(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

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."




3* 



NATIONAL RECOVERY ADMINISTRATION 

HUGH S. JOHNSON, Administrator for Industrial Recovery 



CODES OF FAIR COMPETITION 

Nos. 330-373 
AS APPROVED 

MARCH 11-MARCH 27, 1934 

WITH SUPPLEMENTAL CODES, AMENDMENTS 

EXECUTIVE AND ADMINISTRATIVE ORDERS 

ISSUED BETWEEN THESE DATES 



VOL. VIII 




WE DO OUR PART 



:.. ■ •-.::- ;; J'.: 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 



MAY 26 1936 



v * 

4 

Charge* to utjoit acct 
with Supt. of Oocunwrts 



CONTENTS 



Code 

No. 



Industry 



CODES OF FAIR COMPETITION 

330 Scrap Iron, Nonferrous Scrap Metals and Waste Materials 

Trade 

331 Bulk Drinking Straw, Wrapped Drinking Straw, Wrapped 

Toothpick, and Wrapped Manicure Stick 

332 Ladies' Handbag 

333 Canvas Goods 

334 Beverage Dispensing Equipment 

335 Art Needlework 

336 Covered Button 

337 Coal Dock 

338 Wooden Insulator Pin and Bracket Manufacturing 

339 Printing Ink Manufacturing 

340 Motorcycle Manufacturing 

341 Fiber and Metal Work Clothing Button Manufacturing. _ 

342 Sanitary and Waterproof Specialties Manufacturing 

343 Clay Machinery 

344 Metal Lath Manufacturing 

345 Collapsible Tube 1 

346 Bowling and Billiard Operating Trade 

347 Machinery and Allied Products 

348 Burlesque Theatrical 

349 Mayonnaise 

350 Talc and Soapstone 

351 Quicksilver 

352 Flag Manufacturing 

353 Insulation Board 

354 Small Arms and Ammunition Manufacturing 

355 Rug Chemical Processing Trade 

356 Fuller's Earth Producing and Marketing 

357 Industrial Furnace Manufacturing 

858 Cylinder Mould and Dandy Roll 

359 Preformed Plastic Products 

360 Brush Manufacturing 

361 Perfume, Cosmetic and Other Toilet Preparations 

362 Photographic and Photo Finishing 

363 Men's Neckwear 

364 Clay Drain Tile Manufacturing 

365 Sand-Lime Brick 

366 Retail Monument 

367 Metal Treating 

368 Print Roller and Print Block Manufacturing 

369 | Expanding and Specialty Paper Products 

370 I Open Paper Drinking Cup and Round Nesting Paper Food 

Container 

371 Sanitary Milk Bottle Closure 

372 j Shoe Rebuilding Trade 

373 Infants' and Children's Wear 



Date Ap- 
proved, 1934 



Mar. 12 

Mar. 14 
Mar. 14 
Mar. 16 
Mar. 16 
Mar. 16 
Mar. 16 
Mar. 16 
Mar. 16 
Mar. 16 
Mar. 17 
Mar. 17 
Mar. 17 
Mar. 17 
Mar. 17 
Mar. 17 
Mar. 17 
Mar. 17 
Mar. 20 
Mar. 21 
Mar. 21 
Mar. 21 
Mar. 21 
Mar. 22 
Mar. 22 
Mar. 23 
Mar. 23 
Mar. 23 
Mar. 23 
Mar. 23 
Mar. 23 
Mar. 23 
Mar. 23 
Mar. 24 
Mar. 24 
Mar. 26 
Mar. 26 
Mar. 26 
Mar. 26 
Mar. 26 

Mar. 26 
Mar. 26 
Mar. 27 
Mar. 27 



(in) 



IV 



CONTENTS— Continued 



Date 



AMENDMENTS 

Cotton Garment, No. 3 

Chinaware and Porcelain Manufacturing, No. 1 

Underwear and Allied Products Manufacturing, No. 1 

Fishing Tackle, No. 2 

Hardwood Distillation, No. 1 

Cotton Garment, No. 4 

Investment Bankers, No. 2 

Lumber and Timber Products, No. 5 

Millinery, No. 1 

Women's Belt, No. 1 

Trucking, No. 1 

Wool Textile, No. 2 

LABOR PROVISIONS 

Distilled Spirits 

Brewing 

SUPPLEMENTS 

Construction, No. 2 (For Painting, Paperhanging and Decorat- 
ing) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 7 (For Tool and Implement 
Manufacturing) 

Wholesaling or Distributing Trade, No. 3 (For Commercial 
Stationery and Office Outfitting Trade) 

Wholesaling or Distributing Trade, No. 2 (For Wholesale Wall- 
paper Trade) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 8 (For Hack Saw Blade Manu- 
facturing) 

Construction, No. 4 (For Cement Gun Contractors) 

Constriction, No. 3 (For Elevator Manufacturing) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 9 (For Forged Tool Manufac- 
turing) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 10 (For Cutlery, Manicure 
Implement and Painters and Paperhangers Tool Manufac- 
turing and Assembling) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 12 (For Power and Gang Lawn 
Mover Manufacturing) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing aid Metal Coating, No. 11 (For Tackle Block Manu- 
facturing) 

EXECUTIVE ORDERS 

Government Contracts and Contracts involving the use of Gov- 
ernment Funds 

Establishing the office of Special Adviser on Foreign Trade 

Expenditures out of allocations from the appropriation for Na- 
tional Industrial Recovery 

ADMINISTRATIVE ORDERS 

Cotton Garment, Determination of Northern and Southern 
Sections as to the operation of Section G of Article IV 

Electrical Manufacturing, Granting exemption to the Wire and 
Cable Subdivision 



3-15-34 
3-16-34 
3-16-34 
3-21-34 
3-21-34 
3-22-34 
3-23-34 
3-23-34 
3-24-34 
3-24-34 
3-26-34 
3-26-34 



3-21-34 
3-22-34 



3-12-34 

3-15-34 
3-16-34 
3-16-34 



3-17-34 
3-21-34 
3-21-34 



3-24-34 

3-26-34 
3-26-34 
3-26-34 



3-14-34 
3-23-34 

3-27-34 



3-13-34 
3-13-34 



CONTENTS— Continued 



Date 



Page 



ADMINISTRATIVE ORDERS— Continued 

Cotton Garment, Stay of application of determination of 
Northern and Southern Sections as to the operation of Section 
G of Article IV 

Knitted Outerwear, Termination of stay for manufacturers of 
knitted outerwear for infants and children 

Requiring certain statistical reports from members of industries 
subject to Codes of Fair Competition 

Retail Food and -Grocery Trade, Approving allowance for actual 
wages of labor 

Wholesale Food and Grocery Trade, Approving allowance for 
actual wages of labor 

Used Textile Bag, Extension of time to file list of hazardous oc- 
cupations for minors 

Automotive, Establishing a board of three 

Millinery, Granting stay of hours provision 

Wiping Cloth, Extending time for submission of a plan to adjust 
wages above the minimum 

Wool Textile, Approving rules of Practice and Merchandising. . 

Index __. 



3-16-34 

3-16-34 

3-16-34 

3-21-34 

3-21-34 

3-23-34 
3-26-34 
3-26-34 

3-26-34 
3-27-34 



869 
870 

871 
872 

873 

874 
876 

877 
878 
880 



CODES OF FAIR COMPETITION 



Approved Cede No. 330 
CODE OF FAIR COMPETITION 

FOR THE 

SCRAP IRON, NONFERROUS SCRAP METALS AND 
WASTE MATERIALS TRADE 

As Approved on March 12, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Code of Fair Competition for the Scrap Iron, Nonferrous Scrap 
Metals and Waste Materials 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 the Scrap Iron, Nonferrous Scrap Metals 
and Waste Materials Trade, 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 Admin- 
istrator having found that the said Code of Fair Competition com- 
plies 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, Pres- 
ident of the United States, pursuant to the authority vested in me by 
Title I of the National Industrial Recovery Act, approved June 16, 
1933, and otherwise, do approve the report and recommendations 
and adopt the findings of the Administrator and do order that the 
said Code of Fair Competition be and it is hereby approved, sub- 
ject to the following conditions : 

The Code Authority for the " Waste Paper Trade " and/or the 
Administration Member on said Code Authority shall report to the 
Administrator not later than sixty (60) days after the effective 
date hereof, whether or not a supplementary code is necessary or de- 
sirable for the "Waste Paper Trade "and recommend all necessary 
provisions for such supplementary code. Such recommendations 
when approved by the Administrator after such notice and hearing 
as he may deem proper shall have the same force and effect as other 
provisions of this Code. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dministrator. 

The White House, 

March 12, 193J>. 

4597O 425-66 34 (1) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the Hearing on the Code of Fair Com- 
petition for the Scrap Iron, Nonferrous Scrap Metals and Waste 
Materials Trade, held in accordance with the provisions of the Na- 
tional Industrial Recovery Act in the Auditorium of the Depart- 
ment of Commerce, on November 22, 1933. The Code which is 
attached was presented by duly qualified and authorized representa- 
tives of the Trade, complying with statutory requirements, said to 
represent over 60 percent by volume of the Trade. 

In accordance with the customary procedure every person who had 
filed a request for an appearance was freely heard in public, and all 
statutory and regulatory requirements were complied with. 

In this Trade, which is one of collection, the wholesaler buys 
from the retailer and sells to the industrial consumer. The organ- 
ization of the Trade is complicated by the fact that the usual dis- 
tinctions between wholesaler and retailer are blurred. Concerns 
which are retailers of certain commodities included in the Trade 
are often wholesalers of other commodities. 

Those concerns which are exclusively wholesalers in general evi- 
denced a preference for separate Codes by commodity divisions, pre- 
ferring to set up Code Authorities free from retailer influence. The 
absence of a clear line of demarcation between a wholesaler and a 
retailer, and even between the operations of wholesaling as dis- 
tinguished from retailing, would have caused considerable con- 
fusion under such a plan. Further, it would have been difficult to 
bring the mairy junk dealers under the Recovery Program in that 
manner. Had separate Codes for wholesalers been set up, it would 
have been almost impossible to organize retailers and to include 
them in any Code. Had separate Codes for each commodity been 
extended to include the retailer (referred to in the Code as " mixed 
dealer"), the latter would have found himself under an impossible 
multiplicity of Codes. 

The Code submitted herewith represents a compromise between this 
conflict of interests, in which: 

(1) Every one dealing in waste materials is brought under one 
Code in which any mixed dealer may find all the provisions under 
which he must operate. 

(2) Code Authorities are set up by commodities, with more effec- 
tive representation for the small retailer than he could have attained 
if completely separated. 

(3) A waste trade committee is established to coordinate labor 
provisions for all commodities. 

The Code as now submitted has been agreed to between all inter- 
ests, on the understanding that recommendations regarding repre- 
sentation on Code Authorities should be submitted for approval at 
the same time as the Code. 

(2) 



THE TRADE 



The Trade comprises about 12,000 concerns. In 1929 the Trade 
provided employment for approximately 180,000 workers. Accord- 
ing to the Associations submitting this Code aggregate annual sales 
have fallen from $900,000,000 in 1929 to about $158,000,000 in 1933. 



PROVISIONS OF THE CODE 

The Code provides for a minimum wage in the North of 32^0 for 
men and 27%0 for women, and in the South 27i/>0 for men and 22y 2 
for women. The weekly rate of pay for employment in excess of 
the minimum wages provided in the Code shall not be reduced 
although the hours of work have been reduced and the pay for such 
employment is to be increased by an equitable readjustment of all 
pay schedules. 

According to testimony at the Public Hearing, minimum wages 
have been increased approximately 50% in the North and up to 100% 
in the South. An analysis of the questionnaire sent out by the Divi- 
sion of Research and Planning shows that on June 15, 1933, 80% of 
the employees in this Trade were receiving less than 350 per hour 
and 50% were receiving, less than 250 per hour. 

Hours of work are limited to 40 hours in an}^ one week with the 
following exceptions : Male workers on outdoor work only and office 
employees are permitted to work 48 hours in any one week provided 
they do not average more than 40 hours per week over any 12-week- 
period; crane and locomotive crews, oxygen plant operators and 
truck drivers and their helpers are permitted to work 48 hours per 
week; maintenance employees are permitted to work 44 hours per 
week; executives and employees in a supervisory capacity receiving 
$35.00 per week, outside salesmen and bikers, and watchmen are not 
limited as to hours; employees engaged in emergency repair work 
are excepted but are to be paid time and one-third for all overtime 
work. The survey made by the Division of Research and Planning 
indicates that employment will be increased approximately 24%. 

FINDINGS 

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

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 



required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industrv. 

(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 sub- 
section (b) of Section 10 thereof; and that the applicant associations 
are industrial associations truly representative of the aforesaid 
Trade; and that said associations impose no inequitable restrictions 
on admission to membership therein. 

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

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

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

I recommend that the Code be approved. 
Respectfully submitted. 

Huoh S. Johnson, 

A dministrator. 
March 8, 1934. 



CODE OF FAIR COMPETITION FOR THE SCRAP IRON", 
NONFERROUS SCRAP METALS AND WASTE MATE- 
RIALS TRADE 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Scrap Iron, Nonferrous Scrap Metals 
and Waste Materials Trade, and shall be the standard of fair compe- 
tition for such Trade and shall be binding upon every member 
thereof. 

Article II — Definitions 

The term " Scrap Iron, Nonferrous Scrap Metals and Waste 
Materials Trade " or " Trade " as used herein, and as subdivided 
into the following specific commodity trades, includes the buying 
and/or handling for resale purposes on commission or otherwise 
of scrap iron and steel, nonferrous scrap metals, cotton and woolen 
rags, scrap rubber, waste paper, and other commodities commercially 
classified as waste materials. It shall also include the buying and/or 
handling for resale purposes on commission or otherwise of tex- 
tile waste insofar as the members of that Division of the Trade, as 
hereinafter defined, shall signify their intention in writing to the 
Waste Trade Committee to be governed by this Code. 

(a) The term "Scrap Iron and Steel Trade" as used herein 
includes specifically the buying and/or handling for resale pur- 
poses on commission or otherwise of scrap iron and steel. The 
term " Scrap Iron and Steel Trade " also includes the dismantling 
of cars, ships, and locomotives whose principal salvage value is 
scrap iron and steel 

(b) The term "Nonferrous Scrap Metal Trade" as used herein 
includes the buying and/or handling for resale purposes on com- 
mission or otherwise of nonferrous scrap metals. 

(c) The term "Wool Stock Trade" as used herein includes the 
buying and/or handling for resale purposes on commission or other- 
wise of woolen rags and clips, new and old. 

(d) The term "Scrap Rubber Trade" as used herein includes 
the buying and/or handling for resale purposes on commission or 
otherwise of scrap rubber. 

(e) The term "Waste Paper Trade" as used herein includes 
the buying and/or handling for resale purposes on commission or 
otherwise of waste paper. 

(f) The term "Cotton Rag Trade" as used herein includes the 
buying and/or handling for resale purposes on commission or other- 
wise of cotton and/or linen rags. 

(g) The term " Textile Waste Trade " as used herein includes, but 
only as provided below, the buying and/or handling for resale pur- 
poses on commission or otherwise of textile waste. 

(5) 



Members of this Division of the Trade, who handle other com- 
modities included under this Code, may operate under the provisions 
of this Code by signifying their intention in writing to the Waste 
Trade Committee. 

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 compen- 
sation. 

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

The term " member of the Trade " as used herein includes anyone 
engaged in the Trade as above denned, either as an employer or on 
his own behalf. 

The term " South " as used herein includes the States of Virginia, 
North Carolina, South Carolina, Florida, Georgia, Alabama, Ten- 
nessee, Mississippi, Louisiana, Arkansas, Oklahoma, Texas, and the 
District of Columbia; the following States shall be included in the 
" South " except with respect to commodities included in the Scrap 
Iron and Steel Trade : Kentucky and Maryland. 

The term " North " as used herein includes all of the territory of 
the United States except that portion included under the term 
" South." 

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

The term " mixed dealer " as used herein includes any employer 
whose business is substantially confined to the purchase of the com- 
modities herein mentioned from peddlers and the sale thereof to 
wholesale dealers. 

Article III — Hours 

1. No employee shall work or be permitted to work in excess of 
forty (40) hours in any one week, except that: 

(a) Male workers on outdoor work only shall be permitted to 
work not to exceed forty-eight (48) hours in any one week, provided, 
that they shall average not over forty (40) hours per week in any 
twelve (12) week period. 

(b) Crane- and locomotive crews, oxygen plant operators, truck 
drivers and their helpers shall be permitted to work not to exceed 
forty-eight (48) hours in any one week. 

(c) Employees engaged in repair and maintenance work shall be 
permitted to work not to exceed forty-four (44) hours in any one 
week. 

(d) Office employees receiving less than thirty-five ($35.00) dol- 
lars per week shall be permitted to work not to exceed forty-eight 
(48) hours in any one week, provided that they shall average not 
over forty (40) hours per week in any twelve (12) week period. 

(e) The maximum hours fixed in this Section above shall not 
apply to employees in an executive, supervisory, or managerial ca- 
pacity receiving thirty-five ($35.00) dollars or more per week, outside 
salesmen, outside buyers, and watchmen. 



2. The maximum hours fixed in the foregoing Section shall not 
apply to any emploj^ee on emergency maintenance or emergency 
repair work involving breakdowns or protection of life or property, 
but in any such special case at least one and one-third times his nor- 
mal rate shall be paid for hours worked in excess of the maximum 
hours herein provided. 

3. Whenever any " member of the Trade " employs the services 
of members of his family, all such persons must be regarded as 
employees, and shall be subject to all provisions contained in this 
Code affecting employees of " members of the Trade. 1 ' 

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

5. No employee shall work, or be permitted to work more than 
six days in any seven day period. 

Article IV — Wages 

1. The minimum wage that shall be paid by employers to any 
of their employees in the Trade shall be at the following rate : 



North 



South 



Male labor, per hour..- 
Female labor, per hour. 



$0. 32H 
.27^ 



$0.27^ 
• 22H 



(a) These differentials shall be based on substantially different 
employment, and 

(b) Female employees performing substantially the same work 
as male employees shall receive the same rates of pay as male 
employees. 

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

3. The weekly rate of pay for employment now in excess of the 
minimum wages hereby provided shall not be reduced (notwith- 
standing that the hours worked in such employment may be hereby 
reduced) and the pay for such employment shall be increased by an 
equitable readjustment of all pay schedules. 

4. Six months after the effective date the minimum wage rates 
and maximum hours shall be reconsidered. The several Code Au- 
thorities shall cooperate during the six months period following 
the effective date of this Code to study and make recommendations 
with reference to adjustments in minimum wages and maximum 
hours, and with respect to health and safety. 

Article V — General Labor Provisions 

1. No person under 16 years of age shall be employed in the Trade, 
nor anyone under 18 years of age at operations or occupations haz- 
ardous in nature or detrimental to health. The Code Authority 
for each commodity shall submit to the Administrator before June 
1, 1934, a list of such occupations. In any State an employer shall 



8 

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, show- 
ing that the employee is of the required age. 

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

3. Xo employee and no one seeking employment shall be required 
as a condition of emploj-ment to join any company union or to refrain 
from joining, organizing, or assisting a labor 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 " members of the Trade " shall comply with 
any laws of such State imposing more stringent requirements on 
employers regulating the age of employees, wages, hours of work, or 
health, fire or general working conditions than under the Code. 

G. Employers shall not reclassify employees or duties of occupa- 
tions performed b} T employees or use any other subterfuge so as to 
defeat the purposes of the Act. 

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

8. If any " member of the Trade " shall contract with another for 
the performance of work or service included within the Trade, such 
" member of the Trade " shall be liable for any violation of the Code 
on the part of the party performing such work or service. 

Article VI — Administration 

1. There shall forthwith be constituted the following Code Author- 
ities : 

(a) The Code Authority for the Scrap Iron and Steel Trade shall 
include 15 individuals, to be selected as follows: 10 individuals 
shall be selected by the Board of Directors of the Institute of Scrap 
Iron and Steel, from among the members of the scrap iron and steel 
trade; 5 individuals shall be selected to represent mixed dealers 
and/or other interests in a manner to be prescribed or approved by 
the Administrator. 

(b) The Code Authority for the Nonferrous Scrap Metal Trade 
shall include 15 individuals, to be selected as follows : 10 individuals 
shall be selected by the Executive Committee of the Secondary Metal 
Institute, a division of the National Association of Waste Material 
Dealers, Inc., from among the members of the nonf errous scrap metal 
trade; 5 individuals shall be selected to represent mixed dealers 
and/or other interests in a manner to be prescribed or approved by 
the Administrator. 

(c) The Code Authority for the Wool Stock Trade shall include 
15 individuals, to be selected as follows: 10 individuals shall be 
selected bv the Board of Directors of the Wool Stock Council, from 



9 

among the members of the Wool Stock Trade, at least one of whom 
shall be a grader of wool stock not a member of the Council; 5 
individuals shall be selected to represent mixed dealers and/or other 
interests in a manner to be prescribed or approved by the 
Administrator. 

(d) The Code Authority for the Scrap Rubber Trade shall include 
7 individuals from the Scrap Rubber Trade to be selected by mem- 
bers of the Scrap Rubber Trade, directly or by associations, 
who agree in writing to sustain their • reasonable share of the 
expenses of administering this Code; in a manner to be prescribed 
or approved by the Administrator. In the selection of the indi- 
viduals to the Code Authority for the Scrap Rubber Trade members 
of the scrap rubber trade shall cooperate with the Scrap Rubber 
Institute, a division of the National Association of Waste Material 
Dealers, Inc. 

(e) The Code Authority for the Waste Paper Trade shall include 
fifteen (15) individuals from the Waste Paper Trade to be selected 
by members of the Waste Paper Trade, directty or by associations, 
who shall agree to the satisfaction of the Administrator to sustain 
their reasonable share of the expense of administering this Code; 
such selection to be in accord with a method to be prescribed or 
approved by the Administrator. 1 

(f ) The Code Authority for the Cotton Rag Trade shall include 
fifteen (15) individuals from the Cotton Rag Trade to be selected 
by members of the Cotton Rag Trade, directly or by associations, 
who shall agree to the satisfaction of the Administrator to sustain 
their reasonable share of the expense of administering this Code; 
such selection to be in accord with a method to be prescribed or 
approved by the Administrator: Provided, however, that at least 
10 individuals shall consist of packers of cotton rags for their own 
account not acting as purchasing agents for mills using cotton rags 
which have any financial investment in their business. 

(g) Code Authorities may be established for other commodities, 
when the Administrator after clue notice and hearing shall find 
that such Code Authority should properly be established, in a 
manner to be prescribed or approved by the Administrator, with 
the advice and cooperation of the Waste Trade Committee. 

(h) The Administrator, in his discretion, may appoint not more 
than three additional members, without vote, on each of the Code 
Authorities described in Section 1 of this Article and of the Waste 
Trade Committee, to represent such groups or interests or such 
governmental agencies as he may designate. 

2. Each trade association directly or indirectly participating in 
the selection of activities of the Code Authority shall : 

(a) Impose no inequitable restrictions on membership; and 

(b) Submit to the Administrator true copies of its articles of 
association, bylaws, regulations, and any amendments when made 
thereto, together with such other information as to membership, 
organization, and activities as the Administrator may deem necessary 
to effectuate the purposes of the Act. 

3. In order that the Code Authorities or any other chosen trade 
representatives shall at all times be truly representative of the Trade 

1 See paragraph 3 of order approving this Code. 



10 

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 Authorities or other 
trade representatives are not truly representative or do not in other 
respects comply with the provisions of the Act, may require an 
appropriate modification in the method of selection of the Code 
Authorities or other chosen trade representatives. 

4. " Members of the Trade " shall be entitled to participate in 
and share the benefits of the activities of the Code Authorities and 
to participate in the selection of the members thereof by assenting to 
and complying with the requirements of this Code and agreeing in 
writing to sustain their reasonable share of the expenses of its 
administration. The reasonable share of the expenses of the admin- 
istration shall be determined by the Code Authorities, 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. 

5. Nothing contained herein shall prevent direct access to the 
Administrator on the part of any organized group in the Trade. 

6. The Code Authorities shall have the following duties and 
powers to the extent permitted by the Act. 

(a) To make rules and regulations necessary for the administra- 
tion of this Code, within their respective Trades. 

(b) To make investigations as to the functioning and observance 
of any provisions of this Code at its own instance, or on complaint 
by any person affected, and to report the same to the Administrator. 

(c) To require, from time to time, from each person in their 
respective Trades, reports in such form and containing such infor- 
mation as the Administrator may prescribe, in order that he may 
be kept informed with respect to the observance of this Code. Ex- 
cept as otherwise provided in the Act, any reports filed in accord- 
ance with these provisions 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 their respective Trades, as they 
may develop, which will tend to effectuate the operation of the 
provisions of this Code. Such recommendations, when approved 
by the Administrator, after such notice and hearing as he shall 
specify, shall have the same force and effect with respect to the 
particular Trade as the other provisions of this basic Code. Such 
recommendations may include recommendations for setting up 
standards of health and safety for employees in the Trade. 

(e) To submit supplementary Fair Trade Practices for their 
respective Trades which, when approved by the President, shall 
ha\;e the same force and effect as this basic Code. 

7. With a view to coordinating the wages, hours, and other labor 
provisions of this Code in relation to each of the Trades, a Waste 
Trade Committee is hereby established, to consist of one representa- 
tive to be appointed by each of the Code Authorities herein pro- 
vided for, or authorized hereafter. The powers of the Waste Trade 
Committee shall, with respect to commodities which have a sepa- 
rate Code Authority, be restricted to those necessary to effectively 
obtain coordination of the wages, hours, and other labor provisions 



11 

of this basic Code subject to approval of the Administrator, all 
other powers and duties of administration being reserved for the 
respective Code Authorities. 

8. If the Administrator shall determine that any action of a Code 
Authority or any agency thereof, or any locally chosen representa- 
tives of the Trade is unfair or unjust or contrary to the public 
interest, the Administrator may require that such action be sus- 
pended for a period of not to exceed thirty days to afford an op- 
portunity for investigation of the merits of such action and further 
consideration by such Code Authority or agency or any locally 
chosen representatives of the Trade, pending final action, which 
shall be taken only upon approval by the Administrator. 

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

Article VII — Trade Practices 

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

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

2. Commercial Bribery. — No " member of the Trade " shall give, 
permit to be given, or directly offer to give, anything of value for the 
purpose of influencing or rewarding the action of any employee, 
agent, or representative of another in relation to the business of the 
employer of such employee, the principal of such agent or the repre- 
sented party, without the knowledge of such employer, principal or 
party. This provision shall not be construed to prohibit free and 
general distribution of articles commonly used for advertising except 
so far as such articles are actually used for commercial bribery as 
hereinabove defined. 

3. Interference with Contractual Relations. — Maliciously inducing 
or attempting to induce the breach of an existing oral or written con- 
tract between a competitor and his customer or source of supply, or 
interfering with or obstructing the performance of any such con- 
tractual duties or services. 

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

Article VIII — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions of subsection (b) of Section 10 of the National Industrial 
Kecovery Act, from time to time to cancel or modify any order, 



12 

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

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

Article IX — Monopolies. Etc. 

Xo 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 

The provisions of this Code shall not apply to charitable institu- 
tions during the six months study period provided in Article IV, 
Section 4 nor thereafter if they be specifically exempted by the 
Administrator. 

Article XI — Effective Date 

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



Approved Code No. 330. 
Registry No. 1632-27. 



O 



Approved Code No. 331 
CODE OF FAIR COMPETITION 

FOR THE 

BULK DRINKING STRAW, WRAPPED DRINKING 
STRAW, WRAPPED TOOTHPICK, AND WRAPPED 
MANICURE STICK INDUSTRY 

As Approved on March 14, 1934 



ORDER 



Approving Code of Fair Competition for the Bulk Drinking 
Straw, Wrapped Drinking Straw, Wrapped Toothpick, and 
Wrapped Manicure Stick 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 Bulk Drinking Straw, Wrapped Drinking 
Straw, Wrapped Toothpick, and Wrapped Manicure Stick 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 upon condition 
that : 

(1) 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 ; 

(2) the provision in Article III, Section 1, Subsection (d) that 
employees may work 48 hours in any one Aveek shall be limited to 
periods of seasonal or peak demand not exceeding twelve weeks in 
any year. 

46472° 425-74 34 (13) 



14 

(3) Section 13 of Article VI be and it is hereby eliminated. 

(4) Section 9 of Article VI shall not be construed to deny informa- 
tion concerning filed prices to any person having an interest therein. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
George L. Beery, 

Div ision A dmin is tra tor. 

Washington, D.C., 

March 1L 198k 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report of the hearing on the Code of Fair Compe- 
tition for the Bulk Drinking Straw, Wrapped Drinking Straw, 
Wrapped Toothpick and Wrapped Manicure Stick Industry, con- 
ducted in Washington on January 19, 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 in peak seasons to be paid for 
as overtime. The usual exceptions are made in regard to non-pro- 
ductive 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 350 per hour for females. Office employees will 
receive a minimum wage of $16.00 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 200 persons and in 
June 1933 about 125 persons. Based on the average hours worked 
in June 1933 and to maintain the level of production of that period, 
the proposed hour schedule of the Code would require an increased 
employment of approximately 11%. 

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

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 

(15) 



16 

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will 
provide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanction and supervision, 
by eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restrictions of production (except as may be 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 industr}^ 

(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 Industry. 

(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. 
March 14, 1934. 



CODE OF FAIR COMPETITION FOR THE BULK DRINK- 
ING STRAW, WRAPPED DRINKING STRAW, WRAPPED 
TOOTHPICK AND WRAPPED MANICURE STICK INDUS- 
TRY 

To effectuate the policy of Title I of the National Industrial 
Recovery Act, the following is hereby established as a Code of Fair 
Competition for the 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 " : Division A. The manufacture of bulk drinking 
straws. Division B. The business of wrapping drinking straws, 
wrapping toothpicks, and/or wrapping manicure sticks. 

" Member " Includes natural persons, partnerships, corporations, 
associations, trustees, trusts, trustees in bankruptcy, receivers, or 
other forms of enterprise, engaged in such Industry or any division 
thereof. 

" Employee " Anyone employed in processing the product of the 
Industry or any division thereof and in labor operations incident 
thereto. 

" Distributor or Sales Agent " Anyone who either purchases for 
sale primarily to jobbers or acts as agent for the member in sales 
primarily to jobbers, receiving a discount or a commission based 
upon dealing primarily with jobbers. 

" Broker " : Division A. Anyone who acts as agent for the member 
in sales to jobbers receiving a commission based upon dealing exclu- 
sively with jobbers. Division B. Anyone who acts as agent for 
the member in sales to retailers, retail-consumers, or jobbers, receiv- 
ing a commission based upon the manufacturers respective sales 
price. 

" Jobber " A wholesale dealer, buying organization, buying asso- 
ciation, buying office, or purchasing company, who purchases and/or 
stocks merchandise for sale to retailers or retail-consumers, or who 
directly or indirectly receives compensation for his or its services 
from other jobbers. 

" Retail-Consumer " Any purchaser or any organization or person, 
who receives compensation for his services in any form from such 
purchaser, who purchases the products of the Industry and serves 
them or gives them away without specific charge for the same. 

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

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

(17) 



18 
Article II — Organization and Administration 

Section 1. There shall forthwith be created a Code Authority of 
the Industry. It shall consist of five elected persons together with 
such person or persons as may be designated by the Administrator. 
The person or persons so designated shall have no vote and shall 
serve without compensation from the Industry. 

Section 2. The five elected persons of the Code Authority shall be 
elected as follows: 

(a) Two of such persons shall be elected by a majority vote of 
the members of the Industry on the basis of volume of sales, each 
member being entitled to a number of votes based upon the average 
yearly sales during the preceding five fiscal years as follows : 

(1) Each member with average sales of less than 10,000 cases 

of straws a year shall be entitled to one (1) vote. 

(2) Each member with average sales of above 10,000 cases and 

"less than 20,000 cases shall be entitled to two (2) votes. 

(3) Each member with average sales of above 20.000 cases and 

less than 40.000 cases shall be entitled to four (4) votes. 

(4) Each member with average sales of above 40.000 cases shall 

be entitled to eight (8) votes. 
In each of the above instances a case shall consist of 25,000 straws, 
whether packed in bulk or wrapped. 

(b) Two of such persons shall be elected by a majority vote of 
the members of the Industry according to number, each member 
being entitled to one (1) vote. 

(c) The four members so elected shall select the fifth person. 
The term " fiscal year " as used herein shall mean the twelve month 

period beginning October 1 and ending September 30 following. 

Section 3. In order that the Code Authority shall at all times be 
truly representative of the Industry, the Administrator may pre- 
scribe such hearings as he may deem proper and thereafter, if he 
shall find the Code Authority is not truly representative of the 
Industry, he may require an appropriate modification of the method 
of selection of the Code Authority. 

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 Administrator 
may require that such action be suspended to afford an opportunity 
for investigation of the merits of such action and further consid- 
eration 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 inten- 
tion 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 who 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 which are or appear to be contrary to the policy of the Act 



19 

or which tend or may tend to render ineffective this 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 appli- 
cation of the provisions of the Act or of this Code. 

Section 8. 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 anyone 
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 anyone for any action or omission to act under the Code, 
except for his own willful misfeasance or nonfeasance. 

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 schedules : 

(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: 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-live (45) hours in any one week shall be paid for as 
not less than time and one third. 

(d) All other laborers, mechanical workers, or artisans employed 
in any plant, mill, or factory or on work connected with the opera- 
tion of such plant, mill, or factory : Eight (8) hours in any one day 
and forty (40) hours in any one week, provided, however, that 
these maximum limits may be exceeded for any reason at any time, 
provided that all time worked in excess of the maximums prescribed 
shall be paid for as not less than time and one third, and provided, 
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 ($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. 1 



1 See paragraph 2 (2) of order approving this Code. 



20 

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 involv- 
ing protection of life or property, provided, however, that all time 
w T orked 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 employee, other 
than office or clerical employees, employed in any plant, mill, or fac- 
tory, or on work connected with the operation of any such plant, mill, 
or factory shall be as follows : 
Male labor, 40^ per hour 
Female labor, 35£ per hour 
Section 2. The minimum rate of wage of any office or clerical 
employee shall be as follows: 

(a) Full-time employees $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 40c per hour. 

Section 3. This Article establishes a minimum rate of pay which 
shall apply irrespective of whether an employee is actually compen- 
sated on 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 
emplo}-ees. The Code Authority shall, within ninety (90) days 
after the effective date of this Code, file with the Administrator a 
description of all occupations in the Industry in which both men 
and women are employed. 

Section 5. The wage rates of all employees shall be equitably re- 
adjusted but in no case shall they be decreased. 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 for his approval of the method of such 
adjustments. 

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 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. 



21 

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) yestrs 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 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 emploj^ee 
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 pur- 
pose 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 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 or insurance or fire 
protection, than are imposed by this Code. 

Section 4. No employer shall reclassify employees or duties of 
occupations performed or engaged 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 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. 

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 prod- 
uct of the Industry in homes shall be prohibited. 



22 
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. 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 products of the Industry shall be sold upon an open 
price plan of selling. 

Section 3. On or before the effective date of this Code, every mem- 
ber 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. 

Section 4. All such original schedules shall become effective on 
the effective date of this Code. All such schedules shall be in such 
form as the Code Authority shall prescribe and shall contain all in- 
formation 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. 

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 schedule without 
substituting a new schedule therefor shall be deemed to have filed a 
schedule conforming in respect to price and terms of sale with the 
schedule at any time thereafter on file which states the lowest price 
and the most favorable terms. Subsequent to original schedules 
above provided for, any schedule or notice filed hereunder shall be- 
come effective five (5) days after the date of filing, provided, how- 
ever, 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 promptly supply all members 
of the Industry, who manufacture any particular product, with copies 
of all schedules, revised schedules, and notices of withdrawal, which 
pertain to such product. Immediately upon receipt of information 
relative to the withdrawal of a price for any product, any member 
may file notice of withdrawal of his own price for the same product 
effective as of the same date as the notice of withdrawal of such other 
member. Immediately on receipt of information that a schedule 
then on file has been revised, or that a new schedule has been filed, 
any member may file a revised schedule conforming as to price and 
terms to the schedule of such other member and effective on the same 
date, or 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 de- 



23 

termined in the manner provided in Section 10 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. 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 as provided in 
this Article. 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, shall sell such product at a lower price or on terms more favor- 
able 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 person 
or persons entitled to them, copies of any price schedules which may 
be filed. Any such price schedules shall be made available to such 
entitled person at the same time they are sent to members. 2 3 

Section 10. 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 11. For the purpose of determining whether Section 7 
hereof has been complied with, every member shall upon the request 
of the Code Authority furnish a designated agency of the Code 
Authority in regard 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. 

Section 12. Nothing herein contained shall be construed to prevent 
the disposition of distress merchandise required to be sold to liqui- 
date a defunct or insolvent business or of discontinued lines, damaged 
goods or seconds, in such manner, at such prices and on such terms 
and conditions as the Code Authority and the Administrator may 
approve. 

Section 13. Any member contracting for the distribution of any 
product of the Industry with a distributor or sales agent, who sells 
such product both to jobbers and retail-consumers, shall provide in 
said contract that such distributor or sales agent, when making sales 
to retail-consumers, shall not undersell jobbers. If after due investi- 
gation the Code Authority shall find that such provision has been 
violated, the member whose distributor or sales agent has been found 
to have violated said provision shall not give to such distributor or 
sales agent any discount off his published jobber price. 4 

2 See paragraph 2 (1) of order approving this Code. 

8 See paragraph 2 (4) of order approving this Code. 

11 Deleted as per paragraph 2 (3) of order approving this Code. 



24 
Article VII — Selling Below Reasonable Cost 

Section 1. When the Code Authority determines that an emer- 
gency exists in this Industry and that the cause thereof is destruc- 
tive price cutting, such as to render ineffective or seriously endanger 
the maintenance of the provisions of this Code, the Code Authority 
may cause to be determined the lowest reasonable cost of the prod- 
ucts of the Industry, such determination to be subject to such notice 
and hearing as the Administrator may require. The Administrator 
may approve, disapprove, or modify the determination. There- 
after, during the period of the emergency, it shall be an unfair trade 
practice for any member of the Industry to sell or oifer to sell any 
products of the Industry, for which the lowest reasonable cost has 
been determined, at such prices or upon such terms or conditions 
of sale that the buyer will pay less therefor than the lowest reason- 
able cost of such products. 

Section 2. When it appears that conditions have changed the 
Code Authority, upon its own initiative or upon the request of any 
interested party, shall cause the determination to be reviewed. 

Article VIII — 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 
accountant 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 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 another member. No such data or information shall be published 
except in combination with other similar data and in such manner as 
to avoid the disclosure of confidential information. The Code Au- 
thority shall arrange in such manner as it may determine for the 
current 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. 



25 

Article IX — 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 X — 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 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 
endanger 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 method of choosing 
such 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, and after such hear- 
ing as he may prescribe, shall have the same force and effect as 
other provisions of this Code. 

Article XI — 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 
description, 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 



26 

relation to the business of the employer of such employee, the princi- 
pal 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 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) Xo 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. 

(h) As applicable only to the products of Division A of the 
Industry : 

(1) Xo member shall take any orders or make any sales contract 
for a period exceeding six (6) months and in no case with a shipping 
date, initial or extended, beyond September 30 next occurring. 

(i) The following additional provisions shall apply only to the 
products of Division B of the Industry: 

(1) Members shall make a specific charge for sketches, drawings 
and printing plates, excepting where the customer has had specially 
imprinted goods before from a member. 

(2) Xo member shall take an order or contract to cover require- 
ments for a period of more than twelve months. 

Article XII — 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 this 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- 
stance 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 Xo. 331. 
Registry No. 407-08. 



o 



Approved Code No. 332 
CODE OF FAIR COMPETITION 

FOR THE 

LADIES' HANDBAG INDUSTRY 

As Approved on March 14, 1934 



ORDER 



Approving Code of Fair Competition for the Ladies' Handbag 

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 1C, 1933, for approval of a Code of 
Fair Competition for the Ladies' Handbag 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 Com- 
petition be and it is hereby approved ; provided : 

1. That Section 2 of Article IV be stayed until such time as the 
Code Authority shall present to the Administrator a definition of 
the term " semi-skilled employee ", which receives the approval of 
the Administrator. 

2. That, in addition to other members of the Code Authority, there 
may be appointed by the Administrator or elected by such method 
as he may prescribe, in his discretion, not more than three additional 
members with voting privilege to be chosen from members of the 
industry who are not, in the opinion of the Administrator, adequately 
represented on the Code Authority. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 
Approval recommended : 
A. D. Whiteside, 

Division Admin htrator. 

Washington. D.C., 

March 14, 1934. 

4(5473° 4125-73 34 (27) 



REPORT TO THE PRESIDENT 

The President. 

The White House. 
Sir : This is a report of the Hearing on the Code of Fair Compe- 
tition for the Ladies' Handbag Industry conducted in Washington 
on December 8, 1933, in accordance with the Provisions of the 
National Industrial Recovery Act. 

PROVISIONS FOR HOURS AND WAGES 

The Code limits the hours of labor for all employees, except outside 
salesmen and persons employed in a managerial or supervisory 
capacity earning not less than thirty-five dollars ($35.00) per week, 
to forty (40) hours per week. Shipping, clerical and office employees 
are limited to forty (40) hours per week, averaged over a one month 
period. Provision is also made for the appointment of a Special 
Committee to determine the extent to which the forty (40) hour 
week tends to eliminate unemployment. This Special Committee 
will report to the Administrator on or before May 1st its findings, 
and simultaneously it will make whatever recommendations it may 
feel necessary, keeping in mind the problems of the industry, for the 
relief of unemployment. 

The minimum wage provided is thirty-five cents (350) per hour, 
or fourteen dollars ($14.00) per week, for unskilled workers, and 
forty-five cents (45<£) per hour, or eighteen dollars ($18.00) per 
week, for semi-skilled workers. The Administrator may. under 
exceptional circumstances, and upon such conditions as he may pre- 
scribe, permit the employment of learners at rates below the basic 
minimum. Handicapped workers may also be employed at rates 
below the basic minimum, but only under strict regulation. 

ECONOMIC EFEECT OF THE CODE 

During the year 1933 the average number of persons employed in 
the Ladies Handbag Industry was about twelve thousand (12.000). 
The average number of hours worked per week during the year was 
forty-eight (48). By reducing the maximum hours to forty (40), 
employment will probably be increased by from twelve (12%) to 
fifteen (15%) percent, and, other things remaining equal, the indus- 
try will probably absorb, as a direct result of the operation of the 
Code, somewhere between fifteen hundred (1500) and two thousand 
(2000) additional employees. 

Practically no information regarding earnings are available, and 
in consequence no estimate can be made of the effect of the minimum 
wages herein provided. If for no other reason, however, there will 
be a significant increase because of the increase of employment above 
referred to. Total payrolls will be increased by at least twelve (12%) 
or fifteen (15%) percent. 

(28) 



29 



FINDINGS 



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

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign com- 
merce which tend to diminish the amount thereof and will provide 
for the general welfare by promoting the organization of industry for 
the purpose of cooperative action among the trade groups, by induc- 
ing and maintaining united action of labor and management under 
adequate governmental sanctions and supervision, by eliminating 
unfair competitive practices, by promoting the fullest possible utili- 
zation of the present productive capacity of industries, by avoiding 
undue restriction of production (except as may be temporarily re- 
quired), by increasing the consumption of industrial and agricultural 
products through increasing purchasing power, by reducing and re- 
lieving 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 limi- 
tating Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant asso- 
ciation is an industrial association truly representative of the afore- 
said Industry; and that the said association imposes no inequitable 
restrictions on admission to membership therein. 

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

(e) The Code is not designed to and will not eliminate small enter- 
prises 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. 
March 14, 1934. 



CODE OF FAIR COMPETITION FOR THE LADIES' 
HANDBAG 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 Ladies' Handbag Industry, and shall be 
the standard of fair competition for such industry and shall be 
binding upon every member thereof. 

Article II — Definitions 

1. The term " industry " as used herein includes the manufacture 
of ladies ', misses ', and children's handbags, poeketbooks, and 
purses, manufactured of any material of any kind or nature. The 
term " industry " shall not include, however, the manufacture of 
handbags, poeketbooks, purses and mesh bags manufactured in 
whole of metal. 

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

3. The term " employer " as used herein includes anyone for whose 
benefit or on whose business such an employee is engaged. 

4. The term " member of the industry " as used herein includes 
anyone engaged in the industry, either as an employer or on his 
own behalf and either as manufacturer, manufacturing jobber or 
contractor. 

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. 

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 in excess 
of eight (8) hours in any twenty-four (24) hour period. 

2. No person employed in shipping, clerical, or office work, unless 
he is employed in a managerial or executive capacity and earns not 
less than thirty-five dollars ($35.00) per week, shall be permitted to 
work in excess of forty (40) hours per Aveek averaged over any one 
(1) month period. 

3. The provisions of this Article shall not apply to outside 
salesmen. 

4. Subject to the approval of the Administrator, the Code Author- 
ity shall designate the hour before which work shall not begin and 
the hour after which work shall not continue. In the discretion of 

(30) 



31 

the Code Authority such opening and closing hours need not be 
uniform throughout the country, but may be varied to meet varying 
needs and conditions. 

5. No member of the industry shall engage any employee for any 
time which when totaled with that already performed with other 
member or members of the industry exceeds the maximum permitted 
herein. 

Article IV — Wages 

1. Except as hereinafter provided, no employee shall be paid at 
less than the rate of thirty-five cents (35^) per hour. 

2. No semi-skilled employee engaged in cutting, framing, paring, 
pocketbook making and/or operating (except lining operating, 
cementing and/or pasting) employed in the manufacture of any of 
the products covered by the provisions of this Code, made of any 
materials other than imitation leather, shall be paid at less than the 
rate of forty-five (450) cents per hour. 1 

3. The Administrator may, under exceptional circumstances, and 
upon such conditions as he may prescribe, permit a member of the 
industry to employ learners at rates below the minimum wage herein 
established. 

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

5. Subject to review by the Code Authority and by the Adminis- 
trator no employer shall reduce the weekly compensation for employ- 
ment now in excess of the minimum wages established herein, not- 
withstanding that the hours worked in such emplo} 7 ment may hereby 
be reduced. 

6. The Administrator ma} 7 , upon recommendation by the Code 
Authority and after full study and investigation by the Code Author- 
ity, and after such notice and hearing as he shall prescribe, estab- 
lish, as a part of this Code, such basic rates for the more skilled 
classes of employees as may be necessary to further effectuate the 
purposes of the Act. 

7. A person whose working capacity is limited because of age or 
physical or mental handicap may be employed at a wage below the 
minimum established by this Code under the following conditions : 

(a) That they shall be paid proportionately no less than the other 
employees in the same factory receive for similar work, but in no 
case shall their compensation amount to less than seventy percent 
(70%) of the amount required by the minimum wage provisions of 
this Code. 

(b) That the employer shall at once prepare and transmit to the 
Code Authority a list of such excepted persons stating name, class 
of occupation, wage rate, length of service and reason for exception. 
This list shall be revised up-to-date once each month and transmitted 
to the Code Authority. 

(c) The proportion of excepted persons to total employees at any 
time shall not exceed the proportion of such employees on the pay 
roll during the week of July 15, 1933. 



*See paragraph 2 (1) of order approving this Code. 



32 

(d) The Code Authority shall have the right to investigate and 
disallow any such claims for exception subject to review by the 
Administrator upon appeal by an employer or employee. 

(e) The Code Authority shall report to the Administrator within 
three (3) months and from time to time thereafter as to the effect 
of the operation of this provision, both generally and in cases of 
individual hardship. 

Article V — General Labor Provisions 

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

2. Emplo} 7 ees shall have the right to organize and bargain col- 
lectively, through representatives of their own choosing, and shall be 
free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self -organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

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

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

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

6. Every employer shall provide for the safety and health of his 
employees at the place and during the hours of their employment. 
The Code Authority shall recommend to the Administrator mini- 
mum standards for the safety and health of employees in this 
industry which minimum standards, upon the approval of the 
Administrator, shall become effective provisions of this Code. 

7. No provision in this Code shall supersede any law within any 
State which imposes more stringent requirements on employers as 
to age of employees, wages, hours of work, or as to safety, health, 
or sanitary regulations, or insurance, or fire protection, or general 
working conditions, than are imposed by this Code. 

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

9. No provision of this Code shall modify established practices 
or privileges as to vacation periods, leaves of absences, or temporary 
absences from work heretofore granted to office employees. 

10. No member of the industry shall give out work to be per- 
formed in any home or dwelling place, except that this prohibition 
shall not apply to handbeading, handcrocheting, or handembroid- 
ering, and except that hand sewing at home shall be permitted until 
July 1, 1934, but shall not be permitted thereafter. The Code 
Authority shall, in conjunction with such state governments and 
such departments of the Federal Government and such other agencies 
as the Administrator may designate, study and investigate the 
problem of homework in this industry and shall make to the 



S3 

Administrator recommendations for the effective and appropriate 
control of such homework as is herein permitted. Should the 
Administrator find it to the best interest of the industry or to the 
best interests of labor or otherwise necessary to further effectuate 
the purposes of the Act, he may further restrict, or wholly prohibit, 
the practice of homework in this Industry. 

11. Any person who shall at any time manufacture any article or 
articles subject to the provisions of this Code shall be bound by all 
the provisions of this Code as to all employees engaged in whole or 
in part, in such manufacture. In case any employee shall be 
engaged partly in such manufacture and partly in the manufacture of 
goods of another character, this Code shall apply to such portion of 
such employee's time as is applied to the manufacture of articles 
subject to the provisions of this Code. 

12. No member of the industry shall give out work on a contract 
basis unless such work is given out with a written agreement that 
the contractor and all other parties to such contract shall comply 
with all the pertinent provisions of this Code. The Code Authority 
shall draw up a uniform agreement which shall be used wherever 
and whenever work is given out on a contract basis when such 
agreement is approved by the Administrator. 

Article VI — Administration 

1. There shall forthwith be constituted a Code Authority consisting 
of: 

(a) Eleven (11) 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. 2 

(b) On 3 (1) member, to be appointed by the Administrator on the 
nomination of the Labor Advisory Board of the National Kecovery 
Administration. 

(c) Such additional members, without vote, not to exceed three as 
the Administrator may appoint to represent such groups or interests 
or such governmental agencies and for such periods as he may 
designate. 

2. The representatives of the Industry shall be selected in the fol- 
lowing manner : 

(a) Five (5) members shall be selected by the Associated Handbag 
Industries of America, Inc. 

(b) Two (2) members shall be selected by the National Association 
of Ladies' Handbag Manufacturers; 

(c) Two (2) members shall be selected by the Industrial Council 
of Leather Goods Manufacturers, Inc.; 

(d) One (1) member shall be selected by the Midwest Handbag 
and Small Leather Wares Association, Inc. ; 

(e) One (1) member shall be selected by the Ladies' Handbag 
Manufacturers of the Pacific Coast. 

3. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 



See paragraph 2 (2) of order approving this Code. 



34 

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

4. In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with the 
provisions of the Act, the Administrator may provide such hearings 
as he may deem proper, and 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 ai^one for any action or omission to act under the Code, except 
for his willful misfeasance or nonfeasance. 

G. Members of the Industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority and to par- 
ticipate in the selection of the members thereof by assenting to and 
complying with the requirements of this Code and sustaining their 
reasonable share of the expenses of its administration. Such reason- 
able share of the expenses of administration shall be determined by 
the Code Authority subject to r.eview by the Administrator on the 
basis of volume of business and/or such other factors as may be 
deemed equitable. 

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 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. 

8. The Code Authority shall have the following further powers and 
duties, the exercise of which shall be reported to the Administrator. 

(a) To insure the execution of the provisions of this Code and 
to provide, subject to rules and regulations established by the Ad- 
ministrator, for the compliance of the industry with the provisions 
of the Act : Provided, however, that this shall not be construed to 
deprive duly authorized governmental agencies of their power to 
enforce the provisions of this Code or of the Act. 

(b) To adopt a constitution, by-laws and rules and regulations 
for its procedure and for the administration and enforcement of this 
Code, and to submit the same to the Administrator for his ap- 
proval, 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 effectuate the purposes of the Act. 

(c) To obtain from members of the industry such information and 
reports as are required for the administration of the Code, and in 
addition to information required to be submitted to any Code Au- 



35 

thority all or any of the persons subject to this Code shall furnish 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act, to such 
Federal and State agencies as the Administrator may designate; 
nor shall anything in any code relieve any person of existing obli- 
gations to furnish reports to government agencies. 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 President. 

(d) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein and to pay such trade associations and agencies the cost 
thereof, provided that nothing herein shall relieve the Code Author- 
ity of its duties or responsibilities under this Code and that such 
trade associations and agencies shall at all times be subject to and 
comply with the provisions hereof. 

(e) To make recommendations to the Administrator for the coor- 
dination of the administration of this Code with such other codes, if 
any, as may be related to the Industry. 

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

(g) To establish or designate an agency on planning and fair 
practice which shall cooperate with the Code Authority in devel- 
oping fair trade practices and industrial planning, including the 
regularization and stabilization of employment for the industry. 

(h) To initiate, consider, and make recommendations for the mod- 
ification 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. 

(i) To recommend provisions for a uniform cost and/or account- 
ing system for each division of the industry which, upon approval 
by the Administrator and after such notice of hearing as shall be 
prescribed, shall become a part of this Code. Any member of the 
industry shall have the privilege of continuing any cost and/or 
accounting system now in use, or of instituting any cost and/or 
accounting system suitable and adapted to his particular needs, pro- 
vided that the selling price arrived at by the use of any such system 
shall not be less than the cost of that particular article which would 
be arrived at by the use of the uniform cost and/or accounting sys- 
tem recommended by the Code Authority and approved by the Ad- 
ministrator. Any such system approved by the Administrator shall 
involve only such elements of cost as may be reasonably necessary 
to assist in the administration and enforcement of this Code. 

(j) To undertake, in conjunction with the Code Authorities of 
related industries, an investigation of style piracy and to recommend 
to the Administrator, within a reasonable period of time, appro- 
priate means for the regulation and control of style piracy, which 
recommendations, upon the approval of the Administrator and after 
such notice and hearings as he may prescribe, shall become effective 
provisions of this Code. 



36 

Article VII — XRA Labels 

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

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

3. Each label shall bear a registration number especially assigned 
to each member of the industry by the Code Authority, and shall 
remain attached to all such merchandise when sold to the retail 
distributor. 

4. Any and all members of the industry may apply to the Code 
Authority for a permit to purchase and use such NRA labels, which 
permit shall be granted to them, but only if, and so long as, they 
comply with this Code. The Code Authority shall not refuse the 
issuance of labels to any member of the industry on the ground of 
noncompliance, unless said Code Authority is, at the time of the 
refusal prepared to certify to the Administrator a prima facie case 
of noncompliance with this Code, or with valid rules and regulations 
of the Code Authority by the member of the industry. In the event 
the Code Authority so refuses the issuance of said labels, a complete 
file showing the alleged noncompliance by such member of the indus- 
try shall be certified not later than the day following said refusal to 
the Administrator for action by the National Compliance Director, 
or by such governmental or administrative agency as the Admin- 
istrator may direct. 

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

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

7. The application of the provisions of this Article shall at all 
times be subject to rules and regulations issued by the Administrator 
in respect thereto. 



37 
Article VIII — Trade Practice Rules 

1. No member of the industry shall publish advertising (whether 
printed; radio, display or of any other nature), which is misleading 
or inaccurate in any material particular, nor shall any member, in 
any way misrepresent any goods (including but without limitation 
its use, trade-mark, grade, quality, quantity, origin, size, substance, 
character, nature, finish, material content or preparation) or credit 
terms, values, policies, services, or the nature or form of the business 
conducted. 

2. No member of the industry shall use selling methods or credit 
terms which tend to deceive or mislead the customer or prospective 
customers. 

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

4. No member of the industry shall brand or mark or pack any 
goods in an}^ manner which is intended to or does deceive or mislead 
purchasers with respect to the brand, grade, quality, quantity, origin, 
size, substance, character, nature, finish, material content or prepara- 
tion of such goods. 

5. No member of the industry shall publish advertising which 
refers inaccurately in any material particular to any competitors or 
their goods, prices, values, credit terms, policies or services. 

6. No member of the industry shall publish or circularize unjusti- 
fied or unwarranted threats of legal proceedings which tend to harass 
or have the effect of harassing competitors or intimidating their 
customers. 

7. No member of the industry shall give, or permit to be given any 
secret payment or allowance of rebate, refund, commission, credit, 
or unearned discount, whether in the form of money or otherwise, 
or the secret extension to secret purchasers of special services or 
privileges not extended to all purchasers on like terms and conditions. 

8. No member of the industry shall ship commodities on consign- 
ment or memorandum. 

9. No member of the industry shall give, permit to be given, or 
directly offer to give anything of value for the purpose of influencing 
or rewarding the action of any employee, agent, or representative of 
another in relation to the business of the employer of such employee, 
the principal of such agent, or the represented party without the 
knowledge of such employer, principal or party. Commercial brib- 
ery provisions shall not be construed to prohibit free and general dis- 
tribution of articles commonly used for advertising except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

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



38 

11. No member of the industry shall grant cash discounts in excess 
of 3/10 E.O.M. ; anticipation may be allowed at the rate of six per- 
cent (0 r ( ) per annum. 

12. No member of the industry shall pay, directly or indirectly, 
any part of the advertising expenses of a purchaser, prospective pur- 
chaser or their agents. 

13. No member of the industry shall accept the return of any 
merchandise shipped to a purchaser, nor allow credit therefor, nor 
exchange merchandise, after the merchandise has been in the pos- 
session of the purchaser for more than seven (7) days, where the 
agreement of sale has been fully performed by such member. 

14. No member of the industry shall sell any merchandise subject 
to the provisions of this Code at a price below his own individual 
cost as computed by the uniform cost system provided in Article 
VI, Section 8 (i) of this Code when approved by the Administrator; 
provided, however, that a member of the industry may sell at a 
price below his own individual cost in order to meet the competition 
of another member who is not himself selling at a price below his 
own individual cost, computed on a like basis. This rule shall not 
apply to bona fide seasonal clearance sales nor to the sale of im- 
perfect or actually damaged or distressed merchandise; subject to 
the approval of the Administrator, the Code Authority may estab- 
lish regulations to govern such sales. 

15. No member of the industry shall dispose of distressed mer- 
chandise except upon prior notice to the Code Authority, along with 
such information as the Code Authority and the Administrator may 
prescribe. General fall competitive items shall not be sold as dis- 
tressed merchandise prior to December 26, general spring competi- 
tive items shall not be sold as distressed merchandise prior to 
Mother's Day. and general summer competitive items shall not be 
sold as distressed merchandise prior to July 4. Subject to review 
by the Administrator, the Code Authority may permit the sale of 
merchandise at periods other than those herein established. 

Article IX — Modification 

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

2. This Code, except as to the 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 ef- 
fective on approval by the President. 



Article X — Monopolies, Etc. 

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

Article XI — Price Increases 

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

Article XII — Effective Date 

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



Approved Code No. 332. 
Registry No. 236-1-01. 



O 



Approved Code No. 333 
CODE OF FAIR COMPETITION 

FOR THE 

CANVAS GOODS INDUSTRY 
As Approved on March 16, 1934 



ORDER 



Approving Code of Fair Competition for the Canvas Goods 

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 Canvas Goods 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. 65 43-A, dated December 
30, 1933, and otherwise: do hereby incorporate by reference said 
annexed report and do nnd 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 VII, Section B-i-7, insofar as they 
prescribe a waiting period between the filing with the Code Author- 
ity and the effective date of revised price lists or revised terms an.d 
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 ; fur- 
ther provided that after a period of ninety days from the effective 
date, Articles III and IV shall be reviewed upon such notice and' 
hearing as I may prescribe to determine whether revisions of said 
Articles should be made. 

FURTHER PROVIDED, that upon the approval of this Code 
there shall be established a committee composed of two representa- 

46822°^ — 425-84 34 (41) 



42 

tives appointed by the Labor Advisory Board and two representa- 
tives of the Code Authority for the Canvas Goods Industry, to study 
the labor conditions in this industry, and report to the Adniimstrator 
in regard thereto, within sixty days after the effective date of this 

Code. „ T 

Hugh S. Johnson, 

Administrator for Industrial Recovery. 

Approval recommended: 
A. D. Whiteside, 

Division Administrator* 

Washington, D.C.. 

March 16, 198b. 



KEPORT TO THE PRESIDENT 



The President, 

The 'White House. 



INTRODUCTION 



Sir: This is a report of the Hearing on the Code of Fair Com- 
petition for the Canvas Goods Industry in the United States, con- 
ducted in Washington, D.C., on Tuesday, November 28, 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 National Tent 
and Awning Manufacturers Association and the American Wholesale 
Canvas Goods Manufacturers Association, complying with the statu- 
tory requirements as representing 66 percent of the retail manufac- 
turers and 43 percent of the wholesale manufacturers in the indus- 
try respectively, and 69 percent of the volume and 75 percent of the 
volume of the two divisions of the industry respectively. 

GENERAL CHARACTERISTICS OF THE INDUSTRY 

It was brought out at the Hearing that there are two general types 
of manufacturers in the Canvas Goods Industry 

1. Those who manufacture canvas goods which are sold direct to 
the consumer. This group not only includes the manufacturing of 
canvas goods but also includes the installing, taking down, storing, 
and repairing of awnings as well as the renting of tarpaulins, tents, 
canopies and awnings and the dealing in made-to-measure awnings. 

2. Those who manufacture canvas goods for resale purposes. 
The Bureau of Census, Reports on Manufacturers for 1920, shows 

the following with regard to the size of the various establishments 
in the industry. 

Total : 

Establishments 1,002 

Wage earners (average for the year) 7,162 

Establishments employing 1 to 5 wage earners: 

Establishments 664 

Total number of wage earners 1, 951 

Establishments employing 6 to 20 wage earners: 

Establishments 268 

Total number of wage earners 2,561 

Establishments employing 21 to 50 wage earners : 

Establishments 45 

Total number of wage earners 1, 361 

Establishments employing 51 to 100 wage earners : 

Establishments 7 

Total number of wage earners 469 

Establishments employing 101 to 250 wage earners : 

Establishments 6 

Total number of wage earners 820 

(43) 



44 

This same report shows that out of the total of 1,002 establish- 
ments, 309 are corporations and 693 individuals, partnerships, etc. 
There are 4,287 wage earners employed by the corporations and 
2,875 employed by individuals, partnerships, etc. 

It further shows that in 1929 there were 476 establishments that 
have manufactured products valued from $5,000 to $19,999; 287, 
from $20,000 to $49,999; 134, valued from $50,000 to $99,999; 79 
from $100,000 to $249,999; 16. from $250,000 to $499,999; 9 from 
half a million to $999,999; and 1 establishment doing business over 
one million a year. 

The total value of the products for 1929 was $49,237,576; of 
establishments owned by corporations, $31,445,003 was produced; 
and of establishments owned by individuals, partnerships, etc., 
$17,792,573. 

The standard work week for the Industry in the past has aver- 
aged in excess of 50 hours per week. It was further pointed out 
that the Industry is a highly seasonal one, varying in different geo- 
graphical sections of the Country. In each instance, however, man- 
ufacturers are called upon to fill hurried orders in a limited period 
of time. 

For several months prior to the date of the Hearing the two 
groups in this industry had serious difficulty in getting together 
on a common ground to formulate a single Code, each group reeling 
that the necessities arising out of the particular type of business 
done by that group called tor a broad difference in certain provisions 
of their Code. 

Unfortunately, a number of meetings were held at which no agree- 
ment could be reached. After considerable work and effort, however, 
and through an unusual spirit of fairness and spirit of give and 
take, agreement was finally reached, thereby formulating a Code 
equitable to all and conforming to the purposes of the Act. 

RESUME 

It having been brought out that certain manufacturers of canvas 
goods manufacture their own canvas material under the provisions 
of the Cotton Textile Code, the minimum wages established for the 
Canvas Goods Industry are similar to those provided for in the 
Code for the Cotton Textile Industry. 

It is estimated that the number of employees will be increased 
20% by the application of the hours of labor in this Code. The 
provisions covering hours of employment in this Industry call for 
a forty (40) hour week with a maximum of forty-eight (48) hours 
a week for any ten consecutive weeks in each calendar year during 
seasonal or peak demands. 

The administrative provisions of this Code provide for a Code 
Authority to administer those provisions relating to both the retail 
and wholesale divisions of this Industry. For the administration of 
the provisions applying solely to the retail section of the Industry 
there is established a Retail Canvas Goods Code Authority. Sim- 
ilarly, for the wholesale section of this Industry there is established a 
Wholesale Canvas Goods Code Authority. There are certain general 
trade practices established which relate to the Industry as a whole. 



45 

There is established a system of open price listing based upon a r 
uniform system of cost accounting. It is stipulated, however, that 
full details concerning a uniform cost accounting system and methods 
of cost finding shall be made available to all members of the Indus- 
try selling at retail. All members of the Industry selling primarily 
at retail shall determine costs on all products sold by them in accord- 
ance with the principles of such methods. 

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- 1 
ceedings in this matter ; 

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- ; 
vide for the general welfare by promoting the organization of in-' 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practices, by promoting the fullest pos- 
sible utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standarcls 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 asso- 
ciations are industrial associations truly representative of the afore- 
said Industry; and that said associations impose no inequitable 
restrictions on admission to membership therein. 

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

(e) The Code is not designed to and will not eliminate or oppress 
small enterprises and 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, 

Administrator, 
March 16, 1934. 



CODE OF FAIK COMPETITION FOR THE CANVAS 
GOODS 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 Canvas Goods 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 " Canvas Goods Industry " or " Industry," as used 
herein, includes the manufacturing and, when done by the manufac- 
turer, the selling and/or distributing at wholesale or retail of canvas 
articles such as made-to-measure and stock awnings, canopies, tar- 
paulins, paulins, cotton picker sacks, truck and wagon covers, tents, 
sails, hatch covers, and other similar articles made of canvas such 
as are customarily manufactured and sold by members of this Indus- 
try ; it also includes the business of installing made-to-measure awn- 
ings, and made-to-measure canopies and the taking down, storing, 
and repairing of all awnings and canopies, and the renting of tar- 
paulins, tents, canopies, and awninjgs; provided, however, that the 
installing of made-to-measure awnings and made-to-measure cano- 
pies, when done by others than manufacturers, shall be exempt from 
all provisions of this Code except Articles III, IV, and V. 

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

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

4. The term "member of the industry" includes anyone engaged 
in the Industry as above denned, either as an employer or on his 
own behalf, but no one shall be deemed a member of the Industry 
as to those parts of his business or establishment not defined in 
Section 1 of this Article. 

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

Article III — Hours 

1. No employee shall be permitted to work in excess of forty 
(40) hours in any one week, except 

(46) 



47 

(a) Executives, supervisors, and those in a managerial position, 
and who receive thirty dollars ($30.00) or more per week, and out- 
side salesmen, 

(b) Clerical and office employees (other than those specified in 
paragraph (a) preceding) receiving more than thirty-five dollars 
($35.00) per week, 

(c) Repair shop crews, cleaners, and shipping help, who shall be 
permitted to work forty (40) hours a week with a tolerance of 10 
per cent, 

(d) Engineers, firemen, electricians, and watchmen, who shall be 
permitted to work forty-eight (48) hours per week. 

2. To take care of seasonal or peak demand, all emploj^ees may f 
work up to but not more than forty-eight (48) hours a week for 
any ten consecutive weeks in each calendar year. 

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

Article IV — Wages 

1. No employee shall be paid less than at the rate of thirty cents 
per hour in the States of Maryland, West Virginia, Virginia, Ken- 
tucky, Tennessee, North Carolina, South Carolina, Georgia, Alabama, 
Mississippi, Florida, Arkansas, Louisiana, Oklahoma, Texas and in 
the District of Columbia, and at the rate of thirty -two and one half 
cents (32%) per hour elsewhere. 

2. Learners during a three weeks' period are excepted from the 
foregoing provisions but shall be paid not less than 80 per cent of 
the minimum wage and shall be limited in number in any one factory 
to ten per cent (10%) of the total number of employees in that 
factory. A learner is defined as an employee who has worked less 
than three (3) weeks in the Canvas Goods Industry. 

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

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

5. Employees whose earning capacity is limited because of age, 
physical or mental handicap, or other infirmity, may be employed on 
light work at a wage below the minimum established by Section 1 
of this Article, if the employer obtains from the State authority, 
designated by the U.S. Department of Labor, a certificate authorizing 
such person's 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 U.S. 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 
wages paid to, and the maximum hours of work for such employee. 

6. Rates of pay in excess of the minimum hereinbefore prescribed 
shall be equitably adjusted in order to preserve equitable differentials. 

46822°— 425-84— r— 34^— 2 



48 

All such adjustments made since June 16, 1933 shall be reported to 
the Code Authority. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the Industry and no person under eighteen (18) years of age shall 
be employed at occupations hazardous in nature or detrimental to 
health. In any State an employer shall be deemed to have complied 
with this provision if he shall have on file a certificate or permit 
duly issued by the authority in such State empowered to issue em- 
ployment or age certificates or permits, showing that the employee 
is of the required age. 

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

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

4. Members of the Industry shall comply with the maximum hours 
of labor, minimum rates of pay, and other conditions of employ- 
ment, as approved or prescribed by the President. 

5. With the exception of one individual per member of the Indus- 
try, all members of any individual proprietorship, partnership, asso- 
ciation, or corporation, although connected with such member as a 
co-owner, partner, stockholder, officer or director, if engaged in any 
process of direct manufacture of the products of the Industry, shall 
be bound by the above schedules of hours of work and rates of pay, 
regardless of such proprietory interests. 

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

7. 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. 

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

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

10. Each employer shall post in conspicuous places in his plant 
and office full copies of Articles II, III, IV, and V of this Code. 



49 

Article VI — Administration 

1. There is hereby created a Code Authority for the Canvas Goods 
Industry to consist of three persons, each with one vote, to be 
selected by the National Tent and Awning Manufacturers Associa- 
tion, Inc., three persons, each with one vote, to be selected by the 
American Wholesale Canvas Goods Manufacturers Association, and 
one or more persons, without vote, to represent the Administrator, 
to be appointed by him, and to serve without expense to the Industry. 

2. The National Tent and Awning Manufacturers Association, 
Inc., and the American Wholesale Canvas Goods Manufacturers 
Association and any other trade association participating in this 
Code shall 

(a) impose no inequitable restrictions on membership, and 

(b) submit to the Administrator true copies of their respective 
articles of Association, by-laws, regulations, and any amendments, if 
and 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. 

3. In order that the representatives on the Code Authority shall 
at all times be truly representative of the Industry and in other re- 
spects 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 such representatives are not truly representative or 
do not in other respects comply with the provisions of the Act, he 
may require an appropriate modification in the method of selection 
of such representatives. 

4. For the purpose of administering this Code, ther«j jhall be 
recognized two Sections of the Industry as follows: 

(a) A retail section which shall include the installing o/ made-to- 
measure awnings and made-to-measure canopies and the taking down, 
storing, and repairing of all awnings and canopies and the renting 
of tarpaulins, tents, canopies, and awnings and all transactions 
where the products mentioned in Section 1 of Article II are sold 
direct to the consumer by a member of the industry except as set 
forth in sub-section (b) next following. 

(b) A wholesale section which shall include all transactions where 
the products mentioned in Section 1 of Article II are sold by a 
member of the industry for resale or to industrial consumers (other 
than small industrial consumers), steam and electric railroads, and 
federal, state and large municipal governmental agencies. 

The Code Authority, with the approval of the Administrator, shall 
determine and classify into the groups or classes above mentioned 
the purchasers of the products of this Industry. 

5. A Retail Canvas Goods Code Authority, to consist of the three 
persons on the Code Authority selected by the National Tent and 
Awning Manufacturers Association, Inc., together with the person 
or persons to be selected by the Administrator, is hereby created the 
agency to administer the provisions of this Code in cooperation with 
the Administrator insofar as such provisions pertain to the Retail 
Section of the Industry as hereinbefore defined. 

6. A Wholesale Canvas Goods Code Authority, to consist of the 
three persons on the Code Authority selected by the American 
Wholesale Canvas Goods Manufacturers Association, together with 



50 

the person or persons to be selected by the Administrator, is hereby 
created the agency to administer the provisions of this Code insofar 
as such provisions pertain to the Wholesale Section of the Industry 
as hereinbefore defined. 

7. The Code Authority may incorporate as a corporation not for 
profit. The Retail Canvas Goods Code Authority and the Whole- 
sale Canvas Goods Code Authority may also incorporate as corpora- 
tions not for profit. 

8. Nothing contained in this Code shall constitute the members 
of any of the various Code Authorities partners for any purpose, 
nor shall any member of any of the various Code Authorities be 
liable in any manner to any one for any act of any other member, 
officer, agent, or employee of any of the various Code Authorities. 
Nor shall any member of any of the various Code Authorities exer- 
cising reasonable diligence in the conduct of his duties hereunder 
be liable to any one for any act or omission to act under this Code, 
except for his own willful misfeasance or non-feasance. 

9. To the extent permitted by the Act, the Retail Canvas Goods 
Code Authority is hereby empowered : 

(a) to collect such reports and statistical data from members of 
the industry regarding the Retail Section of the Industry as in its 
judgment may be necessary adequately to plan for the Industry and 
adequately to administer and enforce the provisions of this Code. 

(b) To coordinate the administration of the Retail Section of the 
Industry with the administration of the Wholesale Section of the 
Industry. 

(c) To hear and, if possible, to adjust complaints in regard to 
violations of any provisions of the Code (except Articles III, IV, 
and V) insofar as they pertain to the Retail Section of the 
Industry. 

(d) To divide the United States into retail regions and/or zones 
as may be necessary for the proper administration of the retail 
section of this Code. 

(e) To make such delegation of its powers as may seem to it 
desirable. Nothing in such delegation shall relieve the Code Au- 
thority of any of its responsibilities under the Code. 

10. To the extent permitted by the Act, the Wholesale Canvas 
Goods Code Authority is hereby empowered: 

(a) To collect such reports and statistical data from members 
of the Industry regarding the Wholesale Section of the Industry 
as in its judgment may be necessary adequately to plan for the Indus- 
try and adequately to administer and enforce the provisions of this 
Code. 

(b) To coordinate the administration of the Wholesale Section 
of the Industry with the administration of the Retail Section of 
the Industry. 

(c) To hear and, if possible, to adjust complaints in regard to 
violations of any provisions of the Code (except Articles III, IV, 
and V) insofar as they pertain to the Wholesale Section of the 
Industry. 

(d) To divide the United States into wholesale regions and/or 
zones as may be necessary for the proper administration of the 
wholesale section of this Code. 



51 

(e) To make such delegation of its powers as may seem to it 
desirable. Nothing is such delegation shall relieve the Code Au- 
thority of any of its responsibilities under this Code. 

11. To the extent permitted by the Act, the Code Authority pro- 
vided for in Section 1 of this Article is hereby empowered: 

(a} To consider and act upon all matters that affect both the 
Ketail and Wholesale Sections of the Industry jointly, including 
Articles III, IV, and V, of this Code, and 

(b) To coordinate the administration of this Code with the 
administration of Codes of allied industries. 

(c) To make such delegation of its powers as may deem to it 
desirable. Nothing in such delegation shall relieve the Code 
Authority of any of its responsibilities under this Code. 

(d) To make recommendations to the Administrator which will 
effectuate the operation of the provisions of the Code and the policy 
of the Act, all such recommendations to become operative as a part 
of the Code upon approval by the Administrator. 

12. Each member of the Industry subject to the jurisdiction of 
this Code and accepting the benefits thereof, insofar as his business 
relates to the Ketail Section, shall pay to the Ketail Canvas Goods 
Code Authority his proportionate snare of the amounts necessary to 
maintain its operations in assembling, analyzing, and publishing 
reports and data and in carrying on its activities relative to the 
administration of this Code. Said proportionate share shall be 
assessed upon an equitable basis as the Ketail Code Authority, with 
the approval of the Administrator, may prescribe. 

13. Each member of the Industry subject to the jurisdiction of 
this Code and accepting the benefits thereof, insofar as his business 
relates to the Wholesale Section, shall pay to the Wholesale Canvas 
Goods Code Authority his proportionate share of the amounts neces- 
sary to maintain its operations in assembling, analyzing, and pub- 
lishing reports and data and in carrying on its activities relative 
to the administration of this Code. Said proportionate share shall 
be assessed upon an equitable basis as the Wholesale Code Authority, 
with the approval of the Administrator, may prescribe. 

14. The Ketail and Wholesale Canvas Goods Code Authority shall 
pay to the Code Authority provided for in Section 1 of this Article, 
their proportionate share of the amounts necessary to pay the cost 
of its maintenance and operation. Such proportionate share shall be 
determined upon an equitable basis approved by the Administrator. 

15. Members of the Industry, subject to the approval of the Ad- 
ministrator, shall furnish to the various Code Authorities, on re- 
quest, such information as they may require, and in addition they 
shall furnish to government agencies such statistical information as 
the Administrator may deem necessary for the purposes recited in 
Section 3 (a) of the Act. 

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 effected 
unless the Administrator approves or unless he shall fail to disap- 



52 

prove after 30 days' notice to him of intention to proceed with such 
action in its original or modified form. 

Article VII — Trade Practices 

A. The following Practices Constitute Unfair Methods of Com- 
petition for members of the Industry and are prohibited: 

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

2. Misrepresentation or False or Misleading Advertising. — The 
making or causing or knowingly permitting to be made or published 
any false, materially inaccurate or deceptive statement by way of 
advertisement or otherwise, whether concerning the grade, quality, 
quantity, substance, character, nature, origin, size, finish, or prepa- 
ration of any product of the Industry, or the credit terms, values, 

Eolicies, or services of any member of the Industry, or otherwise, 
aving the tendency or capacity to mislead or deceive customers or 
prospective customers is hereby prohibited. 

3. Commercial Bribei^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 
employers of such employee, the principal of such agent or the rep- 
resented party : without the knowledge of such employer, principal 
or party. This provision shall not be construed to prohibit free 
and general distribution of articles commonly used for advertising 
except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

4. Interference with Contractual Relations. — Maliciously inducing 
or attempting to induce the breach of an existing oral or written 
contract between a competitor and his customer or source of supply, 
or interfering with or oDstructing the performance of any such con- 
tractual duties or services is hereby prohibited. 

5. Secret Rebates. — The secret payment or allowance of rebates, 
refunds, commissions, credits, or unearned discounts, whether in the 
form of money or otherwise, or the secret extension to certain pur- 
chasers of special services or privileges not extended to all purchas- 
ers on like terms and conditions is hereby prohibited. 

6. Giving of Prizes, Premiums or Gifts. — The offering or giving 
of prizes, premiums or gifts in connection with the sale of products, 
or as an inducement thereto, by any scheme which involves lottery, 
misrepresentation or fraud is hereby prohibited. 

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

8. Threats of Litigation. — The publishing or circularizing of 
threats of suits for infringement of patents or trade marks or of 
any other legal proceedings not in good faith, with the tendency or 



53 

effect of harassing competitors or intimidating their customers is 
hereby prohibited. 

9. Espionage of Competitors. — Securing confidential information 
concerning the business of a competitor oy a false or misleading 
statement or representation, by a false impersonation of one in 
authority, by bribery, or by any other unfair method is hereby 
prohibited. 

10. Other Unfair Practices. — Nothing in this Code shall limit the 
effect of any adjudication by the Courts or holding by the Federal 
Trade Commission on complaint, findings, and order that any prac- 
tice or method is unfair, provided that such adjudication or holding 
is not inconsistent with any provision of the Act or of this Code. 

11. As a manufacturing process, the having of work done or 
labor performed on any awnings or tents or other canvas products 
in rooms used for living quarters is hereby prohibited. No work 
shall be done or labor performed in any unsanitary building, or 
under unsanitary conditions. 

12. The sale or offer for sale of tarpaulins, paulins, truck covers, 
wagon covers, and/or tents on any basis of weight other than the 
weight of the untreated material per square yard is hereby 
prohibited. 

13. The sale or offer for sale of cotton picker sacks on any basis 
of weight other than the weight of the untreated material on 29 
inch basis is hereby prohibited. 

14. The booking of contracts with provisions guaranteeing prices 
against decline or advance, or with stock protection is hereby 
prohibited. 

15. The placing of merchandise on consignment, either directly or 
indirectly, is hereby prohibited. 

16. The copying or imitation or sale of new styles, patterns, or 
designs originated by another member of the Industry when same 
shall be registered either with the United States Patent Office or 
accepted as a novel by a two-thirds vote of the Code Authority and 
registered with said Code Authority. 

B. Sales Below Cost, Open Price Listing, and Cost Accounting 
Provisions. 

1. No member of the Canvas Goods Industry shall sell or offer 
for sale, or exchange, any products of the Industry in a retail or 
wholesale transaction at a price below the reasonable cost established 
as hereinafter provided. 

