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

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NATIONAL RECOVERY ADMINISTRATION

HUGH S. JOHNSON, Administrator for Industrial Recovery

CODES OF FAIR COMPETITION

Nos. 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 *

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)

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

3-21-34

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

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>.

4597O0 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 22y20
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.

(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

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

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.

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

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

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.

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)

(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)

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

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.

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
wTorked 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.

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-

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.

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.

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.

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:

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)

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)

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}7ment 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.

(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}7ees 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

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;

(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.

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

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-

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.

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.

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 (0r( ) 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.

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)

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)

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.

There is established a system of open price listing based upon ar
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)

(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

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.

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

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.

(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-

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

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

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.

(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

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.

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 :

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)

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

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)

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.

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

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

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

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}Ts' 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 proATide 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.

(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.

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

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 anyj

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.

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 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.

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)

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)

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}rees 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 :

(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.

(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

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.

(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.

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.

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.

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 :

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 (37y2) 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)

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.

(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 (7y2) 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)

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 (37y2) 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

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.

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

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 agenc3T 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

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

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.

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.

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:

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.

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.

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:

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 (12y2) 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.

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}Tee 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.

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.

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 :

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}Ted 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.

(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.

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:

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 amTone 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.

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 emplojrer 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.

(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.

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.

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:

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.

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.

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.

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 :

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.

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

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.

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 :

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:

(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}Tone
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}Tment 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, wTages, 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.

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:

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:

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 industry7 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.

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:

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}7ees; 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 wTill 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}Ts 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.

Approved Code No. 346
CODE OF FAIR COMPETITION

FOR THE

BOWLING AND BILLIARD OPERATING TRADE
As Approved on March 17, 1934

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:

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 city7 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.

(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.

Approved Code No. 347
CODE OF FAIR COMPETITION

FOR THE

MACHINERY AND ALLIED PRODUCTS INDUSTRY
As Approved on March 17, 1934

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 87y2 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.

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.

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.

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-twTo dollars and fifty cents per
week in road companies, provided that w7here 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 Authority7 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}rer, 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
(iy2) 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;

(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.

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 (17y2%) 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 (9r7 ) 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 (271/.) 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.

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 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&g9^ 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.

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:

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:

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}rees 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 40c7 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
aPply>. 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

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.

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 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 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
wrhich 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

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-

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.

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:

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.

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.

47S8G0 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.

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 *wTork
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.

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.

(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}Tee, 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.

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 ux\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

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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.

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 wTith, this Code.

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.

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 :

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:

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 (l1/^) 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 Administrator.

Section 3. Members of the Industry shall be entitled to participate
in and share the benefits of the activities of the Code Authority
and to participate in the selection of the members thereof, by as-
senting to and complying with the requirements of this Code and
sustaining their reasonable share of the expense of its administration.

(a) The reasonable share of the expenses of administration shall
be determined by the Code Authority, subject to review by the Ad-
ministrator, on the basis of volume of business and/or such other
factors as may be deemed equitable to be taken into consideration.

Section 4. In addition to the information required to be sub-
mitted to the Code Authority and the Administrator, 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, provided that nothing herein shall relieve
anyone of any existing obligation to furnish reports to government
agencies.

Section 5. If the Administrator shall determine that any action
of the Code Authority or any agency thereof may be unfair or un-
just 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 (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
and are prohibited :

Section 1. Misrepresentation or False or Misleading Advertis-
ing.— The making or causing or knowingly permitting to be made or
published any false, materially inaccurate or deceptive statement by

395

way of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the Industry, or the credit terms,
values, policies, or services of any member of the Industry, or other-
wise, having the tendency or capacity to mislead or deceive cus-
tomers or prospective customers.

Section 2. Commercial Bribery. — The giving, permitting to be
given, or directly offering to give, anything of value for the pur-
pose of influencing or rewarding the action of any employee, agent,
or representative of another in relation to the business of the em-
ployer 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
commercial bribery as hereinabove defined.

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

Section 4. Defoliation. — The defamation of competitors by
falsely imputing to them dishonorable conduct, inability to perform
contracts, questionable credit standing, or by other false representa-
tions or by the false disparagement of the grade or quality of their
goods.

Section 5. Threats of Litigation. — The publishing or circulating
of threats of suits for infringement of patents or trade marks or
of any other legal proceedings not in good faith, with the tendency
or effect of harassing competitors or intimidating their customers.

Section 6. Selling Below Cost. — Selling or offering to sell prod-
ucts of the Industry at prices below his individual cost, except :

(a) To meet existing price competition of another whose costs
under the Code are lower, provided that competition is not instigated
directly or indirectly by the party desiring to meet such competition.
Cost of production shall be determined by a method of accounting
to be adopted by the Code Authority, subject to the approval of the
Administrator.

(b) Dropped lines, distress merchandise, seconds, or inventories,
which must be converted into cash to meet emergency needs, may be
disposed of by any member at any price and on any terms, and con-
ditions, provided, such member has at least ten days prior to the
date of such disposal filed with the Code Authority a notice in writ-
ing setting forth the reasons and necessity therefor and a list of such
items. No product of the industry which is to be built to order sub-
sequent to its sale shall be classified as coming under the foregoing
emergency provision.

Section 7. Furnishing Drawings. — Furnishing the customer with
drawings, designs or equivalent confidential engineering information,
except that :

(a) Sales sketches, photographs, or equivalent material to illus-
trate the equipment offered may be furnished with quotations.

396

(b) Maintenance information furnished to purchasers of the prod-
ucts of the Industry may include illustrative sketches, phantom
drawings or the reasonable equivalent thereof, to permit identifica-
tion and installation of replacement parts, and to provide informa-
tion for the operation of the equipment.

(c) Drawings and/or engineering specifications may be sold as
such, providing the sale is made under a separate and individual
contract committing the seller to accept the price named without
reference to, or modification by, the sale of any other product or
service.

Article VIII — Modification

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

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

Article IX — Monopolies

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

Article X — Price Increase

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

Article XI — Effective Date of This Code

This Code shall become effective on the eleventh (11th) day after
its approval by the President.

Approved Code No. 357.
Registry No. 1103-09.

Approved Code No. 358
CODE OF FAIR COMPETITION

FOR THE

CYLINDER MOULD AND DANDY ROLL INDUSTRY

As Approved on March 23, 1934

ORDER

Approving Code of Fair Competition for the Cylinder Mould
and Dandy Roll 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 Cylinder Mould and Dandy Roll 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 :

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended:
A. R. Glancy,

Division Administrator.

Washington, D. C,

March 23, 1934.

48303° 425-132 34 (397)

REPORT TO THE PRESIDENT

The President,

The White House.
Sir: This is a report on the Code of Fair Competition for the
Cylinder Mould and Dandy Roll Industry as revised after a Public
Hearing conducted in Washington on the 26th day of February,
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 to 6 days in any 7 day period, with the exception that in peak
periods a tolerance of 8 hours per week in any 6 weeks during any
6 months' period is permitted, and that heating firemen, truckmen,
and shipping clerks may work 44 hours per week.

A minimum wage of 40 cents per hour is established except for
office employees who are to be paid at the rate of not less than $15.00
per week.

Female and male employees doing substantially the same work
shall be paid at the same rate.

Overtime is to be paid at the rate of one and one-half the regular
rate for all hours worked in excess of 8 hours per day and 40 hours
per week.

ECONOMIC EFFECT OF THE CODE

The Cylinder Mould and Dandy Roll Industry is a small, highly
specialized unit of the Paper Making Industry. The Industry
manufactures and repairs cylinder moulds and dandy rolls, plain
or watermarked, and is dependent upon the activities of the Paper
Industry. It employs normally about 150 employees, mostly highly
skilled, and has an annual production capacity of about $600,000.

Under the provisions of the code the payrolls will preserve the
ratio of increase that was made under the President's Re-employ-
ment Agreement, which was an increase of 64% from the 1932
level. Under the 40 hour week, as established by the code, it is
estimated that the number of employees will be increased 28%.

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

(398)

399

commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of
industry for the purpose of cooperative action among the trade
groups, by inducing and maintaining united action of labor and
management under adequate governmental sanctions and supervi-
sion, by eliminating unfair competitive practices, by promoting the
fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor and by otherwise rehabilitating industry.

(b) Said Industry normally employs not more than 50,000 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
restrictions on admission to membership therein.

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

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

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

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

Hugh S. Johnson,

Administrator,
March 23, 1934.

CODE OF FAIR COMPETITION FOE THE CYLINDER
MOULD AND DANDY ROLL 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 Cylinder Mould and Dandy Roll Indus-
try, and shall be the standard of fair competition for this Industry,
and shall be binding upon every member thereof.

Article II — Definitions

The following terms are used herein with the meanings set forth
below :

Section 1. The term " Cylinder Mould and Dandy Roll Industry",
as used herein, or the " Industry " means the manufacturing, repair-
ing, and recovering of Cylinder Moulds and/or Dandy Rolls (plain
or watermarked) for sale and/or the sale of any of these products
or services.

Section 2. The term " employee ", as used herein means anyone
engaged in the Industry in any capacity, receiving compensation
for his services, irrespective of the nature or method of payment
of such compensation.

Section 3. The term " employer ", as used herein, means anyone
by whom any such employee is compensated or employed.

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

Section 5. The term "Association ", as used herein, means the
Association of Cylinder Mould and/or Dandy Roll Makers,
Repairers, and Recoverers.

Section 6. The term " effective date ", as used herein, means the
second Monday after approval of this Code by the President.

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, excluding accounting, clerical and office
employees, will be employed in excess o,f forty (40) hours in any
one (1) week or eight (8) hours in any twenty-four (24) hour pe-
riod; except, that during any six (6) weeks in any six (6) months'
period, employees may be employed not more than forty-eight (48)
hours per week, provided that one and one-half (1%) times the
normal rate of pay shall be paid for hours worked in excess of

(400)

401

eight (8) hours per day and forty (40) hours per week. The fore-
going limitations shall not apply to:

(a) Those engaged in executive, managerial and supervisory
capacities (except foremen) who regularly receive thirty-five ($35.00)
dollars or more per week, or outside salesmen.

(b) Heating firemen, truckmen, shipping clerks and delivery em-
ployees may be permitted to work not in excess of forty-four (44)
hours in any one (1) week, provided that one and one-half (IV2)
times the normal rate of pay shall be paid for hours worked in ex-
cess of eight (8) hours per day and forty (40) hours per week.

(c) Watchmen may be employed not more than fifty-six (56)
hours in any one (1) week, nor more than six (6) days in any one
(1) week.

(d) Employees on emergency maintenance or emergency repair
work involving breakdown or protection of life or property shall
be permitted exemption from this section; but in any such special
case at least one and one-half (1%) times the regular rate shall be
paid for hours worked in excess of eight (8) hours per day and forty
(40) hours per week.

Section 2. No accounting, clerical or office employee shall be em-
ployed in excess of forty (40) hours per week or nine (9) hours
per day. Eight (8) hours shall constitute a normal working day.

Section 3. No employer shall knowingly permit any employee
to work for any time which, when totalled with that already per-
formed for another employer or employers in any Industry exceeds
the maximum permitted herein.

Section 4. Employers performing manual work or who are en-
gaged in mechanical operations shall not exceed the prescribed maxi-
mum number of hours.

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. No employee shall be paid less than at the rate of
forty (40) cents per hour, except

(a) Office, clerical, accounting, sales employees, compensated on a
weekly basis of not less than at the rate of fifteen ($15.00) dollars
per week.

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

Section 3. Female employees performing substantially the same
work or performing the same duties as male employees shall receive
the same rates of pay as male employees.

Section 4. No employer, whether acting through agents or other-
wise, shall accept rebates on wages or give anything of value or
extend favors to any person for the purpose of influencing rates
of pay or the working conditions of his employees.

Section 5. 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 a Code, if the employer obtains from the state authority, desig-

402

nated 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; provided, however, that such
employees shall not exceed five (5) percent of the total number of
employees, but each employer shall be entitled to at least one such
employee.

Section 6. Equitable adjustment of all wages shall be made by
every employer who has not heretofore made such adjustments
under the National Industrial Recovery Act. Within thirty (30)
days after the effective date of this Code all such adjustments made
under the Act shall be reported to the Code Authority and to the
Administrator. In no case shall hourly or piece rates be reduced.

Section 7. Each employer shall make payment of all wages due
in lawful currency or by negotiable check payable on demand.
Wages shall be exempt from any deductions, other than those vol-
untarily agreed upon.

Article V — General Labor Provisions

Section 1. No person under sixteen (16) years of age shall be
employed in this Industry and no one under eighteen (18) years
of age shall be employed in operations or occupations hazardous
in nature or detrimental to health.

The Code Authority shall submit to the Administrator before
June 1, 1934, a list of such operations or occupations. In any State
an employer shall be deemed to have complied with this provision
as to age if he shall have on file a certificate or permit, duly 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. In compliance with Section 7 (a) of the Act, it is
provided :

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

(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 provision in this Code shall supersede any State
or Federal law which imposes on employers more stringent re-
quirements as to age of employees, wages, hours of work, or as to

403

safety, health, sanitary or general working conditions or insur-
ance or fire protection, than are imposed by this Code.

Section 4. No employer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge for the
purpose of defeating the purposes or provisions of the Act or of this
Code.

Section 5. Each employer shall keep conspicuously posted at all
times in each shop, establishment or separate unit or enterprise com-
plete copies of the labor provisions of this Code to the extent neces-
sary to make them freely accessible to all employees.

Section 6. Each employer shall provide for the safety and health
of his employees at the place and during the hours of their employ-
ment. Standards for safety and health shall be submitted by the
Code Authority to the Administrator within three (3) months after
the effective date of this Code.

Section 7. No member of the Industry shall directly or indirectly
sublet to any employee, the labor services required in the execution of
any contract of such member. This should not be construed to cover
work commonly known as piece-work.

Article VI — Administration

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

Section 1. Organization of the Code Authority.

(a) A Code Authority shall consist of five (5) individuals, or
such other number as may be approved from time to time by the
Administrator, to be selected as hereinafter set forth. The Adminis-
trator, in his discretion, may appoint not more than three (3) addi-
tional members (without vote) to represent the administration.

(b) Five (5) individuals to be chosen by the Industry shall be
elected at a meeting of the entire Industry, such meeting to be called
by the Association within five (5) days after the approval of this
Code. Notice of such meeting shall be sent by the Association by
registered mail at least ten (10) days in advance of the election of
all members of the Industry who are registered with the Association,
or whose identity and address can be ascertained through diligent
inquiry. Each member of the Industry who agrees to sustain his
reasonable share of the expense of administering this Code shall be
entitled to vote, and shall have one (1) vote, said vote to be cast
in person or by proxy. A majority vote of the members participat-
ing in said election shall be necessary to elect.

(c) Individuals so elected shall serve for one (1) year, at the end
of which time there shall be another election conducted as herein-
before provided. Individuals on the Code Authority shall be eligible
for reelection. Vacancies in the Code Authority occurring during
the year shall be filled by the vote of the remaining members.

Section 2. 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 sustain-
ing their reasonable share of the expenses of its administration.
Such reasonable share of the expense of administration shall be deter-

404

mined 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 3. The said Association shall: (1) Impose no inequitable
restrictions on membership and (2) Submit to the Administrator
true copies of its Constitution and By-Laws, and any amendments
thereto, together with such other information as to membership, or-
ganization and activities as the Administrator may deem necessary
to effectuate the purposes of the Act.

Section 4. In order that the Code Authority shall at all times be
truly representative of the 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.

Section 5. Powers and Duties. The Code Authority shall have
the following duties and powers to the extent permitted by the Act:

(a) To adopt By-Laws and Rules and Regulations for its pro-
cedure and for the administration of the Code.

(b) To make such reports as the Administrator may require and
collect from members of the Industry periodically or as often as it
may direct sworn or unsworn reports on wages, hours of labor, con-
ditions of employment, number of employees, and other matters
pertinent to the purpose of this Code or of the Act.

In addition to information required to be submitted by the Code
Authority there shall be furnished to government agencies such
statistical information as the Administrator may deem necessary for
the purposes recited in Section 3 (a) of the Act, but nothing herein
contained shall relieve anyone of any existing obligation to furnish
reports to government agencies.

(c) To investigate any complaints of violations of this Code and
to seek adjustments thereof, under such rules and regulations as may
be prescribed by the Administrator.

(d) To recommend to the Administrator further 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.

(e) To appoint committees to carry out its duties if deemed neces-
sary, such as the following: Administration, Compliance, Finance,
Trade Relations, Subdivisional, and such other committees as may
be required.

(f) To study the effect of the provisions of this Code upon the
Industry and consider proposals for amendments or modifications
and make recommendations thereon from time to time to the Admin-
istrator, which amendments or modifications shall become effective as
part of the Code upon approval by the Administrator, after such
notice and hearing as he may specify.

(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

405

trade practices to govern the relationships between production and
distribution employers under this code and under such others to the
end that such fair trade practices may be proposed to the Admin-
istrator as amendments to this code and such other codes.

Section 6. The Code Authority may appoint a secretary and any
and all information requested by the Code Authority shall be filed
with the secretary and deemed confidential, and the reports of indi-
vidual members shall not be divulged to any member of the Industry
except in compiled summaries, but shall be available to the Admin-
istrator upon request.

Section 7. If the Administrator shall determine 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 (30) days' notice to him of the intention to proceed
with such action in its original or modified form.

Article VII — Prices

Section 1. In the conduct of its business, each member of the
industry shall use a method of cost accounting which conforms to
the principles of the standard method of cost accounting to be formu-
lated or adopted by the Code Authority and approved by the Ad-
ministrator. Variations from or modifications of the adopted
method may be required to fit the individual needs of particular
members, but the expression standard method is to imply in its
narrowest sense: (a) a definition of accounting terms, in order that
all members of the Industry may include the same elements in
various stages of cost; and (b) a model or standard to provide a
gauge of the requirements for an adequate procedure. Full details
concerning such method shall be made available to all members.

Section 2. Within seven (7) days after the effective date of this
Code each member of the Industry shall publish his prices, terms
and conditions of sale on all products of the Industry. Coincident
with such publication, each member of the Industry shall file with
the Code Authority a complete schedule of such prices and terms
with sufficient copies for all members of the Industry, and the Code
Authority shall immediately distribute to all members of the In-
dustry a complete schedule of such prices, terms and conditions
of sale.

Section 3. In the event of any change by any member of the
Industry in any price, terms, or condition of sale, he shall file full
and complete copies of every change with the Code Authority. All
such changes shall become effective immediately upon such filing
unless and until the Code Authority shall designate periods within
which any such changes shall become effective, subject to the ap-
proval of the Administrator, but in no case shall any such period
exceed seven (7) days after the date of the filing of the change.
Copies of all changes filed shall be immediately distributed by the
Code Authority to the members of the Industry. Information on

406

such price changes shall be available to the trade to which it is ap-
plicable, on the effective date of such change and each member shall
coincidently file such information in the office designated by the
Code Authority for immediate distribution by the Code Authority
to the members of the Industry.

Section 4. In the event the Code Authority shall make any change,
as authorized in Article VII, Section 3, in the effective dates of filed
prices and any member of the Industry shall not receive sufficient
notice of the filing by any other member of any change in prices or
terms and conditions of sale as will enable the member first men-
tioned to meet the said change on the effective date thereof, such
member may file with the Code Authority such changes in his prices,
terms and conditions of sale as may be required to meet the change
filed by the other member. Changes so filed shall become effective
on the same date as the effective date of the change of the mem-
ber first filing as aforesaid, or if such change has already become
effective, then the changes subsequently filed shall become effective
immediately.

Section 5. No member of the Industry shall sell, pay a rebate, or
allow a deduction at any time to any person except in accordance
with his prices, terms, and conditions of sale then in effect and pub-
lished in the manner described herein. Each member of the Industry
shall have the right, individually, to publish new prices, terms, and
conditions of sale, from time to time, as herein provided.

Article VIII — Trade Practices

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

Section 1. False Marking or Branding : False marking or brand-
ing of any product of the Industry which has the tendency to 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.

Section 2. Misrepresentation or False or Misleading Advertising :
Making, causing, or knowingly permitting to be made or published
any false, materially inaccurate, or deceptive statement by way of
advertisement or otherwise, whether concerning the grade, quality,
quantity, substance, character, nature, origin, size, finish, or prepa-
ration of any product of the Industry, or the credit terms, values,
policies, or services of any member of the Industry, or otherwise,
having the tendency or capacity to mislead or deceive customers or
prospective customers.

Section 3. Commercial Bribery: 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 rep-
resentative 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; pro-
vided, however, that this shall not be construed to prohibit free and
general distribution of articles commonly used for advertising, except
so far as such articles are actually used for commercial bribery, as
hereinabove defined.

407

Section 4. Interference with Contractual Relations: Maliciously-
inducing or attempting to induce the breach of an existing oral or
written contract between a competitor and his customer or source
of supply, or interfering with or obstructing the performance of
any such contractual duties or services.

Section 5. Secret Rebates: Secretly paying or allowing rebates,
refunds, commissions, credits, or unearned discounts, whether in the
form of money or otherwise, or the secret extension to certain
purchasers of special services or privileges not extended to all
purchasers on like terms and conditions.

Section 6. Giving of Prizes, Premiums, Gifts, or Services : Giv-
ing or offering to give prizes, premiums, gifts, or services in connec-
tion with the sale of products of the Industry or as an inducement
thereto, by any scheme which involves lottery, misrepresentation,
or fraud.

Section 7. Defamation : Defaming competitors by falsely im-
puting to them dishonorable conduct, inability to perform contracts
questionable credit standing, or by other false representations or
by the false disparagement of the grade or quality of their goods.

Section 8. Threats of Litigation : Publishing or circulating
threats of suits for infringement of patents or trade marks or of
any other legal proceedings not in good faith, with the tendency or
effect of harassing competitors or intimidating their customers.

Section 9. Espionage of Competitors : Securing confidential in-
formation concerning the business of a competitor by a false or
misleading statement or representation, by a false impersonation
of one in authority, by bribery, or by any other unfair method.

Section 10. Selling or offering to sell at variance from filed
price lists : Selling or offering to sell at prices different from prices
filed with the Code Authority as provided in Article VII, Section 3.

Section 11. Selling Below Cost: No member of the Industry
shall sell products at less than the cost to the seller as determined
on the basis of the principles outlined in the standard cost account-
ing method stipulated in Article VII, Section 1, above, with such
restrictions or adjustments as are indicated in the Cost Formula
to be prescribed by the Code Authority and approved by the
Administrator; provided, however, that sales below cost shall be
permitted to meet the lower price of a competitor whose price does
not violate the provisions of the Code, for products of equivalent
type, quality, and/or performance.

Section 12. Guarantees against Price Changes : Making or giving,
or offering to make or give guarantees or protection in any form
against changes in prices beyond a period of fifteen (15) days.

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 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.

408

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

Article X — Monopolies

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

Article XI — Price Increase

Whereas the policy of the Act to increase real purchasing power
will be made impossible of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases hould 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 second Monday after its
approval.

Approved Code No. 358.
Registry No. 1399-44.

Approved Code No. 359
CODE OF FAIR COMPETITION

FOR THE

PREFORMED PLASTIC PRODUCTS INDUSTRY

As Approved on March 23, 1934

ORDER

Approving Code of Fair Competition for the Preformed Plastio

Products 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 Preformed Plastic Products Industry,
and hearings having been duly held thereon and the annexed report
of 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 the authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act ; and do hereby order that said Code
of Fair Competition be and it is hereby approved; provided, how-
ever, that the provisions of Article VII, Section 1, insofar as they
prescribe a waiting period between the filing with the Code Author-
ity and the effective date of revised price lists, 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 of
this Code or after the completion of a study of open price associa-
tions now being conducted by the National Recovery Administration.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
A. R. Glancy,

Division A dministrator.

Washington, D.C.,

March 23, 1934.

48299° 425-133—34 (409)

REPORT TO THE PRESIDENT

The President,

The White House.
Sir: This is a report on the Code of Fair Competition for the
Preformed Plastic Products Industry, a hearing on which was con-
ducted in Washington on the thirteenth of February, 1934, in accord-
ance with the provisions of the National Industrial Recovery Act.

PROVISIONS OF THE CODE AS TO WAGES AND HOURS

The Code limits the work week to forty (40) hours and to six (6)
days, and the day to eight (8) hours. Exceptions are allowed tor
executives and their secretaries receiving thirty-five ($35.00) dol-
lars or more per week, salesmen and watchmen. The last are
limited to fifty-six (56) hours. Further exceptions are provided for
emergency crews who receive time and one-third for overtime, and
for seasonal peaks of production the limit is lifted to an average of
forty (40) hours for six (6) weeks, with time and one-half for time
in excess of forty (40) hours per week.

The Code provides a minimum rate of pay of forty (40^) cents
per hour for common labor, fourteen ($14.00) dollars to fifteen
($15.00) dollars per week for office employees (depending on the
size of the community) and for equitable adjustments of wages
above the minimum.

The Code prohibits employment of persons below sixteen (16)
years of age, or below eighteen (18) years in manufacturing opera-
tions. Provisions are to be made for the safety and health of the
employees and a report submitted thereon.

ECONOMIC EFFECTS OF THE CODE

This is a small industry, employing in 1933, 219 workers as com-
pared with 395 in 1929. Their principal product, asphalt expan-
sion joints for concrete roads, depends for its sale on the volume of
construction.

With increased purchasing power released through the general
adoption of other codes and various construction programs in prog-
ress, stimulation in the activity of industries furnishing the demand
for products of this industry will automatically act to increase em-
ployment here. The forty (40) hour provision is in line with pro-
visions in other capital goods codes and represents a thirty (30%)
percent reduction from the average hours of 1930.

Approximately sixty-five (65%) percent of the factory workers
will be benefitted by the forty (40#) cent minimum wage rate.

The Industry has been stabilized by agreements between the pat-
ent holder and his licensees. In anticipation of the expiration of

(410)

411

these agreements the larger companies are commencing a price war
to the great damage of their smaller competitors, and it is hoped
that the prompt approval of this Code will .serve to arrest this de-
structive competition and preserve the industry.

findings

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

I find that :

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

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

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

(d) The Code is not designed to and will not permit 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, provided
that certain provisions relating to price publication are stayed as
stated in the order.
Respectfully,

Hugh S. Johnson,

A dministrator.
March 23, 1934.

CODE OF FAIK COMPETITION FOR THE PREFORMED
PLASTIC PRODUCTS INDUSTRY

Article I — Purposes

To effectuate the policies of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Code of
Fair Competition for the Preformed Plastic Products Industry, and
the provisions of this Code shall be the Standard of Fair Competi-
tion for such Industry and shall be binding upon every member
thereof.

Article II — Definitions

Section 1. The term " Products " means preformed expansion
joints, bituminous expansion joints, rubber expansion joints, fibrous
expansion joints, either saturated or unsaturated, cork expansion
joints, as used in concrete and masonry construction, asphalt plank
one-half inch or more in thickness, asphalt rail filler, asphalt rail
cushion, asphalt cable trunking, rubber manhole cushions, asphalt
or rubber sewer pipe belts, asphalt raggle blocks, asphalt cant strips,
miscellaneous asphalt premoulded and/or preformed specialties used
in construction projects.

Section 2. The term " Industry", as used herein, includes the busi-
ness of manufacturing, and selling by manufacturers and/or selling
through agencies controlled by said manufacturers, the Products,
and such branches of subdivisions thereof as may from time to time
be included under the provisions of this Code, except that, in the
case of cork and rubber expansion joints, those portions of the man-
ufacturing operations which come under the Cork or Rubber Codes
are excluded.

Section 3. The term " Member of the Industry " includes anyone
engaged in the Industry as above defined, either as an employer or
on his own behalf.

Section 4. The term "Affiliate " means a corporation of which a
majority of the outstanding voting capital stock is owned by a mem-
ber of the Industry.

Section 5. The term " Employee ", as used herein, includes any-
one engaged in the Industry in any capacity receiving compensa-
tion for his services, irrespective of the nature or method of pay-
ment of such compensation, except a member of the Industry.

Section 6. The term " Employer ", as used herein, includes any-
one by whom any such employee is compensated or employed.

Section 7. The terms " President ", "Act ", and "Administrator ",
as used herein, shall mean, respectively, the President of the United
States, Title I of the National Industrial Recovery Act, and the
Administrator for Industrial Recovery.

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

(412)

413
Article III — Hours

Section 1. No employee shall be permitted to work in excess of
forty (40) hours in any seven (7) day period, or eight (8) hours
in any twenty-four (24) hour period, nor more than six (6) days
in any seven (7) day period, except that such hourly and daily
limitations shall not apply to :

(a) Employees regularly employed in an executive or supervisory
capacity, or chemists engaged in testing and research, or personal
secretaries of executives receiving in no week in which they are em-
ployed less than Thirty-five Dollars ($35.00) per week. (This ex-
ception, however, shall not apply to foremen regularly engaged in
manual labor.)

(b) Outside salesmen.

(c) Employees on emergency maintenance or emergency repair
work involving breakdowns or the protection of life or property,
but in any such special case at least one and one-third (1%) times
the normal rate shall be paid for hours worked in excess of the
maximum number of hours herein provided.

(d) Periods of seasonal requirements during which employees
may be permitted to work in excess of forty (40) hours in any seven
(7) day period or eight (8) hours in any twenty-four (24) hour
period provided that during any six (6) weeks' period the number
of hours of employment shall average not more than forty (40)
hours for any seven (7) day period, nor more than six (6) days in
any seven (7) day period; and provided, further, that in any such
cases employees shall be paid not less than one and one-half (1%)
times the normal rate for all hours worked in excess of forty (40)
hours for any seven (7) day period, or eight (8) hours per day.

(e) Employees engaged as watchmen who may be permitted to
work not in excess of fifty-six (56) hours in any seven (7) day
period.

Section 2. No employer shall knowingly permit any employee to
work any time which, when totaled with that already performed with
another employer or employers, exceeds the maximum specified in
this Article III.

Article IV — Wages

Section 1. No employee shall be paid at less than the rate of
forty cents (40^) per hour.

This minimum wage shall apply to common labor or other totally
unskilled labor. Other classes of labor, including all piece-workers,
shall be compensated at a rate above this minimum. The above
minimum rate shall be exempt from any charge and/or deduction by
the employer.

Section 2. Accounting, clerical, office, or sales employees (exclud-
ing outside salesmen) in any office, department, or establishment
shall not be paid less than at the rate of Fifteen Dollars ($15.00)
per week in any city of 500,000 population or over, or in the immedi-
ate trade area of such city ; and not less than at the rate of Fourteen
Dollars and Fifty Cents ($14.50) per week in any city of between
250,000 and 500,000 population, or in the immediate trade area of

414

such city ; and not less than at the rate of Fourteen Dollars ($14.00)
per week in any other place.

Section 3. This Article establishes a minimum rate of pay re-
gardless of whether an employee is compensated 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 rates of pay as male
employees.

Section 5. Employers shall make payments of all wages due in
lawful currency or by negotiable check therefor payable on demand
at least twice a month.

Section 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 case an employer has not increased the rates of wages for
such employees prior to the effective date of this Code by an equitable
readjustment of all such wage rates such employer shall readjust all
such wage rates. This provision shall be interpreted in the same
manner that paragraph 7 of the President's Reemployment Agree-
ment has been interpreted by the Administrator in Interpretations
Nos. 1 and 20.

Article V — General Labor Provisions

Section 1. No persons under 16 years of age shall be employed
in the Industry nor anyone under 18 years of age in manufacturing
operations.

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 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. Within each State this Code shall not supersede any
State or Federal laws 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.

Section 6. Employers shall not reclassify employees or duties of
occupations performed by employees or engage in any other subter-
fuge so as to defeat the purposes of the Act.

415

Section 7. Each employer shall post in conspicuous places in each
department full copies of this Code.

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
employer obtains from the State Authority designated by the United
States Department of Labor a certificate authorizing his employ-
ment at such wages and for such hours as shall be stated in the
certificate. Each employer shall file with the Code Authority a list
of all such persons employed by him ; the number of such employees
shall not exceed five per cent (5% ) of the total number of employees.

Section 9. 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.

Article VI — Administration

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

Section 1. Organization and Constitution of Code Authority :

(a) The Code Authority shall consist of three individuals or such
number as may from time to time be approved by the Administrator,
who shall be representatives of the Preformed Plastic Products In-
dustry, to be elected as hereinafter provided. The Administrator,
in his discretion, may appoint from one to three additional members
who shall not, however, be vested with voting rights and shall serve
without expense to the members of the Industry.

(b) All voting members of the Code Authority shall be elected
from Members of the Industry and shall be elected by a vote of two-
thirds of all members of the Industry who are qualified to vote at a
meeting of the Members of the Industry to be held within ten days
after the effective date of this Code.

(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 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 election of the Code
Authority.

(d) The Code Authority shall adopt its own rules of procedure
and may delegate its authority or such part thereof to such agencies
as it shall select, provided nothing herein shall relieve the Code Au-
thority from its duties or responsibilities under this Code and such
agencies shall at all times be subject to and comply with the provisions
thereof.

(e) Members of the Industry shall be entitled to participate in
and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting to
and by agreeing in writing to comply with the requirements of this
Code and bearing their proportionate share of the reasonable expense

416

of its administration. The reasonable share of the expenses of ad-
ministration shall be determined by the Code Authority. Such
expenses shall be determined on the basis of volume of business
and/or sucli other factors as may be deemed equitable to be taken
into consideration.

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

(a) With a view to keeping the President and the Members of the
Industry informed as to the observance or nonobservance of the Code,
and as to whether Members of the Industry are taking appropriate
steps to effectuate the declared policy of the Act, the Code Authority
shall :

Report to the Administrator at such times and concerning such
conditions in the Industry as the Administrator may from time to
time require, and every Member of the Industry shall file in the office
of the Code Authority at such time, in such form, and for such
periods as required by the Code Authority, duly certified reports
with respect to wages, hours of labor, conditions of employment,
number of employees, production, and other matters pertinent to the
proper supervision of the Industry as determined by the Code
Authority.

(b) In order to assist in making effective the reports from the
Industry and in eliminating unfair competition, the Code Authority
shall make studies and investigations for the establishment of classi-
fications and standards of quality for products of the Industry, in
cooperation with some Federal Government agency or agencies.

(c) 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 relationships between production and
distribution employers under this Code and under such others to
the end that such fair trade practices may be proposed to the Admin-
istrator as amendments to this Code and such other Codes.

(d) All confidential information of any nature requested by the
Code Authority shall be collected by -the Code Authority or other
agency not a member of the Industry selected by the Code Author-
ity, and such information shall be kept confidential except when
required by the Code Authority for the proper enforcement of the
Code, and with the further exception that all such information shall
be fully available to the Administrator. Only such information
may be so requested by the Code Authority which is appropriate
to the proper supervision of the Industry or to the enforcement of
this Code.

(e) The Code Authority shall designate an agent or agents, not
members of the Industry, to investigate complaints of violations of
the Code, under such rules and regulations as may be prescribed
by the Administrator.

(f ) The members of the Industry shall facilitate all such investi-
gation by opening their correspondence, books, and accounts relat-
ing to alleged violation for examination by such authorized agent
and by furnishing relevant information. If, upon investigation any
complaint of a violation of the Code shall be substantiated in any
material respect, the member of the Industry guilty of such violation

417

.shall pay the cost of the investigation; otherwise the cost of the
investigation shall be borne by the complainant member of the
Industry.

The provisions of this Sub-section (f) of Section 2, Article VI,
shall apply only to those members of the Industry who agree thereto
in writing which agreement shall be separate and apart from the let-
ter of assent referred to and. required of the members of the Indus-
try by the provision of Sub-section (e) of Section 1 of Article VI.

(g) All such information shall be kept confidential by the agent,
except that in the event of any such violation being substantiated
by the investigating agency the Code Authority shall be informed
and shall present evidence thereof to the proper department, agency,
cr judicial branch of the Government.

Section 3. (a) Any interested party shall have the right of com-
plaint to the Code Authority, and a prompt hearing and decision
shall be made thereon under such rules and regulations as it may
prescribe, in respect to any act of any agent or agency designated
by the Code Authority to act in its behalf.

(b) Any interested party shall have the right of appeal to the
Administrator, under such rules and regulations as he shall pre-
scribe, with respect to any decision, rule, regulation, order or finding
made by the Code Authority.

Section 4. In addition to information required to be submitted
to the Code Authority, there shall be furnished to such Federal
and State Government agencies such statistical information as the
Administrator may deem necessary for the purposes recited in
Section 3 (a) of the National Industrial Recovery Act, provided that
nothing in the Code shall relieve any member of the Industry of any
existing obligation to furnish reports to government agencies.

Section 5. The Code Authority may recommend to the Adminis-
trator Amendments and modifications to this Code which shall
become parts of this Code upon approval of the Administrator after
such notice and hearing as he shall prescribe.

Section 6. If the Administrator shall determine that any ac-
tion of the Code Authority or agency thereof is unfair or unjust
or contrary to public interest, the Administrator may require that
such action be suspended for a period of not to exceed thirty days
to afford an opportunity for investigation of the merits of such
action and further consideration by the Code Authority or agency
pending final action which shall not be effective unless the Adminis-
trator 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 7. 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 Articles
of Association, By-Laws, Regulations, and any amendments when
made thereto, together with such other information as to its
membership, organization and activities as the Administrator may
deem necessary to effectuate the purposes of the Code.

418
Article VII — Publicity of Prices

Section 1. Within ten (10) days after the effective date hereof
each member of the Industry shall publish to the trade concerned
and file with the Code Authority his current prices, discounts,
and other conditions of sale, which shall be uniform throughout the
United States, and the Code Authority shall cause copies thereof
to be sent immediately to all members of the Industry. Revised
prices, discounts, and other conditions of sale shall be filed from
time to time thereafter with the Code Authority by any member
of the Industry to become effective upon the date specified therein,
which shall not be later than ten (10) days after filing, and any
reduced prices, or more favorable discounts or other conditions of
sale shall be filed with the Code Authority ten (10) days in advance
of the effective date of the lower prices and/or more favorable
discounts or other conditions of sale unless the Code Authority
shall authorize a shorter period subject to the approval of the
Administrator. Copies of revised price lists and more favorable
discounts and other conditions of sale with notice of the effective
date specified shall immediately be sent by the Code Authority to all
members of the Industry, who thereupon may file, if they so desire,
revisions of their price lists and/or discounts and other conditions
of sale, which shall become effective upon the date when the revised
price lists and/or discounts and other conditions of sale first filed
shall go into effect, provided the price lists and/or discounts and
other conditions of sale are not lower or more favorable than the
revised price lists and/or discounts and other conditions of sale
first filed.

All changes in prices, terms and conditions of sale shall be pub-
lished to the trade concerned on or before the effective date of such
change pursuant to such rules and regulations as may be established
by the Code Authority.1

Section 2. All price lists or changes in price lists filed with the
Code Authority and all price lists or changes in price lists forwarded
by the Code Authority to members of the Industry shall be forwarded
by registered mail with a return receipt requested. All prices, terms
and conditions of sale filed with the Code Authority shall be avail-
able to all interested persons.

Article VIII — Protection of Customers

Section 1. Any member of the Industry who wishes to protect
his customers on closed contracts and quotations actually outstanding
against an increase in his published prices shall conform to the
rules established by the Code Authority with the approval of the
Administrator for granting such protection.

Section 2. Every member of the Industry shall file with the Code
Authority, within twenty (20) days following a price increase, a
complete record of all items involving the protection of customers.

1 See paragraph 2 of order approving this Code.

419
Article IX — Affiliates and Patent Rights

Section 1. Members of the Industry shall be responsible for the
observance by their affiliates of all the provisions of Articles III, IV,
V, VII, VIII, and X of this Code with respect to the production
and/or sale of the products included in Section 1 of Article II, pro-
vided that in the event of provisions of Articles VII and X being
observed by any such affiliated corporation, then the Member of the
Industry of which such corporation is an affiliate need not comply
with the publicity requirements of Article VII with respect to prices,
terms, and conditions of sale made to such affiliate corporation.

Section 2. Nothing in Articles VI, VII, VIII, IX, X, XI and
XII of this Code shall be construed as prohibiting any member of
the Industry from exercising all its and/or their lawful patent rights
or requiring any member of the Industry to do any act in conflict
with the terms of any valid patent licensing agreement.

Article X — Publicity of Trade Classifications

Section 1. Within ten (10) days after the effective date of this
Code, each Member of the Industry shall publish to his trade and
file with the Code Authority all classifications which have been estab-
lished by him to determine the prices, terms or conditions of sale
made applicable by him to the different classes of his trade, for
products covered by this Code. He shall publish to the trade and
file promptly with the Code Authority any changes made by him
in such classifications and any additional classifications.

Each member shall file at such times, in such manner, and at such
places as may be designated by the Code Authority the names and
locations of his distributors, grouped according to his own stated
classifications then in effect. The names and locations so filed shall
be available to the trade and to the members of the Industry,
provided, that the name of the manufacturer submitting any such
names and locations shall not be disclosed without consent except to
the extent necessary to prevent violation of this Article.

Article XI — Trade Practices

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

Section 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 other-
wise.

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

420

wise having the tendency or capacity to mislead or deceive customers
or prospective customers.

Section 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 busi-
ness of the employer of such employee, the principal of such agent
or the represented party, without the knowledge of such employer,
principal or party. Commercial bribery provisions shall not be
construed to prohibit free and general distribution of articles com-
monly used for advertising except so far as such articles are actually
used for commercial bribery as hereinabove defined.

Section 4. Interference with Contractual Relations. — Maliciously
inducing or attempting to induce the breach of an existing oral or
written contract between a competitor and his customer or source of
supply, or interfering with or obstructing the performance of any
such contractual duties or services.

Section 5. 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 in-
volves lottery, misrepresentation, or fraud.

Section §. Defamation. — The defamation of competitors by falsely
imputing to them dishonorable conduct, inability to perform con-
tracts, questionable credit standing, or by other false representa-
tions, or by the false disparagement of the grade or quality of their
goods.

Section 7. Threats of Litigation. — The publishing or circulariz-
ing of threats or suits for infringement of patents or trade marks,
or of any other legal proceedings not in good faith, with the tend-
ency or effect of harassing competitors or intimidating their cus-
tomers.

Section 8. Espionage of Competitors. — Securing confidential in-
formation concerning the business of a competitor by a false or
misleading statement or representation, by a false impersonation of
one in authority, by bribery, or by any other unfair method.

Section 9. Selling at Less than Published Prices. — The selling of
any Product to any purchaser thereof at less than the published
price applicable to such class of purchaser ; or to effect a lower price
by any means whatsoever, either directly or indirectly, or by any
subterfuge, or to use or effect a lower price than that published for
all customers of the same class except as provided in Article VIII.
Section 10. Secret Rebates. — The secret payment or allowance of
rebates, refunds, commissions, credits, or unearned discounts, whether
in the form of money or otherwise, or the secret extension to certain
purchasers of special services or privileges not extended to all pur-
chasers on like terms and conditions.

Section 11. Selling Below Cost. — The selling of the Product be-
low the manufacturer's individual cost except to meet any price pub-
lished by another manufacturer in accordance with Article VII; in
meeting these prices the manufacturer shall comply with all the
provisions of Article VII.

Section 12. Free Goods, or False Billing. — In any way delivering
free goods to any customer or prospective customer; or invoicing

421

goods to any other person than the person by whom payment is to be
made; or making any fictitious invoice for any shipment; paying a
price in excess of the prevailing open-market price for any product
of this Industry; paying for materials of his own manufacture more
than the original net delivered price thereof.

Section 13. Other Unfair Practices. — Nothing in this Code shall
limit the effect of any adjudication by the Courts or holding by the
Federal Trade Commission on complaint, finding, and order, that
any practice or method is unfair, providing that such adjudication
or holding is not inconsistent with any provision of the Act or of
this Code.

Article XII — Selling Below Reasonable Cost

Section 1. The Code Authority shall cause to be formulated an
accounting system and methods of cost finding and/or estimating
capable of use by all members of the Industry. After such system
and methods have been formulated, full details concerning them
shall be made available to all members. Thereafter all members
shall determine and/or estimate costs in accordance with the prin-
ciples of such methods.

Section 2. 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 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 this emergency, it shall be an unfair trade prac-
tice for any member of the Industry to sell or offer to sell any prod-
uct 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 Author-
ity, upon its own initiative, or upon the request of any interested
party, shall cause the determination to be reviewed.

Article XIII — General

Section 1. 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 tor any act of any other member, officer, agent or employee
of the Code Authority. Nor shall any member of the Code Author-
ity be liable to anyone for any action or omission to act under the
Code, except for his own willful misfeasance or non-feasance.

Section 2. 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.

422

Section 3. This Code, except a,s 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 by the Code Authority, and such notice and hearing as
he shall specify, and to become effective on approval of the President.

The provisions of this Code shall remain in effect until and unless
modified or eliminated in accordance with the foregoing provisions of
Section 2 hereof and of this Section 3, or until the expiration of the
Act, namely, June 16, 1935, or sooner, if the President shall, by proc-
lamation, or Congress shall, by joint resolution, declare the emer-
gency recognized by Section 1, Title I, of the Act, has ended.

Article XIV — Monopolies, Etc.

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

Article XV — Installation

Members of the Industry engaged in installation of the products
or commodities of this Industry shall be governed by the hours, wages
and other labor provisions of such approved Code for the Construc-
tion Industry as may be designated by the Administrator after such
notice and hearing as he may prescribe.

Article XVI — Effective Date

This Code shall become effective on the second Monday after its
approval pursuant to the provisions of the Act.

Approved Code No. 359.
Registry No. 1637-13.

Approved Code No. 360
CODE OF FAIR COMPETITION

FOR THE

BRUSH MANUFACTURING INDUSTRY

As Approved on March 23, 1934

ORDER

Approving Code of Fair Competition for the Brush Manufac-
turing 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 Brush 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 :

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
Geo. L. Berry,

Division Administrator.

Washington, D.C.,

March 23, 1934.

48304° 425-134 34 (423)

REPORT TO THE PRESIDENT

The President,

The 'White Rouse.

Sir : A Public Hearing on the Code of Fair Competition for the
Brush Manufacturing Industry, submitted by the American Brush
Manufacturers Association, located at 505 Arch Street, Philadel-
phia, Penna., was conducted in Washington on the 21st of Novem-
ber, 1933, in accordance with the provisions of the National Indus-
trial Recovery Act. The Association claims to represent 85 percent
of the Industry.

The maximum hours permitted under this Code are forty (40) per
week, averaged over a three months period, with forty-eight hours
permitted in any one week. Repairmen, engineers, electricians and
cleaners are permitted to work an average of forty-four (44) hours
per week during any three months period. Truckmen, watchmen
and firemen are permitted to work forty-eight (48) hours per week.

The minimum wage provided in this Code is thirty-two and a
half cents (32%^) per hour. Females performing substantially the
same work as males are to be paid the same rate of pay as male
employees. Provision is made for adjustment of wages above the
minimum. ^ j

The Brush Manufacturing Industry includes establishments in
which brushes and allied products are manufactured, repaired and
sold originally. Imports have caused a serious problem to this
industry, those from Japanese and German sources being the most
troublesome, having entered this country in large quantities at
extremely low unit prices. The making of brushes in Federal peni-
tentiaries is another source of severe competition. The most modern
of equipment is now being used by these institutions thus supplying
the market with brushes which otherwise would be purchased from
the industry.

In 1929 approximately 7.200 people were employed in this indus-
try. This had dropped* to 5,400 in June, 1933. In October, 1933, it
is estimated that this had risen to 6,600, an increase of 23.9 percent.
This is only 8% under the peak year of 1929.

Reports from members of the industry disclose that the minimum
wage proposed in the Code will mean an increase over the minimum,
just prior to the President's Re-Employment Agreement, of approxi-
mately 50 percent and an increase over 1929 of approximately 30
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 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

(424)

425

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

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

(c) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without 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.

This Industry has cooperated in a most satisfactory manner with
the Administrator in the preparation of this Code. From evidence
adduced during this hearing and from recommendations and reports
of the various Advisory Boards it is believed that this Code as now
proposed and revised represents an effective, practical, equitable solu-
tion for this Industry and for these reasons this Code has been
approved.

Kespectfully,

Hugh S. Johnson,

Administrator,
March 23, 1934.

CODE OF FAIR COMPETITION FOR THE BRUSH MANU-
FACTURING 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 Brush Manufacturing Industry and shall
be the standard of fair competition for this Industry and binding
upon every member thereof.

Article II — Definitions

1. The term " Industry " or " Brush Manufacturing Industry ",
as used herein includes the manufacturing, repairing and original
selling and distributing by manufacturers of brushes, and kindred
and allied products twisted in wire, and such branches or subdivi-
sions thereof a,s may from time to time be included under the pro-
visions of this Code, by the President of the United States after
such notice and hearing as he may prescribe.

2. The term " member of the Industry " includes, but without
limitation, any individual, partnership, association, corporation or
other form of enterprise engaged in the industry, either as an em-
ployer or on his or its own behalf.

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

4. The term " carrying account '? as used herein means one where
an understanding exists between the seller and the buyer to the effect
that the buyer shall be required to pay his account with the seller
down only to a .specified amount, regardless of when the amount is
due, resulting substantially in the effect of a consignment to that
extent.

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

Article III — Hours

1. No employee, except as hereinafter provided, shall be permitted
to work more than forty (40) hours per week, when averaged over
any three months period, nor more than forty-eight (48) hours in
any one week, nor more than ten (10) hours in any one day.

(a) The provisions o,f this article shall not apply to employees
engaged in an executive, administrative, supervisory and/or tech-
nical capacity (excluding however persons engaged in skilled opera-
tions), who receive thirty-five dollars ($35.00) or more per week,
nor to outside salesmen.

(426)

427

(b) No repairman, engineer, electrician or cleaner, excluding ma-
chine cleaners, shall be permitted to work more than an average of
forty-four (44) hours per week during any three (3) months period
nor more than forty-eight (48) hours in any one week.

(c) No truckdriver, watchman and/or fireman shall be permitted
to work more than forty-eight (48) hours during any one week.

(d) The provisions of this article shall not apply to employees
engaged in emergency repair work, involving the protection of life
or property or repairs to machinery in the case of a breakdown or
to permit the continued normal operation of such machinery, pro-
vided, however, that all such employees shall be paid at the rate of
time and one-half their normal rate of compensation for all hours
worked per week in excess of forty-four (44) hours per week.

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

Article IV — Wages

1. No employee shall be paid at a rate less than thirty-two and a
half cents (32^0) per hour.

2. 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 performance or other basis.

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

4. It is the policy of the members of this Industry to refrain from
reducing the compensation for employment which compensation was
prior to June 16, 1933, in excess of the minimum wage herein set
forth, notwithstanding, that the hours of work in such employment
may be reduced; and, unless since such date such adjustments have
been made, all members of this industry shall endeavor to increase
the pay of all employees in excess of the minimum wage, as herein
set forth, by an equitable adjustment of all pay schedules.

Article V — General Labor Provisions

1. No person under sixteen (16) years of age shall be employed
in this industry; nor any one under eighteen (18) years of age at
operations or occupations which are hazardous in nature. 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 com-
plied with this provision as to age if he shall have on file a certificate
or permit duly issued by the authority in such State empowered to
issue employment or age certificates or permits, showing that the
employee is of the required age.

2. 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.

428

(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 employer shall reclassify employees or duties of occupations
performed as they existed on October 1, 1933, or engage in any other
subterfuge, for the purpose of defeating the purpose of the Act or of
this Code.

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

5. All employers shall post and keep posted complete copies of
Articles III, IV, V and VI of this Code relating to hours, wages and
labor in conspicuous places accessible to employees.

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

Article VI — Home Work

1. All home work in this Industry is hereby prohibited, except
by specific permission of the Administrator in each individual case,
and provided employees engaged in home work shall be paid the
same wage rates that are paid for identical occupations in the shop.

Article VII — Divisional Organization

1. The Brush Manufacturing Industry shall be divided into the
following divisions:

(a) Toilet Brush Manufacturers' Division.

(b) Shaving Brush Manufacturers' Division.

(d) Household Brush Manufacturers' Division.

(e) Industrial, Jewelers' and Dental Brush Manufacturers' Divi-
sion.

(f) Twisted-in-Wire Manufacturers' Division.

(g) Wire Brush Manufacturers' Division.

2. Additional Divisions may from time to time be formed within
the Industry with the approval of the Administrator.

Article VIII — Administration

ORGANIZATION AND CONSTITUTION

1. A Code Authority is hereby established to cooperate with the
Administrator in the administration of this code and shall consist
of twenty-one (21) members, or such other number as may be ap-
proved from time to time by the Administrator, to be selected as

429

hereinafter set forth. The Administrator in his discretion may
appoint not more than three (3) additional members without vote,
and without compensation from the industry, to serve for such period
of time and to represent the Administrator or such group or groups
as he may designate.

(a) The Code Authority shall consist of three (3) representatives
of each of the above named divisions who shall be elected by each
division through a fair method of election approved by the Admin-
istrator. Any member of the Industry within that particular
division is eligible to vote at meetings of the division for the elec-
tion of members representing the division upon the Code Authority.
Under no circumstance shall the Code Authority be composed of
persons more than one of whom is an officer, director, employee
or agent of the same company or any subsidiary company.

2. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall
impose no inequitable restrictions on its membership, and shall 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 effectu-
ate 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 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 purpose of the Act, he may require
an appropriate modification in the method of election of the Code
Authority.

4. Any member of the Industry shall be entitled to participate
in and share the benefits of the activities of the Code Authority
and to participate in the selection of the members thereof by assent-
ing to and complying with the requirements of this Code and sus-
taining his 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 the disapproval
of the Administrator, 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,
exercising reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to act under
this Code except for his own willful mis-feasance or non-feasance.

6. 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 author-

430

ity or agency pending final action, 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.

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

(a) To administer the provisions of this Code, provide for the
compliance of the industry with its provisions and to propose and
submit to the Administrator its recommendations for amendments
and/or modifications of this Code which shall become effective as a
part hereof upon approval of the Administrator after such notice
and hearing as he shall specify.

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

(c) To obtain from members of the Industry such information
and reports as are required for the administration of the Code and
to provide for submission by members of such information and
reports as the Administrator may deem necessary for the purposes
recited in Section 3 (a) of the Act, which information and reports
shall be submitted by members to such administrative and/or govern-
ment agencies as the Administrator may designate, which adminis-
trative and/or government agencies shall hold the same confidential
except as may be directed by the Administrator or as may be re-
quired by law. 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 contained herein shall relieve the
Code Authority of its duties or responsibilities under this Code and
that such trade associations and agencies shall at all times be sub-
ject to and comply with the provisions hereof.

(e) To secure from members of the Industry who assent to this
code and/or participate in the activities of the Code Authority such
proportionate payment of the reasonable expenses of maintaining
the Code Authority as may be determined by the Code Authority
to be fair and equitable.

(f) To recommend to the Administrator further trade practice
provisions to govern members of the several Divisions in their rela-
tions with each other or with other industries and to recommend
to the Administrator measures for industrial planning, including
stabilization of employment.

Article IX — Sales Provisions

1. Each division of the Industry may, by an affirmative vote of
sixty percent (60%) in number and dollar volume of the manufac-
turers of such division, recommend an adequate system for cost find-
ing, capable of uniform application within such division, and which
members of such division shall adopt or conform their accounting
systems to, within fifteen (15) days after its approval by the Admin-

431

istrator. Said system for cost finding shall be used by all members
of the division as a basis for cost finding of all products of the divi-
sion, and within such division no member shall sell such products
below his individual cost as determined by the use of such cost
finding system, except as hereafter provided.

(a) Any manufacturer of the Division may dispose of products
which are known as " seconds ", " close-out numbers ", " sample
stocks " and " sample line brushes " below cost if he first submits
to an impartial agency approved by the Code Authority by regis-
tered mail a descriptive list of such products together with quantities
and prices at which they will be offered, and the prices so named
shall not be reduced unless and until the manufacturer files revised
selling prices with such impartial agency, and thereafter, upon the
sale of such products the manufacturer shall immediately notify
such impartial agency advising the name and address of the buyer.
In no case shall the sale of such products exceed such percent of the
total volume of dollar sales of such manufacturer in one year, as may
be determined by each Division from time to time, subject to the
approval of the Administrator.

(b) Any manufacturer of the Division in order to meet bona fide
competition in any specific instance may sell the products of such
Division at a price not less than the lowest competing price of com-
parable items.

2. When a cost finding system shall have been adopted as pre-
scribed above by any Division and the Code Authority finds that a
manufacturer is selling the products of such Division in violation of
this Article, it may require such manufacturer to submit to an im-
partial agency approved by the Code Authority relevant and com-
plete data regarding such sales including all elements of cost prop-
erly and accurately figured, and if the Code Authority finds that such
sales constitute a violation of this Code it may submit the same to the
Administrator for appropriate action.

3. Any division of the Industry may elect through an affirmative
vote of sixty percent (60%) in number and sixty percent (60%) in
dollar volume to sell its products only upon open prices, terms and
conditions filed by each member of such division, with such impartial
agency as the division, with the approval of the Administrator, may
determine. Each member of such division shall then immediately
file with said agency his current price list and discount sheet at which
he proposes to sell the products of such division and any changes in
prices by any member of such division shall be filed with said agency
and shall become effective immediately upon the filing thereof, or
sixty (60) days after the effective date of this Code they shall become
effective after such period or time as shall hereafter be established
by the Code Authority with the approval of the Administrator.
Such agency shall immediately notify all other members of the divi-
sion of such changes and shall also make the same available to any
other interested party who may apply for same. Variations from
such open and publicly announced prices, terms and conditions, shall
constitute an unfair method of competition.

432

Article X — Trade Practices

The following practices shall constitute unfair methods of com-
petition and are prohibited :

1. No member of the industry shall falsely mark or brand 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 prep-
aration of any product of the industry.

2. No member of the Industry shall publish or cause to be pub-
lished advertising (whether printed, radio, display or of any other
nature) which is misleading or inaccurate in any material particu-
lar nor shall any member in an way misrepresent any product of the
industry.

3. 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.

4. No member of the industry shall extend to certain purchasers
any rebates, refunds, commissions, credits, special services, privi-
leges or discounts not extended to all purchasers of the same class
on like terms and conditions.

(a) Nor give allowances for advertising, or extra discounts, or
datings on bills, or special credit terms, which are not extended to all
purchasers of the same class under like terms and conditions.

(b) Nor make allowances and/or payments, directly or indirectly,
to or for a customer in connection with that customer's cooperative
advertising, which are not extended to all purchasers of the same
class under like terms and conditions.

(c) Nor make allowances and/or payments, directly or indirectly,
for space within and/or on a buyer's premises for any purpose what-
soever, which are not extended to all purchasers of the same class
under like terms and conditions.

5. No member of the industry shall issue invoices, or other docu-
ments covering the sale of brushes in which the prices, terms, dis-
counts, allowances, or any other condition or terms of sale or facts
relating thereto are falsely stated; or issue invoices or other docu-
ments with the understanding that the buyer is to pay a price or
receive any considerations that are different from those shown on
the invoice.

6. No member of industry shall knowingly ship or deliver brushes
which do not conform to samples submitted, or to specifications upon
which prices are quoted or to other representations made prior to
securing an order.

7. No member of the industry shall knowingly use or substitute
materials inferior in quality or of a different nature and character
than those specified by the purchaser and promised at the time the
order is accepted.

8. No member of the industry shall either directly or indirectly
exchange, promote, encourage or in any way assist in the exchange
of brushes, other than those manufactured by him or bought for the
purpose of resale.

433

9. No member of the industry shall ship or deliver any goods on
consignment or engage in the practice of carrying accounts, as
denned in Section 4 of Article II, whether in whole or in part,
except that a manufacturer may take over a stock of goods on a
consigned basis for legitimate credit reasons but in such case he
shall immediately report the circumstances to the Code Authority
and such stock of goods, so taken over, shall not be carried on
consignment for a period longer than three months.

Article XI — Freight Charges

1. No member of the Industry shall allow or pay, directly or
indirectly, secretly or otherwise, freight and/or delivery charges
except as follows :

(a) It shall be optional with each member of the Industry to
allow and/or pay freight and/or delivery charges but such allow-
ances shall be not greater than f.o.b. manufacturer's shipping point
with actual freight as defined b}^ Interstate Commerce Commission
classifications, allowed or prepaid to any point within the United
States, and in no case shall store door delivery be prohibited.

(b) In Zone 1, as defined under the Federal post office parcel
post regulations surrounding the manufacturer's plant, such manu-
facturer may make delivery by- any means at his command.

(c) If a manufacturer elects to allow or pay freight and/or
delivery charges outside of Zone 1, as defined by Federal post office
parcel post regulations, he may elect to ship by any means at his
command provided the total allowances do not exceed the freight as
described in Subsection (a) of this section.

Article XII — 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 Title I of the Act, from
time to time to cancel or modify any order, approval, license, rule
or regulation issued under said Act.

2. This Code, except as to provisions required by the Act, may be
modified or amended on the basis of experience or changes in cir-
cumstances, such modifications or amendments to be based upon
application to the Administrator and such notice and hearing as he
shall specify, and to become effective on approval of the President
unless otherwise provided.

Article XIII — 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 XIV — Non-waiver of Constitutional Rights

1. By presenting this Code, those assenting thereto are not thereby
waiving any of their constitutional rights.1

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

434

Article XV — Right to Object

1. By presenting this Code, the members of the Industry do not
hereby consent to any modification thereof and they reserve the
right to object individually or jointly to any such modifications.1

Article XVI — Effective Date

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

Approved Code No. 360
Registry No. 1609-1-02

Deleted as per paragraph 2 of order approving this Code.

Approved Code No, 361
CODE OF FAIR COMPETITION

FOR THE

PERFUME, COSMETIC AND OTHER TOILET
PREPARATIONS INDUSTRY

As Approved on March 23, 1934

ORDER

Code of Fair Competition for the Perfume, Cosmetic and other
Toilet Preparations 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 Perfume, Cosmetic and other Toilet
Preparations 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 b.y 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. D. Whiteside,

Division Administrator*

Washington, D.C.,

March 23, 1934

48305" 425-135 34 (435)

REPORT TO THE PRESIDENT

The President,

The White House.

Sir : This is a report on the Hearing on the Code of Fair Compe-
tition for the Perfume, Cosmetic and Other Toilet Preparations
Industry, held in the Carlton Room of the Carlton Hotel on January
17, 1934. The Code, which is attached, was presented by duly quali-
fied and authorized representatives of the Industry, complying with
statutory requirements and claiming to represent seventy (70) per-
cent by volume of the Industry.

In accordance with the customary procedure every person who had
filed a request for appearance was freely heard in public; and regu-
latory requirements were complied with.

THE INDUSTRY

The Industry comprises about 650 concerns, having an investment in
1929 of approximately $80,000,000. Aggregate annual sales fell from
$201,689,000 in 1929 to about $140,000,000 in 1932. In 1929 the
Industry employed 19,495 persons of whom 13,109 were wage earners.

PROVISIONS OF THE CODE

The Code provides a basic work week of 40 hours which is a
reduction in working time of 13% in the Northern states and 25%
in the Southern states from the respective 1929 figures. It is be-
lieved that the 40 hour week will maintain employment in normal
periods almost equal to the 1929 figure whereas during peak periods
employment will be more than the 1929 average.

The basic minimum hourly rate of 35c1 in the North and 321/2C' in
the South should provide minimum weekly earnings noticeably
above those in effect prior to the President's Reemployment Agree-
ment. It is estimated payrolls will be increased 15% in normal and
about 25% in peak periods above July 1933 figures and average
purchasing power will be restored nearly to the 1929 level.

At the public hearing considerable controversial material was
presented pertaining to the employment of demonstrators and to
the corrollary questions of the payment of commissions by manufac-
turers to retail sales clerks, and other forms of special sales con-
cessions incident thereto. For a number of years the Industry has
indulged in these practices and as a consequence many competitive
abuses have arisen, which can not be directly eliminated without
danger of destroying some bona fide merchandising methods. This
Code provides an open price system designed to put these competi-
tive abuses into the open and it is believed this procedure will cause
their elimination. However, to be sure the Code will be effective in

(436)

437

this respect, the Code Authority is instructed to gather evidence as
to the effect of the trade practice provisions in correcting these
conditions and to report its findings to the Administrator at the end
of a six months' trial period.

The Code provides for the appointment of representatives to
serve on a Drug Industry Coordinating Council which shall have
representatives from all the various branches of the drug industry
and be constituted to act as an advisory and planning body for the
whole drug industry.

FINDINGS

The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the 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 inter-state and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and manage-
ment under adequate governmental sanctions and supervision, by
eliminating unfair competitive 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 trade industry normally employs not more than 50,000
employees; and is not classified by me as a major industry.

(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without 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
restrictions on admission to membership therein.

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

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

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

For these reasons, this Code of Fair Competition for the Perfume,
Cosmetic and Other Toilet Preparations Industry has been
approved.

Respectfully,

Hugh S. Johnson,

Administrator,
March 23, 1934.

CODE OF FAIK COMPETITION FOE THE PERFUME,
COSMETIC AND OTHER TOILET PREPARATIONS
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 of
Fair Competition for the Perfume, Cosmetic and Other Toilet Prepa-
rations Industry, and shall be the standard of fair competition for
such industry and shall be binding upon every member thereof.

Article II — Definitions

Section 1. (a) The term "Perfume, Cosmetic and Other Toilet
Preparations Industry " as used herein shall mean the industry each
member of which is engaged in the manufacturing, and/or in having
manufactured for him under his own brand and specifications, and/
or in importing in consumer packages for resale, and/or in packag-
ing from bulk materials under his name or brand, perfume, toilet
waters, face powders, face creams, toilet soaps, compact powders,
skin lotions, lipsticks, rouges, shaving creams, shaving soaps, and
other shaving preparations, bath salts and bath preparations, hair
tonics, hair lotions, shampoos, depilatories, personal deodorants, man-
icure preparations, and similar substances and preparations designed
and intended for external application to the person for the purpose
of cleansing, improving the appearance of, refreshing, or preserving
the person ; and such related branches or subdivisions as may from
time to time be included under the provisions of this Code by the
President of the United States, after such notice and hearings as he
may prescribe.

(b) This definition does not include dentifrices and mouth washes.

(c) This industry does not include the manufacture of soap or
soap products as defined in the Code of Fair Competition for the
Soap and Glycerine Industry — #623/03, as approved by the Presi-
dent on November 2, 1933, nor does this Code or any amendments
thereto that may subsequently be approved, apply in any manner
whatsoever to members of the Soap and Glycerine Manufacturing
Industry as defined in the aforementioned Code of that Industry.

(d) This definition does not include any retailer operating under
a retail code who performs any of the acts specified herein solely for
the purpose of sale at retail to his own customers, and not for the
purpose of sale to other distributors; provided, however, that where
a retailer operates a laboratory or plant distinct from his retail op-
erations, and employs a special group of employees to work primarily
in such laboratory or plant distinct from that group of his employees
who work primarily in his retail establishment (s), and such labora-
tory or plant performs any of the acts specified herein, whether for

(438)

439

sale to such retailer's own customers or to other distributors, such
laboratory or plant is subject to the provisions of this Code.

Section 2. The term " member of the industry " as used herein
shall mean any individual, partnership, association, corporation, or
other form of enterprise engaged in the industr}', either as an
employer or on his or its own behalf.

Section 3. The term "employee" as used herein shall mean and
include any and all persons engaged in the industry, however com-
pensated, except a member of the industry.

Section 4. The term " employer " as used herein includes anyone
by whom such employee is compensated.

Section 5. The term " establishment " as used herein shall mean
any plant, laboratory, business, branch or department thereof engaged
in this industry.

Section 6. The terms "Act " and "Administrator " as used herein
shall mean, respectively, Title I of the National Industrial Recovery
Act, and the Administrator for Industrial Recovery.

Section 7. The term " export " as used herein shall include, in
addition to shipments to foreign countries, shipments to territories
and possessions of the United States.

Section 8. The term " manufacturer of private brands " as used
herein shall mean a manufacturer of products embraced by this Code
who manufactures for individuals, firms, or corporations or others
who own or control the brand or trade-mark under which the article
is sold or distributed.

Section 9. The term " primary distributor " as used herein shall
mean a wholesale dealer or retail dealer to whom a member of the
industry sells its products directly.

Section 10. The term " P.M." as used herein shall mean a com-
mission or payment made by a member of the industry directly or
indirectly to any sales employee of any retail establishment not
owned by such member of the industry, for the purpose of inducing
such employee to exert special sales efforts on behalf of the goods of
such member of the industry; but shall not include payments or
commissions paid by such member of the industry to his own
demonstrators.

Section 11. Definitio?is of Personnel. — (a) The term " executive "
as used herein shall mean an employee solely responsible for the
management of a business or a recognized subdivision thereof.

(b) The term " outside salesman " shall mean a salesman who is
engaged not less than sixty (60) percent of his working hours out-
side the establishment or any branch thereof, by which he is
employed.

(c) The term " research and scientific worker " as used herein shall
mean an employee engaged primarily in research and scientific work
where special education or scientific training is essential.

(d) The term " outside service employee " as used herein shall
mean an employee engaged not less than 60% of his working hours
in delivering, installing, and/or servicing merchandise outside of
the establishment and shall include stable and garage employees.

(e) The term " watchman " as used herein shall mean an employee
engaged primarily in safeguarding the premises and property of a
member of the industry.

440

(f) The terms "firemen" and "engineers" as used herein shall
mean employees engaged primarily in the upkeep, preservation,
operation and repair of furnaces, boilers, engines, pumps, compres-
sors, heating and ventilating equipment, electrical generating plants,
or other machinery used for supplying heat, light, ventilation, or
power to a building or plant of a member of the industry ; but do not
include such employees as porters, elevator operators, cleaners, or
operators of machines used directly in a manufacturing process.

(g) The term " apprentice office worker " as used herein shall
mean an office employee with less than six (6) months total office
work experience.

(h) The terms " beginner " and " learner " as used herein shall
mean an employee with less than sixty (60) days working experi-
ence in the Industry.

(i) The term " demonstrator " as used herein shall mean a special
representative employed to work in retail stores not owned by a
member of the industry and whose salary is paid in whole or in part
directly or indirectly by such member of the industry.

Article III — Hours

Section 1. No watchman, fireman, engineer, or outside service
employee shall be permitted to work in excess of forty-eight (48)
hours per week averaged over a consecutive two weeks' period and in
no event shall be permitted to work in excess of twelve (12) da}7s
in any consecutive fourteen (14) days' period.

Section 2. No other employees except pharmacists, chemists, ex-
ecutives, and research and scientific workers, earning in excess of
thirty-five (35) dollars per week, and outside salesmen, 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 here-
inafter provided in Sections 3 and 4 of this Article, and in no event
shall any such employee be permitted to work in excess of six (6)
days in any consecutive seven (7) days' period.

Section 3. (a) The maximum hours fixed in the foregoing section
shall not apply to any employee on emergency maintenance or emer-
gency repair work involving breakdowns or protection of life or
property, but in any such special case such employees shall be paid at
the rate of at least time and one third (1%) for hours worked in
excess of the maximum hours herein provided.

(b) No employee working on continuous process operations shall
be permitted to work in excess of twelve (12) hours in any one day or
more than forty (40) hours in any one week.

Section 4. During a peak period, of not to exceed eight (8) weeks
in any calendar year, any employee shall be permitted to work not in
excess of forty-eight (48) hours in any one week, provided that he
shall not be permitted to work more than eight (8) hours in any
twenty-four (24) hour period, and that hours in excess of forty (40)
per week shall be compensated for at the rate of time and one third

(1%).
Section 5. 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.

441
Article IV — Wages

Section 1. No employee, other than apprentice office workers and
beginners and learners, shall be paid at less than the rate of thirty-
five (35) cents per hour, except employees in the States of North
Carolina, South Carolina, Georgia, Florida, Tennessee, Alabama,
Mississippi, Arkansas, Louisiana, Oklahoma and Texas where the
minimum rate shall be two and one half (2%) cents less per hour.

Section 2. No apprentice office worker, beginner or learner shall
be paid less than eighty (80) per cent of the rates specified in Sec-
tion one of this Article. Employees of this class thus compensated
shall not exceed five (5) per cent of the total number of employees in
any establishment.

Section 3. The weekly compensation for all employees as of June
16, 1933, shall not be reduced, notwithstanding that the hours worked
in such employment may be hereby reduced. Methods of adjustment
in hourly rates made since June 16, 1933, shall be reported to the
Code Authority.

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

Section 5. This Article establishes a minimum rate of pay which
shall apply irrespective of whether an employee is actually compen-
sated on a time-rate, piece-rate, or other basis.

Section 6. No employee now employed at a rate in excess of the
minimum shall be discharged and reemployed at a lower rate for
the purpose of evading the provisions of this Code.

Section 7. A person Avhose earning capacity is limited because of
age or physical' handicap may be employed on light work at a wage
below the minimum established by this Code if the employer 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.
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 hazardous in nature or dangerous to
health. The Code Authority shall submit to the Administrator
within six (6) months 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 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

442

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.

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

Section 4. Every employer shall provide for the safety and
health of his employees at the place and during the hours of their
emplo}Tment in accordance with the standards for safety and health
which shall be submitted by the Code Authority to the Adminis-
trator within six (6) months after the effective date of this Code,
and upon approval by the Administrator such standards shall
become operative as part of this Code.

Section 5. 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. All employers shall post complete copies of this Code
in conspicuous places accessible to employees.

Section 7. The hours worked by any employee, except outside
salesmen, during each day shall be consecutive, provided that an
interval not longer than one hour may be allowed for each regular
meal period, and such interval not counted as part of the employee's
working time. Any rest period which may be given employees shall
not be deducted from such employee's working time.

Section 8. No homework shall be allowed in this industry.

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

Authority

organization

Section 1. A Code Authority is hereby constituted to administer
this Code.

Section 2. The Code Authority shall consist of :

(a) Seven (7) 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 and without expense
to the industry, not to exceed three (3), as the Administrator may
appoint to represent such groups or interests or governmental
agencies and to serve for such periods as he may designate.

(c) The Administrator shall appoint a temporary Code Author-
ity to serve until the selection of a permanent Code Authority can

443

be accomplished. Such temporary Code Authority shall devise an
equitable method of selection of the Code Authority and submit the
same to the Administrator for approval within thirty (30) days
after the effective date of this Code.

Section 3. Members of the industry shall be entitled to participate
in and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting
to and complying with the requirements of this Code and sustaining
their reasonable share of the expense of its administration. Such
reasonable share of the expense of the administration shall be deter-
mined by the Code Authority, subject to review by the Adminis-
trator, on the basis of volume of business and/or such other factors
as may be deemed equitable.

Section 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 any-
one for any act of any other member, officer, agent, or employee of
the Code Authority. Nor shall any member of the Code Authority
exercising reasonable diligence in the conduct of his duties here-
under be liable to anyone for any action or omission to act under
the Code, except for his own wilful misfeasance or non-feasance.

Section 5. 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 asso-
ciation, by-laws, rules or regulations, and all 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 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 provide such
hearings as he may deem proper; and thereafter if he shall find
that the Code Authority is not truly representative or does not in
other respects comply with the provisions of the Act, may require
an appropriate modification in the method of selection of the Code
Authority, or any sub-Code Authority.

POWERS AND DUTIES

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

(a) 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
amendment or additions when made thereto, minutes of meetings
when held, and such other information as to its activities as the
Administrator may deem necessary to effect the purposes of the Act.

(b) To obtain from members of the industry for use of the Code
Authority, for the Administrator in the administration and enforce-
ment of the Code, and for the information of the President, reports
based on periods of one, two or four weeks, or multiples thereof, as

444

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) Subject to rules and regulations issued by the Administrator
to receive complaints of violations of this Code, make investigations
thereof, and bring to the attention of the Administrator recommenda-
tions and information relative thereto for such action as, in his dis-
cretion, the facts warrant.

(e) To coordinate the administration of this Code with such
other codes, if any, as may be related to the industry, or any sub-
division thereof, and to delegate to any other administrative author-
ity, with the approval of the Administrator, such powers as will
promote joint and harmonious action upon matters of common inter-
est, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code.

(f) To secure an equitable and proportionate payment of the ex-
pense of maintaining the Code Authority and its activities from
members of the industry, assenting to the Code.

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

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

(i) The Code Authority shall appoint representatives to serve on
any Drug Industry Coordinating Council which may be established
to be composed of representatives from the various code authorities
governing codes which are directly related to the drug industry, and
to act as a planning and coordinating agency, and as an agency
for the stabilization of employment, for the entire drug industry.

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 approved 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. General Administrative Provisions. — In addition to the
information required to be submitted to the Code Authority as set
forth in this Article 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

445

State agencies as the Administrator may designate; and nothing in
this Code shall relieve any member of the industry of any existing
obligations to furnish reports to Government agencies.

Section 10. An appeal from any section 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 Provisions

The Code Authority shall collect evidence as to the effect of the
following trade practice provisions in correcting the competitive
abuses in this industry. The Code Authority shall report to the
Administrator six months after the effective date of this Code, or
before if the facts warrant, on the conditions in the industry. If
the trade practice provisions in this Code are not adequate to correct
the competitive abuses, the Code Authority shall recommend such
modifications of or additions to the trade practice provisions which
they deem necessary and upon approval by the Administrator, after
such hearings as he shall specify, such recommendations shall become
operative as a part of this Code.

Section 1. (a) Where a commodity or article sold by a member
of the industry bears (or its label or'container bears), the trade-mark,
brand, or name of the producer or owner of such commodity or article
it shall be sold only on the basis of open prices to those engaged as
primary distributors of its products, clearly setting forth the basis
for granting of discounts, (specifying the particular function which
must be performed or the quantities which must be purchased) which
are uniform to all trade buyers of the same class of distributors and
which are strictly adhered to while effective.

No member of the industry shall offer a discount, payment, or
allowance on a functional basis except where an effective means exists
'for assuring the Code Authority that the function for which the
payment is made can be actually and faithfully performed.

(b) The term " open prices " as used in this section means a price
list which is published by each member of the industry for the equal
information of all primary distributors in the separate or the several
classes of primary distributors, and which states all the prevailing
terms of sale for the separate or the several classes of primary
distributors.

(c) This Section shall be strictly construed to prohibit any direct
or indirect price concession and/or payment of compensation for
the functions performed by those engaged as primary distributors
which is not declared in the published price list. The term " indirect
price concession " as used in this paragraph means any concession
or payment indirectly made by a member of the industry to a pri-
mary distributor or his agent, or his employee, through a rebate
or allowance or commission or refund or P. M. or payment or deal
or gift or by any other means whatever.

_ (d) Nothing in this section shall be interpreted so as to limit the
right of a member of the industry to select or classify his primary
distributors as he shall see fit.

(e) Each member of the industry shall file his current price list
with the Code Authority within thirty (30) days after the approval

446

of this Code. Each member of the industry shall file (by registered
mail) any subsequent revision of such price list with said Code
Authority.

(f ) Within thirty (30) days after the effective date of this Code,
every member of this industry shall file with the Code Authority
all brand names owned or used by them. And thereafter new trade
marks, brands or trade names shall be filed with the Code Authority
within five (5) days after the adoption thereof.

This section shall not apply to the sale of private brand products
on contract b}' a manufacturer or private brands to the owner of such
private brand, nor to the sale of products for export, nor to bids
submitted to governmental units.

Section 2. (a) 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 employees, the principal of such agent or the represented
party, without the knowledge of such employer, principal, or party.
This provision shall not be construed to prohibit free and general
distribution of articles commonly used for advertising except so far
as such articles are actually used for commercial bribery as here-
inabove defined

(b) No member of the industry or his agent shall pay p. m.'s or
commissions directly or indirectly to employees of retail dealers to
influence the sale of his products.

(This paragraph (b) is stayed for a period of six months after
the effective date of this Code, and shall go into effect at the end of
this period only upon the approval of the Administrator after such
hearing as he shall deem necessary, provided the Code Authority
shall have presented to the Administrator sufficient evidence to justify
such approval.)

Section 3. (a) No member of the industry shall employ or per-
mit to be employed for him any demonstrator or sales employee in a
retail establishment whose salary is wholly or partially directly or
indirectly paid by the member of the industry or his agent to work
in such retail establishment unless such demonstrator or sales em-
ployee is clearly and openly identified to the public as the employee
or agent of the member of the industry; provided, however, that
the demonstrator shall be available at all times for the sale of
merchandise.

(b) The payment of wages of a demonstrator or special sales
representative by the member of the industry in a retail establish-
ment whose identity is clearly and openly disclosed to the public as
being an employee or agent of the member of the industry shall not
be considered a form of unfair trade practice or of price discrimina-
tion.

Section 4. (a) Cooperative advertising, the expense of which is
borne or shared by the member of the industry and retailer, shall not
be considered a form of price discrimination, but no payment shall
be made for cooperative advertising until the member of the industry
has received proof of insertion and statement of the cost of such
advertising and the member of the industry's share thereof.

447

(b) No member of the industry or his agent shall make payment
for advertising, where such payment is made for the purpose of pay-
ing for the services of a special demonstrator or for the payment
of p. m.'s or other gratuities to the dealer's employees.

Section 5. The term " advertising " shall include all forms of
printed or oral recommendation of products manufactured or con-
trolled by the member of the industry and shall include publicity
of all kinds, including newspaper and magazine advertising, cir-
culars, labels, booklets, radio advertising, and statements made orally
in the promotion of sales of such products by salesmen or others
employed directly or indirectly by a member of the industry.

(a) No member of the industry shall make or cause or permit to
be made or published any false, untrue, or deceptive statements by
way of advertisement or otherwise concerning the grade, quality,
quantity, substance, character, origin, size, or preparation of any
product of the industry having the tendency and capacity to mislead
or deceive purchasers or prospective purchasers or to affect injuriously
the business of competitors. The truth of an advertisement shall
be judged by its intended effect as well as by a liberal rendering
thereof.

(b) No member of the industry shall use fictitious or deceptive
prices in advertising or selling merchandise, such as affixing labels
to merchandise with fictitious or deceptive prices thereon.

Section 6. (a) No member of the industry shall use advertising
or other representation which refers inaccurately in any material
particular to any competitors or their commodities, prices, values,
credit terms, policies, or services.

(b) No member of the industry shall brand or mark any com-
modity in any manner which tends to deceive or mislead purchasers
with respect to the brand, grade, quality, quantity, origin, size,
material content, or preparation of such commodity.

(c) No member of the industry shall, in selling or advertising
his merchandise, offer said merchandise as copies, blends, reproduc-
tions or imitations of another member of the industry where the
name or brand of such other member of the industry is used without
his consent.

Section 7. No member of the industry shall withhold from or in-
sert in any quotation or invoice any statement that makes it inaccu-
rate in any material particular.

Section 8. No member of the industry shall procure, otherwise
than with the consent of another member of the industry, any infor-
mation concerning the business of such other member which is
properly regarded by it as a trade secret or confidential within its
organization other than information relating to a violation of any
provision of the Code.

Section 9. No member of the industry who has performed his
part of the agreement of sale shall accept return of merchandise,
by the vendee, damaged or shop-worn without previous written
authorization by the said member of the industry. A charge to
cover the cost of reconditioning and handling such merchandise
shall be made.

448
Article VIII — Modification

Section 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the National Indus-
trial Recovery Act, from time to time to cancel or modify any order,
approval, license, rule, or regulation issued under Title I of said
Act and specifically, but without limitation, to the right of the Presi-
dent to cancel or modify his approval of this Code or any condi-
tions 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 modifications to be based upon application to the Ad-
ministrator and such notice and hearing as he shall specify, and to
become effective on the approval of the President.

Article IX — Monopolies, Etc.

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

Article X — Price Increases

"Whereas the policy of the Act to increase 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 costs
should be delayed. But when made such increases should, so far as
possible, be limited to actual increases in the sellers' cost.

Article XI — General

Section 1. No member of the industry shall use any subterfuge
to frustrate the spirit and intent of this Code, which is, among
other things, to increase employment, to remove obstructions to com-
merce, to shorten hours of work, and to raise wages.

Section 2. Except as may be subsequently provided in a specific
or supplementary export Code for this industry, the provisions of
this Code now or hereafter adopted with regard to prices, dis-
counts, deductions, allowances, extras, commissions, or methods
and/or terms of sale, are not to apply to direct export sales in course
of export, i.e., sales destined ultimately for export.

Article XII — Effective Date

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

Approved Code No. 361.
Registry No. 604-03.

Approved Code No. 362
CODE OF FAIR COMPETITION

FOR THE

PHOTOGRAPHIC AND PHOTO FINISHING

INDUSTRY

As Approved on March 23, 1934

PRESIDENT ROOSEVELT

EXECUTIVE ORDER

Code of Fair Competition for the Photographic and Photo

Finishing 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 my approval of a Code
of Fair Competition for the Photographic and Photo Finishing
Industry, and hearings having been held thereon and the Adminis-
trator 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; provided, how-
ever, that the provisions of Article IX, Section 3, insofar as they
prescribe a waiting period between the filing with the Code Au-
thority (i.e. actual receipt by the Code Authority) and the ef-
fective date of the revised price lists or revised terms and condi-
tions of sale be and they are hereby stayed pending further order
of the Administrator for Industrial Recovery.

FRANKLIN D. ROOSEVELT.

Approval recommended :
Hugh S. Johnson,

Administrator.
Washington, D.C.,

March 23, 1934.

48306° 425-136 34 (449)

LETTER OF TRANSMITTAL

The President,

The White House,

INTRODUCTION

Sir: This is the report of the Administrator to the President
on the application for, and public hearing on, a Code of Fair Com-
petition for the Photographic and Photo Finishing Industry as
proposed by two national associations, the Photographers' Associa-
tion of America and the Master Photo Finishers of America. The
Code as presented herewith was revised by authorized representa-
tives of the Code Committee in several conferences following the
public hearing.

The hearing was conducted in Washington on November 10 and
11, 1933. Every person who requested an appearance was freely
heard in accordance with the statutory and regulatory requirements.

There are but two truly national associations, the Photographers'
Association of America, founded in 1880, with a membership today
of nearly 5.000, and the Master Photo Finishers founded in 1923,
with a membership today of 1,721. There are approximately 20,000
units in all branches of the Photographic-Photo Finishing Industry ;
whereas a majority representation of the proponents is not indicated
in number of concerns, I do not doubt that the representation in
volume of business is 75% of the Industry.

DEFINITION

The definition of Photographic-Photo Finishing embraces all
types of photography except X-ray blue print, photostat, and motion
pictures. The definition includes 3 separate Divisions : portrait
photography, commercial and illustrative photography, and photo-
finishing. The definition embraces a productive function as well
as a service. The production and sale of photographs of natural
persons, properties, et cetera, for personal as well as for commercial
illustrative or professional uses, comprise the definition of the
portrait and commercial division of this Code. The photo-finishing
division includes the development and/or printing and sale of ex-
posed films and, though productive in a sense, is actually a service
in the generally accepted meaning.

ECONOMIC AND STATISTICAL MATERIAL

The combined Photographic and Photo Finishing Industry in
1932 furnished employment to approximately 34,000 employees.' In
1929, employees numbered 54,000. The total annual sales in the
Industry in 1929 were estimated at $199,000,000, while in 1932 the
aggregate sales were but $102,000,000. The tremendous decrease
in sales, approximately 50% since 1929, can be explained by the fact

(450)

451

that photography in the main is (excepting, of course, some of its
commercial aspects) purely a luxury business.

RESUME OF THE CODE

The proponents of the Code have established 40 hours per week
for all employees other than cameramen and drivers, who are limited
to 48 hours ; and watchmen, managerial capacity employees, members
working in their own behalf, who are limited to 52 hours; and
outside salesmen who are without limit. To meet seasonal require-
ments, there has been provided an OA^ertime allowance of 144 hours
in any one calendar year provided that such overtime shall be
compensated for at not less than one and one-third times the normal
hourly rate.

Evidence was presented at the hearing to indicate that more
stringent regulations of hours of employees would work a definite
hardship on members of the Industry in view of the crisis which
exists in the business at present. In this connection, it shall be
remembered that the ordinary portrait studio is a very small enter-
prise and that the endeavor is to provide for regular rather than
fitful employment.

A minimum wage of $15.00 a week, $14.50 and $14.00 similar to
the President's Reemployment Agreement has been established for
all employees except messengers and apprentices who shall be paid
not less than $12.00 a week, and except cameramen and drivers
for whom the minimum wage shall be increased proportionately, so
that the minimum wage for this latter class of workers shall be
not less than 48 times the proportionate hourly rate as set forth in
Article IV, Section 1 of the Code,

It should be noted that the August 1933 employment level had
increased by 2,156 or approximately 7%. It would seem that this
represents a fair picture of the effect of the President's Reemploy-
ment Agreement and while the increase is not large, nevertheless in
view of the very bad financial condition of the Industry and the
great number of employees who have been carried on the payrolls
in spite of greatly decreased volume, it is believed to be a creditable
showing. It is estimated that the wage paid today by the Industry
averages $11.00 per week. This figure includes many delivery boys
and apprentices who have been paid as low as $5.00 per week. The
operation of the minimum wage scale to this class of employees as
well as those in the upper brackets will contribute considerably to the
purchasing power deriving from the Industry.

The administration of the Code closely follows the lines recom-
mended by the N.R.A. Legal Division. The Code Committee is
arranging for the nomination and election of the Industry members
of the Code Authority, such arrangements to be completed not later
than May 15, 1934, which should allow time for the thousands of
units to become familiar with the Code and its operation. In the
interim, the Code Committee for the Photographic and Photo Fin-
ishing Industry is serving in this capacity.

Attention should be called to the Trade Practice Section, Article
VIII. Many evils have arisen within the Industry. These pertain
particularly to the practice of selling coupons. This method of sale
has resulted in a high pressure type of selling open to abuse. Cer-

452

tain coupon salesmen have been known to flood a city with their
coupons and then disappear, there being no studio to which a pur-
chaser of a coupon may go to complete the contract. Better Busi-
ness Bureaus have advocated an outright prohibition of this method
of sale, however the Code attempts to control and regulate this
method equitably (Article VIII, 2 (a), and the entire Schedule B).

Secondly, in many instances, the soliciting from house to house
method of sale, or the soliciting of business outside of the trading
area in which an owner has a permanent studio have at times de-
veloped into an unsatisfactory situation for the customer. The cus-
tomer has no definite means of gaining satisfaction since the so-called
itinerant photographer has no permanent studio. This method will
be controlled upon the approval of the Code. It is felt that methods
have developed within the Industry which have been unethical and
which have tended hitherto to create a loss of faith by the consuming
public in this business.

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 Xational 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 practice, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating industry.

(b) The Code complies in all respects with the pertinent provi-
sions of said Title of said Act, including without limitation Subsec-
tion (a) of Section 3, Subsection (a) of Section 7, and Subsection (b)
of Section 10 thereof ; and that the applicant associations are indus-
trial associations truly representative of the aforesaid Industry; and
that the said associations impose no inequitable restrictions on admis-
sion to membership therein.

(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 21, 1934.

CODE OF FAIR COMPETITION FOR THE PHOTO-
GRAPHIC AND PHOTO FINISHING INDUSTRY

Article I — Purpose

To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are hereby established as a
Code of Fair Competition for the Photographic and Photo Finish-
ing Industry and shall be binding upon every member thereof.

Article II — Definitions

1. The term " Photographic and Photo Finishing Industry " as
used herein includes the production and sale of photographic repro-
ductions and/or prints, plates, or packs, and/or the printing thereof
and such related branches or subdivisions as may from time to time
be included under the provisions of this Code. This term shall not
include blue-printing, photostating, X-raying, and motion pictures.
The three Divisions of this Industry are :

(a) Portrait photography, which includes the production and sale
of photographic reproductions of persons for other than commercial
or professional uses.

(b) Commercial photography, which includes the production and
sale of photographic reproductions of persons for commercial or
professional uses, properties, chattels, and documents.

(c) Photo finishing, which includes the development, and/or
printing or exposed photographic films, plates, or packs for a con-
sideration.

2. The term " employee " as used herein includes anyone engaged
in the Industry, however compensated, except anyone in so far as he
is acting as an employer. The term employee shall include any agent
or representative of any member of the Industry irrespective of the
nature of the agreement governing the relationship.

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

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

5. The term " trade area " as used herein means any area desig-
nated as a trade area by the Code Authority.

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

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

(453)

454

Article III — Hours

No cameraman or driver shall be permitted to work in excess of
forty-eight (48) hours in any one week provided, however, that the
minimum wages set forth in Article IV, Section 1, for a forty (40)
hour week, shall be proportionately increased so that the minimum
for these workers referred to herein shall be forty-eight (48) times
the proportionate hourly rate set forth in Article IV, Section 1,
Paragraph 1.

2. No watchman, member of the Industry working on his own
behalf, or employee engaged in a managerial capacity receiving
Thirty-five ($35.00) Dollars a week or more, shall be permitted to
work in excess of fifty-two (52) hours in any one (1) week.

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

4. In addition to the maximum hours hereinabove set forth, em-
ployees may be permitted to exceed said maximum by not more
than one hundred forty-four (144) hours in any one calendar year,
provided all such additional hours worked shall be compensated for
at no less than time and one-third.

5. No employer shall engage any employee for any time which
when totaled with that already performed with another employer
or employers exceeds the maximum herein permitted.

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

7. The Code Authority shall make a study of labor conditions
within the Industry to determine the feasibility of the adoption of
a shorter working week and adjustments in the rates of pay; and
shall, within three months after the effective date of this Code, make
a report of its findings to the Administrator.

Article IV — Wages

1. No employee in the Industry shall be paid at less than the rate
of Fifteen ($15.00) Dollars per week in cities of five hundred thou-
sand (500 000) population or more, and in the trading area of such
cities; Fourteen Dollars and Fifty Cents ($14.50) in cities of two
hundred fifty thousand (250,000) to five hundred thousand (500,000)
population, and in the trading areas of such cities; Fourteen
($14.00) Dollars in cities or places under two hundred fifty thousand
(250,000) population, and in the trading areas of such cities.

Except a messenger or an apprentice, who shall be paid not less
than Twelve ($12.00) Dollars per week, provided, however, that no
employee shall be classed as an apprentice who has worked for any
employer in the Photo Finishing Division for more than six (6)
weeks or for an}T employer in the other divisions of the Industry one
(1) year, and provided, further, that such class of apprentices shall
not exceed five per cent (5%) of the total number of employees of
any employer but any employer may have one apprentice.

(a) No period in excess of one (1) week shall be used as a basis
for payment of the minimum rates of pay herein prescribed.

2. This Article establishes a minimum rate of pay per week re-
gardless of Avhether an employee is compensated on a time rate, piece-
work, or other basis.

455

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

4. No employee shall be paid less often than twice a month and
shall be paid in cash or negotiable check.

5. In the Photo Finishing Division, the number of employees re-
ceiving the minimum wage provided in Section 1 of this Article shall
not exceed one (1) for each five (5) employees or fraction thereof
employed by each employer.

6. No employee whose full time weekly hours for the four (4)
weeks ended June 17, 1933, are reduced by the provisions of this
Code by twenty per cent (20%) or less shall have his or her full
time weekly earnings reduced. No employee whose said full time
weekly hours are reduced by the provisions of this Code in ex; ss
of twenty per cent (20%), shall have his or her said earnings reduced
by more than fifty per cent (50%) of the amount calculated by mul-
tiplying the reduction in hours in excess of twenty per cent (20%))
by the hourly rate.

7. The Code Authority shall present to the Administrator within
a period of sixty (60) days, a schedule of minimum wages to b3
paid skilled employees. The Administrator shall grant a hearing
to all interested parties and after approval by the Administrator
such schedule shall be binding upon the employers.

8. The employer shall make payment of all expenses incurred by
an employee while traveling.

Article V — General Labor Provisions

1. No person under sixteen (16) years of age shall be employed
in the Industry, nor any person 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 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, except
that persons under the age of sixteen (16) may be employed solely
as models, subject to local laws, and regulations of the Code
Authority.

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.

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.

456

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

6. Emplo}rers shall not reclassify employees or duties of such
occupations performed by employees so as k> defeat the purposes
of the Act.

7. Each employer shall post, in conspicuous places in his estab-
lishment accessible to employees, full copies of Articles III, IV and
V of this Code.

8. A manual for the Standards of Sanitation, Health and Safety,
shall be filed with the Administrator for approval within six (6)
months after the effective elate of this Code.

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

Article VI — Administration

ORGANIZATION, POWERS AND DUTIES OF THE CODE AUTHORITY

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

2. The Code Authority shall consist of fifteen (15) 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 additional members without
vote to represent such groups or governmental agencies as he may
designate.

(a) Each member of the Industry who qualifies as specified in
Section 5 of this Article shall have one (1) vote (such vote to be in
the Division in which he is principally engaged) in the nomination
and election of the Photographic Regional Board for the Region in
which his business is located. Each such Board shall have three (3)
members, one (1) from each of the three Divisions, as set forth in
Article II, Section 1 (a), (b), and (c). Regions are hereby estab-
lished as shown in Schedule A appended hereto, subject to revision
by the Code Authority as hereinafter provided. The members of
such Photographic Regional Boards shall constitute the National
Photographic Council, which Council shall elect the Industry mem-
bers of the Code Authority, and, in such elections, Council members
may vote for the representatives of their Division only.

(b) The Code Committee of the Industry shall arrange for the
nomination and election of the members of the National Photo-
graphic Council not later than May 15, 1934. The Code Authority
thus elected shall take office not later than June 1, 1934. In the
interim, the Code Committee of the Industry shall serve as the
Code Authority.

The term of office of the elected members of the Code Authority
shall be one (1) year commencing June 1, 1934.

(c) Membership in the Code Authority shall be equally divided
between the three (3) Divisions of the Industry, and no member
shall be eligible to represent a Division on the Code Authority
unless at least two-thirds (%) of the dollar volume of his business
is done in such Division.

457

(d) Each Division shall, in accordance with such regulations as
may be prescribed by the Administrator, have exclusive jurisdic-
tion with respect to matters and/or problems relating exclusively
to said Division and exclusive disposition of funds paid by mem-
bers of said Division for Code purposes.

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)
submit to the Administrator true copies of its Articles of Associa-
tion, By-Laws, regulations, and any amendments when made thereto,
together with such other information as to membership, organiza-
tion, and activities as the Administrator may deem necessary to
effectuate the purposes of the Act.

4. In order that the Code Authority shall at all times be truly
representative of the Industry and in other respects comply with
the provisions of the Act, the Administrator may provide such
hearings as he may deem proper, and thereafter if he shall find
that the Code Authority is not truly representative or does not in
other respects comply with the provisions of the Act, he 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, to partici-
pate in the selection of the members thereof and to use the N.R.A.
Code Insignia, only 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. The reasonable share of such expense shall be determined
by the Code Authority, subject to review by the Administrator, on
the basis of volume of business and/or such other factors as may
be deemed equitable to be taken into consideration.

6. Nothing contained in this Code shall constitute the members
of the Code Authority partners for any purpose. Nor shall any
member of the Code Authority be liable in any manner to anyone
for any act of any other member, officer, agent or employee of the
Code Authority. Nor shall any member of the Code Authority be
liable to anyone for any action or ommission to act under the Code,
except for his own willful misfeasance or non-feasance.

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

A. To adopt By-Laws and rules and regulations for its procedure
and to assist the Administrator in the administration and enforce-
ment of the Code, in accordance with the powers herein granted,
and to submit the same to the Administrator for his approval to-
gether 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.

B. To obtain from members of the Industry as soon as the neces-
sary readjustments within the Industry can be made, certified re-
ports on all matters pertinent to the provisions of this Code based
on periods of one (1), two (2), or four (4) weeks, or one month,
or multiples thereof, for use of the Code Authority and the Adminis-

48306° 425-136 34 2

458

trator in the administration and enforcement of the Code, and for
the information of the President. No individual reports shall be
disclosed to any other member of the Industry or to any other party
-except to such governmental agencies as may be directed by the
Administrator.

C. To give assistance to members of the Industry in improving
methods, or in prescribing a uniform system of accounting, costing,
and reporting.

D. To receive complaints of violations of this Code, make investi-
gations thereof, and bring to the attention of the Administrator,
recommendations and information relative thereto.

E. To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein and to pay such 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.

F. To coordinate the administration of this Code with such other
Codes, if any, as may be related to the Industry, or any subdivision
thereof, and to delegate to an}' other administrative authority, with
the approval of the Administrator, such powers as will promote joint
and harmonious action upon matters of common interest.

G. To secure an equitable and proportionate payment of the ex-
penses of maintaining the Code Authority and its activities from
members of the Industry.

H. To regulate the use of the N.R.A. Code Insignia.

I. To establish or designate an Agency on planning fair prac-
tices and Industry standards and nomenclature which shall coop-
erate with the Code Authority in developing fair inter and intra-
tracle practices and industrial planning, including the regularization
of employment in the Industry.

J. To initiate, consider and make recommendations for the modi-
fication or amendment of this Code after such notice and hearing
as may be prescribed by the Administrator. Such modification, if
approved by the Administrator, shall become effective as a part of
this Code and be binding upon every member of the Industry.

K. To define and determine from time to time the regions pro-
vided in Section 2 (a) of this Article, and to define and determine
the trade areas for cities in which members of the Industry are,
or shall be located, subject to the approval of the Administrator,
without regard to city, county, state or sectional lines.

L. To make a study of labor conditions within the Industry to
determine the feasibility of the adoption of a shorter working week,
and adjustments in the rates of pay; and shall, within three months
after the effective date of this Code, make a report of its findings
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 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

459

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.

x^RTICLE VII

In addition to information required to be submitted to any Code
Authority, all or any of the persons subject to such Code, agreement,
or license shall furnish such statistical information as the Admin-
istrator may deem necessary for the purposes recited in Section 3 (a)
of said Act to such Federal and State agencies as the Administrator
may designate ; nor shall anything in any Code, agreement, or license
relieve any person of any existing obligation to furnish reports to
Government agencies.

Article VIII — Trade Practices

1. The following practices, applicable to all Divisions, constitute
unfair methods of competition for members of the Industry and are
prohibited :

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

B. To mark or brand falsely any product of the Industry which
has the tendency to mislead or deceive customers or prospective cus-
tomers, whether as to the grade, quality, quantity, substance, char-
acter, nature, origin, size, finish, or preparation of any product of
the Industry or otherwise.

C. To make or cause or knowingly permit to be made or effected
any false, materially inaccurate, or deceptive statement by way of
advertisement or otherwise, whether concerning the grade, quality,
quantity, substance, character, nature, origin, size, finish, or prepa-
ration of any product of the Industry or the credit terms, values,
policies, or services of any member of the Industry, or otherwise,
having the tendency or capacity to mislead or deceive customers or
prospective customers, or to injure competitors.

D. To give, permit to be given, or directly offer to give, anything
of value for the purpose of influencing or rewarding the action of
any employee, agent or representative of another in relation to the
business of the employer of such employee, the principal of such
agent or the represented party, without the knowledge of such em-
ployer, principal or party. Commercial bribery provisions shall not
be construed to prohibit free and general distribution of articles com-
monly used for advertising except so far as such articles are actually
used for commercial bribery as hereinabove defined.

E. To induce or attempt to induce the breach of an existing oral
or written contract between a competitor and his customers, or
source of supply, or others or to interfere with or to obstruct the
performance of any such contractual duties or services.

F. To use the word " free " or any expression of like connotation
in conjunction with, or with reference to, the sale or offer for sale
of any Industry product or service.

G. To copy without the maker's permission, proofs which bear
the name of the maker when his establishment is still in existence.

460

H. To use any subterfuge to frustrate the spirit and intent of this
Code, which is, among other things, to increase employment by uni-
versal covenant, to remove obstructions to commerce, to shorten
hours of work and to raise wages to a living basis.

2. The following practices, applicable to the Portrait Photography
Division, constitute unfair methods of competition for members of
that Division, and are hereby prohibited :

A. To publish, circulate, or sell coupons, certificates or similar de-
vices to prospective customers with representations that they may be
applied in whole or in part on the purchase price of a portrait photo-
graph, except in accordance with the following regulations; but in
no event shall a member utilize the coupon or certificate or similar
method of sale outside the trading area of the city in which he main-
tains a permanent studio.

(1) A member desiring to sell his products in conjunction with
the use of coupons, certificates or other similar devices, shall file with
the Code Authority at least ten days prior to the commencement of
the use of such method, or if that be a continuous method, shall so
file within fifteen (15) days after the effective date of this Code, on
a form to be prescribed by the Code Authority, the information
required in Schedule B.

B. To sell or offer to sell Industry products or services outside the
trade area wherein is located a permanent studio and/or finishing plant
of the member selling or offering to sell such products or services, ex-
cept in accordance with regulations as prescribed from time to time
by the Code Authority, subject to the approval of the Administrator.

C. To subsidize secretly prominent persons for the purpose of
using their names and/or photographs for advertising or display
purposes.

D. To fail to disclose the name of the member actually selling and
producing portraits where such portraits are advertised and sold
through any intermediary not a member of the Industry, except
where there is a contract between such member and such interme-
diary which requires the latter to effect final disposition of any com-
plaint with regard to the member's products, services, or methods.
The Code Authority shall require such member to furnish evidence
of the existence of any such contract.

E. To advertise or otherwise publish the selling price of photo-
graphic portraits without stating whether or not such selling price
includes folders and/or mountings.

3. The following practices, applicable to the Photo Finishing Divi-
sion, constitute unfair methods of competition for members of that
Division and are prohibited:

A. To allow any credit on any photo-finishing product previously
sold for any reason other than the unsatisfactory nature of said
product.

B. To fail to affix on containers of Division products the N.R.A.
Code Insignia, when entitled to do so in accordance with the provi-
sions of this Code.

Article IX — Accounting and Selling

1. Within thirty (30) days after the effective date of this Code,
each member shall file with the Code Authority or regional boards

461

or otherwise, as prescribed by the Code Authority, copies of price
lists and schedules (including the true name and/or ownership of the
business filing such lists and schedules) covering all products or
services offered for sale by such members, which lists and schedules
shall include all the terms and conditions of sale, the list price and
trade discount applicable thereto for each kind and size of each
product or service sold or offered for sale, a complete and detailed
description of each product or service sold or offered for sale,
whether offered singly or in combination with other products or
services; complete details and, including differentials for grade, size
and quantity.

(a) The Code Authority shall prepare and compile, as soon as
practicable, a classification of those Industry products and services
not capable of being included in lists and schedules as hereinabove
provided. Upon its approval by the Code Authority, this classifica-
tion shall then be used by the Industry. It may be amended from
time to time by the Code Authority. With respect to the products
and services included in such classification, each member shall, within
thirty (30) days after its approval by the Code Authority, file, as
directed by the Code Authority, the basis upon which charges for
such products and services are computed.

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, 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.

3. Each member shall file, in accordance with regulations of the
Code Authority, ten days prior to the effective elate of any new
amended or revised prices or terms of conditions of sale, such new
list, amendment, or revision before making any quotations, of offer-
ing for sale in accordance therewith, except that the ten day period
herein provided may be shortened by the Code Authority, to afford
opportunity to meet a newly filed price list or schedule.1

4. Lists and schedules filed in accordance herewith shall be made
available to the Industry by the Code Authority.

5. All members of the Industry shall use, in connection with all
transactions of sale, an order, invoice, or acknowledgement form on
which shall be included specifications concerning terms and condi-
tions of sale, price, trade discounts, payment date, provisions gov-
erning delinquency, warrantees, guarantees, return or exchange of
Industry products, refunds for Industry services and other proper
conditions which shall be prescribed by the Code Authority with the
approval of the Administrator.

6. No member shall sell any of his products, nor render any serv-
ices on a basis at variance from the provisions of this Article except
in accordance with regulations that may be issued from time to time
by the Code Authority, provided, however, that a member may sell
at a lower price when necessary to meet competition, but at not less
than the lowest price not in violation of this Code offered by any
competitor.

1 See paragraph 2 of order approving this Code,

462

7. Terms of sale in the Commercial Photography and Photo Fin-
ishing Divisions shall not exceed thirty (30) days, end of month.

(a) In the Photo Finishing Division, trade and quantity discounts
shall not exceed the provisions of Schedule C hereof.

Article X

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, the Code Authority may cause to be
determined the lowest reasonable cost of the products of this Indus-
try, 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 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 Author-
ity, upon its own initiative or upon the request of any interested
party, shall cause the determination to be reviewed.

Article XI — Modification

1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of subsection (b) of Section 10 of the Xational Industrial
Recovery Act, from time to time, to cancel or modify any order,
approval, license, rule, or regulation issued until 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 approval thereof.

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

Article XII — Monopolies

Xo 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 XIII — Effective Date

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

Approved Code No. 362.
Registry No. 1650-17.

SCHEDULE A
Regions

1. Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut

2. New York — Trade area of New York City, within the State.

3. New York — other than number 2.

4. Pennsylvania — Eastern (all territory East of the Eastern boundary line of
the following counties — Potter, Clinton, Center, Mifflin, Juniata and Franklin).

5. Pennsylvania — Western (all territory West of the Eastern boundary line of
the following counties — Potter, Clinton, Center, Mifflin, Juniata and Franklin).

6. New Jersey.

7. Delaware, Maryland, District of Columbia.
7. Virginia, West Virginia.

9. North Carolina, South Carolina.

10. Florida, Georgia, Alabama.

11. Michigan.

12. Ohio.

13. Kentucky, Tennessee.

14. Indiana.

15. Wisconsin.

16. Illinois — Trade area of Chicago, within the State.

17. Illinois — other than No. 16.

18. Iowa.

19. Missouri.

20. Oklahoma, Arkansas.

21. Mississippi, Louisiana.

22. Texas.

23. Minnesota, North Dakota, South Dakota.

24. Kansas, Nebraska.

25. Montana, Wyoming, Idaho.

26. Colorado, Utah.

27. New Mexico, Nevada, Arizona.

28. Oregon, Washington.

29. California— North of Bakersfield.

30. California — South of, and including Bakersfield and the city limits.

(463)

SCHEDULE B

(a) Name and address of member issuing coupons, certificates or similar
devices.

(b) Name and address of each agent employed for such purpose by member.

(d) Copies of instructions issued to such agents, which instructions must
include a requirement that such agents furnish to the member detailed reports
of daily calls.

(e) A statement that all records concerning sale of coupons, certificates or
similar devices shall be kept in duplicate.

