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

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NATIONAL RECOVERY ADMINISTRATION 

HUGH S. JOHNSON, Administrator for Industrial Recovery 



CODES OF FAIR COMPETITION 

Nos. 374-416 
AS APPROVED 

MARCH 28 -MAY 3, 1934 

WITH SUPPLEMENTAL CODES, AMENDMENTS, 

EXECUTIVE AND ADMINISTRATIVE 

ORDERS ISSUED BETWEEN 

THESE DATES 



VOLUME IX 




WE DO OUR PART 



> »«•' Ctu 



■ ,-'lJNIT,KW-,.Sa'AT£S .,,. , ., 
GOVERNMENT PRINTING OFFICE 
WASHINGTON: 1934 



MAY 26 1936 






ChargMl to credit acd 
with Sopt. of Oocumwh 



• • ••< 



CONTENTS 



Industry 



Date Ap- 
proved, 
1934 



CODES OF FAIR COMPETITION 

Tanning Extract 

Roofing Granule Manufacturing and Distributing 

Air Valve 

Reclaimed Rubber Manufacturing 

Peanut Butter 

Bottling Machinery and Equipment Manufacturing 

Used Textile Machinery and Accessories Distributing 

Trade. 

Fur Dealing Trade 

Transparent Materials Converters 

Wood Turning and Shaping Industries 

Funeral Service 

Railroad Special Track Equipment Manufacturing 

Umbrella Frame and Umbrella Hardware Manufacturing. 

Shoe Machinery 

Sandstone 

Clay and Shale Roofing Tile 

Steel Plate Fabricating 

Insecticide and Disinfectant Manufacturing 

Real Estate Brokerage 

Soft Fibre Manufacturing _ ___• 

Lightning Rod Manufacturing. j '!_:• 

Wadding ^_^ l 

Milk Filtering Materials an'd the Dairy Products Cotton 

Wrappings. 
Spraj^ Painting and Finishing Equipment Manufacturing 

Barber Shop Trade 

Household Goods Storage and Moving Trade 

Celluloid Button, Buckle and Novelty Manufacturing 

Copper 

Sewing Machine 

Bleached Shellac Manufacturing 

Dry Goods Cotton Batting 

Shoe Last 

Boatbuilding and Boat Repairing 

Dry Color 

Undergarment and Negligee 

Flexible Insulation 

Retail Rubber Tire and Battery Trade 

Bank and Security Vault Manufacturing 

Loose Leaf and Blank Book 

Pasted Shoe Stock 

Bobbin and Spool 

Commercial Fixture 

Leather Cloth and Lacquered Fabrics, Window Shade 

Cloth and Impregnated Fabrics Industries. 



Mar. 


29 


Mar. 


31 


Mar. 


31 


Apr. 


2 


Apr. 


4 


Apr. 


4 


Apr. 


4 


Apr. 


4 


Apr. 


4 


Apr. 


4 


Apr. 


4 


Apr. 


6 


Apr. 


(J 


Apr. 


6 


Apr. 


6 


Apr. 


6 


Apr. 


6 


Apr. 


6 


Apr. 


9 


Apr. 


9 


Apr. 


19 


Apr. 


19 


Apr. 


19 


Apr. 


19 


Apr. 


19 


Apr. 


19 


Apr. 


20 


Apr. 


21 


Apr. 


21 


Apr. 


21 


Apr. 


21 


Apr. 


23 


Apr. 


24 


Apr. 


25 


Apr. 


27 


Apr. 


30 


May 


1 


May 


1 


May 


1 


May 


3 


May 


3 


May 


3 


May 


3 



(HI) 



CONTENTS— Continued 



Date 



AMENDMENTS 



lotton Textile, No. A-1 

^ Retail Trade, No. A-1 

\Rayon and Synthetic Yarn Producing, No. 1 

Automotive Parts and Equipment Manufacturing, No. 1 

Corset and Brassiere, No. 1 

Retail Trade, No. 2 

Shipbuilding and Shiprepairing, No. 2 

Small Arms and Ammunition Manufacturing, No. 1 

Lumber and Timber Products, No. 6 

Bituminous Coal, No. 1 

Railway Car Building, No. 1 

Shipbuilding and Shiprepairing, No. 3 

Restaurant, No. 1 

Retail Food and Grocery Trade, No. 1 

Shovel, Dragline and Crane, No. 1 

Wholesale Food and Grocery Trade, No. 1 

Lumber and Timber Products, No. 7 

Dress Manufacturing, No. 1 

Construction, No. 2 

Lumber and Timber Products, No. 8 

Men's Clothing, No. 3 

Boiler Manufacturing, No. 1 

COMPACT FOR PRISONS 

Compact of Fair Competition for the Prison Industries of the 
United States of America 



LABOR PROVISIONS 

Distilled Spirits Rectifying 

SUPPLEMENTS 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 13 (For Porcelain Enameling 

Manufacturing) 

Construction, No. 5 (For Tile Contracting) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 14 (For Nonferrous Hot Water 

Tank Manufacturing) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 15 (For Wrench Manufacturing) 
Wholesaling or Distributing Trade, No. 4 (For Beauty and 

Barber Equipment and Supplies Trade) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 16 (For Snap Fastener Manu- 

;f acturing) 

Fisherv, No. 2 (For Wholesale Lobster) 

Retail Trade, No. 1 (For Booksellers Trade) 

Wholesaling or Distributing Trade, No. 5 (For Wholesale 

Millinery Trade) 

Construction, No. 6 (For Electrical Contracting) 

Construction, No. 7 (For Mason Contractors) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 17 (For Advertising Metal Sign and 
Display Manufacturing) 

(IV) 



8-25-33 
12- 4-33 
3-28-34 
3-29-34 
3-29-34 
3-29-34 
3-29-34 
3-29-34 
3-30-34 
3-31-34 
4- 2-34 
4- 2-34 
4r- 4-34 
4- 4r-34 
4- 4^34 
4- 4-34 
4- 6-34 
4-10-34 
4-13-34 
4-13-34 
4r-14^34 
4^16-34 



4-19-34 



5- 3-34 



3-31-34 
4- 2-34 



4- 4-34 
4- 4-34 
4- 4-34 



4- 6-34 
4-13-34 
4-13-34 

4^16-34 
4-19-34 
4-19-34 



4-20-34 



869 



CONTENTS— Continued 



Date 



EXECUTIVE ORDERS 

Code Administration, Making provisions for a clause in codes of 

fair competition relating to collection of expense 

President's Reemployment Agreement, Extension of the 

Tire Manufacturers and Distributors, Agreement among 

ADMINISTRATIVE ORDERS 

Graphic Arts Industries and the Daily Newspaper Publishing 
Business, Stay of effective date for certain divisions 

Copper and Brass Mill Products, Exception from order pertain- 
ing to government contracts and contracts involving the use 
of government funds 

Small Arms and Ammunition Manufacturing, Extension of the 
effective date 

Underwear and Allied Products Manufacturing, Exemption for 
machine and employee hours in the Knit Elastic Group 

Advertising Distributing Trade, Extension of time to elect 
permanent Code Authority -- 

Cotton Garment, Extension of effective date as contained in 
Amendment Number 2 

Industrial Relations Committees for industries operating under 
approved codes 

Crushed Stone, Sand and Gravel, and Slag Industries, Approv- 
ing Cold Laid Bituminous Concrete Division 

Hotel, Granting limited hours exemptions 

Hotel, Termination of exemptions granted to avoid undue 
hardships 

Retail Trade, Allowance in selling price for wages of store labor _ 

Retail Lumber, Lumber Products, Building Materials and 
Building Specialties Trade, Approving method for computing 
overhead costs 

Amendments to N.R.A. Bulletin No. 7, Handhng and adjust- 
ment of complaints 

Government contracts and contracts involving the use of gov- 
ernment funds, Exempting contracts to be performed in the 
Canal Zone 

Builders Supplies Trade, Overhead costs based on cost of mer- 
chandise 

Electrical Manufacturing, Granting permanent stay of certain 
provisions to the Wire and Cable Subdivision 

Retail Lumber, Lumber Products, Building Materials and 
Building Specialties Trade, Stay of price provisions on mer- 
chandise shipped from mill to the consumer 

Certification and Exemplification of Documents, Rules and 
Regulations governing 

Government contracts and contracts involving the use of gov- 
ernment funds, exempting contracts or leases to be performed 
in foreign countries 

Government contracts and contracts involving the use of gov- 
ernment funds, Exempting contracts subsequent to default — 

Government contracts and contracts involving the use of gov- 
ernment funds. Exempting specified situations when the 
United States Government is one of the contracting parties — 

Code Blue Eagle Regulations, Creation, display and penalty. _ 

Crushed Stone, Sand and Gravel, and Slag Industries, Extend- 
ing time to file a cost accounting system and a list of hazardous 
occupations 

(V) 



4-14-34 
4-14-34 
4-19-34 



2-26-34 

3-29-34 

3-29-34 

3-29-34 

3-30-34 

3-30-34 

3-30-34 

4- 4-34 
4- 4-34 

4- 4-34 
4- 5-34 

4- 5-34 
4- 6-34 

4- 6-34 
4- 9-34 
4- 9-34 

4- 9-34 
4-11-34 

4-11-34 
4-11-34 



4-11-34 
4-12-34 



4-12-34 915 



CONTENTS— Continued 



Date 



Code Administration, Regulations governing collection of ex- 
penses of 

Labor Provisions, Extension of tinae to apply for official copies 
of 



Umbrella Frame and Umbrella Hardware Manufacturing, 
Extending time to elect Code Authority 

Floor and Wall Clay Tile Manufacturing, Permitting discounts 
from published price lists 

Vacuum Cleaner Manufacturing, Extending time to file cost 
accounting system 

Blue Eagle Regulations, Creation and penalties 

Government contracts and contracts involving the use of gov- 
ernment funds. Exception for Post office Quarters 

Macaroni, Further stay of provisions applicable to open prices. 

Retail Trade, Regulations governing minimum prices 

Shovel, Dragline and Crane, Exemption pertinent to bidding 
and interpretation of delivery basis 

Electrical Manufacturing, Stay granted to the Signalling Appa- 
ratus Subdivision 

Electrotyping and Stereotyping, Continuing in effect as a sepa- 
rate code 

Photo-Engraving, Continuing in effect as a separate code 

Hotel, Exempting certain members from the provisions of 
Article VIII, Section 1 (g) 

Cotton Cloth Glove Manufacturing, Method of adjusting em- 
ployee wages above the minimuna 

Drapery and Upholstery Trimming, Extension of time permit- 
ting home work 

Government contracts and contracts involving the use of gov- 
ernment funds, Exception extended to the Trustee of the 
Meridian and Bigbee River Railway Company 

Underwear and Allied Products Manufacturing, Extension of 
time to file plan for regulating the disposal of distress mer- 
chandise 

Automotive Board of three. Authorization to pass on certain 
questions arising in Automotive Parts and Equipment 
Manufacturing 

Fishery, Temporary modification of minimum wage provisions 
in the Blue Crab Division 

Shipbuilding and Ship repairing, Temporary staj' of hours pro- 
visions 

Tag, Prohibiting home work 

Upholstery Spring and Accessories Manufacturing, Stay of 
provisions relevant to price filing and publication 

Inland Water Carrier Trade in the Eastern Division of the 
United States Operating via the New York Canal System, 
Temporary stay for the submission of reports and schedules. 

Narrow Fabrics, Termination of stay applicable to home work. 

Knitted Outerwear, Appointing committee to stud}" piecework 
rates and the home-work question 

Retail Jewelry Trade, Stay of effective date for the discontinu- 
ing of script 

Lumber and Timber Products, Extending time to elect members 
of Administrative Agencies in the Railroad Cross Tie Division. 

Trucking, Ajjproving extension of certain time provisions 

Graphic Arts, Temporary stay of pai-ts of Article II for certain 
Divisions : 

Retail Rubber Tire and Battery Trade, Declaration of emer- 
gency and determination of lowest reasonable cost 

Index 



4-14-34- 

4-14-34 

4-14-34 

4-16-34 

4-17-34 
4-19-34 

4-19-34 
4-19-34 
4-19-34 

4-20-34 

4^21-34 

4-21-34 
4-21-34 

4r-24-34 

4-25-34 

4-25-34 

4-26-34 

4-26-34 

4-27-34 

4-27-34 

4-27-34 
4-27-34 

4-27-34 

4-28-34 
4-28-34 

4-30-34 

4-30-34 

5- 1-34 
5- 1-34 

5- 3-34 

5- 3-34 



(VI) 



CODES OF FAIR COMPETITION 



Approved Code No. 374 
CODE OF FAIR COMPETITION 

FOR THE 

TANNING EXTRACT INDUSTRY 

As Approved on March 29, 1934 



ORDER 



Approving Code of Fair Competition for the Tanning Extract 

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 Tanning Extract Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 
niT*pp1"pri to tnp x^r*osiQPTit; * 

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

Approval recommended: 
Geo. L. Berry, 

Division Administrator. 

Wasiii>;gton, D.C, 

March 29, 193^. 

50006° 425-180 34 (1) 



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 Tanning Extract Industry, conducted in Washington 
on February 20, 1934, in accordance with the provisions of Title I 
of the National Industrial Recovery Act. 

HOURS AND WAGES 

This Code provides an average of not more than 40 hours per 
week in any period of two consecutive weeks. The usual exceptions 
are made in regard to non-productive employees. Office employees 
are limited to an average of 40 hours per week over a 13 week period. 

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

OTHER pro\t:sions 

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 900 persons. In 
November, 1933 employment had increased about 15% over June, 
1929, and about 30% over June, 1933, reflecting the effect of the 
President's Reemplo3anent Agreement. The hour schedule of the 
Code will at least maintain the increase attained in November, 1933. 

Figures submitted by 18 plants in the Industry show an increase 
in payrolls of 48.4% between June and November, 1983. This again 
reflects the effect of the President's Reemployment Agreement. If 
production is maintained at the J mie- November, 1933 level, this 
increase in payrolls will be continued as a result of the Code. 

FINDINGS 

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

(2) 



vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanction and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue 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 tlie 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 oi 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. 
Maech 29, 1934. 



CODE OF FAIK COMPETITION FOE THE TANNING 
EXTRACT INDUSTRY 

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

Article I— Definitions 

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

" Industry " — The manufacture, hquefying and/or dissolving, for 
sale of tanning extract from domestic wood and bark or from im- 
ported wood, bark, leaves and nuts. 

" 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 persons to be se]ected in the following manner: 

(a) Two shall be elected by a majority vote from among those 
members of the Industry engaged in the manufacture of tanning 
extract from chestnut wood. 

(b) Two shall be elected from among those members of the 
Industry engaged in the manufacture of tanning extract from que- 
bracho wood. 

(c) One shall be elected from among those members of the In- 
dustry engaged in the manufacture of tanning extract from materials 
other than those mentioned in Sub-divisions (a) and (b) of this 
Section. 

Section 2. 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 
witliout compensation from the Industry. j 

Section 3. 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 

(4) 



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 appropriate modification in the method of selection of the Code 
Authority. 

Section 5. The Code Authority is charged generally with the 
duty of administering this Code. If the Administrator shall deter- 
mine that any action of the Code Authority, or any agency thereof, 
may be 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 fur- 
ther consideration by the Code Authority or agency pending final 
action which shall not be effective unless the Administrator approves 
or unless he shall fail to disapprove after thirty days' notice to him 
of intention to proceed with such action in its original or modified 
form. 

Section 6. 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 7. The expenses of administering this Code shall be borne 
pro rata, in accordance with a formula to be adopted by the Code 
Authority, subject to the approval of the Administrator, by all mem- 
bers 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 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 rela- 
tionships 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 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 here- 
under, 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 or 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 H0UK8 

(a) Watchmen: Forty-eight (48 ") hours in any one week. 

(b) Chauffeurs, truckmen, switching crews and crane operators: 
One hundred eighty (180) hours in any period of four (4) con- 
secutive weeks but not to exceed forty-eight (48) hours in any one 
week, provided, however, that all time worked in excess of nine (9) 
hours in any one day or forty-five (45) hours in any one week 
shall be paid for at not less than time and one-third. 

(c) All other laborers, mechanical workers or artisans employed 
in any plant, mill or factory, or on work connected with the oper- 
ation of any such plant, mill or factory : An average of not more 
than forty (40) hours per week in any period of two (2) consecutive 
weeks, but not more than eight (8) hours in any one day. 

(d) Employees regularly engaged in a managerial or executive 
capacity and their personal secretaries, and employees ser\dng in a 
supervisory capacity, receiving thirty-five ($35.00) dollars or more 
per week, and outside salesmen : No limitation. 

(e) All other employees : An average of forty (40) hours per 
week during any period of thirteen (13) consecutive weeks, but 
not to exceed forty -eight (48) hours in any one week. 

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

Section 3. No emplo3'^er 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. 

Article IV — Wages 

Section 1. The minimum rate of wage of any employee, includ- 
ing watchmen, in any plant, mill or factory or on work connected 
with the operation of any such plant, mill or factory, other than 
office or clerical employees, shall be as follows : 

(a) In the Northern zone, which shall consist of all of the terri- 
tory of the United States except the States named in Subdivision (b) 
hereof : 35 cents per hour. 

(b) In the Southern zone, which shall consist of the States of 
Virginia, Tennessee, North Carolina, South Carolina, Georgia, 
Florida, Alabama, Mississippi, Louisiana, Arkansas, and Texas: 30 
cents per hour. 

Section 2. The minimum rate of wage for 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 estaV)lishes a mi}iimum 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 shall be reviewed and such 



adjustments made therein as are equitable in the light of all the cir- 
cumstances, 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 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 of not less than 80% of the minimum prescribed by this 
Code, provided the State Authority or other agency designated by 
the United States Department of Labor shall have issued a certificate 
authorizing his employment on such basis. Each member shall file 
with the Code Authority a list of all such persons employed by him. 

Article V — General, Labor Pro\t:sions 

Section 1. No person under sixteen (16) years of age shall be em- 
ployed in the Industry. No person under eighteen (18) years of 
age shall be employed at operations or occupations which are hazard- 
ous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator within sixty (60) days after the ejffective 
date of this Code a list of such operations or occupations. In any 
State an employer shall be deemed to have complied with this pro- 
vision as to age if he shall have on file a certificate or permit duly 
signed by the authority in such State empowered to issue employ- 
ment or age certificates or permits, showing that the employee is of 
the required age. 

Section 2. Employees shall have the right to organize and bargain 
collectively through representatives of their own choosing and shall 
be free from the interference, restraint or coercion of employers of 
labor, or their agents, in the designation of such representatives or in 
self-organization or in other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection. No employee 
and no one seeking employment shall be required as a condition of 
emploj^ment 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 pre- 
scribed by the President. 

Section 3. No provision in this Code shall supersede any State 
or Federal law which imposes on employers more stringent require- 
ments as to age of employees, wages, hours of work, or as to safety, 
health, sanitary or general working conditions or insurance or fire 
protection, than are imposed by this Code. 

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

Section 5. All employers shall keep posted copies of Articles III, 
IV and V of this Code, and any amendments thereto, 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 



8 

be submitted by the Code Authority to the Administrator within six 
(6) months after the effective date of this Code. 

Section 7. The manufacture or partial manufacture of any product 
of the Industry in homes shall be prohibited. 

Aeticle VI — Reports and Statistics 

Section 1. Each member shall prepare and file with an impartial 
agent or agents designated by the Code Authority at such times 
and in such manner as it may prescribe, such statistics, data and in- 
formation as the Administrator may from time to time require. In 
addition each member shall furnish the Code Authority such infor- 
mation relating to number of employees, wage rates, emplo3^ees' 
earnings and hours of labor, as it shall require. 

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 
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 contained in this Code shall relieve any member of 
any existing obligations to furnish reports to any Government 
Agency. 

Article VII — 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 VIII — Kecommendatioxs 

Section 1. Upon approval by two-thirds of the members affected 
thereby, 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 
policies of the Act. Such recommendations 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 IX — 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: 



9 

(a) No member of the Industry shall misrepresent, either by 
advertisement, circular, label or otherwise, the quantity, quality, 
grade, value or content of any product sold, or policy, service or 
form of business conducted. 

(b) No member of the Industry shall make any false, misleading 
or inaccurate statements, disparaging competitors or their goods, 
price, value, credit terms, policies or services. 

(c) No member of the Industry shall attempt to induce the breach 
of any existing contract between a competitor and his customer, or 
his source of supplies ; nor shall any such member interfere with or 
obstruct the proper performance of such contractual obligations. 

(d) 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 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. 

(e) 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 X — General Provisions 

Section 1. If any member is also a member of another industry, 
the provisions of the 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 circmn- 
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. 374. 
Registry No. 165S-1-01. 



1 See paragraph 2 of order approving this Code. 



U. S. GOVERNMENT PRINTING OFFICE: lOM 



Approved Code No. 375 
CODE OF FAIR COMPETITION 

FOR THE 

ROOFING GRANULE MANUFACTURING AND 
DISTRIBUTING INDUSTRY 

As Approved on March 31, 1934 



ORDER 



Approving Code of Fair Competition for the Roofing Granule 
Manufacturing and Distributing 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 Roofing Granule Manufacturing and Dis- 
tributing Industry, and hearings having been duly held thereon and 
the annexed report on said Code, containing findings with resi^ect 
thereto, having been made and directed to the President : 

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

Hugh S. Johnson, 
Adininistrator for Industrial Recovery. 

Approval recommended. 
A. R. Glanct, 

Division Administrator. 

Washington, D.C, 

March 31, 193^. 

50360° 482-3 34 (H) 



REPORT TO THE PRESIDENT 

The President, 

The Whife House. 
Sir : This is a report on the Code of Fair Competition for the 
Roofing Granule Manufacturing and Distributing Industry, as re- 
vised after a public hearing conducted in Washington, D.C, on 
December 19, 1933, in accordance with the provisions of Title t of 
the National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employees are not permitted to work more than forty hours per 
week or eight hours per day, except as otherwise provided. 

Hourly limitations do not apply to employees engaged in chemical 
control, managers, executives or supervisors, who receive more than 
thirty-five dollars per week; or to outside salesmen or custodians of 
closed plants. 