(a) When the Ketail Canvas Goods Code Authority determines 
that an emergency exists in the Retail Section of this Industry and 
that the cause thereof is destructive price-cutting such as to render 
ineffective or seriously to endanger the maintenance of the provisions 
of this Code, the Retail Canvas Goods Code Authority may cause to 
be determined for any or all retail regions and/or retail zones, the 
reasonable cost of the products of the Retail Section of this Industry, 
such determination to be subject to such notice and hearing as the 
Administrator may require. The Administrator may approve, dis- 
approve, or modify the determination. Thereafter, during the 
period of the emergency, it shall be an unfair trade practice for any 
member of the Industry to sell or offer to sell at retail, as defined 
in Article VI, Section 4(a), any products of the Industry for which 



54 

the reasonable cost has been determined at such prices and/or upon 
such terms .or conditions of sale that the buyer will pay less there- 
fore than the reasonable cost of such products. 

When it appears that conditions have changed, the Retail Canvas 
Goods Code Authority, upon its own initiative or upon the request 
of any interested party, shall cause the determination to be reviewed. 

(b) No member of the Industry shall sell or offer for sale or 
exchange any product of the industry at wholesale, as defined in 
Section 4r-b of Article VI, at a price below his own individual cost, 
determined in accordance with the provision of Section 3 of this 
Article, except to meet the competition of a competitor who is not 
selling below his own individual cost. 

(c) When the Wholesale Canvas Goods Code Authority deter- 
mines that an emergency exists in the Wholesale Section of this 
Industry and that the cause thereof is destructive price-cutting 
such as to render ineffective or seriously to endanger the mainte- 
nance of the provisions of this Code, the Wholesale Canvas Goods 
Code Authority may cause to be determined for any or all whole- 
sale regions and/or wholesale zones, the reasonable cost of the prod- 
ucts of the Wholesale Section of this Industry, such determination 
to be subject to such notice and hearing as the Administrator may 
require. The Administrator may approve, disapprove, or modify 
the determination. Thereafter, during the period of the emergency, 
it shall be an unfair trade practice for any member of the Industry 
to sell or offer to sell at wholesale, as defined in Article VI, Section 
4(b), any products of the Industry for which the reasonable cost 
has been determined at prices and/or upon such terms or conditions 
of sale that the buyer will pay less therefor than the reasonable 
cost of such products. 

When it appears that conditions have changed, the Wholesale 
Canvas Goods Code Authority, upon its own initiative or upon 
the request of any interested party, shall cause the determination 
to be reviewed. 

(d) The foregoing provisions shall not apply to articles commonly 
known as " dropped lines ", " close outs " and damaged returned 
merchandise, which articles may be sold at such price or prices as 
are necessary to consumate a sale. 

2. In figuring cost the items of materials may be based upon a 
manufacturer's individual cost or upon the market value oi raw 
materials, whichever is lower. 

3. Every member of the Industry must have a cost accounting 
system. 

(a) The Retail Canvas Goods 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 selling at 
retail. After such system and methods have been formulated and 
approved by the Administrator, full details concerning them shall 
be made available to all members of the Industry selling at 
retail. Thereafter all members of the Industry selling primarily at 
retail shall determine and/or estimate costs of all products of the 
Industry sold by them in -accordance with the principles of such 
methods. 



55 

(b) The Wholesale Canvas Goods 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 sell- 
ing at wholesale. After such system and methods have been for- 
mulated and approved by the Administrator, full details concerning 
them shall be made available to all members of the Industry selling 
at wholesale. Thereafter all members of the Industry selling pri- 
marily at wholesale shall determine and/or estimate costs of all 
products of the Industry sold by them in accordance with the 
principles of such methods. 

4. Each member of the Canvas Goods Industry shall, within ten 
days after the effective date of this Code, file with the Retail Canvas 
Goods Code Authority a net price list or a price list and discount 
sheet as the case may be, individually prepared by him, showing 
his current prices or prices and discounts and terms of payment and 
conditions of sale on the following products and services sold or 
offered for sale at retail as defined in Section 4 (a) of Article VI: 

Tarpaulin, canopy and tent rentals 

Taking down, storing and putting up awnings 

Awnings made-to-measure 

Ship canvas 

Tarpaulins 

Paulins 

Truck and wagon covers 

Tents, including wall, stable, mule fly, oblong, concession and 
show, gypsy, round and cemetery, and made-to-measure 
tents. 
Kevised price lists, with or without discount sheets, may be filed 
from time to time thereafter with the Eetail Canvas Goods Code 
Authority by any member of the industry to become effective upon 
a date specified by such member of the industry, which date shall 
be not less than ten (10) days after the filing of such revised prices 
with the Ketail Canvas Goods Code Authority. 

Copies of price lists, discount sheets and revisions thereof, with 
notice of the effective date specified, shall be sent to any member 
of the industry upon written application to the Retail Canvas Goods 
Code Authority for such information. 

Upon the filing of any price list, discount sheet, or revision thereof 
by any member of the Industry other members of the industry may 
file, if they so desire, revisions of their price lists and/or discount 
sheets, which, if filed previous to such effective date, shall take effect 
upon the date when the revised price list or discount sheet first filed 
shall go into effect. 

5. No member of the Canvas Goods Industry shall sell or offer for 
sale, or exchange, the products enumerated in the preceding section, 
when sold or offered for sale at retail as defined in Section 4 (a) 
of Article VI, and no member of the Industry shall perform the 
service mentioned in the preceding section, at prices lower or dis- 
counts greater or on more favorable terms of payment than the 
approved schedule of such member on file with the Retail Canvas 
Goods Code Authority as above provided. 

6. If it be the belief of the Retail Canvas Goods Code Authority 
that any price list submitted represents sales below the cost of the 



56 

member submitting same, the date of effectiveness of such list may- 
be delayed an additional ten (10) days in order that an investigation 
may be made by the Retail Canvas Goods Code Authority to deter- 
mine the propriety of such cost. If it is found or determined by the 
Retail Canvas Goods Code Authority that said price list represents 
figures below cost, as defined by the Retail Canvas Goods Code Au- 
thority and approved by the Administrator, such price list shall be 
withdrawn and revised price lists submitted. 

7. Nothing herein contained shall be construed to require the filing 
of prices with the Retail Canvas Goods Code Authority of any of the 
products of the Industry sold at wholesale, as defined in Article VI, 
Section 4 (b) , provided, however, that the Wholesale Canvas Goods 
Code Authority may elect to establish open price listing for any 
product or products of the Industry sold or offered for sale at whole- 
sale as defined in Article VI, Section 4 (b). 

In which event each member of the Canvas Goods Industry shall, 
within ten days after such decision, file with the Wholesale Canvas 
Goods Code Authority a net price list or a price list and discount 
sheet as the case may be, individually prepared by him, showing his 
current prices or prices and discounts and terms of payment and 
conditions of sale on the products decided upon by the Wholesale 
Canvas Goods Code Authority sold or offered for sale at wholesale as 
defined in Section 4 (b) of Article VI. Revised price lists, with or 
without discount sheets, may be filed from time to time thereafter 
with the Wholesale Canvas Goods Code Authority by any member 
of the Industry to become effective upon a date specified by such 
member of the Industry, which date shall be not less than ten (10) 
days after the filing of such revised prices with the Wholesale Canvas 
Goods Code Authority. 

Copies of price lists, discount sheets and revisions thereof with 
notice of the effective date specified, shall be sent to any member of 
the Industry upon written application to the Retail Canvas Goods 
Code Authority for such information. 

Upon the filing of any price list, discount sheet, or revision thereof, 
by any member of the Industry, other members of the Industry may 
file, if they so desire, revisions of their price lists and/or discount 
sheets, which if filed previous to such effective date, shall take effect 
upon the date when the revised price list or discount sheet first filed 
shall go into effect. 1 

8. No member of the Canvas Goods Industry shall sell or offer for 
sale or exchange the products decided upon by the Wholesale Canvas 
Goods Code Authority when sold or offered for sale at wholesale as 
defined in Section 4 (b) of Article VI, at prices lower or discounts 
greater or on more favorable terms of payment than the approved 
schedule of such member on file with the Wholesale Canvas Goods 
Code Authority as above provided. 

9. If it be the belief of the Wholesale Canvas Goods Code Authority 
that any price lists submitted represents sales below the cost of the 
member submitting same, the date of effectiveness of such list may be 
delayed an additional ten (10) days in order that an investigation 
may be made by the Wholesale Canvas Goods Code Authority to 
determine the propriety of such cost. If it is found or determined 

1 See paragraph 2 of order approving this Code. 



57 

by the Wholesale Canvas Goods Code Authority that said price list 
represents figures below cost, as defined by the Wholesale Canvas 
Goods Code Authority and approved by the Administrator, such 
price list shall be withdrawn and revised price lists submitted. 

10. It is hereby provided that the operation of the foregoing pro- 
visions in regard to price lists shall at all times be subject to the 
approval of 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 cancel or modify any order, ap- 
proval, license, rule or regulation issued under Title I of said Act 
and specifically, but without limitation ? to the right of the President 
to cancel or modify his approval of this Code or any conditions im- 
posed by him upon his approval thereof. 

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

Article IX — 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 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 serv- 
ices increase as rapidly as wages, it is recognized that price increases 
should be delayed and that, when made, the same should, so far as 
reasonably possible, be limited to actual increases in the seller's costs* 

Article XI — Eftective Date 

This Code shall become effective five days after its approval by 
the President. 

Approved Code No. 333. 
Registry No. 202-13. 



Approved Code No. 334 
CODE OF FAIR COMPETITION 

FOR THE 

BEVERAGE DISPENSING EQUIPMENT INDUSTRY 

As Approved on March 16, 1934 



ORDER 



Approving Code of Fair Competition for the Beverage Dispensing 
Equipment Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of the Code of 
Fair Competition for the Beverage Dispensing Equipment 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 VIII, Section 2 insofar as they 
prescribe a waiting period between the filing with the Code Author- 
ity and the effective date of revised price lists or revised terms and 
conditions of sale be and they are hereby stayed pending my fur- 
ther Order either within a period of sixty days from the effective 
date of this Code or after the completion of a study of open price 
associations now being conducted by the National Recovery Admin- 
istration; and further provided, that Section 6 of Article VIII 
shall be stricken from the Code. 

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval recommended : 
W. A. Harriman, 

Division Administrator. 

Washington, D.C., 

March 16, 193^ 

46823°— —425-85^-34 (59) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Beverage Dispensing Equipment Industry in the United States, as 
revised after the hearing conducted in Washington on November 8, 
1933 in accordance with the provisions of the National Industrial 
Recovery Act. 

PROVISIONS OF THE CODE AS TO HOURS, WAGES AND GENERAL LABOR 

PROVISIONS 

This Code provides that no employee shall be permitted to work in 
excess of forty (40) hours in any week, except as follows : 

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

(b) Employees engaged in emergency maintenance and emergency 
repair work, and 

(c) Emplo}'ees engaged as firemen and watchmen in manufacturing 
operations may be permitted to work not more than forty-eight (48) 
hours in any one week, and 

(d) Employees engaged as truck drivers, installation, repair and 
erection employees who may be permitted to work not more than 
forty -four (44) hours in any one week, and 

(e) To provide for seasonal peaks employees (other than those 
engaged in clerical or office work and those engaged as firemen and 
watchmen in manufacturing operations and those engaged as truck 
drivers, installation, repair and erection employees) may be per- 
mitted to work not in excess of forty-eight (48) hours in any one 
week in not more than six (6) weeks of any six (6) months' period, 
provided, however, that this tolerance shall not be permitted if sea- 
sonal demands can be met by the employment of additional 
employees. 

This Code establishes a minimum rate of pay of forty cents (400) 

Eer hour, except that persons employed in clerical or office work shall 
e paid not less than at the rate of $15.00 per week in any city of 
500,000 population or over, or in the immediate trade area of such 
city; nor less than $14.50 per week in any city of between 250,000 
and 500,000 population or in the immediate trade area of such city ; 
nor less than $14.00 per week in any city or town of 250,000 or less 
population. 

This Code also establishes a minimum rate of pay irrespective of 
whether the employee is actually compensated on a time-rate, piece- 
work or other basis. This Code also provides for an equitable 
adjustment of all wages above the minimum and for overtime pay 

(60) 



61 

as at least one and one-half (1%) times the normal rate of pay. 
Further this Code provides that no employee now employed at a 
rate in excess of the minimum shall be discharged and reemployed 
or replaced by another employee at a lower rate for the purpose of 
evading the provisions of this Code. 

Further no person under sixteen (16) years of age shall be em- 
ployed in the industry and no person under the age of eighteen (18) 
years shall be employed at operations or occupations, hazardous in 
nature or dangerous to health. 

Further no employer shall reclassify employees or duties of occu- 
pations performed or engage in any subterfuge for the purpose of 
defeating the provisions of the Act or of this Code. Provisions are 
incorporated covering Standards for Safety and Health and for the 
Payment of Wages. 

ECONOMIC EFFECTS OF THE CODE 

The members of this industry manufacture and install dispensing 
equipment and accessories for beverages, both alcoholic and non- 
alcoholic. The raw materials utilized in the industry are numerous, 
consisting, in part, of stainless steel, non-ferrous metals, lumber, 
marble, tile, vitrolite and formica. 

The report of the Kesearch and Planning Division indicates that 
the value of the industry's products fell from $24,500,000 in 1929 to 
$9,000,000 in 1932, or a drop of approximately 65 per cent. During 
the first part of 1933, the legalization of beers and wines of low alco- 
holic content has aided the industry, but the increase in output has 
fallen off appreciably since July. Likewise the number of employ- 
ees decreased approximately 45% from 1929 to 1932, the total in 1932 
being approximately 1,500. For the first nine months of 1933 the 
number of employees increased to approximately 2,100, but if beer 
drawing equipment is disregarded, approximately the same number 
of workers were employed as in 1932. The adoption of this Code 
should show an immediate increase in the number of employees en- 
gaged in the industry, amounting to approximately 500 persons. 

Further, the minimum wage rate provided in the Code should 
raise the rate approximately 12% above the minimum rate paid in 
1929 and should increase the purchasing power for this class of 
labor above the 1929 purchasing power. Corresponding wage ad- 
justments of wages above the minimum should further increase pur- 
chasing power. 

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 Kecovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 



62 

under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practices, by promoting the fullest possi- 
ble 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 la- 
bor, 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 associ- 
ation is an industrial association truly representative of the afore- 
said Industry; and that said association imposes no inequitable re- 
strictions on admission to membership therein. 

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

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

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

For these reasons, therefore. I have approved this Code. 
Respectfully, 

Hugh S. Johnson, 

A dmirustrator. 
March 16. 1934. 



CODE OF FAIR COMPETITION FOE THE BEVERAGE 
DISPENSING EQUIPMENT INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Re- 
covery Act, this Code is established as a Code of Fair Competition 
for the Beverage Dispensing Equipment Industry, and its provi- 
sions shall be the standard of fair competition for such industry 
and shall be binding upon every member thereof. 

Article II — Definitions 

Section 1. The term " Beverage Dispensing Equipment Industry " 
or " Industry " as used herein is defined to mean and include the 
manufacturing (for sale) and the installing (by the manufacturer) 
of all dispensing equipment for beverages as herein defined, includ- 
ing front counters and back bars, drain boards, soda fountains, and 
carbonators, and parts thereof, which are a part of beverage dis- 
pensing equipment and sold in connection or for use therewith, but 
not including barrels, kegs and other containers in which beverages 
are packaged for delivery to the dispenser. 

Section 2. The term " beverage " as used herein is denned to 
mean and include alcoholic, spirituous and fermented liquors of all 
types and kinds, beer and other malt and cereal beverages, and 
those non-alcoholic beverages (both still and carbonated) commonly 
known as soft drinks. 

Section 3. The term " member of the industry " includes but 
without limitation any individual, partnership, association, corpora- 
tion, or other form of enterprise engaged in the 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 industry, however compensated, ex- 
cept a member of the industry. 

Section 5. The term " Trade " as used herein is defined to mean 
the channels of distribution to the consumer for the products of this 
Industry. 

Section 6. The term "Association " as used herein means " The 
National Beverage Dispensing Equipment Association ". 

Section 7. The term "Act '° and "Administrator " as used herein 
shall mean respectively Title I of the National Industrial Recovery 
Act, and the Administrator for Industrial Recovery. 

Section 8. Population for the purposes of this Code shall be 
determined by reference to the latest Federal Census. 

Article III — Hours 

Section 1. Maximum Hours. — No employee shall be permitted to 
work more than forty (40) hours in any one week (seven (7) day 

(63) 



64 

period) nor more than eight (8] hours in any one day (twenty-four 
(24) hour period) nor more tnan six (6) days in any one week, 
except as herein otherwise provided. 

Section 2. Hours for Clerical and Office Employees. — No person 
engaged in clerical or office work shall be permitted to work in ex- 
cess of forty (40) hours in any one week (seven (7) day period^ 
nor more than nine (9) hours in any one day (twenty-four (24) 
hour period) nor more than six (6) days in any one week. 

Section 3. Exceptions as to Hours. — To provide for seasonal 
peaks, employees under Section 1 may be permitted to work not in 
excess of forty-eight (48) hours in any one week (seven (7) day 
period) in not more than six (6) weeks of any six (6) months 
period, provided, however, that this tolerance shall not be per- 
mitted if seasonal demands can be met by the employment of addi- 
tional employees, and further provided, that at least one and one- 
half (1%) times the normal rate of pay shall be paid for all hours 
worked in excess of the maximum provided herein in Section 1. 

Section 4. Employees engaged as firemen and watchmen in manu- 
facturing operations may be permitted to work not more than forty- 
eight (48) hours in any one week (seven (7) day period). 

Section 5. Employees engaged as truck drivers, installation, re- 
pair and erection employees, may be permitted to work not more 
than forty-four (44) hours in any one week (seven (7) day period), 
provided that at least one and one half (1%) times the normal rate 
of pay shall be paid for all hours worked in excess of nine (9) hours 
in any twenty-four (24) hour period. 

Section 6. Exemptions as to Hours. — The provisions of this Arti- 
cle shall not apply to traveling salesmen, or to persons employed in 
a managerial or executive capacity who earn not less than thirty- 
five dollars ($35.00) per week. 

Section 7. The provisions of this Article shall not apply to em- 
ployees engaged in emergency maintenance or emergency repair 
work, provided, however, that in any such emergency work at least 
one and one-half (1%) times the normal rate of pay shall be paid for 
all hours worked in excess of the maxima herein provided by this 
Article, and further provided that all cases of emergency work shall 
be reported to the Code Authority, and further provided that such 
overtime shall not exceed eight (8) hours in any one week (seven 
(7) day period) except in cases of emergency maintenance or emer- 
gency repair work involving breakdowns or the protection of life 
or property. 

Section 8. 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 employers, exceeds the maxima permitted herein. 

Section 9. The provisions of Section 1 of this Article shall apply 
to all employers normally engaged in an executive or managerial 
capacity when engaged in production or mechanical work. 

Article IV — Wages 

Section 1. Minimum Wages. — No employee sail be paid in any 
pay period less than at the rate of forty cents (40^) per hour except 
as herein provided. 



65 

Section 2. No clerical or office employee shall be paid in any pay- 
period less than at the rate of $15.00 per week in any city of 500,000 
population or over, or in the immediate trade area of such city; nor 
less than at the rate of $14.50 per week in any city of between 250,000 
and 500,000 population, or in the immediate trade area of such city; 
nor less than at the rate of $14.00 per week in any city or town of 
250,000 or less population. 

Section 3. Piece-Work 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. Wages Above Minimum. — Equitable adjustments in 
pay schedules of all employees shall be made within thirty (30) days 
after the effective date of this Code by any employer who has not 
heretofore made such adjustments under the National Industrial Re- 
covery Act. Within sixty (60) days after the effective date all such 
adjustments made under the Act shall be reported to the Code 
Authority and the Administrator. In no case shall rates be reduced. 

Section 5. Evasion Through Reemployment. — No employee now 
employed at a rate in excess of the minimum shall be discharged and 
reemployed or replaced by another employee at a lower rate for the 
purpose of evading the provisions of this Code. 

Article V — General Labor Provisions 

Section 1. Child Labor Provision, — No person under sixteen (16) 
years of age shall be employed in the industry. No person under 
eighteen (18) years of age shall be employed at operations or occu- 
pations 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 issued by the Authority in such State em- 
powered to issue employment or age certificates or permits showing 
that the employee is of the required age. 

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 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 3. Reclassification of Employees. — No employer shall re- 
classify employees or duties of occupations performed or engage in 

46823° 425-85 34 2 



66 

any subterfuge for the purpose of defeating the provisions of the 
Act or of this Code. 

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

Section 5. State Laics. — No provision in this Code shall super- 
sede 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 in- 
surance, or fire protection, than are imposed by this Code. 

Section 6. Posting. — All employers shall post and keep posted 
complete copies of this Code in conspicuous places accessible to em- 
ployees. 

Section 7. Payment of Wages. — All employers shall make pay- 
ment of all wages due in lawful currency or by negotiable check 
therefor, payable on demand. AVages shall be paid at the end of 
each weekly period. These wages shall be exempt from any payment 
for pensions, insurance or such benefits other than those voluntarily 
paid by employees. Employers or their agents shall not accept, di- 
rectly or indirectly, rebates on such wages or give anything of value 
nor extend any favors to any person for the purpose of influencing 
rates of wages or working conditions of their employees. 

The provisions of this section regarding payment of wages at the 
end of each weekly period shall not apply to persons employed in a 
managerial or executive capacity who earn not less than thirty-five 
dollars ($35.00) per week, nor to persons employed in clerical or 
office work. The wages for persons employed in clerical or office 
work shall be paid at the end of pay periods not to exceed semi- 
monthly periods. 

Section 8. Dismissed. — No employee shall be dismissed by reason 
of making a complaint or giving evidence with respect to a violation 
of this Code. 

Article VI — Administration of the Code 

Section 1. To provide for the administration of this Code within 
the Industry and cooperation with the Administrator, a Code Au- 
thority is hereby constituted. 

Section 2. The Code Authority shall consist of five (5) members 
who shall be selected from members of the Industry, eligible to such 
participation as provided herein by section 7, as follows : 

Members of the industry shall elect the five (5) members of the 
Code Authority, provided that not more than one (1) such member 
of the Code Authority shall be elected from any one (1) member of 
the industry, and provided further, that the non-members of the 
Association shall be entitled to at least one member on the Code 
Authority, if any such non-members are eligible as provided herein 
by Section 7, until eighty percent (80%) of the members of the in- 
dustry shall have become members of the Association. 

Section 3. The Association is hereby designated as the agency to 
conduct an election of the members of the Code Authority to be 



67 

held within fifteen (15) days after the effective date of this code, 
and to conduct any other elections of the Code z'mthority which 
may thereafter be held. 

Members of the first Code Authority shall be elected by a majority 
vote of the members of the industry eligible as provided herein 
by section 7 and present at a meeting called for the purpose, as pro- 
vided in the preceding paragraph. Subsequent elections of the 
Coclei Authority may be by person, proxy or letter voting, by mem- 
bers of the industry, eligible as provided herein in Section 7. All 
members of the Code Authority shall be elected to serve for a term 
of one (1) year or until their successors are duly elected and qualified. 

In the event of any vacancy in the membership of the Code 
Authority a special meeting of the members of the industry shall 
be called and an election held within thirty (30) days after such 
notice of such vacancy to fill such vacancy. 

Notice of the time and place of all election meetings shall be 
sent by registered mail to all members of the industry and the 
Administrator at least ten days in advance of such meetings. 

Section 4. In addition to membership as above provided, there 
may be three (3) members, without vote, to be appointed by the 
Administrator. 

Section 5. The representatives who may be appointed by the 
Administrator together with the Administrator shall be given notice 
of and may sit at all meetings of the Code Authority. 

Section 6. Each member of the industry entitled to participate 
in the selection of the members of the Code Authority shall be en- 
titled to one vote for each one hundred thousand dollars ($100,000) 
of shipments of products of the industry reported for the previous 
calendar year, provided that no such member shall have more than 
five (5) votes and provided further that each such member shall have 
at least one vote irrespective of the amount of shipments reported for 
the previous calendar year. 

Section 7. Members of the industry shall be entitled to partici- 
pate in and share the benefits of the activities of the Code Authority 
and to participate in the selection of the members thereof by assent- 
ing and complying with the requirements of this Code and sus- 
taining their reasonable share of the expenses of its administration. 
Such reasonable share of the expenses of administration shall be 
determined 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. 

Section 8. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code 
Authority shall (1) impose no inequitable restrictions on member- 
ship, and (2) submit to the Administrator true copies of its articles 
of association, by-laws, regulations, and any amendments when 
made thereto, together with, such other information as to member- 
ships, organization, and activities as the Administrator may deem 
necessary to effectuate the purpose of the Act. 

Section 9. In order that the Code Authority shall at all times 
be truly representative of the industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe 
such hearings as he may deem proper; and thereafter if he shall 



68 

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. 

Section 10. 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 em- 
ployee of the Code Authority. Nor shall any member of the Code 
Authority, exercising reasonable diligence in the conduct of his 
duties hereunder, be liable to anyone for any action or omission 
to act under this Code, except for his own wilful misfeasance or 
non-feasance. 

Section 11. The Code Authority shall have the following powers 
and duties to the extent permitted by the Act; provided, that, if 
the Administrator shall determine that any action of the Code 
Authority or any agency thereof may be unfair or unjust or con- 
trary to the public interest, the Administrator may require that 
such action be suspended to afford an opportunity for investigation 
of the merits of such action and further consideration by such code 
authority or agency pending final action which shall not be effective 
unless the Administrator approves or unless he shall fail to disap- 
prove after thirty da} T s' notice to him of intention to proceed with 
such action in its original or modified form. 

(a) To execute the provisions of this Code and proA T ide for the 
compliance of the Industry with the provisions of the Act. 

(b) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To obtain from members of the industry such information 
and reports as are required for the administration of the Code and 
to provide for submission by members of such information and 
reports as the Administrator may deem necessary for the purposes 
recited in Section 3 (a) of the Act, which information and reports 
shall be submitted by members to such administrative and/or gov- 
ernment agencies as the Administrator may designate: provided 
that nothing in this Code shall relieve any member of the industry 
of any existing obligations to furnish reports to any government 
agency. No individual report shall be disclosed to any other mem- 
ber of the industry or any other party except to such governmental 
agencies as may be directed by the Administrator. 

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

(e) To make recommendations to the Administrator for the coor- 
dination of the administration of this Code with such other codes, 
if any, as may be related to the industry. 

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



69 

(g) To cooperate with the Administrator in regulating the use 
of any NRA insignia solely by those members of the industry who 
have assented to and are complying with this Code. 

(h) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the industry in their relations 
with each other or with other industries and to recommend to the 
Administrator measures for industrial planning including stabiliza- 
tion of employment. 

Section 12. To require that any information submitted to the 
Code Authority by a member of the industry shall be subject to 
verification, by an examination of the pertinent books and accounts 
and reports of such member by any person (not connected with 
the Industry) designated by the Code Authority, and shall be so 
verified if the Code Authority shall require it. The cost of each 
such examination shall be treated as an expense of administering 
the Code; provided, however, that if upon examination any such 
information shall be shown to have been incorrect in any material 
respect, such cost shall be paid by the member which furnished 
such information. 

Section 13. Any interested party shall have the right of complaint 
to the Code Authority and of a prompt hearing and decision thereon 
in respect to any decision, rule, regulation, or other course of action 
of such Code Authority. Such complaint must be filed in writing 
with the Code Authority within a reasonable period of time after 
said decision, rule, regulation, or course of action is issued or taken. 
The decision of such Code Authority may be appealed by any inter- 
ested party to the Administrator. 

Section 14. Any interested party shall have the right of appeal to 
the Administrator, under such rules and regulations as he may pre- 
scribe, in respect to any decision, rule, regulation, or other course of 
action, issued or taken by the Code Authority. 

Article VII — Trade Practice Rules 

GENERAL DEFINITION 

For all purposes of the Code the acts described in this Article shall 
constitute unfair practices. Any member of the industry who shall 
directly, or indirectly through any officer, employee or agent know- 
ingly use, employ, or permit to be employed any of such unfair 
practices shall be guilty of a violation of the Code. 

Rule 1. Inaccurate References to Competitors, etc. — No member 
of the industry shall publish advertising which refers inaccurately in 
any material particular to any competitors or their goods, prices, 
values, credit terms, policies or services. 

Rule 2. Inaccurate Advertising. — No member of the industry shall 
publish advertising (whether printed, radio, display or of any other 
nature), which is misleading or inaccurate in any material particular, 
nor shall any member in any way misrepresent any goods (including 
but without limitation its use, trade-mark, grade, quality, quantity, 
origin, size, substance, character, nature, finish, material, content or 
preparation) or credit terms, values, policies, services, or the nature 
or form of the business conducted. 



70 

Rule 3. Commercial Bribery. — No member of the industry shall 
give, permit to be given, or directly offer to give, anything 01 value 
for the purpose of influencing or rewarding the action of any em- 
ployee, agent or representative of another in relation to the business 
of the employer of such employee, the principal of such agent or the 
represented party, without the knowledge of such employer, princi- 
pal or party. This provision shall not be construed to prohibit fre« 
and general distribution of articles commonly used for advertising 
except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

Rule 4. Interference with Another's Contracts. — No member of 
the industry shall maliciously induce or attempt to induce the breach 
of an existing contract between a competitor and his employee or 
customer or source of supply; nor shall any such member interfere 
with or obstruct the performance of such contractual duties or 
services. 

Rule 5. Secret Rebates. — No member of the industry shall offer 
or make any secret or discriminatory payment or allowance of a 
rebate, refund, commission, credit, unearned discount or excess al- 
lowance, whether in the form of money or otherwise, nor shall a 
member of the industry offer or extend to any customer secret or 
discriminatory service or privilege for the purpose of influencing a 
sale. 

Rule 6. Giving Prizes, Premium or Gifts. — No member of the 
industry shall offer or give prizes, premiums, or gifts in connection 
with the sale of products, or as an inducement thereto, by any scheme 
which involves lottery, misrepresentation or fraud. 

Rule 7. Defamation. — No member of the industry shall defame 
competitors by falsely imputing to them dishonorable conduct, in- 
ability to perform contracts, questionable credit standing, or by 
other false representations or by the false disparagement of the 
grade or quality of their goods. 

Rule 8. Threats of Law Suits. — No member of the industry shall 
publish or circulate unjustified or unwarranted threats of legal pro- 
ceedings which tend to or have the effect of harassing competitors or 
intimidating their customers. Failure to prosecute in due course 
shall be evidence that any such threat is unwarranted or unjustified. 

Rule 9. Espionage of Competitors. — No member of the industry 
shall secure or attempt to secure confidential information concerning 
the business of a competitor by a false or misleading statement or 
representation or by false impersonation of one in authority by 
bribery or any other unfair method. 

Rule 10. Selling Below Cost. — No member of the industry shall 
sell below his allowable cost. 

The Code Authority shall formulate or cause to be formulated 
standard methods or systems of cost accounting for use in this 
industry, which methods, or systems shall be adaptable to the cost 
accounting procedure of, and to the business of this industry. Such 
methods or systems shall specify the factors that shall determine 
the allowable cost for each member of the industry pursuant to 
the provisions of this section. Upon approval of such methods or 
systems by the Administrator, the Code Authority shall furnish 
to each member of the industry complete details of such methods 



71 

or systems. Thereafter, in determining costs (including estimated 
costs), each member or the industry shall use a cost accounting 
system which shall be at least as complete and detailed as the cost 
accounting method or system recommended by the Code Authority 
and approved by the Administrator. 

The cost of used equipment or other products of this industry, 
for which a trade-in allowance has been made by a member of the 
industry selling new equipment to replace that taken in exchange, 
shall at least be the amount of the allowance shown on the purchase 
contract for such new equipment. This provision does not apply 
to the sale of obsolescent or damaged products which products may 
be sold at such prices and under such terms and concfitions of sale 
as shall be established by the Code Authority, subject to the disap- 
proval of the Administrator. 

Rule 11. No member of the industry shall, directly or indirectly, 
discriminate in price between different purchasers of the products 
of this industry; provided, however, that nothing contained in this 
section shall prevent discrimination in price between purchasers of 
the same class on account of difference in the grade, quality, or quan- 
tity of the product sold, or that makes only due allowance for dif- 
ference in tne cost of selling or transportation. 

Rule 12. Revised Quotations. — No member of the industry shall 
submit revised quotations, proposals or bids of a quotation, proposal 
or bid previously filed with a purchaser unless changes in the specifi- 
cations or requirements of the purchaser justify such a revised quota- 
tion, proposal or bid. 

Rule 13. No member of the industry shall sell any article not 
manufactured by the member, but purchased by such member for 
resale in connection with the sale of any products manufactured 
by him at a price lower than the actual cost to the member of such 
complete article. 

Rule 14. No member of the industry shall sell any products of 
the industry f.o.b. destination unless the amount of the freight (if 
prepaid by a member) is collected from the purchaser in addition 
to and at the time of the first cash payment provided such products 
are sold on extended terms. Any member of the industry may 
equalize freight with a competing member of the industry. 

Rule 15. No member of the industry shall offer or give service on 
his equipment for a period longer than one year from the date of 
installation of the equipment, unless proper charge has been made by 
the member for such excess service. 

Rule 16. No member of the industry shall accept the bonds or 
other securities involved in the financing of the business for which 
the contemplated or actual purchase is made, in part or in whole 
payment for equipment. 

Rule 17. No member of the industry shall discount contracts cov- 
ering sales made by his distributors without his making proper 
charge for this service in accordance with the practice of financing 
or discount companies rendering a similar service. 

Rule 18. No member of the industry shall post-date or pre-date 
any contract, invoice, quotation, or receipt, withhold from or insert 
in any contract, invoice, quotation, or receipt any statement which 
makes such contract, invoice, quotation, or receipt an inaccurate 
statement either in whole or in part or accept or oner to accept any j 



72 

such contract with the effect of injuring the business of a competitor 
or violating the provisions of this Code. 

Rule 19. Other Unfair Trade Practices. — Nothing in this Code 
shall limit the effect of any adjudication by the Courts or holding 
by the Federal Trade Commission on complaint, finding, and order 
that any practice or method is unfair, providing that such adjudi- 
cation or holding is not inconsistent with any provision of the Act or 
of this Code. 

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

Section 1. Within thirty (30) days after the effective date of this 
Code each member of the industry shall file and shall maintain on 
file with the Code Authority, or with such agency as the Code Au- 
thority may designate, the member's most recently published cata- 
logues and specifications and a full and complete price list with 
maximum discounts applicable thereto for all his standard products. 
Such price list and/or maximum discounts shall be based f.o.b. 
shipping point and include all terms and conditions of sale to each 
of the member's class of trade, provided, however, that no such price 
list and/or maximum discount applicable thereto shall provide for 
prices less than the member's individual cost as may be determined 
by Rule 10, of Article VII. 

Section 2. In the event of any change by any member of the 
industry in any price, maximum discount, specification, term or con- 
dition of sale, he shall file full and complete copies of every such 
change with the Code Authority, but not exceeding seven (7) day 3 
in advance of the effective date of any such change. 1 

Section 3. Such catalogues, specifications, price lists, discounts 
and terms and conditions of sale together with any changes thereto 
shall be open to inspection at all reasonable times by any interested 
party. 

Section 4. No member of the Industry shall sell, pay a rebate, or 
allow a deduction at any time to any person except in accordance 
with his prices, maximum discounts, terms and conditions of sale 
then in effect and filed in the manner described herein, except as 
provided in Rule 14 of Article VII. Each member of the Industry 
shall have the right individually to file new prices, maximum dis- 
counts, terms, and conditions of sale from time to time, as herein 
provided. 

Section 5. No member of the industry shall render any service 
other than advice and consultation to any purchaser of any product 
of the Industry in connection with the sale or installation of any 
product unless a schedule of such services shall have been previously 
filed with the Code Authority pursuant to Section 1 hereof, and un- 
less fair compensation for such services shall be paid by such 
purchaser. 

Section 6. No member of the industry shall sell any industry 
product contrary to his published prices, discounts, or terms of sale ; 
and since a substantial majority of the industry's products are sold 
direct by the manufacturer to the consumer, and since the purpose 
and effect of this Article would be otherwise defeated, it shall be 



1 See paragraph 2 of order approving this Code. 



73 

an unfair method of competition for any member of the industry 
to distribute to the user industry products indirectly through an 
agent, dealer, broker, jobber, or otherwise, contrary to his published 
prices, discunts, or terms of sale. 2 

Article IX — Modification 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of subsection (b) of Section 10 of the Act, from time to 
time to cancel or modify any order, approval, license, rule or regula- 
tion 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 President. 

Article X — Monopolies, Etc. 

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

Article XI — Price Increases 

Whereas, the policy of the Act to increase real purchasing power 
will be made 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 — Registration or Members of the Industry 

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

Every member of the industry shall, within thirty (30) days from 
the effective date hereof, or the date upon which such member be- 
comes subject thereto, whichever is latest, register the full name 
of its enterprise, together with a statement of the number of shops, 
establishments or separate units thereof and their location, with 
the Code Authority. Every such member of the industry who may. 
open for business an additional shop, establishment or separate unit 
arter such registration shall, within thirty (30) days after such 
opening, register the same in like manner. 

Article XIII — Effective Date 

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

Approved Code No. 884. 
Registry No. 1331-02. 



• Deleted as per paragraph 2 of order approving this Code. 

o 



Approved Code No. 335 
CODE OF FAIR COMPETITION 

FOR THE 

ART NEEDLEWORK INDUSTRY 

As Approved on March 16, 1934 



ORDER 



Code of Fair Competition for the Art Needlework 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 Art Needlework Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 

c\ i t*pp T PCi i~o trip ■ T'pmriPTir * 

^ 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, 

Division A dministrator. 

Washington, D.C., 

March 16, 193^. 

46824° 425-86 34 (75) 



REPORT TO THE PRESIDENT 



The President, 

The White House. 



INTRODUCTION 



Sir: This is the report of the Administrator on the application 
for, and the public hearing on, the Code of Fair Competition for 
the Art Needlework Industry as proposed by the Art Needlework 
Association. The public hearing was conducted in Washington on 
January 16, 1934. Every person who requested an appearance was 
freely heard in accordance with statutory and regulatory require- 
ments. 

There are estimated to be 62 concerns in the Industry, 37 of which 
are members of the Association and account for approximately 80% 
of the total volume of business according to the figures presented 
by the Art Needlework Association. 

ECONOMICAL AND STATISTICAL MATERIAL 

The volume of sales in 1929, which was the peak year, was $22,- 
000,000 and the total employment was 5.000 employees. The esti- 
mated volume of sales for 1933 is set at $14,000,000 and the number 
of employees at 3,500. 

The representatives of the Industry claim that the employment 
figures will be increased by at least 15% when the Code goes into 
effect. There will also be* an increased purchasing power for the 
individual employee under the Code. 

RESUME OF CODE PROVISIONS 

The Code establishes forty (40) hours as the basic week for pro- 
duction and thirteen ($13.00) Dollars per work week as the minimum 
rate of pay. 

It is to be noted that there is a provision which outlaws " home 
work " by April 1st, except for the finishing of samples and display 
models not intended for resale. 

Trade practices are standard and their application should bring 
about stabilized competitive conditions. 

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 

(76) 



77 

removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of 
Industry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanctions and super- 
vision, by eliminating unfair competitive practices, by promoting 
the fullest possible utilization of the present productive capacity 
of Industries, by avoiding undue restriction of production (except 
as may be temporarily required), by increasing the consumption 
of industrial and agricultural products through increasing pur- 
chasing power, by reducing and relieving unemployment, by im- 
proving standards of labor, and by otherwise rehabilitating 
Industry. 

(b) Said Industry normally employs not more than 50,000 em- 
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 limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof, and that the applicant asso- 
ciation is an industrial association truly representative of the afore- 
said Industry; and that said association imposes no inequitable 
restrictions on admission to membership therein. 

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

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

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

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

Hugh S. Johnson, 

A dministrator. 
March 16, 1934. 



CODE OF FAIR COMPETITION FOR THE ART NEEDLE- 
WORK INDUSTRY 

AETICLE I PUEPOSES 

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

Aeticle II — Definitions 

The term "Art Needlework Industry " as used herein includes the 
stamping and/or importing and/or original sale of goods for art 
needlework; the processing and/or importation of worsted, silk, 
rayon, linen, and cotton yarns and other fibres exclusively to be used 
for hand embroidery, hand-knitting, crocheting, and other art 
needlework; the sale of art needlework accessories and tapestry 
needlepoint, and such branches or subdivisions thereof as may from 
time to time be included under the provisions of this Code. This 
definition does not include the " manufacture of sewing, crochet, em- 
broidery, and/or darning cotton thread " as incorporated in the 
Code of Fair Competition for the Cotton Textile Industry by amend- 
ment approved on November 8, 1933. 

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

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

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

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

Aeticle III — Houes 

1. Maximum Hours. — No employee, except outside salesmen and 
employees engaged in a managerial capacity who receive not less 
than Thirty-five ($35.00) dollars a week, shall be permitted to work 
in excess of forty (40) hours in any one week or eight (8) hours in 
any twenty-four (24) hour period, except that an office employee 
may be permitted to work not more than sixty (60) additional hours 

(78) 



79 

in any calendar year but not in excess of four (4) hours in any one 
week provided that time and one-third be paid for such additional 
hours. 

2. Exceptions as to Hours. — The maximum hours fixed in the 
foregoing section shall not apply to any employee on emergency 
maintenance or emergency repair work involving breakdowns or pro- 
tection of life or property, but in any such special case at least one 
and one-third times his normal rate shall be paid for hours worked 
in excess of the maximum hours herein provided. 

3. Standard Week. — No employee shall be permitted to work more 
than six (6) days in any seven (7) day period. 

4. Employer Working as Employee. — Any member of the Industry 
who does the work of, or assists in, the actual manufacture of prod- 
ucts of this Industry, shall be subject to the provisions of this Code 
as to hours of labor. 

5. Employment by Several Employers. — No employer shall know- 
ingly 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. Minimum Wage. — No employee shall be paid at less than the 
rate of Thirteen ($13.00) Dollars per week of forty (40) hours. 

2. Piecework Compensation — Minimum Wages. — This Article es- 
tablishes a minimum rate of pay, irrespective of whether an employee 
is actually compensated on a time rate, piece-work or other basis. 

3. Wages Above Minimum,. — No employee whose hours of work 
per week are reduced by the provisions of this Code shall be paid 
less than he or she was paid for the normal full time week in the 
four weeks ended June 17, 1933. A definite plan for the adjustment 
of those wages above the minimum herein prescribed shall be pre- 
sented to the Administrator for his approval within thirty (30) days 
of the effective elate of this Code. 

4. Female Employees. — Female emplo} r ees performing substan- 
tially the same work as male employees shall receive the same rate of 
pay as male employees. 

Article V — General Labor Provisions 

1. Child Labor Provision. — No person under sixteen (16) years of 
age shall be employed in the Industry, nor anyone under eighteen 
(18) years of age at operations or occupations hazardous in nature 
or detrimental to health. The Code Authority shall submit to the 
Administrator not later than sixty (60) days after the effective date 
of this Code, a list of such occupations. In any State, an employer 
shall be deemed to have complied with this provision if he shall 
have on file a certificate or permit duly issued by the authority in 
such State empowered to issue employment or age certificates or 
permits, showing that the employee is of the required age. 

2. Provisions from the Act. — In compliance with Section 7 (a) 
of the Act, it is provided : 



80 

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

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

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

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

4. Reclassification of Employees. — Employers shall not reclassify 
employees or duties of occupations performed by employees so as to 
defeat the purposes of the Act or engage in any other subterfuge. 

5. Posting. — Each employer shall post in conspicuous places ac- 
cessible to employees full copies of Articles III, IV and V of this 
Code in ten point type or larger and the address of the nearest 
Compliance Board. 

6. Home Work. — All members of the Industry shall arrange to 
discontinue the system of home work by April 1, 1934. If, however, 
this provision works an unreasonable hardship on any employer 
he may, upon appeal to the Code Authority and subject to the ap- 
proval of the Administrator, be allowed additional time up to a total 
of two (2) months in which to complete its abolishment. 

This provision shall not prohibit home work on the finishing of 
samples and display models not intended for resale, but the name 
and address of every employee so engaged shall be reported to the 
Code Authority. 

7. Discharging of an Employee. — No employee shall be dismissed 
by reason of making an honest complaint or giving truthful evidence 
with respect to an alleged violation of this Code. 

8. Standards for Safety and Health. — Every employer shall pro- 
vide for the safety and health of his employees at the place and 
during the hours of their employment. Standards for safety and 
health shall be submitted by the Code Authority to the Administrator 
within six (6) months after the effective date of this Code. 

Article VI — Organization, Powers and Duties of Code Authority 

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

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



81 

(b) The Code Authority members shall be selected as follows: 
Each member of the Industry, who qualifies as provided in Section 

3 of this Article, shall have one vote in the nomination and election 
to be arranged by the proponents of the Code within one month of 
the effective date thereof, unless otherwise provided, with the 
approval of the Administrator. In the interim, the Executive 
Committee of the Art Needlework Association shall act in this 
capacity. 

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

2. Each trade or industrial association, directly or indirectly par- 
ticipating in the selection or activities of the Code Authority, shall 
(1) impose no inequitable restrictions on membership, and (2) submit 
to the Administrator true copies of its Articles of Association, By- 
Laws, regulations, and any amendments when made thereto, together 
with such other information as to membership, organization, and 
activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

3. Members of the Industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority and to 
participate in the selection of the members thereof and to use the 
N.R.A. Insignia by assenting to and complying with the require- 
ments of this Code and sustaining their reasonable share of the 
expense of preparation, presentation and administration of this 
Code. Such reasonable share of the expenses of administration shall 
be determined by the Code Authority, subject to review by the 
Administrator, on the basis of volume of business and/or such 
other factors as may be deemed equitable. 

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

5. Poiwers and Duties. — The Code Authority shall have the follow- 
ing powers and duties in addition to those elsewhere provided in 
this Code to the extent permitted by this Act : 

(a) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code, in accord- 
ance with the powers herein granted, to submit to the Administrator 
such information as to its activities as the Administrator may deem 
necessary to effectuate the purposes of the Act. 

(b) To obtain from members of the Industry for use of the Code 
Authority, for the use of the Administrator in the administration 
and enforcement of the Code, and for the information of the Presi- 
dent, reports based on periods of one, two, or four weeks, or one 



82 

month, or multiples thereof, as soon as the necessary readjustment 
within the Industry can be made and to give assistance to members 
of the Industry in improving methods, or in prescribing a uniform 
system of accounting and reporting. All individual reports shall 
be kept confidential as to members of the Industry and only general 
summaries thereof may be published. 

(c) To receive complaints of violations of this Code, make investi- 
gations thereof and bring to the attention of the Administrator, rec- 
ommendations and information relative thereto for such action as 
in his discretion the facts warrant. 

(d) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein and to pay such trade associations and agencies the cost 
thereof, provided that nothing herein shall relieve the Code 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 of this Code. 

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

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

(g) To develop fair trade practices and industrial planning, in- 
cluding the regularization of employment and stabilization of em- 
ployees for the Industry, any such recommended practices or regu- 
lations to be presented as Amendments to the Code, shall be subject 
to the approval of the Administrator. 

(h) The Code Authority may coordinate the Administration of 
this Code with such other Codes, if any, as may be related to the 
Industry, or any subdivision thereof, and may assist in promoting 
joint action upon matters of common interest by establishing a joint 
Advisor}^ Board to which one or more of its members shall be dele- 
gated. 

(i) To initiate, consider, and make recommendations for the modi- 
fication or amendment of this Code. 

(j) The Code Authority may appoint and remove and fix the 
compensation of such employees, accountants, attorneys, and officers 
as it shall deem necessary or proper for the purpose of administer- 
ing the Code. 

(k) The Code Authority shall investigate the problem of design 
piracy and as soon as practicable make recommendations in con- 
nection therewith to the Administrator. 

(1) The Code Authority may grant a temporary extension, sub- 
ject to the approval of the Division Administrator and/or the Ad- 
ministrator, of the hours of work of factory employees upon a show- 
ing by the member requesting such extension that the limitations of 
his plant and equipment will not permit an expansion in the number 
of factory employees, and that such restriction works an undue hard- 
ship upon said member, but the granting of such permission must 
not allow such member an unfair competitive advantage nor work to 
the detriment of other members. 



83 

(m) The Code Authority shall study the necessity for overtime 
work and shall recommend to the Administrator a definite plan for 
its limitation, within four (4) months of the effective date. Such 
plan, upon approval by the Administrator after such hearing as he 
may require, shall become operative as part of this Code. 

Article VII — General, Administrative Provision 

1. In addition to information required to be submitted to any Code 
Authority, there shall be furnished such statistical information as 
the Administrator may deem necessary for the purposes recited in 
Section 3 (a) of the National Industrial Recovery Act to such Fed- 
eral and State agencies as the Administrator may designate; nor 
shall anything in this Code relieve any person of any existing obli- 
gation to furnish reports to Government agencies. 

2. An appeal from any action by the Code Authority affecting the 
rights of any employer or employee in the Industry may be taken 
to the Administrator. 

3. If the Administrator shall determine that any action of a Code 
Authority or any agency thereof may be unfair or unjust or con- 
trary to the public interest, the Administrator may require that such 
action be suspended to afford an opportunity for investigation of 
the merits of such action and further consideration by such Code 
Authority or agency pending final action which shall not be effec- 
tive unless the Administrator approves or unless he shall fail to dis- 
approve after thirty days' notice to him of intention to proceed with 
such action in its original or modified form. 

Article VIII — Trade Practices 

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

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

2. Commercial Bribery. — No member of the Industry shall give, 
permit to be given, or directly offer to give, anything of value for 
the purpose of influencing or rewarding the action of any employee, 
agent, or representative of another in relation to the business of the 
employer of such employee, the principal of such agent, or the repre- 
sented party, without the knowledge of such employer, principal, or 
party. Commercial bribery provisions shall not be construed to pro- 
hibit free and general distribution of articles commonly used for 
advertising except so far as such articles are actually used for com- 
mercial bribery as hereinabove defined. 

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



84 

4. Consignment. — No member of the Industry shall ship goods on 
consignment except under circumstances to be defined by the Code 
Authority, where peculiar circumstances of the Industry require 
the practice. This provision does not apply to bona fide samples. 
Any member of the Industry may take back yarn for exchange or 
credit provided that there be a replacement order of equal value 
accompanying the return of yarn to be shipped immediately. 

5. False Invoices. — To withhold from or insert in an invoice or 
order statements or entries which make such documents a false 
record, wholly or in part, of the transaction represented on the face 
thereof. 

6. Terms. — The terms of sale shall not be in excess of a cash dis- 
count of 2/10 with the option of sixty extra or 3/10 E.O.M. Ship- 
ments made on the 25th of the month and after shall be allowed as 
of the first of the month. No further dating. 

7. Sales Below Cost. — To sell or offer to sell any product below 
its cost except to meet the competition of a member of the Industry 
whose cost is lower. Cost is defined as the sum of direct material 
and direct labor plus overhead. The term " overhead " shall be 
defined by the Code Authority with the approval of the Adminis- 
trator. The sale of finished samples below cost is not prohibited 
by the provisions of this section. 

8. Sale of Seconds. — The sale or offer for sale, at a reduced price, 
of rejects, factory seconds, or discontinued lines by any member of 
the Industry in excess of ten per cent (10%) of his total production. 
Any such sale shall be reported to the Code Authority. Sales in 
excess of ten per cent (10%) may be permitted by the Code Author- 
ity, upon a finding that such restriction works an undue hardship 
upon a member of the Industry, but the granting of such permission 
must not allow such member an unfair competitive advantage nor 
work to the detriment of other members. The provisions of this 
Section shall be subject to the right of review by the Administrator. 

Article IX — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of Subsection (b) of Section 10 of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, 
approval, license, rule, or regulation issued under Title I of said Act 
and specifically, but without limitation, to the right of the President 
to cancel or modify his approval of this Code or any conditions 
imposed 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 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. 



85 

Article XI — Price Increases 

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

Article XII — Effective Date 

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



Approved Code No. 335. 
Registry No. U31-08. 



o 



Approved Code No. 336 
CODE OF FAIR COMPETITION 

FOR THE 

COVERED BUTTON INDUSTRY 

As Approved on March 16, 1934 



ORDER 



Code of Fair Competition for the Covered Button 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 Covered Button Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 
directed to the President : 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval recommended : 
A. D. Whiteside, 

Division Administrator, 

Washington, D.C., 

March 16, 1934. 

46825° 425-87 34 (87) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : The Public Hearing on the Code of Fair Competition for the 
Covered Button Industry as proposed by the Covered Button 
Manufacturer's Institute, Inc., was conducted in Washington on 
October 11, 1933. 

Every person who requested an appearance was fairly heard at 
the Public Hearing in accordance with the requirements of the Na- 
tional Recovery Administration. 

The Code in final form has received the approval of the Industrial, 
Labor and Consumers' Advisory Boards and the approval of the 
Legal Division of the National Recovery Administration. The 
Research and Planning Division has also examined the Code and 
rendered a report on its provisions. The Association through its 
duly accredited officers has approved the final draft of the Code on 
behalf of the Industry. 

The Industry as defined in the Code includes the manufacture of 
buttons and buckles which have as their base a mould and are cov- 
ered with the self-same material of which the button or buckle be- 
comes a part. 

This industry may be said to center in the Eastern Seaboard 
States, particularly, New York and Pennsylvania. It performs prac- 
tically entirely a converting or assembling function, nearly all of 
the manufacturers buying a part of the materials used, and securing 
the balance from their customers for whom the commodity is made. 
The industry is highly specialized and particularly caters to the 
dress and cloak and suit industries. The Industry is directly affected 
by style variations in the industries to which it caters. 

RESUME OF THE CODE 

Article I sets forth certain definitions. 

Article II contains the maximum hour provisions. Exceptions 
are made to the maximum hours provisions for office help and 
salesmen. 

Article III sets forth the minimum wage provisions. The basic 
minimum rate of fourteen dollars ($14.00) per week of thirty-seven 
and one-half (37y 2 ) hours, is provided for employees in New York 
City, and a minimum of thirteen dollars ($13.00) per week for em- 
ployees employed outside of New York City. Exceptions to these 
basic minimums are made for learners and errand boys. 

Article IV eliminates child labor and prohibits the employment 
of minors under eighteen (18) years of age at operations or occupa- 
tions hazardous in nature or detrimental to health. This article also 
contains provisions mandatory under the Act. 

(88) 



89 

Article V provides for the establishment of a Code Authority and 
defines its powers and duties. 

Article VI provides for the filing of prices with the Code Author- 
ity and for the dissemination of price information by the Code 
Authority. 

Members of the Industry are prohibited from selling products at 
other prices or on other terms than contained in their price lists on 
file with the Code Authority. 

Article VII defines certain trade practices, which have heretofore 
existed in the Industry as unfair, and provides that these practices 
be eliminated. 

Article VIII contains the method by which the Code may be 
modified or amended. 

Article IX contains the provisions in reference to monopolies and 
discrimination against small enterprises required by the Act. 

Article X states the effective date of the Code. 

LABOR PROVISIONS POSSIBLE REEMPLOYMENT 

Hours. — The average working week in the Industry during the 
year 1932 was approximately forty-eight hours. Since the majority 
of the members of the Industry have adopted the President's Re- 
employment Agreement, the Industry is already working on the 
forty hour basis. The Code as approved, providing for a maximum 
work week of thirty-seven and one-half hours, will bring about a 
further reduction in hours and probably an increase in employment. 
The total number of employees in the Industry has been increased 
during the past six months approximately twenty-five percent. 

FINDINGS 

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

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by including and maintaining united action of labor and manage- 
ment under adequate governmental sanctions and supervisions, 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 tem- 
porarily 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 industry. 



90 

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

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

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

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

For these reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 

March 16, 1934. 



CODE OF FAIR COMPETITION FOR THE COVERED 
BUTTON INDUSTRY 

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 Covered Button Industry and shall be 
the standard of fair competition for this industry, and shall be bind- 
ing upon every member thereof. 

Article I — Definitions 

1. The term " industry " as used herein includes the manufacture 
of Buttons and Buckles which have as their base a mold and are cov- 
ered with the selfsame material of -the article or product of which 
the button or buckle becomes a part. 

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 anyone for whose 
benefit such an employee is so engaged. 

4. The term " member of the industry " as used herein includes 
anyone engaged in the industry as above defined either as an employer 
or on his own behalf. 

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

Article II — Hours of Labor 

1. No employee shall be permitted to work in excess of thirty seven 
and one-half (37%) hours in any one week, or more than seven and 
one-half (7y 2 ) hours in any twenty-four (24) hour period, or more 
than five (5) days in any one week, except as hereinafter provided. 

2. Office employees may be permitted to work a maximum of forty- 
four (44) hours in any one Aveek. 

3. The Code Authority upon request shall permit overtime for 
employees engaged in the manual or mechanical process of manufac- 
ture for a period of not more than sixteen (16) weeks during each 
calendar year. The total number of hours overtime worked by any 
employee in each calendar year shall not exceed one hundred and 
twenty (120) hours; nor shall any employee be permitted to work 
more than ten (10) hours overtime in any one week. 

4. The provisions of this Article shall not apply to outside 
salesmen. 

5. No member of the industry nor any employee shall work in his 
shop or factory at manufacturing operations after the regular hours 
herein specified. 

(91) 



92 

6. Any member of the industry who does substantially the same 
work as an employee shall comply with the provisions as to hours of 
labor. 

7. Subject to approval by Administrator the Code Authority may 
designate the hour before which work shall not begin and the hour 
after which work shall cease for all shifts of work and may deter- 
mine in which localities this rule shall apply. 

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

Article III — Wages 

1. No employee shall be paid less than at the rate of fourteen 
dollars ($14.00) per week of thirty-seven and one-half (37%) hours 
when employed in New York City ; nor less than at the rate of thir- 
teen dollars ($13.00) per week when employed outside of New York 
City, except as hereinafter provided. 

2. Errand boys may be paid not less than at the rate of twelve 
dollars ($12.00) per week of thirty-seven and one-half (37y 2 ) hours. 
When errand boys are engaged at manual or mechanical processes 
of manufacture they shall receive the rates of pay ^provided in the 
foregoing section of this Article. 

3. Learners may be paid not less than at the rate of eighty per- 
cent (80%) of the minimum wage provided for herein for a period 
not to exceed three (3) months provided that at no time shall the 
total number of learners employed by any one employer exceed ten 
percent (10%) of the total number of employees. However, any em- 
ployer shall be entitled to employ at least one learner. Errand boys, 
however, shall not be paid less than at the rate of twelve dollars 
($12.00) per week. 

4. Employees shall be paid not less than at the rate of time and 
one half their normal wage rate for all time worked in excess of 
the maximum hours provided in Article II. 

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. 

6. No employer shall reduce the weekly compensation for employ- 
ment of employees receiving more than the minimum wages herein- 
above set forth, notwithstanding the hours of work for such em- 
ployment may be hereby reduced. The rate of wages paid to piece 
workers shall be raised equitably to compensate for the reduction 
of hours under this Code. 

7. Female employees performing substantially the same work as 
male emplo}'ees shall receive the same rate of pay as male employees. 

Article IV — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the industry, nor anyone under eighteen years of age at operations 
or occupations hazardous in nature or detrimental to health. The 
Code Authority shall submit to the Administrator before May 1, 
1934, a list of such occupations. In any State an employer shall be 



93 

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 em- 
powered 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 la- 
bor, 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 ap- 
proved or prescribed by the President. 

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

6. Employers shall not reclassify employees or duties of occupa- 
tions performed by employees or engage in any other subterfuge 
so as to defeat the purpose of the Act. 

7. Each employer shall post in conspicuous places accessible to 
employees full copies of Articles II, III and IV of the Code. 

Article V — Organization, Powers and Duties of the Code 

Authority 

a. organization and constitution 

1. There shall forthwith be constituted a Code Authority con- 
sisting of : 

(a) Seven (7) representatives of the Industry or any such other 
numbers as may be approved from time to time by the Adminis- 
trator, to be selected as hereinafter provided. 

(b) One representative to be appointed by the Administrator 
upon the nomination of the Labor Advisory Board. 

(c) Such additional representatives without vote, not to exceed 
three, as the Administrator may appoint to represent such groups 
or interests or such governmental agencies as he may designate. 

2. The representatives of the Industry shall be selected by the 
Covered Button Manufacturers Institute. 

3. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 
by-laws, regulations, and any amendments when made thereto, 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 



94 

provisions of the Act, the Administrator may prescribe such hear- 
ings as he may deem proper ; and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an 
appropriate modification in the method of selection of the Code 
Authority. 

5. Members of the industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority by assent- 
ing to and complying with the requirements of this Code and sus- 
taining their reasonable share of the expenses of its administration. 
Such reasonable share of the expenses of administration shall be 
determined by the Code Authority, subject to review by the Admin- 
istrator, on the basis of volume of business and/or such other fac- 
tors as may be deemed equitable. 

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

7. If the Administrator shall determine that any action of a code 
authority or any agency thereof may be unfair or unjust or con- 
trary to the public interest, the Administrator may require that such 
action be suspended to afford an opportunity for investigation of 
the merits of such action and further consideration by such code 
authority or agenc3 T pending final action which shall not be effec- 
tive 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. 

B. POWERS AND DUTIES 

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

(a) To elect officers and to assign to them such duties as it may 
consider advisable, and to provide rules for its procedure, and its 
continuance as the administrative agency of this Code, in accordance 
with the terms of the Act and the principles herein set forth. 

(b) To receive, investigate, and adjust complaints of violations 
of this Code, and based upon such investigations and after such hear- 
ings as it may deem proper, to make recommendations in respect 
thereto to the proper authorities for the prosecution of such viola- 
tions; provided, however, that this shall not be construed to deprive 
duly authorized governmental agencies of their power to enforce 
the provisions of this Code or of the Act. The application of this 
section shall be subject to the approval of the Administrator and 
shall be subject to any rules and regulations he may issue pursuant 
thereto. 

(c) To obtain from time to time from employers in the industry 
reports in respect to wages, hours of labor, conditions of employ- 
ment, number of employees and other matters pertinent to the pur- 
poses of this Code, as the Code Authority may prescribe, and to 



95 

submit periodical reports to the Administrator in such form and at 
such times as he may require, in order that the President may be 
kept informed with respect to the observance thereof. 

No individual reports shall be disclosed to any other member of 
the industry or any other party except to such governmental agencies 
as may be directed by the Administrator. 

(d) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein, and to pay such agents the cost thereof; provided that such 
agency shall at all times be subject to and comply with the provisions 
of this Code ; and provided further, that nothing herein shall relieve 
the Code Authority of any of its duties and responsibilities here- 
under. 

(e) To coordinate the administration of this Code with such 
other codes if any, as may be related to the Covered Button Manu- 
facturing Industry, or any subdivisions thereof, with a view to 
promoting joint and harmonious action upon matters of common 
interest. 

(f ) To make surveys, to compile reports, to collect statistics and 
trade information, to investigate unfair trade practices, to make 
recommendations for fair trade practices, and otherwise assist the 
Administrator in effecting the purposes 01 this Code and the Act. 

(g) To provide ways and means for financing the operation of 
said Code Authority and to determine an equitable method of 
apportioning in the industry the cost of administering this Code. 
Money raised in any manner shall not exceed in amount such reason- 
able cost. The application of this section shall at all times be subject 
to review by the Administrator and shall be subject to any rules and 
regulations which may be issued by the Administrator. 

(h) To cooperate with the Administrator in regulating the use 
of the N.R.A. insignia solely b}^ those employers who have assented 
to this Code. 

(i) The Code Authority shall have the power to formulate 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 prin- 
ciples of such methods. The application of this provision shall be 
subject to the approval of the Administrator. 

2. In addition to the information required to be submitted to the 
Code Authority, all members of the industry shall furnish such 
adequate information as the Administrator may deem necessary for 
the purposes recited in Section 3 (a) of the Act to such federal and 
state agencies as the Administrator may designate. Nothing in this 
Code shall relieve any one of any existing obligations to furnish 
reports to government agencies 

Article VI — Price Listing 

Members of the Industry shall file with the Code Authority a 
schedule of prices and terms of sale for such products as the Code 
Authority may designate, within thirty (30) days after the effective 



96 

date of this Code and from time to time thereafter. Such schedules 
may be revised by filing new price lists with the Code Authority. 
The Code Authority shall immediately send copies of all schedules 
filed to all members of the Industry who manufacture the products 
covered by such schedules. Members of the Industry shall not sell 
their products at other prices or on other terms than set forth in 
their price lists which have been filed with the Code Authority. 

Article VII — Trade Practices 

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

1. No member of the Industry shall sell any products upon any 
other terms, except as expressly set forth in the order, contract of 
sale, or the invoice pertaining to such sale. 

2. No member of the Industry shall mark or brand any of the 
products of this Industry in such a manner as to mislead or deceive 
customers, or prospective customers, as to the grade, quality, quan- 
tity, substance, character, nature, origin, size, finish, or preparations 
of any of the products of the industry. 

3. No member of the Industry shall make or cause to be made, or 
permit to be made, or publish any false, untrue, or deceptive state- 
ment by way of advertisement or otherwise concerning the grade, 
quality, quantity, substance, character, nature, origin, size, prepara- 
tion of any product of the Industry having the tendency and capac- 
ity to mislead or deceive purchasers or prospective purchasers. 

4. No member of the Industry shall make false or derogatory 
reference, either written or printed, of competitors or their products, 
or circulate harmful rumors regarding competitor's products, or 
personal or financial representation. 

5. No member of the Industry shall ship merchandise on 
memoranda or on consignment. 

6. No member of the Industry shall sell merchandise or offer 
same for sale below cost of production of such merchandise; how- 
ever, any member of this Industry may sell below his own cost to 
meet the competition of another member of the Industry whose costs 
are lower. Cost for the purposes of this provision shall be deter- 
mined in accordance with the accounting system provided for in 
Article V hereof. 

7. No member of the Industry shall sell merchandise at a cash 
discount in excess of two percent (2%) for payment on the fifteenth 
day of the month following shipment. 

8. No member of the Industry shall give sample Buttons to cus- 
tomers or prospective customers, unless a reasonable payment has 
been made therefor. 

9. No member of the Industry shall sell buttons other than at 
prices based upon gross lots or fractions thereof. 

10. No member of the Industry shall secure or attempt to secure, 
or elicit any information regarding any competitor as to the method 
of such competitor of doing business, nor lists of the customers of 
any such competitor. 

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



97 

12. No member of the Industry shall maliciously induce or attempt 
to induce the breach of an existing oral or written contract between 
a competitor and his customer or source of supply, or interfere with 
or obstruct the performance of any such contractual duties or 
services. 

13. 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. 

14. No member of the Industry shall give, permit to be given, or 
directly offer to give, anything of value, for the purpose of influenc- 
ing or rewarding the action of any employee, agent, or representative 
of another in relation to the business of the employer of such em- 
ployee, the principal of such agent or the represented party, without 
the knowledge of such employer, principal or party. Commercial 
bribery provision shall not be construed to prohibit free and general 
distribution of articles commonly used for advertising except so 
far as such articles are actually used for commercial bribery as 
hereinabove defined. 

15. No member of the Industry shall publish or circularize threats 
or suits for infringement of patents, or trade marks, or any other 
legal proceedings not in good faith with the tendency or effect of 
harassing competitors or intimidating their customers. 

Article VIII — Modifications 

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

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

Article IX — Monopolies 

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

Article X — Effective Date 

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

Approved Code No. 336. 
Registry No. 1612-1-01. 

o 



Approved Code No. 337 
CODE OF FAIR COMPETITION 

FOR THE 

COAL DOCK INDUSTRY 

As Approved on March 16, 1934 



ORDER 



Code of Fair Competition for the Coal Dock 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 Coal Dock Industry, and hearings having 
been duly held thereon and the annexed report on said Code, con- 
taining findings with respect thereto, having been made and directed 
to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial- Recovery, 
pursuant to authority vested in me by Executive 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: 
K. M. Simpson, 

Division A administrator. 
By R. W. Lea, 

Assistant Administrator for Industry. 

Washington, D.C. 

March 16, 1934. 

(99) 



REPORT TO THE PRESIDENT 



The President, 

The White House. 



Sir: This is a report on the Code of Fair Competition for the 
Coal Dock Industry as revised after a public hearing conducted in 
Washington, D.C., on November 15, 1933, in accordance with the 
provisions of the National Industrial Recovery Act. 

THE INDUSTRY 

The operations of the Coal Dock Industry consist of the unloading 
of coal from vessels by the use of dock machinery and equipment 
and dock labor, storing, processing the coal where necessary, and 
reloading it into railroad cars or trucks and, in some instances, into 
vessels or tugs for bunker coal. In the New England Division where 
navigation is open all year around, the docks are comparatively 
small since only a small amount of coal needs to be stored upon them 
sufficient to insure continuous operation between the arrival of vessels. 
In the Northwest Division where navigation on the upper lakes is 
closed from approximately December 1st to May 1st of each year 
on account of frozen harbors, the docks are comparatively large as 
they must provide sufficient storage capacity to supply the communi- 
ties of the Northwest with coal through their bitter winters. 

Our Planning and Research Division reports that the Coal Dock 
Industry sold approximately 27,517,000 tons of coal in 1929 valued 
at $128,342,000 as compared with 20,075,000 tons in 1933 valued at 
$89,127,000. The reduction in tonnage and value since 1929 is due to 
severe competition with oil and gas as well as the general business 
depression. 

WAGE AND HOUR PROVISIONS 

Estimated Effect— During 1929 approximately 5,750 wage earners 
were employed in the Coal Dock Industry. It is estimated that the 
hour provisions of this Code will add 750 employees to this Industry's 
payroll, increasing employment approximately 15% over the 1933 
employment total. It is estimated that the payrolls will increase 
almost proportionately, or between 15% and 20% over the 1933 
payroll total. 

NORTHWEST DIVISION 

Normal Hours. — Watchmen forty-eight (48) hours per week with 
one day off each week; other employees eight (8) hours per day, 
forty (40) hours per week. Exceptions include executives, officers 
and supervisory employees receiving $35 or more per week and 
out-side salesmen. 

(100) 



101 

Minimum Wages. — $15 per week for clerical employees; forty (40) 
cents per hour for watchmen; forty-five (45) cents per hour for other 
employees. Further provision is made that all employers shall main- 
tain the same hourly rate differential (expressed in percentage of the 
hourly rate) between the different classes of employees as existed as 
of June 1, 1933, but this provision shall not apply to executives, 
officers and employees acting in a supervisory capacity receiving $35 
or more per week. 

Overtime Penalty. — In cases of accident or when longer hours are 
necessary to discharge cargo from waiting vessels or to provide for 
the necessities of dependent communities in extreme weather, longer 
hours may be worked, but in no event more than 350 hours in any 
two calendar months, provided that overtime be paid for at the rate 
of time and one-half, except for watchmen who shall be paid straight 
time. 

Age Limit. — The employment of any person under eighteen (18) 
years is prohibited. 

NEW ENGLAND DIVISION 

Normal Hours. — For clerical employees eight (8) hours per day; 
forty-two (42) hours per week for eight (8) months and thirty -six 
(36) hours per week for the remaining four (4) months of the year. 
For employees engaged directly in connection with unloading, stor- 
age and delivery service, eight (8) hours per day, forty-eight (48) 
hours per week during eight (8) months and forty (40) hours per 
week for the remaining four (4) months of the year. Exceptions 
include executives and supervisory employees receiving not less 
than certain specified salaries, branch coal dock managers in ports of 
less than 15,000 population, watchmen and outside salesmen. 

Minimum Wages. — Fifty (50) cents per hour in the port of Bos- 
ton, forty (40) cents per hour in other New England ports. The 
weekly wage of any clerical or office employee shall not be less than 
forty (40) times the hourly rate provided for in any locality. 

Overtime Penalty. — Provision is made for payment at the rate of 
time and one-half for any hours worked in excess of any normal day 
or week. 

Age Limit. — The employment of any person under eighteen (18) 
years is prohibited. 

vessel fueling: division 

Normal Hours. — Forty (40) hours per week from December 16 
to March 31, inclusive; fifty-six (56) hours per week during the 
season of navigation on the Great Lakes (April 1 to December 15, 
inclusive). Exceptions include executives, officers and employees 
acting in supervisory capacity receiving $35 or more per week. 

Minimum Wages. — $15 per week for clerical employees; forty (40) 
cents per hour for all other employees including watchmen. Fur- 
ther provision is made that all employers shall maintain the same 
hourly rate differential (expressed in percentage of the hourly rate) 
between the different classes of employees as existed as of June 1, 
1933, but this provision shall not apply to executives, officers and 



102 

employees acting in a supervisory capacity receiving $35 or more 
per week. 

Overtime Penalty. — Provision is made for payment at the rate 
of time and one-half for any hours worked in excess of the normal 
week. 

Age Limit. — The employment of any person under eighteen (18) 
years of age is prohibited. 

Further provision is made for the establishment of a committee 
of five members consisting of two members of the Industry to be 
selected by the Vessel Fueling Divisional Code Authority and two 
members representing labor appointed by the Labor Advisory Board 
of the National Recovery Administration and the Administration 
member of the Vessel Fueling Divisional Code Authority who shall 
conduct an investigation regarding the wage rates and maximum 
hours provided herein and make its report and recommendation to 
the Administrator through the Divisional Code Authority within 
ninety da}^s from the effective date of this Code. 

MARKETING PROVISIONS 

No provision is made for any price regulation except that every 
member of the Industry shall so conduct his business as to avoid 
discrimination against any class or group of customers. Each mem- 
ber of the Industry shall within ten days after the effective date 
of this Code file with the Divisional Code Authority a list show- 
ing prices, terms and conditions of sale, other than solely at retail, 
for each grade, quantity and size of coal for each class of purchasers 
which such member of the Industry expects to sell, and the listed 
charges for handling services classified as to grade, size and quantity 
of coal which such member of the Industry expects to handle and 
the terms and conditions applicable thereto. Such lists of prices 
and charges shall become effective immediately upon receipt by the 
member of the Industry filing them of notice from the Divisional 
Code Authority of their receipt and filing, which notice shall be 
mailed by the Divisional Code Authority within twenty-four hours 
after receipt of the proposed charges and prices. Listed prices and 
charges may be revised from time to time by the member of the 
Industry filing revised lists of prices and charges with the Divisional 
Code Authority which shall become effective m the same manner as 
provided in the case of the original filing. A report of all sales 
showing quantities and prices shall be filed by each member of the 
Industry with the Divisional Code Authority immediately. 

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- 
ceeding 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- 



103 

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 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 groups 
and association are industrial groups and association truly repre- 
sentative of the aforesaid Industry; and that said groups and asso- 
ciation impose no inequitable restrictions on admission to member- 
ship therein. 

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

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

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

For these reasons the Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
March 16, 1934. 



CODE OF FAIR COMPETITION FOR THE COAL DOCK 

INDUSTRY 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code 
of Fair Competition for the Coal Dock Industry, and shall be bind- 
ing: on all the members thereof. 



■{-> 



Article I — Definitions 

Section 1. " Coal " shall mean any anthracite, semi-anthracite, 
bituminous, semi -bituminous, or lignite coal, briquettes, boulets, coke, 
gas-house coke, petroleum coke, petroleum carbon, or any manu- 
factured or patented fuel not sold by liquid or metered measure, fuel 
wood or wood-fuel products. 

Section 2. " Wholesaling " shall mean the selling or selling and 
delivering of coal in railroad cars or cargo vessels, subject, however, 
to the provisions of Article VI, Section 11, of this Code. 

Section 3. "Retailing" shall mean the selling or selling and de- 
livering of coal in other than railroad cars or cargo vessels subject, 
however, to the provisions of Article VI, Section 11, of this Code. 

Section 4. " The Coal Dock Industry " or " Industry " shall mean 
the discharging from vessels at any private dock of coal for sale, 
other than solely at retail or the selling, other than solely at retail, 
of coal so discharged (or both so discharging and so selling) and 
bunkering vessel with coal from docks equipped to receive coal by 
water and to store it (whether or not coal also is or can be re- 
ceived by rail). 

Section 5. " Member of the Industry " means all those engaged in 
the Coal Dock Industry. The retail operations of members of the 
Industry are not embraced within this Code but are covered by the 
Retail Solid Fuel Industry Code. 

Section 6. " President ", "Act ", "Administrator ", shall mean 
respectively the President of the United States, the National Indus- 
trial Recover}^ Act, and the Administrator under Title I of such Act. 

Section 7. " Employee " shall mean any one engaged in the Coal 
Dock Industry in any capacity receiving compensation for his serv- 
ices, irrespective of the nature or method of such compensation, ex- 
cept a member of the Industry. 

Section 8. " Employer " shall mean any one by whom any em- 
ployee is compensated or employed. 

Section 9. Population for the purposes of this Code shall be de- 
termined by reference to the latest Federal census, and as applied 
to any particular city the population for the metropolitan area as 
given in such census shall be used. 

(104) 



105 
Article II — Divisions 

For the purposes of this Code, the Industry shall be divided into 
separate divisions, as follows: 

1. Northwest Division, which shall include ports on Lake Supe- 
rior, St. Mary's River, and on the west bank of Lake Michigan north 
of the State of Illinois, excluding vessel fueling operations under the 
jurisdiction of the Vessel Fueling Division. 

2. New England Division, which shall include ports in the States 
of Main, New Hampshire, Massachusetts, Connecticut, Rhode Island, 
and Vermont. 

3. Vessel Fueling Division, which shall include vessel fueling op- 
erations on the Great Lakes and tributary waters. 

Other separate divisions may be created and extensions to the 
above divisions may be made where circumstances indicate such 
action is appropriate ; but the provisions of this Code shall not apply 
in any territory outside of the New England Division, the North- 
west Division, and the Vessel Fueling Division, unless and until 
such other Divisions are created by appropriate amendments to this 
Code. 

Article III — Employees Relations 

Section 1. Employees shall have the right to organize and bar- 
gain collectively through representatives of their own choosing, and 
shall be free from the interference, restraint, or coercion of 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 protec- 
tion. 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. Employers shall comply with the maximum 
hours of labor, minimum rates of pay, and other conditions of em- 
ployment, approved or prescribed by the President. 

Section 2. This article establishes minimum rates of pay which 
shall apply irrespective of whether an employee is actually compen- 
sated on a time rate, piece work, or other basis. 

Section 3. An employer shall make payment of all wages, when 
due, in lawful currency or by negotiable check therefor, payable on 
demand. These wages shall be exempt from any payments for pen- 
sions, insurance, or sick benefits other than those voluntarily paid 
by the wage earners, or required by State laws. Employers shall 
establish regular semi-monthly pay days, splitting the month so as 
to provide reasonable time (not to exceed 10 days) for the prepara- 
tion of pay rolls. 

Section 4. An employee shall be paid at least his normal rate of 
pay for all hours required to be spent at the place of employment or 
in connection with the discharge of duties of such employment. 

Section 5. No member of the Industry shall employ any person 
under the age of eighteen (18) years. 

Section 6. No employer shall as a subterfuge so as to defeat the 
purposes or provisions of the Act or this Code reclassify employees 

46826° 425-88 34 2 



106 

or duties of occupations performed or engage in any other such 
subterfuge. 

Section 7. Every employer shall make reasonable provision for 
the safety of his employees at the place and during the hours of their 
employment. 

Section 8. No employee shall be dismissed by reason of making 
a complaint or giving evidence with respect to a violation of this 
Code. 

Section 9. Each employer shall post and keep posted in ten point 
type or larger the full Labor Provisions of this Code applicable to 
his Division and the name and address of the nearest official place 
where Code violations may be reported, in conspicuous places readily 
accessible to the employees. 

Section 10. Northwest Division. — A. The maximum hours for all 
employees (except executives, officers and employees acting in a 
supervisory capacity receiving $35.00 or more per week, outside sales- 
men and watchmen) shall be eight hours per day and forty (40) 
hours per week ; provided, however, that in cases of accident, or when 
longer hours are necessary to discharge cargo from waiting vessels 
or to provide for the necessities of dependent communities in extreme 
weather, longer hours may be worked, but in no event more than 350 
hours in any two calendar months; provided, further, that time and 
one-half shall be paid for hours worked in excess of eight (8) hours 
per day or in excess of forty (40) hours per week, and time and one- 
half shall be paid for hours worked on Sundays and holidays, except 
for watchmen, who shall be paid straight time. Truck drivers and 
helpers shall not be considered outside salesmen. The maximum 
hours for watchmen shall be forty-eight hours per week and they 
shall have one day off each week. 

B. The minimum rates of pay for clerical employees shall be not 
less than $15.00 per week. 

C. The minimum hourly rate which shall be paid to employees, 
other than clerical employees and watchmen, shall be forty-five cents 
(45^). The minimum hourly rate for watchmen shall be forty 
cents (40tf). 

