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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 

HUiGB S. JOHNSON, Administrator for Industrial Recovery 



CODES OF FAIR COMPETITION 

Nos. 245-286 
AS APPROVED 

FEBRUARY 1-FEBRUARY 16, 1934 

WITH SUPPLEMENTAL CODES, AMENDMENTS, AND 

EXECUTIVE AND ADMINISTRATIVE ORDERS 

ISSUED BETWEEN THESE DATES 



VOL. VI 




WE DO OUR PART 



UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 



MAY 26 1936 



Ctmrged to credit acct 



CONTENTS 



Industry 



CODES OF FAIR COMPETITION 

Corrugated and Solid Fiber Shipping Container 

Paper Disc Milk Bottle Cap 

Food Dish and Pulp and Paper Place 

Glazed and Fancy Paper 

Tag 

Wire, Rod, and Tube Die 

Witch Hazel . 

Cylindrical Liquid Tight Paper Container 

Animal Soft Hair 

Athletic Goods Manufacturing 

Table Oil Cloth 

Schiffli, the Hand Machine Embroidery, and the Em- 
broidery Thread and Scallop Cutting 

Printing Equipment Industry and Trade 

Cast Iron Boiler and Cast Iron Radiator 

Hat Manufacturing 

Ornamental Moulding, Carving and Turning 

Foundry Supply 

Shoulder Pad Manufacturing 

Machine Knife and AlHed Steel Products Manufacturing 

Foundry Equipment 

Coffee 

Inland Water Carrier Trade in the Eastern Division of 
the United States Operating Via the New York Canal 

System 

Used Textile Bag 

Secondary Aluminum 

Carbon Black Manufacturing 

Wood Heel 

Nonferrous and Steel Convector Manufacturing (Con- 
cealed Radiator Industry) 

Unit Heater and/or Unit Ventilator Manufacturing 

Band Instrument Manufacturing 

Saw and Steel Products Manufacturing 

Chemical Manufacturing 

Pleating, Stitching and Bonnaz and Hand Embroider}-. 

Gray Iron Foundry 1. 

Trucking 

Steam Heating Equipment 

Retail Sohd Fuel 

Laundry Trade 

Restaurant 

Ready-Made Furniture Slip Covers Manufacturing 

Pottery Supplies and Backwall and Radiant 

Railway Car Building 

Beauty and Barber Shop — Mechanical Equipment 
Manufacturing 



(ra) 



Date Ap- 
proved, 1934 


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Feb. 16 



CONTENTS— Continued 



Date 



AMENDMENTS 

Fishing Tackle, No. 1 

Cotton Textile, No. 3 --- 

Glass Container, No. 1 

Investment Bankers, No. 1 

Hosiery, No. 1 

Throwing, No. 1 

Umbrella Manufacturing, No. 1 

Furniture Manufacturing, No. 1 

Hosiery, No. 2 

Funeral Supply, No. 1 

Lime, No. 1 (Dolomite Division) 

Retail Trade, No. 1 - 

Leather, No. 1 

SUPPLEMENT 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 5 (For Railway Car Appliances) 

EXECUTIVE ORDERS 

Continuing in effect the Authority Delegated to the Secretary 
of Agriculture by Executive Order No. 6182 

Rules and Regulations under Section 10 (a) and Delegation of 
Authority under Section 2 (b) of the National Industrial Re- 
covery Act 

Amendment of Executive Orders which Delegated to the Secre- 
tary of Agriculture certain Authority under the National In- 
dustrial Recovery Act 

Continuance of the National Labor Board, Etc 

Amendment of Executive Orders which Delegated to the Secre- 
tary of Agriculture Certain Authority under the National In- 
dustrial Recovery Act 

Enforcement of Section 7 (a) of the National Industrial Re- 
covery Act ; 

Delegation of Authority to Administrator for Industrial Re- 
covery to Prescribe Rules and Regulations 

Delegation of Authority to Administrator for Industrial Re- 
covery to Prescribe Rules and Regulations, Etc 

ADMINISTRATIVE ORDERS 

Approval of exception as to hours of work of watchmen in the 
Fishing Tackle Industry 

Granting Extension of hours exemption in the Shipbuilding 
and Shiprepairing Industry 

Stay of order granting limited exemption from provisions of 
codes of fair competition in connection with sales to hospitals.. 

Approving extension of time for fixing minimum piecework 
rates for home work in the Knitted Outerwear Industry 

Further staying application of subsection (b), Section 1, 
Article IV, to members of the Cotton Cloth Glove Manu- 
facturing Industry in the South 

Rules and regulations governing the posting of labor provisions 
of codes of fair competition 

Approving extension of time within which to comply with con- 
dition of approval in the Surgical Dressing Industry 

Index 



11-14-33 

12-2&-33 

2-1-34 

2-1-34 

2-2-34 

2-2-34 

2-2-34 

2-5-34 

2-5-34 

2-&-34 

2-10-34 

2-12-34 

2-16-34 



2-9-34 

7-21-33 
10-14-33 



10-20-33 
12-16-33 



1-8-34 
2-1-34 
2-8-34 
2-8-34 

10-7-33 
2-1-34 

2-2-34 
2-6-34 

2-6-34 
2-12-34 
2-15-34 



(IV) 



CODES OF FAIR COMPETITION 



Approved Code No. 245 

CODE OF FAIR COMPETITION 

FOR THE 

CORRUGATED AND SOLID FIBRE SHIPPING 

CONTAINER INDUSTRY 

As Approved on February 1, 1934 



ORDER 



Approving Code of Fair Competition for the Corrugated and 
Solid Fibre Shipping Container 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 Corrugated and Solid Fibre Shipping 
Container 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, 
pureuant 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 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 VI, Sections 2 to 9 inclusive, 
insofar as they prescribe a waiting period between the filing with 
the Code Authority (i.e., actual receipt by the Code Authority) and 
the eilective date of revised price lists or revised terms and con- 
ditions of sale be and they are hereby stayed pending my further 
order; provided further, that within ninetj^ daj^s I may direct 
that there be a further hearing on such of the provisions of said 
Code as I may designate, and that any order which I may make 
after such hearing shall have the effect of a condition on the approval 
of said Code. 

Hugh S. Johnson, 
Admi7iistrafor for I ndustrial Recovery. 

Approval recommended : 
Geo. L. Berry, 
Division Administrator. 

Washington, D. C. 

Fehr^ary i, 193J^. 

37400° 313-171 34 (1) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report of the hearing on the Code of Fair Competi- 
tion for the Corrugated and Solid Fibre Shipping Container Indus- 
tr}', conducted in Washington on November 17, 1933, in accordance 
with the jDrovisions of Title I of the National Industrial Recovery 
Act. 

Hours and Wages 

For factory workers, this Code provides a standard work week 
of 40 hours averaged over 5 weeks, but not more than 48 hours in 
any one week, with provision for overtime for all hours in excess 
of nine in one day and forty-five in one week. An allowance is made 
for additional hours for 10 percent of such employees to do cleaning 
and maintenance work which cannot be done while the machines 
are in operation. For office employees the Code specifies a 40-hour 
week averaged over 13 weeks, but not more than 48 hours in any one 
week. Slightl}^ longer hours are permitted for nonproductive 
employees. Night work for women is prohibited. 

The minimum hourl}' wage rates prescribed are 40?i for male fac- 
tory labor and 35^ for female factory labor in the North, and 32^ 
for males and 300 for females in the South, with a proviso that in the 
event that Southern wage rates under the Paper and Pulp Code, 
approved November 17th, 1933, are fixed at a higher figure, as a 
result of action taken pursuant to the Executive order approving 
such Code, the Southern wage rates under this Code shall be raised to 
the same figures. 

Office workers are to be paid a minimum wage of $16 per week in 
the North and $14 per week in the South. 

The usual safeguards for nondiscrimination against female labor 
and for the maintenance of wages above the minimum are provided. 
The only exceptions to the prescribed wage rates are for office boys 
and girls and handicapped workers. 

SHARING OF BUSINESS 

Provision is made whereby members of the Industry may join 
in a voluntary agreement for sharing their business. All such agree- 
ments must be filed with the Administrator, may contain no price- 
fixing provision, and must provide that any member may withdraw 
as a part of such an agreement at will, and without penalty. The 
Administrator may withdraw the right to make or perform such 
agreements at any time. 

OTHER PROVISIONS 

The Code contains the usual provisions for collecting statistics 
and for filing reports with the Administrator. Open price selling 
is authorized and sales below cost, except to meet competition, are 
prohibited. 

ECONOMIC EFFECT OF THE CODE 

The Industry employed in April 1929, 13,200 persons, in April 
1933, 10,800 persons, and in August 1933, 16,400 persons. The last 

(2) 



figure reflects in part the effects of the President's Reemployment 
program, and in part an increase in vohime due to better business 
conditions. Measured by W'-Ji) as a standard, there is no unemploy- 
ment in the Industry. 

In June 1933, 55% of Northern nuilc labor received less than 40^ 
per hour. Female labor was concentrated largely between 200 and 
30^ per hour. In the South, 57% of male labor received between 
20vi and 30^ per hour, and 54% of female labor received less than 
20^ per hour. The effect of the Code will be to increase the Indus- 
tr}^ pay roll in the North by 25% and in the South by 40% over the 
June level. 

riNDIKGS 

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 manage- 
ment under adequate governmental sanctions and supervision, hj 
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 50,000 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 an industrial association truly representative of the aforesaid 
Industrj^; 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 this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dm inis trot on 
February 1, 1934. 



CODE OF FAIK COMPETITION FOE THE CORRUGATED 
AND SOLID FIBRE SHIPPING CONTAINER INDUSTRY 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following is hereby established as a Code of 
Fair competition for the above-named Industry and shall be binding 
on every member thereof: 

Article I — Definitions 

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

"' Industry " — The manufacture of Corrugated and solid fibre 
board and/or the fabrication of the same into shippin containers, 
packing materials, and other similar products. 

" Member " — A natural person, partnership, corporation, associa- 
tion, trust, trustee, tnistee in bankruptcy, or receiver engaged in 
such Industry. 

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

"Administrator " — The Administrator for Industrial Recovery 
under Title I of the Act. 

Article II — Organization and Administration 

1. Seven persons engaged in the Industry to be elected by the 
Board of Directors of the National Container Association, together 
with such other person or persons not more than three in number as 
the Administrator may designate are hereby constituted the Code 
Authority of the Industry. The members of the Code Authority 
designated by the Administrator shall act in an advisory capacity 
and shall have no vote. Temporarily and until the Industry mem- 
bers of the Code Authority are eleced, the Members of the Executive 
Committee of such Association shall be the Industry members of the 
Code Authority. Industry members of the Code Authority shall 
serve for one year, or until their successors are elected. 

2. The said Association shall file Avith the Administrator certified 
copies of any amendments of its Bylaws relating to eligibility or 
admission to membership in such Association, or relating to the 
method of selection of the members of such Board of Directors, 
which such Association may hereafter adopt. 

3. The Administrator may at any time, in order to effect proper 
representation of the Industry, prescribe a different method for 

(4) 



selectino; the Industry members of the Code Authority, and there- 
after such members shall be chosen in the manner so prescribed. 

4. The Code Authority is charged generally with the duty of ad- 
ministering this Code under the sanction and with the approval of the 
Administrator. All acts of the Code shall be subject to review by 
the Administrator and to suspension, or cancellation by him in any 
case in which he shall determine that any such act violates the pur- 
poses of the National Industrial Recovery Act. 

5. Nothing contained in this Code shall constitute the members 
of the Code Authority partners for any purpose. Nor shall any 
member of the Code Authority be liable in any manner to anyone 
for any act of any other member, officer, agent, or employee of the 
Code Authority. Nor shall any member of the Code Authority, exer- 
cising reasonable diligency in the conduct of his duties hereunder, be 
liable to anj^one for any action or omission to act under this Code, 
except for his own willful misfeasance of nonfeasance. 

6. The expenses of administering this Code shall be borne pro 
rata, in accordance with a formula to be adopted by the Code Au- 
thority, b}' all members of such Industry who accept the benefit of 
the services of the Code Authority or otherwise assent to this Code. 

7. The Code Authority shall have powder to investigate alleged 
violations of this Code and acts or courses of conduct by any member 
which are or appear to be contrary to the policy of the Act or which 
tend or may tend to render ineffective this Code and to report the 
same with recommendations to the Administrator. 

8. The Code Authority may divide the country into geographical 
divisions for the purpose of administering this Code. 

9. The Code Authority may appoint a Divisional Committee for 
each such geographical division and may delegate to such Committees 
such of its powers and duties it shall deem necessary for the proper 
administration of this Code under the sanction and with the approval 
of the Code Authority. 

Article III — Hours of Labor 

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

SCHEDULE OF WORKING HOURS 

(a) Watchmen. — 56 hours in any one week, but not more than 6 
days in any T-day period. 

(b) Ghcmffeurs and truckmen. — 192 hours in any period of 4 con- 
secutive weeks, provided, however, that time worked in excess of 10 
hours in any one da^^ and 48 hours in any one week shall be paid 
for at not less than time and one third. 

(c) Engineers, firemen.^ and electricians. — 168 hours in any period 
of 4 consecutive weeks, provided, however, that all time worked in 
excess of 10 hours in any one day and 48 hours in any one week 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 xoork connected with the opera- 
tion of such plant, mill, w factory. — An average of 40 hours per 



week in each successive period of 5 consecutive weeks, but not more 
than 48 hours in any one week, provided, however — 

(1) that not more than 10% of such employees may exceed such 
average when engaged in machine cleaning and maintenance and 
routine plant cleaning work, which cannot be done while the 
machines are in operation, and 

(2) that all time worked in excess of 9 hours in any one day (or in 
excess of 10 hours when the last hour of such 10 hours falls within 
subsection (1) hereof) shall be overtime, and that all time worked 
in excess of 45 hours in any one week (or in excess of 48 hours when 
the last three hours of such 48 hours fall within subsection (1) here- 
of) shall be overtime, and 

(3) that all such overtime shall be paid for as not less than time 
and one third, but this subdivision shall not be so construed as to 
require paj-ment for the same hours of overtime more than once. 

(e) Executives and their personal secretaries and other employees 
engaged in a supervisory capacity receiving $36.00 or more per week 
and outside salesmen. — No limitation. 

(f ) All other employees. — An average of 40 hours per week over 
any period of 13 consecutive weeks, but not more than 48 hours in 
an,y one week. 

2. No limitation contained in said Schedule shall apply to em- 
ployees of any class when engaged in emergenc}' repairs or emer- 
gency maintenance work occasioned by breakdowns or involving 
protection of life or property, provided, hovcever, 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. 

3. No employee shall be permitted to work for two or more mem- 
bers of the industry an aggregate number of hours in excess of the 
number prescribed in said Schedule. 

4. Female employees of the class described in subdivision (d) of 
Section 1 of this Article shall not be required or permitted to work 
between the hours of ten p.m. and six a.m. 

Article IV — Wages 

1. The minimum rate of wage of any laborer, mechanical worker, 
or artisan employed in any plant, mill, or factory or on work con- 
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 — 

Male Labor, 40 cents per hour. 
Female Labor, 35 cents per hour. 

(b) In the Southern zone, which shall consist of the States of 
Virginia, Tennessee, North Carolina, South Carolina, Georgia, 
Florida, Alabama, Mississippi, Louisiana, x\rkansas, Texas, and 
Oklahoma — 

Male labor, 32 cents per hour. 
Female labor, 30 cents per hour. 

2. In the event that the wages for labor in the Southern zone (as 
such zone is described in the Code of Fair Competition for the Paper 



and Pulp Industry approved by the President of the United States 
by Executive Order dated November 17th, 198H) shall be increased 
in accordance with reconiniendations made by the Administrator 
and approved by the President pursuant to the provisions of such 
Executive Order, then and in such event the wages of labor in the 
Southern zone (as such zone is described in the Code) shall be 
deemed to have been changed to conform thereto and the Adminis- 
trator ni!iy direct that this Code, as so amended, be reprinted and 
republished. 

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

4. The minimum rate of wages for all other employees 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, $14.00 per 
week. 

5. Female employees performing substantially the same work as 
male employees shall receive the same rate of pay as male employ- 
ees. The Code Authority shall, within 90 days after the effective 
date of this Code, file with the Administrator a description of all 
occupations in the Industry in wdiich both men and women are 
employed. 

6. The wage rates of all em{)loyees receiving more than the mini- 
mum rates herein prescribed shall be reviewed and such adjustments, 
if any, made therein as are equitable in the light of all the circum- 
stances, and within sixty (60) days after the effective date hereof, 
the Code Authority shall rej^ort to the Administrator the action 
taken by all members of the Industry under this section. 

7. Office boys and girls under 18 years of age, to the extent of 
not more than 5% of the total number of employees described in 
Section 4 hereof, may be employed at a wage of not less than 80% 
of the minimum prescribed by said Section, provided that at least 
one such office boy or girl may be emploj^ed by each establishment. 

8. A person whose earning capacity is limited because of age 
or physical or mental handicap may be employed on light work at 
a wage of not less than 80% of the minimum 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. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the Industiy. 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 



8 

age certificates or permits showing that tlie 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 sucli representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. No em- 
ployee and no one seeking employment shall be required as a condition 
of employment to join any company union or to refrain from join- 
ing, organizing, or assisting a labor organization of his own choosing. 
Employers shall comply with the maximum hours of labor, minimmn 
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 emploj'Ces, 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. 

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 (G) 
months after the effective date of this Code. 

7. No provision in this Code shall supersede provisions as to hours, 
wages, and conditions of emplojmient which are established for spe- 
cific projects by competent governmental authority acting in accord- 
ance 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. 

8. The Code Authority shall make a study of conditions in the in- 
dustry 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 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 employment. 

9. The manufacture or partial manufacture of any product of the 
Industry in the home of a worker shall be prohibited. 

Article VI — Accounting and Selling 

1. The Code Authority shall, as soon as practicable, formulate a 
standard method of accounting and costing for the industry and 
submit the same to the Administrator. When it shall have been 
approved by the Administrator, every member shall use an account- 



9 

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 Industry 
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 mem- 
bers of the Industry who manufacture such products not less than 
30 days prior to the date so fixed. 

3. At least ten days 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 
filed a schedule conforming in respect to price and terms of sale with 
the schedule at any time on file which 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 necessaiy to permit 
any interested person to determine the exact net price per unit after 
all discounts or other deductions have been made, whether pertaining 
to a single order, a commitment for future delivery, or a contract. 
For the purpose of making comparable the schedules of different 
members relating to products ordinarily sold on price estimates, the 
Code Authority may prescribe a basic unit or units in terms of which 
the price of materials used in the manufacture of such products 
shall be stated in all price schedules. 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 geo- 
graphical divisions created as provided in Section 8 of Article II 
hereof. 

5. A revised schedule, or a new schedule, or a noice of withdrawal 
of a schedule may be filed by 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 on 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, who manufacture any particular product, with copies of 
all schedules, revised schedules, and notices of withdrawal, which 
pertain to such product. Immediately upon receipt of information 
relative to the withdrawal of a price for any product, any member 
may file notice of withdrawal of his own price for the same product 
effective as of the same date as the notice of withdrawal of such 
other member. Immediately on receipt of information that a 
schedule 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 member, 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, 



10 

he shall be deemed to have filed a revised schedule conforming to 
the revised schedule of such other member. 

7. Xo such schedule of prices and terms of sale filed by any mem- 
ber, or in efi'ect at any time, shall be such as to permit the sale of 
any product at less than the cost thereof to such member determined 
in the manner provided in Section 11 hereof, provided, however, 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. Xo member who shall have filed a price, or adopted as his own, a 
price filed by another member for any product of the Industry, shall 
sell such product for less than such price or upon terms or condi- 
tions more favorable than stated in such price schedule. No mem- 
ber, who shall have failed to file a price for any product 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 any price schedule for such product then 
on file. 

9. The Code Authority shall, upon request, furnish at cost to 
nonmembers copies of any price schedules which have been filed 
with it. Such price schedules shall be made available to nonmembers 
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 purjDOse of this Article, shall be determined 
pursuant to the method of accounting and costing prescribed as pro- 
vided 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 rules as the Code Authority 
shall from time to time prescribe with the approval of the Adminis- 
trator, provided, however, that, for the purposes of this section, 
under any accounting and costing method which may be used, cost 
shall include the current delivered market price of materials whether 
purchased or manufactured by the member. 

12. For the purpose of determining whether Sections 7 and 10 
hereof have been complied with, every member shall upon the request 
of the Code Authority furnish a designated agency of the Code 
Authority', in respect to closed transactions only, with complete in- 
formation in regard to any quotation, order, contract, or sale of any 
product of the industry^ including information as to specifications, 
quantities, price, conditions of storage, transportation or delivery, 
terms of billing, cash or trade discounts allowed, and other per- 
tinent facts relating to such quotation, contract, or sale. 

13. Nothing herein contained shall be construed to prevent the 
disposition of distress merchandise, required to be sold to liquidate 
a defunct or insolvent business or accumulated through errors in 
manufacture or failure of the original purchaser to accept, in sucli 
manner, at such price, and such terms and conditions as the Code 
Authority may apjorove. 



n 

14. Nothing heroin contained shall he construed to prevent the 
fulfillment of a bona fide contract existing on the effective date of 
this Code.^ 

Article VII — Voluntary Sharing or Business 

1. With the approval of the Code Authority, members of the In- 
dustry may join in a voUintary agreement for the sharing of their 
business on such basis as they may determine provided, however, that 
any member becoming a party to such an agreement, may withdraw 
therefrom at any time without penalty, and, provided, further, that 
no such agreement shall contain any provision relative to price fix- 
ing. The Code Authority shall file with the Administrator a copy 
of every such agreement. 

2. The Administrator may at any time declare the foregoing sec- 
tion void and of no effect. 

Article VIII — Eeports and Statistics 

1. Each member shall prepare and file with an impartial agent 
designated by the Code Authority at such times and in such manner 
as it may prescribe, such statistics, data, and information relating 
to plant capacity, volume of production, volume of sales in units 
and dollars, orders received, unfilled orders, stocks on hand, inven- 
tory both raw and finished, number of employees, wage rates, em- 
ployee earnings, hours of work, and other matters as the Code Au- 
thority or the xVdministrator may from time to time require. Any 
or all information so furnished by any member shall be subject to 
checking for the purpase of verification by an examination of the 
books and accounts and records of such member by any disinter- 
ested 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 the Code shall be confidential and the statistics, 
data, and information of one member shall not be revealed to an- 
other member. 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. The Code 
Authority shall arrange in such manner as it may determine for the 
current publication of industry statistics to members. 

3. Each member shall, within 30 days after the effective date of 
this Code, file w^ith the Code Authority a list of all his productive 
equipment used in this Industry and immediately on disposing of 
any of such equipment or on acquiring any new productive equip- 
ment for use in this industry shall report the same to the Code 
Authority. 

4. The Code Authority shall make such reports to the Administra- 
tor as he may from time to time require. 

5. In addition to information required to be submitted to the Code 
Authority there shall be furnished to Government Agencies such 

^ See paragraph 2 of order approving this Code. 



12 

statistical information as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the Act. 

Article IX — Recommexdations 

1. The Code Authority may, from time to time, present to the Ad- 
ministrator 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 alono; the following lines : 

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

(b) For the establishment of a standard method for determining 
the current cost of any product of the Industry. 

(c) For the establishment of terms and conditions regarding sales 
to dealers and distributors by Members of the Industry. 

(d) For the establishment of plans to equalize production with 
demand. 

(e) For the establishment of a plan and method for the sharing 
of available business equitably among members of the Industry. 

(f) For the registration of productive equipment and regulation 
of the installation of new productive equipment. 

(g) For an increase or decrease in the number of Industry mem- 
bers of the Code Authority and/or for a change in the method of 
choosing such members. 

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

Article X — Trade Practices 

1. The following Trade Practice Rules heretofore adopted by the 
Industry and approved by the Federal Trade Commission in 1929 
(Including the notes of said Commission appended to several of 
such rules), are hereby made a part of this Code, and failure to 
comply with the provisions thereof shall be a violation of this Code. 

Rule 1. Interference with Contracts. — Including or attempting 
to induce the breach of a contract between a competitor and his cus- 
tomer during the term of such contract is an unfair method of 
competition. 

NoTE.^ — Whenever notice of the existence of a contract is brought to the 
attention of any person in any way, he shall promptly discontinue all efforts 
which might induce a contracting party to break such contract. 

Rule 2. Defamation of Competitors. — The defamation of a com- 
petitor by words or acts which untruthfully call in question his busi- 
ness integrity, his ability to perform his contracts, his credit stand- 
ing, or the grade, quality, or count of his goods, is condemned as 
unfair competition. 

Rule 3. Threats of Suit for Patent or Trade-Mark Infringe- 
ment. — The circularization of threats of suit for infringement of 
patent or trade mark among customers of a competitor, not made 
in good faith, but for the purpose of harassing and intimidating 
customers, is an unfair trade practice. The owner of a patent or 



13 

trade mark should, in fairness, deal directly with the allowed original 
infringer rather than attempt to intimidate his customers. 

Rule 4. False Bmiid'nig. — The certification of corrugated and 
solid fiber boxes as complying fully with the published rules of the 
carriers, when in fact such is not the case, misleads the buyer, 
deceives the consumer, and is condemned as unfair competition. 

Note. — The rules of the carrier relating to fiber-box specifications 
are contained in the following tariffs published under authority of 
the Interstate Commerce Commission : 

Consolidated Freight Classification No. 5 : 
I.C.C. O.C. 49 (Official). 
I.C.C. 18 (Western). 
I.C.C. 23 (Southern). 
Official Express Classification No. 30 (I.C.C. 3280). 
Agent B. W. Dunn's Tariff No. 1 (I.C.C. No. 1). 

These rules require that solid-fiber and corrugated boxes used in 
interstate commerce must comply with certain tests and specifications 
as prescribed in the published schedules of the carriers. They fur- 
tlier require that all such boxes used in interstate commerce bear 
the certification of the box maker reciting that the box in question 
complies with such rules. It is in the interest of this industry and of 
the consuming public that these published rules be strictly complied 
with. 

Rule 5. False Certl-fi cation. — The certification of corrugated and 
solid fiber boxes, as required by the published schedules of the car- 
riers, by others than the box makers Avho actually made the boxes, 
deceives the carriers and the consuming public as to the name of the 
actual maker of the box, and is condemned as unfair competition. 

Rule 6. Underbidding hy Offering InfeHor Products. — The mis- 
representation of paperboard or boxes in respect to size, style, caliper, 
bursting strength, substance, or quality is condemned as unfair com- 
petition. 

NoTEJ. — Producers asked to submit on furnished samples or on definite speci- 
fication sometimes submit bids on inferior samples or inferior specifications, 
and at the same time lead the prospective purchaser to believe that the product 
which they propose to furnish is equal to the submitted sample or equal to the 
box or material described in the specifications. 

Rule 7. Sales Without Mutuality. — Contracts of sale which permit 
the buyer to cancel or provide for a reduced price in the event of a 
market decline and which do not permit the seller to cancel or pro- 
vide for an enhanced price in the event of a market rise are lacking 
in mutualit}^ and tend to induce controversy and breach of contract, 
and are therefore condemned as unfair competition. 

Rule 8. D%unping in Remote Markets. — The practice of certain 
manufacturers and sellers of shipping quantities of merchandise into 
territories outside their normal territories, and of selling such mer- 
chandise below the general market prevailing in such other territories 
into which shipments are made, seriously tends to demoralize the 
market Avithin the territories into which shipments are made, disrupts 
normal competitive conditions throughout the entire industry, and is 
condemned as an unfair trade practice. 

Rule 9. Over Runs and Under Runs. — The delivery of over rims 
of paper board or boxes free of charge, or at a concession in price, 



14 

results in price discrimination as between customers, and is con- 
demned as unfair competition. 

Note. — In the practical operalimi of a papeiboard mill or box plant it is 
economically impossible to till an order for any specitic quantity of paperboard 
or boxes without there being some over runs or under runs. For this reason 
it is the established custom of the trade to permit a reasonable variation either 
way in making actual deliveries, the customer paying for the quantity actually 
delivered, whether reasonably more or less than the quantity specified in the 
contract. 

Rule 10. Free ^\'arehou8'nig. — It is the judgment of this industry 
that all quoted prices should be on the basis of delivery upon comple- 
tion of manufacture. If the buyer requests a postponement of the 
shipment beyond the date originally specified, a separate charge shall 
be made to cover the full cost of warehousing the goods. Any viola- 
tion of this rule results in price discrimination as between customers, 
and is condemned as unfair competition. 

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 work or process incidental to, and carried on by a member 
at his plant as a part of the manufacture of any product of the 
industr}', shall be regarded as a part of this industry. 

3. The provisions of this Code shall aj^ply to those Members who 
manufacture the products of the industry for their own consumption 
as well as to those who manufacture for sale. 

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 President 
of the United States, be modified and eliminated as changes in cir- 
cumstances or experience may indicate. 

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. 

G. 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. 245. 
Registry No. 406-1-08. 



O 



Approved Code No. 246 
CODE OF FAIR COMPETITION 

FOR THE 

PAPER DISC MILK BOTTLE CAP INDUSTRY 

As Approved on February 1, 1934 



ORDER 



Approving Code of Fair Competition for the Paper Disc Milk 
Bottle Cap 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, 1938, for approval of a 
Code of Fair Competition for the Paper Disc Milk Bottle Cap 
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 : 

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 
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 VI. sections 2 to 9, 
inclusive, insofar as they prescribe a waiting period oetween 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 pending my further 
order; provided further that Avithin ninety days I may direct that 
there be a further hearing on such of the provisions of said Code as 
I may designate and that an}' order which I may make after such 
hearing shall have the effect of a condition on the approval of 
said Code. 

Hugh S. Johnson, 
Administrator for Industrial Recovet^. 

Approval recommended : 
Geo. L. Berry, 

Division A dministrator. 

Washington, D.C, 

February 1. 193Jf. 

37405° 313-172 34 (15) 



REPORT TO THE PRESIDENT 

The President, 

The 'White House. 

Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Paper Disc Milk Bottle Cap Industry, conducted in 
Washington on November 27. 1933. in accordance with provisions 
of Title I of the National Industrial Recovery Act. 

HOURS AND WAGES 

This Code provides a standard 40-hour week for factory workers 
with a weekly tolerance of eight 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 an eight-week period. 

The minimum wage in the North for hourly paid employees is 40^ 
per hour for males and 35c per hour for females. In the South the 
minimum wage rate for hourly paid employees is 350 per hour for 
males and 300 per hour for females. Office employees will receive 
a minimum wage of $16.00 per week in the North and $14.00 per 
week in the South. 

OPEN PRICE PLAN 

An open price plan of selling is provided, and selling below cost, 
except to meet competition, is prohibited. 

OTHER PROVISIONS 

Provision is made for furnishing the Administrator with such 
statistical data as he may require. 

ECONOMIC EFFECT OF THE CODE 

The Industry employed about 450 people in 1929. Figures sub- 
mitted by 12 of the 23 plants in the Industry show about the same 
number of employees in March 1929 and in March 1933 at wdiich 
time over 63% of the employees worked 45 hours per week or 
longer. The effect of the Code will be to employ about 90 addi- 
tional persons. 

In March 1933, 34% of the male labor received less than 400 
per hour and 98% of the female labor less than 350 per hour. The 
total increase in pay rolls as a result of the Code will be approxi- 
mately 7.5%. 

(16) 



17 

Findings 

The Deputy Administrator in his final report to me on said Code 
havintr 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 com- 
merce 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 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 
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. 

(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, 

A dmimstrator. 
February 1, 1934. 



CODE OF FAIR COMPETITION FOE THE PAPER DISC 
MILK BOTTLE CAP INDUSTRY 

To eifectuate the policies of Title I of the National Industrial Re- 
covery Act, the following is hereby established as a Code of Fair 
Competition for the above-named Industry and shall be binding on 
every member thereof. 

Article I — Definitions 

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

" Industry "' — The manufacture of Paper Disc Milk Bottle Caps. 

" Member " — A natural person, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, or receiver engaged in such 
Industry. 

'*Act " — Title I of the National Industrial Recovery Act. 
"Administrator " — The Administrator for Industrial Recovery under 
Title I in the Act. 

Article II — Organization and Administration 

1. There shall forthwith be constituted a Code Authority of the 
Paper Disc Milk Bottle Cap Industry which shall comprise five (5) 
members. Three (3) of such members shall be elected annually by 
the members of the National Association of Bottle Cap Manufac- 
turers, and one (1) shall be elected annually by the members of the 
Industry, not members of said Association. One (1) additional 
member shall be appointed by the four (4) members so elected. In 
addition the Administrator may appoint one (1) or more persons 
to the Code Authority who shall act in an advisory capacity, shall 
have no vote, and shall serve without compensation from the 
Industry. 

2. In order to carry out the election of the Industry members of 
the Code Authority in an orderly and proper manner, the following 
procedure is prescribed: Manager of said Association or Chairman 
of the Executive Committee of said Association shall send all mem- 
bers of the Industry, including nonmembers as well as members of 
the Association, notice of a meeting for the purpose of electing mem- 
bers of Code Authority, such notice shall be sent out at least ten 
days in advance of such election date. Each nonmember of the 
Association shall be entitled to one vote for one member of the Code 
Authority to represent members of the Industry who are not mem- 
bers of the Association. Each Association member shall be entitled 
to vote for three members of the Code Authority. Each voter shall 
be a member or a duly authorized representative of a member. No 

(18) 



19 

member of the Industry will be allowed to cast th© vote of another 
member of the Industry by proxy. In the event nonmembers of the 
Association fail to elect a representative on the Code Authority, the 
Administrator may appoint such representative. 

3. The said Association shall impose no inequitable restrictions 
on membership and shall file with the Administrator certified copies 
of any amendments of its By-Laws, relating to eligibility or admis- 
sion to memberehip in such Association, or relating to the method 
of selection of the members of such Code Authority which such Asso- 
ciation may hereafter adopt. 

4. The Administrator may at any time prescribe a different 
method for selecting the Industry members of the Code Authority, 
and thereafter, such members shall be chosen in the manner so 
prescribed. 

5. The Code Authority is charged generally with the duty of ad- 
ministering this Code. 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 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 not 
be effective unless the Administrator approves or unless he shall 
fail to disapprove after thirty days' notice to him of intention to 
proceed with such action in its original or modified form. 

6. 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 the Industry who accept the benefit 
of the services of the Code Authority or otherwise assent to this 
Code. 

7. The Code Authority shall have power to investigate alleged 
violations of this Code and acts or courses of conduct by any member 
which are or appear to be contrary to the policy of the Act or which 
tend or may tend to render ineffective this Code and to report the 
same with recommendations to the Administrator. 

8. The Code Authority is hereby constituted the agency to en- 
deavor to effect, by arbitral proceedmgs or otherwise, adjustments of 
contracts entered into by members of the Industry, where the costs 
of executing such contracts are increased through the application of 
the provisions of the Act or of this Code. 

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 sched- 
ules: 

SCHEDULE OF WORKING HOURS 

(a) Watchmen: Fifty-six (56) hours in any one week, but not 
more than six (6) days in any seven (7) day period, or fifty-six 
(56) hours in any one week, but not more than eight (8) hours in any 
one day. 



20 

(b) Chauffeurs, truckdrivers, and their helpers: One hundred 
eighty (180) hours in any period of four (4) consecutive weeks, 
provided, however, that time worked in excess of nine (9) hours in 
an}' one day or forty-five (45) hours in any one week shall be paid 
for as not le&s than time and one third. 

(c) Engineers, firemen, electricians, filter plant employees, elec- 
tric and hydroelectric operators: One hundred sixty-eight (168) 
hours in any period of four (4) consecutive weeks, provided, how- 
ever, that time worked in excess of nine (9) hours in any one day or 
forty-five (45) hours in any one week 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: Eight (8) hours in any one day 
and forty (40) hours in any one week, provided, however, that these 
maximum limits may be exceeded for any reason at any time provided 
that all time worked in excess of the maximums prescribed shall 
be paid for as not less than time and one third, and provided, fur- 
ther, that no employee shall be required or permitted to work in 
excess of ten (10) hours in any one day or forty-eight (48) hours in 
any one week. 

(e) Employees regularly engaged in a managerial or executive 
capacity and their personal secretaries, foremen and supervisors, 
receiving thirty-five ($35.00) dollars or more per week, outside sales- 
men and outside servicemen : No limitation. 

(f) All other employees: Forty-eight (48) hours in any one week 
but not to exceed three hundred twenty (320) hours in any period 
of eight (8 ) consecutive weeks. 

2. No limitation contained in said schedule shall apply to employ- 
ees of any class when engaged in emergency repairs or emergency 
maintenance work occasioned by breakdowns or involving protection 
of life or property, provided, however, that all time worked in 
excess of the limitations prescribed in said schedule shall be paid 
for as not less than time and one third. 

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 in this Industry, exceeds the maxi- 
mum permitted herein. 

Article IV — Wages 

1. The minimum rate of wage of any laborer, mechanical worker 
or artisan employed in any plant, mill, or factory or on work con- 
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 the terri- 
tory of the United States except the States named in subdivision 
(b) hereof: 

Male labor, 40 cents per hour. 
Female labor, 35 cents per hour. 



21 

(b) In the Sonthorn zone, which shall consist of the States of 
Virginia, Teimessee, North Carolina, South Carolina, Georgia, Flor- 
ida, Alabama, MississipjM, Louisiana, Arkansas, and Texas: 

Male labor, 35 cents per hour. 

Female labor, 30 cents per hour. 

2. The minimum rates of wages for all other employees 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 Sectioii^ $14.00 per 
week. 

(c) Part-time employees covered by the provisions of this section, 
shall be paid at the rate of not less than 40^ per hour in the North 
and 3;")^ per hour in the South. 

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, or other basis. 

4. Female employees performing substantially the same work as 
male employees shall receive the same rate of pay as male employees. 
The Code Authority shall within 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. 

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

6. Office boys and girls under 18 years of age, to the extent of no 
more than 5% of the total number of employees described in Section 
2 hereof, may be employed at a wage of not less than 80% of the 
minimum prescribed by said Section provided that at least one such 
office boy or girl may be employed by each member. 

7. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a 
wage 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. 
The provision of this Section requiring a certificate of authority 
shall not become effective until sixty days after the effective date 
of this Code. 

Article V — GE]srERAii 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 
emplo3'ed 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 



22 

age if lie 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, sho^Ying that the employee is of the 
required age. 

2. Emploj^ees shall have the right to organize and bargain collec- 
tively through representatives of their own choosing, and shall be 
free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. No 
employee and no one seeking employment shall be required as a 
condition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of his 
own choosing. Employers shall comply with the maximum hours 
of labor, minimum rates of pay, and other conditions of employment, 
approved, or prescribed by the President. 

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

4. No employer shall reclassify emploj^ees 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 emploj^ers shall post copies of Article III, IV, and V of this 
Code in conspicuous places accessible to emploj^ees. 

6. Every employer shall make reasonable provisions for the safety 
and health of his emploj^ees at the place and during the hours of 
their employment. Standards for safety and 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 
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 (G) months after the effective date of this Code, a plan for the 
stabilization and regularization of employment. 

9. The manufacture or partial manufacture of any product of the 
Industry in homes shall be prohibited. 

Article VI — Accounting — Selling 

1. The Code Authority shall, as soon as practicable, formulate 
a standard method of accounting and costing for the industry and 
submit the same to the Administrator. When it shall have been 



23 

approved by the Admini.strator, every member shall use an account- 
ing and costing system which conforms to the principles of, and 
is at least as detailed and complete as, such standard method. 

2. 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 days 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 
filed a schedule conforming in respect to price and terms of sale with 
the schedule at any time on file which 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 pertaining 
to a single order, a commitment for future delivery, or a contract. 
All such original schedules shall become effective on the date fixed 
by the Code Authority as provided in Section 2 hereof. 

5. A revised schedule or schedules, or a new schedule or schedules, 
or a notice of withdrawal of a schedule previously filed, may be filed 
by a member with the Code Authority at any time, provided, how- 
ever, tiiat any member who withdraws a schedule without substitut- 
ing 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 on 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 who manufacture any particular product with copies of all 
schedules, revised schedules and notices of withdrawal, which per- 
tain to such product. Immediately upon receipt of information rela- 
tive to the withdrawal of a price for any product, any member may 
file notice of withdrawal of his own price for the same product ef- 
fective as of the same date as the notice of withdrawal of such other 
member. Immediately on receipt of information that a schedule 
then on file has been revised, or that a new schedule ha's been filed, 
any member may file a revised schedule conforming as to price and 
terms to the schedule of such other member, and effective on the same 
date, or he 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 mem- 
ber, 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 determined 
in the manner provided in Section 11 hereof, provided, however, that 
any member may by notice to the Code Authority adopt as his own 



24 

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 Industry, 
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 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 anj^ price schedule for such product 
then on file. 

9. The Code Authorit}^ shall furnish at cost to any non-member 
requesting them, copies of any price schedules which have been filed 
with it. Such price schedules shall be made available to nonmem- 
bers 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 such Section. 

11. Cost, for the purposes of this Article, shall be determined 
pursuant to the method of accounting and costing prescribed as pro- 
vided in Section 1 hereof as soon as such method is adopted, and ap- 
proved, and theretofore pursuant to the method emploj^ed by such 
member subject to such preliminary rules as the Code Authority 
shall from time to time prescribe with the approval of the A?dmin- 
istrator. 

12. For the purpose of determining whether Sections 7 and 10 
hereof have been complied with, every member shall upon the re- 
quest of the Code Authority furnish a designated agency of the 
Code Authority in respect to closed transactions only, with com- 
plete information in regard to any quotation, order, contract, or sale 
of any product of the Industry, including information as to specifi- 
cations, quantities, price, conditions of storage, transportation or 
delivery, terms of billing, cash or trade discounts allowed and other 
pertinent facts relating to such quotation, contract or sale. 

13. Nothing herein contained shall be construed to prevent the 
disposition of distress merchandise required to be sold to liquidate a 
defunct or insolvent business or of discontinued lines, damaged 
goods or seconds, in such manner at such price and such terms and 
conditions as the Code Authority and the Administrator may 
approve. 

14. Nothing herein contained shall be construed to prevent the 
fulfillment of a bona fide contract existing on the effective date of 
this Code.* 

Article VII — Reports and Statistics 

1. Each member shall prepare and file with an impartial agent 
designated by the Code Authority at such times and in such manner 
as it may prescribe, such statistics, data, and information relating to 
phint capacity, volume of production, volume of sales in units and 

* See paragraph 2 of order approving this Code. 



25 

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 Administrator may from time to time require. Any or all 
information so furnished by any member shall be subject to check- 
ing for the purpose of verification by an examination of the books, 
accounts, and records of such member by any disinterested account- 
ant or accountants or other qualified person or persons designated by 
the Code Autliority. 

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. No such data or information shall be published 
except in combination with other similar data and in such a man- 
ner as to avoid the disclosure of confidential information. The Code 
Authority shall arrange in such manner as it may determine for the 
current publication of industry statistics to members. 

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

4. In addition to information required to be submitted to the Code 
Authority there shall be furnished to Government Agencies such sta- 
tistical information as the Administrator may deem necessary for 
the purpose recited in Section 3 (a) of the Act. 

Article VIII — Monopolies 

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 IX — Recommendations 

1. The Code Authority may, from time to time, present to the 
Administrator recommendations based on conditions in the Indus- 
try which will tend to effectuate the operation of this Code and the 
policy of the Act, and in particular along the following lines : 

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

(b) For the establishment of plans to equalize production with 
demand, so that the interests of the Industry and the public may be 
properly served. 

(c) For dealing with any other inequality that may arise to en- 
danger the stability of the Industry and of production and 
employment. 

(d) For an increase or decrease in the number of Industry mem- 
bers of the Code Authority and/or for a change in the method of 
chposing such members. 

2. For the purpose of assisting the Code Authorities of the Paper 
Manufacturing and/or Converting Industries in the adjustment of 
all labor disputes and labor complaints arising within such indus- 
tries, the Code Authority shall consider the advisability of creating 



26 

a Joint Industrial Relations Board for such Industries and shall 
report its recommendations to the Administrator. 

3. Recommendations made pursuant to Sections 1 and 2 hereof 
when approved by the Administrator shall have the same force and 
effect as other provisions of this Code. 

Article X — Trade Practices 

1. The following are hereby constituted Trade Practices for the 
Industry and failure to comply with the provisions thereof shall be 
a violation of this Code. 

(a) Members of the Industry shall not practice deception in 
regard to that which is sold or its selling price by false or misleading 
description, statement, record, or undisclosed consideration. 

(b) Members shall refrain from dumping, deferred delivery, ex- 
tension of stated credit, and secret rebates. 

(c) Members shall not wilfully injure by falsely defaming a 
competitor's goods, credit, or ability to perform his contracts. 

(d) Members shall not wilfully induce or attempt to induce the 
breach of a competitor's contract. 

(e) No member shall give, permit to be given, or directly offer 
to give, anything of value for the purpose of influencing or reward- 
ing 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 knowl- 
edge of such employer, principal, or party. The foregoing pro- 
visions shall not be construed to prohibit free and general distribu- 
tion of articles commonly used for advertising except so far as such 
articles are actually used for commercial bribery as herein defined. 

(f) No member of the Industry shall ship goods on consignment 
except under circumstances to be defined by the Code Authority, 
where peculiar circumstances of the Industry require the practice. 

(g) No member shall extend to a customer special prices, services, 
or privileges not extended to all puchasers in the same classification 
and under like terms and conditions. 

2. In the event of a demand upon any member for a cap not 
included in member's previously filed schedules and definitions, 
the member may set a temporary price including a proper upcharge 
to cover the additional cost. 

3. (a) Members are responsible for the acts of their sales repre- 
sentatives or sales agents in respect to all provisions of this Code 
pertaining to sales as provided in Article VI. Violations of the 
provisions of this Code as pertaining to sales by members' sales rep- 
resentatives, or sales agents, constitute a violation of this Code on 
the part of the member. 

(b) The giving by members or their representatives or sales agents 
of secret commissions, secret or open rebates, refunds or credits in 
the form of money, presents, free goods, advertising allowances, or 
otherwise for the purpose of inducing sales or contracts, is a direct 
violation of the provisions of this Code. 

(c) Members' sales representatives or sales agents are persons, 
partnerships, or corporations employed by a member or members on 



27 

whole- or piirt-time basis; and compensatod on the basis of salary, 
commission, botli salary and commission, or otherwise. 

4. When entering- into contracts providin<5 for partial shipments 
the governing price shall be the price quoted by the member for the 
total quantity of the contract, provided, that .no member shall sell 
to a customer, who is listed in the National Association of Bottle Cap 
Manufacturers' official rating book and supjilements and revisions 
thereof, any product of the Industry at a price based upon a greater 
quantity than the quantity listed for such customer in said rating 
book. On all other orders the governing price shall be the price 
quoted by a member in accordance with the provisions of Article VI 
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 work or process incidental to, and carried on by a member 
at his plant as a part of the manufacture of any product of, the 
Industry, shall be regarded as a part of this Industry. 

3. Such of the provisions of this Code as are not required to be 
included therein by the Act, may, with the approval of the Admin- 
istrator, be modified and eliminated as changes in circumstances or 
experience may indicate. 

4. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions of Section 10 (b) of the Act, from time to time to cancel or 
modify any order, approval, license, rule, or regulation, issued under 
Title I of said Act, and specifically, but without limitation, to the 
right of the President to cancel or modify his approval of such Code 
or any conditions imposed by him upon his approval thereof. 

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



Approved Code No. 246. 
Registry No. 1608-02. 



o 



Approved Code No. 247 
CODE OF FAIR COMPETITION 

FOR THE 

FOOD DISH AND PULP AND PAPER PLATE 
INDUSTRY 

As Approved on February 1, 1934 



ORDER 



Approat[ng Code of Fair Competition for the Food Dish and Pulp 
AND Paper Plate 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 Food Dish and Pulp and Paper Plate 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 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; provided, however, that 
the provisions of Article VI, Sections 2 to 9 inclusive, insofar as they 
prescribe a waiting period between the filing with the Code Au- 
thority (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 pending my further order; provided 
further, that within ninety days I may direct that there be a further 
hearing on such of the provisions of said Code as I may designate, 
and that any order which I may make after such hearing shall have 
the effect of a condition on the approval of said Code. 

Hugh S. Johnson, 
Achninistrator for Industriol Recovery. 

Approval Recommended : 
Geo. L. Berry, 

Division Adini7iist7'ator. 

Washington, D.C, Fehniary 1, 193J^. 

37483°- 313-173 34 (29) 



EEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Food Dish and Pulp Paper Plate Industry conducted 
in Washington on December 28, 1933, in accordance with the pro- 
visions of Title I of the National Industrial Recovery Act. 

HOURS AND WAGES 

This Code provides a standard 40-honr week for factory workers 
with a weekly tolerance of eight hours to be paid for as overtime. 
The usual exceptions are made in regard to nonproductive em- 
ployees. Office employees are limited to an average of 40 hours per 
w^eek over an eight-week period. 

The minimum wage rate in the North for hourly paid employees 
is 400 per hour for males and 35^ per hour for females. In the 
South the minimum wage rate for hourly paid employees is 350 
per hour for males and 300 per hour for females. Office employees 
will receive a minimum wage of $16.00 per v>'eek in the North and 
$14.00 per week in the South. 

OPEN PRICE PLAN 

An open price plan of selling is provided, and selling below cost, 
except to meet competition, is prohibited. 

OTHER PROVISIONS 

Provision is made for furnishing the Administrator with such 
statistical data as he may require. 

ECONOIVriC EFFECT OF THE CODE 

The Industry in 1929 employed approximately l.GOO ]>ersons and 
in July 1933 about 1,800 persons. The number of the plants in the 
Indiistr}' increased from 12 in 1929 to 30 in 1933. Figures submitted 
by 17 plants engaged in the Industry show a total number, in July 
1933, of 1,491 factory employees of whom over 76% worked an 
average of at least 4.5 hours per week. The immediate effect of the 
Code will be to employ about 108 additional persons which number 
will ])robably increase to a1)out 270 persons by the Summer of 1934. 

In July 1933, 56% of male factory employees in the North and 
91% of the female factory employees received less than the proposed 
minimum rates of 400 and 350. The total increase in pay rolls as a 
result of the Code will be about 15%. 

(30) 



31 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having foinKl 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 jn-omote 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 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 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- 
structions 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, 
February 1, 1934. 



CODE OF FAIR COMPETITION FOR THE FOOD DISH 
AND PULP AND PAPER PLATE INDUSTRY 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following is hereby established as a Code of Fair 
Competition for the above-named Industry and shall be binding on 
every member thereof. 

Article I — Definitions 

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

" Industry " — The manufacture of pulp or paper dishes ; wooden 
veneer dishes; pulp or paper plates. 

" Member " — A natural person, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, or receiver, engaged in 
such Industry. 

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

"Administrator " — The Administrator for Industrial Recovery 
under Title I in the Act. 

Article II — Organization and Administration 

1. There shall forthwith be constituted a Code Authority of the 
Food Dish and Pulp and Paper Plate Industry wliich shall com- 
prise six (G) members of the industry. Three (3) of such members 
shall be selected by the Board of Directors of the Food Dish Asso- 
ciates of America, and three (3) of such members shall be selected by 
the Board of Directors of the Pulp and Paper Plate Associates of 
America. In addition to the members so selected the Administrator 
may appoint one or more persons to serve on the Code Authority. 
The pei-sons appointed by the Administrator shall serve in an advi- 
sory capacity, shall have no vote, and shall serve without expense to 
the Industry. 

2. Each of the said Associates shall impose no inequitable restric- 
tions on membership and shall file with the Administrator certified 
copies of any amendments of its By-Laws, relating to eligibility or 
admission to membership in said Associates, or relating to the 
method of selection of the members of such Board of Directors which 
said Associates may hereafter adopt. 

3. The Administrator may at any time prescribe a different method 
for selecting the Industry members of the Code Authority, and 
thereafter, such members shall be chosen in the manner so prescribed. 

•I-. The Code Authority is charged generally v/ith the duty of 
administering this Code. 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 

(32) 



33 

require that such action be suspended for a period of not to exceed 
thirty days to afford an op{)ortunity for investigation of the merits 
of such action and further consideration by such code authority or 
agency ]:)ending final action, which shall be taken only upon approval 
by the Administrator. 

5. The expenses of administering this Code shall be borne pro 
rata, in accordance with a formula to be adopted by the Code Au- 
thority, by all members of the Industry who accept the benefit of 
the services of the Code Authority or otherwise assent to this Code. 

6. The Code Authority shall have power to investigate alleged 
violations of this Code and acts or courses of conduct by any member 
which are or appear to be contrary to the policy of the Act or which 
tend or may tend to render ineffective this Code and to report the 
same with recommendations to the Administrator. 

T. The Code Authority is hereby constituted the agency to en- 
deavor to effect, by arbitral proceedings or otherwise, adjustments 
of contracts entered into by members of the Industry, where the 
costs of executing such contracts are increased through the appli- 
cation of the provisions of the Act or of this Code. 

Article III — Hours of Labor 

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

SCHEDULE OF WORKING HOURS 

(a) WatcJwum. — Fifty-six (56) hours in any one week, but not 
more than six (6) days in any seven (7) day period; or fifty -six 
(56) hours in any one week, but not more than eight (8) hours in 
any one day. 

(b) Chauffeurs^ truck drivers^ and their helpers. — One hundred 
eighty (180) hours in any period of four (4) consecutive weeks, 
provided, however, that time worked in excess of nine (9) hours in 
any one day or forty-five (45) hours in any one week shall be paid 
for as not less than time and one third. 

(c) Engineers., ■firemen^ electricians, filter-plant employees, elec- 
tric and hydroelectric operators. — One hundred sixty-eight (168) 
hours in any period of four (4) consecutive weeks, provided, how- 
ever, that time worked in excess of nine (9) hours in any one day 
or forty-five (45) hours in any one week 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 loith the opera- 
tion of such plant, mill or factory. — Eight (8) hours in any one day 
and forty (40) hours in any one week, provided, however, that these 
maximum limits may be exceeded for any reason at any time pro- 
vided that all time worked in excess of the maximums prescribed 
shall be paid for as not less than time and one third, and provided, 
further, that no employee shall be required or permitted to work in 
excess of ten (10) hours in any one day or forty-eight (48) hours in 
any one week. 



34 

(e) Employees regularly engaged in a manageriul or executive 
capacity and their personal secretaries^ foremen^ and supervisors,, 
receiving thirty-five dollars {$35.00) or more per iveeh,, and outside 
salesmen. — No limitation. 

(f) All other employees. — Forty-eight (48) hours in anj^ one 
week and not to exceed three hundred twenty (320) hours in any 
period of eight (8) consecutive weeks. 

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 breakdowns or involving pro- 
tection of life or property, provided, however, that all time worked 
in excess of the limitations prescribed in said schedule shall be paid 
for as not less than time and one third. 

3. No emplo^-er shall knov/ingly permit any employee to work 
for an}' time which, when totaled with that already perfonned with 
another employer or employers in this Industry, exceeds the maxi- 
mum permitted herein. 

Article IV — Wages 

1. The minimum rate of wage of any laborer, mechanical worker 
or artisan employed in any pulp or paper dish, or pulp or paper 
plate plant, mill or factory or on work connected 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 

Male labor, 40 cents jier hour. 
Female labor, 35 cents per hour. 

(b) In the Southern zone, which shall consist of the States of Vir- 
ginia, Tennessee, North Carolina, South Carolina, Georgia, Florida, 
Alabama, Mississippi, Louisiana, Arkansas, and Texas 

Male labor, 35 cents per hour. 
Female labor, 30 cents per hour. 

2. The minimum rate of wage of any laborer, mechanical worker, 
or artisan employed in any wooden veneer dish plant, mill or factory, 
or on work connected with or incidental to the operation of such 
plant, mill or factory, shall be : 

Male labor, 35 cents per hour. 
Female labor, 30 cents per hour. 

3. The mininunn rates of wages for all other employees shall be 
as follows : 

(a) In the Noitliern zone, as defined in Section 1 hereof, $16.00 
per week. 

(b) In the Southern zojie, as defined in said Section, $14.00 per 
Aveek. 

(c) Part-time employees covered by the provisions of this section 
shall be paid at the rate of not less than 40^ per hour in the North 
and 350 per hour in the South. 

4. This Article establishes a minimum rate of pay which shall 
'^PPb' irrespective of whether an employee is actually compensated 
on time-rate, piecework, or other basis. 



35 

5. Female employees performing substantially the same woi-k as 
male employees, shall receive the same rate of pay as male employees. 
The Code Authority sliall Avithin 90 days after the effective date 
of this Code file with the Administrator a description of all occupa- 
tions in the Industry in which both men and women are employed. 

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

7. Office boys and girls under 18 years of age, to the extent of no 
more than 5% of the total number of employees described in Section 
3 hereof, may be employed at a wage of not less than 80% of the 
mmnnum prescribed by said Section, provided that at least one such 
office boy or girl may be employed by each member. 

8. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a 
wage of not less than 80% of the minimum prescribed by this Code^ 
provided the State Authority or other agency designated by the 
United States Department of Labor shalfhave 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. 

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 (CO) 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 right to organize and bargain col- 
lectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self -organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. No em- 
ployee and no one seeking employment shall be required as a condi- 
tion of employment to join any company union or to refrain from 
joining, organizing, or assisting a labor organization of his own 
choosing. Employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of employment, 
approved or prescribed by the President. 

3. No provision in this Code shall supersede any State or Federal 
law which imposes on employers more stringent requirements as to 
age of employees, wages, hours of work, or as to safety, health, sani- 



36 

tary or general working conditions or insurance or fire protection, 
than are imposed by this Code. 

4. Xo 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 emplo^-ers shall post copies of Articles III, IV, and V of 
this Code in conspicuous places accessible to employees. 

6. Ever}' employer shall make reasonable provisions for the safety 
and health of his employees at the place and during the hours of 
their employment. Standards for safety and health shall be sub- 
mitted by the Code Authority to the Administrator within six (6) 
months after the eifective 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 b}?^ competent governmental authority acting in ac- 
cordance with law, or to terms of employment which are established 
by labor agreements now in force, where either the wages are higher 
or the liours 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 
Industr}' to determine the feasibility of the adoption of a shorter 
working week and shall, within three (3) months after the efi^ective 
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 employment. 

9. The manufacture or partial manufacture of any product of the 
Industry in homes shall be prohibited. 

Article VI — Accounting — Selling 

1. The Code Authority shall, as soon as practicable, formulate a 
standard method of accounting and costing for the industry and 
submit the same to the Administrator. When it shall have been 
approved by the Administrator, ever}^ member shall use an account- 
ing and costing system which conforms to the principles of, and is 
at least as detailed and complete as, such standard method. 

2. The Code Authority may, from time to time, determine that an 
open-price plan of selling such product or products of the industry 
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 mem- 
bers of the industry who manufacture such products not less than 30 
days prior to the date so fixed. 

3. At least ten days 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 
filed a schedule conforming in respect to price and terms of sale 
with the schedule at an}' time on file which 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 coritain all information necessary to permit 
any interested j^erson to determine the exact net price per unit after 



S7 

all discounts or other deductions have been made, whether pertaining 
to a single order, a commitment for future delivery, or a contract. 
All such original schedules shall become effective on the date fixed by 
the Code Authority as provided in Section 2 hereof. 

5. A revised schedule or schedules, or a new schedule or schedules, 
or a notice of wathdrawal of a schedule previously filed, may be filed 
by a member with the Code Authority at any time, provided, how- 
ever, that any member who withdraws a schedule without sub- 
stituting a new schedule therefore shall be deemed to have filed a 
schedule conforming in respect t-o price and terms of sale with the 
schedule at any time thereafter on file which states the lowest prico 
and the most favorable terms. Any schedule or notice filed here- 
iinder, shall become effective ten (10) days after the date of filing, 
provided, how^ever, that an increased price shall become effective 
immediately. 

6. The Code Authority shall promptly supply all members of the 
Industry who manufacture any particular product with copies of all 
schedules, revised schedules, and notices of withdrawal, which per- 
tain to such product. Immediately upon receipt of information 
relative to the withdrav\'al of a price for any product, any member 
may file notice of withdrawal of his own price for the same product 
effective as of the same date as the notice of withdrawal of such 
other member. Immediately on receipt of information that a 
schedule 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 member, and effective on 
the same date, or he 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 mem- 
ber, 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 determined 
in the manner provided in Section 11 hereof, provided, however, 
that any member may, by notice to the Code Authority, adopt as 
his owm, a lower price filed hj anotlier 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 
owm, a price filed by another member for any product of the In- 
dustry, shall sell such product for less than such price or upon 
terms or conditions more favorable than statexl in such price sched- 
ule. No member who shall have failed to file a price for any prod- 
uct 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 any price schedule for such 
product then on file. 

9. The Code Authority shall furnish at cost to any nonmeml^er 
requesting them, copies of any price schedules which have been filed 
with it. Such price schedules shall be made available to nonmeni- 
bers at the same time that they are sent to members- 



38 

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 such Section. 

11. Cost, for the purposes of this Article, shall be determined pur- 
suant to the method of accounting and costing prescribed as pro- 
vided in Section 1 hereof as soon as such method is adopted and ap- 
proved and theretofore pursuant to the method employed by such 
member subject to such preliminary rules as the Code Authority 
shall from time to time prescribe with the approval of the Adminis- 
trator. 

12. For the purpose of determining whether Sections 7 and 10 
hereof have been complied with, every member shall upon the request 
of the Code Authority furnish a designated agency of the Code 
Authority in respect to closed transactions only, with complete in- 
formation 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- 
livery, terms of billing, cash or trade discounts allowed, and other 
pertinent facts relating to such quotation, contract, or sale. 

13. Nothing herein contained shall be construed to prevent the dis- 
position 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 and the Administrator 
may approve. 

14. Nothing herein contained shall be construed to prevent the 
fulfillment of a bona fide contract existing on the effective date of 
this Code.^ 

Article VII — Reports and Statistics 

1. Each member shall prepare and file with an impartial agent 
designated by the Code Authority at such times and in such man- 
ner as it may prescribe, such statistics, data, and information relat- 
ing 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 Administrator may from time to time require. Any or all 
information so furnished by anj^ member shall be subject to check, 
ing for the purpose of verification by an examination of the books, 
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 i^rovided 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. 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. The Code 



' See paragraph 2 of order approving this Code. 



39 

Authority shall arran<]^c in such manner as it may determine for the 
current publication of industry statistics to members. 

3. iThe Code Authority shall make such reports to the Admin- 
istrator 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 Governm.ent Agencies 
such statistical information as the Administrator may deem necessary 
for the purposes recitod in Section 3 (a) of the Act. 

Article VIII — MoNoroi>iES 

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 IX — Recommendations 

1. Tlie Code Authority may, from time to time, present to the 
Administrator recommendations based on conditions in the Industry 
which will tend to effectuate the operation of this Code and the 
policy of the Act, and in particular along the following lines : 

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

(b) For the establishment of plans to equalize i^roduction with 
demand, so that the interests of the Industry and the public may 
be properly served. 

(c) For dealing with any other inequality that may arise to 
endanger the stability of the Industry and of production and 
employment. 

(d) For an increase or decrease in the number of Industry mem- 
bers of the Code Authority and/or for a change in the method of 
choosing such members. 

2. For the purpose of assisting the Code Authorities of the Paper 
Manufacturing and/or Converting Industries in the adjustment of 
all labor disputes and labor complaints arising within such Indus- 
tries, the Code Authority shall consider the advisability of creating a 
Joint Industrial Relations Board for such Industries and shall report 
its recommendations to the Administrator. 

3. Recommendations made pursuant to Sections 1 and 2 hereof 
when approved by the Administrator shall have the same force and 
effect as other provisions of this Code. 

Article X — Trade Practices 

1. The following are hereby constituted Trade Practices for the 
Industry and failure to comply with the provisions thereof shall be 
a violation of this code. 

(a) No member of the Induistry shall practice deception in regard 
to that which is sold or its selling price by false or misleading 
description, statement, record, or undisclosed consideration. 

(b) Members shall refrain from dumping, deferred delivery, 
extension of stated credit, and secret rebates. 



40 

(c) No member shall wilfully injure by falsely defaming a com- 
petitor's goods, credit, or ability to perform his contracts. 

(d) No member shall wilfully induce or attempt to induce the 
breach of a competitor's contract. 

(e) No member shall give, permit to be given, or directly offer 
to give, anything of value for the purpose of influencing or reward- 
ing the action of any emploj^ee, 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 knowl- 
edge of such employer, principal, or party. The foregoing 
provisions shall not be construed to prohibit free and general dis- 
tribution of articles commonl}?^ used for advertising except so far as 
such articles are actually used for commercial bribery as herein 
defined. 

(f ) No member of the industry shall ship goods on consignment 
except under circumstances to be defined by the Code Authority, 
where peculiar circumstances of the Industry require the practice. 

(g) Terms of sale in the Industry shall be not more favorable 
than two (2%) percent for cash if paid within thirty (30) days or 
net thirty-one (31) days from date of shipment. 

(h) No member shall guarantee either dealers or wholesalers floor 
stock against decline. 

Article XI — General Provisions 

1. If anj' member is also a member of another industry, the pro- 
visions of this Code shall apply to and affect only that part of his 
business which is included in this Industry. 

2. Any work or process incidental to, and carried on by a member 
at his plant as a part of the manufacture of any product of the In- 
dustry, 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, ma}' wdth the approval of the Adminis- 
trator, be modified and eliminated as changes in circumstances or 
experience may indicate. 

4. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions of Section .10(b) of the Act, from time to time to cancel or 
modif}' any order, approval, license, rule or regulation, issued under 
Title I of said Act, and specifically, but without limitation, to the 
right of the President to cancel or modify his approval of such Code 
or any conditions imposed by him upon his approval thereof. 

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



Approved Code No. 247. 
Registry No. 407-1-04. 



o 



Approved Code No. 248 
CODE OF FAIR COMPETITION 

FOR THE 

GLAZED AND FANCY PAPER INDUSTRY 

As Approved on February 1, 1934 



ORDER 



Approving Code of Fair Competition for the Glazed and Fancy 

Paper 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 Glazed and Fancy Paper 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 Order 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 
Competition be, and it is hereby approved; provided, however, that 
the provisions of Article VI, Sections 2 to 9 inclusive, insofar as 
they prescribe a waiting period between the filing with the Code 
Authority (i.e. actual receipt by the Code Authority) and the effec- 
tive date of revised price lists or revised terms and conditions of sale 
be, and they are hereby stayed pending my further order; provided 
further, that within ninety days I may direct that there be a further 
hearing on such of the provisions of said Code as I may designate, 
and that any order which I may make after such hearing shall have 
the effect of a condition on the approval of said Code. 

Hugh S. Johnson, 
Achnimstrat07' for Industrial Recovery. 

Approval Recommended : 
Geo, L. Berry, 

Division Adininistrator. 

Washington, D.C, 

Fehi^ary 1, 193 Ip, 

37484° 313-174 — —34 (41 ) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report of the hearino- on the Code of Fair Compe- 
tition for the Glazed and Fancy Paper Industry conducted in 
Washington on October IG, 1933, in accordance with the provisions 
of Title I of the National Industrial Recovery Act. 

HOURS AND AVAGES 

Tliis Code provides a standard 40-hour week for factory workers 
M'ith a weekly tolerance of eight hours to be paid for as overtime. 
The usual exceptions are made in regard to nonproductive employ- 
ees. Office employees are limited to an average of 40 hours per week 
over an eight-week period. 

The minimum wage rate for hourly-paid em})loyees is 40^^ per 
hour for males and 35^ per hour for females. Office employees will 
receive a minimum wage of $16.00 per week. 

OPEN FRICE PLAN 

An open price plan of selling is provided, and selling below cost, 
except to meet competition is prohibited. 

OTHER I'ROVISIONS 

Provision is made for furnishing the Administrator with such 
other statistical data as he may require. 

ECONOMIC EFFECT OF THE CODE 

The Industry employed about 1,800 persons in 1929. The num- 
ber employed in July 1933 was about 1,500 who worked an average 
of 46.8 hours per week. The effect of the Code, without increase 
in volume, will be to employ about 125 additional persons. The total 
increase in payrolls as a result of the Code will be about 3%. 

FINDINGS 

The Dei)uty Administrator in his final report to me on said Code 
having foiuul as herein set fortii 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 jDro- 
vide for the general welfare b}^ promoting the organization of 

(42) 



43 

industry for the pur])ose of coojjcrative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adecjuate governiental 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 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 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 this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
February 1, 1934. 



CODE OF FAIR COMPETITION FOR THE GLAZED AND 
FANCY PAPER INDUSTRY 

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

Article I — Definitions 

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

" Industry." — The manufacture of plain and embossed glazed and 
fancy papers, plain and embossed coated papei*s, and embossed or 
print embossed uncoated papers used primarily for decorative pur- 
poses (and not primarily as a base stock for commercial printing), 
printed design papers the use of which is directly competitive with 
any of tbe foregoing, and such special glazed, fancy, and cloth-lined 
papers as are natural affiliates. 

" Member." — A natural person, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, or receiver engaged in 
such Industry. 

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

"Administrator." — The Administrator for Industrial Recovery 
under Title I in the Act. 

Article II — Organization and Administration 

1. The members of the Executive Committee of the Glazed and 
Fancy Paper Manufacturers' Association, together with such other 
person or persons as the Administrator may designate are hereby 
constituted the Code Authority of the Industry. The members of 
the Code Authority designated by the Administrator shall act in an 
advisory capacity, shall have no vote, and shall serve without com- 
pensation from the Industi\y. 

2. The said Association shall impose no inequitable restrictions on 
membership and shall file with the Administrator certified copies of 
any amendments of its Bylaws relating to eligibility or admission 
to membership in such Association, or relating to the method of 
selection of the members of such Executive Committee which such 
Association may hereafter adopt. 

3. The Administrator may at any time prescribe a different 
method for selecting the Industry members of the Code Authority, 
and thereafter, such members shall be chosen in the manner so 
jirescribed. 

(44) 



45 

4. The Code Authority is charged generally with Iho duly of ad- 
ministering this (^xle. Tf thv Adininisti-ator shall detennine that 
any action of the Code Authority or any agency thereof ma}' he un- 
fair or unjust or contrary to the i:)ul)lic interest, the Administrator 
may require that such action be suspended to afford an opi)ortunity 
for investigation of the merits of such action and further considera- 
tion by the Code Authority or agency pending final action which shall 
not be effective unless the Administrator approves or unless he shall 
fail to disapprove after thirty days' notice to him of intention to 
proceed with such action in its original or modified form. 

5. The expenses of administering this Code shall be borne pro 
rata, in accordance with a formula to be adopted by the Code Au- 
thority, by all members of such Industry who accept the benefit of 
the services of the Code Authority or otherwise assent to this Code. 

6. The Code Authority shall have power to investigate alleged 
violations of this Code and acts or courses of conduct by any mem- 
ber Avhich are or appear to be contrary to the policy of the Act or 
which tend or may tend to render ineft'ective this Code and to report 
the same wdth reconnnendations to the Administrator. 

7. The Code Authority is hereby constituted the agency to en- 
deavor to effect, by arbitral proceedings or otherwise, adjustments of 
contracts entered into by members of the Industry where the costs 
of executing such contracts are increased through the application of 
the provisions of the Act or of this Code, 

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 ofWorJiing Hours. — (a) Watchmen: Fifty-six (56) hours 
in any one week, but not more than six (6) days in any seven (7) 
day period ; or fifty-six (56) hours in any one week but not more than 
eight (8) hours in any one day. 

(b) Chauffeurs, truck drivers, and their helpers: One hundred 
eighty (180) hours in any period of four (4) consecutive weeks, pro- 
vided, however, that time worked in excess of nine (9) hours in any 
one day or forty-five (45) hours in any one week shall be paid for 
at not less than time and one third. 

(c) Engineers, firemen, electricians, filter plant employees, electric 
and hydroelectric operators: One hundred sixty-eight (168) hours 
in any period of four (4) consecutive weeks, provided, however, that 
time worked in excess of nine (9) hours in any one day or forty-five 
(45) hours in any one w^eek shall be paid for at not less than time 
and one third. 

(d) All other laborers, mechanical workers or artisans employed 
in any plant, mill, or factory, or on work connected with the 
operation of such plant, mill, or factory: Eight (8) hours in any 
one day and forty (40) hours in any one week, provided, however, 
that these maximum limits may be exceeded for any reason at any 
time provided that all time worked in excess of the maximums pre- 



46 

scribed shall be paid for as not less than time and one third, and 
provided, further, that no employee shall be required or permitted 
to work in excess of ten (10) hours in any one day or forty-eight 
(48) hours in any one week. 

(e) Emploj'ees regularly engaged in a managerial or executive 
capacity, and their personal secretaries, foremen, and supervisors, 
receiving thirty-five ($35.00) dollars or more per week, and outside 
salesmen : No limitation. 

(f) All other employees: Forty-eight (48) hours in any one week 
but not to exceed three hundred twenty (320) hours in any period of 
eight (8) consecutive weeks. 

2. No limitation contained in said schedule shall apply to em- 
ployees of any class when engaged in emergency repairs or emergency 
maintenance work occasioned by break-downs or involving protection 
of life or propert}', provided, however, that all time worked in excess 
of the limitations prescribed in said schedule shall be paid for as not 
less than time and one third. 

3. No employer shall knowingly permit any employee to work for 
any time which, when totaled with that already performed wdth an- 
other employer or employers in this Industry, exceeds the maximum 
permitted herein. 

Article IV — Wages 

1. The minimum rate of w^age 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 : 

Male labor, 40 cents per hour. 
Feuuile labor, 35 cents per hour. 

2. The minimum rates of wages for all other employees shall be as 
follows: (a) $16.00 per week. 

(b) Part-time employees covered by the provisions of this section 
shall be paid at the rate of not less than 400 per hour. 

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

4. Female employees performing substantially the same work as 
male employees, shall receive the same rate of pay as male emploj^ees. 
The Code Authority shall within 90 days after the effective date of 
this Code file with the Administrator a description of all occupations 
in the Industry in Avhich both men and women are employed. 

5. The wage rates of all employees receiving more than the mini- 
mum rates herein prescribed shall be reviewed and such adjustments, 
if an3% made therein as are equitable in the light of all the circum- 
stances, and within sixty (60) days after the effective date hereof, 
the Code Authority shall report to the Administrator the action 
taken by all members of the Industry under this section. 

6. Office boys and girls under 18 years of age, to the extent of no 
more than 5% of the total number of employees described in Section 
2 hereof, may be employed at a wage of not less than 80% of the 
minimum prescribed by said Section, provided that at least one such 
office boy or girl nuiy be employed by each member. 



47 

7. A person whoso eiii-ninj;- capacity is limited because of age or 
physical or mental liandicaj) may be employed on light work at a 
wage of not less than 80%^ of the minimum prescribed by tliis Code, 
provided tlie Sti>te Aiitliority or other agency designated by the 
U-ited States Department of Labor shall have issued a certificate 
authorizing his employment on such basis. Each member shall file 
w'-'Ai the Code Authority a list of all such persons employed by him. 
The provision of this "Section requiring a certificate of authority 
shall not become effective until sixty (60) days after the eifective 
date of this Code. 

AirricLK V — (tenehal Labor Provisioxs 

1. No person under .sixteen (16) years of age shall bs 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 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 right to organize and bargain col- 
lectively through representatives of their own choosing, and shall be 
free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. No em- 
ployee and no one seeking employment shall be required as a condi- 
tion of employment to join any company union or to refrain from 
joining, organizing, or assisting a labor organization of his own 
choosing. Employers shall comply with the maximum hours of 
Labor, minimum rates of pay, and other conditions of employment, 
approved or prescribed by the President. 

3. No provision in this Code shall supersede any State or Federal 
law^ which imposes on emploj^ers more stringent requirements as to 
age of employees, wages, hours of work, or as to safety, health, san- 
itary, or general working conditions or insurance or fire protection, 
than are imposed by this Code. 

4. No employer shall reclassify employees or duties of occupations 
performed or engage in any other subterfuge for the purpose of de- 
feating 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 employer shall make reasonable i^rovisions for the safety 
and health of his employees at the place and during the hours of 
their employment. Standards for safet,y 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 spe- 



48 

cific projects by competent governmental authority acting in ac- 
cordance with hiw, 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. 

8. The Code Authority shall make a study of conditions in the 
Industry to determine the feasibility of the adoption of a shorter 
working week and shall, wnthin 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 i}us Code, a plan for the 
stabilization and regularization of employment. 

9. The manufacture or partial manufacture of any product of the 
Industry in homes shall be prohibited. 

Article VI — Accounting — Selling 

1. The Code Authority shall, as soon as practicable, formulate a 
standard method of accounting and costing for the Industry and 
submit the same to the Administrator. When it shall have been 
approved by the Administrator, every member shall use an account- 
ing and costing system which conforms to the principles of, and is 
at least as detailed and complete as, such standard method. 

2. The Code Authority may from time to time determine that an 
open price plan of selling such product or products of the Industry 
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 mem- 
bers of the Industry who manufacture such products not less than 30 
days prior to the date so fixed. 

3. At least ten daj'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 
filed a schedule conforming in respect to price and terms of sale 
with the schedule at any time on file which states the low^est 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, wdiether 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. 

5. A revised schedule or schedules, or a new schedule or schedules, 
or a notice of withdrawal of a schedule previously filed may be filed 
by a member wnth the Code Authority at any time, provided, how- 
ever, that any member wdio withdraws a schedule without substitut- 
ing a new schedule therefor shall be deemed to have filed a schedule 
conforming in re-spect to price and terms of sale with the schedule 
at any time thereafter on file which states the lowest price and the 
most favorable teniLs. 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. 



49 

6. The Code Authority sliall .])roinptly supply all members of the 
Industry who manufacture any i)articular product with copies of 
all schedules, revised schedules, aiul notices of withdrawal which 
pertain to such product. Immediately ujwn receipt of information 
relative to the withdrawal of a price for any product, any member 
may file notice of withdrawal of his own price for the same 
product effective as of the same date as the notice of withdrawal 
of such other member. Immediately on receipt of information that 
a schedule then on file has been revised, or that a new schedule has 
been filed, any member may file a revised schedule conform ino- as 
to price and terms to the schedule of such other member and effec- 
tive on the same date, or he 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 con- 
forming to the revised schedule of such other member, 

7. No such schedule of prices and terms of sale filed by any mem- 
ber, 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 determined 
in the manner provided in Section 11 hereof; provided, however, 
that any member may by notice to the Code Authority adopt as 
his own a lower price filed b}- another designated member. Such 
adoption shall become automatically void upon the withdrav>'al 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 anj^ product of the Industry, 
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 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 any price schedule for such product 
then on file. 