(f ) All coupons, certificates or other similar devices issued by members shall
be filed with the Code Authority and shall be subject to its approval in relation
to the provisions of this Code and must contain the following provisions :

(1) Precise description of photograph offered, whether mounted or unmounted,
and the price of the coupon, certificate or other similar device.

(2) The amount, if any to be paid by customer at studio, and if no addi-
tional amount to be paid, coupon, certificate or similar device to so state.

(3) Provisions for refund of amount paid by customer to agent.

(4) The period of time in which a sitting may be had should be indicated
by the agent on the coupon, certificate or similar device, at the time of sale
to customer, which period shall not exceed ten days beyond the date of the
sale.

(5) Provision for extension of such time only at request of customer.

(6) The period of time in which the finished photograph will be ready for
delivery, which period shall not exceed ten days after date of sitting.

(7) All coupons, certificates or similar devices shall bear the following:
"Any complaint concerning this transaction may be referred to the Code

Authority of the Photographic and Photo Finishing Industry ", together with
the address of the same.

(464)

SCHEDULE C

Basic trade discounts shall not exceed twenty-five per cent (25%) of list
price and. conditioned upon the payment of the account by the 15th of the
following month, quantity discounts shall not exceed :

5% additional on net volume when monthly gross volume exceeds $15.00.

10% additional on net volume when monthly gross volume exceeds $30.00.

15% additional on net volume when monthly gross volume exceeds $200.00.

20% additional on net volume when monthly gross volume exceeds $500.00.

For the purposes of this Schedule, each store outlet shall be regarded
separately.

(465)

Approved Code No. 363
CODE OF FAIR COMPETITION

FOR THE

MEN'S NECKWEAR INDUSTRY
As Approved on March 24, 1934

ORDER

Code of Fair Competition for the Men's Neckwear 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 Men's Neckwear 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-
rected to the President:

The schedule of minimum piece rate wages provided in Article
III shall be subject to further study both by this Administration and
by the Code Authorit}7 for the purpose of showing whether it is
fully in the public interest and in the interest of the industry and of
labor. To this end, the Code Authority shall report to the Adminis-
trator thereon within sixty days after the effective date hereof with
recommendations for the continuation, elimination, or modification
of any or all of such wage rates, and the Administrator reserves the
right upon the basis of such recommendations or upon the basis of
hearings if he shall prescribe them, or otherwise, to provide for
such modification or exception as he shall deem to be in the public
interest and in the interest of the industry and of labor.

Hugh S. Johnson,
Administrator for Industrial Recovery,

Approval recommended :
A. D. Whiteside,

Div is ion A dm inistrator .

Washington, D.C.,

March 24, 103 J^.

48726° 425-144 34 1 (437)

REPORT TO THE PRESIDENT

The President,

The White House.
Sir : This is a report of the Hearing on the Code of Fair Competi-
tion for the Men's Neckwear Industry conducted in Washington,
D.C., on August 31, 1933, and subsequent conferences held for the
purpose of obtaining a code for the Men's Neckwear Industry under
Title I of the National Industrial Recovery Act.

NATURE OF THE INDUSTRY

The manufacture of men's neckwear involves these principal op-
erations : cutting the fabrics, operating or sewing, turning and press-
ing. The cutter has ordinarily worked on a time-rate basis while
employees in the other classifications of work have been employed
on a piece-work basis. In past years there has been a decided
tendency away from the machine process and toward the employment
of the hand operator. Most of the ties now manufactured are sewn
by hand and to a large extent on a home work basis.

The years from 1929 to 1931 witnessed a decided improvement in
the quality of men's neckwear. Despite the tendency toward pro-
duction of handmade ties, the number produced in 1931 was only
about 13 per cent below the output of 1930. The value of total pro-
duction in 1931, however, was about 37 per cent below that of 1929.

Nearly 50 per cent of the production of this industry is still man-
ufactured in New York City and most of the concerns in that city
operate under a union agreement. In recent years, however, the
proportion of men's neckwear produced in New York has been
steadily declining. In 1929 the State of New York produced 65
per cent of the total value of production of four-in-hand ties as com-
pared with about 53 per cent in 1931. It is probable that this de-
cline has continued since 1931. The neckwear manufacturers out-
side of New York are small but are increasing in importance. Penn-
sylvania produced 6.5 per cent of the total value of neckwear pro-
duced in the United States in 1931 as compared with 3.5 per cent
of the total value in 1929. Similar gains occurred in Massachusetts,
Missouri, California, Illinois and Ohio.

The Manufacturing establishments in this industry are small and
competition is keen. In 1929 the industry was composed of 331 es-
tablishments employing an average of 26 workers each. By 1931
there were 368 establisnments employing an average of 22 workers
each. The average number of employees in the industry in 1929 was
8,565 as compared with 8,155 in 1931. This represents a relatively
slight decline. Nevertheless, the industry has a serious unemploy-
ment problem that is closely related to the decline in New York pro-
duction and the rise in production in other areas mentioned. Thus,

(468)

469

while there were only 410 fewer workers employed in the entire in-
dustry in 1931 as compared with 1929, a decline of 1,092 employed oc-
curred in New York State alone. Since there were 3,166 neckwear
workers employed in New York State in 1929, it appears that 25 per
cent of the New York neckwear workers had been displaced by 1931.
Unemployment thus represents a serious problem in the industry in
New York where a surplus labor supply exists and seasonal fluctua-
tions are apparently more pronounced than in other centers. It is
probable that there is relatively less unemployment in the smaller
and newer centers of neckwear manufacture where wages paid are
lower than in New York City.

The Code of Fair Competition for the Men's Neckwear Industry
as revised and approved may be summarized as follows:

Article I defines certain important terms used in the Code.

Article II prescribes the maximum hours of work for employees in
the industry.

Article III specifies minimum weekly and piece-rate wages and
conditions under which said wages are payable in the industry.

Article IV contains the general labor provisions.

Article Y constitutes the Code Authority for the industry and de-
fines its duties and powers.

Article VI prohibits certain unfair trade practices.

Article VII provides for the modification of the Code.

Article VIII states the purpose to prohibit use of the Code or any
provisions thereof to permit monopolies or monopolistic practices or
to eliminate, oppress or discriminate against small enterprises.

Article IX states the general policy that price increases shall be
limited as far as possible to actual increases in the seller's cost.

Article X designates the effective date of the Code.

wages

The proposed Code of this industry, as originally submitted, pro-
vided for occupational classifications of work and specified certain
minimum hourly rates applicable in each occupation. At the Public
Hearing, however, a large group of manufacturers withdrew their
assent to the proposed Code, and proposed considerably higher
minimum hourly rates which, they insisted, would make the Code
more equitable. At that time no serious objection was raised to
the principal of occupational classifications and the application of
minimum hourly wage rates to the different classes of work.

Members of the industry in New York City having themselves
collective agreements with labor insisted that the minimum hourly
rates demanded by manufacturers of men's neckwear located outside
of New York City were not high enough. Manufacturers outside of
New York maintained that the productivity of their employees was
below the average for the industry and therefore opposed the higher
rates demanded by the New York group. Definite data showing
relative productivity of employees in various producing areas was
not however presented. This difficult difference between manufac-
turers in the high wage and low wage areas delayed the development
of the Code for several months. Finally, through numerous and
prolonged conferences, substantial agreement between both groups

470

of manufacturers and a fairly unanimous assent to the Code was
obtained as the result of the adoption of the piece-work basis of
employment and the minimum rates specified in Article III of
this Code. The final working out of the minimum piece rate wages
in a manner which would be the most satisfactory to all members
of the industry and in a way to admit to some degree of flexibility,
represented the major objective of the final series of conferences.

Provision is made in Article III for changes in rates of pay by
the Code Authority subject to approval of the Administrator, and
for establishing rates of pay for work not provided for in the Code,
consistent nevertheless, with Code standards and subject to the Ad-
ministrator's approval. Provision is further made in Article III
giving effect to terms of collective agreements between employers and
employees entered into prior to the date of approval of the Code
unless changed by mutual agreement, in which event such change
may not result in wages lower than those prescribed in Article III
or in hours longer than those prescribed in Article II. With certain
exceptions, a minimum wage of thirteen dollars ($13.00) per week
is fixed for northern areas and twelve dollars ($12.00) per week for
southern areas. Cutters shall be paid at not less than the minimum
weekly rate of thirty-five dollars ($35.00).

HOURS

The unemployment problem in the men's neckwear industry in-
volves the absorption of displaced workers, a large number of whom
are in New York City. A need of equal importance is that of more
regular employment in the industry as a whole but this need is most
acute in New York City. Seasonal unemployment, however, is an
industry-wide problem. The thirty-six (36) hour work week pro-
vided for in the Code will have the effect of spreading and regulariz-
ing employment in the industry. It is important, however, to assure
" outside n production areas a sufficient work force to meet seasonal
demands.

Accordingly, the Code provides that not over four (4) hours over-
time above the thirty-six (36) hour week may be worked for not
more than eight (8) weeks in a six months' period in instances where
a manufacturer cannot supply his needs through hiring of unem-
ployed neckwear workers in his community. Such overtime is to be
paid for at regular piece-rates. The wage provisions in the Code
are a necessary corollary of the hours of work established.

Certain exceptions to the maximum thirty-six (36) hour work
week are made for outside sales forces, engineers, repair shop crews,
electricians, and other specified nonproductive employees.

HOME WORK

Considerable home work has existed in this industry. Members
of the industry were desirous of eliminating home work after a cer-
tain specified adjustment period, believing the elimination of home
work to be the first step in the effective enforcement of the labor
provisions of the Code. It is accordingly provided in Article IV
that no member of the industry shall give out work to be done in

471

homes on and after June 15, 1934. Adequate provision is made for
the control of homework prior to that date with a view to making
certain that immediate progress is made looking toward the even-
tual prohibition of homework.

CHILD LABOR

By Article IV of the Code, no person under sixteen (1G) years of
age may be employed in the industry and no person under eighteen
(18) years of age may be employed in dangerous or hazardous
occupations.

FINDINGS

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

I find that:

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

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

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

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

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

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

For these reasons this Code has been approved.
Respectfully,

Hugh S. Johnson,

Administrator.
March 24, 1934.

CODE OF FAIR COMPETITION FOR THE MEN'S
NECKWEAR INDUSTRY

Purposes. — To effect the policies of Title I of the National Indus-
trial Recovery Act, the following provisions are established as a
Code of Fair Competition for the Men's Neckwear Industry, and
shall be the standard of fair competition for such industry and shall
be binding upon every member thereof.

Article I — Definitions

1. The term " industry " as used herein includes the manufacture
and sale by the manufacturer, contractor or jobber of men's and
boys' neckwear (excluding knitted and leather ties).

2. The term " member of the industry " includes, but without
limitation, any individual, partnership, association, corporation, or
other person engaged in this industry, either as an employer or on
his own behalf.

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

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

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

6. The term " Southern Section of the United States " as used
herein shall include the States of Alabama. Arkansas, Florida,
Georgia. Louisiana, Mississippi, New Mexico. North Carolina. Okla-
homa, South Carolina. Tennessee. Texas and Virginia.

7. The term " manufacturer " as used herein includes, without
limitation thereto, all those who manufacture products in the indus-
tries from their own material, in a factory or establishment main-
tained and operated by them.

8. The term "jobber" as used herein includes without limitation
thereto all those for whom and/or under whose direction or orders
products in the industries are manufactured, in whole or in part,
by contractors and/or other manufacturers, and who also act as
wholesale distributors of such products.

9. The term " contractor " includes without limitation thereto,
all those who manufacture products in the industries from material
provided for them by manufacturers, jobbers, or others.

Article II — Hours

1. Except as hereinafter provided, no employee shall be permitted
to work in excess of thirty-six (36) hours in any one week, except

(472)

473

that employees may be permitted to work four (4) hours overtime
per week for a period not in excess of eight (8) weeks during each
six months period of each calendar year, wherever, a manufacturer
cannot supply his needs by employment of unemployed neckwear
workers in his community. Such six-months periods shall commence
on January 1 and July 1 of each calendar year.

All members of the industry who permit employees to work over-
time in accordance with the provisions of this Section shall immedi-
ately report to the Code Authority the number of workers so
employed and the factors that have made overtime employment
necessary.

2. The maximum hours fixed in the foregoing Section shall not
apply to outside sales forces, engineers, repair shop crews, elec-
tricians, firemen, watchmen, shipping help, janitors, charwomen,
scrub-women and others similarly employed, and outside crew
other than those engaged in manufacturing operations, provided,
that any employee as enumerated above who works in excess of
forty (40) hours in any one week shall be paid for such excess hours
at a rate equal to the normal hourly wage rate, based upon a forty
(40) hour week. The Code Authority shall within ninety (90)
days of the effective date, report to the Administrator with recom-
mendations concerning the maximum hours which should be worked
by any of the foregoing classes of employees, so that the Code
Authority may determine whether this provision shall be changed,
subject to the approval of the Administrator.

3. No office employee shall be permitted to work in excess of forty
(40) hours in any one week, except that such employees may be per-
mitted to work a maximum of five (5) hours overtime per week for
a period of not to exceed eight weeks during each six-months period
of each calendar year, and provided further that all such overtime
be paid for at the regular hourly rate. Such six-months periods
shall commence on January 1 and July 1 of each calendar year.

4. The maximum hours fixed in the foregoing Section shall not
apply to employees engaged in an executive or supervisory capacity,
nor to foremen not engaged in any productive operations when such
employees are earning $35.00 per week or more.

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

G. Any employer who does the work of an employee shall be sub-
ject to the provisions of this Code as to hours of labor.

Article III 1 — Wages

1. Except as hereinafter provided, no employee shall be paid at
less than the rate of $13.00 per week of thirty-six (36) hours. No
employee employed in the Southern Section of the United States
shall be paid at less than the rate of $12.00 per week for thirty-six
(36) hours.

1 See paragraph 3 of order approving this Code.
48726° 425-144 34 2

474

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

3. 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. 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.

4. Apprentices shall receive at least the regular piece work rates
provided for herein, provided, however, that all employees employed
as apprentices are paid at not less than the rate of Ten Dollars
($10.00) per week of thirty-six (36) hours; and provided, further,
that at no time shall the total number of apprentices in the employ
of any one employer exceed 10% of such employer's total number
of employees. The period of apprenticeship shall be strictly limited
to eight (8) weeks.

5. The following schedule of minimum piece rate wages shall be
standard for the industry and, except as hereinotherwise provided,
no member of the industry shall pay less than the following rates :

Hand-made ties, hemmed: Per dozen Machine-made margin 2-piece

Hemming $0. 13 shape — Continued Per dozen

Piecing . 03 Turning and pressing

Slip stitching .45 pockets $0,075

Piecing pressing . 03 Turning . 085

Pressing . 10 Pressing . 085

Hand-made ties, lined : Neck stitching . 0325

Sewing margin lining . 20 Machine-made unlined 2-piece

Piecing .03 shape:

Turning pockets . 04 Hemming . 0075

Pressing pockets . 04 Piecing . 0325

Slip stitching . 45 Running up . 075

Piece pressing . 03 Piecing pressing . 0275

Pressing .10 Turning .08

Machine-made pocket, lined: Pressing .08

Operating: Neck stitching .0325

Lining .01)75 French tie:

Piecing . 0325 Sewing points and piec- 1

Running up .0775 ing \ .10

Pocket turning . 0275 Running up with stay__. J

Pocket pressing . 0275 Turning . 05

Piecing pressing . 0275 Pressing . 05

Pressing . 08 Press joints and joinings. . 02

Turning . 08 General :

Machine-made margin 2-piece Wide hemming, one side_ . 0325

shape : Wide hemming, both

Piecing pressing . 0275 sides . 055

Sewing lining .1825 Tackers .0325

Piecing . 0325* Label sewers . 0425

Running up . 085

Where rates for operations or for styles not covered by the above
classifications, become necessary, the Code Authority, subject to the

475

approval of the Administrator, shall establish proper minimum rates
consistent with the above. Pending the adoption of piece rates for
styles not covered by this Code, members of the industry shall adopt
piece rates for the manufacture of such styles consistent with the
rates contained in this Code.

If the total direct labor cost to any member of the Industry for
the manufacture of each item under the provisions of this Code is
equal to, or greater than, the total direct labor cost, calculated in
accordance with the piece-work rates above indicated, for the opera-
tions actually performed by such member of the Industry on such
item, then such member shall be deemed to have complied with the
provisions of this Section.

6. No cutter shall be paid at less than the rate of thirty-five dollars
($35.00) per week.

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

8. (a) Where an employer is bound by the terms of a collective
agreement, concluded prior to the date of approval of this Code, to
pay other minimum or piece-rate wages higher than those set forth
in Article III, Section 1 to 6 inclusive, or to observe other hours
lower than those provided in Article II of this Code, nothing con-
tained in this Code shall be deemed to replace the terms of such
collective agreement, unless said agreement is changed by mutual
consent. In no case shall such changes result in wages lower than
those prescribed in Article III, Sections 1 to 6 inclusive, or in hours
longer than those prescribed in Article II.

(b) Any agreement between employers and employees made in
accordance with the National Industrial Recovery Act may fix other
wages and hours than those set forth in this Code, provided that
no such agreement may fix maximum hours in excess of those pro-
vided in this Code or minimum piece-rates and wages lower than
those provided in this Code.

None of the provisions of this Article shall be construed or ap-
plied in such manner that the minimum wages provided herein be-
come maximum wages, and the duties delegated to the Code Author-
ity shall include a report with respect to the question of whether
the minimum wages provided herein are in fact tending to become
maximum wages.

(c) In no case shall piece-rates and/or hour rates that were being
paid on October G, 1933, in excess of the minimum provided by this
Code be reduced, except upon mutual consent between the employer
and his employees, and the approval of the Administrator.

(d) In every neckwear plant in the industry the employer shall
post copies of Article III, Section 8 (c), together with the piece-
rates above the minimum piece-rates in the Code, prevailing in such
plant on October 6. 1933, and each employer shall also file with the
Code Authority an identical list of such piece-rates prevailing in
such employer's plant on October 6, 1933.

9. (a) Changes in the piece-rates or week work rates set forth in
Article III, Sections 1 to 6 inclusive, may be made upon the recom-
mendation of the Code Authority and approval of the Administrator
after such notice and hearing as he may prescribe.

476

(b) The Administrator, upon recornmen elation of the Code Au-
thority may, after such public notice and hearing as he may deem
necessary, approve other piece work rates, week work rates and/or
methods of compensation than contained in this Code for members of
the industry who can justify such action and establish that they will
not obtain an unfair competitive advantage thereby.

Article IV — General Labor Provisions

1. On and after June 15, 1934 no home wrork shall be permitted by
members of the Industry. Prior to that date no member of the
Industry shall: (1) Increase the number of home workers employed
b}7 him or make any replacements of home workers. (2) Fail to list
with thev Code Authority within ten (10) days after the effective
date, the names and addresses of ail home workers employed by him.
(3) Employ any home worker on a piece rate basis less than that
provided for in the Code for same or similar operations. (4) Issue
home work except directly to the individual who performs the pro-
ductive operations thereon.

2. 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 before June 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 b}7 the authority in such State empowered to issue employ-
ment or age certificates or permits, showing that the employee is of
the required age.

3. (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 collectively 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.

4. Every employer shall provide for the safety and health of his
employers at the place and during the hours of their employment.
Standards for safety and health shall be submitted by the Code
Authority to the Administrator within six (G) months after the
effective date of this Code.

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

477

6. 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 employees. Whenever any modi-
fications of, or exemption or exception from the Code permits any
person to pay lower wages, or work his employees longer hours, or
establish conditions 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 modifica-
tions, 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 pro-
visions, directions, modifications, exemptions or exceptions. Nothing
in this section shall be construed to relieve any member of the indus-
try from compliance with the requirements of Article III, Section 8
(d) hereof.

Article V — Organization, Powers and Duties of the Code

Authority

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

A. Nine (9) 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. One representative without vote to represent Labor to be ap-
pointed by the Administrator upon the nomination of the Labor
Advisory Board.

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

2. The industry members of the Code Authority shall be selected
as follows:

Four (4) of the members representing the Industry shall be
selected by the Men's Neckwear Manufacturers of New York City,
from among members of the Industry located in New York City;
and five (5) members shall be selected by members of the Industry
located outside of the city of New York. The nine (9) members of
the Industry so selected, and the method of their selection shall be
certified to the Administrator by the Men's Neckwear Institute of
America, Inc., as members of the Code Authority.

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

478

and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.

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

5. 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 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.

6. 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 rea-
sonable 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.

7. Nothing contained in this Code shall constitute the members of
the Code Authority partners for any purpose. Nor shall any mem-
ber of the Code Authority be liable in any manner to anyone for any
acts of any other member, officer, agent, or employee of the Code
Authority. Nor shall any member of the Code Authority be liable
to anyone for any action or omission to act under the Code, except
for his own wilful misfeasance or non-feasance.

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

(b) To obtain from members of the industry as soon as the
necessary readjustments within the industry can be made, reports
based on periods of one, two or four weeks, or multiples thereof, for
use of the Code Authority and the Administrator in the adminis-
tration and enforcement of the Code, and for the information of
the President, and to give assistance to members of the industry in
improving methods, or in adopting a uniform system of accounting

479

and reporting. All individual reports shall be kept confidential and
only general summaries thereof may be published.

(c) To receive complaints of violations of this Code, make inves-
tigations thereof, provide hearings thereon and adjust such com-
plaints, and bring to the attention of the Administrator for prose-
cution, recommendations, and information relative to unadjusted
violations. The application of this section shall at ail times be
subject to rules and regulations which may be issued 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
therein 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 coordinate the Administration of this Code with such
other Codes, if any, as may be related to the industry, or any sub-
division thereof, and to delegate to any other administrative author-
ity such power as will promote joint and harmonious action upon
matters of common interest.

(f) To secure an equitable and proportionate payment of the ex-
pense of maintaining the Code Authority and its activities from
those members of the industry who accept the benefits of the activ-
ities of the Code Authority or otherwise assent to this Code.

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

(h) To establish or designate an agency on planning and fair
practices which shall cooperate with the Code Authority m develop-
ing fair inter- and intra-trade practices and industrial planning,
including the regulation of employment and stabilization of em-
ployees for the industry.

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

(j) To designate three representatives, who, together with one
designated by the Labor Advisory Board to represent Labor, shall
constitute a rate committee, which committee shall report to the
Code Authority with respect to the provisions of Article III, Sec-
tion 5. Recommendations of such Rate Committee shall become
effective as a part of this Code upon the recommendation of the
Code Authority and the approval of the Administrator after such
notice and hearing as he may prescribe.

(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
and approved by the Administrator, 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.

9. In addition to the information required to be submitted to the
Code Authority as set forth in this Article, there shall be furnished

480

to government agencies such statistical information as the Admin-
istrator may deem necessary for the purpose recited in Section 3 (a)
of the National Industrial Kecovery Act. Nothing in this Code
shall relieve anyone of any existing obligation to furnish reports to
government agencies.

Article VI — Trade Practice Rules

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

1. (a) To induce a breach of contract or agreement between any
member of the industry and his customers or between any member
of the industry and any other person with respect to materials, pur-
chases or sales.

(b) To secure or attempt to secure, directly or indirectly, from
employees of a competitor information concerning exclusive methods
of operation, style, designs or patterns.

2. (a) To allow purchasers or offer or make any allowance to any
purchaser of any secret commission, bonus, rebate, refund, credit, un-
earned discount, or subsidy of any kind, whether in the form of
money, services, advertising allowances or any other thing of value ;
or the giving of premiums, except such articles as are commonly
used for advertising purposes.

(b) To give, permit to be given or offer to give, anything of value
for the purpose of influencing or rewarding the action of an 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 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. (a) To sell irregulars or seconds as firsts with the intent or
effect of deceiving the purchaser or the ultimate consumer.

(b) To fail to place on neckwear not of first quality such markings
as may be directed by the Code Authority indicating such neckwear
as either " irregular " or " seconds " on some portion of the neckwear
where it can be seen by a purchaser.

(c) To ship or deliver neckwear which does not substantially con-
form in quality and value with the sample submitted, or representa-
tion made prior to the securing of the order without the knowledge
or consent of the purchaser to such substitutions.

(d) To sell neckwear marked or branded falsely with the effect of
misleading or deceiving purchasers or the ultimate consumer with
respect to price, quality, quantity, grade, substance, origin or value
of merchandise.

(e) To designate material or content on any neckwear unless it
represents a substantial portion of the fabric of such neckwear.

4. To loan or send on memorandum any display strips.

5. (a) To imitate trade-marks, trade-names, slogans, or other
marks of identification of competitors, having a tendency to mislead
or deceive the ultimate consumer.

(b) To misrepresent facts with respect to a competitor or his prod-
uct in any material respect.

481

6. To guarantee purchasers against loss resulting from price de-
clines.

7. To accept the return of neckwear from any purchaser on the
ground of faded color or for any other reason as to quality, design, or
style except in instances of factory imperfection or defects or non-
compliance with the terms of the order.

8. To grant cash discounts in excess of 7/10 e.o.m. or 6/10/60 to any
customer.

9. To withhold from or insert in any quotation or invoice any state-
ment that makes it inaccurate in any material particular.

10. To give to any customer any product as a premium for the pur-
chase of products of this Industry, except as provided in Sections
2 (a) and 2 (b) of this Article.

11. (a) To accept orders which do not contain a final delivery date
which shall be within nine (9) months of the date of the order.

(b) The Code Authority shall initiate investigations and confer-
ences with a view to making recommendations to the Administrator
respecting a uniform sales contract.

12. To sell goods on other terms than f .o.b. city of origin. Delivery
charges prepaid by the manufacturer shall be added to the cost of the
goods to the buyer in the invoice. Nothing in this provision shall
prevent free local deliveries.

13. To ship goods on consignment, memorandum or guaranteed
sale, except under circumstances to be defined by the Code Authority
where peculiar circumstances of Trade require the practice.

14. To sell1 any merchandise below his own individual cost. How-
ever, any member may meet the price competition of anyone whose
costs under the provisions of this Code are lower. For the purposes
of this provision, cost shall be determined in accordance with the
principles enumerated in such cost accounting system as is adopted
by the Code Authority pursuant to Article V, Section 8 (k) hereof.

(b) Defective goods known in the trade as " irregulars ", " im-
perfects " or " seconds " may be sold at less than cost, provided,
however, that such merchandise when sold shall be plainly and
visibly marked on each necktie and invoice.

(c) Goods discontinued from the line of the respective member
of the industry, and therefore no longer manufactured by such mem-
ber, may be sold at less than cost, provided that such goods are clearly
designated as " closeouts " in the sale and invoicing thereof.

(d) The Code Authority shall submit to the Administrator within
six (6) months after the effective date of this Code, a plan for regu-
lating the disposal of distress merchandise in a way to secure the
protection of members of the industry and to promote sound and
stable conditions in the industry. Such recommendations, upon
the approval of the Administrator after such notice and hearing
as he may prescribe, shall become a part of this Code and be bind-
ing on all the members thereof.

Article VII — Modification

482

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

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

Article VIII — Monopolies, Etc.

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

Article IX — Price Increases

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

Article X — Effective Date

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

Approved Code No. 363.
Registry No. 24&-1-G2.

Approved Code No. 364
CODE OF FAIR COMPETITION

FOR THE

CLAY DRAIN TILE MANUFACTURING INDUSTRY

As Approved on March 24, 1934

ORDER

Approving Code of Fair Competition for the Clay Drain Tile
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 Clay Drain Tile 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 :

Hugh S. Johnson,
Administrator for Industrial Recovery.
Approval recommended :
A. R. Glancy,

Division Administrator.

Washington, D.C.,

March 24, 193^.

48729°- 425-142 34 (483)

REPORT TO THE PRESIDENT

The President,

The White House.
Sir : This is a report on the Code of Fair Competition for the Clay
Drain Tile Manufacturing Industry, a hearing on which was con-
ducted in Washington on the fourth of January 1934 in accordance
with the provisions of the National Industrial Recovery Act.

HOURS

This Code provides that no employee shall be permitted to work
in excess of an average of forty (40) hours per week over any six (6)
month period, nor in excess of forty-eight (48) hours in any week,
nor in excess of eight (8) hours in any day, except the following:

(a) Managers, executives and technical employees, receiving
thirty-five ($35.00) dollars or more per week, and commercial
traveling salesmen;

(b) Office employees who may not work in excess of forty (40)
hours in any week;

(d) Truck drivers, who may not work in excess of an average of
forty (40) hours per week over any four. (4) week period nor in
excess of fort}' -eight (48) hours in any week;

(e) Employees directly engaged in the continuous drying and
burning processes, who may work not in excess of forty-eight (48)
hours in any week nor eight (8) hours in any day;

(f ) Kiln setters and kiln drawers, who may work not in excess of
an average of forty (40) hours per week over a six (6) month period
nor forty-eight (48) hours in any week, provided that one and one-
third times the normal rate be paid for time worked in excess of
forty (40) hours in any week.

(g) Employees engaged in emergency repairs, who may work not
in excess of an average of forty (40) hours over any six (6) month
period, provided that one and one-third times the normal rate be paid
for time worked in excess of forty (40) hours in any week.

WAGES

The Code provides for minimum rates of pay of 35 cents per hour
in the North and 30 cents, 27 cents, 25 cents and 24 cents per hour in
each of four southern zones, the southern rates and zones conform-
ing to those provided for in the Code for the Structural Clay Prod-
ucts Manufacturing Industry. It provides for minimum rates of
pay for accounting, clerical and office employees of from $16 per
week to $14 per week, depending upon the size of the city, in the

(484)

485

immediate trade area of which they are employed, and for minimum
rates of pay of $15 per week for watchmen. It provides for the
increase of wages above the minimum, to preserve equitable differ-
entials, and for report to the Code Authority of action taken with
reference to these adjustments.

ECONOMIC EFFECT OF THE CODE

Approximately 95% of the product of this industry is sold to the
farmer and approximately 84% of it is produced and sold in the
States of Ohio, Illinois, Indiana, Michigan and Iowa. Because of
the very low purchasing power of the farmer, particularly in this
section, the industry finds itself in a desperate condition. Sales have
dropped about 83% in volume and 85% in value since the year 1929.
A large percentage of the industry is bankrupt.

Employment has already been spread, in this industry, to the point
where average time worked has been reduced to 12 hours per week
and average weekly earnings to $2.40. In the face of an 83% de-
cline in production, the number of employees has decreased but 25%,
from 3,000 in 1929 to 2.650 in 1933. Obviously, the application of
the Code will not increase employment. It will, however, tend to
shorten the long idle periods between periods of operation.

The average minimum wage rates provided for in the Code are
75% higher than the average minimum wage rates now in effect and
are higher than those in effect in 1929. It is only by means of a
substantial increase in farm purchasing power that the industry will
be enabled to carry this additional burden.

FINDINGS

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

I find that :

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

486

tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant asso-
ciation is an industrial association truly representative of the afore-
said industry, and that said association imposes no inequitable re-
strictions on admission to membership therein.

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

(e) The Code is not designed to and will not eliminate or oppress
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 24, 1934.

CODE OF FAIR COMPETITION FOR THE CLAY DRAIN
TILE 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 Clay Drain Tile Manufacturing Indus-
try, and shall be the standard of fair competition for such industry
and shall be binding upon every member thereof.

Article II — Definitions

Section 1. The terms " Clay Drain Tile Manufacturing Indus-
try ", or " the industry ", as used herein means and includes the
manufacture for sale of drain tile, excluding, however, salt glazed
clay drain tile fabricated in vitrified clay sewer pipe plants by
such manufacturers thereof as have not, pursuant to the provisions
of the Code of Fair Competition for the Vitrified Clay Sewer Pipe
Manufacturing Industry, elected to operate under this Code in re-
spect to the salt glazed clay drain tile so fabricated.

Section 2. The term " drain tile " as used herein means a hollow
cylinder of burned clay with straight ends without bell, and used for
under-drainage of land.

Section 3. The term " employee " as used herein includes anyone
engaged in the industry in any capacity however compensated,
except a member of the industry.

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

Section 5. The term " member of the industry " includes anyone
engaged in the industry as above defined, either as an employer or on
his own behalf.

Section 6. The term " plant " as used herein means an establish-
ment engaged in the manufacture of drain tile.

Section 7. The terms " President ", "Act ", and "Administrator ",
as used herein shall mean, respectively, the President of the United
States, Title I of the National Industrial Recovery Act, and the
Administrator for Industrial Recovery.

Section 8. The term " Code Committee " as used herein means
the committee appointed by the members of the industry to present
this Code.

Section 9. Population for the purpose of this Code shall be deter-
mined by reference to the latest Federal Census.

Article III — Hours

Section 1. No employer shall cause or permit any employee to
work in excess of an average of forty (40) hours per week over any
six month period, nor in excess of eight (8) hours in any day, nor in
excess of forty-eight (48) hours in any week, except that:

(a) Any employee may be permitted to work in any day or week
in excess of the maximum hours above provided in the case of emer-

(487)

488

gencies requiring protection of life or property, or involving the
repair of production facilities, provided that the total hours worked
shall not average more than 40 hours per week over any six-month
period, and provided further that in any such special cases at least
one and one-third times the normal rate shall be paid for time worked
in excess of forty (40) hours in any week;

(b) Any employee directly engaged in the continuous drying and
burning processes of the products of this industry may be permitted
to work regularly not in excess of forty-eight (48) hours in any week
or eight (8) hours in any day;

(c) Kiln setters and kiln drawers may be permitted to work not
in excess of an average of forty (40) hours per week over any six
month period, nor in excess of forty-eight hours in any week, pro-
vided that at least one and one-third times the normal rate shall be
paid for all time worked in excess of forty (40) hours in any week;

(d) Truck drivers may be permitted to work not in excess of an
average of forty (40) hours per week over any four week period,
nor in excess of forty-eight (48) hours in any week;

(e) Employees regularly receiving thirty-five dollars ($35.00) or
more per week who are engaged in technical work or in managerial,
executive or supervisory capacities, and commercial traveling sales-
men, shall not be subject to the limitations of this Article;

(f ) Watchmen may be permitted to work not in excess of fifty-six
(56) hours in any week;

(g) Accounting, clerical, office, service, or sales employees (except
commercial traveling salesmen) may be permitted to work not in
excess of forty (40) hours in any week.

Section 2. No employer shall knowingly permit any employee to
work for any time which when totaled with that already performed
for another employer or employers exceeds the maximum hours
permitted herein.

Article IV — Wages

Section 1. No employee, excluding the classes of emploj^ees de-
scribed in Sections 2, 3 and 4 of this Article, shall be paid less than
at the rate of thirty-five cents (350) per hour, provided, however,
that :

(a) In Arizona, Arkansas, Kentucky, New Mexico, Oklahoma,
and Virginia Avith the exception of the counties of Arlington, Fair-
fax, Loudoun, Clarke and Frederick, such minimum rate shall be
thirty (30) cents per hour;

(b) In North Carolina, such minimum rate shall be twenty-seven
cents (27^) per hour;

(d) In Alabama, Florida, Georgia, Louisiana, Mississippi, South
Carolina and Texas such minimum rate shall be twenty-four cents
(240) per hour.

Section 2. Accounting, clerical, or office employees shall not be
paid less than at the rate of $16.00 per week, in any city of 500,000
population or over, or in the immediate trade area of such city;
and not less than at the rate of $15.50 per week in any city between
100,000 and 500,000 population, or in the immediate trade area of
such city; and not less than at the rate of $15.00 per week in any

489

city between 10,000 and 100,000 population, or in the immediate
trade area of such city; and not less than at the rate of $14.00 per
week in any other place.

Section 3. Watchmen shall be paid not less than $15.00 per week.

Section 4. A person whose earning capacity is limited because
of age or physical 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 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.

Section 5. This article establishes a minimum rate of pay, regard-
less of whether an employee is compensated on a time-rate, piece-
work, or other basis.

Section 6. Wages above the minimum shall not be decreased, and
rates of pay in excess of the minimum rate herein provided shall
be increased to preserve equitable differentials, and members of the
industry shall report to the Code Authority the action taken by
them in pursuance of this provision.

Section 7. Female employees performing substantially the same
work as male employees shall receive the same rates of pay as such
male employees.

Section 8. An employer shall make payment of all wages due
in lawful currency, or by negotiable check therefor payable on de-
mand. Wages shall be exempt from any payments for pensions, in-
surance, or sick benefits other than those voluntarily authorized by
the employee or required by law. Wages shall be payable at least
semi-monthly and salaries at least monthly.

Article V — General Labor Provisions

Section 1. No person under sixteen years of age shall be employed
in the industry, nor any one under eighteen years of age at opera-
tions or occupations hazardous in nature or detrimental to health.
Each member of the industry shall submit to the Code Authority
within sixty (CO) days after the effective date, a list of such opera-
tions or occupations. In any State an employer shall be deemed
to have complied with the provisions of this paragraph 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 per-
mits showing that the employee is of the required age.

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 organiza-
tion of his own choosing.

490

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. Xo provision of this Code shall supersede any state
or federal law imposing more stringent requirements on any em-
ployer, regulating the age of employees, wages, hours of work, or
health, fire protection, or general working conditions, than under
this Code.

Section 6. Employers shall not reclassify employees or duties of
occupations performed by employees or engage in any other subter-
fuge in order to defeat the purposes of this Code or of the Act.

Section 7. Each emplo}Ter shall post in conspicuous places easily
accessible to employees full copies of this Code.

Section 8. Every employer shall make reasonable provision for
the safety and health of his emplo}Tees 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.

Article VI — Administration

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

Section 1. For a period not to exceed thirty days after the effective
date hereof the Code Committee shall constitute a temporary Code
Authority until the Code Authority is elected.

Section 2. The Code Authority shall consist of one representa-
tive from each of the regions established in Section 5 hereof, or as
may be hereafter established, to be elected by a majority vote of the
members of the industry located in the respective regions, and one
member to be elected from the industry at large, by the members
elected from the said regions, to serve for a period of one year.

In addition to the membership above provided, the Administrator
may appoint not more than three additional members, without vote,
to serve for a period of one year from the date of appointment.

Section 3. In the event of any vacancy in the voting membership
of the Code Authority, the remaining members may designate a mem-
ber (from the region to be represented if the vacancy is that of a
regional member) to serve temporarily until such vacancy shall have
been filled, in the manner provided in Section 2 of this Article for
the original selection of such "member, by a special or regular elec-
tion.

Section 4. For the purpose of the election of the Code Authority
the temporary Code Authority shall call a meeting of the members
of the industry in each region, as established in Section 5 hereof, upon
ten days' notice sent by registered mail to all members of the indus-
try in the respective regions, who may vote in person or by proxy.

At these meetings the members of the industry shall elect the re-
gional Code Committees, as provided in Section 7 hereof.

Section 5. The industry shall be divided into the following re-
gions and such regions shall be, within the limitations hereinafter
provided, independent and self-governing in respect to the admin-
istration and enforcement of this Code within such regions :

491

Region No. 1. States of Ohio and Michigan;

Region No. 2. States of Indiana and Kentucky ;

Region No. 3. States of Illinois and Wisconsin;

Region No. 4. All States West of Mississippi River, except those
included in Region No. 5 ;

Region No. 5. States of Washington, Oregon, California, Idaho,
Nevada and Arizona ;

Region No. 6. All States East of the Mississippi except those in-
cluded in Regions Nos. 1, 2, and 3.

Section 6. Subject to the approval of the Administrator, the Code
Authority may establish regions in addition to those hereinabove
established and may revise the regions from time to time established
hereunder with the consent of a majority of the members of the
industry located in any such revised region or regions.

Section 7. The members of the industry located in each region
shallj at the meeting called by the temporary Code Authority, as
provided in Section 4 hereof, elect a regional committee of five (5)
members to serve for one year within such region as above provided,
and such regional committee shall have the following powers and
duties :

(a) To adopt by-laws and rules and regulations for its procedure
in the administration and enforcement of the Code in accordance
with the powers herein granted, and to delegate to agencies and
representatives such of its powers and duties as it may deem proper,
provided that nothing herein shall relieve it of its duties and respon-
sibilities, and that such agencies or representatives shall at all times
be subject to and comply with the provisions of this Code ;

(b) Under such rules and regulations as may be prescribed by the
Administrator, (1) to receive complaints of violations of the Code
against members of the industry within its region, (2) to make
investigations thereof and to seek adjustments of such complaints;
and (3 J to bring to the attention of the Code Authority, recom-
mendations and information relative to unadjusted violations;

(c) To make recommendations to the Code Authority concerning
the operation and functioning of this Code within its region ;

(d) To cooperate with and aid the Code Authority in the collec-
tion of reports and assessments for administration expenses and in
effectuating the other powers and duties conferred upon the Code
Authority.

Section 8. The Code Authority shall have the following powers
and duties, in addition to those elsewhere provided herein;

(a) To adopt by-laws and rules and regulations for its procedure
in the administration and enforcement of the Code in accordance
with the powers herein granted ;

(b) To obtain from members of the industry for its use and that
of the Administrator such reports as may be required under the Act
for the effective administration and enforcement of the Code; all
individual reports, data and information obtained from members
of the industry pursuant to this Code, however, shall be kept confi-
dential and unless the Administrator shall otherwise require, only
general summaries thereof may be published ;

(c) Under such rules and regulations as may be prescribed by the
Administrator, to receive complaints of violations of the Code from

492

the Regional Committees and to make investigations thereof and
seek adjustments of such complaints in accordance with the require-
ments of this Code, and to bring to the attention of the Adminis-
trator recommendations and information relative to unadjusted
violations ;

(d) To use such trade associations, Regional Committees and
other agencies and to delegate to them such of its powers and duties,
as it deems proper for the carrying out of any of its activities pro-
vided herein, provided that nothing herein shall relieve the Code
Authority of its duties or responsibilities under this Code and that
such associations, regional committees and other Agencies shall at
all times be subject to and comply with the provisions of this Code ;

(e) To coordinate the administration of this Code with such other
codes as may be relative hereto or any sub-division hereof and to
delegate to any other administrative authority, with the approval
of the Administrator, such powers as will promote joint and
harmonious action upon matters of common interest ;

(f) To hear and to seek to adjust controversies between or
affecting two or more Regional Committees ;

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

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

Section 9. 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 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 10. In order that the Code Authority and the Regional
Committees 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 or any such
Regional Committee is not truly representative or does not in other
respects comply with the provisions of the Act, may require an ap-
propriate modification in the method of selection of the Code
Authority or any such Regional Committee.

Section 11. Members of the Industry shall be entitled to partici-
pate in and share the benefits of the activities of the Code Authority
and the Regional Committees and to participate in the selection of
the members thereof by assenting to and complying with the require-
ments of this Code and sustaining their reasonable share of the
expenses of its administration. Such reasonable share of the
expenses of administration shall be determined by the Code Author-
ity, subject to review by the Administrator, on the basis of volume
of business and/or such other factors as may be deemed equitable.

Section 12. In addition to the information required to be sub-
mitted to the Code Authority, there shall be furnished to State
and Federal government agencies such statistical information as
the Administrator may deem necessary for the purposes recited in

493

Section 3 (a) of the Act, and nothing contained herein shall relieve
any member of the industry of any existing obligation to furnish
reports to government agencies.

Section 13. 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.

Section 14. Nothing contained in this Code shall constitute the
members of the Code Authority or the Regional Committees part-
ners for any purpose. Nor shall any member of the Code Authority
or any Regional 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 Regional Committee. Nor shall any member of
the Code Authority be liable to anyone for any action or omission
to act under the Code, except for his own willful misfeasance or
non-feasance.

Article VII — Accounting, Price Publication and Production

Section 1. Accounting and Costing. — 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.

Upon the approval of such system or method by the Adminis-
trator, no member of the industry shall sell any product of the
industry below his individual cost thereof, determined pursuant to
the principles of such approved system or method; except

(a) to meet the competitive price of a product of this industry of
similar grade and quality (by publication where required by a price
publication system adopted pursuant to the provisions of Section 2
of this Article) ; and except

(b) to meet (without price publication) the competitive price of a
product of another industry in actual competition with such member's
product provided such action be reported within five (5) days after
the quotation is made to the Regional Committee of the region into
which delivery is to be made ; and except

(c) to dispose of obsolete or below-grade products, upon making,
within five days after sale, a detailed report to the Regional Com-
mittee for the region within which delivery is to be made describing
the quantities and grades of such products disposed of and the price
or prices secured therefor; and except

(d) under such other circumstances or conditions as the appro-
priate Regional Committee may determine justice requires, provided
that such determination of the Regional Committee shall apply to
all members of the industry within the region under similar condi-
tions or circumstances.

494

Section 2. Price Publication. — (a) Any Regional Committee may,
if it so determines, require that each member of the industry within
its region shall file with the Committee's Secretary a net price list
and/or a price list and discount sheet individually prepared by him
showing his current prices and/or prices and discounts, and his
terms and conditions of sale, including all special discounts, freight
allowances, and terms of payment. Within ten (10) days after
notice of such determination, each such member of the industry shall
comply therewith. The Secretary shall immediately send copies
thereof, and of any revisions therein filed as hereinafter provided, to
all other interested members of the industry, and all such lists and
revisions so filed shall be available to and subject at all times to the
inspection of purchasers and prospective purchasers.

(b) Each member of the industry shall be free to change his pub-
lished prices, discounts or terms and conditions of sale from time to
time, but he shall file such new, amended or revised prices, discounts
or terms and conditions of sale with the Regional Committee of his
region to become effective five (5) days after filing thereof, except
that in order to meet the revisions of another member of the indus-
try, any member may file appropriate revisions to become effective
upon the effective date of such other member's revisions, or, if such
other member's revisions have already become effective, to become
effective immediately. All such revisions shall be deemed to be filed
with Regional Committees, as hereinabove provided, when an ac-
knowledgment by wire or by mail shall have been issued by the
Secretary of such Regional Committee, who shall issue such acknowl-
edgment immediately upon receipt of any price list.

(c) Except as otherwise in this Section provided, no member of
the industry shall sell directly or indirectly, through an affiliated
company or otherwise, by any means whatever any products of the
industry at a price lower, or at discounts greater, or on more favor-
able terms and conditions than those provided in his current net
prices and/or price lists and discount sheets, so filed as aforesaid.
Any member or the industry may deviate from his published prices,
discounts or terms and conditions of sale when bidding in competition
with the products of another industry, but any such deviation shall
be reported forthwith to the Regional Committee for the region into
which delivery is to be made. An " affiliated company ", for the pur-
pose of this Section mqans a company the majority of whose voting
stock is owned or controlled directly or through any intermediate
agency, by a member of the industry.

(d) A member of the industry, located in a region for which a
price publication plan shall not have been adopted pursuant hereto,
shall not sell any industry product for delivery in any other region,
in which such a plan shall have been adopted, at a net delivered
price lower than the lowest net price published in that region, except
by complying with the price publication plan adopted for such other
region.1

Section 3. Production. — The present kiln capacity of the industry
shall be registered by the members of the industry with the Code
Authority. The intention of persons engaged or engaging in the
industry to install additional kiln capacity, excepting, however, mod-

1 See paragraph 2 of order approving this Code.

495

ernization or replacement of existing capacity, or to devote to the
manufacture of drain tile, kilns not used for such purpose during
the four year period ending February 1, 1934, shall be reported to
the Code Authority. The Code Authority shall make such recom-
mendations with respect thereto to the Administrator as it may deem
desirable to effectuate the policy of the Act.

Article VIII — Trade Practices

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

Section 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.

Section 2. Misrepresentation or False or Misleading Advertis-
ing.— Making or causing or knowingly permitting to be made or
published any statement or representation by way of advertisement
or otherwise which is false, inaccurate or deceptive in any material
particular, 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 capac-
ity to mislead or deceive customers or prospective customers.

Section 3. Commercial Bribery. — Giving, permitting to be given,
or directly offering to give, anything of value for the purpose of in-
fluencing or rewarding the action of any employee, agent, or repre-
sentative of another in relation to the business of the employer of
such employee, the principal of such agent or the represented party,
without the knowledge of such employer, principal or party. This
provision shall not be construed to prohibit free and genera! distri-
bution of articles commonly used for advertising except so far as such
articles are actually used for commercial bribery as hereinabove
defined.

Section 5. Secret Rebates. — The secret payment or. allowance of
rebates, refunds, credits, or unearned commissions or 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. •

Section 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 thereof, by any scheme which involves
bribery, misrepresentation, or fraud.

Section 7. Defamation. — The defamation of competitors by falsely
imputing to them dishonorable conduct, inability to perform con-
tracts, questionable credit standing, or by other false representations
or by the false disparagement of the grade or quality of their goods.

498

Section 8. Threats of Litigations. — The publishing or circularizing
of threats or suits for infringement of patents or trade marks or of
any other legal proceedings not in good faith, with the tendency or
effect of harassing competitors or intimidating their customers.

Section 9. Espionage of Competitors. — Securing confidential in-
formation concerning the business of a competitor by a false or mis-
leading statement or representation, by a false impersonation of one
m authority, by bribery, or by any other unfair method.

Section 10. Acceptance of Securities. — Accepting securities except
at current marketable cash value, in payment for drain tile.

Section 11. Other Unfair Practices. — Nothing in this Code shall
limit the effect of any adjudication by the Courts or holding by the
Federal Trade Commission on complaint, finding, and order, that
any practice or method is unfair, providing that such adjudication
or holding is not inconsistent with any provisions of the Act or this
Code.

Article IX — Modification

Section 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the National 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 modifications to be based upon application to the
Administrator by the Code Authority and, after such notice and
hearing as he shall specify, shall become effective as a part of this
Code on his approval thereof.

Article X — Monopolies, Etc.

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

Article XI — Price Increases

Whereas the policy of the Act to increase 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 (10th) day after its
approval pursuant to the Act.

Approved Code No. 364.
Registry No. 1012-04.

Approved Code No. 365
CODE OF FAIR COMPETITION

FOR THE

SAND-LIME BRICK INDUSTRY

As Approved on March 26, 1934

ORDER

Approving Code or Fair Competition for the Sand-Lime Brick

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 Sand-Lime Brick 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 :

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
A. R. Glancy,

Division Administrator.

Washington, D.C.,

March 26, 195 %.

49063° 425-156 34 (497)

REPORT TO THE PRESIDENT

The President,

The White IIoa.se.
Sir: This is a report on the Code of Fair Competition for the
Sand Lime Brick Industry, a hearing on which was conducted in
Washington on the eighth of February, 1934. in accordance with the
provisions of the National Industrial Recovery Act.

PROVISIONS OF THE CODE AS TO WAGES AND HOURS

This Code provides that no employee shall be permitted to work
in excess of forty hours in any one week, nor more than eight hours
in any oik1 day. nor more than six days in any one week. Limita-
tions on working time do not apply to salesmen nor to managers or
executives who earn not less than $35.00 per week in the North, less
than $30.00 per week in the South. Exceptions are provided for em-
ployees engaged on emergency maintenance or emergency repair
work: such employees when so engaged being allowed to work in
excess of the basic maximums provided overtime is paid at the rate
of one and one-third the normal rate for all hours worked in excess
of 8 per day and 40 per week. Exceptions are provided for em-
ployees at plants subject to unfavorable weather conditions, affected
employees being permitted to work as much as 48 hours in an}7 one
week, but not more than 40 hours per week as averaged over any 4
week period. A tolerance is granted for foremen, who may work
15% longer hours than the 8 and 40 hour maximums provided.
Watchmen are not subject to the basic limitations, but are not per-
mitted to work more than 56 hours in any one week. Tolerance is
provided for employee- necessary for the closing of hardening
cylinders.

* The Code provides for minimum hourly rates of pay of 40c* in the
North, 35c in Southern California, 30c1 in the intermediate zone, and
25# in the South; this minimum wage provision applying only to
common or totally unskilled labor. A provision is made for an equi-
table adjustment of wages above the minimum. Clerical and office
employees are to be paid not less than $13.00, $14.00, or $15.00 per
week in the Southern, intermediate and Northern zones, respectively.
The minimum wage established for watchmen is $15.00 per week.

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. Provisions are included covering handicapped
persons and posting of the Code, as well as other general labor
provisions for the protection and welfare of employees.

ECONOMIC EFFECTS OF THE CODE

The Research and Planning Division estimates that while there
were about 566 wage earners in this Industry in 1929, there were
probably not more than 167 Avage earners employed in 1933. The
Code Committee for the Industry presents figures indicating that the
1929 production of 148 million units has steadily decreased to about
19 million units in 1933.

(498)

499

It is estimated that under the very low existing volume of produc-
tion, the hourly limitations provided by the Code will not result im-
mediately in increased employment. The Industry is reported to be
operating on about a 33 hour work week at present due to lack of
demand for this durable product, and accordingly production would
have to improve before the Code would be effective in creating em-
ployment. Even at the prevailing 33 hour work week, however, the
minimum rates of 250 per hour for the South and 40$ per hour for
the North is more than sufficient to restore 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 find that:

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

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

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

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

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

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

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

Hugh S. Johnson,

Administrator.
March 26, 1934.

CODE OF FAIR COMPETITION FOR THE SAND-LIME
BRICK 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 Sand-Lime Brick Industry, and shall be the
standard of fair competition for such Industry and shall be binding
upon every member thereof.

Article II — Definitions

Industry.— The term " Industry ", as used herein, means and in-
cludes the manufacture and/or sale by those who manufacture Sand-
Lime Brick and other units made of a combination of sand and lime
under the sand-lime brick steam pressure process, and may further
include any other related groups that, with the approval of the
Administrator, may elect to operate under this Code.

Region. — The term "region", as used herein, includes any major
territory established with definite boundaries, as further described
in Schedule A attached, for the purposes of administering this Code.

Member of the Industry. — The term "Member of the Industry",
as used herein, includes anyone engaged in the Industry, as above
defined or any part thereof, either as an employer or on his own
behalf.

Employee. — 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, except a member of the Industry.

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

South. — The term tw South ". as used herein, includes the following
states: Alabama, Arizona. Arkansas, California south of an east
and west line drawn through Tehachapi, Florida, Florida, Georgia,
Kentucky. Louisiana. Mississippi. New Mexico, North Carolina,
Oklahoma, South Carolina, Tennessee. Texas, and Virginia.

North. — The term "North", as used herein, includes all territory
except that listed above under " South ".

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

Article III — Hours

Section 1. Except as hereinafter otherwise provided, no emplo3Tee
shall be permitted to work in excess of fort}^ (40) hours in any one

(500)

501

week or eight (8) hours in any twenty-four (24) hour period begin-
ning at midnight, nor more than six (6) days in any seven (7) day
period.

Section 2. The provisions of the foregoing section shall not
appty to :

(a) Outside salesmen or to persons employed in a managerial or
executive capacity who earn not less than thirty-five (35) dollars per
week in the North, or not less than thirty (30) dollars per week in
the South.

(b) Employees on emergency maintenance or emergency repair
work involving breakdowns or protection of life and property; but
in any such special case at least one and one-third (IV3) times the
normal rate shall be paid for hours worked in excess of eight (8) per
day and forty (40) per week.

(c) Employees engaged at plants where employment is dependent
upon favorable weather conditions when such employment is neces-
sary to recover time lost by inclement weather ; however, under such
conditions, no employee may be permitted to work more than forty-
eight (48) hours in any one week, nor more than forty (40) hours
per week as averaged over any four (4) week period.

(d) Foremen, provided that foremen shall not be permitted to
work more than fifteen (15) percent longer hours than the eight (8)
and forty (40) hour maximums herein provided.

(e) Watchmen, who shall not be permitted to work more than
fifty-six (56) hours in any one week.

Section 3. Employees necessary for the closing of " hardening
cylinders ", limited in number to two (2) employees for each plant,
may be allowed a tolerance of one-half (y2) hour per day in excess
of the eight (8) hour daily, or three (3) hours in excess of the forty
(40) hour weekly limitations on working time provided in section 1
of this Article, but shall be paid for such overtime at the rate of one
and one-third (IV3) times their normal rates of pay.

Section 4. Employees in plants having not more than two " Pro-
duction Units " and no " Excess Hardening Cylinder Capacity "
(quoted terms as hereinafter defined) shall not be permitted to work
in excess of forty (40) hours in any one week, nor more than ten
(10) hours in any twenty-four (24) hour period beginning at mid-
night; provided, however, that at least one and one-third (IV3) times
the normal rates shall be paid for all time worked in excess of eight
(8) hours per day.

(The term " Production Unit " as used herein means and includes
one (1) Brick Press and one (1) Hardening Cylinder; the Brick
Press having such a capacity as will completely fill the Hardening
Cylinder in ten (10) hours.)

(The term " Excess Hardening Cylinder Capacity " as used herein
means that the plant has more or larger Hardening Cylinders than
its Brick Presses can completely fill in ten (10) hours.)

Section 5. No employer shall knowingly permit any employee to
work for any time which, when totaled with that already performed
for another employer or employers, exceeds the maximum permitted
herein.

502
Article IV — AY ages

Section 1. No employee shall be paid less than at the rate of forty
(40) cents per hour, except as herein otherwise provided. In the
following states no employee shall be paid less than at the rate of :

(1) California, south of an east and west line drawn through Teh--
achapi; thirty-five (35) cents per hour.

(2) Arizona, Arkansas, Kentucky, New Mexico, North Carolina,
Tennessee, Oklahoma, and Virginia ; thirty (30) cents per hour.

(3) Alabama, Florida, Georgia, Louisiana, Mississippi, South
Carolina, and Texas; twenty-five (25) cents per hour.

This minimum wage shall apply to common labor or totally un-
skilled labor. Other classes of labor shall be compensated at rates
above this minimum.

Section 2. This article establishes a minimum compensation for
each class of worker, which shall apply irrespective of whether an
employee is actually compensated on a time rate, piece work or other
basis.

Section 3. There shall be an equitable adjustment of all wages
above the minimum. Upon the request of the Administrator, the
Code Authorty shall submit, for his approval, a proposal for the
adjustment of wages above the minimum. Upon approval by the
Administrator after such public hearing as he may prescribe, the
agreed upon plan shall become binding as a part of this Code, pro-
vided, however, that in no event shall hourly rates of pay be reduced.

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 law. Wages shall be paid at least twice a
month.

Section 5. An employee shall be paid at least his normal rate of
pay for all time required to be spent at the place of employment or
in connection with the discharge of duties of such employment.

Section 6. No employer shall contract work to be done except
when the person performing the contract is subject to the provisions
of this Code or the code adopted for the Industry covering such
work; and in no case shall an employer avoid or evade the Labor
Provisions of this Code by contracting his work to any person subject
to labor regulations less stringent than those provided in this Code.

Section 7. No person employed in accounting, clerical, office, serv-
ice or sales work shall be paid at less than the rate of fifteen ($15.00)
dollars per week, except that such employees may be paid at not less
than the rate of fourteen ($14.00) dollars per week in the territory
included in subsection 2 of section 1 of this Article; and not less
than at the rate of thirteen ($13.00) dollars per week in the territory
included in subsection 3 of section 1 of this Article.

Section 8. Watchmen shall be paid at not less than the rate of
fifteen ($15.00) dollars per week.

Section 9. This Article establishes rates of pay which shall be
exempt from any charge, fine, and/or deduction by the employer,
except as provided by law.

503

Section 10. 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 a code, if the employer obtains from the State Authority, desig-
nated 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.

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
hazardous in nature or dangerous to health. The Code Authority
shall submit to the Administrator for approval sixty (60) days after
the effective date a list of such operations or occupations. In any
State an employer shall be deemed to have complied with this pro-
vision as to age if he shall have on file a valid certificate or permit
duly signed by an Authority in such State empowered to issue em-
ployment or age certificates or permits showing that the employee
is of the required age.

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

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

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

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. Standards for safety and health shall
be submitted by the Code Authority to the Administrator for ap-
proval within six months after the effective date of this Code. Upon
approval thereof, such standards shall be binding upon every
member of the Industry.

Section 5. Within each State members of the Industry shall com-
ply with any Federal laws or any laws of such State imposing more
stringent requirements regulating the age of employees, wages, and

504

hours of work, safety or health, fire, insurance, or general working
conditions than under this Code.

Section 6. Within ten clays of the effective date, each employer
shall post, and thereafter maintain, in conspicuous places easily ac-
cessible to employees, full copies of this Code and any amendments
or modifications which may later be approved.

Section 7. No employee shall be required, as a condition of
employment, to trade at a store owned or specified by an employer.

Section 8. Employees, other than maintenance or 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.

Article VI — Costs and Prices

Section 1. Cost Finding. — 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, as shall
full details of all changes therein as and when made. Before be-
coming effective the cost system and methods of cost finding and
estimating, and all changes therein shall be filed with the Adminis-
trator subject to his approval. After such approval and notice by
the Code Authority, each member of the Industry shall determine
and estimate costs in accordance therewith.

Section 2. Selling Below Cost. — Upon notice by the Code Au-
thority, as provided in Section 1 of this Article, no member of
the Industry shall sell any Industry product at a price below his
own individual cost, as determined in accordance with Section 1
above; except (a) to meet the filed price of another member of the
Industry as provided below in Section 3 (a) ; and except (b) that
dropped lines or seconds may be disposed of by any member of the
Industry at any price and on any terms and conditions, but only
after such member, two weeks prior to such disposal has filed with
the Code Authority a statement in writing setting forth the fact of,
reasons for, and terms of such proposed disposal.

Section 3. Open Price Policy. — (a) Each member of the Industry
shall publish and file with the Code Authority within ten days of
the effective date of this Code a price list of all Industry products
offered for sale or sold by him and all terms, conditions of sale and
credit extensions relating thereto. Such price lists and terms and
conditions of sale so filed with the Code Authority shall be open to
inspection at all reasonable times by any interested party. Revised
price lists or revised terms and conditions of sale may be filed from
time to time thereafter with the Code Authority by any member
of the Industry; provided, however, that such revisions shall be filed
with the Code Authority five days in advance of the effective date
thereof; and provided further, that any other member of the In-
dustry may file revisions of his price list or terms and conditions
of sale to meet the revisions first filed, which may become effective

505

upon the date when the revised price list or revised terms and con-
ditions of sale first filed shall become effective.1

(b) No member of the Industry shall sell or offer for sale any
product of the Industry at prices lower than the prices filed in his
price list, or on more favorable terms and conditions of sale, than
the terms and conditions of sale previously filed by such member
with the Code Authority in accordance with the provisions of Sub-
section (a) of this Section and in effect at the time of such sale.

Article VII — 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
except such as may be required to meet individual cost should be
delayed. But such increases should, so far as possible, be limited
to actual additional increases in the seller's costs.

Article VIII — Administration

Section 1. Code Authority. — 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 2. Organization of Code Authority. — The Code Author-
ity shall consist of seven (7) members, all of whom shall be the chair-
men of their respective Regional Committees as hereinafter provided
in Section seven (7) of this Article. During the period prior to the
organization of the Code Authority as provided in the foregoing
sentence, but not to exceed a period of thirty (30) days from the
effective date of this Code, the chairman of the Code Committee as
elected by the tentative organization shall serve and act as the Code
Authority. In addition to the seven (7) members elected by the
Industry, from one to three members may be appointed to the said
Code Authority by the Administrator for terms of from six months
to one year as designated in the order of appointment. The members
so appointed by the Administrator shall be without vote and shall be
given notice of and may sit at all meetings of the Code Authority.
Similar notice of meetings of the Code Authority shall also be given
to the Administrator.

Section 3. In order that the Code Authority shall at all times be
truly representative of the members 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 selection of the Code
Authority.

Section 4. If the Administrator shall determine that any action
of a code authority or any agency thereof may be unfair or unjust or
contrary to the public interest, the Administrator may require that
such action be suspended to afford an opportunity for investigation

See paragraph 2 of order approving ths Code.

506

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.

Section 5. Powers and Duties of Code Authority. — The Code Au-
thority shall be charged with the administration of this Code
throughout the Industry and without limiting the foregoing shall
have the following specific powers and duties :

(a) To obtain from all members of the Industry such sworn or
unsworn reports, periodically, or as often as it may direct, on wages,
hours of labor, conditions of employment, number of employees, pro-
duction, shipments, sales, stocks, prices and other matters pertinent
to the provisions or operations of this Code, as the Code Authority
may specify, or as the Administrator may from time to time require ;
provided however that information of a confidential nature shall
not be divulged to a competitor or competitors.

(b) 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 furnish
reports to Government agencies.

(c) To make such surveys or investigations as may be necessary to
ascertain conditions in the Industry and the observance or non-
observance of the provisions of this Code.

(d) To coordinate the activities of the regional committees here-
inafter referred to.

(e) To submit to the Administrator from time to time such recom-
mendations, modifications or proposed amendments as, in its judg-
ment, will improve the operation of this code or further effectuate
the policies of the Act. Any such recommendation, when approved
by the Administrator, after such notice and hearing as he may re-
quire, shall become effective as a part of this code.

(f) To set up standards regarding specifications and sizes of
Industry products, and to submit such standards for the approval
of the Administrator.

(g) To adopt by-laws, rules and regulations, elect officers, appoint
agents, and otherwise regulate its activities.

(h) To establish, subject to the approval of the Administrator,
the pro rata share of the expense of administration of this code by
the Code Authority, on the basis of volume of business and/or such
other factors as may be deemed equitable to be taken into considera-
tion, and to collect such expenses from members of the Industry.

(i) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisions of
the Act.

(j) To cooperate with committees representing other Industries
for the purpose of effecting solutions to mutual problems.

(k) Administrative Expense. — Only those members of the Indus-
try who assent to and comply with the requirements of this Code and
sustain their reasonable share of the expenses of its administration

507

as noted in subsection (h) above 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
National Recovery Administration code insignia.

Section G. Each trade association directly or indirectly partici-
pating 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
purpose of the Act.

Section 7. Regional Committees. — (a) Further to effectuate the
policies of the Act and to cooperate with the Code Authority in
administering this Code, there shall be established in each region,
as noted in Article XII, an administrative agency to be known as
Regional Committee, to be made up of one representative from each
member of the Industry in that region. Each region shall, so far as
practicable, be self-governing under this Code, however the acts of
such committees shall be subject to the approval of the Code Au-
thority, and the Code Authority shall not be relieved of its respon-
sibility for the administration of this Code.

(b) Each Regional Committee shall, by a fair method of elec-
tion approved by the Administrator, choose from among its mem-
bers a chairman within four weeks of the effective date of this Code.

(c) No Industry member of the Code Authority, and no member
of any regional, or other administrative committee or agency estab-
lished pursuant to the provisions of this Code, shall hold office for
a longer term than one year from the date of organization of the
agency to which he is elected, except by reelection or until his suc-
cessor is elected.

Article IX — Trade Practices

Section 1. The following practices constitute unfair methods of
competition for members of the Industry and are prohibited, and
when employed shall be deemed violations of this Code :

(a) Withholding from, or inserting in the invoice, facts which
make the invoice a false record, wholly or in any material particu-
lar, of the transaction made on the face thereof; or the payment or
allowance of secret rebates, refunds, credits, or unearned discounts,
directly or indirectly, whether in money or otherwise.

(b) The sale of an inferior quality of industry product at a fair
price for such product, and the delivery of a product of superior
quality selling at a higher price.

(c) Inducing, or attempting to induce, the breach of a contract,
oral or written, beUveen a competitor and his customer during the
term of such contract.

(d) Interference with or the obstruction of the performance of a
contract by the solicitation by a member of the Industry or his repre-
sentative, directly or indirectly, of an order for Industry products,
with knowledge that a signed order from the one in authority has

508

previously been given a competitor. An architect's specification of
Industry products shall not be regarded as a signed order.

(e) The renewal of sales effort by a competitor on an operation
after the seller receiving the order has commenced delivery and where
a difference has arisen resulting in a cessation of delivery, unless the
said seller has had a reasonable opportunity to adjust said difference
of opinion.

(f ) 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 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.

(g) The making of lump sum bids, or installed prices by a member
of the Industry or his agent, on Industry products, special shapes,
and other building materials, thereby concealing the unit price of
each of the several items embraced therein.

(h) The shipment or delivery of Industry products, which do not
conform to the standard of sample submitted as representative of
the material to be shipped, or to representations made prior to se-
curing the order, unless with the consent of the purchaser to such
substitution prior to shipment.

(i) The payment of commissions or bonuses to other than bona fide
dealers or brokers who are recognized as such in the Industry, or
full time salesmen employed by the member of the Industry for
whom the sale is made.

Section 2. All quotations and contracts, except petty sales to indi-
viduals or small sales for local consumption not exceeding one (1)
truck load, for the sale of the products of the Industry, shall be made
or confirmed in writing and shall contain a definite statement of
price, quantity, terms of payments, time and place of delivery, and
all other items necessary to form a complete understanding.

Article X — Monopolies

No provisions of this code shall be so applied as to permit
monopolies or monopolistic practice, or to eliminate, oppress, or
discriminate against small enterprises.

Article XI — Modifications

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

509

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

Article XII — Kegional Divisions

The territories comprising the regions into which the United States
shall be divided for administration of the Act in the industry, shall
be as given in schedule A attached. These regions are subject to
coordination or revision by the Code Authority, with the approval
of the Administrator.

Article XIII — Effective Date

This Code shall become effective at 12 : 01 A.M. on the tenth day
after its approval by the President.

Approved Code No. 365.
Registry No. 1007-13.

Schedule A

NAMES OF REGIONS

Region 1: The States of Maine, New Hampshire, Vermont, Massachusetts,
Connecticut and Rhode Island, with the exception of that territory included
within a radius of seventy-five (75) air-miles of the City Hall of New York City.

Region 2 : The territory included within a radius of seventy-five (75) air-miles
of the City Hall in New York City, and including all of Long Island.

Region 3 : New York, New Jersey, Pennsylvania, Delaware, Maryland, and
the District of Columbia exclusive of the areas covered by region two above.

Region 4: Virginia, West Virginia, Kentucky, Louisiana and those States
south of the Ohio River and East of the Mississippi River.

Region 5 : Texas, Oklahoma, New Mexico, Arizona, California, Nevada, Utah,
Washington, Oregon, Montana, Idaho, and Wyoming.

Region 6: Missouri, Arkansas, Iowa, Kansas, Colorado, Nebraska, the Da-
kotas, and that part of Illinois not included in region seven below.

Region 7 : Minnesota, Wisconsin, Michigan, Indiana, Ohio, and that part of
Illinois included within a radius of fifty (50) air-miles of the City Hall in
Chicago.

(510)

Approved Code No. 366
CODE OF FAIR COMPETITION

FOR THE

RETAIL MONUMENT INDUSTRY

As Approved on March 26, 1934

ORDER

Approving Code or Fair Competition for the Retail Monument

Industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Recovery
Act, approved June 16, 1933, for approval of a Code of Fair Com-
petition for the Retail Monument 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 :

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
A. R. Glancy,

Division Administrator.

Washington, D.C.,

March 26, 193Jf.

490GG0 425-159 34 (511)

REPORT TO THE PRESIDENT

The President,

The White Bouse.
Sir: This is a report on the Code of Fair Competition for the
Retail Monument Industry and on the Public Hearing conducted
thereon in Washington, D.C. on January 3, 1934, in accordance with
the provisions of the National Industrial Recovery Act.

INDUSTRY BACKGROUND

The Retail Monument Industry, as the name implies, represents
the Retail selling, manufacturing and erecting of monuments, in-
cluding mausoleums and other related types of memorial. The sale
of monuments erected in a cemetery constitutes about eighty (80%)
per cent of the dollar sales volume of the Industry in normal periods,
the remaining twenty (20%) per cent being public and private me-
morials and related objects erected outside a cemetery. The princi-
pal materials incorporated in memorial work and sold, and erected
by the Industry include, in the approximate order of volume import-
ance, Granite, Marble, Bronze and Slate. Due to the personalized
nature of the Industry it is necessary, and has always been the cus-
tom, for members of the Industry to do a portion of the fabricating,
cutting lettering and/or manufacturing of monuments sold by them.
The members of the Industry also render a personal service in the
cleaning, tuckpointing, repairing, and lettering of monuments erected
in the cemetery and elsewhere.

Competitively, the Industry is highly intra-competitive, although
there is a tendency for Cemetery operators and wholesale monument
manufacturers to enter the retail monument industry in competition
with the established members of the Industry.

The present deplorable condition of the Industry is due primarily
to the failure of the consuming market, which condition has, in turn,
resulted in distressing trade practices by the highly competitive
members of the Industry. The current volume of business clone by
the Retail Monument Industry is about twenty-five (25%) per cent
of 1928, at which time, it is reported the value of retail monument
sales was approximately $63,000,000.00.

A further indication of the unfortunate position in which the
Retail Monument Industry is presently situated, lies in the fact that
the sale of monuments generally lags considerably behind an im-
provement in general business conditions.

HOURS AND WAGES

The Code establishes a 40-hour week excepting watchmen who are
permitted to work 56 hours per week; firemen, engineers and truck-

(512)

513

men who are permitted to work 48 hours; and clerical and office
employees who are permitted to work 44 hours, provided store hours
are 63 hours or more per week.

Minimum rates of wages established are 40 cents per hour in the
North and 30 cents per hour in the South.

Accounting, clerical and office employees are to be paid not less
than $15.00 per week in any city over 500,000 population; $14.50
per week in any city between 250,000 and 500,000 population, and
$14.00 per week in any other place.

Provision is also made for an equitable adjustment of wages above
the minimum so as to maintain wage differentials as they existed
on June 16, 1933.

Standards of minimum rates of wages, maximum hours of labor,
and other conditions of employment may be established for specific
regions as a result of bona fide collective bargaining between em-
ployers and employees, subject to the approval of the Administrator.

Child labor is prohibited and no person under 18 years of age may
be employed at occupations or operations which are hazardous in
nature or dangerous to health.

Standards of safety and health are to be submitted by the Code
Authority, steps shall be taken by employers to reduce the dust
in the air breathed by employees, and workmens' compensation in-
surance for accidental injury shall conform with State requirements.

ECONOMIC EFFECT OF CODE

Available statistics are not very clear as to the number of workers
employed in the Retail Monument Industry. It is estimated, how-
ever, that in 1928 the total number of workers engaged in the Retail
Monument Industry was 36,000. By the fall of 1933 the number
had been reduced to about 15,000, working, principally on a part
time basis, a total of 405,000 man hours.

In view of these conditions, and those recited above, there is little
likelihood of any material increase in employment until conditions
improve generally. The wage and hour provisions of the Code
materially improve labor conditions especially in the South where the
minimum wage rates, now established, represent an increase over
" depression " rates of nearly 50%.

It is expected that the adoption of the fair trade rules established
in the Code will stabilize the Industry and materially assist in
returning it to its former healthy basis of operation.

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 :

514

ment under adequate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be
temporarily required), by increasing the consumption of industrial
and agricultural products through increasing purchasing power, by
reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.

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

(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant group
is an Industrial Group, truly representative of the aforesaid In-
dustry, and that said group 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, therefore, I have approved this Code.
Respectfully,

Hugh S. Johnson,

A dminis trator.
March 26, 1934.

CODE OF FAIR COMPETITION FOR THE RETAIL
MONUMENT INDUSTRY

Article I — Purposes

To effectuate the policies of Title I of the National Industrial Re-
covery Act, this Code is established as a Code of Fair Competition
for the Retail Monument Industry, and its provisions are the stand-
ards of fair competition for such Industry and shall be binding upon
every member thereof.

Article II — Definitions

Section 1. The terms " Retail Monument Industry " and/or " In-
dustry ", as used herein, includes the retail selling, designing, letter-
ing, cleaning, erecting and repairing of monuments and such
manufacturing, building and setting as is incidental thereto (except
such building and setting as is customarily done by cemeteries, and
employees so engaged are subject to the provisions of the Cemetery
Code or other code having jurisdiction) and such related branches
or subdivisions as may from time to time be included under the
provisions of this Code by the Administrator, after such notice
and hearing as he may prescribe.

Section 2. The term monument " as used herein includes monu-
ments, memorials, markers, headstones, mausoleums, tombs, tomb-
stones, coping, lot enclosures, surface burial vaults, urns, and all
other similar types of memorials.

Section 3. The term " member of the industry " as used herein
includes any individual, partnership, association, corporation, or
other form of enterprise engaged in the Industry, either as an em-
ployer or on his or its own behalf.

Section 4. The term " employee " as used herein includes any and
all persons engaged in the Industry, however compensated, except a
member of the Industry.

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

Section 6. The term " National1 Association " as used herein means
the Memorial Craftsmen of America.

Article III — Hours

Section 1. Maximum Hours. — No employees shall be permitted
to work in excess of forty (40) hours in any one week or eight (8)
hours in any twenty-four (24) hour period beginning at midnight,
except as herein otherwise provided.

(a) In case of necessity arising from inclement weather, or the
character of the work, or from inability to obtain competent labor, or

(515)

516

in ease of seasonal requirements, an employee may be permitted to
work in excess of forty (40) hours in any one week or eight hours in
any twenty-four hour period, provided, however, that the hours of
labor in such case shall not exceed an average of forty (40) hours per
week for each six (G) months period of the year or a maximum of
forty-eight (48) hours per week, and provided further that overtime
rates shall be paid for all hours worked in excess of eight (8) hours
per day or forty (40) hours per week at the rate of one and one-half
(1%) times the normal rate.

Section 2. Hours for Clerical and Office Employees. — On and
after the effective date of this Code members of the Industry shall
elect to operate upon one of the following schedules of store hours
and hours of clerical and office labor.

Group A. — Any establishment may elect to remain open for busi-
ness fifty-six (56) hours or more per week but less than sixty-three
(63) hours per week; no clerical or office employee of such establish-
ment shall work more than forty (40) hours per week, nor more than
eight (8) hours per day, nor more than six (6) days per week.

Group B. — Any establishment may elect to remain open for busi-
ness sixty-three (63) hours or more per week; no clerical or office
employee of such establishment shall work more than forty-four (44)
hours per week; nor more than nine (9) hours per day, nor more
than six (6) days per week.

Section 3. Watchmen, — Employees engaged as watchmen may be
permitted to work not in excess of fifty-six (56) hours in any one
week, or more than six (6) days in any seven (7) day period.

Section 4. Enginews, Firemen and Truckmen. — Employees en-
gaged as engineers or firemen in manufacturing operations or truck-
men may be permitted to work not in excess of forty-eight (48^
hours in any one week, or more than six (6) days in any seven (7)
day period.

(a) The maximum hours as fixed in this article shall not apply
to any employee engaged in emergency maintenance or emergency
repair work involving breakdown or protection of life or property,
but in such special case, at least one and one-half (1%) times the
normal rate shall be paid for hours worked in excess of the maximum
provided herein.

Section 5. Standard Week. — Except as otherwise herein provided,
no clerical, office, lumper, or setter employee shall be permitted to
work more than six (6) days in any seven (7) day period, and no
other employee shall be permitted to work more than five (5) days
in any seven (7) day period.

Section 6. Exception to Hours. — The provisions of this Article
shall not apply to persons employed in a professional, administrative,
or supervisory or executive capacity who earn not less than thirty-
five ($35) dollars per week, or to outside salesmen.

Section 7. 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 or any other Industry, exceeds the maximum
permitted herein.

517

Article IV — Wages

Section 1. Minimum Wages. — No employee shall be paid in any
pay period less than at the rate of forty (40) cents per hour, except
in the States of Georgia, Alabama, North Carolina, Tennessee, Ar-
kansas, South Carolina, Florida, Mississippi and Louisiana, where
no such employee shall be paid at less than the hourly rate of thirty
(30) cents, except as otherwise herein provided.

Section 2. Piecework Compensation. — This article establishes a
minimum rate of pay which shall apply, irrespective of whether an
employee is actually compensated on a time rate, piecework, or other
basis.

Section 3. Adjustment of Wages. — Employers shall not reduce
the rates of wages for employees whose rates are now in excess of
the minimum rate of wages (notwithstanding that the number of
hours worked in such employment may be hereby decreased) and
where in any case an employer lias not increased the rates of wages
for such employees prior to the effective date of this Code by an
equitable readjustment of all such wTage rates such employer shall
readjust all such wage rates, so as to maintain equitable wage differ-
entials as existing on June 16, 1933. This provision shall be inter-
preted in the same manner that paragraph 7 of the President's Re-
employment Agreement has been interpreted by the Administrator in
Interpretations Nos. 1 and 20.

Section 4. Female Employees. — 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 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. Provided, however, that the total number of such
emplojrees shall not exceed five (5) percent of the total number of
employees of a member of the industry, except that each member of
the industry shall be allowed to employ at least one (1) such em-
ployee. Each employer shall file with the Code Authority a list of
all such persons employed by him.

Section 6. Manner of Payment. — All employees shall be paid in
lawful currency or negotiable checks at least semi-monthly.

No offer of a partnership or participation in business management
shall be made with the intent to avoid the payment of wages.

Section 7. Withholding Wages. — All wages shall be exempt from
any charge and/or deduction by the employer, except those charges
and/or deductions voluntarily accepted or agreed to by the wage
earner, or permitted and/or required by law.

Section 8. Accounting , clerical and office employees. — Accounting,
clerical and office employees shall be paid not less than $15.00 per
week in any city of over 500,000 population, or in the immediate trade
area of such city; $14.50 per week in any city of between 250,000 and
500,000 population, or in the immediate trade area of such city; and
$14.00 per week in any other place.

49066° 425-159 34 2

518

Section 9. Outside salesmen. — All salesmen, agents, and/or sale3
representatives of any member of the Industry shall be paid not less
than Ten Dollars ($i0.00) per week.

Section 10. Exceptions. — Nothing herein contained shall be con-
strued to apply to employees whose hours of employment and/or rate
of wages are established for specific projects by competent govern-
mental authority (Federal, State, or political sub-divisions thereof)
acting in accordance with law or to employees whose hours of em-
ployment and/or rates of wages are established by wage agreements
now in force, providing the rates of wages covered by such agree-
ments are in excess of the minimum herein provided, and that the
maximum hours in such agreements are not more than the maximum
herein established.

Section 11. Standards as to minimum rates of wages, maximum
hours of labor and such other conditions of employment as may be
necessary to effectuate the policies of Title I of the Act may be
established in the industry for a specifically defined region as a
result of bona fide collective bargaining between truly representative
groups of employers and employees within various divisions or
localities of this industry. Such agreements shall be presented to
the Administrator for approval. Following a Public Hearing ap-
proval may be given. Upon approval, this agreement shall, in
respect to the performance within the defined area, be binding on all
members of the industry operating within the specifically defined
region of the industry with the same force and effect as the provisions
of this Code.

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
Authority shall submit to the Administrator for approval 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 valid 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. Labor Provisions of the Act. — In compliance with Sec-
tion 7 (a) of the Act it is provided :

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

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

519

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

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

Section 4. Contracting. — Any and/or all systems of contracts be-
tween employer and employee for the manufacture of any product
or part thereof regarding work to be done at a specific price and/or
by which employees engage other employees to work for them for
the purpose of avoiding the labor provisions of this Code, are pro-
hibited by this Code.

Section 5. Safety and Health. — Every employer shall provide a
safe and healthy working environment for his employees by com-
plying with all State regulations referring to occupational safety
and health insofar as the same may apply to the work of his
establishment.

Every employer shall take steps to reduce the dust in the air
breathed by his employees to such amount as may be approved from
time to time by the United States Public Health Service, within
ninety (90) days after the effective date of this Code.

Standards for safety and health shall be submitted by the Code
Authority to the Administrator for approval within six (6) months
after the effective date of this Code.

Every employer shall protect each of his employees against acci-
dent arising out of and in the course of his employment in such
amounts and under such terms of notice and claim as are provided
under the workmen's compensation act of the state in which he is
employed.

Section 6. State Laws. — No provision in this Code shall supersede
any State or Federal Law which imposed 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 in-
surance, or fire protection, than are imposed by this Code.

Section 7. Posting. — All employers shall post copies of this Code
subject to such rules and regulations as the Administrator may pre-
scribe.

Article VI — Organization, Begional Divisions, Powers and
Duties of the Code Authority and Regional Committees

Section 1. Organization and Constitution. — There shall forth-
with be constituted a Code Authority consisting of one representa-
tive from each regional division hereinafter provided, or subse-
quently formed, if said regional division shall elect a member for
the Code Authority. Within ten (10) days after the effective date
of this Code, the Secretary of the National Association shall name
a time and place in each regional division for a meeting of the mem-
bers of the industry whose principal place of business is located in
the particular division. Notice of said meeting and the purpose
thereof shall be sent by said Secretary to all known members of the
industry whose names may be secured in the exercise of reasonable

520

diligence, not later than ten (10) days prior to the date of said meet-
ing." At said meeting in each regional division, the members of the
industry of the particular regional division shall elect from among
their number b}T a majority vote one representative from that divi-
sion who shall be a member of the Code Authority. They shall also
elect from among their number by a majority vote an alternate for
said representative on the Code Authority. The duly elected mem-
ber and alternate of the Code Authority shall, by virtue of such elec-
tion also become members of the regional committee. At said meet-
ing there shall also be elected by a majority vote from among their
number a regional committee of not less than seven nor more than
fifteen (including the duly elected member of the Code Authority
and Alternate) members of the industry and whose principal places
of business are located in the particular regional division. Except
that any region may elect one member of the regional committee who
is not a member of the Industry. The duties of each regional com-
mittee shall be to supervise the administration of this code in their
respective divisions, subject to the approval of the Code Authority,
and to carry out such other duties as this Code or the Code Authority
may from time to time prescribe. The Executive Secretary of the
National Association shall act as Secretary of the Code Authority
without the right to vote.

Section 2. Administration Represented ice on the Code Author-
foym — The Administrator in his discretion may appoint not more than
three additional members on the Code Authority without vote, and
without compensation from the Industry, to serve for such period
of time and to represent the Administrator or such group or groups
as the Administrator may designate.

Section 3. Regional Division. — For the purposes of facilitating
the administration and enforcement of this Code and providing for
a representative organization, the Retail Monument Industry is
hereby divided into sixteen (16) Regional Divisions as follows:

Division 1. Maine, New Hampshire and Vermont.

2. Massachusetts. Rhode Island and Connecticut.

3. New York.

4. New Jersey.

5. Pennsylvania.

6. Delaware, Maryland, District of Columbia, Vir-

ginia and West Virginia.

7. North Carolina, South Carolina, Georgia, Flor-

ida, Alabama, Tennessee and Mississippi.

8. Ohio, Kentucky and Lower Michigan.

9. Illinois and Indiana.

L0. Louisiana, Arkansas, Oklahoma and Texas.

11. Wisconsin and LTpper Peninsula of Michigan.

12. Missouri, Kansas, Iowa and Nebraska.

13. Minnesota, North Dakota, and South Dakota.

14. Wyoming, Utah, Colorado, New Mexico and

Arizona.

15. Montana, Idaho, Washington and Oregon.

16. California and Nevada.

A minimum of 100 members of the industry, doing business in a
geographically compact area, may petition the Code Authority to

521

create an additional Regional Division, and the Code Authority,
subject to approval of the Administrator, may create such additional
Regional Division, which shall have the same rights, privileges- obli-
gations, and duties as herein provided for the original Division.-.

Section 4. Recall of Members of the Code Authority. — Members
of the Code Authority shall hold office for one year or until such time
as their successors are elected, provided that any member of the Code
Authority may be recalled upon a two-thirds vote of the regional
committee of his division, or by petition of re-call signed by a
majority of the members of the industry in such division who have
assented to this Code, which petition shall be filed with the Code
Authority. In the event of such re-call, the regional committee of
such division shall provide for the election of a new representative
from said division on the Code Authority and until such election
the duly elected alternate from the particular division shall serve
as that division's Code Authority member.

Section 5. Failure to Elect Representative. — If any division as
hereinbefore provided shall fail to elect a representative for the
Code Authority, such representatives as are elected and approved
by the Administrator, from the various division, shall constitute the
Code Authority for the Industry and shall administer the Code for
the division so failing to elect a representative.

Section 6. Code Authority to he Truly Representative. — 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.

Section 7. Members Entitled to Participate. — Every member of
the Industry shall be entitled to participate in and share the bene-
fits of the activities of the Regional Committees and/or the Code
Authority and to participate in the selection of the members thereof,
as herein provided and shall sustain their reasonable share of the
expenses of its administration. Such reasonable share of the ex-
penses of administration shall be determined by the Code Authority,
subject to approval by the Administrator, on the basis of volume
of business and/or such other factors as may be deemed equitable.

Section 8. Liability of Members of Code Authority. — Nothing
contained in this code shall constitute the members of the Code
Authority and/or Regional Committees partners for any purpose.
Nor shall any members of the Code Authority or Regional Commit-
tee be liable in any manner to anyone for any act of any other mem-
ber, officer, agent, or employee of the Code Authority or Regional
Committees. Nor shall any member of the Code Authority or Re-
gional 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 willful misfeasance or
non-feasance.

Section 9. Powers and Duties. — The Code Authority shall have
the following further powers and duties:

522

(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 of the Code.

(c) To obtain from members of the Industry such information
and reports as are required for the administration of the Code and
to provide for submission by members of such information and re-
ports as the Administrator may deem necessary for the purposes
recited in Section 3 (a) of the Act, which information and reports
shall be submitted by members to such administrative and/or Gov-
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 Government
agency. No individual reports shall be disclosed to any other mem-
ber of the Industry or any other party except to such governmental
agencies as may be directed by the Administrator.

(d) To use such trade associations and other agencies as it deems

E roper for the carrying out of any of its activities provided for
erein, provided that nothing herein shall relieve the Code Au-
thority of its duties or responsibilities under this Code and that
such Trade associations and agencies shall at all times be subject to
and comply with the provisions hereof.

Any Association participating directly or indirectly in the selec-
tion or activities of the Code Authority shall impose no inequitable
restrictions on membership, and shall submit to the Administrator
true copies of its Articles of Association and By-laws, regulations,
and any amendments when made thereto, together with such other
information as to membership, organizations, and activities, as the
Administrator may deem necessary to effectuate the purposes of
the Act.

(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 all members of the Industry an equitable and
proportionate payment of the reasonable expenses of maintaining
the Code Authority and the regional Code Committees.

(g) To cooperate with the Administrator in regulating the use of
an}7 N.R.A. insignia solely by those members of the Industry who
have assented to, and are complying with, this Code.

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

(i) 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 Industry. After such system and
methods have been formulated and approved by the Administrator,
full details shall be made available to all members of the Industry.
Thereafter all members shall determine and/or estimate costs in
accordance with the principles of such methods.

(j) To consider reports from members of the Industry concerning
any act or practice of any person, partnership, trust, association, or

523

corporation which such members of the Industry consider violates
any provisions of the Code or is detrimental or injurious to the best
interests and general welfare of the retail monument industry or the
purposes of the Act.

Section 10. Action of Code Authority Subject to Review by Ad-
ministrator.— If the Administrator shall determine that any action
of a code authority or any agency thereof may be unfair or Unjust
or contrary to the public interest, the Administrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by such code
authority or agency pending final action which shall not be effective
unless the Administrator approves or unless he shall fail to disap-
prove after thirty (30) days' notice to him of intention to proceed
with such action in its original or modified form.

Section 11. Amendments and Modifications. — The Code Author-
ity may from time to time recommend to the Administrator amend-
ments and modifications to this Code 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 VII — Price Lists

Filing Price Lists with Regional Committee. — All members of the
Industry within a Regional Division shall within thirty (30) days
after the effective date of the Code, file price lists with the regional
committee, setting forth prices and terms, or the basis thereof, at
which they will sell the products of the industry. Each member's
filed price list shall remain in effect for a period not to exceed ten
(10) days following the filing of a new price list, and upon the
filing of such new list by any member of the industry, the Regional
Committee shall immediately furnish copies of such new list to all
members of the industry within the Division and such lists shall
be available to any interested party. No member shall sell below
the prices contained in his price list unless to meet the price of
another member.1

Article VIII — Trade Practice Rules

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

Rule 2. False Billing. — No member of the Industry shall know-
ingly withhold from or insert in any quotation or invoice any state-
ment, the withholding or insertion of which makes it inaccurate in
any material particular.

Rule 3. Inaccurate Labeling. — No members of the Industry shall
brand or mark or pack any goods in any manner which is intended

1 See paragraph 2 of order approving this Code.

524:

to or does deceive or mislead purchasers with respect to the brand,
kind, grade, quality, quantity, origin, size, substance, character, na-
ture, finish, material content, or preparation of such goods.

Rule 4. Inaccurate Reference to Competitors, Etc. — No member of
the Industry shall publish advertising which refers inaccurately in
any material particular to any competitor or his goods, prices, value,
credit terms, policies, or services, with an intent to deceive or mislead
the public or to injure a competitor.

Rule 5. Selling Below Cost. — Except as hereinafter provided, and
except to meet the competition of another member of the Industry,
no member of the Industry shall make any sale below his own cost.
Notwithstanding the provisions of this Rule, any member of the
Industry may sell at less than his own cost, only in the following
bona fide transactions: (1) Monuments sold as bona fide clearance,
if advertised, marked and sold as such; (2) imperfect or actually
damaged monuments, or bona fide discontinued lines or styles of
monuments, if advertised, marked and sold as such; (3) Monuments
sold upon the complete and final liquidation of any business; (4)
Monuments sold in quantity on contract to departments of the
government, not for resale.

Rule G. 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.

Rule 7. Secret Rebates. — No members of the Industr}^ shall se-
cretly 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.

Rule 8. 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 em-
ployee, agent, or representative of another in relation to the busi-
ness of the employer of such employee, the principal of such agent or
the represented party, without the knowledge of such employer, prin-
cipal 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.

Rule 9. Interference with Another's Contracts. — No member of
the Industry shall attempt to induce the breach of an existing con-
tract between a competitor and his customer or source of supply ; nor
shall any such member interfere with or obstruct the performance of
such contractual duties or services.

Rule 10. Coercion. — No member of the Industry shall require that
the purchase or lease of any goods be a prerequisite to the purchase
or lease of any other goods.

Rule 11. Blacklisting. — No member of the Industry shall join or
participate with other members of the Industry who with such mem-
ber constitute a substantial number of members of the Industry or
who together control a substantial percent of the business in any
specific product or products of the trade, in any transaction known
in law as a blacklist, including any practice or device (such as a
whitelist, which accomplishes the purposes of a blacklist.)

525

Rule 12. Foundations. — No member of the Industry shall know-
ingly place a foundation under a monument which does not comply
with the regulations which may be adopted by the Regional Com-
mittee of his particular Division, subject to the approval of the
Administrator.

Rule 13. Misleading or Deceiving Customers. — No member of the
Industry shall knowingly mislead or deceive any customer.

Rule 14. Advertising of Prices. — No membor of the Industry shall
advertise or quote prices without definite specifications as to complete
sizes, material, finish for the monument, and a statement as to
whether or not the price advertised is for the monument set com-
plete in the cemetery.

Rule 15. Bidding on Competitors Designs or Plans. — No member
of the Industry shall bid or quote on original designs, plans or speci-
fications submitted to a prospective customer by another member of
the Industry, without the consent of the member of the Industry,
person or concern originating such design, plan, or specifications.

Rule 16. Selling Below Filed Price and Fee Splitting. — No mem-
ber of the Industry shall sell or offer to sell any products of the
Industry at a price less than or upon discounts and terms more
favorable to the purchaser than those set forth in the price list filed
with his regional committee (unless to meet the price of another
member) ; nor shall any member of the Industry secretly or openly
agree to divide with a purchaser, intending purchaser or any whole-
sale manufacturer, quarrier or wholesaler any sale commission, dis-
count or profit granted or made, by a member of the Industry in
such sale.

Rule 17. False Records. — No member of the Industry shall will-
fully maintain an inaccurate or false method of determining cost,
but shall conform to the method determined by the Code Authority
and approved by the Administrator.

Rule 18. Fictitious and Deceptive Bidding. — No member of the
Industry shall make a fictitious bid for the purpose of deceiving
competitors or purchasers.

Rule 19. Fee Splitting. — No member of the Industry shall secretly
employ, pay, or hire any cemetery superintendent, sexton, under-
taker, or their employees or anyone having a trust or fiduciary
relationship or interest in the prospective purchase, to make or
influence sales of monuments.

Rule 20. Form of Contracts. — All contracts shall bear accurate
and complete information as to the details of each transaction,
including the terms of sale and method of payment, and they shall
provide that reasonable interest and carrying charges will be added
to unpaid balances after thirty (30) days from the date on which
the contract has been fulfilled.

Rule 21. Trade Marks and Trade Names. — Except where the
copyright or Trade Mark laws otherwise require^ no member of the
Industry shall sell or set any monument upon which, when set in the
cemetery, shall appear any trade name or trademark; except that a
trademark or a trade name having an area not in excess of two square
inches, may be placed not more than 2" above the bottom bed of the
bottom base and except upon the written request of the purchaser.

526

Kule 22. Time to Solicit Customers. — No member of the Industry
shall knowingly, in any wa}^ or manner, solicit or contact a prospec-
tive customer, who has had a death in the family, until two weeks
(14 days) time has elapsed after such death, unless approached by
or expressly invited to contact such customer prior to the expiration
of the said two weeks (14 da}Ts) period.

Rule 23. Advertising Policy of Underselling Competitors. — No
member of the Industry shall use advertising which inaccurately
lays claim to a policy or continuing practice of generally undersell-
ing competitors.

Rule 24. Prison Products. — No member of the Industry shall
knowingly buy or contract to buy any monuments or parts of monu-
ments produced in whole or in part in a penal, reformatory, or
correctional institution located in a State nor signatory and not
subject to the provisions of the Compact of Fair Competition for
Prison Industries of the United States of America. After May 31,
1934, no member of the Industry shall knowingly sell or offer for
sale such monuments.

Rule 25. 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 oi the
Act or of this Code.

Rule 26. Business Address. — To effectuate the purposes of the
Act and for the protection and welfare of the public, every member
of the Industry shall maintain a place of business and shall file-
his address with the Code Authority.

Article IX — 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.

Article X — Modification

Section 1. This Code and all the provisions thereof are express'^
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 by the Code
Authority to the Administrator and such notice and hearing as he
shall specify, and to become effective on approval of the Adminis-
trator.

Article XI — Monopolies, Etc.

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

527

Article XII — 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 costs
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 XIII — Effective Date

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

Approved Code No. 366.
Registry No. 1030-12.

Approved Code No. 367
CODE OF FAIR COMPETITION

FOR THE

METAL TREATING INDUSTRY
As Approved on March 26, 1934

ORDER

Approving Code of Fair Competition for the Metal Treating

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

flTFPOtPO to thp r^T*PSldPTlt *

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 is hereby approved ; provided, however, that the
provisions of Article VI, Section 6, insofar as they prescribe a wait-
ing 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 26, 1934,.

40059° 425-152 34 (529)

REPORT TO THE PRESIDENT

The President,

The White House.
Sir : This is a report on the Code of Fair Competition for the Metal
Treating Industry, as revised after a Public Hearing, held in Wash-
ington on January 18, 1934, in accordance with the provisions of the
National Industrial Recovery Act.

PROVISIONS AS TO HOURS AND WAGES

Employees are limited to 40 hours per week and to 6 days in any
7, except during peak periods, when they may work 48 hours per
week for 8 weeks in any 6 months' period, provided that no unem-
ployed workers possessing the necessary skill are available. Time
and a half will be paid to employees who work in excess of 8 hours
per day, or 40 hours per week.

The minimum wage will be 420 per hour for factory employees, and
$16.00 per week for clerical or office employees. Female employees
doing substantially the same work are to receive the same pay as male
employees.

ECONOMIC EFFECT OF THE CODE

Under the provisions of this Code, estimates for 1934, based on
operations for the first two months, show a gain in employment from
about 600 to about 690 employees or approximately 15%, and an
increase in the average weekly payrolls of about 25%.

The Industry, comprising approximately 80 firms, has an invested
capital of about $1,300,000 and an average annual sales volume of
approximately $1,600,000.

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 proceed-
ings in this matter :

I find that :

(530)

531

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 group
is an industrial association truly representative of the aforesaid In-
dustry ; and that said association imposes no inequitable restrictions
on admission to membership therein.

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

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

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

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

Hugh S. Johnson,

Administrator.
March 26, 1934.

CODE OF FAIR COMPETITION FOE THE METAL
TREATING INDUSTRY

Article I — Purposes

To effectuate the policies of Title I of the National Industrial
Recover}7 Act, the following provisions are established as a Code of
Fair Competition for the Metal Treating Industry and shall be the
standard of Fair Competition for such Industry and shall be binding
on every member thereof.

Article II — Definitions

1. The term " Metal Treating Industry," or "the Industry," as
used herein, means and includes only the performance for sale of the
processes of heat treatment of ferrous and/or non-ferrous metals
and does not include the performance of such processes when in
combination with other primary or secondary operations necessary in
the preparation of metals or metal products for sale or use.

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

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

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

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 under said Act.

6. The term " Institute," as used herein, means Metal Treating
Institute, Inc.

Article III — Hours

1, No employee shall be permitted to work in excess of forty (40)
hours in any one (1) week, or six (6) days in any seven (7) ; pro-
vided, however, that during any period in which a concentrated
demand upon any division of the industry shall place an unusual and
temporary burden for metal treating upon its facilities, and no
unemployed workers possessing the necessary skill to perform said
metal treating work are available, an employee of such division may
be permitted to work not more than forty-eight (48) hours for not
more than eight (8) weeks in any six (6) months' period; and pro-
vided further that these limitations shall not apply to employees on
emergency maintenance or emergency repair work, involving break-
downs or the protection of life or property in the member's own
plant.

(532)

533

2. Where in any case an employee works in excess of eight (8)
hours per day, or forty (40) hours per week, such extra time shall
be compensated for at not less than one and one-half (IV2) times
the hourly rate of such employee.

3. Executives, supervisors, (but not working foremen), chemists
and metallurgists, regularly paid thirty-five ($35.00) dollars or more
per week, and outside salesmen shall be exempt from the maximum
limit of hours established in this Article. Electricians engaged in
the care and repair of indicating pyrometers and related control
equipment shall be permitted to work not more than forty-eight (48)
hours per week, provided that one and one-half (IV2) times the
regular rate shall be paid for all hours worked in excess of forty
(40) hours per week or eight (8) hours per day.

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

5. Clerical or office and shipping and receiving employees may
be employed forty (40) hours per week.

6. Any employer who regularly does the work of an employee
shall be subject to the provisions of this Code as to hours of labor.

Article IV — Wages

1. No employee shall be paid at less than the rate of forty-two
(42^) cents per hour, except as hereinafter provided.

2. 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 in 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, show-
ing wages paid to, and the maximum hours of work for such
employees.

3. No clerical or office employee shall be paid less than the rate
of sixteen ($16.00) dollars per week, excepting office boys and girls,
who may be paid at a rate not less than eighty (80) percent of the
minimum wage fixed in this section; provided, however, that no
employer shall engage at any one time more than one such office
boy or girl for each twenty (20) office employees in regular classifi-
cations, with a maximum limit of twenty (20) office boys or girls in
large offices, but with any employer entitled to have two.

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

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

6. During the first year of apprenticeship the minimum rates of
pay shall not apply to any apprentice indentured under a system of
training which will make the apprentice a skilled heat treater, pro-
vided that the indenture be made in pursuance of the laws of the

534

State in which the company is located. A copy of each indenture
shall be filed with the Code Authority. No emplo}'er shall employ
apprentices in a number to exceed the rate of one (1) apprentice
to every ten (10) journejunan workers employed by him in the partic-
ular trade or occupation at the time of the employment of such
apprentices.

7. 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. Within thirty (30) days after the effective date of
this Code all such adjustments made under the Act shall be reported
to the Code Authority and to the Administrator. In no case shall
rates be reduced.

8. Every employer shall make payment of all wages due in lawful
currency or by negotiable check therefor, payable on demand. Em-
ployers agree that wages of employees paid on an hourly basis shall
be paid at least twice a month and salaries at least once a month.
Employers agree that wages or salaries shall not be withheld.
Wages* and salaries shall be exempt from any payments of pensions,
insurance, or sick benefits other than those voluntarily paid by em-
ployees or required by state law. No employer or his agent shall
accept any rebate, directly or indirectly, on such wages or salaries,
nor give anything of value or extend favors to any person for the
purpose of influencing rates of wages or salaries or the working con-
ditions of employees.

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

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 occu-
pations or operations 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 opera-
tions or* occupations. In any State, an employer shall be deemed to
have complied with this provision as to age if he shall have on file
a certificate or permit duly 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 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.

535

(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 of this Code shall supersede any State or Federal
law which imposes on employers more stringent requirements as to
age of employees, Wages, hours of work, or as to safety, health,
sanitary, or general working conditions, or insurance or fire
protection, than are imposed by this Code.

4. Every employer shall make reasonable provision for the safety
and health of his employees at the place and during the hours of
their employment. Standards for safety and health shall be sub-
mitted by the Code Authority to the Administrator for approval
within sixty (60) days after the effective date of this Code.

5. Each employer shall post and keep posted in conspicuous places,
accessible to all employees, complete copies of this Code and any
subsequent supplementary Codes or amendments.

Article VI — Administration

To effect further the policies of the Act, a Code Authority is here-
by constituted to cooperate with the Administrator in the administra-
tion of this Code.

1. Organization and Constitution of the Code Authority. — (a) The
Code Authority shall consist of five (5) members of the Institute
elected by the members of the Institute, at a meeting duly called for
that purpose or by letter ballot, and two (2) representatives of mem-
bers of the Industry who are not members of the Institute, provid-
ing they so desire, and signify their willingness to pay their fair
proportion of the cost of administering the Code. The representa-
tives of the non-members shall be elected by the non-members in a
meeting duly called for that purpose or by letter ballot. One or
more additional members, without vote, may be appointed by the
Administrator, at his discretion, to represent the Administrator or
such groups or interests as he may designate.

(b) The Institute, or any other trade association directly or in-
directly participating in the selection or activities of the Code Au-
thority shall (1) impose no inequitable restrictions on membership,
and (2) submit to the Administrator true copies of its articles of
association, bylaws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem necessary
to effectuate the purposes of the Act.

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

(d) 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

536

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.

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

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

(a) To adopt by-laws, rules and regulations for its procedure and
for the administration of this Code.

(b) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisions of
the Act. subject to such rules and regulations as may be prescribed
by the Administrator.

(c) To cooperate with the Administrator in making investigations
as to the functioning and observance of any provision of this Code.

(cl) To study the effect of the various provisions of this Code on
the Industry and consider proposals for amendments or modifications
and make recommendation from time to time thereon to the Admin-
istrator, 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.

(e) To provide necessary data for the Administration of this
Code, all members of the Industry shall upon request furnish to the
Code Authority such information concerning conditions in the In-
dustry— including wages, hours of labor, number of employees, costs,
prices, and other matters pertaining to this Code as may be required
by the Administrator — but this shall be carried out through such
channels as to preclude identification of confidential information
furnished by any member of the Industry.

(f) To establish, subject to the approval of the Administrator,
discount terms and extension of time of payment to suit regional
conditions.

3. Reports to Government Agencies. — In addition to the informa-
tion required to be submitted to the Code Authority and to the
Administrator, 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, provided that
nothing herein contained shall relieve anyone of any existing obliga-
tions to furnish reports to government agencies.

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

537

5. Accounting and Cost Filing. — 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 Administrator 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.

6. Open Price Filing. — Within 15 days after the effective date of
this Code, each member of the Industry shall file with the Code
Authority a complete list of its current prices for the different
classifications of metal treating service, terms, and trade discounts.
Such price lists, terms, and discounts may be revised as conditions
require by filing same with the Code Authority. It shall be an
unfair method of competition for any person to sell metal treating
service at any other than the price filed, or to give any concession
directly or indirectly, by any means, from its list of prices, terms,
and discounts, so long as the same remain in force.

A member of the Industry may submit a revised price list to the
Code Authority any time. Such revised price list shall become
effective on the 10th day after it is received by the Code Authority.
The Code Authority shall immediately make such information avail-
able to all interested persons as each may be concerned. When a
member of the Industry files a revised price, any other member may
file a revised price to meet the one first filed. The second price shall
become effective on the effective date of the one first filed.1

7. Members of the Industry shall be entitled to participate in and
share the benefits of the activities of the Code Authority and to
participate in the selection of the members thereof by assenting to
and complying with the requirements of this Code and sustaining
their reasonable share of the expenses of administration. The rea-
sonable share of the expenses of its administration shall be deter-
mined by the Code Authority, subject to review by the Administrator,
on the basis of volume of business and/or such other factors as may
be deemed equitable to be taken into consideration.

Article VII — Trade Practices

1. No member of the Industry shall defame any competitor by
falsely imputing to him dishonorable conduct, inability to perform
contracts, questionable credit standing, or by other misrepresenta-
tions having the tendency and capacity to mislead and deceive
purchasers and prospective purchasers of metal treating service.

2. Procuring, otherwise than with the consent of any member of
the Industry, any information concerning the business of such mem-
ber which is properly regarded as a trade secret, or confidential
within an organization, is unfair trade practice.

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 em-

1 See paragraph 2 of order approving this Code.

538

ployee, the principal of such agent or the represented party, with-
out the knowledge of such empkr^er, principal or party. This com-
mercial 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.

4. It is unfair trade practice to make or cause to be made, or to
permit to be made by word-of-mouth or by publication, any false or
deceptive statement or advertisement, concerning the grade, quality,
character or finish of the process or the work, which statements may
have the tendency or effect of misleading or deceiving customers,
prospective customers, or ultimate retail purchasers of the final prod-
uct, or which may have the tendency or effect of injuring the business
of a competing member in the Industry.

5. Inducing by any means whatever, or attempting to induce, any
party to a contract with a member of the Industry to violate such
contract, is unfair trade practice.

6. It is unfair trade jDractiee to make either direct or indirect dis-
crimination in the price charged to several purchasers of metal
treating service ; provided that nothing herein contained shall forbid
differences in prices due to clearly understood differences in the
grade, and quality of the metal treating, or differences in price based
on quantity discounts.

7. The dating of an invoice other than the date of shipment of all
the material included therein, and the withholding from, or inserting
in the invoice of facts which make the invoice a false record — either
wholly or in part — of the transaction represented thereby and the
payment or allowance of secret rebates, refunds, credits, unearned
discounts, whether in the form of money or otherwise, constitute
unfair competition.

