  Wall  Structure  "  as  used  herein  means 
any  structure  such  as  is  commonly  employed  to  subdivide  the  inte- 
riors of  buildings,  such  as  partitions,  railings,  etc.,  which  are  made 
up  of  separately  electable  units  and  include  steel  panels  and/or  sup- 
porting or  framing  members  of  the  type  known  as  pressed  or  form 
rolled  or  tubular  or  hollow  metal,  extending  either  vertically  or  hori- 
zontally, and  panel  fillers  or  stretchers  of  steel,  glass,  wallboard,  wire 
mesh,  etc.,  supj)orted  thereby  as  well  as  fittings,  stampings,  doors, 
transoms,  sash,  and  accessories  for  use  in  connection  therewith. 

Sec.  3.  The  term  "  Member  of  the  Industry  "  includes,  liut  without 
limitation,  any  individual,  partnership,  association,  corporation,  or 
other  form  of  ent^^rprise  engaged  in  the  industry,  either  as  an  em- 
ployer or  on  his  or  its  own  behalf. 

Sec.  4.  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  Adminis- 
trator  for  Industrial  Recovery. 

Sec.  5.  The  term  "  Basic  Code  "  as  used  herein  is  defined  to  mean 
the  basic  code  of  fair  competition  for  the  Fabricated  Metal  Products 
Manufacturing  and  Metal  Finishing  and  Metal  Coating  Industry  as 
approved  by  the  President  on  the  second  day  of  NoAember  1933. 

(706) 


707 

Sec.  6.  The  term  "  Supplementary  Code  Authority  "  as  used  herein 
is  defined  to  mean  the  agency  established  to  administer  this  Supple- 
mentary Code. 

Sec.  7.  The  term  "Association  "  as  used  herein  is  defined  to  mean 
the  National  Steel  Partition  Association. 

Sec.  8.  The  term  "Agent "  as  used  herein  is  defined  to  mean  a 
sales  agent  who  represents  a  member  of  the  industry  as  an  employee 
in  the  placement  of  contracts  and/or  contacts  the  public  on  behalf 
of  a  member  of  the  Industry. 

Article  III — Employment  Provisions 

Section  1.  This  Industry  is  a  division  of  the  Fabricated  Metal 
Products  Manufacturing  and  Metal  Finishing  and  Metal  Coating 
Industry  and  the  labor  provisions  of  its  Basic  Code  as  approved  by 
the  President  are  the  labor  provisions  of  this  Supplementary  Code. 

Article  IV — Organization  and  Administration 

The  Supplementary  Code  Authority  is  hereby  constituted  to  co- 
operate with  the  Administrator  in  the  administration  of  this  Supple- 
mentary Code. 

Section  1.  The  Supplementary  Code  Authority  shall  consist  of 
seven  (7)  members,  five  (5)  of  whom  shall  be  elected  by  the  mem- 
bers of  the  Association  on  or  before  the  effective  date  of  this  Supple- 
mentary Code  and  two  (2)  of  whom  shall  be  elected  b}^  members  of 
the  Industry  who  are  not  members  of  the  Association,  if  any.  In 
the  event  the  nonmembers  fail  to  elect  either  of  the  latter  two  Avithin 
a  reasonable  time  such  vacancy  shall  l)e  filled  by  the  balance  of  the 
Supplementary  Code  Authority.  In  addition  thereto  there  may  be 
one  (1)  member  appointed  by  the  Administrator  who  shall  be  with- 
X)ut  vote,  and  may  attend  all  meetings  and  shall  be  given  reasonable 
notice  thereof. 

Sec.  2.  Each  trade  or  industrial  association,  directly  or  indirectly 
participating  in  the  activities  of  the  Supplementarv  Code  Authoritv. 
shall  '  ■ 

(a)  Impose  no  inequitable  restriction  on  membership. 

(b)  Submit  to  the  Administrator  true  copies  of  its  Articles  of 
Association.  By-Laws.  Regulations,  and  any  Amendments  when  made 
thereto,  together  with  such  other  information  as  to  membership, 
organization,  and  activities  as  the  Administrator  may  deem  necessary 
to  effect  the  purposes  of  the  Act. 

Sec.  3.  In  order  that  the  Supplementary  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  sliall  find  that  the  Supplementary  Code  Authority  is  not  truly 
representative  or  does  not  in  other  respects  comply  with  the  pro- 
visions of  the  Act.  may  require  an  appropriate  modification  in  the 
method  of  selection  of  the  Supplementary  Code  Authority. 

Sec.  4.  Nothing  contained  in  this  Supplementary  Code  shall  con- 
stitute the  members  of  the  Supplementary  Code  Authority  partners 
for  any  purpose. 


708 


POWERS   AND  DUTIES 


Sec.  5.  The  Supplementary  Code  Authority  shall  have  the  follow- 
ing duties  and  powers : 

(a)  To  elect  officers  and  to  assign  to  them  such  duties  as  it  may 
consider  advisable  and  to  provide  rules  for  its  procedure  and  its 
continuance  as  the  administrative  agency  of  this  Supplementary 
Code,  in  accordance  with  the  terms  of  the  Act  and  the  principles 
herein  set  forth. 

(b)  To  delegate  to  such  trade  associations  and  other  agencies  as 
it  deems  proper  the  carrying  out  of  any  of  its  activities  provided 
for  herein,  and  to  pay  such  agencies  the  cost  thereof,  provided  that 
such  agencies  shall  at  all  times  be  subject  to  and  comply  with  the 
provisions  of  this  Supplementary  Code,  and  provided  further  that 
nothing  contained  herein  shall  relieve  the  Supplementary  Code 
Authorit}^  of  its  responsibilities  under  this  Supplementary  Code. 

(c)  To  coordinate  the  administration  of  this  Supplementary  Code 
with  such  other  Codes,  if  any,  as  may  be  related  to  this  Industry, 
or  an}'  subdivision  thereof,  with  a  view  to  promoting  joint  and 
harmonious  action  upon  matters  of  common  interest. 

(d)  To  delegate  an  impartial  agency  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  Supplementary  Code  and  the  Act. 

(e)  To  cooperate  wdth  the  Administrator  in  regulating  the  use 
of  the  N.R.A.  insignia  solely  by  those  employers  who  have  assented 
to  this  Supplementary  Code  and  have  paid  their  proportionate  share 
of  the  cost  of  administering  this  Supplementary  Code. 

(f)  No  member  of  the  Industry  shall  be  entitled  to  participate 
in  or  share  the  benefits  of  the  activities  of  the  Supplementary  Code 
Authority  or  participate  in  the  selection  of  the  members  thereof- 
unless  he  assents  to  and  complies  with  the  requirements  of  this  Sup- 
plementary Code  and  sustains  his  reasonable  share  of  the  expense 
of  its  administration. 

The  reasonable  share  of  the  expense  of  administration  shall  be 
determined  by  the  Supplementary  Code  Authority,  on  the  basis  of 
volume  of  business  and/or  such  other  equitable  factors  as  the  Sup- 
plementary Code  Authority  may  determine,  subject  to  the  approval 
of  the  Administrator. 

(g)  To  report,  as  the  Basic  Code,  Article  IV.  Section  1,  may  re- 
quire, to  the  Fabricated  Metal  Products  Federation  or  its  successor 
organization. 

(h)  To  set  up  credit  bureaus  and  subdivisions  for  the  collection  of 
bad  accounts. 

(i)  To  have  such  other  powers  and  duties  consistent  with  the  Act 
as  may  be  necessary  for  the  complete  administration  of  this  Supple- 
mentary Code. 

Sec.  6.  If  the  Administrator  shall  determine  that  any  action  of  a 
Supplementary  Code  Authority  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  days  to  afford  an  opportunitj^  for  investigation  of  the  merits 


709 

of  such  action  and  further  consideration  by  such  Supplementary 
Code  authority  or  agency  pending  final  action,  which  shall  be  taken 
only  upon  approval  by  the  Administrator. 

Article  V — Trade  Practices 

Any  member  of  the  Industry  who  shall  directly  or  indirectly, 
through  any  officer,  employee,  agent,  or  representative,  use  or  employ 
any  of  the  unfair  methods  of  competition  set  forth  in  Article  V  of 
the  Basic  Code,  or  in  Article  V  of  this  Supplementary  Code,  shall 
be  guilty  of  a  violation  of  this  Supplementary  Code. 

It  shall  be  an  unfair  trade  practice  for  any  member  of  the 
Industry : 

Section  1.  To  fail  to  comply  with  the.  following  provisions  for  ac- 
counting and  costing  with  respect  to  that  portion  of  his  product 
which  is  within  the  Industry.  Every  member  shall  use  an  account- 
ing system  for  the  purpose  of  determining  allowable  cost  which 
conforms  to  the  principles  of,  and  is  at  least  as  detailed  and  complete 
as.  the  uniform  method  of  accounting,  and  the  uniform  method  of 
costing,  to  be  formulated  by  the  Supplementary  Code  Authority, 
subject  to  the  approval  of  the  Administrator  with  variations  there- 
from as  may  be  required  by  the  individual  conditions  affecting  any 
member  or  group  of  members,  and  as  may  be  approved  by  the  Sup- 
plementary Code  Authority  and  the  Administrator. 

vSec.  2.  To  sell  or  exchange  any  product  of  the  Industry  at  a  price 
or  upon  terms  and  conditions  which  will  result  in  the  purchaser 
paying  for  the  goods  received,  less  than  the  allowable  cost  thereof 
to  the  seller,  determined  in  accordance  with  a  uniform  method  of 
costing  above  described.  Provided  further,  however,  that  a  member 
of  the  industry  may  sell  below  his  own  cost  to  meet  the  competition 
of  a  lower  cost  producer  of  products  of  equivalent  design,  quality, 
or  specifications,  provided  that  when  a  member  of  the  industry  sells, 
or  wishes  to  sell  below  his  own  cost  to  meet  such  competition,  he 
shall  so  report  to  the  Supplementary  Code  Authority  and  shall 
cite  the  competition  which  caused  him  to  take  this  action. 

Sec.  3.  To  fail  to  comply  with  the  following  provisions  for  the 
publication  of  prices : 

(a)  Each  member  of  the  Industry  shall  within  five  days  of  the 
effective  date  of  this  Supplementary  Code  publish  a  complete  price 
list  of  the  products  of  the  Industry  offered  for  sale  by  him,  showing 
all  prices,  terms  and  discounts,  and  copies  of  this  price  list  and/or 
discount  sheets  shall  be  filed  with  the  Supplementary  Code  Author- 
ity, who  shall  immediately  send  copies,  or  portions  tliereof,  to  all 
other  members  of  the  Industry  who  have  assented  to  and  are  com- 
plying with  this  Supplementarv'  Code  and  have  filed  price  lists 
covering  similar  items.  Such  price  lists  and  terms  and  conditions 
of  sale  so  filed  with  the  Supplementary  Code  Authority  shall  be 
open  to  inspection  at  all  reasonable  times  by  any  interested  party. 

(b)  New  and/or  revised  price  lists  and /or  discount  sheets  and/or 
additions  thereto  may  be  filed  at  any  time  thereafter  with  the 
Supplementary  Code  Authority  by  any  member  of  the  Industry  to 
become  effective  on  the  date  specified  therein,  but  such  price  lists 


710 

and/or  diseoiuit  sheets  shall  be  filed  with  the  Supplementary  Code 
Authority  ten  (10)  days  in  advance  of  said  effective  date. 

(c)  Copies  of  such  price  lists  and/or  discount  sheets  or  portions 
thereof,  with  notice  of  the  effective  date  specified  therein,  shall  be 
immediately  sent  to  all  members  of  the  Industry  who  have  filed 
price  lists  on  similar  articles  and  who  are  cooperating  in  this  Sup- 
plementarj'  Code,  who  thereupon  maj^  file  revisions  of  their  own 
published  i3rice  lists  and/or  discount  sheets,  provided  that  their  re- 
vision is  not  for  a  lower  price  or  on  more  favorable  terms  than  that 
set  forth  on  the  revised  price  list  first  filed,  and  said  revision  shall 
become  effective  upon  the  date  when  the  said  revised  price  list  and/or 
discount  sheets  first  filed  shall  go  into  effect. 

(d)  No  member  of  the  Industry  shall  sell,  directly  or  indirectly, 
by  any  means  whatsoever,  anj^  product  of  the  Industry  at  a  price 
or  at  a  discount  or  on  terms  of  payment  other  than  those  provided 
in  his  published  price  list  and/or  discount  sheets. 

(e)  In  any  event  a  member  of  the  Industry  must  certify  to  the 
Supplementary  Code  Authority  in  the  submission  of  all  lists  that 
the  prices  therein  set  forth,  with  any  discounts  thereon,  will  not  cause 
the  sale  of  the  product  below  his  own  allowable  cost,  except  as  here- 
inbefore provided. 

(f)  A  tabulation  of  all  bids  which  on  account  of  bid  bonds  or 
other  reasons  will  remain  effective  beyond  the  effective  date  of  any 
new  or  revised  list  shall  be  submitted  on  or  before  such  effective 
date  to  an  impartial  agency  to  be  designated  by  the  Supplementary 
Code  Authority. 

Sec.  4.  To  fail  to  use  such  standard  form  of  price  lists  including 
the  classification  and  designation  of  all  items  to  appear  thereon,  as 
ma}'  be  authorized  by  the  Supplementary  Code  Authority  and  ap- 
proved by  the  Administrator,  and  to  fail  to  file  within  ten  (10)  days 
of  such  authorization  his  price  list  and  discounts  in  the  form, 
required. 

Sec.  5.  To  sell  or  offer  for  sale  any  product  of  the  Industry  not 
on  his  published  price  list,  without  first  reporting  such  intended  sale 
to  the  Supplementary  Code  Authority,  at  least  five  (5)  days  in 
advance. 

Sec.  6.  To  fail  to  file  with  such  impartial  agency  as  the  Supple- 
mentary Code  Authority  may  designate,  reports  of  such  transactions 
as  may  be  required,  in  the  manner  and  form  and  at  the  time  required. 

Sec.  7.  To  quote  a  lump  sum  price,  including  any  items  not  in 
accord  with  or  included  in  his  published  price  list.  All  quotations 
shall  show  separate  prices  for  the  products  quoted  in  accord  with 
the  price  list  separate  from  the  products  of  other  Industries.  In  no 
case  shall  it  be  made  a  condition  of  the  proposal  or  sale  that  a  lower 
price  will  eventuate  by  purchasing  said  products  in  combination. 

Sec.  8.  To  permit  any  employee  whether  paid  on  commission  or 
otherwise  to  divide  or  offer  to  divide  his  commission,  allowance,  or 
other  compensation  with  a  purchaser  or  prospective  purchaser  either 
directly  or  indirectly,  or  give  any  commission  or  allowance  to  a 
consumer  or  purchaser. 

Sec.  9.  To  make  any  sale  or  offer  of  sale  of  any  product  of  the 
Industr3\  under  any  description  which  does  not  fully  describe  such 


711 

product  in  ternis^  ciistoniaiily  u.--ecl  in  the  Industry,  as  determined 
by  the  Supplementary  Code  Authority. 

Sec.  10.  To  vohmtarily  cancel  in  whole  or  in  part,  or  permit  the 
cancellation  in  whole  or  in  part,  of  any  contract  of  sale  of  any 
product  unless  the  credit  allowed  for  such  cancellation  shall  permit 
the  portion  of  the  contract  actually  furnished  to  be  priced  in  accord- 
ance with  the  published  price  for  such  quantity,  plus  a  fair  consider- 
ation for  all  work  done  or  service  performed  in  connection  with  sucH 
cancellation. 

Sec.  11.  To  assume  or  offer  to  assume  any  responsibility,  and  or 
replace  any  spoiled  materials  and/  or  accept  any  back-char<;es  per- 
taining to  any  phase  of  erection  or  any  accessories,  in  connection 
with  a  sale  or  offer  for  sale  of  any  metallic  wall  structure,  or  part 
thereof,  other  than  installed  complete,  unless  such  responsibility  is 
definitely  and  specifically  fixed  b}-  the  terms  of  the  offer  for  sale  and 
contract  of  sale. 

Sec.  12.  To  submit  any  samples  in  excess  of  25  sq.  ft.  in  area 
other  than  on  premises  regularly  occupied  by  the  member,  unless 
the  member  has  receiAed  an  order  for  such  material  at  his  regularly 
established  prices  or  received  specific  approval  from  the  Supple- 
mentary Code  Authority. 

Sec.  13.  To  quote  alternates  as  lump-sum  prices  where  the  require- 
ments of  a  buyer  are  determined  by  specific  plans  and  specifications 
unless  the  alternates  be  required  by  the  plans  or  specifications.  Al- 
ternates, other  than  those  required  by  the  plans  and  specifications, 
may  be  quoted  as  additions  to  or  deductions  from  a  required  lump- 
sum i^rice,  provided  the  nature  of  the  deviations  from  the  specifica- 
tions or  plans  is  fully  and  distinctly  set  forth. 

Sec.  14.  To  enter  into  term  contracts  covering  a  definite  period 
of  time  for  indefinite  quantities  of  metallic  wall  structures,  without' 
provision  for  reimbursement  for  future  increases  in  cost  of  labor, 
material  or  overhead  expenses  over  those  current  at  time  contract 
is  accepted. 

Sec.  15.  To  accept  an  order  or  contract  except  in  a  form  as  de- 
tailed and  complete  as  that  prescribed  by  the  Supplementary  Code 
Authority,  and  ajDproved  by  the  Administrator. 

Sec.  16.  To  give  a  guarantee  against  defective  materials  and 
workmanship  on  materials  sold,  for  more  than  one  year  from  date 
of  installation. 

Sec.  it.  To  attempt  to  induce  the  breach  of  an  existing  contract 
between  a  comi:)etitor  and  his  employee  or  customer  or  source  of 
supply;  nor  shall  an}"  such  member  interfere  with  or  obstruct  the 
performance  of  such  contractual  duties  or  services. 

Sec.  18.  To  publish  or  circulate  unjustified  or  unwarranted  threats 
of  legal  proceedings  which  tend  to  or  have  the  effect  of  harassing 
competitors  or  intimidating  their  customers.  Failure  to  prosecute 
in  due  course  shall  be  evidence  that  any  such  threat  is  unwarranted 
or  unjustified. 

Sec.  19.  To  sell  or  offer  for  sale,  upon  the  specification  or  request 
of  a  purchaser,  any  product  of  the  Industry  which  includes  contours, 
designs,  or  parts  not  regularly  tooled  and  manufactured  without 
including  the  cost  of  all  tools,  equipment,  engineering  services,  and 


712 

experimental  set  ups  required  to  properly  initiate  the  manufacture 
of  such  products. 

Seo.  20.  To  fail  to  register  Avith  the  Supplementary  Code  Author- 
ity a  list  of  the  names  and  addresses  of  all  agents. 

Article  VI — Modifications 

Section  1.  This  Supplementary  Code  and  all  the  provisions  thereof 
are  expressly  made  subject  to  the  right  of  the  President,  in  accord- 
ance with  the  provision  of  subsection  (b)  of  Section  10  of  the 
National  Industrial  Recovery  Act,  from  time  to  time  to  cancel  or 
modify  any  order,  approval,  license,  rule,  or  regulation  issued  under 
Title  I  of  this  Act  and  specifically,  but  without  limitation,  to  the 
right  of  the  President  to  cancel  or  modify  his  approval  of  this 
Supplementary  Code  or  any  conditions  imposed  by  him  upon  his 
approval  thereof. 

Sec.  2.  This  Supplementary  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  tc 
the  Administrator  and  such  notice  and  hearings  as  he  shall  specify; 
and  to  become  effective  on  approval  by  the  President. 

Article  VII — Monopolies 

No  provision  of  this  Supplementary  Code  shall  be  interpreted  in 
such  way  as  to  permit  conduct  or  operations  tending  to  promote 
monopolies  or  to  eliminate  or  oppress  small  enterprises,  or  to  dis- 
criminate against  them. 

Article  VIII — Price  Increases 

Section  1.  Whereas  the  policy  of  the  Act  to  increase  real  purchas- 
ing power  will  be  made  imioossible  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  IX — Effective  Date 

This  Supplementary  Code  shall  become  effective  five  calendar  days 
after  its  approval  by  the  Administrator  and  shall  continue  in  effect 
until  June  16,  1935.  or  the  earliest  date  prior  thereto  on  which  the 
President  shall,  by  proclamation,  or  the  Congress  shall,  by  Joint 
Resolution,  declare  that  the  emergency  recognized  by  Section  I  of 
the  National  Industrial  Recovery  Act  has  ended. 

Approved  Code  No.  84.     Supplement  No.  1. 
Registry  No.  1123-08. 


Approved  Code  No.  1 — Supplement  No.  1 
SUPPLEMENTARY  CODE  OF  FAIR  COMPETITION 

FOR  THE 

COTTON  CONVERTING  INDUSTRY 

As  Approved  on  January  24,  1934 


ORDER 


Approving    Supplementary    Code    of    Fair    Competition   for   the 

Cotton  Textile  Industry 

An  application  having  been  duly  made  pursuant  to  and  in  full 
compliance  with  the  provisions  of  Title  I  of  the  National  Industrial 
RecoA'ery  Act,  approved  June  16,  1933,  for  approval  of  a  Supple- 
mental Code  to  the  Code  of  Fair  Competition  for  the  Cotton  Textile 
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 
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, 
Adininistrator  for  Industrial  Recovery. 

Approval  recommended : 
A.  D.  Whiteside, 

Division  Administrator. 

Washington,  D.C, 

January  2^,  1,9-34. 

(713) 


40121—34- 


KEPOET  TO  THE  PRESIDENT 

'J1ie  President, 

The  \\hite  House. 

Sir  :  This  is  a  repoit  on  the  Hearing  on  Supplemental  Code  No.  1 
to  the  Cotton  Textile  Code,  containing  trade  practices  relating  to 
the  sale  and  distribution  of  products  of  the  Cotton  Textile  Industry, 
held  in  accordance  with  the  provisions  of  the  National  Industrial 
Recovery  Act,  in  the  Willard  Room  of  the  New  Willard  Hotel  on 
November  23,  1933.  The  Code,  which  is  attached,  was  presented  by 
duly  qualified  and  authorized  representatives  of  the  Industry,  com- 
plying with  statutory  requirements,  said  to  represent  177  out  of 
350  concerns  and  75%  in  volume  of  the  Industry. 

In  accordance  with  the  customary  procedure  every  person  who 
had  filed  a  request  for  an  appearance  was  freely  heard  in  public, 
and  all  statutory  and  regulatory  requirements  were  complied  with. 

The  Code  originally  proposed  was  for  the  Cotton  Converting 
Industry.  To  understand  the  functions  of  converting,  it  must  be 
appreciated  that  the  business  of  merchandising  goods  included  under 
this  Code  involves  an  element  of  speculation  in  style  and  market. 
Where  this  speculation  is  inherent  to  a  marked  degree,  the  function 
of  risk  taking  and  merchandising  has  been  fulfilled  by  concerns 
separate  from  manufacturers  and  producers  of  the  merchandise. 
Where  portions  of  the  business  handled  by  these  converting  firms  are 
found  to  be  of  such  a  nature  that  stability  of  st3de  and  use  lessens 
the  risk  and  where  it  is  not  necessary  to  distribute  the  product  of 
one  manufacturing  establishment  over  a  too-extended  varietA^  of 
outlets,  the  plants  themselves  are  found  to  be  in  competition  with 
the  converters.  Accordingl}',  it  was  found  that  the  converting  in- 
dustry wanted  its  trade  practices  to  cover  original  sale  by  manu- 
facturing plants,  designated  as  "  integrated  producers  ",  while  man- 
ufacturing plants  themselves  wanted  the  sale  of  their  products 
covered,  as  in  most  other  instances,  by  their  oAvn  manufacturing  code. 

To  solve  this  problem,  the  Cotton  Converting  Industry  has  been 
brought  into  the  Cotton  Textile  Code.  It  constitutes  in  essence  part 
of  the  original  sale  of  merchandise  manufactured  under  this  latter 
Code,  rather  than  occupying  the  position  of  jobber  or  distributor. 

THE    INDUSTRY 

The  Industry  comprises  about  350  concerns,  having  an  aggregate 
invested  capital  of  approximately  $200,000,000.  In  1929  the  Industry 
provided  employment  for  10,000  workers.  This  figure  has  declined 
to  about  9,000  employees  in  1933.  The  aggregate  annual  sales  have 
fallen  from  $1,000,000,000  in  1929  to  about  $600,000,000  in  1932. 

(714) 


715 


PROVISIONS  OF  THE  CODK 


While  the  problem  of  employment  from  a  Code  point  of  view  in 
the  Industry  is  a  comparatively  minor  one,  the  orderly  maintenance 
of  the  right  kind  of  market  for  cloth  is  a  help  toward  more  con- 
tinuous emplo3^ment  in  the  weaving  and  finishing  mills  wiiich  supply 
this  market.  Accordingly,  the  trade  practices  submitted  in  the  pro- 
posed supplemental  Code  have  been  given  careful  study.  They  have 
been  assented  to  by  the  preponderant  majority  of  the  Converting 
Industry,  and  by  the  Cotton  Textile  Industry  Committee,  subject  to 
individual  members  of  the  Industry  having  the  right  to  make  their 
own  objections.  Such  objections  have  been  dul}^  heard.  The  pro- 
visions offered  herewith  are  not  nearly  as  restrictive  in  many  cases 
as  those  proposed.  They  are,  however,  corrective  of  certain  ad- 
mitted abuses  and  are  an  attempt  at  self-regulation  on  the  part 
of  the  Industry,  while  containing  no  provisions  likely  to  constitute 
a  burdensome  hampering  of  trade. 

FTXDIXGS 

The  Deputy  Administrrttor  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  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  go'i'ernmental  sanctions  and  supervision,  by  elimi- 
nating 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  tempo- 
rarily required),  by  increasing  the  consumption  of  industrial  and 
agricultural  i^roducts  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  Avithout  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. 


716 

(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, 

Administrator. 
January  24.  1934. 


SUPPLEMENTARY  CODE  OF  FAIR  COMPETITION  FOR 
THE  COTTON  TEXTILE  INDUSTRY 

To  effectuate  the  policies  of  Title  I  of  the  National  Industrial 
Recovery  Act  (hereinafter  referred  to  as  the  "Act"'),  the  following 
provisions  are  established  as  Supplemental  Code  No.  1  to  the  Code 
of  Fair  Competition  for  the  Cotton  Textile  Industry,  to  deal  with 
trade  practices  in  the  sale  and  distribution  of  the  products  of  that 
Industry,  and  shall  be  the  standard  of  fair  competition  for  such 
Industr}'  in  respect  of  such  sale  and  distribution,  and  shall  be  bind- 
ing upon  every  member  thereof  in  the  manner  and  to  the  extent 
therein  provided. 

I.  Definitioii-s. —  (1)  "  Master  Code  "  means  the  Code  of  Fair  Com- 
petition for  the  Cotton  Textile  Industr}',  finalh'  approved  July  16, 
1933,  as  heretofore  or  hereafter  amended. 

(2)  "  Branch  of  the  Industry  "  means  the  sale  and  distribution  at 
wholesale  of  products  of  the  Cotton  Textile  Industry  by  any  concern 
insofar  as  it  does  manufacturing  and/or  finishing  of  the  same  for  its 
own  account  or  the  account  of  others  or  has  the  same  finished  by 
others  for  its  own  account  or  for  the  account  of  others,  or  by  a 
commission  house  or  broker  acting  for  same. 

(3)  "Member  of  branch  of  the  Industry"  means  any  business 
entity  engaged  in  this  branch  of  the  Industry. 

(4)  •'  Finished  goods  "  means  grey  a:oods,  products  of  the  Cotton 
Textile  Industry,  after  being  processed  or  finished  in  the  completed 
fabrics  as  intended  for  use. 

II.  All  members  of  this  branch  of  the  Industry'  shall  be  subject 
to  and  comply  with  the  provisions  of  the  Master  Code  in  addition 
to  the  applicable  provisions  of  this  Supplemental  Code. 

III.  There  shall  be  constituted  at  this  time  in  this  branch  of  the 
Industry  the  following  divisions  of  finished  goods,  the  precise  scope 
of  these  divisions  being  further  defined  in  Section  V  hereof : 

1.  Clothiers'  Linings  (other  than  all-cotton). 

2.  Corset,  Brassiere,  and  Allied  Trades  Fabrics. 

3.  All-Cotton  Clothing  Lining. 

4.  Curtain  and  Drapery  Fabrics. 

5.  Shirtings. 

6.  Wash  Goods. 

7.  Interlinings. 

Anything  herein  or  in  Section  V  hereof  to  the  contrary  notwith- 
standing the  foregoing  divisions  shall  not  include  the  following: 
Moleskins  and  corduroys; 

Bleached  wide  sheetings,  sheets,  pillow  cases,  dyed  ducks: 
Unbleached,    bleached,    colored,    dyed    and    printed    flannels, 
suedes  and  duveteens: 

l^  (717) 


718 

Outerwear  material  such  as  mineral  and  sulphur  khakis, 
ducks,  smnnier  suitings,  pantaloonings,  raincoatings,  water- 
proof clothing  fabrics,  and  all  other  converted  fabrics  for 
similar  purposes; 

Towelling,  crashes,  and  plain  bleached  Terry  Cloths ; 

Table  damask  and  napkin  fabrics; 

Birdseye  and  diaper  cloths. 

IV.  All  members  of  this  branch  of  the  Industry  insofar  as  tlieir 
activities  fall  within  any  of  the  divisions  enumerated  in  Section  III 
hereof  shall  comply  with  the  following  general  rules  of  trade  practice  : 

1.  The  secret  payment  or  allowance,  directly  or  indirectly,  or  by 
any  scheme,  method,  or  device,  of  rebates,  refunds,  commissions, 
credits,  or  unearned  discounts,  whether  in  the  form  of  money  or 
otherwise,  or  the  secret  extension  to  certain  purchasers  of  special 
services  or  privileges  not  extended  to  all  purchasers  on  like  terms 
and  conditions  is  prohibited. 

2.  The  false  marking  or  branding  of  any  product  which  has  the 
tendency  to  mislead  or  deceive  customers  or  prospective  customers 
in  any  way  whatsoever  is  prohibited. 

3.  The  imitation  of  a  trade  mark,  trade  name,  slogan,  or  the  other 
marks  of  identitication  of  competitors,  having  the  tendency  and 
capacity  to  mislead  or  deceive  is  prohibited. 

4.  Upon  approval  of  the  Administrative  Committee  of  a  plan  of 
registration,  members  of  this  branch  of  the  Industry  may  register 
with  the  Textile  Fabrics  Association  the  following:  Jacquard  de- 
signs, twenty-harness  dobby  designs,  prints,  and  such  other  designs 
or  styles  as  may  be  considered  as  novel.  Upon  registration,  such 
designs  or  styles  shall  be  confined  to  the  registrant  for  a  six-month 
period  and  for  an  additional  six  months  thereafter,  if  wdthin  the 
first  six-month  period  the  registrant  can  demonstrate  to  the  satis- 
faction of  the  Administrative  Committee  that  he  has  caused  the 
manufacture  in  further  quantity  of  said  design,  i)attern,  or  style. 
At  the  end  of  the  second  six  months'  ownership  period,  the  registrant 
may  obtain  renewals  of  all  rights  to  such  design,  pattern,  or  style 
by  semiannual  re-registration,  A  proper  registration  fee  will  be 
determined  by  the  Administrative  Committee. 

No  member  of  this  branch  of  the  Industry  shall  commit  or  be  a 
party  to  the  piracy  of  any  design,  pattern,  or  style  originated  by 
another  member  of  the  Industry  in  a  form  sufficiently  like  the 
original  to  be  mistaken  for  it,  or  the  sale  thereof,  or  sell  or  quote 
on  the  pattern,  design,  or  style  of  another  member  of  the  Industry. 

V.  Members  of  this  branch  of  the  Industry  insofar  as  their  activi- 
ties fall  within  any  of  the  divisions  described  in  Section  III  shall 
comply  with  the  particular  rules  applicable  to  such  divisions  as 
follows : 

Division  1 

CLOTHIERS'  LININGS  (OTHER  THAN  ALL  COTTON) 

DEFINITION 

The  products  included  in  this  Division  are  body  and/or  sleeve  lin- 
ings (other  than  all  cotton)  for  use  by  manufacturers  of  men's  and 
boys'  clothing,  and  also  by  book  tailor  and  trimming  establishment?*. 


719 

TRADE  PRACTICES 

1.  Terms  of  sale  shall  not  exceed  net  CO  E.O.M..  except  that  bills 
im  and  after  the  25th  of  the  month  may  be  dated  as  of  the  1st  of  the 
following  month.  Anticipation  may  be  allowed  at  a  rate  not  to 
■exceed  6%  per  annum.  Sample  pieces  shipped  on  memorandum 
shall  be  billed  retroactively  as  of  date  of  shipment. 

Where,  subsequent  to  date  of  sale,  a  credit  situation  previously 
unknown  to  seller,  should  render  impossible  adherence  to  this  kSec- 
tion.  these  provisions  may  be  relaxed  upon  approval  of  application 
to  Divisional  Committee. 

2.  Deliveries. — All  iroods  shall  be  sold  F.O.B.  finisher  or  main 
office  registered  with  the  Textile  Fabrics  Association. 

3.  Uniform  Contract. — The  provisions  of  a  sales  note  recom- 
mended by  the  Divisional  Committee  and  the  Administrative  Com- 
mittee, when  approved  by  the  Code  Authority  and  the  Administra- 
tor, shall  be  used  and  adhered  to  on  all  sales  for  future  delivery. 

4.  The  Divisional  Committee  may  make  recommendations :  (1)  For 
the  use  by  all  members  of  the  Division  of  a  system  of  cost  accounting 
at  least  as  detailed  and  complete  as  a  standard  system  of  cost  account- 
ing adopted  by  the  Divisional  Committee.  (2)  For  regulation  of 
sale  below  cost  when  and  if  same  may  be  so  determined,  but  nothing 
herein  contained  shall  limit  the  right  to  sell  seconds,  out-of -fashion, 
distress,  and  shopworn  goods,  when  so  billed. 

Such  recommendations  (numbers  1  and  2,  supra)  when  approved 
by  the  Administrative  Committee,  the  Code  Authority,  and  the 
Administrator,  shall  have  the  same  force  and  effect  as  the  other 
provisions  of  this  Supplemental  Code. 

The  above-mentioned  recommendations  must  be  communicated  by 
the  Divisional  Committee  to  all  members  of  said  Division  not  less 
than  ten  days  prior  to  date  of  submission  of  Divisional  Committee's 
recommendations  to  the  Administrative  Committee  or  other  superior 
agency. 

5.  No  merchandise  ma}'  be  sold  on  consignment,  nor  may  any 
method  of  selling  be  used  which  has  the  effect  of  selling  on  consign- 
ment or  memorandum.  Sample  pieces  to  manufacturers  for  inspec- 
tion are  exempt  from  the  application  of  this  rule.  The  Divisional 
Committee  shall  have  the  power  to  suspend  the  operation  of  the 
provisions  of  this  Section. 

6.  Xo  stock  protection  or  price  guarantee  shall  be  given. 

7.  Sales  offices  shall  not  be  open  for  the  transaction  of  business  on 
Saturdays  and  Sundays. 

Division    2 
CORSET,  BRASSIERE,  AND  ALLIED  TRADES  FABRICS 

DEFIXITION 

The  products  included  in  this  Division  are  those  sold  for  use  in 
the  manufacture  of  corsets,  girdle  corsets,  step-in  corsets,  brassieres, 
bandeaux-brassieres,  corsets,  girdle  corsets,  or  step-in  corsets  attached 
to  brassieres  or  bandeaux-brassieres  and  all  similar  body-supporting 
garments,  and  in  the  manufacture  and  supply  of  accessories  such  as 


720 

shields,  stripping,  binding,  tabs,  hook-and-eye  cloth,  etc.,  cut  from 
converted  cloths,  entering  into  or  used  with  such  finished  products. 

TRADE    I'RACTICES 

1.  Terms  of  sale  shall  not  exceed  2% — 10  days,  60  extra ;  or  3% — 10 
days,  or  3% — C.O.D.  No  extra  dating  shall  be  allowed.  Anticipa- 
tion shall  be  at  legal  rate  of  interest.  Past  due  payments  shall  carry 
interest  at  legal  rate  from  date  of  maturity. 

2.  DeliveHes. — All  goods  shall  be  sold  F.O.B.  point  of  origin. 
In  the  case  of  shipments  from  finished  stock  carried  in  New  York 
City  the  point  of  origin  is  the  bleachery,  dye  Avorks,  and/or  finish- 
ing plant  at  which  the  goods  were  processed. 

3.  Uniform  Contract. — The  provisions  of  a  sales  note  recommended 
by  the  Divisional  Committee  and  the  Administrative  Committee, 
when  approved  by  the  Code  Authority  and  the  Administrator,  shall 
be  used  and  adhered  to  on  all  sales  for  future  delivery. 

4.  Sample  Requirements. — Each  sample  cut  in  excess  of  one-half 
yard  in  length  furnished  customers  shall  be  charged  for  at  regular 
sales  price  of  the  fabric. 

5.  No  merchandise  may  be  sold  on  consignment,  nor  may  any 
method  of  selling  be  used  which  has  the  effect  of  selling  on  con- 
signment or  memorandum.  Sample  pieces  to  manufacturers  for 
inspection  are  exempt  from  the  application  of  this  rule.  The  Divi- 
sional Committee  shall  have  the  power  to  suspend  the  operation  of 
the  provisions  of  this  Section. 

6.  No  stock  protection  or  price  guarantee  shall  be  given. 

7.  Sales  offices  shall  not  be  open  for  the  transaction  of  business 
on  Saturdays  and  Sundays. 

8.  With  respect  to  goods  made  entirely  from  synthetic  yarns  or 
goods  made  from  synthetic  yarns  mixed  only  with  silk  and  pro- 
duced by  the  seller's  own  manufacturing  facilities,  the  applicable 
provision  of  the  Silk  Textile  Code  with  respect  to  terms  of  sale  and 
delivery  may  be  substituted  for  the  provisions  of  terms  of  sale  and 
delivery  for  this  Division. 

Division  3 
ALL-COTTON  CLOTHING  LININGS 

DEFINITION 

The  products  included  in  this  Division  are  all-cotton  clothing  lin- 
ings for  use  by  manufacturers  of  men's  and  boj^s'  clothing,  tailor 
trimming  houses,  and  book  tailor  and  trimming  establishments. 

TRADE   PRACTICES 

1.  Tei-ms  of  sale  shall  not  exceed  2%,  60  days,  E.O.M.  3%,  10 
days,  E.O.M.  Goods  shipped  on  or  after  the  25th  of  the  month  may 
be  billed  as  of  the  1st  of  the  following  month.  Interest  at  the  rate  of 
6%  per  annum  shall  be  charged  on  all  accounts  past  due.  Sample 
pieces  shipped  on  memorandum  shall  be  billed  retroactively  as  of 
date  of  shipment. 


721 

2.  Delivenes. — All  good«  shall  be  sold  F.O.B.  mill,  with  the  ex- 
ception of  sales  made  from  open  stock  at  main  office,  shippin<^  point, 
or  established  main  depository  whicli  may  be  made  F.O.B.  such 
main  office,  shipping  point,  or  established  main  depository,  provided 
it  is  registered  with  the  Textile  Fabrics  Association. 

3.  Uniform  Contract. — The  provisions  of  a  sales  note  recommended 
by  the  Divisional  Committee  and  the  Administrative  Committee, 
when  approved  by  the  Code  Authority  and  the  Administrator  shall 
be  used  and  adhered  to  on  all  sales  for  future  delivery. 

4.  The  Divisional  Committee  may  make  recommendations:  (1) 
for  the  use  by  all  memliers  of  the  Division  of  a  system  of  cost 
accounting  at  least  as  detailed  and  complete  as  a  standard  system 
of  cost  accounting  adopted  by  the  divisional  Committee,  and  (2)  for 
regulation  of  sales  below  cost  when  and  if  same  may  be  so  deter- 
mined. Such  recommendations,  when  approved  bj^  the  Adminis- 
trative Committee,  the  Code  Authority,  ancl  the  Administrator,  shall 
have  the  same  force  and  effect  as  the  other  provisions  of  this  Supple- 
mental Code. 

5.  Price  Reporting. — Wiihin  thirty  days  after  a  majority  vote 
of  this  Division,  all  members  thereof  shall  file  with  the  Textile  Fab- 
rics Association  a  schedule  of  prices  and  terms  covering  the  sale 
of  their  standard  numbers  sold  in  the  previous  week;  such  schedule 
to  specify  prices  on  different  items  (classified  according  to  quantity 
thereof),  as  may  have  been  voted  upon  by  the  Division. 