9. The Code Authority sliall furnish at cost to an}- nonmember 
requesting them copies of any price schedules Avhicli have been 
filed with it. Such price schedules 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, excei)t to meet 
the price of a competitor whose price does not violate such Section. 

11. Cost, for the purpose of this Article, .shall be determined pur- 
suant to the method of accounting and costing prescribed as pro- 
vided 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 rules as the Code Authority 
shall from time to time prescribe Avitli the approval of the Admin- 
istrator. 

12. For the purpose of determining whether Sections 7 and 10 
hereof have been complied with, every member shall upon the re- 
q.-est of the Code Authority furnish a designated agency of the Code 
Authority in respect to closed transactions only, with complete in- 
formation in regard to any quotation, order, contract, or sale of any 



50 

product of the Industry, including information as to specifications, 
quantities, price, conditions of storage, transportation or delivery, 
terms of billing, cash or trade discounts allowed and other pertinent 
facts relating to such quotation, contract, or sale. 

13. iN'othing herein contained shall be construed to prevent the dis- 
position of distress merchandise required to be sold to liquidate a 
defunct or insolvent business or of discontinued lines, damaged goods, 
or seconds, in such manner, at such price, and such terms and condi- 
tions as the Code Authority and the Administrator may approve. 

14. Nothing herein contained shall be construed to prevent the 
fulfillment of a bona fide contract existing on the effective date of 
this code.^ 

Article VII — Reports and Statistics 

1. Each member shall prepare and file with an impartial agent 
designated by the Code Authority at such times and in such manner 
as it may prescribe, such statistics, data, and information relating 
to plant capacity, volume of production, volume of sales in units 
and dollars, orders received, unfilled orders, stocks on hand, inven- 
tory, both raw and finished, number of employees, wage rates, em- 
ployee earnings, hours of work and other matters, as the Code Au- 
thority 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, accounts, and records of such member by any disinterested 
accountant or accountants or other qualified person or persons desig- 
nated by the Code Authority. 

2. Except as otherwise provided in the Act, or in this Code, all 
statistics, data, and information filed or required in accordance with 
the provisions of this Code shall be confidential and the statistics, 
data, and information of one member shall not be revealed to another 
member. No such data or information 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 in such manner as it may determine for the current pub- 
lication of industry statistics to members. 

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

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

Article VIII — Monopolies 

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. 

* See paragraph 2 of order approving tliis Code. 



51 
Article IX — Rkcommendations 

1. The Code Authority may, from time to time, present to the Ad- 
ministrator recommendations based on conditions in the Industry 
which will tend to effectuate the operation of this Code and the 
policy of the Act, and in particular along the following- lines : 

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

(b) For dealing- with any other inequality that may arise to en- 
danger the stability of the industry and of production and employ- 
ment. 

(c) For an increase or decrease in the number of Industry mem- 
bers of the Code Authority and/or for a change in the method of 
choosing such members. 

2. For the purpose of assisting the Code Authorities of the Paper 
Manufacturing and/or Converting Industries in the adjustment of 
all labor disputes and labor complaints arising within such indus- 
tries, the Code Authority shall consider the advisability of creating 
a Joint Industrial Relations Board for such Industries and shall 
report its recommendations to the Administrator. 

3. The Code Authority shall make a study of conditions in the 
Industry to determine the need of the establishment of plans to 
equalize production with demand, so that the interests of the In- 
dustry and the public may be properly served, and shall within six 
months after the effective date of this Code make a report of its 
findings to the Administrator. 

4. Recommendations made pursuant to Sections 1, 2, and 3 hereof, 
when approA'ed by the Administrator, shall have the same force 
and effect as other provisions of the Code. 

Article X — Trade Practices 

1. The following are hereby constituted Trade Practices for the 
Industry, and failure to comply with the provisions thereof shall be 
a violation of this Code. 

(a) Members of the Industry shall not practice deception in regard 
to that wdiich is sold or its selling price by false or misleading de- 
scription, statement, record, or undisclosed consideration. 

(b) Members shall refrain from dumping, deferred delivery, ex- 
tension of stated credit, and secret rebates. 

(c) Members shall not w'illfully injure by falsely defaming a 
competitor's goods, credit, or ability to perform his contracts. 

(d) Members shall not wilfully induce or attempt to induce the 
breach of a competitor's contract. 

(e) No member 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 princi- 
pal of such agent or the represented part3% without the knowledge of 
such employer, principal or party. The foregoing provisions shall 
not be construed to prohibit free and general distribution of articles 



52 

commonlj'^ used for advertising except so far as such articles are 
actually used for commercial bribery as herein defined. 

(f ) No member of the Industry shall ship goods on consignment 
except under circumstances to be defined by the Code Authority, 
where peculiar circumstances of the Industry require the practice. 

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 work or process incidental to, and carried on by a member 
at his plant as a part of the manufacture of any product of the In- 
dustry, 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 Admin- 
istrator be modified and eliminated as changes in circumstances or 
experience may indicate. 

4. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions of Section 10 (b) of the Act, from time to time to cancel 
or modify any order, approval, license, rule, or regulation, issued 
under Title I of said Act, and specifically but without limitation, to 
the right of the President to cancel or modify his approval of such 
code or any conditions imposed by him upon his approval thereof. 

5. This Code shall become effective on the second Monday after 
the elate upon w^hich it shall be approved by the President of the 
United States. 



Approved Code No. 248. 
Registry No. 407-06, 







Approved Code No. 249 
CODE OF FAIR COMPETITION 

FOR THE 

TAG INDUSTRY 

As Approved on February 1, 1934 



OEDER 

Approvixg Code of Fair Competition for the Tag 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 Tag 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 
PrBsiQGnt * 

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 VI, Sections 2 to 9, inclusive, insofar as 
they prescribe a waiting period between the filing with the Code 
Authority (i.e. actual receipt by the Code Authority) and the effec- 
tive date of revised price lists or revised terms and conditions of sale 
be, and they are hereby, stayed pending my further order ; provided 
further, than within ninety days I may direct that there be a fur- 
ther hearing on such of the provisions of said Code as I may 
designate and that any order which I may make after such hear- 
ing shall have the effect of a condition on the approval of said 
Code. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval Recommended : 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

February 1, 1934. 

37487° 313-175 34 (53) 



REPOET TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Tag Industry, conducted in Washington on October 19, 
1933, in accordance with the provisions of Title I of the National 
Industrial Recovery Act. 

HOURS AND WAGES 

This Code provides a standard 40-hour week for factory workers 
with a weekly tolerance of eight hours to be paid for as overtime. 
The usual exceptions are made in regard to nonproductive em- 
ployees. Office employees are limited to an average of 40 hours per 
week over an eight-week period. 

The minimum wage rate in the North for hourly paid employees 
is 40^' per hour for males and 33<' per hour for females. In the South 
the minimum wage rate for hourl}^ paid employees is 35^ per hour for 
males and 300 per hour for females. Office employees will receive a 
minimum wage of $15.00 per week in the North and $14.00 per week 
in the South. 

OPEN-PRICE PLAN 

An open-price plan of selling is provided, and selling below cost, 
except to meet competition, is prohibited. 

OTHER PROVISIONS 

Provision is made for furnishing the Administrator with such 
statistical data as he may require. 

ECONOMIC EFFECT OF THE CODE 

The Industry employed in 1029 approximately 2,200 persons, and 
in July 1933 about 1,800 persons. In September 1933, the number of 
unemployed in the Industry had been reduced by approximately one 
half due to the effect of the President's Reemployment Program. 
The effect of the Code will be to employ from 286 to 330 persons over 
the July 1933 total. 

The total increase in pay rolls as a result of the Code will be 
18 to207o. 

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 

(54) 



55 

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 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. 

(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, 

Adininistrator, 
February 1, 1934. 



CODE OF FAIR COMPETITION FOR THE TAG INDUSTRY 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following is hereby established as a Code of Fair 
Competition for the above-named Industry and sliall be binding on 
every member thereof. 

Article I — Definitions 

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

" Industry " — The manufacture of Shipping and System Tags, 
Merchandise and Marking Tags, Pin tickets. 

" Member " — A natural person, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, or receiver, engaged in such 
Industry. 

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

"Administrator " — The Administrator for Industrial Recovery 
under Title I in the Act. 

Article II — Organization and Administration 

Section 1. The members of the Executive Committee of the Tag 
Manufacturers Institute, together with such other person or persons 
as the Administrator may designate, are hereby constituted the Code 
Authority of the Industry. The Members of the Code Authority des- 
ignated by the Administrator shall act in an advisory capacity, shall 
have no vote, and shall serve without compensation from the 
Industry. 

Sec. 2. The said Institute shall impose no inequitable restrictions 
on membership and shall file with the Administrator certified copies 
of any amendments of its By-Laws, relating to eligibility or admis- 
sion to membership in said Institute, or relating to the method of 
selection of the members of such Executive Committee which said 
Institute may hereafter adopt. 

Sec. 3. The Administrator may at any time prescribe a different 
method for selecting the Industry members of the Code Authority, 
and thereafter, such members sliall be chosen in the manner so 
prescribed. 

Sec. 4. The Code Authority is charged generally with the duty of 
Administering this Code. 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 re- 
quire that such action be suspended for a period of not to exceed 
tliirty 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. 

(56) 



57 

Sec. 5. The expenses of administerinfy this Code shall be borne pro 
rata, in accordance with a formula to be adopted by the Code Au- 
thority, by all members of the Industry who accept the benefit of 
the services of the Code Authority or otherwise assent to this Code. 

Sec. G. The Code Authority shall have power to investif^ate al- 
leged violations of this Code and acts or courses of conduct by any 
member which are or appear to be contrary to the ])olicy of the Act 
or which tend or may tend to render ineffective this Code and to 
report the same with recommendations to the Administrator. 

Seo. 7. The Code Authority is hereby constituted the agency to 
endeavor to effect, by arbitral proceedings or otherwise, adjustments 
of contracts entered into by members of the Industry, where the costs 
of executing such contracts are increased through the application of 
the provisions of the Act or of this Code. 

Article III — Hours or Labor 

Section 1. Employees in the Industry shall not be required or per- 
mitted to work hours in excess of the limits prescribed in the follow- 
ing schedules: 

schedule of working hours 

(a) Watchmen. — Fifty Six (56) hours in any one week, but not 
more than six (6) days in any seven (7) day period. Or fifty-six 
(56) hours in any one week, but not more than eight (8) hours in 
any one day. 

(b) Chauffeurs., truckdrivers^ and their helpers. — One Hundred 
eighty (180) hours in any period of four (4) consecutive weeks, pro- 
vided, however, that time worked in excess of nine (9) hours in any 
one day or forty-five (45) hours in any one week shall be paid for 
at not less than time and one third. 

(c) Engineers., firenien., electricians, filter -plaint emploi/ees., elec- 
tric and hydroelectric operatm^s. — One hundred and sixty-eight 
(168) hours in any period of four (4) consecutive weeks, provided 
however, that time worked in excess of nine (9) hours in any one 
day or forty-five (45) hours in any one week shall be paid for at not 
less than time and one third. 

(d) All other laborers., mechanical loorlcers, or artisans employed 
in any plant .^ mill., or factoivj or on work connected' with the opera- 
tion of such plant, mill, or factory. — Eight (8) hours in any one day 
and forty (40) hours in any one week, provided, however, that these 
maximum limits may be exceeded for any reason at any time pro- 
vided that all time worked in excess of the maximums prescribed 
shall be paid for at not less than time and one third, and provided 
further, that no employee shall be required or permitted to work in 
excess of ten (10) hours in any one day or forty-eight (48) hours 
in any one week. 

(e) Employees regularly engaged in a m-anagerial or executive 
capacity and their personal secretaries, forem-en, and supervisors^ 
receiving thirty-five {$35.00) dollars or m,ore per week., and outside 
salesmen. — No limitation. 



58 

(f) All. oth£r employees. — Forty-eight (48) hours in any one week 
and not to exceed three hundred twenty (320) hours in any period of 
eight (8) consecutive weeks. 

(g) Excepting only watchmen, firemen, repairmen, and those em- 
pk)yees named under paragraph (e) of this section, time worked by 
emJDloyees on a seventh consecutive day shall be paid for at not less 
than time and one third. 

Sec. 2. No limitation contained in said schedule sliall apply to 
employees of any class when engaged in emergency repairs or emer- 
gency maintenance work occasioned by breakdowns or involving 
protection of life or property, provided, however, that all time 
worked in excess of the limitations prescribed in said schedule shall 
be paid for at not less than time and one third. 

Sec. 3. Xo emploj^er shall knowingly permit any employee to work 
for any time which, when totaled Avith that already performed with 
another employer or employers in this Industry, exceeds the maxi- 
mum permitted herein. 

Sec. 4. Xo female employee shall be required or permitted to work 
between the hours of 10:00 P.M. and 6 : 00 A.M. 

Article IV — Wages 

Section 1. The minimum rate of wage of any laborer, mechanical 
worker, or artisan employed in any plant, mill, or factory or on 
work connected with the operation oi 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 — 

Male labor, 40 cents per hour. 
Female labor, 33 cents per hour. 

(b) In the Southern zone, which shall consist of the States of 
Virginia, Tennessee, North Carolina, South Carolina, Georgia, 
Florida, Alabama, Mississippi, Louisiana, Arkansas, and Texas — 

Male labor, 35 cents per hour. 
Female labor, 30 cents per hour. 
Sec. 2. The minimum rates of wages for all other employees 
shall be as follows : 

(a) In the Northern zone, as defined in Section 1 hereof, $15.00 
per week. 

(b) In the Southern zone, as defined in said Section, $14.00 per 
week. 

(c) Part-time emplo3^ees covered by the provisions of this section 
shall be paid at the rate of not less than 37%^ per hour in the 
North and 350 per hour in the South. 

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

Sec. 4. Female employees performing substantially the same work 
as male employees shall receive the same rate of pay as male em- 
ployees. The Code Authority shall within 90 days after the effec- 
tive date of this Code file with the Administrator a description of 



59 

all occupations in the Industry in which both men and women are 
employed. 

Sec. 5, The wage rates of all employees receiving more tlian the 
mmimum 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) days after the effective (Uite 
hereof the Code Authority shall report to the Administrator the 
action taken by all members of the Industn- under this section. 

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 of not less than 80% of the minimum prescribed by this 
Code, proAdded the State Authority or other agency designated by 
the United States Department of Labor shall have issued a cer- 
tificate authorizing his employment on such basis. Each member 
shall file with the Code Authority a list of all such persons em- 
ployed by him. The provision of this Section requiring a certificate 
of authority shall not become effective until sixty days after the 
effective date of this Code. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) j^ears of age shall be em- 
ployed in the Industry. No person under eighteen (18) years of age 
shall be employed at operations or occupations wdiich are hazard- 
ous 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 provi- 
sion 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. 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. No em- 
ployee and no one seeking employment shall be required as a condi- 
tion of employment to join any company union or to refrain from 
joining, organizing, or assisting a labor organization of his own 
choosing. Employees 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 provision in this Code shall supersede any State or 
Federal law wdiich imposes on employers more stringent require- 
ments as to age of employees, wages, hours of work, or as to safety, 
health, sanitary or general working conditions or insurance or fire 
protection, than are imposed by this Code. 

Sec. 4. 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. 



60 

Sec. 5. All employers shall post copies of Articles III, IV, and V 
of this Code in conspicuous places accessible to employees. 

Sec. 6. Every employer shall make reasonable provisions for the 
safety and health of his employees at the place and during the hours 
of their emplojmient. Standards for safety and health shall be 
submitted by the Code Authority to the Administrator within six 
(6) months after the effective date of this Code. 

Sec. 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 M'ith 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. 

Sec. 8. The Code Authority shall make a study of conditions in the 
industr}' 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 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 employment. 

Sec. 9. The manufacture or partial manufacture of any product 
of the Industry in homes shall be prohibited after May 1st, 1934. 

Article VI — Accounting — Selling 

Section 1. The Code Authority shall, as soon as practicable, for- 
mulate a standard method of accounting and costing for the industry 
and submit the same to the Administrator. When it shall have been 
approved by the Administrator, every member shall use an account- 
ing and costing system which conforms to the principles of, and is 
at least as detailed and complete as, such standard method. 

Sec. 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. 

Sec. 3. At least ten days 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 filed a schedule conforming in respect to price and terms of sale 
with tlie schedule at any time on file which states the lowest price 
and the most favorable terms. 

Sec. 4. All such schedules shall be in such form as the Code Au- 
thority shall prescribe and shall contain all information necessary to 
peiTnit any interested person to determine the exact net price per 
unit after all discounts or other deductions have been made, whether 
pertaining to a single order, a commitment for future delivery, or a 
contract. All such original schedules shall become effective on the 
date fixed by the Code Authority as provided in Section 2 hereof. 

Sec. 5. A revised schedule or schedules, or a new schedule or sched- 
ules, or a notice of withdrawal of a schedule previously filed, may 



61 

be filed by a member with the Code Authority at any time, provided, 
however, that any member who withdraws a schedule without substi- 
tuting a new schedule therefor shall be deemed to have filed a sched- 
ule conforming in respect to price and terms of sale with the 
schedule at any time thereafter on file which states the lowest price 
and the most favorable terms. Any schedule or notice filed here- 
under shall become effective seven (7) 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. 

Sec. 6. The Code Authority shall promptly supply all members of 
the industry who manufacture any particular product with copies of 
all schedules, revised schedules, and notices of withdrawal, which 
pertain to such product. Immediately upon receipt of information 
relative to the withdrawal of a price for any product, any member 
may file notice of withdrawal of his own price for the same product 
effective as of the same date as the notice of withdrawal of such 
other member. Immediately 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 member, and effective on the 
same date, or he may notify tlie 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. 

Sec. 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 de- 
termined in the manner provided in Section 11 hereof, provided, 
however, 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. 

Sec. 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 
Industry, shall sell such product for less than such price or upon 
terms or conditions more favorable than stated in such price sched- 
ule. No member who shall have failed to file a price for any product 
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 any price schedule for such product 
then on file. 

Sec. 9. The Code Authority shall furnish at cost to any nonmem- 
ber requesting them, copies of any price schedules which have been 
filed with it. Such price schedules shall be made available to non- 
members at the same time that they are sent to members. 

Sec. 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 such 
Section. 

Sec. 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 therefore pursuant to the method employed by 



62 

such, member subject to such preliminary rules as the Code Author- 
ity shall from time to time prescribe with the approval of the 
Administrator. 

Sec. 12. For the purpose of determining whether Sections 7 and 
10 hereof have been complied with, every member shall upon the 
request of the Code Authority furnish a designated agencj of the 
Code Authority in respect to closed transactions only, with com- 
plete information in regard to any quotation, order, contract, or sale 
of any product of the Industry, including information as to specifi- 
cations, quantities, price, conditions of storage, transportation, or 
delivery, terms of billing, cash or trade discounts allowed, and other 
pertinent facts relating to such quotation, contract, or sale. 

Sec. 13. Notliing herein contained shall be construed to prevent 
the disposition of distress merchandise required to be sold to liqui- 
date a defunct or insolvent business or of discontinued lines, dam- 
aged goods or seconds, in such manner at such price and such terms 
and conditions as the Code Authority and the Administrator may 
approve. 

Sec. 14. Nothing herein contained shall be construed to prevent 
the fulfillment of a bona fide contract existing on the effective date 
of this Code.* 

Article VII — Reports and Statistics 

Section 1. Each member shall prepare and file with an impartial 
agent designated by the Code Authority at such times and in such 
manner as it may prescribe, such statistics, data, and information 
relating to plant capacity, volume of production, volume of sales in 
units and dollars, orders received, unfilled orders, stoclcs 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 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, accounts, and records of such member by any disinterested 
accountant or accountants or other qualified person or persons desig- 
nal^ed by the Code Authority. 

Sec. 2. Except as otherwise provided in the Act, or in this Code, 
all statistics, data, and information filed or required in accordance 
with the provisions of this Code shall be confidential and the statis- 
tics, data, and information of one member shall not be revealed to 
another member. No such data or information shall be published 
except in combination with other similar data and in such a manner 
a J to avoid the disclosure of confidential information. The Code 
Authority shall arrange in such manner as it may determine for the 
current publication of Industry statistics to members. 

Sec. 3. The Code Authority shall make such reports to the Admin- 
istrator as he may from time to time require. 

Sec. 4. In addition to information required to be submitted to the 
Code Authority there shall be furnished to Government Agencies 
.K.uch statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act. 

♦ See paragraph 2 of order approving this Code. 



63 
Article VIII — Monopolies 

Section 1. No provision of this Code shall bo so applied as to 
perinit monopolies or monopolistic practices, or to eliminate, oppress, 
or discriminate against small enterprises. 

Article IX — Recommendations 

Section 1. The Code Authority may, from time to time, present to 
the Administrator recommendations based on conditions in the In- 
dustry which will tend to effectuate the operation of this Code and 
the policy of the Act, and in particular along the following lines : 

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

(b) For the establishment of plans to equalize production with 
demand so that the interests of the Industry and the public may be 
properly served. 

(c) For dealing with any other inequality that may arise to 
endanger the stability of the Industry and of production and 
employment. 

(d) For an increase or decrease in the number of Industry mem- 
bers of the Code Authority and/or for a change in the method of 
choosing such members. 

Sec. 2. For the purpose of assisting the Code Authorities of the 
Paper Manufacturing and/or Converting Industries in the adjust- 
ment of all labor disputes and labor complaints arising within such 
Industries, the Code Authority shall consider the advisability of 
creating a Joint Industrial Relations Board for such Industries and 
shall report its recommendations to the Administrator. 

Sec. 3. Recommendations made pursuant to Sections 1 and 2 
hereof when approved by the Administrator shall have the same 
force and effect as other provisions of this Code. 

Article X — Trade Practices 

Section 1. The following are hereby constituted trade Practices 
for the Industry and failure to compl}^ with the provisions thereof 
shall be a violation of this Code. 

(a) Members of the Industry shall not practice deception in regard 
to that which is sold or its selling price by false or misleading de- 
scription, statement, record, or undisclosed consideration. 

(b) Members shall refrain from dumping, extension of stated 
credit, and secret rebates. 

(c) Members shall not wilfully injure by falsely defaming a com- 
petitor's goods, credit, or ability to perform his contracts. 

(d) Members shall not wilfully induce or attempt to induce the 
breach of a competitor's contract. 

(e) No member 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 knowl- 



64 

edge of such emplo3^er, principal, or party. The foregoing provi- 
sions 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 defined. 

(f) No member of the Industry shall ship goods on consignment 
except under circumstances to be defined by the Code Authority, 
where peculiar circumstances of the Industry require the practice. 

Article XI — General Provisions 

Section 1. If any member is also a member of another industry, 
the provisions of this Code shall apply to and affect only that part 
of his business which is included in this Industry. 

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

Sec. 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 Admin- 
istrator, be modified and eliminated as changes in circumstance or 
experience ma}'^ indicate. 

Sec. 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 
modif}'' 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. 

Sec. 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. 249. 
Registry No. 404-1-O7. 

o 



Approved Code No. 250 
CODE OF FAIR COMPETITION 

FOR THE 

WIRE, ROD, AND TUBE DIE INDUSTRY 

As Approved on February 1, 1934 



ORDER 



Appromng Code of Fair Competition for the Wire, Rod, and Tube 

Die Industry 

An application havin<»: been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June IC, 1933, for approval of a Code of 
Fair Competition for the Wire, Rod, and Tube Die 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 JExecutive 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 the provisions of Article VII, Sections 1 and 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 sixty days from the effec- 
tive 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, 
Admbiwtrafo}' for' Industrial Recovery. 

Approval recommended : 
AV. A. Harriman, 

Division Administrator. 

Washington, D.C, 

Fehruary 1^ 1934. 

37485° 313-17G— — 34 (65) 



PvEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Wire, Rod, and Tube Die Industry in the United States, the hearing 
having been conducted in Washington on December 28, 1933, in 
accordance with the provisions of the National Industrial Recovery 
Act. 

PROVISIONS FOR HOURS AND WAGES 

The maximum of 40 hours, and 5 days a week, and 8 hours a day, 
is provided by this Code, for all factory employees, except those on 
emergencj'' maintenance and repair work, who will receive time and 
a half overtime pay for hours worked in excess of the above maxi- 
mum. The hour limitation will not apply to traveling salesmen 
nor to persons engaged in a managerial or executive capacity who 
earn more than 35 dollars a week. 

The minimum wage to factory employees will be 40 cents per 
hour. The minimum to all clerical emploj^ees will be IG dollars per 
week. 

CHILD LABOR 

The minimum age of employees will be IG years, except in hazard- 
ous occupations where the minimum will be 18 years. 

ECONOMIC EFFECT OF CODE 

The 40-hour week provided b}' the Code and adopted under the 
President's Re-employment Agreement, in addition to improved busi- 
ness, has increased employment in this Industry about 30 percent 
since June, 1933; or as high as the 1929 level, despite a drop in sales 
volume since 1929 of 22 percent. In June, working time averaged 
50 hours per week and the maximum was 52 hours per week. 

The minimum wage of 40 cents per hour and IG dollars per week 
for a 5-day week for all factory employees, without exception, should 
result in an appreciably higher average pay for all workers, and 
will restore purchasing power to the 1929 level. 

The manufacture of the drawing dies, which are used for the 
elongation and deformation of wire, rods, and tubes, is highly 
specialized, requiring workers who are especially trained. Dies are 
usuall}' made of diamonds or tungsten carbide. The business of the 
21 concerns in the industry in 1933 amounted to about $2,000,000. 

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 

(66) 



67 

removal of obstrnctioiis to the free flow of interstate and foreign 
commerce Avhi<'li tend to diminish the amount ther-eof and will pro- 
vide for the general welfare by ])romoting the organization of in- 
dustry for the j)ur])ose 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- 
ploj^ees; and is not classilied 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 group 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 types of the economic process have 
not been deprived of the right to be heard prior to a^^proval of said 
Code. 

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

Hugh S. Johnson, 

Administrator. 
February 1, 1934. 



CODE OF FAIR COMPETITION FOR THE WIRE, ROD, AND 
TUBE DIE INDUSTRY 

Article I — Purposes 

To effect 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 Wire, Rod, and Tube Die Industry, and shall be the 
standard of fair competition for such Industry, and shall be binding 
on every member thereof. 

* Article II — Definitions 

The term '" wire, rod, and tube die industry " as used herein, in- 
cludes the importation, manufacture for sale and sale by the manu- 
facturer or importer of finished and semifinished drawing dies, which 
are tools used for the elongation or deformation of wire, rod, or 
tubing, which change the diameter and/or shape of the article drawn 
and are manufactured from diamonds, wear-resisting alloys, chilled 
iron and steel, and similar other hard and wear-resisting materials, 
also such related branches of subdivisions thereof as may hereafter 
be included under the provisions of this Code by the Administrator, 
after such hearing as he may prescribe. 

The term " member of the industry " includes but without limi- 
tation any individual, partnership, association, corporation, or other 
jierson engaged in the Industry either as an employer or on his or 
its own behalf. 

The term " employer " as used herein means any emjjloyer engaged 
in the Industiy. 

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

The term "" President ", ''Act *', and '■'Administrator '' as used 
lierein mean, respectiA^ely, The President of the United States, The 
National Industrial Recoverv Act. and the Administrator of Title 
I of said Act. 

The term " association '' as used herein is defined to mean the 
Association of Wire, Rod, and Tube Die Manufacturers. Inc., or 
its successor. 

The term " code authority " means the bod}' constituted under 
Article YI hereof. 

Article III — Hours 

Section 1. No employee shall be permitted to Avork in excess of 
40 hours in any one week or 8 hours in any 2-i-hour period, or 5 
days in any seven-day period, except as herein otherwise provided. 

Sec. 2. The maximum hours and days in the foregoing section 
shall not apply to any employee on an emergency maintenance or 
emergency repair work involving breakdown or protection of life 

(68) 



69 

or property, but in any such sixn-ial case at least V/2 times his 
normal rate shall be paid for hours worked in excess of the maximum 
hours per day or per week herein provided. 

Sp:c. 3. The provisions of this Article shall not ai)ply to traveling 
salesmen or to persons employed in a managerial or executive ca- 
pacity who regularly earn more than $35,00 a week. 

Sec. 4. No emploj'er shall knowingly j^ermit any employee to work 
for any time which, when totaled with that already performed with 
another employer or employers in this Industry, exceeds the maxi- 
mum permitted herein. 

Article IV — Wages 

Section 1. No emploj^ee shall be paid less than at the rate of 40 
cents per hour. No person employed in clerical or office work shall 
be paid less than at the rate of $16.00 per week. 

Sec. 2. The above minimum rate of pay shall apply, irrespective of 
whether an employee is actually compensated on a time-rate, piece- 
Avork, or other basis. 

Sec. 3. No employee now employed at a rate in excess of the 
minimum shall be discharged and reemployed at a lower rate for the 
purpose of evading the provisions of this Code. 

Sec. 4. To the extent practicable, the wage rates of employees re- 
ceiving more than the minimum wage rate shall be equitably ad- 
justed, and in no case shall they be decreased as a result of this 
adjustment of hours, so that the existing differentials shall be main- 
tained and, to the extent practicable, recognition shall be given to 
the desirability of maintaining earnings, provided such adjustment 
has not been made since June 16, 1933. Each member of the Indus- 
try shall report all such readjustments to the Code Authority within 
30 da3^s of the effective date of this Code. 

Sec. 5. 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 

MINIMUM AGE 

Section 1. No person under 16 years of age shall be employed in 
the Industr}', nor anyone under 18 years of age at operations or occu- 
pations 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 author- 
ity in such State empov/ered to issue employment or age certificates 
or permits, showing that tlie employee is of the required age. Each 
member of the Industry shall submit to the Code Authority on or 
before February 15, 1934, a list of all such occux^ations. 

Sec. 2. In compliance with Section 7 (a) of the Act it is pro- 
vided as follows : 

(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. 



70 

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

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

Sec. 3. 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. 4. No employer shall reclassify employees or duties of occu- 
pations performed, or engaged in any other subterfuge, for the pur- 
pose of defeating the provisions of the Act or of this Code. 

Sec. 5. All employers shall post complete copies of Article III, 
IV, and V of this Code in a conspicuous place accessible to 
emploj'Ces. 

Sec. 6. Every employer shall provide for the safety and health of 
his employees at the place and during the hours of their employ- 
ment. Standards for safety and health shall be submitted by the 
Code Authority to the Administrator within six (6) months after 
tl effective date of this Code. 

Article VI — Admtnistratiox 

ORGANIZATION 

Section 1. There shall forthwith be constituted a Code Authority 
consisting of not more than 5 members of the Advisory Committee 
of the Association, two representatives of the members of the In- 
dustry who are not members of the A.ssociation (Providing the non- 
members desire such representation and signify their Avillingness to 
pa}^ their pro rata share of the cost of administering the Code), and 
one to three nonvoting appointees of the Aduiinistrator if he so 
desires. The representatives of the nonmembers shall be elected 
by the nonmembers in an}' fair manner approved by the Admin- 
istrator. 

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, 
b^daws, regulations, and any amendments when made thereto, to- 
gether with such other information as to membership, organization, 
an 1 activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

Sec. 3. In order that the Code Authority shall at all times be 
truly representative of the Industry and in other respects comply 
M'ith 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, maj^ require an ap- 
propriate modification in the method of selection of the Code 
Authority. 



71 

Sec. 4. Members of the Industry shall he 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 de- 
termined by the Code Authority, subject to review by the Adminis- 
trator, on the basis of volume of business and/or such other factors 
as may be deemed equitable to be taken into consideration. 

Sec. 5. Nothing contained in this Code shall constitute the mem- 
bers of the Code Authority partners for any purpose. Nor shall 
any members of the Code Authority be liable in any manner to any- 
one for any act or any other member, officer, agent, or employee of the 
Code Authority. Nor shall any member of the Code Authority exer- 
cising reasonable diligence in the conduct of his duties hereunder be 
liable to anyone for any action or omission to act under this Code, 
except for his own wilful misfeasance or nonfeasance. 

POWEES AND DUTIES 

Sec. 6. The Code Authority shall have the following further 
powers and duties, the exercise of which shall be reported to the Ad- 
ministrator and shall be subject to his right on review to approve or 
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 of the Code. 

(c) To obtain from members of the Industrj^ 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 
recited in Section 3 (a) of the Act, which information ancl reports 
shall be submitted hj 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- 
ber of the Industry or any other party except to such government 
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 
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 Indu.stry. 

(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 National Recovery Administration insignia solely by those 



72 

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 wath other Industries and to recommend to the 
Administrator measures for industrial planning, including stabiliza- 
tion of employment. 

Article VII — Price Lists 

Section 1. If and when the Code Authority determines, subject to 
the disapproval of the Administrator, that in any branch or sub- 
division of the Industry it has been the generally recognized practice 
to sell a specified product on the basis of printed net price lists, or 
price lists with discount sheets, and fixed terms of sale, each manu- 
facturer of such products shall, within ten (10) days after notice of 
such determination, file with the Code Authority a net price list, or a 
price list and discount sheet, as the case may be, individually prepared 
by him showing his current prices, or prices and discounts, and terms 
of sale, and the Code Authority shall immediately send copies thereof 
to all known manufacturers of such specified products. Revised 
price lists with or without discount sheets may be filed from time to 
time thereafter with the Code Authority by any manufacturer of 
such product, to become effective upon a date specified (to be a date 
not later than seven (7) days after the filing of such revised price 
lists), and copies thereof with notice of the effective date specified 
shall be innnediately sent to all known manufacturers of such prod- 
uct, any of who may file, if he so desires, revisions of his price lists 
and/or discount sheets, which shall become effective upon the date 
when the revised price list or discount sheet first filed shall go into 
effect. 

Sec. 2. If and Avhen the Code Authority shall determine, subject 
to the disapproval of the Administrator, that in any branch or sub- 
division of the Industry not now selling its product on the basis of 
price lists, with or without discomit sheets, Avith fixed terms of sale, 
the distribution or marketing conditions in said branch or subdivision 
are the same as or simiLir to the distribution or marketing condi- 
tions in a branch or subdivision of the Industry where the use of 
price lists, with or without discount sheets, is well recognized, and 
that a system of selling on net iDrice lists or price lists and discount 
sheets with fixed terms of sale should be put into effect in such 
branch or subdivision, then each manufacturer of the product or 
products of such branch or subdivision shall, within twenty (20) 
days after notice of such determination, file with the Code Authority 
net price lists or price lists and discount sheets c(mtaining fixed 
terms of sale, showing his ])rices and discounts and terms of sale, 
and such price lists and/or discount sheets may be thereafter revised 
in tli-a manner hereabove provided. Provided, that the Code Author- 
ity shall make no determination to place any product of the Industry 
(not on a price-list basis on the effective date of this Code) on a 
price-list basis, as provided in this paragraph of this Article, unless 
two thirds of the members of the industry who are at that time en- 
gaged in manufacturing such i^roduct shall affirmatively consent 
that sucli determination be made. 



73 

Sec. 3. No member of tlic Iiulustry slmll c:ell diroctly or indirectly, 
by any means whatsoever, any product oi' the industry covered by 
provisions of this Article at a price other than or at discounts other 
than or on terms of payment other than tliose jjrovidcd in his own 
current net price lists or price lists and discount sheets, provided 
that nothing herein shall prevent the sale without restriction as to 
price of any such product to another member of the Industry. 

Sec. 4. The Code Authority shall investigate the operations of this 
Article and shall within sixty (60) days after the effective date of 
the Code file with the Administrator recommendations for the adop- 
tion of appropriate regulations for the carrving out of the purpose 
of this Article VII.* 

Article VIII — Unfair Trade Practices 

The following described acts constitute unfair practices and are 
forbidden : 

A. Giving, permitting to be given, or directly offering to give 
anything of value for the purj)ose 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; provided, however, that nothing in 
this Section A shall be construed to prohibit free and general distri- 
bution of articles commonly used for advertising, except so far as 
such articles are actually used for commercial bribery, as hereinabove 
defined. 

B. Procuring, otherwise than with the consent of any member of 
the Industry, any information concerning the business of such mem- 
ber which is properly regarded by it as a trade secret, or confidential 
within its organization. 

C. Imitating or simulating any exclusive mark or brand used by 
any other member of the Industry. 

I). Disseminating, publishing, or circulating any false or mislead- 
ing information relative to any product or price for any product 
of any member of the Industry, or the credit standing or ability of 
an}" member thereof to perform any work or manufacture or produce 
any product, or to the conditions of employment among the em- 
ployees of an}^ member thereof. 

E. Inducing or attempting to induce by any means any party to 
a contract with a member of the Industry to violate such contract. 

F. Aiding or abetting any person, firm, association, or corpora- 
tion in any unfair practice described in this Article. 

G. Making or giving to any purchaser of any product of the 
Industry any guaranty or protccton in any form against advances 
or declines in the market prices of such products. 

H. Withholding from or inserting in any quotation or invoice any 
statement that makes it inaccurate in any material particular. 

I. Granting secret rebates in the form of special services, dis- 
counts, advertising allowances, or free samples. 

J. Fraudulent and deceptive practices, including false and mis- 
leading advertising, mislabeling, and misbranding. 



* See paragraph 2 of order approving this Code. 



74 

K. Enticing an employee of a competitor from his employment 
with the purpose of injuring or embarrassing such competitor in 
his business. Nothing herein shall prevent any employee from of- 
fering his services to a competitor, nor prevent any member from 
employing an employee of another member where the initiative in 
such change of employment comes from the employee. 

L. Selling or offering to sell second-hand merchandise, unless 
expressly designated and represented as such to the purchaser or 
prospective purchaser. 

Article IX — General 

Section 1. This Code and all 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 tliereof. 

Sec. 2. Such of the provisions of this Code as are not required 
by the Act may, with the approval of the Administrator, be modified 
or eliminated as changes in the circumstances or experience may 
indicate. It is contemplated that from time to time supplementary 
provisions to this Code or additional Codes will be submitted for 
the approval of the Administrator to prevent unfair competition in 
price and other unfair and destructive competitive practices and to 
effectuate the other purposes and policies of Title I of the Act con- 
sistent with the provisions thereof. 

Sec. 3. No provisions in this Code shall be interpreted or applied 
in such manner as to (1) promote monopolies or monopolistic prac- 
tices; (2) Permit or encourage unfair competition; (3) eliminate 
or oppress small enterprises; or (4:) discriminate against small 
enterprises. 

Sec. 4. If any employer in this Industry is also an employer in 
any other Industry, the provisions of this Code shall apply to and 
affect only that part of the business of such employer which is a 
part of the Industry covered by this Code. 

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

Article XI — Effective Date 

This Code shall become effective on the 10th day after its ap- 
proval by the President and shall be binding upon every person 
engaged in the Industry either as an employer or on his own behalf. 



Approved Code No. 250. 
Registry No. 1399^37. 



O 



Approved Code No. 251 
CODE OF FAIR COMPETITION 

FOR THE 

WITCH HAZEL INDUSTRY 

As Approved on February 1, 1934 



ORDER 



Approving Code of Fair Competition for the Witch Hazel 

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 Witch Hazel 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 tlip x^rpsinoTit * 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority ves'ted 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, 

Fehruary i, 193Jf. 

37486° 313-177 34 (75) 



REPORT TO THE PRESIDENT 



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 Witch 
Hazel Industiy. as proposed by the Witch Hazel Manufacturers Asso- 
ciation. The public hearing was conducted in Washington on No- 
vember 20, 1933. Every person who requested an appearance was 
freely heard in accordance with statutory and regulatory require- 
ments. 

There are eight known firms in this Industry, all of which are 
members of the Association. In other words, the Association rep- 
resents 100% of the Industry in volume and in number of firms. 

ECONOMIC AND STATISTICAL MATERIAL 

The volume of sales for the last five years has not experienced 
any material fluctuation, having ranged between $600,000 and 
$700,000 a year. The number of employees in the Industry has also 
remained at practically the same figure of 500. Whereas the number 
of employees has remained approximately the same for the last five 
years and the Code contains provisions which substantially shorten 
the average work week, there should be a great increase in employ- 
ment. The representatives of the Industry claim that the employ- 
ment figures will be increased by 40% when the Code goes into efi'ect. 
Coupled with increased employment within the Industry, there will 
also be an increased purchasing power for the individual employee 
under the Code. 

The actual manufacture of witch hazel is confined to the winter 
months because only then is the witch hazel plant in the right con- 
dition for manufacturing. The enforced necessity for concentrated 
production is a problem with which the Code has had to deal. 

RESUME or CODE PROVISIONS 

This Code establishes a 40-hour week with 8 hours additional 
during the limited season of distillation, provided such additional 
time shall be paid for at time and one third. The minimum rate 
of pay has been set at 35^ per hour for all employees except office 
workers who are placed on a minimum of Fourteen ($14.00) Dol- 
lars per week. There are exceptions to the maximum hour provi- 
sions for specified occupations but the only unusual exception is a 
still man who is limited to 30 hours per week except during the sea- 
son of distillation, when he shall be permitted to work a maximum 

(76) 



77 

of 72 hours per week. The still men are highly trained and skilled 
employees who hold the " secret " of the business ; in fact, there 
are only twenty still men in the Industry. 

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 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 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 approval of said 
Code. 

For these reasons, the Code has been approved. 

Hugh S. Johnson, 

A dministrator. 
February 1. 1934. 



CODE OF FAIK COMPETITION FOE THE WITCH HAZEL 

INDUSTKY 



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 Witch Hazel 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 " Witch Hazel Industry " (hereinafter called " the In- 
dustry "), as used herein includes the manufacture and primary dis- 
tribution of distilled extract of Witch Hazel prepared or made from 
the Hamanielis Virginiana plant and such branches or subdivisions 
thereof as may from time to time be included under the provisions 
of this Code. 

The term " primary distribution " as used herein means the sale 
by a meml)er of the Industry of the manufactured product of the 
Witch Hazel Industry. 

The term " employee " as used herein includes anyone engaged in 
the Industry in any capacit}^ recei\ang compensation for his serv- 
ices, irrespective of the nature or method of payment of such com- 
pensation. 

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

The term " stillman " as used herein includes anyone engaged 
exclusively in the operation of a still. 

The term " season of distillation " means the period when active 
distillation of Witch Hazel is practicable, which shall not exceed 
20 weeks in 12 months from October first of any year. 

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 "j "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. 

(78) 



79 

Artici.e III — Hours 

1. No employee, except outside salesmen and those specified in 
Sections 2, 3, 4, and 5 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, except that durinii the season of distillation a tolerance 
of 20% will be allow^ed; provided, that each employee be paid at 
least one and one third times his established rate for all hours worked 
in excess of 40 in any one week. 

2. No office employee and no employee engaged in a managerial 
capacity receiving less than $35.00 per week shall be permitted to 
work in excess of 44 hours per w^eek as averaged over an 8-week 
period, and in no case shall such employee be permitted to work in 
excess of 48 hours in any one week. Employees receiving $35.00 
or more per week in an executive or managerial capacity are not 
subject to any hourly limitations. 

3. No stillman shall be permitt-ed to work in excess of 30 hours per 
week except during the season of distillation, when he shall be per- 
mitted to work a maximum of 72 hours per week to permit adjust- 
ment in the hours of work to the requirements of the continuous 
technical process in which he is engaged. 

4. No watchman shall w^ork or be permitted to work in excess of 
56 hours in any one week as averaged over a two-week period. 

5. No employee engaged in the collection of the Witch Hazel 
plant shall work or be permitted to work in excess of 54 hours in 
any one week. 

6. The maximum hours fixed in the foregoing section shall not 
apply to any 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. 

7. No employee shall be permitted to work in excess of six days 
in any consecutive seven day period. 

8. No employer shall knowingly engage any employee for any 
time which when totaled with that already performed with another 
employer, or employers, exceeds the maximmn permitted herein. 

Article IV — Wages 

1. No office employee shall be paid at less than the rate of $14.00 
per week. 

No other employee shall be paid at less than the rate of 350 per 
hour. 

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

3. To the extent practicable, adjustments shall be made in rates 
of pay above the minimum prescribed herein in order to preserve 
equitable differentials existing between the various occupations in 
the Industry, which shall be reported to the Code Authority on the 
effective date of this Code. 

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



80 
Article V — General Labor Provisions 

1. No person under 16 years of age shall be employed in the In- 
dustr}^, nor anyone under 18 years of age at operations or occupa- 
tions hazardous in nature or detrimental to health. The Code Au- 
thority 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 cer- 
tificate or permit duly issued by the authority in such State em- 
powered to issue emplojanent or age certificates or permits, showing 
that the employee is of the required age. 

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

3. No employee and no one seeking emploj'^ment shall be required 
as a condition of emplojonent 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 law of 
such State imposing more stringent requirements on employer 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 or 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 — 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 three individuals, who 
shall be truly representative of the Industry, 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 discretion, may appoint 
to represent such groups or Governmental agencies as he may 
designate. 

(b) Every member of the Industry who qualifies as provided in 
section 5 of this Article shall be entitled to one vote in the nomina- 
tion and election of members of the Code Authority. The propo- 
nents of the Code shall arrange for such nomination and election 
within fourteen days of the effectiA'e date. In the interim, the Code 
Committee of the Witch Hazel Manufacturers Association shall 
serve in the capacity of the Code Authority. 

(c) Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 



81 

(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 infornuition as to membership, organization, 
and activities as the Administrator may deera necessary to effectu- 
ate the purposes of the Act. 

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

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

(a) To present from time to time to the Administrator recom- 
mendations based on conditions in this Industry as they may develop 
which will tend to effectuate the policy of the Act and the operation 
of this Code. 

(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 wrecks, 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 improving meth- 
ods or in prescribing a uniform system of accounting and reporting. 
All individual reports shall be kept confidential as to members of the 
Industry and only general summaries thereof may be published. 

(c) 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. 

(d) 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 afford an opportunity for 
mvestigation of the merits of sucn complaint and further considera- 
tion by the Code Authority pending final action, to be taken only 
upon approval by the Administrator. 

(e) Tlie Code Authority may appoint and remove and fix the 
compensation of such employees, attorneys, accountants, and officers 
as it shall deem necessary or proper for the purpose of administering 
the Code. 

(f) 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. 

3. 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. 



82 

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

5. Members of the Industry 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 expenses 
of its administration. The reasonable share of the expenses of 
administration shall be determined by the Code Authority, subject 
to approval by the Administrator. 

Article VII — Modification 

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

2. This Code, except as to provisions required b^ the Act, may be 
modified on the basis of experience or changes in circumstances, such 
modification to be based upon application by the Code Authority 
to the Administrator and subject to 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 monopo- 
lies or monopolistic practices, or to eliminate, oppress, or discriminate 
against small enterprises. 

Article IX — Effective Date 

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

Article X — Termination Date 

This Code shall terminate on June 16, 1935, or on such earlier date 
as the National Industrial Recovery Act shall cease to be effective. 



Approved Code No. 251. 
Registry No. 699-1-08. 



o 



Approved Code No. 252 

CODE OF FAIR COMPETITION 

FOR THE 

CYLINDRICAL LIQUID TIGHT PAPER CONTAINER 

INDUSTRY 

As Approved on February 1, 1934 



ORDEK 



Approving Code of Fair Competition for the CTiiiNDRiCAL Liquid 
Tight Paper Container 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 Cylindrical Liquid Tight Paper Container 
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; provided, however, 
that the provisions of Article VI, Sections 2 to 9, inclusive, insofar 
as they prescribe a waiting period between the filing with the Code 
Authority (i. e., actual receipt by the Code Authority) and the effec- 
tive date of revised price lists or revised terms and conditions of sale 
be and they are hereby stayed pending my further order; provided 
further, that within ninety days I may direct that there be a further 
hearing on such of the provisions of said Code as I may designate, 
and that any order which I may make after such hearing shall have 
the effect of a condition on the approval of said Code. 

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval recommended : 
Leo L. Berry, 

Division Administi^ator, 

Washington, D.C, 

Fehmai-y 1, 1934. 

37488° 313-178 34 (83) 



KEPOET TO THE PKESIDENT 

The President, 

The White Ewse. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Cylindrical Liquid Tight Paper Container Industry, 
conducted in Washington on November 27, 1933, in accordance with 
the provisions of Title I of the National Industrial Recovery Act. 

HOURS AND WAGES 

This Code provides a 40-hour week for factory workers with a 
weekly tolerance of eight 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 an 
eiwht-week period. 

The minimum wage rate in the North for hourly paid emploj^ees is 
400 per hour for males and 35(?i per hour for females. In the South 
the minimum wage rate for hourly paid employees is 350 per hour 
for males and 300 per hour for females. Office employees will receive 
a minimum wage of $16.00 per week in the North and $14.00 per 
week in the South. 

OPEN PRICE PLAN 

An open price plan of selling is provided, and selling below cost, 
except to meet competition, is prohibited. 

OTHER PROVISIONS 

Provision is made for furnishing the Administrator with such 
statistical data as he may require. 

ECONOMIC EFFECT OF THE CODE 

The Industry employed in 1929 about 700 persons and in 1933 
approximately 800 persons. The number of plants in the Industry 
increased from 7 in 1928 to 11 in 1933. The October 1933 figure 
represent the dull season. The Industry has sharp seasonal peaks 
in the Spring and Summer months which are generally followed by 
abrupt declines. The products are in direct competition with other 
forms of packaging at all times. Therefore, in order to maintain 
employment and share available work during dull seasons the In- 
dustry must have sufficient flexibility of hours to permit its obtaining 
its share of business during peak seasons. 

In March 1933 about 75% of the male laborers and about 90% 
of the female laborers received less than the proposed minimum wage 
rates. The total increase in payrolls as a result of the Code will be 
about 15%. 

(84) 



85 

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 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 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 monopoliesi 
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. 
February 1, 1934. 



CODE OF FAIR COMPETITION FOR THE CYLINDRICAL 
LIQUID TIGHT PAPER CONTAINER INDUSTRY 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following is hereby established as a Code of Fair 
Competition for the above-named Industry and shall be binding 
on every member thereof. 

Article I — Definitions 

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

" Industry " — The manufacture of Cylindrical Liquid Tight Con- 
tainers made completely of paper or with paper bodies and metal 
tops or bottoms, or both, up to and including liquid capacity of one 
{1) gallon. 

Member ■' — A natural person, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, or receiver, engaged in 
Buch Industry. 

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

"Administrator " — The Administrator for Industrial Recovery 
under Title I in the Act. 

Article II — Organization and Administration 

1. The members of the Executive Committee of the National As- 
sociation of Liquid Tight Paper Container Manufacturers, together 
with such person or persons as may be designated by the Adminis- 
trator, are hereby constituted the Code Authority of the Industry, 
The members of the Code Authority designated by the Administra- 
tor shall act in an advisory capaciy, shall have no vote, and shall 
serve without expense to the Industry. 

2. The said Association shall impose no inequitable restrictions 
on membership and shall file with the Administrator certified copies 
of any amendments of its By-Laws relating to eligibility or admis- 
sion to membership in said Association, or relating to the method 
of selection of the members of such Executive Committee which 
said Association may hereafter adopt. 

3. The Administrator may at any time prescribe a different method 
for selecting the Industry members of the Code Authority, and 
thereafter such members shall be chosen in the manner so pre- 
scribed. 

(86) 



87 

4. The Code Authority is charged generally with the duty of ad- 
ministering this Code. If the Administrator shall determine that 
any action of the Code Authority or any agency thereof may be 
unfair or unjust or contrary to the public interest, the Adminis- 
trator may require that such action be suspended to afford an oppor- 
tunity for investigation of the merits of such action and further 
consideration by the Code Authority or agency pending final action 
which shall not be effective unless the Administrator approves or 
unless he shall fail to disapprove after thirty days' notice to him of 
intention to proceed with such action in its original or modified form. 

5. The expenses of administering this Code shall be borne pro 
rata, in accordance with a formula to be adopted by the Code Au- 
thority, by all members of the Industry who accept the benefit of 
the services of the Code Authority or otherwise assent to this Code. 

6. The Code Authority shall have power to investigate alleged 
violations of this Code and acts or courses of conduct by any member 
which are or appear to be contrary to the policy of the Act or which 
tend or may tend to render ineffective this Code and to report the 
same with recommendations to the Administrator. 

7. The Code Authority is hereby constituted the agency to en- 
deavor to effect, by arbitral proceedings or otherwise, adjustments 
of contracts entered into by members of the Industry, where the 
costs of executing such contracts are increased through the applica- 
tion of the provisions of the Act or of this Code. 

Article III — Houes 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 : 

SCHEDtnLE OF WORKING HOURS 

(a) Watchmen: Fifty-six (56) hours in any one week, but not 
more than six (6) days in any seven (7) day period; or fifty-six (56) 
hours in any one week, but not to exceed eight (8) hours in any one 
day. 

(b) Chauffeurs, truck drivers, and their helpers: One hundred 
eighty (180) hours in any period of four (4) consecutive weeks, pro- 
vided, however, that time worked in excess of nine (9) hours in any 
one day or forty-five (45) hours in any one week shall be paid for 
as not less than time and one third. 

(c) Engineers, firemen, electricians, filter plant emploj'ees, elec- 
tric and hydroelectric operators: One hundred sixty-eight (168) 
hours in any period of four (4) consecutive weeks, provided, how- 
ever, that time worked in excess of nine (9) hours in any one day 
or forty-five (45) hours in any one week 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 worlv connected with the opera- 
tion of such plant, mill, or factory: Eight (8) hours in any one day 
and forty (40) hours in any one week, provided, however, that 
these maximum limits may be exceeded for any reason at any time 
provided that all time worked in exce,ss of the maximums pre- 



88 

scribed shall be paid for as not less than time and one third, and 
provided further, that no employee shall be required or permitted to 
work in excess of ten (10) hours in any one day or forty-eight (48) 
hours in any one week. 

(e) Emploj'ees regiilarly engaged in a managerial or executive 
cajaacity and their personal secretaries, foremen, and supervisors 
receiving thirty-five dollars ($35.00) or more per week, outside sales- 
men and outside servicemen : No limitation. 

(f) All other employees: Forty-eight (48) hours in any one week 
and not to exceed three hundred twenty (320) hours in any period 
of eight (8) consecutive weeks. 

2. No limitation contained in said schedule shall apply to em- 
ployees of any class when engaged in emergency repairs or emergency 
maintenance work occasioned by break-downs or involving protection 
of life or property, provided, however, that all time worked in excess 
of the limitations prescribed in said schedule shall be paid for as not 
less than time and one third. 

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 in this industry, exceeds the maxi- 
mum permitted herein. 

Article IV — Wages 

1. The minimum rate of wage of any laborer, mechanical worker, 
or artisan employed in any plant, mill, or factory, or on work con- 
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 the territory 
of the United States except the States named in subdivision (b) 
hereof: Male labor, 40 cents per hour; Female labor, 35 cents per 
hour. 

(b^ In the Southern zone, which shall consist of the States of 
Virginia, Tennessee, North Carolina, South Carolina, Georgia, 
Florida, Alabama, Mississippi, Louisiana, Arkansas, and Texas: 
Male labor, 35 cents per hour ; Female labor, 80 cents per hour. 

2. The minimum rates of wages for all other employees 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, $14.00 per 
week. 

(c) Part-time employees covered by the provisions of this section 
shall be paid at the rate of not less than 40^ per hour in the North 
and 350 per hour in the South. 

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

4. Female employees performing substantially the same work as 
male employees shall receive the same rate of pay as male employees. 
The Code Authority shall, within 90 days after the effective date of 
this Code, file with the Administrator a description of all occupa- 
tions in the Industry in which both men and women are employed. 



89 

5. The wage rates of all employees receiving more tlian tlie mini- 
mum rates herein prescribed shall be reviewed and such adjustments, 
if any, made therein as are equitable in the light of all the circum- 
stances, and within sixty (GO) days after the effective date hereof 
the Code Authority sluill report to the Administrator the action 
taken by all members of the Industry under this section. 

6. Office boys and girls under 18 years of age, to the extent of no 
more than 5% of the total number of employees described in Section 
2 hereof, may be employed at a wage of not less than 80% of the 
minimum prescribed by said Section, provided that at least one such 
oflice boy or girl may be employed by each member. 

7. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a 
wage 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 emploj-ment on such basis. Each member shall file 
with the Code Authority a list of all such persons employed by him. 
Tlie provision of this Section requiring a certificate of authority 
shall not become effective until sixty days after the effective date 
of this Code. 

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 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 
Jabor or their agents in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. No em- 
ployee and no one seeking employment shall be required, as a condi- 
tion of employment, to join any company union or to refrain from 
joining, organizing, or assisting a labor organization of his own 
choosing. Employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of employment 
approved or prescribed by the President. 

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



90 

4. No emploj^er 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. 

5. All employers shall post copies of Article III, IV, and V of 
this Code in conspicuous places accessible to employees. 

6. Every employer shall make reasonable provisions for the safety 
and health of his employees at the place and during the hours of 
their employment. Standards for safety and health shall be sub- 
mitted by the Code Authority to the Administrator within six (6) 
months after the effective date of this Code. 

7. No provision in this Code shall supersede provisions as to hours, 
"wages, and conditions of employment which are established for 
specific projects by competent governmental authority acting in ac- 
cordance 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. 

8. The Code Authority shall make a study of conditions in the 
industry to determine the feasibility of the adoption of a shorter 
working week, and shall, within three (3) months after the effective 
date of this Code, make a report of its findings to the 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 employment. 

9. The manufacture or partial manufacture of any product of 
the Industry in homes shall be prohibited. 

Article VI — Accounting-Selling 

1. The Code Authority shall, as soon as practicable, formulate a 
standard method of accounting and costing for the industry and 
submit the same to the Administrator. When it shall have been 
approved by the Administrator every member shall use an accounting 
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 In- 
dustrj^ 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 clays 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 
filed a schedule conforming in respect to price and terms of sale 
with the schedule at any time on file which 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 pertaining 
to a single order, a commitment for future delivery, or a contract. 
All such original schedules shall become effective on the date fixed 
by the Code Authority as provided in Section 2 hereof. 



91 

5. A revised schedule or schedules, or a new schedule or schedules, 
or a notice of withdrawal of a schedule previously filed may be filed 
by a member with the Code Authority at any time, provided, how-ever, 
that any member who withdraws a schedule without substituting a 
new schedule therefor shall be deemed to have filed a schedule con- 
forming in respect to price and terms of sale with the schedule at 
any time thereafter on file which states the lowest price and the most 
favorable terms. Any schedule or notice filed hereunder shall be- 
come 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 who manufacture any particular product with copies of 
all schedules, revised schedules, and notices of withdrawal, wdiich 
pertain to such product. Immediately upon receipt of information 
relative to the withdrawal of a price for any product, any member 
may file notice of withdrawal of his own price for the same product 
effective as of the same date as the notice of withdrawal of such 
other member. Immediately 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 member, and effective on 
the same date, or he 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 mem- 
ber, 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 determined in 
the manner provided in Section 11 hereof, provided, however, that 
any member may by notice to the Code Authority, adopt as his own 
a lower price filed hj another designated member. Such adoption 
shall become automatically void after 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 Industry, 
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 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 any price schedule for such product 
then on file. 

9. The Code Authority shall furnish at cost to any nonmember 
requesting them, copies of any price schedules which have been filed 
with it. Such price schedules shall be made available to nonmem- 
bers 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 such Section. 

11. Cost, for the purposes of this Article, shall be determined 
pursuant to the method of accounting and costing prescribed as 



92 

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 rules as the Code Authority 
shall from time to time prescribe with the approval of the Admin- 
istrator. 

12. For the purpose of determining whether Sections 7 and 10 
hereof have been complied vfith, every member shall, upon the 
request of the Code Authority, furnish a designated agency of the 
Code Authority 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 deliv- 
ery, terms of billing, cash or trade discounts allowed, and other per- 
tinent facts relating to such quotation, contract, or sale. 

13. Nothing herein contained shall be construed to prevent the 
disposition oi distress merchandise required to be sold to liquidate 
a defunct or insolvent business or of discontinued lines, damaged 
goods, or seconds, in such manner, as such price and such terms and 
conditions as the Code Authority and the Administrator may 
approve. 

14. Nothing herein contained shall be construed to prevent the 
fulfillment of a bona fide contract existing on the effective date of 
this Code.* 

Article VII — Reports and Statistics 

1. Each member shall prepare and file with an impartial agent 
designated by the Code Authority at such times and in such manner 
as it may prescribe, such statistics, data, and information relating 
to plant capacity, volume of production, volume of sales in units 
and dollars, orders received, unfilled order, stocks on hand, inven- 
tor}", 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, accounts, and records of such member by any disinterested 
accountant or accountants or other qualified person or persons desig- 
nated by the Code Authority. 

2. Except as otherwise provided in the Act, or in this Code, all 
etatistics, data, and information filed or required in accordance with 
the provisions of this Code shall be confidential and the statistics, 
data, and information of one member shall not be revealed to another 
member. No such data or information 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 Author- 
ity shall arrange in such manner as it may determine for the current 
publication of industry statistics to members. 

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

4. In addition to information required to be submitted to the 
Code Authority there shall be furnished to Government Agencies 

* See paTagi'aph 2 of order approving this Cude. 



93 

such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act. 

Article VIII — Monopolies 

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 IX — Recommendations 

1. The Code Authority may, from time to time, present to the 
Administrator recommendations based on conditions in the Indus- 
try which will tend to effectuate the operation of this Code and the 
policy of the act, and in particular along the following lines : 

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

(b) For the establishment of plans to equalize production with 
demand so that the interests of the Industry and the public may 
be properly served. 

(c) For dealing with any other inequality that may arise to 
endanger the stability of the Industry and of production and 
employment. 

(d) For an increase or decrease in the number of Industry mem- 
bers of the Code Authority and/or for a change in the method of 
choosing such members. 

2. For the purpose of assisting the Code Authorities of the Paper 
Manufacturing and/or Converting Industries in the adjustment of 
all labor disputes and labor complaints arising within such indus- 
tries, the Code Authority shall consider the advisability of creating a 
Joint Industrial Relations Board for such Industries and shall re- 
port its recommendations to the Administrator. 

3. Recommendations made pursuant to Sections 1 and 2 hereof 
when approved by the Administrator shall have the same force and 
effect as other provisions of this Code. 

Article X — Trade Practices 

1, The following are hereby constituted Trade Practices for the 
Industry and failure to comply with the provisions thereof shall be 
a violation of this Code. 

(a) Members of the Industry shall not practice deception in re- 

§ard to that which is sold or its selling price by false or misleading 
escription, statement, record, or undisclosed consideration. 

(b) Members shall refiain from dumping, deferred delivery, ex- 
tension of stated credit, and secret rebates. 

(c) Members shall not wilfully injure by falsely defaming a com- 
petitor's goods, credit, or ability to perform his contracts. 

(d) Members shall not wilfully induce or attempt to induce the 
breach of a competitor's contract. 

(e) No member shall give, permit to be given, or directly offer to 
give, anything of value for the purpose of influencing or rewarding 



94 

the action of any employee, agent, or representative of another in 
rehition to the business of the employer of such emploj^ee, the prin- 
cipal of such agent or the represented party, without the loiowledge 
of such employer, princii^al, or party. The foregoing 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 defined. 

(f ) No member of the Industry shall ship goods on consignment 
except under circumstances to be defined by the Code Authority, 
where peculiar circumstances of the industry require the practice. 

2, Discriimnation. — By the use of wholesalers as sales agents, 
whereby such selected wholesalers are sold at special prices below 
those given other wholesalers for a like quantity in one shipment ; or 
the giving of such wholesalers' discounts, commissions, terms, and/or 
conditions of sale different from those extended other wholesalers in 
the same competitive territory for a like quantity; is discrimination, 
unfair trade practice, and a violation of the provisions of this Code. 
The term " wholesaler " is defined as being a corporation, partner- 
ship, or person engaged in the buying of merchandise for resale to the 
various classifications of the trade such as jobbers, manufacturers, 
dairies, retailers, consumers, etc. 

3. In the event of a demand upon any member for a container not 
previously or regularly manufactured and not included in members' 
previously filed schedules and definitions, the member may set up 
temporary price bearing a relationship in a normal ratio to the ca- 
pacity, dimensions, weight of stock, etc., of nearest comparable size 
or sizes included in the filed schedules and such price shall simul- 
taneously be filed by the member with the Code Authority. 

(a) Members are responsible for the Acts of their sales repre- 
sentatives or sales agents in respect to all provisions of this Code 
pertaining to sales and specifically as provided in Sections 2, 3, and 4 
Article VI. Violations of the provisions of this Code as pertain- 
ing to sales by Members' sales representatives or Sales Agents con- 
stitute a violation on the part of the Member. 

(b) The giving by Members or their representatives or sales 
agents of secret commissions, secret or open rebates, refunds or 
credits in the form of money, presents, free goods, advertising allow- 
ances or otherwise for the purpose of inducing sales or contracts, is 
a direct violation of the provisions of this Code. 

(c) Members' sales representatives or sales agents are persons, 
partnerships or corporations employed by a Member or Members on 
whole or part-time basis; and compensated on the basis of salary, 
commission, both salary and commission or otherwise. 

5. Members desiring to employ as sales representatives persons, 
partnerships, corporations, brokers, or commission merchants on a 
part-time basis must first apply to the Code Authority for approval 
of such employment. The principle of this section being to prevent 
Members from employing as sales representatives concerns who buy 
merchandise for their own account, for their associates, employers, 
partners, or subscribers, thereby securing a commission or other 
compensation from a Member or Members covering purchases for 
their own account or for the benefit of their connections. 



95 

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 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 industr}^, 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 Adminis- 
trator, be modified and eliminated as changes in circumstances 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 thereof. 

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

Approved Code No. 252. 
Registry No. 406-10. 

O 



t 



Approved Code No. 253 
CODE OF FAIR COMPETITION 

FOR THE 

ANIMAL SOFT HAIR INDUSTRY 

As Approved on February 2, 1934 



ORDER 



Approving Code of Fair Competition for the Animal Soft Hair 

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 Animal Soft Hair Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 

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, 
Adminhtrator for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division AdnvinistratoT. 

Washington, D.C, 

Felmary 2, 1931^. 

37669° 313-187 34 (97) 



REPORT TO THE PRESIDENT 

The President, 

The White Hou^e. 

Sir : A Public Hearing on the Code of Fair Competition for the 
Animal Soft Hair Industry, submitted by the American Soft Hair 
Manufacturers Association, Inc., located at 545 Fifth Avenue, New 
York, N. Y., was conductecl in Washington on the 6th of December, 
1933. in accordance with the provisions of the National Industrial 
Recovery Act. The Association claims to represent 95 percent of the 
Industr3^ 

The maximum hours permitted under this Code are forty (40) 
per week, with the exception of combing machine operators, receiving 
more than $35.00 per week, who are permitted to work forty-eight 
(48) hours per week. No employee engaged in processing operations 
shall be permitted to work more than five (5) days per week. Work- 
ing daily hours are limited to those between 8 : 00 a.m. and 5 : 30 p.m. 
with 1 hour for lunch. 

The minimum rate of pay is 37^^* per hour except combers, who 
will receive not less than 50^ per hour. Provision is made for an 
equitable adjustment of all wages above the minimum. Where 
female employees perform the same work as male employees they are 
to receive the same rate of pay. 

This industry consists of only 10 establishments, all located in the 
City of New York. The invested capital in this Industry in 1933 is 
estimated to be $125,000.00. The average sales represent 23% of 
the maximum production of which this industry is capable. 

This industry imports animal soft hair from China, Russia, and 
Germany because the domestic supply is not large enough. This 
imported hair represents about 10% of the hair used by this industry. 
The outlets for this industry are brush manufacturers, furriers, and 
jobbers, named in the order of volume used. 

The proposed Code will increase employment approximately 20% 
and will mean an average wage increase of $2.78 per week per 
employee. 

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 c^.structions to the free flow of interstate and foreign 
commerce Avliich tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 

(98) 



99 

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, 
b}^ 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. 

(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 evidence 
adduced during this hearing and from recommendations and reports 
of the various Advisory Boards it is believed that this Code as now 
proposed and revised represents an effective, practical, equitable 
solution for this industry and for these reasons this Code has been 
approved. 

Respectfully, 

Hugh S. Johnson, 

A dininistrator. 
February 2, 1934. 



CODE OF FAIR COMPETITION FOR THE ANIMAL SOFT 
HAIR 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 Animal Soft Hair Industry and shall be the standards 
of fair competition for this industry and binding upon every mem- 
ber thereof. 

Article II — Definitions 

1. The term "Animal Soft Hair Industry " as used herein, shall 
mean the processing for sale and sale by the processor of animal soft 
hair to be used in the manufacture of brushes and/or other products, 
and such related branches or subdivisions as may fi"om 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 '' member of the industry '' includes, but without limi- 
tation, any individual, partnership, association, corporation, or other 
form of enter^jrise engaged in the industry, either as an employer 
or on his or its own behalf. 

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

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

Article III— Hours 

1. No employee shall be permitted to work in excess of forty (40) 
hours in any one week or eight (8) hours in any one day, except as 
otherwise herein provided. 

(a) Combing machine operators who receive more than thirty-five 
dollars ($35.00) per week shall be permitted to work forty-eight (48) 
hours in aii}^ one week and ten (10) hours in any one day. 

2. The recognized hours of work shall be between 8 : 00 a.m. and 
6:30 p.m. with one (1) hour for lunch. 

3. Employees engaged in any processing operation shall not be 
permitted to work more than five (5) daj's in any seven (7) day 
period. 

4. Members of the industry, owners, partners, officers, etc., while 
doing productive work, shall be governed by the provisions of this 
Article. 

(100) 



101 

5. The maximnm hours heroin ostablislied shall not apply to mem- 
bers of the industry when engaged in an executive, administrative, or 
supervisory capacity. 

C. 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 — Waoes 

1. No employee shall be paid, in any pay period, less than at the 
rate of thirty-seven and a half cents (^Ti/o^') per hour, except comb- 
ers who shall be paid not less than fifty cents (50^/') per hour. 

2. Female employees performing substantially the same work as 
male employees shall receive the same rate of pay. 

3. This article establishes a minimum rate of pay which shall 
apply, irrespective of whether an emploj^ee is actually compensated 
on a time rate, piecework performance or other basis. 

4. It is the policy of the members of this industry to refrain from 
reducing the compensation for employment wdiich 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; ancl, unless, since such date such adjustments 
have been made, all members of the industry shall endeavor to 
increase the pay of all employees in excess of the minimum w^age, as 
h'orein set forth, by an equitable adjustment of all pay schedules. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be enployed 
in this industry; nor anyone under eighteen (18) years of age at 
operations or occupations which are hazardous in nature or detri- 
mental 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 emploj^ee 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 interference, restraint, or coercion of employers of 
labor, or their agents, 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 on 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 occupations 
performed as they existed on October 1, 1933, or engage in any other 



102 

subterfuge, for the purpose of defeating the purposes of the Act or 
of this Code. 

4. No provision in this Code shall supersede any State or Federal 
law "which imposes on employers more stringent requirements as to 
age of employees, wages, hours of work, or as to safety, health, sani- 
tary or general working conditions, than are imposed by this Code. 

5. Every employer shall provide for the safety and health of his 
employees at the place and during the hours of their employment. 

6. All employers shall post and keep posted complete copies of 
this Code in conspicuous places accessible to employees. 

Article VI — Home Work 

1. On and after the effective date homework in this industry is 
hereby prohibited. 

Article VII — Administration 

ORGANIZATION AND CONSTITUTION 

1. A Code Authority is hereby established to cooperate with the 
Administrator in the administration of this code and shall consist 
of five (5) members to be chosen by the industry through a fair 
method of selection, approved by the Administrator, to serve for a 
period of one year from the date of their selection. The Adminis- 
trator in his discretion may appoint not more than three (3) addi- 
tional members without ^'ote, 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) Vacancies in the personnel of the Code Authority selected 
by the industry shall be filled, pending selection as provided for the 
appointment of original members, through approval by the Admin- 
istrator upon nomination of the Code Authority. 

2. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
impose no inequitable restriction on membership, and shall 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 memberships, organization and activi- 
ties as the Administrator may deem necessary to effectuate the 
purpose of the Act. 

3. In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with 
the provisions of the Act, the Administrator may prescribe such 
hearings as he may deem j^roper; 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. 

4. No inequitable restrictions on admission to the American Soft 
Hair Manufacturers Association, Inc., or any other trade associa- 
tion or organized group, participating in the activities of the Code 
Authority shall be imposed, and any member of the industry shall 
be eligible for membership in any such trade association or organized 



103 

group upon compliance with the provisions of the bylaws relating 
to membership, provided that any person applying for such mem- 
bership shall, in addition to tlie payment of such dues as are im- 
posed upon and paid by all other members, accept a reasonable and 
equitable share of the cost of code administration. Such members 
of the industry who do not choose to become members of any trade 
association or organized group may participate in the activities of 
the Code Authority as herein provided by paying to the Code 
Authority such proportionate part of the cost of code administration 
as the Code Authority, subject to the approval of the Administra- 
tor, shall prescribe as fair and equitable. 

5. Nothing contained in this Code shall constitute the members 
of the Code Authority partners for any purpose. Nor shall any 
member of the Code Authority be liable in any manner to anyone for 
any act of any other member, officer, agent, or employee of the Code 
Authority. Nor shall any member of the Code Authority, exercising 
reasonable diligence in the conduct of his duties hereunder, be liable 
to anyone for any action or omission to act under tliis Code, except 
for his own misfeasance or nonfeasance. 

POWERS AND DUTIES 

6. The Code Authority shall have the following further powers 
aiid duties to the extent permitted by the Act, 

(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 amendments, exceptions, or modifications, 
which amendments and/or modifications, upon approval by the Ad- 
ministrator, after such notice and hearing as he may prescribe, shall 
have the same force and effect as any other provision of the Code. 

(b) To adopt bylaAvs and rules and regulations for its procedure 
and for the administration and enforcement of this 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 government 
agencies as the Administrator may designate ; provided that nothing 
in this Code shall relieve an}^ member of the industry of any existing 
obligations to furnish reports to any government agency. No indi- 
vidual report 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 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. 



104 

(f ) To secure from members of this industry who assent to this 
Code and/or participate in the activities of the Code Authority such 
proportionate payment of the reasonable expense of maintaining the 
Code Authority as may be determined by the Code Authority and 
approved by the Administrator. 

(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 Avith, 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. 

(i) Each member of the industry shall keep an accurate record 
of all transactions sufficient in detail as shall be prescribed by the 
Code Authority, with the approval of the Administrator. 

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 (30) days to afford 
an opportunity for investigation of the merits of such action and 
further consideration by such Code Authority or agenc}'^ pending 
final action, which shall be taken only upon approval by the 
Administrator. 

Article VIII — Sales Provisions 

1. No member of this industry shall sell, except to another member 
of the industry, any product thereof at a price below his own in- 
dividual cost of production, provided, however, that in any specific 
instance in order to meet competition he may sell such product at a 
price not below the lowest price of a comparable item on file with 
the Code Authority. 

Article IX — Price Lists 

1. Each member of this industry shall file a schedule of his prices 
and discounts with the Code Authority to become effective imme- 
diately upon receipt by the Code Authority; such original schedule 
may, from time to time, be revised by filing with the Code Authority 
a revised schedule of such prices and discounts to become effective 
in the same manner as provided for original schedules. 

2. All schedules filed in accordance with the provisions of this 
Article shall be based upon an adequate cost finding method pre- 
Bcribed by the Code Authority and approved by the Administrator. 

(a) Discontinued, obsolete, or distress merchandise may be sold 
with the approval of the Code Authority upon such terms and con- 
ditions as it may require; appeal from the decision of the Code 
Authority upon any application for the sale of such merchandise 
may be had direct to the Administrator and the decision of the 
Administrator in such case shall govern the sale and disposal of the 
merchandise covered by such application. 



105 

Article X — Trade Practices 

_ 1. The following practices constitute unfair methods of competi- 
tion for members of the industry and are prohibited: 

(a) No member of the industry sliall 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 prepara- 
tion of such goods. 

(b) No member of the industry shall make any statement or pub- 
lish advertising which refers inaccurately in any material partic- 
ular to any competitors or their goods, prices, values, credit terms, 
policies, or services. 

(c) 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 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. 

(d) No member of the industry shall attempt to induce the breach 
of an existing contract between a competitor and his employee or 
customer or source of supply; nor shall any such member interfere 
with or obstruct the performance of such contractural duties or 
services. 

(e) 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 
anyway misrepresent any goods (including but without limitation its 
use, trademark, grade, quality, quantity, origin, size, substance, char- 
acter, nature, finish, material, content, or preparation) or credit 
terms, values, policies, services of the nature, or form of the business 
conducted. 

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 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, may 
be modified or amended on the basis of experience or changes in 
circumstances, such modifications or amendments to be based upon 
application to the Administrator and such notice and hearing as he 
shall specify, and to become effective on approval of the President, 
unless otherwise provided. 

Article XII — Monopolies, Etc. 

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



106 

Article XIII — Price Increases 

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 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 XIV — Effective Date 

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



Approved Code No. 253. 
Registry No. 1627-05 



o 



Approved Code No. 254 
CODE OF FAIR COMPETITION 

FOR THE 

ATHLETIC GOODS MANUFACTURING INDUSTRY 

As Approved on February 2, 1934 



ORDER 



Approving Code of Fair Competition for the Athletic Goods 
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 Athletic Goods Manufacturing Industry, 
and hearings having been duly held thereon and the annexed re- 
port 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 that 
the continued participation of each of the trade associations par- 
ticipating in the selection or activities of the Code Authority after 
thirty days from the effective date of this Code shall be contingent 
upon their amending their respective constitutions and bylaws to 
the satisfaction of the Administrator; and provided further, that 
within ninety days I may direct that there be a further hearing on 
such of the provisions of said Code as I may designate, and that 
any order which I may make after such hearing shall have the 
effect of a condition on the approval of said Code. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

Fehruary 2, lOSIf. 