D. No employer shall pay any employee an hourly wage rate 
which will yield a lesser weekly wage for the full time week of 40 
hours established in this Code than such employee could have earned 
for the same class of work for a full time week of 48 hours at the 
hourly rates prevailing as of June 1, 1933, but this shall not increase 
the minimum hourly rate in this Division on docks on Lake Michi- 
gan. (This means 48 times the hourly rate as of June 1, 1933, 
divided by 40, or a 20% increase in the hourly rates which prevailed 
as of June 1, 1933, except that it shall not increase the minimum 
hourly rate in this Division on docks on Lake Michigan.) 

E. All employers shall maintain the same hourly rate differential 
(expressed in percentage of the hourly rate) between the different 
classes of employees as existed as of June 1, 1933, but this provision 
shall not apply to executives, officers and employees acting in a super- 
visory capacity receiving $35.00 or more per week. 

Section 11. New England Division. — A. Except as hereinafter 
expressly stipulated otherwise — 



107 

(1) No employee engaged directly in connection with unloading, 
storage and delivery service shall be permitted to work more than 
8 hours per day or 40 hours per week, from May 1 to August 31, 
inclusive, or for such alternate four months per year as may be sub- 
stituted therefor by the Divisional Code Authority unless, during 
this period, all hours worked in excess of 8 hours per day or in excess 
of 40 hours per week are paid for at the rate of time and one-half. 
For the remaining 8 months of each year no employee shall be per- 
mitted to work more than 8 hours per day nor more than 48 hours 
per week unless time and one-half is paid for each hour in excess of 
8 hours per day or in excess of 48 hours per week. 

(2) No clerical employees shall be permitted to work more than 
8 hours per day or 36 hours per week for the period from May 1 
to August 31, inclusive, or for such alternate four-months' period 
per year as may be substituted therefor by the Divisional Code Au- 
thority unless, during this period, all hours worked in excess of 8 
hours per day or in excess of 36 hours per week are paid for at 
the rate of time and one-half. For the remaining 8 months of 
each year no clerical employee shall be permitted to work more 
than 8 hours per day or 42 hours per week, unless time and one-half 
is paid for each hour in excess of 8 hours per day or in excess of 
42 hours per week. 

B. The maximum hours fixed in the foregoing section shall not 
apply to— 

(1) Executive and supervisory employees receiving not less than 
$35.00 per week in any port of 100,000 population or more and its 
trade area; not less than $30.00 per week in any port of less than 
100,000 and its trade area. 

(2) Branch coal dock managers in ports of less than 15,000 popu- 
lation, which ports are not part of a larger trade area, each branch 
coal dock to be restricted to one branch coal dock manager. 

(3) Watchmen. 

(4) Outside salesmen, provided that employees engaged in un- 
loading, loading, storage or delivery service shall not be classified 
as outside salesmen. 

C. Subject to the exceptions noted in sub-sections F and G of this 
section, no employee shall be paid less than the following hourly 
rates of wages, whether such wages are calculated upon a time, piece- 
work, commission, or other basis : 

Port of Boston 50 cents 

All other New England ports 40 cents 

D. (1) Except as hereinafter provided, no hourly, daily, or weekly 
rates of pay shall be reduced below those in effect on July 1, 1933. 

(2) Except as to clerical or office employees — no employee whose 
full time weekly hours as of July 1, 1933, are reduced by 20% or less, 
shall have his full time weekly earnings as of July 1, 1933, reduced. 
No employee whose full time weekly hours as of July 1, 1933, are 
reduced by more than 20% shall have his full time weekly earnings 
as of July 1, 1933, reduced by more than one-half of the percentage 
reduction in hours in excess of 20%. 

E. The weekly wage of any clerical or office employee shall not be 
less than that provided by 40 times the hourly rate in subsection C 



108 

for the port specified, regardless of whether the week worked is on 
a basis of 36 hours or 42. hours as provided in subsection A (2), but 
in no case less than $14.00 per week. Part time clerical or office 
employees shall be paid not less than the hourly rate in subsection 
C for the port specified, but in no case less than 350 per hour for each 
hour worked. 

F. Employees engaged solely to store solid fuel in or about the 
premises of the consumer may be paid on a tonnage basis in those 
trade areas where an established schedule of tonnage rates for such 
work has been in effect since 1929, and shall be paid not less than the 
1929 tonnage rates, which shall be subject to the approval of the 
Divisional Code Authority and the Administrator, and it shall be 
the duty of the Divisional Code Authority to fix and report such 
1929 tonnage rates within 30 days after the effective elate of this 
Code. 

G. Superannuated employees or those who are physically incapable 
of performing manual labor, and office workers with less than six 
months' previous office experience shall be paid not less than 75% 
of the minimum wages prescribed in subsection C, provided that the 
number of such employees at any one time shall not exceed 10% of 
the total number of dock, office", and service employees, provided, 
however, that any dock with less than ten such employees may employ 
one such sub-minimum employee. 

H. The weekly wages of any salesman, regardless of whether he 
be compensated upon a commission or salary basis or both, shall not, 
unless specifically approved in writing by the Divisional Code 
Authority, be less than 40 times the hourly rate provided in sub- 
section C of this section for the port specified. 

I. The use of contractors, sub-contractors, haulers, truckers, or 
others, to perform any of the functions of this industry is prohibited 
unless the employees of such contractors, sub-contractors, haulers, 
truckers or other employers shall receive wages as high and shall be 
required to work hours not in excess of those provided for in this 
Section for employees in the same classification of this industry. 

Section 12. Vessel Filling Division. — A. Because the docks pro- 
vide twenty-four (24) hour continuous service by reason of the sea- 
sonal nature of the operations and because of the international com- 
petition, the maximum hours for all employees (except executives, 
officers and employees acting in a supervisory capacity receiving 
$35.00 or more per week) shall be fifty-six hours per week, during the 
season of navigation on the Great Lakes, viz., from April 1 to Decem- 
ber 15, inclusive, and forty (40) hours per week during the period 
from December 16 to March 31, inclusive, except in cases of accidents 
or emergencies, provided, however, that all time worked in excess of 
fifty-six (56) hours per week from April 1 to December 15, inclusive, 
and all time worked in excess of forty (40) hours per week from 
December 16 to March 31, inclusive, shall be compensated for at 
the rate of time and one-half. 

B. The minimum rates of pay for clerical employees shall be not 
less than $15.00 per week. 

C. The minimum hourly rate for employees (including watch- 
men) other than clerical, shall be forty cents (400). 



109 

D. All employers shall maintain the same hourly rate differential 
(expressed in percentage of the hourly rate) between the different 
classes of employees as existed as of June 1, 1933, but this provision 
shall not apply to executives, officers, and employees acting in a 
supervisory capacity receiving $35.00 or more per week. 

E. There shall be established a committee of five (5) members — - 
consisting of two (2) members of the Industry to be selected by the 
Vessel Fueling Divisional Code Authority; two (2) members repre- 
senting labor appointed by the Labor Advisory Board of the Na- 
tional Recovery Administration; and the Administration member 
of the Vessel Fueling Divisional Code Authority — who shall conduct 
an investigation regarding the wage rates and maximum hours pro- 
vided herein, and make its report and recommendation to the Ad- 
ministrator through the Divisional Code Authority within ninety 
(90) days from the effective date of this Code. 

Article IV — Marketing 

Section 1. Each member of the Industry shall so conduct his 
business as to avoid discrimination against any class or group of 
customers by unfair or disproportionate allocation of his total cost 
and no member of the Industry shall sell or handle any coal at a 
price or charge less than his listed price for that grade, quantity 
and size established as provided in the following section. 

Section 2. Each member of the Industry shall, within ten (10) 
days after the effective date of this Code, file with the Divisional 
Code Authority a list showing the prices and terms and conditions 
of sale other than solely at retail for each grade, quantity, and size 
of coal for each class of purchasers which such member of the 
Industry expects to sell, and a list of charges for handling services 
classified as to grade, size, and quantity of coal which such member 
of the Industry expects to handle, and the terms and conditions 
applicable thereto. Such lists of prices and charges shall become 
effective immediately upon receipt by the Member of the Industry 
filing them of notice from the Divisional Code Authority of their 
receipt and filing, which notice shall be mailed by the Divisional 
Code Authority within twenty- four hours after receipt of the pro- 
posed charges and prices. 

Section 3. Listed prices and charges may be revised from time to 
time by the Member of the Industry filing them, by filing revised 
lists of prices and charges with the Divisional Code Authority, 
which shall become effective in the same manner as provided for the 
original filing thereof. 

Section 4. A report of all sales, showing quantity and prices, 
shall be filed by each member of the Industry with the Divisional 
Code Authority immediately. 

Article V — Unfair Trade Practices 

Section 1. — The following practices shall constitute unfair meth- 
ods of competition. Any member of the Industry who shall be found 
to have engaged in such practices, or any of them, shall be deemed 



110 

to have violated the Act and this Code, and shall be subject to the 
penalties imposed by the Act and this Code. 

(1) The handling, or selling, or offering for sale of coal at less 
than the price or charge established under this Code. 

(2) The secret offering or making of any payment or allowance 
of a rebate, refund, commission, credit, unearned discount, or excess 
allowance, whether in the form of money or otherwise, and the offer- 
ing or extending to any customer any special service or privilege not 
extended to all customers of the same class, for the purpose of 
influencing a sale. 

(3) The predating or postdating of any invoices or contracts for 
the purchase or sale of coal except to conform to a bona fide agree- 
ment for the purchase or sale entered into on the predate. 

(4) The intentional misrepresentation of analyses or sizes, or in- 
tentional making, causing or permitting to be made, or publishing 
of any false, untrue, misleading, or deceptive statement, by way of 
advertisement, invoice, or otherwise, concerning the size, quantity, 
character, nature, preparation, or origin of any coal bought or sold. 

(5) The giving or permitting to be given, or directly offering to 
give, anything of value for the purpose of influencing or rewarding 
the action of any employee, agent or representative of another in 
relation to the business of the employer of such employee, the princi- 
pal of such agent or the represented party, without the knowledge of 
such employer, principal or party; provided that this shall not pro- 
hibit free and general distribution of articles commonly used for 
advertising except insofar as such articles are actually used for 
commercial bribery as hereinabove defined. 

(6) The making of, or causing or permitting to be made, any state- 
ment which refers inaccurately in any material particular to any 
competitors or their products, prices, values, credit terms, policies or 
services. 

(7) Inducing or attempting to induce the breach of an existing 
contract between a competitor and his customer or source of supply, 
or interfering with or obstructing the performance of such con- 
tractual duties or services. 

(8) The prepayment of freight charges with the intent or with the 
effect of granting discriminatory credit allowances. 

(9) The sale or offering for sale of coal of a certain kind or size 
at a price appropriate for such coal with the secret understanding 
that coal of other quality, size, or preparation, listed at or generally 
commanding a higher price, will be delivered; or delivery of coal 
inferior to that agreed to be delivered upon a sale. 

(10) The splitting or dividing of commissions, or discounts or the 
use of commissions or sales agency in any manner through sham or 
indirection for making discounts, allowances or rebates or prices 
other than those determined as provided in this Code. 

(11) Delivery by trucks from docks at less than the filed price on 
trucks at the docks plus the filed charges for the delivery as listed 
with the Divisional Code Authority. 

(12) No member of the Industry shall join or participate with 
other members of the Industry who with such member constitute a 
substantial number of members of the Industry or who together 
control a substantial percentage of the business in any specific prod- 



Ill 

uct 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), 
which accomplishes the purpose of a black list. 

Section 2. Members of the Industry shall supply to all customers 
a statement of the unfair trade practices as listed in Section 1 of this 
Article. 

Article VI — Administration 

Section 1. A Divisional Code Authority to supervise the admin- 
istration and enforcement of the Code for each Division is hereby 
created, the members respectively to be selected in the following 
manner : 

A general meeting of the members of the Industry within each 
Division shall be held within five days after the effective date of this 
Code to select the voting members of the Divisional Code Authority 
for each Division, provided that each such Divisional Code Authority 
shall have a Divisional Member designated by the Administrator, 
without vote but with power of veto. At such meetings the members 
of the Industry shall vote both by tonnage (which shall be the total 
tonnage of coal sold by each such member during the calendar year 
1933) and as individual operators, and it shall require a majority 
vote both in tonnage and numbers to elect. In the event a majority 
in both tonnage and numbers is impossible, then by such other equi- 
table method of voting as may be agreed upon by the respective meet- 
ings and approved by the Administrator. 

(a) In the Northwest Division the Divisional Code Authority shall 
consist of six voting members, three of whom shall represent Lake 
Superior docks and three of whom shall represent Lake Michigan 
docks. 

(b) In the New England Division the Divisional Code Authority 
shall consist of nine voting members; provided, however, that ton- 
nage sold to any corporation controlled by, or which controls, or 
which is controlled by the same person as a member of the Industry 
shall not be included in the tonnage to which such member of the 
Industry is entitled to vote. " Control " means ownership of over 
fifty per cent of the voting capital stock. 

(c) In the vessel Fueling Division the Divisional Code Authority 
shall consist of three voting members. 

Section 2. There shall be established within 10 days after the 
effective date of this Code in each Division a Board which shall con- 
sist of three members appointed by the Divisional Code Authority, 
who may or may not be members of the Industry, as the Divisional 
Code Authority may determine, whose duties shall be to review the 
listed prices and charges and to conduct a continuing study of 
the facts underlying such listed prices and charges, and to observe the 
effect of such prices and charges on the Industry and the public. The 
Divisional Code Authority member, without vote, appointed by 
the Administrator shall be free to attend meetings of this Board and 
shall have free access to all its records. In the event that the Board 
shall find that prices and charges filed with the Divisional Code 
Authority in accordance with the provisions of Article IV are unfair 
to the public or destructive to the Industry, or both, the Board shall 
report such findings to the Divisional Code Authority. All com- 



112 

plaints with respect to the listed prices and charges that may come 
to the Divisional Code Authority shall be referred to such Board 
for consideration. 

Section 3. Each trade or industrial association participating in 
the selection or activities of the Divisional Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its Articles of Association, 
Ity-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. 

Section 4. In order that the Divisional 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 may deem proper; and thereafter if he 
shall find that the Divisional Code Authority is not truly representa- 
tive or does not in other respects comply with the provisions of the 
Act, may require an appropriate modification in the method of selec- 
tion of the Divisional Code Authority. 

Section 5. Any action, rule or regulation of any Divisional Code 
Authority shall be promptly reported to the Administrator, and after 
such notice and hearing as he may prescribe shall be subject to re- 
view and disapproval by him. Whenever any action of a Divisional 
Code Authority is vetoed by the Administration member thereof, the 
veto shall be subject to review by the Administrator and may be re- 
versed by him. If the Administrator at any time shall determine 
that any action of a Divisional 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 Divisional 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. 

Section 6. Members of the industry shall be entitled to participate 
in and share the benefits of the activities of the Divisional Code 
Authority and to participate in the selection of the members thereof 
by assenting to and complying with the requirements of this Code 
and sustaining their reasonable share of the expenses of its admin- 
istration. Such reasonable share of the .expenses of administration 
shall be determined by the Divisional Code Authority, subject to 
review hy the Administrator, on the basis of volume of business and 
such other factors as may be deemed equitable. 

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



113 

Section 8. Each Divisional Code Authority shall have the fol- 
lowing further powers and duties, subject to such rules and regula- 
tions as may be issued by the Administrator : 

(a) To insure the execution of the provisions of this Code and 
provide for the compliance of the Industry with the provisions of 
the Act. 

(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 in its Division such 
information and reports as are required for the administration of 
its Code and to provide for submission by members of such informa- 
tion 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 or 
government agencies as the Administrator may designate; provided 
that nothing in this Code shall relieve any member of the Industry 
of any existing obligations to furnish reports to any government 
agency. No individual reports shall be disclosed to any party ex- 
cept to such governmental agencies as may be directed by the Ad- 
ministrator. 

(d) 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. 

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

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

(g) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the Industry in their relations 
with each other or with other industries and to recommend to the 
Administrator measures for industrial planning, including stabiliza- 
tion of employment. 

Section 9. Each Divisional Code Authority may establish for its 
Division standard size of screens and of grades and of terminology 
or any of them. 

Section 10. Each Divisional Code Authority shall appoint a com- 
mittee to meet with a committee of the Code Authority of any related 
industry and when so meeting to act as a Coordination Board in the 
determination of disputes over the jurisdiction of this Code. Such 
committee of the Divisional Code Authority shall be equal in number 
to the respective committee of the related industry appointed to the 
same Coordination Board. In addition to the members appointed by 
the respective Divisional Code Authorities, each Coordination Board 
shall have one member appointed by the Administrator with author- 
ity to vote in the event of a tie. 

Section 11. Any business included in the definition of wholesaling 
in Article I, Section 2, of this Code, which has been by custom served 
by the Retail Solid Fuel Industry in any trade area, shall be included 
within the definition of " retailing " ; and any business included in 
the definition of " retailing " in Article I, Section 3, of this Code, 



114 

which has been by custom served by the Coal Dock Industry in any 
trade area, shall be included within the definition of wholesaling as 
it applies to the Coal Dock Industry. Any dispute arising out of 
these provisions and involving any related industry or industries for 
which a Code of Fair Competition shall exist, shall be forthwith re- 
viewed and determined by the procedure established in the last pre- 
ceding section, provided that no such determination shall prevent any 
Coal Dock operator doing retail business, or the converse. 

Section 12. In case there should be a dispute between a Divisonal 
Code Authority of this Industry and the Code Authority of any re- 
lated Industry, the determination of which is not provided for by 
Sections 10 and 11 of this Article, the Divisional Code Authority 
may have the power to present it for adjustment to the proper Code 
Authority of such related Industry, and if the two Code Authorities 
are unable to come to an agreement, the Divisional Code Authority 
of this Industry may present it to the Administrator for his decision. 

Section 13. No provision of this Code shall be so interpreted or 
so applied as to promote or permit monopolies or monopolistic prac- 
tices, or to eliminate or oppress small enterprises or discriminate 
against them. 

Article VII — Amendments 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President or Administrator, in ac- 
cordance 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 Title I of said Act and spe- 
cifically, but without limitation to the right of the President or 
Administrator to cancel or modify his approval of this Code, or any 
conditions imposed by him upon his approval thereof. 

Section 2. Such of the provisions of this Code as are not required 
to be included therein by the Act may, with the approval of the 
Administrator after such notice and hearing as he shall prescribe, 
be modified or eliminated in such manner as may be indicated by the 
needs of the public, by changes in circumstances, or by experience; 
all the provisions of this Code, unless so modified or eliminated, shall 
remain in effect for such time as provided in Article IX hereof. 

Article VIII — State Laws 

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

Article IX 

This Code shall become effective ten days after its approval by the 
President and shall continue in effect until June 16, 1935, or until 
such prior date upon which the President by proclamation or the 
Congress by joint resolutions shall declare that the emergency recog- 
nized by Title I of the Act is ended. 

Approved Code No. 337. 
Registry No. 701-35. 

o 



Approved Code No. 338 
CODE OF FAIR COMPETITION 

FOR THE 

WOODEN INSULATOR PIN AND BRACKET 
MANUFACTURING INDUSTRY 

As Approved on March 16, 1934 



ORDER 



Approving Code of Fair Competition for the Wooden Insulator 
Pin and Bracket Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I or the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code 
of Fair Competition for the Wooden Insulator Pin and Bracket 
Manufacturing Industry, and hearings having been duly held there- 
on and the annexed report on said Code, containing findings with 
respect thereto, having been made and directed to the President: 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval recommended: 
A. R. Glancy. 

Washington, D.C., 

March 16, 1934. 

46827° 425-89—84 (115) 



REPORT TO THE PRESIDENT 

The President, 

The White Bouse. 
Sir: This is a report on the Code of Fair Competition for the 
Wooden Insulator Pin and Bracket Manufacturing Industry the 
hearing being conducted in Washington, D.C., on January 30, 1934, 
in accordance with the provisions of the National Industrial Recov- 
ery Act. 

PROVISIONS ON HOURS AND WAGES 

The maximum hours provided in this Code for employees are 
forty (40) hours per week and eight (8) hours per day. The work 
week is limited to five and one-half (5%) days. Inasmuch as the 
product of this Industry is standardized, it can be manufactured for 
stock and therefore no tolerance above the normal week is allowed 
for peak periods. 

Employees engaged in emergency maintenance and emergency re- 
pair work are excepted from hourly limitation under prescribed 
conditions and are to receive one and one-third overtime rate of pay. 
Shipping clerks, firemen, and engineers whose normal duties in the 
factory require a longer period each day than required of other 
operatives are granted a tolerance of one hour per day and five hours 
per week. Watchmen may work eighty-four hours in a two weeks' 
period but not more than forty-eight hours in any one week. Ex- 
emption from hourly limitations is granted to managerial and 
executive employees regularly receiving $35.00 or more per week. 

The minimum wage provided in this Code for factory employees 
is forty cents per hour with no exceptions other than for employees 
of limited capacity, who may be paid less than the minimum rate 
under prescribed conditions. It is provided that clerical employees 
shall not receive less than fifteen (15) dollars per week. Under 
this Code no present wage rates shall be reduced and equitable 
adjustment of wages in excess of the minimum shall be made. 

CHILD LABOR 

The minimum age provided in this Code is 16 years but in hazard- 
ous occupations this age limit is increased to 18 years. 

ECONOMIC EFFECT OF THE CODE 

The sales of this Industry have decreased nearly ninety per cent 
since 1929 but there are signs of recovery. Sales were twice as large 
during the second half of 1933 as they were during the first half. 
The product of this Industry is used entirely for electrical utility 
construction and will be responsive to any expansion in that field. 
Only one-fourth of the estimated 250 employees engaged in this 

(116) 



117 

Industry in 1929 are at present employed. The maximum hours 
provided in this Code will increase employment approximately eleven 
(11) per cent if the same man hours are maintained. The number 
of employees was increased about fifty (50) per cent when some of 
the members of the Industry signed the President's Reemployment 
Agreement. Should the demand for this product again equal that 
of 1929, employment in the Industry will be increased by nearly 
forty-five (45) per cent over that of 1929 as the average work week 
in that year was fifty-eight (58) hours as compared with the maxi- 
mum of forty (40) hours prescribed by the Code. 

The minimum wage of forty (40) cents per hour established by 
this Code is considerably higher than has been paid by this Industry 
in the past. Approximately ninety (90) per cent of the employees 
must have their wage rates increased in order to receive the minimum 
provided in the Code. This will mean an increase of nearly forty 
(40) per cent over the real wages of October, 1933, and ninety (90) 
per cent over those of June, 1933, for the employees now engaged in 
this Industry. This increase seems relatively large because a num- 
ber of the employees have been receiving as low as twelve and one- 
half (12y 2 ) cents per hour. Many of the employees affected perform 
a skilled operation even though receiving this very low wage rate. 
Some of the members of this Industry who have been paying the 
lower wages and who have not cooperated by signing the President's 
Reemployment Agreement have protested the proposed wage as too 
high. The assenting group judged to be truly representative by the 
Legal Division has signified that the prescribed wage is satisfactory 
and desirable in order to accomplish the increased purchasing power 
purposed by the Act. The necessary increase in the sale price of 
this product incident to this increased wage rate will be easily ab- 
sorbed inasmuch as the labor cost in the production of wooden insu- 
lator pins and brackets represents an infinitesimal portion of the cost 
of the construction work in which this product is used and there is, 
in the opinion of the Industry, no practicable substitute. 

FINDINGS 

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

I find that : 

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



118 

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. 

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 

March 16, 1934. 



CODE OF FAIK COMPETITION FOR THE WOODEN 
INSULATOR PIN AND BRACKET MANUFACTURING 
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 
Competition for the Wooden Insulator Pin and Bracket Manufactur- 
ing Industry and shall be binding upon every member thereof. 

Article II — Definitions 

1. The term " Industry " as used herein includes the manufacture 
and/or sale by manufacturers of wooden insulator pins and brackets 
used on overhead transmission lines and such related branches or 
subdivisions as may from time to time be included under the pro- 
visions of this Code, after such notice and hearing as may be 
prescribed. 

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

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

4. The term "Association " as used herein means the National 
Wood Insulator Pin and Bracket Manufacturers Association. 

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

Article III — Hours 

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

(a) Shipping clerks, firemen, and engineers, who shall not be 
permitted to work in excess of nine (9) hours in any twenty-four 
(24) hour period or forty-five (45) hours in any one week. 

(b) Watchmen, who shall not be permitted to work in excess of 
eighty-four (84) hours in any two week period or forty -eight (48) 
hours in any one week. 

(c) Employees in a managerial or executive capacity who regu- 
larly receive more than $35.00 per week. 

2. No employee shall be permitted to work in excess of five and 
one half (5%) days in any one week. 

(119) 



120 

3. No office, accounting, or clerical employee shall be permitted to 
work in excess of forty (40) hours in any one week or eight (8) 
hours in any twenty- four (24) hour period. 

4. The maximum hours fixed in the foregoing section shall not 
apply to any employee on emergency maintenance or emergency re- 
pair work involving protection of life or property who shall be paid 
at least one and one third (1%) times his normal rate for all hours 
worked in excess of eight (8) hours in any one day or forty (40) 
hours in any one week. 

5. No employer shall knowingly engage any employee for any 
time which when totaled with that already performed with another 
employer or employers exceeds the maximum hereinabove provided. 

6. Members of the Industry who personally engage in productive 
operations in their plants shall not work at such operations in excess 
of the maximum number of hours prescribed for employees in this 
Article. 

Article IV — Wages 

1. No employee shall be paid at less than the rate of forty (40) 
cents per hour except as hereinafter otherwise provided. 

2. An employer shall make payment of all wages due in lawful 
currency or by negotiable check therefor payable on demand. All 
wage agreements shall provide for the payment of wages at the end 
of each work week. All wages shall be exempt from any payments 
for pensions, insurance, and other charges and/or deductions by the 
employer not required by law, which are not requested by the em- 
ployee. No employer shall directly or indirectly accept or permit to 
be accepted any rebates on 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 employees. 

3. Accounting, clerical, or office employees shall not be paid less 
than the rate of $15.00 per week. 

4. This Article establishes minimum rates of pay, regardless of 
whether an emplo} T ee is compensated on a time-rate, piecework, or 
other basis. 

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

6. Employers shall not reduce the rates of wages for employees 
whose rates are now in excess of the minimum rate of wages herein 
provided (notwithstanding that the number of hours worked in such 
employment may be hereby decreased) and where in any such case 
an employer has not increased the rates of wages for such emplo}<ees 
prior to the effective date of this Code by an equitable readjustment 
of all wage rates such employer shall readjust all such wage rates. 
This provision shall be interpreted in the same manner that Para- 
graph 7 of the President's Reemployment Agreement has been inter- 
preted by the Administrator in Interpretations Nos. 1 and 20. All 
adjustments shall be reported to the Code Authority and the Admin- 
istrator within thirty (30) days after the effective date of the Code. 

7. A person whose earning capacity is limited because of age, 
physical or mental handicap, or other infirmity, may be employed 
on light work at a wage below the minimum established by this Code, 
if the employer obtains from the state authority, designated by the 



121 

United States Department of Labor, a certificate authorizing such 
person's employment at such wages and for such hours as shall be 
stated in the certificate. Such authority shall be guided by the in- 
structions 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, show- 
ing the wages paid to, and the maximum hours of work for, such 
employee. 

8. Employees other than maintenance or supervisory men, or 
others necessary to protect the property, shall not be required, as a 
condition of employment, to live in quarters rented from the 
employer. 

9. No employee shall be required, as a condition of employment, 
to trade at the store of the employer. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the Industry, nor anyone under eighteen (18) years of age at 
operations or occupations hazardous in nature or detrimental to 
health. Within sixty (60) days of the effective date of this Code 
the Code Authority shall submit to the Administrator a list of 
such occupations. In any State an employer shall be deemed to 
have complied with this provision if he shall have on file a certificate 
or permit duly issued by the authority in such State empowered to 
issue employment or age certificates or permits, showing that the 
employee is of the required age. 

2. In compliance with Section T (a) of the Act it is hereby 
provided that: 

(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 any other concerted activities for the 
purpose of collective bargaining or other mutual aid or protection. 

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

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

3. No provision of this Code shall supersede any State or Federal 
laws imposing more stringent requirements on employers regulating 
the age of employees, wages, hours of work, or health, fire, or 
general working conditions than under this Code. 

4. No member of the Industry shall reclassify employees or 
duties of occupations performed by employees or engage in any other 
subterfuge so as to defeat the purposes of the Act or of this Code. 

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

6. Each member of the Industry shall post and thereafter maintain 



122 

full copies of this Code in conspicuous places accessible to his 
employees. 

7. Each employer shall make reasonable provision for the health 
and safety 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 
months after the effective date of this Code. 

Article VI — Administration 

To effectuate further the policies of the Act a Code Authority is 
hereby constituted to cooperate with the Administration in the 
administration of this Code. 

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of four (4) individuals or 
such other number as may be approved from time to time by the 
Administrator, to be selected as hereinafter set forth. The Admin- 
istrator, in his discretion, may appoint from one to three additional 
members without vote to represent the administration or such groups 
or interests as he may designate. Members appointed by the Admin- 
istrator, if more than one is appointed, shall serve for terms of from 
six months to one year provided, however, that the terms of such 
member or members shall not expire at the same time. Such mem- 
bers shall be given notice of and may attend all meetings of the 
Code Authority. 

(b) Within ten days after the approval of this Code by the Ad- 
ministrator, the members of the Association shall select three of their 
own number to serve as members of the Code Authority. Each 
member of the Association shall be entitled to one vote in person, 
by letter, or by proxy. The secretary of the Association, not later 
than ten days after the approval of this Code, shall notify the mem- 
bers of the Industry who are nonmembers of the Association, if any 
such there be, that on a specific date not later than twenty days after 
such notice shall have been given the members of the Industry who 
are nonmembers of the Association will select one of their number 
to serve as a member of the Code Authority. Notice of such election 
shall specify that such nonmember may be elected by the nonmem- 
bers of the Association either present, or by proxy, or by letter 
ballot. Should such method fail to elect a representative of the 
nonmembers of the Association to the Code Authority, the thre9 
members of the Association of the Code Authority already elected 
shall appoint a nonmember to the Code Authority subject to the 
Approval of the Administrator. Should a vacancy occur in the 
Code Authority the remaining members shall elect a member of the 
Industry from the same group as was represented by the one whose 
vacancy is thus filled. 

(c) The Association or any other trade or industrial association 
directly or indirectly participating in the selection or activities of 
the Code Authority shall: (1) Impose no inequitable restrictions on 
membership, and (2) submit to the Administrator true copies of its 
articles of association, by-laws, regulations, and any amendments 
when made thereto, together with such other information as to 



123 

membership, organization, and activities as the Administrator may- 
deem necessary to effect the purposes of the Act. 

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

(e) All 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. Members who 
so participate in or share the benefits of the activities of the Code 
Authority shall sustain their reasonable share of such expenses. 
Assessments for the expenses of the Code Authority shall be deter- 
mined subject on review to disapproval by the Administrator on the 
basis of volume of sales 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, subject to the right of the 
Administrator on review to disapprove any action taken by the 
Code Authority. 

(a) To employ a competent Secretary or other agent who shall 
not oe employed by or directly or indirectly affiliated with any 
member of the Industry to whom each member of the Industry shall 
furnish certified reports in the form required by the Code Authority 
on wages, hours, conditions of employment, and such other matters 
as may be pertinent to the Administration of this Code. 

(b) With the view to informing the President and the Administra- 
tion as to the observance of this Code, and as to whether the Industry 
is taking appropriate steps to effect the declared policy of the Act, 
the Code Authority shall make such reports to the Administrator as 
he may direct. No individual reports shall be disclosed to any other 
member of the Industry or any other party, except to such govern- 
mental agencies as may be designated by the Administrator and to 
such impartial agencies as may be required to facilitate the admin- 
istration of this Code. 

(c) The Code Authority may from time to time present to the 
Administrator recommendations for modifications of or additions to 
this Code based on conditions in the Industry as they may develop, 
which will tend to effect the operation of the provisions of this Code. 
Such recommendations upon approval by the Administrator after 
such notice and hearing as he may prescribe shall constitute a part 
of and have the same force and effect as the provisions of this Code. 

(d) The Code Authority is also set up to cooperate with the 
Administrator in making investigations as to the functioning and 
observance of any provisions of this Code, at its own instance or on 
request of the Administrator, or on complaint of any person affected, 
and to report the same to the Administrator. 

(e) The Code Authority shall make studies and investigations 
looking toward the establishment of classifications, dimensional 



124 

standards, and quality specifications for products of the Industry, 
in cooperation with some Federal Government Agency, preferably 
the Bureau of Standards of the U.S. Department of Commerce. 
Upon approval by the Administrator, after such notice and hearing 
as he may prescribe, such recommendations shall become effective 
as integral parts of this Code. 

(f) The Code Authority shall coordinate the Administration of 
this Code with such codes, if any, as may affect this Industry or any 
related industry, with a view to promoting joint and harmonious 
action upon matters of common interest. 

(g) The Code Authority shall cooperate with the Administrator 
in regulating the use of the N.R.A. Insignia solely by those members 
of the Industry who have assented to and are complying with this 
Code. 

(h) To recommend to the Administrator further fair trade prac- 
tice provisions to govern the members of the Industry in their re- 
lations with each other or with other Industries, and to recommend 
to the Administrator measures for industrial planning, including a 
plan for regularization and stabilization of employment. 

3. In addition to information required to be submitted as here- 
inbefore set forth, members of the Industry shall furnish such sta- 
tistical 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 Administration may designate. No pro- 
vision of this Code shall relieve any person of any existing obliga- 
tion to furnish reports to Government agencies. 

4. If the Administrator shall determine that any action of a Code 
Authority or any agency thereof may be unfair, or unjust, or con- 
trary to the public interest, the Administrator may require that 
such action be suspended to afford an opportunity for investigation 
of the merits of such action and further consideration by such Code 
Authority or agency pending final action which shall not be effec- 
tive 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. 

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

Article VII — Trade Practices 

1. The Code Authority shall formulate or cause to be formulated 
uniform principles of cost accounting or methods of cost finding 
which shall be adaptable to the business of the industry, which shall 
include in allowable cost the cost of raw materials at market or 
inventory value, whichever shall be the lower; the cost of direct 
labor, and a reasonable charge for plant burden and administrative 
and distribution expenses. Upon approval by the Administrator 



125 

of such a system of cost accounting or method of cost finding for the 
Industry complete advice concerning it shall be distributed by the 
Code Authority to all members of the Industry. Thereafter no 
member of the Industry shall sell the products of the Industry at 
such prices or upon such terms and conditions of sale as will result 
in the purchaser's paying for such product less than the allowable 
cost thereof to the seller, determined in accordance with the afore- 
said method of cost accounting, except to meet the competition of 
another member of the Industry. 

2. The Code Authority shall make a study within ninety (90) 
days after the effective date of this Code of the advisibility of selling 
the product of this Industry on an open price basis. If such basis 
seems desirable it shall formulate an open price plan which shall be 
submitted to members of the Industry. If a majority of the mem- 
bers of the Industry by number and by dollar volume of sales 
approves said plan, it shall be submitted to the Administrator and 
upon approval by him, shall constitute a part of and have the same 
force and effect as, provisions of this Code. 

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

(a) The giving, permitting to be given, or directly offering to 
give, anything of value for the purpose of influencing or rewarding 
the action of any employee, agent, or representative of another in 
relation to the business of the employer of such employee, the prin- 
cipal of such agent or the represented party without the knowledge 
of such employer, principal, or party. This provision shall not be 
construed to prohibit free and general distribution of articles com- 
monly used for advertising, except so far as such articles are actually 
used for commercial briber} 7 as herein defined. 

(b) The secret payment or allowance of rebates, refunds, com- 
missions, or unearned discounts, whether in the form of money or 
otherwise, or secretly extending to certain purchasers special services 
or privileges not extended to all purchasers under like terms and 
conditions. 

Article VIII — Export Trade 

Provisions of this Code other than the labor provisions thereof 
shall not apply to or affect the sale by any member of any product 
of the industry for direct shipment in export trade nor to the terri- 
tories and possessions of the United States, nor to sales made to ex- 
porters in the United States specifically packed, marked and desig- 
nated for export. 

Article IX — Modifications 

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, li- 
cense, rule, or regulation issued under Title I 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. 



126 

Article X — Monopolies 

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

Article XI — Effective Date 

This Code shall become effective ten days after its approval by the 
President. 

Approved Code No. 338. 
Registry No. 330-1-01. 

o 



Approved Code No. 339 
CODE OF FAIR COMPETITION 

FOR THE 

PRINTING INK MANUFACTURING INDUSTRY 

As Approved on March 16, 1934 



ORDER 



Approving Code of Fair Competition for the Printing Ink 
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 Printing Ink Manufacturing Industry, and 
hearings having been duly held thereon and the annexed report on 
said Code, containing findings with respect thereto, having been 
made and directed to the President : 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Administrator, 

Washington, D.C., 

March 16, 1931 

46828° 425-90 34 (127) 



REPORT TO THE PRESIDENT 

The President, 

The White Home. 
Sir : This is a report of the hearing on the Code of Fair Competi- 
tion for the Printing Ink Manufacturing Industry, conducted in 
Washington on January 15, 1934, in accordance with the provisions 
of Title I of the National Industrial Recovery Act. 

LABOR PROVISIONS 

The Code provides that no employee shall be permitted to work in 
excess of forty hours per week over any thirteen weeks' period nor 
more than forty-eight hours in any one week and further that any 
factory employee who works in excess of forty hours per week or 
ten hours per day shall be paid time and one-third for such overtime. 

From the above provisions there are excepted employees engaged 
in a managerial, supervisory, executive, or technical service capacity, 
color matchers, accounting staff and those engaged on maintenance 
repair work who are paid not less than thirty-five dollars per week. 
Also excepted are employees in automotive or horse-drawn delivery 
service who are not permitted to work in excess of an average of 
forty-eight hours per week in any four weeks' period, providing over- 
time at the rate of time and one-third is paid for hours in excess of 
forty-eight hours per week or ten hours per day ; and watchmen who 
may be employed not more than fifty-six hours per week and shall 
have one full day off in each two weeks. 

The Code provides minimum wages of forty cents per hour, except 
for clerical employees, not including outside salesmen, who shall be 
paid not less than fifteen dollars per week. From the above mini- 
mum wage provisions there are excepted errand boys, office boys and 
office girls and janitors in the Southern part of the United States 
who shall be paid not less than twelve dollars per week. 

Applying to wages above the minimum, the code provides as 
follows in Section 4 of Article IV : 

" No member of the Industry shall reduce the compensation for 
employment which on July 1, 1933 was in excess of the minimum 
wages provided herein, notwithstanding that the hours worked in 
such employment may be reduced by the provision of Article III 
hereof, and the members of the Industry shall increase the pay for 
such employment by an equitable readjustment of all pay schedules. 
The term " compensation for employment " as used herein refers 
to compensation per week where weekly rates were in effect on 
July 1, 1933, and average normal aggregate compensation per week 
where hourly rates were in effect on July 1, 1933." 

INDUSTRIAL LABOR BOARD 



Provision is made for the establishment of an Industrial Labor 

matt 

(128) 



Board, to receive and handle all matters relating to wage rates, hours 



129 

of employment and such other matters as have to do with the rela- 
tionship as between employers and employees of this Industry. 

OTHER PROVISIONS 

No specific trade practice provisions have been included in the 
Code at this time. It is provided, however, that as soon as prac- 
tical after the approval of the Code and in no event later than ninety 
days after the organization meeting, the Administrative Committee 
shall recommend to the Administrator for approval, after consid- 
eration by the Industry, a plan or plans for national credit control 
for the Industry and fair trade practice provisions to govern the 
members of the Industry for the purpose of eliminating price cut- 
ting practices and measures for industrial planning. 

ECONOMIC EFFECT OF THE CODE 

In this Industry there are 163 companies which have a total in- 
vested capital of approximately $30,000,000. Twenty companies do 
85% of the total volume of business which was approximately 
$28,000,000 in 1932 as compared with $40,000,000 in 1929. 

Eighty-four companies are members of the Association which 
presented the Code for public hearing and 138 companies assented 
to the Code as submitted. 

The large proportion of widely distributed small establishments 
and the existence of productive capacity which is about double the 
annual sales, indicates the general and active competition for avail- 
able business. As indicated in the report of the Division of Eco- 
nomic Research and Planning, the business is highly organized on a 
service basis, both as regards the necessity of giving immediate at- 
tention to rush orders and technical assistance in solving printing 
production problems. Competition on the basis of service, it is fur- 
ther stated, may seem to have been carried to an unnecessarily high 
degree, but in this connection the Printing Ink Industry faces po- 
tential and actual competition from the private ink plants of large 
consumers. 

The Census of Manufacturers indicates that in 1929, out of a total 
of 3597 persons employed in the Industry, 2448 were wage earners. 
The number of wage earners decreased in 1931 to 2247. 

Questionnaire returns from 74 identical establishments showed a 
decrease of 19% in the number of factory wage earners from 1929 
through the first half of 1933. It is estimated that compliance with 
the President's Reemployment Agreement caused an increase of 
about 10% in emplo}<ment during the late months of 1933. This 
report states that the code provisions for an average working week 
of forty hours should, on the basis of hours worked prior to the 
President's Reemployment Agreement, increase factory employment 
about one-sixth above that in mid-1933 or to practically the 1929 
figures. 

The proportion of unskilled labor is small in this Industry. The 
Code provision of forty cents per hour affects about 15% of the 
wage earners. In accordance with the provision in Article IV, Sec- 
tion 4, employees receiving wages above the minimum will receive no 



130 

cut in earnings although the working hours may be decreased. Inas- 
much as weekly earnings were generally not decreased more than 
15% between 1929 and July 1933, and since earnings above the mini- 
mum may not be decreased, both average weekly earnings and pay- 
rolls should be increased through the operation of the code 
provisions. It is estimated in the report of the Division of Eco- 
nomic Research and Planning that the increase in payrolls will be 
about 15%. 

findings 
I find that : 

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

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

(c) The code as approved complies in all respects with the perti- 
nent provisions of said Title I of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant associ- 
ation is 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. 
March 16, 1934. 



CODE OF FAIR COMPETITION FOR THE PRINTING INK 
MANUFACTURING INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Recovery 
Act, this Code is established as a Code of Fair Competition for the 
Printing Ink Manufacturing Industry, and upon approval by the 
President its provisions shall be the standards of fair competition for 
such industry and shall be binding upon every member thereof. 

Article II — Definitions 

Section 1. The term " the industry " as used herein includes the 
business of manufacturing and/or processing, for sale, any and all 
kinds of printing inks and such similar products for use in printing 
as defined in Section 2 hereof. 

Section 2. The term " printing ink " means and includes any com- 
bination of dyes and/or pigments with a vehicle or vehicles and/or 
with or without any other ingredient or ingredients, manufactured 
and/or processed, for sale, for the purpose of typographic printing, 
intaglio printing, or lithographic printing, and any other products, 
such as compounds, vehicles, etc., manufactured and/or processed, 
for a like purpose. 

Section 3. The term " the National Association " means the Na- 
tional Association of Printing Ink Makers, Incorporated, a corpora- 
tion incorporated under the laws of the State of New York. 

Section 4. The term "Administrative Committee " means the body 
constituted to administer the provisions of the Code pursuant to 
Article VI of the Code. 

Section 5. The term " member of the Industry " includes, but 
without limitation, any individual, partnership, association, corpo- 
ration or other form of enterprise engaged in the Industry, either as 
an employer or on his or its own behalf. 

Section 6. The term " employee " as used herein includes any and 
all persons engaged in the Industry ? however compensated. 

Section. 7. The terms " the President ", "Act ", and "Adminis- 
trator " as used herein mean respectively the President of the United 
States, Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery. 

Section. 8. The term " the United States " means and includes 
all of the territory of the United States of America to which the 
National Industrial Recovery Act is applicable. The term " the 
Southern part of the United States " means and includes the States 
of Virginia, Tennessee, Arkansas, Oklahoma, New Mexico, and 
Arizona, and all States which in their entirety lie south of said 
States, and the territories and possessions of the United States ; and 

(131) 



132 

the term " the Northern part of the United States " means and in- 
cludes all of the remaining territory of continental United States. 

Article III — Hours 

MAXIMUM HOURS 

Section 1. Except as herein otherwise provided, no employee 
shall be permitted to work in excess of 40 hours per week averaged 
over any 13 weeks' period nor more than 48 hours in any one week 
beginning with the effective date of the Code. Any factory employee 
who works in excess of 40 hours per week or 10 hours per day shall 
be paid at the rate of time and one-third for such overtime. A 
normal work day shall be 8 hours but overtime rate shall be paid 
after 10 hours of employment in any one day. 

Section 2. Exemption as to Hours. From the provisions of Sec- 
tion 1 the following classes shall be exempted : 

(a) Employees engaged in a managerial, supervisory, executive or 
technical service capacity, chemists or color matchers and account- 
ing staff, provided the compensation of said employees is not less 
than $35 per week and outside salesmen. 

(b) Employees engaged on maintenance and repair work who are 
emplo} T ed on a weekly basis and who receive not less than $35 per 
week. 

(c) Employees on automotive or horse-drawn, passenger, express, 
delivery or freight service shall not be permitted to work in excess 
of an average of forty-eight (48) hours in any four (4) week's pe- 
riod, provided, that overtime shall be paid at the rate of time and 
one-third for all hours above forty-eight (48) per week or ten (10) 
per day. 

(d) Watchmen who may be employed not more than 56 hours 
per week and they shall have one full day off in each two weeks. 

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 
employers in this Industry, exceeds the maximum permitted herein. 

Article IV — Wages 

Section 1. Minimum Wages. — No employee shall be paid in any 
pay period less than at the rate of forty cents per hour, except as 
hereinafter provided : 

(a) Clerical employees, not including outside salesmen, shall be 
paid not less than $15 per week; 

(b) Errand boys, office boys and office girls, and janitors in the 
Southern part of the United States, shall not be paid less than $12 
per week. 

Section 2. Handicapped Persons. — A person whose earning capac- 
ity is limited because of age or physical or mental handicap may be 
employed on light work at a wage below the minimum established 
by this Code if the employer obtains from the State authority desig- 
nated by the United States Department of Labor a certificate au- 
thorizing his employment at such wages and for such hours as shall 



133 

be stated in the certificate. Each employer shall file with the Admin- 
istrative Committee a list of all such persons employed by him. 

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

Section 4. Wages Above the Minimum. — No member of the In- 
dustry shall reduce the compensation for employment which on 
July 1, 1933, was in excess of the minimum wages provided herein, 
notwithstanding that the hours worked in such employment may 
be reduced by the provision of Article III hereof, and the members 
of the Industry shall increase the pay for such employment by an 
equitable readjustment of all pay schedules. The term "compensa- 
tion for employment" as used herein refers to compensation per 
week where weekly rates were in effect on July 1, 1933, and average 
normal aggregate compensation per week where hourly rates wero 
in effect on July 1, 1933. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industry. No person under eighteen (18) years of 
age shall be employed at operations or occupations which are haz- 
ardous in nature or dangerous to health. The Administrative Com- 
mittee shall submit to the Administrator within two months after 
the effective date of the Code a list of such operations or occupa- 
tions. 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. In compliance with Section 7 (a) of the Act, it is 
provided : 

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

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

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

Section 3. 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 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. 



134 

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

Article VI — Industrial Labor Board 

There shall be established within 30 days following approval of 
this Code, an Industrial Labor Board, to be known as the Industrial 
Labor Board for the Printing Ink Manufacturing Industry. This 
Board shall be made up of 3 members of the Industry to be selected 
by the Administrative Committee of the Industry, and 3 members 
representing Labor and selected by the Labor Advisory Board of 
the National Recovery Administration, to be approved by the Ad- 
ministrator, and one disinterested person to be selected by these six 
members, and approved by the Administrator who shall act as 
Chairman of said Board. To this Board shall be submitted all 
matters with relation to wage rates, hours of employment and such 
other matters as have to do with the relationship as between em- 
ployers and employees of this Industry. 

Article VII — Administration and Powers of the Administrative 

Committee 

Section 1. The administration of the Code shall be under the 
direction of the Administrative Committee. Said Administrative 
Committee shall be composed as follows : 

(a) The President of the National Association. 

(b) Each member of the Industry whose dollar sales aggregate 
three million dollars or over for the calendar year next preceding 
the date of election shall be entitled to appoint one member on the 
Administrative Committee. 

(c) From among and by those members of the Industry whose 
dollar sales aggregate one-half million dollars or more and less than 
three million dollars for the calendar year next preceding the date 
of election, two members of the Administrative Committee shall be 
elected as hereinafter provided. 

(d) From among and by those members of the Industry, not 
included in subdivisions (b) and (c) set forth above, whose prin- 
cipal places of business are located in the regions hereinbelow de- 
scribed, there shall be elected as hereinafter provided, one member 
of said Administrative Committee for each of said regions. 

(e) In addition to membership as above provided, there may be 
one member, without vote and without expense to the Industry, 
to be appointed by the Administrator. 

Each member of the Administrative Committee shall represent 
on the Administrative Committee the interest or group or region 
bv which he was elected or appointed. 

For the purposes hereof, the regions referred to in subdivision (d) 
above are as follows : 



135 

(1) Chicago Region. — Includes all of the States of Wisconsin, 
Minnesota, North Dakota, South Dakota, Nebraska, Iowa, and Wyo- 
ming; that portion of the State of Montana which lies east of the 
Rocky Mountains and that part of the State of Illinois which is 
north of the Cities of Springfield and Decatur, including such cities ; 

(2) Cincinnati Region. — Includes that part of the State of Ohio 
south of and including the City of Newark; that part of the State 
of Indiana south of the City of Terre Haute, but not including said 
city; all of the States of Kentucky, West Virginia, Tennessee, Mis- 
sissippi, Alabama, Georgia, and Florida ; 

(3) Detroit Region. — Includes all of the State of Michigan; that 
part of the State of Indiana north of and including the City of Terre 
Haute ; that part of the State of Ohio north of but not including the 
City of Newark ; that part of the State of Pennsylvania west of and 
including the Cities of Oil City and Duquesne ; that part of the State 
of New York west of the Cities of Olean and Rochester, but not 
including those cities; 

(4) New York Region. — Includes all of the New England States 
and that part of the State of New York east of and including the 
Cities of Olean and Rochester, and that part of the State of New 
Jersey north of and including the City of Trenton ; 

(5) Pacific Coast Region. — Includes all of the States of Washing- 
ton, Oregon, Idaho, California, Nevada, Utah, and Arizona; and 
that portion of the State of Montana which lies to the west of the 
Rocky Mountains; 

(6) Philadelphia Region. — Includes that part of the State of 
Pennsylvania east of the Cities of Oil City and Duquesne, but not 
including those cities ; that part of the State of New Jersey south of 
the City of Trenton, but not including said city; and all of the 
States of Delaware, Maryland, Virginia, North Carolina, and South 
Carolina ; 

(7) St. Louis Region. — Includes that part of the State of Illinois 
south of the Cities of Springfield and Decatur, but not including 
those cities; and all of the States of Colorado, Kansas, Missouri, 
Oklahoma, Arkansas, Texas, Louisiana, and New Mexico. 

Section 2 (a) Upon election, as hereinafter provided, to member- 
ship on the Administrative Committee, each member of the Admin- 
istrative Committee shall within ten (10) days designate and place 
on file with the Secretary of the Administrative Committee the 
name of a particular person from his group or region as alternate, 
who shall act for said member on said Committee in his absence. 

(b) No member of the Industry shall have more than one member 
on said Administrative Committee or more than one vote for each 
member of the Administrative Committee for which such member of 
the industry is entitled to vote. 

(c) The tenure of office of members of the Administrative Com- 
mittee shall be one year from the date of election or until their suc- 
cessors have duly qualified in accordance with the provisions of this 
article; provided, however, that the first elected Administrative 
Committee shall serve until May, 1935. Elections, after the first 
election, shall be held annually on the first Tuesday of May of each 
year commencing in 1935. 



136 

(d) The Administrative Committee shall act only at a meeting 
thereof, and the attendance of eight members in person or by alter- 
nate and not by other proxy shall be required to constitute a quorum. 
Except as may otherwise be provided, no action of the Committee 
shall be effective unless authorized by the vote of at least two-thirds 
of the entire authorized membership of the Committee. At any 
duly constituted meeting any member of the Administrative Com- 
mittee may vote or act by proxy given in writing to another member 
of the Administrative Committee. The vote or act of such proxy 
shall be as effective as the vote or act of the member appointing such 
proxy. Subject to the express provisions of the Code, the Adminis- 
trative Committee shall have the power to adopt its own rules of 
procedure and to prescribe the duties of its officers and others elected 
or appointed by the Committee. 

(e) Any vacancy or vacancies in the membership of the Admin- 
istrative Committee shall be filled in the same manner and by the 
same interest, group, or region as is herein provided for the original 
filling of such membership. 

(f) The Administrative Committee mav from time to time elect 
from its own membership a Chairman and Vice Chairman and may 
appoint one or more individuals, who need not be members of the 
Administrative Committee, to act as Secretary and/or Treasurer 
of the Administrative Committee. All such officers named herein 
or from time to time elected or appointed by the Administrative 
Committee as herein provided shall serve during the pleasure of the 
Administrative Committee. 

(g) The Chairman, Vice Chairman, Treasurer, and the members 
of the Administrative Committee shall serve without compensation, 
but each of such officers and each member of the Administrative 
Committee shall be entitled from time to time to be reimbursed from 
funds collected in accordance with Section 8 of this Article VII for 
all reasonable expenses incurred by him in fulfilling his duties as an 
officer or member of the Administrative Committee. The Admin- 
istrative Committee shall have the power to fix the compensation 
of the Secretary of the Committee. 

Section 3. Nominations, elections, and appointments for members 
of the Administrative Committee described in Section 1 above shall 
be effected, subject to the approval of the Administrator, as follows : 

(a) Appointments shall be made in writing by registered mail ad- 
dressed to the Secretary of the Administrative Committee and 
mailed not later than midnight of the election date. 

(b) Immediately upon the approval of the Code by the President 
the Secretary of the National Association shall notify every member 
of the Industry known to him that the Code is in effect, and shall 
call region and group meetings for the purpose of making nomina : 
tions for membership on the Administrative Committee and desig- 
nate a person in each such group or region to act as Secretary of such 
meeting. Immediately after the holding of said meeting the Sec- 
retary of each meeting shall notify the Secretary of the National 
Association of the person or persons so nominated, and as soon as all 
such nominations have been received by the Secretary of the National 
Association he shall fix a date for the first election of members of 
the Administrative Committee (which shall not be less than 10 nor 



137 

more than 40 days thereafter), and shall notify every member of 
the Industry known to him thereof, and shall also notify every mem- 
ber of the Industry known to him to be entitled to vote thereon, as 
provided in this Article, of such nominations. The first election for 
membership on the Administrative Committee shall then be con- 
ducted in the same manner as is hereinafter provided for subse- 
quent elections. For the purpose of this first election only, each 
member of the Industry shall certify in writing to the Secretary 
of the National Association, on his request, the election group and/or 
region to which such member belongs. 

(c) For the purpose of all subsequent elections, at least twenty days 
prior to the election date the Administrative Committee shall duly 
make nominations of candidates to be elected by the respective groups 
described in subdivisions (c) and (d) of Section 1 hereof, and in 
the latter case by regions, which nominations the Secretary of the 
Administrative Committee shall send to every member of the Indus- 
try entitled to vote thereon. In the event that the Administrative 
Committee fails to make such nominations, the Secretary of the 
Administrative Committee shall notify every member of the Industry 
to that effect at least fifteen days before the election date. Nomina- 
tions shall not be restricted to those made by the Administrative 
Committee, and any member of the Industry entitled to vote may 
nominate and vote for any candidate of his own choosing, within 
his proper group or region, provided said nomination shall be filed 
with the Secretary of the Administrative Committee at least ten clays 
prior to the date of election with the written endorsement of at least 
twenty percent of the members of the Industry, included in the group 
and/or region for which such nomination is made. 

(d) For the purpose of all elections, voting shall be by registered 
mail, addressed to the Secretary of the Administrative Committee 
(or in the case of the first election, to the Secretary of the National 
Association), on a form of ballot prepared by either the Administra- 
tive Committee or the voter. All ballots to be counted must be mailed 
not later than midnight of the election date to the office of the Secre- 
tary. Every candidate receiving a plurality of all votes recorded 
from his group and/or region shall be deemed to have been elected. 
Within ten days after the election date the Secretary of the Adminis- 
trative Committee (or in the case of the first election the Secretary 
of the National Association) shall, by mail, inform every member of 
the Industry of the names of the persons appointed and elected to 
membership on the Administrative Committee, and the Administra- 
tive Committee shall meet for organization purposes upon the call 
of said Secretary within two weeks thereafter. 

Section 4. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Administra- 
tive Committee shall (1) impose no inequitable restrictions on 
membership, and (2) submit to the Administrator true copies of its 
articles of association, by-laws, regulations, and any amendments 
when made thereto, together with such other information as to 
membership, organization, and activities as the Administrator may 
deem necessary to effectuate the purposes of the Act. 

Section 5. In order that the Administrative Committee shall at 
all times be truly representative of the Industry and in other respects 



comply with the provisions of the Code, the Administrator may pre- 
scribe such hearings as he may deem proper; and thereafter if he 
shall find that the Administrative Committee is not truly representa- 
tive, or does not in its By-Laws, Rules and Regulations or in other 
respects comply with the provisions of the Act and of this Code, 
may require an appropriate modification in the method of selection 
and composition of the Administrative Committee, or in its By-Laws, 
Rules or Regulations. 

Section 6. Members of the Industry shall be entitled to partici- 
pate in and share the benefits of the activities of the Administrative 
Committee and to participate in the selection of the members thereof 
by assenting to and complying with the requirements of this Code. 

POWERS AND DUTIES 

The Administrative Committee shall have the power to promul- 
gate for the Industry such rules and regulations as may be proper 
to effectuate the purposes of the Act and the provisions of the Code 
including the following : 

Section 7. From time to time to appoint and remove all agents 
and fix their compensation as the Administrative Committee shall 
deem necessary or proper for the purpose of administering the Code. 

Section 8. To levy and collect from each member of the Industry 
an equitable and proportionate payment of the reasonable expenses 
of maintaining the Administrative Committee and its activities and 
to defray all reasonable expenses arising out of the preparation and 
administration of the Code. Such reasonable share of the expenses of 
administration shall be determined by the Administrative Commit- 
tee, subject to review by the Administrator, on the basis of volume 
of business and/or such other factors as may be deemed equitable. 

Section 9. To obtain from members of the Industry such informa- 
tion and reports as are required for the administration of the Code 
and to provide for submission by members of such information and 
reports as the Administrator may deem necessary for the purposes 
recited in Section 3 (a) of the Act, which information and reports 
shall be submitted by members to such Federal and State agencies 
as the Administrator may designate ; nor shall anything in the Code 
relieve any person of any existing obligations to furnish reports to 
Government agencies. No information of a confidential nature shall 
be disseminated by any Federal or State agencies individually to the 
Industry or to the public unless in combination with other like 
data so as not to disclose individual company data. 

Section 10. To make recommendations to the Administrator for 
the coordination of the administration of this Code with such other 
codes, if any, as may be related to the industry or affect members 
of this Industry. 

Section 11. To recommend to the Administrator, after consid- 
eration by the Industry, as soon as practicable after the approval of 
the- Code and in no event later than 90 days after the organization 
meeting, a plan or plans for national credit control for the industry 
and fair trade practice provisions to govern the members of the 
Industry for the purpose of eliminating destructive price cutting 
practices and measures for industrial planning, provided that no 



139 

such recommendations will be submitted to the Administrator for 
his approval if objected to by the numerical majority of each of 
any two of the groups b, c, and d, described in Section 1 of this 
Article. 

Section 12. If the Administrator shall determine that any action 
of the Administrative Committee or any agency thereof may be 
unfair or unjust or contrary to the public interest, the Adminis- 
trator may require that such action be suspended to afford an oppor- 
tunity for investigation of the merits of such action and further 
consideration by such Administrative Committee 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. 

Article VIII — Amendments 

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

Section 2. This Code, except as to provisions required by the 
National Industrial Recovery 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 effective on approval of the Presi- 
dent, but no proposed amendments shall be submitted by the Admin- 
istrative Committee to the Administrator for his approval if ob- 
jected to in writing by a numerical majority of each of any two 
of the groups b, c, and d, described in Section 1 of Article VII hereof, 
after submission to the Industry. 

Article IX — Effective Date 

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



Approved Code No. 339. 
Registry No. 614r-l-01. 



o 



Approved Cede No. 340 
CODE OF FAIR COMPETITION 

FOR THE 

MOTORCYCLE MANUFACTURING INDUSTRY 
As Approved on March 17, 1934 



ORDER 



Approving Code of Fair Competition for the Motorcycle 
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 Motorcycle Manufacturing Industry, and 
hearings having been duly held thereon and the annexed report on 
said Code, containing findings with respect thereto, having been 
made and directed to the President: 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery, 
Approval recommended : 
K. M. Simpson, 

Division Administrator. 

Washington, D.C., 

March 17, 1934. 

47020° 425-100 34 (141) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The original Code of Fair Competition for the Motorcycle 
Manufacturing Industry was submitted on August 24, 1933, by the 
Motorcycle Manufacturers Association, an unicorporated member- 
ship society organized in 1933, representing 100% of the known mem- 
bers of the Industry in volume of production. Several revisions of 
the Code were made prior to the public hearing held on December 
12, 1933. The Code Avas revised during the recess of this hearing 
and submitted in its final form for approval. Every person who 
requested an appearance was properly heard in accordance with 
statutory and regulatory requirements. 

The Motorcycle Industry includes the manufacture of motorcycles, 
motorcycle parts, accessories, sidecars and trailers. 

The Motorcycle Industry today is represented by two known mem- 
bers, both of whom are members of the Motorcycle Manufacturers 
Association. There were six establishments in the Industry in 1931. 
Despite, however, the number of establishments which may have 
been or are now engaged in the Industry, it may be inferred that 
two establishments represent most of the Industry at the present 
time, because in 1929 these two establishments sold 88% of all the 
products of the Industry. 

It is. of course, patent, that the Motorcycle Industry, because of its 
competitive relations with the Automobile Industry, is a relatively 
declining one. From 1923 to 1929. when the production of the aver- 
age industry was expanding rapidly, the production of motorcycles 
declined 25%. The Industry apparently has attempted to meet the 
competition of the Automobile Industry by improving the quality 
and performance of its product rather than by producing a cheaper 
product, as is evidenced by the fact that the value of the average 
motorcycle changed little during this period. 

Since 1929 the Industry has had to face, in addition to an unfavor- 
able competitive situation, the diminution of general purchasing 
power. As a consequence, sales declined 509< from 1929 to 1931. 
The two establishments report that there was a further decline of 
50% in sales from 1931 to 1933. 

In 1929, 2,234 workers were engaged in the Industry. From 1929 
to the beginning of 1933 employment declined 08%. It is obvious 
that the Industry cannot in the near future reemploy all the wage 
earners engaged in the Industry in 1929. Payrolls of the Industry 
declined 76% from 1929 to 1932. Average hourly earnings 
increased 17% under the President's Reemployment Agreement. 
The proposed minimum wage and equitable adjustments in the pay 
schedules above the minimum, made in conformity with the cus- 
tomary interpretation, would have increased hourly earnings 30%. 

(142) 



143 

A 7.5% increase in prices would cover a 30% increase in labor costs. 
Hourly earnings of factory workers declined approximately 23% 
from June, 1929, to June, 1933. From June, 1933, to October, 1933, 
during the interim between which the President's Reemployment 
Agreement for a 400 minimum was adopted by the Industry, a 17% 
increase in hourly earnings was effected. The increase in weekly 
earnings was greater — 25% — due to the greater number of hours 
worked per week. 

Article I. Purpose. — States the purpose of the Code. 

Article II. Definitions. — Accurately defines specific terms appli- 
cable to the Motorcycle Manufacturing Industry as used in this Code. 

Article III. Hours. — The maximum hours are limited to forty 
hours per week for employees engaged in the processing of products 
and labor incident thereto, except that during eight weeks in any 
six month period of a calendar year, in order to meet seasonal peak 
demands, employees may be permitted to work not more than forty 
five hours per week and not more than nine hours in any one day. 
Office, salaried and other employees not covered by the above who 
receive less than $35.00 per week, shall not be permitted to work in 
excess of an average of forty hours in any one week during any five 
week period, and not to exceed forty-eight hours in any one week. 
Watchmen shall be permitted to work not more than fifty-six hours 
in any one week. Employees engaged in an executive, managerial or 
supervisory capacity who receive not less than $35.00 per week are 
not subject to any hourly limitations. The maximum hours shall 
not apply in cases of emergency repairs or maintenance where the 
safety of life or health or the protection of property necessitates 
longer hours. No employee shall be permitted to work more than 
six days in any seven day period. 

Article IV. Wages. — The minimum wage for emploj^ees engaged 
in the processing of products or any labor incident thereto is at 
the rate of forty cents per hour for any pay period. Female em- 
ployees shall be paid the same rate of pay as male employees for 
doing the same work or performing the same duties. No person 
employed in clerical or office work shall be paid less than at the 
rate of $15.00 per week except that office boys and girls may be 
paid a minimum of 80% of the established minimum for office 
employees. The established minimum rate of pay for work per- 
formed in any period shall apply irrespective of whether any em- 
ployee is actually compensated on a time rate, piece work or other 
basis. Provision is made for the employing of handicapped persons 
who shall be paid not less than 80% of the minimum wage scale. 
Provision is also made for the adjustment of wages above the mini- 
mum fixed in this Code if such has not been made since July 1st, 
1933. 

Article V. General Labor Provisions. — Provides that no employer 
shall employ any person under 16 years of age and that no person 
under 18 years of age shall be employed at operations or occupations 
which are hazardous in nature or dangerous to health. This Article 
also sets forth the mandatory provision respecting the rights of 
employees to organize and bargain collectively. It also provides 
for matters having to do with reclassification of employees, stand- 
ards for safety and health, the observance of State laws and the 



144 

posting of complete copies of the code so that they are accessible 
to employees. 

Article VI. Administration. — Establishes a Code Authority 
which shall consist of the Board of Directors of the Motorcycle 
Manufacturers Association to be elected by a fair method of selec- 
tion so as to be truly representative of the Industry , subject to the 
approval of the Administrator. In addition to the Board of Direc- 
tors named above there may be one or three representatives, without 
vote, and without expense to the Industry, to be appointed by the 
Administrator for such terms as he may specify. In addition to 
the organization of the Code Authority, the powers and duties 
thereof are also outlined in this Article. 

Article VII. Marketing and Trade Practice Rides, — Sets forth 
Trade Practices for the Industry. 

Article VIII. Export Trade. — No provision of this Code relating 
to prices or terms of selling, shipping or marketing, shall apply to 
export trade or sales or shipments for export trade. 

Article IX. Modification. — This Code and all the provisions 
thereof are expressly made subject to the right of the President in 
accordance with Sub-Section (b) of Section 10 of the Act, to cancel 
or modify any order, approval, license, rule or regulation issued under 
said Act. 

Article X. Monopolies. — Xo provision of this Code shall be so 
applied as to permit monopolies or monopolistic practices, or to elim- 
inate, oppress or discriminate against small enterprises. 

Article XL Price Increases. — This Article indicates that the 
increase in selling price, so far as possible, will be limited to actual 
additional increases in seller's costs. 

Article XII. Effective date. — This Code shall become effective 
beginning ten days after its approval by the Administrator. 

The Deputy Administrator in his final report to me on this Code 
having found as herein set forth and on the basis of all the proceed- 
ings in this matter, I find that : 

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

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

(c) The Code as revised complies in all respects with the pertinent 
provisions of Title I of the Act, including without limitation sub- 
section (a) of Section 3, sub-section (a) of Section 7, and sub-section 
(b) of Section 10 thereof; and that the Motorcycle Manufacturers 



145 

Association was and is an industrial group truly representative of 
the industry; and that said association imposed and imposes no 
inequitable restrictions on admission to membership therein. 

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

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

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

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
March 17, 1934. 



CODE OF FAIR COMPETITION FOR THE MOTORCYCLE 
MANUFACTURING INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is established as a Code of Fair Competition 
for the Motorcycle Manufacturing Industry and its provisions are 
the standards of fair competition for such industry and are binding 
upon every member thereof. 

Article II — Definitions 

Wherever used in this Code, or any supplement appertaining 
thereto, the terms enumerated in this Article shall have the mean- 
ings herein defined unless the context shall otherwise clearly indicate. 

Section 1. The term " President " as used herein shall mean the 
President of the United States. 

Section 2. The term "Act " as used herein shall mean the National 
Industrial Recovery Act. 

Section 3. The term "Administrator ''' as used herein shall mean 
the Administrator for Industrial Recovery under Title I of said Act. 

Section 4. The term " Motorcycle Manufacturing Industry " or 
" Industry " as used herein means the manufacture of motorcycles, 
replacement parts, accessories and other products which are used in 
connection with the manufacture or maintenance of motorcycles, 
including motorcycles as used for any and all purposes, motorcycle 
sidecars, motorcycle trailers and other vehicles of like nature. 

Section 5. The term " Member of the Industry " includes any- 
one engaged in the Industry, either as an employer or on his or its 
own behalf. 

Section 6. The term " Employee " as used herein means and 
includes am T 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. 

Section 7. The term " Employer " as used herein includes anyone 
by whom any such employee is employed or compensated. 

Section 8. The term " Apprentice " as used herein means an indi- 
vidual (usually a minor), bound by indenture executed in compliance 
with the laws of the state where the service provided for therein is 
to be performed to serve an emplo}^er for a term of 3* ears at a pre- 
determined wage for the period of the indenture in order to learn a 
trade, art or craft. 

Article III — Hours 

Section 1. Maximum Hours. — No employee shall be permitted 
to work in excess of forty (40) hours in any one week or eight (8) 
hours in any twenty-four (24) hour period, except as herein other- 
wise provided. A normal work day shall not exceed eight (8) hours. 

(146) 



147 

Section 2. Hours for Clerical and Office Employees. — No person 
employed in clerical or office work shall be permitted to work in 
excess of an average of forty (40) hours per week during any five 
(5) weeks period nor in excess of forty-eight (48) hours in any one 
week. A normal work day shall not exceed eight (8) hours. 

Section 3. Exceptions as to Hours. — The limitation as to hours of 
labor as specified in Sections 1, 2 and 4 of this Article III shall not 
apply to the following: 

(a) To production employees, mechanical workers or artisans in 
this Industry, who shall not be employed in excess of forty (40) 
hours in any one week nor more than eight (8) hours in any twenty- 
four (24) hour period; provided, however, that during any period in 
which a concentrated demand upon any division of the Industry shall 
place an unusual and temporary burden for production work upon 
its facilities or in which it is necessary to meet peak seasonal require- 
ments or emergencies, but in no event during more than eight (8) 
weeks in any six (C) month period, such employee of such division 
may be permitted to work not more than forty five (45) hours in 
any one week, and not more than nine (9) hours in any twenty 
four (24) hour period. 

(b) To employees engaged in emergency maintenance, or emer- 
gency repair work, involving breakdown or protection of life or 
property, provided that in such special cases at least one and one 
half times the normal wage rate for any employee so employed 
shall be paid for all hours Avorked in excess of forty (40) hours in 
any one week; provided that this overtime provision shall not apply 
in case of catastrophes involving loss of life. Such special cases, 
however, shall be reported to the Code Authority. 

(c) To outside sales or sales service men; nor to persons in a 
managerial, executive or supervisory capacity who receive not less 
than $35.00 per week. 

(d) To watchmen, who shall be permitted to work not more than 
fifty-six (56) hours in any one week. 

(e) There may be a tolerance of 10% additional hours over the 
forty (40) hours in any one week for employees engaged in the 
preparation, care and maintenance of machinery and production 
facilities, and for stock and shipping clerks and truckmen engaged 
in outside delivery and pick-up service. 

Section 4. Standard Week. — No employee shall be permitted to 
work more than six (0) days in any seven (7) day period. 

Section 5. Employment oy Several Employers. — No employer 
shall knowingly permit any employee to work for any time, which, 
when totalled with that already performed with another employer 
or employers exceeds the maximum permitted herein. 

Article IV — Wages 

Section 1. Minimum Wages. — On and after the effective date, no 
employee shall be paid in any pay period less than at the rate of 
forty (40) cents per hour, except as herein otherwise provided. 

Section 2. Piecework Compensation. — Minimum Wages. 

The established minimum rate of pay for the work performed in 
any pay period shall apply irrespective of whether an employee is 
actually compensated on time rate, piece work, or other basis. 



US 






Section 3. Within sixty (60) days from the date of approval of 
this Code, an adjustment of wages above the minimum provided 
in this Code shall ba made by the members of Industry who have 
not heretofore made such adjustment. Such adjustment shall mean 
that differentials in compensation between employees receiving the 
minimum wage and employees above the minimum existing prior to 
the date of approval of this Code shall be maintained : provided, 
however, that in no event shall rates of pay be reduced. Each mem- 
ber of the Industry shall make a report of such adjustment whether 
made prior to or subsequent to the date of approval of this Code to 
the Code Authority. 

Section 4. Female Employee*. — Female employees performing 
substantially the same work as male employees shall receive the same 
rate of pay as male employees. 

Section 5. Handicapped Persons. — 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 not below 80% of the minimum 
established by this Code, if the employer obtains from the State 
Department of Labor a certificate authorizing his employment at 
such wages and for such hours as shall be stated in the certificate. 
Each emploj r er shall file with the Code Authority a list of all such 
persons employed by him. Such handicapped persons shall not 
constitute more than 5% of the total number of employees of any 
one employer. 

Section 6. Minimum Wage For Clerical and Office Employees. — 
No accounting, clerical, office, sales or service employees working 
on a weekly basis in any office shall be paid less than at the rate of 
fifteen ($15.00) dollars per week; provided, however, that office 
boys and girls and messengers may be paid at a rate not less than 
80% of such minimum, and provided further that the number of 
such boys and girls and messengers so paid shall constitute not more 
than 5% of the total number of such employees of any one establish- 
ment of any one employer, but in any case such employer shall be 
entitled to at least two such employees. 

Section 7. Apprentices. — Employment of apprentices at rates 
of compensation below the minimum provided herein shall be per- 
mitted where they are apprenticed to an employer by an indenture 
made pursuant to the laws of the state in which such service is to be 
performed, under any apprentice system established and maintained 
by such employer, provided such indenture agreements are filed with 
the Code Authority. Employers shall not be allowed to have appren- 
tices in number exceeding 5% of the total number of skilled crafts- 
men of their special class, except that each employer shall be entitled 
to employ at least one such employee. In no case shall an apprentice 
be paid less than the minimum wage provided in Section 1 of Article 
IV in states which do not have laws governing apprentices. 

Article V — General Labor Provisions 

Section 1. Child Labor. — No person under sixteen (16) years of 
age shall be employed in the Industry. No person under eighteen 
(18) years of age shall be employed at operations or occupations 
which are hazardous in nature or dangerous to health. The Code 



149 

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 requirement if he has on file a certificate or per- 
mit 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. Provisions from the Act. — (a) Employees shall have 
the right to organize and bargain collectively through representa- 
tives of their own choosing, and shall be free from the interference, 
restraint or coercion of employers of labor, or their agents, in the 
designation of such representatives, or in self-organization, or in 
other concerted activities for the purpose of collective bargaining or 
other mutual aid or protection. 

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

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

Section 3. Reclassification of Employees. — No employer shall 
reclassify employees or duties of occupations performed or engage 
in any other subterfuge for the purpose of defeating the purposes or 
provisions of the Act or of this Code. 

Section 4. Standards for Safety and Health. — Every employer 
shall make reasonable provision for the safety and health of his 
employees at the place and during the hours of their employment. 
Standards of safety and health for the Industry shall be submitted 
to the Administrator within six (6) months after approval of this 
Code. 

Section 5. State Laws. — No provision in this Code shall supersede 
any State or Federal Law which imposes on employers more strin- 
gent requirements as to age of employees, wages, hours of work, or 
as to safety, health, sanitary or general working conditions, or 
insurance or fire protection, than are imposed by this Code. 

Section 6. Posting. — All employers shall keep posted complete 
copies of this Code and any amendments thereto in conspicuous 
places accessible to employees. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

Section 1. Organization and Constitution. — A Code Authority 
to administer this Code is hereby established and shall consist of 
the Board of Directors of the Motorcycle Manufacturers Associa- 
tion, which shall be truly representative of the various interests 
of the Industry. This Code Authority shall make investigations as 
to the functioning and observance of any provisions of this Code 
at its own instance or. upon complaint of any person affected and 
shall report the same to the Administrator. 

Section 2. In addition to the above membership there may be one 
and not more than three members, without vote, and withoutexpense 



150 

to the Industry, appointed by the Administrator as he may specify 
to serve for six month or twelve month terms from the date of 
appointment. 

Section 3. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Author- 
ity shall, (1) impose no inequitable restrictions on membership and. 
(2) submit to the Administrator true copies of its Articles of Associ- 
ation, By-Laws, Rules and Regulations and any amendment when 
made thereto, together with such information as to membership, 
organization and activities as the Administrator may deem necessaiy 
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 Administrator may prescribe 
such hearings as he ma} 7 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. 

Section 5. Members of the Industry shall be entitled to partici- 
pate in and share the benefits of the activities of the Code Authority 
and to participate in the selection of the members thereof by assent- 
ing to and complying with the requirements of this Code and sus- 
taining their reasonable share of the expenses of its administration. 
Such reasonable share of the expenses of administration shall be 
determined by the Code Authority, subject to review by the Adminis- 
trator, on the basis of volume of business and/or such other factors 
as may be deemed equitable. 

Section 6. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall this Code be construed to impose upon any member of the Code 
Authority any liability in any manner to anyone for an act of any 
other member, officer, agent or employee of the Code Authority. 
Nor shall this Code be construed to impose upon any member of the 
Code Authority exercising reasonable diligence in the conduct of 
his duties hereunder, liability to anyone for any act or omission to 
act under this Code, except for his own willful misfeasance or 
non-feasance. 

Section 7. Powers and Duties. — Subject to such rules and regula- 
tions as may be issued by the Administrator, 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. 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 investi- 
gation 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 days' notice to him of intention to proceed 
with such action in its original or modified form. 



151 

(a) To insure the execution of the provisions of this Code, and 
provide for the compliance of the Industry with the provisions of 
the Act 

(b) To adopt By-Laws, Rules and Regulations for its procedure 
and for the administration and enforcement of the Code. The Code 
Authority shall promptly report to the Administrator any By-Laws, 
Rules or Regulations adopted pursuant to this paragraph. 

(c) To obtain from members of the Industry such information and 
reports as are required for the administration of the Code, and to 
provide for submission by members of such information and reports 
as the Administrator may deem necessary for the purposes recited 
in Section 3 (a) of the Act, which information and reports shall be 
submitted by members to such administrative and/or gOA'ernmental 
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 report shall be disclosed to any other member of the Industry 
or any other party except to such governmental agencies as may be di- 
rected by the Administrator. In addition to information required to 
be submitted to the Code Authority, there shall be furnished to gov- 
ernmental agencies such statistical information as the Administrator 
may deem necessary for the purpose recited in Section 3 (a) of the 
National Industrial Recovery Act. 

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

(e) To make recommendations to the Administrator for the coor- 
dination of the administration of this Code with such other Codes, 
if any, as may be related to the Industry. 

(f) To 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 nve complying with this Code. 

(g) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the Industry in their relations 
with each other or with other industries and to recommend to the 
Administrator measures for industrial planning and production con- 
trol, including stabilization of employment. 

Article VII — Trade Practice Rules 

The following trade practices are declared to constitute unfair 
methods of competition between members of the Industry, and no 
member of the Industry shall use airy of them, either directly or 
indirectly, through any officer, agent, or employee. The violation 
of any one or more of these, together with such other trade practice 
provisions which may be recommended to the Administrator and 
approved by him after such notice and hearings as he may prescribe, 
shall constitute a violation of this Code. 

1. No member of the Industry shall publish advertising (whether 
printed, radio, display, or of any other nature), which is misleading 



152 

or inaccurate in any material particular, nor shall any member in 
any way misrepresent any goods (including but without limitation 
its use, trade-mark, grade, quality, origin, size, substance, character, 
nature, finish, material, content or preparation) or credit terms, 
values, policies, services, or the nature or form of the business 
conducted. 

2. No member of the Industry shall knowingly withhold from or 
insert in any quotation or invoice any statement that makes it in- 
accurate in any material particular. 

3. 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 such goods (including, but without limi- 
tation, the brand, grade, quality, quantity, origin, size, substance, 
character, nature, finish, material, content or preparation of such 
goods). 

4. No member of the Industry shall publish advertising which 
refers inaccurately in any material particular to any competitors or 
their goods, prices, values, credit terms, policies or services. 

5. No member of the Industry shall publish or circulate unjustified 
or unwarranted threats of legal proceedings which tend to or have 
the effect of harassing competitors or intimidating their customers. 
Failure to prosecute in due course shall be evidence that any such 
threat is unwarranted or unjustified. 