8. It shall be unfair trade practice to subcontract any work in this
Industry, in whole or in part, to any employee.

9. It shall be unfair trade practice for any member of the Industry
who is operating his plant in competition with other members of the
Industry, to rent, to lease or to allow the use of any portion of his
factory space or equipment capacity, to employees for the purpose of
their performing metal treating operations for the trade in competi-
tion with other plants in the Indiistr}^

10. Except to meet the selling price of a bona fide low cost pro-
ducer, it shall be unfair trade practice for any member of the In-
dustry to sell metal treating service below his own individual cost
thereof, costs in all cases being determined in accordance with a
system of accounting acceptable to or established by the Code
Authority with the approval of the Administrator, as mentioned in
paragraph 5, Article VI.

11. It shall be unfair competition to make guarantee against
decline in price, or to give protection against advance in price, ex-
tending beyond a period of ninety (90) days.

12. It shall be unfair competition to make unit prices quoted on
a specified quantity of metal treating applicable to a lesser quantity.
If lesser quantities are shipped under a contract calling for a larger
quantity, billing prices shall be those quoted or consistent with the
actual quantities shipped.

539

13. It is unfair practice deliberately to make impossible delivery
promises for the purpose of winning orders for metal treating
service.

Article VIII — Modifications

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

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, 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, or oppress, or discrim-
inate against small enterprises.

Article X — Effective Date

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

Approved Code No. 367.
Registry No. 1118-25.

Approved Code No. 368
CODE OF FAIR COMPETITION

FOR THE

PRINT ROLLER AND PRINT BLOCK
MANUFACTURING INDUSTRY

As Approved on March 26, 1934

ORDER

Approving Code of Fair Competition for the Print Roller and
Print Block 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 Print Roller and Print Block Manufactur-
ing Industry, and hearings having been duly held thereon and the
annexed report on said Code, containing findings with respect there-
to, having been made and directed to the President :

Hugh S. Johnson,
Administrator for Industrial Recovery,

Approval recommended:
A. R. Glancy,

Division Administrator*

Washington, D.C.,

March 26, 193^

49062°-^— 425-155 34 (541)

REPORT TO THE PRESIDENT

The President.

The White House.
Sir: This is a report on the Code of Fair Competition for the
Print Roller and Print Block Manufacturing Industry, as revised
after a Public Hearing held in Washington on the twenty-fifth 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 7 hours per day and 35 hours per week
with the exception of emergencies occasioned by the necessity for
services of specially skilled employees who cannot be replaced.
During such emergencies employees may work 40 hours per week for
4 weeks in any 6 months' period.

A minimum wage of 75 cents per hour is established, except that
clerical employees, janitors, watchmen, and heating firemen will be
paid at a rate not less than $20.00 per week.

Female and male employees performing substantially the same
work will receive the same rate of pay.

ECONOMIC EFFECT OF THE CODE

As a result of the President's Re-employment Agreement and the
provisions of the Code, this Industry, comprising about 14 companies,
will show a gain in employment from about 130 to about 175
employees or an increase of 34%.

Although a small industry, it is important to the wall paper and
linoleum manufacturing industries which purchase print rollers and
print blocks, because of the high degree of skill required in pro-
ducing these products.

The invested capital is about $250,000.00 and the five-year average
animal value of products is approximately $530,000.00.

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:

(542)

543

dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and manage-
ment under adequate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor and by otherwise rehabilitating industry.

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

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

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

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

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

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

Hugh S. Johnson, Administrator.
March 26, 1934.

CODE OF FAIR COMPETITION FOR THE PRINT ROLLER
AND PRINT BLOCK MANUFACTURING INDUSTRY

Article I — Purposes

To effectuate the policies of Title I of the National Industrial
Recover}T Act, the following provisions are established as a Code of
Fair Competition for the Print Roller and Print Block Manufac-
turing Industry, and shall be the standard of fair competition for
such Industry and shall be binding upon every member thereof.

Article II — Definitions

The term " Print Roller and Print Block Manufacturing Indus-
try ", or the " Industry ", as used herein, includes ; the manufacture
for sale and selling of (a) rollers consisting of a wooden cylinder
and having mounted thereon raised designs cut from sheet or strip
brass and felt and which rollers are used in printing wall paper,
crepe paper, and linoleum; and (b) wooden printing blocks, having
mounted thereon raised designs cut from brass and felt, which are
used in printing linoleum and oil cloth.

The term " Employee ", as used herein, includes any person en-
gaged in this Industry in any capacity, receiving compensation for
his services, irrespective of the nature or method of payment of such
compensation.

The term " Employer ", as used herein, includes anyone by whom
such an employee is compensated or employed.

The term "Association ", as used herein, means Print Cutting
Jobbers Association, a trade organization.

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

The term "Apprentice ", as used herein, includes anyone regu-
larly indentured for a sufficient length of time to systematically
learn the various operations in any one of the trades or occupations
in the Industry.

The terms " President ", "Act ", and "Administrator ", as used
herein, shall 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
thirty-five (35) hours in any one (1) week or seven (7) hours in any
twenty-four (24) hour period or five (5) days in any seven (7) days
or except between the hours of 8 A.M. to 5 P.M. except as hereinafter
provided.

(544)

545

(a) To cover an emergency production demand on any division
of the Industry and providing that no unemployed workers pos-
sessing the necessary skill to perform this work are available, any
employee in any such division may be permitted to work not more
than forty (40) hours per week in any four (4) weeks in any six
(6) months period; provided, however, that at least one and one-half
(IV2) times the employee's regular rate shall be paid for all hours
worked in excess of seven (7) hours per day or thirty-five (35)
hours per week.

(b) The limitations as to hours of labor shall not apply to per-
sons in a managerial or executive capacity who receive thirty-five
($35.00) dollars or more per week.

(c) Watchmen shall be allowed to work not more than fifty-six
(56) hours per week performed in not more than six (6) days in
any seven (7) day period.

(d) No employer shall engage any employee for any time which,
when totaled with that already performed for another employer, or
employers, exceeds the maximum permitted herein.

(e) Any employer who does the work of an employee shall be
subject to this Code as to hours of labor.

Article IV — Wages

Section 1. The minimum hourly wage that shall be paid any
employee shall not be less than at the rate of seventy-five (75^)
cents per hour, except as hereinafter provided.

(a) Apprentices, who shall be limited in number to not more than
five (5%) percent of the total number of skilled employees in the
factory, may be paid, as a starting rate not less than eighty (80%)
percent of the above minimum rate.

(b) Clerical or office employees may be employed at a rate of not
less than twenty ($20.00) dollars per week.

(c) Janitors, watchmen and firemen maintaining fires for heat-
ing buildings shall be paid at the rate of not less than twenty ($20.00)
dollars per week.

(d) Office boys or girls or messengers shall be paid not less than
at the rate of eighty (80%) percent of the minimum wage provided
in paragraph (c) of this section; provided that the number of such
office boys and girls or messengers thus paid shall be limited to five
(5%) percent of the total number of office employees, with a mini-
mum of two (2) such employees for each Member of the Industry.

(e) The rates of compensation on whatever basis computed, of all
employees receiving more than the minimum herein prescribed, shall
be equitably adjusted by all employers who have not heretofore made
such adjustment; provided, however, that in no case shall hourly
or piece rates be reduced as a result of such readjustment and in no
case shall the weekly earnings be reduced. The action taken whether
prior to or after the date of approval of this Code, shall be reported
by each Member of the Industry to the Code Authority and to the
Administrator on his request.

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

(g) A person whose earning capacity is limited because of age,
physical or mental handicap, or other infirmity, may be employed

546

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. 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, show-
ing the wages paid to, and the maximum hours of work for such
employees.

(h) This Article establishes a guaranteed rate of pay per hour
of employment regardless of whether the employee's compensation
is based on a time rate, piece work performance or otherwise.

Article V — General Labor Provisions

Section 1. No person under sixteen (16) years of age shall be em-
ployed in the Industry, nor anyone under eighteen (18) years of age
at operations or occupations hazardous in nature or dangerous 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 hazardous or dangerous 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 employee is of the required age.

Section 2. As required by Section 7 (a) of the Act, it is hereby
provided :

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

(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 provisions of the Act or of this Code.

Section 4. Every employer shall provide for the safety and health
of his employees at the place and during the hours of their employ-
ment. Standards of safety and health shall be submitted by the
Code Authority to the Administrator within six (6) months after
the effective date of this Code.

Section 5. No provisions in this Code shall supersede any State
or Federal law which imposes more stringent requirements on em-
ployers as to age of emplo}^ees, wages, hours of work, or as to safety,
health, or sanitary conditions, or insurance, or fire protection, or
general working conditions, than are imposed by this Code.

547

Section G. Each employer shall post, and thereafter maintain, in
conspicuous places accessible to all employees full copies of the pro-
visions pertaining to wages, hours and general provisions of labor
of this Code and any amendments or modifications which may later
be approved.

Section 7. Every employer shall make payment of all wages due
in lawful currency or by negotiable check therefor payable on de-
mand. No deduction from wages shall be made by any employer
for any payments for pensions, insurance, or sick benefits other than
those voluntarily paid by the wage earners or required by State laws.
Wages shall be paid at least at the end of every semi-monthly period,
and salaries at least at the end of every month. No employer shall
withhold wages.

Article VI — Administration

To further effectuate the policies of the Act, a Code Authority is
hereby constituted to cooperate with the Administrator in the admin-
istration 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 one (1)
representative of Members of the Industry who are not members of
the Association, providing they desire such representation, and sig-
nify their willingness to pay their pro rata share of the cost of
administering this Code, The representative of the non-members
of the Association shall be elected by a majority vote of the non-
members participating in such election. A meeting shall be duly
called for this purpose and votes may be cast in person, by proxy
or letter ballot. The Administrator, in his discretion, may appoint
not more than three (3) additional members (without vote) to rep-
resent the Administrator or such groups or interests as he may
designate.

Section 2. 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 associa-
tion, 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 3. In order that the Code Authority shall at all times be
truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may provide such
hearings as he may deem proper ; and thereafter if he shall find that
the Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an appro-
priate 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 adopt by-laws and rules and regulations for its procedure
and for the Administration of this Code, subject to the right of any
affected person to appeal to the Administrator.

(b) To obtain from Members of the Industry such information
and reports (sworn or unsworn as the Code Authority may specify)

548

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 directed by the Administrator.

(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
promulgated from time to time by the Administrator.

(e) To coordinate the administration of this Code with such codes,
if any, as may be adopted by any sub-division of this Industry or any
related industry, with a view to providing joint and harmonious
action on all matters of common interest, all with the approval of
the Administrator.

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

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

(h) To study the effect of the various provisions of this Code
upon the Industry and consider proposals for amendments and modi-
fications thereto, and make recommendations thereon from time to
time to the Administrator, which amendments or modifications, will
become effective as part of this Code upon approval of the Adminis-
trator after such hearing and notice as he may specify.

Section 5. Nothing contained in this Code shall constitute the
Members of the Code Authority partners for any purpose. Nor
shall this Code be construed to render any Member of the Code
Authority liable in any manner to anyone for any act of any other
member, officer, agent, or employee of the Code Authority. Nor
shall this Code be construed to render any Member of the Code
Authority, exercising reasonable diligence in the conduct of his
duties hereunder, liable to any one for any action or omission to act
under the Code, except for his own wilful misfeasance or non-
feasance.

Section 6. 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 by registered mail, postage
prepaid, addressed to such Member of the Industry, at his address
on file with the Secretary of the Code Authority.

Section 7. Members of the Industry shall be entitled to participate
in and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting
to and complying with the requirements of this Code and sustaining
their reasonable share of the expense of its administration. The
reasonable share of the expenses of its administration shall be de-
termined by the Code Authority, subject to review by the Adminis-
trator, on the basis of volume of business and/or such other factors
as may be deemed equitable to be taken into consideration.

549

Section 8. In addition to the information required to be submitted
to the Code Authority, there shall be furnished to government agen-
cies such statistical information as the Administrator may deem nec-
essary for the purposes recited in Section 3 (a) of the National In-
dustrial Recovery Act, and nothing contained herein shall relieve
any one of any existing obligation to furnish reports to government
agencies.

Section 9. 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 of the Industry. Thereafter all Members shall determine
and/or estimate costs in accordance with the principles of such
methods.

Section 10. If the Administrator shall determine that any action
of a Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by such Code
Authority or agency pending final action which shall not be 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.

Article VII — Trade Practices

The following practices constitute unfair methods of competition
for Members of the Industry, and are hereby prohibited :

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

(b) Commercial Bribery. — The giving, permitting to be given, or
directly offering to give, anything of value for the purpose of in-
fluencing or rewarding the action of any employee, agent, or repre-
sentative of another in relation to the business of the employer of
such 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 brib-
ery as hereinbefore defined.

(c) Secret Rebates. — Secretly offering or making an}- payment
or allowance of a rebate, refund, commission, credit, unearned dis-
count or excess allowance, whether in the form of money or other-
wise, for the purpose of influencing a sale, or the extension to any
customer of any special service or privelege not extended to all
customers of the same class.

(d) Espionage of Competitors. — Securing confidential informa-
tion concerning the business of a competitor by a false or misleading

550

statement or representation; by a false impersonation of one in
authority; by bribery or by any other unfair method.

(e) The dating of any invoice either earlier or later than the
actual date of delivery or withholding from or inserting in any in-
voice any items which otherwise make it a false record of a
transaction.

(f) The subcontracting of any work, in whole or in part, to any
empl'oj'ee, upon terms or conditions which directly or indirectly
may result in the payment to such employee of less than the mini-
mum hourly rates of pay prevailing for such class of work; and
ever}' employee so employed shall be informed in advance of the
minimum hourly rates to which he is entitled.

(g) The selling of products below the cost thereof except to meet
the selling price of any low cost producer or importer, whose prices
do not violate the Code; costs in all cases shall be determined in
accordance with a system of accounting as referred to in Section 9
of Article VI.

Article VIII — Home Work

After May 1, 1934, no employer shall have work done in the home
of a worker.

Within one month after the effective date of this Code, every
employer shall register with the Code Authority the name and ad-
dress of each person who performs homework for said employer,
directly or indirectly, and no work shall be given by any employer
to such person unless said person's name is registered with the
Code Authority.

Article IX — Modification

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

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

Article X — Price Increase

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 as may be required to meet the 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.

551
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 — Effective Date

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

Approved Code No. 368.
Registry No. 410-10.

Approved Code No. 369
CODE OF FAIR COMPETITION

FOR THE

EXPANDING AND SPECIALTY PAPER PRODUCTS

INDUSTRY

As Approved on March 26, 1934

ORDER

Approving Code of Fair Competition for the Expanding and
Specialty Paper Products Industry

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

NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise ; do hereby incorporate by reference said annexed
report and do find that said Code complies in all respects with the
pertinent provisions and will promote the policy and purposes of
said Title of said Act; and do hereby order that said Code of Fair
Competition be and it is hereby approved; provided, however, that
the provisions of Article VI, Sections 2 to 9 inclusive, insofar as they
prescribe a waiting period between the filing with the Code Authority
(i.e. actual receipt by the Code Authority) and the effective date of
revised price lists or revised terms and conditions of sale be and they
are hereby stayed pending my further order; provided, further, that
within ninety days I may direct that there be a further hearing on
such of the provisions of said Code as I may designate, and that any
order which I may make after such hearing shall have the effect of a
condition on the approval of this Code.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
Geo. L. Berry,

Division Administrator.

Washington, D.C.,

March 26, 1934.

49060° 425-153 34 (553)

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 Expanding and Specialty Paper Products Industry,
conducted in Washington on January 26, 1934, in accordance with
the provisions of Title I of the National Industrial Recovery Act.

HOURS AND WAGES

This Code provides a 40 hour week for factory workers with a
weekly tolerance of eight hours to be paid for as overtime, and lim-
ited to 12 weeks per year. The usual exceptions are made in regard
to nonproductive employees. Office employees are limited to an
average of 40 hours per week over an eight week period.

The minimum wage rate for hourly paid employees is 35^ per hour
for all employees engaged in hand folding, gumming and assembling
operations and the inspection connected with such operations and 400
per hour for all other hourly paid employees. Office employees will
receive a minimum wage of $15.00 per week.

OPEN PRICE PLAN

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

OTHER PROVISIONS

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

ECONOMIC EFFECT OF THE CODE

The Industry employed in 1929 about 1,000 persons and in the first
quarter of 1933 about 550 persons. Reports submitted by 13 repre-
sentative firms in the Industry show an increase in employment
between May and October 1933 of about 10%, indicating that there
were in the latter month about 600 persons employed in the Industry.
The total value of products of the Industry decreased from 1929 to
1933 by about 30%. To decrease the schedule of working hours suffi-
ciently to attain the 1929 total of employees would increase the cost
of production to such an extent as to endanger the Industry.

FINDINGS

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

(554)

555

I find that:

(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of
industry for the purpose of cooperative action among the trade
groups, by inducing and maintaining united, action of labor and
management under adequate governmental sanction and supervision,
by eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be
temporarily required), by increasing the consumption of industrial
an<2 agricultural products through increasing purchasing power, by
reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.

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

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

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

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

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

For these reasons this Code has been approved.
Respectfully,

Hugh S. Johnson,

Adnuiutrator.
March 26, 1934.

CODE OF FAIR COMPETITION FOR THE EXPANDING
AND SPECIALTY PAPER PRODUCTS INDUSTRY

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

Article I — Definitions \

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

" Industry " : The manufacture of hand-fold bellows expanding
wallets, hand-fold file folders and pockets, hand-fold expanding files,
hand-fold expanding mailing wallets and other hand-fold expanding
designs, principally from wood pulp, jute and hemp rope fibre papers,
(mostly of the familiar reddish-brown color), cloth and canvas cov-
ered papers, imitation leather, etc.

" Member " : A natural person, partnership, corporation, associa-
tion, trust, trustee, trustee in bankruptcy, receiver, or other form of
enterprise, engaged in such Industry.

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

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

Article II — Organization and Administration

Section 1. There shall forthwith be constituted a Code Authority
consisting of five (5) persons to be elected at an Industry meeting
called for such purpose within thirty (30) days after the approval
of this Code.

Section 2. Immediately upon approval of this Code, the Chair-
man of the Code Committee shall notify all known members of the
Industry of such meeting at least ten (10) days prior thereto.

Section 3. In addition to the membership as provided in Section 1
of this Article, the Administrator may designate one or more persons
to serve on the Code Authority for such terms as he may fix. The
person or persons so designated shall have no vote and shall serve
without compensation from the Industry.

Section 4. Each trade association, directly or indirectly, partici-
pating 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.

(556)

557

Section 5. In order that the Code Authority shall at all times be
truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may prescribe
such hearings as he may deem proper and thereafter, if he shall find
that the Code Authority is not truly representative or does not in
other respects comply with the provisions of the Act, may require an
appropriate modification in the method of selection of the Code
Authority.

Section 6. 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 considera-
tion by the Code Authority or agency pending final action which
shall not be effective unless the Administrator approves or unless he
shall fail to disapprove after thirty (30) days' notice to him of in-
tention to proceed with such action in its original or modified form.

Section 7. 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 8. The Code Authority shall have power to investigate
alleged violations of this Code and acts or courses of conduct by
any member which are or appear to be contrary to the policy of the
Act or which tend or may tend to render ineffective this Code and
to report the same with recommendations to the Administrator.

Section 9. The Code Authority shall 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 or agencies shall
at all times be subject to and comply with the provisions hereof.

Section 10. The Code Authority may appoint a Trade Practice
Committee which shall meet with the Trade Practice Committees
under such other Codes as may be related to this Industry for the
purpose of formulating Fair Trade Practices to govern the relation-
ships between production and distribution employers under this
Code and under such others to the end that such Fair Trade Prac-
tices may be proposed to the Administrator as amendments to this
Code and such other Codes.

Section 11. 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 here-
under, be liable to any one for any action or omission to act under
this Code, except for his own wilful misfeasance or non-feasance.

558

Article III — Hours of Labor

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

SCHEDULE OF WORKING HOURS

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

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

(c) Engineers, firemen, electricians, filter plant employees, elec-
tric and hydroelectric operators: One hundred sixty -eight (168)
hours in any period of four (4) consecutive weeks, provided, how-
ever, that time worked in excess of nine (9) hours in any one day
or forty-five (45) hours in any one week shall be paid for as not
less than time and one-half.

(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 in any twelve (12) weeks
of each calendar year, provided that all time worked in excess of
eight (8) hours in any one day or forty (40) hours in any one week
shall be paid for as not less than time and one-half, and provided,
further, that no employee shall be required or permitted to work in
excess of ten (10) hours in any one day or forty-eight (48) hours
in any one week.

(e) Employees regularly engaged in a managerial, executive or
supervisory capacity and their personal secretaries, 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.

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

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

Section 4. No female employee shall be required or permitted to
work between the hours of 10 : 00 P. M. and 6 : 00 A. M.

559

Section 5. No emplo3yee of the classes included under Section 1
(b), (c), (d) and (f) of this Article shall be required or permitted
to work more than six (6) days in any seven (7) consecutive days.

Article IV — Wages

Section 1. The minimum rate of wage of any employee, other than
office and clerical employees, employed in any plant, mill or factory,
or on work connected with the operation of any such plant, mill or
factory, shall be as follows : 350 per hour for all employees engaged
in hand-folding, gumming and assembling operations and the inspec-
tion connected with such operations ; 40c1 per hour for all other such
employees.

Section 2. The minimum rate of wage of any office or clerical
employee shall be $15.00 per week.

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. The wage rates of all employees receiving more than
the minimum rates herein prescribed, which have not been adjusted
since June 15, 1933, shall be reviewed and such adjustments made
therein as are equitable in the light of all the circumstances, but in
no case shall they be decreased. Within sixty (60) days after the
effective date hereof the Code Authority shall report to the Admin-
istrator the action taken by all members under this Section.

Section 5. 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 6. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
employees.

Section 7. A person whose earning capacity is limited because of
age, physical or mental handicap, or other infirmity, may be em-
ployed on light work at a wage below the minimum established by
this Code if the employer obtains from the state authority, desig-
nated by the United States Department of Labor, a certificate au-
thorizing 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.

Article V — General Labor Provisions

560

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 xas to age if he shall have on file a certificate or permit duly
signed by the authority in such State empowered to issue employ-
ment or age certificates or permits, showing that the employee is of
the required age.

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

Section 3. No provision in this Code shall supersede any State or
Federal law which imposes on employers more stringent require-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general working conditions, or insurance or fire
protection, than are imposed by this Code.

Section 4. No employer shall reclassify employees or duties or
occupations performed or engage in any other subterfuge for the
purpose of defeating the purposes or provisions of the Act or of this
Code.

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

Section 6. Every employer shall make reasonable provisions for
the safety and health of 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 Admin-
istrator within six (6) months after the effective date of this Code,
a plan for the stabilization and regularization of employment.

Section 8. The manufacture or partial manufacture of any prod-
uct of the Industry in homes shall be prohibited.

Article VI 1 — Accounting- Selling

Section 1. The Code Authority shall cause to be formulated an
accounting system and methods of cost finding and/or estimating
capable of use by all members of the Industry. After such system
and methods have been formulated and approved by the Adminis-
trator, full details concerning them shall be made available to all

1 See paragraph 2 of order approving this Code.

561

members. Thereafter all members shall determine and/or estimate
costs in accordance with the principles of such methods.

Section 2. The Code Authority may from time to time determine
that an open price plan of selling such product or products of the
Industry as it shall specify shall be put into effect on such date as
it shall fix. Notice of such determination shall be announced to
all known members of the Industry who manufacture such products
not less than thirty (30) days prior to the date so fixed.

Section 3. At least ten (10) days prior to such date, every such
member shall file with the Code Authority a schedule of prices and
terms of sale for all such products or, in the alternative, shall be
deemed to have filed a schedule conforming in respect to price and
terms of sale with the schedule at any time on file which states the
lowest price and the most favorable terms.

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

Section 5. A revised schedule or schedules, or a new schedule or
schedules, or a notice of withdrawal of a schedule previously filed,
may be filed by a member with the Code Authority at any time, pro-
vided, however, that any member who withdraws a schedule without
substituting a new schedule therefor shall be deemed to have filed a
schedule conforming in respect to price and terms of sale with the
schedule at any time thereafter on file which states the lowest price
and the most favorable terms. Any schedule or notice filed here-
under, shall become effective five (5) days after the date of filing,
provided however, that an increased price may become effective at
such earlier date as the member filing the same shall fix.

Section 6. The Code Authority shall promptly supply all mem-
bers of the Industry who manufacture any particular product with
copies of all schedules, revised schedules, and notices of withdrawal,
which pertain to such product. Immediately upon receipt of infor-
mation relative to the withdrawal of a price for any product, any
member may file notice of withdrawal of his own price for the same
product effective as of the same date as the notice of withdrawal of
such other member. Immediately on receipt of information that a
schedule then on file has been revised, or that a new schedule has
been filed, any member may file a revised schedule conforming as to
price and terms to the schedule of such other member, and effec-
tive on the same date, or he may notify the Code Authority that he
adopts as his own the schedule of such other member. In the latter
event, he shall be deemed to have filed a revised schedule 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 any time, shall be such as to permit the sale
of any product at less than the cost thereof to such member deter-
mined in the manner provided in Section 11 hereof, provided, how-
ever, that any member may by notice to the Code Authority, adopt

562

as his own a lower price filed by another designated member. Such
adoption shall become automatically void upon the withdrawal or
revision upward of the price adopted.

Section 8. No member, who shall have filed a price or adopted as
his own a price filed by another member for any product of the In-
dustr}^, shall sell such product for less than such price or upon terms
or conditions more favorable than stated in such price schedule. No
member, who shall have failed to file a price for any product for
which the open price plan is in effect, shall sell such product at a
lower price or on terms more favorable than the lowest price and most
favorable terms stated in any price schedule for such product then
on file.

Section 9. The Code Authority shall furnish at cost to any inter-
ested person or persons requesting them, copies of any price schedules
which have been filed with it. Such price schedules shall be made
available to such person or persons at the same time they are sent to
members.

Section 10. No member shall sell any product of the Industry for
which no open price plan is in effect at less than the cost thereof to
such member determined as provided in Section 11 hereof, except to
meet the price of a competitor whose price does not violate such
Section.

Section 11. Cost, for the purposes of this Article, shall be deter-
mined pursuant to the method of accounting and costing prescribed
as provided in Section 1 hereof as soon as such method is adopted
and approved, and theretofore pursuant to the method employed by
such member subject to such preliminary rules as the Code Authority
shall from time to time prescribe with the approval of the
Administrator.

Section 12. Every member shall upon the request of the Code
Authority furnish a designated agency of the Code Authority, in
respect to closed transactions only, with complete information in
regard to any quotation, order, contract or sale of any product of the
Industry, including information as to specifications, quantities, price,
conditions of storage, transportation or delivery, terms of billing,
cash or trade discounts allowed, and other pertinent facts relating to
such quotation, order, contract or sale.

Section 13. Nothing herein contained shall be construed to pre-
vent the disposition of distress merchandise required to be sold to
liquidate a defunct or insolvent business or of discontinued lines,
damaged goods or seconds, in such manner, at such price and on
such terms and conditions as the member shall publish with the
Code Authority prior to the sale thereof.

Article VII — Reports and Statistics

Section 1. Each member shall prepare and file with an impartial
agent, designated by the Code Authority, at such time and in such
manner as it may prescribe, any 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, hour of work, and other matters, as the Code

563

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
designated 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 a manner
as to avoid the disclosure of confidential information. The Code
Authority shall arrange in such manner as it may determine for the
current publication of Industry statistics to members.

Section 3. The Code Authority shall make such reports to the
Administrator as he may from time to time require.

Section 4. In order to assist in making effective the reports from
the Industry and in eliminating unfair competition, the Code Au-
thority shall make studies with a view to the establishment of classi-
fications, dimensional standards, quality specifications and informa-
tive labelings for products of the Industry.

Section 5. In addition to information required to be submitted
to the Code Authority there shall be furnished to Government Agen-
cies such statistical information as the Administrator may deem
necessary for the purposes recited in Section 3 (a) of the Act.
Nothing contained in this Code shall relieve any member of any
existing obligations to furnish reports to any Government Agency.

Article VIII — Monopolies

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

Article IX — Recommendations

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

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

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

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

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

564

Section 2. For the purpose of assisting the Code Authorities of
the Paper Manufacturing and/or Converting Industries in the ad-
justment of all labor disputes and labor complaints arising within
such Industries, the Code Authority shall consider the advisability
of creating a Joint Industrial Relations Board for such 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, after such notice and
hearing as he shall prescribe, shall have the same force and effect as
other provisions of this Code.

Article X — Trade Practices

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

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

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

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

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

(e) No member shall give, permit to be given, or directly offer to
give, anything of value for the purpose of influencing or rewarding
the action of any employee, agent, or representative of another in
relation to the business of the employer of such employee, the prin-
cipal of such agent or the represented party, without the knowledge
of such employer, principal, or party. The foregoing provision shall
not be construed to prohibit free and general distribution of articles
commonly used for advertising 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) In furtherance of fair competition and to prevent discrimina-
tion in prices, manufacturers agree that in sales either to distributors
or consumers no cash discount shall be given in excess of two
percent (2%). Such cash discount will be strictly limited to pay-
ments not to exceed fifteenth of month following date of shipment.

Article XI — General Provisions

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

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

Section 3. Such of the provisions of this Code as are not required
to be included therein by the Act, may, with the approval of the

565

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 No. 369.
Registry No. 409-08.

Approved Code No. 370
CODE OF FAIR COMPETITION

FOR THE

OPEN PAPER DRINKING CUP AND ROUND NEST-
ING PAPER FOOD CONTAINER INDUSTRY

As Approved on March 26, 1934

ORDER

Approving Code of Fair Competition for the Open Paper Drinking
Cup and Round Nesting Paper Food Container Industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Open Paper Drinking Cup and Round
Nesting Paper Food Container Industry, and hearings having been
duly held thereon and the annexed report on said Code, containing
findings with respect thereto, having been made and directed to the
President :

NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. G543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act ; and do hereby order that said Code
of Fair Competition be and it is hereby approved; provided, how-
ever, that the provisions of Article VI, Sections 2 to 9 inclusive,
insofar as they prescribe a waiting period between the filing with the
Code Authority (i.e. actual receipt by the Code Authority) and the
effective date of revised price lists or revised terms and conditions
of sale be and they are hereby stayed pending my further order;
provided further, that within ninety daj^s I may direct that there be
a further hearing on such of the provisions of said Code as I may
designate, and that any order which I may make after such hearing
shall have the effect of a condition on the approval of this Code.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
Geo. L. Berry,

Division Administrator.

Washington, D.C.,

March 26, 193Jf.

49137° 425-1G2 34 (567)

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 Open Paper Drinking Cup and Round Nesting Paper
Food Container Industry, conducted in Washington on November
10, 1933, in accordance with the provisions of Title I of the National
Industrial Recovery Act.

HOURS AND WAGES

This Code provides a 40 hour week for factory workers with a
weekly tolerance of eight hours to be paid for- as overtime, and
limited to 12 weeks per year. The usual exceptions are made in
regard to nonproductive employees. Office employees are limited to
an average of 40 hours per week over a four-week period.

The minimum wage rate for hourly paid employees is 400 per hour
for males and 33p per hour for females. Office employees will receive
a minimum wage of $15.00 per week.

OPEN PRICE PLAN

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

OTHER PROVISIONS

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

ECONOMIC EFFECT OF THE CODE

The Industry employed in 1930 approximately 2,500 persons and
in the first six months of 1933 approximately 2,300 persons. In the
week of July 17, 1933 during the highest peak period in the year in
the Industry, 85% of the factory employees worked more than 40
hours per week. The effect of the Code will be to employ about 280
additional persons to maintain production under similar conditions.

The total increase in payrolls as a result of the Code will be
about 8%.

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:

(5G8)

569

(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 sanction and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be 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 Asso-
ciation is an industrial Association truly representative of the afore-
said Industry; and that said Association imposes no inequitable
restrictions on admission to membership therein.

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

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

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

For these reasons this Code has been approved.
Respectfully,

Hugh S. Johnson,

A dminis trat or,
March 26, 1934.

CODE OF FAIR COMPETITION FOR THE OPEN PAPER
DRINKING CUP AND ROUND NESTING PAPER FOOD
CONTAINER INDUSTRY

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

Article I — Definitions

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

" Industry *' — The manufacture of open paper drinking cups, and
round nesting paper containers for the packing of food and other
products.

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

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

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

Article II — Organization and Administration

Section 1. There shall forthwith be constituted a Code Authority
of the Open Paper Drinking Cup and Round Nesting Paper Food
Container Industry which shall consist of seven (7) members se-
lected in the manner hereinafter provided, together with such person
or persons as may be designated by the Administrator. The person
or persons so designated shall serve without vote and without com-
pensation from the Industry.

Section 2. The Executive Director of the Cup and Container In-
stitute, Incorporated, shall forthwith call an Industry meeting for
the purpose of electing the Industry members of the Code Authority.
At least ten (10) days' written or telegraphic notice of such meeting
shall be given by him to each known member. A member may elect
to be present either in person or by proxy and shall be entitled to one
vote for each candidate.

Section 3. The election of the members of the Code Authority
shall be conducted in accordance with the following procedure :

(a) The first member shall be elected from among the members
whose annual net sales, by dollar value, of the products of the
Industry for the preceding year were $1,500,000 or more.

(b) Each succeeding member shall be elected, one by one, in like
fashion from among those members whose annual net sales, by dollar

(570)

571

value, of the products of the Industry for said year were respec-
tively :

(1) $1,000,000 or more

(2) $750,000 or more

(3) $500,000 or more

(4) $250,000 or more

(5) $100,000 or more

(6) $10,000 or more

Section 4. The Executive Director shall determine, upon the basis
of figures furnished to him by members and announce at said meet-
ing, previous to nominations, the members eligible for such nomi-
nations.

Section 5. Any member may nominate a candidate for member-
ship on the Code Authority and a candidate elected in accordance
with the foregoing shall serve for one year or until his successor is
duly selected.

Section 6. The Code Authority by a majority vote of its member-
ship at any regular or special meeting shall fill any vacancies that
may occur in its membership. The Administrator may at any time
prescribe a different method for selecting the Industry members of
the Code Authority, and thereafter such members shall be chosen
in the manner so prescribed.

Section 7. The Cup and Container Institute, Inc., together with
its facilities, shall be utilized by the Code Authority for carrying
on its work and activities provided that nothing herein shall relieve
the Code Authority of its duties or responsibilities under this Code
and that such trade association shall at all times be subject to and
shall comply with the provisions hereof.

Section 8. 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 Admin-
istrator may require that such action be suspended to afford an
opportunity for investigation of the merits of such action and further
consideration by the Code Authority or agency pending final action
which shall not be effective unless the Administrator approves or
unless he shall fail to disapprove after thirty (30) days' notice to
him of intention to proceed with such action in its original or
modified form.

Section 9. 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 10. The Code Authority shall have power to investigate
alleged violations of this Code and acts or courses of conduct by any
member which are or appear to be contrary to the policy of the Act
or which tend or may tend to render ineffective this Code and to
report the same with recommendations to the Administrator.

Section 11. The Code Authority shall cooperate with the Admin-
istrator 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.

572

Section 12. The Code Authority may appoint a Trade Practice
Committee which shall meet with the Trade Practice Committees
under such other Codes as may be related to this Industry for the
purpose of formulating Fair Trade Practices to govern the relation-
ships between production and distribution 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.

Article III — Hours of Labor

•kyyees in the Industry shall n
ermitted to work hours in excess of the limits prescribed in the

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

SCHEDULE OF WORKING HOURS

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

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

(c) Engineers, firemen and 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-five (45) hours in any one week shall be paid for as not less
than time and one-third.

(d) All other laborers, mechanical workers or artisans employed
in any plant, mill or factory or on work connected with the operation
of such plant, mill or factory: Eight (8) hours in any one day and
forty (40) hours in any one week, provided, however, that these
maximum limits may be exceeded in any twelve (12) weeks of
each calendar year, provided, that all time worked in excess of eight
(8) hours in any one day and forty (40) hours in any one week
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, executive or
supervisory capacity 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 one hundred and sixty (160) hours in any
period of four (4) consecutive weeks.

Section 2. Xo employee of the classes included under Sections 1
(b), 1 (c), 1 (d) and 1 (f) of this Article shall be required or
permitted to work more than six (6) days in any period of seven
(7) consecutive days.

Section 3. 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-

573

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

Section 4. No employer shall 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.

Section 5. No female employee shall be required or permitted
to work between the hours of 10 P. M. and 7 A. M.

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
factory or on work connected with the operation of any such
plant, mill or factory shall be as follows :
Male, 40 cents per hour
Female, 33 cents per hour

Section 2. The minimum rate of wage for office or clerical
employees shall be fifteen ($15.00) dollars per week. Part-time
employees covered by the provisions of this Section shall be paid at
the rate of not less than thirty-seven and one-half (371/2^) cents
per hour.

Section 3. This Article establishes a minimum rate of pay which
shall apply irrespective of whether an employee is actually com-
pensated on time rate, piece work or other basis.

Section 4. The wage rates of all employees receiving more than
the minimum rates herein prescribed shall be reviewed and such
adjustments made therein as are equitable in the light of all the
circumstances, 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.

Section 6. Female employees performing substantially the same
work as male employees, shall receive the same rate of pay as male
employees.

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 certificate
authorizing his employment on such basis. Each member shall file
with the Code Authority a list of all such persons employed by him.

Article V — General Labor Provisions

Section 1. No person under sixteen (16) years of age shall be
employed in the Industry. Xo person under eighteen (18) years of
age shall be employed at operations or occupations which are

574

hazardous in nature or dangerous to health. The Code Authority
shall submit to the Administrator within sixty (60) days after the
effective date of this Code a list of such operations or occupations.
In any State an employer shall be deemed to have complied with this
provision as to age if he shall have on file a certificate or permit duly
signed by the authority in such State empowered to issue employment
or age certificates or permits, showing that the employee is of the
required age.

Section 2. Employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free 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. 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 choos-
ing. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.

Section 3. No provision in this Code shall supersede any State
or Federal law which imposes on employers more stringent require-
ments as to age of employees, 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. 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
Administrator. The Code Authority shall also submit to the Ad-
ministrator within six (6) months after the effective date of this
Code, a plan for the stabilization and regular ization of employment.

Section 8. The manufacture or partial manufacture of any product
of the Industry in homes shall be prohibited.

Article VI x — Accounting — Selling

Section 1. The Code Authority shall, as soon as practicable, 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

1 See paragraph 2 of order approving this Code.

575

by the Administrator, 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 2. The Code Authority may from time to time determine
that an open price plan of selling such product or products of
the Industry as it shall specify shall be put into effect on such date
as it shall fix. Notice of such determination shall be announced to
all known members of the Industry who manufacture such products
not less than thirty (30) days prior to the date so fixed.

Section 4. All such schedules shall be in such form as the Code
Authority shall prescribe and shall contain all information necessary
to permit any interested person to determine the exact net price
per unit after all discounts, brokerage fees, price differentials or
other considerations granted for services rendered in warehousing or
distributing such products, or other deductions have been made,
whether pertaining to a single order, a commitment for future
delivery, or a contract. All such original schedules shall become
effective on the date fixed by the Code Authority as provided in
Section 2 hereof.

Section 5. An original schedule, a revised schedule or schedules,
or a new schedule or schedules, or a notice of withdrawal of a
schedule previously filed, may be filed by a member with the Code
Authority at any time, provided however, that any member who
withdraws a schedule without substituting a new schedule therefor
shall be deemed to have filed a schedule conforming in respect to
price and terms of sale with the schedule at any time thereafter on
file which states the lowest price and the most favorable terms.
Any schedule or notice filed hereunder, shall become effective five
(5) days after the date of filing, provided, however, that an in-
creased 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 mem-
bers of the Industry who manufacture any particular product with
copies of all schedules, revised schedules, and notices of withdrawal,
which pertain to such product. Immediately upon receipt of infor-
mation relative to the withdrawal of a price for any product, any
member may file notice of withdrawal of his own price for the same
product effective as of the same elate 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 elate, 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.

576

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 that the cost thereof to such member
determined in the manner provided in Section 11 hereof, provided,
however, that any member may by notice to the Code Authority,
adopt as his own a lower price filed by another designated member.
Such adoption shall become automatically void upon the withdrawal
or revision upward of the price adopted.

Section 8. No member, who shall have filed a price or adopted as
his own a price filed by another member for any product of the
Industry, shall sell such product for less than such price or upon
terms or conditions more favorable than stated in such price sched-
ule. No member, who shall have failed to file a price for any
product for which the open price plan is in effect, shall sell such
product at a lower price or on terms more favorable than the 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 inter-
ested person, whether member or non-member requesting them,
copies of any price schedules which have been filed with it. Such
price schedules shall be made available to non-members at the same
time that they are sent to members.

Section 10. No member shall sell any product of the Industry for
which no open price plan is in effect at less than the cost thereof to
such member, determined as provided in Section 11 hereof, except
to meet the price of a competitor whose price does not violate such
Section.

Section 11. Cost, for the purposes of this Article, shall be deter-
mined pursuant to the method of accounting and costing prescribed
as provided in Section 1 hereof as soon as such method is adopted and
approved, and theretofore pursuant to the method employed by such
member subject to such preliminary rules as the Code Authority
shall from time to time prescribe with the approval of the
Administrator.

Section 12. Every member shall upon the request of the Code
Authority furnish a designated agency of the Code Authority in
respect to closed transactions only, with complete information in
regard to any quotation, order, contract, or sale of any product of
the Industry, including information as to specifications, quantities,
price, conditions of storage, transportation or delivery, terms of
billing, cash or trade discounts allowed and other pertinent facts
relating to such quotation, order, contract or sale.

Section 13. Every member filing a schedule or notice hereunder
shall deliver to the Code Authority without expense such number
of copies thereof as shall be necessary to enable the Code Authority
to supply one copy thereof to each member of the Industry and no
such schedule or notice shall be deemed to have been filed until such
number of copies shall have been received by the Code Authority.

Section 14. Nothing herein contained shall be construed to pre-
vent the disposition of distress merchandise required to be sold to
liquidate a defunct or insolvent business or of discontinued lines,
damaged goods or seconds, in such manner, at such price and on

577

such terms and conditions as a member shall publish with the Code
Authority, prior to the sale thereof.

Section 15. Nothing herein contained shall be construed to pre-
vent the fulfillment of a bona fide contract existing on the effective
date of this Code.

Section 16. Nothing herein contained shall be construed to permit
discrimination between like purchasers for like quantities.

Section 17. The Code Authority may, at any time, suspend the
open price plan of selling either in its entirety or in so far as it ap-
plies to any specified product or products of the Industry.

Article VII — Reports and Statistics

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 a manner
as to avoid the disclosure of confidential information. The Code
Authority shall arrange in such manner as it may determine for the
current publication of Industry statistics to members.

Section 3. The Code 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 con-
tained in this Code shall relieve any member of any existing obliga-
tions to furnish reports to any Government Agency.

Article VIII — Monopolies

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

Article IX — Recommendations

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

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

578

(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 employ-
ment.

(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. Recommendations made pursuant to Section 1 hereof
when approved by the Administrator after such notice and hearing as
he shall prescribe, shall have the same force and effect as other
provisions of this Code.

Article X — Trade Practices

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

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

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

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

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

(e) No member shall give, permit to be given, or directly offer to
give, anything of value for the purpose of influencing or rewarding
the action of any employee, agent or representative of another in re-
lation 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.

Article XI — General Provisions

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

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

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

579

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 or
this Code or any conditions imposed by him upon his approval
thereof.

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

Approved Code No. 370.
Registry No. 406-12.

Approved Code No. 371
CODE OF FAIR COMPETITION

FOR THE

SANITARY MILK BOTTLE CLOSURE INDUSTRY

As Approved on March 26, 1934

ORDER

Approving Code of Fair Competition for the Sanitary Milk
Bottle Closure 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 Milk Bottle Closure 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 VI, Sections 2 to 9 inclusive,
insofar as they prescribe a waiting period between the filing with
the Code Authority (i.e. actual receipt by the Code Authority) and
the effective date of revised price lists or revised terms and condi-
tions of sale be and they are hereby stayed pending my further
order; provided further, that within ninety days I may direct that
there be a further hearing on such of the provisions of said Code
as I may designate, and that any order which I may make after
such hearing shall have the effect of a condition on the approval
of this Code.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
Geo. L. Berry,

Division Administrator.

Washington, D.C.,

March 26, 1934,.

49138° 425-163 34 ( 5&1 )

REPORT TO THE PRESIDENT

The President,

The White House.
Sir: This is a report of the hearing on the Code of Fair Com-
petition for the Sanitary Milk Bottle Closure Industry, conducted
in Washington on November 29, 1933, in accordance with the pro-
visions of Title I of the National Industrial Recovery Act.

HOURS AND WAGES

This Code provides a 40 hour week for factory workers with a
weekly tolerance of eight hours to be paid for as overtime, and limit-
ed to 12 weeks per year. The usual exceptions are made in regard
to non-productive employees. Office employees are limited to an
average of 40 hours per week over an eight week period.

The minimum wage rate for hourly paid employees is 400 per hour
for males and 35c1 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 300 persons and
about the same number in 1933 with an increase of two plants between
the latter year and 1930. To maintain the level of production of
the week of March 18. 1933 when over 35% of the factory employees
worked an average of 45 hours or more the effect of the Code will
be to require 10% more emploj^ees.

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

(582)

583

(fiommerce 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 full-
est possible utilization of the present productive capacity of indus-
tries, by avoiding undue restriction of production (except as may be
temporarily required), by increasing the consumption of 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 employes not more than 50,000 em-
ployees and is not classified by me as a major industry.

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

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

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

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

For these reasons this Code has been approved.
Respectfully,

Hugh S. Johnson,

Administrator,
March 26, 1934.

CODE OF FAIE COMPETITION FOR THE SANITARY
MILK BOTTLE CLOSURE INDUSTRY

Article I — Definitions

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

" Industry " : The manufacture of sanitary milk bottle closures,
and including the manufacture, sale or lease, by the manufacturer of
such closures, of machinery for applying same.

" Member " : A natural person, partnership, corporation, asso-
ciation, trust, trustee, trustee in bankruptcy, receiver, or other form
of enterprise, engaged in such Industry.

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

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

Article II — Organization and Administration

Section 1. There shall forthwith be constituted a Code Authority
of the Sanitary Milk Bottle Closure Industry which shall consist of
three (3) persons elected at an Industry meeting called for such pur-
pose within fifteen (15) da}^s after the approval of this Code.

Section 2. The Chairman of the Code Committee shall notify all
known members of the Industry of such meeting at least ten (10)
days prior thereto.

Spxtion 3. In addition to the membership as provided in Section 1
of this Article, the Administrator may designate one or more persons
to serve on the Code Authority for such term as he may fix. The
person or persons so designated shall have no vote and shall serve
without compensation from the Industry.

Section 4. Each trade association directly or indirectly participat-
ing 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.

Section 5. In order that the Code Authority shall at all times be
truly representative of the Industry and in other respects comply
with the provisions of the Act. the Administrator may prescribe such

(584)

585

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.

Section 6. 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 consider-
ation 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 7. The Code Authority shall 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 or agencies shall at all times be
subject to and comply with the provisions hereof.

Section 8. 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 9. The Code Authority may appoint a Trade Practice
Committee to meet with the Trade Practice Committees under such
other Codes as may be related to this Industry for the purpose of
formulating Fair Trade Practices to govern the relationships
between production and distribution 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.

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 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 any one for any action or omission to act under this Code,
except for his own willful misfeasance or non-feasance.

Article III — Hours of Labor

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

schedule of working hours

586

fb) Chauffeurs, truckdrivers and their helpers: One hundred
elgnty (180) hours in any period of four (4) consecutive weeks, but
not to exceed fifty-four (54) hours in any one week, provided, how-
ever, that time worked in excess of nine (9) hours in any one day or
forty-five (45) hours in any one week shall be paid for as not less
than time and one-third.

(o) Engineers, firemen and electricians: One hundred sixty-eight
(168) hours in any period of four (4) consecutive weeks, but not to
exceed fifty-four (54) hours in any one week, provided, however,
that time worked in excess of nine (9) hours in any one day or
forty-five (45) hours in any one week shall be paid for as not less
than time and one-third.

(d) All other laborers, mechanical workers or artisans employed
in any plant, mill or factory, or on work connected with the operation
of such plant, mill or factory: Eight (8) hours in any one day and
forty (40) hours in any one week, provided, however, that these
maximum limits may be exceeded in any twelve (12) weeks of each
calendar year, provided, that all time worked in excess of eight (8)
hours in any one day or forty (40) hours in any one week 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) Executives and other employees regularly engaged in a super-
visory capacity and receiving thirty-five ($35.00) dollars or more
per week, outside salesmen and outside servicemen: No limitation.

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

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

Section 4. No female employee shall be required or permitted to
work between the hours of 10 : 00 P.M. and 6 : 00 A.M.

Section 5. No employee of the classes included under Section 1
(b), (c), (d) and (f) of this Article shall be required or permitted
to work more than six (6) days in any seven (7) consecutive days.

Article IV — Wages

Section 1. The minimum rate of wage of any employee, other
than office and clerical employees, employed in any plant, mill or
factory, or on work connected with the operation of any such plant,
mill or factory, shall be as follows: Male labor, 40 cents per hour;
Female labor, 35 cents per hour.

587

Section 2. The minimum rate of wage of any office or clerical
employee shall be sixteen ($16.00) dollars per week. Part-time em-
ployees covered by the provisions of this Section shall be paid at
the rate of not less than forty (40$) cents 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
employees. The Code Authority shall within ninety (90) days after
the effective date of this Code file with the Administrator a descrip-
tion of all occupations in the Industry in which both men and women
are employed.

Section 5. The wage rates of employees receiving more than the
minimum rates herein prescribed shall be reviewed and equitably
adjusted, provided that such adjustments have not already been made
in anticipation of the approval of this Code, and provided, further,
that in no case shall such adjustments decrease the wage rates paid
such employees. Within sixty (60) days after the effective date
hereof, the Code Authority shall report to the Administrator the
action taken by all members of the Industry under this Section.

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

Section 7. A person whose earning capacity is limited because of
age, physical or mental handicap or other infirmity, may be em-
ployed on light work at a wage below the minimum established by
this Code if the employer obtains from the State authority, desig-
nated by the United States Department of Labor, a certificate author-
izing such person's employment at such wage 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, show-
ing the wages paid to and the maximum hours of work for such
employees.

Article V — General Labor Provisions

Section 1. No person under sixteen (16) years of age shall be
employed in the Industry. No person under eighteen (18) years of
age shall be employed at operations or occupations which are haz-
ardous in nature or dangerous to health. The Code Authority shall
submit to the Administrator within sixty (60) days after the effective
date of this Code a list of such operations or occupations. In any
State an employer shall be deemed to have complied with this provi-
sion as to age if he shall have on file a certificate or permit duly
signed by the authority in such State empowered to issue employ-
ment or age certificates or permits, showing that the employee is of
the required age.

Section 2. Employees shall have the right to organize and bargain
collectively through representatives of their own choosing and shall

588

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

Section 3. No provision in this Code shall supersede any State
or Federal law which imposes on employers more stringent require-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general working conditions, or insurance or fire
protection, than are imposed by this Code.

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

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.

Article VI ' — Accounting — Selling

Section 1. The Code Authority shall cause to be formulated an
accounting system and methods of cost finding and/or estimated ca-
pable 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 and/or estimate costs in
accordance with the principles of such methods.

Section 2. The Code Authority may from time to time determine
that an open price plan of selling such product or products of the
Industry as it shall specify shall be put into effect on such date as
it shall fix. Notice of such determination shall be announced to all
known members of the Industry who manufacture such products not
less than thirty (30) days prior to the date so fixed.

1 See paragraph 2 of order approving this Cod«.

589

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

Section 5. A revised schedule or schedules, or a new schedule or
schedules, or a notice of withdrawal of a schedule previously filed,
may be filed by a member with the Code Authority at any time, pro-
vided, however, that any member who withdraws a schedule without
substituting a new schedule therefor shall be deemed to have filed a
schedule conforming in respect to price and terms of sale with the
schedule at any time thereafter on file which states the lowest price
and the most favorable terms. Any schedule or notice filed here-
under shall become effective five (5) days after the date of filing,
provided, however, that an increased price may become effective at
such earlier date as the member filing the same shall fix.

Section 6. The Code Authority shall 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, an}' 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 ma}' file a revised schedule conforming as to price and
terms to the schedule of such other member and effective on the same
date, or he may notify the Code Authority that he adopts as his own
the schedule of such other member. In the latter event, he shall be
deemed to have filed a revised schedule conforming to the revised
schedule of such other member.

Section 7. No such schedule of prices and terms of sale filed by
any member or in effect at any time, shall be such as to permit the
sale of any product at less than the cost thereof to such member
determined in the manner provided in Section 11 hereof, provided,
however, that any member may by notice to the Code Authority,
adopt as his own a lower price filed by another designated member.
Such adoption shall become automatically void upon the withdrawal
or revision upward of the price adopted.

590

which the open price plan is in effect, shall sell such product at a
lower price or on terms more favorable than the lowest price and
most favorable terms stated in any price schedule for such product
then on file.

Section 10. No member shall sell any product of the Industry foi
which no open price plan is in effect at less than the cost thereof to
such member determined as provided in Section 11 hereof, except to
meet the price of a competitor whose price does not violate such
Section.

Section 12. Every member shall upon the request of the Code
Authority furnish a designated agency of the Code Authority, in
respect to closed transactions only, with complete information in
regard to any quotation, order, contract or sale of any product of
the Industry, including information as to specifications, quantities,
price, conditions of storage, transportation or delivery, terms of
billing, cash or trade discounts allowed and other pertinent facts
relating to such quotation, order, contract or sale.

Section 13. 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 price and on such terms
and conditions as a member shall publish with the Code Authority,
prior to the sale thereof.

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

Article VII — Reports and Statistics

Section 1. Each member shall prepare and file with an impartial
agent designated by the Code Authority at such times and in such
manner as it may prescribe, such statistics, data, and information
relating to plant capacity, volume of production, volume of sales in
units and dollars, orders received, unfilled orders, stocks on hand, in-
ventory both raw and finished, number of employees, wage rates,
enrploj'ee earnings, hours of work, and other matters, as the Code
Authority or the Administrator may from time to time require.

Section 2. Except as otherwise provided in the Act, or in this Code,
all statistics, data, and information filed or required in accordance
with the provisions of this Code shall be confidential and the sta-
tistics, data, and information of one member shall not be revealed
to another member. No such data or information shall be published

591

except in combination with other similar data and in such a manner
as to avoid the disclosure of confidential information. The Code
Authority shall arrange in such manner as it may determine for the
current publication of Industry statistics to members.

Section 3. The Code Authority shall make such reports to the
Administrator as he may from time to time require.

Article VIII — Monopolies

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

Article IX — Recommendations

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

(a) For the establishment of additional rules of Fair Trade Prac-
tice for the Industry and for the codification of its Trade Customs
and the enforcement thereof.

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

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

Article X — Trade Practices

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

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

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

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

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

592

(e) No member shall give, permit to be given, or directly offer
to give, anything of value for the purpose of influencing or reward-
ing the action of any employee, agent, or representative of another
in relation to the business of the employer of such employee, the
principal of such agent or the represented party, without the knowl-
edge of such employer, principal or party. The foregoing 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 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.

Section 2. The following practices are hereby prohibited :

(a) Contracts lacking mutuality — quantity or blanket contracts
that are not limited to time or quantity. The making of quantity
contracts with the buyer without obligation on the part of the buyer
to take delivery of the quantity produced and used for the purpose of
securing or giving special price.

(b) False billing — the practice of invoicing a less quantity than
the actual amount shipped. Withholding from the invoice facts
which make the invoice a false record. Allowing unearned dis-
counts ; allowing secret rebates and settlements.

(c) Misrepresentation — making of false reports or incorrect re-
ports regarding a competitor's products, financial or personal stand-
ing, including without limitation, reports to Governmental or Health
authorities concerning the product of a competitor.

Article XI — General Provisions

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

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

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

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

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

Approved Code No. 371.
Registry No. 160S-02B.

Approved Code No. 372
CODE OF FAIR COMPETITION

FOR THE

SHOE REBUILDING TRADE

As Approved on March 27, 1934

PRESIDENT ROOSEVELT

EXECUTIVE ORDER

Code of Fair Competition for the Shoe Rebuilding 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 Shoe Rebuilding 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 there-
to, 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:

FRANKLIN D. ROOSEVELT.

Approval recommended :
Hugh S. Johnson,

A dminis trat o r.

The White House,

March 27\ 1934.

49139° 425-1G4 34 (593)

LETTER OF TRANSMITTAL

The PRESIDENT,

The White House,

Sir: The Hearing on the Code of Fair Competition for the Shoe
Rebuilding Trade was held at the Raleigh Hotel, Washington, D.C.,
on January 9, 1934.

The Code which is attached was presented by duly qualified and
authorized representatives of the Trade complying with statutory
requirements, said to represent over sixty percent of the Trade in
number and a larger proportion in volume of business.

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

THE TRADE

There are about 80,000 members of the Trade and about 40,000
employees. The Trade is characterized by small establishments, of
which the majority employ no workers, and is at present in an
extreme] y disorganized condition.

During recent years increasing competition has been offered to the
one-man shops by chain stores. These latter have in general been
able to materially undersell their competitors. The one-man shop
has found it very difficult to meet this form of competition, with the
result that a large proportion of them are heavily in debt.

It is estimated by the Research and Planning Division that
employment in this Trade at the present time shows no material
decrease from the number employed in 1929, although the wages
paid have in most cases been reduced from the 1929 level.

WAGES

Minimum wages under this Code are established at twenty dollars
($20.00) per week for shoe rebuilders and at fifteen dollars ($15.00)
per week for all other employees, except bootblacks, in cities of 500,-
000 population or more. Differentials are provided for places of
smaller population. The minimum wage for bootblacks is estab-
lished at six dollars ($6.00) per week in addition to tips, in all
places regardless of population. This minimum for bootblacks will
represent in many cases a substantial increase in compensation, as
in many cases these employees have been working without any fixed
wage whatever.

It is believed that the wages established in the Code will materially
increase employees' compensation.

The Code also provides that wages above the minimum shall not
be reduced because of the reduction of working hours.

(594)

595

GENERAL

Representation on the Code Authority is provided for all mem-
bers of the Trade.

Trade Practice Provisions have been incorporated to eliminate
unfair trade practices.

The Code provides for the establishment of minimum prices for
the various services rendered. I feel that this provision should not
become effective until after adequate study, and I recommend, there-
fore, that your Executive Order stay the application of that provi-
sion.

FINDINGS

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

I find that :

(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of
industry for the purpose of cooperative action among the trade
groups, by inducing and maintaining united action of labor and
management under adequate governmental sanctions and 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
ancL agricultural products through increasing purchasing power, by
reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industr}^.

(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 associations
are trade associations truly representative of the aforesaid Trade;
and that said associations impose no inequitable restrictions on
admission to membership therein.

(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.

Accordingly, I hereby recommend the approval of the Code of
Fair Competition for the Shoe Rebuilding Trade.
Respectfully,

Hugh S. Johnson,

Administrator,
March 26, 1934.

CODE OF FAIR COMPETITION FOR THE SHOE
REBUILDING TRADE

Article I — Purpose

To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code
of Fair Competition for the Shoe Rebuilding Trade, and shall be
the standards of Fair Competition for such Trade and shall be bind-
ing upon every member thereof.

Article II — Definitions

1. The term " Shoe Rebuilding Trade", as used herein, means the
repairing, rebuilding, and remodeling of any and all kinds of foot-
wear and the performance of all work incidental thereto.

2. The term " member of the Trade ", as used herein, means any
individual, partnership, association, corporation, or other entity en-
gaged in the Trade, either as an employer or on his or its own behalf.

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

4. The term " ownership-employee ", as used herein, means the
owner of a shoe rebuilding shop who employs no one and who himself
engages in the operations and processes of shoe rebuilding.

5. The term " employee ", as used herein, means any and every
person engaged in the Trade in any capacity who receives compensa-
tion for his services, irrespective of the nature or method of payment
of such compensation, except a member of the Trade.

(a) The term " shoe rebuilder ", as used herein, means any person
engaged in the rebuilding of footwear.

(b) The term " executive ", as used herein, means any employee
solely responsible for the management of a business or of a recognized
subdivision thereof.

(c) The term " bootblack ", as used herein, means any person
solely engaged in cleaning and polishing shoes and kindred personal
services.

G. The term " retail outlet ", as used herein, means all places of
business where the services of the Shoe Rebuilding Trade are offered
to the public, whether the same are operated exclusively as shoe
rebuilding shops or as departments of other establishments.

7. The term " Code Authority ", as used herein, means the Na-
tional Administrative Agency of the Shoe Rebuilding Trade as
established in Article VI of this Code.

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

(596)

597

9. The term " trade area " as used herein, means any area desig-
nated as a trade area by the Code Authority and approved by the
Administrator.

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

Article III — Hours

1. No employee shall be permitted to work in excess of forty-eight
(48) hours in any one week or eight (8) hours in any twenty-four
(24) hour period beginning at midnight, except on Saturdays and
days preceding legal holidays, in which event employees may be
permitted to work not more than ten (10) hours. Within ninety
(90) days from the effective date of this Code the Code Authority
in cooperation with a representative of labor appointed by the
Administrator on recommendation of the Labor Advisory Board
shall make recommendations to the Administrator, after a study,
looking toward a shortening of the maximum hours provided in
this Article.

(a) The maximum hours fixed in the foregoing paragraph shall
not apply to executives who are regularly paid a salary of $35.00
or more per week in cities of 500,000 population or more and their
trade areas, or $32.50 or more per week in cities between 100,000
and 500,000 population and their trade areas, or $30.00 or more per
week in cities of less than 100,000 population and their trade areas.

2. Notwithstanding the exemptions from maximum hours pro-
vided by section 1 (a) of this Article, such exemptions shall not in
any case apply to more than one worker to every ten (10) workers
or major fraction thereof, provided that any shop may have at least
one such worker. For the purpose of this section, the word
" worker " shall be deemed to include employees, employers, owners,
managers, and persons not receiving monetary wages, when such
persons are actually engaged in any work other than of an exclu-
sively managerial or supervisory character.

3. No retail outlet or shop shall remain open or be operated on
Sundays or on National, State, or local holidays, or in excess of
sixteen (16) hours on any Saturday, or in excess of twelve (12)
hours on any other day, or in excess of sixty-three (63) hours per
week; provided, however, that where a member of the Trade is
operating in a department store as a department of such store and
such department store in compliance with the retail code operates
a greater number of hours, then such member of the Trade may
comply with the hours of the department store and the other mem-
bers of the Trade in the same local trade area may remain open the
same number of hours ; and provided further that when a day of the
week other than Sunday is recognized as the Sabbath by a member
of the Trade, and such member of the Trade regularly keeps his
place of business closed on such days, such place of business may re-
main open and be operated on Sunday, subject, however, to state
and local laws and ordinances.

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

598

5. 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.

Article IV — Minimum Wage

1. No shoe rebuilder shall be paid at less than the following rates :

Per week

Zone 1 : Cities of 500,000 population or more and their trade areas $20. 00

Zone 2: Cities of between 100,000 and 500,000 population, not covered

by Zone 1, and their trade areas , 17. 00

Zone 3 : Cities of less than 100,000 population, not covered by Zones 1

and 2, and their trade areas 15.00

2. No other employee, except bootblacks, shall be paid at less than
the following rates :

Per week

Zone 1 : Cities of 500,000 population or more and their trade areas $15. 00

Zone 2 : Cities of between 100,000 and 500,000 population, not covered

by Zone 1, and their trade areas , 14. 00

Zone 3: Cities of less than 100,000 population, not covered by Zones 1

and 2, and their trade areas . 13. 50

3. No bootblack shall be paid at less than the rate of $6.00 per
week, in addition to any tips or other gratuities received. Within
ninety (90) days from the effective date of this Code, the Code
Authority in cooperation with a representative of labor appointed
by the Administrator on recommendation of the Labor Advisory
Board shall make recommendations to the Administrator, after a
study, as to a modification of this section necessary to provide a fair
and equitable wage to bootblacks.

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

5. No member of the Trade, by reason of the adoption of this
Code, shall reduce an employee's total weekly compensation (based
on the four-week period prior to June 16, 1933), whether based on an
hourty, weekly, or other rate, notwithstanding the fact that the hours
of work of such employee may be reduced hereunder.

6. No part-time employee shall be paid at less than the rate of
fifty cents (50c) per hour.

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

8. Employers shall make payment of all wages and salaries due in
lawful currency or by negotiable check therefor payable on demand.
Wages and salaries shall be exempt from any payments or charges
whatsoever other than those voluntarily paid by the employee or
required b}7 law. Employers shall agree with employees not to with-
hold wages or salaries, and to pay wages at least at the end of every
two weeks' period, and salaries at least at the end of every month.

The employer or his agent shall accept no rebates directly or
indirectly on such wages or give anything of value or extend favors
to any person for the purpose of influencing rates of wages or the
working conditions of his employees.

599
Article V — General Labor Provisions

1. No person under 17 years of age shall be employed in the Trade
except bootblacks, who may be employed if 16 years of age or over.
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 signed
by the authority in such state empowered to issue employment certifi-
cates 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.

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

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

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

7. Each employer shall post and keep posted in ten-point type
or larger a complete copy of this Code, and the name and address
of the nearest official place where code violations may be reported,
in English and such other languages as the employees may need to
understand it, in conspicuous places readily accessible to the
employees.

8. An employee shall be paid at least his full rate of pay for all
time required to be spent at the place of employment or in connec-
tion with the discharge of duties of such employment.

9. No employer shall contract his work to any person to be done
except when such person is subject to the provisions of this Code or
the Code adopted for the trade or industry covering such work.

10. It is not the intention of this Code to modify established prac-
tices or privileges as to vacation periods or sick leave.

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

12. Every employer shall make reasonable provision for the safety
and health of his employees at the place and during the hours of
their employment. Standards for safety and health shall be sub-
mitted by the Code Authority to the Administrator for approval
within six months after the effective date of this Code. Upon ap-
proval by the Administrator, such standards shall become operative
as a part of this Code.

600

Article VI — Administration

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

1. The Code Authority shall consist of from five (5) to seven (7)
representatives of the Trade (who shall be members of the Trade)
or such other number as may be approved from time to time by the
Administrator, to be selected as hereinafter provided, and such addi-
tional persons not to exceed three (3), without vote, as the Adminis-
trator may appoint to represent such groups or interests or such
governmental agencies as he may designate.

(a) Five (o) members of the Code Authority shall be selected in
the following manner: The Board of Directors of the National Asso-
ciation of Master Shoe Rebuilders shall elect one (1) ; the Board of
Directors of the National Shoe Rebuilders Association of America
shall elect one (1) ; the Board of Directors of the American Federa-
tion of Shoe Repairers, Inc., shall elect one (1) ; the Board of Direc-
tors of the New England Master Shoe Rebuilders Association shall
elect one (1) ; and the Board of Directors of the Associated Shoe
Repairers of America shall elect one (1).

The foregoing five (5) members shall be elected on or before the
effective date of this Code, and shall hold office for one year and
thereafter until their successors are elected; their successors shall
be elected for a term of one year. Elections of successors (which
may include reelections of original members) shall be made, and
vacancies for unexpired terms may be filled, in the same manner
and by the same agencies as the original elections.

(b) Two additional members of the Trade, who are not members
of any of the five associations mentioned above, may be appointed
members of the Code Authority by the Administrator or selected
in a manner prescribed by him.

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

(a) Impose no inequitable restrictions on membership.

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

4. Members of the Trade shall be entitled to make use of the
National Recovery Administration Code Insignia for said Trade and
to participate 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.

601

5. (a) 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 for any Act
of any other member, officer, agent, or employee of the Code Au-
thority, nor shall any member of the Code Authority exercising
reasonable diligence in the conduct of his duties hereunder be liable
to any one for any action or omission to act under the Code, except
for his own willful mis-feasance or non-feasance.

(b) The Code Authority and each local Administrative Board,
established pursuant to the provisions of Section 6, subsection (e) of
this Article may, upon submission to and approval by the Adminis-
trator of its proposed certificate of incorporation and by-laws, in-
corporate under the laws of any State in the United States or of the
District of Columbia. The powers, objects, and purposes of said
corporations shall in all respects be limited to the powers, objects, and
purposes of the Code Authority for the Shoe Rebuilding Trade and
the local Administrative Boards of the Shoe Rebuilding Trade as
provided in this Code, and the existence of the corporations shall be
for the duration of this Code.

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

(a) It shall insure the execution of the provisions of this Code;
and provide subject to rules and regulations established by the Ad-
ministrator, for the compliance of the Trade with the provisions
of the Act.

(b) It shall adopt bylaws and rules and regulations for its pro-
cedure and for the administration of the Code, in accordance with
the powers herein granted, and submit the same to the Administra-
tor 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) It shall divide, and, if necessary, sub-divide the United States
into such regions and local areas as, in its judgment, will best facili-
tate the administration of this Code, subject to the approval of the
Administrator.

(d) It shall create as an agency of the Code Authority local Joint
Industrial Relations Boards consisting of an equal number of rep-
resentatives of employers and employees, and an impartial chairman
elected by the Members of the Board, to deal with all matters in the
Code relating to hours, wages, and general labor provisions. The
designated employees representatives shall be truly representative
of the employees of the trade and chosen by such employees.

(e) It shall establish and appoint local Shoe Rebuilding Admin-
istrative Boards for each such region or local area and delegate to
such administrative boards any of the power and duties reposed in it
by this Code with respect to such regions or local areas, such admin-
istrative board to be representative of the several groups comprising
the Shoe Rebuilding Trade in its region or local area, and, where a
representative consumers' organization exists in such region or local
area, to include a representative of such organization without vote ;
provided, however, that nothing herein shall relieve the Code
Authority of its responsibilities under this Code.

602

(f) It shall request the United States Bureau of Standards to
define standards of quality of such materials as the Code Authority
may deem necessary and to describe such standards of quality in
terms intelligible to the public. When such standards have been
defined and described by the United States Bureau of Standards,
and approved by the Administrator, such descriptions shall be used
by all members of the Trade in selling or offering for sale any
services in Avhich the material defined is used.

(g) It shall prescribe uniform hours for opening and closing of
retail outlets for each region or locality, with due regard for the
needs and customs of such regions and localities, subject to the ap-
proval of the Administrator; provided, however, that where a mem-
ber of the Trade is operating as a department of a department store
and such store is observing certain opening and closing hours in
compliance with the Code of Fair Competition for the Retail Trade,
then such member of the Trade may be permitted to observe the
same hours as the department store, and all other members of the
Trade in the same local area may observe the same hours for opening
and closing.

(h) It shall cause to be formulated an accounting system and
methods of cost findings or estimating capable of use by all members
of the Trade. 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 de-
termine or estimate costs in accordance with the principles of such
methods.

(i) It shall establish and prescribe, after due notice to members of
the Trade and to representatives of consumers and others affected by
this provision and a public hearing in each region or local area at
which representatives of consumers and other groups affected thereby
shall be given an opportunity to be heard, fair and reasonable mini-
mum wholesale and retail prices by regions and/or local areas, for
the several services comprised within the definition of the Shoe Re-
building Trade; such minimum wholesale and retail prices to be
sufficient to provide for carrying out the purposes of the Act, to en-
able the Trade to maintain the payment of at least minimum wages
herein established and other wages properly based thereon, the fur-
nishing of stable employment necessary to maintain the Trade, and
such other considerations reasonably pertinent thereto. In the event
that 25% of the members of the Trade in any region and/or local
area voting in accordance with a fair method of voting approved
by the Administrator object to any price so established, such price
shall be automatically suspended until a further hearing and restudy
can be arranged. Prices so established shall be the lowest reasonable
cost of the service in such region or local area. The elements of such
cost shall be determined by the Code Authority subject to the ap-
proval of the Administrator. Such prices shall become effective upon
approval of the Administrator after due notice and a public hearing
on such prices.

Any minimum prices thus established may from time to time be
increased or decreased, according to changing conditions, by the
Administrator after such hearing as he may deem necessary.

603

Immediately after any such prices, increases, and/or reductions
have been approved by the Administrator, the Code Authority shall
take such steps as are reasonably calculated to notify all members of
the Trade thereof, that such prices, increases and/or reductions shall
go into effect upon such date or dates as the Code Authority shall fix.1

(j) It shall determine, on the basis of volume of business and/or
such other factors as may be deemed equitable to be taken into con-
sideration, and subject to the approval of the Administrator, the rea-
sonable share of the expenses of administration (including the ex-
penses of all regional and local Administrative Boards) for each of
the groups of members of the Trade represented on the Code Author-
ity and the reasonable share of each member within each group,
receive such payments either directly or through the associations
representing the several groups, and make such disbursements and
such distribution of the proceeds of such payments as are found
necessary to meet the expenses of administration.

(k) It shall obtain from members of the Trade such information
and reports as are required for the administration of the Code, and
it shall provide for submission by members of such information and
reports as the Administrator may deem necessary for the purposes
recited in Section 3(a) of the Act, which information and reports
shall be submitted by members to such administrative and/or govern-
ment agencies as the Administrator may designate; provided that
nothing in this Code shall relieve any member of the Trade of any
existing obligation to furnish reports to any Government agency.
No individual reports shall be disclosed to any other member of the
Trade or any other party except to such Governmental agencies as
may be directed by the Administrator.

(1) Upon its own initiative or upon complaint of any person
affected, it shall make investigation as to the functioning and observ-
ance of this Code, and report the results of such investigation to the
Administrator.

(m) It shall cooperate with the Administrator in the establish-
ment of an advisory council' for ail service trades, consider and advise
with the Administrator on matters of concern to two (2) or more
service trades operating under separate Codes of Fair Competition,
and shall appoint a representative of the Shoe Rebuilding Trade to
such advisory council.

(n) It may initiate, consider, and make recommendations for the
modification or amendment of this Code, which upon approval by
the Administrator shall become operative as a part of this Code.

(o) It may use such trade associations and other agencies as it
deems proper for the carrying out of any of its activities provided
for herein and 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 hereof.

(p) It shall coordinate the administration of this Code with such
other Codes, if any, as may be related to the Trade.

7. If the Administrator shall determine that any action of a Code
Authority or any agency thereof may be unfair or unjust or contrary

1 See paragraph 2 of order approving this Code.

604

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 approve, 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 VII — Trade Practices

The following practices, by any member of the Shoe Rebuilding
Trade, constitute unfair methods of competition and are prohibited :

1. Misleading Advertising. — The use of (or participation in) the
publication or the broadcasting of any untrue, deceptive, or mislead-
ing statement, representation, or illustration, in connection with and
for the purpose of furthering the sale of shoe rebuilding service.

2. Defamation or Disparagement of Competition. — The false im-
putation to competitors of dishonorable conduct, or inability to per-
form contracts, and/or poor or questionable credit standing and false
representation concerning the grade or quality of the service rendered
by competitors.

3. Underselling Claims. — Advertising which inaccurately an-
nounces or lays claim to a policy or continuing practice on the part
of the advertiser of generally or regularly underselling competitors.

4. Misleading Guarantees. — Guarantees which are not specific as to
the nature and extent of the guarantee or which for any reason are
unenforceable against the guarantor.

5. Misrepresentation of Prices. — Representation of any prices
and/or credit terms as " special " when they are in fact the regular
prices and/or credit terms of the person making such representation.

6. Unfair Merchandising Devices.— ^ (a) The payment of a com-
mission or any other consideration to anyone not a member of the
Trade nor regularly employed by a member of the Trade, for the
solicitation or procuring of shoe repairing.

(b) The use of lotteries.

(c) The use of coupon books and discount coupons. The provi-
sions of this paragraph shall not. however, prohibit (1) the use of
coupon books, discount coupons, premiums or certificates by a mem-
ber of the Trade who was using such coupon books, discount coupons,
premiums or certificates on the date of approval of this Code, under
a subsisting and binding contract with a person not a member of the
Trade, but only until the expiration of such contract, or (2) the use
of coupon books or of discount coupons provided all of the members
of the Trade doing business in the same local area agree to such use,
or (3) the use of trading stamps by a member of the Trade who is
operating as a department of a store when such department store
uses trading stamps for all its departments, but in such case no mem-
ber of the Trade may advertise the use of such trading stamps.

In the event that such a member makes use of trading stamps, then
all other members of the Trade in the same local area may also use
trading stamps if they desire.

7. Added Charges. — The attempt to secure an additional charge
for work performed other than that actually authorized by the
customer.

GOT)

8. Leasing space for Shoe Shining. — Leasing or renting or other-
wise permitting the use of any part of the premises of a member of
the Trade for shoe shining, so as to defeat the purposes of this Code
or of the Act.

9. Free Work. — The furnishing, free, of any services or commodi-
ties of this Trade to any one excepting a bona fide charity.

10. Selling Beloio Minimum Prices. — The sale, or offer for sale, of
any shoe rebuilding service in", or for delivery to, any region or local-
ity, at less than the minimum price for such services as may be
established for such region or locality under the provisions of Article
VI, Section 6 (i) of this Code.

11. Misrepresentation of Quality. — The sale, or offer for sale, of
any service involving the use of materials whose quality is defined
by the United States Bureau of Standards, without accurately in-
forming the customer, in such manner as may be prescribed by the
Code Authority, of the true quality of the material as defined and
described by the United States Bureau of Standards and approved
by the Administrator. Every member of the Trade shall display
in a conspicuous place in his retail outlet a printed list, which may
be easily read, of the various qualities of materials as defined and de-
scribed by the United States Bureau of Standards.

12. Selling Below Cost. — No member of the Trade shall sell any
service or commodity of the Shoe Rebuilding Trade at a price below
his own individual cost; provided, however, that any member may
meet the price competition of any other member whose costs are
lower. Cost shall be determined in accordance with the method of
cost-finding prescribed by the Code Authority under Article VI,
Section 6 (h) of this Code.

If minimum prices are established in accordance with the provision
of Article VI, Section G (i) of this Code, the foregoing paragraph
prohibiting sale below cost shall cease to be binding on any mem-
ber of the Trade.

Article VIII — Monopolies

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

Article IX — Modification

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

2. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances,

606

such modifications to be based upon application to the Administrator
and such notice and hearing as he shall specify, and to become
effective on approval of the Administrator.

Article X — Effective Date

The effective date of this Code shall be the second Monday after
approval by the President.

Approved Code No. 372.
Registry No. 928-273.

Approved Code No. 373
CODE OF FAIR COMPETITION

FOR THE

INFANTS' AND CHILDREN'S WEAR INDUSTRY

As Approved on March 27, 1934

PRESIDENT ROOSEVELT

EXECUTIVE ORDER

Code of Fair Competition for the Infants' and Children's Wear

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 my approval of a Code
of Fair Competition for the Infants' and Children's Wear Industry,
and hearings having been held thereon and the Administrator having
rendered his report containing an analysis of this Code of Fair Com-
petition, together with his recommendations and findings with re-
spect thereto, and the Administrator having found that this Code
of Fair Competition complies in all respects with the pertinent
provisions of Title I of said Act and that said requirements of
clauses (1) and (2) 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 this Code of Fair
Competition be and it is hereby approved, subject to the following
conditions :

1. That any manufacturer of infants' and children's wear as
defined in this Code and also included in any other Code of Fair
Competition heretofore approved, except such manufacturers of in-
fants' and children's wear as are excluded from the jurisdiction of
this Code under Article II, Section 2 thereof, shall have the privilege
of electing to operate under this Code upon the condition that such
manufacturer shall substitute for the wage and hour provisions of
this Code the wage and hour provisions of such other Code of Fair
Competition and shall conform with such wage and hour provisions,
and provided further that such manufacturer shall agree to such

49205° 425-167 34 (607)

608

other conditions as the Administrator may prescribe. For the pur-
pose of making effective such election, any manufacturer entitled
thereto as herein provided, is hereby granted an exemption and ex-
ception from such other Code of Fair Competition, and any manu-
facturer of Infants' and Children's Wear who shall make such elec-
tion shall be subject to this Code and shall be considered a member
of the Industry as defined in this Code and shall have the privilege
of participating in the selection of the Code Authority as provided
in this Code and in sharing in the benefits of the activities of this
Code Authority, and shall contribute his reasonable and proportion-
ate share of the expenses of this Code Authority.

All manufacturers of infants' and children's bathrobes who were
members of the Robe Industry Association of America, Inc., up to
and including March 13, 1934, shall be governed by the Code of
Fair Competition for the Robe and Allied Products Industry.

All manufacturers of infants' and children's bathrobes who were
members of the United Infants' and Children's Wear Association up
to and including March 13, 1934, shall be governed by the Code of
Fair Competition for the Infants' and Children's Wear Industry as
to the manufacture of infants* and children's bathrobes.

All manufacturers of infants' and children's bathrobes who were
not members of either of the Associations above named as of March
13, 1934, shall, within forty-five (45) days from the effective date of
the Code of Fair Competition for the Infants' and Children's Wear
Industry, have the right to elect to be governed by the Code of Fair
Competition for_the Infants' and Children's Wear Industry, or the
Code of Fair Competition for the Robe and Allied Products Industry,
insofar as their production of infants' and children's bathrobes is
concerned. Such election shall be submitted in writing to both the
Robe and Allied Products Code Authority, Inc., and the Code Au-
thority for the Infants' and Children's Wear Industry. Any manu-
facturer not making such election within the forty-five (45) day
period as hereinabove specified, shall be deemed to have elected to
be governed by the Code of Fair Competition for the Robe and
Allied Products Industry, and shall have no further right to elect.

All manufacturers of infants' and children's bathrobes who were
not members of either association above named as of March 13, 1934,
who commence the manufacture of such products after the effective
date of the Code of Fair Competition for the Infants' and Children's
Wear Industry, may within fifteen (15) days after commencing
such manufacture of infants' and children's bathrobes, elect to be
governed by the Code of Fair Competition for the Infants' and
Children's Wear Industry, or the Code of Fair Competition for the
Robe and Allied Products Industry. Any manufacturer not making
such election within the fifteen (15) day period as hereinabove speci-
fied shall be deemed to have elected to be governed by the Code of
Fair Competition for the Robe and Allied Products Industry, and
shall have no further right to elect.

Each of the above mentioned associations shall forthwith submit
to the Administrator certified copies of the list of their members
manufacturing infants' and children's bathrobes prior to' March
13, 1934.

609

Anything to the contrary herein notwithstanding, any manufac-
turer of blazers, sport coats, jersey cloth suits, Eton and Rugby
suits, boys' overcoats, sizes one to six, boys' snow suits and boys'
three piece legging sets who also manufacture other items of infants'
and children's wear as defined in this Code, and who shall have
elected in accordance with the provisions hereinabove set forth, to
operate under this Code shall not be bound by any other wage pro-
visions of the Code of Fair Competition for the Men's Clothing
Industry except the minimum wage of forty ($.40) cents per hour.

2. That all manufacturers of infants' and children's wear as de-
fined in this Code who also manufacture wearing apparel included
in the Code of Fair Competition for the Cotton Garment Industry,
but whose production of infants' and children's wear, excepting
infants' and children's bathrobes, as defined in this Code is 80% or
more of their total production, shall be governed by the provisions
of this Code under the Code Authority constituted thereby ; that all
manufacturers of wearing apparel included in the Code of Fair
Competition for the Cotton Garment Industry, who also manufac-
ture infants' and children's wear as defined in this Code to the
extent of 20% or less of their total production of wearing apparel
shall be governed by the provisions of the Code of Fair Competi-
tion for the Cotton Garment Industry, under the Code Authority
constituted thereby; that all manufacturers of infants' and chil-
dren's wear defined in this Code to the extent of less than 80% but
more than 20% of their total production, who also manufacture
wearing apparel governed by the Code of Fair Competition for the
Cotton Garment Industry, shall elect to operate under this Code, or
under the Code of Fair Competition for the Cotton Garment Indus-
try.

3. That all manufacturers of infants' and children's wTear as de-
fined in Article II, Section 2 of this Code whether operating under
the provisions of this Code or under the provisions of any other
Code of Fair Competition heretofore approved and all manufac-
turers of girls' coats, sized to and including age fourteen, and com-
monly made available to the public through infants' and children's
departments of Department Stores and Specialty Shops as children's
coats, shall be subject to the provisions of Article IX of this Code
and for such purpose shall be deemed " members of the Industry."

All manufacturers of infants' and children's bathrobes, however,
shall conform to the trade practice provisions of the Code of Fair
Competition for the Robe and Allied Products Industry as hereto-
fore approved on January 16, 1934, and all amendments to said trade
practice provisions as may hereafter be approved; due notice of
hearings, thereon, however, shall be sent to the Code Authority for
the Infants' and Children's Wear Industry.

Franklin D. Roosevelt.
Approval recommended :
Hugh S. Johnson,

Administrator.

The White House,

March 07, 193£.

LETTER OF TRANSMITfAL

The President,

The White House.

Sir : This is a report of the Hearing on the Code of Fair Compe-
tition for the Infants' and Children's Wear Industry conducted in
Washington on December 5, 1933.

The Code which is attached was presented by duly qualified and
authorized representatives of the Industry, complying with statu-
tory requirements, and claiming to represent in excess of eighty per-
cent of the industry by volume of business, and in excess of seventy-
five percent by membership. These figures represent the number of
members and the volume of production if all of those persons, who
have the right to elect to operate under this Code so elect, and become
subject to the provisions of this Code. Excluding such persons, how-
ever, who become members of the industry only by electing to do so,
and taking into consideration the number of members who are now
definitely under the provisions of the Code, and the volume of pro-
duction of this Industry, the above figures, based upon the number of
members and volume of production would be far greater than
reported above.

THE INDUSTRY

The Infants' and Children's Wear Industry consists of the manu-
facture of a great variety of garments for infants and children,
including infants' coats, infants' and children's dresses, infants' and
children's wash suits, creepers, rompers, play suits, snow suits,
infants' and children's underwear and nightwear, infants' and chil-
dren's bath robes and flannelette garments, infants' and children's
leggings, headwear, bonnets, play togs, christening outfits and sundry
other garments worn by infants and children.

The Industry is primarily located in the States of New York,
Pennsylvania, Connecticut, New Jersey and Massachusetts, but
there are substantial manufacturing centres in some thirty other
states of the Union as far south as Texas, as far west as California,
and as far north as Michigan and Maine. The Industry has shown
a substantial decrease in both volume of sales and employees from
1928 to date. In 1928 and 1929 approximately $181,000,000 of these
products were sold. In 1930 there was a decrease to approximately
$154,000,000. In 1931 a decrease to approximately $121,000,000 and
in 1932 a decrease to approximately $103,000,000.

In 1929 there were approximately 74,000 factory workers and
about 30,000 home workers emploj^ed in the Industry. In 1930
there were approximately 66,000 factory workers and 28,000 home
workers. In 1932 there were approximately 61,000 factory workers
and 23,000 home workers.

(610)

611

The various divisions of the Industry, prior to the National
Industrial Recovery Act, operated on an average work week through-
out the year of forty-eight (48) hours per week. The work week
for the manufacture of garments, except children's coats, has been
reduced to forty hours per week, or a decrease of 16%%. The number
of factory employees employed in the manufacture of coats was
approximately 8,000 in 1932. The decrease of hours to forty is there-
fore estimated to increase the number of factory employees, ex-
clusive of those making coats, by approximately 10,500. The hours
in the Coat Division of this Industry have been reduced from an
average of fifty hours per week throughout the year to 35 hours
per week, or a decrease of approximately 30%. This will therefore
increase the employment in the Coat Division of the Industry by an
estimated amount of some 3,000 factory workers. It is therefore
calculated that the hour provisions contained in this Code will
increase the number of factory workers to approximately 83,500,
which greatly increases the number of employees in the Industry in
1929. It has been estimated that the payroll in this Industry for
1932 was approximately $21,000,000. The minimum rates of pay
in this Industry were, as in the case of most of the needle industries,
extremely low, it being estimated that the minimum wages in the
Industry prevalent in 1932 were $5 to $6 per week. The wages
provisions of this Code provide for a minimum hourly wage of 321^
cents per hour throughout the United States, with the exception of
the so-called Southern section, where, a 30 cent per hour minimum
wage is provided for. This represents an increase of over 100% in
the average minimum wage prevailing in the Industry heretofore.

It has been estimated that the wage provisions in this Code will
increase the payroll of the Industry in the sum of approximately
$17,000,000. per year, including the wages to be paid to the new
employees taken on as a result of the maximum hours of work pro-
vision in the Code.

GENERAL COMMENTS

One of the unique features of this Industry is the fact that the
manufacturers as a rule do not specialize in the production of any
one type of garment. A tabulation of the commodities manufactured
by the members of the Industry reveals the following information:

Manufacturers primarily engaged in the manufacture of Infants'
and Children's coats not only manufacture coats but also manufacture
infants' and children's headwear, infants' and children's wash suits,
infants' and children's silk wear, infants' and children's leggings,
infants' and children's zipper suits, rompers, snow suits, muffs, car-
riage covers and dresses in substantial quantities, many of these coat
manufacturers manufacturing a coat, a dress, a hat and a carriage
cover to match. Approximately 70% of the manufacturers of in-
fants' and children's coats manufacture commodities other than
coats.

Manufacturers primarily engaged in the production of infants'
and children's bathrobes not only manufacture infants' and chil-
dren's bathrobes but also manufacture blankets, shawls, infants' and
children's flannelettes, infants' and children's dresses, as well as a

612

large number of articles made in the home, such as infants' jackets,
booties, hoods, moccasins in substantial quantities.

Manufacturers primarily engaged in the manufacture of silk in-
fants' wear also manufacture infants' and children's dresses, slips,
coats, christening suits, consisting of a dress and slip and a coat and
bonnet, to match, carriage covers, creepers and miscellaneous infants'
and children's novelty and accessory items in substantial quantities.

Approximately 50% of the manufacturers of infants' and chil-
dren's silk wear manufacture more than one type of commodity.

Manufacturers primarily engaged in the manufacture of infants'
and children's dresses not only manufacture dresses but also manu-
facture infants' and children's wTash suits, pajamas, rompers, silk
infants' wear, play suits, bathrobes, flannelettes, blouses, coats, snow
suits, creepers and headwear in substantial quantities.

Approximately 38% of the manufacturers of infants' and chil-
dren's dresses manufacture articles other than dresses.

Manufacturers primarily engaged in the production of infants'
and children's wash suits not only manufacture infants' and chil-
dren's wash suits but also manufacture infants' and children's creep-
ers, rompers, dresses, snow suits, knit jersey suits, legging sets,
blouses, zipper suits, brother and sister suits, pajamas and play togs,
in substantial quantities. Approximately 65% of the manufacturers
of infants' and children's wash suits manufacture commodities other
than wash suits.

Manufacturers primarily engaged in the manufacture of infants'
and children's underwear also manufacture infants' and children's
night wear, bathrobes, dresses, headwear, sun suits, flannelettes and
beach pajamas, in substantial quantities. Approximately 90% of the
manufacturers of infants' and children's underwear manufacture
commodities other than infants' and children's underwear.

Manufacturers primarily engaged in the manufacture of bath-
robes and flannelettes also manufacture infants' and children's sports-
wear, dresses, pajamas, play suits, baby boy suits and other infants'
and children's accessories, in substantial quantities. Approximately
40% of the manufacturers of infants' and children's bathrobes and
flannelettes manufacture commodities other than infants' and chil-
dren's bathrobes and flannelettes.

Manufacturers primarily engaged in the manufacture of infants'
and children's leggings and play suits not only manufacture infants'
and children's leggings and play suits but also manufacture infants'
and children's snow suits, dresses, wash suits, coats, headwear, sports-
wear and underwear in substantial quantities. Approximately 65%
of the manufacturers of infants' and children's leggings and play
suits manufacture commodities other than infants' and children's
leggings and play suits.

Manufacturers primarily engaged in the manufacture of infants'
and children's bonnets and headwear also manufacture coats, dresses,
silk underwear, and other infants' and children's accessories, in
substantial quantities. Approximately 40% of the infants' and
children's bonnets and headwear manufacturers manufacture com-
modities other than infants' and children's bonnets and headwear.

It seems proper therefore from this fact alone that these manu-
facturers be granted a Code of Fair Competition. The production of

613

these various items of infants' and children's wearing apparel are
so inter-related and are so frequently manufactured in the same
factories by the same employees, that the problems of all these
manufacturers are necessarily inter-related and can best be treated
in one Code of Fair Competition. Not to permit them to operate
under a single Code of Fair Competition would be to place them
under serious hardship.

There is furthermore a definite line of demarcation between in-
fants' and children's wearing apparel and the manufacture and
distribution of garments not included in this Code. The colors,
textures, style elements, and in certain instances method of manu-
facture of infants' and children's wearing apparel are unique to
the Industry. From the standpoint of distribution, the problems of
all of the manufacturers included within the jurisdiction of this
Code are identical. The retailers, specialty shops and department
stores have in the course of business over the past twenty (20) years
recognized a substantial difference between the manufacture and
distribution of products included in this Code and other items of
wearing apparel. Department stores have separate infants' and
children's wearing apparel departments and the one buyer for that
department usually buys every item of infants' and children's wearing
apparel sold in the department. The buyers do not restrict them-
selves to any one particular commodity of infants' and children's
wearing apparel for, as has been indicated, the same manufacturer
often manufactures so many different types of garments that spe-
cialization on the part of the buyers as well as on the part of the
manufacturer is virtually impossible.

Another characteristic of the industry is the low selling price of
the commodities manufactured. This is a result of the genesis of
the industry. Some thirty years ago there were virtually few manu-
facturers of infants' and children's wear throughout the country.
Most of the infants' and children's garments were made at the home
of the particular mother for her own infant or child. The manu-
facturers in order to foster the industry went through a rigorous
system of education of the parent and potential buyer of these com-
modities to show the advantages and conveniences of purchasing
these commodities rather than making them at home. In order to
induce the potential purchasers to purchase rather than to make their
own garment, the selling price of commodities was necessarily made
extremely low. Not only was this necessary in order to induce the
purchaser to purchase the commodity but also because of the fact that
infants' and children's Avearing apparel represents a type of apparel
that is easily made at home. If the selling price of these com-
modities is raised too high in view of the limited amount of ma-
terial and labor necessary to make an infant's or child's garment,
there is serious clanger of the mother purchasing the material, mak-
ing the garment herself , and thus seriously prejudicing the prosperity
of the industry. For this reason great attention is necessary to
maintain on the one hand a reasonable minimum wage from the
standpoint of the worker and at the same time not raise the selling
price of these commodities so high that the welfare of the industry
be prejudiced.

40205° 423-167 34 2

614

The Infants' and Children's Wear Industry, as such, is recognized
as a distinct branch of the Wearing Apparel Industry. The original
intention of the Code proponents was to include any and every item
of infants' and children's wearing apparel sized from infancy to,
and including, age fourteen (14) commonly made available to the
public through Infants' and Children's Departments of Department
Stores and Specialty Shops as infants' and children's wear. How-
ever, in view of the fact that a number of codes have been previously
approved with branches of the infants' and children's wear industry
included in such approved codes, it was necessary to set up in this
Code two divisions (1) those branches of the infants' and children's
wear industry which were not included in approved codes, and (2)
those branches of the infants' and children's wear industry included
in heretofore approved codes to whom the right of election is given
to operate under the Code for the Infants' and Children's Wear
Industry, or under the Code heretofore approved.

Those branches of the industry which are not in other codes, and
which come within the purview of the infants' and children's Code
are specifically enumerated in Sections 2, 3, and 4, of Article II. As
to those branches which have the right of election to operate under
the provisions of this Code, there is an enumeration of such individ-
uals in Section 7 of Article II. By agreement with Code Authorities
and between Deputy Administrators, this right of election was
arrived at.

In most cases where there is overlapping between this Code and
other Codes already approved, such manufacturers as may be in-
cluded under this Code, or any such other Code, are given the right
to elect under which Code they shall operate. In the event that no
specific election is made any such manufacturer comes automatically
within the jurisdiction of such other Code of Fair Competition. If
he makes an election he may do so, providing he agrees to substitute
for the wages and hour provisions of this Code, wages and hour pro-
visions at least equivalent to the wages and hour provisions of such
other Code of Fair Competition, and provided also that he agrees
to such other conditions as the Administrator may prescribe. In
this way it becomes immaterial, from a competitor's standpoint,
under which Code any particular manufacturer desires to operate.
In any case he must pay the same wages and abide b}^ the same hour
conditions. This procedure of election is not provided in one
instance, namely: for the manufacture of goods produced in con-
junction with goods included under the Cotton Garment Code. In
the latter case the Executive Order provides, according to an agree-
ment arrived at between the Cotton Garment Code Authority and
the proponents of this Code, that any manufacturer who manufac-
tures in excess of 80% of his total production articles covered by the
provisions of this Code, shall automatically come for all production
under the jurisdiction of this Code; that manufacturers producing
in excess of 80% of goods included in the Cotton Garment Code shall
automatically come within the jurisdiction of the Cotton Garment
Code, and that manufacturers producing less than 80% of goods
included in the Cotton Garment Code and less than 80% of goods
included in this Code shall have the right to elect under which Code
they shall operate.

615

Considerable care has been exercised to the end that the provisions
of this Code are practically identical with the provisions of the
Cotton Garment Code. Consequently, there is no difference, com-
petitively speaking, between the two Codes and no manufacturer
gains any advantage or suffers any disadvantage from the compet-
itive standpoint no matter which Code he may automatical^ operate
under or may elect to operate under.

The problems and difficulties presented by this Code are unique.
They were of such a character that a Code built up in the ordinary
manner was impossible. After months of negotiation and work, this
Code is reduced to its simplest possible terms. Nevertheless, it is
probably the most complicated Code which will ever be approved
under this Administration. It remains, however, the best solution
possible to an extremely difficult problem.

FINDINGS

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

I find that :

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

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

(c) The Code complies in all respects with the pertinent provi-
sions of Title I of the Act, including without limitation Subsection
(a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of
Section 10 thereof; and that the 26 applicant groups are trade groups
truly representative of the aforesaid Trade; and that said groups im-
pose 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, I recommend that the Code be approved.
Respectfully,

Hugh S. Johnson,

A dministrator.
March 26, 1934.

CODE OF FAIR COMPETITION FOR THE INFANTS' AND
CHILDREN'S WEAR 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 Infants' and Children's Wear Industry
and shall be the standard of fair competition for said Industry and
shall be binding upon every member thereof.

Article II — Definitions x

1. The term " Industry " as used herein shall include the manufac-
ture of infants' and children's wear as hereinafter defined.

2. The term " infants' and children's wear " as used herein shall
include any and all garments manufactured and sold as infants' and
children's wear sized from infancy to and including age fourteen,
and commonly made available to the public through infants' and
children's departments of department stores and specialty shops as
infants' and children's wear, including, but without limitation (a)
silk infants' wear, (b) infants' and children's beach togs, creepers
and rompers, (c) infants' and children's dresses sold as infants' and
children's wear and sized from infancy to and including age four-
teen, but does not include Misses and Junior dresses of standard
sizes, (d) baby boys' suits, (e) infants' and children's flannelettes, (f )
infants' bonnets manufactured of rayon, silk, crepe de chine, organdy,
lawn, pique, and similar fabrics, made by sewing machine or by
hand, for infants up to and including the age of four, and (g) girls'
eiderdown coats manufactured, styled and sold in sizes ranging
from six months to and including age three, and manufactured to
sell at wholesale for no more than eighteen ($18.00) dollars per
dozen.

The term " infants' and children's wear " as used herein shall not
include however, (a) bathing suits, (b) children's coats, (c) sheep-
lined and leather coats, (d) boys' separate pants and knickers, (e)
boys', children's and infants' clothing made of purchased fabrics
woven or knitted of all or part woolen content included in the Code
of Fair Competition for the Men's Clothing Industry, other than
blazers, sport coats, jersey cloth suits, wash suits, eton and rugby
suits, boys' overcoats sizes one (1) to six (6), boys' snow suits, and
boys' three (3) piece legging sets, (f ) knitted cotton underwear, (g)
woven cotton underwear of the so-called athletic type, (h) garments
made in underwear mills other than those made from purchased
fabrics, (i) blouses and shirts not customarily worn as part of a suit
or ensemble, (j) hosiery, nor (k) shoes.

1 See paragraphs 2 (1) and 2 (2) of order approving this Code.

(016)

617

3. The term "infants' coats" as used herein shall include (a)
any and all infants' silk coats; (b) any and all girls' eiderdown
coats customarily manufactured, styled and sold in sizes ranging
from size six months to and including size three, if said eiderdown
coats are manufactured to sell at wholesale for no more than eighteen

($18.00) per dozen; (c) boys' coats and reefers sizes to and including
age six.

4. The term " infants' bonnets " as used herein shall include any
and all articles of heaclwear manufactured of rayon, silk, crepe de
chine, organdy, lawn, pique, and similar fabrics, made by sewing
machine or by hand for infants up to and including the age of four.

5. The term " employee " as used herein shall include any and all
persons engaged in the Industry, however compensated, except any
person insofar as he is acting as an employer.

6. The term " employer " as used herein shall include anyone by
whom such an employee is compensated or employed.

7. The term " member of the industry " as used herein, shall in-
clude anyone engaged in the industry, whether as manufacturer;
manufacturer employing contractors or sub-manufacturers; sub-
manufacturer or contractor; either as an employer or on his or its
own behalf; including all manufacturers of (a) silk infants' wear,
(b) infants' and children's beach togs, creepers and rompers, (c)
infants' and children's dresses styled as infants' and children's wear
and sized from infancy, to and including age fourteen, (d) baby
boys' suits, (e) infants' and children's flannelettes, (f) infants' bon-
nets manufactured of rayon, silk, crepe de chine, organdy, lawn,
pique, and similar fabrics made by sewing machine or by hand for in-
fants up to and including the age of four, (g) infants' silk coats,
(h) girls' eiderdown coats manufactured, styled and sold in sizes
ranging from six months to and including age three, and maufac-
turecl to sell at wholesale for no more than $18.00 per dozen, (i)
jersey cloth suits, and (k) such other items of infants' and children's
wear as are not specifically included in any other Code of Fair Com-
petition heretofore approved or hereafter to be approved.

The term " member of the industry " as used herein shall also
include all manufacturers of (a) infants' and children's bathrobes
excepting boys' robes sizes seven (7) and over; (b) children's head-
wear; (c) infants' and children's underwear; (d) blazers, sport coats,
eton and rugby suits, boys' overcoats, sizes one to six, boys' snow suits
and boys' three piece legging sets; where such items are manufac-
tured in conjunction with other items of infants' and children's wear
as hereinabove defined, who shall elect to operate under and be sub-
ject to this Code in accordance with any Executive or Administrative
Order creating such right.

The term " member of the industry " as used herein, shall also
include any other manufacturer of infants' and children's wear as
hereinabove defined, who shall elect to operate under and be subject
to this Code in accordance with any Executive or Administrative
Order creating such right.

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

618
Article III — Hours

1. Members of the Industry manufacturing: (a) Silk infants'
wear, (b) Infants' and children's beach togs, creepers and rompers,
(c) Infants' and children's dresses styled as infants' and children's
wear and sized from infants to and including age fourteen, (d)
Baby boy suits, (e) Infants' and children's flannelettes, (f ) Infants'
bonnets manufactured of rayon, silk, crepe de chine, organdy, lawn,
pique and similar fabrics made by sewing machine or by hand for
infants up to and including the age of four, (g) infants silk coats,
(h) jersey cloth suits, (i) Girls' eiderdown coats manufactured,
styled and sold in sizes ranging from six months to and including
age three, and manufactured to sell at wholesale for no more than
$18.00 per dozen, and (j) such other items of infants' and children's
wear as are not included specifically in any other Code of Fair Com-
petition heretofore approved or hereafter to be approved shall be
governed by the following provisions :

(a) Except as hereinafter provided, no employee shall be per-
mitted to work in excess of forty (40) hours in any one (1) week,
nor in excess of eight (8) hours in any twenty-four (24) hour period,
nor in excess of five (5) days in any seven (7) day period.

(b) Xo employee engaged in clerical or office work or in shipping
departments or stock rooms, unless he is employed in a managerial,
supervisory or executive capacity and earns not less than thirty-five
dollars ($35.00) per week shall be permitted to work in excess of
forty (40) hours per week averaged over any three months' period.

(c) Members of repair shop crews, machinists, electricians, por-
ters, and drivers, shall not be permitted to work in excess of forty
(40) hours in any one (1) week, except that persons employed in
such capacities may be employed in excess of forty (40) hours per
week in case of emergency arising through accident or similar cause,
provided that any and all such overtime work shall be paid for at
not less than one and one-third (V/s) times the normal hourly rate
for such employee.

2. Xo employee engaged in the manufacture of blazers, sport-
coats, Eton and Rugby Suits, boys' overcoats, sizes 1 to 5, boys' show-
suits or boys' three piece legging sets shall be permitted to work in
excess of thirty-six (36) hours in any one week nor in excess of
eight (8) hours in any one day.

3. No member of the Industry shall engage any employee for any
time which when totaled with that already performed with another
member or members of the Industry, exceeds the maximum per-
mitted herein.

Article IV — Wages

619

(h) jersey cloth suits, (i) Girls' eiderdown coats manufactured,
styled and sold in sizes ranging from six months to and including
age three, and manufactured to sell at wholesale for not more than
$18.00 per dozen, and (j) such other items of infants' and children's
wear as are not included specifically in any other Code of Fair
Competition heretofore approved or hereafter to be approved shall
be governed by the following provisions :

(a) Except as hereinafter provided no employee shall be paid at
less than the rate of thirty-two and one-half cents (32^0) per hour
when employed in all parts of the United States other than the
Southern Section nor at less than the rate of thirty (300) per hour
when employed in the Southern Section. For the purposes of this
Article the term " Southern Section " shall include the States of
Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, New
Mexico, North Carolina, Oklahoma, South Carolina, Tennessee,
Texas, and Virginia.

(b) No employee engaged as an apprentice shall be paid at less
than seventy-five percent (75%) of the minimum wages herein pro-
vided during the first eight (8) weeks of employment, and thereafter
not less than the minimum herein provided. If the operation at
which any apprentice is engaged has a piece-work rate and the
amount earned at such piecework rate is more than the minimum
apprentice wage hereby established, such apprentice shall be paid on
a piecework basis. The period of apprenticeship shall not exceed
eight (8) weeks and any time worked by an apprentice shall be
deemed a part of such apprentice period whether such time is worked
continuously, or in more than one shop, or for more than one
employer. The number of apprentices engaged by any one employer
shall at no time exceed ten percent (10%) of the total number of
employees engaged by such employer.

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

That such person 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 provision of
this Code.

That the employer shall at once prepare and transmit to the Code
Authority a list of such persons, stating name, class of occupation,
wage rate, length of service, and such other pertinent information
as the Code Authority may require. This list shall be revised up to
date once each month and transmitted to the Code Authority.

The proportion of persons so compensated to total employees shall
not exceed ten percent (10%) at any one time.

The Code Authority shall report to the Administrator within three
^3) months after the effective date of this Code and from time to
time thereafter as to the effect of the operation of this subsection,
both generally and in cases of individual hardship.

2. Members of the Industry manufacturing infants' and children's
wear included in a Code of Fair Competition heretofore approved
who shall elect to operate under and be subject to this Code in ac-
cordance with any Executive or Administrative Order creating such

620

right shall conform, except as specifically provided in Section 4 of
this Article, to wage provisions equivalent to the wage provisions
of such other Code of Fair Competition.

3. No employee engaged in the manufacture of blazers, sport-
coats, Eton and Rugby suits, boys' overcoats, sizes one to six, boys'
snow-suits, boys' jersey suits and boys' three piece legging sets shall
be paid at less than the rate of forty cents (40^) per hour.

4. The weekly compensation for employment now in excess of
the minimum wages herein provided shall not be reduced, notwith-
standing that the hours of work in any such employment may be
hereby reduced, and piece rates shall be so adjusted that earnings
at the shorter hours provided in this Code shall be at least equivalent
to those obtained under the longer hours heretofore prevailing, pro-
vided that this clause shall not cause an increase in any wage rate
by more than twenty-five per cent (25%) over the wage rate as
of July 1, 1933.

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 collec-
tively, through representatives of their own choosing, and shall be
free from interference, restraint, or coercion of emplo}'ers of labor
or their agents, in the designation of such representatives or in self-
organization or in other concerted activities for the purpose of col-
lective bargaining.

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

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

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

7. No provisions 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.

8. No member of the Industry shall employ home labor for the
performance of home work on sewing machines.

621

9. The Code Authority shall, within six (6) months of the effective
date of this Code recommend to the Administrator appropriate
means for the regulation and control of such home work in this
industry as is not provided for in Section 8 of this Article.

10. Each member of the industry shall be furnished, by the Code
Authority, with official copies of the provisions of this Code re-
lating to hours of labor, rates of pay, and other conditions of
emplovment. 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.
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 conditions 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 Author-
ity, on the request of such person, shall furnish him with certified
copies of such modifications, exemption or exception in sufficient
number for posting alongside of such official copies of Code Pro-
visions. No member of the industry shall display or furnish any
incorrect copies of such provisions, directions, modifications, exemp-
tions or exceptions.

11. No provisions in this Article shall modify established prac-
tices for privileges as to vacation period, leaves of absence, or
temporary absence from work heretofore guaranteed to office
employees.

Article VI — Contractors

1. For the purposes of this Article the term " contractor " shall
include any and all persons engaged in the manufacture of infants'
and children's wear as herein defined from materials provided for
them by jobbers and others.

2. No member of the Industry shall cause any goods to be manu-
factured in any factory not registered with the Code Authority in
accordance with regulations determined by the Code Authority
and approved by the Administrator.

3. No member of the Industry shall employ any Contractor found
and reported by the Code Authority to be operating in violation of
the provisions of this Code until such time as the Code Authority
permits the re-employment of such Contractor. The application of
this Section shall at all times be subject to rules and regulations
issued by the Administrator.

4. All members of the Industry engaged in the manufacture of
infants' and children's dresses and causing such garments or any
part thereof to be manufactured by Contractors shall pay to such Con-
tractors for such productions, rates at least sufficient to enable such
Contractors to pay to their employees working on such garments, the
minimum wage provided for by this Code, and all such payments
received by such Contractors shall be first applied in the payment of
wages to the employees working on such garments.

