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

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NATIONAL RECOVERY ADMINISTRATION 

HUGH S. JOHNSON, Administrator for Industrial Recovery 



CODES OF FAIR COMPETITION 

Nos. 287 329 

AS APPROVED 

FEBRUARY 17 -MARCH 10, 1934 

WITH SUPPLEMENTAL CODES, AMENDMENTS, 

EXECUTIVE AND ADMINISTRATIVE 

ORDERS ISSUED BETWEEN 

THESE DATES 



VOLUME VII 




WE DO OUR PART 



UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 



MAY 26 1936 



0^' 



ChargMl to credit wet 
with Siipt. of Documtnts 



• • • • , , • 



CONTENTS 



Industry 



Date ap- 
proved, 
1934 



Page 



CODES OF FAIR COxMPETITION 

Graphic Arts 

Dailv Newspaper Publishing Business 

Cloth Reel 

Photographic Mount : 

Wood Cased Lead Pencil Manufacturing 

Chilled Car Wheel 

Gumming 

Gummed Label and Embossed Seal 

Waterproof Paper 

Fluted Cup, Pan Liner and Lace Paper 

Advertising Distributing Trade 

Wiping Cloth 

Academic Costume 

Lye - 

Sample Card 

Candle Manufacturing Industry and the Beeswax and 

Bleachers Refiners 

Cordage and Twine 

Outdoor Advertising Trade 

Fibre Can and Tube.^ ^-- 

Mica : 

Stay Manufacturing 

Fishery 

Solid Braided Cord 

Fresh Water Pearl Button Manufacturing 

Ready Mixed Concrete 

Narrow Fabrics 

Steel Wool 

Wholesale Coal 

Industrial Safety Equipment Industry and Industrial 

Safety Eciuipment Trade 

Punchboard Manufacturing 

Vacuum Cleaner Manufacturing 

Wrecking and Salvage 

Newspaper Printing Press 

Hide and Leather Working Machine 

Rock and Slag Wool Manufacturing 

Earthenware Manufacturing 

Die Casting Manufacturing 

Textile Print Roller Engraving 

Horseshoe and Allied Products Manufacturing 

Fibre Wallboard 

Machine Applied Staple and Stapling Machine 

Tapioca Dry Products 

Upholstery Spring and Accessories 



Feb. 


17 


1 


Feb. 


17 


69 


Feb. 


17 


85 


Feb. 


17 


97 


Feb. 


17 


109 


Feb. 


17 


129 


Feb. 


17 


139 


Feb. 


17 


151 


Feb. 


17 


163 


Feb. 


17 


175 


Feb. 


17 


187 


Feb. 


17 


199 


Feb. 


19 


209 


Feb. 


19 


221 


Feb. 


19 


231 


Feb. 


20 


243 


Feb. 


21 


257 


Feb. 


24 


273 


Feb. 


24 


285 


Feb. 


24 


297 


Feb. 


26 


315 


Feb. 


26 


327 


Feb. 


26 


349 


Feb. 


26 


359 


Feb. 


27 


371 


Feb. 


27 


387 


Feb. 


28 


397 


Mar. 


1 


409 


Mar. 


1 


421 


Mar. 


2 


439 


Mar. 


2 


449 


Mar. 


3 


459 


Mar. 


5 


473 


Mar. 


6 


485 


Mar. 


6 


497 


Mar. 


S 


513 


Mar. 


8 


527 


Mar. 


8 


539 


Mar. 


8 


551 


Mar. 


10 


565 


Mar. 


10 


579 


Mar. 


10 


593 


Mar. 


10 


605 



(ni): 



CONTENTS— Continued 



Date 



AMENDMENTS 

Electrotyping and Stereotyping, No. 1 1 2-17-34 

Knitting, Braiding and Wire Covering Macliine, No. 1 2-17-34 

Cotton Textile, No. 4 2-21-34 

Cotton Textile, No. 5 2-21-34 

Dailv Newspaper Publishing Business, No. 1 2-24-34 

Graphic Arts, No. 1 2-24-34 

Hotel, No. 1 2-26-34 

Paint, Varnish, and Lacquer Manufacturing, No. 1 3- 2-34 

Construction, No. 1 3- 5-34 

Cotton Garment, No. 2 3-10-34 

Luggage and Fancy Leather Goods, No. 1 3-10-34 

SUPPLEMENTS 

Construction, No. 1 (For General Contractors) 2-17-34 

Fabricated Metal Pi'oduct.s Manufacturing and Metal Finishing 

and Metal Coating, No. 6 (For Shoe Shank Manufacturing).. 2-21 34 
Wholesaling or Distributing Trade, No. 1 (For Upholstery and 

Decorative Fabrics Trade) 3- 6-34 

Fishery, No. 1 (For Fresh Oyster) 3-10-34 

EXECUTIVE ORDERS 

Effect on Cooperatives of Codes of Fair Competition j 2-17-34 

Prescribing Rules and Regulations for the Interpretation and Ap- i 
plication of Certain Labor Provisions of Codes of Fair Com- 
petition as they may affect Handicapped Workers 2-17-34 

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

^ covery Act 2-23-34 

Creation of the National Recovery Review Board 3- 7-34 

Funds for the National Recovery Review Board 3- 9-34 

ADMINISTRATIVE ORDERS 

Approving overhead costs, rules and regulations for the Builders 

Supplies Trade 2-17-34 

IModifying Stay of Section 6, Article VI for the Macaroni In- 
dustry 2-17-34 

Approving overtime work on certain conditions for the Artificial 

Flower and Feather Industry 2-21-34 

Exjjlauation of Article VI, Part 2, Section 8 for the Motion Pic- 
ture Industry 2-21-34 

Further limitation of hours of printing machine operation in the 
^ Finishing Branch of the Cotton Textile Industry 2-23-34 

Establishment of Trade Zones for the Fertilizer Industry 2-26-34 

Regulations governing the posting of Labor Provisions of Codes 

of Fair Competition ' 2-28-34 

Stay of effective date of Article VIII, Section 4 for the Retail 

Jewelry Trade 2-28-34 

Classification of hazardous occupations in the Wool Felt Manu- 
facturing Influstry 3- 2-34 

Extension of time within which to File required reports for the 

Motion Picture Industry 3- 3-34 

Grjinting permanent stay of exemption from Codes of Fair 
Ojini^etition in connection with sales to Hospitals for certain 
Industries ..j 3- 3-34 726 

(IV) 



CONTENTS— Continued 



Date 



ADMINISTRATIVE ORDERS— Continued 

Granting Sheltered Workshops Conditional exemption from 

Codes of Fair Competition 3- 3-34 727 

Hazardous occupations classified for the Men's Garter, Sus- 
pender and Belt Manufacturing Industry 3- 3-34 729 

Permitting overtime under certain conditions for the Women's 

Belt Industry . 3- 6-34 730 

Extending time for presenting plan for adjustment of wages 

above the minimum for the Surgical Dressings Industry 3- 8-34 731 

Index _ _ 733 



(V) 



CODES OF FAIR COMPETITION 



Approved Code No. 287 
CODE OF FAIR COMPETITION 

FOB THE 

GRAPHIC ARTS INDUSTRIES 

As Approved on February 17, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933. for my approval of a Code 
of Fair Competition for the Graphic Arts Industries, and hearings 
having been held thereon and the Administrator having rendered hia 
report containing an analysis of the said Code of Fair Competition 
together with his recommendations and findings with respect thereto, 
and the Administrator having found that the said Code of Fair 
Competition complies in all respects with the pertinent provisions 
of Title I of said Act and that the requirements of clauses (1) and 
(2) of subsection (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by 
Title I of the National Industrial Recovery Act, approved June 16, 
1933, and otherwise, do hereby adopt and approve the report, recom- 
mendations and findings of the Administrator and do order that the 
said Code of Fair Competition be and it is hereby approved, subject 
to the following conditions: 

1. That the provisions of Section 24 of Part I of the Code be and 
same are hereby deleted from the Code; and that all powers and 
duties delegated in the said section to Labor Boards and/or Commit- 
tees are hereby transferred to the appropriate Code Authorities and 
Compliance Boards; 

PROVIDED, however, that the Administrator is authorized to 
appoint a National Graphic Arts Labor Board to consist of five (5) 
members truly representative of emploj^ers, to be appointed b}'^ the 
Administrator on nomination of the National Graphic Arts Co- 
ordinating Committee, if it desires the appointment of such Board, 
and five (5) members truly representative of employees in the 
industry to be appointed by the Administrator on nomination of the 
Labor Advisory Board of the National Recovery Administration, 
if it desires the appointment of such Board; and one (1) disin- 

(1) 



terested member to act as chairman. The Administrator may 
appoint alternate members and the Board may designate such 
regional Boards or temporary labor committees as it deems neces- 
sary. Any and all disputes between employers and employees with 
respect to wages, hours, and other conditions of employment may be 
referred to this Board. When the dispute arises in any industry or 
group of industries as determined by the Administrator under the 
Graphic Arts Code, the employer members shall be nominated from 
the employers of that industry or group, and the employee members 
shall be nominated from the employees in that industry or group. 

2. That the maximum hours of work specified in Sections 21 (d) ; 
Clause (c) of Paragraph A of Section 22; Clause (b) of Paragraph 
B of Section 22; clause (d) of Paragraph A of Section 23, and/or 
any other provisions of the Code concerning hours of work, shall 
not be construed as a minimum work day or work week; 

PROVIDED, that if at any time in any establishment a majority 
of the mechanical employees actually emploj^ed in any trade, 
expresses by written request to their employer a desire to share 
available work with bona fide resident unemployed competent 
mechanics in their particular trade, the number of hours of work 
may be adjusted by mutual agreement, and the parties are hereby 
authorized to proceed in conformity with the principles established 
in clause (6) of Paragraph 2 of Section 21 (d) of the Code and to 
seek the good offices of any agency established by the Code, and/or 
the National Graphic Arts Labor Board hereinbefore established 
by this order. 

3. That the Administrator is hereby authorized to hold such fur- 
ther hearings three months after the effective date hereof, as he 
may prescribe, to determine whether the definitions of any of the 
industries included in the Code shall be modified or eliminated, 
and/or whether such industries or any of them shall continue to be 
Included in the Code. 

4. That the provisions of this Code relating to hours, wages, and 
employment, as well as full and complete copies of this Order, shall be 
posted in a prominent place in the work room of each establish- 
ment subject to this Code. 

6. That no Trade Association or group shall be entitled to continue 
to participate in the administration of the Code one month after the 
effective date unless and until it shall have satisfied the Adminis- 
trator that it has amended or modified its Constitution and/or By- 
laws to conform to the requirements of the National Industrial Re- 
covery Act and of the Code. 

6. That pending the formulation of a compact or code between 
the several states of the United States to insure the sale of prison- 
made products on a fair competitive basis with products not so 
made the provisions of Paragraph (g) of Section 26 of the Code 
applicable to institutions of states or political subdivisions thereof, 
be and they are hereby stayed for ninety (90) days, or further at 
the discretion of the Administrator. 

Approval recommended : 
Hugh S. Johnson, 

A dministrator. 



The following statement shall be published with my Executive 
Order approving a Code of Fair Competition for the Graphic Arts 
Industries. 

I understand that there is some disagreement in the industries on 
the ]3rovisions of Section 2 of my Executive Order. The terms of 
the aforesaid condition were strenuously contended for by certain 
members of the industries; they have been inserted. On the other 
hand these terms were opposed by the Labor Advisory Board and 
by certain of the groups of employees of the Graphic Arts 
Industries. 

In view of the disagreement concerning the application of the 
condition it appears to me desirable to state here that my afore- 
said condition is not to be construed or interpreted in such manner 
as to conflict with Section 7 (a) of the National Industrial Recovery 
Act, nor shall such condition interfere with the right of the 
employees of any locality to express their desire to share regular 
work with bona fide resident unemployed competent mechanics in 
their particular trade or craft and to appeal to all agencies of the 
Government to assist them in the exercise of this right. 

FRANKLIN D. ROOSEVELT. 
The White House, 

Fehrmry 17, 193J^ 



LETTER OF TRANSMITTAL 

The President, 

The White House. 

Sir: I submit herewith and recommend for your approval, with 
the reservations noted below, a Code of Fair Competition for the 
Graphic Arts Industries. This code is the most detailed and com- 
plicated which has thus far been presented to the National Recov- 
ery Administration. In its present form, the Code will cover nearly 
fifty separate and subdivisional industries which presented their 
own codes of fair comjDetition. With two exceptions — Photo- 
Engraving and Electrotyping and Stereotyping — practically every 
branch of the Graphic Arts Industries which is competitive with 
another branch has been brought under this basic code. 

The amalgamation of the fifty odd codes into one basic code is, to 
my mind, a unique achievement. The Graphic Arts Industries, 
hitherto divided into, at worst, hostile, and at best, malevolently 
neutral groups, will now have an opportunity to show what they 
can do in respect of industrial self-government. On the manufac- 
turing side of the industry, four major groups — relief printing 
(with five constituent industries); lithographic printing; intaglio 
printing (with four constituent industries) ; service groups (with 
six constituent industries) — are under joint administrative control. 
Within the provisions of the code are also seventeen product groups 
which will govern themselves in respect of fair trade practices, 
leaving to the industries previously mentioned, the task of adminis- 
tering the code in respect of its provisions relating to labor. Be- 
cause of the number of groups covered by the Code it has been im- 
possible in every case to insert the minimum wage rates and the 
lair trade practice provisions. The Code is complete, however, so 
far as the major portions of the Graphic Arts Industries are con- 
cerned, and machinery is provided to fill in the gaps of the Code 
with no further delay. 

Importance of the Industry 

Only four other industries exceed the Graphic Arts Industries in 
the value added to the product by manufacturing. This value in 
normal times is $2,400,000,000 annually. The statistics for the 
Graphic Arts Industries are difficidt to break down. The wage bill 
of tlie industries is in excess of $800,000,000 annually; there are over 
300,000 employees and the periodicals which are published have an 
annual circulation of approximately 180,000,000 copies. These fig- 
ures, chosen almost at random, show the major character of the in- 
dustry and indicate what an achievement it will be if the industrial 
self-government, of which I have spoken, proves to be successful as 
the industry confidently hopes. Further statistics appear in the sev- 
eral reports of the Division of Research and Planning. 

(4) 



In respect of industrial self-government the Code is excellent. So 
far as the hours and wage provisions are concerned, however, the 
Code is by no means so admirable. The reasons for this are dealt 
with at some length in the report which Deputy Administrator 
Lindsay Rogers has made to me and which I append to this letter 
as an appendix. 

Settlement or Labor Disputes 

The Labor Advisory Board objects strenuously to the setup of the 
National Labor Boards. So long as these provisions remain in the 
Code, the Labor Advisory Board will withhold its approval. The 
specific provisions particularly objected to are the requirement that 
the Administrator shall nominate to the Board groups to be equally 
and truly representative of the two leading types of employer-em- 
ployee relationships " and the minute circumscription of the powers 
of the Board so that employers have easier access to it than have em- 
ployees. The Labor Advisory Board recommends that these sec- 
tions be stricken from the Code. The Deputy Administrator ap- 
proves. I concur in their recommendation and suggest that your 
order of approval set up a National Labor Board and offer its good 
offices to the industry for the settlement of all disputes. 

HOUES 

The Code provides for a standard work week of fortj'^ hours. 
This vrill, in many sections of the country, mean a reduction of the 
maximum work week now prevailing but the forty hours are in 
excess of the hours now being worked in many sections of the 
country. Unemployment in this industry is extremely acute, as 
the reports from the Division of Research and Planning clearly 
set forth. It is desirable that the available employment be spread 
so far as possible without undue hardship to either employers or 
employees. One method of doing this has been agreed to by the 
American Newspaper Publishers' Association and appears in the 
Code for the Daily Newspaper Publishing Business. The present 
Graphic Arts Code contains substantially identical provisions a3 
applying to the daily newspapers which, by reason of their mem- 
bership in the National Editorial Association, may come under the 
present Code. There seems to me to be no reason why other 
branches of the printing industry under the Graphic Arts Code, 
if they so desire^ should not use the same method of sharing the 
work and I recommend that appropriate provision for this be made 
in your Order of Approval. 

Other Conditions of Approval 

I recommend specifically that the Order of Approval make two 
other stipulations : 

(1) The Code omits the provision to be found in many codes re- 
quiring employers to post m their plants the provisions on hours 
and wages. It seems to me particularly important that this be done 
in the present case because of the very complexity of these provisions. 

(2) The coordination of nearly fifty codes into one basic code is 



frankly experimental. As I have said above, two industries which 
are properly part of the Graphic Arts — Photo-Engraving and Elec- 
trotyping and Stereotyping — have been left out and I am recom- 
mending that in respect of the basic Code and in respect of these two 
separate codes, the Orders of Approval stipulate that the separate- 
ness of jurisdiction is to continue for three months and then is to be 
reconsidered. This does not mean that at the end of three months 
any changes of the Code will be proposed. It simply means that at 
the end of three months Photo-Engraving and Electrotyping and 
Stereotyping may be put under the basic code or that, conversely, 
certain subdivisional mdustries now under the basic code may be 
given a separate status. 

Findings 

The Administrator finds that : 

(a) The Code complies in all respects with the pertinent provi- 
sions of Title I of the Act, including without limitation subsec- 
tion (a) of Section 7 and subsection (b) of Section 10 thereof; 
and that 

(b) The proposing associations impose no inequitable restrictions 
on admission to membership therein and are truly representative of 
the Graphic Arts Industries ; and that 

(c) The Code is not designed to promote monopolies or to elimi- 
nate or oppress small enterprises and will not operate to discrimi- 
nate against them, and will tend to effectuate the policy of Title I 
of the National Industrial Recovery Act. 

I recommend that the Code be approved, with the conditions in 
the order of approval as specified above. 
Eespectfully, 

Hugh S. Johnson, 

A dministrator. 
February 16, 1934. 



CODE OF FAIR COMPETITION 

FOR THE 

GRAPHIC ARTS INDUSTRIES 



CONTENTS 
Part I 



Article I — Administration 
Section 1. Definitions. 

Section 2. General Administrative Provisions. 
Section 3. National and Regional Code Authorities. 
Section 4. National and Regional Compliance Boards. 
Section 5. National Graphic Arts Coordinating Committee. 
Section 6. National Product Groups. 
Section 7. Extra-Code Competition. 
Section 8. Executory Contracts. 
Section 9. Penalties for Violation. 
Section 10. Complaints. 
Section 11. Appeals. 
Section 12. Amendments. 
Section 13. Presidential Powers. 

Section 14. Participation and Membership Restrictions. 
Section 15. Monopolies. 
Section 16. Liabilities. 
Section 17. Reservations. 
Section 18. Effective Date and Expiration. 

Article II — Employment, Wages, Hours, etc. 

Section 19. General Provisions. 

Section 20. Non-mechanical Employees. 

Section 21. Mechanical Employees. 

Section 22. Mcclianical Employees (continued). 

Section 23. Mechanical Employees (continued). 

Section 24. Labor Boards. 

Section 25. Temporary Releases. 

Article III — Maintenance of Fair Competition 
Section 26. Accounting and Cost Finding. 
Section 27. Unfair Practices. 

Schedules — 

Scliedule A. 
Schedule B. 

P.\KT II 

Appendices. 



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 Graphic Arts Industries and shall be binding upon 
every person engaged therein. 

29220° 296-117 ^4 2 (7) 



8 

Article I — Admixistration 

SECTION 1 DEFINITIONS ^ 

(a) The term '' Graphic Arts Industries,'' as used herein, includes 
all persons who are engaged in publishing or printing, or who use any 
of the processes or partial processes used in printing, or who produce 
any printed matter of whatsoever description, or who sell any printed 
matter of whatsoever description in competition with persons who 
produce such printed matter; excepting, however, persons to the ex- 
tent that they are engaged in publishing and printing daily news- 
papers and who subscribe or assent to the Code of the Daily News- 
paper Publishing Business, submitted December 11, 1933, or persons 
who are engaged in publishing books, or persons who are engaged 
in producing photo-engraved plates, electrotypes, stereotypes or other 
kinds of relief printing plates for sale to others. 

(b) The term "Industry,*' as used herein, is a recognized major 
section of establishments, or group of establishments carrying on 
similar or closely allied businesses, which are to be administered as 
a unit. 

(c) The term " Service Industry," as used herein, is applied to in- 
dicate a group of establishments supplying similar or closely allied 
products or services to or for use by other Graphic Arts Industries. 

(d) The term "National Product Group," as used herein, is de- 
fined to mean an association of establishments organized to promote 
the mutual interests of member establishments m the distribution 
of any particular product or products of the Graphic Arts Industries. 

(e) The term " person " or " persons," as used herein, is defined 
to include, but without limitation, any individual, partnership, asso- 
ciation, corporation, establishment or other form of enterprise. 

(f) The term "printing," as used herein, is defined to mean the 
act or process of printing, impressing, stamping, or transferring 
upon paper or paper-like substances, of any ink, color, pigment, 
mark, character, or delineation, including any and all partial proc- 
esses and services used in printing. 

(g) The term " printed matter," as used herein, is defined to mean 
the finished products of printing, and the products of any and all 
partial processes and services used in printing. 

(h) The term "product," as used herein, is defined to include 
production, product, merchandise, and service. 

(i) The term "employer" or " employers,'" as used herein, is de- 
fined to include all persons engaged in conducting business in any 
of the Graphic Arts Industries. 

(j) The term " employee" or "employees," as used herein, is 
defined to include all individuals hired or employed by any employer, 
as above defined, and the members of the family of any employer 
who are engaged in carrying on any operations within the Graphic 
Arts Industries, whether employed or not; excepting those indi- 
viduals who sfrve in executive, administrative, supervisory, and sales 
capacities. 

(k) The term "apprentice" or "apprentices," as used herein, is 
defined to mean a learner who is emi)l()yed or promoted with the view 
of l(!arning an art or trade, and who is to be advanced to the status 
of journeyman within an accumulated period of learning time. 

> See paragraph .'i of ICx<HUtivo Order approving this Code. 



9 

(1) The term " establishment," as used herein, is defined to mean 
any person or persons, as above defined, engaged in conducting any 
business, or using any of the processes, or producing any of the prod- 
ucts referred to in the definition of the " Graphic Arts Industries," 
including private plants wherein any such business is conducted, or 
any such processes are used, or any such products are produced, 
which are owned or operated by a person or persons not otherwise 
subject to this Code. 

(m) The term "metropolitan-area " and " nonmetropolitan-area," 
as used herein, shall have the same meaning as those terms in use 
bjT^ the United States Department of Commerce, Bureau of Census 
publication entitled " Metropolitan Districts," based on the 15th Cen- 
sus of the United States : 1930. 

(n) The terms " region " and " regional," as used herein, are 
defined to mean or refer to such geographical divisions as the 
National Compliance Boards or the National Code Authorities may 
set up for local government. Such division may be by zones, states, 
counties, cities, towns, villages, districts or localities, or any com- 
bination or part thereof. 

(o) The term " locality," as used herein, is defined to mean a vil- 
lage, town or city and its immediately surrounding local trade area 
as determined by the National Code Authority concerned. 

(p) The term "National Code Authority," as used herein, is de- 
fined to mean the administrative agency of an Industry, or a Service 
Industry. 

(q) The term " National Graphic Arts Coordinating Committee," 
as used herein, is defined to mean the coordinating agency of the 
Graphic Arts Industries. 

(r) The term " Commercial Relief Printing Establishments," ag 
used herein, is defined to mean establishments engaged in letterpress 
relief printing and/or partial processes commonly used in the pro- 
duction of letterpress relief printing (including such part of the 
production and products of those establishments which publish daily 
newspapers and subscribe or assent to the Code of the Daily News- 
paper Publishing Business, and whose daily newspaper publishing 
business is therefore exempt from the provisions of this Code, and 
such part of the production and products of those establishments, 
not otherwise subject to the provisions of this Code, which do not 
assent to the provisions of this Code governing the Daily Newspaper 
Publishing and Printing Industry, as is represented by the business 
of all such establishments other than the publishing of daily news- 
papers), excepting those establishments publishing and printing all 
other newspapers, advertising newspapers, or periodicals, and book 
manufacturing establishments. 

(s) The term " Newspaper," as used herein, is defined to mean a 
publication issued at regular intervals at least as frequently as once 
a week, devoted mainly to current local news events, and from which 
the publisher derives circulation and/or advertising revenue. 

(t) The term " Periodical," as used herein, is defined to mean a 
publication (other than a newspaper or advertising newspaper) is- 
sued at regular intervals but not less frequently than four times 
per year, and from which the publisher derives circulation and/or 
advertising revenue. 



10 

(u) The term "Advertising Newspaper," as used herein, is defined 
to mean a publication of newspaper format and size, devoted in 
whole or in part to retail news in the form of display advertising 
of one or more advertisers, delivered by carrier without cost to the 
reader, and not published by or in conjunction with any newspaper 
as defined in paragraph (s) of this Section. 

(v) The terms " Governing Body "" and "Administrative Body," 
as used herein, are defined to mean the National Graphic Arts Co- 
ordinating Committee, a National or Regional Compliance Board, 
a National or Kegional Code Authority, a joint cooperative regional 
organization, or the administrative agency of a National Product 
Group. 

(w) The term "Administrator," as used herein, refers to the Ad- 
ministrator for Industrial Recovery. 

(x) The term " President," as used herein, refers to the President 
of the United States of America. 

(y) Population for the purposes of this Code shall be determined 
by reference to the last Federal Census. 

SECnOX 2 GENERAL ADMINISTRATIVE PROVISIONS " 

(a) The Graphic Arts Industries, each of which is administered, 
for the purposes of the National Industrial Recovery Act and this 
Code, by a National Code Authority, are as follows : 

A. Relief Printinr/ Process Group of hidustrles. 

A-1. Commercial Relief Printing Industry. 
A-2. Non-Metropolitan Newspaper Publishing and Print- 
ing Industry. 
A-3. Periodical Publishing and Printing Industry. 
A-4. Book Manufacturing Industry. 
A-5. Daily Newspaper Publishing and Printing Industry. 

B. Lithographic Printing Process Group of Industries. 

B-1. Lithographic Printing Industry. 

C. Intaglio Printing Process Group of Industries. 

C-1. Gravure Printing Industry. 

C-2. Steel and Copperplate Engraving and Printing In- 
dustry. 
C-3. Securities Engraving and Printing Industry. 
C-4. Bank Note Engraving and Printing Industry. 

D. Service Group of Industries. 

D-1. Trade Typesetting Industry. 

D-2. Trade Lithographic Plate Making Industry. 

D-3. Advertising TyP^S^aphy Industry. 

D-4. Trade Mounting and Finishing Industry. 

D-5. Trade Binding and Paper Ruling Industry. 

Definitions of the several Industries, and the National Code 
Authorities by which they shall be administered, are set forth in 
Schechile A, hereto attached, and hereby made a part hereof. 

• Hcc par. 5 of Executive Order approving this Code. 



11 

(b) Provisions of this Code basically applicable to all establish* 
ments within the Graphic Arts Industries are contained in the main 
body of the Code, exceptions which are applicable only to certain 
Industries being made to such provisions. 

(c) Provisions of this Code applicable only to establishments 
within a particular Industry or members of a particular National 
Product Group are contained in appendices hereto attached, and 
are hereby made a part hereof with the same effect as if the pro- 
visions therein contained were set out in the main body of the Code. 

(d) Where the nature of the business in which an establishment 
is engaged, or the product or products it produces, might under the 
definitions set forth in Schedule A subject such an establishment 
to administration under two or more National Code Authorities, 
the largest annual sales volume of such an establishment's product 
shall determine under which National Code Authority such an 
establishment is subject to administration; 

Provided, however, that it shall be the duty of such National Code 
Authority to enforce all the provisions of this Code regulating or 
affecting establishments which might be so subject to administration 
under one or more other National Code Authorities. In any such 
case an establishment shall be subject to assessment (for code ad- 
ministration purposes) by only one National Code Authority; 

Provided, further, that an establishment that might, as above de- 
scribed, be so subject to administration under two or more National 
Code Authorities, may, if it desires, upon agreement by the different 
National Code Authorities concerned, be deemed to be subject to the 
administration of the two or more National Code Authorities and in 
any such latter case it shall be given equitable representation on each 
such National Code Authority, and bear its equitable share of the 
costs of administering this Code by each such National Code Au- 
thority, the share as between National Code Authorities being de- 
termined by agreement of the National Code Authorities concerned, 
and so assessed as to prevent duplication of assessment. Each 
National Code Authority shall adopt any necessary provisions to 
make this paragraph effective. 

(e) In the event that any proceeding comes on for hearing be- 
fore a governing body, in which proceeding the establishment, with 
which a member of such governing body is identified or connected 
in any way, is a party or has a peculiar financial interest, such mem- 
ber shall be disqualified from acting with relation to such proceed- 
ing. In case of any such disqualification, the body designating such 
member shall be entitled to designate a substitute to sit as a mem- 
ber of such governing body temporarily during the consideration 
and determination of any such proceeding. 

SECTION 3 NATIONAL AND REGIONAL CODE AUTHORITIES 

(a) There shall be designated for each Industry subject to this 
Code and which is listed in Section 2 hereof an administrative body 
which shall act as National Code Authority for the Industry. 

(b) It shall be the function and duty of each National Code 
Authority to administer all of the provisions of the Code relating to 
its Industry, except as otherwise specifically in this Code provided ; 
and all powers, authority, and duties relating to the administration 



12 

and enforcement of this Code, except to the extent that they have 
been by the provisions hereof otherwise conferred and imposed, are 
reserved to the Xational Code Authorities. In such enforcement a 
National Code iVuthority may interpret the provisions hereof and 
the same shall be binding upon all parties unless and until reviewed 
and changed on appeal; provided, that a National Code Authority 
shall, within its jurisdiction, enforce, observe and give due effect 
to the decisions of the Graphic Arts National Labor Boards. 

The autonomy of the respective National Code Authorities, except 
as limited by the provisions of this Code, shall not be infringed nor 
curtailed. 

(c) Each National Code Authority may designate the local organ- 
ization in each region, whether now existing or to be organized, 
within the Industry, which shall administer this Code locally; and 
the National Code Authority may delegate to any such designated 
local organization, to be known as a Regional Code Authority, such 
of its duties as it may find advisable, except such as it is prohibited 
from delegating. The duties of such Regional Code Authority and 
its powers to incur assessable expenses shall be those prescribed by 
its National Code Authority. Appeals from any decision, ruling, 
regulation, order or finding of a Regional Code Authority shall lie to 
its National Code Authority. 

Wliere the necessity for economy and coordination of administra- 
tion seems to require some form of regional cooperative operation of 
two or more Regional Code Authorities, any such joint cooperative 
regional organization may be formed with the permission of the 
respective National Code Authorities concerned and may carry out 
the code administration functions delegated to it. The expenses of 
such joint cooperative regional organization shall be apportioned as 
between Industries and assessed in such manner as the Regional Code 
Authorities may agree and determine. Appeals from any decision, 
ruling, regulation, order, or finding of such joint cooperative re- 
gional organization shall lie to the National Code Authority to whose 
jurisdiction the appellant is subject. Any such joint cooperative 
regional organization, if formed, may provide procedure for the 
arbitration of disputes between establishments under its jurisdiction 
when such procedure has been agreed to by the establishments con- 
cerned. 

(d) Each National Code Authority shall cooperate with the 
National Product Groups in the administering and enforcement of 
trade practice and other provisions of this Code, and shall develop 
the methods necessary to accomplish this result. It shall be the 
duty of each National Code Authority to enforce all the provisions 
of this Code regulating or affecting establishments within its juris- 
diction which are not members of a particular National Product 
Groiij) but which produce the product or products with which such 
National Product Group is identified. 

(e) Each National Code Authority shall be res[)onsible for the 
payment of its share of the expense of administering this Code, and 
shall have the power to collect the amount of its sliare of said 



13 

expenses from the establishments within its jurisdiction b}^ assess- 
ment in such proper and equitable manner as it may determine. 
The share of each National Code Authority of said expenses shall 
include the total operating expenses, both national and regional, 
of its own organization, and its share, as apportioned by the pro- 
visions of Sections 4 and 5, of the operating expenses of the National 
Graphic Arts Coordinating Committee and of its National and 
Kegional Compliance Boards, and its share, as allocated under the 
provisions of Section 24, of the expenses of the Graphic Arts Labor 
Boards and Temporary Labor Committees with which it is 
concerned. 

(f ) Each National Code Authority shall have the power to require 
any establishment within its jurisdiction to submit, through a confi- 
dential agency designated by the National Code Authority, any 
statistics, data, or information reasonably necessary to enable it 
to prescribe accounting methods, cost finding methods, or cost de- 
termination schedules, or to supply the ]Sational Graphic Arta 
Coordinating Committee with^ the data and statistics required by 
the President or reasonably pertinent to the effectuation of Title I 
of the National Industrial Recovery Act, or otherwise to administer 
the provisions of this Code, or to determine any issue coming before 
it for adjudication. Such statistics, data, or information shall be 
certified by a certified public accountant, if so required by the 
National Code Authority. In case any such establishment shall 
fail or refuse to furnish such statistics, data, or information, or 
to have same certified if required, the National Code Authority may 
cause the books and records of such establishment to be examined 
by a certified public accountant for the purpose of obtaining such 
statistics, data, or information. The powers contained in this para- 
graph shall not be delegated by the National Code Authority. All 
such statistics, data, or information so submitted or obtained shall 
be kept confidential and shall not be revealed except to a govern- 
mental agency entitled thereto, provided that summaries and com- 
pilations thereof, which do not disclose the identit}^ of any estab- 
lishment, may be prepared and furnished to the National Compli- 
ance Board within whose jurisdiction such National Code Authority 
falls, and to the National Graphic Arts Coordinating Committee. 

(g) Each National Code Authority shall have the power to adopt 
such b^^-laws, rules and regulations, not inconsistent with the pro- 
visions of this Code, as may be deemed advisable for the conduct 
of its proceedings and the administration and enforcement of this 
Code. 

SECTIOX 4 NATIONAL AND REGIONAL COMPLIANCE BOARDS 

(a) There shall be set up for each of the groups of National Coda 
Authorities of the Industries subject to this Code and listed in Sec- 
tion 2 hereof a National Compliance Board consisting of not less 
than three members and chosen by the National Code Authorities of 
the Industries concerned. 



14 

(b) For the first year the membership of the National Compliance 
Boards and the Indiistr^^ re})resentation thereon shall be as follows: 

National Relief Printing Coiiipliance Board: Members 

A-1. Commercial Relief Printing Industry 7 

A-2. Non-Metropolitan Newspaper Publishing and 

Printing Industry 4 

A-3. Periodical Publishing and Printing Industry 3 

A-4. Book Manufacturing Industry 1 

A-5. Daily Newspaper Publishing and Printing 

Industry 2 

Total 17 

National Lithographie Printing Com,pliance Board : 

B-1. Lithographic Printing Industry 5 

National Intaglio Printing Compliance Board: 

C-1. Gravure Printing Industry 2 

C-2. Steel and Copperplate Engraving and Print- 
ing Industry 2 

C-3. Securities Engraving and Printing Industry 2 

C-4. Bank Note Engraving and Printing Industry 2 

Total 8 

National Service C ompliance Board: 

D-1. Trade Tj^pesetting Industry 1 

D-2. Trade Lithographic Plate Making Industry 1 

D-3. Advertising Typography Industry 1 

D-4. Trade Mounting and Finishing Industry 1 

D-5. Trade Binding and Paper Ruling Industry 1 

Total 5 

The members of National Compliance Boards shall be designated 
within 30 days after the effective date of this Code, and annually 
thereafter. 

Each National Code Authority shall designate alternate members, 
and in the absence of any member his designated alternate shall be 
entitled to sit upon said Board. In the event of the resignation of 
any member or alternate, or in the event that any member or alter- 
nate can not act for any reason, the National Code Authority orig- 
inally designating such member or alternate shall designate his 
successor. 

If at any time the proportionate representation of the Industries 
on any National Compliance Board appears inequitable, such propor- 
tionate representation may be changed by agreement of all the Na- 
tional Code Authorities concerned, or in the event such National Code 
Authorities do not agree, by the National Graphic Arts Coordinat- 
ing Committee; provided, that at no time shall the representation of 
any Industry on a National Compliance Board be less than one mem- 
ber, nor (where more tlian two industries are concerned) more than 
one-half of the total membership of such Board. 

Tlic members of any National Compliance Board shall be subject 
to recall and replacement at any time by the respective National Code 
Authorities designating such m( nibers. 



15 

Each National Product Group shall be entitled to designate one 
special member of each National Compliance Board, who shall sit 
upon any such Board as a full member thereof with one vote when- 
ever any issue affecting the particular interests of said National 
Product Group, or any controversy or appeal involving the distribu- 
tion of the product or products with which such Group is identified 
and to which said National Product Group or a member thereof is a 
party, is being considered and determined by such Board. 

(c) Each member of a National Compliance Board shall have an 
equal vote upon all questions, motions, resolutions, or issues coming 
before said Board. 

The National Compliance Boards shall not be enlarged to include 
members designated otherwise than as above provided, except by the 
unanimous approval of all the National Code Authorities concerned. 
There shall be no non-voting or observer members. 

(d) Each National Compliance Board, as to the National Code 
Authorities and establishments, including members of National Prod- 
uct Groups, under its jurisdiction, shall have the power and duty : 

1. To require any National Code Authority or any establishment, 
within the jurisdiction of said Board to submit through a confiden- 
tial agency designated by the National Compliance Board, any sta- 
tistics, data, or information reasonably necessary to enable it to 
determine any issue coming before it for adjudication. Such sta- 
tistics, data, or information shall be certified by a certified public 
accountant, if so required by the National Compliance Board. In 
case any such National Code Authority or establishment shall fail 
or refuse to furnish such statistics, data, or information, or to have 
same certified if required, the National Compliance Board may cause 
the books and records of such National Code Authority or establish- 
ment to be examined by a certified public accountant for the purpose 
of obtaining such statistics, data, or information. The powers con- 
tained in this paragraph shall not be delegated by the National Com- 
pliance Board. All such statistics, data, or information so submitted 
or obtained shall be kept confidential and shall not be revealed ex- 
cept to a governmental agency entitled thereto, provided that sum- 
maries and compilations thereof which do not disclose the identity 
of any establishment may be prepared and furnished to the National 
Code Authority concerned and to the National Graphic Arts Coordi- 
nating Committee. 

2. To adjust differences that may arise betAveen — 

(a) National Code Authorities, 

(b) A National Code Authority and an establishment 

under another National Code Authority, 

(c) Establishments under two or more different National 

Code Authorities, 

(d) A National Product Group and a National Code Au- 

thority or an establishment under a National Code 

Authority, 
and to hear and determine appeals from National Code Authorities 
within its jurisdiction, and from Regional Compliance Boards des- 
ignated by it; it being understood that all problems of newspaper 
and periodical editorial, circulation and advertising matters arising 

29220° 296-117 34 3 



16 

in the application of this Code are to be handled exclusively by the 
National Code Authorities concerned, subject only to the rights of 
appeal to the National Graphic Arts Coordinating Committee and 
the National Recovery Administration. The National Compliance 
Boards shall meet at least once a month. 

3. To designate or cause to be designated locally such Regional 
Compliance Boards as in its judgment may be necessary, and to dele- 
gate to such Regional Compliance Boards such of its duties and powers 
as it finds advisable, except such as it is prohibited from delegating. 
Each such Regional Compliance Board shall consist solely of repre- 
sentatives of the several National Code Authorities, or of regional 
organizations of such National Code Authorities, of the Industries 
concerned and shall be set up so as to insure equitable representation 
of the Industries concerned; provided, that where more than two 
Industries are concerned no Industry shall be represented on any 
Regional Compliance Board by more than one half the membership 
thereof, except with the consent of all regional organizations con- 
cerned. Appeals from an}' decision, ruling, regulation, order, or 
finding of a Regional Compliance Board shall lie to its National 
Compliance Board, 

Where the necessity for economy and coordination of administra- 
tion seems to require some form of regional cooperative operation of 
two or more Regional Compliance Boards, any such joint coopera- 
tive regional organization ma}' be formed with permission of the 
respective National Compliance Boards concerned and may carry 
out the Code administration functions delegated to it. The expenses 
of such joint cooperative regional organization shall be apportioned 
as between Industries and assessed in such manner as the Regional 
Code Authorities concerned may agree and determine. Appeals 
from any decision, ruling, regulation, order, or finding of such joint 
cooperative regional organization shall lie to the National Com- 
pliance Board to whose jurisdiction the appellant is subject, 

4. To determine and collect its costs of administration, as herein 
provided, from the National Code Authorities, within its jurisdic- 
tion, or in default thereof from the respective establishments within 
the particular jurisdiction of any National Code Authority so 
defaulting. 

Each National Compliance Board shall prepare or have prepared 
an annual budget, which budget and any revision thereof must be 
Bubmitted in writing to its members at least two weeks before the date 
of the meeting at which action on such budget or revision thereof 
is to be taken. Any .such annual budget exceeding in amount the 
sum of $20,000 shall be subject to the approval of a majority of the 
National Code Authorities concerned. Members of National Com- 
pliance Boards and Regional Compliance Boards shall serve with- 
out compensation. 

The necessary individual traveling expenses of members of a Na- 
tional Compliance Board shall be paid by the National Code Author- 
ity which they respectively represent. Any other necessary expenses 
of each National Compliance Board shall bo assessed against the 
National Code Authorities of the Industries represented on such 
Board in proportion to the member representation of such National 
Code Authorities on such Board. 



17 

Any necessary expenses of each Regional Compliance Board shall 
be paid by the regional organizations represented on such Board in 
proportion to the member representation. 

5. To adopt such rules and regulations, not inconsistent with the 
provisions of this Code, as may be deemed advisable for the govern- 
ment of such National Compliance Board and the conduct of its 
proceedings. 

(e) The powers, authority, and duties of National and Regional 
Compliance Boards relating to the administration and enforcement 
of this Code shall be strictly limited to those hereinabove specifically 
granted or imposed. 

Section 5 — national graphic arts coordinating committee 

(a) There is hereby created a self-governing national coordinating 
committee to be known as the National Graphic Arts Coordinating 
Committee. 

(b) The National Graphic Arts Coordinating Committee shall 
consist of twenty members designated by the respective National 
Compliance Boards as follows : 

Members 

National Relief Printing Compliance Board 10 

National Lithographic Printing Compliance Board 4 

National Intaglio Printing Compliance Board 4 

National Service Compliance Board 2 

and in addition thereto, there shall be one member without vote 
to be appointed by the Administrator to serve without expense to 
the Industries. The Administrator may appoint alternates for said 
member. 

The member appointed by the Administrator may sit upon any 
National Code Authority as a member thereof without vote when- 
ever requested by such National Code Authority or by the National 
Graphic Arts Coordinating Committee. 

The members of the National Graphic Arts Coordinating Com- 
mittee shall be designated within 35 days after the effective dato 
of this Code, and annually thereafter. 

Each National Compliance Board in designating members of the 
National Graphic Arts Coordinating Committee shall designate only 
persons from among those that have been nominated for such mem- 
bership by the National Code Authorities under its jurisdiction (for 
this purpose National Code Authorities A-2 and A-5 shall be con- 
sidered as though they are one National Code Authority; provided, 
however, that National Code Authorities A-2 and A-5 shall have 
at least one member each on the National Graphic Arts Coordinat- 
ing Committee) ; when the number of members to be designated by 
a National Compliance Board is less than the number of National 
Code Authorities, not more than one nominee of any one such Code 
Authority shall be designated ; when the number of members equals 
or exceeds the number of National Code Authorities, the National 
Compliance Board shall designate an equal number of members 
from the nominees of each National Code Authority, any extra 
member or members being designated from the nominees of the 
Code Authority or Code Authorities of the Industries concerned 



18 

having respectively the largest payrolls (for this purpose National 
Code Authorities A-2 and A-5 shall be considered as though they 
are one National Code Authority). 

Each National Code Authority shall nominate alternate members, 
and each National Compliance Board in designating alternate mem- 
bers of the National Graphic Arts Coordinating Committee shall 
designate only persons from among those that have been nominated 
by the National Code Authorities within its jurisdiction. In the 
absence of any member his designated alternate shall be entitled to 
sit upon said committee. 

In the event of the resignation of any member or alternate, or 
in the event that any member or alternate can not act for any reason, 
the National Code Authority originally nominating such member 
or alternate shall nominate his successor and the National Compli- 
ance Board shall designate the nominee so selected. 

The members of the National Graphic Arts Coordinating Com- 
mittee shall be subject to recall and replacement at any time by the 
respective National Code Authorities nominating such members. 

Each National Product Group shall be entitled to designate one 
special member of the National Graphic Arts Coordinating Com- 
mittee who shall sit upon said Committee as a full member thereof 
with one vote w^henever any issue affecting the interests of said Na- 
tional Product Group, or any controversy or appeal involving the 
distril)ution of the product or products with which such Group is 
identified, and to which said National Product Group or a member 
thereof is a party, is being considered and determined by said Com- 
mittee. Similarly, any National Code Authority not directly rep- 
resented on the National Graphic Arts Coordinating Committee by a 
nominee of such National Code Authority shall be entitled to desig- 
nate one special member of the National Graphic Arts Coordinating 
Committee who shall sit upon said Committee as a full member there- 
of with one vote whenever au}^ issue affecting the interests of such 
National Code Authority, or of an establishment within its jurisdic- 
tion, is being considered and determined by said Committee. 

(c) Each member of the National Graphic Arts Coordinating 
Committee shall have an equal vote upon all questions, motions, reso- 
lutions, or issues coming before said Committee. 

The National Graphic Arts Coordinating Conmiittee shall not be 
enlarged to include members designated otherwise than as above 
provided, except by the unanimous consent of all National Code 
Authorities. 

(d) The National Graphic Arts Coordinating Committee shall 
have the power and duty : 

1. To collect, through a confidential agencj of its designation, from 
the National ('ode Authorities and the National Product Groups all 
needed data and statistics called for by this Code or required by the 
President, or reasonably pertinent to the effectuation of Title I of the 
National Industrial Recovery Act, and to file same with the President 
or the National Recovery Administration; and to enforce the sub- 
mission of such data and statistics by establishments to their respec- 
tive National Code Authorities and by members of National Product 
Groups to their respective National Product Groups in case such 
National Code Authority or National Product Group shall fail or 



19 

refuse to collect such data and statistics, or enforce such submission.. 
All such data and statistics so submitted or obtained shall be kept 
confidential and shall not be revealed except to a governmental 
agency entitled thereto, provided that summaries and compilations 
thereof which do not disclose the identity of any establishment may 
be prepared and furnished to the National Compliance Board con- 
cerned or to the National Code Authority concerned or the National 
Product Group concerned. 

2. To coordinate the ndes and regulations of National Code Au- 
thorities and of National Product Groups concerning the adminis- 
tration of this Code, and to review and coordinate accounting prin- 
ciples and methods, cost finding principles and methods, departmental 
economic hourly cost rates and production standards, cost determina- 
tion schedules, and stabilization and trade practices, but only to the 
extent that will insure fair competition. 

3. To adjust differences that may arise between — 

(a) National Compliance Boards, 

(b) A National Compliance Board and a National Code 
Authority under another National Compliance Board 
or an establishment under such a National Code 
Authority, 

(c) National Code Authorities or establishments thereof 
under two or more different National Compliance 
Boards, 

d) National Product Groups, 

'e) A National Product Group and a National Compliance 
Board, 

and to hear and determine appeals from National Compliance 
Boards, National Code Authorities, and National Product Groups. 

4. To represent any National Compliance Board, National Code 
Authority, National Product Group and/or establishment before the 
National Recovery Administration, when called upon by such 
National Compliance Board, National Code Authority, National 
Product Group, and/or establishment. 

5. To require each National Code Authority and the administra- 
tive agency of each National Product Group to furnish at least once 
a year evidence showing that it is truly representative of its Industry 
or Product Group, and to change any National Code Authority or 
the administrative agency of any National Products Group whenever 
after a proper hearing the National Graphic Arts Coordinating 
Committee shall determine that any such National Code Authority 
and any such administrative agency is no longer representative of 
its Industry or Group. No such action shall be taken except upon the 
affirmative vote of two-thirds of the members of the National Graphic 
Arts Coordinating Committee. 

6. To incur and authorize the payment of its necessary salaries 
of employees and expenses of administration, including the employ- 
ment of an executive secretary and such clerical help or services, 
which are to be prescribed in an annual budget, which shall not ex- 
ceed the total ot $50,000 unless any larger budget shall have first 
been referred to and approved by three-fourths of the National Code 
Authorities. 



20 

7. To determine and collect its costs of administration, as provided 
herein, from the various National Code Authorities, or in default 
thereof, from the respective establishments within their particular 
jurisdiction. Said costs of administration shall be assessed against 
the respective National Code Authorities in the proportion which 
the total annual payroll of establishments included in such National 
Code Authorities bears to the total annual payroll of establishments 
included in all National Code Authorities. 

8. To collect and disburse funds necessary to defray expenses of 
Graphic Arts National and Regional Labor Boards and Temporary 
Labor Committees as provided in Paragraph 3 of Section 24. 

9. LTpon the application of any National Code Authority, to grant 
exemption from, or to provide for variation in application of, any of 
the provisions of this Code which, in the judgment of the National 
Graphic Arts Coordinating Committee, work an unintended or un- 
justifiable hardship upon an establishment or group of establish- 
ments because of peculiar circumstances to which it or they are 
uniquely subject. Any action taken in this respect shall be subject 
to review by the Administrator. 

10. To bring to the attention of the Administrator provisions of 
other codes which apparently conflict with the provisions of this 
Code, or which create unfair competitive conditions, and to make 
recommendations with respect thereto. 

11. To inform the President whenever it is found that importa- 
tion of any product affects adversely the maintenance of standards 
under this Code and to request such action as may be necessary to 
remedy such conditions. 

12. To bring to the attention of the proper National Code Author- 
ities and/or National Product Groups questions arising as to juris- 
diction out of the definitions set forth in Schedules A and B, or 
discrepancies appearing in the provisions contained in the Appen- 
dices and to recommend to such National Code Authorities and/or 
National Product Groups the action to be taken with respect there- 
to: provided, that for a period of 120 days after the effective date of 
this Code the National Graphic Arts Coordinating Committee may 
recommend to the Administrator any amendments to, additions to, 
or eliminations from this Code necessary to correct any such ques- 
tions of jurisdiction or discrepancies, any such amendment, addition 
or elimination to become effective upon approval by the Adminis- 
trator after sucii notice and hearing as he ma}'^ deem advisable. 

13. To adopt such rules and regulations, not inconsistent with the 
provisions of this Code, as may be deemed advisable for the govern- 
ment of said National Graphic Arts Coordinating Committee and 
the conduct of its proceedings. 

(e) The duties of said National Graphic Arts Coordinating Com- 
mittee may be delegated bv it to such agent or agents as it may from 
time to time deem advisable. 

(f) The powers, authority, and duties of the National Graphic 
Arts Coordmating Committee relating to tlie administration and 
enforcement of this Code shall be strictly limited to those herein- 
above specifically granted or imposed. 



21 

SECTIOX G XATIOXAL PRODUCT GROUPS 

(a) A National Product Group shall be truly reiJresentative of 
the sales volume of the particular product or products with which 
the Group is identified. 

(b) National Product Groups are set forth in Schedule B, hereto 
attached and hereby made a part hereof, and said Groups as to all 
matters within their jurisdiction shall be administered by the ad- 
ministrative agencies mentioned in said Schedule. 

(c) Each National Product Group shall have jurisdiction over 
all matters relating to distribution of the particular product or 
products with which the Group is identified, so far as the members 
of the association are concerned, and so far as persons engaged in 
the distribution of such product or products in competition with the 
members of such Group and not otherwise subject to this Code are 
concerned. Each National Product Group shall have the power 
to adjust any differences arising between those within its jurisdiction 
relating to such matters. ^ 

(d) Each National Product Group shall have the power to submit 
to the National Graphic Arts Coordinating Committee, for inclusion 
in the Code, such trade practice provisions as are applicable to the 
particular product or products with which the Group is identified. 
Such provisions, if not inconsistent with the provisions of this Code, 
shall be submitted to the Administrator for approval and when ap- 
proved after such public hearing as he may prescribe shall be 
included in a special appendix to the Code for the National Product 
Group concerned. Trade practice provisions applicable to the par- 
ticular product or products with which a National Product Group 
is identified shall be binding upon all establishments producing such 
product or products and all persons distributing such product or 
products in competition with the producers thereof, whether any 
such establishment or person is a member of such National Product 
Group or not. 

(e) National Product Groups shall have such administrative 
powers in the promotion of the interests of those within its juris- 
diction as are not inconsistent with the provisions of this Code. 
Specifically, they shall have the right to bring to the attention of the 
National Compliance Board concerned any violation of trade prac- 
tices by any establishment subject thereto. 

(f ) Each National Product Group shall have the right to require 
those within its jurisdiction to submit, through a confidential agency 
designated by it, any statistics, data, or information regarding the 
sale or distribution of the product or products with which the Group 
is identified reasonably necessary to enable it to administer the mat- 
ters within its jurisdiction or to determine any issue coming before 
it for adjudication. All such statistics, data, or information shall 
be kept confidential and shall not be revealed except to a govern- 
mental agency entitled thereto; provided, that summaries and com- 
pilations thereof, which do not disclose the identity of any member, 
may be prepared and furnished to those within its jurisdiction and 
to the National Graphic Arts Coordinating Committee. 



22 

(g) Expenses of administration of a National Product Group 
shall be equitably assessed against its members by the designated 
administrative agency of such Group. 

SECTION 7 EXTRA-CODE COMPETITION 

No establishment subject to the provisions of this Code when in 
competition in the sale of printed matter or other products, or in 
publishing, with an establishment not subject to the provisions of 
this Code need comply with the provisions hereof relating to pub- 
lishing, sale or distribution, if such provisions are more onerous than 
those to which such competitor is subject; provided, in any such case 
it shall comply with the provisions of any Code to which such com- 
petitor may be subject and shall furnish to its National Code 
Authority full particulars thereof, which particulars shall be trans- 
mitted to the National Graphic Arts Coordinating Committee for 
action thereon as provided in Section 5 (d) 1. 

SECTION 8 EXECUTORY CONTRACTS 

Where the costs under executory contracts entered into prior to 
the eifective date of this Code are increased or decreased by the appli- 
cations of the provisions of this Code, appropriate adjustments of 
such contracts to reflect such increased or decreased costs shall be 
left to the negotiation of the establishment and the customer; and 
it shall be the duty of the National Code Authority concerned to 
promote such equitable adjustments. 

SECTION 9 PENALTIES FOR VIOLATION 

(a) The penalties for the violation of any of the provisions of this 
Code shall be as provided in the National Industrial Recovery Act, 
and the cost of any investigation may be assessed against any estab- 
lishment found guilty of a violation. 

(b) In case a governing body determines that an establishment 
has filed a complaint frivolously or maliciously, it may assess the 
cost of the investigation and the defendant's reasonable cost against 
the complainant. 

SECTION 10 — COMPLAINTS 

(a) All complaints, whether involving a controversy or a charge 
of violation, shall be in writing signed by an establishment, and three 
copies thereof shall be filed with the governing body having juris- 
diction. Copies of such complaint shall be served upon the de- 
fendant or alleged violator and upon his National Code Authority 
by the governing body receiving such complaint at least three days 
before any action is taken thereon by such governing body. 

(b) Where the necessary parties to such a complaint are estab- 
lishments within the jurisdiction of the same National Code Author- 
ity, the proceeding shall be instituted before its Regional Code 
Authority (or before the joint cooperative organization authorized 
by its National Code Autliority), if such a governing body exists, 
and all such ])arties are within the territorial jurisdiction of such 



23 

regional governing body, and if not before the National Code 
Authority. 

(c) Where the necessary parties to such a complaint are estab- 
lishments within the jurisdiction of two or more different National 
Code Authorities, under the jurisdiction of the same National Com- 
pliance Board, the proceedings shall be instituted before its Re- 
gional Compliance Board (or before the joint cooperative regional 
organization authorized by such National Compliance Board), if 
such a governing body exists, and all such parties are within the 
territorial jurisdiction of such regional governing body, and if not 
before such National Compliance Board. 

(d) Where the necessary parties to such a complaint are estab- 
lishments within the jurisdiction of two or more different National 
Code Authorities, within the jurisdiction of different National Com- 
pliance Boards, the proceeding shall be instituted before the joint 
cooperative regional organization authorized by all the National 
Compliance Boards concerned, if any such governing body exists, 
and all such parties are within the territorial jurisdiction of such 
regional governing body, and if not before the National Graphic 
Arts Coordinating Committee. 

(e) Where the necessary parties to such a complaint are members 
of the same National Product Group, and the matter is one over 
which the Group has jurisdiction as defined in Section 6 (c), the 
proceeding shall be instituted before the administrative agency of 
such National Product Group. 

(f) Where the necessary parties to such a complaint are a mem- 
ber of a National Product Group and an establishment not a mem- 
ber of such a National Product Group, both being under the juris- 
diction of the same National Compliance Board, the proceeding shall 
be instituted before its Regional Compliance Board (or before the 
joint cooperative regional organization authorized by such National 
Compliance Board), if such a governing body exists, and all such 
parties are within the territorial jurisdiction of such regional gov- 
erning body, and if not before such National Compliance Board. 

(g) Where the necessary parties to such a complaint are a mem- 
ber of a National Product Group and an establishment not a mem- 
ber of such National Product Group, the parties being under the 
jurisdiction of different National Compliance Boards, the proceed- 
ing shall be instituted before the joint cooperative regional organi- 
zation authorized by all the National Compliance Boards concerned, 
if any such governing body exists, and all such parties are within 
the territorial jurisdiction of such regional governing body, and if 
not before the National Graphic Arts Coordinating Committee. 

(h) No proceeding shall be instituted before the National Graphic 
Arts Coordinating Committee by any establishment or by any mem- 
ber of a National Product Group, except through the National Com- 
pliance Board having jurisdiction over such establishment or 
member. 

(i) No action, suit or other proceeding based upon an alleged 
violation of the provisions of this Code, or involving a controversy 
arising under the provisions of this Code, shall be commenced by 
any establishment or governing body against any establishment as- 

20220° 296-117 34 4 



24 

genting to the provisions of this Code, in any court, state or Federal 
until such alleged violation or controversy shall have been submitted 
for determination in the manner provided for by this Code, and in 
the event that appeals are prosecuted in accordance with the pro- 
visions of this Code, until the National Graphic Arts Coordinating 
Committee shall have determined such issue. 

(j) A person not subject to the provisions of this Code may make 
a complaint of violation of any provision of this Code by filing 
euch complaint in writing, together with all available pertinent in- 
formation, with the National Code Authority or National Product 
Group having jurisdiction over the alleged violator. 

(k) Any governing body having jurisdiction to hear any com- 
plaint may adopt such rules of procedure governing the filing and 
hearing of complaints, not inconsistent with the provisions of this 
Code, as it may deem advisable. 

SECTION 11 APPEALS 

(a) An establishment shall have the right of appeal from any de- 
cision, ruling, regulation, order, or finding of its Regional Code Au- 
thority (or of any joint cooperative regional organization authorized 
by its National Code Authority) to its National Code Authority. 

(b) An establishment shall have the right of appeal from any 
decision, ruling, regulation, order, or finding of its Regional Com- 
pliance Board (or of any joint cooperative regional organization 
authorized by its National Compliance Board) to its National Com- 
pliance Board. 

(c) An establishment shall have the right of appeal from any 
decision, ruling, regulation, order, or finding of its National 
Code Authority to its National Compliance Board and of its Na- 
tional Compliance Board to the National Graphic Arts Coordinating 
Committee. 

(d) A member of a National Product Group shall have the right 
of appeal from any decision, ruling, regulation, order, or finding of 
the administrative agency oi its National Product Group to the Na- 
tional Graphic Arts Coordinating Committee, unless all necessary 
parties are establishments under the jurisdiction of the same Na- 
tional Compliance Board, in which case such appeal shall lie to such 
National Compliance Board. 

(e) National Compliance Boards, National Code Authorities, Na- 
tional Product Groups, establishments, and members of National 
Product Groups shall have the right of appeal from any decision, 
ruling, reflation, order, or finding of the National Graphic Arts 
Coordinating Committee to the National Recovery Administration 
or the President. 

(f) The governing body determining any issue shall notify the 
parties thereto in writing of its decision, ruling, regulation, order, or 
finding, and no person shall be entitled to appeal irom the action of 
such governing body unless he takes an appeal within 20 days after 
he sliall have received such notification. 

(g) All appeals shall be in writing and a copy of each appeal 
fchall be filed with the governing body whose action is appealed from 



25 

at least one day before it is filed with the governing body to which 
such appeal is taken. 

(h) An appellant shall comply with the decision, ruling, regula- 
tion, order, or finding of a National Product Group, a National Code 
Authority, a National Compliance Board, or the National Graphic 
Arts Coordinating Committee, unless the governing body to which 
his appeal is taken shall grant a stay. An appeal from the ruling, 
regulation, order, or finding of regional governing body shall act as 
a stay. 

(i) Any governing body having jurisdiction to hear any appeal 
may adopt such rules of procedure governing appeals taken to it, 
not inconsistent with the provisions of this Code, as it may deem 
advisable. 

SECTION 1 2 AMENDMENTS 

(a) This Code, except as to provisions required by the Act, may 
be amended on the basis of experience or changes in circumstances, 
such amendments 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. 

(b) Except as herein otherwise provided, any amendment, supple- 
ment, or addition to this Code may be submitted to the National 
Graphic Arts Coordinating Committee by any National Code Au- 
thority or any National Product Group. If it affects only the Na- 
tional Code Authority or National Product Group submitting it and 
is not inconsistent with other provisions of this Code it shall be sub- 
mitted by the National Graphic Arts Coordinating Committee to the 
Administrator for approval ; if it affects any National Code Author- 
ity or Authorities other than a National Code Authority submitting 
it, it shall first be submitted to all such National Code Authorities 
affected and if approved by them, shall then be submitted by the 
National Graphic Arts Coordinating Committee to the President for 
approval. 

SECTION 13 — PRESIDENTIAL POWERS 

The President may from time to time cancel or modify any order, 
approval, license, rule, or regulation issued with respect to this Code. 

SECTION 14 PARTICIPATION AND MEMBERSHIP RESTRICTIONS 

Each establishment shall be entitled to make use of the NRA 
insignia and may participate in the activities of its National Code 
Authority and of this Code by assenting thereto and complying with 
the provisions thereof, and paying the share of the expense of admin- 
istration thereof assessed against it, as herein provided. The use of 
such NRA insignia by any establishment, or the participation hj any 
establishment in the activities of its National Code Authority or of 
this Code, or the continuing in effect by any establishment of its 
membership in any association which has assented to this Code, shall 
be construed as an assent by such establishment to this Code. 

The National Graphic Arts Coordinating Committee, each Na- 
tional Compliance Board, each National Code Authority, the admin- 



26 

istrative agency of each National Product Group, and any associa- 
tion directly or indirectly participating in the activities of this Code 
shall (1) impose no inequitable restrictions upon admission to mem- 
bership, and (2) submit to the Administrator for review true copies 
of its articles of association, constitution, by-laws, rules and regula- 
tions, and any amendments when made thereto. 

SECTION 1 5 MONOPOLIES 

No provision in this Code shall be interpreted or applied in such 
a manner as to promote monopolies, eliminate or oppress small enter- 
prises, or discriminate against them. 

SECTION 16 LIABILITIES 

Nothing contained in this Code shall constitute the persons par- 
ticipating in any manner whatsoever in the activities of this Code 
partners for any purpose. Nor shall any person so participating 
be liable in any manner to anyone for any act of any other person, 
agent or employee. Nor shall any person so participating, who ex- 
ercises reasonable care and diligence in the performance oi his duties 
hereunder or in the exercising of his powers or discretions, be liable 
to any one for any action or omission to act, excepting only for his 
own willfully wrong or fraudulent act. 

SECTION 1 7 RESERVATIONS 

(a) No person assenting to this Code shall be held to have thereby 
assented to any amendment thereof, nor to any particular interpre- 
tation if invalid. 

(b) Those submitting this Code recognize that pursuant to Section 
10 (b) of the National Industrial Recovery Act the President may, 
from time to time, cancel or modify any order approving this Code, 
but in submitting or assenting to this Code the establishments do 
not thereby consent to any modification thereof, except as each may 
thereto subsequently agree, nor do they thereby waive any constitu- 
tional rights, or consent to the imposition of any requirements that 
might restrict or interfere with the constitutional guarantee of the 
freedom of the press. 

SECTION 18 EFFECTIVE DATE AND EXPIRATION 

This Code shall be effective on the second Monday after its ap- 
proval by the President and continue in eifect concurrently with 
the National Industrial Recovery Act, and any extension thereof, 
unless sooner terminated by action or approval of the President. 

Article II — Employment, Wages, Hours, Etc. 

SECTION 1 — GENERAL PR0\aSI0N8 

(a) Employment. — As required by Section 7 (a) of Title I of the 
National Industrial Recovery Act, the following provisions are con- 
ditions of this Code: 



27 

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

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

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

(b) Child labor. — Establishments covered by this Code shall not 
employ any person under the age of 16 j^ears except that those be- 
tween 14 and 16 years of age may be employed (but not in mechan- 
ical or manufacturing duties) not to exceed three hours a day, such 
hours to be between 7 a.m. and 7 p.m., in such work as will not inter- 
fere with the hours of day school. 

Establishments covered by Industries A-1, A-2, A-3 aiid A-5 as 
provided in this Code, where there are newspapers or periodicals or 
advertising newspapers published and/or printed, may also employ 
persons 14 years of age or over Avho are able, without impairment of 
health, to sell newspapers or periodicals between 7 a.m. and 7 p.m. 
from October 1st to March 31st, inclusive, and between 7 a.m. and 
8 p.m. from April 1st to September 30th, inclusive, where such work 
does not interfere with the hours of day school ; ancl may also employ 
persons under 16 years of age, who are able, without impairment of 
health, to deliver newspapers or periodicals or advertising news- 
papers, where such work does not interfere with the hours of day 
school. 

(c) Piecework compensation. — The provisions in this Article II 
as to minimum wages shall apply irrespective of whether an em- 
ployee is actually compensated on a time-rate, piece-work, or other 
basis. 

(d) Eviploynient hy several estahlishments. — Establishments shall 
not knowingly employ any employee who works for two or more es- 
tablishments for a greater number of hours in any day or week than 
is specified in this Code for a single establishment. 

(e) Complement of men. — A commission of three disinterested 
engineers, selected by the American Society of Mechanical Engi- 
neers, shall be employed by the National Graphic Arts Coordinat- 
ing Committee to make a comprehensive study, and to recommend 
rules, covering complement of men required on relief printing me- 
chanical equipment, for addition to Section 21 of this Code by 
amendment as elsewhere herein authorized. 

(f) Handicapped persons. — A person whose earning capacity is 
limited because of age or physical handicap may be continued on 
lig;ht work unless, and until, otherwise ordered at a wage below the 
minimum fixed in this Code. Each establishment shall file with 
its National Code Authority a list of all such persons employed, 
including the hours worked and wages paid, and such other infor- 



28 

mation as such National Code Authority may require. Further 
employment under this clause must be authorized by such National 
Code Authority. Each National Code Authority may adopt regula- 
tions and rulings governing the application of this clause (f). 

SECTION 2 NONMECHANICAL EMPLOYEES 

(a) N onniechanical errvployees — Minimum, wages. — Establishments 
covered by this Code shall not pay any nonmechanical employee 
less than $15.00 per week in any city over 500,000 population or in 
the immediate trade area of such city; nor less than $14.00 per 
■week in any city between 250,000 and 500,000 population, or in the 
immediate trade area of such city; nor less than $13.00 per week 
in any city between 50,000 and 250,000 population, or in the imme- 
diate trade area of such city; nor less than $12.00 per week in any 
city between 25,000 and 50,000 population, or in the immediate trade 
area of such city. In places of less than 25,000 population (1930 
Census), wages in effect July 1, 1933, shall be increased by not 
less than 20 per cent, provided, that this shall not require wages 
in excess of $11.00 per week. 

Excepting (1) that persons (other than apprentices) learning the 
business during the first 12 months of service in the Industry, office 
boys or girls, and/or errand boys or girls, comprising in all not 
more than one for each five employees, or fraction thereof, shall 
receive not less than 20 cents per hour; and (2) that no establish- 
ment in a city over 50,000 population shall pay any nonmechanical 
employee, other than those excepted, less than the amount set forth 
in the foregoing paragraph, unless the wage for the same class of 
work in the same locality on July 15, 1929, was less than the amount 
set forth, in which case it shall pay not less than the wage for the 
same class of work in such locality on Julv 15, 1929, with a minimum 
of $12.00 per week. 

Wages to such nonmechanical employees for part-time shall be 
computed and paid at proportional rates for the time actually 
employed. 

Nonmechanical employees shall include copy-holders and em- 
plo3'ees checking directory proofs which are independently and 
completely read by qualified proofreaders. 

SECTION 21 — MECHANICAL EMPLOYEES 

ENGAGED IN THE PROCKSSES OF RELIEF PRINTING 

The provisions of this Section shall govern all establishments en- 
gaged in any of the processes or partial processes of relief printing 
and shall be applicable to all the mechanical employees of such 
establishments engaged in carrying on any of the operations of such 
processes. 

(a) Unfikilled niechamcal ejiiploycr.s — ivinimvm uyrr/rs. — Estab- 
lishments covered by this Section shall not pay any unskilled me- 
chanical employee less than 40 cents per hour, unless, on July 15, 
1929, the houi-ly rate for the same class of work was less than 40 
cents per hour, in which latter case they shall be i)ai(l not less than 
such hourly rate on July 15, 1929. in the same establishment (or in 



29 

the same locality in the case of a new establishment) and in no event 
less than 30 cents per hour. 

(b) Skilled mechanical employees — Minimum wages. — Paragraph 
1. Minimum hourly compensation for various classes of skilled 
workers and/or artisans shall be established for classes of establish- 
ments coming under this Section, as follows : 

Class 1. This class shall consist of all library binders where- 
ever situated, and all other establishments in places of less than 
25,000 population (1930 Census) in which the total job and 
contract printing output (except circulation and advertising 
receipts of newspapers and periodicals) for the preceding calen- 
dar year was less than $50,000. 

■ Class 2. This class includes all establishments (other than 
library binders) coming within this Section in cities (or similar 
localities) having more than 25,000 population (1930 Census) 
and each such establishment, in a place of smaller population, 
which had a total job and contract printing output (except cir- 
culation and advertising receipts of newspapers and periodicals) 
for the preceding calendar vear in excess of $50,000. 
The minimum hourly wages for Class 1 are set forth in Column 
1 ; and the minimum hourly wages for Class 2 are set forth in Col- 
umn 2 of the following schedule : 

SCHEDULE 



Column 
1 



Column 
2 



Compositors 

Typesetting Machine Operators 

Proofreaders 

Job Pressmen, including pressmen employed on special ticket and coupon presses.. 

Job Feeders 

Cylinder and Sheet-fed Rotary Pressmen. 

Cylinder Feeders 

AVeb Rotary Pressmen 

Web Rotary First Assistant Pressmen 

Flat Casters 

Paper Cutting and Binding Machine Operators (except as classified for Edition 
Binding) 

Pamphlet Bindin? Machine Assistants, skilled 

Pamphlet and Edition Bindery Girls, skilled, also Bunchers and Feeders 

Ruling Machine Operators, skilled 

Ruling Machine Operating Assistants 

Ruling Machine Feeders 

Edition Binding (Machine Operators), including Case Makers, Stampers, Cutters, 
Rounders and Backers, Lining Machine, Casing-in Machine, Folding-Machine, 
and Gathering Machino 

Edition Binding— Assistant Machine Operators 

Edition Binding— Hand Workers, skilled (Men) 

Library Binders (Men), skilled 

Library Binders (Women), skilled .1. 

Electrotypers— 

Molders and Finishers.. 

Branchmen 

Helpers 

Btereotypers 

Stereotypers' Helpers '.'".'.'. 

Photo-Engravers... 



$0.60 
.60 
.45 
.48 
.34 
.60 
.35 
.67 
.35 
.34 



.36 
.30 
.60 
.35 
.30 



.60 
.48 
.60 
.45 
.32 

.60 
.48 
.40 
.60 
.40 
1.00 



$0.82 
.82 



.77 
.60 



.82 
.66 
.50 
.82 
.50 
1.00 



Exception 1 : An establishment whose gross business (not includ- 
ing circulation and advertising receipts of newspapers and periodi- 
cals) is under $100,000 per year, located in a place of less than 
25,000 population, which might otherwise come under Class 2, may 
obtain a terminable permit from its National Code Authority to 



30 

come under Class 1 if and so long as that part of such gross business 
which originates in places of more than 25,000 population and/or 
with firms whose headquarters are in such places (hereinafter re- 
ferred to as foreign business) was less than $6,000 for the preceding 
quarter of the calendar year — under the following conditions : 

(1) A terminable permit shall be issued upon the filing of a sworn 
application stating that the applicant's foreign business for the last 
preceding quarter of the calendar year was less than $6,000 (listing 
the items comprising the same). 

(2) Such permit shall continue for successive quarters upon its 
filing reports with corresponding information within 15 days after 
the expiration of each quarter. 

(3) A permit shall expire 15 days after the expiration of a quarter 
upon the permittee's failure to file a report thereon, or upon such 
report showing over $6,000 of foreign business in the preceding 
quarter of the calendar year. 

(4) The National Code Authority may revoke a permit and/or 
refuse further permits to any establishment which it finds to have 
made a materially false statement hereunder. 

Exception 2 : In establishments located in places of less than 
10,000 population (1930 Census) which had gross receipts of $12,000 
or less in the preceding calendar year from job and contract printing 
(not including circulation and advertising receipts of newspapers 
and periodicals), the requirements of Paragraphs 1 and 2 shall not 
apply; but mechanical employees shall receive not less than eighty 
(80) per cent of the minnna set forth in Column 1 of the fore- 
going schedule; provided, however, that when an employee in such 
an establishment performs tasks coming within several of the classi- 
fications set forth in Paragraph 1, his minimum hourly rate of com- 
pensation shall be determined by averaging the minimum rates for 
Buch various classifications. 

Paragraph 2. Each establishment, with the exception of those — 

(1) Which are operating under wage agreements arrived at 
by collective bargaining ; and 

(2) Those which are paying not less than the wage rates 
which they were paying on July 15, 1929, 

shall make increases in its average hourly compensation for all 
classes of skilled labor, within 30 days after this Code becomes 
eflfective, on the following basis : 

Including increases made under Paragraph 1 of this Section 
each plant shall increase the hourly rates to a point where (in- 
cluding increases made since July 1, 1933) they are 10 per cent 
higher than the hourly rates in effect on July 1, 1933, with this 
limitation, that they need not increase rates above those paid on 
July 15, 1929, in the same plant, or above those paid in similar 
plants in the same locality coming within the abov6 clauses (1) 
or (2). 
Paragraph 3. Within 30 days after this Code becomes effective 
any rate increases under Paragraphs 1 and 2 must be further aug- 
mented, if necessary, to bring the average hourly compensation paid 
in each establishment up to 90 i)er cent of the hourly rates prevail- 
ing on July 1, 1933, in the same locality, for those base classes of 
skilled labor named in the schedule set forth in Paragraph 1 hereof. 



31 

Prevailing rates shall be the average of the hourly rates paid to 
the employees constituting that 50 per cent of each class of skilled 
employees coming under this Code in that locality which was re- 
ceiving the higher hourly wage rates on July 1, 1933. For example, 
if in a locality of Class 1, a total of thirty compositors were em- 
ploj^ed, ten of whom were receiving 82 cents per hour and twenty 
of whom were receiving 67 cents per hour, the prevailing rate would 
be the weighted average of 82 cents for ten compositors and of 67 
cents for five compositors (making together 50 per cent of the total 
number) or 77 cents, and 90 per cent thereof would be 69.3 cents. 

It is provided, however, that in a locality where one establishment 
employs 50 per cent or more of the total skilled employees of a 
particular class in that locality, and the rate paid by said estab- 
lishment is higher than the average rate paid by the other estab- 
lishments in that localit3% the employees of that class in said es- 
tablishment so employing 50 per cent or more of that class shall be 
omitted in computing the average hourl}^ wage rates for that locality. 

[Note. — For the purposes of Paragraphs 2 and 3 "Average ", in case varying 
rates are paid for the same classification of labor, means average ascertained 
by dividing the total of hourly compensations by the total number of employees 
whose wage rates are being averaged.] 

Paragraph 4. In applying the foregoing paragraphs, differentials 
in wage rates from basic rates for varying tasks within the same 
class shall be maintained as in effect December 1, 1933, in the 
individual establishments. 

Paragraph 5. In no instance shall the foregoing be applied in a 
manner to reduce the present hourly rate paid to any class of em- 
ployees, or to establish minimum wage rates in establishments where 
collective bargaining is not practiced higher than the minimum for 
the same class of employees in establishments in that locality where 
wage rates were arrived at through collective bargaining. 

Paragraph 6. It should be specifically understood that the fore- 
going provisions are intended to establish only minimum and not 
maximum wage requirements. 

(c) General %cage 'provisions. — In connection with the foregoing, 
the following rules shall apply : 

(1) No establishment shall pay to any employee coming 
within any of the classifications enumerated in the schedule in 
(b) Paragraph 1 an hourly rate lower than the minimum estab- 
lished for unskilled mechanical employees in that locality by this 
Section. 

(2) Except as provided in Exception 2 of Paragraph 1 an 
employee performing duties coming within more than one of the 
classifications in the foregoing schedule shall be compensated on 
the basis of the rates applying to such several classifications for 
the time employed. 

(3) The foregoing requirements as to mechanical wages do 
not applj^ to apprentices, who are referred to in (e) of this 
Section. 

(4) In establishments where newspapers are printed the pro- 
visions of clause (b) and the preceding subclauses of (c) of 
Section 21 need not apply for skilled mechanics while engaged 

29220° 296-117 34 5 



32 

in the production of newspapers; provided, that in such estab- 
lishments the minimum wage rate for such mechanics shall be 40 
cents per hour, and provided further, that the differentials exist- 
ing December 1, 1933, in the hourlj^ wage rates of such employees 
shall be maintained, 
(d) Hours of Jahor — 1. Standard worK'huj hours. — Standard work- 
ing hours shall be 40 hours per week for all mechanical employees, 
including proprietors, supervisors, foremen and/or others for the 
time actually engaged in mechanical work. The work week in the 
case of each individual employee shall be divided into not more than 
six shifts, no one of which will be more than 8 hours unless overtime 
be paid. When necessary, overtime shall be permitted; provided (1) 
that a mechanical employee shall receive not less than the local over- 
time rate (one and one-third times or one and one-half times his 
hourly wage) for all work in excess of 8 hours within any 24-hour 
period; and (2) that no more than 520 hours shall be worked by 
any mechanical employee in any 13 weeks period. 

It is not intended that any of the foregoing provisions shall limit 
the number of days per week or shifts per day an establishment may 
operate.® 

2. Maximum hour exceptions. — (1) The maximum hours fixed by 
this Section shall not apply to professional persons employed in their 
profession, technical employees, or employees on emergency main- 
tenance, or repair work, nor to employees in cases where the restric- 
tion of hours of highl}^ skilled artistic or mechanical workers on 
continuous processes would unavoidably reduce production; but in 
the case of such a highly skilled artistic or mechanical worker the 
local overtime rate (one and one-third times or one and one-half 
times his hourly wage) shall be paid for the hours worked in excess 
of the maximum. 

(2) A tolerance of 10 per cent, without overtime pay, over the maxi- 
mum hours herein prescribed, shall be allowed in the cases of wash- 
up crews, shipping crews, material handlers, elevator operators, and 
other mechanical employees whose duties have no direct connection 
with Graphic Arts processes, and a tolerance of 20 per cent without 
overtime pay shall be allowed in the cases of outside delivery men, 
porters, engineers, firemen, janitors and watchmen. The maximum 
of six shifts per week shall not apply to engineers, firemen, janitors 
or watchmen. 

A tolerence of 10 per cent, without overtime pay, shall also be al- 
lowed establishments engaged in the service of library binding, such 
tolerance to be averaged over six months' periods, provided no em- 
jjloyee shall be allowed to work over 48 hours in any one week. 

(3) In establishments having periods of regular variations or sea- 
sonal swells arising from the publication of newspapers (other than 
dailies) or the j^roduction of special editions, employees may work 
more than eight lioui-s in any one day without overtime pay. 