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

7. No member of the Industry shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influenc- 
ing or rewarding the action of any employee, agent or representative 
of another in relation to the business of the employer of such em- 
ployee, the principal of such agent or the represented party, without 
the knowledge of such employer, principal or party. This commer- 
cial bribery provision shall not be construed to prohibit free and 
general distribution of articles commonly used for advertising, except 
so far as such articles are actually used for commercial bribery as 
hereinabove defined. 

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

9. 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. 

Article VIII — Export Trade 

Section 1. No provision of this Code relating to prices or terms 
of selling, shipping or marketing, shall apply to export trade or 
sales or shipments for export trade. 



153 

Article IX — Modification 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of Sub-section (b) of Section 10, Title I 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 of any conditions imposed by him upon 
such approval. 

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. The Code Authority may propose such modifications, and, 
upon approval thereof by the Administrator, after such notice and 
hearing as he may prescribe, the same shall become effective as a 
part of this Code. 

Article X — Monopolies 

No provision of this Code shall be so applied as to promote 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 
will be made more difficult of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price in- 
creases except such as may be required to meet individual cost should 
be delayed, but when made such increases should, so far as possible, 
be limited to actual additional increases in the seller's costs. 

Article XII — Effective Date 

This Code shall become effective beginning ten days after its 
approval by the Administrator. 



Approved Code No. 340. 
Registry No. 1412-02. 



O 



Approved Code No. 341 
CODE OF FAIR COMPETITION 

FOR THE 

FIBRE AND METAL WORK CLOTHING BUTTON 
MANUFACTURING INDUSTRY 

As Approved on March 17, 1934 



ORDER 



Code of Fair Competition for the Fibre and Metal Work 
Clothing 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 16, 1933, for approval of a Code of 
Fair Competition for the Fibre and Metal Work Clothing Button 
Manufacturing Industry, and hearings having been duly held thereon 
and the annexed report on said Code, containing findings with re- 
spect 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, subject to the following 
provisions : 

1. That the provisions of Article VII, Section (a), insofar as they 
prescribe a waiting period between the filing of the Code Authority 
and the effective date of price lists, as originally filed and/or 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 (60) days from the effective date or until such time as there 
shall be a completion of the study of open price associations now 
being conducted by the National Recovery Administration. 

2. That the application of Article V, Section 7, of the said Code 
be stayed for a period of thirty (30) days from the effective date of 
this Code and further until such time as there shall be a hearing to 

47019° 425-99 34 (155) 



156 

determine rules and regulations of the home work provisions con- 
tained in said Code and the determination by the Administrator 
thereon. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 
Approval recommended : 
A. D. Whiteside, 

Division Administrator. 

Washington, D.C. 

March 17, 193^. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : The Public Hearing on the Code of Fair Competition for the 
Fibre and Metal Work Clothing Button Industry as proposed by 
the American Fibre and Metal Work Clothing Button Manufacturers 
Bureau was conducted in Washington on October 12, 1933. Every 
person who requested an appearance was fairly heard in accordance 
with the regulations of the National Recovery Administration. The 
Code has the approval of the Industrial, Labor, and Consumers' 
Advisory Boards of the National Recovery Administration and of 
the Legal Division. The Secretary of the American Fibre and Metal 
Work Clothing Button Manufacturers Bureau, upon the written and 
telegraphic authorization of all the members of the Industry, has 
also indicated his approval of the final draft of the Code on behalf 
of the Industry. 

It was attempted first by the National Recovery Administration 
to combine all the button industries under one Code. This proved 
to be impossible at the present time, but there is included in each 
Code a provision for the establishment of a General Button Manu- 
facturers Coordinating Council, which at some future time will 
enable a joint cooperative administration of the various Codes. 

The Industry, as defined in the Code, includes the manufacture of 
metal work-clothing " sew-on " buttons and hoof and/or horn work- 
clothing " sew-on " buttons. It also includes the manufacture of 
fibre buttons which may be used for the closing of garments or for 
ornamentation or other purposes. 

The number of concerns engaged in the Industry increased from 
4 in 1928 to 7 in 1933. The aggregate number of employees in 1928 
was 223, and in 1933 was 258. The sales volume in 1928 was $670,000. 
In 1933 it was $500,000. This indicates that although the sales 
volume has decreased, the number of employees has increased. 

The Submitting Bureau represents approximately 85% of the In- 
dustry by number of concerns, and approximately 90% by volume 
of business. 

RESUME OF THE CODE 

Article I states the purposes of the Code. 
Article II sets forth certain definitions. 
Article III prescribes the maximum number of hours. 
Article IV sets the minimum wage for the Industry. 
Article V contains the general labor provisions. 
Article VI creates the Code Authority and defines its powers and 
duties. 

Article VII contains provisions for open price lists. 

(157) 



158 

Article VIII defines certain trade practices which are unfair and 
which shall be eliminated. 

Article IX states that this Code shall not permit monopolies. 

Article X provides for the modification of this Code. 

Article XI states the general policy of limitation on price 
increases. 

Article XII sets the effective date of the Code at the tenth day 
after its approval. 

FINDINGS 

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

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanctions and supervision, hy 
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 perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3. Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant group 
is an industrial group truly representative of the aforesaid industry; 
and that said group imposes no inequitable restrictions on admission 
to membership therein. 

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

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

(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, 

Ad?ninistrat&)\ 
March 17, 1934. 



CODE OF FAIR COMPETITION FOR THE FIBRE AND 
METAL WORK CLOTHING BUTTON MANUFACTURING 
INDUSTRY 

Article I — Purpose 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Fibre and Metal Work Clothing Button 
Manufacturing Industry, and shall be the standard of fair compe- 
tition for such Industry and shall be binding upon every member 
thereof. 

Article II — Definitions 

1. The term " Industry " as used herein, includes the manufacture 
of metal work-clothing " sew-on " buttons and hoof and/or horn 
work-clothing " sew-on " buttons. This term shall also include the 
manufacture of fibre buttons which may be used for the closing of 
garments or for ornamentation or other purposes, and such other 
products as may from time to time be included under 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 nature or method of payment of compensation, or his interest 
otherwise in said Industry. 

3. The term " employer " as used herein includes anyone for whose 
benefit such an employee is 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 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. 

Article III — Hours of Labor 

1. Except as hereinafter provided, no employee shall be permitted 
to work in excess of forty (40) hours in any one (1) week, except 
that for not more than sixteen (16) weeks in any one calendar year 
overtime may be permitted when seasonal or peak demand, or break- 
down places an unusual or temporary burden upon an employer, pro- 
vided that such overtime shall in no case exceed eight (8) hours 
in any one (1) week, and, provided further, that all such over- 
time shall be paid for at the rate of one and one half (1%) times the 
hourly rate of such employee. 

(159) 



160 

2. The maximum hours fixed in the foregoing shall not apply to 
employees engaged in emergency maintenance or repair work, pro- 
vided such employees are paid one and one half (IV2) times the usual 
hourly rate for all hours in excess of forty (40). 

3. The provisions of this Article shall not apply to employees 
engaged in research work or in an executive, managerial or super- 
visory capacity, and receiving more than thirty-five dollars ($35.00) 
per week; nor to outside salesmen. 

4. No employee engaged as a fireman or watchman shall be per- 
mitted to work more than fifty-six (56) hours in any one (1) week 
unless one and one half (1%) times the hourly rate is paid for such 
overtime. 

5. No employer shall knowingly engage any employee for any 
time which, when totaled with that alreadv performed with another 
employer or employers in this Industry, exceeds the maximum 
permitted herein. 

6. Any employer who does the work of an employee shall be 
subject to the provisions of this Code as to hours of labor. 

7. The Code Authority may provide for overtime in addition to 
that hereinbefore prescribed, such additional overtime to be under 
such conditions and upon such terms as the Administrator may 
approve. 

Article IV — Wages 

1. Except as provided hereinafter, no male employee shall be paid 
less than at the rate of sixteen dollars ($16.00) per week for a 
forty (40) hour week and no female employee shall be paid less 
than at the rate of thirteen dollars ($13.00) per- week for a forty 
(40) hour week. 

2. The foregoing section shall not be construed as a discrimination 
by reason of sex. Female employees performing substantially the 
same work as male employees shall receive the same rate of pay as 
male employees- 

3. Learners may be paid at not less than the rate of eighty per 
cent (80%) of the minimum wage contained herein provided that 
the number of such learners shall not exceed five per cent (5%) of 
the total number of employees of the employer and that learners 
shall not be employed as such for a period in excess of ten (10) 
weeks, irrespective of whether they are employed by one or more 
employers. 

4. No accounting, clerical, office, service or sales employee shall be 
paid at less than the rate of fifteen dollars ($15.00) per week for a 
forty (40) hour week when employed in cities of more than 500.000 
population; nor less than at the rate of fourteen dollars ($14.00) 
per week for a forty (40) hour week in cities or places of 500.000 
population or less. 

5. 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. 

6. Equitable adjustments in pay schedules of all employees shall 
be made within thirty (30) days after the effective date of this Code 
by any employer who has not heretofore made such adjustments 



161 

under the National Industrial Recovery Act or the President's Re- 
employment Agreement. Within sixty (60) days after the effective 
date all such adjustments made under the Act or Agreement shall 
be reported to the Code Authority and the Administrator. In no 
case shall rates be reduced. 

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

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the industry. No person under eighteen (18) years of age shall 
be employed at operations or occupations which are hazardous in 
nature or detrimental to health. The Code Authority shall submit 
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 col- 
lectively, through representatives of their own choosing and shall 
be free from the interference, restraint, or coercion of emploj^ers of 
labor or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of 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 ap- 
proved or prescribed by the President. 

5. No employer shall reclassify employees or duties of occupations 
performed or engage in any subterfuge so as to defeat the provisions 
of the Act or of this Code. 

6. 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. 

7. No homework shall be permitted by members of the Industry. 1 

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

9. No provisions in this Article shall modify established prac- 
tices for privileges as to vacation periods, leaves of absence, or tem- 
porary absence from work heretofore guaranteed to office employees. 

1 See paragraph 2 (2) of order approving this Code. 



162 

Article VI — Organization, Powers and Duties of the Code 

Authority 

organization and constitution 

1. There shall forthwith be constituted a Code Authority consist- 
ing 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 provided. 

(b) Such additional members, without vote, not to exceed three, 
as the Administrator may appoint to represent such groups or inter- 
ests or such governmental agencies and for such periods as he may 
designate. 

2. The representatives of the Industry shall be selected in the 
following manner: 

(a) The five (5) representatives of the Industry shall «be selected 
by the American Fibre and Metal Work Clothing Button Manu- 
facturers Bureau. 

3. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 
by-laws, regulations, and any amendments when made thereto, 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 hearings 
as he may deem proper; and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an 
appropriate modification in the method of selection of the Code 
Authority. 

5. Members of the industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority 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 the administration shall be 
determined by the Code Authority, subject to review by the Adminis- 
trator, on the basis of volume of business and/or such other factors 
as may be deemed equitable. 

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

7. If the Administrator shall determine that any section of a 
code authority or any agency thereof may be unfair or unjust or 



163 

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 days' notice to him of intention to proceed with 
such action in its original or modified form. 

POWERS AND DUTIES 

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

(a) To insure the execution of the provisions of this Code and to 
provide, subject to rules and regulations established by the Admin- 
istrator, for the compliance of the industry with the provisions of 
the Act: Provided, however, that this shall not be construed to 
deprive duly authorized governmental agencies of their power to 
enforce the provisions of this Code or of the Act. 

(b) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To obtain from members of the industry such information 
and reports as are required for the administration of the Code, and 
in addition to information required to be submitted to any Code 
Authority all or any of the persons subject to this Code shall fur- 
nish 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 desig- 
nate ; nor shall anything in any code relieve any person of existing 
obligations to furnish reports to government agencies. No indi- 
vidual reports shall be disclosed to any other member of the indus- 
try or any other party except to such governmental agencies as may 
be directed by the President. 

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

(e) To make recommendations to the Administrator for the co- 
ordination of the administration of this Code with such other codes, 
if any, as may be related to the industry. 

(f) To provide ways and means for financing the operations 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 cooperate with the Administrator in regulating the use of 
any N.R.A. insignia solely by those members of the industry who 
have assented to, and are complying with, this Code. 

(h) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provisions to 
govern members of the industry in their relations with each other 
or with other industries, measures for industrial planning, and 



164 

stabilization of employment; and including modifications of this 
Code which shall become effective as part hereof upon approval by 
the Administrator after such notice and hearing as he may specify. 

(i) To investigate competitive articles imported in 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 
as the agency for making complaints to the proper governmental 
agency on behalf of this Industry. 

(j) 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 
representatives designated by the Code Authorities of the related 
Codes referred to above. Such representatives shall be duly author- 
ized to constitute a committee, which committee shall, as soon as 
practicable, submit to the Administrator such reports and recom- 
mendations 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 by the Code 
Authorities represented. 

Upon approval by the Administrator, after such hearings and 
notice as he shall prescribe, such recommendations of the Council, 
selected in the manner above provided for, the Code Authorities 
represented 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. 

(k) To 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 principles of such methods. 

Article VII — Open Price Lists 

Every member of the industry, who manufactures and sells any 
product of the industry not refabricated by himself so as to form 
part of another product, shall file with the secretary of the Code 
Authority a net price list and/or a price list and discount sheet in- 
dividually prepared by him showing his current prices and/or 
prices and discounts (including all discounts for wholesale or for 
quantity freight allowances and terms of payment, and the secretary 
shall immediately send copies thereof to all other members of this 
industry. 

(a) Members of the industry may change any price list and/or 
price list and discount sheet filed by him by filing with the secre- 
tary of the Code Authority a revised price list which shall not 
become effective until five days after the filing date. Copies of all 



165 

new price lists filed with the secretary with the effective date speci- 
fied shall be immediately sent to all members of this industry, who 
thereupon may file, if they so desire, revisions of their price lists 
which may become effective on the same date the first revised price 
list which was filed shall go into effect. 2 

(b) No member of the industry shall make any sale or quotation 
of any product in this industry at a price or under terms and condi- 
tions more favorable to the purchaser thereof than the price, terms 
and conditions so filed by such member in accordance with the pro- 
visions of this section and in effect at the time of such sale; nor shall 
any member of the industry make any contract or sale of any product 
of the industry at a price or on terms or conditions more favorable 
to the purchaser thereof than the price, terms and conditions estab- 
lished as aforesaid and in effect at the time of the making of such 
contract or sale. 

Article VIII — Trade Practice Provisions 

1. No member of the industry shall make or give to any purchaser 
of any product any guarantee or protection in any form against de- 
cline in the market price of such product after date of shipment. 

2. No member of the industry shall insert in any invoice a false 
record, wholly or in part, of the transaction represented on the face 
thereof, nor shall any such member withhold from any invoice any 
record customarily inserted in an invoice for the purpose of avoid- 
ing any of the provisions of this Code. 

3. No member of the industry shall ship goods on consignment, 
except under circumstances to be defined by the Code Authority, 
subject to the approval of the Administrator, where peculiar circum- 
stances of the Industry require the practice. 

4. No member of the Industry shall give, permit to be given, or 
offer to give anything of value for the purpose of influencing or re- 
warding 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 of the represented body, without the 
knowledge of such employer, principal, or party. Commercial 
bribery provisions shall not be construed to prohibit a 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. 

5. No member of the Industry shall brand or mark any commodity 
in a manner which tends to mislead or deceive purchasers with respect 
to the grade, quality, quantity, origin, size, material content, or 
preparation of such commodity. 

6. No member of the Industry shall use advertising or other repre- 
sentation which refers inaccurately in any material particular to any 
competitors or their products, prices, values, credit terms, policies, 
or services. 

7. No member of the Industry shall publish or circulate unjust or 
unwarranted threats of legal proceedings which tend to or have 

2 See paragraph 2 (1) of order approving this Code. 



166 

the effect of harrassing competitors, or intimidating any of their 
customers. 

8. (a) No member of the Industry shall sell any article at a price 
below his individual cost. However, any member of the Industry 
may meet the price of any competing member of the Industry for 
products of an equal grade and quality whose cost, under this pro- 
vision is lower, and may sell dropped lines or distress merchandise 
below such cost provided the facts of such sale are reported at once 
to the Code Authority. Cost for the purpose of the provision shall 
be determined in accordance with Section 8 (k) of Article VI of this 
Code. 

(b) When the Code Authority determines that an emergency 
exists in this Industry and that the cause thereof is destructive 
price-cutting such as to render ineffective or seriously endanger the 
maintenance of the provisions of this Code, it may cause to be deter- 
mined the lowest reasonable cost of the products of this Industry, 
such determination to be subject to such notice and hearing as the 
Administrator may require. The Administrator may approve, dis- 
approve, or modify the determination. Thereafter, during the 
period of the emergency, it shall be an unfair trade practice for 
any member of the Industry to sell or offer to sell any products 
of the Industry for which the lowest reasonable cost has been deter- 
mined at such prices or upon such terms or conditions of sale that 
the buyer will pay less therefor than the lowest reasonable cost of 
such products. When it appears that conditions have changed, the 
Code Authority, upon its own initiative or upon the request of any 
interested party, shall cause the determination to be reviewed. 

9. No member of the Industry shall offer for sale any product, 
not covered by the provisions of this Code, at a price below cost, 
in order to influence the sale of products of this Industry. 

Article IX — Monopolies 

This Code shall not be construed or applied to promote or permit 
monopolies or monopolistic practices or to eliminate or oppress 
small enterprises or to discriminate against them. 

Article X — Modifications 

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

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



167 

Article XI — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made impossible of consumation if prices of goods and serv- 
ices increase as rapidly as wages, it is recognized that price increases 
shall be delayed. But when made such increases should, so far as 
possible, be limited to actual increases in the sellers costs. 

Article XII — Effective Date 

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

Approved Code No. 341. 
Registry No. 1612-04. 

O 



Approved Code No. 342 
CODE OF FAIR COMPETITION 

FOR THE 

SANITARY AND WATERPROOF SPECIALTIES 
MANUFACTURING INDUSTRY 

As Approved on March 17, 1934 



ORDER 



Code of Fair Competition for the Sanitary and Waterproof 
Specialties 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 Sanitary and Waterproof Specialties Man- 
ufacturing Industry, and hearings having been duly held thereon 
and the annexed report on said Code, containing findings with 
respect thereto, having been made and directed to the President : 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
A. D. Whiteside, 

Division Administrator. 

Washington, D.C., 

March 17, 1934. 

47018° 425-98 34 (169) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Public Hearing on the Code of Fair Competition for 
the Sanitary and Waterproof Specialties Manufacturing Industry 
as proposed by the Sanitary and Waterproof Specialties and Manu- 
facturing Association was conducted in Washington, D.C. on 
November 20, 1933. 

Every person who requested an appearance was fairly heard in 
accordance with regulations of the National Recovery Administra- 
tion. The Code has the approval of the Labor, Industrial, and 
Consumer's Advisory Boards of the National Recovery Administra- 
tion, and of the Legal Division. The Code Committee of the 
submitting Association has also approved the final draft to the 
Code. 

DESCRIPTION OF THE INDUSTRY 

The Industry, as defined in the Code, includes the manufacture 
of waterproof crib sheets, baby pants, dress shields, women and 
children's household aprons, women's sanitary lingerie and related 
products; and the manufacture of the rubber, rubberized or stock- 
inette materials which constitute the waterproof elements of these 
articles by any manufacturer of the above mentioned products, 
whether for use in such manufacturer's own finished products or 
for sale to another manufacturer of such finished products. The 
products included within the scope of this Code are personal items 
for household use and personal attire; each embodies in whole or 
in part material having a sanitary or waterproof quality. 

The industry centers in the Eastern Seaboard States, and the 
majority of the concerns are located within one hundred miles of 
New York City. 

The Industry performs both a manufacturing and a converting 
or assembling function. The manufacturing function has to do 
with the production of the sanitary or waterproof elements ; and the 
converting or assembling function comprises the combination of these 
sanitary and waterproof elements with other material or materials. 
A majority of the manufacturers in the Industry perform both of 
these functions, but there are some whose operations are limited 
entirely to that of converting or assembling. 

The submitting Association represents 64 percent of the industry 
by membership and 75 percent of the industry by volume of business. 
There are approximately 2,500 employees in the Industry today, 
roughly 20 percent more than were employed in the Industry on 
August 1st of last year. 

(170) 



171 

LABOR PROVISIONS POSSIBLE REEMPLOYMENT 

Hours. — According to figures supplied by the Association, approxi- 
mately 88 percent of the total number of employees in the Industry 
in July of 1929 were working in excess of 48 hours per week; and 
approximately 80 percent of the total number of employees were 
employed upon a basis of 48 or more hours per week during the early 
months of 1933. This may be regarded as the typical work week of 
the Industry. The 40 hour week provided in the Code as approved 
will necessitate the employment of approximately 20 percent addi- 
tional employees in the Industry. 

"Wages. — Wide variations in the wage scale have existed throughout 
the Industry in the past. Wages as low as 200 per hour were paid 
in July 1929 with 92 percent of the total number of employees work- 
ing in plants where the minimum rate of pay was from 20c" to 25c" 
per hour. During the first six months of 1933, 81 percent of the 
total employees were engaged in plants where minimum rates of 
from 11^ to 250 per hour prevailed. Although the total increase in 
payrolls which this Code will require cannot be accurately estimated, 
it is safe to assume that the 350 minimum rate established represents 
on the average a 40 percent increase in the minimum rates of pay for 
firms employing 81 percent of the total employees in the Industry. 

Home work. — While home work has not been used extensively in 
recent years it has been utilized to some extent.- Its elimination 
will make possible the effective enforcement of the Labor provisions 
of the Code. 

RESUME OF THE CODE 

Article I gives the purpose of the Code. 

Article II sets forth certain definitions. 

Article III contains a maximum hour provision of the Code. 

Article IV establishes a minimum wage for all employees of the 
industry. 

Article V sets forth the general labor provisions. 

Article VI provides the general organization of the Code Author- 
ity, 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 provides for the elimination of home work. 

Article XI specifies the effective date. 

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 



172 

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 including and maintaining united action of labor and 
management under adequate governmental sanctions and supervi- 
sions, 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 the consumption of 
industrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

(b) Said industry normally employs not more than 50.000 em- 
ployees: and is not classified b} 7 me as a major industry. 

(c) The Code as approved complies in all respects with the 
pertinent provisions of said Title of said Act, including without 
limitation Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof; and that the applicant 
association is an industrial association truly representative of the 
aforesaid industry: and that said association imposes no inequitable 
restrictions on admission to membership therein. 

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

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

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

For these reasons the Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
March 17. 19,34. 



CODE OF FAIR COMPETITION FOR THE SANITARY AND 
WATERPROOF SPECIALTIES MANUFACTURING IN- 
DUSTRY 

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 Sanitary and Waterproof Specialties Man- 
ufacturing 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 waterproof crib sheets, baby pants, dress shields, women's and 
children's household aprons, women's sanitary lingerie and related 
products; and the manufacture of the rubber, rubberized, or stock- 
inette materials which constitutes the waterproof elements of these 
articles by any manufacturer of the above mentioned products 
whether for use in such manufacturer's own finished products or for 
sale to another manufacturer of such finished products. 

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

3. The term " employer " as used herein includes anyone for whose 
benefit or on whose business such employee is engaged and anyone 
engaged in said industry on his own behalf. 

4. The term " member of the industry " includes anyone engaged in 
the industr}^ as defined, either as an employer or on his own behalf. 

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

Article III — Hours 

1. No employee shall be permitted to work in excess of forty (40) 
hours in any one week, except as hereinafter provided. 

2. Each employee may be permitted to work a maximum of sev- 
enty-eight (78) hours in each calendar year in excess of the forty 
(40) hours per week provided for in the foregoing section; provided 
that in no event shall any employee be permitted to work more than 
eight (8) additional hours in any one week, and provided further 
that all hours worked in excess of forty (40) hours in any one 
week by any employee shall be paid for at the rate of one and one- 
third times the regular weekly or piece-work rate. 

(173) 



174 

3. The provisions of this Article shall not apply to employees en- 
gaged in an executive or supervisory capacity, earning thirty-five 
($35.00) dollars per week or more; nor to outside salesmen. 

4. No office employee shall be permitted to work in excess of 
forty (40) hours per week averaged over a period of a month, nor 
more than forty-eight (48) hours in any one (1) week. 

5. Stock clerks, shipping clerks, and outside crews shall not be 
permitted to work in excess of forty-four (44) hours in any one 
week. 

6. Engineers, firemen, repair shop crews, electricians and watch- 
men shall not be permitted to work in excess of forty-eight (48) 
hours per week. 

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

Article IV — Wages 

1. No employee shall be paid at less than the rate of thirty-five 
(35$) cents per hour, except as hereinafter provided. 

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

3. No apprentice shall be paid less than at the rate of twenty- 
eight (28$) cents per hour for the first six weeks of employment 
and thereafter not less than at the minimum rate provided in Sec- 
tion I of this Article. Any time worked by an apprentice shall be 
deemed a part of such apprenticeship period, whether such time is 
worked continuously or at more than one job or for more than 
one employer. In no case shall the total number of apprentices in 
the employ of any one employer exceed five (5%) percent of the 
total number of employees. 

4. A person whose earning capacity is limited because of age, 
physical or mental handicap, or other infirmity, may be employed 
on light work at a wage below the minimum established bj^ a Code, 
if the employer obtains from the state authority, designated by the 
United States Department of Labor, a certificate authorizing such 
person's employment at such wages and for such hours as shall 
be stated in the certificate. Such authority shall be guided by the 
instructions of the United States Department of Labor in issuing 
certificates to such persons. Each employer shall file monthly with 
the Code Authority a list of all such persons employed by him, 
showing the wages paid to. and the maximum hours of work for 
such employee. 

5. No employer shall reduce the weekly rate of compensation for 
any employee, in effect as of July 1, 1933, whether heretofore paid 
on a monthly, weekly, daily, hourly or piece-rate basis, notwith- 
standing that the hours of such employee have been reduced by the 
provisions of this Code. This provision shall not be construed to 
mean that employees employed on a part-time basis shall receive the 
same weekly compensation as full time employees, nor shall it apply 
to watchmen. 



175 
Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the industry nor anyone under eighteen (18) years of age at 
operations or occupations hazardous in nature or detrimental to 
health. The Code Authority shall submit to the Administrator be- 
fore May 1, 1934, a list of such occupations. In any State an em- 
ployer shall be deemed to have complied with this provision if he 
shall have on file a certificate or permit duly issued by the authority 
in such State empowered to issue employment or age < ertificates 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, ap- 
proved or prescribed by the President. 

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

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

7. Employers shall not reclassify employees or duties of occu- 
pations performed by employees or engage in any subterfuge so as 
to defeat the purpose of the Act or of this Code. 

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

Article VI — Administration 

To further effectuate the policies of the Act, a Code Authority 
is hereby constituted to cooperate with the Administrator in the 
administration of this Code. 

1. ORGANIZATION AND CONSTITUTION OF THE CODE AUTHORITY 

(a) The Code Authority shall consist of not less than five (5) 
nor more than eight (8) members. Five of these members shall 
be elected in the following manner: The Sanitary and Waterproof 
Specialties Manufacturing Association shall call a meeting of all 
members of the industry not later than two (2) weeks after the 
effective date of this Code at which meeting all members of the 
Industry present who have complied with the provisions of Section 2 
of this Article may vote for the five (5) members hereinabove 



176 

mentioned to comprise the Code Authority for this Industry. In 
addition thereto the Administrator may appoint three (3) members 
without vote and without expense to the Industry to represent the 
National Recovery Administration. Such members appointed by the 
Administrator shall be given notice of and may sit in 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 Associa- 
tion, By-Laws, regulations, and any amendments, when made thereto, 
together with such other information as to membership, organ- 
ization, and activities as the Administrator may deem necessary 
to effectuate the purposes of the Act. 

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

(d) The Administrator shall entertain complaints and provide 
such hearings as he may deem proper for those claiming the right 
to be represented on the Code Authority, and shall have the right 
from time to time to change the method of selection and the organ- 
ization selecting the members of the Code Authority, in order that it 
shall be truly representative of the industry. 

(e) 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 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 disapprove after thirty days' notice to him of intention to pro- 
ceed with such action in its original or modified form. 

2. Members of the industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority by assenting 
to and complying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. The 
reasonable share of the expense of the administration shall be deter- 
mined by the Code Authority, subject to review by the Administra- 
tor, on the basis of volume of business and/or such other factors as 
may be deemed equitable to be taken into consideration. 

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

(a) To elect officers and to assign to them such duties as it may 
consider advisable, and to provide rules for its procedure, for the 
selection of its members, and its continuance as the administrative 
agency of this Code, in accordance with the terms of the Act and the 
principles herein set forth. 



177 

(b) To receive, investigate, and adjust complaints of violations of 
this Code, and based upon such investigation and after such hearing 
as it may deem proper, to make recommendations in respect thereto 
to the proper authorities for the prosecution of such violations. The 
application of this section shall at all times be subject to rules and 
regulations issued by the Administrator. 

(c) To obtain through a confidential agency from members of the 
industry periodical reports in such form and at such times with re- 
spect to wages, hours of labor, conditions of employment, number of 
employees, and such other matters pertinent to the purposes of this 
Code as the Code Authority, with the approval of the Administrator, 
may require for the administration and enforcement of this Code, 
and to submit reports to the Administrator in such form and at such 
times as he may require in order that the President may be informed 
as to the observance or nonobservance of this Code and to further 
effectuate the policies of the Act. The confidential agency shall be 
in no way engaged in the industry nor connected with any member 
thereof, and all reports received by it shall be held as secret and con- 
fidential, except that they shall be made available to the Administra- 
tor. Such agency shall analyze, digest and consolidate such reports 
and shall disclose only general findings based thereon. Such gen- 
eral findings shall be made available to the Code Authority and such 
members of the industry as have assented to this Code. 

(d) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein, and to pay such agencies the cost thereof, provided that 
such agencies shall at all times be subject to and comply with the 
provisions of this Code, and provided further, that nothing herein 
shall relieve the Code Authority of any of its duties and responsi- 
bilities hereunder. 

(e) To coordinate the administration of this Code with such 
other codes, if any, as may be related to the Sanitary and Water- 
proof Specialties Manufacturing Industry or any subdivision there- 
of, with a view to promoting joint and harmonious action upon 
matters of common interest. 

(f ) To make recommendations for fair-trade practices and other- 
wise to assist the Administrator in effecting the purpose of this Code 
and the Act. Any such recommendation upon the approval of the 
Administrator after such hearing and notice as he shall prescribe, 
shall become a part of this Code. 

(g) To provide for a special N.R.A. insignia for the industry 
and to cooperate with the Administrator in regulating the use of 
such insignia solely by those employers who have assented to and 
are complying with this Code. 

(h) To provide ways and means for financing the operation of 
said Code Authority and to determine an equitable method of appor- 
tioning in the industry the cost of administering this Code. Money 
raised in any manner shall not exceed in amount such reasonable 
cost. 

(i) To 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. 



178 

Thereafter all members shall determine and/or estimate costs in 
accordance with the principles of such methods. The application 
of this provision shall be subject to the approval of the Admin- 
istrator. 

4. In addition to the information required to be submitted to the 
Code Authority, all members of the industry shall furnish such addi- 
tional 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 VII — Trade Practices 

1. Customers shall be classified as follows: (a) Wholesale mer- 
chants; (b) Retail Merchants purchasing direct from the manu- 
facturer; (c) Chain stores; (d) Mail order houses; (e) Manufac- 
turer's Sales agents. The Code Authority may from time to time 
modify, amplify and/or define the foregoing customer classifications 
subject to the right of approval by the Administrator. 

2. Any member of the Industry who markets any or all of his 
products through sales agencies or commission men and who retains 
title to such products, shall make it a condition that such sales 
agencies or commission men agree to be bound by and comply with 
all trade practice provisions of this Code to the same extent as 
applies to and is required of a member of the industry. 

3. (a) Each member of the Industry shall publish a schedule of 
its prices and terms of sale on all standard products manufactured 
and sold by it to each of the classes of customers as enumerated in 
Section I. Each published schedule shall contain the statement 
that the prices therein are subject to change without notice. 

(b) Immediately upon the adoption of a new schedule of prices 
each member of the industry shall file such new schedule with the 
Secretary of the Code Authority. All information in such price 
lists shall be made available to members of the industry, and upon 
request the Secretary shall furnish price information to any member 
of the industry and/or shall supply to any purchaser of products 
of this industry price information relative to the customer classifica- 
tion to which such purchaser belongs. 

(c) All prices and terms of sale in such price schedule shall be- 
come effective on the day of announcement and all shipments shall 
be billed at prices in effect on date of shipment, except as herein- 
after provided. 

When any member of the Industry announces a new price sched- 
ule showing increased prices, such member may invoice in accord- 
ance with the previous price schedule, any unfilled orders or por- 
tions thereof taken prior to the date of such announcement and which 
are shipped within fifteen (15) calendar days after the date of the 
announcement of the new price schedule. If at the end of the fifteen 
(15) calendar days the member of the Industry shall have on hand 
any remaining unfilled orders or portion thereof which were taken 
prior to the date of such announcement, such member shall give each 
purchaser the option of cancelling such unfilled order or portion 



179 

thereof or of accepting shipment to be invoiced in accordance with 
the price schedule in effect on date of such shipment. 

This provision shall not apply to orders accepted by any member 
of the Industry prior to the effective date of this Code! 

4. Each member of the industry shall furnish the Code Authority 
with a list showing points of origin of goods manufactured by it 
and any and all cities and towns to which transportation charges, 
or any part thereof, are allowed. 

5. Terms of sale on all merchandise shall not exceed cash dis- 
count of two (2%) per cent ten days E.O.M. Invoices rendered 
for goods shipped on and after the twenty-fifth (25th) day of 
each month may bear the date of the first day in the following 
month, but no other dating shall be allowed except as hereinafter 
provided. 

6. (a) Holiday goods may be shipped to customers in Classes 
" (b) '' and " (c) ", as defined in Paragraph 1, at the convenience 
of the member of the industry and not more than thirty (30) days' 
dating given, provided that such extra dating shall not make the 
discount date fall later than January 10 of the following year; an- 
ticipation may be allowed at a rate not to exceed one-half of one 
per cent monthly, but such datings shall be confined exclusively 
to holiday goods. 

(b) Holiday goods may be shipped to customers in Classes "(a)" 
and "(d)," as defined in Paragraph 1, at the convenience of the 
member of the Industry and not more than sixty (60) days' dating 
given, provided that such extra dating shall not make the discount 
date fall later than January 10 of the following year; anticipation 
may be allowed at a rate not to exceed one-half of one percent month- 
ly, but such dating shall be confined exclusively to holiday goods. The 
term " Holiday Goods," as used hereinabove, is defined to include 
any merchandise especially packed for the Christmas trade and 
intended to be sold for Christmas gifts, and having special containers 
or other designation appropriate to Christmas. All other mer- 
chandise is definitely excluded from the special terms provided in 
Section 6. 

7. All shipments of goods shall be made and invoices rendered 
at prices and terms as shown on current schedule of prices, and such 
invoices shall accurately show quantities, brands, numbers or other 
identifying description in accordance with published price list. 

8. (a) No member of the industry shall give to any customer 
any special prices, allowances, rebates direct or indirect, or conces- 
sions of any kind not shown on such member's published price list. 

(b) No member of the industry shall give to any customer any 
rebate or allowance of any kind on any merchandise because of a 
decline in price after shipment has been made. 

9. No member of the industn^ shall give, permit to be given, or 
offer to give anything of value for the purpose of influencing or 
rewarding the action of any employee, agent, or representative of 
another in relation to the business of the employer of such employee, 
the principal of such agent, or the represented body without the 
knowledge of such employer, principal or party. Commercial brib- 
ery provisions shall not be construed to prohibit a general distribu- 
tion of articles commonly used for advertising except so far as such 



180 

articles as actually used for commercial bribery as hereinabove 
defined. 

10. No member of the Industry shall accept the return of any 
article for credit or exchange which is subject to the provisions of 
this Code, except on account of defects in material or workmanship, 
provided, however, that articles returned on account of errors in 
shipment, delay in delivery, or failure to conform to the order may 
be accepted if returned within ten (10) days from the date of receipt 
by the customer. 

11. No member of the Industry shall ship any merchandise on 
consignment, memoranda or guaranteed sale. 

12. No member of the Industry shall by purchase or exchange, or in 
any manner whatsoever, acquire merchandise produced and/or sold by 
another member of the Industry from any customer for the purpose 
of effecting or in any manner influencing the sale of merchandise 
to such customer. 

13. No member of the Industry shall sell any article, subject to 
the provisions of this Code, at a price below nis individual cost. 
However, any member may meet the price competition of any com- 
petitor whose cost under this Code is lower. Cost for the purposes 
of this provision shall be determined in accordance with the uniform 
cost and accounting system provided for in Article VI, Section 3, 
sub-section (i) hereof, when such system is recommended by the 
Code Authority and approved by the Administrator. 

14. The sale and/or delivery of distressed merchandise, discon- 
tinued styles, salesmen's samples, and all similar merchandise shall 
be confined to two periods during the year, viz: one period from 
December 15 to January 31, and another period from July 20 to 
August 20 of each year, provided, however, that upon application 
to the Code Authority a member of the Industry may upon showing 
that such sale will not result in unfair competition obtain permission 
to dispose of merchandise covered by this provision at other periods 
than those herein provided, and upon such reasonable terms and 
conditions as the Code Authority may impose. Merchandise sold 
in accordance with this provision shall be exempt from the provi- 
sions of Section 13. Any action taken by the Code Authority under 
this provision shall be subject to review by the Administrator. 

15. Seconds and faulty or defective merchandise falling below the 
Member of the Industry's standard for regular goods shall be plainly 
and uniformly marked with the designation " irregular " or " re- 
ject ". The Code Authority may from time to time impose reason- 
able terms and conditions governing the sale of merchandise of this 
class, subject to approval by the Administrator ; and unless and until 
these terms and conditions otherwise provide, such merchandise 
shall be exempt from the provisions of Section 13. 

16. No extra discount shall be allowed on merchandise supplied 
to wholesale merchants for use as samples. 

IT. No member of the industry shall cause, or knowingly permit 
any person in its employ, or receiving from it any compensation 
in any manner whatsoever, to seek or obtain employment with a 
competitor for the purpose of acquiring knowledge concerning the 
trade secrets, or other similar confidential information relating to 
the competitor's business. 



181 

18. No member of the industry shall publish advertising (whether 
printed, radio, display or of any other nature), which is misleading 
or inaccurate in any material particular, nor shall any member 
in any way misrepresent any goods (including but without* limitation 
its use, trade mark, grade, quality, quantity, origin, size, substance, 
character, nature, finish, material, content or preparation) or credit 
terms, values, policies, services, or the nature or form of the business 
conducted. 

19. No member of the industry shall knowingly withhold from or 
insert in any quotation or invoice any statement that makes it in- 
accurate in any material particular. 

20. No member of the Industry shall brand or mark or pack 
any goods in any manner which is intended to or does deceive or 
mislead purchasers with respect to the brand, grade, quality, quan- 
tity, origin, size, substance, character, nature, finish, material 
content or preparation of such goods. 

21. On and after the effective date of this Code no member of the 
Industry shall use employees in the capacity of demonstrators and/or 
missionary salesmen subject to the following exceptions and 
conditions : 

(a) No member of the Industry shall in any manner increase the 
present number of demonstrators and/or missionary salesmen. 

(b) Each member of the Industry shall file with the Code Au- 
thority a list of all present demonstrator and/or missionary salesmen 
together wdtli information as to their location. 

(c) This list shall specify the time on or before which each such 
demonstrator and/or missionary salesman will be discontinued. 

(d) All demonstrators and all missionary salesmen are to be dis- 
continued on or before June 30, 1934. 

(e) The giving or allowing of " P.M.s " or any other forms of con- 
cessions whatsoever to sales persons in retail places of business is 
prohibited. 

The application of this provision shall be stayed for a period of 
thirty days from the effective date of this Code. The Administrator, 
after such notice and hearing as he shall prescribe, may grant to 
any member of the Industry, making application therefor within 
this period, such exemption from or exception to this provision as 
the facts presented may justify. 

22. Any member of the Industry may build up his prices applicable 
to customers in class (b) on merchandise subject to the provisions 
of this Code, to permit the granting of a trade discount in addition 
to the cash discount established in Section 5, provided that price 
lists showing such built up prices and the trade discounts applicable 
thereto are prepared and published in the regular manner, and fur- 
ther provided that the sale of merchandise at such built up prices 
shall be confined to Corset Departments. 

Article VIII — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of subsection (b) of Section 10 of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, ap- 



182 

proval, license, rule or regulation issued under Title I of said Act. 
2. This Code, except as to provisions, required by the Act, may be 
modified on the basis of experience or change in circumstances, such 
modification to be based upon application to the Administrator by 
the Code Authority and such notice of 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 discrim- 
inate against small enterprises. 

Article X — Homework 

No home work shall be permitted by employers ninety (90) days 
after the effective date of this Code. 

Article XI — Effective Date 

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



Approved Code No. 342. 
Registry No. 89&-1-01. 



O 



Approved Code No. 343 
CODE OF FAIR COMPETITION 

FOR THE 

CLAY MACHINERY INDUSTRY 
As Approved on March 17, 1934 



ORDER 



Approving Code of Fair Competition for the Clay Machinery 

Industry 

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

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. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
A. R. Glancy, 

Division Administrator. 

Washington, D.C., 

March 17, WSJ^. 

47017° 425-97 34 (183) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Clay Machinery Industry as revised after a Public Hearing held in 
Washington on the 8th day of January, 1934, in accordance with 
the provisions of the National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employment is limited to 8 hours per day and 40 hours per week 
with the exception of employees engaged in emergency maintenance 
and/or repair work or on emergencies occasioned by peak production 
periods. 

All overtime in excess of 8 hours per day or 40 hours per week 
will be paid for at one and one-half times the normal rate. 

Minimum wages of 40 cents per hour are established, except for 
clerical employees who shall receive not less than $15.00 per week. 

Female employees performing substantially the same work as male 
employees will receive the same rate of pay as male employees and 
where they displace men they will receive the same rate of pay as 
men. 

ECONOMIC EFFECTS OF THE CODE 

Under the provisions of this Code, estimates for 1934, based on 
operations for the first two months, show an increase in employment 
of approximately 30%, and an increase in the average weekly wage 
of 41%. 

The Industry, comprising approximately 22 firms, has an invested 
capital of about $4,000,000, and an average annual sales volume of 
approximately $2,000,000. 

FINDINGS 

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

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
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- 

(184) 



185 

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 limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant group 
is an industrial 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 types of the economic process have 
not been deprived of the right to be heard prior to approval of 
said Code. 

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

Hugh S. Johnson, 

Administrator. 
March 17, 1934. 



CODE OF FAIR COMPETITION FOR THE CLAY 
MACHINERY 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 Clay Machinery 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. The term " Clay Machinery Industry ", or " Industry ", 
as used herein, means and includes the manufacture and/or sale by 
the manufacturer of power driven or hand operated machines used 
for the preparation or processing of any clay body or for the forming 
of same into brick, tile, sewer pipe, tableware, or other ceramic 
products. 

Section 2. The term " Employee ", as used herein, includes anyone 
engaged in the industry in any capacity receiving compensation for 
his services, irrespective of the nature or method of payment of such 
compensation. 

Section 3. The term " Employer ", as used herein, includes an} T one 
by whom any such employee is compensated or employed. 

* Section 4. The term " Member of the Industry ", as used herein, 
includes anyone engaged in the industry as above defined, either as 
an employer or on his own behalf. 

Section 5. The term " Member of the Code ". as used herein, in- 
cludes any Member of the Industry who shall expressly signify 
assent to this Code. 

Section 6. The term " association ", as used herein, means the Clay 
Machinery Manufacturers Association. 

Section 7. The terms " President ", "Act ", and "Administrator ", 
as used herein, mean respectively the President of the United States 
of America, Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery under said Act. 

Article III — Hours 

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

During any period in which a concentrated demand upon any 
division of the Industry places an unusual and temporary burden 
for production upon its facilities, any employee of such division 
may be permitted to work not more than forty-eight (48) hours per 

(1SG) 



187 

week in not more than six (6) weeks in any six (6) months' period, 
provided, however, that time and one-half the normal rate shall be 
paid for all hours worked in excess of eight (8) hours in any one 
day or forty (40) hours in any one week. 

There shall be a tolerance of ten per cent (10%) for stock and 
shipping clerks, and delivery employees, provided, however, that 
one and one-half (IV2) times the normal rate shall be paid for all 
hours worked in excess of eight (8) per day or forty (40) per week. 

The provisions of this Article shall not apply to traveling sales- 
men, or to persons employed in a managerial or executive capacity 
who earn not less than thirty-five ($35.00) dollars per week. 

The maximum hours fixed in Section 1 shall not apply to any 
employee on emergency maintenance or emergency repair work in- 
volving breakdowns or protection of life or property, but in any 
such special case, at least one and one-half (IV2) times his normal 
rate shall be paid for hours worked in excess of eight (8) per day 
or forty (40) per week. 

Section 2. No employer shall work any accounting, clerical, serv- 
ice or sales employee more than forty (40) hours per week nor more 
than eight (8) hours in any one day. 

Section 3. Watchmen shall be permitted to work not more than 
forty-eight (48) hours per week and not more than six (6) days in 
any seven (7) day period. 

Section 4. No employee shall work or knowingly be permitted to 
work for a total number of hours in excess of the number of hours 
prescribed for each week and day, whether employed by one or more 
employers. 

Section 5. No employee shall be permitted to work more than six 
(6) days in any seven (7) day period. 

Article IV — Wages 

Section 1. The minimum wage that shall be paid to any employee, 
unless otherwise provided, shall be forty cents (400) per hour. This 
minimum wage shall apply to common labor or totally unskilled 
labor. Other classes of labor, including piece workers, shall be 
compensated at rates above this minimum. 

Section 2. All employees mentioned in Section 2 of Article III 
shall be paid not less than fifteen dollars ($15.00) per week, except 
as hereinafter provided. 

Section 3. Office boys and girls or messengers, not exceeding five 
per cent (5%) in number of the office employees of any employer, 
provided that any employer having less than twenty office employees 
shall have the right to employ one office boy, office girl or messenger, 
and provided further that the minimum wage that shall be paid 
to office boys and girls or messengers shall be not less than eighty 
per cent (80%) of the minimum wage stipulated in Section 2 of 
this Article IV. 

Section 4. No employee of the classes mentioned in Section 2 
of Article III now receiving compensation at a rate in excess of 
the minimum provided in Section 2 of this Article IV shall have 
his compensation reduced on account of any reduction in the weekly 



188 

hours of employment made to conform with the requirements of 
Section 2 of Article III. 

Section 5. Where employees' weekly earnings on piece work 
divided by the number of hours worked, produces a result less than 
the minimum wage stipulated in Section 1 of this Article IV, such 
earnings shall be so adjusted as to conform with the aforesaid 
minimum wage. 

Section 6. The rates of compensation on whatever basis com- 
puted, of all employees receiving more than the minimum herein 
prescribed, shall be equitably re-adjusted by all employers who have 
not heretofore made such re-adjustment; provided, however, that 
in no case shall hourly or piece rates be reduced. Reports concern- 
ing the action taken whether prior to or after the date of approval of 
this Code, shall be reported to the Code Authority and to the Ad- 
ministrator not later than thirty (30) days after the effective date. 

Section 7. This Article establishes a guaranteed rate of pay per 
hour of emplo} T ment regardless of whether the employee's compen- 
sation is based on a time rate, a piece work performance or otherwise. 

Article V — General Labor Provisions 

Section 1. Xo person under sixteen (16) years of age shall be 
employed in the industry, nor anyone under eighteen (18) years of 
age at operations or occupations hazardous in nature or detrimental 
to health. The Code Authority shall submit to the Administrator 
within 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 if he shall have on 
file a certificate or permit duly issued by the authority in such 
State empowered to issue employment or age certificates or permits, 
showing that the employee is of the required age. 

Section 2. As required by Section 7 (a) of the Act, it is hereby 
provided : 

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

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

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

Section 3. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees; and where they displace men, they shall receive the same 
rate of earnings as the men the}?- 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 
Industry in which both men and women are employed. 



189 

Section 4. An employer shall make payment of all wages due in 
lawful currency or by negotiable check therefor, payable on demand. 
These wages shall be exempt from any payments for pensions, insur- 
ance, or sick benefits other than those voluntarily paid by the wage 
earners, or required by the law. Wages shall be paid at least at the 
end of every two weeks period, and salaries at least at the end of 
every month. No employer shall withhold wages. The employer 
or his agents shall accept no rebates directly or indirectly on such 
wages nor give anything of value or extend favors to any person 
for the purpose of influencing rates of wages or the working condi- 
tions of his employees. 

Section 5. No provision in this Article shall modify established 
practices or privileges as to vacation periods, leaves of absence or 
temporary absences from work heretofore granted to office employees. 

Section 6. Every employer shall make reasonable provision for 
the safety and health of his employees at the place and during the 
hours of their employment. Standards for safety and health shall be 
submitted by the Code Authority to the Administrator for approval 
within six months after the effective date of this Code. 

Section 7. 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 8. Within each State this Code shall not supersede any 
laws of such State imposing more stringent requirements on em- 
ployers regulating the ages of employees, w T ages, hours of work, 
or health, fire or general working conditions than are imposed under 
this Code. 

Section 9. Each employer shall post, and thereafter maintain, in 
conspicuous places accessible to employees full copies of this Code 
and any amendments or modifications which may later be approved. 

Article VI — Administration 

To further effectuate the policies of the Act, a Code Authority 
is hereby constituted to cooperate with the Administrator in the 
administration of this Code. 

Section 1. Organization and Constitution of Code Authority. — 
(a) The Code Authority shall consist of three (3) members of the 
Association elected by the members of the Association and two (2) 
representatives of members of the Industry who are not members 
of the Association, providing they desire such representation, and 
signify their willingness to pay their pro-rata share of the cost of 
administering this Code. The representatives of the non-members 
shall be elected by the non-members in any fair manner approved by 
the Administrator. The Administrator, in his discretion, may ap- 
point not more than three (3) additional members (without vote) to 
represent the Administrator or such groups or interests as he may 
designate. 

Section 2. 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 member- 
ship, and (2) submit to the Administrator true copies of its articles 



190 

of Association, by-laws, regulations, and any amendments when 
made thereto, together with such other information as to member- 
ship, organization, and activities as the Administrator may deem 
necessary to effectuate the purposes of the Act. 

Section 3. In order that the Code Authority shall at all times 
be truly representative of the industry and in other respects comply 
with the provisions of the Act, the Administrator may provide 
such hearings as he may deem proper: and thereafter if he shall 
find that the Code Authority is not truly representative or does not 
in other respects comply with the provisions of the Act, may re- 
quire an appropriate modification in the method of selection of the 
Code Authority. 

Section 4. The Code Authority shall have the following duties 
and powers to the extent permitted by the Act ; 

(a) To collect from members of the Industry all data, reports, 
and statistics when and as required by the President and/or the 
Administrator and/or their agent, or agents; also to collect such 
data, reports, and statistics, subject to the approval of the Adminis- 
trator, as may be required from time to time by the Code Authority. 
All such information shall be confidential. Such data as may be 
requested by the Administrator shall be made available to him. 
Reports submitted by the Code Authority to the President or the 
Administrator shall be in the form prescribed or provided by him. 
Nothing in this sub-division shall be considered as limiting the 
powers conferred on the President or the Administrator by Title I 
of the Act. 

(b) To require from the members of the Industry reports re- 
garding prices, or prices and discounts on closed transactions, or 
such other pertinent data on closed transactions as in its opinion 
may be necessary to effectuate the purposes of the Act, and may 
publish the same should such procedure be deemed advisable. 

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

(d) To hear and investigate complaints and attempt to adjust the 
same in accordance with such rules and regulations as may be pro- 
mulgated from time to time by the Administrator. 

(e) To co-ordinate the Administration of this Code with such 
codes, if any, as may be adopted by any sub-division of this Indus- 
try or any related industry, with a view to providing joint and har- 
monious action on ail matters of common interest, all with approval 
of the Administrator. 

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

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

Section 5. Any notice, demand or request required or permitted 
to be given to or to be made upon any member of the Industry shall 
be sufficiently given if mailed, postage prepaid, addressed to such 
member of the Industry, at his address on file with the Secretary of 
the Code Authority. 



191 

Section 6. Members of the Industry shall be entitled to partici- 
pate in and share the benefits of the activities of the Code Authority 
and to participate in the selection of the members thereof by assent- 
ing to and complying with the requirements of this Code and sus- 
taining their reasonable share of the expenses of administration. 
The reasonable share of the expenses of its administration shall be 
determined by the Code Authority, subject to review by the Ad- 
ministrator, on the basis of volume of business and/or such other 
factors as may be deemed equitable to be taken into consideration. 

Section 7. 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, pro- 
vided that nothing herein contained shall relieve any person of any 
existing obligations to furnish reports to government agencies. 

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 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 
hereunder, be liable to anyone for any action or omission to act 
under this Code, except for his own wilful misfeasance or 
non-feasance. 

Section 9. The Code Authority shall study the effect of the vari- 
ous provisions of this Code on the Industry and consider proposals 
for amendments or modifications and make recommendations from 
time to time thereon to the Administrator, which amendments or 
modifications will become effective as part of the Code, upon approval 
by the Administrator after such notice and hearing as he may specify. 

Section 10. 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- 
quire 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 disapprove after thirty (30) days' notice to him of intention 
to proceed with such action in its original or modified form. 

Article VII — Trade Practices 

Section 1. Open Price Filmg* — Within fifteen (15) days after the 
effective elate of this Code, each member of the Industry shall file 
with the Code Authority a complete list of its current prices on 
competitive machines FOB Factory where manufactured, terms and 
trade discounts. Such price lists, terms and discounts may be re- 
vised as conditions require by filing same with the Code Authority. 
It shall be an unfair method of competition for any person to give 
any concessions directly or indirectly, by any means, from its list 
of prices, terms and discounts, so long as the same remain in force, 
and no change shall become effective in advance of filing the same 



192 

with the Code Authority which shall make such information available 
to all interested persons. 

Section 2. 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 and approved by the Adminis- 
trator 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. 

Section 3. Except to meet the selling price of a bona-fide low cost 
producer or importer of products of equivalent design, character, 
quality and/or specifications, or for the purpose of disposing of 
discontinued lines or seconds, no member shall sell his products at a 
price below his own cost thereof, costs hi all cases to be determined 
in accordance with the system of accounting provided for in Section 
2 of this Article. 

Section 4. Trade-in Allowances. — Within thirty (30) days from 
the effective date of this Code each member of the industry shall file 
with the Code Authority a schedule of his trade-in allowances on 
machines of his own manufacture and those manufactured by com- 
petitors. Such schedules may be revised from time to time by filing 
same with the Code Authority, and shall become effective on filing. 
It shall be an unfair trade practice for any member of the industry 
to make any trade-in allowance in excess of those stipulated in his 
schedule on file with the Code Authority. 

Article VIII — Unfair Trade Practices 

The following practices shall constitute unfair methods of compe- 
tition for members of the Industry and are prohibited : 

Section 1. Commercial Bribery. — Xo member of the Industry shall 
give, permit to be given, or directly offer to give, anything of value 
for the purpose of influencing or rewarding the action of any em- 
ployee, agent or representative of another in relation to the business 
of the employer of such employee, the principal of such agent or the 
represented party without the knowledge of such employer, principal 
or party. Commercial bribery provisions shall not be construed to 
prohibit free and general distribution of articles commonly used for 
advertising except so far as such articles are actually used for com- 
mercial bribery as hereinabove defined. 

Section 2. Defamation. — The defamation of competitors by falsely 
imputing to them dishonorable conduct, inability to perform con- 
tracts, questionable credit standing, or by other misrepresentations 
with the tendency and capacity to mislead and deceive purchasers 
or prospective purchasers shall be considered a violation of this 
Code. 

Section 3. Secret Rebates. — No member of the Industry shall se- 
cretly offer or make any payment or allowance of a rebate, refund, 
commission, credit, unearned discount or excess allowance, whether 
in the form of money or otherwise, for the purpose of influencing 
a sale, nor shall any member secretly extend to any customer any 
special service or privilege not extended to all customers of the same 
class. 



193 
Article IX — Modification 

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

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

Article X 

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

Article XI — Monopolies 

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

Article XII — Price Increases 

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

Article XIII — Effective Date 

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



Approved Code No. 343. 
Registry No. 1309-45. 



o 



Approved Code No. 344 
CODE OF FAIR COMPETITION 

FOR THE 

METAL LATH MANUFACTURING INDUSTRY 

As Approved on March 17, 1934 



ORDER 



Approving Code of Fair Competition for the Metal Lath 
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 Metal Lath Manufacturing Industry, and hear- 
ings having been duly held thereon and the annexed report on said 
Code, containing findings with respect thereto, having been made and 
directed to the President: 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
W. A. Harriman, 

Division Administrator* 

Washington, D.C., 

March 17, 1934. 



47016° 425-96 34 (195) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Metal Lath Manufacturing Industry in the United States, as revised 
after a public hearing conducted in Washington on November 23, 
1933, in accordance with the provisions of Title I of the National 
Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Between November 1st and March 1st employees are not permitted 
to work more than thirty-two hours a week and eight hours a day. 
During the other eight months of the year, employees are not per- 
mitted to work more than forty hours a week and eight hours a day. 

To meet production peaks, employees are permitted to work 
forty hours a week and eight hours a day during any six weeks 
between November 1st and March 1st; forty-eight hours a week and 
eight hours a day during any twelve weeks between March 1st and 
November 1st; provided one and one-half times the normal rate is 
paid for hours worked in excess of forty a week and eight a day. 

Watchmen are permitted to work fifty-six hours a week. 

Engineers and certain other classes of employees, not exceeding 
ten per cent of an employer's total number of plant employees, are 
permitted a tolerance of ten per cent over their normal hours but 
in no event more than forty-eight a week provided one and one-half 
times the normal rate is paid for all hours worked in excess of 
forty a week and eight a day. Between November 1st and March 
1st these classes of employees are permitted to work forty hours a 
week. 

Office, service and sales employees are permitted to work forty 
hours a week. Though eight hours is the daily normal, these classes 
of employees are permitted to work nine hours a day. 

Hourly limitations do not apply to managers, executives or super- 
visors who regularly receive more than thirty-five dollars a week; 
or to outside sales or sales service men. 

Hourly limitations do not apply to employees engaged in emer- 
gency maintenance and repair work or in the protection of life or 
property provided one and one-half times the normal rate is paid 
tor hours worked in excess of forty a week or eight a day. 

Employees are not permitted to work more than six days out of 
any seven. 

The minimum hourly rate for all employees, except office and sales 
employees, shall be forty cents an hour. 

Regardless of whether an employee is compensated on a time rate, 
piece work or other basis, a minimum rate of pav is established. 

(196) 



197 

Compensation of employees receiving more than the minimum 
shall be equitably adjusted and reported to the Code Authority but 
in no event shall rates of pay be reduced. 

Office and sales employees shall receive either fifteen, fourteen and 
a half or fourteen dollars a week, depending upon the population of 
the place of their employment. 

With the permission of the state authority, handicapped persons, 
not exceeding five per cent of an employer's total number of 
employees, may be employed on light work at wages below the 
minimum. 

Wages shall be paid at least bi-monthly and shall be exempt from 
any payments other than those voluntarily made by an employee 
or required by law. 

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

No one under sixteen years of age shall be employed in the industry 
nor anyone under eighteen years of age on machine operations. 

ECONOMIC EFFECTS OF THIS CODE 

This Code provides a forty cent hourly minimum rate of pay. 
The average minimum rate of pay prevailing in this industry in 
1929 was thirty-five cents an hour. A decrease to twenty-nine cents 
occurred in 1933. 

Operating under the President's Reemployment Agreement this 
industry's payrolls were increased about fifteen percent; this Code 
will effect a further increase in payrolls of more than five percent. 

The fifty-five hour average work week which prevailed in 1929 
has been reduced, with minor exceptions, to forty hours a week dur- 
ing eight months of the year and to thirty-two hours a week during 
the other four months of the year. This reduction in working hours 
should substantially increase the number of this industry's employees. 

The straight forty hour week for office employees provided by this 
Code will effect further increase in excess of the nine percent 
reabsorption effected by the President's Reemployment Agreement. 

This Code will eliminate many unfair trade practices and facilitate 
the rendition of better service to the construction industry. 

At present this industry is operating at twelve percent of capacity; 
substantial increases in production are contingent upon new con- 
struction which will result in corresponding increases 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 
proceedings in this matter; 

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 



198 

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 rehaDilitating 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 
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, therefore, I have approved this Code. 
Respectfully, 

Hugh S. Johxson, 

Administrator. 
March 17, 1934. 



CODE OF FAIR COMPETITION FOR METAL LATH 
MANUFACTURING INDUSTRY 

Article I — Purposes 

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

Article II — Definitions 

The term " metal lath manufacturing industry " or " the industry " 
as used herein includes the manufacture and sale of metal lath, metal 
lath accessories, and expanded metal products except expanded metal 
products not used for plastering purposes. 

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

The term " employer " as used herein includes anyone for whose 
benefit such an employee is so engaged. 

The term " member of the industry " includes any manufacturer 
engaged in the industry as herein defined. 

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

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

Article III — Hours 

Section 1. No employee shall be permitted to work in excess of 
thirty-two (32) hours in any week or eight hours in any day during 
the period from November 1st to the following March 1st or in 
excess of forty (40) hours in any week or eight hours in any day 
during the period from March 1st to November 1st, except as 
hereinafter provided. 

Section 2. To meet production peaks, an employee may be per- 
mitted to work in excess of thirty-two (32) hours but not to exceed 
forty (40) hours in any week or eight hours in any day during any 
six weeks during the said November to March period described in 
Section 1 hereof, and in excess of forty (40) hours but not to exceed 
forty-eight (48) hours per week or eight hours per day in any 

(199) 



200 

twelve (12) weeks during said March to November period described 
in Section 1 hereof. 

Section 3. The maximum hours for watchmen shall be fifty-six 
(56) hours in any one week. 

Section 4. Electricians, repair and maintenance crews, engineers, 
truckmen, firemen and departmental foremen, not exceeding ten 
(10) percent of an employer's total number of plant and factory 
employees, may be permitted to work a tolerance of ten (10) per- 
cent over the daily and weekly hours provided in the foregoing sec- 
tions 1 and 2, but in no event more than forty-eight (48) hours in 
any week; provided, however, that during the said November to 
March period, engineers, truckmen, firemen and departmental fore- 
men may be permitted to work forty (40) hours in any week. 

Section 5. No accounting, clerical, office, service or sales employee 
shall be permitted to work in excess of forty (40) hours per week 
or nine hours per day. A normal day shall not exceed eight hours. 

Section 6. The provisions of this Article shall not apply to em- 
ployees serving in a managerial, executive or supervisory capacity 
who regularly receive more than thirty-five (35) dollars per week; 
or to outside sales or outside sales service men. 

Section 7. All employees covered by Sections 1, 2, 4, and 8 of 
this Article III, shall be paid at one and one-half (1%) times their 
ordinary rates for every hour worked above forty (40) hours in one 
week or eight (8) hours in one day. 

Section 8. The provisions of this Article shall not apply to 
employees of any class when engaged in emergency maintenance and 
repair work or in the protection of life or property. 

Section 9. No employee shall work more than six days out of 
any seven. 

Article IV — Wages 

Section 1. No employee, excluding accounting, clerical, office and 
sales employees, shall be paid at less than the rate of forty (40) 
cents per hour. 

Section 2. Section 1 of this Article establishes a minimum rate 
of pay regardless of whether the employee is compensated on a time 
rate or piece work or other basis. 

Section 3. Equitable adjustment of compensation of employees 
receiving more than the minimum rates of pay herein prescribed 
shall be made by all employers who have not heretofore made 
such adjustments, and all employers shall within sixty (60) days 
after approval of this Code, report in full to the Code Authority 
concerning such adjustments whether made prior to or subsequent 
to such approval, provided, however, that in no event shall rates 
of pay be reduced. 

Section 4. No accounting, clerical, office, or sales employee shall 
be paid at less than the rate of fifteen (15) dollars per week when 
employed in any city of over 500,000 population or in the immediate 
trade area of any such city; or at less than the rate of fourteen (14) 
dollars and fifty (50) cents per week when employed in any city of 
between 250,000 and 500,000 population, or in the immediate trade 
area of any such city; or at less than the rate of fourteen (14) dollars 



201 

per week when employed in any city or town of less than 250,000 
population, or in the immediate trade area of any such city or town. 

Section 5. A person whose earning capacity is limited because 
of age or physical or mental handicap may be employed on light 
work at a wage below the minimum established by this Code, if the 
employer obtains from the state authority designated and guided 
by the instructions of the United States Department of Labor, a 
certificate authorizing his employment at such wage as shall be stated 
in the certificate, but such employees shall not exceed five per cent of 
any employer's total number of employees. Each employer shall file 
with the Code Authority a list of all such persons employed by him. 

Section 6. Wages shall be exempt from any payment for pensions, 
insurance, or sick benefits other than those voluntarily paid by the 
wage earners, or required by State or Federal laws. Wages shall be 
paid at least at the end of every two-week period, and salaries at 
least at the end of every month. 

Section 7. Female employees performing substantially the same 
work as male employees shall receive the same pay as male employees. 

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 on machine operations. 

Section 2. In compliance with Section 7 (a) of the Act it is pro- 
vided: (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 pur- 
pose of collective bargaining or other mutual aid or protection (b) 
No employee and no one seeking employment shall be required as a 
condition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of his 
own choosing; (c) Employers shall comply with the maximum hours 
of labor, minimum rates of pay and other conditions of employment 
approved or prescribed by the President. 

Section 3. No employer shall reclassify employees or duties of 
occupations performed nor resort to any other subterfuge for the 
purpose of defeating the purposes or provisions of the Act or of this 
Code. 

Section 4. Each employer shall post under such rules as the Ad- 
ministrator may prescribe, in conspicuous places, accessible to em- 
ployees, copies of this Code. 

Section 5. No employer shall knowingly permit any employee to 
work for any time which when totaled with that already performed 
with another employer in this or any industry exceeds the maximum, 
permitted herein. 

Section 6. No provision in this Code shall supersede any state or 
federal law which imposes on employers more stringent requirements 
as to age of employees, wages, hours of work or as to safety, health, 
sanitary or general working conditions or insurance or fire protec- 
tion than are imposed by this Code. 



202 

Section 7. Each employer shall make reasonable provisions for the 
health and safety of his workmen at the place and during the hours 
of their employment. Standards for safety and health shall be sub- 
mitted by the Code Authority to the Administrator for approval 
before June 1, 1934. 

Article VI — Costs 

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 and approved by the Adminis- 
trator, 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 method. 

Section 2. No member of the industry, after the adoption by the 
Code Authority and approval by the Administrator of a uniform 
cost formula, shall quote or sell any industry product below such 
member's cost as determined by such formula, except that any mem- 
ber of this industry may meet a competitor's established market price 
or published price on such industry product which has been filed in 
the manner provided in Article VII of this Code, or except with 
the consent of and under such terms as may be determined by the 
Code Authority acting upon application filed in writing by a mem- 
ber of the industry for permission to sell certain of its products at a 
price less than cost. Any such exception granted by the Code 
Authority shall be available to all members of the industry within 
the limitations of the exception granted. Established market price 
on any industry product for the purpose of this section means the 
price at which any competitor is selling such product. 

Article VII — Publication of Price 

Section 1. Each member of the Industry shall, within five (5) 
days of the effective date of this Code, publish and file with the 
Code Authority, or such other agency as the Code Authority may 
designate, complete lists or schedules of prices and terms and con- 
ditions of sale of all industry products offered for sale by such mem- 
ber, except to another member of the Industry and shall so publish 
and file all subsequent changes therein or revisions thereof, and such 
price lists or schedules and terms and conditions of sale, and changes 
or revisions thereof as aforesaid so filed, shall for the purpose of this 
Code be treated as the published price lists or schedules and terms 
and conditions of sale of the member filing the same, and shall 
be available to each member of the industry and after the effective 
date thereof to all interested parties. The Code Authority shall 
promptly cause a copy of all such price lists and terms and condi- 
tions of sale, and all changes therein or revisions thereof to be sent 
to each member of the Industry. 

Section 2. No member of the Industry shall offer for sale, quote 
on, or sell any of its industry products at a price or prices, or upon 
terms and conditions other than those stated in such member's pub- 
lished price list and the terms and conditions of sale then in effect; 
except to another member of the industry. 



203 

Section 3. If at any time hereafter the Administrator shall give 
his approval to the requirement that subsequent changes or revisions 
of any price lists or terms or conditions of sale as provided in Sec- 
tion 1 hereof shall be filed a specific period of time prior to the 
effective date thereof, the Code Authority may provide that all 
changes in such price lists or terms or conditions of sale or revisions 
thereof thereafter filed shall be filed five days (or such other period 
of time as may be approved by the Administrator) prior to the 
effective date of any such subsequent changes or revisions, and such 
price lists or schedules and terms and conditions of sale, and changes 
or revisions thereof as aforesaid so filed, (unless the member filing 
such changes or revisions shall cancel the same before the effective 
date thereof) shall for the purpose of this Code be treated as the 
published price lists or schedules and terms and conditions of sale 
of the member filing the same, and shall be available to each member 
of the Industry and after the effective date thereof to all interested 
parties. The Code Authority shall promptly cause a copy of all such 
price lists and terms and conditions of sale, and all changes therein 
or revisions thereof, to be sent to each member of the Industry. 
In the event that any Industry member shall not receive sufficient 
notice of the filing by any other Industry member of changes in an- 
other member's prices or terms and conditions of sale as will enable 
such member to meet such changes on the effective date thereof, such 
member may file with the appropriate agency such changes in his 
prices or terms and conditions of sale as may be required to meet the 
changes filed by another member. Changes so filed shall become 
effective on the same date as the effective date for the changes of 
such other member first filing as aforesaid, or, if those changes 
shall have already become effective, then the changes subsequently 
filed as aforesaid, shall become effective immediately. 

Article VIII — Merchandising Plan 

Section 1. The Code Authority may prepare and from time to 
time revise a merchandising plan for the sale and distribution of 
industry products, containing such provisions as may be necessary 
or proper to insure fair selling methods by the industry and to pre- 
vent unfair competitive practices, which plan, or changes therein or 
additions thereto, after adoption by the Code Authority and approval 
by the Administrator may be adopted by any member of the industry 
and included in the member's terms and conditions of sale as filed 
with the Code Authority. Upon the approval of any such merchan- 
dising plan or any changes therein or additions thereto by the Ad- 
ministrator, after such notice and hearing as he may prescribe, the 
same shall become a part of this Code and binding upon the members 
of the industry, and thereafter each member of the industry shall sell 
and distribute all industry products in accordance with such mer- 
chandising plan, or any such changes therein or additions thereto. 

Article IX — Trade Practices 

Section 1. A trade practice code for the industry is attached 
hereto as Exhibit A and made a part hereof. 



204 

Any deviation from the standards of fair dealing set forth in such 
trade practice code (adopted for this industry) or any amendments 
thereof shall be considered an unfair method of competition. 

Article X — Administration 

To further effectuate the policies of the Act, a Code Authority is 
hereby set up to administer the Code in cooperation with the 
Administrator. 

Section 1. The Code Authority shall consist of one representative 
from each member of the industry who shall subscribe to the Code 
and pay a pro rata share of the expenses as provided in Section 8 of 
Article X. In addition there may be not to exceed three members 
without vote and without cost to the industry, appointed by the 
Administrator to serve for such periods as the Administrator may 
designate. 

Section 2. The Code Authority shall be the general planning and 
fair practice agency for the industry and shall in addition to the 
other powers and duties elsewhere in the Code conferred upon it, 
have full power and authority from time to time to require such 
reports from members of the industry with respect to capacity, pro- 
duction and orders for shipment, persons employed, wage rates, 
earning and hours of labor, prices, costs and other items as may be 
necessary to advise it adequately in the administration and enforce- 
ment of the provisions of this Code or as the Administrator may 
require; and to make recommendation for the standardization of 
products by the members of the industry. It shall also have power 
and authority to propose amendments, to make rules and regulations 
as may be required for the effective exercise of the powers herein con- 
ferred upon it for the administration of this Code and to cooperate 
with the Administrator and other proper Government officials in the 
enforcement of this Code. 

Section 3. In order to assure confidential treatment of individual 
figures, all reports, data and information which the said Code Au- 
thority is empowered to collect or receive shall be collected or 
received by an agency appointed by the Code Authority, not a 
member or connected with a member of the industry, or, in the ab- 
sence of such appointment, the Secretary of the Metal Lath Manu- 
facturers Association is hereby appointed the agent to collect or 
receive the same. The agency so collecting or receiving any such 
reports, data and information shall keep the same confidential as to 
individual reports except when required by the Administrator. All 
such reports, data and information shall be fully available at all 
times to the proper Government officials. 

Section 4. Collusion between an} 7 industry member and any such 
confidential agency for the purpose of examining any report or data 
or obtaining any information collected or received by such confi- 
dential agency shall constitute unfair competition and shall be a 
violation of the Code. 

Section 5. The Code Authority may appoint a committee of not 
more than five of members of the industry and delegate to any such 



205 

committee any of the authority herein granted to the Code Au- 
thority, including the carrying on of all communications and con- 
ferences with the President or his agents concerning the approval 
or amendment of this Code or any of its provisions or any other 
matters relating thereto. Any committee so appointed shall exer- 
cise only the authority specifically delegated to it by the Code 
Authority in the resolution appointing the same and the Code 
Authority shall be responsible for all authorized acts of any such 
committee. 

Section 6. At any duly called meeting of the Code Authority, a 
three-fourths affirmative vote of the industry members present at 
the meeting either in person or by the member's alternate, shall 
be required to make effective any action of the Code Authority. 
Any member of the Code Authority, in his absence, may be repre- 
sented by an alternate, appointed in writing by him, who shall be 
a person actively connected with the same company with which 
the member making the appointment is connected. A majority 
of the voting members of the Code Authority at any duly called 
meeting shall constitute a quorum. 

Section 7. Any interested party shall have the right of complaint 
to the Code Authority and a prompt hearing and decision thereon 
under such rules and regulations as maj^ be approved by the Adminis- 
trator, in respect to any act of the Code Authority or any agency 
designated by the Code Authority to act on its behalf. If the Ad- 
ministrator 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 sus- 
pended 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 disapprove after 
thirty (30) days' notice to him of intention to proceed with such 
action in its original or modified form. 

Section 8. All expenses involved in administering the Code shall 
be determined by the Code Authority and prorated equitably, subject 
to disapproval by the Administrator, among members of the industry 
who assent to the Code or accept any of the benefits thereof. The 
proration of all such expenses shall be on the basis either of volume 
of output or dollar value of domestic sales (excluding sales to other 
industry members signing the Code) during a specified period of 
time as the Code Authority shall determine. 

Section 9. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor shall 
any member of the Code Authority be liable in any manner to any- 
one for any act of any other member, officer, agent or employee of 
the Code Authority, nor shall any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties hereunder 
be liable to anyone for any action or omission to act under the Code 
except for his own wilful misfeasance or non-feasance. 

Section 10. In addition to information required to be submitted 
to the Code Authority, all or any of the persons subject to this code, 
shall furnish such statistical information as the Administrator may 
deem necessary for the purposes recited in Section 3 (a) of said act 



206 

to such Federal and State agencies as the Administrator may desig- 
nate; nor shall anything in any code relieve any person of any 
existing obligation to furnish reports to Government agencies. 

Article XI — General 

Section 1. Each trade or industrial association directly or in- 
directly participating in the selection or activities of the Code 
Authority shall (1) impose no inequitable restrictions on member- 
ship, and (2) submit to the Administrator true copies of its articles 
of association, by-laws, regulations, and any amendments 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. 

Section 2. No provisions of this Code shall be interpreted or 
applied in such manner as to promote or permit monopolies or 
monopolistic practices; permit or encourage unfair competition; 
eliminate or oppress small enterprises or discriminate against them. 

Section 3. Articles VI, VII, VIII and IX of this Code, and any 
Trade Practice Code or Merchandising Plan incorporated herein or 
adopted pursuant hereto shall not apply to industry products sold 
for export. 

Section 4. As required by Section 10 (b) of Title I of the Act 
the following provision is contained in this Code : The President 
may from time to time cancel or modify any order, approval, license, 
rule or regulation issued under said Act. 

Section 5. Such of the provisions of this Code as are not required 
to be included herein by the Act may upon submission to the industry 
and approval by the Administrator, be modified or eliminated as 
changes in circumstances or experience may indicate. It is contem- 
plated that from time to time supplementary provisions to this Code 
or additional codes may be proposed to prevent unfair competition 
in prices and other unfair and destructive competitive practices and 
to effectuate the other purposes and policies of Title I of the Act and 
any such supplementary provisions or additional codes, after sub- 
mission to the industry 7 and approval by the Administrator after 
such notice and hearing as he mav prescribe, shall become a part of 
this Code and effective as such. "The Code Authority may make any 
such proposals for modification, supplementary provisions or 
additional codes in the manner above provided. 

Section 6. Violation by any member of this industry of any of 
the provisions of this Code or of any approved amendment hereof 
shall constitute an unfair method of competition. 

Section 7. This Code and all of the provisions thereof shall cease 
to be in effect on June 16, 1935, or sooner if the President shall by 
proclamation or the Congress shall by joint resolution declare that 
the emergency recognized by Section 1 of the National Industrial 
Recovery Act has ended. 

Section 8. This Code shall be in effect beginning the second 
Monday after its approval by the President. 

Approved Code No. 344. 
Registry No. 1123-03. 



.Exhibit A 
TRADE PRACTICE CODE 

Section 1. Any deviation from any of the provisions of this Code shall be 
deemed an unfair method of competition in the Metal Lath Industry. 

Section 2. Standard Forms of Quotation and Contract. — The Code Authority 
may adopt standard forms of quotations and contracts for the industry, subject 
to approval thereof by the Administrator, and all quotations and contracts shall 
be made substantially in accordance with the terms and conditions set forth in 
such standard forms of quotations and contracts so adopted and approved. 
Any departure from said standard terms and conditions in the making of any 
quotation or contract in any transaction shall be deemed an unfair method of 
competition. 

Section 3. Commercial Bribery. — No member of the Industry shall give, per- 
mit to be given, or directly offer to give, anything of value for the purpose of 
influencing or rewarding the action of any employee, agent, or representative of 
another in relation to the business of the employer of such employee, the princi- 
pal of such agent or the represented party, without the knowledge of such 
employer, principal or party. Commercial bribery provisions shall not be 
construed to prohibit free and general distribution of articles commonly used 
for advertising except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

Section 4. Rebates. — The secret payment or allowance of rebates, refunds, 
credits, unearned discounts, or other allowances, whether in the form of money 
or gifts, or otherwise, or the extending to certain purchasers special privileges, 
including discriminatory allowances for advertising, damage claims, services 
or other considerations not customarily extended to all purchasers under like 
terms and conditions, shall be deemed an unfair method of competition. 

Section 5. Defamation of Competitors. — The defamation of a competitor by 
words or acts which untruthfully call in question its business integrity, its 
ability to perform its contracts, its credit standing or the grade, quality or 
quantity of its goods shall be deemed an unfair method of competition. 

Section 6. Inducing Breach of Contract. — The wilful interference with any 
existing contracts between any other manufacturer and a dealer or consumer, 
or any other party, involving or relating to the sale of industry products for 
the purpose or with the effect of dissipating, destroying or appropriating, in 
whole or in part, the business represented by such contracts, shall be deemed 
an unfair method of competition. 

Section 7. False Branding. — The marking, branding or labeling of industry 
products or the shipment of these products without label or identification tags, 
or the misrepresentation in connection with the sale of such products, for the 
purpose or with the effect of misleading or deceiving purchasers with respect 
to the quantity, quality, price, weight, gauge, metal or finish thereof, shall be 
deemed an unfair method of competition. 

Section 8. Imitation of Trade-Mark. — The imitation or simulation of any 
trade-mark, trade name, package, brand or label of a competitor in such 
degree as to deceive or have the tendency to deceive customers shall be deemed 
an unfair method of competition. 

Section 9. Discrimination in Price. — Discrimination in price, either directly 
or indirectly between different purchasers of commodities, except (1) on account 
of difference in quantity, quality or grade of product sold, (2) the making of 
a reasonable differential in price charged to different classes of trade, (3) the 
making of different prices in different markets, according to usual distribution 
of such products prevailing in the trade or industry, shall be deemed an unfair 
method of competition, provided, however, that nothing herein contained shall 
prevent persons engaged in selling the products of this industry from selecting 
their own customers. This section shall not apply to sales to another member 
of the industry. 

Section 10. Consignments. — 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 11. Shipment Without Order. — The making of shipments, other 
than those involving mere transfer of industry products to manufacturers' 

(207) 



208 

warehouses or plants, without In each case having an order from a customer 
for shipment at the time of making shipment, shall be deemed an unfair 
method of competition. 