37670° 313-186 34 (107) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: A public hearing on the Code of Fair Competition for the 
Athletic Goods Manufacturing Industry was conducted in Washing- 
ton on November 10, 1933, in accordance with the provisions of the 
National Industrial JRecovery Act. This Code was submitted by the 
Athletic Goods Manufacturers Association, located in New York; 
the National Association of Golf Club Manufacturers, located in 
New York; the Golf Ball Manufacturers Association, located in 
Providence, Rhode Island ; the Athletic Shoe Manufacturers Associa- 
tion, located in Cincinnati, Ohio; the Tennis Racket Manufacturers 
Association, located in North Attleboro, Massachusetts; and the 
Golf Bag Manufacturers Association, located in Chicago, Illinois. 
These Associations claim to represent approximately 87 percent of 
the Industry. 

After the Code was submitted by the above-named Associations 
the Sporting Goods and Athletic Wear Association signified their 
desire to come under the provisions of the Code for the Athletic 
Goods Manufacturing Industry. They were represented at the hear- 
ing and participated in the formulation of this Code. 

The maximum hours established in this Code are forty (40) per 
week for employees engaged in accounting, clerical, stenographic, or 
similar work, with a provision for sixteen (16) additional hours in 
any chosen thirteen (13) week period. Employees engaged in plant, 
factory, or mechanical work are not permitted to work in excess of 
1,040 hours in any six (6) month period, and are to be paid time 
and one third for all hours worked in excess of eight (8) hours in 
any one day or forty-four (44) in any one week, and that no such 
employee shall be permitted to work in excess of ten (10) hours in 
any one day or forty-eight (48) hours in any one week. 

Exceptions as to hours are granted to employees in an executive, 
managerial, supervisory, or technical capacity, and their immediate 
assistants, who receive $35.00 per week or more, and to outside sales- 
men and emergency workers. Chauffeurs, engineers, firemen, water 
tenders, oilers, or maintenance men are not permitted to work in 
excess of forty-eight (48) hours per week. The maximum hours for 
watchmen are fifty-six (56) per week. 

In 1929 this Industry operated approximately fifty (50) hours per 
week and in 1931 approximately forty-eight (48) hours per week. 
During 1929 approximately 10,793 wage earners were employed in 
the Industry and in 1931 there were approximately 10,176 wage earn- 
ers. It is estimated that a forty-five (45) hour week would bring 
employment back to the 1929 level. This Industry should be com- 
mended on the establishment of a forty (40) hour week, inasmuch 

(108) 



109 

as it will employ even more workers than were employed in 1929. 
On the basis of the forty (40) hour week approximately 2,035 workers 
will benefit through reemployment. 

The Code establishes minima ranging from $14.00 to $15.00 per 
week according to locality, and provides for adjustment of wages 
above the minimum. The minimum wage for empk)yees paid on 
an hourly basis is thirty-five (35) cents per hour, with exceptions 
for workers between 16 and 21 years of age who are engaged in light 
work, such as messengers and junior clerks; also for beginners and 
apprentices. The minimum for these classes of employees is twenty- 
eight (28) cents per hour. Handicapped persons doing light work 
and whose earning capacity is limited may be employed at rates 
below the minimum, provided the employer obtains a certificate from 
the State authority designated by the United States Department of 
Labor. The number of these subminimum employees is not to 
exceed 10 percent of the total number of a member's employees. 
Provision is made that female employees performing substantially 
the same work as male employees shall receive the same rate of pay. 
A wage differential of two and one half cents per hour is allowed 
for the Southern district. 

Home work is to be eliminated from this Industry, except that for 
a period of one year from the effective date of this Code low-grade 
baseballs and playground balls may be sewn at home, provided that 
the compensation therefor is not less than the rate of pay in effect for 
such work on July 15, 1929, plus an increase of 20 percent. It 
is further provided that the Code Authority shall investigate the 
home work problem within ninety days after the effective date of 
this Code and report its findings to the Administrator. It would seem 
inadvisable to entirely eliminate home work at this time for the 
reason that it would not increase employment in the industry and 
would only serve to work a hardship on several small communities 
where this type of work is being done on an extensive scale. 

Wages in this Industry represented 22.5 percent of the value of 
products in 1929, as compared with 16.5 percent for all industries 
combined. In 1931 wages in this line of activity represented 22.8 
percent of the value of products, as compared with 17.5 percent for 
combined industries. 

Wage earners in 1931, on a 48-hour basis, were paid an average 
of 44.2 cents per hour, or $21.22 per week. 

The increase in price to the purchaser should not represent moro 
than 12 percent by the increased wage rates and shortened hours. 
If wages in this Industry are maintained at the 1929 hourly average, 
i.e., 46.8 cents per hour, and on the basis of a 40-hour week, the 
total pay roll would increase approximately three million dollars, or 
26.5 percent, over the 1931 pay roll total. 

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- 



110 

vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action amon^ 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 
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- 
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- 
tions are trade associations truly representative of the aforesaid 
Industry; and that participation in the selection or activities of the 
Code Authority after thirty days from the effective date of this Code 
shall be contingent upon their amending their respective constitutions 
and bylaAvs to the satisfaction of the Administrator. 

(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 
evidence 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 affective, prac- 
tical, equitable solution for this Industry and for these reasons this 
Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dmitvistrcdo-r. 
February 2, 1934. 



CODE OF FAIR COMPETITION FOR THE ATHLETIC 
GOODS MANUFACTURING 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 Athletic Goods Manufacturing Industry and shall be 
the standard of fair competition for this Industry and binding upon 
every member thereof. 

Article II — Definitions 

1. The term "Athletic Goods Manufacturing Industry ", as used 
herein, includes all manufacturers who produce and/or wholesalers 
who import athletic goods, but does not include retailers, whether 
or not they are also importers of athletic goods. 

2. The term "Athletic Goods ", as used herein, includes all the 
balls, implements, and equipment used in any or all of the athletic 
games or sports enumerated below; excepting those used for the 
building and/or maintenance of the courts, fields, grounds, and pools 
where such games are played : 

fa) Golf. 

(b) Tennis, court tennis, badminton, racquets, squash racquets, 
squash tennis, handball. 

(c) Football, Basket Ball, Soccer, Rugby Football, Volley Ball, 
Water Polo, and all other athletic games using an inflated ball. 

(d) Baseball, including all variations thereof, played with a hard 
or soft ball and bat. 

(e) LaCrosse. 

(f) Polo and hockey, including all variations thereof, excepting 
skates. 

(g) Track and Field Athletics, 
(h) Boxing and Wrestling. 

(i) Archery. 

(j) Cricket. 

(k) Felt and/or chenille emblems, letters, and pennants. The 
term also includes gymnasium and playground equipment, medicine 
balls, uniforms used for athletic purposes (except the juvenile sizes 
used as play suits) ; and other similar athletic wear manufactured 
exclusively for athletic purposes; and especially constructed track 
shoes and athletic shoes worn by players in the games of baseball 
and football only. 

3. The term " Employee ", as used herein, includes any person en- 
gaged in any phase of the industry, in any capacity, irrespective of 
the method of payment of his compensation, except a member of the 
industry. 

(Ill) 



112 

4. The term " employer ", as used herein, inchules anyone for 
"uhose benefit such an employee is so engaged. 

5. The term " member of the industry " inchides 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. 

6. The term " piecework basis " includes all payment of wages 
by pieces or quantity produced, including all modifications of piece- 
work basis such as the Bedeau System of Wage Payments. 

7. The term '' wage " shall be defined as the rate of pay per hour 
to those whose services are paid on that basis. 

8. The term " salary " shall be defined as the amount paid per 
week to those whose services are paid on this basis. 

9. Population for the purpose of this Code shall be determined by 
reference to the 1930 Federal census. 

10. The term " southern district '' as used herein, means the States 
of Virginia, West Virginia, North Carolina, South Carolina, Geor- 
gia, Alabama, Florida, Mississippi, Louisiana, Tennessee, Kentucky, 
Oklahoma, Arkansas, Texas, New Mexico, and Arizona. The 
Northern district includes all other states and the District of 
Columbia. 

Article III — Hours 

Section 1. No employee engaged in accounting, clerical, steno- 
graphic, or similar work, shall be permitted to work in excess of forty 
(40) hours per week, except that any such employee may be per- 
mitted to work sixteen (16) additional hours in any chosen consecu- 
tive thirteen (13) weeks' period but in no event more than forty- 
eight (48) hours in any one week. 

Sec. 2. No employee engaged in any plant, factory, or mechanical 
work shall be permitted to work in excess of one thousand forty 
(1,040) hours in any six (6) months' period, provided that time and 
one third shall be paid for all time worked in excass of eight (8) 
hours in any one day, or 44 hours in any one week, and provided 
further, that no such employee shall be permitted to woTk in excess 
of ten (10) hours in any one day nor in excess of forty-eight (48) 
hours in any one week. 

Sec. 3. The maximum hours specified in Sections 1 and 2 of 
this Article shall not apply to : 

(a) Emploj^ees in an executive, managerial, supervisory, or tech- 
nical capacity, and their immediate assistants who receive a salary 
of $35.00 per week or more. 

(b) Outside salesmen. 

(c) Employees on emergency maintenance or emergency repair 
work ; nor to employees whose work may be directly affected by such 
emergencies. 

(d) Chauffeurs, engineers, firemen, water tenders, oilers, or main- 
tenance men, who shall not be permitted to work more than forty- 
eight (48) hours in any one week. 

(e) Employees engaged wholly or partially in performing the 
functions of wholesale distribution (excluding, however, those em- 
ployees engaged in manufacturing or production operations) shall 



113 

not be permitted to work in excess of forty -eight (48) hours in any 
one week. 

(f ) No watchman shall be ])ernntte(l to woi-k in excess of fifty-six 
(56) hours in any one week. 

Sec. 4. No employee shall be permitted to work for a total number 
of hours in excess or the number of hours prescribed herein, whether 
he be employed by one or more employers. 

Article IV — Wages and SalapvIes 

Section 1. No employee receiving- a salary shall be paid less than 
$15.00 per week in any city of over 500,000 population, or in the im- 
mediate trade area of such city; nor less than $1-1:.50 per week in 
any city of between 250,000 and 500,000 population, or in the im- 
mediate trade area of such city; nor less than $14.00 per week in 
any other locality. 

Sec. 2. No employee on a wage basis shall be paid less than thirty- 
five cents (350) per hour, except as follows : 

(a) Employees over sixteen (16) and less than twenty-one (21)' 
years of age engaged in doing light work, such as the duties of mes- 
sengers, junior clerks and the like, and beginners or apprentices who 
have had no previous experience or employment in the industry, shall 
be paid not less than twenty-eight cents (28^) per hour. No 
employer shall knowingly employ or continue to employ any person 
as a beginner or apprentice who has worked in this industry for a 
period of ten (10) weeks, whether for one or more employers. 

(b) The minimum rates of compensation for all employees in the 
southern district may be less than those provided in this section by 
not to exceed two and one half cents (2i/4(^) per hour. 

(c) A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a 
wage below the minimum established by this Code if the employer 
obtains from the State authority designated by the United States 
Department of Labor a certificate authorizing his employment at 
guch 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. 3. The number of employees of any member of the industry 
receiving wages as provided under Sections 2 (a) and 2 (c) of this 
Article shall not exceed ten percent (10%) of the total number of 
such member's employees. 

Sec. 4. Female employees performing substantial!}^ the same work 
as male employees shall receive the same rate of pay as male 
employees. 

Sec. 5. This Article establishes a minimum rate of pay which shall 
apply irrespective of whether an employee is compensated on a time 
rate, piece-Avork performance, or other basis. 

Sec. 6. No employer shall permit work of any kind to be performed 
in any home or homes or outside of a factory, workshop, or the like, 
except that for a period of one year from the effective date of this 
Code, low-grade baseballs made with compressed cottonseed or 

37670° 313-186 34 2 



114 

sweepings or compressed felt scraps, and playground balls made 
from scrap felt or other similar cheap waste material may be sewed 
in a home or homes, provided, however, that the compensation there- 
for shall be not less than the rate of pa}' in effect on July 15, 1929, 
plus an increase of twenty percent (20%), and provided, further, 
that the rates of compensation to be paid for such work shall have 
the approval of the Code Authority and be uniform throughout the 
industry. Within ninety (90) days after the approval of this Code, 
the Code Authority shall make or cause to be made a study of the 
practicability of elimination of home work insofar as possible and 
shall report its findings to the Administrator. 

Sec. 7. It is the policy of members of this industry to refrain from 
reducing compentation 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 of such employment may be 
reduced and unless such adjustments have already been made since 
June 16, 1933, 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. 

Article V. — General Labor Provisions 

Section 1. Child Lahor. — No person under sixteen (16) years of 
age shall be employed in the industry. No person under eighteen 
(18) years of age shall be employed at operations or occupations 
which are hazardous in nature or dangerous to health. In any 
State an employer shall be deemed to have complied with this 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. 

Sec. 2. Provisiont< 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 
collectivel}' through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers 
of labor, or their agents, or in self-organization or in other con- 
certed 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 compl}'^ with the maximum hours of 
labor, minimum rates of pay. and other conditions of employment 
approved or prescribed by the President. 

Sec. 3. Red ass if cat ion of Em/plo^yecs. — 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 em- 
ployees at tlie place and during the hours of their employment. 



115 

Sec. 5. State Latvs. — 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 woik. or as to 
safety, health, sanitary, or general working conditions, than are 
imposed by this Code. 

Sec. 6. Posting. — All employers shall post and keep posted com- 
plete copies of the wage and hour and general labor provisions of 
this Code in conspicuous places accessible to employees. 

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

Authority 

Section 1. Organisation and Constitution. — A Code Authority is 
hereby established to cooperate with the Administrator in adminis- 
tration of this Code and shall consist of twelve (12) members, or such 
other member as may be approved from time to time by the Ad- 
ministrator to be chosen by the Industry as hereinafter provided 
through a fair method of selection approved by the Administrator: 

Subsection (a) Two members of the Code Authority to be selected 
by the Athletic Goods Manufacturers Association; one member to 
be selected by the National Association of Golf Club Manufacturers; 
one member to be selected by the Golf Ball Manufacturers Associa- 
tion; one member to be selected by the Tennis Kacket Manufacturers 
Association ; one member to be selected by the Athletic Shoe Manu- 
facturers Association; one member to be selected by the Golf Bag 
Manufacturers Association; one member to be selected by the 
Sporting Goods and Athletic Wear Association; one member to be 
selected by the manufacturers of Tennis Balls; and not more than 
three members to be selected by those members of the industry who 
wish to participate in the activities of the Code Authority, who 
assent to and agree to abide by the provisions of this Code, but who 
are not membeis of any of the above mentioned gi'oups.^ 

Sec. 2. Pending the selection of the Code Authority, as prescribed 
in the foregoing Section, the Administrator shall appoint a Com- 
mittee to act as a temporary Code Authority for a period not to 
exceed sixty (60) days from the effective date of this Code. 

Sec. 3. 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. 4. 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 true copies of its articles of association, 
bylaws, regulations, and any amendments when made thereto, 
together with such other information as to membership, organiza- 
tion and activities as the Administrator may deem necessary to 
effectuate the purposes of the Act. 

Sec. 5. In order that the Code Authority shall at all times be 
truly representatiA^e of the industry and in other respects comply 

^ See paragraph 2 of Order approving this Code. 



116 

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 trulj^ representative, or does not in other 
respects comply with the provisions of tlie Act, he may take such 
action as he may deem necessary under the circumstances. 

Sec. 6. Anj^ member of the industry shall be eligible for member- 
ship in any trade association or organized gi'oup participating in the 
activities of the Code Authority, upon compliance with the provi- 
sions of the bylaws relating to membership, provided that any per- 
son applying for such 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 adminis- 
tration. Such members of the industry who do not choose to become 
members of any trade association or organized group may partici- 
pate in the activities of the Code Authority as herein provided by 
paying to the Code Authority such proportionate part of the cost of 
code development and administration as the Code Authority, subject 
to the Administrator's approval, shall prescribe to be fair and 
equitable. 

Sec. 7. Poivers and Duties. — The Code Authority shall have the 
following duties and powers to the extent permitted by the Act: 

(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 bjdaws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To cooperate with the Administrator in making investigations 
as to the functioning and observance of any provisions of this Code 
at its own instance or upon complaint by any person, and to report 
the same to the Administrator, 

(d) 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. 

(e) To use such trade associations and other agencies as it deems 
13 roper for the carrying out of any of its activities provided for 
herein, provided that nothing herein shall relieve the Code Authority 
of its duties or responsibilities under this Code and that such trade 
associations and agencies shall at all times be subject to and comply 
with the provisions hereof. 

(f) To make recommendations to the Administrator for the 
coordination of the administration of this Code with such other 
Codes, if any, as may be related to this industry, with a view of 
permitting joint action upon matters of common interest. 

(g) To secure from members of the industry who assent to this 
Code and/or participate in the activities of the Code Authority 



117 

such proportionate payment of the reasoiiabh- expense of maintaining 
the Code Authority as may be determined by the Code Authority 
and approved by the Administrator. 

(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 otlier industries and to recounnend to the 
Administrator measures for industrial planning, including stabiliza- 
tion of employment. 

Sec. 8. Any action of the Code Authority or of any agency there- 
of, which the Administrator may deem unfair or improper, or 
contrary to the public interest, or which may be represented to him 
by any interested party, as unfair to any private interest, improper, 
or contrary to the public interest, may be suspended by the Admin- 
istrator for such period of time, not to exceed thirty days, as he 
may deem necessary to afford an opportunity for investigation into 
such action. Further action by the Code Authority or of any agency 
thereof, may be held in abeyance by the Administrator pending his 
final determination of the matter under investigation. 

Article VII — Unfair Trade Practices 

The following practices enumerated in this Article VII shall 
constitute unfair methods of competition for all members of the 
industry and are prohibited. In adition thereto the practices 
listed in Schedules A, B, C, and D attached hereto and are made a 
part of this Code shall apply, respectively, to the following divisions 
of the Industry : 

Schedule A shall apply only to manufacturers who produce and/or 
wholesalers who import balls, implements, and equipment used in 
any or all of the athletic games and sports enumerated below, except 
those used for the building and/or maintenance of the courts, fields, 
grounds, and pools where such games are played. 

(a) Football, basket ball, soccer, rugby football, volley ball, water 
polo, and other athletic games using an inflated ball. 

(b) Baseball, including all the variations thereof, played with a 
hard or soft ball and bat. 

Schedule B shall apply only to manufacturers who produce and/or 
wholesalers who import golf balls and golf clubs. 

Schedule C shall apply only to manufacturers who produce and/or 
wholesalers who import tennis racquets and tennis frames, including 
racquets and frames for the following related games : Court tennis, 
badminton, racquets, squash racquets, and squash tennis. 

Schedule D shall apply only to manufacturers who produce and/or 
wholesalers who import especially constructed athletic shoes as de- 
fined in Article II, Section 2 of this Code. 

Section 1. No member of the industry shall give, permit to be 
given, or offer to give, anything of value for the purpose of influ- 
encing or rewarding the action of any employee, agent, or repre- 
sentative of another in relation to the business of the employer of 
such employee, the principal of such agent or the represented party, 
wnthout the knowledge of such emploj^er, principal, or party. Com- 
mercial bribery provisions shall not be construed to prohibit free 
and general distribution of articles commonly used for advertising 



118 

except so far as such articles are actually used for commercial brib- 
ery as hereinabove defined. 

Sec. 2. No member of the industry shall pay any money or make 
an}^ gifts to athletic organizations, leagues, associations, athletes, 
or persons prominent in any of the various lines of sport to induce 
such athletic organizations, leagues, associations, athletes or persons 
to use, recommend, or adopt as ^ official " the athletic goods or equip- 
ment of such member, and then advertise that such athletic organ- 
izations, leagues, associations, athletes, or persons use, recommend, 
or have adopted as " official " such athletic goods or equipment with- 
out disclosing that such organizations, leagues, associations, athletes, 
or persons were the recipients of money or gifts from such member, 
with the tendency to injuriously affect the business of competitors. 

Sec. 3. No member of the industry shall advertise that the winners 
of athletic competitions, or other individuals prominent in any of 
the various branches of athletics, use or have used the athletic goods 
or equipment of said member where such use is or has been induced 
by gifts or payments of money or is in any way obligatory, unless 
such advertisement shall also show that such winners or other in- 
dividuals were the recipients of gifts or payments from such mem- 
ber or were obligated to use such athletic goods or equipment, where 
the tendency is to injuriously affect the business of competitors. 

Sec. 4. No member of the industry shall give anything of value 
to any person employed in a capacity involving special trust (such 
as instructor, director of athletics, or advisor in any particular line 
of sports) without the knowledge of his employers, upon the condi- 
tion or understanding, expixesed or implied, that its goods be recom- 
mended or used by such person in preference to the athletic goods 
or equipment of a competitor or competitors of such member, with 
the tendency to injuriously affect the business of competitors; pro- 
vided, that nothing in this section shall prevent any member of the 
industry from selling its goods to any such person upon whatever 
terms it sees fit, but without any condition or understanding, ex- 
pressed or implied, as to the recommendations or use of said athletic 
goods or equipment, and provided, further, that nothing in this sec- 
tion shall be construed to alter in any way the provisions of Section 
(1) of this Article. 

Sec. 5. No member of the industry shall use the names of prom- 
inent athletes on athletic goods or equipment used in the particular 
branch of athletics engaged in by said athletes when said athletes did 
not design or do not bona fide endorse or do not themselves bona fide 
use said athletic goods or equipment, and where from the use of said 
means there is a tendency and capacity to induce purchasers of said 
athletic goods or equipment to purchase said athletic goods or equip- 
ment in the belief that the same are bona fide used or endorsed, 
or were designed by said athletes, Avith the tendency to injuriously 
affect the business of competitors, provided that nothing contained 
herein shall be construed to dejirive any person of any right which 
may be enjoyed under any existing law. 

Sec. 6. No member of the industry shall falsely advertise or falsely 
represent that an athlete jorominent in a particular line of sports or 
athletics, designed or uses or endorses certain athletic goods or equip- 
ment, with the tendency and capacity to deceive purchasers or pro- 



119 

spective purchasers and the tendency to injuriously affect the business 
of competitors. 

Sec. 7. No member of the industry shall lease, sell, or contract 
to sell athletic goods or equipment, whether patented or unpatented, 
for use, consumption, or resale within the United States, or fix a 
price charged therefor, or discount from, or rebate upon such price, 
on the condition, agreement, or imderstanding that the lessee or 
purchaser thereof shall not use or deal in the athletic goods or equip- 
ment of a competitor or competitors of the lessor or seller, where the 
effect of such lease, sale, or contract for sale, or such condition, 
agreement, or understanding may be to substantially lessen compe- 
tition or tend to create a monopoly in any line of commerce. 

Sec. 8. No member of the industry shall either directly or indi- 
rectly discriminate in price between different purchasers of commodi- 
ties, where the effect of such discrimination may be to substantially 
lessen competition or tend to create a monopoly in any line of 
commerce; provided, that nothing herein contained shall prevent 
discrimination in price between purchasers of the same class on 
account of differences in the grade, quality, or quantity of the com- 
modity sold, or that makes only due allowances for differences in 
the cost of selling or transportation, or discrimination in price in 
the same or different communities made in good faith to meet compe- 
tition; and provided further, that nothing herein contained shall 
prevent persons engaged in selling the products of this industry 
in commerce from selecting their own customers in bona fide 
transactions and not in restraint of trade. 

Sec. 9. No member of the industry shall use on, or in any way 
in connection with the sale of, any of its athletic goods or equip- 
ment, the name, nickname, or initials of any athlete or person promi- 
nent in any line of sport when a competitor has previously acquired 
of the said athlete or person, and with his approval, the exclusive 
right and good will in and to said name, nickname, or initials for 
use on the same line of goods, and where the effect of the use by 
the said member of the industry of the said name, nickname, or 
initials is to deceive or tend to deceive the purchasing public as to 
the source or make of the said line of goods, and where the tendency 
is to injuriously affect the business of the competitor; provided that 
nothing contained herein shall be construed to deprive any person 
of any right which may be enjoyed under any existing law. 

Sec. 10. No member of the industry shall maliciously induce or 
attempt to induce the breach of existing contracts between com- 
petitors and any athlete or person prominent in any line of sport 
relating to the use of said athletes' or persons' name, nickname, or 
initials, or maliciously interfere with or obstruct the performance 
of any such contractual duties or services with the purpose and effect 
of injuring or hampering such competitors in their businesses. 

Sec. 11. No member of the industry shall mark or brand merchan- 
dise or the wrappings or packages thereof, for the purpose, or with 
the intent, or having the effect of misleading or deceiving the pur- 
chaser or consumer in respect to the quality, size, weight, or grade 
of the articles so marked or branded, or use materials or workman- 
ship different or inferior to that claimed, stated, or implied in any 
mark or brand, label, wrapping, package, or advertisement. 



120 

Sec. 12. No member of the industry shall withhold from or insert 
in an invoice facts which make the invoice a false record wholly or 
in part of the transaction represented on the face thereof and/or pay 
or allow secret rebates, refunds, credits, or unearned discounts, 
whether in the form of money or otherwise. 

Sec. 13. No member of the industry shall publish or circulate un- 
justified or unwarranted threats of legal proceedings which tend to 
harass 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. 

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 Act, from time to 
time to cancel or modify any order, approval, license, rule, or regu- 
Jation 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 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. 

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 — Effective Date 

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

Approved Code No. 254. 
Registry No. 1657-1-04. 



I 



SCHEDULES 

SCHEDULE A 

Additional luifair trade praotioos aiiplicjiblo only to manufacturers who pro- 
duce and/or wholesalers who import balls, imi)l( nients. and equipment used 
In any or all of the athletic gaiiioh' and sports enumerated beldw, except those 
used for the building and/or maintenance of the courts, fields, grounds, and 
pools where such games are played : 

(a) Football, basket ball, soccer, rugby football, volley ball, water polo, and 
all other athletic games using an inflated hall. 

(b) Baseball, including all the variations thereof, played with u hard or soft 
ball and bat. 

Article I 

Section 1. No member of this division of the industry shall stamp the name 
" official " on other than top-grade conventional type of i)lay ground balls, foot- 
balls, soccer balls, or basket balls and volley balls, both inseam and outseam 
styles, and/or special balls provided that they are not sold at a lower price 
than his top-grade conventional type. 

Sec. 2. No member of this division of the Industry shall offer for sale as 
" seconds ", " defective ", or as inferior quality merchandise, any products of 
this division which are in fact not defective or inferior in any material respects 

Sec. 3. No member of this division of the industry shall sell baseballs, play- 
ground balls, footballs, soccer balls, basketballs, or volley balls unless the said 
balls are branded, with a name or other mark of identification. 

Sec. 4, No member of this division of the industry shall guarantee any of 
tlie products of this division except as to their freedom from deftHjts affecting 
the quality, quantity, grade, or construction thereof, or replace for any other 
cause, any such product which has been used, 

Seo. 5, No member of this division of the industry shall give trophies or 
other things of value for the adoption or use of any merchandise by any team, 
club, association, league, or educational institution, excepting only professional 
baseball leagues operating in organized baseball. 

Sec, 6. No member of this division of the industry shall make any donation 
of balls or money to professional baseball leagues in excess of a schedule 
of donations when such schedules shall be agreed upon from time to time by 
this division of the industry and approved by the Administrator. 

Sec, 7. No member of this division of the industry shall stamp the names 
" Official League ", " National League ", or "American League ", on other 
than the manufacturer's finest quality baseballs, made of the best quality 
wool yarn containing at least 95% wool. 

Sec, 8, No member of this division of the industry shall sell merchandise 
on more favorable terms of credit than the following : 

(a) On current orders, 30 days net, 2% ten days or ic/c 10th proximo. 

(b) On advance spring orders shipped after November 1, and spring samples 
whenever sihipped, March 31 dating. 2% if paid April 10th. 

(c) On advance fall orders shipped after June 1st, and fall samples when- 
ever shipped, September 80th dating, 2% if paid October 10th. 

(d) The rate of discount allowed on prepayment of invoices shall not exceed 
6% per annum. 

(e) Past due accounts shall be subject to the legal rate of interest pro- 
vided for by the laws of the State governing the operation of the contract 
of sale. 

(f) Nothing in this Section shall be deemed to apply to credit terms on 
foreign or export sales. 

Sec. 9. No member of this division of the industry shall knowingly imitate 
the trade marks, trade names, recognized trade numbers, slogans, or other 
marks of identification of competitors ; provided that nothing contained herein 
shall be construed to deprive any person of any right which may be enjoyed 
under any existing law. 

Sec. 10. No consignment shall be made either directly or indirectly that has 
for its purpose and/or effect the taking or securing of new business, and/or 
that has for its purpose or effect the taking or keeping business away from a 
competitor. It is the intent of this section, and it shall be so construed, to 
permit a manufacturer by consignment to keep his own customers who lack 
working capital in business, or to salvage an account, 

(121) 



SCHEDULE B 

Additional unfair trade practices applicable only to manufactui'ers who pro- 
duce and/or wholesalers who import golf balls and golf clubs. 

Abticlb I 

Section 1. No member of this division of the industry shall replace the orig- 
inal brand, name, or trade mark on used golf balls which have been remade, 
rebuilt, or renewed, or ofCer for sale used golf balls which have been remade, 
rebuilt, or renewed, without marking on each ball and on the cartons and 
boxes in which they are packed, one of the following w^ords : " Remade ", 
" Rebuilt ", or " Renewed ". 

Sec. 2. No member of this division of the industry shall offer for sale any 
products of this division as " seconds ", " defective ", or as of inferior quality 
merchandise, which is in fact defective or inferior in any material respect. 

Sec. 3. No member of this division of the industry shall sell golf balls unless 
said balls are branded with a name or other mark of identificatiou. 

Sec. 4. No member of this division of the industry shall guarantee any of 
the products of this division, except as to their freedom from defects affecting 
tlie quality, quantity, grade, or construction thereof or replace for any cause 
any .such product which has been used. 

Sec. 5. No member of this division of the industry shall sell merchandise 
on more favorable terms of credit than the following : 

(a) On current orders, 30 days net, 2% ten days or 2% 10th proximo. 

(b) On advance spring orders shipped after November 1st and spring 
samples whenever shipped, March 31st dating, 2% if paid April 10th. 

(c) The rate of discount allowed on prepayment of invoices shall not exceed 
G% per annum. 

(d) Past due accounts shall be subject to the legal rate of interest provided 
for by any existing laws governing the operation of the contract of sale. 

(e) Nothing in tliis Section shall be deemed to apply to credit terms on 
foreign or export sales. 

Sec. 6. No member of this division of the industry shall knowingly imitate 
Ihe trade marks, trade names, recognized trade numl)ers, slogans or other marks 
of identification of competitors ; provided that nothing contained herein shall 
be construed to deprive any person of any right which may be enjoyed under 
any state or Federal law. 

Sec. 7. No consignment shall be made, either directly or indirectly, that 
has for its purpose and/or effect the taking or securing of new business and/or 
that has for its purpose or effect the taking or keeping business away from a 
competitor. It is the intent of this section and, it shall be so construed, to 
permit a manufacturer by consignment to keep his own customers who lack 
working capital in business or to salvage on account. 

Seo. 8. No member of this division of the industry shall make gifts of any 
kind to any golf player, eitlier professional or amateur, nor charge such person 
a lower price for merchandise than the price charged other customers of the 
same class ; provided any manufacturer may employ any golf player at an 
annual salary of not less than $1,500.00, each to play with the balls and/or 
clubs of said manufacturer in tournaments and/or exhibition play, and/or for 
the use of his name as a trade mark on golf clubs and/or golf balls. No deduc- 
tion from said .salary of $1,500.00 per year shall be made for failure to win any 
one or several tournaments, nor shall the said salary of $1,500.00 include any 
part of the prize money won by the said player. 

(122) 



SCHEDULE C 

Additional unfair trade practices applicable only to manufacturers who 
produce and/or wholesalers who import tenni.s rackets and tennis frames, 
including rackets and frames for the followin,ij related games : Court tennis, 
badminton, racquets, squash racquets, squash tennis. 

Article I 

Section 1. No member of this division of the industry shall offer for sale as 
seconds or discontinued models, any rackets or frames which are not bona fide 
seconds or discontinued models. Such bona fide seconds or discontinued models 
shall be indelibly stamped with a steel stamp with the words " second " or 
" discontinued model " respectively. 

Sec. 2. No member of this division of the industry shall guarantee any prod- 
ucts of this division except as to their quality, quantity, grade or construction, 
and freedom from defects. 

Sec. 3. No member of this division of the industry shall sell merchandise on 
more favorable terms of credit than the following : 

(a) On current orders, 30 days net, 2% ten days, or 2% 10th proximo. 

(b) On advance spring orders shipped after November 1st and spring sam- 
ples whenever shipped, March 31st dating, 2% if paid April 10th. 

(c) The rate of discount on prepayment of invoices shall not exceed 6% 
per annum. 

(d) Past due accounts shall be subject to the legal rate of interest pro- 
vided for by the laws of the State governing the operation of the contract 
of sale. 

(e) Nothing in this Section shall be deemed to apply to credit terms on 
foreign or export sales. 

Sec. 4. No consignment shall be made either directly or indirectly, that 
has for its purpose and/or effect the taking or securing of new business and/or 
that has for its purpose or effect the taking or keeping business away from a 
competitor. It is the ihtent of this section, and it shall be so construed, to 
permit a manufacturer by consignment to keep his own customers who lack 
working capital in business or to salvage an account. 

Sec. 5. No member of this division of the industry shall make gifts of any 
kind to any tennis player, court tennis player, badminton player, racquets 
player, squash racquets player, squash tennis player, either professional or 
amateur, or charge such persons a lower price for merchandise than the price 
charged other customers of the same class, except that the first twenty men, 
twelve women, six juniors, four boys, and four girls, rank tennis players as per 
the ranking list of the preceding playing season of the U.S. Lawn Tennis Associ- 
ation, may be given free of charge tennis rackets, tennis racket frames, and re- 
stringing service ; and further provided, any manufacturer may employ any ten- 
nis player or tennis professional at an annual salary of not less than $1,000, each 
to play with the balls and/or tennis rackets of said manufacturer in tourna- 
ments and exhibition play, and/or for the use of his name as a trade mark 
on tennis rackets and/or tennis frames. No deduction from said salary of 
$1,000 per year shall be made for failure to win any one or several tourna- 
ments, nor shall the said salary of $1,000 include any part of the prime money 
won by the said player. 

(123) 



SCHEDULE D 

Additional unfair trade practices applicable only to manufacturers who pro- 
duce and/or wholesalers who import especially constructed athletic shoes as 
defined in Article II, Section 2 of the Code for the Athletic Goods Manu- 
facturing Industry. 

Arte CLE I 

Secttgn 1. No member of this division of the industry shall guarantee mer- 
chandise, except as to freedom fi-om defect, quality, grade or construction, or 
replace for any other cause merchandise which has been used. No replace- 
ment or repairs free of charge shall be made unlessi the merchandise is returned 
to the factory and found defective. 

Sec. 2. No member of this division of the Industry shall give credit for 
the return of samples unless they are returned within thirty days from the 
date of invoice. 

Seo. 3. No member of this division of the Industry shall sell merchandise 
on more favorable terms of credit than the following : 

(a) On current orders, 30 days net, 2'% ten days, or 2% 10th proximo. 

(b) On advance spring orders shipped after November 1, and spring samples 
whenever shipped, March 31st dating, 2% if paid April 10th. 

(c) On advance fall orders shipped after June 1st and fall samples whenever 
shipped, September 30th dating, 2% if paid October 10th. 

(d) The rate of discount allowed on prepayment of invoices not to exceed 
6% per annum. 

(e) Past due accounts shall be subject to the legal rate of interest provided 
for by the laws of the State governing the operation of the contract of sale. 

(f) Nothing in this Section shall be deemed to apply to credit terms on 
foreign or export sales. 

Seo. 4. No member of the industry shall knowingly Imitate the trade marks, 
trade names, recognized trade numbers, slogans, or other marks of ideuification 
of competitors ; provided that nothing contained herein shall be construed to 
deprive any person of any right which may be enjoyed. under any existing law. 

Seo. 5. No consignment shall be made, either directly or indirectly, that has 
for its purpose and/or effect the taking or securing of new business, and/or 
that has for its purpose or effect the taking or keeping business away from a 
competitor. It is the intent of this section, and it shall be so construed, to 
permit a manufacturer by consignment to keep his own customers, who lack 
working capital in business or to salvage an account. 

Seo. 6. No member of this division of the industry shall give trophies or 
other things of value for the adoption or use of any merchandise by any team, 
club, association, league, or educational institution. 

(124) 
O 



Approved Code No. 255 
CODE OF FAIR COMPETITION 

FOR THE 

TABLE OIL CLOTH INDUSTRY 

As Approved on February 2, 1934 



ORDER 



Approving Code of Fair Competition for the Table Oil Cloth 

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 Table Oil Cloth 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 hereby order that said Code of Fair 
Competition be and it is hereby approved. 

Hugh S. Johnson, 
Achninistrator for Industrial Recovery. 
Approval recommended : 
A. D. Whiteside, 

Division Administrator. 
Washington, D.C, 

February 2, 1934. 

37667" 313-189—34 (125) 



REPOKT TO THE PKESIDENT 

The President, 

The WMfe House. 

Sir: 

Introduction 

This is a report of the Hearing on the Code of Fair Competition 
for the Table Oil Cloth Industry in the United States, conducted in 
Washington, D.C., on Tuesday, December 12, 1933. 

In accordance with the customary procedure, every person who 
filed a request for appearance was freely heard in public, and all 
statutory and regTilatory requirements were complied with. 

The Code which is attached was presented by the duly qualified 
and authorized representatives of the Industry, the Table Oil Cloth 
Manufacturers Association, complying with the statutory require- 
ments as representing 100 percent of the total number of producers 
and 100 percent of the volume of the industiy. 

GENERAL CHARACTERISTICS OF THE INDUSTRY 

The term Table Oil Cloth Industry is used to define the manufac- 
ture of light-weight table oil cloth utilized chiefly as table and shelf 
covering but does not include floor covering. 

It was brought out at the Hearing that the six manufacturers in 
this industry represent invested capital of approximately $8,500,000 
while their annual sales average $13,000,000 per year. The total pro- 
duction capacity for this industry in 1933 was 176,772,700 square 
yards of material while the aggregate annual production for that 
year has been estimated at 86,760,000 square yards. 

The number of employees in this industry in 1932 was 1,190 while 
in 1933 employment was raised to 1,378. 

It was further brought out that the manufacturers in this industry 
have been operating under the Labor Provisions of this Code since 
the date of its original submission to the National Recovery Admin- 
istration on August 30, 1933. It is estimated that the adoption of 
such provisions have resulted in an average increase of 10 percent in 
employment throughout the industry. 

RESUME 

The provisions regarding hours in this Code are fair in every 
respect and should impose no hardship on employees. 

The wage rate of thirty-five (35^) cents per hour is higher than 
that appearing in many codes approved to date. 

(IL'6) 



127 

In view of the fact that the Table Oil Clotli Mamil'acturera 
Association is composed of the total number of niamifacturers in the 
industry, this Association acts as the Code Authority for the 
Industry. 

There are no trade practices. 

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

(b) Said Industry normally emj^loys 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 wdth 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 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, 
February 2, 1934. 



CODE OF FAIR COMPETITION FOE THE TABLE OIL 
CLOTH INDUSTRY 

Article I — Piuposes 

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 Table Oil Cloth Industry, and shall be the 
standards of Fair Conijjetition for such industry and shall be binding 
upon every menil>er thereof. 

Akticlk II — Definitions 

The term " Table Oil Cloth Industry " as used herein is defined to 
mean the manufacture and original sale of light-weight table oil 
cloth utilized chiefly as table and shelf covering, but not floor 
covering. 

The term "• employers " shall mean all members of the industry by 
whom employees are compensated or emploj'ecl. 

The term " emjDloyee " as used herein shall include 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 " member of the industry " includes anyone engaged in 
the industry, either as an employer or on his own behalf. 

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

Article III — Hours 

1. No employee shall be permitted to work in excess of forty (40) 
hours per week, except repair shop crews, engineers, electricians, 
firemen, office, sales staff, watchmen, shipping and outside crews, 
cleaners; and except anj' employee engaged in a managerial, super- 
visory, or executive capacity, provided such employee in such mana- 
gerial, supervisory, or executive capacity receives thirty-five dollars 
($^35.00) or more per week. 

2. The maximum hours of labor for office employees shall be an 
average of forty (40) hours a week over each period of one month, 
and shall not exceed forty-eiglit (48) hours in any one week. 

3. Shipping and outside crews, cleaners, watchmen, and firemen 
shall not be employed more than forty -eight (48) hours in any 
one week. 

4. The maximum hours of labor of repair shop crews, engineers, 
and electricians shall be forty-four (44) hours a week, except in case 
of emergenc}^ work. Any such emergency time in any mill shall 
be reported monthlv to the Code Authority provided for in Article 
VI of the Code. ^ 

(128) 



129 
Article IV — Wages 

The minimum wage that shall be paid by emploj^ers in the Table 
Oil Cloth Industry to any of their employees, including office em- 
ployees, shall be at the rate of thirty-five cents (3;")^) per hour, 
or fourteen dollars ($14.00) per week for forty (40) hours of labor. 

(a) Wage Rates Above the Minimum. — The existing amounts by 
which wage rates in the higher-paid classes exceed wage rates in 
the lower-paid classes shall be maintained. 

(b) It is interpreted that the provisions for a minimum wage in 
this Code establish a guaranteed minimum rate of pay per hour of 
employment regardless of whether the employee s compensation 
is otherwise based on a time-rate performance or upon a piecework 
performance. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be emplojed in 
the Table Oil Cloth 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 this provision if he shall have on tile 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 representative 
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 requii-ed 
as a condition of employment to join any company union or to re- 
frain from joining, organizing, or assisting a labor organization of 
his own choosing. 

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

5. Within each State this Code shall not supersede any laws of such 
State imposing more stringent requirements on employers regulat- 
ing the age of employees, wages, hours of work, or health, tire 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 VI — Ad.aiin istration 

1. The Table Oil Cloth Manufacturers' Association is hereby desig- 
nated as a Code Authority to cooperate with the Administrator as 
a planning and fair practice agency for the Table Oil Cloth Industry. 
The Administrator mav designate not more than three additional 
members of the Code Authority, who shall have no vote, and shall 



130 

serve "svitliout expense to the Table Oil Cloth Industry. 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 and the policy of the National Industrial Recovery Act. 

2. With a view to keeping the Administrator informed as to the 
observance or nonobservance of this Code of Fair Competition and 
as to whether or not the Table Oil Cloth Industry is taking appro- 
priate steps to effectuate the declared policy of the National Indus- 
trial Recovery Act, members of the industry shall furnish duly 
certified reports, and in such form as may hereafter be requested 
by the Code Authority subject to the review of the Administrator; 
and in addition thereto shall furnish to such government agencies 
as the Administrator may designate, such reports as he may deem 
necessary for the purposes recited in Section 3 (a) of the Act. 

3. The Code Authority is constituted the agency to collect and 
receive reports, and to compile and organize this information in sat- 
isfactory form to be sent to the Administrator. Such reports shall 
be considered confidential and shall be distributed only in consoli- 
dated form. 

4. The Code Authority is also set up to cooperate with the Ad- 
ministrator in making investigations as to the functioning 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. 

5. The Code Authority is also set up for the purpose of investi- 
gating and informing the Administrator on behalf of the Table Oil 
Cloth Industry as to the importation of competitive articles into the 
United States in substantial quantities or increasing ratio to domes- 
tic 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 Table Oil Cloth Industry, under the provisions of the National 
Industrial Recovery Act, with respect thereto. 

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 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 appro- 
priate modification in the method of selection of the Code Authority. 

7. Any association participating in the activities of the Code Au- 
thority shall keep on file wnth the Administrator full copies of its 
Constitution and By-Laws and shall submit to the Administrator for 
approval any proposed modifications or amendments thereto. 

Article VII — MociricATioN 

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 National Industrial Recovery 
Act, from time to time to cancel or modify any order, approval, 



I 



131 

license, rule, or regulation, issued undei- 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. 

Such of the provisions of this Code as are not required to be in- 
cluded therein by the National Industrial Recovery Act may, with 
the approval of the President, be modified or eliminated as changes 
in circumstances or experience may indicate. It is contemplated that 
from time to time supplementary provisions to this Code or addi- 
tional codes will be submitted for the approval of the President to 
prevent unfair and destructive competitive practices and to effectuate 
the other purposes and policies of Title I of the National Industnal 
Recovery Act consistent with the provisions thereof. 

Article VIII — Partial Invalidity 

If any provision of this Code is declared invalid or unenforceable, 
the remaining provisions thereof shall nevertheless continue in full 
force and effect in the same manner as if they had been separately 
presented for approval and approved by 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 — Effective Date 

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



Approved Code No. 255. 
Registry No. 1635-03. 



o 



Approved Code No. 256 
CODE OF FAIR COMPETITION 

FOR THE 

SCHIFFLI, THE HAND MACHINE EMBROIDERY, 
AND THE EMBROIDERY THREAD AND SCALLOP 
CUTTING INDUSTRIES 

As Approved on February 2, 1934 



ORDER 



Approving Code of Fair Competition for the Schiffli, the Hand 
Machine Embroidery, and the Embroidery Thread and Scallop 
Cutting Industries 

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 Schiffli, the Hand Machine Embroidery, 
and the Embroidery Thread and Scallop Cutting Industries, 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, 
Administrator for Industrial Recovei^. 
Approval Recommended : 
A. D. Whii-eside, 

Division Administrator. 

Washington, D.C, 

February ^, 193 It. 

37068° 313-188 34 (133) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Code for the Schiffli and Hand Machine Embroidery 
Industry relates to the manufacture of embroidery and aetz lace 
on Schiffli machines, and to the embroidery on handkerchiefs and 
so-called " long goods " on hand-operated machines. The industry, 
as defined by the Code, also includes establishments engaged in em- 
broidery thread cutting and scallop cutting for Schiffli and Hand 
Machine Embroidery companies. 

One code for this industry was submitted jointly by the Embroid- 
ery Manufacturers Protective Association, representing approxi- 
mately eighty-five percent (85%) of the Schiffli machines, and by 
the Hand Machine Embroidery Association, Incorporated, repre- 
sentative of approximately sixty percent (60%) of the Hand Ma- 
chine Industry, and the Co-operative Embroidery Thread and Scallop 
Cutters' Association representing ninety percent (90%) of the 
embroidery thread and scallop cutting industry. This proposed code 
of fair competition was presented to the Administrator by the two 
associations on August 22, 1933, was revised and resubmitted, and a 
hearing on the revised code was held on September 11, 1933. The 
Code was further revised in conferences held subsequent to the hear- 
ing, and is herewith recommended for executive approval. 

The Code of Fair Competition for the Schiffli and Hand Machine 
Embroidery Industry may be summarized as follows : 

Article I states the general purpose of the Code. 

Article II defines the industry, together with certain terms used in 
the Code, and indicates the several classifications under various 
divisions of the industry. 

Article III specifies the minimum wages to be paid in each branch 
of the industry. 

Article IV, /Section 1, Hours^ designates the maximum hours of 
work for employees. 

Section £, Home Work, abolishes home work within six (6) months 
of the effective date of the Code. 

Section 3, Sti^etch-out System, empowers the Code Authority with 
the representatives of labor to determine an aj^plicable definition of 
" stretch-out " within three (3) months, to the end of abolishing this 
recognized evil. 

Section 4, Unemployment Insurance, provides for the future pro- 
vision of unemployment insurance to all persons normally employed 
by the industiy in productive operations. 

Section 5, Child Labor, prohibits the employment of any person 
under sixteen (16) years of age. 

Section 6, Rights of Labor, quotes the mandatory provisions of 
Section 7 (a) of the National Industrial Recovery Act. 

(134) 



I 



135 

Section 7, Recl^issi-fication of Employees^ prohibits reclassification 
of employees or their duties for the purpose of defeating either the 
Act or the Code. 

Section 8, Standards for Safety and Health, requires that the Code 
Authority shall submit standards for safety and health to the Ad- 
ministrator within six (6) months after the effective date of the 
Code. ^ 

Section 9, State Laws, specifies that no provision in the Code 
shall supersede any State law imposing more stringent requirements 
on employers, with respect to age of employees, wages, hours of 
work, etc. 

Section 10, Labor Contracts, fixes the limits within which agree- 
ments between emploj'-ers and employees may be made. 

Section 11, Posting, guarantees the accessibility of certain provi- 
sions of the Code to employees. 

Section 12, EmployTnent by Several Employers, limits the num- 
ber of hours of work of an employee engaged by several employers. 

Article V sets up a Code Authority and outlines certain of its 
duties and functions. 

Article VI enumerates trade-practice rules. 

Article VII allows for arbitration in case of differences, com- 
plaints or controversies. 

Article VIII quotes the provisions of Section 10 (b) of the Act in 
respect of amendments or additions to the Code. 

Article IX provides that the Code may not be used to promote 
monopolies, permit unfair trade practices, or discriminate against 
small enterprises. 

Article X advises against excessive price increases. 

Article XI establishes an effective date for the Code. 

NATURE OF THE INDUSTRY 

The Schiffli Embroidery Industry is localized to a large extent in 
New Jersey where about seventy percent (70%) of Schiffli lace and 
embroidery is manufactured. New York is also an important pro- 
ducing area. In the hand-machine section of the industry, New 
York is the leading State and produces over eighty percent (80%) of 
the total output. 

Most of the factories in this industry are small. Nearly forty per- 
cent (40%) of the establishments employ five (5) wage earners or 
less, while seventy percent (70%) are operated with less than twenty- 
one (21) workers. For the year 1929, the largest plant in the 
industry employed less than two hundred fifty (250) workers. 

The activity of the embroidery industry is highly seasonal in 
nature. In many of the shops, owners of the equipment are also 
operators. In addition, home-work operations have long prevailed 
within this industry. While it is difficult to estimate the extent of 
this home work, competent authorities have testified that this prac- 
tice is confined largely to non-machine work. It has presented a 
significant amount of the total production activities of the industry. 

The value of the combined production of Schiffli and hand ma- 
chine embroidery in 1929 was nearly nineteen million dollars ($19,- 
000,000), although by 1931 this value had declined to about sixteen 



136 

million dollars ($16,000,000). The Scliifili industry was responsible 
for about two-thirds (%) of the total value of production of the 
industry in 1931, and employed a large majority of the workers in 
the industry. To engage in the manufacture of Schiffli embroidery 
necessities investment in relatively expensive equipment. One fifteen 
(15) yard Schiffli embroidery machine represents an investment of 
approximately sixteen thousand dollars ($16,000). In the industry 
there are about one thousand one hundred (1,100) Schiffli embroidery 
machines located in about five hundred (500) establishments. The 
plants have become of a smaller scale nature within recent years 
as is evidenced by the fact that about five (5) years ago, about two 
hundred fifty (250) manufacturers operated a total of one thousand 
five hundred (1,500) Schiffli machines. The present units of the 
industry are small, and the competition in the industry has been 
severe. It should be borne in mind that the embroidery industry 
serves as dress trmimings to a large extent and is thus subject to 
the competition that comes from many competing products. Em- 
broidery lace (aetz) likewise must compete directly with Leavers 
lace. The hand machine industry is also small scale in nature, and 
competes principally with shipments of embroideries from foreign 
countries and from Puerto Rico. 

THE INDUSTRIAL BRANCHES INCLUDED IN THIS CODE 

Originally nine (9) codes were presented for this industry by 
various interested groups, despite the fact that it is a small industry 
employmg less than four thousand (4,000) workers in 1929, and 
approximately three thousand three hundred (3,300) workers in 
1931. Of the total employees, nearly three thousand (3,000) were 
employed in the Schiffli section in 1929 and over two thousand seven 
hundred (2,700) in 1931. A successful effort was made to unite these 
various branches of the industry under one code. These branches 
include the manufacture of Schiffli embroidered lace (aetz) and 
Schiffli embroidery, hand-machine embroidery of handkerchiefs, 
hand -machine embroidery of long goods and novelties (sold mainly 
to the cutting-up trades), the design of Schiffli embroidery and a 
number of establishments engaged in embroidery thread and scallop 
cutting. This section of the industry employs but a few hundred 
workers and it was deemed desirable to make provisions for it in a 
general code for the entire industry. 

The combination of these various branches under one code was 
deemed essential because of the relatively small size of each section 
of the industry as well as of the industry as a whole. 

WAGES 

Article III of the Code provides minimum wages for each of the 
various branches of the industry. In the Schiffli branch no less 
than a rate of thirty-seven and a half cents (37i/2c) per hour is to 
be paid to any employee engaged in manual or machine process, while 
other employees are to receive not less than the rate of thirty-five 
cents (35^) per hour. 



137 

In the discussions following the hearing on this code, it was gen- 
erally agreed that some minimum wage provision should be made 
for employees in the Schiffli industry above the rank of unskilled 
workers. Various minimum hourly rates were proposed for an 
occupational classification of employees in the industry. When it 
appeared impossible to secure a meeting of minds on the level of 
these rates, it was agreed that a minimum scale of hourly wages for 
occupations above the least skilled should be set by the Code Author- 
ity upon approval by the Administrator within four (4) weeks after 
the effective date of the Code. The basis of determining these rates 
shall be an accountant's report on the wages paid in 1929, but in 
any case, the minimum scale of wages shall not be less than the 
minimum wages set forth in the code. 

The Schiffli industry employs designers in its own shops and in 
addition has sketches made by designers who operate their own 
studios afid who employ fellow designers. It was found to be im- 
practical to establish rates of wages for studio work, but it was 
agreed that those designers employed within Schiffli factories should 
be paid at the rate of not less than one dollar ($1.00) per hour for 
a forty (40) hour work week. 

Article III establishes, also, a minimum rate of forty cents (40<;i) 
per hour for employees engaged in manual or machine processes in 
the Hand Machine industry, with the exception that a thirty cent 
(300) rate is provided for learners for the first six (6) weeks of their 
training. It is provided that no other employee shall be paid less 
than at tlie rate of thirty-five cents (350) per hour. 

For the Embroidery Thread and Scallop Cutting Industry, a mini- 
mum rate of thirty-five cents (350) per hour is established for em- 
ployees engaged in the manual or machine processes, with the excep- 
tion that a thirty cent (300) rate is provided for learners for the 
first six (6) weeks. 

" Substandards " (limited to ten percent (10%) of total em- 
ployees) may be employed on light work below the minimum wage, 
provided that such employees are paid at least eighty percent (80%) 
of the minimum. 

It is provided that the problem of apprentices in the industries 
shall be studied by the Code Authority and recommendations made, 
within thirty (30) days, to the Administrator, which, upon his ap- 
proval, after due notice of hearing if he deems this necessary, shall 
become binding provisions of this Code. 

HOURS 

On and after the effective date of this Code, all productive em- 
ployees in the industry shall work not in excess of forty (40) hours 
per week and but one shift per week of plant operation shall be per- 
mitted. The hours of work are specified by the agreement and work 
is to be confined to the days from Monday to Friday, inclusive. 

The average full-time hours per week previously operated by this 
industry were probably close to forty-eight (48). In 1929, approxi- 
mately thirty-two percent (32%^ of the workers were employed from 
forty-ori?e (41) to forty-four (44) hours. Twenty-five percent (25%) 
were scheduled to work from forty-five (45) to forty-eight (48) 



138 

hours per week while the weekly hours of thirty-three percent (33%) 
of the workers ranged from forty-nine (49) to fifty-four (54) hours 
per week. It has been estimated that a reduction of hours from 
forty-eight (48) to forty (40) as proposed by the Code will result in 
an increase of twenty percent (20%) in the number of workers em- 
ployed by the industry. The extent of employment will also be in- 
creased, it is anticipated, by the Code provision that home work is 
to be eliminated. There is no means of determining accurately the 
hours of work that have prevailed in home work. In view of the 
fact that under the Code provisions much of the work formerly 
done in the homes will be clone in the factory with a regulation of 
hours of work, it appears to be evident that the forty (40) hour 
week in this industry will result in a significant increase in persons 
employed. 

HOME WORK 

By the terms of Article IV, Section 2, it is provided that within 
three (3) months of the effective date, all home work shall be abol- 
ished. It has previously been stated that the elimination of home 
work in the industry will result in an increase in the numbers of 
workers employed in factory operations. This procedure seems essen- 
tial in order to guarantee that the minimum wage and maximum 
hours provisions will be controlled and regulated. The allowance 
of three (3) months for the elimination of home work is believed to 
be sufficient time for the adjustment of the home workers and to 
allow for employers to obtain additional factory space for the in- 
creased operations that will result from the elimination of home 
work. 

ADMINISTRATION 

A Code Authority is constituted for the industry by the terms of 
Article V. It is provided that the Administrator shall designate 
the members of the Code Authority to represent the industries. 

This arrangement for setting up a Code Authority seems, at first 
glance, to be unusual. However, it was due to a factional disagree- 
ment that occurred after work upon the Code developed into a long 
series of unpleasant incidents. These separated further the factions 
and at one time seriously threatened the production of any Code. 
Many of the difficulties were overcome, but on the question of the 
Code Authority, after a long effort on the part of the Assistant 
Deputy to secure an agreement, it was proposed to the Industry that 
the Administrator be empowered to designate the Code Authority. 
This was agreed upon. 

Article V further designates a number of duties and responsibilities 
for the Code Authority. One of the most important is the specifica- 
tion that a service bureau shall be set up for the purpose of su2:)ervis- 
ing credits in the industry. Testimony brought out at the hearing on 
this Code showed that effective credit checking was most important 
in view of the small size of the manufacturing establishments in the 
industry. As a means of placing the industry on a basis of fair 
competition, the Code Authority is authorized to take such steps as 
it may deem advisable to facilitate and expedite scrutiny of order 
prices and trade j)ractices. 



139 

In the original code that was submitted for this industry, it T\'as 
provided that no manufacturer of Schiffli embroidery should be 
permitted to sell to embroidery jobbers or dealers who had not 
entered contractual relationship with the Embroidery Manufacturers 
Protective Association. It was maintained that this clause was 
necessary in order effectively to minimize credit losses. This clause, 
however, was protested by the Embroidery Merchants Association as 
well as by the Embroidery Manufacturers Protective Alliance. 

In substitution of this clause. Article V, Section 9, subsection (j) 
has been inserted in the Code upon approval of all interested parties. 
This section makes it obligatory on all members of the industry, 
except members of the Embroidery and Scallop Cutting Industry, to 
specify certain factual information w^ith respect to orders on each 
sales contract or order blank. It is believed that the provision of 
this information will act toward the elimination of credit losses and 
unfair trade practices. 

OTHER FEATURES 

1. Uneni'ployment Insurance. — The manufacturers and labor rep- 
resentatives in this industry have recognized the desirability of 
providing an unemployment insurance plan for the industries covered 
by this Code. Article IV, fourth section of the Code, provides that 
the Code Authority shall take steps to set uj) the necessary machinery 
for providing unemployment insurance to all persons normally 
employed in productive operations by the industry. 

2. Child Labor. — Article IV, Section 5, provides that no person 
in the industry shall employ any worker under the age of sixteen 
(16) years, provided, however, that where a State laAV requires a 
higher minimum age for employment, no person below the age 
specified by such a State law shall be employed by any manufacturer 
in this industry. 

3. Design 'piracy. — The copying of designs has constituted a major 
problem for this industry. In order to protect original designs 
and to prevent unintentional copying of designs, the Code Authority 
has been authorized by Article V, Section 9, Subsection (n), to set 
up a Design Registration Service and to adopt such rules and reg- 
ulations as may be necessary to enforce the prevention of design 
piracy. This provision is of the utmost significance to the designers 
in the industry and it is significant that each factor in the industry 
has been zealous in urging the adoption of such a clause. 

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 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 

37668 ° 313-1 S8 34 2 



140 

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 compensation ])ractices, 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 indus- 
trial 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 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 Avithout 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 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 stej^s of the economic process have not 
been de]:)rived of the right to be heard prior to approval of said Code. 

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

Hugh S. Johnson, 

AdndTdstrator, 
Febkuaby 2, 1934. 



CODE OF FAIR COMPETITIOX FOR THE SCHIFFLT. THE 
HAND MACHINE EMBROIDERY. AND THE EMBROID- 
ERY THREAD AND SCALLOP CUTTING INDUSTRIES 

Article I — Purposes 

To effect the policy of Title I of the National Industrial Recovery 
Act. the followint^ provisions are established as a Code of Fair 
Competition for the Schiftii. the Hand Machine Embroidery, and the 
Embroidery Thread and Scallop Cuttinij Industries, and shall be 
the standard of Fair Competition for these industries, and shall be 
binding upon every member thereof. 

Article II — Defixitioxs 

(a) Schiffli Industry as used herein means the manufacture of em- 
broidery and laces on a Schiffli machine. (Schiffli is a Swiss term 
literally meaning '' little boat " and describes the shape of the shut- 
tles of a multiple-needle-and-shuttle embroidery machine.) 

Manufacturers in the Schiffli Embroidery Industry are divided 
into three classifications, as follows : 

1. Those Avho manufacture for and sell mainly to the " cutting- 
up " trades, or to retail establishments. (Known in the trade as 
" Direct Manufacturers.") 

2. Those who manufacture for and sell mainly to embroidery mer- 
chants, jobbers, dealers, and middlemen. 

3. Those who manufacture and sell embroidery made on a sur- 
face of material which is limited in area of design to the dimensions 
of a " frame " attachment set into a Schiffli machine, as distinguished 
from " long goods " which are embroidered across the full length 
of a machine. 

(b) Hand-Machine Industry as used herein includes manufac- 
ture on hand-operated machines which do not require shuttles. 
Manufacturers in the Hand-Machine Embroidery Industry are di- 
vided into two classifications as follows : 

1. Those who embroider handkerchiefs exclusively, and sell ex- 
clusively to the handkerchief manufacturing industry. 

2. Those who embroider '"" long-goods ", " frame-goods ", and nov- 
elties, and sell direct to the cutting-up trades and to embroidery 
merchants, jobbers, dealers, and middlemen. 

(e) " Embroidery Thread and Scallop Cutting Industry " shall 
include establishments engaged in the business of contracting to 
do embroidery thread splitting by machinery and/or by hand, em- 
broidery thread cutting by machinery and/or by hand, scallop cut- 
ting by machinery and/or by hand, lace cutting by machinerj'^ and/or 
by hand, lace making-up by machinery and/or by hand, the making- 
up of embroidered yard goods by machinery and/or by hand, the 

(141) 



142 

cutting-out of embroidery by exclusive hand process, and the straight 
cutting of embroidery by machinery and/or by hand. 

(d) Embroidery means all products which are or which can be 
produced on a Schiffli and/or Hand Machine. It includes Schiffli 
or " Burnt-out " laces, and/or processing thereof. 

(e) " Jobber, Dealer, and/or Middleman " refers to a person 
or firm ordering or purchasing embroidery for resale to the cutting- 
up trades or to retailing establishments, which person or firm is 
not the owner or lessee-operator of a Schiffli and/or Hand Machine. 

(f ) " Member of the Industry " includes anj^one engaged in the 
industries as above defined, either as an employer or on his own 
behalf. 

(g) " Manufacturer " is the owner or lessee-operator of a Schiffli 
or Hand Machine. 

(h) The term "Employee" as used herein includes anyone en- 
gaged in the industries, however compensated, except a member of 
the industries. 

(i) The term "Employer" as used herein means any employer 
engaged in the industries. 

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

Article III — Minimum Wages 

1. (a) No employee engaged in manual or machine processes in 
the Schiffli Industry shall be paid less than at the rate of thirty-seven 
and a half cents (37^^) per hour. No other employee shall be paid 
less than at the rate of thirty-five cents (35^) per hour. 

(b) No emploj^ee engaged in manual or machine processes in the 
Hand Machine Industry shall be paid less than at the rate of forty 
cents (40^) per hour, except learners who shall be paid at the rate 
of thirty cents (30^) per hour for the first six (6) weeks. No other 
employee shall be paid less than at the rate of thirty-five cents (35^^) 
per hour. 

(c) No employee engaged in manual or machine processes in the 
Embroidery Thread and Scallop Cutting Industry shall be paid less 
than at the rate of thirty-five cents (350) per hour, except learners 
who shall not be paid less than at the rate of thirty cents (300) per 
hour for the first six (6) weeks. 

(d) The Code Authority shall, with the approval of the Admin- 
istrator, designate Certified Public Accountants, who shall investi- 
gate and report, within four (4) weeks after the effective date of this 
Code, the wage rates, by occupation, that prevailed in 1929 in the 
Schiffli Industry, the Hand Machine Industry and the Embroidery 
Thread and Scallop Cutting Industry. The minimum scale of wages 
and sectional adjustments thereof for these industries shall not be 
less than the 1929 wage rate as determined above, nor less than the 
minimum wages set forth in this Article. Upon recommendation of 
the Code Authority and approval of the Administrator, after such 
notice and hearing as he may specify, the aforesaid minimum scale 
of wages and sectional adjustments shall become binding upon all 



143 

members of the industries as effective provisions of this Code. Pend- 
ing the approval by the Administrator of the report of the Code 
Authority as above provided, no employee engaged in manual or 
machine processes in the Chicago area of the Schiffli Industry shall 
be paid less than at the rate of thirty-two and a half cents (321/^0) 
per hour. 

(e) Employed designers in the Schiffli Industry shall be paid at 
the rate of not less than one dollar ($1.00) per hour for a forty 
(.40) hour week. 

2. None of the provisions of this Article shall be construed or 
applied in such maner that the minimum wages provided herein 
become maximum wages, and the duties delegated to the Code Au- 
thority shall include a report with respect to the questtion of 
whether the minimum wages provided herein are in fact tending 
to become maximum wages. 

3. A person whose earning capacity is limited because of physical 
or mental handicap may be employed on light work at a wage below 
the minimum established by this Code; provided, that no such ex- 
cepted employee shall be paid less than eighty percent (80%) of the 
minimum wage, and that the total number of such excepted employ- 
ees shall not exceed, when added to the total number of learners, 
more than ten percent (10%) of the total number of employees 
engaged in any plant. 

4. The problem of apprentices in the industries shall be studied 
by the Code Autliority, and recommendations shall be made within 
thirty (30) days to the Administrator, which upon his approval, 
after such notice and hearing as he may specify, shall become 
binding provisions of this Code. 

5. A guaranteed minimum rate of pay is established regardless 
of whether the employee is compensated on the basis of a time rate 
or a piecework or other basis. 

6. Employers shall not reduce wages at present above the minimum 
wages herein provided, notwithstanding that the hours of employ- 
ment are decreased by reason of the operation of this Code, but all 
wages above that shall be equitably readjusted. 

Article IV 

1. Hours. — (a) 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 herein otherwise provided. 
A normal work day shall not exceed eight (8) hours; the hours of 
work shall be from 8 : 00 A.M. to 12 : 00 o'clock noon, and from 
1 : 00 P.M. to 5 : 00 P.M. from Monday to Friday, inclusive, except 
that the Code Authority, subject to the approval of the Admin- 
istrator, may, upon proper showing, allow sectional members of the 
industries to operate at other than the daily standard hours herein 
provided. Neither overtime, nor allowance of extra hours for time 
lost for any reason whatever, shall be permitted. Not more than one 
shift shall be permitted. 

(b) The maximum hours fixed in the foregoing section shall not 
apply to office and supervisory staffs who receive more than thirty- 
five dollars ($35.00) per week, nor to watchmen and outside sales 



144 

forces. Chauffers in the Embroidery Thread and Scallop Cutting 
Industry shall not be permitted to work in excess of forty-five 
(45) hours in any one week or nine (9) hours in any one day. 
Watchmen shall not be permitted to work in excess of fifty-six 
(56) hours in any one week with one day of rest in seven (7). 

(c) Any member of the industries who does the work of a pro- 
ductive employee shall be subject to the provisions of hours of labor 
of this Code. 

2. Home Work. — After six (6) months from the effective elate 
of this Code no member of the industry shall give out work to be 
done in homes. Prior to that date, the Code Authority shall gather 
facts regarding the operation of home work in the industries under 
this Code and shall make recommendations to the Administrator, 
who, after due hearing, shall determine whether the above prohibi- 
tion shall be modified, cancelled or continued. 

3. Stretch-Out /System. — The industries under this Code go on 
record as recognizing the stretch-out system as an evil that must be 
abolished, and to that end the Code Authority with the representa- 
tive of labor shall within three (3) months after the effective date 
of this Code, work out a satisfactory definition of " stretch-out " as 
applicable to the industries under the Code, which upon approval by 
the Administrator shall become a binding provision of the Code. 
Pending this recommendation, no member of the industries shall 
require any employee to tend a greater number of machines than such 
employee or such class of employees customarily tended in such plant 
in the week of July 1, 1933. 

4. VnertiployTnent Insurayice. — The Code Authority shall inves- 
tigate methods for making available unemployment insurance to 
all persons normally employed in production in the industries 
covered by this Code, and make recommendations to the Adminis- 
trator which upon his approval, after such notice and hearing as he 
may specify, shall become a part of this Code. 

5. Child Labor. — No members of the industries covered by this 
Code shall employ any person under the age of sixteen (16) years. 

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

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

7. Reclmsification of Employees. — No employer shall reclassify 
employees or duties of occupations performed for the purpose of 
defeating the provisions of the Act or of this Code. 

8. Standards for Safety a/nd Health. — Every employer shall pro- 
vide for the safety and health of his employees at the place and 



145 

during the hours of their employment. Standard?? for safety and 
health shall be submitted by the Code Authority to the Administrator 
within six (6) months after the effective date of this Code, and 
upon his approval, after such notice and hearing as he may specify, 
shall become a part of this Code. 

9. State Laws. — No provision in this Code shall supersede any 
law within any State which imposes more strin^jjent 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. 

10. Labor Contra/its. — Any agreement between employers and em- 
ployees made in accordance with the National Industrial Recovery 
Act, may fix other wages and hours than those set forth in this Code, 
provided that no such agreement may fix maximum hours in excess 
of those provided in this Code, or minimum wages lower than those 
provided in this Code. 

11. Posting. — All employers shall post in conspicuous places ac- 
cessible to employees, provisions of this Code relating to hours and 
wages, and conditions of employment, 

12. E77iployment hy Several Employers. — No employer shall know- 
ingly permit any employee to work for any time which, when totaled 
with that already performed for another employer or employers in 
the Industries, exceeds the maximum permitted herein. 

Article V — Administration 

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

2. The five or more members of the Code Authority to represent 
the Industries shall be designated by the Administrator, and in 
addition the Administrator may appoint^not more than three (3) 
members, without vote, to represent the Administration. One of 
these members, without vote, may be appointed by the Administrator 
upon recommendation of the Labor Advisory Board to represent 
labor. 

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, 
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. 

4. The Code Authority may appoint its own officers and employees 
and except as herein provided, prescribe, subject to the approval of 
the Administrator, rules, regulations, and bylaws for its procedure 
and the conduct of its business and affairs. 

5. In order that the Code Authority shall at all times be truly 
representative of the Industries 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 li 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 



146 

appropriate modification in the method of selection of the Code 
Authority, or any sub-Code Authority. 

6. Members of the Industries 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 adminis- 
tration. 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 voliune of business and/or such 
other factors as may be deemed equitable. 

7. Nothing contamed 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, exercis- 
ing reasonable diligence in the conduct of his duties, hereunder, be 
liable to anyone for any action or omission to act under the Code, 
except for his own willful misfeasance or nonfeasance. 

8. For the Embroider^'- Thread and Scallop Cutting Industry, 
there shall be elected by the Association a Fair Practice Agency, 
consisting of three representatives of the Cooperative Embroidery 
Thread and Scallop Cutters Association of Union City, New Jersey, 
to cooperate with the Code Authority in administering the provisions 
of this Code applicable to the Embroidery Tread and Scallop Cutting 
Industry. 

9. The Code Authority shall have the following duties and powers 
in addition to those elsewhere provided in this Code and to tlie 
extent permitted by this Act: 

(a^ Review all questions of disputes arising under this Code; 

(b) Insure execution of the provisions of this Code and provide 
for the compliance of the Industries with the provisions of the Act, 
under such rules and regulations as may be prescribed by the 
Administrator ; 

(c) Shall receive complaints of violations of this Code, make 
investigations thereof, provide hearings thereon, adjust such com- 
plaints, and refer unadjusted violations to the Administrator with 
a report and recommendations for appropriate action, under such 
rules and regulations as msLj be prescribed by the Administrator; 

(d) 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) Investigate the importation of competitive articles and of 
machines into the United States on such terms or under such condi- 
tions as to render ineffective or seriously endanger the maintenance 
of the Code, and act as the agency for making complaint in respect 
thereof to the President on behalf of the Industries ; and 

(f ) Secure from members of the Industries, equitable and propor- 
tionate payment of the reasonable expenses of maintaining the Code 
Authority and its activities; 



147 

(g) Cooperate with the Administrator in regulating the use of 
any N.R.A. insignia solely by those members of the Industries who 
have assented to and are complying with this Code; 

(h) Set up a Service Bureau with the necessary machinery, rules, 
regulations, and facilities for properly supervising credits and for 
aiding in prevention of selling below cost; 

(i) Facilitate and expedite the systematic study of orders, prices, 
and practices, and recommend methods calculated to place the In- 
dustries as a whole, or any subdivision thereof, upon a fair competi- 
tive basis; 

(j) Establish a form of sales contract and/or order blank, the use 
of which shall be obligatory, except as may be otherwise determined 
by the Code Authority, on all members of the Industries covered by 
this Code, except members of the Embroidery Thread and Scallop 
Cutting Industry, which form shall provide spaces for the entry of 
the terms and conditions of sale as agreed upon between buyer and 
seller ; 

(k) Select a confidential agency to obtain from all members of the 
industries certified reports of such character and in such form as 
the Code Authority may prescribe. The agency shall be in no way 
engaged in the industries or connected with any member thereof. 
All information received shall be held as secret and confidential be- 
tween the agency and the reporting member. The agency shall 
analyze, consolidate, and digest the reports and shall disclose to the 
Code Authority only the general findings. The findings shall be 
available to all members of the Industries who have cooperated with 
the Code Authority in the administration of this Code, and the re- 
ports shall be available to the Administrator; provided, however, that 
nothing in this paragraph shall be construed to deprive duly author- 
ized representatives of the Code Authority of the right and power 
to investigate complaints of violation under Section 9 (c) of this 
Article. 

(1) Make recommendations concerning the problem of contrac- 
tual relationship between members of the Industries and embroidery 
merchants, jobbers, dealers, and/or middlemen; 

(m) Set up rules and regulations governing the making of returns 
and reports as to production, machine hours, labor hours, and pay- 
roll accounts by members of the Industries covered by this Code; 

(n) Devise and set up a Design Registration Service for the 
Schiffli and/or Hand Machine Embroidery Industries, including 
branches where necessary, and to adopt such rules and regulations, 
with the approval of the Administrator, as may be necessary to pre- 
vent design piracy ; 

(o) Submit to the Administrator from time to time such pro- 
posed amendments to the Code as, in its judgment, will have the 
effect of improving the Code or improving the results secured there- 
under, and any of such proposed amendments, when approved by 
the Administrator, shall have force and effect as provisions of the 
Code. Every proposed amendment shall be so submitted only after 
a canvass of the opinion of the Industries by the Code Authority; 

(p) Make recommendations for the limitation and supervision 
of handicapped persons employed below a minimum wage. 



148 

10. 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. 

11. If the Administrator shall determine that any action of a 
code authority or any agency thereof may be unfair or unjust or con- 
trary to the public interest, the Administrator may require that such 
action be suspended 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 not be effected 
unless the Administrator approves or unless he shall fail to disap- 
prove after 30 days' notice to him of intention to proceed with such 
action in its original or modified form. 

Article VI — Trade Practice Rules 

For all purposes of the Code the acts described in this article 
shall constitute unfair practices. Any member of the Industries 
who shall, directly or indirectly, through any officer, employee, agent, 
or representative, knowingly use, employ, or permit to be emploj^ed, 
any of such unfair practices shall be guilty of a violation of the 
Code. 

Rule 1. Inaccurate Advertising. — No member of the Industries 
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 misrepresents any commodity 
(including its use, trade mark, grade, quality, quantity, origin, size, 
substance, character, nature, finish, material content, or prepara- 
tion), or credit terms, values, policies, services, or the nature or form 
of the business conducted. 

Rule 2. False BilUng. — No member of the Industries shall with- 
hold from or insert in any quotation or invoice any statement that 
makes it inaccurate in any material particular. 

Rule. 3. Inaccurate Labeling. — No member of the Industries 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 4. Inaccurate References to Competitors^ etc. — No member 
of the Industries shall use advertising or other representation which 
refers inaccurately in any material particular to any competitors 
or their commodities, prices, values, credit terms, policies, or services. 

Rule 5. Selling Below Cost. — No member of the Industries shall 
sell or off'er to sell any commodity at a price below his own individ- 
ual 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 formulated by the Code Authority with the 
approval of the Administrator. Distress merchandise, surplus 
stock, seconds, and samples shall be exi^ected from this provision. 
Subject to the approval of the Administrator, the Code Authority 



149 

may adopt rules and regulations governing the disposal of such 
merchandise below cost. 

Rule 6. Threats of Law /Suits. — No member of the Industries shall 
publish or circularize unjustified or unwarranted threats of legal 
proceedings which tend to or have the effect of harassing competitors 
or intimidating their customers. 

Rule 7. Secret Rebates. — No member of the Industries shall se- 
cretly 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, for the purpose of influencing a 
sale, nor shall a member secretlj^ extend to any customer any special 
service or privilege not openly extended to all customers of the same 
class. 

Rule 8. Cotisignmerits. — No member of the Industries shall ship, 
or deliver any Schiffli and/or Hand Machine Embroidery on con- 
signment, except for samples, as defined by the Code Authority. 

Rule 9. Coinmercial Bribery. — No member of the Industries shall 
^ive, 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 f)rincipal of such agent or the 
represented party, without the knowledge of such employer, princi- 
pal, 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 conmaercial 
bribery, as hereinabove defined. 