Such  reports  shall  be  prepared  in  summary  form  and  submitted 
in  this  form  to  each  member  of  the  Division  in  such  a  manner  as 
not  to  divulge  the  operations  of  any  individual  member.  The  Di- 
visional Committee  shall  have  the  power  to  suspend  the  operation 
of  the  provisions  of  this  Section.  All  members  of  the  Division  shall 
be  notified  by  telegraph  if  the  provisions  of  this  Section  are  so 
suspended. 

6.  No  merchandise  may  be  sold  on  consignment,  nor  may  any 
method  of  selling  be  used  which  has  the  effect  of  selling  on  con- 
signment or  memorandum.  Sample  pieces  to  manufacturers  for 
inspection  are  exempt  from  the  application  of  this  rule.  The  Divi- 
sional Committee  shall  have  the  power  to  suspend  the  operation  of 
the  provisions  of  this  Section. 

7.  No  stock  protection  or  price  guarantee  shall  be  given. 

8.  Sales  offices  shall  not  be  open  for  the  transaction  of  business  on 
Saturdaj^s  and  Sundays. 

Division  4 
CURTAIN  AND  DRAPERY   FABRICS 

DEFINITIOX 

The  products  included  in  this  Division  are  converted  cotton  and 
cotton  mixture  curtain  and  drapery  fabrics,  including  these  same 
fabrics  when  sold  to  other  cutting  trades  and/or  wholesale,  retail, 
chain  stores,  and/or  mail-order  distributors;  but  exclusive  in  all 
cases  of  cloth  manufactured  on  bobbinette  or  lace  machines. 


722 

TRADE   PRACTICES 

1.  I'erms  of  sale  to  the  manufacturing,  chain-store,  mail-order, 
and  retailers  trade  shall  not  exceed  2%,  10  days,  60  extra,  or  3%, 
10  days;  no  extra  dating.  Goods  shipped  on  and  after  the  25tli  of 
the  month  may  be  billed  as  of  the  first  of  the  following  month. 
Terms  of  Sale  to  jobbers  shall  not  exceed  2%,  10  days,  60  extra,  or 
3%,  10  days;  June  deliveries  may  be  billed  2%,  10  days  October  Ist; 
December  deliveries  may  be  billed  2%,  10  days  April  1st. 

2.  Deliveries. — All  goods  sold  to  wholesalers,  jobbers,  chain  stores, 
mail-order  houses,  and  manufacturers  shall  be  sold  F.O.B.  mill.  All 
goods  sold  to  retailers  shall  be  sold  F.O.B.  mill  or  main  warehouse, 
provided  the  location  of  such  main  warehouse  shall  be  registered 
with  the  Textile  Fabrics  Association. 

3.  Sample  Requirements. — Any  form  of  sample  requirement  may 
be  supplied  free  only  to  wholesalers  and  not  to  exceed  2%  of  the 
original  order.  All  other  sample  requirements  shall  be  charged  for 
at  full  cost,  calculating  fabric  at  sales  price,  and  shall  include  de- 
livery charge;  provided  that  it  is  permissible  to  furnish  one  set  of 
reference  samples  without  charge  to  each  district  office  of  chain- 
store  organizations  where  such  district  offices  exist,  or  one  set  to  the 
main  office  of  any  chain  organization  not  having  district  offices. 
Only  one  swatch  less  than  1^  yards  in  length  of  any  one  style  shall 
be  given  free  to  one  customer.  All  swatches  above  1^2  yards  shall 
be  paid  for  at  sales  price  of  the  fabric. 

4.  Advertising  Allowances. — No  advertising  allowances  are  per- 
mitted. 

5.  No  merchandise  may  be  sold  on  consignment,  nor  may  any 
method  of  selling  be  used  which  has  the  effect  of  selling  on  con- 
signment or  memorandum.  Sample  pieces  to  manufacturers  for 
inspection  are  exempt  from  the  application  of  this  rule.  The  Divi- 
sional Committee  shall  have  the  power  to  suspend  the  operation  of 
the  provisions  of  this  Section. 

6.  No  stock  protection  or  price  guarantee  shall  be  given. 

7.  Sales  offices  shall  not  be  open  for  the  transaction  of  business  on 
Saturdays  and  Sundays. 

Division  5 
SHIRTINGS 

DEFINITION 

The  products  included  in  this  Division  are  shirting  fabrics  for 
use  by  manufacturers  of  shirts,  pajamas,  underwear,  boys'  blou,ses, 
and  similar  wearing  apparel,  inchiding  these  same  fabrics  Avhen  sold 
to  other  cutting  trades  and/or  wholesale,  retail,  and/or  mail-order 
distributors. 

TRADE  PRACTICES 

1.  Terms  of  Sale  shall  not  exceed  2%,  10  days,  60  extra,  or  214%, 
10  days,  30  extra,  or  3%  C.O.D.,  or  2>%.  10  days,  effective  from  date 
of  invoice  or  shipment,  whichever  is  earlier,  no  extra  dating. 

Interest  shall  be  charged  at  6%  on  all  past  due  accounts,  such 
charge  starting  at  maturity  period. 


723 

Anticipation  may  be  allowed  at  a  rate  not  to  exceed  6%  per 
annum. 

2.  Deliveries. — All  goods  shall  be  sold  F.O.B.  point  of  origin. 

3.  Sample  Requirements. — All  sample  requirements  including  sam- 
ple cuts  shall  be  charged  to  customer  at  full  cost ;  fabric  to  be  figured 
at  sales  price.  Reference  sets  not  to  exceed  three  (3)  in  number  may 
be  furnished  free;  size  of  swatches  not  to  exceed  2  X  4"  and  not  to 
be  mounted  on  customer's  cards;  all  reference  sets  to  be  plainly 
marked  "  For  Reference  Only." 

4.  AdvertisiiK/  Allowances. — Fabric  demonstration,  or  allowance 
therefor,  or  advertising  allowances  in  any  form  whatsoever,  are  pro- 
liibited. 

5.  Oj^tions. — No  options  shall  be  given. 

6.  Sale  of  Goods  t>y  Construction. — When  finished  goods  are  sold 
on  basis  of  grey  construction,  grey  width,  count  and  weight,  shall  be 
shown  on  confirmation  of  order  and  invoice. 

7.  No  merchandise  may  be  sold  on  consignment,  nor  may  any 
method  of  selling  be  used  which  has  the  effect  of  selling  on  consign- 
ment or  memorandum.  Sample  pieces  to  manufacturers  for  inspec- 
tion are  exempt  from  application  of  this  rule.  The  Divisional  Com- 
mittee shall  have  the  power  to  suspend  the  operation  of  the 
provisions  of  this  Section. 

8.  No  stock  protection  or  price  guarantee  shall  be  given. 

9.  Sales  offices  shall  not  be  open  for  the  transaction  of  business  on 
Saturdays  and  Sundays. 

10.  AVith  respect  to  goods  made  entirely  from  synthetic  yarns  or 
goods  made  from  synthetic  yarns  mixed  only  with  silk  and  produced 
by  the  seller's  own  manufacturing  facilities,  the  ajDplicable  provi- 
sions of  the  Silk  Textile  Code  with  respect  to  terms  of  sale  and 
delivery  may  be  substituted  for  the  provisions  of  terms  of  sale  and 
delivery  for  this  Division. 

Division   6 
WASH  GOODS 

DEFINITION 

The  products  included  in  this  Division  are  wash  goods  for  use  by 
manufacturers  of  men's,  women's,  and  children's  apparel  including 
these  same  fabrics  when  sold  to  other  cutting  trades  and/or  whole- 
sale, retail,  and/or  mail  order  distributors. 

TRADE    PKACTICES 

1.  Terms  of  Sole  shall  not  exceed  2%,  10  days,  60  extra,  or  21/0%, 
10  days,  30  extra,  or  3%  C.O.D.,  or  3%,  10  days,  effective  from 
date  of  invoice  or  shipment,  whichever  is  earlier;  no  extra  dating 
to  be  allowed.  Interest  shall  be  charged  at  6%  on  all  past  due 
accounts,  such  charge  starting  at  maturity  of  bill.  Anticipation  may 
be  allowed  at  a  rate  not  to  exceed  6%  per  annum. 

2.  Deliveries. — All  goods  shall  be  sold  F.O.B.  point  of  origin,  with 
the  exception  of  goods  sold  to  retailers  and  chain  stores  which  shall 
be  sold  F.O.B.  plant  or  main  warehouse  registered  with  the  Textile 
Fabrics  Association. 


■      724 

3.  Sample  Requirements. — All  sample  requirements  furnished  job- 
bers, catalog  houses,  chain  stores  and  manufacturers,  shall  be  charged 
at  full  cost,  calculating  fabric  furnished  at  sales  price.  Reference 
sets  not  to  exceed  three  in  number  to  any  one  customer  may  be  fur- 
nished free  of  charge  on  request. 

4.  Advertising  Allowances — Fabric  demonstration,  or  allowances 
therefor,  or  advertising  allowances  in  any  form,  shall  be  prohibited. 

5.  Options. — No  options  shall  be  given. 

6.  No  merchandise  may  be  sold  on  consignment,  nor  may  anj'  method 
of  selling  be  used  which  has  the  effect  of  selling  on  consignment  or 
memorandum.  Sample  pieces  to  manufacturers  for  inspection  are 
exempt  from  the  application  of  this  rule.  The  Divisional  Connnittee 
shall  have  the  power  to  suspend  the  operation  of  the  provisions  of 
this  Section, 

7.  No  stock  protection  or  price  guarantee  shall  be  given. 

8.  Sales  offices  shall  not  be  open  for  the  transaction  of  business  on 
Saturdays  and  Sundays. 

9.  With  respect  to  goods  made  entirely  from  sj^nthetic  yarns  or 
goods  made  from  synthetic  yarns  mixed  only  with  silk  and  produced 
by  the  seller's  own  manufacturing  facilities,  the  applicable  provisions 
of  the  Silk  Textile  Code  with  respect  to  terms  of  sale  and  delivery 
may  be  substituted  for  the  provisions  of  terms  of  sale  and  delivery 
for  this  Division. 

Division  7 
INTERLININGS 

DEFINITION 

The  products  included  in  this  Division  are  fabrics  made  from 
tobacco  cloths,  print  cloths,  sheetings,  twills,  drills,  osnaburgs,  and 
ducks,  but  only  where  these  finished  fabrics  are  used  for  interlining 
purposes  for  garments. 

TRADE  PRACTICES 

1.  Terms  of  sale  shall  not  exceed  2%,  10  days,  60  extra,  or  3%,  10 
days,  or  3%  C.O.D.,  effective  from  date  of  invoice  or  shipping  memo- 
randum, whichever  is  the  earlier.  No  extra  dating  shall  be  allowed. 
Anticipation  shall  be  at  the  legal  rate  of  interest.  Past  due  pay- 
ments shall  carry  interest  at  the  legal  rate  from  date  of  maturity. 

2.  Deliveries. — All  goods  shall  be  sold  F.O.B.  point  of  origin.  In 
the  case  of  shipments  from  finished  stock  carried  in  New  York  City, 
the  point  of  origin  is  the  bleachery,  dve  works,  and/or  finishing 
plant  at  which  the  goods  were  processed. 

3.  No  merchandise  may  be  sold  on  consignment,  nor  may  any 
method  of  selling  be  used  which  has  the  effect  of  selling  on  consign- 
ment or  memorandum.  Sample  pieces  to  manufacturers  for  inspec- 
tion are  exempt  from  the  application  of  this  rule.  The  Divisional 
Committee  shall  have  the  power  to  suspend  the  operation  of  the 
provisions  of  this  Section. 

4.  No  stock  protection  or  price  guarantee  shall  be  given. 

5.  Sales  offices  shall  not  be  open  for  the  transaction  of  business 
on  Saturdays  and  Sundays. 


725 

XL  Adminhtration. — For  the  purpose  of  the  general  iuhiiinistra- 
tion  of  the  divisions  enumerated  in  Article  III.  there  shall  be  con- 
stituted by  the  Code  Authority  an  Administrative  Committee  which 
shall  have  such  duties  and  powers  as  the  Code  Authority  may 
delegate. 

There  shall  be  established  bv  the  Administrative  Committee  a 
Divisional  Committee  in  each  oi  such  divisions  with  such  duties  and 
powers  in  each  case  as  the  Administrative  Committee  may  delegate. 

The  Administrator  shall  have  the  right  to  appoint  not  more  than 
three  members,  without  vote,  to  the  Administrative  Committee  and 
the  Divisional  Committees  who  shall  serve  without  expense  to  the 
Industr5\ 

If  the  Administrator  shall  determine  that  any  action  of  the  Ad- 
ministrative Committee  or  a  Divisional  Committee  or  any  agency 
thereof  is  unfair  or  unjust  or  contrary  to  the  public  interest,  the 
Adminstrator  may  require  that  such  action  be  suspended  for  a  period 
of  not  to  exceed  thirty  (30)  days  to  afford  an  opportunity  for  in- 
vestigation of  the  merits  of  such  action  and  further  consideration 
by  such  Administrative  Committee  or  Divisional  Committee  or 
agency  pending  a  final  action,  which  shall  be  taken  only  upon 
approval  b}^  the  Administrator. 

VII.  The  provisions  for  trade  practices  prescribed  in  Article  IV 
and  V  hereof  are  subject  to  such  changes,  modifications,  and  addi- 
tions as  ma}'  be  recommended  to  the  Code  Authority  by  the  Ad- 
ministrative Committee  and  approved  by  the  Administrator,  but  no 
change  affecting  a  division  shall  be  submitted  for  the  approval  of 
the  Administrator  without  the  approval  of  the  Divisional  Com- 
mittee of  the  Division  affected. 

VIII.  The  Code  Authority  may  from  time  to  time  establish  such 
additional  divisions  dealing  with  other  activities  of  this  branch  of 
the  Industry  as  may  seem  desirable  and,  subject  to  the  approval  of 
the  Administrator,  may  provide  for  the  formulation  of  such  trade 
practices  applicable  to  such  additional  divisions  and  for  their  ad- 
ministration in  such  manner  as  may  seem  desirable. 

IX.  Members  of  the  Industry  approve  of  the  policy  of  arbitrating 
all  disputes  wherever  possible  and  the  Administrative  Committee 
is  hereby  designated  the  agency  to  assist  in  bringing  about  such  ar- 
bitration as  to  any  matters  arising  in  the  Divisions  enumerated  in 
Article  III. 

X.  This  Supplemental  Code  and  all  the  provisions  thereof  are 
expressl}'^  made  subject  to  the  right  of  the  President,  in  accordance 
with  the  provisions  of  subsection  (b)  of  Section  10  of  the  National 
Industrial  Recovery  Act,  from  time  to  time  to  cancel  or  modify  any 
order,  approval,  license,  rule,  or  regulation  issued  under  Title  I  of  said 
Act.  and  specifically,  but  without  limitation,  to  the  right  of  the 
President  to  cancel  or  modify  his  approval  of  this  supplemental  code 
or  any  conditions  imposed  by  him  upon  his  approval  thereof. 

XL  This  Supplemental  Code  shall  become  effective  on  the  second 
Monday  after  its  approval  by  the  President  of  the  United  States. 

Aiiproved  Code  No.  1 — Supplement  No.  1. 
liefiistry  No.  290-2n. 


Approved   Code    No.   84.     Supplement    No.    2 
SUPPLEMENTARY  CODE  OF  FAIR  COMPETITION 


FOR  THE 


HAND  CHAIN  HOIST  MANUFACTURING 

INDUSTRY 

As  Approved  on  January  30,  1934 


ORDER 


Approving    S'upplementai?y   Code   of   Fair    Competition   for  the 
Hand  Chain  Hoist  Manufacturing  Industry 

A  division  of  the  fabricated  metal  products  manufacturing  and 

METAL    finishing    AND    METAL    COATING    INDUSTRY 

An  application  havin<>-  been  duly  made  pursuant  to  and  in  full 
compliance  with  the  provisions  of  Title  I  of  the  National  Industrial 
Recover}'  Act,  approved  June  16,  1938,  and  in  accordance  with  the 
provisions  of  Section  I  of  Article  VI  of  the  Basic  Code  for  the 
Fabricated  Metal  Products  Manufacturing  and  Metal  Finishing 
and  ^Nletal  Coating  Industry,  approved  November  2,  1933.  for  ap- 
proval of  a  Supplementary  Code  of  Fair  Competition  for  the  Hand 
Chain  Hoist  Manufacturing  Industry;  and  hearings  having  been 
duly  held  thereon;  and  the  annexed  report  on  said  Supplementary 
Code,  ccmtaining  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 
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  Supplementary  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  Supplementary  Code  of  Fair  Competition  be  and  it  is 
hereby  approved;  provided,  however,  that  the  provisions  of  Article 
V.  Section  2.  insofar  as  they  prescribe  a  waiting  period  between 
the  filing  with  the  Code  Authority  (i.e.,  actual  receipt  by  the  Code 
Authority)  and  the  effective  date  of  revised  price  lists  or  revised 
terms  and  conditions  of  sale  be  and  they  are  hereby  stayed  for  a 

(727) 


728 

period  of  sixty  days  or  pending  the  completion  of  a  study  now  being 
conducted  by  the  National  Kecovc)  y  Administration,  and  at  the 
end  of  such  period  said  provisions  sliall  become  effective  unless  I, 
by  my  further  Order,  otherwise  determine. 

Hugh  S.  Johnson, 
Administrator  for  Industrial  Recovery. 

Apj)roval  recommended : 
W.  A.  Harriman, 

Division  Administrator. 

Washington,  D.C, 

January  SO.,  193 Jf.. 


REPORT  TO  THE  PRESIDENT 

The  President. 

The  Whffe  House. 

Sir:  This  is  a  rejjoit  on  the  Su})pleineiitarv  Code  of  Fair  Compe- 
tition for  the  Hand  Cliain  Hoist  Manufacturing  Industry,  a  division 
of  the  Fabricated  Metal  Prochicts  Manufacturinoi:  and  Metal  Finish- 
ing and  ^Nletal  Coating  Industry,  the  hearing  having  been  conducted 
thereon  in  Washington.  D.C..  December  16,  1933,  in  accordance  with 
the  provisions  of  Title  I  of  the  Xational  Industrial  Recovery  Act. 

GEXERAL  STATEMENT 

The  Hand  Chain  Hoist  Manufacturing  Industry,  being  truly 
representative  of  this  division  of  the  Fabricated  Metal  Products 
Manufacturing  and  Metal  Finishing  and  Metal  Coating  Industry, 
has  elected  to  avail  itself  of  the  option  of  submitting  a  Supple- 
mentary Code  of  fair  practice,  as  provided  for  in  Section  I  of 
Article'  VI  of  the  Basic  Code,  for  the  Fabricated  Metal  Products 
Manufacturing  and  Metal  Finishing  and  Metal  Coating  Industry 
approved  by  you  on  the  second  day  of  November  1933. 

RESUME   OF   THE    CODE 

Article  I  states  the  })urpose  of  the  Supplementary  Code. 

Article  II  accurately  defines  specific  terms  employed  in  the  Supple- 
mentary Code. 

Article  III.  This  Industry  is  a  division  of  the  Fabricated  Metal 
Products  Manufacturing  and  Metal  Finishing  and  Metal  Coating 
Industry  and  the  labor  provisions  of  its  Basic  Code,  as  approved 
November  2,  1933.  ai-e  the  labor  provisions  of  this  Supplementary 
Code. 

Article  IV  establishes  a  Supplementary  Code  Authority  consisting 
of  the  five  (5)  members  of  the  Board  of  Trustees  of  the  Hand  Chain 
Hoist  Institute,  Inc..  or  its  successor  and  one  member  chosen  from 
the  Industry  by  the  vote  of  the  members  thereof,  and  gives  the 
Administrator  the  authority  to  appoint  one  additional  member  with- 
out y<)te  and  provides  machinery  for  obtaining  statistics  and  the 
administration  of  this  Code. 

Article  V  sets  forth  the  fair  trade  practices  of  this  Supplementary 
Code  which  has  been  especially  designed  to  effect  fair  competition 
in  this  division  of  the  Industry. 

Article  VI  contains  the  mandatoi-y  i)r()visions  contained  in  Section 
10  (b)  of  the  Act  and  also  ])rovides  for  the  submission  of  proposed 
amendments  to  the  Code. 

Article  VII  provides  against  monopolies  and  monopolistic  prac- 
tices, and  recognizes  that  price  increases  be  limited  to  actual  addi- 
tional increases  in  seller's  costs. 

Article  VIII  states  the  effective  date  of  this  Supplementary  Code. 

40121—34 6  (729) 


730 


FINDINGS 


The  Assistant  Deputy  Administrator  in  his  final  report  to  me  on 
said  Supplementary  Code  having  found  as  herein  set  forth  and 
on  the  ba^is  of  all  the  proceedings  in  this  matter : 

I  find  that:  (a)  Said  Supplementary  Code  is  well  designed  to 
promote  the  policies  and  purposes  of  Title  I  of  the  National  In- 
dustrial Recovery  Act,  includng  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  pro- 
moting the  organization  of  industry  for  the  purpose  of  coo|>erative 
action  among  the  trade  groups,  by  inducing  and  maintaining  united 
action  of  labor  and  management  under  adequate  governmental  sanc- 
tions and  supervision,  by  eliminating  unfair  competitive  practices, 
by  promoting  the  fullest  possible  utilization  of  the  present  produc- 
tive capacity  of  intlustries,  by  avoiding  undue  restriction  of  pro- 
duction (except  as  may  be  temporarily  required),  by  increasing  the 
consumption  of  industrial  and  agricultural  products  through  in- 
creasing purchasing  power,  by  reducing  and  relieving  unemploy- 
ment, by  improving  standards  of  labor,  and  by  otherwise  rehabilitat- 
ing 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  Supplementary  Code  as  approved  complies  in  all  respects 
with  the  pertinent  provisions  of  said  Title  of  said  Act,  including 
without  limitati(m  Subsection  (a)  of  Section  3,  Subsection  (a)  of  Sec- 
tion 7,  and  Sul).secti(m  (b)  of  Section  10  thereof;  and  that  the  appli- 
cant association  is  an  industrial  association  truly  representative  of 
the  aforesaid  Industry :  and  that  said  association  imposes  no  inequi- 
table restrictions  on  admission  to  membership  thei'ein. 

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

(e)  The  Supplementary  Code  is  not  designed  to  and  will  not  elim- 
inate or  oppress  small  enterprises  and  will  not  operate  to  discrimi- 
nate 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 
Supplementary  Code. 

For  these  reasons,  therefore.  I  have  approved  this  Supplementarv 
Code. 

Respectfully, 

Hugh  S.  Johnson, 

Administrator. 
January  30,  1934. 


SUPPLEMENTARY  CODE  OF  FAIR  COMPETITION  FOR 
THE  HAND  CHAIN  MANUFAC  Tl  RING  INDUSTRY 

A   DIVISION    OF   THE  FABRICATED    METAL    PRODUCTS    MANUFACIURING    AND 
METAL    FINISHING    AND    METAL    COATING    INDUSTRY 

Article  I — Purposes 

To  effectuate  the  policy  of  Title  I  of  the  National  Industrial 
Recovery  Act.  the  following  provisions  are  established  as  a  Supple- 
juentarv  Code  of  Fair  Competition  for  The  Hand  Chain  Hoist 
Manufacturing  Industry,  pursuant  to  Article  VI  of  the  Basic  Code 
of  Fair  Competition  for  the  Fabricated  Metal  Products  Manufactur- 
ing and  Metal  Finishing  and  Metal  Coating  Industry,  approved  by 
the  President  of  the  United  States  on  the  second  day  of  November 
193H.  and  upon  approval  by  the  President  of  the  United  States  the 
provisions  of  this  Supplementary  Code  shall  be  the  Standard  of 
Fair  Competition  for  and  shall  be  binding  upon  every  member 
thereof. 

Article  II — Definitions 

The  term  "  The  Hand  Chain  Hoist  Manufacturing  Industry ". 
hereafter  referred  to  as  the  Industry,  means  and  includes  the  manu- 
facture or  purchase  of  component  parts  for  assembly  and  for  sale, 
of  all  types  of  hand  chain  hoists. 

The  term  "  Meml)er  of  the  Industry  ",  includes,  but  without  limi- 
tation, any  individual,  partnership,  association,  corporation,  or  other 
form  of  enterprise  engaged  in  the  Industry,  either  as  an  employer 
or  on  his  or  its  own  behalf. 

The  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  "  Basic  Code  "  as  used  herein,  is  defined  to  mean  the 
Basic  Code  of  Fair  Competition  for  the  Fabricated  Metal  Products 
Manufacturing  and  Metal  Finishing  and  Metal  Coating  Industry,  as 
api)roved  bv  the  President  of  the  United  States  on  the  second  day  of 
November  1933. 

The  term  "  Supplementary  Code  Authority  "  as  used  herein  means 
the  agency  which  shall  supervise  the  administration  of  this  Sup- 
plementary Code. 

The  term  "  Institute  ''  as  used  herein,  is  defined  to  mean  The  Hand 
Chain  Hoist  Institute,  Inc.,  or  its  successor. 

The  term  "  Federation  "  as  used  herein,  is  defined  to  mean  The 
Fabricated  Metal  Products  Federation,  or  its  successor. 

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732 
Article  III — Employment  Provisions 

This  Industry   is   a   division   of  the   Fabricated   Metal   Products 
Manufacturin<r  and  Metal  Finishinjr  and  Metal  Coating  Industry  and 
the  labor  provisions  of  its  Basic  Code  as  approved  by  the  President 
of  the  United  States  are  the  labor  provisions  of  this  Supplementary- 
Code, 

Article  IV — Organization  and  Administration 

Section  1.  The  Supplementary  Code  Authority  is  hereby  consti- 
tuted the  agency  to  administer  the  provisions  of  this  Supplementary 
Code,  and  shall  consist  of  the  five  (5)  members  of  the  Board  of 
Trustees  of  the  Institute  and  one  member  chosen  from  the  Industry 
by  the  vote  of  the  members  thereof.  The  Administrator  may  appoint 
one  representative  to  serve  without  vote  and  without  expense  to  the 
Industry  unless  the  Supplementary  Code  Authority  shall  agree  to 
pay  such  expenses  as  a  member  of  the  Supplementary  Code  Au- 
thority. The  President  of  the  Institute  is  hereby  constituted  the 
agent  to  collect  and  distribute  all  statistical  reports  of  the  Industry 
as  required  bv  the  Supplementary  Code  Authority.  With  a  view  to^ 
keeping  the  President  of  the  United  States  informed  as  to  the 
observance  or  nonobservance  of  this  Supplementally  Code,  said  agent 
shall  collect  such  statistics  as  called  for  by  the  President  and/or 
the  Administrator  and  send  them  in  such  form  as  the  President 
and/or  the  Administrator  may  require,  to  the  Federation  as  the 
agency  administering  said  Basic  Code. 

Sec.  2.  The  President  of  the  Institute,  as  such  agent,  shall  also, 
from  time  to  time,  furnish  to  the  Basic  Code  Authority,  designated 
in  said  Basic  Code,  such  information  as  may  be  required  to  be  fur- 
nished under  the  terms  of  said  Basic  Code. 

Sec.  3.  All  data  filed  in  accordance  with  the  provisions  of  this 
Sujjplementary  Code  shall  be  confidential  and  shall  not  be  revealed, 
except  in  composite  form,  to  anyone  other  than  an  authorized  gov- 
ernmental agency. 

Sec.  4.  Any  or  all  information  furnished  to  the  President  of  the 
Institute  by  any  member  of  the  Industry  shall  be  subject  to  checking 
for  purjjose  of  verifying  by  an  examination  of  the  pertinent  books 
and  accounts  and  records  of  such  member  by  any  disinterested  per- 
son or  persons,  nuitually  agreed  u])on  by  the  Supplementary  Code 
Authority  and  the  member  of  the  Industry  whose  books  and  ac- 
counts and  records  are  to  be  examined,  or  by  a  person  or  persons 
nominated  by  the  Supplementary  Code  Authority  and  approved  by 
the  Administrator.  The  cost  of  such  examination  shall  be  treated 
as  an  expense  of  administering  the  Code;  provided,  however,  that 
if  upon  such  examination  any  such  information  shall  be  shown  to 
have  been  incorrect  in  any  material  resi)ect,  such  costs  shall  be  paid 
by  the  member  of  the  Industi'y  which  furnished  such  information. 

Sec.  5.  To  further  effectuate  the  policies  of  the  Act  and  for  tlu 
administration  of  this  Supplementary  Code,  the  constituted  author- 
ities and  methods  of  governing  the  Industry  sliall  be  as  follows : 

a.  The  Suiii)lementary  Code  Authority  shall  have  general  j^iwer 
and  supervision  over  the  enforcement  of  the  provisions  of  this  Sup- 


733 

plementarv  Code  and  it  is  hereby  designated  as  the  agency  for  ad- 
ministei-ing.  supervising,  and  ])ronioting  the  observance  of  the  ])rovi- 
sions  of  this  Supplementary  Code,  and  shall  have  power  to  obtain 
from  all  members  of  the  Industry  such  reasonable  and  pertinent 
•data  as  may  be  necessary  for  the  administration  of  the  pi-ovisions 
of  this  Sup]:)lementary  Code.  The  request  for  reports  from  members 
■of  the  Industry  shall  not  be  made  in  any  manner  which  will  impose 
nneijual  obligations  upon  members  of  the  Industry. 

b.  The  Supplementary  Code  Authority  shall  have  power  to  investi- 
gate cm  its  own  initiative  or  on  complaint,  the  operation  of  the  Sup- 
plementary Code  and  any  alleged  violation  of  the  Supplementary 
Code  by  any  member  of  the  Industry;  to  make  findings  of  fact  and 
to  state  its  conclusions  as  to  whether  or  not  there  has  been  any  vio- 
lation of  any  provision  of  the  Supplementary  Code,  and  except  as 
hereinafter  provided,  to  take  such  steps  as  it  may  deem  necessary  or 
advisable,  within  the  provisions  of  the  Supplementary  Code,  subject 
to  rules  and  regulations  by  the  Administrator. 

c.  Xo  member  of  the  Supplementary  Code  xVuthority  shall  par- 
ticipate, as  a  member  of  such  Supplementary  Code  Authority,  in  any 
proceedings  in  which  he  is  interested  as  the  complainant  or  respond- 
ent, or  in  which  he  is  in  any  other  manner  directly  interested,  and 
in  the  event  of  any  such  disqualification,  the  remaining  members  of 
such  Supplementary  Code  Authority  shall  certify  such  disqualifica- 
tion, together  with  the  reasons  therefor  and  shall  promptly  desig- 
nate a  person  to  sit  as  a  special  member  of  such  Supplementary  Code 
Authority  for  the  purpose  of  such  proceedings. 

d.  The  Supplementary  Code  Authority  may  delegate  any  of  its 
•duties  to  such  person  or  persons,  connnittee,  or  committees,  as  it  may 
select ;  provided,  that  it  shall  not  delegate  any  of  its  duties  to  any 
person  Avho  is  subject  to  disqualification,  as  in  paragraph  "  c  "'  above 
provided:  and  provided  further,  that  such  delegation  shall  not  relieve 
the  Supplementary  Code  Authority  from  any  of  its  responsibilities 
under  this  Supplementary  Code. 

e.  The  Sup])lementary  Code  Authority  may.  subject  to  the  a])- 
proval  of  the  Administrator,  upon  finding,  by  a  three-fifths  vote,  that 
the  respondent  assenting  member  of  the  Industry  has  violated  this 
Supplementary  Code,  assess  all  costs  in  connection  with  such  investi- 
gation and  disposition  of  such  complaint  against  said  respondent 
assenting  member  of  the  Industry.  If  any  assenting  member  of  the 
Industry  makes  a  formal  complaint  to  the  Supplementary  Code 
Authority  Avhich  proves,  after  investigation  by  the  Supplementary 
Code  Authority  and  approval  b}'  the  Administrator,  to  be  without 
foundation  in  fact,  then  the  Su]:)plementarv  Code  Authority  may 
assess  against  the  assenting  member  of  the  Industry  bringing  such 
formal  complaint,  all  costs  in  connection  with  the  investigation  and 
disposition  of  such  complaint.  All  assessments  to  be  paid  into  the 
treasury  of  the  Institute  as  the  agency  of  the  Supplementary  Code 
Authority. 

f.  Each  member  of  the  Industry  subject  to  the  jurisdiction  of 
this  Supplementary  Code  shall  pay  to  the  Institute  as  the  agency  of 
the  Supplementary  Code  Authority  his  or  its  proportionate  share  of 
the  amount  necessary  to  pay  the  cost  of  assembling,  analyzing,  and 
publication  of  such  reports  and  data  and  of  the  maintenance  of  the 


734 

Supplementary  Code  Authority  in  connection  with  its  activities 
rehative  to  tlie  administration  of  this  Supplementary  Code;  said 
proportionate  share  to  be  based  upon  the  volume  of  business  and/or 
such  other  factors  as  the  Supplementary  Code  Authority  may 
prescribe. 

g.  A  meeting  of  the  Members  of  the  Industrj'  may  be  called  and 
held  at  any  time  by  order  of  the  Supplementary  Code  Authority  or 
members  of  the  Industry  having  the  riglit  to  cast  at  least  51%  of 
all  votes  which  might  be  cast  at  such  a  meeting.  At  least  five  days' 
notice  to  each  member  of  the  Industry  shall  be  given. 

h.  Each  member  of  the  Industry  who  assents  to  and  complies  with 
the  provisions  of  this  Supplementary  Code,  and  who  is  not  delin- 
quent in  the  payment  of  any  assessments  made  under  the  provisions- 
of  this  Supplementary  Code,  shall  be  entitled  to  cast  one  vote,  either 
in  person  or  by  proxy,  in  Avriting.  duly  executed  by  such  member  of 
the  Industry,  and  filed  with  the  Supplementary  Code  Authority 
within  a  reasonable  time  prior  to  the  time  set  for  the  meeting,  at  aU. 
meetings  of  the  membei's  of  the  Industry. 

Sec.  6.  The  Su})plementar3^  Code  Authority  shall  have  the  follow- 
ing further  poAvers  and  duties : 

a.  To  adopt  bylaAvs  and  rules  and  regulations  for  its  procedure  and 
for  the  administration  and  enforcement  of  the  Supplementary  Code.. 

b.  To  make  recommendations  to  the  Administrator  for  the  coor- 
dination of  the  administration  of  this  Supplementary  Code  with, 
such  other  Codes  as  maj'  be  related  to  the  Industry. 

c.  To  coo^Derate  with  the  Administrator  in  regulating  the  use  of 
any  N.R.A.  insignia  solely  bv  those  members  of  the  Industry  who 
have  assented  to,  and  are  complying  with,  this  Supplementary 
Code. 

d.  To  reconnnend  to  the  Administrator  further  fair  trade  practice 
provisions  to  govern  members  of  the  Industry  in  tlieir  relations  with 
each  other  or  with  other  industries  and  to  recommend  to  the  Admin- 
istrator measures  for  industrial  planning,  including  stabilization  of 
employment. 

e.  To  recommend  from  time  to  time  standards  of  shipment  terms. 

f.  To  recommend  from  time  to  time  standards  for  guaranty  on 
products. 

Sec.  7.  Nothing  contained  in  this  Supplementary  Code  shall  con- 
stitute the  members  of  the  Supplementary  Code  Authority  partnei-s 
for  any  purpose :  nor  shall  any  member  of  the  Supplementary  Code 
Authority  be  liable  in  any  manner  to  anyone  for  any  act  of  any 
other  member,  officer,  agent,  or  employee  of  the  Sup]5lementary  Code 
Authority.  Nor  shall  any  member  of  the  Supplementary  Code  Au- 
tllorit3^  exercising  reasonable  diligence  in  the  conduct  of  liis  duties 
hereunder,  be  liable  to  anyone  for  any  action  or  omission  to  act  under 
this  Supplementary  Code,  except  for  his  willful  misfeasance  or 
nonfeasance. 

Sec.  8.  It  the  Administrator  shall  determine  that  any  action  of 
the  Sujjplementary  Code  Authority  or  any  agency  thereof  is  unfair 
or  unjust  or  contrary  to  the  public  interest,  the  Administrator  may 
require  that  such  action  be  suspended  foi-  a  ])eriod  of  not  to  exceed 
thirty  (-^0)  days  to  afford  an  opportunit}^  for  investigation  of  such; 


/3o 


action  and  further  consideration  by  such  Supplementary  Code  Au- 
thority or  agency,  i)endin<r  final  action,  which  shall  be  taken  only 
upon  api)i'oval  by  the  Administrator. 

Article  V — Unfair  Trade  Practices 

For  all  purjioses  of  the  Supplementary  Code,  any  member  of  the 
Industry  who  shall,  directly  or  indirectly,  through  any  officer,  em- 
l)loyee.  agent,  or  representative,  violate  the  following  provisions 
of  this  Article,  shall  be  deemed  guilty  of  unfair  trade  practice  and  a 
violation  of  this  Suppleiuentary  Code. 

Section  1.  Each  member  of  the  Industrj'  shall  use  an  adequate  cost 
accounting  system  which  shall  conform  to  the  cost  accounting  system 
recommended  by  the  Supplementary  Code  Authority  and  approved 
by  the  Administrator  as  hereinafter  provided.  The  Supplementary 
Code  Authority  shall  recommend  for  use  in  the  Industry  a  uniform 
and  adequate  cost  accounting  system  which  shall  be  adaptable  to  the 
cost  accounting  procedure  and  to  the  business  of  the  Industry.  Such 
plan  shall  specify  the  factors  which  shall  be  included  in  determining 
the  costs  of  each  member  of  the  Industry.  Upon  approval  by  the 
Administrator  of  such  a  system  of  cost  accounting  for  the  Industry, 
complete  advice  concerning  it  shall  be  distributed  by  the  Supplement- 
ary Code  Authority  to  all  members  of  the  Industry.  Thereafter 
each  member  of  the  Industry  shall  file  with  the  agent  designated 
under  Article  IV,  Section  1,  of  this  supplementary  Code  his  costs 
for  typical  items  of  the  products  of  the  Industry  offered  for  sale  by 
him.  Thereafter  no  member  of  the  Industry  shall  initiate  a  selling 
jDrice  below  his  own  cost,  or  sell  the  product  of  the  Industry  at  such 
price  or  upon  such  terms  or  conditions  of  sale  as  will  result  in  the  pur- 
chaser's paying  for  such  product  less  than  the  cost  of  that  member 
of  the  Industiv  who  has  filed  the  lowest  cost;  provided,  however, 
that  any  member  of  the  Industry  may  sell  below  his  own  costs  to 
meet  existing  competition,  when  such  prices  have  been  filed  in  ac- 
cordance with  Section  2  of  this  Article;  and  provided,  further,  that 
the  Supplementary  Code  Authority  may  approve,  subject  to  dis- 
approval by  the  Administrator,  the  sale  of  surplus  stocks  below  such 
costs  where  necessary  to  relieve  financial  emergencies.  A  detailed 
record  of  such  surplus  stocks  shall  be  filed  with  and  checked  by  such 
impartial  agency  as  the  Supplementary  Code  Authority  may  desig- 
nate at  the  time  of  applicaticm  for-  such  approval. 

Sec.  2.  Each  member  of  the  Industry  shall  publish  and  file  with 
the  Supplementary  Code  Authority  within  ten  da3^s  after  the  effec- 
tive date  of  tlie  Supplementary  Code,  price  lists  individually  pre- 
pared by  him  of  all  i)rodncts  otfei-ed  for  sale  or  sold  by  him  and  all 
terms  and  conditions  of  sale  relating  thereto.  Such  price  lists  shall 
state  for  each  grade  and  kind  of  each  product  sold  or  offered  for 
sale,  one  price  with  appropriate  discounts  therefrom,  if  any  allowed, 
for  sales  to  classified  types  of  purchasers.  Such  price  lists  and  terms 
and  conditions  of  sale  so  filed  with  the  Supplemental-}^  Code  Au- 
thority shall  be  open  to  inspection  at  all  reasonable  times  by  any 
interested  party.  Revised  price  lists  or  revised  terms  and  conditions 
of  sale,  if  made,  shall  be  filed  from  time  to  time  thereafter  Avith  the 
Supplementary  Code  Authority  by  any  Member  of  the  Industry; 


736 

provided.  howeA-er.  that  such  revisions  shall  be  filed  with  the  Supple- 
mentary Code  Authority  ten  days  in  advance  of  the  effective  date 
thereof;  and.  provided  further,  that  any  other  member  of  the  In- 
dustry may  file  revisions  of  his  price  lists  or  terms  and  conditions  of 
sale  to  meet  the  revisions  first  filed  which  may  become  effective  on 
the  date  when  the  revised  price  lists  or  reviseil  terms  and  condi- 
tions of  sale  fir>t  filed  shall  become  effective.  At  the  time  of  filiuii 
price  lists  or  discount  sheets,  in  accordance  with  this  paragraph, 
each  Member  of  the  Industry  shall  furnish  the  Supplementary  Code 
Authority,  for  distribution,  such  number  of  copies  of  his  price  lists 
and  or  discount  sheets  and  any  revisions  thereof,  as  the  Supplemen- 
tary Code  Authority  may  prescribe.^ 

Sec.  3.  Xo  member  of  the  Industry  shall  sell  or  offer  for  sale  any 
product  of  the  Industry  at  prices  other  than  tlie  ]irices  noted  in 
its  price  lists.  (>r  terms  and  conditions  of  sale  other  than  the  teims 
and  conditions  of  sale  previously  filed  by  such  member  with 
the  Supplementary  Code  Authority  in  accordance  witli  the  provisions 
of  Section  '2  of  this  Article  and  in  effect  at  the  time  of  such  sale. 