(4) In establishments wliere a daily newspaper is printed, in 
cities or towns where there are no available surplus mechanics com- 
petent for the tasks to be performed, employers may work their me- 
chanical employees more than eight hours per day during periods of 
regular variation, seasonal swell, and/or during the production of 

• Sef par. 2 of Executive order approving this Code. 



33 

special editions, provided that time and one-third shall be paid for 
all work in excess of eight hours per day. 

(5) In establishments in Industry A-5 of this Code where news- 
papers are printed, the maximum unit of hours to constitute a day's 
or night's work for mechanical employees engaged in the production 
of newspapers shall be 8 continuous hours, exclusive of lunch time. 

The foregoing maximum hours of work shall not be construed as 
a minimum either for a day or a week, and if at an}^ time in any 
locality newspaper mechanics of a given trade, through their chosen 
representatives, express by written request to the employer or 
employers a desire to share available work with bona fide resident 
unemployed competent newspaper mechanics in their particular 
trade or craft, the number of hours of work may be adjusted by 
mutual agreement. 

If local agreement proves impossible within 15 days^ the question 
may be appealed hy either party to a local Fact Finding Board made 
up of two representatives of the employer or employers and two 
representatives of the emplo3'ees. 

The local Board as thus formed shall endeavor to agree upon tlie 
facts with regard to the number of resident unemployed competent 
newspaper mechanics in the locality for the purpose of reducing the 
number of such unemployed newspaper mechanics so far as is pos- 
sible without undue hardship to either the employer or employers or 
his or their employees. 

If a majority agreement cannot be arrived at, the four members 
shall choose a fifth and impartial member of the Board who shall 
act as chairman. 

The Board shall proceed diligently to complete its findings of fact 
and make its recommendations. 

Should either the employer or employers or his or their employees 
disagree with the findings and recommendations of the local Fact 
Finding Board, appeal may be made to the National Relief Printing 
Labor Board provided for in this Code, which, after notice and 
opportunity for the parties to be heard, shall make a finding which 
shall be binding upon all parties of interest. 

These provisions as to sharing of work shall not apply to any 
newspaper having ten or less journeymen mechanical department 
employees. 

If in any locality there are not available competent journeymen 
newspaper mechanics to permit the operation of any newspaper in 
such locality on a 40 hour week, then the work week may be ex- 
tended to not more than six times the maximum unit of hours here- 
inbefore set forth as constituting a normal day's or night's work, 
without overtime; provided that in any locality where less than 8 
hours normally constitutes a day's or night's work, then the work 
week may not be extended beyond six times that unit of hours 
unless overtime be paid. 

An employer may divide an employee's work week into as many 
as six shifts, each of such length, not exceeding 8 hours, as the 
employer may determine, and shall have the right to designate the 
shifts, schedule of hours, and starting time of each employee. Over- 
time shall be worked when necessary. 



34 

(6) In establishments in Industry A-2 of this Code where news- 
papers are printed, the maximum unit of hours to constitute a day's 
or nio-ht's work for mechanical employees engaged in the produc- 
tion of newspapers shall be 8 continuous hours, exclusive of lunch 
time. 

The foregoing maximum hours of work shall not be construed as 
a minimum either for a day or a week, and if at any time in any 
establishment a majority of the newspaper mechanics of a given 
trade express by written request to the employer a desire to share 
available work with bona fide resident unemployed competent news- 
paper mechanics in their particular trade or craft, the number of 
hours of work may be adjusted by mutual agreement. 

If local agreement proves impossible within 15 days, the question 
may be appealed by either party to a local Fact Finding Board made 
up of two representatives of the employer and two representatives 
of the employees. 

The local Board as thus formed shall endeavor to agree upon the 
facts with regard to the number of resident unemployed competent 
newspaper mechanics in the locality for the purpose of reducing the 
number of such unemployed newspaper mechanics so far as is pos- 
sible without undue hardship to either the employer or his employees. 

If a majority agreement cannot be arrived at, the four members 
shall choose a fifth and impartial member of the Board who shall 
act as chairman. 

The Board shall proceed diligently to complete its findings of fact 
and make its recommendations. 

Should either the employer or his employees disagree with the 
findings an4 recommendations of the local Fact Finding Board, 
appeal may be made to the National Relief Printing Labor Board 
provided for in this Code, which, after notice and opportunity for 
the parties to be heard, shall make a finding which shall be binding 
upon all parties of interest. 

These provisions as to sharing of work shall not apply to any 
newspper having ten or less journeymen mechanical department 
employees. 

If in any locality there are not available competent journeymen 
newspaper mechanics to permit the operation of any newspaper in 
such locality on a 40 hour week, then the work week may be extended 
to not more than six times the maximum unit of hours hereinbefore 
set forth as constituting a normal day's or night's work, without 
overtime; provided that in any locality where less than 8 hours 
normal!}' constitutes a day's or night's work, then the work week 
may not be extended beyond six times that unit of hours unless 
overtime be paid. 

An employer may divide an employee's work week into as many 
as six shifts, each of such length, not exceeding 8 hours, as the em- 
ployer may determine, and shall have the right to designate the 
shifts, scliedule of hours, and starting time of each employee. Over- 
time shall be worked when necessary.^ 

(e) Apprevt'tces. — The ratio for apprentices under Section 21 of 
this Code shall be not more than one ai)i)rentice to five or a major 



* See par. 2 of Executive order approviiiK iLiis Cotli;. 



85 

fraction thereof of Journeymen of the respective skilled classifica- 
tions. However, any plant may have at least one apprentice in each 
or any classification of skilled labor in which a journeyman is em- 
ployed. The minimum base rates of pay for an apprentice shall 
represent the percentages shown below of the minimum wage of a 
journeyman of the skilled classification under which such apprentice- 
ship is being served: 

Per cent Per cent 

First Year 30 Fourth Year 60 

Second Year 40 Fifth aud Sixth Years 75 

Third Year 50 

Boys under eighteen, not high-school graduates, may be started as 
apprentices and serve up to one year at 50 per cent of the wage of 
unskilled labor. 

The maximum terms of apprenticeships shall be : For compositors, 
five years; for pressmen, four years if (1) over twenty j^ears of age 
at the start, or (2) advanced from feeder or rotary assistanceship, 
otherwise six years. 

These apprenticeship rules shall not prevent the continuation of 
the status of persons already at work under apprenticeship arrange- 
ments made prior to July 1, 1933. 

Upon the completion of the term of apprenticeship, journeymen's 
minimum rates of pay shall apply. 

SECTIOX 2 2 MECHANICAL EMPLOYEES (continued) 

A. Engaged ix the Peocesses of LiTHOGRArHic Printing 

The provisions of this Sub-Section 22-A, shall govern all estab- 
lishments engaged in any of the processes or partial processes of lith- 
ographic printing and shall be applicable to all the mechanical em- 
ployees of such establishments engaged in carrying on any of the 
operations of such processes; excepting those establishments and the 
employees of those establishments, included in the Trade Mounting 
and Finishing Industry. 

(a) Unskilled mechanical employees — Minimum wages. — Estab- 
lishments covered b}^ this Sub-Section 22-A shall not pay any un- 
skilled mechanical employee less than 40 cents per hour, unless, on 
July 15, 1929, the hourly rate for the same class of Avork was less 
than 40 cents per hour, in which latter case establishments shall not 
pay less than such hourly rate on July 15, 1929, and in no event less 
than 30 cents per hour. 

(b) Skilled mechanical eviployees — Minimum wages. — (1) Each 
establishment which operated on July 1, 1933, on a basic work week of 
40 hours or more shall put into effect, as of the effective date of this 
Code, hourW rates for all its skilled mechanical employees at least 
10% higher than were the hourly rates in effect on July 1, 1933; pro- 
vided, that no such hourly rate shall be less than the minimum hourly 
rate established by this Sub-Section 22-A for unskilled mechanical 
employees, and provided further, that no establishment shall be re- 
quired under this paragraph to pay any employee a weekly wage 
for 40 hours greater than the weekly wage paid for the same class 
of work for the basic work week in operation in such establishment 
on July 1, 1929. 



36 

(2) If, after the increase in hourly rate provided for in the pre- 
ceding paragraph is effective, the hourly rate paid by an establish- 
ment to any skilled mechanical employee is less than 90% of the pre- 
vailing hourly rate on July 1, 1933, the hourly rate of such employee 
within 30 days from the effective date of this Code shall be increased 
to not less than 90% of such prevailing hourly rate. For the pur- 
pose of this paragraph, " prevailing hourly rate " is defined to be the 
average rate paid that class of skilled mechanical employees by a 
group of other establishments doing a comparable class of work 
and/or of comparable size in that locality or competitive area. 

(c) Hours of labor — (i) Stcmdard loorking hours. — Standard 
working hours for all mechanical employees, including proprietors, 
supervisors, foremen and/or others for the time actually engaged 
in mechanical work shall be 40 hours per week, and not over 8 hours 
per day from Monday to Friday inclusive and not over 4 hours on 
Saturday mornings before 1 p.m. 

Overtime shall be permitted when necessar3\ provided, (1) that in 
any establishment for each of the first 3 hours worked in excess of 
the standard work day for such establishment on any day from 
Monday to Friday inclusive a mechanical employee shall receive 
one and one-half times his hourly wage, (2) that for the fourth 
and each additional hour worked in excess of such standard work 
day from Monday to Friday inclusive a mechanical employee shall 
receive two times his hourly wage, (3) that for each hour worked 
on Saturdays in excess of 4 hours worked on Saturday mornings 
and for each hour worked on Sundays or legal holidays a mechanical 
employee shall receive two times his hourly wage. 

If the number of hours worked by a mechanical employee from 
ISIonday to Friday inclusive in any week without overtime is 36 or 
less, he shall be permitted to work for 4 hours on Saturday morning 
at his regular hourly wage ; if the number of hours so worked from 
Monday to Friday is more than 36, he shall be permitted to work 
on Saturday morning at his regular hourly wage for such number of 
hours as will bring the total hours worked in the week without over- 
time to 40 hours. For those hours worked on Saturday morning by a 
mechanical employee by which the total hours worked by him in 
that week without overtime exceeds 40 hours he shall receive one 
and one-half times his regular hourly wage. 

No more than 520 hours including overtime shall be worked by 
any meclianical employee in any 13 weeks period. 

None of the foregoing provisions shall limit the number of days 
per week or shifts per clay an establishment may operate.^ 

(2) Maximum hours exceptions. — The maximum hours fixed by 
this Sub-Section 22-A shall not apply to professional persons em- 
ployed in their ]jrofession, technical employees, or employees on 
emergency maiutenai)ce, or rej^aii- work. 

A tolerance of ten i)er cent, without overtime pay, over the maxi- 
nunn hours herein prescribed, shall be allowed in the cases of ship- 
ping crews, material handlers, elevator operators, and other mechani- 
cal employees whose duties have no direct connection with Graphic 
Arts processes, and a toleiance of twenty per cent, without overtime 

• Sf<? par. 2 of Kxpcutive order upprovinfc this Code. 



37 

pay, shall be allowed in the cases of outside delivery men, porters, 
engineers, firemen, janitors and watchmen. 

A tolerance of ten per cent, over the maximum hours herein pre- 
scribed, shall be allowed in the case of wash-up crews, provided that 
for any such work done by employees in excess of the standard work 
day, overtime at the rates hereinabove specified shall be paid in those 
establishments where it has been customary to pay overtime for such 
work.^ 

(d) Apprentices. — (1) The National Lithographic Printing La- 
bor Board, hereinafter provided for, promptly after its organization 
shall appoint a committee composed of an equal number of repre- 
sentatives of employers and employees to study carefully the ap- 
prenticeship situation and to make recommendations thereon to the 
National Lithographic Code Authority. In making its study the 
committee shall not limit itself to existing data and information but 
shall secure through the National Code Authority from establish- 
ments within the Industry such additional facts as it may deem 
necessary. Its recommendations shall include apprenticeship ratios 
and methods of applying them equitably for the Industry. Upon 
receipt of the recommendations of the committee, the National Lith- 
ographic Printing Code Authority shall adopt rules and regulations 
to govern all apprentices within the Industry, such rules and regu- 
lations being subject to the review of the Administrator. 

(2) Until the rules and regulations governing apprentices are 
adopted as above provided, the ratio of apprentices in the press 
department shall be not more than one apprentice to four journey- 
men ; the ratio in each of the other departments shall be not more 
than one apprentice to five journeymen employed in each such de- 
partment: and in smaller establishments in which the above ratios 
are not applicable not more than one apprentice shall be permitted 
for each five journeymen emploj^ed in all departments. Existing 
wage arrangements for apprentices shall continue until or unless 
changed as above provided. 

B. Engaged ix the Trade Mounting and Finishing Industry 

The provisions of this Sub-Section 22-B shall govern all establish- 
ments included in the Trade Mounting and Finishing Industry and 
shall be applicable to all the mechanical employees of such estab- 
lishments. 

(a) Mechanical employees — Minimum wages. — (1) Establish- 
ments covered by tliis Sub-Section 22-B shall not pay any mechanical 
employee less than 40 cents per hour for male employees and 35 
cents per hour for female employees; provided, where female em- 
ployees do substantially the same work or perform substantially the 
same duties as male employees, they shall be paid the same rate of 
pay as male employees are paid for doing such work or performing 
such duties. 

(2) As soon as practicable, a job classification for the Industry 
shall be set up by the National Trade Mounting and Finishing Code 
Authority and minimum rates for each job classification shall be 
fixed. Such job classification, when approved by the Administrator, 
shall be binding on each establishment within the Industry. 

• See par. 2 of Executive order approving this Code. 



38 

(b) Bours of Labor — (1) Standard working hours. — The stand- 
ard working hours for all mechanical employees, including propri- 
etors, supervisors, foremen and/or others, for the time actually en- 
gaged in mechanical work, shall be forty (40) hours per week and 
eight (8) hours per day on any day from Monday to Saturday, 
inclusive; provided, however, that if the Code Authority having 
jurisdiction so decides, the standard work week in any defined area 
shall be eight (8) hours per day from Monday to Friday, inclusive. 
In any such case if one of the days from Monday to Friday be a 
legal holiday, or a holiday recognized by the Code Authority having 
jurisdiction,"^ in such week Saturday may be substituted as part of 
the standard work week. 

When necessary, overtime shall be permitted, provided: 

(a) That a mechanical employee shall receive not less than 
one and one-half times his hourly wage for all work in excess 
of 8 hours in any standard work day, and for all work in excess 
of 40 hours within any week, and for all work on other than a 
standard work day, 

(b) That no more than 48 hours, including overtime, shall be 
worked by any mechanical employee in any one week^ and, 

(c) That no more than 520 hours, including overtnne, shall 
be worked by any mechanical employee in any 13 week period. 

(2) Maximum hours exceptions. — The maximum hours fixed by 
this Sub-Section 22-B shall not apply to professional persons em- 
ployed in their profession, technical employees, employees on emer- 
gency maintenance, or repair work, nor to employees in cases where 
the restriction of hours of highly skilled artistic or mechanical work- 
ers on continuous processes would unavoidably reduce production; 
but in the case of such highly skilled artistic or mechanical workers, 
at least time and a half shall be paid for the hours worked in excess 
of the maximum. 

A tolerance of 10%, without overtime pay, over the maximum 
hours herein prescribed, shall be allowed in the cases of shipping 
crews, elevator operators and other mechanical employees whose 
duties have no direct connection with Graphic Arts processes, and 
a tolerance of 20%, without overtime pay, shall be allowed in the 
cases of outside delivery men, porters, engineers, firemen, janitors 
and watchmen. The maximum of five shifts per week shall not 
apply to engineers, firemen, janitors or watchmen.^ 

(c) Prohibition of home work. — All labor shall be performed in 
the establishment's plant and no home work shall be allowed. 

SECTION 2 3 

MECHANICAL EMPLOYEES (contiliued) 

A. Engaged in the Process of Ghavurb Intaglio Printing 

Tlie pi-ovisions of this Sub-Section 23A shall govern all estabhsh- 
ments engaged in any of the processes or partial processes of gravure 
printing and shall be applicable to all the mechanical employees of 
such establishments engaged in carrying on any of the operations of 
such processes. 



^ See par. 2 of Executive order approving this Code. 



39 

(a) Unskilled mechanical employees — minimum, wages. — Estab- 
lishments covered by this Sub-Section 23A shall not pay any un- 
skilled mechanical employee less than 40 cents per hour, unless, on 
July 15, 1929, the hourly rate for the same class of work was less 
than 40 cents per hour, in which latter case they shall be paid not 
less than such hourly rate on July 15, 1929, in the same establish- 
ment (or in the same locality in the case of a new establishment) 
and in no event less than 30 cents per hour. 

(6) Skilled mechanical employees — minimum wages. — Para- 
graph 1. Minimum hourly compensation for various classes of 
skilled workers and/or artisans shall be established for establish- 
ments coming under this Sub-Section 23A, as follows: 

Rotogravure Pressmen $0. 91 

Rotogravure Assistants (or brakemen) .55 

Photo-Engravers 1. 00 

Paragraph 2. Each establishment, with the exception of those — 

(1) Which are operating under wage agreements arrived at 
by collective bargaining; and 

(2) Those which are paying not less than the wage rates which 
they were paying on July 15, 1929, 

shall make increases in its average hourly compensation for all classes 
of skilled labor, within 30 days after this Code becomes effective, on 
the following basis : 

Including increases made under Paragraph 1 of this Sub-Section 
23A each plant shall increase the hourly rates to a point where (in- 
cluding increases made since July 1, 1922) they are 10 per cent higher 
than the hourly rates in effect on July 1, 1933, with this limitation, 
that they need not increase rates above those paid on July 15, 1929, 
in the same plant, or above those paid in similar plants in the same 
locality coming within the above clauses (1) or (2). 

Paragraph 3. Within 30 days after this Code becomes effective any 
rate increases under Paragraphs 1 and 2 must be further augmented, 
if necessary, to bring the average hourly compensation paid in each 
establishment up to 90 per cent of the hourly rates prevailing on 
July 1, 1933, in the same locality, for those base classes of skilled 
labor named in the schedule set forth in Paragraph 1 hereof. 

Prevailing rates shall be the average of the hourly rates paid to 
the employees constituting that 50 per cent of each class of skilled 
employees coming under this Code in that locality which was re- 
ceiving the higher hourly wage rates on July 1, 1933. For example, 
if in a locality a total of thirty rotogravure pressmen were employed, 
ten of whom were receiving 96 cents per hour and twenty of whom 
were receiving 90 cents per hour, the prevailing rate would be the 
weighted average of 96 cents for ten pressmen and of 90 cents for 
five pressmen (making together 50 per cent of the total number) or 
94 cents, and 90 per cent thereof would be 84.6 cents. 

[Note. — For the purposes of Paragraphs 2 and 3 "Average," in case varying 
rates are paid for the same classification of labor, means average ascertained 
by dividing the total of hourly compensations by the total number of employees 
whose wage rates are being averaged.] 

Paragraph 4. In applying the foregoing paragraphs, differentials 
in wage rates from basic rates for varving tasks within the same class 



40 

shall be maintained as in effect December 1, 1933, in the individual 
establishments. 

Paragraph 5. In no instance shall the foregoing be applied in a 
manner to reduce the present hourly rate paid to any class of em- 
ployees, or to establish minimum wage rates in establishments where 
collective bargaining is not practiced higher than the minimum 
for the same class of employees in establishments in that locality 
where wage rates were arrived at through collective bargaining. 

Paragraph G. It should be specifically understood that the fore- 
going provisions are intended to establish only minimum and not 
maximum wage requirements. 

(c) General wage provisions. — In connection with the foregoing, 
the following rules shall apply : 

(1) No establishment shall pay to any employee coming 
within any of the classifications enumerated in the, schedule 
in (b) Paragraph 1 an hourly rate lower than the minimum 
established for unskilled mechanical emploj^ees in that locality 
by this Sub-Section 23A. 

(2) An employee performing duties coming within more than 
one of the classifications in the foregoing schedule shall be com- 
pensated on the basis of the rates applying to such several classi- 
fications for the time employed. 

(3) The foregoing requirements as to mechanical wages do 
not apply to apprentices, who are referred to in (e) of this 
Sub-Section 23A. 

(d) Hours of labor — 1. Standard working hours. — Standard 
working hours shall be 40 hours per week for all mechanical em- 
ployees, including proprietors, supervisors, foremen and/or others 
for the time actually engaged in mechanical work. The work week 
in the case of each individual emploj^ee shall be divided into not 
more than six shifts, no one of which will be more than 8 hours 
unless overtime be paid. ^Yhen necessary, overtime shall be per- 
mitted; provided (1) that a mechanical employee shall receive not 
less than the local overtime rate (one and one-third times or one 
and one-half times his hourly wage) for all work in excess of 8 hourg 
within any 24-hour period; and (2) that no more than 520 hours 
sliall be worked by any mechanical employee in any 13 weeks period. 

It is not intended that any of the foregoing provisions shall limit 
the number of days per week or shifts per day an establishment 
m.ay operate. 

2. Maximum hour exceptions. — (1) The maximum hours fixed by 
this Sub-Section 23A shall not apply to professional persons em- 
ployed in their profession, technical employees, or employees on 
emergency maintenance, or repair work, nor to employees in cases 
where the restriction of hours of highly skilled artistic or mechanical 
workers on continuous processes would unavoidably reduce produc- 
tion ; but in the case of such a highly skilled artistic or mechanical 
worker the local overtime rate (one and one-tliird times or one and 
one-lialf times his hourly wage) shall bo paid for the hours worked 
in excess of the maximum. 

(2) A tolerance of 10 per cent, without overtime pay, over the 
maximum hours herein prescribed, shall be allowed in the cases of 
wash-up crews, shipping crews, material handlers, elevator opera- 



Per cent 
Fourth Tear 60 

Fifth and Sixth Years 75 



41 

tors, and other mechanical employees whose duties have no direct 
connection with Graphic Arts processes, and a tolerance of 20 per 
cent without overtime pay shall be allowed in the cases of outside 
deliver}' men, porters, engineers, firemen, janitors and watchmen. 
The maximum of six shifts per week shall not apply to engineers, 
firemen, janitors or watchmen. 

(3) in establishments having periods of regular variations or sea- 
sonal swells arising from the publication of newspapers (or of parts 
thereof) or the production of special editions, employees may work 
more than eight hours in any one day without overtime pay.^ 

(e) Apprentices. — The ratio for apprentices under Sub-Section 
23A of this Code shall be not more than one apprentice to three or a 
major fraction thereof of journeymen of the respective skilled classi- 
fications. However, any plant may have at least one apprentice in 
each or any classification of skilled labor in which a journeyman is 
employed. The minimum base rates of pay for an apprentice shall 
represent the percentages shown below of the minimum wage of a 
journeyman of the skilled classification under which such apprentice- 
ship is being served : 

Per cent 
First Tear 30 

Second Year 40 

Third Tear 50 

The maximum terms of apprenticeship shall be : For rotogi'avure 
pressmen, four 3'ears if (1) over twentj^ years of age at the start, or 
(2) advanced from rotary assistanceship, otherwise six years. 

These apprenticeship rules shall not prevent the continuation of the 
status of persons already at work under apprenticeship arrangements 
made prior to Jiily 1, 1933. 

Upon the completion of the term of apprenticeship, journeymen's 
minnnum rates of pay shall apply. 

SECTION 2 4 LABOR BOARDS® 

Paragraph 1. Organization. — A. National Board : There shall be 
established three National Gra])hic Arts Labor Boards, as follows : 

(1) National Lithographic Printing Labor Board: This shall con- 
sist of four members appointed by the Administrator of the National 
Recovery Administration upon nomination by the Labor Advisory 
Board of said Administration, four members appointed by the Na- 
tional Lithographic Printing Compliance Board (each of said groups 
of four members to be equally and truly representative respectively 
of the two leading types of employer-employee relationships), and 
of an impartial Chairman selected by the members of the Board so 
appointed, or, in case of their failure to agree, by the President, 
upon nomination by the Administrator of the National Recovery 
Administration. 

This Board shall have jurisdiction over the following Industries; 
B-1. Lithographic Printing Industry. 
D-2. Trade Lithographic Plate Making Industry. 
D-4. Trade Mounting and Finishing Industry. 



* See par. 2 of EsRCutive order npproving: this Code. 

* See par. 1 of Executive oi'der approving this Code. 



42 

(2) National Intaglio Printing Labor Board: This shall consist of 
two groups of four members each, appointed on the same principle 
as provided in A ( 1 ) , excepting that the appointment of the second 
group of four shall be by the National Intaglio Printing Compliance 
Board. The Chairman shall be appointed as provided in A (1). 

This Board shall have jurisdiction over the following Industries : 
C-1. Gravure Printing Industry. 

C-2. Steel and Copperplate Engraving and Printing Industry. 
C-3. Securities Engraving and Printing Industry. 
C-4. Bank Note Engraving and Printing Industry. 

(3) National Relief Printing Labor Board : This shall consist of 
two groups of six members each, appointed on the same principle as 
provided in A (1), excepting that the second group of six shall be 
appointed by the National Relief Printing Compliance Board with 
the concurrence of the National Code Authorities of the Service 
Industries coming within the jurisdiction of said National Relief 
Printing Labor Board. The Chairman shall be appointed as pro- 
vided in A (1). 

This Board shall have jurisdiction over all Industries coming 
within this Code, with the exception of those above specified in A 
(1) and A (2) of this Section. 

[Note. — In case any National Compliance Board shall fail to appoint mem- 
bers for a National Labor Board within 30 days after written notice from the 
National Graphic Arts Coordinating Committee that such appointment is in 
order, the members of said committee representing the Industries concerned 
may by majority vote appoint such members for such National Labor Board.] 

B. Regional Labor Boards and Temporary Labor Committees: 
Regional Labor Boards and/or Temporary Labor Committees may 
be appointed, within the jurisdictions of the respective National 
Labor Boards above specified, in the following manner: 

Any National Labor Board shall establish a Regional Labor 
Board (or a Temporary Labor Committee to deal only with a 
particular labor problem) upon written request from a National 
Compliance Board stating that in an area specified in such re- 
quest there exists a sufficient demand to justify the same. In 
such case such National Labor Board shall establish : 

(a) A Regional Labor Board for such area, with such num- 
ber of members as it finds advisable and so selected that equal 
numbers of its members shall represent employers and em- 
ployees ; and its membership shall be truly representative respec- 
tively, of the types of employer-employee relationships in such 
area. The Chairman shall be selected on the principle set forth 
in A (1). The existence of any such Regional Labor Board 
shall be terminated by such National Labor Board at any time 
upon request of the appropriate National Compliance Board ; or 

(b) A Temporary Labor Committee truly representative of 
the parties to the problem, with a Chairman selected on the prin- 
ciple set forth in A (1), which shall dissolve when such problem 
has been disposed of. 

C. All Graphic Arts Labor Boards and Temporary Labor Com- 
mittees shall be limited to dealing exclusively with such matters and 
in such manner as is provided for in Paragraph 2 of this Section. 



43 

Paragraph 2. Procedt're. — (1) The procedure for the settlement 
of claims of alleged violations of the provisions of Sections 20 to 
23, inclusive, of this Code shall be as follows : 

(a) Such claims shall first be taken up through such arrange- 
ments or procedure as exists within the establishment involved, 
provided that such arrangements or procedures are definite and 
equitable and are properly posted in the establishment. If no 
such arrangements are posted, any complaining emploj'ee shall 
deliver to the manager or proprietor a specific written complaint 
and allow at least 10 days for its adjustment. 

(b) A claim not settled under the provision of Clause (a) 
may be taken before the appropriate Graphic Arts Regional 
Labor Board, if any exists covering the territory where such es- 
tablishment is located, or before a Temporary Labor Committee 
appointed to deal with the particular labor problem involved. 
Where no such Regional Labor Board exists, or no such Tempo- 
rary Labor Committee has been appointed, such a claim may be 
taken directly to the appropriate National Graphic Arts Labor 
Board. 

(c) Except where they act under Sub-clause (d) or under 
Clause (2) below. National and Regional Labor Boards and 
Temporary Labor Committees shall act only upon written peti- 
tion accompanied by an affidavit showing that Clause (1) (a) of 
Paragraph 2 hereof has been complied with, setting forth the 
result of action taken thereunder, and making proof of service 
of the petition personally or by registered mail upon each estab- 
lishment concerned, its National Code Authority, and its Na- 
tional Compliance Board. The Labor Board or Temporary 
Labor Committee concerned shall thereupon defer action for 
twenty (20) days after the filing of such petition (unless the 
National Code Authority concerned shall consent to earlier 
action), in order to permit such National Code Authority to 
investigate the facts, endeavor to remedy the same, and to re- 
port its action thereon to such Labor Board or Temporary Labor 
Committee. 

(d) Each decision of a Regional Labor Board or a Tempo- 
rary Labor Committee under (1) of Paragraph 2 shall be re- 

Eorted in writing within 20 days to the appropriate National 
abor Board and shall be final, except when reviewed and mod- 
ified or reversed by such National Labor Board on its own mo- 
tion. Each decision of a National Labor Board shall be final. 

(2) Any National or Regional Labor Board or Temporary Labor 
Committee may act with respect to, or assist in the solution of, spe- 
cific questions relating to wages, hours, or other conditions of labor, 
upon the written request or consent of the National Code Authorities 
concerned, made or given at the suggestion of some establishment or 
establishments affected thereby. In each case, such Board or Com- 
mittee shall determine its own procedure. 

(3) During the consideration of any controversy, neither party 
shall change the conditions existing at the time the controversy 
arose, or utilize any coercive or retaliatory measures to compel the 
other party to accede to its demands. 



44 

Paragkapii 3. Expense. — Members of National and Regional 
Labor Boards and Temporary Labor Committees shall serve without 
compensation but shall be reimbursed for ordinary expenses ; pro- 
vided, that Chairmen may be compensated on a basis approved by 
the National Compliance Boards concerned. 

The shares of the expenses of the Graphic Arts National and Re- 
gional Labor Boards and Temporary Labor Committees, to be borne 
by the Industries concerned, and their allocation among the various 
Industries, shall be determined by agreement among the National 
Code Authorities within the jurisdiction of the respective Graphic 
Arts Labor Boards, such allocation to be made as nearly as possible 
upon the basis of the amount of time devoted to the affairs of the 
respective National Code Authorities by each such Graphic Arts 
Labor Board or Temporary Labor Committee. In case such agree- 
ment cannot be readied by the National Code Authorities con- 
cerned, the matter shall be determined by the National Graphic Arts 
Coordinating Committee. The National Graphic Arts Coordinat- 
ing Committee shall have charge of the collection and disbursement 
of such funds.^° 

SECTION 2 5 TEMPORARY RELEASES 

After the National Graphic Arts Coordinating Committee has 
submitted to and secured the approval of the Administrator of a 
procedure to cover the granting of temporary releases from any 
provision of Article II of this Code, upon the application of an 
establishment, because of an emergency existing therein, to its Re- 
gional or National Code Authority, such a temporary release may 
be granted by such Code Authority. Any such temporary release 
must be specific as to its duration and must immediately be reported 
by the body granting it to the appropriate National Compliance 
Board and National Labor Board, and, if granted by a Regional 
Code Authority, to its National Code Authority. Permanent re- 
leases or exemptions may be granted only as in Section 5 (d) 9 
provided. 

Article III — Maintenance or Fair Competition" 

SECTION 2 6 — ACCOUNTING AND COST FINDING 

(a) Maintenance of systems. — Each National Code Authority, 
within thirty (30) days after the effective date of this Code, shall 
declare for its Industry uniform principles of accounting and cost 
finding, Avhich shall be subject to the review of the National Graphic 
Arts Coordinating Committee and the Administrator, and shall pre- 
scribe a method of accounting and a method of cost finding each in 
conformity with such principles and readily adaptable, and each of 
which shall bo subject to the review of the National Graphic Arts 
Coordinating Committee; and each establishment shall use a method 
of accounting and a method of cost finding each of which shall con- 
form to the principles declared and be at least as detailed and com- 

** Deleted as per par. 1 of ExecuUve order approving this Code. 



45 

plete as the method prescribed, with such variations of application 
and exceptions as may upon proper showing be approved by such 
National Code Authority. 

(b) Economic costs ^ production standards arid cost determination 
schedules. — Each National Code Authority, within thirty (30) days 
after the effective date of this Code, shall compile cost and produc- 
tion records from comparable and representative establishments to 
determine departmental economic hourly cost rates and production 
standards and cost determination schedules, and, subject to the re- 
view of the National Graphic Arts Coordinating Committee and 
the Administrator, shall declare and from time to time revise and 
declare such cost rates, standards, and schedules. 

(c) Cost determination. — After the principles and methods of 
accounting and cost finding and/or the departmental economic hourly 
cost rates and production standards and/or cost determination sched- 
ules for an Industry have been declared and prescribed as provided 
in paragraphs (a) and (b), each establishment therein shall deter- 
mine the costs of its products : 

1. In conformity with the principles and methods of account- 
ing and cost finding as provided in paragraph (a) ; or 

2. Upon departmental economic hourly cost rates and pro- 
duction standards as provided in paragraph (b), including the 
cost of all materials used ; or 

3. Upon cost determination schedules as provided in para- 
graph (b) ; 

it being understood that an establishment may use the method, herein 
provided, resulting in tlie lowest costs of its products. Until the 
methods for determining costs as above set forth are prescribed, it is 
intended that each establishment will use such a method as has been 
prescribed ; except that until the cost finding method provided in 
paragraph (a) has been prescribed by its National Code Authority, 
an establishment having an adequate cost finding system may use 
such system, subject to the review of its National Code Authority. 

(d) Selling helow cost prohihited. — After the costs of its products 
can be determined as provided in paragraph (c) of this Section, no 
establishment shall sell or offer to sell any product at a price or upon 
any terms or conditions that will result in a sale of such product for 
less than the cost thereof as so determined ; provided, however, that 
for a period of twelve (12) months after the effective date of this 
Code and thereafter until revoked bv the National Code Authority 
concerned with the approval of the Administrator, an establishment 
may in defense of its business meet a bona fide known competitive 
bid of any other establishment provided that the facts of a bid so 
made shall be immediately reported to its National Code Authority 
and to any other National Code Authority concerned ; and provided, 
further, that any issue of any newspaper or periodical may be sold 
or delivered by the publishers at less than the cost thereof as definecl 
in paragraph (c) of this Section, and any bona fide issue of any 
advertising newspaper may be delivered by the publishers without 
cost to the reader. 

Any National Code Authority may establish departmental eco- 
nomic hourly cost rates and production standards or cost determina- 
tion schedules, and when such costs have been so established they 



46 

may be declared by the National Code Authority or by the National 
Product Group with which any such product is identified. Such 
declaration by a National Code Authority or a National Product 
Group shall be binding only after it has been communicated to the 
Consumers Advisory Board of the National Eecovery Administra- 
tion and approved by the National Graphic Arts Coordinating Com- 
mittee and by the Administrator after such notice and hearing as he 
may prescribe. After the approval of any such declaration no estab- 
lishment shall sell or offer to sell any such product at less than such 
costs. 

(e) Ojien price plans. — A National Product Group, a National 
Code Authority, or any specialized or regional group of establish- 
ments within the jurisdiction of a National Code Authority, may 
adopt an Open Price Plan, which shall become effective not less than 
ten (10) days after adoption, provided any such plan substantially 
conforms to the provisions hereinafter set forth, does not permit 
selling beloAv cost as cost is defined in paragraph (c) of this Section, 
and, further, conforms to such rules and regulations as the National 
Product Group or National Code Authority concerned may from 
time to time prescribe subject to the review of the National Graphic 
Arts Coordinating Committee. 

1. Within ten (10) days after the effective date of any Open 
Price Plan, each establishment, unless excepted by the provisions 
of such Plan, shall file with the National Product Group or 
National Code Authority concerned a list giving the complete 
schedules of prices and/or departmental hourly rates and pro- 
duction standards used and/or cost determination schedules 
and /or catalogues as such plan may require together with terms 
and conditions of sale of all products included in such Open 
Price Plan and offered for sale by such establishment, which list 
shall become effective in not less than seven (7) days after the 
date so filed and shall remain effective until revised as herein- 
after provided. 

2. An establishment having filed a list with a National Prod- 
uct Group or a National Code Authority may revise, change or 
modify such list by filing with the National Product Group or 
National Code Authority concerned a revision of such list, which 
revision shall become effective in not less than seven (7) nor 
more than ten (10) days after the date so filed. 

3. An establishment filing a list or a revision of a list shall at 
the same time furnish the National Product Group or National 
Code Authority concerned such copies thereof as may be re- 
qiiired, and the National Product Group or National Code Au- 
thority shall within five (5) days after the filing of the list or 
revision thereof make same available to all interested persons 
in such manner as may seem most practicable. 

4. No establishment shall sell or offer to sell any product cov- 
ered by such Open Price Plan to which it is subject at a price or 
prices lower or upon terms and conditions more favorable than 
stated in the list or revision thereof filed by it as hereinabove 
provided. However, for a period not exceeding ten (10) days 
after the effective date of an^ revised list, any establishment may 
sell as low as any price specified in such revised list. 



47 

Any such Open Price Plan may be modified, discontinued or dis- 
solved at any time by the group or body originally adopting same, 
written notice of which action shall be filed with and made avail- 
able by the National Product Group or National Code Authority 
concerned. 

All rules and regulations governing an adopted Open Price Plan 
and all lists filed thereunder shall be subject to the review of the 
Administrator. 

(f) Guides of fair value. — Based on such accurate records and 
statistics as it may compile and/or other acceptable data and in- 
formation and subject to the review or approval thereof of the 
National Graphic Arts Coordinating Committee, a National Code 
Authority may publish or approve for its Industry or for any defined 
geographical area price determination schedules for as many kinds 
and classes of products of its establishments as may be desirable and 
])racticable, and a National Product Group may publish or approve 
price determination schedules for any product or products with 
which it is identified. Such schedules when approved shall serve 
as guides of fair value. 

(g) Special competition. — Any state (including political sub- 
divisions thereof), ecclesiastical, religious, educational, charitable, 
welfare, penal, or any institution which is publicly endowed or sup- 
ported in whole or in part by contributions, or wliich is exempt from 
the payment of any local, state or Federal taxes whatsoever, when 
competing with any other establishment not so endowed, supported 
or exempted, shall determine its costs upon departmental economic 
hourly cost rates or upon cost determination schedules established for 
the Industry in its region as defined in Section 26 paragraph (c) of 
this Code, excepting as to books not published for profit, and its own 
newspapers and periodicals; provided, however, that any such in- 
stitution which shall first satisfy the National Code Authority as to 
the competitive fairness and adequacy of its accounting and cost- 
finding system may, if it so desires, determine its costs on the basis 
of such system.^^ 

SECTION 27 UNFAIR PRACTICES 

(a) Inaccurate records. — No establishment shall keep records of 
facts (pertinent to this Code) which are inaccurate in any material 
particular or use misleading or deceptive methods of determining 
costs in general or of a specific job, or withhold from or insert in any 
quotation or invoice any statement which makes it inaccurate in any 
material particular. 

(b) I)ia.ccurate representation. — No establishment shall use ad- 
vertising or other representation which is inaccurate in any material 
particular as to its product, production facilities, merchandise, serv- 
ices or terms, or in any way misrepresent the origin, preparation, 
process, quality, kind, weight, substance, grade, brand, or quantity 
of its product or printed matter or the circulation or distribution 
thereof. 



" See par. 6 of Executive order approving this Code. 



48 

(c) Inaccurate references to a competitor. — No establishment shall, 
in its own advertising or other representation, refer inaccurately in 
any material particular to any competitor or his product, production 
facilities, merchandise, values, services, or terms. 

(d) Deliveries on consignment. — No establishment shall deliver 
any product on consignment except under a signed contract or under 
regulations prescribed by its National Code Authority or the Na- 
tional Product Group of which it may be a member. 

(e) Discrimination. — No establishment shall secretly or otherwise 
give or offer to give any rebate, allowance, premium, " free goods ", 
refund, commission, term of credit, unearned discount, special serv- 
ice or other valuable consideration which is discriminating as be- 
tween customers of the same class or which will result in selling below 
cost as prohibited in Section 26, paragraph (d) (in the event of any 
controversy, the definition of " class ", as herein used, shall be de- 
termined by the National Code Authority concerned). 

(f ) Com.r)wrcial hribery. — No establishment of this Industry shall 
give, permit to be given or directly offer to give, anything of value 
lor the purpose of influencing or rewarding the action of any em- 
ployee, agent or representative of another in relation to the business 
of the employer of such employee, the principal of such agent or the 
represented party, without the knowledge of such employer, prin- 
cipal or party. Commercial bribery provisions shall not be con- 
strued to prohibit free and general distribution of articles connnonly 
used for advertising except so far as such articles are actually used 
for commercial bribery as hereinabove defined. 

(g) Threats of law suits. — No establishment shall publish or cir- 
culate unjustified or unwarranted threats of legal proceedings which 
tend to have the effect of harassing or intimidating competitors or 
their customers, 

(h) Interference loith contracts. — No establishment shall induce 
or attempt to induce the breach of an existing contract between an 
establishment and its employee or customer or source of supply ; nor 
shall any establishment interfere with or obstruct the performance 
of such contractual duties or services. 

(i) Appropriation of design. — No establishment shall usurp or 
maKe use of any design, plan, drawing, sketch, dummy or copy 
which has been submitted to a prospective customer by a competing 
establishment and is rightfully and plainly marked as having been 
originated or devised by and being the property of such competing 
establishment and which has not been purchased by such prospective 
customer. 

(j) Submitting hids. — No establishment shall make a fictitious 
bid for the purpose of misleading or deceiving a customer or com- 
petitor^ or attempt thereby to cause any bid already submitted on 
a specific proposal to be rejected for the purpose of securing an 
advantage over other bidders in a subsequent proposal. 

(k) Partial shipments. — No establishment shall accept an order 
for a large quantity of any of its products or merchandise and make 
delivery thereof in small amounts at quantity prices that will have 
the effect of extending to any customer any s])ccial service or privi- 
lege not extended to all customers of the same class. 



49 

(1) Uniform sales contract form. — A National Code Authority or 
a National Product Group may adopt a uniform sales contract form 
for the use of its Industry or Group or for any product or for a 
defined geographical area, and when so adopted no establishment 
therein shall sell or oifer to sell any product upon terms and condi- 
tions more favorable to the customer than those contained in such 
uniform sales contract form. Such uniform sales contract form shall 
be subject to review by the Graphic Arts Coordinating Committee 
and the Administrator. 

(m) Acts of employees and agents. — No establishment shall know- 
ingly suffer its employee or agent to commit an act which is pro- 
hibited in this Section. 

Approved Code No. 287. 
Registry No. 599-33. 



Schedules 

SCHEDITLE A 

The Graphic Arts Industries and their respective National Code Authorities 
are as follows: 

No. A-1. Commercial Relief Printing. — This Industry shall include all Com- 
mercial Relief Printing Establishments which were on September 18, 1933, 
members of the United Typothetae of America or any trade organization then 
cooperating with the National Executive Committee of the Printing Industry, 
appointed at the Chicago Conference, held on July 13 and 14, 1933, or with 
any organization then cooperating with said Executive Committee; and all 
Commercial Relief Printing Establishments located within any metropolitan- 
area and all Commercial Relief Printing Establishments having an annual sales 
volume of $25,000 or more located in any non-metropolitan-area which were 
not, on September 18, 1933, members of an organization designated as a Na- 
tional Code Authority or any trade organization then cooperating with such 
National Code Authority or with any organization then cooperating with such 
National Code Authority. Any Commercial Relief Printing Establishment 
which was, on September 18, 1933, a member of the United Typothetae of 
America or of any trade organization then coopei-ating with the said National 
Executive Committee of the Printing Industry, or with any organization then 
cooperating with said Executive Committee, and also was a member of the 
National Editorial Association or of any trade organization then cooperating 
with the National Editorial Association, or with any organization then coop- 
erating with said National Editorial Association, shall be included in this 
Industry. 

The National Code Authority of this Industry is tlie United Typothetae of 
America. 

No. A-2. Non-Metropolitan Newspaper Publishing and Printing. — This Indus- 
try shall include all Newspaper and Advertising Newspaper Publishing and 
Newspaper Printing, and Commercial Relief Printing Establishments which 
were, on September 18, 1933, members of the National Editorial Association, or 
any ti-ade organization then cooperating with the National Editorial Associa- 
tion, or with any organization then cooperating with said National Editorial 
Association ; and all other establishments engaged in publishing and/or print- 
ing newspapers or advertising newspapers (except those establishments in 
which one or more daily newspapers are published and/or printed) ; all Com- 
mercial Relief Printing Establishments having an annual sales volume of less 
than $25,000, located outside of the metropolitan-areas, as herein defined, which 
establishments were not, on September 18, 1933, members of an organization 
designated as a National Code Authority, or any trade organization then coop- 
erating with such National Code Authority, or with any organization then co- 
operating with such National Code Authority. Any Newspaper and/or Adver- 
tising New.spaper Publishing, and/or Newspaper Printing Establishment which 
was, on September 18, 1933, a member of the United Typothetae of America, 
or of any trade organization then cooperating with the National Executive 
Committee of the Printing Industry, or with any organization then cooperating 
with said Executive Committee, and also was a member of the National Edi- 
torial Association or of any trade organization then cooperating with the 
National Editorial Association, or with any organization tben cooperating with 
said National Editorial Association, shall be included in tliis Industry. 

The National Code Authority of this Industry is the Board of Directors of 
the National Editorial Association augmented as provided in Appendix A-2. 

No. AS. Periodical Puhlishing and Printing. — This Industry shall include all 
establishments i)Ublishiiig but not printing periodicals and those establishments 
publishing and r)rinting periodicals issued at regular intervals, but not less 
frequently than four times per year and from which the publisher derives circu- 
lation and/or advertising revenue. 

The National Code Aniliority of this Industry is the Board of Directors of 
the Periodical PuMIsliers Institute. 

No. A-//. Book Manufacturing.- 'VM'^ Industry shall include all establishments 
engaged in one or more of the professes of book manufacturing; book composj- 

(50) 



51 

tlon, book plate making, book relief printiiio:, book lithograpliy, edition binding, 
library binding, book pamphlet binding, deluxe (extra) binding; mechanical 
departments of publisher owned plants engaged in textbook, subscription, refer- 
ence, and general book publishing; and producers of specialties involving book 
binding processes, such as supertinished covers, loose-leaf covers, and similar 
products requiring binding processes. 

The National Code Authority of this Industry is the Boj rd of Directors of 
the Book Manufacturers Institute. 

No. A-5. Daily 'Newspaper Publishing and Printing. — This Industry shall 
include all establishments publishing and/or printing daily newspapers, ex- 
cept those which subscribe or assent to the Code of the Daily Nev^'spaper 
Publishing Business, and except those, not otherwise subject to the provisions 
of this Code, which do not assent or subscribe to the provisions of this Code 
governing the Daily Newspaper Publishing and Printing Industry; and this 
Industry shall also Include all Commercial Relief Printing Establishments which 
print daily newspapers and which would otherwise be included in Industry A-2. 

The National Code Authority of this Industry is the Board of Directors of 
the National Editorial Association augmented as provided in Appendix A-5. 

No. B-1. Lithographic Printing. — This Industry shall include all establish- 
ments using lithographic, planographic, or photo-lithographic printing processes, 
and those producing transfers. 

The National Code Authority of this Industry is the Board of Directors of 
the Lithographers National Association. 

No. C-1. QravurG Printing. — This Industry shall include all establishments 
engaged in intaglio process engraving and printing of gravure, rotogravure 
and rotary photogravure except tl)ose producing transfers. 

The National Code Authority of this Industry is the Board of Directors of 
the National Gravure Printers Association. 

No. C-2. Steel and Copperplate Engraving and Printing. — This Industry shall 
include all establishments engaged in intaglio engraving and printing, including 
flat plate photogravure ; and excepting those engaged in the intaglio process en- 
graving and printing of gravure, rotogravure and rotary photogravure and 
those engaged in engraving bank notes and securities acceptable to all stock 
exchanges of the country and those producing transfers. 

The National Code Authority of this Industry is the Executive Committee of 
the Engraved Stationery Manufacturers Association. 

No. C-3. Securities Engraving and Printing. — This Industry shall include all 
establishments engaged in producing securities acceptable to all stock exchanges 
of the country, and which do not produce bank notes. 

The National Code Authority of this Industry is the Executive Committee of 
the Association of Bank Note Companies. 

No. C-4. Bank Note Engraving and Printing. — This Industry shall include all 
establishments engaged in producing securities acceptable to all stock exchanges 
of the country and which produce bank notes. 

The National Code Authority of this Industry is (to be determined). 

No. D-1. Trade Typesetting. — This Industry shall include all establishments 
engaged in tlie production or partial production and sale to others of type- 
setting; and all establishments engaged in the production or partial produc- 
tion of typesetting ; excepting those establishments included in other Industries 
subject to this Code ; and all establishments which purchase such typesetting 
for purposes of resale. 

The National Code Authority of this Industry is the Executive Committee 
of the International Trade Composition Association. 

No. D-2. Trade Lithographic Plate Making. — This Industry shall include all 
establishments engaged in the production or partial production and sale to 
others of lithogi'aphic plates irrespective of whether such plates are to be 
used for offset or straight methods of lithography ; and all establishments en- 
gaged in the production or partial production of such plates, excepting those 
establishments included in other Industries subject to this Code ; and all estab- 
lishments which purchase such plates for purposes of resale. 

The National Code Authority of this Industry is the Board of Directors of 
the Lithographic Allied Trade Service Association, Inc. 

No. D-3. Advertising Typography. — This Industry shall include all estab- 
lishments engaged in the production and sale to others of typesetting of adver- 
tisements which are intended to appear in newspapers, magazines, periodicals 
and other publications ; and all establishments engaged in the production of 
the typesetting of such advertisements, excepting those establishments in- 



52 

eluded in other Industries subject to this Code; and all establishments which 
purchase such typesetting of such advertisements for purposes of resale. 

The National Code Authority of this Industry is the Executive Committee 
of the Advertising Typographers of America. 

No. D-Jf. Trade Mounting and Finishing. — This Industry shall Include all 
establishments engaged in the production or partial production and sale to 
others of mounting and finishing services, die cutting, straight cutting, varnish- 
ing, gumming, embossing, roller embossing, tinedging, map mounting, punching, 
perforating, eyeletting, or other similar operations upon cardboard, paper, or 
paper-like substances, either printed or imprinted ; and all establishments en- 
gaged in the production or partial production of such mounting and finishing, 
excepting those establishments included in other industries subject to this Code ; 
and all establishments which purchase such mounting and finishing for purposes 
of resale. 

The National Code Authority of this Industry shall consist of seven (7) indi- 
viduals, two (2) of whom shall be chosen by the Board of Directors of the Asso- 
ciation of Mounters and Finishers, Inc. from their own number, two (2) by the 
Board of Directors of the Lithographers and Printers Finishers Association 
from their own number, and two (2) by the Board of Directors of the Graphic 
Arts Finishing Association from their own number, and one (1) of whom shall 
be elected by the six (6) so chosen. 

No. D-5. Trade Binding and Paper Ruling. — This Industry shall include all 
establishments engaged in the production or partial production and sale to 
others of binding or paper ruling services ; and all establishments engaged in 
the production or partial production of such binding or paper ruling, excepting 
those establishments included in other Industries subject to this Code ; and all 
establishments which purchase such binding or paper ruling for purposes of 
resale. 

The National Code Authority of this Industry is the Board of Directors of 
the Book Manufacturers Institute. 

SCHEDTJLE B 

The National Products Groups are as follows : 

No. E-1. Advertising Newspapers. — This group shall Include all member 
establishments which are engaged in the publication, distribution or sale of a 
publication of newspaper format and size, devoted in whole or in part to retail 
news in the form of display advertising of one or more advertisers, delivered 
by carrier without cost to the reader, and not published by or in conjunction 
with any newspaper. 

The administrative agency for this Product Group is the Board of Trustees 
of the American Shopping News Publishers' Association, Inc. 

No. E-2. Bank and Commercial Stationery. — This group shall include all 
member establishments which are engaged in the production and/or distribu- 
tion of bank pass books ; lithographed' bank and commercial stationery and 
forms ; lithographed checks, notes and drafts, including the imprinting and 
binding thereof ; and lithographed or printed bank bookkeeping forms. 

The administrative agency for this Product Group is the Board of Directors 
of the American Institute of Bank and Commercial Stationers. 

No. E-3. Decalcoma/nia and Transparency. — This group shall include all mem- 
ber establishments which are engaged in manufacturing their products either 
by the lithographic process, or by stencil or other processes, on paper covered 
with a decalcomania coating; and those engaged in manufacturing their prod- 
ucts by the lithographic process, using a translucent paper, varnished on either 
or both sides. 

The administrative agency of this Product Group is the Director of the 
Decalcomanin Association of America. 

No. E-Jf. Greeting Cards. — This group shall include all member establishments 
which are engaged in the manufacture, jobbing, wholesaling, direct selling, and 
distributing of greeting cards. 

The administrative agency of this Product Group is the Board of Directors 
of the National Greeting Card Association. 

No. E-5. Labels. — This group shall include all member establishments which 
are engaged in the commercial production and/or sale of labels, either sepa- 
rately or in combination with other articles, except those specifically included 
in National Product Group No. E-12. 

The administrative agency of this Product Group is the Board of Directors 
of the Label Manufacturers Association. 



53 

No. E-6. Music Printing. — This group shall include all member establishments 
which are engaged in music relief printing, music lithographing, music engrav- 
ing, and music autographing. 

The administrative agency of this Product Group is the Board of Directors 
of the National Music Printers and Allied Trades Associations, Inc. 

No. E-7. Photo-lithographing. — This group shall include all member establish- 
ments engaged in the sale and distribution of photo-lithographic products and 
services. 

The administrative agency of this Product Group is the Board of Directors 
of the National Association of Photo-lithogiaphers. 

No. E-S. Picture PublisJiers and Picture Importers. — This group shall include 
all member establishments which publish or represent publishers, and import 
or represent importers, or are engaged in the publication or importation of 
" Pictures for Resale." 

The expression " Pictures for Resale " is understood to mean : Pictures in the 
form of the pictorial and of the graphic arts for resale through art dealers 
as distinguished from pictures in any form gratuitously distributed. 

The administrative agency of this Product Group is the Executive Com- 
mittee of the Picture Publishers and Importers Association. 

No. E-9. Playing Cards. — This group shall include nil member establishments 
which are engaged in the manufacture and distribution of playing cards. 

The administrative agency of this Product Grouji is (to be determined). 

No. E-10. Posters. — This group shall include all member establishments spe- 
cializing in the pi-oduction of posters, cards, cloth and fiber banners, etc., by 
relief printing for advertising or display ijurposes. 

The administrative agency of this Product Group is the Executive Com- 
mittee of the Poster Printers Association of the United States and Canada. 

No. E-11. Standardized Stationery and business Forms. — This group shall in- 
clude all member establishments which print by any process stationery and 
business forms, except as included in National Product Group No. E-2. 

The administrative agency of this Product Group is (to be determined). 

No. E-12. Textile and Hosiery Packing A[anufacturers. — This group shall in- 
clude all member establishments which are engaged in the manufacture and/or 
distribution of textile and hosiery packing products, whether they be directly or 
indirectly engaged in tlie production of textile and hosiery packings either for 
general commercial use and/or specific purposes such as box wraps, tops, over- 
wraps, bands, labels, rider tickets, sample tickets, stickers, seals, tags, inserts, 
fly sheets. 

The administrative agency of this Product Group is the Executive Board of 
the National Association of Textile and Hosiery Packing Manufacturers. 

No. E-13. Ticket and Coupon. — This group shall include all member estab- 
lishments which are engaged in the manufacture of tickets, identification checks 
and coupons and those engaged in the manufacture and/or distribution of thrift 
systems and supplies. 

Tlio administrative agency of this Product Group is the Ticket and Coupon 
Manufacturers' Council. 

No. E-llf. Dry Transfer Ma/nufacturers. — This group shall include all member 
establishments which produce dry transfers for general commercial use and for 
embroidery, decorative or like special purposes. 

The administrative agency of this Product Group is the Executive Com- 
mittee of the National Association of Dry Transfer Manufacturers. 

No. E-15. CMireh Envelope System's. — This group shall include all member 
establishments producing and selling church envelope systems. 

The administrative agency of this Product Group is the Executive Committee 
of the Association of Producers of Church Envelope Systems. 

No. E-16. Law Printers. — This group shall include all member establishments 
producing and selling law printing of the characters commonly produced in 
law printei'S plants, such as pleadings, transcripts, records, reports and briefs, 
prepared for filing in proceedings pending before courts, commissions and other 
similar judicial and administrative bodies. 

The administrative agency of this Product Group is the National Executive 
Committee of the National Law Printers Institute. 

No. E-11. Map Publishers. — This group shall include all member establish- 
ments creating and publishing maps, atlases, charts and globes. 

The administrative agency of this Product Group is fiie Board of DU'ectors 
of the Map Publishers Association of the United States. 



APPENDICES 



APPENDIX OF INDUSTRY NO. A-1 

Commercial Relief Printing 
The provisions of this Appendix are applicable only to Industry No. A-1. 
administrative provisions 

(a) The administration of this Code for the Commercial Relief Industry 
shall be under the jurisdiction of the United Typothetae of America, which is 
designated as the National Code Authority for this Industry. 

(b) All proceedings of the National Code Authority shall be in conformity 
with the provisions of the Charter and By-Laws of the United Typothetae of 
America and with the provisions of this Code. 

maintenance of fair competition 

(c) From the effective date of this Code and until the National Code Author- 
ity of this Industry shall have declared departmental economic hourly cost rates 
and production standards and cost determination schedules as provided in 
Section 26 (b), no establisliment in any region shall sell or offer to sell any 
product listed in an approved and available catalog already in general use in 
such region on any other basis or at a price lower than contained in such 
catalog, provided (1) that such catalog shall first have been submitted to the 
Consumers Advisory Board of the National Recovery Administration and ap- 
proved by the Administrator, and (2) that such prohibition shall not apply to 
any individual order exceeding five hundred dollars ($500) in amount, nor to 
any combined or contract order exceeding five thousand dollars ($5,000) in 
amount per year. 

(d) After the National Code Authority of this Industry shall have declared 
the costs of any products as provided in Section 26 (d), no establishment shall 
sell or offer to sell any such products at less than such costs, provided that any 
such prohibition shall not apply to any individual order exceeding five hundred 
dollars ($500) in amount nor to any combined or contract order exceeding five 
thousand dollars ($5,000) in amount per year. 

APPENDIX OF INDUSTRY NO. A-2 

Non-Metropolitan Newspaper Publishing and Printing 

The provisions of this Appendix are applicable only to Industry No. A-2. 

administrative provisions 

(a) The administration of this Code for the Non-Metropolitan Newspaper 
Pubiisliing and Printing Industry shall be under the jurisdiction of the Na- 
tional Editorial Association, tiie Board of Directors of which is designated as 
the National Code Autiiority for this Industry, with the further provision that 
state, regional and/or local administration under this Code shall be carried on 
through state, regional, and/or local organizations now cooperating and/or affili- 
ated, or to be affiliated, with tlie National Editorial Association ; provided, 
that the Board of Directors of the National Editorial Association l)e augmented 
for the purpose of administering this Code only, by at least four members of 
the Newspaper Association Managers, Inc., one of whom shall be from the 
Pacific Slope, one from the Middle-west, one from the South, and one from the 

(54) 



55 

East. The selection of the representatives from the Newspaper Association 
Managers, Inc., and the allocation of the .section from which each shall be 
selected, shall be made by Newspaper Association Managers, Inc. ; provided 
further, that no member of Newspaper Association Managers, Inc., shall be 
eligible to membership on this administering body who resides in a state in 
which there resides a regular member of the Board of Directors of the National 
Editorial Association. 

(b) All proceedings of the National Code Authority shall be in conformity 
with the provisions of the constitution and by-laws of the National Editorial 
Association and with the provisions of this Code. 

(c) The National Code Authority shall publish and distribute at regular 
stated intervals a bulletin and/or service letter which shall contain rules and 
information pertaining to the administration of this Code. 

MAINTENANCE OF FAIR COMPETITION 

(d) Official Notices of Publication. — In each state where a rate is estab- 
lished by law for the giving of official notice by newspaper publications, the 
price to be charged for all notices required to be published by state or Federal 
laws shall not be less than such statutory rate. Failure to comply with this 
provision shall constitute a violation of this Code. 

APPENDIX OF INDUSTRY NO. A-3 

Periodical Publishing and Printing 
The provisions of this Appendix are applicable only to Industry No. A-3. 
administrative provisions 

(a) The administration of this Code for the Periodical Publishing and Print- 
ing Industry shall be under the jurisdiction of the Periodical Publishers In- 
stitute, the Board of Directors of which is designated as the National Code 
Authority for this Industry. 

(b) All the proceedings of the National Code Authority shall be in conform- 
ity with the provisions of the articles of organization, regulations and by-laws 
of the Periodical Publishers Institute and with the provisions of this Code. 

maintenance of fair competition 

(c) Editorial independence by publishers must be kept inviolate. 

(d) No establishment shall violate any regulation adopted by the National 
Code Authority designed to prevent the publication of misleading and/or un- 
truthful advertising. 

(e) Circulation Practices. — The circulation records of every publisher shall 
be open freely for inspection by the United States Post Office Department and 
by autliorized representatives of the National Code Authority, and all reason- 
able auditable information which they request shall be furnished. After one 
year from the effective date of this Code, the publisher of each periodical 
shall publish in the first issue of such periodical after April 30th and October 
80th of each year a sworn statement showing the circulation figures covering the 
issues of the preceding calendar six months' period ending December Slst and 
June 30th, respectively, which he has stated to his advertisers was the basis 
upon which he sold his advertising. In addition each publisher shall file 
with the Secretary of the Institute, on blanks furnished by the Institute, a 
sworn statement of such circulation figures divided between copies actually 
sold and copies distributed free. Such information shall be made available for 
inspection at the office of the secretary of the National Code Authority. Failure 
to comply with the I'equirements of this paragraph shall constitute a violation 
of this Code. 

(f) Advertising Rates. — It is a requirement of this Code that publishers must 
file with the Secretary of the Institute a true and complete schedule of all ad- 
vertising rates. Failure to do so shall constitute a violation of this Code. 

(g) Maintenaiwe of Rates. — Publishers shall make no deviation from their 
published rate schedules on file with the Secretary of the Institute either in the 
form of money or other\\ase, or secretly extend to certain advertisers special 



56 

privileges not extended to all advertisers under like terms or conditions. Where 
terms provide for time or space discoimts and they are not actually earned, 
settlement must be made on short term basis. Any deviation shall constitute 
a violation of this Code. 

(h) Records. — Failure to maintain records or willfully maintaining or issu- 
ing an inaccurate or false record of circulation or of advertising shall constitute 
a violation of this Code. 

It will not be required that full circulation records be maintained by publica- 
tions where tlie advertising content docs not exceed 5 per cent of the total 
space. 

APPENDIX OF INDUSTRY NO. A-4 
Book MANUFACTtmiNG 
The provisions of this Appendix are applicable only to Industry No. A-4. 

ADMINISTRATIVE PROVISIONS 

(a) The administration of this Code for the Book Manufacturing Industry 
ehall be under the jurisdiction of the Book Manufacturers Institute, the Board 
of Directors of which is designated as the National Code Authority for thia 
Industry. 

(b) All proceedings of the National Code Authority shall be in conformity 
with the provisions of the by-laws of the Book Manufacturers Institute and 
with the provisions of this Code. 

(c) The National Code Authority shall set up such bureaus as it may deem 
necessary to guide its members in the granting of credit. Such bureaus shall 
secure reliable information as to the financial responsibility and credit stand- 
ing of customers of the Industry, and, in addition, it shall be the duty of every 
establishment operating under the provisions of this Code to transmit to such 
credit bureaus such information regarding the credit standing of any of its 
customers as the said credit bureau may request, including therein all open 
accounts overdue for 60 days or more. 

(d) The National Code Authority may make a survey of the equipment and 
productive capacity of each establishment operating under the provisions of thia 
Code. In determining the total productive capacity of each such establish- 
ment all mechanical equipment which may be already installed and available 
for service on the effective date of this Code (or under purchase contract on 
that date) shall be included and all such equipment registered with the National 
Code Authority ; thereafter, all proposed replacements and purchases of new 
equipment shall be registered with the National Code Authority prior to 
purchase. 

(e) After such survey of productive capacity and registration of equipment, 
it shall be the duty of the National Code Aiithority to advise members of the 
Industry contemplating the purchase of additional equipment. If in its opinion 
such purchase would have a harmful effect upon existing conditions of employ- 
ment or if such purchase would contribute to over-equipment in the Industry. 

(f) The National Code Authority may arrange for the scrapping or other 
disposal of equipment displaced by now equipment, in cooperation with the 
establishment disposing of it and/or the manufacturer or dealer receiving it. 

MAINTENANCE OF FAIR COMPETITION 

(g) No establishment shall alter, omit, or in any way modify the terras and 
conditions contained in the uniform sales contract form which may be adopted 
by the National Code Authority, and any such alteration, omission, or modifi- 
cation shall be a violation of this Code. 

(h) Any establishment may, for its own convon'ouce, accept quantity orders 
on a deferred billing basis, provided that the terms and conditions meet with 
the approval of the National Code Authority. 

(1) After the effertivi^ date of this Code no establishment shall grant terms 
in excess of those herein established. 

(j) 1. BilUng. — Comi)ositi<in, plate making, paper and printing shall be 
billed when completed; binding shall l)e l)illed upon completion of a specific 
order, or at the option of tJie binder, as the books are shipped; provided, that 
all unshipped trade books shall be billed within six months after completion 



57 

and all unsliipppd suhscript'on and text books shall be billed within one year 
after completion. 

2. Paiimcnt. — Maximum discount 2 per cent for payment in cash not later 
than the 15th of the month following billing; net end of month following 
billing; interest to be charged thereafter at the legal rate per annum. 

;k) When cash payments are not made by end of month following billing, 
only legal interest bearing trade acceptances may be taken, no discount allowed, 
and such trade acceptances must be given not later than the end of the month 
following date of billing. 

(1) The folding, plating, gathering and/or sewing of all unordered sheets, 
when such work is performed by the binder, shall be billed within one year 
after completion. 

LIBKAKY BINDING 

The provisions of this Section are applicable only to the Library Binders' 
Group of Industry No. A-4. 

(1) Sped ficai ions. — The standard to govern a Class "A" library book bind- 
ing shall be the specifications of the Book Manufacturers' Institute when 
approved by the American Library Association. 

(2) Credit and Terms. — Sales and service and/or library binding shall be, 
invoiced net, payable ten (10) days E.O.M. Sales of supplies may be made 
subject to a discount of 2% ten days E.O.M. at the option of the seller. It is 
considered that library binders may extend longer than usual commercial credit 
to public and quasi-public institutions. 

(3) No establishment shall alter, omit, or In any way modify the terms and 
conditions contained in the uniform sales contract form which may be adopted 
by the National Code Authority, and any such alteration, omission, or modifica- 
tion shall be a violation of this Code. 

SUPERFINISH COVER MANUFACTrRING 

The provisions of this Section are applicable only to the Superfinish Cover 
Manufacturing Group of Industry No. A-4. 

(1) Appro priaUoyi of Designs. — No establisliment shall usurp or make use 
of any design, plan, drawing, sketch, dummy or copy, originated by a com- 
peting establishment and submitted to a prospective customer which is plainly 
marked as being the property of the competing establishment or which has not 
been paid for by sucli prospective customer. This is not to be considered as 
prohibiting duplication of existing stock designs. 

(2) Use of Trade-Marks. — The manufacturer's trade-mark or other means of 
identification shall appear in the lower right-hand corner of the back-lid on all 
classes of school annual covers. 

(3) Advertising in Annuals. — Cover manufacturers shall not take advertising 
space in school annuals in excess of 2%% of the total cover contract price as 
billed by such manufacturers. 

(4) Terms and Discounts. — Shipment of all covers shall be f.o.b. the plant of 
manufacturer. 

Cash Discount: 2% ten days from date of invoice, 30 days net. 

C.O.D. Orders: 50% deposit with order, balance on delivery of covers. 

Time Discount : No discount shall be allowed for advance order placement 
but delivery date may be specified to regulate billing. 

Deferred Dating: No deferred payment dating. All payments uniformly 
due in 30 days from date of invoice. Interest shall be charged at legal 
rate after 30 days from date of invoice. 

APPENDIX OF INDUSTRY NO. A-5 

Daily Newspaper Publishing 

The provisions of this Appendix are applicable only to Industry No. A-5. 

administrative provisions 

(a) The administration of this Code for the Daily Newspaper Publishing 
and Printing Industry shall be under the jurisdiction of tlie National Editorial 
A.ssociation, the Board of Directors of which is designated as the National Code 
Authority for this Industry, with the further provision that state, regional 



58 

and/or local admiuistration under this Code shall be carried on through state, 
regional and/or local organizations now cooperating and/or affiliated, or to be 
affiliated, with the National Editorial Association, provided that the Board 
of Directors of the National Editorial Association shall be augmented for the 
purpose of administering this Code only, by at least four members of the News- 
paper Association Managers, Inc., which number may include, or be further 
augmented by the Board of Directors of the National Editorial Association 
to include, members of regional daily newspaper associations. 

(b) All proceedings of the National Code Authority shall be in conformity 
with the provisions of the constitution and by-laws of the National Editorial 
Association and with the provisions of this Code. 

(c) The National Code Authority shall publish and distribute at regular 
stated intervals a bulletin and/or service letter which shall contain rules and 
information pertaining to the administration of this Code. 

MAINTENANCE OF FAIR COMPETITION 

(d) Official Notices of Publication. — In each state where a rate is estab- 
lished by law for the giving of official notice by newspaper publications, the 
price to be charged for all notices required to be published by state or Federal 
laws shall not be less than such statutory rate. Failure to comply with this 
provision shall constitute a violation of this Code. 

APPENDIX OF INDUSTRY NO. B-1 

Lithographic Printing 
The provisions of this Appendix are applicable only to Industry No. B-1. 
administrative provisions 

(a) The administration of this Code for the Lithographic Printing Industry 
shall be under the jurisdiction of the Lithographers National Association, the 
Board of Directors of which is designated as the National Code Authority for 
this Industry. 

(b) All proceedings of the National Code Authority shall be in conformity 
with the provisions of the constitution of the Lithographers National Associa- 
tion and with the provisions of this Code. 

MAINTENANCE OF FAIR COMPETITION 

(c) No establishment shall imitate the exclusive trade marks, trade names, 
slogans or other marks of identification of any competitor. 

(d) No establishment shall alter, omit, or in any way modify the terms and 
conditions contained in the uniform sales contract form which may be adopted 
by the National Code Authority, and any such alteration, omission, or modifica- 
tion shall be a violation of this Code. 

APPENDIX OF INDUSTRY NO. C-1 

Gravure Printing 

The provisions of this Appendix are applicable only to Industry No. C-1. 

administrative provisions 

(a) The administration of this Code for the Gravure Printing Industry 
shall be under the jurisdiction of the National Gravure Printers Association, 
the Board of Directors of which is designated as the National Code Authority 
for this Industry. 

(b) All proceedings of tlie National Code Autliority shall be in conformity 
with tiie provisions of the conslitutiou and by-laws of the National Gravure 
Printers Association and with the provisions of tliis Code. 



59 

APPENDIX OF INDUSTRY NO. C-2 

Steel and Copperplate ENGRA^^NG and Printing 

The provisions of tliis Appendix are applicable only to Industry No. C-2. 

administrative provisions 

(a) The administration of this Code for the Steel and Copperplate Engrav- 
ing and Printing Industry shall be under the jurisdiction of the Engraved 
Stationery Manufacturers Association, the Executive Committee of which is 
designated as the National Code Authority for this Industry. 

(b) All proceedings of the National Code Authority shall he in conformity 
with the provisions of the by-laws of the Engraved Stationery Manufacturers 
Association and with the provisions of this Code. 

APPENDIX OF INDUSTRY No. D-1 
Trade Typesetting 
The provisions of this Appendix are applicable only to Industry No. D-1. 
administrative provisions 

(a) The administration of this Code for the Trade Typesetting Industry shall 
be under the jurisdiction of the International Trade Composition Association, 
the Executive Committee of which Is designated as the National Code Authority 
for this Industry. 

(b) All proceedings of the National Code Authority shall be In conformity 
with the provisions of the constitution and by-laws of the International Trade 
Composition As.sociation and with the provisions of this Code, provided that 
regional and/or local administration under this Code shall be carried on through 
regional and/or local organizations now operating and/or affiliated or to be 
affiliated with tlie International Trade Composition Association. 

MAINTENANCE OF FAIR COMPETITION 

(c) No establishment shall alter, omit, or in any way modify the terms and 
conditions contained in the uniform sales contract form which may be adopted 
by the National Code Authority, and any such alteration, omission, or modifica- 
tion shall be a violation of this Code. 

APPENDIX OF INDUSTRY NO. D-2 

Trade Lithographic Plate Making 
The provisions of this Appendix are applicable only to Industry No. D-2. 
administrative provisions 

(a) The administration of this Code for the Trade Lithographic Plate Mak- 
ing Industry shall be under the jurisdiction of the Lithographic Allied Trade 
Service Association, Inc., the Board of Directors of which is designated as the 
National Code Authority for this Industry. 

(b) All proceedings of the National Code Authority shall be in conformity 
with the provisions of the by-laws of the Lithographic Allied Trade Service 
Association, Inc., and with the provisions of this Code. 

maintenance or fair competition 

(c) The National Code Authority may require the mechanical and technical 
equipment of all establishments to be registered, and may require that all new 
additions to equipment shall be registered as acquired. 



60 

(d) All products shall be produced exclusively on the premises and in the 
plants or shops of establishments and no part of such work shall be done in 
the homes of employers or employees ; provided, one establishment may perform 
T\'ork for another establishment. ' 

APPENDIX OF INDUSTRY NO. D-3 

Advertising Typogeaphy 
The provisions of this Appendix are applicable only to Industry No. D-S. 

ADMINISTEATIVE PROVISIONS 

(a) The administration of this Code for the Advertising Typography Indus- 
try shall be under the jurisdiction of tlie Executive Committee of the Adver- 
tising Typographers of America which shall be enlarged to include representa- 
tion from each of the four zones as designated in the constitution and by-lawa 
of the Advertising TjiJOgraphers of Amerix^a, and which is designated as the 
National Code Authority for this Industry. 

(b) All proceedings of the National Code Authority shall be in conformity 
with the constitution and by-laws of the Advertising Typographers of America 
with the provisions of this Code. 

(c) For the proper equitable administration of this Code in accordance with 
the number of plants in the Industry, and their geographic location, and for the 
establishment of uniform practices as may be required in accordance with con- 
ditions in each district, the United States of America shall be divided into four 
zones as follows : 

Zone No. 1. Eastern Division, Headquarters, New York : Connecticut, Dela- 
ware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, 
New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, West 
Virginia. 

Zone No. 2. Western Division, Headquarters, Chicago : Illinois, Indiana, Iowa, 
Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, 
Ohio, South Dakota, Wisconsin. 

Zone No. 3. Pacific Division, Headquarters, Los Angeles : California, Colorado, 
Idaho, Montana, Nevada, Oregon, Utah, Washington, Wyoming. 

Zone No. 4. Southern Division, Headquarters, Dallas : Alabama, Arizona, 
Arkansas, Florida, Georgia, Louisiana, Mississippi, New Mexico, North Caro- 
lina, Oklahoma, South Carolina, Tennessee, Texas. 

MAINTENANCE OF FAIR COMPETITION 

(d) Chance Orders. — Advertising typography shall not be solicited or pro« 
duced on a chance or speculative basis. 

APPENDIX OF INDUSTRY NO. D-4 

Trade Mounting and Finishing 

The provisions of this Appendix are applicable only to Industry No. D-4. 

administrative provisions 

(a) The administration of this Code for the Trade Mounting and Finishing 
Industry shall be by the National Code Authority for this Industry, consisting 
of seven (7) individuals, two (2) of whom shall be chosen by the Board of 
Directors of the Association of Mounters and Finishers, Inc. from their own 
number, two (2) by tlie Board of Directors of the Lithographers and Printers 
Finishers Association from their own number, and two (2) by the Board of 
Directors of the Graphic Arts Finishing Association from their own number, 
and one (1) of whom shall be elected by the six (6) so chosen. 

(b) All proceedings of the National Code Authority .shall bo in conformity 
with its by-laws, rules and regulations, adopted as provided in Section 3 (g), 
and with the provisions of this Code. 



61 

MAINTENANCE OF FAIR COMPETITION 

(c) The National Code Authority may. subject to the review of the Admin- 
istrator, formulate uniform standaid.s for materials to be used by all or any 
defined group of establishments withlb the Industry, and for any such estab- 
lishment to submit bids or make sales except in accordance with the uniform 
material standards thereby prescribed shall be a violation of this Code. 

APPENDIX OF INDUSTRY NO. D-5 

Tkade Binding and Papek Ruling 

The provisions of this Appendix are applicable only to Industry No. D-5. 

administrative provisions 

(a) The administration of this Code for the Trade Binding and Paper Ruling 
Industry shall be under the jurisdiction of the Book Manufacturers' Institute, 
the Board of Directors of which is designated as the National Code Authority 
for this Industry. 

(b) All proceedings of the National Code Authority shall be in conformity 
with the by-laws, rules and regulations of the Book Manufacturers' Institute 
and with the provisions of this Code. 

maintenance of fair competition 

(c) The terms of credit extended to customers shall be " Net 20 days E. O. M." 
There shall be no discount allowed to any customer for an earlier payment. 

(d) No establishment within the Industry sliall absorb carrying charges for 
any material furnished to the trade binder and/or paper ruler by the customer 
or his authorized agent, such as printed sheets, unprinted paper, jackets, dies, 
plates, etc., and, if carrying charges have not been prepaid, shall make a charge 
for pickup. 

(e) Upon request by one or more unsuccessful bidders, the National Code 
Authority may require the successful bidder to submit to such National Code 
Authority its specification and prices. 

(f) No estal)llshment shall alter, omit, or in any way modify the terms and 
conditions contained in the uniform sales contract form which may be adopted 
by the National Code Authority, and any such alteration, omission, or modifi- 
cation shall be a violation of this Code. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. El 

Advertising Newspapers 

The provisions of this Appendix ai-e applicable only to National Product 
Group No. E-1. 

administrative provisions 

(a) The administrative agency for the Advertising Newspapers National 
Product Group shall be the Board of Trustees of the American Shopping News 
Publishers Association. 

(b) All proceedings of the administrative agency shall be in conformity with 
the provisions of the Code of Reguhitions of the American Shopping Newa 
Publishers Association and with the provisions of this Code. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. E-2 

Bank and Commercial Stationery 

The provisions of this Appendix are applicable only to National Product 
Group No. E-2. 

administrative provisions 

(a) The administrative agency for the Bank and Commercial Stationery 
National Product Group shall be the Board of Directors of the American Insti- 
tute of Bank and Commercial Stationers. 



62 

(b) All proceeding? of tlie administrative agency shall be in conformity 
with the provisions of the constitution and by-laws of the American Institute, 
of Bank and Commercial Stationers and with the provisions of this Code. 

MAINTENANCE OF FAIR COMPETITION 

(c) From the effective date of this Code and until the departmental economic 
hourly cost rates and production standards and cost determination schedules 
shall have been declared as provided in Section 26 (b), no establishment in any 
region shall sell or offer to sell any product listed in an approved and available 
catalog already in general use in such region on any other basis or at a price 
lower than contained in such catalog provided (1) that such catalog shall first 
have been submitted to the Consumers Advisory Board of the National Recovery 
Administration and approved by the Administrator, and (2) that such prohibi- 
tion shall not apply to any individual order exceeding five hundred dollars 
($500) in amount, nor to any combined or contract order exceeding five thousand 
dollars ($5,000) in amount per year. 

(d) After the Administrative Agency of this Group shall have declared 
the costs of any products as provided in Section 26 (d), no establishment shall 
sell or offer to sell any such products at less than such costs, provided that 
any such prohibition shall not apply to any individual order exceeding five 
hundred dollars ($500) in amount nor to any combined or contract order ex- 
ceeding five thousand dollars ($5,000) in amount per year. 

(e) No establishment shall alter, omit, or in any way modify the terms and 
conditions contained in the uniform sales contract form which may be adopted 
by the National Code Authority, and any such alteration, omission, or modi- 
fication shall be a violation of this Code. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. E-3 

DeCALCOMANIA AND TRANSPARENCY 

The provisions of this Appendix are applicable only to National Product 
Group No. E-3. 