Hourly limitations do not apply to employees engaged in emer- 
gency work involving breakdowns or the protection of life or prop- 
erty, provided one and one-half times the normal rate is paid for 
hours worked in excess of forty per week or eight per day. 

To meet peak production periods, employees are permitted to 
work fifty hours in excess of their normal maximum during any 
half calendar year, provided one and one-half times the normal rate 
is paid for hours worked in excess of forty per w^eek or eight per 
day. 

Watchmen are permitted to work fifty-six hours per week. 

The maximum hours permitted employees engaged in continuous 
kiln processes are forty-eight per week or nine and one-half per day. 
During the absence of a schedule relief worker, however, these em- 
ploj^ees are permitted to work eight additional hours per week pro- 
vided the working hours for any four-week period do not exceed 
one hundred and ninety-two and provided that one and one-half 
times the normal rate is paid for all hours worked in excess of the 
normal number. 

Employees are not permitted to work more than six days out of 
any seven. 

The minimum hourly rate for all emploj'ees, except office and 
sales employees, shall be thirty-seven and one-half c€nts in the North 
and thirty-two and one-half cents in the South. 

Office, service or sales employees shall receive a minimum rate of 
fifteen dollars per week except that office boys and girls, not exceed- 
ing five percent of an employer's total number, may be paid not less 
than eighty percent of the minimum. 

Regardless of whether an employee is compensated on a time rate, 
piece work or other basis, a minimum rate of pay is established. 

(12) 



13 

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. 

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

No one under sixteen years of age shall be employed in the in- 
dustry nor anyone under eighteen years of age in manufacturing or 
mining operations. 

ECONOMIC EFFECTS OF THE CODE 

Since the industry product is a building material, the present de- 
mand is required for replacements rather than for new residential 
construction. 

The forty-hour weekly maximum provided by this Code will elim- 
inate the fifty-five and sixty-hour work weeks which prevailed in 
1929. The flexibility which the Code permits is necessary because 
eighty percent of the employees' work is done out of doors. 

The majority of the Industry's employees are unskilled laborers 
who will be beneficially affected by the hourly minimum of thirty- 
two and one-half cents in the South. This will more than restore 
1929 equivalent earnings. The minimum hourly rate of thirty-seven 
and one-half cents in the North will practically restore 1929 
equivalent wages. 

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 re- 
moval of obstructions to the free flow of interstate and foreign com- 
merce which tend to diminish the amount thereof and will provide 
for the general welfare by promoting the organization of industry 
for the purpose of cooperative action among the trade groups, by in- 
ducing 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 comiDlies 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- 



14 

said Industry; and that said association imposes no inequitable 
restrictions on admission to membership therein. 

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

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

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

For these reasons, therefore, I have approved this Code. 
Kespectfull}'-, 

Hugh S. Joiinson, 

AdminiMrator. 
March 31, 1934. 



CODE OF FAIR COMPETITION FOR THE ROOFING 
GRANULE MANUFACTURING AND DISTRIBUTING 
INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as the Code 
of Fair Competition for the Roofing Granule Manufacturing and 
Distributing Industry, and shall be the standard of fair competition 
for this Industry, and shall be binding upon every member thereof. 

Article II — Definitions 

Section 1. The term " Industry " as used herein includes the 
mining, manufacturing, selling and/or distributing by a member of 
the Industry, of the products of the Roofing Granule Manufacturing 
Industry, as such products are herein defined. 

Section 2. The term " employee " as used herein includes all 
persons engaged in the Industry, however compensated, except a 
member of the Industry. 

Section 3. The terni " employer " as used herein includes anyone 
in the Industry by whom any such employee is compensated or 
employed. 

Section 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. 

Section 5. The term " member of the Code " as used herein 
includes any member of the Industry who shall expressly signify 
assent to this Code. 

Section 6. The term " products " as used herein means and in- 
cludes all granules and/or fines used for roofing purposes, regardless 
of methods of grinding, crushing, coloring, or otherwise preparing 
slate, stone, quartz, clay, or other base material of such granules 
and/or fines for roofing purposes. 

Section 7. The term "Association " as used herein means the 
Roofing Granule Manufacturers Association. 

Section 8. The terms " President ", "Act ", and "Administrator " 
as used herein shall mean, respectively, the President of the United 
States, Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery under said Act. 

Section 9. The term " Southern Section " as used herein means 
the States of Alabama, Arizona, Arkansas, Florida, Georgia, Louisi- 
ana, Mississippi, New Mexico, South Carolina, Tennessee, Texas, and 
Virginia. 

Section 10. The term " Northern Section " as used herein means 
all of the states north and west of the states enumerated in Section 
9 hereof. 

(15) 



16 
Abticle III — Hours 

Section 1. No employees shall be permitted to work in excess of 
forty (40) hours in any week, or eight hours in any twenty-four 
(2i) hour period, with the exceptions specifically provided in this 
Article : 

(a) The maximum limitations on hours and days in this Article 
III shall not apply to employees engaged in chemical control, execu- 
tive, managerial or supervisory work who receive compensation ex- 
ceeding thirty-five (35) dollars per week, or outside salesmen. Em- 
ploj-ees engaged in emergency work involving breakdowns or the 
protection of life or property who may be permitted to work hours 
in excess of the maximum provided in Section 1, but in any such 
special case at leas-t one and one-half (l^/^) times the normal rate 
shall be paid for hours worked in such excess. 

(b) Employees engaged solely as custodians at plants not 
operating. 

(c) Employees engaged as watchmen shall be permitted to work 
a maximum of fifty-six (56) hours in any week. 

(d) Emploj^ees engaged in continuous kiln-dr^dng and kiln-burn- 
ing processes shall be permitted to work not more than forty-eight 
(48) hours in any week, or nine and one-lialf (91/2) hours per day 
except that when a scheduled relief worker is not available, such 
employees may be permitted to work eight hours in excess of such 
maximum weekly limit, provided they are paid at least one and one- 
half (IV2) tiii^^s their normal rate for such extra hours and that 
such overtime is reported to the Code Authority and provided fur- 
ther that such emplo3"ees shall not be permitted to work in excess 
of one hundred and ninety-two (192) hours in any four- weeks 
period. 

Section 2. (a) During periods of seasonal requirements employees 
shall be j)erniitted to v\'Ork in excess of forty (40) hours in any week 
or eight hours in any twenty-four (24) hour period, provided that 
no employee shall be permitted to work in excess of fifty (50) hours 
of overtime during either semi-annual period, January 1st to June 
30th or July 1st to December 31st, inclusive; and provided further 
that all such overtime, above forty (40) hours per week or eight 
hours per day, be compensated by at least one and one-half (l^^) 
times the normal rate; and provided further that all such overtime 
shall be reported to the Code Authoritj^ at the expiration of each 
six (6) months period. 

Section 3. No employer shall knowingly permit any employee 
to work for one or more employers in this Industry for a total 
number of hours or days exceeding the foregoing limitations. 

Section 4. No employee shall be permitted to work in excess of 
six days in any seven day period. 

Article IV — Wages 

Section 1. No employee shall be paid at less than the hourly 
rate of 

(a) Thirty-two and one-half (32^/2) cents per hour in the Soutii- 
ern Section. 



17 

(b) Thirty-seven and one-half (371/2 ) cents per hour in the North- 
ern Section. 

Section 2. No office, clerical, accounting, service or sales employee 
shall be paid at less than the minimum rate of fifteen (15) dollars 
per week, except that office boys and girls may be permitted to 
work for not less than eighty (80) percent of the above minimum 
wage; provided, however, that the total number of such employees 
shall not exceed five percent of an employer's total number of office 
employees; and further provided that each employer shall be per- 
mitted at least one such junior emploj^ee. 

Section 3. 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 4. 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, or within such further time as may be allowed 
by the Administrator report in full to the Code Authority concern- 
ing such adjustments whether made prior to or subsequent to such 
approval, ]3rovided, however, that in no event shall hourly rates of 
paj^ be reduced. 

Section 5. Female employees performing 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 anj^one under eighteen (18) years of 
age in manufacturing or mining operations. In any State an 
employer shall be deemed to have complied with this provision if 
he shall have on file a certificate duly issued by the authority empow- 
ered to issue employment certificates showing that the employee is of 
the age required. 

Section 2. Every employer shall provide for the safety and health 
of his employees at the place and during the hours of their employ- 
ment. Standards for safety and health shall be submitted by the 
Code Authority to the Administrator within six months after the 
effective date of this Code. 

Section 3. 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 
ill self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

Section 4. No employee and no one seeking employment shall be 
required as a condition of employment to join any company union, 
or to refrain from joining, organizing, or assisting a labor organiza- 
tion of his own choosing. 

Section 5. Employers shall comply with the maximum hours of 
labor, minimum rates of pay and other conditions of employment 
approved or prescribed by the President. 



18 

Section 6. Within eacli State this Code shall not supersede any 
Federal or State laws imposing more stringent requirements on em- 
ployers regulating the age of employees, wages, hours of work, safety 
or health, fire or general working conditions than under this Code, 

Section 7, Employers shall not reclassify employees or duties of 
occupations performed by employees or engage in any other subter- 
fuge so as to defeat the purposes of the Act or of this Code. 

Section 8. Official copies of labor provisions of this Code shall be 
kept conspicuously posted at all times in each shop, establishment, or 
separate unit, where easily accessible to all employees. 

Section 9. 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 wage established by this Code if the 
employer obtains from the State authority designated by the United 
States Department of Labor a certificate authorizing his employ- 
ment at such wages as may be stated in the certificate. Such author- 
ity shall be guided by 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 such persons employed 
by him. Such employees shall not constitute more than five percent 
of any employer's total number of plant employees. 

Section 10. An employer shall make payment of all wages due in 
lawful currency or by negotiable check therefor, payable on demand. 
Wages shall be paid at regular intervals. These wages shall be ex- 
empt from any payments for pensions, insurance, or sick benefits 
other than those voluntarily paid by the wage earners or those de- 
ductions required by law. 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 persons for the purpose of influenc- 
ing rates of wages or the working conditions of his employees. 

Section 11. An employer shall so administer work in his charge 
as to provide a maximum practicable continuity of employment for 
his personnel. 

Artico; VI — Administration 

Section 1. To further effectuate the policies of the Act, a Code 
Authority is hereby constituted to cooperate with the Administrator 
in the administration of this Code. 

Section 2. (a) The Code Authority shall consist of five individ- 
uals. In addition there may be not more than three members, with- 
out vote and without cost to the Industry, appointed by the 
Administrator to serve for such periods as he may designate. 

(b) If, in any case, by reason of conditions peculiar to the Indus- 
try, selection by the Industry of members of the Code Authority 
representing the Industry is impossible, they maj^ be appointed by 
the President or his agent. 

Section 3. All voting members of the Code Authority shall be 
elected from the Industry in a fair and equitable manner subject to 
the approval of the Administrator. The Association is hereby des- 
ignated as the agency to conduct such election. In order for any 
election of the Code Authority to be valid, it shall be necessary that 
at least two-thirds of the members of the Code cast a vote at such 
election. 



19 

^ Section 4. The Association shall (1) impose no inequitable re- 
strictions on membership and (2) submit to the Administrator true 
copies of its articles of association (which also constitute its b}'- 
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 
pur[:)ose 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 provision.- of the Act, the Administrator may provide such 
hearings as he may deem proper; and thereafter if he'shall find that 
the Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an ap- 
propriate modification in the method of selection of the Code Au- 
thority; provided, that no such modification shall permit anyone not 
a member of the Industry to become a voting member of the Code 
Authority, 

Section G. The Code Authority may adopt its own by-laws, regu- 
lations and rules of procedure ; it may delegate its authority to such 
agencies or committees as it may select. 

Section 7. The Code Authorit}'- shall be responsible for all author- 
ized acts of its appointed agencies or committees. 

Section 8. With a view to keeping the President and the members 
of the Industry informed as to the observance or non-observance of 
the Code, and as to whether the members of the Industry are taking 
appropriate steps to effectuate the declared policy of the Act, the 
Code Authority shall report to the Administrator upon his request 
concerning conditions in the Industry and each member of the 
Industry shall file with the Code Authority reports with resi^ect 
to wages, hours of labor, conditions of employment, number of 
employees, and other matters. 

Section. 9. 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 expressly signifying assent to the Code and sustaining their 
reasonable share of the expenses of administration. The reasonable 
share of the expenses of administration shall be determined by the 
Code Authority, subject to disapproval by the Administrator, on the 
basis of volume of business and other equitable factors. 

Section 10, All confidential information of any nature which 
may be requested by the Code Authority shall be collected through 
an agency selected by the Code Authority and such information 
shall be kept confidential by the agency, except when required by 
the Code Authority for the proper administration of the Code, 
and with the further exception that all such information shall be 
fully available to the Administrator at all times. Collusion by any 
Industry member with any confidential agenc}^ of the Code Author- 
ity shall constitute a violation of this Code. 

Section 11. The Code Authority may hear complaints and at- 
tempt to adjust the same under such rules and regulations as may 
be prescribed by the Administrator. 

Section 12. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose nor shall 



20 

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

Section 13. Any interested party shall have the right of com- 
plaint to the Code Authority and a prompt hearing and decision 
thereon, under such rules and regulations as it shall prescribe, in 
respect to any act of any agency designated by the Code Authority 
to act in its behalf. 

Section 14. Any interested party shall have the right to appeal 
to the Administrator, under such rules and regulations as he may 
prescribe, with respect to any decision, rule, regulation, order, or 
finding made by the Code Authority. 

Section 15. 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 to such GoA^ernment agencies as the Administrator may desig- 
nate; nor shall anything in this Code, relieve any persons of any 
existing obligation to furnish reports to Government agencies. 

Section 16. The Code Authority shall have the power to make 
recommendations as to modification or amendment of this Code 
to the Administrator, which modification or amendment shall 
become effective as part of this Code upon approval by the Admin- 
istrator after such notice and hearing as he may specify. 

Section IT. 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 he 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 — Publicity of Prices, Terms, and Conditions of Sai^e 

Section 1. Each member of the Industry shall within ten (10) 
days after the effective date hereof file with the Code Authority 
printed price lists showing current prices, discounts, terms of pay- 
ment, freight allowances, etc., on all industry products and the 
Code Authority shall immediately send copies thereof to all members 
of the Industry. Prices may be revised from time to time thereafter 
by filing with the Code Authority copies of revised price lists. All 
price lists shall become effective when filed with the Code Authority 
and shall be available to all interested parties. At the same time 
that copies of price lists are sent to the Code Authority, each mem- 
ber of the Industry shall mail copies of his price lists and revisions 
thereof to all his customers. 

Section 2. If at anytime hereafter the Administrator shall give 
his approval to the requirement that subsequent changes or revisions 



21 

of any price lists or terms or conditions of sale as provided in Section 
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 revision thereof 
thereafter filed shall be published or filed five days prior to the 
effective day of any such subsequent changes or revision. Such prices 
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 such of the trade as to which the same may be applicable. 
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 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 Code Authority 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 effec- 
tive date for the changes of such other member first filing as afore- 
said, or, if those changes shall have already become effective, then 
the changes subsequently filed as aforesaid"^, shall become effective 
immediately. 

Section 3. No member of the Industry shall sell directly or in- 
directly any product of the Industry at a lower price or at discounts 
greater or on more favorable terms of payment than those provided 
in his current price lists, filed in accordance Avith the foregoing 
provisions. 

Section 4. When a member of the Industry offers to sell and/or 
sells non-industry and industry products together to the same cus- 
tomer he shall quote and/or invoice separate prices on industry and 
non-industry products, and the combined lump sum price shall not 
be less than the sum of the current market prices of the separate 
products. 

Section 5. No member of the Industry shall give or accept secret 
payment or allowance of rebates, refunds, or unearned discounts 
whether in the form of money or otherwise or extend to certain pur- 
chasers special services or privileges not extended to all purchasers. 

Article VIII — Trade Practices 

Section 1. 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 rcAvarding 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 Imowledge 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 



22 

except so far as such articles are actually used for commercial bribery 
as hereinabove defined. 

Section 2. No member of the Industry shall engage in any mis- 
representation concerning industry products — direct or implied. 

Section 3. No member of the Industiy shall make an invoice or 
contract for industry products which is a false record of a trans- 
action. 

Section 4. No member of the Industry shall induce or attempt to 
induce the cancellation of an order for industry products or the 
breach of a contract between a competitor and his customer or 
distributor. 

Section 5. The following practices constitute unfair methods of 
competition for members of the Industry and are prohibited. 

(a) Defofniation. — The defamation of a competitor by falsely im- 
puting to him dishonorable business conduct, inability to perform 
contracts, questionable credit standing, or by other false representa- 
tions regarding his business conduct, or by the false disparagement 
of the gTade or quality of his goods. 

(b) Threats of LUigation. — 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 comj^etitors or intimidating their customers. 

(c) Espioiuige of Coinpetltors. — Securing confidential information 
concerning the business of a competitor by a false or misleading 
statement or representation, by a false impersonation of one in 
authority, by bribery, or by any other unfair methods. 

Section 6. 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 IX — General 

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. 

Section 2. Corporations shall be considered to be affiliated with 
any corporate member of the Industry (herein described as the 
" i^arent corporation ") which own a majority of the outstanding 
voting capital stock of the other. In the event of the provisions of 
Article VII being observed by any such affiliated corporation of 
such parent corporation, then the parent corporation need not com- 
ply with the requirements of Article VII in respect to prices, terms, 
and conditions of sale where such sales are made to such affiliated 
corporation. 

Section 3. Articles VII and XI shall not appl}'^ to products ex- 
ported from the United States. 

Section 4. Nothing contained in this Code shall be construed as 
prohibiting any member of the Industry from exercising all its law- 
ful patent rights, or as requiring an}'^ member of the Industry to do 
any act in conflict with the terms of an}- valid patent licensing 
agreement. 



23 
Article X — Modification 

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

Section 2. This Code, except as to provisions required by the 
Act, may be modified on the basis of experience or changes in cir- 
cumstances, such 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. 

Section 3. The provisions of this Code shall remain in effect 
unless and until so modified or eliminated, or until the expiration of 
the Act namely June 16, 1935, or sooner if the President shall by 
proclamation or Congress by joint resolution declare the emergency 
recognized by Section 1, Title I of. the Act ended. 

Article XI — Selling Below Cost 

Section 1. It shall constitute a violation of this Code for any 
member of the Industry to sell any industry products at less than 
his allowable costs, except to meet the competition of another mem- 
ber of the Industry. 

Section 2. Allowable costs shall include all direct labor cost, 
direct raw^ material cost (inclusive of transportation and shrinkage) 
and a proportionate share of all indirect expenses, inclusive of de- 
preciation and depletion allowances computed according to income 
tax procedure; but allowable costs shall not include return on in- 
vested capital, interest on borrowed capital, developmental expense, 
selling expense nor administrative expense. 

Article XII — 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 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 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 prac- 
tice 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. 

Section 2. Wlien 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. 



24 

Article XTII — Price Increases 

Section 1. Whereas the policy of the Act to increase real purchas- 
ing power will be made more difficult of consummation if pricas of 
goods and services increase as rapidly as wages, it is recognized that 
price increases except such as may be required to meet individual 
cost should be delayed. But when made such increases should, so 
far as possible, be limited to actual additional increases in the seller's 
costs. 

Article XIV — Effective Date 

Section 1. This Code shall become effective on the second Monday 
aft^r its approval by the President. 



Approved Code No. 375. 
Registry No. 1036-05. 



o 



Approved Code No. 376 

CODE OF FAIR COMPETITION 

FOR THE 

AIR VALVE INDUSTRY 

As Approved on March 31, 1934 



OKDER 



Approving Code of Fair Competition for the Air Valx'e Industry 

An api^lication 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 Air Valve 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 
ro "fnp r T'psiripni" ' 

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 ho. 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, 
AdfTiinistrator for Industrial Recovery. 
Approval recommended: 
A. R. Glancy, 

Division Administrator. 



Washington, D.C, 

March 31 

50302° 482-4 34 (25) 



March 31, 1934. 



EEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sm: This is a report on the Code of Fair Competition for the 
Air Valve Industry as revised after a public hearing- conducted in 
Washington, D.C. on March 12, 1934, in accordance with the provi- 
sions of the National Industrial Recovery Act. 

PROVISIONS AS TO WAGES AND HOURS 

Except for accounting, clerical and office employees, office boj's 
and office girls, apprentices and handicapped persons, all male em- 
ployees shall be paid not less thrai forty cents per hour; all female 
employees shall be paid not less than thirty-five cents per hour, 
except, when female employees perform substantially the same work 
as male employees then they 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. Accounting, clerical 
and office employees shall be paid at the rate of not less than fifteen 
dollars per week. Office boys and office girls shall be paid not loss 
than eighty percent of the above provided minimum wage for ac- 
counting, clerical and office employees, and the total number of such 
office boys and office girls shall not exceed more than five percent of 
the total office employees of an employer, except that any employer 
may employ at least two such persons. The number of apprentices 
employed by any employer shall not exceed more than five percent 
of the total number of factory employees of such employer. Persons 
whose earning capacity is limited because of age, physical or mental 
handicap may be employed on light work at a wage beloAv the mini- 
mum established by this Code. Equitable adjustment of compensa- 
tion of employees receiving more than the minimmn rates of pay 
shall be made by all employers Avho have not heretofore made such 
adjustments, within thirty days after approval of this Code. 

Forty hours shall be the maximum number of working hours for 
any one week or eight hours for any one day except that during any 
six weeks in any six months' period, forty-eight hours per week is 
permissible. The foregoing limitations shall not apply to the fol- 
lowing: those engaged in executive, managerial and supervisoiy 
capacities who regularly receive thirty-five dollars or more per week, 
outside salesmen; employees engaged solely in maintenance repair 
work, truckmen, firemen and engineers who shall be permitted to 
work not more than nine hours in anj'' one day or forty-four hours 
in an}'' one week, except that during any six weeks in any six months' 
period fo]'ty-eight hours per week is permissible; watchmen, who 
may be employed not more than fifty-six hours in any one week; 

(26) 



27 

accounting, clerical or office employees who may be employed nine 
hours per day but not more than forty hours per week. All em- 
ployees, except accounting, clerical or office employees, those engaged 
in executive, managerial or supervisory capacities, outside salesmen 
and watchmen, shall be paid one and one-half times the normal rate 
of pa}^ for hours worked in excess of eight hours per day or forty 
hours per week. 