Section 12. Expiration of Quotation, — The quoting of prices without the 
specific provision that such quotations are subject to change without notice, 
within such limitations as are imposed by this Code, except for quotations on 
specific job contracts, or where necessary, for Federal Government, State, 
County or Municipal bids, shall be deemed an unfair method of competition. 
Section 13. Failure to State Unit Price. — The submission of bids for two 
or more commodities, one or more of which are industry products, in which 
the unit price of each commodity is not clearly stated, shall be deemed an 
unfair method of competition. 

Section 14. Specific Job Contracts. — Making any contract or accepting any 
order for industry products for future delivery to cover any specific job 
without first having received a true copy of a bona fide contract, or definite 
supporting information evidencing a bona fide contract, between the dealer 
and contractor who has been awarded the contract, covering any such material 
required for that job and stating definitely the quantity of such material 
required, the location of the job and the name of the contractor, shall be 
deemed an unfair method of competition ; provided, however, that nothing 
herein shall prevent a member of the industry from protecting any quotation 
covering a specific job for a period not exceeding 30 days, except Federal Gov- 
ernment job quotations which may be protected for 60 days, but when no 
specific job contract is made with the dealer or contractor within 30 days, or 
within 60 days in the case of the Federal Government jobs, then any contract 
subsequently executed for the sale of products for such job shall be made 
at the price then in effect. 

Section 15. Lump Sum Contracts. — The submission of bids and/or accept- 
ance of orders for industry products by a member on a lump sum basis shall 
be deemed an unfair method of competition, except where lump sum bids are 
made for floor lath with steel joists and/or ceiling lath for permanent form 
construction, then such bids shall specify the quantity, type of lath and unit 
price. 

Section 16. Combination Sales. — The selling or offering for sale of com- 
modities not within the Industry at prices below the current list-price therefor, 
in order to influence the sale of industry products shall be deemed an unfair 
method of competition. 

Section 17. Substitution. — The marking and selling of any industry products 
having superior qualities and higher prices, as inferior and lower priced 
products, and so marketing at a lower price than that established by the 
member for such superior products shall be deemed an unfair method of 
competition. 

Section 18. Contingent Sales. — The purchase of material from a buyer of 
industry products made contingent on the sale of industry products by a 
member of the industry shall be deemed an unfair method of competition. 

Section 19. Splitting of Compensation. — Splitting of compensation received 
by an employee or agent of a member with the buyer of industry products for 
the purpose or with the effect of influencing a sale shall be deemed an unfair 
method of competition. 

Section 20. — Shipping on Specific Job Contracts. — The shipping of industry 
products on specific job contracts in excess of the materials required for the 
job shall be deemed an unfair method of competition. 

Section 21. Outstanding Contracts. — All bona fide contracts for sale of 
industry products taken before the effective date of this code and filed (except 
sales to other members) with the Code Authority and all bona fide contracts 
and orders for shipment taken after the effective date of this Code may be 
shipped at the price at which the contract or order was taken ; and material 
sold under such contracts shall be applied only on the contract or order under 
which shipment is so made. 

Section 22. Orders for Material and Labor. — The acceptance by a member 
of an order for industry products together with the labor required for the 
erection of same and/or the guaranteeing by a member of the cost of erection 
of same, shall be deemed an unfair method of competition. 

o 



Approved Code No. 345 
CODE OF FAIR COMPETITION 

FOR THE 

COLLAPSIBLE TUBE INDUSTRY 

As Approved on March 17, 1934 



ORDER 



Approving Code of Fair Competition for the Collapsible Tube 

Industry 

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

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

Approval recommended : 
W. A. Harriman, 

Div is ion A dmims trator. 

Washington, D.C. 

March 17, 193^ 

47015° 425-95 34 (209) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Collapsible Tube Industry, the hearing having been conducted 
thereon in Washington, D.C., on February 1, 1934, in accordance 
with the provisions of the National Recovery Act. 

RESUME OF CODE AS TO WAGES AND HOURS 

This Code provides that the working hours shall not exceed eight 
(8) hours per day and forty (40) hours per week, except that em- 
ployees may work thirty-two (32) hours in excess of a fort}' (40) 
hour week in any 6 months' period, to take care of peak demands 
caused by Radio Broadcasting. The normal working week for 
power plant employees is forty-four (44) hours and for watchmen 
fifty-six (56) hours. Managerial, executive and supervisory em- 
ployees receiving not less than $35 per week and outside salesmen 
are exempted from the provisions as to working hours. 

The minimum rates of pay provided for production labor are 400 
per hour for men and 35^ per hour for women. With the exception 
of watchmen and power plant employees time and one-half will be 
paid all employees who work in excess of eight (8) hours per day 
or forty (40) hours per week. All other employees such as office 
employees will be paid not less than $15 per week. 

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

Child Labor is prohibited and no person under 18 years of age shall 
be employed in a hazardous occupation. 

GENERAL STATEMENT 

The Collapsible Tube Industry as defined in the Code includes the 
manufacture, production and sale of collapsible tubes. As collaps- 
ible tubes are used as containers for such articles as tooth paste, shoe 
cream, cement and vaseline, the customers of this Industry are almost 
entirely confined to the manufacturers of these articles. 

While figures as to the total investment in the Industry were not 
obtainable, the number of wage earners in normal times is about 
1,400 employees with an estimated payroll of $1,750,000. 

In 1929 which may be considered a normal year the operations were 
at a rate of approximately 86% of capacity and their value of pro- 
duction was $8,913,000. It is to be noted that the value of labor in 
the products was $700,000 less than during the year 1927 due to the 
development of other types of containers and the increase in popu- 
larity of tooth powder over tooth paste. 

(210) 



211 

Operations in 1931 were about 85% of capacity; in 1932 about 76% 
of capacity ; in 1933 about 80% of capacity. 

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

FINDINGS 

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

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural 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 
emplo} 7 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 Subsec- 
tion (b) of Section 10, thereof; and that the applicant group is a trade 
association truly representative of the aforesaid Industry; and that 
said association imposes no inequitable restrictions on admission to 
membership therein. 

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

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

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

For these reasons, therefore, I have approved this Code ; provided, 
however, that the continued participation of the Collapsible Tube 
Industry in the Code Authority after 30 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. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
March 17,. 1934. 



CODE OF FAIR COMPETITION FOR THE COLLAPSIBLE 
TUBE INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Recovery 
Act, the following provisions are established as a Code of Fair Com- 
petition for the Collapsible Tube Industry and shall be the standard 
of fair competition for such Industry and shall be binding on every 
member thereof. 

Article II — Definitions 

Section 1. The term " Collapsible Tube Industry " means the 
manufacture, production and sale of collapsible tubes. 

Section 2. " Member of the Industry " means any individual, part- 
nership, association, corporation or other enterprise engaged in the 
manufacture and sale of collapsible tubes. 

Section 3. The term "Association " means the Collapsible Tube 
Manufacturers' Association, Inc. 

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

Section 5. The term " employer " as used herein shall include 
every individual, partnership, association, corporation, or properly 
appointed receiver or trustee, or other person engaged in the manu- 
facture or sale of collapsible tubes. 

Section 6. The term " employee " as used herein includes any per- 
son engaged in any phase of the Industry in any capacity receiving 
compensation for his services, irrespective of the method of payment 
of such compensation. 

Section 7. The term " Code Authority " means the administrative 
body provided for in Article VI of this Code. 

Article III — Hours 

Section 1. No employee shall be permitted to work in excess of 
40 hours in any one week or 8 hours in any one day, except as herein 
otherwise provided, nor more than 6 da} T s in any one week. 

Section 2. These limitations shall not apply to branches of this 
Industry in which peak demands place an unusual and temporary 
burden upon such branches provided that not to exceed 32 hours 
excess may be worked in any six months' period, and that in no case 
shall the hours worked in any one week exceed 48. 

Section 3. All employees shall be paid at the rate of time and one- 
half for all hours worked in excess of 40 hours per week or 8 hours 
per day except as hereafter provided. 

(212) 



213 

Section 4. Provided further, that power plant firemen and engi- 
neers and watchmen because of the nature of their occupation, be 
excepted from the limitation of the maximum hours and overtime 
set forth in the preceding paragraphs, but in no case shall power 
plant firemen and engineers work in excess of 44 hours in any one 
week, nor shall watchmen work in excess of 56 hours in any one week. 

Section 5. The maximum hours fixed in this section shall not apply 
to any employee on emergency maintenance or emergency repair 
work, including breakdowns or protection of life or property, but 
in any such special case, at least one and one half times his normal 
rate shall be paid for hours worked in excess of the maximum here- 
inabove provided for said employe. 

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

Section 7. Provided, further, that nothing in the foregoing em- 
ployment provisions shall apply to employees engaged in executive, 
managerial and supervisory capacities, who receive $35.00 or more 
per week and outside salesmen, except that whenever executives or 
owners of the plant engage in the processing of the products of the 
plant such executives or owners shall be subject to the maximum 
hours applicable to the particular work in which they may be 
engaged. 

Article IV — Wages 

Section 1. On and after the effective date, the minimum wage 
which shall be paid by any employer to any employee engaged in 
the processing of products in the Industry and any labor incident 
thereto, shall be 400 per hour for males and 350 per hour for 
females. Provided further that learners may be paid not less than 
80% of the above minimum wage for a period not to exceed 30 
days in the industry, irrespective of whether or not they are or have 
been employed by one or more employers; and the total number of 
such learners shall not exceed 5% of the total number employed 
by any such employer in any calendar month. 

Section 2. Equitable adjustment of compensation of employees 
receiving more than the minimum rates of pay herein prescribed 
shall be made by all employers who have not heretofore made 
such adjustments, and all employers shall within thirty (30) days 
after approval of this Code, report in full to the Code Authority 
concerning such adjustments whether made prior to or subsequent 
to such approval, provided, however, that in no event shall hourly 
rates of pay be reduced. 

Section 3. This article establishes a minimum rate of pay which 
shall apply, irrespective of whether the employee is actually com- 
pensated 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; and where they displace men, they shall receive the 
same rate of earnings as the men they displace. The Code Author- 
ity shall within ninety days after the effective date of this Code 
file with the Administrator a description of all occupations in the 



214 

Industry, indicating the number and sex of the employees in each 
occupation. 

Section 5. On and after the effective date, the minimum wage 
that shall be paid by any employer to all other employees not 
covered by Section 1, and commission sales people, shall be not less 
than at the rate of $15.00 per week. 

Section 6. Office boys and girls, not to exceed more than 5% of 
all office employees of the employer and in any case not less 'than 
one shall be exempt from the provisions of this Article provided 
they are paid at a rate of not less than 80% of the above minimum 
wages. 

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 not less than 80% of 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 
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 Labor in 
issuing certificates to such persons. Each employer shall file with 
the Code Authority a list of all such persons employed by him. 
Provided, however, that the total number of such employees shall 
not exceed 2% of the total number of employees in an individual 
plant. 

Article V — General Labor Provisions 

Section 1. Child Labor Provisions. — No person under sixteen 
(16) years of age shall be employed in the Industry. No person 
under eighteen (18) years of age shall be employed at operations or 
occupations which are hazardous in nature or dangerous to health. 
The Code Authority shall submit to the Administrator 60 days after 
the effective date of the 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 
issued by the Authority in such State empowered to issue employment 
or age certificates or permits showing that the employee is of the 
required age. 

Section 2. Provisions from the Act. — In compliance with Section 
7 (a) of the Act, it is provided : 

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

(b) That no employee and no one seeking employment shall be re- 
quired as a condition of employment to join any 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. 



215 

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

Section 4. Standards for Safety and Health. — 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 Admin- 
istrator within six (6) months after the effective date of this Code. 

Section 5. State Laws. — No provision in this Code shall supersede 
any State or Federal law which imposes more stringent requirements 
on employers as to age of employees, wages, hours of work, or as to 
safety, health, sanitary or general working conditions, or insurance, 
or fire protection, than are imposed by this Code. 

Section 6. Posting. — Within 20 days after the effective date, each 
employer shall post, and thereafter maintain, in conspicuous places 
accessible to employees full copies of this Code and any amend- 
ments or modifications which may later be approved. 

Article VI — Organization, Powers and Duties of Code 

Authority x 

Section 1. A code authority of five members representative of the 
Industry shall be elected by the Industry and shall serve for the 
period of one year. In addition, the Administrator may appoint not 
to exceed three non-voting representatives. All members engaged in 
the Industry shall be entitled to participate in the election of such 
Industry members of the Code Authority. 

(a) Such election shall be had at general meetings of the Industry 
and a majority vote shall be necessary for election. At least sixty 
percent of the members of the Industry shall constitute a quorum 
for such election. Reasonable notice of such meeting shall be given 
to all members of the Industry. 

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

(c) In order that the Code Authority shall at all times be truly 
representative of the industry and in other respects comply with the 
provisions of the Act, the Administrator may prescribe such hear- 
ings as he may deem proper ; and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an 
appropriate modification in the method of selection of the Code 
Authority. 

(d) Members of the Industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authority and 

1 See paragraph 2 of order approving this Code. 



216 

to participate in the selection of the members thereof by assenting 
to and comptying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. Such 
reasonable share of the expense of administration shall be determined 
by the Code Authority, subject to review by the Administrator, on 
the basis of volume of business and/or such other factors as may be 
deemed equitable. 

Section 2. The Code Authority shall have the following further 
powers and duties, the exercise of which shall be reported to the 
Administrator. 

(a) To insure the execution of the provisions of this Code and 
provide for the compliance of the Industry with the provisions of 
the Act. 

(b) To collect from the members of the Industry through an 
impartial agent with full protection to each member as to the confi- 
dential nature of the material all data and statistics required by the 
Administrator or pertinent to the effectuation of the Act and said 
agent shall compile the data and statistics and furnish the same to 
the National Recovery Administration and to the members of the 
Industry all in such form and manner as the Code Authority shall 
prescribe subject to the approval of the Administrator. 

(c) To make studies and investigations for the establishment of 
classifications, dimensional standards, and quality specifications for 
products of the Industry. 

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

(e) To make recommendations to the Administrator for the coor- 
dination of the administration of this Code with such other codes, 
if any, as may be related to the Industry. 

(f ) To cooperate with the Administrator in regulating the use of 
any X.R.A. insignia solely by those members of the Industry who 
have assented to, and are complying with, this Code. 

(g) To appoint a trade practice committee which shall meet with 
the trade practice committees appointed under such other Codes as 
may be related to the Industry for the purpose of formulating fair 
trade practices to govern the relationship between production and 
distribution employers under this Code and such others, to the end 
that such fair trade practices may be proposed to the Administrator 
as amendments to this Code and such other Codes. 

(h) The Code Authority may adopt a method of selling by pub- 
lication of price schedules by all members of the Industry, if and 
when a majority of the members of the Industry so determine at a 
general meeting of the Industry, and upon the approval of the 
Administrator. 

(i) 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 



217 

that such action be suspended to afford an opportunity for inves- 
tigation 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 days' notice to him of intention to 
proceed with such action in its original or modified form. 

(j) In addition to information required to be submitted to any 
code authority, all or any of the persons subject to this code 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 this code relieve any person of 
any existing obligations to furnish reports to Government agencies. 
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 designated by the Administrator. 

Article VII — Provisions Regarding Trade Practices 

For all purposes of the Code the acts described in this Article 
shall constitute unfair practices. Any member of the Industry 
who shall directly, or indirectly through any officer, employee, agent 
or representative, use, employ,, or permit to be employed, any of 
such unfair practices shall be guilty of a violation of the Code. 

Section 1. Secret allowances of any kind. 

Section 2. No member of the Industry shall withhold from or 
insert in any quotation or invoice anything that makes it inaccu- 
rate in any material particular. 

Section 3. No allowance to be made for the return of containers 
or boxes or any parts thereof. Nor shall any consideration direct 
or indirect be given for containers, boxes or any parts thereof in 
which collapsible tubes have previously been packed. 

Section 4. Making of materially inaccurate or derogatory state- 
ments about competitors' products or regarding the character, man- 
agement, or financial standing of a competitor. 

Section 5. Materially false or misleading advertising, mislabeling 
and misbranding. 

Section 6. The production or reproduction of brands or trade 
marks which to the knowledge of the member of the Industry 
involved, so nearly resemble brands or trade marks on the market 
as to confuse or deceive the public. 

Section 7. No member of the Industry shall attempt to induce 
the breach of an existing contract between a competitor and custo- 
mer or source of supply; nor shall any such member interfere with 
or obstruct the performance of such contractual duties or services. 

Section 8. Entering knowingly into quantity contracts with buy- 
ers without obligation on their part to take delivery of the quantities 
specified in the contract or on the quotation for the purpose of 
giving special unwarranted prices. 

Section 9. No member of the Industry shall sell any commodity 
at a price below his own allowable cost, as determined by the cost 



218 

accounting system provided for in Article IX, Section 2 ; provided, 
however, any member may meet the price competition of any one 
whose allowable costs under this Code provision are lower. 

Article VIII — Modification 

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

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 modification to be based upon application to the Ad- 
ministrator and such notice and hearing as he shall specify, and 
to become effective on approval of the President. 

Article IX — Costing 

Section 1. In the event any member or members shall file a com- 
plaint with the Code Authority, accusing another member or mem- 
bers of violating the provisions of Article VII, Section 9 it shall 
then be incumbent upon the Code Authority to investigate such com- 
plaint, employing such accountants as may be deemed necessary by 
the Code Authority. 

Section 2. 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, which shall be filed 
with the Administrator and shall be effective, subject to the approval 
of the Administrator, after such notice and hearing as he may 
require. 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 principle of such methods. 

Section 3. The Code Authority may on the complaint of any 
affected party, investigate whether any given product or products 
has or have been sold below cost and report the results of such in- 
vestigation to the proper authority or authorities for appropriate 
action. The Code Authority subject to appeal to the Administrator 
may, as between parties who have expressly assented to this provi- 
sion, assess the costs of such investigation againt the complainant 
or the defendant, or both. 

Article X — Exports 

No provisions of this Code relating to prices or terms of selling, 
shipping or marketing, shall apply to export trade or sales or ship- 
ments for export trade. 



219 
Article XI — Monopolies 

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

Article XII — Effective Date 

This code shall become effective the third Monday after it is 
approved by the President. 



Approved Code No. 345. 
Registry No. 1140-01. 



O 



Approved Code No. 346 
CODE OF FAIR COMPETITION 

FOR THE 

BOWLING AND BILLIARD OPERATING TRADE 
As Approved on March 17, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Code of Fair Competition for the Bowling and Billiard Operating 

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 the Bowling and Billiard Operating Trade, 
and hearings having been held thereon and the Administrator having 
rendered his report containing an analysis of the said Code of Fair 
Competition together with his recommendations and findings with 
respect thereto, and the Administrator having found that the said 
Code of Fair Competition complies in all respects with the pertinent 
provisions of Title I of said Act and that the requirements of clauses 
(1) and (2) of subsection (a) of section 3 of the said Act have been 
met: 

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

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dminis t rat or. 

The White House, 

March 17, 1931 

47136° 425-102 34 (221) 



LETTER OF TRANSMITTAL 



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 
Bowling and Billiard Operating Trade as proposed by the Bowling 
Proprietors Association of America and the National Billiard 
Association of America. 

The public hearing was conducted in Washington on December 12, 
1933. Every person who requested an appearance was freely heard 
in accordance with statutory and regulatory requirements. 

The Bowling Proprietors Association of America claims that the 
members of the Trade affiliated with their Association represent 80% 
of the dollar volume of the business in the Bowling Operating Trade. 
The National Billiard Association of America claims that the mem- 
bers affiliated with their Association represent 75% of the total capi- 
tal invested in the Billiard Operating Trade. 

It was mutually agreed upon to have a Code containing provisions 
that would apply to both Trades. Such action was prompted when 
it was brought to the attention of the Administrator that both 
Trades- namely, the Billiard Operating Trade and the Bowling 
Operating Trade, had problems in common. 

ECONOMIC AND STATISTICAL MATERIAL 

For the 1928-1929 season, the sales volume amounted to over 
H120.000.O00 and the estimated employment in 1929 was 160,000 
persons. The volume of sales for the 1932-1933 season was esti- 
mated to be slightly over £57,000,000 and the employment for the 
1932-1933 season was estimated at 136,000 persons. The representa- 
tives of the Trade claim that the employment figures will be in- 
creased by 33-^% when the Code goes into effect. Coupled with in- 
creased employment within the Trade, there will also be an increased 
purchasing power for the individual employee under the Code. 

RESUME OF CODE PROVISIONS 

The Code establishes for office and clerical employees a forty (40) 
hour work week and a further proviso to the effect that such an 
employee shall not work more than eight (8) hours in any twenty- 
four (21) hour period while all other employees are limited to a 
fifty-two (52) hour work week. 

The minimum rate of pay for a regular employee for a fiftv-two 
(52) hour work week is $20.00, $17.50, $14.50, and $12.00, according 
to what classification as to population of the city 7 in which the em- 

($22) 



223 

ployee works. A porter, watchman or ball-rack boy receives a mini- 
mum rate of pay for a fifty-two (52) hour work week of $15.00, 
$14.50, $12.00, and $11.00, according to the same classification as men- 
tioned for the regular employee. The Code provides for a minimum 
to the pin setter and an appreciable increase in his commissions per 
line set up by him. The Trade representatives claim that the provi- 
sion will increase the compensation received by a pin setter by 50% 
over and above what he received for the 1932-1933 season. 

Such provisions will require a more than substantial contribution 
toward national recovery from part of the Trade. 

FINDINGS 

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

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign com- 
merce which tend to diminish the amount thereof and will provide 
for the general welfare by promoting the organization of industry 
for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practice, by promoting the fullest possible 
utilization of the present production 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) The Code complies in all respects with the pertinent provi- 
sions 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 associations are 
trade associations truly representative of the aforesaid Trade; and 
that the said associations impose no inequitable restrictions on ad- 
mission to membership therein. 

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

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

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

For these reasons, I recommend approval of this Code. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
March 14, 1934. 



CODE OF FAIR COMPETITION FOR THE BOWLING AND 
BILLIARD OPERATING TRADE 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act the following provisions are established as a Code of 
Fair Competition for the Bowling and Billiard Operating 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 ; * Bowling and Billiard Trade " (hereinafter called M the 
trade ") includes the furnishing for a consideration of facilities and 
equipment for bowling and billiards. 

The term " employee " as used heroin includes anyone engaged in 
the trade in any capacity receiving compensation for his services, ir- 
respective of the nature or method of payment of such compensation. 

The terms " employer " and " operator " as used herein include 
anyone by whom any such employee is compensated or employed. 

The term " member of the Trade r ' includes anyone engaged in the 
trade as above defined, either as an employee or on his own behalf. 

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

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

Article III — Hours 

1. No office or clerical employee shall be permited to work in excess 
of forty (40) hours in any one week or eight (8) hours in any 
twenty-four (24) hour period. 

2. No other employee shall be permitted to work in excess of fifty- 
two (52) hours in any one week, or nine (9) hours in any twenty-four 
(24) hour period. 

3. The above limitations shall not apply to an employee engaged 
in a managerial or executive capacity who earns not less than thirty- 
five dollars ($35.00) per week. 

4. No employee shall be permitted to work more than twent}~-f our 
(24) days in any twenty-eight (28) day period. 

Article IV — Wages 

1. No porter, watchman, or ball-rack boy shall be paid at less than 
the rate of fifteen dollars ($15.00) per week in any city of over 
500,000 population or in the immediate trade area of such city ; nor 

(224) 



225 

less than fourteen dollars fifty cents ($14.50) per week in any city 
of between 250,000 and 500,000 population, or in the immediate trade 
area of such city; nor less than twelve dollars ($12.00) per week in 
any city of between 2,500 and 250,000 population, or in the immediate 
trade area of such city; nor less than eleven dollars ($11.00) per 
week in towns of less than 2,500 population. 

2. No pin setter shall be paid at less than the rate of twenty per- 
cent (20% ) of the price charged per line for all lines set up by him, 
and at no time shall receive less than four cents (40) per line for ten 
(10) pin bowling, nor less than three cents (30) per line for all 
" small ball games ", and in no case shall a pin setter who has com- 
menced his work receive less than thirty cents (300) even though the 
minimum pay, to be computed as provided hereinabove shall not 
have been earned. 

3. No part-time employee, engaged by the hour, shall be paid at 
less than the rate of forty cents (400) per hour. 

4. No other employee shall be paid at less than the rate of twenty 
dollars ($20.00) per week in any city of over 500,000 population, or 
in the immediate trade area of such city ; nor less than seventeen dol- 
lars fifty cents ($17.50) per week in any city of between 250,000 
and 500,000 population, or in the immediate trade area of such city ; 
nor less than fourteen dollars ($14.00) per week in any city between 
2,500 and 250,000 population, or in the immediate trade area of such 
city; nor less than twelve dollars ($12.00) per week in towns of less 
than 2,500 population. 

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

6. No employee whose full time weekly hours for the four weeks 
ended June 17, 1933, are reduced by the provisions of this Code by 
less than twenty percent (20% ) shall have his or her full time weekly 
earnings reduced. No employee whose full time weekly hours are 
reduced by the provisions of this Code, in excess of twenty percent 
(20%) shall have his or her said earnings reduced by more than 
fifty percent (50% ) of the amount calculated by multiplying the 
reduction in hours in excess of twenty percent (20% ) by the hourly 
rate. 

7. Tips or gratuities shall not be included in wages. 

Article V — General Labor Provisions 

1. Child Labor Provisions. — No person under sixteen (16) years 
of age shall be employed in the Trade. No person under eighteen 
(18) years of age shall be employed at operations or occupations 
which are hazardous in nature or detrimental to health. The Code 
Authority shall submit to the Administrator within sixty (60) days 
after the effective date of the Code, a list of such occupations. In 
any State an employer shall be deemed to have complied with this 
provision as to age if he shall have on file a certificate or permit 
duly issued by the Authority in such State empowered to issue em- 
ployment or age certificates or permits showing that the employee is 
of the required age. 



226 

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

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

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

3. State Laics. — Xo provisions in this Code shall supersede any 
State or Federal law which imposes more stringent requirements on 
employers as to age of employees, wages, hours of work, or as to 
safetj^, health, sanitary or general working conditions, or insurance, 
or fire protection than are imposed by this Code. 

4. Reclassification of Employees.— So employer shall reclassify 
employees or duties of occupations performed for the purpose of 
defeating the provisions of the Act or of this Code or engage in any 
other subterfuge. 

5. Standards for Safety end Health. — Every employer shall pro- 
vide for the safety and health of his employees at the place and 
during the hours of their employment. Standards for safety and 
health shall be submitted by the Code Authority to the Administrator 
within six months after the effective date of this Code. 

6. Posting. — Each employer shall post in conspicuous places acces- 
sible to employees full copies of Articles III, IV, and V, of this Code. 

Article VI — Administration 

1. Organization of Code Authority. — A Code Authority is hereby 
constituted to administer this Code. 

2. The Code Authority shall consist of eight (8) individuals or 
such other number as may be approved from time to time by the 
Administrator, to be selected as hereinafter set forth, four (4) of 
whom shall represent the bowling trade and four (4) of whom shall 
represent the billiard trade, and of such additional members without 
vote as the Administrator, in his discretion, may appoint, to repre- 
sent such groups or governmental agencies as he may designate, but 
one such appointee shall be nominated by the American Bowling 
Congress and instructed to safeguard the interests of consumers. 

Every member of the Trade who qualifies as provided in Section 5 
of this Article shall be entitled to one vote in the nomination and 
election of the members of the Code Authority. Arrangements for 
such nomination and election shall be made by the proponents of 
this Code within thirty (30) days of the effective date thereof or 
otherwise as the Administrator may require. The Code Committee 
of the Bowling Proprietors Association of America and the Na- 
tional Billiard Association of America shall act in this capacity 
in the interim. 



227 

3. Each trade or industrial association, directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its Articles of Association, 
By-Laws, regulations, and any amendments when made thereto, 
together with such other information as to membership, organiza- 
tion, and activities as the Administrator may deem 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 hear- 
ings as he may deem proper; and thereafter if he shall find that 
the Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an 
appropriate modification in the method of selection of the Code 
Authority. 

5. Members of the Trade shall be entitled to participate in and 
share the benefits of the activities of the Code Authority, to par- 
ticipate in the selection of the members thereof, and to use the 
N.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 by the Code Authority, sub- 
ject to review by the Administrator, on the basis of volume of busi- 
ness and/or such other factors as may be deemed equitable to be 
taken into consideration. 

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

7. Powers and Duties of Code Authority. — The Code Authority 
shall have, to the extent permitted by the Act, the following powers 
and duties in addition to those elsewhere provided in this Code. 

(a) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code, in accord- 
ance with the powers herein granted, and to submit the same to the 
Administrator for his approval, together with true copies of any 
amendments or additions when made thereto, minutes of meetings 
when held, and such other information as to its activities as the 
Administrator may deem necessary to effect the purpose of the Act. 

(b) To obtain from members of the Trade for use of the Code 
Authority, for the Administrator in the administration and enforce- 
ment of the Code, and for the information of the President, reports 
based on periods of one, two, or four weeks, or multiples thereof, as 
soon as the necessary readjustment within the Trade can be made 
and to give assistance to members of the Trade in improving meth- 
ods, or in prescribing a uniform system, of accounting and reporting. 
All individual reports shall be kept confidential as to members of 
the Trade and only general summaries thereof may be published. 



228 

(c) To receive complaints of violations of this Code, make investi- 
gations thereof, and bring to the attention of the Administrator, 
recommendations, and information relative to violations. 

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

(e) To 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, or by delegation of any 
of its powers to any administrative authority. 

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

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

(h) Local Administrative Boards. — The Code Authority shall 
appoint Local Administrative Boards within trading areas for the 
purpose of assisting in the administration of this Code within such 
trading areas. The Code Authority shall fix the boundaries of such 
trading areas. 

A Local Administrative Board composed of not less than three 
members and not more than seven members shall establish and pre- 
scribe, after due notice to every known member of the Trade and a 
public hearing of which representatives of consumers and others 
substantially affected, shall be notified, fair and reasonable minimum 
prices for the several services comprised within the definition of the 
Bowling and Billiard Trade. Establishments in any given trading 
area shall be classified according to location, volume of business 
and/or such other factors as may be deemed equitable to be taken into 
consideration, into at least two and not more than four groups and 
fair and reasonable minimum price differentials shall be determined 
for each such group, one of which must be comprised of institutions 
fostering the recreation of youth. Such minimum prices shall be 
sufficient to provide for carrying out the purposes of the Act, to en- 
able the Trade to maintain the payment of at least the minimum 
wages herein established and other wages properly based thereon, the 
furnishing of stable employment necessary to maintain the trade, 
and such other considerations as are reasonably pertinent thereto. 

Any minimum prices thus determined shall not be effective until 
approved by the Code Authority and the Administrator and then 
for a trial period of only ninety days. Prior to the expiration of 
the trial period, the Local Administrative Board shall render a report 
to the Code Authority on the operation of this provision and the 
desirability of its continuation, but continuation must be recom- 
mended by the Code Authority and approved by the Administrator 
in order to become effective. 



229 

Thereafter, changes in the minimum prices may be effected only by 
the procedure provided herein for their original establishment. 

(i) To initiate, consider, and make recommendations for the modi- 
fication or amendment of this Code. 

8. General Administrative Provision. — In addition to the informa- 
tion required to be submitted to the Code Authority, there shall be 
furnished to Government agencies such statistical information as 
the Administrator may deem necessarv for the purposes recited in 
Section 3 (a) of the Act. 

9. An appeal from any action by the Code Authority affecting the 
rights of any employer or employee in the Trade may be taken to the 
Administrator. 

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 tlu* public interest, the Administrator may require that 
such action be suspended to afford an opportunity for investigation 
of the merits of such action and further consideration by such Code 
Authority or agency pending final action, which shall not be effective 
unless the Administrator approves or unless he shall fail to disap- 
prove after 30 days' notice to him of intention to proceed with such 
action in its original or modified form. 

Article VII — Trade Practices 

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

1. The payment of any allowance, refund, rebate, commission, or 
credit, whether monetary or otherwise, extending a special service, 
privilege, or concession, directly or indirectly, to any individual or 
group for the purpose of securing league, club, tournament or open 
bowling and/or billiards, except as established pursuant to Article 
VI Section 7 (h). 

2. Misleading or deceiving customers with respect to the character, 
service, and conditions of any bowling and/or billiard establishments. 

3. Maliciously inducing or attempting to induce breach of an ex- 
isting contract between a competitor and his customer, or interfer- 
ing with or obstructing the performance of any such contractual duty 
or service by any such means. 

4. To sell any of the several services at less than the minimum 
prices as established by the Code Authority in Article VI. Section 
7 (h). 

Article VIII — Modification 

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

2. This Code, except as to provisions required by the Act, may be 
modified on the basis of experience or change in circumstances, such 



230 

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 monopo- 
lies or monopolistic practices or to eliminate, oppress, or discriminate 
against small enterprises. 

Article X — Price Increases 

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

Article XI — Effective Date 

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



Approved Code No. 346. 
Registry No. 1711-11. 



o 



Approved Code No. 347 
CODE OF FAIR COMPETITION 

FOR THE 

MACHINERY AND ALLIED PRODUCTS INDUSTRY 
As Approved on March 17, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Code of Fair Competition for the Machinery avd Allied Products 

Industry" 

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

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1933, and 
otherwise, do adopt and approve the report, recommendations, and 
findings of the Administrator, and do order that the said Code of 
Fair Competition be, and it is hereby approved, on condition that 
each of the trade associations representing the thirty-nine (39) sub- 
divisions of this Code shall amend its constitution, by-laws and/or 
articles of incorporation or association to the satisfaction of the 
Administrator within thirty (30) days after the effective date of this 
Code and that the code authority constituted under this Code ana 
the code authority under the Code of Fair Competition for the 
Automotive Parts and Equipment Industry study the definitions 
contained in the two codes referred to, and within sixty (60) days 

47135° 425-103 34 (231) 



232 

from the effective date of this Code recommend to the Administrator 
such changes in said definitions as will eliminate any overlapping 
therein. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dministrator. 

The White House, 

March 17, 193^ 



LETTEK OF TRANSMITTAL 

The President, 

The White House. 
Sir : This is a report on the Code of Fair Competition for the Ma- 
chinery and Allied Products Industry, and the hearing conducted 
thereon in the Rose Room of the Washington Hotel, Washington, 
D.C., on February 9, 1934, in accordance with the provisions of Title 
I of the National Industrial Recovery Act. Every person who filed 
a request for an appearance was freely heard in public and all statu- 
tory and regulatory requirements were complied with. 

GENERAL STATEMENT 

The heavy machinery industry has suffered more through the de- 
pression than almost any other industry and it is facing continuing 
problems. In view of this fact, a cross-section of this durable goods 
industry effected an organization to deal with these problems and 
to avail itself of the facilities of the National Recovery Administra- 
tion by submitting this proposed basic code for the Machinery and 
Allied Products Industry. 

The industry at present consists of 39 subdivisions. The trade as- 
sociations representing these 39 subdivisions are representative of 
approximately 88 per cent of the dollar volume of business coming 
within the definition of this industry. 

The code expressly provides that each subdivision may file an 
application for a supplemental code which shall be applicable solely 
to such subdivision and which shall not be inconsistent with any of 
the provisions of this basic code. It also expressly provides that 
any subdivision may withdraw from the basic code by a vote of the 
employers within such subdivision; that the supplemental code for 
such subdivision, together with such pertinent provisions of this basic 
code as shall be defined by such supplemental code shall then become 
the code for such former subdivision and its code authority shall 
perform all the functions with respect to such code. 

ECONOMIC EFFECT OF THE CODE 

Since the scope of this basic code is so broad, its economic effect 
can best be shown in the report- on the individual subdivisions when 
their supplemental codes are submitted for approval. 

RESUME OF CODE 

Article I — Purposes — sets forth the purposes of this code and pre- 
scribes the method by which any subdivision of the industry may ap- 
ply to the President for a code supplementary to this basic code. 

(233) 



234 

Article II — Definitions — specifically defines the 39 subdivisions 
of the industry and various general terms used in the code. 

Article III — Working Hours — provides that employees shall not be 
permitted to work in excess of 40 hours in any one week or eight hours 
in any one day, or more than six days in any seven day period, ex- 
cept that this shall not apply to executives, those employed in a 
supervisory or administrative capacity or their immediate assistants, 
and salaried technical men and field service engineers being paid at 
the rate of $35.00 or more per week, and traveling salesmen. Watch- 
men are to be permitted to work 56 hours per week. Power plant 
engineers and firemen shall be permitted to work not in excess of 45 
hours in any seven day period. 

The maximum hours shall not apply in the following cases, in 
which cases overtime is paid for at one and one-half times the regular 
rate: 

(1) Employees on emergency maintenance or emergency repair 
work involving breakdown or protection of life or property. 

(2) For six weeks in any 26 week period, during which period 
overtime shall not exceed eight hours in any one week. 

At least one and one-half times the regular rate shall be paid for 
all work performed on Sundays or legal holidays, except by watch- 
men, power plant engineers and firemen. 

Article IV — Wages — provides that employees engaged in plant 
operations shall be paid as follows: (1) in cities of more than 50,000 
population and their immediate vicinity, 40 cents per hour; (2) in 
cities of more than 10.000 but not more than 50,000 population and 
their immediate vicinity, which cities are not in the immediate vi- 
cinity of a city of more than 50.000 population. 38 cents per hour; (3) 
in cities of 10.000 population or less and their immediate vicinity, 
which cities are not in the immediate vicinity of a city of more than 
10,000 population, 36 cents per hour, except that employees engaged 
in plant operations in all localities in the states of Virginia, North 
Carolina, South Carolina, Georgia, Florida, Tennessee, Alabama, 
Mississippi, Arkansas. Louisiana, Texas and Oklahoma shall be paid 
not less than 32 cents per hour. 

When females do substantially the same work as males or replace 
males, they shall receive the same pay. However, no female em- 
ployee shall be paid less than 87y 2 per cent of the proper rate for the 
locality in which employed. 

Office boys and girls and apprentices shall be paid not less than 80 
per cent of the minimum wage. 

Employees other than those engaged in plant operations shall re- 
ceive not less than $15.00 per week. 

Article V — General Labor Provisions — includes the provisions of 
Section 7 (a) of the National Industrial Recovery Act, and provides 
that no person under 16 years of age shall be employed in the indus- 
try, nor any one under 18 years of age in operations or occupations 
hazardous in nature or detrimental to health. It also provides that 
employers shall post copies of the code in conspicuous places. 

Article VI — Administration — provides that in order to administer, 
supervise and facilitate the enforcement of the code, there shall be a 
basic code authority consisting of not less than 12 nor more than 15 
members elected by members of the industry, each employer having 



235 

one vote in such election. The Administrator may appoint not more 
than three members to serve without vote. 

This Article provides that voting on matters other than the election 
of the basic code authority shall be by each of the two following 
methods: (1) by one vote by each employer, and (2) vote weighted 
on the basis of one vote for each $100,000 of annual sales, each em- 
ployer to have at least one vote. 

Article VII — Additional Subdivisions — sets forth the procedure 
which additional groups of employers, who are truly representative 
of divisions of machinery production, hiay become aligned under this 
code and have their own supplemental codes as subdivisions of this 
industry. 

Article VIII — Modifications and Termination ; Article IX — With- 
drawal ; Article X — Monopolies ; Article XI — Effective Date. These 
Articles contain provisions regarding changes and modification of the 
code, the termination date of the code (June 16, 1935), the conditions 
under which the code authority of a subdivision may become the sole 
code authority of that subdivision, the avoidance of monopolistic, 
oppressive and discriminatory construction and application of the 
code, and a provision that the code shall become effective on the 
eleventh day after its approval by the President. 

FINDINGS 

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

I find that: 

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

(b) 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 restrictions 
on admission to membership therein. 

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



236 

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

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

For these reasons, therefore, I recommend that this Code be 
approved, on condition that each of the trade associations repre- 
senting the thirty-nine (39) subdivisions of this Code shall amend 
its constitution, by-laws and/or articles of incorporation or associ- 
ation to the satisfaction of the Administrator within thirty (30) 
days after the effective date of this Code and that the code authority 
consituted under this Code and the code authority under the Code 
of Fair Competition for the Automotive Parts and Equipment In- 
dustry study the definitions contained in the two codes referred to. 
and within sixty (60) days from the effective date of this Code rec- 
ommend to the Administrator such changes in said definitions as 
will eliminate any overlapping therein. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 

March 9, 1934 



CODE OF FAIR COMPETITION FOR THE MACHINERY 
AND ALLIED PRODUCTS INDUSTRY 

Article I — Purposes 

To effectuate the policy of Title I of the National Industrial 
Recovery Act the following provisions are established as a Code for 
the Machinery and Allied Products Industry, and shall be the stand- 
ard of fair competition for this Industry, and shall be binding on 
every employer therein. 

The employers composing each of the Subdivisions of the Indus- 
try as hereinafter defined in Article II, acting through their re- 
spective trade associations (member of applicant) or otherwise, may 
file an application for a Supplemental Code which shall be applicable 
solely to such Subdivision and which may deal with all subjects 
applicable solely to such Subdivision not provided for by this Code 
and not inconsistent with any provision of this Code. The Supple- 
mental Code of each Subdivision shall include by reference and 
make binding upon the Subdivision all the provisions of this Code. 
Upon approval by the President the provisions of such Supplemental 
Code shall be binding on such Subdivision and upon each employer 
therein. 

Article II — Definitions 

Applicant means the Machinery and Allied Products Institute. 

Machinery and allied products industry or the Industry consists 
of the following Subdivisions, each of which is defined in the follow- 
ing separate paragraphs of this Article: 

(1) Air -filter subdivision means the manufacture for sale of equip- 
ment used solely for the cleaning of air and other gases, and parts 
thereof except for use in aeroplanes, automobiles, trucks or tractors 
and includes all those engaged in cuch manufacture for sale. 

(2) Bakery equipment manufacturing subdivision means the man- 
ufacture for sale of bakery machinery, ovens, and general equipment 
and appliances, accessories thereto and parts thereof, and includes 
all those engaged in such manufacture for sale, excepting, however, 
those who are engaged in the manufacture of equipment, appliances 
and accessories and parts therefor coming within the definition of 
another industry as defined in an approved code for such other in- 
dustry and who are not otherwise employers within the scope of 
the definition of this Subdivision. 

(3) Beater & Jordan <& allied equipment subdivision means the 
manufacture for sale of beaters & jordans & allied equipment and 
parts thereof, and includes all those engaged in such manufacture 
for sale. 

(4) Caster and floor timck manufacturing subdivision means the 
manufacture for sale of casters of all descriptions, including furni- 

47135° 425-103 34 2 (237) 



238 

ture, metal bed, washing machine, hospital, truck casters, and miscel- 
laneous casters, and floor protective devices, commonly called glides, 
slides and rests; hand propelled floor trucks of all descriptions, 
trailers (other than highway trailers), barrel skids and parts of all 
the foregoing products, and all articles and devices kindred or inci- 
dent to the caster and/or floor truck business, and includes all those 
engaged in such manufacture for sale. 

(5) Cereal machinery subdivision means the engineering, design- 
ing, manufacturing and/or importing and assembling for sale of 
machinery including spare, repair and replacement parts thereof; 
this includes reduction, cleaning, roasting, drying, cooling, separat- 
ing, mixing and flaking machinery as used in the manufacture and 
processing of cereals, seeds and nuts and/or their by-products and 
includes supplies and/or equipment directly or indirectly incident 
thereto and also includes grinding and corrugating of mill rolls (ex- 
cluding machinery and/or equipment for extracting vegetable oils, 
hammer mills, machinery as sold for use on farms, machinery and/or 
equipment or parts therefor having a general application and use 
for purposes other than the uses hereinabove enumerated) and 
includes all persons so engaged. 

(6) Concrete mixer subdivision means the manufacture for sale 
of concrete mixers of the building mixer, paving mixer, truck mixer 
and agitator type, and parts thereof, and includes all those engaged 
in such manufacture for sale. 

(7) Contractors'' pump subdivision means the manufacture for 
sale of dewatering and pressure pumps of the following types: 
diaphragm, standard centrifugal up to 8" in size and self priming 
centrifugal up to 6" in size for dewatering purposes; plunger and 
piston type trench pumps; contractors' water supply pumps, and 
road pumps and parts thereof, intended for use by contractors in the 
construction industry, and includes all those engaged in such manu- 
facture for sale. 

(8) Conveyor and material preparation equipment manufacturing 
subdivision means the designing, manufacturing, and assembling for 
sale, and installing when required, of equipment (stationary or port- 
able), for handling, transporting and elevating mechanically, ma- 
terials and articles (either packaged or loose), and also equipment 
for cleaning, preparing and processing bulk materials while being 
mechanically handled (excepting, however, machinery and/or equip- 
ment wherein a conveyor or material preparation mechanism is an 
integral part thereof, and one or more processes or functions are 
performed within such machinery and/or equipment for the proc- 
essing of food products or seeds) . and includes all persons so engaged. 

In connection with the designing, manufacturing, assembling, and 
installing of such equipment, the Subdivision uses only the follow- 
ing mechanisms, or one or more of them : chains, belts and cables 
with or without drag scrapers; cleats, trolleys and buckets; gravity 
chutes; power driven and gravity rollers, wheels and balls; belt 
idlers; screw conveyors: screens and mechanical cleaning devices; 
and mechanisms and supports required for their operation. The 
Subdivision shall include the designing, manufacturing, assembling 
and installing of power driven and gravity rollers and wheels, belt 
idlers, screw conveyors, screens and mechanical cleaning devices; 



239 

provided that it shall not include the designing and/or manufactur- 
ing for sale of other mechanisms, although such mechanisms are 
used as parts of the equipment designed, manufactured and assem- 
bled by it for sale. 

(9) Diamond core drill manufacturing subdivision means the man- 
ufacture for sale of diamond core driFs, supplies, fittings, equipment, 
and parts thereof, and includes all those engaged in such manufac- 
ture for sale. 

(10) Diesel engine manufacturing subdivision means the manu- 
facture for sale of Diesel engines and/or parts thereof, except Diesel 
engines used (1) in, and for the propulsion of, aeroplanes, auto- 
mobiles, trucks or tractors, and (2) in, and for the operation of, 
portable air compressors, and includes all those engaged in such 
manufacture for sale. 

(11) Envelope machine manufacturing subdivision means the man- 
ufacture for sale of machinery and/or parts thereof for use in 
the manufacture and/or production of envelopes of all kinds, in- 
cluding the erecting, designing, servicing, maintenance, and repair 
of such machinery and/or parts thereof, and includes all those en- 
gaged in such manufacture for sale. 

(12) Hair clipper manufactimng subdivision means the manu- 
facture for sale of hand or electrically or other power-operated hair 
clippers for human or animal use, products directly or indirectly 
incident thereto, appliances and parts thereof, and includes all those 
engaged in such manufacture for sale. 

(13) Hoist builders subdivision means the design, manufacture, 
contracting for and/or subletting the manufacturing for the sale 
of hoists operated by electricity, gas, oil, air or steam, for hoisting 
or hauling materials or men and for all industrial uses in which such 
type of hoists, commonly known as mine hoists are applicable, in- 
cluding spare, repair and replacement parts thereof, and includes 
all those so engaged ; provided that the Subdivision shall not include 
those types of hoists, including spare, repair or replacement parts 
thereof, commonly known as contractors hoists, slusher hoists, direct 
lift hoists, simple cylinder hoists, monorail hoists, trolley hoists, 
body and dump truck hoists. 

(14) Hoisting engine manufacturing subdivision means the manu- 
facture for sale of power-operated hoisting or winding engines such 
as are used in construction work, sand and gravel operations, logging, 
and dredging, and special modifications thereof, including accessory 
equipment used therewith such as derricks, whirlers, and cableways, 
and spare, repair and replacement parts thereof, but not including 
the type commonly known as mine hoists, and includes all those 
engaged in such manufacture for sale. 

(15) Hydraulic machinery subdivision means the manufacture for 
sale, erecting, and selling of hydraulic machinery of all kinds and 
parts thereof, whether using water or any other liquid, including 
specifically but without in any way limiting the generality of the 
foregoing, hydraulic machines and presses, hydraulic testing ma- 
chines (made to special order), hydraulic accumulators, and also 
other accessories such as pumps, valves, and fittings and parts thereof 
incident to the operation of such hydraulic equipment. It excludes, 
however, prime movers such as turbines, water wheels, and their 



240 

accessory equipment, hydraulic brakes and/or pails therefor, hy- 
draulic shock absorbers, hydraulic bumpers and hydraulic dump 
trucks. It includes all those engaged in such manufacture for sale. 

(16) Jack manufacturing subdivision means the manufacture for 
sale of jacks and parts thereof used generally in the construction, 
railroad, mining, and general industrial field, exclusive of automo- 
tive jacks, and includes all those engaged in such manufacture for 
sale. 

(17) Kiln, cooler, and dryer manufacturing subdivision means the 
design, manufacture, contracting for or subletting the manufacturing 
for the sale of kilns, coolers, and dryers and accessory equipment 
for the manufacture of cement and lime, and for use in all mineral, 
metallurgical, and chemical processes, including spare, repair and 
replacement parts thereof, and includes all those so engaged. 

(18) Locomotive manufacturing subdivision means the building 
and/or manufacturing for sale and selling of locomotives of more 
than 600 horsepower capacity per locomotive used for tractive power 
on railroads and/or finished and semi-finished component, repair 
and replacement parts thereof and/or therefor, by builders of loco- 
motive and/or their affiliated companies; provided, however, that 
locomotives propelled by electric motors (including finished and/or 
semi-finished component, repair and replacement parts thereof 
and/or therefor and used therein) may be built and/or manufac- 
tured for sale and sold either by members of this Subdivision under 
this Code or by members of the Electrical Manufacturing Industry 
under its Code. Locomotives of more than 600 horsepower capacity 
but not to exceed 1,200 horsepower capacity and/or finished and 
semi-finished component, repair and replacement parts thereof 
and/or therefor may be built and/or manufactured for sale and sold 
by the Small Locomotive Subdivision under this Code. " Horse- 
power " means the figure arrived at by multiplying tractive effort 
(taken at that speed at which the maximum horsepower will be pro- 
duced) by the speed in miles per hour and dividing that result by 
375. The term " affiliated company " as used in this paragraph means 
a company whose relations to another company are such that either 
one has, directly or indirectly, a substantial stock interest in the 
other, or that a third company has, directly, or indirectly a sub- 
stantial stock interest in both ; provided, however, that in the event 
of a dispute or disagreement regarding the term " affiliated com- 
pany " as used herein, such dispute or disagreement shall be referred 
for decision to an arbitration committee, elected or appointed by a 
fair method of selection. Should any member of this Subdivision 
desire to appeal from the decision of said arbitration committee, such 
member may appeal direct to the Administrator, whose decision in 
the matter shall be final. 

(19) Mechanical lubri-cator subdivision means the manufacture or 
assembly for sale of power-driven force-feed lubricators for cylinders 
and bearings of Diesel engines and other internal combustion en- 
gines; for cylinders and bearings of steam engines; for cylinders and 
bearings of all types of compressors ; for automatic lubrication of all 
types of machinery requiring lubricants to be fed to moving parts; 
and parts thereof, and includes all those engaged in such manufac- 



241 

ture or assembly for sale. It does not include force-feed lubricators 
for steam railway locomotives or pressure oiling systems for auto- 
motive vehicles or force-feed lubricators when manufactured as part 
of another product by the manufacturers of such other product. Em- 
ployers otherwise engaged in the Farm Equipment Industry may 
manufacture for sale and sell mechanical lubricators as used or sold 
in connection with trucks and tractors, under the provisions of the 
Code of the Farm Equipment Industry and not under the provi- 
sions of this Code. 

(20) Oil field pumping engine manufacturing subdivision means 
the manufacture for sale of internal combustion engines of the slow- 
speed, stationary, oil-well pumping type, using natural gas or oil 
for fuel, accessories thereto and parts thereof, and includes all those 
engaged in such manufacture for sale. 

(21) Power transmission subdivision means the manufacture for 
the sale of flat belt pulleys, rope sheaves, couplings, collars, hangers, 
pillow blocks, journal boxes, clutches and other incidental machinery 
and appliances used in the transmission of power, but exclusive of 
shafting, multiple V-belt drives, belting, cut gears, cut tooth and 
cast tooth sprockets, chains, speed reducers, and automotive parts, 
and parts thereof, and includes all those engaged in such manufac- 
ture for sale. Employers otherwise engaged in the Farm Equipment 
Industry may manufacture for sale and sell power takeoff equipment 
used in connection with tractors and gear reduction devices for 
power takeoff for farming machinery, under the provisions of the 
Code of the Farm Equipment Industry and not under the provisions 
of this Code. 

(22) Pulverizing machinery and equipment subdivision means the 
design, manufacture, contracting for or subletting the manufactur- 
ing for the sale of ball, tube, roller and attrition types of pulverizing 
machines, air separators or classifiers of dry materials, and auxiliary 
equipment including spare, repair, and replacement parts thereof, 
and includes all fhose so engaged; provided that the Subdivision 
shall not include fuel-pulverizing equipment or spare, repair or 
replacement parts thereof. Employers otherwise engaged in the 
Farm Equipment Industry may manufacture for sale and sell ham- 
mer mills, feed grinders and similar equipment for use on farms, 
under the Code of the Farm Equipment Industry and not under 
the provisions of this Code. 

(23) Railway and industrial spring manufacturing subdivision 
means and includes only the business of producing and selling hot 
formed helical, elliptical, and special springs and/or pressed steel 
journal box lids and/or pressed steel spring plates. 

(24) Railway appliance manufacturing subdivision means the 
manufacture for sale of railway hand cars, push cars, velocipede 
cars, motor cars and special appliances thereof, locomotive water 
cranes and parts thereof, and includes all those engaged in such 
manufacture for sale. 

(25) Reduction machinery subdivision means the manufacture for 
sale of centrifugal impact crushers, generally known as hammermills 
and ring mills; disintegrators of the bar cage type; gravity impact 
crushers, generally known as Bradford breakers and cleaners ; rotary 



242 

pot crushers; pick and needle breakers; single and double roll 
crushers, for primary, secondary and fine reductions, and auxiliary 
equipment, including rotary drum type dry mixers (excluding con- 
crete mixers, and mixers for cereals, seeds and nuts) and including 
spare, repair and replacement parts thereof, and includes all those 
engaged in such manufacture for sale. Employers otherwise engaged 
in the Farm Equipment Industry may manufacture for sale and sell 
reduction machinery for processing grains and fodder on the farm 
under the provisions of the Code of the Farm Equipment Industry 
and not under the provisions of this Code. 

(26) Refrigerating machinery subdivision means the engineering, 
design, and production of commercial and industrial ice making 
and refrigerating machinery and equipment incidental thereto. It 
is expressly stated for the purposes of this Code that it is to apply 
to the engineering, design, manauf acture, and sale, as well as erection 
and/or installation of such machinery and equipment incidental 
thereto. Any work or process incidental to and carried on by an 
employer at his plant or elsewhere as a part of the manufacture 
of any product of the Subdivision shall be governed by the provisions 
of this Code rather than of any other Code. 

(27) Rock and ore crusher subdivision means the design, manu- 
facture, contracting for or subletting the manufacturing for the sale 
of rock, gravel, and ore crushers for coarse and secondary reduction 
and includes spare, repair and replacement parts thereof, and in- 
cludes screening and washing machinery, the sale (but not the man- 
ufacture) of conveying machinery, and any other accessory equip- 
ment and/or materials when sold with and incidental to crushing 
equipment, and includes all those so engaged; provided that the 
Subdivision shall not include crushers and associated machinery 
when mounted in portable units — also excluding hammermills. 

(28) Roller and silent chain subdivision means the manufacture 
for sale of sprocket chain of steel, or other metals excepting malle- 
able iron, of the types generally known as inverted tooth or silent 
chains, finished roller and rollerless-bushing chains (but not those 
commonly known as semi-finished chains) , block chains having either 
cold drawn or laminated center blocks, and parts thereof, and such 
sprockets therefor as are manufactured by the manufacturers of 
said chains, and includes all those engaged in such manufacture for 
sale. 

(29) Rolling mill machinery and equipment subdivision means the 
manufacture for sale of rolling mill machinery and equipment, in- 
cluding rolls (except hardened steel forged rolls unless made and 
sold as a part of such rolling mill machinery and equipment) and 
including roll stands, tables, shears, roll lathes, tube mill machinery 
and all other auxiliary equij)ment and parts thereof used in the 
rolling and processing of ferrous and non-ferrous metals to pro- 
duce commercially recognized rolling-mill products, and includes all 
those engaged in such manufacture for sale. 

(30) Sawmill machinery subdivision means the manufacture for 
sale of machinery and parts thereof for use in sawmills for convert- 
ing saw logs or timbers into lumber and other timber products, and 
includes all those engaged in the manufacture of such machinery for 
sale. 



243 

(31) Small locomotive subdivision means the manufacture for 
sale and selling of locomotives of 600 horsepower or less, and/or 
parts thereof, and includes all those engaged in such manufacture for 
sale; locomotives of more than 600 horsepower, but not to exceed 1200 
horsepower capacity and/or parts thereof may be manufactured for 
sale and sold by either this Subdivision or the Locomotive Manu- 
facturing Subdivision under this Code ; provided, however, that such 
locomotives propelled by electric motors including parts thereof for 
use therein, may be manufactured for sale and sold either by mem- 
bers of this Subdivision under this Code or by members of the Elec- 
trical Manufacturing Industry under its Code. " Horsepower " 
means the figure arrived at by multiplying tractive effort (taken at 
that speed at which the maximum horsepower will be produced) by 
the speed in miles per hour and dividing that result by 375. 

(32) Sprocket chain subdivision means the manufacture for sale 
of sprocket chains of malleable iron, steel and other metals for con- 
veying, elevating, and the transmission of power of the types gen- 
erally known as roller chains, rollerless bushing chains, block chains, 
malleable and other cast detachable pintle and roller chains, balance 
and leaf chains, bar link chains, steel detachable link chains, combi- 
nation cast and bar link chains, drop forged and rivetless chains, 
draw bench and haul-up chains, taint or gate and bridge chains, and 
parts for such chains and sprockets for same, and includes all those 
engaged in such manufacture for sale ; except that there shall not be 
included therein the manufacture for sale of chains for hand hoists 
and those generally known as round link or coil chains, nor machine 
finished chains, as defined in the definition of the Roller and Silent 
Chain Subdivision. The manufacture of sprocket chain by farm 
equipment manufacturers is excluded from the manufacturing pro- 
visions of this Code but the marketing and trade provisions shall 
apply to all sprocket chain sold by such farm implement manufac- 
turers for all purposes other than for use on farm implements. 

(33) Steam engine manufacturing subdivision means the design, 
manufacture, contracting for or subletting the manufacturing for the 
sale of reciprocating steam engines, including spare, repair and re- 
placement parts thereof for land and marine use, and includes all 
those so engaged; provided that the Subdivision shall not include 
locomotive and automotive types or spare, repair and replacement 
parts thereof. 

(34) Steel tire nvanuf acturing subdivision means and includes 
only the business of manufacturing and selling locomotive and rail- 
road car wheel tires, other annular weldless rolled steel sections, and 
steel tired wheels for railroad, railway and/or industrial use. 

(35) Water meter manufacturing subdivision means the manu- 
facture for sale of water meters and parts thereof, and includes all 
those engaged in such manufacture for sale. 

(36) Water powder equipment subdivision means the business of 
manufacturing for sale, selling, erecting and/or designing equipment 
or machinery as enumerated below. 

(Group 1) Hydraulic turbines, water wheels, impulse wheels, gov- 
ernors, governor pumping systems including pressure tanks and 
dump tanks, flume manholes, relief valves, energy absorbers, free 
discharge valves, drain valves, special and automatic valves; also 



244 

cast iron or cast steel or steel plate or structural steel (riveted or 
welded) spiral casings, pressure casings, speed rings, turbine wicket 
gates, head covers, curb plates, throat rings, bearings, bearing hous- 
ings, pit liners, draft tubes and liners, short steel penstocks and in- 
take pipes not exceeding thirty-five (35) feet in length; all of the 
above for water power plants. 

(Group 2) Turbine shut-off valves, bypass valves, butterfly valves, 
large and special gate valves, needle valves, cylinder valves, conical 
valves and spherical valves for water power plants. This Group 2 
shall include only such valves and fittings, including parts therefor 
or for their servicing, as are made by an employer in this Subdivi- 
sion as a part of the products thereof for water power plants only, or 
as a separate assembly peculiar to such products. 

(Group 3) Head gates, crest gates, sluice gates (except such sluice 
gates of cast metal construction, in no event of more than ten (10) 
feet diameter opening, as are normally produced and sold by mem- 
bers of the Valve and Fittings Manufacturing Industry), bypass 
gates, trash racks, rack rakes, lock gates, bear trap gates and mod- 
ifications thereof, roller gates, roller sector gates, drum gates, ver- 
tical lift gates, vertical lift sector gates, taintor gates, taintor gate 
valves, cylindrical valves, filler gates, automatic gates, flashboards 
manually or automatically operated, of cast and/or fabricated steel 
plate construction together with hoists, operating machinery and 
automatic control equipment therefor. (Structural steel plates, 
shapes and bars included in the products of this Group 3 may be 
sold, fabricated and erected under the code of the Structural Steel 
and Iron Fabricating Industry, or the code of the Steel Plate Fab- 
ricating Industry, by employers in either of such industries who are 
not engaged in the production of other products in this Group 3.) 

And other mechanical, plate and structural equipment including 
accessories and parts thereof applicable to groups 1 and 2 for water 
power plants and applicable to group 3 for water power plants, navi- 
gation dams, impounding dams, irrigation works, flood control 
works, water supply works including accessories, spare parts, repairs, 
replacement parts and parts thereof for all other water power and 
control purposes excluding Gantry crane hoists. 

(37) Water softener arid filter subdivision means the manufacture 
or assembty for sale of zeolite water softeners, lime-soda water 
softeners, water filters, and products allied thereto including the zeo- 
lite used therein and parts thereof, and includes all those engaged in 
such manufacture or assembly for sale. 

(38) Wire machinery subdivision means the manufacture for sale 
of machinery for drawing wire and rod and the fabrication of 
wire and rod products. This includes wire and rod drawing ma- 
chinery and accessories, shaping and flattening mills, machinery for 
stranding, cabling, etc., cutting-off, pointing, straightening, armor- 
ing, bending, forming, cold upsetting, cold heading, etc., and in gen- 
eral all machinery used in the working, processing or finishing of 
articles made from wire or rod in its raw state, and parts thereof, 
and includes all those engaged in such manufacture for sale. Em- 
ployers not otherwise engaged in this Subdivision may manufacture 
for sale and sell machinery for cold upsetting and heading, and fin- 
ishing machines for the product thereof, under the provisions of the 



245 

Code of another Industry and not under the provisions of this 
Code. 

(39) "Woodworking machinery subdivision means the manufacture 
for sale of woodworking machinery (exclusive of sawmill machin- 
ery), accessories and parts thereof, and includes all those engaged in 
such manufacture for sale. 

And also such other and additional Subdivisions as shall hereafter 
be established within the provisions of this Code as provided in 
Article VII. 

Except as provided in the definitions of the Locomotive Manufac- 
turing Subdivision and the Small Locomotive Subdivision, the fore- 
going definitions shall not permit the manufacture for sale under 
this Code of electrical products included within the scope of the 
Electrical Manufacturing Industry as defined in the Code of Fair 
Competition for said Industry, except where such electrical products 
are sold as a part of the products of any Subdivision hereunder and 
not sold as separate electrical products in competition with similar 
products included within the scope of the Electrical Manufacturing 
Industry as defined in the Code of Fair Competition for said Indus- 
try; provided, however, that any employer hereunder may manufac- 
ture and sell under this Code any spare and/or replacement parts of 
any such electrical products for use with products defined hereunder 
which were originally manufactured and sold by him. 

When carried on at the point of installation, the work of installing, 
erecting, rebuilding, and/or servicing of the products of any Subdivi- 
sion hereinbefore defined, (including attachments, accessories and/or 
replacement and repair parts therefor included within the defini- 
tion of such Subdivision) shall be subject to the provisions of this 
Code only when performed by the employer hereunder selling such 
products or by a company affiliated therewith. 

Person means a natural person, a corporation, a partnership, an 
association, a trust, a trustee, a trustee in bankruptcy, a receiver, or 
other entity. 

Employer means any person engaged in the Industry either on 
his own behalf or as an employer of labor. 

Employee means anyone who is employed in the Industry by any 
such employer. 

Apprentice means an employee who is regularly engaged in learn- 
ing a trade under a course of training designed to advance him 
systematically in the various operations of such trade to become a 
competently skilled mechanic. 

The act means Title I of the National Industrial Recovery Act. 

The President means the President of the United States. 

Administrator means the Administrator for Industrial Recovery. 

Basic Code Authority means the Code Authority for the Machin- 
ery and Allied Products Industry as provided for in Article VI 
hereof. 

Code Authority means the Code Authority of each of the vari- 
ous Subdivisions of the Industry as defined hereinabove in this 
Article II. 

Group Code Authority means the Code Authority of any group 
or product classification within any Subdivision, constituted under 
any Supplemental Code. 



246 
Article III — Working Hours 

Section 1. Maximum, Hours. — No employee shall be permitted to 
work in excess of forty (40) hours in any one week or eight (8) 
hours in any twenty-four (24) hour period or more than six (6) 
days in any seven (7) da}' period, except as otherwise expressly 
provided in this Article III. 

Section 2. Exceptions as to Hoars. — (a) The provisions of this 
Article III shall not apply to executives, those employed in a super- 
visory or administrative capacity or their immediate assistants, and 
salaried technical men and field service engineers, being paid at the 
rate of Thirty-five Dollars ($35.00) or more per week, and traveling 
salesmen. 

(b) Watchmen. — Watchmen shall be permitted to work not in 
excess of fifty-six (56) hours per week. 

(c) Power Plant Engineers and Firemen. — Power Plant engineers 
and firemen shall be permitted to work not in excess of forty-five (45) 
hours in any seven (7) day period, recognizing the principle of one 
day's rest in seven. 

Section 3. Overtime Provisions. — (a) Emergency Overtime. — The 
maximum hours fixed in Section 1 hereof shall not apply to any 
employee on emergency maintenance or emergency repair work 
involving breakdowns or protection of life or property, or to any 
specially skilled employee in emergencies occasioned by the necessity 
for the services of such employee which cannot be cared for by the 
employment of additional men. In any such case at least one and 
one-half times the regular rate shall be paid to employees for time 
worked in excess of the maximum provided in Section 1 hereof. 

(b) Ordinary Overtime. — The maximum hours fixed in Section 1 
hereof shall not apply for (6) weeks in any twenty-six (26) weeks 
period during which overtime shall not exceed eight (8) hours in any 
one week. In any such case at least one and one-half (1%) times 
the regular rate shall be paid to each employee for time worked in 
excess of eight (8) hours in any twenty-four (24) hour period or in 
excess of forty (40) hours in any seven (7) clay period. 

(c) Sunday and Legal Holiday Work. — At least one and one-half 
(1%) times the regular rate shall be paid for all work performed 
on Sundays or legal holidays, except by watchmen, power plant 
engineers and firemen. 

(d) Reporting Overtime. — All overtime allowances shall be re- 
ported to the Basic Code Authority and made available to the 
Administrator in such detail as may be required by Basic Code 
Authority. 

Section 4. Employment hy Several Employers. — Xo employer shall 
knowingly permit any employee to work for any tin 
totaled with that already performed for another employer or employ- 
ers, exceeds the maximum permitted herein. 

Article IV — Wages 

Section 1. (a) Except as hereinafter provided, no employee 
engaged in plant operations shall be paid less than at the following 
hourly rates, viz : 



247 

Where employed in cities of more than 50,000 population and 
immediate vicinity, forty cents (400) per hour. 

Where employed in cities of more than 10,000 but not more than 
50,000 population and immediate vicinity, which cities are not in 
the immediate vicinity of a city of more than 50,000 population, 
thirty-eight (380) per hour. 

Where employed in cities of 10,000 population or less and immedi- 
ate vicinity, which cities are not in the immediate vicinity of a city 
of more than 10,000 population, thirty-six cents (360) per hour. 

Population figures shall be taken as reported by the Government 
census of 1930. 

(b) Female employees engaged at any plant in substantially the 
same work as male employees at such plant shall receive the same 
rate of pay as such male employees, and where they displace such 
male employees they shall receive the same rate of pay as the male 
employees they replace. 

Female employees engaged in plant operations shall be paid at 
a rate of not less than eighty-seven and one-half (87%) per cent of 
the proper rate for the locality in which employed, as hereinabove 
specified in this Section. 

(c) The minimum rate of pay per hour for all employees engaged 
in plant operations in all locations in the States of Virginia, North 
Carolina, South Carolina, Georgia, Florida, Tennessee, Alabama, 
Mississippi, Arkansas, Louisiana, Texas and Oklahoma shall be not 
less than thirty-two cents (320) per hour. 

Section 2. (a) The minimum wage that shall be paid by an 
employer to any employee other than those engaged in plant opera- 
tions shall be not less than at the rate of $15.00 per week, except as 
herein provided. 

(b) Office boys and girls may be paid not less than at the rate 
of eighty (80) percent of such minimum wage, but the total number 
of such office boys and girls employed by any one employer at such 
reduced rate (in no event less than two) shall not exceed five (5) 
percent of the total number of office employees of such employer 
covered by the provisions of this Section 2. 

Section 3. Apprentices shall be paid a starting rate of not less 
than thirty (30) per cent of the rate paid to a competently skilled 
mechanic in the trade in which the apprentice is being trained and 
prevailing in the shop where the apprentice is employed, provided, 
however, that the starting rate paid to any apprentice shall not be 
less than twenty-four cents (240) per hour. 

Wages paid to apprentices shall be advanced at intervals in meas- 
ured amounts so that the rate for the last period of apprenticeship 
shall not be less than eighty (80) per cent of the rate paid to a com- 
petently skilled mechanic in the particular trade in the shop where 
the apprentice is employed. 

If an apprentice is paid during hours in which he is solely obtain- 
ing school training, or if an apprentice is paid a bonus at the end 
of his apprenticeship, such payments may be credited in computing 
his compensation. 

At no time shall a new apprentice be admitted to apprenticeship 
by any employer when such action will bring the total number of 



248 

such apprentices so employed to a ratio of more than one apprentice 
to five competent^ skilled mechanics in the trade employed by such 
employer in the particular trade in question. 

All apprentice indentures or written contracts shall be submitted 
to the Basic Code Authority for approval and shall be made avail- 
able to the Administrator. 

Section 4. This Article IV establishes a minimum rate of pay 
regardless of whether an employee is compensated on a time rate, 
piece work or other basis. 

Section 5. A person, vocationally handicapped, whose earning 
capacity is limited because of age or physical or mental handicap 
may be employed on suitable work at a wage rate below the minimum 
established by this Article IV if the employer or the employee ob- 
tains 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. 
If such person is employed by any employer at the time request for 
a certificate is made such employee may continue to be employed by 
the same employer under the conditions stipulated in the application 
for such certificate during the period of procurement of such cer- 
tificate or rejection of such application. 

Section 6. With a view that there shall be equitable adjustment 
of rates above the minimum, not later than thirty (30) days after 
the effective date, each employer in the Industry shall report to the 
Administrator through the Basic Code Authority, the action taken 
by such employer since June 16, 1933, in adjusting or not adjusting 
the wage rates of all hourly employees covered by Section 1 and of 
the empkyyees covered by Section 2 hereof receiving more than the 
minimum rate as therein provided but less than Thirty-Five Dollars 
($35.00) per week of regular work period. 

In no case shall rates of pay, computed on an hourly basis, be low- 
ered in making the above adjustments. 

Article V — General Labor Provisions 

Section 1. As required by Section 7 (a) of Title 1 of the Act, it 
is hereby provided: 

"(1) That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or in 
self-organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection; (2) that no 
employee and no one seeking employment shall be required as a 
condition of employment to join any company union or to refrain 
from joining, organizing, or assisting a labor organization of his 
own choosing; and (3) that employers shall comply with the maxi- 
mum hours of labor, minimum rates of pay, and other conditions of 
employment, approved or prescribed by the President." 

Section 2. No person under sixteen (16) years of asre shall be 
employed in the Industry, nor any one under eighteen (18) years of 
age at operations or occupations hazardous in nature or detrimental 



249 

to health, as may be defined by United States Department of Labor, 
or State law. 

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

Section 4. Employers shall not reclassify employees or the work 
of employees so as to defeat the purposes of the Act. 

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

Article VI — Administration x 

(a) A Basic Code Authority is hereby constituted to administer, 
supervise and facilitate the enforcement of this Code. 

Basic Code Authority shall effect its own organization. It shall 
elect its officers (who need not be members of Basic Code Authority 
or employers in the Industry) by a vote of its members, and may 
employ such personnel as it deems necessary. It may appoint such 
committees (consisting of members and/or non-members) as it deems 
desirable, and may delegate to such committees such authority as it 
deems necessary. It shall have no authority or activity not related 
to the provisions of this Code or of any approved Supplemental 
Code, 

(b) During the period not to exceed sixty (60) days following the 
effective date of this Code, the Executive Committee of the Applicant 
shall constitute a temporary Basic Code Authority. This Committee 
shall consist of not less than nine (9) nor more than fifteen (15) 
members and the Administrator may, in his discretion, appoint not 
more than three (3) additional members (without vote and without 
expense to the Industry). 

(c) Within said sixty (60) days' period the temporary Basic Code 
Authority shall call a meeting, to which all known employers in the 
Industry shall be invited, at which meeting the following action 
shall taken : 

(1) Adoption of procedural rules and regulations for the election, 
organization, and operation of the permanent Basic Code Authority. 

(2) Election of permanent Basic Code Authority. 

The permanent Basic Code Authority shall consist of not less 
than twelve (12) nor more than fifteen (15) representatives of 
employers in the Industry entitled to participate as provided in 
Section (c) of this Article VI, twelve (12) of whom shall be elected 
at large and not more than three (3) additional may be elected by a 
vote of the employers of the Subdivisions not having a representative 
of an employer elected to Basic Code Authority by the vote at large. 
The Administrator, in his discretion, may appoint not more than 
three (3) additional members (without vote and without expense to 
the Industry). 

Each elected member of Basic Code Authority shall be an em- 
ployer or an executive officer or a partner in an employer entitled to 

1 See paragraph 2 of order approving this Code. 



250 

participate in the activities of the Industry, no two of whom shall be 
representatives of the same employer. 

(d) Action by employers in any Industry meeting for the election 
of Basic Code Authority shall be by vote of the employers entitled 
to vote as hereinafter provided in this Section who are present in 
person or by proxy duly executed and filed with Basic Code Au- 
thority, each such employer to have one vote only. Action by em- 
ployers in any Industry meeting for all other purposes including 
the adoption of procedural rules, action on Code revisions, addi- 
tions or supplements, or the transaction of any other business of the 
Industry under this Code, shall be by vote of the employers entitled 
to vote as hereinafter provided in this Section who are present in 
person or by proxy duly executed and filed with Basic Code Au- 
thority, cast concurrently in each of the two following methods : 

(1) By one vote of each employer. 

(2) By vote of employers weighted on the basis of one vote for 
each $100,000 of the annual average of sales billed f .o.b. plant by 
each employer for the preceding two (2) calendar years, as reported 
to Basic Code Authority, to be computed at the beginning of each 
calendar year and to apply throughout the then current year. Each 
employer shall be entitled to at least one such vote. 

Except as otherwise provided in this Code, any action taken at 
any meeting of employers shall be by a majority vote, cast and 
computed in each of the two methods hereinabove provided. 

Each employer shall pay to Basic Code Authority his pro rata 
share of the costs of preparing, submitting, and administering the 
Code, computed on the basis of the proportionate weighted vote 
provided for in Subsection (2) of this Section. Upon paying his 
pro rata share of such costs, each employer shall be entitled to vote 
on and share in all the benefits of Basic Code Authority. 

(e) With a view to keeping the President informed as to whether 
the Industry is taking appropriate steps to effectuate the declared 
policy of the Act, each employer shall prepare and file with such 
person or organization as Basic Code Authority may designate and 
at such times and in such manner as may by Basic Code Authority 
be prescribed (to be held and used subject to the limitations of this 
Article VI) statistics of plant capacity, volume of production, vol- 
ume of sales in units and dollars, orders received, unfilled orders, 
stocks on hand, inventories, both raw and finished, number of em- 
ployees, wage rates, employees earnings and hours of work, and such 
other related data or information as Basic Code Authority may from 
time to time require. 

In addition to information required to be submitted to Basic Code 
Authority, there shall be furnished to Government agencies such 
statistical information as the President may deem necessary for the 
purposes recited in Section 3 (a) of the Act. The records required 
for such purposes shall be created and maintained in such a way as 
to disclose accurately the information required from time to time by 
Government agencies under the provisions of this Section (e). 

(f ) Except as otherwise provided in the Act, all individual statis- 
tics, data and information of individual employers, filed with Basic 
Code Authority or a Code Authority or a Group Code Authority in 
accordance with the provisions of this Code or a Supplemental Code 



251 

shall be kept confidential; provided, however, that nothing herein 
shall prevent the publication of general summaries of such statistical 
data and information. 

The statistics, data and information relating to any one employer 
shall not be revealed to any other employer, or to anyone, except for 
the purpose of administering or facilitating the enforcement of the 
provisions of this Code. Basic Code Authority by its duly author- 
ized representatives (who shall not be an employer or in the employ 
of any employer affected by this Code) shall, to the extent per- 
mitted by the Act, have access to any and all statistics, data and 
information that may be furnished in accordance with the provisions 
of this Code. 

(g) A Code Authority is hereby constituted for each Subdivision 
to administer, supervise and facilitate the enforcement of this Basic 
Code in the manner and to the extent hereinafter provided in this 
Article, and of such Supplemental Code as may be submitted here- 
after by a Subdivision and approved by the Administrator. 

During the period not to exceed sixty (60) days following the 
effective date of this Code, the governing body of the trade associa- 
tion (member of the Applicant) representing the employers within 
the Subdivision, shall constitute a temporary Code Authority. The 
Administrator, in his discretion, may appoint one additional member 
(without vote and without expense to the industry). 

Within said sixty (60) day period each such temporary Code 
Authority shall call a meeting, to which all known members in the 
particular Subdivision concerned shall be invited, at which meeting 
the following action shall be taken : 

(1) Adoption of procedural rules and regulations for the election, 
organization and operation of permanent Code Authority. 

(2) Election of permanent Code Authority. 

Each permanent Code Authority shall consist of not less than 
three (3) nor more than nine (9) representatives of employers in 
the Subdivision. The Administrator in his discretion may appoint 
one additional member (without vote and without expense to the 
Subdivision). 

Each such Code Authority may adopt such rules for the conduct 
of the Code activities of the Subdivision as are not inconsistent with 
the provisions of this Code. 

Action by employers in any Subdivision meeting for the election 
of Code Authority shall be by vote of the employers entitled to vote 
as provided in Section (d) hereof, each such employer to have one 
vote only. Action by employers in any Subdivision meeting for the 
adoption of procedural rules, submission of a Supplemental Code 
or revisions or additions thereto, or the transaction of other business 
of the Subdivision under this Code, shall be by vote of the employers 
in such Subdivision who are entitled to vote thereat as provided in 
Section (d) hereof and are present in person or by proxy duly 
executed and filed with Code Authority of such Subdivision, cast and 
computed in the manner provided in Section (d) hereof for voting 
in the Industry, except that employers in any Subdivision may pre- 
scribe such other method of voting as they may determine upon with 
the approval of the Administrator. 



252 

The foregoing provisions of this Section (g) shall apply to any 
Subdivision only in the event and so long as there shall be no Sup- 
plemental Code for such Subdivision approved by the Administrator 
or in the event that such approved Supplemental Code shall fail 
to contain provisions for the creation and operation of a permanent 
Code Authority. 

(h) Each Code Authority shall through its duly authorized rep- 
resentatives (who shall not be an employer or in the employ of any 
employer in such Subdivision) receive copies of, or have access to, 
as it may elect, all statistics, data and information pertaining to such 
Subdivision; provided, however, that provisions of this Article VI 
shall control, to the extent permitted by the Act, the making of all 
examinations and audits and the use to be made of all information, 
however obtained, with respect to any employer. 

Except as otherwise provided in this Code, the Code Authority of 
each Subdivision shall hear and attempt to adjust all matters sub- 
mitted to it or to Basic Code Authority pertaining to the provisions 
of this Code and the Supplemental Code for such Subdivision, if 
any, except those pertaining to relations between employer and em- 
ployees, with respect to which relations neither Basic Code Authority 
nor any Code Authority shall have jurisdiction. For the purpose of 
hearing and attempting to adjust such matters submitted to it as are 
within its jurisdiction as defined above, such Code Authority may, to 
the extent permitted by the Act, investigate and ascertain the facts 
through such examination or audit as it may deem necessary. 