Rule 10. Interference vdth Anvther^s Contra^'ts. — No member of 
the Industries shall attempt to induce the breach of an existing con- 
tract between a competitor and his customer or source of supply; 
nor shall any such member interfere with or obstruct the perform- 
ance of such contractual duties or services. 

Rule 11. Violence^ Itvtiniidation, or Vrdawfid Coercion. — No mem- 
ber of the Industries shall commit any of the following unfair 
practices : 

(a) Use of violence to person or property, intimidation or unlaw- 
ful coercion, by a member of the Industries against a member of the 
Industries. 

(b) Threat by a member of the Industry to use such violence, 
intimidation, or unlawful coercion. 

(c) Conspiracy among members of the Industries, or among mem- 
bers of the trade and others, to use or to threaten to use such violence, 
intimidation, or unlawful coercion. 

(d) Combining or cooperation by a member of the Industries with 
anyone who is using or threatening to use such violence, intimidation, 
or coercion. 

Rule 12. Discounts. — (a) For Schiffli and Long-Goods Hand Ma- 
chine Embroidery Manufacturers: a discount not exceeding two 
percent (2%) for payment on the tenth day of the month following 
shipment; the twenty-fifth day shall be considered the end of each 
month, and an extra discount of one percent (1%) may be allowed 
for payment made within one week of shipment. 



150 

(b) For Handkerchief Hand Machine Embroidery Manufacturers: 
No discounts whatever; the terms shall be net cash and payment 
shall be made within one week of shipment. 

(c) For the Embroidery Thread and Scallop-Cutting Industry: 
No discounts whatever; the terms shall be net; the month closing 
on the last business day of a month, payable on the tenth day of 
the month following shipment. 

Article VII — Arbitration 

Any and all complaints, differences, controversies, or questions aris- 
ing between members of the Industries should be, if possible, sub- 
mitted to arbitration. In the event that the parties to such a contro- 
versy cannot agree upon such tribunal, the Code Authority shall 
designate the tribunal to whom it shall be submitted. 

Article VIII — Modifioation 

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 sub-section (b) of Section 10 of the National Industrial 
Kecovery Act, from time to time to cancel or modify any order, 
approval, license, rule, or regulation issued under Title 1 of said Act 
ajid 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 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 IX — Monopolies, Eto. 

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 more difficult of consummation if prices of goods and 
services increase as rapidly as wageSj 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 date 
of approval. 



Approved Code No. 256. 
Registry No. 231-1-05. 



o 



Approved Code No. 257 
CODE OF FAIR COMPETITION 

FOR THE 

PRINTING EQUIPMENT INDUSTRY AND TRADE 

As Approved on February 2, 1934 



ORDER 



Approving Code of Fair Competition for the Printing Equipment 

Industry and Trade 

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 Printing Equipment Industry and 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 provisions of Article VII, Sections 2 (c), 4 (e) and 4 (f), 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 staj'ed pending my 
further Order either within a period of sixty 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, 
Administrator for Industrial Recovery. 

Approval recommended : 
W. A. Harriman, 

Division Administrator. 

Washington, D.C, 

Feh7%L<iry £, 1934. 

37671" 313-185 34 (151) 



REPORT TO THE PRESIDENT 

The President, 

Th-e White House. 
Sir: This is a report on the Code of Fair Competition for the 
Printing Equipment Industry and Trade, the hearing having been 
held in Washington on the 3d day of October, 1933, in accordance 
Avith the provisions of the National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employment is limited to 8 hours per day and 40 hours per week, 
with the exception of those employees engaged in emergency, main- 
tenance, or repair work, and the exception that during a period of 
concentrated demand, a maximum of 8 weeks in any 6 consecutive 
months is permitted and the further exception that a tolerance of 
10% is permitted for employees engaged in care and maintenance 
of plant and machinery and service men. Overtime on these excep- 
tions will be paid for at one and one half times the normal rate. 

Minimum wages of 40 cents per hour for males and 30 cents per 
hour for females are established. The Administrator will call a 
hearing not later than 4 months after the effective date of the code 
for the purpose of reconsideration of the minimum rate for females. 

ECONOMIC EFFECT OF THE CODE 

In June 1933, this Industry and Trade comprised approximately 
530 concerns and emploj^ed 6,337 persons. Since the adoption of the 
40-hour week, as provided in this code, employment has increased to 
7,142 persons in September 1933, or an increase of 13%. 

The invested capital of the Industry and Trade is about $100,- 
000.000, and the average annual value of its products over four years 
was $61,000,000. 

Schedule A of this code, for the disposition of used and obsolete 
printing machinery which has been obstructing the market for new 
modern machinery, is an attempt to solve a situation which had a 
depressing effect on all capital goods industry. Under this schedule 
manufacturers may set up a clearing association which will issue 
negotiable certificates of value for this machiner}^ and will also 
market serviceable used machinery' to prevent demoralization of the 
market for new machinery. 

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: 

(152) 



153 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of tlie National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce Avhich 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 unemploj^ment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Industry and Trade normally employs not more than 
50,000 emplo3^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 gi"oup 
is an industrial and trade association truly representative of the 
aforesaid Industry and 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 types of the economic process have not 
been deprived of the right to be heard prior to approval of said Code. 

(g) Due consideration has been given to all protests filed and 
revisions made to conform to all of those which w^ere well founded. 

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

Hugh S. Johnson, 

Administrator, 
February 2, 1934. 



CODE OF FAIR COMPETITION FOR THE PRINTING 
EQUIPMENT INDUSTRY AND 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 Printing Equipment Industry and Trade, 
and shall be the standard of fair competition for this Industry and 
Trade, and shall be binding upon every member thereof. 

Article II — Definitions 

The term '* Printing Equipment Industry and Trade '" or the 
t^.rm " Industr}^ and Trade ", as used herein, includes the building, 
manufacturing, repairing, selling, importing for sale, and the dis- 
tributing of machinery, equipment, and supplies (except as noted 
below) used in the Graphic Arts Industry, and in carton plants, 
or used in printing or lithographing on tin, aluminum, or similar 
metals; and other related branches or subdivisions thereof, as may 
from time to time be included under the provisions of this Code, 
but shall not include any branch or subdivision thereof for which 
a separate code of fair competition has been or may be approved 
by the President. 

The term "' Graphic Arts Industry ", as used herein, is defined 
to mean all ' business enterprises engaged wholly or in part in tho 
art of preparing for representing and/or representing objects 
through mechanical means by the processes of printing and litho- 
graphing on paper, cardboard, or similar materials and/or by addi- 
tional processes, completing the printed or lithographed materials 
into finished products. The supplies intended to be excluded are 
paper and paper products, ink, materials for electrotypers, photo- 
engraver, and similar platemaking supplies; and cloth, cordage, glue, 
and similar bindery supplies ; and printers' rollers. 

The term " Employee ", as used herein, includes any person en- 
gaged in any phase of the Industry and Trade, in any capacity in 
the nature of employee, irrespective of the method of payment of 
his compensation. 

The term " Employer ", as used herein, includes anyone for whose 
benefit such an employee is so engaged. 

The term " Member of the Industry and Trade ", as used herein, 
includes anyone engaged in the Industry and Trade as above de- 
fined, either as employer or on his own behalf. 

The term " Member of the Code ", as used herein, includes any 
Member of the Industry and Trade who shall expressly signify 
assent to this Code. 

(154) 



155 

The term " Person ", as used herein, shall include, but without 
limitation, natural persons, partnerships, associations, trusts, trustees 
in bankruptcy', receivers and corporations. 

The term '" Effective Date ", as used herein, means, and this Code 
shall become effective on, the fifteenth (15) day after its approval 
by the President of the United States. 

The term "Administration ", as used herein, means the National 
Recover}' Administration. 

The term ''Administrator ", as used herein, means the Adminis- 
trator for Industrial Recovery. 

The term "Act ", as used herein, shall mean Title I of the National 
Industrial Recovery Act. 

The term "Association ", as used herein, means the National 
Printinf^ Equipment Association, Inc. 

Article III — Hours 

1. (a) On and after the effective date of this Code, employees in 
the Industry and Trade, except as hereinafter provided, shall not be 
emploj'ed in excess of forty (40) hours per "week; nor more than 
six (6) days per week, nor more than eight (8) hours in any one (1) 
day, provided, however, that during any period in which a concen- 
trated demand upon any division of any plant in the Industry and 
Trade shall place an unusual and temporary burden upon its facili- 
ties, emploj'Ces of such division may be permitted to work not more 
than forty-eight (48) hours per week, provided further, however, 
that this exception shall not apply in more than eight (8) weeks 
of any six (6) consecutive calendar months' period. There shall be 
a tolerance of not to exceed ten (10) percent of the above limitations 
for employees engaged in the care and maintenance of plant and 
machinery, delivery service men, stock, order, reviewing and receiv- 
ing clerks and shipping crews, with payment of overtime at the rate 
of time and one half for such tolerance, provided, however, that 
where in any case an employee works in excess of eight (8) hours 
per day, or more than forty (40) hours in any one (1) week, time 
and one half shall be paid for the excess hours worked. The max- 
imum hours fixed in this paragraph (a) shall not apply to any em- 
ployee on emergency maintenance or emergency repair work involv- 
ing breakdowns or protection of life or property, but in any such 
special case at least one and one half times his normal rate shall be 
paid for hours worked in excess of the maximum hours herein 
provided. 

(b) The limitations as to hours of labor shall not apply to execu- 
tives, factory, and office supervisory employees (not including worl^- 
ing foremen), and technical engineers, commercial outside salesmen, 
and field-service men who receive more than thirty-five ($35.00) dol- 
lars per week, and watchmen, provided that watchmen si i a 11 not be 
employed more than fifty-six (56) hours in any one (1) week. 

Article IV — Wages 

1. (a) No male factory employee shall be paid less tlian i:t the rate 
of fort}^ (40) cents per hour and no female factory employee shall be 



156 

paid less than at the rate of thirty (30) cents per hour, except as 
follows : 

(b) Whenever males and females perform substantially the same 
duties under substantially the same conditions, this Code shall assure 
equal pay for equal work and equal opportunity for equal ability 
regardless of sex. 

(c) No reduction shall be made in the rates higher than the mini- 
mum rates provided for in the preceding paragraph (a) of Section 
1 of this Article, to compensate an employer for any rearrangements 
he may be required to make to comply with the minimum rates for 
the groups specified in the preceding paragraph (a) of Section 1 
of this Article. To the extent practicable the diiferentials now exist- 
ing between unskilled, semiskilled, and skilled labor shall be main- 
tained or safeguarded, according to the conditions existing in the 
various localities, where Members of the Industry and Trade con- 
duct their business. 

(d) No accounting or other employee not covered by the preceding 
provisions of this Section 1 of this Article shall be paid less than at 
the rate of fifteen ($15.00) dollars per week, provided, however, that 
office girls, office boj's, and messengers may be paid not less than 
eight}? (80) percent of such minimum wages, provided that the total 
number of such employees shall not exceed in any calendar month 
five (5) percent of the total number of all employees of said em- 
ployer; provided, however, any employer employing forty (40) em- 
ployees or less in his place of business or any employer employing 
no more than fortj? (40) employees in any branch office, sales office, 
or warehouse nvAj have two (2) such employees in each such place 
of business, branch office, sales office, or warehouse. 

(e) Nothing in this Article IV shall apply to, or affect any em- 
ployee apprenticed to any emploj^er by an indenture made in pur- 
suance of the laws of any State of the United States, or by a writ- 
ten contract under an}? apprentice system established and maintained 
by any employer, but all existing and future apprentice contracts 
shall be filed with the Code Authority. The term " apprentice " 
means an employee, usually a minor, who agree to serve an em- 
ployer for a certain stated period of time at predetermined wages 
for the period in order to learn the trade. 

(f) A hearing shall be called by the Administrator not later than 
four (4) months after the effective date for the purpose of recon- 
sideration of the minimum rates for females provided in Section 
1 (a) of this Article IV. 

(2) This Article establishes a minimum rate of pay which shall 
apply, irrespective of whether an employee is actually compensated 
on a time rate, piecework, or other basis. 

(3) No emplovee shall be classified in one of the foregoing ex- 
cepted classes (Articles III and IV) unless he performs functions 
identical with those performed bv emplovees thus classified on June 
16th, 1933. 

(4) No person under sixteen (16) years of age shall be employed 
in the Industry and Trade, nor anyone under eighteen (18) years 
of age at operations or occupations hazardous in nature or detri- 
mental to health. The Code Authority sliall submit to the Adminis- 
trator before March 1, 1934, a list of such occupations. In any 



157 

State an employer shall be deemed to have com])lied with this pro- 
vision 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. 

Akticle V — CoDK Administration 

To further effectuate the policies of the Act, a Code Authority is 
hereby set up to cooperate with the Administrator in the adminis- 
tration of this Code. 

Organization and Constitution of Code Authority: 

1. The Code Authority shall consist of the Executive Committee 
of the Association (as that Committee is from time to time con- 
stituted, provided, however, that unless some other provision be 
approved by the Administrator, the Executive Committee of the 
Association shall be composed of not less than five (5) nor more 
than seven (7) members). To the Code Authority, as so constituted 
and established, there may be added such additional member or 
members not to exceed two (2) as the Administrator may at any 
time decide to be properly proportional (according to such infor- 
mation as he may require nonmcmbers of the Association to furnish) 
and to be selected by and to represent Members of the Industry and 
Trade who are not members of the Association, wdiich member or 
members shall be selected by some fair and satisfactory method to 
be devised by the Code Authority and approved by the Adminis- 
trator. The Administrator, in his discretion, may appoint not more 
than three (3) members, without vote, as his representatives or 
as representatives of such groups or interests as he may specify. 

2. All Members of the Industry and Trade participating in or 
sharing the benefits of the activities of the Code Authority shall 
bear a proportionate share of the costs of any amendments to this 
Code and of the expenses of the administration of the Code, which 
proportion shall be based upon the number of employees of each 
Member of the Industry and Trade, or upon such other fair and 
equitable basis as the Code Authority may specify, subject to review 
by the Administrator, and such funds shall be collected and ad- 
ministered by and through the machinery of the Association, as the 
agency of the Code Authority. 

3. Each trade or industrial association or corporation directly or 
indirectW participating in the selection or activities of the Code 
Authority shall: (1) Impose no inequitable restrictions on member- 
ship, and (2) submit to the Administrator true copies of its articles 
of association, bylaws, regulations, and any amendments when made 
thereto, together w^ith such other information as to membership, 
organization, and activities as the Administrator may deem necessary 
to effectuate the purjioses of the Act. 

4. In order that the Code Authority shall at all times be truly 
re^jresentative of the Industry and Trade and in other respects com- 
ply 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 w4th the provisions of the Act, may require 

37671° 313-185 34 2 



158 

an appropriate modification in the method of selection of the Code 
Authorit}'. 

5. If the Administrator shall determine that any action of the 
Code xVnthorit}" or any ao;enc3^ 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 oi)portunity 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 — Duties and Powers 

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

1. It shall be empowered to obtain from Members of the Industry 
and Trade and to submit to the Administrator such reports in re- 
spect to wages, hours of labor, number of emploj^es, and other 
conditions of employment, and in respect to production, capacity, 
prices, costs and stocks, as the Code Authority may specify or as the 
Administrator may require; and in addition to the information 
thus required to be submitted to the Code Authority, there shall be 
furnished to governmental agencies such statistical information as 
the Administrator may deem necessary for the purposes recited in 
Section 3 (a) of the Act. 

All statistical data or information furnished by any Member of 
the Industry and Trade in accordance with the foregoing provi- 
sions shall be collected and kept in a confidential manner and the 
reports of the individual Members of the Industry and Trade so 
collected shall not be divulged to any other Member of the Industiy 
and Trade or to anyone else not entitled thereto, except insofar as 
such disclosure may be necessary for effective administration and 
enforcement of the provisions of this Code. 

2. It shall be empowered to insure the execution of the provisions 
of this Code and provide, in cooperation with the Administrator, 
for the compliance of the Members of the Industrj' and Trade with 
the provisions of the Code and of the Act. 

3. To adopt bylaws and rules and regulations for its procedure 
in the administration of this Code, and to use such trade associa- 
tions and other agencies, and to delegate to them such of its powers 
and duties hereunder, as it may deem necessary for the effective 
accomplishment of its activities provided for herein, provided that 
nothing herein shall relieve the Code Authority of its duties or 
responsibilities and that such trade associations and agencies shall 
at all times be subject to and comply with the provisions hereof. 

4. All Members of the Industry and Trade shall keep such ade- 
quate accounting and other records as will enable them to prepare 
and furnish all data and information which may be required of 
them pursuant to the foregoing provisions. 

5. The Code Authority shall have among its duties, but without 
limitation on the foregoing, that of investigating complaints from 
jNIembers of the Industry and Trade respecting prices or practices 
that are demoralizing or destructive to the Industry and Trade, or 



159 

that toncl to create a monopoly; and if snch ])riees or praotiees are 
fount! to exist, the Code Authority sliall I'eport the faets to the 
proper authority. 

Article VII — Unfair Competitive Practices 

Unfair competition of any Member of the Industry and Trade 
shall be deemed to comprise any of the following:; acts ov ])ractices: 

1. Any and all noncompliance with this Code. 

2. Wilfully selling or offering to sell any machinery and/or 
equipment and/or supplies at a price or upon terms or conditions 
that will result in the customer paying to the seller for the goods 
received, less than their ascertainable cost, to be determined accord- 
ing to sound principles (a guide to wdiich appears in Exhibit B 
attached hereto) except that a Member of the Industry and Trade 
may sell below his own cost to meet the price of a lower-cost com- 
petitor. Anj^ changes, hereafter made, in Exhibit B shall be subject 
to the approval of the Administrator. This clause shall not apply 
to bona fide discontinued lines. 

(a) Every manufacturer, dealer and im]:)orter shall establish his 
own list prices for his machinery and equipment and the list prices 
for regularly listed machinery and equipment shall be filed with the 
Association as the agency for the Code Authority not later than 
fifteen (15) days after the effective date of this Code and they shall 
become effective on the date filed. The list prices so filed shall 
remain in effect and no deviation may be made from them, until 
changes are made as provided in Section (c) following. It shall be 
considered an unfair trade practice for any Member of the Industry 
and Trade to sell any such machinery and/or equipment at prices 
below those filed by him with the Association, and then in effect. 

(b) The Association may furnish a copy of any price list so filed 
with it to any manufacturer, dealer, or importer within the Industry 
and Trade who makes written application therefor and who manu- 
factures or deals in machinery and/or equipment similar to that 
covered by the price list applied for, and the Association shall hold 
all such price lists so filed Avith it available at all times for inspection 
by any Member of the Industry and Trade and by any purchaser or 
prospective purchaser. 

(c) In order to effect changes in the prices filed as provided in 
(a) above, the manufacturer, dealer and importer shall file notice of 
change, including a schedule of new prices, with the Association at 
its head office, and the new price shall become effective five (5) days 
after filing.^ 

3. (a) Making any trade-in allowance for used or second-hand 
machinery or equipment accepted in trade as part payment for new 
machinery or equipment in excess of the value of such used or 
second-hand machinery or equipment, such value to be determined 
pursuant to methods of value-determination or rules and regulations 
therefor, to be formulated by the Code Authoritj^, or if it so 
determines, by the Executive Committee of the Association as the 
agency of the Code Authority, and to be approved by the Admin- 
istrator; provided that, pending such approval by the Administrator 

^ See paragraph 2 of Order approving this Code. 



160 

on in the event of subsequent Avithdrawals or suspensions of such 
approval, each Member of the Industry and Trade may accept in 
trade used or second-hand machinery or equipment at such vahies 
as such Member may determine from time to time. 

(b) No used or second-hand machinery or equipment so accepted 
in trade shall be disposed of (unless it is scrapped) for less than the 
amount allowed therefor and determined pursuant to the foregoing 
provisions of this Section plus all costs of handling and recondition- 
ing, provided, that should there be such a decline in the general 
market prices for machinery or equipment, subsequent to six (6) 
months after the effective date, as would make the operation of this 
paragraph (b) of this Section inequitable or unjust, the Adminis- 
trator may, upon application of the Code Authority or of any directly 
affected Member of the Industry and Trade, after such notice and 
hearing as the Administrator may prescribe, grant such suspension 
of, or make such exception to, the provisions of this paragraph (b) 
as in his judgment justice requires. 

(c) ^lembers of the Industry and Trade shall furnish to the Code 
Authority, at such times and in such foi-m as it may require, such 
sworn reports as may be necessar}^ to ascertain the compliance by 
such ]Members with the provisions of this Section 3. 

(d) None of the provisions of this Section 3 shall apph' to roll-fed 
presses which print from curved stereotype plates and which are 
generally used for printing the black and white sections of daily 
newspapers. 

4. Terms of Sale. — -Selling machinery and/or equipment: 

(a) On terms of less than twenty-l^ve (25) percent of the list 
prices in cash and liquidation of the residual indebtedness in sub- 
stantially equal consecutive monthly payments, not to exceed twenty- 
four (24) in number; the first deferred payment shall mature within 
one (1) month from the date on which the machinery and/or equip- 
ment is ready for operation or use and each one of the said payments 
shall be represented by purchase-money notes or other form of 
security, bearing interest at the rate of not less than six (6) percent 
per annum, when permitted by law. and when not, at the legal rate 
of interest. 

(b) Except that in the case of an already established business with 
satisfactory credit standing, a manufacturer, dealer, or importer 
may, within his own discretion extend terms of not less than fifteen 
(15) percent in cash of the list prices and liquidation of the residual 
indebtedness in substantially equal consecutive monthly payments, 
not to exceed thirty-six (36) in number; the first deferred payment 
shall mature within one (1) month from the date on which the 
machinery and/or equipment is ready for operation or use and each 
one of the said payments shall be represented by purchase-money 
notes or other form of security, bearing interest at the rate of not 
less than six (6) percent per annum, when permitted by law, and 
when not, at the legal rate of interest. 

(c) In transactions involving trade-in allowance for used machin- 
erj' and/or equipriient, the percentage of cash payments outlined in 
(a) and (b) above shall be calculated on tlie list prices after de- 
duetintr the trade-in allovs'ance. 



161 

(d) To avoid unsatisfactory and unsound practice.^, in cases 
where credit is extended for supj^lies of a consumable nature, repair 
parts, and service for machinery and equipment, settlement sliall 
be due not later than the fifteenth (15th) day of the month following 
shipment. Such accounts not paid within sixty (GO) days from the 
date of shipment should be subje(;ted to an interest charijje at the rate 
of at least six (G) percent per annum when permitted by law, and 
when not, at the legal rate of interest, and said interest should be 
computed on each account from the time the account becomes past 
due; if not paid within ninety (90) days from date of shipment, 
further extension of credit to such delinquent shall be forfeited 
within the discretion of the manufacturers, dealers, and importers. 

(e) Kates and terms of discounts for prompt payment may be 
established by any manufacturer, dealer, or importer, and, if 
presently established, schedules thereof, shall be filed not later than 
fifteen (15) days after the effective date of this Code, and they shall 
become effective on the date filed with the Association as the agency 
for the Code Authority. Any such rates and terms thereafter 
established by any manufacturer, dealer or importer shall be filed in 
like manner with the Association and shall become effective not later 
than five (5) days after such filing. Such rates and terms of dis- 
counts shall not be exceeded by the Member of the Industry and 
Trade Avho files them prior to the filing by him of revised schedules 
with the head office of the Association as provided in paragraph 
(f) of this article. Upon written application b}^ any manufacturer, 
dealer, or importer, within the Industry and Trade, the Association 
may furnish to such applicants a copy of such discount schecUdes, 
and the Association shall hold all such discount schedules so filed 
Avith it available at all times for inspection bj^ any Member of the 
Industry and Trade and by any purchaser or prospective purchaser.^ 

(f ) In order to aft'ect changes in the rates and terms of discounts 
filed as provided in (e) above, the manufacturer, dealer, or importer 
shall file notice of change, including a schedule of new discount rates, 
with the Association, at its head office, and the new rates shall become 
effective five (5) days after filing.^ 

5. Any false or misleading advertising, guarantee, or claim con- 
cerning a product. 

6. Any malicious statements in defamation of a competitor's prod- 
uct, personnel, credit, or financial responsibility. 

7. Compelling the purchase of a group of products as a considera- 
tion of purchase of one or more products. 

8. Selling rebuilt, reconditioned, overhauled, or used products as 
and for, new. 

9. Fictitious bidding for the purpose of deceiving competitors or 
purchasers, or any attempt — through connivance — to have all bids 
rejected to the end that a more advantageous position may be secured 
in new bidding. 

10. No Member of the Industry and Trade shall sell a machine 
or parts therefor, copied or duplicated by such Member of the In- 
dustry and Trade from a machine or parts therefor, made by an 

' See paragraph 2 of Oiclei- approving this Code. 



162 

established manufacturer of printing; machinery, at a selling price 
under the seller's ascertainable cost. 

11. Using concealed subsidiaries or agents, ostensibly independent, 
to secure competitive advantage. 

12. Lavish entertainment of customers or prospective customers, 
their employees, or others acting for them. 

13. Enticing away employees of competitors with a view of ham- 
pering or embarrassing competitors in the conduct of their business. 
Nothing in this paragraph will prevent any emploj^ee from offering 
his services to a competitor or prevent any employer from employing 
an employee of another Member of the Industry and Trade when 
the initiative of such change of employment is taken by the employee. 

14. Procuring the business or trade secrets of competitors by es- 
pionage or by bribing their employees or others, or by similar means. 

15. Threats to the trade and others of suits for patent infringe- 
ment arising from the sale of alleged infringing products of com- 
petitors, such threats not being made in good faith but for the 
purpose of intimidating the trade and hampering competition. 

16. Obliterating, removing, damaging, or destroying, or altering, 
or tampering in any manner with trade names or trade marks, or 
serial numbers of products with the intent of destroying the identity 
of origin of manufacture and misrepresenting such products; or the 
imitation of trade marks, trade names, slogans, or other marks of 
identification of competitors. 

17. False cJaims by a dealer in domestic products of being an im- 
porter, or by a dealer of being a manufacturer, or by a manufacturer 
of some product of being also the producer of the raw material en- 
tering into the manufacture of said product. 

18. Securing in any unfair manner customer's or prospective cus- 
tomer's signature to a contract through representation that it is 
merely an order on approval or otherwise. 

19. Malicioush' inducing or attempting to induce the breach of an 
existing contract between competitors and their customers, or inter- 
fering with or obstructing the performance of any such contract or 
contractual duties or services with the purpose and effect of hamper- 
ing, injuring, or embarrassing competitors in their business. 

20. Directly or indirectly tampering with or misadjusting a com- 
petitor's products in order to discredit them wath a customer. 

21. For the purpose of hampering or eliminating competition : 

(a) The granting of, or agreement to grant, any secret or unearned 
allowance, rebate, refund, commission, or discount, whether in the 
form of money, by cancellation of notes or accounts without payment, 
or otherwise, or extending to certain purchasers special services, 
privileges, or concessions not extended to all purchasers of same class. 

(b) Permitting purchasers to retain without charge machines 
and/or equipment or any part thereof for which an allowance has 
been made. 

(c) Furnishing of material or labor or incurring other expense 
without adequate and proper charge. 

(d) Furnishing, without charge, inspection, erection, adjustment, 
or other service for which a charge should ordinarily be made; or 
furnishing such services, etc., at less than an adequate and proper 
charge. 



ig:j 

(c) Allowing preferential discouiits or nllowino- discounts outside 
of the discount period. 

(f) Absorbing- frei<2;ht or othei- (ransporiation or other charges 
l)roperly payable by the purchaser. 

(g) Agreeing to give or giving to a new buyer the benefits of pay- 
ments made or other credits established by the original buyer for 
products not yet delivered. 

(h) Giving credits through allov»ances for advertising where ad- 
vertising of value justifying the allowance is not received. 

(i) Selling machines or equipment or any part thereof for cus- 
tomer's account and then accepting, by assignment and without re- 
course, the deferred part of the sales price as a credit in another 
transaction. 

(j) Selling new products as demonstration, exhibition, rebuilt, 
reconditioned, overhauled, or used machinery and/or equipment at 
less than the current regular list price of nevv' products of like speci- 
fications and quality. 

(k) Making allowances for used machinery or equipment which, 
when acquired by the customer or prospective customer, was '"• used " 
and wliich has been in his possession for less than six (G) months, 
or furnishing a customer or prospective customer with old machines 
and equipment or assisting a customer or prospective customer to 
obtain such machines or equipment, for trading purposes. 

(1) No Member of the Industry and 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 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. 

(m) Subsidizing public officials, or employees, or customer's em- 
ployees or prospective customer's employees or their relatives, 
through employing or offering to employ them, or in an}^ other 
manner. 

(n) Using any method whatsoever to create the false impression 
in the minds of customers or prospective customers or others repre- 
senting or acting for them, that they are being offered opportunity 
to purchase uncler unusually favorable conditions, in a manner to 
hamper or eliminate competition. 

22. Placing in a customer's or prospective customer's plant any 
machine or attachment on trial or under conditions tantamount to 
trial, except that in the case of any customer or prospective cus- 
tomer who has not previously purchased or tried any machine or 
attachment of the same make and type, it shall be permissible for 
the seller to enter into a contract of sale for a single machine or 
attachment, the terms of which contract may permit its recision by 
the customer if the machine or attachment shall fail to operate 
and/or produce according to the guarantee of the seller within 
ninety (90) days from the date of installation; provided, however, 
that it shall not be construed unfair trade practice to install newly 



164 

developed models of machines or attachments in a customer's or 
prospective cnstonier's plant for the purpose of testing their opera- 
tion under piactical working conditions. 

23. Tiie usurping of any design (or drawing of a design) for 
printing iyi>e faces or ornaments, originated by a competitor, either 
by the cop3dng of such design in ita original form or after it has 
been converted into a matrix or other means of reproduction, pro- 
vided that this section shall not become effective until standards have 
been established by the Members of the Industry and Trade con- 
cerned and approved by the Administrator for the determination 
of violations of the standards. Such standards to be effective must 
be filed with the Code Authority not later than ninety (90) days 
?fter the effective date. 

The application of this Section 23 shall be limited to the manu- 
facturers of foundry-cast type and of type-casting and type-setting 
machinery and/or matrices therefor. 

Article VIII— Surplus Machines 

The Association may organize and incorporate a clearing associ- 
ation to cope Avith the problem of used surplus machines and equip- 
ment in accordance with a plan outlined in Exhibit A hereof. When 
such corporation is organized, it shall be under the administration of 
the Association as the agency of the Code Authority, and its member- 
ship shall be open to all who are subject to this Code. Within each 
State this Code shall not supersede any laws of such State with 
reference to the provisions of this Article VIII, including, also, 
any provisions of or procedure under the voluntary outlined plan 
described in Exhibit A. 

Article IX — General 

1. 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. 

2. No employee and no one seeking emploj-ment 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. 

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. 

4. Within each State, Members of the Industry and Trade shall 
comply with any laws of such State imposing more stringent require- 
ments, regulating the age of employees, wages, hours of work, or 
health, fire or general M'orking conditions, than under this Code. 

5. Any wholly owned or controlled enterprise engaged in the In- 
dustry and Trade shall, for the purpose of this Code and its adminis- 
tration, be considered as a part of the Member of the Industry and 
Trade by whom it is so owned or controlled. 



165 

6. The provisions of this Code concerning sales, trading allow- 
ances and sales terras, shall not apply to direct export sales or ship- 
ments of any product, or to sales or shipments of any product 
destined ultimately for export, or to sales or shipments of parts 
used in tlie manufacture of products for export. 

7. Ea(;li employer shall post in conspicuous places the full labor 
and AA^age provisions of this Code. 

Article X — Cancelation and A]\rEXD:siENT 

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

Such of the provisions of this Code as are not required to be in- 
cluded therein by the Act, may be modified or eliminated as changes 
in circumstances or experience may indicate. It is contemplated 
that from time to time supplementary j^rovisions to this Code or 
additional Codes will be submitted for the approval of the Adminis- 
trator t'o prevent unfair competition in price and other unfair and 
destructive competitive practices and to effectuate the other purposes 
and policies of Title 1 of the Act consistent with the provisions 
hereof. 

Upon approval of any such modifications, supplementary pro- 
visions, or additional codes by the Administrator, after such notice 
and hearing as he may prescribe, the same shall become effective as 
and with the effect of provisions hereof. Any such modifications, 
supplementary provisions, or additional codes may be submitted 
by the Code Authority. 

Approved Code No. 257. 
Registry No. 599-18. 



EXHIBITS 

Exhibit A of Articolb VIII 

OUTLINE OF A PLAN SUBMITTED BY THE INDUSTRY AND TRADE 
TO DEAL WITH THE SURPLUS USED PRINTING EQUIPMENT PROBLEM 

INTRODUCTION 

The major poi'tion of the available surplus used printing machinery and 
equipment rests in the hands of printers and publishers and other principals 
engaged in the Graphic Arts Industry. In most cases, they are the outright 
owners of it. For the most part, such used machinery is offered for sale not 
through dealers but through other and various unorganized mediums. The lack 
of a central organized outlet for such used machinery unfavorably affects the 
entire Industry and Trade in many ways. 

OBJECT AND INTENT 

As an aid to the Graphic Arts Industry to provide through an authenticated 
source for the disposition of all kinds of used machinery at fair and justifiable 
valuations, by acting as a negotiator between owners of such used machinery 
and prospective purchasers through authorized dealers and otherwise, it is 
proposed that there shall be organized a clearing corporation to effect a more 
satisfactory situation in the common interest. 

It is not the intent of this plan to interfere with the right of owners to 
sell or deal with used surplus machinery with whomsoever they may choose, 
nor is it the intent to prevent dealers in used machinery from purchasing 
sui*plus used machinery in any manner they may see fit, and trade in it, or to 
require any manufacturer, dealer, or importer to participate in or be subject 
to this plan except by his voluntary action or assent. The success of the plan 
depends upon voluntary cooperative action on the part of the owners of such 
used surphis equipment. If it achieves the desired results it will aid the 
entire Industry and Trade — consumer and producer — -to stabilize employment, 
increase wages, and enlarge purchasing power. 

DEFINITIONS 

" Corporation."- — National Printing Equipment Clearing Association. 

" Industry." — Graphic Arts Industry. 

" Used Machinery." — Surplus used printing machinery and equipmejit of a 
capital asset nature. 

" New Machinery." — New printing equipment and machinery of a capital asset 
nature. 

SUGGESTED PLAN AND FUNCTIONS 

Name of Organization — National Printing Equipment Clearing Association. 

Capitalization. — Based on cash assets. Charter under New York or other 
State Laws. 

Sto'-k Subscription. — To be open to all who are under this Code and who 
voluntarily participate in the plan. Stock shall be nonassessable. 

Registrar of Stock. — All stock issued shall be countersigned by a duly quali- 
fied trust company to be selected as Registrar. 

Stock Negotiability. — Stock shall have limited negotiability. Stock to be 
sold by a member shall be offered first to the corporation, second to the share- 
holders, and if purchase fails by either of these two (2) offerings, then the 
stock may be offered to the public. 

Management and Staff. — Directors, Executive Committee, President, Vice- 
President, Secretary, and Treasurer. Tlie Board shall set up a proper working 
organization. 

(166) 



167 

Headquarters. — Maintained at satisfactory location separate from that of any 
shareholder. 

Selling Orsauization. — Sales of used machinery listed with the corporation 
and capable of satisfactory economical use in production shall be effected by 
it only througli authorized dealers who are members of the National Printing 
Equipment Association, Inc. 

Advertising. — Cost of printed matter and advertising shall be borne by the 
corporation unless otherwise arranged. 

Condition. — Condition and completeness of used machinery shall be certi- 
fied by owners on appropriate forms. 

Appraisal. -^On request and at the expense of the owner or purchaser as 
agreed, corporation will arrange for appraisal of used machinery, with due 
regard to the coiTJoration's valuations, as provided for herein, and to the 
operative condition, age, and modernism of design. 

Storage. — Used machinery capable of resale. Pending sale and/or other 
disposition and in the interest of economy, owners should retain custody of 
equipment, and in operative condition if possible. 

Inspection. — Shall be at the expense of owner or purchaser, as agreed. Pur- 
chaser should inspect used machinery, capable of resale, at the time of buying 
and if found acceptable, so acknowledge, in writing. 

Repairs and New Parts — Exi^ense of any such to be borne by owner or 
purchaser, as agreed. 

Delivery — All expense of whatever character incurred in the preparation 
for shipment and all shipping and delivery charges shall be borne by owner 
or purchaser, as agreed. 

Erection — Cost shall be borne by owner or purchaser, as agreed. 

Title — Owner shall give Bill of Sale to purchaser with guarantee as to 
clearness of title or as to lien or encumbrance of any nature whatsoever. 

Sales Price — May be fixed by owners of used machinery capable of resale. 

Tei-ms — All cash, is possible. 

Cash Discount — Rate shall be fixed by owners. 

Deferred Payments — Owners may fix the " Terms Price " and period of 
credit extension where sales are effected on time-payment plan ; corix) ration 
to advise as to any legal limitationa 

Contract and Note.s — Corporation will have prepared for account of owner, 
on request, at his expense, which will be nominal. Advisable for corix»ration 
to so act, considering varying legal requirements of different states. 

Interest Rate — Six (6) percent per annum, subject to conditions of state laws. 

Landlord's Lien — Where state statutes give prior lien to landlords of premises 
for unpaid rental, corporation will endeavor to obtain for owner customary 
waivers of such lien. 

Insurance — Maintained at expense of purchaser pending completion of pay- 
ments. Corporation shall furnish list of acceptable companies, and, where 
existent, its interest to be noted, and corporation to follow up securing pre- 
mium receipts, renewal policies, and direct adjustment of any losses. 

Preservation of Lien — Where state statutes require recording of filing of con- 
tracts or mortgages taken back to secure deferred payments and renewals 
thereof, corporation will on request arrange for compliance with statutory 
requirements for owner, at his expense, which is nominal. 

Collections — Unless otherwise ari-anged, will be made by corporation — on 
proper assignment of notes and contract; all expenses (which are nominal) 
in connection with assignment and collections to be borne by owner. If 
owner is in need of cash, corporation may, on request, endeavor to arrange 
for the discounting of the notes at best obtainable rates. 

Remittances — Remittances to owner, as and when received from purchasers 
and in same kinds of money in which payment is made. 

Listings — Shall be promptly referred to authorized dealers. 

Priority of Sales — Identical used machinery shall be offered for sale in 
order of listing so far as it may prove to be possible. 

Options — Used machinery capable of resale shall be exclusively listed with 
corporation for six (6) months' period. 

Interim Sales — If during this six (6) months' period, opportunity is afforded 
owner to effect sale through a source other than the corporation, owner shall 
convey full particulars to corporation prior to making any commitment, thereby 
avoiding nusunderstanding as to expense incurred or otherwise. 



168 

Owner — Identity shall remain undisclosed pending receipt of an inquiry. 
Listing shall be identified by corporation's record number. 

Compensation— For the purpose of providing for administrative, clerical, 
advertising, and routine expense and, in the absence of or in addition to a 
fixed commission selling charge or precentage, corporation shall be free to 
add to the sale price fixed by owner, a reasonable chai-ge to cover such 
expenses. Corporation's fee and charges shall come, if possible, out of cash 
payment or, if latter not sufficient to cover, out of cash payment and first 
notes paid. For satisfactory services rendered, dealers will receive their 
compensation out of equitable charges made by the corporation for services 
rendered. 

Keservations— Pending completion of payments on used machinery sold, 
the right shall be reserved to owners to withdraw from the corporation any 
contract and notes, etc., lodged with it, simultaneously accounting to corpora- 
tion for its interest, and expenses, if any. 

Mauufacturers^Shall furnish, on request, to corporation any missing data 
available, or history of used machinery listed with corporation for sale or 
other disposition. 

Straitened Circumstances — Every effort shall be made to obtain the sale 
and/or other control of used machinery coming upon the market as the result 
of defunct or bankrupt concerns or consolidations of plants. 

Broad Basis of Valuation — Practically all new macliinery is equipped with 
certain perishable equipment which, in its first use, becomes immediately 
second-hand and of no market value to manufacturers. To meet this condi- 
tion and to establish a fair value for surplus used machinery, the Board of 
Directors of the National Printing Equipment Association, Inc., shall be 
authorized to establish rates of valuation therefor. This Board may take 
cognizance of any method or rules and regulations for determining trade-in 
allowances provided for in Article VII, Section 3, of the Code for the Printing 
Equipment Industry and Trade. 

Certificates of Value — Where an owner desires to arrange for the immediate 
disposition of his suiiplus used machinery, corporation may issue, at the owner's 
request and subject to inspection as hereinbefore provided, a Certificate of 
Value based on the valuations provided for herein, in full settlement for said 
surplus used machinery, the disposition of which will then rest with the cor- 
poration. No such certificates, however, shall be issued for used special-pur- 
pose machineiy, hereby defined to be machinery built to order from specially 
prepared drawings and manufactured from specially built jigs, fixtures, tools, 
and other specially designed manufacturing equipment necessary in the manu- 
facture of such machinery, unless through a dealer the corporation has obtained 
in advance a bona fide order on a cash basis for such machinei-y at a satis- 
factory price ; provided, however, that in such event Certificate of Value shall 
not be issued for an amount in excess of its value based on the valuations 
provided for herein. Where a dealer in used machinery desires to sell used 
machinery to the corporation, the corporation may issue therefor, at the 
dealer's request and subject to inspection as hereinbefore provided. Certificates 
of Value based on the valuations provided for herein in full settlement for 
such machinery, the disposition of which will then rest with the corporation. 
The coiTDoration shall accept Certificates of Value from dealers in connection 
with its sale to dealers of used machinery coming into its absolute possession, 
but not in excess of ten percent (10%) of the price at which such machinery is 
sold to dealers by the corporation. 

Liquidation of Certificates of Value — Certificates of Value shall be honored 
by all manufacturers, dealers and/or importers of machinei*y voluntarily par- 
ticipating in this plan, but only in connection with the purchase of new ma- 
chinery in transactions where there are no trade-ins and then in an amount not 
in excess of ten percent (10%) of the list price of new machinery purchased by 
the holders of the Certificate. Where an afoi'esaid dealer or importer honors 
a Certificate of Value in connection with the sale of new machinery and/or 
equipment, the manufacturer of such machinery and/or equipment shall reim- 
burse the dealer or importer who represents him, for the full value of the 
Certificates taken in trade on the sale of new machinery and/or equipment sold 
of that manufacturer's make ; except that in the case of sales made by dealers 
or importers under terms of contracts betweini them and manufacturers, entered 
into prior to the effective date of this Code, the manufacturer shall arrange with 
the dealer or importer, who sells his goods, for equitable terms and conditions 
upon which the dealer or importer shall be reimbursed. 



169 

Certificatos Unaooeptable Except for Mac'hiu(M-y — No Certiricate of Value shall 
bo accepted in payment for sale of supplies or equipment of a conwuraable 
uatuie; nor shall such Certificates be accepted in settlement of accounts or 
notes receivable or other indebtedness; nor shall Certiti(;ates of Value be 
ac(.'eptcd as part of a cash payment in deferred payment transactions. 

Negotiability and Disposition of Certificates of Value — Except manufacturers, 
including their representatives and their direct dealers, and Importers, any 
liolders of certificates will be at liberty to sell them to others who may be in 
the market therefor. Field representatives of manufacturer.s, dealers, and 
importers, knowing who is in the market for new machinery, will be in a 
jiosition to assist these holders to find an outlet for their certificates through 
such printers or publishers as may be contemplating the purchase of new 
machiner.v. The corporation will from time to time advise the trade of any 
certificates reported to it as available for resale, also, the manufacturers 
will receive notices at least weekly from the corporation of certificates issued. 
In turn, they will keep their field representatives informed. Holders of cer- 
tificates will undoubtedly experience but little difficulty in finding a ready 
market for them. 

aiaturity of Certificates of Value — Certificates of Value shall cease to have 
any value after a period of five years from the original date of issue and shall 
after said date of expiration be surrendered to the corporation for cancellation. 

Kegistration of Certificates of Value — Certificates of Value shall be void 
unless signed by two separate officers of the corporation and countersigned 
by a responsible trust company to be selected as Registrar. 

Surrender or Reduction of Certificates of Value by Manufacturers — Manu- 
facturers and their dealers and/or importers direct or through the mauu- 
factuers honoring the Certificates of Value shall immediately following receipt 
of settlement for said new machinery, forward the Certificates of Value to 
the corporation for cancellation with a complete statement of the transaction in 
connection with which the certificates were taken. If an amount eciual to ten 
percent (10%) of the list price of new machinery will not entirely exhaust 
a certificate the purchaser will turn the certificate over to the manufacturer, 
dealer, or importer who will send it to the corporation to have the necessaiT 
amount endorsed as a debit thereon, following which the certificate will be 
returned to the purchaser to be held for future use. 

Outstanding Certificates of Value — At least weekly the corporation shall 
send to Members of the Industry and Trade participating in this plan notices 
of the issnance of certificates and shall at montlily intervals furnish to such 
parties a complete list of outstinding certificates showing their current value. 

Disposition of Products — Immediately uiwu the surrender of used machinery 
to the corporation under the proposed certificate plan, the corporation will 
arrange for the resale of used machinery capable of satisfactory economical 
use in production through authorized dealers and will thoroughly destroy 
all used machinery coming under its control which in its judgment has ceased 
to be an economical factor in production. 

Notice to Manufacturers — Manufacturers shall be duly notified of the dis- 
position of all used machinery coming under control of the corporation. 

Manufacturers' Record of Ecpupment^ — Each manufacturer shall furnish to 
the coiporation, on forms to be prepared and readily adaptable to his busi- 
ness, a record of all printing machinery manufactured since the year 1913 
showing the fiscal or calendar year in which such machinery was manufac- 
tured, model, price, style, serial number, and other descriptive information 
identifying the age of such machinery ; and shall, thereafter, continue to fur- 
nish such information at yearly intervals. Such information will serve as a 
guide to the corporation in determining the amount of Certificates of Value to 
be outstanding at any one time. It will also assist in the fixing of rates of 
valuation of used machinery according to age and modernism of design, and 
it will further enable the corporation to determine the disposition of such used 
machinery as becomes the sole property of the corporation. 

Purchasers of Used Machinery Through a Source Other than the Corpora- 
tion—The corporation will cooperate with the industry in supplying the fullest 
information regarding any used machinery c;ffered to the industry through any 
source other than the corporation. Prospective purchasers would do well, in 
all cases, to indicate their intention of purchasing such machinery so that they 
may have before them a cfimplete history thereof. This should prove of valu- 
able assistance in aiding them to reach a satisfactory decision. 



170 

Dealers' Direct Sales and Purchases — Dealers should report to the coi'pora- 
tion, on appropriate forms, all used machinery purchased by them or lodged 
with them for sale, and the disposition of such machinery. The object of this 
is merely to keep the corporation informed as to the state of the used machineiT 
market and its location. It will also aid the corporation in referring listings 
to dealers, and, in addition, enable the corporation to advise with dealers as to 
inquiries received by it from time to time from prospective purchasers of used 
machinery. 



Exhibit B of Skctton 2, Article VII 
PRINCIPLES FOR DETERMINING COSTS 

It is not the intention to develop or even to suggest a uniform system of 
cost accounting for the industry as a whole. Tliere is too much variety in the 
character of the several businesses involved to make such a uniform system 
practicable. It is rather the aim to make clear wlaat the elements of cost are 
and to outline the general principles upon which they should be assembled 
into unit costs, leaving it to each individual member of the industry to formu- 
labe his own accounting system in such form as is most suitable and convenient 
for the needs of his business ; the only stipulation being that the system shall 
be so framed as to bring out the data necessary to comply with the principles 
here laid down. 

There are several kinds of goods for wliich costs will need to be ascertained : 

(a) Standard or universal purpose machinery and equipment, which ig 
manufactured on a repetitive basis and may be built for stock. 

(b) Special purpose machinery and equipment built to order, from specially 
prepared drawings and manufactured from specially built jigs, tools, and other 
specially designed manufacturing equipment necessary for the production of 
such machines. 

(c) Machinery and equipment dealt in but not manufactured by the con- 
cern handling it. 

(d) Supplies as distinct from machinery and equipment. 

The elements entering into costs divide roughly into two groups, viz: Direct 
and Indirect, the former being items which can be identified as applicable to a 
specific unit of goods or product and the latter, those which cannot be so 
Identified. 

In building up unit costs the differentiation between direct costs and indirect 
costs will vary somewhat as between the four types of goods enumerated above, 
but. there need be and should be no variation in the principles involved, which 
are, that each type should carry every element of direct costs applicable to 
it and also a fair proportion of the indirect (or general) ccsts which cannot be 
identified against a specific unit of goods or product, such as indirect nmnu- 
facturing costs; amortization of expense of research and developing and pro- 
tecting products; costs of delivery, installation and service (where involved 
in the term of sale and price quoted) ; administrative and general expenses; 
selling expenses ; taxes, etc. 

In the allocation of indirect costs to unit costs there are various methods 
which may be used any of which might be suitable for a particular case. It is 
not intended here to stipulate the use of any particular method but only to 
stipulate that whatever method of allocation is used must be an equitable 
method and in accordance with recognized scnmd cost-accounting practice. 

As a general principle, it is recognized that the fair allocation of indirect 
costs to unit costs necessitates the selection as a base, of a period of sufScient 
length Iro be representative and during which volume has been normal ; other- 
wise misleading cost figures will be produced which might result in the compu- 
tation of a selling price that would render the marketing of the goods 
impossible. 

Similarly, in placing on the market new models of machinery, even of the 
standard or universal purpose type, the all-inclusive cost of the first few batches 
of machines might easily be shown to be higher than a fair selling price, unlesa 
reason is used in determining a fair number of units over which the initial 
costs shall be spi'ead. 

Further, in determining the cost of machinery, repossessed because of default 
of the buyer, it must be considered permissible to write down, where necessary, 
the amount for which the article was repossessed, to a fair inventory value of 
it, having regard to: (1) The cost of a new article of similar model and size, 

(171) 



172 

(2) The costs of reconditioniug and rehandling, (3) The then current selling 
price of the repossessed article, and (4) Any special condition surrounding 
the transaction. 

Below is given a summary of the elements usually entering into cost. 
Naturally it is to be understood that if in any particular business or as to any 
particular unit of goods, some one or more of the elements named are not 
present, such element or elements should be disregarded. 

(1) Costs of Manufacture or of Repairing or Reconditioning — Direct costs 
comprise all expenditures for materials, labor, and other items which can be 
identified as applicable to a specific unit of product. 

Indirect costs of manufacture (sometimes called factory burden or factory 
overhead) comprise all expenditures in connection with production which 
cannot be identified as applicable to any specific unit of product ; such as super- 
vision ; elevator service ; janitor service ; and other general labor ; stock keep- 
ing, time keeping and planning and routing work; engineering; packing and 
shipping ; perishable tools and other general factory supplies ; inspection, pat- 
tern expense ; power, light, and heat ; factory communication ; repairs, main- 
tenance, and protection of factory properties and equipment ; rent and/or de- 
preciation at adequate rates of factory properties including machinery and 
equipment, and taxes and insurance on such factory properties and on inven- 
tories ; workmen's compensation and group insurance ; costs of welfare and 
safety services, etc. 

(2) Expense of Research and Developing and Protecting Products — These 
comprise the cost of professional and all other work and expense involved in 
(a) improving present products, (b) developing new products, and (c) protect- 
ing products by patents, trade marks, or otherwise. These should be amortized 
over a fair period. 

(3) Costs of Delivery, Installation, and Service — Some of these will only 
arise in cases where goods are sold " delivered " or " delivered and installed " 
at or in customer's plant. They may include freight on goods shipped ; cartage 
and other delivei*y costs at destination ; wages and expenses of service men 
engaged on installation and demonstration of machinery or equipment ; the 
cost of rough labor engaged locally to assist said service men ; etc. 

(4) Administrative and General Expense — This classification includes salaries 
and/or other compensation of officers and clerical staffs except those engaged 
in the manufacturing, installation, and selling departments ; legal expenses ; 
losses on repossessions and bad debts ; and other expenses applicable to the 
business as a whole rather than to any particular dejiartment or classification. 

(5) Selling Exi^ense — This includes all salaries, commissions, and other com- 
pensation of salesmen or selling agents and their traveling expenses ; salaries 
of general employees at branch sales offices and all rentals, taxes, and expenses 
applicable to such branch offices ; salaries and wages of employees engaged at 
head office in selling work and all expenses incurred at head office applicable 
to sales, advertising, and publicity, etc. Selling expenses do not include 
salaries of installation and service men, as these fall within group 2. 

(6) Taxes — These include Federal and State franchise, capital stock, and 
corporation taxes ; and all other taxes except those applicable to factory 
properties and inventories and sales offices. 

o 



Approved Code No. 258 
CODE OF FAIR COMPETITION 

FOR THE 

CAST-IRON BOILER AND CAST-IRON RADIATOR 

INDUSTRY 

As Approved on February 3, 1934 



ORDER 



Approving Code of Fair Competition for the Cast-Iron Boiler 
AND Cast-Iron Radiator 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 Cast-Iron Boiler and Cast-iron Radiator 
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 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, that Section 3 
of Article VII shall be stricken from the Code. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
W. A. Harriman, 

D iv isio n A dininis t rat or. 

Washington, D.C, 

Felruary S, 1934. 

38144° 376-% 34 (I73) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Cast-Iron Boiler and Cast-Iron Radiator Industry as revised after 
a public hearing conducted in Washington, D.C., on October 24, 
1933, in accordance with the provisions of the National Industrial 
Recovery Act. 

PR0^^SI0Ns as to wages and hours 

All, except office employees, shall be paid a minimum rate of forty 
cents per hour in the North and thirty cents per hour in the South. 
Learners and apprentices shall be paid not less than eighty percent 
of the above minimum but shall not exceed in number five percent 
of the total. Office employees shall be paid a minimum wage rang- 
ing from fourteen to fifteen dollars a week, depending upon the 
population of the locality in which they work. Office boys and girls 
shall be paid not less than eighty percent of these rates and shall 
not exceed in number five percent of an employer's total number 
of office employees. 

Handicapped workers may be employed at wages below the mini- 
nmm but the number of persons so employed shall not exceed five 
percent of the employer's total number of employees. 

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 number of working hours for 
any week and eight hours for any day except during any twelve 
weeks in a year forty-eight hours m one week shall be permissible. 
Those engaged in an executive, managerial, or supervisory capacity 
who regularly receive thirty-five dollars or more per week are ex- 
cepted from "this provision. Employees engaged solely at mainte- 
nance and repair work, shipping crews, firemen, engineers, and 
electricians may work nine hours a day or forty-four hours a week. 
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 six months, nor more than 
forty-eight hours in any one week. 

Ail employees, except office employees, shall be paid at the rate of 
time and one half for hours in excess of the nornfal daily or weekly 
maximum provided in the Code. 

(174) 



I 



175 



ECONOMIC EFFECTS OF THE CODE 



The demand for cast-iron boilers comes from the residential build- 
ing industry while the demand for cast-iron radiators comes from 
the building industry in general. The average production of boil- 
ers and radiators for the first eight months of 1933 was respectively 
thirty-two percent and twenty-three percent of the averages for the 
peak year of 1927. 

The Research and Planning Division reports conclusions to the 
effect that the industry is unstable, has a strong seasonal movement 
and varies considerably in its employment requirements. 

The average number of employees engaged in the industry in 1928 
was 19,450 and in June 30, 1933, 8,161. This Code will not, therefore, 
effect the reabsorption of all former employees but will increase the 
number of employees over that of September 1, 1933, by twelve 
percent and there will be an average wage increase of approximately 
thirty-three and a third percent. 

The Code will eliminate competition between the members on the 
basis of wage rates and will give the industry a chance through 
cooperative effort to eliminate many detrimental practices that have 
heretofore existed. 

riNDINGS 

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 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 
employees ; 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 afore- 
said Industry; and that said association imposes no inequitable 
restrictions on admission to membership therein. 



176 

(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 dministrator. 
February 3, 1934. 



CODE OF FAIR COMPETITION FOR THE CAST-IRON 
BOILER AND CAST-IRON RADIATOR INDUSTRY 

Article I 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following jDrovisions are submitted as a Code of 
Fair Competition for the Cast-iron Boiler and Cast-Iron Radiator 
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 

(a) "National Industrial Recovery Act" means the National In- 
dustrial Recovery Act approved by the President on June 16, 1933. 

(b) "Act" means National Industrial Recovery Act. 

(c) " President " means the President of the United States of 
America. 

(d) "Administrator " means the duly appointed representative of 
the President to administer Title I of the National Industrial 
Recovery Act. 

(e) " Institute " means The Institute of Boiler and Radiator 
Manufacturers. 

(f ) " Secretary " means the Secretary of The Institute of Boiler 
and Radiator Manufacturers. 

(g) " The Industry " means and includes the business of manufac- 
turing and selling by members, as herein below defined, of Cast 
Iron Boilers and/or Cast Iron Radiators and/or Cast Iron Hot 
Water Supply Boilers, in the United States and Alaska. 

(h) "Member of The Industry" or "Member" means a manu- 
facturer of Cast Iron Boilers and/or Cast Iron Radiators and/or 
Cast Iron Hot Water Supply Boilers. 

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

(j) The term "Employee" means any person engaged in any 
phase of the Industry in any capacity in the nature of emploj^ee, 
irrespective of the method of payment of his compensation. 

(k) The term " Employer " means anyone by whom an employee 
is compensated or employed. 

(1) " Code Authority " means the Committee described in Article 
VI. hereinafter. 

(m) " Effective Date " means the seventh day after this Code shall 
have been approved by the President. 

Article III — Hours 

Section 1. Except as hereinafter otherwise provided, no employee 
shall be employed in excess of forty (40) hours in any one week, or 

(177) 



178 

eight (8) hours in any twenty-four (24) hour period, except that 
during any twelve (12) weeks in a twelve (12) months' period 
employees may be employed not more than forty-eight (48) hours 
during any one (1) week, but such limitations shall not apply to: 

(a) Those engaged in an executive, managerial, or supervisory 
capacity who regularly receive thirty-five (35) dollars or more per 
week ; 

(b) Outside salesmen; 

(c) Employees engaged solely at maintenance and repair work, 
shipping crews, firemen, engineers, and electricians, 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 twelve (12) weeks in a twelve (12) months' period; 

(d) Watchmen, who may be employed not more than fifty-six 
(56) hours in any one week, except watchmen in closed plants to 
whom this limitation shall not appl3^ 

Sec. 2. No office employee shall be employed in excess of an aver- 
age of forty (40) hours per week over each period of six (6) months, 
nor more than forty-eight (48) hours in any one week; provided that 
those engaged in an executive, managerial, or supervisory capacity 
who regularly receive thirty-five (35) dollars or more per week shall 
not be subject to the limitations of this section. 

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. 

Article IV — Wages 

Section 1. On and after the effective date the minimum wage 
which shall be paid by employers in the Industry shall be at the 
following rates: 

(a) Except as provided in paragraph (d) of this Section 1, in all 
States of the United States, except Tennessee, North Carolina, South 
Carolina, Georgia, Alabama, Florida, Mississippi, and Louisiana, 
the minimum rate of pay shall not be less than forty (40) cents 
per hour. 

(b) In the States excepted in the above paragraph, the minimum 
rate of pay may be not to exceed ten (10) cents per hour less than 
that prescribed for other States. 

(c) The minimum rate of pay for learners and apprentices shall 
be not less than eight (80) percent of the minimum wage provided 
herein, and the total number of such learners and apprentices shall 
not exceed in any calendar month five (5) percent of the total num- 
ber of factory employees of any employer; provided, however, that 
no one shall be employed in the capacity of learner who is known 
to the employer to have been employed within the industry for one 
year, whether by one or more employers, 

(d) The minimum wage that shall be paid by any employer to 
office employees shall not be less than the following weekly rates: 

(1) In cities having 500,000 population or over, at the rate of 
$15.00 per week. 



179 

(2) In cities havings 250,000 population or over, and less than 
600,000 population, at the rate of $14.50 per week. 

(3) In cities or towns having less than 250,000 population, at the 
rate of $14.00 per week. 

(4) Office boys and office girls shall be exempted from the pro- 
visions of this paragraph (d) provided that they shall be paid at 
the rate of not less than eighty (80) percent of the above minimum 
wages for office employees, and provided that they shall not exceed 
in number more than five (5) percent of the total number of office 
employees of an employer, but may be at least two (2) in number. 

Sec. 2. All employees covered in Section 1, Article III, except 
those noted in subsections " a ", " b ", " c ", and " d ", who work in 
excess of eight (8) hours per day or forty (40) hours per week and 
employees noted in subparagraph " c " of Section 1 of Article III, 
who work in excess of nine (9) hours per days or forty-four (44) 
hours per week, shall be paid not less than one and one half times 
their normal pay for such excess. 

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. After the approval of this Code, the Code Authority may 
present recommendations as to upward adjustments in minimum 
wages for specific localities, in order to effectuate the purposes of 
Title I of the Act. 

Sec. 5. Equitable adjustment of compensation of employees re- 
ceiving more than the minimum rates of pay herein prescribed shall 
be made by all employers who have not heretofore made such ad- 
justments, and all employers shall within thirty (30) days after 
approval of this Code, report in full to the Code Authority concern- 
ing such adjustments whether made prior to or subsequent to such 
approval, provided, however, that in no event shall hourly rates of 
pay be reduced. 

Sec. 6. Female employees performing substantially the same work 
as male employees shall receive the same rate of pay as male 
employees. 

Sec. 7. A person whose earning capacity is limited because of age 
or physical or mental handicap may be employed on light work at a 
wage below the minimum established by this Code if the employer 
obtains from the State Authority designated by the United States 
Department of Labor a certificate authorizing his employment at 
such wages and for such hours as shall be stated in the certificate. 
Each employer shall file with the Code Authority a list of all such 
persons employed by him. 

Sec. 8. All employees, except those covered in subdivisions "(a)" 
and "(b)" of Section 1, Article III, shall be paid in lawful currency 
or valid checks at least semimonthly. 

Sec. 9. The employer 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 working 
conditions of his employees. 



180 
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 emploj^ed at operations or occupations which are 
hazardous in nature or dangerous to health. The Code Authority 
shall submit to the Administrator before March first a list of such 
operations or occupations. In any State where the law so provides 
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. 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 f r.^e 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 organ- 
ization 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. 3. No employer shall reclassify employees or duties of occu- 
pations performed or engage in any other subterfuge for the purpose 
of defeating the purpose or provisions of the Act or of this Code. 

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. 

Sec. 5. No provision in this Code shall supersede any State or 
Federal law which imposes 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 arc 
imposed by this Code. 

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

Article VI — Organization 

Section 1. To effectuate the policies of the Act, and to cooperate 
with the Administrator in the enforcement of the provisions of this 
Code, the Executive Committee of The Institute is hereby consti- 
tuted a Code Authority; provided, that no inequitable restrictions 
upon membership in the Institute shall at any time be imposed. The 
Code Authority shall have the powers and duties herein provided, 
subject to disapproval by the Administrator. 

Sec 2. For the purpose of cooperating with the Administrator 
with respect to the application of this Code and of said Act, and to 
determine whether the members of the Industry are observing the 



181 

provisions of this Code, and adoptin"^ and maintaining appropriate 
action to effectuate the declared policy of the Act, the Administrator 
may designate not to exceed three (3) representatives without vote 
and without expense to the Industry to confer with, aid, and advise 
the Code Authority at such times and places as such representative, 
or representatives, may request concerning any matters relating to 
the administration of this Code. Such representative or representa- 
tives shall receive such notice of all meetings of the Code Authority 
as is given to the members of said Code Authority. 

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

Sec. 4. Members of the Industry shall be entitled to share the bene- 
fits 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 determined by the Code Author- 
ity, subject to the disapproval of the Administrator, on the basis of 
volume of business and/or such other factors as may be deemed 
equitable. 

Sec. 5. Nothing contained in this Code shall constitute the mem- 
bers of the Code Authority partners for any purpose. Nor shall this 
Code be construed to render any member of the Code Authority 
liable in any manner to anyone for any act of any other member, 
officer, agent, or employee of the Code Authority. Nor shall this 
Code be construed to render any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties here- 
under, liable to anyone for any action or omission to act under this 
Code, except for his own willful misfeasance or non-feasance. 

Sec. 6. 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 dis- 
approve 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 re- 
ports 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 ; pro-vided 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 
trade or any other party except to such governmental agencies as 
may be delegated by the Administrator. 



182 

(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. 

(f) To secure from members of the Industry an equitable and 
proportionate pajanent 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. 

(i) In the event of violation of this Code by a member who has 
specifically assented in writing to the provisions of this paragraph 
(i), the Code Authority, subject to disapproval by the Administrator, 
after having afforded a fair hearing to the member of the Industry 
complained of, may assess as liquidated damages, where the violation 
involves a product a sum equivalent to twenty (20) percent of his 
current trade price of the product involved. When such violation 
does not involve a product there may be assessed as liquidated dam- 
ages a sum not exceeding five hundred (500) dollars, to be paid 
by such member of the Industry. The Code Authority shall imme- 
diately report any such assessment to the Administrator, and such 
assessment shall become payable only after such report has been 
made. Such sums mentioned shall be payable without recourse to 
the Institute within thirty (30) days after the assessment by the 
Code Authority and shall become part of the common funds of the 
Institute. 

Article VII — Price Lists 

Section 1. Upon the eifective date of this Code, each member of 
the industry shall file with the Secretary of the Institute for immedi- 
ate distribution to all members who file similar reports regarding 
similar products, copies of all their price lists, covering all cast-iron 
boilers and/or cast-iron radiators and/or cast iron hot water supply 
boilers manufactured and/or sold, including therein all prices, terms, 
discounts, allowances, and conditions relating to or in anywise af- 
fecting any sales of the same to classes of purchasers defined in this 
Code. Such price schedule shall take effect immediately upon the 
filing thereof. No member of the Industry shall sell products of 
the industry at prices lower, or upon terms more favorable than 
provided in his schedule thus filed unless and until revised schedules 
of prices and terms have been filed by him. Such revised schedules 
shall likewise take effect immediately upon filing thereof. Revised 
price schedules may be filed temporarily by telegram. 



183 

Sec. 2. The following tlefinitioiis of cla.sseh of customers are hereby 
adopted for this Industry. 

(a) "Wholesaler" is one engaged in the distribution of heating 
products, plumbing products, and/or pipe, fittings, and valves, who 
has a substantial and proper investment in his business, maintains 
a warehouse, does not buy for resale, used or damaged heating mate- 
rials, plumbing products, and/or pipe, fittings, and valves, whose 
major sales are to heating and plumbing contractors, who purcliase 
for resale as herein provided, and who does not perform directly 
or indirectly the functions of a low-pressure heating contractor. 
The sale of pipe, fittings, and valves by a wholesaler for other than 
resale purposes for the fabrication of pipe will not be considered 
in conflict with this definition. Two classes of wholesalers shall 
be recognized. 

(1) Those who do not stock either consigned and/or purchased 
boilers and/or radiators. 

(2) Those who purchase and/or receive on consignment boilers 
and/or radiators in carload lots. 

(b) A " Contractor " is defined as one who is licensed, where re- 
quired by State or local Governments, and who installs heating equip- 
ment which he sells to the consumer. Federal, State and local Gov- 
ernments shall be classified as contractors for the purpose of this 
Code. 

(c) A " Mail Order House " is one who has a substantial and 
proper investment in his business and does business nationally 
throughout the United States, who buys in bulk quantities, who 
maintains a warehouse and a sufficiently complete stock of heating 
fixtures to meet all normal reciuirements, and who maintains ade- 
quate showrooms and whose ma] or business is selling to the consumer. 

(d) A " Direct-to-you " is defined as one who has a substantial 
and proper investment in his business, who buys in bulk quantities, 
who maintains a warehouse and sufficiently complete stock of heating 
fixtures to meet all normal requirements and who maintains adequate 
showrooms and whose major business is selling to the consumer. 

(e) If any of the foregoing definitions should work hardship 
upon any member of the Industry or any customer, such member 
of the Industry or such customer may apply to the Code Authority 
which shall have power to grant relief. If the Code Authority 
should deny relief, or should fail to take action upon such applica- 
tion within ten (10) days after receiving the same, such member or 
customer may appeal to the Administrator, who shall have power 
to grant relief. 

Sec. 3. Many members of the Industry sell part of their products 
direct to dealers and/or heating contractors, and part of their prod- 
ucts through wholesalers. In order to prevent indirect evasion of 
the provisions of this Code by members, it is hereby provided that no 
member shall sell any product to or through any wholesaler wlio is 
selling such product to any dealer and/or heating contractor at a 
lower price or on terms more favorable than the prices and terms 
provided in the price list of such member for sales by such member 
direct to dealers and/or heating contractors.* 



^ This section deleted as per order approving this Code. 



184 

Article VIII — Trade Practice Rules 

Section 1. The gi^'ing or offering to give of prizes, gifts, or 
gratuities in the form of money or otherwise, in connection with the 
sale of products, or as an inducement thereto, or the sale of more 
than one commodity at an aggregate price less than the sum of the 
member's regularly established unit prices therefor, shall constitute 
unfair competition. 

(a) The secret payment or allowance of rebates, refunds, com- 
missions, credits, or unearned discounts, whether in the form of 
money or otherwise, or discrimination between purchasers by secretly 
extending to certain purchasers special services or privileges con- 
stitutes a violation of this Code. 

(b) No member of the Industry shall give, permit to be given, 
or directly offer to give, anything of value for the purpose of in- 
fluencing or rewarding the action of any employee, agent, or repre- 
sentative of another in relation to the business of the employer of 
such emploj^ee, the principal of such agent or the represented party ; 
without knowledge of such employer, principal, or party. This 
paragraph shall not be construed to prohibit free and general distri- 
bution of articles commonly used for advertising except so far as 
such articles are actually used for commercial bribery as hereinabove 
defined. 

(c) Tlie making or causing or permitting to be made or published 
any false, untrue, or deceptive statement by wa.j of advertisement or 
otherwise, concerning any product of the Industry, constitutes a 
violation of this Code. 

(d) Defamation of any member of the Industry by words or 
acts and/or the making, causing, or permitting to be made, or the 
publishing of any false, untrue, misleading, or deceptive statement 
by way of advertisement or otherwise concerning any member of the 
Industry, constitutes a violation of this Code. 

(e) No member of the Industry shall knowingly solicit or accept 
any order after the contract therefor has been entered into in good 
faith or offer lower prices or better terms to force a revision of such 
existing contract. 

(f) Each member of the Industry shall invoice his goods sold 
at his actual selling price. 

(g) The accejDtance by any member of the Industry of orders for 
large quantities, except for specific buildings and then making small 
deliveries, invoicing the same at quantity prices for the purpose and 
with the effect of discrminating betAveen different purchasers of 
the same class, constitutes a violation of this Code. 

(h) The acceptance of orders for small quantities from several 
different buyers and shipping the same in a carload for distribution 
to the separate buyers and charging each of such buj^ers on the 
basis of the carload price for the quantity intended for their separate 
use, constitutes a violation of this Code. 

(i) Soliciting or accepting orders for future delivery for other 
than bona fide transactions entered on contract forms sponsored or 
approved by The Institute, as and when such contract forms have 
been approved by the Administrator, constitutes a violation of this 
Code. 



185 

Article IX — Recommendajions and Amendments 

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 destructive competitive practices and to effectuate the other 
purposes and policies of Title I of the National Industrial Recovery- 
Act consistent with the provisions thereof. Also that the Code 
Autliority may from time to time make recommendations to the Ad- 
ministrator relating to provisions of this Code and affecting the 
Industry, and such recommendations, when approved by the Ad- 
ministrator after such hearing as he may prescribe, shall have the 
same force and effect as any other provision of this Code. 

Article X — General Provisions 

Section 1. Nothing contained in this Code sliall be construed, or 
used in such manner as to : 

(a) Promote monopolies or monopolistic practices. 

(b) Permit or encourage unfair competition. 

(c) Eliminate or oppress, or discriminate against small enter- 
prises. 

Sec. 2. This Code is hereby expressly made subject to the right 
of the President, pursuant to Section 10 (b) of Title I of the Na- 
tional Industrial Recovery Act, from time to time to cancel or 
modify any order, approval, license, rule, or regulation issued 
under said Title of said Act, and specifically but without limitation, 
to cancel or modify his order approving this Code, or an}' conditions 
imposed by him upon such approval. 

Sec. 3. 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 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 ap- 
proval by the Administrator. 

Approved Code No. 258. 
Registry No. 1103-05. 

o 



Approved Code No. 259 
CODE OF FAIR COMPETITION 

FOR THE 

HAT MANUFACTURING INDUSTRY 

As Approved on February 5, 1934 



ORDER 



Approving Code of Fair Competition for the Hat INlANiXFACTUBiNa 

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 Hat 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. G543-A, dat«d 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 V, Section 6, insofar as they prescribe a 
waiting period between the filing with the Hat Institute, Incor- 
porated (i. e. actual receipt by the Hat Institute, Incorporated) and 
the effective date of revised price lists or revised terms and condi- 
tions of sale be and the}'^ are hereby stayed pending my further 
notice. 

Hugh S. Johnson, 
Administrator for Industrial Recovei^. 

Approval recommended : 
A. D. Whiteside, 

Division Administrator. 
Washington, D.C, 

February 5, 1931^.. 



32791° 313-73 -34 (187) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Code of Fair Competition for the Hat Industry has 
been approved by the Hat Institute, Inc., and is recommended for 
Executive approval. The Hat Institute is an association of manu- 
facturers representing approximately 90 percent of the combined 
productive capacity in the various branches of the hat industry. 
These branches are: (1) straw hats, including harvest hats; (2) silk 
or opera hats; (3) fur-felt hats for men or boys, either new, second- 
hand, or made-over used hats; (4) fur-felt hat bodies for men's 
and women's hats; (5) wool-felt hat bodies for men's and women's 
hats. 

A proposed Code of Fair Competition for this industry was pre- 
sented by the Hat Institute on July 31, 1933. Following a number 
of conferences, the Code as revised was considered on August 17, 
1933, and on August 29, 1933, at public hearings, over which Dr. 
Lindsay Rogers presided. At these hearings, numerous conflicting 
ideas respecting Code provisions were expressed by members of the 
industry and other interested parties. Most of the discussions at 
the numerous conferences subsequent to the public hearings centered 
about the minimum wage provisions of the Code. The manufacturers 
experienced great difficulty in reconciling their divergent viewpoints 
on the minimum wage provisions, but have now virtually unanimously 
agreed upon the plan incorporated in the submitted Code. The Code 
submitted herewith includes the following articles : 

Article I sets forth definitions of certain important terms used 
in the Code. 

Article II prescribes the maximum hours of work for employees 
in the industry and provides for certain restrictions in the use of 
productive equipment. 

Article III designates a minimum wage rate of $.35 per hour, and 
outlines a number of general rules respecting the application of this 
rate. 

xA.rticle IV embodies the general labor provisions of the Code, 
including the elimination of home work in the industry. 

Article V constitutes a Code Authority for the industry and out- 
lines its duties and powers. 

Article VI prohibits certain unfair trade practices, defined by this 
section of the Code. 

Article VII provides for the distribution and use of NRA labels 
and requires that all hats manufactured and sold must bear such 
labels issued by the Code Authority with the approval of the 
Administrator. 

Article VIII outlines the manner in which the Code may be 
modified. 

(188) 



I 



189 

Article IX states that the purpose of the Code is not to permit 
monopolies or monopolistic practices, or to eliminate, oppress, or dis- 
criminate against small enterprises. 

Article X designates the effective date. 

Annex A outlines certain principles for the guidance of employers 
in effectuating Section 2 of Article III of the Code which provides 
for the equitable adjustment of wages above the minimum. 

NATURE OF THE I^'nUSTRY 

The various branches of the industry may be grouped into three 
classifications : 

1. The manufacture of men's straw hats from purchased braids, 
and of Panama hats from purchased bodies; 

2. The manufacture of felt liat bodies of wool or fur in so-called 
*' back shops " ; 

3. The manufacture or finishing of wool or fur felt hats from 
felt hat bodies in so-called " front shops." 

In terms of value of product or of number of wage earners, the 
fur-felt section represents by far the most important branch of the 
industry. Almost four fifths of the total value of hat production 
in 1929 was contributed by the ful-felt branch. 

The fur-felt hat branch of the industry is located principally in 
Connecticut, Pennsylvania, and New York. Straw Hat manufac- 
turing is also concentrated to a large extent, as is evident from the 
fact that in 1931 over three quarters of the production was supplied 
by New York, Missouri, Massachusetts, and New Jersey. 

More than 75 percent of the employees in this industry are found 
in plants with 100 or more employees, while over one third of the 
industry work-force finds employment in the relatively few plants 
employing 1,000 workers or more. While the industry includes 
many small plants, they are not responsible for the large proportion 
of the workers employed. In 1931 the entire industry employed an 
average work-force of 18,450 workers, of whom 14,084 were in the 
fur-felt branch, as compared with 2,823 in straw-hat manufacturing, 
and 1,543 in the wool-felt branch. The percentage of unskilled labor 
in the hat industry is small, particularly in the fur-felt branch, wdiere 
nearly three quarters of all employees are male. In the straw-hat 
section of the industry, about one half of all employees are male. 

In recent years, the hat industry has encountered a decline in the 
demand for its product. To no small extent the " hatless fad " is 
responsible. The value of this industry's product in 1929 was almost 
$130,000,000, but by 1931 the value had decreased nearly 40 percent 
to approximately $79,000,000. The industry feels that, in view of 
its declining trend, it cannot increase too greatly its costs and the 
price for its product without inducing a greatly lowered con- 
sumption. 