ECONOMIC EFFECTS OF THE CODE 

Annual sales of the Industry decreased fifty-eight percent from 
1929 to 1933. The products of the Industry are used principally in 
new building operations. The Eesearch and Planning Division's 
report states that the Industry employed four hundred and forty 
nine wage earners in 1928 and only two hundred and sixty two in 
1933, employment decreasing forty-two percent during that period. 
The President's Reemployment Agreement effected a slight increase 
in employment. 

Additional workers will be absorbed as new construction and re- 
placement continue. The minimum wage rate established by this 
Code and the provision for an equitable adjustment of wages above 
the minimum will materially increase the purchasing power of the 
employees in this Industry and the trade practice provisions of this 
Code are expected to remedy the unfair trade practices that have 
existed in the past in this Industry. 

FIXDINGS 

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

(b) Said Industr}^ normally emploj^s not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant as- 



28 

sociation 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 op- 
press small enterprises and will not operate to discriminate against 
them. 

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

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

Hugh S. Johnson, 

Admirdstrat or. 
Washington, D.C, 

March 31, 19S4^ 



CODE OF FAIR COMPETITION FOR THE AIR VALVE 

INDUSTRY 

Article I — Purposes 

1. To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code 
of Fair Competition for the Air Valve 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 "Air Valve Industry " as used herein means and in- 
cludes the manufacturing and distributing by manufacturers under 
their own trade names of air and vacuum valves for venting steam 
radiators and pipe lines and auxiliaiy ecjuipment. 

2. " President " means the President of the United States of 
America. 

3. "Association " means the Air Valve Association, a trade associa- 
tion. 

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

5. The term " Employee " as used herein includes anyone en- 
gaged in the Industry in any capacity receiving compensation for 
his services, irrespective of the nature or method of payment of such 
compensation. 

6. The term " Employer " as used herein includes anyone by whom 
any such employee is compensat'Cd or employed. 

7. " Effective Date '' means the second Monday after this Code is 
approved by the President. 

8. " Member of the Industry " or " Member " means any individual, 
partnership, association, corporation or other form of enterprise 
engaged in the Industry as above defined, either as an employer 
or on his or its own behalf. 

Article III — Hours 

Section 1. No employee, excluding accounting, clerical and ofRco 
employees, shall be employed in excess of forty (40) hours in one 
week, or eight (8) hours in any twenty-four (24) hour period, 
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, providing one and one-half times the normal rate of 
pa}' shall be paid for hours worked in excess of eight (8) hours 
per day and forty (40) hours per week. The foregoing limitations 
shall not apply to : 

(29) 



30 

(a) Those engaged in executive, managerial and supervisory 
capacities (except foremen) who regularly receive thirty-five (35) 
dollars or more per week. 

(b) Outside salesmen. 

(c) Employees engaged solely at maintenance and repair work, 
truckmen and engineers, who may be permitted to work not more 
than nine (9) hours in any one day, or forty-four (44) hours in any 
one week. These employees may also be permitted to work forty- 
eight (48) hours per week during any six (6) weeks in any six (6) 
months period. One and one-half times the normal rate of pay shall 
be paid persons embraced in this subsection (c) for hours worked 
in excess of eight (8) hours per day and forty (40) hours per week. 

(d) Watchmen, who may be employed not more than fifty-six 
(56) hours in any one (1) week, except watchmen in closed plants 
to whom this limitation shall not apply. 

(e) Cases of emergency such as the production of equipment or 
repairs for breakdown service, or when additional skilled employees 
are not available and the restriction of hours of skilled workers 
would unavoidably reduce production or limit the work available to 
other workers. One and one-half times the normal rate of pay shall 
be paid for hours worked in excess of eight (8) hours per day and 
forty (40) hours per week. 

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

Sectign. 3. No employer shall knowingly permit any employee to 
work for any time which, when totaled w^th that already performed 
with another employer or employers exceeds the maximum permitted 
herein. 

Arttolb IV — Wages 

Sectiox 1. No male employee shall be paid at less than the rate 
of forty (40) cents per hour and no female employee shall be paid at 
less than the rate of thirty-five (35) cents per hour, except that: 

(a) Accounting, clerical and office employees shall be paid at not 
less than $15.00 per week. 

(b) Office boys and office girls shall be paid at not less than eighty 
(80) per cent of the above provided minimum wage for accounting, 
clerical and office employees, provided that the total number of such 
office boys and girls receiving less than such minimum wage shall 
not exceed, in any calendar month more than five (5) per cent of the 
total office employees of the employer, except that any emplo3'er may 
employ at least two (2) such persons as above provided. 

(c) Nothing in this Article IV shall apply to or affect a bona fide 
apprentice employed under a system or course of training which, 
when completed, will make the apprentice a skilled mechanic. At no 
time shall new apprentices be admitted to apprenticeship by any 
employer when such action will bring their total number to more 
than five (5) per cent of the total number of factory employees of 
such employer. 

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



31 

Section 3. The Code Authority may present for approval of the 
Administrator, after notice and hearing, recommendations as to 
upward adjustments in minimum wages for specific localities. 

Section 4. Equitable adjustment of compensation of employees 
receiving more than the minimum rates of pay 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 5. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees, and where they displace men, they shall receive the same 
rate of earnings as the men they displace. The Code Authority shall 
within ninety (90) days after the effective date of this Code file 
with the Administrator a description of all occupations in the Indus- 
try in which both men and women are employed. 

Section 6. 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 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 j^ersons. 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 employees. 

Section 7. Wages shall be exempt from any payments for pen- 
sions, insurance, or sick benefits other than those voluntarily paid 
by wage earners, or required by State laws. Employers agree that 
wages shall be paid at least at the end of every two-week period, 
and salaries at least at the end of every month and that no employer 
shall withhold wages. 

Section 8. The employer or his agent shall accept no rebates di- 
rectly or indirectly on such wages nor give anything of value or 
extend favors to any person for the purpose of influencing rates of 
wages or the working conditions of his employees. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industry. No person under eighteen (18) years of 
age shall be employed at operations or occupations which are hazard- 
ous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator within ninety (90) 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 any State empowered to issue employment 

50302° 482-4 34 2 



32 

or age certificates or permits showing that the employee is of the 
required age. 

Section 2. In compliance AA'ith Section 7 (a) of the Act it is pro- 
vided that : 

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

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

(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 provide for the safety and health 
of emploj'ees during the hours and at the places 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 the Code. 

Section 5. No provision in this Code shall supersede any State 
or Federal Law which imposes more stringent requirements on em- 
ployers as to age of emploj^ees. wages, hours of work, or as to 
safet}^ sanitar}^ or general working conditions, or insurance, or fire 
protection, than are imposed by this Code. 

Section 6. Official copies of labor provisions of this Code shall 
be kept conspicuously posted at all times in each shop, establishment, 
or separate unit, where easily accessible to all employees. 

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

Article VI — Organization 

Section 1. To further effectuate the policies of the Act, a Code 
Authority is hereby constituted to cooperate with the Administrator 
in the administration of this Code. 

Section 2. The Code Authority shall consist of the members of 
the Board of Directors of the Association, provided for in the by-laws 
of the Association, together Avith a member selected from the Industry 
at large. In addition to membership as above provided, there may 
be not more than three (3) members, without vote and without 
expense to the Indu.strj^, to be appointed by the Administrator, to 
serve for such term or terms as he may specify. No two members 
of the Code Authority shall be affiliated with any single member 
of the Industry. 

Section 3. The Association is hereby designated as the agencj^ to 
conduct the election of the Member at large of the Code Authority 



33 

by members of the Industry who are not members of the Association, 
within thirty (30) days after the effective date of this Code, ancl 
any subsequent elections for the successors of such Member at large. 
Such member shall be elected to serve for a term of one (1) year. 
or until his successor is elected. In the event that the position or 
Member at large on the Code Authority becomes vacant, a special 
meeting shall be called by the Code Authority within thirty (30) 
days for an election to fill the vacancy. ^Totice of the time and place 
of all elections shall be sent by registered mail, at least ten (10) 
days in advance of any election, to all members of the Industry who 
are non-members of the Association and who are registered with the 
Secretary of the Association or whose names and addresses can be 
ascertained by diligent inquiry, and voting at such election may be 
by person, by proxy, or by letter ballot. Each member of the In- 
dustry who is not a member of the Association shall have one vote. 
A plurality of the number of votes cast shall be necessary for 
election. 

Section 4. In the event that all members of the Industry hereafter 
join the Association no further election of the Member at large for 
non-members shall be held until such time as members of the Industry 
who are not members of the Association exist. 

Section 5. The Code Authority shall have the following further 
powers and duties to the extent permitted by the Act, the exercise 
of which shall be reported to the Administrator : 

(a) To insure the execution of the provisions of this Code and 
provide for the compliance of the Industry with the provisions of 
the Act under such rules and regulations as may be prescribed by 
the Administrator. 

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

(c) To appoint committees to carry out its duties such as the fol- 
lowing: Administration, Compliance, Finance, Industrial Kelations, 
Trade Relations, Subdivisional, and such other committees as may 
be required. 

(d) To obtain from members of the Industry such information 
and reports (sworn or unsworn as the Code Authority may specify) 
as are required for the administration of the Code. No individual in- 
formation, statistics or reports shall be disclosed to any other mem- 
ber of the Industry or any other party except to such governmental 
agencies as may be directed by the Administrator. 

(e) To establish, if found desirable, subject to the approval of 
the Administrator, classifications, dimensional standards, and qual- 
ity and/or performance specifications for products of the Industry. 

(f) 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. 

(g) 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. 



34 

(h) To secure from members of the Industry assenting to the Code 
an equitable and proportionate payment of the reasonable expenses 
of maintaining the Code Authority and its activities, 

(i) To cooperate with the Administrator in regulating the use of 
any National Recovery Administration insignia solely by those mem- 
bers of the Industry who have assented to, and are complying with, 
this Code. 

(j) 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, Uniform Cost Accounting, Industry Merchan- 
dising Plans, System of Exchange of Credit Information, Inequali- 
ties Affecting the Stability of the Industry, which recommendations 
after such notice and hearing as the Administrator may specify shall 
become effective upon approval by the Administrator or the Presi- 
dent with the same force and effect as if originally made a part 
hereof. 

(k) 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 Adminis- 
trator as amendments to this code and such other codes. 

Section 6. In order that the Code Authority shall at all times 
be truly representative of the Industry and in other respects com- 
ply with the provisions of the Act, the Administrator may provide 
such hearings as he may deem proper; and thereafter if he shall 
find 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. 

Section 7. The Association, or any other trade association, di- 
rectly 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 mem- 
bership, organization, and activities as the Administrator may deem 
necessary to effectuate the purposes of the Act. 

Section 8. In addition to the information required to be sub- 
mitted to the Code Authority, all or any of the persons subject to 
such code, 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 Admin- 
istrator may designate; nor shall anything in this code relieve any 
person of any existing obligation to furnish reports to Government 
agencies. 

Section 9. 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- 



35 

taining their reasonable share of the expenses of its administration. 
The reasonable share of the expenses of administration shall be 
determined by the Code Authority, subject to review by the Admin- 
istrator, on the basis of volume of business, and/or such other factors 
as may be deemed equitable to be taken into consideration. 

Section 10. 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 Admin- 
istrator, 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 11. 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 anyone for any action or omission to 
act under this Code, except for his own wilful misfeasance or 
nonfeasance^^ 

Article VII — Publicity op 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 pubhsh his prices, terms and 
conditions of sale on all products, with the prices, terms and condi- 
tions of sale affecting each class of customer in the territory to which 
such prices, terms and conditions of sale apply. Coincident with such 
publication, each member of the Industry shall file with the Code 
Authority and the Code Authority shall immediately distribute to 
all m.embers of the Industry a complete schedule of such prices, 
terms and conditions of sale. 

Section 2. In the event of any change by any member of the In- 
dustry 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 approval 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 such price changes 
shall be available to the trade to which it is applicable, on the effec- 
tive date of such change, and each such member shall coincidentally 
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 3. In the event that 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 



36 

member first mentioned 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 
member first filing as aforesaid, or if such change has already become 
effective, then the changes subsequently filed shall become effective 
immediatel3^ 

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, terms and conditions of sale then in eff'ect and pub- 
lished in the manner described herein. Each member of the Indus- 
try shall have the right, individually, to publish new prices, terms 
and conditions of sale, from time to time, as herein provided. 

Article VIII — Publicity or Trade Qualifications 

Seciton 1. Within thirty (30) days after the effective date of 
this Code, and until a merchandising plan shall be approved for the 
Industry, each member of the Industry shall publish and file with 
the Code Authority all qualifications which have been established by 
him to determine the prices, terms or conditions of sale made appli- 
cable by him to the different classes of his trade, for products 
covered by this Code. He shall publish and file promptly with the 
Code Authority any changes made by him in such qualifications and 
any additional qualifications. 

Section 2. 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 trade who buy at less than his published 
prices, grouped according to his own stated qualifications then in 
effect. The names and locations so filed shall be available to 
customers 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 his consent. 

Article IX — Specific Trade Practices 

Rule 1. All sales of products covered by this Code shall be made 
on the basis of a written quotation or bill of sale. Said quotation or 
bill of sale shall be correctly dated and shall be in accordance with 
current published prices and shall be so listed as to enable checking 
with the current price sheet. Outstanding quotations for specific 
projects may be protected for a period of thirty (30) days beyond 
date of price change (or in the case of quotations made for specified 
projects, havinw a definite date for public opening of bids, protection 
may be given lor sixty (CO) da3^s beyond bid oj^ening), provided a 
list of such outstanding quotations is filed with the Code Authority 
within ten (10) days after price change. 

Rule 2. All quotations shall be plainly marked " Subject to change 
without notice and void after sixty (60) days," and all written quota- 
tions shall so state, subject, however, to Rule 1. 

Rule 3. It shall be deemed an unfair method of competition to 
sell or dispose of any product of this industry on any lower basis 



37 

than that of the current published price sheet of each individual 
manufacturer, less such discounts as apply under these Rules, except 
as provided in Rule 9. 

Rule 4. It shall be deemed an unfair method of competition to 
make a particular sale of products of the Industry contingent upon 
the sale of any other goods or materials not covered by this Code. 

Rule 5. It shall be deemed an unfair method of competition to 
make or cause or permit to be made or published any false, untrue, 
or deceptive statement by way of advertisement or otherwise con- 
cerning the materials of construction used in, the operating charac- 
teristics of, or the quality, size, origin, or preparation of any product 
of the industry, sold or offered for sale. 

Rule 6. It shall be deemed an unfair method of competition to 
mark or brand any product of the industry in an}' manner which 
has the tendency to mislead or deceive customers or prospective cus- 
tomers as to the substance, grade, quality, size, quantity, origin, or 
preparation of any product of the industry sold or offered for sale. 

Rule 7. It shall be deemed an unfair trade practice to accept 
blanket orders; therefore, all cpjotations and orders must specify an 
itemized bill of goods. If, after a quotation has been made, the spec- 
ified reqiurements are changed, a new quotation shall be issued based 
upon published prices prevailing at that time. If, after an order 
has been accepted the requirements are changed, deductions shall be 
credited on the basis of prices prevailing at the time order was placed 
and additions shall be charged at the price prevailing at the time 
additions are made. 

Rule 8. No employer shall sell or exchange any product of the 
Industry, manufactured by him, at a price, or upon terms and condi- 
tions, which will result in the purchaser paying for the goods re- 
ceived, less than the allowable cost thereof to the seller, determined 
in accordance with the system and methods of costing formulated 
under the provisions of Section 10 of Article VI : provided, however, 
that dropped lines, or seconds, or inventories which must be con- 
verted into cash to m.eet emergency needs may be disposed of by 
any emploj^er, at any price and on any terms and conditions, but 
only if such employer, not less than two (2) weeks before such dis- 
posal, has filed with the Code Authority, a statement in writing, 
setting forth the fact of, and reasons for, such proposed disposal, and 
Code Authority has not, before the termination of such two (2) 
weeks' period, in writing disapproved the proposed disposal ; pro- 
vided that no article so approved for sale as obsolete, or for emer- 
gency needs shall be reinstated without approval of the Code Au- 
thority; and, provided further, that a member of the Industry sell- 
ing or wishing to sell, below his own allowable cost to meet the com- 
petition of a competitor whose allowable costs are lower, may do so 
provided that he has first so reported to the Code Authority and in 
such report has cited the facts of the competition which caused him 
to take such action. 

Rule 9. Consignment of goods or delayed billing shall be deemed 
an unfair trade practice, except under conditions approved by the 
Code Authority. 

Rule 10. It shall be deemed a violation of these Rules to enter 
into or be a party to a written or verbal agreement or understanding 



38 

which serves directly or indirectly to affect the price or terms of 
^ale established by a current published price sheet, or which serves 
in any way to defeat the spirit and purpose of these Rules. How- 
ever, nothing herein contained shall be construed to prevent a mem- 
ber of the Industry from cooperating with or instructing prospec- 
tive purchasers as to the proper application or installation of said 
member'^ products. 

Rule 11. All products covered by this Code shall be sold f.o.b. 
factory shipping point, or the equivalent of freight may be allowed 
or prepaid to freight station nearest to destination. 

Rule 12. No member of the Industry shall sell his product subject 
to a guarantee more favorable to the purchaser than the following: 

(a) No guarantee to furnish parts to replace defective material 
or workmanship .shall extend beyond one year from date of shipment. 

(b) Replacements of defective material shall be f.o.b. manufac- 
turer's factory subject to manufacturer's inspection. 

(c) Foreign component part equipment guarantee shall be limited 
to the warrant}^ of its manufacturer. 

Rule 13. It shall constitute an unfair trade practice for any mem- 
ber, or any authorized employee or agent to furnish heating plans 
and/or specifications to architects or others, unle,ss such plans or 
service shall be charged for as set forth by the Code Authority with 
the approval of the Administrator; provided, that nothing in this 
rule shall limit the right of members of this Industry to furnish 
catalogues, dimensioned .sketches, application drawings and the usual 
trade or advisory information concerning the products of the Indus- 
try and their application and use to Architects, Engineers, Con- 
tractors, and others, either for general or specific cases. 

Rule 14. No member shall make any false or deceptive statements 
regarding the business or business conduct of a competitor. 

Rule 15. No member shall accept, for the purpose or with the 
effect of influencing a sale, securities, bonds, mortgages, stock or 
other personal or real property at other than the current market 
value thereof as whole or part paj^ment for services rendered or 
material furnished. 

Rule 16. No member shall induce or attempt to induce the can- 
cellation of any order for a specific installation given to any other 
member by his or itg customers. 

Rule 17. No member shall make secret payment or allowance to 
customers of rebates, credits, refunds, commissions or unearned dis- 
counts, whether in the form of money or otherwise. 

Rule 18. No member shall sell equipment as listed in Section 1, 
Article II without identifjdng trade mark or the name of the 
manufacturer or distributor clearly marked thereon. 

Rule 19. 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 emplo3'ee, 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. Com- 
mercial briber}' provisions shall not be construed to prohibit free 



39 

and general distribution of articles commonl^^ used for advertising 
except so far as such articles are actually used for commercial bribery 
as hereinabove defined. 

Article X — General Provisions 

Section 1. No provision of this Code shall be construed or applied 
in such a manner as to — 

(a) Promote or permit monopolies or monopolistic practices. 

(b) Permit or encourage unfair competition. 

(c) Eliminate, oppress, or discriminate against small enterprises. 
Section 2. This Code is hereby expressly made subject to the right 

of the President, pursuant to Section 10 (b) of Title I of the Na- 
tional Industrial Kecovery Act, from time to time to cancel or mod- 
ify Siuy order, approval, license, rule or regulation issued under 
Title I of said Act, and specifically but without limitation to his 
right to cancel or modify his order approving this Code, or any 
conditions imposed by him upon such approval. 

Section 3. This Code, except as to provisions required by the Act, 
may be modified on the basis of experience or changes in circum- 
stances, such modifications to be based upon application to the Ad- 
ministrator and such notice and hearing as he may specify, and to 
become effective on approval of the Administrator. Any such appli- 
cations may be made by 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 rec[uire 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. 

Article XI 

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



Approved Code No. 376. 
Registry No. 1335-06. 



O 



Approved Code No. 377 
CODE OF FAIR COMPETITION 

FOB THE 

RECLAIMED RUBBER MANUFACTURING 
INDUSTRY 

As Approved on April 2, 1934 



ORDEE 



Code of Fair Competition for the Reclaimed Rubber 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 Reclaimed Rubber Manufacturing Indus- 
try, and hearings having been duly held thereon and the annexed 
report on said Code, containing findings with respect thereto, having 
been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 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, Section 3, insofar as they prescribe a 
waiting period between the filing with the designated agency 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 either within a period of 60 days from the effective date of 
this Code or after the completion of a study of open price associations 
now being conducted by the National Recovery Administration. 

Hugh S. Johnson, 
AdTninistrator for Industrial Recovery. 

Approval recommended : 
K. M. Simpson, 

Division Administrator. 

Washington, D.C, 

April ^, 193^. 

50577° 482-7 34 (41) 



EEPOKT TO THE PRESIDENT 

The President, 

The 'White House. 
Sir : The public hearing on the Code of Fair Competition for the 
Reclaimed Rubber Manufacturing Industry, submitted by the Rub- 
ber Reclaimers Association, 500 Fifth Avenue, New York, N.Y., was 
conducted in Washington, D.C., on February 8th, 1934, in accord 
with the provisions of the National Recovery Act, The Association 
claims to represent 90 percent of the 'Industry. 

HOURS OF WORK 

Under the Code no employee (with the exceptions below) shall 
work more than forty (40) hours per week averaged over each six 
months' period of any calendar year, and not in excess of forty-eight 
(48) hours in any one week. For all hours worked in excess of 
forty (40) hours in any one week or eight (8) hours in any one day, 
overtime shall be paid at the rate of time and one-third. 