5. The Code Authority shall create, within ten (10) days of the
effective date of this Code a special committee to study the problem

622

of jobber-contractor relationships. Said committee shall make recom-
mendations to the administrator regarding the establishment as a
2)art of this Code, of such rules and regulations as will tend to stabi-
lize the relationships between jobbers and contractors and which will
further effectuate the purposes of the Act and of this Code, which
recommendations, upon the approval of the Administrator and after
such notice and hearing as he may prescribe, shall become effective as
part of this Code.

Article VII — Administration

1. There shall be forthwith constituted a Code Authority consist-
ing of:

(a) Eleven 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.

(c) Two members, without vote, to represent the interests of
labor and to be appointed by the Administrator on the nomination
of the Labor Advisory Board.

2. The representatives of the Industry shall be selected in the
following manner:

(a) Ten members shall be selected by the United Infants' and
Children's Wear Association.

(b) One member shall be selected by the Children's Dress Con-
tractors' Association.

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) 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 activi-
ties 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, he 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 Code Authority by assenting
to and complying with the requirements of this Code and sustaining
their reasonable share of the expenses of administration as shall be
determined by the Code Authority, subject to review by the Admin-
istrator, on the basis of volume of business or such other factors as
may be deemed equitable.

62b

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 Author-
ity, nor shall any member of the Code Authority, exercising reason-
able diligence in the conduct of his duties hereunder, be liable to
anyone for any action or omission to act under this Code, except for
his own 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 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 the 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 (30) 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 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
Administrator, for the compliance of the Industry with the pro-
visions of the Act: Provided, however that this shall not be con-
strued 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 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
furnish reports to government agencies. No individual report shall
be disclosed to any other member of the Industry or any other party
except to such governmental agencies as may be directed by the
President.

(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 assess and collect from members of the Industry an equi-
table and proportionate payment of the reasonable expenses of main*
taining the Code Authority and its activities.

(g) To recommend to the Administrator any action or measures
deemed advisable, including further fair trade practice provisions, tc

624

govern members of the Industry in their relations with each other
or with other 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.

(h) To appoint a trade practice committee which shall meet
with the trade practice committees set up pursuant to such other
codes as may be related to the industry for the purposes of formu-
lating fair trade practices to govern the relationships between em-
ployers under this code and under such other codes to the end that
fair trade practices may be proposed to the Administrator as amend-
ments to this Code, and such other codes.

(i) To recommend to the proper authority, should the provisions
of this Code so increase the cost of domestic manufacture as to
greatly increase the proportion of foreign imports and render in-
effective or seriously to endanger the maintenance of this Code, such
tariff and other regulations as will prevent this Code from being
rendered ineffective or its maintenance seriously endangered.

(j) To establish national and regional industrial relations boards
or other agencies of conciliation or arbitration in factories where
truly representative organizations of employers and employees are
declared to exist by the Administrator. Where such truly repre-
sentative organizations with respect to employees do not exist, the
Code Authority shall have the power to create factory and district
and national Industrial Relations Boards in accordance with the
regulations approved by the Administrator.

Article VIII — N.R.A. Labels

All garments manufactured or distributed subject to the pro-
visions of this Code shall bear an N.R.A. label to symbolize to pur-
chasers of said garments the conditions under which they were manu-
factured. Under the powers vested in him b}^ Executive Order of
October 14, 1933, and under grant of the necessary authority by
the Administrator, the Code Authority shall have the exclusive right
in this industry to issue and furnish said labels to the members
thereof. Each label shall bear a registration number especially
assigned to each employer by the Code Authority and remain
attached to such garment when sold to the retail distributor. Any
and all employers may apply to the Code Authority for a permit
to use such N.R.A. label, which permit to use the label shall be granted
to them, but only if and so long as they comply with this Code.
The Code Authority subject to approval by the Administrator, shall
establish rules and regulations and appropriate machinery for the
issuance of labels and the inspection, examination, and supervision
of the practices of employers using such labels in observing the pro-
visions of this Code for the purpose of ascertaining the right of
said employers to the continued use of said labels; of protecting pur-
chasers in relying on said labels; of insuring to each individual
employer that the symbolism of said label will be maintained by
virtue of compliance with the practices herein contained by all other
employers using said label.

The charge made for such labels by the Code Authority shall at
all times be subject to supervision and orders of the Administrator

625

and shall be not more than an amount necessary to cover the actual
reasonable cost thereof, including actual printing, distribution, and
administration and supervision of the use thereof as hereinabove
set forth.

Article IX — Trade Practice Rules 2

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, trademark, grade, quality, quantity, origin, size, substance,
character, nature, finish, material content or preparation) or credit
terms, values, policies, services, or the nature or form of the business
conducted.

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 any manner which is intended to or does deceive or mislead
purchasers with respect to the brand, grade, quality, quantity, origin,
size, substance, character, nature, finish, material content or
preparation of such goods.

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 extensions to purchasers of special services or privileges
not extended to all purchasers of like terms and conditions.

8. No member of the Industry shall give, permit to be given, or
directly offer to give anything of value for the purpose of influenc-
ing or rewarding the action of any employee, agent, or representa-
tive of another in relation to the business of the employer of such
employee, the principal of such agent, or the represented party with-
out the knowledge of such employer, principal or party. Com-
mercial bribery provisions shall not be construed to prohibit free
and general distribution of articles commonly used for advertising
except so far as such articles are actually used for commercial bribery
as hereinabove defined.

9. 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

3 See paragraph 2 (3) of order approving this Code.

626

with or obstruct the performance of such contractual duties or
services.

10. No member of the Industry shall grant cash discounts of any
kind or description, to the retail trade in excess of 8/10 E O M or
7/10/30 or 6/10/60 nor shall he grant any cash discounts of any
kind or description to the jobbing trade in excess of 3/10 E O M or
2/10/60. Goods billed after the 25th of the month may be con-
sidered as of the first of the following month. Payments not re-
ceived within five (5) days after the last date of maturity must be
paid net.

11. No member of the Industry shall ship finished goods on memo-
randum or consignment except under circumstances authorized by
the Code Authority and approved by the Administrator.

12. No member of the Industry shall accept the cancellation of an
order nor the return for credit of merchandise shipped in conformity
with the terms and conditions of the contract pursuant to which it
was sold and where the contract has been fully performed.

13. No member of the Industry shall sell any product or service
below cost based upon principles of costing formulated by the Code
Authority and approved by the Administrator except to meet com-
petition of a member of the Industry whose costs are lower. The
sale of distress merchandise shall be exempt from these restrictions.

Article X — Modification

1. This code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the 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
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 XI — Monopolies, Etc.

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

Article XII

627

so far as possible, they will be limited to actual increase in the
seller's costs.

Article XIII — Effective Date

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

Approved Code No. 373.
Registry No. 217-1-05.

AMENDMENTS

51699—34-

Approved Code No. 118 — Amendment No. 3
AMENDMENT TO CODE OF FAIR COMPETITION

FOR THE

COTTON GARMENT INDUSTRY

As Approved on March 15, 1934

ORDER

Approving Code of Fair Competition for the Cotton Garment

Industry

modification of conditions numbers 1 and 2 of executive order of

december 18, 1933

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 modifi-
cation of an Executive Order, dated December 18, 1933, approving,
inter alia, amendments to the Code of Fair Competition for the
Cotton Garment Industry, and the annexed report on said modifi-
cation, 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 of1 the
President, including Executive Order 6543-A, dated December 30,
1933, by Executive Order, dated December 18, 1933, approving
amendments to the Codes of Fair Competition for the Men's Cloth-
ing Industry and Cotton Garment Industry, by the provisions of
Section A of Article II of the Code of Fair Competition for the
Cotton Garment Industry, approved November 17, 1933, and other-
wise; do hereby incorporate by reference, said annexed report, and
do find that such modification and the Code as constituted after
being modified comply in all respects with the pertinent provisions
and will promote the policy and purposes of said Title of said Act,
and do hereby order that said modification, attached hereto as
Schedule A and specifically incorporated herein by reference, be and
it is hereby approved, and that the previous approval of said Code,
dated November 17. 1933, and said Executive Order, dated December
18, 1933, are hereby modified to include' an approval of said
Code in its entirety as modified, such modifications to take effect

(629>

630

seven clays after date hereof, unless good cause to the contrary,
is shown 'to the Administrator before that time, and the Adminis-
trator issues a subsequent order to that effect. This order shall ter-
minate July 1. 1934, subject to the issuance of further orders in.
this regard.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
A. D. Whiteside,

Division Administrator.

Washington, D.C.,

March 15, 193b.

REPORT TO THE PRESIDENT

The President,

The White House.

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

I find that:

(a) The modification of said Code and the Code as modified are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general
welfare by promoting the organization of industry for the purpose of
cooperative action among trade groups, by inducing and maintaining
united action of labor and management under adequate governmental
sanction and supervision, by eliminating unfair competitive prac-
tices, by promoting the fullest possible utilization of the present pro-
ductive capacity of industries, by avoiding undue restriction of pro-
duction (except as may be temporarily required), by increasing the
consumption of industrial and agricultural products through increas-
ing purchasing power, by reducing and relieving unemployment,
by improving standards of labor, and by otherwise rehabilitating
industry.

(b) The Code as modified complies in all respects with the per-
tinent provisions of said Title of said Act, including without limi-
tation Subsection (a) of Section 3, Subsection (a) of Section 7 and
Subsection (b) of Section 10 thereof.

(c) The modification and the Code as modified are not designed
to and will not permit monopolies or monopolistic practices.

(d) The modification and the Code as modified are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.

(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
modification.

I have therefore, on your behalf, approved said modification.
Respectfully,

Hugh S. Johnson,

Administrator.
March 15, 1934.

(631)

SCHEDULE "A"

The Executive Order of December 18, 1933. amending the Code of
Fair Competition for the Cotton Garment Industry, is amended as
follows. Conditions Numbers 1 and 2 of the said Order are abro-
gated, and the following substituted therefor :

1. No manufacturing employee engaged in the production of men's
and boys' pants when made of (a) corduroy, other than those shades
set forth below, or (b) cloths other than those set forth below,
whether or not made in work clothing factories, shall be paid at less
than the rate of thirty-four cents (340) per hour in the southern sec-
tion of the Industry, or less than thirty-seven cents (370) per hour in
the northern section of the Industry, as such sections are defined in
the Cotton Garment Code and amendments thereto.

No manufacturing employee engaged in the production of men's
and boys' pants made in work clothing factories in conjunction with
work clothing or work pants, when made of 100% cotton content and
when made entirely from carded cotton yarns without synthetic
yarn, silk or mercerized yarn decoration, and when such pants are
made of (a) denims, plain or printed or woven, including those
denims known as Hickory or express stripes, or (b) moleskins, or
(c) pin checks, or (d) carded seersuckers, or (e) coverts, or (f ) plain
dyed or bleached ducks, twills or drills, or (g) cottonades, except
cotton worsteds, or (h) dark drab, seal brown or navy blue cordu-
roys, or (i) heavy carded cotton whipcords, shall be paid less than
at the rate of thirty cents (300) per hour in the southern section of
the Industry, or less than thirty-two and one-half cents (32%0) per
hour in the northern section of the Industry, as such sections are
defined in the Cotton Garment Code and amendments thereto.

2. The Inter-Code Committee provided for in Condition Number 2
of the Executive Order of December 18, 1933, amending the Cotton
Garment Code, is hereby terminated and all powers and duties
delegated to the Committee in said Condition are hereby transferred
to the Special Administrator hereinafter provided. It is hereby
ordered that a Special Administrator shall be designated to serve
until July 1, 1934, who shall administer and supervise enforcement
in respect of cotton wash suits of 100% cotton content and/or single
pants, shall determine all questions in respect of the appropriate
minimum wage to be paid by any member of the Industry pursuant
to this Order, shall make interpretations of the provisions of this
Order, shall have the power to add to, alter or reclassify any of the
definitions or classes of materials set forth in this Order, and shall
determine all questions arising from the operation of this Order.
His determination and findings shall be final, and pending an appeal
to the Administrator shall be binding until disapproved.

The Special Administrator shall make a survey and study of the
Pants Industry, and shall prepare a report and recommendations

(632)

prior to. June 30, 1934, with respect to changes in maximum hours,
differentials, or changes in the minimum wage to be paid employees
engaged in the production of men's and boys' pants, and with
respect to amendments to the Cotton Garment Code concerning
definitions, wage rates and/or maximum hours.

3. No manufacturing employee engaged in the production of men's
wash suits of 100% cotton content when made in work clothing fac-
tories in conjunction with work clothing shall be paid at less than
the rate of thirty-four cents (340) per hour when employed in the
southern section of the Industry, or less than thirty-seven cents
(37^) per hour when employed in the northern section of the Indus-
try, as such sections are defined in the Cotton Garment Code and
amendments thereto. The Special Administrator hereinabove pro-
vided for shall have the same powers and duties with respect to such
cotton wash suits as are delegated to him by this Order with respect
to men's and boys' pants.

Approved Code No. 118 — Amendment No. 3.
Registry No. 217-1-06.

Approved Code No. 126 — Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION

FOR THE

CHINAWARE AND PORCELAIN MANUFACTURING

INDUSTRY

As Approved on March 16, 1934

ORDER

Approving Amendment of Code of Fair Competition for the
Chinaware and Porcelain Manufacturing Industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of an amend-
ment to the Code of Fair Competition for the Chinaware and
Porcelain Manufacturing Industry, and hearings having been duly
held thereon and the annexed report on said amendment, containing
findings with respect thereto, having been made and directed to
the President:

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
Geo. L. Berry,

Division Administrator.

Washington. D.C..

March 16, lQSJf.

(635)

REPORT TO THE PRESIDENT

The President,

The White House.

Sir: A Public Hearing on an amendment to the Code of Fair-
Competition for the Chinaware and Porcelain Manufacturing In-
dustry, submitted by the Code Authority for that Industry, was
conducted in Washington on February 14, 1934, in accordance with
the provisions of the National Industrial Recovery Act.

The amendment is to cover the equilization of freight on Govern-
ment contract bids. This provision is necessary in order to allow
fair competitive bids on such contracts by manufacturers located in
different parts of the country.

FINDINGS

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

I find that :

(a) The amendment to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of
the National Industrial Recovery Act including the removal of
obstructions to the free flow of interstate and foreign commerce
which tend to diminish the amount thereof, and will provide for the
general welfare by promoting the organization of industry for the
purpose of cooperative action among trade groups, by inducing and
maintaining united action of labor and management under adequate
governmental sanction and supervision, by eliminating unfair com-
petitive practices, by promoting the fullest possible utilization of the
present productive capacity of the industries, by avoiding undue
restrictions of production (except as may be temporarily required),.
by increasing the consumption of industrial and agricultural prod-
ucts through increasing purchasing power, by reducing and reliev-
ing unemployment, by improving standards of labor, and by other-
wise rehabilitating industry.

(b) The Code as amended 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.

(c) The American Vitrified China Manufacturers Association was
and is an industrial association truly representative of the vitrified
branch of the aforesaid industry and that said association imposed
and imposes no inequitable restrictions on admission to membership
therein and has applied for or consents to this amendment.

(d) The amendment and the Code as amended are not designed to
and will not permit monopolies or monopolistic practices.

(636)

637

(e) The amendment and the Code as amended are not designed to
and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.

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

Kespectfully,

Hugh S. Johnson,

Administrator.
March 16, 1934.

AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE CHINA WARE AND PORCELAIN MANUFACTURING
INDUSTRY

Article XIII

In bidding upon Government contracts all manufacturers of vit-
rified china may equalize the cost of transportation from their re-
spective plants with the cost of transportation from the plant near-
est to the point of delivery by allowing and deducting from their
bid prices the transportation cost between their respective plants
and said plant nearest the point of delivery and the allowing of said
difference in transportation cost shall not be considered a violation
of Article XI, Sub-section C of said Code.

Approved Code No. 126 — Amendment No. 1.
Registry No. 1033-1-01.

(638)

Approved Code No. 23 — Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION

FOR THE

UNDERWEAR AND ALLIED PRODUCTS
MANUFACTURING INDUSTRY

As Approved on March 16, 1934

ORDER

Approving Amendments to the Code of Fair Competition for the
Underwear and Allied Products 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 amend-
ments to a Code of Fair Competition for the Underwear and Allied;
Products Manufacturing Industry, and hearings having been duly
held thereon and the annexed report on said amendments, containing
findings with respect thereto, having been made and directed to the
President :

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
A. D. Whiteside,

Division Admin istrator.

Washington, D.C.,

March 16, 1931

(639)

REPORT TO THE PRESIDENT

The President,

The White House.

Sir: This is a report on the Hearing on the Amendments to the
Code of Fair Competition for the Underwear and Allied Products
Manufacturing Industry, held in the Oak Room of the Raleigh Hotel,
Washington, B.C., January 19, 1934. The Amendments, which are
attached, were presented by duly qualified and authorized representa-
tives of the Industry, complying with statutory requirements and
being the same agency that originally submitted the Code.

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

PROVISIONS OF THE AMENDMENTS

There are two amendments as follows:

1. An amendment providing that production data returns be re-
ported every month instead of every four weeks.

2. An amendment specifying that all persons engaged in the In-
dustry assenting to and complying with the provisions of the Code
shall pay their pro rata share of administering the Code.

FINDINGS

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

I find that :

(a) The amendments to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general wel-
fare by promoting the organization of industry for the purpose of
cooperative action among trade groups, by inducing and maintaining
united action of labor and management under adequate govern-
mental sanction and supervision, by eliminating unfair competitive
practices, by promoting the fullest possible utilization of the present
productive capacity of industries, by avoiding undue restriction of
production (except as may be temporarily required), by increasing
the consumption of industrial and agricultural products through
increasing purchasing power, by reducing and relieving unemploy-
ment, by improving standards of labor, and by otherwise rehabilitat-
ing industry.

(b) The Code as amended complies in all inspects with the perti-
nent provisions of said Title of said Act, including without limita-

(640)

641

tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof.

(c) The tjnderwear Institute was and is an industrial association
truly representative of the aforesaid Industry and that said associ-
ation imposed and imposes no inequitable restrictions on admission
to membership therein and has applied for or consents to these
amendments.

(d) The amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.

(e) The amendments and the Code as amended are not designed to
and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.

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

For these reasons these amendments have been approved.
Kespectfully,

Hugh S. Johnson,

Administrator.
March 16, 1934.

AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE UNDERWEAR AND ALLIED PRODUCTS MANU-
FACTURING INDUSTRY

(1) In the first paragraph of Part IV, Section 2, Subsection (c),
there shall be eliminated the words " four weeks " after the words
" returns every " and before the words " duly certified ", and there
shall be substituted therefor the word " month ". Also after the
clause. " 4, unfilled orders " there shall be added an additional clause,
" 5, cancellations and returns ", so that the first paragraph shall read
as follows :

" c. Production Data. — Returns every month duly certified show-
ing, in terms of the unit commonly used by the various branches of
the Industry affected, e. g., linear yards, pounds, pieces, or dozens, the
following: 1, production; 2, stocks on hand ((a) sold, (b) unsold) ;
3. new orders; 4, unfilled orders; 5. cancellations and returns."

(2) There shall be added to Part IV an additional Section, num-
bered 8. after Section 7, as follows :

" 8. All persons engaged in this Industry assenting to and comply-
ing with the provisions of this Code shall pay their pro rata share
of the expense in the administration of this Code, such pro rata share
to be determined according to the volume of business of each member
in the same manner as dues and assessments are paid to the Institute
by the members thereof."

Approved Code No. 23 — Amendment No. 1.
Registry No. 275-1-03.

(642)

Approved Code No. 13 — Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION

FOR THE

FISHING TACKLE INDUSTRY

As Approved on March 21, 1934

ORDER

Amendments to Code of Fair Competition for the Fishing

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

: NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to the authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate, by reference, said
annexed report and do find that said amendments and the Code as
constituted after being amended comply in all respects with the
pertinent provisions and will promote the policy and purposes of said
Title of said Act, and do hereby order that said amendments be and
they are hereby approved, and that the previous approval of said
Code is hereby modified to include an approval of said Code in its
entirety as amended.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended:
Geo. L. Berry,

Division Administrator.

Washington, D.C.,

March 21, 1934.

(643)

51699—34 3

REPORT TO THE PRESIDENT

The President,

The White House.

INTRODUCTION

Sir: This is the report of the Administrator to the President on the
application for, and public hearing on, certain amendments to the
Code of Fair Competition for the Fishing Tackle Manufacturing
Industry as proposed by the Fishing Tackle Industry Code Committee
(the Code Authority). The hearing was conducted in Washington on
February 14, 1934. Every person who requested an appearance was
fully heard in accordance with statutory and regulatory requirements.

The amendments to Article III, Section 1, are intended to relax the
present provision of the Code with regard to sales below cost and to
implement the new provision in the light of actual experience of the
past six months. It is apparent that the labor provisions have tended
to effectuate the purposes of the Act by " reducing unemployment and
improving standards of labor" in that employment has gained by
over 15% and payrolls by about 30%, but meanwhile the competitive
conditions in the industry have not improved as a result, at least in
part, of the failure of some manufacturers to give proper consideration
to increased costs.

The amendments to Article III, Sections 2 and 3, and a new Section
7, are intended "to eliminate unfair competitive practices", princi-
pally by clarifying the original provisions.

The proposed new Section 7 to Article IV is a provision now stand-
ard but unknown at the time this Code was approved last August 19.

It is notable that all of the amendments have been submitted to and
endorsed by the Industry as well as by the Code Committee. I be-
lieve that all of the proposals are fair and will tend to improve condi-
tions in the Industry and to effectuate the policies of the Act.

FINDINGS

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

I find that:

(644)

645

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 consump-
tion of industrial and agricultural products through increasing pur-
chasing power, by reducing and relieving unemployment, by im-
proving standards of labor, and by otherwise rehabilitating industry.

(b) The Code as amended 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.

(d) The amendments and the Code as amended are not designed to
and will not permit monopolies or monopolistic practices.

(e) The amendments and the Code as amended are not designed to
and will not eliminate or oppress small enterprises and will not 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 amend-
ments.

For these reasons the amendments have been approved.
Respectfully,

Hugh S. Johnson,

Administrator.
March 21, 1934.

AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE FISHING TACKLE INDUSTRY

Amend Article III, Section 1, to read as follows:

Sales below cost of production and distribution. — (a) In order to pre-
vent destructive price cutting in the Industry, the Fishing Tackle
Industry Code Committee provided for in Article IV hereinafter,
shall, subject to the approval of the Administrator, set up as soon as
practicable a standard method of cost accounting for the Industry.
Said Committee, shall, subject to the approval of the Administrator,
define "reasonable cost of production and distribution " for the pur-
pose of this Code and determine upon a basis to be uniform among
the manufacturers of this Industry the character of the items to be
included within such "reasonable cost of production and distribution."

(b) Except as provided in Sections 2 and 3 of this Article it shall
be unfair competition for any manufacturer to sell or offer to sell
directly or indirectly through a subsidiary, intermediary, or by any
means whatsoever, any product or part thereof of the Industry,
whether such product is produced in whole or in part in the United
States, at a price or upon terms which will result in a return to the
seller of an amount less than the seller's own reasonable cost of
production and distribution under this Code, except that it is hereby
specifically provided that a manufacturer may meet an established
competitive price of a domestic manufacturer on a product compar-
able as to grade, size, quality and other specifications, and under like
conditions of sale. Any below cost price quoted to meet competi-
tion, together with all pertinent information in respect thereto, must
be reported immediately to the Executive Officer of the Fishing
Tackle Industry Code Committee. Any manufacturer who justifies
a below cost price on the basis of competition thereby assumes
responsibility for establishing the existence of said competition.

(c) A price below cost justified upon the basis of competition shall
be void forthwith upon the cancellation, withdrawal or revision
upward of such justifying competitive price.

(d) In order to further effectuate the operation of this cost method,
any cost and/or price information which the Fishing Tackle Industry
Code Committee may deem necessary for the purpose required shall
be furnished promptly to the Executive Officer of said Committee.
It shall be unfair competition within the meaning of the National
Industrial Recovery Act for any manufacturer to withhold such
information, or to furnish false or misleading cost and/or price
information.

(e) All individual reports or cost information disclosed to the
Executive Officer of the Fishing Tackle Industry Code Committee
shall be kept confidential and shall not be made available to other
manufacturers or to the Industry members of the Code Committee
except as may be necessary when such data disclose a violation, in
which event such information shall, as much as possible, be confined
to a general summary.

(646)

647

(f) To facilitate the identification and classification of all products
of the Industry when necessary to determine comparability of com-
petition, each manufacturer shall keep the Executive Officer of the
Fishing Tackle Industry Code Committee supplied with the latest
copies of his catalog- and price lists and/or list and discount schedule
showing lowest net prices being currently quoted. Such catalog
and/or lists must contain or be supplemented by adequate information
as to type, size, design, specifications, character, quality, grade and
other pertinent information necessary to completely identify and
classify each product. Nothing in this provision shall be construed
to place any restriction on prices beyond subsection (b) of tins Section.

(g) Upon the request of manufacturers representing a majority of
the production by dollar sales of any class of products of the Industry,
the Fishing Tackle Industry Code Committee may temporarily
suspend the standard method of cost accounting as it affects said
class of products when in the judgment of the Code Committee the
application of the cost method to such products is not practicable, or
when the importation of competitive products in substantial quan-
tities or in increasing ratio to domestic production renders ineffective
the method or seriously endangers the position of domestic manu-
facturers of said class of products.

(h) The operation of the standard method of cost accounting shall
be subject at all times to the review of and appeal to the Adminis-
trator, who shall have the power to revoke any Code Committee
action or decision in respect thereto. In the interim between appeal
to the Administrator and his decision in respect thereto, unless the
Administrator shall otherwise order, the decision of the Fishing
Tackle Industry Code Committee shall continue in effect.

(i) Upon application to the Fishing Tackle Industry Code Com-
mittee by manufacturers representing a majority of the production
by dollar sales of any division or sub-division of the Industry, said
division or sub-division may, subject to the approval of the Admin-
istrator elect to sell its products upon such plan of open prices and/or
terms and conditions publicly announced by each manufacturer as
may be approved by the Administrator after such notice and hear-
ing as he may require.

(j) It shall be unfair competition for a manufacturer newly en-
gaged in the manufacture of any product of the Industry, or a new
manufacturer, without adequate cost history with respect thereto, to
charge prices based on an unwarranted presumption of the low cost
estimates or large sales volume.

Amend Article III, Section 2, to read as follows:

Sales to other manufacturers. — In order to better distribute emplo}^-
ment and to prevent over-production capacity, nothing in this Code
shall prevent one manufacturer from selling his product to another
bona fide fishing tackle manufacturer at prices mutually agreed upon,
providing such sales are made at prices not less than "factory cost",
and further providing that the purchasing manufacturer complies
with the provisions of this Code when reselling said merchandise.
All intra-manufacturer sales, or agreements covering such transactions,
at prices below the seller's reasonable cost of production and distri-
bution shall be subject to the approval of the Fishing Tackle Industry
Code Committee whose decisions in respect thereto shall be subject to

648

appeal to the Administrator. Said Committee shall, subject to the
approval of the Administrator, define " factory cost" for the purpose
of this Section of the Code.

Amend Article III, Section 3, to read as follows:

Close out merchandise. — It shall be an unfair trade practice to
manufacture overruns, excess stocks and/or sub-standard goods for
the purpose of disposal at reduced prices as close out merchandise,
seconds, mill ends, and/or dropped lines. Sales of bona fide mill ends,
dropped lines, rejects and/or surplus stocks may be made by any
manufacturer in any year up to three per cent (3%) of his dollar
volume of fishing tackle sales in the immediately preceding year, but
any such sale shall be reported to the Executive Officer of the Fishing
Tackle Industry Code Committee with the unit price of each separate
item, within ten (10) days of the end of the month in which such sale
was made. Sales of such merchandise in excess of three per cent (3%)
shall be made only upon application to and consent of the Fishing
Tackle Industry Code Committee, which must render its decision
within ten (10) days of the date of receipt of such application, and
whose failure to act within said ten (10) days shall be deemed an
approval. Any manufacturer has the right of direct appeal to the
Administrator from a decision of the Fishing Tackle Industry Code
Committee in this regard.

Add a new Section to Article III, as follows:

Section 7 — Price guarantees. — It shall be unfair competition to
guarantee prices except against the seller's own decline. Nothing
in this provision shall be construed to prevent the acceptance of firm
orders at specified prices and definite quantities, for future delivery.

Add a new Section to Article IV, as follows:

Section 7. — Nothing contained in this Code shall constitute the
members of the Fishing Tackle Industry Code Committee partners
for any purpose. Nor shall any member of the Code Committee be
liable in any manner to anyone for any act of any other member,
officer, agent or employee of the Code Committee. Nor shall any
member of the Code Committee exercising reasonable diligence in
the conduct of his duties hereunder be liable to anyone for any action
or omission to act under the Code, except for his own willful misfea-
sance or nonfeasance.

Approved Code No. 13 — Amendment No. 2.
Registry No. 1657-1-03.

Approved Code No. 110 — Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION

FOR THE

HARDWOOD DISTILLATION INDUSTRY

As Approved on March 21, 1934

ORDER

Approving Amendment of Code of Fair Competition for the
Hardwood Distillation 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 amendment
to a Code of Fair Competition for the Hardwood Distillation Indus-
try, and hearing having been duly held thereon and the annexed
report on said amendment, containing findings with respect thereto,
having been made and directed to the President:

Hugh S. Johnson,
Administrator j or Industrial Recovery.

Approval recommended:
Geo. L. Berry,

Division Administrator.

Washington, D.C.,

March 21, 1934.

(649)

REPORT TO THE PRESIDENT

The President,

The White House.
Sir: This is a report on the Amendment to Article IX, Section 1,
of the Code of Fair Competition for the Hardwood Distillation In-
dustry, and on the hearing conducted thereon in Washington, D.C.,
on February 9, 1934, in accordance with the provisions of Title I of
the National Industrial Recovery Act.

GENERAL STATEMENT

The Hardwood Distillation Industry, through its Code Authority,
has availed itself of the provision in Article VI, Section C, Operative
Provisions, of the Code of Fair Competition for the Hardwood Dis-
tillation Industry, approved by you on November 10, 1933, which
reads as follows:

"The Code Authority shall study the functioning and operation of
the industry under this Code, with a view to making recommenda-
tions to the Administrator which it deems desirable for modification
or addition to the trade practice regulations and rules and regulations
contained in this Code."

OBJECT AND ECONOMIC EFFECT OF THE AMENDMENT

Section 1 of Article IX and the preceding paragraph in the approved
Code provide as follows:

"The Code Authority shall study trade practice rules and the oper-
ation thereof, and shall make any recommendations from time to time
to the Administrator which it deems desirable for modification or
addition thereto, which, upon the approval of the President, shall
become a part of this Code and have full force and effect as provisions
hereof. The following trade practices are hereby prohibited:

"1. For any member of the Industry to sell the products of the
Industry below his individual cost of production of such products as
determined in accordance with the uniform system of accounting re-
ferred to in Article VIII, after it has been approved by the Adminis-
trator."

The amendment to this Section consists principally of adding the
following to Section 1 in the approved Code:

"Except to meet price competition either within or outside of the
Hardwood Distillation Industry and in such case, each member of the
Industry shall notify the Code Authority of the fact and his reasons
therefor."

This additional provision is necessary in this Industry because two
of the three principal products of the Industry, namely, acetic acid
(or acetate of lime) and methanol (wood alcohol), are produced
synthetically by chemical manufacturers who are not covered by the
definition of the Hardwood Distillation Industry Code. It is gener-
ally believed that the synthetic producers of these two products have
lower cost of production than members of the Hardwood Distillation
Industry and to some extent at least, the price which members of the

(650)

651

Hardwood Distillation Industry can realize on these products is de-
termined by the price set by synthetic producers. It is, therefore,
conceivible that members of the Hardwood Distillation Industry
would have to violate the provision in Section 1 of Article IX in order
to sell these two products of the Industry in competition with prices
which may be set by synthetic producers.

This amendment is in accord with the policy of the Administration
as stated subsequent to the time when the Hardwood Distillation
Industry Code was sent forward for approval. In general, without
such a provision and ignoring for the moment, competition of syn-
thetic producers in the two above mentioned products, if a member
of the Industry could not sell below his cost to meet the competition
of a more favorably situated or equipped plant, it would have the
effect of allowing the more favorably situated or equipped plant to
get more and more business and further reduce their costs. The
tendency would be to concentrate all business in the hands of the most
favorably situated or equipped plants. This consideration applies
to the third product of the Industry, namely, charcoal, as well as to
the above mentioned products which are in direct competition with
synthetic producers.

I find that:

(a) The amendment to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general wel-
fare by promoting the organization of industry for the purpose of
cooperative action among trade groups, by inducing and maintaining
united action of labor and management under adequate govern-
mental sanction and supervision, by ehminating unfair competitive
practices, by promoting the fullest possible utilization of the present
productive capacity of the 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 unemploy-
ment, by improving standards of labor, and by otherwise rehabili-
tating industry.

(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7 and Subsection
(b) of Section 10 thereof.

(d) The amendment and the Code as amended are not designed to
and will not permit monopolies or monopolistic practices.

(e) The amendment and the Code as amended are not designed to
and will not eliminate or oppress small enterprises and will not operate
to discriminate against them.

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

Respectfully,

Hugh S. Johnson,

Administrator.
March 21, 1934.

AMENDMENT TO CODE OF FAIR COMPETITION FOR THE
HARDWOOD DISTILLATION INDUSTRY

Article IX — Section 1

It is proposed to make this section read as follows:
"For any member of the Industry to sell the products of the
Industry at prices below the cost to the individual producer as deter-
mined by the methods prescribed by the Code Authority, with the
approval of the Administrator, except to meet price competition
either within or outside of the Hardwood Distillation Industry and
in such case each member of the Industry shall notify the Code
Authority of the fact and his reasons therefor.

Approved Code No. 110 — Amendment No. 1.
Registry No. 699-03.

(652)

Approved Code No. 118 — Amendment No. 4
AMENDMENT TO CODE OF FAIR COMPETITION

FOR THE

COTTON GARMENT INDUSTRY

As Approved on March 22, 1934

ORDER

Amendment to Code of Fair Competition for the Cotton

Garment Industry

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

Upon a good cause shown therefor, this Order shall be revocable,
at any time at the discretion of the Administrator.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended:
A. D. Whiteside,

Division Administrator.

Washington, D.C.,

March 22, 1934.

(653)

REPORT TO THE PRESIDENT

The President,

The White House.

Sir: The Public Hearing on an amendment to the Code of Fair
Competition for the Cotton Garment Industry expanding the juris-
diction of the Code of Fair Competition for the Cotton Garment
Industry to cover the manufacture of cotton underwear and sleeping
garments as proposed by the Code Authority for this Industry was
conducted on Monday, February 26, 1934, in the Ball Room of the
Raleigh Hotel, Washington, D.C. Every person who requested an
appearance was fairly heard in public in accordance with the regula-
tions of the National Recovery Administration. There were present
duly authorized representatives of the Code Authority and other
representative members of the Industry.

The Code of Fair Competition for the Cotton Garment Industry,
approved November 17, 1933, covers a variety of articles of apparel
manufactured from cotton. On October 19, 1933, the Association
of Cotton Undergarments and Sleeping Garment Manufacturers had
presented a petition to the Administrator asking that the definition
of the Code of Fair Competition for the Cotton Garment Industry
then awaiting approval be changed to give the Code jurisdiction over
the manufacture of cotton undergarments and sleeping garments.
For various reasons, action on this petition was delayed and no public
hearing was called on the petition until February 26, 1934, approxi-
mately three months after the Code of Fair Competition for the
Cotton Garment Industry had been approved, and then on the
recommendation of the Code Authority.

At the hearing it was clearly apparent that the Association origi-
nating the petition for the amendment was truly representative of
the group of manufacturers who will be directly affected by this
amendment. Such objection as was raised to the amendment was
based upon the desire of some manufacturers engaged both in the
manufacture of cotton underwear and silk or rayon underwear to
avoid coming under the jurisdiction of more than one Code of Fair
Competition. Since many of the members of the Association sponsor-
ing the amendment are already to some extent manufacturing under
the terms of the Code of Fair Competition for the Cotton Garment
Industry, this objection was not deemed to be a vital one.

In final form this amendment has been approved by the Labor
Advisory Board, Industrial Advisory Board, Consumers' Advisory
Board, and the Legal Division of the Recovery Administration.
The Code Authority as well as the Association of the Cotton Lender-
garment and Sleeping Garment Manufacturers have also, through
their duly authorized representatives, indicated their approval of
the amendment.

The Deputy Administrator in his final report to me on said amend-
ment to said Code, having found as herein set forth and on the
basis of all the proceedings in this amendment:

(654)

655

T find that:

(a) The amendment to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and still provide for the general
welfare by promoting the organization of industry for the purpose of
cooperative action among trade groups, by inducing and maintaining
united action of labor and management under adequate governmental
sanction and supervision, by eliminating unfair competitive practices
by promoting the fullest possible utilization of the present productive
capacity of industries, by avoiding undue restriction of production
(except as may be temporarily required), by increasing the consump-
tion of industrial and agricultural products through increasing pur-
chasing power, by reducing and relieving unemployment, by improv-
ing standards of labor, and by otherwise rehabilitating industry.

(b) The Code as amended 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.

(d) The amendment and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.

(e) The amendment and the Code as amended are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.

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

For these reasons, this amendment has been approved.
Respectfully,

Hugh S. Johnson,

Administrator.
March 22, 1934.

AMENDMENT TO CODE OF FAIR COMPETITION FOR THE
COTTON GARMENT INDUSTRY

The Code of Fair Competition for the Cotton Garment Industry
as approved on November 17, 1933, is hereby modified by adding to
Article II, Section A, the following:

(15) Women's and misses' pajamas, sleeping wear, and undergar-
ments of woven fabrics (other than the so-called athletic type), when
such garments, exclusive of trimmings, are made of one hundred per-
cent (100%) cotton fabrics.

And by adding to Article IX, Section B, the following:

(16) Association of Cotton Undergarment and Sleeping Garment
Manufacturers.

Approved Code No. 118 — Amendment No. 4.
Registry No. 217-1-06.

(050)

Approved Code No. 141 — Amendment No. 2
CODE OF FAIR COMPETITION

FOR

INVESTMENT BANKERS

As Approved on March 23, 1934

PRESIDENT ROOSEVELT

EXECUTIVE ORDER

Amendments to Code of Fair Competition for Investment Bankers

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 my approval of the
Amendments to the Code of Fair Competition for Investment
Bankers, and hearings having been held thereon and the Adminis-
trator having rendered his report containing an analysis of the said
Amendments together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
Amendments comply 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; and
the Administrator having further found that the agreement pro-
vided for in Article X of the said Amendments, pursuant to the
provisions of subsection (a) of Section 4 of the said Act, will aid
in effectuating the policy of the said Title I :

Inasmuch as the Amendments hereby approved are designed to
accomplish far reaching and desirable reforms in the practices of
investment bankers, involving important changes in methods here-
tofore customary, it is considered necessary to prescribe a more
expeditious method than that prescribed in the Code for effectuating
changes in the provisions of the Code as amended. In order, there

(657)

658

fore, to provide prompt relief for any hardship which may have been
inadvertently imposed by the provisions of the Code as amended, or
to make such corrections as may become necessary to meet unforeseen
contingencies, the Administrator may, upon recommendation of the
Investment Bankers Code Committee or otherwise, and after such
notice and hearing as he may specify, approve such modification or
amendment of this Code as amended as he may deem necessary or
desirable.

FRANKLIN D. ROOSEVELT.
Approval recommended:
Hugh S. Johnson,

Administrator.

The White House,

March 23, 1931

LETTER OF TRANSMITTAL

The President,

The White House.

Sir: I have the honor to transmit herewith Amendments to the
Code of Fair Competition for Investment Bankers, which are sub-
mitted in accordance with Articles IV and V of the Code of Fair
Competition for Investment Bankers.

The extent to which the Amendments are designed in the interest
of the investors of this country is peculiarly significant.

The evidences of fairness of purpose and thoroughness in prepara-
tion appear obvious. At a meeting of investment bankers assenting
to the Code, held on March 5, 1934, in Washington, 888 investment
bankers, in person or by proxy, voted to approve the Amendments,
and 117 voted in disapproval. At that time 1,251 investment
bankers had assented to the Code and were eligible to vote. Since
that time the number of assentors has increased to above 1,600.
A majority of the 117 who dissented expressed their approval of
the provisions as a whole and in principle and objected only to
certain specific provisions which have since been modified. A large
majority of the assenting investment bankers favor acceptance of
the Amendments.

Examination of the proceedings attending the preparation of the
Amendments discloses the fact that every reasonable effort was
exerted to keep every investment banker in the United States in-
formed regarding the formulation of these Articles and to enlist
their suggestions or criticisms, which were given full consideration
and were weighed as to their effect upon every factor involved.

A public hearing on these Amendments was held in Washington
on March 15, 1934. At this hearing the objections centered on the
provisions having to do with —

(a) Municipal securities.

(b) Restrictions upon salesmen.

In subsequent conferences with the Investment Bankers Code
Committee both proponents and opponents of the controversial
sections agreed to the modifications which have been made. The
reasonableness of the attitude of the investment bankers greatly
facilitated harmonizing the differences.

These fair practice provisions constitute a remarkable document.
The essential purposes are to eradicate past and existing abuses and
to establish principles and practices which will justify public con-
fidence, greatly assist in restoring the markets for both public and
private investment funds and result in an increased flow of invest-
ment capital into sound, productive enterprises, which will unques-
tionably increase employment and distribute added wealth among
our people.

(659)
51609—34 4

660

The importance of developing a capital market in connection with
the Recovery Program cannot be over emphasized.

Very definite provisions are included for these specific purposes,
both prescribing and proscribing investment banking activities in all
fundamental essentials. Brief!}', the purport of the Amendments
is as follows —

1. Eleven sections are devoted to a statement of general principles
for the conduct of the business, as a guide to the investment banker
and to the Investment Bankers Code Committee in interpreting and
administering the fair practice provisions of the Code. These deal
with standards of business conduct in the underwriting and dis-
tribution of securities and in safeguarding the welfare of investors.

2. Five sections govern the issuance of new securities. In the
future those issuing securities will be required to provide adequate
detailed information to investors as long as a security is out-
standing. This is a far reaching provision. It marks a very long
step in the right direction and furnishes a new safeguard to protect
investors.

3. Seventeen sections regulate the underwriting and distribution
of new issues. Provisions are included which will tend to establish
one price for all investors -irrespective of the size of the transaction
or the importance of the purchaser. Adequate time is provided for
the proper study and analysis of the facts regarding new issues by
all investment bankers participating in the distribution of each
issue.

4. Eight sections are directed to retail sales and purchases deal-
ing with disclosure of the adequate and the pertinent facts re-
quired to be made available to investors.

5. Four sections pertain primarily to salesmen, and stipulate the
minimum qualifications of those employed in that capacity and the
requirement for responsible supervision of their activities.

6. One important section relates to investment companies and
places certain restrictions on investment bankers having relations
or transactions with such companies.

7. Thirteen sections provide a unique opportunity for investment
bankers, through registration, to agree with one another upon the
expeditious enforcement of effective self discipline in the invest-
ment banking business.

It was stated in my letter of November 20, 1933, transmitting to
you the Code of Fair Competition for Investment Bankers that the
members of the association proposing the Code transacted approxi-
mately 90% of the total volume of the investment banking business
for the year 1932. This statement was intended to refer only to the
percentage of the volume of new issues. The members of the Asso-
ciation did a substantial percentage of the total volume. The Invest-
ment Bankers Association of America is the single truly repre-
sentative organization of this type of financial concerns, and there
is no other national association.

Inasmuch as the Amendments submitted herewith involve im-
portant changes in methods now existing, I suggest a more expedi-
tious procedure than that prescribed in the Code of Fair Competi-
tion for effectuating changes in its provisions. Especially is this
necessary in view of the provisions of Section 1 of Article IV; of

661

Sections 1 and 2 of Article V ; of Section 1 of Article VI ; of Article
X; and of Section 11 of Article XI. I therefore recommend that you
permit the Administrator, upon recommendation of the Investment
Bankers Code Committee or otherwise and after such notice and
hearing as he may specify, to approve such modifications or Amend-
ments as he may deem necessary or desirable.

The Division Administrator in his final report to me on the said
Amendments to said Code having found as herein set forth and on
the basis of all the proceedings in this matter :

I find that :

(a) The Amendments to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of
the National Industrial Recovery Act including the removal of ob-
structions to the free flow of interstate and foreign commerce which
tend to diminish the amount thereof, and will provide for the general
welfare by promoting the organization of industry for the purpose
of cooperative action among trade groups, by inducing and main-
taining united action of labor and management under adequate gov-
ernmental sanction and supervision, by eliminating unfair competi-
tive practices, by promoting the fullest possible utilization of the
present productive capacity of industries, by avoiding undue re-
striction of production (except as may be temporarily required),
by increasing the consumption of industrial and agricultural prod-
ucts through increasing purchasing power, by reducing and relieving
unemployment, by improving standards of labor, and by otherwise
rehabilitating industry.

(b) The Code as amended complies in all 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 4, Subsec-
tion (a) of Section 7 and Subsection (b) of Section 10 thereof.

(c) The Code empowers the Investment Bankers Code Committee
to present the aforesaid amendments on behalf of the business as a
whole.

(d) The Amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.

(e) The Amendments and the Code as amended are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.

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

For these reasons I recommend that you approve these Amend-
ments.

Respectfully,

March 23, 1934.

Hugh S. Johnson,

Administrator.

AMENDMENT TO CODE OF FAIR COMPETITION FOR
INVESTMENT BANKERS

Article I — Adoption and Interpretation x

The following provisions are adopted as supplementary provi-
sions to the Code of Fair Competition for Investment Bankers, as
approved November 27, 1933, bv the President of the United States,
and the provisions of Articles IV, V, VI, VII, VIII, and IX hereof
are established as Rules of Fair Practice for Investment Bankers
pursuant to the provisions of Articles IV and V of said Code.

These supplementary provisions shall become effective on the
thirtieth day after approval hereof by the President of the United
States : provided, that the Investment Bankers Code Committee may
postpone, and from time to time further postpone, the date on which
Section 7 of Article IX and Article X shall become effective so long
as no such postponement is made beyond the ninetieth day after
approval hereof by the President of the United States. They shall
continue in effect as long as said Code shall be in effect, and shall in
all respects be subject to said Code and the National Industrial
Recovery Act, approved June 16. 1933. They may be amended in
the same manner as is provided in said Code for amendment of
said Code.

The Rules shall be interpreted in such manner as will aid in
effectuating the policy of Title I of said National Industrial Recov-
ery Act, and so as to require that all practices in connection with
the investment banking business shall be just, reasonable, and non-
discriminatory.

The Rules are grouped for purposes of convenience under several
general headings, but such grouping and headings shall not be con-
strued as limiting the application of any Rule.

The Rules shall not apply to contracts made prior to the effective
date of the Rules.

Article II — Definitions

As used in these supplementary provisions —

(a) The term '* Code " shall mean the Code of Fair Competition
for Investment Bankers, as approved November 27, 1933, by the
President of the United States, under the provisions of Title I of
the National Industrial Recoverv Act. approved June 16, 1933.

(b) The term "Rules " shall mean the Rules of Fair Practice for
Investment Bankers as established in Articles IV, V, VI, VII, VIII,
and IX hereof, or as the same may be hereafter amended or supple-
mented.

(c) The term "investment banking business" shall mean the
business of underwriting or distributing issues of securities, or of

1 See paragraph 3 of order approving this Code.

(662)

663

purchasing securities and offering the same for sale as a dealer
therein, or of purchasing and selling securities upon the order and
for the account of others ; provided, however, that the term " in-
vestment banking business " shall not include transactions on regu-
larly organized exchanges, but such term shall include all business
relating to such transactions to the extent that such business is not
conducted by a member of such exchange or by any person or organi-
zation having the privilege of any such exchange for itself or any
of its partners or executive officers.

(d) The term " investment banker " shall mean any person en-
gaged in the investment banking business but shall not include an
employee.

(e) The term " registered investment banker " shall mean any
investment banker registered pursuant to the provisions of Article
X of these supplementary provisions.

(f ) The term " Investment Bankers Code Committee " shall mean
the Investment Bankers Code Committee established as provided in
Article III of the Code.

(g) The term " Regional Code Committee " shall mean
any Regional Code Committee established as provided in Section 2
of Article XI of these supplementary provisions.

(h) The term " security " or "securities" shall mean any note,
share of stock, bond, debenture, evidence of indebtedness, voting
trust certificate, certificate of deposit, interim certificate or interim
receipt, or, in general, any instrument commonly known as a secur-
ity, or any certificate of interest or of participation in, or warrant
or right to subscribe to or purchase, any of the foregoing.

(i) The term "new issue of securities" shall mean any issue of
securities sold or offered for sale in one transaction or in a connected
series of transactions as a result of which consideration for such
securities is or is to be received directly or indirectly by the issuer
thereof. As used in this paragraph (i) the term "issuer" shall
include, in addition to an issuer, any person directly or indirectly
controlling or controlled by the issuer, or any person under direct
or indirect common control with the issuer,

(j) The term "new security" shall mean any security included
in a new issue of securities.

(k) The term " public securities " shall mean any securities issued
by the United States or by any instrumentality thereof, or by any
territory or insular possession therof , or by the District of Columbia,
or by any State of the United States or by any subdivision or instru-
mentality of any such State, territory or insular possession.

(1) The term " issuer " shall mean any person who issues or
proposes to issue any security or who guarantees such security either
as to principal or income or who assumes the obligation to pay
such security either as to principal or income; except in respect to
certificates of deposit, voting trust certificates, interim certificates
or similar securities, the term " issuer " shall mean the person or
persons issuing the securities represented by such certificates of
deposit, voting trust certificates, interim certificates, or similar se-
curities ; and except that in respect to certificates of interest or
shares in an unincorporated investment company (sometimes spoken

664

of as investment trust) not having a board of directors (or persons
performing similar functions) or of the fixed, restricted manage-
ment, or unit type, the term " issuer " shall mean the person per-
forming the acts and assuming the duties of depositor or manager
pursuant to the provisions of the trust or other agreement or instru-
ment under which such securities are issued; and except that in
respect to equipment trust certificates or similar securities, the term
" issuer " shall mean the person by whom the equipment or other
property is or is to be used.

(m) The term " prospectus " used in relation to any security
registered under the Securities Act of 1933 shall mean the official
prospectus required by said Act. and used in relation to any other
security shall mean the offering or descriptive circular.

(n) The term " originator " shall mean any person who purchases
from an issuer a new issue of securities of such issuer, or who con-
tracts with the issuer to find purchasers for such securities, with
a view to the public distribution of such securities, or who con-
tracts with an issuer to act as agent for such issuer for the public
distribution of such securities of such issuer.

As used in this paragraph (n) the term " issuer " shall include,
in addition to an issuer, any person directly or indirectly controlling
or controlled by the issuer, or any person under direct or indirect
common control with the issuer.

(o) The term " selling syndicate " shall mean any syndicate
formed in connection with a public offering, to distribute all or
part of a new issue of securities by sales made directly to the public
by or through participants in such syndicate under an agreement
which imposes a financial commitment upon participants in such
syndicate to purchase any such securities.

(p) The term "selling group" shall mean any group formed in
connection with a public offering, to distribute all or part of a new
issue of securities by sales made directly to the public by or through
members of such selling group, under an agreement which imposes
no financial commitment on the members of such group to purchase
any such securities except as they may elect to do so.

(q) The term " manager '" used in relation to a selling syndicate
or selling group shall mean the person or persons named as manager
or managers in the agreement under which such syndicate or group
is formed.

(r) The term "person" shall include any natural person, copart-
nership, corporation, association, or other entity.

(s) The term " salesman " shall mean any officer, employee, or
agent (other than another investment banker) of an investment
banker, who offers securities for sale to an}' person other than
another investment banker.

(t) The term " interim certificate " or " interim receipt " shall mean
any instrument in writing delivered to a purchaser against payment
in connection with the public distribution of a nevr issue of secur-
ities and calling for the future delivery of such securities and ex-
ecuted by either an originator, the issuer of the securities called for
by such interim certificates or interim receipts, or a corporate trustee.

1. The term " interim certificate " shall mean such instruments
in writing when the securities called for thereby are delivered in

665

temporary or definitive form to the person executing the interim
certificate prior to or concurrently with such execution.

2. The term " interim receipt " shall mean such instruments in
writing- when the securities called for thereby are not so delivered
to the person executing the interim receipt prior to or concurrently
with such execution.

Article III — General Principles

In addition to the Rules, the General Principles set forth in this
Article III shall be a guide to the Investment Bankers Code Com-
mittee in interpreting, administering, and enforcing the provisions
of the Code and Rules, as well as to the Investment Banker himself
in the conduct of his business under such Code and Rules.

Section 1. Standard of Business Conduct. — To observe, and to
use his best efforts to maintain, high standards of commercial honor
in the investment banking business, and to promote just and equitable
principles of trade and business.

Section 2. Origination of New Issues. — (a) If acting as an orig-
inator, to make such investigation as may be reasonably necessary
to determine the merit of such issue, and to satisfy himself that the
business risk of the investors who purchase such securities is reason-
able and that there are appropriate provisions to safeguard the
interests of such investors.

(b) If distributing a new issue of securities originated by an-
other, to satisfy himself that the investigation required by para-
graph (a) has been made.

Section 3. Information as to all new Issues Except United States
Government and State Issues. — Not to originate nor to participate
in the public distribution of any new issue of securities, other than
securities issued by the United States or by any instrumentality
thereof, or by any State of the United States, unless there is available
to investors, either in a prospectus or from public sources or in some
other manner, adequate information with respect to the issuer, the
nature of its business, its financial condition, the terms of the new
security, and, in addition, all other information required by the
Rules to be contained in the prospectus.

In the case of any security issued by any subdivision or instru-
mentality of any State of the United States, it shall be deemed a
compliance with this principle if there is available to investors either
in a prospectus or otherwise, adequate information with respect to
the terms of the new security and all information required by the
Rules, and if, in addition, where available, the record of tax collec-
tions of such issuer for the preceding three years is included in the
prospectus, if any, or if there is no prospectus, is otherwise disclosed
to each purchaser of such security.

In the case of securities issued by a common carrier which is sub-
ject to the provisions of Section 20a of the Interstate Commerce Act,
as amended, it shall be deemed a compliance with this principle, if
there is available to investors, either in a prospectus or otherwise,
adequate information with respect to the terms of the new security
and all information required by the Rules, and a copy of the last
annual balance sheet and the income and surplus accounts for the

666

last three years of such common carrier as required to, be filed with
the Interstate Commerce Commission, and, if there is available, on
request, to any investor a copy of all reports and orders of the Inter-
state Commerce Commission approving and authorizing the issue of
such securities.

Section 4. Investment Recommendations. — Where an investment
banker recommends to an investor the purchase or exchange of any
security, to have reasonable grounds for believing the security to be
acquired by the investor is a suitable investment for such investor
upon the basis of the facts, if an}7, disclosed by such investor as to
his other security holdings and as to his investment situation and
needs.

Section 5. Sdlesnnen's Compensation. — To compensate his sales-
men in a manner consistent with the application of the principles
set forth in Sections 1 and 4 of this Article.

Section 6. Financial Condition of Issuer. — To keep himself rea-
sonably informed of the financial condition of the issuer of any issue
of securities of which he acted as originator, so long as any material
part of such issue shall be outstanding in the hands of investors,
and to endeavor to cause the issuer to meet his promises and obliga-
tions to investors.

This section is intended to apply in respect to issues of securities
originated prior to the effective date of the Rules as well as to issues
originated thereafter.

Section 7. Written Order or Confirmation. — To require a cus-
tomer, wherever practicable, to give a written order or a written
confirmation of any oral order for any transaction in securities.

Section 8. Charges for Services. — To make his charges for serv-
ices performed, including miscellaneous services, such as collection
of moneys due for principal, dividends, or interest; exchange or
transfer of securities; appraisals; safe-keeping or custody of secur-
ities, and other services, reasonable and not unfairly discriminatory
between customers.

Section 9. /Sinking Fund Provisions. — If an originator of an
issue of bonds or other interest-bearing obligations for distribution
to the public, to cause the issuer to make provision for the retirement
of such issue in whole or in part before maturity, through a sinking
fund or otherwise, where such provision is appropriate to safeguard
the interest of investors who purchase such securities.

Section 10. Delivery of Definitive or Temporary Securities of
Issuer. — In distributing new issues of securities, to deliver as
promptly as possible after the public offering date, definitive or
temporary securities of the issuer.

Section 11. Duration of Selling Syndicates and Selling Groups. —
If the manager of a selling syndicate or selling group, to form such
syndicate or selling group for the shortest period which, in the judg-
ment of the manager, is sufficient for the purpose for which it is
formed.

Article IV — Rules Pertaining Primarily to Origination of

Issues

Section 1. Agreements Required of Issuers. — No investment
banker shall be the originator of any issue of securities (other than

667

any of the classes of securities mentioned in Section 3 of the Secu-
rities Act of 1933 and other than any security issued by a foreign
government or political subdivision thereof) where the aggregate
amount at which such issue is to be offered to the public exceeds
$100,000, unless the issuer of such securities shall agree with the
originator as follows :

(a) Term of Agreements. — To comply with the requirements of
this section so long as any part of such issue of securities shall re-
main outstanding.

(b) Animal Financial Statements. — To cause for each fiscal year
to be prepared by independent public or certified accountants, an
Income Statement. Surplus Statement and Summary of Changes in
Reserves for such fiscal year, and a Balance Sheet as of the end of
such year of the issuer as a separate corporate entity and of each cor-
poration in which it holds, directly or indirectly, a majority of the
voting stock (hereinafter in this section called a subsidiary) together
with such further information as may be necessary to disclose all
intercompany holdings and transactions; or, in lieu thereof, elimi-
nating all intercompany transactions, a similar set of consolidated
financial statements of the issuer, and any or all of its subsidiaries
accompanied by financial statements of the issuer as a separate entity
and of any subsidiary not consolidated.

If any such consolidated statements exclude any subsidiary, (1)
the caption shall indicate the degree of consolidation; (2) the Income
Statement shall show, either in a footnote or otherwise, the issuer's
proportion of the difference between current earnings or losses and
the dividends of such unconsolidated subsidiary for the period ac-
counted for in such Income Statement; and (3) the Balance Sheet
shall show, in a footnote or otherwise, the extent to which the equity
of the issuer in such subsidiary has been increased or diminished
since the date of acquisition as a result of profits, losses, and
distributions.

Such statements shall show the existence of any default in interest
or in sinking fund or amortization payments and any arrears of any
cumulative dividends of the issuer or of any subsidiary whether con-
solidated or unconsolidated.

In case there are any substantial items of profit or loss of a non-
recurring nature, such as those arising from the disposal of capital
assets, they shall be expressely enumerated. If. for any reason, the
examination of the accounts of any subsidiary shall have been made
as of a date different from that of the issuer, that fact shall be stated
either in the certificate of the accountants, or otherwise, together with
a statement as to the extent of their examination of the interim trans-
actions. Insofar as practicable the examination of the accounts of
each subsidiary shall be made by or under the supervision of the
same accountants who examined the accounts of the issuer, but if
the accounts of any subsidiary included in any consolidated state-
ment are examined by public or certified accountants other than
the accountants who examined the accounts of the issuer, such fact
shall be noted in the certificate of the latter. If a consolidated
balance sheet includes assets and liabilities of foreign subsidiaries,
the percentage of total assets and liabilities included which represent
the aggregate assets and liabilities of all such foreign subsidiaries

668

shall be noted on the balance sheet. The accountant's certificates
shall state the basis on which the amounts of foreign subsidiaries
are included in the consolidation and there shall be set forth in the
certificate or in an appended certificate any substantial differences
in accounting practice employed by the foreign subsidiary or sub-
sidiaries insofar as such differences shall be known to the certifying
accountant.

Every balance sheet prepared in accordance with the above shall
disclose the basis used to compute the figures at which the principal
asset items are carried thereon. Where any liability of the issuer
is secured on any assets of the issuer, the balance sheet shall show
that such liability is secured, and if the security consists in whole
or in part of current assets it shall show such fact and the general
nature of such current assets. Any contingent liabilities, not
expressly shown on the balance sheet, shall be shown in a footnote
insofar as good accounting practice may require.

Loans or advances between the issuer and any subsidiary or be-
tween a subsidiary and another subsidiary, whether or not consoli-
dated, shall be shown either as separate items on the appropriate
balance sheets or as footnotes to the consolidated balance sheet.

Amounts due from directors, officers, and employees (not including
normal accounts arising in the ordinary course of business), and
securities of the issuer (if carried as an investment) and securities
of any subsidiary, shall be shown as separate items on the appropriate
balance sheets.

If, for any reason, the issuer or the accountants are unable to
obtain any information required for the preparation of the state-
ments in the manner prescribed such information need not be given,
but the facts as to such inability shall be stated in the certificate of
the accountants.

(c) Publication of Annual Financial Statements. — To publish in
the English language the Income Statement, Surplus Statement,
Summary of Changes in Reserves, and Balance Sheet required in
paragraph (b) of this section with the complete certificate of the
accountants, by releasing copies thereof to the public press, in the
United States of America, and to furnish copies thereof to each
security holder of the issuer upon request as soon as practicable after
the close of the fiscal year.

(d) Stock Dividends. — Not itself, and not to permit any sub-
sidiary, directly or indirectly controlled, to take up as income stock
dividends received at an amount greater than that charged against
earnings, earned surplus, or both of them, by the company paying
such stock dividend.

(e) Surplus of Subsidiaries. — Not to treat earned surplus of a sub-
sidiary created prior to acquisition of such subsidiary as a part of
earned consolidated surplus of the issuer and of its subsidiaries, and
not to credit any dividends declared out of such surplus of the sub-
sidiary to the income account of the issuer or of any other subsidiary.

(f) Intercompany Profits. — To make appropriate reserves, inso-
far as good accounting practice may require, in respect of profits
arising out of all transactions with unconsolidated subsidiaries, in
either the parent company or the consolidated statements mentioned
in paragraph (b).

669

(g) Accounting Changes. — Not to make any material change in
depreciation rates or policies or in accounting principles or in their
application without describing such change in the next succeeding
published balance sheet.

(h) Independent Registrar. — To appoint a bank or trust com-
pany, or other person duly qualified to act, independent of the is-
suer to act as registrar in respect of the issue of stock involved in
such origination and to have all certificates of that issue registered
by such registrar.

(i) Requirement of Trustee and Publication of Substitutions in
Collateral. — To appoint a bank or trust company to act as trustee
or cotrustee under any mortgage or trust indenture under which
such securities are issued ; and that the issuer shall, at least 10 days
prior to any substitution or release of pledged or mortgaged prop-
erty which substantially affects the character or value of the prop-
erty pledged or mortgaged, publish in a daily newspaper of general
circulation published in the city where the trustee has its principal
place of business and also in the city where the issuer has its
principal place of business, notice that such substitution or release
is proposed to be made.

Section 2. Information Regarding Securities Issued by Subdi-
visions of States. — (a) No investment banker shall be the originator
of any new issue of securities issued by a subdivision of any State
of the United States, unless the issuer of such securities shall
furnish such originator with an official statement of the issuer
complying with the requirements of paragraph (b) of this section,
and with the data necessary for the purposes of a legal opinion
complying with the requirements of paragraph (c) of this section.

(b) Such official statement of the issuer shall disclose in the
case of securities payable from ad valorem taxes: (1) the assessed
valuation of the property subject to the taxing power of the issuer;
(2) the total bonded debt of the issuer including the amount of
such issue; (3) the population of such issuer according to the most
recent United States or State census, or if no United States or
State census is available, an estimate of such population; and (4)
the fact, if such be the fact, that the bonded debt of such issuer
does not include the debt of any other subdivision having power
to levy taxes upon any or all of the property subject to the taxing
power of the issuer.

(c) Such originator shall, either himself procure or require the
issuer to procure the opinion of an attorney, other than an officer
or an employee of the issuer, who is satisfactory to such originator,
approving the validity of the issue. Such legal opinion shall con-
tain a clear warning statement in regard to any limitation on the
power of the issuer to tax real estate for the payment of the secu-
rities, if there be any limitation. In the case of securities which
are not payable from ad valorem taxes or which are payable solely
from a special fund, such legal opinion shall state the means or
methods provided for the payment of such securities and whether
there are any prior claims upon such special funds.

(d) The originator of such securities shall make available to in-
vestors, either in the prospectus, if any, or if there is no prospectus,

670

in some other manner. (1) the facts disclosed in such official state-
ment of the issuer; (2) the name of the attorney whose opinion will
be furnished; (3) whether the securities are payable from a limited
tax on real estate or whether they are payable from a special fund
only; and (4) in the case of securities which are issued in anticipa-
tion of the later sale of a refunding issue or issues and where pro-
vision is not to be made for payment of such securities at maturity in
any other manner, the facts in regard thereto.

(e) Xo other investment banker shall participate in the distribu-
tion of any such issue of securities unless the requirements of para-
graphs (a), (b) and (c) of this section shall have been complied
with and unless such participant shall make available to each in-
vestor to whom he offers for sale or sells an}^ such security the in-
formation required by paragraph (cl) of this section to be made
available by the originator to each investor to whom such originator
offers for sale or sells such security.

(f) The originator of any such new issue of securities, and any
other investment banker who shall participate in the distribution of
any such issue, shall, upon request of any purchaser of such security
from such originator or other investment banker, deliver to such
purchaser a certified copy of the official receipt of the treasurer of
the issuer in the form required by the attorney aproving the validity
of said issue, evidencing the payment to the issuer of the purchase
price of said issue of securities and the amount thereof.

Section 3. Interims. — (a) In all cases where interim certificates
or interim receipts signed or executed by an originator are delivered,
any securities or cash received by such originator upon the issuance
of such interim certificates or interim receipts shall (until the securi-
ties called for by such interim certificates or interim receipts are re-
ceived and held, in the manner provided in subdivision (ii) of this
paragraph (a), for the account of the holders of the interim certifi-
cates or interim receipts) be held for the account of the holders of
the interim certificates or interim receipts in the following manner :

(i) Any cash received upon the issuance of interim certificates
or interim receipts shall be deposited in a special account with a
person permitted by law to receive deposits, which person may be the
signer of the interim certificates or interim receipts, if such person
is so qualified.

(ii) Any securities received upon such issuance shall, pending
the delivery of securities called for by the interim certificates or
interim receipts to the holders thereof, be segregated from the other
property of the person signing the interim certificates or interim
receipts in such manner that no person other than the holders of
the interim certificates or interim receipts can assert any right, title,
or interest therein.

(b) In all cases where interim certificates or interim receipts
signed or executed by the issuer of the securities called for by such
certificates or receipts are delivered, such certificates or receipts
shall require the issuer to hold any securities or cash received Upon
the issue thereof in the manner described in the foregoing paragraph
(a) ; provided however, that this sub-paragraph (b) shall not apply
in the case of certificates or receipts issued by national governments.

671

(c) In all cases where interim certificates or interim receipts
signed or executed by a corporate trustee are delivered, such cer-
tificates or receipts shall require the corporate trustee to hold any
securities or cash received upon the issue thereof in the manner in
the foregoing paragraph (a).

(d) All forms of interims specified in the foregoing paragraphs
(a), (b). and (c) shall by their text clearly indicate their precise
nature; the rights of the holders thereof; the security and the
amount thereof called for; the limitation of time for delivery of
securities called for. if appropriate: the redemption or repayment
provisions, if appropriate; provisions for payment of interest, if
any; negotiability, transferability or registration provisions, if any;
assignment form, if appropriate; and the name of the person sign-
ing or executing such interim.

(e) Any investment banker who in connection with the public
distribution of a new issue of securities receives any payment from
any purchaser of such securities in advance of delivery of such
securities in temporary or definitive form, or in advance of the deliv-
ery of interim certificates or interim receipts calling for the future
deliver}^ of such security, shall deliver to such purchaser onhr a re-
ceipt for the purchase price or memorandum of sale evidencing such
payment; provided, however, that for purposes of economy in ex-
changes or shipping, there may be delivered in advance of such deliv-
ery an instrument to be designated as a " trust receipt " calling for
future delivery of the security in temporary or definitive form, which
" trust receijDt " shall be executed by a corporate trustee and secured
by deposit of cash or collateral with such corporate trustee, Avho shall
hold such cash or collateral for the benefit of the holders of such
" trust receipts " pending delivery of the security in temporary or
definitive form.

(f) No investment banker shall deliver, in connection with the
public distribution of any new securities, to the purchaser of such
securities, any instrument entitling the holders to the future delivery
of such securities, unless such instrument complies with the appro-
priate provisions of this section. The titles " interim certificate " and
kC interim receipt " shall be used only in accordance with the defini-
tions of paragraph (t) of Article II.

Section 4. Titles of New Issues. — An investment banker shall
not be the originator of any new issue of securities (except public
securities) for distribution to investors, or participate in the dis-
tribution of any such new issue, which issue has a title which is
misleading as to the lien, terms, or priority of such issue. If any
new issue of public securities shall have a title which is misleading
as to the lien, terms, or priority of such issue, the facts with regard
thereto shall be stated in the prospectus, if any. or, if there is no
prospectus, in some other manner disclosed to each purchaser of such
security.

Section 5. Interrelated Directorates and Managements. — Any in-
vestment banker who is the originator of a new issue of securities,
shall, if such investment banker or any partner or principal officer
thereof shall be an officer or director of the issuer company, disclose
such fact in the prospectus.

672

Article V — Rules Pertaining Primarily to Selling Syndicates
and Selling Groups in Connection with New Issues of
Securities

Section 1. Statement of Issue Price. — Except as to public secu-
rities where the price received by the issuer is a matter of public
record, the prospectus shall state the price received by the issuer for
any new issue of securities offered for sale to the public, or the for-
mula by which such price can be ascertained, or if there is no pros-
pectus such price or formula shall be disclosed in some other manner
to each person purchasing such new security from any member of
the selling syndicate or selling group.

Section 2. Three-Day Notice of Organization of Selling Syndi-
cate or Selling Group. — Any investment banker proposing to organ-
ize a selling syndicate or a selling group to distribute new securities
other than those of the United States Government or any instru-
mentality thereof or of any State or subdivision or instrumentality
thereof shall mail or deliver or telegraph a copy of the prospectus
or an adequate description of the security to each investment banker
who is to be offered a participation in such syndicate or a member-
ship in such selling group, at such times that, in the usual course of
deliveiw, such prospectus or description will be received by all such
investment bankers on approximately the same day and at least three
days (excluding Sundays and holidays but including the day of
delivery ) before the date on which it shall be proposed to make the
public offering of such securities.

Section 3. Membership in Selling Syndicates and Selling
Groups. — Xo investment banker proposing to organize a selling syn-
dicate or a selling group shall invite or permit any person to be a
participant in such selling syndicate or a member in such selling
group unless such person is an investment banker actually engaged
in the investment banking business.

Section 4. Price. — (a) Each selling s}Tndicate agreement and sell-
ing group agreement shall set forth the price at which the new se-
curities are to be sold to the public or the formula by which such
price can be ascertained. Xo participant in a selling syndicate or
member of a selling group shall, during the life of such selling syndi-
cate or selling group, offer the new securities being distributed by
such syndicate or group at any price below such public offering price.

(b) It shall be deemed a reduction of the offering price mentioned
in paragraph (a) of this section for a participant in a selling syndi-
cate or a member of a selling group to allow any deduction, abate-
ment, concession or commission whatsoever, either directly or in-
directly; provided, that am- investment banker ma}- allow to another
investment banker a commission or concession if and to the extent
that provision is made therefor in the agreement creating the selling
syndicate or the selling group.

(c) In any transaction with any investment banker located in
a foreign country no commission or concession as provided in para-
graph (b) of this section shall be allowed to such foreign investment
banker unless he effectively agrees (1) that, in making any sales,
during the life of the selling syndicate or selling group, to pur-
chasers outside of the United States of the security in connection

673

with which he received such commission or concession, he will
conform to the provisions of paragraphs (a) and (b) of this section
to the same extent as though he were subject to the selling syndicate
or selling group agreement; and (2) that, in making any sales,
during the life of the selling syndicate or selling group, to pur-
chasers within the United States of the security in connection with
which he received such commission or concession, he will conform
to the provisions of this Section 4 and of Sections 6 and 7 of this
Article V to the same extent as though he were subject to the selling
syndicate or selling group agreement, and also (if he received such
commission or concession from a registered investment banker) that
he will conform to the provisions of Section 7 of Article IX to the
same extent as though he were an investment banker registered under
Article X.

(d) Any investment banker located in the United States receiving
a commission or concession as provided in paragraph (b) of this
section shall, in making any sale of the security in connection with
which he received such commission or concession during the life of
the selling syndicate or selling group, be subject to the provisions
of this Section 4 and of Sections 6 and 7 of this Article to the same
extent as though he were a participant in the selling syndicate or a
member of the selling group distributing such security.

Section 5. Presyndicate Sales. — No investment banker shall or-
ganize, manage, or participate in a selling syndicate or selling group
to offer a new issue of securities to the public if, within thirty days
prior to the formation of such syndicate or group, he shall, at a price
lower than the offering price to the public, have sold or given a right
to purchase, or shall have assisted the issuer in selling or giving a
right to purchase, any part of such new issue to any person other
than an investment banker otherwise than as an essential step in the
plan for the sale to the public of such new issues of securities.

Section 6. Trades in Connection with New Issues. — No invest-
ment banker who is a participant in any selling syndicate or a mem-
ber of any selling group shall enter into any agreement or arrange-
ment with any purchaser of the new securities being distributed by
such syndicate or group whereby, either directly or indirectly, as a
condition of the purchase, such investment banker will accept any
other securities (except securities which are being refunded or re-
deemed in connection with or by means of such new issue of securi-
ties, or any securities maturing within six months after the date of
such transaction) in trade in payment of all or any part of the pur-
chase price of such new securities. The foregoing provision shall
not, however, prevent such investment banker from accepting such
other securities as agent for sale, in which case the investment banker
shall make the usual charge for such services and such investment
banker may allow the purchaser of the new securities to apply to-
wards the purchase price thereof any net proceeds realized from the
sale of such other securities.

Section 7. Requirement of Down Payment. — (a) Except as here-
inafter provided in paragraph (c) of this section, whenever a par-
ticipant in a selling syndicate, or a member of a selling group, ac-
cepts a subscription subject to allotment for the purchase of a new
security to be distributed by such selling syndicate or selling group,

674

he shall require the person making the subscription to deposit with
him a down payment of not less than 5% of the public offering price
on the securities subscribed for.

(b) Except as hereinafter provided in paragraph (c) of this sec-
tion, whenever new securities are subscribed for subject to allotment
from the manager by a participant in a selling syndicate or a member
of a selling group he shall at the time of such subscription make a
down payment of not less than 5% of the public offering price.
Such down payments shall be deposited by the manager in a special
account with one or more incorporated banks, trust companies, or
j:>ersons permitted to receive deposits, provided, however, that they
shall in all cases be deposited with a bank, trust company, or person
other than the manager.

(c) No down payment as required by paragraph (a) of this sec-
tion shall be required from any purchaser who may be prevented by
law from making such payment in advance of the delivery of the
security purchased; and the participant or member who accepted
the subscription of such purchaser shall furnish the manager of the
selling syndicate or selling group evidence of such fact satisfactory
to the manager, and in such case such participant or member shall
not be required to make the down payment as required by paragraph
(b) of this section; and the fact that such down payment is not re-
quired in any such case shall not be considered as a concession under
Section 4 of this Article. The requirements of paragraph (b) shall
not be compulsory in the case of a selling syndicate where all the
participants were parties to the purchase from the issuer of the
new security to be distributed.

Section 8. Requirements as to Confirmations of Sales. — No par-
ticipant in a selling syndicate and no member of a selling group
shall confirm a sale or a subscription from any purchaser unless —

(a) Such participant or member has reasonable grounds to be-
lieve that such purchaser is bona fide and responsible ;

(b) A copy of the prospectus, if any, has been delivered to such
purchaser or accompanies the confirmation ;

(c) Such sale does not violate or evade any provision of the sell-
ing syndicate or selling group agreement or of the Rules; and

(d) A partner, duly accredited executive or branch office manager
has approved such sale as complying with paragraphs (a), (b),
and (c) of this section.

Failure of a participant in a selling syndicate or a member of a
selling group to comply with the provisions of the foregoing para-
graphs (a), (b), (c), or (d) of this section, shall not be deemed a
violation of this section if not wilful and if such participant or
member gives notice, as soon as such failure is discovered, to the
manager of the selling syndicate or selling group, stating the cir-
cumstances attending such failure.

Section 9. Certificates to Be Furnished Manager. — Each par-
ticipant in a selling syndicate and each member of a selling group
shall, upon request of the manager, furnish to the manager a cer-
tificate signed by a principal officer or partner of such participant
or member that he has examined the records of sales made by such
participant or member, and that the provisions of Sections 7 and 8
of this Article were complied with in respect of such sales.

675

Section 10. Extension of the Original Period of the Selling Syn-
dicate.— If provision is made in any selling syndicate agreement for
the extension of the original period of the selling syndicate, such
extension shall only become effective upon the consent of partici-
pants in the selling syndicate representing 75% in interest of the
selling syndicate.

Section 11. Prohibition of Participation with Bank Officers. — ■
No investment banker to his knowledge shall participate in any sell-
ing syndicate in which any officer of any bank or trust company
has a participation as an individual.

Section 12. Disclosure of Interest of Directors and Officers of
Issuer. — No investment banker to his knowledge shall participate
in any selling syndicate in which any director or any officer of the
issuer of the new securities with relation to which such selling syndi-
cate was formed has a participation, as an individual, unless he dis-
closes such participation in the prospectus, if any, or if there is no
prospectus then in some other manner, to any person purchasing the
security from such investment banker.

Section 13. Distribution of Syndicate Funds; Expenses. — The
manager of any syndicate shall distribute the amount due. to syndi-
cate participants promptly after the close of the syndicate. Upon
request of any participant, the manager shall render to him a state-
ment of expenses, which statement shall show the aggregate amounts
of: (1) payments to manager, if any; (2) legal expenses; (3) ad-
vertising expenses; (4) expenses for printing, engraving, mailing,
telegrams and cables; and (5) other expenses.

Section 14. Disclosure of Managers Right to Purchase Securi-
ties.— If the manager of any selling syndicate or any selling group
is given the right under the selling syndicate or selling group agree-
ment to bu}^ securities in the open market for account of the selling
syndicate or selling group, such fact shall be disclosed in the pros-
pectus, if any, or if there is no prospectus, then in some other man-
ner, by each participant in the selling syndicate or member of the
selling group to any person purchasing the securities from such
participant or member.

If to the knowledge of the manager of any selling syndicate or
selling group the manager of any other syndicate or group formed
in connection with the distribution of the securities to be distributed
by such selling syndicate or selling group has the right to buy in the
open market any securities of such issue for the account of such other
syndicate or group, then the manager of such selling syndicate or
selling group shall disclose such fact in the prospectus, or, if there
is no prospectus, in some other manner, to each participant in the
selling syndicate or each member of the selling group, and such fact
shall be disclosed in like manner by each participant in the selling
syndicate or each member of the selling group to each person pur-
chasing such securities from such participant or member.

Section 15. Purchases of Securities in Open Market in Anticipa-
tion of Public Offering of New Issue. — Except as to public securities
sold by the issuer thereof at public sale, if either (1) the manager of
any selling syndicate or the manager of a selling group, or (2) to
the knowledge of any such manager, the issuer or originator or any
other syndicate formed in connection with the distribution of any

51699—34 5

676

new issue of securities to be distributed by or through such selling
syndicate or selling group, purchases any of the outstanding secur-
ities of the issuer in the open market within ten days prior to the
date on which such securities are first offered to the public, such
fact shall be disclosed by the manager to all participants in the sell-
ing syndicate or members of the selling group, and shall also be
disclosed, either in the prospectus or in some other manner, by each
participant in the selling syndicate or member of the selling group
to any person purchasing the securities from such participant or
member; provided, however.- that no disclosure shall be required
under this Section 15 of any purchases of outstanding securities of
the issuer made for the purposes of a sinking fund.

Section 16. Disclosure of Interest in Distribution. — Any partici-
pant in a selling syndicate, and any member of a selling group, who
has any direct interest in the distribution of a new security other
than as a member of a selling group, shall disclose such fact, either
in the prospectus or in some other manner, to any person purchasing
the securities from such participant or member.

Section 17. Copies of Selling Syndicate Agreements and Selling
Group Agreements to Be Filed. — Every manager of a selling syn-
dicate or selling group shall, promptly after such selling syndicate
or selling group is formed, file a copy of the selling syndicate agree-
ment or the selling group agreement with the Investment Bankers
Code Committee by mailing such copy, postage prepaid, to said Com-
mittee addressed to its executive office. Copies of selling syndicate
agreements and selling group agreements so filed need not contain
the names of any of the parties thereto, except the manager.

Article VI — Rules Pertaining Primarily to Retail Sales and

Purchases

Section 1. "Over the Counter" Transactions. — In view of the
unusual and complicated nature of " over the counter " transactions,
whether in " listed " or " unlisted " securities, it is provided that if
the investment banker buys for his own account and risk from his
customer, or sells for his own account and risk to his customer, he
shall buy or sell at a price which is fair, taking into consideration
market conditions in respect of such security at the time of the
transaction, the expense of executing the order, and the fact that
he is entitled to a profit ; and if he acts as agent for his customer in
any such transaction, he shall not charge his customer more than a
fair commission or service charge, taking into consideration market
conditions in respect of such security at the time of the transaction
and the value of any service he may have rendered by reason of his
experience in and knowledge of the market for such security.

Section 2. Information to Be Furnished Upon Confirming of
Customer's Orders. — Upon confirming any customer's order for the
purchase or sale of any security if the investment banker (1) is to
act as principal in the transaction; or (2) is controlled by, or con-
trols, or is under common control with, the issuer, the investment
banker shall inform the customer of such fact upon the written
memorandum of such confirmation.

Section 3. Information to be Given Upon Delivery of Memoran-
dum of Transactions. — Any investment banker who has a transaction

677

with a customer involving the purchase or sale of any security shallr
at or before the completion of the transaction, deliver to the customer
a written memorandum of such transaction containing the following
information :

(a) whether such investment banker acted as principal or as agent
for the customer ;

(b) if the investment banker acted as agent for the customer, the
amount of the commission or service charge charged to the customer
by such investment banker, and if another broker has been used, and
any part of the commission has been paid to such other broker, the
amount so paid shall be stated as a separate item ;

(c) if such investment banker acted as agent for the customer,
the name of the person from whom the security Avas purchased or
to whom the security was sold and the day, and the hours between
which, the transaction took place, or that the information referred
to in this paragraph (c) will be furnished upon written request of
the customer for whom the investment banker acted as agent; and

(d) if no written confirmation of the customer's order shall have
been given, the information as required by clause (2) of Section 2
of this Article.

Section 4. Brokerage Transactions. — If in any transaction in-
volving the purchase or sale of any security the investment banker
purports to act as an agent to buy or sell on behalf of a customer,
such investment banker shall not act as a principal in such transac-
tion, nor, without the consent of his customer, represent any other
principal in such transaction.

Section 5. Guarantees. — No investment banker shall, in any trans-
action involving the purchase of any security for the account of the
customer or involving the* sale of any security to a customer, agree
with the customer, either directly or indirectly, to guarantee that
the market value of the security as it was at the time the security
was bought for or by the customer will be maintained, or that the
business of the issuer of such security will be successful in earning
profits, or that the issuer will meet its promises and obligations ; pro-
vided that the restrictions of this section shall not apply in respect
of transactions in any note, draft, bill of exchange, or banker's
acceptance which has a maturity at the time of issuance of not ex-
ceeding nine months, exclusive of days of grace, or any renewal
thereof the maturity of which is likewise limited.

Section 6. Repurchase Agreements. — No investment banker shall,
in any transaction involving the purchase of any security for the
account of a customer or involving the sale of a security to a cus-
tomer, agree with the customer, either directly or indirectly, to
repurchase the security from the customer ; provided that the restric-
tions of this section shall not apply in respect of transactions in
obligations of the United States or any security gauranteed as to
principal or interest by the United States, or of transactions in any
note, draft, bill of exchange, or banker's acceptance which has a
maturity at the time of issuance of not exceeding nine months, ex-
clusive of days of grace, or any renewal thereof the maturity of
which is likewise limited, or to any repurchase agreement with any
person whenever such repurchase agreement is limited to sixty days
and is used as a substitute for borrowing.

678

Section 7. Retail Partial Payment Transactions. — No investment
banker shall take or carry any account or make a transaction for
any customer under any arrangement which contemplates or pro-
vides for the purchase of any security for the account of the cus-
tomer or for the sale of any security to the customer, where payment
for the security is to be made to the investment banker by the
customer over a period of time in installments or by a series of
partial payments unless

(a) In the event such investment banker acts as an agent or
broker in such transaction he shall, immediately, in the regular
course of business, make an actual purchase of the security for the
account of the customer, and shall immediately, in the regular
course of business, take possession or control of such security and
shall maintain possession or control thereof so long as he remains
under obligation to deliver the security to the customer.

(b) In the event such investment banker acts as a principal in such
transaction, he shall, at the time of such transaction, own such
security and shall maintain possession or control thereof so long as
he remains under obligation to deliver the security to the customer.

No investment banker, whether acting as principal or agent, shall
in connection with any transaction referred to in this section make
any agreement with his customer under which the investment banker
shall be allowed to pledge or hypothecate any security for any
amount in excess of the indebtedness of the customer to such invest-
ment banker.

Section 8. Information Received in Other Capacities. — An invest-
ment banker who receives information as to the ownership of securi-
ties in the capacity of paying agent, transfer agent, trustee, or in
other similar capacity, shall under no circumstances make use of such
information for the purpose of soliciting sales or exchanges except at
the request and on behalf of the issuer.

Article VII — Kules Pertaining Primarily to Salesmen

Section 1. Supervision. — Any investment banker who employs any
salesman shall supervise the sales methods of such salesman and his
correspondence in relation to offers of securities for sale to investors ;
and any sale made by any such salesman to any investor, other than
another investment banker, shall be approved by a partner, duly
accredited executive, or branch office manager of such investment
banker. Such approval shall be evidenced by a written endorse-
ment made upon a copy of the memorandum of sale mentioned in
Section 3 of Article VI, and each memorandum so approved shall
be made a part of the permanent records of such investment banker
and retained in his files for at least three years.

Section 2. Experience and Qualifications. — (a) Except as here-
inafter provided in paragraphs (b) and (c) of this section, no in-
vestment banker shall employ any person to act as a salesman unless
(1) such person shall have had at least two years' experience in the
investment banking business or in a business a principal part of
which related to securities; (2) shall be at least twenty-one years
of age; and (3) shall be of good moral character; provided, how-
ever, that any person who has not had two years' experience in the

679

iirvestment banking business or in a business a principal part of
which related to securities but who has been employed by an invest-
ment banker for a period of at least six months, and who is otherwise
qualified as provided in clauses (2) and (3) above in this paragraph
set forth, may be employed by any investment banker as a salesman
if the compensation of the person so employed to act as salesman
shall be a straight salary and shall not include, in whole or in part,,
commissions upon securities sold.

(b) Any investment banker desiring to employ any person to act
as a salesman, may make an application to the Regional Code Com-
mittee of the district in which such person is to be employed for
permission to employ such person as a salesman. If a majority of
the members of such Committee shall, after due hearing and consid-
eration of such application, be of the opinion that the person pro-
posed to be employed as a salesman is, by reason of his age, experi-
ence, standing and reputation, fully qualified to act as a salesman,
such committee may in writing advise the investment banker who
made such application to that effect, in which event such investment
banker may employ such person without regard to any of the require-
ments of paragraph (a) of this section except the requirement set
forth in clause (3) thereof.

(c) Nothing contained in either paragraph (a) or (b) of this
section shall be construed to prevent any investment banker* from
continuing to employ as a salesman any person who is so employed
by such investment banker at the effective date of the Rules.

Section 3. /Solicitation at Residences. — No salesman shall call in
person upon, or telephone to, any customer or prospective customer
at his home or residence for the purpose of selling to, or offering to
sell to, or soliciting an offer to buy from such customer or prospec-
tive customer, unless such customer or prospective customer shall
have previously given written permission therefor to the investment
banker employing such salesman. As used in this section the term
" salesman " shall include any investment banker, or any partner,
officer, or employee thereof who does any act or thing in this section
described. This section shall not apply to the solicitation of business
persons, retired or professional persons, or farmers.

Section 4. Orders taken by Salesmen. — Any investment banker
who employs an}' salesman shall require that all orders taken by
such salesman for the purchase of or subscription to any security
shall be subject to acceptance and confirmation by such investment
banker.

Article XTI1 — Rules Pertaining Primarily to Investment

Companies

Section 1. If any investment banker has agreed to manage, or
give investment advice to the management of an investment company
(sometimes known as an "investment trust") all or part of the
securities of which are held by the public, or if any partner or
officer or employee of any investment banker is an officer or director
of any investment company all or part of the securities of which
are held by the public.

(a) Such investment banker shall not for his own account sell to
or purchase from such investment company any securities unless a

680

majority of the members of the board of directors of such invest-
ment company are not such partners, officers, or employees, and
unless the transaction is previously approved after full disclosure
by a majority of such members of the board of directors of the
investment company.

(b) Such investment banker shall use his best efforts to cause the
investment company to prepare and distribute to its stockholders
quarterly statements and annual financial statements, such annual
statements to conform to the standards for such annual statements
required by Section 1 of Article IV hereof.

(c) If such investment banker has received any compensation or
commission for acting as agent for the investment company, or if
such investment company has purchased from or sold to such invest-
ment banker any securities, or if the investment company has en-
gaged in any other transaction in which the investment banker has a
financial interest, the investment banker shall use his best efforts to
see that full disclosure of such transactions is made by the company
to the stockholders at an annual or special meeting. Where the
investment banker has acted simply as broker for the execution of
orders on a securities exchange it shall be sufficient disclosure if the
total amount of securities dealt in and the total amount of commis-
sions received shall be stated.

(d) Such investment banker shall not enter into any management
or advisory service contract with such investment company provid-
ing for the payment to the investment banker of any fee or for any
other compensation for managing or advising the management of
the investment company unless the contract therefor has been sub-
mitted to and approved by the stockholders of the investment com-
pany.

(e) Such investment banker shall use his best efforts to cause the
investment company not to use the term " trust " as part of the title
of such investment company unless the use of the term " trust " is
justified as a matter of Law.

Article IX — Miscellaneous Rules

Section 1. Investment Management. — Xo investment banker who
is receiving a fee for managing the account of any customer or for ad-
vising a customer with respect to his investments shall sell to, or
buy from, such customer for his own account or as agent for any
other person unless he shall have obtained the previous written
or telegraphic approval of such customer to each such transaction.

Section 2. Discretionary Accounts. — No investment banker who
is authorized to purchase or sell securities for account of a customer
in his discretion shall sell to, or buy from, such customer for his own
account or as agent for any other person unless he shall have ob-
tained the previous written or telegraphic approval of such cus-
tomer to each such transaction.

Section 3. Segregation of Agency Funds. — Any investment banker
acting as sinking fund agent, principal or coupon paying agent,
dividend paying agent, or in any similar capacity, who holds any
funds or securities in any such capacity shall hold such funds or
securities as trust funds or trust securities unless the terms of such
agency agreement expressly otherwise provide.

681

Section 4. Quotations. — No investment banker shall publish or
circulate, or cause to be published or circulated, any notice, circular,
advertisement, newspaper article, investment service, or communica-
tion of any kind which purports to quote or to give a quotation
of any transaction as a purchase or sale of any security unless such
investment banker believes that such transaction was a bona fide
purchase and sale of such security, or which purports to quote the
bid price or asked price for any security, unless such investment
banker believes that such quotation represents a bona fide bid for, or
offer of, such security. If nominal quotations are used or given
they shall be clearly stated to be only nominal quotations.

Section 5. Offers to Buy and Sell. — No investment banker shall
make any offer to buy or sell any security at a stated price from
or to any person unless such investment banker is prepared to pur-
chase or sell, as the case may be, at such price.

Section 6. Compensation omd Gratuities. — No investment banker
shall, directly or indirectly, give, permit to be given, or offer to give,
anything of value —

(a) to any employee, agent, or representative of another person
for the purpose of influencing or rewarding the act of such em-
ployee, agent, or representative in relation to the business of the
employer of such employee, the principal of such agent, or the
represented party, without the knowledge and consent of such em-
ployer, principal, or represented party ; or

(b) to any officer or employee of any bank, trust company, or
insurance company except for services actually rendered or to be
rendered, and in no case without the knowledge and consent of such
bank, trust company, or insurance company ; or

(c) to any person for the purpose of influencing or rewarding the
action of such person in connection with the publication or circula-
tion in any newspaper, investment service, or similar publication
of any matter which has, or is intended to have, an effect upon the
market price of any security, provided that this paragraph (c) shall
not be construed to apply to matter which is clearly paid advertis-
ing; or

(d) to any director, official, officer, or employee of any issuer,
for the purpose of influencing or rewarding the action of any such
director, official, officer, or employee, in connection with the issue
or sale by such issuer or any person controlled by such issuer of
any new securities of such issuer or of any such controlled person.

For the purposes of this section the giving of anything of value
to a member of the family of any person shall be regarded as the
giving of a thing of value to such person.

In order to comply with the requirements of the National Re-
covery Administration it is expressly stated that nothing in this
Section 6 shall be construed to apply to the free and general dis-
tribution of articles commonly used for advertising.

Section 7. Registered Investment Bankers. — (a) No registered in-
vestment banker shall, in any transaction with any investment banker
not registered under Article X hereof, allow or grant to such non-
registered investment banker any allowance, commission, or discount
usually and customarily to be allowed to another dealer; nor shall
any registered investment banker join with any investment banker

682

not registered under Article X hereof in any syndicate or group
contemplating distribution to the public of any issue of securities;
nor shall any registered investment banker sell any security to or
buAT any security from any investment banker not registered under
Article' X hereof, except at the same price at which at the time of
such transaction such registered investment banker would buy or sell
such security, as the case may be, from or to a person who is a mem-
ber of the public not engaged in the investment banking business.

(b) The provisions of paragraph (a) of this Section 7 shall not
apply to an investment banker in a foreign country who is not
eligible for registration under Article X hereof, but in any trans-
action with any such foreign investment banker, where an allowance,
commission, or discount is allowed, a registered investment banker
shall as a condition to such transaction secure from such foreign
investment banker an agreement that, in making any sales to pur-
chasers within the United States of securities acquired as a result
of such transaction, he shall conform to the provisions of this Section
7 to the same extent as though he were an investment banker regis-
tered under Article X.

(c) No investment banker who is not a registered investment
banker shall represent that he is a registered investment banker,
and no registered investment banker shall advertise or hold himself
out to the public as a registered investment banker except as shall
be permitted by regulations from time to time prescribed by the
Investment Bankers Code Committee.

Section 8. District Rules. — Every investment banker shall, with
respect to any transaction in any district, comply with any addi-
tional Rule established in such district as provided in Sections 5,
6. and 7 of Article XI hereof.

Article X — Registration of Investment Bankers

Section 1. Registration Agreement. — Each investment banker
who registers under this Article thereby agrees with every other
investment banker who registers under this Article to comply with
all decisions and interpretative rulings of the Investment Bankers
Code Committee under any provisions of this Article, and to comply
with the Rules :

For any failure to so comply the registered investment banker
who is guilty of such failure shall be subject to the penalties pre-
scribed in Section 8 of this Article X, but such failure shall not,
in itself, give rise to any civil liability to any other registered
investment banker, or to any other person.

Section 2. Eligibility for Registration. — Any investment banker
who is actually engaged in the investment banking business in the
United States shall be eligible to be registered under this Article.

If the principal office of any such person is located in a foreign
country, any branch office in the United States may be designated
as a principal office for the purposes of this Article.

Section 3. Applications for Registration. — Any investment
banker desiring to be registered, shall file with the Regional Code
Committee of the district in which the principal office of the appli-
cant is located, an application in such form as shall be prescribed

683

by the Investment Bankers Code Committee and approved by the
Administrator. Such application shall be in writing, in duplicate,
stating —

(a) The name of the applicant;

(b) The address of the principal office and of all branch offices
of the applicant ;

(c) If the applicant be a partnership, the names, addresses, and
business addresses of the partners, including special or limited part-
ners, specifying as to each whether he is a general or limited partner;

(d) If the applicant is other than an individual or partnership,
the name of the State or country where the applicant is incorporated
or organized, and the names, residences and business addresses of
its directors and principal officers and of each stockholder owning
more than 10% of any class of the capital stock of such applicant;
and

(e) The length of time the applicant or its predecessors have been
engaged in the investment banking business.

Section 4. Supplementary Statements. — In the event that any
change shall take place in the personnel of the partners, directors,
principal officers or stockholders of any registered investment banker
with respect to whom information is required by the provisions of
Section 3 of this Article to be given, such investment banker shall,
within thirty days after such change has occurred, file with the
Regional Code Committee of the district in which the principal
office of such investment banker is located, a supplemental statement
in writing, in duplicate, setting forth all such changes in personnel,
and the information required by paragraphs (c) and (d) of Section
3 of this Article with respect to any such new partner, director, or
principal officer.

Section 5. Action on Applications by Regional Code Committee. —
Upon the receipt of any application for registration the Regional
Code Committee shall cause such investigation to be made as such
Committee may deem necessary and proper to determine if such
applicant is actually engaged in the investment banking business,
and if the facts stated in such application are true and complete;
and said Committee shall, if requested by the applicant, give the
applicant a hearing thereon. As soon as may be practicable there-
after, such Committee shall forward one copy of such application to
the Investment Bankers Code Committee with a certificate of the
action of such Regional Code Committee with relation thereto.

Section 6. Action on Applications by Investment Bankers Code
Committee. — Upon receipt of any application for registration by the
Investment Bankers Code Committee, as provided in Section 5 of this
Article, the Investment Bankers Code Committee shall, if satisfied
that the applicant is eligible to be registered in accordance with the
requirements of Section 2 of this Article, and that no untrue state-
ment has been made in the application, register such applicant as a
registered investment banker under this Article. The said Commit-
tee shall at the request of the applicant, give the applicant a hearing
thereon, at which hearing the applicant shall be entitled to be heard
in person and by counsel, and to submit any matters which he
may desire to present.

684

Section 7. Complaints. — Every registered investment banker shall
keep in each office maintained by him a copy of the Code and of the
Rules and of all amendments from time to time made thereto, and
of interpretative rulings made by the Investment Bankers Code Com-
mittee and approved by the Administrator, which shall be available
for the examination of any customer who makes request therefor.

Any person feeling aggrieved by any act of any registered invest-
ment banker may complain in regard thereto to any Regional Code
Committee. If such Regional Code Committee is in a district other
than the district where the principal office of such investment banker
shall be located, such Committee shall make such preliminary inves-
tigation in regard to the complaint as may be practicable and shall
forward the complaint and the findings of such Committee to the
Regional Code Committee of the district in which is located the
principal office of the investment banker against whom the complaint
is made, which latter Committee shall thereupon proceed to investi-
gate the matter and to conduct such hearings in regard thereto as it
may deem necessary and proper.

When airy complaint is filed against any registered investment
banker with any Regional Code Committee of the district in which
the principal office of such investment banker is located, or when
any complaint is forwarded to such Committee from any other
Regional Code Committee, notice shall be given in writing to the
investment banker complained against, specifying the nature of the
charges and fixing a date for a hearing. Such Committee may make
such investigations in regard to the matter as it may deem necessary
and proper, provided any investment banker who is involved in such
charges shall be entitled to be heard in person and by counsel, and
to submit any matters which he may desire to present.

If any Regional Code Committee of the district in which the prin-
cipal office of any registered investment banker complained against
is located shall determine that there has been a violation of the Code
or of these Rules or of any amendment thereto, or of any interpreta-
tive ruling made by the Investment Bankers Code Committee and
approved by the Administrator, such Committee shall transmit a
report of its findings and the evidence adduced, together with its
recommendations, to the Investment Bankers Code Committee for
action by that Committee in regard to the matter.

If any registered investment banker complained against shall so
request, the Investment Bankers Code Committee shall grant such
investment banker a hearing, at which hearing such investment
banker shall be entitled to be heard in person and by counsel, and
to submit any matters which he may desire to present.

For the purpose of investigating complaints against registered
investment bankers, the Investment Bankers Code Committee, and
any agency authorized by it, shall have the right to require the in-
vestment banker to submit a report in writing in regard to the matter
involved in the complaint, and such Committee shall have the right
in the manner and to the extent provided by the by-laws of the Com-
mittee when approved by the Administrator to inspect the books,
records, and accounts of such investment banker with relation to the
matters involved in the complaint. Any refusal on the part of any
registered investment banker to make any report as called for under

685

this section, or to permit an inspection of books, records, and ac-
counts, as may be validly called for under this section, shall be
sufficient cause for suspending or canceling the registration of such
investment banker.

Section 8. Penalties. — (a) The Investment Bankers Code Com-
mittee, in the administration and enforcement of this Article, may
prescribe penalties not in excess of $500.00 for each violation, against
any registered investment banker for any violation of the Rules or
for any neglect or refusal to comply with orders, directions, or
decisions of the Investment Bankers Code Committee for the en-
forcement of the Rules, including interpretative rulings made by
said Committee and approved by the Administrator, or suspend the
registration of such investment banker for a definite period, or
cancel the registration of such investment banker, as such Committee
may, in its discretion, deem to be just.

(b) The Investment Bankers Code Committee may cancel the
registration of any investment banker for any cause for which regis-
tration could be refused as provided in Section 2 of this Article.

(c) The Investment Bankers Code Committee may impose a fine
not in excess of $500 for each violation against any registered in-
vestment banker, or may suspend the registration of any such invest-
ment banker for a definite period, or may cancel the registration of
any such investment banker, if. in the opinion of said Committee,
such investment banker has been guilty of repeated violations of
the principles contained in Article III hereof. Within the meaning
of this paragraph, it shall be deemed to be a repeated violation of
such principles by a registered investment banker if such investment
banker, having been notified by the Investment Bankers Code Com-
mittee that he is violating or has violated a principle, continues
thereafter to violate such principle.

(d) In all proceedings under this Section the Investment Bankers
Code Committee shall grant any accused investment banker the op-
portunity to have a hearing, at which hearing such investment
banker shall be entitled to be heard in person and by counsel, and
to submit am^ matter which he may desire to present and a full rec-
ord shall be kept of the proceedings.

(e) In any case where the Investment Bankers Code Committee
shall impose any fine against any registered investment banker or
shall suspend or cancel the registration of any registered investment
banker, the registered investment banker against whom such fine is
imposed or whose registration shall be suspended or cancelled shall
have the right to appeal to the Administrator for a review of the
facts upon which the action of the Investment Bankers Code Com-
mittee was based in the matter of the imposition of such fine or the
suspension or cancellation of such registration, and the Administra-
tor shall have the right, in his discretion, to stay the effect of the
action of the said Committee until the further order or the final ac-
tion on the matter by the Administrator, to review the facts as found
by the Investment Bankers Code Committee, and to take further evi-
dence, if he deems necessary, and the Administrator may modify,
affirm, or set aside the action of the Investment Bankers Code
Committee in respect of such fine, suspension, or cancellation of
registration.

686

Section 9. Procedure. — The Investment Bankers Code Committee
shall determine the manner and form of its proceedings to be con-
ducted under this Article, and may consider and take action upon
anv matter at any regular meeting or at any special meeting, and in
holding any hearing or conducting any investigation under this
Article said Committee may act by one or more duly designated mem-
bers, but in such event a report of the facts as found shall be sub-
mitted to a meeting of the full Committee for its final action.

No member of any Regional Code Committee or of the Investment
Bankers Code Committee shall in any manner, directly or indirectly,
participate in the determination of any question affecting his per-
sonal interests, or the interest of any person in whom he is directly
or indirectly interested.

Section io. Powers. — The Investment Bankers Code Committee
shall be vested with all the powers necessary and appropriate to
carry out the provisions of this Article, and it may adopt such rules,
issue such orders and directions, and make such decisions as it shall
deem proper and appropriate therefor.

Section 11. Interpretative Rulings. — The Investment Bankers
Code Committee may, from time to time, present to the Adminis-
trator proposed interpretative rulings based on the Rules, which
rulings shall be made in the light of the general principles set out
in Article III hereof, and said Committee is hereby authorized to
give a liberal interpretation of the Rules, according to the spirit
and intent thereof, in order to effectuate the policy and purposes
of this Article. Such interpretative rulings shall, upon approval
by the Administrator, become operative as part of the Rules appli-
cable to registered investment bankers as provided in Section 1 of
this Article X.

Section 12. The List. — The Investment Bankers Code Committee
shall furnish to each registered investment banker a list of all regis-
tered investment bankers and of all suspensions and cancellations of
registrants.

Any registered investment banker may, at any time, withdraw
from such registration and by so doing relieve himself of any further
obligation as a registered investment banker upon giving notice in
writing to the Regional Code Committee of the district in which his
principal office is located and to the Investment Bankers Code Com-
mittee of his desire to so withdraw and upon paying any amounts
due from him.

Section 13. Expenses of Committee. — Every registered investment
banker agrees to make to the Investment Bankers Code Committee
from time to time contributions to defray the expenses of the admin-
istration and enforcement of the Code and the Rules in the same
manner provided in Section 6 of Article III of the Code.

Article XI — Administration

Section 1. Statistics. — In order to provide statistical informa-
tion regarding investment conditions from time to time, the Invest-
ment Bankers Code Committee is hereby authorized, within its dis-
cretion, to select a Confidential Agency to obtain from all investment
bankers certified reports of such character and in such form as the
Investment Bankers Code Committee may prescribe. Such Con-

687

fidential Agency shall be in no way engaged in the investment bank-
ing business or interested in or connected with any investment
banker. All such information so received shall be held as secret and
confidential between such Confidential Agency and the reporting
investment banker.

Such Confidential Agency shall analyze and digest the reports,
and shall disclose to the Investment Bankers Code Committee only
the general findings, which shall be available to all investment
bankers who assent to the Code and to all registered investment
bankers.

Section 2. Regional Code Committees. —

(a) Local Districts. — In order to facilitate the administration and
enforcement of the Code and Rules, local districts are hereby estab-
lished, the boundaries of which districts shall be as set forth in
Schedule A. appended hereto. The Investment Bankers Code Com-
mittee may, from time to time, relocate such boundaries, and may
increase or decrease the number of such districts.

(b) Regional Code Committees. — In each district established as
provided in paragraph (a) of this section, there shall be organized
a Regional Code Committee as hereinafter provided in this para-
graph. The number of members of each of said Regional Code
Committees shall be either three, five, or seven persons as determined
by the Investment Bankers Code Committee. Said members shall
be elected by vote of investment bankers assenting to the Code and
having their principal places of business within the district for
which such election is being held. Nominations of persons to be
elected shall be made by the Investment Bankers Code Committee, as
follows: If the number to be elected is three, the nominations shall
consist of five persons; if the number to be elected is five, the nomi-
nations shall consist of eight persons; and if the number to be
elected is seven, the nominations shall consist of eleven persons. No
person shall be nominated unless he is a person occupying an active
executive office or position in the organization of an investment
banker assenting to the Code and is a person having his place of
business in the district for which he is nominated.

The Investment Bankers Code Committee shall cause a printed bal-
lot containing the names of all persons nominated in the manner
specified to be mailed to each investment banker assenting to the
Code and having his principal place of business in the district for
which the election is to be held. Such ballots, in order to be counted,
must be returned to such place and on or before such date as shall
be fixed by the Investment Bankers Code Committee, and to be at
least fourteen days after the date of the mailing of said ballots.
Each investment banker entitled to vote at such election shall have
the right to cast one vote for each of the number of persons who are
to be elected, and the persons receiving the greatest number of votes,
being that number of persons to be elected, shall thereby be elected
members of said Committee. The term of office of each person so
elected shall be fixed by the Investment Bankers Code Committee
and specified in the nomination, and he shall serve until his successor
shall be elected. Any vacancy occurring in the membership of any
Regional Code Committee shall be filled by appointment made by the
Investment Bankers Code Committee for the unexpired term.

688

The Regional Code Committees shall report all of tiieir actions
to and shall at all times and in all matters be answerable to the
Investment Bankers Code Committee.

Section 3. General Duties. — Such Regional Code Committees
shall act as agencies of the Investment Bankers Code Committee for
the administration and enforcement of the Code and the Rules in
their respective districts.

Section 4. Expenses. — Members of such Regional Code Commit-
tees shall serve without pay. Funds to meet the necessary and actual
expenses of each such Regional Committee for administering this
Code will be provided by the Investment Bankers Code Committee
out of the funds collected by said Committee under the provisions
of Section 6 of Article III of the Code and Section 13 of Article X
hereof, but all such expenses shall be subject to approval by the
Investment Bankers Code Committee. Any such Regional Code
Committee may be authorized to raise additional funds for such ex-
penses in accordance with regulations prescribed by the Investment
Bankers Code Committee with the approval of the Administrator.

Section 5. Additional Local Rules. — Any such Regional Code
Committee may. from time to time, propose additions to the general
rules of fair practice herein provided, as may be deemed desirable
for such district and are not inconsistent with the provisions of the
Code or of the Rules. Any such Additional Rules of fair practice
shall be submitted to a vote of all investment bankers located in such
district who have assented to the Code, and if approved by a majority
of those voting, shall be submitted to the Investment Bankers Code
Committee and upon approval thereof by the Investment Bankers
Code Committee and by the Administrator, such additional rules
shall become effective in said district.

Section 6. Modification of Additional Local Rules. — Any such
Regional Code Committee may, from time to time, propose a modi-
fication of any addition to the rules of fair practice for its district,
or of any portion of such additional rules, and upon approval of
any such proposed modification by the Investment Bankers Code
Committee and by the Administrator, such modification shall become
effective in said district.

Section 7. Cancellation of Local Rules. — The Investment Bank-
ers Code Committee, with the approval of the Administrator, may at
any time, and from time to time, cancel any addition to the rules
of fair practice for any district, or any portion of any such addi-
tional rule.