Sec.  4.  The  following  paragraphs  ciescribe  and  shall  constitute 
unfair  methods  of  competition : 

a.  (1)  To  publish  advertising  (whether  printed,  radio,  display,  or 
of  any  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.  trademark,  grade,  quality, 
quantity,  origin,  size,  substance,  character,  nature,  finish,  material, 
content,  or  preparation)  or  credit  terms,  values,  policies,  services.  c>r 
the  nature  or  form  of  the  business  conducted. 

(2)  To  make  disparaging  statements  respecting  the  business  meth- 
ods, practices,  or  products  of  another  member  of  the  Industry. 

b.  To  knowingly  withhold  from  or  insert  in  any  quotation  or  in- 
voice any  statement  that  makes  it  inaccurate  in  any  material  par- 
ticular, 

c.  To  brand  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. 

d.  To  publish  or  circulate  unjustified  or  unwarranted  threats  of 
legal  proceedings  which  tend  to  or  have  the  effect  of  harrassing  com- 
petitors or  intimidating  their  customers.  Failure  to  prosecute  in  due 
course  shall  be  evidence  that  any  such  threat  is  unwarranted  or  un- 
justified. 

e.  To  allow  or  make  payment  or  allowance  of  a  rebate,  refund, 
commission,  credit,  unearned  discount,  excess  allowance,  or  allowance 
for  customer  advertising,  catalogues,  or  illegitimate  ]iremiums. 
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  customei-s  of  the  same  class. 
for  the  purpose  of  influencing  a  sale. 

f .  To  ship  goods  on  consignment  except  under  circumstances  to  be 
defined  by  the  Supplementary  Code  Authority,  subject  to  the  ap- 


*  See  paragraph  2  of  order  approving  this  Code. 


737 

proval  of  the  Administrator,  where  peculiar  circumstances  of  the 
Industry  require  the  practice. 

<r.  No  member  of  the  Industry  shall  attempt  to  induce  a  breach  of 
an  existinff  contract  between  a  competitor  and  his  employee,  (other 
than  employment  contracts),  or  customer  or  source  of  supply;  nor 
-liall  any  member  interfere  with  or  obstruct  the  performance  of  such 
'ontiactual  duties  or  services. 

h.  To  offer  or  extend  a  guarantee  against  decline  or  advance  in  the 
selling  price  of  products. 

i.  To  agree  to  liquidate,  purchase,  or  accept  shipment  of  a  com- 
petitor's product  flora  a  customer,  in  order  to  sell  member's  own 
}jroduct. 

j.  To  authorize  the  return  of  j>roduct  for  a  credit,  where  known  to 
be  obsolete,  or  where  sales  record  of  preceding  year  indicates  lack  of 
marketability. 

k.  To  post-date  an  invoice. 

I.  To  extend  protection  against  price  advance  or  decline  of  prod- 
ucts through  the  signing  of  requirement  contracts. 

m.  To  make  an  allowance  for  all  or  any  portion  of  transporta- 
tion costs,  excejjt  wliere  transijortation  charges  are  figured  as  a  part 
of  the  original  co.sts  and  are  included  in  the  selling  price. 

n.  To  enter  into  any  agreement  to  assume  responsibility  for  conse- 
quential damages  and  other  items  of  expense  which  normally  cannot 
be  anticipated  in  original  cost.-:;  (u-  selling  prices. 

Sec.  5.  Eu-poit  Trade. — Xo  provision  of  this  supi^lementary  Code 
relating  to  prices  or  terms  of  selling,  shipping,  or  marketing,  shall 
apply  to  export  trade  or  sales  or  shipments  for  export  trade.  Un- 
le.-s  and  to  the  extent  that  the  Supplementary  Code  Authority  shall 
otherwise  determine,  the  sale  of  any  product  by  any  member  of 
the  Industiy  for  direct  shipment  to  Alaska,  the  Philippines.  Hawaii, 
or  Puerto  Rico  or  other  insular  possessions  of  the  United  States 
of  America  shall  not  l)e  deemed  export  trade. 

Article  VI — Modification 

Section    1.  This    Supplementary    Code    and    all    the    provisions 

I     thereof  are  expressh'  made  subject  to  the  right  of  the  President,  in 

accordance  with  the  provisi<ms  of  sub-section  (b)  of  Section  10  of  the 

Act.  from  time  to  time  to  cancel  or  modify  any  order,  approval, 

license,  rule,  or  regulation  issued  under  the  said  Act. 

Sec.  2.  By  presenting  this  Supplementary  Code  the  members  of 
the  Industry  do  not  thereby  consent  to  any  modification  thereof,  and 
they  reserve  the  right  to  object  to  any  such  modifications  without 
being  given  an  opportunity  to  be  heard. 

Sec.  3.  This  Supplementary  Code,  except  as  to  provisions  required 
liy  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  VII — General  Pro\isions 

Section  1.  Xo  provision  of  this  Supplementary  Code  shall  be 
ajiplied  so  as  to  i^ermit  monopolies  or  monopolistic  practices,  or  to 
eliminate,  oppress,  or  discriminate  against  small  enterprises. 


738 

Sec.  2.  Whereas  the  jxilicY  of  the  Act  to  increase  real  purchasing 
power  will  be  made  more  difficult  of  consummation  if  prices  of  goods 
and  service.-?  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.  Ix*  limited  to  actual  additional  increases  in  the  seller's 
costs. 

Sec.  3.  This  Supplementary  Code  shall  not  affect  patent  rights. 

Article  VIII — Dukatiox  <.>f  Supplementary  Code 

This  Supplementary  Code  shall  become  effective  at  1'2 :  01  a.m. 
o'clock  on  the  tenth  day  after  it  is  approved  by  the  President  and 
shall  continue  in  effect,  until  June  16.  1935.  or  the  earliest  date 
prior  thereto  on  which  the  President  shall,  by  proclamation,  or 
the  Congress  shall,  by  joint  resolution,  declare  that  the  emergency 
recognized  by  Section  1  of  the  National  Industrial  Recovery  Act 
has  ended. 

Approved  Code  No.  S4 — .Supplement  N<j.  2. 
Registry  No.  1107-02. 


Approved  Code  No.  84,  Supplement  No.  3 
SUPPLEMENTARY  CODE  OF  FAIR  C0:MPETITI0N 

FOR   THE 

CHAIN  iMANUFACTURING  INDUSTRY 

As  Approved  on  January  31.  1934 


ORDER 


Ari'KOVIXG     SuPPLE^IENTARY     C  C'DE     DF     FaIR     C\iM PETITION      FOR     THE 

Chain  MAxuFAtTURiM;  Industry 

A    DIVISION    OF   THE    FABRICATED    METAI.    PKODHTS    MAM  FACTUKINi;    AND 
METAL    FINISHING    AND    METAL    COATING    INDl  STKY 

An  application  lia\ing  been  cliily  made  pur>nant  to  and  in  fnll 
coni}iliaiKe  with  the  provisions  oi  Title  I  of  the  National  Indnstrial 
Recovery  Act,  a|)proved  Jnne  10.  1933.  and  in  accordance  with  the 
provisions  of  Section  1  of  Article  VI  of  the  Basic  Code  for  the 
Fabricated  Metal  Prodncts  Mannfactnrinir  and  Metal  Finishinir  and 
Metal  Coatin>r  Imlustry.  approved  November  2.  1933.  for  apjiroval 
of  a  Snpplementarv  Code  of  Fair  Competition  for  the  Chain  ^lanu- 
facturinii  Industrv:  and  hearinjrs  havinyf  been  dulv  held  thereon: 
and  the  annexed  report  on  said  Snpiilenientarv  Code,  containing 
findiiiiis  with  respect  thereto,  having  l)een  made  and  directed  to  the 
President : 

NOAV,  ITIEREFORE.  on  behalf  of  the  President  of  the  United 
States,  1.  Hngh  S.  Johnson,  Administrator  for  Indu>trial  Recovery, 
pnrsuant  to  antlujrity  vestetl  in  me  by  Executive  Orders  of  tlie 
Pre>i<lent.  including  Executive  Order  Xo.  ti")4-^A.  dated  December 
30,  lt»33,  and  otherwise;  do  hereby  incorporate  by  reference  said 
annexed  report  and  do  find  that  said  Supplementary  Code  complies 
in  all  re-«pects  with  the  pertinent  provisions  and  will  jn-omote  the 
policy  and  purjxtses  of  said  Title  of  >aid  Act;  antl  do  hereby  order 
that  said  Sui^plementary  Code  of  Fair  Competition  be  and  it  is 
hereby  approved;  provided,  however,  that  the  pi'ovisions  of  Article 
V.  Section  2,  insofar  as  they  preseril)e  a  waiting  period  between  the 
tiling  with  the  Code  Authority  (i.e..  actual  I'eceipt  by  the  Code  Au- 
thority) and  the  effective  date  of  revised  price  lists  or  revised  terms 


740 

and  conditions  of  sale  be  and  they  are  hereby  stayed  for  a  period 
of  sixty  days  or  pending  the  completion  of  a  study  now  being  con- 
ducted by  the  National  Recovery  Administration,  and  at  the  end  of 
such  period  said  provisions  shall  become  effective  unless  I,  by  my 
further  Order,  otherwise  determine. 

Hugh  S.  Johnson, 
Admhustrator  for  Induct j-^'rd  Recover i/.. 

ApproA'al  recommended : 
W.  A.  Harriman, 

D'/ vision  Admimstrator. 

Washington.  D.C. 

January  31. 1931^. 


REPORT  TO  THE  PRESIDENT 

The  President, 

The  White  House. 

Sir:  This  is  a  report  on  the  Supplementary  Code  of  Fair  Com- 
petition for  the  Chain  Maniifacturino-  Industry,  a  division  of  the 
Fabricated  Metal  Products  Manufacturing-  and  Metal  Finishing  and 
Metal  Coating  Industry,  and  on  the  hearing  conducted  thereon  in 
Washington,  D.C.,  December  18,  1933.  in  accordance  with  the  provi- 
sions of  Title  I  of  the  National  Industrial  Recovery  Act. 

GENERAL    STATEMENT 

The  Chain  Manufacturing  Industry,  being  truly  representative  of 
this  division  of  the  Fabricated  Metal  Products  Manufacturing  and 
Metal  Finishing  and  Metal  Coating  Industry,  has  elected  to  avail  itself 
of  the  option  of  submitting  a  Supplementary  Code  of  Fair  Practice, 
as  provided  for  in  Section  1  of  Article  VI  of  the  Basic  Code,  for 
the  Fabricated  Metal  Products  Manufacturing  and  Metal  Finishing 
and  Metal  Coating  Industry  approved  by  vou  on  the  second  day  of 
November  1933. 

RESUME    OF   THE   CODE 

Article  I  states  the  purpose  of  the  Supplementary  Code. 

Article  II  accurately  defines  specific  terms  employed  in  the  Sup- 
plementary Code. 

Article  III.  This  Industry  is  a  division  of  the  Fabricated  Metal 
Products  Manufacturing  and  Metal  Finishing  and  Metal  Coating 
Industry  and  the  labor  provisions  of  its  Basic  Code,  as  approved 
November  2,  1933,  are  the  labor  provisions  of  this  Supplementary 
€ode. 

Article  IV  establishes  a  Supplementary  Code  Authority  consist- 
ing of  the  seven  (7)  members  of  the  Board  of  Trustees  of  the  Chain 
Institute.  Inc.,  or  its  successor,  and  one  (1)  member  chosen  from 
the  Industry  by  the  vote  of  the  members  thereof,  and  gives  the  Ad- 
ministrator the  authority  to  appoint  one  (1)  additional  member 
■without  vote  and  provides  machinery  for  obtaining  statistics  and 
the  administration  of  this  Supplementary  Code. 

Article  V  sets  forth  the  fair  trade  practices  of  this  Supplementary 
Code  which  has  been  especially  designed  to  effect  fair  competition 
in  this  division  of  the  Industry. 

Article  VI  contains  the  mandatory  provisions  contained  in  Sec- 
tion 10  (b)  of  the  Act  and  also  provides  for  the  submission  of  pro- 
posed amendments  to  the  Supplementar}'  Code. 

Article  VII  provides  against  monopolies  and  monopolistic  prac- 
tices, and  recognizes  that  price  increases  be  limited  to  actual  addi- 
tional increases  in  the  seller's  costs. 

Article  VIII  states  the  effective  date  of  this  Supplementary  Code. 

(741) 


742 

FINDINGS 

The  Assistant  Deputy  Administrator  in  his  tinal  report  to  me  on 
said  Supplementary  Code  having  found  as  herein  set  forth  and  on 
the  basis  of  all  the  proceedings  in  this  matter : 

I  find  that— 

(a)  Said  Supplementary  Code  is  well  designed  to  promote  tlie 
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  organ- 
ization 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- 
vision, by  eliminating  unfair  competitive  practices,  l)}^  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  lal)or,  and  by  otherwise  rehabilitating  industry. 

(b)  Said   Industry  normally  employs  not  moi'e  than  50.000  em-- 
ployees;  and  is  not  classified  by  me  as  a  nuijor  industry. 

(c)  The  Supplementary  Code  as  approved  complies  in  all  respects 
with  the  i^ertinent  provisions  of  said  Title  of  said  Act,  including 
without  limitation  Sulisection  (a)  of  Section  3,  Subsection  (a)  of 
Section  7.  ami  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  Supplementary  Code  is  not  designed  to  and  w^ill  not  per- 
mit monopolies  or  monopolistic  practices. 

(e)  The  Supplementary  Code  is  not  designed  to  and  will  not  elim- 
inate or  oppress  small  enterprises  and  will  not  operate  to  discrimi- 
nate 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 
Supplementary  Code. 

For  these  reasons,  therefore.  I  have  approved  this  Supplementary 
Code. 

Respectfully, 

Hugh  S.  Johnson. 

Administrator. 
January  31,  1934. 


SUPPLEMENTARY  CODE   OF  FAIR  COMPETITION  FOR 
THE   CHAIN   MANUFACTURING   INDUSTRY 

A    DIVISION    OF   THE   FABRICATED    METAL    PRODUCTS    MANUFACTURING    AND 
METAL  FINISHING  AND  METAL  COATING  INDUSTRY 

Article   I — PuRirsES 

To  effectuate  the  policy  of  Title  I  of  the  National  Iiuhistrial  Recov- 
ery Act.  the  followin<>:  provisions  are  established  as  a  Supplementary 
Code  of  Fair  Competition  for  The  Chain  Mannfactiirin<r  Industry, 
pursuant  to  Article  YI  of  the  Basic  Code  of  Fair  Competition  for  the 
Fabricated  Metal  Products  Manufacturing  and  Metal  Finishing  and 
Metal  Coating  Industry,  approved  by  the  President  of  the  United 
States  on  the  second  da^^  of  November  1933,  and  upon  approval  by 
the  President  of  the  United  States  the  provisions  of  this  Supple- 
mental Code  shall  be  the  Standard  of  Fair  Competition  for  and  shall 
be  binding  upon  every  member  thereof. 

Article  II — Definitions 

The  term  '*  The  Chain  ^lanufacturing  Industry  '\  hereafter  re- 
ferred to  as  the  Industry,  means  and  includes  the  manufacture  or 
purchase  of  comi^onent  parts  for  assembly  and  for  sale,  of  all  typts 
of  chains  of  iron  and  steel,  both  Welded  and  Weldless,  except  Fabri- 
cated Transmission  Chain  and  all  forms  of  Cast  Chain. 

The  term  '•  Member  of  the  Industry  **,  includes,  but  without  lim- 
itation, any  individual,  partnership,  association,  corporation,  or  other 
form  of  enterprise  engaged  in  the  Industry,  either  as  an  employer 
or  on  his  or  its  own  behalf. 

The  terms  '•  President  ",  "Act  ",  and  "Administrator  "  as  used 
lierein  shall  mean  iesi)ectively  the  President  of  the  United  States, 
the  National  Industrial  Recovery  Act,  and  the  Administrator,  of 
Title  I  of  said  Act. 

The  term  "  Basic  Code '"  as  used  herein,  is  defined  to  mean  the 
Basic  Code  of  Fair  Competition  for  the  Fabricated  Metal  Products 
Manufacturing  and  Metal  Finishing  and  Metal  Coating  Industry, 
as  a})i)roved  by  the  P.'-esident  of  the  tJnited  States  on  the  second  day 
of  November  1933. 

The  term  "  Supplementary  Code  Authority  "  as  used  herein  means 
the  agency  which  shall  supervise  the  administration  of  this  Supple- 
mentary Code. 

The  term  '"  Institute  "'  as  used  herein,  is  defined  to  mean  The  Chain 
Institute.  Inc.,  or  its  successor. 

The  term  *•  Federation  "  as  used  herein,  is  defined  to  mean  The 
Fabricated  Metal  Products  Federation,  or  its  successor. 

(74.S) 


744 
Article  III — Employment  Provisions 

This  Industry  is  a  division  of  the  Fabricated  Metal  Products  Man- 
iifacturino-  and  Metal  Finishing  and  Metal  Coating  Industry  and  the 
labor  provisions  of  its  Basic  Code  as  approved  by  the  President  of 
the  United  States  are  the  labor  provisions  of  this  Supplementary 
Code. 

Article  IV — Organization  and  Administration 

Section  1.  The  Supplementary  Code  Authority  is  hereby  con- 
stituted the  agency  to  administer  the  provisions  of  this  Supplemen- 
tary Code,  and  shall  consist  of  the  seven  (7)  members  of  the  Board 
of  Trustees  of  the  Institute  and  one  member  chosen  from  the  Indus- 
try by  the  vote  of  the  members  thereof.  The  Administrator  may 
appoint  one  representative  to  serve  without  vote  and  without  ex- 
pense to  the  Industry  unless  the  Supplementary  Code  Authority  shall 
agree  to  pay  such  expenses  as  a  member  of  the  Supplementary  Code 
Authority.  The  President  of  the  Institute  is  hereby  constituted  the 
agent  to  collect  and  distribute  all  statistical  reports  of  the  Industry 
as  required  by  the  Supplementary  Code  Authority.  With  a  view  to 
keeping  the  President  of  the  United  States  informed  as  to  the  ob- 
servance or  nonobservance  of  this  Supplementary  Code,  said  agent 
shall  collect  such  statistics  as  called  for  by  the  President  and/or  the 
Administrator  and  send  them  in  such  form  as  the  President  and/or 
the  Administrator  may  require,  to  the  Federation  as  the  agency 
administering  said  Basic  Code. 

Sec.  2.  The  President  of  the  Institute,  as  such  agent,  shall  also, 
from  time  to  time,  furnish  to  the  Basic  Code  Authority,  designated  in 
said  Basic  Code,  such  information  as  may  be  required  to  be  furnished 
under  the  terms  of  said  Basic  Code. 

Sec.  3.  All  data  filed  in  accordance  with  the  provisions  of  this  Sup- , 
plementary  Code  shall  be  confidential  and  shall  not  be  revealed,  ex- 
cept in  composite  form  to  anyone  other  than  an  authorized  govern- 
mental agency. 

Sec.  4.  Any  or  all  information  furnished  to  the  President  of  the 
Institute  by  any  member  of  the  Industry  shall  be  subject  to  checking 
for  the  purpose  of  verifying  by  an  examination  of  the  pertinent 
books  and  accounts  and  records  of  such  member  by  any  disinterested 
person  or  persons,  mutually  agreed  upon  by  the  Supplementary  Code 
Authority  and  the  member  of  the  Industry  whose  books  and  accounts 
and  records  are  to  be  examined,  or  by  a  person  or  persons  nominated 
by  the  Supplementary  Code  Authority  and  approved  by  the  Admin- 
istrator. The  cost  of  such  examination  shall  be  treated  as  an  expense 
of  administering  the  Code;  provided,  however,  that  if  upon  such  ex- 
amination any  such  information  shall  be  shown  to  have  been  incor- 
rect in  any  material  respect,  such  costs  shall  be  paid  by  the  member 
of  the  Industry  which  furnished  such  information. 

Sec.  5.  To  further  effectuate  the  policies  of  the  Act  and  for  the 
administration  of  this  Supplementary  Code,  the  constituted  authori- 
ties and  methods  of  governing  the  Industry  shall  be  as  follows  : 

a.  The  Supplementary  Code  Authority  shall  have  general  power 
and  supervision  over  the  enforcement  of  the  provisions  of  this  Sup- 
plementary Code  and  it  is  hereby  designated  as  the  agency  for  admin- 


745 

istering,  supervising,  and  promoting  the  observance  of  the  provisions 
of  this  Supplementary  Code,  and  shall  have  power  to  obtain  from  all 
members  of  the  Industry  such  reasonable  and  pertinent  data  as  may 
be  necessary  for  the  administration  of  the  provisions  of  this  Sup- 
plementary Code.  The  request  for  reports  from  members  of  the 
Industry  shall  not  be  made  in  any  manner  which  will  impose  unequal 
obligations  upon  members  of  the  Industry. 

b.  The  Supplementary  Code  Authority  shall  have  power  to  in- 
vestigate on  its  own  initiative  or  on  complaint,  the  operation  of  the 
SuiDplementary  Code  and  any  alleged  violation  of  the  Supplementary 
Code  by  any  member  of  the  Industry ;  to  make  findings  of  fact  and 
to  state  its  conclusions  as  to  whether  or  not  there  has  been  any  viola- 
tion of  any  provision  of  the  Supplementary  Code,  and  except  as 
hereinafter  provided,  to  take  such  steps  as  it  may  deem  necessary  or 
advisable,  within  the  provisions  of  the  Supplementary  Code,  subject 
to  rules  and  regulations  by  the  Administrator. 

c.  No  member  of  the  Supplementary  Code  Authority  shall  par- 
ticipate, as  a  member  of  such  Supplementary  Code  Authority,  in 
any  proceedings  in  which  he  is  interested  as  the  complainant  or 
respondent,  or  in  which  he  is  in  any  other  manner  directly  interested, 
and  in  the  event  of  any  such  disqualification,  the  remaining  members 
of  such  Supplementary  Code  Authority  shall  certify  such  disqualifi- 
cation, together  with  the  reasons  therefor  and  shall  promptly  desig- 
nate a  person  to  sit  as  a  special  member  of  such  Supplementary  Code 
Authority  for  the  purpose  of  such  proceedings. 

d.  The  Supplementary  Code  Authority  may  delegate  any  of  its 
duties  to  such  person  or  persons,  committee  or  committees,  as  it  may 
select;  provided,  that  it  shall  not  delegate  any  of  its  duties  to  any 
person  who  is  subject  to  disqualification,  as  in  paragraph  "  c  "  above 
provided;  and  provided  further,  that  such  delegation  shall  not  re- 
lieve the  Supj)lementary  Code  Authority  from  any  of  its  responsi- 
bilities under  this  Supplementary  Code. 

e.  The  Supplementary  Code  Authority  may,  subject  to  the  ap- 
proval of  the  Administrator,  upon  finding,  by  a  three  fifths  vote, 
that  the  respondent  assenting  member  of  the  Industry  has  violated 
this  Supplementary  Code,  assess  all  costs  in  connection  with  such 
investigation  and  disposition  of  such  complaint  against  said  re- 
spondent assenting  member  of  the  Industry.  If  any  assenting  mem- 
ber of  the  Industry  makes  a  formal  complaint  to  the  Supplementary 
Code  Authority  which  proves,  after  investigation  by  the  Supplemen- 
tary Code  Authority  and  approval  by  the  Administrator,  to  be 
without  foundation  in  fact,  then  the  Supplementary  Code  Authority 
may  assess  against  the  assenting  member  of  the  Industry  bringing 
such  formal  complaint,  all  costs  in  connection  with  the  investigation 
and  disposition  of  such  complaint.  All  assessments  to  be  paid  into 
the  treasur}^  of  the  Institute  as  the  agency  of  the  Supplementary 
Code  Authority. 

f.  Each  member  of  the  Industry  subject  to  the  jurisdiction  of  this 
Supplementary  Code  shall  pay  to  the  Institute  as  the  agency  of 
the  Supplementary  Code  Authority  his  or  its  proportionate  share 
of  the  amount  necessary  to  pay  the  cost  of  assembling,  analyzing,  and 
publication  of  such  reports  and  data  and  of  the  maintenance  of  the 
Supplementar}^  Code  Authority  in  connection  with  its  activities  rela- 

40121—34 7 


746 

tive  to  the  administration  of  this  Supplementary  Code;  said  pro- 
portionate share  to  be  based  upon  the  vohime  of  business  and/or 
such  other  factors  as  the  Supplementary  Code  Authority  may 
prescribe. 

g.  A  meeting  of  the  Members  of  the  Industry  may  be  called  and 
held  at  any  time  by  order  of  the  Supplementary  Code  Authority 
or  members  of  the  Industry  having  the  right  to  cast  at  least  51% 
of  all  votes  which  might  be  cast  at  such  a  meeting.  At  least  five 
da3^s'  notice  to  each  member  of  the  Industry  shall  be  given. 

h.  Each  member  of  the  Industry  Avho  assents  to  and  complies  with 
the  provisions  of  this  Supplementary  Code,  and  who  is  not  delin- 
quent in  the  payment  of  any  assessments  made  under  the  provisions 
of  this  Supplementary  Code,  shall  be  entitled  to  cast  one  vote,  either 
in  person  or  by  proxy,  in  writing,  duly  executed  by  such  member  of 
the  industry,  and  filed  with  the  Supplementary  Code  Authority 
within  a  reasonable  time  prior  to  the  time  set  for  the  meeting,  at 
all  meetings  of  the  members  of  the  Industry. 

Sec.  6.  The  Supplementary  Code  Authority  shall  have  the  fol- 
lowing further  powers  and  duties : 

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

b.  To  make  recommendations  to  the  Administrator  for  the  co- 
ordination of  the  administration  of  this  Supplementary  Code  with 
such  other  Codes  as  may  be  related  to  the  Industry. 

c.  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  Supplementary  Code. 

d.  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. 

e.  To  recommend  from  time  to  time  standards  of  shipment  terms. 

f.  To  recommend  from  time  to  time  standards  for  guaranty  on 
products. 

Sec.  7.  Nothing  contained  in  this  Supplementary  Code  shall  con- 
stitute the  members  of  the  Supplementary  Code  Authority  partners 
for  any  purpose;  nor  shall  any  member  of  the  Supplementary  Code 
Authority  be  liable  in  any  manner  to  anyone  for  any  act  of  any 
other  member,  officer,  agent,  or  employee  of  the  Supplementary  Code 
Authority.  Nor  shall  any  member  of  the  Supplementary  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  Supplementary  Code,  except  for  his  wilful  misfeasance  or 
nonfeasance. 

Sec.  8.  If  the  Administrator  shall  determine  that  any  action  of 
the  Supplementary  Code  Authority  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  such 
action  and  further  consideration  by  such  Supplementary  Code  Au- 


747 

thority  or  agency,  pending  final  action,  which  shall  be  taken  only 
upon  approval  by  the  Administrator. 

Article  V — Unfair  Trade  Practices 

For  all  purposes  of  the  Supplementary  Code,  any  member  of  the 
Industry  who  shall,  directly  or  indirectly,  through  au}^  officer,  em- 
ployee, agent,  or  representative,  violate  the  following  provisions  of 
this  Article,  shall  be  deemed  guilty  of  unfair  trade  practice  and  a 
violation  of  this  Supplementary  Code. 

Section  1.  Each  member  of  the  Industrj^  shall  use  an  adequate 
cost  accounting  sj^stem  which  shall  conform  to  the  cost  accounting 
system  recommended  by  the  Supplementary  Code  Authority  and 
approved  by  the  Administrator  as  hereinafter  provided.  The  Sup- 
IDlementary  Code  Authority  shall  recommend  for  use  in  the  Industry 
a  uniform  and  adequte  cost  accounting  system  which  shall  be  adapta- 
ble to  the  cost  accounting  procedure  and  to  the  business  of  the  In- 
dustry. Such  plan  shall  specify  the  factors  which  shall  be  included 
in  determining  the  costs  of  each  member  of  the  Industry.  Upon 
approval  by  the  Administrator  of  such  a  system  of  cost  accounting 
for  the  Industry,  complete  advice  concerning  it  shall  be  distributed 
by  the  Supplementary  Code  Authority  to  all  members  of  the  Indus- 
try. Thereafter  each  member  of  the  Industry  shall  file  with  the 
agent  designated  under  Article  IV,  Section  I,  of  this  Supplementary 
Code  his  costs  for  typical  items  of  the  products  of  the  Industry 
offered  for  sale  by  him.  Thereafter  no  member  of  the  Industry  shall 
initiate  a  selling  price  below  his  own  cost,  or  sell  the  product  of  the 
Industry  at  such  price  or  upon  such  terms  or  conditions  of  sale  as 
will  result  in  the  purchaser's  paying  for  such  product  less  than  the 
cost  of  that  member  of  the  Industry  who  has  filed  the  lowest  cost; 
provided,  however,  that  any  member  of  the  Industry  may  sell  below 
his  own  costs  to  meet  existing  competition,  when  such  prices  have 
been  filed  in  accordance  with  Section  2  of  this  Article ;  and  provided, 
further,  that  the  Supplementary  Code  Authority  may  approve, 
subject  to  disapproval  by  the  Administrator,  the  sale  of  surplus 
stocks  below  such  costs  where  necessary  to  relieve  financial  emer- 
gencies. A  detailed  record  of  such  surplus  stocks  shall  be  filed  with 
and  checked  by  such  impartial  agency  as  the  Supplementary  Code 
Authority  ma}^  designate  at  the  time  of  application  for  such  approval. 

Sec.  2.  Each  member  of  the  Industry  shall  publish  and  file  with 
the  Supplementary  Code  Authority  within  ten  da5's  after  the  effec- 
tive date  of  the  Supplementary  Code,  price  lists  individually  pre- 
pared by  him  of  all  products  offered  for  sale  or  sold  by  him  and  all 
terms  and  conditions  of  sale  relating  thereto.  Such  price  lists  shall 
state  for  each  grade  and  kind  of  each  product  sold  or  offered  for  sale, 
one  price  with  appropriate  discounts  therefrom,  if  any  allowed,  for 
sales  of  classified  types  of  purchasers.  Such  price  lists  and  terms 
and  conditions  of  sale  so  filed  with  the  Supplementary  Code  Author- 
ity shall  be  open  to  inspection  at  all  reasonable  times  by  any  inter- 
ested party.  Revised  price  lists  or  revised  terms  and  conditions  of 
sale,  if  made,  shall  be  filed  from  time  to  time  thereafter  with  the 
Sup]ilementarv  Code  Authority  by  any  Member  of  the  Industry: 
provided,  however,  that  such  revisions  shall  be  filed  with  the  Sup- 


748 

plementary  Code  Authority  ten  days  in  advance  of  the  effective 
date  thereof ;  and,  provided  further,  that  any  other  member  of  the 
Industry  may  file  revisions  of  liis  price  lists  or  terms  and  conditions 
of  sale  to  meet  the  revisions  first  filed  which  may  become  effective  on 
the  date  when  the  revised  price  lists  or  revised  terms  and  conditions 
of  sale  first  filed  shall  become  effective.  At  the  time  of  filing  price 
lists  or  discount  sheets,  in  accordance  with  this  paragraph,  each 
Member  of  the  Industry  shall  furnish  the  Supplementary  Code  Au- 
thority, for  distribution,  such  number  of  copies  of  his  price  lists 
and/or  discount  sheets  and  any  revisions  thereof,  as  the  Supple- 
mentary Code  Authority  may  prescribe.^ 

Sec.  3.  No  member  of  the  Industry  shall  sell  or  offer  for  sale  any 
product  of  the  Industry  at  prices  other  than  the  prices  noted  in 
its  price  lists,  or  terms  and  conditions  of  sale  other  than  the  terms 
and  conditions  of  sale  previously  filed  by  such  member  with  the 
Supplementary  Code  Authority  in  accordance  with  the  provisions 
of  Section  2  of  this  Article  and  in  effect  at  the  time  of  such  sale. 

Sec.  4.  The  following  paragraphs  describe  and  shall  constitute 
unfair  methods  of  competition : 

a.  (1)  To  publish  advertising  (whether  printed,  radio,  display,  or 
of  any  nature)  which  is  misleading  or  inaccurate  in  any  material 
particular,  nor  shall  any  member  in  any  w^ay  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. 

(2)  To  make  disparaging  statements  respecting  the  business 
methods,  practices,  or  products  of  another  member  of  the  Industry. 

b.  To  knowingly  withhold  from  or  insert  in  any  quotation  or 
invoice  any  statement  that  makes  it  inaccurate  in  any  material 
particular. 

c.  To  brand  or  pack  any  goods  in  any  manner  which  is  intended  to 
or  does  deceive  or  mislead  purchasers  with  respect  to  the  brand, 
grade,  quality,  quantitj^,  origin,  size,  substance,  character,  nature, 
finish,  material,  content,  or  preparation  of  such  goods. 

d.  To  publish  or  circulate  unjustified  or  unwarranted  threats  of 
legal  proceedings  which  tend  to  or  have  the  effect  of  harassing  com- 
petitors or  intimidating  their  customers.  Failure  to  prosecute  in 
due  course  shall  be  evidence  that  any  such  threat  is  unwarranted  or 
unjustified. 

e.  To  allow  or  make  payment  or  allowance  of  a  rebate,  refund, 
commission,  credit,  unearned  discount,  excess  allowance,  or  allo^yance 
for  customer  advertising,  catalogues,  or  illegitimate  premiums, 
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. 

f.  To  ship  goods  on  consignment  except  under  circumstances  to 
be  defined  by  the  Supplementary  Code  Authority,  subject  to  the 
approval  of  the  Administrator,  where  peculiar  circumstances  of 
the  Industry  require  the  practice. 

vSee  paragraph  2  of  order  approving  this  Code. 


749 

g.  No  member  of  the  Industry  shall  attempt  to  induce  a  breach  of 
an  existing  contract  between  a  competitor  and  his  employee  (other 
than  employment  contracts),  or  customer  or  source  of  supply;  nor 
shall  any  member  interfere  with  or  obstruct  the  performance  of 
such  contractual  duties  or  services. 

h.  To  offer  or  extend  a  guarantee  against  decline  or  advance  in 
the  selling  price  of  products. 

i.  To  agree  to  liquidate,  purchase,  or  accept  shipment  of  a  com- 
petitor's product  from  a  customer,  in  order  to  sell  member's  own 
product. 

j.  To  authorize  the  return  of  product  for  a  credit,  where  known 
to  be  obsolete,  or  where  sales  record  of  preceding  year  indicates  lack 
of  marketability. 

k.  To  post  date  an  invoice. 

1.  To  extend  protection  against  price  advance  or  decline  of  prod- 
ucts through  the  signing  of  requirement  contracts. 

m.  To  make  an  alloAvance  for  all  or  any  portion  of  transportation 
costs,  except  where  transportation  charges  are  figured  as  a  j^art  of 
the  original  costs  and  are  included  in  the  selling  price. 

n.  To  enter  into  any  agreement  to  assume  responsibility  for  conse- 
quential damages  and  other  items  of  expense  which  normally  cannot 
be  anticipated  in  original  costs  or  selling  prices. 

Sec.  5.  Export  trade. — No  provision  of  this  Supplementary  Code 
relating  to  prices  or  terms  of  selling,  shipping,  or  marketing,  shall 
apply  to  export  trade  or  sales  or  shipments  for  export  trade.  Unless 
and  to  the  extent  that  the  Supplementary  Code  Authority  shall 
otherwise  determine,  the  sale  of  an}^  product  by  any  member  of  the 
Industry  for  direct  shipment  to  Alaska,  the  Philippines,  Hawaii,  or 
Puerto  Rico  or  other  insular  possessions  of  the  United  States  of 
America  shall  not  be  deemed  export  trade. 

Article  VI — Modifications 

Section  1.  This  Supplementary  Code  and  all  the  provisions 
thereof  are  expressly  made  subject  to  the  right  of  the  President,  in 
accordance  with  the  provisions  of  subsection  (b)  of  Section  10  of 
the  Act,  from  time  to  time  to  cancel  or  modify  any  order,  approval, 
license,  rule,  or  regulation  issued  under  the  said  Act. 

Sec.  2.  By  presenting  this  Supplementary  Code  the  members  of 
the  Industry  do  not  thereby  consent  to  any  modification  thereof,  and 
they  reserve  the  right  to  object  to  m\y  such  modifications  without 
being  given  an  opportunity  to  be  heard. 

Sec.  3.  This  Supplemenary  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  VII — General  Provisions 

Section  1.  No  provision  of  this  Supplementary  Code  shall  be 
applied  so  as  to  permit  monopolies  or  monopolistic  practices,  or  to 
eliminate,  oppress,  or  discriminate  against  small  enterprises. 


750 

Sec.  2.  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. 

Sec.  3.  This  Supplementary  Code  shall  not  affect  patent  rights. 

Article  VIII — Dueation  of  Supplementary  Code 

This  Supplementary  Code  shall  become  effective  at  12 :  01  a.m. 
o'clock  on  the  tenth  day  after  it  is  approved  by  the  President  and 
shall  continue  in  effect,  until  June  16,  1935,  or  the  earliest  date  prior 
thereto  on  which  the  President  shall,  by  proclamation,  or  the  Con- 
gress shall,  by  joint  resolution,  declare  that  the  emergency  recog- 
nized by  Section  1  of  the  National  Industrial  Recovery  Act  has 
ended. 

Approved  Code  No.  84 — Supplement  No.  3. 
Registry  No.  1107-1-01. 


Approved  Code  No.  84 — Supplement  No.  4 
SUPPLEMENTARY  CODE   OF   FAIR  COMPETITION 

FOR   THE 

ELECTRIC  INDUSTRIAL  TRUCK  MANUFACTURING 

INDUSTRY 

As  Approved  on  January  31,  1934 


ORDER 


Supplementary    Code    of    Fair    Competition    for    the    Electric 
Industrial  Truck  Manufacturing  Industry 

A  division  of  the  fabricated  metal  products  manufacturing  and 
metal  finishing  and  metal  coating  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,  and  in  accordance  with 
the  provisions  of  Section  I  of  Article  VI  of  the  Basic  Code  for  the 
Fabricated  Metal  Products  Manufacturing  and  Metal  Finishing  and 
Metal  Coating  Industry,  approved  November  2,  1933,  for  approval 
of  a  Supplementary  Code  of  Fair  Competition  for  the  Electric 
Industrial  Truck  Manufacturing  Industry;  and  hearing  having  been 
duly  held  thereon;  and  the  annexed  report  on  said  Supplementary 
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  A'ested  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  Supplementary  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  Supplementary  Code  of  Fair  Competition  be  and  it  is 
hereby  approved;  provicled,  however,  that  the  provisions  of  Article 
V,  Section  2,  insofar  as  they  prescribe  a  waiting  period  between 
the  filing  with  the  Code  Authority  (i.e.  actual  receipt  by  the  Code 
Authority)  and  the  effective  date  of  revised  price  lists  or  revised 
terms  and  conditions  of  sale  be  and  they  are  hereby  stayed  for  a 

(751) 


752 

period  of  sixty  days  or  pending  the  completion  of  a  study  now  being 
conducted  by  the  National  Recovery  Administration,  and  at  the  end 
of  such  period  said  provisions  shall  become  effective  unless  I,  by  my 
further  Order,  otherwise  determine. 

Hugh  S.  Johnson, 
AdTninistrator  for  Industrial  Recovery. 

Approval  recommended : 

W.  A.  Harriman, 

Division  A dminis trator. 

Washington,  D.C, 

January  31, 193^. 


/  EEPORT  TO  THE  PRESIDENT 

The  President. 

The  White  House. 

Sir  :  This  is  a  report  on  the  Supplementary  Code  of  Fair  Compe- 
tition for  the  Electric  Industrial  Truck  Manufacturing  Industry,  a 
division  of  the  Fabricated  Metal  Products  Manufacturing  and  Metal 
Finishing  and  Metal  Coating  Industry,  and  on  the  hearing  conducted 
thereon  in  Washington,  D.CI,  December  18,  1933,  in  accordance  with 
the  provisions  of  Title  I  of  the  National  Industrial  Recovery  Act. 