THE WAGE PROVISIONS OF THE CODE 

The Code as originally submitted by the Hat Institute, Inc., pro- 
vided for a guarantee of one minimum rate of $.35 per hour, below 
^ which no employee should be paid. At the public hearing, and at 



190 

subsequent conferences, it became evident that this proposal did not 
have the approval of a large group of manufacturers, many of whom 
were members of the Hat Institute. To a large extent, they were 
manufacturers who, because of union agreements or otherwise, 
claimed to be paying wages greatly in excess of their competitors. 
They maintained that if fair competition were to prevail the average 
wage paid by the industry would have to be increased to a greater 
extent than would be insured through the operation of a $.35 mini- 
mum alone. At any event, they refused to assent to the originally 
submitted Code, and created an association known as the Allied Hat 
Manufacturers, Inc., to submit a second proposed Code for the indus- 
try. This Code, presented during the conferences following the pub- 
lic hearing, provided for occupational classifications in great detail 
and provided a series of minimum wages for these classifications. 
The plan of this group was finally siriiplified to provide for the deter- 
mination of several occupational basing points for which minimum 
hourly rates were designated. Representatives of labor insisted upon 
detailed occupational classifications and the provision of minimum 
hourly rates for these classes. 

AVhile other differences of opinion prevailed among the manufac- 
turers, the major divergence resulted from the insistent demand of 
one representative group for the insertion of occupational classifica- 
tions in the. code, and an even more strenuous demand of another rep- 
resentative group that but one minimum hourly rat« be specified. 
For man}^ weeks, in numerous conferences, it appeared to be impos- 
sible for the manufacturers to reconcile their differences, despite the 
fact that literally scores of compromise plans were suggested and dis- 
cussed. Finally a general agreement was obtained with respect to 
the plan of wage payment now embodied in the code, and which was 
based upon a payroll analysis of present earnings in about fifty 
manufacturing concerns. 

By Article 3, Section 1, of the recommended code, it is provided 
that no employee shall be paid at less than the rate of thirty-five 
cents ($.35), while Section 2 of Article 3 sets forth that wages above 
the thirty-five-cent ($.35) rate are to be equitably adjusted in accord- 
ance with the principles outlined in Annex A of the Code. In that 
Annex, certain schedules of minimum hourly rates above the min- 
imum provided for least skilled employees are specified for the prin- 
cipal branches of the industry. These minimum hourly rates are 
not to be effective as to specified occupational groups but to specified 
percentages of total number of employees. For example, wages 
above those received by the least skilled employees are to be equitably 
adjusted in the fur-felt industry, and the result of this adjustment is 
to be that at least fifteen percent (15%) of the employees in a plant 
are to receive eighty cents ($.80) per hour or above, at least an 
additional twenty percent (20%) are to receive seventy cents ($.70) 
an hour or above, and at least an additional twenty-five percent 
(25%) of the employees are to receive not less than fifty cents ($.50) 
per hour. 

The determination of the particular percentages of employees in 
each wage classification was based upon an analysis of the earnings 
prevailing in fifty (50) hat manufacturing plants during the summer 
of 1933. 



191 

That this statement of principle ^overnin<y wa<^e adjustments is 
considered as experimental is evidenced by the fact that Annex A 
provides the Administrator with the right to cancel or modify this 
provision of the code after due notice and hearing. In order that 
the adequacy of the provision may be appraised by the Adminis- 
trator, the code specifies that the Code Authority shall report to the 
Administrator within ninety (90) days as to whether the plan as 
prescribed constitutes an equitable adjustment of wages and whether 
it tends to establish maximum as well as minimum wages. 

Certain manufacturers in the industry have maintained their in- 
ability to adjust wages to conform with the principles outlined in 
Annex A. They have urged that a differential be provided below 
the code minimum wage provisions as the basis for the adjustment 
of their wages. These manufacturers, located largely in the Middle 
West, emphasize the need for this differential by ]iointing out their 
competitive disadvantage arising from (1) the production of cheaper 
hats in certain of their plants; (2) the employment of less skilled 
■workers; (3) location; (4) the employment of a relatively large pro- 
portion of female employees, particularly in some straw-hat plants. 

There has been no submission of sufficient and adequate facts 
whereby there could be an objective determination of the need for 
establishing this differential, the necessary size of the differential, or 
that exact portion of the industry to which it should prevail. In 
order that this problem may be further explored, the application 
of Annex A of the Code is stayed for a period not to exceed 35 days 
from the effective date. In addition, it is provided that the Code 
Authority shall make such recommendations as it deems proper with 
respect to the granting of differentials below the percentage minima 
of the Code to any manufacturer or group of manufacturers. Such 
recommendations may be approved by the Administrator after due 
notice and hearing. 

HOURS OF WORK 

By the terms of Article II of the Code, it is provided that no 
employee in the industry engaged in productive operations shall 
be permitted to work in excess of forty (40) hours in any one week. 
In June 1933 the employees in the fur-felt branch of the industry 
were working an average full-time schedule of 50 hours, although 
actual operations during most of the months were below the hours 
of a full-time week. The Division of Economic Research and 
Planning has estimated that a 40-hour week will possibly result 
in the re-employment of about 2,900 workers in the fur-felt branch 
of the industry and about 4,000 workers in the entire industry. In 
1929, over 23,000 workers were attached to this industr}^ while the 
largest number employed in any month of 1933 has been estimated 
at about 16,000. It is possible that the 40-hour week may. therefore, 
relieve a considerable extent of the unemployment problem of the 
industry. 

It has been maintained by labor representatives that the 40-hour 
Aveek will not lead to a significant decrease in the number of un- 
employed hat workers. In support of this position, they call atten- 
tion to the difference in numbers employed in 1929 as compared 
with 1933. The plan suggested by the labor representatives included 



192 

a 35-hour week and sing:le-shift operation of forming equipment. 
Manufacturers called attention to their seasonal requirements which 
necessitate two-shift ojDeration. and to the fact that the 35-hour week 
would unduly increase costs in an industry that is experiencing a 
declining trend in the demand for its product. 

In order that the hours provisions of this Code may be properly 
evaluated, the Code Authoritj' has the duty to conchict an investiga- 
tion to ascertain whether the maximum work week as provided is 
effectuating the purpose of the Act. The results of this investiga- 
tion are to be reported to the Administrator. 

WOOL-FELT HATS 

It is reported that ten concerns in the industry now make wool- 
felt hats, as compared with twenty-two factories in 1925. The pro- 
duction of this branch of the industry has declined steadilj', while im- 
portations of wool-felt hats and hat bodies have increased. For the 
first nine months of 1933 it is estimated that 42.8 per cent of new 
wool-felt hats were of domestic manufacture, as compared with 57.2 
percent which were imported. Operating under the increased costs 
wdiich resulted from compliance Avith the President's Reemployment 
Agreement, these mills report increased difficulty in competing with 
importations. From September 1 to September 15, 1933, wool-hat 
plants produced 42,000 dozen women's hat bodies as compared with 
nearly 77,000 dozen for the same period in 1932. 

Because of the peculiar circumstances prevailing in this section of 
the industry, the Code provides that wool-felt manufacturing be 
subject to but one minimum- wage requirement, that no employee 
receive less than $0.35 per hour. However, the minimum w^age scale 
payable by this branch may be revised upon a determination of 
a complaint it contemplates filing under Section 3 (e) of the 
National Industrial Recovery Act. 

FINDINGS 

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 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, 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 agri- 
cultural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 



193 

(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 Sub?ection (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 [)ermit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppi-ess 
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. 
February 5, 1934. 



82791 " 313-73 34 2 



CODE OF FAIR COMPETITION FOR THE HAT MANU- 
FACTURING 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 Hat Manufacturing Industry, and shall 
be the standard of Fair Competition for such industry, and shall 
be binding upon every member thereof. 

Article I — Definitions 

1. The term '• hat manufacturing industry " oi- the term '' indus- 
try ". as used herein, includes the manufacture, renovation in hat 
factories, and/or finishing, blocking and trimming, in the United 
States or in anj'^ territory, or insular possession, or other place under 
the jurisdiction of the United States, by members of the industry. 

A. Straw hats and other summer headwear (except caps and 
millinery) including all men's and boys' summer headwear finished, 
blocked and/or trinnned from imported or domestic hat bodies, and 
straw hat bodies, and including harvest hats as hereinafter defined. 

B. Silk or opera hats. 

C. Fur-felt hats, either new, second-hand, or made-over-used, for 
men and boys. 

D. Fur-felt hat bodies for men's and women's hats. 

E. Wool-felt hats for men. 

F. "Wool-felt hat bodies for men's and women's hats. 

Tlie term "' Harvest hats " means hats made of hoods and/or 
bodies imported under the provisions of paragraph 1504 (b) (5) 
of the Tariff Act of 1930. with patch sweatbands not over six inches 
long, and does not include Toyo bodies or any sewed braid hats. 

2. The term " employee " as used herein includes anyone engaged 
in the industiy in any capacity, receiving compensation for his 
services, irrespective oi the nature or method of payment of such 
compensation and shall include appi'entices. 

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

4. The term '" member of the Industry " includes anyone engaged 
in the Industry as above defined either as employer or on his own 
behalf, whether as a manufacturer or as a contractor or subcon- 
tractor as hereinafter defined. 

5. The term " contractor " or " subcontractor " means anyone en- 
gaged in the Industry who manufactures or assembles products 
under contract, express or imi)lied, wliereb}' a customer directly or 
indirectly supplies to such contiactor or subcontractor money, and/or 



195 

credit, and/oi- materials, aiul/or any services for, or in fonnection 
with, filling orders for such customer. 

Cx The term " Institute " means tlie Hat Institute, Inc. 

7. The terms " President ", "Act '', and "Administrator '' as used 
herein, sliaJl mean, I'espectivel}', the President of the United States, 
the Natioi\al Industrial Recovery Act, and the Administi'ator of 
the said Act. 

Article II — Hoiks 

1. Except as hereinafter provided, no employee or member of the 
Industry engaged in manual and/or mechanical processes of manu- 
facture, shall be permitted to work in excess of forty (40) hours in 
any one week. 

The Code Authority shall make an investigation to ascertain 
whether the maximum work week herein provided is effectuating the 
purposes of the Act, and shall report thereon to the Administrator. 

2. Office employees, repair shop crews, engineers, electricians, fire- 
men, stock clerks, box packers and shippers, watching and outside 
crews, scrub women, charwomen, and others similarlj^ employed, shall 
not be permitted to work in excess of forty (40) hoiirs in any one 
week, except that during the spring and fall seasons such employees 
shall be permitted to work not more than an additional eight (8) 
hours in any one week, and shall be paid their regular rate of com- 
pensation for any time worked in excess of forty (40) Iiours in any 
one week. 

The Code Authority shall report to the Administrator before 
March 1, 1934, with recommendations in respect to the hours of labor 
of the excepted employees described herein, and the Administrator 
may approve any such recommendations. Upon his approval they 
shall have full force and effect as provisions hereof. 

3. The maximum hours fixed in the foregoing sections shall not 
apply to supervisory employees, including foremen, receiving thirty- 
five dollars ($35.00) per week or more, nor to outside salesmen. 

4. The foregoing provisions for maxinmm hours of labor mean 
the maximum hours of labor per week for each employee in the In- 
dustry so that under no circumstances shall such an employee be 
knowingly employed or permitted to work for one or more employers 
in the Industry in excess of the aggregate prescribed number of hours 
in a single week. 

5. There shall be only one shift of labor per day in the finishing 
department in the manufacture of felt hats and in the sewing, press- 
ing, and blocking departments in the manufacture of straw, Panama, 
and other body hats (except harvest hats). 

Article III — Wages 

1. No employee shall be paid at h'ss than the rate of thirty-five 
cents ($0.35) per hour. 

2. Wages above the minimum provided herein shall be equitably 
adJTLsted in accordance with the principles set forth in Annex A of 
this Code; provided, however, that such principles sliall not be con- 
strued or applied so as to set maximum as well as minimum wages. 



196 

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 engaged in productive operations and per- 
forming substantially the same quality and quantity of work as male 
employees sliall receive the same rates of pay as male employees. 

5. Employees shall not be required or compelled to wait unreason- 
able lengths of time for the assignment or continuation of work 
unless adequate compensation is paid for such waiting periods; and 
it shall be prima facie evidence of a violation of this provision that 
employees are required to wait for assignment or continuation of 
work in excess of one continuous hour. The compensation for such 
waiting period, in excess of one continuous hour, shall be based upon 
the average earnings of such employees computed upon the most 
recent pay-roll records. 

6. All employees shall be paid directly by their employers and the 
pay-roll records shall contain the name or identification number of, 
and the wages paid to, each employee. 

Article IV — General, Labor Prom:sions 

1. No person under sixteen (16) years of age shall be employed in 
the Industry, nor anyone under eighteen (18) years of age at opera- 
tions dangerous to life or limb. The Code Authority shall submit to 
the Administrator before March 1, 1934, a list of such occupations. 
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 tlieir 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 emplojnnent to join any company union or to re- 
frain from joining, organizing, or assisting a labor organization of 
his own choosing. 

4. Eraplo3'ers shall comply with the maximum hours of labor, min- 
imum rates of pay, and other conditions of employment approved or 
prescribed b}^ 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 Avork, or health, fire, 
or general working conditions than under this Code. 

6. Emploj^ers shall not reclassify employees, or duties of occupa- 
tions of emploj^ees, so as to defeat the purposes of the Act. 

7. No merchandise shall be manufactured by " home work " as 
hereinafter defined. 

The term " home work " as used herein, is hereby defined to mean 
the performance of any manufacturing operation, whether by ma- 
chine or hand, in any home, tenement house, or basement. 



197 

ArTK LK V AniVlINISTRA'nON 

Further to effectuate the policies of the Act. a Code Authority is 
hereby constituted to coopei'ate witli the Adiniijistrator in the admin- 
istration of this Code. 

1. Orjianization and Constitution of the Code Authoi'ity. 

(a) The Code Authority sliall consist of twelve (12) individuals 
to be ajjpointed by the Board of Directors of the Institute, and of 
one (1) individual to represent nonmembers of the Institute if and 
when elected by such nonmembers by a fair method of selection 
approved by the Administrator. 

The Administrator may appoint two (2) additional members, 
without vote, to represent such groups or interests or such govern- 
mental agencies as he may designate. 

Two (2) members, without vote, may be appointed by the Admin- 
istrator on recommendation of the Labor Advisory Board to T-epre- 
sent Labor. 

(b) The 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 when 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. 

(c) The Code Authority may appoint its ow^n oflicers and em- 
ployees and, except as herein provided, prescribe, subject to the ap- 
proval of the Administrator, rules, regulations, and bylaws for its 
procedure and the conduct of its business and affairs. 

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

2. The Code Authority shall have the following duties and powers 
to the extent peraiitted by the Act, subject to the right of the 
Administrator on review to approve or disapprove an}- action taken 
by the Code Authority: 

(a) Review all questions or disputes arising under this Code; 

(b) Insure execution of the provisions of this Code and provide 
for the compliance of the Industry with the provisions of the Act; 

(c) Shall receive complaints of violations of this Code, make in- 
vestigations thereof, provide hearings thereon, adjust such com- 
plaints, and refer unadjusted violations to the Administrator with a 
report and recommendations for appropriate action; 

(d) 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 



198 

associations and agencies shall at all times be subject to and comply 
with the provisions hereof ; 

(e) Investigate the importation of competitive articles into the 
United States on such terms or under such conditions as to render 
ineffective or seriously endanger the maintenance of the Code, and 
act as the agency for making complaint in respect thereof to the 
President on behalf of the Industry ; and 

(f) To secure from members of the Industry 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) Submit to the Administrator from time to time such pro- 
posed amendments to the Code as, in its judgment will have the 
effect of improving the Code or improving the results secured there- 
under, and any of such proposed amendments, when approved by 
the President, shall have force and effect as provisions of the Code. 
Every proposed amendment shall be so submitted only after a 
canvass of the opinion of the Industry by the Code Authority. 

(i) To make recommendations for the limitation and supervision 
of handicapped persons employed below a minimum wage. 

3. For the purpose of aiding the Code Authority in judging as to 
the observance of the Code, in gauging the extent to which the objec- 
tives of the Act are being attained, and considering any necessary 
amendments or additions to the Code, each member of the Industry 
shall furnish to the Institute properly certified reports of such char- 
acter and in such form as the Code Authority may prescribe, with the 
approval of the Administrator, including — 

(a) Xumber of employees; 
(h) Wages paid employees; 

(c) Hours of work performed by each employee; 

(d) Stocks on hand, production, and unfilled orders, together with 
such other statistics and information as may be required from time 
to time. 

4. For the purpose of assuring to the Code Authority the advice 
and suggestions of the major branches of the Industry, the Institute 
shall provide for the selection in each of the major branches of the 
Industry of an Advisory Committee. Such Advisory Committees 
shall make such recommendations to the Code Authority as they may 
deem necessary and advisable with reference to their particular 
branches of the Industry. They may also submit recommendations 
affecting the whole Industry or propose amendments to the Code. 

5. The Code Authority may cause the Secretary of the Hat Insti- 
tute, Incorj^orated, or such other confidential agency as the Code 
Authority may determine, with the approval of the Administrator, 
to make such investigations of members of the Industry as it may 
deem advisable in order to determine Avhether or not any member of 
the Industry is violating any provision of this Code. All informa- 
tion so received shall be held secret and confidential between the 
Secretary of the Hat Institute, Incorporated, and/or confidential 
agency and the reporting member. 



199 

6. Each member of the Industry shall, within ten (10) days after 
the effective date of the Code, file with the Institute a list showing 
the prices for all its products, discounts therefrom and terms of 
sale, and from and after the expiration of such ten (10) day period, 
each member of the Industry shall at all times maintain on lile with 
the Institute a list showing' the prices for all its products, together 
witli discounts and terms, and shall not make any change therein 
except as provided for in this Section. Each such list shall state 
the date upon which it shall become effective, which date, in the 
event of a price increase, shall be not more than five (5) days after 
the date of the filing- of such list as aforesaid, and, in the event of 
a price decrease, shall be not less than five (5) days after such date 
of filing; provided, however, that the first list filed by any member 
of the Industry as above provided, shall take effect on the date 
of filing thereof. None of tlie prices, discounts, or terms, shown 
in an}^ list filed by any member of the Industry as herein provided 
shall be changed except by the filing by such member of the Industry 
with the Institute of a new list, which shall become effective on the 
effective date therein specified, which date, in the event of a price 
increase, shall be not more than five (5) days after the date of the 
filing of such list as aforesaid, and, in the event of a price decrease, 
shall be not less than five (5) days after such date of filing. The 
prices, discounts, and terms in effect prior to the filing of such new 
list shall continue in effect until those set forth in such new list shall 
become effective as above provided. All such lists shall be available 
for inspection by any member of the Industry or other interested 
party at all reasonable hours. 

7. The Code Authority may recommend to the Administrator 
discounts and terms of sale, which, upon approval by the Adminis- 
trator shall become effective provisions of this Code. 

8. 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 Authorit}^ exer- 
cising reasonable diligence in the conduct of his duties hereunder, 
be liable to anyone for any action or omission to act under the Code, 
except for his own willful misfeasance or nonfeasance. 

9. All information received by the Code Authority by virtue of 
the operation of any provision of this Code shall be deemed con- 
fidential and sliall not be published, or otherwise disseminated in the 
Industry, but shall be available to the Administrator. 

10. No action of the Code Authority on any matter shall be effec- 
tive unless the same shall have been passed by the affirmative vote 
of not less than two thirds (%) of the entire voting members thereof. 

11. If the Administrator shall determine that an}^ 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 
opportunit}^ for investigation of the merits of such action and fur- 
ther consicleration by such code authority or agency pending final 
action, which shall be taken only upon approval by the Administrator. 



200 

Article VI — 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 
an}^ 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. Mi^representatimi 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, 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. 

3. Commercial Bribery. — No member of the Industry shall give, 
jDermit 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 or another in relation to the business of the 
employer of such employee, the principal of such agent or the repre- 
sentative party, without the knowledge of such employer, principal, 
or party. Commercial bribery provisions shall not be construed to 
prohibit a general distribution of articles commonly used for adver- 
tising, except so far as such articles are actually used for commercial 
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 con- 
tractual duties or services. 

5. Discrimination. — There shall be no discrimination in price 
between customers of the same class by paying or allowing rebates, 
refunds, commissions, or unearned discounts, or by giving prizes or 
by extending to certain customers special prices, terms, services, or 
privileges not extended to all customers of the same class under like 
terms and conditions, except that, in his discretion, a member of the 
Industry may grant any customer an allowance for advertising pur- 
poses of any sum which shall not exceed five percent (5%) of the net 
amount of the purchases of such customer from such member of the 
Industry before discounts in any year, provided that no such allow- 
ance shall be made by any member of the Industry unless the cus- 
tomer shall contribute to such advertising at least an equal amount 
in such year, provided that bills rendered for such allowance are 
accompanied by proof of the advertising expenditure. 

G. Giving of Prizes., Premiums., or Gifts. — The offering or giving 
of prizes, premiums, or gifts in connection with the sale of products, 
or as an inducement thereto, by any scheme which involves lottery, 
misrepresentation, or fraud. 

7. Defamation. — The defamation of competitors by falsely imput- 
ing to them dishonorable conduct, inability to perform contracts, 



I 



201 

uestioniible credit standing, oi- by other false representations, or by 
tlie false disparagement of the grade or quality of their goods. 

8. Threats of IJfigafiov. — The publishing or cii-cularizing 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 tlieir customers. 

9. Espionage of Coynpetitoi's. — Securing confidential information, 
concerning the business of a competitor by a false or misleading 
statement or representation, by a false impersonation of one in 
authority, by bribery, or by any other unfair method. 

10. Suhstitutions. — Using or substituting any material superior in 
quality to that specified in the contract of sale, or using or sub- 
stituting any metliod of manufacture not in substantial accordance 
with the contract with the purchaser for the purpose of securing an 
unfair competitive advantage. 

11. Invoices. — Invoicing products with dates other than dates of 
shipments in order to evade published prices and terms filed in ac- 
cordance with the provisions of this Code. 

12. Charges and CoUeGtions. — Failing to charge for any product 
delivered to a customer in accordance with the prices on file with 
the Institute at the dates of sale. 

13. Cost Accowiting. — No member of the Industry shall sell any 
commodity at a price below his own individual cost. However, any 
member may meet the price competition of anyone whose costs under 
this Code provision are lower. 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 Admin- 
istrator. Distress merchandise, surplus stcKdc, seconds, and samples 
shall be excepted from this provision. Subject to the approval of 
the Administrator, the Code Authority shall adopt rules and regu- 
lations governing the disposal of such merchandise below cost. 

14. Consignments. — Subject to the extent necessary to carry out 
arrangements existing on the effective date of the Code, which ar- 
rangements shall be reported to the Code Authority, delivering 
products on consignment or selling with the privilege of return. 

15. Made-Over-U S( d Hats. — Selling or offering for sale, old, worn, 
used or discarded hats which have been cleaned and/or fitted with 
ribbons, sweatbands, or linings, unless and until there is stamped 
upon the exposed surface of the sweatbands of such hats the words 
" Made-over-used hat " in metallic letters at least one quarter of an 
inch high or clearly embossed letters as prescribed by the Code 
Authority. 

16. Payment of Wages. — Employees shall be paid in cash or by 
check at least every two weeks all wages accruing to within eight (8) 
days of the date of payment, and no such check shall knowingly 
be issued which may not be promptly cashed in full by the payee. 
An employee voluntarily leaving employment shall be paid in full 
not later than the following regular pay-day, and an employee dis- 
charged from employment shall be paid in full not later than the 
business day next succeeding the date of such discharge. 

Provided, however, that upon proper showing of undue hardship 
the Code Authority may grant an exception from any of the above 



k 



202 

provisions, subject to the right of an employer to appeal to the 
Administrator. 

17. Infringeinents. — Using, imitating or simulating any exclusive 
name, trade-mark or brand owned by any other member of the In- 
dustry for the purpose of securing an unfair competitive advantage. 

Article VII — Labels 

All hats manufactured or distributed subject to the provisions of 
this Code shall bear an N.R.A. label to symbolize to purchasers of 
said hats the conditions under which they were manufactured. Un- 
der the power vested in it by the Executive Order of October 14, 
1933, and under grant of the necessary authority by the Administra- 
tor, the Code Authority shall have the exclusive right in this In- 
dustry to issue and furnish said labels to the members thereof. 
There shall be one type of label for new hats and one type for 
made-over-used hats. Each label shall bear a registration number 
especially assigned to each emploj^er by the Code Authority and re- 
main attached to such hat when sold to the retail distributor. Any 
and all members of the industry may apply to the Code Authority 
for a permit to use such N.R.A. label, which permit to use the label 
shall be granted to them, but only if and so long as they comply 
with this Code. Such labels may be attached to hats manufactured 
and/or delivered prior to the effective date, if manufactured by a 
member of the industry Avho is complying with the Code at the 
time they are so attached. 

The Code Authority, subject to approval hj the Administrator, 
shall establish rules and regulations and appropriate machinery for 
the issuance of labels, and the inspection, examination and supervi- 
sion of the practices of emploj^ers using such labels in observing the 
provisions of this Code for the purpose of ascertaining the right of 
said employer to the continued use of said labels; of protecting 
purchasers in relying on said labels; to assure to each individual 
employer that the sjanbolism of said label will be maintained by 
virtue of compliance with the practices herein contained by all other 
employers using said labels. 

The charge made for such labels 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 printing, distribution, and 
administration and supervision of the use thereof as hereinabove 
set forth. 

With respect to the harvest hat industry, the Code Authority 
shall make recommendations concerning the application of this pro- 
vision so that the Administrator, in his discretion, may make this 
section effective with respect to said Industry. 

Article VIII — Mgdification 

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- 



203 

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

2. This Code, except as to provisions required by the Act, may bo 
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 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 — Effective Date 

This Code shall become effective on the second Monday after 
date. 

Approved Code No. 259. 
Registry No. 233-02. 



ANNEX A 

In accordance with Section 2 of Arlicle III of tlie Code, tlie following prin- 
ciples shall guide employers in the adjustment of wages above the niiuimum 
provided in the Code : 

A. In the production of fur-felt hat bodies and fur-felt hats, at least fifteen 
per cent (159t) of the total number of employees shall receive not less than 
eighty cents ($0.80) per hour; at least an additional twenty percent (20%) 
of the total number of employees shall receive not less than seventy cents 
($0.70) per huur ; and at least an additional twenty-five percent (25%) of the 
total number of employees shall receive not less than fifty cents ($0.50) per 
hour. 

B. In the prcduction of straw hats and other summer headwear as defined 
In Article I, Section 1, paragraph A, of this Code (other than harvest hats) 
at least fifteen percent (15%) of the total number of employees shall receive 
not less than eighty cents ($0.80) per hour; at least an additional twenty per- 
cent (20%) of the total number of employees shall receive not less than 
seventy cents ($0.70) per hour; and at least an additional twenty-five percent 
(25%) of the total number of employees shall receive not less than forty 
cents ($0.40) per hour. 

C. In the production of wool-felt hat bodies and wool-felt hats the minimum 
rate of thirty-five cents ($0.35) per hour as provided in Article III, Section 1, 
of this Code, shall apply provided that the Code Authority shall make such 
recommendations as it de^ms proper and necessary to cover higher paid 
workers on a percentage basis similar to that set forth in the preceding sub- 
divisions designated "A" and " B " of this section, depending upon the out- 
come of complaint filed under section 3 (e) of the Industrial Recovery Act. 
The Administrator may approve such recommendations after due notice and 
hearing, and upon his approval thereof they shall become effective provisions 
of this Cede. 

D. Provided, that in computing the above percentages, there shall be ex- 
cluded office employees, salesmen, partners, executives, officers, and foremen. 

Provided, however, that the application of the above shall be stayed for a 
period not to exceed thirty-five (35) days after the effective date hereof; and 

Provided, further, that the Code Authority shall make such recommendations 
as it deems proper with respect to the granting of differentials to any manu- 
facturer or group of manufacturers below the percentage minima herein set 
forth. The Administrator may approve such differentials after due notice 
and hearing, and upon his approval they shall become effective provisions of 
this Code. 

The Cede Authority shall report to the Administrator within one hundred 
twenty (120) days as to whether the operation of the above principles con- 
stitutes an equitable adjustment and whether it tends to establi.sh maximum 
as well as mininjum wages, and the Administrator after due notice and hear- 
ings, may cancel or modify the provisions of this Annex. 

(204) 

o 



Approved Code No. 260 
CODE OF FAIR COMPETITION 



FOR THE 



ORNAMENTAL MOLDING, CARVING, AND 
TURNING INDUSTRY 

As Approved on February 5, 1934 



ORDER 



Approving Code of Fair Competition for the Ornamental 
Molding, Carving, and Turning Industry 

An application having been duly made pursuant to and in fidl 
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 Ornamental Molding, Carving, and Turning 
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; jorovided, how- 
ever, that the provisions of Article VIII (Section 2), insofar as they 
prescribe a waiting period between the filing with the Code Author- 
ity 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 sixty days from the effective date of 
this Code or after the completion of a study of open-price associa- 
tions now being conducted by the National Recovery Administration. 

Hugh S. Johnson, 
Adfiiinistrator for Industrial Recovery, 

Approval recommended : 
W. A. Harriman, 

Division A dministrator. 

Washington, D.C, 

Fehruary 5, lOSIi.. 

38142° 376-8 34 (205) 



REPORT TO THE PRESIDENT 

The President, 

The White Hotcse. 
Sir: This is a report on the Code of Fair Competition for the 
Ornamental Molding, Carving", and Turning Industry in the United 
States, the hearing being conducted in Washington, D.C., on Decem- 
ber 13, 1933, in accordance with the provisions of the National 
Industrial Recovery Act. 

PROVISIONS ON HOURS AND WAGES 

The maximum hours provided in this Code for employees are 
forty (40) hours per week and eight (8) hours per day. When pro- 
duction demands it. a tolerance of five hours per week is allowed 
])rovided the forty (40) hour per week average in each six months' 
period is maintained. 

Employees engaged in emergency maintenance and repair work are 
excepted from hourly limitations under prescribed conditions and 
are allowed a one and one third overtime rate of pay. A tolerance 
of ten (10) percent is allowed for firemen, engineers, and shipping 
crews. Watchmen and night firemen are permitted to work forty- 
eight (48) hours per week averaged each two weeks. Truck drivers 
are made subject to the provisions of the Code for the appropriate 
division of the Trucking Industry, when such Code shall have been 
approved. The usual exemption is granted to executive and super- 
visory employees regularly receiving $35.00 or more per week, to 
outside salesmen, and also to designers receiving like compensation. 

The minimum wage f)rovided for employees in designated southern 
territory is thirty (30) cents per hour and for employees in all other 
territories is thirty-four (34) cents per hour. 

Apprentices, the number not to exceed five (5) percent of the 
employees of an}- one employer at any one time, may be employed for 
a period not to exceed three months at eight}^ (80) percent of these 
minimum rates. 

CHILD LABOR 

The minimum age provided in this Code is 16 years, but in 
hazardous occupations this age limit is increased to 18 years. 

ECONOMIC EFFECT OF THE CODE 

The volume of the output of this industry has dropped nearly 
70 percent during the depression and approximately 25 percent of 
the concerns ceased to operate. There was a marked improvement 
during the second half of 1933, but the employment under the 
President's Reemployment Agreement under which practically the 
entire industry operated, was still about fifteen (15) percent less 
than in 1929. This is partly due to the fact that such a large num- 
ber of concerns had ceased to operate altogether. Increased volume 
in part has meant more man hours for those employed, but not an 
increased number of employees sufficient to absorb all the 1929 work- 
ers in this industry. In view of the close relationship between this 

(206) 



207 

industry and the furniture industry it did not seem wise to provide 
less hours than aUowed for that industry. 

With fifteen (15) percent fewer employees than in 1929 it is not 
likely that the 1929 purchasin<2; power of the workers in this indus- 
try as a group will be restored by the wage provisions of this Code. 
A study of the material available by the Division of Research and 
Planning does reveal, however, that the average purchasing power 
of the workers will be somewhat increased over that of 1929. The 
minimum wage specified in the Code is about twelve (12) percent 
higher than the average minimum in 1929 and about thirty (30) 
percent higher than the average minimum in June 1933. 

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 
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 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 hereof; and that the applicant associa- 
tion 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, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
February 5, 1934. 



CODE OF FAIE COMPETITION FOR THE ORNAMENTAL 
MOLDING, CARVING AND TURNING 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 
Ornamental Molding. Carving and Turning Industry, and its pro- 
visions shall be the standards of fair competition for such industry 
and shall be binding upon every member thereof. 

Article II — Defikitions 

Section 1. Ornamental Molding, Carving and Turning Industry — 
The term " Ornamental Molding, Carving and Turning Industry " 
as used herein is defined to mean the manufacture for sale of products 
commonly known as ornamental, cut, carved, embossed or pressed, 
rope, bead, metal-covered wood, veneer covered and composition 
moldings; embossed or pressed wood, composition, fiber, spindle, 
multiple spindle, hand carved and sand blasted ornaments or carv- 
ings, and marquetry: wood knobs and composition or fiber knobs 
for sale to the radio and furniture industries; and glue dowels, except 
as such dowels may be specifically included in the industry definition 
of any other Code approved by the President; turnings and plain 
wood moldings for sale to the furniture industry. The above defini- 
tion shall not include the following: 

(a) Original ;works of art carved by hand in wood from models or 
from free-hand drawings for use as architectural decorations in 
buildings. 

(b) Dimension stock as covered by the Code for the Lumber and 
Timber Products Industry. 

Sec. 2. Memhers of the hidustty. — The term " member of the 
industry *' includes, but without limitation, any individual or enter- 
prise engaged in the industry, either as an employer or on his or its 
own behalf. 

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

Sec. 4. President, Act, and Adininistrator. — The terms " Presi- 
dent ", " Act ", and "Administrator " as used herein shall mean, 
respectively, the President of the United States, Title 1 of the 
National Industrial Recovery Act, and the Administrator of 
eaid Act. 

Sec. 5. Association. — The term " Association " as used herein, is 
defined to mean the Ornamental Molding, Carving and Turning 
Manufacturer's Association, an Illinois corporation not for profit. 

(208) 



209 

Article III — Hours 

Section 1. No employee in the industry shall be permitted to 
work in excess of an average of forty (40) hours per week during 
the period prior to April 1, 1934, and each six months' period there- 
after but not more than forty-five (45) hours in any one week, except 
as hereinafter provided. AH hours worked in excess of eight (8) 
in any one day shall be paid for at one and one-third times the 
regular hourly rate. 

(a) Firemen, engineers, and shipping crews shall be granted a 
tolerance of ten (10) percent in the hours specified above and 
therefore shall not be permitted to work in excess of an average of 
forty-four (44) hours per week during the period prior to April 1, 
1934, and each six months' period thereafter nor more than forty- 
nine and one half (491/0) hours in any one week. 

(b) Employees engaged in emergency maintenance and emergency 
repair work occasioned by breakdowns in production machinery or 
in work requiring the protection of life or property shall be permit- 
ted to work in excess or an average of forty (40) hours per week and 
may be employed more than forty-five (45) hours in any one week 
provided that all hours worked in excess of forty-five (45) hours in 
any one week or eight (8) hours in any one day shall be paid for at 
one and one third times the regular hourly rate, 

(c) Persons engaged in executive and/or supervisory capacity 
and designers who are earning $35.00 or more per week, and travel- 
ing salesmen shall not be subject to hourly limitations of this Article. 
Working foremen are not excepted from the maximum hours speci- 
fied above. 

(d) Watchmen and night firemen shall be permitted to work not 
to exceed an average of forty-eight hours per week in each two weeks' 
period. 

(e) Truck drivers operating on trips normally requiring more 
than eight hours, except in cases of unavoidable delay due to break- 
down or accident, shall be subject to hours of labor of a code here- 
after to be adopted for the appropriate divisions of the trudging 
industry. 

Sec. 2. No manufacturer availing himself of the averaging privi- 
lege may use the device of temporarily laying off of successive groups 
of workers. 

Sec. 3. No employer shall knowingly engage any employee for 
any time which, when totaled with that already performed with 
another employer or employers exceeds the maximum hours i^re- 
scribed in this Article. 

Sec. 4. Where a member of this industry is a partnership, associa- 
tion, or trust, which consists of more than one person, not more 
than one individual of such partnership, association, or trust, shall 
work as an operator in excess of the maximum hours of labor as 
hereinbefore provided. 

Article IV — Wages 

Section 1. Except as provided in Section 2 of this Article : 
(a) No employee in the States of Virginia, North Carolina, South 
Carolina, Tennessee, Kentucky, Georgia, Florida, Alabama, Missis- 



210 

sippi, Louisiana, Arkansas, Oklahoma, and Texas, and that part of 
the State of INIissouri south and west of an air line begmning at 
Thayer in Oregon County to Buffalo in Dallas County, thence 
directly west to the Kansas State line shall be paid at less than the 
rate of thirty cents per hour. 

(b) No other employee shall be paid at less than the rate of thirty- 
four cents per hour. 

Sec. 2. Apprentices for a period of three months, which appren- 
ticeship period shall be served not more than once in a lifetime of 
each apprentice, shall be paid at the rate of not less than 80 percent 
of the minimum wage rates prescribed in Section 1 of this Article. 
The total number of such apprentices at any one time shall not exceed 
five percent of the total number of factory workers employed by 
any employer. 

Sec. 3. Xo employee shall be paid a wage rate which will yield 
a less wage for a week of forty hours than employees were receiving 
for the same class of work for the normal working week of forty- 
eight hours or over immediately preceding June 16, 1933. 

Sec. 4. This article establishes a minimum rate of pay, regardless 
of whether an employee is compensated on a time rate, piecework, 
or other basis. 

Sec. 5. An employer shall make payment of all wages due in law- 
ful currency or by negotiable check therefor payable on demand. 
These wages shall be exempt from any paj-ments for pensions, insur- 
ance, or sick benefits other than those voluntarily paid by the wage- 
earners, or required by state laws. All employment 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. 

Article V — General Labor Provisions 

Section 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 with- 
in thirty (30) days after the effective date of this Code a list of such 
occupations. In an}^ 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 emploj^ee 
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 from joining, organizing, or assisting a labor organization 
of his own choosing. 



211 

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

Sec. 5. Within each State this Code shall not supersede any laws 
of such States imposino; more strin<^ent requirements on employers 
regulatino- the age of employees, wages, hourh, of work, or health, 
fire, or general working conditions than under this Code. 

Sec. 6. No employer shall reclassifj^ employees or duties of occupa- 
tions performed for the purpose of defeating the provisions of the 
Act or of this Code. 

Sec. 7. A person whose earning capacity is limited because of age 
or physical' or mental handicap may be employed on liglit work at a 
Avage 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 emplojanent at 
such wages and for such hours as shall be stated in the certificate. 
Each employer shall file with the Code Authority a list of all such 
persons employed by him. 

Sec. 8. Each employer shall post in cons]ucuous places accessible 
to employees full copies of th^s Code. 

Sec. 9. No employer shall avoid or evade the labor provisions of 
this Code by contracting his work to any person subject to labor 
regulations less stringent than those provided in this Code. 

Sec. 10. No member of the industry shall permit any product of 
the industry to be made in the home of any worker. 

Sec. 11. Female factory employees shall be permitted to work only 
between the hours of 7 A.M. to 7 P.M. 

Sec. 12. Female employees performing substantially the same work 
as male employees shall receive the same rate of pay as male 
employees. 

Sec. Ie3. 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 sub- 
mitted by the Code Authority to the Administrator for approval 
witliin six months after the effective date of this Code. 

Article YI — Organization, Powders, and Duties of the Code 

Authority 

Section 1. Organhation and Constitution. — Code Authority is 
hereby constituted to cooperate with the Administrator in the ad- 
ministration of this Code. 

Sec. 2. The Code Authority shall consist of not less than five (5) 
members of the industry complying with the provisions of Section 8 
of this Article, to be elected as follows : Four (4) members shall be 
elected by the Association; not less than one (1) member shall be a 
nonmember of the Association, if there be any such members of the 
industry, and shall be elected by such nonmembers complying or 
agreeing to comply with the provisions of Section 8 of this Article 
by personal vote or by proxy at an election conducted by the 
Association. 

Sec. 3. One alternate may be selected for each member of the 
Code Authority in the same manner as the respective members of 



212 

the Code Authority. Should any matter come before the Authority 
which specifically involves acts, conducts, or the interests of a com- 
pany 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. The Association 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 there- 
after 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 vacancj' in the membership of the Code Authority, a special 
meeting of the members of the industry for an election to fill the 
incomiDlete terms of such members shall be called. Notice of each 
election shall be sent to all members of the industry at least ten 
days in advance of such election, and voting at such election may 
be by person, by proxy, or by letter ballot. 

Sec. 5. In addition to membership as above provided, there may 
be three (3) members, without vote, to be appointed by the Ad- 
ministrator, to serve for terms of from six (6) to twelve (12) months 
from the date of appointment as the Administrator may designate. 
Such membei*s shall be given notice of and may sit at all meetings 
of the Code Authority. 

Sec. 6. Each trade or industrial association directly or indirectly 
participating in the selection or activites 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, 
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. 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 that any 
election of members of the Code Authority has not been conducted 
in a fair and equitable manner or does not in other respects comply 
with the provisions of the Act, may require an appropriate modifica- 
tion 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 sus- 
taining 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 



213 

Administrator, on tlie basis of voluino of business and/or such 
other factors as may be deemed e(iiiitable. 

Sec. 9. Memliertt. of Code Authorify not Partners. — Nothing con- 
tained in this Code shall ct)nstitute the members of the (\)tle Au- 
thority partners for any purpose. Nor shall any member of tiie 
Code Authority be liable in any manner to anyone for any act 
of any other member, oilicer, agent, or employee of the Code Au- 
thority. Nor shall any member of the Code Authority, exercising 
reasonable diligence in the conduct of his duties hereunder, be 
liable to any one for any action or omission to act under this Code, 
except for his own willful misfeasance or nonfeasance. 

Sec. 10. Forcers ami Duties of Code Authority. — The Code Au- 
thority shall have the following further powers and duties, the 
exercise of whicli 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. 

(1)) 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 gov- 
ernment 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. 

(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 
trade associations and agencies shall at all times be subject to and 
comply with the provisions hereof. 

(e) To make recommendations to the Administrator for the coor- 
dination of the administration of this Code with such other codes, 
if any, as may be related to the industry. 

(f) To secure 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 



214 

Administrator measures for industrial planning, including stabi- 
lization 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 such of its powers or duties as it iiiay 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) To cooperate with the Administrator in making investigations 
as to the functioning and observance of any provisions of this Code 
at its own instance or on complaint by any person affected, and to 
report same to the Administrator. 

(k) To issue rules, regulations, procedure, and interpretations, 
as may be necessary to effect the provisions of this Code. 

(1) In individual cases where the enforcement of this Code would 
create undue hardships, to modify, with the approval of the Ad- 
ministrator, the application of provisions of this Code except those 
which are mandatory under the Act and the provisions of Articles 
III, IV, and V thereof. 

(m) To investigate and inform the Administrator as to the impor- 
tation of competitive products into the United States in substantial 
quantities or in increasing ratio to domestic production on such 
terms or under such conditions as to render ineffective or seriously 
to endanger the maintenance of this Code, and as an agency for 
making complaint to the President on behalf of the Industry under 
the provisions of the Act, with respect thereto. 

(n) In order to assist in eliminating unfair competition, the Code 
Authority may establish classifications and quality standards for 
the products of the industry, subject to the approval of the Admin- 
istrator. No member of the industry shall falsely represent his 
products as complying with any classifications or standards so 
established. 

(o) To recommend to the Administrator the establishment of an 
Industrial Relations Board. 

Article VII — Costs 

Section 1. It is hereby declared to be the policy to be followed 
by all members of the industry to refrain from destructive price 
cutting. No member of the industry shall offer,- sell, or exchange, 
or agree to sell or exchange, products of the industry at a price or 
upon such terms or conditions that will result in the customer paying 
for such products less than their cost to the member of the industry, 
except : 

(a) To meet existing competition of lower cost producers on pro- 
ducts of the same or equivalent design, character, quality, or 
si^ecifications ; 

(b) Any member of the industry may sell at any price discontinued 
patterns (clo.se-outs) subject, however, to the right of the Code 
Authority to require reports of all such sales, and, wdth the approval 
of the Administrator, to adopt rules to regulate the sale of close-outs 
to prevent unfair trade practice. 

Sec. 2. The Code Authority is hereby empowered to establish 
uniform cost accounting methods for the industry, subject to the 



215 

approval of the Administrator. Immediately after approval by 
the Administrator information regardinjr the accounting system 
so approved shall be distributed to all members of the industry and 
shall thereafter be adhered to by all membei's of the industry. 

Sec. 3, For the purpose of encouragin^i; accurate asceitainment 
of costs, members of the industry may rejxjrt c<),sts of products of 
the industry to the Secretary of the association to be summarized 
and which may be made available in consolidated form to those 
contributing to the summary provided that the name of those 
reporting shall not be divulged to any other member of the industry. 

Article VIII — Publication or Prices 

Section 1. Each member of the Industry shall within thirty (30) 
days after the effectiveclate of this code file with a designated repre- 
sentative of the Code Authority a list of all his products and the 
prices thereof, including all quantity or other discounts, all terras 
of payment, freight allowances, prepayments, and equalizations. 
Such prices shall be available to any member of the industry or the 
purchasing trade on request to the designated representative of the 
Code Authority. 

Sec. 2. A member of the industry may make any change in such 
price list on file with the designated representative of the Code Au- 
thority to be effective within not more than five (5) days after such 
price list shall have been filed with the designated representative of 
the Code Authority. 

Sec. 3.^ The sale of any product by any member of the industry at 
other than the effective price or terms of such member for such prod- 
uct on file with the designated representative of the Code Authority 
at the time of such sale shall be a violation of this code. 

Article IX — Trade Practices 

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

Section 1. M isrepresentation or False or MisJeading Advertis- 
ing. — The making, or causing, or knowingly permitting to be made or 
published any false, materially inaccurate, or deceptive statement by 
way of advertisement or otherwise, whether concerning the grade, 
quality, quantity, substance, character, nature, origin, size, finish, or 
preparation of any product of the industry, or the credit terms, 
values, policies, or services of any member of the industry, or other- 
wise, having the tendency or capacity to mislead or deceive customers 
or prospective customers. 

Sec. 2. Secret and Discriminatory Rehates. — The making of any 
secret or discriminatory allowance, rebate, refund, commission, 
credit, or unearned discount, whether in the form of money or other- 
wise, or the extension to certain purchasers of secret or discrimina- 
tory services or privileges not extended to all purchasers on like 
terms and conditions. 

Sec. 3. Giving Gi-atuities or Reicards to Employees. — The gi\'ing, 
permitting to be given, or directly offering to give, anything of value 

* See paragraph 2 of order approving this Code. 



216 

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 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. 

Sec. 4. Copying of Designs. — Knowingly copying and/or repro- 
ducing any essentially original new design or new pattern of any 
product of the industry, or knowingly appropriating the essential 
selling features of any new design or new pattern of another member 
of the industry, within four (4) years of the introduction thereof. 
This section shall not supersede any State or Federal Law but shall 
be supplemental thereto. 

Sec. 5. False Invoicing. — The withholding from, or insertion in, 
any invoice of any statement making the invoice inaccurate in any 
material particular, or which misrepresents the price or character of 
the material content of the merchandise billed. 

Sec. 6. Terms of Sale. — Selling on more favorable terms than net 
30 days or 2% cash discount within 10 days from date of shipment; 
provided that where it is the practice of a buyer to make monthly 
settlement of all invoices, the member of the industry may allow the 
deduction of the cash discount if pajanent is made not later than the 
10th of the calendar month following dates of shipment. 

Sec. 7. Interference With Another^s Contracts. — No member of the 
industry shall induce or attempt to induce the breach of an existing 
contract betAveen a competitor and his employee or customer or source 
of supply. 

Sec. 8. Shipmetit of C ominodities on Consignment. — No member 
of the industry shall ship commodities on consignment, except to 
meet special conditions or circumstances approved by the Code Au- 
thority to meet special conditions. 

Article X — New Designs and Patterns 

Section 1. Each member of the industry may register with the 
Secretary of the Association the new designs and the new patterns 
which are original and distinctive, and which are developed by such 
manufacturer after the effective date of this Code. 

Article XI — Monopolies 

Section l.No provisions of this Code shall be interpreted or ap- 
plied in such manner as to promote or permit monopolies or monop- 
olistic practices or to eliminate, oppress, or discriminate against 
small enterprises. 

Article XII — Modifications 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with tlie 
provisions of subsection (b) of Section 10 of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, 



217 

approval, license, rule, oi- re<j;ulati<m issued iiiider Title I of said Act 
and specifically, but without limitation, to the right of the President 
to cancel or modify his a])})r()val ol' 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 upon application to the Administrator by the Code Au- 
thority after such notice and hearinp^ as the Administrator shall 
si:)ecify, such modification to become effective upon approval by the 
President. 

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 
services increase as rapidly as w^ages, it is recognized that price in- 
creases should be delayed and that, when made, the same should, so 
far as reasonably possible, be limited to actual increase in the seller's 
costs. 

Article XIV — Effective Date and Ter^iination 

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 resolution, 
declare that the emergency recognized by Section 1 of the National 
Recovery Act has ended. 

Approved Code No. 260. 
Registrj- No. 315-02. 

o 



Approved Code No, 261 
CODE OF FAIR COMPETITION 

FOR THE 

FOUNDRY SUPPLY INDUSTRY 

As Approved on February 5, 1934 



OKDER 



AprEOA'ixG Code or Fair Competition for the Foundry Supply 

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 Foundry Supply 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 the provisions of Article VII (Section 2), insofar as they 
prescribe a waiting period between the filing with the Code Author- 
ity 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 sixty days from the effective date of 
this Code or after the completion of a study of open price associa- 
tions now being conducted by the National Recovery Administration. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
W. A. Harriman, 

Division Adm in istrator. 

Washington. D.C, 

Fehimary 5, 1934. 

38145° 376-6 34 (219) 



REPOKT TO THE PRESIDENT 

The President, 

The White House. 
Sm: This is a report on the Code of Fair Competition for the 
Foundry Supply Industry, the hearing having been conducted 
thereon in Washington, D.C., on December 28, 1933, in accordance 
with the provisions of the National Industrial Recovery Act. 

RESUME OF CODE AS TO WAGES AND HOURS 

This Code provides that 8 hours shall constitute the normal number 
of working hours per day, 40 hours the normal number of working 
hours per week, except that employees may work not exceeding 48 
hours a week for four weeks in any six months' period. These pro- 
visions are applicable to all employees except traveling salesmen, 
outside service men and watchmen, who may be permitted to work 
48 hours per week, and persons employed in managerial, executive, 
or supervisory capacity receiving not less than $35.00 per week. It 
provides further that no employee shall be permitted to work more 
than 6 days in any calendar week. 

The rates of pay provided for production labor are 400 per hour 
for both men and women. Time and one half will be paid produc- 
tion employees for hours worked in excess of the number of hours 
specified herein above. 

All other employees will be paid at not less than the following 
rates : 

Fifteen dollars ($15.00) per week in any city of over 500,000 
population or in an immediate trade area of such city; $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 or 
town of less than 250,000 population. Nothing in this provision 
shall be interpreted to mean that part-time workers shall be com- 
pensated on a full-time basis. 

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

Child Labor is prohibited and no person under 18 years of age 
shall be employed in a hazardous occupation. 

GENERAL STATEMENT 

The Foundry Su^oply Industry as defined in the Code includes the 
manufacture and sale of foundry facings and supplies ; in particular 
the commodities commonly known in the Industry as foundry plum- 
bago, sea coal, parting, core wash, core paste, piteh core compound, 
as well as other forms and description of foundry facings and miscel- 
laneous foundry suj^plies, and its customers are, therefore, confined 
to the various metal foundries of the country. 

(220) 



221 

The investment in the Industry is approximately $2,500,000 esti- 
mated value and the number of wage earners in normal times about 
400 people, with an estimated annual pay roll of $550,000. 

In 1929, which is considered a normal year, operations were at a 
rate of approximately 60% of capacity, with a value of production 
of about $3,028,000. Operations in 1930 were about 37% of capacity ; 
in 1931 about 35% of capacity; in 1932 about 19% of capacity; in 
1933 about 18%. of capacity. 

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. 

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 wall 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 cajjacity 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 
employees, 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 oection 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, 

Administrates, 
February 5, 1934. 



CODE OF FAIR COMPETITION FOE THE FOUNDRY 
SUPPLY INDUSTRY 

Article I — Purposes 

To effectuat-e the policies of Title I of the National Industrial 
Recovery Act, the following provisions are submitted as a Code of 
Fair Competition for the Foundry Supply Industry, and upon ap- 
proval by the President shall be the standard of fair competition for 
such industry and shall be binding upon every member thereof. 

Article II — Definitions 

The term " Foundry Supply Industry " as used herein includes 
the industry engaged in the manufacture and sale of foundry facings 
and supplies, including the commodities commonly known as foundry 
plumbago, seacoal, parting, core wash, core paste, pitch core com- 
pound, and other forms and descriptions of foundry facings and 
miscellaneous foundry supplies, and such related branches and sub- 
divisions of said industry 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 " 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 Adminis- 
trator thereof. 

Article III — Hours 

1. Employees shall not be required or permitted to work hours in 
excess or the limits prescribed in the following schedule : 

/Schedule of Working Hours. — (a) Executives and employees en- 
gaged in a supervisory capacity receiving $35.00 or more per week: 
No limitation. 

^b) Outside salesmen : No limitation. 

(c) Repair crews, engineers, shipping clerks, and any employees 
enga<;ed in emergency maintenance or repair work : No limitation, 
provided that at least one and one half times his normal rate shall 
be paid any such employee for hours worked in excess of 9 hours 
in any one day or 44 hours in any one week. 

(d) Watchmen: 48 hours in any one week. 

(222) 



223 

(e) Clerical and office employees: 9 hours in any one clay (pro- 
vided that the normal work day shall not exceed 8 hours) and 40 
hours in any one week, and for not to exceed 4 weeks in any period 
of six months 48 hours in any one week. 

(f) All other employees including factory, mill, and mechanical 
workers and artisans : 40 hours in any one week, and for not to exceed 
4 weeks in any period of six months 48 hours in any one week. 

2. No employee shall be permitted to work more than 6 days in any 
calendar week. 

Article IV — Wages 

1. No factory, mill, mechanical worker, or artisan shall be paid at 
less than the rate of 40(^ per hour. 

2. No other employee shall be paid at less than the following 
rates : not less than fifteen dollars ($15.00) per week in any city of 
over 500,000 population or in the immediate trade area of such city ; 
nor less than fourteen dollars and fifty cents ($14.50) in any city of 
between 250,000 and 500,000 population or in the immediate trade 
area of such city; nor less than fourteen dollars ($14.00) per week 
in any city or town of less than 250,000 population. Nothing in this 
section shall be interpreted to mean that part time workers shall be 
compensated on a full weekly basis. 

3. This article establishes minimum rates of pay, regardless of 
whether an employee is comi3ensated on a time-rate, piecework, or 
other basis. 

4. The weekly compensation for full time employment now in ex- 
cess of the minimum wages hereby established shall not be reduced 
(notwithstanding that the hours worked in such employment may be 
hereby reduced) but this provision shall not require that hourly 
rates of pay shall be increased thereby more than 20%, and the i^ay 
for such employment shall be increased by an equitable readjustment 
of all pay schedules where the adjustment of pay schedules herein 
provided has not already been made in compliance with the Presi- 
dent's Reemployment Agi-eement. Within 60 days after the effective 
date of this Code each member of the industry shall report to the 
Code Authority the action taken under this section since June 16, 
1933. 

5. 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 days after the effective date of this Code file with the Ad- 
ministrator a description of all occupations in the industry in which 
both men and women are employed. 

6. This Article establishes rates of pay which shall be exempt from 
any charges, fines, and/or deduction by the employer, except such 
deductions as are voluntarily authorized by the employee. 

7. An emploj'^er shall make payment of all wages due in lawful 
currency or by negotiable check therefor, payable on demand. These 
w^ages shall be exempt from any payments for pensions, insurance, 
or sick benefits other than those voluntarily paid by the wage earn- 
ers, or required by State or Federal laws. Wages shall be paid at 



224 

I 
least at the end of every two- week period, and salaries at least at the 
end of every month. No employer shall withhold wages. 

8. 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 con- 
nection with the discharge of duties of such employment. 

9. No employee shall be dismissed for making a complaint of, 
or giving evidence with respect to a violation of this Code, provided 
said complaint or evidence is presented in good faith. 

Article V — General Labor Provisions 

1. No pei-son under 16 j'^ears of age shall be employed in the in- 
dustry, nor anyone under 18 years of age at operations or occupa- 
tions hazardous in nature or detrimental to health. The Code Au- 
thority shall submit to the Administrator within sixty 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 pro- 
vision 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 emplo3^ee is of the required 

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 a^^ents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

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

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

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

4. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees or indulge in any other subterfuge 
so as to defeat the purposes of this Act. 

5. Each employer shall post in conspicuous places full copies of 
the labor provisions of this Code. 

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

Article VI — Administration 

To further effectuate the policies of the Act, a Code Authority is 
hereby constituted to cooperate with the Administrator in the 
administration of this Code. 



I 



225 

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of 7 persons hereinafter to 
be referred to as the industry members of the Code Authority, to- 
getlier with such person or persons, not to exceed 3, as may be 
appointed by the Administrator. 

(b) The industry members of the Code Authority shall include the 
5 members of the Board of Directors of the Foundry Supply Manu- 
facturers Association elected as provided in the Constitution and 
By-Laws of said Association, and in addition, 2 persons who shall be 
elected at a meeting of the industry to be called by the Foundry 
Supply Manufacturers Association and to be held on or before thirty 
days after the effective date of this Code. Notice of such meeting 
shall be given to each member of the industry not less than ten days 
before the day of such meeting. Each member of the industry who 
shall have assented to and complied with the requirements of this 
Code shall be entitled to one vote in the election of industry mem- 
bers of the Code Authority and may cast such vote either by person 
or by proxy. The Administrator, in his discretion, may appoint not 
more than 3 additional members of the Code Authority, without 
vote, to represent the Administrator or such groups or interests as 
may be agreed upon. 

(c) The Foundry Supply 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 with 
such other information as to membership, organization, and activities 
as the Administrator may deem necessary to effectuate the purposes 
of the Act. 

(d) In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with the 
provisions of the Act, the Administrator may provide such hearings 
as he may deem proper ; and thereafter if he shall find that 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 Authorit}'^ shall have the following duties and powers 
to the extent permitted by the Act, subject to the right of the Admin- 
istrator on review to disapprove or modify any action taken by the 
Code Authority. 

(a) It may employ as its administrative staff the administrative 
staff of the Foundry Supply Manufacturers Association. 

(b) It shall determine the amount of the expenses necessary for 
the administration of this Code. 

(c) It shall, by agency of its administrative staff, render an in- 
voice monthly to each member of the industry who shall have ac- 
cepted the benefit of the services of the Code Authority or otherwise 
assented to this Code, for such member's reasonable share of the 
expenses of administering the Code, and each such member of the 
industry shall be required to pay the amount so invoiced within 30 
days after the date of invoice. 

(d) It may require, and authorize its administrative staff to col- 
lect, from every member of the industry such reports, statistics, and 



226 

other information as may be necessary to carry out the provisions 
of the Act, in such detail and at such intervals as it may prescribe. 

(e) It may employ its administrative staff to make such audits of 
records of members of the industry as may be necessary to carry out 
the provisions of the Act. 

(f) Reports and statistics collected by, and audits made by, the 
administrative staff of the Code Authority shall be kept confidential 
and the data of one member of the industry shall not be revealed 
to any other member of the industry or to any member or members 
of the Code Authority except in composite form or except as other- 
wise provided in the Act or as required by the Administrator. 

(g) On complaint of interested parties or upon its own initiative 
it shall make such inquiry and investigation as to the operation of 
the Code as may be necessary and shall report the same to the 
Administrator. 

(h) It may formulate and recommend to the Administrator for 
his approval such measures as may be appropriate to prevent un- 
sound, unfair, or destructive competitive practices or prices in the 
industry which interfere with the effectuation of the policy of the 
Act. 

(i) It may formulate and recommend to the Administrator uni- 
form credit practices which shall be observed by all members of the 
industry when approved by the Administrator. 

(j) 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 ex^Denses 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 of volume of business and/or such other factors 
as may be equitable to be taken into consideration. 

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

Article VII — Accounting and Selling 

1. The Code Authority shall as soon as practicable, formulate a 
standard method of costing and accounting for the industry and 
submit the same to the Administrator, When it shall have been 
approved by the Administrator, the Code Authority shall furnish 
to each member of the industry a complete description of such 
standard method of accounting and costing. 

2. The Code Authority shall fix a date on which the open-price 
])lan of selling such standard product or products of the indus- 
try as it shall specify shall be put into effect. Notice of such date 
shall be announced to all known members of the industry who manu- 
facture and/or sell such products not less than 30 days prior to the 
date so fixed. At least 10 days prior to such date every such mem- 
ber of the industry shall file with the Code Authority schedules, in 
such form and detail as the Code Authority shall prescribe subject 



227 

to the review and disapproval of the Administrator, of prices 
(inchiding terms and conditions of sale, discounts, conuTiissions to 
jobbers, freight charges, and freight allowances) of all such products 
offered for sale by such member. All such original schedules shall 
become effective on the date fixed by the Code Authority as provided 
hereinabove. A revised schedule or a new schedule may be filed by 
a member with the Code Authority at any time. Any such revised 
schedule or new schedule shall become eifective on the fifth day 
after the day on which the receipt of such schedule shall have been 
recorded in the office of the Code Authority. When any member 
shall file any original schedule or any revised schedule or any new 
schedule, any other member may also file a revision of his own 
schedule, and if such other member shall so desire and state therein, 
the same shall be effective as of the same date as such first mentioned 
schedule. The Code Authority may promptly furnish to all mem- 
bers of the industry, who manufacture and/or sell any particular 
product, copies of all schedules, revised schedules, or new schedules 
which pertain to such product, and upon request shall furni.sh, at 
cost, to any other person concerned, copies of such schedules.^ 

3. After a standard method of accounting and costing shall have 
been formulated by the Code Authority and approved by the Ad- 
ministrator, a member of the industry shall submit to the Code 
Authority a statement to accompany each schedule of prices and 
conditions of sale or revision thereof filed by such member, setting 
forth whether such schedule is justified by such member's cost or is 
justified by the previously filed schedule of another member of the 
industry. 

(a) No schedule justified by the cost of the member filing said 
schedule shall become effective if the price therein of any product of 
the industry (including terms and conditions of sale, discounts, com- 
missions to jobbers, freight charges, and freight allowances) is less 
than the cost of such product to such member as determined in 
accordance with the aforesaid standard method of accounting and 
costing. 

(b) No schedule justified by a schedule previously filed by another 
member of the industry shall become effective if the price therein of 
any product of the industry (including terms and conditions of sale, 
discounts, commissions to jobbers, freight charges, and freight allow- 
ances) is less than the lowest justified price of the same product 
appearing in any schedule previously filed by any other member of 
the industry and still in effect. No schedule justified by a schedule 
previously filed by another member of the industry shall remain in 
effect after such last named justifying schedule shall have been 
withdrawn, cancelled, or revised upward. 

(c) If any member of the industry shall have failed to install and 
to maintain the aforesaid standard method of accounting and cost- 
ing, then such member shall not file any schedule of prices (including 
terms and conditions of sale, discounts, commissions to jobbers, 
freight charges, and freight allowances) in which the price of any 
product is less than the lowest justified price of the same product 
appearing in any schedule previously filed by any other member of 
the industry and still in effect. 

^ See paragraph 2 of order approving this Code. 



228 

4. Except in fulfillment of bona fide contracts existing on the effec- 
tive date of this Code and which shall be reported to and recorded 
by the administrative staff of the Code Authority, no member of the 
industry shall sell or offer for sale for domestic consumption any 
standard product of the industiy described and listed in the latest 
schedule of prices filed by him with the Code Authority as herein- 
before provided at a price or prices other than or upon terms or 
conditions other than stated in such schedule. 

5. The Code Authority may at any time suspend the open-price 
plan of selling either in its entirety or insofar as it applies to any 
specific product or products of the industry. 

Article VIII — Unfair Trade Practices 

For all purposes of the Code the acts described in this Article shall 
constitute unfair practices. Any member of the industry who shall 
directl}^ or indirectly through any oificer, employee, agent, or repre- 
sentative, use, employ, or permit to be employed, any of such unfair 
practices shall be guilty of a violation of the Code. 

(1) False Marking or 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 pennitting 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. 

(3) C ommercial Bribery. — The 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 represen- 
tative 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 briber}'^ as 
hereinabove defined. 

(4) Interference with C ontractual 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 w^ith or obstructing the performance of any such con- 
tractual duties or services. 

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



229 

(6) Giving of Prizes, Premiu7ns, or Gifts. — The offering or giving 
of prizes, premiums, or gifts in connection with the sale of products, 
or as an inducement thereto, by any scheme which involves lottery, 
misrepresentation, or fraud. 

(7) Defamation. — The defamation of competitors by falsely im- 
puting to them dishonorable conduct, inability to perform contracts, 
questionable credit standing, or by other false representations or by 
the false disj^aragement of the grade or quality of their goods. 

(8) 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. 

(9) Espionage of Co7npetito7's. — 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. 

(10) Imitation of Trade Marks or Trade Names. — Imitation of 
the trade mark or trade name of a competitor. 

(11) Consignments to Consumers. — Consigning goods to con- 
sumers to be paid for as used. 

(12) FaJse Dating of Invoices. — Dating invoices as of any other 
date than the day of shipment. 

Article IX — MomncATioN 

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 Pres- 
ident 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 modifications to be based upon api^lication to the Administra- 
tor and such notice of hearing as he shall specify, and to become 
effective on approval of the Administrator. 

Article X — Effective Date 

This Code shall become effective on the 15th day ^after its ap- 
proval by the President. 



Approved Code No. 261. 
Registry No. 1112-01. 



o 



Approved Code No, 262 
CODE OF FAIR COMPETITION 

FOR THE 

SHOULDER PAD MANUFACTURING INDUSTRY 

As Approved on February 5, 1934 



OKDEE 



Approving Code of Fair Competition for the Shoulder Pad 
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 Shoulder Pad 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 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 Industi'ial Recovein/. 
Approval recommended: 
A. D. Whiteside, 

Division Administrator. 
Washington, D.C, 

February 5, lOSJf., 

38143° 376-7 34 (231) 



REPOET TO THE PRESIDENT 

The President, 

The White House. 
Sir : The Public Hearing on the Code of Fair Competition for the 
Shoulder Pad Manufacturing Industry, as proposed by the National 
Association of Shoulder Pad Manufacturers, Inc., was conducted in 
Room 2062, Department of Commerce Building, Washington, D.C., 
on October 31, 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 authoriza- 
tion 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 of 
shoulder pads and sleeve heads made from several partly processed 
materials, namely, carded and/or garnetted cliina cotton, cotton 
waste, wool waste, waddings, and muslin stitched together to form a 
padding or mattressing for building up of the shoulders, necks, and 
sleeves of men's and women's coats. The articles enumerated herein, 
when made in clothing factories and used in connection with the 
garments manufactured in such factories, are exempted from the 
provisions of this Code. 

The Shoulder Pad Manufacturing Industry is a " supply " industry 
selling to the manufacturers of men's and women's coats. The defini- 
tion limits application of the Code to the shoulder-pad manufacturers 
whose product is used by and sold to the clothing manufacturing 
trades. 

The submitting association represents 19 of the approximately 22 
shoulder pad manufacturers in the United States and 93% of the 
industry in volume of business and number of employees. The ag- 
gregate annual sales in 1932 was $1,452,000; the aggregate invested 
capital in 1932 was $963,000, and the number of employees in 1932 
was 558. 

RESUME or THE CODE 

Article I gives the purpose of the Code. 

Article II sets forth certain definitions. 

Article III contains the maximum hour provisions of the Code and 
restricts the number of shifts of employees in any one day to one. 

Article IV establishes the minimum wage for all employees em- 
ployed in the industry. 

(232) 



233 

Article V sets forth the general labor provisions. 

Article VI provides for the organization of the Code Authority 
and defines its powers. 

Article VII defines trade practices which are unfair and shall be 
eliminated. 

Article VIII provides for the modification of the Code in accord- 
ance with Section 10 (b) of the National Industrial Eecovery Act. 

Article IX states that this Code shall not permit monopolies. 

Article X fixes the effective date as the tenth day after its 
approval by the Administrator. 

LABOR PROVISIONS 

No part of the industry is unionized. The testimony brought out 
at the Public Hearing showed uniformly satisfactory labor relations. 
Previous to the President's Reemployment Agreement, according to 
testimony presented at the hearing, the wages paid in the Shoulder 
Pad Industry were considerably lower than those provided in this 
Code. The wage and hour provisions are closely related to those 
of the Men's Clothing Code and meet with the approval of the 
Labor Advisory Board. 

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 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 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 i^ro visions 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. 



234 

(e) Tlie 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. 
February 5, 1934. 



CODE OF FAIE COMPETITION FOR THE SHOULDER PAD 
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 Shoulder Pad Manufacturing Industry 
and shall be the standards of fair competition for this industry and 
shall be binding upon every member thereof. 

Article II — Detinitigiss 

1. The term " industry " as used herein includes the manufacture 
of shoulder pads and sleeve heads, made from several partly proc- 
essed materials, namely, carded and/or garnetted china cotton, 
cotton waste, wool waste, waddings and muslins, stitched together 
to form a padding or mattressing for building up the shoulders, 
necks, and sleeves of men's and women's coats. The article enu- 
merated herein when made in clothing factories and used in connec- 
tion 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 " apprentice " as used herein shall mean any employee 
performing a machine operation who has not been employed in the 
industry for a full period of ten (10) weeks. 

Article III — Hours of Labor 

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

2. The provisions of this Article shall not apply to employees 
engaged in an executive, managerial, or supervisory capacity and 
receiving $35 per week or more and who are not in any way engaged 
in productive labor ; nor to outside salesman. 

(235) 



236 

3. Office employees, chauffeurs, shipping and stock clerks, and 
outside errand boys shall not be permitted to work in excess of 
forty (40) hours in any one week. 

4. The maximum number of hours of overtime which any em- 
ployee may work in any six (6) months' period shall be twenty- 
five (25) hours. In no event shall any employee be permitted to 
work more than one (1) hour overtime per da}^, or more than five 
(5) hours overtime per week. All overtime shall be paid for at 
a rate of not less than time and one third the normal wage. 

5. No overtime in addition to that hei'ein provided for shall be 
permitted, except upon the recommendation of the Code Authority 
and approval of the Administrator and under such conditions and 
upon such terms as the Administrator may 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 max- 
imum permitted herein. 

7. No home work shall be permitted by members of the industry. 

8. No member of the industry shall operate more than one (1) 
shift of employees in any one day. 

Abticle IV — Rates of Pat 

1. No employee shall be paid at less than the rate of thirteen (13) 
dollars per week, except as hereinafter provided. 

2. No apprentice shall be paid at less than 80% of the minimum 
wage per week of 36 hours for the first five weeks of employment, 
and not less than 90% of the minimum wage per week of 36 hours 
for the next five weeks of employment, and thereafter at not less than 
the regular minimimi rate otherwise provided in this Code, provided, 
however, that at no time shall the total number of apprentices em- 
ployed by any one employer exceed in number 10% of the total num- 
ber of machine operators of such employer. Each employer shall be 
entitled to at least one apprentice. 

3. 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 effective date of this Code. 

The Code Authority shall have the power to investigate and adjust 
complaints arising out of this provision. The provisions of this 
section shall be subject to review by the Administrator. 

4. No employee shall be paid less than the minimum wages set 
forth in this Article, regardless of whether such employee is com- 
pensated on a time-rate or a piece-rate basis. 

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 
employees in the same factory receive for similar work, but in no 



237 

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, wage rate, length of service, and reason for exception. 
This list shall be revised up to date once each month and trans- 
mitted 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 Aveek of July 15, 1933. 

(d) The Code Authority shall have the ri^ht to investigate and 
disallow any such claims for exception subject to review by the 
Administrator upon appeal by an 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 Prowsions 

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 March 1, 1934, a list of such 
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 by the authority in such State empowered to 
issue employment or age certificates or pei'mits, 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 seekiiig employment sliall be required 
as a condition of employment to join any company union or to re- 
frain from joining, organizing, or assisting a labor organization of 
his own choosing, and 

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

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

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees or engage in any subterfuge so as 
to defeat the purposes of the Act or of this Code. 

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



238 
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 three or more members 
who shall be selected by the Board of Directors of the National 
Association of Shoulder Pad Manufacturers and of such additional 
members, without vote and without expense to the Industry, not 
to exceed three (3), as the Administrator may appoint to represent 
such groups or interests or such governmental agencies as he may 
designate. 

(b) 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 anj^ 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. 

(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 to 
change from time to time the method of selection and to change the 
organizations selecting the members of the Code Authority, in order 
that it shall be truly representative of the Industry. 

(e) If the Admmistrator 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 Admin- 
istrator. 

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

(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 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 investigation and after such hear- 
ing as it may deem proper, to make recommendations thereon to the 
proper authorities 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, 



239 

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 the 
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 ade- 
quate 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 anyone of any existing obligation to furnish reports 
to government agencies. 

(e) 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 provi- 
sions of this Code, and that nothing herein shall relieve the Code 
Authority of its responsibility for the administration of this Code. 

(f ) To coordinate the administration of this Code with such other 
codes, if any, as may be related to the Shoulder Pad Industry, or any 
subdivision thereof, with a view to promoting joint and harmonious 
action upon matters of conunon interest. 

(g) To make surveys, to compile reports, to collect statistics and 
trade information, to investigate unfair trade practices, to make rec- 
ommendations for the adoption of 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 appor- 
tioning in the Industry the Cost of administering this Code. Money 
raised in any manner shall not exceed in amount such reasonable 
cost. 

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

(j) The Code Authority shall have the power to investigate and 
adopt a uniform system of cost accounting for products manufactured 
by the Industry which when so adopted shall become the standard 
for the Industry; except that cost accounting systems now used by 
members of the Industry, which are substantially the same as the 
system recommended or which reflect the same basis of established 
cost, may be retained. The provisions of this section shall be subject 
to the approval of the Administrator. 

3. Members of the Industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority and 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 of its administration shall be determined 
by the Code Authority subject to the approval of the Administrator 



240 

on the basis of the volume of business and/or such other factors 
as may be deemed equitable to be taken into consideration. 

4. The Code Authority shall Andy 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, 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 or branding 
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. MisrepTesentation or False or Misleading Advertising. — The 
making of 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 industry or the credit terms, 
values, policies, or services of any member of the industry, or other- 
wise, having the tendency or capacity to mislead or deceive cus- 
tomers or prospective customers. 

3. C miinierclal Bribery. — No member of the Industry shall give, 
permit to be given, or otfer to give anything of value for the purpose 
of influencing or rewarding the action of any employee, agent, or 
representative of another in relation to the business of the employer 
of such employee, the principal of such agent, or the represented 
party, without the knowledge of such employer, principal, or party. 
Commercial bribery provisions shall not be construed to prohibit a 
general distribution of articles commonly used for advertising, ex- 
cept so far as such articles are actually used for commercial bribery 
as hereinabove defined. 

4. Interference with Contractv/il Melations. — 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. 

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

6. Giving of Prizes., Premiums., or Gifts. — The offering or giving 
of prizes, premiums, or gifts in connection with the sal© of products, 
or as inducement thereto, by any bcheme w^hich involves lottery, 
misrepresentation, or fraud. 



241 

7. Dcfawafion. — The defamation of competitors by falsely im- 
piitinfj to them dishonorable conduct, inability to perform contracts, 
questionable credit standing, or by other false representations or 
by the false disparagement of the grade or quality of their goods. 

8. Threats of Litigation. — The publishing or circularizing of 
threats or suits for infringement of patents or trade marks or of 
any other legal proceedings not in good faith, with tlie tendency or 
effect of harassing competitors or intimidating their customers. 

9. Espionage of Competitors. — Securing confidential information 
concerning the business of a competitor by a false or misleading 
statement or representation, by a false impersonation of one in 
authority, by bribery, or by any other unfair method. 

10. Selling Below Cost. — No member of the industry shall sell 
any article at a price below his individual cost except as hereinafter 
provided. Any member of the industry may meet the ]n-ioe 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 pui-pose, costs shall be determined by the 
Uniform Cost Accounting System provided for in the foregoing 
Article VI, Section 2, Subsection (j). 

11. 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. 

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

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

Article IX — Monopolies 

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

Article X — Effective Date 

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

Approved Code No. 262. 
Registry No. 299^25B, 

o 



I 



Approved Code No. 263 
CODE OF FAIR COMPETITION 

FOR THE 

MACHINE KNIFE AND ALLIED STEEL PRODUCTS 
MANUFACTURING INDUSTRY 

As Approved on February 6, 1934 



ORDER 



Approving Code of Fair Competition for the Machine Knife and 
Allied Steel Products 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 Machine Knife and Allied Steel Products 
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 ; provided, however, 
that the provisions of Article VIII, insofar as they prescribe a wait- 
ing period between the filing with the Code Authority and the effec- 
tive 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 days from the effective date of this 
Code or after the completioin of a study of open price associations 
now being conducted by the National Recovery Administration. 

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval Recommended : 
W. A. Harriman, 

Division Administrator. 

Washington, D.C, « 

Fehmary 6, 1934-. 

38563° 376-27 34 (243) 



REPORT TO THE PRESIDENT 

The President, 

The White H(mse. 
Sir: This is a report on the Code of Fair Competition for the 
Machine Knife and Allied Steel Products Manufacturing Industry, 
the hearing having been held in Washington on the 11th day or 
December in accordance with the provisions of the National Indus- 
trial Recovery Act. 

PR0%1SI0NS AS TO HOURS AND WAGES 

Employment is limited to 8 hours per daj^ and 40 hours per 
week with the exception of those employees engaged in emergency 
maintenance and/or repair Avork or on emergencies occasioned by 
the necessity for services of specially skilled employees who cannot 
be replaced. To provide for seasonal demands overtime is allowed 
to the extent of 8 hours per week for 8 weeks in any 26-week period. 

Overtime in excess of 8 hours in any 24-hour period or in excess of 
40 hours in any 7-day period will be paid for at one and one half 
times the normal rate. 

Minimum wages of 40 cents per hour for males and females are 
established. Female employees performing substantially the same 
work as male employees will receive the same rate of pay as male 
employees and where they displace men they Avill receive the same 
rate of earnings as men. 