Section 8. Investigations. — Each Regional Code Committee may,
of its own volition, and shall, at the request of the Investment Bank-
ers Code Committee, investigate any matter pertaining to an al-
leged violation of the provisions of the Code, or of any rule of fair
practice effective in said district. In making any such investiga-
tion such Regional Code Committee shall act as a fact-finding body,
and in any case where in the opinion of said Committee a violation
has occurred, such Committee shall report its findings of fact, to-
gether with its recommendations, to the Investment Bankers Code
Committee. In any instances where the Investment Bankers Code
Committee shall direct any Regional Code Committee to make any
investigation, as provided in this Section 8, it shall be the duty of

689

the Investment Bankers Code Committee to provide or make provi-
sion for the expense of such investigation in accordance with the
requirements of Section 4 of this Article.

Section 9. Privileged C ommiunicatlom. — (a) Any communica-
tion from a customer of any investment banker addressed either to
the Investment Bankers Code Committee or to any Regional Code
Committee, with respect to or involving any complaint against any
such investment banker, shall be deemed to be a privileged com-
munication, and the name of the writer of such communication shall
not be disclosed by any such Committee : provided, however, that
the name of the writer of such communication and the nature of the
charges contained therein may be made known to the accused in-
vestment banker or in connection with proceedings arising out of
said complaint.

(b) No communication from any investment banker addressed
either to the Investment Bankers Code Committee or to any Regional
Code Committee with respect to or involving any complaint against
any other investment banker, shall be deemed to be a privileged
communication, and any such communication may be dealt with by
said Committees, or either of them, as said Committees, or either of
them, may deem just and proper in the circumstances, but in any
proceeding arising out of any such complaint the accused invest-
ment banker shall enjoy the right to be informed of the name of his
accuser, of the nature and cause of the accusation, and to be con-
fronted with the investment banker making such accusation.

Section 10. Waiver of Rules. — Any rule contained in the supple-
mentary provisions or hereafter established pursuant to these sup-
plementary provisions may be waived in whole or in part, in any
particular case, by the Investment Bankers Code Committee, in the
manner provided in this Section 10. Any investment banker desir-
ing to secure such waiver in any particular case shall make written
application therefor to the Investment Bankers Code Committee.
The Committee shall consider such application at its next meeting,
or the Chairman of the Committee may, by mail, or otherwise, ask
each member of the Committee for his individual opinion, and if a
majority of all the members of the Committee shall be of the opinion
that such waiver will not permit any unfair trade practice, and will
not be detrimental to the public interest, the Committee after the
approval of the Administrator shall advise the applicant investment
banker in writing to that effect, and upon receipt of such advice such
waiver shall become effective, with respect to the particular trans-
action, to the extent provided therein.

Section 11. Liability of Members of Investment Bankers Code
Committee and Regional Code Committees. — No member of the In-
vestment Bankers Code Committee or of any Regional Code Commit-
tee shall be liable, except for willful fraud, to any investment
banker or to any other person for any action taken by such member
in his capacity as a member of any such Committee in connection
with the administration or enforcement of the Code or Rules or of
any provision of these supplementary provisions.

Section 12. Special Committees. — At any time upon there being-
filed with it a petition signed by not less than ten investment bankers
assenting to the Code, the Investment Bankers Code Committee shall

690

appoint a committee composed of assenting investment bankers to
investigate and report upon any special problem set forth in said
petition. If the question to be investigated involves any particular
branch of the investment business a majority of the committee so
appointed shall be members actively interested in the particular
branch of the investment business involved. The Committee so ap-
pointed shall report to the Investment Bankers Code Committee and
the Code Committee shall give consideration to the recommenda-
tions in said report.

Section 13. Labor Complaints. — Until such time as its organiza-
tion for handling labor complaints is approved by the Adminis-
tration, neither the Investment Bankers Code Committee, nor any
Kegional Code Committee shall attempt to investigate or adjust
complaints of violations of the labor provisions of this Code, and
all such complaints shall be referred to the State Director for Com-
pliance having jurisdiction in the area where the complaint arises,
or otherwise handled as The National Recovery Administration may,
by rules or orders hereafter established, direct.

Approved Code No. 141 — Amendment No. 2.
Registry No. 1707-04.

SCHEDULE "A"

Territorial boundaries of the several local districts established as provided
in Section 2 of Article XI, are as follows :

1. California District: State of California.

2. Central States District: States of Illinois, Indiana, Iowa, Nebraska, and
Wisconsin.

3. Eastern Pennsylvania District : Counties of Tioga, Lycoming, Union,
Snyder, Juaniata, Perry, Cumberland, and Adams in the State of Pennsylvania
and all the remainder of the said State lying east of such counties, and the
State of Delaware.

4. Michigan District : State of Michigan.

5. Minnesota District: States of Minnesota, Montana, North Dakota, and
South Dakota.

6. Mississippi Valley District: The counties of Schuyler, Adair, Macon,
Randolph, Boone, Cole, Osage, Maries, Phelps, Dent, Shannon, and Oregon in
the State of Missouri and the remainder of the said State lying east of such
counties ; the States of Kentucky, and Arkansas ; and the counties of Henry,
Benton, Decatur, and Hardin in the State of Tennessee, and the remaining
counties of the State lying west of such counties.

7. New England District : States of Maine, New Hampshire, Vermont, Massa-
chusetts, and Rhode Island.

8. New York District : States of New York, Connecticut, and New Jersey.

9. Northern Ohio District: Counties of Mercer, Auglaize, Hardin, Marion,
Morrow, Knox, Coshocton, Guernsey, and Belmont in the State of Ohio and all
of the remainder of the said State lying north of such counties.

10. Ohio Valley District : Counties of Darke, Shelby, Logan, Union, Delaware,
Licking, Muskingum, Noble, and Monroe in the State of Ohio, and all of the
remainder of the said State lying south of such counties.

11. Pacific Northwest District: States of Oregon, Washington, and Idaho.

12. Rocky Mountain District: States of Colorado, Arizona, Nevada, New
Mexico, Utah, and Wyoming.

13. Southeastern District: States of Maryland, Virginia, West Virginia,
North Carolina, and South Carolina, and the District of Columbia.

14. Southern District : States of Louisiana, Mississippi, Alabama, Georgia,
and Florida ; the counties of Stewart, Houston, Humphreys, Perry and Wayne
in the State of Tennessee and all the remainder of the said State lying east
of such counties ; and the counties of Newton, Jasper, Tyler, Polk, San Jacinto,
Walker, Grimes, Brazos, Milan, Williamson, Burnet, Llano, Mason, Menard,
Schleicher, Crockett, Pecos, and Jeff Davis in the State of Texas and all the
remainder of the State lying south of such counties.

15. Southwestern District : Counties of Putnam, Sullivan, Linn, Chariton,
Howard, Cooper, Moniteau, Miller, Pulaski. Texas, and Howell in the State of
Missouri and all of the remainder of the said State lying west of such counties ;
the States of Kansas and Oklahoma ; and the counties of Sabine, San Augustine,
Angelina, Trinity, Houston, Madison, Robertson, Falls, Bell, Lampasas, San
Saba, McCulloch, Concho, Tom Green. Irion, Reagan, Upton, Crane, Ward,
Culberson, Resbes, Hudspeth, and El Paso in the State of Texas and all the
remainder of the said State lying north of such counties.

16. Western Pennsylvania District : Counties of Potter, Clinton, Center,
Mifflin, Huntingdon, and Franklin in the State of Pennsylvania and all of the
remainder of the said State lying west of such counties.

(691)
51699—34 6

Approved Code No. 9 — Amendment No. 5
AMENDMENT TO CODE OF FAIR COMPETITION

FOR THE

LUMBER AND TIMBER PRODUCTS INDUSTRY

As Approved on March 23, 1934

PRESIDENT ROOSEVELT

EXECUTIVE ORDER

Amendments to the Code of Fair Competition for the Lumber
and Timber Products Industry

An application having been made by the Lumber Code Authority
pursuant to and in full compliance with the provisions of Title I
of the National Industrial Recovery Act, approved June 16, 1933,
for amendment of the Code of Fair Competition for the Lumber
and Timber Products Industries, as heretofore approved by me,
and for the modification of my approval of said Code of Fair
Competition accordingly, and hearings having been held thereon,
and the Administrator having rendered his report recommending
the granting of such application, which carries out the forest con-
servation provisions of Article X of said Code :

FRANKLIN D. ROOSEVELT.

Approval recommended :
Hugh S. Johnson,

A dministrator.

The White House,

March 23, 19$4.

(693)

LETTER OF TRANSMITTAL

The President.

The White House.

Sir: Under the Code of Fair Competition for the Lumber and
Timber Products Industries, as approved by you on August 19,.
1933, the Lumber Code Authority has submitted Amendments Nos.
47 and 48 which are included and attached.

This is a report of the hearing on the foregoing Amendments con-
ducted in Washington on February 26, 1934, in accordance with the
provisions of the National Industrial Recovery Act.

These Amendments recognize the obligation undertaken by the
applicant industries pursuant to Article X of the Code which
reads as follows:

"Article X. Conservation and Sustained Production of Forest
Resources. — The applicant industries undertake, in cooperation with
public and other agencies, to carry out such practicable measures
as may be necessary for the declared purposes of this Code in respect
of conservation and sustained production of forest resources. The
applicant industries shall forthwith request a conference with the
Secretary of Agriculture and such State and other public and other
agencies as he may designate. Said conference shall be requested to
make to the Secretary of Agriculture recommendations of public
measures with the request that he transmit them, with his recom-
mendations, to the President; and to make recommendations for
industrial action to the Authority, which shall promptly take such
action, and shall submit to the President such supplements to this
Code, as it determines to be necessary and feasible to give effect to
said declared purposes. Such supplements shall provide for the initi-
ation and administration of said measures necessary for the conserva-
tion and sustained production of forest resources, by the industries
within each Division, in cooperation with the appropriate State and
Federal authorities. To the extent that said conference may deter-
mine that said measures require the cooperation of federal, state,,
or other public agencies, said measures may to that extent be made
contingent upon such cooperation of public agencies."

From the testimony taken at the hearing, it is apparent that these
Amendments represent a tremendous step toward the establishment
of effective mechanisms necessary to carrying out a successful pro-
gram of conservation and sustained production in one of the Nation's
most important natural resources. As you know so well, the means
of embarking on such a program has long been sought in this
Country, but the divergent interests involved, while seeking a com-
mon goal, defeated each other in its attainment by failing to recon-
cile their opinions in the matter of detail. In the light of this
knowledge, the unanimity of opinion supporting these proposals
revealed at the hearing can only be regarded as promising much in

(694)

695

future achievement. That this reconciliation has been possible is
undoubtedly due more to your interest and leadership than to any
other force.

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

I find that:

(a) The Amendments to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of
the National Industrial Recovery Act including the removal of
obstructions to the free flow of interstate and foreign commerce
which tend to diminish the amount thereof, and will provide for
the general welfare by promoting the organization of industry for
the purpose of cooperative action among trade groups, by inducing
and maintaining united action of labor and management under ade-
quate governmental sanction and supervision, by eliminating unfair
competitive practices, by promoting the fullest possible utilization
of the present productive capacity of industries, by avoiding undue
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) The Code as amended complies in all respects with the per-
tinent provisions of said Title of said Act, including without
limitation Subsection (a) of Section 3, Subsection (a) of Section 7
and Subsection (b) of Section 10 thereof.

(d) The Amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.

(e) The Amendments and the Code as amended are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.

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

From evidence adduced during this hearing and from recommen-
dations and reports of the various Advisory Boards, it is believed
that these Amendments as now proposed and revised are satisfac-
tory to this industry, labor, public and this Administration. It is
recommended, therefore, that these Amendments, as herewith sub-
mitted, be approved.
Respectfully,

Hugh S. Johnson,

Administrator.
Mauch .21, 1934.

AMENDMENT TO CODE OF FAIR COMPETITION FOR THE
LUMBER AND TIMBER PRODUCTS INDUSTRY

Add the following new u Schedule C " to the Code of Fair Com-
petition for the Lumber and Timber Products Industries :

Schedule C — Forest Conservation Code

The following supplements to Article X provide for the initiation
and administration of measures necessary for the conservation and
sustained production of forest resources by persons within each Divi-
sion and Subdivision in cooperation with the appropriate State and
Federal Authorities, it being recognized that the extent to which
these undertakings b}T the lumber and timber products industries
are capable of successful accomplishment is dependent upon the
extent and character of public cooperation in each state.

Section 1. Each Division and each Subdivision having jurisdic-
tion over forest utilization operations shall establish or designate am
agency or agencies to formulate and from time to time to revise rules
of forest practice, and to exercise general supervision over the appli-
cation and enforcement thereof in the operations of the persons of.
the respective Divisions and Subdivisions. Such agencies shall have
as n on- voting, advisory members one representative of each of the
State and Federal organizations which have definite responsibility
under State and Federal laws for forestry or forest protection prac-
tice within the several Divisions and Subdivisions. Each Division'
and each Subdivision shall provide such technical and other qualified
personnel as may be required to furnish necessary information to<
said agencies and persons, to inspect the forest operations of said,
persons, to enforce such rules of forest practice, and otherwise to
carry out the purposes of this Schedule, under the said general super-
vision of said agencies. On or before April 15, 1934, each such
agency shall formulate such rules of forest practice and shall submit
them through the appropriate channels to the Authority for its ap-
proval, provided, however, that prior to or at the time of the submis-
sion of such Rules of Forest Practice to the Authority for its~
approval, such agency shall publish such rules in its Division or
Subdivision and shall take such steps as are reasonably calculated to>
notify all affected parties of the provisions thereof and that objec-
tions to or criticism of such rules may be filed with it or the Authority
within fifteen days after the date of publication. After such ap-
proval the Authority shall publish separately for each Division and
Subdivision, and shall submit to the Administrator together with a
summary of objections filed, approved forest practice rules, which,
on and after June 1. 1934. unless prior to that date such rules shall
have been suspended or disapproved by the Administrator, shall be
obligatory for all persons subject to the jurisdiction of the said

(696)

697

Divisions find Subdivisions, respectively. Upon application by a
Division or Subdivision, or upon its own initiatve to secure com-
pliance with this Schedule and equal application thereof without and
between the several Divisions and Subdivisions, the Authority may
amend such rules of forest practice ; such amendments shall be pub-
lished by the Authority, together with a notice that objections to or
criticisms of such amendments may be filed with the Authority within
fifteen (15) days after the publication thereof and shall be submitted
to the Administrator, together with a summary of the objections and
criticisms filed with it, and shall be effective thirty days after the
date of such publication, unless prior to that date such amendments
shall have been suspended or disapproved by the Administrator.

Section 2. Said rules of forest practice, to insure the conservation
and sustained production of forest resources, shall include practicable
measures to be taken by the operators to safeguard timber and young
growing stock from injury by fire and other destructive forces, to
prevent damage to young trees during logging operations, to provide
for restocking the land after logging if sufficient advance growth
is not already present, and where feasible, to leave some portion of
merchantable timber (usually the less mature trees) as a basis for
growth and the next timber crop. Said rules of forest practice shall
be adequate to secure the purposes of this Schedule, and in a prac-
tical way in accordance with conditions existing in the respective
Divisions and Subdivisions shall secure application of the following
principles :

(a) Fire protection during and immediately following logging is
an indispensable condition for forest regrowth. Responsibility for
adequate provision for control of fires during or immediately follow-
ing logging operations rests upon the individual operator if he is in
any way the cause of such fires. Each operator shall be definitely
responsible for taking practical measures of fire control. Such meas-
ures shall, to the extent necessary to provide adequate protection,
include slash and snag disposal, rules as to use of fire by employees
including smoking in the woods, equipment of logging locomotives
and engines with adequate devices for preventing fires, having avail-
able upon call crews properly equipped to fight fires, closing opera-
tions during exceptionally dry periods, and other precautionary
measures. Where a general fire protection system is in effect, each
operator shall correlate his protection system with the general sys-
tem, but such general system shall not replace the protection system
of such operator, nor shall it relieve him of responsibility for pro-
tecting his own property to the extent that he has created the hazard.
He shall not be considered to be responsible for fire caused by public
carelessness or by inadequate public protection.

(b) To the end that protection against fire and other destructive
forces may be rapidly extended to all forest areas that require pro-
tection, said agencies shall endeavor to secure action on the part of
all operating forest land owners in the direction of cooperating with
public organizations in systematic fire prevention and suppression
and such protective action as may be practicable for protection
against insects and diseases. Such agencies shall also seek to secure
such cooperation on the part of non-operating forest land owners..

698

(c) As much as practicable of the advance growing stock upon the
land in the form of young trees of valuable species below merchant-
able size shall be preserved during logging operations and left with-
out injury for future growth. Each operator shall require his
woods employees to exercise conscious care to reduce damage to
advance growth to the minimum practicable.

(d) To secure natural reproduction, which will usually be ob-
tained where partial cutting is practiced, there shall be left on the
logged areas, where economic and other conditions permit, a suffi-
cient number of trees of desirable species to yield a commercial cut
at reasonable intervals. Under certain conditions, instead of par-
tial cutting, the leaving of seed trees or groups of seed trees on or
adjacent to logged areas may -be sufficient to insure the required re-
growth on the logged areas. If there is an insufficient reserve
stand, or if conditions are otherwise adverse and the prospects of
securing natural reseeding are uncertain, planting may be desirable.

(e) To the extent practicable, partial cutting or selective logging
shall be the general standard for local measures of forest practice.
Said agencies shall without delay, making use of existing informa-
tion, undertake to determine by regions or by forest types, the ex-
tent to which merchantable sizes of trees may wisely be left as part
of the forest growing stock. Upon satisfactory determination of
such conditions said agencies shall promptly establish standards of
practice looking to the attainment of this objective.

In certain regions or forest types, and under certain conditions
which do not justify partial cutting or selective logging, other
methods shall be allowed.

These rules of forest practice shall also apply to persons whose
operations are in timber held under " lease " or " timber cutting
rights " existing prior to the date of the President's approval of this
Schedule, provided that due consideration shall be given to the
ownership equities involved in order to- avoid causing such persons
unreasonable hardship by requiring the leaving of trees of merchant-
able sizes.

(f ) In order to provide flexibility, each operator shall be encour-
aged to communicate to his agency the methods which he proposes
as best suited in his individual operation to achieve the declared
objectives of conservation and sustained production of forest re-
sources, and if such proposed methods are determined by said
agency to equal or excel the regional or type standard methods,
they shall be approved in lieu thereof. This in effect permits modi-
fication of regional or type standards upon submission and approval
of specific individual management plans.

(g) Said agencies shall, each within its own jurisdiction, investi-
gate the feasibility of and shall actively encourage the application
of sustained yield forest management wherever feasible. Sustained
yield forest management is defined as management of specific forest
lands under single ownership or cooperative control within an eco-
nomic unit, under definite management plan which limits timber
cutting to the capacity of such forest lands under existing methods
of management, as determined from existing growing stock and
growth, to provide without interruption or substantial reduction raw
material for industry and community support.

699

(h) Schedule C and the rules of forest practice and any other
rules and regulations adopted pursuant thereto, being adopted in
order to give effect in the public interest to the declared purposes
of Article X may be enforced only by the United States through its
appropriate enforcement agencies or officers. Nothing contained in
this Schedule, or in the rules of forest practice or in any other rule
or regulation adopted pursuant thereto, shall be construed to enlarge,
increase, change or affect the legal duty, liability or responsibility
of any person subject to the jurisdiction of this code to any other
person, firm or corporation, whether or not the latter is subject to
the jurisdiction of this Code, or to give to any such person, firm or
corporation any right of action against any person subject to the
jurisdiction of this code which would not have existed if this Sched-
ule had not been adopted.

Amend Article VIII (k) by adding the following new paragraph
at the end thereof :

" Pursuant to the foregoing each eligible person who makes appli-
cation to be recognized as securing his raw material supply from
forest lands under his ownership or control which are managed on
a sustained yield basis, and who secures from his Division or Sub-
division agency established or designated as provided in Section 1
of Schedule C a certificate showing that he is in good faith con-
ducting his operation upon such basis, shall have his production
allotments, as determined without the benefit of this paragraph,
increased by 10 per cent. If only part of his raw material supply
comes from such sustained yield operation, his increased allotment
shall be that proportion of 10 per cent which the volume of his raw
material coming from such sustained yield operation is of his total
volume. Sustained yield forest management is defined in Sec-
tion 2 (g) of Schedule C. The additional production allotments
provided for in this paragraph shall come from the total national
production quota."

Approved Code No. 9 — Amendment No. 5.
Registry No. 313-1-06.

Approved Code No. 151 — Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION

FOR THE

MILLINERY INDUSTRY

As Approved on March 24, 1934

ORDER

Amendments to Code of Fair Competition for the Millinery

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 certain
amendments to the Code of Fair Competition for the Millinery
Industry, and hearings having been duly held thereon and the an-
nexed report on said amendments, containing findings with respect
thereto, having been made and directed to the President :

NOW, THEREFORE, I, Hugh S. Johnson, Administrator for
Industrial Recovery, on behalf of the President of the United States,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543^-A, dated December
30, 1933, and otherwise ; do hereby incorporate, by reference, said an-
nexed report and do find the said amendments and the Code as con-
stituted after being amended, comply in all respects with the per-
tinent provisions and will tend to promote the policies and purposes
of said Title and said Act, and do hereby order that said amend-
ments be and they are hereby approved, and that the previous
approval of said Code is hereby modified to include an approval
of said Code in its entirety as amended.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
A. D. Whiteside,

Division Administrator.

Washington, D.C.,

March U, 1934.

(701)

REPORT TO THE PRESIDENT

The President.

The White House.

Sir: An application has been duly made pursuant to and in full'
compliance with the provisions of Title I of the National Industrial
Recovery Act for certain amendments to the Code of Fair Compe-
tition for the Millinery Industry, and Hearings were conducted on
said amendments in Washington, D.C. on March 13, 1934, in the
Gridiron Room of the Willard Hotel.

Seven proposed amendments were submitted by the Code Au-
thority but Hearings on one of these, namely; that relating to the
inclusion of the manufacture of children's headwear, was postponed,
until Monday, March 19, 1934, at the request of the Code Authority
and with the consent of all parties concerned.

The first amendment adds a new Section 5 of Article VI, and.
provides that members of the Industry shall be entitled to partici-
pate in and share the benefits of, the activities of the Code Authority
by assenting to and complying with the requirements of the Code
and sustaining their reasonable share of the expenses of its
administration.

The second amendment adds a new subsection (i) to Section 7 of
Article VI, and confers to the Code Authority the power to assess
and collect from members of the Industry an equitable and pro-
portionate payment of the reasonable expenses of maintaining the
Code Authority and its activities.

The third amendment modifies Section 14 of Article VIII, and
prohibits advertising allowances.

The fourth amendment establishes maximum terms of discount
at seven per cent ten days e.o.m.

The fifth amendment modifies Section 13 of Article VIII, and.
provides that all goods are to be shipped f .o.b. city of manufacture..

The sixth amendment modifies Section 16 of Article VIII, and
relates to the charges to be made for trade name labels.

FINDINGS

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

I find that :

(a) The amendments to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of
the National Industrial Recovery Act, including the removal of ob-
structions 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

(702)

703

; purpose of cooperative action among trade groups, by inducing and
maintaining action of labor and management under adequate gov-
ernmental sanction and supervision, by eliminating unfair competi-
tive practices, by promoting the fullest possible utilization of the
present productive capacity of industries by avoiding undue restric-
tion of production (except as may be temporarily required), by
increasing the consumption of industrial and agricultural products
through increasing purchasing power by reducing and relieving
unemployment, by improving standards of labor, and by otherwise
rehabilitating industry.

(b) The Code as amended complies in all respects with the perti-
nent provisions of said title of said Act, including without limita-
tion subsection (a) of Section 3; subsection (a) of Section 7, and
subsection (b) of Section 10 thereof.

(d) The amendments and the Code as amended are not designed
to, and will not permit monopolies or monopolistic practices.

(e) The amendments and the Code as amended, are not designed
to, and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.

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

For these reasons these amendments have been approved.
Kespectfully,

Hugh S. Johnson,

A dminis trator.
March 24, 1934.

AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE MILLINERY INDUSTRY

The Code of Fair Competition for the Millinery Industry is hereby
amended by the following:

Acid to Section 5 of Article VI as follows :

" 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 by
sustaining their reasonable share of the expenses of administration as
shall be determined by the Code Authority, subject to review by the
Administrator, on the bases of volume of business, and/or such other
factors as may be deemed equitable."

Add Subsection (i) to Section 7 of Article VI as follows:

" To assess and collect from members of the Industry an equitable
and proportionate payment of the reasonable expenses of maintain-
ing the Code Authority and its activities."

Amend Section 14 of Article VIII to read as follows :

"No member of the Industry shall pay directly or indirectly any
part of the advertising expenses of a purchaser or prospective pur-
chaser or the agent or agents of such purchaser or prospective pur-
chaser. This prohibition shall not apply, however, to the supplying
of cuts, matrices, and window cards."

Amend Section 12 of Article VIII to read as follows :

" No member of the Industry shall allow any discount in excess of
seven per cent (7%) if paid within ten (10) days, except that e.o.m.
dating may be granted on a seven per cent (7%) ten (10) day basis,,
and payment may be anticipated at the rate of six per cent (6%)
per annum, and all shipments made on or after the 25th day of any
month may bear dating as of the first day of the following month,
but no shipments made prior to the 25th day of any month shall,
under any circumstances, bear such dating. The provisions of this
paragraph shall not be circumvented either directly or indirectly by
bookkeeping methods or otherwise."

Amend Section 13 of Article VIII to read as follows :

"All shipments of millinery by members of the Industry shall be
made f.o.b. city of manufacture."

Add a Section 16 to Article VIII as follows :

" Members of the Industry shall charge for all trade name labels,,
whether or not such labels are on special linings, the additional cost
of such trade name labels and special linings in excess of the mem-
ber's cost of the regular label and lining."

Approved Code No. 151 — Amendment No. 1.
Registry No. 228-03.

(704)

Approved Code No. 41 — Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION

FOR THE

WOMEN'S BELT INDUSTRY

As Approved on March 24, 1934

ORDER

Amendment to Code of Fair Competition for the Women's Belt

Industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of an amend-
ment to a Code of Fair Competition for the Women's Belt Industry,
and hearings having been duly held thereon and the annexed report
on said amendment, containing findings with respect thereto, having
been made and directed to the President :

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
A. D. Whiteside,

Division Administrator.

Washington, D.C.,

March 24, 1934.

(705)

REPORT TO THE PRESIDENT

The President.

The White House.

Sir: The Public Hearing on an amendment to the Code of Fair
Competition for the Women's Belt Industry as proposed by the Code
Authority for this Industry, was conducted on December 21, 1933, in
Room 2062 of the Department of Commerce Building, Washington,
D.C. Every person who requested an appearance was fairly heard
in public in accordance with the regulations of the National Recovery
Administration. There were present several duly authorized repre-
sentatives of the Code Authority for the Industry and other rep-
resentative members of the Industry.

The Code of 'Fair Competition for the Women's Belt Industry,
approved on October 3, 1933. contained only two Trade Practice
Provisions.

Article VI, Section C, of this Code provides that the Code Author-
ity shall study provisions relating to Trade Practices and make rec-
ommendations thereon to the Administrator. Proposed Trade Prac-
tice provisions were accordingly submitted to the Code Authority for
approval and form the entire subject matter of this amendment.

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

I find that :

(a) The amendment to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general
welfare by promoting the organization of industry for the purpose
of cooperative action among trade groups, by inducing and maintain-
ing united action of labor and management under adequate govern-
mental sanction and supervision, by eliminating unfair competitive
practices, by promoting the fullest possible utilization of the present
productive capacitj^ 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 unemploy-
ment, by improving standards of labor, and by otherwise rehabilitat-
ing industry.

(b) The Code as amended complies in all respects with the perti-
nent provisions of Said Title of said Act, including without limita-

706)

707

tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof.

(d) The amendment and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.

(e) The amendment and the Code as amended are not designed to
and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.

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

For these reasons, these amendments have been approved.
Respectfully,

Hugh S. Johnson,

Admins tr at or.
March 24, 1934.

51699—34 7

AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE WOMEN'S BELT INDUSTRY

The following provisions are added to Article VI, Section D of the
Code of Fair Competition for the Women's Belt Industry :

3. 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.

4. No member of the Industry shall accept for credit or exchange,
returned merchandise except for defects in manufacture, delay in
delivery, errors in shipment, or failure to conform to specifications.
No returned merchandise shall be accepted for credit or exchange if
returned after ten (10) days from date of receipt by the customer
except on account of defects in manufacture or failure to conform
to specifications not discoverable by reasonable inspection.

5. No extra discounts shall be allowed wholesale houses on sales-
men's samples.

6. No member of the Industry shall pay commissions to commission
resident buyers or group buying organizations. The provisions of
this section, however, shall not apply to export trade.

7. No member of the Industry catering to the garment trade shall
give sample belts to customers free of charge.

§. 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 any employee or agent or representative of an-
other, in relation to the business of the employer of such employee,
the principal of such agent or represented party, without the knowl-
edge of such employer, principal or party. Commercial bribery
provisions shall not be construed to prohibit free and general distri-
bution of articles commonly used for advertising, except so far as
such articles are actually used for commercial bribery as hereinabove
defined.

9. No member of the Industry shall secretly offer or make any
payment or allowance or rebate, refund, commission, credit, un-
earned discount, or excessive allowance either 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 privilege or service
not extended to all customers of the same class.

10. No member of the Industry shall, directly or indirectly, pay
for any of the advertising expenses of customers.

11. (a) No member of the Industry shall sell merchandise at a
cash discount in excess of the following :

(1) For the Garment Industry and/or Limited Price Variety
Stores 2/10 E.O.M.

(2) For the Wholesale Trade 3/10 E.O.M. or 2/10 60 extra.

(3) For the Retail Trade 8/10 E.O.M.

(b) Any member of the Industry who sells his merchandise to two
or more trades as hereinabove defined shall comply with the rules
applicable in this Code to each particular trade.

(70S)

709

12. No member of the Industry shall issue invoices covering sales
in which the price, terms and discounts, allowance or other facts
relating to the transaction in any manner are falsely stated.

13. No member of the Industry shall issue or publish price lists,
nor sell or offer for sale belts at prices or on terms which do not
conform with the price groupings when and as hereinafter provided
for. The Code Authority shall investigate and recommend gradu-
ated wholesale price groupings designed to stabilize the industry
which when approved by the Administrator after such notice and
Public Hearing as he shall prescribe shall become a part of this
Code.

14. No member of the Industry shall sell any articles, subject to
the provisions of this Code, at a price below his individual cost when
and as determined by and in accordance with the uniform cost ac-
counting system when established by the Code Authority and ap-
proved by the Administrator. However, any member ma}^ meet the
price competition of any competitor whose cost under the Code pro-
vision is lower, and may sell dropped lines or distress merchandise
below such cost, provided the facts regarding such sale shall be
immediately reported to the Code Authority.

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. The application of this provision shall be subject to the
approval of the Administrator.

Approved Code No. 41 — Amendment No. 1.
Registry No. 902-1-01.

Approved Code No. 278 — Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION

FOR THE

TRUCKING INDUSTRY

As Approved on March 26, 1934

ORDER

Approving Extension of Certain Time Provisions and Clarifica-
tion of the Code of Fair Competition for the Trucking Industry

WHEREAS, the Code of Fair Competition for the Trucking In-
dustry provides that said Code shall become effective fifteen (15)
days after approval by the President, and

WHEREAS, said Code was approved by the President on the 10th
day of February, 1934, and

WHEREAS, under the provisions of said Code in Article VI
thereof it is required that every member of the Industry shall within
thirty (30) days after the effective date of said Code, register his
name, number and type of vehicle operated and such other informa-
tion as may be prescribed by the National Code Authority with the
approval of the Administrator, and

WHEREAS, Article II defines the Industry and the members
thereof, and

WHEREAS, Article III, Section 3 of said Code provides that
an election of State code authorities by the members of the Industry
who have registered as required under Article VI of this Code shall
be held within sixty (60) da}<s after the effective date of the Code,
and

WHEREAS, the said Code in its various provisions requires mem-
bers of the Industry to comply therewith within specified periods,
and

WHEREAS, the National Code Authority for the Trucking In-
dustry has requested an extension of time with reference to the
Ararious provisions of the Code above referred to and a clarification
with respect to Article II and Article VI thereof, and

WHEREAS, it appears to me that because of the complexity
and size of the Industry the request of the Code Authority as
hereinbefore set forth should be granted

NOW;, THEREFORE, I, Hugh S. Johnson, Administrator for
Industrial Recovery, pursuant to authority vested in me by Execu-
tive Orders of the President and the Code of Fair Competition for

(711)

712

the Trucking Industry and otherwise, in order to afford sufficient
time for compliance with the Code of Fair Competition for the
Trucking Industry and in order to clarify and amend the provisions
thereof as recommended by the National Code Authority for said
Industry, and in order to afford sufficient time for setting up the
necessary means of registration and administration of the Code for
this Industry, do hereby order that all periods specified in said
Code within which compliance shall be required and all periods
within which elections shall be held and the period within which
members of the Industry shall register and report are hereby ex-
tended so that the commencement of the time with reference thereto
shall be computed from the date of March 30, 1934, rather than
the effective date of the Code and the following language be added
to Article II, Section I-B-(l) "such vehicles when also subject
to any other Code shall be registered under this Code, by the person
or other form of enterprise controlling the operation thereof, who
shall also furnish reports and pay equitable assessments under the
Code based on the cost incident to registration and reports, all as
may be approved by the Administrator."

This order and the above amendment and the approval thereof
shall take effect on April 5, 1934, unless good cause to the contrary is
shown to the Administrator in Room 4217, Commerce Building,
before that time and the Administrator issues a subsequent order to
that effect.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
Sol A. Rosenblatt,

Division Ad in inist rotor.

Washington. D.C..

March 26, 1931

REPORT TO THE PRESIDENT

The President,

The White House.

Sir : This is a report on the recommendation made to the Admin-
istrator by the National Code Authority of the Code of Fair Com-
petition for the Trucking Industry for an administrative order
granting extension of certain time provisions and clarification ^ of
certain other provisions of the Trucking Code. No formal hearing
was held on this order, but effected persons are given the right to
file protest within ten days of the date of the order.

The order recommended by the National Code Authority provides :
that

1. " all periods specified in the said code within which compliance
shall be required and all periods within which elections shall be
held and the period within which members of the industry shall
register and report, are hereby extended so that the commencement
of the time with reference thereto shall be computed from the date
of March 30, 1934, rather than the effective date of the Code " and

2. That in clarification of Article II, Section I-B-(l) it shall be
specifically stated that all not for hire vehicles being operated subject
to the terms of other codes of fair competition approved pursuant
to Title I of the National Industrial Recovery Act shall be registered
according to the provisions of the Trucking Code; that the char-
acter and the volume of their operations, etc., shall be reported
according to the provisions of the Trucking Code; and that the
vehicle shall be subject to an equitable assessment for the cost of
registration and reporting with the approval of the Administrator.

The Deputy Administrator in his final report to me has found
that

1. Due to the extensive character of the Trucking Industry and
the complex administrative machinery necessary to effectuate the
provisions of the Trucking Code, considerable difficulty has been
encountered in putting the necessary administrative machinery into
operation and that it is essential to extend all periods specified in the
Trucking Code within which compliance shall be required.

2. That in the negotiations leading up to the final approval of the
Trucking Code, it was intended that the language of Article II,
Section I-B-(l) would require all vehicles (except those owned
and operated by farmers) transporting property over the public
highways to register and report under the Trucking Code.

I find that :

1. The amendment to said Code and the said Code as amended
are well designed to promote the policies and purposes of Title I
of the National Industrial Recovery Act including the removal of
obstructions to the free flow of interstate and foreign commerce
which tend to diminish the amount thereof, and will provide for the

(713)

714

general welfare by promoting the organization of industry for the
purpose of cooperative action among trade groups, by inducing and
maintaining united action of labor and management under adequate
governmental sanction and supervision, by eliminating unfair com-
petitive practices, by promoting the fullest possible utilization of
the present productive capacity of industries, by avoiding undue
restriction of production, 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.

2. The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and
Subsection (b) of Section 10 thereof.

3. Article II, Section A-l (j) of the approved Code of Fair Com-
petition for the Trucking Industry empowers the National Code
Authority to present the aforesaid amendment on behalf of the
Industry as a whole.

4. The amendment and the Code as amended are not designed to
and will not permit monopolies or monopolistic practices.

5. The amendment and the Code as amended are not designed to
and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.

6. Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to the approval of said
amendment.

For these reasons, this order has been approved.
Respectfully,

Hugh S. Johnson,

A dministrator.
March 26, 1934.

Approved Code No. 278 — Amendment No. 1.
Registry No. 1411-61.

Approved Code No. 3 — Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION

FOR THE

WOOL TEXTILE INDUSTRY

As Approved on March 26, 1934

ORDER

Modification of Code of Fair Competition for the Wool Textile

Industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a modification
of the Code of Fair Competition for the Wool Textile Industry, and
the annexed report on said modification, containing findings with
respect thereto, having been made and directed to the President :

Hugh S. Johnson.
Administrator for Industrial Recovery.

Approval recommended :
A. D. Whiteside,

D i vis ion A dministrator.

Washington, D.C.,

March 26, 1931

(715)

REPORT TO THE PRESIDENT

The President,

The White House.

Sir: The attached modification of Section 3, Article XV of the
Code of Fair Competition for the Wool Textile Industry has been
made in order to clarify the intent of this provision as now worded.

The industry, when submitting the original clause, wished to pro-
vide that price information would be available for its members, but
did not desire to furnish samples which might be on file. The sec-
tion previously approved, was so worded that both price and sample
information could be demanded. The latter is a confidential matter
between the individual producer and the Code Authority, and should
not be made available to competitors.

FINDINGS

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

I find that :

(a) The modification of said Code and the Code as modified is
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general
welfare by promoting the organization of industry for the purpose
of cooperative action among trade groups, by inducing and main-
taining united action of labor and management under adequate gov-
ernmental sanction and supervision, by eliminating unfair competi-
tive practices, by promoting the fullest possible utilization of the
present productive capacity of industries, by avoiding undue restric-
tion of production (except as may be temporarily required), by in-
creasing the consumption of industrial and agricultural products
through increasing purchasing power, by reducing and relieving un-
employment, by improving standards of labor, and by otherwise
rehabilitating industry.

(b) The Code as modified complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) Section 7 and Sub-
section (b) of Section 10 thereof.

(c) The National Association of Wool Manufacturers was and is
an industrial association truly representative of the aforesaid In-
dustry and that said association imposed and imposes no inequitable
restrictions on admission to membership therein and has applied for
or consents to this modification.

(d) The modification and the Code as modified are not designed
to and will not permit monopolies or monopolistic practices.

(716)

717

(e) The modification and the Code as modified are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.

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

For these reasons, this modification has been approved.
Respectfully,

Hugh S. Johnson,

Administrator.
March 26, 1934.

AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE WOOL TEXTILE INDUSTRY

Modification of Section 3, Article XV

" Where the Rules of Practice or Merchandising f ot any division
require or permit the filing of prices and/or samples, such price
files and/or sample files shall not be available for inspection by
members of the division but members of the division will be entitled
to ask for information on prices, which information shall be fur-
nished by those in charge of the files.*'

Approved Code No. 3 — Amendment No. 2.
Registry No. 286-04.

(718)

LABOR PROVISIONS

FOR THE

DISTILLED SPIRITS INDUSTRY

As Approved March 21, 1934

ORDER

Approving Labor Provisions for the Distilled Spirits 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
Labor Provisions for the Distilled Spirits 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 Labor Provi-
sions be and it is hereby approved, provided, however, that this
approval shall not become effective and it is hereby stayed for a period
of ten (10) days in order to afford consideration of the objections of
any interested parties, and at the expiration of which period this
approval shall become effective unless I shall by my further Order
otherwise determine or extend such stay.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended:
Armin W. Riley,

Division Administrator.

Washington, D.C.,

March 21, 1934.

(719)

REPORT TO THE PRESIDENT

The President,

The White House.
Sir: This is a report on the Code of Labor Provisions for the
Distilled Spirits Industry of the United States. On November 24,
1933, the Agricultural Adjustment Administration held a Public
Hearing on the proposed Fair Trade Practice Provisions. The pro-
posed Code of Labor Provisions was heard at the same time. The
Fair Trade Practice Provisions were signed by the President on
November 26, 1933.

PROVISIONS OF THE CODE

No employee shall be permitted to work in excess of forty (40)
hours in any one week or eight (8) hours in any one day, or six (6) days
in any seven (7) day period, with an exemption in those departments
or divisions upon which the seasonal demand places a temporary
burden. In such cases forty-eight (48) hours per week and ten (10)
hours per day are permitted over a six week period in any calendar
year, provided overtime is paid for at the rate of at least time and
one-third, in excess of forty (40) hours.

Exemptions are made for executive, supervisory, and technical
employees receiving thirty-five dollars ($35.00) or more per week.
For junior technical employees receiving twenty-five dollars ($25.00)
or more per week, who do not constitute more than two (2) per cent
of the total number of employees and are limited to one year in this
classification.

Employees engaged in the operation of stills and in the mashing
and fermenting processes may work not to exceed two (2) hours per
week in excess of the maximum weekly hours provided in section 1 of
this Article; Provided, however, they regularly receive at least twenty-
seven dollars and fifty cents ($27.50) per week.

The maximum hours for watchmen are fifty-six (56) per week.

Office employees are placed on a basis of sixteen dollars ($16.00)
per week, with a differential of two dollars ($2.00) for office boys
and messengers.

No employee, other than clerical or office employees or watchmen,
shall be paid at a rate of less than forty cents (40 ff) per hour, and
in no case shall full time weekly wages be reduced as a result of the
adoption of this Code.

No geographic wage differential is written into this Code.

THE INDUSTRY

The Distilled Spirits Industry operates under permits issued by
the Federal Government. It is estimated that during the calendar
year 1934 approximately 150,000,000 gallons of spirits will be man-

(720)

721

ufactured for beverage purposes. The peak production in the United
States before the prohibition period was roughly 202,000,000 gallons
annually.

Treasury Department experts estimate that, with the present
excise tax, about 105,000,000 gallons of distilled spirits will be con-
sumed during the current 12-month period directly following repeal.

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 com-
merce which tend to diminish the amount thereof and will provide for
the general welfare by promoting the organization of industry for the
purposes 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
employees, and is not classified by me as a major industry; and that

"(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
anindustrial group truly representative of the aforesaid Industry; and
that said group imposes no inequitable restrictions on admission to
membership therein.

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

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

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

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

Hugh S. Johnson,

Administrator.

March 21, 1934

51699—34 8

LABOR PROVISIONS FOR THE DISTILLED SPIRITS

INDUSTRY

Article I

Section 1. To effectuate the policies of Title I of the National
Industrial Recovery Act, this Code of Labor Provisions is established
as a Code of Fair Competition for the Distilled Spirits Industry, and
upon approval its provisions shall be binding upon every member
thereof.

Section 2. This Code shall not affect the Code of Fair Competi-
tion for the Distilled Spirits Industry approved November 26, 1933.

Article II — Definitions

Section 1. — As used in this Code —

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

(b) The term " Administrator" means the Administrator for
Industrial Recovery or his duly authorized agent.

(d) The terms " distilled spirits industry" and " industry" mean
(1) the production of distilled spirits, or (2) the brewing or making of
mash, wort, or wash fit for the production of distilled spirits, or (3)
the separation of alcoholic spirits by a process of evaporation, or
otherwise, from any fermented or other substance, or (4) the bottling,
warehousing, or other handling or distribution of distilled spirits, or
the sale or other disposition thereof, by a member of the industry or
an affiliate or subsidiary thereof; but such terms to not include
blending or rectification of distilled spirits.

(e) The term " distilled spirits" means ethyl alcohol, hydrated
oxide of ethyl, spirits of wine, whiskey, rum, brandy, gin, and other
distilled spirits for beverage use, including all dilutions and mixtures
thereof.

(f) The term " member of the industry" includes, but without
limitation any individual, partnership, association, corporation or
other form of enterprise engaged in the industry, either as an employer
or on his or its own behalf.

(g) The term " employee" means any person engaged in the indus-
try in any capacity receiving compensation for his services, irrespec-
tive of the nature or method of payment of such compensation.

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

(i) The term "Code Authority" means the industry authority
pursuant to Article VI of this Code of Labor Provisions.

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

(722)

723

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

(1) The term " watchmen" as used herein shall mean employees
who spend ninety percent (90%) of their time in watching and guard-
ing the premises of the establishment.

(m) The term " outside salesmen" as used herein shall mean only
employees whose principal function is selling and who do not deliver
merchandise.

(n) The term "labor provisions" means provisions relating to the
determination and administration of hours of labor, rates of pay, and
other conditions of employment within this industry.

(o) The term "State" includes Territory and the District of
Columbia.

Article III — Hours

Section 1. No employee shall be permitted to work in excess of
forty (40) hours in any one week or eight (8) hours in any one day or
six (6) days in any seven (7) day period, with the following exceptions:

(a) Executive, supervisory, technical and administrative employees,
provided that they receive regularly thirty-five dollars ($35.00) per
week or more, and outside salesmen.

(b) Junior technical men who are paid not less than twenty-five
dollars ($25.00) per week, provided that employees so classified shall
not constitute more than two percent (2%) of the total number of
employees and provided further that each plant shall be entitled to at
least one employee so classified. In this classification such employees
shall be limited to one year.

(c) Employees engaged in the operation of stills and in the mashing
and fermenting processes may work not to exceed two (2) hours per
week in excess of the maximum weekly hours provided in section 1 of
this Article; Provided, however, they regularly receive at least twenty-
seven dollars and fifty cents ($27.50) per week.

(d) Watchmen, provided however, that they shall not work more
than fifty-six (56) hours per week.

(e) Chauffeurs and deli very men, provided however, that they shall
not work more than forty-eight (48) hours per week, nor more than
six (6) days in any seven day period.

Section 2. The maximum hours established shall not apply to
those departments or divisions of the distilled spirits industry to
which peak or seasonal demand places an unusual or temporary
burden on production in such departments and divisions except that
in such cases, employees may work not to exceed forty-eight (48)
hours per week and ten (10) hours per day in any six weeks' period
in any calendar year, but in any such case at least time and one-third
shall be paid for all hours worked in excess of forty (40) 'hours per
week and eight (8) hours per day.

Section 3. The maximum hours fixed in the foregoing sections
shall not apply to employees on emergency repair work, provided
that any such employees working in excess of forty-two (42) hours
per week or eight (8) hours per day shall be paid at the rate of at
least time and one-third for such overtime.

724

Section 4. All hours worked in excess of the stipulated maxima
under the provisions of Sections 2 and 3 above shall be reported
monthly to the Labor Code Authority.

Section 5. No employer shall knowingly permit any employees
to work for a total number of hours in excess of the number of hours
prescribed for each week and day, whether employed by one or more
employers.

Article IV — Wages

Section 1. No clerical, accounting or other office employee shall be
paid at a rate of less than sixteen dollars ($16.00) per week, except that
office boys and/or office girls and messengers may be employed at not
less than fourteen dollars ($14.00) per week, provided however, that
where more than one employee is compensated at the minimum rate
not more than ten percent (10%) of the total number of office em-
ployees shall be so classified.

Section 2. No watchman shall be paid at a rate of less than sixteen
dollars ($16.00) per week.

Section 3. No employee other than those covered in paragraphs 1
and 2 above shall be paid at a rate of less than forty cents (40jzf)
per hour.

Section 4. It is agreed that this Code guarantees a minimum rate of
pay regardless of whether the employee is compensated on the basis
of time rate or piece work performance.

Section 5. Whenever the adoption of the minimum rates of this
Code results in lessening the differential between unskilled labor and
skilled occupations, wages above the minimum shall be equitably
adjusted so as to maintain fair differentials, and, provided however,
that a report by the Code Authority be made within sixty (60) days
to the Administrator, setting forth a schedule of rate adjustment.
In no case shall full time weekly wages be reduced as a result of the
adoption of this Code.

Article V — General Labor Provisions

Section 1. In compliance with Section 7 (a) of the Act it is
provided:

(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 2. On and after the effective date of this Code, no person
under eighteen (18) years of age shall knowingly be permitted to work
in the industry.

Section 3. No provision in this Code shall supersede any State or
Federal law which imposes on employers more stringent requirements
as to age of employees, wages, hours of work, or as to safety, health,
sanitary or general working conditions, or insurance, or fire protec-
tion, than are imposed by this Code.

Section 4. Employers shall not reclassify employees or duties of
occupations performed by employees for the purpose of defeating the
provisions of the Act.

Section 5. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
employees.

Section 6. After the effective date of this Code, wages shall be
exempt from any charges and /or deductions except with the written
consent of the employees or pursuant to court order.

Section 7. Each employer shall post in a conspicuous place of
easy and continuous access to employees the articles dealing with
hours, wages, and general labor provisions of this Code. All changes
in the provisions of these aforesaid articles shall be posted within
one week after such changes have been incorporated in the Code.

Section 8. Every employer shall make reasonable provision for
the safety and health of his employees at the place and during the
hours of their employment.

Article VI — Administration

A. Constitution of Code Authority —

Section 1. There shall forthwith be constituted a Code Authority
to consist of fourteen (14) persons selected by the Industry in the
following manner:

(a) Seven (7) persons selected by and representing members of
the Industry who are engaged in the production of distilled spirits,
other than rum, brandy, and brandy spirits for wine fortification,
warehoused at or below 110° proof.

(b) Four (4) persons selected by and representing members of the
Industry who are engaged in the production of distilled spirits, other
than rum, brandy, and brandy spirits for wine fortification, ware-
housed at or above 160° proof.

(d) One (1) person selected by and representing members of the
Industry who are engaged in the production of rum.

No member of the Industry shall be entitled to vote for members
of the Code Authority in more than one of the foregoing groups.

Each distiller coming within two or more of the divisions of the
Industry described in the preceding paragraphs (a), (b), (c), and (d)
shall select in which one of those divisions he elects to vote for mem-
bers of the Code Authority, and shall be limited to the division so
selected, and shall be entitled to one vote for each member of the
Code Authority, allocated to such division.

For the purpose of voting, where two or more distillers are in the
relationship of parent and subsidiary, are affiliated, or are substan-
tially under the same control or management, then all such distillers
shall vote as a unit and shall be entitled to one vote for each member
of the Code Authority representing the division of the Industry in

726

which it, as a unit, falls, or if falling in more than one division, has
selected to vote as above. Where a distiller is controlled by two or
more other distillers, such a distiller shall not be entitled to vote.

On all other matters than the election of the Code Authority of
members thereof, each member shall be entitled to one vote, provided
that, for the purpose of voting, where two or more distillers are in
the relationship of parent and subsidiary, are affiliated, or under sub-
stantially the same control or management, then all such distillers
shall vote as a unit and shall be entitled to one vote. Where a dis-
tiller is owned or controlled by two or more distillers, such distiller
shall not be entitled to vote.

At any election of the Code Authority, a vote cast by mail or by
proxy shall have the same force and effect as a vote cast in meeting.

Section 2. In addition to membership as above provided, there
may be not more than three members to be appointed by the Admin-
istrator, to serve without vote or expense to the Industry.

Section 3. The members of the Code Authority shall be subject
to the approval of the Administrator before having any powers or
duties pursuant to this Code of Labor Provisions.

Section 4. 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 membership, and (2)
submit to the Administrator two 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 purpose of the Act.

Section 5. Each member of the Code Authority shall be entitled
to designate an alternate to act for him in his place and stead, who
shall be an executive officer of the same member of the Industry as
is the member of the Code Authority, subject to the approval of the
Administrator.

Section 6. In case of a vacancy in the Cede Authority for any
reason the vacancy shall be filled at a special meeting, representative
of the division of the Industry as to which the vacancy occurs. All
persons elected to fill vacancies shall be subject to the approval of
the Administrator before having any duties or powers pursuant to
this Code of Labor Provisions.

Section 7. In order that the Code Authority shall at all times be
truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may prescribe such
hearings as he may deem proper; and thereafter if he shall find that
the Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an appro-
priate modification in the method of selection of the Code Authority.

Section 8. 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.

727

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.

B. Powers and Duties. —

Section 1. To administer the provisions of this Code of Labor
Provisions, subject to the disapproval of the Administrator, and to
foster and promote the observance thereof by the members of the
Industry.

Section 2. To prescribe rules, regulations, by-laws for the per-
formance of its functions in the administration of this Code of Labor
Provisions subject to the approval of the Administrator.

Section 3. To recommend to the Administrator amendments to
this Code of Labor Provisions.

Section 4. To cooperate with and assist the Administrator, as the
Administrator may from time to time request, in carrying out its
functions under this Code of Labor Provisions.

Section 5. To obtain from members of the Industry such informa-
tion and reports as are required for the administration of this Code of
Labor Provisions 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 govern-
ment agency. 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 directed by the Administrator.

Section 6. To receive and investigate, and to report to the Admin-
istrator its findings of fact with regard to charges of apparent violation
of this Code, subject to such regulations as may from time to time be
approved by the Administrator.

Section 7. To secure from members of the Industry an equitable
and proportionate payment of the reasonable expenses of maintaining
the Code Authority and its activities.

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 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 — Modification

728

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
Administrator and such notice and hearings as he shall specify, and
to become effective on approval of the President.

Article VIII — 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 IX — Effective Date

This Code shall become effective on the first Monday after the
effective date of its approval.

Registry No. 102-19.

LABOR PROVISIONS

FOR THE

BREWING INDUSTRY

As Approved on March 22, 1934

ORDER

Approving Labor Provisions for the Brewing 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 oi
Labor Provisions for the Brewing 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 lor 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 Labor Provi-
sions be and it is hereby approved, provided, however, that the provi-
sions thereof shall not become effective and they are hereby stayed for
a period of ten (10) days in order to afford consideration of the objec-
tions of any interested parties, and at the expiration of which period the
said Code shall become effective unless I shall by my further Order
otherwise determine or extend such stay.

Hugh S. Johnson,
Administrator j or Industrial Recovery.

Approval recommended:
Armin W. Riley,

Division Administrator.

Washington, D.C.,

March 22, 1934.

(729)

REPORT TO THE PRESIDENT

The President,

The White House.
Sir: This is a report on the Code of Labor Provisions for ifte Brew-
ing Industry of the United States. On November 27, 1933, the Agri-
cultural Adjustment Administration held a Public Hearing on the
Fair Trade Practice Provisions. The proposed Code of Labor Pro-
visions was heard at the same time. The Fair Trade Practice Provi-
sions were signed by the President en December 4, 1933.

PROVISIONS OF THE CODE

The Deputy Administrator advises that the Brewing Industry is
highly unionized, being eighty-five (85%) percent to ninety (90%)
percent organized. At the Public Hearing, the representatives of the
unions gave unqualified endorsement to the Code of Labor Provisions
proposed.

All labor, clerical and otherwise, is placed on a basis of 40 hours per
week and 8 hours per day, with an exemption in those departments or
divisions upon which the seasonal demand places an unusual or
temporary burden. In such cases 48 hours per week and 10 hours
per day is permitted over a fourteen-week period in any calendar year,
provided such overtime is paid for at the rate of time and one-third
for office employees and time and one-half for all other employees.

Exemptions are made for executive, supervisory, and technical
employees receiving $35.00 or more per week, and for junior technical
employees receiving $25.00 or more per week and who do not consti-
tute more than two (2) percent of the total number of employees.

Office employees are placed on a basis of $16.00 per week, with a
differential of $2.00 for office boys and messengers.

No other employee shall be paid at a rate less than $18.00 per week,
provided that in no case shall the rate of pay be below an amount
which for forty (40) hours of labor will result in the same pay as is
now paid to such employee for the number of hours per week which he
regularly works, unless such pay is hereafter otherwise fixed by
collective bargaining agreement.

No geographic wage differential is written into this code.

Administration for the Code of Labor Provisions is provided for
through Regional Labor Boards, on which Boards Industry and
Labor have equal representation, each group having two elected
members. These four members elect a fifth member, or, in the event
they cannot agree, the fifth member is to be appointed by the Admin-
istrator. An additional member may be appointed by the Adminis-
trator, to serve without vote and without expense to the Industry.
The constitution of the Code Authority shall be along similar lines.

(730)

731

THE INDUSTRY

The Brewing Industry is confronted by a somewhat unusual set
of conditions, due to the recent legalization of beer. During the
past 14 years the malt beverage output was only about 10 percent
of the present normal consumption. The present normal production
is about 34,500,000 barrels a year, or a little less than half the pro-
duction during the Pre-War peak. The additional employees
required as a result of the proposed reduction in hours will be about
twenty-one and one-half (21 ){%) percent, bringing the total number
of employees to about 38,350.

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

I find that:

" (a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of industry
for the purposes 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 em-
ployees, and is not classified by me as a major industry; and that

"(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 an in-
dustrial group truly representative of the aforesaid Industry; and that
said group imposes no inequitable restrictions on admission to mem-
bership 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.

LABOR PROVISIONS FOR THE BREWING INDUSTRY

Article I

Section 1. To effectuate the policies of Title I of the National
Industrial Recovery Act, this Code of Labor Provisions is established
as a Code of Fair Competition for the Brewing Industry, and upon
approval its provisions shall be standards of fair competition for this
industry and shall be binding upon every member thereof.

Section 2. This Code shall not affect the Code of Fair Competition
for the Brewing Industry approved December 4, 1933.

Article II — Definitions

Section 1. — As used in this Code —

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

(b) The term "Administrator" means the Administrator for
Industrial Recovery or his duly authorized agent.

(d) The terms "Brewing Industry" and "Industry" mean (1) the-
manufacture of beer, ale, porter, stout, or other fermented malt
liquors containing more than one-half of one percentum of alcohol
by volume, (2) the manufacture of cereal beverages, or (3) the bottling,
warehousing, or other handling or distribution of any of the fore-
going products, or the sale or distribution thereof, by a brewer or an
affiliate or subsidiary thereof.

(e) The term "products of the industry" or "products" means
beer, ale, porter, stout, and other fermented malt liquors or cereal
beverages.

(f) The term "employee" means any person engaged in the indus-
try in any capacity receiving compensation for his services, irrespec-
tive of the nature or method of payment of such compensation.

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

(h) The term "member of the industry " means any person engaged
in the industry as an employer or on his own behalf.

(i) The term "Code Authority" means the industry authority
established pursuant to Article VI of this Code of Labor Provisions.

(j) The term "Regional Boards" means the boards established
under Article VII of this Code.

(k) The term "labor provisions" means provisions relating to the
determination and administration of hours of labor, rates of pay and
other conditions of employment within this industry.

(1) The term "watchmen" as used herein shall mean employees
who spend ninety per cent (90%) of their time in watching and
guarding the premises of the establishment.

(732)

733

(m) The term "Outside salesmen" as used herein shall mean
only employees whose principal function is selling and who do not
deliver merchandise.

(n) The term "State" includes Territory and the District of
Columbia.

Article III — Hours

(a) Executive, supervisory, technical and administrative em-
ployees, provided that they receive regularly $35.00 per week or
more, and outside salesmen.

(b) Junior technical men who are paid not less than $25.00 per
week, provided that employees so classified shall not constitute
more than two (2) percent of the total number of employees and
provided further that each plant shall be entitled to at least one
employee so classified.

(c) Watchmen, provided however, that they shall not work more
than fifty-six (56) hours per week and shall receive at least $20.00
per week, provided however, that a watchman employed on an
hourly basis shall receive at least the minimum hourly rates pre-
scribed in this Code and shall not work in excess of seventy (70)
hours in any one week.

(d) Delivery drivers, provided, they are paid at least time and
one-half for all hours worked in excess of forty (40) hours per week
and eight (8) hours per day.

Section 2. In addition, the maximum hours established shall not
apply in those departments or divisions of the brewing industry in
which peak or seasonal demand places an unusual or temporary bur-
den on production in such departments and divisions except that in
such cases employees may work not to exceed forty-eight (48) hours
per week and ten (10) hours per day in any fourteen weeks' period
in any calender year, but in any such case, overtime shall be paid for
all hours worked in excess of forty (40) hours per week and eight (8)
hours per day; such overtime to be paid for at the rate of time and
one-third for office employees and at the rate of time and one-half
for all other employees. Office employees receiving $35.00 per week
or more are not subject to overtime.

Section 3. The maximum hours fixed in the foregoing Sections
shall not apply to employees on emergency repair work, provided
that any such employee working in excess of forty (40) hours per week
or eight (8) hours per day shall be paid at the rate of at least time and
one-half for such overtime.

Section 4. All hours worked in excess of the stipulated maxima
under the provisions of Sections 2 and 3 shall be reported monthly
to the Regional Labor Adjustment Committee.

Section 5. No employer shall knowingly permit any employee to
work for a total number of hours in excess of the number of hours
prescribed for each week and day, whether employed by one or more
employers.

734

Article IV — Wages

Section 1. No clerical, accounting or other office employee shall
be paid at a rate of less than sixteen dollars ($16.00) per week, except
that office boys and messengers may be employed at not less than
fourteen dollars ($14.00), provided, however" that where more than
one employee is compensated at the minimum rate not more than ten
per cent (10%) of the total number of office employees shall be so
classified.

Section 2. No employee other than those covered in Section 1,
above, shall be paid at a rate of less than eighteen dollars ($18.00)
per week, provided that in no case shall the rate of pay be below an
amount which for forty (40) hours of labor will result in the same
pay as is now paid to such employee for the number of hours per week
which he regularly works, unless such pay is hereafter otherwise
fixed by collective bargaining agreement.

Section 3. It is agreed that this Code guarantees a minimum rate
of pay regardless of whether the employee is compensated on the
basis of time rate or piece work performance.

Section 4. Whenever the adoption of the minimum rates of this
Code results in lessening the differential between unskilled labor and
skilled occupations, wages above the minimum shall be equitably
adjusted so as to maintain fair differentials, and, provided however,
that a report by the Code Authority be made within sixty (60) days
to the Administrator, setting forth a schedule of rate adjustment.
In no case shall full time weekly wages be reduced as a result of the
adoption of this Code.

Article V — General Labor Provisions

Section 1 . In compliance with Section 7 (a) of the Act it is provided:

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

(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 2. On and after the effective date of this Code, no person
under sixteen (16) years of age shall be employed in the Industry.
No person under eighteen (18) years of age shall be employed at
operations or occupations which are hazardous in nature or dangerous
to health. The Code Authority shall submit to the Administrator
before April 1, 1934, a list of such operations or occupations.

Section 3. No provision in this Code shall supersede any State
or Federal Law which imposes on employers more stringent require-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general working conditions, or insurance or fire
protection, than are imposed by this Code.

735

Section 4. After the effective date of this Code, wages shall be
exempt from any charges and/or deductions except with the written
consent of the employee or pursuant to court order, and unless re-
quired by law.

Section 5. Employers shall not reclassify employees or duties of
occupation performed by employees for the purpose of defeating the
provisions of the Act.

Section 6. Each employer shall post in a conspicuous place of
easy and continuous access to employees the Articles dealing with
hours, wages, and general labor provisions of this Code. All changes
in the provisions of those aforesaid Articles shall be posted within
one week after such changes have been incorporated in the Code.

Section 7. Each employer shall post the name and address of one
of the employee representatives of the nearest regional Labor Adjust-
ment Committee.

Section 8. Every employer shall make reasonable provision for the
safety and health of his employees at the place and during the hours
of their employment.

Article VI— Administration

A. CONSTITUTION OF CODE AUTHORITY

Section 1. There shall forthwith be constituted a Code Authority
to consist of five persons selected in the following manner:

(a) Two persons shall be selected by and represent the members
of the Industry, according to a plan to be forthwith submitted to the
Administrator for his approval.

(b) Two persons shall be selected by and represent the employees
in the Industry, according to a plan to be forthwith submitted to the
Administrator for his approval.

(c) One person shall be selected by the unanimous vote of the
above four members or shall be appointed by the Administrator in
the event that no unanimous vote can be obtained.

(d) In addition to membership as above provided, there may be
not more than three members to be appointed by the Administrator,
to serve without vote or expense to the Industry.

Section 2. The members of the Code Authority shall be subject to
the approval of the Administrator before having any powers or duties
pursuant to this Code of Labor Provisions.

Section 3. Each member of the Code Authority shall be entitled
to designate an alternate to act for him in his place and stead, such
alternate to be subject to the approval of the Administrator.

Section 4. Vacancies in the membership of the Code Authority
shall be filled by the selection of a person from the same group and
in the same manner as that of the member whose retirement has
caused the vacancy, subject to the approval of the Administrator.

Section 5. 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 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.

736

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.

B. POWERS AND DUTIES

Section 1. To administer the provisions of this Code of Labor
Provisions, subject to the approval of the Administrator, and to
foster and promote the observance thereof by the members of the
Industry.

Section 2. To prescribe rules, regulations and by-laws for the
performance of its functions in the administration of this Code of
Labor Provisions, subject to the approval of the Administrator.

Section 3. To recommend to the Administrator amendments to
this Code of Labor Provisions.

Section 4. To cooperate with and assist the Administrator, as the
Administrator may from time to time request, in carrying out its
functions under this Code of Labor Provisions.

Section 5. To obtain from members of the Industry such informa-
tion and reports as are required for the administration of this Code
of Labor Provisions and to provide for submission by members of
such information and reports as the Administrator may deem neces-
sary for the purposes recited in Section 3 (a) of the Act, which informa-
tion and reports shall be submitted by members to such administra-
tive and/or government agencies as the Administrator may designate ;
provided that nothing in this Code shall relieve any member of the
Industry of any existing obligations to furnish reports to any govern-
ment agency. No individual reports shall be disclosed to any other
member of the Industry or other party except to such governmental
agencies as may be directed by the Administrator.

Section 6. To receive and investigate, and to report to the Ad-
ministrator its findings of fact with respect to charges of apparent
violation of this Code, subject to such regulations as may from time
to time be approved by the Administrator.

Section 7. To receive and investigate reports of the regional
boards (as provided in Article VII) and to report to the Administra-
tor its findings of fact with respect to such reports of the regional
board.

Section 8. To secure from members of the Industry and from
representatives of employees in each regional district, an equal and
proportionate payment of reasonable expenses of maintaining the
Code Authority and its activities; such expenses to be subject to the
approval of the Administrator.

Section 9. 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 relationships between production

737

and distribution 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.

Section 10. If the Administrator shall determine that any action
of a Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may require
that such action be suspended to afford an opportunity for 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.

Article VII

Section 1. For the further administration of this Code of Labor
Provisions there shall forthwith be created a regional board in each
of the regional areas, as follows:

Regional Board
Territory Covered by Board: Number

Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and

Connecticut 1

New York and Puerto Rico 2

New Jersey 3

Delaware, Maryland, District of Columbia, Virginia 4

Pennsylvania 5

North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi,

Kentucky, Tennessee 6

Ohio and West Virginia 7

Indiana 8

Iowa and Illinois 9

Michigan 10

Wisconsin 11

Minnesota, North Dakota, South Dakota 12

Missouri 13

Louisiana, Arkansas, Oklahoma, Texas 14

Colorado, Utah, Wyoming, Kansas, Nebraska, New Mexico 15

Montana, Washington, Idaho, Oregon, Alaska 16

California, Nevada, Arizona, Hawaii 17

Section 2. For each of the regional areas hereinbefore mentioned,
there shall be a regional board of five members, to be selected as
follows:

(a) Two members shall be elected by regional members of the
Industry concerned.

(b) Two members shall be elected by and represent the employees
in each regional district as defined in Section 1 of this Article, accord-
ing to a plan to be forthwith submitted to the Administrator for
his approval.

(c) A fifth member shall be elected by unanimous vote of the above
four members, or shall be appointed by the Administrator in the
event that no unanimous vote can be obtained.

(d) In addition to the above five members, the Administrator may
appoint an additional member to serve without vote and without
expense to the Industry.

Section 3. The powers and duties of each regional board shall be
as follows:

(a) To insure the execution of this Code of Labor Provisions and
provide for compliance with the provisions of the Act.

51699—34 9

738

(b) To obtain from employees and members of the Industry such
information and reports as are required for the administration of this
Code of Labor Provisions.

(c) To recommend to the Code Authority and/or the Administrator
such amendments as wall tend to effectuate the purposes of this Code
of Labor Provisions and the policy of the National Industrial Recovery
Act.

Section 4. Each regional board may from time to time request
the Code Authority and/or the Administrator to issue such adminis-
trative interpretations of this Code of Labor Provisions as may be
necessary to effectuate its purpose. The Code Authority shall submit
such requests for interpretations to the Administrator, and upon his
approval thereof, these administrative interpretations shall become
effective as a part of this Code.

Section 5. The necessary expenses of each regional board for the
administration of tins Code of Labor Provisions shall be authorized
by the Code Authority with the approval of the Administrator, and
shall be borne jointly and on an equal basis by the regional members
of the industry concerned and the employees of such regional mem-
bers of the industry.

Article VIII — Modification

Section 2. Tins 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 President.

Article IX — Monopolies, Etc.

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

Article X — Effective Date

This Code shall become effective on the second Monday after its
approval by the President.
Registry No. 102-09.

SUPPLEMENTS

Approved Code No. 244 — Supplement No. 2

SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

PAINTING, PAPERHANGING AND DECORATING

INDUSTRY

As Approved on March 12, 1934

PRESIDENT ROOSEVELT

EXECUTIVE ORDER

Supplementary Code of Fair Competition for the Painting,
Paperhanging and Decorating Industry

a division of the construction industry

An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, and pursuant to and in full
compliance with the provisions of Section 5 of Article VIII of
Chapter I of the Code of Fair Competition for the Construction
Industry, approved January 31, 1934, for approval of Chapter III
of said* Code, which Chapter III is applicable to the Painting,
Paperhanging and Decorating Division of the Construction In-
dustry, and hearings having been held thereon, and the Administrator
having rendered his report containing an analysis of said Chapter
III and of said Code of Fair Competition as modified by the addi-
tion thereto of said Chapter III, together with his recommendations
and findings with respect thereto, and the Administrator having
found that the said Chapter III and the said Code of Fair Com-
petition, as modified by the addition thereto of said Chapter III,
comply 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:

(739)

740

ter III be and it is hereby approved, and that the previous approval
of said Code of Fair Competition for the Construction Industry
is hereby modified to include an approval of said Code in its entirety
as modified by the addition thereto of said Chapter III.

FKANKLIN D. ROOSEVELT.

Approval recommended :
Hugh S. Johnsox.

Administrator.

The White House,

March 12, 193i.

LETTER OF TRANSMITTAL

The President,

The White House.

Sir : This is a report on the Painting, Paperhanging and Decorat-
ing Chapter of the Code of Fair Competition for the Construction
Industry which was approved by you on January 31, 1934, and which
is described as Chapter I.

This Chapter is a revision after public hearings conducted in
Washington on September 6, 1933 and November 20, 1933, which
hearings were conducted in accordance with the provisions of the
National Industrial Recovery Act. This Chapter amplifies Chapter
I but applies specifically to Painting, Paperhanging and Decorating.

THE INDUSTRY

The Painting, Paperhanging and Decorating contractors are of
major importance in the Construction Industry, in the original con-
struction and also do a great deal of maintenance and rehabilitation.
The types of their work are described by the title.

PROVISIONS FOR HOURS AND WAGES

With very minor exceptions, the hours and wages set forth in
Chapter I of the Construction Code as approved by you on January
31, 1934 are applicable to this Code.

ECONOMIC EFFECT OF THE CODE

The Industry gave direct employment to approximately 458,000
in 1930. It is reasonable to suppose that with the prohibition of
unfair trade practices and the establishment of uniform rates of pay
and hours of work, that better conditions will prevail in this Industry
and that employers, employees and the public will be benefited.

FINDINGS

The Deputy Administrator in his final report to me on said
Painting, Paperhanging and Decorating Chapter of the Code of Fair
Competition for the Construction Industry, as modified by the addi-
tion thereto of said Painting, Paperhanging and Decorating Chap-
ter, having found as herein set forth and on the basis of all the
proceedings in this matter :

In find that :

(a) Said Painting, Paperhanging and Decorating Chapter and
said Code of Fair Competition for the Construction Industry, as
modified by the addition thereto of said Painting, Paperhanging
and Decorating Chapter, is well designed to promote the policies and

(T4l)

742

purposes of Title I of the National Industrial Kecovery Act, in-
cluding removal of obstructions to the free flow of interstate and
foreign commerce which tend to diminish the amount thereof and
will provide for the general welfare by promoting the organiza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
vision, by eliminating unfair competitive practices, by promoting the
fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except
as may be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.

(b) Said Painting, Paperhanging and Decorating Chapter and
the Code of Fair Competition for the Construction Industry, as
modified by the addition thereto of said Painting, Paperhanging
and Decorating Chapter, 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.

(c) Said Painting, Paperhanging and Decorating Chapter and
the Code of Fair Competition for the Construction Industry, as
modified by the addition thereto of said Painting, Paperhanging
and Decorating Chapter, is not designed to and will not permit
monopolies or monopolistic practices.

(d) Said Painting, Paperhanging and Decorating Chapter and
the Code of Fair Competition for the Construction Industry, as
modified by the addition thereto of said Painting, Paperhanging
and Decorating Chapter, 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
Painting, Paperhanging and Decorating Chapter and of said Code,
as modified by the addition thereto of this Painting, Paperhanging
and Decorating Chapter thereof.

For these reasons, therefore, I recommend approval of said Paint-
ing, Paperhanging and Decorating Chapter and said Code, as modi-
fied by the addition thereto of said Painting, Paperhanging and
Decorating Chapter thereof.
Respectfully,

Hugh S. Johnson,

Administrator.
March 10. 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE PAINTING, PAPERHANGING AND DECORATING
INDUSTRY

A DIVISION OF THE CONSTRUCTION INDUSTRY

Chapter III
Article I — Definitions

Section 1. The term "Painting, Paperhanging and Decorating
Division " or " this division ", as used herein, includes the service of
painting, woodfinishing, paperhanging, and decorating and prepar-
atory work incidental thereto, and such branches or subdivisions
thereof as may from time to time be included under the provisions
of this chapter.

(a) The service of painting and/or woodfinishing means the
application of all paint, woodfinishing and painting materials of
every description in and on all parts of new or old buildings and
structures of every kind.

(b) The service of paperhanging and/or decorating means the
application and/or installation of wallpapers, hangings and decora-
tive materials of every kind or description applied directly to the
surface in or on buildings of all kinds.

Section 2. Home-owners and householders, including farmers,
shall not be deemed to be included within the definition contained in
Section 1 in their performance individually or by their permanent
servants or other help of like character on their home premises of
any services described in such definition; nor shall any such person,
or any building owner or tenant, performing such services by his
permanent employees and not for hire on or in buildings or struc-
tures owned or occupied by him, be deemed to be included in such
definition.

The term " permanent employees " as used in this section means
and includes any employee who is given regular and continuous
employment for a period of not less than (6) six months.

Article II — Wages, Hours and Conditions of Employment

Section 1. The following are exempt from the provisions of Sec-
tion 2, of Article III of Chapter I of this Code relating to maximum
hours :

(a) Outside salesmen and outside estimators.

(b) Executive, administrative or supervisory employees whose
fixed salaries are in excess of thirty-five dollars ($35.00) per week.
Supervisory employees are defined as those who perform no manual
work.

(c) Watchmen who may be permitted to work not in excess of
fifty-six (56) hours in any week or in excess of six (6) days in any
week.

(743)

744

Section 2. (a) Wages due shall be payable weekly in lawful cur-
rency or its equivalent in the form of a negotiable check, payable at
par.

(b) Employers and their agents shall accept no rebates, either
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 of their employees.

Section 3. Any employer shall be subject to the applicable maxi-
mum hourly limitations provided in this Code in the performance
by him of manual labor or mechanical occupations customarily
performed by employees.

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. Standards for safety and health shall
be submitted by the Code Authority to the Administrator within
three (3) months after the effective date of this Code.

Section 5. Within thirty (30) days of the approval of this Code,
all employers subject to its conditions shall post in a conspicuous
place in their respective shops and other places they are doing
work complete copies of Chapter I — General Provisions for the
Construction Industry and of this Chapter of this Code.

Article III — Administration

Section 1. A Divisional Code Authority is hereby constituted to
administer this Code within this Division. The Divisional Code
Authority shall consist of ten (10) individuals, or such other number
as may be approved from time to time by the Administrator.

Seven (7) members of the Divisional Code Authority shall be
members or representatives of the International Society of Master
Painters and Decorators, Inc., appointed by the Executive Board of
said Society, to serve for terms of not more than one (1) year.

The three (3) remaining members of the Divisional Code Au-
thority shall be initially selected by the said Executive Board of the
said Society from members of this Division who are not members
of the said Society, each of said three (3) initially selected members
to be approved by the Administrator and to serve for a term of not
more than one (1) year, or until he or his successor shall have been
selected, by a method of selection satisfactory to and approved by the
Administrator, by the members of this Division who are not then
members of the said Society.

Section 2. In addition to the powers and duties conferred upon
it, pursuant to Section 2 of Subdivision B of Article IV of Chapter
I of this Code, the Divisional Code Authority shall be empowered :

(a) To make recommendations to the Administrator for the co-
ordination of provisions of this Chapter, and its administration, with
the provisions and administration of any other code of fair
competition that may be related to this Division or its members.

(b) To cooperate with the Administrator in regulating the use
of any N.R.A. insignia solely by those members of this division who
have assented to. and are complying with, the provisions of this Code
as it applies within this division.

745
Article IV — Fair Trade Practice Regulations

Section 1. The following provisions are adopted as rules of fair
trade practice for members of this division, and any violation of
said rules shall constitute an unfair method of competition and a
violation of this Code :

(a) No member of this division shall sell goods or render services
at a price which is below the reasonable estimate of the sum of the
following items of cost :

1. Materials

2. Labor

3. Job Expense

4. General Overhead

The labor item of cost shall include, in respect of labor services or
operations performed by any individual member of this division, or
any combination or association of such individual members, a charge
computed at not less than the minimum rate of wage established in
or pursuant to this Code as applicable to the performance of such
services or operations by employees.

Job expense shall include all costs which can properly be charged
directly to individual jobs such as transportation and delivery of
materials, men and equipment; compensation and public liability
insurance; code administration expenses chargeable to the job; and
an appropriate allowance for the depreciation of special scaffolding
and equipment (brushes, dropcloths, etc.).

General overhead shall include office rent and expense, all depre-
ciation on equipment not included in job expense, determined on the
federal income tax basis, supervision, unassignable transportation
expense, and other actual expenses not directly chargeable to job. It
shall not include profit, accounting losses, selling and administration
expense, any return on invested capital, or interest on borrowed
money.

The Divisional Code Authority, with the approval of the Admin-
istrator, shall determine the lowest reasonable percentage of over-
head costs during the period from 1927 to 1932. which percentage
shall be used in the formula specified above. Until such time as this
percentage of overhead be determined, it shall be assumed at ten
percent (10%) of labor, material and job expense.

.(b) No member of this division shall produce or deliver products
or complete contracts, which do not conform to specifications, sam-
ples submitted, or representations made prior to securing the orders,
without the consent of the purchasers.

(c) No member of this division shall make any secret payment
or allowance of rebates, refunds, commissions or unearned discounts,
whether in the form of money or otherwise or secretly extend to
certain purchasers special services or privileges, not extended to all
purchasers under like terms and conditions.

(d) No member of this division 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

746

bribery provisions shall not be construed to prohibit free and general
distribution of articles commonly used for advertising except as far
as such articles are actually used for commercial bribery as herein-
above defined.

(e) Where accurate estimates, sketches, designs or plans are desired
for information only, a reasonable fee or fees shall be charged to the
parties receiving them.

(f ) No member of the division shall sublet (whether by the practice
known as " lumping " of labor or otherwise) to any journeyman or
other employee, the labor services required by any contract for work
within this division.

Article V — Keferexce to Provisions of Chapter I

The provisions of Sections 7 (a) and 10 (b) of the Act, which are
set forth in Sections 1 and 6 respectively of Article VIII of Chapter
I of this Code, are specifically incorporated herein by reference with
the same force and effect as if set forth herein in full ; all other pro-
visions of Chapter I of this Code, except as herein provided, apply
within this division with the same force and effect as if set forth
herein in full.

Article VI — Review or Acts of the Code Authority

If the Administrator shall determine that any action of the Divi-
sional Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by the Divi-
sional 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.

Article VII — Modifications

Subject to the provisions of Section 2, (c) of Article IV, B, of
Chapter I of this Code, the provisions of this chapter except as to
provisions required b}^ 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 his approval.

Article VIII — Effective Date

This Code (Chapter I and this Chapter) shall become effective
within this Division on the tenth (10th) day after the approval of
this Chapter by the President.

Approved Code No. 244 — Supplement No. 2.
ltegistry No. 61&-05.

Approved Code No. 84 — Supplement No. 7
SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

TOOL AND IMPLEMENT MANUFACTURING
INDUSTRY

As Approved on March 15, 1934

ORDER

Approving Supplementary Code of Fair Competition for the Tool
and Implement Manufacturing Industry

a division of the fabricated metal products manufacturing and
metal finishing and metal coating industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, and in accordance with the
provisions of Section I of Article VI of the Basic Code for the Fab-
ricated Metal Products Manufacturing and Metal Finishing and
Metal Coating Industry, approved November 2, 1933, for approval
of a Supplementary Code of Fair Competition for the Tool and
Implement Manufacturing Industry; and hearing having been duly
held thereon; and the annexed report on said Supplementary Code,
containing findings with respect thereto, having been made and
directed to the President :

(747)

748

the effective date of this Code or after the completion of a study
of open price associations now being conducted by the National
Recovery Administration.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
W. A. Harriman,

D ivis ion A dmin is trator.

March 15, 1034.

REPORT TO THE PRESIDENT

The President,

The White House.
Sir : This is a report on the Supplementary Code of Fair Compe-
tition for the Tool and Implement Manufacturing Industry, a divi-
sion of the Fabricated Metal Products Manufacturing and Metal
Finishing and Metal Coating Industry, the hearing having been
conducted thereon in Washington, D.C., December 18, 1933, in
accordance with the provisions of Title I of the National Industrial
Recovery Act.

GENERAL STATEMENT

The Tool and Implement Manufacturing Industry, being truly
representative of this division of the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry,
has elected to avail itself of the option of submitting a Supplemen-
tary Code of Fair Practice, as provided for in Section 1 of Article.
VI of the Basic Code, for the Fabricated Metal Products Manufac-
turing and Metal Finishing and Metal Coating Industry approved
by you on the second day of November, 1933.

RESUME OF THE CODE

Article I states the purpose of the Supplementary Code.

Article II accurately defines specific terms employed in the Sup-
plementary Code.

Article III. This Industry is a division of the Fabricated Metal
Products Manufacturing and Metal Finishing and Metal Coating
Industry and the labor provisions of its Basic Code, as approved
November 2, 1933, are the labor provisions of this Supplementary
Code.

Article IV establishes a Supplementary Code Authority consisting
of seven (7) members elected by the members of the Industry at a
meeting called by the Supplementary Code Authority, and gives the
Administrator the authority to appoint one additional member with-
out vote and provides machinery for obtaining statistics and the
administration of the Supplementary Code.

Article V sets forth the unfair trade practices of this Supplemen-
tary Code which has been especially designed to offset unfair com-
petition in this division of the Industry.

Article VI provides against monopolies and monopolistic practices.

Article VII contains the mandatory provisions contained in Section
10 (b) of the Act and also provides for the submission of proposed
amendments to the Supplementary Code.

Article VIII recognizes that price increases except such as may be
required to meet individual costs should be delayed.

(749)

750

Article IX sets forth that assent to this Supplementary Code does
not involve the waiving of any constitutional rights.

Article X states the effective date and duration of this Supplemen-
tary Code.

FINDINGS

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

I find that :

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

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

(c) The Supplementary Code as approved complies in all respects
with the pertinent provisions of said Title of said Act, including with-
out limitation Subsection (a) of Section 3, Subsection (a) of Section
7, and Subsection (b) of Section 10 thereof; and that the applicant
association is an industrial association truly representative of the
aforesaid Industry; and that said association imposes no inequitable
restrictions on admission to membership therein.

(d) The Supplementary Code is not designed to and will not per-
mit monopolies or monopolistic practices.

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

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

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

Respectfully,

Hugh S. Johnson.

Administrator.
March 15. 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE TOOL AND IMPLEMENT MANUFACTURING
INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY

Article I — Purposes

To effectuate the policies of title I of the National Industrial
Recovery Act, this Code is established as a Supplementary Code of
Fair Competition for the Tool and Implement Manufacturing In-
dustry. Pursuant to Article VI of the Basic Code of Fair Compe-
tition for the Fabricated Metal Products Manufacturing and Metal
Finishing and Metal Coating Industry approved by the President on
the 2nd day of November, 1933, the provisions of this Supplementary
Code shall be the standards of Fair Competitions of such industry
and shall be binding upon every member of the Industry.

Article II — Definitions

The term " Tool and Implement Manufacturing Industry " here-
inafter referred to as the " Industry " means and includes the man-
ufacture for use or for sale, in whole or in substantial part, of axes,
hatchets, hammers, scythes, snathes, grass hooks, steel goods (mean-
ing forks, hoes, rakes and like tools), shovels, and post hole diggers;
provided, however, that organizations or groups of manufacturers
representing kinds or types of hand tools and/or hand implements
not specifically named herein, may become parties to or be exempt
from this Supplementary Code upon approval by the Administrator.

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

The term " employer " as used herein includes anyone by whom
any such emplo3^ee is compensated or employed.

The term " member of the Industry " as used herein includes, but
without limitation, any individual, partnership, association, cor-
poration or other form of enterprise engaged in the industry either
as an employer or on his or its own behalf.

The term " Industry Division " refers respectively to the following
separate branches of the Industry : "Axe Division ", " Hatchet Divi-
sion ", " Hammers Division ", " Scythe and Snathe Division ", " Steel
Goods Division", (meaning forks, hoes, rakes and like tools), and
" Shovel and Post Hole Digger Division ", and to any separate divi-
sion which may be later organized under this Supplementary Code..

(751)
51690—34 10

752

The term " Member of a Division " means and includes any indi-
vidual, partnership, association, corporation or other form of enter-
prise engaged in the industry divisions as above defined.

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

The term " Basic Code " as used herein, is defined to mean the
Basic Code of Fair Competition for the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry, as
approved by the President on the 2nd clay of November, 1933.

The term"" Supplementary Code Authority " as used herein means
the agency which is to administer this Supplementary Code as here-
inafter provided.

The term "Association " as used herein, is defined to mean the
General Tool and Implement Association or its successor.

The term " Code Committee " is defined to mean the Executive
Committee of the Association.

The term " Secretary " is defined to mean the Secretary of the
Supplementary Code Authority.

The term " Federation " as used herein is defined to mean Fabri-
cated Metal Products Federation or its successor.

Article III — Employment Provisions

This industry is a division of the Fabricated Metal Products Man-
ufacturing and Metal Finishing and Metal Coating Industry and the
labor provisions of its Basic Code as approved by the President are
the labor provisions of this Supplementary Code, as though herein
repeated and set forth at length.

Article IV — Organization and Administration

Section 1. During the period not to exceed sixty (60) da}rs follow-
ing the effective date, the Code Committee of the Association shall
constitute a Temporary Supplementary Code Authority until the
Supplementary Code Authority is elected.

There shall be constituted within the sixty (60) day period a Sup-
plementary Code Authority consisting of seven (7) members, to be
elected by the members of the Industry, at a meeting called by the
Temporary Supplementary Code Authority, upon ten (10) "clays'
notice sent by registered mail to all known members of the Industry,
who may vote either in person or by proxy. The members of the
Supplementary Code Authority first elected shall serve until the fol-
lowing annual meeting of the Association in October, 1934, and there-
after members of the Supplementary Code Authority shall be elected
at each annual meeting of the Association to serve until the follow-
ing annual meeting.

The members of the Supplementary Code Authority shall be
elected in the following manner :

(a) Two members who shall be members of the Industry by a
majority vote of all known members of the Industry present in per-
son or by proxy, each member to have one vote.

753

(b) One member who is not a member of the Association by a ma-
jority vote of all known members of the Industry, present in person,
or by proxy, each member to have one vote.

(c) Four members by a 51% vote of members of the Association
present in person or by proxy weighted on the basis of one vote for
each member and one additonal vote for each $5,000.00 of annual
sales in the previous calendar year reported to the Temporary Code
Authority: provided, however, that no member may cast more than
33%% of the total number of votes cast.

A vacancy in the membership of the Supplementary Code Author-
ity may be filled by a majority vote of the remaining members of
the Supplementary Code Authority.

Provided, however, that the right to vote as set forth above shall
be subject to the limitations provided in Section 4 of this Article.

In addition thereto the Administrator may appoint a member
of the Supplementary Code Authority who without vote shall serve
without expense to the Industry, unless the Supplementary Code
Authority agrees to pay such expense. The member who may be
appointed by the Administrator shall be given reasonable notice of
all meetings and may sit at all meetings of the Supplementary Code
Authority.

Section 2. Any Association directly or indirectly participating in
the selection or activities of the Supplementary Code Authority shall
(1) impose no inequitable restrictions on admission to 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 3. In order that the Supplementary Code Authority shall
at all times be truly representative of the Industry and in other
respects comply with the provisions of the Act, the Administrator
may prescribe such hearings as he may deem proper ; and thereafter
if he shall find that the Supplementary Code Authority is not truly
representative or does not in other respects comply with the pro-
visions of the Act, may require an approporiate modification in the
method of selection of the Supplementary Code Authority.

Section 4. All members of the Industry are subject to the jurisdic-
tion of the Supplementary Code; shall be entitled to participate in
Ihe activities of and share the benefits of the Supplementary Code
Authority; shall be entitled to vote in the selection of Classes (a)
and (b) members of the Supplementary Code Authority as provided
in Section 1 of this Article; and shall pa}T their reasonable share of
the expenses of the administration of this Supplementary Code, such
reasonable share to be determined by the Supplementary Code
Authority, subject to review by the Administrator, on the basis of vol-
ume of business and/or such other factors as may be deemed equitable
by the Supplementary Code Authority.

Section 5. The Supplementary Code Authority shall have all the
powers and duties which shall be necessary and proper to enable it
to fully administer this Supplementary Code and to effectuate its
purpose.

754

Without limitation to the f oregoing or any other powers or duties
provided for in this Supplementary Code, the Supplementary Code
Authority shall have the following specific duties :

(a) To establish after due notice, investigation and hearing
whether in their opinion any member of the Industry has committed
a violation of any provision of this Supplementary Code, and report
same to the Administrator. In case any member of the Industry
makes a complaint to the Supplementary Code Authority that any
other member of the Industry is not complying with any particular
trade practice rule of this Supplementary Code, the Supplementary
Code Authority may require the division of the Industry affected to-
make a written report of the facts with its recommendations to the
Supplementary Code Authority to guide its decision.

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

(c) To obtain from members of the Industry such information
and reports as the Supplementary Code Authority may require for
the administration of the Supplementary Code and to provide for
submission by members of the Industry of such information and
reports as are necessary for the purposes recited in Section 3 (a)
of the Act; provided that nothing in this Supplementary Code
shall relieve any member of the industry of any existing obligations
to furnish reports to any Government agency. No individual reports
shall be disclosed to any other member of the Industry or to anyone
other than the Administrator or his duly authorized representative
and as hereinafter provided.

(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 Supplementary
Code Authority of its duties or responsibilities under this Sup-
plementary 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 Supplementary Code with
such other codes, if any. as ma}- be related to this Industry.

(f) To secure from members of the Industry an equitable and
proportionate payment of the reasonable expenses of maintaining the
Supplementary Code Authority and its activities, based upon volume
of business and/or such other factors as the Supplementary Code
Authority may prescribe.

(g) 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 Supplementary
Code.

To require that any article manufactured by those members of
the Industry who have assented to and are complying with this
Supplementary Code shall bear the X.R.A. insignia.

755

(i) To furnish from time to time to the Basic Code Authority
•designated in said Basic Code such information as may be required
to be furnished under the terms of the Basic Code.

Section 6. Any and all information furnished to the Secretary of
the Supplementary Code Authority, or other person or committee
appointed by the Supplementary Code Authority, by a corporate
member of the Industry shall be subject to investigation to the extent
permitted by the Act for the purpose of verification by a disinterested
person or persons mutually agreed upon by the Supplementary Code
Authority and the member of the Industry or by a person or persons
nominated by the Supplementary Code Authority and approved by
the Administrator. The cost of such investigation shall be treated
as an expense of administering the Supplementary Code; provided,
however, that if upon such investigation any such information shall
be shown to have been incorrect in any material respect, such costs
shall be paid by the member of the Industry which furnished such
information, provided the said member has assented to the Supple-
mentary Code, and specifically to the provisions of this Section.

Section 7. All individual and private information received from
reports by the Secretary, appointee or committee, or as a result of
investigation shall be held in strict confidence and not disclosed to
any competitor or other persons outside the Secretary?s office, with-
out the permission of the member of the Industry involved.

Provided, however, that such information may be disclosed to any
authorized governmental agency.

Provided, further, that when necessary in the hearing of a com-
plaint information resulting from an investigation may be disclosed
to the Supplementary Code Authority or its appointee, and

Provided, further, that information pertaining to the reporting of
prices, terms and conditions may be disclosed to effectuate the pur-
poses of this Supplementary Code in accordance with Article Y,
Rule 1.

Section 8. Any division may adopt its own regulations and col-
lect statistics to carry out the Fair Trade Practices and any other
provisions of this Supplementary Code.

Each industrial division shall keep minutes of its meetings,
copies of which minutes shall be filed with the Secretary.

Section 9. The members of the Industry shall report in the first
instance to the Supplementary Code Authority or their appointees
any complaints regarding an alleged violation of this Supplementary
Code. The Supplementary Code Authority shall have the power to
establish after due notice, investigation and hearing, whether in their
opinion any member of the Industry has committed a violation of
any provision of this Supplementary Code, and report same to the
Administrator. The Supplementary Code Authority shall in addi-
tion to the penalties provided by the National Industrial Recovery
Act further have the power to establish from time to time fines
and penalties for the breach of said provision by those assenting to
this Supplementary Code and specifically to this provision and to
make adequate rules and take such action for the collection and the
disposition of said fines after collection or the waiving of said
fines as they deem proper in the interest of the Industry or Industry

756

Divisions and in conformity with the purpose of the National Indus-
trial Recovery Act. An appeal from the determination of and iines
and penalties imposed by the Supplementary Code Authority may
be made to the Administrator.

Section 10. Nothing contained in this Supplementary Code shall
constitute the members of the Supplementary Code Authority part-
ners for any purpose. Xor shall any member of the Supplementary
Code Authority be liable in any manner to anyone for any act of
any other member, officer, agent or employee of the Supplementary
Code Authority. Nor shall any member of the Supplementary Code
Authority, exercising reasonable diligence in the conduct of his duties
hereunder, be liable to anyone for any action or omission to act under
this Supplementary Code, except for his own willful misfeasance or
non-feasance.

Section 11. If the Administrator believes that any action of the
Supplementary Code Authority or any agency thereof is unfair or
unjust or contrary to the public interest, the Administrator may re-
quire that such action be suspended for a period of not to exceed
thirty (30) days to afford an opportunity for investigation of the
merits of such action. Further action by such Supplementary Code
Authority or agency regarding the matter complained of shall not
be taken if disapproved by the Administrator on or before the expira-
tion of the thirty (30) day period set forth above.

Article V — Unfair Trade Practices

In addition to the unfair trade practices covered by Article V of
the Basic Code which are incorporated herein, the same as though
herein repeated and set forth at length and for all purposes of this
Supplementary Code, the following described acts shall constitute
unfair practices. Any member of the industry who shall directly or
indirectly through any officer, employee, agent or representative,
use or employ any of such unfair practices, shall be guilty of a viola-
tion of this Supplementary Code.

Rule 1. Every member of the Industry shall file with the Sup-
plementary Code Authority within ten (10) days after the effective
date price lists and copies of all other quotations and terms of sale
including credit, freight and all discounts individually prepared by
him which shall be open to the inspection of all members of his
Industry division and all other interested persons, and any depar-
ture therefrom by any member of the Industry with respect to any
particular customer is an unfair trade practice. Revised prices, as
made from time to time, shall be filed with the Supplementary Code
Authority to become effective ten (10) days from the receipt thereof
by the Supplementary Code Authority and copies thereof with
notice of the effective date, shall thereupon be immediately sent to
all members of the same Industry Division who may file, if they
so desire, revisions of their prices which shall become effective upon
the date when the revised prices first filed shall go into effect.

No member of the Industry shall so classify his customers that
the different prices charged at the same time for the same goods

757

for the same quantity to different customers constitute unfair dis-
crimination between customers or unfair competition in the Industry
Division.

Each member of the Industry shall furnish the Supplementary
Code Authority for distribution such number of copies of his price
lists and/or discount sheets as Supplementary Code Authority may
prescribe.1

Rule 2. The Supplementary Code Authority shall make studies
for the simplification of products in the different divisions of the
Industry, the elimination of unnecessary or infrequently demanded
sizes or types and for the establishment of dimensional standards in
cooperation with the Bureau of Standards of the United States De-
partment of Commerce with the view to their recommendations for
adoption by the different divisions of this Industry. This study
shall be completed within the period of one (1) year from the effec-
tive date of this Supplementary Code. Such recommendations oi
the Supplementary Code Authority for a division of the Industry,
when approved by two-thirds vote of the members of the division
of the Industry and the Administrator, shall become the standards
for the division and shall become effective sixty (60) days after
such approval. Thereafter, all members of the division shall follow
such standards. Failure to follow such standards set-up by the
Supplementary Code Authority, so approved by the members of
the division of the Industry and the Administrator, will be an unfair
method of competition and a violation of this Supplementary Code.
Provided, however, that exceptions to such standards may be applied
for by formally petitioning the Supplementary Code Authority, and
if the Supplementary Code Authority does not disapprove in writ-
ing wTithin sixty (60) days the petition shall become final when rati-
fied by two-thirds vote of the members of such division of the In-
dustry, and if the Supplementary Code Authority disapproves, an
appeal may be taken to the Administrator.

Rule 3. Piracy. — To imitate or simulate a competitor's catalogue
number by which his particular goods are known and identified, or to
imitate a competitor's product, in which he or it has acquired a good
will, in design or dress to such a degree as to deceive or have a
tendency to deceive customers or prospective customers.

Rule 4. Consignment. — Shipping goods on consignment, except
under circumstances to be defined by the Supplementary Code Au-
thority, when peculiar circumstances of the Industry require the
practice.

Rule 5. Imports. — If it shall develop that foreign-made goods are
offered at a price less than that which may be quoted by any member
of the Industry under the provisions of this Supplementary Code,
the facts shall be reported to the Supplementary Code Authority,
who will take the matter up with the proper Government agency for
relief through adjustment of the tariff.

Rule 6. Exports. — Except as may be subsequently set forth in a
specific or Supplementary Export Code for the Industry, the pro-
visions of this Supplementary Code now or hereafter adopted with

1 See paragraph 2 of order approving this Code.

758

regard to prices, discounts, deductions, allowances, extras, com-
missions or methods and/or terms of sale, are not to apply to direct
•export sales. The term " export " shall include, in addition to
shipments to foreign countries shipments to such United States
possessions as may be defined by the Supplementary Code Authority
and approved by the Administrator.

Rule 7. Increased Facilities to be Reported. — The present capac-
ity of the Industry is far in excess of present or prospective needs.
Therefore after the effective date of this Supplementary Code no
present member of the Industry shall initiate construction of or
install any additional producing equipment or dies for the manu-
facture of lines which he is not selling or manufacturing or of
which he has not already initiated the manufacture at the time of
the approval of this Supplementary Code without first reporting
to the Supplementary Code Authority and to the Administrator the
need for additional productive capacity and his ability to supply it
economically.

If in the future any other individual, firm, corporation, partner-
ship or other form of enterprise desires to establish additional
capacities, production, equipment or dies for tools and implements
as covered by this Supplementary Code he or it also shall first report
to the Supplementary Code Authority and the Administrator the
same information required in the preceding paragraph.

In both cases the Supplementary Code Authority shall report
the facts to the Administrator and state whether in its judgment
in the present emergency public necessity and convenience requires
such additional capacity.

Rule 8. Selling Below Reasonable Cost. — When the Supplemen-
tary 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 Supplementary Code, the Supplementary
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 deter-
mination. 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 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 Supplementary
Code Authority, upon its own initiative or upon the request of any
interested party, shall cause the determination to be reviewed.

Article VI — Monopolies

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

759
Article VII — Modification

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

Section 2. By presenting this Supplementary Code the members
of the Industry do not hereby consent to any modification thereof,
and they reserve the right to object to any such modifications without
being given an opportunity to be heard.

Section 3. This Supplementary Code, except as to provisions
required by the Act, may be modified or amended on the basis of
experience or changes in circumstances, such modifications and/or
amendments to be based upon application by the Supplementary
Code Authority or other representative group within the industry
to the Administrator and such notice and hearing as he shall specify
and to become effective on the approval by the President, and/or the
Administrator.

Article VIII — 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 costs should
be delayed, but when made, such increases should, so far as possible,,
be limited to actual additional increases in the seller's costs.

Article IX — Constitutionality

By presenting this Supplementary Code, those assenting hereto are
not thereby wTaiving any of their constitutional rights.

Article X — Effective Date and Duration

This Supplementary Code shall become effective at 12 : 01 o'clock
A.M. Eastern Standard Time on the tenth da}^ after it is approved
by the Administrator and shall continue in effect until June 16, 1935
or the earliest date prior thereto on which the President shall, by
proclamation, or the Congress shall, by joint resolution declare that
the emergency recognized by Section 1 of the National Industrial
Recovery Act, has ended.

Approved Code No. 84 — Supplement No. 7.
Registry No. 1149-1-05.

Approved Code No. 201 — Supplement No. 3
SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

COMMERCIAL STATIONERY AND OFFICE
OUTFITTING TRADE

As Approved on March 16, 1934

ORDER

Supplementary Code of Fair Competition for the Commercial
Stationery and Office Outfitting Trade

a division of the wholesaling or distributing trade

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Supple-
mental Code of Fair Competition for the Commercial Stationery and
Office Outfitting Trade to the Code of Fair Competition for the
Wholesaling or Distributing Trade, and hearings having been duly
held thereon and the annexed report on said Code, containing find-
ings with respect thereto, having been made and directed to the
President :

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
A. D. Whiteside,

Division Administrator.

Washington, D.C.,

March 16, 1931^.

(761)

REPORT TO THE PRESIDENT

The President.

The White House,
Sir: This is a report of the Hearing on the Supplemental Code
of Fair Competition for the Commercial Stationer and Office Out-
fitting Trade, a division of the Wholesaling or Distributing Trade,
conducted in Room 2062, Commerce Building, on February 9, 1934.
The Supplemental Code which is attached was presented by duly
qualified and authorized representatives of the Trade, complying
with the statutory requirements, said to represent about 75 percent
in number and about 80 percent in volume of sales of the Trade
which could be included under this Supplemental Code.

THE TRADE

The Census of Wholesale Distribution does not separately classify
this Trade. According to what appear to be carefully and intelli-
gently compiled statistics furnished by Members of the Trade there
are at the present time approximately 1,700 concerns engaged in
this business. In 1929 there were approximately 2,000 concerns so
engaged. Total annual sales in the Trade in 1929 were about $168,-
000,000 and employees were approximated 21,000 in number. In
1933 the sales had declined to about $100,000,000 while the number
of employees had fallen to about 15,300.

PROVISIONS OF THE SUPPLEMENTAL CODE

Since this Code is supplemental to the Code of Fair Competition
for the Wholesaling or Distributing Trade, it contains no labor pro-
visions. The provisions containing supplemental definitions are
inclusive and accurate.

The supplement to the administrative provisions of the General
Code establishes a Divisional Code Authority which is fairly and
adequately representative of all the different elements in the Trade.
The Constitution and Bylaws of the National Stationers Association
shortly will be amended so as to remove all inequitable restrictions
on membership. The method provided for the election of the mem-
bers of the Divisional Code Authority adequately protects those
Members of the Trade which are not members of the Association.

The Trade Practice rules contained in this Supplemental Code are
not in any respect objectionable and are designed to promote fair
competition in the Trade.

findings

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

(762)

763

I find that

(a) Said Supplemental Code is well designed to promote the poli-
cies and purposes of Title I of the National Industrial Kecovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof.
and will provide for the general welfare by promoting the organiza-
tion of trade 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 full-
est possible use of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.

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

(c) The Supplemental 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 a trade association truly representative of
the aforesaid Trade ; and that said association imposes no inequitable
restrictions on admission to membership therein.

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

(e) The Supplemental Code is not designed to and will not elimi-
nate or oppress small enterprises and will not operate to discrimi-
nate against them.

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

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

Hugh S. Johnson,

Administrator.
March 16, 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE COMMERCIAL STATIONERY AND OFFICE OUT-
FITTING TRADE

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE

Article I — Purposes

To further effectuate the policies of Title*J of the National Indus-
trial Recovery Act the following provisions are established as a
Supplemental Code of Fair Competition for the Commercial Sta-
tionery and Office Outfitting Trade (which Trade has heretofore,
by an order of the Administrator, been made a Division of the
Wholesaling or Distributing Trade) to the Code of Fair Competition
for such Wholesaling or Distributing Trade, as provided by Article
VI, Section 1 (c) thereof, and shall be considered a part of and in
connection with such Wholesaling or Distributing Code, and both
such codes shall be binding upon every member of such Commercial
Stationery and Office Outfitting Trade.

Article II — Definitions

Supplementing Article II of the General Code.

Distributor. — The term " Distributor " as used herein is denned as
a person, or firm or definitely organized division thereof, specifically
set up to render a general distribution service, which buys and
maintains at his or its place of business a stock of commercial station-
ery, office supplies and/or equipment commonly used in the outfitting
of offices, and which through salesmen, advertising and/or sales
promotion devices, sells to institutional, commercial, and/or indus-
trial users, but which does not sell in significant amounts to ultimate
consumers.

This term shall not include concerns whose primary business is
under the Retail Code.

Wholesaler. — The term " Wholesaler " as used herein is defined as
a person or firm, or definitely organized division thereof, specifically
set up to render a general distribution service, which buys and
maintains at his or its place of business a stock of commercial sta-
tionery, office supplies and/or equipment commonly used in the
outfitting of offices, and which through salesmen, advertising and/or
sales promotion devices, sells to retailers.

Trade. — The term " Trade " as used herein is defined as the
distribution of stationery for commercial uses and/or of those articles
commonly used in the outfitting of offices.

Member of the Trade. — The term " Member of the Trade " as used
herein is defined as a " Wholesaler " or " Distributor " whose prin-
cipal business is in the Trade as defined above.

(764)

765

Regional Districts. — The term " Regional District " as used herein
is defined to include and be coincident with the geographical divi-
sions established by the National Stationers Association, which
geographical divisions conform to the Federal Reserve Districts ex-
cept for the addition of one District known as the Metropolitan
District of New York, and such other districts as necessary to in-
clude territorial possessions of the United States, other than the
Philippine Islands.

Divisional Code Authority. — The term " Divisional Code Au-
thority ", as used herein, shall mean the Divisional Code Authority
for the Commercial Stationery and Office Outfitting Trade, a divi-
sion of the Wholesaling or Distributing Trade.

General Code. — The term u General Code ", as used herein, shall
mean the Code of Fair Competition for the Wholesaling or Distrib-
uting Trade.

Article III

Supplementing Article VI, Sections 2 and 5, of the General Code.

Section 1. (a) The Divisional Code Authority shall be composed
of six members representing the Trade, two of whom shall be dis-
tributors, two wholesalers, and two members of the Trade whose
principal business is Office Outfitting.

(b) Such six representatives shall be elected from a National
Council to be composed of two distributors, two wholesalers, and two
members of the Trade whose principal business is Office Outfitting,
selected from each regional district by a majority vote of all mem-
bers of the Trade in such district who assent to the provisions of
the General and Supplemental Codes by signing a Certificate of
Assent and Compliance.

(c) The preparation of ballots and the manner of electing both
the representatives to the National Council and the members of the
Divisional Code Authority shall be subject to the approval of the
Administrator.

Section 2. With the approval of the Administrator, the Divi-
sional Code Authority shall appoint appropriate agencies for the
administration of the code in each regional district or subdivision
of such district and shall delegate to said agency the necessary
power and authority for the administration of the two codes, in-
cluding the power to adopt rules of procedure necessary to effec-
tuate such purposes. With the approval of the Administrator the
Divisional Code Authority may use for this purpose the facilities
of those trade associations which are duly representative of such
district or subdivisions. Nothing herein, however, shall be consid-
ered to relieve the Divisional Code Authority of any of its duties
and responsibilities.

Section 3. The Divisional Code Authority shall appoint one of its
members to a committee which (if and when the Divisional Code
Authorities of the Wholesale Stationery Trade and the School Sup-
plies Trade shall appoint one member each, thereto) shall constitute
a coordinating committee of the three Trades, and the Divisional
Code Authority shall thereupon delegate to such member such of its
general powers as may be necessary for him, in collaboration with the

766

other two members, to coordinate the administration of the Sup-
plemental Codes for the three Trades, so as to assure that such
administration will be fair and equitable to each of said Trades.
Nothing herein, however, shall be considered to relieve the Divi-
sional Code Authority of any of its duties and responsibilities. The
Divisional Code Authority shall abide by any judgment of the Coor-
dinating Committee requiring that committee to report to the
Administrator any alleged violation of the provisions of this Sup-
plemental Code which requires the cooperation of the three trades
in its adjustment.

Section 4. The successor to any member of the Divisional Code
Authority shall be nominated and elected in accordance with a plan
devised by the Divisional Code Authority subject to the approval
of the Administrator.

Section 5. The Divisional Code Authority shall have the following
duties and powers in addition to those prescribed in the General
Code, subject to review by the Administrator.

(a) 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, except other Supplemental Codes to the
General Code, for the purpose of formulating Fair Trade Practices
to govern the relationships between production and distribution em-
ployers under this Code and under such others, to the end that such
Fair Trade Practices may be proposed to the Administrator as an
amendment to this Code and such other Codes.