GENERAL  STATEMENT 

The  Electric  Industrial  Truck  Manufacturing  Industry,  being 
truly  representative  of  this  division  of  the  Fabricated  Metal  Prod- 
ucts Manufacturing  and  Metal  Finishing  and  Metal  Coating  Indus- 
tr}?-,  has  elected  to  avail  itself  of  the  option  of  submitting  a  Sup- 
plementary Code  of  Fair  Practice,  as  provided  for  in  Section  1  of 
Article  VI  of  the  Basic  Code,  for  the  Fabricated  Metal  Products 
Manufacturing  and  Metal  Finishing  and  Metal  Coating  Industry 
approved  by  you  on  the  second  day  of  November  1933, 

RESUME  OF  THE  CODE 

Article  I  states  the  purpose  of  the  Supplementary  Code. 

Article  II  accurately  defines  specific  terms  employed  in  the  Stip- 
plementary  Code. 

Article  III.  This  Industry  is  a  division  of  the  Fabricated  Metal 
Products  Manufacturing  and  Metal  Finishing  and  Metal  Coating 
Industry  and  the  labor  provisions  of  its  Basic  Code,  as  approved 
November  2,  1933,  are  the  labor  provisions  of  this  Supplementary 
Code. 

Article  IV  establishes  a  Supplementary  Code  Authority  consisting 
of  the  five  (5)  members  of  the  Board  of  Trustees  of  the  Electric 
Industrial  Truck  Institute.  Inc.,  or  its  successor,  and  one  member 
chosen  from  the  Industry  by  the  vote  of  the  members  thereof,  and 
gives  the  Administrator  the  authority  to  appoint  one  additional 
member  without  vote  and  provides  machinery  for  obtaining  statistics 
and  the  administration  of  this  Supplementary  Code. 

Article  V  sets  forth  the  fair  trade  practices  of  this  Supplementary 
Code  which  has  been  especially  designed  to  effect  fair  competition 
in  this  division  of  the  Industry. 

Article  VI  contains  the  mandatory  provisions  contained  in  Sec- 
tion 10  (b)  of  the  Act  and  also  provides  for  the  submission  of  pro- 
posed amendments  to  the  Supplementary  Code. 

Article  VII  provides  against  monopolies  and  monopolistic  prac- 
tices, and  recognizes  that  price  increases  be  limited  to  actual  addi- 
tional increases  in  the  seller's  costs. 

Article  VIII  states  the  effective  date  of  this  Supplementary  Code, 

(753) 


754 

FINDINGS 

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

I  find  that — 

(a)  Said  Supplementary  Code  is  well  designed  to  promote  the 
policies  and  purposes  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  provide  for  the  general  welfare  by  promoting  the  organiza- 
tion 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- 
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  purchas- 
ing 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  Supplementary  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. 

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

(e)  The  Supplementary  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  Supplementary  Code. 

For  these  reasons,  therefore,  I  have  approved  this  Supplementary 
Code. 

Kespectfully, 

Hugh  S.  Johnson, 

Administrator. 
January  31,  1934. 


SUPPLEMENTARY  CODE  OF  FAIR  COMPETITION  FOR 
THE  ELECTRIC  INDUSTRIAL  TRUCK  MANUFACTUR- 
ING INDUSTRY 

A   DIVISION   OF   THE   FABRICATED    METAL   PRODUCTS   MANUFACTURING  AND 
METAL  FINISHING  AND  METAL  COATING  INDUSTRY 

Article  I — Purposes 

To  effectuate  the  policy  of  Title  I  of  the  National  Industrial  Re- 
covery Act,  the  following  provisions  are  established  as  a  Supple- 
mentary Code  of  Fair  Competition  for  the  Electric  Industrial  Truck 
Manufacturing  Industry,  pursuant  to  Article  VI  of  the  Basic  Code 
of  Fair  Competition  for  the  Fabricated  Metal  Products  Manufac- 
turing and  Metal  Finishing  and  Metal  Coating  Industry,  approved 
by  the  President  of  the  United  States  on  the  second  day  of  November 
1933,  and  upon  approval  by  the  President  of  the  United  States  the 
provisions  of  this  Supplementary  Code  shall  be  the  Standard  of 
Fair  Competition  for  and  shall  be  binding  upon  every  member 
thereof. 

Article  II — Definitions 

The  term  "  The  Electric  Industrial  Truck  Manufacturing  Indus- 
tiy  ".  hereafter  referred  to  as  the  Industry,  means  and  includes  the 
manufacture  or  purchase  of  component  parts  for  assembly  and  for 
sale  of  all  types  of  electric  industrial  trucks,  electric  industrial 
tractors,  electric  industrial  cranes,  which  use  low-voltage  electric 
motors  for  motive  power,  and  accessories. 

The  term  "  Member  of  the  Industry  "  includes,  but  without  limi- 
tation, any  individual,  partnership,  association,  corporation,  or  other 
form  of  enterprise  engaged  in  the  Industry,  either  as  an  employer 
or  on  his  or  its  own  behalf. 

The  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  "  Basic  Code  "  as  used  herein  is  defined  to  mean  the 
Basic  Code  of  Fair  Competition  for  the  Fabricated  Metal  Products 
Manufacturing  and  Metal  Finishing  and  Metal  Coating  Industry,  as 
approved  by  the  President  of  the  United  States  on  the  second  day  of 
November  1933. 

The  term  "  Supplementary  Code  Authority  "  as  used  herein  means 
the  agency  which  shall  supervise  the  administration  of  this  Supple- 
mentary Code. 

(755) 


756 

The  term  "  Institute "  as  used  herein  is  defined  to  mean  The 
Electric  Industrial  Truck  Institute,  Inc.,  or  its  successor. 

The  term  "  Federation  "  as  used  herein  is  defined  to  mean  The 
Fabricated  Metal  Products  Federation,  or  its  successor. 

Article  III — Employment  Provisions 

This  Industry  is  a  division  of  the  Fabricated  Metal  Products 
Manufacturing  and  Metal  Finishing  and  Metal  Coating  Industry 
and  the  labor  provisions  of  its  Basic  Code  as  approved  by  the  Presi- 
dent of  the  United  States  are  the  labor  provisions  of  this  Supple- 
mentary Code. 

Article  IV — Organization  and  Administration 

Section  1.  The  Supplementary  Code  Authority  is  hereby  consti- 
tuted the  agency  to  administer  the  provisions  of  this  Supplementary 
Code,  and  shall  consist  of  the  five  (5)  members  of  the  Board  of 
Trustees  of  the  Institute  and  one  member  chosen  from  the  Industry 
by  the  vote  of  the  membei's  thereof.  The  Administrator  may  ap- 
point one  representative  to  serve  without  vote  and  without  expense 
to  the  Industry  unless  the  Supplementary  Code  Authority  shall 
agree  to  pay  such  expenses  as  a  member  of  the  Supplementary  Code 
Authority.  The  president  of  the  Institute  is  hereby  constituted  the 
agent  to  collect  and  distribute  all  statistical  reports  of  the  Industry 
as  required  by  the  Supplementary  Code  Authority.  With  a  view 
to  keeping  the  President  of  the  United  States  informed  as  to  the 
observance  or  nonobservance  of  this  Supplementary  Code,  said  agent 
shall  collect  such  statistics  as  called  for  by  the  President  and/or 
the  Administrator  and  send  them  in  such  form  as  the  President 
and/or  the  Administrator  may  require  to  the  Federation,  as  the 
agency  administering  said  Basic  Code. 

Sec.  2.  The  President  of  the  Institute,  as  such  agent,  shall  also, 
from  time  to  time,  furnish  to  the  Basic  Code  Authority,  designated 
in  said  Basic  Code,  such  information  as  may  be  required  to  be  fur- 
nished under  the  terms  of  said  Basic  Code. 

Sec.  3.  All  data  filed  in  accordance  with  the  provisions  of  this 
Supplementary  Code  shall  be  confidential  and  shall  not  be  revealed, 
except  in  composite  form,  to  anyone  other  than  an  authorized  govern- 
mental agency. 

Sec.  4.  Any  or  all  information  furnished  to  the  President  of  the 
Institute  by  any  member  of  the  Industry  shall  be  subject  to  checking 
for  the  purpose  of  verifying  by  an  examination  of  the  pertinent  books 
and  accounts  and  records  of  such  member  by  any  disinterested  person 
or  persons,  mutually  agreed  upon  by  the  Supplemetary  Code  Author- 
ity and  the  member  of  the  Industry  whose  books  and  accounts  and 
records  are  to  be  examined,  or  by  a  person  or  persons  nominated  by 
the  Supplementary  Code  Authority  and  approved  by  the  Adminis- 
trator. The  cost  of  such  examination  shall  be  treated  as  an  expense 
of  administering  the  Code ;  provided,  however,  that  if  upon  such  ex- 
amination any  such  information  shall  be  shown  to  have  been  incorrect 
in  any  material  respect,  such  costs  shall  be  paid  by  the  member  of 
the  Industry  which  furnished  such  information. 


757 

Sec.  5.  To  further  effectuate  the  policies  of  the  Act  and  for  the 
administration  of  this  Supplementary  Code,  the  constituted  authori- 
ties and  methods  of  government  of  the  Industry  shall  be  as  follows : 

(a)  The  Supplementary  Code  Authority  shall  have  general  power 
and  supervision  over  the  enforcement  of  the  provisions  of  this  Sup- 
plementary Code  and  it  is  hereby  designated  as  the  agency  for  admin- 
istering, supervising,  and  promoting  the  observance  of  the  provisions 
of  this  Supplementary  Code,  and  shall  have  power  to  obtain  from  all 
members  of  the  Industry  such  reasonable  and  pertinent  data  as  may 
be  necessary  for  the  administration  of  the  provisions  of  this  Supple- 
mentary Code.  The  request  for  reports  from  members  of  the  Indus- 
try shall  not  be  made  in  any  manner  which  will  impose  unequal  obli- 
gations upon  members  of  the  Industry. 

(b)  The  Supplementary  Code  Authority  shall  have  power  to  in- 
vestigate on  its  own  initiative  or  on  complaint,  the  operation  of  the 
Supplementary  Code  and  any  alleged  violation  of  the  Supplementary 
Code  by  any  member  of  the  Industry ;  to  make  findings  of  fact  and  to 
state  its  conclusions  as  to  whether  or  not  there  has  been  any  violation 
of  any  provision  of  the  Supplementary  Code,  and  except  as  herein- 
after provided,  to  take  such  steps  as  it  may  deem  necessary  or  advis- 
able, within  the  provisions  of  the  Supplementary  Code,  subject  to 
rules  and  regulations  by  the  Administrator. 

(c)  No  member  of  the  Supplementary  Code  Authority  shall  par- 
ticipate, as  a  member  of  such  Supplementary  Code  Authority,  in 
any  proceedings  in  which  he  is  interested  as  the  complainant  or 
respondent,  or  in  which  he  is  in  any  other  manner  directly  interested, 
and  in  the  event  of  any  such  disqualification,  the  remaining  members 
of  such  Supplementary  Code  Authority  shall  certify  such  disqualifi- 
cation, together  with  the  reasons  therefor  and  shall  promptly  desig- 
nate a  person  to  sit  as  a  special  member  of  such  Supplementary  Code 
Authority  for  the  purpose  of  such  proceedings. 

(d)  The  Supplementary  Code  Authority  may  delegate  any  of  its 
duties  to  such  person  of  persons,  committee  or  committees,  as  it  may 
select;  provided,  that  it  shall  not  delegate  any  of  its  duties  to  any 
person  who  is  subject  to  disquahfication,  as  in  paragraph  (c)  above 
provided ;  and  provided  further,  that  such  delegation  shall  not  relieve 
the  Supplementary  Code  Authority  from  any  of  its  responsibilities 
under  this  Supplementary  Code, 

(e)  The  Supplementary  Code  Authority  may,  subject  to  the  ap- 
proval of  the  Administrator,  upon  finding,  by  a  three  fifths  vote, 
that  the  respondent  assenting  member  of  the  Industry  has  violated 
this  Supplementary  Code,  assess  all  costs  in  connection  wath  such 
investigation  and  disposition  of  such  complaint  against  said  respond- 
ent assenting  member  of  the  Industry.  If  any  assenting  member  of 
the  Industry  makes  a  formal  complaint  to  the  Supplementary  Code 
Authority  which  proves,  after  investigation  by  the  Supplementary 
Code  Authority  and  approval  by  the  Administrator,  to  be  without 
foundation  in  fact,  then  the  Supplementary  Code  Authority  may 
assess  against  the  assenting  member  of  the  Industry  bringing  such 
formal  complaint,  all  costs  in  connection  w^ith  the  investigation  and 
disposition  of  such  complaint.  All  assessments  to  be  paid  into  the 
treasury  of  the  Institute  as  the  Agency  of  the  Supplementary  Code 
Authority. 


758 

(f)  Each  member  of  the  Industry  subject  to  the  jurisdiction  of 
this  Supplementary  Code  shall  pay  to  the  Institute  as  the  agency 
of  the  Supplementary  Code  Authority  his  or  its  j^roportionate  share 
of  the  amount  necessary  to  pay  the  cost  of  assembling,  analyzing, 
and  publication  of  such  reports  and  data  and  of  the  maintenance  of 
the  Supplementary  Code  Authority  in  connection  with  its  activities 
relative  to  the  administration  of  this  Supplementary  Code;  said 
proportionate  share  to  be  based  upon  the  volume  of  business  and/or 
such  other  factors  as  the  Supplementary  Code  Authority  may  pre- 
scribe. 

(g)  A  meeting  of  the  Members  of  the  Industry  may  be  called  and 
held  at  any  time  by  order  of  the  Supplementary  Code  Authority  or 
members  of  the  Industry  having  the  right  to  cast  at  least  51%  of 
all  votes  which  might  be  cast  at  such  a  meeting.  At  least  five  days' 
notice  to  each  member  of  the  Industry  shall  be  given. 

(h)  Each  member  of  the  Industry  who  assents  to  and  complies 
with  the  provisions  of  this  Supplementary  Code,  and  who  is  not 
delinquent  in  the  payment  of  any  assessments  made  under  the  pro- 
visions of  this  Supplementary  Code,  shall  be  entitled  to  cast  one 
vote,  either  in  person  or  by  proxy,  in  writing,  duly  executed  by  such 
member  of  the  Industry,  and  filed  with  the  Supplementary  Code 
Authority  within  a  reasonable  time  prior  to  the  time  set  for  the 
meeting,  at  all  meetings  of  the  members  of  the  Industry. 

Sec.  6.  The  Supplementary  Code  Authority  shall  have  the  follow- 
ing further  powers  and  duties : 

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

(b)  To  make  recommendations  to  the  Administrator  for  the  co- 
ordination of  the  administration  of  this  Supplementary  Code  with 
such  other  Codes  as  may  be  related  to  the  Industry. 

(c)  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  Supplementary  Code. 

(d)  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. 

(e)  To  recommend  from  time  to  time  standards  of  shipment 
terms. 

(f)  To  recommend  from  time  to  time  standards  for  guaranty 
on  products. 

Sec.  7.  Nothing  contained  in  this  Supplementary  Code  shall  con- 
stitute the  members  of  the  Supplementary  Code  Authority  partners 
for  any  purpose ;  nor  shall  any  member  of  the  Supplementary  Code 
Authority  be  liable  in  any  manner  to  anyone  for  any  act  of  any  other 
member,  officer,  agent,  or  employee  of  the  Supplementary  Code 
Authority.  Nor  shall  any  member  of  the  Supplementary  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  Supplementary  Code,  except  for  his  wilful  misfeasance  or 
nonfeasance. 


759 

Sec.  8.  If  the  Administrator  shall  determine  that  any  action  of 
the  Supplementary  Code  Authority  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  such 
action  and  further  consideration  by  such  Supplementary  Code 
Authority  or  agency,  pending  final  action,  which  shall  be  taken  only 
upon  approval  by  the  Administrator. 

Article  V — Unfair  Trade  Practices 

For  all  purposes  of  the  Supplementary  Code,  any  member  of  the 
Industry  who  shall,  directly  or  indirectly,  through  any  officer,  em- 
ployee, agent,  or  representative,  violate  the  following  provisions  of 
this  Article,  shall  be  deemed  guilty  of  unfair  trade  practice  and  a 
violation  of  this  Supplementary  Code. 

Section  1.  Each  member  of  the  Industry  shall  use  an  adequate 
cost  accounting  system  which  shall  conform  to  the  cost  accounting 
system  recommended  by  the  Supplementary  Code  Authority  and 
approved  by  the  Administrator  as  hereinafter  provided.  The  Sup- 
plementary Code  Authority  shall  recommend  for  use  in  the  Industry 
a  uniform  and  adequate  cost  accounting  system  which  shall  be  adapt- 
able to  the  cost  accounting  procedure  and  to  the  business  of  the 
Industry.  Such  plan  shall  specify  the  factors  which  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 
accounting  for  the  Industry,  complete  advice  concerning  it  shall  be 
distributed  by  the  Supplementary  Code  Authority  to  all  members 
of  the  Industry.  Thereafter  each  member  of  the  Industry  shall  file 
with  the  agent  designated  under  Article  IV,  Section  1,  of  this  Sup- 
plementary Code  his  costs  for  typical  items  of  the  products  of  the 
Industry  offered  for  sale  by  him.  Thereafter  no  member  of  the 
Industry  shall  initiate  a  selling  price  below  his  own  cost,  or  sell  the 
product  of  the  Industry  at  such  price  or  upon  such  terms  or  condi- 
tions of  sale  as  will  result  in  the  purchaser's  paying  for  such  product 
less  than  the  cost  of  that  member  of  the  Industry  who  has  filed  the 
lowest  cost ;  provided,  however,  that  any  member  of  the  Industry  may 
sell  below  his  own  costs  to  meet  existing  competition,  when  such 
prices  have  been  filed  in  accordance  with  Section  2  of  this  Article; 
and  provided  further,  that  the  Supplementary  Code  Authority  may 
approve,  subject  to  disapproval  by  the  Administrator,  the  sale  of 
surplus  stocks  below  such  costs  where  necessary  to  relieve  financial 
emergencies.  A  detailed  record  of  such  surplus  stocks  shall  be  filed 
with  and  checked  by  such  impartial  agency  as  the  Supplementary 
Code  Authority  may  designate  at  the  time  of  application  for  such 
approval. 

Sec.  2.  Each  member  of  the  Industry  shall  publish  and  file  with 
the  Supplementary  Code  Authority  within  ten  days  after  the  effec- 
tive date  of  the  Supplementary  Code,  price  lists  individually  pre- 
pared by  him  of  all  products  offered  for  sale  or  sold  by  him  and  all 
terms  and  conditions  of  sale  relating  thereto.  Such  price  lists  shall 
state  for  each  grade  and  kind  of  each  product  sold  or  offered  for  sale, 
one  price  with  appropriate  discounts  therefrom,  if  any  allowed,  for 


760 

sales  to  classified  types  of  purchasers.  Such  price  lists  and  terms  and 
conditions  of  sale' so  filed  with  the  Supplementary  Code  Authority 
shall  be  open  to  inspection  at  all  reasonable  times  by  any  interested 
party.  Revised  price  lists  or  revised  terms  and  conditions  of  sale, 
if  made,  shall  be  filed  from  time  to  time  thereafter  with  the  Supple- 
mentary Code  Authority  by  any  Member  of  the  Industry;  provided, 
however,  that  such  revisions  shall  be  filed  with  the  Supplementary 
Code  Authority  ten  days  in  advance  of  the  effective  date  thereof; 
and,  provided  further,  that  any  other  member  of  the  Industry  may 
file  revisions  of  his  price  lists  or  terms  and  conditions  of  sale  to  meet 
the  revisions  first  filed  which  may  become  effective  on  the  date  when 
the  revised  price  hsts  or  revised  terms  and  conditions  of  sale  first 
filed  shall  become  effective.  At  the  time  of  filing  price  lists  or  dis- 
count sheets,  in  accordance  with  this  paragraph,  each  Member  of 
the  Industry  shall  furnish  the  Supplementary  Code  Authority,  for 
distribution,  such  number  of  copies  of  his  price  lists  and  or  discount 
sheets  and  any  revisions  thereof,  as  the  Supplementary  Code  Author- 
ity may  prescribe. 

Sec.  3.  Xo  member  of  the  Industry  shall  sell  or  offer  for  sale  any 
product  of  the  Industry  at  prices  other  than  the  prices  noted  in  its 
price  lists,  or  terms  and  conditions  of  sale  other  than  the  terms  and 
conditions  of  sale  previously  filed  by  such  member  with  the  Supple- 
mentary Code  Authority  in  accordance  with  the  provisions  of  Sec- 
tion 2  of  this  Article  and  in  effect  at  the  time  of  such  sale. 

Sec.  4.  The  following  paragraphs  describe  and  shall  constitute 
imf air  methods  of  competition : 

(a)  1.  To  publish  advertising  (whether  printed,  radio,  display, 
or  of  any  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. 

2.  To  make  disparaging  statements  respecting  the  business  meth- 
ods, practices,  or  products  of  another  member  of  the  Industry. 

(b)  To  knowingly  withhold  from  or  insert  in  any  quotation  or 
invoice  anv  statement  that  makes  it  inaccurate  in  anv  material 
particular. 

(c)  To  brand  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. 

(d)  To  publish  or  circulate  unjustified  or  unwarranted  threats  of 
legal  proceedings  which  tend  to  or  have  the  effect  of  harassing  com- 
petitors or  intimidating  their  customers.  Failure  to  prosecute  in 
due  course  shall  be  evidence  that  any  such  threat  is  unwarranted 
or  unjustified. 

(e)  To  allow  or  make  payment  or  allowance  of  a  rebate,  refund, 
commission,  credit,  unearned  discount,  excess  allowance,  or  allow- 
ance for  customer  advertising,  catalogues,  or  illegitimate  premiums, 
whether  in  the  form  of  money  or  otherwise,  nor  shall  a  member  of 
the  Industry  secretly  offer  or  extend  to  an}'  customer  any  special 


I 


761 

service  or  privilege  not  extended  to  all  customers  of  the  same  class, 
for  the  purpose  of  influencing  a  sale. 

(f)  To  ship  goods  on  consignment  except  under  circmiistances  to 
be  defined  b}'  the  Supplementary  Code  Authority,  subject  to  the 
approval  of  the  Administrator,  where  peculiar  circumstances  of  the 
Industry  require  the  practice. 

(g)  Xo  member  of  the  Industry  shall  attempt  to  induce  a  breach 
of  an  existing  contract  between  a  competitor  and  his  employee 
(other  than  employment  contracts),  or  customer  or  source  of  sup- 
ply; nor  shall  any  member  interfere  with  or  obstruct  the  perform- 
ance of  such  contractual  duties  or  services. 

(h)  To  oifer  or  extend  a  guarantee  against  decline  or  advance  in 
the  selling  price  of  products. 

(i)  To  agree  to  liquidate,  purchase,  or  accept  shipment  of  a 
competitor's  product  from  a  customer,  in  order  to  sell  a  member's 
own  product. 

(j)  To  authorize  the  return  of  product  for  a  credit,  where  known 
to  be  obsolete,  or  where  sales  record  of  preceding  year  indicates  lack 
of  marketability. 

(k)   To  postdate  an  invoice. 

(1)  To  extend  protection  against  price  advance  or  decline  of  prod- 
ucts through  the  signing  of  requirement  contracts. 

(m)  To  make  an  allowance  for  all  or  any  portion  of  transporta- 
tion costs,  except  where  transportation  charges  are  figured  as  a  part 
of  the  original  costs  and  are  included  in  the  selling  price, 

(n)  To  enter  into  any  agreement  to  assume  responsibility  for  con- 
sequential damages  and  other  items  of  expense  which  normalh'  can- 
not be  anticipated  in  original  costs  or  selling  prices. 

Sec.  5.  Export  Trade. — Xo  provision  of  this  Supplementary  Code 
relating  to  prices  or  terms  of  selling,  shipping,  or  marketing,  shall 
apply  to  export  trade  or  sales  or  shipments  for  export  trade.  Unless 
and  to  the  extent  that  the  Supplementary  Code  Authority  shall 
otherwise  determine,  the  sale  of  any  product  by  any  member  of  the 
Industry  for  direct  shipment  to  Alaska,  the  Philippines.  Hawaii,  or 
Puerto  Rico  or  other  insular  possessions  of  the  United  States  of 
America  shall  not  be  deemed  export  trade. 

Article  VI — Modificatioxs 

Section  1.  This  Supplementary  Code  and  all  the  provisions  thereof 
are  expressly  made  subject  to  the  right  of  the  President,  in  accord- 
ance with  the  provisions  of  subsection  (b)  of  Section  10  of  the  Act, 
from  time  to  time  to  cancel  or  modify  any  order,  approval,  license, 
rule,  or  regulation  issued  under  the  said  Act. 

Sec.  2.  By  presenting  this  Supplementary  Code  the  members  of 
the  Industry  do  not  thereby  consent  to  any  modification  thereof,  and 
they  reserve  the  right  to  object  to  any  such  modifications  without 
being  given  an  opportunity  to  be  heard. 

Sec.  3.  This  Supplementary  Code,  except  as  to  provisions  re- 
quired by  the  Act,  may  be  modified  on  the  basis  of  experience  or 
changes  in  circumstances,  such  modification  to  be  based  upon  appli- 
cation to  the  Administrator  and  such  notice  and  hearing  as  he  shall 
specify;  and  to  become  effective  on  approval  bj^  the  Administrator. 

40121—34 S 


762 
Article  VII — General  Provisions 

Section  1.  No  provisions  of  this  Supplementary  Code  shall  be 
applied  so  as  to  permit  monopolies  or  monopolistic  practices,  or 
to  eliminate,  oppress,  or  discriminate  against  small  enterprises. 

Sec.  2.  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. 

Sec.  3.  This  Supplementary  Code  shall  not  affect  patent  rights. 

Article  VIII — Duration  of  Supplementary  Code 

This  Supplementary  Code  shall  become  effective  at  12 :  01  a.m. 
o'clock  on  the  tenth  day  after  it  is  approved  by  the  President  and 
shall  continue  in  effect  until  June  16,  1935,  or  the  earliest  date  prior 
thereto  on  which  the  President  shall,  by  proclamation,  or  the  Con- 
gress shall,  by  joint  resolution,  declare  that  the  emergency  recognized 
by  Section  1  of  the  National  Industrial  Recovery  Act  has  ended. 

Approved  Code  No.  84 — Supplement  No.  4, 
Registry  No.  1421-01. 


EXECUTIVE  ORDERS 


763 


EXECUTIVE  ORDER 

Administration  for  Industrial  Recovery 

Pursuant  to  the  authority  vested  in  me  by  Title  I  of  the  National 
Industrial  Recovery  Act,  approved  June  16,  1933,  and  in  supplement 
to  my  Executive  Order  of  June  16,  1933,  appointing  Hugh  S.  Jolmson 
to  be  the  Administrator  for  Industrial  Recovery  under  Title  I  of  said 
Act,  and  appointing  a  Special  Industrial  Recovery  Board,  I  hereby 
authorize  the  Administrator,  subject  to  the  general  approval  of  the 
Special  Industrial  Recovery  Board,  to  appoint  the  necessary  personnel 
on  a  permanent  basis,  to  fix  their  compensation,  and  to  conduct  such 
hearings  and  to  exercise  such  other  functions  as  are  vested  in  me  by 
Title  I  of  said  Act,  except  the  approval  of  codes,  or  maldng  of  agree- 
ments, or  issuance  of  licenses,  or  exercise  of  powers  conferred  in 
Section  3  (e),  Section  6  (c).  Section  8  (b).  Section  9,  and  Section  10. 

FRANKLIN  D.  ROOSEVELT. 

The  White  House, 

July  15,  1933. 

[No.  6205-A] 


ADMINISTRATIVE  ORDERS 


765 


ADMINISTRATIVE  ORDER  NO.  33-3 


ADMINISTRATOR'S  ORDER 

Temporary  Modification  of  Method  of  Computing  Costs  in  Accordance 
WITH  Section  8  of  Article  VIII,  Retail  Lumber,  Lumber  Products, 
Building  Materials  and  Building  Specialties  Industry  Code 

A  Code  of  Fair  Competition  for  the  Retail  Lumber,  Lumber  Prod- 
ucts, Building  Materials  and  Building  Specialties  Industry  was 
approved  by  the  President  October  3,  1933. 

It  has  been  shown  to  me  that  the  retail  lumber  trade  faces  a  serious 
competitive  situation  in  which  certain  larger  members  of  the  industry 
are  likely  to  sell  at  less  than  fair  prices  large  stocks  of  lumber  purchased 
at  distress  prices,  and  that  tliis  would  have  the  effect  of  driving  out 
of  business  a  great  many  small  dealers  who  render  a  useful  and  eco- 
nomic service  in  normal  times. 

In  order  to  prevent  the  destruction  of  these  smaller  business-men, 
the  Code  Authority  of  said  Code  has  submitted  to  me  a  request  to 
change  the  method  of  computing  costs  specified  in  said  Section  8  of 
the  said  Article  VIII  and  has  submitted  to  me  an  application  for  a 
re\asion  of  the  factors  to  be  included  in  a  determination  of  costs 
pursuant  to  the  said  Code  and  for  a  revision  of  the  methods  by  which 
such  factors  are  to  be  determined,  as  follows: 

(1)  Actual  cost  of  merchandise  to  the  dealer  as  used  in  the  said 
Section  8  of  Article  VIII  shall  in  no  case  be  less  than  the  effective 
minimum  delivered  price  established  by  the  Code  Authority  of  the 
Code  of  Fair  Competition  for  the  Lumber  and  Timber  Products 
Industry  or  by  the  Code  Authority  of  such  other  industries  whose 
products  are  handled  by  a  retail  lumber  dealer,  or,  in  the  event  that 
no  such  price  has  been  established  or  is  effective,  the  actual  cost  of 
merchandise  at  the  current  market  minimum  price. 

(2)  Model  handling  and  delivery  cost  per  thousand  feet  shall  not 
be  less  than  the  amount  hereinbelow  specified  opposite  the  specified 
minimum  wage  areas  in  such  specified  minimum  wage  areas. 

45^  and  50^  Wage  Area  $4.33  plus  $1.59  or  $5.92.     Use  $6.00. 
40^  "         "    $3.97  plus  $1.59  or  $5.66.     Use  $5.60. 

35^  "         "    $3.61  plus  $1.59  or  $5.20.     Use  $5.20. 

25^and30f^       "         "    $3.25  plus  $1.59  or  $4.84.     Use  $4.80. 

(3)  The  model  conversion  factor  for  the  pricing  of  material  not 
sold  on  the  thousand  board  foot  basis,  shall  be  that  six  dollars  ($6) 
shall  equal  twenty  per  cent  (20%). 

(4)  Alodel  overhead  cost  for  selling  and  administrative  expense 
shall  not  be  more  than  seventy-five  per  cent  (75%),  of  the  average 
for  each  approved  area. 

NOW,  THEREFORE,  pursuant  to  the  authority  vested  in  me 
by  the  aforesaid  Article  VIII,  Section  8,  of  the  said  Code,  and  Execu- 
tive Order  dated  December  30,  1933,  I  approve  the  aforesaid  revisions 


766 

as  hereinabove  set  forth  for  a  trial  period  of  ninety  (90)  days  from  the 
effective  date  hereof  in  order  that  I  may  have  an  opportunity  to  deter- 
mine whether  the  aforesaid  costing  formula  and  procedure  will 
effectuate  the  purposes  of  Title  I  of  the  National  Industrial  Recovery 
Act,  provided,  however,  that  during  said  ninety  (90)  day  trial  period 
and  prior  to  the  expiration  thereof  the  Code  Authority  of  the  Code  of 
Fair  Competition  for  the  Retail  Lumber,  Lumber  Products,  Buildmg 
Materials  and  Building  Specialties  Industry  shall  submit  to  me  reports 
showing  fluctuations  in  minimum  retail  prices  within  the  various 
areas  in  the  industry  or  within  such  areas  as  I  may  designate  from 
time  to  time  hereafter  on  standard  items  handled  by  dealers  in  retail 
lumber,  lumber  products,  building  materials  and  building  specialties, 
together  with  such  other  information  as  I  may  require  for  the  pur- 
poses hereinabove  stated,  and  provided  further  that  within  a  period 
of  15  days  from  this  date  this  order  may  be  stayed  by  me  if  adequate 
cause  therefor  be  shown  to  me  by  anyone,  and  provided  further  that 
public  notice  of  this  order  in  accordance  with  the  rules  and  regulations 
of  the  N.R.A.  shall  be  issued  on  the  date  hereof. 

Hugh  S.  Johnson, 

Administrator. 
Approval  recommended: 

Malcolm  Mum, 

Division  Administrator. 

Approval  recommended: 

E.  A.  Selfridge, 

Deputy  Administrator. 

January  5,  1934. 


767 


ADMINISTRATIVE  ORDER  NO.  128-3 

Temporary  Exemption  of  All  Members  From  Operation  of 
Article  XI  in  the  Cement  Industry 


ORDER  OF  THE  ADMINISTRATOR 

A  Code  of  Fair  Competition  for  the  Cement  Industry  was  Ap- 
proved by  the  President  on  November  27,  1933. 

Pursuant  to  the  authority  vested  in  me  by  and  under  the  provisions 
of  the  Executive  Order  of  July  15,  1933,  and  by  the  Executive  Order 
of  December  30,  1933,  and  numerous  complaints  having  been  made 
to  me  and  it  appearing  to  me  that  further  investigation  is  required 
with  respect  to  the  problem  of  selling  and  marketing  Portland  Cement, 
I  hereby  exempt  and  except  all  members  of  the  Cement  Industry 
from  the  operation  of  Article  XI  of  the  Code  of  Fair  Competition  for 
the  Cement  Industry  for  a  period  of  fifty  (50)  days  from  the  date  of 
this  order,  pending  such  investigation  and  hearings  as  I  may  prescribe 
and  decision  by  me  to  determine  whether  such  provisions  meet  present 
industrial  and  social  conditions  as  they  relate  to  the  Cement  Industry 
and  whether  such  provisions  effectuate  the  policy  and  provisions  of 
the  National  Industrial  Recovery  Act. 

Hugh  S.  Johnson, 

Administrator. 

January  5,  1934. 


768 


ADMINISTRATIVE  ORDER  NO.  X-2 


ADMINISTRATIVE  ORDER  CONCERNING  ESTABLISHMENT  OF 
OFFICIAL  N.R.A.  BULLETIN  BOARD   AND   USE  THEREOF 

By  Executive  Order  of  the  President  dated  December  21,  1933,  a 
copy  of  which  is  attached  hereto,  an  official  National  Recovery 
Administration  bulletin  board  has  been  established.  The  purpose 
of  this  bulletin  board  is  to  give  constructive  notice  of  hearings,  pro- 
ceedings, decisions,  et  cetera,  of  the  National  Recovery  Administra- 
tion, or  which  have  been  and/or  are  to  be  held  or  taken  or  made 
pursuant  to  the  National  Industrial  Recovery  Act. 

Room  3051  of  the  Department  of  Commerce  Building,  Washington, 
D.C.,  is  hereby  designated  as  such  official  bulletin  board  of  the 
National  Recovery  Administration. 

All  officials  and  employees  of  the  National  Recovery  Administra- 
tion, all  code  authorities  and  agencies,  and  all  trade  associations  and 
industrial  agencies  are  hereby  requested  and  instructed  to  comply 
with  the  provisions  of  this  Executive  Order  in  regard  to  all  matters 
which  should  be  or  are  sought  to  be  brought  to  the  attention  of  those 
other  than  such  parties  who  have  been  given  specific  notice  thereof. 
Execution  of  such  instructions  shall  be  accomplished  in  each  instance 
by  a  prompt  comphance  with  the  provisions  of  Section  5  of  said 
Executive  Order. 

Copies  of  this  order  shall  be  distributed  to  the  mailing  list  of  the 
National  Recovery  Administration  and  to  all  others  included  within 
the  meaning  of  the  last  sentence  of  Section  4  of  said  Executive  Order 
and  to  any  and  all  other  parties  requesting  the  same. 

Hugh  S.  Johnson, 
Administrator  Jor  Industrial  Recovery. 
January  6,  1934. 


769 


ADMINISTRATIVE  ORDER  NO.  37-3 


ORDER  OF  ADMINISTRATOR,  OVERHEAD  COSTS  FOR  BUILDERS' 
SUPPLIES  TRADE,  BASED  ON  COST  OF  MERCHANDISE 

A  Code  of  Fair  Competition  for  the  Builders'  Supplies  Trade  was 
approved  by  the  President  on  October  3,  1933. 

It  has  been  shown  to  me  that  the  Builders'  Supplies  Trade  now 
faces  a  serious  competitive  situation  in  which  price  demoralization  has 
occurred  to  such  an  extent  as  to  endanger  the  policy  and  purposes  of 
the  National  Industrial  Recovery  Act,  and  as  to  threaten  the  severe 
oppression,  or  elimination,  of  a  great  many  small  dealers  who  render 
a  useful  and  economic  service  in  normal  times. 

In  order  to  effectuate  the  policy  and  purposes  of  the  National  In- 
dustrial Recovery  Act  and  of  the  Code  of  Fair  Competition  for  the 
Builders'  Supply  Trade,  and  to  prevent  the  oppression  and  destruction 
of  those  smaller  business  men,  the  Code  Authority  of  said  Code  has 
submitted  to  me  the  following  percentages,  based  on  cost  of  merchan- 
dise, and  computed  by  the  statistical  mode  method,  pursuant  to  the 
provisions  of  Sections  (b)  and  (d)  of  Article  IX  of  the  said  Code,  as 
that  percentage  of  cost  of  merchandise  which  constitutes  overhead 
costs  based  on  the  statistical  mode: 

I.  Carload  Business: 

A.  Overhead  costs  on  builders'  suppUes  sold  in  carload  or  barge  load 
quantities,  f  .o.b.  siding  or  dock,  but  excluding  Portland  cement  or  any 
other  cement,  are  determined  to  be  twelve  and  one-half  percent  (12)^% 
of  the  cost  of  such  merchandise. 

B.  Overhead  costs  on  Portland  cement  sold  in  carload  or  barge 
load  quantities,  f.o.b.  siding  or  dock,  are  determined  to  be  seven  and 
one-half  percent  (7}2%)  of  the  cost  of  such  merchandise. 

C.  Overhead  costs  on  all  cements  other  than  Portland  cement  sold 
in  carload  or  barge  load  quantities,  f.o.b.  siding  or  dock,  are  deter- 
mined to  be  ten  percent  (10%)  of  the  cost  of  such  merchandise. 

D.  Paragraphs  (B)  and  (C)  shall  not  apply  to  sales  direct  to  the 
United  States  Government,  to  State  Governments,  or  railroads  for 
maintenance  of  way. 

II.  Sales  in  Quantities  Varying  Between  Five  (5)  Tons  and  Carload 
Quantities: 

Overhead  costs  on  quantities  varying  between  five  (5)  tons  and  ear- 
loads,  are  determined  to  be  thirty-three  and  one-third  percent  (33K%) 
of  the  cost  of  such  merchandise. 

III.  Sales  in  Quantities  of  Less  than  Five  (5)  Tons: 
Overhead  cost  on  quantities  of  less  than  five  (5)  tons  are  determined 

to  be  sixty-six  and  two-thirds  percent  (66/3%)  of  the  cost  of  such 
merchandise. 

NOW,  THEREFORE,  Pursuant  to  the  authority  vested  in  me  by 
the  aforesaid  Article  IX,  Section  (d)  of  the  said  Code  and  the  Execu- 
tive Order  of  the  President  dated  December  30,  1933,  I  approve  the 


770 

percentages  of  cost  of  merchandise  hereinabove  set  forth,  for  the  de- 
termination of  overhead  costs  for  a  trial  period  of  ninety  (90)  days 
from  the  effective  date  hereof,  in  order  that  I  may  have  an  oppor- 
tmiity  to  determine  whether  the  aforesaid  percentages  will  effectuate 
the  purposes  of  Title  I  of  the  National  Industrial  Recovery  Act;  pro- 
vided, however,  that  during  said  ninety  (90)  day  trial  period  and 
prior  to  the  expiration  thereof,  the  Code  Authority  of  the  Code  of 
Fair  Competition  for  the  Builders'  Supplies  Trade  shall  submit  to  me 
reports  showing  fluctuations  in  minimum  retail  prices  within  the 
various  areas  of  the  industry,  or  witliin  such  areas  as  I  may  designate 
from  time  to  time  hereafter,  on  standard  items  handled  by  dealers 
in  builders'  supphes,  together  with  such  other  information  as  I  may 
require  for  the  purpose  hereinabove  stated,  and  provided  further  that 
within  a  period  of  fifteen  (15)  days  from  the  date  of  this  Order,  this 
Order  may  be  stayed  by  me  if  adequate  cause  therefor  be  shown  to 
me  by  any  one,  and  provided  further  that  public  notice  of  this  Order, 
in  accordance  with  the  rules  and  regulations  of  the  National  Recovery 
Administration,  shall  be  issued  on  the  date  hereof. 

Hugh  S.  Johnsox, 

Administrator. 
Approval  recommended: 
E.  A.  Selfridge, 

Depuiy  Administrator. 

January  8,  1934. 