If it shall be represented to Basic Code Authority by any employer 
in any Subdivision or any other person that the Code Authority 
of such Subdivision has failed to act on any matter properly pre- 
sented to it within a reasonable time after such presentation, Basic 
Code Authority ma} 7 require that such matter be submitted to it and 
shall thereafter proceed with the determination of such matter in 
the same manner and with the same power and duties as if such 
matter were being determined by the Code Authority. 

All decisions of a Code Authority shall be final unless appeal is 
taken to Basic Code Authority, or any such decision involves matters 
required to be reported to the Administrator or to the President, in 
which case all pertinent information, papers and data in the posses- 
sion of such Code Authority shall be turned over by it to Basic Code 
Authority and Basic Code Authority shall pass upon the merits of 
the case, and make final decision, or report thereon to the Admin- 
istrator or to the President, as the case may be. 

(i) If any employer in the Industry is also an employer in any 
other industry, the provisions of this Code and the jurisdiction of 
Basic Code Authority, of any Code Authority or of any Group Code 
Authority hereunder shall apply to and affect only that part of his 
business and product which is included in the Industry, Subdivision 
or Group, respectively. If any employer in the Industry is an em- 
ployer in two or more Subdivisions, the jurisdiction of the Code 
Authority of each such Subdivision and the provisions of any Sup- 
plemental Code applicable thereto shall apply to and affect only 
that part of the business and product of such employer which is 
within such Subdivision. 



253 

(j) Nothing contained in this Code shall constitute employers in 
the Industry, or members of Basic Code Authority or of a Code 
Authority or of a Group Code Authority as partners for any pur- 
pose. Nor shall any member of Basic Code Authority or a Code 
Authority or a Group Code Authority, exercising reasonable dili- 
gence in the conduct of his duties hereunder, be liable in any manner 
to anyone for any action of any other member, officer or employee of 
Basic Authority or a Code Authority or a Group Code Author- 
ity, or be liable to anyone for any action, or omission to act, under the 
Code, or a Supplemental Code except for his own willful misfeasance 
or nonfeasance. 

The Basic Code Authority or any Code Authority or any Group 
Code Authority shall be deemed to have discharged its full duty in 
respect to any violation or alleged violation of the Code or a Supple- 
mental Code when it shall have exercised such powers as are con- 
ferred upon it, and in the event of its inability to procure compliance 
with the provisions of the Code, or Supplemental Code, shall have 
certified the facts and made available all pertinent information with 
respect to such violation or alleged violation to the Administrator or 
other appropriate Governmental authority and thereafter stood pre- 
pared to render all proper assistance to the Administrator or other 
appropriate Governmental authority to enable them to procure 
enforcement thereof. 

(k) Insofar as is permitted by the Act an agency or agencies for 
the adjustment of differences arising in the relations of employers 
and employees concerning employment may be established hereafter 
together with rules and procedures governing the activities of such 
agency or agencies, by Basic Code Authority with the approval of 
the Administrator. In the absence of such agency or in aid thereof, 
such agency or agencies as may be established under the Act may 
proceed according to law in the adjustment of any such differences. 

(1) Basic Code Authority may submit to the Administrator for 
review any action taken by it under any provisions of this Code, 
and shall do so on request of any Code Authority affected by such 
action, and any persons affected may protest to the Administrator 
any action of Basic Code Authority or Code Authority, or any rule 
or regulation by it established. 

(m) If the Administrator shall have reason to believe that any 
action of Basic Code Authority or of any Code Authority or Group 
Code Authority, or of any agency of any of them, may be violative 
of the provisions of this Code or of an applicable Supplemental 
Code or unfair, unjust or contrary to public policy, the Adminis- 
trator, after having notified and conferred with Basic Code Author- 
ity or the Code Authority of such Supplemental Code, or the author- 
ized representatives thereof, or after ten (10) days have elapsed 
from date of such notification without response from such Code 
Authority, may require, by notice, that such action be suspended for 
some definite period not exceeding thirty (30) days. 

Within fifteen (15) days from the date of such suspension, Basic 
Code Authority or the Code Authority of the applicable Supple- 
mental Code shall further consider such action and determine (a) 
whether or not it will continue with such action, as not violative of 



254 

the Code or of the applicable Supplemental Code, or (b) whether 
it will proceed with some modified action, and notify the Adminis- 
trator of such determination. 

If such determination is approved by the Administrator, or is not 
by him disapproved within fifteen (15) days thereafter, such deter- 
mination shall become effective and such suspension be automatically 
terminated. If the Administrator shall disapprove such determina- 
tion within said fifteen (15) days, such action shall be permanently 
suspended. 

x^rticle VII — Additional Subdivisions 

(a) Upon request of any trade association, organization, or group 
of employers representative of machinery or allied products not 
specifically defined in Article II hereof, Basic Code Authority may 
make application to the Administrator for amendment of this Code 
with respect to the definition of the Industry by addition thereto of 
a specific definition covering such products and, upon approval by 
the Administrator of said amendment the employers concerned 
therewith shall become members of the Industry, and shall be or- 
ganized by Basic Code Authority into a Subdivision, with a Code 
Authority to be created as provided in Article VI hereof. Concur- 
rently with application for amendment to definition, such group of 
employers concerned therewith shall make application to the Ad- 
ministrator for a Supplemental Code as provided in Article I hereof 
(applicable solely to such Subdivision and dealing with subjects not 
provided for by this Code). Upon approval by the Administrator 
such Supplemental Code shall be binding on such Subdivision and 
upon each employer therein. 

(b) Upon application to the Administrator as hereinafter pro- 
vided, made within six months after the effective date hereof, the 
definition of the Industry in this Code shall be amended with the 
approval of the Administrator, by adding thereto the specific defi- 
nitions of the products covered by any of the following codes here- 
tofore approved bv the President, viz: 

Heat Exchange Industry 

Compressed Air Industry 

Pump Manufacturing Industry 

Machine Tool and Forging Machinery Industry 

Each such application shall be made jointly by the Code Authority 
concerned and by Basic Code Authority and shall request (a) the 
inclusion of the employers concerned in such Code as a Subdivision 
of this Industry under this Code, and (b) A Supplemental Code 
hereunder for such Subdivision. Upon approval by Administrator 
of said amendment and of such proposed Supplemental Code, said 
employers shall become employers within such Subdivision of this 
Industry, and this Code and such Supplemental Code shall become 
binding upon such Subdivision and upon each employer therein and 
shall supersede the said Code theretofore applicable to such 
employers. 



255 
Article VIII — Modifications and Termination 

(a) As provided by Section 10 (b) 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 the Act. 

(b) Any amendments, additions, or revisions of this Code pro- 
posed by Basic Code Authority and adopted by the concurring 
affirmative vote of employers entitled to cast two-thirds or more of 
all the votes that might be cast by all employers entitled to vote 
thereon, shall be in full force and effect upon approval by the 
Administrator. The eligibility of voters and the method and effect 
of such voting shall be in accordance with the provisions of Section 
(d) of Article VI hereof. 

(c) This Code shall terminate June 16, 1035, or on such date 
prior thereto when the Act shall be repealed or the President shall, 
by proclamation, or the Congress shall, by joint resolution, direct 
that the emergency recognized by section 1 of the Act has ended. 

Article IX — Withdrawal 

Upon thirty (30) days' notice to Basic Code Authority and to the 
Administrator any Subdivision may, upon the concurring affirma- 
tive vote of employers within the Subdivision entitled to cast two- 
thirds or more of all the votes that might be cast by all employers 
within the Subdivision entitled to vote thereon, withdraw from the 
jurisdiction of Basic Code Authority. The eligibility of voters 
and the method and effect of such voting shall be in accordance 
with the provisions of Section (g) of Article VI hereof or with the 
provisions of the Supplemental Code, if any, for the Subdivision 
concerned. Thereafter the Supplemental Code for such Subdivi- 
sion, if any, together with the provisions of this Code except such 
portions of Articles I, II, VI, and VII as are not pertinent thereto, 
as determined by the Code Authority and the Administrator, shall 
become the code governing such former Subdivision and its Code 
Authority shall become and be the sole Code Authority and shall 
perform all the functions thereof with respect to such code. 

Article X — Monopolies 

Applicant imposes and shall impose no inequitable restrictions 
on membership therein. The Code presented by it is not designated 
to promote monopoly, and shall not be construed or applied so as 
to oppress or eliminate small enterprises or discriminate against 
them, and is designed to effectuate the policy of the Act. 

Article XI — Effective Date 

This Code shall become effective and binding on all persons 
engaged in the Industry on the eleventh day after its approval by 
the President. 

Approved Code No. 347. 
Registry No. 1399-65. 

O 



Approved Code No. 348 
CODE OF FAIR COMPETITION 

FOR THE 

BURLESQUE THEATRICAL INDUSTRY 

As Approved on March 20, 1934 



ORDER 



Approving Code of Fair Competition for the Burlesque 
Theatrical Industry 

An application having been duly made pursuant to and in full com- 
pliance with the provisions of Title I of the National Industrial Recov- 
ery Act, approved June 16, 1933, for approval of a Code of Fair Com- 
petition for the Burlesque Theatrical Industry, and hearings having 
been duly held thereon and the annexed report on said Code, contain- 
ing findings with respect thereto, having been made and directed to 
the President. 

^ NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 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 Compe- 
tition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Sol A. Rosenblatt, 

Division Administrator. 

Washington, D.C., 

March 20, 1934. 

47770° 425-109 34 (257) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Burlesque Theatrical Industry as revised after a public hearing, 
conducted in Washington, D.C., on November 9, 1933, in accordance 
with the provisions of the National Industrial Recovery Act. 

PROVISIONS AS TO WAGES AND HOURS 

Clerical and office employees are to receive a minimum wage of 
fifteen dollars per week; house managers, company managers, house 
treasurers and press representatives not less than twenty-five dollars; 
heads of wardrobe departments not less than thirty -five dollars; 
sewers not less than fifty cents per hour; ticket sellers, porters and 
barkers not less than thirty-five cents per hour and all other employees, 
not otherwise provided for, not less than thirty cents per hour. 

Principals who are denned as performers other than chorus members 
shall be paid not less than thirty -five dollars per week. Chorus 
members shall be paid not less than twenty dollars per week in resident 
companies and not less than twenty-tw T o dollars and fifty cents per 
week in road companies, provided that w 7 here a higher rate was paid 
on October 1, 1933, such higher rate shall be the minimum. 

All employees, except executives, press representatives, actors and 
chorus members are assigned a maximum working week of forty 
hours. A limited week for press representatives was found to be 
impracticable, and data was insufficient to permit setting maximum 
hours for actors and chorus. The Code Authority 7 is directed to 
investigate the working conditions of such performers and report on 
the same within ninety days after the effective date of this Code. 

Payments at the rate of time and one half for time worked in excess 
of forty hours per week is provided for employees in emergencies 
involving protection of life or property. 

All performers are guaranteed extra compensation of one-fourteenth 
of the weekly salary for each extra performance given in a two-a-day 
house, and not less than at the rate of a show and one half for extra 
performances in other than two-a-day houses. 

There are special provisions for skilled employees guaranteeing 
them the benefits which they have obtained through collective 
bargaining. 

ECONOMIC EFFECTS OF THE CODE 

The demand for burlesque theatrical performances varies greatly, 
as the public taste shifts among various types of entertainment. For 
this reason it is impossible to forecast the increase of employment to 
be brought about by the Code as this will depend on the number of 
shows playing. The w^age provisions provide for substantial increases 
to employees. 

(258) 



259 

Trade practice provisions are expected to remedy the unfair com- 
petition that has existed in the past within the Industry. 

Employers are forbidden to attempt to induce the breach of an 
existing contract between a competitor and his employees; to par- 
ticipate in any transaction known in law as a "black list" or a "white 
list", or to lower publicly announced admission prices by rebates or 
other devices which are unfair to competing employers or deceive 
the public. 

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 practices, by promoting the fullest possible utilization 
of the present productive capacity of industries, by avoiding undue 
restriction of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural products 
through increasing purchasing power by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

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

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

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

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

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

For these reasons, therefore, I have approved this Code. 
Respectfully, 

Hugh S. Johnson, Administrator. 
March 20, 1934 



CODE OF FAIR COMPETITION FOR THE BURLESQUE 
THEATRICAL INDUSTRY 

To effectuate the policies of Title I of the National Industrial 
Recovery Act the following provisions are established as a Code of 
Fair Competition for the Burlesque Theatrical Industry, and shall be 
the standards of fair competition for such Industry, and shall be 
binding upon every member thereof. 

Article I — Definitions 

1. The term "Burlesque" as used herein, is defined to be a type of 
musical entertainment known in theatrical parlance as burlesque; 
advertised as such or by other title which conveys to the public such 
entertainment, and is intended to include performances wherein 
burlesque is principally rendered in conjunction with incidental mo- 
tion or sound picture performances, and all performances or attractions 
usually identified with or typical of burlesque. 

2. The term "Member of the Industry" as used herein, includes, 
but without limitation, any individual, partnership, association, 
corporation or other form of enterprise engaged in the Industry, either 
as an employer or on his or its own behalf. 

3. The term "employer" as used herein, means any employer en- 
gaged in the Industry. 

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

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

Article II — Clerical and Office Employees 

1. No person employed in clerical or office work shall be permitted 
to work in excess of forty (40) hours in any one week or nine (9) hours 
in any twenty-four (24) hour period, and such employees shall be paid 
not less than Fifteen ($15) Dollars per week. 

EXCEPTIONS AS TO HOURS 

2. The hour provisions of this Code shall not apply to persons em- 
ployed in a managerial or executive capacity who earn not less than 
Thirty-five ($35) Dollars per week or to employees in emergencies 
involving protection of life or property, but at least one and one half 
(lji) times the normal rate shall be paid for hours worked in emer- 
gencies in excess of the maximum hours. 

EMPLOYMENT BY SEVERAL EMPLOYERS 

3. No employer shall knowingly permit any employee to work for 
any time which when totaled with that already performed for another 
emplo} r er, or employers, iD this Industry exceeds the maximum 
permitted herein. 

(260) 



261 

Article III — Performers 

1 . Principals (performers other than chorus members) shall be paid 
not less than Thirty-five ($35) Dollars per week. 

2. The chorus members shall be paid not less than Twenty ($20) 
Dollars per week in stock or resident companies, and not less than 
Twenty- two Dollars and Fifty ($22.50) Cents per week in road 
companies; provided, however, that wherever on October 1, 1933, 
any theatre paid a rate to chorus members in excess of the minimum 
wages herein provided, said higher wages shall be deemed to be and 
are hereby declared to be the minimum scale of wages with respect 
to such theatres. 

3. The producer shall not engage any performer under any agree- 
ment which would reduce the net salary below the minimum wage 
through the payment of any fee or commission to any agency (whether 
such fee is paid by the producer or independent contractor or by the 
performer), or by any other form of deduction. 

4. Wherever any company is required to give more than the regular 
number of performances contracted for, all performers shall be paid 
for said extra performances at a pro rata proportion of the weekly 
salary. Such pro rata proportion shall be not less than one four- 
teenth (Yu) of the weekly salary in a " two-a-day house" and not 
less than at the rate of a show and a half in other than a two-a-day 
house. 

5. The employer shall furnish to chorus members, without charge, 
all hats, costumes, wigs, shoes, tights, and stockings and other 
necessary stage wardrobe. 

6. The cost of transportation of the actors and chorus, when 
required to travel, including transportation from point of organiza- 
tion and back, including sleeping car accommodations, shall be 
paid by the employer. 

■ 7. If individual notice of contract termination is given by the 
employer the actor or chorus member shall be paid in cash the amount 
of the cost of transportation including sleeping car accommodations 
of the actor or chorus member and baggage back to the point of 
organization whether the company returns immediately or not. 

8. Actors and chorus members shall be guaranteed two (2) weeks' 
employment and two (2) weeks' advance notice on the road and one 

(1) week's advance notice in stock of dismissal of an individual or 
one (1) week's advance notice of the closing of the company either 
in stock or road show; provided, however, that within the first two 

(2) days' rehearsal an actor or chorus member may be dismissed 
without notice or guarantee. 

9. Chorus members shall be released from work with pay not less 
than one day out of every fourteen (14), and the day the chorus 
member is released from work such chorus member shall not be required 
to rehearse or report to the theatre or perform any service. This 
provision for a free day shall not apply to a traveling company. 

10. By reason of the peculiar nature of this Industry, it is imprac- 
ticable without further data, to be furnished by the Code Authority, 
to set the maximum hours for actors and chorus. Therefore, the 
Code Authority shall investigate the hours of labor, wages, and work- 
ing conditions of actors and chorus, and within the period of ninety 
(90) days from the effective date of this Code shall report thereon to 
the Administrator. 



262 

11. The actors and chorus members shall not be rehearsed for more 
than two (2) weeks without full pay. 

12. No employer shall re-classify 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. 

Article IV — Treasurers, Company Managers, Press Agents, 
and Other Employees 

1. House managers, company managers and house treasurers shall 
be paid not less than Twenty-five ($25) Dollars per week for a maxi- 
mum week of forty (40) hours. Assistant treasurers shall be paid 
not less than Eighteen ($18) Dollars per week for a forty (40) hours 
week. 

2. Press representatives shall be paid not less than Twenty -five 
($25) Dollars per week, hours of labor not being fixed due to nature 
of employment. 

3. Heads of wardrobe departments shall be paid not less than 
Thirty-five ($35) Dollars per week for a maximum week of forty 
(40) hours. Sewers shall be paid not less than Fifty (50^) Cents per 
hour and shall not be employed for more than forty (40) hours per 
week. 

4. Ticket sellers, porters and barkers shall be paid not less than 
Thirty-five (35^) Cents per hour for a maximum week of forty (40) 
hours. 

5. All other employees of the employers (not otherwise provided 
for) such as ushers, ticket takers, scrub women, theatre attendants, 
etc., shall be paid not less than Thirty (30^) Cents per hour for a 
maximum week of forty (40) hours. 

Article V — Musicians, Theatrical Stage Employees and 
Moving Picture Machine Operators 

1. (a) Employees associated with organizations of or performing 
the duties of bill-posters, carpenters, electrical workers, engineers, 
firemen, motion-picture machine operators, oilers, painters, theatri- 
cal stage employees, or other skilled mechanics and artisans, who are 
directly and regularly employed by the employer, shall receive not 
less than the minimum scale and work no longer than the maximum 
number of hours per week (but not more than forty (40) hours), 
which were in force as of the effective date of the Code, as the prevail- 
ing scale of wages and maximum number of hours of labor by organiza- 
tions of any of such employees affiliated with the American Federation 
of Labor with respect to their respective type of work in a particular 
class of theatre or theatres in a particular location in a particular 
community, and such scales and hours of labor with respect to any 
of such employees in such community shall be deemed to be and 
hereby are declared to be, the minimum scale of wages and maxi- 
mum number of hours with respect to all of such employees in such 
communities in such class of theatre or theatres. 

(b) Where the wage scale of any of said employees is, upon the 
effective date of this Code, based upon employment in excess of 
forty (40) hours per week, then in that event such employees shall 
receive compensation at the same hourly rate of pay as upon the 
effective date of this Code for the forty (40) hour week and for an 



263 

equitable readjustment shall receive, because of the reduction in hours 
over forty (40) which may have been in force prior to the effective 
date of this Code, additional pay computed at the rate of fifty (50%) 

Eercent of the hourly scale for all hours in excess of forty-eight (48) 
ours per week which may have been previously worked, 
(c) In the event, however, that (1) no prevailing scale of wages and 
maximum number of hours for such employees exist in such community 
with respect to such employees, or (2) any dispute should arise as to 
what is a minimum scale of wages or the maximum number of hours 
of labor with respect to any of such employees for a particular class 
of theatre or theatres in any particular community then and in either 
of those events such disputes shall be determined as follows: 

(1) If the question at issue arises with an organization of such 
employees affiliated with the American Federation of Labor, then a 
representative appointed by the National President of such affiliated 
organization, together with a representative appointed by the em- 
ployers, shall examine into the facts and determine the existing mini- 
mum scale of wages and maximum number of hours of labor for such 
class of theatre or theatres in such particular locality, and in the 
event they cannot agree upon the same, they shall mutually designate 
an impartial third person who shall be empowered to sit with such 
representatives, review the facts and finally determine such dispute, 
with the proviso, however, that in the event such representatives 
cannot mutually agree upon such third person, then the Administrator 
shall designate such third person; or 

(2) If the question at issue arises with unorganized employees or 
with an organization of such employees not affiliated with the Ameri- 
can Federation of Labor, and if in said community there exist members 
of such affiliated organization directly and regularly employed by any 
employers, then a representative of such unorganized employees, or, 
as the case may be, a representative appointed by the President of 
such unaffiliated organization, or both, together with a representative 
appointed by the National President of such affiliated organization 
above referred to, together with a representative appointed by the 
employers, shall examine into the facts and unanimously determine 
the existing scale of wages and maximum number of hours of labor for 
such class of theatre or theatres in such particular community, and in 
the event they cannot unanimously agree upon the same, they shall 
mutually designate an impartial person who shall be empowered to 
sit with such representatives, review the facts, and finally determine 
such dispute, with the proviso, however, that in the event such repre- 
sentatives cannot mutually agree upon such impartial person, then 
the Administrator shall designate such impartial person; or 

(3) If the question at issue arises with unorganized employees or 
with an organization of such employees not affiliated with the Ameri- 
can Federation of Labor and not subject to the foregoing provisions of 
sub-paragraphs (1) and (2) of Paragraph (c) hereof, then a representa- 
tive of such unorganized employees, or, as the case may be, a repre- 
sentative of the President of such unaffiliated organization, or both 
together, with a representative appointed by the employers, shall 
examine into the facts and determine the existing minimum scale of 
wages and maximum hours of labor, for such class of theatre or theatres 
in such particular locality, and in the event they cannot agree upon 
the same, they shall mutually designate an impartial person who shall 



264 

be empowered to sit with such representatives, review the facts and 
finally determine such dispute, with the proviso, however, that in the 
event such representatives cannot mutually agree upon such impartial 
person, then the Administrator shall designate such impartial person. 

(d) Pending the determination of any such dispute, the rate of 
wages then paid by the employers in such theatre or theatres in such 
community, and the maximum number of hours then in force shall 
not be changed so as to decrease wages or increase hours. However, 
if the hours exceed those established by this Code they shall be 
decreased to the maximum allowed. 

(e) In order to effectuate the foregoing provisions of Section 1, 
Aereof, and pending the determination of any dispute as above speci- 
fied, the employees herein embraced and provided for agree that they 
shall not strike, and the employers agree that they shall not lock out 
such employees. 

2. In no event shall the duties of any of the employees hereinabove 
specified in Section 1 (a) directly and regularly employed by the 
employers as of the effective date of this Code, be increased so as to 
decrease the number of such employees employed in any theatre or 
theatres in any community, except by mutual consent. 

3. By reason of the professional character of their employment, the 
minimum wage and maximum hours of employment of employees 

Eerforming the duties of musicians shall as heretofore be established 
y prevailing labor agreements, understandings, or practices. 

4. With respect to disputes arising between emplovees and em- 
ployers the parties pledge themselves to attempt to arbitrate all such 
disputes. 

5. Overtime shall be compensated for at the rate of one and one half 
(iy 2 ) times the normal rate. 

6. The Administrator after such notice and hearing as he shall 
prescribe may revise or modify any determination of any dispute 
pursuant to Article V, Section 1 hereof. 

Article VI — General Labor Provisions 

1. Employers shall not employ any employees under the age of 
eighteen (18) years. 

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

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

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

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

3. 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, 



265 

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

4. All employers shall post complete copies of this Code in con- 
spicuous places accessible to employees. 

5. 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 this Code. 

Article VII — Administration 

1. There shall forthwith be constituted a Code Authority consist- 
ing of nine (9) persons to be elected by the members of the Industry 
by a fair method to be approved by the Administrator. 

2. In addition to membership as above provided, there may be 
three (3) members, without vote, to be appointed by the Adminis- 
trator. 

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

4. As and when any question directly or indirectly affecting any 
class of employees engaged in the Burlesque Theatrical Industry is 
to be considered by the Code Authority, one representative of such 
class, appointed by the Administrator, shall sit with and become for 
such purposes a member of the Code Authority with a right to vote. 

5. If the Administrator shall determine that any action of the 
Code Authority or any agency thereof is unfair or unjust or contrary 
to the public interest, the Administrator may require that such 
action be suspended for a period of not to exceed thirty (30) days to 
afford an opportunity for investigation of the merits of such action 
and further consideration by such Code Authority or agency pend- 
ing final action, which shall be taken only upon approval by the 
Administrator. 

6. 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 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. 

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 manner to anyone for any act 
of any other member, officer, agent or employee of the Code Authority. 
Nor shall any member of the Code Authority, exercising reasonable 
diligence in the conduct of his duties hereunder, be liable to anyone 
for any action or omission to act under this Code, except for his own 
willful misfeasance or non-feasance. 



266 

8. The Code Authoritj^ shall have the following further powers and 
duties, the exercise of which shall be reported to the Administrator 
and shall be subject to his right of review, set forth in Section 5 hereof: 

(a) To insure the execution of the provisions of this Code and pro- 
vide for the compliance of the Industry with the provisions of the 
Act, under such rules and regulations as may be established by 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 the members of the Industry such information 
and reports as are required for the administration of the Code and to 
provide for submission by members of such information and reports 
as the Administrator may deem necessary for the purposes recited 
in Section 3 (a) of the Act, which information and reports shall be 
submitted by members to such administrative and/or government 
agencies as the Administrator may designate; provided that nothing 
in this Code shall relieve any member of the industry of any existing 
obligations to furnish reports to any government agency. No individ- 
ual reports shall be disclosed to any other member of the Industry 
or any other party except to such governmental agencies as may be 
directed by the Administrator. 

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

(e) To make recommendations to the Administrator for the 
coordination of the administration of this Code with such other codes, 
if any, as may be related to the Industry. 

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

(g) To cooperate with the Administrator in regulating the use of 
any N.R.A. insignia solely by those members of the Industry who have 
assented to, and are complying with, tins Code. 

(h) To recommend to the Administrator further fair trade practice 
provisions to govern members of the Industry in their relations with 
each other or with other industries and to recommend to the Admin- 
istrator measures for industrial planning, including stabilization of 
employment. 

(i) Where the operations of the provisions of this Code impose an 
unusual or undue hardship upon any producer or employer such pro- 
ducer or employer may make application for relief to the Administra- 
tor or to his duly authorized agent, and the Administrator or his 
agent may, after such public notice and hearing as he may deem 
necessary, grant such exception to or modification of the provisions 
of this Code as he may deem necessary to effectuate the policy of the 
National Industrial Recovery Act. 



267 
Ap/ticle VIII — Trade Practices 

1. No member of the Industry shall attempt to induce the breach 
of an existing contract between a competitor and his employee; nor 
shall an}' such member interfere with or obstruct the performance of 
such contractual duties or services. 

2. No member of the Industry shall join or participate with other 
members of the Industry who with such member constitute a sub- 
stantial number of the members of the Industry or who together 
control a substantial per cent of the business, in any transaction 
known in law as a black list, including any practice or device (such 
as a white list), which accomplishes the purpose of a black list. 

3. No member of the Industry shall (a) lower the admission prices 
publicly announced or advertised by his theatre by giving rebates, in 
the form of lotteries, prizes, reduced script books, coupons, throw- 
away tickets or by two-for-one admissions, or by other methods or 
devices of similar nature which directly or indirectly lower or tend to 
lower such announced admission prices and which are unfair to com- 
peting employers, or winch deceive the public. This provision shall 
not be deemed to prohibit members of the Industry from reducing or 
increasing their admission scales as they see fit, provided that such 
admission scales be publicly announced or advertised. 

4. Displaying the name "Burlesque" on any theatre, hall, tent or 
other place of exhibition, shall be prima facie evidence that the em- 
ployer of the attraction is subject to this Code. 

Article IX — 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 to the right of the President to cancel or modify his approval 
of tliis Code or any conditions imposed by him upon his approval 
thereof. 

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

Article X — Monopolies, Etc. 

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

Article XI — Effective Date 

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

Approved Code No. 348. 
Registry No. 1748-14. 

o 



Approved Code No. 349 
CODE OF FAIR COMPETITION 

FOR THE 

MAYONNAISE INDUSTRY 
As Approved on March 21, 1934 



ORDER 



Approving Code of Fair Competition for the Mayonnaise 

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 Mayonnaise Industry, and hearings having 
been duly held thereon, and the annexed report on said Code con- 
taining findings with respect thereto having been duly 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, 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 
the Act ; and do hereby order that said Code of Fair Competition be 
and it is hereby approved : provided, however, that the provision 
thereof shall not become effective, and they are hereby stayed, for 
a period of 10 days in order to afford consideration of the objections of 
any interested parties, and that at the expiration of said period said 
Code shall become effective unless I shall by my further order other- 
wise determine or extend such stay : and provided, further, that the 
provisions of Article X, Section 1, paragraph (a), in so far as they 
prescribe a waiting period between the filing with the Code Authority 
and the effective date of revised schedules of prices, discounts, terms 
and conditions of sale be and they are hereby stayed pending my 
further order either within sixty (60) days from the effective date of 
the Code or after the completion of a study of open price associations 
now being conducted by the National Recovery Administration : and 
provided, further, that the limitation of hours for watchmen con- 
tained in Article III, Section 3, be and hereby is changed from 
sixty-three (63) to fifty-six (56) hours. 

Hugh S. Johnson, 
Administrator For Industrial Recovery. 

Approval recommended : 
Armin W. Riley, 

Division Admin istrator. 

Washington, D.C.. 

March 21, 193^ 

47763° 425-115 34 (269) 



REPORT TO THE PRESIDENT 

The President. 

The White House. . 

Sir : This is a report on the hearing of the Code of Fair Competition 
for the Mayonnaise Industry. 

This hearing was held at the Lafayette Hotel, Washington. D.C., 
on October 20, 1933, pursuant to notice of hearing signed by the Sec- 
retary of Agriculture under Executive Order of June 26. 1933. By 
Executive Order of January 8, 1934, the jurisdiction over this code 
was transferred to the National Recovery Administration. Certain 
changes have been made in the code to conform to X.R.A. policy, but 
these changes are not in conflict with the transcript of the record of the 
public hearing. 

GENERAL 

The code for the Mayonnaise Industry will mean, it is estimated, 
an increase in employment of seventeen and one half per cent (17 ] /2% ) 
and in wages from twelve (12) to thirteen per cent (13' , ). Average 
hours in 1929 were reported as fifty (50) for factory workers, and in 
1933 before P.R.A. as forty-seven (47) ; a reduction to forty (40) hours 
as provided in this code will mean an increase of seventeen and one 
half percent (17y 2 %) in employment from that prevailing early in 
1933. In actual practice this increase will not affect all groups of 
employees equally : if limited to factory workers alone, an increase of 
nine per cent (9 r 7 ) may be realized. Average wages for unskilled 
wage earners in 1933 before P.R.A. were reported as thirty-six (36) 
cents per hour for males and twenty-six (26) cents per hour for females, 
as compared with forty (40) cents per hour and thirty-five (35) cents 
per hour respectively for the ninety per cent (90%) of the industry 
located in the North and West, and thirty-two and one half (321^) cents 
per hour and twenty-seven and one half (27 1 /.) cents per hour respec- 
tively for the ten per cent (10% ) of the industry located in the South. 
For the relatively small part of the industry in the South, these rates 
represent an even larger increase than for the North. 

Until recent years the making of mayonnaise and salad dressings 
was confined to' the home. In 1921 the value of the products of the 
Mayonnaise Industry manufactured outside the home was practically 
negligible. In the succeeding years the industry rapidly increased 
sotiiat it is estimated that there are about three hundred and seventy 
(370) manufacturers today with an estimated volume in 1932 of about 
$28,000,000. 

The employment in the Mayonnaise Industry is estimated at 5.000 
employees, in addition to those engaged in store-door delivery service 
whose number is estimated at twelve thousand (12.000). 

The Mayonnaise Institute. Incorporated, is a trade association, 
truly representative of the industry, and imposes no inequitable 
restrictions on membership. 

(270) 



271 



HOURS AND WAGES 



The code of the Mayonnaise Industry provides for a maximum 
work week of forty (40) hours with a limitation of nine (9) hours per 
day. There are the usual exceptions, complete or partial, in the case 
of executive, managerial, or technical employees who regularly receive 
not less than thirty-five dollars ($35.00) per week in cities of 100,000 
population or over, or thirty dollars ($30.00) per week in cities and 
towns of less than 100,000 population; outside salesmen and service 
salesmen who regularly receive not less than thirty dollars ($30.00) 
per week in cities of over 300,000 population, or twenty-five dollars 
($25.00) per week elsewhere, averaged over a four (4) weeks' period. 
Watchmen may work sixty-three (63) hours per week. Chauffeurs 
and deliverymen may work forty-eight (48) hours per week. Engineers 
and firemen may work forty-four (44) hours per week. In cases of 
unforeseen peak production, inventory and financial closing periods 
employees may work not to exceed six (6) hours in any week except 
in eases of emergency installation and emergency repair work, and 
shall be compensated by at least one and one-third times the normal 
rate. 

The minimum wages are set at forty (40) cents per hour for men 
and thirty- two and one half (32 K) cents per hour for women, with a 
differential of five (5) cents per hour in the South. Office employees 
are under a minimum by population, starting at sixteen dollars ($16.00) 
per week for cities of over 500,000 population. Watchmen shall 
receive not less than eighteen dollars ($18.00) per week. One and 
one-third times the normal rate shall be paid for all time worked 
(except by watchmen, outside salesmen, service salesmen and those 
persons employed in managerial, executive or technical capacity) on 
Sundays and the following holidays: Christmas Day, Thanksgiving 
Day, Labor Day, July 4th, New Year's Day and such other holidays 
as may be proclaimed by the President of the United States. No 
person under sixteen (16) years of age shall be employed in the 
industry. 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the 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 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), 
and 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. 



272 

(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 Mayonnaise Industry, 
Incorporated, 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 the above reasons, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
March 21, 1934. 



CODE OF FAIR COMPETITION FOR THE MAYONNAISE 

INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Code of Fair 
Competition for the Mayonnaise 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 terms " Administrator" and "Act" mean respectively, 
the Administrator for Industrial Recovery and Title I of the National 
Industrial Recovery Act. 

(c) The terms "'Mayonnaise Industry" and "Industry" mean the 
manufacture and the primary distribution by the manufacturer of 
Mayonnaise, Salad Dressing, French Dressing, Thousand Island 
Dressing, Tartar Sauce, Russian Dressing, and all other products 
the basic ingredients of which are the same as contained iu 
the products above enumerated and which are used for the same 
purpose; and such related branches or subdivisions as may from time 
to time be included under the provisions of this Code by the President 
of the United States after such notice and hearing as he may prescribe. 

(d) The term "primary distribution" as used nerein means the dis- 
tribution by a member of the industry to a wholesaler or to such branch 
of a member of the industry as is covered by the wholesale food and 
grocery code or in the case of members of the industry, who sell direct 
to retailers (without any intermediate step) shall include distribution 
to the point of sale to such retailers. 

(e) The term "member of the industry" includes any individual, 
partnership, association, corporation or other form of enterprise en- 
gaged in the mayonnaise industry, either as an employer or on his or 
its own behalf. 

(f) The term "employee" includes any person engaged in the in- 
dustry in any capacity receiving compensation for his services, irre- 
spective of the method of payment of such compensation, except, 
however, a member of the industry. 

(g) The term "employer" includes any one by whom any such 
employee is compensated or employed. 

(h) The term "watchmen" includes only employees whose principal 
'function is watching and guarding the premises and property of an 
establishment in the industry. 

(i) The term "outside salesman" means a salesman who is engaged 
not less than sixty percent (60%) of his working hours outside of the 
establishment of his employer and who does not ordinarily deliver 
merchandise. 

(273) 



274 

(j) The term "service salesman" means any salesman who also 
delivers and services merchandise. 

(k) The term "Code Authority" means the body which shall 
administer this Code on behalf of the mayonnaise industry under the 
powers hereinafter provided, as set forth in Article VI of this Code. 

(1) The term "trade buyer" means any commercial buyer as 
distinguished from an ultimate consumer buyer. 

(m) The term "Labor Provisions" shall mean provisions relating 
to the determination and administration of hours of labor, rates of 
pay and other conditions of employment within the industry. 

(n) Population shall be determined by reference to the Fifteenth 
Census of the United States (U.S. Department of Commerce, Bureau 
of Census, 1930). 

Article III — Hours 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any week or nine (9) hours in any day, except 
as otherwise provided in this Article. 

Section 2. The provisions of this Article shall not apply to per- 
sons employed in a managerial, executive, or technical capacity, who 
regularly receive not less than thirty-five dollars ($35.00) per week in 
cities of 100,000 population, or over, or thirty dollars ($30.00) per 
week in cities and towns of less than 100,000 population; or to outside 
salesmen and service salesmen, who regularly receive not less than 
thirty dollars ($30.00) per week in cities of over 300,000 population, 
or twenty-five dollars ($25.00) per week elsewhere, averaged over a 
four weeks period. 

Section 3. Watchmen shall not work in excess of sixty-three (63) 
hours per week. 1 

Section 4. Chauffeurs and deli very men shall not work in excess 
of forty-eight (48) hours per week. 

Section 5. Engineers and firemen shall not work in excess of forty- 
four (44) hours per week. 

Section 6. In case of unforeseen peak production, inventory 
periods, financial closing periods, and other unusual conditions beyond 
the control of the employer, employees may work in excess of the 
normal number of working hours per day or per week provided in this 
Code for them respectively. Such overtime shall not exceed six (6) 
hours in any week, except in cases of emergency repair work involving 
breakdowns or protection of life or property, and emergency installa- 
tions; and shall be compensated by at least time and one-third the 
normal rate. 

Section 7. It shall be the duty of employers to lay out routes for 
service salesmen such that under normal conditions the total time 
required to complete the route shall not exceed nine (9) hours from 
the time of leaving to the time of arriving at the plant or other base 
point, with one hour allowed for lunch. 

Section 8. No employer shall knowingly permit any employee to 
work for a total number of hours in excess of the number of hours* 
prescribed for his occupation, for each week and day, whether 
employed by one or more employers. 

' Hours changed to 56; see paragraph 2 of order approving this Code. 



275 

Article IV — Wages 

Section 1. No person employed in clerical, accounting or other 
office work shall be paid less than at the rate of: 

$16.00 a week in cities of over 500,000 population or in the imme- 
diate trade area, 

$15.00 a week in cities between 250,000 and 500,000 population or 
in the immediate trade area, 

$14.00 a week in cities and towns less than 250,000 population, 
except that office boys and messengers may be paid at a minimum 
rate of two dollars ($2.00) below the minimum wage otherwise appli- 
cable; provided, however, that where more than one employee is 
employed as an office boy or messenger, not more than ten percent 
(10%) of the total number of office employees shall be so classified. 

Section 2. No watchmen shall be paid at a rate of less than 
eighteen dollars ($18.00) per week. 

Section 3. No other male employee shall be paid at a rate of less 
than forty cents (400) per hour, and no other female employee shall 
be paid at a rate of less than thirty-two and one-half cents (32)^) 
per hour; except that minimum rates of thirty-five cents (35ff) per 
hour for male employees covered by this Section, and twenty-seven 
and one-half cents (27%^) per hour for female employees covered by 
this Section may be paid in the following States: Virginia, North 
Carolina, Louisiana, Texas, Arkansas, Oklahoma, Kentucky, South 
Carolina, Tennessee, Alabama, Georgia, Florida and Mississippi. 

Section 4. Where a piece-work rate is the method of payment, 
the piece rate shall yield for each employee on such work not less than 
the minimum hourly wage otherwise applicable for such person, 
computed over a day's work. 

Section 5. No employee whose normal full time weekly hours, 
after the approval of this Code, shall be sixteen and two-thirds percent 
(16%%), or less, below his normal full time weekly hours for the four 
months ending May 1, 1933, shall have his full time weekly earnings 
reduced below the average weekly earnings of such employee during 
such four months' period. In case the reduction in hours, as so 
measured, is more than sixteen and two-thirds percent (16%%), 
employers shall make an equitable readjustment of hourly wage 
rates upwards, provided that in each such case hourly wage rates 
shall be increased by at least twenty percent (20%). In no case 
shall hourly wage rates be reduced. 

Section 6. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees, provided this work is performed on the same shift. 

Section 7. Time and one-third the normal rate shall be paid for 
all time worked (except by watchmen, outside salesmen, service sales- 
men and those persons employed in a managerial, executive, or 
technical capacity, as set forth in Section 2 of Article III) on Sundays 
and the following holidays: Christmas Day, Thanksgiving Day, 
Labor Day, July Fourth, New Year's Day, and such other holidays 
as may be proclaimed by the President of the United States. 

Section 8. A person whose earning capacity is limited because of 
age or physical or mental handicap may be employed on light work 
at a wage below the minimum established by this Code, if the em- 
ployer obtains from the authority designated by the United States 

47763° 425-115 34 2 



276 

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 
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 before May 1, 1934 a list of such opera- 
tions or occupations. In any jurisdiction, 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 
jurisdiction 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 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 organization 
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. Employers shall not change the method of payment of 
employees' compensation or reclassify employees or duties of occupa- 
tions performed by employees, or engage in any other subterfuge, so 
as to defeat the purposes or provisions of the Act or of this Code. 

Section 6. Every employer shall make reasonable provision for 
the safety and health of his employees at the place and during the 
hours of their employment. 

Section 7. No employee now employed at a rate in excess of the 
minimum shall be discharged and reemployed at a lower rate for the 
purpose of evading the provisions of this Code. 

Section 8. No provision in this Code shall supersede any law which 
imposes on employers more stringent requirements as to age of employ- 
ees, wages, hours of work, or as to safety, health, sanitary or general 
working conditions, than are imposed by this Code. 

Section 9. All employers shall post complete copies of the Labor 
Provisions of this Code in conspicuous places accessible to employees. 

Section 10. The provisions of this Code governing hours of labor, 
rates of pay, and other conditions of employment shall apply to all 
persons who would ordinarily be classed as employees in this industry, 
and no employer shall exempt any such person from said provisions 
because he is related to the employer, or for any other reason. 

Section 11. After the effective date of this Code, wages shall be 
exempt from fines; and from charges and deductions, except charges 
or deductions covering employees ' voluntary contributions to pension, 



277 

insurance or benefit funds; and no employer shall withhold wages 
except upon service of legal process or other papers lawfully requiring 
the same. Deductions for purposes not heretofore stated m&y be 
made only when the agreement is in writing and is kept on file by the 
employer open to the inspection of the Administrator. 

Article VI — Administration 

A. ORGANIZATION AND CONSTITUTION OF CODE AUTHORITY 

Section 1. There shall forthwith be constituted a Code Authority 
for the mayonnaise industry to consist of seven (7) members, which is 
hereby designated as the agency for the administration of this Code. 
All members of the mayonnaise industry who shall have qualified to 
participate in the selection of the members of the Code Authority in 
accordance with Section 7 of this Article shall have the right to vote 
for the members of the said Code Authority. Four (4) of the mem- 
bers of the Code Authority shall be elected by and shall be repre- 
sentative of those members of the industry whose individual gross 
annual sales of products of the mayonnaise industry are less than three 
million dollars ($3,000,000). Each of such members of the industry 
shall have one vote for each of such four (4) members of the Code 
Authority to be elected, and such voting may be cumulative. The 
other three (3) members of said Code Authority shall be elected by 
and shall be representative of those members of the industry whose 
individual gross annual sales of products of the mayonnaise industry 
are three million dollars ($3,000,000) or more. Each such member of 
the industry shall have one vote for each of such three (3) members 
of the Code Authority to be elected, and such voting may be cumu- 
lative. Of the votes cast by those members of the industry whose 
individual gross annual sales are under three million dollars ($3,000,000), 
the four (4) persons receiving the greatest number of such votes shall 
immediately become members of said Code Authority, and of the 
votes cast by those members of the industry whose individual gross 
annual sales are over three million dollars ($3,000,000), the three (3) 
persons receiving the greatest number of such votes shall immediately 
become members of the Code Authority. Provided, however, in the 
first election of the Code Authority, no member of the industry shall 
be deprived of the right to vote by reason of the nonpayment of his 
share of expenses as provided for in Section 7 of this Article. In addi- 
tion to the membership of the Code Authority as above provided, 
there may be one or more members, without vote and without cost 
to the Industry, to be appointed by the Administrator, to serve on the 
Code Authority for such time as he may designate. The representa- 
tives who may be appointed by the Administrator, together with the 
Administrator, shall be given notice of, and shall be permitted to sit 
at all meetings of the Code Authority. 

Section 2. In the event of the death or resignation of any member 
of the Code Authority, his successor shall be elected by the same class 
of members of the industry as he was. In the event of any such death 
or resignation, the election of such successor shall be held at such time 
and in such manner as designated by the Code Authority. In the 
event that such successor shall not have been elected within a period 
of thirty (30) days from the date of such death or resignation, then 



278 

and in that event, the Administrator shall have the right to designate 
from the same class such successor, and he shall serve until the time 
a successor shall be elected as above provided. 

Section 3. The members of the Code Authority shall hold office 
for one (1) year and until their respective successors are elected. 
Elections of the Code Authority shall be held annually on a date fixed 
by the Code Authority. Voting for the Code Authority may be 
in person, by proxy, or by mail. 

Section 4. The Code Authority shall elect from its own members 
a Chairman. 

Section 5. The provisions of Sections 2, 3 and 4 of sub-division A 
of this Article shall not be applicable to members of the Code Author- 
ity appointed by the Administrator, as provided for in Section 1 of 
subdivision A of this Article. 

Section 6. In order that the Code Authority shall at all times be 
truly representative of the industry, and in other respects comply 
with the provisions of the Act, the Administrator may prescribe such 
hearings as he may deem proper; and thereafter, if he shall find that 
the Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an appro- 
priate modification in the method of selection of the Code Authority. 

Section 7. All members of the industry shall be entitled to par- 
ticipate 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 the administration of this 
Code. Such reasonable share of expenses shall be determined by the 
Code Authority, subject to review by the Administrator, on the basis 
of the total dollar volume derived by members of the industry from 
the sale of the products of the mayonnaise industry and/or such other 
factors as may be deemed equitable. 

Section 8. Each trade or industrial association, directly or 
indirectly participating in the selection or activities of the Code 
Authority, shall 

(1) impose no inequitable restrictions on membership, and 

(2) submit to the Administrator true copies of its Articles of Asso- 
ciation, By-Laws, Regulations, and all amendments 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. 

B. POWDERS AND DUTIES OF CODE AUTHORITY 

Section 1. The Code Authority shall have the following further 
powers and duties: 

(a) To insure the execution of the provisions of this Code and pro- 
vide for the compliance of the mayonnaise industry with the provi- 
sions of the Act, subject to such rules and regulations as the Adminis- 
trator may establish. 

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

(c) To obtain from members of the industry such information and 
reports as are required for the administration of the Code. To pro- 
vide for the submission by members of such information and reports 
as the Administrator may deem necessary for the purposes recited in 
Section 3 (a) of the Act which information and reports shall be sub- 



279 

initted by members to such administrative and/or government agen- 
cies as the Administrator may designate. Provided that nothing in 
this Code shall relieve any member of the industry of any existing 
obligations to furnish reports to any government agency. No indi- 
vidual reports shall be disclosed to any other member of the industry 
or any other party or agency except such government agencies as may 
be specified by the Administrator. The data contained in such reports 
may be used by the Code Authority for general statistical purposes 
without individual identification. 

(d) To investigate, upon complaint of any interested party (if, in 
the opinion of the Code Authority, the complaint warrants such 
action) and subject to such rules and regulations as the Administrator 
may establish, any alleged specific violation or violations of any pro- 
vision or provisions of this Code, and, if it deems advisable, to require 
a report in such form as the Code Authority shall prescribe, from any 
member or members of the industry against which such complaint 
shall have been made, setting forth the facts pertaining to the alleged 
violation or violations. 

(e) In the event any member or members of the industry shall fail 
to file a report or reports when requested by the Code Authority so 
to do, in accordance with the preceding paragraph, or in event the 
Code Authority shall be of the opinion that any such report or reports 
when filed do not truly reflect the facts, or, in the case of any such 
report, that the details requested by the Code Authority shall not 
have been furnished, the Administrator, upon the request of the Code 
Authority, shall have the right, during reasonable business hours, to 
cause the pertinent books and records of the member or members of 
the industry involved to be examined by a disinterested certified public 
accountant or other accountant having equal qualifications, in order 
to determine whether the alleged violation has occurred. After mak- 
ing such examination, said accountant shall make a report of his 
findings to the Administrator, who shall keep the same confidential, 
and who, after a consultation with the Code Authority, shall take 
such action as he deems advisable. 

(f) If, after examining any reports filed in accordance with either 
of the preceding two paragraphs, and after making any other investi- 
gations, and after such hearings as it shall deem advisable, the Code 
Authority shall determine that any violation of this Code has been 
committed, it shall, at its option, (1) notify the member or members 
of the industry so violating the Code, and if the party continues in 
such violation, the Code Authority shall then notify the Adminis- 
trator; or (2) report its findings of fact and recommendations to the 
Administrator who may take such action under applicable law as he 
deems necessary. 

(g) To formulate 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 of the 
industry. Thereafter, all members of the industry shall determine 
and/or estimate costs in accordance with the principles of such 
methods. 

(h) To use such trade associations, and other agents or 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 



280 

Authority of its duties or responsibilities under this Code and that 
such trade associations, agents and agencies shall at all time be 
subject to and comply with the provisions hereof. 

(i) 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. 

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

(k) To cooperate with the Administrator in regulating the use of 
any N.R.A. insignia solely by those members of the industry who are 
complying with this Code. 

(1) To recommend to the Administrator further fair trade practice 
provisions to govern members of the industry in their relations with 
each other or with other industries, and to recommend to the Adminis- 
trator measures for industrial planning, including stabilization of 
employment. 

(m) To elect a representative to serve on any coordinating or 
advisory committee which may subsequently be established for the 
entire grocery and food manufacturing industry, and to cooperate 
with any such committee with respect to any function that may be 
delegated to it by the Administrator. 

Section 2. In the event complaint should be made against any 
member of the industry by which any member of the Code Authority 
is employed, charging a violation of any provision of this Code, such 
member of the Code Authority shall not have the right to vote on 
the action to be taken on such complaint. 

Section 3. Four (4) members of the Code Authority shall consti- 
tute a quorum thereof. Any action taken by the Code Authorit}^ 
shall be by a majority vote of the membership of the Code Authority, 
provided, however, that no action shall be taken by the Code Author- 
ity unless concurred in by at least two (2) members of the Code 
Authority who were chosen by the votes of those members of the 
industry wiiose individual gross annual sales of products of the 
mayonnaise industry are less than three million dollars ($3,000,000), 
and by at least two (2) members of the Code Authority elected by 
those members of the industry whose individual gross annual sales 
of products of the mayonnaise industry exceed three million dollars 
($3,000,000). In the event that any member of the Code Authority 
shall be unable to attend a meeting of such Code Authority, or other- 
wise temporarily perform his duties as a member of such Code 
Authority, he is hereby authorized to designate some other person 
from the member of the industry with which he is connected to 
attend and vote at such meeting and perform such temporary duties 
in his place and stead. 

Section 4. If the Administrator shaLl determine that any action 
of the Code Authority or any agency thereof, is unfair or unjust, or 
contrary to the public interest, the Administrator may require that 
such action be suspended 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 disapprove 
after thirty days notice to him of intention to proceed with such 
action in its original or modified form. 



281 

Section 5. Each member of the industry shall prepare and file 
with the Code Authority, at the request of and at such times and in 
such manner as the Code Authority may prescribe, such information 
and reports as are required for the administration of the Code. 

Article VII— Divisions 

Section 1. For the better administration and enforcement of 
certain of the provisions of tins Code, the Code Authority is em- 
powered to establish, from time to time, geographical divisions of 
the mayonnaise industry, with a view toward a more practical opera- 
tion of this Code; andthe Code Authority may increase or decrease 
from time to time, the number of such geographical divisions. The 
Code Authority shall prescribe which States and/or other districts 
shall comprise each of the geographical divisions that may be formed. 
The Code Authority shall immediately notify the Administrator of 
any action taken by it pursuant to this section. 

Section 2. In any of the geographical divisions which may at any 
time be formed within the mayonnaise industry, there may be 
formed, upon application of members of the industry located therein, 
a Divisional Committee which shall consist of seven (7) members to 
be elected by the members of the industry located in such Division, 
each such member of the industry having one (1) vote for each Com- 
mittee member, and such voting may be cumulative. Such Divisional 
Committee shall have the right to advise the Code Authority in 
the administration of this Code on questions having local applica- 
tion. Any member of the industry which maintains a company 
office or plant in a geographical division shall have the right to vote 
for members of the Divisional Committee thereof and to serve as a 
member of such Committee, provided, however, that the Code 
Authority, in delegating any powers, duties or functions to a Divi- 
sional Committee, shall not be relieved of any of its duties or responsi- 
bilities, and that Divisional Committees shall at all times be subject 
to and comply with the provisions hereof. On each such Divisional 
Committee, the Administrator shall have the right to designate an 
administration member to serve without vote and without cost to the 
industry. 

Article VIII— Standards 

The standards set forth below for Mayonnaise and Salad Dressing 
shall be adhered to by all members of the industry. If any product 
does not conform with these standards, it may not be labeled Mayon- 
naise or Salad Dressing, as the case may be. 

Section 1. Mayonnaise. — Mayonnaise, mayonnaise dressing, may- 
onnaise salad dressing, is the semi-solid emulsion of edible vegetable 
oil, egg yolk, or whole egg, a vinegar, and/or lemon juice, seasoned 
with one or more of the following: Salt, sugar, and/or dextrose, or 
other seasoning commonly used in its preparation. Any other sugar 
for which a standard has been established, and unrefined milk sugar, 
may be used, provided the presence of same is declared on the label. 
The finished product contains not less than fifty percent (50%) of 
edible vegetable oil, and the sum of the percentages by weight of oil 
and egg yolk is not less than sixty -six and two-thirds (66%). 

Section 2. Salad Dressing. — Salad Dressing is the wholly or partly 
cooked or boiled semi-solid emulsion of edible vegetable oil, egg yolk 



282 

or whole egg, a vinegar, water and/or lemon juice, with one or more 
of the following: Salt, other seasoning commonly used in its prepara- 
tion, sugar and/or dextrose, starches or other edible moisture absorb- 
ing agents; and without artificial color. Any other sugar for which a 
standard has been established, and unrefined milk sugar, may be used. 
Where any edible moisture absorbing agents are used, the same must 
be declared on the label. The finished product contains not less than 
thirty -five percent (35%) by weight of edible vegetable oil. 

Section 3. The standards for Mayonnaise and Salad Dressing, 
above set forth, shall not be construed to include or apply to Thou- 
sand Island Dressing, Tartar Sauce, French Dressing or Russian 
Dressing. 

Article IX — Marketing and Distribution 

Section 1. 4 oz., 8 oz., 16 oz., 32 oz., and 128 oz. containers and 
whole gallon multiples thereof are hereby declared to be the standard 
sizes for containers of the products of the mayonnaise industry. 

The aforementioned ounce measurements shall be applied in terms 
of fluid measurements, and the aforementioned 16 oz., 32 oz., and 
128 oz. containers shall be labeled in terms of pints, quarts and gallons 
respectively. 

Section 2. Standard size containers only may be used by members 
of the industry, and the use of containers of any other size is hereby 
expressly forbidden, provided, however, that members of the industry 
who at the time of the approval of this Code are selling products of 
the industry in containers not of the standard sizes above set forth 
may continue to do so until their present supply of such odd sized 
containers is exhausted, but in no event shall such use be continued 
after six (6) months after the effective date of this Code, and no 
purchases of such odd sized containers shall hereafter be made by 
any member of the industry. 

Section 3. No member of the industry shall pay a trade buyer for 
a special advertising or ojther distribution service by such buyer: 

(a) except in pursuance of a written contract made in good faith 
and explicitly defining the service to be rendered and the payment 
for it ; and 

(b) unless such service is rendered and such payment is reasonable 
and not excessive in amount and commensurate with the service 
rendered; and 

(c) unless such contract is separate and distinct from any sales 
contract and such payment is separate and distinct from any sales 
price and is not designed or used to reduce such price; and 

(d) unless, if such contract deals with cooperative advertising in 
newspapers, such advertising by each member of the industry shall 
be limited to fifty-six (56) lines per week for each newspaper employed; 
and 

(e) unless such arrangement is equally available to all competitive 
trade buyers of the same class under like distribution conditions, in 
the same trade area; and 

(f) unless a copy of each such contract is retained on file for a 
period of one year. The Administrator and/or the Code Authority 
shall be empowered to require a member of the industry to report 
such contracts made by him, and/or to produce a copy thereof for 
inspection. This section is designed to prevent a secret price con- 
cession prohibited by this Code, and shall be applied accordingly. 



283 
Article X — Prices and Discounts 

Section 1. (a) Each member of the Industry shall file with the 
Code Authority, at its office, within ten days after the effective date 
of this Code schedules tabulating such member's list prices to retailers 
for all products of the mayonnaise industry sold by him and all 
discounts, delivery charges, if any, and terms of sale of any kind 
based upon such list prices for all sales by such member of the industry, 
including sales to wholesalers and retailers. The Code Authority 
shall make such schedules available to buyers as well as sellers 
without interpretation or comment. Revised schedules of prices, 
discounts, terms and conditions of sale may be filed from time to 
time thereafter with the Code Authority by any member of the 
industry to become effective five (5) days after the date of filing; 
provided however, that any other member of the industry may file 
revisions of his price schedules and discounts, terms and conditions 
of sale, which may become effective on the date when the revised 
price list or revised terms and conditions of sale first filed shall 
become effective. All schedules must conform to the provisions of 
this Code and all sales made by each member of the industry shall 
be at the prices and discounts then on file as effective by such member 
of the industry with the Code Authority, except as provided in the 
last paragraph of Section 3 of this article. 2 

(b) Every member of the industry shall publish or keep available, 
for the equal information of all trade buyers located in the same com- 
petitive markets, his schedules of prices, discounts and full terms 
of sale. 

Section 2. In establishing schedules of prices and discounts, every 
member of the industry may classify trade buyers upon a reasonable 
basis, including as grounds for classification distribution service ren- 
dered, trade area in which the trade buyers are located, and quantity 
of purchases made by various trade buyers of products of the mayon- 
naise industry, but all discounts shall be uniform for all trade buyers 
of the same class for products of the same grade, quality and quantity, 
and must be published. 

Section 3. No member of the industry shall engage in destructive 
price cutting. The term "destructive price Giifcti&g 9 ^ as used in this 
section, includes, but without limitation: 

(a) any offer or sale of a product of the industry below cost as 
determined in accordance with the principles of cost finding and/or 
estimating provided for in Article VI-B, Section 1, subdivision (g); 

(b) directly or indirectly charging a different price to trade buyers 
of the same quantity, who are located in the same competitive market 
and who are in the same class as to distribution service. 

However, it shall not be a violation of this Code for a member of 
the industry to sell in a particular locality or localities at the price of 
a competitor therein, provided that such latter price is not in violation 
of this Code ; nor shall it be a violation to dispose of distress merchan- 
dise at a price below cost, subject to rules and regulations of the Code 
Authority to be approved by the Administrator. 

Section 4. When the Code Authority determines that an emer- 
gency exists in this industry and that the cause thereof is destructive 
price-cutting such as to render ineffective or seriously endanger the 

1 See paragraph 2 of order approving this Code. 



284 

maintenance of the provisions of this Code, the Code Authority may 
cause to be determined the lowest reasonable cost of the products of 
this industry, such determination to be subject to such notice and 
hearing as the Administrator may require. The Administrator may 
approve, disapprove, or modify the determination. Thereafter, dur- 
ing the period of the emergency, it shall be an unfair trade practice 
for any member of the industry to sell or offer to sell any products of 
the industry for which the lowest reasonable cost has been determined 
at such prices or upon such terms or conditions of sale that the buyer 
will pay less therefor than the lowest reasonable cost of such products. 

When it appears that conditions have changed, the Code Authority, 
upon its own initiative or upon the request of any interested party, 
shall cause the determination to be reviewed. 

Section 5. No member of the industry shall offer or make a 
quantity price unless it is a genuine quantity price. The term 
"genuine quantity price", as used in this Section, means a price dif- 
ferential which is based upon and reasonably measured by a substan- 
tial difference in the quantity sold and delivered. 

Section 6. No member of the industry shall offer or make a dis- 
tribution service price unless it is a genuine distribution service price. 
The term "genuine distribution service price", as used in this Section, 
means a price differential which is based upon and reasonably meas- 
ured by a substantial difference in the distribution service rendered. 

Article XI — Trade Practices 

Section 1 . The following are declared to be unfair trade practices, 
and they are hereby prohibited: 

(a) Secret rebates, secret allowances or secret concessions of any 
kind, including rebates by way of special services, discounts, absorp- 
tion of transportation costs, or advertising allowances. Any and all 
rebates, allowances (except such allowances made in conformity with 
Section 3 of Article IX) and concessions of any kind not set forth in 
the schedule of prices, discounts, delivery charges and terms of sale 
filed with the Code Authority, and not published or kept available 
in accordance with the provisions of Section 1 (b) of Article X. 

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

(c) The giving, with shipments of any product of the industry, 
of premiums or coupons redeemable in money or merchandise and 
the giving of premiums of any and all sorts, free samples or free 
deals, provided that this Section shall not prevent the distribution 
direct to consumers of free samples of products of the industry in 
sizes smaller than standard containers plainly labeled as samples, and 
provided, further, that members of the industry who now have on 
hand premiums heretofore purchased by them for the purpose of 
distribution in connection with the sale of products of the industry, 
may continue to use the same in such connection until their present 
supply is exhausted, but in no event shall such use be continued after 
ninety (90) days after the effective date of this Code, and no pur- 
chases whatever of premiums of any kind shall hereafter be made 
by any member of the industry. 

(d) The giving of prizes, money, or coupons redeemable in money 
or merchandise to salesmen of trade buyers; provided, however, that 



285 

any member of the industry may conduct contests or distribute 
prizes among salesmen of a wholesaler who does not distribute any 
product of another member of the industry which competes with any 
product manufactured by the member of the industry first named 
in this proviso, if such contest or prize is not used to effect a reduction 
in a price schedule filed hereunder. 

(e) The inaccurate reference to competitors by falsely imputing to 
them dishonorable business conduct, inability to perform contracts, 
questionable credit standing, or by other false business representa- 
tions; or the disparagement of the grade or quality of their goods, 
with the tendency and capacity to mislead or deceive purchasers or 
prospective purchasers. 

(f) The false marking or branding of products of the industry, 
with the effect of misleading or deceiving purchasers with respect to 
the quantity, quality, grade or substance of the goods purchased. 

(g) The use of deceptive slack-filled or deceptively shaped con- 
tainers. 

(h) Withholding from, or inserting in, the invoice, statements 
which make the invoice a false record, wholly or in part, of the 
transaction represented on the face thereof. 

(i) The quotation of a fictitious price or the invoicing of a false 
price. 

(j) The making of any price statement or price representation 
which is false or fraudulent. 

(k) No member of the industry shall gi^e, 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 provisions of 
this Section 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 hereinabove 
defined. 

(1) The practice of compelling the purchase of several or a group 
of products as a condition to the purchase of one or more of them. 

(m) The shipping of products of the industry on consignment. 

(n) Guaranteeing a wholesale or retail customer against a decline 
in the market on floor stocks. 

(o) The publishing of advertising (whether printed, radio, display, 
or of any other nature) which is misleading or inaccurate in any 
material particular. 

Article XII — Modification 

Section 1. This Code and all provisions thereof are expressly 
made subject to the right of the President in accordance with the 
provisions of Section 10 (b) of the Act from time to time, to cancel 
or modify any order, approval, license, rule, or regulation issued under 
the Act. 

Section 2. This Code, except as to provisions required by the 
Act, may be modified or revised on the basis of experience, or changes 
in circumstances. The Code Authority shall make application to 
the Administrator for such modifications and revisions, when it 
deems necessary, and they shall become effective, after such notice 



286 

and hearing as the Administrator shall specify, on approval by the 
President. 

Article XIII — 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 XIV — Price Increases 

Whereas the policy of the Act to increase purchasing power will 
be made more difficult of consummation if prices of goods and serv- 
ices 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 XV — General 

Section 1. This Code shall be binding, as set forth in Title I, 
Section 3 (b) of the Act, upon all members of the Industry; but this 
Code shall not prevent an individual from pursuing the vocation of 
manual labor and selling or trading the products thereof. 

Section 2. Nothing contained in this Code shall constitute the 
members of the Code Authority, or the members of any Divisional 
Committee, partners for any purpose. Nor shall any member of the 
Code Authority, or of any Divisional Committee, be liable in any 
manner to anyone for any act of any other member, officer, agent or 
employee of the Code Authority or any Divisional Committee. Nor 
shall any member of the Code Authority or any Divisional Committee, 
exercising reasonable diligence in the conduct of his duties hereunder, 
be liable to anyone for any action or omission to act under this Code, 
except for his own wilful mis-feasance or non-feasance. 

Section 3. The Mayonnaise Industry, recognizing the value of 
uniform basic trade practice provisions for all food and grocery manu- 
facturing codes, pledges cooperation in securing the amendment of any 
trade practice provisions in this Code, which may be in conflict with 
trade practice provisions approved by the President or suggested by 
the Administrator for the entire food and grocery manufacturing 
industry. 

Section 4. This Code shall become effective on the tenth day after 
its approval by the President. 

Approved Code No. 349. 
Registry No. 146-1-01. 

O 



Approved Code No. 350 
CODE OF FAIR COMPETITION 

FOR THE 

TALC AND SOAPSTONE INDUSTRY 
As Approved on March 21, 1934 



ORDER 

Code of Fair Competition for the Talc and Soapstone Industry 

An application having been duly made pursuant to and in full com- 
pliance with the provisions of Title I of the National Industrial Re- 
covery Act, approved June 16, 1933, for approval of a Code of Fair 
Competition for the Talc and Soapstone Industry, and hearings hav- 
ing been duly held thereon and the annexed report on said Code, con- 
taining findings with respect thereto, having been made and directed 
to the President: 

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

Title of said Act ; and do hereby order that said Code of Fair Com- 
petition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
K. M. Simpson, 

Division Administrator. 

Washington, D.C., 

March 21, 1934. 

47765° 425-114 34 (287) 



REPOKT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The original code of Fair Competition for the Talc and Soap- 
stone Industry was submitted on August 28th, 1933, by the National 
Association of Talc and Soapstone Producers, an unincorporated 
membership society organized in 1933, representing in excess of 90% 
of the known members of Industry and 90% of the volume of pro- 
duction. Several revisions of the Code were made prior to the Public 
Hearing which was held on November 21, 1933. The Code was 
revised during the recess of this hearing and submitted in its present 
form for approval. Every person who requested an appearance was 
properly heard in accordance with statutory and regulatory require- 
ments. 

The terms Talc and Soapstone are used jointly in the definition of 
this Industry because Talc is present in varying amounts in all true 
substitutes, and because of their physical characteristics they have 
a common soapy feel. Talc and Soapstone, strictly speaking, are 
hydrated silicates of magnesium in varying proportions. Pyro- 
phillite is also included within the products of Industry. Because of 
its physical characteristics it closely resembles Talc in color, luster 
and feel and is employed as a substitute for many of its products. 

Talc, in commercial quantities occurs only in areas of highly crystal- 
line schists and other regional metamorphic rocks. The commercial 
deposits are confined chiefly to the Appalachian Mountain areas of 
the Atlantic States from New York to Georgia and to the mountainous 
belt of the Pacific Coast, notably in California and Washington. 

The uses of Talc are determined largely by its physical properties. 
Thus, its colloidal nature and its high retention make it valuable as a 
paper filler. It is also used as a filler in paint and other products. 
Its soapy feel and absence of grit render it peculiarly adaptable to the 
manufacture of toilet powders and cosmetics. Talc is employed com- 
mercially in many ways, but because of inherent differences in physical 
and chemical properties material from all deposits cannot be applied 
equally to all uses. 

Ground talc is used extensively as a filler in paint, paper, rubber, 
textiles and various other products. It is also employed for foundry 
facings, lubricants, and various toilet preparations, in ceramics and 
in glass making, and also as a polishing agent. Large quantities of 
Low grade talc are used in the manufacture of composition roofing. 
Off-color talc is consumed in increasing amounts for rock-dusting 
coal mines. 

Certain grades of talc, because of their electrical resistance, and 
remarkable property of hardening under heat treatment, are used 
in the manufacture of electrical fittings, as bushings, blocks, tubes, 
disks, etc., and are sold under the trade name of Lava Products. 
Massive talc is also used in the manufacture of crayons and pencils. 
95% of the total talc output is sold in pulverized form. 

(288) 



289 

The potentialities of the Industry are proportionate to the grade of 
talc produced and the rates of pay heretofore have been in the same 
proportion. The rates of pay which have been paid in the south 
have been as low as 7Kff per hour in the Georgia section, and 15f£ 
per hour has been a common rate of pay in Virginia. 

The Industry in general may be looked upon as a very minor activ- 
ity as evidenced by the fact that in 1931 there were 163,752 short 
tons, valued at $1,852,472 produced in the United States — more 
than half of the value of the talc mined in 1931 was produced in the 
State of New York. The financial status of the Industry is in a 
most precarious condition. The low wage rates in the South, under 
the terms of this Code, have been increased to 25^ per hour minimum 
for labor above ground, and 30^ per hour minimum for labor under- 
ground; and 35^ per hour minimum above ground and 40^ per hour 
minimum underground, in the North. The maximum of 40 hours 
per week as outlined in this Code, and the new minimum rates per 
hour for the Industry, as well as the provision for adjustment of 
wages above the minimum, should result in a further spreading of 
not only the available work among the workers, but also an increased 
consumer purchasing power. 

Article I. Purpose. — States the purpose of the Code. 

Article II. Definitions. — Accurately defines specific terms applica- 
ble to the Talc and Soapstone Industry as used in this Code. 

Article III. Hours.- — The maximum hours are limited to forty 
hours per week for employees engaged in the mining and processing 
of products and labor incident thereto, except that during six weeks in 
any six month period of any calendar year in order to meet seasonal 
peak demands, employees may be permitted to work not more than 
48 hours per week and not more than eight hours in any one day, with 
the proviso that time and one half shall be paid to any employee so 
employed for hours worked in excess of 40 hours per week or 8 hours 
per day. Office, salaried and other employees not covered by the 
above who receive less than $35.00 per week shall not be permitted 
to work in excess of 40 hours in any one week, except that they may be 
permitted to work 48 hours in any one week in any one month period. 
Watchmen shall be permitted to work either 84 hours in a two week 
period or 56 hours in a one week period, provided, such employees 
shall have at least one day's rest in every seven. Employees engaged 
in an executive, managerial or supervisory capacity who receive not 
less than $35.00 per week, and those engaged in emergency repairs or 
maintenance, where the safety of life, or health, or the protection of 
property demands longer hours, are not subject to hourly limitations. 
No employee shall be permitted to work more than six days in any 
seven day period. 

Article IV. The minimum wages for employees engaged in the 
mining and the processing of products or any labor incident thereto 
shall not be paid less than 40^ per hour underground and 35^ per hour 
above ground in the northern zone, and 30^ per hour underground and 
25 i per hour above ground in the southern zone. The minimum 
rates for female employees shall be 80% of the respective minimum 
above-ground rates for the northern and southern zones. No person 
employed in clerical or office work shall be paid less than at the rate 
of $15.00 per week, except that office boys and girls and messengers 
may be paid 80% of the established minimum for office employees. 



290 

The established minimum rate of pay for work performed for any pay 
period shall apply, irrespective of whether an employee is actually 
compensated on a time-rate, piecework or other basis. Provision is 
made for the employment of handicapped persons. Provision is also 
made for the adjustment of wages above the minimum fixed in this 
Code if such adjustment has not been made prior to the approval of 
this Code. 

Article V. General Labor Provisions. — Provides that no employer 
shall employ any person under 16 years of age, and that no person 
under 18 years of age shall be employed except in clerical, ofhee, sales, 
technical and engineering departments. This Article also sets forth 
mandatory provisions respecting the rights of employees to organize 
and bargain collectively. It also provides for matters having to do 
with reclassification of employees, standards for safety and health, the 
observance of state laws and the posting of complete copies of this 
Code so that they are accessible to employees. 

Article VI. Administration. — Establishes a Code Authority con- 
sisting of six members to be selected by a fair method of election so as 
to be truly representative of the Industry, subject to the approval of 
the Administrator. In addition to the six members above named there 
may be one or three representatives without vote, and without ex- 
pense to the Industry, to be appointed by the Administrator for such 
terms as he may specify. In addition to the organization of the Code 
Authority, the powers and duties thereof are outlined in this Article. 

Article VII. Marketing and Trade Practice Rules.— Sets forth 
Trade Practices for the Industry. 

Article VIII. Export Trade. — No provision of this Code relating 
to terms of selling, shipping or marketing shall apply to export trade, 
or sales or shipments for export trade or transactions in the foreign 
commerce of the United States. 

Article IX. Modification.— This Code and all the provisions thereof 
are expressly made subject to the right of the President in accordance 
with 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 said Act. 

Article X. Monopolies. — No provision of this Code shall be so 
applied as to permit monopolies or monopolistic practices or to elimi- 
nate, oppress, or discriminate against small enterprises. 

Article XI. Price Increases. — This Article indicates that the 
increase in selling prices, so far as possible, will be limited to actual 
increases in seller's costs. 

Article XII. Termination. — This Code and all supplementary 
provisions thereto shall expire on June 16, 1935, or at" the earliest 
date prior thereto on which it shall be declared that the emergency 
recognized by Title I of the Act has ended. 

Article XIII. Effective date— This Code shall become effective 
beginning ten days after its approval by the Administrator. 

The Deputy Administrator in bis 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 



291 

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 utiliza- 
tion of the present productive capacity of industries, by avoiding 
undue restriction of production (except as may be temporarily re- 
quired), by increasing the consumption of industrial and 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 
Sub-section (a) of Section 3, Sub-section (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant association 
is an industrial association truly representative of the aforesaid 
Industry, and that said association imposes no inequitable restric- 
tions on admission to membership therein. 

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

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

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

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
March 21, 1934. 



CODE OF FAIR COMPETITION FOR THE TALC AND 
SOAPSTONE 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 Talc and Soapstone Industry, and its provisions are the 
standards of fair competition for such Industry and are binding upon 
every member thereof. 

Article II — Definitions 

Wherever used in this Code or any supplement appertaining thereto, 
the terms enumerated in this Article shall have the meanings herein 
defined unless the context shall otherwise clearly indicate. 

Section 1. The term " President" means the President of the 
United States of America. 

Section 2. The term "Act" means Title I of the National Indus- 
trial Recovery Act. 

Section 3/ The term "Administrator" means the Administrator 
for Industrial Recovery. 

Section 4. The term "Talc and Soapstone Industry" or "Indus- 
try" as used herein means the mining and/or milling and/or shaping 
and/or sawing of talc and soapstone and/or the original sale of such 
industry products by a member of Industry either by himself or by 
his agent which includes without limitation any person or corporation 
occupying a subsidiary or controlling relationship or one of common, 
mutual or joint ownership or control with a member of Industry. 

(a) The term "Industry Products" as used herein includes crude 
talc and/or soapstone, crushed talc and/or soapstone, pulverized talc 
and/or soapstone, sawed and fabricated talc and/or soapstone, and 
for the purposes of this Code shall also include like products of 
talcose materials including pyrophyllite. 

Section 5. The term "Member of the Industry" includes anyone 
engaged in the Industry either as an employer or on his or its own 
behalf. 

Section 6. The term "Employee" means and includes anyone 
engaged in the Industry in any capacity receiving compensation for 
his services, irrespective of the nature or method of payment of such 
compensation, except a member of the Industry. 

Section 7. The term "Employer" means and includes anyone by 
whom any such employee is employed or compensated. 

Section 8. The term "Southern Zone" as used herein shall include 
the States of Virginia, Tennessee, North Carolina, Georgia and 
Alabama. 

Section 9. The term "Northern Zone" as used herein shall include 
all other territory of the United States except as defined in "Southern 
Zone". 

(292) 



293 

Section 10. The term "Association" as used herein means The 
National Association of Talc and Soapstone Producers, an unin- 
corporated membership society whose principal place of business is 
ocated at Chester, Vermont. 

Section 11. The term "Secretary" shall mean the Secretary- 
Treasurer of the National Association of Talc and Soapstone Producers. 

Article III — Hours of Labor 

Section 1. Maximum Hours. — On and after the effective date of 
this Code, no employee shall be permitted to work in excess of forty 
hours in any one week or eight hours in any twenty-four hour period 
except as herein otherwise provided. A normal work day shall not 
exceed eight hours. 

Section 2. Hours for Clerical and Office Employees. — On and after 
the effective date of this Code, no person employed in clerical or office 
work shall be permitted to work in excess of forty hours in any one 
week, except that during any one week in any one month period such 
employee shall be permitted to work a maximum of forty-eight hours 
in any such week. A normal work day shall not exceed eight hours. 

Section 3. Exceptions as to Hours. — The limitation as to hours of 
labor as specified in Sections 1, 2 and 4 of this Article III shall not 
apply to the following: 

(a) To employees engaged in emergency maintenance, or emergency 
repair work, involving breakdown or the protection of life or property ; 
provided, that in such special cases not less than one and one-half 
times the normal wage rate for any employee so employed shall be 
paid for all hours worked in excess of forty hours in any one week, 
or eight hours in any one day; provided, that this overtime provision 
shall not apply in cases of catastrophies involving loss of life or 
property. Such special cases, however, shall be reported to the 
Code Authority. 

(b) To persons engaged in a managerial, executive or supervisory 
capacity, who receive not less than $35.00 per week in the Northern 
Zone and not less than $30.00 per week in the Southern Zone, and to 
outside sales or service men. 

(c) To watchmen, who, according to the nature of their responsi- 
bilities, may be permitted to work not more than eighty-four hours 
in any two week period or fifty-six hours in any one week, provided 
that such employees shall have at least one day's rest in each seven 
day period. 

(d) To emplo} r ees engaged in the preparation, care and maintenance 
of machinery and production facilities, stock and shipping clerks, and 
truckmen engaged in outside delivery and pick-up service who may 
be granted a tolerance of 10% additional hours over the forty hours 
in any one week and may be permitted to work not more than forty- 
four hours in any one week. 

(e) To production employees, mechanical workers, or artisans who, 
during any period in which a concentrated demand upon any division 
of the Industry shall place an unusual and temporary burden for 
production work upon its facilities, or to meet seasonal, or peak 
requirements, or emergencies, may be permitted to work not more 
than forty-eight hours per week and not more than eight hours in 
any one day in not more than six weeks in six months of any calendar 

47765°— 425-114 34—2 



294 

year, provided that not less than time and one-half the normal rate 
shall be paid to any employee so employed for hours worked in excess 
of forty hours per week, or eight hours per day. All overtime worked 
in such peak periods shall be reported to the Code Authority. 

(f) To skilled workers in continuous processes, the interruption 
of which would unavoidably reduce production because of demands 
inherent and peculiar within the process itself, provided, however, 
that such employees in such cases shall not work more than forty- 
eight hours in any one week, and provided that in such special cases 
at least one and one-half times the normal wage rate shall be paid 
to any employee so employed for hours worked above forty hours 
per week. Provided that in cases where an employee is acting in 
temporary relief for a fellow employee in continuous processes the 
overtime provision hereinabove set forth shall not apply. Such 
special cases as set forth hereinabove shall be reported to the Code 
Authority. 

(g) To hoist men, power house men, or pump men; provided the 
total working hours of such employees shall not exceed forty-eight 
hours in any one week. 

Section 4. Standard Week. — No employee shall be permitted to 
work more than six days in any- seven day period. 

Section 5. Employment by Several Employers. — 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, or otherwise, exceeds the maximum 
permitted herein. 

Article IV — Wages 

Section 1. Minimum Wages. — On and after the effective date of 
this Code, no employee, except as herein otherwise specified, shall be 
paid in any pay period less than at the rate of 40c 7 per hour " under- 
ground" and 35^ per hour "above ground" in the Northern Zone 
and 30^ per hour " underground " and 25^ per hour "above ground" 
in the Southern Zone. The minimum rates for female employees 
shall be 80% of the above respective minimum "above ground" rates 
for the Northern Zone and Southern Zone. The minimum rates 
herein provided shall be construed as hiring rates applying to totally 
unskilled or common labor. Other classes of labor shall be com- 
pensated at rates above such minimum. Minimum wages which 
were in effect prior to date of approval of this Code, which were 
above the minimum specified shall in no case be reduced. 

Section 2. Clerical and Office Employees. — No accounting, clerical, 
sales or service employee working on a weekly basis in any office 
shall be paid less than at the rate of $15.00 per week; provided, how- 
ever, that office boys and girls and messengers may be paid at a rate 
not less than 80% of such minimum; and provided further that the 
number of such boys and girls and messengers so paid shall constitute 
not more than 5% of the total number of such employees of any office 
of any one employer, but in any case each employer shall be entitled 
to at least one such employee. 