(b) To appoint a Regional Committee in each Regional District,
to assist the Divisional Code Authority in administering the Code ;
provided, however, that nothing herein shall relieve the Divisional
Code Authority of its responsibilities as such.

(c) To organize, elect officers, hire employees, and perform such
other acts as may be necessary for the proper administration of the
Code.

Section 6. Nothing contained in this Supplemental Code shall
constitute the members of the Divisional Code Authority partners
for any purpose nor shall any members of the Divisional Code Au-
thority be liable in any manner to anyone for any act of any other
members, officers, agents, or employees of the Divisional Code
Authority. Nor shall any member of the Divisional 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 Supplemental Code, except for his own wilful misfeasance or
nonfeasance.

Section 7. If the Administrator shall determine that any action of
the 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 for further consider-
ation 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.

767
Article IV — Trade Practices

Supplementing Article VII of the General Code.

Section 1. Price Guarantee. — The sale or offer for sale of any office
furniture under any form of guarantee to the purchaser against
either an advance or decline in the price of such office furniture is
an unfair method of competition.

Section 2. Factory Shipments. — On f.o.b. factory shipments of
merchandise direct to the customer on which the selling member of
the Trade has not filed an f.o.b. factory price in his open price
schedule and which do not include any handling service on the part
of such member of the Trade, due allowance can be given to the cus-
tomer in lieu of such service; but in no case can the price quoted
be below invoice or replacement vOst, whichever is lower.

Section 3. The trade practices contained in this Supplemental
Code shall apply only to wholesalers or distributors in this Trade
as defined in Article II.

Article V — Permissive Trade Practices

Supplementing Article VIII, Section 2, of the General Code.

Section 1. Open Price Arrangement and Accounting. — (a) The
Divisional 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 and approved by the Administrator, full de-
tails concerning them shall be made available to all members of the
Trade. Thereafter all members of the Trade shall determine and/or
estimate costs in accordance with the principles of such methods.

(b) With the advice and consent of the Administrator, the Divi-
sional Code Authority may at any time determine that an open price
plan of selling such commodity or commodities of the Trade as it
shall specify shall be put into effect. Notice of such determination
shall be announced to all known members of the Trade who distribute
such commodities.

(c) Every such member of the Trade shall file with the Divisional
Code Authority a schedule of prices and terms of sale for such com-
modity or commodities, which schedule shall become effective imme-
diately upon filing.

(d) All such schedules shall be in such form as the Divisional
Code Authority shall prescribe and shall contain all information
necessary to permit any interested person to determine the exact net
price per unit after all discounts or other deductions have been made^
whether pertaining to a single order, a commitment for future de-
livery, or a contract. Any such schedule, or any price therein, may
apply nationally or may be limited to one or more geographical
divisions.

(e) A revised schedule or schedules, or a new schedule or sched-
ules, may be filed by a member of the Trade with the Divisional Code
Authority at any time. Such new or revised schedules shall take
effect immediately upon filing.

(f) The Divisional Code Authority shall promptly supply all
members of the Trade with copies of all schedules and revised sched-

51699—34 11

768

ules, and shall furnish such copies to any other interested party upon
request and receipt of cost of furnishing the same.

(g) Xo member of the Trade who shall have filed a schedule of
prices shall sell for other than such prices or upon terms or condi-
tions other than those stated in such price schedule.

(h) Xo member of the Trade shall sell any commodity on which
he has filed no price at less than the cost, determined as provided in
Section 1(a) hereof, except to meet the price of a competitor whose
price does not violate such Section.

(i) For the purpose of determining whether Section 1(h) hereof
has been complied with, every member of the Trade shall, upon the
request of the Divisional Code Authority, furnish to a confidential
agency designated by the Divisional Code Authority, in respect to
closed transactions only, complete information in regard to any quo-
tation, order, contract, or sale of any product of the Trade, includ-
ing 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 quota-
tion, contract, or sale. Such information shall be held as secret and
confidential between the agency and the reporting member of the
Trade: provided that, upon request of the Administrator, any such
information shall be given to him. The agency shall analyze, con-
solidate, and digest the reports and shall disclose to the Divisional
Code Authority such information as may be necessary to aid the
investigation.

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

(k) Nothing herein contained shall be construed to prevent the
fulfillment of a bona fide contract existing on the date of approval
of this Code.

Section 2. Installment Sales. — In the case of installment sales,
the Divisional Code Authority may make recommendations to the
Administrator relative to minimum down pajmients on any com-
modity of the Trade in any Regional District. The Administrator
may. after such notice and/or hearing as he may prescribe, approve
of said recommendation, which shall thereafter become a part of
this Code and shall be effective as such.

Section 3. (a) The Divisional Code Authority may recommend
to the Administrator a plan for establishing, on a regional basis,
maximum trade-in allowances for used desks and chairs and other
items ordinarily used for trade-in purposes, and for enforcing the
same. The Administrator may, after such notice and/or hearing
as he may prescribe, approve of said plan, which shall thereafter
become a part of this Code and shall be effective as such.

Section 4. Within one month after the effective date of this Code,
the Divisional Code Authority shall appoint a committee to make
a study with a view to establishing, as soon as possible after the
effective date of the Code, classifications and standards of dimension
and quality for such of the products of the industry as it may select

769

in cooperation with the Bureau of Standards of the Department of
Commerce and/or any other organization which will guarantee both
Government and Consumer representation in the drafting of such
standards. This committee shall within one year after the date of
its appointment report its recommendations to the Divisional Code
Authority.

Article VI — Effective Date

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

Approved Code No. 201 — Supplement No. 3.
Registry No. 409-1-02.

Approved Code No. 201 — Supplement No. 2
SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

WHOLESALE WALLPAPER TRADE

As Approved on March 16, 1934

ORDER

Supplementary Code of Fair Competition for the Wholesale

Wallpaper Trade

a division of the wholesaling or distributing trade

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Supple-
mental Code of Fair Competition for the Wholesale Wallpaper Trade
to the Code of Fair Competition for the Wholesaling or Distributing
Trade, and hearings having been duly held thereon and the annexed
report on said Code, containing findings with respect thereto, having
been made and directed to the President :

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
A. D. Whiteside,

Division Administrator.

Washington, D.C.,

March 16, 1934.

(771)

KEPORT TO THE PRESIDENT

The President,

The White House.
Sir : This is a report of the Hearing on the Code of Fair Competi-
tion for the Wholesale Wallpaper Trade, conducted in the Pan
American Room of the Mayflower Hotel, on November 16, 1933.
The Code which is attached was presented by duly qualified and
authorized representatives of the Trade, complying with the statu-
tory requirements, said to represent 62 percent in number and
approximately 90 percent in volume of the Trade which could be
included in this Code.

THE TRADE

The decline of the Trade in the past three years renders the census
data obsolete. According to statistics furnished by members of the
Trade there are approximately 450 establishments with net sales of
$19,000,000 in 1932 while the estimated sales in 1929 amounted to
$30,000,000. The Trade employs about 2,700 persons.

PROVISIONS OF THE CODE

Since this code is supplemental to the General Code of Fair Com-
petition for the Wholesaling or Distributing Trade, it contains no
labor provisions.

The provisions containing supplemental definitions are inclusive
and accurate.

The supplement to the administrative provisions establishes a
Divisional Code Authority for the Trade, which is representative of
the different elements in the Trade. According to the statistics sub-
mitted by the Trade, the National Wallpaper Wholesaler's Associa-
tion contains among its members, or is authorized to represent in
the administration of the code, 62 percent of the number of concerns
in the Trade. Its members sell approximately 90 percent of the total
sales volume. The selection of five representatives of the Code Au-
thority by the Association and two representatives by nonmembers
of the Association is representative of the Trade.

The trade practices proposed in the supplement to Article VIII
are not in any respect objectionable. The provisions governing the
distribution and marking of sample books establish uniform prac-
tices in connection with these activities and are designed to promote
fair dealing in 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 ;

(772)

773

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 tends 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 elimi-
nating unfair competitive practices, by promoting the fullest pos-
sible utilization of the present productive capacity of industries, by
avoiding undue restriction of production (except as may be tempo-
rarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.

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

(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant group is
a trade group truly representative of the aforesaid Trade ; and that
said group imposes no inequitable restrictions on admission to mem-
bership 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 Supplemental Code has been approved.
Respectfully,

Hugh S. Johnson, Administrator.
March 16, 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE WHOLESALE WALL PAPER TRADE

A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE

Article I — Purposes

To further effectuate the policies of Title I of the National Indus-
trial Recovery Act, the following provisions are established as a
Supplemental Code of Fair Competition for the Wholesale Wall
Paper Trade to the Code of Fair Competition for the Wholesaling
or Distributing Trade, as provided by Article VI, Section 1 (c)
thereof, and such Supplemental Code shall be considered as a part
of and in connection with said Code for the Wholesaling or Distrib-
uting Trade ; and both Codes shall be binding upon every member of
such Wholesale Wall Paper Trade.

Article II — Definitions

SUPPLEMENTING ARTICLE II OF GENERAL CODE

The term " wholesaler " or " distributor ", shall be defined as a
person or firm, or definitely organized division thereof, definitely
organized and rendering a wholesale distribution service in Wall
Paper, which buys and maintains at his or its place of business a
stock of Wall Paper which it distributes ; and which, through sales-
men, advertising and/or sales promotion devices, sells to retailers
and decorators, but which does not sell in significant amounts to
ultimate consumers.

The term " Divisional Code Authority ", as used herein, shall
mean the Divisional Code Authority for the Wholesale Wall Paper
Trade, a division of the Wholesaling or Distributing Trade.

The term " General Code ", as used herein, shall mean the Code of
Fair Competition for the Wholesaling or Distributing Trade.

Jobs. — The term " Jobs " is defined to mean all unsold Wall
Papers which have been in a line of a wholesaler in any current
year and which shall not be included in the line or lines of such
wholesaler in the succeeding current year.

Article III — Administration-
supplementing ARTICLE VI, SECTION 2 (E) OF THE GENERAL CODE

Sec. 1. The Divisional Code Authority for the Wholesale Wall
Paper Trade shall consist of seven (T) members of the trade, five
(5) to be elected by the Board of Directors of the National Wall
Paper Wholesalers' Association; and two (2) representatives to
be elected by members of the trade who are not members of said
Association, in a manner to be approved by the Administrator.

(774)

775
Article IV — Trade Practices

SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE

As expressly permitted in Article VIII, Section 2, of the Code of
Fair Competition for the Wholesaling or Distributing Trade, the
following practices constitute additional unfair methods of compe-
tition for members of the Wholesale Wall Paper Trade and are
prohibited :

1. Loss Limitation Provision. — Selling merchandise, except to
other Wall Paper Wholesalers, at less than cost. Such cost shall
include the actual net invoice purchase price, plus transportation
charges to seller's warehouse ; and further, when fixed and published
from time to time by the Divisional Code Authority, subject to the
approval of the Administrator; an allowance for actual wages in-
volved in effecting the sale and delivery of the goods by the whole-
saler or distributor.

Exceptions : Notwithstanding the provision of this section, any
wholesaler or distributor may sell any article of merchandise at a
price as low as the price set by any competitor in his trade area on
merchandise which is identical or essentially the same, if such com-
petitor's price is set in conformity with this provision. A whole-
saler or distributor who thus reduces his price to meet a competitor's
price as above defined, shall not be deemed to have violated the
provisions of this section if such wholesaler or distributor imme-
diately notifies the Divisional Code Authority of such action and all
facts pertinent thereto; nothing in this section, however, shall
apply to the sale of jobs, seconds, damaged goods or close-outs.

2. Sale of Jobs, etc. — The selling of current year's goods as jobs,
seconds, damaged goods or close-outs, by any wholesaler or distrib-
utor to any buyer, before the thirty-first day of December in any
year.

No jobs, seconds, damaged goods or close-outs shall be sold by
any wholesaler or distributor to any buyer at a price below 33^3%
of the price quoted on new goods to buyers of the same type. There
shall be no restriction as to selling price of jobs after they have
been out of the current year's line for more than one year.

3. Selling Sample Books Below Cost. — The making of sample books
for any customer and failing to include in the cost of said sample
books the cost of the Wall Paper used therein, charged at the same
rate by said wholesaler or distributor to said customer as the goods
said customer has purchased for stock, and in addition, any other
expenses incurred in the making of said sample books. This shall
not apply to one book known as " Book of Selections " furnished to
a customer b}T a wholesaler or distributor with his order. No more
than one sample book or " Book of Selections " shall be given to a
customer by a wholesaler or distributor.

4. Sample Book Marking. — Indicating, marking or printing " fair
values " by any method other than plain dollars and cents figures.

5. Issuance of Sample Books. — Issuance of current year's sample
books to retailers or decorators before January 1 of any year. The
term "current year" is denned to mean the twelve (12) months'
period succeeding December 31 of each year.

6. Protection to Retailers. — The selling of merchandise to ultimate
consumers for personal use at wholesale prices, or the supplying of
merchandise to industrial, civic, institutional or similar customers,
for the personal use of employees of such concerns, at wholesale
prices, thereby engaging in competition with retailers.

7. Sample Book Distribution. — (a) To curtail waste due to the
over-distribution of sets of sample books, stands, and/or other forms
of collective sample showings, the quantity thereof distributed by any
wholesaler or distributor during the period of the effectiveness of
this Code, shall not exceed an amount equal to the average annual
number of such sets distributed by said wholesaler or distributor
during the five years immediately preceding January 1, 1934 ; except
that if the five year average is less than in the year 1933, then said
wholesaler or distributor may distribute in the year 1934 as many
sets of sample books, stands, and/or other forms of collective sample
showings as he did in the year immediately preceding. This method
of computing the number that shall be distributed shall apply to
each succeeding year during the effectiveness of this Code.

(b) If reasonable requirement can be shown for the distribution
of a greater number of such sets of sample books than herein pro-
vided for, privilege for such additional distribution or new distribu-
tion shall be given upon application to the Divisional Code Author-
ity on evidence found by that Authority to justify such additional
requirement, provided that any such finding of the Code Authority
shall be subject to the review and disapproval of the Administrator.

Nothing in paragraphs (a) and (b) above shall apply to a whole-
saler or distributor annually issuing less than one hundred (100)
sets of sample books.

8. Sample Booh Marking. — (a) All sample books, stands, and/or
other forms of collective sample showings shall have a " fair value "
marked or printed on the back of every sample, plainly in dollars
and cents per single roll or yard. This paragraph shall not be con-
strued to establish the price at which a retailer or decorator shall sell
the paper so marked.

(b) All sample books, stands, and/or other forms of collective
sample showings shall have the retailer's or decorator's net cost for
room lot purchases marked or printed by a uniform symbol, as
adopted by the Divisional Code Authority. In no case shall this
symbol appear except on the back of the sample, and not in any way
as a part of either the pattern number or the marked or printed <; fair
value." (Paragraph (b) of this section not compulsory until after
April 1, 1934.)

(c) On sidewalls and/or ceilings, the prices marked or printed in
sample books and/or Floor Stand Books, shall be based upon the
unit roll as approved by the United States Department of Com-
merce in Commercial Standard CS 16-29. On borders, prices shall
be quoted on the basis of a single width lineal yard.

(d) All sample books for free distribution shall be marked as
being the property of the wholesaler or distributor issuing said books,
and that they are loaned to the concern to whom issued for the
period designated. The title to said sample books shall remain in the
distributor or wholesaler.

777

9. Freight Allowance. — In wholesale distribution of Wall Paper
applying to dealers' purchases for stock, all wholesalers or distribu-
tors shall sell on the basis F.o.b. own warehouse, with no greater
freight allowance than railroad freight equalization, carload rates
or L.C.L. rates, as the case may be, to nearest competing wholesaler
or distributor or manufacturer to the customer being sold. No
freight shall be prepaid by any wholesaler or distributor on dealers'
purchases for stock. This clause does not apply to purchases in
room lots when sold at advance prices above the wholesaler's or
distributor's price for stock orders.

10. Terms of Sale. — In wholesale distribution applying to dealers'
purchases for stock, the terms shall be no more favorable than the
following: 91 days net. Discount for cash payment 3%, 30 days;
2%, 60 days ; 1%, 90 days. An additional deduction to be allowed for
cash payment within discounting periods for shipments made in
September, 4% ; in October, 3% ; in November, 2% ; in December, 1%.

In wholesale distribution applying to dealers' purchases in room
lots, the terms shall be no more favorable than the following: Dis-
count of not to exceed 3% for cash payment 10th of the month fol-
lowing the date of purchase.

11. Ungrounded Wall Paper. — In the interests of the ultimate
consumer, all surface printed Wall Papers in which the raw stock
has not been fully grounded before the design (top colors) is printed
thereon, shown in sample books, stands and/or other forms of col-
lective sample showings, shall be plainly printed with the word " un-
grounded " on the back of samples of such goods. No Wall Paper
made on ungrounded stock shall be marked in any way to indicate
that it is a non-fading paper.

Article V — Effective Date

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

Approved Code No. 201 — Supplement No. 2.
Registry No. 41O-A-04.

Approved Code No. 84 — Supplement No. 8
SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

HACK SAW BLADE MANUFACTURING INDUSTRY

As Approved on March 17, 1934

ORDER

Approving Supplementary Code of Fair Competition for the
Hack Saw Blade Manufacturing Industry

a division of the fabricated metal products manufacturing and
metal finishing and metal coating industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, and in accordance with the
provisions of Section I of Article VI of the Basic Code for the
Fabricated Metal Products Manufacturing and Metal Finishing and
Metal Coating Industry, approved November 2, 1933, for approval
of a Supplementary Code of Fair Competition for the Hack Saw
Blade Manufacturing Industry; and hearing having been duly held
thereon; and the annexed report on said Supplementary Code, con-
taining findings with respect thereto, having been made and directed
to the President:

(779)

780

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 Supplementary 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. E. Glancy,

Division Administrator.

Washington, D.C.,

March 17, 193^

REPORT TO THE PRESIDENT

The Presilitxt,

The White House.
Sir: This is a report on the Supplementary Code of Fair Com-
petition for the Hack Saw Blade Manufacturing Industry, a divi-
sion of the Fabricated Metal Products Manufacturing and Metal
Finishing and Metal Coating Industry, the hearing having been
conducted thereon in Washington, D.C., December 20, 1933, in
accordance with the provisions of Title I of the National Industrial
Recovery Act.

GENERAL STATEMENT

The Hack Saw Blade Manufacturing Industry, being truly rep-
resentative of this division of the Fabricated Metal Products Manu-
facturing and Metal Finishing and Metal Coating Industry, has
elected to avail itself of the option of submitting a Supplementary
Code of Fair Practice, as provided for in Section 1 of Article VI
of the Basic Code, for the Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating Industry approved by you
on the second day of November, 1933.

RESUME OF THE CODE

Article I states the purpose of the Supplementary Code.

Article II accurately defines specific terms employed in the Sup-
plementary Code.

Article III establishes a Supplementary Code Authority consisting
of three (3) members elected by the members of the Industry at a
meeting called by the Supplementary Code Authority, and gives
the Administrator the authority to appoint one to three additional
members without vote and provides machinery for obtaining sta-
tistics and the administration of the Supplementary Code.

Article IV. This Industry is a division of the Fabricated Metal
Products Manufacturing and Metal Finishing and Metal Coating
Industry and the labor provisions of its Basic Code, as approved
November 2, 1933, are the labor provisions of this Supplementary
Code.

Article V provides for the filing of price sheets with the Supple-
mentary Code Authority.

Article VI sets forth the unfair trade practices of this Supple-
mentary Code which has been especially designed to offset unfair
competition in this division of the Industry.

Article VII contains the mandatory provisions contained in Sec-
tion 10 (b) and also provides for the submission of proposed amend-
ments to the Supplementary Code.

782

Article VIII provides against monopolies and monopolistic prac-
tices, and recognizes that price increases be limited to actual addi-
tional increase in the seller's costs.

Article IX states the effective date of this Supplementary Code.

FINDINGS

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

I find that:

(a) Said Supplementary Code is well designed to promote the
policies and purposes of Title I of the National Industrial Kecovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the organiza-
tion of industry for the purposes 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 in-
dustries, by avoiding undue restriction of production (except as may
be temporarily required), by increasing the consumption of indus-
trial and agricultural products through increasing purchasing power,
by reducing and relieving unemployment by improving standards of
labor, and by otherwise rehabilitating industry.

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

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

(d) The supplementary Code is not designed to and will not per-
mit monopolies or monopolistic practices.

(e) The Supplementary Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate agains.t them.

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

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

Respectfully,

Hugh S. Johnson,

Administrator.
March 17, 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE HACK SAW BLADE MANUFACTURING INDUS-
TRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY

Article I — Purposes

To effectuate the policies of Title I of the National Industrial
Recovery Act, this Supplementary Code is established as a code
of fair competition for the Hack Saw Manufacturing Industry,
pursuant to Article VI of the Basic Code of Fair Competition for
the Fabricated Metal Products Manufacturing and Metal Finishing
and Metal Coating Industry approved by the President of the
United States on the 2nd day of November, 1933, and the provisions
of this Supplementary Code shall be the standards of fair compe-
tition for and shall be binding upon every member thereof.

Article II — Definitions

The term " Industry " as used herein — means the manufacture and
the sale by the manufacturers thereof of hack saw blades.

The term " Hack Saw Blade " — means all saws which are more
than six inches in length suitable for the cutting of metal of a
type generally known and recognized in the trade as hack saw
blades.

The term " Member of the Industry " — includes, but without
limitation, any individual, partnership, association, corporation, or
other form of enterprise engaged in the industry either as an em-
ployer or on his or its own behalf.

The term " Basic Code " — means the Basic Code of Fair Compe-
tition for the Fabricated Metal Products Manufacturing and Metal
Finishing and Metal Coating Industry, as approved by the President
on the 2nd day of November, 1933.

The term ' Distributor " — means a purchaser who, in regular
course of business, purchases products of the industry and other
products in like field of distribution for resale generally to persons
other than affiliates.

The term " Consumer " — means a purchaser of the product of the
industry who is not a distributor.

The term "Association " — means the Hack Saw Manufacturers
Association of America, Inc., One Wall Street, New York, N.Y.

The term " President ", "Act " and "Administrator " — means re-
spectively the President of the United States, Title I of the National
Recovery Act, and the Administrator for Industrial Recovery.

(783)
51699—34 12

784

Article III — Organization, Powers and Duties of the Supple-
mentary Code Authority

1. There shall be constituted a Supplementary Code Authority
consisting of three members, who shall be selected within sixty (60)
days from the effective date of this code by a majority vote of the
members of the industry present and entitled to vote, in person or by
proxy, at a meeting called for such purpose.

Pending the selection of the Supplementary Code Authority, the
Code Committee shall be a Temporary Supplementary Code Author-
ity with all the powers, duties and responsibilities herein granted to
the Supplementary Code Authority.

Each member of the industry who, by writing filed with the Sup-
plementary Code Authority, shall assent to this Supplementary Code
and agree to comply with the terms and conditions thereof, shall be
entitled to vote at all meetings for the selection of the Supple-
mentary Code Authority and for the selection of substitute members
thereof.

2. The term of office of each member of the Supplementary Code
Authority shall be at the will of the members of the industry, and
successor or substitute members of the Supplementary Code Authority
shall be selected in the same manner as provided in paragraph 1 of
this Article for the election of the original members of the Supple-
mentary Code Authority.

3. In addition to membership as above provided, there may be
appointed by the Administrator one to three members of the Sup-
plementary Code Authority without vote, who shall be given notice
of all meetings of the Supplementary Code Authority.

4. The Association shall impose no inequitable restrictions on
admission to membership, and shall submit to the Administrator
true copies of its articles of association, by-laws, regulations, and
any amendments when made thereto, together with such information
as to membership, organization and activities as the Administrator
may deem necessary to effectuate the purposes of the Act.

5. In order that the Supplementary Code Authority shall be at
all times 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 Supplementary Code Authority is not truly repre-
sentative or does not in other respects comply with the provisions of
the Act. may require an appropriate modification in the method of
selection of the Supplementary Code Authority.

6. Nothing contained in this Supplementary Code shall constitute
the members of the Supplementary Code Authority partners for
any purpose.

powers and duties

7. The Supplementary Code Authority shall have the following
powers and duties, the exercise of which shall be reported to the
Administrator :

(a) To insure the execution of the provisions of this Supplemen-
tary Code and provide for the compliance by the members of the
industry with the provisions of the Act, subject to rules and
regulations of the Administrator as to compliance procedure.

785

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

(c) To obtain from members of the industry through an impartial
agency such information and reports as are required for the adminis-
tration of this Supplementary Code. No individual reports shall be
disclosed to any other member of the industry or to any other person
except as herein provided but shall be made available to the Admin-
istrator. Nothing herein contained shall preclude full disclosure
to all members of the Supplementary Code Authority as may be
necessary for the examination of complaints and securing compliance
with the provisions of this Supplementary Code.

(d) To use the Association and such other 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 Supplementary Code Authority of its duties or responsi-
bilities under this Supplementary Code, and such trade associations
and agencies so used shall at all times be subject to and comply with
the provisions thereof.

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

(f ) Subject to review by the Administrator to determine the ex-
penses of the administration of this Supplementary Code and to
secure payment by the members of the industry of such expenses
apportioned between them on the basis of volume of sales in dollars,
or on such other basis as shall be equitable.

(g) To recommend to the Administrator further marketing and
fair trade practice provisions to govern members of the industry in
their relations with each other or with other trades or industries, and
to recommend to the Administrator measures for industrial planning,
including stabilization of employment.

(h) The Supplementary Code Authority, subject to the approval
of the Administrator, shall cause to be formulated an accounting
system and method of cost finding and/or estimating capable of use
by all members of the industry. After such system and method
have been formulated, full details concerning them shall be made
available to all members. Thereafter all members shall determine
and/or estimate cost in accordance with the principles of such
methods.

(i) To co-operate with and assist the Basic Code Authority in
administering the Basic Code and in obtaining from members subject
to this Supplementary Code such reports, statistics and other data
as the Basic Code Authority may properly require.

8. If the Administrator shall determine that any action of a code
authority or any agency thereof may be unfair or unjust or contrary
to the public interest, the Administrator may require that such
action be suspended to afford an opportunity for investigation of
the. merits of such action and further consideration by such code
authority or agency pending final action which shall not be effective
unless the Administrator approves or unless he shall fail to dis-
approve after thirty (30) days notice to him of intention to proceed
with such action in its original or modified form.

786

Article IV — Employment Provisions

This industry is a division of the Fabricated Metal Products Man-
ufacturing and Metal Finishing and Metal Coating Industry and
without limitation the wage, hour and labor provisions in Article
III of its basic code as approved by the President November 2, 1933,
including Section 1 of said Article III by which the provisions of
sub-sections (1), (2), and (3) of Section 7 (a) of Title I of the Act
are made conditions of this Supplementary Code, are specifically
incorporated herein and made a part hereof as the wage, hour and
labor provisions of this Supplementary Code.

Article V — Marketing

1. By means of price sheets each member of the industry, within
ten (10) days after this Supplementary Code shall be approved by
the President, shall publish individual prices, terms and conditions
of sale of all products of the industry offered for sale, which prices,
terms and conditions shall be effective forthwith. Each member of
the Industry shall express his prices in the form of discount from
list. All discounts shall be deemed to refer to standard lists on file
with the Association and the trade when approved by the Adminis-
trator, and need not be repeated and set forth at length in published
price sheets provided any member may adopt and publish his own
list to which his discounts shall apply. Such price sheets shall sepa-
rately state (a) Net prices or discounts and terms to distributors;
(b) Net prices or discounts and terms to consumers.

In case a member of the industry shall desire to give different
minimum prices to different sub-divisions of a defined class, then
the price sheets shall clearly describe the subdivision within the
class intended to be covered thereby, and shall clearly set forth the
conditions, if any, under which a stated price or terms will be given.

2. No member of the industry shall sell to any purchaser by any
means whatsoever any product of the industry at a price lower
or at a discount greater or on more favorable terms than set forth
in published price sheets of such member at the time outstanding
and in force under the conditions applicable to such sale therein
set forth.

3. No member of the industry shall publish a price or terms or
continue in effect a price or terms which will result in a purchaser
paying for the goods received less than the cost thereof to the mem-
ber of the industr}' publishing such price sheet.

Nothing in this paragraph shall preclude any member of the
industry from publishing prices below cost in order to meet existing
competition on products of equivalent size, character, quality or
specifications as such competition is shown by price sheets of other
members of the industry at the time outscancling and in effect.
Whenever a member of the industry under the provisions of this
paragraph shall publish a price below cost, he shall simultaneously
file with the Supplementary Code Authority a statement in writing
of the items on his own price sheet which are below cost, and identify
the price sheets and items thereon of any other member or members
of the industry which shall be claimed to form the justification.

787

4. Publication of price sheets shall be in the manner following :
Each member of the industry shall

(a) File a copy of his price sheet with the Supplementary Code
Authority, which price sheet shall be open to inspection by any
interested person;

(b) Mail on the same day copy thereof to all known members
of the industry;

5. Any member of the industry may change prices, terms and/or
conditions of sale, but no change shall be made or become effective
until after publication of a revised price sheet in the manner pro-
vided in paragraph 4 of this Article.

A change contained in the published price sheet of any member
of the industry, which shall reduce a price of such member which
has been in effect for five (5) days, shall be effective five (5) days
after the publication of the revised price sheet and not prior thereto.
The foregoing five (5) day limitation shall not apply to price
reductions by any other members of the industry to the extent
necessary for corresponding effective date to all members.1

6. No sizes shall be shown on published price sheets except sizes
contained in the simplified practice or standard schedules of sizes
as the same now are or hereafter may be modified by action of the
members of the industry subject to disapproval by either the Sup-
plementary Code Authority or the Administrator. Nothing in this
paragraph contained shall preclude the sale of a size not included in
published price sheets, but in case of the sale thereof the same shall
not be sold upon more favorable terms or at a discount from stand-
ard list greater than the discount shown on price sheets for the size
nearest to the non-standard size so sold.

Article VI — Unfair Practices

In place and in substitution of the fair trade practices set forth in
Article V of the Basic Code, the following acts as described shall
constitute unfair methods of competition; and no member of the
industry shall do any act or thing in this article described as an
unfair method of competition :

1. The furnishing of special measurements, the rendering of any
service, or the doing of any act or thing not included in published
prices and terms and conditions which will make the blade deliv-
ered different from or of a value greater than the standard article
offered under published prices and terms and delivered in regular
course thereunder, or which will have the effect of increasing the cost
of the goods sold or to be sold, without charge to cover the in-
creased cost, or the granting to the purchaser of any other general
or specific benefit not granted to all purchasers and included in
published price sheets.

2. Publishing or granting maturity and discount terms more fav-
orable than the following : 30 days net, 2% for cash — 10th proximo.

1 See paragraph 2 of order approving this Code.

788

3. Entering into any contract, accepting any order or rendering
any invoice which includes products other than products of the in-
dustry, unless the price charged or to be charged for the product of
the industry included therein is separately stated and set forth,
provided nothing herein contained shall require the above price
separation on sales of hack saw machines or hack saw frames with
respect to a single blade per machine or per frame when the machine
and blade or the frame and blade are sold as one unit.

4. Entering into a contract or accepting any order which does not
permit shipment within a period of not more than thirty (30) days
from the date of execution of the contract or acceptance of the order,
unless such contract is in writing.

5. Entering into or accepting contracts, orders or commitments
to sell without corresponding commitment on the part of the pur-
chaser to buy a specified quantity at a fixed price.

6. Paying or allowing any commission or benefit to a distributor
in connection with a sale to any other purchaser if the amount
thereof, when deducted from the sale price, shall make the net to
the member of the industry making the sale less than the price per-
mitted to be granted such distributor.

7. Making any payment or allowing any credit or benefit to a
distributor or to any purchaser or prospective purchaser not con-
nected with a sale.

8. Giving notice to any purchaser or prospective purchaser or to
any other member of the industry of 'intention to change prices,
terms and/or conditions of sale.

9. Making any adjustments, allowances, credits or refunds upon
change in published prices, terms and/or conditions to any pur-
chaser for deliveries already made.

10. Promising or allowing protection to a purchaser or prospec-
tive purchaser against changes in prices, terms and/or conditions.

11. Taking in exchange the product of any other member of the
industry from a purchaser thereof, and making any payment or
granting any credit to such purchaser in connection therewith.

12. Making delivery of any product of the industry on memoran-
dum or consignment, except under circumstances to be defined by the
Supplementary Code Authority and approved by the Administrator
where peculiar circumstances of the industry require the practice.

13. Including in or omitting from any invoice any statement so
that the invoice shall not be a true statement of the transaction
between the member of the industry and the purchaser.

14. Pre-dating or post-dating of any invoice or contract of sale.

15. Selling or delivering under standard designation a hack saw
blade manufactured after the effective date of this Supplementary
Code longer, wider or thicker than the standard for the size accord-
ing to standard specifications adopted by the Association and
approved by the Administrator.

16. Selling or delivering a hack saw blade manufactured after the
effective date of this Supplementary Code for which effective stand-
ard specifications shall not be in force, longer, wider, or thicker than
the standard length, width and thickness customarily furnished in
regular course of business, without additional charge sufficient to
cover added cost.

789

17. For the purpose of influencing a sale, making any adjustments,
allowances, credits or refunds arising out of breach of express guar-
antees or representations, except breach of express guarantees against
defects in workmanship and material.

18. Selling for the account and benefit of a consumer through the
medium of a distributor pursuant to prior arrangement or under-
standing with the consumer for the purpose of evading the provi-
sions of this Supplementary Code.

19. Contributing to or paying any part of the expense for custo-
mers' catalogues, printing and furnishing special literature for cata-
logues, or otherwise to distributors, advertising in house organs,
advertising in local papers at the request of customers; but nothing
in the foregoing should be construed as any limitation on general
literature prepared for, and made available to, customers generally,
whether or not the same be in form susceptible of insertion by a dis-
tributor in catalogue or other book assembly, it being understood that
the practice hereby prohibited is the making up or furnishing of
special literature or printed matter for a particular customer so that
the same would be different from that generally furnished.

20. Making refunds, adjustments or allowances to a purchaser
except as necessary in good faith.

21. Selling hack saw blades known in the trade as seconds.

22. Manufacturing hack saw blades from defective, off gauge or
rejected steel sheets or sheets known in the trade as seconds.

23. Making any allowance or deduction from price for sales in
bulk or other than according to standard packing.

24. Sharpening used hack saw blades with or without charge
therefor, or paying any other person for so doing.

25. Giving free samples or making delivery of any product of
the industry except upon a sale thereof. Nothing herein contained
shall preclude the giving of samples necessary for test purposes to
the United States Government or a bureau, board or department
thereof, or not more than two Standard Tungsten hack saw blades
as samples for test purposes to any other person, provided the same
person shall not be given more than two sample blades in a period
of six (6) months.

26. Paying or giving prizes or benefits to salesmen or distributors,
provided that a souvenir or printed matter having the manufacturer's
name or brand permanently affixed, or a character properly classed
as advertising, shall not be considered a prize or benefit.

27. 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 employee, agent or representative of another in rela-
tion to the business of the employer of such employee, the principal
of such agent, or the represented party, without the knowledge of
such employer, principal or party. Nothing in this paragraph shall
be construed to prohibit free and general distribution of articles
commonly used for advertising except so far as such articles are
actually used in commercial bribery as hereinbefore defined.

28. Selling for export at a price less or on terms more favorable
than set forth in published price sheets under conditions therein
stated, when the sale is to a distributor who, as a part of his regular
business, resells hack saw blades in Continental United States, un-

790

less such distributor shall submit to the member of the industry mak-
ing the sale the original order from the purchaser located in the
foreign country for whom the hack saw blades are ordered.

29. Selling hack saw blades having special markings or labels
thereon and/or on the packages or containers therefor without addi-
tional charge to cover the additional cost of such special markings
and/or labels, except under circumstances to be defined by the Supple-
mentary Code Authority and approved by the Administrator where
peculiar circumstances of the industry require the practice without
additional charge to cover the additional cost.

30. Manufacturing and selling unbranded hack saw blades or hack
saw blades containing markings thereon or on the packages or con-
tainers therefor which will mislead or deceive purchasers as to the
origin of manufacture.

31. Making any distinction or difference in price, terms and/or
conditions of sale in excess of the difference in cost incident to spe-
cial marking and/or labeling where the product sold or offered to be
sold is the same except for the name or brand thereon or on the pack-
ages and containers therefor.

32. Giving credit for return of hack saw blades of own manufac-
ture in excess of the price therefor according to price sheet in force
at the time of return, less return freight and all other expenses in-
cident to such return, including repacking and reconditioning, if any.

33. Doing any act or thing by recourse to or through the medium
of a subsidiary or affiliate or exclusive distributor which a member
of the industry is prohibited from himself doing under the provisions
of this Supplementary Code.

Article VII — General

1. When the Supplementary 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 Supplementary
Code, the Supplementary Code Authority 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 mem-
ber 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 product.

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

2. Nothing in Articles V and YI of this Supplementary Code shall
apply to sales between members of the industry, except no sale shall
be made by one member of the industry to another member of
the industry below cost.

3. Nothing in Articles V and YI of this Supplementary Code
shall apply to export sales.

791

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

5. This Supplementary Code, except as to provisions required
by the Act, may be modified and/or amended on the basis of ex-
perience or changes in circumstances, such modifications and/or
amendments to be based upon application to the Administrator by
the Supplementary Code Authority or other representative group
within the industry and such notire and hearing as the Administrator
shall specify, and to become effective as part of this Supplementary
Code on approval of the President, and/or of the Administrator.

6. In case any provision of this Supplementary Code shall impose
unusual or undue hardship on any member of the Industry such
provision may be suspended as to such member by the Supplementary
Code Authority with the approval of the Administrator.

Article VIII — Monopolies

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

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

Article IX — Effective Date

1. This Supplementary Code shall become effective at 12 : 01 A.M.
on the tenth (10th) day after approval of same by the President.

Approved Code No. 84 — Supplement No. 8.
Registry No. 1114-26.

Approved Code No. 244 — Supplement No, 4
SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

CEMENT GUN CONTRACTORS INDUSTRY

As Approved on March 21, 1934

ORDER

Supplementary Code of Fair Competition for the Cement Gun
Contractors Industry

a division of the construction industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, and pursuant to and in full
compliance with the provisions ol Section 5 of Article VIII of Chapter I
of the Code of Fair Competition for the Construction Industry, ap-
proved January 31, 1934, for approval of Chapter V of said Code,
which Chapter V is applicable to the Cement Gun Contractors Divi-
sion of the Construction Industry, and hearings having been held
thereon and the annexed report on said Code, containing findings with
respect thereto, having been made and directed to the President:

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended:
Geo. L. Berry,

Division Administrator.

Washington, D.C.,

March 21, 1934.

(793)

REPORT TO THE PRESIDENT

The President,

The White House.

Sir: This is a report on Chapter V of the Code of Fair Competition
for the Construction Industry, which Chapter is a revision, after
Public Hearings conducted in Washington on September 11, 1933,
and on November 20, 1933, of a Code of Fair Competition for Cement
Gun Contractors.

This Chapter, applicable specifically to the Cement Gun Contrac-
tors Division of the Construction Industry, supplements the basic
Code of Fair Competition for the Construction Industry, described
as Chapter I of such Code, which was approved by you on January
31, 1934. The hearings were conducted in accordance with the pro-
visions of the National Industrial Recovery Act.

THE INDUSTRY

The Cement Gun Contractors are a component and an important
part of the Construction Industry. The Industry is a special one.
doing cement work by a pneumatic method. Most of the employees
require special training. It is an important item in the construction
of and repairs to architectural and engineering structures, such as
buildings, bridges, dams and other types of construction.

PROVISIONS FOR HOURS AND WAGES

The provisions for hours and wages are set out in Chapter I of
the Construction Code, which was approved by you on January 31,
1934, and the same provisions, with certain additional exceptions
beneficial to employees, are applicable, under this Chapter, to the
Cement Gun Contractors Division.

ECONOMIC EFFECT OF THE CODE

The volume of work performed ranged from $7,000,000 in 1928 to
$10,000,000 in 1930. The number of employees ranged from 2,000
in 1928 to 3,000 in 1931. Volume of work performed in 1931 and
1932 was $7,000,000 and $6,000,000 respectively. Employees for
these years numbered 3,000 and 2,000 respectively. It is safe to say,
that with the prohibition of unfair trade practices, and the establish-
ment of minimum rates of pay and maximum hours of work that
more wholesome conditions will take form in this Industry and that
employers, employees, and a part of the public will be benefited.

From the decrease in working hours and the establishment of a
minimum rate of pay, it is expected that employment will be increased
at least twenty-five (25) percent and that the purchasing power of the
employees will be correspondingly increased.

(794)

795

FINDINGS

The Deputy Administrator in his final report to me on Chapter V
of the Code of Fair Competition for the Construction Industry as
modified by the addition thereto of said Chapter V, having found as
herein set forth and on the basis of all the proceedings in this matter:

I find that:

(a) Said Chapter V and said Code of Fair Competition for the Con-
struction Industry, as modified by the addition thereto of said Chapter
V, are well designed to promote the policies and purposes of Title I of
the National Industrial Recovery Act, including removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof and will provide for the general welfare
by promoting the organization of Industry for the purpose of cooper-
ative action among the trade groups, by inducing and maintaining
united action of labor and management under adequate governmental
sanctions and supervision, by eliminating unfair competitive practices,
by promoting the fullest possible utilization of the present productive
capacity of industries, by avoiding undue restriction of production
(except as may be temporarily required), by increasing the consump-
tion of industrial and agricultural products through increasing pur-
chasing power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.

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

(c) Said Chapter V and the Code of Fair Competition for the Con-
struction Industry as modified by the addition thereto of said Chapter
V, as approved, comply in all respects with the pertinent 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 associa-
tion imposes no inequitable restrictions on admission to membership
therein.

(d) Said Chapter V and the Code of Fair Competition for the Con-
struction Industry as modified by the addition thereto of said Chapter
V, are not designed to and will not permit monopolies or monopolistic
practices.

(e) Said Chapter V and the Code of Fair Competition for the Con
struction Industry as modified by the addition thereto of said Chapter
V, are not designed to and will not eliminate or oppress 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
Chapter V and of said Code as modified by the addition thereto of
this Chapter V thereof.

For these reasons, therefore, I have approved said Chapter V of
the Code of Fair Competition of the Construction Industry.
Respectfully,

Hugh S. Johnson,

Administrator.
March 21, 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE CEMENT GUN CONTRACTORS INDUSTRY

A DIVISION OF THE CONSTRUCTION INDUSTRY

Chapter V

Article I — Reference to Provisions of Chapter I

All provisions of Chapter I of this Code, except as herein provided,
apply within this division with the same force and effect as is set
forth herein in full. The provisions of Sections 7 (a) and 10 (b) of
the Act which are set forth in Sections 1 and 6 respectively of Article
VIII, Chapter I of this Code, are specifically incorporated herein by
reference with the same force and effect as if set forth herein in full.

Article II — Definitions

Section 1. The term "Cement Gun Contracting Division" or
"this division" as used herein is defined to mean the business of, the
directing, superintending, coordinating, or executing work which
utilizes the cement gun or similar device to place cementitous mate-
rials involving velocity of dry materials and hydration approximately
at the point of deposit, and preparatory work incidental thereto, and
such branches or subdivisions thereof as may from time to time be
included under the provisions of this Chapter with the approval of
the President.

Section 2. The term " Association" as used herein is defined to
mean the " Cement Gun Contractors' Association."

Section 3. The term "combination bid" is herein defined as any
bid including any work within this division, together with work not
within this division.

Article III — Administration

Section 1. A Divisional Code Authority is hereby constituted to
administer this Code within this division. The Divisional Code
Authority shall consist of seven (7) individuals eligible under the
provisions of subsection (h) of this section, to be selected as follows:

(a) Three (3) individuals shall be appointed from members of the
Association by the Board of Directors of the Association to serve
for a term of one (1) year.

(b) Three (3) individuals shall be initially selected on a fair basis
by the Board of Directors of the Association from members of this
division who are not members of the Association and who are not
responsible thereto, each of the non-members of the Association so
selected to be approved by the Administrator before taking office,
and each to hold office for a term of one (1) year, or until their respec-
tive successors have been selected and approved, by a method of
selection satisfactory to, and approved by, the Administrator.

(706)

797

(c) The seventh (7th) individual, who shall also be representative
of members of this division, shall be selected for a term of one (1)
year by the six (6) members provided for in paragraphs (a) and (b)
of this section, and shall also be approved by the Administrator
before taking office. Any successor shall be selected in a similar
manner.

(d) In the event any vacancy in the membership of the Divisional
Code Authority shall occur, excepting that of the member chosen
pursuant to paragraph (c) hereof, a special meeting to fill the unex-
pired term of such members shall be called. Notice of the time and
place of such election shall be sent by registered mail to all members
of the Industry entitled to make nominations or to vote at such elec-
tion at least forty (40) days in advance of such election. All nomina-
tions for any vacancy to be filled shall be submitted not later than
twenty (20) days before the day of such election, and immediately
upon the time for such nominations being ended, a list of all members
nominated for said vacancy shall be sent by the Divisional Code
Authority to each member of the Industry entitled to vote at such
election. Voting thereat may be in person, by proxy, or by letter
ballot. No more than one representative of each member of the
Industry entitled to vote shall vote at any election.

(e) Each member of the Divisional Code Authority so selected
shall have one (1) vote, and the vote of a majority of said members
shall prevail in determining the actions of the Divisional Code
Authority.

(f) The Divisional Code Authority or its authorized representative
or representatives may attend meetings of any administrative agency
established for any subdivision.

(g) The Divisional Code Authority may 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 rela-
tionships between employers under this Code and employers under
such other codes to the end that such fair trade practices may be
proposed to the Administrator as amendments to this Chapter and
such other Codes.

(h) 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 adminis-
tration. Such reasonable share of the expenses of administration
shall be determined by the Code Authority, subject to review by the
Administrator, on the basis of volume of business and such other
factors as may be deemed equitable.

Article IV — Wages and Hours

Section 1. The following are exempt from the provisions of
Section 2 of Article III of Chapter I of this Code relating to maximum
hours:

(a) Employees engaged in a professional, executive or supervisory
capacity receiving more than thirty-five ($35.00) dollars a week.
Employees engaged in a supervisory capacity are defined as those
persons who perform no manual labor;

798

(b) Watchmen, who may be permitted to work not in excess of
fifty-six (56) hours in any one week and not more than six (6) days
in any seven day period.

Section 2. No employee shall be permitted to work more than
five (5) days in any seven (7) day period. All employees shall be
paid at the rate of at least one and one half (1)0 times the normal
rate for all time worked on Saturdays, Sundays and legal holidays.

Section 3. Employees engaged in emergency work involving
breakdowns or protection of life or property shall be paid at the over-
time rate of at least one and one half {!%) times the normal rate for
all hours worked in excess of the daily or weekly maximum.

Section 4. All wages due shall be payable weekly or semimonthly
in lawful currency, or by negotiable check therefor payable on demand
at par. These wages shall be exempt from any payments therefrom
for pensions, insurance or sick benefits other than those voluntarily
paid by employees. Employers and their agents shall accept no
rebates^ either directly or indirectly on such wages, or give anything
of value or extend favors to any person for the purpose of influencing
rates of wages of their employees.

Article V — Fair Trade Practice Regulations

Section 1. The provisions of this Article (in addition to the provi-
sions of Article VII of Chapter I of this Code) are adopted as rules
of Fair Trade practice, and any violation of said rules shall constitute
an unfair method of competition and a violation of this Code.

Section 2. The Divisional Code Authority shall cause to be for-
mulated an accounting system and methods of cost finding and
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 or estimate
costs in accordance with the principles of such methods.

Section 3. No member of tins division shall offer or agree to sell
labor, materials, or services below the estimated cost as provided for
in Sections 2 and 4 of this Article.

Section 4. Until such time as such a uniform system of accounting
shall have been determined and approved by the Administrator,
estimated cost shall be the sum of the following items of expected
cost for the job in question:

(a) Labor and supervision at the job site.

(b) All materials to be used in the contract.

(d) Railroad fare (or equal) and/or hotel expenses, if chargeable
to the job.

(e) Municipal permits, if any.

(f) The cost of public liability and workmen's compensation insur-
ance and maintenance and surety bonds.

(g) Maintenance, depreciation, repairs and rentals of tools and
equipment used on the individual contract in accordance with income
tax schedules.

(h) Power.

(i) Any other direct expense properly applicable to the individual
contract.

799

(j) Allowance of not less than twelve (12) percent ol the sum of
items (a) to (i) inclusive as above for overhead.

Section 5. Every member of this division shall for a period of
one (1) year after making a bid, maintain and keep on file his original
estimate supporting his bid or contract.

Section 6. No member of this division shall be party to the unfair
practice of " bid-peddling" or " bid-shopping " as defined in Chapter I
hereof.

Section 7. In order to provide a check on the accuracy and fair-
ness of estimates, any member of this division submitting a proposal
on any job whether competitive or not amounting to two hundred
and fifty dollars ($250.00) or more, shall simultaneously with the
submission of his bid, file copies of his proposal or proposals and all
revisions thereof, with some depository designated by the Divisional
Code Authority, or its authorized representative, and subject to the
approval of the Construction Code Authority; the same to be kept
sealed and confidential until after the letting of the contract, following
which the successful bidder's proposal may be disclosed to all bidders.

Section 8. In the case of combination bids, or revisions thereof,
the combination bid shall be the aggregate of said separate and
distinct bids.

Section 9. Each bid, filed in accordance with Sections 7 and 8 of
this Article shall be accompanied by a fee of one dollar ($1.00). The
Divisional Code Authority shall use funds so received to pay the
expenses of depositing such bids and for other proper expenses in the
administration of this Code, and shall keep account of the receipts
and expenditures, the same to be open to the Administrator or his
representatives and subject to his approval.

Section 10. Upon request of any bidder a committee, which com-
mittee shall have at least one member, who is a member of the Asso-
ciation, and one member who is not a member of the Association,
shall be appointed by the Divisional Code Authority or its authorized
representative, and it shall be empowered to investigate any suc-
cessful bidder's bid to determine whether any provisions of this Code
have been violated in such bid.

Section 11. In the event such committee shall find the rules of
fair competition have been violated, the violation shall be reported
to the Divisional Code Authority for such action as it deems proper
in accordance with this Code, including, in proper cases, with the
approval of the Administrator, report to the Federal District Attorney
or the Federal Trade Commission for appropriate action.

Section 12. No member of this division shall make any secret
payment, or allowance of rebates, refunds, commissions, or unearned
discounts, whether in the form of money or otherwise; or extend to
certain purchasers or clients, special services or privileges, not
extended to all purchasers or clients under like terms and conditions.

Section 13. No member of this division shall make, cause to be
made, or publish, any material statement which is false or inaccurate
concerning the work, prices, values, credit terms, policies or services
of a competitor.

Section 14. 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 actions of any employee, agent or
representative of another in relation to the business of the employer

51699—34 13

800

of such employee, the principal of such agent or the represented
party, without the knowledge of such employer, principal or party.
Commercial bribery provisions shall not be construed to prohibit
free and general distribution of articles commonly used for adver-
tising except so far as such articles are actually used for commercial
bribery as herein above defined.

Section 15. No member of this division shall use any method to
find out in advance of the opening of bids any details of a bid sub-
mitted by any other member.

Article VI — General Labor Provisions

Section 1. Prison Labor. — Employers shall not employ prison
labor in the execution of work.

Section 2. Posting. — Within ten (10) days after the approval of
this Code, all employers subject to its conditions shall post in a con-
spicuous place in their offices or other established places of business
complete copies of Chapter I — General Provisions for the Construction
Industry and of this Chapter.

Section 3. Standards for Safety and Health. — 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 Divisional Code
Authority to the Administrator within sixty (60) days after the
effective date of this Chapter.

Section 4. Evasion Through Reemployment. — 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 5. Contracting Labor Services. — No member of tins divi-
sion shall directly or indirectly sublet to any employee or laborer, the
labor services required by any contract secured by such member.

In no case shall a member of this division avoid or evade the labor
provisions of this Chapter by contracting his work to any person or
persons subject to labor provisions less stringent than those provided
in this Chapter.

Section 6. Minimum Age. — No person under eighteen (18) years
of age shall be employed in the industry.

Section 7. Transportation, — All Cement Gun Contractors shall
pay transportation charges and other expenses incurred by Nozzlemen
already in their employ while traveling in pursuance to their em-
ployment.

Article VII — Payments

Section 1. A Cement Gun Contractor shall demand and insist
upon receiving payments as they may become due, in lawful money
of the United States or its equivalent as provided by the contract.
In no case shall a contract be accepted which specifies that payments
will become due, as, if and when moneys are received from other
sources.

Section 2. Each contract must specify that interest shall accrue
on all overdue payments at the legal rate, and in no case shall this
interest be rebated or any other concessions granted. Bona fide
disputes concerning the amount due under a contract may be settled

801

or adjusted in order to avoid or discontinue litigation by granting a
reasonable concession provided such concession is approved by the
Divisional Code Authority.

Section 3. Members of this division shall submit monthly to the
Divisional Code Authority the names and addresses of all parties with
whom they are transacting business, who have become delinquent in
contract payments for a period of more than sixty (60) days. The
Divisional Code Authority shall transmit this information within
one week after its reception, to other members of this division in
order to protect them against similar delinquencies.

Section 4. No member of this division shall enter into contracts
unless these contracts stipulate that, where final payment contains
provisions pertaining to amounts of money retained for purposes other
than for maintenance such retained moneys shall be paid to said
member of the division within thirty (30) days after the acceptance
of the work contracted for by said member of the division.

Section 5. Members of this division shall be ready and willing to
settle disputed matters promptly. Where arbitration as a method of
settling disputed matters is agreed upon, the rules of procedure as
established by the American Arbitration Association shall govern,
except as otherwise required by law or contract. Payment, exceeding
that sufficient to cover the amount in dispute, shall not be withheld
from the parties affected.

Article VIII — Modification

Subject to the provisions of Section 2 (b) of Article IV, (b) of
Chapter I of this Code, the provisions of this Chapter except as to
provisions required by the Act, may be modified on the basis of expe-
rience or changes in circumstances, such modifications to be based
upon application to the Administrator and such notice and hearing
as he shall specify, and to become effective on the approval of the
President. Any such application may be made to the Divisional Code
Authority.

Article IX — Review of Acts of Code Authorities

If the Administrator shall determine that any action of the Divi-
sional 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 the
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 (30) days' notice to him of intention to
proceed with such action in its original or modified form.

Article X — Effective Date

This Code (Chapter I and this Chapter) shall become effective in
this division on the fourteenth (14th) day after the approval of this
Chapter by the President.

Approved Code No. 244 — Supplement No. 4.
Registry No. 1616-2-22.

Approved Code No. 244 — Supplement No. 3
SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

ELEVATOR MANUFACTURING INDUSTRY

As Approved on March 21, 1934

ORDER

Supplementary Code of Fair Competition for the Elevator
Manufacturing Industry

a division of the construction 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, and pursuant to and in full
compliance with the provisions of Section 5 of Article VIII of Chapter
I of the Code of Fair Competition for the Construction Industry,
approved January 31, 1934, for approval of Chapter IV of said Code,
which Chapter IV is applicable to the Elevator Manufacturing
Division of the Construction Industry, and hearings having been
held thereon and the annexed report on said Code, containing findings
with respect thereto, having been made and directed to the President:

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended:

Geo. L. Berry,

Division Administrator.

Washington, D.C.,

March 21, 1934.

(803)

REPORT TO THE PRESIDENT

The President,

The White House.

Sir: This is a report on the Elevator Manufacturing Chapter of the
Code of Fair Competition for the Construction Industry which is
described as Chapter I and which was approved by you on January
31, 1934.

This Chapter is a revision after a public hearing conducted in Wash-
ington on November 2, 1933, in accordance with the provisions of the
National Industrial Recovery Act. This Chapter amplifies Chapter
I, but applies specifically to the Elevator Manufacturing Division of
the Construction Industry.

PROVISIONS FOR HOURS AND WAGES

With very minor exceptions, the hours and wages set forth in Chap-
ter I of the Construction Code as approved by you on January 31,
1934^ are applicable to this Code.

ECONOMIC EFFECT OF THE CODE

According to the statistical analysis of the Division of Research
and Planning, the total production of this Division of the Construc-
tion Industry has decreased from $103,500,000 in 1929 to $21,200,000
in 1933. Employment has fallen from 20,000 in 1929 to 11,000 in
1933.

It is reasonable to predict that the establishment of uniform rates
of pay and hours of work and the prohibition of unfair trade practices
will be beneficial to this Industry as well as to the employees and the
consumer.

FINDINGS

The Assistant Deputy Administrator in his final report to me on
said Elevator Manufacturing Chapter of the Code of Fair Competi-
tion for the Construction Industry, having found as herein set forth
and on the basis of all the proceedings in this matter;

I find that:

(a) Said Elevator Manufacturing Chapter and said Code of Fair
Competition for the Construction Industry, as supplemented by said
Elevator Manufacturing Chapter, are well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate and
foreign commerce which tend to diminish the amount thereof and will
provide for the general welfare by promoting the organization of
industry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible

(8(H)

805

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 agricultural
products through increasing purchasing power, by reducing and re-
lieving unemployment, by improving standards of labor, and by other-
wise 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) Said Elevator Manufacturing Chapter and the Code of Fair
Competition for the Construction Industry, as supplemented by said
Elevator Manufacturing Chapter, as approved comply in all respects
with the pertinent provisions of said Title of said Act, including with-
out limitation Subsection (a) of Section 3, Subsection (a) of Section 7,
and Subsection (b) of Section 10 thereof; and that the applicant asso-
ciation is an industrial association truly representative of the afore-
said Industry; and that said Association imposes no inequitable re-
strictions on admission to membership therein.

(d) Said Elevator Manufacturing Chapter and the Code of Fair
Competition for the Construction Industry, as supplemented by
said Elevator Manufacturing Chapter are not designed to and will
not permit monopolies or monopolistic practices.

(e) Said Elevator Manufacturing Chapter and the Code of Fair
Competition for the Construction Industry, as supplemented by said
Elevator Manufacturing Chapter, are not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate 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
Elevator Manufacturing Chapter and of said Code, as supplemented
by this Elevator Manufacturing Chapter thereof.

For these reasons, therefore, I have approved said Elevator
Manufacturing Chapter of the Code of Fair Competition of the
Construction Industry.
Respectfully,

Hugh S. Johnson,

Administrator.
March 21, 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE ELEVATOR MANUFACTURING INDUSTRY

A DIVISION OF THE CONSTRUCTION INDUSTRY

Chapter IV
Article I — Definitions

Section 1. The term "Elevator Manufacturing Division" or "this
Division" means and includes the designing and manufacturing for
sale, and the selling, and the installing, repairing, re-roping and serv-
icing for hire of all types of passenger and freight elevators, escalators,
moving stairways, dumbwaiters, stage and console lifts, with all appli-
ances used in connection therewith.

Section 2. The term "Association" as used herein is defined to
mean the "National Elevator Manufacturing Industry", a trade as-
sociation of members of this Division.

Section 3. The term "Member of the Code" includes any mem-
ber of this Division signifying assent to this Code as it pertains to
this Division.

Section 4. The term "Apprentice" as used herein refers to an
employee between the ages of sixteen (16) and twenty-one (21) with
whom the empk^er has a definite apprenticeship agreement for a
period of not over two (2) years.

Section 5. The term "Learner" as used herein is defined to mean
an unskilled employee without previous experience in this Industry
with whom the employer has a definite agreement to qualify such
employee as a mechanic and whose period of employment in this
class is limited to one (1) year, at the expiration of which such em-
ployee shall receive the full mechanic's rate of pay.

Section 6. The term "Shop labor" is defined to mean labor
performed in the factory in the manufacture of the products of the
Industry, or in the labor operations directly incidental thereto.

Section 7. The term "Field labor" is defined to mean labor per-
formed in the installing, repairing, re-roping and servicing of the
several types of equipment described in Section 1.

Article II — Hours, Wages and Conditions of Employment

Section 1. Notwithstanding the provisions of Section 2 B of
Article III of Chapter I hereof, the following provisions shall apply
to the following classes of employees in this Division:

(A) No employee engaged in shop labor shall be permitted to work
in excess of eight (8) hours in any day or forty (40) hours or six (6)
days in any week, and no such employee shall be paid at less than
forty (40) cents per hour.

(B) The minimum rates of pay established by this Section are to
be maintained regardless of whether the employee is compensated
on the basis of a time rate, piece-work or other basis.

(806)

807

(a) Shop executive, administrative or supervisory employees whose
fixed salaries are in excess of thirty-five dollars ($35.00) per week.
Supervisory employees are defined as those who perform no manual
labor.

(b) Employees engaged in shop emergency repairs required for the
protection of life or property who shall be paid at the rate of time and
one half (1%) for all hours in excess of the maximum established in
this Section.

(c) Shop firemen who shall not be permitted to work in excess of
eight (8) hours in any day or forty-eight (48) hours in any week, or
six (6) days in any week.

(d) Shop watchmen who shall not be permitted to work in excess
of fifty-six (56) hours in any week or six (6) days in any week.

(D) Female employees performing substantially the same work as
male- employees shall receive the same rate of pay as male employees.

Section 2. Within ten (10) days of the approval of this Chapter,
all employers subject to its conditions shall post in a conspicuous place
in their respective factories or shops complete copies of Chapter I
(General Provisions for the Construction Industry) and of this
Chapter of this Code.

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

Section 4. All employers shall make payment of all wages due
in lawful currency or by negotiable check therefor, payable on demand
at par. Wages shall be payable at the end of each weekly period.
Wages shall be exempt from any payment for pensions, insurance or
sick benefits other than those voluntarily authorized by employees.
Employers or their agents shall not accept, directly or indirectly,
rebates on such wages for 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 requiring 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 or to persons employed in clerical or office
work whose compensation, however, shall be payable at least semi-
monthly.

Section 5. Every employer shall make reasonable provision for the
safety and health of his employees at the place and during the hours
of their employment. Standards for safety and health shall be sub-
mitted by the Divisional Code Authority to the Administrator within
three (3) months after the effective date of this Chapter.

808

Article III — Administration

Section 1 . To further effectuate the policies of the Act, a Divisional
Code Authority is hereby constituted to administer this Code within
this Division.

The Divisional Code Authority shall consist of six (6) members,
who have assented to this Code, five (5) members to be selected,
either prior to or not later than twenty (20) days after the approval
of this Chapter, by the Board of Directors of the Association from its
membership, and one additional person to be selected by the Admin-
istrator from and to represent, non-members of the Association who
are members of the Division. The five (5) members selected by the
Board of Directors from members of the Association shall serve for
terms of one (1) year each and the Board of Directors shall annually
thereafter select their successors. The member representative of non-
members of the Association shall serve for a term of one (1) year.
At that time the non-members of the Association may elect his succes-
sor, which successor and the method of his selection shall be satis-
factory to and approved by the Administrator. In the event no
successor is so chosen, the Administrator shall appoint a successor.

Section 2. The Administrative Members and the Administrator
shall be given five (5) days' notice of, and may sit at, all meetings of
the Divisional Code Authority.

Section 3. Accounting System. The Divisional 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 this
Division. After such system and methods have been formulated by
the Divisional Code Authority and approved by the Administrator,
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 IV — Trade Practice Rules

General Definition: For all purposes of the Code the acts described
in this article shall constitute unfair practices. Any member of this
Division who shall directly, or indirectly through any officer, employee,
agent, or representative, knowingly use, employ, or permit to be em-
ployed, such unfair practices shall be guilty of a violation of the Code.

Rule 1. Interference with Contracts. No member of this Division
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.

Rule 2. Defamation of Competitors. No member of this Division
shall defame a competitor or competitors by words or acts which
falsely disparage in any material particular his business integrity, his
ability to perform his contracts or fill his orders, his credit standing
or the grade, quality, or prices of his goods.

Rule 3. Secret Rebates. No member of this Division shall offer
or make any secret or discriminatory 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 offer or extend to any customer any secret

809

or discriminatory service or privilege for the purpose of influencing
a sale.

Rule 4. Commercial Bribery. No member of this Division shall
give, permit to be given, or directly offer to give, anything of value
for the purpose of influencing or rewarding the action of any employee,,
agent, or representative of another in relation to the business of the
employer of such employee, the principal of such agent or the repre-
sented party, without the knowledge of such employer, principal, or
party. Commercial bribery provisions shall not be construed to
prohibit free and general distribution of articles commonly used for
advertising except so far as such articles are actually used for com-
mercial bribery as hereinabove defined.

Rule 5. Threats of Law Suits. No member of this Division 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.

Rule 6. Inaccurate References to Competitors, etc. No member
of this Division shall publish advertising which refers inaccurately in
any material particular to any competitors or their goods, prices,
values, credit terms, policies, or services.

Rule 7. 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.

Article V — Reference to Provisions of Chapter I

The provisions of Sections 7 (a) and 10 (b) of the Act, which are set
forth in Sections 1 and 6 respectively of Article VIII of Chapter I of
this Code, are specifically incorporated herein by reference with the
same force and effect as if set forth herein in full; all other provisions
of Chapter I of this Code, except as herein provided, apply within this
Division with the same force and effect as if set forth herein in full.

Article VI — Review of Acts of Divisional Code Authority

If the Administrator shall determine that any action of the Divi-
sional 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 the
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- (30) days' notice to him of intention to
proceed with such action in its original or modified form.

Article VII — Modification

Subject to the provisions of Section 2, (c) of Article IV, B, of
Chapter I of this Code, the provisions of this Chapter 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 his approval.

810
Article VIII — Effective Date

This Chapter shall become effective within this Division on the
tenth (10th) day after its approval by the President.

Approved Code No. 244— Supplement No. 3.
Registry No. 1311-01.

Approved Code No. 84 — Supplement No. 9
SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

FORGED TOOL MANUFACTURING INDUSTRY

As Approved on March 24, 1934

ORDER

Approving Supplementary Code of Fair Competition for the
Forged Tool Manufacturing Industry

a division of the fabricated metal products manufacturing and
metal finishing and metal coating industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, and in accordance with the
provisions of Section I of Article VI of the Basic Code for the Fab-
ricated Metal Products Manufacturing and Metal Finishing and
Metal Coating Industry, approved November 2, 1933, for approval
of a Supplementary Code of Fair Competition for the Forged Tool
Manufacturing Industry, and hearing having been duly held thereon ;
and the annexed report on said Supplementary Code, containing
findings with respect thereto, having been made and directed to the
President :

NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery
pursuant to authority 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 Supplementary Code complies
in all respects with the pertinent provisions and will promote the
policy and purposes of said Title of said Act; and do hereby order
that said Supplementary Code of Fair Competition be and it is here-
by approved ; provided, however, that the provisions of Article VII,
Paragraph (a), 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 Supplementary Code or

(811)

812

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 U, 1934.

REPORT TO THE PRESIDENT

The President,

The White House.
Sir: This is a report on the Supplementary Code of Fair Com-
petition for the Forged Tool Manufacturing Industry, a division of
the Fabricated Metal Products Manufacturing and Metal Finishing
and Metal Coating Industry, the hearing having been conducted
thereon in Washington, D.C., February 16, 1934, in accordance with
the provisions of Title I of the National Industrial Recovery Act.

GENERAL STATEMENT

The Forged Tool Manufacturing Industry, being truly representa-
tive of this division of the Fabricated Metal Products Manufactur-
ing and Metal Finishing and Metal Coating Industry, has elected to
avail itself of the option of submitting a Supplementary Code of Fair
Competition, as provided for in Section 1 of Article VI of the Basic
Code, for the Fabricated Metal Products Manufacturing and Metal
Finishing and Metal Coating Industry approved by you on the
second day of November, 1933.

RESUME OF THE CODE

Article I states the purpose of the Supplementary Code.

Article II accurately defines specific terms employed in the Sup-
plementary Code.

Article IV establishes a Supplementary Code Authority consisting
of four (4) members to be elected by the members of the Industry
at a meeting called by the Temporary Supplementary Code Author-
ity, and gives the Administrator the authority to appoint one addi-
tional member without vote and provides machinery for obtaining
statistics and the administration of the Supplementary Code.

Article V provides for an accounting system and methods of cost
finding and/or estimating.

Article VI provides for determining the lowest reasonable cost of
the products of this Industry in periods of emergency.

Article VII provides methods of setting up and revising price lists,
and for investigation of prices on the initiative of the Supplementary
Code Authority or on the complaint of a member of the Industry.

Article VIII sets forth the unfair trade practices of this Supple-
mentary Code which has been especially designed to offset unfair
competition in this division of the Industry.

(813)

814

Article IX provides against monopolies and monopolistic practices.

Article X contains the mandatory provisions contained in Section
10 (b) and also provides for the submission of proposed amendments
to the Supplementary Code.

Article XI recognizes that price increases be limited to actual
additional increase in the seller's costs.

Article XII states the effective date of this Supplementary Code.

FINDINGS

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

I find that :

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

(b) Said Industry normally employs not more than 50.000 em-
ployees; and is not classified by me as a major industry.

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

(d) The Supplementary Code is not designed to and will not per-
mit monopolies or monopolistic practices.

(e) The Supplementary Code is not designed to and will not elim-
inate or oppress small enterprises and will not operate to discrim-
inate against them.

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

For these reasons, therefore, I have approved this Supplementary
Code, with a 60 day stay of the provisions prescribing a waiting
period between the filing and effective date of revised price lists.
Respectfully,

Hugh S. Johnson,

Administrator.
March 24, 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE FORGED TOOL MANUFACTURING INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY

Article I — Purposes

To effectuate the policies of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Supplemen-
tary Code of Fair Competition for the Forged Tool Manufacturing
Industry. Pursuant to Article VI of the Basic Code of Fair Com-
petition for the Fabricated Metal Products Manufacturing and
Metal Finishing and Metal Coating Industry, approved by the
President of the United States on the second day of November, 1933,
and upon approval by the President of the United States, the Pro-
visions of the Supplementary Code shall be the standard of Fair
Competition for and shall be binding upon every member thereof.

Article II — Definitions

Section 1. The term " Forged Tool Manufacturing Industry ",
hereafter referred to as the Industry, is defined to mean the manu-
facture for sale in whole or substantial part of Forged Hand Tool
products, such as picks, mattocks, heavy eye hoes, crow, and other
pry and digging bars, woodchoppers' wedges, woodchoppers' mauls,
heavy hammers, sledges, and miscellaneous railroad track hand tools,
track chisels, track wrenches, anvil tools and blacksmith tongs.

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 anyone
by whom any such employee is compensated or employed.

Section 4. The term " member of the Industry ", as used herein
includes, but without limitation, any individual, partnership, asso-
ciation, corporation or other form of enterprise • engaged in the
Industry either as an employer or on his or its own behalf.

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

Section 6. The term " Basic Code ", as used herein is defined to
mean the Basic Code of Fair Competition for the Fabricated Metal
Products Manufacturing and Metal Finishing and Metal1 Coating
Industry as approved by the President of the United States on the
second of November, 1933.

(815)
51699 — 34 14

816

Section 7. The term " Supplementary Code Authority ", as used
herein means the agency which is to administer this Supplementary
Code as hereinafter provided.

Section 8. The term " Society " is defined to mean the Forged
Tool Society or its successor.

Section 9. The term " Federation ", as used herein is defined to
mean the Fabricated Metal Products Federation or its successor.

Section 10. The term " Secretary " is defined to mean the Secre-
tary of the above named Society, or its successor.

Article III — Employment Provisions

This Industry is a division of the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry,
and without limitation the wage, hour and labor provisions in Article
III of its Basic Code as approved by the President November 2,
1933, including Section 1 of said Article III by which the provi-
sions of Sub-sections (1), (2) and (3) of Section 7 (a) of Title I
of the Act are made conditions of the Code, are specifically incor-
porated herein and made a part hereof as the wage, hour and labor
provisions of this Supplementary Code.

Article IV — Organization and Administration

Section 1. During the period not to exceed sixty (60) days fol-
lowing the effective date, the Supplementary Code Committee of
the Industry shall constitute a temporary Supplementary Code
Authority until the Supplementary Code Authority is elected. There
shall be constituted within the sixty-day period a Supplementary
Code Authority consisting of four (4) members to be elected by the
members of the Industry, at a meeting called by the Temporary
Supplementary Code Authority, upon ten days' notice sent by regis-
tered mail to all known members of the Industry, who may vote
either in person or by proxy. The members of the Supplementary
Code Authority first elected shall serve until the following annual
meeting of the Society, and thereafter, members of the Supplemen-
tary Code Authority shall be elected at each annual meeting of the
Society to serve until the following annual meeting. The members
of the Supplementary Code Authority shall be elected in the follow-
ing manner :

(a) One (1) member who shall be a member of the Industry by
a majority vote of all members of the Industry present in person
or by proxy, each membei to have one vote.

(b) One (1) member who is not a member of the Society by a
majority vote of all known members of the Industry who are non-
members of the Society. Provided, however, that if the known
members of the Industry who are not members of the Society, shall
fail to so elect a member from among their number, then in that case,
the members of the Society, each member having one vote, shall select
two members, neither of which is a member of the Society and certify
their names to the Administrator, who wTill select one only of the
two so elected, to be a member of the Supplementary Code Authority.

(c) Two (2) members by fifty-one percent (51%) vote of mem-
bers of the Society, present in person or by proxy, weighted on the

817

basis of one vote for each member and one additional vote for each
$5,000. of annual sales in the previous calendar year reported to the
temporary Supplementary Code Authority; provided, however, that
no one member may cast more than 33% percent of total number of
votes cast.

A vacancy in the membership of the Supplementary Code Author-
ity may be filled by a majority vote of the remaining members of
the Supplementary Code Authority (provided, however, that the
right to vote, as set forth above, shall be subject to the limitations
provided in Section 4 of this Article). In addition thereto the Ad-
ministrator may appoint one member without vote to serve on the
Supplementary Code Authority who shall, together with the Admin-
istrator, be given notice of and may sit at all meetings of the Supple-
mentary Code Authority.

Section 2. Any Society directly or indirectly participating in the
selection or activities of the Supplementary Code Authority shall
(1) impose no inequitable restrictions on membership, and (2) sub-
mit to the Administrator true copies of its Articles of Association,
By-Laws, Regulations and any amendments when made thereto,
together with such other information as to membership, organization
and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.

Section 3. In order that the Supplementary Code Authority shall,
at all times, be truly representative of the Industry and in other
respects comply with the provisions of the Act, the Administrator
may prescribe such hearings as he may deem proper ; and, thereafter,
if he shall find that the Supplementary Code Authority is not truly
representative or does not in other respects comply with the provi-
sions of the Act, may require removal of any or all of the members
thereof and may make an appropriate modification or modifications
in the method of selection of the Supplementary Code Authority.

Section 4. All members of the Industry are subject to the juris-
diction of this Supplementary Code; and all members of the Indus-
try shall be entitled to participate in and share the benefits of the
Supplementary Code Authority ; shall be entitled to vote as provided
in Section 1 of this Article, and shall pay their reasonable share of
the expenses of the Administration of this Supplementary Code, such
reasonable share to be determined by the Supplementary Code Au-
thority, subject to review by the Administrator on the basis of vol-
ume of business and/or such other factors as may be deemed equitable
by the Supplementary Code Authority.

Section 5. Nothing contained in the Supplementary Code shall
constitute the members of the Supplementary Code Authority
partners for any purpose.

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

(a) To insure the execution of the provisions of this Supple-
mentary Code and provide for the compliance of the Industry with
the provisions of the Act.

(b) It shall have power to use such trade associations and other
agencies as it deems necessary provided that nothing herein shall
relieve the Supplementary Code Authority of its duties or responsi-
bilities under this Supplementary Code.

818

(c) To adopt such by-laws, rules and regulations as are necessary
for its procedure and for the administration of this Supplementary
Code.

(d) To obtain from members of the Industry such information
and reports as are required for the administration of the Supple-
mentary Code, which information and reports shall be submitted by
the members to such administrative and/or government agencies as
the Administrator may designate; provided that nothing in the
Supplementary Code shall relieve any member of the Industry of
any existing obligations to furnish reports to any government agency.
All individual and private information shall be submitted to the
Secretary, or other appointee of the Supplementary Code Authority
and shall be held in strict confidence and not disclosed to any com-
petitor or other persons outside the Secretary's office, without the
permission of the member of the Industry involved.

Provided, however, that such information may be disclosed to any
authorized governmental agency as directed by the Administrator.

Provided, further, that when necessary in the hearing of a com-
plaint, information, resulting from an investigation, may be dis-
closed to the Supplementary Code Authority or its appointee, and

Provided, further, that information pertaining to the reporting
of prices, terms and conditions may be disclosed to effectuate the
purposes of this Supplementary Code.

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

(f) To appoint a trade practice committee which shall meet with
the trade practice committee appointed under such other Code or
Codes as may be related to the Industry for the purpose of formu-
lating fair trade practices to govern the relationship between pro-
duction and distribution employees under this Supplementary Code,
and under such others to the end that such fair trade practices may
be proposed to the Administrator as amendments to this Supple-
mentary Code and such other Codes.

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

(h) To cooperate with the Administrator in regulating the use
of any N.R.A. insignia solely by those members of the Industry
who have assented to, and are complying with, this Supplementary
Code.

(i) If the Administrator shall determine that any action of the
Supplementary Code Authority or any agency thereof may be un-
fair or unjust or contrary to the public interest, the Administrator
may, after reasonable endeavor to confer with the Supplementary
Code Authority, require that such action be suspended to afford an
opportunity for investigation of the merits of such action and further
consideration by the Supplementary Code Authority or agency pend-
ing 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.

819

Article V — Accounting and Costing

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 as shall full details of all changes therein as
and when made. Before becoming effective the cost system and
methods of cost finding and estimating and all changes therein shall
be filed with the Administrator subject to his disapproval within
thirty (30) days. Thereafter all members shall determine and/or
estimate costs in accordance therewith.

Article VI — Selling Below Cost

When and if, the Supplementary Code Authority determines that
an emergency exists in the 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 Supplementary
Code, the Supplementary Code Authority 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
Administration may require. 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 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 Supplementary
Code Authority, upon its own initiative or upon the request of any
interested party, shall cause the determination to be reviewed.

However, dropped lines or seconds or inventories which must be
converted into cash to meet emergency needs may be disposed of
by any member of the Industry, at any price and on any terms and
conditions, but only if such member of the Industry has filed with
the Supplementary Code Authority a statement in writing, setting
forth the fact of, and reasons for, such proposed disposal.

Article VII — Price Lists

(a) If the Supplementary Code Authority determines that it has
been the generally recognized practice in the Industry to sell certain
products on the basis of net price lists, or price lists and discount
sheets, each member of the Industry manufacturing and selling such
products shall, within ten (10) days after notice of such determi-
nation, file with the Supplementary Code Authority a net price list,
or price list and discount sheet, in such form and for such products
as the Supplementary Code Authority may prescribe, and the Sup-
plementary Code Authority shall immediately send copies thereof
to all known manufacturers of such products, and such lists shall be
available to all interested parties. Revised price lists and/or dis-
count sheets and/or all other conditions of sale may be filed from
time to time thereafter with the Supplementary Code Authority by

820

any member of the Industry, to become effective five (5) days after
actual receipt by the Supplementary Code Authority. Copies of
such revised lists and/or discount sheets and/or all other conditions
of sale, with notice of the effective date thereof, shall be immediately
sent to all members of the Industry, and shall be available to all in-
terested parties; and any member of the Industry may file, if he so
desires, revisions of his price list and/or discount sheets and/or con-
ditions of sale, which shall become effective at the date when the
revised list first filed becomes effective, provided that he shall not
establish prices lower, nor discounts greater, nor conditions of sale
more favorable than those contained in the revised list first filed.1

(b) If the Supplementary Code Authority shall hereafter deter-
mine that in any branch or subdivision of the industry, not selling its
products on the basis of price lists, with or without discount sheets,
the distribution or marketing conditions in said branch or subdivi-
sion are the same as, or similar to, the distribution and marketing
conditions in a branch or subdivision of the industry where the fil-
ing of price lists, with or without discount sheets and other fixed con-
ditions of sale, has been required, and that the use of price lists, with
or without discount sheets and with fixed conditions of sale, should
be put into effect in such branch or subdivision, then each member of
the Industry manufacturing such product or products shall, within
twenty (20) days after notice of such determination, file with the
Supplementary Code Authority net price lists, or price lists with
discount sheets, containing all fixed conditions of sale, in such form
as the Supplementary Code Authority may prescribe, and such lists
shall be immediately sent to all members of the Industry manufac-
turing such product or products, and shall be made available to all
interested parties and may be revised from time to time as provided
in Paragraph (a) hereof:

Provided, however, that the Supplementary Code Authority shall
make no determination to place any product of the industry on a
price list basis, unless two-thirds of the members who are at that
time engaged in manufacturing such products shall affirmatively con-
sent that such determination be made.

(c) The Supplementary Code Authority shall have power, on
its own initiative, or on the complaint of any member of the indus-
try to investigate any price or the terms of sale and payment for any
product shown in any price list and/or discount sheet filed with the
Supplementary Code Authority by any member of the Industry.

Each member of the Industry shall furnish the Supplementary
Code Authority for distribution with such number of copies of his
price lists and/or discount sheets as Supplementary Code Authority
may prescribe.

(d) Xo member of the Industry shall sell, directly or indirectly,
by any means whatsoever, any product of the Industry covered by
provisions of this Article VI at a price or at discounts, or on other
conditions of sale different from those provided in his own current
net price lists, or price lists and discount sheets.

1 See paragraph 2 of order approving this Code.

821
Article VIII — Unfair Trade Practices

In addition to the Unfair Trade Practices covered by Article V
of the Basic Code, for all purposes of this Supplementary Code the
following described acts shall constitute unfair practices. Any
member of the Industry who shall directly or indirectly through any
officer, employee, agent or representative use or employ any of such
unfair practices shall be guilty of a violation of this Supplementarv
Code.

Rule 1. Branding. — Failure on the part of a member of the In-
dustry to properly brand or identify his products with his name or
his trademark, or other means of identification.

Rule 2. Simplification and Standardization of Products. — The
Supplementary Code Authority shall make studies for the simplifi-
cation of products of the Industry, the elimination of unnecessary or
infrequently demanded sizes or types and for the establishment of
dimensional standards in cooperation with the Bureau of Standards
of the United States Department of Commerce with the view to their
recommendations for adoption by the Industry. This study shall be
completed within the period of three months from the effective date
of this Supplementary Code. Such recommendations of the Supple-
mentary Code Authority for the Industry, when approved by two-
thirds vote of the members of the Industry, shall become the
standards for the industry and shall become effective 30 days after
such approval. Thereafter, all members of the industry shall follow
such standards. Failure to follow such standards set-up by the Sup-
plementary Code Authority, so approved by the members of the
Industry, will be an unfair method of competition and a violation
of this Supplementary Code. Provided, however, that exceptions to
such standards may be applied for by formally petitioning the
Supplementary Code Authority, and if the Supplementary Code
Authority does not disapprove in writing within 60 days the peti-
tion shall become final when ratified by two-thirds vote of the mem-
bers of the Industry, and if the Supplementary Code Authority
disapproves, an appeal may be taken to the Administrator.

Rule 3. Selling on Consignment. — No member of the Industry
shall ship goods on consignment except under circumstances to be
defined by the Supplementary Code Authority, where peculiar cir-
cumstances of the Industry require the practice.

Rule 4. Substitution. — The furnishing of articles more or less ex-
pensive, of better or inferior quality or of larger or smaller size
than specified without making proper adjustment.

Rule 5. Lump Su??i Bids and Contracts. — To submit a bid or bids
for two or more commodities, one or more of which is a Forged Tool
Product in which the unit price of each commodity is not clearly
stated. Accepting orders or contracts for sale at a lump sum where
the contract does not specify the exact quantity, quality, and unit
price of the product purchased.

Rule 6. The making by any member of the Industry of false
statements or records to mislead or deceive the Supplementary Code
Authority and/or Secretary concerning the compliance with any
article or section of this Supplementary Code.

822

.Rule 7. Commissio?is. — The splitting of commissions or other com-
pensation received by an employee or agent of the seller, with the
buyer for the purpose or with the effect of influencing a sale.

Rule 8. Dates, etc. — Stating in the invoice of any product as the
date thereof a date later than the date of the shipment of such
product, or including in any invoice any product shipped on a date
earlier than the date of such invoice.

Rule 9. Service, Extras. — For the purpose of influencing a sale,
rendering to any purchaser of any product in connection with the sale
of such product any service, unless fair compensation for such service
shall be paid for by such purchaser.

Article IX — Monopolies

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

Article X — Modifications

Section 1. This Supplementary Code and all the provisions thereof
are expressly made subject to the right of the President, in accord-
ance with provisions of subsection (b) of Section 10 of the Act, from
time to time to cancel or modify any order, approval, license, rule
or regulation issued under said Act.

Section 2. This Supplementary Code, except as to provisions re-
quired by the Act, may be modified on the basis of experience or
changes in circumstances, such modifications to be based upon appli-
cation by the Supplementary Code Authority to the Administrator
and such Notice and Hearing as he shall specify and to become
effective and be a part of this Supplementary Code on approval by
the President.

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 costs
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 Supplementary Code shall become effective at 12 : 01 A.M.
o'clock on the tenth day after it is approved by the President.

Approved Code No. 84 — Supplement No. 9.
Registry No. 1149-29.

Approved Code No. 84 — Supplement No. 10
SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

CUTLERY, MANICURE IMPLEMENT AND
PAINTERS' AND PAPERHANGERS' TOOL MANU-
FACTURING AND ASSEMBLING INDUSTRY

As Approved on March 26, 1934

ORDER

Approving Supplementary Code of Fair Competition for the
Cutlery, Manicure Implement and Painters and Paperhangers
Tool Manufacturing and Assembling Industry

a division of the fabricated metal products manufacturing and
metal finishing and metal coating industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, and in accordance with the
provisions of Section I of Article VI of the Basic Code for the Fabri-
cated Metal Products Manufacturing and Metal Finishing and Metal
Coating Industry, approved November 2, 1933, for approval of a
Supplementary Code of Fair Competition for the Cutlery, Manicure
Implement and Painters and Paperhangers Tool Manufacturing and
Assembling Industry, and hearing having been duly held thereon;
and the annexed report on said Supplementary Code, containing find-
ings with respect thereto, having been made and directed to the
^Prpsioent *

(823)

824

hereby stayed pending my further Order either within a period of
sixty days from the effective date of this Supplementary 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,

Div ision A dministrator.

Washington, D.C.,

March 26, 1904.

REPORT TO THE PRESIDENT

The President,

The White House.
Sir: This is a report on the Supplementary Code of Fair Com-
petition for the Cutlery, Manicure Implement and Painters and
Paperhangers Tool Manufacturing and Assembling Industry, a divi-
sion of the Fabricated Metal Products Manufacturing and Metal
Finishing and Metal Coating Industry, the hearing having been
conducted thereon in Washington, D.C., January 23, 1934 in accord-
ance with the provisions of Title I of the National Industrial Re-
covery Act.

GENERAL STATEMENT

The Cutlery, Manicure Implement and Painters and Paperhangers
Tool Manufacturing and Assembling Industry, being truly repre-
sentative of this division of the Fabricated Metal Products Manu-
facturing and Metal Finishing and Metal Coating Industry, has
elected to avail itself of the option of submitting a Supplementary
Code of Fair Competition, as provided for in Section 1 of Article
VI of the Basic Code, for the Fabricated Metal Products Manufac-
turing and Metal Finishing and Metal Coating Industry approved
by you on the second day of November, 1933.

RESUME OF THE CODE

Article I states the purpose of the Supplementary Code.

Article II accurately defines specific terms employed in the Supple-
mentary Code.

Article IV establishes a Supplementary Code Authority consist-
ing of six (6) members, one member of which has been elected by
an Executive Committee of each of the six sections of the Industry,
which Executive Committee has in turn been elected by the mem-
bers of the six sections of the Industry respectively at a meeting
called by the Temporary Code Authority, and gives the Adminis-
trator the authority to appoint one additional member without vote
and without expense to the Industry, unless the Code Authority
agrees to pay such expense, and provides machinery for obtaining
statistics and the administration of the Supplementary Code.

Article V provides for an accounting system and methods of cost
finding and/or estimating.

(825)

826

Article VI provides for determining the lowest reasonable cost of
the products of this Industry.

Article VII provides methods of setting up and revising price
lists.

Article VIII sets forth the unfair trade practices of this Supple-
mentary Code which has been especially designed to offset unfair
competition in this division of the Industry.

Article IX provides against monopolies and monopolistic
practices.

Article X contains the mandatory provisions contained in Section
10 (b) of the Act and also provides for the submission of proposed
amendments to the Supplementary Code.

Article XI recognizes that price increases be limited to actual
additional increase in the seller's costs.

Article XII states the effective date and duration of this
Supplementary Code.

FINDINGS

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

I find that:

(a) Said Supplementary Code is well designed to promote the
policies and purposes of Title I of the National Industrial 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 Avelfare by promoting the organiza-
tion of industry for the purposes 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 in-
dustries, by avoiding undue restriction of production (except as may
be temporarily required), by increasing the consumption of indus-
trial and agricultural products through increasing purchasing power,
by reducing and relieving unemployment by improving standards of
labor, and by otherwise rehabilitating industry.

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

(d) The Supplementary Code is not designed to and will not per-
mit monopolies or monopolistic practices.

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

827

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

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

Kespectfully,

Hugh S. Johnson,

Administrator.
March 26, 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE CUTLERY, MANICURE IMPLEMENT AND PAINT-
ERS AND PAPERHANGERS TOOL MANUFACTURING
AND ASSEMBLING INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY

Article I — Purposes

To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mentary Code of Fair Competition for the Cutlery Manufacturing
and Assembling Industry, pursuant to Article VI of the Basic Code
of Fair Competition for the Fabricated Metal Products Manufac-
turing and Metal Finishing and Metal Coating Industry approved
by the President of the LTnited States on the 2nd day of November
1933 and the provisions of this Supplementary Code shall be the
standard of fair competition for and shall be binding upon every
member thereof.

Article II — Definitions

The term Cutlery, Manicure Implement and Painters and Paper-
hangers Tool Manufacturing and Assembling Industry, hereafter
referred to as the " Industry " is defined to mean the manufacture
and/or assembly for sale by the manufacturer or assembler of Pocket
Knives of all kinds, Hunting Knives, Table knives of all kinds,
(except those mounted with silver or hollow handles of pressed or
moulded base metal,) Table Forks made of steel or any of the several
steel alloys, (except when mounted with silver or hollow handles of
pressed or moulded base metal,) various types of Table Cutlery such
as Butter knives, Pie servers and Spoons with blades of steel or any
of the several steel alloys, (except when mounted with silver or
hollow handles as described above.) Carvers of all kinds, (with
the same exceptions as to mounting as governing Table knives and
forks,) Household knives. Butcher, Professional, Trade knives and
Spatulas of all kinds, mounted with handles or the finished or semi-
finished blades for any of the foregoing items, Butcher's Cleavers,
Straight Razors, Scissors, Shears, Grass Shears, Primers, Tin Snips,
Manicure Implements, Manicure Sticks, Painters and Paperhangers
Tools and Equipment, (other than such products as are specifically
covered in the approved Codes for the Ladder Industry and the
Brush Industry,) and all other Cutlery products which are the
natural affiliates of the above and are generally accepted and defined
by manufacturers and distributors as Cutlery.

The term " employee " as used herein includes anyone engaged in
the Industry in any capacity receiving compensation for his services,

(828)

829

irrespective of the nature or method of payment of such
compensation.

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

The term " member of the Industry " as used herein includes but
without limitation any individual, partnership, association, corpo-
ration or other form of enterprise, engaged in the Industry as an
employer or on his or its own behalf.

The term " Section " as used herein is defined to mean a subdivision
of the Industry already established or which may be established of
which there are now six designated as

1. Table and Trade Knife Section.

2. Pocket Knife Section.

3. Scissors and Shears Section.

4. Manicure Implement Section.

5. Straight Eazor Section.

6. Painters & Paperhangers Tool Equipment Section.

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

The term " Basic Code " as used herein is defined to mean the
Basic Code of Fair Competition for the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry, as
approved by the President on the 2nd day of November, 1933.

The term " Supplementary Code Authority " as used herein means
the agency which is to administer this Supplementary Code as here-
inafter provided.

The term "Association " as used herein, is defined to mean the
American Cutlery Manufacturers Association or its successor.

Article III — Employment Provisions

This Industry is a division of the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry,
and without limitation the wage, hour and labor provisions in
Article III of its basic code as approved by the President November
2, 1933, including Section 1 of said Article III by which the provisions
of Sub-sections (1), (2) and (3) of Section 7 (a) of Title I of the
Act are made conditions of this Code, are specifically incorporated
herein and made a part hereof as the wage, hour and labor provisions
of this Supplementary Code.

Article IV — Organization and Administration

Section 1. The Supplementary Code Authority is hereby consti-
tuted the agency to administer the provisions of this Supplementary
Code.

Section 2. The members of the Supplementary Code Authority
shall be elected as follows : Each section of the Industry shall within
thirty days after the effective date hereof, and annually thereafter,
by letter ballot or otherwise as may be approved by the Adminis-
trator, elect an Executive Committee of from to three to seven mem-

830

bers by a majority vote of the members of the Industry comprising
that section. The Executive Committee shall elect one of their
members as a member of the Supplementary Code Authority, and
the Supplementary Code Authority shall consist of one member
from each section of the Industry. In addition to the members
above provided, the Administrator may appoint one member who
shall serve without vote and without expense to the Industry unless
the Supplementary Code Authority agrees to pay such expenses.
The representative who may be appointed by the Administrator shall
be given reasonable notice of. and may sit at all meetings of, the
Supplementary Code Authority. Upon a vacancy occurring the
Supplementary Code Authority shall elect a new member from the
section of the Industry not represented on the Supplementary Code
Authority.

Section 3. " The Supplementary Code Authority " is hereby
constituted the Agency to administer the provisions of this Supple-
mentary Code and to collect and distribute all statistical reports of
the Industry.

Section 4. The Supplementary Code Authority shall also from
time to time furnish the Basic Code Authority, designated in said
Basic Code, such information as may be required to be furnished
under the terms of said Basic Code.

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

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

(a) To adopt bylaws and rules and regulations for, and keep
records of its procedure and for the administration and enforcement
of this Supplementary Code, subject to such rules and regulations
as the Administrator may prescribe.

(b) To obtain from the Industry such information, reports and
statistics as are required for the administration of this Supplemen-
tary Code which shall be furnished by all members of the Industry
without unreasonable delay, provided that nothing in this Supple-
mentary Code shall relieve any member of the Industry of any exist-
ing obligation to furnish reports to any Government agency. Any
information or statistics which may be called for which may be of
a confidential nature, shall be collected and compiled by a suitable
agent (not a member of or connected with a member of the Indus-
try) selected by the Supplementary Code Authority who may be a
permanent employee. The data and/or statistics so collected shall
be furnished to the Supplementary Code Authority or the Industry
only in combination with such other information of the same type
and in such form as will not disclose the individual data and/or sta-
tistics furnished by any single member of the Industry. No mem-
ber of the Supplementary Code Authority or other person shall

831

at any time have access to or be furnished with any information by
said agent which would disclose the confidential information fur-
nished by any single member of the Industry, except in the case of
a violation of this Supplementary Code in which case all pertinent
data and information shall be laid before the Supplementary Code
Authority for its consideration and decision.

(c) To use any such Trade Association and other agencies as it
deems proper for the carrying out of any of its activities provided
for herein, provided that nothing herein shall relieve the Supple-
mentary Code Authority of its duties or responsibilities under this
Supplementary Code and that such Trade Associations and agencies
shall at all times be subject to and comply with the provisions hereof.

(d) To make recommendations to the Administrator for the co-
ordination of the administration of this Supplementary Code with
such other Codes, if any, as may be related to the Industry.

(e) To distribute the expense incurred in connection with its ac-
tivities relative to the administration of this Supplementary Code
among the members of the Industry, the share o,f said expense to be
paid by each member of the Industry, to be based upon the volume
of business and/or such other factors as the Supplementary Code
Authority may prescribe, and every member of the Industry subject
to the jurisdiction of this Supplementary Code shall pay to the Sup-
plementary Code Authority his or its proportionate share of the cost
of maintaining such Supplementary Code Authority. When such
proportionate share to be paid by each member of the Industry has
been determined, the Supplementary Code Authority shall notify
each member of the Industry of the amount thereof, and said mem-
ber of the Industry shall promptly pay said amount to the Supple-
mentary Code Authority at such times and in such installments as
the Supplementary Code Authority may require. Any unreasonable
delay in making such payment or refusal to make same shall be a
violation of this Supplemental Code.

Section 7. The Supplementary Code Authority shall be and
hereby is empowered, upon complaint duly made to it in writing
or upon its own initiative, to make such inquiry and investigation
into the operation of this Supplement aiy Code as may be necessary:
subject to such rules and regulations as the Administrator may
prescribe.

Section 8. The Supplementary Code Authority shall, as soon as
practical, formulate certain standards of quality, under various
classifications, for those products of the Industry as are adapted
to standardization and simplification, which shall become the stand-
ards for the Industry upon approval by the Administrator.

Section 9. Each trade or industrial association directly or indi-
rectly 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
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 10. In order that the Code Authority shall at all times be
truly representative of the industry and in other respects comply

51699—34 15

832

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.

Section 11. If the Administrator shall determine that any action
of the Supplementary Code Authority or any agency thereof may
be unfair or unjust or contrary to the public interest, the Ad-
ministrator may, after reasonable endeavor, to confer with the
Supplementary Code Authority, require that such action be sus-
pended to afford an opportunity for investigation of the merits of
such action and further consideration by the Supplementary 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 30 days' notice to him of intention to proceed with
such action in its original or modified form.

Article V — Accounting

Section 1. With respect to that portion of his product which is
within the Industry, every employer shall use an accounting system
for determining his allowable cost which conforms to the principles
of, and is at least as detailed and complete as, the uniform method of
accounting and uniform method of costing, to be formulated by the
Supplementary Code Authority and approved by the Administrator
with such variations therefrom as may be required by the individual
conditions affecting any employer or group of employers, and as may
be approved by the Supplementary Code Authority and the Admin-
istrator.

Section 2. When the Supplementary 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 Supplementary
Code, the Supplementary Code Authority may cause to be determined
the lowest reasonable cost of the products of this Industry, such de-
termination to be subject to such notice and hearing as the Adminis-
trator 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 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 Supplementary
Code Authority, upon its own initiative or upon the request of any
interested party, shall cause the determination to be reviewed.

Article VI — Selling Below Cost

(a) No employer shall sell or exchange any product of the Indus-
try, manufactured or assembled by him at a price, or upon terms and
conditions, that will result in the purchaser paying for the goods

833

received, less than the allowable cost thereof to the seller, determined
in accordance with a uniform method of costing above described or
as may be determined by the Supplementary Code Authority as pro-
vided in Section 2 of Article V provided, however, that dropped lines,
or seconds, or inventories which must be disposed of by any employer,
may be sold at any price and on any terms and conditions, but only
if such employer, not less than 10 days before said disposal, has filed
with the Supplementary Code Authority, a statement in writing, set-
ting forth the fact of, and reasons for, such proposed disposal; and
Supplementary Code Authority has not, before the termination of
such 10 day period, in writing disapproved the proposed disposal,
such disapproval shall only be made when alleged facts are misrepre-
sented.

(b) Provided, further, that the Supplementary Code Authority,
upon application to it shall grant permission to any employer to sell
below his costs in order that he may meet competitive prices filed in
accordance with the provisions of Article VII (a) of this Supple-
mentary Code, or to meet competition from products of equivalent
design, character, quality, or specifications, manufactured outside the
United States; and provided further, that the provisions of this
paragraph shall not be deemed to apply to or to affect the sale of any
product for direct shipment in export trade by any member of the
Industry within the meaning of the term " export trade " as it is
used in the Export Trade Act.

Article VII — Selling Prices

(a) Within ten days after this Supplementary Code becomes ef-
fective, each member of the Industry shall file with the Supple-
mentary Code Authority a net price list, or price list and discount
sheet, as the case may be, individually prepared by him showing his
current minimum net prices, or prices and maximum discounts, terms
of payment, and freight or other allowances applying to his stand-
ard merchandise offered to the trade which price list shall be imme-
diately available to all known manufacturers of similar products
and shall be available at the office of the Supplementary Code Au-
thority to all interested parties according to their classification, said
classification to be set up by the Supplementary Code Authority
within sixty (60) days and approved by the Administrator. Re-
vised price lists with or without discount sheets shall be filed from
time to time thereafter with the Supplementary Code Authority by
any manufacturer to become effective five days from the date of such
filing. Notice of such change shall be immediately sent by the Sup-
plementary Code Authority to all known manufacturers of similar
products who thereupon may file, if they so desire, revisions of their
price list or discount sheet which shall become effective upon the
date when the revised price list or discount sheet first filed shall go
into effect, provided that he shall not establish prices lower, nor
discounts greater, nor conditions of sale more favorable than those
contained in the revised list first filed.1

(b) No employer shall sell directly or indirectly by any means,
trick, device or subterfuge whatsoever, any product of the Industry

1 See paragraph 2 of order approving this Code.

834

covered by the provisions of this Article at a price lower or at dis-
counts greater or on more favorable terms of payment than those
provided in his filed current price lists and discount sheets except
as provided in Article VI.

Article VIII — Unfair Trade Practices

In addition to the unfair trade practices covered in Article V of
the Basic Code, for all purposes of this Supplementary Code, the
following described acts shall constitute unfair practices. Any
member of the Industry who shall directly or indirectly, through
any officer, employee, agent or representative, use or employ any
of such unfair practices shall be guilty of a violation of this Supple-
mentary Code.

(1) The post dating of invoices for more than 90 days from date
of shipment except on agricultural implements.

(2) The allowing of better terms of payment than 2% 10th E.O.M.
net 30 days E.03L

(3) The making or entering into any new contract or agreement
or the extension of any existing contract or agreement beyond July
1, 1934, the effect of which will amount to delivery on consignment
of any products of the Industry except as may be modified by the
Supplementary Code Authority and approved by the Administrator.

(4) Accepting a contract or contracts for either stock or special
brand merchandise at a fixed price without a corresponding com-
mitment on the part of the purchaser to buy a specified quantity
of each and every item, all to be shipped and invoiced within one
year.

(5) No member of the Industry shall attempt to induce the breach
of a written 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.

(6) The misbranding of materials in a manner that will tend to
deceive the consumer as to the quality or type of materials used.

(7) For purpose of influencing a sale no employee shall withhold
from, or insert in any invoice a false record, wholly or in part, of
the transaction represented on the face thereof, nor pay or allow
secret rebates, refunds, credits, unearned discounts (whether in the
form of money or otherwise), or extend to certain purchasers prices,
services, or privileges not extended to all purchasers under like
conditions.

Article IX — Monopolies

No provision in this Supplementary Code shall be so applied as
to permit monopolies or monopolistic practices, or to eliminate,
oppress or discriminate against small enterprises.

Article X — Modifications

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

835

with 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.

Section 2. This Supplmentary 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 appli-
cation by the Supplementary Code Authority to the Administrator
and such notice and hearing as he shall specify and to become
effective and to be a part of this Supplementary Code upon approval
by the Administrator.

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 costs
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 and Duration

This Supplementary Code shall become effective at 12 : 01 A. M.
on the 10th day after its approval by the President and shall continue
in effect until June 16 1935, or the earliest date prior thereto on which
the President shall, by proclamation, or the Congress shall by joint
resolution declare that the emergency recognized by Title I of the
National Industrial Recovery Act has ended.

Approved Code No. 84 — Supplement No. 10.
Kegistry No. 1108-1-05.

Approved Code No. 84 — Supplement No. 12
SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

POWER AND GANG LAWN MOWER
MANUFACTURING INDUSTRY

As Approved on March 26, 1934

ORDER

Approving Supplementary Code of Fair Competition for the
Power and Gang Lawn Mower Manufacturing Industry

a division of the fabricated metal products manufacturing and
metal finishing and metal coating industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, and in accordance with the
provisions of Section 1 of Article VI of the Basic Code for the
Fabricated Metal Products Manufacturing and Metal Finishing and
Metal Coating Industry, approved November 2, 1933, for approval
of a Supplementary Code of Fair Competition for the Power and
Gang Lawn Mower Manufacturing Industry; and hearing having
been duly held thereon ; and the annexed report on said Supplement-
ary Code, containing findings with respect thereto, having been
made and directed to the President:

(837)

838

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 Re-
covery Administration.

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

A. R. Glancy,

Division Administrator.
March 26, 1934.

REPORT TO THE PRESIDENT

The President,

The White House.
Sir: This is a report on the Supplementary Code of Fair Com-
petition for the Power and Gang Lawn Mower Manufacturing In-
dustry, a division of the Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating Industry, the hearing hav-
ing been conducted thereon in Washington, D.C., December 20, 1933,
in accordance with the provisions of Title I of the National Indus-
trial Recovery Act.

GENERAL STATEMENT

The Power and Gang Lawn Mower Manufacturing Industry,
being truly representative of this division of the Fabricated Metal
Products Manufacturing and Metal Finishing and Metal Coating
Industry, has elected to avail itself of the option of submitting a
Supplementary Code of fair practice, as provided for in Section I
of Article VI of the Basic Code, for the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry
approved by you on the second day of November. 1933.

RESUME OF THE CODE

Article I states the purpose of the Supplementary Code.

Article II accurately defines specific terms employed in the Sup-
plementary Code.

Article III establishes a Supplementary Code Authority consist-
ing of three (3) members elected at a meeting called by the Supple-
mentary Code Authority and gives the Administrator the authority
to appoint one to three additional members without vote and pro-
vides machinery for obtaining statistics and the administration of
the Supplementary Code.

Article V provides for the filing of price sheets with the Supple-
mentary Code Authority.

Article VI sets forth the unfair practices of this Supplementary
Code which has been especially designed to offset unfair competition
in this division of the Industry.

Article VII contains the mandatory provisions contained in Sec-
tion 10 (b) of the Act and also provides for the submission of pro-
posed amendments to the Supplementary Code.

(839)

840

Article VIII provides against monopolies and monopolistic prac-
tices, and recognizes that price increases be limited to actual addi-
tional increases in the seller's costs.

Article IX states the effective date and duration of this Supple-
mentary Code.

Schedule "A" gives the average appraisal value of Power and
Gang Lawn Mowers in use for 2, 3, 4, and 5 years of various manu-
facturing companies.

FINDINGS

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

I find that :

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

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

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

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

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

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

Hugh S. Johnson,

Administrator.
March 26, 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE POWER AND GANG LAWN MOWER MANUFACTUR-
ING INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY

Article I — Purposes

To effectuate the policies of Title I of the National Industrial
Recovery Act, this Supplementary Code is established as a code of
fair competition for the Power and Gang Lawn Mower Manufactur-
ing Industry, pursuant to Article VI of the Basic Code of Fair Com-
petition for the Fabricated Metal Products Manufacturing and
Metal Finishing and Metal Coating Industry approved by the Presi-
dent of the United States on the 2nd clay of November, 1933, and the
provisions of this Supplementary Code shall be the standards of
fair competition for and shall be binding upon every member
thereof.

Article II — Definitions

The term " Industry ", as used herein, means the manufacture and
the sale by the manufacturers thereof of power lawn mowers, gang
lawn mowers, and/or tractors manufactured for the drawing of
gang lawn mowers when sold by the manufacturer with and as
a part of gang lawn mowers.

" Member of the Industry " — includes, but without limitation, any
individual, partnership, association, corporation, or other form of
enterprise engaged in the industry either as an employer or on his
or its own behalf.

" Basic Code " — means the Basic Code of Fair Competition for the
Fabricated Metal Products Manufacturing and Metal Finishing and
Metal Coating Industry, as approved by the President on the 2nd
day of November, 1933.

" Distributor " — means a purchaser who, in regular course of busi-
ness, purchases products of the industry and other products in like
field of distribution for resale.

" Consumer " — means a purchaser of the product of the Industry
who is not a distributor.

"Association " — means the Power and Gang Lawn Mower Manu-
facturers Association.

" President ", "Act " and "Administrator " — mean respectively the
President of the United States, Title I of the National Industrial
Recovery Act, and the Administrator for Industrial Recovery.

Article III — Organization, Powers and Duties of the Supple-
mentary Code Authority

1. There shall be constituted a Supplementary Code Authority,
consisting of three members, who shall be selected within sixty days

(841)

842

from the effective date of this Code by a majority vote of the mem-
bers of the industry present and entitled to vote, in person or by
proxy, at a meeting called for such purpose.

Pending the selection of the Supplementary Code Authority, the
Code Committee shall be a Temporary Supplementary Code Author-
ity, with all powers, duties and responsibilities herein granted to the
Supplementary Code Authority.

Each member of the industry who, by writing filed with the Sup-
plementary Code Authority, shall assent to this Supplementary Code
and agree to comply with the terms and provisions thereof, shall be
entitled to vote at all meetings for the selection of the Supplementary
Code Authority and for the selection of substitute members thereof.

2. The term of office of each member of the Supplementary Code
Authority shall be at the will of the members of the industry, and
successor or substitute members of the Supplementary Code Author-
ity shall be selected in the same manner as provided in paragraph 1
of this Article for the appointment of the original members of the
Supplementary Code Authority.

3. In addition to membership as above provided, there may be
appointed by the Administrator one to three members of the Supple-
mentary Code Authority without vote, who shall be given notice of
all meetings of the Supplementary Code Authority.

4. The Association shall impose no inequitable restrictions on
admission to membership, and shall submit to the Administrator true
copies of its articles of association, by-laws, regulations, and any
amendments when made thereto, together with such information as
to membership, organization and activities as the Administrator may
deem necessary to effectuate the purposes of the Act.

5. In order that the Supplementary Code Authority shall be at all
times truly representative of the industry, and in other respects com-
ply 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 Supplementary 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
Supplementary Code Authority.

6. Nothing contained in this Supplementary Code shall constitute
the members of the Supplementary Code Authority partners for any
purpose.