771 


ADMINISTRATIVE  ORDER  NO.  1-32 


EMERGENCY  REQUIREMENT  AS  TO  TEMPORARY  LIMITATIOxN  OF 
HOURS  OF  MACHINE  OPERATION  IN  THE  COMBED  SALES  YARN 
GROUP  OF  THE  COTTON  TEXTILE  INDUSTRY 

Pursuant  to  the  recommendation  of  the  Cotton  Textile  Code 
Authority  under  Section  VI  of  the  Cotton  Textile  Code,  approved  by 
the  Administrator  December  1,  1933,  providing  for  procedure  for 
temporary  changes  in  the  hmitation  of  hours  of  operation  of  pro- 
ductive machinery  to  meet  particular  conditions  arising  in  particular 
groups  of  the  Industry,  it  is  required  that — 

For  a  period  of  seven  weeks,  beginning  January  15,  1934,  and 
ending  March  3,  1934,  no  spinning  spindle  in  the  Cotton  Textile 
Industry,  wherever  located,  operating  on  the  production  of  any  type 
of  combed  yarn  for  sale  as  such,  with  the  single  exception  of  spindles 
producing  yarn  for  eventual  use  in  the  manufacture  of  rubber  tires 
(all  such  spindles  comprising  the  productive  machinery  of  the  Combed 
Sales  Yarn  Group  of  the  Industry)  shall  be  operated  during  any  week 
within  such  period  in  excess  of  70%  of  the  maximum  hours  of  weeldy 
operation  other^^ise  permissible  for  such  productive  machinery  under 
Section  III  of  the  Cotton  Textile  Code  as  approved  by  the  President 
on  July  16,  1933,  provided  that  the  above  period  may  be  shortened 
by  the  Code  Authority  with  the  concurrence  of  the  Government 
representatives  thereon,  or  that  such  restriction  of  hours  of  operation 
may  likewise  be  reduced  at  any  time  during  the  period  as  changing 
conditions  may  warrant.  It  is  further  required  that,  during  the 
period  when  such  temporary  limitation  is  in  effect,  no  weaving  mill, 
carded  yarn  mill,  knitting  mill,  thread  manufacturer  or  mercerizing 
estabhshment  shall  operate  spindles  in  the  production  of  any  type  of 
combed  yarn  for  sale  as  such,  other  than  yarn  for  eventual  use  in  the 
manufacture  of  rubber  tires,  which  were  not  emploj^ed  in  spinning 
combed  yarn  for  such  sale  at  some  time  during  the  90  days  prior  to 
January  1,  1934. 

Cotton  Textile  Industry  Committee, 
Code  Authority  under  the  Code  of  Fair  Competition 

for  the  Cotton  Textile  Industry, 
By  George  A.  Sloan 

The  foregoing  requirements  are  concurred  in,  Januaiy  10,  1934. 

Hugh  S.  Johnson, 

Administrator. 
Leo.  Wolman, 
Nelson  Slater, 

Government  Representatives  on  the  Cotton  Textile  Industry 
Committee,  Code  Authority  under  the  Code  of  Fair  Com- 
petition for  the  Cotton  Textile  Industry. 


772 


ADMINISTRATIVE  ORDER  NO.  1-34 


EMERGENCY  REQUIREMENTS  AS  TO  TEMPORARY  LIMITATION 
OF  MACHINE  OPERATION  OF  THE  COMBED  THREAD  jPRODUC- 
ERS  GROUP  OF  THE  COTTON  TEXTILE  INDUSTRY  IN  RESPECT 
OF  THE  PRODUCTION  OF  COMBED  YARN 

Pursuant  to  the  recommendation  of  the  Cotton  Textile  Code  Au- 
thority under  Section  VI  of  the  Cotton  Textile  Code,  approved  by  the 
Administrator  December  1,  1933,  providing  for  procedure  for  tempo- 
rary changes  in  the  limitation  of  hours  of  operation  of  productive 
machinery  to  meet  particular  conditions  arising  in  particular  groups 
of  the  Industry,  it  is  required  that — 

For  a  period  of  seven  weeks,  beginning  January  15,  1934,  and  ending 
March  3,  1934,  no  spinning  spindle  owned  by  a  thread  producer, 
operating  on  the  production  of  combed  yarn  to  be  sold  by  such  thread 
producer  as  thread,  shall  be  operated  during  such  period  a  total  num- 
ber of  hours  in  excess  of  the  equivalent  of  75%  of  the  maximum  hours 
of  operation  which  would  otherwise  be  permitted  by  the  Cotton  Textile 
Code,  as  approved  by  the  President  on  July  16,  1933,  for  such  a  seven- 
week  period,  provided  that  the  above  period  may  be  shortened  by  the 
Code  Authority,  with  the  concurrence  of  the  Government  representa- 
tives thereon,  or  that  such  restriction  of  hours  of  operation  may  like- 
wise be  reduced  at  any  time  during  the  period  as  changing  conditions 
may  warrant.  It  is  further  required  that,  during  the  period  that  such 
temporary  limitation  is  in  effect,  no  weaving  mill,  carded  yarn  mill, 
combed  yarn  mill,  knitting  mill  or  mercerizing  establishment  shall 
operate  spindles  in  the  production  of  any  type  of  finished  thread  to 
be  sold  direct  to  the  trade  for  sewing  purposes  which  were  not  em- 
ployed in  spinning  thread  for  such  sale  at  some  time  during  the  ninety 
days  prior  to  January  1,  1934. 

Cotton  Textile  Industry  Committee, 
Code  Authority  under  the  Code  of  Fair  Competition 

jor  the  Cotton  Textile  Industry. 
By  Geo.  A.  Sloan,  Chairman. 

The  foregoing  requirements  are  concurred  in,  Jan.  10,  1934. 
Hugh  S.  Johnson, 

Administrator. 
Leo  Wolman  by  G.  S., 
Nelson  Slater, 

Government  represenatives  on  the  Cotton  Textile  Industry  Com  ■ 
mittee,  Code  Authority  under  the  Code  of  Fair  Competition 
for  the  Cotton  Textile  Industry. 


773 


ADMINISTRATIVE  ORDER  NO.  1-33 


EMERGENCY  REQUIREMENTS  AS  TO  TEMPORARY  LIMITATION 
OF  MACHINE  OPERATION  OF  THE  MERCERIZERS  GROUP  OF 
THE  COTTON  TEXTILE  INDUSTRY  IN  RESPECT  OF  THE  PRO- 
DUCTION OF  COMBED  YARN 

Pursuant  to  the  recommendation  of  the  Cotton  Textile  Code 
Authority  under  Section  VI  of  the  Cotton  Textile  Code,  approved 
by  the  Administrator  December  1,  1933,  providing  for  procedure  for 
temporary  changes  in  the  limitation  of  hours  of  operation  of  produc- 
tive machinery  to  meet  particular  conditions  arising  in  particular 
groups  of  the  Industry,  it  is  required  that — 

For  a  period  of  seven  weeks,  beginning  January  15,  1934,  and 
ending  March  3,  1934,  no  spinning  spindle,  owned  by  a  mercerizing 
company,  operating  on  the  production  of  combed  yarn  for  further 
processing  in  its  own  mercerizing  establishment,  shall  be  operated 
during  such  period  for  a  total  number  of  hours  in  excess  of  the  equiva- 
lent of  75%  of  the  maximum  hours  of  operation  wliich  would  other- 
wise be  permitted  b}^  the  Cotton  Textile  Code  as  approved  by  the 
President  on  July  16,  1933,  for  such  a  seven-week  period,  provided 
that  tliis  period  may  be  shortened  by  the  Code  Authority  with  the 
concurrence  of  the  Government  representatives  thereon,  or  that  such 
restriction  of  hours  of  operation  may  likewise  be  reduced  at  any  time 
during  the  period  as  changing  conditions  may  warrant. 

Cotton  Textile  Industry  Committee, 
Code  Authority  under  the  Code  of  Fair  Competition 

for  the  Cotton  Textile  Industry, 
By  Geo.  A.  Sloan,  Chairman. 

The  foregoing  requirements  are  concurred  in,  January  10,  1934. 

Hugh  S.  Johnson, 

Administrator. 
Leo  Wolman  by  G.S., 
Nelson  Slater, 

Government  Representatives  on  the  Cotton  Textile  Industry 
Committee,  Code  Authority  under  the  Code  of  Fair  Com- 
petition for  the  Cotton  Textile  Industry. 


40121—34- 


774 


ADMINISTRATIVE  ORDER  NO.  145-3 

Stay,  in  Certain  Cases,  of  Provisions  of  Articles  III,  IV  and 
V  OF  Code  of  Fair  Competition  for  the  Furniture  Manufac- 
turing Industry 

A  petition  having  been  duly  filed  January  2,  1934,  by  the  Southern 
Furniture  Manufacturers'  Association  on  behalf  of  its  members,  for 
a  stay  of  the  Apphcation  of  Articles  III,  IV,  and  V  of  the  Code  of 
Fair  Competition  for  the  Furniture  Manufacturing  Industry,  approved 
December  7,  1933,  to  all  employees  or  contract  workers  engaged  in 
the  weaving  of  chair  seats  and  backs,  by  hand,  made  of  cane,  rattan 
and  other  materials,  where  the  work  is  done  in  the  homes  of  such  em- 
ployees or  contract  workers;  for  a  period  of  not  less  than  sixty  days, 
pending  the  report  of  the  Furniture  Code  Authority  to  the  Adminis- 
trator concerning  the  question  of  home  work  as  provided  in  Article 
VI,  Section  3  of  the  code,  and  hearing  thereon  and  final  determination 
of  the  matter; 

And  the  Assistant  Deputy  Administrator,  who  is  the  Administra- 
tion Representative  on  the  Code  Authority  for  the  Furniture  Manufac- 
turing Industry,  having  rendered  his  report  of  said  petition,  together 
with  his  recommendations  and  findings  witli  respect  thereto,  and  he 
having  found  that  the  provisions  of  Title  I  of  the  National  Industrial 
Recovery  Act,  approved  June  16,  1933,  will  be  furthered  by  the  grant- 
ing of  such  petition: 

NOW,  THEREFORE,  I,  Hugh  S.  Johnson,  Administrator  for 
Industrial  Recovery,  pursuant  to  the  authority  vested  in  me  under 
Title  I  of  the  National  Industrial  Recovery  Act,  approved  June  16, 
1933,  and  by  virtue  of  executive  orders  thereunder  issued  by  the 
President,  and  pursuant  to  the  provisions  of  the  Executive  Order 
dated  July  15,  1933,  authorizing  me  to  exercise  such  functions  as  are 
vested  in  the  President  by  Title  I  of  the  National  Industrial  Recovery 
Act,  with  certain  exceptions;  it  appearing  to  me  on  the  basis  of  the 
showing  made  that  Petitioners  will  be  placed  at  a  disadvantage  with 
non-assenters  to  the  Code  if  a  stay  is  not  granted,  and  that  failure  to 
grant  an  immediate  stay  will  create  such  an  uncertain  situation  that 
sales  will  be  prevented  until  after  hearing  and  final  determination, 
and  in  order  that  there  may  be  equality  of  treatment: 

The  apphcation  of  Articles  III,  IV,  and  V  of  the  Code  of  P'air  Com- 
petition for  the  Furniture  Manufacturing  Industr}^,  to  all  employees 
or  contract  workers  of  petitioners'  members  engaged  in  the  weaving 
of  chair  seats  and  backs,  by  hand,  made  of  cane,  rattan  and  other 
materials,  where  the  work  is  done  in  the  homes  of  such  employees  or 


775 

contract  workers,  is  HEREBY  STAYED,  pending  the  report  of  the 
Furniture  Code  Authority  to  me  concerning  the  question  of  home  work 
as  provided  in  Article  VI,  Section  3  of  the  Code,  and  hearing  thereon 
and  final  determination  of  the  matter  by  me. 

Hugh  S.  Johnson, 
Administrator  for  Industrial  Recovery. 
Recommended: 

Clarence  R.  Niklason, 

Assistant  Deputy  Administrator. 
Recommended : 

Barton  W.  Murray, 

Deputy  Administrator. 
Recommended: 

Malcolm  Muir, 

Division  Administrator. 

Date:  January  12,  1934. 


776 


ADMINISTRATIVE  ORDER  No.  151-5 

Temporary  Relief  from   Certain  Unfair   Competitive    Con- 
ditions IN  THE  Millinery  Industry 

It  appears  that  competitive  conditions  are  affected  by  the  pro- 
visions of  Article  IV,  Section  3  of  the  Code  of  Fair  Competition  of 
the  above  named  industry  approved  by  the  President  of  the  United 
States  on  December  15,  1933,  and  that  justice  therefore  requires  the 
relief  from  the  provisions  of  this  Section  and  from  the  conditions 
imposed  by  it  as  herein  specified. 

NOW,  THEREFORE,  1,  Hugh  S.  Johnson,  Administrator  for 
Industrial  Recovery,  on  the  unanimous  recommendation  of  the 
Milhnery  Industry  Code  Authority  pursuant  to  the  powers  and 
functions  delegated  to  me  by  the  President  of  the  United  States  and 
of  the  National  Industrial  Recovery  Act  approved  June  16,  1933, 

HEREBY  ORDER,  as  to  the  operation  of  Article  IV,  Section  3 
of  the  Code  of  Fair  Competition  of  this  Industry,  that  the  members 
of  this  Industry  be  and  they  are  hereby  granted  exception  and  ex- 
emption from  the  provisions  of  the  Section  hereinabove  mentioned 
up  to  and  including  January  13,  1934  and  thereafter  until  a  deter- 
mination of  the  issue  and  further  order  by  me.  Provided,  however, 
that  during  the  period  of  such  exception  and  exemption,  the  members 
of  this  Industry  and  the  Millinery  industry  Code  Authority  shall 
present  to  the  special  board,  appointed  by  me,  in  compliance  with 
Section  2  of  the  Executive  Order  of  the  approval  of  the  aforementioned 
Code,  such  facts  and  circumstances  as  are  necessary  to  enable  this 
board  to  determine  whether  the  scales  applying  to  a  particular  area, 
market,  or  member  of  the  Industry  should  be  stayed  or  modified 
because  of  great  and  unusual  hardship  to  such  area,  market,  or  mem- 
ber of  the  Industry  by  reason  of  the  application  of  such  scales  thereto. 

Hugh  S.  Johnson, 
Administrator  J  or  Industrial  Recovery. 

Approval  recommended  by: 

A.  D.  Whiteside, 

Division  Administrator. 

January  12,  1934. 


777 


ADMINISTRATIVE  ORDER  NO.  1-35 


CODE  OF  FAIR  COMPETITION  FOR  THE  COTTON  TEXTILE 

INDUSTRY 

Regulations  for  Registration  of  Machinery  and  Filing  of  Monthly 
Reports  in  the  Finishing,  Thread  Manufacturing  and  Yarn  Mercer- 
izing Branches  of  the  Industry 

The  Cotton  Textile  Industry  Committee,  in  accordance  with  Sec- 
tion VI  of  the  Code  of  Fair  Competition  for  the  Cotton  Textile  Indus- 
try, has  submitted  for  my  approval  the  following  recommendations: 

"1.  The  inventory  of  productive  machinery  in  place  and  under 
contract  required  by  Section  (1)  of  the  supplementary  provision  to 
the  Code  of  Fair  Competition  for  the  Cotton  Textile  Industry  relating 
to  the  registration  of  productive  machinery  and  the  installation  of 
additional  productive  macliinery,  approved  October  1,  shall  be  stated 
as  to  the  Finisliing,  Thread  Manufacturing  and  Yarn  Mercerizing 
Branches  of  the  Industry  as  of  November  13,  1933,  the  time  at  which 
such  supplementary'^  provision  became  applicable  to  those  branches  by 
amendments  to  such  Code. 

"2.  The  monthly  reports  required  to  be  filed  by  said  branches  of 
the  Industry  by  Section  (2)  of  such  supplementary  provision  shall 
cover  periods  beginning  December  1,  1933,  instead  of  October  1, 
1933." 

Pursuant  to  the  authority  vested  in  me  by  said  Section  VI  of  the 
Code  I  hereby  approve  said  recommendations  and  order  that  they 
become  effective  as  part  of  the  Code. 

This  order  shall  become  effective  ten  (10)  days  after  the  effective 
date  hereof  unless  prior  to  that  time  cause  to  the  contrary  shall  have 
been  shown  to  the  Administrator. 

Hugh  S,  Johnson, 
Administrator  for  Industrial  Recovery. 

Approval  recommended : 

Leo  Wolman. 
Nelson  Slater. 
George  Sloan. 

January  15,  1934. 


778 


ADMINISTRATIVE  ORDER  NO.  X-3 

Administrator's  Order  Prescribing  Rules  and  Regulations 
Concerning  Labels  Bearing  Emblems  or  Imsignia  of  the 
National  Recovery  Administration 

Pursuant  to  the  authority  vested  in  me  by  Executive  Orders  and 
othen\-ise,  I,  Hugh  S.  Johnson,  Administrator  for  Industrial  Recovery, 
do  hereby  prescribe  the  following  rules  and  regulations  concerning 
labels  which  bear  emblems  or  insignia  of  the  National  Recovery 
Administration  and  the  issuance  of  said  labels  by  certain  code 
authorities: 

(1)  In  industries  in  which  a  code  authority  has  been  or  shall  here- 
after be  granted  the  exclusive  right  and  authority  to  prepare,  issue 
or  furnish  or  cause  to  be  prepared,  issued,  or  furnished  to  members  of 
the  respective  industry,  labels  bearing  emblems  or  insignia  of  the 
National  Recovery  Administration,  said  code  authority  shall  not 
refuse  the  issuance  of  labels  to  an  appUcant  on  the  ground  of  non- 
comphance  unless  said  code  authority  is,  at  the  time  of  the  refusal, 
prepared  to  certif}^  to  the  National  Recover}'  Administration  a  prima 
facie  case  of  non-comphance  \\'ith  the  code  or  with  valid  rules  and 
regulations  of  the  code  authority  by  the  applicant. 

(2)  In  the  event  said  code  authority  so  refuses  the  issuance  of  said 
labels,  a  complete  file  showing  the  alleged  non-compliance  by  the 
applicant  shall  be  certified  not  later  than  the  day  following  said 
refusal  to  the  National  Recovery  Administration  for  action  by  the 
National  Comphance  Director. 

(3)  All  other  refusals  of  the  issuance  of  labels  shall  immediately 
be  certified  to  the  National  Recovery  Administration  with  a  complete 
file  showing  the  grounds  for  said  refusal. 

(4)  This  order  shall  be  efl^ective  today. 

Hugh  S.  Johnson, 
Administrator  for  Industrial  Recovery. 
Approval  recommended: 

A.  D.  Whiteside, 

Divisional  Administrator. 

January  17,  1934. 


779 


ADMINISTRATIVE   ORDER   NO.   60-16 


CODE  OF  FAIR  COMPETITION  FOR  THE  RETAIL  TRADE 

ORDER    XO.    60-16 

Exception  to  Provisions  of  Article  V,  Sections  4(d)  and  6  for  Purpose  of 

Taking  Inventory 

Pursuant  to  Article  X,  Section  6,  of  the  Code  of  Fair  Competition 
for  the  Retail  Trade,  approved  by  the  President  October  21,  1933,  and 
upon  the  recommendation  of  the  National  Retail  Code  Authority 
made  after  consideration  of  the  requests  submitted  by  the  Controllers ' 
Congress  of  the  National  Retail  Dry  Goods  Association  and  by 
numerous  individual  retailers ;  and  upon  finding  that  certain  provisions 
of  said  Code  impose  an  undue  hardship  upon  certain  retailers,  I  hereby 
grant  the  following  exception  to  the  provisions  of  Article  V,  Sections 
4(d)  and  6  of  said  Code: 

AR  retailers  governed  by  the  Code  of  Fair  Competition  for  the 
Retail  Trade  are  hereby  permitted,  for  the  purpose  of  taking  a  Jan- 
uary or  February  1934  inventory  only,  to  work  such  employees  as  are 
especially  skilled,  any  number  of  hours  on  any  days  in  the  week  or 
weeks  selected  as  peak-period-weeks  under  said  Article  V  Section  4(d), 
without  regard  to  the  consecutive  hour  provisions  of  said  Article  V, 
Section  6;  provided,  however, 

(1)  That  the  maximum  weekly  employee  hours  permitted  for  such 
peak-period-weeks  shall  not  be  exceeded;  and 

(2)  That  time  and  one-half  shall  be  paid  for  any  hours  worked  in 
excess  of  the  maximum  daily  hours  permitted  in  such  peak-period- 
weeks. 

Tliis  order  shall  become  effective  Friday,  January  19,  1934  at  noon 
unless  cause  to  the  contrary  shall  before  that  time  be  shown  to  the 
Administrator  for  Industrial  Recovery,  Department  of  Commerce 
Building,  Washington,  D.  C. 

Hugh  S.  Johnson, 
Administrator  for  Industricd  Recovery. 

Approval  recommended: 

A.  D.  Whiteside,  by:  H.  B.  Ludlum,  Jr., 

Divisional  Administrator.  Deputy  Administrator. 

Dated:  Jan.   18,  1934. 


780 


ADMINISTRATIVE  ORDER  NO.  128-4 


CODE  OF  FAIR  COMPETITION  FOR  THE  CEMENT  INDUSTRY 

ORDER    NO.    128-4 

Exemption   and   Exception   of   Members   of  the   Cement   Industry  from 

Certain  Provisions  op  Article  XI 

A  Code  of  Fair  Competition  for  the  Cement  Industry  was  approved 
by  the  President  on  November  27,  1933. 

Applications  having  been  duly  made  by  interested  parties  for  an 
exception  to,  exemption  from  and  modification  of  the  provisions  of 
Article  XI  of  the  said  Code,  hearings  having  been  held  thereon  on  the 
15th  and  16th  days  of  January,  1934,  the  Deputy  Administrator 
having  rendered  his  report  and  recommendations  thereon,  which 
report  and  recommendations  are  hereby  adopted  and  approved,  and 
it  appearing  to  me  that  conditions  and  circumstances  indicate  that 
Sections  1,2,  3,  5,  6,  7,  8  and  9  of  the  said  Article  XI  require  modifica- 
tion in  order  to  effectuate  the  policy  and  provisions  of  Title  I  of  the 
National  Industrial  Recovery  Act; 

NOW,  THEREFORE,  I,  Hugh  S.  Johnson,  pursuant  to  the  author- 
ity vested  in  me  bj'^  the  provisions  of  Article  XI  of  the  said  Code,  and 
by  the  Executive  Orders  dated  July  15,  1933,  and  December  30,  1933, 
and  otherwise,  hereby  exempt  and  except  aU  members  of  the  Cement 
Industry  from  the  operation  of  the  aforesaid  Sections  of  Article  XI 
of  the  said  Code  until  such  time  as  the  Code  Authority  for  the  Cement 
Industry  submits  for  my  approval  modification  of  the  aforesaid 
Sections  and  until  such  time  as  such  modifications,  after  due  notice 
and  hearing,  have  been  approved  by  me. 

Hugh  S.  Johnson, 
Administrator  for  Industrial  Recovery. 

Exemption  and  exception  recommended: 
W.  A.  Harriman, 

Division  Administrator. 

Barton  W.  Murray, 

Deputy  Administrator. 

January  23,  1934. 


781 


ADMINISTRATIVE  ORDER  NO.  1-40 


EMERGENCY  REQUIREMENT  AS  TO  FURTHER  LIMITATION  OF 
HOURS  OF  PRINTING  MACHINE  OPERATION  IN  THE  FINISH- 
ING BRANCH  OF  THE  COTTON  TEXTILE  INDUSTRY 

Pursuant  to  the  recommendation  of  the  Cotton  Textile  Code 
Authority  under  Section  VI  of  the  Cotton  Textile  Code  approved 
by  the  Administrator  December  1,  1933  providing  for  temporary 
changes  in  the  Umitation  of  hours  of  operation  of  productive  ma- 
chinery to  meet  particular  conditions  arising  in  particular  groups  of 
the  Industry: 

It  is  required  that,  for  the  month  of  February,  printing  machinery 
shall  not  operate  for  more  than  75%  of  the  hours  otherwise  permitted 
by  the  Cotton  Textile  Code;  provided  that  such  period  may  be 
shortened  by  the  Code  Authority  with  the  concurrence  of  the  Gov- 
ernment representatives  thereon,  or  that  such  restrictions  of  hours 
of  operation  may  likewise  be  reduced  at  any  time  during  the  period 
as  changing  conditions  may  warrant. 

The  Cotton  Textilie  Industry  Committee, 
Code  Authority  under  the  Code  of  Fair  Competition 

for  the  Cotton  Textile  Industry. 
By  Geo.  A.  Sloan,  Chairman. 

The  foregoing  requirement  is  concurred  in  January  23,  1934. 

Hugh  S.  Johnson, 

Leo  Wolman, 

H.  N.  Slater,  by  G.S., 

Government  Representatives  on  the  Cotton  Textile  Industry 
Committee,  Code  Authority  under  the  Code  oj  Fair  Com- 
petition for  the  Cotton  Textile  Industry. 


782 


ADMINISTRATIVE  ORDER  NO.  X-4 

Order  Granting  Limited  Exemption  from  Provisions  of  Codes 
OF  Fair  Competition  in  Connection  with  Sales  to  Hospitals 

An  application  having  been  duly  made  on  behalf  of  hospitals  of 
the  United  States  which  are  supported  by  public  subscription  or 
endowment  and  not  operated  for  profit,  requesting  that  an  exemption 
be  granted  to  those  members  of  industries  subject  to  Codes  of  Fair 
Competition  approved  under  Title  I  of  the  National  Industrial 
Recovery  Act,  who  sell  or  may  sell  supplies  or  materials  to  such  insti- 
tutions, from  provisions  of  such  Codes  governing  sales,  in  order  that 
sales  of  supplies  and  materials  to  such  institutions  may  be  made  at 
such  prices  and  upon  such  terms  and  conditions  as  may  be  mutually 
agreed  upon  by  the  parties  thereto,  and;  it  appearing  to  me  that  such 
an  exemption  is  in  furtherance  of  the  public  interest  and  will  tend 
to  effectuate  the  policy  of  said  Title  of  said  Act. 

Pursuant  to  authority  delegated  to  me  by  Executive  Orders  of  the 
President,  including  Executive  Order  No.  6543-A,  dated  December 
30,  1933,  it  is  hereby  ordered  that  those  members  of  industries  subject 
to  Codes  of  Fair  Competition  who  sell  or  may  sell  supplies  or  materials 
to  hospitals  of  the  United  States  which  are  supported  by  pubhc  sub- 
scription or  endowment,  and  not  operated  for  profit,  within  the  limi- 
tations hereinafter  provided,  be  and  they  are  hereby  exempted  from 
compliance  with  provisions  of  such  Codes  governing  sales  provided, 
however,  that  the  exemption  hereby  granted  shall  be  limited  to  and 
operative  only  in  connection  with  such  sales  made  by  such  members 
to  such  institutions ;  that  notliing  in  tliis  Order  contained  shall  relieve 
any  such  member  at  any  time  from  the  duty  of  complying  with  all 
other  provisions  of  such  Codes ;  and  that  tliis  Order  shall  not  become 
effective  for  a  period  of  ten  (10)  days  in  order  that  consideration  may 
be  given  to  the  objections,  if  any,  of  interested  parties  thereto.  At 
the  expiration  of  such  period  this  Order  shall  be  come  effective  unless 
I,  by  my  further  Order,  otherwise  determine. 

Hugh  S.  Johnson, 
Administrator  Jor  Industrial  Recovery. 

Approval  recommended: 

A.  D.  Whiteside, 

Division  Administrator. 

Washington,  D.C. 

January  23,  1934. 


783 


ADMINISTRATIVE  ORDER  NO.  1-42 


MODIFICATION  OF  EMERGENCY  REQUIREMENT  AS  TO  LIMITA- 
TION OF  HOURS  OF  MACHINE  OPERATION  IN  THE  CARDED 
YARN  GROUP  OF  THE  COTTON  TEXTILE  INDUSTRY 

Pursuant  to  the  recommendation  of  the  Cotton  Textile  Code  Au- 
thority under  Section  VI  of  the  Cotton  Textile  Code,  approved  hy  the 
Administrator  December  1.  1933,  providing  for  procedure  for  tempo- 
rary changes  in  the  limitation  of  hours  of  operation  of  productive 
machinery  to  meet  particular  conditions  arising  in  particular  groups 
of  the  Industry,  the  emergency  requirement  as  to  limitation  of  hours 
of  macliine  operation  in  the  Carded  Yarn  Group  of  the  Cotton  Textile 
Industry,  dated  December  18,  1933,  is  hereby  modified,  such  modifi- 
cation to  become  effective  January  29,  1934,  and  it  is  required  that:' 

For  a  period  of  four  weeks,  beginning  January  29,  1934,  and  ending 
February  24,  1934,  spinning  spindles  in  the  Cotton  Textile  Industry, 
wherever  located,  operating  on  the  production  of  any  type  of  carded 
yarn  for  sale  as  such,  with  the  single  exception  of  spindles  producing 
yarn  for  eventual  use  in  the  manufacture  of  rubber  tires  (all  such 
spindles  comprising  the  productive  machinery  of  the  Carded  Yarn 
Group  of  the  Industry),  shall  not  be  operated  in  excess  of  sixty  hours 
each  in  any  week  during  such  periods;  provided  that  the  above  period 
may  be  shortened  or  such  restriction  of  hours  of  operation  may  be 
reduced  bj'  the  Code  Authority  Avith  the  concurrence  of  the  Govern- 
ment representatives  thereon,  at  any  time  during  the  period  as  chang- 
ing conditions  may  w^arrant.  It  is  further  required  that,  during  the 
period  when  such  temporary  limitation  is  in  force,  no  weaving  mill, 
combed  yarn  mill  or  knitting  mill,  shall  operate  spindles  in  the  pro- 
duction of  any  t3^pe  of  carded  yarn  for  sale  as  such  which  were  ndt 
employed  in  spinning  carded  yarn  for  such  sale  at  some  time  during 
the  ninety  days  prior  to  December  1,  1933. 

Until  January  29,  1934,  the  date  that  the  foregoing  requirement 
shall  be  effective,  the  emergency  requirement  as  to  limitation  of  hours 
of  machine  operation  in  the  Carded  Yarn  Group  of  the  Cotton  Tex- 
tile Industry,  dated  December  18,  1933,  and  effective  January  1,  1934, 
shall  continue  in  full  force  and  effect. 

The  Cotton  Textile  Industry  Committee, 
Code  Authority  under  the  Code  of  Fair  Competition 

for  the  Cotton  Textile  Industry. 
By  Geo.  A.  Sloan,  Chairman. 

The  foregoing  requirement  is  concurred  in,  January  23,  1934. 
Hugh  S.  Johnson, 
Leo  Wolman, 
H.  N.  Slater,  by  G.  S. 

Government  Representatives  on  the  Cotton  Textile  Industry 
Committee,  Code  Authority  under  the  Code  of  Fair 
Competition  for  the  Cotton  Textile  Industry. 


784 


ADMINISTRATIVE  ORDER  NO.  1-41 


EMERGENCY  REQUIREMENT  AS  TO  TEMPORARY  LIMITATION  OF 
HOURS  OF  MACHINE  OPERATION  IN  THE  WIDE  BED  SHEETING 
GROUP  OF  THE  COTTON  TEXTILE  INDUSTRY 

Pursuant  to  the  recommendation  of  the  Cotton  Textile  Code 
Authority  under  Section  VI  of  the  Cotton  Textile  Code,  approved  by 
the  Administrator  December  1,  1933,  providing  for  procedure  for  tem- 
porary changes  in  the  limitation  of  hours  of  operation  of  productive 
machinery  to  meet  particular  conditions  arising  in  particular  groups 
of  the  Industry,  it  is  required  that — 

For  a  period  of  twelve  weeks,  beginning  January  29,  1934,  and 
ending  April  21, 1934,  no  mill  in  the  Cotton  Textile  Industry,  wherever 
located,  shall  operate  looms  forty-five  inches  or  wider  for  the  pro- 
duction of  wide  sheetings  for  immediate  or  ultimate  use  for  bed 
sheets  or  pillow  cases  a  total  number  of  loom  hours  in  excess  of  75% 
of  the  total  number  of  loom  hours  otherwise  permissible  for  such 
productive  machinery  under  Section  III  of  the  Cotton  Textile  Code 
as  approved  by  the  President  on  July  16,  1933,  provided  that  the 
above  period  may  be  shortened  or  that  such  restriction  of  hours  of 
operation  may  be  reduced  by  the  Code  Authority  with  the  concur- 
rence of  the  Government  representative  thereon,  at  any  time  during 
the  period  as  changing  conditions  may  warrant.  It  is  further  required 
that  no  mill  which  has  not,  for  a  period  of  ninety  days  prior  to  January 
5,  1934,  operated  looms  forty-five  inches  or  wider  for  the  production 
of  wide  sheetings  for  immediate  or  ultimate  use  for  bed  sheets  or 
pillow  cases,  shall  engage  in  such  operations  and  such  production 
during  the  aforementioned  period  of  twelve  weeks,  beginning  January 
29,  1934  and  ending  April  21,  1934. 

The  Cotton  Textile  Industry  Committee, 
Code  Authority  under  the  Code  of  Fair  Competition  for 

the  Cotton  Textile  Industry. 
By  Geo.  A.  Sloan,  Chairman. 

The  foregoing  requirement  is  concurred  in,  January  23,  1934. 

Hugh  S.  Johnson, 

Administrator. 
Leo  Wolman, 
H.  Nelson  Slater,  G.S., 

Government  Eejyresentatives  on  the  Cotton  Textile  Industry 
Committee,  Code  Authority  under  the  Code  of  Fair  Com- 
yetition  for  the  Cotton  Textile  Industry. 


785 


ADMINISTRATIVE  ORDER  NO.  118-15 

Temporary  Relief  from  Certain  Unfair  Competitive  Condi- 
tions IN  THE  Cotton  Garment  Industry — No.  118-15 

It  appears  that  competitive  conditions  are  affected  by  the  pro- 
visions of  Article  XI,  Section  (b)  of  the  Code  of  Fair  Competition  for 
the  above  named  Industry  approved  by  the  President  of  the  United 
States  on  November  17,  1933,  and  that  justice  therefrom  requires 
relief  from  the  provisions  of  this  Section  and  from  the  conditions 
imposed  bv  it  as  herein  specified. 

NOW,  THEREFORE,  I,  Hugh  S.  Johnson,  Administrator  for 
Industrial  Recovery,  on  the  unanimous  recommendation  of  the  Cotton 
Garment  Code  Authority  and  pursuant  to  the  powers  and  functions 
delegated  to  me  by  the  President  of  the  United  States  under  the 
National  Industrial  Recoverv  Act  approved  June  16,  1933, 

HEREBY  ORDER  that^as  to  the  operations  of  Section  (b)  of 
Article  XI  of  the  Code  of  Fair  Competition  for  this  Industry,  the 
members  of  this  Industry  be  and  they  are  hereby  granted  exception 
and  exemption  from  the  provisions  of  the  Section  hereinabove  men- 
tioned up  to  and  including  February  1,  1934.  Provided,  however, 
that  during  the  period  of  such  exception  and  exemption,  the  members 
of  this  Industry  shall  make  formal  application  to  the  Cotton  Garment 
Code  Authority  for  proper  classification,  and,  further,  it  is  hereby 
ordered  that  the  Cotton  Garment  Code  Authority  shall  investigate 
and  present  to  the  Administrator  all  facts  necessary  to  properly  inter- 
pret and  define  the  above  mentioned  Section. 

Hugh  S.  Johnson, 

Administrator. 
Approval  recommended: 

A.  D.  Whiteside, 

Division  Administrator. 
By  H.  B.  Ludlum,  Jr. 

Washington,  D.C. 

January  27,  1934- 


786 


ADMINISTRATIVE  ORDER  NO.  1-45 


EMERGENCY  REQUIREMENTS  AS  TO  FURTHER  LIMITATIONS  OF 
MACHINERY  OPERATION  IN  THE  FINE  GOODS  GROUP  OF  THE 
COTTON  TEXTILE  INDUSTRY 

Pursuant  to  the  recommendation  of  the  Cotton  Textile  Code 
Authority  under  Section  VI  of  the  Cotton  Textile  Code,  approved  by 
the  Administrator  December  1,  1933,  providing  for  procedure  for 
temporary  changes  in  the  limitation  of  hours  of  operation  of  produc- 
tive machinery  to  meet  particular  conditions  arising  in  particular 
Groups  of  the  Industry — 

It  is  required  that  all  Fine  Goods  mills  shall  suspend  operations  on 
all  looms  on  Fine  Cotton  Goods  for  three  days  in  February  and  three 
days  in  March,  such  days  to  be  interpreted  as  full  working  days  of 
not  less  than  a  single  shift  of  eight  hours,  if  any  mill  is  operating  on  a 
single-shift  basis,  and  not  less  than  two  shifts  of  a  total  of  sixteen 
hours,  if  on  a  two-shift  basis,  and  the  time  so  lost  shall  not  be  made 
up  by  any  method ;  that  300  looms  in  each  mill  are  exempted  from  this 
requirement  and  that  a  legal  holiday  may  be  included  as  a  working 
day  for  the  purpose  of  this  requirement. 

The  mills  to  which  the  foregoing  requirement  applies  are  those 
which,  as  a  rule,  have  been  known  to  the  Cotton-Textile  Institute  as 
Fine  Goods  mills;  it  shall  also  apply  to  all  fabrics  made  ^\dth  warps 
finer  than  32 's  and/or  filUngs  finer  than  43 's. 

Cotton  Textile  Industry  Committee, 
Code  Authority  under  the  Code  of  Fair  Competition 

Jor  the  Cotton  Textile  Industry, 
By  Geo.  A.  Sloan,  Chairman. 

The  foregoing  requirements  are  concurred  in  Jan.  29, 1934. 

Hugh  S.  Johnson, 

Administrator. 
Leo  Wolman, 
H.  N.  Slater,  G.  S., 

Government  representatives  on  the  Cotton  Textile  Industry 
Committee,  Code  Authority  under  the  Code  of  Fair  Com- 
petition jor  the  Cotton  Textile  Industry. 


INDEX 


INDEX 


Code 
No. 


Industry 


189 
155 


240 

65 

55 

111 

137 


112 


237 


Administration: 

Appointment  of  Administrator  as  member  of 

each  Code  Authority 

Appointment  of  Hugh  S.  Johnson,  Admin- 
istrator  

Authority  granted  to  Administrator  to  stay 
application  of  Codes  if  petition  is  made  with- 
in 10  days  after  effective  date 

Authorization  of  Administrator  to  Appoint 
Personnel,  Fix  Compensations,  and  Conduct 

Hearings 

Authorizing  Administrator  to  modify  agree- 
ments entered  into  or  approved  by  the  Pres- 
ident under  Title  I  of  the  National  Industrial 

Recovery  Act 

Delegation  of  certain  functions  and  powers  to 

Secretary  of  Agriculture 

Establishment  and  use  of  Official  N.R.A.  Bul- 
letin Board 

Government   contractors   must   comply   with 

approved  Codes  of  Fair  Competition 

Granting  limited  exemption  from  provisions  of 
Codes  of  Fair   Competition  in  connection 

with  sales  to  Hospitals 

Rules  and  regulations  concerning  labels  bear- 
ing Emblems  or  Insignia  of  the  N.R.A 

Administration  of  the  Petroleum  Industry  given  to 

Secretary  of  the  Interior 

Abrasives,  Coated 

Acetylene,  Oxy 

Act,  Providing  for  notice  of  proceedings  and  matter 
in  the  administration  of  the  National  Industrial 

Recovery 

Administration,  Providing  for  notice  of  proceedings 
and  matters  in  the — of  the  National  Industrial 

Recovery  Act 

Administrative  approval  of  Industrial  Sand  Divi- 
sion of  the  Crushed  Stone,  Sand  and  Gravel,  and 

Slag  Industries 

Administrator,  Authorization  of — to  appoint  per- 
sonnel, fix  compensations  and  conduct  hearings^- . 
Administrator,   Delegating  further  functions  and 

powers  to  the — for  Industrial  Recovery 

Advertising  Display  Installation 

Advertising  Specialty  Manufacturing 

Air,  Compressed 

Air  Transport 

Air,  Warm-Furnace  Manufacturing 

All-Cotton  Clothing  Linings  Division — See  (Cotton 
Textile  Supplement,  No.  1). 

All-metal  Insect  Screen 

Allocation  of  states  to  the  southern  division  under 

the  Cotton  Garment  Industry 

Alloy  Casting 

Aluminum  Permanent  Mold  Castings  Supplement 
Ambulance,  Funeral  Vehicle  and   (Supplement  to 
Automobile  Mfg.) 


Volume 


9-29-33 
6-16-33 

7-15-33 
7-15-33 

11-23-33 

6-26-33 

1-6-34 

8-10-33 

1-23-34 

1-17-34 

8-29-33 
12-30-33 
12-15-33 

12-21-33 

12-21-33 

12-27-33 

7-15-33 

12-30-33 
1-30-34 
10-31-33 
10-11-33 
11-14-33 
11-27-33 

11-14-33 

! 