Maintenance men, engineers, firemen, electricians, shipping crews, 
watchmen, and elevator operators shall not work more than forty- 
eight (48) hours in any one week, except in cases of emergency 
when o^■ertime shall be paid at the rate of time and one-third. 

Accounting, clerical, office, service and sales employees (except 
outside salesmen) are limited to forty (40) hours per week averaged 
over a period of one month but in no case shall they work more 
than fortj' -eight (48) hours in any one week. 

Employees engaged in a supervisory capacity who receive thirty- 
five ($35.00) dollars per week or less on a salaried basis, are limited 
to forty (40) hours per week averaged over each six (6) months' 
period, but in no case shall they work more than forty-eight (48) 
hours in any one week. Employees engaged in any managerial, 
executive, supervisory or technical capacity receiving more than 
thirty-five ($35.00) dollars weekly and outside salesmen are not 
restricted to any maximum hours. 

WAGES 

This Code provides for a minimum wage of $0,371^ per hour. 
Apprentices may be paid $0.3*21/2 per hour during a sixty (60) day 
apprenticeship. Such apprentices are limited to five (5%) percent 
of factory emplo3^ees in any one establishment. 

Minimums for salaried employees range from $12.00 per week in 
towns of less than 2500 population to $15.00 per week in cities over 
500,000. Office boys and girls may be paid not less than 80% of 
these minimums but may not constitute more than five percent of the 

(42) 



43 

total office employees in any one establishment. Provision is made 
for equitable adjustments of pay schedules of employees above the 
minimum. 

ECOXOMIC ErrECTS OF THE CODE 

Reclaimed rubber is a raw material used in the manufacture of 
rubber products. Its demand is based on the volume of production 
of such products and upon the price of crude rubber. "Wlien the price 
of the latter declines to less than $0.10 per pound demand for re- 
claimed rubber is severely curtailed. Consumption of reclaimed 
rubber declined from 217,000 long tons in 1929, to 80,800 long tons in 
1933, or 62.73% . During the same period the average wage rate pre- 
vailing in the Industry declined 14.6%. Approximately twenty- 
three hundred (2300) wage earners were employed by the Industry 
in 1929, but in 1932 employment had declined 39% below this level. 
The maximum hours prescribed in the code should effect the employ- 
ment of approximately as many wage earners as were engaged in 
1929. 

nXDIXGS 

The Deputy Administrator in his final report to me on said Code, 
having found as herein set forth and on the basis of all 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 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 industiy 
for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agri- 
cultural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

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

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



44 

(e) The Code is not designed to and will not eliminate or oppress 
^^H\ ^i^*®^P^ises and will not operate to discriminate against them. 

(±) Ihose engaged m 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 
KespectfuUy, 

Hugh S. Johnson, 

A o ^^o^ ■Administrator. 

April 2, 1934. 



CODE OF FAIR COMPETITION FOR THE RECLAIMED 
RUBBER MANUFACTURING INDUSTRY 

To effect the policies of Title I of the National Industrial Recov- 
ery Act, the following provisions are hereby established as a Code 
of Fair Competition for the Reclaimed Rubber Manufacturing 
Industry, and shall be the standards of fair competition for this 
Industry and binding ir^on every member thereof. 

Article I 

A. DEFINITIONS 

Section 1. The term " Reclaimed Rubber Manufacturing Indus- 
try " or " Industry " as used herein, includes the manufacture for 
sale of reclaimed rubber together with such related branches or sub- 
divisions as may from time to time be included under the provisions 
of this Code by the President or the Administrator, after such 
notice and hearing as he may prescribe. 

Section 2. The term " member of the Industry " includes, but 
without limitation, any individual, partnership, association, corpora- 
tion, or other form of enterprise or any subsidiary or affiliate of 
the same engaged in the Industry, either as an employer or on his 
or its own behalf. 

Section 3. The term " member of the Code " includes any member 
of the Industry who shall expressly signify assent to this Code. 

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 term "Association " as used herein means the Rub- 
ber Reclaimers Association, Incorporated, a nonprofit-sharing cor- 
poration organized under the laws of the State of New York. 

Section G. The term " 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 xYdmin- 
istrator for Industrial Recovery. 

Section 7. Population for the purposes of this Code shall be deter- 
mined by reference to the latest Federal Census. 

Article II 

A. ADMINISTRATION 

Section 1. There is hereby constituted a Code Authority, consist- 
ing of three persons, who shall be selected by a majority vote of the 
members of the Code in numbers and in volume of sales, excluding 
any sales made to subsidiary or affiliated companies. The Admin- 
istrator, in his discretion, may appoint not more than three addi- 

(45) 



46 

tional members (without vote) to represent the Administrator with- 
out expense to the Industry. 

(a) One alternate shall be selected for each member of the Code 
Authority, with full power to vote in the absence of his principal. 
Such alternates shall be selected in the same manner as their prin- 
cipals. 

(b) No two members of the Code Authority nor their alternates 
shall be affiliated with any single member of the Industry. 

(c) In order that the Code Authority shall at all times be truly 
representative of the Industr}^ 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) Should any matter come before the Code Authority which 
specifically involves acts, conduct, or the interest of a member of the 
Industry with which any member of the Code Authority is asso- 
ciated, or employed, such member of the Code Authority shall be 
disqualified to act in such matter. The designated alternate shall act 
in place of the disqualified member of the Code Authority. 

Section 2. Each trade or industrial association directly or in- 
directly participating in the selection or activities of the Code Au- 
thority shall (a) impose no inequitable restrictions on membership, 
and (b) submit to the Administrator true copies of its articles of 
association, by-laws, regulations, and any amendments when made 
thereto, together with such other information as to membership, 
organization, and activities as the Administrator may deem neces- 
sary to effectuate the purposes of the Act. 

Section 3. The Code Authority shall have the duties and power 
prescribed in this Code, including the following : 

(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. Any such 
by-laws, rules and regulations shall be reported to the Administrator 
immediately upon adoption thereof. 

(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 b}^ 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 an}'^ government 
agency. No individual reports shall be disclosed to any other mem- 
ber of t)ie Industry or to any other party except to such govern- 
mental agencies as may be directed by the Administrator. 



47 

(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 coordi- 
nation of this Code with such other codes as may be related to the 
Industry. 

(f ) To secure from members of the Code an equitable and propor- 
tionate 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 bj- those members of the Industry who 
have assented to and are complying with this Code. 

(h) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the Industry in their relations 
with each other or with other trades or industries. 

(i) 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 accord 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 same or unless he shall fail to 
disapprove same after thirty days notice to him of the intention to 
proceed with such action in its original or modified form. 

Section 4. The Association is hereby designated as the agency 
for the collection of statistics, data, reports, and information under 
the Code. 

(a) Every member of the Industry shall prepare and file with 
the Association, at such times and in such manner and form as the 
Code Authority may designate such information and reports perti- 
nent to the operation of this Code as the Administrator may from 
time to time require. Such reports and/or records may be' either 
sworn or unsworn as required. 

(b) Any refusal or persistent or deliberate neglect by any mem- 
ber of the Industry to file or furnish information required uncler this 
Article shall constitute an unfair trade practice and a violation of 
this Code. 

Section 5. Each member of the Code shall be entitled to parti- 
cipate in the activities of the Code Authority in connection with the 
administration of the Code. Any other member of the Industry may 
become entitled to participate by becoming a member of the Code. 
Each member of the Code shall bear an equitable share of the cost 
of maintenance of the Code Authority, either by becoming a member 
of the Association, or by paying to the Association a sum equal to 
his reasonable proportionate share of the expenses incurred in the 
administration of this Code, as determined by the Code Authority, 
subject to approval of the Administrator. The Association, as a 
disbursing agency, shall defray the expenses of the administration 
of this Code incurred by the Code Authority. 



48 
Article III 

A. INDUSTRIAL RELATIONS POLICIES 

Section 1. Employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

Section 2. No employee and no one seeking employment shall ba 
required as a condition of employment to join any company union 
or to refrain from joining, organizing, or assisting a labor organiza- 
tion of his own choosing. 

Section 3. Employers shall comply with the maximum hours of 
labor, minimum rates of pay, and other conditions of employment 
approved or prescribed by the President. 

Section 4. No person under 16 years of age shall be employed in 
the industry. No person under 18 years of age shall be employed 
on any manufacturing operations involving mills of any types, 
strainers, or debeaders. 

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. 

Section 6. No employer shall re-classify any emploj^ee or the 
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 7. 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 protec- 
tion, than are imposed by this Code. 

Section 8. Every member of the Industry shall post in conspicuous 
places in all departments of his establishment or establishments 
cojDies of Articles III and IV of this Code. 

Article IV 

A. HOURS 

Section 1. Except as herein otherwise provided, no employee shall 
be permitted to work in excess of 40 hours per week, averaged over 
each six months' period of any calendar year, provided that no such 
employee shall be permitted to work more than 48 hours in any one 
week. For all hours worked in excess of 40 hours in any one Aveek, or 
eight hours in any one da}'', overtime shall be paid at the rate of 
time and one third. It is the intent that the hours worked by em- 
ployees in any one day under this Section shall be consecutive, except 
that reasonable provision may be made for eating period. 

Section 2. Maintenance men, engineers, firemen, electricians, ship- 
ping crews, watchmen, and elevator operators shall not be permitted 
to work more than 48 hours in any one week. Provided, however, 
that this limitation of hours shall not apply in cases of emergency, 



49 

involving breakdown and dangers to life and property, but in such 
cases all hours worked in excess of 48 hours in any one week, shall 
be paid for at the rate of time and one-third. 

Section 3. Except as herein otherwise provided, accounting, cleri- 
cal, office, service and sales employees shall not be permitted to work 
in excess of 40 hours per week averaged over a period of a month, 
nor more than 48 hours in any one week. 

Section 4. Emploj'ees engaged in a supervisory capacity in factory 
operations who receive $35.00 per week or less on a salaried basis, 
shall not be permitted to vrork in excess of 40 hours per week, 
averaged over each six months' period of any calendar year, provided 
that no such employee shall be permitted to work more than 48 hours 
in any one week. 

Section 5. The maximum hours fixed in Sections 1, 2, 3 and 4 shall 
not apply to employees in any managerial, executive, supervisory, 
or technical capacity and to employees on their immediate staffs, 
provided they regularly receive more than $35.00 per week; nor to 
any outside salesmen. 

Section 6. No employer shall knowingly permit any employee to 
work for any time which, when totaled with that already performed 
with another employer or employers in this industry, exceeds tho 
maximum permitted herein. 

B. W^AGES 

Section 1. Except as hereinbelow otherwise provided no employee 
shall be paid in any pay period less than at the rate of thirty-seven 
and one-half cents ($0.3714) per hour. Apprentices, during an 
apprenticeship of not more than sixtj^ days, may be paid not less 
than at the rate of thirty-two and one-half cents ($0.32i/^) per hour. 
Such apprentices shall be understood as persons having less than 
sixty days previous experience or employment in the Industry and 
shall not constitute more than 5% of the factory employees in the 
emplo}' of any member of the Industry. Provided, however, that if 
any member of the Industry finds such restriction to 5% too strin- 
gent such member may appeal to the x\dministrator who may grant 
an exception. 

Section 2. No salaried employees shall be j^aid less than at the 
rate of: 

$15.00 per week — In cities over 500,000 population or in the 

immediate trade area of such a city. 
$14.50 per week — In cities between 250,000 and 500,000 popu- 
lation or in the immediate trade area of such a city. 
$14.00 per week— In cities between 2,500 and under 250,000 
population or in the immediate trade area of such a city. 
$12.00 per week— In places not covered by the preceding pro- 
visions of this Section 2. 
(a) Office girls and boys may be paid at a rate of not less than 
80% of the above minimum ; provided that the total number of such 
office girls and boys in the employ of any member of the Industry 
shall not exceed 5% of the total number of employees covered by 
this Section 2 in the employ of such member. Each member of the 
Industry, however, may have at least one such employee. 



50 

Section 3. A person whose earning capacity is limited because 
of age, physical or mental handicap may be employed on light work 
at a wage below the minimum established by this Code if a member 
of the Industry 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 U. S. Department of Labor in issuing certificates 
to such persons. Each member of the Industry shall file monthly 
with the Code Authority a list of all such persons employed b}' him, 
showing the wages paid to, and the maximum hours of Avork for 
such emplo3'ees. 

Section 4. Female employees performing substantial!}^ the same 
work as male employees shall receive the same rates of pay as male 
emploj^ees. 

Section 5. Article IV-B establishes minimum rates of pay which 
shall apply whether an employee is actually compensated on a time 
rate, piece work, or other basis. 

Section 6. Equitable adjustments in all pay schedules of em- 
ployees above the minimum shall be made within thirty (30) days 
after the approval of this Code, by any members of the Industry 
who have not heretofore made such adjustments and the first monthly 
reports of wages required to be filed under this Code, shall contain 
all wage adjustments made since May 1, 1933. 

Article V 

A. COMPLAINTS AND APPEAL 

Section 1. Any interested party shall have the right of complaint 
to the Code Authority and prompt hearing and decision thereon, 
under such fair procedure as it shall prescribe, in respect to any rule, 
regulation, order, or finding made by the Code Authority. 

Section 2. Any interested party shall have the right of appeal 
10 the Administrator under such procedure as he shall prescribe in 
respect to any decision, rule, regulation, order, finding, or omission 
to act by the Code Authority. 

Article VI 
A. costs and prices 

Section 1. The Code Authority shall cause to be fonnulated 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 of the Industry shall determine 
and/or estimate costs in accordance with the principles of such 
methods. 

Section 2. No member of the Industry shall sell or exchange any 
products of his manufacture at a price lower than his own cost 
determined in accordance with the above accounting system and 



51 

methods of cost finding, except as herein provided, or to meet the 
competition of a lower cost competitor. 

(a) Obsolete and discontinued products may be disposed of by 
any member of the Industry in such manner and on such terms and 
conditions as said member may desire if said member files with the 
Code Authority notice of his intention to sell such products together 
with the terms and conditions of the proposed sale, not less than two 
weeks prior to said sale, and if the Code Authority does not within 
such two week period disapprove such proposed sale. 

(b) In the event that the price of crude rubber on the New York 
market should drop to such a point that members of the Industry 
become unable to sell reclaimed rubber except at a price below their 
own individual costs, the Administrator, upon application of the 
Code Authority with the approval of 75% of the members of the 
Code, shall temporarily stay the operation of Section 2 of this 
Article. 

Section 3. Within thirty days after the approval of this Code, 
every member of the Industry shall file with the Association com- 
plete schedules of his prices, terms, discounts, and conditions of 
sale for any products of the Industry. Thereafter, no member of 
the Industry shall sell any product at prices lower or on terms more 
favorable than the prices and terms filed as aforesaid, unless he shall 
first file revised schedules of his prices, terms, discounts and condi- 
tions of sale, which changes shall become effective ten days after 
their filing. 

(a) The Association shall, promptly after receipt of such revised 
schedules and terms, notify all members of the Industry affected. 
Such members may thereupon file with the Association revisions of 
their schedules and terms which, if filed prior to the date when the 
revised lists and terms first filed shall go into effect, may become 
effective on said date. 

(b) All schedules filed with the Association shall be open to in- 
spection at all reasonable times bj^ any member of the Industry, or 
by any customer or prospective customer.^ 

Article VII 

A. TRADE PRACTICES 

Section 1. No member of the Industry shall sell or offer for sale 
any reclaimed rubber, except under a firm sales contract which shall 
specify a definite quantity to be delivered over a specified period of 
time. Nor shall any member guarantee any customer against price 
declines. 

Section 2. After thirty days from the date of approval of this 
Code, no member of the Industry shall sell or ship any products of 
the Industry on consignment, except imder circumstances to be 
denned by tlie Code Authority. 

Section 3. All shipments shall be made f.o.b. member's factory 
or warehouse. Freight may be allowed to customer's receiving point 
but such freight shall not be prepaid. 

1 See paragraph 2 of order approving this Code. 



52 

Section 4. The Code Authority shall make studies for the estab- 
lishment of classifications and adequate descriptions of the products 
of the Industry in order to minimize any unfair practices which 
may exist as to the specifications and values offered or sold in the 
various grades. The Code Authority may appoint a Technical Com- 
mittee to assist in the formulation of such classifications and descrip- 
tions, which shall be submitted to the members of the Code for their 
approval. After approval by members of the Code and the Code 
Authority and upon approval by the Administrator, after such no- 
tice and hearings as he may deem necessary, such classifications and 
descriptions shall become the standards for the Industry. There- 
after, no member of the Industry shall sell reclaimed rubber of 
higher quality than any defined in the established classifications 
except at a proportionately higher price than his price currently on 
file for said established classifications and descriptions, which pro- 
portionately higher price shall truly reflect the increased cost of 
such higher quality product. 

Sectiox 5. No member of the Industry in purchasing any com- 
modity from a customer shall pay a price in excess of the price 
currently being charged by said customer to purchasers of the same 
class as that member, to influence the sale of reclaimed rubber. 

Section 6. No member of the Industry shall use advertising 
(whether printed, radio, display, or of any other nature) or other 
representation which is inaccurate in any material particular or 
which refers inaccurately to competitors or their commodities, prices, 
values, credit terms, policies, or services. No member shall, in any 
way, misrepresent any commodity (including its use, trade mark, 
grade, quality, quantity, origin, size, specifications) or credit terms, 
values, policies, services, or the nature or forni of the business 
conducted. 

Section 7. No member of the Industry shall use advertising or 
selling metliods or credit terms Avith the purpose or effect of deceiv- 
ing or misleading a customer or prosj^ective customer, in any mate- 
rial particular. 

Section 8. 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. 

Section 9. No member of the Industry shall secretly offer or make 
any payment or allowance of a rebate, refund, commission, credit, 
unearned discount or excess allowance, whether in the form of money 
or otherAvise ; nor shall a member secretly offer or extend to any 
customer any special service or privilege not extended to all such 
member's customers of the same class. 

Section 10. No member of the Industry shall give, permit to be 
given, or directly or indirectly offer to give an3'thing of value for the 
purpose of influencing or rewarding the action of any employee, agent 
or representative of another, in relation to the business of the em- 
ployer of such employee, or the principal of such agent or the 
represented party, without the knowledge of such employer, principal 
or party. 

Section 11. No member of the Industry shall, directly or indi- 
rectly, give or permit to be given, or offer to give, money or any- 



53 

thing of value to any customer or prospective customer, or to any- 
one else, upon the instigation and for the benefit of any customer 
or prospective customer, to induce sucli customer or prospective cus- 
tomer to jDurchase any products of the Industry from such members. 
The provisions of Sections 10 and 11 of this Article shall not be con- 
strued to prohibit free and general distribution of articles commonly 
used for advertising except so far as such articles are actually used 
for commercial bribery as hereinabove defined. 

Section 12. Xo member of the Industry shall secure confidential 
information concerning the business of a competitor by a false or 
misleading statement or representation, by a false impersonation, 
of one in authority, by bribery, or by any other unfair method. 

Section 13. 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 with or obstruct the performance of such contractual duties 
or services. 

Section 14. No member of the Industry shall brand or mark or 
pack any commodity in any manner w'ith the purpose or effect of 
deceiving or misleading purchasers in any material particular with 
respect to the brand, grade, quality, quantity, origin, size, or spec- 
ification of such commodity. 

Section 15. No member of the Industry shall withhold from or 
insert into any invoice any statement which would make the in- 
voice a false record, wholly or in part, of the transaction to. which 
it refers, or make any arrangement which contemplates payment 
or settlement contrary to the face of the invoice. 

Section 16. No member of the Industry shall imitate the trade 
mark of a competing member. 

Article VIII 

A. MONOPOLIES 

Section 1. No provision 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 IX 

A. EXPORTS 

Section 1. The provisions of this Code now or hereafter adopted 
with regard to prices, discounts, deductions, allowances, extras, com- 
missions, or methods and/or terms of sale shall not apply to direct 
export sales, or sale to domestic agents for export only. 

Article X 

A. RE^^sIONS and modifications 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of Subsection (b) of Section 10 of the Act, from time to 



54 

time to cancel or modify any order, approval, license, rule, or regu- 
lation 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 anj^ conditions imposed by him upon his approval 
thereof, as changes in circumstances or experience may indicate. 

Section 2. Such of the provisions of this Code as are not required 
b}^ the Act to be included herein may, with the approval of the 
President or Administrator, be modified or eliminated as changed 
circumstances or experiences may indicate. It is intended that addi- 
tions to this Code applicable to all members of the Industry may be 
submitted to the Administrator for approval, as provided in Article 
XI of the Code. 

Section 3. If any member of the Industry is likewise engaged in 
part in any other industry or trade, this Code shall apply only to 
such of the activities of said member as are comprehended within 
the Reclaimed Rubber Manufacturing Industry. 

Article XI 

A. ADDITIONS, ALTERATIONS, AND AMENDMENTS 

Section 1. The Code Authority, with the approval of the majority 
of the members of the Code in number and in volume of sales (ex- 
cluding any sales made to any subsidiary or affiliated companies) 
may recommend to the Administrator any addition, alteration or 
modification of this Code. Upon approval by the Administrator, 
after such notice and hearing as he may prescribe, the same shall be 
binding as a part of this Code. 

Article XII 

A, effective DATE AND TERMINATION 

Section 1. This Code shall become effective on the second Monday 
after it shall have been approved by the President of the United 
States. It shall continue in effect until June 16, 1935, or until such 
time prior thereto when the President shall, by proclamation or the 
Congress shall by joint resolution, declare that the emergency recog- 
nized by Section 1 of the Act has ended. 