ADMINISTEATTVE PROVISIONS 

(a) The administrative agency for the Decalcomania and Transparency 
National Product Group shall be the Director of the Decalcomania Association 
of America. 

(b) All proceedings of the administrative agency shall be in conformity with 
the provisions of the Articles of Association, Rules and Regulations of the 
Decalcomania Association of America and with the provisions of this Code. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. E-4 

Grejeting Cards 

The provisions of this Appendix are applicable only to National Product 
Group No. E-4. 

administrative provisions 

(a) The administrative agency for the Greeting Cards National Product 
Group shall be the Board of Directors of the National Greeting Card Asso- 
ciation. 

(b) All proceedings of the administrative agency shall bo in conformity 
with the provisions of the constitution and by-laws of the National Greeting 
Card Association and of the provisions of this Code. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. B-5 

Labels 

The i)rovisions of this Appendix are applicable only to National Product 
Group No. E-5. 



63 

ADMINISTRATIVE PROVISIONS 

(a) The administrative agency for the Labels National Product Group shall 
be the Board of Directors of the Label Manufacturers Association. 

(b) All proceedings of the administrative agency shall be in conformity 
with the provisions of the by-laws of the Label Manufacturers Association 
and with the provisions of this Code. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. E-6 

Music Printing 

The provisions of this Appendix are applicable only to National Product 
Group No. E-6. 

administbative provisions 

(a) The administrative agency for the Music Printing National Product 
Group shall be the Board of Directors of the National Music Printers and 
Allied Trades Association. 

(b) All proceedings of the administrative agency shall be in conformity with 
tlie provisions of the by-laws of the National Music Printers and Allied Trades 
Association and with the provisions of this Code. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. E-7 

Photo-Lithographing 

The provisions of this Appendix are applicable only to National Product 
Group No. E-7. 

administrative provisions 

(a) The administrative agency for the Photo-Lithographing National Product 
Group shall be the Board of Directors of the National Association of Photo- 
Lithographers. 

(b) All proceedings of the administrative agency shall be In conformity with 
the provisions of the by-laws of the National Association of Photo-Lithographers 
and with the provisions of this Code. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. E-8 

Picture Publishers and Picture Importers 

The provisions of this Appendix are applicable only to National Product 
Group No. E-8. 

administrative provisions 

(a) The administrative agency for the Picture Publishers and Picture Import- 
ers National Product Group shall be the Executive Committee of the Picture 
Publishers and Importers Association. 

(b) All proceedings of the administrative agency shall be in conformity with 
the provisions of the by-laws of the Picture Publishers and Importers Associa- 
tion and with the provisions of this Code. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. E-10 

Posters 

The provisions of this Appendix are applicable only to National Product 
Group No. E-10. 

administrative provisions 

(a) The administrative agency for the Posters National Product Group shall 
be the Executive Committee of the Poster Printers Association of the United 
States and Canada. 



64 

(b) All proceedings of the administrative agency shall be in conformity wltb 
the provisions of the constitution of the Poster Printers Association of the 
United States and Canada and with the provisions of this Code. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. E-12 

Textile and Hosiery Packing Manutactixreks 

The provisions of this Appendix are applicable only to National Product 
Group No. E-12. 

administrative provisions 

(a) The administrative agency for the Textile and Hosiery Packing Manu- 
facturers National Product Group shall be the Executive Board of the National 
Assoiciation of Textile and Hosiery Packing Manufacturers. 

(b) All proceedings of the administrative agency shall be in conformity with 
the provisions of the constitution and by-laws of the National Association of 
Textile and Hosiery Packing Manufacturers and with the provisions of this 
Code. 

MAINTENANCE OF FAIR COMPETITION 

(c) No member of this Product Group shall produce any quantity of packing 
without a duly signed order or contract for said packing from the owner of the 
design or from some responsibly authorized mill. In no case shall there be spec- 
ulative manufacturing of branded packings. 

(d) Overruns shall not be permitted in excess of ten per cent (10%) on orders 
for branded packings and labels for deferred deliveries — neutral labels or pack- 
ings are excepted. 

(e) The National Association of Textile and Hosiery Packing Manufacturers 
shall approve and adopt a uniform contract form in accordan<*e with Paragraph 
(1), Section 27, hereof; thereafter no member of this Product Group shall ac- 
cept an order or contract unless it substantially conforms with said uniform con- 
tract form. 

(f) No member of this Product Group shall accept an order or contract to 
cover deliveries for a period of longer than one year from date of order or 
contract. 

(g) Extension of order or contract beyond the specified period shall be per- 
mitted only when eighty per cent (80%) of the quantity ordered has been with- 
drawn, and then only upon a charge of not less than one per cent (1%) per 
month being made upon the remaining balance. 

(h) Supplemental to Section 26 (d) of this Basic Code, entitled "Selling 
Below Cost Prohibited," such items as box wraps, labels, bands, riders, seals, 
stickers, etc., shall each bear the proper proportion of cost which shall be re- 
flected and itemized in the per-thousand price. Obsolete or discontinued pack- 
ings, only, are excepted from this clause. 

(i) No member of this Product Group shall accept an order or contract from 
any person or organization for a quantity of packing or labels wherein the 
material shall be billed by the packing manufacturer at any other price than 
that covered for each item in the contract. 

(J) Supplemental to Section 27 (e) of this Basic Code, the sole exception to 
rebates and refunds in any form may be that where a brand owner has paid 
for packing or labels remaining in stock of the manufacturer, lie shall be en- 
titled to reimbursement for the amount due when payments are made by other 
than him against withdrawals. 

(k) Terms. — 

(1) No member of this Product Group shall soil its products on any other 
terms than net cash ten diiys B. O. M. or thirty days net. 

(2) No sucli member shall ship other than f. o. b. manufacturing point. 

(3) Any such member may allow freight if and only when included In 
cost. 

(1) Originals. — 

(1) No mombor of this Product Group shall make engravings or originals 
(excepting skotchos), or submit proofs of a dcsipn to a prospect or cus- 
tomer under any cinumstancos, unh ss the making of engravings or origi- 
nals be covered by a delinite order fium the prospect or customer. In case 



65 

of such order a reasonable charge shall be made for the engravings or 
originals, and such charge shall not be at less than cost. 

(2) This charge may be remitted should order for quantity of packing 
be placed within 120 days from date of order for proofs. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. E-13 

TlCKETT AND COUPON 

The provisions of this Appendix are applicable only to National Product 
Group No. E-13. 

ADMINISTRATIVE PROVISIONS 

(a) The administrative agency for the Ticket and Coupon National Product 
Group shall be the Ticket and Coupon Manufacturers Council. 

(b) All proceedings of the administrative agency shall be in conformity with 
the provisions of the by-laws of the Ticket and Coupon Manufacturers Council. 

MAINTENANCE OF FAIR COMPETITION 

(c) No establishment shall alter, omit, or in any way modify the terms 
and conditions contained in the uniform sales contract form which may be 
adopted by the National Code Authority, or National Product Group, and any 
Buch alteration, omission, or modification shall be a violation of this Code. 

(d) No member of this Product Group shall print the imprint of non-manu- 
facturers on any class or type of tickets, checks or coupons except when such 
non-manufacturer is a recognized afliliate or subsidiary of a ticket, check or 
coupon manufacturer. 

(e) The following fair trade practices are applicable only to members of 
the Licensed Railroad Ticket Manufacturers Association : 

(1) No member shall sell products of the industry to persons not con- 
sumers of such products and/or not manufacturers of such products. 

(2) Terms: 

(a) Net 30 days, no cash discount. 

(b) All sales shall be made f.o.b. point of shipment. 

(f ) The following fair trade practices are applicable only to members of the 
Electric Railway and Bus Ticket Manufacturers Association : 

(1) No member shall sell products of the industry to persons not con- 
sumers of such products and/or not manufacturers of such products. 

(2) Terms: 

(a) Net 30 days, no cash discount. 

(b) All sales shall be made f.o.b. point of shipment. 

(g) The following fair trade practices are applicable only to the members 
of the Amusement Ticket Manufacturers Association : 

(1) All circuits consisting of a group of theaters, under one general 
management, with a total seating capacity of not less than ten thousand, 
shall be entitled to wholesale prices. 

(2) Members shall recognize as a dealer, jobber or distributor only a 
definitely established business organization that sells tickets, checks, cou- 
pons, and other supplies to individual theatres, all of whose orders in 
general are billed by the manufacturer to the dealer, jobber or distributor. 

(h) The following fair trade practices are applicable only to the members 
of the Clothing Ticket and Numbered Production Systems Manufacturers 
Association : 

Terms of sale and delivery : 

(1) To customers direct: Thirty days net, no cash discount. 

(2) Prices shall be f.o.b. point of shipment. 

(1) The following fair trade practices are applicable only to members of the 
Restaurant Check Manufacturers Association : 

(1) The standard sizes of paper used for guest checks shall be. Group 
No. 1, maximum size 13% square inches ; Group No. 2, maximum size, 
18% square inches ; Group No. 3, maximum size, 24 square inches. 

(2) Members shall recognize as a dealer, jobber or dstributor only a 
definitely established business organization that sells tickets, checks, 
coupons, etc., to restaurants, cafes, hotels, etc., in general, all of whose 
orders are billed by the manufacturer to the dealer, jobber or distributor. 



66 

(3) The advertisement of a jobber, dealer or distributor of restaurant 
checks shall only appear on such checks provided the name of the manu- 
facturer also appears on the checks and further provided that all res- 
taurant checks so printed shall be classified as specially printed 
restaurant checks. 

(4) Maximum credit terms shall be: 

(a) Open accounts: Two per cent 10 days; 30 days net. 

(b) 0. O. D. accounts: Net, no discount. 

(c) Money-with-order accounts : Three per cent discounts. 

(5) Members may assume delivery charges on shipments to users within 
a distance of twenty-five miles of corporate limits of any city in which a 
recognized restaurant check manufacturer's plant is located. Members 
may allow users located outside of such area the difference in the freight 
charges from point of shipment and what such charges would have been 
If shipment had been made from the nearest point at which a recognized 
restaurant check manufactui-er's plant is located. 

(J) The following fair trade practices are applicable only to members of 
the Coupon Book Manufacturers Association : 
Terms of sale and delivery: 

(1) To customers direct: Two per cent cash discount for payment with- 
in 10 days from date of shipment, 30 days net. 

(2) Parcel post or express charges shall not be assumed by manufac- 
turer. 

(k) The following fair trade practices are applicable only to the members 
of the Thrift Systems Distributors Association: 

(1) No member of this industry shall appropriate or imitate in whole 
or in part, any exclusive plans, products, ideas, services, forms, designs 
or systems originated or developed by a competitor. 

APPENDIX OF NATIONAL PRODUCT GROUP NO. E-14 

Dry Transfer Manufacturers 

The provisions of this Appendix are applicable only to National Product 
Group No. E-14. 

ADMINISTRATIVE PROVISIONS 

(a) The administrative agency for the Dry Transfer Manufacturers National 
Product Group shall be the Executive Committee of the National Association 
of Dry Transfer Manufacturers. 

(b) All proceedings of the administrative agency shall be in conformity with 
the provisions of tlie constitution and by-laws of the National Association of 
Dry Transfer Manufacturers and with the provisions of this Code. 

MAINTENANCE OF FAIR COMPETITION 

(c) Terms. — No establishment shall sell its products, except embroidery 
designs, on any but the uniform terras adopted by the Association, which are, 
namely, f.o.b. Factory, Net thirty days (30), no discount for anticipation, or 
on terms of net cash. 

(d) minimum Quantities. — 

(1) No establishment shall accept for manufacture an order of less than 
5,000 transfers of a design. 

(2) No establishment shall ship transfers from manufactured stock in 
quantities of less than 1,000. 

(e) Special Packing. — No establislmient shall accept for manufacture an 
order in other than the established uniform methods, without a special charge 
for tliis special pncking being made. These variations from uniform methods 
shall consist of sheeting of transfers and for rolls containing less than 2,500 
transfers. 

(f) Order Forms. — No estai)Iisliinont shall use an order form for the taking 
of orders on a deferred delivery l)a.sis, on any but tlie uniform order forms as 
aceer)te(j ;ind adojiled I)y tlie group. 

(g) Orders. — No estahiis'lniuMit shall i)ro(lnc<! for stock any quantity of 
transfei's without a duly si.i,'ne(l order, or coiiirnct, for said transfers from the 
owner of the design or froiii .'^mie o'her I'esiinnsiblo party or mill. It is further 



67 

stipulated that under no circumstances are owners' designs to be stocked by 
transfer manufacturers on a speculative basis. This, however, does not include 
the transfer manufacturer's own stock of descriptive transfers. 

(h) Blanket Contracts. — No establishment shall accept a blanket contract, 
placed to protect customers on a minimum price basis, unless same shall be 
written and subject to the order form prescribed by the group. All such con- 
tracts shall be subject to all other fair practice methods herein contained. No 
blanket contract shall be written for a quantity of less than 1,000,000 transfers, 
to be consumed ^vlthin a period of twelve months from date of contract, and 
only then when customer agrees to accept an invoice at the end of the year 
for an additional charge representing the difference, if any, in price on the 
quantity consumed at such price schedule and the price contained lu the 
contract. 

(i) Contract Enforcement. — No establishment shall continue to carry in their 
stock any quantity of transfers on order or contract beyond a period of one 
year from the date of order unless a storage charge of 1% per month on the 
remaining balance be made. 

APPENDEX OF NATIONAL PRODUCT GROUP NO. E-15 

Church Envelope Systems 

The provisions of this Appendix are applicable only to National Products 
Group No. E-15. 

ADMINISTBATI\"E PBOVISIONS 

(a) The administrative agency for the Church Envelope Systems National 
Product Group shall be the Executive Committee of the Association of Pro- 
ducers of Church Envelope Systems. 

(b) All proceedings of the administrative agency shall be in conformity 
with the provisions of the constitution and by-laws of the Association of Pro- 
ducers of Church Envelope Systems. 

APPENDIX OF NATIONAL PRODUCTS GROUP NO. E-16 

Law Pbintebs 

The provisions of this Appendix are applicable only to National Products 
Group No. E-16. 

ADMINISTRATIVE PBOVISIONS 

(a) The administrative agency for the Law Printing National Products 
Group shall be the National Executive Committee of the National Law Printers 
Institute. 

(b) All proceedings of the Administrative Agency shall be in conformity 
with the provisions of the constitution and by-laws of the National Law Printers 
Institute and with the provisions of this Code. 

MAINTENANCE OF FAIR COMPETITION 

(c) No establishment shall quote a lump sum bid on law work, based upon 
a guess or estimate as to volume of the finished work, but will be required to 
quote a price per page of standard measurement, plus a rate per hour for 
author's alterations, for a particular number of copies, plus specific charges 
per unit for blank pages, extra proofs, reprints, Inserts and other extra charges 
above standards to which page rates apply. 

(d) No establishment shall hold standing matter beyond thirty days follow- 
ing end of month during which a job Is completed, without making a monthly 
charge to the customer in accordance with methods Incorporated in the cost 
system approved for this industry. 

(e) No establishment shall deliver any quantity of copies beyond that speci- 
fied by the original order without making a proper charge for additional copies. 

(f) No establishment shall furnish a higher grade of paper or materials than 
is prescribed as standard for law work without making a proper additional 
cliarge therefor. 



68 

APPENDIX OF NATIONAL PRODUCTS GROUP NO. E-17 

Map Publishers 

The provisions of this Appendix are applicable only to National Products 
Group No. E-17. 

ADMINISTKATIVE PROVISIONS 

(a) The administrative agency for the Map Publishers National Group shall 
be the Board of Directors of the Map Publishers Association of the United 
States. 

(b) All proceedings of the Administrative Agency shall be in conformity with 
the provisions of the constitution of the Map Publishers Association of the 
United States. 

o 



Approved Code No. 288 

CODE OF FAIR COMPETITION 

FOR THE 

DAILY NEWSPAPER PUBLISHING BUSINESS 

As Approved on February 17, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Daily Newspaper Publishing Business, 
and hearings having been held thereon and the Administrator having 
rendered his report containing an analysis of the said code of fair 
competition together with his recommendations and findings with 
respect thereto, and the Administrator having found that the said 
code of fair competition complies in all respects with the pertinent 
provisions of Title I of said Act and that the requirements of 
clauses (1) and (2) of subsection (a) of Section 3 of the said Act 
have been met : 

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

(1) The determination of hours and wages for news department 
workers shall be made not later than 60 days hence. 

(2) The government members of the Code Authority shall give 
particular attention to the provisions authorizing minors to deliver 
and sell newspapers and shall report to the President not later than 
60 days hence. 

(3) Insofar as Article VII is not required by the Act, it is pure 
surplusage. Wliile it has no meaning it is permitted to ^tand merely 

29047° 296-106 34 (69) 



70 

because it has been requested and because it could have no such 
legal effect as would bar its inclusion. Of course a man does not 
consent to what he does not consent to. But if the President should 
find it nece,ssary to modify tliis Code, the circumstance that the 
modification was not consented to would not affect whatever obliga- 
tions the non-consentor would have under Section 3 (d) of the 
National Industrial Recovery Act. 

Of course, also, nobody waives any constitutional rights by assent- 
ing to a Code. The recitation of the freedom oi the press clause in 
the Code has no more place here than would the recitation of the 
whole Constitution or of the Ten Commandments. The freedom 
guaranteed by the Constitution ig freedom of expression and that 
will be scrupulously respected — but it is not freedom to work chil- 
dren, or do business in a fire trap or violate the laws against obscenity, 
libel and lewdness. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

A dministrator. 

The White House, 

February 17, 19S4^ 



The White HottsE, 
Washington^ February 17^ IDSi. 
General Hugh S. Johnson, 

National Recovery Administrator, 

National Recovery Administration, 

Washington, D.G. 
My Dear General Johnson : 

In addition to the conditions in the Executive Order approving the 
Code of Fair Competition for the Daily Newspaper Publishing Busi- 
ness, I wish to make the following observations : 

(a) "I am not satisfied with the Child Labor Provisions, A spe- 
cial report and recommendations in regard to the carrying out of the 
Provisions will be made to me at the end of 60 days. 

(b) The publishers of newspapers having a circulation of seventy- 
five thousand or more in cities of seven hundred and fifty thousand 
population or more are requested to install a five-day, forty-hour- 
week for their staff of reporters and writers with the purpose of giv- 
ing employment to additional men and women in this field. A re- 
port on this will be made at the end of sixty days," 

Sincerely, 

FKANKLIN D. ROOSEVELT. 

(71) 



LETTER OF TRANSMITTAL 

The President, 

The White House. 

Sir : During the formulation of A Code of Fair Competition for 
the daily newspapers of the United States one issue engrossed 
public attention : Freedom of the Press. In the conferences be- 
tween the Administrator and the immediate proponents of the 
Code — that is, the Board of Directors of the American Newspaper 
Publishers' Association and the representatives of the regional press 
associations affiliated with the American Newspaper Publishers' 
Association — major attention was devoted to the hours and wage 
provisions of the Code ; to the revision of the Child Labor section and 
to the problem of editorial workers. The proponents knew that so 
far as the National Recovery Administration was concerned there 
was no issue in respect of the Freedom of the Press and that the 
controversy had been stimulated almost entirely by those who had 
onl}^ second- or third-hand information of the progress of the 
negotiations. The issue has assumed such proportions, however, 
in the minds of certain newspaper publishers and of a certain 
section of the public that it seems desirable in this, my Report to 
you, to set forth the bare facts. 

Hearings on the Newspaper Code were held on September 22nd 
and 23rd. The Code, as put down for public hearing, contained a 
Section XI which read as follows : 

" In submitting or subscribing to this code, the publishers do not 
thereby agree to accept or to comply with any other requirements 
than those herein contained, or waive any right to object to the im- 
position of any further or different requirements, or waive any con- 
stitutional rights or consent to the im|)osition of any requirements 
that might restrict or interfere witli the constitutional guarantee 
of the Freedom of the Press.'' 

Tliis reservation which it was proposed to include in a code, had 
already been made by the newspaper publishers when, on August IG, 
1933, they secured approval of the Administrator for the substitu- 
tion of cei'tain provisions of their proposed code for the relevant 
provisions of the Piesidcnt's Reemployment Agreement. The 
National Reco\ery Administration then indicat(Ml that it had no ob- 
jections to th(^ newspapers assei-ting the constitutional rights of a 
free press. 

At the public hearings, (|U('sti(>ns to counsel foi- the Code's pro- 
p(m('nts sought to ascertain whether the Freedom of the Press reser- 
vation was intended to intinuitc^ that because of the First Amend- 
ment newspajM'rs might be; free of any obligation under the Act to 
submit a code. No newspaper has ever ])leaded a State constitu- 
tional guarantee of Freedom of the ]*ress as giving it immunity 
under Stiite Child Labor Laws or Workmen's Compensation Laws. 

(71^) 



73 

It was suggested also at the public hearings that legally the reserva- 
tion was surplusage; that by consenting to a code on hours and 
wages the newspapers could not waive any rights under the First 
Amendment. During the public hearings, therefore, the Admin- 
istration expressed no opinion on the Freedom of the Press reserva- 
tion except insofar as an opinion might be inferred from the in- 
terrogations referred to above. (Stenographic record, Newspaper 
Code public hearing, page 1222 — Graphic Arts Code public hearing, 
pp. 740-741). 

In the subsequent conferences between the proponents of the Code 
and representatives of the Administrator — and there have been many 
of these conferences — the only suggestions that have been made in 
respect of the original Section XI of the Newspaper Code were 
that the declaration could more properly appear in the preamble 
of the Code or in connection w^ith Section 10 (b) of the Act, instead 
of in its original resting place, between two irrelevant sections; 
and that the language might be limited to constitutional rights 
under the First Amendment and not extended to cover all constitu- 
tional rights. These suggestions were not pressed. The Code as 
recommended contains the reservation in connection with Section 
10 (b) of the Act. The language goes beyond the liberties protected 
by the First Amendment but this, it seems to me, is not important. 
The newspapers have not asked for any special protection beyond 
that guaranteed them by the First Amendment; and if — as is not 
anticipated — the language ever has to be construed, this fact will 
be kept in mind. I say " not anticipated " because legally the 
language is unnecessary. Rights under the First Amendment can- 
not be waived by submission to a code in accordance with the pro- 
visions of the National Industrial Recovery Act. From these mole- 
hills of fact a mountain of controversy has been made. 

It was freely charged that the Administration would not consent 
to the inclusion in the Code of the provision on the Freedom of the 
Press; that the licensing of newspapers was contemplated and that 
they could look forward to administrative control similar to that 
which is exercised over broadcasting. Only a word of comment is 
necessary in respect of these charges. 

One pronouncement — disseminated widely by certain newspapers — 
was to the effect that the Freedom of the Press and even the First 
Amendment itself were " in the balance " because on the cover of 
the Code as published by the Government Printing Office there ap- 
peared the statement : " The Code for the American Newspaper Pub- 
lishers Industry in its present form merely reflects the proposal of 
the above-mentioned industry, and none of the provisions contained 
therein are to be regarded as having received the approval of the 
National Industrial Recovery Administration as applying to this 
industry." Since the Code included Section XI, the charge was that 
the Administration w^as in the position of withholding its assent to 
the inclusion of Section XI and was imperilling the Freedom of the 
Press. But the statement quoted appears on the cover of every code 
printed by the Government Printing Office and is designed to indicate 
that in its governmentally published form it is only a proposed code 
and not an approved code. The statement on the Government Print- 
ing Office edition of the Code applies to Section 7 (a) of the Act, 



74 

which must be textually included in every code, so if this reasoning is 
good the statement puts the Administration in the position of having 
the inclusion of Section 7 (a) always "in the balance". Of course 
such " reasoning " is nonsensical. 

As for the fears as to the licensing of the press, no expressor of 
the fears ever cited any statement or act by any responsible gov- 
ernment official which contemplated the use of the licensing power. 
Those who talk about licensing completely ignore the fact that the 
licensing provision of the Act is in a section entirely apart from 
the section under which codes are presented; that the powers of 
the President are carefully circumscribed; that he may exercise 
them only if he finds that " destructive wage or price cutting or other 
activities contrary to the policy of ■' the Kecovery Act are being 
practiced in any trade or mdustr}'^; and that he must give public 
notice and hearing before he can act. 

It is hardly necessary to remark that the radio analogy is singu- 
larly^ inapposite. Broadcasting without some government supervi- 
sion is hardly conceivable. A newspaper can be printed in any form 
that the proprietor desires without preventing the publication of 
another newspaper. Unless broadcasters are limited to different 
wave lengths they interfere with each other. A newspaper cannot 
pi its competitor's type, but without government control of wave 
lengths we would have symphonies, bedtime stories, crooners, and 
astrological lore all mixed up in an unintelligible melee of sounds. 
In the light of this fundamental difference, newspapers as news- 
papers ought not to think that so long as free government lasts pub- 
lic control of broadcasting is any precedent for public supervision 
of publishing. 

So much for the straw-man issue of Freedom of the Press. The 
Code as recommended for approval reserves to newspapers all of 
their rights under the First Amendment. The reservation is in the 
terms of Section XI of the Code as put down for public hearing. 
The Freedom of the Press is guaranteed in the Code. Section 4 (b) 
of the Act has no connection with this Code. If newspapers fear 
the mere existence of Section 4 (b) in the Act, they should discuss 
their fears with the President or with Congress and not with the 
National Recovery Administration. 

WAOKS AM) HOURS 

In respect of wages and liours the Newspaper Code raised difficult 
questions. The ])osition of tlie newspaper is somewliat unique. Un- 
less k)cated in the same areas newspapei's do not compete with each 
other. That may be said of retail establishments but retail estab- 
lishments are vitally concerned b}^ wage provisions which do no 
more than fix a baie niinimum. So many of the employees of news- 
papers are highl}' skilled that a minimum wage applies to only a 
small percent of the manufacturing employees. 

To find any formula which would inciease Avages for the work- 
ers above i]ie niinimiini proved wellnigh impossible. A number of 
publishers whose collective agreements were about to expire or who 
had sufficifMit i-csources to do tlieir bit under the National Industrial 
Recovery Act were ix'i-fectly billing to accept the formula of 10% 



Vo 

increase on 1933 rates, provided that the increase should not go 
above the prevailing hourly rates in 1929. For such publishers this 
formula was perfectly satisfactory. In respect of other publishers, 
however, it was apparent that the application of such a formula 
would mean either : 

(a) that the paper would have to reduce the number of columns 
in a daily issue so that unemployment would be increased, or 

(b) that the paper would have to plead its financial inability to 
consent to such an increase. 

So far as the public is concerned, the newspapers of the country 
have been put in a false position. The public has generally an idea 
that newspapers are large corporate enterprises with surplus or 
resources which can be drawn upon during the present emergency. 
As a matter of fact, however, 1,331 newspapers have circulations 
below 10,000 copies per day; 283 have circulations between 10,000 
and 25,000; 131 have circulations between 25,000 and 50,000; and 
only 145 have circulations above 50,000 per day. The application 
of any formula for wage increases to newspapers of such vastly 
different positions in respect of finances and numbers of employees 
would work great hardship in certain cases and be too lenient in 
other cases. 

This holds true of hours as well. Severe unemployment among 
printers exists in certain sections of the country. In other sec- 
tions of the country there is less unemployment. Newspapers with 
large staffs of manufacturing employees can rather readily adjust 
shifts so as to share available positions among a number of workers 
larger than the number of available positions. A small newspaper, 
however, where the editor is a substitute pressman, the compositor 
solicits advertising and the society reporter collects bills, would ha' e 
difficulty in doing much to spread employment. 

The proponents of the Code proposed a flat forty-hour week. That 
obviously would do nothing to relieve unemployment in the big cen- 
ters Avhere newspaper employees are now working an average of less 
than forty hours. On the other hand, with respect to certain small 
papers, a rigid maximum of forty hours would impose too great 
hardships. 

The compromise arrived at is a basic week of forty hours with 
the proviso that in certain localities more hours can be worked and 
that in other localities fewer hours shall be worked in order to 
spread employment. 

NEWSPAPER INDUSTRIAL BOARD 

It is anticipated that by reason of the provisions of the Code 
" that existing hourly differentials above the minimum shall be main- 
tained " and the maximum hours may vary, labor controversies will 
arise. To deal with these controversies the Code sets up a News- 
paper Industrial Board consisting of four publisher members to be 
designated by the Code Authority, and four members representing 
the employees, to be selected by the Administrator. These eight shall 
select a permanent panel of five impartial chairmen, from which 
panel, in the event of a deadlock on any question, a ninth member 
of the board shall be selected by lot. He shall act as chairman and 

2!>047 " 296-106 34 2 



76 

cast the deciding vote. Many ne-wspapers in the United States have 
loi^ been accustomed to impartial machinery for the settlement of 
labor disputes. This machinery has been both local and national. 
The Code makes provision for the functioning of any local ma- 
chinery of conference and gives the Newspaper Industrial Board 
jurisdiction as an appellate body in case the local machinery is 
unable to effect the adjustment. 

CHILD LABOR 

The (juestion of newsboys was exhaustively discussed at the public 
hearing and in briefs filed with the Administrator after the conclu- 
sion of the public hearing. Here again by reason of the different 
nature of the problem in different places of publication, it Avas found 
difficult to formulate a provision which Avould eliminate admitted 
evils in the large cities and not impose undue hardships in the smaller 
centers of ]Kiblication. It is one thing, for example, for boys under 
sixteen to sell ])apers on the streets of Chicago and New York at 
night. It is quite another matter for boys to get bundles of papers 
at a railroad station in a small city and to deliver them before school 
begins. 

The provision qualifying tlie Child Labor section of the Code pro- 
hibits the employment of any persons under sixteen years of age if 
such employment would impair health or interfere with the hours 
of day school. Subject to this general ])roviso there is no limitation 
on the delivery of newspapers. AVith respect to the selling of new's- 
papers, no i)erson under sixteen may be employed lietween 7 P.M. 
and 7 A.M. from October 1 to March ;^1, or between 8 P.INI. and 
7 A.M. from April 1 to September 30. This provision, in connection 
with State laws, Avill, it is believed, greatly reduce the evils of street 
selling. It should be pointed out, ]iowe\'er, that such sti-eet selling 
wnll not be covered by this Code. INIany minors who sell newspapers 
are employed by news agents, or distributors, who will not be bound 
by the Code's provisions. 

EDITORLU, WORKERS 

Sinjilar difficulties prevented the formulaticm of any general rule 
limiting the hours of news department em]3loyees. Guilds of news- 
pajxT writers formed in various sections of the country were repre- 
sented at tlie jjublic hearings and have api)eaied in several of the 
conferences held after the conclusion of these hearings. Some of the 
requests of the news writers — for example, for notice of discharge; 
for vacations, etc. — Avere obviously requests that should be made 
through collective bargaining or directly to individual employers. 
The newspaper guilds will doubtless engage in collective bargaining 
and it is a matter of record that many newspapers, either under 
the Pi-esident's Reemployment Agi'eement or indejiendently thereof, 
have ali'eady limited the houi's of editorial workeivs. In some cases 
there is a fi\-e-day week with no limitation on the maximum number 
of hours to be worked per day. In other cases, there is a limitation 
to forty houi-s per week as the basic week and time in excess of forty 
hours— which is frequently necessary by reason of the character of 
news gathering — is cumulated and compensated for by time off. 



77 

The American Xewspaper Publishers' Association has a labor de- 
partment which has adequate data on hours and wages of manu- 
facturing employees. Xo data are available on the hours and wages 
of editorial employees. During one of the conferences with the 
Administrator several weeks ago the American Newspaper Pub- 
lishers' xA.ssociation Board decided to collect such data. A ques- 
tionnaire was, therefore, sent out to all newspapers in the United 
States. Replies are coming in and the Code provides that the Code 
Authoritj^ say, on the basis of this information. " determine what 
constitutes reasonable hours and wages for news-department workers, 
and, subject to the approval of the Administrator, to incorporate 
its findings in the provisions of this Code.'' It is expected that such 
a report Avill be made promptly. 

COMMEHCIAL FKINTIXO 

Man}' daily newspapers o])erate commercial printing establish- 
ments or sell electrotype and photoengraving plates. Such commer- 
cial activities of a newspaper properly come under a Graphic Arts 
Code. Whatever hours and wage provisions are adopted for the 
Graphir Arts Industries will cover the graphic-arts activities of 
newspaper proprietors. The Newspaper Code authorizes the News- 
paper Code Authority '' to coordinate the administration of this Code 
Avith such other code or codes, if an}', as may affect the business of 
publishers assenting to this Code,*' but specifically provides that 
publishers " who are also engaged in the selling of printing, photo- 
engraving, or other related products to others than newspapers are 
bound by the provisions of this Code only insofar as their operations 
are concerned with the business of publishing newspapers." It may 
be noted here that weekly newspapers, most of which have com- 
mercial printing establishments, will come under a Graphic Arts 
Code even in respect of their neAvs})aper publishing. 

• TIIK COnE AS RECOMMENDED 

The Code as recommended may be summarized as folloAvs: 

Article I states the purposes of the Code. 

Article II sets forth various definitions. 

Article III provides a standard work week of forty hours, which 
is subject to increase or decrease as explained above. 

Article IV sets minimum wage scales. 

Article Y limits the employment of persons under sixteen years of 
age in delivering or selling newspapers, quotes Section 7 (a) of the 
Act, and permits publishers in areas where there are " abnormal con- 
ditions of business distress or where there is an acute shortage of 
labor " which would " create great and unavoidable hardship " to 
petition for relief. 

Article VI constitutes a Code Authority, gives it certain powers, 
and sets up a Newspaper Industrial Board. 

Article VII reserves the President's right to cancel or modify any 
order approving the Code (Section 10 (b) of the Act) ; reserves to 
the publishers their constitutional rights, and makes a pronounce- 



78 

ment against any "pallid bust of Pallas" — in other words, it declares 
against any demolition of that great palladium of liberty — Freedom 
of the Press. 

Article VIII fixes the effective date of the Code. . 

FINDINGS 

The Administrator finds that : 

(a) The Code complies in all respects with the pertinent provi- 
sions of Title I of the Act, including without limitation subsection 
(a) of Section 7 and subsection (b) of Section 10 thereof; and that 

(b) The American Newspaper Publishers' Association imposes no 
inequitable restrictions on admission to membership therein and is 
truly representative of the Daily Newspaper Publishing Business; 
and that 

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

I recommend that the Code be approved. 
Respectfully. 

Hugh S. JoHNsoiir, 

Administrator. 
February 16, 1934. 



CODE OF FAIR COMPETITION 

FOB THE 

DAILY NEWSPAPER PUBLISHING BUSINESS 

Article I — Purpose 

To effect the policies of the National Industrial Recovery Act, the 
following provisions are submitted as a code for daily newspapers, 
and upon approval by the President shall be the standard for daily 
newspapers subscribing or assenting thereto. 

Article II — Definitions 

Section 1. The terms '' daily newspapers " and '' newspapers " as 
used herein shall include all newspapers published daily and/or 
Sunday. The term " newspaper publishing " is defined to mean the 
publishing of such newspapers. The term " publishers '' shall in- 
clude persons actually engaged in the publishing of such newspapers, 
whether individuals, partnerships, associations, trusts, or corpora- 
tions. 

Sec. 2. The terms " President ", "Act ", and "Administrator ", as 
used herein, shall mean, respectively, the President of the United 
States, the National Industrial Recovery Act. and the Administrator 
of Title I of said Act. 

Sec. 3. The term " employee ", as used herein, includes anyone 
engaged on a newspaper in any capacity receiving compensation for 
his services. 

Sec. 4. The term " employer "' as used herein, includes anyone by 
whom such emplo^'ee is compensated or employed. 

Sec. 5. The term " Code Authority " means the administrative 
body provided for in Article VI of this Code. 

Sec. 6. Population for the purpose of this Code shall be deter- 
mined by reference to the latest Federal Census. 

Article III — Hours 

Section 1. Publishers shall not work an}^ accounting, clerical, of- 
fice, service, or sales employee (except outside salesmen, representa- 
tives, drivers and circulation men) in any office or department for 
more than 40 hours per week in any city of over 50,000 population: 
nor more than 44 hours per week in any city of between 25,000 and 
50,000 population; nor more than 48 hours per week in any city or 
town of less than 25,000 population; provided that in emergencies 
additional hours may be worked if compensated by an equivalent 

(79) 



80 

amount of time off. (These excepted employees, other than outside 
salesmen, shall not be in excess of 10 percent of the total employees 
of any establishment.) 

The Code Authority is authorized to secure the necessary data and 
to determine the maximum hours and minimum wages for news de- 
partment workers, and, subject to the approval of the Administrator, 
to incorporate its findings in the provisions of this Code. Until such 
time as its findings are made a part of this Code, present conditions 
•shall be maintained. 

The provisions of this section shall not apply to professional per- 
sons employed in their professions, to persons employed in a man- 
agerial or personal capacity, employees on emergency, maintenance, 
and repair work (including porters, janitors, engineers, firemen, and 
watchmen), nor to emploj^ees in special cases where restrictions of 
hours of highly skilled workers on continued processes would una- 
voidably reduce production, nor in special cases of emergency; pro- 
vided, that in any such special cases the prevailing rate for overtime 
in that department shall be paid for hours of work in excess of the 
maximum. 

Sec. 2. The maximum unit of hours to constitute a day's or night's 
work for mechanical employees shall be 8 continuous hours, exclusive 
of lunch time. 

Except as herein otherwise provided, the standard work week 
shall be 40 hours. 

The foregoing maximum hours of work shall not be construed as 
a minimum either for a day or a week, and if at any time in any 
locality newspaper mechanics of a given trade, through their chosen 
representatives, express by written request to their employer or em- 
ployers a desire to share available work with bona fide resident 
unemployed competent newspaper mechanics in their particular 
trade or craft, the number of hours of work may be adjusted by 
mutual agreement. 

If local agreement proves impossible within 15 days, the question 
may be appealed by either party to a local Fact Finding Board made 
up of two representatives of the employer or employers and two 
representatives of the employees. 

The local board as thus formed shall endeavor to agree upon the 
fact with regard to the number of resident unemployed competent 
newspaper mechanics in the locality for the purpose of reducing the 
number of such unemployed newsj^aper mechanics so far as is pos- 
sible without undue hardship to either the employer or employers or 
his or their employees. 

If a majority agivement cannot be arrived at, the four members 
shall choose a i\hh and impartial member of the board who shall act 
as chairman. 

The board sliall ])r<)cpod diligently to complete its findings of fact 
and make its recommendations. 

Should either the employer or employers or his or their employees 
disagree with the findings and reconnnendations of the local board, 
appeal may be made to the Newspaper Industrial Board provided 
for in this "Code, which, after notice and opportunity for the parties 



81 

to be heard, shall make a finding which shall be binding upon all 
parties of interest. 

These provisions as to sharing of work .shall not apply to any 
newspaper having ten or less journej^men mechanical department 
emplo3^ees. 

If in any locality there are not available competent journeymen 
newspaper mechanics to permit the operation of any newspaper in 
such locality on a 40-hour week, then the work week may be extended 
to not more than six times the maximum unit of hours het^inbefore 
set forth as constituting a normal day's or night's work, without 
overtime ; provided that in any locality where less than 8 hours nor- 
mally constitutes a day's or night's work, then the work week may 
not be extended beyond six times that unit of hours unless overtime 
be paid. 

A publisher mny divide an employee's work week into as many as 
six .shifts, each of such length, not exceeding eight hours, as the 
publisher may determine, and shall have the right to designate the 
shifts, schedule of hours, and starting time of each emplo3'ee. Over- 
time shall be worked when necessary.^ 

Article IV — Wages 

Section 1. No full-time employee in any of the classes mentioned 
in Article III, Section 1, shall be paid less than $15.00 per week in 
any city of over 500,000 population or in the immediate trad«i area 
of such city ; nor less than $14.00 per week in any city of between 
250,000 and 500,000 or in the immediate trade area of such city; nor 
less than $13.00 per week in any city of between 50,000 and 250,000 
or in the immediate trade area of such city; nor less than $12.00 per 
week in any city of between 25,000 and 50,000 population ; nor less 
than $11.00 per week in any city or town of less than 25,000 popula- 
tion; provided, that office boys and girls, and learners or appren- 
tices, not to exceed ten percent of the total employees of any estab- 
lishment, are to be paid not less than TO percent of the foregoing 
scale. Part-time employees shall receive pro rata rates of the fore- 
going scales. 

Sec. 2. The minimum rate for mechanical employees, other than 
apprentices and learners as hereinbefore provided for, shall be 40 
cents per hour, with the understanding that existing hourly rate 
differentials above said minimum shall be maintained and that 
payments for work on a piece-work basis will maintain their cus- 
tomary relationship to the payments on a time basis. 

Overtime shall be paid for at the rates prevailing in the 
department. 

Sec. 3. The provisions of this article shall not apply to persons 
mentioned in Article V, Section 1. 

Sec. 4. A person whose earning capacity is limited because of age 
or physical handicap maj^ be employed at a wage not more than 
20% below the mininmm fixed in this Code. Each employer shall' 
file with the Code Authority a list of all such persons employed by 
liini.^ 



^ See par. 1 of Executive order approving tliis Code. 



82 

Article V — General Labor Provisions 

Section 1. Publishers shall not employ persons under 16 years of 
age except those who are able, without impairment of health or 
interference with hours of day school, 

(a) to deliver newspapers; 

(b) to sell newspapers, provided that no such person shall be 
employed in street sales between 7 P.M. and 7 A.M. from October 
1st to March 31st, or between 8 P.M. and 7 A.M. from April 1st 
to September 30th; and 

(c) To perform other part time services but not in manufacturing 
and mechanical departments, for not more than 3 hours a day, 
between 7 A.M. and 7 P.M., provided that no person under 14 years 
of age shall be so employed.^ 

Sec. 2. (a) Employees shall have the right to organize and bar- 
gain collectively through representatives of their own choosing, and 
shall be free from the interference, restraint, or coercion of em- 
ployers of labor, or their agents, in the designation of such repre- 
sentatives or in self-organization or in other concerted activities for 
the purpose of collective bargaining or other mutual aid or protection. 

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

(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. A publisher assenting to this Code, in any city where 
there are abnormal conditions of business distress or where there is 
an acute shortage of labor of any or all of the classes herein men- 
tioned, which conditions of distress or shortage of labor will create 
great and unavoidable hardship, may, in a petition to the Code Au- 
thority, and with its approval, obtain a stay of such provisions of 
this Code as work the hardship, such stay, however, to be subject 
to approval by the Administrator. 

Sec. 4. The requirements of articles III and IV shall be observed 
except where compliance would violate a contract now in full force 
and effect which contract cannot be revised except by mutual 
consent. 

Sec. 5. Publishers shall post complete copies of this Code in con- 
spicuous places accessible to employees. 

Article VI — The Code Authority 

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

Sec. 2. The Code Authority shall consist of 10 members from the 
newspaper publishing business to be selected as hereinafter pro- 
vided; and in addition there may be three members without vote, to 
be appointed by the President, to serve without expense to those 
assenting to this Code. Five members shall be designated by the 
Board of Directors of the American Newspaper Publishers Associa- 
tion, of whom its President shall be one, and one member by each 

•See letter from President to General Johiisou dafcd I'ehriiary 17, 19.'?4. 



83 

of the following associations : The New England Daily Newspaper 
Association, The Southern Newspaper Publishers Association, the 
Del-Mar- Va Association, the Inland Daily Press Association, and 
the Pacific Northwest Newspaper Association. The President of 
the American Newspaper Publishers Association shall be the Chair- 
man of the Code Authority. 

Sr.c. 3. The Code Authority shall have the following powers and 
duties, in addition to those elsewhere provided in this code, subject 
to the right of the Administrator to review any action taken by it: 

(a) To adopt bylaws and rules and regulations for its procedure. 

(b) To receive complaints of violations of this Code, make investi- 
gations thereof, provide hearings thereon when necessary, and adjust 
such complaints. 

(c) To call for such reports and collect such information as it 
deems necessary in the administration of this Code. 

(d) To coordinate the administration of this Code with such other 
code or codes, if any. as may affect the business of publishers assent- 
ing to this Code. Publishers who are also engaged in the sale of 
printing, photo-engraving, or other related products to others than 
newspapers are bound by the provisions of this Code only insofar as 
their operations are concerned Avith the business of ])iililisliing news- 
Ijapers. 

(e) To secure au equitable and proportionate payment of the 
expense of maintaining the Code Authority and its activities. 

(f) To initiate, if necessary, and recommend modifications or 
amendments of this Code, which, upon approval by the Adminis- 
trator, shall become a part of the Code. 

Sec. 4. The Code Authority shall have power to employ counsel, 
clerical, and expert help. It shall also have power to appoint such 
agencies, and may delegate to any of them such of its powers and 
duties, as it shall deem necessar}' or proper. 

Sec. 5. (a) There shall be established within ten days after the 
effective date of this Code a newspaper Industrial Board, consisting 
of four publisher members to be designated by the Code Authority, 
and four members representing the emploj'ees, to be selected by the 
N.R.A. Labor Advisory Board, subject to the approval of the Ad- 
ministrator. These eight shall select a permanent panel of five 
impartial chairmen, from which panel, in the event of a deadlock 
on any question, shall be chosen by lot a ninth member of the Board 
who shall act as chairman and cast the deciding vote. The emploj^er 
members or the employee members ma3^ by notice in writing, re- 
move not more than tAvo names from the permanent panel. Vacan- 
cies on the panel shall be filled immediately in the manner in which 
the original panel was selected. Except as hereinafter provided, this 
Board shall consider controversies arising from the application of 
this Code, and shall have power to promulgate rules and regulations 
for the determination of such controversies. Where a contract or 
agreement provides a method of determining controversies, that 
method shall be followed and the Board shall not take jurisdiction. 

(b) Any controversy concerning hours, wages, and conditions of 
employment, arising under this Code between an employer and his 
emploj-ee sliall, if possible, be adjusted locally. 



84 

(c) Any such controversy which cannot be so settled shall be 
referred to the Newspaper Industrial Board for its consideration 
and determination and the decision of said Board shall be accepted 
by the parties to the controversy as effective for a provisional period 
of not longer than one year, but not beyond the period of this Code, 
to be fixed by the Board. 

(d) During the consideration of any such controversy neither 
party shall change the conditions existing at the time the controversy 
arose, or utilize any coercive or retaliatory measures to compel the 
other party to accede to its demands. 

(e) If any controversy shall arise as to who are the representatives 
of the employees chosen as provided in Section 7 (a) of the National 
Industrial Recovery Act, the Board shall have power to investigate 
and determine the question. 

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) sub- 
mit to the Administrator true copies of its articles of association, by- 
laws, regulations, and any amendments when made thereto, together 
with such other information as to membership, organization, and 
activities as the Administrator may deem necessary to effectuate the 
purpose of this Code. 

Sec. 7. Nothing contained in this Code shall constitute the mem- 
bers of the Code Authority partners for any purpose. Xor shall 
any member of the Code Authority be liable in any manner to any- 
one for any act of any other member, officer, agent, or employee of 
the Code Authority. Xor shall any member exercising reasonable 
diligence in the conduct of his duties hereunder be liable to anyone 
for any action or omission to act under the Code, except for his own 
willful misfeasance or nonfeasance. 

Sec. 8. Xo 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 VII 

Those submitting this Code recognize that pursuant to Section 
10 (b) of the Act the President may, from time to time, cancel or 
modify any order approving this Code, but in submitting or sub- 
scribing to this Code the publishers do not thereby consent to any 
modification thereof, except as each may thereto subsequently agree, 
nor do they thereby waive any constitutional rights^ or consent to 
the imposition of any requirements that might restrict or interfere 
with the constitutional guarantee of the freedom of the press.* 

Article VIII 

This Code shall become effective on the second Monday after its 
approval by the President and shall continue in force until Title I 
of the Xational Industrial Recovery Act shall cease to be in effect as 
now provided in Section 2 (c) of the Act. 

Approved Code No. 288. 
Registry No. 507-1-05. 



• See par. 2 of Executive order approving this Code. 

* See par. 3 of Executive order approving this Code. 

o 



Approved Code No. 289 
CODE OF FAIR COMPETITION 

FOR THE 

CLOTH REEL INDUSTRY 

As Approved on February 17, 1934 



ORDER 



Approving Code of Fair Competition' for the Cloth Reel Industry 

An application having: been duly made pnr^uant to and in full 
compliance with the provisions of Title I of the Xati«.)nal Industrial 
Recovery Act, approved June 16. 1933. for approval of a Code of 
Fair Competition for the Cloth Reel Industry, and hearings having 
been dulj' held thereon and the annexed report on said Code, con- 
taining: tindinirs with respect thereto, having: been made and directed 
to the Pre.^ident: 

NOW, THEREFORE, on behalf of the President of the United 
States. I, Hug:h S. Johnson. Administrator for Industrial Recovery, 
pursuant to authority vesteil in me by Executive Orders of the 
President, including: Executive Order No. 6543-A, dated December 
30, 1933. and otherwise; do hereby incorporate by reference said an- 
nexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act ; and do hereby order that said Code 
of Fair Competition be and it is hereby approved : provided, 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 
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 anv order which I may make after such hearing 
shall have the effect of a condition on the approval of said Code. 

Hugh S. Johnson. 
Ad/nhihfrato/- for Indmfrial Ricovcry. 

Approval recommended : 
Geo. L. Berry. 

Division Adm in istrator. 
Washington, D.C. 

Fehru^iry 17, 193 Jf. 

41092° 37t>-101 34 (So) 



REPORT TO THE PRESIDENT 

The President, 

White House, 
Sir : This is a report of the hearing on the Code of Fair Com- 
petition for the Cloth Reel Industry, conducted in Washington on 
January 23, 1934, in accordance with the provisions of Title I of 
the National Industrial Recovery Act. 

HOURS AND WAGES 

The 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 non-productive em- 
ployees. Office employees are limited to an average of 40 liours 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 35^ per hour for females. In the 
South the minimum wage rate for hourly paid employees is 37^^^ 
per hour for males and 32i/4^> per hour for females. Office employees 
will receive a minimum wage of $1G.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 PROVISIONS 

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

ECONOMIC EFFECT OF THE CODE 

The Industry emi)loyed in 1929 about 200 persons. Based on the 
productioji of le^•el of June, 1933 the proposed forty hour week of 
the Code will increase employment 3%. 

As a result of the Code the total increase in payrolls in the 
Industry will be about 20%. 

FINDINGS 

TIh! Deputy Administrator in his final report to me on said Code 
having found as herein set forth, and on the basis of all the ]iro- 
ceedirigs in this jnatter 

I find that: 

(a) Said Code is well (Icsigiicd (o pi'omote the ])o]icies and piii'- 
jjoscs of Title I of the National Industrial Recovery Act, including 
removal of obsli-uctions to the ['kh' (lov/ of intei'state and foreign 
coinmci-cc which tend to diminish (he amount thereof and vv'ill pro- 

(86) 



87 

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 sanction and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
l>ossible utilization of the present productive capacity of industries, 
by avoiding undue restrictions of production (except as may be 
temporarily required), l)y increasing the consumption of industrial 
and agricultural products through increasing purchasing power, by 
reducing and relieving unemj)loyment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than r)(1,0()() eui- 
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 
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. 

(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 oppress 
small enterprises and Avill 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 17, 1934. 



CODE OF FAIR COMPETITION FOR THE CLOTH REEL 

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 and/or reconditioning of paper 
covered wooden frame cloth winding reels, and other fabricated cloth 
winding reels made of corrugated paper, chip board and like 
materials. 

" Member." A natural i)erson, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, receiver, or other form 
of enterprise, 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 Executive Committee of the Cloth Reel Manufac- 
turers' Association, together with such person or persons as jnay be 
designated by the Administrator, is hereby constituted the Code 
Authoi'ity. The members of the Code Authority designated by the 
Administrator shall liave no vote and shall serve without compen- 
sation from the Industry. 

Section 2. The said Association shall file with the Administrator 
certified copies of any amendments of its By-Laws relating to eligi- 
bility or admission to membership in said Association, or relating 
to the method of election of the members of such Executive Com- 
mittee, wliich said Association may hei'eafter a(loi)t. 

Section H. The A(huinisti'ator may at any time ])rescribe a dif- 
ferent method for electing tli(> Inchistry members of the Code Au- 
thority, and thereafter, sudi members shall be elected in the manner 
so prescribed. 

Section 4. The (.ode Authority is charged generally with the 
duty of administering this Code. If the Administrator shall deter- 
mine that any action of the Code Authority or any agency thereof 
may be unfaii- or unjnst or contrary to the public interest, the Ad- 
ministrator may re(jiiii'e that such action be suspended to afford an 
opjioi-liinily for investigation of the merits of such action and fur- 
ther consideration by the Code Authoi'ity or agency pending final 
action which shall not be effectivi; unless tlie Administrator approves 

(88) 



89 

or unless he shall fail to disapprove after thirty (30) days notice to 
him of intention to proceed with such action in its original or modi- 
lied form. 

Section 5. The expenses of administering; this Code shall be borne 
pro rate, 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. 

Section G. 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 Avith reconnnendations to the Administrator. 

Section 7. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purposes ; nor shall 
any member of the Code Authority be liable in any way to aii}^ one 
for any act of any other member, officer or agent or employee of the 
Code Authority; nor shall any member of the Code Authority be 
liable to any one for any action or omission to act under the Code, 
except for his own willful misfeasance or non-feasance. 

Article III— Hours of Lakor 

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 schedule : 

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, truckmen: One hundred sixty-eight (168) hours 
in any period of four (4) consecutive weeks but not more than forty- 
eight (48) hours in any one week, provided, however, that time 
worked in excess of ten (10) hours in any one clay or forty-five (45) 
hours in any one week shall be paid for as not less than time and 
one-half. 

(c) Engineers, firemen: One hundred sixty-eight (168) hours in 
any period of four (4) consecutive weeks but not more than forty- 
eight (48) hours in any one week, 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-half. 

(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 pro- 
vided that all time worked in excess of the maximum prescribed 
shall be paid for as not less than time and one-half, and provided, 
further, that no employee shall be required or permitted to work in 
excess of forty-eight (48) hours in any one week. 



90 

(e) Executives and other employees engaged in a supervisory 
capacity and receiving thirty-five dollars ($35.00) 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. 

Section 2. No limitation contained in said schedule shall apply 
to employees 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 limitation prescribed in said schedule shall be paid 
for as not less than time and one-half. 

Section 3. No employees covered by Section 1 (b), (c), (d), and 
(f ) of this Article shall be permitted to work more than six (6) days 
in any seven (7) day period. 

Section 4. No employer shall i)ermit any emi)loyee 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. 

Section 5. No employer shall require or permit any female 
employee to work between the hours of 10 : 00 P.M. and 6 : 00 A.M. 

Article IV — Wages 

Section 1. The mininuun Avage of any employee, other than office 
or clerical employee, employed in any 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 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, Flor- 
ida, Alabama, Mississippi, Louisiana, Arkansas and Texas: Male 
labor, 371^ cents per hour; Female labor, 32i^ cents per hour. 

Section 2. The miuimuui rate of wage of any office or clerical 
employee, except coniniissiou salesmen, shall be sixteen dollars 
($lG.0b) per week. 

Section 3. This Article establishes a minimum rate of pay which 
sliall apply irrespective of whether an employee is actually compen- 
sated on time rate, piece Avork, or other basis. 

Section 4. Female employees perfoi-ming substantially the same 
woi-k under the same conditions as male emi)loyees shall I'eceive the 
same rate of pay as male (>mj)loyees. T])e Code Authoi-ity shall 
within ninety ((H)} (hiys after the elective date of this Code file 
with tlie Administrator a (lescrii)tion of all occupations in the Indus- 
try in which both men and women ai'e employed. 

Se( 'JiON 5. The wage rates of all employees shall be (>(|iiitably 
readjusted but in no casx' shall they be decreased. 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 for his approval of the method of such adjust- 
ments. 



91 

Section 6. A person whose earnino- 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 ^/c 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 (60) days after the 
effective date of this Code. 

Article V — General Lalor 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 
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. 

Section 2. Employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free fi'om 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. 

Section 3. 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, Avages, hours of work, or as to safety, 
health, sanitary or general working conditions or insurance or fire 
protection, than are imposed by this Code. 

Section 4. No employer shall reclassify employees or duties of oc- 
cupations performed or engage in any other subterfuge for the pur- 
pose of defeating the purposes or provisions of the Act or of this 
Code. 

Section 5. All employers shall post complete copies of the labor 
provisions of this Code in conspicuous places accessible to employees. 

Section 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 submitted by the Code Authority to the Administrator within 
six (6) months after the effective date of this Code. 



92 

Section 7. 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. 

Section 8. The manufacture or partial manufacture of any product 
of the Industiy in homes shall be prohibited. 

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. 

Section 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 members of the Industry, who manufacture such products, 
not less than thirty (30) days prior to the date so fixed. 

Section 3. At least ten (10) 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 prices 
and terms of sale with the schedule at any time on file which states 
the lowest price and the most favorable terms. 

Section 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 ])rovided in Section 2 hereof. 

Section 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 C^ode Authority at any time, pro- 
vided, however, that any member who withdraws a schedule without 
substituting a new schedule therefor shall be deemed to have filed a 
scheduk' conforming in respect to ])i'ice and terms of sale Avith the 
schedule at any time thereafter on file which states the lowest j)rice 
and the most favorable terms. Any schedule or iiotice filed Iiere- 
under shall become effective five (5) days after the date of filing, 
provided, however, that an inci'eased ])rice may become effective at 
such earlier date as the member filing the same shall fix. 

Section 6. The Code Authority shall j)rom])tly supply all mem- 
bers of the Industry, wlio manufactui'C any particular product, with 
copies of all schedules, revised schedules, and notices of withdi-awal, 
which pertain tf) such j)roduct. Immediately upon receipt of infor- 
mation relative to the withdrawal of a ])rice for any product, any 



93 

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 numl5er. 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. 

Section 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 
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. 

Section 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 loAvest price and 
most favorable terms stated in any price schedule for such product 
then on file. 

Section 9. The Code Authority 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 
non-members at the time that they are sent to members.^ 

Section 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. 

Section 11. Cost, for the purposes of this Article, shall be deter- 
mined pursuant to the method of accounting and costing prescribed 
as provided in Section 1 hereof as soon as such method is adopted 
and approved, and theretofore pursuant to the method employed 
by such member subject to such preliminary rules as the Code 
Authority shall from time to time prescribe with the approval of 
the Administrator. 

Section 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 information in regard to any quotation, order, contract or 
sale of any product of the Industry", including information as to 
specifications, quantities, ]>rice, conditions of storage, trans])orta- 
tion or delivery, terms of billing, cash or trade discounts allowed, 
and other pertinent facts relating to such quotation, contract or sale. 

' See paragraph 2 of order approving this Code. 



94 

Section 13. Nothing herein contained shall be construed to pre- 
vent 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 on 
such terms and conditions as the Code Authority and the Adminis- 
trator may approve. 

Section 14. Nothing herein contained shall be construed to pre- 
vent 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 the Execu- 
tive Secretary of 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 iri units' 
and dollars, orders received, unfilled orders, stocks on hand, inven- 
tory both raw and finished, number of employees, wage rates, em- 
ployee earnings, hours of work and other matters, as the Code 
Authority or the Administrator may from time to time require. 
Any or all information so furnished by any member shall be subject 
to checking for the purpose of verification ))y an examination of the 
books and accounts and records of such members by any disinter- 
ested accountant or accountants or other qualified person or persons 
designated by the Code Authority. 

Section 2. Except as otherAvise provided in the Act or in this 
Code, all statistics, data and information filed or required in accord- 
ance with the provisions of this Code shall be confidential and the 
statistics, data and information of one member shall not be revealed 
to anotlier member. No such data or information shall be published 
except in combination wntli 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 
publication currently to members, totals of orders received, unfilled 
orders, shipments, stocks of finished goods on hand and productioiL 

Section 3. The Code Authority shall make such reports to the 
Administrator as he may from time to time require. 

Section 4. In addition to information required to be submitted 
to the Code Authority there shall be furnished to (jovernment 
Agencies such statistical information as the Administrator may deem 
necessary for the purposes recited in Section 3 (a) of the Act. Noth- 
ing contained in this Code shall relieve any member of any existing 
obligations to furnish reports to any Government Agency. 

Article VIII — Recommendations 

Section 1. The Code Authority may from time to time present 
to the Administrator recommendations based on conditions in the 
Industry whicli will tend to effectuate the operation of this Code 
and the jjolicy of the Act. Such recommendations, when approved 
by the Administrator, shall have the same force and effect as the 
other provisions of this Code. 



95 

Article IX — Trade Practices 

Section 1. No member shall sell second-hand or reconditioned reels 
unless such reels are billed as such and plainly marked on the two 
protruding ends in legible type '^ Reconditioned Reel." 

Section 2. No member of the Industry sliall 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 (includijig. but without 
limitation, their 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 tlie 
business conducted. 

Section 3. No member of the Industry shall wiliihohl from or 
insert in any quotation or invoice any statement that makes it in- 
accurate in any material pai'ticuhir. 

Section 4. No member of the Industry shall brand or mark or 
pack any goods in any manner whicii is intended to or does deceive 
or mislead purchasers with respect to the brand, grade, quality, quan- 
tity, origin, size, substance, character, nature, finish, material, con- 
tent or preparation of such goods. 

Section 5. No member of the Industry shall publisli advertising 
Avhich refers inaccurately in any matei'ial particular to any com- 
petitors or their goods, prices, values, credit terms, policies or 
services. 

Section G. No member of the Industry shall publish or circulate 
unjustified or unwarranted threats of legal proceedings which tend to 
or have the effect of harassing competitors or intinndating their 
customers. Failure to prosecute in due course shall be evidence that 
any such threat is unwarranted or unjustified. 

Section 7. No member of the Industry shall secretly offer or make 
any payment or allowance of a rebate, refund, commission, credit, 
unearned discount or excess allowance, whether in the form of 
money or otherwise, nor shall a member of the Industry secretly 
offer or extend to any customer any special service or privilege not 
extended to all customers of the same class, for the puri>ose of 
influencing a sale. 

Section 8. No member of the Industry shall ship goods on con- 
signment, except under circumstances to be defined by the Code 
Authority where peculiar circmnstances of the Industry require the 
practice. 

Section 9. No member of the Industry shall give, permit to be 
given, or directly offer to give, anything of value for the purpose 
of influencing or rewarding the action of any employee, agent or 
representative of another in relation to the business of the employer 
of such employee, the principal of such agent or the represented 
party, without the knowledge of such employer, principal or party. 
The foregoing provision shall not be construed to prohibit free and 
general distribution of articles commonly used for advertising 
excepting so far as such articles are actually used for commercial 
bribery as herein defined. 

Se(;tion 10. No member of the Industry shall attempt to induce 
the breach of an existing contract between a competitor and his 



96 

emploj^ee or customer or source of supply, nor shall any such mem- 
ber interfere with or obstruct the performance of such contractual 
duties or .services. 

Section 11, No member of the Industry shall require that the 
purchase or lease of any goods be a prerequisite to the purchase or 
lease of any other goods. 

Section 12. No member of the Industry shall join or participate 
with other members of the Industry who, with such member, con- 
stitute a substantial number of members of the Industry or who 
together control a substantial percent of the business in any spe- 
cific product or products of the Industry, in any transaction known 
in law as a black list, including any practice or device (such as a 
white list) wliich accomplishes the purpose of a black list. 

Article X — 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 wdiich is included in this Industry. 

Section 2. Any work or process incidental to and carried on 
by a member at his i:)lant a,s a part of the manufacture of any 
product of the Industry, shall be regarded as a part of this Industry. 

Section 3. Such of the provisions of this Code as are not required 
to be included therein by the Act, may, wath the approval of the 
Administrator, be modified or eliminated as changes in circumstances 
or experience may indicate. 

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

Section 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. 289. 
Registry No. 405-35. 



O 



Approved Code No. 290 
CODE OF FAIR COMPETITION 

FOR THE 

PHOTOGRAPHIC MOUNT INDUSTRY 

As Approved on February 17, 1934 



ORDER 



Approving Code of Fair Competition for the Photographic Mount 

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 Photographic Mount Industry, and hear- 
ings having been duly held thereon and the annexed report on said 
Code, containing findings with respect thereto, having been made 
and directed to the President: 

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

Approval recommended : 
Geo. L. Beery, 

Division Administrator, 

Washington, D.C, 

February 17. 1934. 

41088° 376-102 34 (97) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report of the hearing on the Code of Fair Com- 
petition for the Photographic Mount Industry, conducted in Wash- 
ington on October 24, 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 eight week period. 

The minimum wage rate for hourly paid employees is 40^ per 
hour for males and 3.5^ per hour for females. Office employees will 
receive a minimum wage of $15.00 per week. 

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 approximately 1,000 persons, and 
in 1933, 655 persons. From March 1933 to September 1933 the num- 
ber of workers increased 10%. This reflects in part the effects of the 
President's Reemployment Program and in part a rise in produc- 
tion. To decrease the schedule of working hours sufficiently to 
attain the 1929 total of employees, would increase the cost of pro- 
duction to such an extent as to endanger the existence of the Indus- 
try by driving its products from tlie market. It would, in addition, 
have a disrupting effect upon labor in the localities where the phints 
of this Industry arc located. 

The total increase in payrolls as a result of the Code will be 11 
or 12%. 

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; 

(08) 



99 

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 Avhich tend to diminish the amount thereof and will pro- 
Ande 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 
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 emploj^s not more than 50,000 em- 
ploj'ees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant 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, 

A dministrator. 
February 17. 1934. 



CODE OF FAIR COMPETITION FOR THE PHOTO- 
GRAPHIC MOUNT 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, or processing of, mounts for 
photographs made from paper, cardboard, or other materials, or 
combinations of them, 

" Member " — A natural person, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, receiver, or other form of 
enterprise, 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 National 
Photographic Mount Manufacturers Association, together with 
such other person or persons, not to exceed three in number, as the 
Administrator may designate, are hereby constituted the Code Au- 
thority of the Industry. The members of the Code Authority desig- 
nated by the Administrator shall have no vote and shall serve 
without compensation from the Industry. 

2. The said Association shall impose no inequitable restrictions on 
membersliip and shall file with the Administrator certified copies of 
any amendments of its By-Laws, relating to eligibility or admission 
to monibei-sliip in said Association, or relating to the method of 
eelection of the members of such Executive Connnittee which said 
Association may hereafter adopt. 

3. The Administrator may at any time ju'cscribe a different method 
for selecting the Industry members of the Code Authority, and there- 
after, such members shall be chosen in the manner so ])rescribed. 

4. The Code Authority is charged genei'ally 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 Administrator 
may re(|uir(! tliat such action be suspended to afford an opportunity 
for investigation of the mei-its of such action and further considera- 
tion by the Code Authoi'ity or agency pending final action which 
BJiall not be effective unless the Administrator aj)proves or unless 

(100) 



101 

he shall fail to disapprove after thirty (30) 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 wdio 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 appli- 
cation of the provisions of the Act or of this Code. 

8. The Code Authority shall establish a Credit Bureau for the 
purpose of exchanging credit information among the members of 
the Industry. All members of the Industry shall, within thirty 
(30) days after the effective date of this Code and from time to 
time thereafter at such intervals as the Code Authority shall pre- 
scribe, furnish to the Code Authority a description of each credit 
account which has been delinquent for a period of not less than sixty 
days, and shall continue to furnish to the Code Authority such 
information related to such account or accounts as the Code Author- 
ity may prescribe. 

9. Nothing contained in this Code shall constitute the members of 
the Code Authority partners for any purpose. Nor shall any mem- 
ber of the Code Authority be liable in any manner to anyone for 
any act of any other member, officer, agent or employee of the Code 
Authority. Nor shall an}' 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 mis-feasance or non-feasance. 

Article III — Hours of Labor 

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

SCHEDULE OF WORKING HOURS 

(a) AVatchmen: 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, 
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: 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 



102 

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 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 pro- 
vided that all time worked in excess of the maximum prescribed 
shall be paid for as not less than time and one-third, and pro\aded 
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 managerial or executive 
caj^acity and their personal secretaries, foremen and supervisors, 
receiving thirty-five dollars ($35.00) 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 emer- 
gency maintenance work occasioned by breakdowns or involving 
protection of life or property^ provided, however, that all time 
worked in excess of the limitation 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 an- 
other employer or employers in this Industry, exceeds the maximum 
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: 

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

2. The minimum rates of wages for all other employees shall be 
as follows: 

(a) $15.00 per week. 

(b) Part-time employees covered by the provisions of this Section 
shall be paid at the rate of not less than 37^20 P<3r hour. 

3. This Article establishes a minimum rate of jjay which shall 
apply irrespective of whether an employee is actually compensated 
on tiine-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 ninety (90) days after the effec- 
tive date of this Code file with the Administrator a description of 
all occujKitions in the Industry in which both men and women are 
employed. 

5. The wage rates of all employees receiving more than the mini- 
mum rates herein prescribed shall be reviewed and such adjustments, 



103 

if any, made therein as are equitable in tlie light of all the circum- 
stances, and within sixty (60) da5^s after the effective date hereof, 
the Code Authority shall report to the Administrator the action 
taken by all members of the Industrj^ 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 Sec- 
tion 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 emploj'^ed by each member. 

7. A person whose earning capacity is limited because of age or 
ph3'^sical 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 emplo3mient 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 thi3 
Code. 

Article V — General Labor Provisions 

1. No person under sixteen (16) j'ears 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 
empl'o^^er 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 

2. Employees shall have the right to organize and bargain collec- 
tively through representatives of their own choosing, and shall be 
free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. No em- 
ployee and no one seeking employment shall be required as a con- 
dition of employment to join any company union or to refrain from 
joining, organizing, or assisting a labor organization of his own 
choosing. Emplo5'ers 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 i^rovision in this Code shall supersede any State or Fed- 
eral law which imposes on employers more stringent requirements as 
to age of employees, wages, hours of work, or as to safety, health, 
sanitary or general working conditions or insurance or fire protec- 
tion, than are imposed by this Code. 

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



104 

6. Every employer shall make reasonable provisions for the safety 
and health of his employees at the place and during the hours of 
tlxeir 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. The Code Authority shall make a study of conditions in the 
Industrj^ 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. 

8. 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 sub- 
mit the same to the Administrator.. When it shall have been ap- 
proved by the Administrator, every member shall use an accounting 
and costing system which conforms to the principles of, and is at 
least as detailed and complete as, such standard method. 

2. The Code Authority may from time to time determine that an 
ojDen 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 
thirty (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. All such original 
scliedules shall become effective on the date fixed by the Code 
Authority as provided in Section 2 thereof. 

5. A revised schedule or schedules, or a new schedule or schedules, 
or a notice of withdrawal of a schedule previously filedj 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 therefore shall be deemed to have filed a schedule con- 
forming in respect to price and tei'ms 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; seven (7) days after the date of filing, provided, how- 
ever, that an increased piice may become effective at such earlier 
date as the member filing the same shall fix. 

6. The Code Authority upon written request shall promptly sup- 
ply all members of the Industry who manufacture any particular 



105 

product with copies of all schedules, revised schedules, and notices of- 
Avithdrawal, which pertain to such product. Immediatel}^ 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 infor- 
mation that a schedule then on file has been revised, or that a new 
schedule has been filed, any member may file a revised schedule con- 
forming 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 to a photographer or consumer 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 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 non-member of 
the Industry requesting them, copies of any price schedules which 
have been filed with it. Such price schedules shall be made avail- 
able to non-members of the Industry 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 to a photographer or consumer at less 
than the cost thereof to such member, determined as provided in Sec- 
tion 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 
provided in Section 1 hereof as soon as such method is adopted, and 
ajDproved, and theretofore pursuant to the method employed hj such 
member subject to such preliminary^ rules as the Code Authority shall 
from time to time prescribe with the approval of the Administrator. 

12. For the purpose of determining whether Section T 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 com- 
plete information 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 



* See paragraph 2 of order approving this Codfi. 



106 

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 on 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 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 infor- 
mation 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 designated by the 
Code Authority. 

2. Except as otherwise provided in the Act, or in this Code, all 
statistics, data and information filed or required in accordance with 
the provisions of this Code shall be confidential and the statistics, 
data and information of one member shall not be revealed to another 
member. No such data or information 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 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. Nothing contained 
in this Code shall relieve any member of any existing obligations 
to furnish reports to any Government Agency. 

Artioi.e 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 
Ad.Aiinistrator recommendations based on conditions in the Industry 



107 

which will tend to effectuate the operation of this Code and the 
policy of the Act, and in particular along the following lines : 

(a) For the establishment of additional rules of Fair Trade Prac- 
tices for the Industry and for the 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 employ- 
ment. 

(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) Members of the Industry shall not practice deception in 
regard to that which is sold or its selling price by false or mis- 
leading 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) Meml^ers 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 employee, the 
principal of such agent or the represented party, without the knowl- 
edge of such employer, principal or party. The foregoing provi- 
sions 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 deliberately reproduce or copy without the 
written consent of the Code Authority an original photographic 
mount of fancy design of any other member. 



108 

Article XI — General Provisions 

1. If any member is also a member of another industry, the provi- 
sions 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 
of 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 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 this 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. 290. 
Registry Ko. 407-09. 



o 



Approved Code No. 291 
CODE OF FAIR COMPETITION 

FOR THE 

WOOD CASED LEAD PENCIL MANUFACTURING 

INDUSTRY 

As Approved on February 17, 1934 



ORDER 



Approving Code of Fair Competition for the Wood Cased Lead 
Pencil 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 Wood Cased Lead Pencil Manufacturing 
Industry, and hearings having been duly held thereon and the 
annexed report on said Code, containing findings with respect there- 
to, having been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
State, 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 provision,s 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 the trade association participating in 
the selection or activities of the Code Authority after thirty days 
from the effective date of this Code shall be contingent upon its con- 
stitution and by-laws being amended to the satisfaction of the 
Administrator and, provided further, that the provisions of Section 
I of Article VII and Sections 8, 9, 10, 11, 12, 13, 14 and 15 of Article 
X are suspended pending further study and determination by the 
Administrator, 

Hugh S. Johnson, 
Achninisfrafor for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

D iv is ion A dmin istra tor. 
Washington, D.C, 

Fehruary 17 ^ 19 3 If.. 

41320° 376—103 34 (109) 



REPORT TO THE PRESIDENT 

The President, 

TU White House. 

Sir : A public hearing on the Code of Fair Competition for the 
Wood Cased Lead Pencil Industry of the United States was con- 
ducted in Washington on the 6th of November, 1933, in accord- 
ance with the provisions of the National Industrial Recovery Act. 
The Institute claims to represent 97 percent of the Industry. 

The maximum hours established in the Code for the AVood Cased 
Lead Pencil Manufacturing Industry are 40 per week except firemen 
and employees in shipping and cartage service who shall be allowed 
a maximum of 46 hours per Aveek. Kiln tenders, cleaners and watch- 
men may be employed in pairs and shall not work more than 36 and 
48 hours on alternate weeks or an average of 42 hours per w^eek. 
Persons emploj^ed in a managerial or executive capacitj^ and supervi- 
sory staffs receiving $35.00 per week or more, traveling salesmen and 
employees engaged in emergency repair work are excepted as to hours 
provided emergency repair crews receive time and one third for all 
hours worked per week in excess of forty. To provide for peak 
demand periods all employees except those stated above who are 
exceptions to the maximum hours may be employed a total of 46 
hours per week averaged to ioviy during any thirteen week period 
and time and one third shall be paid for all hours worked in excess of 
forty per week. Each employee in the industry is guaranteed one 
day 01 rest in every seven unless specifically excepted by the Code 
Authority. 

The AVood Cased Lead Pencil Manufacturing Industry operated on 
an average, according to the Bureau of Census figures, of 50 hours 
per week in 1929 and 45 hours per week in 1931. In 1929 this indus- 
try employed 4,476 individuals of whom 3,756 were wage earners. 
Wage earner employment declined 24.5 percent from 1929 to 1931. 
To bring the number of wage earners back to the 1929 level of em- 
ployment or to 3,756 wage earners it would be necessary for the 
industry to adopt a 34 hour week, assumin<T that employment since 
1931, the latest data available has been fairly constant. However, 
since 1931 the industry has reemployed a number of persons and, 
therefore, a 40 hour week seems the most advisable basis to use in 
establishing an approximation as to the number of additional wage 
earners who might be l)enefited through reemployment. On the 
basis of a 40 hour week 564 wage earners should benefit through 
reemployment. 

The wages established by the Code foi- this industry are 36 cents 
per hour or $14.40 per week of 40 hours except in the State of Ten- 
nessee, where no employee shall be paid less than at the rate of 
30 cents per hour or $12.00 per week of foi-ty hours. The industry 
agrees to maintain the policy of not rcchicing the compensation for 

(310) 



Ill 

employment Avhicli compensation was, prior to June 16, 1933, in 
excess of the minimum wage established in the code, notwithstand- 
ing that the hours of emiDloyment may be reduced ; and unless since 
such date such adjustments have been made, all members of the in- 
dustry agree to endeavor to increase the pay of all employees in 
excess of the minimum Avage by an equitable adjustment of all pay 
schedules. Office boys and office girls, 18 years of age or less, may 
be engaged at not less than 80 percent of the minimum rates estab- 
lished, the number of such employees to be limited to 5 percent of 
the total office staff but in no case less than one such employee. 

The average hourly rate for wage earners in this industry in 
1929, based on a 50 hour week, was 42.7 cents, while in 1931, using 
a 45 hour week as the basis, the average was 40.2 cents per hour. On 
the basis of the 1931 hourly average, the average salary per wage 
earner amounted to $18.12 per week. On the same hourly basis for 
a 40 hour week the average salary would amount to $16.08 per week. 

With regard to the marketing provisions in Article X of the Code 
careful consideration has been given these provisions by the Re- 
search and Planning Division and the Legal Division and in various 
conferences held with the industry these provisions were amended, 
modified and changed to eliminate undesirable features and in its 
present form it is felt to be equitable and necessary to this industry. 
These provisions will not work to the disadvantage of the consumer. 
On the contrary it is felt that they would work to their advantage 
inasmuch as quality would become more of a factor in competition 
than price. 

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, includ- 
ing 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, 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 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 will amend their constitu-; 



112 

tion and by-laws to the satisfaction of the Administrator so that no 
inequitable restrictions on membership will be imposed 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 in 
the preparation of this Code. From the evidence adduced during 
the hearing and from recommendations and reports of the various 
Advisory Boards, it is believed that this Code in its present form 
as approved represents an effective, practical, equitable solution for 
this Industry and for these reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator, 
February 17, 1934. 



CODE OF FAIR COMPETITION FOR THE WOOD CASED 
LEAD PENCIL MANUFACTURING INDUSTRY 

Article I — Purposes 

To effectuate the jDolicies of Title I of the National Industrial 
Recovery Act, this code is established as a code of fair competition 
for the Wood Cased Lead Pencil Manufacturing Industry, and its 
provisions shall be the standard of fair competition for such industry 
and binding upon every member thereof. 

Artici-e II — Definitions 

1. The term " Wood Cased Lead Pencil Manufacturing Industry " 
shall include the production in continental United States of wood 
cased lead pencils, commencing with the assembly of wood slats 
and leads and the processing of these materials in combined form, 
resulting in the completed wood cased pencil, either with, or without, 
the tip and/or eraser. The term shall also include such related 
manufacturing branches or subdivisions of the industry as may, from 
time to time, be included under the provisions of this code by the 
President of the United States, after such notice and hearing as he 
may prescribe. 

2. The term " Member of the Industry " or " Member " includes 
each of those engaged in the industry as defined above operating 
as an employer. 

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

4. The term " Institute " shall mean the Lead Pencil Institute, 
Incorporated. 

5. The term " Dealer " shall include each of those who is regularly 
engaged in the wholesaling and/or retailing of wood cased lead 
pencils (except blanks) in the ordinary course of business. This 
shall not include the sale of pencils for use as advertising. 

6. The term " Distributor " shall include each of those purchas- 
ing pencils in blank form and re-selling in that form and/or im- 
printing or stamping such blank pencils and re-selling them for 
advertising purposes. 

7. The term " Consumer " shall mean any purchaser of wood cased 
leftd pencils who is not a dealer or distributor as defined above. 
Commissaries and other buying agencies operated by corporations 
or groups of corporations for the procurement of supplies for their 
own use, and boards of education, are included. 