12-30-33  i 

1-30-34  ' 

12-18-33  i 

11-8-33  I 


I 
I 

I 

V 

III 

I 

V 

I 

V 
V 

I 

IV 
IV 

IV 

IV 

IV 

V 

IV 
V 

II 

I 

III 

III 

III 

IV 

V 

IV 

II 


(787) 


40121—34- 


-10 


788 


Industry- 


Amendments: 

Automobile  Manufacturing,  No.  1 

Automobile  Manufacturing,  No.  2 

Bankers,  No.  1 

Canning  and  Packing  Machinery,  No.  1 

Cast  Iron  Soil  Pipe,  No.  1 

Cotton  Garment,  No.  1 

Cotton  Textile,  No.  1 

Cotton  Textile,  No.  2 

Farm  Equipment,  No.  1 

Gasoline  Pump  Manufacturing,  No.  1 

Lace  Manufacturing,  No.  1 

Lumber  and  Timber  Products,  Nos.  1  &  2 

Lumber  and  Timber  Products,  Nos.  3  &  4 

Men's  Clothing,  No.  1 

Men's  Clothing,  No.  2 

Men's  Garter,  Suspender  and  Belt  Manufac- 
turing, No.  1 

Oil  Burner,  No.  1 

Plumbing  Fixtures,  No.  1 

Retail    Lumber,     Lumber     Products,     Build- 
ing   Materials    and     Building    Specialties, 

No.  1 

Shipbuilding  and  Ship-repairing,  No.  1 

Textile  Bag,  No.  1 

Wall  Paper  Manufacturing,  No.  1 

Wool  Textile,  No.  1 

Blankets  Division 

Carded  Men's  Wear  Division 

Carded  Spinners  Division 

Carded  Women's  Wear  Division 

Combers  Division 

Cotton  Warps  Division 

Knitted  Woolen  goods  division 

Piece  Goods  Selling  Division 

Reworked  Wool  Divisioii 

Topmakers  Division 

Wool  Scourers  &  Carbonizers  Division 

Worsted  Men's  Wear  Division 

Worsted     Spinners,     Bradford     System, 

Division 

Worsted  Spinners,  French  System,  Divi- 
sion  

Worsted  Women's  Wear  Division 

American  Glassware 

Automatic  Glassware  Division 

Automatic  Tumbler  Glassware  Division 

Automobile  Glassware  Division 

Blown  Glassware  Division 

Blown  Table  Glassware  Division 

Glassware  Cutting  and  Decorating  Division... 

Illuminating  Glassware  Division 

Lamp  Chimneys  and  Lantern  Globes  Division 

Miscellaneous  Glassware  Division 

Pressed  Glassware  Division 

Scientific  Glassware  Division 

Technical  and  Industrial  Glassware  Division.. 

American  Match 

American  Petroleum  Equipment 

Anti-Friction  Bearing 

Appliance,  Cooking  and  Heating^ — Manufacturing. 
Appliance,  Railway  Safety 


12-18-33 

1-8-34 

1-22-34 

1-27-34 

12-18-33 

12-18-33 

11-8-33 

12-27-33 

12-21-33 

12-21-33 

12-23-33 

10-9-33 

12-7-33 

12-15-33 

12-18-33 

1-27-34 

10-  3-33 

1-31-34 


1-12-34 
10-10-33 
12-23-33 
12-30-33 
1-23-34 
1-23-34 
1-23-34 
1-23-34 
1-23-34 
1-23-34 
1-23-34 
1-23-34 
1-23-34 
1-23-34 
1-23-34 
1-23-34 
1-23-34 

1-23-34 

1-23-34 
1-23-34 
1-16-34 
1-16-34 
1-16-34 
1-16-34 
1-16-34 
1-16-34 
1-16-34 
1-16-34 
1-16-34 
1-16-34 
1-16-34 
1-16-34 
1-16-34 

12-30-33 
11-2-33 

11-27-33 
1-30-34 
1-12-34 


Volume 


IV 

V 

V 

V 

IV 

IV 

II 

IV 
IV 
IV 
IV 

I 

IV 
IV 
IV 

V 

I 

V 


V 

I 

IV 
IV 
V 
V 
V 
V 
V 
V 
V 
V 
V 
V 
V 
V 
V 


V 
V 
V 
V 
V 
V 
V 
V 
V 
V 
V 
V 
V 
V 
V 
IV 

II 
III 

V 
V 


789 


Industry 


fix 


Appointment: 

Central  Statistical  Board 

Hugh  S.  Johnson  as  Administrator 

Hugh    S.    Johnson   to   appoint   personnel, 

compensations,  and  conduct  hearings 

Hugh  S.  Johnson  to  serve  temporarily  as  mem- 
ber of  each  Code  Authority 

Arches,  Suspended  Walls  and 

Artificial  Flower  and  Feather 

Denial     of     Application     for     exemption     by 

Kaplan  Bros 

Asbestos 

Ashes,  Cinders,  — ,  and  Scavenger  Trade 

Asphalt  and  Mastic  Tile 

Asphalt  Shingle  and  Roofing  Manufacturing 

Assembling,  Porcelain  Breakfast  Furniture 

Auto,    Fabric — Equipment    Division — See    (Light 

Sewng  Industry  Except  Garments). 
Automatic     Glassware    Division— See     (American 
Glassware) . 

Automatic  Sprinkler 

Automatic     Tumbler     Glassware      Division — See 

(American  Glassware). 
Automobile  Fabrics,  Proofing  and  Backing  Division 
Automobile    Glassware    Division — See    (American 
Glassware) . 

Automobile  Manufacturing 

Amendment,  No.  1 

Amendment,  No.  2 

Supplement  No.    1 — Funeral  and  Ambulance 

Subdivisions 

Automotive  Parts  and  Equipment  Manufacturing. 

Automotive,  Wholesale — Trade 

Auxiliary,  Marine — Machinery 

Bag,  Banana  and  Dry  Cleaner  or  Garment  Deliv- 
ery^— Division^ — See  (Paper  Bag  Manufacturing). 
Bag,    Coffee — Division — See    (Paper    Bag    Manu- 
facturing) . 
Bag,  Glassin( 
f  acturing) . 
Bag,  Grocery 
f  acturing) . 

Bag,  Millinery  and  Notion — Division — See  (Paper 
Bag  Manufacturing). 

Bag,  Paper —  Manufacturing 

Bag,  Shopping — Division^ — See  (Paper  Bag  Manu- 
facturing) . 
Bag,    Wholly   or   Semi-   Hand    Made — Division — 

See  (Paper  Bag  Manufacturing). 
Bag,    Window    Face — Division — See    (Paper    Bag 
Manufacturing) . 

Bag,  Textile 

Ball  Clay  Production 

Banana  and  Dry  Cleaner  or  Garment  Delivery 
Bag  Division — See  (Paper  Bag  Manufactur- 
ing). 

Bankers 

Amendment,  No.  1 

Stay  of  effective  date  of  Article  VIII 

Bankers,  Investment 

Banks,  Mutual  Savings 

Barber  Supplies,  Beauty  and — Division — See 
(Wholesaling  or  Distributing  Trade). 


Date 


Volume 


-Division — See  (Paper  Bag  Manu- 
-Division — See  (Paper  Bag  Manu- 


7-27-33 
6-16-33 

7-15-33 

9-29-33 

12-18-33 

9-18-33 

11-4-33 
11-1-33 
12-30-33 
12-7-33 
11-6-33 
1-30-34 


10-  9-33 


12-15-33 


8-26-33 

12-18-33 

1-8-34 

11-8-33 

11-8-33 

12-18-33 

1-30-34 


1-26-34 


9-18-33 
1-16-34 


10-3-33 

1-22-34 

12-11-33 

11-27-33 

10-9-33 


I 

IV 

I 

II 
II 
IV 
III 
II 
V 


IV 


I 

IV 

V 

II 
II 

IV 
V 


I 

V 


I 

V 
IV 

III 
I 


V     461 


790 


Industry 


Basic  Refractories 

Battery,  Electric  Storage  and  Wet  Primary 

Bearing,  Anti-Friction 

Bearings,    Railway    Brass    Car    and    Locomotive 

Journal — and  Castings  Manufacturing 

Beauty  and  Barber  Supplies  Division — See  (Whole- 
saling or  Distributing  Trade). 

Bedding  Manufacturing 

Bedspreads,     Novelty     Curtain,     Draperies,     and 

IS ovelty  Pillow 

Bed,  Temporary  limitation  of  hours  of  machine 
operation  in  the  Wide^ — Sheeting  Group  of  the — 
See  (Cotton  Textile  Industry). 

Beet  Sugar  (Labor  Provisions) 

Belt,  Men's  Garter,  Suspender  and — Manufactur- 
ing— See  (Men's  Garter,  Suspender  and  Belt 
Manufacturing). 

Belt,  Women's 

Bituminous  Coal 

Revision 

Blackboard  Slate  Division — See  (Slate). 
Blankets    Division — See    (Wool    Textile    Amend- 
ment, No.  1). 

Blast  Furnace  Castings  Supplement 

Blind ,  Venetian 

Block,  End  Grain  Strip  Wood 

Block,  Metal  Hat  Die  and  Wood  Hat 

Blouse  and  Skirt  Manufacturing 

Blower,  Fan  and 

Blown  Glassware  Division— See  (American  Glass- 
ware.) 
Blown  Table  Glassware  Division — See  (American 
Glassware) . 

Board,  Central  Statistical — Appointment  of 

Board,  Cork  Bulletin  and  Display — Manufacturers 
Division — See  (Cork). 

Boiler  Manufacturing 

Boiler,  Steel  Tubular  and  Fire  Box 

Bonding,  High  Temperature — Mortars  Division.  _ 

Boot  and  Shoe  Manufacturing 

Box,  Folding  Paper 

Box,  Set  JJp  Paper — Manufacturing 

Bradford,    Worsted   Spinners — System   Division — 

See  (Wool  Textile  Amendment,  No.  1). 
Braiding,  Knitting — and  Wire  Covering  Machine. 
Braid,  Milliner}'  and  Dress  Trimming — and  Textile 

Brass,  Copper  and — -Mill  Products 

Brassiere,  Corset  and 

Denial  of  application  for  exemption  by  Gem- 
Dandy  Garter  Co 

Brassiere,     Corset, — and    Allied     Trades     Fabrics 
Division — See      (Cotton     Textile     Supplement, 
No.  1). 
Brass,     Railway — Car    and    Locomotive    Journal 

Bearings  and  Castings  Manufacturing 

Brass,  Sanitary — Plumbing  Fittings  Division — 
See  (Plumbing  Fixtures). 

Breakfast  Furniture,  Porcelain — Assembling 

Broadcasting,  Radio 

Buffing  and  Polishing  Composition 

Buff  and  Polishing  Wheel 


12-18-33 

10-3-33 

11-27-33 

1-29-34 


1-23-34 
11-1-33 

10-27-33 


10-3-33 
9-18-33 
9-29-33 


12-18-33 
1-24-34 

12-30-33 
1-23-34 

12-30-33 
1-30-34 


7-27-33 


10-3-33 
10-23-33 
12-18-33 

10-3-33 
12-30-33 
12-18-33 


10-3-33 

10-31-33 

11-2-33 

8-14-33 

9-18-33 


1-29-34 


1-30-34 
11-27-33 

11-4-33 
11-14-33 


Volume 


IV 

I 

III 


V 
II 

II 


IV 
V 

IV 
V 

IV 
V 


I 
II 

IV 

I 

IV 
IV 


I 

II 
II 

I 


V 

III 
II 
II 


791 


Industrj' 


Builders  Supplies  Trade 

Temporary  approval  of  method  of  determining 

overhead  costs  for  the — Trade 

Building  Materials,  Retail  Lumber,  Lumber  Prod- 
ucts— and  Building  Specialties — See  (Retail 
Lumber,  Lumber  Products,  Building  Materials 
and  Building  Specialties). 

Building,  Savings,  —  and  Loan  Associations 

Bulletin,  Cork — and  Display  Board  Manufacturers 

Division  —  See  (Cork). 
Bulletin,     Establishments     and     use     of     Official 

N.R.A.— Board 

Burner,  Oil 

Amendment,  No.  1 

Business  Furniture,  Storage  Equipment  and  Filing 

Supply 

Bus,  Motor 

Buttons  Division — See  (Wholesaling  or  Distributing 

Trade) . 
Buttons,  Men's  Wear — Division — See  (Wholesaling 
or  Distributing  Trade). 

Can  Manufacturers 

Canning  and  Packing  Machinery 

Amendment,  No.  1 

Cap  and  Closure 

Caps,   Hats  and — Division — See   (Wholesaling  or 

Distributing  Trade). 
Carbonizers,    Wool    Scourers   and — Division — See 
(Wool  Textile  Amendment,  No.  1). 

Card  Clothing 

Carded  Men's  Wear  Division — See  (Wool  Textile 

Amendment,  No.  1). 
Carded    Spinners    Division — See     (Wool    Textile 

Amendment,  No.  1). 
Carded  Women's  Wear  Division— See  (Wool  Tex- 
tile Amendment,  No.  1). 
Carded  Yarn,  Modification  of  emergency  require- 
ment as  to  limitation  of  hours  of  machine  opera- 
tion in  the — Group  of — See  (Cotton  Textile 
Industry). 

Carpet  and  Rug  Manufacturing 

Carpet,    Covered — Padding   Division — See    (Light 

Sewing  Industry  Except  Garments). 
Car,    Railway    Brass — and    Locomotive    Journal 

Bearings  and  Castings  Manufacturing 

Case,  Watch — Manufacturing 

Castings,  Alloy 

Castings,  Railway  Brass  Car  and  Locomotive  Jour- 
nal Bearings  and — Manufacturing 

Casting,  Steel 

Castings,  Aluminum  Permanent  Mold — Supple- 
ment  

Castings,  Blast  Furnace — Supplement 

Castings,  Miscellaneous  Non-Ferrous  Sand — Sup- 
plement   

Castings,  Steel  and  Rolling  Mill — Supplement 

Cast  Iron,  Enameled — Plumbing  Fixtures  Divi- 
sion— See  (Plumbing  Fixtures). 

Cast  Iron  Pressure  Pipe 

Cast  Iron  Soil  Pipe 

Amendment,  No.  1 


Date 

10-3-33 
1-8-34 

12-21-33 


1-6-34 
9-18-33 
10-3-33 

11-4-33 
10-31-33 


12-15-33 

10-31-33 

1-27-34 

10-20-33 


1-23-34 


1-12-34 


1-29-34 

12-23-33 

1-30-34 

1-29-34 
11-2-33 

12-18-33 
12-18-33 

12-18-33 
12-18-33 


12-30-33 

9-7-33 

12-18-33 


Volume 

I 
V 

IV 


V 

I 
I 

II 
II 


IV 

II 

V 

II 


V 

IV 
V 

V 

II 

IV 

IV 

IV 
IV 


IV 

I 

IV 


792 


Industry 


Caulking  Compounds,  Waterproofing,  Dampproof- 
ing  and  Concrete  Floor  Treatments  Manufactur- 
ing  

Cement 

Exemption  of  members  from  certain  provisions 
of  Article   XI  for  the — Industry,   pending 

modification 

Temporary  stay   of   Article   XI  for  the — In- 
dustry   

Cement,  Shoe  and  Leather  Finish,  Polish,  and — 

Manufacturing 

Central  Statistical  Board,  Appointment  of 

Certification,  rule  for — of  Documents 

Chain  Hoist,  Hand — iManufacturing — See  (Fabri- 
cated Metal  Products  Manufacturing  and  Metal 
Finishing  and  Metal  Coating). 
Chain  Manufacturing — See  (Fabricated  Metal  Prod- 
ucts Manufacturing  and  Metal  Finishing  and 
Metal  Coating). 
Charcoal  and  Packaged  Fuel  Division — See  (Whole- 
saling or  Distributing  Trade). 

Chewing  Gum 

Chimneys,  Lamp — and  Lantern  Globes  Division — 

See  (American  Glassware). 
China,    Vitreous — Plumbing    Fixtures    Division — 
See  (Plumbing  Fixtures). 

Chinaware  and  Porcelain  Manufacturing 

Chromium  Plate,  Pewter — and  Miscellaneous 

Cigar  Container 

Cinders,  Ashes,  and  Scavenger  Trade 

Clay ,  Ball — Production 

Clay ,  Fire — Producers 

Clay,  Floor  and  Wall — Tile  Manufacturing 

Clay,  Structural — Products 

Clay,  Vitrified — Sewer  Pipe  Manufacturing 

Cleaner,  Banana  and  Dry — or  Garment  Delivery 
Bag  Division — See  (Paper  Bag  Manufacturing). 

Cleaning  and  Dyeing  Trade 

Cleaning,  Laundry  and  Dry — Machinery  Manu- 
facturing  

Cleansing,  Sanitary  Napkin  and — Tissue 

Closure,  Cap  and 

Cloth,  Cotton — -Glove  Manufacturing 

Cloth,  Hair — Manufacturing 

Clothiers'    Linings    Division — See   (Cotton  Textile 

Supplement,  No.  1). 
Clothing,      All-Cotto  n — ^  Linings — Division — ^See 
(Cotton  Textile  Supplement,  No.  1). 

Clothing,  Card 

Clothing,   Men's 

Cloth,  Stay  of  wage  provisions  for  the  Southern 
Section  under  the  Cotton — Glove  Manufacturing. 

Coal ,  Bituminous 

Revision 

Coat  and  Suit 

Denial  of  application  for  exemption  by  Assoc, 
Coat  and  Suit  Manufacturers  of  Portland, 

Oregon 

Denial  of  application  for  exemption  by  Con- 
necticut Garment  Manufacturers  Ass'n 


11-27-33 
11-27-33 


1-23-34 

1-5-34 

12-30-33 

7-27-33 

11-18-33 


1-30-34 


11-27-33 

III 

12-23-33 

IV 

11-27-33 

HI 

12-30-33 

IV 

1-16-34 

V 

12-18-33 

IV 

11-4-33 

11 

11-27-33 

111 

11-27-33 

HI 

11-8-33 

10-3-33 

1-12-34 

10-20-33 

12-30-33 

12-15-33 


1-23-34 
8-26-33 

12-30-33 

9-18-33 

9-29-33 

8-4-33 


10-11-33 
9-7-33 


Volume 


III 
III 


V 

V 

IV 

I 
III 


II 
I 

V 

II 

IV 
IV 


V 

I 

IV 

I 
I 
I 


793 


Industry 


the 


Coated  Abrasives 

Cock,  Gas 

Code    Authority,    Appointment   of   Administrator 
to  Serve  on  Each 

Codes  of  Fair  Competition,  Regulations 

Defining  effect  of  certain   provisions  in 

Codes  upon  cooperative  organization 

Granting  limited  exemption  from  provisions 

of — in  connection  with  sales  to  Hospitals 

Coffee  Bag  Division— See   (Paper  Bag   Manufac- 
turing) . 

Coin  Operated  Machine  Manufacturing 

Combed  Thread,  Temporary  limitation  of  machine 
operation  of  the — Producers  Group  in  respect 
of  the  production  of  Combed  Yarn — See  (Cotton 
Textile  Industry). 
Combed  Yarn,  Temporary  limitation  of  machine 
operation    of    the    Combed    Thread    Producers 
Group    in    respect   of   the    Production    of- — See 
(Cotton  Textile  Industry). 
Combed  Yarn,  Temporary  limitation  of  machine 
operation  of  the  Mercerizers  Group  in  respect 
of    the    production    of — See     (Cotton    Textile 
Industry). 
Combers    Division — See    (Wool    Textile    Amend- 
ment, No.  1). 
Comfortable     Division — See     (Light    Sewing    In- 
dustry except  Garments).  . 
Commercial  bribery  provisions  to  oe  included  in 

codes  heretofore  approved 

Commercial  Refrigerator 

Compensations,  Authorization  of  Administrator  to 

appoint  personnel,  fix — and  conduct  hearings 

Compliance    by     Government    Contractors    with 

Approved  Code  of  Fair  Competition 

Composition,  Buffing  and  Polishing 

Compositions,  Cork — and  Cork  Specialties  Manu- 
facturers Division — See  (Cork). 

Compressed  Air 

Concrete  Masonry 

Concrete  Pipe  Manufacturing 

Construction 

Construction  Machinery  Distributing  Trade 

Container,  Cigar 

Container,  Glass 

Converting,  Cotton — See  (Cotton  Textile). 

Cooking  and  Heating  Appliance  Manufacturing 

Cooperative  Organizations,  Defining  Effect  of  Pro- 
visions   

Copper  and  Brass  Mill  Products 

Cordage  and  Twine,  Modifying  Agreement  of  July 

27,  1933 -• 

Cordage    and    Twine,    temporarilv    placed    under 

Cotton  Textile 1 

Cordage,  Twine  and — Division — See  (Wholesaling 
or  Distributing  Trade). 

Cork 

Cork  Bulletin  and  Display  Board  Manufac- 
turers Division 

Cork  Composition  and  Cork  Specialties  Manu- 
facturers Division 

Cork  Floor  Tile  Manufacturers  Division 

Cork  Insulation  Manufacturers  Division 

Cork  Marine  Goods  Manufacturers  Division.  _ 
Cork  Stopper  Manufacturers  Division 


Date 


12-30-33 
10-31-33 

9-29-33 
7-15-33 

10-23-33 

1-23-34 

1-23-34 


Volume 


IV 
II 

I 
I 

II 

V 


Page 


649 
157 

732 
713 

698 

782 

435 


11-27-33 

III 

12-23-33 

IV 

7-15-33 

V 

8-10-33 

I 

11-4-33 

II 

10-11-33 

I 

11-27-33 

III 

12-30-33 

IV 

1-31-34 

V 

1-23-34 

V 

11-27-33 

III 

10-3-33 

I 

1-30-34 

V 

10-3-33 

I 

11-2-33 

II 

10-20-33 

II 

7-27-33 

I 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V  ! 

659 
441 

763 

729 
501 


653 
407 
497 
649 
369 
433 
457 

549 

699 
289 

695 

725 

45 

45 

45 
45 
45 
45 
45 


794 


Code 
No. 


187 


118 


Industry 


Corset  and  Brassiere 

Denial  of  application  for  exemption  by  Gem- 
Dandy  Garter  Co 

Corset,  Brassiere,  and  Allied  Trades  Fabrics  Divi- 
sion— See  (Cotton  Textile  Supplement,  No.  1). 
Costs,   Temporary  approval  of  method  of  deter- 
mining overhead — for — See  (Buildings  Supplies 
Trade). 
Costs,  Temporary-  modification  of  method  of  com- 
puting— for — See  (Retail  Lumber,  Lumber  Prod- 
ucts, Building  Materials  and  Building  Special- 
ties Industry). 
Cotton,  All — Clothing  Linings  Division — See  (Cot- 
ton Textile  Supplement,  No.  1). 

Cotton  Cloth  Glove  Manufacturing 

Cotton  Cloth  Glove,  Stay  of  wage  provisions  for  the 

Southern  Section  under  the — Manufacturing 

Cotton  Converting — See  (Cotton  Textile). 

Cotton  Garment 

Amendment,  No.  1 

Allocation  of  States  to  the  southern  division 

under  the — Industry 

Stay  for  the  Dress   Manufacturing  Industry 

and — Industry 

Temporary  relief  under  Article  XI,  Section  (b) 

for  the— Industry 

Cotton,   Temporary  placing  of — Thread  Industry 

under  the  Cotton  Textile 

Cotton  Textile 

Amendment,  No.  1 

Amendment,  No.  2 

Cordage  and  Twine,  temporarily  placed  under. 
Cotton  Thread  Industry,  Temporary  placing 

under 

Denial  of  application  for  exemption  by  Ala- 
bama Mills  Co I 

Denial  of  application  for  exemption  by  Crystal 

Springs  Bleachery 

Denial  of  application  for  exemption  bv  D\\ight 

Mfg ■_ 

Denial    of    application    for    exemption    from 

Cotton  Textile  Indus! ry 

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

the — Industry 

Emergency  requirement  as  to  further  limita- 
tion of  hours  of  machine  operation  in  Carded 

Yarn  Group  of  the — Industry 

Emergency  requirement  as  to  furtlier  limita- 
tion of  hours  of  printing  machine  operation 

in  the  Finishing  Branch  of  the — Industry 

Extending  termination  date  of  stay  limiting 
machine  hours  in  Cotton  Textile  Industry.. 
Extension  of  stay  limiting  ^Mn chine  Hours  in 
Cotton    Textile    Industry    as    applying    to 

rubber  tire  yarns 

Furtlier  limitation  of  hours  of  Printing  machine 
operation  in  the  Finishing  Branch  of  the — 

Industry 

Further  limitation  of  machinery  operation  in 

the  Fine  Goods  Group  of  the — Industry 

Garment    Manufacturer    temporarily    placed 
under 


Date 

8-14-33 
9-18-33 


12-30-33 

12-30-33 

11-17-33 
12-18-33 

12-30-33 

12-14-33 

1-27-34 

7-16-33 

7-9-33 

11-8-33 

12-27-33 

7-27-33 

7-16-33 
8-4-33 
8-4-33 
8-4-33 

12-4-33 

11-6-33 
12-15-33 


Volume 

I 
I 


IV 
IV 

III 

IV 

IV 

IV 

V 

I 
I 

II 

IV 

I 
I 
I 
I 
I 
III 

IV 

IV 


12-18-33 

IV 

11-27-33 

III 

11-13-33 

II 

1-23-34 

V 

1-29-34 

V 

7-26-33 

I 

795 


hours    for    the — In- 


Cotton  Textile — Continued. 
Limitation    of    machine 

dustry 

Modification  of  emergency  recjuirement  as  to 
limitation  of  hours  of  machine  operation  in 

the  Carded  Yarn  Group  of  the— Industry 

Pajama  Mfgrs.,  Temporarily  placed  under 

Rayon  Weaving  Industry,  Temporary  placing 

under 

Regulations  for  registration  of  machinery  and 
filing  of  monthly  reports  in  Finishing,  Thread 
Manufacturing      and      Yarn      Mercerizing 

Branches  of  the — Industry 

Silk  Industry,  Temporary  placing  under 

Stay  of  code  provisions  as  to  productive  ma- 
chinery operation  for  the — Industry 

Supplement,  No.  1,  for  Cotton  Converting 

All-Cotton  Clothing  Linings  Division 

Clothiers'  Linings  Division 

Corset,  Brassiere,  &  Allied   Trades   Fab- 
rics Division 

Curtain  &  Drapery  Fabrics  Division 

Interlinings  Division 

Shirtings  Division 

Wash  Goods  Division 

Temporary  limitation  of  hours  of  machine  op- 
eration in  the  Wide  Bed  Sheeting  Group  of 

the — Industry 

Temporary  limitation  of  hours  of  machine  op- 
eration in  the  Combed  Sales  Yarn  Group  of 

the — Industrj' 

Temporary  limitation  of  machine  operation  of 
the  Combed  Thread  Producers  Group  of 
the — Industry  in  respect  of  the  production 

of  Combed  Yarn 

Temporary'  limitation  of  machine  operation  of 
the  Mercerizers  Group  of  the — Industry  in 
respect  of  the  production  of  Combed  Yarn.. 
Throwing  Industry,  Temporary  placing  under __ 
Cotton  Warps  Division — See  (Wool  Textile  Amend- 
ment, No.  1). 
Covered    Carpet    Padding    Division — See    (Light 

Sewing  Industrj-  Except  Garments;. 
Covering,    Floor — Division — See    (Wholesaling    or 

Distributing  Trade). 
Cover,     Mattress — Division — See     (Light    Sewing 
Industry  except  Garments). 

Crane,  Shovel ,  Dragline  and 

Crown  Manufacturing 

Crucible,  Plumbago 

Crushed  Stone,  Sand  and  Gravel,  and  Slag 

Administrative   Approval  of  Industrial   Sand 

Division  of  the 

Crusher,  Rock — Manufacturing 

Curtailment  of  machine  hours  for  the  Silk  Textile 

Industry 

Curtain  and  Drapery  Fabrics  Division — See  (Cot- 
ton Textile  Supplement,  No.  1). 
Cutting,   Glassware — and    Decorating    Division — 
See  (American  Glassware). 

Curtain,  Nottingham  Lace 

Curtain,     Novelty — Draperies,     Bedspreads,     and 
Novelty  Pillow 


12-2-33 


1-23-34 
7-26-33 

7-14-33 


1-15-34 
7-15-33 

7-30-33 
1-24-34 
1-24^34 
1-24-34 

1-24-34 
1-24-34 
1-24-34 
1-24-34 
1-24-34 


1-23-34 


1-10-34 


1-10-34 


1-10-34 
7-14-33 


11-8-33 

11-1-33 

10-23-33 

11-10-33 

12-27-33 
11-1-33 

12-23-33 


11-1-33 
11-1-33 


IV 


V 
I 


V 
V 
V 
V 
V 


693 


783 
723 

19 


777 
20 


IV     691 

V  I  713 

V  720 

V  I  718 


719 
721 
724 
722 
723 


V      784 


771 


V      772 


V      773 
I  1     20 


II  563 

II  243 

II  67 
II  i  641 

IV  707 

II  231 

IV  705 


II     253 

II      263 


796 


Code 
No. 

Industry 

Date 

Volume 

Page 

Cycle  Jobbers  Division — See   (Wholesaling  or  Dis- 

tributing Trade). 

140 

Dampproofing,     Waterproofing — Caulking     Com- 
pounds, and  Concrete  Floor  Treatments  Manu- 

facturing   

11-27-33 

III 

497 

Decorating,    Glassware    Cutting   and — Division — 

See  (American  Glassware). 

Decorative   Fabrics,    Upholstery   and — Division — 

See  (Wholesaling  or  Distributing  Trade). 

Defining  Effect  of  certain  provisions  in  the  Codes 

of  Fair  Competition  upon  Cooperative  Organiza- 

tions   

10-23-33 

II 

698 

Definition  of  areas,  hours,  and  wages  for  the  Dress 

Manufacturing  Industry 

12-14-33 

IV 

697 

Delegating  further  functions  and  powers  to  the 

Administrator  for  Industrial  Recovery 

12-30-33 

IV 

689 

Delegation  of  certain  functions  and  powers  to  Sec- 

retary of  Agriculture 

6-26-33 

I 

712 

Delivery,  Banana  and  Dry  Cleaner  or  Garment — 

Bag  Division — See  (Paper  Bag  Manufacturing). 

Denial  of  Applications  for  Exemptions: 

Alabama  Mills  Co.  from  the  Cotton  Textile 

Industry 

8-4-33 

I 

728 

Association  Cloak  and  Suit  Manufacturers  of 

Portland,  Oreg.,  from  the  Coat  and  Suit  In- 

dustry  

10-11-33 

I 

735 

Connecticut    Garment    Manufacturers    Assn. 

from  the  Coat  and  Suit  Industry 

9-7-33 

I 

731 

Cotton     Textile     Industry     from     "Machine 

Hours"  on  tire  yarns  and  fabrics 

11-6-33 

II 

702 

Crystal   Springs   Bleachery   from  the   Cotton 

Textile  Industry 

8-4-33 

I 

726 

Dwight  Manufacturing  Co.  from  the  Cotton 

Textile  Industry 

8-4-33 

I 

727 

Gem-Dandy  Garter  Company  from  the  Corset 

and  Brassiere  Industry 

9-18-33 

I 

732 

Greensboro  Lumber  Company  I'rom  the  Lum- 

ber &  Timber  Products  Industry 

10-20-33 

II 

696 

Kaplan   Brothers  from   Artificial  Flower  and 

Feather  Industry 

11-4-33 

12-4-33 
1-22-34 
1-23-34 
1-30-34 

II 

III 

V 
V 
V 

701 

Cotton  Textile  Industry 

661 

217 

Dental  Laboratory 

283 

221 

Die,  Metal  Hat— and  Wood  Hat  Block 

347 

240 

Display,  Advertising — Installation 

601 

Display  Board,  Cork  Bulletin  and — Manufacturers 

Division — See  (Cork). 

59 

Devices,  Marking 

10-20-33 
11-17-33 

II 
III 

13 

122 

Die,  Special  Tool — and  Machine  Shop 

187 

Disapproval  of  exception  and  termination  of  stay 

under  the  code  of  fair  competition  for  the  Cotton 

Textile  Industry 

11-6-33 
11-10-33 

IV 

II 

685 

110 

Distillation,  Hardwood 

661 

223 

Distributing,   Construction   Machinery — Trade 

1-23-34 

V 

369 

176 

Distributing,  Paper — Trade 

12-23-33 

IV 

375 

201 

Distributing,  Wholesaling  or — Trade 

1-12-34 

V 

69 

61 

Distributors,    Industrial   Supplies  and    Machinery 

Trade 

10-23-33 
11-18-33 

II 
III 

47 

Documents,  prescribing  rules  for  certification  of 

656 

162 

Domestic  Freight  Forwarding 

12-18-33 

IV 

175 

171 

Door,  Rolling  Steel 

12-21-33 

IV 

297 

102 

Dragline,  Shovel — and  Crane 

11-8-33 

II 

563 

8 

Dramatic,  Legitimate  Full  Length — and  Musical 

Theatrical 

8-16-33 

I 

81 

797 


Code 
No. 


79 

212 


231 
64 


Industry 


Date 


Volume  I  Page 


Draperies,     Noveltv     Curtain — Bedspreads     and 
Novelty  PUlow 

Drapery  and  Upholster}'  Trimming 

Drapery,     Curtain     and — Fabrics     Division — See 

(Cotton  Textile  Supplement,  No.  1). 
Drapery,     Upholstery     and — Textile — See      (Up- 
holstery and  Drapery  Textile). 

Dressings,  Surgical 

Dress  Manufacturing 

Definition  of  areas,  hours  and  wages  for  the — 

Industry 

Stay  for  the — Industry  and  Cotton  Garment 

Industry 

Dress,      Millinerv     and — Trimming      Braid     and 

Textile I 

Drug,  Retail — Trade 

Drug  store.  Stay  of  minimum  wage  provisions  as  to 
outside   salesmen   and— delivery   employees  for 

the  Retail  Trade 

Dry  and  Polishing  Mop  Manufacturing 

Dry,  Banana  and — Cleaner  or  Garment  Delivery 
Bag  Division^ (See  Paper  Bag  Manufacturing). 
Dry  Cleaning,   Laundry  and — Machinery   Manu- 
facturing   

Dry    Goods    Division— See    (Wholesaling   or    Dis- 
tributing Trade). 

Dyeing,  Cleaning  and — Trade 

Dyeing,  Rayon  and  Silk — and  Printing 

Dyeing,  Silk  and  Rayon — and  Printing  Industry: 

Temporarj^  Code  Approved 

Effective,  Stay  of — date  of  Article  VIII  for  Bankers 
Elect,  Further  extension  of  time  for  curtain  manu- 
facturers to — not  to  be  bound  under  the  code  of 
fair  competition  for  the  Upholstery  and  Drapery 

Textile  Industry 

Electrical  Manufacturing 

Electrical,  Structural,  and — Division — See  (Slate). 
Electrical  Supplies  Division — See  (Wholesaling  or 

Distributing  Trade). 
Electric     Industrial     Truck     Manufacturing — See 
(Fabricated  Metal  Products  Manufacturing  and 
Metal  Finishing  and  Metal  Coating). 

Electric  Storage  and  Wet  Primary  Battery 

Electrotyping  and  Stereotyping 

Emblems,  Rules  and  regulations  concerning  labels 

bearing — or  Insignia  of  the  N.R.A 

Embroidery  and  Lace  Division — See  (Wholesaling 

or  Distributing  Trade). 
Emergency  requirement  as  to  further  limitation  of 
hours    of    machine    operation    in    Carded    Yarn 

Group  of  the  Cotton  Textile  Industry 

Emergency  requirement  as  to  further  limitation  of 
hours  of  printing  machine  operation  in  the  Fin- 
ishing Branch  of  the  Cotton  Textile  Industry — 
Empty    Picture     Frame     Division — See     (Picture 

Moulding  and  Picture  Frame). 
Enameled  Cast  Iron  Plumbing  Fixtures  Division — 
See  (Plumbing  Fixtures). 

End  Grain  Strip  Wood  Block 

Engraving,  Photo 

Envelope 

Equipment,  Automotive  Parts  and — Machinery' — 

Equipment,     Business     Furniture,     Storage — and 

Filing  Supply 


11-1-33 
1-16-34 


1-27-34  I 
10-31-33  I 

12-14-33 

12-14-33 

10-21-33 
10-21-33 


11-8-33 
12-15-33 


10-3-33 


11-8-33 
12-21-33 

7-22-33  i 
12-11-33 


10-3-33 
12-23-33 

1-17-34 


12-15-33 
12-18-33 


12-30-33 

12-23-33 

1-23-34 

11-8-33 

11-4-33 


II  ;  263 
V  :  225 


V 
II 

IV 

IV 

II 
II 


485 
77 

697 

699 

149 

27 


IV     692 
IV      141 


437 


II      547 
IV  !  311 

I      718 
IV  :  696 


12-11-33         IV      686 
8-4-33  I  -    43 


I      499 
IV  ,  415 


778 


IV      703 


IV 


704 


IV  oil 

IV  429 

V  331 

II  599 

II  383 


798 


Code 

No. 


39 
139 

89 

85 

197 

158 


Industry 


Equipment,  Fabric  Auto — Division— See  (Light 
Sewing  Industry  Except  Garments). 

Equipment,  Farm 

Equipment,  Machine  Tool  and  Distributors 

Equipment,  Office — Manufacturers 

Equipment,     Petroleum — Industry     and     Trade 

(American) 

Equipment,  Retail  Farm — Trade 

Equipment,  Stone  Finishing  Machinery  and 

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

Board 

Excelsior  and  Excelsior  Products 

Exception,  Disapproval  of- — and  termination  of 
staA'  under  the  code  of  fair  competition  for  the 

Cotton  Textile  Industry 

Exception,  Temporarj^ — for  members  under  Article 
V,  Section  4  (d)  and  6— See  (Retail  Trade). 

Exchange,  Stock — Firms 

Exemption,  Granting  limited — from  provisions  of 
Codes  of  Fair  Competition  in  connection  with 

sales  to  Hospitals 

Exemption  of  members  from  certain  provisions  of 
Article  XI  for  the  Cement  Industry,   pending 

Modification 

Exemptions  from  the  President's  Reemployment 
Agreement  of  employers  in  towns  less  than  2,500 

in  population 

Extension,  Further — of  time  for  certain  manufac- 
turers to  elect  not  to  be  bound  under  the  code  of 
fair  competition  for  the  Upholstery  and  Drapery 

Textile  Industry 

Extension  of  stay  for  Underwear  and  Allied  Prod- 
ucts Manufacturing  Industry 

Extension  of  termination  date  of  Stay  limiting  ma- 
chine hours  in  Cotton  Textile  Industry  as  apply- 
ing to  rubber-tire  yarn 

Extension    of   termination    date   of   stay   limiting 

machine  hours  in  Cotton  Textile  Industry 

Extension  of  the  effective  date  of  codes  of  fair  com- 
petition for  the  Retail  Trade 

Extinguishing,  Fire — Appliance  Manufacturing 

Fabricated    Metal    Products    Manufacturing    and 

Metal  Finishing  and  Metal  Coating 

Supplement,  No.  1,  for  Metallic  Wall  Structure 

Industrial  Subdivision 

Supplement,  No.  2,  for  Hand  Chain  Hoist  Mfg. 
Supplement,  No.  3,  for  Chain  Manufacturing.. 
Supplement,    No.    4,    for    Electric    Industrial 

Truck  Manufacturing 

Fabricating,  Reinforcing  Materials 

Fabric     Auto     Equipment     Division — See     (Light 

Sewing  Industry  Except  Garments). 
Fabrics,  Automobile — Proofing  and  Backing  Divi- 


sion. 


Fabrics,  Corset,  Brassiere,  and  Allied  Trades — 
Division — See  (Cotton  Textile  Supplement,  No. 

Fabrics,  Curtain  and  Drapery — Division — See 
(Cotton  Textile  Supplement,  No.  1). 

Fabrics,  Upholstery  and  Decorative — Division — 
See  (Wholesaling  or  Distributing  Trade). 

Fabric,  Slit — Manufacturing 


Date 

Volume 

10-3-33 

I 

11-27-33 

III 

11-4-33 

II 

11-2-33 

II 

1-6-34 

V 

12-15-33 

IV 

1-6-34 
12-7-33 


11-6-33 
11-4-33 
1-23-34 
1-23-34 
10-23-33 

12-11-33 
10-20-33 

11-13-33 

11-27-33 

11-27-33 
11-4-33 

11-2-33 

1-10-34 
1-30-34 
1-31-34 

1-31-34 
11-27-33 

12-15-33 


V 
III 


IV 
II 

V 
V 

II 

IV 

II 

III 

III 

III 
II 

II 

V 
V 

V 

V 

III 

IV 


1-16-34 


Page 


489 
485 
413 

339 

17 

129 

768 
565 


685 
481 
782 
780' 
699 

686 
697 

655 

658 

660 
511 

327 

703 
727 
739 

751 

285 

84 


245 


799 


Code 
No. 

industry 

Date 

Volume 

Page 

Face,    Window — Bag    Division — See    (Paper    Bag 

Manufacturing). 