Section 3. Piecework Compensation — Minimum Wages. — This Ar- 
ticle establishes a minimum rate of pay for any pay period which shall 
a Pply>. irrespective of whether an employee is actually compensated 
on a time-rate, piecework, or other basis. 



295 

Section 4. Female Employees. — Female employees performing sub- 
stantially the same work as male employees shall receive the same 
rate of pay as male employees, and when they displace male employees 
they shall receive the same rate of pay as the men they displace. 

Section 5. Wages Above the Minimum. — Within 60 days from the 
date of approval of this Code an adjustment of wages above the 
minimum provided in this Code shall be made by employers who 
have not heretofore made such adjustment. Such adjustment shall 
mean that differentials in compensation between employees receiving 
the minimum wage and employees above the minimum wage existing 
prior to the date of approval of this Code shall be maintained; pro- 
vided, however, that in no event shall rates of pay be reduced. Each 
member of the Industry shall make a report of such adjustment 
whether made prior to or subsequent to date of approval of this 
Code, to the Code Authority. 

Section 6. Handicapped Persons. — A person whose earning capac- 
ity 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 by this Code, if the employer obtains from the state 
authority, designated by the United States Department of Labor, a 
certificate authorizing such person's employment at such wages and 
for such hours as shall be stated in the certificate. Such authority 
shall be guided by the instructions of the United States Department 
of Labor in issuing certificates to such persons. Each employer shall 
file monthly with the Code xluthority a list of all such persons em- 
ployed by him, showing the wages paid to, and the maximum hours 
of work for such employee. 

Section 7. Payment of Wages. — An employer shall make payment 
of all wages in lawful currency or by negotiable check therefor payable 
on demand. These wages shall be exempt from any payments for 
pensions, insurance, or sick benefits other than those voluntarily paid 
by the wage earners, or required by State Laws. Pay periods for 
wages shall be at least semi-monthly, and for salaries at the end of 
every month. Employers shall agree not to withhold wages. 

Article V — General Labor Provisions 

Section 1. Child labor. — On and after the effective date of this 
Code, no person under 18 years of age shall be employed in the Talc 
and Soapstone Industry except in clerical, office, sales, service, tech- 
nical and engineering departments, and no person under 16 years of 
age shall be employed in any capacity. In any state an employer 
shall be deemed to have complied with this provision as to age of 
employees if he shall have on file a certificate or permit duly signed 
by the Authority of such state empowered to issue employment or 
age certificates or permits showing that the employee is of the required 
age. 

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



296 

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

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

Section 3. Reclassification of Employees. — No employer shall 
reclassify employees or duties of occupations performed, or engage in 
any other subterfuge for the purpose of defeating the purposes or 
provisions of the Act or of this Code. 

Section 4. Standards for Safety and Health. — Every employer 
shall make reasonable provision for the safety and health of his 
employees at the place and during the hours of their employment. 
Standards for safety and health for this Industry shall be submitted 
to the Administrator by the Code Authority within six months after 
approval of this Code. 

Section 5. State Laws. — No provision in this Code shall supersede 
any State or Federal Law which imposes on employers more stringent 
requirements as to age of employees, wages, hours of work, or as to 
safety, health, sanitary or general working conditions, or insurance, 
or fire protection, than are imposed by this Code. 

Section 6. Posting. — All employers shall post and keep posted 
complete copies of this Code, and all amendments thereto, in con- 
spicuous places accessible to employees. 

Section 7. Company Town and Stores. — Employees other than 
maintenance or supervisory men, or those necessary to protect prop- 
erty, shall not be required as a condition of employment, to live in 
homes rented from the employer. No employee shall be required, 
as a condition of employment, to trade at a store owned or specified 
by an employer. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

Section 1. Organization and Constitution. — A Code Authority to 
administer this Code is hereby constituted and shall consist of six 
members. Five of such members shall be voting members. Two of 
such voting members shall be selected by members of the Industry 
in the Southern zone to represent such zone, and shall be truly repre- 
sentative of the members of the Industry in such zone. Two such 
voting members shall be selected by members of the Industry in the 
Northern zone by members of the Industry in such zone and shall be 
truly representative of the members of the Industry in such zone. 
One other such member shall be selected by the members of the entire 
Industry, and shall be representative of the Industry as a whole. 
The Secretary-Treasurer of the National Association of Talc and 
Soapstone Producers shall be Secretary and a non-voting member of 
the Code Authority. The election of all members to the Code Au- 
thority shall be by a fair and equitable method of selection to be 
approved by the Administrator. The Code Authority shall make 
investigations as to the functioning and observance of any of the 
provisions of this Code at its own instance or upon the complaint 
of any person affected, and shall report the result thereof to the 
Administrator. 



297 

Section 2. In addition to the above membership there may be not 
more than three additional members, without vote and without 
expense to the Industry to be appointed by the Administrator to serve 
for a six month or a twelve month term from date of appointment as 
he may specify. 

Section 3. Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Code Authority shall, 
(1) impose no inequitable restrictions on membership, and (2) submit 
to the Administrator true copies of its Articles of Association, By- 
Laws, Rules and 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. 

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 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 appro- 
priate modification in the method of selection of the Code Authority. 

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 assenting to and 
complying with the requirements of this Code and sustaining their 
reasonable share of the expenses of its administration. Such reason- 
able share of expenses of administration shall be determined by the 
Code Authority, subject to review by the Administrator, on the basis 
of volume of business and/or such other factors as may be deemed 
equitable. 

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 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. 

Section 7. Powers and Duties. — Subject to such rules and regu- 
lations as may be issued by the Administrator, 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. If the Administrator shall determine at any time 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 
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 disapprove after thirty days' notice to him of intention to 
proceed with such action in its original or modified form. 

(a) To insure the execution of the provisions of this Code and pro- 
vide for the compliance of the Industry with the provisions of the 
Act subject to such rules and regulations as the Administrator may 
prescribe. 



298 

(b) TV adopt By-Laws and Rules and Regulations for its procedure 
and for the administration and enforcement of the Code. The Code 
Authority shall promptly furnish to the Administrator true copies 
of the By-Laws, Rules and Regulations adopted pursuant to this 
paragraph. 

(c) To obtain from members of the Industry through a confidential 
agency such statistical information and reports as are required for the 
administration of the Code and to provide for submission by members 
of the Industry of such statistical 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 of the Industry to such Federal and State agencies as the 
Administrator may designate; provided, that nothing in this Code 
shall relieve any member of the Industry of any existing obligations 
to furnish reports to any government agency. No individual reports 
shall be disclosed to any other member of the Industry or any other 
party except to such governmental agencies as may be directed by the 
Administrator. 

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

(e) To make recommendations to the Administrator for the coordi- 
nation of the administration of this Code with such other Codes, if any, 
as may be related to the Industry. 

(f) To cooperate with the Administrator in regulating the use of 
any NRA insignia solely by those members of the Industry who have 
assented to, and are complying with, this Code. 

(g) To recommend to the Administrator further fair trade practice 
provisions to govern members of the Industry in their relations with 
each other or with other Industries, and concerning control of pro- 
duction through voluntary agreement and to recommend to the Ad- 
ministrator measures for Industrial planning, including stabilization 
of employment. 

(h) 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 principles of such 
methods. 

Article VII — Marketing and Trade Practice Rules 

Section 1. Price Schedule. — (a) Each member of the Industry 
within twenty days after the effective date of this Code shall file 
with the Code Authority the price or prices and terms and conditions 
of sale at which he is offering his products for sale, which products are 
in direct or indirect competition with other members of the Industry; 
this original filing to become effective on the date of such filing. 
The Code Authority forthwith on such original filing shall notify all 
known members of the Industry of the contents thereof and shall 



299 

make the same available to the trade. Any member of the Industry 
desiring to change the price or prices of his products and terms and 
conditions of sale shall notify the Code Authority of such intention by 
filing his revised schedule, which shall become effective immediately 
thereafter and shall be distributed to the known members of the 
Industry and be made available to the trade. 

(b) Such price schedules shall include terms of payment, length of 
bookings, or contracts and f.o.b. point of origin and such other pro- 
visions as may be necessary to fully inform the trade of all conditions 
of sale. 

(c) The Code Authority shall prescribe rules and regulations pro- 
viding for the sale of distress merchandise, surplus inventories, 
products not up to specification, and to meet the competition of 
other materials competitive with the products of this Industry, 
which shall become effective upon approval by the Administrator. 
No member of the Industry shall sell any goods of any of the classes 
above described for the purpose of violating the provisions of this 
Code or of defeating the purposes of the Act, except in full compli- 
ance with such rules and regulations. 

Section 2. Trade Practice Rules. — The following trade practices 
are declared to constitute methods of unfair competition between 
members of the Industry, and no member of the Industry shall use 
or engage in any of them, directly or indirectly, through any officer, 
agent, or employee. Engaging in any one of such trade practices or 
of any other practices which hereafter may be declared to be unfair 
methods of competition by the Code Authority, approved by the 
Administrator, shall be deemed a violation of this Code. 

(a) Failing to file price schedules or changes therein, as required by 
Section 1 of this Article. 

(b) Selling of any Industry product by a Member of the Industry 
at a price below the open, filed or publicly announced price schedules 
of such member, or to deviate from the conditions of sale contained 
in such schedules filed pursuant to Section 1 of this Article. 

(c) Selling products of the Industry below cost of production as 
determined pursuant to Sub-Section (h) of Section 7 of Article VI; 
provided, however, that a member of the Industry shall be permitted 
to file prices and sell at such filed rates in order to meet the filed prices 
of a competitor, and provided further that sales necessary to meet the 
competition of other materials with Talc and Soapstone, or sales 
necessary in order to dispose of distress merchandise, may be made at 
other than filed prices pursuant to the provisions of Section 1 (c) of 
this Article VII. Full information concerning such sales shall be 
reported to the Code Authority and shall be given to all members of 
the Industry. 

(d) Paying or allowing rebates, refunds, commissions, credits or 
unearned discounts, whether in the form of money or otherwise, or 
the extension of special services or privileges to certain purchasers 
which are not extended to all purchasers under similar circumstances, 
for the purpose or with the effect of violating the provisions of this 
Code. 

(e) Pre-paying freight charges with the intent or effect of granting 
discriminatory credit allowance. 

(f) Allowing in any form, adjustments, discounts, credits or 
refunds for the purpose or with the effect of altering retroactively the 
price quoted, in such manner as to create price discrimination. 



300 

(g) Pre-dating or post dating any invoice or sales contract, except 
to conform to a bona fide agreement entered into on the pre-date. 

(h) Repudiating a contract entered into in good faith when the 
purpose or effect of such repudiation is to create an unfair price 
advantage for a member of the Industry. 

(i) Inducing or attempting to induce the breach of an existing 
contract between a competitor and his customer or source of supply; 
or interfering with or obstructing in any manner the performance of 
the contractual duties or services of another. 

(j) Requiring that the purchase or lease of any products or equip- 
ment be a prerequisite to the purchase or lease of any other products 
or equipment. 

(k) Procuring, otherwise than with the consent of any member of 
the Industry, any information concerning the business of such member 
which is properly regarded by it as a trade secret or held as confidential 
within its organization, other than information relating to the viola- 
tion of any provision of this Code. 

(1) Knowingly shipping a lower grade of material than is described 
in the contract or order. 

(m) Deviating from the published and previously established 
specifications, for the purpose of influencing a customer or prospective 
customer. 

(n) Selling through any agent other than an exclusive agent, when 
an exclusive agency exists, without the consent of such exclusive 
agent, or selling or attempting to sell through more than one agent, 
except with the full knowledge of each agent. 

(o) Making any contract with a purchaser to protect such pur- 
chaser against a decline in price. 

(p) Knowingly publishing advertising, whether printed, radio, 
display or otherwise, which is misleading or inaccurate in any material 
particular; or misrepresenting any goods or products of the Industry 
as to use, trade-mark, grade, quality, quantity, origin, size, substance, 
character, nature, finish, material, content, preparation, or making 
any misrepresentation as to credit terms, values, policies, services or 
the nature or form of the business conducted. 

(q) Branding, marking or packing any goods or products in any 
manner, which is intended to or does deceive or mislead purchasers 
with respect to brand, or trade-mark, grade, quality, quantity, origin, 
size, substance, character, nature, finish, material, content, or prep- 
aration of such goods or products. 

(r) Knowingly publishing advertising which refers inaccurately in 
any material particular to any competitors or their goods, prices, 
values, credit terms, policies or services. 

(s) Knowingly withholding from, or inserting in any quotation or 
invoice, any statement which makes it inaccurate in any material 
particular. 

(t) Publishing or circulating unjustified or unwarranted threats of 
legal proceedings, having the effect of harassing competitors or 
intimidating their customers. 

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



301 

employer, principal, or party. This commercial bribery provision 
shall not be construed to prohibit free and general distribution of 
articles commonly used for advertising except so far as such articles 
are actually used for commercial bribery as hereinabove defined. 

Article VIII— Export Trade 

No provision of this Code relating to terms of selling, shipping, or 
marketing shall apply to export trade or sales or shipment for export 
trade, or transactions in the foreign commerce of the United States. 

Article IX— 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 
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 
said Act, and specifically, but without limitation, to the right of the 
President to cancel or modify his approval of this Code or any condi- 
tions imposed by him upon his approval thereof. 

2. Such of the provisions of this Code as are not required to be in- 
cluded therein by the Act may, with the approval of the Administrator 
be amended as provided in Section 3 hereof, in such manner as may 
be indicated by the needs of the public, by changes in circumstances, 
or by experience; all the provisions of this Code, unless so modified or 
eliminated, shall remain in effect until the expiration date of Title I 
of the Act. 

3. An amendment may be proposed by any interested party either 
to the Code Authority or directly by or to the Administrator. All 
proposed amendments shall be referred to the Code Authority, who 
shall give members of the Industry an opportunity to be heard 
thereon, and thereafter the Code Authority may make such recom- 
mendations thereon as is deemed proper, provided, however, that 
when approved by the Administrator as necessary to effectuate the 
policies of the Act, after such notice and hearing as he may prescribe, 
any proposed amendment shall thereupon become effective as a part 
of this Code. 

4. The Code Authority may make recommendations for modifica- 
tions of this Code to the administration which shall become effective 
as a part of this Code, upon approval by the Administrator, after 
such notice and hearing as he may prescribe. 

Article X — Monopolies 

No provision of this Code shall be so applied as to promote 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 more difficult of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price in- 
creases except such as may be required to meet individual cost should 



302 

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 — Termination 

This Code and all supplementary provisions thereto shall expire on 
June 16, 1935, or on 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 
Act has ended. 

Article XIII — Effective Date 

This Code shall become effective beginning ten (10) days after its 
approval by the Administrator. 

Approved Code No. 350. 
Registry No. 1039-10. 

O 



Approved Code No. 351 
CODE OF FAIR COMPETITION 

FOR THE 

QUICKSILVER INDUSTRY 

As Approved on March 21, 1934 



ORDER 



Code of Fair Competition for the Quicksilver 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 Quicksilver Industry, and hearings having 
been duly held thereon and the annexed report on said Code, contain- 
ing findings with respect thereto, having been made and directed to 
thp i T*pmnPTit" 

NOW, THJEREFORE, 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: 
K. M. Simpson, 

Division Administrator. 

Washington, D.C., 

March 21, 1934. 



47766° 425-113 34 (303) 



REPORT TO THE PRESIDENT 

The President, 

The White Home. 

Sir: The original Code of Fair Competition for the Quicksilver 
Industry was submitted August 3, 1933, by the National Quicksilver 
Producers Association, an unincorporated membership society organ- 
ized in 1933, representing 95% of the known members of the Industry 
in volume of production. Several revisions of the Code were made 
prior to the public hearing held on February 2nd, 1934. The Code 
was revised during the recess of this hearing and submitted in its final 
form for approval. Every person who requested an appearance was 
properly heard in accordance with statutory and regulatory require- 
ments. 

The history of the mercury industry in the United States has 
indicated considerable flexibility both in supply and demand under 
the influence of price. When the price of mercury became high, 
production tended to increase and consumption to fall. For many 
years before 1915 the price of mercury at New York rarely exceeded 
$50.00 and was generally below $40.00 a flask (76 pounds). 

In the United States in 1869 the average yearly price was $46.00 a 
flask (76 pounds). B} T the latter part of 1873 the price had risen to 
$105.00 a flask. This was due in part to the decline of production 
and the advent of pan-amalgamation of gold which increased the 
domestic demand. During the next two years, with the decline of 
placer gold production, the price receded, but owing to the high price 
of 1873 and 1874 many new enterprises were started which came into 
production during the next four years, and by 1877, the peak of domes- 
tic production — 79,000 flasks — was reached, and the price had receded 
to $37.00 a flask. In 1883 in order, no doubt, to maintain and assist 
a waning industry, a tariff was placed upon mercury amounting to 
10% ad valorem. From that time a tariff has been maintained at 
varying rates. In 1909 the tariff was seven cents per pound, and in 
1913 it was changed again to 10% ad valorem. During the War, with 
the greatly stimulated price, domestic production was slightly in 
excess of 3(5,000 flasks. In 1923 domestic production was about 8,000 
flasks, and imports amounted to 24,000 flasks. The average New York 
price in 1921 was $45.00 a flask. The Tariff Act of 1922 raised the 
duty to twenty -five cents a pound, but the effect upon production for 
the next few years seems to have been negligible. Possibly owing to 
the belief that mercuiy mines were exhausted in the United States, as 
well as to the fact that the production of Spain and Italy dominated the 
world's market, these governments made an agreement to control 
production ; production was pooled and sales made through a common 
agency. The cartel advanced the price from $70.00 to $125.00 a flask. 

Prior to the organization in 1928 of Mercurio Europeo, the Spanish- 
Italian cartel, the United States imported % or more of its mercury 
supplies from Europe, chiefly from Spain and Italy. In spite of the 

(304) 



305 

depression the cartel was able to maintain high prices for several 
years which stimulated production and use of American Mercury in 
the United States and temporarily reversed the proportions of foreign 
and domestic metal used in this country. Inability to restrict 
Spanish-Italian production, however, resulted in the accumulation of 
large stocks abroad, winch coupled with the disposition of buyers to 
withhold commitments in an uncertain market broke the price con- 
trol and sent prices below the level of American cost of production and 
sharply curtailed production even in the face of a duty of $19.00 per 
flask. The New York price of mercury declined from a high of $130.50 
per flask in October, 1928, to $110.60 in October, 1930 and to $48.50 
in December, 1932. As most American mines must receive at least 
from $60.00 to $70.00 per flask to operate, suspension of mining re- 
duced United States production to 12,622 flasks in 1932 compared 
with 24,947 in 1931 and 21,553 in 1930, and our temporary position 
as an exporter was lost. 

The mercury industry of the United States is broadly 83 years old. 
The history indicates a cycle of production. In 1850, commercial 
production of mercury was started. As indicated in 1877, the peak 
of all time domestic production of 79,000 flasks was reached. Not 
only was the United States self-sufficient, but produced a large ex- 
portable surplus. Since that time, under various legislative enact- 
ments and at various price levels, the domestic production has been a 
decreasing one. In other words, among the several points brought 
out by the history of the domestic production of mercury, are the 
exhaustion of the reserves of the country at various price levels; the 
temporary effect of a tariff; the lack of effect of a subsequent increase of 
two and one-half times the original tariff; the exhaustion of reserves 
by the artificial pegging of the price by foreign producers. 

According to the last decennial census of the Bureau of the Census, 
the number of miners employed in the mercury industry in the United 
States was slightly over one thousand. In 1930, broadly, slightly 
more than 85% of the domestic requirements was the product 
of domestic mines. It may therefore be assumed that were other 
things equal, should the domestic supply be met by domestic pro- 
duction, it would mean that slightly over 1,300 men might be em- 
ployed. In 1930, the average price per flask at New York was $115.01. 
The present domestic price is $67,538. If the immediate future 
trends of an industry can be judged by a study of past performance, 
it would seem that in the case of mercury in order to repeat the 
history of 1930, a price in excess of $130.00 per flask would be required. 
A fact that should be given consideration is that in the past, as has 
been stated, the domestic reserves of mercury have been drawn on 
at various price levels and in many cases exhausted at the then 
existing price. It therefore, becomes evident that if prices were 
restored to the high levels of the past, the equivalent production could 
not in the future be duplicated unless technology had supplied a 
means of greatly reducing the cost of production, thus making com- 
mercially available material of extremely low-grade. 

Production of mercury is confined to eight states and Alaska. Of 
the 1929 production of 23,682 flasks (76 pounds), California supplied 
43%, Nevada 20%, Oregon 15%, Washington 6% and Texas, Arizona 
and Alaska the remaining 16%. 



306 

From 1922 to 1931, inclusive, the apparent domestic consumption 
of mercury ranged between 20,500 flasks (1931) and 38,500 flasks 
(1926). Our position has been and is that of an importer and any 
variations therefrom in the past decade have been of temporary 
duration. Foreign ores are richer than ours and production costs are 
lower. 

Because of the great decline in the production of domestic mercury 
for reasons of decreased demand because of depression, plus the 
influence of the European cartel, the American Quicksilver Industry 
has been in a very depressed and chaotic state. The Industry has 
degraded to the point of almost not being an Industry in accordance 
with our definition for Industry under the terms of the Act. Because 
of mercur}^ occupying a very prominent position in the list of emer- 
gency War materials for the use of making fulminates, and the more 
recent industrial demand for Mercury Vapor Boilers, and the hope 
that protection can be given the domestic industry by way of curbing 
"dumping" of distressed cartel mercury on the American market, the 
application of a Code of Fair Competition for the Quicksilver Industry 
has been allowed: 

Article I. Purpose. — States the purpose of the Code. 

Article II. — Definitions. Accurately defines specific terms appli- 
cable to the Quicksilver Industry as used in this Code. 

Article III. Hours. — The maximum hours are limited to forty 
hours per week for employees engaged in the mining and processing 
of products and labor incident thereto. Watchmen, according to the 
nature of their responsibilities may be permitted to work either 
eighty-four hours in any two week period or forty-eight hours in any 
one week period. Office, salaried and other employees not covered 
by the above who receive less than $35.00 per week shall not be 
permitted to work in excess of forty hours in any one week except 
that during any one week in any one month period they may be 
permitted to work forty-eight hours in such week. Employees 
engaged in an executive, managerial or supervisory capacity who 
receive not less than $35.00 per week and employees other than those 
engaged in processing or labor operations directly incident thereto 
are not subject to any hourly limitations. The maximum hours 
shall not apply in cases of emergencies or repairs where the safety of 
life or health or the protection of property necessitates longer hours. 

A 10% tolerance over the forty hour maximum is allowed to 
employees engaged in the preparation, care and maintenance of 
machinery and production facilities, stock and shipping clerks and 
truckmen engaged in outside delivery and pick-up service. The 
limitation as to hours of a twenty-four hour day shall not apply in 
such cases where the restriction of hours of labor of highly skilled 
workers in continuous process would unavoidably reduce production. 
No employee shall be permitted to work more than six days in any 
seven day period. 

Article IV. Wages. — The minimum wage for employees engaged 
in mining and the processing of products or any labor incident thereto 
is at the rate of 42 ^ per hour, with the proviso that in the Southern 
district the minimum rate for such labor shall not be less than 30^ 
per hour. Such minimum rates are to apply to totally unskilled and 
common labor. No person engaged in clerical or office work shall be 
paid less than at the rate of $15.00 per week except that office boys 



307 

and girls may be paid a minimum of 80% of the established minimum 
for office employees. The established minimum rate of pay in 
Article IV, Section 1, shall apply irrespective of whether an employee 
is actually compensated on a time rate, piece rate or other basis. 
Provision is made lor the employing of handicapped persons. Pro- 
vision is also made for commissary employees who shall be paid not 
less than 80% of the minimum wage provided for in Article IV, 
Section 2. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees. Provision is also made for the adjustment of wages above 
the minimum. 

Article V. General Labor Provisions. — Provides that no employer 
shall employ any person under 18 years of age. This Article also sets 
forth mandatory provisions respecting the rights of employees to 
organize and bargain collectively. This Article also provides for 
matters having to do with reclassification of employees, standards 
for safety and health, the observance of State Laws, the posting of 
complete copies of the Code and the matter of Company Towns and 
Stores and the payment of wages. 

Article VI. Establishes a Code Authority consisting of pine 
members, five of whom shall be selected from the Executive Committee 
of the National Quicksilver Producers Association, one of such mem- 
bers shall be the Secretary of the Association and two such members 
shall be members of the Industry selected by the Association, and one 
other such member shall represent the nonmembers of the Association. 
In addition to the nine members named above, there may be one or 
three representatives, without vote, to be appointed by the Admin- 
istrator to serve without expense to the Industry for such terms as he 
may specify. In addition to the organization of the Code Authority, 
the Powers and Duties thereof are also outlined in this Article. 

Article VII. Marketing and Trade Practice Rules.— This Article 
sets forth an open price schedule and trade practices for the Industry. 

Article VIII. Export Trade. — No provision of this Code relating to 
terms of selling, shipping or marketing shall apply to export trade or 
sales or shipments for export trade. 

Article IX. Modifications.— This Code and all the provisions 
thereof are expressly made subject to the right of the President in 
accordance with 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 said Act. Provision is also made for recommendations 
to the Administrator for modifications of this Code by any interested 
party or by the Code Authority. 

Article X. Monopolies. — No provision of this Code shall be so 
applied as to permit monopolies or monopolistic practices or to elimi- 
nate, oppress or discriminate against small enterprises. 

Article XL Effective Date.— This Code shall become effective 
ten days after its approval by the Administrator. 

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 



308 

commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of Indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practices, by promoting the fullest possi- 
ble utilization of the present productive capacity of Industries, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating Industry. 

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

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitatioo 
Sub-section (a) of Section 3, Sub-section (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, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
March 21, 1934. 



CODE OF FAIR COMPETITION FOR THE QUICKSILVER 

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 Quicksilver Industry, and its provisions are the standards of 
fair competition for such Industry and are binding upon every member 
thereof. 

Article II — Definitions 

Wherever used in this Code or any supplement appertaining thereto, 
the terms enumerated in this Article shall have the meanings herein 
defined unless the context shall otherwise clearly indicate. 

Section 1. The term " President" means the President of the 
United States of America. 

Section 2. The term "Act" means Title I of the National Indus- 
trial Recovery Act approved by the President, June 16, 1933, and any 
amendment thereto. 

Section 3. The term "Administrator" means the Administrator 
for Industrial Recovery. 

Section 4. The term "Industry" as used herein means the mining 
of and/or processing of ores in which quicksilver (mercury) represents 
the principal recoverable constituent and/or the sale of any mercury 
by such producer or processor which includes without limitation any 
person or corporation keeping a subsidiary or controlling relationship 
or one of joint ownership with any such producer and/or processor. 

Section 5. The term "Member of the Industry" includes all those 
engaged in the Industry, either as an employer or on his or its own 
behalf. 

Section 6. The term "Employee" means and includes anyone 
engaged in the Industry in any capacity receiving compensation for 
his services, irrespective of the nature or method of payment of such 
compensation, except a member of the Industry. 

Section 7. The term "Employer" means anyone by whom any 
such employee is employed or compensated. 

Section 8. The term "Flask" as used herein means a standard 
container for quicksilver containing 76 net pounds avoirdupois of 
quicksilver. 

Section 9. The term "Executive Committee" as used herein 
means the Executive Committee of the National Quicksilver Pro- 
ducers Association. 

Section 10. The term "Secretary" means the Secretary of the 
National Quicksilver Producers Association. 

Section 11. The term "Southern District" as used herein means 
the States of Texas, Arkansas, Louisiana, Mississippi, Tennessee and 
Alabama. 

47706° 425-113 34 2 (309^ 



310 
Article III — Hours of Labor 

Section 1. Maximum Flours. — On and after the effective date of 
this Code, no employee shall work or be permitted to work in excess 
of forty (40) hours in any one week or eight (8) hours in any twenty- 
four (24) hour period, except as herein otherwise provided. A 
normal work day shall not exceed eight (8) hours. 

Section 2. Hours For Clerical And Office Employees. — On and 
after the effective date of this Code no person employed in clerical or 
office work shall be permitted to work more than an average of forty 
(40) hours per week during any one month period, nor more than 
forty-eight (48) hours in any one week. A normal work day shall 
not exceed eight (8) hours. 

Section 3. Exception as to Hours. — The limitation as to hours of 
labor, as specified in Sections 1, 2 and 4 of this Article III, shall not 
apply to the following: 

(a) To employees engaged in emergency maintenance or emergency 
repair work, involving breakdown, or the protection of life or property; 
provided that in any such special cases at least one and one-half (1%) 
times the normal wage rate for any employee so employed shall be 
paid for all hours worked in excess of the forty (40) hours in any one 
week or eight hours in any one day ; provided that this overtime pro- 
vision shall not apply in cases of catastrophes involving loss of life. 
Such special cases, however, shall be reported to the Code Authority. 

(b) Nor to outside sales or sales service men; nor to persons in a 
managerial, executive or supervisory capacity who receive not less 
than $35.00 per week; 

(c) Nor to watchmen who, according to the nature of their respon- 
sibilities, may be permitted to work either eighty-four (84) hours in 
any two-week period; or forty -eight (48) hours in any one-week 
period, provided such employees shall have at least one day's rest in 
each seven day period; 

(d) There may be a tolerance of 10% additional hours over the 
forty (40) hours in any one week for employees engaged in the prep- 
aration, care and maintenance of machinery and production facilities, 
stock and shipping clerks, and truckmen engaged in outside delivery 
and pick-up service; provided, however, that at least one and one 
half (1)0 times the normal wage rate for any emplo3'ee so employed 
shall be paid for all hours worked in excess of eight (8) hours per day 
or forty (40) hours in any one week; 

(e) The limitation as to hours of a twenty-four (24) hour day shall 
not apply to such cases where restrictions of hours of labor of highly 
skilled workers in continuous processes would unavoidably reduce 
production, provided, however, that such employees in any such 
special cases shall not work more than forty-eight (48) hours in any 
one week; and provided that in such special cases at least one and one 
half (1)0 times the normal wage rate for any employee so employed 
shall be paid for all hours worked in excess of eight (8) hours per day 
or forty (40) hours in any one week. 

Section 4. Standard Week. — No employee shall be permitted to 
work more than six days in any seven-day period. 

Section 5. Employment By Several Employers. — No employer shall 
knowingly permit any emploj'ee to work for any time, which, when 
totaled with that already performed with another employer or em- 



311 

plovers in this Industry or any other Industry, exceeds the maximum 
permitted herein. 

Article IV— Wages 

Section 1. Minimum Wages. — On and after the effective date of 
this Code no employee, except as herein otherwise specified, shall be 
paid in any pay period less than at the rate of 42^ per hour; provided, 
however, that in the Southern District the minimum rate that shall 
be paid in any pay period shall be 30^ per hour. 

Section 2. Clerical and Office Employees. — No accounting, clerical, 
office, sales or service employee working on a weekly basis in any 
office shall be paid less than at the rate of fifteen ($15.00) dollars per 
week; provided, however, that office boys and girls and messengers 
shall be paid at a rate not less than 80% of the minimum hereinabove 
specified; and provided further that the number of such boys and 
girls and messengers so paid shall constitute not more than 5% of the 
total number of such employees of any office of any one employer, 
but in any case each employer shall be entitled to one such employee. 

(a) Commissary employees, excluding cooks, shall be paid not less 
than 80% of the minimum wage ($15.00) provided for in Section 2 of 
this Article, and provided further that the total number of such com- 
missary employees so paid shall constitute not more than 5% of the 
total number of employees in any camp, but in each case such 
employer shall be entitled to two such employees. 

piecework compensation 

Section 3. Minimum Wages. — This Article establishes a minimum 
rate of pay for any pay period which shall apply, irrespective of 
whether an employee is actually compensated on a time rate, piece- 
work, or other basis. 

Section 4. Female Employees. — Female employees performing sub- 
stantially the same work as male employees shall receive the same 
rate of pay as male employees, and, when they displace male em- 
ployees they shall receive the same rate of pay as the men they 
displace. 

Section 5. Wages Above The Minimum. — Equitable adjustments 
above the minimum in all pay schedules of employees shall be made 
within thirty (30) days after the effective date of this Code by any 
employer who has not heretofore made such adjustments under the 
National Industrial Recovery Act. In no event, however, shall 
hourly rates be reduced. Within sixty (60) days after the effective 
date of this Code each Member of this Industry shall make a report 
of such adjustment whether made prior to or subsequent to date of 
approval of this Code to the Code Authority. 

Section 6. Handicapped Persons. — A person whose earning capacity 
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 by this Code, if the employer obtains from the State 
Authority, designated by the United States Department of Labor, a 
certificate authorizing such person's employment at such wages and 
for such hours as shall be stated in the certificate. Such authority 
shall be guided by the instructions of the United States Department 
of Labor in issuing certificates to such persons. Each employer shall 
file monthly with the Code Authority a list of all such persons em- 



312 

ployed by him, showing the wages paid to, and the maximum hours of 
work for such employee. 

Article V — General Labor Provisions 

Section 1. Child Labor. — On and after the effective date of this 
Code, no person under eighteen (18) years of age shall be employed in 
the Industry. In any State an employer shall be deemed to have 
complied with this provision as to age of employees 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. Provisions From The Act. — (a) Employees shall have 
the right to organize and bargain collectively through representatives 
of their own choosing, and shall be free from the interference, restraint, 
or coercion of employers of labor, or their agents, in the designation of 
such representatives or in self-organization or in other concerted 
activities for the purpose of collective bargaining or other mutual aid 
or protection. 

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

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

Section 3. Reclassification of Employees. — No employer shall reclas- 
sify employees or duties of occupations performed, or engage in any 
other subterfuge for the purpose of defeating the purposes or provisions 
of the Act or of this Code. 

Section 4. Standards for Safety and Health.— Every employer 
shall make reasonable provision for the safety and health of his em- 
ployees at the place and during the hours of their employment. 
Standards for safety and health for this Industry shall be submitted to 
the Administrator by the Code Authority within six months after 
the date of approval of this Code. 

Section 5. State Laws. — No provision in this Code shall supersede 
any State or Federal Law which imposes on employers more stringent 
requirements as to age of employees, wages, hours of work, or as to 
safety, health, sanitary or general working conditions, or insurance, 
or fire protection, than are imposed by this Code. 

Section 6. Posting. — All employers shall post and keep posted 
complete copies of this Code, and all amendments thereto, in con- 
spicuous places accessible to employees. 

Section 7. Company Town and Stores. — Employees other than 
maintenance or supervisory men, or those necessary to protect prop- 
erty, shall not be required as a condition of employment, to live in 
houses rented from the employer. No employee shall be required, as 
a condition of employment, to trade at a store owned or specified by 
an employer. 

Section 8. Payment of Wages. — An employer shall make payment 
of all wages in lawful currency or by negotiable check therefor, pay- 
able on demand. These wages shall be exempt from any payments for 
pensions, insurance, or sick benefits other than those voluntarily paid 



313 

by the wage earners, or required by State Laws. Pay periods for 
wages shall be at least semi-monthly, and for salaries at least once per 
month. Employers shall agree not to withhold wages. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

organization and constitution 

Section 1. A Code Authority is hereby constituted and shall 
consist of nine voting members. Five of such members shall be 
selected from the Executive Committee of the National Quicksilver 
Producers Association. One of such members shall be the Secretary 
of the National Quicksilver Producers Association. Two such mem- 
bers shall be members of the Industry (not members of the Executive 
Committee) truly representative of the various interests of the Indus- 
try and shall be elected by the National Quicksilver Producers Asso- 
ciation. One such member shall be elected by the members of the 
Industry who are not members of the National Quicksilver Producers 
Association, and shall be truly representative of such non-members. 
The selection of all elected members of the Code Authority shall be in 
a fair and equitable manner to be approved by the Administrator. 
In the event that the selection of the non-member of the National 
Quicksilver Producers Association is not made within thirty days 
after the effective date of this Code, such member shall be selected 
by the Administrator. 

In addition to the above membership, there may be one, and not 
more than three members, without vote, and without compensation 
by the Industry, appointed by the Administrator to serve for six- 
month or twelve-month terms, as he may specify, from the date of 
appointment. 

Section 2. Each trade or industrial association directly or in- 
directly participating in the selection or activities of the Code 
Authority shall, (1), impose no inequitable restrictions on member- 
ship, and (2), submit to the Administrator true copies of its Articles 
of Association, By-Laws, Rules and 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. 

Section 3. In order that the Code Authority shall at all times be 
truly representative of the Industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe such 
hearings as he may deem proper; and thereafter if he shall find that 
the Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an appro- 
priate modification in the method of selection of the Code Authority. 

Section 4. Members of the Industry shall be entitled to participate 
in and share the benefits of the activities of the Code Authority and 
to participate in the selection of the members thereof by assenting to 
and complying with the requirements of this Code and sustaining their 
reasonable share of the expenses of its administration. Such reason- 
able share of the expenses of administration shall be determined by 
the Code Authority, subject to review and approval by the Adminis- 
trator, on the basis of volume of business and/or such other factors as 
may be deemed equitable. 



314 

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

POWERS AND DUTIES 

Section 6. Subject to such rules and regulations as may be issued 
by the Administrator, 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. If the Admin- 
istrator 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 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 disapprove after thirty days' 
notice to him of intention to proceed with such action in its original 
or modified form. 

(a) To insure the execution of the provisions of this Code and 
provide for the compliance of the Industry with the provisions of the 
Act. 

(b) To adopt By-Laws, 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 pro- 
vide for submission by members of such information and reports as 
the Administrator may deem necessary for the purposes recited in 
Section 3 (a) of the Act, which information and reports shall be sub- 
mitted by members to such Federal or State agencies as the Adminis- 
trator may designate; provided that nothing in this Code shall relieve 
any member of the Industry of any existing obligations to furnish 
reports to any government agency. No individual reports shall be 
disclosed to any other member of the Industry or any other party 
except to such governmental agencies as may be directed by the 
Administrator. 

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

(e) To make recommendations to the Administrator for the coordi- 
nation of the admiuistration of this Code with such other Codes, if any, 
as may be related to the Industry. 

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



315 

(g) To recommend to the Administrator further fair trade practice 
provisions to govern members of the Industry in their relations with 
each other or with other industries and to recommend to the Admin- 
istrator measures for industrial planning, including stabilization of 
employment. 

Article VII — Marketing and Trade Practice Rules 

Section 1. Price Schedules. — Every member of the Industry within 
ten (10) days after the effective date of this Code shall file with the 
Code Authority the price or prices»and terms or conditions of sale at 
w r hich he is offering his products for sale; this original filing to become 
effective on the date of such filing. Any member of the Industry 
desiring to change the prices of his products or terms or conditions of 
sale, shall do so by notifying the Code Authority of the desired 
changes, which shall become effective upon the date of such notice. 
All schedules of prices, terms and conditions of sale shall be available 
to members of the industry and to the public. 

Section 2. Trade Practice Rules. — The following trade practices 
are declared to constitute unfair methods of competition between 
members of the Industry, and no member of the Industry shall use 
any of them, either directly or indirectly, through any officer, agent 
or employee. The violation of any one or more of these, or any 
further trade provisions which hereafter may be established, shall 
be deemed a violation of this Code. 

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

(2) The prepayment of freight charges with the intent or with the 
effect of granting discriminatory credit allowance. 

(3) The allowance in any form of adjustments, discounts, credits 
or refunds, for the purpose or with the effect of altering retroactively 
the price quoted in such manner as to create price discrimination. 

(4) The pre-dating or post-dating of any invoice or sales contract 
except to conform to a bona-fide agreement entered into on the 
pre-date. 

(5) The false marking of any product of the Industry or the inten- 
tional misrepresentation of analysis of content or of any size or 
weight of standard flask or the making of, causing or permitting to 
be made or publishing of any false, misleading or deceptive state- 
ment by way of advertisement, invoice, or otherwise concerning the 
size, quality, quantity, character, nature, preparation or origin of 
any industry product. 

(6) The defamation of competitors by falsely imputing to them 
dishonorable conduct, inability to perform contracts, questionable 
credit standing, or by other false representation or by false dispar- 
agement of the grade or quality of their goods. 

(7) The unauthorized use in written or oral form of trade-marks, 
trade names or slogans used by a competitor. 

(8) No member of the Industry 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 



316 

with or obstruct the performance of such contractual duties or 
services. 

(9) No member of the Industry shall ship goods on consignment 
except where peculiar circumstances of the Industry require the 
practice. Such exceptions shall be defined by the Code Authority 
with the approval of the Administrator, and shall apply alike to all 
members of the Industry. 

(10) 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. 

(11) 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. This commercial 
bribery provision shall not be construed to prohibit free and general 
distribution of articles commonly used for advertising except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

(12) No member of the Industry shall publish or circulate unjusti- 
fied or unwarranted threats of legal proceedings which tend to or have 
the effect of harassing competitors or intimidating their customers. 
Failure to prosecute in a reasonable time shall be evidence that any 
such threat is unwarranted or unjustified. 

(13) Aiding or abetting any person, firm, association, or corporation 
in any unfair practice. 

(14) Procuring, otherwise than with the consent of any member of 
the Industry, any information concerning the business of such member 
which is properly regarded by it as a trade secret as held confidential 
within its organization, other than information relating to a violation 
of any provision of this Code. 

(15) Knowingly shipping a lower grade of material than is described 
in the contract or order. 

(16) Deviating from the published and previously established 
specifications, for the purpose of influencing a customer or prospective 
customer. 

(17) Failing to file price schedules or changes therein, as required 
by Section 1 of this Article. 

(18) Selling of any Industry product by a member of the Industry 
at a price below the open, filed or publicly announced price schedules 
of such member, or deviation from the conditions of sale contained in 
such schedules filed pursuant to Section 1 of this Article. 

Article VIII — Export Trade 

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

Article IX — Modification 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of subsection (b) of Section 10 of the Act, from time to 



317 

time to cancel or modify any order, approval, license, rule, or regula- 
tion issued under said Act and specifically, but without limitation, to 
the right of the President to cancel or modify his approval of this Code 
or any conditions imposed by him upon his approval thereof. 

Section 2. Such of the provisions of this Code as are not required 
to be included therein by the Act may, with the approval of the 
Administrator, be amended as provided in Section 3 hereof, in such 
manner as may be indicated by the needs of the public, by changes in 
circumstances, or by experience; ail the provisions of this Code, 
unless so modified or eliminated, shall remain in effect until the 
expiration date of Title I of the Act. 

Section 3. An amendment may be proposed by any interested 
party either to the Code Authority or directly by or to the Admin- 
istrator. All proposed amendments shall be referred to the Code 
Authority, who shall give members of the Industry an opportunity 
to be heard thereon, and thereafter the Code Authority may make 
such recommendations thereon as is deemed proper, provided, how- 
ever, that when approved by the Administrator as necessary to 
effectuate the policies of the Act, after such notice and hearing as he 
may prescribe, any proposed amendment shall thereupon become 
effective as a part of this Code. 

Section 4. The Code Authority may make recommendations for 
modifications of this Code to the Administrator which shall become 
effective as a part of this Code upon approval by the Administrator 
after such notice and hearing as he may prescribe. 

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 — Effective Date 

This Code shall become effective beginning ten days after its 
approval by the Administrator. 

Approved Code No. 351. 
Registry No. 1218-8-04. 



Approved Code No. 352 
CODE OF FAIR COMPETITION 

FOR THE 

FLAG MANUFACTURING INDUSTRY 

As Approved on March 21, 1934 



ORDER 



Code of Fair Competition for the Flag 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 Flag 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 di- 

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 
provision: 

That application of provisions of Article X of said Code be stayed 
for a period of thirty (30) days from the effective date of this Code 
and further until such time as there shall be a hearing to determine 
rules and regulations of the homework provisions contained in Codes 
of Fair Competition and the determination by the Administrator 
thereof. 

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval recommended: 
A. D. Whiteside, 

Division Administrator. 

Washington, D.C., 

March 21, 1984. 

47767°-^425-112 34 (319) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Public Hearing on the Code of Fair Competition for the 
Flag Manufacturing Industry as proposed by the National Associa- 
tion of Flag Manufacturers was conducted in the Willard Hotel, 
Washington, D.C., November 17, 1933. 

Every person who requested an appearance was fairly heard in 
accordance with the regulations of the National Recovery Admin- 
istration. The Code has the approval of the Labor, Industrial and 
Consumers' Advisory Boards of the National Recovery Administra- 
tion and of the Legal Division. The Chairman of the Code Com- 
mittee, upon authorization of the Committee has also given his 
approval to the final draft of the Code on behalf of the Industry. 

The Industry as defined in the Code includes the manufacture of 
flags, banners, patriotic decorations and bunting decorations. The 
Submitting Association represents 90% of the Industry by number of 
concerns and approximately 90% by volume of business. In 1928 
the aggregate number of employees was five hundred and in 1933 
three hundred. However, the aggregate annual sales volume dropped 
from four million dollars in 1928 to one million two hundred thousand 
dollars in 1933. The decrease in the employment amounted to 
40% but the decrease in annual sales amounted to 70%. 

RESUME OF THE CODE 

Article I gives the purposes 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 employees in the 
Industry. 

Article V sets forth the General Labor Provisions. 

Article VI provides the general organization of the Code Authority 
and defines its powers and duties. 

Article VII sets forth Trade Practices which are unfair and which 
shall be eliminated. 

Article VIII provides for the modification of the Code in accordance 
with Section 10 (b) of the National Industrial Recovery Act. 

Article IX states that this Code shall not permit monopolies. 

Article X provides for the elimination of home work after June 1, 
1934. 

Article XI is the statement of policy on price increases. 

Article XII sets the effective date fifteen days after its approval. 

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 

(320) 



321 

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 the consumption of industrial and agricultural products 
through increasing purchasing power, by reducing and relieving unem- 
ployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

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

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

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

(e) The Code is not designed to and will not eliminate 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. 
March 21, 1934. 



CODE OF FAIR COMPETITION FOR THE FLAG MANUFAC- 
TURING INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Flag Manufacturing 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 flags, banners, patriotic decorations, and bunting decorations, and 
such other products as may from time to time be included under the 
provisions of this Code. 

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

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

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. 

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, however, 
employees may be permitted to work overtime not to exceed eighty 
(80) hours in any one calendar year. In no case, however, shall an 
employee be permitted to work more than forty-eight (48) hours in 
any one week. All overtime shall be compensated for at a rate of not 
less than time and a third (1%) the normal wage rate. 

2. (a) Electricians, engineers, Firemen, watchmen, and shipping 
crews shall be permitted to work not more than forty-four (44) 
hours in any one week. 

(b) Executives, supervisors and artists who receive thirty-five 
($35.00) dollars or more per week, repair shop crews on emergency 
work, and outside salesmen shall be exempt from Section 1 of this 
Article. 

3. 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. 

(322) 



323 

Article IV — Wages 

1. No employee shall be paid at less than the rate of thirteen 
dollars ($13.00) per week of forty (40) hours except as follows: 

(a) Learners may be paid at not less than the rate of eighty per- 
cent (80%) of the minimum wage provided for herein for a period 
not to exceed eight (8) weeks, provided that in no case shall the 
total number of learners employed exceed eight percent (8%) of the 
total number of employees, however, any employer shall be entitled 
to employ at least one learner. 

(b) A person whose earning capacity is limited because of age, or 
physical or mental handicap, may be employed on light work at a 
wage below the minimum established by this Code if the employer 
obtains from the State Authority designated by the United States 
Department of Labor, a certificate authorizing his employment at 
such wages and for such hours as shall be stated in the certificate. 
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 wages paid to, and the 
maximum hours of work for such employee. 

2. This Article establishes a minimum rate of pay, regardless of 
whether an employee is compensated on a time rate, piece work, or 
other basis. This provision shall not be construed to mean that em- 
ployees employed on a part-time basis shall receive the same weekly 
compensation as full-time employees. No employer shall reduce the 
weekly compensation of any employee receiving more than the mini- 
mum 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, 
weekly, 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 investigation, 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, nor anyone under eighteen (18) years of age at opera- 
tions, or occupations hazardous in nature or detrimental to health. 
The Code Authority shall submit to the Administrator before May 1, 
1934, a list of such occupations. In any State an employer shall be 
deemed to have complied with this provision if he shall have on file a 
certificate or permit duly issued by the authority in such State em- 
powered 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 collec- 
tive 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 



324 

from joining, organizing, or assisting a labor organization of his own 
choosing. 

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

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

6. Employers shall not reclassify employees or duties of occupations 
performed by employees or engage in any other subterfuge so as to 
defeat the purposes of the Act. 

7. Each member of the industry shall be furnished, by the Code 
Authority, with official copies of the provisions of this Code relating 
to hours of labor, rates of pay, and other conditions of employment. 
Such official copies of such provisions shall contain directions for 
filing complaints of violations of such provisions, and shall be kept 
conspicuously posted at all times by such members of the industry in 
each shop, establishment, or separate unit, to the extent necessary 
to make them freely accessible to all members including home workers. 
Whenever any modifications of, or exemption or exception from this 
Code permits any person to pay lower wages, or work his employees 
longer hours, or establish traditions of employment less favorable to 
his employees than those prescribed by the provisions contained in 
such official copy of the provisions of this Code, the Code Authority, 
on the request of such person, shall furnish him with certified copies 
of such modifications, exemption or exception in sufficient number for 
posting along side of such official copies of Code Provisions. No 
member of the industry shall display or furnish any incorrect copies 
of such provisions, directions, modifications, exemptions or exceptions. 

8. No provisions in this Article shall modify established practices 
for privileges as to vacation period, leaves of absence, or temporary 
absence from work heretofore guaranteed to office employees. 

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

Authority 

organization and constitution 

1 . There shall forthwith be constituted a Code Authority consisting 
of: 

(a) Five (5) 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. 

(b) Such additional members, without vote, not to exceed three 
(3), as the Administrator may appoint to represent such groups or 
interests or governmental agencies as he may deem proper and for 
such periods as he may designate. 

2. The representatives of the Industry shall be selected by the 
National Association of Flag Manufacturers in a manner to be 
approved by the Administrator. 

3. Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) submit 
to the Administrator true copies of its articles of association, by-laws, 



325 

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 Industry and in other respects comply with the 
provisions of the Act, the Administrator may prescribe such hearings 
as he may deem proper; and thereafter if he shall find that the Code 
Authority is not truly representative or does not in other respects 
comply with the provisions of the Act, may require an appropriate 
modification in the method of selection of the Code Authority. 

5. Members of the Industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority by assenting 
to and complying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. Such 
reasonable share of the expenses of administration shall be determined 
by the Code Authority, subject to review by the Administrator, on 
the basis of volume of business and/or such other factors as may be 
deemed equitable. 

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

7. If the Administrator shall determine that any action of a Code 
Authority or any agency thereof may be unfair or j unjust or con- 
trary to the public interest, the Administrator may require that such 
action be suspended to afford an opportunity for investigation of the 
merits of such action and further consideration by such Code Author- 
ity 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. 

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

(a) To insure the execution of the provisions of this Code and to 
provide, subject to rules and regulations established by the Admin- 
istrator, for the compliance of the Industry with the provisions of the 
Act; provided, however, that this shall not be construed to deprive 
duly authorized governmental agencies of their power to enforce the 
provisions of this Code or of the Act. 

(b) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To obtain from members of the Industry such information 
and reports as are required for the administration of the Code, and 
in addition to information required to be submitted to any Code 
Authority all or any of the persons subject to this Code 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 relieve any person of existing obligations to 



326 

furnish reports to government agencies. 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 
President. 

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

(e) To make recommendations to the Administrator for the coor- 
dination of the administration of this Code with such other codes, if 
any, as may be related to the Industry. 

(f) To provide ways and means for financing the operation of said 
Code Authority and to determine an equitable method of apportioning 
in the Industry the cost of administering this Code. Money raised 
in any manner shall not exceed in amount such reasonable cost. 

(g) To cooperate with the Administrator in regulating the use of 
any N.R.A. insignia solely by those members of the Industry who have 
assented to, and are complying with, this Code. 

(h) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provisions to 
govern members of the Industry in their relations with each other or 
with other industries, measures for industrial planning, and stabiliza- 
tion of employment; and including modifications of this Code which 
shall become effective as part hereof upon approval by the Adminis- 
trator after such notice and hearing as he may specify. 

(i) To cause to be formulated a standard method of finding and/or 
estimating cost capable of use by all members of the Industry. After 
such method has been formulated, full details concerning it shall be 
made available to all members. Thereafter all members shall deter- 
mine and/or estimate costs in accordance with the principles of such 
method. 

Article VII — Trade Practices 

1. No member of the Industry shall brand or mark any com- 
modity in any manner which tends to mislead or deceive the purchas- 
ers with respect to the grade, quality, origin, size, material, con- 
tent or preparation or such commodity in conformity with the stand- 
ards as established by the Code Authority when approved by the 
Administrator. 

2. No member of the Industry shall make, cause, or knowingly 
permit to be made or published any false, materially inaccurate, or 
deceptive statements by way of advertisement or otherwise, whether 
concerning the grade, quality, quantity, substance, character, nature, 
origin, size, finish, or preparation of any product of the Industry, or 
the credit terms, values, policies, or services of any member of the 
Industry, or otherwise, having the tendency or capacity to mislead, 
or deceive customers or prospective customers. 

3. 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 



327 

knowledge of such employer, principal or party. Commercial bribery 
provisions are not to 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 hereinabove 
defined. 

4. No member of the Industry shall attempt to induce the breach 
of an existing contract between a competitor and his customer, or 
source of supplies; nor shall any such member interfere with or object 
to the performance of such contractual duties or services. 

5. No member of the Industry shall secretly make or offer to make 
any payments 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 offer or 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 offer or give prizes, premiums, 
or gifts in connection with the sale of products, or as an inducement 
thereto, by any scheme which involves lottery, misrepresentation, or 
fraud. 

7. No member of the Industry shall use advertising or other repre- 
sentation which refers inaccurately in any material particular to any 
competitors or their commodities, prices, values, credit terms, policies, 
or services. 

8. No member of the Industry shall publish or circularize unjusti- 
fied or unwarranted threats of legal proceedings which have or tend to 
have the effect of harassing competitors or intimidating any of their 
customers. 

9. No member of the Industry shall use any unfair means to secure 
information regarding the manner in which a competitor conducts his 
business. 

10. (a) No member of the Industry shall sell any article subject to 
the provisions of this Code below his individual cost; however, any 
member of the Industry may meet the price of any competing member 
of the Industry whose cost under this provision is lower. Cost for the 
purpose of this provision shall be determined in accordance with 
Section 8 (i) of Article VI of this Code, (b) Any member of the 
Industry may sell dropped lines or distress merchandise below such 
cost provided the facts of such contemplated sale are reported to the 
Code Authority at least twenty-four (24) hours prior to such sale. 

(c) When the Code Authority determines that an emergency exists 
in this Industry and that the cause thereof is destructive price-cutting 
such as to render ineffective or seriously endanger the maintenance 
of the provisions of this Code, it may cause to be determined the 
lowest reasonable cost of the products of this Industry, such deter- 
mination to be subject to such notice and hearing as the Administrator 
may require. The Administrator may approve, disapprove, or mod- 
ify the determination. Thereafter, during the period of the emer- 
gency, it shall be an unfair trade practice for any member of the 
Industry to sell or offer to sell any products of the Industry for which 
the lowest reasonable cost has been determined at such prices or upon 
such terms or conditions of sale that the buyer will pay less therefor 
than the lowest reasonable cost of such products. When it appears 
that conditions have changed, the Code Authority, upon its own 



328 

initiative or upon the request of any interested party, shall cause the 
determination to be reviewed. 

11. No member of the Industry shall ship goods on consignment 
except under circumstances to be authorized by the Code Authority, 
subject to the approval of 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 provisions 
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 specifi- 
cally, but without limitation to the right of the President to cancel or 
modify his approval of this Code or any conditions imposed by him 
upon his approval thereof. 

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

Article IX — Monopolies 

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

Article X l — Home Work 

1. No home work shall be permitted by employers after June 1, 
1934. After April 1, 1934, no employer shall employ more than sixty 
percent (60%) of the number of home workers employed by him as 
of September 1, 1933. 

2. Until June 1, 1934, no work shall be permitted in any home by 
employers unless and until evidence has been presented to the Code 
Authority, as agent for the Administrator, that all State, municipal, 
and other laws and regulations relating to home work have been 
complied with and unless the names and addresses of such home 
workers and their employers shall have been filed with the Code 
Authority. 

3. The Code Authority shall file with the Administrator a list of 
the names and addresses of all home workers employed in the Industry 
and shall indicate by whom all such home workers are employed. 

4. No home worker shall be engaged at the same time by more than 
one employer. 

5. All home workers shall be paid on the same piece-rate basis as 
factory employees engaged in similar work. 

1 See paragraph 3 of order approving this Code. 



329 

Article XI — Price Increases 

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

Article XII — Effective Date 

This Code shall become effective on and after the fifteenth (15th) 
day after its approval. 

Approved Code No. 352: 
Registry No. 234-1-01. 

o 



Approved Code No. 353 
CODE OF FAIR COMPETITION 

FOR THE 

INSULATION BOARD INDUSTRY 

As Approved on March 22, 1934 



ORDER 



Approving Code of Fair Competition for the Insulation 

Board 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 Insulation Board 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 application of Articles III and IV to Hawaii shall be and 
hereby is stayed pending my further order. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
A. R. Glancy, 

Division Administrator. 

Washington, D.C., 

March 22, 1934. 



47885° 425-120 34 (331) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the Insu- 
lation Board Industry, as revised after a public hearing conducted in 
Washington on November 9, 1933, in accordance with the provisions 
of the National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employees are not permitted to work more than forty hours a 
week and eight hours a day, with certain exceptions, such as repair 
and maintenance crews, watchmen, tour machine workers to avoid 
shutdowns, and employees engaged in emergency repair work. 

Factory employees are permitted to work forty-eight hours a week 
and eight hours a day during twelve weeks of peak production periods 
of each year but one and one-half times the normal rate shall be paid 
for hours worked in excess of forty a week and eight a day. 

Office employees are permitted to work forty hours a week. 
Though eight hours is the daily normal, these employees may be 
permitted to work nine hours a day; hourly limitations do not apply 
to executives, managers or supervisors who receive thirty-five dollars 
or more a week, or to outside salesmen. No employee is permitted 
to work more than six days in any seven-day period. Employers are 
not permitted to work employees time which when totaled with that 
performed for another employer, exceeds the maximum provided by 
this or any code. 

In Hawaii, skilled and semi-skilled employees are permitted to work 
forty-eight hours a week during two three-month periods each year; 
provided, one and one-half the normal rate is paid for hours worked 
in excess of forty a week. 

Except for office and sales employees, the minimum hourly rate of 
pay shall be forty cents in the North, thirty-two and one-half cents 
m the South and twenty-seven and one-half cents in Hawaii. 

A minimum rate of pay is established irrespective of whether an 
employee is compensated on a time rate, piecework, or other basis. 
Compensation of employees receiving more than the minimum shall 
be equitably adjusted but in no event shall rates of pay be reduced. 

Office and sales employees shall receive either fifteen, fourteen and 
one-half, or fourteen dollars a week, depending upon the population 
of the place of their employment. 

Other provisions relate to employment of handicapped persons, 
regular payment of wages, child labor and equality in pay for males 
and females doing the same work. 

(332) 



333 

ECONOMIC EFFECTS OF THIS CODE 

Operating under the President's Reemployment Agreement, the 
wages of 76.1 percent of the industry's employees were raised and the 
industry engaged 2 percent more employees than ever before. Though 
operating at 45 percent of capacity, this industry will reemploy all 
former emploj^ees. Employment on September 1, 1933, shows an 
increase of approximately 20 percent over the average number 
employed during the year 1929. 

A very large percentage of the total number of factory employees 
will be beneficially affected by the proposed minimum rates in the 
Code. 

Average working hours will be reduced 26 percent, or from an 
average of 54.4 per week to slightly more than 40 without materially 
reducing the employees' annual income. The forty-hour limitation 
on the work will mean a 26 percent decrease in hours worked in a week. 

The rates of pay of 60 percent of this industry's employees who are 
unskilled will be greatly increased. The equitable adjustment pro- 
vision of this Code will effect material increases in the rates of pay 
of skilled employees. 

This Code will eliminate unfair practices and facilitate the rendi- 
tion of better service by this industry to the construction industry. 

Further increases in employment are contingent upon a return to 
normalcy of residential construction in which the industry's products 
are primarily used. 

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

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

(c) The code as approved complies in all respects with the pertinent 
provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant association is 
an industrial association truly representative of the aforesaid Indus- 



334 

try; and that said association imposes no inequitable restrictions on 
admission to membership therein. 

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

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

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

For these reasons, therefore, I have approved this code. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
March 22, 1934. 



CODE OF FAIR COMPETITION FOR THE INSULATION 
BOARD 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 Insulation Board Industry, shall be the standards of fair com- 
petition for such industry and shall be binding upon every member 
thereof. 

Article II — Definitions 

The term " Insulation Board Industry" or "the Industry" as used 
herein includes the manufacture and/or sale, by a member of the 
industry within the United States and those of its possessions and 
territories to which the Act applies, of insulation board products 
herein defined as "industry products". 

The term "member of the Industry" or "Industry member" 
includes those manufacturing and selling industry products, those 
selling as manufacturers the entire output of a manufacturer of any 
such products and those manufacturers selling, and billing therefor, 
industry products manufactured for them by another, but not in- 
cluding those recognized by the Industry as wholesalers and/or 
dealers and/or contractors. 

The term "industry products" includes the following insulation 
boards: building board, lath board, sheathing board, sheathing 
plank, tile board, insulating batten strips, bevel lap plank, paper sur- 
faced insulation board, movie board, roof board, industrial board, 
cold storage board; and also panel board, hard board, and quarter 
board. 

The term "Employee" as used herein includes any person engaged 
in any phase of the Industry, however compensated, except a member 
of the industry. 

The term "Employer" as used herein includes any one for whose 
benefit such an employee is so engaged. 

The term "President" means the President of the United States. 

The terms "Act" and "Administrator" as used herein mean re- 
spectively Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery. 

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

Article III 1 — Hours 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any week or eight (8) hours in any day except as 
otherwise provided in this Article III. 

1 See paragraph 2 of order approving this Code. 

(335) 



336 

Section 2. In order to provide for peak production periods plant 
and factory employees may, during any twelve (12) weeks in each 
calendar year, be permitted to work up to but not in excess of forty- 
eight (48) hours in any week, or eight (8) hours in any day, provided, 
however, that such time worked in excess of forty (40) hours in any 
such week or eight (8) hours in any day by such employees, shall be 
paid for at not less than one and one-half (1 %) times the normal rate 
of pay. 

Section 3. The maximum hours of labor for chauffeurs, truckmen, 
switching crews, repair and maintenance crews, engineers, firemen, 
electric operators and departmental foremen shall be ten (10) per cent 
over the hours fixed in the foregoing Sections 1 and 2, provided, how- 
ever, that the total number of such employees who may be worked the 
maximum hours herein established shall not exceed ten (10) per cent 
of the total number of plant and factory employees of the individual 
member of the industry, and provided, further, that in no event shall 
such employees be permitted to work in excess of forty-eight (48) hours 
per week during peak periods and shall receive overtime of at least 
one and one-half (1)0 times the normal rate for all hours in excess of 
forty (40) hours per week and eight (8) hours per day. 

Section 4. (a) Tour machine workers in continuous process opera- 
tions, may be permitted to work additional hours to avoid a shut- 
down due to the temporary absence of a scheduled relief worker. 

(b) Tour machine workers may be permitted to work two additional 
hours at the end of a machine run for clean-ups, wash-ups and ordinary 
repairs and adjustments in cases where a machine is shut down for a 
period of not less than twenty-four (24) consecutive hours provided 
one and one half (1}0 times the normal rate is paid for such additional 
hours. 

Section 5. The maximum hours for watchmen shall be fifty-six 
(56) hours in any one week. 

Section 6. In Hawaii skilled and semi-skilled employees shall be 
permitted to work forty-eight (48) hours a week during two three- 
months periods in each calendar year, provided, however, that all 
such time worked in excess of forty (40) hours in any week shall be 
paid for at not less than one and one-half (IK) times the normal rate 
of pay. 

Section 7. No accounting, clerical, office, or sales employee (ex- 
cept outside salesmen) shall be permitted to work in excess of forty 
(40) hours per week or nine hours per day. A normal day shall not 
exceed eight hours. 

Section 8. No employee shall be permitted to work in excess of 
six days in any seven-day period. 

Section 9. No employer shall knowingly permit any employee to 
work for any time which, when totaled with that already performed 
for another employer or employers or under another code or codes 
exceeds the maximum permitted herein. 

Section 10. The foregoing limitations on hours and days in this 
Article III shall not apply to outside sales or outside sales service 
men; to employees engaged in executive, managerial or supervisory 
capacity who receive thirty-five (35) dollars per week or more; or 
to employees engaged in emergency work involving break-downs or 
the protection of fife or property but employees engaged in such 
emergency work shall be compensated by at least one and one-half 



337 

(1 %) times the normal rate for all work in excess of the normal hours 
of forty (40) per week and eight (8) per day, herein provided. 

Article IV 2 — Wages 

Section 1. No employee (excluding accounting, clerical, office and 
sales employees) shall be paid at less than thirty-two and one-half 
(32 %) cents per hour in Virginia, North Carolina, South Carolina, 
Georgia, Florida, Alabama, Mississippi, Arkansas and Louisiana; 
nor in any other state at less than forty (40) cents per hour; nor in 
Hawaii at less than twenty-seven and one-half (27 K) cents per hour. 

This Section establishes a minimum rate of pay which shall apply 
irrespective of whether the employee is compensated on a time rate, 
piece-work, or other basis. An equitable adjustment for employees 
will also be made as to rates of compensation in excess of such mini- 
mum rate by all members of the Industry who have not heretofore 
made such an equitable adjustment and in no case shall rates be 
decreased, and within sixty (60) days after the effective date hereof 
each member of the Industry shall report to the Code Authority, 
for submission to the Administrator, the action taken by such member 
in pursuance of this provision. 

Section 2. No accounting, clerical, office or sales employee shall 
be paid at less than the rate of fifteen (15) dollars per week when 
employed in any city of over 500,000 population or in the immediate 
trade area of any such city; or at less than the rate of fourteen and 
one-half (14)0 dollars per week when employed in any city of between 
250,000 and 500,000 population, or in the immediate trade area of 
any such city; or at less than the rate of fourteen (14) dollars per 
week when employed in any city of less than 250,000 population, 
or in the immediate trade area of any such city. 

Section 3. A person whose earning capacity is limited because of 
age or physical or mental handicap may be employed on light work 
at a wage not less than eighty (80) per cent of the minimum estab- 
lished by this Code, but such employees shall not exceed five per cent 
of any employer's total number of employees, provided the employer 
obtains from the state authority designated by the United States 
Department of Labor a certificate authorizing his employment at 
such wages and for such hours as shall be stated in the certificate. 
Such state authority shall be guided by the instructions of the United 
States Department of Labor in issuing such certificate. Each em- 
ployer shall file with the Code Authority a list of all such persons 
employed by him. 

Section 4. An employer shall make payment of all wages in lawful 
currency or by negotiable check at regular pay periods. These wages 
shall be exempt from any payments for pensions, insurance, or sick 
benefits other than those voluntarily made by the employee, or re- 
quired by state or federal law. The employer shall accept no rebates 
directly or indirectly on such wages. 

Section 5. Female employees performing substantially the same 
work as male employees shall receive the same pay as male employees. 

* See paragraph 2 of order approving this Code. 



47885° 425-120- 



338 

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 in machine operations. 

Section 2. In compliance with Section 7 (a) of the Act it is pro- 
vided (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 designations 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 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; (c) employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of employment 
approved or prescribed by the President. 

Section 3. 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 thie 
Code. 

Section 4. No provisions of 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 5. Each employer shall keep posted, under such rules as 
the Administrator may prescribe, in conspicuous places at every 
plant or factory in which Industry products are manufactured, copies 
of this Code. 

Section 6. Each employer shall provide for the health and safety 
of his workmen at the place and during the hours of their employ- 
ment. Standards for safety and health shall be submitted by the 
Code Authority to the Administrator for approval before June 1, 1934. 

Article VI — Cost Accounting System 

Section 1. The Code Authority shall cause to be formulated and 
submitted for the approval of the Administrator, 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 and approved by the Administrator, full details 
concerning them shall be made available to all members. Thereafter 
all members shall determine costs in accordance with the principles 
of such methods. 

Section 2. No member of the Industry, after the adoption of said 
uniform cost accounting system, shall price or sell any Industry 
product below such member's allowable cost as determined under 
Section 1 of tins Article, except to meet an established market price 
on such product. Established market price on any industry product 
for the purpose of this Section means the price at which any com- 
petitor is selling such product. 



339 

Article VII — Publication of Price 

Section 1. Each member of the Industry shall, within five days 
of the effective date of this Code, publish and file with the Code 
Authority, or such other agency as the Code Authority may desig- 
nate, complete lists or schedules of prices and terms and conditions 
of sale of all Industry products offered for sale by such member, 
except to another member of the Industry, and shall so publish and 
file all subsequent changes therein or revisions thereof, and such price 
lists or schedules and terms and conditions of sale, and changes or 
revisions thereof as aforesaid so filed, shall for the purpose of this 
Code be treated as the published price lists or schedules and terms 
and conditions of sale of the member filing the same, and shall be 
available to each member of the Industry and after the effective 
date thereof to all interested parties. The Code Authority shall 
promptly cause a copy of all such price lists and terms and conditions 
of sale, and all changes therein or revisions thereof, to be sent to 
each member of the Industry. 

Section 2. No member of the Industry shall offer for sale, quote 
on or sell any of its industry products at a price or prices or upon 
terms and conditions other than those stated in the published price 
list and the terms and conditions of sale, and changes therein or 
revisions thereof, published and filed by such member, except to 
another member of the Industry. 

Section 3. If at anytime hereafter the Administrator shall give 
his approval to the requirement that subsequent changes or revisions 
of any price lists or terms or conditions of sale as provided in Sec- 
tion 1 hereof shall be filed a specific period of time prior to the effec- 
tive date thereof, the Code Authority may provide that all changes 
in such price lists or terms or conditions of sale or revision thereof 
thereafter filed shall be published or filed five days or such other 
period of time as may be approved by the Administrator, prior to 
the effective date of any such subsequent changes or revision, and 
such price lists or schedules and terms and conditions of sale, and 
changes or revisions thereof as aforesaid so filed, shall for the purpose 
of this Code be treated as the published price lists or schedules and 
terms and conditions of sale of the member filing the same, and shall 
be available to each member of the Industry and after the effective 
date thereof to all interested parties. The Code Authority shall 
promptly cause a copy of all such price lists and terms and con- 
ditions of sale, and all changes therein or revisions thereof, to be 
sent to each member of the Industry. In the event that any Industry 
member shall not receive sufficient notice of the filing by any other 
Industry member of changes in such other member's prices or terms 
and conditions of sale as will enable such member to meet such 
changes on the effective date thereof, such member may file with 
the appropriate agency such changes in such member's prices or 
terms and conditions of sale as may be required to meet the changes 
filed by such other member. Changes so filed by_ such member 
shall become effective on the same date as the effective date for the 
changes of such other member first filing as aforesaid, or, if those 
changes shall have already become effective, then the changes sub- 
sequently filed as aforesaid, shall become effective immediately. 



340 
Article VIII — Trade Practices 

Section 1. A Trade Practice Code for the Industry is attached 
hereto as Exhibit A and made a part hereof. 

Section 2. Any deviation from the standards of fair dealing set 
forth in such Trade Practice Code or any amendment thereof shall 
be an act of unfair competition. 

Section 3. Articles VI, VII, VIII, hereof and any Trade Practice 
Code or Merchandising Plan adopted by the Industry with the 
approval of the Administrator shall apply to sales for consumption 
in the United States, its possessions and territories only. 

Article IX — Administration 

To further effectuate the policies of the Act, a Code Authority 
is hereby set up to cooperate with the Administrator in the adminis- 
tration of this Code. 

Section 1. The Code Authority shall consist of one representative 
from each member of the Industry who shall subscribe to the Code 
and sustain his prorata share of the expenses as provided in Section 
6 of this Article IX. In addition, there may be not more than 
three members, without vote and without cost to the Industry, ap- 
pointed by the Administrator to serve for such periods as the Adminis- 
trator may designate. 

Section 2. The Code Authority shall have full power and authority 
from time to time to require such reports from members of the Indus- 
try with respect to capacity, production, orders and shipments, per- 
sons employed, wage rates, earnings and hours of labor, prices, costs 
and other items as may be required to adequately administer and 
enforce the provisions of this Code; subject to approval by the Admin- 
istrator after such hearing as he may prescribe, to prepare and pro- 
mulgate for the Industry from time to time, merchandising plans or 
changes in or additions to any such plans which may be adopted 
under this Code containing such provisions as may be necessary or 
proper to insure fair selling methods by the Industry and to prevent 
unfair competitive practices, and to recommend the standardization 
of products by the members of the Industry. It shall also have power 
and authority to make rules and regulations, consistent with the intent 
of the Act, for its own conduct and subject to the Administrator's 
approval, for the administration of this Code, to cooperate with the 
Administrator and other proper government officials in the enforce- 
ment of this Code, and to do all things proper to enable this Industry 
to function under this Code and to give full effect to the rules, regula- 
tions, and conditions, herein contained or promulgated hereunder. 

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 Adminis- 
trator 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; and nothing in this Code shall relieve any person of 
any existing obligation to furnish reports to Government agencies. 

In order to assure confidential treatment of individual figures, all 
reports, data and information which the Code Authority is empowered 
to receive shall be received by an agency appointed by the Code Au- 
thority, not a member or connected with a member of the Industry, 



341 

or, in the absence of such appointment, the secretary of the Insulation 
Board Institute is hereby appointed the agency to receive the same. 
The agency so receiving any such reports, data and information shall 
keep the same confidential except when required by the Code Author- 
ity or by the Administrator for the proper enforcement of this Code. 
All such reports, data and information shall be available at all times 
to the Administrator. 

Collusion between any Industry member and any such confidential 
agency for the purpose of examining any report or data or obtaining 
any information collected or received by such confidential agency 
shall constitute unfair competition and shall be a violation of this 
Code. 

Section 3. The Code Authority may from time to time appoint a 
committee of not more than five members of the Industry and dele- 
gate to any such committee any of the authority herein granted to 
the said Code Authoiity, including the carrying on of all communica- 
tions and conferences on behalf of the Code Authority with the Presi- 
dent or his agents concerning the approval or amendment of this Code 
or any of its provisions or any other matters relating thereto. Any 
committee so appointed shall exercise the authority specifically dele- 
gated to it by the Code Authority in the resolution appointing the 
same. The Code Authority member or members appointed by the 
Administrator shall be an ex-officio member or members, without vote, 
of any committee appointed hereunder. The Code Authority shall 
be responsible for all actions taken by its appointed committees. 

Section 4. Each member of the Code Authority representing an 
Industry member shall be entitled to cast one vote on all matters 
coming before the Code Authority for consideration but no manu- 
facturing member, and the selling agent or selling agents, distributor 
or distributors, of such manufacturing member's products shall in 
the aggregate have more than one vote. Reasonable notice of all 
meetings shall be given to each member of the committee. At any 
duly called meeting of the Code Authority a three-fourths affirmative 
vote of the voting members present at the meeting, either in person 
or by the members' alternates, shall be required to make effective 
any action of the Code Authority or for the adoption of any resolution 
except as herein otherwise specifically provided. Any member of 
the Code Authority in his absence may be represented by an alternate 
appointed by him who shall be a person actively connected with the 
same company with which the member making the appointment is 
connected. A majority of the voting members of the Code Authority 
shall constitute a quorum. 

Section 5. Any interested party shall have the right of complaint 
to the Code Authority or proper agency and a prompt hearing and 
decision thereon. Any interested party shall have the right of appeal 
to the Administrator, under such rules and regulations as he shall 
prescribe, with respect to any decision, rule, regulation, order, or 
finding made by the Code Authority. 

Section 6. All expenses involved in administering the Code shall 
be determined by the Code Authority, subject to disapproval by the 
Administrator, and prorated among members of the Industry who 
expressly assent to the Code. The proration by the Code Authority 
of all such expenses shall be determined by the Code Authority on 
the basis of the aggregate billings on sales for consumption in the 



342 

United States and its possessions and territories for the preceding six 
months of all industry products sold by the members of the Industry. 
Billings shall be based on the actual sales price but where board is 
sold at thirty (30) dollars or more per thousand square feet surface 
measurement, it shall be figured as of thirty (30) dollars and where 
sold at sixteen (16) dollars or less per thousand square feet surface 
measurement, it shall be figured as of sixteen (16) dollars. 

Section 7. Nothing 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 of the Code Authority. Nor shall any member 
of the Code Authority exercising diligence in the conduct of his duties 
hereunder be liable to anyone for any act or omission to act under 
this Code except for his own wilful misfeasance or non-feasance. 

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. 

Section 9. The Code Authority shall have power to propose 
amendments to this Code which shall be effective as a part thereof 
upon the approval of the President or his agents after such notice and 
hearing as he may prescribe. 

Section 10. In order that the Code Authority shall at all times be 
truly representative of the industry and in other respects comply with 
the provisions of the Act, the Administrator may prescribe such hear- 
ings as he may deem proper; and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an appro- 
priate modification in the method of selection of the Code Authority 

Article X — General 

Section 1. There shall be no future amendment of the constitution 
and by-laws of the Insulation Board Institute which will tend to make 
the association not truly representative of the Industry and/or which 
shall impose any inequitable restriction on membership. 

Section 2. No provisions of this Code shall be interpreted or applied 
in such manner as to promote or permit monopolies or monopolistic 
practices ; permit or encourage unfair competition; eliminate or oppress 
small enterprises or discriminate against them. 

Section 3. The Code Authority may investigate and inform the 
President or the Administrator, on behalf of the Industry, as to 
importations of competitive articles into the United States and its 
possessions and territories selling on a price basis that undersells 
similar articles of domestic manufacture, and the extent to which 
such underselling shall render ineffective or seriously interfere with 
the maintenance of this Code, and which may be made the basis for 
complaint to the President or the Administrator, on behalf of the 
Industry, under the provisions of the Act with respect thereto. 



343 

Section 4. Nothing contained in this Code shall be construed ag 
prohibiting any member of the Industry from exercising his lawful 
patent rights or as requiring any member of the Industry to do any 
act in conflict with the terms of any patent licensing or patent sales 
agreement. 

Section 5. As required by Section 10 (b) of Title I of the Act, the 
following provision is contained in this Code; The President may, 
from time to time, cancel or modify any order, approval, license, rule 
or regulation issued under said Title. 

Section 6. Such of the provisions of this Code as are not required 
to be included herein by the Act may upon submission to the Code 
Authority and approval of the President be modified or eliminated 
as changes in circumstances or experience may indicate. It is con- 
templated that from time to time supplementary provisions to this 
Code or additional Codes may be submitted for the approval of the 
President, to prevent unfair competition in price and other unfair and 
destructive competitive practices and to effectuate the other purposes 
and policies of Title I of the Act consistent with the provisions hereof 
and any such supplementary provisions or additional codes, after 
submission to the Industry and approval by the President, shall 
become a part of this Code and effective as such. 

Section 7. Violation by any member of this Industry of any of 
the provisions of tins Code or of any approved amendment hereof is 
an unfair method of competition. 

Section 8. This Code and all of the provisions thereof shall cease 
to be in effect on June 16, 1935, or sooner if the President shall by 
proclamation or the Congress shall by joint resolution declare that 
the emergency recognized by Title I of the Act has ended. 

Section 9. This Code shall be in effect beginning the second 
Monday after its approval by the President. 

Approved Code No. 353. 
Registry No. 1630-1-02. 



EXHIBIT "A" 
Trade Practices Regulations 

Section 1. Definition. — The word "member" as used in this Exhibit "A" 
shall be understood to include any member of the Industry and all officers, em- 
ployees, agents, sales agencies and representatives of such member. The word 
"customer" as hereinafter used in these Regulations shall be understood to 
include all purchasers and prospective purchasers of Industry products, the 
officers, employees, agents, and representatives of such purchasers or prospective 
purchasers and any other party in a position to materially influence sales of 
Industry products. 

Section 2. Price Discrimination. — No member shall discriminate in price, 
either directly or indirectly, between different purchasers of commodities, except 
on account of differences in quantity, quality or grade of products sold or the 
making of a reasonable differential in price charged to different classes of trade, 
or the making of different prices in different markets according to usual distribu- 
tion of such products prevailing in the trade or Industry; provided, however, that 
nothing herein contained shall prevent the members of the Industry from selecting 
their own customers. No member shall make any discrimination in price by, 
(a) falsely classifying a customer; (b) by pooling shipments or permitting the 
pooling of shipments on specified contracts destined to various purchasers for the 
purpose of reducing prices below the published price for the quantity destined to 
the individual purchaser; (c) by selling and/or billing any customer on more liberal 
terms than those regularly published by such member; (d) by allowing over-riding 
discounts payable at some future date; (e) by carrying notes for customers without 
charging interest thereon at the rate of 6%per annum. 