8. The term " Sales Agents " or " Agent " shall include each of 
those who or which shall serve the members of the industry in the 
distribution of wood cased lead pencils to dealers, in the same capac- 
ity as the members' sales departments. Such agents shall be ap- 

(113) 



114 

pointed only in accordance with regulations adopted by the Code 
Authority and approved by the Administrator. 

9. The term " Products " shall mean wood cased lead pencils with 
or without tips or erasers. 

10. The terms "Act '' and "Administrator '' as used herein mean 
respectively Title I of the National Industrial Recovery Act and the 
Administrator for Industrial llecovery. 

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

Article III 

Section 1. Maximum Hours. — No employee shall be permitted to 
work in excess of 40 hours in anj^ one week, except as herein 
otherwise provided. 

Section 2. Exceptions as to Hours. — Firemen and employees in 
shipping and cartage service, shall be allowed a maximum of 46 
hours per week. 

Section 3. Kiln tenders, cleaners and watchmen may be employed 
in pairs, and shall not work more than 36 and 48 hours in alternate 
weeks or an average of 42 hours per week. 

Section 4. The provisions of this Article shall not apply to persons 
employed in a managerial or executive capacity, or supervisory staff 
who earn $35.00 per week or more; traveling salesmen; or to em- 
ployees engaged in emergency repair work; provided, however, that 
time and one third shall be paid emergency repair crews for all hours 
over 40 worked per week. 

Section 5. To provide for peak periods labor other than as pro- 
vided for in sections (2), (3) and (4), may be employed a maximum 
of 46 hours per week provided that during any 13 Aveek period the 
total number of hours worked shall not exceed 520; and further 
provided that time and one third shall be paid for all hours worked 
in excess of 40 per week. 

Section 6. Employment hy Several Employers. — No employee 
shall work or be permitted to work, for a total number of hours in 
excess of the number of hours herein prescribed either if he be 
employed by one or more employers. 

Section 7. Standard Week. — Unless specifically excejited by the 
Code Authority every employee shall be guaranteed one day of rest 
in every seven. 

Articij: IV— Wages 

Section 1. Minivm/n Wae/es. — No employee shall be paid in any 
pay period less than at the rate of 36 cents per hour or $14.40 per 
week of 40 hours for males and 321^ cents per hour or $13.00 per 
week of 40 hours, for females, except as otherwise herein providecf.. 

Section 2. Minimum Wage Rates hy Locality. — In the State of 
Tennessee no employees shall be paid in any pay period less than at 
the rate of 30 cents pei- hour or ^12.00 per week of 40 hours. 

Section 3. Additional zoning classifications may be provided by 
the Code Authority subject t<o the apj)roval of the Administrator. 

Section 4. Pieae-Worh Compensation.— T\\\h article establishes a 
minimum rate of j)ay which is api)lied ii-res))ective of whether an 



115 

employee is actually compensated on a time rate, piece-work per- 
formance or other basis, in which case employees shall be paid once 
a week. 

Section 5. Wages Above the Minimum. — It is the policy of the 
members of this industry to refrain from reducing the compensation 
for employment which compensation was prior to June 16, 1933, in 
excess of the minimum wage herein set forth, notwithstanding that 
the hours of work in such employment may be reduced ; and, unless 
since such date such adjustments have been made, all members of 
this industry shall endeaA'or to increase the pay of all employees in 
excess of the minimum wage, as herein set forth, by an equitable 
adjustment of all paj^ schedules proportionate to the increase in 
compensation as determined by the minimum wage herein provided. 

Section 6. Female Employees. — Female employees performing 
substantially the same work as male employees shall receive the same 
rate of pay as male employees. 

Section 7. Ilandicajyped Person,^. — A person 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 desig- 
nated by the United States Department of Labor a certificate author- 
izing his employment at such wages and for such hours as shall be 
stated in the certificate. Provided that such employees have been in 
the service of their present emploj-ers for a period of not less than 15 
years. Each employer shall file with the Code Authority a list of 
all such persons employed b}" him. 

Section 8. ^Yages Belov the Minimum-. — Office boys and girls, 
eighteen years or younger, may be engaged at not less than eighty 
per cent of the minimum rate established in Sections 1 and 2 of this 
article — number to be limited to 5 per cent of total office staff, but 
in 10 case less than one such employee. 

Article V — General Labor Provisions 

Section 1. Ohild Labor. — No person under sixteen years of age 
shall be employed in the industry. No person under eighteen years 
of age shall be employed at any operations or occupations w^hich are 
hazardous in nature or dangerous to health. The Code Authority 
shall submit to the Administrator within 60 days after the approval 
of this code a list of such hazardous 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 

Section 2. Provisions from the Act. — In compliance with Section 
7(a) of the Act, it is provided : 

(a) That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of em]3loyers 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. 

41320° 376—103 34 2 



116 

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

Section 3. Reclassification of employees. — Employers shall not 
reclassif}' employees or duties of occupations performed or engage in 
any other subterfuge to defeat the purposes of the Act or of this 
Code. 

Section 4. Standards for safety a/nd health. — Every employer shall 
make reasonable provisions for the safety and health of his em- 
ploj'ees at the place and during the hours of their employment. 

Section 5. State laios. — No provision in this code shall supersede 
any State or Federal law which imposes more stringent require- 
ments as to age of employees, wages, hours of work, or as to safety, 
health, sanitary or general working conditions than are imposed by 
this code. 

Section 6. Posting. — All employers shall post and keep posted 
complete copies of the wage and hour and general labor provisions 
of this code in conspicuous places accessible to employees. 

Section 7. Home work. — On and after the effective date of this 
code all home work shall be prohibited. 

Section 8. No employee shall be recjuired as a condition of em- 
ployment : 

(a) To live in a house rented from an employer. 

(b) To trade at a store designated b^' an employer. 

(c) To accept as payment for wages anything other tlian cash or 
regotiable check, payable on demand. 

Article VI — Organization, Powders and Duties of the Code 

Authority 

organization and constitution 

Section 1. A Code Authority is hereby established to cooperate 
with the Administrator in the administration of this code and shall 
consist of seven members to be chosen by the industry through a fair 
method of selection, approved by the Administrator, and shall serve 
for a period of one year from the date of tlieir election. The Ad- 
ministrator, in his discretion, may appoint not more than three addi- 
tional members without vote, and without compensation from the 
industry, to serve for such period of time and to represent the Ad- 
ministi'ator or such group or groups as lie may designate. 

Skction 2. Vacancies in the ])ers()nnel of the Code Authority 
select('(l by the industry shall be filled through ap[)ointment by the 
Administrator upon nomination of the Code Authority. 

Sec'Hon 3. — Any trade or industrial association directly or indi- 
rectly participating in the activities of the Code Authority shall sub- 
mit ito the Administrator true copies of its articles of association, 
by-laws, regulations, and any amendments when made thereto, to- 
getliei- with such other information as to membership, organization, 



117 

and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

Section 4. No inequitable restrictions on admission to membership 
in the Lead Pencil Institute or any other trade association or organ- 
ized group, participating in the activities of the Code Authority 
shall be imposed, and any member of the industry shall be eligible 
for membership in any such trade association or organized group 
upon compliance with the provisions of the by-laws relating to mem- 
bership, provided that any person applying for such membership 
shall, in addition to the payment of such dues as are imposed upon 
and paid by all other members, accept a reasonable and equitable 
share of the cost of code administration. Such members of the in- 
dustry who do not choose to become members of any trade association 
or organized group may participate in the activities of the Code 
Authority upon the paj'ment of such proportionate part of the cost 
of code administration as the Code Authority, subject to the Admin- 
istrator's approval, shall prescribe as fair and equitable.^ 

Section 5. Nothing contained in this Code shall constitute the 
members of the Code Autliority partners for aii}^ purpose. Nor shall 
any member of the Code Authorit}^ be liable in any manner to any 
one for any act of any other member, officer, agent or employee of 
the Code Authority. 

Section 6. Powers and duties. — The Code Authority shall have the 
following further powers and duties, the exercise of which shall be 
reported to the Administrator, and shall be subject to his right, on 
review, to disapprove any action taken by the Code Authority, incon- 
sistent with the provisions of this code or of the Act. 

(a) To administer the provisions of this code and the regulations 
of the Code Authority which are approved b}' the Administrator. 

(b) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To obtain from members of the industr}'^, monthly reports 
upon forms to be provided by it, under a code name to be known 
only to the member and the agenc}^ appointed by the Code Authority, 
complete and accurate statistics showing the members' production, 
new orders, unfilled orders, shipments and inventory of finished and 
processed stock of industry products, samples delivered free, and 
returned goods, net and gross prices received, upon a classification 
of products into commodity groups as adopted by the Code Author- 
ity. In addition the industry shall furnish such other information 
and reports as the Administrator may deem necessary for the pur- 
poses recited in Section 3 (a) of the Act, which information shall be 
submitted by members to such administrative and/or governmental 
agencies as the Administrator may designate ; provided that nothing 
in this Code shall relieve any member of the industry of any existing 
obligations to furnish reports to any governmental agency. No indi- 
vidual reports shall be disclosed to any other member of the industry 
or any other party except to such governmental agencies as may be 
directed by the Administrator. 

(d) To use the Lead Pencil Institute and such other agencies as 
it deems proper for the carrying out of any of its activities provided 

1 See paragraph 2 of order approving this Code. 



118 

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. 

(e) To make recommendations to the Administrator for the co- 
ordination of the administration of this Code with such other codes, 
if any, as may be related to the industry. 

(f ) To secure from members of the industry an equitable and pro- 
portionate payment of the reasonable expenses of maintaining the 
Code Authority and its activities. 

(g) To cooperate with the Administrator in regulating the use 
of any N.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 fair trade prac- 
tice provisions to govern members of the industry in their relations 
with each other or with other trades/industries and to recommend 
to the Administrator measures for industrial planning, including 
stabilization of employment. 

Article VII — Trade Practice Rules 

1. After the effective date of the simplification-standardization 
schedule provided for in Article VIII, no member of the industry 
shall sell or deliver any wood cased lead pencils at lower prices 
than 25 per cent discount from list, to any dealer or distributor who 
sells foreign made lead pencils which do not conform to the standard 
specifications contained in such schedule and which were imported 
after the effective date thereof.^ 

2. No member of the industry shall represent or stamp any pencil 
or mark its box, sleeve, or container with any degree of lead hardness 
which does not correspond to the grading commonly applied to that 
lead by the pencil manufacturer ; provided, however, that this regu- 
lation shall not apply to types in which degraded pencils are per- 
mitted by the standard specifications, in which a standard marking 
is particularly specified. 

3. No member of the industry shall use espionage in any manner, 
form, or degree against any other member as to the processes, opera- 
tions, methods, and other trade secrets of any other member. 

4. No member of the industry shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influenc- 
ing or rewarding the action of any employee, agent or representative 
of another in relation to the business of the employer of such em- 
phjyce, the principal of such agent or the represented party, with 
or without the knowledge of such employer, principal or party. 
This commercial bribery provision shall not be construed to prohibit 
free and general distribution of articles commonly used for adver- 
tising except so far as such articles are actually used for commercial 
brib<!ry as herein above defined. 

5. The Code Authority sliall submit recommendations for regu- 
lations concerning sampling. After the approval thereof by the 
Administrator, no wood-cased lead pencils shall be given away free 

»Sfe paragniph 2 of Order approving this Code. 



119 

or sold at reduced prices as an inducement to the sale of other pencils 
or other commodities except as provided therein. 

6. Whenever the sale of wood-cased lead pencils is combined by the 
manufacturers with the sale of other commodities, peiK^ils shall not 
be given away free nor sold at reduced prices as an inducement to or 
reward for the sale of other commodities, or vice versa. Nor shall 
such special prices be quoted upon a combination oifer as to repre- 
sent a variation from the normal selling price of either or any com- 
modity joined in such oiler. 

7. No member of the industry shall buy, trade in, exchange, or 
receive from any dealer, distributor, or consumer any pencils made 
by any competing member as an inducement to the sale or listing for 
sale of his own products or as a part of the understood terms of sale 
of such products. 

8. No member of the industry shall discriminate in price between 
different purchasers of the same type, except on account of difference 
in quality and quantity. 

9. No member of the industry shall give, allow, or pay any secret 
discount, rebate, refund, or credit, no matter in what form or at 
what time, as a means of effecting or concealing price discrimina- 
tions or of extending special preferences or privileges to particular 
customers. 

10. Whenever any prospective purchaser of wood-cased lead pen- 
cils shall invite competitive bids upon specifications which call for 
any recognized quality or standard of pencil, no member nor any 
member's agent, shall use any endeavor to sell to such purchaser, 
pencils of a quality or standard lower than that provided in the 
specifications as indicated by the class and type in the standardization 
schedule. 

11. No member of the industry shall accept or fill, any contract or 
order for wood-cased lead pencils which is not specific as to the 
quality and price of pencils to be furnished thereunder, and/or 
which continues beyond twelve months after the date when the order 
is placed and/or which does not specify the quantity which the 
manufacturer is obligated to furnish and the purchaser is obligated 
to accept. '' Requirements " contracts which are definite as to time 
but indefinite as to quantity or definite as to quantity but indefinite 
as to time, shall not be accepted. 

12. No member of the industry shall make or authorize, permit, 
or tolerate any action, statement, or representation on the part of 
any of his employees which falsely discredits or defames a competing 
member, his reputation or credit, or his products. 

13. No member of the industry shall imitate, simulate, or other- 
wise endeavor to appropriate to his own advantage, the brand, name 
or number of any member's competing pencil or pencils, his trade- 
marks, the design, marking, color, or other distinguishing feature of 
his sleeve, band, box, package, or carton. The Code Authority shall 
establish an appropriate, impartial agency with which the above 
brands, names or numbers and other distinguishing features shall 
be registered and shall establish appropriate rules and regulations by 
which this impartial agency shall administer this paragraph and 
arbitrate any disputes arising thereunder. 



120 

14. No member of the industry shall knowingly, under any pre- 
text Avhatever. issue or allow to be issued any invoice or other docu- 
ment relating- to the sale of wood-cased lead pencils and purporting 
to state the terms of such sale, which does not accurately and com- 
pletely exhibit the exact terms of such sale as they are understood in 
their finality, by the parties thereto. 

15. No member of the industry shall imitate, simulate, or copy 
any new, distinctive, or unique type of pencil which any member 
may produce, for a period of twelve (12) calendar months after 
such pencil is put on sale. Provided, however, that this regulation 
shall be ineffective unless and until the producer of such novelty no- 
tifies the Code Authority of the introduction of such novelty. The 
Code Authority shall promptly notify each member of the introduc- 
tion of such novelty, send each member a sample thereof, and call 
attention to this regulation. The Code Authority shall establish an 
appropriate impartial agency with which said new, distinctive or 
unique types of pencils shall be registered and shall establish appro- 
priate rules and regulations by which this impartial agency shall ad- 
minister this paragraph and arbitrate any disputes arising there- 
under. 

16. No member of the industry shall sell or ofEer to sell any wood 
cased lead pencils to any export house except upon conditions guar- 
anteeing that the order is for bona fide consumption in the market 
for which the goods are ordered. 

17. No product of this industry shall be accepted for return by 
any member of this industry, except such return is due to the fault 
of a member by reason of defects in production or packing or errors 
in shipment unless such member's approval has been obtained in 
advance of such return, and then only in exchange for other mer- 
chandise unless credit conditions justify a credit memorandum to 
cover. When the return of merchandise by customers for exchange 
is approved by the member, if the return is for other reasons than 
the fault of the member by reason of defects in production or pack- 
ing or errors in shipment, a reconditioning charge of not less than 
ten (10%) per cent of the original net value of the returned goods 
sliall be made, and charge shall also bo made for transportation 
both ways. 

18. No member of the industry shall pay or make any allowance, 
directly or indirectly, for space in catalogs, house organs, or any 
other form of publicity issued by a customer or prospective cus- 
tomer; provided, that electros for one-color printing may be fur- 
nished free by any member to any of his or its customers for the 
jiurpose of representing the member's product in the customer's 
catalog or other publicity material. 

19. No menibei' of the industry shall furnish printed pages or 
insert sheets, whether in color or in black and white, for customers' 
catalogs for distribution to their trade. Pages for insertion in the 
catalogs of customers' salesmen, printed in black and white; only, 
may l)e furnished without charge. 

20. No member of the industry shall particij)ate in or make any 
conti-ibution, either in money or goods, to any cooperative ncAvspaper 
advei'tising jjic^nioted oy carried on by his or its customers. Each 



121 

/' 

member shall conduct his or its advertising independent of any par- 
ticipation with or by his or its distributors. 

21. No member of the industry shall make any contribution, con- 
cession, discount, rebate, or consideration of any nature, for erecting 
and/or maintaining or painting any outdoor advertising device or 
sign used or to be used by a customer. Advertising material may 
be furnished free for wincTow and indoor display but no merchandise 
shall be given free or sold at reduced prices or loaned for display 
or advertising purposes. 

22. No member of the industry shall furnish a.nj sample display 
equipment except the standard sample cards, flaps, or folders. No 
mounted sample boards of any kind shall be furnished customers for 
display in their sample rooms under any pretext whatever. 

23. No permanent, refillable display cases for wood-cased lead 
l^encils shall be furnished to any customer for less than one ($1.00) 
dollar net for each gross of fall capacity. 

24. No prizes in money or goods shall be offered or given to trade 
conventions, trade outings, or outings or celebrations of customers, 
by members or their officials, representatives or salesmen. This pro- 
vision on prizes shall not be construed to prohibit free and general 
distribution of articles other than pencils commonly used for adver- 
tising unless such articles are actually used as prizes. 

25. The use of color in printing member's or member's sales agent's 
catalogs shall be restricted to the cover and back pages of such cata- 
logs. The inside pages shall be uniform in ink and paper throughout. 

2G, No member and no member's representative shall make any 
exhibition or display of his or its products at any trade convention 
or meeting of wholesale and/or retail dealers. Exhibits or displays 
may be made at special conventions or exhibitions, educational or 
otherwise, for the purposes of consumer information. 

Article VIII — Standards 

1. The Code Authority with the approval of the Administrator, 
shall have power to adopt a schedule for the simplification of the 
variety of industry products and for the standardization of specifica- 
tions for the prescribed classes and types of industry products and 
their packaging, including the desigiiation of types which may be 
sold as blanks and imprints or for advertising j^urposes. Such sched- 
ule Avhen approved by the Bureau of Standards of the Department 
of Commerce, and the Administrator, shall be distributed to all 
members of the industry whose addresses are known, with an effec- 
tive date fixed by the Code Authority. After such effective date, all 
members of the industry shall conform to the provisions of such 
schedule. 

Article IX — Classification or Members 

1. Class A members are those members of the industry each of 
whom has fifteen (15%) per cent or more of the total sales volume 
of the industry. 

2. Class B members are those members each of whom has more 
than five (5%) per cent and less than fifteen (15%) per cent of the 
total sales volume of the industry. 



122 

3. Class C members are those members each of whom has less than 
five (5%) per cent of the total sales volmne of this industry. 

Article X — Marketing Terms 

The approval of the following marketing terms is conditioned 
upon the continued availability of wood cased lead pencils to the 
public at the long established customary prices, viz. : one cent each, 
three for five cents ; two for five cents ; five cents each ; three for ten 
cents and ten cents each in reasonably relative qualities at these 
various prices. The members of the industry severally and collec- 
tively voluntarily invite the Administrator to and a,gi'ee that he may 
examine any or all of their books or records at any reasonable time 
to determine whether these marketing terms are being administered 
to effectuate the National Industrial Recovery Act. If the Adminis- 
trator shall find after reasonable notice and hearing, that these mar- 
keting terms are not being so administered the members of the in- 
dustry shall make such changes in sales policies and prices as may be 
necessary in default of which the approval of the following mar- 
keting terms may be rescinded. 

1. The member's list prices shall be the prices at which the mem- 
ber shall sell one gross of his or its products to the consumer. These 
list prices shall be subject to the deduction of the standard quantity 
discounts and credit terms. 

2. The member's list prices shall include free delivery on ship- 
ments of any quantity to New York City and shall include free 
delivery throughout the balance of the domestic market only when 
the weight of shipment is one hundred (100) pounds or more. Any 
transportation charge in excess of the minimum freight rate on 
such shipments shall be paid by the buyer, as shall all charges for 
delivery on shipments weighing less than one hundred (100) pounds, 
except shipments to New York City. Freight charges shall not be 
prepaid by members, and when allowable as hereinbefore provided, 
shall be deducted by customers upon remittance for merchandise. 

3. Each member shall, within ten days after the effective date of 
this code, file with the Code Authority a gross price list prepared by 
liim in conformance Avith the requirements in the code and of Article 
X, showing liis current prices and the standard discounts and terms 
of payment. Subject to the provisions of paragraph 4, these price 
lists shall be effective immediately upon filing. 

4. No member shall sell or quote in his or its price list or other- 
wise, any product of the industry at a price, which less the appli- 
rable standard discounts, sliall be less than the fair minimum price 
tliereof as ascertained by the Code Autliority with the approval of 
the Administrator. Notliing in this provisi(m or in any other pro- 
vision of tliis code s])all be construed so as to permit the determina- 
tion of minimum prices for any pencils retailing at tlie rate of more 
than five cents each. 'J'hc Code Authority shall reject any price 
list whidi does not conform to the provisions of this paragrai)h, and 
so notify tlie member filing it. Until it is corrected, such price list 
shall be ineffective and any sales made by such member Avhich do 
not conform to an effective price list on file with the Code Authority, 
shall be deemed an unfair method of competition. 



123 

5. Revised price lists, with or without discount sheets, may be filed 
from time to time thereafter with the Code Authority bj' an}' mem- 
ber, to become effective subject to the provisions of paragraph 4, 
immediately upon filing. These price lists shall be available at rea- 
sonable hours to i^arties in interest. Revised price lists shall be 
subject to the same conditions as to minimum prices Avhich are pro- 
vided above foi- original price lists. 

6. No member shall sell an}- product of the industry at prices 
lower or discounts greater, or on more favorable terms of paj'ment 
than those on file at the office of the Code Authoritj' as above pro- 
vided. Provided that obsolete numbers, imperfect and damaged 
goods may be sold upon such terms and conditions as the Code 
x4uthority maj" specificalh- approve. 

T. The uniform standard terms of credit shall be sixtj- (GO) days 
net or two (2%) pov cent for cash in ten (10) days, or two (2%) 
per cent, ten (10) days E.O.IM. The spring dating practice on fall 
shipments is hereby abolished. The terms for fall dating on spring 
shipments shall be as follows: Orders may be taken from dealers 
(not consumers), including syndicates and chain stores (for ware- 
house shipments only), for shipment during April, May, June, and 
July upon invoices due and payable September 1st, subject to the 
standard two (2%) per cent, ten (10) days cash discount. Pay- 
ments made after September lOth are past due. Provided, however, 
that this advance dating privilege shall not be allowed by any 
Class A member on orders for single shipments of less than $100.00 
net value; or b}' any Class B member on similar orders for less than 
$75.00 net value; nor by auy Class C member on similar orders for 
less than $50.00 net value. Subsequent orders placed after April 1st 
for shipment before August 1st may be given the dating privilege 
provided the order amounts to the minimum quantities as above 
stated. 

8. The maxkuum quantity discount wdiich may be allowed by the 
member to the consumer on standard lines, and special imprints, 
not for advertising, shall be as follow\s: 1 to 4 gross, one kind or 
assorted, no discount ; 5 to 9 gross, one kind or assorted, 10 per cent 
off list; 10 to 24 gross, one kind or assorted, 15 per cent off list; 
25 to 49 gross, one kind or assorted, 20 per cent off list; 50 to 99 
gross, one kind or assorted, 25 per cent off list ; 100 to 499 gi'oss, one 
kind or assorted, 30 per cent off list; 500 gross and over, one kind 
or assorted, 331/^ per cent off list. 

(a) The quantity ordered for one shipment shall govern the 
application of the above schedule. When quotation is made on a 
stated minimum quantity, an order shall not be accepted for a 
smaller shipment except at the lower discount specified for such 
smaller quantity. 

9. The minimum terms at whicli the member shall sell pencils 
specially imprinted for advertising purposes shall be as follows: 
1,000 pencils (or 7 gross), nickel tip, list plus 60 per cent per gross; 
1,000 pencils (or 7 gross), all others, list plus 40 per cent per gi'oss. 

These are hereinafter referred to as the " base " : 
Less than 1,000, base per gross plus 10 per cent 
2,500 pencils, base less 5 per cent 
5,000 pencils, base less 8 per cent 



124 

10,000 pencils, base less 20 per cent 
25,000 pencils, base less 25 per cent 
50,000 pencils, base less 3314 per cent 
100,000 pencils or more, base less 40 per cent 

10. The member's lowest selling prices to dealers for standard 
lines and special imprints, not for advertising, shall be the effective 
list price filed as herein provided, less a maximum trade discount 
of 40 per cent off list and subject to the standard credit and cash 
discount terms, except in case of Class I, Type I, in which case the 
discount shall be 331/^ per cent off list. This standard trade discount 
is further subject to the provisions of paragraph 14 of Article X; 
provided, however, that commencing January 1, 1935, when a deal- 
er's purchases of industry products during the previous calendar 
year from a Class A member are less than $200.00 net or from a 
Class B member are less than $150.00 net or from a Class C member 
are less than $100.00 net, the member shall sell to the dealer at no 
more than the following quantity discounts : 1 to 4 gross, assorted, 
20 per cent off list; 5 gross and over, assorted, 25 per cent off list. 
Nothing contained in this provision shall operate as a limitation 
upon the opening of any new account with the allowance of normal 
discounts if said new accounts are opened in accordance wnth the 
provisions of paragraph IG of this article. 

11. The Code Authority, with the approval of the Administrator, 
may establish an additional scale of cumulative discounts based on 
the dealer's or distributor's entire annual purchase of industry prod- 
ucts from all members of the industry combined, the payment of 
which by the members shall not constitute a violation of the mini- 
mum price provisions of Article X. Each member may pay this 
additional discount at the rate ascertained by the Code Authority, 
upon tlie amount of his individual sales to the particular dealer or 
distributor. 

12. Blank pencils for imprinters of advertising pehcils shall not 
be sold to the general trade but directly only to recognized distrib- 
utors of advertising pencils, whose names shall be filed with the Code 
Authority. With reference to the sale of blank pencils for imprint- 
ing for advertising purposes, it shall be the duty of the Code Author- 
ity with the approval of the Administrator, to establish an orderly 
system and method of distribution and sale of blank pencils, directed 
to the prevention of unfair competition in the advertising pencil 
business or between blank pencils and the standard commercial prod- 
ucts of the industry. 

To all recognized distributors of advertising pencils, the maximum 
discounts on blank pencils for shipment at one time, shall be as 
follows : 

1 to G gross, no discount 

7 to 49 gross, 10 per cent off list 

50 to 99 gross, 20 per cent off list 

100 to 499 gross, 25 per cent off list 

500 to 999 gross, 33% per cent off list 

1000 gross and over, 40 per cent off list. 

13. The Code Authority, with the approval of the Administrator, 
shall prescribe such rules and regulations as it shall deem proper by 



125 

which the question as to whether any purchaser or prospective pur- 
chaser is a sales agent, dealer, distributor, or consumer, shall be 
determined and shall arbitrate all such disputed questions. The 
Code Authority shall notif}' each member of the industrj' of such 
rules, regulations, and decisions in this regard. Any such decision 
may be referred to the Administrator upon petition, and his decision 
shall be final. 

14. No member of the industry shall sell and deliver or contract 
to sell and deliver, to any dealer, distributor or agent, any industry 
product including imprints, which retail at the rate of 5 cents or 
less each, at a greater discount than 25 per cent off list unless and 
until such member shall secure from such dealer, distributor or 
agent, an agreement substantially in the form previously approved 
by the Code Authority and by the Administrator, obligating the 
dealer, distributor or agent — 

(a) that he or it will not without the consent of the Code Author- 
ity, sell such product including imprints, to any consumer at a price 
which at the time of tlie sale thereof shall be less than the price 
at which the member might then sell such product including im- 
prints, to the consumer : 

(b) that the dealer, distributor or agent will not sell such product 
including imprints, to any other dealer, distributor or agent for 
resale to consumers, except upon a like agreement between the dealer 
and/or distributors and/or agents, and 

(c) that tlie failure of compliance with such agreement by the 
dealer, distributor or agent, shall oj^erate as a modification of the 
said agreement by which the applicable discount rate shall be reduced 
to 25 per cent oflf list. 

Any dealer, distributor or agent which executes, delivers and 
complies with the provisions of such agreement, shall be quoted or 
sold by the member at a discount of 40 percent oft' list. 

The failure b}' the member to comply with the provisions of this 
paragraph sliall be a violation of the code. 

15. In all sales of trade-marked or branded products to dealers for 
resale, members and dealers may. by contract, require purchasers to 
resell such products at the manufacturer's effective prices and dis- 
counts and ma}' further require that if such products are thereafter 
sold by such purchaser for resale, the original purchaser shall 
incorporate a similar provision in the contract with the purchaser 
for resale.^ 

16. Class A members shall not open any new account with a dealer 
who or which has not bought since January 1. 1931, from the member, 
upon less than a minimum quantity for shipment at one time, or 
$100.00 net worth of wood-cased lead pencils; Class B members snail 
not open a new account with any such dealer upon less than a 
minimum order for shipment at one time, of $75.00 net worth of 
wood-cased lead pencils; Class C members shall not open a new 
account with any such dealer upon less than a minimum order for 
shipment at one time, of $50.00 net worth of wood-cased lead pencils. 

17. No member shall evade the minimum price provisions of this 

* See paragraph 2 of Order approving this Code. 



126 

code by submitting a bid on fractions of a gross at a price which is 
not extended to the exact common fraction of a cent in event that the 
division does not figure out to an even cent. 

18. No manufacturer shall ship to any direct factory accounts on 
an order for less than $15.00 net worth of pencils, at the maximum 
discount off list price. Orders for smaller quantities shall be billed 
at twenty-five (25%) percent off list. 

19. Except as provided in paragraph 6 of Article X, no member 
shall sell any imprints, jobs, seconds, blanks, pencils for premiums, 
advertising pencils, or pencils purchased by manufacturers of other 
products to be used in connection therewith, in the domestic market 
which includes Hawaii and Puerto Rico, at any lower prices or on 
any other terms or conditions than those which are applicable to 
the standard commercial numbers of the equivalent class and type. 

20. After the adoption of the standardization schedule in accord- 
ance with this code, no pencil types shall be sold to distributors in 
blank form or as consumer or advertising imprints which are not 
provided for therein. No pencils shall be so imprinted unless the 
standard specifications so provide. 

21. The prices to dealers for dealer imprints shall not be less 
than the prices for the equivalent types of standard brand pencils 
to dealers, 

22. No member shall sell special imprints not for advertising, nor 
member's standard brands back stamped, on orders for single ship- 
ments and billing of less than 1,000 gross of Type 1, Class 1, or 100 
gross of Type 3, Class 1, or 25 gross of any other type of Class I, 
Class IV or Class V, or 50 gross of any type in any other class, nor 
less than 15 gross of lead degrees 2, F, or 3, nor less than 5 gross of 
lead degrees 1 and 4. 

23. Nothing contained in Article X shall apply to export trade to 
the Philippine Islands or any foreign country or its possessions. 

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 provisions 
of subsection (b) of Section 10 of the Act, from time to time to cancel 
or modify any order, approval, license, rule, or regulation issued 
under said Act, and this Code is further subject to right of the 
Administrator to review and veto any action of the Code Authority 
he deems inconsistent with the Act or the Code. 

2. This Code, except as to provisions recpiircd 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 through the Code Autliority to the Administrator and 
such notice and hearing as he shall specifyj 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 
monopoHes or monopolistic practices, or to eliminate, oppress, or dis- 
criminate against small enterprises. 



127 
Article XIII — Price Increases 

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

Article XIV — Effective Date 

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

Ai)proved Cotle No. 291. 
Rojristry No. 1647-01. 

o 



Approved Code No. 292 
CODE OF FAIR COMPETITION 

FOR THE 

CHILLED CAR WHEEL INDUSTRY 

As Approved on February 17, 1934 



ORDER 



Approving Code of Fair Competition For the Chilled Car 

Wheel Industry 

An application having been duly made pursuant to and in full 
compliance mth the provisions of Title I of the National Industrial 
Recoveiy Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Chilled Car Wheel 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 purposes 
of said Title of said Act ; and do hereby order that said Code of Fair 
Competition be and it is hereby approved subject to the following 
condition: that the continued participation of the Association of 
Manufacturers of Chilled Car Wheels in the Code Authority, after 
thirty days from the effective date of this Code, shall be contingent 
upon its amending its constitution and by-laws to the satisfaction of 
the Administrator. 

Hugh S. Johnson, 
Administrator J or Industrial Recovery. 

Approval recommended: 
W. A. Harriman, 

Division Administrator. 

Washington, D.C, 

February 17, 1934. 

41000° 376-104 34 (129) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Chilled Car Wheel Industry, as revised after the Public Hearing 
conducted thereon in Washington, D.C., on December 20, 1933, in 
accordance with the provisions of the National Industrial Recovery 
Act. 

PROVISIONS AS TO HOURS AND WAGES 

The Code provides for a normal maximum 40-hour week and 
8-hour day except as hereinafter provided. 

Employees may work 48 hours per week for any 6 weeks in any 26 
weeks' period, but overtime shall be paid at the rate of time and one- 
half for all hours in excess of 8 a day or 40 a week. 

Traveling salesmen, traveling inspectors, and persons employed in 
an executive, managerial, or supervisory capacity or in experimental 
work, who earn at least $35 a week, are exempt from the hour 
provisions. 

Watchmen may be employed 56 hours in any one week. 

Power plant employees may be employed forty-five (45) hours in 
any one week, nine (9) hours in any one day. 

In the case of infrequent delays in foundry operations which are 
caused by power failures, breakdowns, or furnace run-outs, in order 
to protect life and property maximum hours may be extended for the 
time necessaiy to take care of the products in process for that day. 
(The Industry has stated that this is very seldom necessary and when 
it does occur, the time required is almost never in excess of one hour.) 

Provision is made for one day of rest in seven an^ the standard 
clause regarding employment by several employers is incorporated in 
the Code. 

The standard minimum wage rate is 40 cents per hour with a 
differential which allows a minimum of 32 cents in the following 
Southern States: North Carolina, South Carolina, Georgia, Alabama, 
Mississippi, Louisiana, Virginia, Tennessee, and Texas. 

Clerical and office employees shall not be paid less than $15 per 
week, provided office boys and girls may be paid not less than 80% 
of tliis wage and shall constitute not more than 3% of the total number 
of employees. 

P^mployers shall make equitable adjustments for all employees 
receiving more than the minimum and the Code Authority will report 
all sucli iuljusttnents to the Administrator. 

The minimum rate shiiU i\\)\)\y to mH employees regardless of what- 
ever basis upon which they may be compensated. Evasion of the 
provisions of the Code through reem|)loymcnt is piohibited. 

No person under 16 years of jige shall be emi)loycd, nor shall any 
one under eighteen be allowed to work at hazardous occupations. 

(130) 



131 

GENERAL STATEMENT 

This Industry is comprised of 23 concerns operating 47 foundries. 
It is a capital goods industry and is engaged in the manufacture of 
chilled iron wheels for locomotives, freight and railroad cars and street 
railway cars. Being dependent on the railroads for over 90% of its 
business, it naturally has been severely affected by the depression. 
Production in 1929 consisted of 2,926,000 wheels, which represented 
even at that time only 49.6% of capacity. Production in 1933 is 
estimated at only 1,100,000 wheels, a reduction of 63% from the 
1929 volume. 

In 1929 the Industry employed 4,439 persons; tliis number was 
decreased 30.5% in 1933 to 3,078. Average weekly payrolls for shop 
workers, however, are estimated to have been $109,763 in 1929, but 
only $25,727 in 1933, a decrease of 76.7%. This is more clearly 
illustrated by the fact that in comparing the above two years, it has 
been shown that the average hours per week per man for shop workers 
in 1929 were 57 as to 24 in July, 1933, and the average weekly earnings 
for shop workers in July, 1933, decreased 65% from 1929. 

The adoption of the President's Reemployment Agreement has 
restored wage rates to the 1929 level, but has not increased the number 
of employees as the effect was to increase only the number of working 
days per week. Reemployment in the Industry can only be accom- 
plished by a substantial increase in the demand for chilled car wheels. 
The immediate prospect of the advancement of Public Works Ad- 
ministration funds will favorably affect this Industry and should 
result in increased employment. Also, the market for chilled car 
wheels is becoming more and more potential in Russia. If the 1929 
rate of production is attained, this Code will directly increase employ- 
ment about 28% over the 1929 number of employees. 

The minimum rates contained in the Code will increase wage rates 
20% over July, 1933, and 2% over July, 1929. 

There is no provision for female employees. The reason for this 
is that there are no females employed in plant operations. 

FINDINGS 

The Deputy Administrator in liis final report to me on said Code 
having found as herein set forth and on the basis of all the proceedings 
in tliis matter: 

I find that— 

(a) Said Code is well designed to promote the policies and purposes 
of Title I of the National Industrial Recovery Act, including removal 
of obstructions to the free flow of interstate and foreign commerce 
which tend to diminish the amount thereof and will provide for the 
general welfare by promoting the organization of industry for the 
purpose of cooperative action among the trade groups, by inducing 
and maintaining united action of labor and management under 
adequate governmental sanctions and supervision, by eliminating 
unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by 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. 



132 

(b) Said Industry normally employs not more than 50,000 employ- 
ees; 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 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 v>dll not operate to discriminate against them. 

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

For these reasons, therefore, I have approved this Code, subject to 
the following conditions that the continued participation of the Asso- 
ciation of Manufacturers of Chilled Car Wheels in the Code Authority, 
after thirty days from the effective date of this Code, shall be con- 
tingent upon its amending its constitution and by-laws to the satis- 
faction of the Administrator. 
Respectfully, 

Hugh S. Johnson", 

Administrator. 
February 17, 1934. 



CODE OF FAIR COMPETITION FOR THE CHILLED CAR 
WHEEL 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 Compe- 
tition for the Chilled Car Wheel Industrj'^, and shall be the standards 
of fair competition for such Industry and shall be binding upon every 
member thereof. 

Article II^ — Definitions 

The term "Industry'' as used herein means and includes the manu- 
facture and sale of chilled car wheels for Railroad and Street Railway 
service or either of them and such related branches or subdivisions 
thereof as may from time to time be included under the provisions of 
this Code by the President after such notice and hearing as he may 
prescribe. 

The term "member of the Industry" means and includes any indi- 
vidual, partnership, association, corporation, or other form of enter- 
prise engaged in the Industry, either on his or its own behalf. 

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

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

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 

Section L Maximum hours. — No employee shall be permitted to 
work in excess of forty (40) hours in any one week except as hereinafter 
provided. A normal working day shall be eight (8) hours. 

Section 2. Exceptions ns to Hours. — 

(a) The maximum hours fixed in Section 1 above shall not apply for 
six (6) weeks in any twenty-six (26) weeks' period beginning January 
first and July first of each year, during which overtime shall not exceed 
eight (8) hours in any one 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) hours period, or in excess of 
forty (40) hours in any seven (7) day period. 

(b) The provisions of this Article shall not apply to traveling 
salesmen, traveling inspectors, or to persons employed in an execu- 
tive, a managerial, or supervisory capacity or in experimental work, 
who earn not less than at the rate of thirty-five dollars ($35.00) per 
week. 

(c) Watchmen shall not be employed in excess of fifty-six (56) 
hours in any one week. 

(133) 



134 

(d) Power plant employees shall not be employed in excess of 
forty-five (45) hours in any one week, or nine (9) hours in any one 
day. 

(e) Infrequent delays in foundry operations are caused by power 
failures, breakdowns or furnace run-outs and in order to protect life 
and property, the molten metal must be taken care of, and in such 
cases the maximum hours may be extended but not to exceed the 
time necessary to take care of the product in process for that day. 

(f) All employees shall have one day of rest in seven (7). 
Section 3. Employment by 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, exceeds the maximum permitted herein. 

Article IV— Wages 

Section 1. Minimum Wage. — No employee shall be paid less than 
forty (40) cents per hour, except as herein otherwise provided. 

(a) No employee shall be paid less than 32 cents per hour in the 
following states: North Carolina, South Carolina, Georgia, Alabama, 
Mississippi, Louisiana, Virginia, Tennessee, and Texas. 

(b) No person employed in clerical or office work (not including 
office boys and girls) shall be paid less than at the rate of $15.00 per 
week, provided that office boys and girls shall be paid not less than 
80% of such minimum wage, and shall not number more than 3% of 
the total number of employees of any employer. 

Section 2. Minimum Wage Rates by Occupation. — Within sixty (60) 
days from the effective date, each employer shall make or shall have 
made since June 16, 1933, such adjustment of rates of pay of employees 
receiving more than the minimum rates of pay provided in this Article 
as will maintain an equitable differential in rate schedules of such 
occupations and within ninety (90) days after the effective date 
thereof, the Code Authority shall report to the Administrator the 
action taken by all members of the Industry since the effective date 
in making such adjustment. 

Section 3. Piecework Compensation — Minimum Wages. — This 
Article establishes a minimum rate of pay which shall apply, irre- 
spective of whether an employee is actually compensated on a 
time-rate, piece-work, or other basis. 

Section 4. Evasion Through Reemployment. — No employee now 
employed at a rate in excess of the minimum shall be discharged and 
re-employed at a lower rate for the purpose of evading the provisions 
of tliis Code. 

Article V — General Labor Provisions 

Section 1. Child Labor Provision. — No person under sixteen (IG) 
years of age shall be employed in the Industry. No person under 
eighteen (18) years of age shall be employed in production operations 
including the manufacture and handling of tlic product. In any State 
an employer shall be deemed to have complied with this provision as 
to age if he shall have on file a certificate or permit duly issued by the 
Authority in such State empowered to issue employment or age cer- 
tificates or permits showing that the employee is of the required age. 



135 

Section 2. Provisions from the Act. — In compliance with Section 
7 (a) of the Act, it is provided: 

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

(b) That no emplo^^ce and no one seeking employment shall be 
required as a condition of employment to join any companj^ imion 
or to refrain from joining, organizing, or assisting a labor organization 
of his own choosing, and 

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

SecTiON 3. Reclassification of Employees. — No employer shall re- 
classify employees or duties of occupations performed, or engage in 
any other subterfuge for the piu'pose of defeating the provisions of 
the Act or of the Code. 

Section 4. State Laws. — No pro\Tisions in this Code shall supersede 
any State or Federal law which imposes more stringent requirements 
on employers as to age of employees, wages and hours of work than 
are imposed by this Code. 

Section 5. Posting. — All employers shall post complete copies of 
this Code in conspicuous places accessible to all employees. 

Article VI — Organization of the Industry 

Section 1. Meetings of Members of the Industry. — Meetings of 
members of the Industry may be called and held a/t any time upon 
ten days' notice given by the Chairman of the Code Authority to the 
members of the Industry, which notice shall state the time and place 
of such meeting. 

Section 2. Members oj the Industry Entitled to Vote. — Each member 
of the Industry' who has assented to the provisions of this Code and 
has agreed to pay his pro rata proportion of expenses of the adminis- 
tration of the Code shall be termed "qualified member of the In- 
dustry" and only such member shall be entitled to participate in 
the selection of the members of the Code Authority. 

Article VII — Organization, Powers and Duties of the Code 

Authority 

Section 1. Organization. — There shall forthwith be constituted a 
Code Authority consisting of five (5) members of the Industry to be 
selected as hereinafter provided. In addition thereto there may be 
from 1 to 3 members without vote, to be appointed by the Adminis- 
trator, whose terms of office shall be so arranged that they do not 
expire at the same time and who shall be given notice of all meetings 
of the Code Authority. 

The members of the Code Authority shall be selected as follows: 
Four of the members shall be elected at a meeting of the members 
of the Industry called for that purpose. The fifth member shall be 
the President of the Association of Manufacturers of Chilled Car 
Wheels. 



136 

Each member of the Industry who is quahfied to vote as herein- 
before provided shall have the right to vote in person or by his duly 
authorized proxy for the Industry members of the Code Authority. 

Election shall be by signed ballot and each qualified member of 
the Industry, so present or represented, shall be entitled to one 
vote for each member to be elected. An Industry member of the 
Code Authority shall be declared elected when he shall have received 
a majority vote, provided that such majority vote shall be votes of 
members of the Industry who collectively shall have shipped at 
least Yz of the number of Chilled Car Wheels for Railroad and Street 
Railway Service during the preceding calendar year. 

Each Industry member of the Code Authority shall be elected for 
a period of one year from the second Tuesday in October of each year 
and shall serve until his successor is elected and ciualified. The four 
(4) members of the Code Committee elected at a meeting of the 
members of the Industry on August 15, 1933 and the President of 
the Association of Manufacturers of Chilled Car Wheels at that date 
shall constitute the five (5) members of the Code Authority until 
their successors are elected. 

Any vacancy in the Code Authority shall be filled by majority 
vote of the members of the Code Authority at a meeting regularly 
called, and the member so chosen to fill such vacancy shall hold office 
until the next meeting of the members of the Industry. 

Meetings of the Code Authority shall be held at such time and place 
as may be designated by the Chairman upon five (5) days' written 
notice. 

The Secretary of the Code Authority shall keep all records under 
the Code, and, except as such Code Authority shall otherwise provide, 
shall collect, file and collate all statistics and other information 
required by the Code Authority for the proper administration of 
the Code.i 

Sec. 2. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. 

Article VIII — Administration of Code 

Section 1. The Code Authority shall have all the powers and 
duties conferred upon it as shall be necessary or proper to enable it 
fully to administer the Code and to effectuate its purpose, subject to 
compliance rules and regulations established by the Administrator, 
and may 

(a) For the purpose of keeping the President informed as to the 
observance or non-observance of tliis Code, and as to whether the 
Industry is taking appropriate steps to effectuate in all respects the 
declared policy of tlie National Industrial Recovery Act, require 
from any member of the Industry, in the event of complaint, duly 
certified reports in sucli form as may hereafter be required by the 
Government or any brancli or bureau thereof, provided, however, 
that nothing contained in this (\)de shall relieve members of the 
Industry from furnishing statistics and data required by other Govern- 
ment agencies. 

' See i»aragr:iph 2 of order approving this Code. 



137 

(b) Require such reports tlirough its Secretary from members of 
the Industry pertaining to the provisions of the Code as in its judgment 
may be necessary to advise it adequately for the administration and 
enforcement of the provisions of this Code. 

(c) Upon complaint of interested parties or upon its own initiative, 
make such inquir}^ and investigation into the operation of this Code 
as may be necessary and promptly report to the Administrator the 
nature of such inquiries and results of the investigations. 

(d) Make rules and regulations necessary for the administration 
and enforcement of the Code. 

(e) All information furnished to the Secretary of the Code Authority 
by any member of the Industry, pursuant to the administration of 
this Code shall be deemed confidential and shall not be disclosed to 
any member of the Industry in other than composite form, unless 
disclosure in detail shall be deemed to be necessary in the administra- 
tion of this Code. 

Section 2. The expense of administering the Code shall be 
assessed and collected by the Code Authority. The assessments for 
such expenses shall be made pro rata upon the members of the 
Industry assenting to this Code in proportion to the number of chilled 
car wheels for railroad and street railway service shipped by them 
during the preceding calendar year, and each such member shall be 
liable for his pro rata proportion of such assessments. 

Section 3. Review of Acts of Code Authorities. — If the Adminis- 
trator shall determine that any action of a code authority or any 
agency thereof is unfair or unjust or contrary to the public interest, 
the Administrator may require that such action be suspended for a 
period of not to exceed thirty days to afford an opportunity for 
investigation of the merits of such action and further consideration 
by such code authority or agency pending final action, which shall 
be taken only upon approval bj^ 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 dis- 
criminate against small enterprises. 

Article X — Unfair Practice 

Violation of any of the provisions of this Code, or amendments 
thereto or of any rules and regulations established thereunder is an 
unfair practice and shall be subject to the penalties provided in the 
National Industrial Recovery Act. The Code Authority shall 
recommend to the Administrator any fair trade practices it may deem 
necessary to govern members of the Industry in their relations with 
each other or other industries. 

Article XI — Amendments 

The Code may be amended at any time in the manner hereinafter 
provided. All amendments shall be proposed by members of the 
Industry or the Code Authority to the members of the Industry, and 
each amendment so proposed shall be submitted for approval to a 
meeting of the members of the Industry, especially called for that 



138 

purpose upon ten (10) days' notice; and a majority vote of the quali- 
fied members of the Industry present at the meeting in favor of the 
amendment shall be final provided the votes cast in favor of the 
amendment represent the vote of the members of the Industry who 
shipped at least one-tliird of the number of chilled car wheels for rail- 
road and street railway service during the preceding calendar year; 
such amendment when approved shall be submitted by the Code 
Authority to the Administrator for liis approval, and if approved by 
the Administrator shall become effective ten (10) days thereafter. 

Article XII — Cancellation or Modification 

Pursuant to subsection (b) of Section 10 of Title I of the Act, the 
President may from time to time cancel or modify any order, approval, 
license, rule or regulation issued under Title I of said Act. 

Article XIII — Duration 

This Code shall terminate June 16, 1935, or the earliest date prior 
thereto on which the President shall, by proclamation, or the Congress 
shall, by joint resolution, declare that the emergency recognized by 
Title I of the National Industrial Recovery Act has ended. 

Article XIV — Effective Date 

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

Approved Code No. 292. 
Registry No. 1414-01. 

O 



Approved Code No. 293 
CODE OF FAIR COMPETITION 

FOR THE 

GUMMING INDUSTRY 

As Approved on February 17, 1934 



ORDER 

AppRO^^NG Code of Fair Competition for the Gu:siming Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June IG, 19)33, for approval of a Code of 
Fair Competition for the Gumming Industry, and hearings having 
been duly held thereon and the annexed rei)ort on said Code, con- 
taining findings with respect thereto, having been made and directed 
to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including JExecutive Order Xo. G543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the 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 effective date of revised price lists or revised terms and condi- 
tions of sale be and they are hereby stayed pending my further 
order; provided further, that within ninety days I maj 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, 

Fehmiarij 17, 1931^. 

41091° 376-105 34 139 



REPORT TO THE PRESIDENT 

The President. 

The White Bouse. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Gumming Industry, conducted in Washington on October 
17, 1933 in accordance Avith the provisions of Title I of the National 
Industrial Recover}' Act. 

HOURS AND AVAGES 

This Code provides a 40 hour week for factory workers wnth a 
weekly tolerance of eight hours to be paid for as overtime. The 
usual exceptions are inade in regard to non-productive employees. 
Office emi)loyees 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 40c per hour for males and 35^ per hour for females. In the 
South the minimum wage rate for hourly paid employees is 35^ per 
hour for males and 30^ per hour for females. Office employees 
will receive a minimum wage of $10.00 per week in the North and 
$14.00 per week in the South. 

OPEN PRUE PLAN 

An open ])ri(e plan of selling is provided, and selling below cost, 
except to meet competition, is prohibited. 

OTHER PROVISIONS 

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

ECONOMIC EFFECT OF THK CODE 

The Iii(histry employed in 1929 about 800 persons and in May, 
Vd'.VA about 814 persons. The avei'age hours worked per week by 
factoiy cmijloyees increased from 44 in the first half of 1933 to 53 
in th<- week of July 9-15, 1933. The effect of the Code will be to 
employ approximately 250 additional workers. 

Because of the i)ercentage of workers receiving less than the pro- 
Pos<m1 minimum wages tlic inci-easc in the total ])ayrolls of the 
industiy, as a result of the Code, will be about 6%. 

riNi)ix(is 

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; 

(140) 



141 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Indnstrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanctions and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agi'icultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

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

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant association 
is an industrial association truly representative of the aforesaid 
industry; and that said association imposes no inequitable restric- 
tions on admission to membership therein. 

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

(e) The Code is not designed to and will not eliminate or oppress 
small enteri^rises 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 dniinistrator. 
February 17, 1934. 



CODE OF FAIR COMPETITION FOR THE GUMMING 

INDUSTRY 

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

Article I — Definitions 

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

" Industry " — The manufacture of gummed paper U\pes and stay 
papers and gummed cloth tapes, both plain and printed; gummed 
flat papers and such special gummed paper and gummed cloth prod- 
ucts as are natural affiliates. 

" Member " — A natural person, partnership j corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, receiver, or other form of 
enterprise, 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 — Or(janizatk)X and Administration 

Section 1. The members of the Executive Connnittee of the 
Gummed Industries Association, together Avith such other person or 
persons as the Administrator may designate, are hereb}^ constituted 
The Code Authority of the Industry. The members of the Code 
Authority designated by the Administrator shall have no vote and 
shall serve without compensation from the Industry. 

Section 2. The said Association shall im[)()se no inequitable re- 
strictions on membership and shall file with the Administrator 
certified copies of any amendments of its By-Laws relating to eligibil- 
ity or admission to membership in said Association, or relating to the 
method of selection of the members of such Executive Connnittee 
which said Association may hereafter adopt. 

Section 3. The Administrator nuiy at any time prescribe a dif- 
feieut method for selecting tlie Industry members of the Code 
Authority, and thereafter, such nx'uibeis shall be chosen in the 
manner so prescribed. 

Skctiox 4. The Code Autiioiily is charged generally with the duty 
of adniinisteiing this Code. It' 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 Administra- 
tor may require that such action be suspended to afford an oppor- 
tunity for investigation of tlie mei'its of such action and further con- 
sideration by the Code Authority or agency pending final action 

(142) 



143 

which shall not be effective unless the Administrator approves or 
unless he shall fail to disapprove after thirty (30) daj'^s notice to 
him of intention to proceed with such action in its original or 
modified form. 

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

Section 6. The Code Authority shall have power to investigate 
alleged violations of this Code and acts or courses of conduct by any 
member Avhich 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. 

Section T. The Code Aiithorit}' 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 of Labor 

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

SCHEDULE OF WORKING HOURS 

(a) Watchmen: Fifty six (56) hours in any one week but not 
more than six (6) days in any seven (7) day period; or fifty six (5G) 
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 w^eeks, 
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, electric 
and hydro-electric operators: One hundred and sixty eight (1G8) 
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 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 pro- 
vided that all time worked in excess of the maximum 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. 

(e) Emploj'ees regularly engaged in a managerial or executive 
capacity and their personal secretaries, foremen and supervisors, 



144 

receiving thirty five dollars ($35.00) 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. 

Section 2. No limitation contained in said schedule shall apply to 
employees of any class when engaged in emergencj'' repairs or emer- 
gency maintenance work occasioned by breakdowns or involving pre- 
lection 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. 

Section 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 
maximum permitted herein. 

Article IV — Wages 

Section 1. The minimum rate of wage of any laborer, mechani- 
cal Avorker or artisan employed in any plant, mill or factory, or on 
work connected with the oi^eration 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 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. 
Section 2. The mininnun rate of wage for all other employees 
shall be as follows : 

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

(b) In the Soutliern 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 35^ pei- hour in the South. 

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

Section 4. Female employees performing substantially the same 
work as male employees, shall receive the same rate of pay as male 
employees. The (^ode Authority shall, within ninety (90) days after 
the effective flate of this Code, file with the Administrator a descrip- 
tion of all occupations in the Industry in which both men and women 
are employed. 

Section 5. The wage rates of all employees receiving more than 
the minimum rates herein prescribed shall be reviewed and such 
adjustments, if any, made therein as are equitable in the light of all 



145 

the circumstances, and within sixty (60) days after the efFective date 
hereof, the Code Authority shall report to the Administrator the 
action taken by all members of the Industry under this Section. 

Section 6. Office boys and girls under eighteen (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. 

Section 7. A jjerson 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 desigiuited by 
the United States Department of Labor shall have issued a certih- 
cate authorizing his employment on such basis. Each member shall 
file witli the Code Authority a list of all such persons emploj^ed by 
him. The provision of this Section requiring a certificate of author- 
ity shall not become effective until sixty (60) da^^s aftei- the effective 
date of this Code. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industry. No person under eighteen (18) years of 
age shall be employed at operations or occupations which are hazard- 
ous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator within sixty (60) days after the effec- 
tive date of this Code a list of such operations ancl 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 employ- 
ment or age certificates or permits, showing that the employee is of 
the required age. 

Section 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 nuitual aid or protection. No em- 
ployee and no one seeking employment shall be required as a con- 
dition of employment to join any company union or to refrain from 
joining, organizing, or assisting a labor organization of his own 
choosing. Employers shall comply with the maxinuim hours of 
labor, minimum rates of pay and other conditions of employment, 
approved or prescribed by the President. 

^ Section 3. 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. 

Section 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. 



146 

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

Section 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. Stanclards 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. 

Section 7. 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 Ad- 
ministrator. The Code Authority shall also submit to the Admin- 
istrator, within six (6) months after the effective date of this Code, 
a plan for the stabilization and regularization of employment. 

Section 8. The manufacture or partial manufacture of any pro- 
duct of the Industry in homes shall be prohibited. 

Article VI — Accounting — Selling 

Section 1. The Code Authority shall, as soon as practicable, form- 
ulate a standard method of accounting and costing for the Industry 
and submit the same to the Administrator. Any such method shall 
provide means for determining the price at which paper shall be 
charged to the converting division of a combined paper manufactur- 
ing and converting plant. When such method shall have been ap- 
proved by the Administrator, every member shall use an accounting 
and costing system which conforms to the principles of, and is at 
least as detailed and complete as, such standard method. 

Section 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 members of the Industry who manufacture such products 
not less than thirty (30) days prior to the date so fixed. 

Section 3. At least ten (10) 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 Avhich states the 
lowest price and the most favorable terms. 

Section 4. All such schedules shall be in such form as the Code 
Authority shall prescribe and shall contain all information neces- 
sary 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. 

Section 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, pro- 
vided, however, that any member who withdraws a schecfule without 
substituting a new schedule therefor shall be deemed to have filed a 



147 

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 here- 
under shall become effective five (5) 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. 

Section 6. The Code Authority shall prompth'^ supply all mem- 
bers 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 infor- 
mation 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 couformiuo; 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. 

Section 7. Xo 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 
determined in the numner 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 witlidrawal 
or revision upward of the price adopted. 

Section 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 
Industiy, 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 aiw prod- 
uct for wliich 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 sucli prod- 
uct then on file. 

Section 9. The Code Authority 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 non-members at the same time that they are sent to members.^ 

Section 10. No member shall sell ai\y 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. 

Section 11. Cost, for the purposes of this Article, .shall be deter- 
mined i)ursuant to the method of accounting and costing prescribed 
as provided in Section 1 hereof as soon as such method is adopted 
and approved, and theretofore pursuant to the method employed 

^ See pai'agraph 2 of order approving this Code. 



148 

by such member subject to such preliminary rules as the Code Au- 
thorit}'^ .shall from time to time jDrescribe with the approval of the 
Administrator. 

Section 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 information in regard to any quotation, order, contract 
or sale of any product of the Industry, including information as to 
specihcations, 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. 

Section 13. Nothing herein contained shall be construed to pre- 
vent the disposition of distress merchandise required to be sold to 
liquidate a defunct or insolvent business or or discontinued lines, 
damaged goods or seconds, in such manner, at such price and on 
such terms and conditions a,s the Code Authority and the Adminis- 
trator may approve. 

Section 14. Nothing herein contained shall be construed to pre- 
vent 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, stocks on hand, 
inventory both raw and finished, number of emploj^ees, 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 sub- 
ject to checking for the purpose of verification by an examination 
of the books, accounts and records of such member by any disin- 
terested accountant or accountants or other qualified person or 
persons designated by the Code Authority. 

Section 2. Except as otherwise provided in the Act, or in this 
Code, all statistics, data and informati(m filed or required in ac- 
cordance 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 de- 
termine for the currcct publication of Industry statistics to members. 

Section 3. The Code Authority shall make such reports to the 
Administrator as he may from time to time require. 

Section 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. 
Nothing contained in this Code shall relieve any member of any 
existing obligations to furnish reports to any Government Agency. 



149 

Article YIII — ^Moxopolies 

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

Article IX — Recommendations 

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

(a) For the establishment of additional rules of Fair Trade Prac- 
tices for the Industry and for the modification of its Trade Customs, 
and the enforcement tliereof. 

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

(c) For dealing with any otlier 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 cliange in the method of 
choosing such members. 

Section 2. For the purpose of assisting the Code Auth(n'ities of 
the Paper Manufacturing and^/or Oonvertdng Industries in the 
adjustment 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 Industiies 
and shall report its recommendations to the Administrator. 

Section 3. Rccouimendations made pursuant to Sections 1 and 2 
liereof when approved by the xVdministrator sliall have the same 
force and effect as other provisions of this Code. 

Article X — Tr-\de Practices 

Section 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) ISIembers of the Industry sliall not practice deceptioji in 
regard to that which is sold or its selling price by false or mislead- 
ing description, statement, record, or undisclosed consideration. 

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

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

(d) Members shall not wilfully induce or attempt to indiu'e the 
bi'each of a competitor's contract. 

(e) No member shall give, permit to be given, or directly offei' to 
give, anything of value for the purpose of influencing or rewarding 
the action of any employee, tigent, or representative of an(jther in re- 
lation to the business of the employer of such employee, the principal 
of such agent or the re]n-esented party, without the knowledge of 
such employer, principal or party. The foregoing provisions shall 



150 

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) iS^o 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 i^rovisions of this Code shall apply to and affect only that part 
of his business which is included in this Industry. 

Section 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. 

Section 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 
Administrator be modified and eliminated as changes in circum- 
stances or experience may indicate. 

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

Section 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. 293. 
Registry No. 401-08. 



o 



Approved Code No. 294 
CODE OF FAIR COMPETITION 

FOR THE 

GUMMED LABEL AND EMBOSSED SEAL 
INDUSTRY 

As Approved on February 17, 1934 



ORDER 



Approving Code of Fair Competition for the Gummed Label and 
Embossed Seal Industry 

An application havinp; been duly made ]:)ursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1938. for approval of a Code of 
Fair Competition for the Gunnned Label and Embossed Seal 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 b}' Executive Order of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of said 
Title of said Act ; and do hereby order that said Code of Fair Com- 
petition be and it. is hereby approved ; ]3rovided, however, that the 
provisions of Article VI, Sections 2 to 9 inclusive, insofar as they 
prescribe a waiting period betAveen 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 hereb}' 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, 
Adtninistrator for Industtial Recovery. 

Approval recommended : 
Geo. L. Berry, 

D ivisio n A d?) linh trator. 

Washington, D.C. 

Fehruanj 17, 193^. 

41004°— 3T6-10G 34 (151) 



REPORT TO THE PRESIDENT 

The President, 

The WMte House. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Gummed Label and Embossed Seal Industry, conducted 
in Washington on October 18, 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 non-productive emploj^ees. 
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 350 per hour for females. In the South 
the minimum wage rate for hourly paid employees is 35^ per hour 
for males and 300 per hour for females. Office employees will re- 
ceive 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 v/ith such 
statistical data as he may require. 

ECONOMIC EFFECT OF THE CODE 

The Industry employed in 1929 approximately 1,300 persons. Al- 
though the number of plants increased by 15 between 1928 and 1932 
the number of workers in July 1933 had decreased to a probable 
1,200 who Morked an average of 47 hoiu's per week as of the Aveek 
ending July 15. The effect of the Code will be to employ about 100 
additional persons. 

From figures submitted by 18 plants in the Industry approximately 
32% of the male workers and 35% of the female workers received 
less than the proposed wages during the Aveek ending July 15, 1933. 
The total increase in the payrolls of the Industry as a result of the 
Code will be slightly more than 10%. 

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; 

(152) 



153 

I find that : 

(a) Said Code is well designed to promote the policies and 
purposes of Title I of the Xational Industrial Recovery Act, includ- 
ing removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and 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 consumj)tion of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of laboi-. and 
by otherwise rehabilitating industry. 

(b) Said Industry normally emploj-s not moie than 50,000 
emplo3^ees; and is not classified by me as a major industry, 

(c) The Code as approved comjjlies 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 Sei-tion 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 inecpiitable 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 Avill 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 ajiproved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
February 17, 1934. 



CODE OF FAIR COMPETITION FOR THE GUMIklED 
LABEL AND EMBOSSED SEAL 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. 

Artigle I — Definitions 

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

" Industry " — The manufacture and processing of gummed labels 
and embossed seals. 

"Member" — A natural person, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, receiver, or other form of 
enterprise, 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 Gummed 
Label and Embossed Seal Association, together with such other per- 
son or persons as the Administrator may desigTiate, are hereby con- 
stituted the Code Authority of the Industry. The members of the 
Code Authority designated by the Administrator shall have no vote 
and shall serve without compensation from 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 prescribed. 

4. Tlie Code Authority is charged generally with the duty of 
administering this Code. If the Administrator shall determine that 
any action of the Cocte Authority, or any agency thereof, may be 
unfair or unjust or contrary to the public interest, the Administra- 
tor may require that such action be suspended to afford an oppoilu- 
nity for investigation of the merits of such action and further con- 
sideration 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 actifm in its original or modified 
foini. 

(154) 



155 

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 contrarj- to the i^olicj' 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 Indu-^try. where the costs of 
executing such contracts are increased through the application of 
the provisions of the Act or of the Code. 

Article III — Hours of Labor 

1, Employees in the Industr}- shall not be required or permitted 
to work hours in excess of the limits prescribed in the following 
schedule : 

SCHEDULE OF WORKING HOURS 

(a) Watchmen: Fifty-six (56) hours in an}- 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 as not less than time and one-third. 

(c) Engineers, firemen, electricians, filter plant employees, elec- 
tric and hydro-electric 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 factoi'v 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 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) Euiployees 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. 



156 

2. No limitation contained in said schedule sliall apply to em- 
ployees 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 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 maximum, 
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 sub-division (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, 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 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 400 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, piece-work or other basis. 

4. Female employees performing substantially the same work 
as male employees, shall receive the same rate of pay as nuile em- 
ployees. The Code Authority shall within ninety (90) days after 
the effective date of this Code file with the Administrator a descrip- 
tion of all occupations in the Industry in which both men and 
women are employed. 

5. The wage rates of all employees receiving more than the mini- 
mum rates herein prescribed shall be reviewed and such 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 imder this Section. 

6. Office boys and girls under 18 years of ago, 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 



157 

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. 

Article V — General Labor Pro\t[sions 

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 em- 
ploj'er shall be deemed to have complied with this provision as to 
age if he shall have on file a certificate or permit duly signed by the 
authority in such State empowered to issue employment or age cer- 
tificates or permits, showing that the employee is of the required age. 

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. Emploj^ers 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 worlang 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 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. 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. 



158 

The Code Authority shall also submit to the Administrator within 
six (6) months after tlie effective date of this Code, a plan for the 
stabilization and regularization of employment. 

8. The manufacture or partial manufacture of any product of 
the Industry in homes shall be prohibited, provided however that 
members of the Industry who are now emplojdng home workers 
shall have until May 1, 1934, to adjust their operations. 

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- 
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 In- 
dustry 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 thirty (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 pertain- 
ing to a single order, a commitment for future delivery, or a con- 
ti-act. All such original schedules shall become effective (m 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, 
however, that any member who withdraws a schedule without sub- 
stituting a new schedule tlierefor sliall be deemed to have filed a 
schedule confoi'ming 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 five days after the date of filing, pro- 
vided, however, that an increased price may become effective at such 
eaiiier date as the member filing the same shall fix. 

G. The Code Authority shall j)romi)tly sup])ly all members of the 
Iiidusliy who manufacture any i)articular product with copies of all 
Sfh('(hd('s, revised schedules, and notices of withdrawal, which per- 
tain to such product. Imnu'diately ui)on receipt of information 
relative to the withdraw'al of a i)rice 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 



159 

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 notifj^ the Code Authority that he 
adopts as his own the schedule of such other member. In the latter 
event, he shall be deemed to have filed a revised schedule conforming 
to the revised schedule of such other member. 

7. No such schedule of prices and terms of sale filed by any member, 
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 by another designated member. Such adoption 
shall become automatically void upon the withdrawal or revision 
upward of the price adoj^ted. 

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 non-member 
requesting them, copies of any price schedules which have been filed 
with it. Such price schedules shall be made available to non-mem- 
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 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 with the approval of the Administrator. 

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 
information in regard to any quotation, order, contract, or sale of 
any product of the Industry, including information as to specifica- 
tions, quantities, price, conditions of storage, transportation or de- 
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 
disposition of distress merchandise required to be sold to liquidate 
a defunct or insolvent business or of discontinued lines, damaged 

^ See paragraph 2 of order approving this Code. 



160 

goods or seconds, in such manner, at such price and on 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 
tliis Code. 

Article VII — Reports and Statistics 

1. Each member shall prepare and file with an impartial agent 
designated b}' 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, 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, ac- 
counts and records of such member by any disinterested accountant 
or accountants or other qualified person or persons designated by the 
Code Authority. 

2. Except as otherwise provided in the Act, or in this Code, all 
statistics, data and information filed or required in accordance with 
the provisions of this Code shall be confidential and the statistics, 
data and information of one member shall not be revealed to 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 
sliall 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 
statistical information as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the Act. Nothing con- 
tained in this Code shall relieve any member of any exi.sting obliga- 
tions to furnish reports to any Government Agency. 

AiniCLE VIII — ]M0X0P0LTES 

1. No provision of tliis Code shall be so apj>lied 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 
A(bninistrator recommendations based on conditions in the Industry 
which will tend to effectuate the operation of this Code and the 
policy of the Act, and in particular along the following lines: 

(a) For the establishment of additional rules of Fair Trade Prac- 
tices for tlie Industry and for the inodification of its Trade Customs, 
and the enfoi'cement thereof. 



161 

(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 
report its recommendations to the Administrator. 

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

Article X — Tkade 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, extension of stated 
credit and secret rebates. 

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

(d) Members shall not willfullj' 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 prin- 
cipal of such agent or the represented party, Avithout 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 Industiy 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 
Industry, shall be regarded as a part of this Industry. 



162 

3. Such of the provisions of this Code as are not required to be 
inchided therein by the Act, may, with tlie approval of the Admin- 
istrator, be modified and eliminated as changes in circumstance or 
exjierience 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- 
Adsions 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 b}^ him upon his aj^proval 
thereof, 

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



Approved Code No. 294. 
Registry Xo. 404-09. 



o 



Approved Code No. 295 
CODE OF FAIR COMPETITION 

FOR THE 

WATERPROOF PAPER INDUSTRY 

As Approved on February 17, 1934 



ORDER 



Approving Code of Fair Competition for the Waterproof 

Paper Industry 

An application having been duly made pursuant to and in full 
compliance with the pro\asions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Waterproof Paper Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings wdth 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 comphes in all respects with the 
pertinent provisions and will promote the polic}^ and purposes of said 
Title of said Act; and do hereby order that said Code of Fair Competi- 
tion be and it is hereby approved; provided, however, that the pro- 
visions of Article VI, Sections 2 to 9 inclusive, in so far as they pre- 
scribe 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; 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, 

February 17, 1934. 

41083* 376-107 34 (163) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report of the hearing on the Code of Fair Competition 
for the Waterproof Paper Industry, conducted in Washington on 
October 20, 1933, in accordance ^vith the provisions of Title I of the 
National Industrial Recovery Act. 

HOURS AND WAGES 

Tliis 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 non-productive employees. 
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 35^!^ per hour for females. In the South 
the minimum wage rate for hourly paid employees is 35^ per hour 
for males and 30«^ 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 pro^dded, and selling below cost, 
except to meet competition, is proliibited. 

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 approximately 650 persons and in 
July, 1933 approximately 450 persons, in a total of 28 plants, who 
worked an average of 46 hours per week. The effect of the Code will 
be to employ about 100 additional persons. 

Because of the percentage of male and female workers receiving less 
than the wage rates of 40^ and 35^ per hour the total increase in 
payrolls as a result of the Code will be about 17%. 

FINDINGS 

The Deputy Administrator in his final report to nie 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 

(164) 



165 

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 imdue re- 
striction 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 
rehabrlitating industry. 

(b) Said Industry normally employs not more than 50,000 employ- 
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 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 in- 
dustrial association truly representative of the aforesaid industry; 
and that said association imposes no inequitable restrictions on ad- 
mission 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 17, 1934. 



CODE OF FAIR COMPETITION FOR THE WATERPROOF 
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 the following waterproof paper 
products: 

(a) Paper and paper board combined, saturated or coated with 
bituminous material. 

(b) Combinations of paper or paperboard with cotton or burlap, 
or other methods of reinforcement, combined, saturated or coated 
with bituminous material. 

(c) Crinkled or crepcd papers, either w^aterproofed or unwater- 
proofed, except creped tissue, paper towels, and paper creped on a 
paper machine. But not to include roil roofing and not to include any 
creped papers or textile reinforced papers sold by the manufacturer of 
such materials in the form of fabricated baglike articles such as covers, 
liners or bags, as distinguished from sheets or rolls. 

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

"Act." — Title I of the National Industrial Recoveiy 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 
Waterproof 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 mem- 
bers of the Code Authority designated by the Administrator shall 
have no vote and shall serve without compensation from the Industry. 

Section 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 eligibil- 
ity or admission to membership in said Association, or relathig to the 
method of selection of the members of such Executive Committee 
which said Association may hereafter adopt. 

Section 3. 'J'he Administrator may at any time i)rescribe a difl'er- 
ent method for selecting the Industry members of the Code Authority, 

(166) 



167 

and thereafter such members shall be chosen in the manner so pre- 
scribed. 

Section 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, may 
be unfair or unjust or contrary to the public interest, the Administra- 
tor 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 (30) days notice to liim 
of intention to proceed wath such action in its original or modified 
form. 

Section 5. The expenses of administering tliis Code shall be bo ne 
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 tliis Code, 

Section 6. The Code Authority shall have power to investigate 
alleged violations of tliis 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 ineft'ective tliis Code and to 
report the same with recommendations to the Administrator. 

Section 7. The Code Authority is hereby constituted the agency 
to endeavor to effect, by arbitral proceedings or otherwise, adjust- 
ments 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 

Section 1. Employees in the Industry shall not be required or 

f)ermitted to work hours in excess of the limits prescribed in the fol- 
owing schedules: 

schedule of working hours 

(a) Watchman. — 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, 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, electric and 
hydro-electric operators. — One hundred and sLxty-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 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 operation oj 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 



168 

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, further, that no em- 
ployee 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, Joremen 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 peiiod 
of eight (8) consecutive wrecks. 

Section 2. No limitation contained in said schedule shall apply 
to employees of any class when engaged in emergency repairs or 
emergency n\aintenance 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. 

Section 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 
maximum permitted herein. 

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 of any such plant, mill or factory shall 
be as follows: 

(a) In the Northern zone, which shall consist of all of 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 Vir- 
ginia, Tennessee, North Carohna, South Carolina, Georgia, Florida, 
Ahibania, Mississippi, Louisiana, Arkansas and Texas. 

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

Section 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 tlie provisions of this Section 
shall be i)aid at the rate of not less than 40^ per liour in the North and 
35^ per hour in the South. 

Section 3. This Article estal)Iishes a minimum rate of pay which 
shall apply irrespective of whether an em])l<)yee is actually compen- 
sated on time-rate, piece-work, or other basis. 

Section 4. Female emi)loyees performing substantially the same 
work as male employees, shall receive the same rate of pay as male 



169 

employees. The Code Authority shall within 90 days after the effec- 
tive date of this Code file with the Administrator a description of all 
occupations in the Industry in which both men and women are 
employed. 

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

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 de- 
scribed in Section 2 hereof may bo employed at a wage of not less 
than 80% of the minimum prescribed by said Section, provided 
that at least one such ofTice boy or girl may be employed by each 
member. 

Section 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 certifi- 
cate 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 — General Labor Provisions 

Section 1. 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 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 cer- 
tificates or permits, showing that the employee is of the required age. 

Section 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 employee 
and no one seeking employment shall be required as a condition of 
employment to join any company union or to refrain from joining, 
oiganizing, or assisting a labor organization of his own choosing. 
Employers shall comply ^dth the maximum hours of labor, minimum 
rates of pay, and other conditions of employment, approved or pre- 
scribed by the President. 

Section 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, 



170 

sanitary or general Avorking conditions or insurance or fire protection, 
than are imposed by this Code. 

Section 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. 

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

Section 6. Every employer shall make reasonable provisions for 
the safety and health of Ms 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 witliin 
six (6) months after the effective date of this Code. 

Section 7. 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 Ad- 
ministrator. The Code Authority shall also submit to the Adminis- 
trator within six (6) months after the effective date of this Code, a 
plan for the stabilization and regularization of employment. 

Section 8. The manufacture or partial manufacture of any product 
of the Industry in homes shall be prohibited. 

Article VI — Accounting — Selling 

Section 1. The Code Authority shall, as soon as practicable^ 
formulate a standard method of accounting and costing for the 
Industry and submit the same to the Administrator. Any such 
method shall provide means for determining the price at which 
paper shall be charged to the converting division of a combined 
paper manufacturing and converting plant. When such method 
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. 

Section 2. The Code Authority miay 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 sliall be announced to all 
known members of the Industry who manufacture such products not 
less than 30 days prior to the date so fixed. 

Section 3. At least ten days prior to such date, every such member 
shall file with tlie Code Authority a schedule of prices and terms of 
sale for all such i)roducts 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 favoral)lc terms. 

Section 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 i)erson 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 efi'ective on the 
date fixed by the Code Authority as provided in Section 2 hereof. 



171 

Section 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, however, that any member who withdraw^s 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 schedide at an}' time thereafter on file which states the lowest 
price and the most favorable terms. Any schedule or notice filed 
hereunder shall become elective five daj's after the date of filing, 
provided, however, that an increased pric« may become eft'ective at 
such earlier date as the mejnber filing the sam.e shall fix. 

Section 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 eft'ective 
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. 

Section 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 
determined in the maimer provided in Section 11 hereof, provided, 
however, that any member may by notice to the Code Authority 
adopt as his own a lower price tiled by another designated member. 
Such adoption shall become automatically void upon the withdrawal 
or revision upward of the price adopted. 

Section 8. No member who shall have filed a price, or adopted as 
his own a price filed by another member for any product of the Indus- 
try, shall sell such product for less than such price or upon terms or 
conditions more favorable than stated in such price schedule. No 
member who shall have failed to file a price for any product 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. 

Section 9. The Code Authority 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 
non-members at the same time that they are sent to members. ^ 

Section 10. No member shall sell any product of the Industry 
for which no open price plan is in efTect at less than the cost thereof 
to such member, determined as provided in Section 1 1 hereof, except 
to meet the price of a competitor whose price does not violate such 
Section. 



See par^raph 2 of order approving this Code. 



172 

Section 11. Cost, for the purposes of this Article, shall be deter- 
mined pursuant to the method of accounting and costing prescribed as 
provided in Section 1 hereof as soon as such method is adopted and ap- 
proved, and theretofore pursuant to the method employed by such mem- 
ber subject to such preliminary rules as the Code Authority shall 
from time to time prescribe with the approval of the Administrator. 

Section 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 infor- 
mation in regard to any quotation, order, contract, or sale of any 
product of the Industr}^, 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. 

Section 13. Nothing herein contained shall be construed to pre- 
vent 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 on such 
terms and conditions as the Code Authority and the Administrator 
may approve. 

Section 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, 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 
checking for the purpose of verification by an examination of the books, 
accounts and records of such member by any disinterested ac- 
countant or accountants or other qualified person or persons desig- 
nated by the Code Authority. 

Section 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 publication 
of Industry statistics to members. 

Section 3. The Code Autliority shall make such reports to the 
Administrator as ho may from time to time require. 

Section 4. In addition to information required to bo submitted to 
the Code Authority there shall bo furnished to Government Agencies 
such statistical information as the Administrator may deem necessary 



173 

for the purposes recited in Section 3 (a) of the Act. Notliing con- 
tained in this Code shall relieve any member of any existing obhgation 
to furnish reports to any Government Agency. 

Article VIII — Monopolies 

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

Article IX — Recommendations 

Section 1. The Code Authority may, from timo 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 practice 
for the Industry and for the modification of its trade customs, and the 
enforcement thereof. 

(b) For the establishment of j)lans 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 endan- 
ger the stability of the Industry and of production and employment. 

(d) For an increase or decrease in the number of Industry members 
of the Code Authority and/or for a change in the metliod of choosing 
Buch members. 

Section 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. 

Section 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 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 descrip- 
tion, 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 



174 

of such agent or the represented partj^, without the knowledge of such 
employer, principal or party. The foregoing provisions shall not be 
construed to prohibit free and general distribution of articles com- 
monly used for advertising except so far as such articles are actually 
used for commercial bribery as herein defined. 