'>3S 

Fan  and  Blower    ___        _    .. 

1-30-34 
10-3-33 

V 

I 

575 

39 

Farm  Equipment      _ 

489 

Amendment,  No.  1 

12-21-33 

IV 

657 

197 

Farm,  Retail— Equipment  Trade                             .    . 

1-6-34 

V 

17 

243 

Fastener,   Slide.     __        _        .        .          .-. 

1-31-34 

V 

635 

29 

Feather,  Artificial  Flower  and 

9-18-33 

I 

381 

206 

Feldspar.                                       .            . 

1-16-34 

V 

153 

30 

Felt  Base,  Linoleum  and — Manufacturers 

9-18-33 

I 

389 

73 

Felt,  Hair  and  Jute 

10-31-33 

II 

199 

143 

Felt,  Wool — Manufacturing 

11-27-33 

III 

535 

67 

Fertilizer              ...__- 

10-31-33 

II 

119 

88 

Filing,    Business    Furniture,    Storage    Equipment 

and — Supply 

11-  4-33 

II 

383 

Fine  Goods,  Further  limitation  of  machinery  opera- 

tion in  the — Group  of — See  (Cotton  Textile  In- 

dustry) . 

Finished  Moulding  Diyision — See  (Picture  Mould- 

ing and  Picture  Frame). 

Finishing  Branch,   Emergency  requirement  as  to 

further  limitation  of  hours  of  printing  machine 

operation  in  the — of  the  Cotton  Textile  Industry. 

12-18-33 

IV 

704 

84 

Finishing,  Fabricating  Metal  Products  Mfctg.  and 

Metal—,  and  Metal  Coating 

11-  2-33 

II 

327 

Finishing,  Further  limitation  of  hours  of  Printing 

machine     operation     in     the— Branch     of — See 

(Cotton  Textile  Industry). 

Finishing,  Regulations  for  registration  of  machinery 

and  filing  of  monthly  reports  in — Thread  Manu- 

facturing and  Yarn  Mercerizing  Branches  of — 

See  (Cotton  Textile  Industry). 

158 

Finishing,  Stone — Machinery  and  Equipment 

Finishing,    Textile — ,    temporarih^    placed    under 

12-15-33 

IV 

129 

Cotton  Textile  Industry 

7-21-33 

I 

716 

184 

Finish,  Shoe  and  Leather — ,  Polish  and  Cement 

Manufacturing 

12-30-33 

IV 

485 

62 

Firebox,  Steel  Tubular  and — Boiler 

10-23-33 

II 

57 

Fire  Clay  Producers -               

12-18-33 
12-18-33 

IV 
IV 

255 

Fire  Clay  Refractories  Diyision 

255 

98 

Fire  Extinguishing  Appliance  Manufacturing 

11-4-33 

II 

511 

108 

Fire,  Motor — Apparatus  Manufacturing __     ._   __ 

11-8-33 

II 

629 

95 

Firms,   Stock  Exchange 

11-4-33 

II 

481 

13 

Fishing  Tackle 

Fitted  Picture  Frame  Division — See  (Picture  Mould- 
ing and  Picture  Frame). 
Fittings,    Sanitary     Brass    Plumbing — Division — 
See  (Plumbing  Fixtures). 

8-19-33 

I 

217 

153 

Fittings,  Valve  and — Manufacturing 

Fixtures,    Enameled    Cast    Iron    Plumbing — Divi- 
sion— See  (Plumbing  Fixtures). 

Fixtures,  Plumbing — See  (Plumbing  Fixtures). 

Fixtures,    Vitreous    China    Plumbing — Division — 
See  (Plumbing  Fixtures). 

12-15-33 

IV 

29 

Flatwear,  Hotelware — and  Hollow  Ware 

12-23-33 

IV 

389 

Flatware,  Plated     --    - 

12-23-33 

12-23-33 

11-4-33 

IV 
IV 

II 

389 

Flatware,  Sterling                         -          .                  _    _  - 

389 

92 

Floor  and  Wall  Clav  Tile  Manufacturing 

443 

Floor    Covering    Division — See    (Wholesaling    or 

Distributing  Trade). 

224 

Floor,  Furniture  and — Wax  and  Polish    _ 

1-23-34 
12-15-33 

V 
IV 

381 

Flooring,  Rubber — Division 

88 

800 


Floor    Tile,    Cork — Manufacturers    Division — See 

(Cork). 
Floor,     Waterproofing,     Dampproofing,     Caulking 
Compounds  and  Concrete — Treatments  Manu- 
facturing   

Flower,  Artificial — and  Feather 

Folding  Paper  Box 

Food,  Retail — and  Grocery  Trade 

Retail — and  Grocery  Trade  Labor  Provisions- 
Wholesale — and  Grocery  Trade  Labor  Provi- 
sions   

Food,  Wholesale — and  Grocery  Trade 

Footwear,  Rubber — Division 

Forging,  Machine  Tool  and — Machinery 

Foundry,  Non-Ferrous 

Frame,    Empty    Picture — Division — See    (Picture 

Moulding  and  Picture  Frame). 
Frame,     Fitted    Picture — Division — See     (Picture 

Moulding  and  Picture  Frame). 
Frame,  Metal  and  Metal — Division — See  (Picture 
Moulding  and  Picture  Frame). 

Frame,  Picture  Moulding  and  Picture 

French     Worsted     Spinners — System,    Division — 

See  (Wool  Textile  Amendment,  No.  L). 
Fuel,      Charcoal     and     Packaged — Division — See 

(Wholesaling  or  Distributing  Trade). 
Functions,  Delegating  further — and  powers  to  the 

Administrator  for  Industrial  Recovery 

Funeral  Supply 

Funeral  Vehicle,  Supplement  to  Automobile  Manu- 
facturing  

Fur  Dressing  and  Fur  Dyeing 

Furnace,  Blast— Castings  Supplement 

Furance,  Warm  Air — Manufacturing 

Furniture  and  Floor  Wax  and  Polish 

Furniture,  Business — Storage  Equipment  and  Filing 

Supplies 

Furniture  Manufacturing 

Furniture     Manufacturing — Temporary     stay     of 

Articles  III,  IV,  and  V  for  the — -Industry 

Furniture,  Porcelain  Breakfast — Assembling 

Furriers'   Supplies  Division — See   (Wholesaling  or 

Distributing  Trade). 
Further  extension  of  time  for  certain  manufacturers 
to  elect  not  to  be  bound  under  the  code  of  fair 
competition  for  the  Upholstery  and  Drapery  Tex- 
tile Industry 

Further  limitation  of  hours  of  Printing  Machine  op- 
eration in  the  Finishing  Branch  of  the  Cotton 

Textile  Industry 

Further  limitation  of  machinery  operation  in  the 
Fine  Goods  Group  of  the  Cotton  Textile  Industry. 

Fur  Trapping  Contractors 

Garment,  Allocation  of  States  to  the  Southern  divi- 
sion under  the  Cotton — Industry 

Garment,  Banana,  and  Dry  Cleaner  or — Delivery 
Bag  Division — See  (Paper  Bag  Manufacturing). 

Garment,  Cotton 

Garment  Manufacturers,  temporarily  place  under 

Cotton  Textile  Industry 

Garments,  Light  Sewing  Industry  Except 

Garments,   Notion,   Thread  and   Women's — Divi- 
sion— See  (Wholesaling  or  Distributing  Trade). 


11-27-33 

III 

9-18-33 

I 

12-30-33 

IV 

12-30-38 

IV 

11-15-33 

III 

11-15-33 

III 

1-4-34 

V 

12-15-33 

IV 

11-8-33 

II 

12-18-33 

IV 

1-16-34 


12-30-33 
11-4-33 

11-8-33 
12-18-33 
12-18-33 
11-27-33 

1-23-34 

11-4-33 
12-7-33 

1-12-34 
1-30-34 


12-11-33 


1-23-34 

1-29-34 
12-15-33 

12-20-33 


11-17-33 

7-26-33 
1-23-34 


IV 
II 

II 
IV 
IV 
III 

V 

II 
III 

V 
V 


IV 


V 
IV 

IV 


III 

I 
V 


801 


Industry 


Garment,  Stay  for  the  Dress  Manufacturing  Indus- 

trj'  and  Cotton — Industrj' 

Garment,  Woolen  and  Trimming — Supplies  Divi- 
sion— See  (Wholesaling  or  Distributing  Trade). 
Garter,  Men's — Suspender  and  Belt  Manufactur- 
ing— See  (Men's    Garter,  Suspender,    and    Belt 
Manufacturing). 

Gas  Appliance  and  Apparatus 

Gas  Cock 

Gas,  Liquefied 

Gasoline  Pump  Manufacturing 

Amendment,  No.  1 

Gear  Manufacturing 

Glass  Container 

Glass  House  Refractories 

Glassine  Bag  Division — See  (Paper  Bag  Manufac- 
turing) . 

Glassware,  American 

Glassware,    Automatic — Division — See    (American 

Glassware) . 
Glassware,     Automatic     Tumbler — Division — See 

(American  Glassware) . 
Glassware,  Automobile — Division — See  (American 

Glassware) . 
Glassware,  Blown — Division — See  (American  Glass- 
ware) . 
Glassware,  Blown  Table — Division — See  (American 

Glassware) . 
Glassware,   Cutting   &   Decorating   Division— See 

(Amierican  Glassware). 
Glassware,  Illuminating — Division — See  (American 

Glassware) . 
Glassware,  Miscellaneous — Division — See  (Ameri- 
can Glassware). 
Glassware,      Pressed — Division — See      (American 

Glassware) . 
Glassware,     Scientific — Division — See     (American 

Glassware) . 
Glassware,   Technical  and  Industrial — Division — 

See  (American  Glassware). 
Globes,  Lamp  Chimneys  and  Lantern — Division — 
See  (American  Glassware). 

Glove,  Cotton  Cloth — Manufacturing 

Glove,  Leather  and  Woolen  Knit 

Glove,  stay  of  wage  provisions  for  the  Southern 
Section  under  the  Cotton  Cloth — Manufacturing 

Industry 

Glove,  Temporar}^  hours  modification  for  the  Leath- 
er and  Wool  Knit — Industry 

Glycerine,  Soap  and — Manufacturing 

Goods,  Further  limitation  of  machinery  operation 
in  the  Fine — Group  of — See  (Cotton  Textile 
Industry) . 

Goods,  Luggage  and  Fancy  Leather 

Goods,  Mechanical  Rubber — Division 

Goods,  Wash — Division — See  (Cotton  Textile  Sup- 
plement, No.  1). 
Granting    limited    exemption    from    provisions    of 
Codes  of  Fair  Competition  in  connection  with 

sales  to  Hospitals 

Gravel,  Crushed  Stone,  Sand  and — ,  and  Slag 


Date 


12-14-33 


Volume 


IV 


11-27-33 

III 

10-31-33 

II 

11-8-33 

II 

9-18-33 

I 

12-21-33 

IV 

11-14-33  I 

III 

10-3-33 

I 

12-18-33  1 

IV 

1-16-34 


12-30-33 
11-4-33  I 


12-30-33 

12-6-33 
11-2-33 


10-3-33 
12-15-33 


1-23-34 
11-10-33 


IV 
II 


IV 

IV 
II 


I 
IV 


V 
II 


802 


Industry 


Gravel,     Administrative    approval    of    Industrial 
Sand  Division  of  the  Crushed  Stone,  Sand  and — , 

and  Slag  Industries 

Grinding  Wheel 

Grocery  Bag  Division — See  (Paper  Bag  Mfg.). 

Grocery,  Retail  Food  and — ^Trade 

Grocery,    Retail    Food    and — Trade    Labor    Provi- 
sions   

Grocery,  Wholesale  Food  and — ^Trade 

Grocery,  Wholesale  Food  and — Trade  Labor  Pro- 


visions   

Gum,  Chewing 

Hair  and  Jute  Felt 

Hair  Cloth  Manufacturing 

Hand  Chain  Hoist  Manufacturing — See  (Fabri- 
cated Metal  Products  Manufacturing  and  Metal 
Finishing  and  Metal  Coating). 

Handkerchief 

Hand  Made  Bag,  Wholly  or  Semi — Division — 
See  (Paper  Bag  Manufacturing). 

Hard  Rubber   Division __: 

Hardware  Division — See  (Wholesaling  or  Dis- 
tributing Trade). 

Hardwood  Distillation 

Hat  Die,  Metal — arid  Wood  Hat  Block 

Hats  and  Caps  Division — See  (Wholesaling  or  Dis- 
tributing Trade). 
Hearings,   Authorization  of  Administrator  to  ap- 
point personnel,  fix  compensations  and  conduct.. 

Heat  Exchange 

Heating,  Cooking  and — Appliance  Manufacturing. 

Heel  and  Sole  Division 

High  Temperature  Bonding  Mortars  Division 

Hoist,  Hand  Chain — Manufacturing — See  (Fabri- 
cated Metal  Products  Manufacturing  and  Metal 
Finishing  and  Metal  Coating). 

Hollow  Ware,  Hotelware,  Flatware  and 

HoUow  Ware,  Plated 

Hollow  Ware,  Sterling 

Hosiery 

Hosiery  Manufacturers,  temporary  code  approved. 
Hosiery,  Temporary  changes  of  Article  IV  for  the — 

Industry 

Hospitals,  Granting  limited  exemption  from  pro- 
visions of  Codes  of  Fair  Competition  in  connec- 
tion with  sales  to 

Hotel. 


Stay  for  the — Industry 

Hotel,  Stay  of  wage-hours  provisions  for  the — In- 
dustry  

Hotelware,  Flatwear,  and  Hollow  Ware 

Hot  Top,  Ladle  and — Refractories 

Hours,  Further  limitation  of — of  Printing  Machine 
operation  in  the  Finishing  Branch  of — See  (Cot- 
ton Textile  Industry) . 

Hours,  Limitation  of  machine — for  the  Cotton  Tex- 
tile Industry 

Hours,  Modification  of  emergency  requirement  as  to 
limitation  of — of  machine  operation  in  the  Carded 
Yarn  Group  of — See  (Cotton  Textile  Industry) . 

Hours,  Stay  of  Wage — provisions  for  the  Hotel 
Industry 


Date,  1933-34 


12-27-33 
12-21-33 

12-30-33 

11-15-33 
1-4-34 

11-15-33 

1-30-34 

10-31-33 

12-15-33 


10-9-33 
12-15-33 


11-10-33 
1-23-34 


7-15-33 
10-11-33 

1-30-34 
12-15-33 
12-18-33 


12-23-33 

12-23-33 

12-23-33 

8-26-33 

7-26-33 

12-14-33 


1-23-34 
11-17-33 
12-29-33 

12-2-33 
12-23-33 
12-18-33 


12-2-33 


12-2-33 


Volume 


Page 


IV 

IV 

IV 

III 

V 

III 

V 

II 

IV 


I 

IV 


II 

V 


V 

I 

V 
IV 
IV 


IV 
IV 
IV 

I 
I 

IV 


V 

III 

IV 

IV 
IV 
IV 


IV 


IV 


707 

287 

457 

633 
1 


803 


Code 
No. 

Industry 

Date 

Volume 

Page 

Hours,  Temporary  limitation  of — of  machine  opera- 

tion in  the  Combed  Sales  Yarn  Group  of — See 

(Cotton  Textile  Industry). 

Hours,  Temporary  limitation  of — of  machine  opera- 

tion in  the  Wide  Bed  Sheeting  Group  of — See 

(Cotton  Textile  Industry). 

Hours,  Temporary — modification  for  the  Leather 

and  Woolen  Knit  Glove  Industry 

12-6-33 
12-30-33 

IV 
IV 

695 

183 

Household  Ice  Refrigerator 

473 

43 

Ice 

10-3-33 
12-30-33 

I 

IV 

529 

183 

Ice,  Household — Refrigerator 

473 

Illuminating   Glassware   Division — See    (American 

Glassware) . 

Industrial  Glassware,   Technical  and — Division — 

See  (American  Glassware). 

Industrial  Recovery,  Delegating  further  fimctions 

and  powers  to  the  administrator  for 

12-30-33 

IV 

689 

Industrial  Recovery,  Providing  for  notice  of  pro- 

ceedings and  matters  in  the  administration  of  the 

National — Act 

12-21-33 

IV 

687 

Industrial  Sand  Division,  Administrative  approval 

of — of  the  Crushed  Stone,  Sand  and  Gravel,  and 

Slag  Industries 

12-27-33 

IV 

707 

Industrial  Subdivision,  Metallic  Wall  Structure — 

See  (Fabricated  Metal  Products  Manufacturing 

and  Metal  Finishing  and  Metal  Coating). 

61 

Industrial    Supplies   and    Machinerv    Distributors 

Trade "_ 

10-23-33 

II 

47 

173 

Industry  Engaged  in  the  Smelting  and  Refining  of 

Secondary  Metals  into  Brass  and  Bronze  Alloys 

in  Ingot  Form 

12-21-33 

IV 

325 

Information,  providing  for  submission  of  Statistics 

by  Persons  subject  to  Codes  of  Fair  Competition- 

12-7-33 

III 

662 

112 

Insect,  All-Metal — Screen 

1 1-4-33 
1-30-34 

III 

V 

9 

240 

Installation,  Advertising  Display 

601 

Insulation,     Cork — Manufacturers     Division — See 

(Cork). 

Interlinings  Division — See  (Cotton  Textile  Supple- 

plement.  No.  1.) 

International  Association  of  Garment  Manufactur- 

ers temporarily  placed  under  Cotton  Textile  In- 

dustr  J' 

7-26-33 
11-27-33 

8-19-33 
12-30-33 

I 

III 

I 

IV 

722 

141 

Investment  Bankers 

509 

11 

Iron  and  Steel 

171 

192 

Iron,  Cast — Pressure  Pipe 

579 

18 

Iron,  Cast — Soil  Pipe 

9-7-33 

I 

259 

Iron,    Enameled    Cast — Plumbing    Fixtures    Divi- 

sion— See  (Plumbing  Fixtures). 

93 

Iron,  Washing  and — Machine  Manufacturing 

11-4-33 

II 

461 

132 

Iron,  Malleable 

11-27-33 

III 

393 

Jewelry  Division — See  (Wholesaling  or  Distribut- 

ing Trade). 

175 

Jewelry,  Medium,  and  Low  Priced — Manufactur- 

ing  

12-23-33 

IV 

355 

Jewel rv,    Men's   Novelty — Divi.sion — See    (Whole- 

saling or  Distributing  Trade). 

130 

.lewelry.  Precious — Producing 

11-27-33 

III 

365 

142 

Jewelry,  Retail — Trade 

11-27-33 

III 

517 

Jobbers,    Cycle — Division — See    (Wholesahng    or 

Distributing  Trade). 

Johnson,  General  Hugh  S.,  Appointment  as  Admin- 

istrator  

6-16-33 

I 

711 

Appointment  as  member  of  each  Code  Author- 

ity  

9-29-33 

I 

733 

40121-  -Si- 


ll 


804 


Industry 


Journal  Bearings,  Railway  Brass  Car  and  Locomo- 
tive— and  Castings  Manufacturing 

Jute,  Hair  and — Felt 

Knit,  Leather  and  Woolen — Glove 

Knitted  Woolen  Goods  Division — See  (Wool  Tex- 
tile Amendment,  No.  1). 
Knit,  Temporary  hours  modification  for  the  Lea- 
ther and  Woolen — Glove  Industry 

Knitted  Outerwear 

Knitting,  Braiding  and  Wire  Covering  Machinery.  _ 
Labels,  Rules  and  regulations  concerning — bearing 

Emblems  or  Insignia  of  the  N.R.A 

Laboratory ,  Dental 

Laboratory,  Motion  Picture 

Labor  Provisions: 

Beet  Sugar 

Retail  Food  and  Grocery  Trade 

Wholesale  Food  and  Grocery  Trade 

Lace,     Embroidery    and — Division — See    (Whole- 
saling or  Distributing  Trade). 

Lace  Manufacturing 

Amendment,  No.  1 

Lace,  Nottingham — Curtain 

Lacquer,  Paint,  Varnish  and — Mfctg 

Ladder  Manufacturing 

Ladle  and  Hot  top  Refractories 

Lamp  Chimneys  &  Lantern   Globes  Division — See 

(American  Glassware). 
Laundry  and  Dry  Cleaning  Machinery  Manufac- 
turing  

Leather  and  Woolen  Knit  Glove 

Leather  and  Woolen  Knit  Glove,  Temporary  hours 

modification  for  the — Industry 

Leather  Industry 

Leather,  Luggage  and  Fancy — Goods 

Leather,   Shoe  and — Finish,    Polish,   and   Cement 

Manufacturing 

Legitimate    Full-Length    Dramatic    and    Musical 

Theatrical 

Light  Sewing  Industry  Except  Garments 

Comfortable  Division 

Covered  Carpet  Padding  Division 

Fabric  Auto  Equipment  Division 

Mattress  Cover  Division 

Motor  Robe  Division 

Quilting  Division 

Table  Pad  Division 

Lime 

Limestone 

Limitation,  Emergency  requirement  as  to  further — 
of  hours  of  machine  operation  in  Carded  Yarn 

Group  of  the  Cotton  Textile  Industry 

Limitation,  Emergency  requirement  as  to  further — 
hours  of  printing  machine  operation  in  the 
Finishing  Branch  of  the  Cotton  Textile  Industry 
Limitation,  Further — of  hours  of  Printing  Machine 
operation  in  the  Finishing  Branch  of — See  (Cot- 
ton Textile  Industr}'). 
Limitation,  Further — of  machinery  operation  in 
the  Fine  Goods  Group  of — See  (Cotton  Textile 
Industry) . 


Date 

Volume 

1-29-34 

V 

10-31-33 

II 

11-4-33 

II 

12-6-33 

IV 

12-18-33 

IV 

10-3-33 

I 

1-17-34 

V 

1-22-34 

V 

9-7-33 

I 

10-27-33 

II 

11-15-33 

III 

11-15-33 

III 

8-14-33 

I 

12-23-33 

IV 

11-1-33 

II 

10-31-33 

II 

11-8-33 

II 

12-18-33 

IV 

10-3-33 

I 

11-4-33 

II 

12-6-33 

IV 

9-7-33 

I 

10-3-33 

I 

12-30-33 

IV 

8-16-33 

I 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

10-3-33 

I 

11-14-33 

III 

12-15-33 

IV 

12-18-33 

IV 

511 

199 
367 


805 


Code 
No. 


Industry  Date  Volume 


30 
104 
169 

233 

175 

42 

9 


234 

228 


32 


144 


Page 


693 


Limitation,  Modification  of  emergency  Require- 
ment as  to — of  hours  of  machine  operation  in  the 
Carded  Yarn  Group  of — See  (Cotton  Textile 
Industry). 

Limitation  of  machine  hours  for  the  Cotton  Textile 

Industry ;     12-2-33  I       IV 

Limitation,  Temporary — of  hours  of  machine  oper- 
ation in  the  Combed  Sales  Yarn  Group  of — See 
(Cotton  Textile  Industry). 

Limitation,  Temporary— of  hours  of  machine  oper- 
ation in  the  Wide  Bed  Sheeting  Group  of — See 
(Cotton  Textile  Industry). 

Limitation,  Temporary — of  naachine  operation  of 
the  Combed  Thread  Producers  Group  in  respect 
of  the  production  of  Combed  Yarn — See  (Cotton 
Textile  Industry). 

Limitation,  Temporary — of  machine  operation  of 
the  Mercerizers  Group  in  respect  of  the  produc- 
tion of  Combed  Yarn — See  (Cotton  Textile  In- 
dustr}-) . 

Linings,  All-Cotton  Clothing — Division — See  (Cot- 
ton Textile  Supplement,  No.  1). 

Linings,  Clothiers' — Division — See  (Cotton  Textile 
Supplement,  No.  1). 

Linoleum  and  Felt  Base  Manufacturers 

Liquefied  Gas 

Loan,  Savings,  Building  and — Associations 

Locomotive  Arch  Refractories 

Locomotive,  Railway  Brass  Car  and — Journal 
Bearings  and  Castings  Manufacturing 

Low,  Medium  and — Priced  Jewelry  Manufacturing. 

Luggage  and  Fancy  Leather  Goods 

Lumber  and  Timber  Products 

Amendments,  1  &  2 

Amendments,  3  &  4 

Denial  of  application  for  exemption  bv  Greens- 
boro Lumber  Co ■ I  10-20-33  Ii  ,  696 

Lumber  Products,  Retail  Lumber — Building  Mate- 
rials and  Building  Specialties — See  (Retail 
Lumber,  Lumber  Products,  Building  Materials 
and  Building  Specialties). 

Macaroni 1-29-34  V      521 

Machine,  Coin  Operated — Manufacturing 1-23-34  V      435 

Machine,  Further  limitation  of  hours  of  printing — 
operation  in  the  Finishing  Branch  of — See 
(Cotton  Textile  Industry). 

Machine  hours.  Curtailment  of — for  the  Silk  Tex- 
tile Industry 12-23-33         IV      705 

Machine,  Knitting,  Braiding,  and  Wire  Covering 10-3-33  I      411 

Machine,  Modification  of  emergency  requirement 
as  to  limitation  of  hours  of — operation  in  the 
Carded  Yarn  Group  of — See  (Cotton  Textile 
Industry). 

Machine  operation,  Emergency  requirement  as  to 

further  limitation  of  hours  of— in  Carded  Yarn   |  ' 

Group  of  the  Cotton  Textile  Industry 12-15-33         IV      703 

Machine  operation.  Emergency  requirement  as  to 

further  limitation  of  hours  of  j)rinting- — in  the  \  i 

Finishing  Branch  of  the  Cotton  Tt.xtile  Industry..,  12-18-33  |       IV      704 

Machine,  Paper  Making — Builders 12-7-33  i      III      543 

Machinery,  Canning  and  Packing — See  (Canning 
and  Packing  Machinery). 


9-18-33 

I 

389 

11-8-33 

II 

587 

12-21-33 

IV 

279 

12-18-33 

IV 

255 

1-29-34 

V 

511 

12-23-33 

IV 

355 

10-3-33 

I 

519 

8-19-33 

I 

95 

10-9-33 

I 

705 

12-7-33 

IV 

633 

806 


Code 

No. 


Industry 


Machinen^  Construction — Distributing  Trade 

Machinery,  Further  limitation  of — operation  in  the 
Fine  Goods  Group  of — See  (Cotton  Textile 
IndustrjO . 

Machinery,  Marine  Auxiliary 

Machinery,  Regulations  of  registration  of — and 
filing  of  monthly  reports  in  Finishing,  Thread 
Manufacturing,  and  Yarn  Mercerizing  Branch 
of — See  (Cotton  Textile  Industry) . 
Machinery,  Stay  of  Code  provisions  as  to  pro- 
ductive— operation     for     the     Cotton     Textile 

Industry 

Machine,  Temporary  limitation  of  hours  of — opera- 
tion in  the  Combed  Sales  Yarn  Group  of — See 
(Cotton  Textile  Industry). 
Machine,  Temporary  limitation  of  hours  of — opera- 
tion in  the  Wide  Bed  Sheeting  Group  of — See 
(Cotton  Textile  Industry). 
Machine,   Temporary  limitation  of — operation  of 
the  Combed  Thread  Producers  Group  in  respect 
of  the  production  of  Combed  Yarn — See  (Cotton 
Textile  Industry). 
Machine,   Temporary  limitation  of — operation  of 
the  Mercerizers  Group  in  respect  of  the  produc- 
tion   of    Combed    Yarn — See    (Cotton    Textile 
Industry). 

Machine  Shop,  Special  Tool,  Die  and 

Machine  Tool  &  Equipment  Distributing  Trade 

Machine  Tool  and  Forging  Machinery 

Machine,  Washing  and  Ironing — Manufacturing 

Machined  Waste  Manufacturing 

Machinery,  Industrial  Supplies  and — Distributors 

Trade .1 

Machinery,  Packaging — Industry  and  Trade 

Machinery,  Road — Manufacturing 

Machinery ,  Textile 

Malleable  Iron 

Marine  Auxiliarj^  Machinery 

Marine   Goods,   Cork — Manufacturers   Division — 
See  (Cork). 

Marking  Devices 

Masonry ,  Concrete 

Mastic  Tile,  Asphalt  and 

Match,  American 

Mattress  Cover  Division — See   (Light  Sewing  In- 
dustry Except  Garments). 

Mechanical  Rubber  Goods  Division 

Medium  and  Low  Priced  Jewelry  Manufacturing.. 

Men's  Clothing 

Amendment,  No.  1 

Amendment,  No.  2 

Men's  Garter,  Suspender  and  Belt 

Amendment,  No.  1 

Men's  Novelty  Jewelry  Division — See  (Wholesaling 

or  Distributing  Trade). 
Men's  Wear  Buttons  Division — See  (Wholesaling 

or  Distributing  Trade). 
Men's  Wear,  Carded — Division — See  (Wool  Tex- 
tile Amendment,  No.  1). 
Men's  Wear,  Worsted — Division — See  (Wool  Tex- 
tile Amendment,  No.  1). 


Date 


1-23-34 


1-30-34 


7-30-33 


11-17-33 

11-27-33 

11-8-33 

11-4-33 

12-7-33 

10-23-33 
10-31-33 
10-31-33 

10-3-33 
11-27-33 

1-30-34 


10-20-33 

11-27-33 

12-7-33 

12-30-33 


12-15-33 

12-23-33 

8-26-33 

12-15-33 

12-18-33 

11-4-33 

1-27-34 


Volume 


V 


IV 


III 

III 

II 

II 

III 

II 

II 

II 

I 

III 

V 


II 
III 
III 

IV 


IV 

IV 

I 

IV 
IV 

II 

V 


Page 


369 


625 


691 


187 
485 
577 
461 
607 

47 
187 
137 
449 
393 
625 


13 
407 
617 
621 


104 
355 
229 
637 
649 
471 
695 


807 


Industry 


Mercerizers,  Temporary  limitation  of  machine  op- 
eration of  the-T-Group  in  ce^pect  of  the  prpduc- 
tion  of  Combed  Yarn — See  (Cotton  Textile 
Industry). 
Mercerizing,  Regulations  for  registration  of  ma- 
chinery and  filing  of  monthly  reports  in  Finish- 
ing, Thread  Manufacturing  and  Yarn — Branches 
of — See  (Cotton  Textile  Industry). 

Merchandise,  Musical — Manufacturing 

Merchandise  Warehousing  Trade 

Metal  and   Metal  Frame   Division — See   (Picture 

Moulding  and  Picture  Frame). 
Metal,  Fabricated — Products  Manufacturing  and 

Metal  Finishing  and  Metal  Coating 

Metal  Frame,  Metal  and — Division — See  (Picture 
Moulding  and  Picture  Frame). 

Metal  Hat  Die  and  Wood  Hat  Block 

Metallic  Wall  Structure  Industrial  Subdivision — 
See  (Fabricated  Metal  Products  Manufacturing 
&  Metal  Finishing  and  Metal  Coating). 
Metal,  Sheet — Division — See  (Wholesaling  or  Dis- 
tributing Trade). 
Metals,  Smelting  and  Refining  of  Secondary — Into 

Brass  and  Bronze  Alloys  in  Ingot  Form 

Metal  Tank 

Metal  Window 

Mill,  Copper  and  Brass — Products 

Millinery 

Temporary  stay  of  Article  IV,  Section  3  for 

the — Industry 

MiUinery  and  Dress  Trimming  Braid  and  Textile. 
Millinery  and  Notion  Bag  Division — See   (Paper 
Bag  Manufacturing). 

Milling,  Raw  Peanut 

Mill,  Steel  and  Rolling — Castings  Supplement 

Miscellaneous  Glassware  Division — See  (American 

Glassware) . 
Miscellaneous  Non-Ferrous  Sand  Castings  Supple- 
ment  

Miscellaneous,  Pewter,  Chromium  Plate  and 

Modifications: 

Exemption  of  members  from  certain  provisions 
of  Article  XI,  pending — See  (Cement  In- 
dustry) . 
Of  Emergency  requirement  as  to  limitation  of 
hours  of  machine  operation  in  the  Carded 
Yarn  Group  of  the  Cotton  Textile  Industrj-.. 
Of  Executive  Order  of  July  27,  1933,  placing 
the  Cordage  and  Twine  Industry  temporarily 

under  Cotton  Textile  Industry 

Of  President's  Reemployment  Agreement 

Temporary    hours — for    the    Leather    and 

Woolen  Knit  Glove  Industry 

Temporary — of  method  of  computing  costs 
for — See  (Retail  Lumber,  Lumber  Products, 
Building  Materials  and  Building  Specialties 
Industry) . 

Mop,  Dry  and  Polishing — Manufacturing 

Mop  Stick  . 

Mop,  Wet — Manufacturing 

Mortars,  High  Temperature  Bonding— Division 

Moth  Proof  Paper  Products  Division — See  (Paper 
Bag  Manufacturing). 


1-16-34 
1-27-34 


11-2-33 
1-23-34 


12-21-33 

12-15-33 

1-13-34 

11-2-33 

12-15-33 

1-12-34 
10-31-33 


1-12-34 
12-18-33 


12-18-33 
12-23-33 


1-23-34 


10-20-33 
10-3-33 

12-6-33 


12-15-33 

11-14-33 

1-23-34 

12-18-33 


Volume 


V 
V 


II 
V 


IV 

IV 

V 

II 

IV 
V 

II 


V 
IV 


IV 
IV 


II 
I 

IV 


IV 

III 

V 
IV 


Page 


191 
495 


327 
347 


325 

47 

133 

289 

1 

776 
149 


99 

228 


222 

389 


783 


695 
734 

695 


141 

57 

425 

255 


808 


Industry 


Motion  Picture _ .  _ ^.^  - . - 1 -. J:.!;.L'i:4. i'^^.3>!:::;_:,-uii.i.. ._!,•;, 

Motion  Picture  Laboratory  _•__■ 

Motor  Bus -  - .: -  _^--  ^y-—  _  ^  _•-  - . . 

Motor  Fire  Apparatus  Manufacturing 

Motor  Robe  Division — See  (Light  Sewing  Industry 
Except  Garments). 

Motor  Vehicle  Retailing  Trade .  _  v 

Motor  Vehicle  Storage  and  Parking  Trade 

Moulding,     Finished— Division — See     (Picture 
Moulding  and  Picture  Frame). 

Moulding,  Picture- — and  Picture  Frame ._-. 

Moulding,    Raw — Division — See    (Picture    Mould- 
ing and  Picture  Frame).  • 
Musical,  Legitimate  Full  Length  Dramatic  and- — 

Theatrical ...... 

Musical  Merchandise  Manufacturing 

Mutual  Savings  Banks . ---^__. 

Napkin,  Sanitary — and  Cleansing  Tissue 

National  Industrial  Recovery  Act 

Providing  for  notice  of  proceedings  and  mat- 
ters in  the  administration  of  the 

Administration  of 

Authorizing  Administrator  to  modify  agree- 
ments entered  into  or  approved  by  the  Pres- 
ident under  Title  I  of  the 

Exemption  from  the  President's  Reemploy- 
ment Agreement  of  employers  in  towns  less 

than  2,500  population 

Procedure  to  be  followed  for  tariff  relief  under 

section  3  (E)  of  the 

Establishment   and    use   of    Official — Bulletin 

Board 

Rules  and  regulations  concerning  labels  bear- 
ing Emblems  or  Insignia  of  the 

Newsprint 

Nipple,  Pipe — Manufacturing 

Non-Ferrous  Foundry 

Non-Ferrous,   Miscellaneous — Sand  Castings  Sup- 
plement   

Notion,  Millinery  and — Bag  Division- — See  (Paper 

Bag  Manufacturing). 
Notion,  Thread  &  Women's  Garments  Division — 
See  (Wholesaling  or  Distributing  Trade). 

Nottingham  Lace  Curtain 

Novelties,  Plated  Toiletware  and 

Novelties,  Sterhng 

Novelty     Curtains,     Draperies,     Bedspreads    and 

Novelty  Pillow 

Novelty   Jewelry,   Men's — Division — See  (Whole- 
saling or  Distributing  Trade). 
Nozzle,  Sleeve — ,  and  Runner  Brick  and  Tuyeres. 

Office  Equipment  Manufacturers 

Official,    Establishment  and  use  of — N.R.A.   Bul- 
letin Board 

Oil— See  (Petroleum). 

Oil  Burner 

Amendment,  No.  1 

Optical  Manufacturing 

Organ,  Pipe 

Outerwear,  Knitted 

Overhead  costs.  Temporary  approval  of  method  of 
determining — for — See  (Buildings  Supply  Trade). 


11-27-33 

9-7-33 

10-31-33 

11-8-33 


10-3-33 
12-7-33 


1-16-34 


11-1-33 
12-23-33 
12-23-33 

11-1-33 


12-18-33 
11-4-33 

1-6-34 

9-18-33 
10-3-33 
10-9-33 
1-16-34 
12-18-33 


III 
I 
II 
II 


I 
III 


8-16-33 
1-16-34 
10-9-33 
1-12-34 
6-16-33 

I 
V 

I 
V 

I 

12-21-33 
8-10-33 

IV 

I 

11-22-33 

III 

10-23-33 

II 

10-23-33 

II 

1-6-34 

V 

1-17-34 
11-17-33 
11-27-33 
12-18-33 

V 

III 
III 

IV 

12-18-33 

IV 

II 

IV 
IV 

II 


IV     255 
II      413 


I 

I 

I 

V 

IV 


809 


Industry 


Packaged     Fuel,      Charcoal     and^Division^ — Sec 
(Wholesaling  or  Distributing  Trade).' 

Packaging'  Machinery •- 

Packing,  Canning  and — Machinery — See  (Canning 

and  Packing  Machinery). 
Padding,    Covered   CSrpet — Division — See  ■  (Oght 

Sewing  Industry  Except  Garments). 
Pad,  Table — Division — See  (Light  Sewing  Industry 
Except  Garments). 

Paint,  Varnish,  and  Lacquer  Manufacturing- _ 

Pajama  Manufacturers  temj^orarily  placed  under 

the  Cotton  Textile  Industry -i- ■-_ 

Paper  and  Pulp ^V-  J—  ^ 

Paper  Bag  Manufacturing 

Banana  and  Dry  Cleaner  or  Garment  Delivery 

Bag  Division _i.i-_'ii. 

Coffee  Bag  Division__-_-_  — _  — . 

Glassine  Bag  Division ._..  — ._. 

Grocery  Bag  Division 

Millinery  and  Notion  Bag  Division 

Moth  Proof  Paper  Products  Division 

Shopping  Bag  Division 

Wholly  or  Semi-Hand  Made  Bag  Division 

Window-Face  Bag  Division 

Paperboard  Manufacturers 

Paper  Distributing  Trade 

Paper,  Folding — Box 

Paper  Making  Machine  Builders 

Paper,      Moth      Proof — Products      Division — See 
(Paper  Bag  Manufacturing). 

Paper,  Set  Up — Box  Manufacturing 

Paper  Stationery  and  Tablet  Manufacturing 

Paper,  Wall — Division — See  (Wholesaling  or  Dis- 
tributing Trade). 

Paper,  Waxed 

Parking  Trade,  Motor  Vehicle  Storage  and 

Parts,  Automotive — and  Equipment  Manufactur- 
ing  


Peanut,  Raw— Milling 

Permanent    Mold,    Aluminum — Castings    Supple- 
ment  

Personnel,  Authorization  of  Administrator  to  ap- 
point— ,  fix  compensations  and  conduct  hearings. 

Petroleum 

Administration  given  to  Secretary  of  Interior,.- 
Prohibition    of    Transportation    of    L^nlawful 

Production 

Prohibition    of    Transportation    of    Unlawful 

Production 

Petroleum  Equipment  Industry  &  Trade  (American). 

Pewter,  Chromium  Plate,  and   Miscellaneous 

Photo-Engraving 

Photographic  Mfg 

Piano  Manufacturing 

Picture    Frame,    Empty — Division — See    (Picture 

Moulding  and  Pictvire  Frame). 
Picture     Frame,     Fitted — Division — See     (Picture 
Moulding  and  Picture  Frame). 