POWERS AND DUTIES

7. The Supplementary Code Authority shall have the following
powers and duties, the exercise of which shall be reported to the
Administrator :

(a) To insure the execution of the provisions of this Supplemen-
tary Code and provide for the compliance by the members of the
industry with the provisions of the Act, subject to rules and regula-
tions of the Administrator in regard to compliance procedure.

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

(c) To obtain from members of the industry through an impartial
agency such information and reports as are required for the admin-
istration of this Supplementary Code. No individual reports shall

843

be disclosed to any other member of the industry or to any other per-
son except as herein provided, but shall be made available to the
Administrator.

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

(f) Subject to review by the Administrator, to determine the
expenses of the administration of this Supplementary Code and to
secure payment by the members of the industry of such expenses
apportioned between them on the basis of volume of sales in dollars,
or on such other basis as shall be equitable.

(h) The Supplementary Code Authority, subject to the approval
of the Administrator, shall cause to be formulated an accounting
system and method of cost finding and/or estimating capable of use
by all members of the industry. After such system and method have
been formulated, full details concerning them shall be made available
to all members. Thereafter all members shall determine and/or
estimate cost in accordance with the principles of such methods.

(i) To co-operate Avith and assist the Basic Code Authority in
administering the Basic Code and in obtaining from members subject
to this Supplementary Code such reports, statistics and other data as
the Basic Code Authority may properly require.

8. If the Administrator shall determine that any action of a code
authority or any agency thereof may be unfair or unjust or contrary
to the public interest, the Administrator may require that such action
be suspended to afford an opportunity for investigation of the merits
of such action and further consideration by such code authority or
agency pending final action which shall not be effective unless the
Administrator approves or unless he shall fail to disapprove after
30 days' notice to him of intention to proceed with such action in its
original or modified form.

Article IV — Employment Provisions

This Industry is a division of the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry and
without limitation the wage, hour and labor provisions in Article III
of its basic code as approved by the President on November 2, 1933,
including Section 1 of said Article III by which the provisions of
sub-section (1), (2) and (3) of Section 7 (a) of Title I of the Act

844

are made conditions of this Supplementary Code, are specifically in-
corporated herein and made a part hereof as the wage, hour and labor
provisions of this Supplementary Code.

Article V — Marketing

1. By means of price sheets each member of the industry, within
ten (10) days after this Supplementary Code shall be approved by
the President, shall publish individual prices, terms and conditions
of sale of all products of the industry offered for sale, which prices,
terms and conditions shall be effective forthwith. Each member of
the industry shall express his prices in the form of net prices or dis-
count from list. Discounts based upon quantity and/or trade clas-
sification and terms and conditions under which such discounts will
be granted shall be clearly set forth in price sheets. Such price
sheets shall separately state (a) Net prices or discounts from list
and terms to distributors; (b) Net prices or discounts from list and
terms to consumers.

2. No member of the industry shall sell to any purchaser by any
means whatsoever any product of the industry at a price or discount
other than or on more favorable terms than set forth in published
price sheets of such member at the time outstanding and in force
under the conditions applicable to such sale therein set forth.

(a) Nothing in this paragraph shall preclude any member of the
industry from publishing prices below cost in order to meet existing
competition on products of equivalent design, size, character, qual-
ity and specifications, as such competition is shown by price sheets of
other members of the industry at the time outstanding and in effect.
Whenever a member of the industry under the provisions of this
paragraph shall publish a price below cost, he shall simultaneously
file with the Supplementary Code Authority a statement in writing
of the items on his own price sheet which are below cost, and iden-
tify the price sheets and items thereon of any other member or mem-
bers of the industry which shall be claimed to form the justification.

(b) In order that the provisions of this paragraph shall not
require increases in sales prices which would be unfair to purchasers
of the product of the industry and harmful to the industry by
producing further decrease in volume, which is now subnormal,
any member of the industry, pending determination of the prin-
ciples of cost accounting by the Supplementary Code Authority, may
exclude from the computation of cost unabsorbed overhead resulting
from overhead standards based upon an assumed or actual pro-
duction equivalent to but not exceeding the production of the vear
1926.

4. Publication of price sheets shall be in the manner following:
Each member of the industry shall

(a) File a copy of his price sheet with the Supplementary Code
Authority, which sheet shall be open to inspection by any interested
person ;

845

(b) Mail on the same day copy thereof to all known members of
the industry;

A change contained in the published price sheet of any member
of the industry, which has been in effect for five (5) days, shall
be effective five (5) days after the publication of the revised price
sheet and not prior thereto. The foregoing five day limitation shall
not apply to price changes by any other members of the industry
to the extent necessary for corresponding effective date to all
members.1

6. Notwithstanding the provisions in this Article contained, obso-
lete, defective and/or discontinued items or lines which now or
hereafter may be in stock may be sold below cost and without publi-
cation of prices, terms and conditions, provided prior to the sale
thereof a list of the items or lines claimed to be obsolete, defective
and/or discontinued shall be filed with the Supplementary Code
Authority, together with a description thereof, dates of manufac-
ture and prior sale volume, together with such further information
concerning the same as may be required by the Supplementary Code
Authority, and provided, further, no sale shall be made under the
provisions of this paragraph if the Supplementary Code Authority
shall determine that the items or lines proposed to be sold under
this paragraph are not in fact obsolete, defective or discontinued,
and that the purpose or effect of the proposed sale would be an
evasion of this code and unfair to the other members of the industry,
and the Supplementary Code Authority shall advise the member
proposing to make such sale of such finding within ten days. Any
action taken by the Supplementary Code Authority under the pro-
visions of this paragraph shall be subject to disapproval by the
Administrator, and if disapproved sales under the provisions of
this paragraph may be made.

Article VI — Unfair Practices

In place and in substitution of the fair trade practices set forth
in Article V of the Basic Code, the following acts as described shall
constitute unfair methods of competition; and no member of the
industry shall do any act or thing in this article described as an
unfair method of competition :

1. Entering into or accepting contracts or orders or making com-
mitments to sell without corresponding commitment on the part of
the purchaser to buy a specified quantity at a fixed price.

2. Paying or allowing any commission or benefit to a distributor
in connection with a sale to any other purchaser if the amount
thereof, when deducted from the sale price, shall make the net to the

1 See paragraph 2 of order approving this Code.

846

member of the industry making the sale less than the price submitted
to be granted such distributor.

3. Making any payment or allowing any credit or benefit to a
distributor or to any purchaser or prospective purchaser not con-
nected with a sale.

4. Making any adjustments, allowances, credits or refunds upon
change in published prices, terms and/or conditions to any purchaser
for deliveries already made or with respect to contracts theretofore
entered into.

5. Giving notice to any purchaser or prospective purchaser or to
any other member of the industry of intention to change prices, terms
and/or conditions of sale.

6. Promising or allowing protection to a purchaser or prospective
purchaser against changes in prices, terms and/or conditions.

7. Making delivery of any product of the industry on memorandum
or consignment, except under circumstances to be defined by the
Supplementary Code Authority with the approval of the Admin-
istrator where peculiar circumstances of the industry require the
practice.

8. Including in or omitting from any invoice any statement so
that the invoice shall not be a true statement of the transaction
between the member of the industry and the purchaser.

9. Pre-dating or post-dating any invoice or contract of sale, except
where shipment is after January 1st and prior to April 1st of a
year April 1st dating of the same year may be given.

10. Granting terms which shall be more favorable than three
(3%) per cent C.O.D. or cash with order; two (2%) per cent for
cash in ten days; or sixty (60) days trade acceptance; sixty (60)
days maturity with interest at the rate of six (6%) per cent per
annum for payment after maturity. It shall not be a violation of
this paragraph to give longer payment terms on deliveries under
written lease or conditional sale contract, provided at least twenty-
five (25%) per cent of the purchase price (or such lesser percent as
may be determined by the Supplementary Code Authority with the
approval of the Administrator where peculiar conditions of the in-
dustry require such lesser percent) shall be paid on or before de-
livery, and an extra charge is made as interest at the rate of not less
than six (6%) per cent per annum, computed from sixty (60) days
after delivery.

11. Publishing shipping terms other than F.O.B. place of manu-
facture or equivalent.

12. Repurchasing or taking in trade any product of the industry
or paying or granting credit or allowance therefor in amounts in ex-
cess of the amount for such product as set forth in a trade-in allow-
ance schedule to be compiled in the following manner :

The Supplementary Code Authority shall determine the average
price paid by consumers on purchases of used products of the indus-
try, based upon a survey of such prices covering the trade-in season
of 1933. From this shall be deducted the average cost for similar
items, of reconditioning, handling and selling. The resulting figure
shall represent the trade-in allowance amount which shall be subject
to the disapproval of the Administrator. Full facts with respect to
sales and market values in connection with trade-in allowances shall

847

be furnished to the Administrator by the Supplementary Code Au-
thority upon request of the Administrator.

The Supplementary Code Authority shall, during the month of
October, 1934 and during October of each year thereafter, secure all
possible reports and data as to retail or consumer market prices on
sale of used products of the industry during the spring and summer
season immediately preceding, together with the average costs of re-
conditioning, handling and selling such used products. The Sup-
plementary Code Authority, based upon such data, shall determine
the trade-in allowance figure for each product item at a figure which
will permit a trade-in allowance and resale thereof on the average at
not less than cost. Such revised trade-in allowance schedule shall
be submitted to the Administrator, together with the facts upon
which the same is based, and if approved by the Administrator shall
constitute the trade-in allowance schedule.

13. Making any express guarantee with respect to a product of the
Industry except the following guarantee.

" The Manufacturer guarantees all parts of equipment shipped
under this agreement for ninety (90) days from the date of pur-
chase by Consumer thereof against defective material and/or work-
manship, but not against damage caused by accident, abuse or faulty
operation, and will repair or replace free of charge f.o.b. factory all
defective parts returned to the factory charges prepaid.*'

14. 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 principal of
such agent, or the represented party, without the knowledge of such
employer, principal or party. Nothing in this paragraph contained
shall be construed to prohibit free and general distribution of articles
commonly used for advertising except so far as such articles are actu-
ally used for commercial bribery as hereinabove defined.

15. Doing any act or thing by recourse to or through the medium
of a subsidiary or affiliate or exclusive distributor which a member
of the industry is prohibited from himself doing under the provisions
of this Supplementary Code.

Article VII — General

1. When the Supplementary Code Authority determines that an
emergency exists in this industry and that the cause thereof is de-
structive price cutting such as to render ineffective or seriously
endanger the maintenance of the provisions of this Supplementary
Code, the Supplementary Code Authority 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 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 product.

51699—34 16

848

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

2. Nothing in Articles V and VI of this Supplementary Code shall
apply to sales between members of the industry, except no sale shall
be made by one member of the industry to another member of the
industry below cost.

3. Nothing in Articles V and VI of this Supplementary Code shall
apply to export sales.

4. This Supplementary Code and all the provisions thereof are
expressly made subject to the right of the President, in accordance
with the provisions of subsection B of Section 10 of the Act, from
time to time to cancel or modify any order, approval, license, rule, or
regulation issued under Title I of said Act and specifically, but with-
out limitation, to the right of the President to cancel or modify his
approval of any provision of this Supplementary Code or any condi-
tion imposed by him upon his approval thereof.

5. This Supplementary Code, except as to provisions required by
the Act, may be modified and/or amended on the basis of experience
or changes in circumstances, such modifications and/or amendments
to be based upon application to the Administrator by the Supple-
mentary Code Authority or other representative group within the
industry and such notice and hearing as the Administrator shall
specify," and to become effective as part of this Supplementary Code
on approval of the President, and/or of the Administrator.

6. In case any provision of this Supplementary Code shall impose
unusual or undue hardship on any member of the industry, such
provision may be suspended as to such member by the Supplementary
Code Authority with the approval of the Administrator.

Article VIII — Monopolies

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

Article IX — Effective Date

1. This Supplementary Code shall become effective at 12 : 01 A. M.
on the tenth (10th) day after approval of same by the President.

Approved Code No. S4 — Supplement No. 12.
Registry No. 1399-05.

Approved Code No. 84 — Supplement No. 11
SUPPLEMENTARY CODE OF FAIR COMPETITION

FOR THE

TACKLE BLOCK MANUFACTURING INDUSTRY

As Approved on March 26, 1934

ORDER

Approving Supplementary Code of Fair Competition for the
Tackle Block Manufacturing Industry

a division of the fabricated metal products manufacturing and
metal finishing and metal coating industry

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, and in accordance with the
provisions of Section I of Article VI of the Basic Code for the
Fabricated Metal Products Manufacturing and Metal Finishing and
Metal Coating Industry, approved November 2, 1933, for approval
of a Supplementary Code of Fair Competition for the Tackle Block
Manufacturing Industry, and hearing having been duly held thereon ;
and the annexed report on said Supplementary Code, containing
findings with respect thereto, having been made and directed to the

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended :
A. R. Glancy,

Division Administrator.

Washington, D.C.,

March 26, 1934.

(849)

REPORT TO THE PRESIDENT

The President,

The White House.
Sir: This is a report on the Supplementary Code of Fair Competi-
tion for the Tackle Block Manufacturing Industry, a division of the
Fabricated Metal Products Manufacturing and Metal Finishing and
Metal Coating Industry, the hearing having been conducted thereon
in Washington, D.C.. January 23, 1934, in accordance with the pro-
visions of Title I of the National Industrial Recovery Act.

GENERAL STATEMENT

The Tackle Block Manufacturing Industry, being truly representa-
tive of this division of the Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating Industry, has elected to
avail itself of the option of submitting a Supplementary Code of
fair practice, as provided for in Section 1 of Article VI of the Basic
Code, for the Fabricated Metal Products Manufacturing and Metal
Finishing and Metal Coating Industry approved by you on the
second day of November, 1933.

RESUME OF THE CODE

Article I states the purpose of the Supplementary Code.

Article II accurately defines specific terms employed in the Sup-
plementar}- Code.

Article IV establishes a Supplementary Code Authority consisting
of three (3) members, to be elected, at a meeting called by the
Temporary Code Authority, and gives the Administrator the au-
thority to appoint one additional member without vote and provide-
machinery for obtaining statistics and the administration of the
Supplementary Code.

Article V provides for an accounting system and methods of cost
finding and/or estimating.

Article VI provides for determining the lowest reasonable cost
of the products of this Industry.

Article VII provides methods of setting up and revising price
lists.

Article VIII sets forth the unfair trade practices of this Sup-
plementary Code which has been especially designed to offset unfair
competition in this division of the Industry.

(850)

851

Article IX provides against monopolies and monopolistic prac-
tices.

Article X contains the mandatory provisions contained in Section
10 (b) of the Act and also provides for the submission of proposed
amendments to the Supplmentary Code.

Article XI recognizes that price increases be limited to actual
additional increase in the seller's costs.

Article XII states the effective date of this Supplementary Code.

FINDINGS

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

I find that:

(a) Said Supplementary Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the organi-
zation of industry for the purposes of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
vision, by eliminating unfair competitive practices, by promoting
the, fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, b}r 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.

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

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

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

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

Respectfully.

Hugh S. Johnson,

A dminis trato r.
March 26, 1934.

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE TACKLE BLOCK MANUFACTURING INDUSTRY

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY

Article I — Purposes

To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mentary Code of Fair Competition for the Tackle Block Manufac-
turing Industry, pursuant to Article VI of the Basic Code of Fair
Competition for the Fabricated Metal Products Manufacturing and
Metal Coating Industry, approved by the President of the United
States on the second day of November 1933, and the provisions of this
Supplementary Code shall be the standard of fair competition for
and shall be binding upon every member thereof.

Article II — Definitions

Section 1. The term "Tackle Block Manufacturing Industry"'
means the manufacture for sale of a general line of tackle or pulley
blocks for Manila or Wire Rope by the manufacture.

Section 2. The terms "President", "Act", and "Administrator"
as used herein shall mean respectively the President of the United
States, the National Industrial Recovery Act, and the Administrator
for Industrial Recovery.

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

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

Section 5. The term " member of the industry " as used herein
includes but without limitation any individual, partnership, associ-
ation, corporation or other form of enterprise engaged in the industry
either as an employer or on his or its own behalf.

Section 6. The term " Basic Code " as used herein is denned to
mean the Basic Code of Fair Competition for the Fabricated Metal
Products Manufacturing and Metal Finishing and Metal Coating
Industry as approved by the President of the United States on the
second day of November, 1933.

Section 7. The term " Supplementary Code Authority " as used
herein means the agency which is to administer this Supplementary
Code as hereinafter provided.

Section 8. The term " Supplementary Code Committee " as used
herein is denned to mean the Tackle Block Industry Committee

(852)

853

formed and appointed by the members of the Industry to present
this Supplementary Code.

Section 9. The term " Federation " as used herein is defined to
mean the Fabricated Metal Products Federation or its successor.

Article III — Employment Provisions

This Industry is a division of the Fabricated Metal Products Man-
ufacturing and Metal Finishing and Metal Coating Industry, and
without limitation the wage, hour and labor provisions in Article III
of its Basic Code as approved by the President November 2, 1933,
including Section 1 of said Article III by which the provisions of
Sub-sections (1), (2), and (3) of Section 7 (a) of Title I of the Act
are made conditions of this Code, are specifically incorporated herein
and made a part hereof as the wage, hour and labor provisions of
this Supplementary Code.

Article IV — Organization and Administration

Section 1. During the period not to exceed sixty (60) days fol-
lowing the effective date the Supplementary Code Committee of
the Industry shall constitute a temporary Supplementary Code
Authority until the Supplementary Code Authority is elected.
There shall be constituted within the sixty-day period a Supplemen-
tary Code Authority consisting of 3 members to be elected by the
members of the Industry, at a meeting called by the Temporary
Supplementary Code Authority, upon ten days' notice sent by regis-
tered mail to all known members of the Industry, who may vote
either in person or by proxy. The members of the Supplementary
Code Authority first elected shall serve until their successors are
elected. The members of the Supplementary Code Authority shall
be elected in the following manner :

(a) 3 members by fifty-one percent vote of members of the In-
dustry, present in person or by proxy, weighted on the basis of one
vote for each member and one additional vote for each 10 employees,
or fraction thereof, engaged in the Industry, in the previous calen-
dar year reported to the temporary Supplementary Code Authority ;
provided, however, that no one member may cast more than 33%
percent of total number of votes cast.

A vacancy in the membership of the Supplementary Code Author-
ity may be filled by majority vote of the remaining members of
the Supplementary Code Authority; provided, however, that the
right to vote, as set forth above, shall be subject to the limitations
provided in Section IV of this Article. In addition to the members
above provided the Administrator may appoint one member with-
out vote to serve on the Supplementary Code Authority.

Section 2. Any Association directly or indirectly participating
in the selection or activities of the Supplementary Code Authority
shall (1) impose no inequitable restrictions on membership, and (2)
submit to the Administrator such information as to membership,
organization and activities as the Administrator may deem necessary
to effectuate the purposes of the Act.

854

Section 3. In order that the Supplementary Code Authority shall,
at all times, be truly representative of the Industry, and in other
respects comply with the provisions of the Act, the Administrator
may prescribe such Hearings as he may deem proper; and thereafter,
if he shall find that the Supplementary Code Authority is not truly
representative or does not in other respects comply with the pro-
visions of the Act, may require an appropriate modification in the
method of selection of the Supplementary Code Authority.

Section 4. All members of the Industry are subject to the juris-
diction of the Supplementary Code Authority; and all members
assenting thereto shall be entitled to participate in and share the
benefits of the Supplementary Code Authority; shall be entitled to
vote in the selection of members of the Supplementary Code Author-
ity as provided in Section 1 of this Article, and shall pay their
reasonable share of the expenses of the Administration of this Sup-
plementary Code, such reasonable share to be determined by the
Supplementary Code Authority, subject to review and approval by
the Administrator on the basis of volume of business and/or such
other factors as may be deemed equitable by the Supplementary Code
Authority.

Section 5. Nothing contained in this Supplementary Code shall
constitute the members of the Supplementary Code Authority part-
ners for any purpose.

Section 6. The Supplementary Code Authority shall also from
time to time furnish to the Basic Code Authority, designated in said
Basic Code, such information as may be required to be furnished
under terms of said Basic Code.

Section 7. The Supplemental^ Code Authority shall have the
following further powers and duties;

(a) To insure the execution of the provisions of this Supplemen-
tary Code and provide for the compliance of the industry with the
provisions of the Act subject to such rules and regulations as the
Administrator may prescribe.

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

(c) To obtain from members of the industry such information and
reports as are required for the administration of the Supplementary
Code, which information and reports shall be submitted by members
to such administrative and/or government agencies as the Admin-
istrator may designate; provided that nothing in this Supplementary
Code shall relieve any member of the industry of any existing obli-
gations 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 Supplementary
Code Authority of its duties or responsibilities under this Supple-
mentary Code and that such trade associations and agencies shall at
all times be subject to and comply with the provisions hereof.

855

(e) To make recommendations to the Administrator for the
coordination of the administration of this Supplementary 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
Supplementary Code Authority and its activities.

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

(i) If the Administrator shall determine that any action of a
Code Authority or 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 for the 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 the original or modified form.

Article V — Accounting and Costing

With respect to that portion of his product which is within the
industry, every member of the Industry shall use an accounting
system for determining his allowable cost which conforms to the
principles of the uniform method of accounting, and the uniform
method of costing, to be formulated by the Supplementary Code
Authority and approved by the Administrator with such variations
therefrom as may be required by the individual conditions affecting
any member or group of members of the Industry, and as may
be approved by the Supplementary Code Authority and the
Administrator.

Article VI — Selling Below Cost

No member of the Industry shall sell or exchange any product of
the Industry with respect to which minimum net prices and/or max-
imum discounts have been filed in accordance with Article VII, at a
price or upon terms and conditions, which will result in the pur-
chaser paying for the goods received, less than the allowable cost
thereof to the seller, determined in accordance with a uniform method
of costing above described, based upon total cost of each line for par-
ticular type or style of tackle blocks ; provided, however, that dropped
lines, or seconds, or inventories which must be converted into cash to
meet emergency needs may be disposed of by any member of the
Industry, at any price and on any terms and conditions, but only if
such member of the Industry has filed with Supplementary Code
Authority a statement in writing, setting forth the fact of, and rea-
sons for, such proposed disposal, and provided further, any member

856

of the Industry may sell below his costs in order that he may meet
competitive prices filed in accordance with the provisions of Article
VII of this Supplementary Code, or to meet competition from prod-
ucts of equivalent design, character, quality, or specifications, manu-
factured outside the United States.

Article VII — Price Lists

(a) Each member of the Industry shall within ten (10) days after
the effective date of this Supplementary Code, file with the Supple-
mentary Code Authority a copy of his catalog together with his net
price list, and/or his discount sheet applying to his catalog as used
by such member in the trade, as the case may be, individually pre-
pared by him, and in such form and for such products as the Supple-
mentary Code Authority may prescribe showing his current prices,
or prices and discounts, and terms of sale and payment, and the Sup-
plementary Code Authority shall immediately send copies thereof to
all known manufacturers of such specified product.

Revised net price lists and/or maximum discount sheets and/or
all other conditions of sale shall be filed from time to time thereafter
with the Supplementary Code Authority by any member of the
Industry, to become effective upon the date specified therein, but
such revised net price lists and/or discount sheets and/or all other
conditions of sale shall become effective ten (10) days after the filing
thereof with the Supplementary Code Authority. Copies of such
revised net price lists and/or maximum discount sheets and/or all
other conditions of sale with notice of the effective date specified,
shall be immediately sent to all known manufacturers of such prod-
uct, any of whom may file if he so desires, to become effective upon
the date when the revised net price list and/or maximum discount
sheet and/or all other conditions of sale first filed shall go into effect,
revisions of his net price lists, and/or maximum discount sheets
and/or all other conditions of sale establishing prices or prices and
discounts not lower or conditions of sale not more favorable than
those established in the revised net price lists and/or maximum dis-
count sheets and/or all other conditions of sale first filed. Current
price lists shall be available to all interested parties.1

(b) The Supplementary Code Authority shall have the power to
require any member of the Industry to furnish it such information
as it may require to determine that the price lists and/or discount
sheets filed by a member of the Industry are not below his allowable
costs as determined in accordance with the provisions of Article V
hereof.

Each member of the Industry shall furnish the Supplementary
Code Authority for distribution with such number of copies of his
catalog and his net price lists and/or maximum discount sheets as
Supplementary Code Authority may prescribe.

(c) No member of the Industry shall sell directly or indirectly,
by any means whatsoever, any product of the industry with respect
to which lists and maximum discounts and/or minimum net prices
have been filed as provided in Article VII at lower prices or at
greater discounts, or on other conditions of sale different from those

1 See paragraph 2 of order approving this Code.

857

provided in his own current net price lists, or price lists and maxi-
mum discount sheets as filed.

(d) Nothing in Article VII of this Supplementary Code shall
apply to sales between members of the industry, provided however
that no sales shall be made below cost.

(e) Terms of credit shall not be allowed for a greater length of
time, or upon a more favorable basis than follows :

(1) Two (2) percent discount from the net amount of the invoice,
for payment within ten (10) days from date of invoice, except in
the case of shipments to the states of California, Oregon and Wash-
ington, in which cases two (2) percent discount for payment within
fifteen (15) days from date of invoice may be allowed: "Date of
Invoice " meaning date of shipment.

(2) Except that upon request by a customer, two discount periods
per month may be allowed by members as follows: Two (2) percent
cash discount may be deducted from the net amount of all invoices
dated from the 1st to the 15th day of any month, if payment is made
by the 25th of the same month, and on invoices dated from the 16th
of the month to the end of the month if paid by the 10th of the next
month.

In the granting of these terms on shipments to California, Oregon
and Washington, the payment date may be extended five days, that is,
to the 30th of the current month, and 15th of the next month, in lieu
of the payment date specified above.

(3) Invoices allowed to run beyond the discount period provided
above, shall be due net in thirty days from date of invoice.

(4) The offering of more favorable terms of credit than provided
above, is declared to be an unfair trade practice and a violation of
this Supplementary Code.

(f) No provision of this Supplementary Code relating to prices
or terms of selling, shipping, or marketing shall apply to export
sales or shipments for export trade within the meaning of the term
" export trade ", as is used in the Export Trade Act ; provided, how-
ever, that exceptions due to particular circumstances shall be sub-
mitted to the Supplementary Code Authority for its consideration
and determination, and its decision shall be subject to the approval
of the Administrator.

Article VIII — Unfair Trade Practices

The Unfair Trade Practices covered by Article V of the Basic
Code, with the exception of Section "A" thereof, which is covered
by provisions of this Supplementary Code, for all purposes of this
Supplementary Code shall constitute unfair practices. Any mem-
ber of the Industry who shall directly or indirectly, through any
officer, employee, agent or representative, use or employ any of such
unfair practices, described in Article V of the Basic Code, excepting
Section "A" thereof, shall be guilty of a violation of this Supple-
mentary Code.

Article IX — Monopolies

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

858
Article X — Modifications

Section 1. This Supplementary Code and all the provisions thereof
are expressly made subject to the right of the President, in accord-
ance with provisions of subsection (b) of Section 10 of the Act, from
time to time to concel or modify any order, approval, license, rule
or regulation issued under said Act.

Section 2. This Supplementary Code, except as to provisions re-
quired by the Act, may be modified on the basis of experience or
changes in circumstances, such modifications to be based upon appli-
cation, by the Supplementary Code Authority to the Administrator
and such Notice and Hearing as he shall specify, and to become
effective on approval by the President.

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 costs
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 Supplementary Code shall become effective at 12 : 01 o'clock
A.M. on the tenth day after it is approved by the President.

Approved Code No. 84 — Supplement No. 11.
Registry No. 1610-07.

EXECUTIVE ORDERS

EXECUTIVE ORDER

Government Contracts and Contracts Involving the Use of

Government Funds

By virtue of authority vested in me as President of the United
States, it is hereby ordered that:

1. (a) All invitations to bidders hereafter promulgated by or in
behalf of any executive department or independent establishment or
other agency or instrumentality of the United States, including
Government-owned and Government-controlled corporations (all of
the foregoing being hereinafter described as agencies of the United
States), shall contain a provision to the effect that no bid will be
considered unless it includes or is accompanied by a certificate duly
executed by the bidder stating that the bidder is complying with and
will continue to comply with each approved code of fair competition
to which he is subject, and if engaged in any trade or industry for
which there is no appro ved code of fair competition, then stating that
as to such trade or industry he has become a party to and is compl3ring
with and will continue to comply with an agreement with the President
under section 4 (a) of the National Industrial Recovery Act.

(b) No bid which does not comply with the foregoing requirements
shall be considered or accepted.

(c) All contracts and purchase orders authorized by any agency
of the United States shall contain a provision to the effect that the
party or parties awarded any such contract or purchase order shall
comply with each approved code of fair competition to which it is
subject and if engaged in any trade or industry for which there is no
approved code of fair competition, then, as to such trade or industry,
with an agreement with the President as aforesaid; and that the
United States shall have the right to cancel any contract for failure
to comply with such provision and make open market purchases or
have the work called for by the contract otherwise performed, at the
expense of the contractor.

(d) No agency of the United States and no Government contractor
or supplier shall hereafter accept or purchase for the performance of
any contract or purchase order or enter into any subcontracts for
any articles, materials, or supplies, in whole or in part produced or
furnished by any person who shall not have certified that he is com-
plying with and will continue to comply with each code of fair com-
petition which relates to such articles, materials, or supplies, or in
case there is no approved code for the whole or any portion thereof,
then, to that extent, with an agreement with the President as
aforesaid.

(e) The foregoing provisions of this order shall likewise apply to all
contracts and purchase orders authorized by any State, municipal
corporation, local subdivision, person, or corporation in connection

(859)

860

with projects carried out or to be carried out, wholly or in part, with
funds loaned or granted by any agency of the United States, and all
contracts and agreements for the making of any such loan or grant
shall contain a provision requiring the State, municipal corporation,
local subdivision, person, or corporation receiving such loan or grant,
to comply with the provisions of this order; provided that this para-
graph shall not be construed as requiring the restriction of the use of
materials to those produced within the United States nor to require
price differentials in favor of such materials.

2. Any person falsely certifying as to compliance as aforesaid who
submits any such proposal, bid, contract, or subcontract, or accepts
any purchase order, may be punished as provided in section 10 (a) of
the National Industrial Recovery Act, by a fine of not to exceed Five
Hundred Dollars ($500) or imprisonment not to exceed 6 months, or
both, and in event of any such false certification by any such person,
any contract, subcontract, or purchase order to which he is party
secured by or in furtherance of any such proposal or bid may be can-
celed by the other party thereto, and the unfinished portion thereof
completed at the expense of the person guilty of such false certifica-
tion and his sureties, if any.

3. Whenever a dispute shall arise between any agency of the
United States and any bidder, contractor, supplier, or other person
as to compliance with any code of fair competition or with an agree-
ment with the President as aforesaid in connection with any proposal,
bid, contract, subcontract, or purchase order mentioned herein,
the Administrator for Industrial Recovery, or such agency as he shall
designate, shall decide such dispute and, for the purposes of action
under this Executive order, such decision shall be final and conclusive;
but the determination of such agency of the United States shall be
effective for all purposes pending such decision.

4. All provisions of approved codes of fair competition shall apply
to the making and performance of contracts with or sales to agencies
of the United States.

5. The Administrator for Industrial Recovery may make excep-
tions in specific cases or otherwise under this order whenever such
action shall be recommended to him by an agency of the United
States and when in the judgment of the Administrator justice or pub-
lic interest will best be served thereby.

6. Any provisions of Executive Order No. 6246, signed August 10,
1933, or any other Executive order, and any rule or regulation in
conflict herewith are hereby to that extent modified and rescinded.

FRANKLIN D. ROOSEVELT.
The White House,

March 14, 1934-

[No. 6646]

EXECUTIVE ORDER

Establishing the Office of Special Adviser on Foreign Trade

WHEREAS the guidance of public policy in relation to international
commerce has tended, in recent years, to encounter increasingly
complex problems, which can be solved only upon the basis of the
comprehensive analysis and coordinated utilization of those of our
resources which relate to trade with other countries ; and

WHEREAS this analysis and utilization require that the powers
and duties assigned to various executive establishments and agencies
for the purpose of promoting, reinforcing, or protecting the foreign
trade of the United States be coordinated and the work of such
establishments and agencies be made as effective as possible;

NOW, THEREFORE, by virtue of and pursuant to the authority
vested in me under title I of the National Industrial Recovery Act
approved June 16, 1933 (ch. 90, 48 Stat. 195), and otherwise, and in
order to aid in effectuating the policy of said title and the fulfillment
of the purposes hereinbefore set forth —

(1) There is hereby established the Office of Special Adviser to
the President on Foreign Trade, the head of which shall be the Special
Adviser, who shall be appointed by the President and shall receive a
salary to be fixed by me. The Special Adviser may appoint, without
regard to the Civil Service laws or the Classification Act of 1923, as
amended, fix the compensation and prescribe the duties and authority
of such officials and employees, and make such expenditures (includ-
ing expenditures for personal services, and rent at the seat of the
Government and elsewhere, for law books, books of reference, news-
papers and periodicals, and for paper, printing, and binding) as may
be necessary to carry into effect the provisions of this order.

(2) (a) The Special Adviser, in order to effectuate the general
purposes of this order, and to keep me informed with respect to our
foreign trade, is authorized to obtain, review, and coordinate the
information, statistics, and data with reference to the foreign trade
of the United States collected or prepared by any department or
other establishment or agency of the Federal Government (herein-
after referred to as " department or other agency"), or elsewhere.

(b) In connection with foreign trade activities, the Special Adviser
is authorized to carry on negotiations with respect to specific trade
transactions with any individual, corporation, association, group, or
business agency interested in obtaining assistance from the Federal
Government through (1) financing transactions, (2) barter trans-
actions, or (3) other forms of Governmental participation authorized
by law.

(c) The Special Adviser shall bring such proposals with respect to
these transactions as seem meritorious to him before the departments
or other agencies affected by or having an interest therein for ap-
propriate action, and shall keep me advised concerning the action
taken or proposed by such department or other agency.

51699—34 17 (861)

862

(d) The authorization herein set forth shall not exclude any depart-
ment or other agency from carrying on such activities as are now
authorized by law. For example, the State Department shall func-
tion in its usual way to the extent that any question of foreign policy
is involved.

(3) (a) The departments and other agencies, including the export-
import banks, are hereby requested to make available to the Special
Adviser (and whenever practicable in the form requested by him)
their information, statistics, and data concerning foreign trade, to
furnish (with the consent of the head of the department or other
agency) their services and facilities and to cooperate with him to
as full an extent as may be practicable in order to effectuate the pur-
poses of this order. The Special Adviser is authorized to reimburse
any department or other agency for exceptional or unusual assistance
from such funds as may be allocated to the Office of the Special
Adviser.

(6) The contact of the Special Adviser with each department or
agency shall be through the head of such department or agency or
through such channel as the head of such department or agenc}7 shall
designate.

(4) For the purposes of this order the sum of $100,000 is hereby
allocated to the Office of the Special Adviser to the President on
Foreign Trade from the appropriation of $3,300,000,000 authorized
by section 220 of the National Industrial Recovery Act and made by
the Fourth Deficiency Act, fiscal year 1933, approved June 16, 1933
(ch. 100, 48 Stat. 274).

(5) (a) The temporary committee created by me as set forth in the
public statement of December 11, "to recommend permanent ma-
chinery to coordinate all Government relations to American foreign
trade" is supplanted by the present arrangement. The Special
Adviser, with the approval of the President, is hereby authorized to
create such committees as he may deem appropriate or necessary to
assist and promote in carrying out the purposes of this order.

(6) The formulation of commercial policies with respect to foreign
trade and the effecting of general foreign-trade agreements will
remain in the department or other agency now charged by law with
responsibility therefor.

FRANKLIN D. ROOSEVELT.
The White House,

March 23, 1934.

[No. 6651]

EXECUTIVE ORDER

Authorizing the Heads of Departments, Independent Estab-
lishments, and Emergency Agencies to Make Certain Ex-
penditures Out of Allocations from the Appropriation for
National Industrial Recovery

By virtue of and pursuant to the Authority vested in me by the
National Industrial Recovery Act of June 16,* 1933 (eh. 90, 48 Stat.
195), and the Fourth Deficiency Act, fiscal year 1933, of June 16, 1933
(ch. 100, 48 Stat. 274, 275), the heads of all emergency agencies
established under the authority of the said National Industrial
Recovery Act and operating under funds allocated to them by the
President from the appropriation for national industrial recovery
contained in the said Fourth Deficiency Act, together with the heads
of all executive departments and other independent establishments
insofar as they operate under funds allocated to them by the President
from the said appropriation, are hereby authorized, out of funds so
allocated, to make such expenditures (including expenditures for
personal services and rent at the seat of government and elsewhere, for
law books and books of reference, for paper, printing, and binding,
and for the purchase, maintenance, and operation of passenger-carry-
ing vehicles), as they may deem necessary to effectuate the purposes
for which the said funds are allocated: Provided, That the purchase,
maintenance, and operation of motor-propelled passenger-carrying
vehicles subsequent to the date of this order shall be subject to the
provisions of section 3 of the act of March 3, 1933 (ch. 212, 47 Stat.
1489, 1513).

All such expenditures made or incurred prior to the date of this
order are herebv confirmed and ratified.

FRANKLIN D. ROOSEVELT.

The White House,

March 27, 1984.

(No. 6660)
(863)

ADMINISTRATIVE ORDERS

ADMINISTRATIVE ORDER NO. 118-32

Code of Fair Competition for the Cotton Garment Industry,
Determination of Northern and Southern Sections as to
the Operation of Section G of Article IV

WHEREAS, Section (G) of Article IV of the Code of Fair Com-
petition of the Cotton Garment Industry, as approved by the Pres-
ident of the United States on November 17, 1933, provides as follows:

"For the purpose of this Article, the states which shall be included
in the southern section are: Alabama, Arkansas, Florida, Georgia,
Louisiana, Mississippi, New Mexico, North Carolina, Oklahoma,
South Carolina, Tennessee, Texas, Virginia. All other states and the
District of Columbia shall be included within the northern section of
the industry, except that for a period of not to exceed six months after
the effective date of this Code the northern-section provisions of this
Article shall not apply to factories operating under this Code which
have been established between January 1, 1933, and September 1,
1933, in the area within 50 miles of the northern boundaries of
Tennessee and Arkansas."

WHEREAS, The said Code was approved subject to provisions in
Section B of the Executive Order approving this Code which provides
as follows:

"That the application of Section G of Article IV be and hereby is
stayed as to members of the industry located in the State of Kentucky
and in those counties in the States of Illinois and Indiana which
border on the Ohio River for such period as the Administrator shall
determine, which period shall not exceed four (4) months from and
after the effective date of the aforesaid Code of Fair Competition for
the Cotton Garment Industry, that during such period the said mem-
bers of the Industry located in the State of Kentucky and in those
counties in the States of Illinois and Indiana bordering on the Ohio
River shall be included in the southern section of the industry for the
purposes of the aforesaid Article IV, that during such period the
Administrator shall hold such hearings and cause such investigations
to be made as he may deem necessary to determine the classification
of the above area for the purposes of the aforesaid Article IV and that
prior to the termination of such period, the Administrator shall
determine the classification of the said area for the purposes of said
Article IV of the said Code of Fair Competition for the Cotton
Garment Industry."

WHEREAS, pursuant to the powers and functions delegated to
me by the President of the United States under Title I of the Na-
tional Industrial Recovery Act, approved June 6, 1933, and other-
wise, and in accordance with the provisions of Section B of the Order
approving the Code of Fair Competition for this Industry; and

WHEREAS, after due notice and hearing on February 14, 1934;
and

(865)

866

WHEREAS, the Code Authority for this Industry unanimously
made certain recommendations; and

WHEREAS, justice requires that appropriate relief be granted
from the provisions of Section G of Article IV of the Code of Fair
Competition and from the conditions imposed therein as herein
SDecified *

NOW,' THEREFORE, I, Hugh S. Johnson, Administrator for
Industrial Recovery, do hereby approve and adopt the recommenda-
tions of the Code Authority for this Industry and findings of the
Deputy Administrator in charge, and it is hereby ordered as to the
operation of Section G of Article IV of the Code of Fair Competi-
tion for this Industry ; sections of the country referred to as north and
south shall be divided by and be determined by a line known as the
38° latitude parallel running from the eastern seaboard to the eastern
Kansas line, thence south to the Oklahoma line, thence west along
the northern boundaries of Oklahoma, Texas, New Mexico, and
Arizona, thence following the western boundary of Arizona to the
Mexican border. This dividing line shall have full force and effect
up to and including September 1, 1934.

PROVIDED, however, that prior to July 1, 1934, the Code Au-
thority for the Cotton Garment Industry shall submit to me a
complete report after investigation upon which a determination can
be made as to whether or not there should be created a differential
between urban and rural localities or otherwise.

Hugh S. Johnson,

Administrator.

Recommended by:
A. D. Whiteside,

Division Administrator.

March 13, 1934.

ADMINISTRATIVE ORDER NO. 4-5

GRANTING LIMITED EXEMPTION FROM THE PROVISIONS OF
ARTICLES IX AND X OF THE CODE OF FAIR COMPETITION FOR THE
ELECTRICAL MANUFACTURING INDUSTRY, TO THE WIRE AND
CABLE SUBDIVISION OF SAID INDUSTRY

It appearing to me that competitive conditions in the Wire and
Cable subdivision of the Electrical Manufacturing Industry require
the limited exemption herein provided from the provisions of Articles
IX and X of the Code of Fair Competition for said Industry approved
by the President August 4, 1933, that the exemption herein granted
is in the furtherance of the public interest and will tend to effectuate
the policy of Title I of the National Industrial Recovery Act, and

Whereas, said Article IX contemplated that provision should be
made in supplemental codes to permit members of subdi visions of
said Code, "to meet existing competition on products of equivalent
design, character, quality, or specifications", without violation of
said Article of said Code, and that such supplemental codes have not
to date been approved by the Administrator.

Pursuant to authority delegated to me under said Title of said Act
by Executive Orders of the President, it is hereby ordered that all
members of the Wire and Cable Subdivision of the Electrical Manu-
facturing Industry be permitted (1) to meet existing competition on
products of equivalent design, character, quality or specifications,
pending specific provision for such contingencies in a supplemental
code for said Subdivision or further determination or order by me,
and (2) to file with the National Recovery Administration any net
price list or price list and discount sheet referred to in Article X of
said Code, and members of said Subdivision of said Industry be and
they hereby are exempted from the provisions of said Article of said
Code to the extent, but only such extent, that the same may be
inconsistent herewith.

Hugh S. Johnson,
Administrator for Industrial Recovery.

Approval recommended:
W. A. Harriman,

Division Administrator.

Washington, D.C.,

March 13, 1934.

(867)

ADMINISTRATIVE ORDER NO. 118-34

Code of Fair Competition for the Cotton Garment Industry,
Stay of the Application of the Order of Determination of
the Northern and Southern Sections as to the Operation
of Section G of Article IV

WHEREAS, an Administrative Order to determine the Northern
and Southern sections as to the operation of Section G of Article IV
of the Code of Fair Competition for the above-named industry was
signed by me on March 13, 1934, and

WHEREAS, justice requires that appropriate relief be granted
from the provisions of the said Administrative Order as herein
sDecified *

NOW,' THEREFORE, I, Hugh S. Johnson, Administrator for
Industrial Recovery, pursuant to the powers and functions delegated
to me by the President of the United States under Title I of the
National Industrial Recovery Act, approved June 16, 1933, and
otherwise, hereby order that the provisions of the Administrative
Order hereinabove mentioned be and they are hereby stayed until
March 26, 1934, and further until a determination of the issues
involved.

Hugh S. Johnson,

Administrator.

Approval recommended:
A. D. Whiteside,

Division Administrator.

March 16, 1934.

(868)

ADMINISTRATIVE ORDER NO. 164-5

CODE OF FAIR COMPETITION FOR THE KNITTED OUTERWEAR
INDUSTRY, ORDER NO. 164-5, TERMINATION OF STAY FOR MANUFAC-
TURERS OF KNITTED OUTERWEAR FOR INFANTS AND CHILDREN

The Code of Fair Competition for the Knitted Outerwear Industry
was approved by the President, December 18, 1933, subject to the
following condition:

"That all manufacturers of knitted outerwear for infants and chil-
dren, sized from infancy to and including age fifteen, be granted a
stay from the provisions of this Code, until determination by the
Administrator, after such hearing as he may deem necessary, as to
whether or not they are to be included in this Code."

Hearings having been held in accordance with the provisions of
said condition January 23, 1934, and the annexed report on said
hearings containing findings with respect hereto having been sub-
mitted by the Deputy Administrator, and finding that the efficient
administration of said Code requires that said manufacturers of
knitted outerwear for infants and children be included under said
Code,

NOW, THEREFORE, I, Hugh S. Johnson, Administrator for
Industrial Recovery, pursuant to the authority vested in me by
Executive Orders of the President, and pursuant to the provisions
of said condition of approval, do order that the Stay granted by
said condition of approval to manufacturers of Knitted Outerwear
for infants and children, sized from infancy to and including age
fifteen (15), be, and it is hereby terminated, and do further order
that all said manufacturers be and they hereby are, governed by
said Code of Fair Competition for the Knitted Outerwear Industry,
this order to become effective seven (7) days after the date hereof.

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

Division Administrator.

Washington, D.C.,

March 16, 1984.

(869)

ADMINISTRATIVE ORDER NO. X-10

REQUIRING CERTAIN STATISTICAL REPORTS FROM MEMBERS OF
INDUSTRIES SUBJECT TO CODES OF FAIR COMPETITION

It appearing to me necessary, for the protection of consumers,
competitors, employees, and others, that certain statistical infor-
mation relative to payrolls, number of employees, and man-hours
worked be furnished by members of industries subject to codes of fair
competition, agreements, or licenses approved under Title I of the
National Industrial Recovery Act;

Pursuant to the authority vested in me by Executive Order No.
6479, dated December 7, 1933, it is hereby ordered that:

(1). Every member of an industry subject to a code of fair com-
petition, agreement or license approved under said Title of said Act
shall furnish, from time to time, such reports concerning payrolls,
employees, and man-hours worked, upon forms approved by me and
bearing a facsimile of my signature as may be requested, with my
approval, by agencies hereinafter designated to receive such reports.

(2). The Bureau of Labor Statistics and Federal and State agencies
working in cooperation with such Bureau are hereby designated as the
agencies to request, receive, and tabulate such reports; provided,
however, that such agencies shall not publish such reports in any
manner which will result in the disclosure of the identity of informa-
tion furnished by any individual or firm filing a particular report; and
provided, further, that individual reports shall not be disclosed
by any employee of such agencies to any person other than a
sworn employee of such agencies or of the National Recovery
Administration .

Hugh S. Johnson,
Administrator for Industrial Recovery.

Washington, D.C.,

March 16, 1934.

(870)

ADMINISTRATIVE ORDER NO. 182-6

ORDER, CODE OF FAIR COMPETITION FOR THE RETAIL FOOD AND
GROCERY TRADE, APPROVAL OF ALLOWANCE FOR ACTUAL WAGES
OF LABOR

Pursuant to Article VIII, Section 1 of the Code of Fair Competition
for the Retail Food and Grocery Trade, and upon the recommendation
of the National Food and Grocery Distributors' Code Authority and
the Administration representative thereon, I hereby order that:

The allowance for actual wages of store labor which must be
included in the selling price of all food and grocery products, covered
by the Code, except as provided in Article VIII, Sections 1 and 2 of
the Code, shall be not less than six (6) per cent of the invoice or
replacement cost, whichever is lower, after deduction of all legitimate
trade discounts exclusive of cash discounts for prompt payment of
any such product.

This order shall become effective within ten days of the date hereof
unless prior to such time cause to the satisfaction of the Administrator
shall be shown to the contrary.

Hugh S. Johnson,
Administrator for National Recovery.
Approval recommended:
Armin W. Riley,

Division Administrator.
C. W. Smith,

Administration Member of Code Authority.

March 21, 1934.

(871)

ADMINISTRATIVE ORDER NO. 196-7

ORDER, CODE OF FAIR COMPETITION FOR THE WHOLESALE FOOD
AND GROCERY TRADE, APPROVAL OF ALLOWANCE FOR ACTUAL
WAGES OF LABOR

Pursuant to Article VII, Section 12 of the Code of Fair Competition
for the Wholesale Food and Grocery Trade, and upon the recom-
mendation of the National Food and Grocery Distributors' Code
Authority and the Administration representative thereon, I hereby
order that:

The allowance for actual wages of labor which must be included in
the selling price of all food and grocery products, covered by the Code,
except as provided in Article VII, Section 12 of the Code, shall be
not less than two (2) per cent of the invoice or replacement cost,
whichever is lower, after deduction of all legitimate trade discounts
exclusive of cash discounts for prompt payment, of any such product.

This order shall become effective within ten (10) days of the date
hereof unless prior to such time cause to the satisfaction of the
Administrator shall be shown to the contrary.

Hugh S. Johnson,
Administrator for National Recovery.
Approval recommended:
Armin W. Riley,

Division Administrator.
C. W. Smith,

Administration Member of Code Authority.

Washington, D.C.,

March 21, 1934-

(872)

ADMINISTRATIVE ORDER NO. 267-4

ORDER, CODE OF FAIR COMPETITION FOR THE USED TEXTILE BAG
INDUSTRY, APPROVAL OF APPLICATION FOR EXTENSION OF TIME
WITHIN WHICH TO FILE LIST OF HAZARDOUS OCCUPATIONS FOR
MINORS

The Code Authority for the Used Textile Bag Industry having been
organized for too short a time within which to prepare a list of hazard-
ous occupations for minors in this Industry pursuant to Section 1 of
Article V of the Code, and an application having been made for an
extension of sixty (60) days from March 1, 1934, within which to file
with the Administrator said list of hazardous occupations, and finding
that justice requires that said extension of time be granted,

NOW, THEREFORE, pursuant to the authority vested in me
under Title I of the National Industrial Recovery Act and by Execu-
tive Orders, it is hereby ordered that such extension of time be and it
hereby is granted.

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

Division Administrator.

March 23, 1934.

(873)

ADMINISTRATIVE ORDER NO. X-ll
Establishing a Board of Three in the Automotive Industry

By virtue of authority vested in me as Administrator for Industrial
Recovery and pursuant to Paragraph 3 of the agreement set forth
below entitled " Principles of Settlement" offered by the President of
the United States to and accepted by the representatives of the
employees and the employers in the automotive industry in Washing-
ton, D.C. March 25, 1934, I hereby order as follows:

A Board of Three is hereby established in the automotive industry.

The following are appointed as members of this Board:

Richard Byrd, Labor Representative.
Nicholas Kelly, Industry Representative.
Leo Wollman, Neutral Representative.

The Board will meet in Detroit at the office of the State N.R.A.
Compliance Director for the State of Michigan.

The first meeting of the Board will be called by the Neutral Repre-
sentative in the above office not later than 7 P. M. Wednesday,
March 28, 1934.

The Board will be governed by the following statement of pro-
cedure and principles:

" PRINCIPLES OF SETTLEMENT

Settlement of the threatened automobile strike is based on the
following principles:

1. The employers agree to bargain collectively _ with the freely
chosen representatives of groups and not to discriminate in any way
against any employee on the ground of his union labor affiliations.

2. If there be more than one group each bargaining committee
shall have total membership pro rata to the number of men each
member represents.

3. N.R.A. to set up within twenty-four hours a board responsible to
the President of the United States, to sit in Detroit to pass on all
questions of representation, discharge and discrimination. Decision
of the Board shall be final and binding on employer and employees.
Such a board to have access to all payrolls and to all lists of claimed
employee representation and such board will be composed of,

(a) A Labor representative.

(b) An Industry representative.

In cases where no lists of employees claiming to be represented have
been disclosed to the employer, there shall be no basis for a claim of
discrimination. No such disclosure in a particular case shall be made
without specific direction of the President.

(874)

875

4. The government makes it clear that it favors no particular
union or particular form of employee organization or representation.

The government's only duty is to secure absolute and uninfluenced
freedom of choice without coercion, restraint, or intimidation from
any source.

5. The Industry understands that in reduction or increases of
force, such human relationships as married men with families shall
come first and then seniority, individual skill and efficient service.
After these factors have been considered no greater proportion of
outside union employees similarly situated shall be laid off than of
other employees. By outside union employees is understood a laid-up
member in good standing, or anyone legally obligated to pay up.
An appeal shall lie in case of dispute on principles of paragraph 5 to
the Board of Three."

Hugh S. Johnson,
Administrator for Industrial Recovery.
Washington, D.C.,

March 26, 1934.

61699— 34— r— 18

ADMINISTRATIVE ORDER NO. 151-12

ORDER, CODE OF FAIR COMPETITION FOR THE MILLINERY INDUSTRY,
GRANTING STAY OF SECTION 11, ARTICLE III, OF THE CODE

A Code of Fair Competition for the Millinery Industry having here-
tofore been approved by the President of the United States on Decem-
ber 15, 1933, and it being provided in Section 11 of Article III of said
Code of Fair Competition that

"No employee shall be permitted to work in excess of five
(5) days in any seven (7) day period",

and,

The Code Authority of the Millinery Industry having reported to
me that said Section 11 of Article III imposes on the Industry an
undue hardship insofar as it applies to the employment of shipping
crews, and

The Millinery Industry being now at the height of its season and
immediate relief appearing to my satisfaction to be necessary,

NOW, THEREFORE, I, Hugh S. Johnson, Administrator for
Industrial Recovery, pursuant to authority vested in me by orders of
the President and otherwise, do hereby order that, pending a determi-
nation of the issues involved, the provisions of said Section 11, of
Article III of the said Code of Fair Competition for the Millinery
Industry be and they are hereby stayed, insofar as said Section 1 1 of
Article III of said Code applies to the employment of shipping crews
for a period not to exceed thirty (30) days from the date hereof,

PROVIDED, HOWEVER, that no such employee shall be per-
mitted to work in excess of six (6) days in any seven (7) day period,
nor in excess of forty-five (45) hours in any seven (7) day period, and

PROVIDED, FURTHER, that this Order may be revoked at
any time at the discretion of the Administrator.

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

Division Administrator.

Washington, D.C.,

March 26, 1934.

(876)

ADMINISTRATIVE ORDER NO. 298-3

Order, Code of Fair Competition for the Wiping Cloth Indus-
try, Approval of Application for Extension of Time Within
which to Comply with the Provisions of Article IV, Sec-

tion 5

An application having been made by the Code Authority for the
Wiping Cloth Industry requesting additional time within which to
comply with the provisions of Article IV, Section 5, of the Code of
Fair Competition for the Wiping Cloth Industry, which provides that
the Code Authority shall submit for the approval of the Administrator
within thirty (30) days from the effective date of the Code a proposal
for adjustment in wages above the minimums provided in the Code;
and finding that justice requires that an extension of time be granted,
NOW, THEREFORE, pursuant to the authority vested in me
under Title I of the National Industrial Recovery Act and by Execu-
tive Orders of the President, I, Hugh S. Johnson, Administrator for
Industrial Recovery, do hereby grant said application and exempt said
Code Authority from compliance with said provisions until the 26th
day of May, 1934.

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

Division Administrator,

March 26, 1934.

(877)

ADMINISTRATIVE ORDER NO. 3-9

ORDER, CODE OF FAIR COMPETITION FOR THE WOOL TEXTILE
INDUSTRY, APPROVAL OF RULES OF PRACTICE AND MERCHANDIS-
ING FOR THE PIECE GOODS SELLING DIVISION, BLANKET DIVISION,
COMMISSION COMBERS GROUP, AND SALES YARN DIVISION OF THE
WOOL TEXTILE INDUSTRY

An application having been duly made pursuant to and in full com-
pliance with the provisions of Article XII, Section 2 (c), of the Code
of Fair Competition for the Wool Textile Industry, as approved
July 26, 1933, and amended January 23, 1934, for my approval of
Rules of Practice and Merchandising for the Piece Goods Selling
Division, Blanket Division, Commission Combers Group and Sales
Yarn Division of the Wool Textile Industry, and hearings having
been duly held thereon and the annexed report on said Rules having
been made and directed to me, and said Rules having been approved
by a three-fourths vote of the members of the respective division or
group, by the Sub-Code Authority of the respective division or group
and by the Code Authority, in accordance with said Article XII,
Section 2 (c):

NOW, THEREFORE, I, Hugh S. Johnson, Administrator for
Industrial Recovery, pursuant to the authority vested in me by
Executive Orders of the President, including Executive Order No.
6543-A, dated December 30, 1933, and pursuant to said Article XII,
Section 2 (c) ; do hereby incorporate, by reference, said annexed report
and do find that said Rules comply in all respects with the pertinent
provisions and will promote the policy and purposes of Title I of the
National Industrial Recovery Act, and of the Code of Fair Compe-
tition for the Wool Textile Industry, and do hereby order that the
said Rules be approved, subject to the following provisions:

(a) It is understood that the provisions for the filing of price lists
shall not be construed to prevent any member of the industry from
changing prices, provided that such changed price is promptly reported
to the Association in the manner provided for.

(b) Prices as filed shall be available to all persons properly request-
ing such data. In order to avoid any undue burden upon the reporting
agency, the Code Authority, subject to the approval of the Adminis-
trator, may formulate such rules as may be necessary and appropriate
for the proper functioning of the price registration agency. Any
person denied information by the Code Authority may appeal to the
Administrator.

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

Division Administrator.
By H. B. Ludlum, Jr.

Washington, D.C.,

March 27, 1934.

(878)

INDEX

Code no.

Industry

Administration:

Administration, Providing for notice of
proceedings and matters in the — of
the National Industrial Recovery Act_.

Administrator, Appointment of Hugh S.
Johnson

Administrator, Delegating further func-
tions and powers to the — for Indus-
trial Recovery

Administrator, Delegation of Authority to

— for Industrial Recovery to prescribe
rules and regulations

Administrator, Delegation of Authority
to — for Industrial Recovery to
Prescribe rules and regulations, etc

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

Code Authority, Appointment of Ad-
ministrator as member of each

Contractors, Government — must com-
ply with approved Codes of Fair
Competition

Cooperatives, Effect on — of Codes of
Fair Competition

Crushed Stone, Sand and Gravel, and
Slag Industries, Administrative ap-
proval of Industrial Sand Division of
the

Delegation of Authority, Rules and
regulations under Section 10 (a) and

— under Section 2 (b) of the National
Industrial Recovery Act

Enforcement of Section 7 (a) of the
National Industrial Recovery Act

Hearings, Authorization of Administrator
to appoint personnel, fix compensa-
tions and conduct

Hospitals, Granting limited exemption
from provisions of Codes of Fair Com-
petition in connection with sales to

Hospitals, Granting permanent stay of
exemption from Codes of Fair Com-
petition in connection with sales to —
for certain Industries

Hospitals, Stay of order granting limited
exemption from provisions of Codes of
Fair Competition in connection with
sales to

Labels, Rules and regulations concern-
ing — bearing Emblems or Insignia of
the N.R.A

(879)

Date

Volume

12-21-33

6-16-33

12-30-33

2- 8-34

1- 6-34

9-29-33

8-10-33

2-17-34

VII

12-27-33

10-14-33

2- 1-34

2-23-34

VII

7-15-33

1-23-34

3- 3-34

VII

2- 2-34

1-17-34

880

Industry

Date

Volume

Administration — Continued.

Labor Provisions, Prescribing Rules and
Regulations for the Interpretation and
Application of Certain — of Codes of

Fair Competition

Labor Provisions, Regulations governing
the posting of — of Codes of Fair Com-
petition —

Modify agreements, Authorizing Admin-
instrator to — entered into or approved
by the President under Title I of the

National Industrial Recovery Act

National Labor Board, Continuance of

the — , Etc

Petroleum Industry, Administration of
the — given to Secretary of the In-
terior

Secretary of Agriculture, Amendment of
Executive Orders which Delegated to
the — certain Authority under the

National Industrial Recovery Act

Secretary of Agriculture, Amendment,
of Executive Order which delegated to
the — Certain Authority under the
National Industrial Recovery Act-_--
Secretary of Agriculture, Continuing in
effect the Authority delegated to the —

by Executive Order No. 6182___

Secretary of Agriculture, Delegation of

certain functions and powers to

Sheltered Workships, Granting — Condi-
tional exemption from Codes of Fair

Competition

Stay, Authority granted to Administra-
tor to — application of Codes if peti-
tion is made within 10 days after effec-
tive date

Abrasives, Coated

Academic Costume

Accessories, Upholstery Spring and

Acetylene, Oxy-

Act. (See National Industrial Recovery Act.)
Adjustment. (See Surgical Dressings Indus-
try.)
Administrator. (See Administration — Ap-
pointment.)

Advertising Display Installation

Advertising Distributing Trade

Advertising Newspapers. (See Graphic Arts.)

Advertising, Outdoor — Trade

Advertising Specialty Manufacturing

Advertising Topography. (See Graphic Arts.)

Air, Compressed

Air Filter Subdivision. (See Machinery and
Allied Products.)

Air Transport

Air, Warm — Furnace Manufacturing

All-Cotton Clothing Linings Division. (See

Cotton Textile Supplement No. 1.)
Allied Products, Machinery and (see Ma-
chinery and Allied Products)

All-metal Insect Screen

Allocation. (See Cotton Garment Industry.)

2-17-34
2-28-34

11-23-33
12-16-33

8-29-33
10-20-33

1- 8-34

7-21-33
6-26-33

3- 3-34

7-15-33

12-30-33

2-19-34

3-10-34

12-15-33

1-30-34
2-17-34

2-24-34
10-31-33

10-11-33

11-14-33
11-27-33

3-17-34
11-14-33

VII

III
VI

VI
VI

VII

IV
VII
VII

V
VII

VII

III
III

VIII

III

881

Code no.

Industry

Date

Volume

Page

237

Allov Casting

1-30-34

2- 8-34
11- 8-33

1-16-34
1-16-34
1-16-34
1-16-34
1-16-34
1-16-34

1-16-34
1-16-34

1-16-34
1-16-34
1-16-34
1-16-34

1-16-34

12-30-33
11- 2-33

3-22-34

2- 2-34

11-27-33

1-30-34

2- 9-34
1-12-34

7-27-33
6-16-33

7-15-33
9-29-33

3-27-34

V
VI

V
V
V
V
V
V

V
V

V
V
V
V

V
IV

VIII
VI

III

VI
V

I
I

VIII

563

268

Aluminum Permanent Mold Castings Divi-
sion. (See Non-Ferrous Foundry.)
Aluminum, Secondary

305

Ambulance, Funeral Vehicle and (Supplement
to Automobile Manufacturing)

671

215

Amendment. (See Executive Orders —

National Industrial Recovery Act.)
American Glassware _

257

Automatic Glassware Division

257

Automatic Tumbler Glassware Division _ _
Automobile Glassware Division __ _

257
257

Blown Glassware Division

Blown Table Glassware Division

Glassware Cutting and Decorating Divi-
sion _

257
257

257

Illuminating Glassware Division

Lamp Chimneys and Lantern Globes
Division

257
257

Miscellaneous Glassware Division

Pressed Glassware Division

257
257

Scientific Glassware Division

257

Technical and Industrial Glassware
Division _ _ _ _ _

257

195

American Leather Belting Division. (See

Leather Industry Amendment No. 1.)
American Match _ _

621

American Petroleum Equipment __ _

339

354

Ammunition, Small Arms and — Manufac-
turing (see also Small Arms and Ammuni-
tion Manufacturing) __ _ _ _ _ _

347

253

Animal Soft Hair

138

Anti-Friction Bearing. _

473

236

Appliance, Cooking and Heating — Manu-
facturing _ __ __

549

Appliance, Railway — Manufacturing Sub-
division. (See Machinery and Allied
Products.)

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

637

198

Appliance, Railway Safetv_ _

Appointment:

Central Statistical Board

724

Hugh S. Johnson as Administrator

Hugh S. Johnson to appoint personnel,
fix compensations, and conduct hear-
ings _ _ _ _____

711
763

Hugh S. Johnson to serve temporarily as

member of each Code Authority

Appropriation, Expenditures out of alloca-
tions from the ■ — for National Industrial
Recovery, _

733

863

Aprons Division. (See Leather Industry
Amendment, No. 1.)

Archery. (See Athletic Goods Manufactur-
ing.)

Arch, Locomotive — Refractories Division.
(See Refractories.)

Arches, Suspended Walls and — Division.
(See Refractories.)

882

Industry

Date

Volume

3-22-34

VIII

9-18-33

2-21-34

VII

11- 4-33

3-16-34

VIII

2-17-34

VII

11- 1-33

12-30-33

12- 7-33

III

11- 6-33

1-30-34

2- 2-34

10- 9-33

8-26-33

12-18-33

1- 8-34

3-26-34

VIII

11- 8-33

Arms, Small — and Ammunition Manufactur

ing (see also Small Arms and Ammunition

Manufacturing)

Artificial Flower and Feather

Approving overtime work on certain con

ditions for the — Industry
Denial of Application for exemption by
Kaplan Brothers
Art Needlework
Arts, Graphic
Asbestos

Ashes, Cinders, — and Scavenger Trade

Asphalt and Mastic Tile

Asphalt Shingle and Roofing Manufacturing- _

Assembling, Porcelain Breakfast Furniture

Athletic Goods Manufacturing

Archery Division

Badminton Division

Balls Division

Baseball Division

Basket Ball Division

Boxing Division

Cricket Division

Emblems Division

Equipment Division

Field Athletics Division

Golf Division

Handball Division

Football Division

Hockey Division

Lacrosse Division

Letters Division

Pennants Division

Polo Division

Racquets Division

Shoe Division

Squash Division

Rugby Foot Ball Division

Soccer Division

Tennis Division

Track Division

LTnif orms Division

Volley Ball Division

Water Polo Division

Wrestling Division

Authority. (See Administration.)
Auto, Fabric — Equipment Division. (See
Light Sewing Industry Except Garments.)
Automatic Glassware Division. (See Ameri-
can Glassware.)

Automatic Sprinkler

Automatic Tumbler Glassware Division.

(See American Glassware.)
Automobile Fabrics, Proofing and Backing

Division. (See Rubber Manufacturing.)
Automobile Glassware Division. (See Ameri-
can Glassware.)

Automobile Manufacturing '

Amendment, No. 1

Amendment, No. 2

Board, Establishing a — of three j

Supplement, No. 1 — Funeral and Ambu- I
lance subdivisions

883

Industry-

Date

Volume

Automotive Parts and Equipment Manufac-
turing

Automotive, Wholesale — Trade

Auxiliary, Marine — Machinery

Axe Division. (See Tool and Implement
Manufacturing Industry Supplement.)

Backing, Automobile Fabrics, Proofing and
— Division. (See Rubber Manufacturing.)

Back wall, Pottery Supplies and — and Ra-
diant

Badminton. (See Athletic Goods, Manufac-
turing.)

Bag, Paper — Manufacturing- (see Paper
Bag Manufacturing)

Bag, Used Textile

Bag, Textile

Bakery Equipment Manufacturing Subdivi-
sion. (See Machinery and Allied Products.)

Ball Clay Production

Balls. (See Athletic Goods Manufacturing.)

Banana and Dry Cleaner or Garment Deliv-
ery Bag Division. (See Paper Bag Manu-
facturing.)

Band Instrument Manufacturing

Bank and Commercial Stationery. (See
Graphic Arts.)

Bankers

Amendment, No. 1

Stay of effective date of Article VIII

Bankers, Investment (see also Investment
Bankers)

Bankers, Mutual Savings

Barber, Beauty and ■ — Shop Mechanical
Equipment Manufacturing

Barber Supplies, Beauty and — Division.
(See Wholesaling or Distributing Trade.)

Baseball. (See Athletic Goods Manufactur-
ing.)

Basic Refractories Division. (See Refrac-
tories.)

Basket Ball. (See Athletic Goods Manufac-
turing.)

Battery, Electric Storage and Wet Primary-.

Bearing, Anti-Friction

Bearings, Railway Brass Car and Locomotive
Journals — and Castings Manufacturing-.

Beater and Jordan and Allied Equipment
Subdivision. (See Machinery and Allied
Products.)

Beauty and Barber Shop Mechanical Equip-
ment Manufacturing

Beauty and Barber Supplies Division. (See
Wholesaling or Distributing Trade.)

Bedding Manufacturing

Bedspreads, Novelty Curtains, Draperies, and
Novelty Pillow

Bed, Temporary limitation of hours of ma-
chine operation in the Wide — Sheeting
Group of the. (See Cotton Textile In-
dustry.)

Beeswax, Candle Manufacturing Industry
and the — and Bleachers Refiners

Beet Sugar (Labor Provisions)

Belting, American Leather ■ — Division. (See
Leather Industry Amendment, No. 1.)

11- 8-33

12-18-33

1-30-34

2-16-34

1-26-34
2- 8-34
9-18-33

1-16-34

2-10-34

10- 3-33

1-22-34

12-11-33

11-27-33
10- 9-33

2-16-34

10- 3-33
11-27-33

1-29-34

2-16-34

1-23-34
11- 1-33

2-20-34
10-27-33

V
VI

V
IV

III
I

I
III

VI
V

VII

884

Industry

Date

Volume

Belt, Men's Garter, Suspender and — Manu-
facturing {see Men's Garter, Suspender,

and Belt Manufacturing)

Belt, Women's {see also Women's Belt)

Beverage Dispensing Equipment

Billiard, Bowling, and — ■ Operating Trade
{see also Bowling and Billiard Operating

Trade)

Binder Twine Division. {See Cordage and

Twine.)
Binding, Library. {See Graphic Arts.)

Bituminous Coal

Revision _•

Blackboard Slate Division. {See Slate.)

Blade, Hack Saw — ■ Manufacturing {see also

Fabricated Metal Products Manufacturing

and Metal Finishing and Metal Coating) _

Blankets Division. {See Wool Textile

Amendment, No. 1.)
Blast Furnace Castings Division. {See Non-

Ferrous Foundry.)
Bleachers, Candle Manufacturing Industry

and the Beeswax and — Refiners

Blind, Venetian

Block, End Grain Strip Wood

Block, Metal Hat Die and Wood Hat

Block, Print Roller and Print — Manufactur-
ing {see also Print Roller and Print Block

Manufacturing)

Block, Tackle — ■ Manufacturing {see also
Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating) _

Blouse and Skirt Manufacturing

Blower, Fan and

Board, Central Statistical — ■ Appointment of
Board, Cork Bulletin and Display —

Manufacturers Division. {See Cork.)
Board, Creation of the National Recovery

Review

Board, Establishment and use of Official

N.R.A. Bulletin

Board, Funds for the National Recovery Re-
view

Board, Insulation {see also Insulation Board)
Boiler, Cast Iron — and Cast Iron Radiator __

Boiler Manufacturing

Boiler, Steel Tubular and Fire Box

Bonding, High Temperature — Mortars Divi-
sion. {See Refractories.)
Bonnaz, Pleating, Stitching and — and Hand

Embroidery

Book Manufacturing. {See Graphic Arts.)

Boot and Shoe Manufacturing

Bottle, Paper Disc Milk — Cap

Bottle, Sanitary Milk — Closure {see also

Sanitary Milk Bottle Closure)

Bowling and Billiard Operating Trade

Box, Folding Paper

Boxing. {See Athletic Goods Manufac-
turing.)

Box, Set Up Paper — Manufacturing

Bracket, Wooden Insulator Pin and — Man-
ufacturing {see also Wooden Insulator Pin
and Bracket Manufacturing)

11- 4-33

10- 3-33

3-16-34

3-17-34

9-18-33
9-29-33

3-17-34

2-20-34

1-24-34

12-30-33

1-23-34

3-26-34

12-30-33

1-30-34

7-27-33

3- 7-34

1- 6-34

3- 9-34
3-22-34

2- 3-34
10- 3-33
10-23-33

2-10-34

10- 3-33
2- 1-34

3-26-34

3-17-34

12-30-33

12-18-33
3-16-34

I
VIII

VIII

VII

VIII

VII

VII i
VIII !

vi :

i
ii

VIII

IV
VIII

885

Industry

Date

Volume

Bradford, Worsted Spinners, — System Divi-
vision. (See Wool Textile Amendment, No.

1.)
Braided Elastic Division. (See Narrow

Fabrics.)
Braided Non-Elastic Division. (See Narrow-
Fabrics) .
Braiding, Knitting — and Wire Covering Ma-
chine (see Knitting, Braiding, and Wire

Covering Machine)

Braid, Millinery and Dress Trimmings — and

Textile

Brass, Copper and — Mill Products

Brassiere, Corset and (see also Corset and

Brassiere)

Brassiere, Corset, — and Allied Trades Fab-
rics Division. (See Cotton Textile Supple-
ment, No . 1.)
Brass, Railway — Car and Locomotive Jour-
nal Bearings and Castings Manufacturing- _
Brass, Sanitary — Plumbing Fittings Division.

(See Plumbing Fixtures.)
Breakfast Furniture, Porcelain — Assembling _

Brewing (Labor Provisions)

Brick, Sleeve, Nozzle, and Runner — and
Tuyeres Division. (See Refractories.)

Broadcasting, Radio

Brush Manufacturing

Household Brush Manufacturers'

Industrial, Jewelers' and Dental Brush

Manufacturers' Division

Paint and Varnish Brush Manufacturers'

Division

Shaving Brush Manufacturers' Division _

Toilet Brush Manufacturers' Division

Twisted-in-Wire Manufacturers' Division-
Wire Brush Manufacturers' Division

Buffing and Polishing Composition

Buff and Polishing Wheel

Builders, Hoist — Subdivision. (See Machin-
ery and Allied Products.)

Builders Supplies Trade

Overhead costs, Approving — , rules and

regulations for the

Overhead costs, Temporary approval of
method of determining — for the —

Trade

Building Materials, Retail Lumber, Lumber
Products, — , and Building Specialties (see
also Retail Lumber, Lumber Products, Build-
ing Materials and Building Specialties)

Building, Railway Car

Building, Savings, — and Loan Associations. _
Bulk Drinking Straw, Wrapped Drinking
Straw, Wrapped Toothpick, and Wrapped

Manicure Stick

Bulletin, Cork — and Display Board Manu-
facturers Division. (See Cork.)
Bulletin, Establishment and use of Official

N.R.A. — Board

Burlesque Theatrical

Burner, Oil

Amendments No. 1

10- 3-33

10-31-33

11- 2-33

8-14-33

1-29-34

1-30-34
3-22-34

1 1-27-33
3-23-34
3-23-34

3-23-34

3-23-34
3-23-34
3-23-34
3-23-34
3-23-34
11- 4-33
11-14-33

10- 3-33
2-17-34

1- 8-34

10- 3-33

2-16-34

12-21-33

3-14-34

1- 6-34

3-20-34

9-18-33

10- 3-33

II
TI

V
VIII

III
VIII
VIII

VIII

VIII
VIII
VIII
VIII
VIII

II
II

VII

VI
IV

VIII

V
VIII

I
I

886

Code no.

Industry

Date

Volume

Page

Business Furniture, Storage Equipment, and

Filing Supply

11- 4-33

383

Bus, Motor .

10-31-33

107

336

Button, Covered (see also Covered Button)

3-16-34

VIII

341

Button, Fiber and Metal Work Clothing —
Manufacturing (See Fiber and Metal Work

Clothing Button Manufacturing)

3-17-34

VIII

155

310

Button, Fresh Water Pearl — Manufacturing.

Buttons. (See Fresh Water Pearl Button
Manufacturing, Wholesaling or Distribut-
ing Trade.)

Cable, Wire and — Subdivision. (See Elec-
trical Manufacturing.)

2-26-34

VII

359

266

Canal, Inland Water Carrier Trade in the
Eastern Division of the United States Oper-

ing Via the New York — System

2- 6-34

281

302

Candle Manufacturing Industry and the

Beeswax and Bleachers Refiners

2-20-34

VII

243

305

Can, Fibre — and Tube

2-24-34
12-15-33
10-31-33

VII
IV

285

152

Can Manufacturers

Canning and Packing Machinery

219

Amendment, No. 1

1-27-34
3-16-34

V
VIII

689

333

Canvas Goods

Canvas Lug Straps Division. (See Leather

Industry Amendment, No. 1.)
Cap and Closure

10-20-33
2- 1-34

246

Cap, Paper Disc Milk Bottle

Caps, Hats and — Division. (See Wholsal-

ing Or Distributing Trade.)

269

Carbon Black Manufacturing

2- 8-34

319

Carbonizers, Wool Scourers and — Division.

(See Wool Textile Amendment, No. 1.)

222

Card Clothing

1-23-34

357

Carded Men's Wear Division. (See Wool

Textile Amendment, No. 1.)

Carded Spinners Division. (See Wool Tex-

tile Amendment, No. 1.)

Carded Women's Wear Division. (See Wool

Textile Amendment, No. 1.)

Carded Yarn. (See Cotton Textile Industry.)

301

Card, Sample

2-19-34

VII

231

Cards, Greeting. (See Graphic Arts.)

202

Carpet and Rug Manufacturing

1-12-34

Carpet, Covered — Padding Division. (See

Light Sewing Industry Except Garments.)

Car, Railway ■ — Appliances (see also Fabri-

cated Metal Products Manufacturing and

Metal Finishing and Metal Coating Supple-

ment, No. 5)

2- 9-34

637

233

Car, Railway Brass — and Locomotive Jour-

nal Bearings and Castings Manufacturing.

1-29-34

511

285

Car, Railway — Building

2-16-34

551

266

Carrier, Inland Water — Trade in the Eastern
Division of the United States Operating

Via the New York Canal System

2- 6-34

281

260

Carving, Ornamental Moulding — and

Turning

2- 5-34

205

292

Car Wheel, Chilled

2-17-34

VII

129

178

Case, Watch — Manufacturing

Caster and Floor Truck Manufacturing Sub-
division. (See Machinery and Allied
Products.)

Castings. (See Non-Ferrous Foundry.)

12-23-33

403

237

Casting, Alloy

1-30-34

563

887

Industry

Date

Volume

3- 8-34

VII

1-29-34

2- 3-34

11- 2-33

V
VI

12-30-33

9- 7-33

12-18-33

11-27-33
11-27-33

III
III

1-23-34

1- 5-34

12-30-33

3-21-34
7-27-33

VIII

11-18-33

III

1-30-34

1-31-34

2-10-34

3-23-34
1-30-34

VIII
V

3-27-34
2-17-34

VIII
VII

11-27-33
3-16-34

III

VIII

11-27-33

12-30-33

1-16-34

3-24-34

III

VIII

11- 4-33

Casting, Die — Manufacturing

Castings, Railway Brass Car and Locomotive
Journal Bearings and — Manufacturing

Cast Iron Boiler and Cast Iron Radiator

Castings, Steel

Cast Iron, Enameled — Plumbing Fixtures
Division. (See Plumbing Fixtures.)

Cast Iron Pressure Pipe

Cast Iron Soil Pipe

Amendment, No. 1

Caulking Compounds, Waterproofing, Damp-
proofing and Concrete Floor Treatments
Manufacturing

Cement

Exemption of members from certain pro-
visions of Article XI for the — Indus-
try, pending modification

Stay, Temporary — of Article XI for the
— Industry

Cement, Shoe and Leather Finish, Polish, and
— Manufacturing

Cement Gun Contractors (see also Construc-
tion)

Central Statistical Board, Appointment of__.

Cereal Machinery Subdivision. (See Ma-
chinery and Allied Products.)

Certification, rule for — of Documents

Chain Hoist, Hand — Manufacturing (see also
Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating
Supplement, No. 2)

Chain Manufacturing (see also Fabricated
Metal Products Manufacturing and Metal
Finishing and Metal Coating Supplement,
No. 3)

Chain, Roller and Silent — Subdivision.
(See Machinery and Allied Products.)

Charcoal and Packaged Fuel Division. (See
Wholesaling or Distributing Trade.)

Chemical Manufacturing _r

Chemical, Rug — Processing Trade (see also
Rug Chemical Processing Trade)

Chewing Gum

Children's Wear, Infants' and (see also In-
fants' and Children's Wear)

Chilled Car Wheel

Chimneys, Lamp — and Lantern Globes
Division. (See American Glassware.)

China, Vitreous — Plumbing Fixtures Divi-
sion. (See Plumbing Fixtures.)

Chinaware and Porcelain Manufacturing

Amendment, No. 1

Chromium Plate, Pewter, — Miscellaneous
Division. (See Silverware Manufactur-
ing-)

Church Envelope Svstem. (See Graphic
Arts.)

Cigar Container

Cinders, Ashes, and Scavenger Trade

Clay, Ball — Production

Clay Drain Tile Manufacturing

Clay, Fire. (See Refractories.)

Clay, Floor and Wall — Tile Manufacturing

888

Code no.

Industry

343
123
136

317

101

200

58
371

187

157

222
341

289

255

298

337

314
5

189
70

Clay Flower Pot Division. (See Earthen-
ware Manufacturing.)

Clay, Machinery

Clay, Structural — Products

Clay, Vitrified — Sewer Pipe Manufacturing.
Cleaner, Banana and Dry — or Garment
Delivery Bag Division. (See Paper Bag
Manufacturing.)

Cleaner, Vacuum — Manufacturing

Cleaning and Dyeing Trade

Cleaning, Laundry and Dry — Machinery

Manufacturing

Cleansing, Sanitary Napkin and — Tissue

Clipper, Hair — Manufacturing Subdivision.
(See Machinery and Allied Products.)

Closure, Cap and

Closure, Sanitary Milk Bottle (see also Sani-
tary Milk Bottle Closure)

Cloth, Cotton — Glove Manufacturing (see
also Cotton Cloth Glove Manufacturing) _ _

Cloth, Hair — Manufacturing

Clothiers' Linings Division. (See Cotton

Textile Supplement, No. 1.)
Clothing, All-Cotton — Linings Division.
(See Cotton Textile Supplement, No. 1.)

Clothing, Card

Clothing, Fiber and Metal Work — Button
Manufacturing (see also Fiber and Metal

Work Clothing Button Manufacturing)

Clothing, Men's

Cloth Reel

Cloth, Table Oil

Cloth, Wiping

Coal, Bituminous

Revision

Coal Dock

New England Division

Northwest Division

Vessel Fueling Division

Coal, Wholesale

Coat and Suit

Exemption, Denial of application for —
by Associated Coat and Suit Manu-
facturers of Portland, Oregon

Exemption, Denial of application for —
by Connecticut Garment Manufac-
turers Association

Coated Abrasives

Cock, Gas

Code Authority, Appointment of Administra-
tor to Serve on Each

Codes of Fair Competition:

Bribery, Commercial — provisions to be
included in codes heretofore approved-
Contractors, Compliance by Govern-
ment — with approved

Contracts, Government — and contracts
involving the use of Government

Funds

Cooperative organization, Denning effect
of certain provisions in the Codes upon_
Cooperatives, Effect on — of

3-17-34
11-27-33
11-27-33

3- 2-34
11- 8-33

10- 3-33
1-12-34

10-20-33

3-26-34

12-30-33
12-15-33

1-23-34

Volume Page

VIII

III
III

VII

VIII

IV
IV

3-17-34

VIII

8-26-33

2-17-34

VII

2- 2-34

2-17-34

VII

9-18-33

9-29-33

3-16-34

VIII

3-16-34

VIII

3-16-34

VIII

3-16-34

VIII

3- 1-34

VII

8- 4-33

10-11-33

9- 7-33

12-30-33

10-31-33

9-29-33

11-27-33

III

8-10-33

3-14-34

VIII

10-23-33

2-17-34

VII

889

Code no.

Industry

Date

Volume

Page

Codes of Fair Competition— Continued.

Hospitals, Granting limited exemption

from provisions of — in connection

with sales to

1-23-34

782

Hospitals, Granting permanent stay of

exemption from — in connection with

sales to — for certain Industries

3- 3-34

VII

726

Hospitals, Granting permanent stay of

exemption from — in connection with

sales to — for certain Industries

3- 3-34

VII

726

Hospitals, Stay of order granting limited

exemption from provisions of — in

connection with sales to

2- 2-34

659

Labor Provisions, Prescribing Rules and

Regulations for the Interpretation and

Application of Certain — of — as they

may affect Handicapped Workers

2-17-34

VII

706

Labor Provisions, Regulations governing

the posting of — of

2-28-34

VII

721

Labor provisions, Rules and regulations

governing the posting of — of

2-12-34

662

Regulations

7-15-33

713

Statistical reports, Requiring certain —

from members of industries subject to_ _

3-16-34

VIII

870

Workshops, Granting Sheltered — Con-

ditional exemption from _ _

3- 3-34

VII

727

265

Coffee

2- 6-34

267

Coffee Bag Division. (See Paper Bag Man-

ufacturing.)

228

Coin Operated Machine Manufacturing

1-23-34

435

345

Collapsible Tube

3-17-34

VIII

209

Combed Thread. (See Cotton Textile In-

dustry.)

Combed Yarn. (See Cotton Textile In-

dustry.)

Combers Division. (See Wool Textile

Amendment, No. 1).

Comfortable Division. (See Light Sewing

Industry except Garments.)

Commercial bribery provisions to be included

in codes heretofore approved

11-27-33

III

659

Commercial Photography Division. (See

Photographic and Photo Finishing.)

181

Commercial Refrigerator

12-23-33

441

Commercial Relief Printing. (See Graphic

Arts.)

Commercial Stationery and Office Outfitting

Trade (see also Wholesaling or Distributing

Trade)

3-16-34

VIII

761

Compensations. (See Administration.)

Compliance. (See Administration — Codes of

Fair Competition.)

Composition, Buffing and Polishing

11-4-33

501

Composition, Cork — and Cork Specialties

Manufacturers Division. (See Cork.)

Compressed Air

10-11-33

653

133

Concrete Masonry

11-27-33

III

407

Concrete Mixer Subdivision. (See Machinery

and Allied Products.)

185

Concrete Pipe Manufacturing

12-30-33

497

311

Concrete, Read v Mixed _ __

2-27-34

VII

371

244

Construction

1-31-34
3- 5-34

V
VII

649

Amendment, No. 1

651

51699—34-

-19

890

Code no.

Industry

Date

Volume

Page

Construction — Continued.

Supplement, No. 1 (For General Con-

tractors)

2-17-34

VII

667

Building Contractors Subdivision

2-17-34

VII

667

Heavy Construction and Railroad

Contractors Subdivision

2-17-34
2-17-34

VII
VII

667

Highway Contractors Subdivision

667

Supplement, No. 2 (For Painting, Paper-

hanging and Decorating)

3-12-34

VIII

739

Supplement, No. 3 (For Elevator Manu-

facturing)

3-21-34

VIII

803

Supplement, No. 4 (For Cement Gun

Contractors)-.

3-21-34

VIII

793

223

Construction Machinery Distributing Trade. _

1-23-34

369

135

Container, Cigar

11-27-33

III

433

245

Container, Corrugated and Solid Fiber

Shipping; _ _ _

2- 1-34

252

rr O —___ — — _ — _ — — — — — — — — _ — — — ___

Container, Cylindrical Liquid Tight Paper

2- 1-34

Container, Glass

10- 3-33

457

370

Container, Open Paper Drinking Cup and

Round Nesting Paper Food (see also Open

Paper Drinking Cup and Round Nesting

Paper Food Container)

3-26-34

VIII

567

Continuance. (See Administration.)

Contractors, Cement Gun (see also construc-
ting

3-21-34

VIII

793

Contractors, General (Construction Supple-

ment, No. 1)

2-17-34

VII

667

Contracts, Government — and contracts in-

volving the use of Government Funds

3-14-34

VIII

859

Contractors' Pump Subdivision. (See Ma-

chinery and Allied Products).

271

Convector, Nonferrous and Steel — Manu-

facturing (Concealed Radiator Industry) __

2-10-34

341

Converting, Cotton. (See Cotton Textile.)

Convej^or and Material Preparation Equip-

ment Manufacturing Subdivision. (See

Machinery and Allied Products.)

236

Cooking and Heating Appliance Manufac-

turing

1-30-34

54&

Cooler, Kiln, — and Drver Manufacturing

Subdivision. (See Machinery and Allied

Products.)

Cooperative Organizations, Denning Effect

of Provisions

10- 3-33

699

Cooperatives, Effect on — of Codes of Fair

Competition

2-17-34

VII

705

Copper and Brass Mill Products

11- 2-33

289

Copperplate, Steel and — Engraving and

Printing. (See Graphic Arts.)

303

Cordage and Twine

2-21-34

VII

257

Binder Twine Division

2-21-34

VII

271

Cordage and Wrapping Twine Division __

2-21-34

VII

267

Cordage and Twine, temporarily placed

under Cotton Textile

7-27-33

725

Modifying Agreement of July 27, 1933__

10-20-33

695

Cordage, Twine and — Division. (See Whole-

saling or Distributing Trade.)

309

Cord, Solid Braided _

2-26-34
1-12-34

VII
V

349

199

Cork

Cork Bulletin and Display Board Manu-

facturers Division

1-12-34

Cork Composition and Cork Specialties

Manufacturers Division

1-12-34

891

Code no.

Industry

Date

Volume

Page

Cork — Continued.

Cork Floor Tile Manufacturers Division.
Cork Insulation Manufacturers Division.
Cork Marine Goods Manufacturers Divi-
sion

1-12-34
1-12-34

2- 1-34
8-14-33

9-18-33

3-23-34

2-19-34

12-30-33

2- 6-34

12-30-33

11-17-33

12-18-33

3-10-34

3-15-34

3-22-34

3-13-34

1-27-34

12-30-33

12-14-33

3-16-34

7-9-33

11-8-33

12-27-33

12-29-33

2-21-34

12-15-33

V
V

I
I

VIII

VII
IV
VI
IV

III

VII

VIII

I
II

VII

45
45

245

Cork Stopper Manufacturers Division

Corrugated and Solid Fiber Shipping Con-
tainer

45
1

Corset and Brassiere

Denial of application for exemption by
Gem-Dandv Garter Co

732

361

Corset, Brassiere and Allied Trades Fabrics

Division. (See Cotton Textile Supplement,

No. 1.)
Cosmetic, Perfume, — and Other Toilet

Preparations (see also Perfume, Cosmetic and

Other Toilet Preparations)

435

299

Costs. (See Builders Supplies Trade — Retail
Lumber, Lumber Products, Building Mate-
rials and Building Specialities.)

Costume, Academic

209

187

Cotton, All — Clothing Linings Division.
(See Cotton Textile Supplement, No. 1.)
Cotton Cloth Glove Manufacturing

525

Staying, Further — application of sub-
section (b), Section 1, Article IV, to
members of the — in the South

Stay of wage provisions for the Southern
Section under the — Manufactur-
ing. _

661

712

118

Cotton Converting. (See Cotton Textile.)
Cotton Garment..

Amendment, No. 1

649

Amendment, No. 2 . _.

655

Amendment, No. 3

629

Amendment, No. 4...

653

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

865

Relief, Temporary — under Article XI,
Section (b) for the — Industry

Southern Division, Allocation of States
to the — under the — Industry

Stay for the Dress Manufacturing In-
dustry and — Industry

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

785
710
699

86S

Cotton Rag Trade Division. (See Scrap
Iron, Nonferrous Scrap Metals and Waste
Masterials Trade.)

Cotton Textile. _

Amendment, No. 1 . . _

677

Amendment, No. 2. _.

675

Amendment, No. 3 . .

583

Amendment, No. 4.. _

635

Amendment, No. 5

637

Carded Yarn Group, Emergency require-
ment as to further limitation of hours of
machine operation in — of the — In-
dustry

703

892

Code no.

Industry

Cotton Textile — Continued.

Carded Yarn Group, Modification of
emergency requirement as to limita-
tion of hours of the machine operation
in the — of the — ■ Industry

Combed Sales Yarn Group, Temporary
limitation of hours of machine opera-
tion in the — of the — Industry

Combed Thread Producers Group, Tem-
porary limitation of machine operation
of the — of the — Industry in respect
of the production of Combed Yarn

Cordage and Twine, Temporarily placed
under

Cotton Thread Industry, Temporary
placing under

Exemption, Denial of application for —
by Alabama Mills Company

Exemption, Denial of application for —
by Crystal Springs Bleachers

Exemption, Denial of application for —
by Dwight Manufacturing

Exemption, Denial of application for —
from Cotton Textile Industry

Fine Goods Group, Further limitation of
machine operation in the — ■ of the —
Industry

Finishing * Branch, Emergency require-
ment as to further limitation of hours
of printing machine operation in the —
of the — Industry

Finishing Branch, Further limitation of
hours of Printing machine Operation
in the — of the — Industry

Finishing Branch, Further limitation of
hours of printing machine operation in
the — of the — Industry

Garment Mfgr., temporarily placed un-
der

Hours, Limitation of machine — for the

— Industry

Mercerizers Group, Temporary limitation

of machine operation of the — of the

— Industry in respect of the production
of Combed Yarn

Pajama Manufacturers, Temporarily
placed under

Rayon Weaving Industry, Temporary
placing under

Reports, Regulations for registration of
machinery and riling of monthly — in
Finishing, Thread Manufacturing and
Yarn Mercerizing Branches of the —
Industry

Rubber Tire Yarns, Extension of stay
limiting Machine Hours in the Cotton
Textile Industry as applying to

Silk Industry, Temporary placing under

Stay, Disapproval of exception and ter-
mination of — under the code of fair
competition for the — Industry

Stay, Extending termination date of —
limiting machine hours in Cotton Tex-
tile Industrv

Date

Volume

1-23-34

1-10-34

7-27-33

7-16-33

8-4-33

12-4-33

III

1-29-34

12-18-33

1-23-34

2-23-34

7-26-33

12- 2-33

1-10-34
7-26-33
7-14-33

1-15-34

11-13-33
7-15-33

11- 6-33

11-27-33

III

VII

IV
V

I
I

893

Code no.

Industry

Date

Volume

Page

Cotton Textile — Continued.

Stay of code provisions as to productive

machinery operation for the — Industry.

7-20-33

691

Supplement, No. 1, for Cotton Convert-

ing

1-24-34

713

All-Cotton Clothing Linings Divi-

sion

1-24-34

720

Clothiers' Linings Division

1-24-34

718

Corset, Brassiere and Allied Trades

Fabrics Division

1-24-34

719

Curtain and Drapery Fabrics Divi-

►

sion

1-24-34

721

Interlinings Division

1-24-34

724

Shirtings Division

1-24-34

722

Wash Goods Division

1-24-34

723

Throwing Industry, Temporary placing

under

7-14-33

Wide Bed Sheeting Group, Temporary

KrJ

limitation of hours of machine opera-

tion in the — of the — Industrv

1-23-34

784

Cotton Threads. (See Cotton Textile.')

Cotton Warps Division. (See Wool Textile

Amendment, No. 1.)

• Coupon, Ticket and. (See Graphic Arts.)

336

Covered Button

3-16-34

VIII

Covered Carpet Padding Division (See Light

Sewing Industry Except Garments.)

Covering, Floor ■ — Division. (See Whole-

saling or Distributing Trade.)

Cover Manufacturing. (See Graphic Arts.)

Cover, Mattress — Division. (See Light

Sewing Industry except Garments.)

283

Covers, Ready-Made Furniture Slip — Man-

ufacturing

2-16-34

527

102

Crane, Shovel, Dragline and

Creation of the National Recovery Review

11- 8-33

563

Board

3- 7-34

VII

709

Cricket. (See Athletic Goods Manufactur-
ing.)
Crown Manufacturing

11- 1-33

243

Crucible, Plumbago

10-23-33

109

Crushed Stone, Sand and Gravel, and Slag. _
Industrial Sand Division, Administrative .

11-10-33

641

approval of — of the!

12-27-33

707

Crusher, Rock and Ore — Subdivision. (See

Machinery and Allied Products.)

Crusher, Rock — Manufacturing

11- 1-33

231

296

Cup, Fluted — , Pan Liner and Lace Paper. . :

2-17-34

VII

175

370

Cup, Open Paper Drinking — and Round
Nesting Paper Food Container (.see also
Open Paper Drinking Cup and Round

Nesting Paper Food Co ntainer)

3-26-34

VIII

567

Curtain and Drapery Fabrics Division. (See

Cotton Textile Supplement, No. 1.)

Curtain, Nottingham Lace

11- 1-33

253

Curtain, Novelty — Draperies, Bedspreads,

and Noveltv Pillow

11- 1-33

263

Cutlery, Manicure Implement and Painters

and Paperhangers Tool Manufacturing and

Assembling (see also Fabricated Metal

Products Manufacturing and Metal Finish-

ing and Metal Coating) ; _

3-26-34

VIII

823

Cutting, Glassware — and Decorating Divi-

sion. (See American Glassware.)

894

Code no.

Industry

Date

Volume

Page

256

Cutting, Schiffli, the Hand Machine Embroid-
ery, and the Embroidery Thread and

Scallop

2- 2-34

133

Cycle Jobbers Division. (See Wholesaling or

Distributing Trade.)

358

Cylinder Mould and Dandy Roll

3-23-34

VIII

397

252

Cylindrical Liquid Tight Paper Container

Daily Newspaper Publishing and Printing.
(See Graphic Arts.)

2- 1-34

288

Daily Newspaper Publishing Business

2-17-34

VII

Amendment, No. 1

2-24-34

VII

639

140

Dampproofing, Waterproofing, — Caulking

Compounds, and Concrete Floor Treat-

ments Manufacturing

11-27-33

III

497

Decalcomania and Transparency. (See

Graphic Arts.)

Decorating, Glassware Cutting and — Divi-

sion. (See American Glassware.)

Decorative Fabrics, Upholstery and — Divi-

sion. (See Wholesaling or Distributing

Trade.)

Delegation of Authority. (See Administra-

tion— Executive Orders.)

Delivery, Banana and Dry Cleaner or Gar-

ment — Bag Division. (See Paper Bag

•

Manufacturing.)

Denial of Application for Exemption. (See

Artificial Flower and Feather — Coat and

Suit — Corset and Brassiere — Cotton Tex-

tile — Lumber and Timber Products.)

Dental, Industrial, Jewelers' and — Brush

Manufacturers' Division. (See Brush Man-

ufacturing.)

217

Dental Laboratory

1-22-34
10-20-33

283

Devices, Marking

Diamond Core Drill Manufacturing Subdi-

*»

vision. (See Machinery and Allied Prod-

ucts.)

323

Die Casting Manufacturing

3- 8-34

VII

527

221

Die, Metal Hat — and Wood Hat Block

Diesel Engine Manufacturing Subdivision.
(See Machinery and Allied Products.)

1-23-34

347

122

Die, Special Tool — and Machine Shop

11-17-33

III

187

250

Die, Wire, Rod, and Tube

2- 1-34
2- 1-34

VI
VI

246

Disc, Paper — Milk Bottle Cap

247

Dish, Food ■ — and Pulp and Paper Plate

2- 1-34

334

Dispensing, Beverage — Equipment (see also

Beverage Dispensing Equipment)

3-16-34

VIII

240

Display, Advertising — Installation

1-30-34

601

Display Board, Cork Bulletin and — Manu-

facturers Division. (See Cork.)

110

Distillation, Hardwood (see also Hardwood

Distillation)

11-10-33

661

Distilled Spirits (Labor Provisions)

3-21-34

VIII

719

297

Distributing, Advertising — Trade

2-17-34

VII

187

223

Distributing, Construction Machinerv —

Trade

1-23-34

369

176

Distributing, Paper — Trade

12-23-33

375

201

Distributing, Wholesaling or — Trade

1-12-34

Distributors, Industrial Supplies and Ma-

chinery Trade _

10-23-33

337

Dock, Coal (see also Coal Dock)

Documents, prescribing rules for certification

3-16-34

VIII

11-18-33

III

656

895

Industry

Dolomite Division. (See Lime Industry
Amendment, No. 1.)

Domestic Freight Forwarding

Door, Rolling Steel

Dragline, Shovel — and Crane

Dramatic, Legitimate Full Length — and

Musical Theatrical

Draperies, Novelty Curtain — Bedspreads

and Novelty Pillow

Drapery and Upholstery Trimming

Drapery, Curtain and — Fabrics Division.

(See Cotton Textile Supplement, No. 1.)
Drapery, Upholstery and — Textile. (See
Upholstery and Drapery Textile.)

Dressings, Surgical

Dress Manufacturing

Definition of areas, hours, and wages for

the — Industry

Stay for the — Industry and Cotton

Garment Industry

Dress, Milinery and — Trimming Braid and

Textile

Drill, Diamond Core — Manufacturing Sub-
division. (See Machinery and Allied
Products.)
Drinking, Bulk Drinking Straw, Wrapped —
Straw, Wrapped Toothpick, and Wrapped
Manicure Stick (see also Bulk Drinking
Straw, Wrapped Drinking Straw, Wrapped
Toothpick, and Wrapped Manicure Stick)

Drug, Retail — Trade

Drug store, Stay. (See Retail Trade.)

Dry and Polishing Mop Manufacturing

Dry, Banana and — Cleaner or Garment
Delivery Bag Division. (See Paper Bag
Manufacturing.)
Dry Cleaning, Laundry and — Machinery

Manufacturing

Dryer, Kiln, Cooler, and — Manufacturing
Subdivision. (See Machinery and Allied
Products.)
Dry Goods Division. (See Wholesaling or

Distributing Trade.)
Dry Ground Mica Division. (See Mica.)
Dry Transfer Manufacturers. (See Graphic
Arts.)

Dyeing, Cleaning and — Trade

Dyeing, Rayon and Silk — and Printing

Temporary Code Approved

Earthenware Manufacturing

Clay Flower Pot Division

Earthenware Division

Stoneware Division

Earth, Fuller's — Producing and Marketing
(see also Fuller's Earth Producing and

Marketing)

Effect on Cooperatives of Codes of Fair Com-
petition

Elastic, Woven — Division. (See Narrow
Fabrics.)

Electrical Manufacturing

Wire and Cable Subdivision, Granting
exemption to the

Date

Volume

12-18-33
12-21-33
11- 8-33

IV
IV

8-16-33

11- 1-33
1-16-34

1-27-34
10-31-33

12-14-33

10-21-33

3-14-34
10-21-33

VIII

12-15-33

10- 3-33

11- 8-33
12-21-33
7-22-33
3- 8-34
3- 8-34
3- 8-34
3- 8-34

VII
VII
VII
VII

3-23-34

VIII

2-17-34

VII

8- 4-33

3-13-34

VIII

896

Code no.

Industry

Date

40
179

276
256

186

180

324
220

105
286
334

39
264
315

139

Electrical, Structural and — Division. (See
Slate.)

Electrical Supplies Division. (See Wholesal-
ing or Distributing Trade.)

Electric Industrial Truck Manufacturing
(see also Fabricated Metal Products Manu-
facturing and Metal Finishing and Metal
Coating Supplement, No. 4)

Electric Storage and Wet Primary Battery. _.

Electrotyping and Stereotyping

Amendment, No. 1

Elevator Manufacturing (see Construction)-.

Emblems. (See Administration — Athletic
Goods Manufacturing.)

Embroidery and Lace Division. (See Whole-
saling or Distributing Trade.)

Embroidery, Pleating, Stitching, and Bonnaz
and Hand

Embroider}7, Schiffli, the Hand Machine —
and the Embroider}7 Thread and Scallop
Cutting

Empty Picture Frame Division. (See Picture
Moulding and Picture Frame.)

Enameled Cast Iron Plumbing Fixtures Div-
sion. (See Plumbing Fixtures.)

End Grain Strip Wood Block

Enforcement of Section 7 (a) of the National
Industrial Recovery Act

Engine, Diesel — Manufacturing Subdivision.
(See Machinery and Allied Products.)

Engine, Hoisting — Manufacturing Subdivi-
sion. (See Machinery and Allied Products.)

Engraving, Photo

Engraving, Steel and Copperplate — and
Printing. (See Graphic Arts.)

Engraving, Textile Print Roller

Envelope

Envelope, Church — System. (See Graphic
Arts.)

Envelope Machine Manufacturing Subdivi-
sion. (See Machinery and Allied Products.)

Equipment, Automotive Parts and — Ma-
chinery

Equipment, Beauty and Barber Shop Me-
chanical — Manufacturing

Equipment, Beverage Dispensing (see Bever-
age Dispensing Equipment)

Equipment, Business Furniture, Storage —
and Filing Supply

Equipment, Fabric Auto — Division. (See
Light Sewing Industry Except Garments.)

Equipment, Farm

Equipment, Foundry

Equipment, Industrial Safety — Industry
and Industrial Safety Equipment Trade

Equipment, Machine Tool and Distributors.

Equipment, Office — Manufacturers

Equipment, Painters and Paperhangers Tool
— Section. (See Cutlery, Manicure Im-
plement and Painters and Paperhangers
Tool Manufacturing and Assembling Sup-
plement.)

1-31-34

10- 3-33

12-23-33

2-17-34

3-21-34

2-10-34
2- 2-34

12-30-33
2- 1-34
2-23-34

Volume

12-23-33 IV

VII

VIII

VI
VI

VII

3- 8-34
1-23-34

11-8-33
2-16-34
3-16-34
11-4-33

10-3-33
2-6-34

3-1-34

11-27-33

11-4-33

VII
V

VIII

VI
VII

III
II

Page

751
499
415
623
803

403
133

511
652
708

429

539
331

599

569

383

489
255

421
485
413

897

Code no.

Industry

Date

Volume

Page

Equipment, Petroleum — Industry and Trade
(American) _ _ _ _ __

11-2-33
2-2-34
1-6-34

339

257
197

Equipment, Printing — Industry and Trade. _
Equipment, Retail Farm — Trade _

151
17

Equipment. (See Athletic Goods Manu-
facturing.)
Equipment, Steam Heating

279

2-12-34
12-15-33

1-6-34

12-7-33
11-4-33

12-21-33
6-16-33

12-30-33

11-4-33
11-27-33
11-18-33

10-11-33

9- 7-33

9-29-33

8-10-33

3-14-34

10-23-33
2-17-34

9-18-33

7-27-33

11- 6-33

VI
IV

III
II

II
III
III

I
I

VIII

VII

455

158

Equipment, Stone Finishing Machinery and___
Establishment and use of Official N.R.A.
Bulletin Board

129

768

146

Establishment of Trade Zones. (See Ferti-
lizer.)
Excelsior and Excelsior Products

565

Exchange, Stock — Firms

481

Executive Orders:

Administration, Providing for notice of
proceedings and matters in the — of
the National Industrial Recovery Act_ _

Administrator, Appointment of — and
Special Industrial Recovery Board

Administrator, Delegating further func-
tions and powers to the — for Indus-
trial Recovery

687
711

689

Artificial Flower and Feather, Denial of
application of Kaplan Brothers for
exemption from — Industry- _ .

701

Bribery, Commercial — provisions to be
included in codes heretofore approved- _

Certification, Prescribing Rules for — of
Documents _

659
656

Coat and Suit, Denial of application of
Associated Cloak and Suit Manufac-
turers of Portland, Oreg., for exemp-
tions from the — Industry

735

Coat and Suit, Denial of application of
Connecticut Garment Manufacturers
Association for exemptions from the —
Industrv _ _ _

731

Code authority, Appointment of Hugh S.
Johnson to serve temporarily as mem-
ber of each

733

Contractors, Compliance by Government
— with approved codes of fair compe-
tition

729

Contracts, Government — and Con-
tracts involving the use of Govern-
ment Funds _

859

Cooperative organizations, Defining ef-
fect of certain provisions in the Codes
of Fair Competition upon

698

Cooperatives, Effect on — of Codes of
Fair Competition

Corsets and Brassiere, Denial of applica-
tion of Gem-Dandy Garter Co. for ex-
emptions from the — Industry

Cotton Textile, Cordage and Twine In-
dustry temporarily placed under the
— Industry

Cotton Textile, Denial of application
by — Industry for further exemption
from "Machine Hours" on tire yarns
and fabrics

705
732

725

702

898

Code no.

Industry

Date

Volume

Page

Executive Orders — Continued

Cotton Textile, Denial of application of

Alabama Mills Co. for exemptions from

the — Industry

8- 4-33

728-

Cotton Textile, Denial of application of

Crystal Springs Bleachery for exemp-

tions from the — Industry

8- 4-33

726

Cotton Textile, Denial of application of

Dwight Manufacturing Co. for exemp-

tions from the — Industry

8- 4-33

727

Cotton Textile, Denial of application for

exemption from — Industry

12- 4-33

III

661

Cotton Textile, Disapproval of exception

and termination of stay under the code

of fair competition for the — Industry _

11- 6-33

685

Cotton Textile, Extending termination

date of stay limiting machine hours

in — Industry

11-27-33

III

658

Cotton Textile, Extension of stay limit-

ing machine hours in — Industry as

applying to rubber-tire yarns

11-13-33

III

655

Cotton Textile, Modification of Execu-

tive Order of July 27, 1933, placing the

Cordage and Twine Industry tempora-

rily under — Industry

10-20-33

695

Cotton Textile, National Council of

Pajama Manufacturers temporarily

placed under the — Industry

7-26-33

723

Delegation of Authority, Rules and Reg-

ulations under Section 10 (a) and —

under Section 2 (b) of the National In-

dustrial Recovery Act

10-14-33

646

Enforcement of Section 7 (a) of the Na-

tional Industrial Recovery Act

2- 1-34

652

Enforcement of Section 7 (a) of the Na-

tional Industrial Recovery Act

2-23-34

VII

708

Garment Manufacturers, International

Association of — temporarily placed

under Cotton Textile Industry

7-26-33

722

Hearings, Authorization of Administra-

tor to appoint personnel, fix compen-

sations, and conduct

7-15-33

763

Hosiery manufacturers, Temporary ap-

proval given to certain provisions of a

code of fair Competition to be sub-

mitted by national association of_

7-26-33

719

Labor Provisions, Prescribing Rules and

Regulations for the Interpretation and

Application of Certain — of Codes of

Fair Competition as they may affect

Handicapped Workers

2-17-34

VII

706

Lumber and Timber Products, Denial

of application of Greensboro Lumber

Company for exemptions from the —

Industry

10-20-33

696

Modify Agreements, Authorizing Ad-

ministrator to — entered into or ap-

proved by the President under Title I

of the National Industrial Recovery

Act

11-22-33

III

657

•

National Industrial Recovery, Expendi-

tures out of allocations from the appro-

priation for

3-27-34

VIII

86S

899

Code no.