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

Section 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. 

Section 3. Such of the provisions of this Code as are not required 
to be included thei'ein by the Act, may, with the approval of the 
Administrator, be modified and eliminated as changes in circumstances 
or experience may indicate. 

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

Section 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. 295. 
Registry No. 406-11. 

o 



Approved Code No. 296 
CODE OF FAIR COMPETITION 



FLUTED CUP, PAN LINER AND LACE PAPER 
INDUSTRY 

As Approved on February 17, 1934 



ORDER 



Approving Code of Fair Competition for the Fluted Cup, 
Pan Liner and Lace 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 Fluted Cup, Pan Liner and Lace 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 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 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 \\ithin 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, 

February 17, 1934. 

41080" 376-lH 34 (175) 



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 Fhited Cup, Pan Liner and Lace Paper Industry, con- 
ducted in Washington on November 2, 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 non-productive employees. 
Office employees are limited to an average of 40 hours per week over 
an eight week period. 

The minimum wage rate for hourly paid employees is 35ff per hour 
for males and 30^ per hour for females. Office emploj^ees will receive 
a minimum wage of $15.00 per week. 

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 approximately 550 persons and in 
the second quarter of 1933 ap])roximately 737 ])ersons. Factory em- 
ployees worlced an average of about 48 hours per week in both June, 
1929, and June, 1933. The effect of the Code will be to employ about 
140 additional persons. 

The total increase in payrolls, due to the proposed wage rates 
and additional emplovoos required as a result of the Code, \w\\\ be 
about 28%. 

FINDINGS 

The Deput}' Administrator in his final re])ort to ine on said Code 
liaving found as hciein set forth, and on tlu^ basis of all the proceedings 
in this matter; 

I find tliat: 

(a) Said Code is well designed to promote the ])()licios and purposes 
of Title I of the National Industrial Recovery Act, including removal 
of obstructions to tlie free flow of interstate and foreign commerce 

(176) 



177 

whicli 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 
increasing the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

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

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

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

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

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

For these reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator, 
February 17, 1934. 



CODE OF FAIR COMPETITION FOR THE FLUTED CUP, 
PAN LINER AND LACE PAPER INDUSTRY 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following is hereby estabUshed as a Code of Fair Com- 
petition 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: 

(a) Fluted paper products, such as, baking cups, eclair cases, finger 
bowl liners, sundae dish liners, manicure bowl liners, barber cups, bis- 
cuit cups, butter chips and pan hners. 

(b) Fluted candy cups from paper and other materials. 

(c) Flat paper pan liners. 

(d) Lace, linen, die-cut, perforated or embossed paper products, 
such as, doilies, box strips, candy box mats, shelf paper. 

(e) Paper chop holders and paper skewers. 

"Member" — A natural person, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, receiver, or other form of 
enterprise, 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 Chairman of each Division Executive Committee and one 
other elected member from each Division of the National Association 
of Fluted Cup, Pan Liner and Lace Paper Manufacturers, together 
with one member of the Industry not a member of the said Association 
designated unanimously by the four above named and approved by 
the Administrator, are hereby constituted the Code Authority of the 
Industry. In addition, the Administrator may appoint one or more 
persons to the Code Authority who shall have no vote and shall serve 
without compensation from 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 admission to 
membership in said Association, or relating to the method of selection 
of the membeis of such Executive Committee which said Association 
may hereafter adopt. 

3. The Administrator may at any time prescribe a diflercnt method 
for selecting the Industry members of the Code Authority, and there- 
after, such men)bers shall be chosen in the manner so prescribed. 

4. The Code Authority is charged generally with the duty of ad- 
ministering this Code. If the Administrator shall determine that any 

(178) 



179 

action of the 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 
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 Author- 
ity, 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 
cost of executing such contracts is 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 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 as 
not less than time and one-third. 

(c) Engineers, firemen, electricians, filter plant employees, electric 
and hydro-electric 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 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 operation of 
such plant, mill or factory: Eight (8) hoiu-s in any 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 maximum 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 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, 



180 

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 employees 
of any class when engaged in emergency repairs or emergency main- 
tenance 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 knoNvingly permit any employee to work for 
any time wiiich, when totaled with that already performed \^dth anoth- 
er employer or employers in this Industry, exceeds the maximum 
permitted herein. 

4. No female employee as included under paragraph (d) of Section 
1 of this Article shall be required or permitted to work between the 
hours of 7 p. m. and 7 a. m. 

5. No employee as included under paragraph (d) of Section 1 of 
this Article shall be required or permitted to work more than six (6) 
days in any seven (7) consecutive days. 

Article IY — Wages 

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 of anj- such plant, mill or factory shall be as 
follows: 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) Fifteen ($15.00) doUars per week. 

(b) Part-time employees covered by the provisions of this Section 
shall be paid at the rate of not less than 37}^ cents per hour. 

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 -w-ithLn ninety (90) days after the effective 
date of tliis Code fde 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 mini- 
mum rates herein prescribed shall be re\4ewed 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. 

G. Office boys and girls under eighteen (18) years of age, to the 
extent of no more than 5% of the total number of employees de- 
sciibed 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 offfce boy or girl maj" be employed by each member. 



181 

7. A person whose eamiiig 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 bj' 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 b^sis. 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 sLxty (60) days after the effective date of 
this Code. 

Article V — General Labor Provisions 

L No person under sixteen (16) years of age shall be emplo^'ed in 
the Industry. No person under eighteen (18) ye^rs 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 \nth this provision as to 
age if he shall have on file a certificate or permit duh' signed by the 
authority in such State empowered to issue employment or age cer- 
tificates or permits, showing that the employee is of the required age. 

2. Employees shall have the right to organize and bargain collec- 
tively tlu-ougli 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 acti\Tties for the purpose of 
collective bargaining or other mutual aid or protection. No emploj'ee 
and no one seeking employment shall be required as a condition of 
employment to join anj' companj' union or to refrain from joining, 
organizing, or assisting a labor organization of his own choosing. 
Emplo^^ers shall comply with the maximum hours of labor, minimum 
rates of pay, and other conditions of employment, approved or pre- 
scribed by the President. 

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

4. No emploj'er shall reclassify employees or duties of occupations 
performed or engage in any other subterfuge for the purjDose of defeat- 
ing 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 provisions for the safety 
and health of his employees at the place and during the hours of their 
employment. Standards for safety and health shall be submitted 
by the Code Authority to the Administrator within six (6) months 
after the effective date of this Code. 

7. The Code Authority shall make a study of conditions in the 
Industry to determine the feasibility of the adoption of a shorter 
working 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 



182 

six (6) months after the effective date of this Code, a plan for the 
stabiHzation and regulation of employment. 

8. 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 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 loiown members 
of the Industry who manufacture such products not less than thirty 
(30) days prior to the date so fixed. 

3. At least ten (10) 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, 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 become 
effective ten (10) days after the date of filing, provided, however, that 
an increased price nuiy l)ecome efl'ective at such earlier date as the 
member filing the same shall fix. 

6. The Code Authority shall promptly supply all mcjubers of the 
Industry who manufacture any particular product with copies of all 
schedules, revised schedules, and notices of withdrawal, which pertain 
to such })rr)duct. Inimedialcly upon receipt of information relative 
to the withdrawal of a price for any product, any juember 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 



183 

may notify the Code Authority that he adopts as his own the schedule 
of such other member. In the latter event, he shall be deemed to 
have filed a revised schedule conforming to the revised schedule of 
such other member. 

7. No such schedule of prices and terms of sale filed by any member, 
or in effect at any time, shall be such as to permit the sale of any 
product at less that 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. 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 non-member re- 
questing 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.^ 

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 employed by such 
member subject to such preliminary rules as the Code Authority shall 
from time to time prescribe with the approval of the Administrator. 

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 infor- 
mation 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 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 on 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. 



' See paragraph 2 of order approving this Code. 



184 

Article VII — Reports and Statistics 

1. Each member shall prepare and file with an impartial agent 
designated by the Code Authorit}^ 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, 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 infor- 
mation so furnished by any member shall be subject to checking for 
the purpose of veiification by an examination of the books, accounts 
and records of such member by any disinterested accountant or 
accountants or other quahfied 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 wdth 
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 pubhshed 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 pubhcation 
of industry statistics to members. 

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

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. Nothing contained 
in this Code shall reUeve any member of any existing obligations to 
furnish reports to any Government Agency. 

Article VIII — Monopolies 

1. No pro\'ision of this Code shall be so appUed as to permit monopo- 
lies or monopoUstic 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 Industry 
which will tend to efTectuate the operation of this Code and the pol- 
icy of the Act, and in particular along the following hncs: — 

(a) For the establishment of additional rules of Fair Trade Prac- 
tices for the Industry and for the modification of its Trade Customs, 
and the enforcement thereof. 

(b) For the establi.shment of plans to equalize production with de- 
mand, so that tlie interests of the Industry and the public may be 
properly served. 

(c) P'or dealing with any other inequality that may arise to endan- 
ger the stability of the Industry and of production and employment. 



185 

(d) For an increase or decrease in the number of Industry members 
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 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. 

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 comi)ly with the provisions thereof shall be a 
violation of this Code: 

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

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

(e) Members shall not wilfully injure by falsely defaming a competi- 
tor'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 knowledge of such 
employer, principal or party. The foregoing provisions shall not be 
construed to prohibit free and general distribution of articles common- 
ly 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 tliis 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. wSuch 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 circumstance or 
experience may indicate. 

4. This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions of 



186 

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 tliis Code or any condi- 
tions imposed b}^ 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. 296. 
Registry No. 407-07. 

o 



Approved Code No. 297 
CODE OF FAIR COMPETITION 

FOR THE 

ADVERTISING DISTRIBUTING TRADE 
As Approved on February 17, 1934 



EXECUTIVE ORDER 

Code of Fair Competition for the Advertising Distributing 

Trade 

An application having been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code of 
Fair Competition for tlie Advertising Distributing Trade, and hear- 
ings having been held thereon and the Administrator having rendered 
liis report containing an anal3^sis of the said Code of Fair Competi- 
tion together with his recommendations and findings with respect 
thereto, and the Administrator having found that the said Code of 
Fair Competition complies in all respects with the pertinent provi- 
sions of Title I of said Act and that the requirements of clauses (1) 
and (2) of subsection (a) of Section 3 of the said Act have been 
met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
tlie United States, pursuant to the authority vested in me by Title I 
of the National Industrial Recovery Act, approved June 16, 1933, 
and otherwise, do adopt and approve the report, recommendations 
and findings of the Administrator and do order that the said Code 
of Fair Competition be and it is hereby approved, subject to the 
following conditions : 

1. That for a period of 90 days from the effective date of this 
Code boj's of the ages of 14 and 15 may be employed for a period 
not to exceed three hours per day. All such work hours shall be 
between 7 a.m. and 7 p.m. and shall not conflict with the employees' 
hours of da}^ school. 

2. Application of the definition of '' worlving hours " in Article 
III, Section 5, is stayed for a period of 90 da3's from the effective 
date of this Code to afford the Code Authority an opportunity to 
study and recommend to the Administrator a plan whereby th«i 
interests of the carrier shall be better protected. 

41084° 37G-108 34 (187) 



188 

3. The effect of Article III, Sections 4 and 5, on the hours and 
rates of pay of office workers shall be reported to the Administrator 
within 90 days of the effective date of the Code in order to determine 
whether such hours and rates need be further limited. 

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

A dministrator. 

The White House, 

Fehrum^ 17, 1934- 



LETTEK OF TRANSMITTAL 



The President, 

The White House. 



INTRODUCTION" 



Sir : This is the report of the Administrator to the President on 
the application for, and public hearing on, a Code of Fair Competi- 
tion for the Advertising Distributing Trade, as proposed by the 
Code Committee representative of that business. The Code pre- 
sented herewith was revised by the Committee prior to the close of 
the public hearing on October IG, 1933. 

The hearing was conducted in Washington on October IG, 1933. 
Every person who requested an appearance was freely heard in 
accordance Avith statutory and regulatory requirements. 

There is no one national, thoroughly representative trade associa- 
tion for advertising distribution, but the members of the Trade, 
acting as a group, delegated authority to an elected Code Committee 
to draft and present a Code for the Trade. I have found no reason 
to question the truly representative character of said Committee and 
I believe that the Trade was accorded every reasonable opportunity 
to influence its decisions as evidenced by the fact that 1,2G2 distribu- 
tors formally endorsed the Code and apparently no distributor 
opposed it. 

DEFINITION 

Advertising distribution does not occupy a clearly defined place in 
the national cconom3^ yet the services rendered by distributing con- 
cerns require the employment of over 80,000 adult males and 
approximately $100,000,000 in gross business. The definition, as it 
appears in Article II, Section 1, of the Code, is the result of an 
exhaustive study of this Trade, its inherent and its competitive 
aspects. It embraces no productive functions, in the generally ac- 
cepted meaning; it is purely a service, available to anyone who 
"wishes to have his advertisements or samples broadcast in a certain 
place or region. Certain aspects of the non-utility operations of 
telegraphic communications companies have fallen within the defini- 
tion, but the definition, in conference with representatives of the 
telegraph companies, has been drawn to exclude so-called messenger 
service or the delivery of personal communications, so that 
competition will be entirely fair. 

Great care, also, was given to obviate any possibility that the 
definiton would cover any person whose own employees were engaged 
in delivering or distribution of his own matter. Some conflict arose 
between this Code and a proposed Code for so-called " shopping 
newspapers ". The name is misleading. A shopping newspaper, 
as was shown both at this and the Graphic Arts hearing, September 
20, 1933, is nothing more than a sheet in which the advertisements of 

(ISO) 



190 

more than one advertiser have been combined; it enjoys no paid 
circulation and is not individually addressed. Promiscuous distri- 
bution in a given neighborhood or region is clearly the province of 
the Advertising Distributing Trade to which shopping news- 
paj)ers should be no exception; and concerns which distribute such 
shopping newspapers should be accorded no competitive advantage 
over those which distribute other advertisements, the more so as it 
was shown that the former often undertake incidental distribution 
of other matter than shoj^ping newspapers. 

ECONOMIC AND STATISTICAL MATERIAL 

The Advertising Distributing Trade in 1932 furnished employ- 
ment to 85.000 persons, of which 80,000 were adult male carriers. 
There is considerable irregularity in the volume of business owing 
to its very nature, yet it affords work to a type of man who might 
find it difficult to obtain employment requiring greater skill or who is 
unfit for a sedentary or indoor occupation. It presents, however, 
greater stability than might be expected : In 1929, employees num- 
bered 95,000 or only 10,000 more than in 1932, and the gross business 
varied only fractionally. 

Exact data on wages are not available but the Code Committee 
stated that at present $2.00 was the maximum for a ten hour day 
and that in the South as little as $1.25 was being paid. 

RESUME OF THE CODE 

The proponents of the Code have established an average forty hour 
week or eight hours a day for carriers. The eifect of this provision 
will be to add one new man for each six now employed or 16%% 
which, granting a volume of business comparable to 1932, should 
return employment to 1929 figures or better. 

It was proposed to establish a 25^ minimum rate of pay in the 
South and 300 elsewhere, which in no case would be less than a 20% 
gain over existing rates and in many cases substantially greater. 
Whereas there was reason to believe that 250 for tlie South was not 
only adequate but well in lino Vvith the rates of pay of more pros- 
l^erous times, it was raised to 27V2^ to meet the representations of the 
Labor Advisor in behalf of a 300 minimum for the whole countr3\ 
To the greatest practicable extent, provisions with regard to labor 
were included with the intent of improving the conditions and 
continuity of work. 

The administration of the Code follows closely tlic lines recom- 
mended by the N.R.yV. Legal Division. Inasmuch as no ti-ade asso- 
ciation is available to undertake administration, it is provided that 
the Code Conniiittee of the Trade carry on for thirty days to allow 
time for it to arrange an election of the Code Authority by partici- 
pating Trade members as provided in Article IV, Section 6. 

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; 



191 

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, includ- 
ing removal of obstructions to the free flow of inter-state and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanction and supervision, 
by eliminating unfair competitive practices, b}^ promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial 
and agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of section 10 thereof; and that the applicant group 
is a trade group truly representative of the aforesaid Trade ; and that 
said group imposes no inequitable restrictions on admission to mem- 
bership therein. 

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

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

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

For these reasons, I recommend that the Code be approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
February 17, 1934. 



CODE OF FAIR COIMPETITION FOR THE ADVERTISING 
DISTRIBUTING TRADE 

Article I — Purposes 

To effectuate the policies of Title I of the National Recovery Act, 
the following provisions are established as a Code of Fair Competi- 
tion for the Advertising Distributing Trade, and shall be the stand- 
ard of fair competition for such Trade and shall be binding upon 
every member thereof. 

Article II — Definitions 

Section 1. The terms " the Advertising Distributing Trade " or 
" the Trade " shall mean and include any business of distributing, 
either direct to the home, place of business, or hand to hand, free of 
charge to the recipient, of any printed matter or other material in 
quantities of fifty units or more, including but without limitation, 
telephone directories, advertising literature, or other matter, free 
copies of newspapers and publications, or samples; but shall not 
mean or include individuals, firms or corporations distributing their 
own matter with employees compensated by and directly in their 
employ, but shall mean and include individuals, firms or corpora- 
tions distributing free advertising literature, papers, or other adver- 
tising matter wdiose primary purpose or function is to advertise the 
products or services of another or others; and shall not mean or 
include the business of delivering personal communications or any 
matter individually addressed by the sender, except where the quan- 
tity and/or continuity of such addressed matter approximates a 
promiscuous or general distribution in any given precinct, district, 
section or locality of any city, town or village. 

Section 2. The term " member of tlie Trade " shall mean and 
include anyone engaged in the Advertising Distributing business as 
an employer or on his own behalf. 

Section 3. The term " employee " shall mean and include any 
person engaged in the Distributing Trade in any capacity receiv- 
ing compensation for his services, irrespective of the nature or 
method of payment of such compensation, except a member of the 
trade. 

Section 4. The term " employer " shall mean and include any- 
one l)y whom any em])loyee is compensated or (■m})loye(l. 

SEcrnoN f). The term '^ cairicr " shall mean any employee whoso 
work consists of the manual delivery or distribution of the matter 
to be distril)uted. 

Section G. The terms " President ", "Act ", and "Administrator ", 
as u.sed herein, shall mean, respectively, the President of the United 
States, the National Industrial Recovery Act, and the Administrator 
for Indu.strial Recovery. 

(192) 



193 

Section 7. Tlie terms herein defined, Tvherever used in this Code, 
shall, unless the context shall otherwise clearly indicate, have the 
respective meanings in this Article set forth. The definition of 
any such term in the singular shall apply to the use of such term 
in the plural or vice versa. 

Article III — LAiitm 

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

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

Section 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. 

Section 4. The wages that shall be paid by any member of the 
Trade to any employee employed in the States of Arizona,^ New Mex- 
ico, Texas, Oklahoma, Arkansas, Louisiana, Mississippi, Tennessee, 
Alabama, Georgia, Florida, South Carolina, North Carolina, and 
Virginia shall be not less than twenty-seven and one-half cents 
(271/20) an hour; and to any employee employed in all other States 
in the United States and the District of Columbia shall be not les3 
than thirty cents (300) an hour. 

Section 5, No carrier shall work or be permitted to work an aver- 
age of more than forty working hours per week in any six months* 
calendar period nor more than forty-eight hours in any one week 
during such period, nor more than eight hours in any one day. The 
maximum hours per day herein specified shall not apply to an emer- 
gency, but in any such special' case, at least time and one-third shall 
be paid for all time worked in excess of eight hours per day. 
" Working hours " as used herein, shall mean and be calculated from 
the time that a carrier arrives at the designated locality where he is 
to distribute and commence distribution, to the time that he ceases 
such distribution at such designated locality. Transportation ex- 
pense incident to the w-ork of"a carrier shall be furnished by the 
employer. 

No other employee (except executives and outside salesmen who 
receive more than $35.00 per week) shall work or be permitted to 
work an average of more than forty-four hours per week in any cal- 
endar nionth, nor more than forty-eight hours in any week, nor more 
than nine hours in any one day. The maximum hours per day herein 
specified shall not apply to an emergency, but in any such special 
case, at least time and one third shall be paid for all time worked in 
excess of nine hours per day.^ 

^ Soo paragraph 2 of order approving this Code. 



194 

Section 6. No member of the Trade shall employ a carrier during 
any portion of any day at less than a wage equivalent to that which 
such employee would be entitled to receive for three working hours; 
provided, however, that in case of inclement weather this provision 
shall have no application. The hours worked by any employee dur- 
ing each day shall be consecutive (except that in case of inclement 
weather this shall not apply to carriers), provided that an interval 
not longer than one hour may be allowecl and deducted from work- 
ing hours for each regular meal period. Any rest period which may 
be given employees shall not be deducted from such employee's 
working time. 

Section 7. No member of the Trade shall employ in the Trade 
any person under the age of sixteen (16) years nor anyone under 
eighteen (18) years of age at operations or occupations hazardous 
in nature or detrimental to health. The Code Authority shall submit 
to the Administrator within ninety (90) days after the effective date 
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 empow- 
ered to issue emplojanent or age certificates or permits, showing that 
the employee is of the required age.- 

Section 8. No emploj^ee whose full time weekly hours for the 
four (4) weeks ended June 17, 1933 are reduced by the provisions of 
this Code by twenty per cent (20%) or less shall have his or her 
full time weekly earnings reduced. No employee whose said full 
time weekly hours are reduced by the provisions of this Code in 
excess of twenty per cent (20%) shall have his or her said earnings 
reduced by more than fifty per cent (50%) of the amount calcu- 
lated by multiplying the reduction in hours in excess of twenty per 
cent (20%) by the hourly rate. 

Section 9. This Article establishing minimum rates of wages re- 
gardless of whether an emploj^ee be compensated on a time rate, 
piece work, or other basis. 

Section 10. Every carrier shall be paid at least once a week. 

Section 11. Employers shall not reclassify employees or duties of 
occupations performed by employees or engage in any other subter- 
fuge so as to defeat the purposes of the Act or of this Code. 

Section 12. Each employer shall post in conspicuous places full 
copies of this Code. 

Section 13. Female employees performing substantially the same 
work as male employees shall receive the same rates of pay as male 
emi^loyees. 

Article IV — Administration 

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

Section 1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of twelve (12) representa- 
tives engaged in the Advertising Distributing Trade, or such other 
number as may be approved from time to time by the Administrator, 
elected by a fair method of selection to be approved by the Admin- 

* Sec paragraph 2 of order apiiroving this Code. 



195 

istrator, and not more than three members without vote who may 
be appointed by the Administrator, in his discretion. 

The Code Authority shall be elected within thirty days of the 
effective date of this Code; in the interim the Code Committee of 
the Advertising Distributing Trade shall arrange for such election 
and shall serve as the Code Authority. 

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

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

Section 2. The Code Authority shall have the following duties 
and powers. 

(a) To adopt by-lav.s and rules and regulations for its procedure 
and for the administration and enforcement of the Code, in accord- 
ance with the powers herein granted, and to submit the same to the 
Administrator for his approval together with true copies of any 
amendments or additions when made thereto, minutes of meetings 
when held, and such other information as to its activities as the 
Administrator may deem necessary to effect the purposes of the Act. 

(b) To make such rules and regulations and gather such data, 
statistics and information as may be necessary in the administration 
of this Code; 

(c) To appoint and remove, and to fix the compensation of such 
employees, accountants, attorneys, and officers as it shall deem 
necessary or proper for the purpose of administering the Code; 

(d) To appoint from time to time such committees as it may deem 
necessary or proper in administering the Code, and to delegate to 
such committees generally or in particular instances such of the 
powers and duties of the Code Authority as such Authority shall 
deem proper or necessary, provided nothing herein shall relieve the 
Code Authority of its duties or responsibilities under this Code. Any 
member of any such committee may be a member of the Code Author- 
ity, or an officer or director of a member of the Trade, or a person not 
having any official connection with any member of the Trade, as the 
Code Authority shall deem proper. 

Section 3. The Code Authority shall 

(a) Make a study of labor conditions within the trade in order 
to determine the feasibility of the adoption of a shorter working 
week and adjustments in the rates of pay, and to investigate particu- 
larly the conditions of vs'ork involving a carrier and shall, within 



196 

three months after the effective date of this Code make a recommen- 
dation and a report of its findings to the Administrator. 

(b) Present to the Administrator recommendations based on con- 
ditions in the Trade as they may develop from time to time which 
will tend to effectuate the operation of the provisions of this Code; 

(c) Formulate and submit for the approval of the Administrator 
a uniform cost system upon which, after such approval, the cost of 
distribution service shall be based ; 

(d) Cooperate with the Administrator in making investigations 
as to the functioning and observance of any provisions of this Code, 
at its own instance, at the request of the Administrator, or on com- 
plaint of any person affected, and report its findings to the Admin- 
istrator. The Code Authority shall be the effective agency to bring 
to the attention of and cooperate and aid the proper authorities under 
the National Industrial Recovery Act to enforce the Code and to 
effectuate its purpose and the policy of the Act. 

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

Section 5. Tlie Code Authority may utilize the facilities of and 
cooperate with any and all trade associations or organizations, na- 
tional, regional or local, in the Advertising Distributing Trade in such 
manner as it deems most useful to its work. 

Section 6. Members of the Trade shall be entitled to participate 
in and share the benefits of the activities of the Code Authority, to 
participate in the selection of the members thereof, and to use the 
N.R.A. Code Insignia, by assenting to and complying with the re- 
quirements 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 b}^ the Code Author- 
ity, subject to approval 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. 

Section 7. 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 Adjninistrator may require 
that such action be suspended to afford an opportunity for investi- 
gation of the merits of such action and further consideration by 
such code authority or agency pending final action Vv^hich shall not 
be effective unless the Administi-ator approves or unless he shall fail 
to disapprove after thirty days' notice to him of intention to pro- 
ceed with such action in the original or modified form. 

Section 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 bo liable in any manner to any- 
one for any act of any otlier member, officer, agent or employee of 
the Code Authority. Nor shall any member of the Code Authority 
be liable to anyone fcjr any action or omission to act under tlie Code, 
except for his own willful misfeasance or non-feasance. 



197 

Article V — Trade Practices 

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

(1) Selling or ofFering- for sale, distribution service for less than 
the cost of rendering such distribution service as determined by such 
uniform cost accounting system as may be approved by the 
Administrator. 

(2) Contracting or undertalring to distribute a certain number or 
quantity of material in certain given localities and actually distrib- 
uting a lesser number or quantity without advising the purchaser of 
the distribution service of such fact. 

(3) Knowingly causing or permitting, without the consent of the 
purchaser of the distribution service, the destruction, waste, or con- 
cealment of any material which a member of the Trade has con- 
tracted or undertaken to distribute. 

(4) Issuing or permitting to be issued false or misleading infor- 
mation whether at the request of a purchaser or distribution service, 
or otherwise, as to the number or quantity of material distributed 
or to be distributed. 

(5) Making or promising, either directly or indirectly, to any 
purchaser or prospective purchaser or to any agent or cmploj'ee of a 
purchaser or prospective purchaser of distribution service, any bribe 
or secret rebate. 

(G) Inducing or attempting to induce the breach of an existing 
oral or written contract between a competitor and his customer or 
interfering with or obstructing the performance of any such con- 
tractual duties or services. 

(7) The defamation of competitors by falsely imputing to them 
dishonorable conduct, inability to perform contracts, questionable 
credit standing, or by other false representations. 

(8) Securing confidential information concerning the business of 
a competitor by a false or misleading statement or representation, 
hj a false impersonation of one in authority, by briberj^ or by 
any other unfair method. 

(9) 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 an}' prac- 
tice or method is unfair, providing that such adjudication or hold- 
ing is not inconsistent with any provision of the Act or of this 
Code. 

Article VI — IModificatiok 

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



198 

Section 2. This Code, except as to provisions required by the 
Act, may be modified on the basis of experience or changes in cir- 
cumstances, 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 VII — Monopolies, Etc. 

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

Article VIII — Price Increases 

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

Article IX — Effectia'e Date 

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



Approved Code No. 297. 
Registry No. 1702-2-11. 



o 



Approved Code No. 298 
CODE OF FAIR COMPETITION 

FOR THE 

WIPING CLOTH INDUSTRY 
AS APPROVED ON FEBRUARY 17, 1934 



ORDER 



Approving Code of Fair Competition for The Wiping Cloth 

Industry 

An application having been duly made pursuant to and in full 
compliance vnih 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 Wiping 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 

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 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 
Code Authority shall appoint a Committee, wliich 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, 
Administrator for Industrial Recovery. 
Approval recommended: 
A. D. Whiteside, 

Division Administrator. 

Washington, D.C, 

February 17, 1934. 

41087" 376-109 84 (I99) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Hearing on the Code of Fair Competition for the Wiping 
Cloth Industry was held at the Mayflower Hotel, Washington, D. C, 
on December 11, 1933. The Code, which is attached, was presented 
by duly qualified and authorized representatives of the industry, 
complying with statutory requirements, said to represent 70% in 
number and 80% in volume of the industry. 

In accordance with the customary procedure, everyone present who 
had filed a request for an appearance was freely heard in public and 
all statutory and regulatory requirements were complied with. 

The provisions of this Code have been approved by the Labor Ad- 
visory Board, the Industrial Advisory Board, the Research and Plan- 
ning Division, and the Legal Division. The Consumers Advisory 
Board approved aU provisions of the Code except the one requiring 
the use of a standard form of contract by all members of the industry. 

THE INDUSTRY 

In 1929 the industry did a twelve (12) million dollars volume of 
business; in 1933 this volume had declined about 40% to around seven 

(7) million dollars. The industry employed four thousand (4000) full- 
time workers in 1929 and in 1933 the number had declined to about 
twenty-five hundred (2500). The employment is divided about 
equally between men and women. The operations performed by 
men are distinctly different in nature and degree of sldll from those 
performed by women. In 1929 the average minimum wage for men 
was thirty-five cents (35^) per hour and for women twenty cents {2Qf) 
per hour; on July 1, 1933, this had decreased to twenty-five cents 
(25^-) for men and fifteen cents (15f!) for women, and in some localities 
to as low as nine cents (9?f) per hour for women. In 1929 the average 
number of hours worked per week was sixty (60), and on July 1, 1933, 
it was fifty-five (55). The hours provided in this Code show a 27% 
reduction from those in eflfect on July 1, 1933, and should increase 
employment accordingly. The Code provisions on wages will result 
in a substantial increase in pay over the wages in effect on July 1, 1933. 

PROVISIONS OF THE CODE 

The Code provides minimum wage rates of thirty-two and one-half 
cents (32)^^) per hour for men and twenty -seven and one-half cents 
(27)2^) for women in the North, twenty-seven and one-half cents 
(27/2^) per liour for men and twenty-two and one-half cents (22)^j!5) per 
hour for women in the South. No office or clerical employee shall 
be paid at a rate of less than fourteen dollars ($14) per week in the 
North or thirteen dollars ($13) ])er week in the South. Provision 
is made for maintenance of dilferentials in wages above the mininujm. 

Hours of work are limited to forty (40) hours per week and eight 

(8) per day with the following exceptions: truck drivers and their 
helpers may work forty-eight (48) hours i)er week; electricians, fire- 
men and lactor^i machinery rej)airm(Hi may work forty-four (44) 

(200) 



201 

hours per week; watchmen may work fifty-two (52) and fifty-sLx (56) 
hours per week on alternate weeks or an average of fifty-four (54) 
hours per week. Executives receiving thirty-five dollars ($35) or 
more per week, outside salesmen and outside buyers are not limited in 
hours. Employees engaged in emergency maintenance or emergency 
repair work are not limited in hours but must be paid time and one- 
third for hours worked in excess of their normal maximum. No 
employee is permitted to work more than six (6) days in any seven-day 
period. 

Representation on the Code Authorit}'^ is provided for all members 
of the trade. 

Trade practice provisions have been incorporated to eliminate 
unfair practices which have sprung up 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 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 
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 practice, by promoting the fullest possible utilization of 
the present production capacity of industries, by avoiding undue 
restriction of production (except as may be temporarily required), 
by increasing trie consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) Said trade 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 limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant association 
is an industrial association truly representative of the aforesaid In- 
dustry; and that said association imposes no inequitable restrictions 
on admission to membership therein. 

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

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

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

For these reasons, this Code has been approved. 
Respectfull}'", 

Hugh S. Johnson, 

Administrator. 
February 17, 1934. 



CODE OF FAIR COMPETITION FOR THE WIPING CLOTH 

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 Wiping Cloth 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 "Wiping Cloth Industry", as used herein, means and 
includes the laundering and/or sterilizing of textile fabrics for con- 
version into wiping cloths (and the processing incidental thereto), 
and/or the sale of such wiping cloths. 

2. The term "employee" as used herein, means and includes any- 
one engaged in the Industry in any capacity receiving compensation 
for his services, irrespective of the nature or method of payment of 
such compensation, except a member of the Industry. 

(a) The terms "outside salesman" and "outside buyer", as used 
herein, mean and include any employee who is engaged exclusively 
in selling and/or buying respectively outside the establishment of his 
employer. 

(b) The term "watchmen", as used herein, means and includes 
those employees who are exclusively engaged in watching plants, 
property, and/or plant equipment. 

(c) The phrase "employees in a managerial capacity", as used 
herein, means and includes foremen and office managers. 

(d) The term "clerical and office employees", as used herein, 
means and includes any employee who is engaged in work of a 
clerical, accounting, sales, or service character, in the office of a 
member of the Industry. 

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

4. The term "member of the industiy", as used herein, means and 
includes, but without limitation, any individual, partnership, associa- 
tion, corpoi-ation or other form of enterprise, engaged in the industry, 
either as an employer, or on his or its own behalf. 

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

6. The term "South", as used herein, means and includes the 
States of Maryland, Virginia, North C^arolina, South ('arolina, 
Florida, (ieorgia, Alabama, Tennessee, Kentucky, Mississippi, Loui- 
siana, Arkansas, Missouri, Oklalioma, Texas. 

(202) 



203 

7. The terra "Nortli", as used herein-, means and includes all of 
the territory of the continental United States except that portion 
included under the term "South". 

Article III — Hours 

1. No employee, except as herein otherwise provided, shall be 
permitted to work in excess of 40 hours in any one week or more than 
8 hours in any 24-hour period; provided, how^ever, that office and cler- 
ical employees shall be permitted to work not to exceed 80 hours per 
year in addition to the maximum herein above established; and 
provided further, that such additional hours shall be compensated 
for at the rate of time and one-third. 

2. The maximam hours fixed in the foregoing section shall not 
apply to: 

(a) Truck drivers and their helpers, who shall be permitted to work 
not in excess of 48 hours in any one week. 

(b) Employees engaged exclusively as electricians, firemen, or 
factory machinery repairmen, who shall be permitted to work not in 
excess of 44 hours in any one week. 

(c) Engineers, who shall be permitted to work not in excess of 48 
hours in any one week. 

(d) Employees in an executive or managerial capacity receiving 
$35 or more per week. 

(e) Outside salesmen and outside buyers. 

(f) Watchmen, who shall be employed in pairs and shall not be 
permitted to work more than 52 hours and 56 hours on alternate weeks, 
or an average of 54 hours per week. 

(g) Employees on emergency maintenance or emergency repair 
work involving breakdowns or protection of life or property, but in 
any such special case at least time and one-third shall be paid for 
hours worked in excess of the maximum hours herein provided. 

3. No employee shall be permitted to work more than six days in 
any seven-day period. 

4. 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 

1. No employee, except as herein otherwise pro\dded, shall be 
paid at less than the following wage rates per hour; 

In the North: Male, $.32}^; Female, $.27 K- 
In the South: Male, $.27 K; Female, $.22 }i 

2. No office or clerical employee shall be paid at less than the 
following weekly rates: In the North, $14.00; In the South, $13.00. 

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

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

5. No member of the industry, by reason of the adoption of this 
Code, shall reduce an employee's total weekly compensation (based on 
the four week period prior to July 15, 1933) in excess of the minimums 



204 

herein provided, whetlier based on an hourly, weekly or other rate, 
notwithstanding the fact that the hours of work of such employee may 
be reduced hereunder. 

There shall be an equitable adjustment of all wages above minimum, 
and to that end, within thirty days from the effective date of this 
Code, the Code Authority shall submit for the approval of the Admin- 
istrator a proposal for adjustment in wages above the minimum. 
Upon approval by the Administrator, after such hearing as he may 
prescribe, such jDroposal shall become binding as a part of this Code.^ 

Aeticle V — General Labor Provisions 

1. No person under 18 years of age shall be employed in this 
Industry. In any State an employer shall be deemed to have com- 
plied with this provision as to age if he shall have on file a certificate 
or permit duly issued by the Authority in such State empowered to 
issue employment or age certificates or permits showing that the 
employee is of the required age. 

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

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

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

5. Every employer shall provide for the safety and health of his 
employees at the place and during the hours of their employment. 
Standards for safety and health shall be submitted by the Code 
Authority to the Administrator within six months after the effective 
date of this Code. 

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

7. p]mploycrs shall not reclassify employees or duties of occupations 
performed by employees, or engage in any other subterfuge, for the 
purpose of defeating the provisions of the Act or of the Code. 

8. Posting: 

(a) P^ach employer shall post in a conspicuous place of easy and 
continuous access to employees, the articles dealing with hours, wages 
and general labor provisions of tliis Code. 

(b) The notice shall be printed in English in type of at least 10 
point, and at least three notices shall be posted in any shops employing 
more than 10 employees, and one in any smaller shop. 

(c) All changes in the provisions of these aforesaid articles shall bo 
posted within one week after such changes have been incorporated in 
the Code. 

1 See paragraph 2 of order approving this Code. 



205 

Article "VT — 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 from eleven (11) to 
thirteen (13) representatives of the industry, or such other number 
as may be approved from time to time by the Administrator, to 
be selected as hereinafter provided; and the Administrator, in his 
discretion, may appoint not more than three (3) additional mem- 
bers who shall be known as "administration members of the Wiping 
Cloth Industry Code Authority", without vote, to represent such 
groups or governmental agencies as he may designate. 

(b) Eleven (11) representatives of the Industry shall be selected 
by the Board of Directors of the Sanitary Institute of America. 

(c) Two additional representatives of the industry may be ap- 
pointed b}^ the Administrator or selected in a manner prescribed by 
nim. 

2. Duties and powers of Code Authority. 

The Code Authority shall have the following powers, to the extent 
permitted by the Act. 

(a) To adopt by-laws and rules and regulations for its procedure and 
for the administration and enforcement of this Code. 

(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 member of 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 
shall have the same force and effect as the other provisions of this 
Code. 

(e) Within ninety (90) days of the effective date of this Code the 
Code Authority shall submit recommendations prescribing standards 
of laundering and steriUzing of wiping cloths, which, upon approval 
of the Administrator, shall have the same lorce and effect as the 
other provisions of this Code. 

(f) Within ninety (90) days of the effective date of this Code the 
Code Authority shall submit recommendations for a standard form 
of contract for the industry which, upon approval of the Administrator, 
shall have the same force and effect as the other provisions of this 
Code. 

(g) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for herein 
and to pay such trade associations and agencies the cost thereof, 
provided that nothing herein shall relieve the Code Authority of its 
duties or responsibilities under this Code, and that such trade asso- 



206 

ciations and agencies shall at all times be subject to and comply with 
the provisions hereof. 

(li) To make recommendations to the Administrator for the coordi- 
nation of the administration of this Code with such other codes, if 
any, as may be related to the Industry. 

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 asso- 
ciation, bylaws, regulations, and any amendments when made thereto, 
together with such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

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

5. Members of the Industry shaJl 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 ascenting to and 
complying with the requirements of this Code and sustaining their 
reasonable share of the expenses of its administration. The reason- 
able share of the expenses of administration shall be determined by 
the Code Authority, subject to review by the Administrater, on the 
basis of volume 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 necessary for 
the purpose recited in Section 3 (a) of the Act. 

7. 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 effected unless the 
Administrator iipprovcs or unless he shall fail to disapprove after 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 the members of the industry and ai'C prohibited: 

1. The allowance of a cash discount in excess of 2%, by reason of 
payment on or before the 10th of the month following date of invoice. 

2. No mciriber of the industry shall use advertising (whether 
printed, radio, disi)lHy, or of any other nature) or other representation 
which is inaccurate in any material particular or in any way mis- 
represent any commodity (including its use, trade-mark, grade, qual- 

» See paragraph 2 of order approving this Code. 



207 

ity, quantity, origin, size, material content, or preparation) or credit 
terms, values, policies, services, or the nature or form of the business 
conducted. 

3. The sale, or offer for sale, of laundered and/or sterilized wipers 
imported from a foreign country, unless all packages of such \\4pers 
are legibly marked and invoices covering the same contain a notice 
stating the country of their origin, that the wipers are of imported 
material, and that they have been laundered and/or steriHzed in a 
foreign country. The imported wiper shall not be accompanied by 
the affidavit of guaranty of the Sanitary Institute of America, unless 
it is actually laundered and/or sterilized within the continental limits 
of the United States to conform to the standards of the Sanitary 
Institute of America. 

4. The sale, or offer for sale, of wipers as sterilized or laundered, 
unless they are actually processed to conform with the standards pre- 
scribed by the Code Authority and approved by the Administrator. 

5. The defamation of competitors by falsely imputing to them dis- 
honorable conduct, inability to perform contracts, questionable credit 
standing, or by other false representations or by the false disparage- 
ment of the grade or quality of their goods. 

6. No member of the industry shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influenc- 
ing or rewarding the action of any employee, agent or representative 
of another in relation to the business of the employer of such em- 
ploj^ee, the principal of such agent or the represented party, without 
the knowledge of such employer, principal or party. Commercial 
bribery provisions shall not be construed to prohibit free and general 
distribution of articles commonly used for advertising except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

7. Withholding from, or inserting in, the invoice statements which 
make the invoice a false record wholly oi in part. Postdating and/or 
predating of invoices shall be considered falsification of record. 

8. The false marking or branding of any product of the industry 
which has the tendency to mislead or deceive customers or prospec- 
tive customers, whether as to the grade, quality, quantity, substance, 
character, nature, origin, size, finish, or preparation of any product 
of the industry, or otherwise. 

9. 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 aU purchasers on like terms 
and conditions. 

10. Inducing the breach of an existing contract between a competi- 
tor and his customer or source of supply, or interfering with or ob- 
structing the performance of such contractual duties or services. 

11. Aiding or abetting any person, firm, partnership, or corpora- 
tion in any unfair practices in the Wiping Cloth Industry, directly 
or by using any subterfuge or evasion. The principal or principals 
of any member of the Industry shall be responsible for any violation 
by an agent acting within the scope of his authority. 

12. The shipment of goods on consignment, except that shipments 
on consignment may be made solely to jobbers, in which case the 
consignment period shall not exceed a period of four months, after 
which period interest shall be charged at the rate of 6% per annum. 



208 

Article VIII — Modification 

1 . This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of subsection (b) of Section 10 of the 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 spe- 
cifically, but without limitation, to the right of the President to can- 
cel or modify his approval of this Code or any conditions imposed by 
him upon his approval thereof. 

2. This Code, except as to provisions requii-ed 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, Etc. 

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

Article X — Effective Date 

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

Approved Code No. 298. 
Registry No. 299-1-21. 

o 



Approved Code No. 299 
CODE OF FAIR COMPETITION 

FOR THE 

ACADEMIC COSTUME INDUSTRY 

As Approved on February 19, 1934 



ORDER 



Approving Code of Fair Competition for the Academic Costume 

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 Academic Costume Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings Avith respect thereto, having been made and 
directed to the President : 

NOW, THEREFORE, on l)ehalf 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. C543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed rejoort and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act ; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 
Approval recommended : 
A. D. Whiteside, 

Division A dministrafor. 
Washington, D.C, 

Fehruarij 19, 1934. 

41085° 37&-110 34 (209) 



REPORT TO THE PRESIDENT 

The Presidekt, 

The ^yhite House. 

Sir: Public hearing on the Code of Fair Competition for the 
Academic Costume Industry as proposed by the National Guild of 
Academic Costumers was conducted in Washington on October 18, 
i933. Every person who requested an appearance was fairly heard 
in accordance with statutory and regulatory requirements. The 
Code has the approval of the Labor, Industrial and Consumers' 
Advisory Boards of the National Recovery Administration and of 
the Legal Division. The Chairman of the Code Committee of the 
submitting association, upon authorization of the Committee, has 
also indicated his approval of the final draft of the Code on behalf 
of the industry. 

DErCRTFTION OF THE INDUSTRY 

The iuelustry, as defined in the Code, includes the manufacture, 
sale and rental of caps, gowns and hoods for use in schools and col- 
leges, and the manufacture, sale and rental of clerical, choir and 
judicial robes. 

The manufacture and rental of academic costumes comprise about 
90% of the total industry and of this business fully 80% entails only 
the rental of caps, gowns and hoods. The manufacturing phase of 
the industry is therefore of minor importance and it may be construed 
almost entirely as a service operation. 

RESUJIE OF THE CODE 

Article I sets forth certain definitions. 

Article II stipulates a maximum forty hour week for employees 
engaged in the mechanical processes of manufacture, forty-eight 
hours a week for janitors and watchmen, and a forty-four hour week 
for all other employees except that overtime is permitted as neces- 
sitated by the i^eculiar condition of the industry which is concentrated 
in about a ten week period from the middle of April to the end of 
June. 

Article III sets minimum ^vages of $14 per week for numuf acturing 
employees and for all other employees in cities of 250,000 po])ulation 
and over and $12 per week in cities or places of less than that 
po])ulation. 

Article IV jjrohibits child laboi- and contains the laboi- provisions 
mandatory under the Act. 

Article V ])rovides foi- the establisiuuent of a Code Authority by 
the National Guild oi Academic Costumers and the Administrator. 
It em])owers^he Code Authority to collect statistics of the industry, 
to provide for fair ti'ade j^ractices, to enforce the provisions of the 
Code, (o cooiH'rate with the Administi'ator in regulating (he use of 

(210) 



211 

an N.R.A. insignia or label and to make recommendations for 
representative costs below which products of the industry shall not 
be rented or sold. 

Article VI provides for the use of an N.R.A. label on garments 
or containers for the j^urpose of informing customers of conditions 
under which products of the industry are manufactured or dis- 
tributed. 

Article VII i^rohibits trade practices which in the past have 
greatly injured the industry. 

Article VIII states the method of modifying or amending the 
Code. 

Article IX j)rohibits monopolies or discrimination against small 
enterprises. 

Article X recognizes the purpose of the National Recovery Act 
to increase real purchasing power and provides that price increase 
shall be limited to actual additional increases in costs. 

Article XI provides for the application of the Code to persons 
employed on the products of the industry although employed by firms 
engaged in other lines of business. 

Article XII states the effective date of the Code. 

POSSIBLE REEMPLOYMENT 

The Academic Costume Industry employed more people during 
1933 than during 1928. The reduction of hours provided for in the 
Code will probably increase employment about 20% and the in- 
creasing trend toward the use of caps and gowns in secondary schools 
will probably provide a still greater increase in employment. 

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 
conunerce 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 elimin- 
ating 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 tempor- 
arily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by reduc- 
ing 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 industiy. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 



212 

Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant group is 
an industrial group truly representative of the aforesaid industry; 
and that said group imposes no inequitable restrictions on admis- 
sion to membership therein. 

(d) The Code is not designed to and will not permit monopolie.'S 
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 19, 1934. 



CODE OF FAIR COMPETITION FOR THE ACADEMIC 
COSTUME INDUSTRY 

Purposes 

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

Article I — Definitions 

1. The term " Industry " as used herein includes the manufacture, 
sale, or rental of caps, gowns and hoods for use in schools and 
colleges, and the manuiacture, sale, or rental of clerical, choir, and 
judicial robes. 

2. The term " Member of the Industry " as used herein includes, 
but without limitation, any individual, partnership, association, cor- 
poration, or other form of enterprise engaged in the Industry, either 
as an employer or on his own behalf. 

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

4. The term " employer " as used herein includes any one for 
whose benefit, or on whose business such employee is engaged in said 
Industry on his own behalf. 

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

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

Article II — Hours of Labor 

1. No employee engaged in the mechanical processes of manufac- 
ture shall be permitted to work more than forty (40) hours in any 
one week. 

2. No clerical, office, store, or Avarehouse employees nor other 
employees not included within the provisions of Sections 1, 3, 4 
and 5 hereof, shall be permitted to work in excess of forty-four (44) 
hours in any one week, except that in emergency and other peak 
periods, not to exceed ten (10) weeks in any calendar year such 
employees may be permitted to work a maximum of forty-eight (48) 
hours in any one week, provided, how^ever, that such employees 
shall be paid not less than time and one-third the normal rate per 
hour for all hours worked in excess of forty-four (44) hours in 
any one week. 

(213) 



214 

3. No shipping clerk, stock clerk, driver or porter shall be per- 
mitted to work in excess of fortj^-four (44) hours in any one week, 
except that this provision shall not apply to such employees during 
a period not to exceed ten (10) weeks in any calendar ,year; pro- 
vided, however, that such employees be paid not less than time and 
one-third the normal rate per hour for all hours worked in excess of 
forty-four (44) hours in any one week. 

4. No janitor nor watchman shall be permitted to worlc in excess 
of forty-eight (48) hours in any one week. 

5. The provisions of this Article shall not apply to employees en- 
gaged in executive, managerial, or supervisorj'^ capacity and receiv- 
ing thirty-five dollars ($35.00) per week or more, or to outside 
salesmen. 

6. No overtime beyond that therein provided for shall be per- 
mitted, except upon the authorization of the Code Authority, under 
such conditions and upon such terms as the Administrator may 
prescribe. 

7. No employee shall be permitted to work for a total number of 
hours in excess of the number of hours prescribed for such week and 
day, whether employed by one or more employers. 

8. No work shall be carried on in homes or tenement houses, or in 
unsanitary buildings, or in buildings unsafe on account of fire or 
dangerous to health. 

Article III— W.ices 

1. No emploj^ee engaged in mechanical processes of manufacturing- 
shall be paid at less than the rate of $14.00 per week of forty (40) 
hours. 

2. No clerical, office, store, warehouse or other employee, not in- 
cluded within the term of the foregoing Section, shall be paid at 
less than the rate of $14.00 per week wdien employed in cities of 
250,000 population or over, nor less than at the rate of $12.00 per 
week when employed in cities or places of 250,000 or less, 

3. No employee whose normal full time weekly hours for the four 
weeks ending on the effective date of this Code are reduced by less 
than 20% shall have his full time weekly earnings reduced. Em- 
ployees whose full time weekly hours are reduced by more than said 
20% shall have the said earnings equitably adjusted. 

All adjustments of Avage rates made in accordance Avith this pro- 
vision shall be reported to the Code Authority Avithin thirty (30) 
days of the effective date of this Code. The Code Authority shall 
have the power to investigate and adjust complaints arising under 
this provision. Adjustments by the Code Authority modifying pre- 
vious adjustments sliall be subject to review by the Administrator. 

4. This Article establishes minimum rates of pay which shall 
apply irrosjjective of wliether an employee is actually compensated 
on a time rate, piece work or other ))asis. This Article aiul Section 
shall not apply to outside salesmen. 

5. Clean, sanitar^y, light, healthful and safe working conditions 
shall be provided for all employees. 



215 

Article IV^ — General Labor PRO\^SIONs 

1. Xo person under sixteen (16) years of age shall be employed 
in the Industry. No person under eighteen (18) years of age shall be 
employed in operations or occupations which are hazardous in na- 
ture or dangerous to health. The Code Authority shall submit to 
the Administrator not later than fifteen (15) days after the effective 
date a list of such operations or occupations. In any state an em- 
ployer shall be deemed to have complied with the provisions as to 
age if he shall have on file a certificate or permit duly issued by the 
Authority in such state empowered to issue employment or age 
certificates or permit showing that the employee is of the required age. 

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

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

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

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

4. No provisions in this Code shall supersede any law within any 
State which imposes more stringent requirements on employers as 
to age of employees, wages, hours of work, or as to safety, health, or 
sanitary conditions, or insurance, or fire protection, or general work- 
ing conditions, than are imposed by this Code. 

5. All employers shall post complete copies of Articles I, II, III, 
lY. and V of this Code in ponspicuous places accessible to employees. 

Article Y — Adjiixistration 

1. (a) There shall forthwith be constituted a Code Authority con- 
sisting of seven (7) or more members, to be selected in the following 
manner : 

Seven (7) members shall be selected by the National Guild of 
Academic Costumers. In addition thereto the Administrator may 
appoint not more than three (3) additional members without vote 
and without expense to the Industry, to represent such groups or 
interests or such governmental agencies as he may designate. Such 
members shall receive notice of and may sit at all meetings of the 
Code Authority'. 

(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 association, 
bj'-laws, regulations and any amendments when made thereto, to- 



21G 

gether with such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the purposes of tliis Act. 

(c) In order that the Code Authority shall at all times be truly 
rei^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 re- 
spects comply with the provisions of the Act, may require an ap- 
propriate modification in the method of selection of the Code 
Authority. 

(d) An appeal from any action of the Code Authority affecting 
the rights of any person subject to this Code may be taken to the 
Administrator. 

(e) Members of the Industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authority and 
to participate in the selection of the members thereof by assenting to 
and complying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. Such 
reasonable share of the expenses of administration shall be deter- 
mined by the Code Authority, on the basis of volume of business 
and/or such other factors 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 be 
liable to anyone for any action or omission to act under the Code, 
except for his own Avilful misfeasance or non-feasance. 

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

(a) To adopt by-laws and furnish to the Administrator true and 
correct copies of the by-laws and all amendments thereto imme- 
diately upon their adoption, together with true and correct copies 
of all rules and regulations which may be adopted by the Code 
Authority and true and correct minutes of all of its meetings, all 
certified to by the Secretary of the Code Authority. 

(b) To elect officers and to assign to them such duties as it may 
consider advisable, to provide rules for its procedure, and generally 
to act as the administrative agency of this Code, in accordance with 
the terms of the Act and the principles herein set forth. 

(c) To receive, investigate and adjust complaints of violations of 
this Code subject to such rules and regulations as may be from time 
to time pi'omulgated by the Administrator and to make recommenda- 
tions l)ased upon such investigations to (he proper authorities for 
the prosecution of such violations. 

(d) I'o obtain fiom niembei's of the Industry periodical reports in 
such form and at such times with respect to wages, hours of labor, 
conditions of employment, number of employees, and such other mat- 
ters pertinent to the pur])oses of this Code as the Code Authority 
may require for the administration and enforcement of this Code, 
and to submit reports to the A(hninistrator in such form and at such 



217 

times as he may require in order that the President may be informed 
as to the observance or nonobservance of this Code and to further 
effectuate the policies of the Act. 

(e) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein, and to pa}- such agencies the cost thereof; provided, that 
such agencies shall at all times be subject to and comply with the 
provisions of this Code; and provided further that nothing herein 
shall relieve the Code Authority of any of its duties and responsi- 
bilities thereunder. 

(f ) To coordinate the administration of this Code with such other 
codes, if any, as may be related to the Academic Costume Industry, 
or any subdivision thereof, with a view to promoting joint and 
harmonious action upon matters of common interest. 

(g) To provide ways and means for financing the operation of 
said Code Authorit}' and to determine an equitable method of appor- 
tioning in the Industry the cost of administering this Code. Money 
raised in any manner i-hall not h? used except for the administering 
of this Code. 

(h) To cooperate with the Administrator in regulating the use 
of an N.R.A. insignia and an N.R.A. label as hereinafter provided 
for. 

(i) To make recommendations for fair trade practices including 
provisions against selling below cost and otherwise to assist the 
Administrator in effecting the purpose of this Code and the Act. 
Any such reconnnendations upon the approval of the Administrator, 
after such hearing and notice as he shall prescribe, shall become a 
part of this Code. 

(j) To investigate and adopt a uniform system of cost account- 
ing for products manufactured by the Industry which, when so 
adopted, shall become a standard for the Industry ; except that cost 
accounting systems now in use by members of the Industry, which 
are substantially the same as the system recommended or which re- 
flect the same basis of establishing costs, may be retained. 

(k) To study known costs involved in the renting of products 
of the Industry insofar as they are common to all firms engaged in 
such rental business and, after such study to recommend to the 
Administrator the lowest representative cost of such rental service 
and after his approval no member of the Industry shall rent below 
such representative cost. Such representative cost as above defined 
shall, however, be reconsidered and if found advisable, revised from 
time to time at reasonable intervals. 

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 daj's 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. 

4. In addition to the information required to be submitted to the 
Code Authority, ail members of the Industry shall furnish such ade- 



218 

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 any one of any existing obligation to furnish reports 
to government agencies. 

Article VI — Labels 

All garments manufactured and/or containers for such garments 
distributed subject to the provisions of this Code may bear an 
N. K, A. label to symbolize to purchasers, or persons renting said 
garments, the conditions under which they are manufactured or dis- 
tributed. Under the powers vested in him by the executive order of 
October 14, 1933, and under grant of necessary authority by the 
Administrator, the Code Authority shall have the exclusive right 
in this Industry to issue and furnish said labels to the members 
thereof. Each label shall bear a registration number especially as- 
signed to each employer by the Code Authority, and remain attached 
to such garment and/or container. Any and all employers may 
apply to the Code Authority for a permit to use such N. K. 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. The Code Authority, 
subject to the approval by the Administrator, shall establish rules 
and regulations and appropriate machinery for the issuance of la- 
bels and inspection and supervision of the practices of employers 
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; 
of insuring to each individual employer that the symbolism of said 
label will be maintained by virtue of compliance with the practices 
herein contained by all other employers. 

Article VII — Trade Practices 

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

1. The false mai'king or branding of any product of the Industry 
which has the tendency to mislead or deceive customers or ]:)rospec- 
tive customers, whether as to the grade, quality, quantity, substance, 
character, nature, origin, size, finish, or preparation of any i^roduct 
of the Industry, or otherwise. 

2. The making or causing or knowingly permitting to be made 
or published any false, materially inaccurate, or deceptive statement 
by way of advertisement or otherwise, Avhether concei-ning the grade, 
quality, quantity, substance, character, nature, origin, size, finish, or 
preparation of any ])roduct 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 prosj)ective customers. 

3. Directly or indirectly to give or |)eriuit to be given or to offer 
to give to any school or college or to students, faculty members, or 
officials thereof, free gowns, caps, charity, or other gifts whether in 
the form of money or otherwise or the placing of advertisements in 
fcchool or college publications or the ahowance of special prices or 



219 

discounts on other merchandise sold or rented by a member of the 
industry or his sales representative. 

4. 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 or obstructing the 
performance of any such contractual duties or services. 

5. The payment or allowance of secret rebates, refunds, commis- 
sions, credits, or unearned discounts, whether in the form of money 
or otherwise. Nothing in this paragraph shall apply to bona fide 
commissions allowed to a sales representative in a school or college 
where the account has been handled by a local representative of a 
member of the industry prior to August 16, 1933, even though such 
representative may be a faculty member, or official of the school or 
college. These provisions shall not be construed to prohibit a 
general distribution of articles commonly used as advertising, except 
so far as such articles are actually for commercial bribery as 
hereinabove defined. 

6. The defamation of competitors by falsely imputing to them 
dishonorable conduct, inability to perform contracts, questionable 
credit standing, or by other false representations or by false dispar- 
agement of the grade or c|uality of their goods. 

7. The publishing or circularizing of threats or suits for infringe- 
ment of patents or trade marks or of any other legal proceedings 
not in good faith, with the tendency or effect of harassing competi- 
tors or intimidating their customers. 

8. Securing confidential information concerning the business of 
a competitor by a false or misleading statement or representation, 
by a false impersonation of one in authority, by bribery, or by any 
other unfair method. 

9. Withholding from or inserting in any invoice or statement 
figures which make the invoice or statement a false record wholly 
or in part of the actual transaction, 

10. Any sale on the installment plan, which gives the purchaser 
the privilege of return with cancellation of part of the purchase 
price, shall be deemed a rental and shall be subject to the provisions 
of this Code. 

Article VIII — Modifications 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of subsection (b) of Section 10 of the Act, from time to time 
to cancel and modify any order, approval, license, rule, or regulation 
issued under said Act. 

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

Article IX — Moxopolies 

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



220 

Article X — PrIce Increases 

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

Article XI — General 

Any emj^loyer, who at any time, shall manufacture, sell or rent 
any article or articles subject to the provisions of this Code, shall be 
bound by all provisions of this Code as to all emploj^ees engaged in 
whole or in part in such manufacture, sale or rental. In case any 
employee shall be engaged partly in such manufacture, sale or rental 
and partly in the manufacture, sale or rental of goods of another 
character, covered by another approved Code, this Code shall apply 
only to such portions of such employee's time as is applied to the 
manufacture, sale or rental of articles subject to this Code. 

Article XII — ErFECTi\^ Date 

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

Approved Code No. 299. 
Registry No. 1716-01. 

O 



Approved Code No. 300 
CODE OF FAIR COMPETITION 

FOR THE 

LYE INDUSTRY 

As Approved on February 19, 1934 



ORDER 



Approving Code of Fair Compe'iition for the Lye 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 L,ye 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 

JPrBSlQGIlt) * 

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, Section 1, insofar as they prescribe a 
waiting period between the filing with the Code Authority and the 
effective date of revised price lists or revised terms and conditions 
of sale be and they are hereby stayed pending my further order 
either within a period of 60 days from the effective date of this 
Code or after the completion of a study of open price associations 
now being conducted by the National Recovery Administration. 

Hugh S. Johnson, 
Admiinistrator for Industrial Recovery. 

Approval recommended : 
A. D. Whiteside, 

Division Administrator. 

Washington, D.C, 

Fehruary 19, 1931).. 

41485° 376-112 34 (221) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the Code of Fair Competition for the Lye 
Industry as re\4sed after public hearings conducted in Washington 
on December 7, 1933. 

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, includ- 
ing removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanctions and supervision, 
by eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultuial products through increasing purchasing power, by 
reducing and relieving unemplojnnent, 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 (.'ode 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 restrictions 
on admission to membership therein, 

(d) 'J'he Code is not designed to and Mill not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 
KUjall 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 })een approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
February 19, 1934. 

(22'J) 



CODE OF FAIR COMPETITION FOR THE LYE 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 
Lye Industry, and its provisions shall be the standards of fair com- 
petition for such industry and shall be binding upon every member 
thereof. 

Article II — Definitions 

Section 1. Lye Industry. — The term " lye industry " as used herein 
includes the manufacturing, packing, and/or canning of lye for sale 
in packages which may be used for household purposes, and/or the 
primary distribution thereof, and the manufacturing of cans, pack- 
ages and/or shipping cases to be used for lye when produced by a 
manufacturer, packer or canner of lye for his own use. 

Sec. 2. Pr'nnary Dlstrihution. — The term " primary distribution " 
as used herein means the distribution direct to the trade buyer or to 
the ultimate consumer buyer by a manufacturer, packer, canner, or 
his agent, when in fact this function in whole or in part, including, 
but without limitation, the determination of marketing or selling 
policy, has been delegated to said agent by said manufacturer, packer, 
or canner. 

Sec. 3. Lye. — The term " lye " as used herein means any product 
in a package for household use M-hich is labeled Lye, or sold with the 
intention or possibility of being so labeled by anyone. 

Sec. 4. Employee. — The term " employee " as used herein includes 
anyone engaged in the industry in any capacityj excepting brokers, 
receiving compensation for his services, irrespective of the nature or 
method of payment of such compensation. 

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

Sec. 6. Memher of the Industry. — The term " member of the indus- 
try " as used herein includes anyone engaged in the industry as above 
defined, either as an employer or on his* own behalf. 

Sec. 7. Trade Buyer. — The term " trade buyer " as used herein 
means any commercial buyer as distinguished from an ultimate con- 
sumer buyer. 

Sec. 8. Broker. — The term '' broker " as used herein means any 
sales representative who performs the services of negotiating the sale 
of lye for and on account of the seller as principal and whose 
compensation is a commission or brokerage paid by the seller. 

Sec. 9. Open Price. — The term '' open price '" as used herein 
includes a price list which is published for the equal information of 
all trade buyers alike located in the same competitive market, and 
which states all the seller's prevailing terms of sale. 

(223) 



224 

Sec. 10. Competitive MarJcet. — The term " competitive market " as 
used herein means a geographical area, the boundaries of which 
are fixed by any member of the industry for himself. 

Sec. 11. President^ Act, and AdmhiUtrator. — The terms " Pres- 
ident ", " 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 Indus- 
trial Recovery. 

Article III — Hours 

Sectiox 1. No accounting, clerical, office, store, shipping, or inside 
sales employees shall be permitted to work in excess of forty (40) 
hours per week averaged over a two (2) months' period; nor more 
than forty-eight (48) hours in any calendar week. 

Sec. 2. No employee on automotive, or horse-drawn passenger, 
express, delivery, or freight service shall be permitted to work in 
excess of forty-four (44) hours per week averaged over a two (2) 
months' period, or in excess of forty-eight (48) hours in any calendar 
week. 

Sec. 3. No engineer, fireman, water tender, oiler, or cleaner shall 
be permitted to work in excess of forty-eight (48) hours in any 
calendar week. 

Sec. 4. No watchman shall be permitted to work in excess of 
fifty-six (56) hours in any calendar week. 

Sec. 5. No other employee except as provided in Section 6 below, 
shall be permitted to work in excess of forty (40) hours per week 
averaged over a six ((6) months' penod nor more than forty-five 
(45) hours in any calendar week. 

Sec. 6. Technical or professoinal employees, such as chemists, 
lawyers, doctors, and nurses, engaged in their technical or profes- 
sional capacity, who receive thirtv-five dollars ($35.00) or more per 
week, and employees in a managerial, supervisory, or executive 
capacity who receive thirty-five dollars ($35.00) or more per week, 
employees on emergency maintenance or repair work involving 
breakdown and protection of life and pioperty, and outside salesmen, 
are excepted from the provisions of Section 5 above. 

Sec. 7. If any employee, except those referred to in Section 1. 
Section 2, Section 3, Section 4, and Section f), works in excess or 
eight (8) hours in any twenty-four (24) hour i)eriod or in excess of 
forty (40) hours in any calendar week, he shall be paid for such 
excess hours at not less than one and one third (11/3) times his 
regulai- hourly rate of ])ay. 

Sec. 8. No employee (except watchmen) shall be permitted to 
work more than six (G) days in any seven (7) day period. 

Sec. 9. If any employee works for more than one emi)loyer, no 
fiuch employer or em[)loyers shall knowingly permit such employee 
to work for a total number of hours which is m excess of the maxi- 
mum hours herein prescribed, and all employers in the industry 
shall exercise due diligence to carry out the purposes of this section. 

Sec. 10. No employer shall reclassify emj^loyees or duties of occu- 
pations j)erformed or engage in any other subterfuge for the purpose 
of defeating the purpose or provisions of the Act or of this Code. 



225 

Article IV — Wages 

Section 1. No emplo3^ee shall be paid at a rate of less than four- 
teen dollars ($14.00) per week or thirty-five cents (35^) an hour 
except as follows: Learners or apprentices not exceeding five (5) 
percent of the total number of employees in any establishment em- 
ploying more than forty (40) employees, during the first sixty (60) 
days of their employment, shall be paid not less than eighty (80) 
percent of the minimum rates above prescribed. Any establisliment 
employing les,s than forty (40) employees, may have not more than 
two (2) learners or apprentices receiving not less than eighty (80) 
percent of the minimum rates. 

Sec. 2. This article establishes a minimum rate of pay which 
shall apply irrespective of whether an employee is actually compen- 
sated on a time-rate, piecework, or other basis. 

Sec. 3. Based upon changes in minimum pay as stated in the fore- 
going Sections of this Article, each employer shall make fair and 
equitable readjustments of all pay schedules above the minimum 
and shall report such readjustments to the Code Authority on or 
before February 15, 1934. 

Sec. 4. There shall be no evasion of this Code by any member of 
the industry by reclassification of general types of occupations 
existing on June 15, 1933. 

Article V — General Labor PR0^^SI0NS 

Section 1. No person under sixteen (16) years of age shall be em- 
ployed in the industry, nor anyone under eighteen (18) years of 
age in the case of factory workers. In any state an employer shall 
be deemed to have complied with this provision, if he shall have on 
file a certificate duly issued by an authority empowered to issue 
employment certificates, showing that the emploj^ee is of the required 

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 emplo^'ee and no one seeking emiDloynient shall be re- 
quired as a condition of employment to join any company union or 
to refrain from joining, organizing, or assisting a labor organization 
of his own choosing. 

Sec. 4. Employer 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. 5. Within each state this code shall not supersede any laws 
of such state imposing more stringent requirements or employers 
regulating the age of employees, wages, hours of work, or health, 
fire, or general working conditions than under this code. 

Sec. 6. Each employer shall make reasonable provision for the 
safety and health of his employees at the place and during the hours 
of their employment, and shall list with the Code Authority all 
occupations of a dangerous nature. 



226 

Sec. 7. Each employer shall post in conspicuous places accessible 
to employees full copies of xlrticle III, IV, and V of tliis code. 

Article VI — Administration 

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

Section 1. The Code Authority for the Lye Industry shall consist 
of five (5) members elected by the industry in the following manner, 
and of such additional members without vote as the Administrator, 
in his discretion, may appoint to represent such groups or interests or 
such governmental agencies as he may designate. 

(a) Nominations and elections of the elective members of the Code 
Authority, shall take place under the auspices of the Secretary of the 
Lye Manufacturers' Association and shall be conducted in the follow- 
ing manner : 

Each member of the industry who assents to and complies with the 
requirements of this Code and sustains his reasonable share of the 
expenses of its administration shall be entitled to one (1) vote and 
shall be termed hereinafter as an elector. 

(1) Each elector may nominate a sufficient number of individuals 
to fill whatever vacancy or vacancies exist. 

Ten (10) days after the Secretary has notified electors that a 
vacancy exists and that nominations are in order, he shall tally all 
nominations received. Those individuals receiving the greatest num- 
ber of nominations shall be the noininees, and there shall be twice as 
many nominees as there are vacancies to be filled. 

(2) Within two (2) days after the tallying of nominations the Sec- 
retary shall mail ballots to each elector which ballot shall list the 
nominees nominated. Each elector may vote for a sufficient number 
of nominees on the ballot received to fill existing vacancies. 

Ten (10) days after mailing of ballots the Secretary shall tally all 
ballots received from electors. The nominee or nominees, respec- 
tively, receiving the highest number of votes shall be elected. 

Within two (2) days after the tallying of votes the Secretary shall 
mail written notification to all electors setting forth the result of the 
election. 

(3) The Secretary shall call for nominations within three (3) 
days after the approval of the Code. 

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

(a) 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 rei^orts 
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. 



227 

When required, reports containing such information shall be 
notarized, the Code Authority shall designate the agent or agents to 
whom reports shall be submitted. Such agent or agents shall not be 
a member or members of the industry. AVhen reports are of a con- 
fidential nature, they shall be kept confidential by the agent or agents 
designated and by any designated government agencies. The infor- 
mation so collected ii published shall be disseminated without indi- 
vidual identification and only in combination with other information 
of the same type. 

(b) 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 effected unless the 
Administrator approves or unless he shall fail to disapprove after 
30 days' notice to him of intention to proceed with such action in its 
original or modified form. 

(c^ Any 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 associ- 
ation, by-laws, regulations and any amendments when made thereto, 
together with such other information as to membership, organiza- 
tion, and activities as the Administrator may deem necessai-y to 
effectuate the purposes of the Act. 

(1) 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) Members of the industi-y shall be entitled to participate in 
and share the benefits of the activities of the Code Authority by 
assenting to and complying with the requirements of this code and 
sustaining their reasonable share of the expenses of its administra- 
tion. The reasonable share of the expenses of the administration 
shall be determined by the Code Authority, subject to review by the 
Administrator, on the basis of volume of business and/or such other 
factors as may be deemed equitable to be taken into consideration. 

Article VII — Trade Practices 

Section 1. Each member of the industry shall file with the Code 
Authority not later than the effective date of this Code, price lists for 
the specified competitive markets within which such price lists are 
effective. Thereafter a member of the industry shall file with the 
Code Authority any changes in such price lists, or in the competitive 
markets within which they are effective, which changes shall become 
effective ten (10) days after the date of their filing. The Code Au- 



228 

thority shall mail to eacli member of the industry a copy of all price 
lists and changes when they are filed.^ 

Sec. 2. A member of the industry shall be permitted to manufac- 
ture, pack or can lye in cans, labels and cases which he may have on 
hand, and which do not conform to the provisions of this Code, pro- 
vided the same were purchased not later than December 8, 1933, and 
provided further, that before doing so and not later than fifteen (15) 
days after the approval of this Code by the President the member 
of the industry shall make application for this privilege to the Code 
Authority, and furnish therewith a statement duly sworn and nota- 
rized with reference to the quantities of such cans, cases or labels on 
hand and the purchase date thereof. A member of the industry who 
files such an application shall be required to report to the Code Au- 
thority when all such supplies mentioned in the application have been 
used, or upon demand by the Code Authority any time prior thereto 
shall be required to report the balance of such supplies on hand. 
This right to use such supplies as are covered in the application shaU 
cease six (6) months after the date of approval of this Code. 

Sec. 3. The folloAving practices constitute unfair methods of 
competition for members of the industry and are prohibited: 

(a) False Marking or Branding. — The false marking or branding 
of the product of this industry. 

(b) Misrepresentation or False or Misleading Advertising. — The 
making or causing or knowingly permitting to be made or published 
any false, materially inaccurate or deceptive statement by way of 
advertisement or otherwise, whether concerning the product or the 
industry, or the product, credit terms, policies, or services of any 
member of the industry or otherwise having the tendency or capacity 
to mislead or deceive customers or prospective customers. 

(c) Gorrvmercial Brihen^y. — 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 
employee, the principal of such agent or the represented party, with- 
out the knowledge of such employer, principal or party. Commercial 
bribery provisions shall not be construed to prohibit free and general 
distribution of articles commonly used for advertising except so far 
as such articles are actually used for commercial bribery as 
hereinabove defined. 

(d) Advertising Allowances. — Offering or giving advertising al- 
lowances to a trade buyer or his agents, employees, or representatives. 

(e) Price Concessions. — Giving or offering to give any direct or 
indirect price concession to a trade buyer. The term " direct or indi- 
rect price concession " means any variation from the manufacturer's 
open price, wliether by means of a rebate, allowance, payment, free 
deal, gift, or by any other means whatsoever. 

(f ) Consignment. — Shipping upon consignment to a trade buyer. 

(g) Product Standards. — (1) The sale of or offer to sell lye which 
has less than a minimum content of seventy-four (74) percent of 
sodium hydroxide. 



* See paragraph 2 of order approving this Code. 



229 

(2) The sale of or offer to sell lye which is labeled in excess of a 
maximum net weight of thirteen (13) ounces per can. 

(3) The sale of or offer to sell a case of lye containing other than 
twenty-four (24) cans or forty-eight (48) cans. 

(h) Transportation Standards. — (1) The sale of or offer to sell 
lye at prices which do not include freight charges to destination 
except in the ca.se of shipments to the United States Government, 
railroads, and steamship lines. 

(2) Making allowances for transportation charges upon a ship- 
ment by a trade buj^er to his customer, or upon a shipment from a 
trade buyer's stock to any branch thereof. 

(3) The storage of lye within the warehouse or other premises of 
a trade buyer. 

(i) Quantity Price. — No member of the industry shall offer or 
make a quantity price unless it is based upon and reasonably meas- 
ured by a substantial difference in the quantity sold and delivered. 

(j) Cash Discount Terms. — Terms otlier than two (2) percent dis- 
count for cash in ten (10) days, net payment in thirty (30) days 
from date of shipment, or one (1) percent discount for cash in 
fifteen (15) days from date of shipment, except as follows: 

(1) Terms upon shipments to or from Pacific Coast ports shall 
date from the arrival at or shipment from the Pacific Coast port. 

(k) Brokerage. — (1) The payment of a commission or brokerage 
to a broker in excess of five (5) percent of the invoice price. 

(2) The payment of a commission or brokerage to a broker if the 
same is to be used in any manner which would give any trade buyer 
a price advantage over any other trade buj'er or any ultimate con- 
sumer buyer, a price advantage over any other ultimate consumer 
buyer. 

(3) The payment of a commission or brokerage to any trade 
buyer. 

(L) Open Prices. — The sale or offer to sell lye otherwise than upon 
the basis of open prices, which shall be the effective prices on file 
with the Code Authority, except when the sale or offer to sell is for 
the purpose of meeting a competitor's price. 

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 Sub-section (b) of Section ten (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 one (1) 
of said Act and specifically, but without limitation, to the right of 
the President to cancel or modify his approval of this Code or any 
conditions imposed by him upon his approval thereof. 

Sec. 2. This Code, except as to provisions required by the Act, may 
be modified in whole or part upon the recommendation of the Code 
Authority, 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. 



230 

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 — Export 

This Code, except as to the articles relating to hours, wages, and 
general labor provisions, shall not apply to export business. 

Article XI — Effective Date 

This Code shall become effective on the fifteenth (15) day after its 
aj)proval. 



Approved Code No. 300. 
Kegistry No. 600-02. 



o 



Approved Code No. 301 
CODE OF FAIR COMPETITION 

FOR THE 

SAMPLE CARD INDUSTRY 

As Approved on February 19, 1934 



ORDER 



Apri{()VTN(; Com: of Fy\ii{ (\)mpetition vou riii: Sami'm; Caim) 

Industky 

An application liaviii<ii: boon duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, a])proved June IG, VXV.], foi- approval of a Code of 
Fair C\)mj)etition for the Samjjle Card Industry, and heai"in<;s Inning 
been duly held theicon and the annexed report on said Code, con- 
tainiji<j; lindini:;s uitli respect thereto, ha\in^ been nnuU' and directed 
to the President : 

NOW, THEREFORE, on behalf of tlie President of the Ignited 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authoi-ity vested in me by Executive Orders of the Presi- 
dent, includin<jj Executive Order N'o. G54)i-A, dated December 30, 
1933, and otherwise; do hei'eby incorporate by reference said annexed 
report and do find that said Code complies in all resp(>cts with the 
pertinent i))'ovisions 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, howevei'. that 
the i)rovisions of Article VI, Sections 2 to 9 inclusive, insofar as they 
prescribe a waitin^^ period between the filing with the Code Authority 
(i.e. actual receipt by the Code Authority) and the effective date of 
revised ])rice li.sts or revised terms and conditions of sale be and they 
arc hereby stayed pending my further order; provided further, that 
within ninety days I may direct that there be a furthei- 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 elfect of a 
condition on the ai)pi-oval of said Code. 

Hugh S. Johnson, 
Adniiivistrator for Industrial Recovery. 

Approval reconnnended : 
Geo. L. Bekky, 

Division Administrator. 

Washington, D.C, 

FeJjTuanj 19, 103J,. 

41180° 376-ll.'{ 34 (231) 



REPORT TO THE PRESIDENT 

The President, 

Tlie White House. 
Sir: This is a report of the hearing on the Code of Fair Competi- 
tion for the Sample Card Industry, conducted in Washington on 
November 1, 1933, in accordance with the provisions of Title I of the 
National Industrial Recovery Act. 

HOURS AND WAGES 

The 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 non-productive em- 
ployees OiRce employees are limited to an average of 40 hours per 
week over an eight week period. 

The minimum wage rate for hourly paid employees is 40^ per hour 
foi' males and 30c per hour for females. Office employees will receive 
a minimum wage of $16.00 per week. 

OPEN TRICE 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 
stati,stical data as he may require. 

ECONOMIC EFFECT OF TlIK CODE 

The Industry employed in 1929 approximately 2,000 jjcrsons and 
with an increase of four plants about the same number for the first 
six months of 1933. This shows an increase of 400, employees over 
the number employed in 1932. The Industry has two very sharply 
pronounced peak periods in a year and the effect of the Code will 
be to employ, during such limited periods, about 300 additional 
workers. 

From lignrcs submitted l\y nineteen to twenty-one plants in the 
Industry the payrolls had increased over 20% from April to Sep- 
tember 1933. This reflects the President's I{e-em])loyment Program 
as th(^ volume of i)i-o(hiction was o(\un\ in those two montiis. Tiie 
total j^ayrolls, a,s a result of tlie Code, will maintain this increase of 
over 20/c. 

(232) 



233 



FINDINGS 



The Deputy Administrator in his final re])ort to me on said Code 
having found as herein set forth, and on the basis of all the 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 gejieral 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 adec{uate governmental sanction and supervision, by eliminat- 
inf; 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 j-ehabilitating 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, 

Adnuni^trator. 
February 19, 1934. 