Picture,  Motion 

Picture,  Motion — Laboratory 

Picture  Moulding  and  Picture  Frame 

P^mpty  Picture  Frame  Division 

Finished  Moulding  Division 


10-31-33 


10-31-33 

7-26-33 
11-17-33 
1-26-34  I 

1-26-34  I 

■  1-26-34 

1-26-34 

1-26-34 

1-26-34 

-26-34 

-26-34 

-26-34 

-26-34 

11-8-33 

12-23-33 

12-30-33 

12-7-33 


12-18-33 
12-30-33 


12-18-33 
12-7-33 

11-8-33 
1-12-34 

12-18-33 

7-15-33 
8-19-33 
8-29-33 

7-11-33 

7-14-33 
11-2-33 
12-23-33 
12-23-33 
8-19-33 
11-4-33 


11-27-33 

9-7-33 

1-16-34 

1-16-34 

1-16-34 


II 


ri 

I 

III 

V 

V 
V 
V 
V 
V 
V 
V 
V 
V 

II 

IV 

IV 

III 


IV 
IV 


II 

V 
IV 


187 


169 

723 
115 
461 

475 
476 
477 
478 
479 
480 
481 
483 
482 
537 
375 
591 
543 


243 

559 


IV      233 

III      577 


599 
99 

224 


V  763 
I  147 
I      730 

I      713 

I  I  714 

II  I  339 

IV  I  389 

IV  !  429 

I  I  209 
II  I  435 


III 

215 

I 

299 

V 

175 

V 

175 

V 

175 

810 


PictuiR  M'OTildifl^  and  Pictuc^^rjune-^Con. 

Fitted  PictUi-e  Frame  Division—-. V 

Metal,  aad  Metal-  Ecaizxe  Divisioa 

Raw  Moulding  Division 

Piece  Goods  Selling  Division — See  (Wool  Textile 

Amendment,  No.  1). 
Pillow,   Novelty  Curtain,   Draperies,  Bedispreads, 

and  Novelty 

Pipe,  Cast  Iron  Pressure 

Pipe,  Cast  Iron  Soil 

Pipe,  Concrete — Manufacturing 

Pipe  Nipple  Mfg 

Pipe  Organ 

Pipe,  Smoking — Manufacturing 

Pipe,  Vitrified  Clay  Sewer — Mfg 

Planning  and  Fair  Practice  Agency  for  Shipbuilding 

and  Ship  repairing  Industry 

Plastic  Refractories 

Plated  Flatware 

Plated  Hollow  Ware 

Plated  Toiletware  and  Novelties 

Playthings,  Toy  and 

Plug,  Wood-  _  _■ 

Plumbago  Cruicible 

Plumbing,    Enameled    Cast    Iron — Fixtures    Divi- 
sion— See  (Plumbing  Fixtures). 

Plumbing  Fixtures 

Enameled  Cast-Irou  Plumbing  Fixtures  Divi- 
sion   

Sanitary  Brass  Plumbing  Fittings  Division 

Sanitary  Seats  Division 

Vitreous  China  Plumbing  Fixtures  Division ._ 

Amendment,  No.  1 

Polish,  Furniture  and  Floor  Wax  and 

Polisliing,  Buffing  and — Composition 

Polishing,  Dry  and — Mop  Manufacturing 

Polishing  Wheel,  Buff  and — Industry 

Polish,  Shoe  and  Leather  Finish, — ,  and  Cement 

Manufacturing 

Porcelain  Breakfast  Furniture  Assembling 

PorceLain,  Cliinaware  and — Manufacturing 

Powder  Puff 

Powers,     Delegating    further    functions     and — to 

the  Administrator  for  Industrial  Recovery 

Precious  Jewelry  Producing 

President's  Reemployment   Agreement  exempting 
employers  in  towns  of  less  than  2,500  population 
President's    Reemployment    Agreement    Modifica- 
tion   

Pressed  Glassware  Division — See  (American  Glass- 
ware) . 

Pressure,  Cast  Iron — Pipe 

Printer's  Rollers 

Printing,  Emergency  requirement  as  to  further 
limitation  of  hours  of — machine  operation  in  the 
Finishing  Branch  of  the  Cotton  Textile  Industry. 
Printing,  Further  limitation  of  hours  of — Machine 
operation  in  the  Finishing  Branch  of — See  (Cot- 
ton Textile  Industry). 

Printing,  Rayon  &  Silk  Dying  and 

Printing,  Silk  and  Rayon  Dyeing  and- — Industry, 
temi)orary  code  api)royed 


Date 

Volume 

1-16-34 

V 

1-16-34 

V 

1-16-34 

V 

11-1-33 

II 

12-30-33 

IV 

9-7-33 

I 

12-30-33 

IV 

11-27-33 

III 

1-16-34 

V 

1-23-34 

V 

11-27-33 

III 

9-22-33 

I 

12-18-33 

IV 

12-23-33 

IV 

12-23-33 

IV 

12-23-33 

IV 

11-4-33 

II 

11-14-33 

III 

10-23-33 

II 

1-13-34 

V 

1-13-34 

V 

1-13-34 

V 

1-13-34 

V 

1-13-34 

V 

1-31-34 

V 

1-23-34 

V 

11-4-33 

II 

12-15-33 

IV 

11-4-33 

II 

12-30-33 

IV 

1-30-34 

V 

11-27-33 

III 

1-17-34 

V 

12-30-33 

IV 

11-27-33 

III 

10-23-33 

11 

10-3-33 

I 

12-30-33 

IV 

11-8-33 

II 

12-18-33 

IV 

12-21-33 

IV 

7-22-33 

I 

811 


Industry 


173 

168 
181 
183 


127 


Procedure  to  be  followed  for  tariff  relief  under 
Section  3  (e)  ot  Ihe  National  Industrial  Recov- 

erj-  Act 

Pfoceedings,  Providing  for  notice  of — and  matters 
in  the  administration  of  the  National  Indirstrial 

Recovery  Act 

Processing,  Taxtile 

Productive  machinery  operation,  Stay  of  Code 
provisions  as  to — for  the  Cotton  Textile  In- 
dustry  

Proofing,  Automobile  Fabrics, — and  Backing  Di- 
vision   

Providing  for  notice  of  proceedings  and  matters  in 
the  administration   of  the   National   Industrial 

Recovery  Act 

Provisions,  Exemption  of  members  from  certain — 
of  Article  XI,  pending  modification — See   (Ce- 
ment Industry). 
Provisions,    Granting   limited    exemption    from — 
of  Codes  of  Fair  Competition  in  connection  with 

sales  to  Hospitals 

PuflF,  Powder 

Pulp,  Paper  and 

Pump,  Gasoline — Manufacturing 

Pump  Manufacturing 

Pyrotechnic  Manufacturing 

Quilting  Division — See  (Light  Sewing  Industry 
Except  Garments). 

Radio  Broadcasting 

Radio  Division — See  (Wholesaling  or  Distributing 

Trade) . 
Railway  Brass  Car  and  Locomotive  Journal  Bear- 
ings and  Castings  Manufacturing 

Railway  Safety  Appliance 

Rainwear  Division 

Raw  Moulding  Division — See  (Picture  Moulding 
and  Picture  Frame). 

Raw  Peanut  Milling 

Rayon  and  Silk  Dyeing  and  Printing 

Raj'on  and  Synthetic  Yarn  Producing 

Rayon,  Silk  and- — Dyeing  and  Printing  Industry, 

temporary  code  approved 

Rayon,  Temporary  placing  of — Weaving  Industry 

under  the  Cotton  Textile  Industry 

Recovery,  Delegating  further  functions  and  powers 

to  the  Administrator  for  Industrial 

Recovery,  Providing  for  notice  of  proceedings  and 
matters  in  the  administration  of  the  National 

Industrial — Act 

Refining,  Smelting  and — of  Secondary  Metals  into 

Brass  and  Bronze  Allo\'s  in  Ingot  Form 

Refractories 

Refrigerator,  Commercial 

Refrigerator,  Household  Ice 

Regulations  for  registration  of  machinery  and  filing 
of  monthly  reports  in  Finishing,  Thread  Manu- 
facturing and  Yarn  Mercerizing  Branches  of  the 

Cotton  Textile  I  nd  ustry 

Regulations,  Rules  and — concerning  labels  bear- 
ing Emblems  or  Insignia  of  the  N.R.A 

Reinforcing  Materials  Fabricating 

Relief,  Temporarj' — under  Article  XI,  Section  (b) 
for  —  See  (Cotton  Garment  Industry). 


10-23-33 


12-21-33 
1-30-34 


7-30-33 
12-15-33 

12-21-33 


1-23-34 

1-17-34 

11-17-33 

9-18-33 

10-11-33 

12-17-33 


11-27-33 


1-29-34 

1-12-34 

12-15-33 


1-12-34 
12-21-33 

8-26-33 

7-22-33 

7-14-33 

12-30-30 

12-21-33 

12-21-33 
12-18-33 
12-23-33 
12-30-33 


1-15-34 

1-17-34 
11-27-33 


Volume 


II 


IV 
V 


IV 
IV 

IV 


V 
V 

III 
I 
I 

III 


III 


V 

V 

IV 


V 
IV 

I 
I 
I 

IV 

IV 

IV 
IV 
IV 
IV 


V 

III 


812 


Industry 


Date 


20 


Reports,  Regulations  for  registration  of  machinery 
and  filing  of  monthly — in  Finishing,  Thread 
Manufacturing  and  Yarn  Mercerizijig  Branches 
of — See  (Cotton  Textile  Industry). 
Requirement,  Modification  of  emergency — as  to 
limitation  of  houi's  of  machine  operation  in  the 
Carded  Yarn  Group  of — See  (Cotton  Textile 
Industry) . 

Retail  Drug  Trade. .. 

Retail  Farm  Equipment  Trade 

Retail  Food  and  Grocery  Trade ^- 

Retail  Food  and  Grocery  Trade — labor  provisions- 
Retailing,  Motor  Vehicle — Trade 

Retail  Jewelry  Trade . . 

Retail  Lumber,  Lumber  Products,  Building  Mate- 
rials, and  Building  Specialties 

Amendment,  No.  1 

Temporary  modification  of  method  of  comput- 
ing costs  for  the — Industry 

Retail  Trade 

Extension  of  effective  date 

Stay  of  Minimum  wage  provisions  as  to  outside 
salesmen  and  drug  store  delivery  employees 

for  the 

Temporary  exception  for  members  under  Arti- 
cle V,  Section  4  (D)  and  6 

Revision — Bituminous  Coal 

Reworked     Wool     Division — See     (Wool     Textile 
Amendment,  No.  1). 

Road  Machinery  Manufacturing 

Robe  and  Allied  Products 

Robe,  Motor — Division — See  (Light  Sewing  Indus- 
try Except  Garments) . 

Rock  Crusher  Manufacturing 

Rollers,  Printers' 

Rolling,  Steel  and — Mill  Castings  Supplement 

Rolling  Steel  Door 

Roofing,  Asphalt  Shingle  and — Manufacturing 

Roofing,  Slate — Division — See  (Slate). 

Rubber  Flooring  Division 

Rubber  Footwear  Division 

Rubber,  Hard — Division 

Rubber  Mamifacturing 

Rubber,  Mechanical — Goods  Division 

Rubber,  Sponge — Division 

Rubber  Sundries  Division 

Rubber  Tire  Manufacturing 

Rug,  Carpet  and — Manufacturing 

Rules   and   regulations   concerning  labels   bearing 

Emblems  or  Insignia  of  tlie  N.R.A 

Runner  Brick,  Sleeve,  Nozzle,  and — Tuj'eres 

Saddlery  Manufacturing 

Safety,  Railway — Appliance 

Sales,  Granting  limited  exemption  from  provisions 
of  Codes  of  Fair  Competition  in  connection  with — 

to  Hospitals 

Salesmen,  Stay  of  Minimum  wage  provisions  as  to 
outside- — and  drug  store  delivery  emploj'ees  for 

the  Retail  Trade 

Salt  Producing 

Sand,     Administrative     approval     of     Industrial — 
Division  of  the  Crushed  Stone,  Sand  and  Gravel, 
and  Slag  Industries 


10-21-33 
1-6-34 
12-30-33 
11-15-33 
10-3-33 
11-27-33 

10-3-33 
1-12-34 

1-5-34 
10-21-33 
11-27-33 


11-8-33 

1-18-34 
9-29-33 


10-31-33 

1-16-34 


11-1-33 

11-8-33 

12-18-33 

12-21-33 

11-6-33 

12-15-33 
12-15-33 
12-15-33 
12-15-33 
12-15-33 
12-15-33 
12-15-33 
12-21-33 
1-12-34 

1-17-34 

12-18-33 

10-3-33 

1-12-34 


1-23-34 


Volume 


Page 


11-8-33 
9-7-33 

12-27-33 

II 

V 
IV 

III 

I 

III 

I 

V 
V 

II 
III 


IV 
V 

I 


II 

V 


II 
II 

IV 
IV 

II 

IV 
IV 
IV 
IV 
IV 
IV 
IV 
IV 
V 

V 
IV 

I 

V 


IV 

I 


IV      707 


813 


Code 

No. 

Industry 

Date 

i 

Volume 

Page 

109 

Sand,   Crushed   Stone — and   Gravel  and  Slag   In- 

dustries                      -                -    - 

11-10-33 

II 

641 

Sanitary   Brass   Plumbing   Fittings   Division — See 

(Plumbing  Fixtures). 

Sanitary  Seats  Division — See  (Plumbing  Fixtures). 

, 

Sand,  Miscellaneous  Non-Ferrous — Castings  Sup- 

i!" .• 

plement 

12t18-33V 

IV 

222 

200 

Sanitary  Napkin  and  Cleansing  Tissue 

1-12-34. 

,'"v 

59 

169 

Savings,  Building  and  Loan  Associations 

12-21-33 

IV 

279 

52 

Savings,  Mutual — Bank 

10-9-33 

I 

623 

191 

Scavenger,  Cinders,  Ashes,  and — Trade 

School    Supplies    Division — See    (Wholesaling    or 
Distributing  Trade). 

12-30-33 

IV 

569 

114 

Scientific  Apparatus 

Scientific      Glassware     Division — See     (American 

Glassware) . 
Scourers,    Wood — and    Carbonizers    Division— See 

(Wool  Textile  Amendment,  No.  1). 

11-14-33 

III 

31 

112 

Screen,  All-Metai  Insect 

Seats,    Sanitary — Division — See     (Plumbing    Fix- 
tures). 

11-14-33 

III 

9 

173 

Secondary,  Smelting  and  Refining  of — Metals  Into 

Brass  and  Bronze  Allovs  In  Ingot  Form 

12-21-33 

IV 

325 

Selling,  Piece  Goods — Division — See  (Wool  Textile 

Amendment,  No.  1). 

167 

Set  Up  Paper  Box  Manufacturing 

12-18-33 

IV 

243 

136 

Sewer,  Vitrified  Clay — Pipe  Manufacturing 

11-27-33 

III 

445 

226 

Sewing,  Light — Industry  Except  Garments 

Sheeting,  Temporary  limitation  of  hours  of  machine 
operation    in    the    Wide    Bed — Group    of — See 
(Cotton  Textile  Industry). 
Sheet   Metal   Division — See   (Wholesaling  or   Dis- 
tributing Trade). 

1-23-34 

V 

403 

99 

Shingle,  Asphalt — and  Roofing  Manufacturing 

11-6-33 

II 

523 

2 

Shipbuilding  and  Shiprepairing 

7-26-33 

I 

25 

Amendment,  No.  1 

10-10-33 

I 

vol 

Shirting    Division — See    (Cotton    Textile    Supple- 

ment, No.  1). 

184 

Shoe    and    Leather    Finish,    Polish,    and    Cement 

Manufacturing 

12-30-33 
10-3-33 

IV 

I 

485 

44 

Shoe,  Boot  and 

541 

Shopping   Bag   Division — See   (Paper  Bag   Manu- 

facturing). 

10? 

Shovel,  Dragline  &  Crane 

11-8-33 
12-18-33 

II 

IV 

563 

Silica  Refractories 

255 

Silk   and    Ravon    Dyeing  and   Printing   Industry, 

tem})orary  code  approved 

7-22-33 

I 

718 

}7? 

Silk,  Rayon  and — Dyeing  and  Printing 

12-21-33 

IV 

311 

Silk,  Temporary  placing  of — Industry    under    the 

Cotton  Textile  Industry      _      _          -      

7-15-33 
10-7-33 

I 

I 

20 

48 

Silk  Textile                          "               _.-      .-.--.-- 

587 

Silk    Textile,    Curtailment    of   machine   hours   for 

the — Industry 

12-23-33 

IV 

705 

Silverware    Division — See    (Wholesaling    or    Dis- 

tributing Trade). 

177 

Silverware  Manufacturing             _    _        

12-23-33 

IV 

389 

194 

Skirt,  Blouse  and — Manufacturing   __      

12-30-33 

IV 

605 

Slag,  Administrative  approval  of  Industrial  Sand 

Division  of  the  Crushed  Stone,  Sand  and  Gravel, 

and — Industries                     _.            --      

12-27-33 
11-10-33 

IV 

II 

707 

109 

Slag,  Crushed  Stone,  Sand  &  Gravel,  and — Industry. 

641 

?1K 

Slate                                                       --    

1-22-34 
1-22-34 

V 
V 

29'/ 

Blackboard  Slate  Division 

297 

814 


Industry 


Volume 


Slftt^CpRtiaue4.  i  4-^^ 

SFMe  Koofing  Division 

Structural  and  Electrical  Division 

Sleeve,  Nozzle,  and  Runner  Brick  and  Tuyeres 

Slide  Fastener 

Slit  Fabric  Manufacturing 

Smelting  and  Refining  of  Secondary  Metals  Into 

Brass  and  Bronze  Alloys  in  Ingot  Form 

Smoking  Pipe  Manufacturing 

Soap  and  Glycerine  Manufacturing 

Sole,  Heel  and — Division 

Southern  division,  Allocation  of   States   to  the — 

under  the  Cotton  Garment  Industry 

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

Industry 

Special  Refractories 

Specialties,  Cork  Composition  and  Cork — Manu- 
facturing Division — See  (Cork). 

Special  Tool,  Die  and  Machine  Shop 

Specialty,  Advertising 

Spinners,    Carded — Division — See    (Wool    Textile 

Amendment,  No.  1). 
Spinners,   Worsted — Bradford  System,   Division — 

See  (Wool  Textile  Amendment,  No.  1). 
Spinners,   Worsted — ,   French    System,   Division — 
See  (Wool  Textile  Amendment,  No.  1). 

Sponge  Rubber  Division 

Sprinkler,  Automatic 

Stationery,  Paper — and  Tablet  Manufacturing 

Statistical,  Central — Board,  Appointment  of 

Statistical,  providing  for  submission  of — informa- 
tion by  persons  subject  to  codes 

Stay,    Disapproval   of  exception   and   termination 
of— under  the  code  of  fair  competition  for  the 

Cotton  Textile  Industry 

Stay  for  the  Dress   Manufacturing  Industry  and 

Cotton  Garment  Industry 

Staj'  for  the  Hotel  Industry 

Stay  of  code  provisions  as  to  productive  machinery 

operation  for  the  Cotton  Textile  Industry 

Stay  of  effective  date  of  Article  VIII  for  Bankers. 

Staj'  of  minimum  wage  provisions  as  to  outside 

salesmen  and  drug  store  delivery  emploj^ees  for 

the  Retail  Trade 

Stay    of    wage-hours    provisions    for    the    Hotel 

Industry 

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

Industry 

Stay,  Temporary — of  Articles  III,  IV,  and  V  for 

the — See  (Furniture  Manufacturing  Industry). 
Stay,  Temporary — of  Article  IV,  Section  3  for  the — 

See  (Millinery  Industry). 
Stay,  Temporary — of  Article  XI  for — See  (Cement 
Industry). 

Steel  and  Rolling  Mill  Castings  Supplement 

Steel  Casting 

Steel,  Iron  and 

Steel,  Rolling — Door 

Steel  Tubular  and  Firebox  Boiler 

Stereotyping,  Electrotyping  and 

Sterling  Flatwear 


1-22-34 

V 

1-22-34 

V 

2-18-33 

IV 

1-31-34 

V 

1-16-34 

V 

2-21-33 

IV 

1-23-34 

V 

11-2-33 

II 

2-15-33 

IV 

12-30-33 


12-20-33 
12-18-33 


11-17-33 
10-31-33 


12-15-33 
10-9-33 

12-30-33 
7-27-33 

12-7-33 


11-6-33 

12-14-33 
12-29-33 

7-30-33 
12-11-33 


11-8-33 
12-2-33 

12-30-33 


12-18-33 
11-2-33 
8-19-33 
12-21-33 
10-23-33 
12-23-33 
12-23-33 


IV 


IV 
IV 


III 
II 


IV 

I 

IV 

I 
III 


IV 

IV 
IV 

IV 
IV 


IV 
IV 

IV 


IV 

II 
I 

IV 

II 

IV 
IV 


815 


Industry 


37 


61 


Sterling  Hollow  Ware 

Sterling  Novelties 

Sterling  Toiletware 

Stock  Exchange  Firms 

Stopper,       Cork — Manufacturers       Division — See 

(Cork). 
Stick,  Mop 

Stone,  Administration  approval  of  Industrial  Sand 
Division  of  the  Crushed — ■,  Sand  and  Gravel,  and 

Slag  Industries 

Stone,    Crushed — -,    Sand    and    Gravel,    and    Slag 

Industries 

Stone  Finishing  Machinery  and  Equipment 

Storage,  Business  Furniture — ,  Equipment  and  Fil- 
ing SuppW 

Storage,  Electric — and  Wet  Primary  Battery 

Storage,  Motor  Vehicle — ^and  Parking  Trade 

Structural  &  Electrical  Division — -See  (Slate). 

Structural  Clay  Products 

Sugar,  Beet — Labor  provision 

Suit,  Coat  and 

Denial — (See  Coat  and  Suit). 

Sundries,  Rubber — Division 

Supplement: 

Automobile  Manufacturing,  No.  1. 

Funeral  Vehicle  and  Ambulance  Subdivision. 

Cotton  Textile,  No.  1  (Cotton  Converting) 

A!l-Cotton  Clothing  Linings  Division 

Clothiers'  Linings  Division 

Corset,  Brassiere  &  Allied  Trades  Fabrics 

Division 

Curtain  &  Drapery  Fabrics  Division 

Interlinings  Division 

Shirtings  Division 

Wash  Goods  Division 

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

Fabricated  Metal  Products  Manufacturing  and 
Metal  Finishing  and  Metal  Coating,  No.  2 

(For  Hand  Chain  Hoist  Manufacturing) 

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  Manufac- 
turing)   

Supplies,  Beauty  and  Barber — Division — See 
(Wholesaling  or  Distributing  Trade). 

Supplies,  Builders' — Trade 

Supplies  Division — See  (Wholesaling  or  Distribut- 
ing Trade). 

Supplies,  Electrical — Division — See  (Wholesaling 
or  Distributing  Trade). 

Supplies,  Furriers' — Division — See  (Wholesaling  or 
Distributing  Trade). 

Supplies,  Industrial — And  Machinerv  Distributors 
Trade 

Supplies,  School — Division — See  (Wholesaling  or 
Distributing  Trade). 

Supplies,  Woolen  and  Trimming  Garment — ^Di- 
vision— See  (Wholesaling  or  Distributing  Trade). 


Date 


12-23-33 

12-23-33 

12-23-33 

11-4-33 


11-14-33 


12-27-33 

11-10-33 
12-15-33 

11-4-33 
10-3-33 
12-7-33 


Volume 


IV 
IV 
IV 

II 


III 


IV 

II 

IV 

II 

I 

III 


11-27-33 

10-27-33 

8-4-33 

III 
II 

I 

12-15-33 

IV 

11-  8-33 
1-24-34 
1-24-34 
1-24-34 

II 
V 
V 
V 

1-24-34 
1-24-34 
1-24-34 
1-24-34 
1-24-34 

V 
V 
V 
V 

1-10-34 

V 

1-30-34 

V 

1-31-34 

V 

1-31-34 

V 

10-3-33 

I 

10-23-33 

II 

47 


816 


Industry 


Supply,   Business   Furniture,   Storage  Equipment, 

and  Filing 

Supply,  Funeral 

Surgical  Dressings 

Suspended  Walls  and  Arches 

Suspender,  Men's  Garter — and  Belt  Manufactur- 
ing— See  (Men's  Garter,  Suspender,  and  Belt 
Manufacturing) . 

Synthetic,  Rayon  and — Yarn  Producing 

Table,    Blown — Glassware   Division — See    (Ameri- 
can Glassware). 
Table  Pad  Division — See  (Light  Sewing  Industry 
Except  Garments). 

Tablet,  Paper  Stationery  and — Manufacturing 

Tackle,  Fishing 

Tank,  Metal 

Tariff,  procedure  to  be  followed  for — relief  under 

Section  3  (e)  of  the  N.I.R.A 

Technical  and  Industrial  Glassware  Division — See 

(American  Glassware). 
Temporary: 

Approval  of  method  of  determining  overhead 

costs  for  the  Building  Supplies  Trade 

Changes  of  Article  IV  for  the  Hosiery  Industry 
Exception  for  members  of  the  Retail  Trade 

under  Article  V,  Section  4  (d)  and  6 

Hours  modification  for  the  Leather  and  Woolen 

Knit  Glove  Industry 

Limitation  of  hours  of  machine  operation  in 
the  Combed  Sales  Yarn  Group  of  the  Cotton 

Textile  Industry 

Limitation  of  hours  of  machine  operation  in 
the  Wide  Bed  Sheeting  Group  of  the  Cotton 

Textile  Industry 

Limitation  of  machine  operation  of  the  Combed 
Thread  Producers  Group  of  the  Cotton 
Textile  Industry  in  respect  of  the  production 

of  Combed  Yarn 

Limitation  of  machine  operation  of  the  Mer- 
cerizers  Group  of  the  Cotton  Textile  Industry 
in  respect  of  the  production  of  Combed  Yarn_ . 
Modification  of  method  of  computing  costs  for 
the  Retail  Lumber,  Lumber  Products,  Build- 
ing    Materials     and     Building     Specialties 

Industry 

Placing  of  Cotton  Thread  Industry  under  the 

Cotton  Textile  Industry 

Placing  of  Rayon  Weaving  Industry  under  the 

Cotton  Textile  Industry 

Placing   of   Silk    Industry    under   the    Cotton 

Textile  Industry 

Placing  of  Throwing  Industry  under  the  Cot- 
ton Textile  Industry 

Relief  under  Article  XI,  Section   (b)   for  the 

Cotton  Garment  Industrv 

Stay  of  Articles  III,  IV,  and  V  for  the  Furni- 
ture Manufacturing  Industry 

Stay  of  Article  IV,  Section  3,  for  the  Millinery 

Industry 

Stay  of  Article  XI  for  the  Cement  Industry ._. 
Termination,    Disapproval    of    exception    and — of 
stay  under  the  code  of  fair  competition  for  the 

Cotton  Textile  Industry 

Terra  Cotta  Manufacturing 


Date 


11-4-33 

11-4-33 

1-27-34 

12-18-33 


8-26-33 


12-30-33 

8-19-33 

12-15-33 

10-23-33 


1-8-34 
12-14-33 

V 
IV 

1-18-34 

V 

12-6-33 

IV 

1-10-34 

V 

1-23-34 

V 

1-10-34 

V 

1-10-34 

V 

1-5-34 

V 

7-16-33 

I 

7-14-33 

I 

7-15-33 

I 

7-14-33 

I 

1-27-34 

V 

1-12-34 

V 

1-12-34 
1-5-34 

V 
V 

11-6-33 
10-31-33 

IV 

II 

Volume 


II 

II 

V 

IV 


IV 

I 

IV 

II 


817 


Industry 


Textile  Bag 

Amendment,  No.  1 

Textile,  Cotton  (See  Cotton  Textile) 

Textile,  Ciu'tailment  of  machine-hours  for  the 
Silk- — Industry 

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

Cotton — Industry 

Textile,  Emergencj-  requirement  as  to  further  limi- 
tation of  hours  of  machine  operation  in  Carded 

Yarn  Group  of  the  Cotton — Industry 

Textile,  Emergency-  requirement  as  to  further  limi- 
tation of  iiours  of  printing  machine  operation  in 
the  Finishing  Branch  of  tlie  Cotton — Industry^. 
Textile  Finishing,  Temporarily  placed  under  Cot- 
ton Textile  Industry 

Textile,  Further  extension  of  time  for  certain  manu- 
facturers to  elect  not  to  be  bound  under  the  code 
of  fair  competition  for  the  Upnolstery  and  Dia- 

pery — Industry 

Textile,  Limitation  of  machine-hours  for  the  Cot- 
ton— Industry 

Textile  Machinery  Manufacturing 

Textile,  Millinery  and  Dress  Trimming  Braid  and_ 

Textile  Processing 

Textile,  Silk 

Textile,  Stay  of  code  i)rovisions  as  to  productive 
machine! V  operation  for  the  Cotton — Industrv__ 
Textile,  Wool— See  (Wool  Textile). 
Theatrical,  Legitimate  Full  Length  Dramatic  and 

Musical 

Thiead,    Notion — and    Women's    Garments    Divi- 
sion— See  (Wholesaling  or  Distributing  Trade). 
Thread,  Regulations  for  registration  of  machinery 
and    filing   of    monthly    reports    in    Finishing — 
Manufacturing  and  Yarn  Mercerizing  Branches 
of — See  (Cotton  Textile  Industry). 
Thread,  Temporary  limitation  of  machine  opera- 
tion of  the  Combed — Producers  Group  in  respect 
of  the  production  of  Com})ed  Yarn — See  (Cotton 
Textile  Industry). 
Thread,  Temporary  placing  of  Cotton — Industry 

under  the  Cotton  Textile  Industry 

Throwing 

Throwing,  Temporary  placing  of — Industry  under 

the  Cotton  Textile  Industry 

Tile,  Asphalt  and  Mastic 

Tile,  Cork  Floor — Manufacturers'  Division — See 
(Cork). 

Tile,  Floor  and  Wall  Clay — Manufacturing 

Timber,  Lumber  and — Products 

Amendments,  etc.      (See  Lumber  and  Timber 
Products). 

Tire,  Ru!)i)er — Manufacturing 

Tissue,  Sanitary  Napkin  and  Cleansing 

Toiletware,  Plated — and  Novelties 

Toiletware,  Sterling 

Tool,      Machine — and     Equipment      Distributing 

Trade 

Tool,  Maclvine — and  Forging  Machinery 

Tool,  Special — Die  and  Machine  Shop 

Topmakers'  Division — See  (Wool  Textile  Amend- 
ment, No.  1). 


Date 


9-18-33 

12-23-33 

7-9-33 

12-23-33 

11-6-33 

12-15-33 

12-18-33 
7-21-33 

12-11-33 

12-2-33 
10-3-33 
10-31-33 
1-30-34 
10-7-33 

7-30-33 
8-16-33 


7-16-33 
10-11-33 

7-14-33 
12-7-33 


11-4-33 
8-19-33 


12-21-33 

1-12-34 

12-23-33 

12-23-33 

11-27-33 

11-8-33 

11-17-33 


Volume 

I 
IV 
I 

IV 
IV 

IV 


IV 


Page 

361 

671 

1 

705 


685 
703 
704 


I      716 


IV 

IV 
I 

II 

V 

I 

IV 


I 
I 

I 
III 


II 
I 


IV 
V 

IV 
IV 

III 

II 

III 


818 


Industry 


Toy  and  Playthings 

Trade,  Retail  and  Retail  Drug 

Transit 

Transport,  Air 

Trapping,  Fur — Contractors 

Trimming,  Drapery  and  Upholstery 

Trinnning,  Millinery  and  Dress — Braid  and  Tex- 
tile  1 

Trinnning,  Woolen  and — Garment  Supplies  Divi- 
sion— See  (Wholesaling  or  Distributing  Trade). 
Truck,    Electric    Industrial — Manufacturing- — See 
(Fabricated  Metal  Products  Manufacturing  and 
Metal  Finishing  and  Metal  Coating) . 

Tubular,  Steel — and  Firebox  Boiler 

Tumbler,     Automatic — Glassware     Division — See 
(American  Glassware). 

Tuyeres,  Sleeve,  Nozzle,  and  Runner  Brick  and 

Twine  and  Cordage  Division — See  (Wholesaling  or 

Distributing  Trade) . 
Twine,    Cordage    and — temporarily    placed    under 

Cotton  Textile  Industry 

Modification  of  Ex.0,  of  July  27,  1933,  placing 
Cordage  and   Twine   Industry  temporarily 

under  Cotton  Textile  Industry 

Umbrella  Manufacturing 

Underwear  and  Allied  Products  Manufacturing — 
Temporarily    placed    under    Cotton    Textile 

Industry 

Stay  Extended 

Upholstery    &    Decorative    Fabrics    Division — See 
(Wholesaling  or  Distributing  Trade). 

Upholstery  and  Drapery  Textile 

Further  extension  of  time  for  certain  manu- 
facturers to  elect  not  to  be  bound  under  the 

code  of  fair  competition  for  the 

Upholstery,  Drapery  and — Trimming 

Valve  and  Fitthigs  Manufacturing 

Varnish,  Paint — and  Lacquer  Manufacturing 

Vehicle,  Motor — Retailing  Trade 

Vehicle,  Motor— Storage  and  Parking  Trade 

Velvet 

Venetian  Blind 

Vitreous  China  Plumbing  Fixtures  Division— See 
(Plumbing  Fixtures). 

Vitrified  Clay  Sewer  Pipe  Manufacturing 

Wage,    Stay    of — hour    provisions    for    the    Hotel 

Industry 

Wage,  Stay  of  minimum — provisions  as  to  outside 
salesmen  and  drug  store  delivery  employees  for 

the  Retail  Trade 

Wall,  Floor  and— Clay  Tile 

Wall    Paper    Division — See    (Wholesaling   or    Dis- 
tributing Trade). 

Wall  Paper  Manufacturing 

Amendment,  No.  1 

Walls,  Suspended — and  Arches 

Wall  Structure,  Metallic — Industrial  Subdivision — 
See  (Fabricated  Metal  Products  Manufacturing 
and  Metal  Finishing  and  Metal  Coating). 

Wareliousing,  Merchandise — Trade 

Warm  Air  Furnace  Manufacturing 

Warps,      Cotton- — Division — See      (Wool     Textile 
Amendment,  No.  1). 


11-4-33 
10-21-33 

9-18-33 
11-14-33 
12-15-33 

1-16-34 

10-31-33 


10-23-33 


12-18-33 


7-27-33 


10-30-33 
10-9-33 
9-18-33 

7-21-33 
10-20-33 


11-27-33 


12-11-33 
1-16-34 

12-15-33 

10-31-33 
10-3-33 
12-7-33 

12-30-33 
1-24-34 


11-27-33 
12-2-33 


11-8-33 
11-4-33 


9-7-33 
12-30-33 
12-18-33 


1-27-34 
11-27-33 


Volume    Page 


II 

II 

I 

III 

IV 
V 

II 


II 


IV 


II 
I 
I 

I 
II 


III      259 


IV 
V 

IV 

II 

I 

III 

IV 
V 


III 
IV 


IV 
II 


I 
IV 
IV 


V 
III 


819 


Industry 

Wash  Goods  Division — See  (Cotton  Textile  Supple- 
ment, No.  1). 

Washing  and  Ironing  Machine  Manufacturing 

Waste,  Machined — Manufacturing 

Watch  Case  Manufacturing 

Waterproofing,  Dampproofing,  Caulking  Com- 
pounds, and  Concrete  Floor  Treatments  Manu- 
facturing   

Waxed  Paper 

Wax,  Furniture  and  Floor — and  Polish 

Wear     Buttons,     Men's — Division — See     (Whole- 
saling or  Distributing  Trade). 
Weaving,  Temporary  placing  of  Rayon — Industry 

under  the  Cotton  Textile  Industry 

Wet  Mop  Manufacturing 

Wheel,  Buff  and  Polishing 

Wheel,  Grinding 

Wholesale  Automotive  Trade 

Wholesale  Food  and  Grocery  Trade 

Wholesale     Food     and     Grocery     Trade- — Labor 

provisions 

Wholesaling  or  Distributing  Trade 

Beauty  and  Barber  Supplies  Division 

Buttons  Division 

Charcoal  and  Packaged  Fuel  Division 

Cycle  Jobbers  Division 

Dry  Goods  Division 

Electrical  Supplies  Division 

Embroidery  and  Lace  Division 

Floor  Covering  Division 

Furriers'  Supplies  Division 

H ardware  Division 

Hats  and  Caps  Division 

Jewelry  Division 

Men's  Novelty  Jewelry  Division 

Men's  Wear  Buttons  Division 

Notion,     Thread,     and    Women's     Garments 

Division 

Radio  Division 

School  Supplies  Division 

Sheet  Metal  Division 

Silverware  Division 

Supplies  Division 

Twine  and  Cordage  Division 

Upholstery  and  Decorative  Fabrics  Division.. 

Wall  Paper  Division 

Woolen    and    Trimming    Garment    Supplies 

Division 

Wholly  or  Semi-Hand    Made   Bag   Division — See 

(Paper  Bag  Manufacturing). 
Wide  Bed  Sheeting,  Temporary  limitation  of  hours 
of   machine   operation   in    the — Group    of — See 
(Cotton  Textile  Industry). 
Window    Face    Bag    Division — See    (Paper    Bag 
Manufacturing) . 

Window,  Metal 

Wire  Covering,  Knitting,  Braiding  and — Machine 

Women's  Belt 

Women's  Garments,   Notion,   Thread  and — Divi- 
sion— See  (Wholesaling  or  Distributing  Trade). 
Women's    Wear,     Carded — Division — See     (Wool 

Textile  Amendment,  No.  1). 
Women's    Wear,    Worsted — Division — See    (Wool 
Textile  Amendment,  No.  1). 

40121—34 12 


Date 

Volume 

11-4-33 

II 

12-7-33 

III 

12-23-33 

IV 

11-27-33 

III 

12-18-33 

IV 

1-23-34 

V 

7-14-33 

I 

1-23-34 

V 

11-4-33 

II 

12-21-33 

IV 

12-18-33 

IV 

1-4-34 

V 

11-15-33 

III 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-12-34 

V 

1-13-34 

V 

10-3-33 

I 

10-3-33 

I 

820 


Industry 


Wood,  End  Grain  Strip — Block 

Wood,  Metal  Hat  Die  and — Hat  Block 

Wood  Plug 

Woolen   and   Trimming    Garment   Supplies   Divi- 
sion— See  (Wholesaling  or  Distributing  Trade). 
Woolen    Goods,     Knitted — Division — See     (Wool 
Textile  Amendment,  No.  1). 

Woolen,  Leather  and — Knit  Glove 

Woolen,    Temporary    hours    modification    for    the 

Leather  and — Knit  Glove  Industry 

Wool  Felt  Manufacturing 

Wool,    Reworked — Division — See    (Wool    Textile 

Amendment,  No.  1). 
Wool     Scourers     &     Carbonizers     Division — See 
(Wool  Textile  Amendment,  No.  1). 

Wool  Textile 

Amendment,  No.  1 

Blankets  Division 

Carded  Men's  Wear  Division 

Carded  Spinners  Division 

Carded  Women's  Wear  Division 

Combers  Division 

Cotton  Warps  Division 

Knitted  Woolen  Goods  Division 

Piece  Goods  Selling  Division 

Reworked  Wool  Division 

Topmakers  Division 

Wool  Scourers  &  Carbonizers  Division 

Worsted  Men's  Wear  Division 

Worsted  Spinners,  Bradford  System,  Div_. 
Worsted  Spinners,  French  System,  Divi- 
sion  

Worsted  Women's  Wear  Division 

Wool  Trade 

Worsted  Men's  Wear  Division — See  (Wool  Te.xtile 

Amendment,  No.  1). 
Worsted   Spinners,    Bradford  System,    Division — 

See  (Wool  Textile  Amendment,  No.  1). 
Worsted  Spinners,  French  System,  Division — See 

(Wool  Textile  Amendment,  No.  1). 
Worsted  Women's  Wear  Division — See  (Wool  Tex- 
tile Amendment,  No.  1). 
Yarn,  Emergency  requirement  as  to  further  limita- 
tion of  hours  of  machine  operation  in  Carded — 

Group  of  the  Cotton  Textile  Industry 

Yarn  Mercerizing,  Regulations  for  registration  of 
machinery  and  filing  of  monthly  reports  in  Fin- 
ishing, Thread  Manufacturing  and — Branches 
of — See  (Cotton  Textile  Industry). 
Yarn,  Modification  of  emergency  requirement  as 
to  limitation  of  hours  of  machine  operation  in 
the  Carded — Group  of — See  (Cotton  Textile 
Industry). 

Yarn,  Rayon  and  Synthetic — Producing 

Yarn,  Temporary  limitation  of  machine  operation 
of  the  Combed  Thread  Producers  Group  in  re- 
spect of  the  production  of  Combed — See  (Cotton 
Textile  Industr}-). 
Yarn,  Temporary  limitation  of  machine  operation 
of  the  Mercerizers  Group  in  respect  of  the  pro- 
duction of  Combed — See  (Cotton  Textile  In- 
dustrj') . 


Date 

Volume 

12-30-33 

IV 

1-23-34 

V 

11-14-33 

III 

11-4-33 

II 

12-6-33 

IV 

11-27-33 

III 

7-26-33 

I 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-23-34 

V 

1-16-34 

V 

12-15-33 

IV 

8-26-33 

I 

o 


-^ 


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