Approved Code No. 377. 
Registry No. 1632-24. 



o 



Approved Code No. 378 
CODE OF FAIR COMPETITION 

FOR THE 

PEANUT BUTTER INDUSTRY 

As Approved on April 4, 1934 



ORDER 



Approving Code of Fair Competition for the Peanut Butter 

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 Peanut Butter Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 
directed to the President: 

^ NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate by reference said an- 
nexed report and do find that said Code coniplie,s 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 thereof shall not become effective, and they are 
hereby stayed, for a period of ten (10) days in order to afford con- 
sideration of the objections of any interested parties, and that at the 
expiration of such period said Code shall become effective, unless I 
shall by my further order otherwise determine or extend such stay: 
and provided, further, that the provisions of sub-section (c) of Sec- 
tion 1, Article VII, 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 stud}'^ of open price associations now being 
conducted by the National Recovery Aclministration. 

Hugh S. Johnson, 
Adnmiistrator for Industrial Recovery, 

Approval recommended : 
Arjiin W. Riley, 

Division Administrator. 

Washington, D.C, 

April 4, 193J^. 

(55) 



REPORT TO TITE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the hearing of the Code of Fair Competi- 
tion for the Peanut Butter Industry. 

This lioaring was hehl at the Lafiiyette Hotel, Washington, D.C., 
on Monday, December 18, 1938, pursuant to Notice of Hearing signed 
by the Secretary of Agriculture by virtue of Executive Order of June 
2G, 1933. By Executive Order of January 8, 1934, the jurisdiction 
over this Code was re-transferred to the Administrator for Industrial 
Recovery. Certain changes have been made in the Code to conform 
to N.R.A. policy, but these changes are not in conflict with the tran- 
script of the record of the public hearing. 

GENERAL 

The Code for the Peanut Butter Industry will mean, it is esti- 
mated, an increase in emjdoyment of from eighteen to nineteen per 
(•cut (18-19^/^,) and in wages about twenty-four and one-half per cent 
(241/^9^), and in hourly wage rates from thirteen to twenty-nine per 
cent (13-29%). Average weekly hours in 1933 before P. R. A. were 
reported as averaging forty -live and one-half (451/0) in the North, 
about fifty (50) in tiie South, and forty -seven (47) in the country at 
large: a reduction to forty (40) hours as provided for in this Code 
will mean a relative increase of eighteen to nineteen per cent 
(18-19%) in employment from that prevailing early in 1933. In 
actual practice this increase will not affect all grou})s of employees 
equally, although approximately two-thirds of all the workers in the 
Industry should benefit by the shorter hours. Nearly one-third of 
the workers in the Industry have been receiving wages at- rates from 
twenty-five to thirty (25-30) cents an hour, the average hourly w^age 
rate of all workers being thirty-one and one-half (3D/^) cents. 
About fifty-eight (58%) per cent of all workers have been receiving 
less than tiie mininnun rates provided for in this Code. Of the male 
workers in the North about fifteen (15%) per cent have been receiv- 
ing less than the pro})osed mininnun; of the female workers in the 
North, about seventy-one (71%) {)er cent; of the male workers in the 
South, about fifty-eight (58%) j)er cent; and of the female wMjrkers 
in the South, about sixty (00% ) per cent. The percentages of in- 
crease which w(mld be brought about by the four minima rates in 
this Code bear a reasonable relation to one another. Due to low 
pre-code wage rates, workers in the South, aggregating about twenty- 
two (22%) per cent of all w^orkers in the Industry, will receive under 
this Code a relatively greater increase in hourly wage rates than the 
seventy-eight (78^, ) per cent of workers in the North. 

The volume of peamit butter manufactured increased steadily to a 
peak of 107,000,000 pounds in 1932, but dropped to 85,500,000 pounds 

(50) 



57 

in 1933. The value of the output, which was above $15,000,000 in 
1929 and 1930, was only about $8,500,000. The normal demand is now 
probably 100,000,000 pounds produced by some one-hundred and 
seventy (170) manufacturers. 

The Industry estimates employment at about 5000 employees, in- 
cluding office workers and route salesmen. Later estimates, however, 
reduce this figure to between 2000 and 2500 employees. 

The National Peanut Butter Institute, Incorporated, is a trade 
association, truly representative of the Industry, and imposes no 
inequitable restrictions on membership. 

HOURS AND WAGES 

The Code for the Peanut Butter Industry provides for a maximum 
work week of forty (40) hours, with a limitation of nine (9) hours 
per day, and six (G) days in any seven (7) day period. There are 
the usual exemptions, complete or partial in the case of executive, 
managerial, or technical employees who regularly receive not less 
than thirty-five ($35.00) dollars per week in cities of 100,000 popu- 
lation or over, or thirty ($30.00) dollars per week in cities and towns 
of less than 100,000 population; outside salesmen who regularly re- 
ceive not loss than thirty-five ($35.00) dollars per week in cities of 
over 100,000 population and thirty ($30.00) dollars per week else- 
where, averaged over a four (4) week period; route salesmen who 
regularly receive not less than twenty-five ($25.00) dollars per week 
in cities of over 100,000 population and twenty ($20.00) dollars per 
week elsewhere, averaged over a four week period. Watchmen may 
work fifty-six (56) hours per week. Chauffeurs and deliverymen 
may work foily-eight (48) hours per week. Firemen and engineers 
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 an additional six (6) hours in any one week 
except in cases of emergency maintenance and 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(/i) cents an hour for 
men in the North and at thirty-five (35(^) cents an hour for 
men in the South. The same differential in wage rates as between 
men and women in both the North and South could not be justified 
by available data, therefore a seven and one-half (7i/2^) cent dif- 
ferential is provided for women in the North with a ten (100) 
cent differential in the South. Watchmen are to be paid not less 
than at the rate of eighteen ($18.00) dollars jier week. Office 
employees are under a minimum by population, starting at sixteen 
($16.00) dollars per week for cities of over 500,000 population. 
With the usual exceptions, compensation for all time worked on 
Sundays and holidays must be at one and one-third times the 
normal rate. 

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 



58 

removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanations and supervision, by 
eliminating unfair comjjetitive practice, 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 a trade association trul}^ representative of the aforesaid 
Industry; and that said association imposes no inecpiitable 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 v/ill not operate to discriminate against them. 

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

For these reasons the Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
Aprh. 4, 1934. 



CODE OF FAIR COMPETITION FOR THE PEANUT 
BUTTER INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Recovery 
Act, the following provisions of this Code are established as a Code 
of Fair Competition for the Peanut Butter Industry, and shall be 
the standards of fair competition for such Industry and shall be 
binding upon every member thereof. 

Article II — Definitioxs 

Section 1. As used in this Code : 

(a) The terms "President", "Act" and "Administrator" mean 
respectively the President of the United States, Title I of the Na- 
tional Industrial Recovery Act, and the Administrator for Industrial 
Recovery. 

(b) I'he term " Peanut Butter Industr}^ " and the term " Indus- 
try " mean the manufacture and sale of products of the industry by 
the manufacturer thereof and/or the manufacture of products of the 
industry for use by the manufacturer in other products for resale. 

(c) The term " products of the industry " means Peanut Butter 
and/or any other similar product, the basic ingredient of which is 
crushed or ground peanuts to which is added salt and/or other 
ingredients. 

(d) The term "member of the industry" includes, but without 
limitation, any individual, partnership, association, corporation, or 
other form of enterprise engaged in the Peanut 13 utter Industry, 
either as an employer or on his or its own behalf. 

(e) The term " employee " means any and all persons engaged in 
the industry, however compensated, except a member of the industry. 

(f) The term "employer" means any person by wdiom any such 
employee is compensated or employed. 

(g) The term " watchman " means any employee whose principal 
function is watching and guarding the premises and property of 
any establishment of a member of the industry. 

(h) The term " outside salesman " means any salesman who spends 
at least sixty (60) per cent of his working hours outside of the 
establishment or any branch thereof of his employer, and who does 
not regularly deliver merchandise. 

(i) The term "route salesman" means any salesman who reg- 
ularly delivers merchandise that he sells. 

(j) The term "trade buyer" means any commercial buyer as 
distinguished from an ultimate consumer. 

(k) The term " Code Authority " means the Code Authority pro- 
vided for in Article VI of this Code. 

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

(59) 



60 

Article III — Hours 

Section 1. No empl()3^ee shall be permitted to work in excess of 
forty (40) hours in any week or nine (9) hours in any day, nor 
more than six (6) days in any seven (7) day period, with the fol- 
lowing exceptions : 

(a) The provisions of this Article shall not apply to employees 
engaged in a managerial, executive, or technical capacity, who reg- 
ularly receive not less than thirty-five ($35.00) per week in cities 
of 100,000 population, or over, or thirty ($30.00) dollars per week 
in cities and towns of less than 100,000 population ; nor to outside 
salesmen who regularly receive not less than thirty-five ($35.00) 
dollars per week in cities of 100,000 population, or over, or thirty 
($30.00) dollars per week in cities and towns of less than 100,000 
population, averaged over a four (4) week period. 

(b) The provisions of this Article shall not apply to route sales- 
men provided that they regularly receive not less than twenty-five 
($25.00) dollars per week in cities of 100,000 population, or over, 
or twenty ($20.00) dollars per week in cities and towns of less than 
100,000 population, averaged over a four (4) week period. It shall 
be the duty of employers to lay out routes for such salesmen which 
can be covered under normal conditions in eight (8) hours per day. 

(c) Watchmen shall not work in excess of fift^ -six (66) hours per 
week. 

(d) Firemen and engineers shall not work in excess of forty-four 
(44) hours per week or nine (9) hours in any one day. 

(e) Chauffeurs and deliverymen shall not work in excess of forty- 
eight (48) hours per week. 

Section 2. In cases of unforseen peak production, inventory peri- 
ods, financial closing periods, emergency repair and emergency main- 
tenance work, and other unusual conditions beyond the control of the 
employer, employees may be permitted to work in excess of the nor- 
mal number of working hours per day or per week provided in this 
Code for the class of work performed by such employees. Such over- 
time shall not exceed six (6) hours in any one week except in cases of 
emergency repair work and emergency maintenance work involving 
break-downs or protection of life and property, and shall be compen- 
sated by at least time and one-third. Office workers regularly re- 
ceiving not less than thirty-five ($35,00) dollars per week may be 
permitted to work the additional time provided for by this Section 
without payment for such overtime. When required by the Code 
Authority or the Administrator, reports shall be made to the Code 
Authority or Administrator, as the case may be, stating the number 
of hours worked overtime, in accordance with the provisions of this 
Section. 

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 per week in 
cities of over 500,000 population or in the immediate trade area 
thereof; $15.00 per week in cities between 250,000 and 500.CK)0 popu- 
lation or in the immediate trade area thereof; $14.00 per week in 
cities and towns of less than 250,000 population ; except that office 



61 

boys and messengers may be paid at not less than at a rate of two 
($2.00) dollars below the above minima, provided, however, that 
where more than one employee is classified and compensated as an 
office boy or messenger, not more than ten (10) per cent of the total 
nmnber of office employees shall be so classified in each establishment. 

Section 2, No male employee other than those covered in Section 1 
and Section 3 of this Article shall be paid at a rate of less than forty 
(40^) cents per honr, and no female employee other than those cov- 
ered in Section 1 of this Article shall be paid at a rate of less than 
thirty -two and one half (3214^) cents per hour; except that male 
employees may be paid at not less than at the rate of thirty-five (35^) 
cents per hour, and female employees may be paid at not less than at 
the rate of twenty -five (25^) cents per hour in the following States: 
Virginia, North Carolina, South Carolina, Tennessee, Alabama, 
Georgia, Florida, Mississippi, Louisiana, Texas, Arkansas, Okla- 
homa, and Kentucky. 

Section 3. No watchman shall be paid at a rate of less than 
eighteen ($18.00) dollars for a fifty-six (56) hour week. 

Section 4. This Code establishes a minimum rate of pay which 
shall apply, irrespective of whether an emploj^ee is actually com- 
pensated on a time rate, piece-work, or other basis. 

Section 5. Wages of employees shall be exempt from any fines; 
and from charges or deductions except charges or deductions for 
employees' voluntary contributions for pension, insurance or benefit 
funds; and no employer shall withhold wages except upon service 
of legal process or other papers lawfully requiring such withholding. 
Deductions for other purposes not heretofore stated may be made 
only when so authorized by the employee in writing. 

Section 6. Female employees performing substantially the same 
work as male employees shall be paid at the same rate of pay as 
male employees ; provided that, when male employees perform work 
customarily done by female employees, only during hours when 
female labor is prohibited by applicable law, it shall not be required 
that female employees doing such work at other times be paid at the 
same rate as such male employees. 

Section 7. Time and one-third shall be paid for all time worked 
(except by watchmen and outside salesmen and employees engaged 
in a managerial, executive or technical capacity as set forth in para- 
graphs (a) and (c) of Section 1 of Article III) on Sundays and the 
following holidays : Christmas Day, Thanksgiving Day, Labor Day, 
July Fourth, New Year's Day, and such other holidays as may be 
proclaimed by the President of the United States. 

Section 8. A person whose earning capacity is limited because of 
age, physical, mental handicap, or other infirmity, ma}'^ 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. 

51237° 482-25 34 2 



62 

Section 9. (a) In the event the maximum weekly working hours 
of any emploj^ce shall, under the provisions of this Code, be reduced 
by not more than sixteen and two-thirds (16%%) per cent under the 
average of the weekly working hours worked by said employee dur- 
ing the period from January 1, 1933, to May 1, 1933, the wages 
of said employee shall not be reduced below the average weekly wage 
paid said employee during said period from January 1, 1933, to May 
1, 1933. 

(b) In the event the maximum weekly working hours of any em- 
ployee shall, under the provisions of this Code, be reduced by more 
than sixteen and two-thirds (16%%) per cent under the average 
weekly working hours worked by said employee during the period 
from January 1, 1933, to May 1, 1933, the hourly wage rate of said 
employee shall be equitably readjusted upward, provided that in 
every such case the weekly wages of said employee shall be increased 
by at least twenty (20) per cent. 

(c) In no case shall hourly wage rates be reduced. 

Abticle V — General Labor Provisions 

Section 1. No person mider sixteen (16) years of age shall be em- 
ployed in the Industry. No person under eighteen (18) years of 
age shall be employed at operations or occupations which are haz- 
ardous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator within ninety (90) days after the 
effective date of this Code a list of such operations 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 empow- 
ered to issue employment or age certificates or permits showing that 
the employee is of the required age. 

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

Section 3. No employee and no one seeking employment shall be 
required as a condition of employment to join any company miion 
or to refrain from joining, organizing, or assisting a labor organ- 
ization 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 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. 

Section 6. No provision in this Code shall supersede any 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. 



63 

Section 7. 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 dav whether 
employed by one or more employers. 

Section 8. No employer shall reclassify employees, or reclassify 
the duties or occupations performed by them, or change the method 
of compensation of employees, or engage in any subterfuge which 
tends to or will defeat the purpose or provisions of the Act or of 
this Code. 

Section 9. All employers shall post complete copies of the portions 
of this Code relating to wages, hours, and general labor conditions in 
conspicuous places accessible to employees. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

part a organization and constitution 

Section 1. There shall forthwith be constituted a Code Authority 
for the Peanut Butter Industry consisting of seven (7) persons to be 
selected in the following manner: 

(a) The National Peanut Butt«r Institute, Incorporated, as pro- 
ponents of this Code, are hereby designated as the agency to conduct 
an election of the members of the Code Authority within fifteen (15) 
days after the effective date of this Code. Members so elected are 
to hold office for one (1) year or until their successors are elected 
as hereinafter provided. Vacancies in membership of the Code Au- 
thority elected pursuant to this sub-section (a) shall be filled for 
unexpired terms by the remaining members of the Code Authority. 

(b) Each member of the Industry shall be entitled to one vote for 
each of the seven (7) members of the Code Authority to be elected, 
and at each election the voting may be by person, by proxy, or by 
letter, and such voting may be cumulative. The provisions of this 
sub-section shall apply to the election of the Code Authority pro- 
vided for in sub-section (a) of this Section, and must be included in 
the plan submitted by the Code Authority to the Administrator 
pursuant to the provisions of sub-section (c) of this Section. 

(c) Within ninety (90) days after the effective date of this Code, 
the Code Authority shall submit for approval of the Administrator, 
a plan for the election of the Code Authority for all elections follow- 
ing the election provided for in sub-section (a) of this Section, and 
such plan shall include a method for the filling of all vacancies in 
the Code Authority. Such method of election when approved by the 
Administrator shall be folloAved in all elections of the Code Author- 
ity, unless modified under the provisions of Section 4 of this Article. 
If the Administrator should so require, an election shall be called 
and held in accordance with such method of election before the expi- 
ration of the term of office of the Code Authority elected under the 
provisions of sub-section (a) of this Section. 

Section 2. In addition to membership of the Code Authority as 
provided in Section 1 of this Article, there may be one (1) to three 
(3) members of the Code Authority, without vote, and without ex- 



64 

pense to the industry, appointed by the Administrator to serve for 
such terms as he may designate. Such members, together with the 
Administrator, shall be given notice of and shall be permitted to sit 
at all meetings of the Code Authority. 

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 asso- 
ciation, 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 neces- 
sary to effectuate the purposes of the Act. 

Sectiox 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. 

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 tliis Code and sustaining their reasonable share of the ex- 
penses 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 
of the products of the industry 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 Codo Authority be liable in any manner to 
anyone for any act of any other member, officer, agent or employee 
of the Code Authority. Nor shall any member of the Code Author- 
ity, exercising reasonable diligence in the conduct of his duties here- 
under, be liable to anyone for any action or omission to act under this 
Code, except for his own wilful misfeasance or non-feasance. 

PART B POWERS AND DUTIES 

Section 1. 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 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 the industry of such in- 
formation and reports as the Administrator may deem necessary for 
the purposes recited in Section 3 (a) of the Act, which information 



65 

and reports shall be submitted by members to such administrative 
and/or government agencies as the Administrator may designate; 
provided that nothing in this Code shall relieve any member of the 
industry of any existing obligations to furnish reports to any gov- 
ernment agency. No individual reports shall be disclosed to any 
other member of the industry or any other party except to such gov- 
ernmental agencies as may be directed by the Administrator. 

(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 Adminis- 
trator may establish, any alleged specific violation or violations of 
any provision or provisions of this Code and, if it deems advisable, 
to require a report in such form as the Code Authority shall pre- 
scribe, from any member or members of the industry against whom 
such complaint shall have been made, setting forth the facts pertain- 
ing 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 the 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 necessary 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 qualifi- 
cations, in order to determine whether the alleged violation has oc- 
curred. After making such examination, said accountant shall make 
a report of his findings to the Administrator, who shall keep the same 
confidential, and who 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 in- 
vestigations, 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 report its findings of fact and recommen- 
dations to the Administrator who may take such action under appli- 
cable law as he deems necessary. 

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

(h) 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. 

(i) To appoint a trade practice committee who shall meet and 
confer with like committees to be appointed by code autliorities 
of codes of related trades and/or industries, wdth a view to formu- 
lating fair trade practices to govern the relationship between pro- 
duction and distribution employers of such trades and/or industries; 
to the end that such fair trade practices may be proposed to the Ad- 



66 

ministratar as amendments to this Code, and to such other codes 
or related trades and/or industries, 

(j) To recommend to the Administrator measures for industrial 
planning, including stabilization of employment. 

(k) To elect a representative to serve on any conference or ad- 
visory committee which may be established by the Administrator 
for the entire grocery and food manufacturing industry; and to 
consider recommendations formulated by such committee and ap- 
proved by the Administrator, for the modification of this Code. 

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

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

(n) To formulate subject to 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 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. 

(o) To exercise all the powers and functions granted to it in 
Section 7 of Article VII. 

(p) To initiate, if necessary, and recommend modifications or 
amendments of this Code, which upon approval by the Adminis- 
trator, after such notice and hearing as he may require, shall become 
a part of this Code. 

Section 2. 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. 

Article VII — Prices and Discounts 

Section 1. Open Prices. — (a) Each member of the industry shall 
file with the Code Authority, at its office, within ten (10) days after 
the Code Authority shall have been constituted, a complete schedule 
of all of such members' prices for all products of the industry that 
he sells, together with all discounts and full terms and conditions 
of sale of any kind based upon such prices. The Code Authority 
shall make such schedules available to all trade buyers as well as 
other members of the industry, and in making them so available, shall 
make no interpretation or comment thereon. 

(b) 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. 



67 

(c) All revised schedules filed as provided for in sub-section (b) 
of this Section, shall not become effective until five (5) days after 
the date of filing.^ 

(d) 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, 
discounts, full terms and conditions of sale, then on file as effective, 
by such member of the industry with the Code Authority. 

(e) Every member of the industry shall publish or make available 
for the equal information of all trade buyers and members of the 
industry located in the same competitive markets, his schedules of 
prices, discounts and full terms and conditions of sale. 

Section 2. Unearned Service Payments. — Xo member of the indus- 
tr}^ shall pay a trade buyer for a special advertising or other dis- 
tribution service by such buyer: 

(a) Except in pursuance of a written contract made in good faith 
and explicitly defining the service to be rendered and the payment 
for it; and 

(b) Unless such service is rendered and such payment is reasonable 
and not excessive in amount; and 

(c) Unless such contract is separate and distinct from any sales 
contract and such payment is separate and distinct from any sales 
price and is not designed or used to reduce a sales price ; and 

(d) Unless such payment is equally available to all trade buyers 
in the same competitive market; and 

(e) Unless a copy of each such contract is retained on file for a 
period of one year. The Administrator shall be empowered to re- 
quire a member of the industry to report such contracts made by 
him and/or to produce a copy thereof for inspection. 

Section 3. Price Disci'ijnination. — No member of the industry 
shall discriminate in price among trade buyers. The term " dis 
criminate in price " as used in this Section means directly or indirectly 
charging a different price to trade buyers in the same quantity and/or 
distribution class who are located in the same competitive market 
or any action taken by any member of the industry pursuant to the 
provisions of sub-section (b) Section 1 of this Article which tends 
to or results in such discrimination in price. 

Section 4. Cash Discounts. — No member of the industry shall 
allow a cash discount which is not duly earned in accordance with 
the terms of cash discount as filed under the provisions in Section 1 
of this Article. 

Section 5. Qiutntity Price. — No member of the industry shall of- 
fer or make a quantity price unless it is a genuine quantity price, 
and unless it is equally available to all trade buyers in the same 
quantity class. The term " genuine quantity price " as used in this 
Section, means a price differential which is based upon and reason- 
ably measured by a substantial difference in the quantity sold and 
delivered. 