CODE OF FAIR COMPETITION FOR THE SAMPLE CARD 

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 sample cards and sample bind- 
ings, including the preparation of products for sampling. 

" Member " — A natural person, partnership, corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, receiver, or other form of 
enterprise, 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 Board of Directors of the Sample Card 
Manufacturers Association, Inc., together with such other person 
or persons as the Administrator may designate, are hereby consti- 
tuted the Code Authority of the Industry. The members of the Code 
Authority designated by the Administrator shall have no vote and 
shall serve without recompense from the Industry. 

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

3. The Administi'ator may at any time i)res(ribe a diU'erent method 
for selecting the Industry members of the Code Authority, and 
thereafter, such membei's shall be chosen in the manner so prescribed. 

4. 'I'he 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, may be 
unfair oi- unjust or contrary to the public interest, the Administrator 
may require that such action be suspended to afi'ord an oi)portunity 
for investigation of tlie merits of such action and fui'ther considera- 
tion by (lie Code Authoi-ity or ageiK'y })endiiig iinal action which shall 
not be cfreetivc unless the Achniiiistrator jipproves or unless he sliiiU 
fail to disap]jrove aftei- thii'ty days notice to him of intention to 
proceed with sucli action in its original or modified form, 

(234) 



235 

5. Tlie expenses of admin i.sterin<>- this Code shall be borne pro rata, 
in accordance with a formida 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. 

6. The Code Authority shall have power to investigate alleged vio- 
lations of this Code and acts or courses of conduct by anj^ 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 endeavor 
to effect, by arbitral proceedings or otherwise, adjustments of con- 
tracts 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 tliis Code. 

AiJTK Li: 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 : 

SCIIEniLE OF WORKING HOURS 

(a) Watchmen: Fifty-six (50) hours in any one week, but not 
more than six (G) 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 (hiy. 

(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 as 
not less than time and one-third. 

(c) Engineers, firemen, electricians: One hundred sixty-eight 
(1(58) hours in any period of four (4) consecutive weeks, provicled, 
however, that time worked in excess of nine (9) hours in any one day 
or forty-five (45) hours in any one Aveek shall be paid for as not less 
than time and one-third. 

(d) All other laborers, mechanical workers or artisans employed 
in any plant, mill or factory or on work connected with the opera- 
tion of such plant, mill or factory : 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 work 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. 

(e) Employees regularly engaged in a managerial or executive 
capacity and their personal secretaries, foremen and supervisors, 
receiving thirty-five dollars ($35.00) 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 shree hundred and twenty (320) hours in any 
peri(Kl of eight (8) consecutive weeks. 



236 

2. Xo limitations 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. Xo employer shall knowingly permit any employee to work for 
an)' time which, Avhen totaled with that ah-eady performed with 
another employer or employers in this Industry, exceeds the maxi- 
mum permitted herein. 

4. Piece work shall not bi' permitted in any brancli of the 
Industry. 

5. No employee except watchmen shall be required or permitted to 
work on Sundays, or on January 1. May 30, July 4, Thanksgiving 
Day, or December 25. 

G. No female employee, other than those covered by paragraphs 
(e) and (f) of Section 1 hereof, shall be required or permitted to 
work between the hours of 7:00 P.M. and 7:00 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 tlie operation of any such plant, mill or factory shall 
be as follows : 

Male labor. 40 cents per hour 
Female labor, 30 cents per hour. 

2. The minimum rate of wage for all otlier 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 houi'. 

3. This Article establishes a mininmm rate of pay which shall 
apj)ly irrespective of whether an emj^loyee is actually compensated 
on time-rate or other basis. 

4. Female employees performing substantially the same Avork as 
male employees, shall receive the same rate of pay as male employees. 
The Code Authority .shall within ninety (90) (hays after the effec- 
tive date of tliis ('ode file with the Administi'ator a description of 
all occupations in (he Tndusti'v in which botli men and Avomen are 
employed. 

r>. The wage rates of all emi)loyees receiving more than the mini- 
miiju I'ales herein pi-escribed shall hv, reviewed and such adjustments 
made therein as are equitable in the light of all the circumstances 
but in no case shall such adjustments involve decreases. Within 
sixty (GO) days after the effective date hereof, the Code Authority 
.shall report to the Admiiiistratoi- (he action taken by all members 
of the Industry under this Section. 

G. Office and ei'i'and boys and girls under eighteen (18) years of 
age, to tlie extent of ])o nioi'e than 5% of the total number of em- 
ployees described in Section 2 hei-eof. may be emi)loyed at a wage 
of not less tlian HO'/c of the minimum prescribed by said Section, 



237 

provided that at least one such office and/or errand boy or girl may 
be employed by each member. 

7. A person Avhose 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 Dei)artment 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 (60) days after the effective 
date of this Code. 

Article V — Genekai. Labor Provisions 

1. No person under sixteen (IQ) 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. Tlie Code Authority shall submit to the 
Administrator within sixty (00) days after the effective date of this 
Code a list of such operations or occupations. In an}^ 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 cer- 
tificates or permits, showing tliat the employee is of the required age. 

2. Employees shall ha.ve the right to organize and l)argain 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 collec- 
tive bargaining or other mutual aid or protection. No employee and 
no one seeking employment shall be required as a condition of employ- 
ment to join any compan^^ union or to refrain from joining, organiz- 
ing, 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 an^^ State or Eederal 
law which imposes on employers more stringent requirements as to 
age of employees, wages, houi-s of work, or as to safety, health, sani- 
tary or general working conditions or insurance or fire protection, 
than are imposed by this Code. 

4. No employer shall reclassify employees or duties of occupations 
performed or engage in any other subterfuge for the purpose of 
defeating the purposes or provisions of the Act or of this Code. 

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

G. 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 submitted by 
the Code Autliority to the Administrator within six (G) months after 
the effective date of this Code. 



238 

7. 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 
elate of this Code, make a re})ort of its findings to the Administra- 
tor. The Code Authority shall also submit to the Administrator 
within six (6) months after the effective date of this Code, a plan 
for the stabilization and regularization of employment. 

8. 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 
thirty (80) days prior to the date so fixed. 

3. At least ten (10) days prior to such date, every such member 
shall file witli 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 pur- 
mit 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 
tlic (hite fixed by the Code Authority as j)rovided in Section 2 hereof. 

5. A revised schedule or schedules, or a new schedule or schedules, 
or a notice of withdrawal of a schedule ])revi()usly filed may be 
filed by a member with the Code Authority at any time, ])r()vided, 
liowever, that any member who withdraws a schedule Avithout sub- 
stituting 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 here- 
under shall become effective five days after the date of filing, j)ro- 
vided, liowevei", that an inci'eased ])rice may become efFective at such 
earlier date as the member filing the same shall fix. 

0. The Code Authoiity shall ])roinj)tly 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. Innnediately u])on receipt of information 
relative to the witlidrawal of a price for any product, any member 



239 

may file notice of Avithdrawal of his own pv'ive for the same product 
effective as of the same date as the notice of Avithdrawal 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 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 an}^ product of the Industry, 
shall sell such product for less than such price or u])on terms or con- 
ditions 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 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 non- 
members at the same time that they are sent to members.* 

10. No member shall sell any product of the Industry for which 
no open price plan is in effect at less than the cost thereof to such 
member, determined as provided in Section 11 hereof, except to meet 
the price of a competitor whose price does not violate such. Section. 

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

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 complete 
information in regard to any quotation, order, contract, or sale of 
any pi'oduct of the Industry, including information as to specifica- 
tions, quantities, price, conditions of storage, transportation or de- 
liver3\ terms of billing, cash or trade discounts allowed and other 
pertinent facts relating to such quotation, contract or sale. 

* See paragraph 2 of Order approving this Code. 



240 

13. Nothino- 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 on such terms 
and conditions as the Code Authority and the Administrator may 
approve. 

14. Nothing herein contained shall be construed to prevent the ful- 
fillment of a bona fide contract existing on the effect iA^e 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 
l^lant 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 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 i)erson or persons designated by 
the Code Authority. 

2. Except as otherwise ])rovided in the Act, or in this Code, all 
statistics, data and information filed or required in accordance witli 
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. 

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

4. In addition to information re<^juired to be submitted to the Code 
Authority there shall be furnished to Government Agencies such 
.statistical information as the A(hniiiistrator may deem necessary for 
the purposes recited in Section Ji (a) of the Act. Nothing contained 
in this Code shall relieve any member of any existing obligations to 
furnish reports to any (xovernment Agency. 

Artici-i; Vm — Monopolies 

1. No provision of this Code shall be so ap])lied as to permit 
monopolies or monopolistic practices, or to eliminate, oppress or 
discriminate against small enterprises. 

Article I X — Recommendations 

1. The Code Autliority may, from time to time, ])resent to the 
Administrator recommendations based on conditions in the Industry 
which will tend to efl'ectuate the operation of this Code and the policy 
of the Act, and in pai'ticidar along the following lines: 



241 

(a) For the establishment of additional rules of Fair Trade Prac- 
tices 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 endan- 
ger 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 advisabilit}* of creating 
a Joint Industrial Ilelation.s Board for .such Industries and shall 
report its recommendations to the Administrator. 

8. Kecommendations made pursuant to Sections 1 and 2 hereof 
when approved by the Administrator shall liave the same force and 
ell'ect as other provisions of this Code. 

Akticle X — Tkade 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 thi.s Code : 

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

(e) 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, am^thing 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 prin- 
cipal of such agent or the represented party, without the knowl- 
edge of ,siich emploj^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 circumstance.s 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. 



242 

2. Any work or i>rocess 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 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 this 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. .301. 
Kegistry No. 299-1-10. 



o 



Approved Code No. 302 
CODE OF FAIR COMPETITION 

FOR THE 

CANDLE MANUFACTURING INDUSTRY AND 
THE BEESWAX BLEACHERS AND REFINERS 
INDUSTRY 

As Approved on February 20, 1934 



ORDER 



Approving Code of Fair Competition for the Candle Manufac- 
turing Industry and the Beeswax Bleachers and Refiners 
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 Candle Manufacturing Industiy and the 
Beeswax Bleachers and Refiners 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, 
l^ursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. G543-A, dated December 30, 
1933, and otherwise; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
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 Industnal Recovetn/. 
Approval recommended : 
Geo. L. Berry, 

Division Administrator. 

AVashington, D.C, 

Fehniary 20, 193^. 

41709° 376-115 34 (243) 



EEPORT TO THE PRESIDENT ^ 

The President, 

The White House. 

Sir: A Public Hearing on the Code of Fair Competition for the 
Candle Manufacturing Industry and the Beeswax Bleachers and 
Refiners Industry, submitted by the Candle Manufacturers' Asso- 
ciation and the American Beeswax Bleachers and Refiners Associa- 
tion, located at 19 West 44th Street, New York, N.Y., was conducted 
in Washington on the 22nd of November, 1933, in accordance with 
the provisions of the National Industrial Recovery Act. These 
Associations claim to represent 90 per cent of the Industries. 

The maximum hours permitted under this Code are forty (40) 
hours per week; excepted, however, are watchmen who shall be per- 
mitted to work an average of forty two (42) hours per week. Ex- 
cepted also from this provision are persons employed in a managerial 
or executive capacity who receive not less than thirty five ($35.00) 
dollars per week, commercial traveling salesmen, employees engaged 
in emergency maintenance or emergency repair work, but it is pro- 
vided that all such employees engaged in emergency work shall be 
compensated at the rate of time and one third their normal rate of 
pay for all hours worked in excess of forty (40) hours per week or 
eight (8) hours in any twenty four (24) hour period. 

The minimum wage is forty cents (400) per hour; excepted, how- 
ever, are employees engaged in light and non-hazardous occupations 
of the wicking, finishing and paclvaging departments who shall not 
be paid less than at the rate of thirty cents (30^*) per hour. It is also 
provided that there shall be no discrimination in rates of pay by 
reason of sex. 

Wage earner employment declined 8.7 per cent from 1929 to 1931. 
The largest decline occurred during the months of January and De- 
cember. For example, wage earner employment during the month 
of January was 13.0 per cent below the same month in 1929, while 
December was 13.6 per cent lower. The decline was quite irregular 
throughout the year, ranging from a decline of 2.1 per cent in June 
to 13.6 per cent in December under the respective months of 1929. 
July was the month of minimum employment during both 1929 and 
1931, while November and March were the months of maximum em- 
ployment for the respective years. 

On the basis of a 40-hour week, 107 wage earners should benefit 
through reemployment, placing more wage earners on the payroll 
than were emi)loyed during 1929. 

The value of commoditie^s produced by these industries aggregated, 
during 1929, approximately $6,686,194. During 1931, product value 
declined 19.3 per cent under the 1929 total, or to approximately 
$5,396,198. 

(244) 



245 

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 b}^ promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining imited action of labor and 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 Industries normally employ not more than oO.OOO em- 
plo3'ees; and are not classified by me as major industries. 

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant asso- 
ciations are industrial associations truly representative of the afore- 
said Industries ; and that said Associations impose no inequitable re- 
strictions on admission to membership therein. 

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

(e) The Code is not designed to and will not eliminate or ojDpress 
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. 

These Industries have cooperated in a most satisfactory manner 
with the Administrator in the preparation of this Code. From evi- 
dence adduced during this hearing and from recommendations and 
reports of the various Advisory Boards it is believed that this Code 
as now proposed and revised represents an effective, practical, equi- 
table solution for these Industries and for these reasons this Code has 
been approved. 

Respectfully, 

Htjgh S. Johnson, 

A dministratar, 
February 20. 1934 



CODE OF FAIK COMPETITION FOK THE CANDLE 
MANUFACTUKING INDUSTRY AND THE BEESWAX 
BLEACHEES AND REFINERS 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 Candle Manufacturing Industry and the Beeswax 
Bleachers and Refiners Industry, and its provisions shall be the 
standards of fair competition for such industries and shall be bind- 
ing upon every member thereof. 

Article II — Definitions 

Section 1. The term " Candle Manufacturing Industry " as used 
herein includes the manufacture and sale by manufacturers of 
candles. 

Section 2. The term " Beeswax Bleachers and Refiners Industry " 
as used herein includes the bleaching, refining and marketing by 
bleachers and refiners of beeswax in the United States. 

Section 3. The term " member of the industries " includes any 
individual, partnership, association, corporation, or other person 
engaged in the Candle Manufacturing Industry or the Beeswax 
Bleachers and Refiners Industry, either as an employer or on his or 
its own behalf. 

Section 4. The term " employee " as used herein includes any and 
all persons engaged in the industries, however compensated, except 
a member of the industries. 

Section 5. The term " employer " as used herein includes any per- 
son by or for whom such employee is engaged. 

Section 6. The terms "Act ", and "Administrator " as used herein 
shall mean respectively Title I of the National Industrial Recovery 
Act, and the Administrator for Industrial Recovery. 

Article III — Hours 

Section 1. No person engaged in clerical or office work shall be 
permitted to work in excess of forty (40) hours per week averaged 
over a two (2) week period. 

Section 2. No truck man, engineer or fireman shall be permitted to 
work in excess of eighty (80) hours in any two (2) week period. 

Skction 3. Watchmen, when employed in pairs, shall not be per- 
mitted to work in excess of thii-ty-six (30) hours per week and forty- 
eight (48) hours per week in alternate weeks, or when employed 
singly, an average of forty-two (42) hours per week. 

(246) 



247 

Section 4. No outside employee engaged in bleaching beeswax 
shall be permitted to work in excess of forty (40) hours in any one 
week averaged over a three (3) months' j)eriod. 

Section 5. No other employees except as hereinafter specified 
shall be permitted to work in excess of forty (40) hours in aii}^ one 
week, or in excess of eight (8) hours in any twenty-four (24) hour 
period. 

Section 6. The provisions of this Article shall not apply to per- 
sons employed in a managerial or executive capacity who receive not 
less than thirty-five dollars ($35.00) per week, nor to commercial 
traveling salesmen, nor to employees engaged in emergency main- 
tenance or emergency repair work, provided, however, that all such 
emj^loyees engaged in emergency v,'ork shall be compensated at the 
rate of time and one-third their normal rate of pay for all hours 
worked in excess of forty (40) hours per week or eight (8) hours in 
any twenty-four (24) hour period. 

Section 7. No employee shall knoAvingl}^ 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 emplo3'ers. 

Ajrttcle IV — Wages 

Section 1. No employee sliall be paid less than at the rate of forty 
cents (40^) per hour, except employees engaged in light and non- 
hazardous occupations of the wicking, finishing and packaging 
departments who shall not be paid less than at the rate of thirty 
cents (30^) per hour. 

Section 2. There shall be no discrimination in rates of pay by 
reason of sex, and where in any case female employees perform sub- 
stantially the same work as male employees they shall receive the 
same rate of compensation as male employees, and where they dis- 
place men, they shall receive the same rate of compensation as was 
paid to the men they displace. The Code Authority shall within 
ninety (90) days after the effective date of this Code file with the 
Administrator a description of all occupations in the industries in 
which both men and women are employed. 

Section 3. This Article establishes a minimum rate of pay whicli 
shall apply, irrespectiA^e of whether an employee is actually compen- 
sated on time rate, piece-work performance, or other basis. 

Section 4. It is the policy of the members of these industries to 
refrain from reducing the compensation for emploj'ment which com- 
pensation 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, unless since such date such adjust- 
ments have been made, all members of these industries 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. 
Within thirty (30) days after the effective date of this Code such 
adjustments made since June 16, 1933, shall be reported to the Code 
Authority. 

Section 5. A person Avhose earning capacity is limited because of 
age or physical or mental handicap may be emploj^ed on light work 
at a wage below the minimum established by this Code if the em- 



248 

ployer obtains from the State Authority designated by the United 
States Department of Labor a certificate authorizing his employment 
at such wages and for such hours as shall be stated in the certificate. 
Each employer shall file with the Code Authority a list of all such 
persons employed by him. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be em- 
ployed in the industries. No person under eighteen (18) years of 
age shall be employed at operations or occupations which are hazard- 
ous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator for approval within six (6) months 
after the effective date of this Code a list of such operations or occu- 
pations. In any State an employer shall be deemed to have com- 
plied with this provision as to age if he shall have on file a certificate 
or permit duly 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. 

Section 2. No manufacturer of the products of these industries 
shall cause or permit any part of the work of the production of his 
products to be performed at any place other than his or its factory 
premises or those of another manufacturer. 

Section 3. In compliance with Section 7 (a) of the Act, it is pro- 
vided : 

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

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

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

Section 4. No employer shall reclassify employees or duties of 
occupations performed or engage in any other subterfuge, for the 
purpose of defeating the provisions or purposes of the Act or of this 
Code. 

Section 5. No provisions in this Code shall supersede any State 
or Federal law which imposes on employers more stringent require- 
ments as to age of employees, wages, hours of work, or as to safety, 
health, sanitary or general working conditions than are imposed by 
this Code. 

Section 6. If any employer is also an employer in another industry 
the provisions of this Code shall apply to and affect only that part 
of his business whi(;h is included in the industries covered by this 
Code. 

Section 7. All employers shall post and keep posted complete 
coj^ies of the wage and hour and general labor provisions of this 
Code in conspicuous places accessible to all employees. 



249 

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

Section 1. A Code Authority is hereby established to cooperate 
with the Administrator in the administration of this Code, and 
shall consist of nine (9) members to be chosen by the industries 
as hereinafter provided through a fair method of selection approved 
by the Administrator. The Administrator, in his discretion, may 
appoint not more than three additional members, without vote and 
without compensation from the industry, to serve for such period of 
time and to represent the Administrator, or such group of groups, 
as he may designate. 

Section 2. The industry members of the Code Authority shall be 
chosen as follows : Five members who shall be chosen by the Candle 
Manufacturers Association, three members who shall be chosen by 
the American Beeswax Bleachers and Refiners Association. There 
shall also be one additional member without vote, who shall be the 
business manager of the Candle Manufacturers Association and who 
shall be the Secretary of the Code Authority. The members of 
these respective industries so chosen shall be the sole Code Authority 
for the administration and enforcement of this Code as concerns their 
respective industries. 

Section 3. Each trade or industrial association directly or in- 
directly participating in the selection or activities of the Code Au- 
thority 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 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. 

Section 4. 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 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 re- 
spects comply with the provisions of the Act, he may take such 
action as he may deem necessary under the circumstances. 

Section 5. No inequitable restrictions on admission to member- 
ship in the Candle Manufacturers' Association or the American 
Beeswax Bleachers and Kefiners Association or any other trade 
association or organized group, participating in the activities of the 
Code Authority shall be imposed, and any member of the industries 
shall be eligible for membership in any such trade association or 
organized grouj) upon compliance with the provisions of the by-laws 
relating to membership, provided that any person applying for such 
membersliip shall, in addition to the payment of such dues as are 
imposed upon and paid by all other members, accept a reasonable 
and equitable share of the cost of code administration. Such mem- 
bers of the industries 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 Administrator's approval, shall 
prescribe as fair and equitable. 



250 

Section 6. Nothing contained in this Code shall constitute tlie 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent or employee 
of the Code Authority exercising reasonable diligence in the conduct 
of his duties hereunder, nor be liable to anyone for any action or 
omission to act under the Code, except for his own willful misfeasance 
or nonfeasance. 

Section 7. The Code Authority shall have the further powers and 
duties to the extent permitted by the Act. 

(a) To administer the provisions of this Code, provide for the 
compliance of the industries with the provisions of the Act and to 
projDose and submit to the Administrator its recommendations for 
amendments ancl/or modifications of the Code, which shall become 
effective as a part of this Code upon approval by the Administrator, 
after such notice and hearing as he may specify. 

(b) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To obtain from members of the industries through the Secre- 
tary, such information and reports as are required for the adminis- 
tration 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 informa- 
tion and reports shall be submitted by members to such administra- 
tive and/or government agencies as the Administrator may desig- 
nate; provided, that nothing in this Code shall relieve an}^ member 
of the industries of any existing obligations to furnish reports to any 
govermnent agency, ^o individual reports shall be disclosed to any 
member of the industries or any other party except to such govern- 
mental agencies as may be directed by the Administrator. All indi- 
vidual reports made to the Code Authority shall be sent to its Secre- 
tary and shall be kept confidential })y him as to members of the 
in(histT-ies and only general summaries thereof may be published. 

(d) To nuike recommendations to the Administrator for the 
coordination of the administration of this Code with such other 
codes, if any, or may be related to the industries. 

(e) To designate the Candle Manufacturers' Association as an 
agency of the Code Authoi-ity for administei'ing, supervising and 
promoting the i)erformance of the ])rovisions of this Code applying 
to the Candle Manufacturing Industry, and to designate the Ameri- 
can Beeswax Bleachers and liefiners Association as an agency of the 
Code Authority for administering, supervising and prouioting the 
pei'formance of the provisions of this Code ap])lying to the Beeswax 
Bleachers and liefiners Industry, or to use any other trade associa- 
tion or agency as it deems pi'oper for the caiTying 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 pi-ovisions hereof. 

(f ) To secui'e from members of the industries who assent to this 
Code and/or participate in the activities of the Code Authority such 
propoi'tionate payment of the reasonable exp<>nses of maintaining 



251 

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 industries who 
have assented to, and are complying with, this Code. 

Section 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 investiga- 
tion 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 disapprove after thirty (30) days' notice to him of intention to 
proceed with such action in its original or modified form. 

Article VII — Trade Practice Rules 

For all purposes of the Code the acte 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 employed, any 
of such unfair practices shall be guilty of a violation of the Code. 

Section 1. 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 misrepresent any commodity, (including its use, trade-mark, 
grade, quality, quantity, origin, size, substance, character, nature, 
finish, material, content or preparation) or credit terms, values, 
policies, services, or the nature or form of the business conducted. 

Section 2. No member of the industries shall withhold from or 
insert in any quotation or invoice any statement that makes it 
inaccurate in any material particular. 

Section 3. No member of the industries shall brand or mark or 
pack an}' product of the industries in anj^ manner which tends to 
deceive or mislead purchasers with respect to the brand, grade, 
quality, quantity, origin, size, material, content or preparation or 
such commodity. 

Section 4, No member of the industries shall publish advertising 
or other representation which refers inaccurately in any material par- 
ticular to any competitors or their commodities, prices, values, credit 
terms, policies or services. 

Section 5. No member of the industries shall publish or cir- 
cularize unjustified or unwarranted threats of legal proceedings 
which tend to or have the effect of harassing competitors or intimi- 
dating their customers. 

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

Section 7. No member of the industries shall ship or deliver any 
product of these industries on consignment, or by any transaction 



252 

other than a sale, except Avith the approval of the Code Authority, 
or the Administrator, 

Section 8. Xo member of the industries 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 emploj-ee, agent or 
representative of another in relation to the business of the emploj'^er 
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 advertis- 
ing except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

Sectiox 9. Xo member of the industries shall attempt to induce the 
breach of an existing contract between a competitor and his customer 
or source of supply; nor shall any such member interfere with or 
obstruct the performance of such contractual relations. 

Section 10. No member of the industries shall provide the services 
of any sales person to any ■purchaser in connection with the sale of 
any product, unless fair compensation for such service is charged. 

Section 11. No member of the industries shall cancel in whole or 
in part, or permit the cancellation in whole or in part of any contract 
for sale of any product of the industries except for fair considera- 
tion, or by mutual consent, or by treating a breach of such contract 
as concellation thereof; nor allow to any purchaser in connection 
with the sale of any product a credit discount or concession not 
specified in the contract of sale. 

Section 12. No member of the industries shall secure or attempt 
to secure confidential information concerning the business of a com- 
petitor by a false or misleading statement or representation, by a 
false impersonation of one in authority, or by bribery or by any other 
unfair method. 

Section 13. No member of the industries shall aid or abet any 
person, firm, association or corporation in any unfair trade practice 
prohibited by this Code. 

Section 14. No member of the industries shall make or give to 
any purchaser of any products of these industries a guarantee or pro- 
tection in any form against decline in the nuirket price of such 
products. 

Section 15. No member of the industries shall maliciously entice 
any employee of a competitor from his employment with the purpose 
or effect of injuring or embarrassing such competitor in his business. 
Nothing herein shall preA'ent any employee from offering his services 
to a competitor, or prevent any member from employing an employee 
of another member where the initiative in such change of employ- 
ment comes from the employee. 

Section 10. No member of the industries .shall make any donation, 
gift, advertising subscription or gratuity in connection with the sale 
of any product of the.se industries or as an inducement tliereto. 
Nothing contained heroin shall prohiV)it the free and general distri- 
bution of articles used .solely for advertising, nor shall anything in 
this section be construed to alter the provisions of Section 8 of this 
Article. 



253 

Section 17. No member of the Candle Manufacturing Industry 
shall sell any product of that mdustry, except as specificallj'^ provided 
in Section 18 of this Article, on terms of sale more favorable than 
2%, ten days E.O.M. 

Sectiox 18. No member of the Candle Manufacturing Industry 
shall sell votive candles, votive lights or sanctuary candles, other 
than candlemas order, on terms of sale more favorable than 2% cash 
discount, ten days, ninetj^ days net. Candlemas terms shall be net 
and shall include full j-ear's requirements. 

Section 19. No member of these industries shall permit any buyer 
to return any merchandise ^A-hich has been in the buyer's hands for 
more than ten (10) days, when the agreement of sale is fully per- 
formed by such member. 

Section 20. No member of the Candle Manufacturing Industry in 
the Church Candle Field shall give any cash or merchandise rebates 
in any form. The free distribution of Paschal Candles, Triples, 
Votive Stands, Glasses, or other free merchandise as premiums or 
otherwise, shall be discontinued. 

Section 21. No member of the Candle Manufacturing Industry 
shall make any advertising donations to any one candle account in 
excess of the value of five dollars ($5.00) per year. Authority to 
make such donations shall not be delegated to salesmen but shall be 
retained b}' sales executives. 

Section 22. No member of the Candle Manufacturing Industry 
shall sell any candles other than '• firsts." No " seconds " shall be 
sold. 

Section 23. No member of the Beeswax Bleachers and Refiners 
Industry shall sell or offer for sale any product of that industry 
other than 100% pure beeswax, bleached or refined, unless such prod- 
uct is labeled in a conspicuous manner as a composition wax. 

Section 21. No member of the Beeswax Bleachers and Refiners 
Industry shall sell any products of that industrj^ on t<^rms of sale 
more favorable than one per cent (1%), ten days, E.O.M. 

Section 25. No member of these industries shall sell or offer for 
sale any products of these industries at a price lower or on terms 
more favorable than those which he has currently on file with the 
Code Authority as provided for in Article IX of this Code. 

AbticLcE VIII — Pkoducti\'E Capacity 

Based on conditions in these industries and in this period of emer- 
gency and to effectuate the operation and provisions and policy of 
the National Industrial Recovery Act, the following regulations are 
established : 

Section 1. No person engaged in these industries or for the pur- 
pose of engaging in these industries shall purchase, manufacture, 
lease or otherwise obtain or use productive machinery not owned, 
leased or otherwise held by such person prior to the effective date of 
this Code, except by applying to the Code Authority and obtaining 
permission of the Administrator upon his finding that the gTanting 
of such permission is consistent with effectuating the policy of the 
National Industrial Recovery Act; but nothing contained herein 
sliall be construed to prevent the replacement by a member of these 



254 

industries of procluctive machinery of equal productive capacity 
existing on the effective date of this Code or the transfer of produc- 
tive machinery from one manufacturer to another person provided 
same was in use prior to the effective date of this Code, and provided 
further that such transfer does not have the effect of creating addi- 
tional productive machinerj^ within the industries. 

Section 2. No member of the Candle Manufacturing Industry 
shall engage in the manufacture in any of the three recognized fields 
of production, namely, fancy candles, church candles including votive 
lights, or common and house-hold candles if he has not engaged in 
that field at some time during the period of two years immecliately 
prior to the effective date of this Code, except by applying to the 
Code Authority and obtaining permission of the Administrator upon 
his finding that the granting of such permission is consistent with 
effectuating the policy of the National Industrial Recovery Act. 

Sectiox 3. The provisions of this article shall cease to be effective 
on the expiration of one year from the effective date of this Code, 
provided, however, that prior to that time the Code Authority may 
submit to the Administrator its recommendation that said period be 
extended, based on such information as may be required and if the 
Administrator finds upon such information and facts that a further 
extension of this period is consistent with and further effectuates the 
policy of the National Industrial Recovery Act, he may declare the 
provisions of this article to be operative for such longer period and 
under such conditions as he may find necessary to further effectuate 
the policy last herein mentioned. 

Article IX — Open Price Schedui,es 

Sectiox 1. Each member of the industries shall, within ten (10) 
days after the effective date of this Code, file with the Code Author- 
ity, his net price lists, or price lists and discount sheets, as the case 
may be, individually prepared by him, showing his current prices, 
or prices and discounts then in effect, or to be charged for all grades 
and kinds of products of the industries to be sold, or offered for sale 
to dealers, agents and consumers by such member together with all 
t^rms and conditions at which he proposes to sell, and such lists shall 
become effective immediately upon the date filed with the Code 
Authority' (i.e. actual receipt by the Code Authority), or sixty (60) 
days after the effective date of this Code, they shall become effective 
after such period of time as shall hereafter be established by the Code 
Authority with the approval of the Administrator. 

Sectiox 2. Revised price lists, or revised price lists and discount 
sheets, may be filed with the Code Authority at any time thereafter, 
by any member, to become effective immediately upon the date filed 
with the Code Authority (i.e. actual receipt by the Code Authority), 
or sixty (GO) days after the effective date oi this Code, they shall 
become effective after such period of time as shall hereafter be 
established by the Code Authority with the approval of the 
Administrator. 

Section 3. Upon receipt from any member of the industries of 
any original or revised price lists, discounts, terms or conditions, the 



255 

Code Authority shall immediately make the same available to any 
member of the industries and to any other interested party upon 
request therefor. The original price lists filed by each member of 
the industries shall be numbered one. and all subsequently revised 
price lists or changes shall be numbered serially. 

Section 4. If, at any time, the Code Authority shall find that any 
price lists submitted by an individual member of the industries 
represent sales below cost as prohibited by Article X of this Code, 
the Code Authority may require such member to furnish a detailed 
analysis, showing how such costs were determined, and if the Code 
Authority feels, after the submission of such analysis that the price 
lists represent figures below cost, as defined in this Code, it may 
present the same to the Administrator for appropriate action. 

Sectiox 5. The requirements of this Article shall apply only to 
products sold, or offered for sale to customers located in the United 
States and its possessions. 

Article X — Sales Below Cost 

Section 1. The Code Authority shall set up adequate cost systems 
capable of uniform application within the industries, which, when 
approved by the Administrator, shall be used by all members of the 
industries as a basis for proving or determining cost of products of 
these industries. Thereafter, the Code Authority shall formulate 
and present for the approval of the Administrator a definition of 
the term " representative member of the industries." After approval 
of this definition no member of the industries shall sell or olfer to sell 
any products below the lowest cost of any representative member 
of these industries as determined by the Code Authority and 
approved by the Administrator. 

Article XI — Incidental Manufacturing Processes 

Any work or process incidental to and carried on by a member at 
his plant as a part of the manufacture of his products shall be 
regarded as a part of these industries and shall be governed by the 
provisions of this Code. 

Article XII — 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 sub-section (b) of Section 10 of the Act, from time to 
time to cancel or modify any order, approval, license, rule, or 
regulation issued under the Act. 

Section 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 hearings as he 
shall specify, and to become effective on approval of the President 
unless otherwise provided. 



256 
Article XIII — IMonopolies, etc. 

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

Article XIV — Effecti\t: Date 

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



Approved Code No. 302. 
Registry No. 625-01. 



o 



Approved Code No. 303 
CODE OF FAIR COMPETITION 

FOR THE 

CORDAGE AND TWINE INDUSTRY 

As Approved on February 21, 1934 



ORDER 



Approving Code (if Fair Co:MPETinoN for the Cordage and Twine 

Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I oi the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of Fair 
Competition for the Cordage and Twine 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 December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in ail 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 Couipetition be and it is hereby approved. 

Hugh S. Johnson, 
Adminktrator for Industrial Recovery. 
Approval recommended : 
Geo. L. Berry. 

Division Administrator. 

Washington, D.C, 

Fehmary 21, 1931^. 

41825° 376-117 34 (257) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : A Public Hearing on the Code of Fair Competition for the 
Cordage and Twine Industry, submitted by the Cordage Institute, 
located at 60 East 42nd Street, New York, N.Y., was conducted 
in Washington the 1st of November, 1933, in accordance with the 
provisions of the National Industrial Recovery Act. The Institute 
claims to represent approximately TO percent of the Industry. 

The maximum hours permitted under this Code for productive 
employees and those engaged in axicounting, clerical or office work 
are forty (40) per week; non-productive employees are permitted to 
work 44 hours per week with time and one-third for all hours worked 
by this class of employee in excess of 44 per week. 

The minimmn wage is thirty cents (30^;) per hour in the South 
and thirty -two and a half cents (321/2^) per hour in the North. 
The minimum rate of pay for office, accounting and clerical em- 
ploj^ees is fourteen dollars ($14.00) per week. Provision is made 
for an equitable adjustment of wages above the minimuni. 

The value of cordage and twine has decreased approximately 48 
percent between 1929 and 1931, and it is probable that 1932 figures 
v/ill show still further decrease. This decline has been partly due 
to lower prices and partly to the increase in imports, imports of 
binder twine have increased from 19 million pounds in 1929 to oyer 
42 million pounds in 1932. There has been a considerable falling 
off in the demand of rope by the shipping trade, and until there is 
an upturn in world trade, there cannot be a stronger demand for 
rope from this source. 

On the basis of the 40 hour week it is estimated that employment 
will be increased 19% and that there Avill be a 20% increase in pay- 
rolls. Unlike most industries tlie number of wage earners employed 
in 1929 did not represent the peak of employment. Figures com- 
piled show that between 1926 and 1929 employment declined ap- 
proximately 20%. The decline has continued since 1929. In June, 

1932 only about 3,800 wage earners were reported but by June, 

1933 the number had arisen to around 4,050. 

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 tin's matter; 

I find that: 

(a) Said ('ode is well designed to ])romote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, inc-lud- 
ing removal of obstructions to the free flow of interstate and for- 
eign commerce which tend to diminish the amount thereof and will 

(258) 



259 

provide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanctions and supervision, 
by eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue 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 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 evi- 
dence adduced during this hearing and from recommendations and 
reports of the various Advisory Boards it is believed that this Code 
as now proposed and revised represents an effective, practical, 
equitable solution for this Industry and for these reasons this Code 
has been approved. 
Respectfully, 

Hugh S. Johnson, 

Adnvimstrator. 
February 21, 1934. 



CODE OF FAIR COMPETITION FOR THE CORDAGE AND 
TWINE 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 Cordage and Twine Industry and shall be the standard of 
fair competition for this industry and binding upon every member 
thereof. 

Article II — Definitions 

1. The term " United States " shall mean and include the forty- 
eight States, the District of Columbia, the territories of Alaska and 
Hawaii, the Canal Zone, Puerto Rico and the Virgin Islands. 

2. The term " Cordage and Twine Industry " as used herein shall 
mean the manufacture, and/or sale by manufacturers, within the 
United States, as defined in Section 1, of cordage, including cables, 
tarred or untarred, composed of three or more strands, each strand 
composed of two or more yarns and/or cords and twines, including 
binder twines, tarred or untarred, single or plied, wholly or in chief 
value of Manila (abaca), sisal, henequen or other hard fiber, and 
cordage, twines and/or ply and yarn goods, commonly known as 
tarred hemp goods, 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 hearings as 
he may prescribe. 

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

5. The term " productive machinery " as used herein means and 
includes preparation, spinning, twisting, laying and/or finishing 
machinery. 

6. The term " unfair trade practice " as used herein means an 
unfair method of competition. 

7. The terra " productive employees " as used herein, shall mean 
those employees engaged in the actual preparation, spinning, twist- 
ing, laying and/or finishing of cordage and/or twine whether such 
work consists of manual work or operation of machinery. 

8. The term " non-productive employees " as used herein, shall 
mean all employees of this industry who are not included within 
the definition of productive employees. 

9. The term "Act " and "Administrator " as used herein, means 
respectively Title I of the National Industiial Recovery Act and 
the Administrator for Industrial Recovery. 

(2G0) 



261 

Article III — Divisions 

1. The Cordage and Twine Industrj^ shall be divided into the fol- 
lowing Divisions : 

(a) Cordage, including tarred hemp goods. 

(b) Wrapping twine, including lath yarn and all ply and j^irn 
goods, except binder twine. 

(c) Binder twine. 

Article IV — Hours 

1. Except as hereinafter provided the hours of employment of all 
employees shall be as follows : 

(a) No non-productive employee engaged in accounting, clerical 
or office work and no productive employee shall be permitted to work 
in excess of forty (40) hours in any one week, except that any such 
employee may be employed forty-eight (48) hours in any one week, 
provided that his average employment for any calendar quarter does 
not exceed forty (40) hours per week. Productive employees shall 
receive time and one-third for any work over forty (40) hours in 
any week. 

(b) No non-productive employee not included in above Subsec- 
tion (a) (such as repair shop crews, engineers, electricians, super- 
visors, cleaners, oilers, firemen, shipping crews and/or watchmen) 
shall be employed in excess of forty-four (44) hours per week, ex- 
cept for emergenc}^ work hereinafter provided for, and any such 
work in excess of forty-four (44) hours per week shall be paid 
for at the rate of time and one-third. 

2. Non-productive employees may be emploj-ed overtime on emer- 
gency work, provided a report of such emergency work is made the 
first of each month to the Code Authorit}^ 

3. The maximum hours provided shall not apply to employees en- 
gaged in an executive, managerial or supervisory capacity, inside 
salesmen, clerical, accounting and office employees, any of whom re- 
ceive thirty-five dollars ($35.00) per week or more, nor to outside 
salesmen. 

4. 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 V — Wages 

1. The minimum wage that shall be paid by members of the in- 
dustry to any emplo3'ee shall be thirty cents (30^>) per hour in 
Virginia, North Carolina, South Carolina, Georgia, Florida, Ala- 
bama, Mississippi, Arkansas, Tennessee, Texas and Louisiana, and 
thirty-two and a half cents (32i/^^) per hour in all other States 
and the District of Columbia. 

2. The minimum rate of pay for office, accounting or clerical 
employees, shall be fourteen dollars ($14.00) per week. 

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

4. Every member of the industry shall increase the rate of pay of 
all employees paid either by the hour or piece, if not increased prior 



262 

to the effective date of this Code, and shall increase the rate of pay 
for all employees paid by the day, week or month, now receiving 
less than thirty-five dollars ($35.00) per week, if not increased prior 
to the effective date of this Code, to not less than ninety percent 
(90% ) of the rates paid by said member of the industry, or his 
predecessor in business, for the same class of work at the same 
place of business in June, 1929, provided that no employee shall be 
paid less than the minimum fixed in this Code. All such increases 
made since June 16, 1933 shall be reported to the Code Authority 
to insure that the prevailing rate for the same class of work in the 
manufacturing district in which the place of business is located shall 
govern the application of this provision. Sixty (60) days after the 
effective date of this Code, the provisions of this Section shall be 
reviewed by the Administrator and revised in such manner as may 
in his opinion be necessary to effectuate the purposes of the Act. 

Article VI — General Labor PR0^^SI0NS 

1. No person under sixteen (16) years of age shall be employed in 
the Corclage and Twine Industry; nor any person under eighteen 
(18) years of age at operations or occupations which are hazardous 
in nature or dangerous to health. The Code Authority shall submit 
to the Administrator 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 a^e. 

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

(a) That emploj^ees 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 m other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection. 

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

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

3. No provision in this Code shall supersede any law, State or 
Federal, which imposes on employers more stringent requirements as 
to age of employees, wages, hours of work .or general working con- 
ditions than are imposed by this Code. 

4. No employer shall, for the purpose or with the effect of defeat- 
ing the provisions of this Code, reclassify employees or duties of 
occupations performed as tliey existed on October 17, 1933. 

5. Each emph)yer shall post and keep posted copies of Articles IV, 
V, VI and X of this Code in conspicuous places accessible to all 
employees. 

6. If any employer of labor in the Cordage and Twine Industry is 
also an employer of labor in any other industry the provisions of this 



263 

Code shall apply to and affect only that part of his business which is 
engaged in the manufacture of cordage and twine, as herein defined. 

7. Temporarily and until further order of the Administrator, 
operation of productive machinery shall be limited to two forty (40) 
hour shifts per week, 

(a) The Code Authority may grant exceptions to the above pro- 
vision subject to review of the Administrator. 

Article VII — Administratiox 

ORGANIZATIOX AND CONSTITUTION 

1. A Code Authority is hereby established to cooperate with the 
Administrator in the administration of this Code and shall be chosen 
by the industry through a fair method of selection, approved by 
the Administrator, to serve for a period of one (1) year from the 
date of its selection. The Administrator in his discretion may ap- 
point not more than three (3) additional members without vote, and 
without compensation from the industry, to serve for such period 
of time and to represent the Administrator or such group or groups 
as he may designate. 

(a) 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 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. 

(b) In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with 
the provisions of the Act, the Administrator may 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. 

(c) Members of the industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority and to 
participate in the selection of the members thereof by assenting to 
and complying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. Such 
reasonable share of the expenses of administration shall be deter- 
mined by the Code Authority, subject to review by the Administra- 
tor, on the basis of volume of business and/or such other factors 
as may be deemed equitable. 

2. 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, and to 
propose amendments, exceptions and/or modifications and submit 
them to the Administrator for his approval; such amendments and/or 
modifications, when approved, shall become a part of this Code and 
have the same force and effect as if originally incorporated herein. 

41825° 376-117 34 -2 



264 

(b) To adopt by-laws 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 Cotle and to 
provide for submission by members of such information and reports 
as the Administrator may deem necessary for the purposes recited 
in Section 3 (a) of the Act, which information and reports shall be 
submitted by members to such administrative and/or government 
agencies as the Administrator may designate; provided that nothing 
in this Code shall relieve any members of the industry of any existing 
obligations to furnish reports to any government agency. No indi- 
vidual reports shall be disclosed to any other member of the industry 
or an}' other party except to such administrative and/or govern- 
mental agencies as may be directed by the Administrator. 

(d) To make economic studies of costs and selling prices, with 
due regard to capital investments and other factors, and repoi't to 
the Administrator the results thereof with such recommendations in 
connection therewith as may in its opinion tend to effectuate the pur- 
pose of this Code. 

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

(f) To make recommendations to the Administrator for the coor- 
dination of the administration of this Code with such other codes, 
if any, as may be related to the industry. 

(g) To secure from members of the industry who participate in 
this Code or in tlie activities of the Code Authority such propor- 
tionate paj'ment of the reasonable expenses of maintaining the Code 
Authority as may be determined by the Code Authority and approved 
by the Administrator. 

(h) To cooperate with the Administrator in regulating the use 
of any N.R.A. insignia solely by those members of the industry who 
have assented to, and are complying with, this Code. 

(i) To recommend to the Administrator further fair trade prac- 
tice jjrovisions to govern members of the industry in their relations 
with eacli other or with other industries and to recommend to the 
Administrator mcasuro^s for industrial planning, including stabiliza- 
tion of employment. 

(j) Each member of tliis industry shall install and maintain an 
adequate cost finding method, aj^proved by the Code Authority and 
the Administrator, in order that comparable cost data for the entire 
industrv may be available for such purposes as provided bv this 
Code. 

(k) No manufacturer in any Division shall be required to furnish 
any infoi-mation, data or re])()rt.s not r(M|uire(l of all other manu- 
facturers in the same Division excejit where such ijiformation, data 
or rc|)orts may be recpiired in connection with an investigation of 
;in alleged violation of the Code. 

(1) If the Administrator shall determine that any action of a 
Code Authority or any agency thereof may be unfair or unjust or 



265 

contra rv to the public interest, the Administrator may require that 
such action he suspended to afford an opportunit}' for investigation 
of the merits of such action and further consideration by such Code 
Authority or agency i>ending final action which shall not be effective 
unless the Administrator ai3proves or unless he shall fail to dis- 
approve after thirty (30) days' notice to him of intention to pro- 
ceed with such action in its original or modified form. 

Article VIII — Prison AL\de Products 

1. No member of this industry shall purchase for sale or resale, 
or sell or offer for sale, or otherwise distribute any cordage or twine 
manufactured or produced, in whole or in part, in any penal or 
reformatory institution, or produced or manufactured, in whole or 
in part, by prisoners, except prisoners on parole or probation. 

2. Provided, however, that tlie provisions of Section 1 hei-eof shall 
not apply to any cordage or twine produced in anj' penal or reforma- 
tory institution in, or by the prisoners of a State of the United States 
which has entered into and is complying with and making effective a 
compact or a binding agreement of any other nature, which satisfies 
the Administrator that cordage or twine produced in whole or in part 
in such institution or by the inmates thereof (with the exception of 
cordage and twine produced by any prison solely for the use of tax 
supported institutions, agencies, departments or activities of any 
State or its political subdivisions) is manufactured, sold and distrib- 
uted onlj' upon a fair basis of competition with similar merchandise 
produced by private domestic industry, but otlierwise Section 1 hereof 
shall apply to such prison-made products. 

3. The Code Authority shall promptly present to the Administra- 
tor all facts pertaining to the problem of convict-labor competition 
affecting the cordage and twine industry. 

Artk EE IX — Productrte Machinery 

1. Temporarity and until further order of the Administrator, no 
manufacturer engaged in the Cordage and Twine Industry, and no 
I)erson, partnership or corporation, for the purpose of engaging in 
the Cordage and Twine Industry, shall purchase, manufacture, lease 
or otherwise obtain or use. productive machinery not owned, leased 
or otherwise held prior to the effective date of this Code, except by 
securing a certificate from the Administrator, upon application 
througli the Code Authority, certifjnng that the obtaining, manu- 
facturing, or use of such additional productive machinery is consist- 
ent Avith effectuating the policy of the National Industrial Recovery 
Act : nothing herein shall be construed as preventing the replacement 
of productive machinery, of equal or less productive capacity, exist- 
ing on the effective date of this Code or the transfer of productive 
machinery from one manufacturer to a subsidiary manufacturer. 

Article X — Evasion 

1. Xo member of the industry shall engage in any subterfuge for 
the purpose or with the effect of defeating the provisions of this Code 
or the intent and j^urposes of the Act. 



266 

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, 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 mo- 
nopolies or monopolistic practice, or to eliminate, oppress, or discrim- 
inate against small enterprises. 

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 
increases except such as may be required to meet individual cost 
should be delayed, but when made such increases should, so far as 
possible, be limited to actual additional increases in the seller's costs. 

Article XIV — Effective Date 

1. This Code shall become effective fourteen (14) days after its 
approval by the Administrator. 

Article XV — Supplementary Provisions 

1. The following schedules (a and b, inclusive) are supplementary 
to, and constitute part of, the Code of Fair Competition for the 
Cordage and Twine Industry. Such schedules apply respectively to 
those particular Divisions of the Cordage and Twine Industry indi- 
cated by the specific headings. 

Approved Code No. 303. 
Registry No. 210-1-01. 



SCHEDULE "A" 
Division fob Manufaottjrers of Oobdagb and WEApprNO Twinh 

1. Filing Pnce Lists. — (a) Each member of this Di^'ision of the industry, 
within five (5) days after the effective date of this Code, shall file and main- 
tain on file with the Code Authority, a schedule of prices, together with re- 
visions of same from time to time, as inclusive as the Code Authority, with 
the approval of the Administrator, shall determine. Each schedule shall 
show the selling prices for (1) cordage products made by such member, and 
(2) wrapping twine products made by such member. No member shall make 
any change in such selling prices except as otherwise provided herein. Each 
such schedule shall become effective on the date of receipt by the Code Au- 
thority. No price schedule of any member of this Division shall be increased 
within a period of five (5) days after any decrease in such member's sched- 
ule. Such price schedules shall be available to anyone in interest. 

(b) No member of this Division shall sell, or offer to sell, any cordage or 
wrapping twine, directly or indirectly, at a price other than that specified 
in his current schedule on file with the Code Authority or modify the sched- 
ule by any subsequent concessions made either directly or indirectly, except 
that any member of this Division may deviate from such price schedule to 
meet actual competition on a comparable item, provided that he make im- 
mediate report of such deviation to the Code Authority with such relevant 
facts as the Code Authority may require. 

2. Relationship of Costs. — (a) The Code Authority, at such time and after 
such study as it may deem proper, shall recommend to the Administrator the 
relationship of costs and/or differentials; first, as to bolt rope, drilling cables, 
and transmission rope, and as to #1 and #2 Manila and #1 and #2 sisal 
cordage, as between and affected by grades, put-ups, sizes, special treatments 
and constructions (not patented) having a significant effect on costs and 
special sales conditions and arrangements ; and second, as to all products 
included in R92-32, United States Department of Commerce Simplified Prac- 
tice Recommendations, as between and aft'ected by classes, sizes, put-ups, con- 
struction, varying treatments and construction (not patented), having a sig- 
nificant effect on cost and special sales conditions or arrangements. 

(b) The Administrator may approve, disapprove or modify these recommen- 
dations. 

(c) After approval by the Administrator no member of this Division shall 
file a schedule of prices which does not conform to such relationship as here- 
inabove provided in Section 2 (a). 

3. Trade Discounts, Commissions, AUmcances, Etc. — (a) The Code Authority, 
subject to the approval and with the advice of the Administrator, may from time 
to time arrange for conferences of all interested parties, including all classes of 
secondary sellers, or the Code Authority governing them, for the purpose of 
recommending to the Administrator the establishment of such commissions, 
trade discounts and/or allowances which in its opinion, will be fair and reason- 
able in relation to the nature and extent of the distributing services and func- 
tions rendered by each buying class. 

(b) The Administrator may approve, disapprove or modify these recommenda- 
tions. 

(c) After such discounts, commissions and/or allowances shall have been 
approved by the Administrator upon such notice and hearing as he may deem 
necessary, it shall be an unfair trade practice for any member to sell any product 
included in this division with a discount, commission or allowance in excess of 
those approved. 

(d) If the Code Authority recommend and the Administrator approves, the 
discount, commission and/or allowance of any secondary seller shall be 
decreased by any member, w^hen to the knowledge of said member, the secondary 
seller allows any customer any discount, commission and/or allowance in excess 

(267) 



268 

of the discount, commission and/or allowance approved by the Administrator 
as herein provided for a customer of the same class. The decrease in the dis- 
count, commission and/or allovrance shall equal and not exceed the decrease 
In the discount, commission or allowance given by said secondary seller to 
his customer. 

(e) Members of this Division may appoint mill agents or distributors for 
the sale of first ; cordage to jobbers and wholesalers, or second ; wrapping twine 
to merchants and other retail sellers of wrapping twine, upon the following 
conditions : 

(1) Where such mill agents or distributors agree to abide by the Code of 
Fair Competition for the Cordage and Twine Industry with respect to the 
sale and distribution of cordage and wrapping twine. 

(2) Where said mill agent or distributor sells cordage or wi-apping twine in 
a specified territory exclusively for the account of one member of this Division, 
except in cases where the member of the Division, supplying said mill agent 
or distributor, is unable to supply the necessary item or product. 

(3) Where said mill agent or distributor is exclusive with said member in 
the specified territory, which teritory shall not be less than the corporate 
limits of any city or town. 

(4) Where (a) the billing is done by tlie member or (b) if the mill agent 
or distributor does the billing, invoices shall include the name of the manu- 
facturer of the product and copy of all invoices shall be sent on the first of 
each month to the manufacturer and commissions to mill agents or distributors 
shall be based on said invoices. 

(5) Names of all mill agents and distributors shall be filed with the Code 
Authority and made known to each and every member of the Cordage and 
Twine Industry. 

(f) Nothing in this section shall be construed to abridge the right of manu- 
facturers to sell direct to any customer in any territory or the right of any 
customer to buy direct from any member. 

4. Freight Charges. — (a) The Code Authority shall recommend to the Admin- 
istrator a zoning plan for freight charges, including drop shipment charges. 

(b) The Administrator may approve, disapprove or modify these recom- 
mendations. 

(c) Such plan when approved by the Administi-ator, shall remain in effect for 
six (6) months from the effective date of this Code or until changes are made 
in same by the Administrator or by the Code Authority with the approval of 
the Administrator. 

(d) No member of this Division shall sell or offer to sell any product of this 
division except in accordance with such plan when so approved. 

5. Terms and Discounts. — (a) No member of this Division shall allow any 
cash discount in excess of two percent (2%), ten (10) days, thirty (30) days 
net, from date of invoice, except upon authorization of the Code Authority. 

(b) No member of this Division shall make or give to any purchaser of any 
product any guarantee or protection in any form against decline in the market 
price of such product. 

(c) No member of this Division shall date any invoice of any cordage or 
wrapping (wine subsequent to the date of the shipment of such cordage or 
wnippliig twine, or include in any invoice any cordage or wrapping twine 
f^liipped on a date earlier Ihan the date of such invoice. 

((I) No momhcr of (his Division shall invoice any cordage or wrapping twine 
at j)rir-es which do not reflect the actual return to the seller. 

(e) No member of this Division shall settle any account except in exact 
accordance wi(h (lie terms and de(:iils of the invoice; nor directly or indirectly 
give rebales. refunds oi- unfair credits or allowances, whe{her in the form of 
money or odiervvise. Tiiis provision shall not apply to settlement with insolvent 
deb(r)rs. 

(f ) Eacli member of this Division shall show on his invoice and each copy 
(hereof his individual list price, together with any discount, commission or 
d' duc(ions allowed by him relative to the sale covered by such invoice. 

6. Oontrartnal Terms. — (a) No member of this Division shall sell or offer 
for sale any cordage or wrai»ping twine: 

(1 ) IJ^nless order is acconi))anied by definite specifications. 

(2) Unless offers to sell are subject to change, without notice, except offers 
to sell to Federal, State or local governments, which may be subject to 
acceptance within ten (10) days after opening of bids. 



269 

(8) Unless such offers to sell are for immediate shipment, except wtiere sales 
for future delivery are (a) at a definite price with a definite shipping date; or 
(b) are without price, the price to be the member's price prevailing at time of 
shipment. 

(4) Except on a gross weight basis. 

(5) Where the markings on the product or the Invoice covering same show 
net weight or tare. 

(6) Where the product is not covered, protected or lashed in the usual custom 
of the trade, as prescribed by the Code Authority with the approval of the 
Administrator. 

(7) For the purpose of determining the observ'ance of the above provisions, 
copies of all orders and invoices shall be made available to the Code Authority 
on demand. 

7. Price mid Competitive Practices Investigatioti. — (a) The Code Authority 
shall investigate such prices and competitive practices as in its opinion tend 
to defeat the purposes of the National Industrial Recovery Act and shall then 
make its recommendations to the Administrator who may approve, modify or 
deny such recommendations. 

8. Simplified Practice Recomm-endation. — (a) No member of this Division 
shall manufacture or cause to be manufactured, except as othenvi.'^e authorizetl 
by tlie Code Authority, subject to review by the Administrator, products included 
in the Wrapping Twine Division, on and after ninety (90) days after the 
effective date of this Code or sell, or offer to sell, any product which does not 
comply with the provisions of Simplifietl I*ractice Recommendation R92-32, as 
promulgated by the United States Department of Commerce, except as provided 
in Section 10 for the disposal of Distress Merchandise. 

(b) The Code Authority, with the approval of the Administrator, shall develop 
a simplified practice recommendation program for cordage, with the assistance 
of the Division of Simplified Practice of the United States Department of 
Commerce, which program shall be submitted to the Administrator as an 
amendment to this Code. 

(c) Upon the expiration of thirty (30) days after the effective date of this 
Code, no member of this Division shall manufacture or cause to be manufac- 
tured products included in the Cordage Di^^sion or upon the expiration of six 
(6) months after the effective date of this Code, sell or offer to sell any such 
product, except as provided in tills Section, or as otherwise provided by the 
Code Authority, or as provided in Section 10 of this schedule. 



(d) Trade Designations; 



Becker reflectance values 



Bolt rope 

No. 1 Manila, 2H cir. & larger 

No. 1 lilanila, smaller than 2}^4 cir 

No. 2 Manila, 2H cir. & larger 

No. 2 Manila, smaller than 2M cir 

No. 1 Sisal (Java & comparable fibers) (stainless) 

No. 2 Sisal (henequen and comparable fibers) (stainless) 




Maximum 



(') 



(') 



1 No limitation. 



(e) The term "Becker Reflectance Value" shall be defined and the tests for 
same shall be as provided in Federal Specifications T-R-601 for Manila Rope ; 
such tests shaU be made on samples with tlie oil extracted from same. 

(f ) Nothing hereinabove shall be construed to prohibit the manufacture and 
sale of drilling cables, transmission rope, lariat, yacht products (yacht lariat), 
tarred hemp products, heart ropes, or specially treated ropes (where treatment 
discolors the fiber permanently). 

(g) Special treatments and special constructions of cordage shall be limited 
to No. 1 and higher grades of Manila. 

(h) When the Code Authority, with the approval of the Administrator, au- 
thorizes the manufacture of any product or products, not specially provided for 
herein, all members of this Division shall be provided with a copy of such 
changes. 



270 

9. Identification. — (a) No member of this Division shall, sixty (60) days after 
the effective date of this Code, manufacture or cause to be manufactured, or, 
six (6) months after the effective date of this Code, sell or offer for sale, any 
No. 1 or No. 2 Manila cordage and higher grades, or thirty (30) days after the 
effective date, sell or offer for sale any wrapping twine, without positive identifi- 
cation of manufacturer and grade, in sucli manner as the Code Authority may 
determine, except as provided in Section 10. 

10. Distress nierohmvdise. — (a) No discontinued, obsolete or distress mer- 
chandise, shall be sold by any member of this Division, except upon approval 
by the Code Authority, which approval shall promptly be given unless the sale 
will result in unfair competition or otherwise not effectuate the purposes of 
the Act, or as provided in Sections 8 and 9 of this Schedule, subject to review 
by the Administrator, and such merchandise shall be clearly marked " discon- 
tinued ", " obsolete " or " distress " merchandise on the invoice, order or other 
papers in connection therewith. All applications made hereunder to the Code 
Authority shall include a statement of the character of the goods involved and 
the reasons for the application. 

11. Samples. — (a) No member of this Division shall give away free samples 
of wrapping twine in excess of ten (10) pounds or give away free samples 
of cordage longer than ten (10) feet, except for specimens to be used for 
tensile strength tests. 

12. General Trade Practices. — The following constitute unfair methods of 
competition and are prohibited : 

(a) No member of tliis Division shall procure, otherwise than by consent, 
any information concerning the business of another manufacturer which is 
properly regarded as a trade secret or confidential within its oi-ganization, 
other than information relating to a violation of any provision of this Code. 

(b) No member of this Division shall use or substitute any material, 
superior or inferior in quality, to that specified by the purcliaser, or use or 
substitute any material or method of manufacture not in accord with any 
applicable law, rule or regulation of any governmental authority. 

(c) No member of this Division shall give, permit to be given, or indirectly 
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 tlie knowledge of such ejnployer, 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 u.sed for commercial bribery as hereinabove 
defined. 

(d) No member of this Division sliall cancel in whole or in Tpart or permit 
the cancellation in whole or in part of any contract of sale, except for a fair 
consideration, or pay or allow to any purchaser in connection with any sale, 
any rebate, commission, credit, discount, adjustment or similar concession 
other than as is permitted by the Co<le. 

(e) No member of this Division shall disseminate, publish or circulate 
any false or misleading information relative to any product or price for any 
product of any manufacturer or the credit standing or ability of any manu- 
facturer thei'eof to perform any work or manufacture or produce any product, 
or to tiie conditions of employment among the employees of any manufacturer 
thereof. 

(f) No member of this Division shall aid or abet any manufacturer in any 
unfair practice. 

(g) The violation of any provision of this Code shall be deemed an unfair 
method of competition. 

13. Exports. — (a) No provision of this Code, relating to prices or terms of 
.selling, shipping or marketing, shall apply to export trade or sales or sliipi- 
ments for export trade, but nothing in this Section shall be construed to include 
trade between the United Stales and its teiritories or possessions, within tlie 
meaning of the term " export trade ". 



SCHEDULE "B" 

Division for Manufacturers of Binder Twinh 
filing price schedules 

1. Every member of this Division offering Binder Twine for sale shall file 
with the Code Authority a schedule of prices and terms setting forth the grades 
and lengths per pound, prices per pound, or the prices per bale of fifty (50) lbs. 
gross weight, quantity discounts, terms and date of payinent, date and amount 
of cash discount, and conditions of delivery; each such scliedule shall set forth 
only one price of such member for each length of twine covered therein and 
the only lengths therein shall be, approximately five hundred (500) feet, five 
hundred fifty (550) feet, six hundred (600) feet and six hundred fifty (650) 
feet to the pound. Such schedules shall represent the basis upon which Binder 
Twine is to be sold by members when selling to retail dealers. Such schedule 
shall also set forth full information as to all discounts allowed to purchasers. 
Such schedule, wlien filed with the Code Authority, shall become effective on 
the date filed and shall remain In force until a new schedule is filed and becomes 
effective. 

2. Copies of all schedules filed by manufacturers shall be open to examina- 
tion, as the Administrator may determine, to parties in interest. 

3. The Code Authority, at such time and after such study as it may deem 
proper, shall recommend to the Administrator the establishment of a definite 
quantity (biiles) of binder twine, the purchase of which for a season's re- 
quirement shall entitle the purchaser to a discount, from any individual man- 
ufacturer, equal to the discount allowed by said manufacturer to jobbers. The 
Administrator ma.y approve, disapprove or modify the recommendations. Pend- 
ing such determination, each member shall file such discounts as he desires 
to make applicable to any purchaser. 

4. No manufacturer shall sell, or offer to sell, Binder Twine, directly or in- 
directly, upon any other conditions than specified in his schedule as filed, or 
as may be established under the provisions of Section 3 hereof, and no manu- 
facturer shall modify the conditions of sale by any concessions, either di- 
rectly or indirectly, made subsequent to any sale. 

(271) 

o 



Approved Code No. 304 
CODE OF FAIR COMPETITION 

FOR THE 

OUTDOOR ADVERTISING TRADE 

As Approved on February 24, 1934 



ORDER 



Code of Fair Competition for the Outdoor Ad\t:rtising Trade 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Outdoor Advertising 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. 6o43-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 provisiolis of Article VIII, Section 2, insofar as they prescribe 
a waiting period between the filing with the Code Authority (i.e. 
actual receipt by the Code Authority) and the effective date of re- 
vised price lists or revised terms and conditions of sale be and they 
are hereby staj^ed pending my further order. 

Hugh S. Johnson, 
Adjninistrcutor for Industrial Recovery. 

Approval recommended : 
A. D. Whiteside, 

Div is io n A dmin istrator. 

Washington, D.C, 

Fehruwy £4, 193 1^. 

42208° 376-128 34 (273) 



EEPOKT 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 
Outdoor Advertising Trade, as proposed by a group representative 
of that trade. The public hearing was conducted in Washington 
on December 8, 1933. Every person who requested an appearance 
was freely heard in accordance with statutory and regulatory 
requirements. 

There are estimated to be 1300 firms in this trade. The group 
proposing the Code endeavored to get in touch with all known 
members and it is certain that better than 80% of the business 
was directly represented. 

ECONOMIC AND STATISTICAL MATERIAL 

Outdoor Advertising breaks down into 17,500 units or " plants ", 
each comprised of a group of bill-boards within a given area, which 
in 1928 produced a business of $65,000,000 and gave employment to 
16,000 persons. In 1933, the volume of business had dwindled to 
$25,000,000 and employment stood at 10,000, declines of about 60% 
and 40% respectively. Being strictly a service business, Outdoor 
Advertising is dependent upon general conditions and has little 
recreative power within itself. 

RESUME OF CODE PROVISIONS 

The Code establishes a 40 hour week for all emplovees except 
those engaged in outside work in communities of less than 25,000 
population where allowance is made for additional time occasioned 
by tlie distances between locations. It is estimated that over 85% 
of all employees will be on a 40 hour week and that employment in 
the trade will increase by 15% on the basis of the same volume of 
business as was available in 1933. 

Insofar as rates of pay are concerned, differentiation is made be- 
tween workers inside and outside the employer's shop, with special 
consideration to both the size of the community and the South. A 
majority of workers will be on a 40 cent minimum rate. The lowest 
rate j)o.ssible will be 30 cents for outside workers in small commu- 
nities in the South. These provisions will result in payroll increases 
averaging Ijetter than 10%. The minimums apply to a very limited 
number of employees (not over 15%) as practically all employees 
fall in skilled classifications or trades where wages are at relatively 
high levels, and are adequately protected by the terms of the Code. 

(274) 



275 

The unfair trade practice j^rovihiions are elaborate in order to pre- 
serve all of the competitive elements. As in the case of other adver- 
tising media, such as magazines, >it is important that rates be deter- 
mined in advance. This is especially important in Outdoor Adver- 
tising because an advertiser often wishes a national display which 
necessarily involves '" plants " owned by a multitude of individual 
concerns, some of which may be in direct competition. 

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 floAv of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the pui'pose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of producton (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Trade normally employs not more than 50,000 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 group 
is truly representative of the aforesaid Trade; and that said group 
imposes no inequitable restrictions on admission to membership 
therein. 

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

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

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

For these reasons, the Code has been approved. 

Hugh S. Johnson, 

A diiiin is t rat or. 
February 24, 1934. 



CODE OF FAIR COMPETITION FOR THE OUTDOOR 
ADVERTISING TRADE 

Article I — Purpose 

To effectuate the jDolicies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Outdoor Advertising Trade, and shall be 
the standard of fair competition for such Trade and shall be binding 
upon every member thereof. 

Article II — Definitions 

The term " Outdoor Advertising Trade " as used herein includes 
the service for others of selling and/or erecting and/or placing 
and/or maintaining outdoor advertising displays on premises owned, 
leased or controlled by a member, and such related branches or sub- 
divisions 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 Trade in any capacity receiving compensation for his services, 
irrespective of the nature or method of payment of such compensa- 
tion, except a. member of the Trade. 

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

The term " member of the Trade " includes anyone engaged in the 
Trade as above defined, either as an employer or on his own behalf. 

The term " trade area " as used herein means any area designated 
as a trade area by the Code Authority in accordance with the pro- 
visions of this Code. 

The term "President", "Act", "Administrator", and "Code 
Authority ", as used herein shall mean respectively the President of 
the United States, Title I of the National Industrial Recovery Act, 
the Administrator for Industrial Recovery, and the agency herein 
created to administer this Code for the Trade. 

Population for the purposes of this Code shall be determined by 
the latest Federal Census. 

Article III — Hours 

1. No employee engaged outside of the shop of the employer but 
within the corporate limits of the city in which the shop is located 
shall be permitted to work more than forty (40) hours in any one 
week except as provided in the following two subsections : 

(1) No employee engaged outside of the shop of an employer 
located in a city or town of 25,000 population or less but greater 
than 2,500 population shall be jiermitted to work in excess of forty- 
four (44) hours in any one week. 

(27G) 



277 

(2) Xo employee engaged outside of the shop of an employer 
located in rural communities of 2,500 or less shall be permitted to 
Avork in excess of forty-eight (48) hours in any one \vt«K. 

2. No watchman shall be permitted to work in excess of fifty-six 
(56) hours per week averaged over any consecutive two (2) week 
period. 

3. No other emplo3'ee, except as set forth in Sections 1 and 2 of 
this Article, outside salesman, outside leaseman, traveling auditors 
and employees engaged in a managerial or executive capacity re- 
ceiving Thirty-five ($35.00) Dollars a week or more, shall be per- 
mitted to work in excess of forty (40) hours in any one week or 
eight (8) hours in any twenty-four (24) hours period. 

4. The maximum houi's fixed in the foregoing sections shall not 
apply to any employee on emergency maintenance or emergency 
repair work involving breakdowns or protection of life or property, 
but in any such special case at least time and one-third shall be paid 
for hours worked in excess of the maximum hours herein provided. 

5. No employee shall be permitted to work more than six (6) 
days in any seven (7) day period. 

Article IV — Wages 

1. No employee in the Trade shall be paid less than Fifteen 
($15.00) Dollars per week in cities of 500.000 population or more 
and in the trade areas of such cities; Fourteen Dollars and Fifty 
Cents ($14.50) per week in cities between 250,000 and 500,000 popu- 
lation and in the trade areas of such cities; Fourteen ($14.00) Dol- 
lars per week in cities between 50,000 and 250,000 population and in 
the trade areas of such cities; Thirteen ($13.00) Dollars per week 
in cities or places of less than 50,000 population and in the trade 
areas of such cities or places, except^ — 

(a) Employees engaged outside of the shop of the employer, shall 
be paid not less than 40(i per hour in cities of 25,000 population or 
more, and not less than 350 per hour in cities or places of less than 
25,000 population, provided, however, that in the States of Virginia, 
North Carolina, South Carolina, Florida, Georgia, Mississippi, Ten- 
nessee, Texas, Alabama, Arkansas, West Virginia, Oklahoma, New 
Mexico, Kentucky, and Louisiana, the minimum rate shall be 50 
less per hour, than the hourly rates herein established. 

(b) Apprentices shall be paid not less than 80% of the minimum 
rate, provided, however, that no employee shall be classed as an ap- 
prentice who has worked for any employer in the Trade a total of 
25 weeks or more and provided further, that the number of ap- 
prentices thus classified and paid belovf the minimum shall not ex- 
ceed 5% of the total number of employees of any employer, except 
that one apprentice may be employed by any emploj^er. 

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

3. No employee whose full time weekly hours for the four weeks 
ended June 17, 1933, are reduced by the provisions of this Code by 
20% or less shall have his or her full time weekly earnings reduced. 
No employee whose full time weekly hours are reduced by the pro- 



278 

visions of this Code in excess of 20% shall have his or her said earn- 
ings reduced by more than 50% of the amount calculated by multi- 
plying the reduction in hours in excess of 20% by the hourly rate. 
4. Female employees performing substantially the same work as 
male employees shall receive the same rates of pay as male employees. 

Article V — General Labor Provisions 

1. No person under 16 years of age shall be employed in the 
Trade, or 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 90 days after the 
effective date, a list of such operations or occupations. In any State, 
an employer shall be deemed to have complied with this provision 
if he shall have on file a certificate or permit duly issued by the 
authority in such State empowered to issue employment or age 
certificates or permits, showing that the employee is of the required 
age. 

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

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

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

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

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees or engage in any other .subterfuge so 
as to defeat the purposes of the Act or of this dode. 

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

8. No emph>yeo.s shall be dismissed by reason of making an honest 
complaint or giving truthful evidence with respect to an alleged 
violation of tliis Code. 

Article VI — Administration 

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

organization and powers of code authority 

1. Tlie Code Authority shall consist of nine individuals, or such 
other number as may be approved from time to time by the Admin- 



279 

istrator, to be selected as hereinafter set forth, and of such additional 
members without vote as the Administrator, in his discretion, may 
appoint to represent such groups or Governmental agencies as he 
may designate. The Trade representatives on the Code Authority 
shall consist of nine members of the Trade, provided that not more 
than six of the nine members shall be members of the Outdoor 
Advertising Association of America, Inc. 

(a) Each member of the Code Authority may appoint an alter- 
nate to represent him in his absence and such alternate shall have 
full power to vote. No alternate shall, however, be affiliated with 
any member of the Trade already represented on the Code Authority. 

2. The Code committee of the Outdoor Advertising Trade shall 
arrange, subject to the approval of the Administrator, for the nomi- 
nation and election of the members of the Code Authority within 
ninety (90) days from the effective date of this Code. Each member 
of the Trade qualifying as provided in Section 15 of this Article 
may cast one vote for each of the nine members of the Code Author- 
ity. Members of the Code Authority shall be elected to serve for 
one (1) year or until their successors are elected. Until the Code 
Authority is elected the Code Committee shall serve as the Code 
Authority; provided that in no event shall it serve beyond ninety 
days from the effective date of the Code. If the Code Authority 
shall not be elected within such period, the Administrator shall 
appoint a temporary Code Authority of nine members of the Trade 
to serve until the election of the Code Authority by the Trade. 

3. Each trade or industrial association, directly or indirectly par- 
ticipating in the selection or activities oi the Code Authority, shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its Articles of Association, 
By-Laws, regulations and any amendments when made thereto, to- 
gether with such other information as to membership, organization 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

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

5. Nothing contained in this Code shall constitute the members 
of the Code Authority partners for any purpose. Nor shall any 
member of the Code Authority be liable in any manner to anyone 
for any act of any other member, officer, agent, or employee of the 
Code Authority. Nor shall any member of the Code Authority be 
liable to anyone for any action or omission to act under the Code 
except for his own willful misfeasance or non-feasance. 

6. The Code Authority shall adopt by-laws and rules and regula- 
tions for the procedure and for the administration and enforcement 
of the Code, in accordance with the powers herein granted, and sub- 
mit the same to the Administrator for his approval together with 
true copies of any amendments or additions when made thereto, 
minutes of meetings when held, and such information as to its activi- 



280 

ties as the Administrator may deem necessary to effectuate the pur- 
poses of the Act. 

7. The Code Authority may receive complaints of violations of this 
Code, make investigations, reports and recommendations thereof to 
the Administrator. 

8. The Code Authority may utilize the facilities of and cooperate 
with any and all trade and labor associations or organizations, na- 
tional, regional, or local, in the Outdoor Advertising Trade in such 
manner as it deems most useful to its work within the limitations of 
Article V, Sections 2, 3, and 4, and Article VI, Section 3 of this 
Code. 

9. The Code Authority may coordinate the administration of this 
Code with such other Codes, if any, as may be related to the Trade, 
or any subdivision thereof and may assist in promoting joint action 
upon matters of common interest by establishing a joint Advisory 
Board to which one or more of its members shall be delegated. 

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

11. The Code Authority shall investigate the question of " over- 
runs ", or the permitting of an outdoor advertising display to remain 
a longer period of time than is actually provided by the advertisers 
contract. The Code Authority shall make recommendations within 
90 days after the effective date of this Code to the Administrator 
for the regulation of such practice based on such investigation and 
study. 

12. The Code Authority shall obtain from members of the Trade, 
as soon as the necessary readjustments within the Trade can be made, 
reports based on periods of one, two, or four weeks, or one month, 
or multiples thereof, for use of the Code Authority and the Admin- 
istrator in the administration and enforcement of the Code, and for 
the information of the President, and to give assistance to members 
of the Trade in improving methods, or in prescribing a uniform 
system of accounting and reporting. 

13. The Code Authority shall define and determine the trade areas 
.'specified in Article IV without regard to City, County, State, or 
sectional lines. 

14. The Code Authority shall cause to be fornudated an account- 
ing system and methods of cost finding and/or estimating capable of 
use by all members of the industry. After such system and methods 
have been formulated, full details concerning them shall be made 
available to all members. Thereafter all members shall determine 
and/or estimate costs in accordance with tlie principles of such 
nietliods. 

15. Members of the I'rade shall be entitled to participate in aud 
.share the benefits of the activities of the Code Authority, to })artici- 
pate in the .selection of the members thereof, and to use the N.R.A. 
Insignia, by assenting to and complying with the requirements of 
this Code and sustaining their reasonable share of the expense of 
])reparation, presentation, and administration of this Code. The 
reasonable shai'c of such expense shall be determined by the Code 
Authority, subject to review by the Administrator, on the basis of 



281 

volume of busine!5s and/or such other factors as may be deemed 
equitable to be taken into consideration. 

16. 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 dis- 
approve after thirty (30) days' notice to him of intention to proceed 
with such action in its original or modified form. 

17. In addition to information required to be submitted to any 
Code Authority, all or any of the persons subject to such Code, 
agreement or license shall furnish such statistical information as 
the Administrator may deem necessary for the purposes recited in 
Section 3 (a) of said Act to such Federal and State agencies as the 
Administrator may designate ; nor shall anything in any Code, agree- 
ment, or license relieve any person of any existing obligation to 
furnish reports to Government agencies. 

Article VII — Trade Practices 

1. No member of the Trade shall publish advertising (whether 
jDrinted, radio, display, or of any other nature) as to his own business 
which is misleading or inaccurate in any material particular, nor 
shall any member in any way misrepresent any credit terms, values, 
policies, services, or the nature or form of the business conducted. 

2. No member of the Trade shall knowingly withhold from or 
insert in any quotation or invoices any statement that makes it 
inaccurate in any material particular. 

3. No member of the Trade shall publish advertising as to his 
own business which refers inaccurately in any material particular 
to any competitors or their prices, values, credit terms, policies, or 
services. 

4. No member of the Trade shall sell any service at a price below 
cost. However, any member may meet the price competition of 
anyone whose costs under this Code provision are lower. 

5. No member of the Trade shall publish or circulate unjustified 
or unwarranted threats of legal proceedings which tend to or have 
the effect of harassing competitors or intimidating their customers. 

6. No member of the Trade shall secretly offer or make any 
payment or allowance of a rebate, refund, commission, credit, un- 
earned discount, excess allowance, whether in the form of money or 
otherwise, nor shall a member of the Trade secretly offer or extend 
to any customer any special service or privilege not extended to all 
customers of the same class, for the purpose of influencing a sale. 

7. No member of the Trade shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influenc- 
ing or rewarding the 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- 
oiit the loiowledge 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 



282 

except so far as such articles are actually used for commercial bribery 
as hereinabove defined. 

8. No member of the Trade shall induce or attempt to induce the 
breach of an existing contract between a competitor and his customer 
or source of supply; nor shall any such member interfere with or 
obstruct the performance of such contractual duties or services, 

9. No member of the Trade shall require that the purchase of any 
service or lease of any space be a prerequisite to the purchase or lease 
of any other service or space. 

10. No member of the Trade shall join or participate with other 
members of the Trade who with such member constitute a substan- 
tial number of members of the Trade or who together control a sub- 
stantial per cent of the business in the Trade, in any transaction 
known in law" as a black list, including any practice or device which 
accomplishes the purpose of a black list. 

Article VIII — Open Price Agreement 

1. The Code Authority shall prepare and complete as soon as 
possible, subject to the approval of the Administrator, a basic classi- 
fication of the services of the Trade together with a schedule of items 
or services for which additions to or deductions from the base prices 
may be made. This classification may be amended from time to time 
by the Code Authority. 