Section 3. Rebates. — No member shall, directly or indirectly, make or permit 
to be made to any customer any secret rebates;- unearned refunds, credits, dis- 
counts, commissions, bonuses, or other allowances; or any subsidies of any 
character whatsoever, whether in the form of money; services; excessive allow- 
ances for alleged defective merchandise, shortages, adjustments of complaints, 
or returned goods; extension of guarantees to customers against price advances or 
price decline; issuance of credit allowances or refunds on inventory stocks of 
customers because of price changes or otherwise; rendering fictitious invoices or 
making shipments of merchandise in quantities different than shown on the 
invoices; permitting deductions on payment of invoices of items not covered by 
the terms of sale; disposing of material at reduced prices which has been shipped 
to a customer and not paid for; or in any other form or manner whatsoever. 

Section 4. Commercial Bribery. — No member of the Industry shall give, 
permit to be given, or directly offer to give, anything of value for the purpose of 
influencing or rewarding the action of any employee, agent, or representative 
of another in relation to the business of the employer of such employee, the 
principal of such agent or the represented party, without the knowledge of such 
employer, principal or party. Commercial bribery provisions shall not be 
construed to prohibit free and general distribution of articles commonly used for 
advertising except so far as such articles are actually used for commercial bribery 
as hereinabove defined. 

Section 5. Dealings with Customers. — No member shall knowingly utilize 
trucking facilities (hire or employ truck) either wholly or partly owned by a cus- 
tomer; rent or renew any lease for any part of the premises of a customer or rent 
warehouse space from a customer except in the case of a public warehouse in 
which such customer may have an interest but in which his place of business is 
not located. No member shall warehouse either in his factory, his own or hired 
warehouse for more than thirty (30) days, goods which have been sold to any 
customer, or paid for by any customer. No member shall make any purchases of 
any materials other than industry products from customers at prices in excess of 
prevailing open market prices. No member shall, directly or indirectly, give or 
permit to be given to any customer money, donations of cash, or other things of 
value as inducement to cause any such customer to purchase or contract to pur- 
chase industry products from such member or to influence any such customer to 

(344) 



345 

refrain from dealing or contracting to deal with any competitor of such member; 
except usual sales help, members' technical assistance, conventional samples, or 
material for experimental or test purposes. Members shall not furnish material 
at other than published prices or labor for display purposes to cover any part of 
buildings whether such buildings are owned by customers or not. No member 
shall assume any portion of the expenses incurred by a customer in the operation 
of such customer's business, except in the sale and fabrication of hardboard, 
quarterboard and panel board for industrial uses but nothing herein shall prevent 
a member from making an adjustment on a bona fide claim on account of defective 
material. No member shall bear or share in the cost of customer's space adver- 
tising; pay for advertising in any customer's house organ or catalog, or in indi- 
vidual customer's publication; assume any credit responsibility for the accounts 
of a customer or guarantee any such account. No member shall for the purpose 
of influencing business encourage or permit lavish entertainment, permit bets or 
any form of gambling, make any loans, make sales of stock or other securities at 
less than the market value thereof, or permit the splitting or otherwise sharing of 
salesmen's commissions or compensation. No member will assume the expense 
of painting signs on customer's place of business advertising manufacturer's 
products except upon presentation of certified invoice from sign painter, in which 
event member is permitted to pay actual cost for such work. The term customer 
as used in this section shall mean an individual or corporation sold as a dealer, 
wholesaler or roofing contractor. 

Section 6. Inducing Sales by Other Products. — No member shall sell or offer 
for sale as inducement for the purchase of any industry products any article or 
commodity, whether an industry product or not, at prices below those generally 
quoted by the member for that article or commodity. 

Section 7. Defamation of Competitors. — No member shall defame or disparage 
a competitor, directly or indirectly, by words or acts which misrepresent its 
business integrity, its ability to perform its contracts, its credit standing, its 
policies, the grade, quality or quantity of its goods, or the origin of its products. 

Section 8. Misrepresentation. — No member shall sell or offer for sale any 
industry product for the purpose or with the effect of deceiving customers as to 
the quantity, quality, weight, size or grade of such products, or country of origin. 

Section 9. False Branding. — No member shall improperly mark, brand or 
label industry products, or make any misrepresentation in connection with the 
sale of any such products for the purpose or with the effect of misleading or 
deceiving purchasers with respect to the quantity, quality or grade, or the country 
of origin. 

Section 10. Standard Forms of Quotations and Contracts. — All quotations shall 
be made in accordance with the terms and conditions set forth in any standard 
forms of quotations adopted at any time by the Code Authority by unanimous 
vote and approved by the Administrator, and all contracts shall be made in 
accordance with the terms and conditions set forth in any standard forms of con- 
tract so adopted and approved, and no member shall depart from said standard terms 
and conditions in the making of any quotation or contract in any transaction. 

Section 11. Consignments. — No member of the Industry shall ship industry 
products on consignment, except under circumstances to be defined by the Code 
Authority, subject to the approval of the Administrator, where peculiar circum- 
stances of the Industry may require the practice. Distress stocks now on con- 
signment are not subject to the next to the last clause of Section 3 of this Exhibit. 
This Section 11 shall not apply to hardboard, quarter board and panel board for 
industrial uses. 

Section 12. Lump Sum Contracts. — No member shall accept any order for 
contracts of sale at a lump sum where the contract does not specify the exact 
quantity, quality and unit price of the product purchased. 

Section 13. Diversions. — No member shall divert shipments in transit for the 
purpose and with the intent of allowing concessions or reducing prices. 

Section 14. Outstanding Obligations. — No member shall sell any industry 
products at a price or on terms or conditions other than stated in the prices, 
terms and conditions of sale published and filed by such member. The following 
contracts however may be protected at the price at which the contract was taken 
but products sold under such protection shall be applied only on the contract for 
which such protection was given: 

(a) All bona fide contracts for the sale of industry products filed with the Code 
Authority or its designated agents at the time of the first filing of lists or schedules 
of prices and terms or conditions of sale as required by Article VII, Section 1 of 
this Code; 



346 

(b) All existing specific job contracts for roof insulation, industrial contracts, 
and government job contracts, for the sale of industry products at less than the 
member's filed price, provided the contracts, or such details with respect thereto 
as may be requested by the Code Authority, are filed with the Code Authority or 
its designated agent within ten (10) days after the effective date of this Code; 

(c) After the effective date of this Code, all specific roof job contracts closed on 
quotations outstanding prior to the effective date of any price increase filed by 
the member protecting the same and accepted within thirty (30) days (except that 
government jobs may be accepted within sixty (60) days) after such date; and 
industrial contracts for furnishing industry products after the effective date of 
any price increase filed by the member protecting the same but not extending 
beyond the date July 1, 1934, or such other date as may be designated, from time 
to time, by the Code Authority; provided, however, that in all such cases, the 
contract conforms to the prices, terms and conditions of sale filed by such member 
and current at the time the quotation or contract was made; and provided fur- 
ther, that all specific roof job contracts so protected, or such details thereof as 
may be requested by the Code Authority, are filed with said Code Authority or 
its designated agent within ten days after the specified period within which such 
contracts may be accepted, and that all such industrial contracts or details with 
respect thereto are so filed within ten days after the effective date of any such 
price increase. 

o 



Approved Code No. 354 
CODE OF FAIR COMPETITION 



FOR THE 



SMALL ARMS AND AMMUNITION MANUFACTURING 

INDUSTRY 

As Approved on March 22, 1934 



ORDER 



Approving Code of Fair Competition for the Small Arms 
and Ammunition 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 Small Arms and Ammunition Manufac- 
turing 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 (1) the provisions of Article II, Section 1, dealing with working 
hours be amended by inserting after the word "than" in the second 
line the words "eight (8) hours per day or", by deleting the period 
in the fifth line and inserting the words "; provided further that no 
employee shall work in excess of nine (9) hours a day or six days a 
week except as hereinafter provided"; (2) the provisions of Article 
II, Section 1, Subsection (c) dealing with employees working addi- 
tional hours be amended by deleting the period and inserting the 
words ", and provided further, that such hours shall not be availed 
of in more than fifteen (15) weeks in any year, nor more than forty- 
eight (48) hours in any week."; (3) the provisions of Article II, Section 
2, Subsection 2 dealing with minimum hourly rates be amended by 
deleting the remainder of the Section after the word "females" in 
the fifth line and inserting a period; (4) the provisions of Article \ II, 
Section 1, Subsection b, paragraph 1, dealing with resale price 
schedules be amended by deleting the words "resale price schedules , 

47886° 425-119 34 (347) 



348 

in the fourth line, by deleting the words "or resale" in the sixth and 
seventh lines, by deleting the remainder of the paragraph after the 
words "this Industry" in the seventh line; (5) the provisions of 
Article VII, Section 1, Subsection (b), paragraph 2, dealing with 
distribution of price schedules be amended by deleting the period 
at the end of the Section and inserting the words ", provided that the 
respective schedules of prices for each class of trade shall be available 
at all reasonable times to the bona-nde members of each class of trade 
served by the Industry; provided further, however, that consumers' 
prices shall be open to the public"; (6) the provisions of Article VII, 
Section 1, Subsection b, paragraph 5, dealing with resale price 
maintenance, be amended by deleting this entire section and inserting 
the following words "The Industry shall study and report to the 
Administrator recommendations in regard to resale price mainte- 
nance"; (7) Article XVI, dealing with waiving of constitutional 
rights, be deleted from the Code; (8) Article XVIII, dealing with 
consent by the members to modification, be deleted from the Code. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 
Approval recommended: 
W. A. Harriman, 

Division Administrator. 

Washington, D.C., 

March 22, 1934. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the Small 
Arms and Ammunition Manufacturing Industry, and on the hearing 
conducted thereon in Washington, D. C, September 27, 1933, in 
accordance with the provisions of the National Industrial Recovery 
Act. 

PROVISIONS AS TO WAGES AND HOURS 

This Code establishes a forty (40) hour week with permission to 
increase this to forty eight (48) hours per week for not more than 
twelve (12) weeks in any one (1) year. Employees in an adminis- 
trative or an executive capacity, supervisors, planners, and technical 
research engineers, receiving not less than $35 per week, and outside 
salesmen are excepted from the foregoing provision. Also the above 
minima do not apply in the case of emergencies involving possible 
loss of life or property. Repair men, shipping and delivery crews, 
and cleaners are also excepted, but it is provided that they may not 
work more than 10% in excess of the forty (40) hour or forty eight 
(48) hour maximum. Watchmen may work fifty six (56) hours per 
week, but not more than six (6) days in any one (1) week. 

Any employer may request an employee to work additional hours 
beyond those specified above, providing such additional hours shall 
be paid for at the rate of time and one-half. 

Minimum wages for accounting, clerical, office, service, or sales 
employees are fixed in accordance with the President's Reemploy- 
ment Agreement which provides a sliding scale of from fifteen dollars 
($15) per week to fourteen dollars ($14) per week, according to popu- 
lation. For all other employees, a minimum wage of forty cents 
(40^) per hour is established for males and thirty two and one-half 
cents (32>^) per hour for females, provided, however, that, in case 
the rate per hour for any female employee was, on Jul} 7 15, 1929, less 
than the rate above specified for the same class of labor, the mini- 
mum rate paid on July 15, 1929, may be paid, provided further that 
in no event it be less than thirty cents (30^) per hour. Beginners 
without experience may be employed for a period not to exceed sixty 
(60) days, at a rate not less than eighty per cent (80%) of the standard 
minimum wage, provided the total number of such beginners shall 
not exceed five per cent (5%) of the total number employed by any 
employer in any calendar month. 

The^ employment of any person under 16 years of age is prohibited, 
with a further provision that no person under 18 years of age may be 
employed in any hazardous occupation. 

(349) 



350 



GENERAL STATEMENT 



This Industry consists of companies which manufacture small 
arms and ammunition therefor, components thereof except propellent 
powder, and clay targets and traps. Some companies manufacture 
small arms only and some ammunition only. Others manufacture 
small arms and ammunition and clay targets and traps, and still 
others manufacture only clay targets or clay targets and traps. 

There are approximately 25 manufacturers in the Industry, each 
of whom had an opportunity for active participation in the prepara- 
tion of the Code, and it is interesting to note that those who did 
participate therein represented 100% in numbers and volume of those 
engaged in the manufacture of both small arms and ammunition and 
more than 90% of those engaged in the manufacture of small arms. 

As there has been no trade association covering the entire Small 
Arms and Ammunition Industry, statistical information is quite 
meager. 

The following figures illustrate the shrinkage which has taken place 
in the past five years: 



Year 



Invested 
Capital 



Net Sales 



1928 

1933 (Estimate). 



$48, 127, 3£9 
40, 221, 537 



$50,218,850 
20, 000, 000 



As a matter of national preparedness for defense, it is vitally impor- 
tant that this Industry should be maintained in a sound and stable 
condition; to enable it to function promptly and effectively in sup- 
port of the Government it is essential that its trained personnel 
be kept intact. These are the workers who after long periods of 
training have acquired the skill and experience necessary in directing 
operations in an Industry requiring a very high degree of mechanical 
and professional skill. 

To insure retention of this trained personnel the Industry is obliged 
to conduct its manufacturing operations so as to secure the greatest 
possible volume, and this makes it necessary to meet peak demands. 
Its inability to control these peak demands is due to the fact that its 
product is distributed largely to the consumer during the latter part 
of the year. The volume of this distribution is affected by various 
factors which cannot be foreseen, among which may be mentioned: 
sudden changes in state and federal regulations regarding open 
seasons, purchasing power of the farmer and conditions generally 
affecting hunting. 

It has been customary for the Industry to operate on a fifty five 
(55) hour weekly basis during peak periods. Under the President's 
Reemployment Agreement operations were reduced to forty (40) 
hours per week averaged over a three (3) months' period, with a re- 
sulting increase in employment of 28.6%. With the application of 
the provisions of this Code there will be a further increase in the 
number of employees, although it will not be substantially greater than 
that already in effect as a result of the President's Reemployment 
Agreement. The application of the minimum wages included in 
said Agreement has brought about an increase in the payrolls of the 



351 

Industry at the rate of $1,500,000 annually. In this case also the 
effectuation of the provisions of tins Code will augment this rate. 
It is not possible at this time to judge just what this increase will be; 
however, it should be borne in mind that the Code establishes a mini- 
mum wage for female employees of thirty two and one-half cents 
(32K^) per hour as compared to the rate of thirty cents (30ff) effective 
in July. Before this July period this class of employees was being 
compensated at a rate as low as twenty cents (20^) per hour. 

An important feature of the Code is the prohibition contained in 
Article XI against the sale in the United States of machine or sub- 
machine guns or parts thereof, except to governmental subdivisions 
or to organizations having regularly organized police departments 
where such sale is authorized by the United States Attorney General. 
Tins provision was suggested by the Department of Justice and has 
been accepted by the Industry. I believe it to be a forward and 
effective step in the Campaign against crime in this country. 

The Code makes provision for resale price maintenance. It does 
not establish any price maintenance as regards the sale of products to 
the consumer, but deals with open price lists and agreements of price 
maintenance between the manufacturers and the wholesalers in 
selling to the retailers. 

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 pro- 
ceedings in this matter; 

I find that: 

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

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

(c) The Code as approved complies in all respects with the pertinent 
provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection 
(b) of Section 10 thereof; and that the applicant group is an industrial 
group truly representative of the aforesaid Industry; and that said 
group imposes no inequitable restrictions on admission to membership 
therein. 

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

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



352 

(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, provided, 
however, that (1) the provisions of Article II, Section 1, dealing with 
working hours be amended by inserting after the word "than" in the 
second line the words "eight (8) hours per day or", by deleting the 
period in the fifth line and inserting the words " ; provided further 
that no employee shall work in excess of nine (9) hours a day or six 
days a week except as hereinafter provided"; (2) the provisions of 
Article II, Section 1, Subsection (c) dealing with employees working 
additional hours be amended by deleting the period and inserting the 
words ", and provided further, that such hours shall not be availed 
of in more than fifteen (15) weeks in any year, nor more than forty- 
eight (48) hours in any week"; (3) the provisions of Article II, Section 
2, Subsection 2 dealing with minimum hourly rates be amended by 
deleting the remainder of the Section after the word "females" in the 
fifth line and inserting a period; (4) the provisions of Article VII, 
Section 1, Subsection b, paragraph 1, dealing with resale price sched- 
ules be amended by deleting the words "resale price schedules", in 
the fourth line, by deleting the words "or resale" in the sixth and 
seventh lines, by deleting the remainder of the paragraph after the 
words "this Industry " in the seventh line ; (5) the provisions of Article 
VII, Section 1, Subsection (b), paragraph 2, dealing with distribution 
of price schedules be amended by deleting the period at the end of the 
Section and inserting the words ", provided that the respective 
schedules of prices for each class of trade shall be available at all rea- 
sonable times to the bona-fide members of each class of trade served 
by the Industry; provided further, however, that consumers' prices 
shall be open to the public"; (6) the provisions of Article VII, Section 
1, Subsection b, paragraph 5, dealing with resale price maintenance, 
be amended by deleting this entire section and inserting the following 
words "The Industry shall study and report to the Administrator 
recommendations in regard to resale price maintenance"; (7) Article 
XVI, dealing with waiving of constitutional rights, be deleted from 
the Code; (8) Article XVIII, dealing with consent by the members to 
modification, be deleted from the Code. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 

Maech 22, 1934. 



CODE OF FAIR COMPETITION FOR THE SMALL ARMS 
AND AMMUNITION MANUFACTURING INDUSTRY 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are submitted as a Code of 
Fair Competition for the Small Arms and Ammunition Manufacturing 
Industry, and upon approval by the President, shall be the standards 
of fair competition for tins Industry. 

Article I — Definitions 

(a) "Act" means the National Industrial Recovery Act. 

(b) "President" means the President of the United States of 
America. 

(c) " Administrator", as used in this Code, means the ADMIN- 
ISTRATOR appointed by the President to administer Title I of the 
National Industrial Recovery Act, and at the time in office. 

(d) The " Industry" means and includes the business of manu- 
facturing and/or selling by the manufacturer or selling by one known 
to the public as a manufacturer selling principally for resale, small 
arms and ammunition therefor; and components thereof, except 
propellent powders; and clay targets and traps therefor; but does 
not include jobbers, mail order houses, chain stores, and/or dealers. 

(e) "Code Authority" as used herein, means the Code Authority 
Committee created and described in Article VI hereinafter. 

(f) "Secretary" means the person designated by the Code 
Authority to act in that capacity for the Industry. 

(g) "Member of the Industry" means any one engaged in the 
Industry as an employer. 

(h) "Employee", as used herein, includes any person engaged in 
any phase of the Industry in any capacity receiving compensation 
for his services, irrespective of the method of payment of his com- 
pensation. 

(i) "Employer", as used herein, means any one by whom any 
such employee is compensated or employed. 

Article II — Hours of Labor and Rates of Pay 

SECTION 1 HOURS OF LABOR 

1. No person employed in the Industry shall be permitted to 
work more than forty (40) hours per week, provided that when 
necessary to meet seasonal demand, forty-eight (48) hours per week 
for twelve (12) weeks in any one year may be worked. 

(a) Provided, however, that repairmen, shipping and delivery 
crews, and cleaners shall be permitted to work not more than ten (10) 
per cent in excess of the hours prescribed in this Section 1. 

(b) Provided that watchmen may work fifty-six (56) hours per 
week, but not more than six (6) days in any one week. 

47S8G 425-119 34 2 (353) 



354 

(c) Provided further that any employee at the request of the em- 
ployer may work additional hours beyond those specified in the three 
preceding paragraphs, provided such additional hours shall be paid 
for at the rate of time and one-half. 

(d) Provided further that the above hours do not apply in the 
case of emergencies involving possible loss of life or property. 

(e) Provided further that nothing in the foregoing employment 
provisions shall apply to employees in an administrative or executive 
capacity, supervisors, planners, and technical and research engineers, 
receiving not less than $35.00 per week; and outside salesmen. 

(f) 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 maximum 
permitted herein. 1 

SECTION 2- — MINIMUM WAGES 

1. No employer in the Industry shall pay any accounting, clerical, 
office, service or sales employee at less than the rate of $15.00 per week 
in any city of more than 500,000 population, or in the immediate 
trade area of such city; at less than the rate of $14.50 per week in any 
city of between 250,000 and 500,000 population or in the immediate 
trade area of such city; or at less than the rate of $14.00 per week in 
any city of less than 250,000 population. 

2. No employer in the Industry shall pay any emploA'ee other than 
as specified in the next preceding paragraph (1), less than forty (40) 
cents per hour for males and thirty-two and one-half (32 %) cents per 
hour for females; provided, however, that in case the rate per hour for 
any female employee was, on July 15, 1929, less than the minimum 
rate above specified for the same class of labor, then the minimum rate 
for such class of labor shall be the rate paid on July 15, 1929, but in 
no event less than thirty (30) cents per hour. 

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

4. Equitable and reasonable adjustments of pay schedules of em- 
ployees, above the minimum, shall be made within thirty (30) days 
after the effective date of this Code by any employer who has not 
theretofore made such adjustments. The first reports of wages 
required to be filed under this Code shall contain all wage increases 
made since May 1, 1933. 

5. Female employees performing the same class of work as male 
employees shall receive the same rate of pay as male employees. 

6. Beginners without experience may be employed for a period not 
to exceed sixty (60) days, at the rate of not less than eighty (80) per 
cent of the minimum wages covered by Section 2 of this Article II, 
provided the total number of such beginners shall not exceed five (5) 
per cent of the total number employed by any employer in an} 7 
calendar month. 1 

Article III — Minors 

On and after the effective date, no employer in this Industry shall 
employ any person under the age of sixteen (16) years, and no person 
under the age of eighteen (18) years shall be employed in any hazard- 

1 See paragraph 2 of order approving this Code. 



355 

ous occupation. Each member of the Industry shall furnish the Code 
Authority a list of such hazardous occupations, if so requested. 

Article IV — Statutory Labor Provisions 

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

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

4. Labor agreements now in force between members and their 
employees shall be affected only by such provisions of this Code as 
may prescribe higher wages and shorter hours than are provided for 
in such agreements. 

5. Employees may be assigned to different kinds of work, but 
employers shall not reclassify employees or duties of occupations 
performed by employees so as to defeat the purpose of this Code. 

6. Every employer shall make reasonable provision for the safety 
and health of his employees at the place and during the hours of 
their employment, by complying with the laws of the State in which 
such employer's plant is located. 

7. All employers shall post copies of that portion of this Code 
pertaining to hours and wages in conspicuous places accessible to 
employees. 

Article V — Participation 

The expenses of administering the Code shall be borne by the 
members of the Industry. The Code Authority may, from time to 
time, cause to be made such assessments against the members of the 
Industry as the Code Authority shall deem proper, and such assess- 
ments shall be payable as such Code Authority shall specify. The 
assessments herein referred to shall be divided among the members 
of the Industry according to the relation each member's dollar sales 
bear to the total dollar sales of the Industry for the last preceding year. 

Article VI — Administration 

1. To further effectuate the policies of the Act and to supervise and 
enforce the provisions of this Code, a Code Authority, consisting of 
not more than nine (9) or less than seven (7) members, including the 
Chairman, no two (2) members of said Code Authority to be chosen 
from one company, shall be selected by the members of the Industry 
at a meeting thereof, after reasonable notice of said election has been 
sent to all members of the Industry, by a majority vote of those 
members of the Industry who are represented at the meeting, in per- 
son or by proxy, in number, and value of sales for the last preceding 
year. The members of the Code Authority shall serve for one year, 



356 

or until their successors shall have been chosen; and members of the 
Code Authority shall, by a majority vote, elect their own Chairman. 
The surviving members of the Code Authority shall fill any vacancy 
or vacancies occurring therein for the unexpired portion of the par- 
ticular term. In addition to the foregoing, the ADMINISTRATOR 
may appoint from one (1) to three (3) members of said Code Author- 
ity, without vote, and whose terms of office shall be so arranged that 
they do not expire concurrently. 

2. The Chairman of the Code Authority shall cause reasonable 
notice to be sent to all members of said Code Authority for all meetings 
thereof, specifying the time and place for holding the same. Each 
member of the Code Authority shall be entitled to one vote and a 
majority of the Code Authority shall be necessary to constitute a 
quorum for the transaction of business. The Code Authority shall 
select a Secretary and make such arrangements as may be neces- 
sary for administering this Code, subject to disapproval by the 
ADMINISTRATOR. 

3. Meetings of all the members of the Industry may be held from 
time to time for the purpose of considering and acting upon any 
matters relating to the administration of this Code. Upon request 
to the Code Authority, signed by any three members of the Industry, 
for an Industry meeting, the Code Authority shall forthwith call 
such meeting, by causing notice, not less than five (5) days in advance 
of such meeting, to be given to all other Industry members, speci- 
fying therein the purpose of the meeting and the time and place for 
holding the same. 

4. Each member of the Industry shall be entitled to one vote, either 
by company representative or duly authorized proxy, who wo aid 
have power to act. The presence of not less than seven (7) members 
of the Industry shall be necessary for the holding of an Industry 
meeting. Provided, however, that a majority vote in numbers, and 
value of sales for the last preceding year of those members who are in 
attendance or who are so represented at any such meeting, shall be 
necessary for the determination of any question, but a lesser number 
may adjourn the meeting from time to time. In the event of an equal 
division upon any question, the Chairman shall cast the deciding vote. 

5. The Code Authority shall, subject to review by the ADMINIS- 
TRATOR, or when requested by the ADMINISTRATOR or his 
representative, cause to be obtained from the members of the Industry, 
statistical data and information in such form and manner as not to 
disclose the individual figures, data and information of the respective 
members, except to the ADMINISTRATOR, if required by him, or 
to such disinterested person, or persons, as may be designated by the 
Code Authority, and as may be necessary to enforce the provisions of 
this Code, 

The Code Authority shall make available to the ADMINISTRA- 
TOR such reports, data and information, in the manner herein 
specified, or as may be required by the ADMINISTRATOR, and 
will assist in keeping the ADMINISTRATOR fully advised, and 
confer with such representative of the ADMINISTRATOR from 
time to time as requested, to consider and study any recommenda- 
tions presented on behalf of the ADMINISTRATOR or any mem- 
ber of the Industry regarding the operation, observance or adminis- 
tration of this Code. The Code Authority may delegate any of its 



357 

duties to such agents as it may appoint, which would not involve the 
disclosure of the individual data or information of the members of 
the Industry, or any information required to be treated confidentially 
as herein specified, except as otherwise herein permitted to be dis- 
closed. The ADMINISTRATOR, or his representative, with the 
approval of the President, may enter into agreements with the Code 
Authority on behalf of the members of the Industry, with their con- 
sent and approval relating to matters affecting the Industry, if, in 
the judgment of the President, such agreement will aid in effectuating 
the policy of the ACT, which agreements may be made in accordance 
with paragraph (a) of Section 4 of the ACT, and which do not con- 
flict with clause (2) of sub-section (a) of Section 3 of the xlCT. 

Article VII — Reports 

1. To provide for making available to the ADMINISTRATOR 
and members of the Industry, information to assist in further effec- 
tuating the policy of the ACT, each member of the Industry shall 
furnish, from time to time to the duly selected Secretary, reports, 
pertinent to the administration of this Code, properly certified when 
requested by the Code Authority, in such form and manner as herein, 
and as hereafter may be provided by the said Code Authority, subject 
to review by the ADMINISTRATOR, including the following: 

(a) Hours oj Labor and Wages. — (1) Report showing hours of work 
and rates of wages. 

(b) Publicity oj Price Lists. — (1) As used in this Article VII, the 
term "schedules" means and includes price schedules and discount 
sheets, resale price schedules, terms of payment, freight equalization 
points, and any allowances or conditions relating to or in any wise 
affecting the sale or resale of the products of this Industry. However, 
the term "resale" or "resales" as mentioned in this Article VII shall 
relate only to sales by those, who purchase from the members of this 
Industry, to others who buy to resell and who do not buy for use or 
consumption. 1 

(2) As soon as possible, after the effective date, as determined by 
the members of the Industry, and when so determined thereafter, all 
members shall file such schedules of prices with the Secretary from 
time to time, as and when made or issued, for immediate distribution 
to only those members of the Industry who manufacture and sell 
similar products. 1 

(3) Revised schedules covering said products may be so filed by 
any member of the Industry, for such immediate distribution from 
time to time thereafter to become effective upon the date or dates 
therein specified, but such revised schedules shall be filed with the 
Secretary five (5) business days in advance of the effective date or 
dates thereof. Any revised schedules subsequently filed by other 
members of the Industry during such five (5) business day period 
may be made effective on the same effective date of the revision pre- 
viously filed, provided such subsequently revised schedules do not 
contain prices relatively lower than those in said previously filed 
revision, — otherwise the five day provision shall apply. Schedules 
raising prices shall not require the above five (5) day notice and shall 
be subject to immediate cancellation by notice to the Secretary at any 

1 See paragraph 2 of order approving this Code. 



358 

time within two (2) weeks of the date of filing of such schedules in- 
creasing prices. 

(4) No member of the Industry shall sell, directly or indirectly, by 
any means whatsoever, any product of the Industry covered by the 
provisions of this Article VII, at a price lower or at a discount greater, 
or on more favorable terms or conditions than those provided in his 
current schedules. 

(5) The products of this Industry, to a very large degree, are resold 
and distributed by wholesalers, jobbers, and distributors to dealers, 
retailers and others, and the resale of such goods by such wholesalers, 
jobbers and/or distributors at a price or prices less than the manu- 
facturers' schedules, would be in conflict with the principles of the 
open price provisions contained in this Article VII. Accordingly, 
members of this Industry may enter into agreements not to resell the 
products of this Industry at prices and upon terms, discounts or 
conditions which are less or more favorable to the purchasers thereof, 
than those contained in the schedules of the manufacturers, who may 
be parties to such agreements, in effect at the time of any such resale 
or resales. 1 

(6) Except as otherwise specified herein, all reports mentioned in 
this Article VII, shall be filed with and distributed by the Secretary 
at such times and in such form and manner as may be determined 
by the Code Authority. 

Article VIII 

The practices and methods as set forth in the following paragraphs 
numbered 1 to 12 inclusive, including the sub-paragraphs thereof, 
in this Article VIII, are hereby designated as unfair methods of compe- 
tition, and indulgence by any member of the Industry in any of the 
same shall be a violation of this Code. 

1. Interference with Existing Contracts. — To knowingly interfere 
with an existing contract with a third party for the sale and purchase 
of products of this Industry, or to induce, attempt to induce, or 
assist a party to break any such existing contract; 

2. Gratuities, Free Small Arms and Ammunition, Samples and Tour- 
nament Program Advertising. — (a) To give prizes or contributions, or 
supply free, small arms, loaded paper shells or metallic cartridges to 
individual shooters, gun clubs or associations, rifle clubs or associations, 
dealers or jobbers for the purpose of stimulating interest in and good 
will for such products of any particular member of the Industry; 

(b) To quote prices lower than one's own current published resale 
prices on small arms or ammunition to individual shooters, gun clubs 
or associations, or rifle clubs or associations, for the purpose of stimulat- 
ing interest in or good will for such products of any particular member 
of the Industry; 

(c) To pay, furnish, give, or grant to any shooter or shooters any 
salaries, compensation, benefit, small arms, ammunition or special 
prize money for winning of matches or tournaments for the purpose of 
inducing such shooter or shooters to use the small arms or ammunition 
of the particular manufacturer; 

(d) To give samples or free small arms and/or ammunition to 
jobbers, dealers or others, except to bona fide and well-known writers 
of arms and ammunition articles for their personal use only ; a report 
of each such gift to be made to the Secretary at time of shipment; 

1 See paragraph 2 of order approving this Code. 



359 

(e) To place directly or indirectly in any shooting program, any 
advertisement for or on behalf of any member of the Industry or 
representative thereof; 

(f) To fail to abide by and support the rules and regulations of any 
shooting association or any similar organization which defines the 
amateur status of a shooter, and in any way, directly or indirectly, 
or through a representative, supply, free of charge or at less than the 
particular member's own resale prices to dealers, any amateur shooter 
with any of said products, or anything of value contrary to the rules 
and regulations of any such association or organization; 

Provided nothing herein shall preclude bona fide employees of any 
member of the Industry from competing in tournaments, or from 
using any of such described products of his own employer therein, 
without personal payment therefor. 

3. Commercial Bribery. — No member of the Industry shall give, 
permit to be given, or directly offer to give, anything of value for 
the purpose of influencing or rewarding the action of any employee, 
agent, or representative of another in relation to the business of the 
employer of such employee, the principal of such agent or the repre- 
sented party, without the knowledge of such employer, principal or 
party. Commercial bribery provisions shall not be construed to 
prohibit free and general distribution of articles commonly used for 
advertising, for commercial bribery as hereinabove defined ; 

4. Defamation of Competitors. — To make, cause or permit to be 
made, or published any false statement or misrepresentation of or 
concerning the business, policies, methods, or products of a competitor; 

5. Piracy of Trade Marks. — To imitate trade marks, trade names, 
slogans or other marks of identification, in which another has acquired 
good will, for the purpose and with the effect of misleading purchasers; 

6. False Advertising. — To make, cause, or permit to be made or 
published any false, untrue, or deceptive statement by way of adver- 
tising or otherwise; 

7. Misbranding. — To falsely mark or brand packages or products 
of this Industry, for the purpose or with the effect of misleading or 
deceiving purchasers or others with respect to quality, quantity, 
character, grade or substance thereof; 

8. False Invoicing. — To withhold from or insert in an invoice 
anything which would make the invoice a false record, wholly or in 
part, of the transaction in question, or make any arrangement which 
would contemplate payment or settlement contrary to the face of 
the invoice; 

9. Post-Bate or Pre-Date Contract or Invoice. — To post-date or 
pre-date any contract or invoice covering products of this Industry; 

10. Guaranty Against Price Decline. — To guarantee against price 
decline except as the same may be limited to the decline of the particu- 
lar member of the Industry, and such guaranty shall apply only to 
small arms purchased directly from the manufacturer in the same 
calendar year, and to ammunition purchased directly from the manu- 
facturer during any twelve months commencing with March 1, and in 
each instance which are not delivered or which are in the hands of the 
purchaser and unsold; 

11. Consignments. — To make or enter into any agreement or con- 
tract, the effect of which will amount to the sale and/or delivery on 
consignmeut of any products of this Industry, except powder supplied 



360 

to ammunition companies, or to the lending of products for display 
purposes only; provided however, that no existing agreements of this 
nature shall be continued on and after the effective date of this Code; 
12. Secret Rebates. — To pay or allow secretly, rebates, refunds, 
commissions or discounts, whether in the form of money or otherwise, 
except such as are obligatory under existing agreements, but in no 
case shall any such agreement apply to any transactions or shipments 
on and after the effective date of this Code. 

Article IX 

1. If formal complaint has been made to the Secretary that any 
provision of this Code has been violated by any such member, the 
Code Authority shall cause the facts to be investigated, and to that 
end may cause such reasonable examination or audit as may be neces- 
sary, by a competent or disinterested person or persons mutually 
agreed upon by the Code Authority and such member against whom 
the complaint has been made, or by such person or persons nominated 
by the Code Authority and approved by the ADMINISTRATOR. 
PROVIDED, if it should appear that any reports or data called for 
by this Code were willfully made inaccurate or not filed by any such 
member when and as herein required, or that any such member had 
indulged in any trade practice in violation of tins Code, the expenses 
of such verifying work shall be paid by the party so in default. 

2. Since any violation of the provisions of this Code will cause 
injury to members of the Industry and the amount of such injury 
would not be readily ascertainable, it is therefore agreed by and 
between all such members of the Industry who have so expressly, in 
writing or otherwise, assented to the provisions of this Article IX that 
each of such members who violates any provision of this Code shall 
pay to the Secretary, or such person as the Code Authority may 
designate, as and for liquidated damages, such sum as the Code 
Authority, or the ADMINISTRATOR, may determine, not exceed- 
ing, however, five hundred dollars ($500.00) for each violation, in 
addition to any other sums required to be paid by the provisions of 
this Code. Any and all moneys which may be paid to the Secretary 
as and for such liquidated damages shall be used for the expense of 
administering the Code, or otherwise, as may be determined by the 
Code Authority. 

Article X 

1. The Code Authoritv may investigate and inform the President 
or the ADMINISTRATOR on behalf of the Industry: 1st: As to the 
importation into the United States of commodities competitive with 
products of this Industry selling on a price basis which undersell said 
products of domestic manufacture; and 

2nd: As to the manufacture of articles competitive with products 
of this Industry by the Government of the United States at its 
various Arsenals under longer schedules of hours of labor and/or 
lower rates of pay than the standards o hours and rates of pay estab- 
lished by this Code, and selling on a price basis which undersells 
such commodities by members of this Industiy; and 

3rd: As to the extent to which such underselling of said imports 
and United States Government manufactured articles, as well as 



361 

the extent to which the schedule of hours of labor and rates of pay 
adopted and followed by the Government of the United States in 
the manufacture of such goods, renders ineffective or seriously 
interferes with the maintenance of this Code. 

2. The conditions as set forth in the preceding three subpara- 
graphs, may be made the basis for complaint to the President or 
the ADMINISTRATOR on behalf of this Industry. 

3. Except as may be subsequently set forth in a specific or supple- 
mentary Export Code for the Industry, the provisions of this Code 
now or hereafter adopted with regard to prices, discounts, deduc- 
tions, allowances, extras, commissions, or methods and/or terms of 
sale, are not to apply to direct export sales or to sales in course of 
export (i.e., sales destined ultimately for export) or to sales of 
materials used in the manufacture of products for export. 

Article XI 

Members of the Industry shall have the right to sell or otherwise 
dispose of machine guns or sub-machine guns or parts therefor only 
to the United States Government, any State, Territory, or possession 
of the United States, and political sub-division thereof and the District 
of Columbia; provided that with the consent of the United States 
Attorney General they may be disposed of to National, State banks 
or to corporations or other business associations having regularly 
organized police departments, and to manufacturers of ammunition 
in the United States for testing purposes ; provided further, that such 
members shall have the right to sell machine or sub-machine guns or 
parts thereof for export under such rules and regulations as may be 
promulgated by the United States Secretary of State. 

Article XII 

During any emergency involving actual or possible National 
defense, the provisions of this Code establishing maximum hours of 
labor shall not apply to the manufacture of such of the products of 
this Industry as are demanded by the War and Navy Departments. 

Article XIII 

Such of the provisions of this Code as are not required to be in- 
cluded herein by the National Industrial Recovery Act may, with the 
approval of the ADMINISTRATOR, be modified or eliminated as 
changes in circumstances or experience may indicate. It is contem- 
plated that from time to time supplementary provisions to this Code 
or additional Codes will be submitted for approval of the ADMINIS- 
TRATOR, to prevent unfair competition in price, and other unfair 
and destructive competitive practices, and to effectuate the other 
purposes and policies of Title I of the ACT. Such supplemental 
provisions or additional Codes when approved by the ADMINIS- 
TRATOR shall have the same force and effect as any other provisions 
of this Code. 

Article XIV 

If any employer in the Industry is also an employer in any other 
Industry, the provisions of this Code shall apply to and affect only 



362 

that part of the business of such employer which is included in this 
Code. 

Article XV 

The President, in accordance with the provisions of subsection (b) 
of Section 10 of the National Industrial Recovery Act, may from time 
to time, cancel or modify any order, approval license, rule or regula- 
tion issued under Title I of said ACT. 

Article XVI 

By presenting this Code, those assenting hereto are not thereby 
waiving any of their constitutional rights which might be infringed 
by any of the provisions of the National Industrial Recovery Act. 2 

Article XVII 

Within each State members of the Industry shall comply with 
any laws of such State imposing more stringent requirements upon 
employers than as set forth in this Code relating to hours of work, 
wages, or age of employees. 

Article XVIII 

By presenting this Code, the members of the Industry do not 
thereby consent to any modification thereof, and they hereby reserve 
the right to object individually or jointly to any such modification. 2 

Article XIX 

No employer shall use any subterfuge to frustrate the spirit and 
intent of this Code. 

Article XX 

Any action taken by the Code Authority or other group within 
the Industry for the purpose of making effective provisions of this 
Code may be submitted to the ADMINISTRATOR for approval, 
and shall, in any case, be subject to the disapproval of the ADMIN- 
ISTRATOR. 

Article XXI 

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

2 Deleted as per paragraph 2 of order approving this Code. 



363 
Article XXII 

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 XXIII 

The effective date of this Code shall be 12.01 A.M. the second 
Monday after this Code shall have been approved by the President. 

Approved Code No. 354. 
Registry No. 1109-1-01. 

o 



Approved Code No. 355 
CODE OF FAIR COMPETITION 

FOR THE 

RUG CHEMICAL PROCESSING TRADE 

As Approved on March 23, 1934 



ORDER 



Code or Fair Competition for the Rug Chemical Processing 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 Rug Chemical Processing 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 Re- 
covery, 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. 

Hugh S. Johnson, 
Administrator of Industrial Recovery. 

Approval recommended : 
A. D. Whiteside, 

Division Administrator. 

Washington, D.C., 

March 23, 193 Jf. 

48300°— — 425-129 34 (365) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Hearing on the Code of Fair Competition for the Rug 
Chemical Processing Trade was held in the Ambassador Hotel. 
Washington, D.C., on January 4, 1934. The Code, which is at- 
tached, was presented by duly qualified and authorized representa- 
tives of the trade, complying with statutory requirements, said to 
represent 100 percent in number and volume of the trade. 

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 Indus- 
trial Advisory Board, the Consumers' Advisory Board, the Labor 
Advisory Board, the Legal Division, and the Division of Economic 
Research and Planning. 

CHARACTERISTICS OF THE TRADE 

A large number of antique and semi-antique Oriental rugs have 
entered into this country during the past forty or more years, but 
the source of supply from the Near East became exhausted in a rela- 
tively short time. An increasing demand for reproductions stimu- 
lated the weaving of new rugs especially for the American market. 
However, new Oriental rugs are not readily marketable in this coun- 
try, owing to their crudeness in texture and harshness in color. This 
led to the formation of a line of trade peculiarly adapted to process- 
ing rugs. It might be said that the processes used by the members 
of this trade are the results obtained after a number of years of 
experimentation. 

This trade is a highly integrated one, in which prosperity is de- 
pendent upon the quantity of Oriental rug imports and in which 
service charges are determined by personal contacts and bargaining 
of the members of this trade with the importers. Perhaps, more than 
90 percent of Oriental rugs imported in this country are turned over 
to this trade. These rugs pass through a chemical mercerization 
process which produces a lustre or sheen over the original harsh 
woven pile surface. After this process, some rugs are hand colored 
in order to reduce the vivid colors woven in them. The application 
of each color requires a separate washing and drying. When neces- 
sary, the rugs are sheared, and finally the fringes are trimmed and 
tinted. It takes approximately three weeks to complete this work. 

As this work is of a highly specialized nature, requiring knowl- 
edge not commonly gained in this country, successful operation in 
the business has been limited to nine firms, of which eight are lo- 
cated in the metropolitan area of New York City and one in Nutley, 
New Jersey, not far away. 

(366) 



367 

LABOR PROVISIONS 

On the basis of figures submitted by the trade, it is estimated that 
there were approximately 1,300 employees in the Rug Chemical 
Processing Trade in 1929, and that employment declined about 60 
percent between 1929 and 1933. 

Hours of employment are limited to 40 hours in any one week, 
with the following exceptions: maintenance employees shall be per- 
mitted to work 48 hours in any one week and watchmen are per- 
mitted 56 hours in any one week; executives, foremen, and super- 
intendents are allowed unlimited hours. During a peak period not 
to exceed more than 8 weeks in the Spring and not more than 12 
weeks in the Autumn, maintenance employees may be permitted to 
work 54 hours in any one week and other employees may be per- 
mitted to work 48 hours in any one week, provided that time and 
one third (1%) shall be paid for hours worked in excess of the 
maximum hours provided in the Code. 

The Code provides minimum wages for accounting, clerical and 
office employees at the rate of $15.00 a week in cities of over 500,000 
population; $14.50 a week in any city between 250,000 and 500,000 
population ; and not less than $14.00 a week in any place of less than 
250,000 population. No other employee shall be paid at less than 
the rate of 30 cents an hour. However, learners, office boys and 
messengers may be paid 80 percent of the prescribed minimum rate 
of wage. 

TRADE PRACTICES 

Provisions have been incorporated in the Code to eliminate unfair 
practices which have developed in the trade to the detriment of all 
interests. The trade has sought to eradicate such practices by 
making them violations of the Code. 

FINDINGS 

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

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will 
provide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 
groups, by inducing and maintaining united action of labor and 
management under adequate governmental sanctions and supervi- 
sion, 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 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. 



368 

(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) oi Section 10 thereof; and that the applicant 
association is an industrial association truly representative of the 
aforesaid trade; and that said association imposes no inequitable 
restrictions on admission to membership therein. 

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

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

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

For these reasons, this Code has been approved. 
Kespectfully, 

Hugh S. Johnson, 

Administrator. 
March 23, 1934. 



CODE OF FAIR COMPETITION FOR THE RUG CHEMICAL 
PROCESSING TRADE 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Rug Chemical Processing 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 " Rug Chemical Processing Trade " as used herein 
includes mercerizing, recoloring and finishing domestic and imported 
rugs and carpets. 

The term " employee " as used herein includes any person engaged 
in any phase of the trade in any capacity receiving compensation 
for his services, irrespective of the nature or method of payment of 
such compensation, 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 " executive " as used herein includes any employee solely 
responsible for the management of a division of the trade or of a 
recognized subdivision. 

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 " mercerization only " as used herein means the applica- 
tion of a chemical mercerization process to rugs, which acts upon the 
fibre and produces a sheen or lustre. 

The term " mercerization and color work " as used herein means 
the application of a chemical mercerization process to rugs, which 
acts upon the fibre and produces a sheen or lustre, and the recoloring 
of the individual patterns. 

The term " finishing " as used herein means the shearing of sur- 
face and the repairing of fringes on rugs to improve their appear- 
ance incidental to mercerizing and coloring. 

The term " trade area " as used herein shall mean any area 
designated as a trade area by the Code Authority and approved 
by the Administrator. 

The term " association " as used herein means the Rug Chemical 
Processing Association — a Trade Association. 

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

Population for the purposes of this Code shall be determined by 
the 1930 Federal Census. 

(369) 



370 

Article III — Hours 

1. Except as hereinafter expressly stipulated otherwise — 

(a) No maintenance employee shall be permitted to work in excess 
of forty-eight (48) hours in any one (1) week. 

(b) No other employee shall be permitted to work in excess of 
forty (40) hours in any one (1) week. 

2. During a peak period not to exceed more than eight (8) weeks 
in the Spring and not more than twelve (12) weeks in the Autumn, 
maintenance employees may be permitted to work fifty-four (54) 
hours in any one (1) week and other employees may be permitted 
to work forty-eight (48) hours in any one (1) week, providing that 
time and one third (1%) shall be paid for hours worked in excess 
of the maximum hours provided in Section 1 (a) and (b). 

3. The maximum hours fixed in this Article shall not apply to: 

(a) Watchmen who may not be permitted to work more than 
fifty six (56) hours in any one week and in no case may they *w T ork 
more than six (6) days in any seven (7) day period. 

(b) Executives, foremen and superintendents receiving a salary of 
thirty-five dollars ($35.00) or more a week. 

(c) Employees on emergency maintenance or emergency repair 
work involving breakdowns or protection of life or property, but in 
any such cases at least one and one third (lVs) times the normal 
rate shall be paid for hours worked in excess of the maximum hours 
provided in Section 1 (a) and (b). 

4. 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, exceeds the maximum permitted herein. 

5. No employee shall be permitted to work in excess of six (6) 
days in any seven (7) day period. 

Article IV — Wages 

1. No employee except as hereinafter specified shall be paid at less 
than the rate of thirty cents ($.30) an hour. 

'2. No accounting, clerical or office employees shall be paid at less 
than the rate of fifteen dollars ($15.00) a week in any city of over 
500,000 population, or in the trade area of such city; nor "less than 
fourteen dollars and fifty cents ($14.50) a week in any city between 
250,000 and 500,000 population, or in the trade area of such city ; nor 
less than fourteen dollars ($14.00) a week in any place of less than 
250,000 population. 

3. The wages and rates of pay of employees receiving more than 
the minimum wages and rates hereinabove prescribed shall be re- 
adjusted so as to preserve equitable differentials. All such adjust- 
ments made since June 16, 1933, shall be reported to the Code Au- 
thority within sixty (60) days of the effective date of the Code. 

4. No member or the trade, by reason of the adoption of this Code, 
shall reduce any employee's total weekly wage or that wage actually 
received on June 16, 1933, whichever shall be the greater, whether 
based on an hourly rate or a weekly wage, notwithstanding the fact 
that the hours of work of such employees may be reduced. 

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



371 

6. The minimum wage provided for in Section 1 of this Article 
shall not apply to learners, office boys, and messengers, provided 
that the minimum rate of compensation for these employees shall 
not be less than eighty percent (80%) of the minimum rates estab- 
lished in Section 1 of this Article, and the total number of persons 
so compensated shall not exceed ten percent (10%) of the total 
number of employees engaged by an employer. Learners shall not 
be employed as such for a period in excess of eight (8) weeks. 

Article V — General Labor Provisions 

1. No person under seventeen (17) years of age shall be employed 
in the trade. In any State an employer shall be deemed to have 
complied with this provision if he shall have on file a certificate or 
permit duly issued by the authority in such State empowered to 
issue employment or age certificates or permits, showing that the 
employee is of the required age. 

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

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

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

5. 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. Upon approval by 
the Administrator such standards shall become operative as a part 
of this Code. 

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

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

8. Each employer shall post complete copies of this Code in con- 
spicuous places accessible to employees. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

organization and constitution 

1. There shall forthwith be constituted a Code Authority con- 
sisting of: 

(a) Three (3) representatives of the trade or such other number 
as may be approved from time to time by the Administrator', to be 
selected as hereinafter provided. 



372 

(b) Such additional members, without vote, not to exceed three 
(3), as the Administrator may appoint to represent such groups or 
interests or such governmental agencies and for such periods as he 
may designate. 

2. The representatives of the trade shall be selected in the fol- 
lowing manner : 

(a) Three (3) individuals shall be appointed by the Board of 
Directors of the Rug Chemical Processing Association. 

The foregoing individuals shall be appointed immediately after 
the approval of this Code, and shall hold office until December 31, 
1934, and thereafter until their successors are appointed and qualify. 
Their successors shall be appointed for a term of one (1) year on or 
before December 31st of each year. Appointments of successors 
(which may include reappointments of original individuals) shall be 
made, and vacancies for unexpired terms may be filled in the same 
manner and by the same agencies as the original appointments. 

(b) Additional representatives of the trade may be appointed by 
the Administrator or selected in a manner prescribed by him. 

3. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 
bylaws, regulations, and any amendments when made thereto, 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 prescribe such hearings 
as he may deem proper; and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an 
appropriate modification in the method of selection of the Code 
Authority. 

5. Members of the trade shall be entitled to participate in and 
share the benefits of the activities of the Code Authority by assent- 
ing to and complying with the requirements of this Code and sus- 
taining their reasonable share of the expenses of its administration. 
JSuch reasonable share of the expenses of administration shall be 
determined 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. 

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

7. If the Administrator shall determine that any action of the 
Code Authority or any agency thereof may be unfair or unjust or 



373 

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. 

POWERS AND DUTIES 

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

(a) To insure the execution of the provisions of this Code and to 
provide, subject to rules and regulations established by the Admin- 
istrator, for the compliance of the trade with the provisions of the 
Act; provided, however, that this shall not be construed to deprive 
duly authorized governmental agencies of their power to enforce 
the provisions of this Code or of the Act. 

(b) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of this 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. 

(c) To obtain from members of the trade such information and 
reports as are required for the administration of the Code, and in 
addition to information required to be submitted to any Code Au- 
thority all or any of the persons subject to this Code shall furnish 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act, to such 
Federal and State Agencies as the Administrator may designate; 
nor shall anything in this Code relieve any person of existing obli- 
gations to furnish reports to governmental agencies. No individual 
reports shall be disclosed to any other member of the trade or any 
other party except to such governmental agencies as may be directed 
by the Administrator. 

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

(e) To appoint a trade practice committee which shall meet with 
the trade practice committees appointed under such other codes as 
may be related to the trade for the purpose of formulating fair 
trade practices to govern the relationships between employers under 
this Code and under such others to the end that such fair trade 
practices may be proposed to the Administrator as amendments to 
this Code and such other codes. 

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



374 

(g) To cooperate with the Administrator in regulating the use 
of any N.R.A. insignia solely by those members of the trade who 
have assented to. and are complying with, this Code, 

(h) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provisions 
to govern members of the trade in their relations with each other or 
with other trades or industries, measures for industrial planning, 
and stabilization of employment; and including modifications of this 
Code which shall become effective as part hereof upon approval by 
the Administrator after such notice and hearing as he may specify. 

(i) The Code Authority shall cause to be formulated an account- 
ing system and methods of cost finding and/or estimating capable 
of use by all members of the trade. 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 meth- 
ods. The Code Authority shall also devise and establish, subject to 
the approval of the Administrator, a uniform invoice and receipt 
adaptable to the needs of the trade. 

Article VII — Open Price Data 

1. Each member of the trade shall file with the Code Authority 
and publish to the trade lists of his prices and also any revision of 
prices, which shall be immediately forwarded to all members of the 
trade. If any member of the trade desires to revise any of his prices 
he shall file with the Code Authority any such revision, which shall 
become effective immediately. Any such revision shall be forwarded 
immediately to all members of the trade, who, thereupon, may file 
any revision, which shall become effective immediately. 

2. No member of the trade shall sell any service for less than his 
published list prices, except as qualified by Article VIII, Section 12. 

Article VIII — Trade Practices 

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

1. Using, publishing, or broadcasting any untrue, deceptive, or 
misleading representation, statement, or illustration in connection 
with the service rendered by the trade. 

2. The defamation of competitors by falsety imputing to them 
dishonorable conduct, questionable credit standing, inability to per- 
form contracts or by other false representations or by the false dis- 
paragement of the quality of their service. 

3. Giving, permitting to be given, or directly offering to give, any- 
thing of value for the purpose of influencing or rewarding the action 
of any emplo} T ee, agent or representative of another in relation to 
the business of the employer of such employee, the principal of such 
agent, or the represented party, without the knowledge of such em- 
ployer, principal or party. This provision shall not be construed to 
prohibit free and general distribution of articles commonly used for 



375 

advertising except so far as such articles are actually used for com- 
mercial bribery as herein defined. 

4. Inducing or attempting to induce the breach of a contract be- 
tween a competitor and his customer, or interfering with or obstruct- 
ing the performance of any such contractual duties or services. 

5. Securing confidential information concerning the business of 
a competitor by a false or misleading statement or representation, 
by bribery, or by any other unfair method. 

6. 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 customers of special 
services or privileges not extended to all customers on like conditions 
and terms. 

7. Intentionally short measuring merchandise delivered for 
processing. 

8. Purchasing rugs from any customer under a claim that they 
are damaged unless the rugs are actually damaged. 

9. Quoting terms other than those contained in the uniform 
invoice or receipt devised by the Code Authority and approved by 
the Administrator or postdating bills for mercerization only or mer- 
cerization and recolor work. 

10. Purchasing merchandise from a customer, or advancing money 
or extending credit to a customer or prospective customer for the 
payment of import duties, or financing a customer or prospective 
customer to unfairly influence such customer for the purpose of se- 
curing and/or obtaining his business. 

11. Labeling and/or charging for a rug other than by the name 
recognized in the trade or misrepresenting the grade of any rug 
as other than the grade recognized in the trade. 

12. Rendering any service at a price below the cost of such service 
determined in accordance with the cost accounting plan devised by 
the Code Authority and approved by the Administrator, provided, 
however, that any member may meet the price of a competitor that 
is not in violation of this Code. 

Article IX — Modification 

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

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



376 
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 discrimi- 
nate against small enterprises. 

Article XI — Effective Date 

This Code shall become effective on the first Monday after its 
approval by the Administrator. 

Approved Code No. 355. 
Registry No. 214r-05. 

o 



Approved Code No. 356 
CODE OF FAIR COMPETITION 

FOR THE 

FULLERS EARTH PRODUCING AND MARKETING 

INDUSTRY 

As Approved on March 23, 1934 



ORDER 



Approving Code of Fair Competition for the Fuller's Earth 
Producing and Marketing 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 Fuller's Earth Producing and Marketing 
Industry, and hearings having been duly held thereon and the an- 
nexed report on said Code, containing the findings with respect 
thereto, having been made and directed to the President : 

NOW. THEREFORE, on behalf of the President of the United 
States, I. Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and 
purposes of said Title of said Act; and do hereby order that said 
Code of Fair Competition be and it is hereby approved; provided, 
however, that the provisions of Article VIII, (Section I) insofar 
as they prescribe a waiting period between the filing with the Code 
Authority and the effective date of revised price lists or revised 
terms and conditions of sale be and they are hereby stayed pending 
my further Order either within a period of sixty days from the 
effective date of this Code or after the completion of a study of 
open price associations now being conducted by the National 
Recovery Administration. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
A. R. Glancy 

Division Administrator. 

Washington, D.C., 

March 23, 1934. 

48301° 425-130 34 (377) 



REPORT TO THE PRESIDENT 

The President, 

The White Bouse. 
Sir: This is a report on the Code of Fair Competition for the 
Fullers Earth Producing and Marketing Industry, a hearing on 
which was conducted in Washington on the second of January, 
1934, and reconvened on the fifth of January, 1934, in accordance 
with the provisions of the National Industrial Recovery Act. 

PROVISIONS OF THE CODE AS TO WAGES AND HOURS 

This Code provides for a maximum work week of forty hours as 
averaged over a six months period, forty-eight hours in any one 
week, and a maximum working day of ten hours. Exceptions are 
provided for watchmen, who may work fifty-six hours per week, and 
for engineers, firemen, electricians and laboratory staff, who are 
limited in number and may work forty-eight hours per week. Limi- 
tations on working time do not apply to executives, managers or 
supervisors who earn not less than $35.00 per week, nor to travel- 
ling salesmen, nor to employees engaged in emergency maintenance 
or repair work; the latter class being paid at the rate of time and 
one-half for all time worked in excess of the basic maximum work- 
ing limits. 

The Code provides for minimum hourly rates of pay of 35 cents 
in the North, 30 cents in the intermediate zone, and 24 cents in the 
South. A provision is made for maintaining existing wage differen- 
tials. Clerical and office employees are to be paid not less than $15.00 
per week in the North, nor less than $14.00 per week elsewhere. 

No person under sixteen years of age may be employed, and no 
person under eighteen years of age may work at hazardous or un- 
healthy occupations. 

ECONOMIC EFFECTS OF THE CODE 

The Research and Planning Division estimates that there were 
about 1,013 employees in this Industry during 1933, and the Code 
Committee estimates that the 1932 invested capital was $3,660,000 
with a production volume of about $1,360,000. 

Under the existing low volume of production, the codal limits on 
working time will not be effective in spreading employment to any 
important degree. However, with any increase in business, the 
hourly and weekly limits provided will require additional employees. 
The codal minimum wage provisions represent a substantial in- 
crease over rates being paid before August first, 1933, and an increase 
over minimum rates in 1929. From available information it appears 
that codal weekly incomes, despite shorter hours worked, will be 

(378) 



379 

greater than the average 1929 weekly income adjusted to present 
purchasing power. 

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 rind that: 

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

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

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

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

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

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

For these reasons, therefore, I have approved this Code. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
March 23, 1934. 



CODE OF FAIK COMPETITION FOE THE FULLER'S 
EARTH PRODUCING AND MARKETING INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Code of 
Fair Competition for the Fuller's Earth Producing and Marketing 
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 " Fuller's Earth " means a natural claylike mineral 
substance used primarily in granular form for decolorizing or filter- 
ing oils and fats. 

2. The term " Industry " as used herein includes the mining, 
and/or manufacturing, and/or selling by those who mine and/or 
manufacture Fuller's Earth as herein defined 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. 

3. The term " Member of the Industry " includes any individual, 
partnership, association, corporation, or other person engaged in the 
industry, either as an employer or on his or its own behalf. In the 
case o,f members of the industry comprising a complete or integrated 
unit in such industry, whether by stock ownership, affiliation or 
otherwise, such members shall be construed to mean a single unit or 
member and shall be so considered in the administration of this 
Code. 

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

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

6. The terms "Act " and u x\dministrator " as used herein shall 
mean, respectively, Title I of the National Industrial Recovery Act 
and the Administrator for Industrial Recovery. 

7. The term " Period of free credit " means the period of time 
between the date of a shipment of a product to the purchaser and 
the date from and after which such purchaser shall be required to 
pay the purchase price of such product. 

Article III — Hours 

1. Except those employees who are specifically provided for else- 
where in this Article, no employee shall be permitted to work in 
excess of forty (40) hours per week averaged over a semi-annual 

(380) 



381 

period, either from January first to June thirtieth or from July first 
to December thirty-first, and the maximum hours of work for any 
employee during any one week shall not exceed forty-eight (48) 
hours. Except those employees specifically provided for elsewhere 
in this Article, no employee shall be permitted to work in excess of 
ten (10) hours in any twenty-four (24) hour period. 

2. Watchmen shall not be employed more than fifty-six (56) hours 
in any one week. 

3. Engineers, firemen, electricians and laboratory staff shall not be 
permitted to work in excess of forty-eight (48) hours in any one 
week; provided, however, that this tolerance of working time in 
excess of the hours provided in Section 1 of this Article shall apply 
to not more than ten percent (10%) of the total number of employees 
in any one plant, or to not more than four (4) employees in any one 
plant, whichever number is the greater in any case. 

4. No person employed in clerical or office work shall be per- 
mitted to work in excess of forty (40) hours in any one week. 

5. The provisions of this Article shall not apply to persons em- 
ployed in any executive, managerial or supervisory capacity, or to 
technical assistants, who earn not less than $35.00 per week; or to 
traveling salesmen. 

6. The maximum hours fixed in Section 1 of this Article shall 
not apply to any employee on emergency maintenance or emergency 
repair work involving break-downs or protection of life or property, 
but in any such case at least one and one-half times his normal rate 
shall be paid for hours worked in excess of the maximum hours 
therein provided. 

7. 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 — Minimum Wage 

1. No employee shall be paid at less than the hourly rate of thirty- 
five cents (35?) with the following exceptions : 

(a) In the States of North Carolina, Virginia, Kentucky, Arkan- 
sas, Oklahoma, Texas and Louisiana no such employee shall be paid 
at less than the hourly rate of 30c\ 

(b) In the States of Mississippi, Alabama, Florida, Georgia and 
South Carolina no such employee shall be paid at less than the 
hourly rate of 24c\ 

2. Rates of pay in excess of the minimum herein prescribed shall 
be increased by a sum which shall at least maintain the differentials 
existing on July fifteenth, 1933; and in no case shall hourly rates 
of pay be reduced. 

3. No employee in clerical or office work shall be paid less than at 
the rate of $15.00 per week, except that in the States specified in 
subsections (a) and (b) of Section 1 of this Article such employees 
shall be paid at the rate of not less than $14.00 per week. 

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



382 
Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed in 
the industry. No person under eighteen (18) years of age shall be 
employed at operations or occupations which are hazardous in na- 
ture or dangerous to health. In any State an employer shall be 
deemed to have complied with this provision as to age if he shall 
have on file a certificate or permit duly 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. It is provided : 

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

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

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

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

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

5. No employee shall be required as a condition of employment 
to trade at a store owned or specified by an employer. 

6. Employees, other than maintenance, supervisory men or those 
necessary to protect property, shall not be required as a condition 
of employment to live in houses rented from or specified by the 
employer. 

7. All employers shall post and thereafter maintain complete 
copies of this Code in conspicuous places, easily accessible to 
employees. 

8. 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 for approval 
within six months after the effective date of this Code. 

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

Authority 

1. There shall forthwith be constituted a Code Authority consist- 
ing of four (4) members to be chosen by the Industry through a fair 
method of selection approved by the Administrator. 



383 

2. In addition to membership as above provided, there may be not 
more than three members, without vote, to be appointed by the 
Administrator to serve for a term of from six months to one year 
as specified in the order of appointment. Administrative members 
shall be notified of, and may sit at all meetings of the Code 
Authority. 

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

4. Members of the industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority and to 
participate in the selection of the members thereof by assenting to 
and complying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. 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. 

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

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

(a) To insure the execution of the provisions of this Code and 
provide for the compliance of the industry with the provisions 
of the Act. 

(b) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. 

(c) To obtain from members of the industry such information and 
reports as are required for the administration of the Code and to 
provide for submission by members of such information and reports 
as the Administrator may deem necessary for the purposes recited 
in Section 3 (a) of the Act, which information and reports shall be 
submitted by members to such administrative and/or government 
agencies as the Administrator may designate ; provided that nothing 
in this Code shall relieve any member of the industry of any exist- 
ing obligations to furnish reports to any government agency. No 
individual reports shall be disclosed to any other member of the 
industry or any other party except to such governmental agencies 
as may be directed by the Administrator. 

(d) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein, provided that nothing herein shall relieve the Code Authority 



384 

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 
proportionate payment of the reasonable expenses of maintaining 
the Code Authority and its activities. 

(g) To cooperate with the Administrator in regulating the use 
of any N.R.A. insignia solely by those members of the industry who 
have assented to, and are complying w T ith, this Code. 

(h) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the industry in their relations 
with each other or with other industries and to recommend to the 
Administrator measures for industrial planning, including stabili- 
zation of employment. 

7. The Code Authority may recommend modification of, or amend- 
ments to, this Code, which shall become parts of this Code upon 
approval by the Administrator, after such notice and hearing as he 
shall prescribe. 

8. 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 require that 
such action be suspended to afford an opportunity for investigation 
of the merits of such action and further consideration by such Code 
Authority or agency pending final action, which shall not be effective 
unless the Administrator approves or unless he shall fail to disap- 
prove after thirty days notice to him of intention to proceed with 
such action in its original or modified form. 

9. In addition to information required to be submitted to the 
Code Authority, members of the industry shall furnish to such 
Federal and State agencies as the Administrator may designate, 
such statistical information as the Administrator may deem necessary 
for the purposes recited in Section 3 (a) of the Act, and nothing in 
this Code shall relieve any person of any existing obligation to fur- 
nish reports to Government agencies. 

10. An appeal from any action by the Code Authority affecting 
the rights of any employer or employee in the industry may be taken 
to the Administrator. 

Article VII — Trade Practice Rules 

The following shall constitute unfair competition and a violation 
of this Code : 

1. For any member to sell or offer to sell any product of the indus- 
try at a price below his own cost of production as determined on the 
basis of a cost accounting system approved by the Code Authority 
and subject to approval by the Administrator; provided, however, 
any member may sell at less than his cost to meet the price of a 
competitor. This paragraph shall not apply to any product pro- 
duced as a byproduct in the manufacture of standard granular 
grades. 



385 

2. To give secret rebates, refunds, credits, unearned discounts, 
whether in the form of money or otherwise, or to extend to any pur- 
chasers services or privileges not extended to all purchasers under 
like terms or conditions. 

3. No member of the industry shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influ- 
encing or rewarding the action of any employee, agent or representa- 
tive of another in relation to the business of the employer of such 
employee, the principal of such agent or the represented party, with- 
out the knowledge of such employer, principal or party. This pro- 
vision shall not be construed to prohibit free and general distribution 
of articles commonly used for advertising, except so far as such 
articles are actually used for commercial bribery as hereinabove 
defined. 

4. To make or cause or permit to be made or published any false 
or deceptive statement concerning the grade, quality, quantity, sub- 
stance, character, nature, origin, size or preparation of any product 
of the industry having the tendency to mislead or deceive purchasers 
or to affect injuriously the business of competitors. 

5. To sell or offer to sell any grade of product contrary to screen 
standards which may be established by the Code Authority subject 
to approval of the Administrator. 

6. To make an allowance for sifting in excess of two pounds per 
bag of a minimum shipping weight of 120 pounds and proportion- 
ately less for bags of smaller content. 

7. To allow a rebate for bags returned different from the price 
originally charged or to allow freight on returned bags. 

8. To extend a period of free credit in excess of thirty (30) days; 
provided that a member of the industry may offer credit terms to 
customers buying at intervals during the month, permitting pay- 
ment on or before the fifteenth day of the month subsequent to that 
in which shipment is made, 

9. Every member of the industry shall insert a provision in all 
contracts made by him for operating work in connection with min- 
ing and/or manufacturing Fuller's Earth within the industry, 
whereby the contractor agrees that he or his subcontractor shall be 
subject to the labor provisions of this Code. 

Article YIII — Price Lists 

1. Each member of the industry shall within ten (10) days after 
the effective date of the Code file with the Code Authority and with 
the Administrator, if required, a list of its selling prices and dis- 
counts, if any are allowed, for its various grades, which shall become 
effective on the date of filing thereof. None of the prices or dis- 
counts shown in any list filed by any member of the industry, as 
herein provided, shall be changed, except by filing by such member 
with the Code Authority a new list of his prices and discounts to be 
changed, which shall become effective on the effective date therein 
specified, which date shall be five days after the date on which such 
new list shall have been filed; provided, however, that any member 
may file with the Code Authority a revised list to meet lower prices, 
or higher discounts, or both, of a competitor, which revised list may 



386 

become effective on the same date that the competitor's revised list 
becomes effective. Lists of prices and discounts riled with the Code 
Authority shall be open to inspection by any interested person.* 

Article IX — 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 X — Amendments 

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 Section 10 (b) of the National Industrial Recovery Act, 
from time to time to cancel or modify any order, approval, license, 
rule, or regulation, issued under Title I of said Act, and specifically, 
but without limitation, to the right of the President to cancel or 
modify his approval of this Code or any conditions imposed by him 
upon his approval thereof. 

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

Article XI — Effective Date 

1. This Code shall become effective seven (7) days following its 
approval by the President. 

Approved Code No. 356. 
Registry No. 1013-10. 



See paragraph 2 of order approving this Code. 

O 



Approved Code No. 357 
CODE OF FAIR COMPETITION 

FOR THE 

INDUSTRIAL FURNACE MANUFACTURING 
INDUSTRY 

As Approved on March 23, 1934 



ORDER 



Approving Code of Fair Competition for the Industrial Furnace 
Manufacturing Industry 

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

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

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
W. A. Harriman, 

Division Administrator, 

Washington, D.C., 

March 23, 1934. 

48302° 425-131 34 (387) 



REPORT TO THE PRESIDENT 

The President, 

The White Bouse. 
Sir: This is a report on the Code of Fair Competition for the 
Industrial Furnace Manufacturing Industry,* as revised after a 
Public Hearing held in Washington on the 19th day of January, 
1934, in accordance with the provisions of the National Industrial 
Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employment is limited to 8 hours per day and 40 hours per week 
and 6 days in any 7-day period. To provide for seasonal demands, 
overtime is allowed to the extent of 8 hours per week for 6 weeks in 
any 6 months' period. 

Overtime in excess of 8 hours in any 24-hour period or in excess 
of 40 hours in any 7-day period will be paid for at one and one-half 
times the normal rate. 

Minimum wages of 40 cents per hour are established except that 
a minimum wage of 35 cents per hour shall be paid in Virginia, 
North Carolina, South Carolina, Georgia, Florida, Tennessee, Ala- 
bama, Mississippi, Louisiana, Texas, and Arkansas, and except office 
and clerical employees who may be paid at the rate of $15.00 per 
week and office boys at a rate of $12.00 per week. Females will be 
paid the same rate as males for substantially the same work. 

ECONOMIC EFFECT OF THE CODE 

Before adoption of the reduced hourly schedule in 1933, this 
Industry, comprising approximately 48 companies, employed about 
270 persons. Through adoption of the 40 hour week as provided in 
this Code, employment has increased to about 310 persons or an 
increase of 11%. 

The invested capital of this Industry is about $2,290,000. Sales 
in 1932 totaled approximated $2,240,000, but sales for 1933 are esti- 
mated at $3,250,000 or an increase of 40%. 

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- 
OSS) 



389 

vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor and 
by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 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 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 by me. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
March 23, 1934. 



CODE OF FAIR COMPETITION FOE THE INDUSTRIAL 
FURNACE MANUFACTURING INDUSTRY 

Article I — Purposes 

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

Article II — Definitions 

The following terms are used herein, with the meanings set forth 
below : 

Section 1. " Industry." The Industrial Furnace Manufacturing 
Industry includes the design, manufacture, and sale, and/or instal- 
lation, servicing and repairing by the manufacturer, of Industrial 
Furnaces, Ovens, Accessories and Allied Equipment for Heating, 
Melting, Making, Refining, Heat Treating and/or the processing of 
Metals and other materials by means of heat, excepting all elec- 
trically heated products assembled in a manufacturer's plant and 
shipped as complete units by such manufacturer. 

Section 2. " Employee." Anyone engaged in the Industry in any 
capacity, receiving compensation for his services, irrespective of the 
nature or method of payment of such compensation. 

Section 3. " Employer." Anyone by whom any such employee 
is compensated or employed. 

Section 4. " 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. 

Section 5. "Association." The Industrial Furnace Manufacturers 
Association. 

Section 6. " President ", "Act ", and "Administrator." Respec- 
tively the President of the United States of America, Title I of the 
National Industrial Recovery Act, and the Administrator for In- 
dustrial Recovery. 

Article III — Hours 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any one (1) week or eight (8) hours in any 
twenty-four (24) hour period, or six (6) days in any seven (7) days, 
except as hereinafter provided. 

Section 2. The maximum hours fixed in Section 1 shall not apply 
during any period in which a concentrated demand on the industry 
shall place an unusual and temporary burden upon its production 

(390) 



391 

facilities. Such special period shall not exceed six (6) weeks in any 
six (6) months, during which period overtime shall not exceed eight 
(8) hours in any one week; provided, however, that in any such 
special case at least one and one-half (l 1 /^) times the employee's nor- 
mal rate shall be paid for all hours worked in excess of eight (8) 
hours per day or forty (40) hours per week. All such special cases 
of overtime shall be reported to the Code Authority. 

Section 3. There shall be a tolerance of ten (10) percent for all 
employees engaged as stock or shipping clerks; provided that time 
and one-half shall be paid for all hours worked in excess of eight 
(8) hours per day or forty (40) hours per week. 

Section 4. The limitations as to hours of labor shall not apply 
to persons in a managerial, executive, technical, research, or super- 
visory capacity who receive thirty-five ($35.00) dollars or more per 
week, or to outside salesmen. 

Section 5. The limitations as to hours of work shall not apply to 
any employee on emergency maintenance or repair work involving 
breakdowns or protection of life or property, but in any such special 
case, at least one and one-half (1%) times the normal rate shall be 
paid for hours worked in excess of forty (40) hours per week or 
eight (8) hours per day. All such cases of emergency overtime shall 
be reported to the Code Authority. 

Section 6. Office and clerical employees shall not be permitted to 
work in excess of forty (40) hours per week or eight (8) hours per 
day ; provided, however, that any such employee may be permitted to 
work not more than forty -eight (48} hours per week in not more than 
six (G) weeks in any six (6) months' period and that one and one-half 
(1%) times the regular hourly rate be paid for all time worked in 
excess of forty (40) hours per week or eight (8) hours per day. 

Section 7. Watchmen may be permitted to work not more than 
fifty-six (56) hours in any one week; provided that they have one 
day of rest in seven (7) days. 

Section 8. No employee shall knowingly be permitted to work 
for a total number of hours in excess of the number of hours pre- 
scribed for each week and day, whether employed by one or more 
employers. 

Article IV — Wages 

Section 1. The minimum hourly wage that shall be paid any 
employee shall be not less than at the rate of forty (40) cents 
per hour, except as hereinafter provided. 

(a) Employees in the following States shall be paid not less than 
at the rate of thirty-five (35) cents per hour: Virginia, North Caro- 
lina, South Carolina, Georgia, Florida, Tennessee, Alabama, Mis- 
sissippi, Louisiana, Texas and Arkansas. 

Section 2. These minimum wage rates shall apply to common 
labor or unskilled labor. Other classes of labor shall be compen- 
sated at rates above these minimum rates. 

Section 3. All office employees shall be paid at the rate of not 
less than fifteen ($15.00) dollars per week, except office boys and 
girls, who shall be paid at a rate of not less than eighty (80) 
percent of this rate; provided that the number of such office boys 
and girls thus paid shall be limited to five (5) percent of the total 



392 

number of office employees, Avith a minimum of two (2) such 
employees for each member of the industry. 

Section 4. A person whose earning capacity is limited because 
of age or physical or mental handicap may be employed on light 
work at a wage below the minimum established by this Code if the 
employer obtains from the State Authority designated by the 
United States Department of Labor a certificate authorizing his 
employment at such wages and for such hours as shall be stated 
in the certificate. Such Authority shall be guided by the instruc- 
tions of the United States Department of Labor in issuing certifi- 
cates to such persons. Each employer shall file with the Code 
Authority a list of all such persons employed by him. 

Section 5. This Article establishes a minimum compensation 
which shall apply, irrespective of whether an employee is actually 
compensated on a time rate, piece-work, or other basis. 

Section 6. Equitable adjustments in the rates of pay above the 
minimum shall be made on the effective date of this Code by every 
employer who has not made such adjustments under the National 
Industrial Kecovery Act. Withing thirty (30) days after the effec- 
tive date of this Code, all such adjustments made under the Act 
shall be reported to the Code Authority and to the Administrator 
on request. In no case shall hourly or piece rates be reduced. 

Section 7. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industry, nor anyone under eighteen (18) years of 
age at operations or occupations hazardous in nature or dangerous 
to health. In any State an employer shall be deemed to have com- 
plied with this provision if he shall have on file a certificate or per- 
mit duly issued by the authority in such State empowered to issue 
employment or age certificates or permits, showing that the employee 
is of the required age. Each member of the Industry shall submit 
to the Code Authority within sixty (60) days after the effective date 
of the Code, a list of such hazardous or dangerous occupations. 

Section 2. Employees shall have the right to organize and bar- 
gain collectively through representatives of their own choosing, and 
shall be free from the interference, restraint, or coercion of employ- 
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. 

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 organi- 
zation 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. 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, 



393 

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

Section 6. Employers shall not reclassify employees or duties of 
occupations performed by employees or engage in any other subter- 
fuge for the purpose of defeating the purposes or provisions of the 
Act or of this Code. 

Section 7. Every employer shall make reasonable provisions for 
the safety and health of his employees at the places and during the 
hours of their employment. Standards for safety and health shall 
be submitted by the Code Authority to the Administrator for ap- 
proval within six (6) months after the effective date of this Code. 

Section 8. Within ten (10) days of the effective date, each em- 
ployer shall post and thereafter maintain, in conspicuous places ac- 
cessible to employees full copies of this Code and any amendments 
or modifications which may later be approved. 

Article VI — Administration 

To further effectuate the policies of the Act, a Code Authority is 
hereby constituted to co-operate with the Administrator in the ad- 
ministration of this Code. 

Section 1. Organization and Constitution of Code Authority. 

(a) The Code Authority shall consist of five (5) individuals, to be 
selected as hereinafter set forth. The Administrator, at his discre- 
tion, may appoint one (1) to three (3) additional members (with- 
out vote) to represent the Administrator or such groups or interests 
as may be agreed upon. 

Four (4) members of the Code Authority shall be elected by the 
members of the Association and one (1) member shall be elected by 
members of the Industry who are not members of the Association 
and who agree to share in the expense of the administration of this 
Code; said elections to be conducted in any fair manner approved 
by the Administrator. In case the non-members of the Association 
fail to elect a representative to serve on the Code Authority, its mem- 
bership will be automatically reduced to four individuals. 

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

(1) Impose no inequitable restrictions on membership, and 

(2) Submit to the Administrator true copies of its articles of as- 
sociation, 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. 

(3) In order that the Code Authority shall at all times be truly 
representative of the Industry and in other respects comply with 
the provisions of the Act, the Administrator may provide such hear- 
ings as he may deem proper ; and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other re- 
spects comply with the provisions of the Act, may require an ap- 
propriate modification in the method of selection of the Code 
Authority. 

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



394 

(a) To cooperate with the Administrator in making investigations 
as to the functioning and observance of any provisions of this Code, 
at its own instance or on complaint by any party affected, under 
such rules and regulations as may be prescribed by the Adminis- 
trator. 

(b) To prescribe uniform proposal forms, subject to the approval 
of the Administrator. 

(c) To consider proposals for amendments or modifications and 
make recommendations thereon to the Administrator, which amend- 
ments or modifications will become effective as a part of this Code 
upon approval by the Administrator, after such notice and hearing 
as he may specify. 

(d) To adopt by-laws and rules and regulations for its procedure 
and for the administration of the Code. 

(e) Obtain from members of the Industry such information and 
reports (sworn or unsworn as the Code Authority may specify) 
as are required for the administration of this Code. No individual 
information, statistics or reports shall be disclosed to any other 
member of the Industry or any other party except to such govern- 
mental agencies as may be designated by the Admini