Industry

Executive Orders — Continued

National Labor Board, Continuance of
the — , Etc

Petroleum, Administration of the —
Industry given to Secretary of the
Interior

Petroleum, Prohibition of transporta-
tion in interstate and foreign commerce
of — and the products thereof unlaw-
fully produced or withdrawn from
storage

Petroleum, Prohibition of transportation
in interstate and foreign commerce
of — and the products thereof unlaw-
fully produced or withdrawn from
storage (with authorization)

Reemployment Agreement, Exemption
from the President's — of employers
in towns of less than 2,500 population.

Reemployment Agreement, Modification
of President's

Retail Trade, Extension of effective date
of Code of Fair Competition for the__.

Review Board, Creation of the National
Recovery

Review Board, Funds for the National
Recovery

Secretary of Agriculture, Amendment of
Executive Orders which Delegated to
the — Certain Authority under the
National Industrial Recovery Act

Secretary of Agriculture, Amendment of
Executive Orders which Delegated to
the — certain Authority under the Na-
tional Industrial Recovery Act

Secretary of Agriculture, Continuing in
effect the Authority Delegated to the

— by Executive Order No. 6182

Secretary of Agriculture, Delegation of

certain functions and powers to

Silk and Rayon Dyeing and Printing In-
dustry, Temporary approval given to
certain section of a submitted code of
fair competition for the — Industry. _.

Special Adviser on Foreign Trade, Estab-
lishing the office of

Statistical Board, Appointment of Cen-
tral

Statistical, Providing for Submission of

— Information by Persons subject to
Codes of Fair Competition

Stay, Authority granted to Administrator
to ■ — - application of codes within 10
days after effective date

Tariff relief, Procedure to be followed for

— under Section 3 (e) of the National
Industrial Recovery Act

Textile Finishing Industry temporarily
placed under Cotton Textile Industry,

Underwear and Allied Products Industry
temporarily placed under Cotton Tex-
tile Industry

Date

Volume

12-16-33

8-29-33

7-11-33

7-14-33

10-23-33

10-11-33

11-27-33

III

3- 7-34

VII

3- 9-34

VII

1- 8-34

1-20-34

7-21-33

6-26-33

7-22-33

3-23-34

VIII

7-27-33

12- 7-33

III

7-15-33

10-23-33

7-21-33

Page

648
730

713

714

699
734
660
709
710

649

647

645
712

718
861
724

662

715

700

716
717

900

Industry

Date

Volume

Page

697

686

782

VII

726

VII

727

699

VI
VIII

659
553

511

327

703

727

739

751

637

VII

677

VIII
VIII
VIII
VIII
VIII

747
747
747

747

VIII
VIII

747

VIII

779

VIII

811

VIII
VIII

823

VIII

823

Executive Orders — Continued.

Un derwear and Allied Products Manufac-
turing, Extension of stay for — Indus-
try .

Upholstery and Drapery Textile, Further
extension of time for certain manufac-
turers to elect not to be bound under
the code of fair competition for the —

Industry

Exemption. (See Cement — Electrical Man-
ufacturing— Fishing Tackle — Retail Trade
— Shipbuilding and Shiprepairing.)
Exemption, Granting limited — from provi-
sions of Codes of Fair Competition in con-
nection with sales to Hospitals

Exemption, Granting permanent stay of —
from Codes of Fair Competition in connec-
tion with sales to Hospitals for certain In-
dustries

Exemption, Granting Sheltered Workshops
Conditional — from Codes of Fair Competi-
tion

Exemptions from the President's Reemploy-
ment Agreement of employers in towns less

than 2,500 in population

Exemption, Stay of order granting limited —
from provisions of codes of fair competition

in connection with sales to hospitals

Expanding and Specialty Paper Products

Extinguishing, Fire — Appliance Manufac-
turing

Fabricated Metal Products Manufacturing

and Metal Finishing and Metal Coating

Supplement, No. 1, for Metallic Wall

Structure Industrial Subdivision

Supplement, No. 2, for Hand Chain Hoist

Manufacturing

Supplement, No. 3, for Chain Manu-
facturing

Supplement, No. 4, for Electric Industrial

Truck Manufacturing

Supplement, No. 5, for Railway Car

Appliances

Supplement, No. 6, for Shoe Shank

Manufacturing

Supplement, No. 7, for Tool and Imple-
ment Manufacturing

Axe Division

Hammers Division

Hatchet Division

Scythe and Snathe Division

Shovel and Post Hole Digger Divi-
sion

Steel Goods Division

Supplement, No. 8, for Hack Saw Blade

Manufacturing

Supplement, No. 9, for Forged Tool

Manufacturing

Supplement, No. 10, for Cutlery, Mani-
cure Implement and Painters and
Paperhangers Tool Manufacturing and

Assembling

Manicure Implement Section

Painters and Paperhangers Tool
Equipment Section

10-20-33

12-11-33

11-23-34

3- 3-34

10-23-33

2- 2-34
3-26-34

11- 4-33

11- 2-33

1-10-34

1-30-34

1-31-34

2- 9-34

2-21-34

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

3-15-34
3-15-34

3-17-34

3-24-34

3-26-34
3-26-34

3-26-34

901

Industry

Date

Volume

Fabricated Metal Products, etc. — Continued.
Supplement, No. 10, etc. — Continued.

Pocket Knife Section

Scissors and Shears Section

Straight Razor Section

Table and Trade Knife Section

Supplement, No. 11, for Tackle Block

Manufacturing

Supplement. No. 12, for Power and Gang

Lawn Mower Manufacturing

Fabricating, Reinforcing Materials

Fabric Auto Equipment Division. (See
Light Sewing Industry Except Garments.)
Fabrics, Automobile — Proofing and Back-
ing Division. (See Rubber Manufactur-
ing.)
Fabrics, Corset, Brassiere, and Allied
Trades — Division. (See Cotton Textile
Supplement, No. 1.)
Fabrics, Curtain and Drapery — Division.
(See Cotton Textile Supplement, No. 1.)

Fabrics, Narrow

Fabrics, Upholstery and Decorative — Divi-
sion. (See Wholesaling or Distributing
Trade.)

Fabric, Slit — Manufacturing

Face, Window — Bag Division. (See Paper
Bag Manufacturing.)

Fan and Blower

Fancy, Glazed and — Paper

Farm Equipment

Amendment, No. 1

Farm, Retail — Equipment Trade

Fastener, Slide

Feather, Artificial Flower and

Feldspar

Felt Base, Linoleum and — Manufacturers.-.

Felt, Hair and Jute

Felt. (See Hat Manufacturing.)

Felt, Wool — Manufacturing

Fertilizer

Zones, Establishment of Trade — for

the — Industry

Fiber and Metal Work Clothing Button Man-
ufacturing

Fiber, Corrugated and Solid — Shipping Con-
tainer

Fibre Can and Tube

Fibre Wallboard

Field Athletics. (See Athletic Goods Manu-
facturing.)
Filing, Business Furniture, Storage Equip-
ment and — Supply

Filter, Air — Subdivision. (See Machinery

and Allied Products.)
Filter, Water Softener and — Subdivision.

(See Machinery and Allied Products.)
Fine Goods. (See Cotton Textile.)
Finishing Branch. (See Cotton Textile.)
Finishing, Fabricated Metal Products Manu-
facturing and Metal — and Metal Coating- _
Finished Moulding Division. (See Picture
Moulding and Picture Frame.)

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

3-26-34

3-26-34
11-27-33

2-27-34

1-16-34

1-30-34

2- 1-34

10- 3-34

12-21-33

1- 6-34
1-31-34
9-18-33
1-16-34
9-18-33

10-31-33

11-27-33
10-31-33

2-26-34

3-17-34

2- 1-34
2-24-34
3-10-34

11- 4-33

VIII
VIII
VIII
VIII

VIII

VIII
III

VII

I
II

III
II

VII

VIII

VI
VII
VII

11- 2-33

902

Industry

Date

Volume

Finishing, Photographic and Photo (see also
Photographic and Photo Finishing)

Finishing, Stone — Machinery and Equip-
ment

Finishing, Textile — , temporarily placed
under Cotton Textile Industry

Finishing, Trade Mounting and. (See
Graphic Arts.)

Finish, Shoe and Leather — , Polish and Ce-
ment Manufacturing

Firebox, Steel Tubular and — Boiler

Fire Clay. (See Refractories.)

Fire Extinguishing Appliance Manufactur-
ing

Fire, Motor — Apparatus Manufacturing. _.

Firms, Stock Exchange

Fishery

Supplement, No. 1 (for Fresh Oyster)...

Fishing Tackle

Amendment, No. 1

Amendment, No. 2

Hours, Approval of exception as to — of
work of watchmen in the

Fitted Picture Frame Division. (See Picture
Moulding and Picture Frame.)

Fittings, Sanitary Brass Plumbing — Divi-
sion. (See Plumbing Fixtures.)

Fittings, Valve and — Manufacturing

Fixtures. (See Plumbing Fixtures.)

Flag Manufacturing

Flatware. (See Silverware Manufacturing.)

Floor and Wall Clay Tile Manufacturing. __.

Floor Covering Division. (See Wholesaling
or Distributing Trade.)

Floor, Furniture and — Wax and Polish

Flooring, Rubber — Division. (See Rubber
Manufacturing.)

Floor Tile, Cork — Manufacturers Division.
(See Cork.)

Floor, Waterproofing, Dampproofing, Caulk-
ing Compounds and Concrete — Treat-
ments Manufacturing

Flower, Artificial — and Feather

Flower Pot, Clay — Division. (See Earthen-
ware Manufacturing.)

Fluted Cup, Pan Liner and Lace Paper

Folding Paper Box

Food Container, Open Paper Drinking Cup
and Nesting Paper (see also Open Paper
Drinking Cup and Round Nesting Paper
Food Container)

Food Dish and Pulp and Paper Plate

Food, Open Paper Drinking Cup and Round
Nesting Paper — Container (see also Open
Paper Drinking Cup and Round Nesting
Paper Food Container)

Food, Retail — and Grocery Trade (see also
Retail Food and Grocery Trade)

Food, Wholesale — and Grocery Trade (see
also Wholesale Food and Grocery Trade)-.

Football. (See Athletic Goods Manufactur-
ing-)

Footwear, Rubber — Division. (See Rubber
Manufacturing.)

3-23-34

12-15-33

7-21-33

12-30-33
10-23-33

11- 4-33

11- 8-33

11- 4-33

2-26-34

3-10-34

8-19-33

11-14-33

3-21-34

10- 7-33

12-15-33

3-21-34

11- 4-33

1-23-34

VIII
IV

IV
II

VII

VIII

IV
VIII

11-27-33
9-18-33

III

2-17-34
12-30-33

VII
IV

3-26-34
2- 1-34

VIII
VI

3-26-34

VIII

12-30-33

1- 4-34

Code no.

Industry

Date

Volume

Page

Foreign Trade, Establishing the office of spe-
cial Adviser on ____

3-23-34

3-24-34
11- 8-33

2- 6-34
12-18-33

2- 5-34

1-16-34

3-10-34
2-26-34

2-14-34
3-23-34

3- 9-34

3-14-34

11- 4-33

2- 8-34

11- 8-33
12-18-33

3-23-34

11-27-33

1-23-34

11- 4-33

12- 7-33
2- 5-34

1-12-34
1-30-34

2-16-34
12-15-33

11-17-33
7-26-33

1-23-34

11- 4-33
11-27-33

VIII
VIII

VI
IV
VI

VII
VII

VI
VIII

VII

VIII

IV
VIII

III

II
III

V
V

VI
IV

III
I

II
III

861

103

264

Forged Tool Manufacturing (see also Fabri-
cated Metal Products Manufacturing and
Metal Finishing and Metal Coating)

Forging, Machine Tool and — Machinery

Forms, Standardized Stationery and Busi-
ness. (See Graphic Arts.)

Foundry Equipment - _ _ _

811

577

255

165

Foundry, Non-Ferrous

211

261

Foundry Supply _

219

208

310
280

Frame, Picture Moulding and Picture (see
also Picture Moulding and Picture Frame) _
French, Worsted Spinners — ■ System, Divi-
sion. (See Wool Textile Amendment, No.
1.)
Fresh Oyster (Fishery Supplement, No. 1)__

Fresh Water Pearl Button Manufacturing

Fuel, Charcoal and Packaged — Division.

(See Wholesaling or Distributing Trade.)
Fueling, Vessel — Division. (See Coal Dock.)
Fuel, Retail Solid • _ __

175

693
359

469

356

Fuller's Earth Producing and Marketing

Funds for the National Recovery Review
Board

377
710

Funds, Government contracts and contracts
involving the use of government

859

Funeral Supply

421

Amendment, No. 1 -

619

Funeral Vehicle, Supplement, No. 1, to Auto-
mobile Manufacturing . _

671

161

Fur Dressing and Fur Dveing .

161

357

137
224

Fur-felt. (See Hat Manufacturing.)
Furnace, Blast — Castings Division. (See

Non-Ferrous Foundry.)
Furnace, Industrial — Manufacturing (see

also Industrial Furnace Manufacturing) __

Furnace, Warm Air — Manufacturing

Furniture and Floor Wax and Polish

Furniture, Business — , Storage Equipment

and Filing Supplies

387

461

'381

383

145

Furniture Manufacturing

551

Amendment, No. 1

611

Stay, Temporary — of Articles III, IV, and V
for the — Industry

774

239
283

Furniture, Porcelain Breakfast — Assembling.
Furniture, Ready- Made — Slip Covers Man-
ufacturing

587
527

160

Furriers' Supplies Division. (See Whole-
saling or Distributing Trade.)
Fur Trapping Contractors -

151

118

Garment, Banana and Dry Cleaner or —
Delivery Bag Division. (See Paper Bag
Manufacturing.)
Garment, Cotton (see also Cotton Garment) _ _
Garment Manufacturers, temporarily placed

77
722

226
94

Garments. (See Cotton Garment — Whole-
saling or Distributing Trade.)

Garments, Light Sewing Industry Except

Garter, Men's — , Suspender and Belt Manu-
facturing (see Men's Garter, Suspender,
and Belt Manufacturing)

403
471

134

Gas Appliances and Apparatus

421

904

Code no.

Industry

Date

Volume

Page

Gas Cock

10-31-33
11- 8-33

II
II

157

104

Gas, Liquefied

587

Gasoline Pump Manufacturing

9-18-33

349

Amendment, No. 1 . _

12-21-33
11-14-33

IV
III

661

117

Gear Manufacturing

General Contractors (Construction Supple-

ment, No. 1)

2-17-34

VII

667

Glass Container

10- 3-33

457

Amendment, No. 1

2- 1-34

587

Glass House Refractories Division. {See

Refractories.)

Glassine Bag Division. {See Paper Bag

Manufacturing.)

215

Glassware, American {see also American

Glassware)

1-16-34
2- 1-34

257

248

Glazed and Fancy Paper

Globes, Lamp Chimneys and Lantern —

Division. {See American Glassware.)

187

Glove, Cotton Cloth — Manufacturing {see

also Cotton Cloth Glove Manufacturing) _ _

12-30-33

525

Glove, Leather and Woolen Knit

11- 4-33

367

Glycerine, Soap and — Manufacturing

Golf. (See Athletic Goods Manufacturing.)

11- 2-33

317

254

Goods, Athletic — Manufacturing

2- 2-34

107

Goods, Luggage and Fancy Leather

10- 3-33

519

Goods, Mechanical Rubber — Division.

{See Rubber Manufacturing.)

Goods, Wash — Division. {See Cotton Tex-

tile Supplement, No. 1.)

287

Graphic Arts

2-17-34

VII

Advertising Newspaper Appendix

2-17-34

VII

Advertising Topography Appendix

2-17-34

VII

Bank and Commercial Stationery Ap-

pendix

2-17-34

VII

Book Manufacturing Appendix

2-17-34

VII

Church Envelope System Appendix

2-17-34

VII

Commercial Relief Printing Appendix

2-17-34

VII

Cover Manufacturing Appendix

2-17-34

VII

Daily Newspaper Publishing and Print-

ing Appendix

2-17-34

VII

Decalcomania and Transparency Ap-

pendix

2-17-34

VII

Dry Transfer Manufacturing Appendix. _

2-17-34

VII

Gravure Printing Appendix

2-17-34

VII

Greeting Cards Appendix

2-17-34

VII

Labels Appendix

2-17-34

VII

Law Printers Appendix

2-17-34

VII

Library Binding Appendix

2-17-34

VII

Lithographic Printing Appendix

2-17-34

VII

Map Publishers Appendix

2-17-34

VII

Music Printing Appendix

2-17-34

VII

Non-Metropolitan Newspaper Publish-

ing and Printing Appendix

2-17-34

VII

Periodical Publishing and Printing Ap-

pendix

2-17-34

VII

Photo-Lithographing Appendix

2-17-34

VII

Picture Publishing and Picture Importers

Appendix

2-17-34

VII

Playing Cards Appendix

2-17-34

VII

Posters Appendix

2-17-34

VII

Securities Engraving and Printing Ap-

pendix

2-17-34

VII

Standardized Stationery and Business

Forms Appendix

2-17-34

VII

Steel and Copperplate Engraving and

Printing Appendix

2-17-34

VII

905

Industry

Date

Volume

Graphic Arts — Continued.

Textile and Hosiery Packing Manufac-
turers Appendix

Ticket and Coupon Appendix

Trade Binding and Paper Ruling Ap-
pendix

Trade Lithographic Plate Making Ap-
pendix

Trade Mounting and Finishing Appendix.

Trade Typesetting Appendix

Amendment, No. 1

Gravel, Crushed Stone, Sand and — , and

Slag

Gravel, Administrative approval of Indus-
trial Sand Division of the Crushed Stone,

Sand and — , and Slag Industries

Gravure Printing. (See Graphic Arts.)

Gray Iron Foundry

Greeting Cards. (See Graphic Arts.)

Grinding Wheel

Grocery Bag Division. (See Paper Bag

Manufacturing.)
Grocery, Retail Food and — Trade (see also

Retail Food and Grocery Trade)

Grocery, Wholesale Food and — Trade (see
also Wholesale Food and Grocery Trade) _ .

Gum, Chewing

Gummed Label and Embossed Seal

Gumming

Hack Saw Blade Manufacturing (see also
Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating)-.

Hair and Jute Felt

Hair, Animal Soft

Hair Clipper Manufacturing Subdivision.
(See Machinery and Allied Products.)

Hair Cloth Manufacturing

Hammers Division. (See Tool and Imple-
ment Manufacturing Industry Supple-
ment.)
Handbag, Ladies' (see also Ladies' Handbag) _ .
Handball. (See Athletic Goods Manufactur-
ing.)
Hand Chain Hoist Manufacturing (see also
Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating

Supplement, No. 2)

Handicapped Workers, Prescribing Rules and
Regulations for the Interpretation and
Application of Certain Labor Provisions of
Codes of Fair Competition as they may

affect

Handkerchief

Hand Made Bag, Wholly or Semi — Division.

(See Paper Bag Manufacturing.)
Hard Rubber Division. (See Rubber Manu-
facturing.)
Hardware Division. (See Wholesaling or
Distributing Trade.)

Hardwood Distillation

Amendment, No. 1 1

Hatchet Division. (See Tool and Implement

Manufacturing Industry Supplement.)
Hat Die, Metal — and Wood Hat Block

2-17-34
2-17-34

2-17-34

2-17-34
2-17-34
2-17-34
2-24-34

11-10-33

12-27-33

2-10-34

12-21-33

12-30-33

1- 4-34
1-30-34
2-17-34
2-17-34

3-17-34

10-31-33

2- 2-34

12-15-33

3-14-34

1-30-34

2-17-34
10- 9-33

11-10-33
3-21-34

1-23-34

VII
VII

VII

VII
VII
VII
VII

IV
VI
IV

VII

VIII
II
VI

VIII

VII

VIII

51699—34-

-20

906

Industry

Hat Manufacturing

Felt Division

Fur-felt Division

Silk Division

Straw Division

Wool-Felt Division

Hats and Caps Division. (See Wholesaling
or Distributing Trades.)

Hazardous Occupation. (See Men's Garter,
Suspender and Belt Manufacturing — Used
Textile Bag — Wool Felt Manufacturing.)

Hearings, Authorization of Administrator to
appoint personnel, fix compensations and
conduct

Heater, Unit — and/or Unit Ventilator
Manufacturing

Heat Exchange

Heating, Cooking and — ■ Appliance Manu-
facturing

Heating, Steam — Equipment

Heel and Sole Division. (See Rubber Manu-
facturing.)

Heel, Wood

Hide and Leather Working Machine

High Temperature Bonding Mortars Division.
(See Refractories.)

Hockey. (See Athletic Goods Manufactur-
ing.)

Hoist Builder's Subdivision. (See Machinery
and Allied Products.)

Hoist, Hand Chain — Manufacturing (see also
Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating
Supplement, No. 2)

Hoisting Engine Manufacturing Subdivision.
(See Machinery and Allied Products.)

Hollow Ware. (See Silverware Manufactur-
ing.)

Horseshoe and Allied Products Manufactur-

ing.

Hosiery

Amendment, No. 1

Amendment, No. 2

Temporary code approved

Changes, Temporary — of Article IV for

the — Industry.."

Hosiery Packing, Textile and — Manufac-
turers. (See Graphic Arts.)
Hospitals, Granting limited exemption from
provisions of Codes of Fair Competition in

connection with sales to

Hospitals, Granting permanent stay of exemp-
tion from Codes of Fair Competition in
connection with sales to — for certain In-
dustries

Hospitals, Stay of order granting limited ex-
emption from provisions of codes of fair
competition in connection with sales to

Hotel

Amendment, No. 1

Stay for the — Industry

Stay of wage-hours provisions for the —

Industry

Hotelware, Flatware, and Hollow Ware Divi-
sion. (See Silverware Manufacturing.)

Date Volume Page

2-
2-
2-
2-
2-
2-

5-34

5-35

5-34

5-34 i

5-34

7-15-33

2-10-34
10-11-33

1-30-34
2-12-34

2- 9-34

3- 6-34

1-30-34

3- 8-34
8-26-33
2- 2-34
2- 5-34
7-26-33

12-14-33

1-23 34

3- 3-34

VI
VI
VI
VI
VI
VI

VI
I

V
VI

VI
VII

VII

2- 2-34
11-17-33

2-26-34
12-29-33

III

VII

12- 2-33

907

Code no.

Industry

Date

Volume

Page

Hot Top, Ladle and — Refractories Divi-

sion. (See Refractories.)

Hours. (See Cotton Textile — Dress Manu-

facturing — Fishing Tackle — Hotel —

Leather and Woolen Knit Glove — Milli-

nery — Shipbuilding and Shiprepairing —

Silk Textile.)

House, Glass — Refractories Division. (See

Refractories.)

Household Brush Manufacturers' Division*

(See Brush Manufacturing.)

1S3

Housenold Ice Refrigerator

12-30-33

473

Hydraulic Machinery Subdivision. (See Ma-

chinery and Allied Products.)

Ice

10- 3-33

529

183

Ice, Household — Refrigerator

Illuminating Glassware Division. (See Amer-
ican Glassware.)

Implement, Cutlery, Manicure — and Paint-
ers and Paperhangers Tool Manufacturing
and Assembling (see also Fabricated Metal
Products Manufacturing and Metal Finish-

12-30-33

473

ing and Metal Coating)

3-26-34

VIII

823

Implement, Tool and — Manufacturing (see

also Fabricated Metal Products Manufac-

turing and Metal Finishing and Metal

Coating)

3-15-34

VIII

747

Importers, Picture Publishing and Picture.

(See Graphic Arts.)

Importing Division. (See Mica.)

Industrial. (/See Administration.)

357

Industrial Furnace Manufacturing

3-23-34

VIII

387

Industrial Glassware, Technical and — Divi-

sion. (&ee American Glassware.)

Industrial, Railway and — Spring Manufac-

turing Subdivision. (See Machinery and

Allied Products.)

315

Industrial Safety Equipment Industry and

Industrial Safety Equipment Trade

3- 1-34

VII

421

Industrial Sand Division, Administrative ap-

proval of — of the Crushed Stone, Sand and

Gravel, and Slag Industries

12-27-33

707

Industrial Subdivision, Metallic Wall Struc-

ture (see also Fabricated Metal Products

Manufacturing and Metal Finishing and

Metal Coating Supplement, No. 1)

1-10-34

703

Industrial Supplies and Machinery Distribu-

tors Trade 1

10-23-33

173

Industry Engaged in the Smelting and Refin-
ing of Secondary Metals into Brass and

Bronze Alloys in Ingot Form

12-21-33

325

373

Infants' and Children's Wear

3-27-34

VIII

607

Information, providing for submission of Sta-

tistics by Persons subject to Codes of Fair

Competition

12- 7-33

III

662

339

Ink, Printing — Manufacturing (see also

Printing Ink Manufacturing)

3-16-34

VIII

127

266

Inland Water Carrier Trade in the Eastern
Division of the United States Operating

Via the New York Canal System

2- 6-34

11-14-33

1-30-34

III

281

112

Insect, All-Metal — Screen, _*

240

Installation, Advertising Display

601

273

Instrument, Band — Manufacturing

2-10-34

369

353

Insulation Board

3-22-34

VIII

331

908

Industry

Insulation, Cork — Manufacturers Division.

(See Cork.)
Insulator, Wooden — Pin and Bracket Manu-
facturing {see also Wooden Insulator Pin and

Bracket Manufacturing)

Interlinings Division. (See Cotton Textile

Supplement, No. 1.)
Interpretation, Prescribing Rules and Regu-
lations for the — and Application of certain
Labor Provisions of Codes of Fair Compe-
tition as they may affect Handicapped

Workers

Investment Bankers

Amendment, No. 1

Amendment, No. 2

Iron and Steel

Iron, Cast — Boiler and Cast Iron Radiator- _

Iron, Cast — Pressure Pipe

Iron, Cast — Soil Pipe

Iron, Enameled Cast — Plumbing Fixtures
Division. (See Plumbing Fixtures.)

Iron, Gray — Foundry

Ironing, Washing and — Machine Manufac-
turing

Iron, Malleable

Iron, Scrap — , Nonferrous Scrap Metal and
Waste Materials Trade (see also Scrap Iron,
Xonferrous Scrap Metals, and Waste Mate-
rials Trade)

Jack Manufacturing Subdivision. {See Ma-
chinery and Allied Products.)
Jewelers', Industrial ■ — and Dental Brush
Manufacturers' Division. (See Brush Man-
ufacturing.)
Jewelry Division. (See Wholesaling or Dis-
tributing Trade.)
Jewelry, Medium and Low Priced — Manu-
facture g

Jewelry, Men's Novelty — Division. (See
Wholesaling or Distributing Trade.)

Jewelry, Precious — Producing

Jewelry , Retail — Trade

Jobbers, Cycle — Division. (See Wholesaling

or Distributing Trade.)
Johnson, General Hugh S.

Appointment as Administrator

(See also Administration — Executive

Orders — National Industrial Recovery Act.)

Jordan, Beater and — and Allied Equipment.

(See Machinery and Allied Products.)
Journal Bearings, Railway Brass Car and
Locomotive — and Castings Manufactur-
ing

Jute, Hair and — Felt

Kiln, Cooler, and Dryer Manufacturing Sub-
division. (See Machinery and Allied Prod-
ucts.)
Knife, Table and Trade — Section. (See Cut-
lery, Manicure Implement and Painters
and Paperhangers Tool Manufacturing and
Assembling Supplement.)

Knit, Leather and Woolen — Glove

Knitted Woolen Goods Division. (See Wool
Textile Amendment, No. 1.)

Date

Volume

3-16-34

2-17-34
11-27-33
2- 1-34
3-23-34
8-19-33
2- 3-34
12-30-33
9- 7-33

2-10-34

11- 4-33
11-27-33

3-12-34

12-23-33

11-27-33
11-27-33

6-16-33

1-29-34
10-31-33

11- 4-33

VIII

VII

III

VIII

II
III

VIII

III
III

909

Code no.

Industry

Date

Volume

Page

1G4

Knitted Outerwear

12-18-33

199

Home work, Approving extension of time

for fixing minimum piecework rates

for — in the

2- 6-34

660

Stay, Termination of — for manufactur-

ers of knitted outerwear for infants and

children

3-16-34

VIII

869

Knit. (See Leather and Woolen Knit Glove.)

Knitting, Braiding and Wire Covering Ma-

chinery

10- 3-33

411

Amendment, No. 1

2-17-34

VII

627

263

Knife, Machine — and Allied Steel Products

Manufacturing

2- 6-34

243

294

Label, Gummed — and Embossed Seal

Label, Rules and regulations concerning - — ■

2-17-34

VII

151

bearing Emblems or Insignia of the N.R.A_.

1-17-34

778

Labels. (See Graphic Arts.)

217

Laboratory, Dental

1-22-34
9- 7-33

283

Laboratory, Motion Picture

299

Labor Board, Continuance of the National

— , Etc

12-16-33

648

Labor Provisions:

Beet Sugar

10-27-33

687

Brewing

3-22-34

VIII

729

Codes of Fair Competition, Regulations

governing the posting of — of

2-28-34

VII

721

Codes of Fair Competition, Rules and

Regulations governing the posting

of — of

2-12-34
3-21-34

VI
VIII

662

Distilled Spirits

719

Handicapped Workers, Prescribing rules

and regulations for the interpretation

and application of certain — of Codes

of Fair Competition as they may affect _

2-17-34

VII

706

Retail Food and Grocery Trade

11-15-33

III

633

Wholesale Food and Grocery Trade

11-15-33

III

645

Lace Division. (See Leather Industry

Amendment, No. 1.)

Lace, Embroidery and — Division. (See

Wholesaling or Distributing Trade.)

Lace Manufacturing

8-14-33

Amendment, No. 1

12-23-33
11- 1-33

665

Lace, Nottingham — C urtain

253

296

Lace Paper, Fluted Cup, Pan Liner and

2-17-34

VII

175

Lacquer, Paint, Varnish and — Manufactur-
ing (see also Paint, Varnish and Lacquer

Manufacturing)

10-31-33

169

La Crosse. (See Athletic Goods Manufac-

turing.)

107

Ladder Manufacturing

11- 8-33

619

332

Ladies' Handbag

3-14-34

VIII

Ladle and Hot Top Refractories Division.

(See Refractories.)

Lamp Chimneys and Lantern Globes Divi-

sion. (See American Glassware.)

344

Lath, Metal — Manufacturing (see also

Metal Lath Manufacturing)

3-17-34

VIII

195

Laundry and Dry Cleaning Machinery Man-

ufacturing

10- 3-33

437

281

Laundry Trade

Lawn Mower, Power and Gang (see also
Fabricated Metal Products Manufactur-
ing and Metal Finishing and Metal Coat-

2-16-34

487

ing) _

3-26-34

VIII

837

910

Code no.

Industry

Date

Volume

Page

Law Printers. (See Graphic Arts.)

291

Lead Pencil, Wood Cased — Manufacturing-

2-17-34

VII

109

Leather and Woolen Knit Glove

11- 4-33

367

Temporary hours modification for the —

Industry

12- 6-33

695

Leather Industry

9- 7-33

287

Amendment, No. 1

2-16-34
2-16-34

VI
VI

631

American Leather Belting Division.^

631

Aprons Division

2-16-34

631

Canvas Lug Straps Division

2-16-34

631

Strapping Division

2-16-34

631

Loom Picker Division

2-16-34

631

Lace Division

2-16-34

631

Leather, Luggage and Fancy — Goods (see

also Luggage and Fancy Leather Goods)

10- 3-33

519

184

Leather, Shoe and — Finish, Polish, and Ce-

ment Manufacturing

12-30-33

485

320

Leather Working, Hide and — Machine

3- 6-34

VII

485

Legitimate Full-Length Dramatic and Musi-

cal Theatrical

8-16-33

Letters. (.See Athletic Goods Manufactur-
ing.)
Library Binding. (See Graphic Arts.)

226

Light Sewing Industry Except Garments

1-23-34

403

Comfortable Division

1-23-34

413

Covered Carpet Padding Division

1-23-34

422

Fabric Auto Equipment Division

1-23-34

421

Mattress Cover Division

1-23-34

415

Motor Robe Division

1-23-34
1-23-34

V
V

424

Quilting Division

419

Table Pad Division

1-23-34

10- 3-33

2-10-34

417

Lime

397

Amendment, No. 1 (Dolomite Division)...

623

365

Lime, Sand — Brick (see also Sand-Lime

Brick)

3-26-34

VIII

497

113

Limestone

11-14-33

III

Limitation. (See Cotton Textile.)

296

Liner, Fluted Cup, Pan — and Lace Paper

Linings, All-Cotton Clothing — Division.

(See Cotton Textile Supplement, No. 1.)
Linings, Clothiers' — Division. (See Cotton

Textile Supplement, No. 1.)

2-17-34

VII

175

Linoleum and Felt Base Manufacturers

9-18-33

389

104

Liquefied Gas

11- 8-33

587

252

Liquid, Cylindrical — Tight Paper Container.
Lithographic Plate, Trade — Making. (See

Graphic Arts.)
Lithographic Printing. (See Graphic Arts.)

2- 1-34

169

Loan, Savings, Building and — Associations. _
Locomotive Arch Refractories Division. (See

Refractories.)
Locomotive Manufacturing Subdivision.

(See Machinery and Allied Products.)

12-21-33

279

233

Locomotive, Railway Brass Car and — Jour-

nal Bearings and Castings Manufacturing. _

1-29-34

511

Loom Picker Division. (See Leather Indus-

try Amendment, No. 1.)

175

Low, Medium, and — Priced Jewelry Manu-

facturing

12-28-33

355

Lubricator, Mechanical — Subdivision. (See

Machinery and Allied Products.)

Lug, Canvas — Straps Division. (See Leath-

er Industry Amendment, No. 1.)

Luggage and Fancy Leather Goods

10- 3-33

519

Amendment, No. 1

3-10-34

VII

661

911

Code no.

Industry

Date

Volume

Page

Lumber and Timber Products

8-19-33

Amendments, No. 1 and 2

10-19-33

705

Amendments, No. 3 and 4

12- 7-33
3-23-34

VIII

633

Amendment, No. 5

693

Exemption, Denial of application for —

by Greensboro Lumber Company

10-20-33

696

Lumber Products, Retail Lumber, — Building
Materials and Building Specialties (see also
Retail Lumber, Lumber Products, Building

Materials, and Building Specialties)

10- 3-33

417

300

Lye

2-19-34

VII

221

234

Macaroni

1-29-34

521

Stay, Modifying — of Section 6, Article

VI for the — Industry

2-17-34

VII

714

Machine. (See Coin Operated Machine

Manufacturing — Cotton Textile — Knit-

ting, Braiding, and Wire Covering Machine

— Machine Tool and Equipment Distribu-

ting Trade — Machine Tool and Forging

Machine — Paper Making Machine Build-

ers — Silk Textile — Special Tool Die and

Machine Shop — Washing and Ironing

Machine Manufacturers.)

327

Machine Applied Staple and Stapling Ma-

chine

3-10-34
1-23-34

VII
V

579

228

Machine, Coin Operated — Manufacturing-.

435

149

Machined Waste Manufacturing

12- 7-33

III

607

320

Machine, Hide and Leather Working

3- 6-34

VII

485

263

Machine Knife and Allied Steel Products

Manufacturing

2- 6-34

243

Machine, Knitting, Braiding, and Wire Cover-
ing (see also Knitting, Braiding, and Wire

Covering Machine)

10- 3-33

411

144

Machine, Paper Making — Builders

12- 7-33

III

543

347

Machinery and Allied Products

3-17-34
3-17-34

VIII
VIII

231

Air Filter Subdivision

231

Bakery Equipment Manufacturing Sub-

di vision

3-17-34

VIII

231

Beater and Jordan and Allied Equipment

Subdivision

3-17-34

VIII

231

Caster and Floor Truck Manufacturing

Subdivision

3-17-34
3-17-34

VIII
VIII

231

Cereal Machinery Subdivision

231

Concrete Mixer Subdivision

3-17-34

VIII

231

Contractors' Pump Subdivision

3-17-34

VIII

231

Conveyor and Material Preparation

Equipment Manufacturing Subdivision.

3-17-34

VIII

231

Diamond Core Drill Manufacturing Sub-

division

3-17-34

VIII

231

Diesel Engine Manufacturing Subdivi-

sion ._•

3-17-34

VIII

231

Envelope Machine Manufacturing Sub-

division

3-17-34
3-17-34

VIII
VIII

231

Hair Clipper Manufacturing Subdivision.

231

Hoist Builders Subdivision

3-17-34

VIII

231

Hoisting Engine Manufacturing Sub-

division

3-17-34
3-17-34

VIII
VIII

231

Hydraulic Machinery Subdivision

231

Jack Manufacturing Subdivision

3-17-34

VIII

231

Kiln, Cooler, and Dryer Manufacturing

Subdivision

3-17-34
3-17-34

VIII
VIII

231

Locomotive Manufacturing Subdivision _

231

Mechanical Lubricator Subdivision

3-17-34

VIII

231

Oil Field Pumping Engine Manufactur-

ing Subdivision

3-17-34

VIII

231

912

Industry

Date

Volume

Machinery and Allied Products — Continued.

Power Transmission Subdivision

Pulverizing Machinery and Equipment

Subdivision

Railway and Industrial Spring Manu-
facturing Subdivision

Railway Appliance Manufacturing Sub-
division

Reduction Machinery Subdivision

Refrigerating Machinery Subdivision

Rock and Ore Crusher Subdivision

Roller and Silent Chain Subdivision

Rolling Mill Machinery and Equipment

Subdivision

Sawmill Machinery Subdivision

Small Locomotive Subdivision

Sprocket Chain Subdivision

Steam Engine Manufacturing Sub-
division

Water Meter Manufacturing Subdivision.

Waterpower Equipment Subdivision

Water Softener and Filter Subdivision. _

Wire Machinery Subdivision

Woodworking Machinery Subdivision. _
Machinery, Construction — Distributing

Trade.l

Machinery, Industrial Supplies and — Dis-
tributors Trade

Machinery, Marine Auxiliary

Machine Operation. (See Cotton Textile.)
Machinery. (See Canning and Packing
Machinery — Construction Machinery
Distributing Trade — Cotton Textile —
Industrial Supplies and Machinery Dis-
tributors — Marine Auxiliary Machinery

— Packaging Machinery Industry and
Trade — Road Machinery Manufacturing

— Textile Machinery.)

Machinery, Canning and Packing (see also

Canning and Packing Machinery)

Machinery, Packaging — Industry and Trade-
Machinery, Road — Manufacturing

Machinery, Textile

Machine .Shop, Special Tool, Die and

Machine Tool and Equipment Distributing

Trade I

Machine Tool and Forging Machinery 1

Machine, Washing and Ironing — Manufac-
turing j

Malleable Iron

Manicure, Cutlery, — Implement and |
Painters and Paperhangers Tool Manu-
facturing and Assembling (see also Fabri-
cated Metal Products Manufacturing and

Metal Finishing and Metal Coating) ;

Manicure Stick, Bulk Drinking Straw,
Wrapped Drinking Straw, Wrapped Tooth-
pick and Wrapped (see also Bulk Drinking !
Straw, Wrapped Drinking Straw, Wrapped i
Toothpick, and Wrapped Manicure Stick) J
Map Publishers. (See Graphic Arts.)

Marine Auxiliary Machinery I

Marine Goods, Cork — Manufacturers Divi-
sion. (See Cork.)
Marking Devices I

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

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

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

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

1-23-34

10-23-33
1-30-34

10-31-33
10-31-33
10-31-33

10- 3-33
11-17-33

11-27-33

11- 8-33

11- 4-33
11-27-33

3-26-34

3-14-34
1-30-34

10-20-33

VIII
VIII
VIII

VIII

viii !

VIII
VIII j
VIII

VIII j
VIII j
VIII
VIII

VIII
VIII
VIII
VIII
VIII
VIII

III

III
II

II
III

VIII

VIII
V

913

Industry

Date

Volume

Page

Masonrv, Concrete 1 1-27-33

Mastic Tile, Asphalt and 12- 7-33

Match, American 12-30-33

Mattress Cover Division. (See Light Sewing

Industry Except Garments.)
Mayonnaise

Mechanical, Beauty and Barber Shop —
Equipment Manufacturing

Mechanical Lubricator Subdivision. (See
Machinery and Allied Products.)

Mechanical Rubber Goods Division. (See
Rubber Manufacturing.)

Mediation and arbitration. (See Automobile
Manufacturing.)

Medium and Low Priced Jewelry Manufac-
turing 12-23-33

Men's Clothing 8-26-33

Amendment, No. 1 12-15-33

Amendment, No. 2 12-18-33

Men's Garter, Suspender and Belt 11- 4-33

Amendment, No. 1 12- 7-34

Hazardous occupations classified for

the — Industry 3- 3-34

Men's Neckwear 3-24-34

Men's Novelty Jewelry Division. (See
Wholesaling or Distributing Trade.)

Men's Wear Buttons Division. (See Whole-
saling or Distributing Trade.)

Men's Wear, Carded — Division. (See Wool
Textile Amendment, No. 1.)

Men's Wear, Worsted — Division. (See Wool j
Textile Amendment, No. 1.)

Mercerizers. (See Cotton Textile.)

Merchandise, Musical — Manufacturing j 1-16-34

Merchandise Warehousing Trade 1-27-34

Metal and Metal Frame Division. (See Pic-
ture Moulding and Picture Frame.)

Metal, Fabricated — Products Manufactur-
ing and Metal Finishing and Metal Coating! 11- 2-33

Metal, Fiber and — Work Clothing Button
Manufacturing (see also Fiber and Metal |
Work Clothing Button Manufacturing) 3-17-34

Metal Frame, Metal and — Division. (See
Picture Moulding and Picture Frame.)

Metal Hat Die and Wood Hat Block 1-23-34

Metal Lath Manufacturing 3-17-34

Metallic Wall Structure Industrial Subdivi-
sion (see also Fabricated Metal Products
Manufacturing and Metal Finishing and
Metal Coating Supplement, No. 1)

Metal, Sheet — Division. (See Wholesaling
or Distributing Trade.)

Metals, Scrap Iron, Nonferrous Scrap — and
Waste Materials Trade (see also Scrap Iron,
Nonferrous Scrap Metals, and Waste Mate-
rials Trade)

Metals, Smelting and Refining of Secondary
— into Brass and Bronze Alloys in Ingot
Form 12-21-33

Metal Tank 12-15-33

Metal Treating 3-26-34

Metal Window 1-13-34

Meter, Water — Manufacturing Subdivision,
(See Machinery and Allied Products.)

Ill
III
IV

VIII
VI

407
617
621

269
569

I
IV
IV

VII
VIII

355
229
637
649
471
693

729
467

II
VIII

V
VIII

VIII

191
495

327
155

347
195

703

325

529

133

914

Code no.

Industry

Date

Volume

Page

306

Metropolitan, Non — Newspaper Publishing

and Printing. (See Graphic Arts.)
Mica

2-24-34
2-24-34
2-24-34
2-24-34
2-24-34
2-24-34
2- 1-34
11- 2-33
12-15-33
3-24-34
3-26-34

1-12-34

10-31-33

1-12-34

VII
VII
VII
VII
VII
VII
VI

IV
VIII
VIII

297

Dry Ground Mica Division

297

Importing Division

297

Mining Division

297

Sheet Mica Division

297

Wet Ground Mica Division

297

246

Milk, Paper Disc — Bottle Cap

Mill, Copper and Brass — Products

289

151

Millinery

Amendment, No. 1

701

Hours, Granting stay of — provisions _
Stay, Temporary — of Article IV, Sec-
tion 3 for the — Industry

876
776

Millinery and Dress Trimming Braid and
Textile

149

203

Millinery and Notion Bag Division. (See

Paper Bag Manufacturing.)
Milling, Raw Peanut. _

Mill, Rolling — Machinery and Equipment
Subdivision. (See Machinery and Allied
Products.)

Mill, Steel and Rolling — Casting Division.
(See Non-Ferrous Foundry.)

Mining Division. (See Mica.)

Miscellaneous Glassware Division. (See
American Glassware.)

Miscellaneous Sand Castings Division. (See
Non-Ferrous Foundry.)

Miscellaneous, Pewter, Chromium Plate and
— Division. (See Silverware Manufac-
turing.)

Mixer, Concrete — Subdivision. (See Ma-
chinery and Allied Products.)

Modification (see also Cement — Cotton
Textile — Leather and Woolen Knit
Glove — Macaroni — Retail Lumber,
Lumber Products, Building Material, and
Building Specialties.)
President's Reemployment Agreement __

Mold, Aluminum Permanent — Castings Di-
vision (see also Non-Ferrous Foundry.)

Monument, Retail. (See Retail Monument).

Mop, Dry and Polishing — Manufacturing. _

Mop Stick

366
159
116

10- 3-33

3-26-34
12-15-33
11-14-33

1-23-34

11-27-33

2-21-34

3- 3-34

9- 7-33

10-31-33

3-17-34

11- 8-33

10-3-33
12-7-33

VIII
IV

III

VII
VII

I
II

VIII

I
III

734

511

141

227

Mop, Wet — Manufacturing

425

124

Mortars, High Temperature Bonding —

Division. (See Refractories.)
Moth Proof Paper Products Division. (See

Paper Bag Manufacturing.)
Motion Picture _ _____

215

Explanation of Article VI, Part 2, Sec-
tion 8 for the — Industry

716

Reports, Extension of time within which
to file required — for the — Industry.
Motion Picture Laboratory. _

725

299

Motor Bus _

107

340

Motorcycle Manufacturing

141

108
46

Motor Fire Apparatus Manufacturing

Motor Robe Division. (See Light Sewing

Industry Except Garments.)
Motor Vehicle Retail Trade

629
563

147

Motor Vehicle Storage and Parking Trade

577

915

Code no.

Industry

Date

Volume

Page

358

Mould, Cylinder — and Dandy Roll (see

also Cylinder Mould and Dandy Roll)

3-23-34

VIII

397

Moulding, Finished — Division. (See Pic-

ture Moulding and Picture Frame.)

260

Moulding, Ornamental — , Carving and

Turning.
Moulding, Picture — and Picture Frame (see

2-5-34

205

208

also Picture Moulding and Picture Frame) _

1-16-34

175

Mounting, Trade — and Finishing. (See

Graphic Arts.)

290

Mount, Photographic

2-17-34

VII

Mower, Power and Gang Lawn (see also

Fabricated Metal Products Manufacturing

and Metal Finishing and Metal Coating) _ _

3-26-34

VIII

837

Musical, Legitimate Full Length Dramatic

and — Theatrical

8-16-33

209

Musical Merchandise Manufacturing

Music Printing. (See Graphic Arts.)

1-16-34

191

Mutual Savings Banks

10-9-33

623

200

Napkin, Sanitary — and Cleansing Tissue

1-12-34

312

Narrow Fabrics

2-27-34

VII

387

Braided Elastic Division

2-27-34

VII

387

Braided Non-Elastic Division

2-27-34

VII

387

Woven Elastic Division

2-27-34

VII

387

National Industrial Recoverv Act

2-16-33

683

Administration of

8-10-33

729

Administration, Providing for notice of

proceedings and matters in the — of the.

12-21-33

687

Appropriation, Expenditures out of allo-

cations from the — for

3-27-34

VIII

863

Authority, Delegation of — to Adminis-

trator for Industrial Recovery to Pre-

scribe rules and regulations

2- 8-34

654

Authority, Delegation of — to Adminis-

trator for Industrial Recovery to Pre-

scribe Rules and Regulations, Etc

2- 8-34

655

Authority, Rules and Regulations under

Section 10 (a) and Delegation of —

under Section 2 (b) of the

10-14-33

646

Bulletin Board, Establishment and use of

Official N.R.A

1- 6-34

768

Enforcement of Section 7 (a) of the

2- 1-34

652

Enforcement of Section 7 (a) of the

2-23-34

VII

708

Labels, Rules and Regulations concern-

ing — bearing Emblems or Insignia of

the N.R.A

1-17-34

778

Modify agreements, Authorizing Admin-

ministrator to — entered into or ap-

proved by the President under Title I

of the

11-22-33

III

657

National Labor Board, Continuance of

the — , etc

12-16-33

648

Reemployment Agreement, Exemption

from the President's — of employers

in towns less than 2,500 population

10-23-33

699

Secretary of Agriculture, Amendment of

Executive Orders which Delegated to

the — Certain Authority under the

1- 8-34

649

Secretary of Agriculture, Amendment of

Executive Orders which delegated to

the — certain Authority under the

10-20-33

647

Secretary of Agriculture, Continuing in

effect the Authority delegated to the

— by Executive Order No. 6182

7-21-33

645

Tariff relief, Procedure to be followed for

— under Section 3 (e) of the

10-23-33

700

916

Code no.

Industry

Date

Volume

Page

National Labor Board, Continuance of the

— , Etc

12-16-33

648

National Recovery Review Board:

Creation of the

3- 7-34

VII

709

Funds for the

3- 9-34
3-24-34

VII
VIII

710

363

Neckwear, Men's (see also Men's Neckwear) __

467

335

Needlework, Art (see also Art Needlework)

3-16-34

VIII

288

Newspaper, Daily — Publishing Business
(see also Daily Newspaper Publishing

Business)

2-17-34

VII

Newspaper, Non- Metropolitan — Publishing

and Printing. (See Graphic Arts.)

319

Newspaper Printing Press

3- 5-34

VII

473

119

Newsprint

11-17-33

III

103

266

New York, Inland Water Carrier Trade in the
Eastern Division of the United States

Operating Via the — Canal System

2- 6-34

281

131

Nipple, Pipe — Manufacturing

11-27-33

III

379

271

Nonferrous and Steel Convector Manufac-

turing (Concealed Radiator Industry) _

2-10-34

341

165

Non-Ferrous Foundry

12-18-33

211

Aluminum Permanent Mold Castings

Division

12-18-33
12-18-33

224

Blast Furnace Castings Division

230

Miscellaneous Sand Castings Division

12-18-33

222

Steel and Rolling Mill Castings Division __

12-18-33

228

330

Nonferrous Scrap Metals, Scrap Iron, — and
Waste Materials Trade (see also Scrap Iron,
Nonferrous Scrap Metals, and Waste

Materials Trade)

3-12-34

VIII

Non- Metropolitan Newspaper Publishing and

Printing. (See Graphic Arts.)

Notion, Millinery and — Bag Division.

(See Paper Bag Manufacturing.)

Notion, Thread and Women's Garments

Division. (See Wholesaling or Distributing

Trade.)

Nottingham Lace Curtain

Novelties. (See Silverware Manufacturing.)

11- 1-33

253

Novelty Curtain, Draperies, Bedspreads, and

Novelty Pillow

11- 1-33

263

Novelty Jewelry, Men's - — Division. (See

Wholesaling or Distributing Trade.)

Nozzle, Sleeve, — , and Runner Brick and

Tuyeres Division. (See Refractories.)

Occupations, Hazardous. (See Men's Garter,

Suspender, and Belt Manufacturing —

Wool Felt Manufacturing.)

Office Equipment Manufacturers

Office Outfitting, Commercial Stationery and
— Trade (see also Wholesaling or Distribut-

11- 4-33

413

ing Trade)

3-16-34

VIII

761

Official, Establishment and use of — N.R.A.

Bulletin Board

1- 6-34

768

Oil Burner

9-18-33

339

Amendment, No. 1

10- 3-33

703

Oil Field Pumping Engine Manufacturing

Subdivision. (See Machinery and Allied

Products.)

Oil. (See Petroleum.)

255

Oil, Table — Cloth

2- 2-34

125

370

Open Paper Drinking Cup and Round Nest-

ing Paper Food Container

3-26-34

VIII

567

Optical Manufacturing

10- 9-33

599

917

Code no.

Industry

Ore, Rock and — Crusher Subdivision. (See

Machinery and Allied Products.)
Organ, Pipe

Ornamental Moulding, Carving and Turning

Outdoor Advertising Trade

Outerwear, Knitted

Overhead costs. (See Builders' Supplies

Trade.)
Overtime work. (See Artificial Flower and

Feather — Women's Belt.)
Oyster, Fresh (Fishery Supplement, No. 1)__
Packaged Fuel, Charcoal and — ■ Division.
(See Wholesaling or Distributing Trade.)

Packaging Machinery

Packing, Canning and — Machinery (see also

Canning and Packing Machinery)

Padding, Covered Carpet — Division. (See
Light Sewing Industry Except Garments.)

Pad, Shoulder — Manufacturing

Pad, Table — Division. (See Light Sewing

Industry Except Garments.)
Paint and Varnish Brush Manufacturers'

Division. (See Brush Manufacturing.)
Painters, Cutlery, Manicure Implement and
— and Paperhangers Tool Manufacturing
and Assembling (see also Fabricated Metal
Products Manufacturing and Metal Finish-
ing and Metal Coating)

Painting, Paperhanging, and Decorating (see

also Construction)

Paint, Varnish, and Lacquer Manufacturing,

Amendment, No. 1

Putty Division

Pajama Manufacturers. (See Cotton Textile
Industry.)

Paper and Pulp

Paper Bag Manufacturing

Banana and Dry Cleaner or Garment

Delivery Bag Division

Coffee Bag Division

Glassine Bag Division

Grocery Bag Division

Millinery and Notion Bag Division

Moth Proof Paper Products Division. __

Shopping Bag Division

Wholly or Semi-Hand Made Bag Division

Window-Face Bag Division

Paperboard Manufacturers

Paper, Cylindrical Liquid Tight — Container

Paper Disc Milk Bottle Cap

Paper Distributing Trade

Paper, Fluted Cup, Pan Liner and Lace

Paper, Folding — Box

Paper, Food Dish and Pulp and — Plate

Paper, Glazed and Fancy

Paperhangers, Cutlery, Manicure Implement
and Painters and — Tool Manufacturing
and Assembling (see also Fabricated Metal
Products Manufacturing and Metal Finish-
ing and Metal Coating)

Paper Making Machine Builders

Paper Moth Proof — Products Division.
(See Paper Bag Manufacturing.)

Date

1-16-34

2- 5-34

2-24-34

12-18-33

3-10-34

10-31-33
10-31-33

2- 5-34

3-26-34

VIII

3-12-34

VIII

10-31-33

3- 2-34

VII

3- 2-34

VII

11-17-33

III

1-26-34

11- 8-33

2- 1-34

12-23-33

2-17-34

VII

12-30-33

2- 1-34

3-26-34
12- 7-33

Volume

VII

II
II

VIII

III

918

Code no.

Industry

Date

Volume

Page

370

Paper, Open — Drinking Cup and Round
Nesting Paper Food Container (see also
Open Paper Drinking Cup and Round

Nesting Paper Food Container)

3-26-34

VIII

567

369

Paper Products, Expanding and Specialty
(see also Expanding and Specialty Paper

Products)

3-26-34

VIII

553

167

Paper, Set Up — Box Manufacturing

12-18-33

243

190

Paper Stationery and Tablet Manufacturing. _
Paper, Wall — Division. (See Wholesaling

or Distributing Trade.)
Paper, Waste — Trade Division. (See Scrap

Iron, Nonferrous Scrap Metals and Waste

Materials Trade.)

12-30-33

559

295

Paper, Waterproof

2-17-34

VII

163

166

Paper, Waxed

12-18-33

233

147

Parking Trade, Motor Vehicle Storage and

12- 7-33

III

577

105

Parts, Automotive — and Equipment Manu-

facturing

11- 8-33

599

203

Peanut, Raw — Milling

1-12-34

310

Pearl Button, Fresh Water — Manufacturing.

2-26-34

VII

359

291

Pencil, \\ ood Cased Lead — Manufacturing. _
Pennants. (See Athletic Goods Manufactur-
ing.)
Perfume, Cosmetic and Other Toilet Prepara-

2-17-34

VII

109

361

tions

3-23-34

VIII

435

Periodical Publishing and Printing. (See

Graphic Arts.)

Permanent Mold, Aluminum — Castings

Supplement. (See Non-Ferrous Foundry.)

Permanent Stay, Granting — of exemption

from Codes of Fair Competition in connec-

tion with sales to Hospitals for certain In-

dustries

3- 3-34

VII

726

Personnel, Authorization of Administrator to

appoint — , fix compensations and conduct

hearings

7-15-33

763

Petroleum

Administration given to Secretary of In-

8-19-33

147

terior

8-29-33

730

Transportation, Prohibition of — of Un-

lawful Production

7-11-33

713

Transportation, Prohibition of — of Un-

lawful Production

7-14-33

714

Petroleum Equipment Industry and Trade

(American)

11- 2-33

339

Pewter, Chromium Plate and Miscellaneous

— Division. (See Silverware Manufactur-
ing-)
Photo-Engraving

180

12-23-33

429

362

Photographic and Photo Finishing

3-23-34

VIII

449

Commercial Photography Division

3-23-34

VIII

449

Photo Finishing Division

3-23-34

VIII

449

Portrait Photography Division

3-23-34

VIII

449

Photographic Manufacturing

8-19-33

209

290

Photographic Mount

Photo-Lithographing. (See Graphic Arts.)

2-17-34 i

VII

Piano Manufacturing

11- 4-33

435

Picture Frame. (See Picture Moulding and

Picture Frame.)

124

Picture, Motion

11-27-33
9- 7-33

III
I

215

Picture, Motion — Laboratory

299

208

Picture Moulding and Picture Frame

1-16-34

175

Empty Picture Frame Division

1-16-34

175

Finished Moulding Division

1-16-34

175

919

Code no.

Industry

Date

Volume

Page

Picture Moulding — Continued.

Fitted Picture Frame Division

1-16-34

175

Metal and Metal Frame Division

1-16-34

175

Raw Moulding Division

1-16-34

175

Picture Publishing and Picture Importers.

(See Graphic Arts.)

Piece Goods Selling Division. (See Wool Tex-

tile Amendment, No. 1.)

Piecework, Approving extension of time for

fixing minimum — rates for home work

in the. (See Knitted Outerwear Industry.)

Pillow, Novelty Curtain, Draperies, Bed-

spreads and Novelty

11- 1-33

263

338

Pin, Wooden Insulator — and Bracket Manu-
facturing (see also Wooden Insulator Pin

and Bracket Manufacturing)

3-16-34

VIII

115

192

Pipe, Cast Iron Pressure

12-30-33

579

Pipe, Cast Iron Soil

9- 7-33
12-30-33

259

185

Pipe, Concrete — Manufacturing

497

131

Pipe Nipple Manufacturing

11-27-33

III

379

210

Pipe Organ

1-16-34

203

225

Pipe, Smoking — Manufacturing

1-23-34

393

136

Pipe, Vitrified Clay Sewer — Manufacturing. _
Planning and Fair Practice Agency. (See
Shipbuilding and Shiprepairing Amend-
ment, No. 1.)

11-27-33

III

445

359

Plastic Products, Preformed (see also Pre-

formed Plastic Products)

3-23-34

VIII

409

Plastic Refractories Division. (See Refrac-

tories.)

Plated. (See Silverware Manufacturing.)

247

Plate, Food Dish and Pulp and Paper

Plate, Pewter, Chromium — and Miscellane-
ous Division. (See Silverware Manufac-
turing.)

Plate, Trade Lithographic — Making. (See
Graphic Arts.)

Playing Cards. (See Graphic Arts.)

2- 1-34

Playthings, Toy and

11- 4-33

353

276

Pleating, Stitching and Bonnaz and Hand

Embroidery

2-10-34

403

115

Plug, wood

11-14-33
10-23-33

III
II

Plumbago Crucible

204

Plumbing Fixtures

1-13-34

117

Enameled Cast Iron Plumbing Fixtures

Division

1-13-34

117

Sanitary Brass Plumbing Fittings Divi-

sion

1-13-34

117

1-13-34

117

Vitreous China Plumbing Fixtures Divi-

sion

1-13-34
1-31-34

V
V

117

Amendment, No. 1

699

224

Polish, Furniture and Floor Wax and

1-23-34

381

Polishing, Buffing and — Composition

11- 4-33

501

159

Polishing, Dry and — Mop Manufacturing. _

12-15-33

141

Polishing Wheel, Buff and — Industry

11- 4-33

491

184

Polish, Shoe and Leather Finish — , and

Cement Manufacturing

12-30-33

485

Polo. (See Athletic Goods Manufacturing.)

239

Porcelain Breakfast Furniture Assembling

1-30-34

587

126

Porcelain, Chinaware and — Manufacturing
(see also Chinaware and Porcelain Manu-

facturing)

11-27-33

III

273

Portrait Photography Division. (See Photo-

graphic and Photo Finishing.)

920

Code no.

Industry

Date

Volume

Page

284
216

Posters. (See Graphic Arts.)

Post Hole Digger, Shovel — Division. (See
Tool and Implement Manufacturing Indus-
try Supplement.)

Potterv Supplies and Backwall and Radiant.

Powder Puff

2-16-34
1-17-34

3-26-34

11-27-33
3-23-34

10-23-33

10- 3-33

3- 5-34
12-30-33

11- 8-33

2- 2-34
3-16-34

3- 5-34
12-21-33

7-22-33
3-26-34
3- 8-34

3-23-34
1-30-34

2-17-34

1-17-34

2- 1-34
11-17-33

9-18-33

10-11-33

3- 2-34
12-17-33

VI
V

VIII

III

VIII

VII
IV

VI
VIII

VII
IV

VIII
VII

VIII
V

VII

III

I
I

VII

III

539
273

Power and Gang Lawn Mower Manufacturing
(see also Fabricated Metal Products Manu-
facturing and Metal Finishing and Metal

Coating) ._ _

837

130

Powers, Delegating. (See Administration —
National Industrial Recovery.)

Power Transmission Subdivision. (See Ma-
chinery and Allied Products.)

Precious Jewelrv Producing

365

359

Preformed Plastic Products.

409

President's Reemployment Agreement ex-
empting employers in towns of less than
2,500 population

699

President's Reemployment Agreement Mod-
ification . _ -- -

734

319

Pressed Glassware Division. (See American

Glassware.)
Press, Newspaper Printing _ _

473

192

Pressure, Cast Iron — Pipe_

579

106

Printer's Rollers _ __ _

611

257
339

Printing Equipment Industry and Trade

151
127

319

Printing Machine Operation. (See Cotton
Textile.)

Printing, Non-Metropolitan Newspaper Pub-
lishing and Printing. (See Graphic Arts.)

Printing Press, Newspaper _ _ __

473

172

Printing, Rayon and Silk Dyeing and

Temporary Code approved

311

718

368
324

355

Print Roller and Print Block Manufacturing-

Print, Textile — Roller Engraving

Procedure. (See Administration — National

Industrial Recovery.)
Processing, Rug Chemical — Trade (see also

Rug Chemical Processing Trade).

541
539

365

235

Processing, Textile

539

288

Producers, Fire Clay — Division. (See Re-
fractories.)

Proofing, Automobile Fabrics, — and Backing
Division. (See Rubber Manufacturing.)

Publishing, Daily Newspaper — Business
(see also Daily Newspaper Publishing Busi-
ness)

216

Publishing, Non- Metropolitan Newspaper —

and Printing. (See Graphic Arts.)
Puff, Powder

273

247
120

Pulp, Food Dish and — and Paper Plate

Pulp, Paper and

29
115

Pulverizing Machinery Equipment Subdivi-
sion. (See Machinery and Allied Products.)

Pump, Contractors' ■ — Subdivision. (See
Machinery and Allied Products.)

Pump, Gasoline - — Manufacturing

349

57
316

Pumping, Oil Field — Engine Manufacturing
Subdivision. (See Machinery and Allied
Products.)

Pump Manufacturing

Punchboard Manufacturing

673

439

148

Pyrotechnic Manufacturing

591

921

Code no.

Industry

Date

Volume

Page

351

Quicksilver

3-21-34

VIII

303

Quilting Division. (See Light Sewing Indus-

try Except Garments.)

Racquets. (See Athletic Goods Manufactur-

284

ing-)
Radiant, Pottery Supplies and Backwall and.

2-16-34

539

258

Radiator, Cast Iron Boiler and Cast Iron

2- 3-34

173

271

Radiator, Nonferrous and Steel Convector

Manufacturing (Concealed — Industry) ___

2-10-34

341

129

Radio Broadcasting

11-27-33

III

353

Radio Division. (See Wholesaling or Dis-

tributing Trade.)

Rag, Cotton — Trade Division. (See Scrap

Iron, Nonferrous Scrap Metals and Waste

Materials Trade.)

Railway and Industrial Spring Manufactur-

ing Subdivision. (See Machinery and Al-

lied Products.)

233

Railway Brass Car and Locomotive Journal

Bearings and Castings Manufacturing

1-29-34

511

Railway Car Appliances (see also Fabricated

Metal Products Manufacturing and Metal

Finishing and Metal Coating Supplement,

No. 5)

2- 9-34

637

285

Railway Car Building

2-16-34

551

198

Railway Safety Appliance

1-12-34

Rainwear Division. (See Rubber Manufac-

turing.)

Raw Moulding Division. (See Picture Mould-

ing and Picture Frame.)

203

Raw Peanut Milling

1-12-34

172

Rayon and Silk Dyeing and Printing

12-21-33

311

Temporary code approved

7-22-33

718

Rayon and Synthetic Yarn Producing

Rayon, Temporary placing of — Weaving In-

8-26-33

223

dustry under the Cotton Textile Industry. _

7-14-33

Razor, Straight — Section. (See Cutlery,

Manicure Implement, and Painters and

Paperhangers Tool Manufacturing and As-

sembling Supplement.)

283

Ready- Made Furniture Slip Covers Manufac-

turing

2-16-34

527

311

Ready Mixed Concrete

2-27-34

VII

371

372

Rebuilding, Shoe — Trade (see also Shoe

Rebuilding Trade)

3-27-34

VIII

593

Recovery. (See Administration — National

Industrial Recovery.)

Reduction Machinery Subdivision. (See Ma-

chinery and Allied Products.)

289

Reel, Cloth

2-17-34

VII

302

Refiners, Candle Manufacturing Industry and

the Beeswax and Bleachers

2-20-34

VII

243

173

Refining, Smelting and — of Secondary Metals

into Brass and Bronze Alloys in Ingot Form_

12-21-33

325

168

Refractories

12-18-33
12-18-33

IV
IV

255

Basic Refractories Division

255

Fire Clay Producers Division

12-18-33

255

Fire Clay Refractories Division

12-18-33

255

Glass House Refractories Division

12-18-33

255

High Temperature Bonding Mortars

Division •

12-18-33

255

Ladle and Hot Top Refractories Division.

12-18-33

255

Locomotive Arch Refractories Division. _

12-18-33

255

Plastic Refractories Division

12-18-33

255

Silica Refractories Division |

12-18-33

255

51699—34-

-21

922

Code no.

Industry

Date

Volume

Page

Refractories — Continued.

Sleeve, Nozzle, and Runner Brick and
Tuyeres Di vision __ ._ _

12-18-33
12-18-33
12-18-33

12-23-33
12-30-33

11-27-33

2-16-34
10^21-33

1- 6-34
12-30-33
11-15-33

3-21-34
10- 3-33
11-27-33

2-28-34

10- 3-33
1-12-34

1- 5-34
3-26-34
2-14-34

10-21-33
2-12-34

1-18-34
11-27-33

11- 8-33

3- 7-34

3- 9-34
9-29-33

10-31-33
1-16-34

3- 6-34
11- 1-33

2- 1-34

3- 8-34
3-26-34

IV
IV
IV

IV
IV

III

I
III

VIII

I
III

VII

VIII

III

IV
VII
VII

I
II

V
VII

VII

VIII

255

Special Refractories Division _ _

255

181

Suspended Walls and Arches Division

Refrigerating Machinery Subdivision. (See

Machinery and Allied Products.)
Refrigerator, Commercial __ _ _ __

255

441

183

Refrigerator, Household Ice ______

473

127

282

Regulations. (See Administration — Codes

of Fair Competition — National Industrial

Recovery.)

Reinforcing Materials Fabricating

Relief, Commercial — Printing. (See Graphic

Arts.)
Reports. (See Cotton Textile Industry —

Motion Picture Industry.)
Restaurant. _ _

285
507

Retail Drug Trade

197

Retail Farm Equipment Trade

182

Retail Food and Grocery Trade

457

Labor Provisions

633

Wages of labor, Approving allowance for
actual

871

Retailing, Motor Vehicle — Trade

563

142

Retail Jewelrv Trade _ _ _

517

Stay of effective date of Article VIII,
Section 4 for the — Trade

723

Retail Lumber, Lumber Products, Building

Materials and Building Specialties

Amendment, No. 1

417
673

366

Costs, Temporary modification of method
of computing — for the — Industry ...
Retail Monument _

765
511

280

Retail Solid Fuel _ _ _

469

Retail Trade

Amendment, No. 1__ _

27
629

Exception, Temporary — for members
under Article V, Sections 4 (d) and 6..
Extension of effective date _

779
660

Wage provisions, Stay of Minimum — as
to outside salesmen and drug store
deliverv employees for the

692

Review Board, Creation of the National Re-
covery _ _ _

709

Review Board, Funds for the National Recov-
ery

710

Revision — Bituminous Coal

702

Reworked Wool Division. (See Wool Textile

Amendment, No. 1.)
Road Machinery Manufacturing _ _ _ _

137

211

Robe and Allied Products _

213

321

Robe, Motor — Division. (See Light Sewing

Industry Except Garments.)
Rock and Ore Crusher Subdivision. (See

Machinery and Allied Products.)
Rock and Slag Wool Manufacturing. _

497

Rock Crusher Manufacturing

231

250

Rod, Wire, — , and Tube Die

324

Roller and Silent Chain Subdivision. (See

Machinery and Allied Products.)
Roller Engraving, Textile Print .

539

368

Roller, Print — and Print Block Manufactur-
ing (see also Print Roller and Print Block
Manufacturing)

541

923

Industry

198

Rollers, Printers'

Rolling Mill Machinery and Equipment Sub-
division. (See Machinery and Allied Prod-
ucts.)

Rolling, Steel and — Mill Castings Division
(See Non-Ferrous Foundry.)

Rolling Steel Door .

Roofing, Asphalt Shingle and — Manufactur-

ing.

Slate.)

Roofing, Slate — Division.

Rubber Manufacturing

Automobile Fabrics, Proofing and Back-
ing Division

Hard Rubber Division

Heel and Sole Division

Mechanical Rubber Goods Division

Rainwear Division

Rubber Flooring Division

Rubber Footwear Division

Rubber Sundries Division

Sponge Rubber Division

Rubber, Scrap — Trade Division. (See Scrap
Iron, Nonferrous Scrap Metals and Waste
Materials Trade.)

Rubber Tire Manufacturing

Rugby Football. (See Athletic Goods Manu-
facturing.)

Rug, Carpet and — Manufacturing

Rug Chemical Processing Trade

Rules. (See Administration — Codes of Fair
Competition — National Industrial Re-
covery.)
Rules and regulations concerning labels bear-
ing Emblems or Insignia of the N.R.A

Rules and regulations governing the posting of
labor provisions of codes of Fair Competi-
tion

Rules and Regulations under Section 10 (a)
and Delegation of Authority under Section 2
(b) of the National Industrial Recovery

Act

Rules, Prescribing — and Regulations for the
Interpretation and Application of certain
Labor Provisions of Codes of Fair Compe-
tition as they may affect Handicapped

Workers

Ruling, Trade Binding and Paper. (See

Graphic Arts.)
Runner Brick, Sleeve, Nozzle, and — and
Tuyeres Division. (See Refractories.)

Saddlery Manufacturing. .

Safety Equipment, Industrial — Industry and

Industrial Safety Equipment Trade

Safety, Railway — Appliance

Sales,* Granting Limited exemption from pro-
visions of Codes of Fair Competition in

connection with — to Hospitals

Sales, Granting permanent stay of exemp-
tion from Codes of Fair Competition in
connection with — to Hospitals for certain

Industries

Salesmen. (See Retail Trade.)
Sales, Stay of order granting limited exemp-
tion from provisions of Codes of Fair Com-
petition in connection with — to hospitals

Date

11- 8-33

12-21-33

11- 6-33

12-15-33

12-15-33
12-15-33
12-15-33
12-15-33
15-15-33
12-15-33
12-15-33
12-15-33
12-15-33

Volume

12-

21-

12-
23-

34
34

-17-

-34

-12-

-34

10-

-14-

-33

-17-

-34

- 3

-33

3- 1-34
1-12-34

1-23-34

3- 3-34

2- 2-34

IV
IV
IV
IV
IV
IV
IV
IV
IV

V
VIII

V
VI

VI
VII

VII
V

VII

421
33

782

726

659

924

Code no.

Industry

Date

Volume

Page

Salt Producing

9- 7-33

277

318

Salvage, Wrecking and

3- 3-34

VII

459

301

Sample Card

2-19-34

VII

231

Sand, Administrative approval of Industrial

— Division of the Crushed Stone, Sand

and Gravel, and Slag Industries

12-27-33

707

109

Sand, Crushed Stone — and Gravel and Slag

In dustries

11-10-33
3-26-34

VIII

641

365

Sand-Lime Brick

497

Sand, Miscellaneous — Castings Division.

(See Non-Ferrous Foundry.)

342

Sanitary and Waterproof Specialties Manu-

facturing

3-17-34

VIII

169

Sanitary Brass Plumbing Fittings Division.

(See Plumbing Fixtures.)

371

Sanitary Milk Bottle Closure

3-26-34

VIII

581

200

Sanitary Napkin and Cleansing Tissue

Sanitary Seats Division. (See Plumbing
Fixtures.)

1-12-34

169

Savings, Building and Loan Associations

12-21-33

279

Savings, Mutual — Bank

10- 9-33

623

274

Saw and Steel Products Manufacturing

Sawmill Machinery Subdivision. (See Ma-
chinery and Allied Products.)

2-10-34

381

256

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

— Cutting

2- 2-34

133

191

Scavenger, Cinders, Ashes, and — Trade

12-30-33

569

256

Schiffli, the Hand Machine Embroidery, and
the Embroidery Thread and Scallop Cut-

ting

2- 2-34

133

School Supplies Division. (See Wholesaling

or Distributing Trade.)

114

Scientific Apparatus

11-14-33

III

Scientific Glassware Division. (See Ameri-

can Glassware.)

Scissors and Shears Section. (See Cutlery,

Manicure Implement, and Painters and

Paperhangers, Tool Manufacturing and

Assembling Supplement.)

Scourers, Wool — and Carbonizers Division.

(See Wool Textile Amendment, No. 1.)

330

Scrap Iron, Nonferrous Scrap Metals and

Waste Materials Trade

3-12-34

VIII

Cotton Rag Trade Division

3-12-34

VIII

Nonferrous Scrap Metal Trade Division.

3-12-34

VIII

Scrap Iron and Steel Trade Division

3-12-34

VIII

Scrap Rubber Trade Division

3-12-34

VIII

Textile Waste Trade Division

3-12-34

VIII

Waste Paper Trade Division

3-12-34

VIII

Wool Stock Trade Division

3-12-34
11-14-33

VIII

III

112

Screen, All-Metal Insect

Scythe and Snathe Division. (See Tool and

Implement Manufacturing Industry Sup-

plement.)

294

Seal, Gummed Label and Embossed

2-17-34

VII

151

Seats, Sanitary — Division. (See Plumbing

Fixtures.)

268

Secondary Aluminum

2- 8-34

305

173

Secondary, Smelting and Refining of — Metals

into Brass and Bronze Alloys in Ingot

Form

12-21-33

325

925

Industry

Secretary of Agriculture:

Amendment of Executive Order which
Delegated to the — certain Authority
under the National Industrial Re-
covery Act

Amendment of Executive Orders which
Delegated to the — Certain Authority
under the National Industrial Re-
covery Act

Continuing in effect the Authority Dele-
gated to the — bv Executive Order

No. 6182 1

Delegation of certain functions and

powers to

Securities Engraving and Printing. (See

Graphic Arts.)
Selling, Piece Goods — Division. (See Wool
Textile Amendment, No. 1.)

Set Up Paper Box Manufacturing

Sewer, Vitrified Clay- — Pipe Manufacturing,
Sewing, Light — Industry Except Garments_
Shank, Shoe — Manufacturing (see also Fab-
ricated Metal Products Manufacturing and
Metal Finishing and Metal Coating Sup-
plement, No. 6)

Shaving Brush Manufacturers' Division.

(See Brush Manufacturing.)
Shears, Scissors and — Section. (See Cut-
lery, Manicure Implement and Painters
and Paperhangers Tool Manufacturing and
Assembling Supplement.)
Sheeting. (See Cotton Textile Industry.)
Sheet Mica Division. (See Mica.)
Sheet Metal Division. (See Wholesaling or

Distributing Trade.)
Sheltered Workshops, Granting — Condi-
tional exemption from Codes of Fair Com-
petition __•

Shingle, Asphalt — and Roofing Manufac-
turing

Shipbuilding and Shiprepairing

Amendment, No. 1 (Planning and Fair

Practice Agency)

Hours, Granting extension of — exemp-
tion in the

Shipping, Corrugated and Solid Fiber — Con-
tainer

Ship repairing. (See Shipbuilding and Ship-
repairing Industry.)
Shirtings Division. (See Cotton Textile

Supplement, No. 1.)
Shoe and Leather Finish, Polish, and Cement

Manufacturing

Shoe, Boot and

Shoe. (See Athletic Goods Manufacturing.)

Shoe Rebuilding Trade

Shoe Shank Manufacturing (see also Fabri-
cated Metal Products Manufacturing and
Metal Finishing and Metal Coating Sup-
plement, No. 6)

Shop, Beauty and Barber — Mechanical

Equipment Manufacturing

Shopping Bag Division. (See Paper Bag
Manufacturing.)

Date

Volume

10-20-33

1- 8-34

7-21-33

6-26-33

12-18-33

11-27-33

1-23-34

III

2-21-34

VII

3- 3-34

VII

11- 6-33
7-26-33

10-10-33

2- 1-34

12-30-33
10- 3-33

3-27-34

VIII

2-21-34

VII

2-16-34

Page

647

649

645
712

243
445
403

677

727

523
25

701

658

485
541

593

677
569

926

Code no.

Industry

Date

Volume

Page

262

Shoulder Pad Manufacturing _

2- 5-34

11- 8-33

12-21-33
7-22-33

7-15-33

10- 7-33

12-23-33

12-23-33
12-23-33
12-23-33

12-23-33
12-23-33
12-23-33
12-23-33
12-23-33
12-30-33

12-27-33

11-10-33

3- 6-34
1-22-34
1-22-34
1-22-34
1-22-34

1-31-34

2-16-34
1-16-34
3-22-34

12-21-33
1-23-34

11- 2-33
3-21-34

2-26-34
2-14-34

I
I

IV
IV
IV

IV
IV
IV
IV
IV
IV

VII
V

V
V
V

VIII

IV
V

VIII

VII
VI

231

102

Shovel and Post Hole Digger Division. (See
Tool and Implement Manufacturing Indus-
try Supplement.)

Shovel, Dragline and Crane

563

172

Silica Refractories Division. (See Refracto-
ries.)
Silk. (See Hat Manufacturing.)

Silk, Rayon and — Dyeing and Printing

Temporary code approved

311

718

Silk, Temporary placing of — Industry under
the Cotton Textile Industry .

Silk Textile ...

587

Hours, Curtailment of machine — for the
— Industry

705

177

Silverware Division. (See Wholesaling or

Distributing Trade.)
Silverware Manufacturing

389

Hotel ware, Flatware, and Hollow Ware
Division

389

Pewter, Chromium Plate, and Miscella-
neous Division

389

Plated Flatware Division _

389

Plated Hollow Ware Division

389

Plated Toiletware and Novelties Divi-
sion

389

Sterling Flatware Division

389

Sterling Hollow Ware Division

389

Sterling Novelties Division

Sterling Toiletware Division _ _

389
389

194

Skirt, Blouse, and — Manufacturing

Slag, Administrative approval of Industrial
Sand Division of the Crushed Stone, Sand,
and Gravel and — Industries ...

605
707

109

Slag, Crushed Stone, Sand and Gravel and —
Industry. _

641

321

218

Slag Wool, Rock and — Manufacturing

Slate . _ -..

497
297

Blackboard Slate Division

297

243

Slate Roofing Division

Structural and Electrical Division

Sleeve, Nozzle, and Runner Brick and Tuyeres

Division. (See Refractories.)
Slide Fastener

297
297

635

283

Slip Covers, Ready- Made Furniture — Man-
ufacturing _ _ _

527

214

Slit Fabric Manufacturing

245

354

173
225

Small Arms and Ammunition Manufacturing
Small Locomotive Subdivision. (See Ma-
chinery and Allied Products.)
Smelting^ and Refining of Secondary Metals
into Brass and Bronze Alloys in Ingot Form.

Smoking Pipe Manufacturing

Snathe, Scythe and — Division. (See Tool
and Implement Manufacturing Industry
Supplement.)
Soap and Glycerine Manufacturing

347

325
393

317

350
309

Soapstone, Talc and (see also Talc and Soap-
stone)

Soccer. (See Athletic Goods Manufacturing.)
Sole, Heel and — Division. (See Rubber

Manufacturing.)
Solid Braided Cord

287
349

280

Solid, Retail — Fuel

469

927

Industry

Special Refractories Division. (See Refrac-
tories.)

Specialties. (See Retail Lumber, Lumber
Products, Building Materials and Building
Specialties.)

Specialties, Cork Composition and Cork —
Manufacturing Division. (See Cork.)

Specialties, Sanitary and Waterproof —
Manufacturing [see also Sanitary and
Waterproof Specialties Manufacturing)

Special Tool, Die and Machine Shop

Specialty, Advertising

Spinners. (See Wool Textile Amendment,
No. 1.)

Spirits, Distilled (Labor Provisions)

Sponge Rubber Division. (See Rubber Man-
ufacturing.)

Spring, Railway and Industrial — Manufac-
turing Subdivision. (See Machinery and
Allied Products.)

Spring, Upholstery — and Accessories

Sprinkler, Automatic

Sprocket Chain Subdivision. (See Ma-
chinery and Allied Products.)

Squash. (See Athletic Goods Manufactur-
ing.)

Standardized Stationery and Business Forms.
(See Graphic Arts.)

Staple, Machine Applied — and Stapling
M achine

Stationery, Bank and Commercial. (See
Graphic Arts.)

Stationery, Commercial — and Office Out-
fitting Trade (see also Wholesaling or Dis-
tributing Trade)

Stationery, Paper — and Tablet Manufac-
turing

Statistical, Central — Board, Appointment
of

Statistical, providing for submission of — in-
formation by persons subject to codes

Statistical reports, Requiring certain — from
members of industries subject to Codes of
Fair Competition

Stay. (See Administration — Banker —
Cement — Codes of Fair Competition —
Cotton Cloth Glove Manufacturing —
Cotton Garment — Cotton Textile —
Dress Manufacturing — Furniture Manu-
facturing — Hotel — Knitted Outerwear
— Macaroni — Millinery — Retail Jewelry
Trade — Retail Trade.)

Stay Manufacturing

Steam Engine Manufacturing Subdivision.
(See Machinery and Allied Products.)

Steam Heating Equipment

Steel and Copperplate Engraving and Print-
ing. (See Graphic Arts.)

Steel and Rolling Mill Castings Division.
(See Non-Ferrous Foundry.)

Steel Casting

Steel Goods Division. (See Tool and Imple-
ment Manufacturing Industry Supple-
ment.)

Date

3-17-34
11-17-33
10-31-33

3-21-34

3-10-34
10- 9-33

3-10-34

3-16-34
12-30-33

7-27-33
12- 7-33

3-16-34

2-26-34
2-12-34

11- 2-33

Volume

VIII

III
II

VIII

VII

Page

VII

VIII
IV

I
III

VIII

VII
VI

169

187
97.

719

605
605

579

761
559
724
662

870

315
455

II 299

928

Code no.

Industry

Date

Volume

Page

Steel, Iron and

8-19-33

171

263

Steel, Machine Knife and Allied — Products
Manufacturing.

2- 6-34

243

271

Steel, Nonferrous and — Convector Manu-

turing (Concealed Radiator Industry)

2-10-34

341

171

Steel, Rolling — Door

12-21-33

274

Steel, Saw and — Products Manufacturing

2-10-34

381

Steel Tubular and Firebox Boiler

10-23-33
2-28-34

VII

313

Steel Wool

397

179

Stereotyping, Electrotyping and (see also

Electrotyping and Stereotyping).
Sterling. (See Silverware Manufacturing.)

12-23-33

415

276

Stitching, Pleating — and Bonnaz and Hand

Embroidery

2-10-34
11-14-33

III

403

116

Stick, Mop__*

Stock Exchange Firms

Stoneware Division. (See Earthenware Man-
ufacturing.)

Stopper, Cork — Manufacturers Division.
(See Cork.)

Stone, Administration approval of Industrial
Sand Division of the Crushed — , Sand and

11- 4-33

481

Gravel, and Slag Industries

12-27-33

707

109

Stone, Crushed — , Sand and Gravel, and

Slag Industries

11-10-33

641

158

Stone Finishing Machinery and Equipment __

12-15-33

129

Storage, Business Furniture, — Equipment

and Filing Supply

11- 4-33

383

Storage, Electric — and Wet Primary Battery _

10- 3-33

499

147

Storage, Motor Vehicle — and Parking Trade _
Strapping Division. (See Leather Industry

Amendment, No. 1.)
Straps, Canvas Lug — Division. (See Leather

Industry Amendment, No. 1.)
Straw. (See Hat Manufacturing.)

12- 7-33

III

577

331

Straw, Bulk Drinking — , Wrapped Drinking
Straw, Wrapped Toothpick, and Wrapped
Manicure Stick (see also Bulk Drinking
Straw, Wrapped Drinking Straw, Wrapped

Toothpick, and Wrapped Manicure Stick) _ _

3-14-34

VIII

Structural and Electrical Division. (See

Slate.)

123

Structural Clay Products

11-27-33

III

197

Sugar, Beet — labor provision

10-27-33

687

Suit, Coat and. (See Coat and Suit)

8- 4-33

Sundries, Rubber — Division. (See Rubber

Manufacturing.)

Supplement:

Automobile Manufacturing, No. 1 (Fu-

neral Vehicle and Ambulance Subdivi-

sion)

11- 8-33

671

Construction:

No. 1 (For General Contractors)

2-17-34

VII

667

Building Contractors Subdi-

vision

2-17-34

VII

667

Heavy Construction and Rail-

road Contractors Subdivision..

2-17-34

VII

667

Highway Contractors Subdivi-

sion

2-17-34

VII

667

No. 2 (For Painting, Paperhanging,

and Decorating)

3-12-34

VIII

739

No. 3 (For Elevator Manufacturing).

3-21-34

VIII

803

No. 4 (For Cement Gun Contrac-

tors)

3-21-34

VIII

793

929

Industry

Supplement — Continued.

Cotton Textile No. 1 (For Cotton Con-
verting)

All-Cotton Clothing Lining Division.

Clothiers' Linings Division

Corset, Brassiere, and Allied Trades

Fabrics Division

Curtain and Drapery Fabrics Divi-
sion -

Interlinings Division

Shirtings Division

Wash Goods Division

Fabricated Metal Products Manufactur-
ing and Metal Finishing and Metal
Coating:

No. 1 (For Metallic Wall Structure

Industrial Subdivision) —

No. 2 (For Hand Chain Hoist Man-
ufacturing)

No. 3 (For Chain Manufacturing)...
No. 4 (For Electric Industrial Truck

Manufacturing)

No. 5 (For Railway Car Appliances).
No. 6 (For Shoe Shank Manufactur-
ing)

No. 7 (For Tool and Implement Man-
ufacturing)

No. 8 (For Hack Saw Blade Manu-
facturing)

No. 9 (For Forged Tool Manufac-
turing)

No. 10 (For Cutlery, Manicure Im-
plement and Painters and Paper-
hangers Tool Manufacturing and

Assembling)

No. 11 (For Tackle Block Manu-
facturing)

No. 12 (For Power and Gang Lawn

Mower Manufacturing)

Fishery, No. 1 (For Fresh Oyster)

Wholesaling or Distributing Trade:

No. 1 (For Upholstery and Decora-
tive Fabrics Trade)

No. 2 (For Wholesale Wallpaper

Trade)

No. 3 (For Commercial Stationery

and Office Outfitting Trade)

Supplies, Beauty and Barber — Division.
(See Wholesaling or Distributing Trade.)

Supplies, Builders — Trade

Supplies, Electrical — Division. {See Whole-
saling or Distributing Trade.)
Supplies, Furriers' — Division. (See Whole-
saling or Distributing Trade.)
Supplies, Industrial — and Machinery Dis-
tributors Trade

Supplies, Pottery — and Backwall and Radi-
ant

Supplies, School — Division. (See Whole-
saling or Distributing Trade.)
Supplies, Woolen and Trimming Garment —
Division. (See Wholesaling or Distribut-
ing Trade.)

Date

1-24-34
1-24-34
1-24-34

1-24-34

1-24-34
1-24-34
1-24-34
1-24-34

1-10-34

1-30-34
1-31-34

1-31-34
2- 9-34

2-21-34

3-15-34

3-17-34

3-24-34

3-26-34

3-26-34
3-10-34

3- 6-34
3-16-34
3-16-34

10- 3-33

10-23-34
2-16-34

Volume

V
V

V
VI

VII

VIII

VIII
VII

VII
VIII
VIII

Page

713
720

718

719

721
724
722
723

703

727
739

751
637

677

747

779

811

823

849

837
693

687
771
761

469

47
539

930

Code no.

Industry

Date

Volume

Page

Supply, Business Furniture, Storage Equip-

ment and Filing

11- 4-33

383

261

Supply, Foundry

2- 5-34

219

Supply, Funeral

11- 4-33

421

231

Surgical Dressings

1-27-34

485

Approving extension of time within which

to comply with condition of approval

in the

2-15-34

663

Extending time for presenting plan for

adjustment of wages above the mini-

mum for the — Industry

3- 8-34

VII

731

Suspended Walls and Arches Division. {See

Refractories.)

Suspender, Men's Garter, — and Belt Manu-
facturing {see also Men's Garter, Suspender

and Belt Manufacturing)

11- 4-33

471

Synthetic, Rayon and — Yarn Producing

Table, Blown — Glassware Division. {See

American Glassware.)
Table Pad Division. {See Light Sewing In-
dustry Except Garments.)

8-26-33

223

190

Tablet, Paper Stationery and — Manufactur-

ing

12-30-33
2- 2-34

IV
VI

559

255

Table Oil Cloth

125

Tackle Block Manufacturing {see also Fabri-

cated Metal Products Manufacturing and

Metal Finishing and Metal Coating)

3-26-34

VIII

849

Tackle, Fishing {see also Fishing Tackle)

8-19-33

217

249

Tag

2- 1-34
3-21-34

VI
VIII

350

Talc Soapstone

287

154

Tank, Metal

12-15-33
3-10-34

IV
VII

328

Tapioca Drv Products

593

Tariff, procedure to be followed for — relief

under Section 3 (e) of the N.I.R.A

10-23-33

700

Technical and Industrial Glassware Division.

{See American Glassware.)

Temporary:

Building Supplies Trade, Approval of

method of determining overhead costs

for the

1- 8-34

769

Cement, stay of Article XI for the — In-

dustry

1- 5-34

767

Cotton Garment, relief under Article XI,

Section (b) for the — Industry

1-27-34

785

Cotton Textile, Limitation of hours of

machine operation in the Combed

Sales Yarn Group of the — Industry--

1-10-34

771

Cotton Textile, Limitation of hours of

machine operation in the Wide Bed

Sheeting Group of the — Industry

1-23-34

784

Cotton Textile, limitation of machine

operation of the Combed Thread Pro-

ducers Group of the — Industry in

Yarn

1-10-34

772

Cotton Textile, limitation of machine

operation of the Mercerizers Group of

the — Industry in respect of the pro-

duction of Combed Yarn

1-10-34

773

Cotton Textile, Placing of Cotton Thread

Industry under the — Industry

7-16-33

Cotton Textile, Placing of Rayon Weav-

ing Industry under the — Industry

7-14-33

931

Industry

Temporary — Continued.

Cotton Textile, Placing of Silk Industry

under the — Industry

Cotton Textile, Placing of Throwing In-
dustry under the — Industry

Furniture Manufacturing, stay of Arti-
cles III, IV, and V for the — Industry.
Hosiery, Changes of Article IV for the —

Industry

Leather and Woolen Knit Glove, Hours

modification for the — Industry

Millinery, stay of Article IV, Section 3,

for the — Industry

Retail Lumber, Lumber Products, Build-
ing Materials and Building Specialties,
modification of method of computing

costs for the — Industry

Retail Trade, exception for members of
the — under Article V, Sections 4 (d)

and 6

Tennis. (See Athletic Goods Manufacturing.)

Terra Cotta Manufacturing

Textile and Hosiery Packing Manufacturers.
(See Graphic Arts.)

Textile Bag

Amendment, No. 1

Textile, Cotton (see also Cotton Textile)

Textile Finishing, Temporarily placed under

Cotton Textile Industry

Textile Machinery Manufacturing

Textile, Millinery and Dress Trimming Braid

and

Textile Print Roller Engraving

Textile Processing

Textile, Silk

Textile, Used — Bag

Textile Waste Trade Division. (See Scrap
Iron, Nonferrous Scrap Metals, and Waste
Materials Trade.)

Textile, Wool (see also Wool Textile)

Theatrical, Burlesque (see also Burlesque

Theatrical)

Theatrical, Legitimate Full Length Dramatic

and Musical

Thread. (See Cotton Textile.)
Thread, Notion, — and Women's Garments
Division. (See Wholesaling or Distrib-
uting Trade.)
Thread, Schiffli, the Hand Machine Em-
broidery, and the Embroidery — and

Scallop Cutting

Thread, Temporary placing of Cotton —
Industry under the Cotton Textile In-
dustry

Throwing

Amendment, No. 1

Temporary placing of — Industry under

the Cotton Textile Industry

Ticket and Coupon. (See Graphic Arts.)

Tile, Asphalt and Mastic

Tile, Clay Drain — Manufacturing (see also

Clay Drain Tile Manufacturing)

Tile, Cork Floor — Manufacturers Division.
(See Cork.)

Date

Volume

7-15-33

7-14-33

1-12-34

12-14-33

12- 6-33

1-12-34

1- 5-34

1-18-34

10-31-33

9-18-33

12-23-33

7- 9-33

7-21-33
10- 3-33

I
I

10-31-33
3- 8-34
1-30-34

10- 7-33
2- 8-34

VII
V

7-26-33

3-20-34

VIII

8-16-33

2- 2-34

7-16-33

10-11-33

2- 2-34

7-14-33

12- 7-33

III

3-24-34

VIII

932

Industry

Tile, Floor and Wall Clay — Manufacturing
Timber, Lumber and — Products (see also

Lumber and Timber Products)

Tire, Rubber — Manufacturing

Tissue, Sanitary Napkin and Cleansing

Toilet Brush Manufacturers' Division. (See

Brush Manufacturing.)
Toilet Preparations, Perfume, Cosmetic and
Other (see also Perfume, Cosmetic and

Other Toilet Preparations)

Toiletware. (See Silverware Manufactur-
ing.)
Tool and Implement Manufacturing (see also
Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating) _.
Tool, Cutlery, Manicure Implement and
Painters and Paperhangers — Manufactur-
ing and Assembling (see also Fabricated
Metal Products Manufacturing and Metal

Finishing and Metal Coating)

Tool, Forged — Manufacturing (see also
Fabricated Metal Products Manufacturing
and Metal Finishing and Metal Coating) _ .
Tool, Machine — and Equipment Distribut-
ing Trade

Tool, Machine — and Forging Machinery

Tool, Special — Die and Machine Shop

Toothpick, Bulk Drinking Straw, Wrapped
Drinking Straw, Wrapped — , and Wrapped
Manicure Stick (see also Bulk Drinking
Straw, Wrapped Drinking Straw, Wrapped
Toothpick, and Wrapped Manicure Stick),
Topmakers Division. (See Wool Textile

Amendment, No. 1.)
Topographv, Advertising. (See Graphic
Arts.)

Toy and Playthings

Track. (See Athletic Goods Manufacturing.)
Trade Binding and Paper Ruling. (See

Graphic Arts.)
Trade Lithographic Plate Making. (See

Graphic Arts.)
Trade Mounting and Finishing. (See Graphic
Arts.)

Trade, Retail — and Retail Drug

Trade Typesetting. (See Graphic Arts.)
Transfer, Dry — Manufacturers. (See
Graphic Arts.)

Transit

Transmission, Power — ■ Subdivision. (See

Machinery and Allied Products.)
Transparency, Decalcomania and. (See
Graphic Arts.)

Transport, Air *__

Trapping, Fur — Contractors

Trimming, Draper}', and Upholstery

Trimming, Millinerv and Dress — Braid and

Textile .

Trimming, Woolen and — Garment Supplies
Division. (See Wholesaling or Distribut-
ing Trade.)
Truck, Caster and Floor — Manufacturing
Subdivision. (See Machinery and Allied
Products.)

Date

Volume

11- 4-33

8-19-33

12-21-33

1-12-34

3-23-34

VIII

3-15-34

VIII

3-26-34

VIII

3-24 34

VIII

11-27-33
11- 8-33
11-17-33

III

3-14-34

VIII

11- 4-33

10-21-33

9-18-33

11-14-33

12-15-33

1-16-34

III

IV
V

10-31-33

Page

443

335

435

747

823

811

485

577
187

353

371

1
151
225

149

933

Code no.

Industry

Date

Volume

Page

278

Truck, Electric Industrial Manufacturing

(See also Fabricated Metal Products Manu-
facturing and Metal Finishing and Metal
Coating Supplement, No. 4.)
Trucking _ .

1-31-34

2-10-34
3-26-34
3-17-34
2-24-34
2- 1-34
10-23-33

2- 5-34

2-21-34

7-27-33

10-30-33

10- 9-33

2- 2-34

9-18-33
3-16-34

7-21-33
10-20-33

2-10-34

3- 6-34
11-27-33

12-11-33
1-16-34
3-10-34

2- 8-34

3-23-34

3- 2-34
12-15-33

10-31-33
10- 3-33
12- 7-33

VIII

VII

VI
VII

I
II

VIII

I
II

VI
VII

III

VII

VIII

VII

I
III

751
431

Amendment, No. 1

711

345
305

Tube, Collapsible (see also Collapsible Tube) _
Tube, Fibre Can and _ _

209

285

250

Tube, Wire, Rod, and — Die__

62
260
303

Tubular, Steel — and Firebox Boiler

Tumbler, Automatic — Glassware Division.

(See American Glassware.)
Turning, Ornamental Moulding, Carving and_
Tuyeres, Sleeve, Nozzle, and Runner Brick

and — Division. (See Refractories.)
Twine, Cordage and ______

57
205
257

Twine and Cordage Division. (See Whole-
saling or Distributing Trade.)

Twine, Cordage and — temporarily placed
under Cotton Textile Industry

725

Modification of Executive Order of July
27, 1933, placing Cordage and Twine
Industry temporarily under Cotton
Textile Industry

695

Twine, Cordage and Wrapping — Division.

(See Cordage and Twine.)
Twisted-in-Wire Manufacturers' Division.

(See Brush Manufacturing.)
Typesetting, Trade. (See Graphic Arts.)
Umbrella Manufacturing _ _

613

Amendment, No. 1 _ __ _

605

Underwear and Allied Products Manufactur-
ing _ _ _ __

309

Amendment, No. 1_ _

639

Temporarily placed under Cotton Tex-
tile Industry.

717

Stay extended _ _ _

697

272

Uniforms. (See Athletic Goods Manufac-
turing.)

Unit Heater and/or Unit Ventilator Manu-
facturing, _

355

Upholstery and Decorative Fabrics Division.
(See Wholesaling or Distributing Trade.)

Upholstery and Decorative Fabrics Trade
(see Wholesaling or Distributing Trade
Supplement, No. 1) __

687

125

Upholstery and Drapery Textile

259

Extension of time, Further — for certain
manufacturers to elect not to be bound
under the Code of Fair Competition
for the __ __ ______

686

212
329

Upholstery, Drapery and — Trimming

Upholsterv Spring and Accessories _

225
605

267

Used Textile Bag_ __ _ _ _ _ _■__ —

295

317

Hazardous occupations, Extension of

time to file list of — for minors

Vacuum Cleaner Manufacturing

873
449

153

Valve and Fittings Manufacturing

Varnish, Paint and — Brush Manufacturers'
Division. (See Brush Manufacturing.)

Varnish, Paint — and Lacquer Manufactur-
ing (see also Paint, Varnish, and Lacquer
Manufacturing) _ _

169

Vehicle, Motor — Retailing Trade

563

147

Vehicle, Motor — Storage and Parking Trade.

577

934

Code no

Industry

Date

Volume

Page

188

Velvet

12-30-33
1-24-34

IV
V

539

229

Venetian Blind

447

272

Ventilator, Unit Heater and/or Unit —

Manufacturing

2-10-34

355

Vitreous China Plumbing Fixtures Division.

{See Plumbing Fixtures.)

136

Vitrified Clav Sewer Pipe Manufacturing

Volley Ball.* (See Athletic Goods Manufac-
turing.)

11-27-33

III

445

326

3-10-34

VII

565

Wall, Floor and — Clay Tile

11- 4-33

443

Wall Paper Division. (See Wholesaling or

Distributing Trade.)

Wall Paper Manufacturing

9- 7-33

267

Amendment, No. 1

12-30-33

677

Wallpaper, Wholesale — Trade (see also

Wholesaling or Distributing Trade)

3-16-34

VIII

771

Wall Structure, Metallic — Industrial Sub-

division (see also Fabricated Metal Prod-

ucts Manufacturing and Metal Finishing

and Metal Coating Supplement, No. 1

1-10-34

703

Walls, Suspended — and Arches Division.

(See Refractories.)

232

Warehousing, Merchandise — Trade

1-27-34

495

137

Warm Air Furnace Manufacturing

11-27-33

III

461

Warps, Cotton — Division. (See Wool Tex-

tile Amendment, No. 1.)

Wash Goods Division. (See Cotton Textile

Supplement, No. 1.)

Washing and Ironing Machine Manufactur-

ing

11- 4-33

12- 7-33

II
III

461

149

Waste, Machined — Manufacturing

607

330

Waste, Scrap Iron, Nonferrous Scrap Metals
and — Materials Trade (see also Scrap
Iron, Nonferrous Scrap Metals, and Waste

Materials Trade)

3-12-34

VIII

178

Watch Case Manufacturing

12-23-33

403

Watchmen, Approval of exception as to hours

of work of — in the. (See Fishing Tackle

Industry.)

266

Water Carrier, Inland — Trade in the Eastern
Division of the United States Operating

Via the New York Canal Svstem

2- 6-34

281

Water Meter Manufacturing Subdivision.

(See Machinery and Allied Products.)

Water Polo. (See Athletic Goods Manu-

facturing.)

Waterpower Equipment Subdivision. (See

Machinery and Allied Products.)

140

Waterproofing, Dampproofing, Caulking
Compounds, and Concrete Floor Treat-

ments Manufacturing

11-27-33

III

497

295

Waterproof Paper

Water Softener and Filter Subdivision. (See
Machinery and Allied Products.)

2-17-34

VII

163

342

Waterproof Specialties, Sanitary and —
Manufacturing (see also Sanitary and

Waterproof Specialties Manufacturing)

3-17-34

VIII

169

166

Waxed Paper

12-18-33

233

224

Wax, Furniture and Floor — and Polish

Wear Buttons, Men's — Division. (See

Wholesaling or Distributing Trade.)
Weaving, Temporary placing of Rayon —

Industry under the Cotton Textile Indus-

1-23-34

381

trv

7-14-33

935

Code no.

Industry

Date

Volnme

Page

Wet Ground Mica Division. (See Mica.)

227

Wet Mop Manufacturing

1-23-34

425

Wheel, Buff* and Polishing

11- 4-33

491

292

Wheel' Chilled Car

2-17-34

VII

129

170

Wheel, Grinding

12-21-33

287

163

Wholesale Automotive Trade

12-18-33

185

314

Wholesale Coal ■

3- 1-34

VII

409

186

Wholesale Food and Grocery Trade

1- 4-34

Labor Provisions

11-15-33

III

645

Wages of labor, Approving allowance for

actual

3-21-34

VIII

872

Wholesale Wallpaper Trade (see Wholesaling

or Distributing Trade)

3-16-34

VIII

771

201

Wholesalin0" or Distributing Trade

1-12-34

Beauty and Barber Supplies Division

1-12-34

Buttons Division

1-12-34

Charcoal and Packaged Fuel Division —

1-12-34

C vele Jobbers Division

1-12-34

Dry Goods Division

1-12-34

Electrical Supplies Division

1-12-34

Embroidery and Lace Division

1-12-34

Floor Covering Division

1-12-34

Furriers' Supplies Division

1-12-34

Hardware Division

1-12-34

Hats and Caps Division

1-12-34

Jewelry Division

1-12-34
1-12-34

V
V

Men's 'Novelty Jewelry Division

Men's Wear Buttons Division

1-12-34

Notion, Thread and Women's Garments

1-12-34
1-12-34

V
V

Radio Division

School Supplies Division

1-12-34

Sheet Metal Division

1-12-34

Silverware Division

1-12-34
1-12-34

Supplies Division

Twine and Cordage Division

1-12-34

Upholstery and Decorative Fabrics Divi-

sion

1-12-34
1-12-34

V
V

Wall Paper Division

Woolen and Trimming Garment Sup-

plies Division *

1-12-34

Supplement, No. 1 (For Upholstery

and Decorative Fabrics Trade) —

3- 6-34

VII

687

Supplement, No. 2 (For Wholesale

Wallpaper Trade)

3-16-34

VIII

771

Supplement, No. 3 (For Commercial
Stationery and Office Outfitting

Trade) _ _"_

3-16-34

VIII

761

Wholly or Semi-Hand Made Bag Division.

(See Paper Bag Manufacturing.)

Wide Bed Sheeting. (See Cotton Textile

Industry.)

Window Face Bag Division. (See Paper Bag

Manufacturing.)

205

Window, Metal

1-13-34
2-17-34

V
VII

133

298

Wiping Cloth

199

Wages, Extending time for submission of

a plan to adjust — above the minimum.

3-26-34

VIII

877

Wire and Cable Subdivision. (See Electrical

Manufacturing.)

Wire Brush Manufacturers' Division. (See

Brush Manufacturing.)

Wire Covering, Knitting, Braiding and —

Machine

10- 3-33

411

936

Code no

Industry

Date

Volume

Page

250

251

(See
(See

Wire Machinery Subdivision. (See Machin-
ery and Allied Products.)

Wire, Rod, and Tube Die

Witch Hazel

Women's Belt

Amendment, No. 1

Overtime, Permitting — under certain

conditions for the — Industry

Women's Garments, Notion, Thread and —
Division. (See Wholesaling or Distributing
Trade.)
Women's Wear, Carded — Division

W7ool Textile Amendment, No. 1.)

Women's Wrear, Wrorsted — Division

Wool Textile Amendment, No. 1.)

Wood Cased Lead Pencil Manufacturing

Wood, End Grain Strip — Block

Wooden Insulator Pin and Bracket Manufac-
turing

WTood Heel

W7ood, Metal Hat Die and — Hat Block

Wood Plug

Woodworking Machinery Subdivision. (See

Machinery and Allied Products.)
Wool-felt. (See Hat Manufacturing.)
Woolen and Trimming Garment Supplies
Division. (See Wholesaling or Distribut-
ing Trade.)
Woolen Goods, Knitted — Division. (See

Wool Textile Amendment, No. 1.)
Woolen and Leather and — Knit Glove (see

also Leather and Woolen Knit Glove)

Wool Felt Manufacturing

Occupations, Classification of hazardous

— in the — Industry

Wool, Reworked — Division. (See Wool
Textile Amendment, No. 1.)

Wool, Rock and Slag — Manufacturing

Wool Scourers and Carbonizers Division.
(See Wool Textile Amendment, No. 1.)

Wool, Steel '_

Wool Stock Trade Division. (See Scrap
Iron, Nonferrous Scrap Metals and Waste
Materials Trade.)

Wool Textile

Amendment, No. 1

Blankets Division

Carded Men's Wear Division

Carded Spinner Division

Carded Women's Wear Division

Combers Division

Cotton Warps Division

Knitted Woolen Goods Division

Piece Goods Selling Division

Reworked Wool Division

Topmakers Division

Wool Scourers and Carbonizers

Division

Worsted Men's Wear Division

Worsted Spinners, Bradford System,

Division

Worsted Spinners, French System,

Division

Worsted Women's Wear Division

2- 1-34

2- 1-34
10- 3-33

3-24-34

3- fr-34

VIII
VII

2-17-34
12-30-33

3-16-34

2- 9-34

1-23-34

11-14-33

11- 4-33
11-27-33

VII
IV

VIII
VI

III

II
III

511

705

730

109
511

115
329
347

367
535

3- 2-34

VII

724

3- 6-34

VII

497

2-28-34

VII

397

7-26-33

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

1-23-34

679

93'

Code no.

Industry

Date

Volume

Page

Wool Textile — Continued.

Amendment, No. 2 _

3-26-34

3-27-34
1-16-34

2-17-34
3- 3-34

3-14-34
3- 3-34

8-26-33

VIII

VIII
V

VII
VII

VIII
VII

715

Practice and Merchandising, Approving
rules of_ _ _ __

878

213

Wool Trade _.

235

Workers, Prescribing Rules and Regulations
for the Interpretation and Application of
Certain Labor Provisions of the Codes of
Fair Competition as they may affect Hand-
icapped _

706

Workshops, Granting Sheltered — Condi-
tional exemption from Codes of Fair Com-
petition _ _ __ _ _

727

331
318

Worsted. (See Wool Textile Amendment,
No. 1.)

Woven Elastic Division. (See Narrow Fab-
rics.)

Wrapped, Bulk Drinking Straw, — Drinking
Straw, Wrapped Toothpick, and Wrapped
Manicure Stick (see also Bulk Drinking
Straw, Wrapped Drinking Straw, Wrapped
Toothpick, and Wrapped Manicure Stick) _

Wrapping Twine, Cordage and — Division.
(See Cordage and Twine.)

Wrecking and Salvage

13
459

Wrestling. (See Athletic Goods Manufac-
turing.)

Yarn. (See Cotton Textile.)

Yarn, Rayon and Synthetic — Producing (see
also Rayon and Synthetic Yarn Producing).

Zones, Establishment of Trade. (See Fer-
tilizer.)

223

51 mm— 34 22

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

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