2. This classification of services shall be made available by the 
Code Authority to every member of the Trade as well as to pur- 
chasers of such services. Within 30 days thereafter each member of 
the Trade shall file with the Code Authorit}^, or otherwise as it may 
require, a list showing the base prices for all services, which list 
shall be available for the benefit of buyers as well as sellers. Any 
subsequent change in a price list shall be filed as provided herein to 
become effective not earlier than 30 days from the date of filing, 
except that the first prict list so filed shall become effective im- 
mediately.^ 

3. No member of the Trade shall quote prices or terms, contract 
for the sale of or sell any service except upon such current prices 
and terms as he shall have established by filing with the Code 
Authority as hereinabove provided. Provided, however, that bona 
fide quotations made to advertisers or their representatives shall 
be firm if covered by contract placed with member of the Trade 
within 90 days from date of making such quotations subject to prior 
sale. i 

Article IX — Modification j 

1. This Code and all the provisions thereof are expressly made 
subject to the riglit of the Pi'esident, in accordance with the provi- 
sions of subsection (b) of Section 10 of the National Industrial Ke- 
covcry Act, from time to time to cancel or modify any order, ap- 
l)roval, license, rule, or regulation issued under Title I of said Act 
and specifically, but without limitation, to the right of the President 
to cancel or modify his approval of this Code or any conditions im- 
posed by him upon his approval thereof. 

^ See paragraph 2 of order approving this Code. 



283 

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 X — 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 XI — Price Increases 

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

ARTiciiE XII — Effective Date 

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



Approved Code No. 304. 
Registry No. 1702-2,3. 



o 



Approved Code No. 305 
CODE OF FAIR COMPETITION 

FOR THE 

FIBRE CAN AND TUBE INDUSTRY 
As Approved on February 24, 1934 



ORDER 



Approving Code of Fair Competition for the Fibre Can and 

Tube 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 Fibre Can and Tube 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 Recover}', 
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 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 effective date of revised price lists or revised terms and condi- 
tions 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 : 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

Fehma?y ^4, 193/f. 

42207° 376-129 34 (285) 



KEPORT 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 Fibre Can and Tube Industry, conducted in Washington 
on December 2, 1933, in accordance with the provisions of Title I 
of the National Industrial Recovery Act. 

HOURS AND WAGES 

The Code ])rovides a standard 40 hour week for factory workers. 
Members of the Industry may adopt a standard work day for factory 
employees of either eight or ten hours; overtime to be paid for all 
hours worked in excess of forty hours per week. The usual excep- 
tions are made in regard to non-productive employees. Office em- 
plo3'ees are limited to an average of 40 hours per Aveek over an eight 
week period. 

The minimum wage rate in the North for hourly paid employees 
is 32i/>^ per hour. In the South the minimum wage rate for hourly 
paid employees is 30^ per hour. 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 piice 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 
statistical data as he may require. 

ECONOMIC EFFECT OF THE CODE 

The Industry emj)loyed in 1929 api^roximately 3,200 persons and 
2,900 i)ersons in 1933. The effect of the Code will be to emjdoy be- 
tween 550 and 600 additional workers. 

The increase in tlie total payrolls of the Industry as a result of 
the Code will be about 15%. 

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 tliis matter 

I find that: 

(a) Said Code is well d<'sigin'<l to prouiote the policies and pur- 
poses of Title I of tlie National Industrial Recovery Act, including 

(2«0) 



287 

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 sanction 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 restrictions 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 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 perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section T, and Sub- 
section (b) of Section 10 thereof; and that the applicant Association 
is an industrial Association truly representative of the aforesaid In- 
dustry; and that said Association imposes no inequitable restrictions 
on admission to membership therein. 

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

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

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

For these reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A d^iiinistratar. 
February 24. 1934. 



CODE OF FAIR COMPETITION FOR THE FIBRE CAN 
AND TUBE 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 — Defixitions 

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

" Industry " — The business of manufacturing cans of various 
ghapes from paper, fibre and/or similar materials ; cans consisting of 
a combination of metal, fibre, paper and/or similar materials and 
tubes, cores, spools and reels for a multiplicity of purposes made of 
these same materials, whether such cans, tubes, cores, spools and reels 
are for use and consumption by maker, or are for sale, or are used in 
connection with and incidental to the major and prime business of 
maker. 

" Member " — A natural person, partnership^ corporation, associa- 
tion, trust, trustee, trustee in bankruptcy, receiver, or other form of 
enterprise, 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 Administkation 

Section 1. There shall forthwith be constituted a Code Authority 
of the Fibre Can and Tube Industry which shall comprise six (6) 
members of the Industry. Five (5) of such members shall be elected 
by the Board of Directors of the National Fibre Can and Tube Asso- 
ciation. The five (5) members so elected shall elect a sixth mem- 
ber from among the members of the Industry. At least two of the 
six members so ele(;ted to the Code Authority shall be engaged in 
the manufacture of tubes and cones for winding textile yarns. In 
addition to the six (C) members so elected the Administrator may 
designate from one to three persons to serve on the Code Authority 
■uithout vote and without compensation from the Industry. 

Section 2. Tlie Association shall impose no inequitable restric- 
tions on membership and shall file with the Administratoi- cei-tified 
copies of any amendmouts of its By-Laws relating to eligibility or 
admission to membership in the Association, or relating to the 
method of selection of the members of the Boai'd of Directors which 
the Association may hereafter ado])t. 

Section 3. In order that the Code Authority shall at all times 
be trul}' representative of the Industry, the Administrator may 

(288) 



289 

prescribe such hearings as he may deem proper, and thereafter if 
he shall find the Code Authority is not truly representative of the 
Industr}'-, he may require an appropriate modification of the method 
of selection of the Code Authority. 

Sectiox 4. The Code Authority is charged generally with the duty 
of administering this Code. It 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. If the 
Administrator shall determine that any action of the Code Authority, 
or anj^ 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 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 (30) days notice to him of intention to proceed with such 
action in its original or modified form. 

Section 5. The expense of administering this Code shall be borne 
pro rata, in accordance with a formula to be adopted by the Code 
Authority, b}' all members of the Industry who accept the benefit of 
the services of the Code Authority or otherwise assent to this Code. 

Section 6. The Code Authority is hereby constituted the agency 
to endeavor to effect, by arbitral proceedings or otherwise, acljust- 
meiits of contracts entered into by members of the Industry, wdiere 
the costs of executing such contracts are increased through the appli- 
cation of the provisions of the Act or of this Code. 

Section 7. 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 way to an}^ one 
for any act of any other member, officer or agent or employee of the 
Code Authority; nor shall any member of the Code Authority be 
liable to an3^one for any action or omission to act under the Code, 
except for his own wilful misfeasance or non-feasance. 

Article III — Hours of Labor 

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

SCHEDULE OF WORKING HOURS 

(a) Watchmen: Fifty-six (56) hours in any one week. 

(b) Chauffeurs, truckdrivers and their helpers: Nine (9) hours 
in any one day, or forty-five (45) hours in any one week. 

(c) Engineers, firemen, electricians, filter plant employees, electric 
and hydro-electric operators: Nine (9) hours in any one day, or 
forty-two (42) hours in any one week. 

(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 factor}^: Eight (8) hours in any one day 
and forty (40) hours in any one week. Any member may elect to 
adopt a standard work of ten (10) hours by filing notice of such 



290 

election Avith the Code Authority on or before thirty (30) days after 
the effeetiA^e date of this Code, and may not thereafter revert to a 
standard eight (8) hour day for a period of at least one year from 
such date. When any member has elected to adopt the ten (10) 
hour day, all time worked by such of his employees, as are included 
within the meaning of this paragraph, in excess of forty (40) hours 
in any one week, or on the fifth or following day in any calendar 
week shall be paid for as overtime in accordance with the provisions 
of Section 2 of this Article. 

(e) Employees engaged in a managerial or executive capacity, 
foremen and supervisors, receiving $35.00 or more per week, their 
personal secretaries, 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. 

Section 2. The limitations provided in the above schedule may be 
exceeded for any reason at any time provided that all time worked 
in excess of the maximums shall be paid for at the rate of time and 
one-third for all hours above the maximums up to and including 
forty-eight (48) hours per week, and at the rate of time and one-half 
for all hours above forty-eight (48) hours per week. 

Section 3. No employer shall knowingly permit any employee to 
W'Ork for any time, which, when totalled with that already per- 
formed with another employer or employers in this Industry, exceeds 
the maximum number of hours permitted in the schedule set forth in 
this Article. 

Article IV — Wages 

Section 1. The minimum rate of w^age of any employee, other than 
office or clerical employees, employed in any plant, mill or factory, 
or on work connected with or incidental to the operation of such 
plant, mill or factory shall be as follows : 

(a) In the Northern zone, which shall consist of all of the territory 
of the United States except the States named in subdivision (b) 
hereof : 32^/2^ 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: 30^ 
per hour. 

Section 2. The minimum rate of wage of any office or clerical 
emph)yee sliall be as follows: 

(a) In tlie Northern zone, as defined in Section 1 hereof, $15.00 
jH'r week. 

(b) In the Southern zone, as defined in tlie 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 37i4(ii per hour in the 
Nortliern zone, and 35^. per hour in the Southern zone. 

Seciton 3. 'J'his Article establishes a minimum rate of pay which 
shall apply irrespective of whether an employee is actually compen- 
sated on tin)e-rate, piece-work or otiier basis. 

Sec'jton 4. Female employees, performing substantially the same 
work as male employees, shall receive the same rate of pay as male 



291 

employees. The Code Authority shall within ninety (90) days after 
the effective date of this Code file with the Administrator a descrip- 
tion of all occupations in the Industry in which both men and 
women are employed. 

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

Section 6. A person whose earning capacity is limited because of 
age or physical or mental handicap may be employed on light work 
at a wage of not less than 80% of the minimum prescribed by this 
Code, proA'ided the State Authority or other agenc}^ designated by 
the United States Department of Labor shall have issued a certifi- 
cate 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 author- 
ity shall not become effective until sixty da^'s after the effective date 
of this Code. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industry. No person under eighteen (18) years of 
age shall be employed at operations or occupations which are hazard- 
ous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator within 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 tliis 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 employ- 
ment or age certificates or permits, showing that the emplo^^ee is of 
the required age. 

Section 2. Employees shall have the right to organize and bar- 
gain collectivel}^ through representatives of their own choosing, and 
shall be free from the interference, restraint, or coercion of employ- 
ers of labor, or their agents, in the designation of such representa- 
tives or in self-organization or in other concerted activities for the 
purpose of collective bargaining or other mutual aid or protection. 
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 la- 
bor, minimum rates of pay and other conditions of employment, ap- 
proved or prescribed by the President. 

Section 3. 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. 

Seciton 4. No employer shall reclassify employees or duties of 
occupations performed or engage in any other subterfuge for the 



292 

purpose of defeating the purposes or proA'isions of the Act or of this 
Code. 

Section 5. All employers shall post copies of Articles III, IV and 
V of this Code in conspicuous places accessible to emploj^ees. 

Section 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 submitted by the Code Authority to the Administrator within six 
(G) months after the effective date of this Code. 

Section 7. 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 xluthority shall also submit to the Ad- 
ministrator, within six (6) months after the effective date of this 
Code, a plan for the stabilization and regularization of employment. 

Section 8. The manufacture or partial manufacture of any product 
of the Industry in homes shall be prohibited. 

Article VI — Accounting — Selling 

Section 1. The Code Authority shall cause to be formulated an 
accounting system and methods of cost finding and/or estimating 
capable of use by all members of the Industry. After such system 
and methods have been formulated, full details concerning them 
shall be made available to all members. Thereafter all members 
shall determine and/or estimate costs in accordance with the princi- 
ples of such methods. 

Section 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 members of the Industry who manufacture such products 
not less than thirty (30) days prior to the date so fixed. 

Section 3. At least ten days prior to such date, ever}^ su(;h 
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 prices and the most favorable terms. 

Spxtion 4. All such schedules shall be in such form as the Code 
Authority shall prescribe and shall contain all information neces- 
.sary 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. 

Section 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, however, that any member who withdraws a schedule with- 
out substitutinjr a new sciicdule therefor shall be deemed to have 



293 

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 daj^s after the date of 
filing provided, however, that an increased price may become 
effective at such ea4:-lier date as the member filing the same shall fix. 

Section 6. The Code Authority shall promptly supply all mem- 
bers of the Industry who manufacture any particular product with 
copies of all schedules, revised schedules, and notices of withdrawals, 
which pertain to such product. Immediately upon receipt of infor- 
mation 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 he may notify the C(xlo 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. 

Section 7. No such schedule of prices and terms of sale filed by 
any member, or in effect at anj^ 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. 

Section 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 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. 

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

Section 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. 

Section 11. Cost, for the purposes of this Article, shall be deter- 
mined pursuant to the method of cost determination prescribed, as 
provided in Section 1 hereof, as soon as such method is adopted and 
approved, and theretofore pursuant to the method employed by 
such member subject to such preliminary rules as the Code Authority 

1 See paragraph 2 of order approving this Code. 



294 

shall from time to time prescribe with the approval of the Adminis- | 
trator. In computing cost either by the prescribed method herein 
provided for, or prior to the time when such method is put into 
operation, every member shall use the market price of prime mate- 
rials as furnished by the leading mills making these materials. If a 
member manufactures any of the raw or semi-finished materials used 
in making the products of this Industrj^, he shall use the market 
price as described in this Section in computing the cost of materials 
and not his manufacturing cost. 

Section 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 information in regard to any quotation, order, contract, 
or sale of any product of the Industry, including information as to 
specifications, quantities, prices, 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. 

Section 13. Nothing herein contained shall be construed to pre- 
vent 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 on 
such terms and conditions as the Code Authority may approve. 

Section 14. Except in fulfillment of bona fide contracts existing 
on the effective date of this Code, no member shall sell or offer for 
sale any product of the Industry at a price less than a price arrived 
at in accordance with the provisions set forth in this Article. 

Article VII — Reports and Statistics 

Section 1. Each member shall prepare and file with an impar- 
tial agent or agents, designated by the Code Authority at .such times 
and in such manner as it ma}^ prescribe, such statistics, data and 
information relating to plant capacity, volume of production, vol- 
ume of sales in units and dollars, orders received, unfilled orders, 
stock on hand, inventory both raw and finished, number of employ- 
ees, wage rates, emploj^ec 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 exami- 
nation of the books, accounts and records of such member by any 
disinterested accountant or accountants or other (pialified person or 
persons designated by the Code Authority. 

Section 2. Except as otherwise ])rovided in the Act, or in this 
Code, all statistics, data and infoi-mation filed or required in ac- , 
cordance with the provisions of this Code shall be confidential and j 
the statistics, data and information of one member shall not be re- 
vealed to another member. No such data or information shall be 
publislied except in combination with other similar data and in 
such manner as to avoid tlie disclosure of confidential information. 
The Code Autliority shall arrange in such manner as it may deter- 
mine for tlie current publication of Lidustry statistics to members. 

Section ?>. The Code Authority shall make such reports to the 
Administrator as he may from time to time require. 



295 

Section 4. In addition to information required to be submitted to 
the Code Authority there shall be furnished to Government Agencies 
such statistical information as the Administrator may deem neces" 
sary for the purposes recited in Section 3 (a) of the Act. Nothing 
contained in this Code shall relieve any member of any existing 
obligations to furnish reports to any Government Agency. 

Article VIII — Monopolies 

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

Article IX — Becommendations 

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- 
tices for the Industry and for the modification of its Trade Customs, 
and the enforcement thereof. 

(b) For the establishment of plans to equalize production Avith 
demand, so that the interests of the Industr}' and the public nuiy 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 
emplo3'ment. 

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

Section 2. For the purpose of assisting the Code Authorities of 
the Paper Manufacturing and/or Converting Industries in the ad- 
justment 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 Inilustries 
and shall report its recommendations to the Administrator. 

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

Article X — General Trade Practices 

Section 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- 
gard 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 com- 
petitor's goods, credit or ability to perform his contract. 



296 

(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 re- 
lation 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. The foregoing provisions shall not be 
construed to prohibit free and general distribution of articles com- 
monly used for advertising except so far as such articles are actually 
used for commercial bribery as 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) To make payment or refunds at any time, directly or indi- 
rectly, or to allow privileges not extended to all purchasers under like 
terms and conditions excepting, however, such differentials or differ- 
ences between purchasers as are permitted by the terms of Section 2 
of the Clayton Act, shall be considered Unfair Trade Practices. 

(h) No member of the Industry shall withhold from or insert in 
his billing, statements resulting in the invoice being a false record, 
wholly or in part of the transaction represented on the face thereof. 

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 onlj'- that part 
of his business which is included in this Industry. 

Section 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. 

Section 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 
Administrator, be modified and eliminated as changes in circum- 
stances or experience may indicate. 

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

Section 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. 



Ai)proved Code No. 305. 
Registry No. 311-03. 



O 



Approved Code No. 306 
CODE OF FAIR COMPETITION 

FOR THE 

MICA INDUSTRY 

As Approved on February 24, 1934 



OEDER 



Approving Code of Fair Competition for the Mica 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 Mica 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 

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 number 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, excepting however, those provisions which 
include within the scope of this Code the importation of Mica and 
Mica products and the sale thereof by the importer, be and it is 
hereby approved ; provided, however, that those engaged in the 
importation of Mica and Mica products and the sale thereof may, 
after application by a truly representative group and after such 
further investigation and notice as I may deem necessaiy, be in- 
cluded within the scope of this Code, and provided further, that the 
provisions of Article A^III, Sections 3 and 6, insofar as they pre- 
scribe 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 associa- 
tions now being conducted by the National Recovery Administration. 

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval recommended : 
W. A. Harriman, 

Divisio^i Administrator. 

Washington, D.C, 

Fehruary 2It, 1934. 

42206' 376-130 34 (297) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Mica Industry, a hearing on which was conducted in Washington 
on the seventeenth of November. 1933, in accordance with the provi- 
sions of the National Industrial Recovery Act. 

HOURS 

The Code provides for a maximum work day of 8 hours and a max- 
imum work week of 40 hours, except that for six weeks in any six 
month period employees may be permitted to work 48 hours each 
week. The f oUow^ing are excepted : 

(a) Executives and managers, who earn not less than $35.00 per 
week, and outside salesmen ; 

(b) Employees on emergency maintenance and emergency repair 
work, who may work not more than 48 hours in one week ; 

(c) Engineers, firemen and cleaners who may work not more than 
66 hours per week during any six weeks in any six month period, 
and who may otherwise work not more than 48 hours in one week; 

(d) Watchmen, who may work not more than 54 hours in any one 
week. 

All emi)loyees are limited to six days Avorlv in any seven day period. 

WAGES 

The Code provides foi- minimum rates of pay of 25 cents per hour 
in the South and 30 cents per hour in the North ; of 27^/2 cents per 
hour in the South and 32^/2 cents per hour in the North in grinding 
operations in the Dry Ground Mica Division ; and of 30 cents per 
hour in the South and 35 cents per hour in the North, in the Import- 
ing Division, and in grinding operations in the Wet Ground Mica 
Division. 

Until 6 months after the effective date of the Code, learners, with- 
out previous exj/crience in the Industry, may be paid 80% of the 
above minimum wages. No person may be classed as a learner for 
longer than 12 weeks and the total number of such learners shall not 
exceed 10% of the total number of employees. 

Aged or physically handicapped persons may be employed at such 
wages and for sucli hours as shall be stated in a certificate issued by 
a State Authority designated by the United States Department of 
Labor. 

CIIII.D LABOR 

The employment of persons under 16 years of age and, in occupa- 
tions hazardous in nature or dangerous to health, of persons under 
18 years of age is prohibited, 

(298) 



299 

ECX)NOMIC EFFECTS OF THE CODE 

This Code has been presented by five groups, representing the 
following distinct branches of the Industry : Sheet Mica, Dry Ground 
Mica, White Wet Ground JNIica, Mica Mining and Mica Importing. 
These groups constitute the entire ISIica Industry in the United States 
except for the Plate Mica Group, which is now operating under the 
Code for the Electrical Manufacturing Industry. The bringing 
together of these groups under one Code should tend to unify and 
strengthen the Industry, 

On the basis of value, only about 30% of the Mica used in this 
country is domestic, the remainder being imported. The annual 
domestic production, in tons, has remained fairly constant since 
1929, but the value of this production has declined approximately 
70% during this period. The number of wage earners in the indus- 
try has decreased only about 10% since 1928. 

Because of the lack of data concerning some of the groups, it is 
difficult to estimate accurately the increases in employment and pur- 
chasing power which will result from the Code. From the available 
data, it appears that the Code will increase employment at least 20% 
and wages at least 30%, assuming that the volume of domestic pro- 
duction does not decline. 

In the South, wages are now being paid as low as 7^2 cents per 
hour in the Sheet Mica Group and 10 cents per hour in the Mica 
Mining Group, as compared to the minimum of 25 cents per hour 
prescribed in the Code for this section. The prevailing maximum 
weekly hours for all groups range from 50 to 60, as compared to the 
40 to 48 hours permitted under the Code. 

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, includ- 
ing removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanctions and supervision, 
by eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of indus- 
tries, by avoiding undue restriction of production (except as may 
be temporarily required), by increasing the consumption of indus- 
trial and agricultural products through increasing purchasing power, 
by 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- 



300 

tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant groups 
are industrial groups truly representative of the aforesaid industry, 
excepting however, the importation of mica and mica products and 
the sale thereof by the importer; and that said groups impose no 
inequitable restrictions on admission to membership therein. 

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

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

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

For these reasons, therefore, I have approved this Code, excepting 
however, those provisions which include within the scope of this 
Code the importation of mica and mica products and the sale thereof 
by the importer; provided, however, that those engaged in the im- 
portation of mica and mica products and the sale thereof may, 
after such further investigation and notice as I may deem necessary, 
be included within the scope of this Code. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
February 24, 1934. 



CODE OF FAIR COMPETITION FOR THE MICA 
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 Mica Industry, and shall be binding 
upon every member thereof. 

Article II — Definitions ^ 

The term " Mica Industry " as used herein includes the mining, 
importing, grinding, manufacturing, and fabricating — together 
with the distributing and sale by those engaged in the foregoing ac- 
tivities, — of mica including muscovite, biotite, phlogopite, and all 
other forms of mica and products made exclusively or largely there- 
from, except those products in which a binder is used in conjunction 
with mica splittings. 

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

The term " employer " as used herein includes anyone for whose 
benefit such employee is so engaged. 

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

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

The term " Industry" as used herein as defined to mean the Mica 
Industry as described above. 

The terms "Act " and "Administrator " as used herein mean re- 
spectively Title I of the National Industrial Recovery Act and the 
Administrator for Industrial Recovery. 

" Effective Date " as used herein means the second Monday after 
this Code shall have been approved by the President of the United 
States. 

The Mica Industry includes the following Divisions : 

1. The " Mining Division " which consists of members of the In- 
dustry engaged in the mining of mica and its classification and sale 
by the miner as run-of-mine mica ; 

2. The " Importing Division " which consists of members of the 
Industry engaged in the importation of mica and mica products for 
sale or resale; 

3. The " Sheet Mica Division " which consists of members of the 
Industry engaged in the manufacture and fabrication of raw sheet 
mica : 



^ See paragraph 2 of order approving this Code. 

(301) 



302 

4. The " Ts'et Ground INIica Division " which consists of members 
of the Industry engaged in the wet grinding or processing of all 
kinds and types of mica as hereinabove defined; 

5. The " Dry Ground Mica Division " which consists of members 
of the Industiy engaged in the dry grinding or processing of all 
kinds and type,s of mica as hereinabove defined including: 

(a) "dry ground mica produced by the grinding of shop or scrap 
mica; 

(b) dry ground mica schist; 

(c) unground mica screenings from clay washings; 

G. Such other divisions as may hereafter be established as herein- 
after provided, provided however that any division now or here- 
after established may be exempted from the provisions of this Code 
by the President after such notice and hearing as he may prescribe. 

Article III — Hours 

1. Except as hereinafter otherwise provided no employee shall be 
permitted to work in excess of 40 hours in any one week nor in excess 
of 8 hours in any 24-hour period, provided, however, that for six 
weeks in any six months period an employee may be permitted to 
work 48 hours in any one week. 

2. The maximum hours fixed in the foregoing section shall not 
applv to outside salesmen, executives (acting in a supervisory ca- 
pacity) or persons employed in a managerial capacity who earn not 
less than $35.00 per week, or to employees engaged in emergency 
maintenance or emergency repair work, provided that the latter 
group are not permitted to work more than 48 hours in any one week. 

3. The maximum hours fixed in the foregoing section (1) shall 
not apply to engineers, firemen and cleaners, provided, however, that 
no such empIo3'ee may be permitted to work more than a maximum 
of 48 hours during any one week, except that during any six weeks 
of any six month period the maximum shall not be more than 

. 56 hours. 

4. The maximum hours fixed in the foregoing section (1) shall 
not apply to watchmen, provided, however, that no such employee 
may be permitted to work more than a maximum of 54 hours per 
week. 

5. No employer shall knowingly permit any employee to work for 
any time which, when totalled with that already performed with 
another employer or employers in this Industry, exceeds the max- 
imum permitted herein. 

6. No employee shall be permitted to work more than six days in 
any seven day period. 

Article IV — Wages 

1. No employee in this Industry shall be paid at less than the rates 
indicated below for the respective sections of the country and in the 
respective divisions of this Industry. (The Southern Section as 
used in this Article includes the states of Kentucky, Virginia, North 
Carolina, Tennessee, Mississij)i)i, Alabama, Georgia, South Carolina, 
Fl()ii(hi; and the Northern Section as used in this Article includes 
all other states and territories of the United States). 



303 



Southern Section 



Nortliern Section 



Mining Division 

Importing Division 

Sheet Mica Division 

Wet Ground Mica Division 

In grinding operations. . 

In other operations 

Dry Ground Mica Division 

In grinding operations.. 

In other operations 



2cc per hour.-. 
30c per hour... 
25c per hour... 

30c per hour... 
25c per hour... 

2714c per hour 
26c per hour.-. 



30c per hour. 
35c per hour. 
30c per hour. 

3.'c per hour. 
30c per hour. 

3£?'2C per hour. 
30c per hour. 



Provided that, in the Sheet Mica Division onh', learner.s may be 
employed, who may be paid not less than eighty (80% ) percent of 
the minimum wage above prescribed. The total number of such 
learners engaged by any employer shall not exceed ten (10%) per- 
cent of the total number of employees engaged b}' such employer 
at any one time. Xo person shall be employed as a learner for a 
period in exce.ss of twelve (12) w^eks. The provisions of this 
paragraph with respect to learners shall remain in operation for six 
(6) months after the effective date of this Code and thereafter shall 
terminate. For the purpose of this paragraph, learners shall be 
defined as persons who have had no previous employment in the 
mica industry. 

2. A person whose earning capacity is limited because of age or 
physical of mental handicap may be employed on light work at a 
wage below the minimum established by this Code if the emploj'cr 
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. 
Such authority shall be guided by the instructions of the United 
States Department of liabor in issuing certificates to such persons. 
Each employer shall file with the Divisional Code Authority a list 
of all such persons employed by him. 

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

4. No provisions in this Code shall supersede any State or Fed- 
ei-al law which imposes more stringent requirements on employers 
as to age of employees, wages, hours of w^ork, or as to safety, health, 
sanitary or general working conditions or insurance or fire protec- 
tion than are iinpo.sed by this Code. 

5. All employers shall ])ost complete copies of this Code in con- 
spicuous places accessible to employees. 

6. No employee now emplo3ed at a rate in excess of the minimum 
shall be discharged and re-employed at a lower rate for the purpose 
of evading the provisions of this Code. 

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

8. No employer shall re-classify emploj^ees 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. 

42206° 37G-130 34 2 



304 

9. Female employees performing substantially the same work as 
male emploj^ees shall receive the same rate of pay as male employees; 
and where they displace men, they shall receive the same rate of 
eai'nings 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. 

Article V — Child Labor 

No persons under 16 years of age shall be employed in the Indus- 
try and no person under 18 years of age shall be employed at opera- 
tions or occupations wliich are hazardous in nature or dangerous to 
health. The Divisional Code Authorities shall submit to the Admin- 
istrator before six months after effective date a list of such opera- 
tions or occupations. In any State an employer shall be deemed to 
have complied with this provision as to age if he shall have on file a 
certificate or permit duly signed by the Authority in such State 
empowered to issue employment or age certificates or permits show- 
ing that the employee is of the required age. 

Article VI — National Code Altthority 

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

2. The National Code Authority shall consist of the Cliairmen 
of the Divisional Code Authorities hereinafter established. lu addi- 
tion to members as above provided, not more than three members, 
without vote and without expense to the Industry, may be appointed 
by the Administrator to serve for such terms as he may designate: 

(a) No two members or alternates of the National Code Authority 
sliall be affiliated with any single member of the Industry. 

(b) One alternate may be selected from eacli Division to represent 
the chairman of the Division in the Code Authority in his absence, 
provided that no alternate may be affiliated with any member ot 
the Industry already represented on the National Code Authority. 

8. Should a matter come before any Code Authority which spe- 
cifically involves the acts, conduct or interests of a company with 
whicli any member of a (\)de Authoi'ity is affiliated or employed, 
.'>uch ijiejiiber shall be dis(|ualified to act in sucii matter. The; desig- 
nated alternate shall act in such disqualified member's place. 

4. Each trade oi- indnstiial association directly or indirectly ])ar- 
ticipating in the selection or activities of the National Code Au- 
thority or of a Divisioiuil Code Authority shall 

(a) Impose no inequitable restrictions on membership; and 

(b) Submit to the Administrator true copies of its articles of 
association, by-laws, regulations and any amendments made thereto, 
togethei' with such othei' information as to membei'ship, organization 
and activities as (he Adniinistiator may deem necessary to effectuate 
(h(! purposes of the Act. 

o. Jn order that the National Code Authority or any Divisional 
Code Autliority shall at all times be truly representative of the 
Industry or any Division tliercof, and in other resjiects coin])ly with 
the provisions of the Act, the Administrator may prescribe such 



305 

hearings as he may deem proper, and thereafter, if he shall find that 
the National Code Authority or any Divisional Code Authority is 
not truly representative or in any other respect does not comply 
with the provisions of the Act. he may require an appropriate modi- 
fication in the method of selection of any Code Authority. 

6. All members of the Industry may participate in and share the 
benefits of the activities of the National Code Authority and the 
proper Divisional Code Authority, and may participate in the selec- 
tion of the members thereof by assenting to and complying with the 
lerms of this Code. Any such members of the Industry shall pay 
their proportionate share of the cost of maintenance of such Code 
Authority and its activities. Such reasonable share of the expense 
of administration shall be determined by the National Code Au- 
thority subject to review by the Administrator, on the basis of the 
volume of business and/or such other factors as may be deemed 
equitable. 

7. The National Code Authority shall have the following powers 
and duties subject to the right of the Administrator, on revicAv, to 
disapprove any action by ;iny agency pursuant to this Code: 

(a) To insure the execution of the provisions of this Code and 
])rovide for the compliance of the Industr}' with the })rovisions of 
the Act. 

(b) To adopt by-laws and rules and regulations for its procedure 
in the administration and enforcement of the Code. 

(c) To obtain from members of the Industry such iriformation 
and reports as it requires for the administration of the Code, and 
provide for the submission by members of such information and 
reports as the Administi-ator may deem necessary for the purposes 
recited in Section 3 (a) of the Act. Such information and reports 
shall be submitted by members of the Industry to such administra- 
tive and/or Government Agencies as the Administrator may desig- 
nate, provided that nothing in this Code shall relieve any member 
of the Industry of any existing obligations to furnish reports to any 
Government Agency. No such reports or information shall be dis- 
closed to any member of the Industry or to any other party except 
to such Government Agencies as may be directed b}^ the 
Administrator. 

(d) To use such trade associations, supervisory agencies, com- 
mittees, employees and/or others as it deems proper for the carrying 
out of any of its activities provided for herein, and to delegate to 
them such of its powers and duties as it deems necessar}' to facilitate 
the administration of this Code, provided that nothing herein shall 
relieve the National Code Authority of its duties and responsibilities 
under this Code, and that such associations, supervisory agencies, 
committees, employees or others shall at all times be subject to and 
comply with the provisions hereof. 

(e) To study the trade practice provisions incorporated in this 
Code and the operation thereof, and make such recommendations 
as are approved by the various Divisions to the Administrator from 
time to time, which it considers desirable for modification or addi- 
tion to this Code. Upon approval by the President after such hear- 
ings as he may prescribe, such recommendations shall become a part 
of this Code and shall have full force and effect as provisions thereof. 



306 

(f) To establish from time to time, new Divisions of the Indus- 
try, in addition to tlie Divisions herein established. Each Division 
shall have a Divisional Code Authority selected by the members of 
said Division as hereinbelow provided in Article VII. 

(g) To investigate the importation of competitive articles into 
the United States, which endanger the purposes of this Code and to 
act as the agency to make complaint to the President, pursuant 
to the provisions of Section 3 (e), of the Act, on behalf of this 
Industry. 

(h) To delegate any of the above functions or duties to any one 
or all of the Divisional Code Authorities, provided, however, that 
the National Code Authority shall not be relieved of final respon- 
sibility with respect to such delegated functions or duties. 

(i) To coordinate the adminstration of this Code througli the 
several divisions of the Industry. 

(j) To appoint an impartial agency not a member of the Indus- 
try or not employed by a member of the Industry, nor in any way 
affiliated with a member of the Industry. Any and all information 
submitted to the National Code Authority pursuant to this Code 
shall be submitted to such impartial agency and shall be deemed 
confidential and shall not be revealed to any member of the Industry 
except in sumn^ary. 

(k) To review, disapprove or modify any decision, finding, or 
course of action b}^ any Divisional Code Authority. 

(1) To appoint a member of the JNIica Plate Section of the Insula- 
tion Division of the Code of Fair Competition for the Electrical 
Industry, approved by the President on Au^^ust 4, 1933, to serve 
as a liaison member without vote of the National Code Authority 
and the aforesaid Mica Plate Section. 

Article VII — Divisional Code Authorities 

1. A Divisional Code Authority is hereby established in each Divi- 
sion of the Industry to administer the Code within such Division, 
subject to the limitations and procedure herein prescribed. 

(a) The Divisional Code Authority shall consist of three uumu- 
bers to be elected by members of the respective Divisions of the; 
Industry subject to the provisions of Article VI, hereof. 

(b) The Dry Ground Mica Association for the Dry Ground INIicu 
Division, the Wet CJround INIica Association for the ^Vct (i round 
Mica Division, and the Committee on Organization of the Code of 
Fair Competition for the Mica Industry for the remaining Divi- 
sions of the Industry, are hereby designated as the agencies to con- 
duct such elections Avithin ten days after the effective date of this 
Code. 

(c) Members of the Divisional Code Authority shall be elected 
to serve for a term of one year, or until their successors are elected. 
In the event of any vacancy on the membership of any Divisional 
Code Authority, a special meeting of tlie members of such Division 
shall be called to elect a member to fill the unexpired term of such 
vacancy. Notice of eacli election shall be sent to all members of 
the Division at least ten (10) days in advance of any election, and 
voting at such election ma}'^ be by person or proxy or by letter 
ballot. 



307 

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

(e) Each Division may designate one alternate for each member 
of the Divisional Code Authority elected as hereinabove provided. 

(f) Should a matter come before a Divisional Code Authority 
which specifically involves the acts, conduct, or the interests of a 
company with which any member of the Divisional Code Authority 
is associated or employed, such member shall be disqualified to act 
and the designated alternate shall act in such disqualified member's 
place. 

(g) The Divisional Code Authority may use such trade associa- 
tions, supervisory agencies, committees, employees and/'or others as 
it deems proper for the carrying out of any of its activities provided 
for herein, and to delegate to them such of its powers and duties as 
it deems necessary to facilitate the administration of this Code, pro- 
vided that nothing herein shall relieve the Divisional Code Authority 
of its duties and responsibilities under this Code, and that such 
associations, supervisory agencies, committees, employees or others 
shall at all times be subject to and comply with the provisions hereof. 

(h) The Divisional Code Authority ma}^ appoint any impartial 
agency not a member of the Industry or employed by a member of 
the Industry, nor in any way affiliated with a member of the Indus- 
try. Any and all information submitted to any Divisional Code 
Authority pursuant to this Code shall be submitted to such impartial 
agencies and shall be deemed confidential and shall not be revealed 
to any member of the Industry except in summary. 

(i) Members of any Division of the Industry nuiy participate in 
and share the benefits of the activities of their respective Divisional 
Code Authority and may participate in the selection of the members 
thereof by assenting to and complying with the terras of this Code. 
Any such member of any Division of the Industry shall pay his pro- 
portionate share of the cost of maintenance of such Divisional Code 
Authority and its activities. Such reasonable share of the expense 
of administration shall be determined by the Divisional Code Au- 
thority subject to review by the Administrator on the basis of the 
volume of business and/or such other factors as may be deemed 
equitable. 

2. The Divisional Code Authority shall cooperate with the Na- 
tional Code Authority in making investigations of the functioning 
and observance of any provisions of this Code at its own instance, 
at the request of the Administrator, or on complaint of any person 
affected, and report its findings and recommendations to the National 
Code Authority. 

3. The Divisional Code Authority shall study the trade practices 
provisions incorporated in this Code and the operation thereof and 
shall make such recommendation for modification and addition 
thereto to the National Code Authority from time to time which it 
considers desirable for the welfare of its particular Division, Such 
recommendations shall be submitted to the Administrator through 
the National Code Authority, accompanied by its own recommenda- 
tion. Upon approval by the President, after such hearings as he 
may prescribe, such recommendations shall become a part of this 
Code and have full force and effect as provisions of this Code. 



308 

4. The Divisional Code x^iithority shall receive, and to the extent 
permitted by the Act shall adjust complaints in regard to the opera- 
tion of this Code, which involve a member of that Division. 

5. Price lists and terms and conditions of sale, wherever referred to 
in this Code, shall be filed in such form and shall be composed of 
such schedules and items as the respective Divisional Code Authority 
maj' designate. 

Article VIII — Competiti^'e Practices 

1. Each member of the Industry shall use an adequate cost- 
accounting sj^stem which shall be at least as complete and detailed 
as the cost-accounting system recommended by his Divisional Code 
Authority and approved by the Administrator as hereinafter pro- 
vided. The Divisional Code Authority shall recommend for use in 
the Industry a uniform and adequate cost-accounting system which 
shall be adaptable to the cost-accounting procedure and to the busi- 
ness of the Division. Such plan shall specify the factors which shall 
be included in determining the costs and allowable costs of each mem- 
ber of the Division. Upon approval b}^ the Administrator of such 
a system of cost-accounting for the Industry, complete advice con- 
cerning it shall be distributed by the Divisional Code Authority to 
all members of the Division. Thereafter no member of the Division 
shall initiate a selling price below his own allowable cost or sell the 
products of the Division at such price or upon such terms or condi- 
tions of sale as will result in the purchaser's paying for such product 
less than the allowable cost to the seller, except where sales below 
such costs are necessary to meet the competition of another member 
of the Industry or of products of equivalent design, character, qual- 
ity or specification manufactured outside the United States, pro- 
vided that such sales below allowable costs are immediately reported 
to the Divisional Code Authority and provided further that such 
sales below allowable cost may not be continued beyond such time 
as the Divisional Code Authority notifies such member that such 
sales below his allowable cost are no longer necessary to meet such 
competition. 

2. The foregoing provisions shall not apply in cases in which any 
member of the Industry sells, or offers to sell, dropped lines, seconds 
or inventories which must be converted into cash to meet emergency 
needs, provided that such sales are made in such manner and on 
such terms and conditions as the Divisional Code Authority may 
establish and as are necessary to move such products into buyer's 
hands. 

3. On the effective date each member of the Dry Ground Mica 
Division and the Wet Ground Mica Division shall file with the 
Divisional Code Authority his net price list and terms and condi- 
tions of sale. The Divisional Code Authority shall immediately 
send copies thereof to all known manufacturers of such ])roducts. 

lievised price lists and terms and conditions of sale may be filed 
from time to time with the Divisional Code Authority by any mem- 
ber of the resi)ective Division of the Industi-y, to become effective 
ten days after filing. Copies thereof with notice of the effective 
date specified shall be immediately sent to all known members of 



309 

that Division of the Industry who thereupon may file, if they so 
desire, revisions of their price lists and terms and conditions of 
sale to meet prices previously filed which may become effective upon 
the date when the revised price list first filed shall go into effect. 

The Divisional Code Authority may, if it feels that the circum- 
stances require it, authorize a shorter period than the ten days 
referred to above. 

The Divisional Code Authority shall make such prices and other 
related material available to inspection by the public at its official 
place of business during usual office hours.^ 

4. Each Divisional Code Authority shall have power on its own 
initiative, or on the complaint of any member of the Industry, to 
investigate any price for any product shown in any price list filed 
with such Divisional Code Authority b}' any member of the Industry, 
and for the purpose of investigation thereof may require such mem- 
ber of the Industry to furnish such information concerning his al- 
lowable cost of such product as may be necessary, provided, however, 
that all such information shall be subject to the provisions of Article 
VII, Section 1, sub-section (h) of this Code. 

5. No member of this Industry shall sell, directly or indirectly by 
any means whatsoever, any product of the Industry at a price lower, 
or on more favorable terms of payment than those provided for in 
his own published and filed net price list and/or other conditions 
of sale. 

6. If and when a majority of the members of the Sheet Mica Di- 
vision by secret ballot, under supervision of the National Code 
Authority, shall so decide, provided such ballot shall be taken within 
ninety (90) days after the effective date, the following provisions 
shall go into operation in that Division : 

(a) Upon notice in writing from the Divisional Code Authority, 
each member of the Division shall, within ten days after such no- 
tice, file with the Divisional Code Authority a net price list and 
terms and conditions of sale. The Divisional Code Authority shall 
immediately .send copies thereof to all known manufacturers of such 
products. 

Kevised price lists and terms and conditions of sale may be filed 
from time to time with the Divisional Code Authority by any mem- 
ber of the Division, to become effective ten days after filing. Copies 
thereof with notice of the effective date specified shall be immediately 
sent to all known members of the Division who thereupon may file, 
if they so desire, revisions of their price lists and terms and con- 
ditions of sale to meet prices previously filed which may become 
effective upon the date when the revised price list first filed shall 
go into effect. 

The Divisional Code Authority may, if it feels that the circum- 
stances require it, authorize a shorter period than the ten days re- 
ferred to above. 

The Divisional Code Authority shall make such prices and other 
related material available to inspection by the public at its official 
place of business and during usual office hours. 

(b) Each member of the Sheet Mica Division who is also a mica 
miner shall use as his cost price of mica a price not less than the 

* See paragraph 2 of order approving this Code. 



310 

prevailing market price of such mica at the time when his price is 
filed with the Divisional Code Authority; such prevailing market 
price of mica shall be based upon the price being generally paid for 
run-of-mine mica of the equivalent quality in that district by other 
buyers. The Divisional Code Authority shall from time to time 
collect and report the market price which manufacturers and fab- 
ricators shall use for the valuation of mica referred to above. 

(c) If and when this provision is put into operation by the Sheet 
Mica Division, such action shall be immediately reported by the 
National Code Authority to the Administrator.^ 

T. (a) Within ten (10) days after receiving notice to that effect 
from tlie National Code Authority, each member of the industry 
shall file and maintain on file with such impartial agency as the 
National Code Authority may designate, a list of such products of 
the Industry, together with a complete and accurate description of 
each such product, which he or it produces in the United States of 
America, in not less than such q^uantities as the National Code Au- 
thority may specify, together with his allowable co,st of producing 
such products, determined in accordance with Section 1 of this 
Article. 

(b) After such impartial agency shall have published to members 
of the Industry the lowest allowable cost of each product so filed 
with it, without, however, disclosing the identity of the member 
filing such cost, no member of the Industry shall sell any product 
of the Industry below the lowest allowable cost of production of a 
product of equivalent design, character, quality or specifications, so 
filed with the National Code Authority and published by it in ac- 
cordance with the provisions of this Section; provided, however, 
that the provisions of this Section shall not apply to any products, 
the total production of which in the United States of America, is 
less than five per cent of the total consumption of sucli products in 
the United States. 

(c) The impartial a,o;ency designated by the National Code Au- 
thority shall make findings of facts which shall be prima facie cor- 
rect, on any disputed questions of fact arising under this section, 
which findings shall be subject to review by the Administrator. 

8. No member of this Industry shall guarantee a customer against 
a decline or against an increase in price, except by written contracts, 
copies of which shall be filed with the Divisional Code Authority. 

9. When a member of the Industry sells Industry and non-Indus- 
try products together to the same customer, he shall not quote a 
combined lump sum price which is less than the sum of the price at 
which he sells or offers to sell the separate products. 

10. Each member of the Industry shall keep on file with the Divi- 
sional Code Autliority an up-to-date list of his distributors and/or 
agents. 

11. No member of the Industry shall knowingly make an invoice 
and/or contract which is a false record of any transaction. 

12. No member of this Industry shall allow any discount of any 
kind except, (a) a cash discount not to exceed 2% for payment 
within ten days, and/or (b) quantity discounts which shall be filed 
with the respective Divisional Code Autliority and made a part of 

• See paragraph 2 of order approving this Code. 



311 

such price lists as are required to be filed under the provisions of 
Sections 3 and 6 of this Article. 

13. No member of the Industry shall make or cause or permit to 
be made or published, any untrue or deceptive statements by way 
of advertisements, labels, or otherwise, concerning the grade, qual- 
ity, quantity, description, character, nature, origin, size, or prepara- 
tion of any product of the Industry which have the tendency and 
capacity to mislead or deceive purchasers or prospective purchasers. 

14. No member of the Industry shall defame competitors by falsely 
imputing to them dishonorable conduct, inability to perform con- 
tracts, questionable credit standing, or by false representation or 
false disparagement of the gi-ade or quality of their goods, which 
imputations have the tendency and capacity to mislead or deceive 
purcliasers or prospective purchasers. 

15. No member of the Industry sliall 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. This 
provision shall not be construed to prohibit free and general dis- 
tribution of articles commonly used for advertising except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

16. No member of the Industry shall induce or attempt to induce 
the breach of an exii-ting contract between competitors and/or cus- 
tomers by any false or deceptive means whatsoever, or interfere with 
or obstruct the performance of any such contractual duties, or serv- 
ices by any such means Avhatsoever. 

17. Every member of the Di-y Ground Mica Division and the Wet 
Ground Mica Division shall send to the Divisional Code Authority 
of his respective Division within five days from date thereof, a 
duplicate cop}^ of each invoice of sale and any contract entered into 
for the sale of any of the products of the Industry. 

18. Carload lot prices shall apply only upon single shipments 
actually made in carload lots. (A carload to be determined b}" the 
railroad tariff on minimum loadings.) When, however, goods are 
moved by truck from the producer's factory or warehouse, to con- 
sumer's premises, fortj-eight hours may be allowed for completing 
the delivery of a carload. 

19. Any member of this Industry may pay a commission for sales 
services, which commissions shall be filed with the Divisional Code 
Authority of the respective Division of the Industry in the same 
manner and under the same conditions as provided in Sections 3, 5, 
and 6a hereof. 

20. All members of the Dry Ground Mica Division shall bill all 
bags filled with mica at a uniform price, individually determined by 
them, according to size. The prices thereof are to be included in the 
price lists to be filed with the Divisional Code Authority. 

21. No member of this Industry shall apply a reduced quantity 
price to orders or shipments covering quantities less than the quan- 
tities for which such reduced prices have been filed, or in any other 
way depart from his filed and established price list. 



312 

22. "Wlien any member of this Industry makes an allowance to a 
customer because of inferior quality or defective material (unless it 
is a complete rejection for which full credit is given by the member 
of this Industry), he shall report such allowance within five days 
after such allowance is made to the Divisional Code Authority of 
his respective Division. 

23. Nothing contained herein shall be interpreted to prevent or 
prohibit any member of this Code from selling distressed products 
of this Industry to any other member of his division of the Code at 
any price he may see tit, irrespective of whether that price is below 
his actual cost price as determined by the procedure referred to in 
paragraphs 1, 3, and 6 above. 

24. In the Dry Ground Mica Division, differentials between prices 
for carload and less than carload shipments shall be determined by 
the Divisional Code Authority subject, upon review, to disapproval 
by the Achninistrator. 

Article IX — Enforcement and Arbitration 

1. On the effective date the provisions of this Code shall be the 
standards of Fair Competition for the entire Mica Industry as de- 
fined above. Any violation or violations of such standards in any 
transactions by or involving any member of this Industry shall be 
deemed an unfair method of com[)etition and as such shall be sub- 
ject to the penalties provided in the Act. Any violation of any pro- 
visions of this Code may be reported by any member of the Industry. 
Such violations shall be investigated by the Divisional Code Au- 
thorit}^ who shall report the facts to the National Code Authority 
with a recommendation as to the innocence or guilt of the party or 
parties involved. 

2. The National Code Authority or the Divisional Code Authority, 
as the case may be, shall hear both sides of the case and shall decide 
whether or not in its opinion a violation or violations have occurred. 

3. If one or more complaints of a similar character against any 
member of the Industry shall have been proven to be unfounded, the 
National or Divisional Code Authority shall, at its discretion, either 
discontinue or suspend investigations until the complainant shall 
present definite proof of a violation. 

4. In case of a dispute between members of the Industry', the 
National Code Authority may resolve itself into a Board of Arbi- 
tration, and if the parties to the dispute agree, may arbitrate the 
difference, or may set up such machinery as may be necessary and 
desired by tlic parties to conduct an arbitration. 

5. The National Code Authority shall use its influence and good 
offices to arbitrate disputes between members of the Industr}'' and 
members of other Industries. 

Article X — General 

1. Employees shall have the right to organize and bargain col- 
lectively through representatives of their own choosing, and shall be 
free from interference, restraint, or coercion of employers of labor, 
or their agents, in the designation of such representatives or in self- 



313 

organization or in other concerted activities for the purpose of col- 
lective bargaining or other mutual aid or protection. 

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

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. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provision 
of sub-section (b) of Section 10 of the National Industrial Recovery 
Act, from time to time to ciincel or modify any order, approval, 
license, rule or regulation issued under title 1 of said Act and spe- 
cifically, 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. 

5. No provision of this Code shall be interpreted or applied in such 
a manner as to jDromote monopolies or monopolistic practices; permit 
or encourage unfair competition, eliminate, discriminate against, or 
oppress small enterprises. 

6. Such of the provisions of this Code as are not required to be 
included therein by the National Industrial Recovery Act, may, with 
the approval of the President, be modified or eliminated as changes 
in circumstances or experiences may indicate. It is cont^emplated 
that from time to time supplementary provisions to this Code will 
be submitted for the approval of the President, after such hearings 
as he may prescribe, to 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 National Industrial 
Recovery Act consistent with the provisions thereof. 

7. Each corporation, partnership, or individual doing business as 
a separate entity and having become a member of this Code as indi- 
cated by his written assent thereto, shall have one vote in the affairs 
of this Industry. 

8. This code shall become effective upon the second Monday after 
its approval by the President. 



Approved Code No. 306. 
Registry No. 1013-13. 



O 



Approved Code No. 307 
CODE OF FAIR COMPETITION 

FOR THE 

STAY MANUFACTURING INDUSTRY 

As Approved on February 26, 1934 



ORDER 



Approving Code of Fair Competition for the Stat Manufacturing 

Industry 

An apjjlication having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recover}' Act, approved June 16, 1933, for approval of a Code of 
Fair Comjoetition for the Stay 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; provided 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 condi- 
tion on the approval of said Code; and provided further that the 
words " employee or " be eliminated from Article VII, Section 9. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Ad viinist rat or. 

Washington, D.C. 

Fehruanj 26, 1934. 

42461" 376-134 34 (315) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the approved Code of Fair Competition 
for the Stay Manufacturing Industry, the hearing on which was con- 
ducted in Washington on January 16, 1934, in accordance with the 
provisions of the National Industrial Recovery Act. 

The minimum wages provided in this code are thirty-five cents 
(350) per hour for males and females, with the provision that when 
females of the skilled class perform the same work as males they are 
to receive the same rate of pay. Learners are to receive eighty per 
cent (80%) of the minimum wage, and such learner class is limited 
to five per cent (5%) of the total number of employees in any 
establishment. 

The maximum hours provided in this code are forty (40) hours 
per week Avith an allowance of five (5) hours per week during any 
eight (8) weeks in a six (6) months' period, with the provision that 
all time in excess of eight (8) hours per day or forty (40) hours per 
week shall be paid at the rate of time and one-half. 

No person under sixteen (16) years of age shall be employed or 
engaged in this industry. Home work in this industry shall be 
abolished on June 1, 1934. 

The word " stay as used in this industry, was originally inter- 
preted to mean a piece of material used to reinforce, or strengthen, 
parts of shoes, sporting goods, and other articles usually made of 
leather. It has since been corrupted so that it now refers to rein- 
forcements, trimmings of all kinds made in continuous lengihs and 
otherwise, made of leather, imitation leather, and other fabrics in 
widths from one-sixteenth {^) of an inch to four (4) inches wide. 

These products are sometimes folded in various ways, perforated, 
pinked, or painted with lacquer. In other cases two (2) or more 
units are combined by cementing or stitching. There are also bind- 
ings and interlacings in numerous forms and styles. 

Approximately seventy-five per cent (75%) of the volume of the 
products of this industry are sold to the shoe manufacturing indus- 
try. A considerable volume, although a diminishing volume, is sold 
to the automobile ti-adc. Bindings and seam weltings are furnished 
to the sj)orting goods manufacturers. Bindings, facings, and seam 
weltings are made for tlie spat and gaiter manufacturers. Scam 
weltings, pipings, and bindings are made for the pocketbook, bag 
and novelty leather manufacturers. 

The industry is largely a service business as the majority of the 
products arc manufactured on special order. No large inventories 
are kept by tbe manufacturers. 

A proj)Osed code was originally submitted in July, 1933. At that 
time the minimum wage proposed was thirteen dollars ($13.00) per 

(31G) 



317 

week, and the hours Tvere to be an average of forty (40) hours per 
week over a six (6) month period and permitting forty-eight (48) 
hours in any particular week. By their own volition the majority 
of the members of this industry operated under these provisions. 
This caused an increase of approximately twenty per cent (20%) 
in their payrolls, and approximately twenty per cent (20%) in the 
number of employees. The labor provisions in the approved code 
will cause another increase of twenty per cent (20%) in the payrolls 
and in the total number of employees, thus making a total increase 
of approximately forty per cent (40% ) over the figures in the early 
part of 1933. 

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 
industry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanctions and supervision, 
by eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue 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 unemjiloyment, by improving standarcls 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 
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. 

Respectfully, 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 
February 26. 1934. 



CODE OF FAIR COMPETITION FOR THE STAY 
MANUFACTURING INDUSTRY 

Article I — Pueposes 

To effect the policies of Title I of the National Industrial Re- 
covery Act, this Code is established as a Code of Fair Competition, 
for the Stay Manufacturing Industry, and its provisions shall be 
the standards of fair competition for such industry and shall be 
binding upon every member thereof. 

Abticle II — Definitions 

Section 1. The term " industry " as used herein is defined to mean 
the manufacturing, processing, and/or sale by manufacturer or 
processor of stays and trimmings of all kinds in continuous lengths 
or otherwise used on shoes or other articles of manufacture, on which 
these products, made either from leather, imitation leather, cloth, 
or other fabrics, are used, and includes, without limitation, dealing 
in such stays and trimmings which are manufactured or processed 
by others for sale under trade marks, trade names or descriptions 
other than those of the manufacturer or processor of such stays or 
trimmings. 

Section 2. The term " member of the industry " includes, but 
without limitation, all those engaged in the industry either as an 
employer or on his own behalf. 

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

Section 4. The term " learner " as used herein means unskilled 
workers with less than six weeks' experience in the industry. 

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

Article III — Hours 

Section 1. No employee, including office and clerical employees, 
shall be permitted to work in excess of forty hours in any one week 
or eight hours in any twenty-four hour period, provided, however, 
that in special cases of emergency or where restriction of hours of 
skilled workers will dehiy urgent service to the trade served by the 
industry during any eight consecutive or non-consecutive weeks of a 
six month period (tlie first period to begin on January 15, 1933), 
employees may work not more than forty-five hours in any one week. 
Time in excess of eight -hours in any twenty-four hour period or 
forty hoiu's per week shall be paid on a basis of time and one-half. 

(318) 



319 

Section 2. The provisions of this article shall not apply to : 

(a) Persons who are employed in a managerial or executive 
capacity who earn thirty five dollars ($35.00) or more per week, to 
outside salesmen, or to employees engaged in emergency repair work; 
l^rovided that employees engaged in emergency repair work shall be 
paid at least one and one-half times their normal rate for all hours 
worked in excess of eight (8) hours in any twenty-four (24) hour 
period or forty (40) hours per week. Reports shall be made monthly 
to the Code Authority by every emploj'er stating the number of 
hours so worked in excess of the maximum by emergency repair 
workers. 

(b) Fii-emen and Engineers who shall not be permitted to work in 
excess of fifty (50) hours per week during normal periods and fifty- 
five (55) hours during peak periods as described in Section 1 of this 
article. 

(c) AVatchmen who shall not be permitted to work in excess of 
sixty (GO) hours in any one week. 

Section 3. The provisions of Section 1 of this article shall apply 
to employers (owners, partners, officers, members of the industry,) 
engaged in a productive capacity, but shall not apply to members 
of the industry who are exclusively or wholly engaged in an executive 
or administrative capacity'. 

Section 4. No employee shall be permitted to work more than 
five (5) days in an}^ calendar week, except employees specified in 
Section 2. 

Section 5. No employer shall knowingly permit an employee to 
work for an}^ time which, when totaled with that already performed 
with another employer or employers, exceeds the maximum hours 
permitted herein. 

Article IV — Wages 

Section 1. No employee shall be paid less than at the rate of thirty- 
five cents (35((') ])er hour, provided, however, that learners during a 
six (6) Aveek period may be paid at a rate not less than eighty (80) 
per cent of the minimum rate; such learner class, however, shall not 
consist of more than five (5) per cent of all employees in any estab- 
lishment, but any establishment may have at least one such employee. 

Section 2. This article establishes a minimum rate of pay which 
shall apply, irrespective of Avhether an employee is actual!}^ com- 
pensated on a time rate, piece-work, or other basis, such piece-work 
or other basic rate of compensation above the minimum, however, is 
to be determined by the average capacity of regular workers. 

Section 3. The Code Authority may present for approval to the 
Administrator, after notice and hearing, recommendations as to up- 
ward adjustments in minimum Avages generally or for specified locali- 
ties or occupations, in order to effectuate the purposes of the Act. 

Section 4. There shall be an equitable adjustment of all wages 
above minimum, and to that end, within sixty (60) days or two 
months from the approval of this Code, the Code Authority shall 
submit for the approval of the Administrator a proposal for adjust- 
ment in wages above the minimum. Upon approval by the Adminis- 
trator, after such hearing as he may prescribe, such proposal shall 



320 

become binding as a part of this code, provided, however, that in no 
event shall prevailing hourly rates of pay be reduced. 

Section 5. Female employees of the skilled class who perform the 
same work as male employees shall receive the same rate of pay as 
male employees. 

Section 6. A person whose earning capacity is limited because of 
age or physical or mental handicap or other incapacity may be em- 
ployed on light or unskilled work, at a wage below the minimum 
established by this code, if the employer obtains from the State Au- 
thority 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, provided, however, that the 
number of such employees shall not be in excess of five (5) per cent 
of the total number of emploj^^ees in any establishment, but any 
establishment may have at least one such employee. Each employer 
shall file with the Code Authority a list of all such persons employed 
by him. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
emploj'^ed 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 thirty (30) days after the effective date 
of the code, a list of such operations or occupations. In Siny 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. 

Section 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 tlirough 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 bo 
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. 

Section 3. No emplojT.r shall reclassify emploj'oes or duties of oc- 
cupations performed, or engage in any other subterfuge so as to 
defeat the purposes or j^rovisions of the Act or of this Code, and in 
this connection, employees engaged in two or more occupations or 
positions having difFerent duties connected therewith, one or more 
of which being limited by maximum hours, shall be classified under 
the limited hours position which is limited to the fewer number of 
hours per week, and sliall not be permitted to work a total number 
of hours in excess of those prescribed for such position. 



321 

Section 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. 

Section 5. No provision in this code shall supersede any State 
or Federal law which imposes on employers more stringent require- 
ments as to age of emplo3^ees, 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. 

Section 6. No home work shall be permitted in this industry 
after June 1, 1934. 

Section 7. All employers shall post copies of all labor provisions 
of this code in conspicuous places accessible to employees. 

Article VI — Organization Powers and Duties of the Code 

Authority 

Section 1. There shall forthwith be constituted a Code Authority 
consisting of the members of the Executive Committee of the Na- 
tional Association of Stay Manufacturers. 

Section 2. In addition to membership as above p^o^^ded, not 
more than three members, without vote, may be appointed by the 
Administrator. 

Section 3. Each trade or industrial association directly or in- 
directly participating in the selection or activities of the Code Au- 
thority shall (1) impose no inequitable restrictions on memberships 
and (2) submit to the Administrator true copies of its articles or 
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 neces- 
sary to effectuate the purposes of the Act. 

Section 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 Adjninistrator 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 composition and method of selection 
of the Code Authorit5^ 

Section 5. Members of the industry shall be entitled to participate 
in and share the benefits of the activities of the Code Authority and 
to participate in the selection of the members thereof by sustaining 
their reasonable share of the expenses of its administration. Such 
reasonable share of the expenses of administration shall be deter- 
mined by the Code Authority, subject to review by the Administra- 
tor, on the basis of volume of business and/or such other factors as 
may be deemed equitable. 

Section 6. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent, or employee 
of the Code Authority. Nor shall any member of the Code Author- 
ity, exercising reasonable diligence in the conduct of his duties here- 
under, be liable to anyone for any action or omission to act under 



322 

this Code, except for his own willful malfeasance, or misfeasance, or 
nonfeasance,. 

Section 7. The Code Authority shall have the following further 
powers and duties, and if the Administrator shall determine that any 
action of the Code Autliority 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 Author- 
ity or agency pending final action v/hich shall be taken only upon 
approval by the Administrator. 

(a) To insure the execution of the provisions of this code and 
provide for the compliance of the industry therewith. 

(b) To adopt by laws 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, and, in addition to 
information required to be submitted to the Code Authority, all or 
any of the persons subject to such code, agreement, or license 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 State agencies as the Administrator may designate; 
nor shall anything in any code, agreement, or license relieve any per- 
son of any existing obligation to furnish reports to Government 
agencies. 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 designated by the Administrator. 

(d) To use such tiade associations and other agencies as it deems 
proper for the carrj-ing out of any of its activities provided for here- 
in, provided that nothing herein shall relieve the Code Authority of 
its duties or responsibilities under this Code. 

(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 or affect members of this 
industry. 

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

(g) 'J'o cooperate Avith the Administiator in regulating the use 
of any N.lt.A. insignia solely by those members of the industry who 
have assented to, and are complying witli, this Code. 

(h) To recommend to the Achuinistrator 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 
A(hninistrator measures for indiisti'ial i)huining, including stabili- 
zation of einploynicnt. 

Airru'Lp: VII — Trade PRAciifE Riti.es 

The following practices constitute unfair methods of competition 
of the industry and are prohibited; 



323 

Section 1. 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, trademark, grade, quality, 
quantity, origin, size, substance, character, nature, finish, material, 
content or preparation) or credit terms, values, policies, services, 
or the nature or form of the business conducted. 

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

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

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

Section 5. Threats of Laiw Suits. — No member of the industiy 
shall publish or circulate unjustified or unwaiTanted threats of legal 
proceedings which tend to or have the effect of harassing competi- 
tors or intimidating their customers. 

Section 6. Secret Rehates. — No member of the industry shall offer 
or make any payment or allowance of a rebate, refund, commission, 
credit, unearned discount, or excess allowance, whether in the form 
of money or otherwise, nor shall a member of the industry secretly 
offer or extend to any customer any special service or privilege 
for the purpose of influencing a sale. 

Section 7. Selling on Gonsigmnent. — 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. 

Section 8. 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 influencing or rewarding the action of any em- 
ployee, agent, or representative of another in relation to the busi- 
ness of the employer of such employee, the principal of such agent 
or the represented party, without the knowledge of such employer, 
principal or party. 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 hereinbefore defined. 

Section 9. 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 employee or customer or 
source of supply; nor shall any such member interfere with or 
obstruct the performance of such contractual duties or services.^ 

Section 10. Coercion. — No member of the industry shall require 
that the purchase or lease of any goods be a prerequisite to the 
purchase or lease of any other goods. 

1 See paragiaph 2 of ordei' approving this Code. 



324 

Section 11. Blacklisting. — No member of the industry shall join 
or participate with other members of the industry who with such 
member constitute a substantial per cent of the business in any 
specific product or products of the industry, in any transaction 
known in law as a blacklist, including any practice or device (such 
as a whitelist), which accomplishes the purpose of a blacklist. 

Section 12. Discounts. — Discounts for cash shall not be in excess 
of five (5) per cent. The general t«rms of the industry shall be five 
(5) per cent tenth of month following purchase; three (3) per cent 
twenty -fifth of month following purchase; net thereafter for thirty 
(30) days, after which interest will be charged at the rate of six (6) 
per cent per annum. No post datings shall be permitted. 

Section 13. Return of Merchandise. — The acceptance for credit 
of returned goods made according to bona fide orders, shall consti- 
tute unfair competition. The granting of credit for, or allowance 
made for defective goods or for goods not made according to specifi- 
cations, if claim is not made within fifteen days after receipt of 
merchandise by the customer, shall constitute unfair competition. 

Section 14. Lahor Jobs. — No member of the industry shall in- 
voice work done on materials destined for the shoe industry on a 
basis of " labor cost only." When material is furnished by the cus- 
tomer such material must be billed by the customer to the manufac- 
turer at the fair market price. 

Section 15. Blanket and Future Orders. — The soliciting and 
acceptance of blanket and future orders, with no specifications as to 
time of delivery, for a quantity of merchandise beyond the cus- 
tomer's reasonable requirements, for the purpose of according to the 
customer a lower quantity price than would be justified by his actual 
purchases, is unfair trade practice, and constitutes a violation of 
this Code. All blanket and future orders accepted by any member 
of the industry must be bona fide orders and must provide that .the 
entire quantity on the order must be accepted by the purchaser within 
a reasonable time but in no case to exceed four months. 

Section 16. Members of this industry shall abide by the trade 
term provisions of the approved code of their suppliers. 

Article VIII — Standard Accounting 

Section 1. The Code Autliority shall as soon as practicable, for- 
mulate a uniform and standard method of accounting and costing 
for the industry and submit the same to the Administrator for his 
approval. When it shall have been approved by the Administrator 
after such notice and hearing as may be necessary every member of 
ll)e industry sliall use an accounting and costing method which con- 
forms to the i^rinciples of and is at least as detailed and complete 
as such uniform standard method. 

Section 2. After approval of said cost accounting method as above 
provided, no member shall sell any product of the industry at less 
than the cost thereof to such member, which cost shall be determined 
pursuant to the method of accounting and costing prescribed by Sec- 
tion 1 of this article as soon as such method is approved. Until such 
method of acconnting is approved a schedule of minimum cost fac- 
tors shall be prescribed l)y the Code Authority subject to the approval 



325 

of the Administrator, and members of the industry sliall not sell 
below their costs as determined in accordance with cost factors con- 
tained in such schedule until such time as the standard method of 
accounting and costing is approved in accordance with Section 1 
hereof. Provided, however, that all sales of perishable, obsolete or 
distress merchandise, sometimes called " jobs " which are sold below 
the minimum prices for regular similar goods determined in accord- 
ance with either manner of cost determination provided for herein 
shall be reported immediately to the Secretary of the Code Authority 
in such detail as he may require as to quantity, nature, and origin 
of the goods sold; and provided further that any member of the 
industry shall be permitted to sell below his cost as determined in 
accordance with Section 1 hereof to meet a competitor's price if said 
competitor's price is not violative of this article. 

Article IX — Modifications 

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

Section 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 Administrator. 

Article X — ^Monopolies, Etc. 

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

Article XI — Price Increases 

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

Article XII — Effective Date 

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



Approved Code No. 307. 
Registry No. 1G55-01. 



o 



Approved Code No. 308 
CODE OF FAIR COMPETITION 

FOR THt 

FISHERY INDUSTRY 

As Approved on February 26, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 
Code of Fair Competition for the Fishery Industry 

An application having been duly made, pursuant to and hi full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Fishery Industry, and hearings having 
been held thereon and the Administrator having rendered his report 
containing an analysis of the said Code of Fair Competition together 
with his recommendations and findings AAdth respect thereto, and 
the Administrator having found that the said Code of Fair Compe- 
tition complies in all respects with the pertinent provisions of Title 
I of said Act and that the requirements of clauses (1) and (2) 
of subsection (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by Title 
I of the National Industrial Recovery Act approved June 16, 1933, 
and otherwise, do adopt and approve the report, recommendations 
and findings of the Administrator and do order that the said Code 
of Fair Competition be and it is hereby approved; provided how- 
ever, that provisions thereof shall not become effective and they are 
hereby stayed for a period of 10 days in order to afford considera- 
tion of the objections of any interested parties, and at the expira- 
tion of which period the said Code shall become effective unless I 
shall by my further Order otherwise determine or extend such stay. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 
Hugh S. Johnson, 

A dvvinis trot or. 

The White House, 

February 26^ IdSIf,. 

42462° 376-135 84 (327) 



LETTER OF TRANSMITTAL 

The President, 

The White House. 
Sir: A public hearing on the Code of Fair Competition for the 
Fisherj'- Industry of the United States, submitted and sponsored by 
the National Fisheries Association, 109 Cliff Street, New York City, 
was held in Washington, D.C., on the 11th and 12th of December, 
1933. This hearing was conducted jointly by the Ao-ricultural Ad- 
justment Administration and the National Recovery Administration, 
in accordance with the provisions of Title I of the National Industrial 
Recovery Act. 

THE FISHERY INDUSTRY 

The fishery industry as defined in the code includes : 

The catching or taking from the water — 

The cultivating- — 

The farming and other artificial propagation (except propagation 
of goldfish and tropical fish) — 

The processing — 

The wholesaling, if, but only if the handler or distributor has 
also done the processing — 

of fish and all other commercial products of aquatic life in both salt 
and fresh water, as carried on in the several States, the District of 
Columbia, the several Territories of the United States, the insular 
possessions or other places under the jurisdiction of the United 
States; or on United States vessels, wherever the actual taking or 
processing of such products of the industry by said vessels takes 
place. The terms " fishery industry " or " industry " includes also 
commission merchants trading in products of the industry. 

The commercial fishery industiy is prosecuted along the entire 
seacoast of the United States and in our interior lakes, rivers, and 
streams navigable to fishing craft. A large fishery also is conducted 
in Alaska; and fishery products are harvested in the waters of Hawaii 
and other insular possessions under the jurisdiction of the United 
States. The industry is based on one of our great natural resources, 
and is the source of a valuable protein food for the nation. 

According to figures published by the United States Bureau of 
Fisheries, the industry as conducted in the United States and Al'aska, 
employed in 1931 about 123,000 persons as fishermen, 4,200 on trans- 
porting craft, and about 78,000 were employed in the processing and 
wholesale disti'ibuting industries, a total of about 200,000 persons, 
exclusive of duplication. The catch amounted to 2,057,317,000 
pounds, valued at $77,344,000. This value, together with an esti- 
mated revenue of $3,130,000 received by persons on transporting craft 
anrl $45,483,000 received as salaries and wages by persons in whole- 

(328) 



' 329 

sale and manufacturings establishments, makes a total of $125,963,000 
as the income of primary handlers of fisher}^ products. 

In 1931, in the United States and Alaska, the production of canned 
fishery products amounted to 506.702,000 pounds, valued at $62,- 
940,000; and the output of by-products was val'ued at $18,538,000. 
The production of fresh and frozen packaged fishery products 
amounted to 139,283,000 ])ounds, valued at $23,076,000. The produc- 
tion of cured fishery products amounted to 98.969,000 pounds, valued 
at $12,364,000. The pack of frozen fishery ]Droducts amounted to 
112,257,000 pounds, estimated to be valued at $11,000,000, making the 
total value of all processed products in the entire United States and 
Alaska in 1931, about $128,000,000. It is estimated that about 600,- 
000,000 pounds of fishery products valued at $47,000,000 were mar- 
keted fresh in ice, making a total marketed value to primary handlers 
of all fishery products in 1931 of about $175,000,000. there were 
2,992 firms engaged in processing the above products of the industry. 

Fishery products imported for consumption were val'ued at 
$43,033,000, while domestic exports were valued at $11,574,000. 

The code as submitted establishes a National Code Authority for 
the industry which has certain specified powers and duties for admin- 
istering the National Code. In addition, in order to promote the 
policy of the Act and to effectuate the necessary local administration 
of the p]-ovisions of the National Code, any trade group or association 
in the industry may prepare, and, with your approval, adopt a divi- 
sional code. The scope of these divisional codes is outlined in the 
National Code herewith. Each divisional code is to be administered 
by an Executive Committee, the powers and duties of which are also 
outlined in the National Code, and are to be further extended in the 
rCvspective divisional codes. The divisional codes also provide for 
additions and exceptions from the provisions of the National Code 
where the conditions peculiar to such divisions necessitate changes. 

THE FISHING FUNCTION 

The fishing function in the industry, like that of farming, is sorely 
depressed. This is demonstrated by the fact that the catch of fishery 
products in the United States and Alaska in 1931, according to the 
figures published by the Bureau of Fisheries, was 19 per cent less in 
volume than in the previous year, 29 per cent less in value, and the 
average price per pound was about 12 per cent less. In detail, the 
catch in 1929 amounted to 3,570,000,000 pounds, valued at $123,- 
000,000; in 1930, 3,290,000,000 pounds, valued at $109,000,000; and 
in 1931, 2,660,000,000 pounds, valued at $77,000,000. It is estimated 
that the volume and vaKie of the catch for 1932 was still less than 
the respective volume and value for 1931. 

This decline in value has caused great hardship on the fishermen 
for their income, in nearly all cases, is directly dependent upon the 
sales value of their catch rather than receipt of income from Avages. 
Therefore no w^age scale has been set for the fishermen that operate 
individually or as members of crews working on a profit-sharing 
basis in a joint venture. However in drafting the Code the above 
facts were given careful consideration, and provisions are now 
included in the Code which are intended to react favorably in 



330 

increasing tlie income of the fishermen. One such provision will 
minimize or overcome entirely destructive price-cutting, which gen- 
erally in the long run results in depressed prices to fishermen. 

Other provisions of the code which it is believed will react favor-^ 
ably in raising the income of fishermen are those relative to open 
bookkeeping with respect to accounts of profit-sharing agreements, 
purchases from producers, misrepresentation of weights and meas- 
ures, and the reporting of dishonest accounts. The latter provision 
will be of particular benefit to fishermen marketing their products 
on consignment. Also it is the duty of the several Executive Com- 
mittees, which may be established pursuant to the code, to make a 
study of the operation of the profit-sharing and other cooperative 
systems of producing or catching fishery products peculiar to their 
respective divisions of the industry — all with the view of insuring 
to fishermen and owners of fishing craft alike a fair and just return. 

As fishing is an occupation deiDencling upon the presence of fish, 
season, tide, wind, weather, State laws, and the like, it is undesirable 
to limit the hours of those engaged in the fishing enterprise. There- 
fore no limitation as to hours of labor has been placed on those 
engaged in this function. 

THE PROCESSING AND DISTRIBUTING FUNCTIONS 

Processing. — The terms of the code submitted herewith govern 
those firms engaged in the processing function. This function in- 
cludes the packing in ice of, filleting of, cutting of, freezing of, 
salting of, smoking of, drying of, canning of, extracting oil from, 
manufacturing meal or fertilizer from, products of the industry; 
or otherwise manipulating products of the industry. Secondary 
processing of these products is not included within the scope of the 
code. The above functions within the fishery industry are conducted 
almost solely on shore, except for those conducted on a few factory 
ships owned by citizens of the United States, anchored on the high 
seas outside of territorial waters. Hour and wage provisions of the 
code, however, apply to those engaged in the latter function, as well 
as those engaged in the processing function on shore. Some prod- 
ucts of the industry are processed aboard fishing vessels by members 
of the crew, as for instance the icing of fish, and possibly the salting 
of fish. However, these operations aboard fishing vessels have been 
considered a part of the trip operation, and have been exempted 
from the liour and wage provisions of the code. 

D'/stributing. — Tlie terms of the code submitted herewith govern 
those distributors who also conduct a processing operation as out- 
lined above. Thus the code covers the operation of firms that dis- 
tribute products of the industry at wholesale, and which also pack 
in ice, freeze, salt, smoke, dry, or otherwise manipulate products of 
the industry. 

HOURS AND WAGES 

iiy the terms of the code no clerical, accounting, or other office 
employw! shall be permitted to work in excess of forty hours in any 
week. No other employee shall be permitted to work in excess of 
ninety hours in any two consecutive weeks. This latter provision 



331 

I am approving because of the perishable nature of the product 
handled in the industry, and the uncertainty as to the time when the 
product is available for processing. Certain employees in the latter 
group are permitted to work in excess of ninety hours in any two 
consecutive weeks where unusual or emergency conditions exist, al< 
though in some of these cases the hourly wage is increased by one- 
third for overtime work. 

The Code establishes a minimum rate of pay of $16.00 per week 
for clerical, accounting, or other office employees, except office boys, 
whose minimum rate or pay is $14.00 per week. The minimum rate 
of pay for all other employees is $13.00 per week in the South and 
$15.00 per week in the North in cities under 100,000 population ; and 
$14.00 per week in the South and $16.00 per week in the North in 
cities of 100,000 or more population. The minimum rate of pay as 
set forth above is guaranteed regardless of whether the employee is 
compensated on the basis of time rate or piece work performance, 
although it does not apply to individuals, such as fishermen, working 
on a profit-sharing basis. 

In order to maintain fair differentials between employees an equit- 
able adjustment in rates of pay shall be made in cases of employees 
who on June 15, 1933 received more than the minimum rates of pay 
then prevailing; but in no case as a part of such readjustment shall 
hourly rates be reduced. 

The hour and wage provisions contained in the code are intended 
to cover the general conditions of employment in the entire industry. 
It is recognized that in some divisions of the industry it will be neces- 
sary to revise these provisions to make them applicable to these re- 
spective divisions. For these reasons the code requires that each 
Executive Committee established pursuant to the terms of the code 
shall, on or before June 1, 1934, prepare and file with the Adminis- 
trator a schedule of hours, wages, and other conditions of employ- 
ment applicable to its particular division, and upon approval by 
you said provisions shall thereafter govern that particular division of 
the industry, anything to the contrary in the code submitted herewith 
notwithstanding. 

Because statistics on hours of labor, rates of pay, and other work- 
ing conditions of those emploj^ed in the entire fishing industry are 
not available from any Governmental or private source, no estimate 
can be made as to the extent the hour and wage provisions will in- 
crease income and spread employment. However it is believed that 
when the code is in operation there will be substantial improvement 
in the conduct of the industry, toward the end that customary market- 
ing channels will be opened to promote a freer flow of fishery prod- 
ucts from the fishermen to the consumer, which will react favorably 
in increasing employment at the level of wages provided for in the 
code. 

By the terms of the code no individual under sixteen years of age 
shall be employed in the industry. 

OTHER CODE PROVISIONS 

The unfair trade practices relate to false advertising, misbranding, 
destructive price-cutting, secret rebates, combination sales, com- 
mercial bribery, racketeering, false measures, free deals, reversal of 



332 

communication charges, dishonest account of sales, returns and al- 
lowances for containers, purchases from producers, false statement 
of accounts, and unearned service payments. Elimination of the 
above unfair trade practices will, it is believed, hasten the economic 
recovery of the industry and place it on a more favorable competitive 
basis with other food industries. 

The code also provides for the keeping of books and records by 
members of the industry under certain conditions and for certain 
specified purposes to effectuate the policy of the Act. 

FINDINGS 

The Administrator finds that: 

(a) The Code is well designed to promote the policies and purposes 
of Title I of the National Industrial Recovery Act, including re- 
moval 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 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, fishery, and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and otherwise rehabilitating industry. 

(b) The Code as approved complies in all respects with the perti- 
nent provisions of said Title I of the Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the National Fish- 
eries Association is an industrial group truly representative of the 
aforesaid industry ; and that said association imposes no inequitable 
restrictions on admission to membership therein. In fact, unlike 
most industries, the applicant association has opened its membership 
to organized labor within the industry for the purpose of uniting the 
fishery industry into one strong group for mutual benefit to all. 