Clerical employees shall not be paid less than $15.00 per week. 

ECONOMIC EFFECT OF THE CODE 

In April 1933 this Industry, which comprises apj)roximately 30 
firms, employed about 350 persons. Since the adoption of the 40- 
hour week as provided in this Code, employment has increased to 
634 persons in September 1933 or an increase of 52%. 

The invested capital of the Industry is about $3,000,000 and the 
average annual value of its products over the past five years is 
approximately $3,000,000. 

iTNDINGS 

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 

(244) 



245 

commerce which tend to dhninish the amount thereof and will 
provide for the general welfare b}'' promoting the organization of 
industry for the purpose of cooperative action among the trade 
grouj)s, by inducing and maintaining united action of labor and 
management under adequate jjovernmental 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 powder, by re- 
ducing and relieving unemplo3'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 pro\asions 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 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, this Code has been approved by me. 
Respectfully, 

Hugh S. JonNsoN', 

Administrator. 
February 6, 1934. 



CODE OF FAIR COMPETITION FOR THE MACHINE 
KNIFE AND ALLIED STEEL PRODUCTS MANUFAC- 
TURING 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 Machine Knife and Allied Steel Prod- 
ucts Manufacturing Industry, and shall be the standards of fair 
competition for such Industrj^ and shall be binding upon every 
member thereof. 

Article II — Monopoly and Repression 

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

Article III — Definiitons 

Section 1. The term " Machine Knife and Allied Steel Products 
Manufactui'ing Industrj^ " as used herein is defined to mean the 
manufacture for sale of machine knives and allied steel products, 
used as machine parts and primarily for such purposes as cutting 
and scraping various materials. 

Sec. 2. The term "Association " as used herein is defined to mean 
the Machine Knife Association of the United States, 

Sec. 3. The term " Membership ■' as used herein is defined to mean 
members of the Machine Knife Association of the United States. 

Sec. 4. 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. 

Sec. 5. The term "Apprentice " as used herein is any employee 
bound by a legal contract to learn a trade. 

Sec. 6. The term " Emplover " as used herein includes anyone 
by whom any such employee is compensated or employed. 

Sec. 7. The term " Member of the Industry " as used herein in- 
cludes anyone engaged in the Industry as above defined, either as an 
employer or on his own behalf. 

Sec.*^ 8. 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. 

(246) 



247 
Article IV — Working Hours 

Section 1. Maxlvmin Ilcnirs. — No employee shall be permitted 
to work in excess of forty (40) hours in any one (1) week or eight 
(8) hours in any twenty-four (24) hour period beginning at mid- 
night, except as herein otherwise provided. 

Sec. 2, Exceptions as to hours — Executives and salesmen. — (a) 
The provisions of Section 1 above shall not apply to either execu- 
tives and supervisors and their immediate assistants receiving thirty- 
five ($35,00) dollars weekly or more, or to traveling salesmen. 

(b) Emergency overtime. — The maximum hours fixed in the fore- 
going section shall not apply to any employee on emergency mainte- 
nance or emergency repair work involving breakdowns or protection 
of life or property, or on emergencies occasioned by the necessity for 
services of specially skilled employees which cannot be cared for 
by the emiDloyment of additional men. But in any such special case 
at least one and one half times the normal rate shall be paid for hours 
worked in excess of the maximum provided in Section 1 above. 

(c) Ordinary overtime for seasonal feriods. — The maximum hours 
fixed in Section 1 above shall not apply for eight (8) weeks in any 
twenty-six (26) weeks period, during which overtime shall not ex- 
ceed eight (8) hours in any one (1) week. In any such case at 
least one and one half times the normal rate shall be paid for hours 
worked in excess of eight (8) hours in any twenty-four (24) hour 
period, or in excess of forty (40) hours in any seven (7) day period. 

(d) Reforting overtime. — All work in excess of the hours pro- 
vided in Section 1 above shall be reported to the Code Authority 
in such detail as may be required. 

Sec. 3. Sunday and holiday loarh. — Not less than one and one half 
times the regidar rate shall be paid for all work performed on 
Sundays or legal holidays, but watclmien are excepted from this 
provision. 

Sec. 4. Watchmen. — Watchmen shall be permitted to work not in 
excess of forty-eight (48) hours per week. 

Sec. 5. Employment hy several employers. — No emploj^er shall 
knowingly permit any employee to work for any time which, when 
totaled with that already performed for another employer or em- 
ployers, exceeds the maximum permitted herein. 

Sec. 6. Maximum hours for working employers. — Employers who 
personally perform manual work or are engaged in mechanical 
operations shall not exceed the prescribed maximum number of 
hours. 

Article V — Wages 

Section 1. (a) No employee, except as hereinafter provided, shall 
be paid at less than the rate of forty (40) cents an hour. 

(b) Clerical employees shall be paid at a rate of not less than fif- 
teen ($15.00) dollars per week, provided however, that office boys 
and girls and messengers shall be paid at a rate not less than eighty 
(80) percent of the minimum salary herein provided, and provided 
further that the number of such office boys and girls and messengers 
so paid shall constitute not more than five (5) percent of the total 
number of office or clerical workers employed by any one employer; 



248 

but in any case, each employer shall be entitled to employ two (2) 
such employees. 

Sec. 2. Piece rates. — This Article establishes a minimum rate of 
compensation, irrespectiA-e of whether an employee is actually paid 
on a time rate, on a piece rate, or other basis. 

Sec. 3. Females. — 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 file with the Administrator within ninety (90) days after the 
effective date of this Code a description of all occupations in the 
Industry in which both men and women are employed. 

Sec. 4. Apprentices. — Regularly indentured apprentices shall be 
paid a starting rate not less than eighty (80) percent of the mini- 
mum set forth in Section 1 above. The number of apprentices shall 
not at any time exceed the ratio of one (1) apprentice to ten (10) 
skilled workmen engaged in production. A copy of all such appren- 
ticeship contracts shall be filed with the Code Authority. 

Sec. 6. Disabled eviployees. — An individual whose earning capa- 
citj' is limited because of age or physical or mental handicap may be 
employed on light work at a w^age below the minimum established 
by this Code, if the employer obtains from the State Authority 
designated by the United States Department of Labor a certificate 
authorizing his emploj'ment at such wages and for such hours as 
shall be stated in the certificate. Each emploj-er shall file with the 
Code Authority a list of all such persons employed by him. 

Sec. 6. Adfitsting wage scale. — Within thirty (30) days after the 
effective date of this Code, the Avages paid all workers whose pay is 
above the minimum shall be equitably adjusted if this has not 
already been done since May 1, 1933. In making such readjustment, 
there shall be no decrease in wage rates at this time. Within sixty 
(60) days of effective date the Code Authority shall report to the 
Administrator the readjustments made. 

Article VI — General Labor Provisions 

Section 1. In compliance with Section 7 (a) of the Act it is 
provided: (a) that employees shall have the right to organize and 
bargain collectively through representatives of their own choosing, 
and shall be free from the interference, restraint, or coercion of 
employers of labor, or their agents, in the designation of such repre- 
sentatives or in self-organization or in other concerted activities for 
the purpose of collective bargaining or other mutual aid or protec- 
tion; (b) that no employee and no one seeking emplo3anent 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 con- 
ditions of employment approved or prescribed by the President. 

Sec. 2. No person uncler 16 years of age shall be employed in the 
Industry, nor anyone under 18 years of age shall be employed at 
operations or occupations hazardous in nature or detrimental to 
health. The Code Authority shall submit to the Administrator 



249 

before ninety (90) days a list of such occupations. In anj^ 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 b}' the authority 
in such State empowered to issue employment or age certificates or 
permits, showing that the emploj^ee is of the required 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, health, fire, 
or general working conditions, than under this Code. 

Sec. 4. Emploj^ers shall not reclassify emploj^ees or duties of the 
occupations performed by employees or engage in any other subter- 
fuge to defeat the purposes oi the Act. 

Sec. 5. Each employer shall post in conspicuous places, accessible 
to employees, full copies of this Code. 

Sec. 6. Every employer shall make reasonable provision for the 
safety and health of his employees at the place and during the hours 
of their employment. 

Article VII — Code Administration 

To further effectuate the policies of the Act, a Code Authority is 
hereby constituted to administer, supervise, and promote the per- 
formance of the provisions of this Code. 

Section 1. The Code Authority shall consist of not less than five 
(5) and not more than nine (9) members, five (5) of whom shall be 
appointed by the Executive Committee of the Association. If any 
members of the Industry, who pay their proportionate share of the 
expense of the administration of the Code, but who are nonmembers 
of the Association, desire representation, they may elect, by some fair 
method, subject to the approval of the Administrator, one (1) mem- 
ber. The iCdministrator ma}^ appoint not over three (3) members 
without vote. 

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 
comj)ly with the provisions of the Act, may require an appropriate 
modification in the method of selection of the Code Authority. 

Sec. 3. It is the intention of the Industry to keep the President 
informed as to the observance or nonobservance of this Code, and as 
to whether the Industry is taking appropriate steps to effectuate the 
declared policy of the Act, Therefore, each employer shall prepare 
and file with such person or organization as the Code Authority may 
designate, and at such times and in such manner as may be pre- 
scribed by the Code Authority (to be held and used subject to the 
limitations of Article XI hereof), statistics of plant capacity, volume 
of production, volume of sales in units and dollars, orders received, 
unfilled orders, number of employees, wage rates, emploj^ee earnings, 
and hours of work. 

It is, however, expressly provided, that the jurisdiction of the 
Code Authority under this Code over any employer is limited to that 



250 

portion of the business and employment of such employer, which 
IS within the Industry. 

Sec. 4. If the Administrator shall determine that any action of a 
code authority or any agency thereof may be unfair or unjust or 
contrary to the public interest, the Administrator may require that 
such action be suspended 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 not be effective 
unless the xVdministrator api:)roves or unless he shall fail to dis- 
approve after thirty days' notice to him of intention to proceed with 
such action in its original or modified form. 

Article VIII — Prices 

Members of the Industry shall file with the Code Authority a 
complete schedule of price lists, terms, discounts, and conditions of 
sale, including points of delivery, for the products of the Industry 
within ten (10) days after the effective date of the Code; such price 
lists, terms, discounts, and conditions of sale, including points of 
delivery, may be revised only upon notice by registered mail to the 
Code Authority, and shall become effective on the tenth day after 
such notice unless the Code Authority shall authorize a shorter 
period. The Code Authority shall immediately send copies of all 
price lists, terms, discounts, and conditions of sale, including points 
of delivery, so filed to all members of the Industry cooperating in 
the administration of this Code. Effective filed price lists, terms, 
discounts, and conditions of sale, including points of delivery, shall 
be open to the inspection of the trade factors as each may be 
concerned. 

Members of the Industry shall not sell their products at other 
prices or on other terms or conditions than set forth in their own 
price list. When any member of the Industry revises his price list, 
any other member oi the Industry may revise his price list accord- 
ingly to become effective on the same date as the revised price list 
first filed. 

Article IX — Cost Protection 

Costs shall be determined in accordance with the principles enu- 
merated in an adequate cost system to be formulated by the Code 
Authority with the approval of the Administrator. The Code Au- 
thority shall with the approval of the Administrator specify those 
items of cost which shall be allowable. It is understood that a mem- 
ber of the Industry may use any cost system approved by the Code 
Authority and the Administrator. 

Article X — Code Open to All Employees 

Members of the Industry shall be entitled to participate in and 
share the benefits of the actiyities 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. Each member of 
the Industry accepting the benefits of the activities of the Code 
Authority relative to the preparation and administration of this 



251 

Code shall pay to the Code Authority his proportionate share of the 
amounts necessarj'^ to defray the expense of assembling, analyzing 
and publishing such reports and data. This proportionate share 
shall be based on the volume of business and/or such other equitable 
factors which the Code Authority may prescribe and the Admin- 
istrator approve. 

Article XI — Data Confidential, 

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. 

Except as otherwise provided in the Act, all statistics, data, and 
information filed in accordance with the provisions of the Code shall 
be confidential. 

The statistics, data, and information of one employer shall not be 
revealed to any other employer, except that, for the purpose of 
administering or enforcing the provisions of this Code, the Code 
Authority, by its duly authorized representatives (who shall not be 
in the employ of any employer affected by this Code), shall have 
access in summarized form to any and all statistics, data, and 
information that may be furnished in accordance with the provisions 
of this Code. 

Article XII — Not to Sell Below^ Cost 

Section 1. No employer shall sell or exchange any product of the 
Industry manufactured by him at a price^ or upon terms and con- 
ditions, which will result in the customer paying for the goods 
received, less than the cost thereof to the seller, determined in accord- 
ance with the method of costing above described ; provided, however, 
that obsolete merchandise may be disposed of by any employer at a 
lesser price, but only if such employer, not less than two (2) weeks 
before such disposal, has filed with the Code Authority, for imme- 
diate transmittal to all direct competitors, a statement in writing 
setting forth an identifying description and quantity of such mer- 
chandise, and provided further, that any member may meet the price 
competition of any other member whose costs under this Code pro- 
vision are lower. 

Sec. 2. In event the Code Authority finds that any filed price 
w^ould cause instability in the market, the Code Authority may re- 
quire the member of the Industry filing such price to establish that 
such price does not involve a net return to such member less than 
his cost determined pursuant to Section 1 above of this Article. 
Until such filed price under scrutiny is held violative of Section 1 
above, it may remain in effect. 

Article XIII — Unfair Trade Practices 

Unfair practices shall be deemed to be practices or acts which by 
subterfuge, concealment, misrepresentation, or by any form of dis- 
crimination, result in selling below published prices, or in deceiving 



252 

or misleading purchasers, or in misrepresenting the products of com- 
petitors. The following specific practices are examples of unfair 
methods of competition as defined above and shall be prohibited. 

Section 1. Unethical and false statements. — No manufacturer 
shall, through the medium of his catalogue, advertisement, or any 
other printed matter or by his representative, make any statement 
or inference reflecting upon the methods of business procedure of 
his competitor or make any false and misleading statements regard- 
ing the product or price of a competitor. 

Sec. 2. Commercial hriberii. — 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 employer in relation to 
the business of tlie employer of such employee, the principal of such 
agent, or the represented party, without the knowledge of such em- 
ployer, 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 above defined. 

Sec. 3. Secret rehates. — The secret payment or allowance of re- 
bates, refunds, cormnissions, credits, or unearned discounts, whether 
in the form oi 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. 4. Conslgnvients. — No manufacturer of Machine Knives shall 
carry this product in stock anywhere in the United States on con- 
signment except in branch houses of his own or with his own agent 
and who shall be listed with the Secretary of the Code Authority. 

Sec. 5. Guarantee. — No manufacturer shall replace or make al- 
lowances on any machine knives because of complaint against the 
quality of same on the part of the consumer, except after full exami- 
nation of said knives by the manufacturer producing them, and then 
only when the manufacturer finds that the complaint is based on 
fair and reasonable grounds. Claims entered for faulty workman- 
ship or material which are not report-ed within a reasonable time 
and until after the product has been largely consumed should not 
be allowed, but if any allowance is made it shall be upon the basis 
of the amount used. 

Sec. 6. Free service. — No manufacturer shall render to any pur- 
chaser of any products, in or in connection with the sale of such 
product, any unusual service or packing, unless fair compensation 
for such service or packing shall be paid by such purchaser. 

Sec. 7. Selling commission. — No manufacturer shall grant either 
a selling commission or dealer's discount to any concern or individual 
other than an established machine-knife dealer, jobber, salesman, or 
machine builder. An established dealer, jobber, or salesman is one 
whose business it is to buy and resell, or to sell, for a salary or com- 
mission, to buyers of machine knives ; such dealers, jobbers, or sales- 
men not being controlled or paid for their purchasing efforts by 
the user. 

Sec. 8. Make-and-hold-orders. — No manufacturer shall make 
knives of special design to be carried in stock until called for by 



253 

the customer, unless the customer places -with the manufacturer a 
bona fide order specifying the number of knives and delivery date, 
which delivery date must not exceed ninety (90) days. This pro- 
vision shall not prevent a Member of the Industry from manufac- 
turing and carrying a stock a reasonable number of special knives 
not to exceed twenty (20) percent in excess of the number ordered 
for the purpose of reducing the production cost of such knives. 

Sec. 9. Any discrimination between purchasers by the sale of anv 
article having a published price, at any price below the sellers 
published price by means of direct or indirect price concessions, or 
by means of any privilege not extended to purchasers generally. 

Sec. 10. Withholding from or inserting in an invoice, statements 
Avhich make the invoice a false record, wholly or in part, of the 
transaction represented on the face thereof. 

Sec. 11. The sale or offering for sale of any product of the 
INIachine Knife Industry under anj^ form of guarantee to the pur- 
chaser or prospective purchaser against either advance or protection 
against the decline in the price of said product. 

Sec. 12. Any deviation from the standards as set forth in this 
Article XIII, or from any amendments thereto, by any member of 
the Industry either directly or indirectly through his agents, shall 
be considered an unfair method of competition and a violation of 
this Code by such member. 

Article XIV — Expokt Sales 

The provisions of this Code conceining sales shall not apply to 
direct export sales of any product. The term " export " shall in- 
clude shipments to foreign countries and to the territories and 
possessions of the United States. 

Article XV — I imports 

The Code Authority shall secure current information concerning 
the competition in domestic markets of imported Machine Knife 
and Allied Steel Products and if it shall find that such products 
are being imported into the United States in substantial quantities 
or increasing ratio to domestic production and on such terms or 
under such conditions as to render ineffective or seriously to endanger 
the maintenance of this Code, it shall make complaint to the Pres- 
ident pursuant to the provisions of Section 3 (e) of the Act and 
petition for suitable restrictions on the importation of such Machine 
Knives and Allied Steel Products. 

Article XVI — Amendments and Additions 

Such of the provisions of this Code, as are not required by the 
National Industrial Recovery Act to be included herein, may, with 
the approval of the Administrator, be modified or eliminated as 
changed circumstances or experience may indicate. This Code is 
intended to be a basic code and study of the trade practices of the 
Machine Knife Industry will be continued by the Code Authority 



254 

of tlie IMachine Knife Industry with the intention of submitting 
from time to time, to the Administrator for approval, additions to, 
or revisions of this Code applicable to all employers in the Ma- 
chine Knife Industry. 

Article XVII — General Provisions 

Section 1. Pursuant to subsection (b) of Section 10 of the Na- 
tional Industrial Recovery Act, 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 said Act. 

Sec. 2. Effective date. — This Code shall become effective on the 
tenth day after its approval by the President. 

Approved Code No. 263. 
Registry No. 1331-1-01. 

o 



\ 
1 

( 

i 



tl 



Approved Code No. 264 
CODE OF FAIR COMPETITION 

FOR THE 

FOUNDRY EQUIPMENT INDUSTRY 

As Approved on February 6, 1934 



OEDER 



Approving Code of Fair Competition for the Foundry Equipment 

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 Foundry Equipment 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 

Qir6Ct/6Q. to tllG PrGSlQGIlt ' 

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, on condition that the 
words " and without expense to the Industry ", in paragraph (a) , 
Section I of Article VI be eliminated, and that the words " and 
members of their respective staffs ", in the first and third paragraphs 
of Section I, of Article III, be eliminated. 

Hugh S. Johnson, 
Adjninistrator for Industrial Recovery, 
Approval Recommended : 
W. A. Harriman. 

Division Administrator, 

Washington, D.C, 

February 6, 19S4,. 

38566° 376-26 34 (255) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Foundry Equipment Industry in the United States, the hearing 
having been conducted in "Washington on November 10, 1933, in 
accordance with the provisions of the National Industrial Recovery 
Act. 

PROVISION FOR HOURS AND WAGES 

Normal working time provided in this Code is 8 hours per day and 
40 hours per week, work being limited to 6 days in any 7-day period. 
However, to meet sharp peak demands difficult to handle by increas- 
ing the regular force, employees engaged in production are permitted 
to work 48 hours per week, this overtime being limited to 36 hours in 
any 3 months. Exception also is made in the case of employees on 
emergency work due to breakdowns or in protection of life or prop- 
erty. In the above cases time and a half is paid for time over 8 hours 
per day and 40 hours per week. Watchmen and heating-plant jBre- 
men are limited to 8 hours per day and 56 hours per week. The 
hour limitation does not apply to clerical, executive, and technical 
employees earning not less than $35.00 per week, nor to outside sales 
and service men while their expenses are paid by the employer. 

The minimum wage for factory employees is 40 cents per hour, 
women being paid the same as men on substantially the same work. 
Clerical and office employees have a minimum of $15.00 per week 
except for a limited number of office boys and girls who shall be 
paid not less than 80 percent of the $15.00 minimum. 

CHILD LABOR 

The minimum age set by this Code is 16 years ; except in hazardous 
occupations on which the minimum age is set at 18 years. 

ECONOMIC EFFECT OF THE CODE 

This industry develops and builds the equipment used in foundries 
on the production of metal castings. It is one of the capital goods 
industries which has suffered severely from the effects of the depres- 
sion. With foundries throughout the country operating at extremely 
low levels during four years, the falling off in the demand for foun- 
dry equipment has been such that employment in this industry fell 
from 1,437 in 1929 to a low of 480 in 1933. with a decrease in average 
hours per week from 49 in 1929 to 33 in 1933, production being only 
12 percent of capacity in November 1933. 

(256) 



257 

While under present conditions no additional employment is cre- 
ated by the 40-hour week, the industry anticipates that through in- 
creased foundry activity under the National Recovery Act there is a 
distinct possibility that under the Code the maximum employment 
in this industry eventually will be increased by at least 25 percent. 

This industry employs a high proportion of skilled workers and 
wages in most cases already are considerably above the 40-cent mini- 
mum set by the Code, there having been very little increase in average 
hourly rates since 1929. 

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- 
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 this Code has been approved by me, on condition 
that the words " and without expense to the industry " in paragraph 
(a) Section 1 of Article VI be eliminated. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
February 6, 1934. 



CODE OF FAIR COMPETITION FOR THE FOUNDRY 
EQUIPMENT INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are submitted as a Code of 
Fair Competition for the Foundry Equipment 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 

1. The term " Foundry Equipment Industry " as used herein 
includes the designing, manufacturing for sale, and/or selling and 
installing by the manufacturer of all types of foundry equipment 
applicable to the production of metal castings in any form, and 
such branches or subdivisions thereof as may from time to time 
be included under the provisions of this Code. 

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

3. The term " employer " as used herein includes anyone by whom 
any such employee is compensated and 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 term " member of the code " includes any member of the 
industry who shall expresslv signify assent to this code. 

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

Article III — Hours 

1. No employee excepting clerical or office employees and those 
employed in executive, managerial, or supervisory capacities, tech- 
nical employees and members of their respective staffs, who earn 
in no week less than $35.00, and outside salesmen and outside service 
men while their expenses are paid by the employer, shall be per- 
mitted to work in excess of 8 hours in any 24-hour period or 40 
hours in any week. This provision shall not apply to watchmen 
and firemen, maintaining fires for heating, who may be permitted 
to work not in excess of 8 hours per day, or 56 hours per week. 

(258) 



259 

Provided further, that in cases of poaU demand which cannot bd 
met by increasing the regular force of employees, any employee 
engaged in production of the products of the industry whose hours 
of work are herein otherwise limited may be permitted to work not 
to exceed 48 hours per week, with time over 40 hours per week limited 
to not more than 36 hours in any 3 months' period, provided that 
such employee be paid one and one-half (li/^) times his regular 
hourly rate of pay for all hours worked in excess of 8 hours per 
day or 40 hours per week. 

No clerical or office employees, excepting those employed in man- 
agerial, executive, or supervisory capacities, technical employees and 
members of their respective staffs, who earn in no week less than 
$35.00, shall be permitted to work in excess of 8 hours in any 24-hour 
period or 40 hours in any one week.^ 

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 one and one-half (II/2) times his normal 
hourly rate shall be paid for hours worked in excess of the normal 
hours herein provided. 

3. No employee except as herein above provided shall be permitted 
to work more than six (6) days in any seven (7) day period. 

4. No employee shall work or be permitted to work for a total 
number of hours in excess of the number of hours herein limited 
for each 24-hour or 7-day period or week, whether employed by one 
or more employers. 

Article IV — ^AVages 

1. No employee, except clerical or office employees, shall be paid 
at less than the rate of forty cents (40^) per hour; 

Provided, however, that 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 em- 
ployment at such wages and for such hours as shall be stated in the 
certificate. Each employer shall file with the Code Authority a 
list of all such persons employed by him. 

2. No clerical or office employee shall be paid at less than the rate 
of fifteen ($15.00) dollars per week, excepting office boys and girls, 
who may be paid at a rate not less than 80% of the minimum wage 
above provided ; provided that no employer shall employ a number 
of such office boys and girls in any office in excess of 5% of the total 
number of his office employees, provided further, however, that any 
employer shall be permitted to employ 2 such office boys and girls 
in each office. 

3. Nothing in this Article IV shall apply to or affect any bona fide 
apprentice duly indentured under a system or course of training 
which, when completed, will make the apprentice a skilled mechanic. 
A copy of each indenture shall be filed with the Code Authority. 

^ See paragraph 2 of order approving this Code. 



260 

4. At no time shall new apprentices be admitted to apprenticeship 
in the employ of any one employer when such action will bring the 
total number of apprentices in the employ of such employer to more 
than 10 percent of the total number of skilled mechanics employed by 
such employer, any employer being entitled to employ 2 such 
apprentices. 

6. Wage rates for employees now being paid at more than the mini- 
mum rate, hereinabove provided, shall be equitably adjusted in ac- 
cordance with such minimum rate; provided, however, that no such 
rate in excess of such minimum rate shall be reduced. Within sixty 
days after the effective date each employer shall report to the Ad- 
ministrator through the Code Authority all such readjustments made 
by him since June 16, 1933. 

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

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

Article V — General Labor Provisions 

1. No person under sixteen years of age shall be employed in the 
industry nor anyone under eighteen years of age at occupations or 
operations hazardous in nature or detrimental to health. In any 
State an employer shall be deemed to have complied with this pro- 
vision if he shall have on file a certificate or permit duly issued by 
the authority in such State empowered to issue emplovment 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 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 m other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection. 

3. No emploj^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 organization of his own 
choosing, and 

4. Em]3loyers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment ap- 
proved or prescribed by the President. 

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

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees so as to defeat the purposes of the 
Act. 

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



J 



2G1 

Article VI — Administration 

To effectuate further the policies of the Act, a Code Authority is 
hereby constituted to cooperate with the Administrator in the ad- 
ministration of this Code. Tlie Administrator shall have the power 
to disapprove any act of the Code Authority that in his judgment 
violates or tends to violate the National Industrial Recovery Act, 
its intent and purposes. 

1. Organization and Constitution of Code Authonty. — (a) The 
Code Authority shall consist of not more than ten and not less than 
nine voting members. Nine of such members shall be appointed by 
the Board of Directors of the Foundry Equipment Manufacturers 
Association, Inc., and one may be chosen by members of the industry, 
if any, who are not members of the Foundiy Equipment Manufac- 
turers Association, provided such representation is desired by such 
members of the industry. The Administrator in his discretion may 
appoint not to exceed three additional members without vote and 
without expense to the industry, to represent such interests as he 
may designate.^ 

(b) The Foundry Equipment Manufacturers Associations, Inc. 
agrees to (1) impose no inequitable restrictions on membership, and 
(2) submit to the Administrator true copies of its articles of asso- 
ciation, bylaws, regulations, and any amendments when made 
thereto, together with such other information as to membership, 
organization, and activities as the Administrator may deem neces- 
sary 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 Avith the provisions of the Act, may require an appropriate 
modification in the method of selection of the Code Authority. 

2. Powers and Duties of Code Authority.- — The Code Authority 
shall have the following duties and powers to the extent permitted 
by the Act : 

(a) Joint Industrial Relations Board. — To create as an agency of 
the Code Authority, 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 investigate all matters in the Code relating to hours, wages, and 
general labor provisions and to report their findings and recom- 
mendations to the Code Authority. The designated employees' rep- 
resentatives shall be truly representative of the employees of the 
industry and shall be selected by such employees. 

(b) Expense. — The expenses of administering the Code shall be 
borne by members of the industry. The Code Authority may from 
time to time make such assessments on account of such expenses 
against the members of the industry as it shall deem proper and such 
assessments shall be payable as the Code Authority shall specify. 

' See paragraph 2 of order approving this Code. 



262 

Tlie assessments above referred to shall be apportioned among the 
members of the industry prorated to dollar volume of sales. 

(c) Specific Powers. — The Code Authority, in addition to the gen- 
eral powers provided herein, shall have the power to require from 
members of the industry such reports as are necessary to effectuate 
the purposes of the Code ; may upon its own initiative or upon com- 
plaint of any member of the industry make investigations as to the 
function and observance of any provision of the Code; may hear all 
matters developing from such investigations and attempt to deter- 
mine the same ; and may from time to time present to the Adminis- 
trator recommendations including interpretations based on condi- 
tions in the industry which will tend to effectuate the operation of 
the provisions of the Act. 

The Code Authority shall have the power, in addition to the spe- 
cific powers herein granted, to hear all matters pertaining to the pro- 
visions of the Code which may be submitted to it by any member of 
the industry and to report such matters to the Administrator and to 
exercise any other general and lawful powers which may be necessary 
to secure performance thereunder. 

(d) General Irrvproveiiient RecoTrvmendations. — It shall be the 
duty of the Code Authority to submit to the Administrator from 
time to time such recommendations as in its judgment will have 
the effect of improving the Code, or of improving the results se- 
cured thereunder, any of which recommendations when approved by 
the Administrator, shall have the same force and effect as other 
provisions of this Code. Every recommendation shall be made only 
after a proper canvass of the opinion of the industry. In submitting 
any recommendation to the Administrator, the aggregate number 
of members of the industry as well as the aggregate productive 
capacity favoring or opposing the recommendation shall be indi- 
cated. Such recommendations shall, among others, be of the fol- 
lowing character: 

Recommendations for changes in such provisions of the Code as 
relate to hours of work, plant hours, minimum wages, and working 
conditions, as may seem desirable in the light of experience under 
the Code. 

(e) Procedure. — Any complaint made by a member of the indus- 
try concerning an alleged violation of the Code by another member 
of the industry shall be submitted to the Code Authority in writing 
and by registered mail. The complaint shall contain a complete 
statement of the facts, and shall refer specifically to that part of the 
Code which is alleged to have been violated. The Code Authority 
shall obtain such information as, in its opinion, shall be necessary 
to establish the facts. If it shall appear to a majority of the Code 
Authority that there has been a violation of the Code, a statement 
of the charges shall be sent by registered mail to the member of the 
industry alleged to have committed the violation. The statement of 
charges shall fix the time and place for a hearing and at this hearing 
the member of the industry charged with the violation shall be 
given an opportunity of presenting his defense. If it is the decision 
of a majority of the Code Authority that a violation of the Code 
has been committed, it shall take such steps as may be necessary to 
effectuate the provisions of the Act. 



263 

(f) General Administrative Provision. — In addition to tho in- 
formation required to be submitted to the Code Authority as set 
forth in (c) of this Section and Article, there shall be furnished to 
the government agencies such statistical information as the Admin- 
istrator shall deem necessary for the purposes recited in Section 
8 (a) of the National Industrial Recovery Act. 

An appeal from any action by the C'ode Authority affecting the 
rights of any employer or employee in the industry may be taken 
to the Administrator. 

(g) Personal Exem.'ption of Code Authority. — Nothing contained 
in this Code shall constitute the members of tliis Code or of the Code 
Authority 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 
nonfea,sance. 

Article VII — Trade Practice 

1. Cost Accownting . — Every employer shall use a cost accounting 
System which conforms to the principles of and is at least as detailed 
and complete as the uniform and standard method of cost accounting 
to be prescribed by the Code Authority and approved by the 
Administrator. 

2. Supplementary Codes. — The Code Authority shall survey the 
trade practice condition,s of the industry and various allied subdivi- 
sions thereof, that tend to defeat the purposes and effectiveness of 
the Act, and may present to the Administrator supplementary Codes 
of fair trade practices, which, upon approval by the Administrator, 
shall have the same force and effect as provisions of this Code. 

3. Unfair Trade Practices. — The following practice;,s constitute 
unfair competition and are prohibited : 

(a) Misrepresentation or False or Misleading Advertising. — The 
making or causing or knowingly permitting to be made or published 
and 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. 

(b) Com/mercial Bribery. — Directly or indirectly to give or per- 
mit to be given, or offer to give, money or anything of value to 
agents, employees, or representatives oi customers or prospective 
customers, or to agents, employees, or representatives of competi- 
tor,s' customers or prospective customers, with or without the knowl- 
edge of their employers or principals, as an inducement to influence 
their employers or principals to purchase or contract to purchase 
from the makers of such gift or offer, or to influence such employers 
or principals to refrain from dealing or contracting to deal with com- 
petitors; provided, however, that nothing in this paragraph shall 
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. 



264 

(c) 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. 

(d) Secret Rebates. — The secret payment or allowance of rebates, 
refunds, commission, 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. 

(e) Giving of Prizes, Premiwns, 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. 

(f) Defa7nation. — The defamation of competitors by falsely im- 
puting to them dishonorable conduct, inability to perform contracts, 
questionable credit standing, or any other false representations or 
by false disparagement of the grade or quality of their goods. 

(g) Threats of Litigation. — The publishing or circularizing of 
threats for infringement of patents or trade marks or of any other 
legal proceedings not in good faith, with the tendency or eifect 
of harassing competitors or intimidating their customers. 

(h) 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. 

(i) Firm Bidding. — The altering of original bids on the same 
equipment unless a change in specifications or requirements of the 
buyer has been made. 

(j^ Selling Below Cost. — Selling or offering to sell products or 
service of the industry at a price below the seller's cost. Cost shall 
be determined in accordance with Section 1 of this Article VII. 

(k) Engineering and Service Charges. — Furnishing patterns, en- 
gineering, or erecting service without making proper charges for 
same, as defined in Section 1 of Article VII. 

(1) Detail Shop Drawings. — To furnish detail drawings of stand- 
ard units whether manufactured by a member or purchased by him 
for resale. 

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

Article VIII — Eights of President 

This Code and all the provision thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of subsection (b) of Section 10 of the National Industrial Recovery 
Act, from time to time to cancel or modify any order, approval- 
license, rule, or regulation issued under Title I of said Act and 
specifically, but without limitation, to the right of the President to 



265 

cancel or modify his approval of this Code or any conditions im- 
posed by him upon his a})proval thereof. 

AirnCLE IX ]\f(»l)IFICATION 

This Code, except as to provisions re(|uired 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, 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 discriminate 
against small enterprises. 

Article XI — Price Increases 

Wliereas 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, 
60 far as reasonably possible, be limited to actual increases in the 
seller's cost. 

Article XII — Export Trade 

1. No provision of this Code relating to prices or terms of selling, 
shipping or marketing, shall apply to export trade or sales or ship- 
ment for export trade. 

2. The exceptions established by this section shall apply also to 
sales or shipments of materials actually used in manufacture for 
export trade. 

Article XIII — Effective Date 

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

Approved Code No. 264. 
Registry No. 1112-02. 

o 



i 



Approved Code No. 265 
CODE OF FAIR COMPETITION 

FOR THE 

COFFEE INDUSTRY 

As Approved on February 6, 1934 



ORDER 

Approving Code of Fair Competition for the Coffee 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 Coffee 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, 1, 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 that the 
provisions thereof shall not become effective and they are hereby 
stayed for a period of ten (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, provided 
further, that the limitation of hours for watching crews specified 
in Article III, Section 1(b) shall be changed from 63 to 56. 

Hugh S. Johnson, 
AdTnimstrator for Industrial Recovery. 

Approval recommended : 
Walter White. 
Deputy Adrmnistrator. 

Washington, D.C, 

February 6^ lOSJf.. 

38565° 376-25 34 (267) 



REPORT TO THE PRESIDENT 



The President, 

Tlie White House. 



INTRODUCTION 



Sir : This is a report on the Hearing of the Code of Fair Com- 
petition for the Coffee Industry. 

This hearing was held, in the Auditorium, National Museum, 
Washington, D.C., on October 24, 1933, pursuant to Notice of Hearing 
signed by the Secretary of Agriculture under Executive Order of 
June 26, 1933. By Executive Order of January 8, 1934, the juris- 
diction over this Code was transferred to the National Recovery 
Administration. Certain changes have been made in the Code to 
conform to N.R.A. policy, but these changes are not in conflict with 
the transcript of the record of the public hearing. 

GENERAL 

This Code applies to firms engaged in the importation and pur- 
chase of green coffee, and the roasting and blending and wholesale 
distribution of coffee. The volume of business in the Coffee Indus- 
try increased substantially up to 1929, but since that time, has 
remained practically unchanged. Prices, however, have declined 
very heavily during the last four years, and the value of importations 
in 1933 has not been much over one third of the 1929 value. In an 
effort to establish highly competitive nationally advertised brands, 
there have been many price concessions, which have brought the 
price of coffee to a low point. Seasonal fluctuations in the consump- 
tion of coffee are unimportant, even though the importations of 
coffee do show a considerable seasonable fluctuation. The value of 
importations has dropped from $302,397,000.00 in 1929 to an esti- 
mated figure of $127,843,000.00 in 1933. The number of employees 
in the Industry is estimated to be in the neighborhood of 13,000, 
although this is a rough estimate due to the lack of accurate figures 
on salesmen and office personnel. 

The hour provisions of the Code probably will add about 1,500 
employees to the Pre-President's Reemployment Agreement average. 
The minimum wage provisions will increase pay-roll disbursements 
by approximately $1,500,000.00, or 19% of the wage disbursements 
before the President's Reemployment Agreement. While the Coffee 
Industry possibly might have been able to support a slightly higher 
minimum wage scale, it was felt desirable to harmonize the wage and 
hour provisions of this Industry with those of the Mayonnaise, Spice, 
Peanut Butter, Tea, Flavoring Extract, and other similar industries, 
due to the fact that many establishments are engaged in processing 
and distributing these other products as well. 

(2G8j 



269 

The Coffee Industries' Committeo, consisting of the Executive 
Committee of the Associated Coffee Industries of America, will act 
as Code Authority for a period of ninety da3's, during which a plan 
for the election of their successors will be submitted to the Admmis- 
trator for approval. The Associated Coffee Industries of America 
is a trade association, truly representative of the Industry, and im- 
poses no inequitable restrictions on membership. 

HOUR AND WAGE PROVISIONS 

The Code of the Coffee Industry proposes a maximum work week 
of 40 hours with a limitation of 9 hours per day and 6 days in any 
7-day period. There are the usual exemptions, complete or partial, 
in the case of executive, managerial, and technical employees, and 
watchmen and outside salesmen. Chauffeurs, deliverymen, and em- 
ployees engaged in shipping work directly connected with delivery, 
may work 48 hours per week. Delivery salesmen are exempted from 
hours only if they earn $30.00 and $25.00 per week in cities of over 
and under 100,000 population, respectively. In cases of unforeseen 
peak production, inventory, and financial closing periods, employees 
may work not to exceed 6 hours overtime per week if they are paid 
time and one third for all such time worked. 

The minimum wages are set at 40(?^ per hour for men and 321^0 
per hour for women with a differential of 5^ per hour in the South. 
Office employees are under a minimum by population, starting at 
$16.00 per week for cities of over 500,000 population. 

The Deputy Administrator in his final report to me on said Coda 
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 super- 
vision, by eliminating unfair competitive practices, hj promoting the 
fullest possible utilization of the present productive capacity of 
industries, by avoiding undue restriction of production (except as 
may be temporarily required), and by increasing the consumption 
of industrial and agricultural products through increasing pur- 
chasing power, by reducing and relieving unemployment, by im- 
proving standards of labor, and by otherwise rehabiltating 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 lim- 
itation Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof; and that the Associated 
Coffee Industries of America is an industrial association truly rep- 



270 

resentative 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, 

A dimnis t rotor. 
February 6, 1934. 



CODE OF FAIK COMPETITION FOR THE COFFEE 
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 Coffee Industry, and its provisions shall be the standards of 
fair competition for such industry and shall be binding upon every 
member thereof. 

Article II — Definitions 

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

(b) The term "Administrator" means the duly designated repre- 
sentative of the President to administer the functions and powers 
delegated under Title I of the National Industrial Recovery Act. 

(c) The term "Act " means Title I of the National Industrial 
Recovery Act, approved June 16, 1933. 

(d) The term " Coffee Industry " as used herein shall be taken to 
mean and include the importation, purchase, distribution, and roast- 
ing of green coffee, and the distribution of coffee at wholesale by 
persons engaged in the roasting thereof, whether directly, through 
affiliates or subsidiaries, or by contract with other persons. 

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

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

(g) 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. 

(h) The term " State " includes any State or Territory and the 
District of Columbia. 

(i) The term " watching crews " so used herein includes persons 
whose primary function is watching and guarding the premises and 
property of an establishment. 

(j) The term "outside salesmen" as used herein shall be taken 
to mean any salesman who performs selling functions primarily and 
does not regularly deliver merchandise. 

(k) The term " route delivery salesmen " as used herein shall 
mean deliverymen who perform selling functions. 

(1) The term " Roaster " as used herein shall be taken to mean 
and include any person engaged in the roasting, processing, and 
packing of coffee and any person engaged in the distribution of coffee 
at wholesale where such person is likewise engaged in the roasting 
of green coffee, whether directly or through affiliates or subsidiaries 
or by contract with other persons. 

(271) 



272 

(m) The term " Food Broker " as used herein means any sales 
representative who performs the services of negotiating the sale of 
roasted coffee for and on account of the seller as principal, and 
whose compensation is a commission or brokerage paid by the seller. 

(n) The term " Coffee Industries Committee " as used herein shall 
mean the duly elected or selected members of the industry for the 
purpose of supervising the performance of the provisions of this 
Code. 

(o) The term " population " as used herein shall be determined 
by reference to the latest Federal Census, 

Article III — Horus 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any one week, nor more than nine (9) hours 
in anv one day, nor more than six (6) days in any seven (7) day 
period except as herein otherwise provided. 

(a) The provisions of this Article and the provisions of Section 
6 of Article IV shall not apply to outside salesmen, nor to persons 
employed in a managerial, executive, or technical capacity, who earn 
not less than thirty-five dollars ($35.00) per week, nor to route 
delivery salesmen provided that they receive regularly not less than 
thirty dollars ($30.00) per week in cities of 100,000 population or 
over, and not less than twentj^-five dollars ($25.00) per week in 
cities and towns of less than 100,000 population averaged over a 
four-week period. Rout€ delivery salesmen who do not work in 
excess of 48 hours per week shall be paid not less than the minimum 
wage per hour specified in Article IV, Section 2. 

(b) Wat<'hing crews, provided that no watchman shall work or 
be permitted to work in excess of 63 hours per week.^ 

(c) Chauffeurs, deliverymen, and employees engaged in shipping 
work directly connected with delivery, provided, however, that they 
shall not be permitted to work more than forty-eight (48) hours 
per week. 

Sec. 2. In cases of unforseen peak production, inventory periods, 
financial closing periods, and other unusual conditions beyond the 
control of the employer, employees may work in excess of the normal 
number of working hours per day or per week provided in this Code 
for the class of work performed by such employees. Such over- 
time shall not exceed six (6) hours in any one week except in cases 
of emergency repair work involving break-downs or protection of 
life and property, and shall be compensated by at least time and 
one third. Office workers receiving thirty-five dollars ($35.00) per 
week or over arc not subject to overtime payment. Reports shall be 
made to the Coffee Industries Committee when required by such 
Committee or by the Administrator stating the number of hours 
worked in excess of the maximum under the above provisions. 

Aeticle IV — Wages 

Section 1. No person employed in clerical, accounting, or other 
office work shall be paid less than the following schedule of wages: 

* See paragraph 2 of order approving this Code. 



273 

Cities of over 500,000 population or in the ininiediate trade area, 
$16.00 per week. 

Cities between 250,000 and 500,000 population or in the immediate 
trade area, $15.00 per week. 

Cities and towns less than 250,000 population or in the immediate 
trade area, $14.00 per week. 

except that office boys and messengers may be paid at a rate of 
two dollars ($2.00) below the above minima, provided, however, 
that where more than one employee is compensated at the minimum 
rate not more than ten percent (10% ) of the total number of office 
employees shall be so classified. 

Sec. 2. No male employee other than those covered in paragraph 
1 shall be paid at a rate of less than forty cents {4:0<^) per hour, 
and no female employee other than those covered in paragraph 1 
shall be paid at rate of less than thirty-two and one half cents 
(321/20) per hour except that minimum rates of thirty-five cents 
(35^) per hour for male employees and twenty-seven and one half 
cents (27i/^<^) per hour for female employees may be paid in the 
following states: Virginia, North Carolina, South Carolina, Tennes- 
see, Alabama, Georgia, Florida, Mississippi, Louisiana, Texas, 
Arkansas, Oklahoma, and Kentucky. 

Sec. 3. No watchman shall be paid at a rate of less than eighteen 
dollars ($18.00) per week. 

Sec. 4. 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. 5. Female employees performing substantially the same work 
as male employees, snail receive the same rate of pay as male em- 
ployees except that in continuous operations where state law or 
municipal ordinance limits the time of day for the working hours 
of female labor, employers will not be required to pay the same 
rates, provided that male and female employees do not work at 
differential rates during the same hours. 

Sec. 6. Time and one third shall be paid for all time worked 
(except by office workers receiving $35.00 per week or over and those 
classified as managerial, executive, and technical employees in Sec- 
tion 1 (a) of Article III) on Sundays and the following holidays: 
Christmas Day, Thanksgiving Day, George Washington's Birthday, 
Labor Day, July Fourth, New Year's Day, and such other holidays 
as may be proclaimed by the President of the United States. 

Sec. 7. The weekly compensation for employment in excess of 
the minimum wages established, notwithstanding that the hours of 
work in any such employment may be reduced, shall not be reduced 
as a result of the adoption of this Code, and the pay for such em- 
ployment shall be increased by an equitable readjustment of all 
pay schedules in order to maintain fair differentials existing prior 
to the adoption of this Code. It shall be the duty of the Coffee 
Industries Committee of the Industry to observe the operation of 
these provisions and reccommend to the Administrator such further 
provisions as experience may indicate to be appropriate to effectuate 
their purpose. 

Sec. 8. After the effective date of this Code, wages shall be 
exempt from fines, deductions and/or charges except that deduc- 



274 

tions accruing to the benefit of the employee may be made with his 
written consent. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (i6) years of age shall be 
employed in the Coffee 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 Coffee Indus- 
tries Committee shall submit to the Administrator before March 1, 
1934, a list of such operations or 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 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 organi- 
zation 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. Employers shall not change the method of payment of 
employee's compensation or reclassify employees or duties of occu- 
pations performed by employees so as to defeat the purposes of the 
Act or the provisions of this Code. 

Sec. 6. No employee now employed at a rate in excess of the 
minimum shall be discharged and reemployed at a lower rate for 
the purpose of evading the provisions of this Code. 

Sec. 7. No provision in this Code shall supersede any State or 
Federal law which imposes on employers more stringent require- 
ments as to age of employees, wages, hours of work, or as to safety, 
health, sanitary or general working conditions, or insurance, or fire 
protection, than are imposed by this Code. 

Sec. 8. No employer shall knowingly permit any employee 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. 

Sec. 9. No increase in the amount of production or work shall be 
required of employees for the purpose of avoiding the benefit to 
employees prescribed by this Code with respect to wages and hours 
of employment. All requirements Avith respect to increases shall be 
reported to the Coffee Industries Committee. 

Sec. 10. All employers shall post complete copies of the provisions 
of this Code dealing with hours, wages, and conditions of employ- 
ment in conspicuous places accessible to employees. 

Article VI — Unfair Trade Practices 

The following shall be deemed unfair methods of competition : 
Section 1. False Advertising. — The making or causing or per- 
mitting to be made, or the publication of any false, untrue, or de- 
ceptive statement, by way of advertisement, labeling, or otherwise, 



275 

concerning the grade, quality, quantity, substance, character, nature, 
origin, or preparation of any product of the industry. 

Sec. 2. Unethical Advertising — Disparagement of Competitors' 
Products. — The false or misleading disparagement of the grade or 

?uality of the products of competitors, or the dissemination of any 
alse statement of information relative to a competitor, or the 
products manufactured and distributed by such competitor. 

Sec. 3. Adulteration and Mishranding. — The use of cereals, chic- 
ory, coifee screenings, or other products compounded with coffee, 
unless containers be plainly and conspicuously labeled to indicate the 
presence of such fillers and the percentage content of such ingredients 
other than coifee or chicory. 

Sec. 4. Comm.erciai BHbery. — 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. This 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 
commercial bribery as hereinabove defined. 

Sec. 5. False Invoicing. — The publishing of any false or fictitious 
price list, and the use of invoices which falsely indicate date of 
invoice or shipment, prices, discounts, quantities, or terms of any: 
sale. - 1 

Sec. 6. Samples. — To provide or furnish directly or indirectly! 
samples in excess of two pounds, to hotels, restaurants, and insti-' 
tutions of like character. 

Sec. 7. Free Advertising or Space Allowance. — The making or 
causing or permitting to be made to distributors of coffee, including 
retail distributors selling to the ultimate consumer, and restaurants, 
hotels, and institutions of like character, any aclvertising and/or 
cooperation allowance or payments of any kind, including allow- 
ances or payments for window, shelf, floor, counter display, and/or 
preferred space, but not including advertismg allowances limited to 
the actual cost to such distributor for insertions in newspapers, 
handbills, or other printed advertising material. 

Sec. 8. Free Deals. — The giving, using, or offering of free deals 
of any and every kind for the account and benefit of the distributor, 
including retail distributors, hotels, restaurants, and enterprises of 
similar character, provided, however, that nothing contained herein 
shall be interpreted to affect the use of premiums for the use and 
benefit of the ultimate household consumer, provided further, that 
the price for the combined premium combination deal to the con- 
sumer does not constitute destructive price cutting or selling below 
cost within the meaning of Article VI, Sections 17 and 18, of 
this Code. 

Sec. 9. Gifts to Clubs. — To give any coffee to social clubs, card 
parties, or other such groups when such coffee is to be given or 
offered for sale in packages by such groups in competition with 
regular dealers unless such gift shall be made to authorized charitable 
agencies for strictly charitable purposes. 



276 

Sec. 10. Loans or Free Repairs. — For any roaster to induce or 
retain business b}' directly or indirectly lending money, giving, lend- 
ing, or renting equipment such as coffee mills, urns, steam tables, gas 
burners, etc., or by furnishing parts, replacements, or urn bags for 
such equipment, or by rendering services in making free repairs, 
painting stores, etc., or by furnishing menus, counter cards, napkins, 
or other articles whether or not such article includes the name and 
advertisement of the roaster, or by any direct or indirect subsidy of 
any nature — provided, that signs may be supplied by a roaster if 
such signs are confined solely and exclusively to the identification of 
a particular brand of coffee and the name of the dealer. Nothing 
in this provision shall prohibit the bona fide sale of any equipment 
included under the provisions of this Section, provided that such 
sale conforms to the rules and regulations to Ibe adopted by the 
Coffee Industries Committee with the approval of the Administrator 
governing and defining bona fide sale. The provisions of this 
section with respect to gift, loan, or rental of restaurant equipment 
shall become effective sixty days after the effective date of this Code. 

Sec. 11. Cash Discoimts. — To allow discounts for cash which are 
not earned by payment in accordance with the cash discount terms 
specified in an open price list. 

Sec. 12. Price Declines. — To make any guarantee against a price 
decline or to make any allowance with respect thereto, except that 
in sales for future delivery, a seller may contract to give a buyer the 
benefit of his own declines occurring prior to delivery. 

Sec. 13. Quantity Price. — 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. 

Sec. 14. Diversion of Sales Compensation. — No member of the 
industry shall pay a brokerage to any wholesale grocer, retail grocer, 
or other buyer, nor pay to any wholesale grocer or retail grocer or 
other buyer any part of the compensation or his (the manufacturer's) 
food broker. No part of any commission or compensation paid for 
sales service shall be used to reduce the price of the merchandise for 
the sale of which the said commission or compensation was paid. 

Sec. 15. Compvlsoiy Purchase. — No member of the industry shall 
compel the purchase of one product in order to purchase or obtain 
another. 

Sec. 16. Unfair Substitution. — No member of the industry shall 
substitute without due notice and consent of a trade buyer another 
product for that ordered from him. 

Sec. 17. Destructive Price Gutting. — No member of the industry 
shall engage in destructive price cutting. 

Sec. 18. Selling Below Cost. — No member of the industry shall sell 
roasted coffee below his own individual cost, except that he may be 
permitted at any time to meet the price of a competitor which is not 
in violation of this Code and may make such terms to government and 
other charitable institutions as he may see fit. For the purpose of 
determining a violation of this clause, all terms of sale, including 
cash discounts, shall be considered. 

Sec. 19. C oordination with Other Codes. — The Coffee Industry, 
recognizing the value of uniform basic trade practice provisions for 



277 

all food and grocery manufacturing Codes, pledges cooperation in 
securing the amendment of any trade-practice provisions approved by 
the President or suggested by the Administrator for the entire food 
and grocery manufacturing industry. 

Article VII — Open Prices and Accounting 

Section 1. Open Prices. — AVithin ten days after the effective date 
of this Code each roaster shall file with the Coffee Industries Com- 
mittee a list of prices together with terms of sale, including (juantity 
and/or other discounts offered in connection therewith at which such 
roaster offers for sale his several grades and packs of coffee, provided 
that no deviation from such price list ancf terms of sale shall be 
made by such roaster unless and until notification of such deviation 
and of the new price list and terms of sale has been sent by registered 
mail or by telegram to the Coffee Industries Committee. The Coffee 
Industries Committee shall make all open price lists available to 
every member of the industry and to purchasers in general. Such 
price list shall be made available by each roaster to all trade buyers 
(actual or solicited) alike located in the same competitive markets. 
AH open price lists shall contain every condition of sale, permitted by 
this code, including cash discounts. 

Sec. 2. Accounting. — Every roaster shall use an accounting system 
which shall conform to the principles of and is at least as detailed 
and complete as the standard and uniform method of accounting that 
shall be formulated or approved by the Coffee Industries Committee 
subject to the approval of the Administrator, with such variations 
therefrom as may be required by the individual conditions affecting 
any roaster, provided such variations are approved by the Adminis- 
trator, after recommendation by the Coffee Industries Committee. 

Sec. 3. Elements of Cost. — For determination of co^t, as used in 
Section 18, Article VI, the Coffee Industries Committee with the ap- 
proval of the Administrator shall from time to time set forth the 
elements which shall enter into cost. 

Article VIII — Administration 

Section 1. Selectian. — A Coffee Industries Committee consisting 
of nine (9) members, hereinafter called the Committee, shall be se- 
lected by the members of the industry for the purpo.se of supervising 
the performance of the provisions of this code. From and after the 
effective date of this code the Executive Committee of the Associa- 
tion shall function as the Committee, and shall, within thirty (30) 
days after the effective date hereof, submit for the approval of the 
Administrator a plan for the selection of a Committee, which shall 
truly represent all elements of the industry irrespective of member- 
ship in the Association. 

Sec. 2. In addition to membership as above provided, there may 
be three additional members, without vote, to be appointed by the 
Administrator. 

Sec. 3. The Coffee Industries Committee, with the approval of the 
Administrator, may appoint committees nominated by the green 
coffee trades in New York, New Orleans, and San Francisco, whose 



278 

specific duty it ^hall be to assist in the Administration of this Code 
as it applies to the green coffee trades in their respective markets, 
and may use such other agencies as it deems proper for the carrying 
out of any of the provisions of this Code, provided that nothing 
herein shall relieve the Coffee Industries Committee of its duties or 
responsibilities under this Code, and that such other Committees and 
agencies shall at all times be subject to and comply with the provi- 
sions hereof. 

Sec. 4. Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Coffee Industries 
Committee shall (1) impose no inequitable restrictions on member- 
ship, and (2) submit to the Administrator true copies of its articles 
of association, bylaws, regulations, and any amendments when made 
thereto, together with such other information as to membership, or- 
ganization, and activities as the Administrator may deem necessary 
to effectuate the purposes of the Act. 

Sec. 5. In order that the Coffee Industries Committee shall at all 
times be truly representative of the industry and in other respects 
comply with the provisions of the Act, the Administrator may pre- 
scribe such hearings as he may deem proper; and thereafter if he 
shall find that the Coffee Industries Committee is not truly repre- 
sentative 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 Coffee Industries Committee. 

Sec. 6. Members of the industry shall be entitled to participate in 
and share the benefits of the activities of the Coffee Industries Com- 
mittee 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 adminis- 
tration. Such reasonable share of the expenses of administration 
shall be determined by the Coffee Industries Committee, subject to 
review by the Administrator, on the basis of volume of business, 
and/or such other factors as may be deemed equitable. 

Sec. 7. Nothing contained in this Code shall constitute the mem- 
bers of the Coffee Industries Committee partners for any purpose. 
Nor shall any member of the Coffee Industries Committee be liable 
in any manner to anyone for any act of any other member, officer, 
agent, or employee of the Coffee Industries Committee. Nor shall 
any member of the Coffee Industries Committee, exercising reason- 
able 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. 8. If the Administrator shall determine that any action of a 
code authority or any agency thereof may be unfair or unjust or 
contrary to the public interest, the Administrator may require that 
such action be suspended 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 not be effective 
unless the Administrator approves or unless he shall fail to disap- 
prove after thirty days' notice to him of intention to proceed with 
such action in its original or modified form. 



279 

Articles IX — Powers a^td Duties 

Section 1, The Coifee Industries Committee shall have the follow- 
ing further powers and duties, the exercise of which shall be re- 
ported to the Administrator and shall be subject to his rif^ht, on 
review, to disapprove any action taken by the Coffee Industries 
Committee : 

(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 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 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 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 elect a representative to serve on any coordinating com- 
mittee which may 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. 

Sec. 2. Violations. — Members of the Industry and the Coffee Indus- 
tries Committee shall use their best efforts to insure the full observ- 
ance of the conditions of this Code. Any violations of the terms 
of this Code which shall come to the knowledge of any member of 
the industry shall immediately be communicated to the Committee 
by a sworn statement containing said charges of violations of the 
terms of this Code, together with all available substantiating 
evidence. 

It shall bejthe duty of the Committee to investigate such charges 
and any charges which shall come to the knowledge of the Committee 
through any other reliable source. The Committee shall request a 
statement under oath from the member of the industry whose trans- 
actions are under investigation. If, after investigation, the Com- 
mittee shall find that such charges are substantiated, it shall either 
notify the member so violating the conditions of this Code, request- 
ing that such violations be discontinued, or it shall notify the Admin- 
istrator in writing requesting him to take necessary action, or both. 
Provided, however, that nothing contained in this Article shall be 
construed in derogation of the rights of the Administrator under 
the Act, nor in derogation of the rights of any person to be heard 
when such right of hearing is granted under the Act, or otherwise 
by law. 



280 

Sec. 3. Investiffations. — Upon complaint against any member of 
the industry of a violation of this Code, the Coffee Industries Com- 
mittee may, upon authority granted by the Administrator, designate 
a firm of Certified Public Accountants, or public accountants having 
equal qualifications, to examine, during the usual hours of business, 
the books and records of the member of the industry against whom 
complaint has been made. Only such books and records as pertain 
to the alleged violation may be examined by the accountant employed, 
and said accountant shall not reveal to the Coffee Industries Com- 
mittee any other information obtained than information which is 
pertinent to the alleged violation. 

Article X — Monopolies 

Section 1. No provision of this Code shall be interpreted or ap- 
plied in such manner as to permit monopolies, or monopolistic prac- 
tices, permit, or encourage unfair competition ; or eliminate, oppress, 
or discriminate against small enterprises. 

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 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 Admin- 
istrator and such notice and hearing as he shall specify, and to 
become effective on approval. 

Article XII — Interpretation 

The Administrator or the Coffee Industries Committee, with the 
consent of the Administrator, may from time to time, issue such 
administrative interpretation of the provisions of this Code as may 
be necessary for the effectuation or clarification of its purposes. - ii 

Article XIII 

This Code shall become effective on the date of its approval. 

Approved Code No. 265. 
Registry No. lll-l-OL 



Approved Code No. 266 
CODE OF FAIR COMPETITION 

FOR THE 

INLAND WATER CARRIER TRADE IN THE 
EASTERN DIVISION OF THE UNITED STATES 
OPERATING VIA THE NEW YORK CANAL 

SYSTEM 

As Approved on February 6, 1934 



ORDEE 



Approving Code of Fair Competition for the Inland Water Car- 
rier Trade in the Eastern Division of the United States 
Operating via the New York Canal System 

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 Inland Water Carrier Trade in the Eastern 
Division of the United States operating via the New York Canal 
System, 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 Pres- 
ident, including Executive Order No. 6548-A, dated December 80, 
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: 
K. M. SIMPSON, 

Division Administrator. 
Washington, D.C. 

February 6, 1934.. 

38564"' 876-24 34 (281) 



EEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : The Code of Fair Competition for the Inland Water Carrier 
Trade in the Eastern Division of the United States operating via 
the New York Canal Sj'stem has been duly assented to by the pro- 
ponents of the code, the Canal Carriers Association, representing 
over 90% of the operators in the Trade. The Public Hearing was 
conducted in Washington on November 27, 1933, at which time 
every person who so requested was fairly heard in accordance with 
the usual procedure. The Code has the approval of the Industrial, 
Consumers', and Labor Advisory Boards of the National Recovery 
Administration. 

DESCRIPTION OF THE TRADE 

As defined in the code the trade embraces a specialized operation 
by means of which a substantial portion of the commodities moving 
between the Atlantic seaboard and the Great Lakes region are 
transported by way of the New York Canal System and the Saint 
Lawrence River. 

The code is designed to be coordinated with a proposed code of 
fair competition for the Inland Water Carrier Trade m the United 
States which may become a section of a general code of fair compe- 
tition for the Shipping Industry. 

RESUME or THE CODE 

Article I. — States the purpose. 

Art. II. — Sets forth definitions. 

Art. III. — Provides for coordination with other transportation 
codes or regulations. 

Art. IV. — Provides for participation by members of the trade. 

Art. V. — Eliminates child labor, contains the labor provisions re- 
quired by the Act, provides an Industrial Relations Board to deal 
with m.atters relating to labor disputes in the trade. 

Art. VI. — Provides a maximum average of 43 hours weekly for 
shore employees other than watchmen who are permitted to work 
50 hours per week. The maximum hours of la,bor for vessel em- 
ployees will be in accordance with the revised schedule of wage 
scales and working conditions to be presented for the approval of 
the Administrator within 60 days after the effective date of the 
Code, or before the opening of navigation. Ship-keepers and em- 
ployees in a managerial, supervisory, or executive capacity are ex- 
empted from the maximum hour provisions. In an emergency all 
employees may be exempted from the maximum hour provisions 

(282) 



283 

if compensated for such additional time worked at one and one 
half times the nornml rate of pay. 

Art. VII. — Provides a minimum of $15.00 per week for shore 
em]iloyees excepting office boys and girls who may be compensated 
at yO% of that amount. Provision is made for a comprehensive sur- 
vey of the labor conditions and rates of pay on lioard ship and pro- 
vides for the establishment of an adjusted schedule of minimum 
wages; and working conditions designed to better etfectuate the 
policies of the Act. 

Art. VIII. — Provides for the establishment of minimum rates, 
fares, and charges as part of a general plan for coordinating inland 
waterway transportation with other transportation media and regu- 
lating that portion of the trade not now supervised by State or 
Federal regulator}^ bodies. 

Art. IX. — Kequires the filing of statistics as required by the Code 
Authority, the Administrator, or other Federal and State agencies. 

Art. X. — Provides for the election and duties of the Code Au- 
thority. 

Art. XI. — Sets forth trade practiceg that are considered unfair 
methods of competition. 

Art. XII. — Provides against monopolies and monopolistic prac- 
tices or the elimination of, oppression of, or discrimination against 
small enterprises. 

Art. XIII. — Provides for, in accordance with the provisions of the 
Act, the cancellation or modification of any order, license, rule, or 
regulation issued hereunder, by the President of the United States. 

Art. XIV. — Is designed to limit the possibilities of frustrating 
the intent and purpose of the code and its stabilization clause when 
long-term contracts exist. 

Art. XV. — Declares the code to be effective 10 days after approval 
except as provided in Article XIV, Section 1. 

LABOR PROVISIONS OF THE CODE POSSIBLE REEMPLOYMENT 

Stabilization of this trade will in all probability provide a small 
amount of additional employment and benefits will accrue to ship- 
building and ship repair yards for rehabilitation of old equipment. 
The code sets a maximum of 44 hours for shore employees during the 
peak season, representing a decided drop from the 60 hours pre- 
viously worked in some instances. The number of shore employees 
is so small, however, that probably not more than 50 additional shore 
employees will be employed as a result of this maximum hour 
provision. 

In the case of vessel employees, due to the complexities of vessel 
operation and the limited facilities for berthing crews, it was not 
deemed practical to attempt a drastic change in the present schedule 
o,f hours without first making a comprehensive purvey of the labor 
and operating conditions in the trade. 

Provision has been made in the code for this survey which charges 
tlio Code Authority with the responsibility of submitting to the Ad- 
mhiistrator within sixty days after the effective date of the code 
a revised scheduled of minimum wage,s and working conditions 
aboard vessels in the trade which will tend to better effectuate the 



284 



policies of the Act. This survey will be completed before the open- 
ing of navigation in the spring. 

The code further provides the establishment of an Industrial Ke- 
lations Board to deal with matters relating to labor disputes. 

WAGES 

The code provides a minimum of $15.00 per week for shore em- 
ployees with the exception that office boys and girls may be com- 
pensated at 80% of that amount. Few employees in the trade 
are compensated at these minimum rates. The code will effect little 
increase in wages for shore labor except in the case of watchmen 
who are assured of an increased pay envelope for a 30% shorter 
week. 

GENERAL ECONOMIC EFFECT OF TETE CODE 

For the purpose of cooperating in a general plan towards the 
stabilization of the transportation industry as a whole the code pro- 
vides for the establishment of minimum rates, fares, and charges 
for' that portion of the trade not now regulated by State or Federal 
regulatory bodies. 

Provision is made for such minimum rates to be established by 
the majority vote of the members of the code, such minimum rates 
are, however, subject to the disapproval of the Administrator before 
becoming effective. 

When effective these minimum rates may be protested when it is 
felt that they are discriminatory and the Administrator in event of 
protest shall consider the examination and recommendation of the 
Division of Regulations of the United States Shipping Bureau, De- 
partment of Commerce, or the Interstate Commerce Commission, 
before making his final decision. 

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 
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 tends 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 promotmg the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production, by increasing the consumption 
of industrial and agricultural products through increasing purchas- 
ing power, by reducing and relieving uneraploj^ment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

(b) The Inland Water Carrier Trade in the Eastern Division of 
the United States, operating via the New York Canal System nor- 
mally employs less than 50,000 employees ; and is not classified by me 
as a major industry. 



285 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, includinf;^ without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that The Canal Carriers Asso- 
ciation is a trade group truly representative of the aforesaid Trade; 
and that The Canal Carriers 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 w^ill 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. ' 

Respectfully, 

Hugh S. Johnson, 

A dminis trot or. 
February 6, 1934. 



CODE OF FAIK COMPETITION FOE THE INLAND WATER 
CAKRIEE TEADE IN THE EASTEEN DIVISION OF THE 
UNITED STATES OPEEATING VIA THE NEW YOEK 
CANAL SYSTEM 

Article I — Purpose 

To effectuate the policies of Title I of the National Industrial 
Eecovery Act the following provisions are submitted as a Code of 
Fair Competition for the Inland Water Carrier Trade in the East- 
ern Division of the United States operating via the New York Canal 
System 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 

" Eastern Division of the United States " includes all inland 
waters within the territory between Eastport, Maine, and Key West, 
Florida, westward to, but not including, the Mississippi waterway 
system or the Great Lakes, but including the St. Lawrence Eiver. 

" Inland Water Carrier Trade " or '• trade ", as used herein, means 
the transporting of freight or passengers by water via the Ncav York 
Canal system or the St. Lawrence Eiver to or from ports in the 
Eastern Division of the United States and the Great Lakes, includ- 
ing intermediate ports on the New York Canal System, but exclud- 
ing, however, the trade engaged solely in the transportation of 
petroleum products. 

"' Member of the trade " includes, but v>'ithout limitation, any indi- 
vidual, partnership, association, corporation, or other form of enter- 
prise operating owned or chartered vessels in the trade either as an 
emplojau' or on his or its behalf. 

" Member of the Code " means any member of the trade to whom, 
in accordance with the provisions herein, a Certificate of Participa- 
tion has been issued. 

'•Act ", "Administrator ", and " President ", as used herein, means, 
respectively, the National Industrial Eecovery Act, the Adminis- 
trator for Title I of the Act, and the President of the United States. 

" Emergency " means that situation wiiereby a danger or menace 
to the safety of a vessel, cargo, life, or property exists, or v.diere the 
interruption of continuous processes would invoke an undue hard- 
ship upon a member of the trade by undue and excessive increase 
of operating costs. 

" Employee " means any individual engaged in the trade, however 
compensated, except a member of the trade. " Shore employee " 
means an employee in the trade who is not a member of the crew 
of a vessel, and " vessel employee " means an employee in the trade 
who is a member of the crew of a vessel. 

Article III — Coordination 

1. The Administrator may at his discretion make tliis Code a 
division or subdivision of a general Code of Fair Comjietition for 
the Shipping Industry. 

(286) 



287 

2. The Administrator may CDordinate the provisions of this Code 
of Fair Competition with rtdatcd regulations, codes, or agreements, 
respecting other transportation media. 

Akticle IV — Participation 

1. Any member of the trade shall be eligible to receive a Certifi- 
cate of Participation by filing written assent to the provisions of this 
Code and agreeing to share in the proportional expenses thereof as 
provided for in Appendix I. 

2. Coniinencing tliirty da.ys after the effective date of this Coclo 
every bill of lading, dock receipt, or other shipping document issued 
by a member of the Code shall bear the following notation : " Sub- 
scriber to, and participant in, the Code of Fair Competition for the 
Inland Water Carrier Trade in the Eastern Division of the United 
States operating via the New York Canal System No. ." 

Article V — General Labor Provisions 

1. 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 otlier concerted activities for the purpose of col- 
lective bargaining or other mutual aid or protection; no employee 
and no one seeking employment shall be required as a condition of 
employment to join any company union or to refrain from joining, 
organizing, or assisting a labor organization of his own choosing ; em- 
ployers shall comply with the maximum hours of labor, minimum 
rates of pay, and other conditions of employment, approved or 
prescribed by the President. 

2. No member of the trade shall employ any person under eighteen 
years of age; provided, however, that persons sixteen years of age 
or over may be engaged as office or clerical employees. 

3. No employer shall reclassify employees, or duties of occupations, 
or engage in other subterfuge in such manner as to defeat the pro- 
visions and purpose of the Act and of this Code. 

4. No provision of this Code shall supersede any State or Federal 
law which imposes more stringent requirements regulating the age 
of employees, wages, hours of work, or safety, health, sanitary, or 
general working conditions, or insurance or fire protection, than are 
provided herein. 

5. Employers shall post copies of the parts of this Code pertatin- 
ing to wages, hours of labor and general labor provisions in places 
accessible to their employees. 

6. There shall be established by the Administrator an Industrial 
Kelations Board for the trade consisting of an equal number of rep- 
resentatives of employers and employees to deal with all matters in 
the trade relating to labor disputes. The creation and functioning 
of this Board, including the selection of the representatives of em- 
ployees, siiall be in accordance with Section 7 of the Act. Where a 
majority agreement cannot be reached the Board shall select, or in 
the event of no selection the Administrator shall appoint, an im- 
partial chairman to render a decision. If no truly representative 



288 



labor organization exists the employee members of such Board may, 
upon request of the Administrator, be chosen by the Labor Advisory 
Board of the National Recovery Administration. The employer 
representatives shall be chosen by the Code Authority. The Indus- 
trial Relations Board may establish such subsidiary agencies consti- 
tuted in like manner as it finds necessary. Tliis section shall not be 
deemed to provide final arbitration of labor disputes unless both 
parties thereto assent. 

Article VI — Hours of Labor 

1. No shore employee, except outside salesmen, solicitors, and 
■watchmen shall be permitted to work in excess of forty hours in 
any one week, between December 1st and April 1st; nor in excess of 
forty-four hours in any similar period between April 1st and 
December 1st. 

2. No shore employee engaged in the capacity of watchman shall 
be permitted to work in excess of fifty-six hours in any one week. 

3. The provisions as to hours of labor as provided herein shall 
not apply to those emploj-ees in a managerial, supervisory, or execu- 
tive capacity^ wlio receive $35.00 or more per week ; or to ship keepers 
on vessels in laid-up or inoperative status. 

4. The maximum hours of labor of vessel employees shall be in 
accordance with the schedule of working conditions provided for in 
Article VII, Section 5. 

5. The maximum hours of labor prescribed herein shall not apply 
to any employee engaged on emergency work, provided that any 
employee required to work additional hours under the exemption 
allowed by this article shall be compensated for such additional time 
worked at one and one half times the normal rate of pay. 

Article VII— Wages 

1. No shore employee shall be paid at the rate of less than $15.00 
per week except office boys and girls who may be compensated at not 
less than eight}^ percent of that amount, provided that the total 
number of those so compensated shall not exceed five percent of the 
total number of office employees with a minimum of two. 

2. No shore watchmen shall be paid less than forty cents per hour. 

3. Tlie minimum monthly rate of pay for vessel employees with 
subsistence ^ and suitable living quarters shall be as follows : 





Tug 


Class of vessel 


Rank 


Tug 


Class of vessel 


Rank 


Motor 

or 
steam 
vessel 


Non- 
pro- 
pelled 
vessel 


Motor 

or 
steam 
vessel 


Non- 
pro- 
pelled 
vessel 


Captain.- . . 


$200. 00 
150.00 

60.00 
160.00 
140.00 
125.00 

90.00 


$200.00 
150. 00 

50.00 
160.00 
140. 00 
125. 00 

90.00 


$90.00 


Cook and steward 

Messboys . .. .. 


$70. 00 
50.00 


$70.00 
50.00 
70.00 
90.00 
70.00 
70.00 
40.00 








Deckhand .— . 




Watchmen 








Wheelsman 






First assistant engineer-.- 




Oilers 


76.06 
70.00 
40.00 








Firemen . . 




Radio operator. .... 




Shin kefinersl _ 


$40.00 









• This rate allowed only on vessels in laid-up inoperative status. 



* Not provided to employees on nonpropelled vessels or ship keepers. 



289 

The foregoin*^ minimum wage schedule shall be effective only 
until superseded by an adjusted wage scale as provided for herein, 
provided however, that in no event shall rates of pay existing 
November 15, 1933, be reduced, 

4. Within 10 days after the effective date of this Code each 
member of the trade shall submit a report to the Code Authority on 
the wages and working conditions in effect on the vessels operated 
by that member. 

5. The Code Authority upon receipt of this information shall 
compile an adjusted schedule of minimum wages for all classifications 
of vessel employees on all types of vessels operating within the 
limits of this code, and compile a schedule of working conditions 
which will tend to better effectuate the declared policy of the Act. 
The Code Authority shall submit such schedule of wages and work- 
ing conditions to the Administrator within sixty days after the 
effective date of this Code. 

6. Such schedule when approved by the Administrator shall be- 
come a part of this code and a violation thereof by a member of the 
trade shall be a violation of the code. 

Article VIII — Tariffs 

The Inland Water Carrier Trade has been in a chaotic state for 
a number of years due to the serious and unrestrained competition 
both from within the trade itself and with competing transportation 
media. To end these destructive practices provision must be made 
for the establishment of minimum rates, fares, and charges by the 
members of the trade. 

That a need for such regulation exists is borne out by a report 
of the Interstate Commerce Commission of August 5, 1933, which 
reads in part — 

the unrestrained and destructive competition between motor carriers, between 
water carriers, and of both with rail carriers, is not only having an unduly 
depressing effect upon the revenues of the rail carriers but is exerting a 
disorganizing intiueuce upon business in general and tending to prevent the 
maintenance of a stable and uondiscriuiinatory rate adjustment by the rail 
carriers. These conditions will undoubtedly exist as long as interstate motor 
and water carriers are exempt from requirements that their rates be published 
and maintained on a reasonably stable and nondiscriminatory basis. 

Until such time as the Congress has been enabled to study such 
recommendations as may be submitted to it and enact appropriate 
legislation, the following provisions are made in this Code of Fair 
Competition for the purpose of effecting stabilization of the trade. 

1. (a) The Code Authority shall immediately designate a Tariff 
Committee composed of three members of the Code to deal with 
rates, fares, and charges. This committee shall endeavor to effect 
agreements with competing transportation media on a differential 
basis under rail rates, and shall give due regard to the lowest 
reasonable cost of service in determining minimum tariffs. 

(b) Such lowest reasonable cost shall comprehend fair and reas- 
onable rates of pay to labor and include all other items of expense 
and overhead as determined by cost-accounting methods approved 
by the Code Authority and by the Administrator. 



290 

2. The members of the Tariff Committee shall make an analysis 
of the tariff situation and shall obtain from the members of the 
trade the data requisite to enable the Committee to take into account 
the factors necessary to the determination of such minimum tariffs. 

3. The Tariff Committee shall submit to the members of the trade 
the proposed minimum tariffs within sixty days from the effective 
date of the Code. Upon approval of a three-fifths majority of the 
members of the code, avIio shall vote upon the basis of tonnage car- 
ried during the preceding year, or as otherwise determined by the 
Code Authority subject to the approval of the Administrator, these 
minimum tarilfs, after approval bj- the Code Authority, shall be 
filed with the Administrator and become a part of this Code subject 
to the review and disapproval of the Administrator. These mini- 
mum tariffs shall, however, be subject to review .and modification 
by the Administrator in event of protest. 

4. Should the necessity for such review arise, the Administrator 
shall consider the examination and recommendation of the Division 
of Regulation of the United States Shipping Board Bureau of the 
Department of Commerce or the Interstate Commerce Commission. 
The decision of the Administrator, however, after such notice and 
hearing as he may specify, shall be final. 