Section 6. Selling Belom Cost. — No member of the industry shall 
file with the Code Authority (as required in Section 1, of this Ar- 
ticle), or sell at, a price which is below his individual cost, except 

^ See paragraph 2 of order approving this Code. 



68 

to meet the filed price of any lower cost competitor in the same 
competitive market, provided such latter price is not in violation of 
this Code. Cost for the purposes of this Section shall be determined 
by the uniform method of accounting, provided for in Article VI, 
Part B, Section 1, sub-section (n). 

Section 7. SeUing Below Reasonahle Cost During " Emer- 
gency ". — 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 main- 
tenance 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 hear- 
ing as the Administrator may require. The Administrator may ap- 
prove, 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 })roducts 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 Author- 
ity, upon its own initiative or upon the request of any interested 
party, shall cause the determination to be reviewed. 

Article VIII — Unfair Trade Practices 

Section 1. The following practices constitute unfair methods of 
competition and are prohibited: 

(a) Mishranding and Inaccurate Lahelling. — To sell or other- 
wise introduce into commerce any product of the industr)^ that is 
misbranded or inaccurately labelled. Any product of the industry 
is hereby declared to be misbranded: (1) if such product is labelled 
" Peanut Butter '' and contains any ingredients other than sound, 
clean, roasted peanuts that are crushed or ground, with or without 
salt; or (2) if there is not clearly and legibly stated on the label of 
every product of the industry, the grade or grades of peanuts used 
in every such product; or (3) if, in the case of all products of the 
industry, other than " Peanut Butter ", there is not stated on the 
label of ev^ery such product the name or names of all ingredients 
used therein; or (4) if any product of the industry is marked or 
branded in any manner Avhich is intended to or does deceive or mis- 
lead purchasers with respect to the brand, grade, quality, quantity, 
substance or material content or preparation of such products of 
the industry. 

Provided, however, that members of the industry who, on the ef- 
fective date of this Code, have on hand labels, which labels, if 
used, would not be in violation of any existing law, but would result 
in misbranding under the provisions of this Section, may continue to 
use such labels on products of the industry until the supply on hand 
on said date is exhausted, but in no event shall such use be continued 
for more than ninety (90) days after the effective date of this Code. 

(b) False Advertising and Contahiers. — To falsely or deceptively 
advertise any products of the industry; or to use a deceptive con- 
tainer ; or to give short weight or short measure or short count. 



69 

(c) False Billing. — To withhold from, or to insert in any invoice, 
statements that make it a false record, wholly or in part, of the trans- 
action represented on the face thereof. 

(d) False Price Statements. — To quote a fictitious price; or to in- 
voice a false price; or to make any price statement or price repre- 
sentation which is false or fraudulent. 

(e) Compulsory Purchase. — To compel the purchase of one prod- 
uct in order to purchase or obtain another. 

(f ) Free Samples. — To give free samples with shipments of prod- 
ucts of the industry; provided, however, that this Section shall not 
prevent the distribution direct to consumers of free samples plainly 
labeled as such. 

(g) Free Deals. — To give free deals with shipments of products 
of the industry. (The term " free deal " as used in this Section shall 
mean the giving of free merchandise which would have the effect of 
reducing the net cost per unit to trade buyers below the price filed 
under the provisions of Section 1 of Article VII). 

(h) Prizes, Premiv/nis., and Gifts. — To offer or to give prizes, pre- 
miums, gifts, or an3i;hing of value in connection with, or as an in- 
ducement to, the sale of products of the industr3^ except as otherwise 
.specifically allowed by this Code. 

(i) Commercial Bribery. — 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 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. 

(j) Selling on Consignment. — To ship goods on consignment 
except under circumstances to be defined by the Code Authority, 
subject to the approval of the Administrator, where such circum- 
stances of the industry require the practice. 

(k) Guarantee against Price Declines. — To guarantee a trade 
buyer against a decline in the market price on such trade buyer's 
floor stocks. 

(1) Diversion of Sales Compensation. — To offer to sell or to sell 
any product of the industry knowing that the price thereof to the 
trade buyer is below the applicable price as stated in the effective 
schedules filed in accordance with the provisions of Section 1 of 
Article VII, whether such lower price to the trade buyer is effected 
through a diversion of compensation paid by the member of the 
industry to an employee or otherwise. 

(m) Price Concessions. — To make any secret rebates, secret allow- 
ances, or secret concessions of any kind, including rebates by way of 
special services, discounts, absorption of transportation costs, or 
advertising allowances; and any rebates, allowances, (except such 
allowances as are made in accordance with the provisions of Section 
2, of Article VII) and concessions of any kind not set forth in the 
schedule of prices and discounts filed with the Code Authority. 



70 

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

Article X — Monopolies, Etc. 

No provision of this Code shall be so applied as to 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 more difficult of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price 
increases except such as may be required to meet individual cost 
should be delayed, but when made such increases should, so far as 
possible, be limited to actual additional increases in the seller's costs. 

Article XII — Effective Date 

This Code shall become effective on the date specified in the Order 
of Approval. 



Approved Code No. 378. 
Registry No. 136-02. 



o 



Approved Code No, 379 

CODE OF FAIR COMPETITION 

FOR THE 

BOTTLING MACHINERY AND EQUIPMENT 
MANUFACTURING INDUSTRY 

As Approved on April 4, 1934 



ORDER 



Approving Code of Fair Competition for the Bottling Machinery 
AND Equipment Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June IG, 1933, for approval of a Code of 
Fair Competition for the Bottling Machinery and Equipment Manu- 
facturing Industry, and hearings having been duly held thereon and 
the annexed report on said Code containing findings with respect 
thereto, having been made and directed to the President : 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
A. R. Glancy, 
Division Administrator. 

Washington, D.C, 

April 4, 193J^. 

61236° 482-26 34 (71) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sm: This is a report on the Code of Fair Competition for the 
Bottling Machinery and Equipment Manufacturing Industry, as 
revised after a Public Hearing held in Washington on the 20th day 
of December, 1933, 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 with the exception of those employees 
engaged in emergency maintenance or emergency repair work. 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 an hour for males and females are 
established excej)t office and clerical employees who may be paid at 
a rate $15.00 per week, and office boys and girls at a rat-e of $12.00 
per week. Female employees performing substantially the same 
work as male employees will receive the same rate of pay. 

ECONOMIC EFFECT OF THE CODE 

Before the adoption of the reduced hourly schedule in 1933, this 
Industry averaged 54 hours per week. Its thirty companies em- 
ployed about 1800 persons. Adoption of the 40 hour week would 
increase employment to 2430 persons or an increase of 34%. 

The invested capital of the Industry is about $15,000,000. Sales 
in 1932 totaled about $3,300,000 but sales for 1934 are estimated at 
$7,000,000 or an increase of h\%. 

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: 

X 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 wh.ich 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, 

(72) 



73 

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 (exce]3t 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 miproving 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 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 by me. 
Respectfully, 

Hugh S. Johnson, 

A dministrator, 
April 4, 1934. 



CODE OF FAIK COMPETITION FOB THE BOTTLING 
MACHINERY AND EQUIPMENT 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 Bottling Machinery and Equipment 
Manufacturing Industry and shall be the standards of Fair Com- 
petition for the Industry and shall be binding on every member 
thereof. 

Article II- — Definitions 

Section 1. The term " The Industry " means and includes the 
business of manufacturing and selling by the manufacturer of 
bottling machineiy and equipment, embracing principally bottle 
washers, bottle fillers, bottle syrupers, bottle crowners, beverage bot- 
tle labellers, beverage carbonators, beverage pasteurizers, beverage 
syrup mixers, and kindred equipment used in the making, bottling, 
crowning, labelling and preparation for sale of all types of drinks 
sold in bottles for beverage purposes, not including wrapping or 
packing for delivery and excepting dairy products. The foregoing 
definition is intended to cover the manufacture and sale of machinery 
and machine parts specifically designed for use in the Beverage 
Industry. 

Section 2. The term " member of the Industry " means any per- 
son engaged in the Industry as herein defined either as an employer 
or on his own behalf. 

Section 3. The term " The Association " means the National Asso- 
ciation of Bottling Machinery Manufacturers, now located at 218 
Munsey Building, Washington, D.C. 

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

Section 5. The term " employee " as used herein includes anyone 
engaged in the industry in any capacity receiving compensation for 
his services, irrespective of the nature or method of payment of 
such compensation. 

Section 6. The term " employer " as used herein includes anyone 
by whom any such employee is compensated or employed. 

Section i. The term '' Code Authority " means the Administra- 
tive body provided for in Article IV of this Code. 

Section 8. The term " beverage " as used herein shall mean and 
include all products prepared for consumption as a beverage (except- 
ing dairy products) and specifically the following: 

(74) 



75 

Beer; alcoholic beverages; wine; soft drinks (carbonated bever- 
ages) and waters; all the aforegoing whether naturally or artificially 
carbonated or non-carbonated. 

Article III — Labor Pro\^sions 

Segtiox 1. Employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective 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, mini- 
mum rates of pay. and other conditions of employment approved or 
prescribed by the President. 

Section 2. No person under 16 years of age shall be employed in 
the industry, nor anyone under 18 years of age at operations or 
occupations hazardous in nature or detrimental to health. The Code 
Authority shall submit to the Administrator for approval 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 
if he shall have on file a certificate or permit duly issued by the 
authority in such State empowered to issue employment or age certi- 
ficates or permits, showing that the employee is of the required age. 

Section 3. Hours. — (a) No employee shall be permitted to work 
in excess of forty (40) hours in any one (1) week or more than 
eight (8) hours in any twenty-four (24) hour period or more than 
six (6) days in any seven (7) day period, except as herein otherwise 
provided. 

(b) During any seasonal or peak period when there is an unusual 
demand on the Industry the aforegoing limitations shall not applj'- 
and any employee may work a maximum of forty-eight (48) hours 
for six (6) weeks in any six (6) months' period; provided, however, 
that one and one half (1%) times the regular hourly rate shall be 
paid for all time worked in excess of forty (40) hours per week or 
eight (8) hours per day. 

(c) On emergency maintenance or emergency repair work involv- 
ing breakdowns or protection of life or property, the hours specified 
above may be exceeded, but in any such case all hours worked in 
excess of forty (40) hours per week and eight (8) hours in any one 
(1) day shall be compensated for at not less than one and one half 
(l^^) times the regular hourly rate. 

(d) In order to get up steam before work starts in the morning 
and to bank fires after shutting down at night, power plant engi- 
neers and firemen shall be permitted in normal periods a tolerance of 
ten (10) percent above the maximum hours allowed during such 
periods, and in peak periods ten (10) percent above the maximum 



76 

hours allowed during such periods; provided, however, that one and 
one half (11/2) times the regidar hourly rate shall be paid for all 
hours and fractions thereof worked in excess of eight (8) hours per 
day or forty (40) hours .per week. 

(e) Truckmen and/or deliveryraen shall be limited to forty-eight 
(48) hours in any one (1) week, provided that time and one half be 
paid for all hours worked over forty (40) hours per week and eight 
(8) hours per day. 

The above regulation of hours and payment of overtime rates shall 
not apply to the following : 

(f ) Tlie maximum number of working hours for office or clerical 
employees in this Industry shall not be in excess of forty (40) hours 
per week, except that in case of emergency office employees on ac- 
counting or similar tasks may be permitted to work not more than 
eight (8) hours overtime in any one (1) month. A normal day shall 
not exceed eight (8) hours. 

(g) Watchmen shall be permitted to work a maximum week of 
fifty-six (56) hours provided that one (1) day's rest shall be granted 
in each seven (7) days; 

(h) Any person engaged in a managerial or executive capacity, 
technical employees acting in a supervisory capacity (not including 
working foremen), or sales service men who receive not less than 
thirty-five ($35.00) dollars per week, and traveling salesmen; pro- 
vided further that the limitation of hours shall apply to employees 
otherwise engaged in an executive or supervisory capacitj^ when such 
employees are engaged in production or mechanical work. 

(i) The Industry recognizes the desirability, and accepts the prin- 
ciple of the five (5) day week insofar as these principles relate to 
working schedules for employees. To the extent that it reasonably 
can, the Industry will endeavor to employ its labor on that basis. 

(j) No employer shall knowingly permit any employee to work 
for an}^ time which when totaled with that already performed for 
another employer or employers exceeds the maximum permitted 
herein. 

Section 4. Wages. — No employer shall pay any clerical, office, 
service, sales employee (except out-side salesmen), or any other em- 
ployee not specifically covered in this or any other paragraph less 
than at the rate of fifteen ($15.00) dollars per week in any city of 
over 250,000 population, or in the immediate trade area of such 
city ; nor less than at the rate of fourteen ($14.00) dollars per week 
in any city or town of 250,000 or less population; provided, that 
office boys and/or office girls shall be paid not less than eightv (80) 
percent of the rates fixed by this section ; and provided further that 
such office boys and/or office girls in each plant shall not exceed five 
(5) percent of the class of employees covered by this section; and 
provided further, that each member of the Industry shall be entitled 
to at least one (1) such office boy and/or office girl. 

Section 5. No employer shall pay any factory employee less than 
forty (40) cents per hour; provided that nothing in "Section 3 of 
this Article shall apply to or aifect any bona fide apprentice duly 
indentured under a system or course ol training which when com- 
pleted will make the apprentice a skilled mechanic. A copy of each 



77 

such indenture shall be filed with the Code Authority. At no time 
shall new apprentices be admitted to apprenticeship in the employ 
of any one employer when such action will bring the total number 
of apprentices in the employ of such employer to more than five (5) 
percent of the total number of employees covered by this section; 
provided, however, that each employer shall be entitled to at least 
one apprentice. 

It is agreed that this paragraph establishes a guaranteed minimum 
rate of pay regardless of whether the employee is compensated on 
the basis of a time rate, piecework, or other basis. 

Female employees doing substantially the same work as that per- 
formed by male employees shall receive a rate of compensation equal 
to that of such male employees. 

Section 6. The wage rates above the minimum fixed by this article 
shall be equitably adjusted, if this has not been done since May 1, 
1933, and in no case shall they be decreased as the result of such 
adjustments. Each member of the Industry shall report all such 
adjustments to the Code Authority within thirty (30) days after the 
effective date. 

Section 7. No employer shall re-classify emploj^ees or duties of 
occupations performed or engage in any other subterfuge for the 
purpose of defeating the purposes or provisions of the Act or of this 
Code. 

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. 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 9. Within each State this Code shall not supersede any 
laws of such State imposing more stringent requirements regulating 
the age of employees, wages, hours of work, or health, welfare or 
general working conditions, than are imposed by this Code. 

Section 10. Each employer shall keep posted in conspicuous places, 
easily accessible to employees, full copies of this Code, and any 
amendments and modifications which may later be approved. 

Article IV — Administration 

Section 1. To effectuate the policies of the Act and to provide 
for administration of this Code within the Industry, a Code Author- 
ity of five (5) members shall be established by the Industry. Fur- 
thermore, upon request of the Administrator, non-voting representa- 
tives not to exceed three (3) in number, to be appointed by him, 
shall be added to such Code Authority. All employers engaged in 
the Industry as herein defined shall be entitled to participate in the 
election of such members of the Code Authority ; such election may 
be by proxy, letter-ballot or in person. Such election shall be deter- 
mined by a majority vote of the members of the Industry, present 
at the election or represented by proxy or letter-ballot, each member 
being entitled to one (1) vote. The individuals so elected shall serve 
for terms of one (1) year respectively, at the end of which successors 
shall be elected as above provided. Any individual elected to the 



78 

Code Authority shall be eligible for re-election. Vacancies may be 
filled by the Code Authority. 

Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the (Jode Authority shall : 

(1) Impose no inequitable restrictions on membership, and (2) 
submit to the Administrator true copias 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. 

In order that the Code Authority shall at all times be truly repre- 
sentative of the Industry and in other respects comply "with the pro- 
visions of the Act, the Administrator may 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 2. The Code Authority shall have the following duties 
and powers to the extent permitted by the Act : 

(a) The Code Authority shall be charged with the supervision and 
administration of this Code and may adopt by-laws, rules and 
regulations for its procedure and for the administration of this 
Code. 

(b) In order that the President may be informed of the extent of 
observance of the provisions of this Code and of the extent to which 
the declared policy of the National Industrial Recovery Act is being 
effectuated in the Industry as herein defined, the Code Authority 
shall make such reports as the Administrator may require, and each 
member of the Industry shall make such sw^orn or unsworn reports 
to the Code Authority periodically, or as often as it may direct, on 
wages, hours of labor, conditions of employment, number of em- 
ployees, production, shipments, sales, stocks, prices, and other mat- 
ters pertinent to the purposes of this Code as the Code Authority 
may require, subject to the approval of the Administrator. 

(c) Members of the Industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authority and 
to participate in the selection of the members thereof by assenting 
to and complying with the requirements of this Code and sustaining 
their reasonable share of the expenses of its administration. The 
reasonable share of the expenses of administration shall be deter- 
mined by the Code Authority, subject to re\dew by the Adminis- 
trator, on the basis of volume of business and/or such other factors 
as may be deemed equitable to be taken into consideration. 

(d) In addition to information required to be submitted to the 
Code Authority, there shall be furnished to Government Agencies 
such statistical information as the Adminstrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the National 
Industrial Recovery Act. 

(e) The Code Authority shall appoint a secretary and any and 
all information requested by the Code Authority shall be filed 
with the secretary and deemed confidential and shaU not be divulged 



79 

to any member except in summary, but shall be available to the 
Administrator upon request. 

(f) The Code Authority may designate the National Association 
of Bottling Machinery Manufacturers or any other appropriate 
agency to assist it in carrying out the powers and duties conferred 
upon it by this Code; provided, that the Code Authority shall not 
be relieved of responsibility and that when such Association acts in 
such capacitj^ it shall comply with all the provisions of this Code 
applicable to the Code Authority. 

(g) The Code Authority may from time to time appoint such sub- 
committees or designate such agencies, and may delegate to any of 
them such of its powers and duties, as it shall deem necessary or 
proper in order to effectuate the provisions and purposes of this 
Code. 

(h) The Code Authority shall study the effect of the various pro- 
visions 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 modi- 
fications will become effective as part of the Code, upon approval by 
the Administrator after such notice and hearing as he may specify. 

Section 3. 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 interested 
party to the Administrator. 

Section 4. 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 
proceed with such action in its original or modified form. 

Article V — Trade Practices 

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

Section 1. The secret payment or allowance of rebates, refunds, 
commissions, credits, or unearned discounts, whether in the form oi 
money or otherwise, or the secret extension to certain purchasers of 
special services or privileges not extended to all purchasers on like 
terms and conditions. 

Section 2. 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 inter- 
fere with or obstruct the performance of such contractual duties. 



80 
Article VI — General 

Section 1. No provisions of this Code shall be construed, inter- 
preted, or applied in such a manner as to — 

(a) Promote monopolies or monopolistic practices. 

(b) Promote or encourage unfair competition. 

(c) Eliminate or oppress small enterprises. 

(d) Discriminate against small enterprises. 

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 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. 

Section 3. This Code, except as to provisions required by the 
Act, may be modified on the basis of experience or changes in cir- 
cumstances, 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 VII — Violations 

Violation by any member of the Industry of any provision of this 
Code or an}^ rule or regulation issued thereunder, or any delib- 
erately false statement or report made to the Administrator or the 
Code Authority, after decision thereon by the Administrator pur- 
suant to Article IV of this Code, shall constitute an unfair method 
of competition and the offender shall be subject to the penalties 
provided by the Act. 

Article VIII — Effective Date 

The Code shall become effective eleven (11) days after it is 
approved by the President. 



Approved Code No. 379. 
Registry No. 1399-22. 



o 



Approved Code No. 380 
CODE OF FAIR COMPETITION 

FOR THE 

USED TEXTILE MACHINERY AND ACCESSORIES 
DISTRIBUTING TRADE 

As Approved on April 4, 1934 



ORDER 



Approving Code of Fair Competition for the Used Textile 
Machinery and Accessories Distributing Trade 

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 Used Textile Machinery and Accessories 
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 : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
]Dursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated Decem- 
ber 30, 1933, and otherAvise; 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, 
Ad'ininistrator for Industrial Recovery. 

Approval recommended : 
A. R. Glancy, 

Division Adininistrator. 

Washington, D.C, 

April ^, 193^. 

51235" 482-27 34 (81) 



REPORT TO THE PRESIDENT 

The President, 

The White House, 
Sir: This is a report on the Code of Fair Competition for the 
Used Textile Machinery and Accessories Distributing Trade, as re- 
vised after a Public Hearing held in Washington on the 19th day of 
March in accordance with the provisions of the National Industrial 
Recovery Act. 

PRO\^SIONS AS TO HOURS AND WAGES 

Employment is limited to 8 hours a day and 40 hours and 6 days 
a Aveek with the exception of those employees engaged in emergency 
maintenance or repair work or on emergencies occasioned by the 
necessity for services of specially skilled employees who cannot be 
replacecl. A tolerance of 8 hours a week for 6 weeks in any 26 weeks' 
period is permitted. Overtime in excess of 8 hours in any 24-hour 
period or in excess of 40 hours in any 7-day period shall be paid for 
at one and one-half times the regular rate. 

A minimum wage of 40 cents an hour is established except in Vir- 
ginia, North Carolina, South Carolina, Georgia, Florida, Alabama, 
Mississippi, Texas, Louisiana, and Tennessee in which states a 35-cent 
rate is permitted. 

Female and male emjiloyees will receive the same rate of pay for 
substantially the same work. 

Child labor is prohibited by the standard IG and 18 year provisions. 

ECONOMIC EFFECT OF THE CODE 

This Trade, comprising 81 companies, shows a gain in employment 
under the President's Re-employment Agreement and the provisions 
of this Code from about 282 employees in 1932 to about 429 employees 
or an increase of approximately 52%. 

The invested capital is approximately $1,400,000.00, and the in- 
crease in sales from about $7,400,000.00 in 1932 to about $9,400,000.00 
in 1933 is approximately 27%. Based on reports of the first two 
months of 1934 a further increase of 35% is estimated. 