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

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

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

(f) The industry has been most cooperative in drafting this code, 
and to my knowledge this is the first time in history it lias united as 
a whole i'or one common purpose. From evidence and testimony ob- 
tained from many sources within and without the industry and at 
the public liearing, and from the recommendations and reports of the 
various advisory boards and the De))uty Administrator handling the 
code, I believe that the code as it is now submitted will be a forward 



333 

step in effectuating the recovery of the fishery industry, which is 
based on one of our great natural resources. 

For the above reasons this code is liereby recommended for 
approval. 

Respectfully, 

Hugh S. Johnson", 

A dtninis trator, 
February 8, 1934. 

42462° 376-135 34 2 



XjOde of fair competition foe the fishery 

industry 

Articjle 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 fishery industry, and shall be the standards 
of fair competition for such industry, and shall be binding upon 
every member thereof. 

Article II — Definitions 

Section 1. As used in this code: 

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

(b) The term "Act" and the term "Administrator" mean respec- 
tively Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery or his duly authorized agent. 

(c) The term " member of the industry " includes any individual, 
partnership, association, corporation or other form of enterprise 
engaged in the industry, either as an employer or on its or his own 
behalf. 

(d) The term " fishery industry " or " industry " includes: 
The catching or taking from the water — 

The cultivating — 

The farming and other artificial propagation (except the propaga- 
tion of goldfish and tropical fish) — 

The processing — 

The wholesaling, if, but only if the handler or distributor has also 
done the processing — 

of fish and all other commercial products of aquatic life in both salt 
and fresh water, as carried on in the several States, the District of 
Columbia, the several Territories of the United States, the insular 
possessions or other places under the jurisdiction of the United 
States; or on United States vessels, wherever the actual taking or 
processing of such products of the industry by said vessels takes 
place. The term " fishery industry " or " industry " includes also 
commission merchants trading in products of the industry. 

(e) The term "processing" means the packing in ice of, filleting 
of, cutting of, freezing of, salting of, smoking of, drying of, canning 
of, extracting oil from, manufacturing meal or fertilizer from, 
products of the industry; or otherwise manipulating products of the 
industry: Provided However, that the term "processing" shall not 
include tne refining of oils from products of the industry ; the manu- 
facture of mixed feeds or mixed fertilizer from products of the 
industry; or the manufacture of products obtained from shells, fish 
scales, sponges, sounds, skins, hides, bones, aquatic plants, ambergris, 
cuttlefish bone, and whalebone. 

(834) 



335 

(f) The terms "wholesale" and "wholesaling" mean the han- 
dling or distributing, except by a carrier for hire, of products of 
the industry to distributors or to retail outlets, including institu- 
tions, hotels, restaurants, and other public eating places, whether or 
not such retail outlets are actually or legally controlled by tho 
member of the industry performing such handling or distributing. 

(g) The term " emploj-ee " means any individual engaged in the 
industry, however compensated, except a member of the industry. 

(h) The term " employer " means any member of the industry by 
whom any emploj^ee is compensated or employed. 

(i) The term "books and records" includes any books, records, 
accounts, contracts, documents, memoranda, papers, correspondence 
or other written data pertaining to the business of any member of 
the industry. 

(j) The term "United States vessels" includes all vessels regis- 
tered, enrolled and licensed, licensed, or recorded in the offices of 
collectors of customs of the United States; and all vessels engaged 
in the fishery industry and operated from ports of the United States, 
its insular possessions or other places under its jurisdiction. 

(k) The term " National Fisheries Association " means the fed- 
eration, national in scope, bearing that name and consisting of 
various regional, functional, and commodity associations in the 
industry. 

(1) The term "code", if used without further qualifications, 
means this instrument, which shall constitute the national code or 
fair competition for the entire fishery industry. 

(m) The term "divisional code" means any code of fair com- 
petition complying with the provisions set out in Article VIII, Title 
C, Section 1, hereof. 

(n) The terms " watching crews " or " watchmen " means em- 
ployees whose principal function is watching and guarding the 
property of a member of the industry. 

(o) The term " outside salesmen " means salesmen who perform 
primarily selling functions and who do not deliver. 

(p) The term " National Code Authority " means the body created 
in Article VIII, Title A, hereof. 

(q) The term " Executive Committee " means the body or bodies 
provided for in Article VIII, Title C, Section 1, paragraph (e), 
hereof. 

(r) The term "fisherman" means any individual who is actually 
engaged by his own labor in the catching or taking of products of 
the industry. 

(s) The term "lay" means an arrangement controlling the divi- 
sion of proceeds of a fishing enterprise. 

(t) The term " share " means the portion of the proceeds of a 
fishing enterprise received by any individual participating in tho 
enterprise under a lay. 

(u) Pronouns of the masculine gender shall include the feminine 
also. 

(v) The term " national " is synonymous with basic, and shall not 
be construed to confine the scope of this code within limits not 
otherwise intended. 



836 

Article III — ^Hours of Labor 

Section 1. No clerical, accounting, or other office employee shall 
be permitted to work in excess of forty hours in any week. 

Section 2. No other employee shall be permitted to work in excess 
of ninety hours in any two consecutive weeks, with the following 
exceptions : 

(a) Employees engaged in the operation of boats or vessels in 
going to cultivate, catch, or load products of the industry; in the 
cultivating, catching, or loading into the boat or vessel of such prod- 
ucts ; and in the returning again to shore, including the unloading or 
packing for shipment of such products where unloading or packing 
for shipment is performed by the crew of the boat or vessel as an 
integral part of the " trip operation " as contrasted with any typical 
" shore operation." 

(b) Employees engaged in patrolling products or property of the 
industry and in going to or returning therefrom. 

(c) Employees engaged in the driving, placement, maintenance, or 
repair of traps, nets, or other fishing appliances, including those en- 
gaged in the operation of vessels, pile drivers, or other marine equip- 
ment assisting in the performance of such work ; and in going to or 
returning therefrom. 

(d) Executive, supervisory, technical, and administrative em- 
ployees, provided that they receive over $35.00 per week ; and outside 
salesmen, and car attendants for shipments of live fish by railway 
transportation or otherwise from the inception of the transportation 
to and including the return of the car or other vehicle of transpor- 
tation so attended to the point of origin. 

(e) Watching crews and watchmen; Provided However, that they 
shall receive the minimum wage hereinafter set forth according to 
the number of hours actually worked. 

(f) Stationary engineers and firemen, chauffeurs, and delivery- 
men ; Provided However, that they shall not work more than forty- 
eight hours in any week. 

(g) Employees engaged in emergency maintenance and repair 
work; Provided However, that in any such case at least time and 
one-third shall be paid such employees for hours of work in excess 
of the maximum hours herein established for them respectively. 

(h) Employees engaged in any seasonal or emergency situation 
which may arise whereby the product of the employer may be spoiled 
or destroyed while in a perishable condition, when additional workers 
of the necessary qualifications are not available to perform the opera- 
tions required. In such cases the employer shall be empowered to 
process such pi'oduct into a non-perishable condition. Employees 
engaged in this seasonal or emergency work shall be paid time and 
one-third for hours worked in excess of the maximum herein estab- 
lished for them respectively. 

Section 3. Any divisional code may, with the approval of the 
President, prescribe certain periods throughout the year of exces- 
sive demand, such as Lent or the Jewish Holidays; of excessive sur- 
plus; or of other exijj(!ncy peculiar to the division of the industry 
covered by said divisional code, in which periods the schedules of 



837 

hours of labor for employees in the particular division of the indus- 
try in question may differ from those herein set forth. 

Section 4. No employer in the industry shall knowingly permit 
any employee to work for a total number of hours in excess of the 
number of hours above prescribed for him, whether employed by 
one or more employers. 

Abticle IV — Wages 

Section 1. No clerical, accounting, or other office employee shall 
be paid at less than the rate of $16.00 per week, except that office 
boys may be employed at a rate of not less than $14.00 per week. 

Section 2. No other employee shall be paid at less than the fol- 
lowing rates of wages : 

(a) $16.00 per week for those who work by the week or 360 per 
hour for those who work by the hour, when the employment is 
in a city of 100,000 population or more in the North or in the trad- 
ing area of any such city. 

(b) $16.00 per week for those who work by the week or 330 per 
hour for those who work by the hour, when the employment is in 
a city or town of less than 100,000 population in the North. 

(c) $14.00 per week for those who work by the week or 310 per 
hour for those who work by the hour, when the employment is in 
a city of 100,000 or more population in the South, or in the trading 
area of any such city. 

(d) $13.00 per week for those who work by the week or 290 per 
hour for those who work by the hour, when the employment is in a 
city or town of less than 100,000 population in the South. 

(e) Population for the purposes of this code shall be based on 
the latest Federal census. 

(f) The term " South " shall consist, for the purposes of this 
code, of the States of Maryland, Virginia, West Virginia, North 
Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, 
Louisiana, Texas, Kentucky, Tennessee, Arkansas, Oklahoma, the 
District of Columbia, the Territories of the United States excepting 
the Territory of Alaska, and the insular possessions or other places 
under the jurisdiction of the United States. All other States of 
the United States, and the Territory of Alaska, shall constitute the 
" North " for the purposes of this code ; Provided However, that in 
so far as concerns wholesaling the term " North " shall also include 
the State of Maryland and the District of Columbia. 

(g) The above prescribed rates of wages shall not apply to in- 
dividuals working on a " lay " or other profit-sharing basis. 

Section 3. In order to maintain fair differentials between em- 
ployees, an equitable readjustment in rates of pay shall be made 
in cases of employees who on June 15, 1933 received more than the 
minimum rates of pay then prevailing; but in no case as a part of 
such readjustment shall hourly rates be reduced. 

Section 4. This code guarantees a minimum rate of pay, regard- 
less of whether the employee is compensated on the basis of time 
rate or piece work performance. This section shall not apply to 
individuals working on a " lay " or other profit-sharing basis. 



338 
Article V — General Labor Provisions 

Section 1. No individual under sixteen years of age shall be em- 
ployed in the industry. 

Section 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. 

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

Section 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. 

Section 5. The provisions of this code .shall not supersede any 
law or ordinance which imposes on employers more stringent re- 
quirements as to age of employees, wages, hours of work, health, fire, 
or other working conditions, than are imposed by the terms of this 
code. 

Section 6. Employers shall not reclassify employees or duties of 
occupations performed by employees so as to defeat the purposes of 
this code. 

Section 7. Every employer in the industry shall cause the provi- 
sions of this code, and/or of the divisional code governing his divi- 
sion of the industry, having to do with hours of labor, rates of pay, 
and other conditions of employment, to be posted in a prominent 
place upon his business premises in such a manner that said provi- 
sions may be readily seen and read by all employees. 

Section 8. Each employer shall make a monthly report to the 
Executive Committee governing the division of the industry in which 
he is engaged, stating the number of hours worked in excess of the 
maximum under the provisions of Article III, Section 2, paragraphs 
(g) and (h), hereof. 

Section 9. Each Executive Committee shall, on or before June 
1, 1934, prepare and file with the Administrator a schedule of the 
hours of labor, rates of pay, and other conditions of employment 
applicable to its particular division of the industry, and, upon 
approval by the President, said provisions shall thereafter govern 
that particular division of the industry, anything to the contrary in 
this code notwithstanding. 

Section 10. The terms of each " lay " or other profit-sharing agree- 
ment shall be reduced to writing and subscribed by all parties to said 
agreement, and shall be posted in a prominent place accessible to the 
parties thereto. All records of the primary payment for the catch 
and of expenses shared jointly under any such agreement, including 
deductions from the total value of the catch or gross stock, shall be 
kept available and in the hands of some party to said agreement, 
who shall be mutually agreed upon, and such records shall be exhib- 
ited by said party, upon request, to any other party to said agreement. 



339 

Section 11. Every employer governed by this code shall, in the 
conduct of his operations, lend his cooperation and support to the 
program of his division for the reduction of accidents ; and cases of 
wilful disregard of the life and health of employees shall constitute 
a violation of this code. 

Article VI — Unfair Methods of Competition 

Section 1. The following practices constitute unfair methods of 
competition and it shall be a violation of this code for any member 
of the industry : 

(a) False Advertising. — To publish advertising (whether printed, 
radio, display or of anj'^ other nature), which is false or misleading 
in any material particular, to misrepresent any product of the indus- 
try (including, but without limitation, its use, trade-mark, grade, 
quality, quantity, origin, size, substance, character, nature, material 
content or preparation) or credit terms, values, policies, services, 
prices, or the nature or form of the business of a member of the 
industry. 

(b) Mistranding . — To brand or mark or pack any product of the 
industry in any manner which is intended to or does deceive purchas- 
ers with respect to the brand, grade, quality, quantity, origin, size, 
substance, character, nature, material content or preparation of such 
product. 

(c) Destructive Price Cutting. — To engage in destructive price 
cutting. 

(d) Secret Rebates. — To secretly pay or allow rebates, refunds, 
credits, or unearned discounts, whether in the form of money or other- 
wise; or to secretly extend to certain purchasers special services or 
privileges, not extended to all purchasers under like terms and 
conditions. 

(e) Unearned Service Payments. — To pay a trade buyer for a 
special advertising or other distribution service by such buyer (1) 
except in pursuance of a written contract made in good faith and 
explicitly defining the service to be rendered and the payment for it ; 
and (2) unless such service is rendered and such payment is reason- 
able and not excessive in amount; and (3) unless such contract is 
separate and distinct from any sales contract, and such payment is 
separate and distinct from any sales price and is not designed or used 
to reduce a sales price; and (4) unless such payment is equally avail- 
able for the same service to all competitive trade buyers in the same 
competitive market; and (5) unless a copy of each such contract is 
retained on file for a period of one year. In order to investigate 
alleged violations of this paragraph, the Administrator may require 
a member of the industry to report such contracts made by him 
and/or to produce a copy thereof for inspection. 

(f ) Cornbination Sales. — To require that the purchase of any goods 
be prerequisite to the purchase of any other goods. 

(g) Commercial Brihery. — To give, permit to be given, or di- 
rectly 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 



340 

knowledge of such employer, principal, or party. This paragraph 
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. 

(h) Violence^ Intimidation or Unlawful Coercion. — (1) Any use 
of violence to person or property, intimidation or unlawful coercion, 
by a member of the industry against a member of the industry. 
(2) Any threat by a member of the industry to use such violence, 
intimidation or unlawful coercion. (3) Any conspiracy among mem- 
bers of the industry, or among members of the industry and others, 
to use or threaten to use such violence, intimidation or unlawful 
coercion. (4) Any combining or cooperating by a member of the 
industry with any one who is using or threatening to use such 
violence, intimidation or coercion. 

(i) False Measures. — To use slack weights or slack measures, or 
overweights or overmeasures, or to fail to observe any standard of 
measure or of weight imposed by his divisional code. 

(j) Free Deals. — To grant free deals, whether in the form of 
money, money's worth, service, or the practice of acceptance of 
collect communication charges, or otherwise. 

(k) Reversal of Communication Charges. — To engage in the prac- 
tice of sending or accepting reversed telephone or telegraph or radio 
message charges in the obtaining of quotations or the closing of 
transactions, where each charge is not specifically authorized in 
advance by the addressee named in the message, and where such 
charge is not afterwards assumed and paid by the sender. 

(1) Dishonest Account of Sales. — To render dishonest account 
concerning sales of products of the industry. 

(m) Returns and Allowances for Containers. — To grant returns 
or allowances in money or money's worth for packages or containers 
to be returned, and to purchase packages or containers from cus- 
tomers, if the return or allowance in question or the purchase price 
in question constitutes more in amount than the actual value of 
the packages or containers in question, or if the packages or con- 
tainers for which the allowance has been made or the purchase price 
has been fixed are not actually returned, or delivered. 

(n) Purchases. — To refuse without lawful reason to accept and 
pay for, at the price agreed upon, fresh fish and/or fresh shellfish 
purchased from fishing vessels, officers of fishing vessels, crews of 
fishing vessels, or owners and/or operators of fishing equipment. 

(o) False Statements. — To render false invoices, statements of 
account, orders, or acknowledgments; and to falsely report sales, 
whether or not the accounting concerning such sales is accurate. 

Ajrticle VII — Informaiion, Books and Records 

Section 1. Each member of the industry shall, from time to time, 
furnish the Administrator and/or the Executive Committee for his 
division of the industry such information, on and in accordance with 
forms of reports to be supplied, as may be deemed necessary for the 
purposes of (a) assisting in the furtherance of the powers and duties 
of the Administrator and/or said Executive Committee with respect 
to this code and the several divisional codes and/or (b) enabling the 
Administrator and/or saJd Executive Committee to ascertain and de- 



341 

termine the extent to which the policy of the Act and the purposes 
of this code and the several divisional codes are being effectuated. 

Section 2. Upon complaint against any member of the industry of 
violation of this code or of any divisional code, the member com- 
plained against shall permit the Administrator to examine his books 
and records during the usual hours of business and upon reasonable 
notice. Such examination shall be limited to the subject matter of 
the complaint and to those books and records appurtenant thereto. 

Section 3. The members of the industry shall severally keep books 
and records which will clearly reflect all transactions of their respec- 
tive businesses and the financial condition thereof. In particular 
such books and records shall set forth all of tlie elements entering 
into the cost of production, processing and distribution, to the end 
that accurate cost records are available. This section shall not be 
construed or applied to require the keeping of such books and records 
by a fisherman. 

Section 4. All information furnished the Administrator, any Gov- 
ernment agency, and the several Executive Committees, shall remain 
confidential, except upon lawful demand of the President, either 
House of Congress, or any committee thereof, or by any court of 
competent jurisdiction. The information, however, may be used in 
the form of general statistical studies or data, without individual 
identification. 

Article VIII — Administration 

TITLE A. NATIONAL CODE AUTHORITY 

Section 1. The National Code Authority is hereby established, 
consisting of eleven members who shall be selected each year by the 
National Fisheries Association in such manner as to be truly repre- 
sentative of the industry as a whole. For the year beginning with 
the effective date of this code, the National Code Authority shall 
consist of the eleven members dul}?^ elected for that purpose by the 
industry and by the National Fisheries Association in convention 
assembled on October 19, 1033, in Washington, D.C. For the suc- 
ceeding years members of the National Code Authority shall be sub- 
ject to the disapproval of the Administrator. 

In addition to membership as above provided, there ma}^ be three 
members to be appointed annually by the Administrator, to serve 
for a term of twelve months from the date of appointment without 
vote and without expense to the industr}'. 

Section 2. Anj'^ vacancies occurring in the membership of the Na- 
tional Code Authority, except members appointed by the Adminis- 
trator, shall be filled for the unexpired term hy vote of the remaining 
members of the National Code Authority, subject to the disapproval 
of the Administrator. 

Section 3. The National Code Authority shall have as its chair- 
man one of its members duly elected by said National Code 
Authority. 

Section 4. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the National Code 
Authority shall (a) impose no inequitable restrictions on member- 
ship, and (b) submit to the Administrator true copies of its articles 



342 

of association, by-laws, regulations, and any amendments 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. 

Section 5. In order that the National 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 pre- 
scribe such hearings as he deems proper; and thereafter if he shall 
find that the National Code Authority is not truly representative 
or does not in other respects comply with the provisions of the 
Act, he may require an appropriate modification m the method of 
selection of the National Code Authority. 

Section 6. Nothing contained in this code shall constitute the 
members of the National Code Authority partners for any purpose. 
Nor shall any member of the National Code Authority be liable in 
any manner to anyone for any act of any other member, officer, 
agent, or employee of the National Code Authority. Nor shall any 
member of the National Code Authority, exercising reasonable 
diligence in the conduct of his duties hereunder, be liable to anyone 
for any action or omission to act under this code, except for his own 
wilful misfeasance or nonfeasance. 

TITLE B. POWERS AND DUTIES OF THE NATIONAL CODE AUTHORITY 

Section 1. It shall be the duty of the National Code Authority: 

(a) To assist in the organization of commodity, regional, func- 
tional, or other trade groups or associations within the industry in 
order that divisional codes, and agreements under Section 4 (a) of 
the Act, may be formulated. 

(b) To act as a mediator in disputes between or among groups or 
associations, or within a group or association, upon request of any 
interested group or association. 

(c) To assist the Administrator and/or the several Executive 
Committees in the collection of statistical or other data as required 
of members of the industry under Article VII hereof. 

(d) To assemble reports on the investigations of " lay " or profit- 
sharing systems made by Executive Committees in accordance with 
Title D. Section 3, paragraph (a), of this Article, and on or before 
Sept. 1, 1934, report with conclusions and recommendations to the 
Administrator. 

(e) To make recommendations^, upon affirmative vote of at least 
six of its members, to the Administrator with respect to changes or 
amendments in this code or any divisional code, or with respect to 
problems of visitation or enforcement thereof; Provided However, 
that the National Code Authority shall give seven days' notice in 
writing to the parties c(mcerned of any recommendation proposed by 
the National Code Authority for filing with the Administrator, and 
similar notice of any other action or request proposed by the National 
Code Authority to be taken or made which shall require approval by 
the Administrator. Each Executive Committee shall have right, as 
a party in interest, to be heard, in opposition to any such recom- 
mendation or request or action, before the National Code Authority 
at a hearing held by the National Code Authority before any such 



343 

recommendation or request or action shall have been referred by said 
National Code Authority to any Government agency. Each Execu- 
tive Committee shall also have said right to be heard before any 
Government agency or authority to which such recommendation or 
request or action may be referred by said National Code Authoritj^ 
However, nothing herein contained shall be deemed to be in deroga- 
tion of the right of any such agency or authority to govern its own 
procedure. 

(f) To encourage the distribution of strictly high quality prod- 
ucts of the industry and otherwise to protect the consumer against 
inferior merchandise, the National Code Authority and the several 
Executive Committees shall investigate the feasibility and wisdom 
of establishing a proper system and agency for the grading of prod- 
ucts of the industry for the fourfold purpose of benefiting the fisher- 
men, stabilizing the industry, preventing destructive price-cutting, 
and eliminating from the market not only immature and undersized 
fish and shellfish, but also all types of inferior and unwholesome 
products of the industry. The several Executive Committees shall 
formulate their recommendations resulting from such investigations, 
including preliminary specifications for grading where grading has 
been found feasible and wise, and on or before Aug. 1, 1934, shall 
make a preliminary report of the same to the National Code Author- 
ity, which shall correlate the said recommendations in suitable form 
and, within a further period of thirty days, shall make recommen- 
dations accordingly to the Administrator. 

(g) To meet with the various Government conservation agencies 
for the purpose of formulating a plan for the conservation of fishery 
resources and their sustained production, and to make recommenda- 
tions to the Administrator within thirty days after such meeting 
bearing upon the minimum trade sizes of commercially important 
species of fish and shellfish, and upon other pertinent matters. Said 
meeting shall be held within six months after the effective date of 
this code. 

(h) The National Code Authority shall have of its own right no 
powers other than those specifically granted to it by the provisions 
of this code and of the various divisional codes, or by the Adminis- 
trator. 

TITLE C. DIVISIONAL CODES 

Section 1. To effectuate the necessary local administration of the 
provisions hereof, any division of the industry may prepare, and, 
with the approval of the President, adopt a divisional code. Each 
divisional code shall, subject to the approval of the President: 

(a) Embody the provisions of this code, with such exceptions as 
may be specifically enumerated. 

(b) Embody provisions where applicable to conserve the fishery 
resources and sustain production in its division of the industry. 

(c) Contain such other terms and provisions with respect to its 
division of the industry as may be required to effectuate the policy of 
the Act. 

(d) Contain such other terms and provisions, as may be consid- 
ered wise by said division and as shall conform with the policy of 
the Act, with respect to uniform cost accounting, regulation of 



344 

price systems, the control of production and/or distribution, and/or 
the obtaining of an agreement under the terms of Section 4 (a) of 
the Act. Provisions in divisional codes with respect to uniform 
cost accounting shall allow due latitude for the obtaining of informa- 
tion on a comparable basis. 

(e) Establish an Executive Committee or Executive Committees 
for the purpose of administering said divisional code. The Admin- 
istrator may appoint one or more Administration members to each 
Executive Committee to serve without vote or expense to the 
industry. 

TITLE D. POWERS AND DUTIES OF EXECUTIVE COMMITTEES OF DIVISIONAL 

CODES 

Section 1. It shall be the duty of each Executive Committee, sub- 
ject to rules and regulations established by the Administrator, to pro- 
vide for compliance of the industry with this code and its divisional 
code, and, to investigate specific alleged violations within its juris- 
diction of said codes upon complaint of any member of the industry, 
or upon information coming to the knowledge of said Executive 
Committee from any reliable source. Should it appear to said Execu- 
tive Committee that a violation of the i^rovisions of this code or of 
its divisional code has occurred, it shall give the accused member 
an opportunity for a hearing. If as a result of this hearing and/or 
any other information available, said Executive Committee is con- 
vinced that a violation of this code or of its divisional code has 
occurred, it shall so notify the member charged, and after giving 
notice to the National Code Authority, may present the facts to the 
Administrator for such action as he sees fit. 

Section 2. Any Executive Committee may recommend amend- 
ments to this code or to any divisional code, and may report alleged 
violations of this code or of any divisional code to the National Code 
Authority, or to the Administrator; Provided However, that, if in 
the opinion of the National Code Authority, any action proposed 
to be taken by the Executive Committee of any divisional code shall 
involve the i-ights of members of the industry subject to another 
divisional code or other divisional codes, the National Code Au- 
thority shall hold a hearing among those involved, for the purpose 
of attempting a settlement of the question at issue before it shall be 
referred to the Administrator; and. Provided Further, that in each 
case where an Executive Committee shall seek to secure action from 
the Administrator, the National Code Authority sluill have full right 
as a party in interest to appear before and be heard by any author- 
ity or agency to which the petition or motion of such Executive Com- 
mittee uuiy be refei-red in any proceeding relating to said petition or 
motion; and. Provided Furtlier, tliat any Executive Committee may, 
at all times, anything to the contrary herein notwithstanding, after 
filing seven days' notice with the National Code Authorit}', proceed 
directly to petition the Administrator. However, nothing herein 
contained shall be deemed to be in derogation of the right of any 
sucl) agency or authority to govern its own pi-ocedure. 

Section 15. It shall be the further duty of each Executive 
Committee: 



345 

(a) To proceed with all reasonable speed to compile statistics and 
other data upon the operation of the various " lay ", profit-sharing, 
or other cooperative systems of production peculiar to their respec- 
tive divisions of the industry, and on or before June 1, 1934, to for- 
ward a preliminary report containing their conclusions thereon to 
the National Code Authority. 

(b) To proceed with all reasonable speed to carry out their part 
of the duties set forth in Article VIII, Title B, Section 1, paragraph 
(f), hereof. 

(c) To obtain from members of the industry such information and 
reports as are required for the administration of this code and its 
divisional code; and. Provided However, that in no event shall an 
Executive Committee examine the books and records of a member of 
the industry, except on written consent of said member. 

(d) To provide ways and means for submission by members of 
the industry 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 Adminis- 
trator may designate ; Provided However, that nothing in this code 
or in any divisional code shall relieve any member of the industry 
of any existing obligation to furnish reports to any Government 
agency. 

(e) To prepare and file a schedule of hours of labor, rates of pay, 
and other conditions of employment as provided for in Article V, 
Section 9, hereof. 

Section 4. For the purpose of determining a violation of Article 
VI, Section 1, paragraph (c), hereof (destructive price-cutting), 
upon receipt of information from a reliable source regarding an 
alleged specific violation by a member of the industry, the Executive 
Committee for his division of the industry shall give due notice and 
an opportunity for a hearing to the member whose action is under 
suspicion. If after such investigation said Executive Committee 
shall determine that destructive price-cutting has occurred, and if 
the practice continues thereafter, said Executive Committee shall 
advise the Administrator, who, upon review, shall take such action 
as he sees fit. 

Section 5. Any of the several Executive Committees of the vari- 
ous divisions of the industry may inform the Administrator of 
facts concerning the importation into the United States of products 
competitive with products of the industry in substantial quantities 
or increasing ratio to domestic production and on such terms or 
Imder such conditions as to render ineffective or seriously to endanger 
the maintenance of this code or any divisional code, and may in 
such case urge proper action for the purpose of correcting such 
condition. 

TITLE E. EXPENSES 

Section 1. For the purpose of meeting the expense of administer- 
ing this code and the several divisional codes, every member of the 
industry, subject to the jurisdiction of this code and/or any divisional 
code, shall pay as his proportionate part of the total annually re- 
quired, a sum of money equal to one-tenth of one percent of h-ia 



346 

total annual sales of products of the industry as determined by hia 
sales for the preceding business year, and including inter-company 
or inter-departmental sales from those subsidiaries or departments 
engaged in production to those engaged in distribution. Payments 
shall be made in equal monthly installments on the first day of each 
month commencing with the first day of the month following the 
approval of this code by the President, and shall be collected in 
the following manner : 

(a) Each Executive Committee shall collect the above described 
payments for its division of the industry ; and for that purpose may 
retain a bonded collection agency. 

(b) Any member of the industry who in any year is subject to the 
executive authority in more than one division of the industry be- 
cause of the fact that he is engaged in business in more than one 
division of the industry or for any other reason, shall in paying the 
total amount for which he is obligated hereunder, allocate com- 
ponent parts of his total payment for that year among the divisions 
of the industry to the authority of which he is so subject. Such 
allocation shall be equitably made, and in such manner that the 
payment to any division will reflect his sales as they are appor- 
tioned to that division. 

(c) The Executive Comnaittee of each division of the industry 
shall at the end of each month of the calendar year forward to the 
National Fisheries Association for use by the National Code Au- 
thority 25 per cent of the total payments received by it during that 
month, and the remaining 76 per cent of said payments shall be 
retained by said Executive Committee for its own use in administer- 
ing this code and the divisional code of the division of the industry 
over which said Executive Committee has control. The residue of 
said total payments remaining in the hands of said Executive Com- 
mittee or of the National Code Authority may upon the termination 
of any year, and shall upon the termination of this code, be dis- 
tributed pro rata to the contributors in proportion to the amounts 
originally contributed by them respectively. All individuals charged 
with the collection or the retention or disbursement of any of the 
money above referred to shall be adequately bonded. The payments 
provided for in this Title are for the sole purpose of administering 
this code and the various divisional codes, including the liquidation 
of such expenses as shall have been incurred in furtliering the prep- 
aration, adoption, and approval of this code and any divisional 
code, and shall not be used for any other purposes. 

(d) Upon his own motion, or upon petition of the National Code 
Authority or any Executive Committee^ the Administrator, after 
such notice and hearing as he shall prescribe, may, from time to time 
on the basis of experience, revise any of the foregoing provisions 
relating to the expense of code administration. 

TITLE F. PROVISIONS FOR TEMPORARY ADMINISTRATION 

Section 1. Any trade group or association within any division of 
the industry, which imposes no inequitable restrictions on admission 
to membership and is truly representative of said division, may, pend- 
ing the approval of a code of fair competition for said division 



1 



347 

select, with the approval of the Administrator, a Temporary Execu- 
tive Committee for the purpose of administering this code and such 
Temporary Executive Committee shall have, pending the approval 
of said divisional code, the powers and duties herein contemplated 
to be granted to and required of Executive Committees of divisional 
codes approved by the President. 

TITLE G. INTERPRETATION 

Section 1. The Administrator ma}^ from time to time, after con- 
sultation with the National Code Authority, issue such administra- 
tive interpretations of the various provisions of this code as are 
necessary to effectuate its purposes, and such interpretations forth- 
with shall become operative as part of this code. 

TITLE H. SUSPENSION AND REVIEW 

Section 1. If the Administrator shall determine that any action 
of the National Code Authority, or of any Executive Committee, or 
of any agency of either of them, is unfair or unjust or contrary to 
the public interest, the Administrator may require that such action 
be suspended for a period not to exceed thirty days, in order to afford 
an opportunity for investigation of the merits of such action and 
further consideration by such authority, committee, or agency pend- 
ing final action, which shall be taken only upon appr-oval by the 
Administrator. 

Article IX — Modification 

Section 1. This code and all the provisions thereof are expressly 
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, apjoroval, license, rule, or regulation, issued under 
the Act; and specifically, but without limitation, to the riglit of the 
President to cancel or modify his approval of this code or any 
conditions imposed by him upon approval thereof. 

Section 2. It is contemplated that from time to time, after such 
notice and hearing as the Administrator shall specify, supplementary 
or amendatory provisions to this code will be submitted for the ap- 
proval of the President, to prevent unfair competition and to effec- 
tuate the other purposes and policies of the Act; and, with the 
approval of the President, the provisions of this code may be can- 
celed or modified as changes in circumstances or experience may indi- 
cate ; Provided However, that no such supplementary or amendatory 
provisions shall be submitted to the President until such divisions of 
the industry as are affected thereby shall have been afforded an 
adequate opportunity to be heard. 

Section 3. Any industry or brancli of an industry related to the 
fishery industry but not expressly included in the industry as defined 
in Article II, Section 1, paragraph (d), hereof, 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. 

Section 4. Within a period of 30 days after the effective date of 
this code any division of the industry expressly included within the 



348 

industry as defined in Article II, Section 1, paraoraph (d), hereof, 
may petition the Administrator for exclusion from the terms of this 
code, and upon the grant of the prayer of the said petition by the 
Administrator said division shall cease to be bound by the terms of 
this code. 

Article X — Monopolies 

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

Article XI — Effective Date 

Section 1. This code shall become effective on the second Monday 
following its approval by the President. 



Approved Code No. 308. 
Begistry No. 117-36. 



O 



Approved Code No. 309 
CODE OF FAIR COMPETITION 

FOR THE 

SOLID BRAIDED CORD INDUSTRY 

As Approved on February 26, 1934 



ORDER 



Code of Fair Competition for the Solid Braided Cord 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 Solid Braided Cord Industry, and hear- 
ings having been duly held thereon and the annexed report on said 
Code, containing findings Avith respect thereto, having been made 
and directed to the President: 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
'A. D. Whiteside, 

D iv is ion A dminis t rat or. 

Washington, D.C, 

Fehruary 26, 1934. 

42459° 37C-13S 34 (349) 



EEPORT TO THE PKESIDENT 



The President, 

The White House. 



introduction- 



Sir : This is a report of the Hearing on the Code of Fair Compe- 
tition for the Solid Braided Cord Industry in the United States, 
conducted in Washington, D.C., on Tuesday, October 31, 1933. 

In accordance with the customary procedure, every person who 
filed a request for appearance was freely heard in public, and all 
statutory and regulatory requirements were complied with. 

The Code which is attached was presented by the duly qualified 
and authorized representatives of the Industry, the Solid Braided 
Cord Manufacturers Association, complying with the statutory 
requirements as representing at this time 100 percent of the total 
number of producers and 100 percent of the volume of the industry. 

GENERAL CHARACTERISTICS OF THE INDUSTRY 

The term Solid Braided Cord Industry is used to define manufac- 
ture of all solid braided cotton cord, ^ of an inch in diameter and 
larger, including sash cord, bell cord, braided clothesline and other 
solid braided cords. 

There are fifteen (15) manufacturers in this industry located in 
the states of Massachusetts, Connecticut, Pennsylvania, Maryland, 
Kentucky, North Carolina, Tennessee, Alabama and Georgia. It 
was brought out at the hearing that never in the history of the 
industry have there been more than 2,000 employees employed by 
these companies. 

It Avas shown that the manufacturers in this industry for the past 
several years have been suffering not only from a potential over 
capacity in the industry due to the large amount of equipment set up 
but also from severe competition from Chains, Jute, Manihi, Hemp, 
Sisal, Twisted, Cotton Rope, or other Coarse Fiber Cords or Rope 
and also Twisted and Straight Wire wherever these materials can be 
used in ])lace of solid braided cord. It is felt that because of these 
factors the industry in the last five (5) years has not shown a rea- 
sonable profit on investment. 

For years manufacturei's in this industry have attempted to coop- 
erate for the benefit of their needs, but not until the j^assage of 
the National Industrial Recovery Act were they successful in form- 
ing an association which could definitely set up a Code to aid in 
combating the serious evils which existed. An unusual spirit of 
fairness and a spirit of give and take finally brought about an agree- 
ment among all of the manufacturei-s, thereby aiding in the formu- 
lating of a Code of Fair Comj)etition conforming to the purposes 

(350) 



351 

of the Act. This is shown in the fact that the Association now rep- 
resents 100 percent of the total number of producers in the industry. 

RESUME 

The labor provisions of this Code both as to wages and hours are 
practically identical with those established in the Code for the Cotton 
Textile Industry. This is of benefit in view of the fact that many 
of the manufacturers spin their own yarns before converting them 
into solid braided cord. 

There is a provision calling for the limitation of machine hours 
to two (2) shifts of forty (40) hours each. It is felt by all that 
eighty (80) hours of machine oi>eration will amply take care of the 
production requirements of each manufacturer. 

There is a recommendation calling for the registration of all 
productive machinery and for the requirement by the Administrator 
that prior to the installation of additional productive machinery by 
persons engaged in this industry, except for the replacement of a 
similar number of existing machines, or to bring the operation of 
existing productive machinery into balance, such persons shall secure 
certificates through the Code Authority that such installation will 
be consistent with effectuating the policy of the National Industrial 
Kecovery Act during the period of the emergency. 

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 Avell 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 supervision, 
by eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said 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 aforesaid 
Industry; and that said association imposes no inequitable restric- 
tions on admission to membership therein. 



352 

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

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

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

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

Hugh S. Johnson, 

A dminis trator. 
February 26, 1934. 



CODE OF FAIR COMPETITION FOR THE SOLID BRAIDED 
CORD INDUSTRY 

Article I — Purposes 

To effectuate the policy of Title I of the National Industrial 
Recovery Act, during the period of the emergency, by reducing and 
relieving unemployment, improving the standards of labor, eliminat- 
ing competitive practices, destructive of the interests of the public, 
employees, and employers, relieving the disastrous effect of over- 
capacity, and otherwise rehabilitating the Solid Braided Cord Indus- 
try, and by increasing the consumption of industrial and agricultural 
products by increasing purchasing power, and in other respects, the 
following provisions are established as a Code of Fair Competition 
for the Solid Braided Cord Industry. 

Article II — Definitions 

1. The term " Solid Braided Cord Industry " as used herein means 
the manufacture of all solid braided cotton cord, 5/S'2'' in diameter 
and larger. 

2. Tlie term " employee "' as used herein means 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 
such employee is employed, 

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

5. The term '* productive machinery " means solid braiding 
machines. 

G. The term '" Southern section of the Industry " as used herein 
includes the states of Virginia, Maryland, North Carolina, South 
Carolina, Georgia, Florida, Kentucky, Tennessee, Alabama, Arkan- 
sas, Louisiana, Oklahoma, Texas, and the tenn " Northern section 
of the Industry " includes the remainder of the United States. 

7. The terms " President ", "Act ", and "Administrator " as used 
herein mean respectively the President of the United States, the 
National Industrial Recovery Act, and the Administrator for Indus- 
trial Recovery under said Act. 

Article III — Hours of Labor 

1. No employee — except office and supervisory staff receiving over 
$30.00 per week, and repair-shop crews, engineers, electricians, fire- 
men, cleaners, and shipping, and outside crews — shall work or be 

(355) 



354 

permitted to work in excess of forty (40) hours in any one week or 
eight (8) hours in any twenty-four (24) hour period. 

2. Repair-shop crews, engineers, electricians, firemen, shipping 
and watching crews, shall not work or be permitted to work, except 
in cases of emergency involving breakdowns or the protection of life 
or property, in excess of forty (40) hours a week, with a tolerance 
of ten (10) per cent. Time and one-third shall be paid for all 
time in excess of forty-four (44) hours per week. 

3. Office employees shall not work or be permitted to work in 
excess of forty (40) hours per week averaged over each six (6) 
weeks' period nor over forty-eight (48) hours in any one week. 

4. Outside crews, except in case of emergency, and cleaners shall 
not work or be permitted to work in excess of forty-four (44) hour 
per week. 

Article IV — Wages 

1. No employee — except incapacitated employees, cleaners, and out- 
side emploj^ees — shall be paid less than at the rate of $12.00 per week 
when emploj^ed in the Southern section of the Industry and $13.00 
per week when employed in the Northern section for forty (40) 
hours of labor. 

2. Incapacitated employees, that is, employees whose earning capa- 
city is limited because of age, physical or mental handicap, or other 
infirmity, may be employed on light work at a wage below the mini- 
mum established in the foregoing section, if the employer obtains 
from the state authority, designated by the United States Depart- 
ment of Labor, a certificate authorizing such person's emploj^ment at 
such wages and for such hours as shall be stated in the certificate. 
Such authority shall be guided by the instructions of the United 
States Department of Labor in issuing certificates to such persons. 
Each employer shall file monthly with the Code Authority a list of 
all such persons employed by him, showing the w\ages paid to, and 
the maximum hours of work for such employee. No employer shall 
include within the category of physically incapacitated employees, 
more than five (5) per cent of the total number of his employees. 

3. Outside employees and cleaners shall be paid not less than sev- 
enty-five per cent (75%) of the minimum wage prescribed in Section 
1 of this Article. 

4. The dollar differential existing prior to July 17, 1933, between 
the wage rates paid various classes of employees receiving more than 
the minimum wage prescribed above and up to $30.00 per week, shall 
not be decreased; and in no event shall any employee be paid at a 
rate which would yield a less wage for a work week of forty (40) 
hours than such employee was receiving for the same class o'i work 
for a longer work week prevailing prior to July 17, 1933. 

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

Article V — General Labor Provisions 

1. No person under the age of sixteen (IC) yQiws shall be employed 
in the Industry. 

2. Employees shall liave the right to oi-ganize and bargain collec- 
tively through representatives of their own choosing, and shall be 



355 

free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or in 
self-organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection. 

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

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

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

6. Employers shall not reclassify emplo^'ees or duties of occupa- 
tions performed by employees so as to defeat the purposes of tiie Act. 

7. Each emploj^er shall post in conspicuous places full copies of 
Articles III, IV, and V of this Code. 

Article VI — Machine Hours 

Productive machinery in the Industry shall not be operated for 
more than two (2) shifts of forty (40) hours each per week. 

Article VII — Trade Practices 

1. No member of the Industry shall give any guarantee or other 
form of protection against price decline. 

2. No cord shall be labeled except in conformity with the standard 
weights prescribed by the Code Authorit3\ 

Article VIII — Reports 

1. With a view to keeping the President and the members of this 
Code informed as to the observance of this Code of Fair Competi- 
tion, and as to whether the Solid Braided Cord Industry is taking 
appropriate steps to effectuate the declared policy of the National 
Industrial Recovery Act, each person engaged in the Solid Braided 
Cord Industry shall furnish duly certified reports in substance as 
follows and in such form as may hereafter be provided : 

(a) Wages and hours of Jahor. — (1) Returns every four weeks 
showing actual hours worked by the various occupational groups of 
employees and minimum weekly rates of wage. 

(2) Emergency time. — Reports every four weeks of any emer- 
gency time of employees of any mill. 

(b) Machinery data. — The number of Solid Braiding Machines 
operated each week, the number of shifts, and the total Solid Braid- 
ing Machine hours each week. 

(c) Reports of stocks 07i hand and sales. — Returns every four 
weeks showing the number of pounds shipped on sales during the 
period and the number of pounds on hand at the end of the period. 

^ 2._ The Secretary of the Solid Braided Cord Manufacturers Asso- 
ciation is hereby designated the agency to collect and receive from 



356 

each member of the Solid Braided Cord Industry the reports and 
data required herein and such further reports as may be required by 
the Administrator or the Code Authority, subject to the approval of 
the Administrator. The Secretary shall summarize the foregoing 
data and report to the Administrator or Code Authority and mem- 
bers of the Industry the aggregates based upon the data but shall 
withhold all information as to individual manufacturers, except as 
may be required by the Administrator or by the Code Authority in 
the administration of this Code. 

Article IX — Administration 

1. There shall forthwith be constituted a Code Authority con- 
sisting of: 

(a) Five (5) representatives of the Industry, or such other num- 
ber as may be approved from time to time by the Administrator, to 
be selected as hereinafter set forth. 

(b) Such additional members, without vote, as the Administrator 
may appoint to represent such groups or interests or such govern- 
mental agencies and for such periods as he may designate. 

2. The representatives of the industry shall be selected in the 
following manner : 

Four (4) individuals shall be elected by a majority vote of the 
members of the industry, each member of the industry to have one 
vote. A fifth individual shall be selected by a majority vote of the 
four (4) individuals elected by the members of the industry. 

3. Each trade or industrial association directly or indirectly jjar- 
ticipating in the selection or activities of the Code Authorit}^ shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 
by-laws, regulations, and any amendments when made thereto, to- 
gether with such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

4. In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with the 
provisions of the Act, the Administrator may 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 ap- 
propriate modification in the method of selection of the Code 
Authority. 

5. The Code Authority shall cooperate with the Administrator 
in making investigations as to the functioning and observance of 
any of the provisions of this Code at its own instance or on com- 
plaint of any jjerson affected through a disinterested agency, and 
shall report the results of such investigations to the Administrator. 

(5. The Code Authority may from time to time present to the 
A(hiiiiiisti-ator recommendations based on conditions in the Solid 
liraided Cord Industry as they may develop which will tend to 
effectuate the o])eration of the provisions of this Code and the poli- 
cies of the National Industrial llecovery Act, and in particular along 
the followinj; lines: 



357 

(a) Recommendations (1) for the requirement by the Adminis- 
trator of registration by persons engaged in the Solid Braided Cord 
Industry of their productive machinery, (2) for the requirement by 
the Administrator that prior to the installation of additional pro- 
ductive machinery by persons engaged or engaging in the Solid 
Braided Cord Industry, except for the replacement of a similar 
number of existing solid braiding machines or to bring the operation 
of existing productive machinery into balance, such persons shall 
secure certificates through the Code Authority that such installation 
will be consistent with effectuating the policy of the National Indus- 
trial Recovery Act during the period of the emergency, and (3) for 
the granting or withholding by the Administrator of such certihcates 
if so required by hiui. 

(b) Recommendations for changes in or exemptions from the 
provisions of this Code as to the working hours of machinery which 
Avill tend to preserve the balance of productive activity with con- 
sumption requirements, so that the interests of the Industry and the 
public may be properly served. 

(c) Recommendations for the making of requirements by the Ad- 
ministrator as to practices by persons engaged in the Solid Braided 
Cord Industry as to methods and conditions of trading, the naming 
and reporting of prices wdiich may be appropriate to avoid discrimi- 
nation, to promote the stabilization of the Industry, to prevent and 
eliminate unfair and destructive prices and practices. 

(d) Recommendations for regulating the disposal of distress mer- 
chandise in a way to secure the protection of the owners and to 
promote sound and stable conditions in the Industry. 

(e) Recommendations for dealing with any inequalities that may 
otherwise arise to endanger the stability of the Industry and of 
production and employment. 

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

7. Any member of the Industry who accepts his share of the cost 
and responsibility as well as the benefits of participation in this Code 
may become a member of the Solid Braided Cord Manufacturers 
Association. The dues of the Association shall be levied on such 
basis as may from time to time be fixed by the Executive Committee 
thereof, subject to veto of the Administrator. 

8. Members of the Industry who are complying with the require- 
ments of this Code, and agree in writing, either individually or 
through trade associations, of which they are members, to abide 
by the requirements of the Code and to pay their reasonable share 
of the expense of the administration thereof, shall be entitled to 
vote in the election of the Code Authority on the same basis as a 
member of the Solid Braided Code Manufacturers Association, and 
to the benefits of the activities of the Code Authority. 

9. The expense of administration of this Code shall be borne by 
the signatories thereto and the proportionate share of each signatory 
shall be determined by the Secretary of the Code Authority, subject 
to review of the Administrator, on the basis of volume of business 
and such other factors as may be deemed equitable to he taken into 
consideration. The assessment of each member of the Industry 



358 

shall be maintained in confidence by the Secretary of the Code 
Authority. 

10. 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 effected 
unless the Administrator approves or unless he shall fail to dis- 
approve after 30 days' notice to him of intention to proceed with 
such action in its original or modified form. 

Article X — General 

1. The provisions of this Code shall not be interpreted or applied 
to permit monopolies or monopolistic practices or to eliminate or 
oi^press small enterprises or to discriminate against them. 

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

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

4. 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 modified or eliminated if it 
appears that the public needs are not being served thereby and as 
changes in circumstances or experience may indicate. They shall 
remain in effect unless and until so modified or eliminated or until 
the expiration of the Act. It is contemplated that from time to time 
supplementary provisions of this Code or additional Codes will be 
submitted for the approval of the Administrator to prevent unfair 
comiDetition in price and other unfair and destructive competitive 
practices and to effectuate the other purposes and policies of Title I 
of the National Industrial Recovery Act and which shall not conflict 
with the purposes hereof. 

Article XI — Effective Date 

This Code shall become effective on the second Monday after date 
of approval. 



Approved Code No. 309. 
Registry No. 21»-01. 



O 



Approved Code No. 310 
CODE OF FAIR COMPETITION 

FOR THE 

FRESH WATER PEARL BUTTON 
MANUFACTURING INDUSTRY 

As Approved on February 26, 1934 



ORDER 



Approving Code of Fair Competition for the Fresh AVater Pearl 
Button 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 IG, 1933, for approval of a Code of 
Fair Competition for the Fresh Water Pearl Button Manufacturing 
Industry, and hearings having been duly held thereon and the an- 
nexed report oh 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, 65'J:3-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 Industri<il Recovery. 

Approval Recommended: 
A. D. Whiteside, 

Division Administrator, 

Washington, D.C, 

Felruwry 26, WSlf.. 

42463° 376-137 34 (359) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : The Public Heariog on the Code of Fair Competition for the 
Fresh Water Pearl Button Manufacturing Industry as proposed by 
the National Association of Button Manufacturers, was conducted 
in the Mayflower Hotel, Washington, D.C., on October 11, 1933. 

Every person who recjuested an appearance was fairly heard in 
accordance with regulations of the National Recovery Administra- 
tion. The Code has the approval of the Industrial and Consumers' 
Advisory Boards of the National Recovery Administration and of 
the Legal Division. The Chairman of the Code Committee, upon 
authorization of the Committee has also given an approval to the 
final draft of the Code on behalf of the Industry. 

The Industry as defined in the Code includes the manufacture of 
fresh water pearl button blanks and buttons, finished or unfinished. 
Fresh water pearl buttons are manufactured from fresh water 
mussel shells found largely in the Mississippi Valley. The shells are 
gathered by individuals who sell them to the button manufacturers. 
Cutting plants are scattered throughout the shell gathering terri- 
tory. The shells are shipped to these plants where they are cut into 
blanks and the blanks are re-shipped to the finishing- plants. The 
cutting plants furnish employment in small localities which in many 
cases have no other industry. A numl)er of finishing plants are 
located in Muscatine, Iowa, and others in the states of Massachusetts, 
New York, Wisconsin, Missouri and other parts of Iowa. The 
product is sold largely to garment manufacturers who in turn use 
the product in making medium and popular priced wash garments. 

According to the United States Census taken for the Industry for 
1931, the fresh water pearl button branch represented 37.8% of the 
gross production of the entire Industry which includes the manufac- 
ture of all buttons and 30.6% of the value of the production of the 
entire industry for that year. It is therefore the largest single branch 
of the entire Industry. The number of wage earners engaged in the 
entire Industry throughout the Country was 8,105. It is estimated 
that about 4500 i)c'rsons were engaged in the blank cutting and finish- 
ing operations of the Fresh Water Pearl Button Industry represent- 
ing about 50% of the total number of employees in the Button Indus- 
try in the United States. Compliance with the proposed Code has 
increased the number of employees from 4500 to 4800 since the first 
of August. 

It was attempted first by the Deputy Administrator to combine the 
various button codes into one code for the entire Industry, but this 
was found to be impracticable inasmuch as no unanimity could be 
reached by the representatives of the different branches of the Indus- 
try. However, a provision has been incorporated in this Code 

(8G0) 



361 

which, if agreed upon by all the branches of the Industry, may open 
the way for a cooperative administration of the various codes. 

The submitting Association represents 100% of the fresh water 
pearl button manufacturers in the United States and therefore 100% 
of the volume of business and number of employees. 

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. 

Article IV establishes the minimum wage for all employees em- 
ployed in the Industry. 

Article V sets forth the general labor provisions. 

Article VI provides for the general 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 Recovery Act. 

Article IX states that this Code shall not permit monopolies. 

Article X deals with price increases. 

Article XI specifies the effective date. 

nXDINGS 

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 management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practice, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

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

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



362 

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

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

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

For these reasons the Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
Februaey 26, 1934. 



CODE OF FAIR COMPETITION FOR THE FRESH WATER 
PEARL BUTTON 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 Fresh Water Pearl Button Industry, 
and shall be the standard of fair competition for this industry, and 
shall be binding on every member thereof. 

Article II — Definitions 

1. The term " industry " as used herein includes the manufacture 
of Fresh Water Pearl Button blanks and buttons, finished or un- 
finished, and such related branches or subdivisions as may from 
time to time be included under the provisions of this Code by the 
Administrator after such notice and hearing as he may prescribe. 

2. 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 compensation, or his interest otherwise in said 
Industry. 

3. The term " employer " as used herein includes any one for 
whose benefit such employee is so engaged. 

4. The term '' member of the Industry " as used herein includes 
any individual, partnership, association, corporation, or other per- 
son engaged in the Industry, either as an employer or on his or its 
own behalf. 

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

Article III — Hours 

1. Except as hereinafter provided, no employee shall be permitted 
to work in excess of forty (40) hours in any one week, nor more 
than eight (8) hours in any twenty-four (24) hour period. 

2. Members of shop repair crews, engineers, electricians, firemen, 
watchmen, plant managers, stock and shipping clerks shall not be 
permitted to work in excess of forty-four (44) hours in any one 
week. 

3. The provisions of this Article shall not apply to persons em- 
ployed in supervisory capacities, provided such persons earn not less 
than thirty dollars ($30.00) per week. 

4. No member of the Industry shall knowingly engage any em- 
ployee for any time which, when totaled with that already performed 

(363) 



364 

with another member or members of the Industry, exceeds the 
maximum permitted herein. 

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

Article IV — ^Wages 

1. Except as hereinafter provided, no employee shall be paid at 
less than the rate of thirteen ($13.00) dollars per forty (40) hour 
week. 

(a) No employee as defined in Article III, Sec. 2 shall be paid at 
less than the rate of thirteen ($13.00) dollars per forty four (44) 
hour week. 

(b) The Code Authority with the approval of the Administrator 
shall fix the minimum piece work rate which shall be paid persons 
for the carding of buttons in homes. 

2. No apprentice shall be paid at less than the rate of 70% of 
minimum wage per week of 40 hours for the first six months of em- 
ployment and thereafter not less than the minimum wages in section 
one of this article. The period of apprenticeship shall be strictly 
limited to six months and the number emploj^ed at any time shall 
not exceed 10% of the total number of employees. Any time worked 
by an apprentice shall be deemed a part of such apprenticeship 
period, whether such time is w^orked continuously, or in more than 
one shop, or for more than one employer. An affidavit sworn to and 
furnished by an employee as to the total number of hours he has 
worked a,s an apprentice in the industry shall be deemed sufficient 
evidence of the status of such employee. The number of apprentices 
to be employed as mentioned in this article is subject to review by the 
code authority with the right to increase the number if good cause 
be shown. 

3. Persons whose earning capacities are 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 condi- 
tions: 

(a) That they shall be paid proportionately no less than the 
other employees in the same factory receive for similar work, but 
in no case shall their compensation amount to less than seventy 
percent (70% ) of the amount required by the minimum wage pro- 
visions of this Code. 

(b) That the employer shall at once prepare and transmit to the 
Code Authorit}' 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 transmitted 
to the Code Authority. 

(c) The proportion of excepted persons to total employees at any 
time shall not exceed the proportion of such employees on the 
payroll during the week of July 15, 1933. 

(d) The Code Authoiity shall have the right to investigate and 
disallow any such claims for exception subject to review by the 
Administrator upon aj)peal by an employer or employee. 

(e) The Code Autiiority shall report to the Administrator within 
three (3) months and from time to time thereafter as to the effect 



365 

of the operation of this provision, both f^enerally and in cases of 
Individual hardship. 

4. This article establishes a minimum rate of pay, which shall 
apply regardless of whether an employee is compensated on a time 
rate, piece work, or other basis. No employer shall reduce the full- 
time weekly compensation of any employee receiving more than the 
minimum herein provided for below that in effect as of July 1, 1933, 
for any given class of work, whether such work was paid for on a 
monthly, weeklj'-, daily, hourly, or piece rate basis, notwithstanding 
that the hours of such employment may have been reduced by the 
provisions of this code ; the Code Authority, following an investiga- 
tion, may recommend such adjustments of rates as may be necessary 
to eliminate inequitable differentials. 

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) 3"ears of age shall 
be employed at operations or occupations, if any, which are hazardous 
in nature or detrimental to health. The Code Authority shall sub- 
mit to the Administrator within ninety (90) days of the effective date 
of this Code a list of such operations or occupations. 

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

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

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

5. No provision of this Code shall supersede any law within any 
state which imposes more stringent requirements on employers as to 
age of employees, wages, hours of work, or as to safety, health, or 
sanitary regulations, or insurance, or fire protection, or general 
working conditions, than are imposed by this Code. 

6. All employers shall post complete copies of Article I^, IV, 
and V of this Code in conspicuous places accessible to employees. 

7. The Code Authority shall study the problem of home work in 
this Industry and propose to the Administrator, not longer than five 
(5) months after the effective date of this Code, appropriate pro- 
visions for the regulation and control of such home work, and when 
approved by the Administrator, shall become binding upon all 
members of this Industry. 

Article VI — Administration 

To further effectuate the purpose of the Act, a Code Authority 
is set up to cooperate with the Administrator in the administration 
of this Code. 



366 

1. Organization and Constitution of the Code Authority. 

(a) The Code Authority shall consist of not more than nine (9) 
members. Six (6) members shall be appointed by the National 
Association of Button Manufacturers. In addition thereto, the Ad- 
ministrator may appoint not more than three (3) members who 
shall be without vote and who shall serve without expense to the 
Industry and together with the Administrator shall be given notice 
of and may sit at all meetings of the Code Authority. 

(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 association, 
by-laws, regulations and any amendments when made thereto, to- 
gether with such other information as to membership, organization 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

(c) In order that the Code Authority shall at all times be truly 
representative of the Industry and in other respects comply with 
the provisions of the Act, the Administrator may provide such 
hearings as he may deem proper, and may require an appropriate 
modification in the method of selection of the Code Authority, or 
any sub-Code Authority. 

(d) Members of the Industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authority and 
to participate in the selection of the members thereof by assenting 
to and complying with the requirements of this Code and sustain- 
ing 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 Admin- 
istrator, on the basis of volume of business and/or such other factors 
as may be deemed equitable. 

(e) 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 any one 
for any act of any other member, ofilcer, agent or employee of tlie 
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 the Code, except for his own wilful misfeasance or non- 
feasance. 

2. The Code Authority shall have the following powers and duties 
in addition to those elsewhere provided in this Code, subject to the 
right of the Administrator on review, to disapprove any action taken 
by the Code Authority. 

(a) To adopt by-laws and rules and regidations for its pro- 
cedure and for the administration and enforcement of the Code, in 
accordance 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 for use of the Code 
Authority and of the Administrator in the administration and en- 
forcement of the Code, and for the information of the President, 



367 

reports based on periods of two or four weeks, or multiples thereof, 
as soon as the necessary readjustment within the Industry can be 
made, and to give assistance to members of the Industry in improv- 
ing methods, and otherwise. All individual reports shall be kept 
confidential as to members of the Industry and only general sum- 
maries thereof may be published. 

(c) To receive complaints of violation of this Code, make investi- 
gations thereof and provide hearings thereof and adjust such com- 
plaints, and bring to the attention of the Administrator for prose- 
cution, recommendations, and information relative to unadjusted 
violations. 

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

(e) To coordinate the administration of this Code with such other 
Codes if any, as may be related to the Industry, or any sub-division 
thereof, and to delegate to any other administrative authority, with 
the approval of the Administrator, such powers as will promote joint 
and harmonious action upon matters of common interest. 

(f) 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. 

(g) To initiate, consider and make recommendations for the mod- 
ifications or amendment of this Code which shall become effective as 
a part of this Code when approved by the Administrator after such 
notice and hearing as he may specify. 

(h) To cause to be formulated an accovmting system and methods 
of cost finding and/or estimating capable of use by all members of 
the industry. After such system and methods have been formulated, 
full details concerning them shall be made available to all members. 
Thereafter all members shall determine and/or estimate costs in 
accordance with the principles of such methods. 

(i) To investigate and recommend a uniform system, or standard 
method of classifying blanks and grading finished buttons by the 
members of the Industry, which upon approval by the Administrator 
and after such notice of hearing, as he shall prescribe, shall become 
a part of this Code. 

(j) To recommend to the Administrator appropriate provisions 
for the regulation of the disposal of distress merchandise. 

(k) To recommend to the Administrator and upon his approval, 
subject to his review, to enforce such regulations affecting the pro- 
curing, conservation, and propagation of mussel shells as may be 
deemed necessary to assure a continuous supply of raw materials. 

(1) To investigate competitive articles imported into the United 
States on such terms and under such conditions as to render ineffec- 
tive or seriously endanger the maintenance of this Code and to act 



368 

as the agency for making complaints to the proper governmental 
agency on behalf of this Industry. 

(m) 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. 

(n) to coordinate the administration of this Code with such other 
codes as may be related to the Industry, the Code Authority may 
designate representatives for the purpose of meeting with like repre- 
sentatives designated by the Code Authorities of the related Codes 
referred to above. Such representatives shall be duly authorized to 
constitute a committee, which committee shall, as soon as practicable, 
submit to the Administrator reports and recommendations with 
respect to: 

(1) The establishment and method of selection of a General Button 
Manufacturers Coordinating Council. 

(2) The jurisdiction, as well as the administrative powers and 
authority to be delegated to such Coordinating Council. 

Upon approval by the Administrator, after such hearings and 
notice as he shall prescribe, of such recommendations of the Council, 
selected in the manner above provided for, the Code Authority shall 
be subject to the jurisdiction, rules, regulations, and by-laws of the 
General Button Manufacturers Coordinating Council in the form 
and manner approved by the Administrator, any express or implied 
delegation of power or duty in this Code to the Code Authority 
notwithstanding. 

3. 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 Adminis- 
trator may deem necessary for the purposes recited in Section 3 (a) 
of the National Industrial Recovery Act. Nothing in this Code shall 
relieve any member of the Industry of any existing obligations to 
furnish reports to any government agency. 

4. If the Administrator shall determine that any action of a 
code autliority 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 investiga- 
tion of the merits of such action and further consideration by such 
code authority or agency pending final action which shall not bo 
effective unless the Administrator approves or imless he shall fail 
to disapprove after thirty days' notice to him of intention to pro- 
ceed with such action in its original or modified form. 

Article VII — Trade Practices 

1. No member of the Industry shall use selling methods or credit 
terms which tend to deceive or mislead the customers or prospective 
customer. 

2. No member of the Industry shall brand or mark any com- 
modity in any manner which t<^n(ls to mislead or deceive purchasers 
with respect to the grade, quality, origin, size, material, content or 
preparation of such commodity in conformity with the standards as 



369 

established by the Code Authority when approved by the Adminis- 
trator. 

3. No member of the Industry shall use advertising or other rep- 
resentation which refers inaccurately in any material particular to 
any competitors or their commodities, prices, values, credit terms, 
policies or services. 

4. No member of the Industry shall publish or circularize un- 
justified or unwarranted threats "of legal proceedings which tend to 
or have the effect of harassing competitors or intimidating any of 
their customers. 

5. No member of the Industry shall secretly offer or make any 
payment or allowance of a rebate, refund, commission, credit, un- 
earned discount or excess allowance, whether in the form of money 
or otherwise, for the purpose of influencing a sale nor shall a mem- 
ber secretly extend to any customer any special service or privilege 
not extended to all customers of the same class, 

6. 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 or such employee, 
the principal of such agent or the reprevSented party, without the 
knowledge of such employer, principal or party. Commercial 
bribery provisions are not to 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. 

7. No member of the Industry shall secretly give anything of value 
to the employee or agent of a customer for the purpose of influencing 
a sale, or in furtherance of a sale render a bill or statement of account 
to such employee, agent or customer which is inaccurate in any 
material particular. 

8. No member of the Industry shall attempt to induce the breach 
of an existing contract between a competitor and his employee or 
customer, or source of supplies ; nor shall any such member interfere 
with or object to the performance of such contractual duties or 
services. 

9. No member of the Industry shall require that the purchase of 
any goods be prerequisite to the purchase of an}- other goods. 

10. No member of the Industry shall use any unfair means to 
secure information regarding the manner in which a competitor 
conducts his business. 

11. No member of the Industry shall ship goods on consignment 
except under circumstances authorized by the Code Authority and 
ajoproved by the Administrator. 

12. No member of the Industry shall grant any term of cash dis- 
count in excess of one percent (1%) ten days, net thirty, E.O.M. 
Goods shipped on or after the twenty-fifth of a month may be billed 
as of the first of the following month. 

13. All sample requirements in excess of one half gross in bulk in 
any one number and all sample cards furnished for the use of cus- 
tomers' salesmen shall be charged and paid for by the customer at 
the sales price of the finished button, plus all carding and other costs 
entailed. 



370 

14. No member of the Industry shall sell any articles subject to the 
provisions of this Code below his individual cost. However, any 
member of the Industry may meet the price of any competing mem- 
ber of the Industry whose cost is lower. Cost for the purpose of this 
provision shall be determined in accordance with the uniform cost 
system provided for in Section 2 (h) of Article VI of this Code 
when such system is approved by the Administrator. 

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 sub-section (b) of Section 10 of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, 
approval, license, rule or regulation issued under Title I of said 
Act and specifically, but without limitation, to the right of the Presi- 
dent to cancel or modify his approval of this Code or any conditions 
imposed by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 
modified on the basis of experience or changes in circumstances, such 
modification to be based upon application to the Administrator and 
such notice and hearing as he shall specify, and to become effective 
on approval 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 — 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. But when made such increases should, 
so far as possible, be limited to actual increases in the seller's costs. 

Article XI — Effectr^ Date 

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

Approved Code No. 310. 
Registry No. 1009-1-02. 



Approved Code No. 311 
CODE OF FAIR COMPETITION 

FOR THE 

READY MIXED CONCRETE INDUSTRY 

As Approved on February 27, 1934 



ORDER 



Approving Code of Fair Competition for the Ready-Mixed 
Concrete 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 Ready Mixed Concrete 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, Subsection (c), 
insofar as they prescribe a waiting period between the filing with 
the committee of the marketing area 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, 
Administrator for Industiial Recovery. 

Approval recommended : 
W. A. Harriman, 

Division Adininistrator. 

Washington, D.C, 

February 27, 1931^. 

43081° 376-145 34 (371) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Ready-Mixed Concrete Industry, a hearing on which was conducted 
in AVashington on the twenty-sixth of October 1933, in accordance 
with the proA'isions of the National Industrial Recovery Act. 

PKOVISIOXS OF THE CODE AS TO WAGES AND HOURS 

This Code provides for a work week of not more than forty hours 
nor more than six days. Exceptions to the limitation on working 
hours are pro\ided for truck drivers and dispatchers, who may work 
forty-four hours per week; employees engaged in emergency repair 
work, who are limited in number and may work forty-eight hours 
per week Avhen so engaged; Avatclimen, who may vrork sixty hours 
per week; and salesmen and managers earning regularly over $35.00 
per week. Emijloyees paid on an hourly basis are to be compensated 
at the rate of one and one-third their normal rates of pa}' for all 
time worked in excess of the maximum hours provided. 

This Code provides for mininnnn hourly rates of pay of 35 cents 
per hour in the South, 40 cents per hour in the intermediate area, 
and 45 cents per hour in the Northern states, with 50 cents being 
stipulated as the minimum rate for New York City. These rates 
are decreased by 5 cents or 10 cents pei- hour, respectively, for cities 
between 500,000 and 75,000 population, and for cities of less than 
75,000 po})ulation. Mininuun weekly wages for watchmen are set 
at $13.00 in the South, and $14.00 elsewhere. Minimum wages for 
accounting and clerical employees are set at from $13.00 to $15.00 
per week, depending on population. Provisions are made for main- 
taining normal wage differentials, and to the extent practicable, 
weekly earnings are not to be decreased. 

No person under sixteen years of age may be employed, and no 
person under 18 years of age may work at hazardous or unhealthy 
occupations. Employers are required to provide for the welfare and 
safety of their employees. 

ECONOiMlC EFFECTS OF THE CODE 

Tlu' Researc'li and Planning Division estimates that, based upon 
available data, there are about 7,500 employees in this Industry, ex- 
clusive of office helj). Tlie total employment is probably about 8,000. 
A 1029 estimate of value of industry products indicates a figure of 
about three million dollars annually, although this figure is probably 
high f'oi- the period since 1929. 

'Ihe noiinal vv(jrl< week foi' eniployees in this Industiy has formerly 
been froju 50 to 00 hours. With a normal volume of business, the 

(372) 



373 

maximum weekly working limits of 40 and 44 hours for plant and 
delivery employees, respectively, will result in an appreciable spread 
of employment. The lack of definite figures on current and past 
employment precludes an accurate estimate with respect to the num- 
ber of employees who will be added to payrolls by reason of the 
approval of this Code. The same lack of information on prevailing 
wage rates prohibits a definite estimate as to increased earning power 
by reason of the Code provisions. From general information, it is 
considered probable that, in spite of the shorter hours worked, 
weekly earnings will not in any case be lowered, and the average 
weekly compensation per employee will probably be much higher by 
reason of the approval of this Code. 

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 indus- 
try for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

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

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including 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. 

I wish to point out the fact that certain of the labor provisions 
of this Code are subject to further consideration and later revision, 
and are being approved primarily because of the existence of similar 



374 

provisions in approAed competing Codes, to wit: the Code for the 
Crushed Stone, Sand and Gravel and Slag Industries, and the Code 
for the Builders' Supplies Trade Industry, It is my purpose to 
consider the advisibility of re-convening hearings on all' three of 
these Codes at a later date after proper notice, for the purpose of 
amending the labor provisions in these Codes with a view to more 
effectively spreading employment and improving living conditions for 
employees, and in so far as is equitable to maintain similarity in 
the labor requirements in these Codes. 

For these reasons, therefore, I have approved this Code. 
Respectfully, 

Hugh S. Johnson, 

A dmirvistrat o r. 
Washington, DC, 

Fehruary 27, 193^. 



CODE OF FAIR COMPETITION FOR THE READY MIXED 
CONCRETE 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 Ready Mixed Concrete Industry and shall 
be binding upon every member of the Industry. 

• Article II — Definitions 

Section 1. Ready Mixed Concrete Industry. — As used in this 
Code, the term " ready mixed concrete industry " includes the manu- 
facture for sale, and sale by those who manufacture, of ready mixed 
concrete, whether manufactured at a central mixing plant or in 
transit, or at the site of the work, and such related branches and 
subdivisions 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. 

Section 2. Employee. — The term " employee ", as used herein, 
includes any and all persons engaged in the Industry however com- 
pensated, except a member of the Industry. 

Section 3. Employer. — The term " employer ", as used herein, 
includes anyone by whom any such employee is compensated or 
emploj'ed. 

Section 4. Memher of the Industry. — The term " Member of the 
Industry ", as used herein, includes, but without limitation, any indi- 
vidual, partnership, association, corporation, or other form of enter- 
prise engaged in the Industry, either as an employer or on his or its 
own behalf. 

Section 5. Region. — The term " region ", as used herein, includes 
any one of the several parts of the United States established as here- 
inafter set forth in Article VI of this Code. 

Section 6. Marketing Area. — The term " marketing area ", as used 
herein, includes any subdivision of any region or regions established 
pursuant to Article VI of this Code. 

Section 7. Association. — The term "Association ", as used herein, 
shall mean the National Ready Mixed Concrete Association, Inc. 

Section 8. Committee on Organization. — The term " Committee on 
Organization ", as used herein, shall mean the committee of the In- 
dustry appointed to present this Code and to serve as the Code 
Authority, as described in Article VI, Section 2, of this Code, until 
the members of such Code Authority have been regularly elected as 
hereinafter provided. 

Section 9. Code Authority. — The term " Code Authority ", as used 
herein, shall mean the committee of the Industry, selected in accord- 
ance with the provisions of Article VI, Section 2, of this Code, for 
the purpose of administering the provisions of this Code. 

(3T5) 



376 

Section 10. President^ Act,, and Ad7mnistrator. — The terms " Pres- 
ident ", and "Act ", and "Administrator ", as used herein, shall mean, 
respectively, the President of the United States, Title I of the Na- 
tional Industrial Recovery Act, and the Administrator for Industrial 
Kecovery. 

Article III — Hours 

Section 1. Working Time. — 

(a) Except as set forth in Section 2 of this Article, no employee 
Bhall be permitted to work more than 40 hours per week, or more than 
6 days in any one week. 

(b) Employers Avho personally perform manual work or are en- 
gaged on mechanical operations shall be subject to the extent per- 
mitted by the Act, to the same maximiun hours as are provided in 
this Code for employees. 

(c) No employer shall knowingly engage any employee for any 
time which, when totaled with that previously performed with an- 
other employer in this Industry, exceeds the maximum hours herein 
specified. 

Section 2. Exceptions. — 

(a) Truck Drivers and Dispatchers. — Except as provided in sub- 
sections (b) and (e) of this Section, no truck driver, helper, or dis- 
patcher shall be permitted to work more than 44 hours per week, nor 
more than 6 days in any one week. 

(b) Emergency Employment. — Except as provided in subsection 
(e) of this Section, the total number of working hours of employees 
engaged in emergency repair work involving breakdowns or protec- 
tion of life or property, comprising not more than five (5) percent of 
the total number of employees, shall be not more than 48 in any one 
week. 

(c) Salesmen ami Mamagers. — The maximum hours specified in 
Section 1 of this Article shall not apply to commercial travelling 
salesmen, (not including truck drivers), or to employees engaged in 
executive or managerial capacities who receive not less than $^5.00 
per week. 

(d) Watchnie?!. — The total number of working hours of employees 
engaged as watchmen shall not exceed 60 in any one week, nor shall 
any employee engaged as a watchman work more than 6 days in any 
one week. 

(e) Overtime C onpensation. — Employees who are compensated 
on an hourly basis may work in excess of the maximum hours pre- 
scribed herein, provided that not less than one and one-third times 
the normal hourly rate is paid for all time worked in excess of the 
maximum hours provided in this Article III. 

Ak'iklk IV — Wages 

Se(jtion 1. Hates of Pay. — 

(a) Except as otherwise provided in subsection (b), (c), and (d) 
of this section, no employee shall be paid less than the minimum 
rates herein below specifie<l op])ositc each division within cities of 
over 500,000 population and in the immediate trade area of such 
city in such division, nor less than 5^^ per hour less than the rates 



377 

hereinbelow specified in cities of less than 500,000 population or 
more than 75,000 population and in tlie immediate trade areas of 
such cities in such divisions, nor less than 100 less than the rates 
hereinbelow specified in each city or place of less than 75,000 popu- 
lation in any such di\dsion, unless it is included in a trade area. For 
the purposes of this Code a trade area shall be defined by the Code 
Authorit3% subject to the approval of the Administrator, and popu- 
lation shall be determined by the 1930 Federal census. 

Alabama, Georgia, Florida, North Carolina, South Carolina, Loui- 
siana, Mississippi, Tennessee, Arkansas, Kentucky, Texas, Virginia, 
West Virginia, New Mexico, and Arizona, 35 cents per hour. 

Delaware, Maryland, District of Columbia, Colorado, Wyoming, 
Oklahoma, Utah, Montana, Idaho, Washington, Oregon, Nevada, 
and southern division of California, 40 cents per hour. 

California (northern division), Illinois, Indiana, Pennsylvania, 
New Jersey, Nebraska, New York (except New York City), Ver- 
mont, New Hampshire, Maine, Massachusetts, Connecticut, Rhode 
Island, Minnesota, North Dakota, South Dakota, Iowa, Ohio, Mis- 
souri, Kansas, Wisconsin, and Michigan, 45 cents per hour. 

City of New York, 50 cents per hour. 

The minimum rates of pay established in this section shall apply 
only to common labor or totally unskilled labor; and skilled labor 
shall be compensated at rates of pay higher than the rates herein 
provided. 

The Southern Division of California, for the purposes of this 
Code, includes all of the State of California south of the 36th North 
latitudinal line; and the Northern Division of California includes 
the remainder of the State of California. 

(b) General Compensation Increase. — To the extent practicable, 
weekly earnings shall not be decreased, notwithstanding that hours 
of work may be reduced, and rates of pay for occupations in excess 
of the minimum herein prescribed shall be increased so as to main- 
tain differences in full time weekly earnings existing on July 15, 
1933. Upon request of the Administrator, reports shall be furnished 
covering such adjustments. 

(c) Watchmen. — The weekly wage for watchmen shall be not less 
than $13.00 per week in Alabama, Georgia, Florida, North Caro- 
lina, South Carolina, Louisiana, Mississippi, Tennessee, Arkansas, 
Kentucky, Texas, Virginia, West Virginia, New Mexico, and Ari- 
zona, and not less than $14.00 per week in Delaware, Maryland, Dis- 
trict of Columbia, Colorado, Wyoming, Oklahoma, Utah, Montana, 
Idaho, Washington, Oregon, Nevada, California, Illinois, Indiana, 
Pennsylvania, New Jersey, Nebraska, New York, Vermont, New 
Hampshire, Maine, Massachusetts, Connecticut, Khode Island, Min- 
nesota, North Dakota, South Dakota, Iowa, Ohio, Missouri, Kansas, 
Wisconsin, and Michigan. 

(d) Salaried Employees. — No accounting, clerical, or office em- 
ployee shall be paid less than the rate of $15.00 per week in any 
city of 500,000 or more population, or in the immediate trade area of 
such city ; or less than the rate of $14.00 per week in any city between 
100,000 and 500,000 population, or in the immediate trade area of 
such city; or less than $13.00 per week in any city below 100,000 pop- 

43081 ° 370-1^5 34 2 



378 

ulation, or in the immediate trade area of such city. Population for 
the purposes of this paragraph shall be determined by reference to 
the 1930 Federal Census. 

(e) Piece Work Compensation. — This section establishes a mini- 
mum rate of pay which shall apply irrespective of whether any 
employee is compensated on a time rate, [)iece rate or other basis. 

(f ) Metliod of Payment. — An employer shall make payment of all 
■wages due in lawful currency or by negotiable check therefor, pay- 
able on demand. Wages of employees paid on an hourly basis shall 
be paid at least twice a montli and salaries at least once a month. 
These wages shall be exempt from any payments for pensions, in- 
surance, or sick benefits other than those voluntarily paid by wage 
earners. 

The employer or his agents shall accept no rebates, directly or in- 
directly, on such wages nor give anything of value or extend favors 
to any person for the purpose of influencing rates of wages or the 
working conditions of his employees. 

Article V — Labor Provisions 

Section 1. Rights of Lahor. — 

(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 nuitual aid or protection. 

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

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

Section 2. ChiJd Lahor. — No person under 16 years of age shall 
be employed in the industry, nor anyone under 18 years of age at 
occupations liazardous in nature or detrimental to health. In any 
State, an employer shall be deemed to have complied with this provi- 
sion if he shall have on file a certificate or permit duly issued by the 
authority in such State empow^ered to issue employment or age cer- 
tificates ()!• ])einiits, showing that the emploj-ee is of the required 
age. 

Section H. Lahor F-'rotcetion. — 

(a) Within cacli State or subdivision thereof, no provision of this 
Code shall sujx'i-sedc any laws of such State or subdivision imposing 
more stringent rcciuirements on employers, regulating the age of 
emi)loyees. wages, liours of work, or healtli, fire or general working 
conditions than are imposed under this Code. 

(b) No em]>loyer shall reclassify employees or duties of occupa- 
tions ])erforme(l by employees, or engage in any other subterfuge so 
as to defeat the puri:)oses of the Act or of this Code. 

(c) Each employer shall post in conspicuous and accessible places 
full collies of this Code. 



379 

(d) Each employer shall provide for the health and safety for 
his employees while engaged in the discharge of their duties. He 
shall not be relieved from protecting his employees by workmen's 
compensation insurance according to the amounts required in the 
State of jurisdiction. 

(e) Each employer shall so administer work in his charge as to 
provide a maximum practicable continuity of employment for his 
employees. 

(f ) 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 or such emplo3'ment. 

Section 4. Existing Labor Contracts. — Labor agreements now in 
force between individual members or groups of members and their 
employees shal