5. Nothing herein shall appl}^ to rates, fares, or charges estab- 
lished under the jurisdiction of Federal or State regulatory bodies. 

6. Adjustments of these minimum tariff's ma}^ be made at any time 
by the Code x\uthority in the manner as hereinbefore provided, sub- 
ject to review and disapproval by the Administrator. 

7. To meet foreign competition the Code Authority may, as it 
appears necessary, reduce the minimum tariff's provided for l^^rein, 
and shall notify the xVdministrator of such reduction. 

Article IX — Statistics and Reports 

1. Members of the trade, when requested, shall furnish to the 
Code Authority such information as may be necessary for the proper 
administration of this code, and to acquaint and keep the President 
informed as to the observance or nonobservance of the provisions of 
this code, and as to whether such members of the trade are effectu- 
ating and taking the necessary action to attain the declared policy 
of the Act, and these data shall be available in the office of the 
secretary of the Code Authority for inspection by the members of 
the code. 

2. The Code Authority shall not require a member of the trade to 
disclose trade secrets or names of customers. 

3. Failure of any member of the trade to furnish the information 
required by the Code Authority, substantially in the form requested, 
shall constitute a violation of the code. 

4. Members of the trade, however, shall have the right to refuse 
to divulge information of a confidential nature to anyone except the 
Administrator. 

5. The Code Authority or the Administrator may verify the infor- 
mation furnished b}^ any member of the trade through an examina- 
tion of the pertinent records of such member by a disinterested certi- 
fied public accountant designated by the Code Authority or by the 



291 

Administrator. The cost of such verification shall be considered an 
expense of administering the code. The Administrator may also 
verify information furnished by a member of the trade through his 
own agents. 

6. In addition to the information required to be submitted to the 
Code Authority there shall be furnished to Federal and State 
agencies such statistical information as the Administrator may deem 
necessary for the purposes recited in Section 3 (a) of the Act; pro- 
vided, that nothino^ in this Code shall relieve any member of the trade 
of any existing ooligations to furnish reports to any government 
agency. 

Article X — Administration 

1. For the purposes of administration of this code there shall be 
constituted a Code Authority consisting of not more than five mem- 
bers to be elected from the members of the trade as hereinafter 
provided. 

2. The Administrator in his discretion may appoint not more than 
three additional members without vote to represent such groups or 
governmental agencies as he may designate. Such members, if and 
when appointed, shall serve for a term of from six months to one 
year, and their appointments shall be so arranged that they shall not 
expire at the same time. 

3. The members of the Code Authority provided in Section 1, shall 
be elected by the eligible members of the trade within ten days after 
the effective date of the Code, under the auspices of the Trade Asso- 
ciation submitting the code. Three members of the Code Authority 
shall be elected, the basis of voting to be tonnage carried during tlia 
preceding year ; two members of the Code Authority shall be elected 
by a majority of the eligible members of the trade, each member 
casting one vote. 

4. In order that the Code Authority shall at all times be truly 
representatives of the trade and in other respects comply with the 
provisions of the Act, the Administrator may provide such heariivs 
as he may deem proper ; and thereafter if he shall find that the Code 
Authority is not truly representative or does not in other respects 
comply with the provisions of the Act, may require an appropriate 
modification in the method of selection of the Code Authority. 

6. Each trade 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 Admin- 
istrator true copies of its articles of association, bylaws, regulations, 
and any amendments when made thereto, together with such other 
information as to membership, organization, and activities as the 
Administrator may deem necessary to effectuate the purposes of the 
Act. 

6. The Code Authority shall have all the duties and powers per- 
mitted by the Act, including, but without limitation, the making of 
such rules and regulations, the appointing of such coimnittees. the 
employing or designating of such agents and the making of inquiries 
or investigations as may be necessary; and shall cooperate wath the 
Administrator, with full power to represent the trade in effectuating 
the policies of the Act and the provisions of this code. 



292 

7. If the Administrator shall determine that any action of the 
Code Antliority 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 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. 

8. 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 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. 

9. 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 administration. Such pro- 
portional expenses shall be based on tonnage carried, and such 
assessment shall be at the rate of 1^/2 cents per ton of 2,240 pounds, 
and a rejjort of the tonnage carried, with a check or payment for 
the member's share of expenses, shall be filed with the Code Author- 
ity within 15 days after the close of each calendar month. These 
assessments are subject to review by the Administrator ; and changes 
as conditions may require may be made by the Code Authority, sub- 
ject to review by the Administrator. 

10. A member of the trade shall be eligible to vote to elect the 
Code Authority if such member has notified the Administrator, or 
the Canal Carriers Association at its headquarters. New York. N.Y., 
that he desires to participate in this Code of Fair Competition, as 
provided for in Appendix I attached hereto. 

Article XI — Trade Practices 

It shall be an unfair method of competition and a violation of the 
provisions of this Code for any member of the Trade : 

1. To give or accept rebates, refimds, discounts, demurrage allow- 
ances other than tariff provisions ; gratuities in any form, or to make 
discount payments or returns of any nature or description directly 
or indirectly on shipments, contracts, or refunds on any cargo of any 
nature whatsoever, or to employ any person, firm or corporation 
as the representative through whom or to whom a payment of 
compensation shall serve as any rebate, payment or return. 

2. To sign a receipt for goods in good condition when the goods 
for which such receipt is given are in other than good condition. 
Any receipt for goods except in good condition shall specify and note 
the actual condition of the goods for which such receipt is given. 

3. To pay freight brokerage respecting cargoes transported by a 
member of the trade. None of the provisions of this section shall 



293 

appl}'', however, to the booking of grain cargoes, and a commission 
not to exceed 2i/^ percent may be paid for booking grain cargoes. 

4. To fail to pay assessments as provided in Article X, Section 9. 

5. (a) Each member of the trade shall book all cargoes in his own 
name with the right to sublet the contract to other mem.bers of the 
trade at not less than the minimum tariffs filed less five percent, 
(b) All agency agreements entered into after the approval date of 
this code shall be tiled with the Code Authority and shall be subject 
to the regulations of said Code Authority (regulations to be ap- 
proved by a three-fifths majority of the members of the code voting 
on the basis of tonnage carried) subject to review and disapproval 
by the Administrator. A violation of this section shall be a viola- 
tion of this code. 

Aeticle XII — ^Monopolies 

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

ArticltE XIII — Modification 

1. This code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions of subsection (b) of Section 10 of the Act, from time to time, 
to cancel or modify any order, approval, license, rule, or regulation 
issued under said Act. 

2. This code, except as to provisions required by the Act, may be 
modified, or extended as to territory, on the basis of experience or 
changes in circumstances, such modifications to be based upon appli- 
cation to the Administrator and such notice and hearing as he shall 
specify and on aj)proval by the Administrator shall become a part 
of this code. 

Article XIV — Adjustments 

1. All contracts made after the approval date of this code shall 
conform to a form of contract prescribed by the Tariff Committee 
and approved by the Code Authority. 

2. All members of the trade who claim exemptions from the tariff 
provisions herein on the basis of unfilled or unexpired contracts 
shall submit such contracts to either the Code Authority or the 
Administrator for determination as to their bona fide character; 
and the Code Authority or the Administrator shall endeavor to 
promote an equitable adjustment of the terms and conditions of said 
contract in conformity with the provisions of the terms of this 
code, but such contracts when so submitted shall be held in confidence. 

Article XV — Eitective Date 

This Code shall become effective on the tenth day after its 
approval by the President, except as otherwise provided herei?t. 

Approved Code No. 266. 
Regist'?y No. 1-117-14. 



APPENDIX I 

(City) 

(Date) 

We (I) assent to the Code of Fair Competition for the Inland Water Carrier 
Trade in the Eastern Division of the United States operating via the New 
York Canal System as approved by the President of the United States on 

the day of 1934, and request a Certificate 

of Participation as provided in said Code, desiring to share in the benefits 
and obligations as provided in the Code. 



(Company) 

(Individual) 

'(Title) 



Address 

(294) 

O 



i 



Approved Code No. 267 
CODE OF FAIR COMPETITION 

FOR THE 

USED TEXTILE BAG INDUSTRY 

As Approved on February 8, 1934 



OKDER 



Approving Code or Fair Competition for the Used Textile Bag 

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 Used Textile Bag 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 hereby order that said Code of Fair 
Competition be and it is hereby approved, provided that the Code 
Authority shall appoint a committee which shall make a study of 
minimum wages in the industry looking toward measures which will 
enable an increase in such minima, and shall report such study, 
with recommendations, to the Administrator prior to December 31, 
1934. 

Hugh S. Johnson, 
Adinimstraior for Indxbstrial Recovery. 

Approval recommended : 
A. D. Whiteside, 

Division Administrator. 

Washington, D.C, 

February <9, 193Jf. 

38811° 376-34 34 (295) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the hearing on the Code of Fair Compe- 
tition for the Used Textile Bag Industry, held in the Banquet 
Room of the Carlton Hotel, on December 13, 1933. The Code which 
is attached was presented by duly qualified and authorized repre- 
sentatives of the industiy, conxplying with the statutory require- 
ments, said to represent over 85% by volume and 50% by number 
of the industry. 

In accordance with the customary procedure every person who 
had filed a requast for an appearance was freely heard in public, 
and all statutory and regulatory requirements were complied with. 

THE INDUSTRY 

The industry comprises about 200 concerns having an investment 
in 1932 of approximately $13,500,000. In 1929 the industry pro- 
vided employment for 6,000 workers. This figure has fallen to 
4,000 employees in 1933. The aggregate annual sales have fallen 
from $100,000,000 in 1929 to $65,000,000 in 1932. 

PROVISIONS OF THE CODE 

The Code provides a minimum wage for males in the North of 
321/2^, in the South 271/2^; for females in the North 271/2^, in the 
South 221/2?'- The Code further provides that differentials existing 
on July 15, 1933, between wages above the minimum shall be main- 
tained and in no event shall wages be reduced because of any re- 
duction in the number of worldng hours of employees. According 
to the division of Research and Planning average wages in this 
industry will be increased by 25% in the North and up to 50% in 
the South. 

Hours of work are limited to 40 hours per week and 8 hours per 
day, w^ith the following exceptions: 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; 
truck drivers and shipping crews are permitted to work 48 hours per 
week; maintenance employees are permitted to work 44 hours jjer 
week; employees in a supervisory capacity receiving $35.00 or more 
per week, outside salesmen and watchmen are not limited as to 
hours; employees on emergency repair work are not limited as to 
hours, but are to be paid time and one third for all overtime work. 
A study made by the division of Research and Planning i'lflicates 
that the effect of this Code will be to reemploy in this industry all 
but 7% of those employed during 1929. 

(296) 



297 

Representation on the Code Authority is provided for all mem- 
bers of the industry. The Trade Practices incorporated in the 
Code have received the support of all members of the industry and 
should tend to increase uniformity of practice. 

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 
purposes of Title I of the National Industrial Recovery Act, in- 
cluding 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 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 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 lim- 
itation 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, 

A dmmis trator. 
February 8, 1934. 



CODE OF FAIR COMPETITION FOR THE USED TEXTILE 

BAG 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 Used Textile Bag Industry and shall be 
the standard of fair competition for such Industr}^ and shall be bind- 
ing upon every member thereof. 

Article II — Definitions 

1. The term " Used Textile Bag Industry " as used herein, is de- 
fined to include the buying, handling, grading, processing, for resale 
l^urposes, and/or selling of used burlap and cotton bags. Dealers 
handling used burlap and cotton bags along with other commodities 
and operating under the code for the " Scrap Iron, Non-Ferrous 
Scrap Metals and Waste ^Materials Trade ", are not included within 
the above definition of the Industry as far as the collection and grad- 
ing of used textile bags are concerned. 

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 manu- 
facturing the products of the Industry. 

3. The term " emploj^ee " as used herein includes, but without limi- 
tation, 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 emploj^ee is compensated or employed. 

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 Admin- 
istrator for Industrial Recovery. 

6. The term " South " as used herein includes the states of Vir- 
ginia. North Carolina, South Carolina, Georgia, Florida, Alabama, 
Mississippi, Arkansas, Louisiana, Oklahoma, Texas, Maryland, Ten- 
nessee, and Kentucky. 

7. The term " North " as used herein includes all of the territory 
of the United States except that portion included under the term 
" South." 

Article III — Hours 

1. No emploj'^ee, except a.s hereinafter provided, 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. 

(298) 



299 

2. The maximum hours fixed in the foregoing section shall not 
apply to — 

(a) Office employees, who shall be permitted to work forty-eight 
(48) hours in any one week, provided, however, that the number of 
hours worked per week over a period of two (2) months shall average 
not more than forty (40) hours per week. 

(b) Truck drivers and shipping crews, who shall be permitted 
to work not in excess of forty-eight (48) hours in any one week. 

(c) Employees exclusively engaged as engineers, electricians, fire- 
men, or machinery repairmen, who shall be permitted to work not 
in excess of forty-four (44) hours in any one week. 

(d) Employees in an executive or managerial capacity, regularly- 
receiving not less than thirty-five dollars ($35.00) per week, watchi 
men and outside salesmen. 

(e) Employees on emergency maintenance or emergency repair^ 
work, involving breakdown, or protection of life and propert}^, 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. 

3. No employees shall work or be permitted to work for a total 
number of hours in excess of the number of hours prescribed for each 
weelv and dav, whether employed by one or more employers. 

4. Whenever any member of the Industry employs the services 
of members of his family, all such persons must be regarded as 
employees, and shall be subject to all provisions contained in this 
Code affecting employees of members of the Trade. 

Article IV — Wages 

1. The following minimum wage rates are established for 
employees : 

North South 

Males, per hour 32V2«^ 271/.0 

Females, per hour 27V20 22Mi4 

(a) These differentials shall be based on substantially different 
employment, and 

(b) Female employees performing substantially the same work as 
male employees shall receive the same rates of pay as male employees. 

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. Differentials existing on July 15, 1933, between wages rates paid 
various classes of employees receiving more than the mmimum wage 
specified above shall be maintained; wages of employees receiving 
more than the minimum wages specified above will not be reduced 
below the rates existing on July 15, 1933. notwithstanding any reduc- 
tion in the number of working hours of such employees. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the Industry, nor anyone under eighteen (18) years of age at 
operations or occupations hazardous in nature or detrimental to 
health. The Code Authority shall submit to the Administrator 



300 

before March 1st, 1934, a list of such occupations. In any State an 
employer shall be deemed to have complied mth this provision, if 
he shall have on file a certificate or permit duly issued by the author- 
ity in such State, empowered to issue employment or age certificates 
or permits showing that the employee is of the required age. 

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

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

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 members of the Industry shall comply with 
any laws of such State imposing more stringent requirements on em- 
ployers, regidating the age of employees, wages, hours of work, or 
health, fire protection, or general working conditions than under 
this Code. 

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees or use any other subterfuge so as to 
defeat the purposes of the Act. 

7. Each emplo3'er shall post in a conspicuous place of easy and 
continuous access to employees, the Articles dealing with hours, 
wages, and general labor provisions of this Code. 

8. No home work shall be permitted in the Industry. 

9. Every employer shall make reasonable provisions for the safety 
and health of his employees at the place and during the hours of 
their employment, furnishing a safe, sanitary, heated, and properly 
ventilated work place. Six months after the effective date of this 
Code, the Code Authority shall submit recommendations for setting 
up standards of health and safety for employees in this Industry. 

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. The Code Authority shall include as members : 

(a) Twelve (12) individuals to be selected by the Board of Direc- 
tors of the National Burlap Bag Dealers Association. 

(b) Such additional members, not exceeding three, as may be 
approved from time to time by the Administrator, to be elected in 
a manner to be approved or prescribed by the Administrator by 
nonmembers of the Association who shall comply with Section 5 
of this Article. 

(c) Not more than three (3) additional members, without vote 
to be appointed by the Administrator to represent such groups 
or interest or such governmental agencies as he may designate. 



301 

2. Duties and powers of Code Authority : 

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

(a) To make rules and I'egulations necessary for the adminis- 
tration of this Code within the Industry. 

(b) To make investigations as to the functioning and observance 
of any provisions of this Code at its own instance, or on complaint 
by any person affected, and to report the same to the Administrator. 

(c) To require, from time to time, from each person in the Indus- 
try, reports in such form and containing such information as the 
Administrator may prescribe, in order that he may be kept informed 
with respect to the observance of this Code. Except as otherwise 
provided in the Act, any reports filed in accordance with these pro- 
visions, shall be confidential, and the data of one employer shall 
not be revealed to any other employer. 

(d) To present to the Administrator, from time to time, recom- 
mendations based on conditions in the Industry, as they may develop, 
which will tend to effectuate the operation of the provisions of this 
Code. Such recommendations when approved by the Administrator 
after such notice and hearing as he shall specify shall have the same 
force and effect as the other provisions of this Code. 

(e) To submit supplementary codes of fair trade practices for 
the Industry which, when approved by the Administrator, shall have 
the same force and effect as this Code. 

(f) 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, tlie 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 Admin- 
istrator. 

3. Each trade association directly or indirectly participating in 
the selection or activities of the Code Authority shall : 

(a) Impose no inequitable restrictions on membership. 

(b) Submit to the Administrator true copies of its articles of 
association, bylaws, regulations, and any amendments, when made 
thereto, together with such other information as to membership, 
organization, and activities as the iVdministrator may deem necessary 
to effectuate the purposes of the Act. 

4. In order that the Code Authority shall at all times be truly rep- 
resentative 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. 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 



302 

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 volmne of business and/or such other factors as may be 
deemed equitable to be taken into consideration. 

6. 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.^ 

Article VII — Trade Practices 

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

1. 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. Nothing herein shall be con- 
strued 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 dehnecl. 

2. 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. 

3. The false 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 con- 
tent, or preparation of such product. 

4. Withholding from or inserting in the invoice statements which 
make the invoice a false record, wholly or in part, of the transaction 
represented on the face thereof. 

5. The use of advertising (whether printed, radio, display, or of 
any other nature) or other representation which is inaccurate in any 
matei'ial particular or in any way misrepresents any commodity (in- 
cluding its use. trade mark, grade, quality, quantity, origin, size, 
material, content, or preparation), or credit terms, values, policies, 
services, of the nature or form of the business conducted. 

6. Inducing the breach of an existing contract between a com- 
petitor and his employee or customer or source of supply, or inter- 
fering with or obstructing the performance of such contractual 
duties or services. 

7. To enter into contracts for the sale of any of the products 
of the Industry the terms of which are not specific as to quantities, 
prices, and delivery dates. 

8. The sale or offering for sale of any products of the Industry 
on a basis of guarantee against decline in price. 

^ See paragraph 2 of order approving this Code. 



303 
ARTICLE VIII — ^Modification 

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

2. 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 circmiistances ; 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 after such notice 
and hearing as he shall specify. 

Article IX — Monopolies, Etc. 

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

Article X — Effective Date 

This Code shall become effective on the 10th day after its 
approval. 

Approved Code No. 267. 
Registry No. 203r-3-03. 



Approved Code No. 268 
CODE OF FAIR COMPETITION 

FOR THE 

SECONDARY ALUMINUM INDUSTRY 

As Approved on February 8, 1934 



ORDER 



Approving Code of Fair Competition for the Secondary Alumi- 
num 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 Secondary Aluminum 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 Decembei 
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 VII, subparagraphs (a), (b), (c), (d), 
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 sixty 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, 
Adrtvinistrat&r for Industrial Recovery. 

Approval recommended : 
K. M. Simpson, 

Division Administrator. 

Washington, D.C, 

February 5, 19SJ^. 

38810° 376-33 34 (305) 



REPORT TO THE PRESIDENT 

The President, 

The 'White House. 

Sir: The original Code of Fair Competition for the Secondary 
Aluminum Industry Avas submitted August 15, 1933 (revised Sep- 
tember 28, 1933', by the Aluminum Research Institute, an unincor- 
porated membership society representing in excess of 80% of known 
members of the Industry and volume of production. The hearing 
was conducted in conjunction with the hearing for the Aluminum 
Industry on September 28, 1933. The Code was revised during the 
recess of this hearing and is submitted in its present form for 
approval. Every person who requested an appearance was properly 
heard in accordance w^th statutory and regulatory requirements. 

The Industry is nationwide in character. The factories are located 
with economic relationship to sources of aluminum scrap or alumi- 
num bearing waste for refining and remelting and subsequent sale 
of industry products. In the main the plants are located east of the 
Mississippi River (St. Louis included), together with a few facto- 
ries on the Pacific Coast. The Industry supplies ingots of secondary 
aluminum and aluminum alloys to the Steel Industry for use as a 
dioxidizer, to the Chemical Industry for the Non-Ferrous Foundries 
for the production of aluminum or aluminum alloy castings, to the 
Automotive Industry for the casting of crank cases, etc., to the 
Building Industry for decorative trmi, either rolled or cast, and to 
the Household Industry for rolled or cast cooking utensils, household 
equipment, etc. 

The Industry came into being about 1910 with the increasing 
amounts of aluminum scrap that were available. Through the 
offices of the Aluminum Research Institute processes for refining of 
aluminum scrap and aluminum-bearing waste have been developed 
so that the Industry products for many applications are substan- 
tially equivalent to virgin aluminum. The growth of the Industry 
and its relationship to virgin aluminum is indicated in the following 
table. Based upon these figures (compiled by the Department of 
Commerce Bureau of Mines) the position of the Secondary Alumi- 
num Industry is that the price of scrap aluminum and aluminum- 
bearing material may one day dominate the market price for the 
virgin material, as is the case in other kindred metal industries. It 
is interesting to note that the Aluminum Company of America rep- 
resents less than 5% activity in the Secondary Aluminum Industry. 

(306) 



307 



Year 


Primary 


Second- 
ary 


Percent- 
age 


Year 


Primary 


Second- 
ary 


Percent- 
age 


1931 


Tons 

88, 777 
114,517 
112,500 
105, 000 
79, 860 
72, 380 
69, 850 
75, 130 


Tons 
30, 300 
38, 600 
48, 400 
47, 800 
46, 200 
44, 200 
44, 000 
27, 000 


34 
34 
43 
46 
58 
61 
51 
36 


1923 


Tons 
64, 350 
36, 960 
26, 950 

68, 860 
89, 760 

112,200 
99, 770 

69, 410 


Tons 
21, 300 
16,200 
8,900 
15,500 

18, 691 

15, 050 

16, 100 

19, 300 


33 


1930 


1922 


44 


1929 


1921 


33 


1928 


1920 


22 


1927 


1919 


20 


1926 


1918 


13 


1925 


1917. 


16 


1924 . 


1916 


27 









The major portion of the tonnage of secondary ahiminum is pro- 
duced in phmts primarily engaged in the manufacture of secondary 
aluminum and its alloys. However, a very considerable portion of 
the total tonnage is produced in plants that operate primarily for 
the production of alloys of some other nonferrons metal base. In 
such latter plants which produce a variety of alloys of diiferent 
base, employees usually work interchangeably. It is therefore prac- 
tically impossible to state the precise number of employees that are 
engaged in the production of secondary aluminum. In the original 
Code that was offered by the Secondary Aluminum Industry, an 
estimate of 500 employees was made and this figure is believed to be 
approximately correct, as of August 1, 1933, although the total num- 
ber would now exceed this figure because of the substantial increase 
in employment which has been caused by this Industry's compliance 
with the terms of the President's Reemployment Agreement with 
exceptions as approved by the N.R.A. 

A careful survey, made in September, showed that the average 
number of hours worked in the Secondary Aluminum Industry dur- 
ing the week of July 23, 1933, was 55.45 hours. At a meeting of 
the members of Aluminum Research Institute held on August 11, 
1933, at which the first draft of a tentative Code of Fair Competi- 
tion for the Secondary Aluminum Industry was prepared and ap- 
proved, a resolution was unanimously adopted that all members 
would anticipate the Code provisions for a 40-hour week and a 35^ 
per hour minimum wage by putting these provisions into effect as 
of August 21, 1933. To the credit of this Industry, this was lived 
up to by the members of Aluminum Research Institute, thus making 
these increases in wages and reductions in working hours per week 
take effect prior to the action of the N.R.A. Policy Board in approv- 
ing exceptions to the P.R.A. The September survey furthed showed 
that during the week of September 10, 1933, following the labor 
readjustments of August 21st, the average hours per week worked 
in the plants of this membership, was 39.9 hours, a decrease in average 
hours per week, as compared with the average hours during the 
week of July 23, of 27.9%. 

Another survey was made in November to judge the results of the 
increase in wages and the decrease in working hours. To avoid 
confusion and to eliminate guesswork, all members were asked to 
report on all factory employees, whether or not these employees were 
engaged exclusively upon the production of secondary aluminum. 
The months of June and October, before and after the voluntary 
increase in wages and decrease in hours, were chosen for the com- 



308 

parison. This careful survey indicated the following : that the 
total number of this membership's emploj^ees in October had in- 
creased by 50.52% over the total number in June; that the total 
October payroll had increased 19.60% over the total June payroll; 
that the average minimum wage rate of October represented an 
18.37% increase over the average June minimum wage rate of 
29.57^ : and that these substantial contributions to industrial recovery 
had been made in the face of a 7.28% decrease in production in 
October as compared with June. Reports from a representative 
cross section of the industry indicate there were more factory em- 
ployees on the payrolls of tiie members of this Institute in October 
1933 than the average number employed during the peak year of 1929. 

The Aluminum liesearch Institute was organized in June 1929, 
and has actively and continuously functioned since that date. 
Among tlie outstanding accomplishments of the Aluminum Research 
Institute has been the formulation of a basic cost-finding procedure 
which is susceptible of expansion to meet the most intricate demands 
for the details of the costs of production and distribution. The 
Aluminum Research Institute has also successfully carried to con- 
clusion, the formulation of standard methods (which are and al- 
ways will be subject to improvements and extensions) for the 
sampling and analyzing of aluminum and its alloys. Copies of 
these standards are in the hands of all American ahiminum users 
who maintain their own chemical laboratories, ail technical col- 
leges and all commercial chemists who give particular attention to 
the chemistry of metals. Copies of this book have also been fur- 
nished upon request to inquirers in practically all the principal 
countries of the world. 

Article I. Purpose. — States the purpose of the Code. 

Art. II. Defmtlons. — Accurately defines specific terms applicable 
to the Secondary Aluminum Industry as used in this Code. 

Art. III. Hours. — The maximum hours are limited to 40 hours 
per week for employees engaged in tiie processing of products and 
labor incident thereto except that during any six weeks in any six 
months' period employees shall be permitted to work a maximum of 
48 hours in any one week. Watchmen shall be permitted to work a 
maxinnun of 56 hours per week with one day ofi' per week. Office, 
salaried, and other employees not covered above, who receive less 
than $35.00 per week, shall not be permitted to work in excess of 
40 hours in any one week except that during any six weeks in any 
six months" ])erioil such employees shall be permitted to work a maxi- 
mum of 48 hours in any one week. A normal work day shall not 
exceed 8 hours. Employees engaged in an executive, managerial, or 
supervisory capacity, who receive more than $35.00 per week, and 
employees, other than those engaged in processing or labor operations 
d-irectiy incident thereto, are not subject to any hourly limitations. 
The maximum hours shall not apply in case of emergencies or re- 
pairs where the safety of life and health or the protection of prop- 
erty necessitates longer hours. 

Art. IV. Wages. — The mininuun wage for employees engaged in 
the processing of products or in any labor incident thereto is at the 
rate of 35 cents per hour. Female employees shall be paid the same 
rate of pay as male employees for doing the same work or for per- 



I 



309 

formino; the same duties. No person employed in clerical or office 
work shall be paid IcvSs than at the rate of $15.00 per week, except 
that office boys and fprls may be paid a minimum wajre of 80% of 
the established minimum for office employees. Such office boys and 
girls shall be limited to 5% of the total number of office em[)loyees 
in any given establishment, provided, liowever, that each establish- 
ment is entitled to at least one such employee. The established min- 
imum rate of pay (Article IV-a) for the work performed in any 
period shall appl}^ irrespective oi whether an employee is actually 
compensated on time rate, piecework, or other basis. Provision is 
also made for the employing of handicapped persons, who shall be 
paid not less than 80% of the minimum w^age scale. 

Article V. General Lah&r Provisions. — Provides that no employer 
shall employ any person under IG years of age and that no person 
under 18 3'ears of age shall be employed at operations or occupations 
which are hazardous in nature or dangerous to health. This article 
also sets forth the mandatory provision respecting the rights of 
employees to organize and bargain collectively. This article also 
provides for matters having to do with reclassification of employees, 
standards for safety and health, the observance of State laws, and 
posting of complete copies of this Code so that they are accessible 
to employees. 

Art, VI. Achninistration. — Establishes a Code Authority consist- 
ing of five (5) persons, four (4) of whom shall be selected by the 
Aluminum Research Institute and one (1) of whom shall be selected 
by the associate members of said Institute. In addition to the five 
(5) members named above, there may be one or three representa- 
tives, without vote, to be appointed by the Administrator to serve 
without expense to the Industry for such terms as he may specify. 
In addition to the organization of the Code Authority, the powers 
and duties thereof are also outlined in this article. 

Art. VII. Marketing and Trade Practice Rules. — Sets forth fair 
trade practices for the Industry. 

Art. VIII. Export Trade. — No provision of this Code relating to 
]:>rices or terms of selling, shipping, or marketing, shall apply to 
export trade or sales or shipments for export trade. 

Art. IX. Modi-jicatioiv. — This Code and all provisions thereof are 
expressly made subject to the right of the President, in accordance 
with 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. Provision is also made that at the election 
of the Administrator this Code may become a supplemental Code of 
Fair Competition for the Aluminum Industry, if and when such a 
Code is adopted and approved by the President for such industry, 
provided that the Code Authority herein constituted shall remain 
the Code Authority for the Industry engaged in the production and 
manufacture of secondary aluminum and its alloys. 

Art. X. Monopolies. — No provision of this Code shall be so ap- 
plied as to permit monopolies, or monopolistic practices, or to elimi- 
nate, oppress, or discriminate against small enterprises. 

Art. XL Effective Date. — This Code shall become effective two 
weelvs after its approval by the President. 



310 

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) The Code will promote the policies and purposes of Title I 
of the Act, including removal of obstructions of 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 
supervisions, by eliminating unfair competitive practice, by promot- 
ing 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 througli increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and otherwise rehabilitating industry. 

(b) Said industry 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 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 Aluminum Research 
Institute was and is an industrial group truly representative of the 
industr}^; and that said association imposed and 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, therefore, this code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A drrdrdstratOT, 
February 8, 1934. 



CODE OF FAIR COMPETITION FOR THE SECONDARY 
ALUMINUM 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 industry engaged in the production and manufacture of 
secondary aluminum and its alloys, and upon approval by the Presi- 
dent, its provisions shall be the standard of fair competition for such 
industry and shall be binding upon every member thereof. 

Article II — Definitions 

(a) The term " Industry engaged in the production and manu- 
facture of secondary aluminum and its alloys " or " the industry " 
as used herein includes all producers who recover metal from alu- 
minum scrap and residue and the refining and alloying thereof. 

(b) Tlie t^rm " member of the industry " includes, bift without 
limitation, any individual, partnership, association, corporation or 
other form of enterprise engaged in the industry either as an em- 
ployer or on his own behalf. 

(c) The t€rm "employee" as used herein includes any and all 
persons engaged in the industry however compensated excepting a 
member of the industry. 

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

(e) 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. 

(f ) Population for the purposes of this Code shall be determined 
by reference to the latest Federal census. 

Article III — Hours 

(a) Maximiunn hours. — No employees shall be permitted to work 
in excess of 40 hours in any one week or 8 hours in any 24-hour 
period, except that during any 6 weeks in any 6-month period, 
employees shall be permitted to work a maximum of 48 hours in 
any one week, and except as" herein otherwise provided. Watch- 
men shall be permitted to work a maximum of 56 hours per week 
with one day off per week. 

(b) Hours for clerical and office employees. — No person employed 
m clerical or office work shall be permitted to work in excess of 40 
hours in any one week, except that during any 6 weeks in any 6- 
raonth period such employees shall be permitted to work a maxi- 

(311) 



312 

mum of 48 hours in any one week. A normal day shall not exceed 
8 hours. 

(c) Exceptions as to hours. — The provisions of this Article shall 
not apply to outside salesmen or to employees engaged in executive, 
supervisory, or technical capacities who earn not less than $35 per 
week. In case of an emergency, employees may work up to 10 hours 
in any one day, provided that they be paid time and one half for 
all hours in excess of 8 hours per day. The maximum hours shall 
not apply in the case of emergencies where the safety of life and 
health or the protection of property necessitates longer hours, pro- 
vided that time and one half the regular rate be paid for all hours 
in excess of 8 hours per day. 

(d) Emi)loyment ^y Several Employers. — No employer shall 
knowingly permit any employee to work for any time which, when 
totaled with that already performed with another employer or em- 
ployers in this industry, exceeds the maximum permitted herein. 

Article IV — Wages 

(a) Maximv.'m Wages. — No employees shall be paid in any pay 
period less than at the rate of 350 per hour, except as otherwise 
herein provided. 

(b) %IinimU'm Wages for Clerical and Office Employees. — No per- 
son employed in clerical or office work shall be paid less than at the 
rate of $15 per week of 40 hours, except that office boys and girls 
maj' be paid a minimum wage of 80% of the established minimum for 
office employees. Such office boys and girls shall be limited to 5% of 
the total number of office employees in any given establishment ; pro- 
vided, however, that each establishment is entitled to at least one 
such employee. 

(c) Pieceivork Com fens at ion — Minimum Wages. — The estab- 
lished minimum rate of pay (Art. IV (a) for the work performed 
in any pay period, shall apply, irrespective of whether an employee 
is actually compensated on time rate, piecework, -or other basis. 

(a) Handicapped Persons. — A person whose earning capacity is 
limited because of age or physical or mental handicap may be em- 
ployed in 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 and for such hours as shall 
be stated in the certificate. Each employer shall file with the Code 
Authoritj^ a list of all such persons employed by him. Such author- 
ity shall be guided by the instructions of the United States Depart- 
ment of Labor in issuing certificates to such persons. Such em- 
ployees shall be paid not less than 80% of the minimum wage 
schedule. 

(e) Unless a readjustment has already been made since June 16, 
1933, equitable adjustments shall be made of the wages of employees 
now receiving more than the minimum wage as herein provided. 
Such equitable adjustments shall mean that differentials existing 
prior to the formation of this Code shall be maintained for all em- 
ployees. Within thirty days each member shall report to the Ad- 
ministrator through the Code Authority all such readjustments. 



313 

Article V — General Lahor Provisions 

(a) Ch'iM Labor. — No person under sixteen (16) years of af]^e shall 
be employed in the industry. No person under eight<'en (18) years 
of a<2:e shall be employed at operations or occupations which are 
hazardous in nature or dang-erous to health. The Code Authority 
shall submit to the Administrator for approval before May 1, 1934, 
a list of such operations or occupations. In any State an employer 
shall be deemed to have complied with this provision as to age if 
he shall have on file a certificate or permit duly signed by the Author- 
ity in such State empowered to issue employment or age certificates 
or permits showing that the employee is of the required age. 

(b) Provision's from ths Act. — In compliance with Section 7 (a) 
of the Act it is provided : 

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

(2) That no employee and no one seeking employment shall be 
re(iuired 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 

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

(c) Reclasslfcathn of Employees. — No employer shall reclassify 
employees or duties of occupations performed or engage in any 
other subterfuge for the purpose of defeating the purposes or pro- 
visions of the Act or of this Code. 

(d) Sfamkirds 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. 

(e) State Laws. — No provision in this Code shall supersede any 
State or Federal law which imposes on employers more stringent 
requirements as to age of employees, wages, hours of work, or as 
to safety, health, sanitary, or general working conditions, or insur- 
ance, or fire protection, than are imposed by this Code. 

(f) Posting. — All employers shall post complete copies of this 
Code in conspicuous places accessible to employees. 

Article VI — Organization, Powers, and Duties of Code Authority 

(a) There shall forthwith be constituted a Code Authority con- 
sisting of five (5) persons, four (4) of whom shall be selected by 
the Aluminum Research Institute and one of whom shall be se- 
lected by the Associate members of said Institute. 

(b) In addition to the membership as above provided there may 
be a representative or representatives without vote but in no case to 



314 

exceed three (3) appointed by the Administrator to serve without 
expense to the industry for such terms as he may specify, to act as his 
representative or representatives or as a representative or representa- 
tives of such interested groups as he may specify. 

(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, to- 
gether with such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

(d) In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with 
the provisions of the Act, the Administrator may 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 ap- 
propriate modification in the method of selection of the Code 
Authority. 

(e) Members of the industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authority and to 
partici])ate in the selection of the members thereof by accepting their 
reasonable share of the cost of its preparation and administration- 
Such reasonable share of the expenses of preparation and adminis- 
tration shall be determined by the Code Authority, subject to review 
by the Administrator on the basis of volume of business and/or such 
other facts as may be deemed equitable. 

(f) 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, ex- 
ercising 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. 

(g) The Code Authority shall have the following further powers 
and duties, the exercise of which shall be reported to the Adminis- 
trator and shall be subject to his right on review to disapprove any 
action taken by the Code Authority. 

(1) To insure the execution of the provisions of this Code and 
provide for the compliance of the industry with the provisions of 
the Act. 

(2) To adopt By-Laws and rules and regulations for its pro- 
cedure and for the administration and enforcement of the Code. 

(3) To approve recommendations for exceptions to the marketing 
provisions of this Code. 

(4) To obtain from members of the industry such information 
and reports as are required for the administration of the Code and 
to provide for submission by members of such information and 
reports as the Administrator may deem necessary for the purposes 
recited in Section 3 (a) of the Act, which information and reports 



315 

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. 

(5) 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 Au- 
thority 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. 

(6) 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. 

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

(8) 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 — Marketing and Trade Practtice Rules 

(a) Each member of the industry shall file with the Code Author- 
ity the prices at which he is offering his products for sale, which 
prices shall not be less than his current cost as determined by a uni- 
form system of cost accounting as provided for in section (k) of 
this Article, provided that any member of the industry may file 
below his current cost so determined in order to meet the competi- 
tion of any other member of the industry who has filed prices in 
accordance with this section. 

(b) In determining current cost, the cost of raw materials used 
in the manufactured product shall be computed on the basis of the 
published market prices as published in any daily trade paper thereof 
prevailing as of the date of sale. 

(c) Any member of the industry desiring to change the price or 
prices of his product shall notify the Code Authority of all changes 
to be made three (3) full business days previous to quoting such 
change; provided, however, that if at any time the current cost of 
a member of the industry becomes gi'eater than his filed price or 
prices, such member shall immediately file a new price or prices 
with the Code Authority in accordance with all of the provisions 
of section (a) of this Article, such new price or prices to become 
effective immediately. 

(d) Published prices shall include terms of payment, quantity 
discounts, length of bookings or contracts and F.O.B. point, and 
such other provisions as may be necessary to fully inform the trade 
of all conditions of sale.^ 



^ See paragraph 2 of order approving this Code. 



316 

(e) Terms of sale shall be fully stated and strictly adhered to and 
invoice shall show same. 

(f) There shall be no discrimination between customers. Differ- 
ence in price based upon quantity shall not constitute discrimination. 

(g) Prices and discounts shall be openly and publicly announced, 
(h) A uniform sales contract shall be established and used by the 

industry, subject to the approval of the Administrator. 

(i) All contracts shall be equally binding upon both parties and 
are not subject to repudiation. 

(j) The following are unfair trade practices and the violation of 
any one or more of them constitutes a violation of this Code : 

1. Selling below openly and publicly announced prices and terms 
as provided for in Sections (a) and (c) of this Article. 

2. Secret allowances or secret rebates of any kind. 

3. False dating of contracts or billings. 

4. Allowances by any name or of any nature which are not justi- 
fied by the facts or are made in collusion with the buyer, for the 
purpose or effect of defeating the provisions of this Code. 

5. Storage of products in consumers' Warehouses, or sales on con- 
signment to consumers, except under circumstances to be defined 
by the Code Authority, where peculiar circumstances of the industry 
make the practice advisable. 

6. Special services or privileges to certain purchasers when not 
extended to all purchasers under like terms and conditions. 

7. Making false or misleading statements about competitors' 
products, or regarding the character, management, or financial 
standing of a' competitor. 

8. False or misleading advertising, mislabeling, or misbranding. 

9. The adoption of brands (either in design or name) which so 
closely approximate the brands or trade marks of a competitor as to 
deceive or confuse a buyer by similarity of appearance or brand. 

10. Inducing or attempting to induce a breach of cancellation of 
a contract between a competitor and his customer. 

11. Maliciously enticing away the employees of a competitor with 
the purpose and intent of unduly hampering, injuring, and embar- 
rassing a competitor in his business. Nothing herein shall prevent 
any employee from offering his service to a competitor, or prevent 
any member from employing an employee of another member where 
the initiative in such change of employment comes solely from the 
employee. 

12. No member of the industry shall give, permit to be given, or 
directly offer to give, an3^thing of value for the purpose of in- 
fluencing or rewarding the action of any employee, agent or repre- 
sentative of another in relation to the business of the employer of 
such employee, the principal of such agent or the represented party, 
without the knowledge of such employer, principal, or party. Com- 
mercial bribery provisions shall not be construed to prohibit free and 
general distribution of articles commonly used for advertising except 
so far as such articles are actually used for commercial bribery as 
hereinabove defined. 

13. Guaranty against decline in price. 



317 

14. Substitution of any ^rade of aluminum and its alloys superior 
in conij)o.sition to that specified, for the purpose of furnishing such 
material at prices lower than would otherwise prevail. 

15. Entering into quantity contracts with buyers without obliga- 
tion on their part to take delivery of the quantities specified in the 
contract or on the quotation for the purpose of giving special unwar- 
ranted prices. 

16. Payment of brokerage in excess of the usual and customary 
conunission with the purpose or effect of defeating the provisions 
of this Code. 

IT. Failure to report any statistics or data required by the pro- 
visions of this Code. 

18. I\iblishing or circulating unjustified or unwarranted threats 
of legal proceedings 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. 

19. Requiring that the purchase or lease of any goods be a 
prerequisite to the purchase or lease of any other goods. 

20. Violation of any of the fair-practice rules, regulations, or 
requirements of this Code. 

(k) Cost accounting. Every member of the industry shall use a 
cost-accounting system which conforms to the principles of and is 
at least as detailed and complete as the uniform method of costing to 
be prescribed by the Code Authority and approved by the Admin- 
istrator. 

Article VIII — Export Trade 

No provision of this Code relating to prices or terms of selling, 
shipping, or marketing, shall apply to export trade or sales or ship- 
ments for export trade of unfabricated products of this industry. 

Article IX — Moditication 

(a) This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions of subsection (b) of Section 10 of the Act, from time to 
time, to cancel or modify any order, approval, license, rule, or 
regulation issued under said Act. 

(b) This Code, except as to provisions required by the Act, may 
be modified on the basis of experience or changes in circumstances, 
such modifications to be based upon application to the Administrator 
and such notice and hearing as he shall specify, and to become effec- 
tive on approval of the President. 

(c) At the election of the Administrator this Code of Fair Com- 
petition may become a supplemental code to, or be coordinated 
with, the Code of Fair Competition for the Aluminum Industry, 
if and when such a Code is adopted and approved by the President 
for such industry, provided that the Code Authority herein con- 
stituted shall remain the Code Authority for the industry engaged 
in the production and manufacture of secondary aluminum and its 
alloys. 



318 

Akticle X — Monopolies 

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

Article XI — Effective Date 

This Code shall become effective two weeks after its approval 
by the President. 



Approved Code No. 268. 
Registry No. 1203-1-03. 



O 



Approved Code No. 269 
CODE OF FAIR COMPETITION 

FOR THE 

CARBON BLACK MANUFACTURING INDUSTRY 

As Approved on February 8, 1934 



ORDEK 



I 



Approving Code of Fair Competition for the Carbon Black 
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 Carbon Black 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 ; provided, however, 
that the provisions of Article V, Sections 1 and 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 pending my further order. 

Hugh S. Johnson, 
Admimstrator for Industrial Recovery. 

Approval recommended : 
K. M. Simpson, 

Division Admini^strator. 

Washington, D.C, 

February 8, 193Jf. 

39069° 376-35 34 (319) 



KEPOET TO THE PRESIDENT 

The President, 

The White House. 
Sir : The proposed Code of Fair Competition f o-r the Carbon Black 
Industry was submitted to the Administrator on August 23, 1933, by 
the Natural Gas Products Association, representing approximately 
93% of the Industry. A hearing was conducted in Washington on 
Thursday, November 16, 1983. and the Code was revised aft^r the 
hearing and is submitted in its present form for approval. All per- 
sons who requested appearances were properly heard in accordance 
with statutory and regulatory requirements. 

LABOR PROVISIONS 

Hours of work are limited to 40 hours per week in any six-week 
period, 48 hours in any one week, and 8 hours in any one day with 
the following exceptions : executive, managerial, and supervisory em- 
ployees, travelling salesmen, watchmen at idle plants and employees 
receiving over $35.00 per week. Emergency maintenance and repair 
employees are also excepted in cases in which life or property is en- 
dangered or in case of mechanical breakdowns. 

Minimum wages for common labor are as follows : 40 cents per hour 
in Louisiana, 50 cents per hour in Oklahoma and Stephens County, 
Texas, and 55 cents per hour elsewhere. Over 75% of the workers 
are in the 55 cents minimum area. The differentials between rates 
for skilled work and common labor minimums are to be equitably ad- 
justed. Office workers are to receive not less than 40 cents per hour. 
The usual clauses for the protection and safety of employees and em- 
ployers are included. 

These provisions should bring about a decided improvement in 
labor conditions in the industry inasmuch as a 65-hour week and a 
35-cent per hour wage were not uncommon in the early months of 
this year. 

EXCESS CAPACITY 

A demoralized price structure has existed in the Industry for the 
last three years. According to reports of the Bureau of Mines car- 
bon black has sold below the cost of production throughout this 
period. Stocks on hand at the end of 1932 amounted to 91% of sales 
in 1929 and existing plant capacity will permit the annual production 
of 175% of total 1929 sales. Of 71 plants now in existence only 50 
were in operation at the end of 1932. This condition is due in large 
part to the fact that this natural resources industry is closely re- 
lated to the production of natural gasoline. In the interests of 
economical use of natural gas and the orderly development of the 
carbon black industry the Code Authority is given power, subject 
to the approval of the Administrator, to pass upon the advisability 
of increasing plant capacity at any particular time in any particular 
locality. 

(320) 



321 



ECONOMIC EFFIDCT OF THE CODE 



The Industry is comprised of about 24 concerns, having an invest- 
ment in 1938 of a[)proxiniately $40,()0{),000. The rubber industry is 
the largest consumer of carbon bhick, and quantity consumption has 
held up well during the depression, but as a result of the price 
structure annual sales have fallen from about $25,000,000 in 1929 
to less than $7,000,000 in 1932. Volume has picked up in 1933, but 
present contracts and extraordinarily heavy stocks have held prices 
down. Approximately 1,300 men are now employed in the industry. 
The hours provided for in the Code have resulted in a reduction of 
average hours worked from 65 in 1929 to less than 41 at the present 
time. This has resulted in a 25% increase in employment, and the 
present hourly rates are substantially above those paid in 1929. 

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 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 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) Tlie 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. 

I have, therefore, approved this Code. 
Respectfully, 

Hugh S. Johnson, 

Adtrdnistraior. ' 
February 8, 1934. 



CODE OF FAIR COMPETITION FOR THE CARBON BLACK 
MANUFACTURING INDUSTRY 

Article I — Purpose 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following j^rovisions are submitted as a Code of Fair 
Competition for the Carbon Black Manufacturing Industry, and 
upon approval by the President, shall be the standards of fair com- 
petition for this industry, and shall be binding upon every member 
thereof. 

Article II — Definitions 

Section 1. The term " carbon 'black " includes any black pigments 
produced in whole or in part from natural gas, casing-head gas, or 
residue gas by the impinging of a flame upon a channel, disk, or 
plate. 

Sec. 2. The term " member of the indu-stn/ "" as used herein includes 
all those engaged in the manufacture of carbon black, either as em- 
ployers or on their own behalf. 

Sec. 3. The term " industry " as used herein includes the manu- 
facture and original sale of carbon black. 

Sec. 4. The term " cniployee " as used herein includes all those en- 
gaged in the industry however compensated, except a member of the 
industry. 

Sec. 5. The term " employer " as used herein includes any member 
of the industry by wdiom any such employee is compensated or 
employed. 

Sec. 6. The terms '''' President ''"'^ ^''■Act''\ and '"'■ Administrator ''\ as 
used herein mean the President of the United States, Title I of the 
National Industrial Recovery Act, and the Administrator for In- 
dustrial Recovery, respectively. 

Article III — Labor 

Section 1. From and after the effective date no employee (except 
executive, managerial, and supervisory employees, traveling sales- 
men, watchmen at idle plants and employees receiving over $35.00 per 
week) shall be employed for more than an average of 40 hours per 
week in any six-week period. No employee shall be employed for 
more than 48 hours in any one week, nor more than 8 hours in any 
one day, except above mentioned classes and except maintenance and 
repair emploj-ees in case of emergencies when life or property is 
endangered, or in case of mechanical breakdowns. 

Sec. 2. The following minimum wages are hereby established from 
and after the effective date : The minimum wage for common labor 
shall be forty cents per hour in Louisiana, fifty cents per hour in 

(322) 



323 

Oklahoma and Stephens County, Texas, and fifty-five cents per hour 
in all other portions of the United States. For clerical, laboratory, 
and office employees not less than forty cents per hour. The differ- 
entials between the rates for skilled jobs and the minimums established 
in this Code for connnon labor shall be equitably adjusted. Overtime 
work of maintenance and repair employees shall be compensated at 
the rate of time and one half. It is agreed that this para<;ra])h es- 
tablishes a guarant.eed minimum rate of l)ay, regardless of whether 
the employee is compensated on the basis of a time rate or on a piece- 
work basis. 

Sec. 3. 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 operations or occupations which are haz- 
ardous in nature or . dangerous to health. The Code Authority 
shall submit to the Administrator before INIarch 31, 1934, a list of 
such operations or occupations. In any State an employer shall be 
deemed to have complied with this provision as to age if he shall 
have on file a certificate or permit duly signed by the Authority in 
such State empowered to issue employment or age certificates or per- 
mits showing that the employee is of the required age. 

Sec. 4. Xo employer, for the jDurpose of defeating the purposes 
or provisions of the Act or of this Code, shall reclassify employees 
or duties of occupations performed or engage in any other subterfuge. 

Sec. 5. 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. 

Sec. 6. No provision in this Code shall supersede any State or 
Federal lavr which imposes on employers more stringent requirements 
as to age of employees, wages, hours of work, or as to safety, health, 
sanitary, or general w^orking conditions, or insurance, or fire pro- 
tection, than are imposed by this Code. 

Sec. 7. All employers shall post complete copies of the labor pro- 
visions of this Code in conspicuous places accessible to employees. 

Sec. 8. From and after said effective date, no Member of the In- 
dustry shall charge a rental of more than twelve dollars per month in 
Louisiana or sixteen dollars per month in any other part of the 
United States to any employee for any one family house, including 
water, gas, and such other services as are customarily furnished by 
the Member of the Industry without extra charge in connection 
therewith, nor engage in any subterfuge for the purpose of defeating 
the intent of this provision. No employee shall be required to lease 
or occupy a house owned or controlled by any Member of the 
Industry. 

Sec. 9. (a) Employees in the Industry shall have the right to 
organize and bargain collectively through representatives of their 
own choosing,. and shall be free from interference, restraint, or coer- 
cion 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 pro- 
tection. 

(b) No employee in the Industry and no one seeking employment 
therein shall be required as a condition of employment to join any 



324 

company union or to refrain from joining, organizing, or assisting 
a labor organization or his own choosing. 

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

Article IV — Production 

Section 1. Each Member of the Industry shall, insofar as is 
possible without infringing obligations existing on November 28th, 
1933, for the purchase of gas, so regulate its current production of 
all ordinary grades of carbon black as to prevent the same from 
exceeding its current deliveries. In case at the end of any period 
of six calendar months the quantity of such black held in storage 
by any Member of the Industry shall have increased (except through 
purchase of black or unavoidable purchase of gas) such member 
shall reduce its storage by the same amount during the next six cal- 
endar months, and failure so to do shall be deemed an unfair method 
of competition within the meaning of the Act. Provided, however, 
that in case any Member of the Industry is prevented from regu- 
lating its production to the full extent herein required by reason of 
such existing obligations for the purchase of gas, and this results 
in an unavoidable increase in his inventory, the other members shall 
not be compelled to restrict their inventories below a percentage of 
increase equal to that of such member. 

Sec. 2. The present capacity of carbon black factories of the 
United States, as a whole, is in excess of present or any prospective 
needs. Therefore, any material increase in the plant capacity of the 
Industry shall be made only after approval of such increase by the 
Code Authority, whose decision shall be subject to the approval of 
the Administrator; provided, however, that such approval shall not 
be construed to supersede or modify in any way State statutes or 
regulations. The production of carbon black by any authorized new 
factory capacity for the first six months that it shall be in operation 
shall not be subject to the provisions of the first Section of this 
Article. 

Article V — Prices 

Section 1. Each Member of the Industry shall, on such date as the 
Code Authority shall designate, publish and file with the Secretary 
of said Code Authority a statement of the minimum price to cus- 
tomers thereafter to be quoted by it for the standard grades of carbon 
black sold by it. No Member of the Industry shall make or quote 
any price lower than that filed until five days after filing with the 
Secretary of the Code Authority a new minimum price ; nor shall any 
Member of the Industry or its agent offer or grant- any terms, in- 
ducements, rebates, or conditions having the effect of reducing the 
cost to the customer below its minimum price at the time in effect 
hereunder; nor shall any Member of the Industry or its agent until 
such five days shall have elapsed suggest, intimate, or promise to a 
customer at any time a future price below such minimum price. The 
Secretary shall immediately notify each Member of the Industry by 



325 

telegraph and by letter of all initial minimum prices filed and of all 
price chano;es thereafter made by any such Member.' 

Sec, 2. If the initial minimum price filed by any Member of the 
Industry be lower than that filed by another Member, such other 
Member shall have the right to reduce its price to the lower rate by 
notification to the Secretary of the Code Authority effective imme- 
diately. And upon any existing price being reduced by any Member 
of the Industry, upon five days' notice as hereinbefore provided, any 
other Member shall be at liberty to adopt said new minimum price 
as its own as soon as the same shall become effective, and such Mem- 
ber shall give the Secretary written notice of its adoption of said new 
minimum price at or before the time such action is taken. The fore- 
going provisions of this Article are subject to the following 
exceptions : 

(a) In making sales of carbon black to another concern which is 
bound by the provisions of this Code, a Member of the Industry may 
allow any discount it may see fit. 

(b) No Member of the Industry shall sell any carbon black as 
substandard without first giving the Code Authority at least five 
daj^s' notice thereof, and giving the Code Authority an opportunity 
to investigate the true grade of the carbon black so to be sold. No 
carbon black found by the Code Authority not to be substandard 
shall be sold by a Member of the Industry at a price less than the 
price of said Member on file for standard carbon black.^ 

Sec. 3. Any violation of this Article shall be deemed an unfair 
competitive practice. 

Sec. 4. The provisions of this Article shall not apply to contracts 
made prior to the approval of this Code. True copies thereof shall 
be filed with the Code Authority within ten days after the effective 
date of the Code. 

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

Authority 

Section 1. A Code Authority for the administration of this Code 
is hereby constituted consisting of one member to be appointed by 
each member of the Industry who is or shall become a member of the 
National Gas Products Association, and in addition thereto there 
may be one or more members, without vote, and without expense to 
the Industry, to be appointed by the Administrator. The first and 
succeeding terms of office of any member appointed by the Adminis- 
trator shall be for a term of six months from the date of appointment. 

Sec. 2. The National Gas Products Association or any other asso- 
ciation directly or indirectly participating in the selection or activi- 
ties 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, bylaws, regulations, and 
any amendments when made thereto, together with such other infor- 
mation as to membership, organization, and activities as the Ad- 
ministrator may deem necessary to effectuate the purposes of the 
Act. 

^ See paragraph 2 of Order approving' this Code. 
' See paragraph 2 of Order approving this Code. 



326 

Sec. 3. In order that the Code Authority shall at all times be 
truly representative of the Industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe 
such hearings as he may deem proper; and thereafter if he shall 
find that 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 or 
constitution of the Code Authority. 

Sec. 4. The expenses of administration of the Code shall be deter- 
mined and assessed against all members of the Association by the 
Code Authority in an equitable manner, subject to review and modi- 
fication by the Administrator. 

Sec. 5. The Code Authority shall have the following powers and 
duties, the exercise of which shall be reported to the Administrator 
and shall be subject to his right to review and to disapprove any 
action taken by the Code Authoritj^ : 

(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, rules, and regulations for its government 
and 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 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. The Code Authority may also gather such other statis- 
tics as it may deem advisable and make and publish from time to 
tune such forecasts of future demand as it may see fit. 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, employ such 
experts, and/or ag-ents 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 responsi- 
bilities under this Code and that such trade associations and agencies 
shall at all times be subject to and comply with the provisions 
hereof. 

(e) To make recommendations to the Administrator for the coor- 
dination of the administration of this Code with such other codes, 
if any, as may be related to the Industry. 

(f ) To secure from members of the Association 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. 



327 

(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 reconmiend to the 
Administrator measures for industrial planning, including stabili- 
zation of employment. 

(i) The Code Authority shall have the right in its rules or 
regulations, to determine and provide for the following : 

(1) To fix the term of office of the members of the Code Authority 
selected by members of the Industry which in the absence of other 
provisions shall be from the effective date of this Code and until 
June 15, 1035. 

(2) To provide for the filling of vacancies in the membership of 
the Code Authority which are api^ointed by IMembers of the Indus- 
try, which in the absence of other provisions shall be filled by the 
designation of the Member of the Industry who designated the 
original Member. In the event of the failure or refusal of such 
Member of the Industry to appoint a new Member of the Code 
Authority within thirty days after such vacancy shall occur, the 
Code Authority may in its discretion fill such vacancy. 

(3) From time to time to determine the number of members of 
the Code Authority requisite to constitute a quorum, wdiich in no 
event shall be less than a majority thereof. 

(4) To adopt its own rules of procedure, fix its own meeting dates, 
and place or places of meeting, and elect its own chairman and its 
secretary, who need not be members of the Code Authority. 

(5) To provide that all actions of the Code Authority except such 
as require unanimous vote shall be either (a) by a majority vote of 
the members present at a meeting at which a quorum shall be present 
or (b) without a meeting on any question submitted in writing to the 
members of the Code Authority by written vote of a majority of the 
whole number of the members thereof. 

(6) To provide that members of the Code Authority may desig- 
nate alternates to act for them at meetings of the Code Authority. 

(j) From time to time by unanimous vote of those present to make 
such recommendations as it shall deem consistent with and in fur- 
therance of the provisions of this Code or for the modification or 
amendment thereof. 

(k) Upon complaint of interested parties, or upon its own initia- 
tive, to inquire into and investigate the operation of this Code and 
any violations thereof and to aid the Administrator in the adminis- 
tration of this Code and the Act. 

Article VII — 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 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. 



328 

Abticle VIII — Monopolies 

Xo 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 — EiTEcrnvE Date 

This Code shall become effective on the second Monday, which is 
not a holiday, after its approval by the President. 

Approved Code No. 269. 
Registry No. 709-02. 

o 



Approved Code No. 270 
CODE OF FAIR COMPETITION 

FOR THE 

WOOD HEEL INDUSTRY 

As Approved on February 9, 1934 



ORDER 



Approving Code of Fair Competition For The Wood Heel 

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 Wood Heel 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 
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; provided, however, 
that the provisions of Article VII, section 2 insofar as they pre- 
scribe a waiting period between the filing with the Code Authority 
and the effective elate of revised price lists or revised terms and con- 
ditions of sale be and they are hereby stayed pending my further 
order either within a period of sixty (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 Industrial Recovery. 

Approval recommended : 
W. A. Harriman, 

Division Adniinistrafor. 

Washington, D.C, 

Fehmary 9, 1934. 

39350° 376-40 34 (329) 



REPORT TO THE PRESIDENT 

The President, 

The 'White House. 
Sir: This is a report on the Code of Fair Competition for the 
Wood Heel Industry in the United States, the hearing being con- 
ducted in Washington, D.C., on December 6, 1933. in accordance 
with the provisions of the National Industrial Recovery Act. 

PROVISIOXS ON HOURS AND WAGES 

The maximum hours provided in this Code for employees is forty 
(40) hours per week and eight (8) hours per day. When produc- 
tion demands it a tolerance of five (5) hours per week is allowed 
for not more than eight (8) weeks in each six (6) months' period, 
with one and one third the normal hourlj^ wage for all hours worked 
in excess of eight (8) hours per daj-. 

Emploj'ees classified as set over men, firemen, janitors, shipping 
clerks, and delivery drivers are permitted a tolerance of ten (10) per- 
cent of the normal hours of work. Watchmen are permitted to work 
fifty-six (5G) hours per week. Employees engaged in emergency 
maintenance or repair work and/or in continuous processes upon 
which the employment of other emj^loyees depends are not limited 
but shall be paid one and one third the normal rate for all hours 
worked in excess of fortj'-five (45) hours per week. 

The minimum wage specified for male employees is thirty-seATn 
fend one lialf (371/2) cents per hour in any city over 2o0,000 popula- 
tion and thirty-five (35) cents per hour in any city or jilace of 
250,000 or less and that specified for female employees is thirtj^-two 
and one half (321^4) cents per hour. , 

Learners, not to exceed five (5) percent of the employees and for 
not more than four weeks, may be paid not less than eighty (80) per- 
cent of the prescribed mininnnn. No wages of those paid in excess 
of the minimum of this Code shall be reduced below those paid for a 
normal week prior to June 16, 1933. Neither shall such wages be 
reduced due to a shorter normal week prescribed hy this Code but 
shall be equitably adjusted and reported within thirty (30) days of 
the approval of this ('ode. 

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 

The volume of the output of this industry increased about twenty 
(20) percent from 1928 to 1932 and during the same period the 

(330) 



dollar value decreased about thirty-five (35) percent due to the 
cheaper grade of shoes serviced durinpr the depres^sion years and to 
the extreme price cutting which was generally practiced and which 
resulted in a loss to practically all members of the industry. The 
hours provided in this Code will increase the employment in this 
industr}^ cliiefly in the nonunion sections approximately fifteen (15) 
percent. They are the same maximum hour provisions under which 
the industry has been operating under the President's lleemployment 
Agreement and are more liberal than those effective in unionized 
territory. This industry is highly seasonal in nature, and due to the 
fact that it services the shoe industry, this is largely uncontrollable. 
The provisions for maximum hours must therefore be somewhat in- 
fluenced b}^ the like provisions in the Shoe Industry. 

The minimum wage provisions will not greatly increase the pur- 
chasing power of the employees in this industry, though with equita- 
ble adjustment of wage rates above the minimum as provided their 
purchasing power should be restored nearly to the 1929 level accord- 
ing to the study reported by the Division of Economic Research and 
Planning. Here again the approved wage provisions of the Shoe 
Industry must be recognized as an important factor to be considered. 

Due to price cutting in this industry there has been a high rate of 
mortality among its members. To reduce this rate of mortality dur- 
ing the emergency period the Code provides that the cost of lumber 
shall be figured at the minimum prices established pursuant to the 
Code of Fair Competition for the Lumber and Timber Products 
Industries in calculating costs below which the products may not be 
sold. This provision is intended to prevent the further bankruptcy 
of the industry due to large lumber stocks of distress merchandise 
held by a few of the larger wood heel manufacturers and due to the 
fact that a few members of this industry produce their own lumber 
for making wood heels. Without this provision, a price war would 
continue which would have no social value. 

The final revision of this Code, as of January 4, 1934, which has 
the approval of each of the xV^dvisory Boards and Functional Divi- 
sions of the National Recovery Administration has not been trans- 
mitted before this time due to inequitable provisions Avhich existed 
in the Constitution and Bylaws of the National Association of Wood 
Heel Manufacturers. The said Constitution and Bylaws have now 
been amended so as to correct these inequitable provisions. 

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 
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 i^urpose 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- 



332 

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), b}^ increasing- the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemploj^ment, by impro^ning standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said industry normall)' 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 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 pennit 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, 

AdTninistrator, 
February 9, 1934. 



CODE OF FAIR COMPETITION FOR THE WOOD HEEL 

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 
Wood Heel 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. Wood Heel Industnj. — The term " AVood Heel Indus- 
try " as used herein includes the turning, finishing, and/or sale of 
wood heels by the manufacturer, and such related branches or sub- 
divisions thereof as may from time to time be included under the 
provisions of this Code by the President after such notice and hear- 
ing as he may prescribe, but excludes the finishing of wood lieels by 
Boot and Shoe manufacturers who finish them exclusively for their 
own use in the manufacture of footwear. 

Sec. 2. Member of the Industry. — The term " member of the In- 
dustry " includes, but without limitation, any individual, partner- 
ship, association, corporation, or other person engaged in the in- 
dustry, either as an employer or on his or its own behalf. 

Sec. 3. Employer. — The t^erm " employer " as used herein means 
any employer engaged in the industry. 

Sec. 4. Employee. — The term " employee " as used herein in- 
cludes any and all persons engaged in the industry, however com- 
pensated, except a member of the Industiy. 

Sec. 5. Act and Administrator. — The terms "Act" and "Adminis- 
trator " as used herein shall mean, respectively. Title I of the Na- 
tional Industrial Recovery Act, and the Administrator for Industrial 
Recovery. i 

Sec. 6. Turner. — The term " turner " as used herein shall mean 
those members of the industry who turn wood heels out of lumber 
but who may also finish them. 

Sec. 7. Finisher. — The term "finisher" as used herein shall mean 
those members of the industiy who complete the finishing of wood 
heels but who do not turn them. 

Sec. 8. Association. — The term "Association " as used herein shall 
mean the National Association of Wood Heel Manufacturers. 

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. 

(333) 



334 

Sec. 2. Executive and Snpervkory Employees. — Tlie maximum 
hours prescribed in Section 1 of this Artcile shall not apply to 
executive or supervisory employees receiving thirty-five (35) dollars 
or more in any one week, nor to outside salesmen, provided, however, 
^uch executiA'e or supervisory emploj'ees or outside salesmen emplo^'ed 
in excess of forty (40) hours shall perfoi-m only the normal daties 
of such positions and shall not perform the duties normally per- 
formed by other emploj^ees. 

Sec. 3. Watc/wien. — The maximum hours prescribed in Section 1 
of this Article shall not applj' to watchmen, provided however, that 
watchmen shall not be permitted to work in excess of fifty-six {~yQ) 
hours in an}^ one week. 

Sec. 4. /Set over fuen, Firemen, Janitors, Shipp-iny Clerlxs and 
Delivery Drivers. — Set over men, firemen, janitors, shipping clerks, 
and deliver}^ drivers, shall be permitted to work a tolerance of not 
more thaii five (5) hours over and above the norinal hours of work 
prescribed in Section 1 of this Article : and a tolerance of not more 
than six (6) hours over and above the said hours of work during 
the peak seasons provided in Section 6 of this Article. 

Sec. 5. Emergencies. — The maximum hours of labor shall not ap- 
ply to employees doing emergenc}^ maintenance, and emergency re- 
pair work, or work where restrictions of hours of workers on con- 
tinuous processes w^ould unavoidabh' reduce production or inter- 
rupt emploA'ment of the majority of employees, but in any such 
cases, at least time and one tliird shall be paid for hours worked 
in excess of eight (8) hours in any one day or fortj'-five (45) hours 
per week. 

Sec. 6. Peak Seasomi. — The maximum hours prescribed in Sec- 
tion 1 of this Article shall not apply during seasonal or peak peri- 
ods, but such period shall not exceed eight (8) weeks in any six (6) 
months period, provided, however, that no employee engaged in 
such seasonal operations shall be permitted to v,"ork in excess of 
forty-five (45) hours in ai^y one week. All hours worked in excess 
of eight (8) hours in any one day shall be paid for at one and one 
third times the regular hourly rate. 

Sec. 7. Dual Employment. — No employer shall knowingly en- 
gage anj'^ employee for any time which, when totaled wath that 
already performed with another employer or employers in this 
industry, exceeds the maximum hours prescribed in this Article. 

Article IV — Wages 

Section 1. Minimum Wages. — No male employee of this industry 
shall be paid less than the rate of thirty-seven and one half (371/2) 
cents per hour in any city over 250.000 population nor less than the 
rate of thirty-five (35) cents per hour in any city or place of 
250,000 population or less and no female employee in this industry 
shall be paid less than thirty-two and one half (321/,) cents per 
hour except as stated in (a) and (b). 

(a) All learners may be allowed a four- weeks' apprenticeship 
during which time the rate of pay shall not be less than eighty (80) 
percent of the mininuim prescribed in this xA.rticle. Such appren- 
tices engaged by any employer at any one time shall not exceed (5) 
percent of his factory employees. 



336 

(b) Employers and employees may make mutually Katisfactoiy 
wage agreements covering the employment of the iulirm, partially 
disabled, or physically handicapped, if such emi)loyees do not con- 
stitute more than five (5) percent of the total number of employees 
engaged by any employer at any one time and are paid not less than 
eighty (80) percent of the minimum wage established by this Code. 
Ail such cases shall be reported immediately to the Code Authority. 

Sec. 2. Wage Adjustments. — No employer shall reduce the rate of 
compensation for a normal week for the four weeks ending June 
16, 1933, of emploj^ees receiving in excess of the mininnuu wages 
prescribed in this Article notwithstanding that the hours of the 
normal week for such employees may be hereby reduced. Not later 
than thirty (30) days after the approval of this Code any members 
of the Industry who have not heretofore made equitable adjustments 
of pay schedules in excess of the minimum under the President's 
Reemployment Agreement shall make equitable adjustments of all 
pay schedules. Such adjustments shall be reported to the Code 
Authorit}^ and the Administrator for approval. 

Sec. 3. Female Employees. — Female employees performing sub- 
stantially the same work as malt, employees shall receive the same 
rate of pay as male employees. 

Sec. 4. Piece Work and Mmimum, 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 
any other basis. 

Article V — General Labor Provisions 

Section 1. Child Labor Prohibited. — No person under sixteen 
(16) years of age shall be employed in the Industry. No person 
under eighteen (iS) 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 Feb- 
ruary 28, 1934, 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 
issued by the Authority in such State empowered to issue employ- 
ment or age certificates or permits showing that the employee is 
of the required age. 

Sec. 2. Einfloyees'' Right to Organize. — In compliance with Sec- 
tion 7 (a) of the Act it is provided : 

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

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

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



336 

Sec. 3. Reclassifying Employees. — No employer shall reclassify 
employees or duties of occupations performed or engage in any other 
subterfuge for the purpose of defeating the labor provisions of the 
Act or of this Code. 

Sec. 4. Home Work Prohibited. — All work connected with every 
operation of the Wood Heel Industry shall be j)erformed in the 
factories of the employers. No such work whatever shall be per- 
mitted to be taken to the home of the employees. 

Sec. 5. Safety and Health. — Every employer shall provide for the 
safety and health of his emploj'ees 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 three (3) 
months after the effective date of this Code. 

Sec. 6. State Laws Prevail Where More Stnngent Than Code. — 
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 safetj'^, health, sanitary 
or general working conditions, or insurance, or fire protection, than 
are imposed by this Code. 

Sec. 7. Posting Code. — All employers shall post complete copies 
of this Code in conspicuous places accessible to employees. 

Article VI — Enforcement 

Section 1. Code Aut/iority.— The Code Authority which is hereby 
constituted the agency for administering, in cooperation with the 
Administrator, the provisions of this Code, shall consist of the 
Executive Committee of the Association elected as hereinafter pro- 
vided, and one nonmember of the association. The Association or 
any other 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 Association, By-Laws, 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 effect the purposes of the Act. 

Sec. 2. How composed. — The Code Authority shall consist of 
thirteen (13) members, to be elected as herein provided. The exec- 
utive committee of the Association shall constitute twelve (12) mem- 
bers of the Code Authority and shall be elected as follows: nine (9) 
members shall represent turners, three (3) of whom shall be elected 
by the turners in each geographical area; three (3) members shall 
represent finishers and shall be elected by finishers, one (1) from the 
Western area and two (2) from the New England and Eastern areas. 
The thirteenth (13th) member of the Code Authority shall be elected 
by and from the members of the industry who are not members of 
the Association. The Geographical Areas herein referred to shall 
be (1) the New England Area consisting of the States of Maine, 
New Hampshire, Vermont, Ma.ssachusetts, and Rhode Island; (2) 
the Eastern Area consisting of the States of Connecticut, New York, 
New Jersey, Pennsylvania, and Maryland; and (3) the Western 
Area consisting of all other states not included in the foregoing 
area and territories subject to this Code. Not more than three non- 



337 

votino; members maj'^ be appointed by the Administrator to serve on 
the Code Authority without expense to the Industry for such terms 
as the order of appointment may designate. In the event of resig- 
nation or inability to serve on the part of any elected member of 
the Code Authority such vacancy shall be filled by the appropriate 
members of the industry of the geographical areas in which the 
vacancy occurred. No two members of the Code Authority shall be 
representatives of or financially interested in the same firm, corpora- 
tion, company, or subsidiaries of the same firm, corporation, or 
company which is engaged in this industry. 

Sec. 3. Powers and Duties of Code Authority. — The Code Author- 
ity shall administer the provisions of the Code, secure adherence 
thereto, consider proposals for amendments tliereto, hear complaints, 
and otherwise carry out the purposes of the National Industrial 
Recovery Act as set forth in the Code, subject to the approval of the 
Administrator and to his right on review to disapprove any action 
of the Code Authority. 

Sec. 4. Reports. — A designated agent of the Code Authority may 
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 industr}^ except 
in summary and except to the Administrator or such Governmental 
agencies as he may designate. In addition to inforniation re<iuired 
to be submitted to the Code Authority, 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 Federal and Stat-e agencies as the Administrator may designate ; 
no provision of this code shall relieve any member of the industry of 
any existing obligation to furnish reports to Government agencies. 

Sec. 5. Members of Code Authority Not Partners. — Nothing con- 
tained in this Code shall constitute the members of the Code Author- 
ity partners for any purpose. Nor shall any members of the Code 
Authority be liable in any manner to anyone for an act of any other 
member, officer, agent, or emploj-ee of the Code Authority. Nor shall 
a member of the Code Authority who is exercising reasonable dili- 
gence in the conduct of his duties hereunder be liable to anyone for 
any action or omission to act under the Code, except for his own 
wilful misfeasance or nonfeasance. 

Sec. 6. Code Authority Must Be Refresentatlve. — In order that 
the Code Authority shall at all times be truly representative of the 
Industry and in other respects comply w4th 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 tlie 
method of selection of the Code Authority, or any sub-Code 
Authority. 

Sec. 7. Expenses of Code Authority . — Each member of the Indus- 
try participating in and sharing the benefits of the activities of the 
Code Authority and/or participating in the selection of the members 
thereof, shall pay its reasonable share of the expenses of its adminis- 
tration. Such reasonable share of the expenses of administration 
shall be determined by the Code Authority, subject to review by the 



338 

Administrator, on the basis of volume of business and such other 
factors as may be deemed equitable. 

Article VII — Fair Price Competition 

Section 1. Uniform. Accounting Si/stem. — The Code Authority 
shall formulate or cause to be formulated a uniform accounting 
system which shall be adaptable to the cost accounting procedure 
and to the business of the industry. Such plan shall specify the 
factors which shall be included in determining the allowable costs 
of each member of the industry, provided, however, that the allow- 
able costs of lumber used in the manufacture of wood heels shall 
not be less than the minimum price of the specific kind and grade of 
lumber, as fixed pursuant to the Code of Fair Competition of the 
Lumber and Timber Products Industries. The cost of lumber in 
stock prior to such prices becoming effective shall be included at not 
less than the minimum price of the appropriate kind and grade of 
lumber as fixed pursuant to the Code of Fair Competition of the 
Lumber and Timber Products Industries at the time such prices 
became effective or at the time such lumber is used, whichever is 
lower. The cost of lumber acquired by members of the Industry 
after such prices are in effect shall be included at not less than the 
minimum price so fixed at the time such lumber is stocked or pur- 
chased, or at the time it is used, whichever is lower. Upon approval 
by the Administrator of such a system of cost accounting for the 
Industry complete advice concerning it shall be distributed by the 
Code Authority to all members of the Industry. Within thirty (30) 
days after each member of the Industry has received notice of the 
system of cost accounting so approved no member of the Industry 
shall initiate a selling price for any product of the Industry below 
his own allowable costs, or sell the products of the Industry at such 
prices, or upon such terms or conditions of sale as will result in the 
purchaser's pajdng for such product less than the allowable cost 
thereof to the seller, determined in accordance with the aforemen- 
tioned system of cost accounting, except to meet the competition of 
another member of the Industry, provided that notice of such price 
to meet the competition shall be sent to the Code Authority and pro- 
vided that such competitive price may be used only until such time as 
the Code Authority determines after investigation, and notifies 
such member that sales below his allowable costs are no longer 
necessary to meet competition. 

Sec. 2. Opeyi prices. — ^Within twenty (20) days after the above 
cost accounting system has been approved by the Administrator, each 
member of the Industry shall file with the Code Authority and pub- 
lish to interested parties a price list Individ iiallj'' prepared by him 
for all products of the industry sold or offered for sale by him, to- 
gether M'ith the discount, if any, allowed therefrom, and fixed terms 
of payment. Revised price lists or revised discounts or terms and 
conditions of sale may be filed from time to time thereafter by any 
member of the Industry provided, however, that such revision shall 
be filed with the Code Authority five (5) days in advance of the 
effective date thereof, and provided further that any member of the 
Industry may file revisions of his price lists, or terms, or conditions 



339 

of sale to meet revisions previously filed by other inenibers which be- 
come effective on the same date on which such revised price lists or 
revised terms or conditions of sale of other members shall become 
effective. No member of the industry shall sell or offer for sale any 
products of the Industry at prices lower than the prices noted in his 
price list or on more favorable terms and conditions of sale than 
the terms and conditions of sale pre\iously filed by such member 
with the Code Authority in accordance with the foregoing provisions 
and in effect at the time of such sale.^ 

Akttcle VIII — Unfair Trade Practices 

The following shall be considered unfair trade practices and in 
violation of this Code : 

Rule 1. Cash discounts. — The granting of any cash discount in 
excess of five percent for payments received on or before the twen- 
tieth day of the month following date of shipment or the granting of 
any cash discount whatever for payments received after the twentieth 
of the month following date of shipment. This clause shall become 
operative on the first day of the month following the effective date of 
this Code. 