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- 

(82) 



83 

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- 
jDloyees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant group is 
an industrial 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 by me. 
Respectfully, 

Hugh S. Johnson, 

Adviinhtrator. 
April 4, 1934. 



CODE OF FAIR COMPETITION FOE THE USED TEXTILE 
MACHINERY AND ACCESSORIES DISTRIBUTING 
TRADE 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the followinji provisions are established as a Code 
of Fair Competition for the Used Textile Machinery and Accessories 
Distributing Trade, and shall be the standards of fair competition 
for this trade and shall be binding upon every member thereof. 

Article II — Definitions 

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

Section 1. " Used Textile Machinery and Accessories Distributing 
Trade " or the " Trade "' — the sale, exchange, distribution, or pur- 
chase and resale, by others than manufacturers, of all used machin- 
ery, used accessories and supplies, commonly used in all branches 
of the textile industry. 

Section 2. " Employee " — anyone engaged in the Trade in any 
capacity, receiving compensation for his services, irrespective of the 
nature or method of payment of such compensation. 

Section 3. " Employer '' — anyone by Avliom any such employee is 
compensated or employed. 

Section 4. " Member of the Trade " — anyone engaged in the Trade 
as above defined, either as an employer or on his own behalf. 

Section 5. "Association " as used herein means The National As- 
sociation of Dealers in Used Textile Machinery iind Accessories, an 
existing association for the Wnefit of all members of the Trade. 

Section 6. " President ", ""Act ", and "Administrator "—respec- 
tively, 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. No employee shiiU be permitted to work more than 
forty (40) hours in any one (1) week or six (G) days in any one (1) 
week or eight (8) hours in any one (1) day except as herein other- 
wise provided. 

Section 2. The provisions of this Article shall not apply to per- 
sons employed in a managerial, executive or supervisory capacity who 
are paid Thirty-Five ($35.00) Dollars per week or more, or to out- 
side salesmen. 

Section 3. Overtime Provisicms. 

(a) Emergency Overtime. The maxinuun hours fixed in Section 1 
hereof shall not apply to any employee on emergency maintenance 
or emergency repair work involving breakdowns or protection of 

(84) 



1 



85 

life or property, or on emergencies occasioned by the necessity for 
the services of specially skilled employees which cannot be cared for 
by the employment of additional men ; but in any such special case at 
least one and one-half (11/2) times his normal rate shall be paid to 
each employee for all time worked in excess of the maximum hours 
provided in Section 1 hereof. 

(b) Ordinaiy Overtime. The maximum hours fixed in Section 1 
hereof shall not apply for six (6) weeks in any twenty-six (26) 
weeks period during which overtime shall not exceed eight (8) hours 
in any one (1) week. In any such case at least one and one-half 
(1%) times his normal rate shall be paid to such employee for all 
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) day 
period. 

(c) Sunday and Legal Holiday Work. Except to watchmen, 
power plant engineers and firemen, at least one and one-half {IY2) 
times his normal rate shall be paid to each employee for all the time 
worked on Sundays or legal holidays. 

(d) Reporting Overtime. All overtime allowances paid as re- 
quired under the provisions of paragraphs (a), (b) and (c) of this 
Section shall be reported to the Code Authority and made available 
to the Administrator by the Code Authority in such detail as he may 
require. 

Section 4. Watchmen may be permitted to work not more than 
forty-eight (48) hours in any one week nor more than six (6) daj's 
in any seven (7) day period. 

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. 

Article IV — ^^Yages 

Section 1. The minimum wage that shall be paid to any employee, 
except as hereinafter provided, shall be not less than at the rate of 
forty (40^) cents per hour. 

Section 2. The minimum wage that shall be paid to any employee 
in the states of Virginia, North Carolina, South Carolina, Georgia, 
Florida, Alabama, Mississippi, Louisiana, Tennessee and Texas shall 
be not less than at the rate of thirty-five (35v^) cents per hour. 

Section 3. No accounting, clerical, service, sales or other office 
employee shall be paid less than at the rate of Fifteen ($15.00) Dol- 
lars per week. 

Section 4. No hourly, daily or full-time weekly compensation for 
employees who are paid less than Thirty-five ($35,00) Dollars per 
week shall be less than such compensation existing as of June 16, 
1933; and no employee shall be paid a wage rate which will yield 
a less wage for the shorter full-time week herein established than he 
could have earned for the same class of work for the longer full- 
time week existing as of June 16, 1933. Wage increases established 
under the President's Re-employment Agreement shall at least be 
maintained. 

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. 



86 

Section 6. Female employees performing substantially the same 
work as male employees sliall receive the same rate of pay as male 
emplo^'ees. 

Section 7. Employers shall agree to make payment of all wages 
at least every two weeks and salaries at least monthly in lawiul 
currency or by negotiable check. These wages and salaries shall 
be exempt from any charges, fines or deductions, or payments for 
pensions, insurance or sick benefits other than those voluntarily 
paid by the wage earner or required by State law. No employer shall 
withhold wages. The employer or his agents shall accept no rebates 
directly or indirectly on such wages or salaries. Nothing in this 
paragraph is intended to cover revisions in commissions paid to 
salesmen due to allowances or adjustments on sales. 

Section 8. No employer shall eliminate or restrict established 
practices or privileges heretofore granted employees. 

Section 9. No employee may be discharged and re-employed at 
the same class of work at a less weekly compensation than he was 
previously paid and no employee discharged since June 16, 1933. may 
be re-employed at the same class of work at a less weekly compensa- 
tion than he was previously paid. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Trade, and no one under eighteen (18) years of 
age shall be employed at operations or occupations hazardous in 
nature or detrimental to health. In any State an employer shall 
be deemed to have complied with this provision if he shall have on 
file a certificate or permit duly issued by the Authority in such state 
empowered to issue employment or age certificates or permits, show- 
ing that the employee is of the required age. Each member of the 
Trade shall submit to the Code Authority within thirty (30) days 
after the effective date of this Code a list of hazardous occupations, 
which shall thereafter be submitted by the Code Authority to the 
Administrator. 

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. 

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

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

Section 5. No provision in the 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, sanitaiy, or general working conditions or insurance or fire 
protection, than are imposed by this Code. 



87 

Section 6. No employer shall re-classify employees or duties of 
the occupations performed or engage in any other subterfuge so as 
to defeat 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 to the Code Authority by each member of the Trade 
within six (6) months after the effective date of this Code. 

Section 8. Each employer shall post and keep posted in ten point 
type or larger the full labor provisions of this Code, and the name 
and address of the nearest official place where Code violations may 
be reported, in conspicuous places, readily accessible to the employees 
in the normal course of their customary occupations. 

Section 9. No employee shall be dismissed by reason of making 
a complaint or giving evidence with respect to an alleged violation 
of this Code. 

Article VI — Administration 

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

Section 1. Organization and constitution of Code Authority : 

(a) The Code Authority shall consist of not less than five (5) and 
not more than ten (10) individuals. 

(b) Five (5) members (who shall be representative of the three 
(3) territorial areas of the Trade as determined by the Association) 
shall be elected by the Board of Governors of the Association at a 
meeting duly called for that purpose by a member vote. 

(c) If any members of the Trade who have complied with Sec- 
tion 4 of this Article VI who are non-members of the Association 
desire representation, they may elect two (2) members of the Code 
Authority at a meeting duly called for that purpose, by member vote. 

(d) The administrator may appoint not more than three (3) mem- 
bers of the Code Authority to represent him or such interests as he 
may designate. 

(e) Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall: 
(1) Impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, by- 
laws, regulations, and any amendments when made thereto, together 
with such other information as to membership, organization, and 
activities as the Administrator may deem necessary to effectuate the 
purposes of the Act. 

(f ) In order that the Code Authority shall at all times be truly 
representative of the Trade 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 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. 

(g) There shall be a Regional Committee in each territorial area 
of the Trade. hereinb>2ifore referred to in subdivision (b) of 
this section, to assist the Code Authority in administering the Code, 
said committee to consist of not more than three (3) members of 



88 

the Trade in such area, elected by the members of the Trade in such 
area. 

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

(a) Present to the Administrator recommendations based on con- 
ditions in the Trade as they may develop from time to time which 
will tend to effectuate the operation of the provisions of this Code 
and the policy of the National Industrial Recovery Act. Such rec- 
ommendations for amendment and modification shall, upon approval 
by the Administrator after such notice and hearing as he may 
specify, become operative as a part of this Code. 

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

(c) Investigate and inform the Administrator on behalf of the 
Trade as to the importation of competitive articles into the United 
States in substantial quantities or in increasing ratio to domestic pro- 
duction on such terms or under such conditions as to render ineffec- 
tive or seriously to endanger the maintenance of this Code, and act 
as an agency for making complaint to the President on behalf of 
the Trade, under the provisions of the Act, with respect thereto. 

(d) Hear and attempt to adjust complaints in accordance with 
law; consider proposals for amendments to this Code and make 
recommendations to the Administrator thereon. 

(e) Make rules and regulations necessary for the administration 
of this Code, subject to the right of any affected person to appeal 
to the Administrator. 

(f) 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 production and 
distribution employers under this Code and under such other codes 
to the end that such fair trade practices may be proposed to the 
Administrator as amendments to this Code and such other codes. 

(g) To insure the execution of the provisions of this Code and 
provide for compliance of the Trade with the provisions of the Act. 

Sections, (a) In order to provide data necessary for the adminis- 
tration of this Code, all members of the Trade shall furnish to the 
Code Authority such information or reports as may be required, 
subject to the approval of the Administration. Such information 
as may be submitted by a member shall not be revealed to anyone 
not a member of the Code Authority, provided, however, that such 
information and reports shall at all times be available to the 
Administrator. 

(b) In addition to information required to be submitted to the 
Code Authority, there shall be furnished to Government Agencies 
such statistical information as the Administrator may deem neces- 
sary for the purposes recited in Section 3 (a) of the Act. Nothing 
contained in this Code shall relieve any member of the Trade of any 
existing obligations to furnish reports to Government Agencies. 

Section 4. Members of the Trade shall be entitled to participate 
in and share the benefits of the activities of the Code Authority and 
to participate in the selection of the members thereof (subject to 
the provisions of subdivision (c) of Section 1 of this Article VI) 



89 

by assenting to and complying with the requirements of the Code 
and sustaining their reasonable share of the expense of its adminis- 
tration. The reasonable share of the expense of administration shall 
be determined by the Code Authority, subject to review by the 
Administrator, on the basis of volume of business and/or such other 
factors as may be deemed equitable to be taken into consideration. 

Section 5. If the Administrator shall determine that any action 
of a Code Authority or any agency thereof may be unfair or unjust 
or contrarj'^ 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 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 any- 
one for any act of any other member, officer, agent or employee of 
the Code Authority. Nor shall any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties here- 
under, be liable to anyone for any action or omission to act under 
this Code, except for his own willful mis-feasance or non-feasance. 

Article VII — Trade Practices 

The following practices constitute unfair methods of competition 
and are prohibited : 

Section 1. False Marking or Branding : False marking or brand- 
ing of any product of the Trade which has the tendency to mislead 
or deceive customers or prospective customers, whether as to the 
grade, quality, substance, character, nature, origin, size, finish, or 
preparation of any product of the Trade, 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 prepara- 
tion of any product of the Trade, or the credit terms, values, poli- 
cies, or services of any member of the Trade, or otherwise, having 
the tendency or capacity to mislead or deceive customers, or prospec- 
tive 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 as far as such articles are actually used for commercial 
bribery as hereinbefore defined. 

Section 4. Interference with Contractual Relations: Maliciously 
inducing or attempting to induce the breach of an oral or written 



90 

contract between a competitor and his customer or source of supply, 
or interfering with or obstructing the performance of any such con- 
tractual duties or services. 

Section 5. Secret Rebates: Secretly paying or allowing rebates, 
refunds, commissions, credits, or unearned discounts, whether in the 
form of money or otherwise. 

Section 6. Giving of Prizes, Premiums or Gifts: Giving or 
offering to give prizes, premiums, or gifts in connection with the sale 
of products of the Trade 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 representation, or by 
false disparagement of the grade or quality of their goods. 

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

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 
in authority, by bribery, or by any other unfair method. 

Article VIII — General 

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 sj)ecifically, but without limitation, to 
the right of the President to cancel or modif}'^ his approval of this 
Code or any condition 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 or supplements to be 
based upon application by the Code Authority to the Administrator 
with such notice of hearing as he shall specify, and to become effective 
on approval by the Administrator. 

Section 3. No provision of the Code shall be so applied as to per- 
mit monopolies or monopolistic practices, or to eliminate, oppress, 
or discriminate against small enterprises. 

Section 4. If any member of this Code is also an employer of 
labor in any other Trade of industry, the provisions of this Code 
shall apply to and affect only that part of his business which is in 
the Used Textile Machinery and Accessories Trade. 

Article IX — Effective Date 

This Code shall become effective on the eleventh day after its 
approval b}'^ the President. 



Approved Code No. 3S0. 
llegistry No. 1333-12. 



o 



Approved Code No. 381 
CODE OF FAIR COMPETITION 

FOR THE 

FUR DEALING TRADE 

As Approved on April 4, 1934 



ORDER 



Approving Code of Fair Competition for the Fur Dealing Tradh 

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 Fur Dealinor Trade, and hearings having 
been duly held thereon and the annexed report on said Code, con- 
taining findings with respect thereto, having been made and directed 

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

Hugh S. Johnson, 
Administrator for Industrial Recovery, 
Approval recommended: 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

April I, 1934. 

51232° 482-21 34 (91) 



REPORT TO THE PRESIDENT 

The President, 

The White Hov.se. 

Sir : This is a report on the approved Code of Fair Competition for 
the Fur Dealing Trade, the hearing on which was conducted in 
Washington, December 18, 1933, in accordance with the provisions 
of the National Industrial Recovery Act. 

The minimum wages provided in this code are Twenty Dollars 
($20,00) per week in the metropolitan area and Seventeen Dollars 
and Fifty Cents ($17.50) per week in any other part of the United 
States or its possessions and territories. Apprentices are to receive 
Twelve Dollars ($12.00) per week during the first six months of 
employment and thereafter not less than the minimum rates pro- 
vided in the code. Any time worked by an apprentice shall be 
deemed a part of such apprenticeship 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 em- 
ployer shall at no time exceed five per cent (5%) of the total number 
of employees engaged by such employer. 

The provisions of this code provide that no employee shall be per- 
mitted to work in excess of forty (40) hours in any one week or 
eight (8) hours in any twenty-four (24) hour period, nor more than 
six (6) days in any seven (7) day period except by payment of not 
less than one and one-third times the normal rate for time in excess 
thereof and it is provided that no employee shall work in excess 
of ninety-six (96) hours of overtime in any one calendar year. 

The function of the Fur Dealing Trade is primarily the collection 
of raw skins from all sources, and frequently their processing by fur 
dressers and fur dyers, and the ultimate sale thereof to the various 
divisions and sub-divisions of the manufacturing branch of the Fur 
Industry. 

While the trade does not employ labor to any great extent, it is 
a most important and influential factor in the Fur Industry, by 
reason of the fact that by its capital investment, supplies the credit 
needs to all other industrial sub-divisions of the Fur Industry. 
Until its final consumption, the fur dealer has the burden of carrying 
the entire crop of domestic and foreign, raw and processed furs har- 
vested during a comparative short season, for about ten (10) months 
to one (1) year prior to its consumption. 

The minimum wage and maximum hour provisions of this code 
will affect approximately ten percent (10%) of the employees in the 
trade. This is largely due to the fact that most of the dealers have 
very few employees and a large majority of these are employed on an 
annual basis, at salaries far in excess to the minimum provided in 
the code. Section 6, Article IV of the code provides for a special 
commission to be appointed to study the problem of wages in the 

(92) 



93 

trade and the recommendations of this committee, which shall be 
made within ninety (90) days after the effective date of the code, 
upon the approval of the Administrator, shall become effective pro- 
visions of the code. 

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

(b) Said 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 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 Industry ; 
and that said associations impose no inequitable restrictions on ad- 
mission to membership therein. 

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

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

(f ) Those engaged in other steps of the economic process have not 
been deprived of the right to be heard prior to approval of said Code, 
and for these reasons, this Code has been approved. 

Kespectfully, 

Hugh S. Johnson, 

A dministrator, 
April 4, 1934. 



CODE OF FAIK COMPETITION FOR THE FUR DEALING 

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 Fur Dealing Trade, and shall be the 
standard of fair competition for said trade and shall be binding 
upon every member thereof. 

Article II — Definitions 

Section 1. The term " trade " as used herein shall mean the busi- 
ness of dealing in fur skins in the raw, dressed, or dressed and dyed 
state by any person, firm or corporation on his or its own account. 
It does not include dealing in such fur skins as brokers only or as 
auctioneers only. 

Section 2. The term " member of the trade " as used herein shall 
include anj^one engaged in the trade either as an employer or on his 
own behalf. 

Section 3. The term " employee " as used herein shall include 
any and all persons engaged in the trade however compensated, 
except a member of the trade. 

Section 4. The term "Rabbit Dealing Division" as used herein 
shall include all those whose business to the extent of at least eighty- 
five per cent (85%) consists in dealing in rabbit skins. 

Section 5. The term " General Division " as used herein shall 
include all those in the trade who are not members of the Rabbit 
Dealing Division. 

Section 6. The term " metropolitan area " as used herein shall 
include the territory within a radius of twenty-five miles of Colum- 
bus Circle, New. York, N.Y. 

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

Article III — Hours 

Section 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 hour period, nor 
more than six days in any seven day period, except by payment of 
not less than one and one-third times the normal rate for time in 
excess thereof, provided that no employee shall work in excess of 
ninety-six (9G) hours of overtime in any one calendar year. 

(94) 



95 

Section 2. The provisions of this article shall not apply to em- 
ployees engaged in managerial, executive, or supervisory capacities, 
nor to executive secretaries, provided that all such persons receive 
not less than Thirtv-five Dollars ($35.00) per week. The Code 
Authority Board, subject to the disapproval of the Administrator, 
shall have the power to determine in any particular case whether 
or not a person may be classified as a manager, executive, supervisor 
or executive secretary, as well as the classification of employees 
specified in Section 3, hereafter. Each member of the trade shall 
file with the Code Authority Board within fifteen (15) days after 
the effective date of this code, a complete list of persons engaged 
in the foregoing capacities, as well as the capacities specified in Sec- 
tion 3 hereafter, and shall immediately inform the Code Authority 
Board of any change in such list. No person not so registered shall 
at any time work in excess of the maximum hours herein prescribed. 

Section 3. The provisions of this article shall not apply to out- 
side salesmen nor to buyers nor to solicitors. 

Section 4. The maximum hours fixed in the foregoing sections 
shall not apply to any necessary employee engaged during an emer- 
gency situation which may arise whereby the product of the employer 
may be spoiled or destroyed while in a perishable condition, but in 
such cases the employer may put such product through the regular 
process into a non-perishable condition, and for all such emergency 
overtime in excess of the limitations hereinbefore provided, the em- 
ployee shall be paid at not less than one and one-third times the 
normal rate of compensation. Each member of the trade shall 
submit to the Code Authority Board, within forty-eight (48) hours 
after the close of such emergency period, a detailed report of all 
hours worked by his employees during such period. 

Section 5. No member of the trade shall engage any employee for 
any time, which when totaled with that already performed exceeds 
the maximum hours permitted herein. 

Section 6. Employees engaged in such work as is customarily done 
by a fur dressing or fur dyeing establishment shall not be permitted 
to work in excess of the hours prescribed for such employees by the 
Code of Fair Competition for the Fur Dressing and Fur Dyeing 
Industry. j 

Section 7. In addition to the foregoing limitations no employer 
or employee in the Rabbit Dealing Division of the trade shall be 
permitted to work in excess of five (5) days in any seven (7) daj 
period. 

Article IV — Wages 

Section 1. Except as hereinafter provided, no employees shall be 
paid less than Twenty Dollars ($20.00) per week when employed 
in the metropolitan area, nor less than Seventeen Dollars and Fifty 
Cents ($17.50) per week when employed in any other part of the 
United States or its possessions and territories. 

Section 2. Employees engaged in such work as is customarily 
done by a fur dressing or fur dyeing establishment shall be paid at 
not less than the rate prescribed by the Code of Fair Competition for 
the Fur Dressing and Fur Dyeing Industry for such employee. 



96 

Section 3. No apprentice shall be paid less than Twelve Dollars 
($12.00) per week during the first six (6) months of employment 
and thereafter not less than the minimum rates provided in this 
article. Any time worked by an apprentice shall be deemed a part 
of such apprenticeship period, whether such time is worked con- 
tinuously 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 five per cent (5%) of the total number of employees 
engaged by such employer, except that employers of less than twenty 
(20) employees may employ not more than one apprentice. 

Section 4. No employee engaged in clerical or office work, and no 
delivery boy under nineteen (19) years of age, shall be paid less than 
Fifteen Dollars ($15.00) per week. 

Section 5. The compensation for employment now in excess of 
the minimum wages provided herein shall not be reduced, notwith- 
standing that the hours worked may be hereby reduced. 

Section 6. A special commission shall be appointed to study the 
problem of wages in this trade and the Code Authority Board shall 
submit to the Administrator within ninety (90) days after the effec- 
tive date of this code recommendations based on the findings of said 
committee concerning the wage provisions of this code, which recom- 
mendations upon the approval of the Administrator, and after such 
notice and hearing as he shall prescribe, shall become effective pro- 
visions hereof. Said commission shall be composed of one person 
appointed by the Labor Advisory Board of the National Recovery 
Administration, one person appointed by the Code Authority Board 
and one person appointed by the Achninistrator. 

Ajrticle V — General Labor PR0^^SI0NS 

Section 1. No person under sixteen (16) years of age shall be 
employed in the trade nor shall any person under eighteen (18) 
years of age be employed in the trade at operations or occupations 
hazardous in nature or detrimental to health. The Code Authority 
Board shall submit to the Administrator a list of such occupations. 
In any State a member of the trade shall be deemed to have complied 
with this provision if he shall have filed with the Code Authority 
Board a certificate or permit dulji' issued by the Authority in such 
State empowered to issue employment or age certificates or permits 
showing that the employee is of the required age. 