Rule 2. Notes or trade acceptance. — Acceptance of Notes or Trade 
Acceptances in payment for merchandise without interest or bearing 
interest at the rate of less than the approximate legal rate of interest. 

Rule 3. AUoicmices or credits. — The granting of allowances or 
credits for damages in excess of the value of either blocks or finished 
heels, respectively, supplied to finishing plants or shoe manufac- 
turers. 

Rule 4, In voicing. — The invoicing of a smaller quantity of heels 
than is actually shipped either as a means of giving hidden discount 
from invoice prices, or to anticipate claims for damaged or defective 
heels. 

Rule 5. Secret Rebates. — The granting of secret rebates, discounts, 
or allowances of any kind. 

Rule 6. Mishr abiding. — The misbranding of heels or the wilful 
deception of any customer as to the kind, grade, or quality of heel 
invoiced. 

Rule 7. Giving of Gratuities or Rewards to Eniplogees. — No mem- 
ber of the industry shall give, permit to be given, or directly offer to 
give, anything of value for the purpose of influencing or re^varding 
the action of any employee, agent, or representative of another in 
relation to the business of the employer of such employee, the prin- 
cipal of such agent or the represented party, without the knowledge 
of such employer, principal, or party. Commercial bribery provi- 
sions 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 8. Shipping of Goods on Consignm^7it. — The shipping of 
goods on consignment except on such terms and conditions as may be 
prescribed by the Code Authority. 

' See paragraph 2 of order approving this Code. 



340 

Article IX — Approval of the President 

This Code and all the provisions thereof are expressly made subject 
to the right of the President, in accordance with the provisions of 
Clause 10 (b) of the 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 with- 
out limitations to the right of the President to cancel or modify- his 
approval of this Code or any conditions imposed by him upon his 
approval thereof. 

Article X — Revisions and Additions 

Section 1. Modifications. — Such of the provisions of this Code as 
are not required to be included therein by the National Industrial 
Recovery Act, may, with the approval of the Administrator, be modi- 
fied or eliminated as changes in circumstances or experience may indi- 
cate. It is contemplated that from time to time supplementary pro- 
visions to this Code, or additional Codes, will be submitted for 
approval of the President, to prevent unfair competition in price 
and other unfair and destructive competitive practices and to effect 
the other purposes and policies of Title I of the National Industrial 
Recovery Act consistent with the provisions hereof. 

Sec. 2. Procedure for Modification. — Supplementary provisions or 
modifications of this Code before being recommended to the Admin- 
istrator by the Code Authority, shall be adopted at a regular or 
special meeting of the Code Authority by a two-thirds affirmative 
vote of members of the Code Authority either present in person or 
by proxy. Prior to any such meeting of the Code Authority to con- 
sider supplementary provisions or modifications at least fifteen (15) 
days written notice shall be given to all members of the industry 
which notice shall specify the purpose for which such meeting of the 
Code Authority is called and the supplementary provisions or 
modifications to be considered. 

Article XI — Monopolies 

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

Article XII — Effective Date 

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

Approved Code No. 270. 
Registry No. 325-01. 

o 



Approved Code No. 271 

CODE OF FAIR COMPETITION 



NONFERROUS AND STEEL CONVECTOR MANU- 
FACTURING INDUSTRY (CONCEALED RADIATOR 

INDUSTRY) 

As Approved on February 10, 1934 



ORDER 



Approving Code of Fair Competition for the Nonferrous 
AND Steel Convector Manufacturing Industry (Concealed 
Radiator 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 Nonferrous and Steel Convector Manufac- 
turing Industry (Concealed Radiator Industry), and hearings having 
been held thereon and the annexed report on said Code, containing 
findings with respect thereto, having been made and directed to the 

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, 
February 10, 1934. 

39352° 376-43 34 (34I) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the Non- 
ferrous and Steel Convector Manufacturing (Concealed Radiator) 
Industry as revised after a public hearing conducted in Washington, 
D.C., on December 26, 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 v.- age earners. Office emplo3^ees 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 of an employer's total number of office 
employees. 

Handicapped workers may be employed at wages below the mini- 
mum. 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 number of working hours for 
any week and eight horirs for any day except during any six weeks 
in a six months' period, forty-eight hours in one week shall be permis- 
sible. Executives, their stafi's and supervisors, who regularly receive 
thirty-five dollars or more per week, and outside salesmen are ex- 
cepted from this provision. Employees engaged solely at mainte- 
nance and repair work, truckmen, firemen, engineers, and electricians 
TXidLj work nine hours a day or forty-four hours a week, except during 
any six weeks in a six months' period, forty-eight hours in one v/eek 
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. 

xill 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 

This industry depends chiefly on new building. Annual sales have 
decreased approximately fifty-seven percent from 1930, the peak year, 
to 1932. The Association estimated an increase in sales of twenty- 
eight percent for the year 1933. The number of wage earners em- 
ployed by this industry decreased twentv-five percent from 1930 to 
1933. 

(342) 



343 

Tho niaxinnini hours as provided by this Code will not reabsorb 
all the foriner employees, but a substantial increase in the demand for 
the })roduets of this industry followed by an increase in man-hour 
requirements will stimulate employment. The Code provision that 
wages above the minimum shall be equitably adjusted is expected to 
cause a material increase in purchasing powder. Trade practice pro- 
visions of the Code are expected to remedy many of the industry evils 
that have been prevalent in the past. 

FINDINGS 

The Deputy Adminislratoj- in his final report to me on said (^de 
having found as herein set forth and on the basis of all the proceedings 
in this matter: 

I find that: 

(a) Said Code is w ell 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 ade- 
quate 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 un- 
employment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) Said Industry normally emplo^^s 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 Sub- 
section (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 wiU 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, 

Ad7ninistrator. 
February 10, 1934. 



CODE OF FAIR COMPETITION FOR THE NONFERROUS 
AND STEEL CONVECTOR MANUFACTURING INDUSTRY 
(CONCEALED RADIATOR INDUSTRY) 

Article I — Purposes 

I. To effectuate the policies of Title I of the National Industrial 
Recovery Act, the foUovang provisions are established as a Code of 
Fair Competition for the Nonferrous and Steel Convector Manu- 
facturing Industry (Concealed Radiator 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 "Nonferrous and Steel Convector Manufacturing 
Industry," as used herein, includes the manufacture, and the as- 
sembling and sale by the manufacturer, of Nonferrous and/or Steel 
Convectors (concealed radiators) used for steam or hot-water heating; 
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. 
Where a question arises as to whether a particular device is or is not a 
Nonferrous or Steel Convector, the decision shall rest ^^'ith the Code 
Authority hereinafter defined, subject to the approval of the 
Administrator. 

2. 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. 

3. The term "Member of the Code" as herein used, means and 
includes any member of the industry who shall expressly subscribe 
to this Code. 

4. The term "Code Authority" as herein used, shall mean the 
Code Authority established in Article VI of this Code. 

5. The term "Employee", as used herein, includes any and all 
persons engaged in the industry however compensated, except a 
"Member of the Industry." 

6. The term "President", "Act," and "Administrator", as used 
herein, means respectively, the President of the United States, Title 
I of the National Industrial Recovery Act, and the Administrator for 
Industrial Recovery. 

7. The term "Association" as used herein, means the- "Concealed 
Heater Association. " 

Article III — Hours 

Section 1. No employee, excluding accounting, clerical, and office 
employees, shah be employed in excess of forty (40) hours in one 
vreek, or eight (8) hours in any twenty-four (24) hour period, except 

(344) 



345 

that during any six (G) weeks in any six (0) months' period e'nployces 
may be empk)yed not more than forty-eight (48) hours per week, 
providing one and one half times tlie normal rate of j)ay shall be paid 
for hours worked in excess of eight (8) hours per day and forty (40) 
hours per week. The foregoing limitations shall not apply to: 

(a) Executives, executives' staffs, and supeivisors who legularly 
receive thirty-five (35) dollars or more per wee]<. 

(b) Outside sales and service men. 

(c) Employees cngao;ed solely at maintenance and repair work, 
truckmen, firemen, engineers, and electricians wdio 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) wrecks in 
any six (6) months' period. One and one half times the normal 
rate of pay shall be paid for hours worked in excess of eight (8) hours 
per day and forty (40) hours per week. 

(d) Watchmen, who 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 break-down service, or where the restriction of hours of 
sldlled workers would unavoidably reduce production or limit the 
work available to other workers. 

Sec. 2. No accounting, clerical, or office employee shall be employed 
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. 

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 $15.00 per week. 

(b) Office boys and office girls may be paid at not less than eighty 
(80) percent of the applicable 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 mini- 
mum wage shall not exceed, in any calendar month more than five 
(5) percent of the total office employees of the employer, except that 
any employer may employ at least two (2) such persons as above 
provided. 

(c) Nothing in this Article IV shall apply to or affect a bona fide 
apprentice employed under a system or course of training which, when 
completed, v/ill make the apprentice a skilled mechanic. At no time 
shall new apprentices be admitted to apprenticeship by any employer 
when such action will bring their total number to more than five (5) 
percent of the total number of employees of such employer. 

Sec. 2. This Article establishes a minimum rate of pay which shall 
apply, irrespective of wdiether an emplo3'ee is actually compensated 
on a time-rate, piecework, or other basis. 



346 

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 locaHties. 

Sec. 4. Equitable adjustment of compensation of employees receiv- 
ing more than the minimum rates of pay herein prescribed shall be 
made b}'^ ail employers ^vho have not heretofore made such adjust- 
ments, and all employers shall vdthin sixty (60) days after approval 
of this Code, report in full to the Code Authority concerning such 
adjustments \vhether made prior to or subsequent to such approval, 
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 
employees. 

Sec. 6. A person whose earning capacity is limited because of age 
or physical or other handicaps may be employed on light work at a 
wage below the minimum established by this Code if the emploj^er 
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 maintain on file with the Code Authority a list 
of all such persons employed by 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 lav\'S. Wages shall be paid at 
least at the end of every two-week period, and salaries at least at the 
end of every month. No employer shall withhold wages. 

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 
working conditions of his employees. 

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 (IS) 3^ears 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 before March Ist, 1934, a list of such 
operations or occupations. In any State an employer shall be deemed 
to have complied with this provision as to age if he shall have on file 
a certificate or permit duly signed by the authority in any State 
empowered to issae employment or age certificates or permits showing 
that the employee is of the required age. 

Sec. 2. In compliance with Section 7 (a) of the Act it is pro^'ided 
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 emplo5^ers of labor, 
or their agents, in the designation of such representatives or in self- 
organization or in other concerted activities for the purpose of col- 
lective bargaining or other mutual aid or protection. 



347 

(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 horn's of labor, 
minimum rates of pay, and other conditions of employment ap])roved 
or prescribed by the President. 

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. 

vSec. 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 provision in this Code shall supersede any State or 
Federal law which imposes more stringent reqairements on employers 
as to age of employees, wages, hours of work, or as to safety, sanitary, 
or general working conditions, or insurance, or fire protection, 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. 

Sec. 7. No employee shall be permitted to work more than six (6) 
days in any seven (7) day period. 

Article VI — 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 the members from 
time to time of the Executive Committee of the Association, provided 
for in the by-laws of the Association, together with a member selected 
at large from the Industry. In addition to membership as above pro- 
vided, there may be not more than three (3) members, without vote, 
and without expense to the Industry, to be appointed by the Adminis- 
trator, to serve for such term or terms as he may specify. No two 
members of the Code Authority shall be affiliated with any single 
member of the Industry. 

Sec. 3. The Association is hereby designated as the agency to con- 
duct an election of the Member at large of the Code Authority by 
members of the Industry who are not members of the Association 
within fifteen (15) days after the effective date of this Code, and any 
subsequent elections for the successors of such Member at large. 
Such member shall be elected to serve for a term of one (1) year. In 
the event that the position of Member at large on the Code Authority 
becomes vacant, a special meeting shall be called for an election to fill 
the vacancy. Notice of the time and place of all elections shall be 
sent by registered mail, at least ten (10) days in advance of any elec- 
tion, to all members of the Industry who are not members of the Asso- 
ciation and who are registered with the Secretary of the Association 
and voting at such election may be by person, by proxy, or by letter 
ballot. Each member of the Industry who is not a member of the 
Association shall have one vote. A plurality of the number of votes 
cast shall be necessary for election. 



348 

Sec. 4. The Code Authority shall have the following further powers 
and duties to the extent permitted by the Act, the exercise of which 
shall bo reported to tlie Administrator. 

(a) To insure the execution of the provisions of this Code and pro- 
vide for the compliance of the industrj'^ with the provisions of the Act, 
subject to such rules and regulations as may be promulgated from time 
to time by the Administrator. 

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

(c) To obtain from members of the Industry such information and 
reports (sworn or unsworn as the Code Authority may specify) as are 
required for the administration of the Code. No individual informa- 
tion, statistics, or 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 associa- 
tions and agencies shall at all times be subject to and comply with the 
provisions hereof. 

(e) 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 Industrj'^. 

(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 unfair trade 
practice provisions to govern members of tlie Industry in their rela- 
tions with each other or with other industiies and to recommend to 
the Administrator measures for industrial planning, including stabili- 
zation of employment. 

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 the Code 
Authority is not truly representative or does not in other respects 
comply with the provisions of the Act, may require an appropriate 
modification in the method of selection of the Code Authority, or any 
sub-Code Authority. 

Sec. 6. Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) submit 
to the Administrator true copies of its articles of association, bylaws, 
regulations, and any amendments when made thereto, together with 
such other information as to membership, organization, and activities 
as the Administrator may deem necessary to effectuate the purposes 
of the Act. 

Sec. 7. In addition to the information required to be submitted to 
the Code Authority and the Administrator, there shall be furnished to 
government agencies such statistical information as the Administrator 



349 

may deem necessary for the purpose recited in Section 3 (a) of tlie 
Act. 

Sec. 8. Members of the Industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authority and to 
participate in the selection of the members thereof, by assenting to 
and complying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. 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. 9. Nothing contained in this Code shall constitute the mem- 
bers of the Code Authority partners for any purpose. Nor shall this 
Code be construed to lender any member of the Code Authority liable 
in any manner to anyone for any act of any other member, officer, 
agent, or employee of the Code Authority. Nor shall this Code bo 
construed to render any member of the Code Authorit}^ exercising 
reasonable diligence in the conduct of his duties hereunder, liable to 
anyone for any action or omission to act under this Code, except for 
his own willful misfeasance or nonfeasance. 

Article VII — Specific Trade Practices 

Rule 1. Each member of the Industry shall publish and make 
available, at all times, to each class of purchasers with whom he does 
business, a printed price sheet showing the net trade price of all types, 
varieties, and sizes of concealed radiators, accessories, and appurte- 
nances regularly on sale b}^ him; together with any and all discounts, 
including cash and/or quantity discounts, transportation terms, guar- 
antees, and any other terms or conditions which may affect the net 
cost of any listed article to the purchaser of the class to which the sheet 
is issued. 

Rule 2. All published price sheets shall be plainly dated and shall 
be considered published when filed in printed form with the Code 
Authority in sufficient numbers for distribution to all Members of 
the Industry. 

Rule 3. Any Member of the Industry, upon publishing a price 
sheet, shall immediately distribute the same to his regular customers. 

Rule 4. A Member of the Industry may publish revised price 
sheets from time to time, as market conditions shall warrant. 

Rule 5. All published price sheets shall be plainly marked, 
"Subject to change without notice ". 

Rule 6. Different classes of purchasers and their trade privileges 
are recognized, but it is deemed essential to the prevention of unfair 
trade practices to adopt a uniform method of classification as it affects 
transactions in this Industry. For this purpose the following classes 
only are recognized. 

(a) Contractor is one who is regularly engaged in the business of 
installing steam or hot water heating systems and equipment, includ- 
ing concealed radiators, for the purpose of resale at a profit. Federal, 
State, County, and Municipal purchasers, including subdivisions 
thereof such as School Boards, Park Commissions, and the like, may 
be classified as Contractors. 

(b) Jobber is one who is regularly engaged in the business of 
buying and reselling steam and hot water heating materials and equip- 



350 

meiit, inchidins; concealed radiators, in and out of stock, but wlio does 
no installing of the materials and/or equipment sold. Manufacturers 
purchasing concealed radiators for resale as part of their equipment 
may be classified as jobbers. 

(c) Distiibutor is one who is regularly engaged in the business of 
buying and reselling nonferrous and/or steel convectors as a jobber, 
but who is under contract with a particular manufacturer to sell said 
manufacturer's line of nonferrous and/or steel convectors to the 
exclusion of other nonferrous and/or steel convectors, and who agrees 
to conform to all lawful limitations and restrictions upon methods of 
sale contained in said contract. 

Rule 7. Nothing herein contained shall be construed to prevent a 
Member of the Industry, from selecting his own customers and the 
classes of customers through whom he wishes to market his goods, 
but it is deemed conducive to unfair methods of competition to dis- 
criminate between purchasers of the same class, or to discriminate 
between the several recognized classes of purchasers on other than a 
uniform basis. To effectuate this policy: 

(a) The heating contractor, as the commonly recognized dealer in 
this class of materials, shall be sold at the published net trade price. 

(b) The jobber, who in turn serves the heating contractor, may be 
extended a discount, provided the member extending said discount 
issues a published price sheet to jobbers showing said discount and 
extends the same discount to all jobbers with whom he does business. 

(c) The distributor (as provided in Rule 6 (c)) may be extended any 
discount the member elects to extend, provided the member extending 
said discount issues a published price sheet to distributors showing 
said discount and extends the same discount to all distributors with 
whom he does business. 

Rule 8. The conventional trade practice of allowing quantity 
discounts is considered rational and fair provided it is based on a 
quantity bought on one order, thus resulting in a saving in cost to the 
manufacturer and his distributor, and provided a uniform schedule 
is adopted and is extended alike to all purchasers of all classes. A 
member of the industry may, or may not, at his option extend quantity 
discounts, but if he does, it shall be in strict accordance with the 
schedule printed on his price sheet together with the statement that 
it applied to all purchasers where the units are bought on one order 
and are shipped and invoiced at one time, provided, however, that 
quantity discounts may be allowed on invoices covering partial 
shipments of an order when: 

(a) The manufacturer is unable, for reasons beyond his control, to 
make shipment of complete order at one time. 

(b) The order is for units to be installed in one building or group 
of buildings for which the contract was let prior to the time the 
order was placed and when the equipment must be shipped as the 
building construction progresses. 

(c) Nothing in (a) and/or (b) is to be construed as permitting 
blanket orders for indiscriminate lots for the purpose of defeating 
the intent of Rule 8. Partial shipment invoices must clearly be 
marked as such. It shall be deemed an unfair trade practice to 
extend quantity discounts on any other basis. 

Rule 9. All sales of concealed radiators, accessories, and/or 
appurtenances shall be made on the basis of a wiitten quotation or 



351 

bill of sale. Said quotation or bill of sale shall be properly dated and 
shall be in accordance with the current published price sheet and shall 
be so itemized as to enable the checking of the same from the current 
published price sheet. 

Rule. 10. It shall be deemed an unfair method of competition to 
sell or dispose of a concealed radiator, accessory, or appurtenance on 
any lower basis than that of the current published price sheet, less 
such discounts as apply under these Rules. 

Rule 11. It shall be deemed an unfair method of competition to 
make a particular sale of concealed radiators, accessories, or appurte- 
nances contingent upon the sale of any other goods or materials. 

Rule 12. It shall bo deemed an unfair method of competition to 
mark or brand any product of the industry in any manner which has 
the tendency to mislead or deceive customers or prospective customers 
as to the substance, grade, quality, size, quantity, origin, or prepara- 
tion of any product of the industry sold or offered for sale. 

Rule 13. It shall be deemed an unfair method of competition to 
make or cause or permit to be made or published any false, untrue, or 
deceptive statement by way of advertisement or otherwise concerning 
the materials of construction used in, the operating characteristics of, 
or the quality, size, origin, or preparation of any products of the in- 
dustr.y sold or offered for snle. 

Rule 14. On and after September 1, 1934, all ratings of perform- 
ance of concealed radiators shall be in accordance with the Code for 
Testing and Rating Concealed Radiators as established by the Ameri- 
can Society of Heating & Ventilating Engineers. 

Rule 15. The right of any manufacturer of concealed radiators to 
build special sizes or types on special order is recognized; but as such 
units are more costly to build and should sell for higher prices than 
his regular line, it shall be deemed an unfair method of competition 
to sell any special or custom-built concealed radiators at the same 
price or less per unit oi rating than the next nearest size and type of the 
manufacturers' regular line. 

Rule 16. It shall be deemed an unfair trade practice to sell con- 
cealed radiators less certain parts on a basis other than that by which 
the deduction for parts is proportional to the net cost to the manu- 
facturer of the parts, or to sell separate parts, except for replacement, 
on a mark-up less than that employed in determining the price of the 
complete concealed radiator. 

Rule 17. It shall be deemed an unfair trade practice to accept 
blanket orders; therefore, all quotations and orders must specify an 
itemized bill of goods. If, after a quotation has been made, the 
specified requirements are changed, a new quotation shall be issued 
based upon published prices prevailing at that time. If, after an order 
has been accepted the requirements are changed, deductions shall be 
credited on the basis of published prices prevailing at the time order 
was placed and additions shall be charged at the prices prevailing 
at the time additions are made. 

Rule 18. With respect to that portion of his product which is 
within the industry, every employer shall use an accounting system for 
the purpose of determining allowable cost v/hich conforms to the prin- 
ciples of, and is at least as detailed and complete as, the uniform 
method of accounting, and the uniform method of costing, to be formu- 
lated or approved by the Code Authority and the Administrator with 



352 

such variations therefrom as ma}^ be required by the individual condi- 
tions affecting any employer or group of employers, and as may be 
approved by the Code Authority and the Administrator. 

Rule 19. No employer shall sell or exchange any product of the 
Industry, manufactured by him, at a price, or upon terms and condi- 
tions, which v/ill result in the purchaser paying for the goods received, 
less than the allowable cost thereof to the seller, determined in accord- 
ance with a uniform method of costing above described; provided, 
however, that dropped lines, or seconds or inventories which must be 
converted into cash to meet emergency needs may de disposed of by 
any employer, at any price and on any terms and conditions, but only 
if such employer, not less than ten (10) days before such disposal, has 
filed with Code Authority, a statement in writing, setting forth the 
fact of, and reasons for, such proposed disposal, and Code Authority 
has not, before the termination of such ten (10) days' period, in writing 
disapproved the proposed disposal; and provided further, that a 
member of the industry selling, or wishing to sell, below his own 
allowable cost to meet the competition of a competitor whose allow- 
able costs are low^er, may do so provided that he has first so reported to 
the Code Authority and in such report has cited the competition which 
caused him to take such action, and provided he publishes a revised 
price sheet. Nothing herein shall be construed to relieve a member 
of the Industry from strict adherence to Rule 9. 

Rule 20. Consignment of goods or delayed billing shall be deemed 
an unfair trade practice, except under conditions prescribed by the 
Code Authority. 

Rule 21. It shall be deemed a violation of these Rules to enter 
into or be a party to a written or verbal agreement or understanding 
wliich serves directly or indirectly to affect the price or terms of sale 
established by a current published price sheet, or which serves in any 
way to defeat the spirit and purpose of these Rules. However, 
nothing herein contained shall be construed to prevent a member of 
the industry from cooperating with or instructing prospective pur- 
chasers as to the proper application or installation of said member's 
products. 

Rule 22. A violation of any of the rules in this Article VII shall 
be deemed an unfair method of competition. 

Rule 23. 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 repre- 
sentative of another in relation to the business of the employer of 
such employee, the principal of such agent or the represented party, 
without the knowledge of such employer, principal, or party. Com- 
mercial bribery provisions shall not be construed to prohibit free and 
general distribition of articles commonly used for advertising except 
BO far as such articles are actually used for commercial bribery as 
hereinbefore defined. 

Article VIII — General Provisions 

Section 1. No provision of this Code shall be construed or applied 
in such a manner as to — 

(a) Promote or permit monopolies or monopolistic practices. 

(b) Permit or encourage unfair competition. 



353 

(c) Eliminate, oppress, or discriminate against small entorjirises. 

Sec. 2. This Code is hereby expressly made i>ubject to the right 
of the President, pursuant to vSection 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 rcgidation issued under Title I 
of said Act, and specifically but without limitation to his right to 
cancel or modify his order approving this Code, or any conditions 
imposed by him upon such approval. 

Sec. 3. This Code, except as to pro\isions required by the Act, 
may be modified on the basis of experience or change in circumstances, 
such modifications to be based upon application to the Administrator 
and sucli notice and hearing as he ma\'^ specify, and to become effective 
on approval of the Administrator. Any such application may bo 
made by the Code Authority. 

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 interest, the Administrator may require that 
such action be suspended for a period of not to exceed thirty daj's 
to afford an opportunity for investigation of the merits of such action 
and further consideration of the Code Authority or agency pending 
final action, v/hich shall be taken only upon approval b}"^ the 
Administrator. 

Article IX 

This Code shall become eft'ective on the second Monday after its 
approval by the President- 
Approved Code No. 271. 
Registry No. 1131-01. 

o 



Approved Code No. 272 
CODE OF FAIR COMPETITION 



FOR THE 



UNIT HEATER AND/OR UNIT VENTILATOR 
MANUFACTURING INDUSTRY 

As Approved on February 10, 1931 



ORDER 



Apfroving Code of Fair Competition for the Unit Heater and/or 
Unit Ventilator 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 Unit Heater and/or Unit Ventilator 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 
annexed report and do find that said Code complies in all respects 
W'ith 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 VII, Rule 4, insofar as they 
prescribe a waiting period between the filing with the Code Au- 
thority 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 sixty 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, 
Administrator for Industrial Recovery. 

Approval recommended : 
W. A. Harriman, 

Division Admin istrator. 

Washington, D.C, 

Fehruary 10, 1931^. 

39303° 376-44 34 (355) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on the Code of Fair Competition for the Unit 
Heater and/or Unit Ventilator Manufacturing 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 per cent 
of the total number of an employer's 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 of an employer's total 
number of office employees. 

Handicapped workers may be employed at wages below the 
minimum. 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 number of working hours for 
any week and eight hours for any day except during any six weeks 
in a six months' period forty-eight hours in one week shall be per- 
missible. Executives, their staffs and supervisors, who regularly 
receive thirty-five dollars or more per week, and outside salesmen are 
excepted from this provision. Employees engaged solely at mainte- 
nance and repair work, truckmen, firemen and engineers may work 
nine hours a day or forty-four hours a week except during any six 
weeks in a six months' period forty-eight hours in one w^eek is per- 
missible. Watchmen shall not be emploj^ed 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 

The economic welfare of this industry depends upon building 
activity. Unit heaters are used mainly for factory or industrial use, 
whereas unit ventilators are intended largely for school and office 
ventilation ancl/or heating. Annual sales have decreased seventy- 
two percent from 1929 to 1932. 

Invested capital and production capacit}^ have increased about 
thirty-five per cent since 1929. The number of wage earners em- 

(356) 



357 

ployed by this indiisti-y decroascd fifty-four percent over the ^ame 
period. The Research and Phinninfj Division states that the indus- 
try employed 1,770 wage earners in 1929. 

The maximum hours as provided by this Code will not reabsorb 
all the former employees, but a substantial increase in the demand 
for the products of this industry followed by an increase in man- 
hour requirements will stimulate emplojanent. The Code provides 
for the upward adjustment of wages above the minimum, therefore, 
the purchasing power of the Industry's employees should be in- 
creased. Trade practice provisions of the Code are expected to rem- 
edy the unfair competition that has existed in the past within the 
Industry. 

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 
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 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 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 emploA^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 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 j:)rocess have P'^t 
been deprived of the right to be heard prior to approval of said 
Code. 

For these reasons, therefore, I have approved this Code. 
Respectfull}^, 

Hugh S. Johnson, 

Administi'ator'. 
February 10, 1934. 



CODE OF FAIR COMPETITION FOR THE UNIT HEATER 
AND/OR UNIT VENTILATOR MANUFACTURING IN- 
DUSTRY 

Article 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 Unit Heater and/or Unit Ventilator 
Manufacturing Industry, and shall be the standard of fair compe- 
tition for such industry and shall be binding upon every member 
thereof. 

Article II — Definitions 

1. The term " Unit Heater and/or Unit Ventilator Manufacturing 
Industry ", as used herein, includes the manufacture, and the assem- 
bling and sale by the manufacturer of unit heaters and/or unit 
ventilators, as herein defined, and such related branches or sub- 
divisions as may from time to time be included under the provisions 
of this Code with the approval of the President, after such notice 
and hearing as may be prescribed. 

2. The term " Unit Heater ", as used herein means a combination 
of a steam or hot-water air-heating unit and a fan or blower, having 
a common enclosure and intended to be placed within or adjacent 
to a space to be heated, and in which generally no ducts are attached 
to the outlets or inlets. A " Unit Ventilator " is similar in principle 
of operation to a unit heater but is designed to use all or part of 
outdoor air. Unit Heaters are mainly intended for factory or 
industrial use, whereas Unit Ventilators are intended largely for 
school and office ventilation and/or heating. AVhere a question arises 
as to whether a particular device is a Unit Heater or a Unit Venti- 
lator, the decision shall rest with the Code Authority, hereinafter 
defined, subject to the approval of the Administrator. 

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. 

4. The term " Member of the Code ", as herein used, means and 
includes any member of the industry who shall expressly signify 
assent to this Code. 

5. The term " Code Authority "j as herein used, means the body 
established in Article VI of this Code, to cooperate with the 
Administrator in the administration of this Code. 

6. The term " Employee ", as used herein, includes any and all 
persons engaged in the industry however compensated, except a 
" Member of the Industry." 

7. The tern^s " President ", "Act ", and "Administrator ", as used 
herein, mean, respectively, the President of the United States, Title 

(358) 



359 

I of the National Industiial Kecoveiy Act, and the Administrator 
for Industrial Recovery. 

8. The term "Association ", as used herein, shall mean the Indus- 
trial Unit Heater Association. 

Article III — Hours 

Section 1. No employee, excluding accounting, clerical, and office 
employees, shall be employed in excess of forty (40) hour,s in one 
week, or eight (8) hours in any twenty-four (24) hour period, ex- 
cept that during any six (6) weeks in any six (6) months' period 
employees 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 worked 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-five ($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 
during any six (6) months' period. One and one half times the 
normal rate of pay shall be paid for hours worked in excess of 
eight (8) hours per day and forty (40) hours per week. 

(d) Watchmen, who 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 appl3^ 

Sec. 2. No accounting, clerical, or office employee shall be employed 
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 



360 

total number of office emploj'ees of the employer, except that any em- 
ployer may employ at least two (2) such persons as above provided. 

(c) Nothing in this Article IV shall apply to or affect a bona 
fide apprentice employed under a S3'steni or course of training which, 
when completed, will make the apprentice a skilled mechanic. At no 
time shall new apprentices be admitted to apprenticeship by 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, irrespective of whether an employee is actually 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. Equitable adjustment of compensation of employees re- 
ceiving more than the minimum rates of pay herein prescribed shall 
be made by all employers who have not heretofore made such 
adjustments, and all employers shall within sixty (60) days after 
approval of this Code, report in fidl to the Code Authority con- 
cerning such adjustments whether made prior to or subsequent to 
such approval, 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 
employees. 

Sec. 6. A person whose earning capacity is limited because of age 
or physical or other handicaps may be employed on light work 
at a wage below the minimum established by this Code if the em- 
ployer obtains from the State authority designated by the United 
States Department of Labor a certificate authorizing his employ- 
ment at such wages and for such hours as shall be stated in the 
certificate. Each employer shall maintain on file with the Code 
Authority a list of all such persons employed by 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 weeks' period, and salaries at least 
at the end of every month. 

Sec. 8. The emj)loyer or his agent shall accept no rebates directly 
or indirectly on such wages nor give amythmg of value or extend 
favors to any person for the purpose of influencing rates of wages 
or the working conditions of his employees. 

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 haz- 
ardous in nature or dangerous to health. The Code 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 proArision as to age if he shall have on 
file a certificate or permit duly signed by the authority in any State 



361 

empowered to issue employment or age certificates or permits show- 
ing that the employee is of the required age. 

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 such representatives or 
in self-organization or in other concerted activities for the purpose of 
collective bargaming 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 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. 3. No employer shall reclassify employees or duties of occu- 
pations performed or engage in any other subterfuge for the pur- 
pose 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 provisions in this Code shall supersede any State or 
Federal lavv^ which imposes more stringent rec{uirements on em- 
ployers as to age of emploj^ees, wages, hours of work, or as to safety, 
sanitary or general worldng conditions, or insurance, or fire protec- 
tion, than are imposed by this Code. 

Sec. 6. All employers shall post complete copies of the labor prc> 
visions of this Code in conspicuous places accessible to employees. 

Article VI — 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 the members from 
time to time of the Executive Committee of the Association, provided 
for in the bylaws of the Association, together with a member 
selected at large from the Industry. Iii addition to membership as 
above provided, there may be not more than three (3) members, 
without vote, and without expense to the Industry, to be appointed 
by the Administrator, to serve for such term or terms as he may 
specify. No two (2) members of the Code Authority shall be 
affiliated with any single member of the Industry. 

Sec. 3. The Association is hereby designated as the agency to 
conduct an election of the Member at large of the Code Authority 
by members of the Industry who are not members of the Association, 
within fifteen (15) days after the effective date of this Code, and 
any subsequent elections for the successors of such Member at large. 
Such member shall be elected to serve for a term of one (1) year. 
In the event that the position of Member at large on the Code 



362 

Authority becomes vacant, a special meeting shall be called for an 
election to fill the vacancy. Notice of the time and place of all 
elections shall be sent by registered mail, at least ten (10) days in 
advance of any election, to all members of the Industry who are not 
members of the Association and who are registered with the Secre- 
tary^ of the Association and voting at such election may be by person, 
by proxj^, or by letter ballot. Each member of the Industry who is 
not a member of the Association shall have one (1) vote. A plurality 
of the number of votes cast shall be necessary for election. 

Sec. 4. 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. 

(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, subject to such rules and regulations as may be promulgated 
from time to time by the Administrator. 

(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 (sworn or unsworn as the Code Authority may specify) 
as are required for the administration of the Code. No individual 
information, statistics, or 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 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. 

(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.K.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 unfair trade 
practice provisions to govern members of the Industry in their re- 
lations with each other or with other industries and to recommend 
to the Administrator measures for industrial planning, including 
stabilization of employment. 

Sec. 5. In order that the Code Authority shall at all times be 
truly representative of the Industry and in other respects comply 
Avith the provisions of the Act, the Administrator may provide such 
hearings as he may deem proper; and thereafter, if he shall find 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, 
or any sub-Code Authority. 



363 

Sec. 6. Each association directly or indirectly participating in 
the selection or activities of tJie Code Authoi-ity 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 effectuate the purposes of 
the Act, 

Sec. 7. In addition to the information required to be submitted 
to the Code Authority and the Administrator, there shall be fur- 
nished to government agencies such statistical information as the 
Administrator may deem necessary for the purpose recited in Section 
3 (a) of the Act. 

Sec. 8. Members of the Industry shall be entitled to participate 
in and share the benefits of the activities of the Code Authority and 
to participate in the selection of the members thereof, by assenting 
to and complying with the requirements of this Code and sustain- 
ing their reasonable share of the expenses of its administration. 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 of volume of business and/or such other factors 
as may be deemed equitable to be taken into consideration. 

Sec. 9. Nothing contained in this Code shall constitute the mem- 
bers of the Code Authority partners for any purpose. Nor shall 
this Code be construed to render any member of the Code Authority 
liable in any manner to anyone for any act of any other member, 
oflEicer, agent, or employee of the Code Authority. Nor shall this 
Code be construed to render any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties hereunder 
liable to anyone for any action or omission to act under this Code, 
except for his own wilful misfeasance or nonfeasance. 

Article VII — Specific Trade Practices 

KuLE 1. Each member of the Industry shall publish and make 
available, at all times, to each class of purchasers (except distribu- 
tors) with whom he does business, a printed price sheet showing the 
list price of all types, varieties, and sizes of unit heaters, unit ven- 
tilators, accessories, and appurtenances regularly on sale by him; 
together with any and all discounts, including cash and/or quantity 
discounts, transportation terms, guarantees, and any other terms or 
conditions which may affect the net cost of any listed article to 
the purchaser of the class to which the sheet is issued. 

EuLE 2. All published price- sheets shall be plainly dated and shall 
be considered published when filed in printed form with the Code 
Authority in sufficient numbers for distribution to all members of 
the Industry. 

KuLE 3. Any member of the Industry, upon publishing a price 
sheet, shall immediately distribute the same to his regular customers. 

Rule 4. A member of the Industry may publish re^dsed price 
sheets from time to time, as market conditions may warrant, upon 
filing ten (10) days' notice with the Code Authority.* 

* See paragraph 2 of order approving tbig Code. 



364 

Rule 5. All published price sheets shall be plainly marked, 
" Subject to change M'ithout notice." 

Rule 6. Different classes of purchasers and their trade privileges 
are recognized, but it is deemed essential to the prevention of unfair 
trade practices to adopt a uniform method of classification as it 
affects transactions in this Industry. For this purpose the following 
classes only are recognized. 

(a) Consumer is the ultimate purchaser or user of unit heaters or 
unit ventilators. 

(b) Contractor is one who is regularly engaged in the business of 
installing heating systems and equipment, including unit heaters or 
unit ventilators, for the purpose of resale at a profit. A consumer 
who employs an erecting crew for installing heating materials or 
equipment on his own properties or for his own use shall not be 
classed as a contractor. Federal, State, County, and Municipal pur- 
chasers, including subdivisions thereof such as School Boards, Park 
Commissions, and the like, may be classified as Contractors. 

(c) Jobber is one who is regularly engaged in the business of 
buying and reselling steam and hot water heating materials and 
equipment, including unit heaters or unit ventilators, in and out of 
stock, but who does no installing of the materials and/or equipment 
sold. Manufacturers purchasing unit heaters for resale as part of 
their equipment may be classified as jobbers. 

(d) Distributor is one who is regularly engaged in the business of 
buying and reselling unit heaters or unit ventilators as a jobber, but 
who is under contract with a particular manufacturer to sell said 
manufacturer's line of unit heaters and/or unit ventilators to the 
exclusion of other unit heaters and unit ventilators, and who agrees 
to conform to all lawful limitations and restriction upon methods of 
sale contained in said contract. 

Rule 7. Nothing herein contained shall be construed to prevent 
a member of the Industry from selecting his own customers and the 
classes of customers through whom he wishes to market his goods, 
but it is deemed conducive to unfair methods of competition to dis- 
criminate between purchasers of the same class, or to discriminate 
between the several recognized classes of purchasers on other than 
a uniform basis except in the case of distributors or agents. To 
effectuate this Policy : 

(a) The heating contractor, as the commonly recognized dealer in 
this class of materials, may be extended a trade discount, provided 
the member extending the discount issues a published price sheet to 
contractors showing said discount and extends the same discount to 
all contractors with whom he does business. 

(b) The jobber, who in turn serves the heating contractor, may be 
extended the contractor's trade discount plus an additional trade 
discount of not to exceed ten (10) percent, provided the member ex- 
tending said discount issues a published price sheet to jobbers show- 
ing said discounts and extends the same discounts to all jobbers with 
whom he does business. 

(c) The distributor or a^ent, (as provided in Rule 6-d) under 
contract to abide by the prices and terms of sale of the published 
price sheet and these Rules of Fair Competition (Article 7 of this 



365 

Code), may be extenrlorl any discount which a member elects to 
extend. 

RuT.E 8. The conventional tiade i)ractice of allowin«j^ quantity 
discounts is considered rational and fair provided it is based on a 
quantity bou.o-ht on one (1) order, thus resulting in a saving in cost 
to the manufacturer and his distributor, and provided a uniform 
schedule is adopted and is extended alike to all purchasers of all 
classes. 

A member of the Industry may, or may not, at his option extend 
quantity discounts, but if he does, it shall be in strict accordance 
with the schedule printed on his price sheet together with the state- 
ment that it aj^plies to all purchasers where the units are bought on 
one (1) order and are shipped and invoiced at one (1) time, pro- 
vided, however, that quantity discounts may be allowed on invoices 
covering partial shipments of an order when 

(a) The manufacturer is unable, for reasons beyond his control, 
to make shipment of complete order at one time. 

(b) The order is for units to be installed in one (1) building or 
group of buildings for which the contract was let prior to the time 
the order was placed and when the equipment must be shipped as the 
building construction jjrogresses. 

(c) When the order specifies definite partial deliveries over a 
period of not to exceed six (6) months, and provided that if pur- 
chaser fails to accept the entire order within the time specified, 
adjustment of volume discount shall be made on the basis of the 
volume actually shipped. 

Rule 9. All sales of unit heaters, unit ventilators, accessories, 
and/or appurtenances shall be made on the basis of a written quota- 
tion or bill of sale. Said quotation or bill of sale shall be properly 
dated and shall be in accordance with the current published price 
sheet and shall be so itemized as to enable the checking of the same 
from the current published price sheet. Outstanding quotations may 
be protected for a period of thirty (30) days beyond date of price 
change (or in the case of quotations made for direct purcliases by 
the Federal Government, protection may be given for sixty (60) 
days beyond bid opening) provided a list of such outstanding 
quotations be filed with the Code Authority within ten (10) days 
after price change. 

Rule 10. All quotations shall be subject to change without notice 
and void after sixty (60) days, and all written quotations shall so 
state, subject however to Rule 9. 

Rule 11. It shall be deemed an unfair method of competition to 
sell or dispose of a unit heater, unit ventilator, accessory or appur- 
tenance on any lower basis than that of the current published price 
sheet, less such discounts as apply under these Rules. 

Rule 12. It sliall be deemed an unfair method of competition to 
make a particular sale of unit heaters, unit ventilators, accessories, 
or appurtenances contingent upon the sale of any other goods or 
materials. 

Rule 13. It shall be deemed an unfair method of competition to 
mark or brand any product of the Industry in any manner which has 
the tendency to mislead or deceive customers or prospective cus- 
tomers as to the substance, grade, quality, size, quantity, origin, or 
preparation of any product of the Industry sold or offered for sale. 



366 

Rule 14. It shall be deemed an unfair method of competition to 
]iiake or cause or permit to be made or published any false, untrue, 
or deceptive statement by way of advertisement or otherwise con- 
cerning the materials of construction used in, the operating charac- 
teristics of, or the quality, size, origin, or preparation of any product 
of the Industry sold or offered for sale. 

Rule 15. All ratings of performance of unit heaters, and unit 
ventilators shall be in accordance with the respective Codes for 
Testing and Rating Unit Heaters and Unit Ventilators as established 
by the American Society of Heating & Ventilating Engineers except 
that this rule shall not apply in the case of Unit Ventilators until on 
and after July 1st, 1931. 

Rule 16. The right of any manufacturer of unit heaters or unit 
ventilators to build special sizes or types on special order is recog- 
nized ; but as such units are more costly to build and should sell for 
higher prices than his regular line, it shall be deemed an unfair 
method of competition to sell any special or custom-built unit heater 
or unit ventilator at the same price or less per unit of rating than the 
next nearest size and type of the manufacturers' regular line. 

Rule 17. It shall be deemed an unfair trade practice to sell unit 
heaters or unit ventilators less certain parts on a basis other than 
that by which the deduction for parts is proportional to the net cost 
to the manufacturer of the parts, or to sell separate parts, except for 
replacement, on a mark-up less than that employed in determining 
the price of the complete unit heater or unit ventilator. 

Rule 18. It shall be deemed an unfair trade practice to accept 
blanket orders; therefore, all quotations and orders must specify an 
itemized bill of goods. If, after a quotation has been made, the 
specified requirements are changed, a new quotation shall be issued 
based upon published prices prevailing at that time. If, after an 
order has been accepted the requirements are changed, deductions 
shall be credited on the basis of published prices prevailing at the 
time order was placed and additions shall be charged at the prices 
prevailing at the time additions are made. 

Rule 19. With respect to that portion of his product which is 
within the Industry, every employer shall use an accounting 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 or approved by the Code Authority and the Admin- 
istrator with such variations therefrom as may be required by the 
individual conditions affecting any employer or group of employ- 
ers, and as may be approved by the Code authority and the 
Administrator. 

Rule 20. No employer shall sell or exchange any product of the 
Industry, manufactured by him, at a price, or upon terms and condi- 
tions, which will result in the purchaser paying for the goods re- 
ceived, less than the allowable cost thereof to the seller, determined 
in accordance with a uniform method of costing above described; 
provided, however, that dropped lines, or seconds, or inventories 
which must be converted into cash to meet emergency needs may be 
disposed of by any employer, at any price and on any t^rms and 



367 

conditions, but only if such employer, not less than ten (10) days 
before such disposal, has filed with the Code Authority, a statement 
in writing, setting forth the fact of, and reasons for, such proposed 
disposal, and the Code Authority has not, before the termination of 
such ten (10) days' period, in writing disapproved the proposed dis- 
posal; and provided further, that a member of the Industr}^ selling, 
or wishing to sell, belov; his own allowable cost to meet tlie competi- 
tion of a competitor whose allowable costs on products of equivalent 
design, size, capacity, character, or quality are lower, may do so pro- 
vided that he has first so reported to the Code Authority and in such 
report has cited the competition which caused him to take such ac- 
tion, and provided he publishes a revised price sheet. Nothing herein 
shall be construed to relieve a member of the Industry from strict 
adherence to Rule 9. 

R.ULE 21. Consignment of goods or delayed billing shall be deemed 
an unfair trade practice, except under conditions prescribed by the 
Code Authority. 

Rule 22. It shall be deemed a violation of these Rules to enter into 
or be a party to a written or verbal agreement or understanding 
which serves directly or indirectly to affect the price or terms of sale 
established by a current published price sheet, or which serves in any 
way to defeat the spirit and purposes of these Rules. However, noth- 
ing herein contained shall be construed to prevent a member of the 
Industry from cooperating with or instructing prospective purchas- 
ers as to the proper application or installation of said member's 
products. 

Rule 23. All unit heaters and/or unit ventilators, accessories, and 
appurtenances shall be sold f.o.b. factory. Freight may be allowed 
to freight station nearest to destination, or may be prepaid. 

Rule 24. Varying discounts may be allowed for cash and for vary- 
ing periods not to exceed (30) daj^s from date of invoice if published 
and with the understanding that such discounts are viewed as added 
collection costs. 

Rule 25. Published guarantees of unit heaters and imit ventila- 
tors shall be subject to the following limitations : 

(a) No guarantee on defective material or workmanship shall ex- 
tend beyond one year from date of shipment. 

(b) Replacements : F.O.B. manufacturer's factory subject to man- 
ufacturer's inspection. 

(c) No liability shall be assumed for consequential damages or 
reinstallation labor. 

(d) Foreign equipment giiarant^e shall be limited to the warranty 
of its manufacturer. 

Rule 26. A violation of any of the rules in this Article shall be 
deemed an unfair method of competition. 

Rule 27. 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 repre- 
sentative of another in relation to the business of the employer of 
such employee, the principal of such agent or the represented party, 
without the knowledge of such employer, principal, or party. Com- 
mercial bribery provisions shall not be construed to prohibit free 
and general distribution of articles commonly used for advertising 



368 

except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

Article VIII — General PROAnsiONS 

Section 1. No provision of this Code shall be construed or applied 
in such a manner as to — 

(a) Promote or permit monopolies or monopolistic practices. 

(b) Permit or encourage unfair competition. 

(c) Eliminate, oppress, or discriminate against small enterprises. 
Sec. 2. This Code is hereby expressly made subject to the right 

of the President, pursuant to Section 10 (b) of Title I of the National 
Industrial Recovery Act, from time to time to cancel or modify anjr 
order, approval, license, rule, or regulation issued under Title I of 
said Act, and specifically but without limitation to his right to 
cancel or modify his order approving this Code, or any conditions 
imposed by him upon such approval. 

Sec. 3. This Code, except as to provisions required by the Act, 
may be modified on the basis of experience or change in circum- 
stances, such modifications to be based upon application to the 
Administrator and such notice and hearing as he may specify, and 
to become effective on approval of the President. An}^ such appli- 
cation may be made by the Code Authority. 

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 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 action and further consideration by the Code Authority or 
agency pending final action, which shall be taken only upon approval 
by the Administrator. 

Article IX 

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



Approved Code No. 272. 
Registry No. 13(M-04. 



o 



Approved Code No. 273 
CODE OF FAIR COMPETITION 

FOR THE 

BAND INSTRUMENT MANUFACTURING 
INDUSTRY 

As Approved on February 10, 1934 



ORDER 



Approving Code of Fair Competition for the Band 
Instrument Manufacturing Industry 

An application having been dnly made pursuant to and in full com- 
pliance with the provisions of Title I of the National Industrial Re- 
covery Act, approved June 16, 1933, for approval of a Code of Fair 
Competition for the Band Instrument 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 Industrial Recovery, 

Approval recommended : 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

Fehinmry 10, 193 J^. 

89354° 376-45 34 (369) 



REPORT TO THE PRESIDENT 

The President, 

The ^VMte House. 

Sir : A Public Hearing on the Code of Fair Competition for the 
Band Instrument Manufacturing Industry, submitted by the Na- 
tional Band Instrument Manufacturers Association, located at 45 
West 4oth Street, New York, N.Y., was conducted in Washington 
on the '2Gth of October 1933, in accordance with the provisions of 
the National Industrial Recovery Act. The Association claims to 
represent 87 percent of the Industry. 

The maximum hours permitted under this Code are eight (8) 
hours per day or forty (40) hours per week, except that for five (5) 
weeks of any six (6) months i>eriocl, eight (8) hours of overtime per 
week may be worked, provided that all overtime is reported to the 
Code Authority. The maximum hours for clerical or office emploj^ees 
is forty (40) hours in any one week, except that during inventory 
periods, any member of the industry may be permitted to work such 
employees, as may be used on inventory work, not to exceed two (2) 
in number or twenty percent (20% ) of the total number of em- 
ployees covered under this paragraph, whichever is the higher, a 
maximum of forty-eight (48) hours per week for a period not to 
exceed three (3) weeks in any six (6) months period. 

The minimum wage for factory employees, except apprentices, is 
forty cents (40^) per hour. The minimum wage for apprentices is 
not less than thirty-two cents (32^) per hour wdth the provision that 
the number of apprentices so paid shall not in any week be more than 
one (1) in number or five percent (5%) of the total number of fac- 
tory employees actually engaged in productions during that week, 
whichever is the higher. All other employees shall be paid not less 
than thirty-five cents (35^) per hour. 

Tlie Band Insirument Manufacturing Industry, based on the 
Census of Manufactures, 1929, employed 2,069 wage earners, and 
1,671 during 1931. On the basis of the 40-hour week, 167 wage 
earners would benefit through reemployment, bringing the total 
number of wage earners to 1,838. 

The value of commodities produced by the Band Instrument Man- 
ufacturing Indu.stry aggregated, during 1929, $11,126,815. During 
1931, product value declined 54.2 percent under the 1929 total, or to 
$5,089,566. In other words, where the value per establishment 
averaged $252,882 in 1929, it declined to an average of $127,239 in 
1931. 

FINDIXGS 

The I)p]Mity 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; 

(370) 



371 

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 ])ower, 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 Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsecton (b) of Section 10 thereof; and that the applicant associa- 
tion is an industrial association trvdy 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 evidence 
adduced during this hearing and from recommendations and reports 
of the various Advisory Boards it is believed that this Code as 
now proposed and revised represents an effective, practical, equitable 
solution for this Industry and for these reasons this Code has been 
approved. 

Respectfully, 

Hugh S. Johnson, 

A chninistra tor. 
February 10, 1934. 



CODE OF FAIR COMPETITION FOR THE BAND INSTRU- 
MENT MANUFACTURING 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 Band Instrument Manufacturing Industry, and shall be 
the standard of fair competition for this industry and binding upon 
every member thereof. 

Article II — Definitions 

1. The term '" Band Instrument Manufacturing Industry " as used 
herein is defined to mean the fabricating, and/or assembling, repair- 
ing, reconstructing, and remodeling, of those musical instruments 
commonly used by bands such as wind, percussion, and similar in- 
struments, as well as of parts and accessories thereof, and such re- 
lated 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. It shall not be deemed 
to include pianos, organs, stringed instruments, or instrument cases, 
nor shall it include repairmen who do repairing only and who do 
not fabricate or assemble new or used instruments. 

2. The term " member of the Industry "', as used herein, shall mean 
any employer engaged in the Band Instrument Manufacturing In- 
dustry, as defined in Section 1 of this Article, 

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

4. The term " employer " as used herein includes anyone by whom 
such emploj'ee is compensated or employed. 

5. The term " apprentice " as used herein means any employee 
without previous experience or employment in the Industry, who is 
engaged in learning any of the skilled or semiskilled operations 
incidental to the industry. 

6. The term " jobber " shall mean a distributor of the products of 
the industry who regularly sells such products to retailers, main- 
tains an established place of business, where at all times he carries 
a stock of such products; publishes a wholesale catalogue and main- 
tain at least one traA'eling salesman. 

7. The term " retailer " shall mean a distributor of the products 
of the industry who regularly purchases for his own account such 
products and sells them for use and not for resale, and who main- 
tains an established place of business where at all times he carries 
a stock of such products. 

8. The term " agent " shall mean anyone who sells the products of 
the industry on commission for the account of manufacturer. 

(372) 



373 

9. The terms "Art", and "Administrator"' as used herein mean 
respectively Title I of the National Industrial Recovery Act, and 
the Administrator for Industrial Recovery. 

Article III — Hours 

1. No factory employee shall be permitted to work in excess of 
eight (8) hours per day or forty (40) hours per week except that 
for five (5) Aveeks of any six (6) months' period, eight (8) hours 
of overtime per week may be worked, provided that all overtime is 
reported to the Code Authority. 

2. No person employed in clerical or office work, shall be per- 
mitted to work in excess of forty (40) hours in any one week, except 
that during inventory periods, any member of the industry may be 
permitted to work such employees, as may be used on inventory 
work, not to exceed two in number or twenty percent (20%) of 
the total number of employees covered under this section, which- 
ever is the higher, a maximum of forty-eight (48) hours per week 
for a period not to exceed three (3) weeks in any six (6) months' 
period. 

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, ancl engineering 
staffs Avho receive not less than thirty-five ($35.00) dollars per week, 
ilor shall said stipulations apply to commercial traveling salesmen. 

4. Watchmen shall be employed in pairs and shall not be per- 
mitted to w^ork more than thirty-six (36) and forty-eight (48) hours 
in alternate weeks or an average of more than forty-two (42) hours 
per w^eek, 

5. No firemen shall be permitted to work in excess of a tolerance of 
ten (10%) percent on the hours stipulated in section 1 of this article. 

6. Technicians on research and engineering staifs receiving less 
than thirty-five ($35.00) dollars per week, upon specific request to 
the Code Authority, may be excepted from the provisions of this 
article by the Code Authority with the approval of the Adminis- 
trator. 

7. 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 

1. No factory worker shall be paid less than forty (40^) cents 
per hour; provided, however, that the minimum wage that shall be 
paid to any apprentice shall be not less than thirty-two (320) cents 
per hour; and provided further, that the number of apprentices so 
paid shall not in any week be more than one (1) in number or 
five (5%) percent of the total number of factory employees actually 
engaged in production operations during that week, wdiichever is 
the higher. The period of learning for each operation shall be 
fixed by the Code Authority subject to the approval of the Admin- 
istrator, but in no case shall it exceed six (6) months, and no person 
shall serve more than one (1) apprenticeship in the industr3^ 



374 

2. All other emploj^ees, except as provided in Section 3 of this 
article, shall be paid not less than thirty-five (35^) cents per hour. 

3. A })erson whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a 
Avage 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. Such authority shall be guided by the 
instructions of the United States Department of Labor in issuing 
certificates to such persons. 

4. 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. 

5. 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 employment 
may be reduced; and all members of this industry shall endeavor 
to increase the pay of all employees in excess of the minimum wage, 
as herein set forth, by an equitable adjustment of all pay schedules. 

G. Female employees performing substantially the same work as 
male employees shall receive the same rates of compensation as male 
employees. 

Article V — General Labor Provisions 

CHILD LABOR 

Section 1. No i^erson under sixteen (IG) 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 (GO) days a list of 
such operations or occupations. In any State an employer shall be 
deemed to have complied with this provision as to age if he shall 
have on file a certificate or permit dulj^ 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. 

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 organi- 
zation of his own choosing, and 



375 

(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. 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 employees at the place and during the hours 
of their employment. 

STATE LAWS 

Sec. 5. No provision in this Code shall supersede any State or 
Federal law which imposes on emploj^ers more stringent require- 
ments as to age of employees, w^ages, hours of work, or as to safety, 
health, sanitary, or general working conditions, than are imposed 
by this Code. 

EMPLOYER IN TWO OR MORE INDUSTRIES 

Sec. 6. If any employer of labor in this industry is also an em- 
ployer of labor in any other industry, the provisions of this Code 
shall apply to and affect only that part of his business which is 
included in this industry. 

POSTING 

Sec. 7. All employers shall post complete copies of this Code 
in conspicuous places accessible to employees. 

Article VI — Administration 

Section 1. A Code Authority is hereby established to cooperate 
with the Administrator in the administration of this Code and shall 
consist of five (5) representatives of the industry chosen by a fair 
method of selection approved by the Administrator. The Admin- 
istrator in his discretion may appoint not more than three (3) 
additional members without vote, 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 inequitable restrictions on membership and .shall 
submit to the Administrator true copies of its articles of association, 
by-laws, regulations, and any amendments Avhen made thereto, to- 
gether with such other information as to membership, organization, 



376 

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. Any member 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 a 
reasonable share of the expenses of its administration. Such reason- 
able share of the expenses of the administration shall be determined 
by the Code Authority subject to disapproval by the Administrator 
on the basis of volume of business and/or such other 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 anyone for 
any act of any other member, officer, agent, or employee of the Code 
Authority. Nor shall any member of the Code Authority, exercising 
reasonable diligence in the conduct of his duties hereunder, be liable 
to anyone for any action or omission to act under this Code, except 
for his own willful misfeasance or nonfeasance. 

Sec. 7. The Code Authority shall have the following duties and 
powers in addition to those elsewhere provided in tJiis Code and to 
the extent permitted by the Act, subject to the right of the Admin- 
istrator to disapprove of any action taken by the Code Authority. 

(a) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code, in accord- 
ance with the powers herein granted, and to submit 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 such information 
and reports as are required for the administration of the Code and 
to i^rovide 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- 
ber of the industry or any other party except to such governmental 
agencies as may be directed by the Administrator. 

(c) To designate the National Association of Band Instrument 
Manufacturers or any other trade association or agency as it deems 
proper for the carrying out of any of its provisions provided for 
herein, provided that nothing herein contained shall relieve the 



377 

Code Authority of its duties or responsibilities under this Code find 
that such trade associations and ai>encies shall at all times be subject 
to and comply with the provisions hereof. 

(d) To cooperate with the Administrator in reoH-dating 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. 

(e) 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. 

(f) 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. 8. If the Administrator shall determine that any action of a 
Code Authority or any agency thereof may be unfair or unjust or 
contrary to the public* interest, the Administrator may require that 
such action be suspended 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 not be effective 
unless the Administrator ap])roves or unless he shall fail to disap- 
prove after thirty (30) days' notice to him of intention to proceed 
with such action in its original or modified form. 

Article VII — Trade Practices 

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

Section 1. 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 mis- 
lead purchasers with respect to the brand, grade, quality, quantity, 
origin, size, substance, character, nature, finish, material, content, 
or preparation of such goods. 

Sec. 2. 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 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 busi- 
ness conducted. 

Sec. 3. Bribing Employees. 

No member of the industry shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influ- 
encing or rewarding the action of any employee, agent, or represen- 
tative 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. Com- 
mercial bribery proAasions shall not be construed to prohibit free 
and general distribution of articles commonly used for advertising 



378 

except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

Sec. 4. Interference with Another's Contracts. 

No member of the industry shall attempt to induce the breach 
of an existing contract between a competitor and his customer or 
source of supply; nor shall anj^ such member interfere with or 
obstruct the performance of such contractual duties or services. 

Sec. 5. Secret Rebates. 

No member of the industry shall secretly offer or make any pay- 
ment or allowance of rebates, refunds, commissions, credits, or 
unearned discounts, whether in the form of money or otherwise, 
nor shall any member secretly extend to certain purchasers special 
services or privileges not extended to all purchasers on like terms 
and conditions. 

Sec. 6. Giving of Prizes, Premiums, or Gifts. 

No member of the industry shall give or offer to give prizes, pre- 
miums, or gifts in connection with the sale of products, or as an 
inducement thereto, by any scheme which involves lottery, misrepre- 
sentation, or fraud. 

Sec. 7. Defamation. 

No member of the industry shall cause the defamation of competi- 
tors by falsely imputing to them dishonorable conduct, inability to 
perform contracts, questionable credit standing, or make other false 
representations or false disparagement of the grade or quality of 
their goods. 

Sec. 8. Threats of Litigation. 

No member of the industry shall publish or circularize threats or 
suits for infringement of patents or trade marks or of any other legal 
jDroceedings not made in good faith, and having the tendency or 
effect of harassing competitors or intimidating their customers. 

Sec. 9. Espionage of Competitors. 

No member of the industry shall secure or cause to be secured con- 
fidential information concerning the business of a competitor by a 
false or misleading statement or representation, or by a false imper- 
sonation of one in authority, or by bribery, or by any other unfair 
method. 

Sec. 10. Advertising. 

Persons engaged in this industry shall be free to carry on advertis- 
ing programs separately and independently, provided, however, that 
the failure to cojnply with the following requirements and regula- 
tions as a basis for fair trade practice advertising shall be considered 
an unfair trade practice : 

(a^ No advertising shall be made which is false or misleading. 

(b) No instrument, discount, or other considerations shall be given 
to any musician or musical organization in return for photograph 
testimonial for use in advertising. 

(c) Photographs and testimonials of individual musicians or musi- 
cal organizations used in connection with advertising shall be used 
only wdien they are photographs and testimonials of players or organ- 
izations Avho actually play and recommend particular makes of 
instruments; who have themselves purchased their instruments and 
who have not received any excessive discount, allowance, cash, or any 
other valuable consideration to induce them to buy or to recommend 



379 

or to endorse such particular instruments. All such testimonials 
must be dated and the dates thereof printed in eacli advertisement. 

(d) No organization or its director shall be advertised in such 
a manner as to imply that more of a certain make of instruments 
are in use than are actually in use in such organization. Reference 
to such make of instrument must in all cases be specific as to the 
number in use. 

(e) No manufacturer shall place advertising in programs or other 
publicity material of any musical organization, or contribute any 
part of the cost of such program or other publicity material. 

Sec. 11. 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 com- 
plaint, finding, and order, that any practice or method is inifair, 
providing that such adjudication or holding is not inconsistent with 
any provision of the Act or of this Code. 

Article VIII — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sion 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 or amended on the basis of experience or changes in cir- 
cumstances, such modifications or amendments to be based upon ap- 
plication to the Administrator and such notice and hearing as he 
shall specify, and to become effective on approval of the President, 
unless otherwise provided. 

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 discrimi- 
nate against small enterprises. 

Article X — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made more clifficult 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 
ag possible, be limited to actual additional increases in the seller's 
costs. 

Article XI — EpFECTiMi: Date 

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



Approved Code No. 273. 
Registry No. 1G40-05. 



O 



Approved Code No. 274 
CODE OF FAIR COMPETITION 



FOR THE 



SAW AND STEEL PRODUCTS MANUFACTURING 

INDUSTRY 

As Approved on February 10, 1934 



ORDER 



Approving Code of Fair Competition for the Saw and Steel 
Products 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 Saw and Steel Products Manufacturing Industry, 
and hearings have 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 provisions of Sections 1 and 3, Article VI, insofar as they prescribe 
the filing of prices, lists, terms, and conditions of sale with the Code 
Authority be and they are hereby stayed pending my further Order 
either within a period of sixty 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 Industrial Recovery. 

Approval recommended: 
W. A. Harriman, 

Division Administrator, 

Washington, D.C, 

February 10, 1934. 

39355° 376-46 34 (381) 



REPORT TO THE PRESIDENT 

The President, 

The White. House. 
Sir: This is the report of the Code of Fair Competition for the 
Saw and Steel Products Manufacturing Industry, as revised after 
a Public Hearing held in Washington on the 7th day of December in 
accordance with the provisions of the National Industrial Recovery 
Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employment is limited to 8 hours per day and 40 hours per week 
with the exception of those employees engaged in emergency mainte- 
nance and/or repair work or on emergencies occasioned by the necessity 
for services of specially skilled employees who cannot be replaced. 
Overtime in excess of 8 hours in any 24-hour period or in excess of 
40 hours in any 7-day period shall be paid for at one and one half 
times the normal rate. 

Minimum wages of 40 cents per hour for males and 35 cents per 
hour for females on light work are established, but female em.ployees 
performing substantially the same work as male employees shall 
receive the same rate of pay as male employees; and where they dis- 
place men they shall receive the same rate of earnings as men. 

Clerical employees shall not be paid less than $15.00 per week. 

ECONOMIC EFFECT OF THE CODE 

In April 1932, this Industry, which comprises approximately 75 
firms, employed 1,933 persons. Since the adoption of the 40-hour 
week as provided in this Code, employment has increased to 2,717 
persons in September 1933, or an increase of 53 percent. 

The average weekly wage in xlpril 1933, was $15.02, but operation 
under the provisions of this Code raised this average to $19.91, a gain 
of 32 percent. Labor costs comprise approximately 45 percent of the 
dollar value of sales. 

The invested capital of the Industry is about $20,000,000, and the 
average annual value of its products over the past 5 years is $13,000,- 
000. Any improvement in the lumber business, which is the market 
for fully 80 percent of its products, will cause immediate improvement 
in this Industry. 

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 proceedings 
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 

(382) 



383 

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 com- 
petitive practices, by promoting the fullest possible utilization of the 
present productive capacity of industries, by avoiding undue restric- 
tion of production (except as may be temporarily required), by in- 
creasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving unem- 
ployment, by improving standards of labor and by otherwise rehabili- 
tating 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 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 admis- 
sion 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. 
February 10, 1934. 



CODE OF FAIR COMPETITION FOR THE SAW AND STEEL 
PRODUCTS MANUFACTURING INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are estabhshed as a Code of 
Fair Competition for the Saw and Steel Products Manufacturing 
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 "Saw and Steel Products Manufacturing 
Industry" or "Industry" as used herein is defined to mean the manu- 
facture for sale of sa^vs of all lands and descriptions, and accessories 
thereto incident to the care, upkeep, and maintenance of wood-cutting 
saws, which accessories are not recognized as the constituents of major 
basic industries. This Industry likewise includes under its jurisdiction 
the manufacture of miscellaneous allied steel products, such as hedge 
shears, trowels, and such products which, generally speaking, are made 
of saw or tool steel and require the processes of hardening, tempering, 
and/or grinding and polishing. The manufacturing of hack saw blades, 
metal-cutting band saw blades, milling cutters, screw slotting cutters, 
and metal-cutting circular saws less than eight inches in diameter is 
exempt from this code. 

Sec. 2. The term "Apprentice" as used herein is any employee 
bound by a legal contract to learn a trade. 

Sec. 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. 

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

Sec. 5. The term "Member of the Industry" as used herein in- 
cludes anyone engaged in the Industry as above defined, either as an 
employer or on his own behalf. 

Sec. 6. The terms "President", "Act", and "Administrator" as 
used herein shaU mean, respectively, the President of the United 
States, the National Industrial Recovery Act, and the Administrator 
of said Act. 

Article III- — Vv-'orking Hours 

Section 1. Maximum Hours. — No employee shall be permitted to 
work in excess of forty (40) hours in any one (1) week or eight (8) 
hours in any twenty-four (24) hour period beginning at midnight, 
except as herein otherwise provided. 

Sec. 2. Exceptions as to Hours. 

(384) 



385 

(a) Executives and Salesmen. — The provisions of Section 1 above 
shall not apply to either executives and supervisors and their imme- 
diate assistants receiving thirty-five ($35.00) dollars weekly or more, 
or to traveling salesmen. 

(b) Emergency Overtime. — The maximum hours fixed in the fore- 
going section shall not apply to any employee on emergency main- 
tenance or emergency repair work involving breakdowns or protection 
of life or property, or on emergencies occasioned by the necessity for 
services of specially skilled employees which emergencies cannot be 
cared for by the employment of additional men. But in any such 
special case at least one and one half times the normal rate shall be 
paid for hours worked in excess of the maximum provided in Section 
1 above. 

(c) Ordinary Overtime for Seasonal Periods. — The maximum 
hours fixed in Section 1 above shall not apply for eight (8) weeks in 
any twenty-six (26) weeks period, during w^iich overtime shall not 
exceed eight (8) hours in any one (1) week. In any such case at least 
one and one half times the normal rate shall be paid for hours worked 
in excess of eight (8) hours in any twenty-four (24) hour period, or in 
excess of forty (40) hours in any seven (7) day period. 

(d) Reporting Overtime. — All work in excess of the hours provided 
in Section 1 above shall be reported to the Code Authority in such 
detail as may be required. 

Sec. 3. Sunday and Holiday Work.— -Not less than one and one 
half times the regular rate shall be paid for all work performed on 
Sundays, on New Year's Day, on Washington's Birthday, on Memorial 
Day, on the Fourth of July, on Labor Day, on Thanksgiving Day, or on 
Christmas Day — watchmen excepted. 

Sec. 4. Watchmen.— Watchmen shall be permitted to work not in 
excess of forty-eight (48) hours per week. 

Sec. 5. Ernployment by Several Employers. No employer shall 
permit any employee to work for any time w^hich, when totaled with 
that already performed for another employer or employers, exceeds 
the maxinmm permitted herein. 

Sec. 6. Maximum Hours for Working Employers.- — Employers who 
personally perforjn manual work or are engaged in mechanical opera- 
tions shall not exceed the prescribed maximum number of hours. 

Article IV. — Wages 

Section 1. Minimum Wages, (a) No male employee, except as 
hereinafter provided, shall be paid at less than the rate of forty (40) 
cents an hour and no female employee shall be paid less than at the 
rate of thirty-five (35) cents an hour. 

(b) Clerical employees shall be paid at a rate not less than fifteen 
($15.00) dollars per week; provided, however, that office boys and 
girls and messengers shall be paid at a rate not less than eighty (80) 
percent of the minimum salary herein provided, and provided further, 
that the number of such office boys and girls, and messengers so 
paid shall constitute not more than five (5) percent of the total number 
of employees of any one employer, but in any case, such employer 
shall be entitled to employ two (2) such employees. 

Sec. 2. Piece Rates. — This Article establishes a minimum compen- 
sation, irrespective of whether an employee is actually paid on a time 
rate, on a piece rate, or other basis. 



386 

Sec. 3. Females. — 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 nuiety (90) days after the effective date of this Code, 
fUe with the Administrator a description of all occupations in the 
Industry in which both men and women are employed. 

Sec. 4. Apprentices. — Regularly indentured apprentices shall be 
paid a starting rate not less than eighty (80) percent of the minimum 
set forth in Section 1 above. The number of apprentices shall not 
at any time exceed the ratio of one (1) apprentice to ten (10) skilled 
worlonen engaged in production. Copies of all such apprenticesliip 
contracts shall be filed by the employer with the Code Authority. 

Sec. 5. Disabled Employees. — An individual whose earning ca- 
pacity is limited because of age or physical or mental handicap may 
be employed on light work at a wage below the minimum 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. 6. Adjusting Wage Scale. — Within thirty (30) days after the 
effective date of this Code the wages paid all workers whose pay is 
above the minimum shall be equitably adjusted, if this has not already 
been done since May 1, 1933. In making such a readjustment there 
shall be no decrease in wage rates at this time. Within sixty (60) 
days of effective date the Code Authority shall report to the Admin- 
istrator the readjustments made. 

Article V — Additional Labor Provisions 

Section I. Employees shaU have the right to organize and bargain 
collectively through representatives of their own choosing, and shaU 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or in 
self-organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection; provided (a) 
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 (b) that employers shall comply with the maximum 
houj-s of labor, minimum rates of pay, and other conditions of em- 
ployment approved or prescribed by the President. 

Sec. 2. No person under 16 years of age shall be employed in the 
Industry, nor any one under 18 years of age shall be employed at 
operations or occupations hazardous in nature or detrimental to 
health. The Code Authority shaU submit to the Administrator before 
ninety (90) days a list of such occupations. In any State an employer 
shall be deemed to have comphed with this provision, if he shall have 
on file a certificate or permit, duly issued by the authority in such 
State empowered to issue employment or age certificates or permits, 
showing that the employee is of the required age. 

Sec. 3. Within each State this Code shaU not supersede any laws 
of such State imposing more stringent requirements on employers, 



387 

regulating the age of employees, wages, hours of work, health, fire, or 
general working conditions, than under this Code. 

Sec. 4. Employers shall not reclassify employees or duties of 
occupations performed by employees or engage in any other subterfuge 
so as to defeat the purposes of the Act or of this Code. 

Si':c. 5. Eacli emplo3^er shall post in conspicuous places accessible 
to emplo3'eos full copies of this Code. 

Sec. 6. Every employer shall make reasonable provisions for the 
safety and health of his employees at the place and during the hours 
of their employment. 

Article VI — Prices 

Section 1. (a) Within ten (10) days after the effective date of 
this Code each member of the Industry shall file with the Code 
Authority at the office of the Secretary-Treasurer of the Saw Manu- 
facturers Association of the United States, his prices, discount sheets 
and all other conditions of sale. 

(b) Prices filed with the Code Authority shall cover: 
Woodcutting Saws — Alill: Band Saws, wide and narrow; Circular 

Saws, including groovers, dadoes, concave, cylinder, barrel; Straight 
Saws, including crosscuts, drag, mulay, gang. 

Woodcutting Saws — Hardivare: Hand Saws, including pruning, 
keyhole, compass; Buck Saws; Web Saws, Turning, and Felloe; 
Coping, Jig, Jewelers' Saws. 

Circular Metal-Cutting Saws; Saws jor cutting miscellaneous mate- 
rials: Ice Saws, straight and circular; Butchers' Saws, hand and 
band; Cane Knives, Trowels, Hedge Shears, such other classifications 
as the Code Authority may direct. 

(c) In no case shall a member sell at a price other than his filed 
price for the various classes of trade. 

(d) A manufacturer may change his price as filed with the Code 
Authority at any time. A price change shall become effective on the 
tenth day after it is mailed to the office of the Secretary-Treasurer of 
the Saw Manufacturers Association of the United States. When a 
member revises a price, any other member may file a revised price to 
meet the first one. The second price shall become effective on the 
same day as the first. 

(e) Prices filed with the Code Authority shall be open to the in- 
spection of the trade factors as each may be concerned. At the re- 
quest of a member the Code Authority shall mail him such informa- 
tion about filed prices as he requests. 

Sec. 2. (a) No member of the Industry shall sell any product at a 
price below his own individual cost. Any member may, however, 
meet the price competition of any other member whose costs under 
this Code provision are lower. 

(b) Costs shall be determined in accordance with the principles 
enumerated in an adequate cost system formulated by the Code 
Authority with the approval of the Administrator. The Code 
Authority shall, with the approval of the Administrator, specify 
those items of cost which shall be allowable. It is understood that a 
member of the Industry may use any cost system approved by the 
Code Authority and the Administrator. 

Sec. 3. In the event that the Code Authority finds that any filed 
price would cause instability in the market, the Code Authority may 



388 

require the member of the Industry filing such price to establish that 
such price does not involve a net return to such member less than his 
cost determined pursuant to Section 2 above of this Article. Until 
such filed price under scrutiny is held violative of Section 2 above, it 
may remain in effect. * 

Article VII — Unfair Practices 

For the purpose of this Code the following shall constitute unfair 
trade practices: 

Section I. Unethical and False Statements. — No member of the 
Industry shall, either through the medium of his catalog, advertise- 
ment, or any other printed matter, or by his representatives, make 
any false statements or inferences reflecting upon the methods of 
business of his competitors, or make any false and misleading state- 
ments regarding the products or prices of competitors, nor shall he 
defame or disparage competitors directly or indirectly by words or 
acts which untruthfully impugn their business integrity, their ability 
to keep their contracts, their credit standing, or the quality of their 
product. 

Sec. 2. 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 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 above defined. 

Sec. 3. Rebates. — Withholding from or inserting in any invoice 
matter w^hich makes it a false record, wholly or in part of the trans- 
action represented on the face thereof, and the payment or allowance 
of secret rebates, secret refunds, secret credits, unearned discounts, 
whether in the form of money or otherwise, shall constitute unfair 
practices. 

Sec. 4. Trade-in Allowances. — No member of the Industry shall 
take in trade or make allowance on any old or second-hand solid 
or inserted tooth circular saws except upon such terms and conditions 
as may be determined by the Code Authority, nor shall any member 
of the Industry permit his agent to make an over-allowance on any 
such product in violation of this Section. 

Sec. 5. Guarantee. 

(a) No member of the Industry shall replace or make allowances 
on any products because of complaints against their quality, except 
after full examination of such products by the manufacturer producing 
them, and then only when the manufacturer finds that the complaint 
is based on fair and reasonable grounds. Claims entered for faulty 
workmanship or material which are not reported until after the 
product has been largely consumed should not be allowed, but if any 
allowance is made, it shall be on the basis of the amount iised. 

(b) No manufacturer shall replace or make allowance on any band 
saw 6" wide or wider if the saw complained of has been worn down 

* See paragraph 2 of order approving this Code. 



389 

more than %" , unless the saw shows actual defects in steel, such as 
splits. 

Sec. 6. Free Service. — No member of the Industry shall render 
to any purchaser of any products in or in connection with the sale of 
such products any