Section 2. Employees 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 re{)resentatives 
or in self -organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

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

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



97 

Section 5. No employer shall reclassify employees or duties of oc- 
cupations performed or engage in any other subterfuge for the pur- 
pose of evading the requirements of the Act or provisions of this 
code. 

Section 6. Every employer shall provide for the safety and health 
of his employees at the place and during the hours of employment. 

Section 7. No provision of this code shall supersede any law within 
any Stat-e 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. 

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

Section 9. No provisions in this code shall modify established prac- 
tices for privileges as to vacation periods, leaves of absence or tem- 
porary absence from work heretofore granted to employees. 

Section 10. Employers shall make payment of all wages and sala- 
ries due in lawful currency or by negotiable* check payable on de- 
mand weekly or <?emi -monthly. No employer shall withhold wages 
beyond the periods specified above. 

Article VI — Administration 

Section 1. To further effectuate the policies of the National In- 
dustrial Recovery Act, a code authority known as the Code Authority 
Board of the Fur Dealing Trade, shall be established as follows : 

Section 2. The Fur Dealing Trade shall be classified into the 
following divisions : 

The General Division, 
The Rabbit Dealing Division, 
and subject to the approval of the Administrator, additional divisions 
may be organized or existing divisions consolidated upon recom- 
mendation of the planning committees of all divisions, and the Code 
Authority Board. 

Section 3. There shall be duly appointed to the Code Authority 
Board nine (9) members thereof as follows: 

Three (3) members shall be dul}'^ appointed by the members of the 
American Fur Merchants' Association, Incorporated. 

Three (3) members shall be duly appointed by the members of the 
American Raw Fur Institute, Incorporated. 

One (1) member shall be duly appointed by the members of the 
Chicago Wholesale Fur Credit Association. 

Two (2) members shall be duly appointed by the members of the 
American Rabbit Dealer^' Association. 

The Administrator may appoint not more than three (3) members 
in addition thereto, without vote. 

Section 4. The Code Authority' Board is hereby constituted, in 
cooperation with the Administrator, the administrative agency for 
the Fur Dealing Trade. Such agency may from time to time present 
to the Administrator recommendations based upon conditions in the 
industry as they may develop for the betterment thereof and for the 
purpose of further effectuating the operation of the provisions of this 
code and the policies of the National Industrial Recovery Act. 



98 

Section 5. A Chairman of the Board who shall be presiding and 
chief executive officer thereof shall be elected from its membership 
by majority vote and the election thus made shall be subject to the 
disapproval of the Administrator. 

Section 6. Each division of the Fur Dealing Trade shall by a 
method approved by the Administrator elect its own separate and 
distinct divisional planning committee, which shall be entitled to 
make recommendations on matters pertaining to the administration 
of this code affecting said division. All such recommendations shall 
be presented in writing by the division's representatives to every 
member of the Code Authority Board, and if said Board fails to 
act thereon within twenty (20) days thereafter, such recommenda- 
tions shall be deemed approved by it. If any recommendation by 
a divisional planning committee involving a modification or amend- 
ment of this Code is disapproved by the Code Authority Board, then 
the divisional planning committee presenting such recommendations 
shall be entitled to present the same direct to the Administrator for 
his approval, as by law provided. Each division may carry out the 
approved recommendations of its planning committee subject to 
supervision by the Code Authority Board, all to the end that each 
division may be self governing in all problems relating exclusively 
to itself, including trade terms and trade practices, as well as other 
administrative matters affecting it, but, in any event, subject to the 
disapproval of the Administrator. 

Section 7. In order that the Code Authority Board shall at all 
times be truly representative of the trade, and in other respects 
comply with the provisions of the Act and this code, the Adminis- 
trator may hold such hearing as he may deem proper; and there- 
after if he shall find that the Code Authority Board is not truly 
representative, or does not in other respects comply with the pro- 
visions of the Act and of this code, he may require an appropriate 
modification or take such further action as he may deem necessary. 

Section 8. Each trade association directly or indirectly partici- 
pating in the selection or activities of the Code Authority Board 
shall: (a) impose no inequitable restriction of membership; (b) 
submit to the Administrator true copies of its articles of association, 
by-laws, regulations and any amendments when made thereto, 
together with such other information as to membership, organiza- 
tion and activities as the Administrator may deem necessary to 
effectuate the policies of the Act. 

Section 9. Members of the trade shall be entitled to participate in 
the selection of the members of the Code Authority Board by becom- 
ing a member of one (1) or more of the associations and to share 
in the benefits and activities thereof by sustaining their reasonable 
share of the expenses of the administration. Such reasonable share 
of the expenses of administration shall be determined by the Code 
Authority Board, subject to review by the Administrator on the 
basis of volume of business and/or such other factors as may be 
deemed equitable. 

Section 10. Nothing contained in this code shall constitute the 
members of the Code Authority Board and/or members of the Di- 
visional Planning Committees partners for any ^purpose. Nor i-hall 
any member of the Code Authority Board and/or members of the 



99 

Divisional Planning Committees 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 11. The Code Authority Board shall have the following 
further powers and duties, the exercise of which shall be reported 
to the Administrator and if the Administrator shall determine that 
any action of the Code Authority Board 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 con- 
sideration by the Code Authority Board 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. 

(a) To insure the execution of the provisions of this code sub- 
ject to rules and regulations approved by the Administrator, and 
provide for the compliance of the trade therewith. 

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

(c) To obtain through a confidential agency from the members of 
the trade information and reports based on periods of two or four 
weeks or multiples thereof, for the use of the Code Authorit}^, the 
Divisional Committees and the Administrator, with respect to wages, 
hours of labor, conditions of emploj^ment, number of employees and 
other information necessary for the administration of this code, and 
to provide for submission by members of the trade 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 trade of any 
existing obligation to furnish reports to any governmental agency. 

(d) To use such trade associations and other agencies as it deems 
proper for the carying out of any of its activities provided for herein, 
provided that nothing herein shall relieve the Code Authority Board 
of its duties or responsibilities under this code. 

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

(f) To secure from members of the trade an equitable and pro- 
portionate payment of the reasonable expenses of maintaining the 
Code Authority Board and Divisional Planning Committee and their 
activities. 

(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 further fair trade prac- 
tice provisions to govern members of the trade in their relations 
with each other or with other trades and/or to recommcDd to the 
Administrator measures for industrial planning, including stabiliza- 
tion of employment. 



100 

(i) To support and encourage the establishment as a custom of the 
trade that sales on inspection of raw, dressed or dressed and dyed 
furs, imless otherwise provided by written terms of sale, are sold 
without warranty by the seller. 

(j) To support and give encouragement to the enforcement of all 
State and Federal laws for the conservation of wild life. 

Article VII — Trade Practices 

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

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

Section 3. No member of the trade shall brand or mark any com- 
modity of the trade in any manner which tends to mislead or de- 
ceive purchasers with respect to the grade, quality, quantity, origin, 
size, material content, name, or preparation of such commodity. 

Section 4. No member of the trade shall give, permit to be given, 
or directly offer to give anything of value for the purpose of in- 
fluencing or rewarding the action of any employee, agent or repre- 
sentative of another in relation to the business of the employer of 
such 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 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. No member of the trade shall secretly or otherwise give 
or receive anything of value to or from the employee or agent of a 
customer for the purpose of influencing a sale, or in furtherance of 
a sale render a bill or statement of account to such employee, agent 
or customer, which is inaccurate in any material particular. 

Section 6. No member of the trade shall use any unfair means 
to secure confidential information regarding the manner in which 
a competitor conducts his business. 

Section 7. No member of the trade shall maliciously attempt to 
induce the breach of an existing contract between a competitor and 
his customer or source of supply; nor shall any such member mali- 
ciously interfere with or obstruct the performance of such contractual 
duties or services. 

Section 8. All price lists, circulars, and other literature used in 
the solicitation of raw furs (when the prices are stated) shall quote 
prices payable net to consignors without deduction of any charges 
except transportation; however, a stipulated commission may be 
deducted where goods are actually sold intact on commission for 
the account of shippers. All price lists shall state the expiration 
time of prices quoted thereon. 



101 

Section 9. No member of the trade shall knowingly solicit or buy, 
or in any way deal in, furs illegally taken. 

Section 10. No member of t-he trade shall allow any discount for 
cash payments in excess of 2% cash, net sixty days; beyond sixty 
days notes and accounts shall bear interest at not less than six per 
cent (6% ) per annum aft^r sixty days. 

Section 11. No member of the trade shall give or allow or receive 
secret rebates, refunds, commissions, credits or unearned discounts, 
whether in the form of money or otherwise; nor shall he secretly 
extend to certain purchasers special services or privileges not ex- 
tended to all purchasers on like terms and conditions. Nor shall he 
give or receive unfounded or excessive allowances for damage or 
alleged damage to skins. 

Section 12. No member of the trade shall refund transportation 
charges on direct shipments from trappers. 

Section 13. No member of the trade shall cause raw fur skins 
to be dressed in combination process or otherwise by members of 
the Fur Dressing and Fur Dj'eing Industry, unless such members 
of said industry shall be operating under a registry number and 
N.R.A. insignia, issued by or through the Administrator or the 
Code Authority Board of the Fur Dressing and Fur Dyeing Indus- 
try. No member of the trade shall cause raw or dressed fur skins 
to be dyed in combination process or otherwise by a member of the 
Fur Dressing and Fur Dyeing Industry, unless such dyer shall be 
operating under a registry number and N.R.A. insignia, issued by or 
through the Administrator or the Code Authority Board of the 
Fur Dressing and Fur Dyeing Industry. Dyed skins shall bear 
thereon the unremovable stamp, seal or impression, giving the regis- 
try number and N.R.A. insignia assigned to the member of the Fur 
Dressing and Fur Dyeing Industry. 

Article VIII — Registration Notice 

Section 1. The Code Authority Board may at its discretion and 
upon notice to the Administrator assign to each employer engaged 
in this trade, assenting to and complying with the provisions of this 
code, an N.R.A. insignia and separate registration number. The 
Administrator upon recommendation of the Code Authority Board 
or upon his own motion, after due notice and hearing thereon, may 
revoke the assignment of any such N.R.A. insignia or registration 
number to any employer in the trade upon satisfactory proof that 
such employer has violated the terms or provisions of 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 sub-section (b) of Section 10 of the National Indus- 
trial Recovery Act, from time to time to cancel or modify any order, 
approval, license, rule or regulation issued under Title I of said 
Act and specifically, but without limitation, to the right of the 
President to cancel or modify his approval of this code or any 
conditions imposed by him upon his approval thereof. 



102 

Section 2. This code, except as to provisions required by the Act, 
may be modij&ed 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 Board and to become effective on 
approval of the Administrator alter such notice and hearing as he 
shall specify. 

Article X — Monopolies, Etc. 

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

Article XI — Effective Date 

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

Approved Code No. 381. 
Registry No. 917-10. 

O 



\pproved Code No. 382 
CODE OF FAIR COMPETITION 

FOR THE 

TRANSPARENT MATERIALS CONVERTERS 
INDUSTRY 

As Approved on April 4, 1934 



ORDER 



Appro^ixg Code of Fair Competition for the Transparent 
Materials Converters 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 Transparent Materials Converters Indus- 
trj'^, and hearings having been duly held thereon and the annexed 
rej)oii; on said Code, containing findings with respect thereto, having 
been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved; provided, however, that 
the provisions of Article VII, Sections 2 to 9 inclusive, insofar as 
they prescribe a waiting period between the filing with the Code 
Authority (i.e. actual receipt by the Code Authority) and the effec- 
tive date of revised price lists or revised terms and conditions of sale 
be and they are hereby stayed pending my further order; provided 
further, that within ninety clays 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, 

April ^, 193^. 

51234° 482-28 34 (103) 



REPOKT TO THE PRESIDENT 

The President, 

The White Eotose. 
Sir: This is a report of the hearinff on the Code of Fair Com- 
petition for the Transparent Materials Converters Industry, con- j 
ducted in Washington on January 30, 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 I 
weekly tolerance of eight hours to be paid for as overtime, and limited i 
to 12 weeks per year. The usual exceptions are made m 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 38^ per 
hour for males and 33^ per hour for females. Office employees will 
receive a minimum wage of $15.00 per week in cities of over 500,000 
population, $14.50 per week in cities between 250,000 and 500,000 
population, $14.00 per week in cities between 2,500 and 250,000 popu- 
lation and $12.00 per week in towns less than 2,500 population. 

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 

In 1929, with 10 manufacturers, the Industry employed about 
200 persons. In 1933 the number of manufacturers had increased 
to 56, employing over 2,000 persons. The effect of the Code will be to 
employ approximately 400 additional workers. 

The increase in payrolls as a result of the Code will be about 10%. 

FINDINGS 

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

(104) 



105 

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

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

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

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

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

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

For these reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
April 4. 1934. 



CODE OF FAIR COMPETITION FOR THE TRANSPARENT 
MATERIALS CONVERTERS 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 — ^Deftnitigns 

Where used in this Code and in all Codes subordinate hereto, 
the following definitions shall apply: 

" Industry " — The conversion for sale of transparent cellulose 
sheeting (such as Cellophane, Sylphrap, Kodapak, Protectoid and 
other similar transparent materials) into bags, envelopes and tubes, 
pouches, sheets and rolls (but not photographic materials), ribbons, 
household rolls, excelsior and such miscellaneous products of the 
Industry as may be brought within the Industry as hereinafter 
provided. 

" Member " — A natural person, partnership, association, corpora- 
tion, trust, trustee, trustee in bankruptcy, receiver, or other form of 
enterprise, engaged in such Industry. 

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

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

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

" Association " — The Transparent Materials Converters Asso- 
ciation. 

Article II — Organization and Administration 

Section 1. The Executive Committee of the Association is hereby 
designated as the Code Authority for administering the provisions of 
this Code and is hereinafter referred to as the Code Authority. The 
Administrator may designate three persons as additional advisory 
members thereof ; the member or members so designated shall have no 
vote but in all other respects shall be members of the said Code 
Authority. 

Section 2. The said Association shall file with the Administrator 
certified copies of any amendments of its By-Laws relating to eligi- 
bility or admission to membership in said Association or relating to 
the method of selection of the members of such Executive Committee, 
which said Association may hereafter adopt. 

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

(106) 



107 

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, ma}"- 
be unfair or unjust or contrary to the public interest, the Administra- 
tor may require that such action be suspended to afford an oppor- 
tunity for investigation of the merits of such action and further con- 
sideration by the Code Authority or agency pending final action, 
which shall not be effective unless the Administrator aj^proves or 
unless he shall fail to disapprove after thirty (30) days' notice to 
him of intent to proceed with such action in its original or modified 
form. 

Section 5. The expenses of administering this Code shall be ap- 
portioned among the various divisions in accordance with a formula 
to be adopted by the Code Authority. The expenses of administering 
the Subordinate Code of each Division, together Avith the propor- 
tion of the expense of administerijig this Code allocated to such 
Division, shall be borne pro rata in accordance with a formula to 
be adopted by the Executive Authority of such Division by all mem- 
bers of such Division who accept the benefits of the Code Authority 
and/or the Executive Authority of such Division or otherwise assent 
to this Code. Divisional Associations shall be responsible for the 
payment of all Code administration expense. 

Section 6. 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 7. The Industry is hereby divided into Divisions as set 
forth in Schedule A hereto attached. Any question as to the Division 
into which any particular grade, class or kind of products of the 
Industry may fall, shall be determined by the Code Authority. 

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

Section 9. The Code Authority may create new Divisions by the 
sub-division of any such Divisions or by the consolidation of any 
two or more of such Divisions, provided, however, that no such sub- 
division or consolidation shall be made without the consent of the 
Divisional Association of each Division affected thereby. 

Section 10. In each Division there may be one Divisional Associa- 
tion to which every member of the Industry engaged in the manufac- 
ture of any product included in such Division shall be eligible for 
membership. 

Section 11. 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 rela- 
tionships between production and distribution employers under this 
Code and under such others to the end that such Fair Trade Prac- 



108 

tices may be proposed to the Administrator as amendments to this 
Code and such other Codes. 

Section 12. Noth.ing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose ; nor shall 
any members of the Code Authority be liable in any manner to any 
one for any act 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 — DivisioNAii Codes 

Section 1. Each such Divisional Association may adopt a Divi- 
sional Code and may either submit the same as a supplement to this 
Code or submit the same subsequently through the Code Authority 
to the President of the United States for his approval. Such Divi- 
sional Codes, when so approved, shall have the same force and effect 
as to the Division of the Industry affected thereby as this Code. 

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

Section 3. Each such Divisional Code shall designate an agency 
for the purpose of administering such Divisional Code which shall be 
denominated " The Executive Authority " of such Division. 

Section 4. Such Divisional Codes may contain such provisions re- 
lating to said Division as may be appropriate for inclusion in a Code 
of Fair Competition under the Act, provided that no such Code shall 
contain any provision contrary to or inconsistent with the provisions 
of this Code. 

Article IV — Hours or 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, truck drivers and their helpers: One hundred 
eighty (180) hours in any period of four 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. 

(c) Engineers, firemen and electrical operators: One hundred 
sixty-eight (168) hours in any period of four 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 



109 

da}' or forty-five (45) hours in any one week shall be jiaid for as 
not less than time and one-third. 

(d) All other laborers employed in am' 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, iDrovided, 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) Employees regularly engaged in a managerial or executive 
capacity and their personal secretaries, and supervisors, receiving 
thirty-five ($35.00) dollars or more per week, and outside salesmen: 
No limitation. 

(f) All other employees: An average of forty (40) hours per 
week in any period of eight (8) consecutive weeks, but not to exceed 
forty-eight (48) hours in any one week. 

Section 2, No limitation contained in said schedule shall apply 
to employees of anj^ class when engaged in emergency repairs or 
emergency maintenance work occasioned by break-downs or involv- 
ing protection of life or property. 

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

Section 4. At such intervals as the Code Authority shall prescribe, 
every member shall furni,sh to the Code Authority such information 
as it may require, in order to enable it to determine whether the 
limitations contained in said Schedule have been exceeded. 

Section 5. No female employed will be required or permitted to 
work between 10 P.IM. and 5 A!M. 

Section 6. No employee of the classes covered by Sections l-(b), 
(c), (d) and (f) shall be required or permitted to work more than 
six (6) days in a period of seven (7) consecutive days. 

Article V — Wages 

Section 1. The minimum rate of wage of any employee, other than 
office or clerical employees, employed in any plant of the Industry, 
or on work connected with or incidental to the operation of such 
plant, .shall be as follows : 

Male labor 38 cents jier hour 
Female labor 33 cents per hour 

Section 2. Provided, however, that in case the rate per hour for 
any class of labor was, on July 15, 1929, less than the minimum rate 
above specified for the same class of labor, then the minimum rate 
for such class of labor shall be the rate paid on July 15, 1929, but in 
no event les,s than ninety (90%) per cent of the rate above specified. 

Section 3. The Code Authority shall obtain statistical data con- 
cerning the effect of the above proviso on wage rates in the Industry, 
and shall within ninety (90) days after the effective date of this 
Code make a report thereon to the Administrator. 

51234° 482-28 34 2 



110 

Section 1. 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 5. The minimum rates of wages for all other employees, 
except commission salesmen, shall be as follows : Not less than $i5.00 
per week in any city of over 500,000 population, nor less than $14.50 
per week in anv city between 250,000 and 500,000 population, nor 
less than $14.00 per week in any city between 2,500 and 250,000 
population, nor less than $12.00 per week in towns of less than 2,500 
population. 

Section 6. In the event that the wa^es specified for the Northern 
Zone in Article V, Section 1, in the Code of Fair Competition for 
the Paper Bag Manufacturing Industry, and Article V. Section 4, 
of said Code, as a})proved on January 26, 1934 are modified pursuant 
to the hearing held on February 13, 1934 for the purpose of determin- 
ing the adequacy of the minimum vvages established in said Code, 
then and in that event, such amended provision shall apply also to 
this Industry and this Code, and Sections 1, 2 and 5 of Article V 
of this Code shall be deemed to have been amended so as to conform 
thereto and the Administrator may direct that this Code be reprinted 
and republished as so amended. 

Section 7. 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 8. On the effective date hereof, the v\'age rates of all ein- 
ploj^ees receiving more than the minimum rates herein prescribed 
shall be reviewed and such adjustments made therein as are equi- 
table, but in no case shall they be decreased, provided, however, that 
where such equitable adjustments have been made prior to the effec- 
tive date hereof no further adjustments will be required. Within 
sixty (60) daj's after the effective date hereof, the Code Authority 
shall report to the Administrator the action taken by all members of 
the Industry under this Section. 

Section 9. A person whose earning capacity is limited because 
of age, plwsical or mental handicap or other infirmity, may be em- 
ploj'ed on light work at a wage below the mininnnn established by 
this Code if the employer obtains from the State authority, desig- 
nated by the United States Department of Labor, a certificate 
authorizin,g 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 monthh^ Avith the Code Authority a list of all such persons 
em])loyed by him, showing the wages paid to and the maximum 
hours of Avorlv for such employees. 

Seciton 10. Office boys and girls under 18 3'ears of age may be 
employed at a v^'age of not less than 80% of the minimum prescribed 
by Section 5 hereof, proA'ided that not more than five (5%) percent 
oi the employees of such class may be paid as office boj^s and girls. 



Ill 

Article VI — General Labor Provisions 

SEcnoN 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 eniplo3'ed at operations or occupations which are hazardous 
in nature or dan,gerorts to healtih The Code Authority shall submit 
to the Acbninistrator ^Yitllin 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 certificat-e 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. Emj)lo3''ees shall have the right to organize and bar- 
gain collectively through representatives of their own choosing, and 
shall be free from the interference, restraint, or coercion of employers 
of labor, or their agents, in the designation of such representatives 
or in self-organization or in other concerted activities for the pur- 
pose of collectible bargaining or other mutual aid or protection. No 
employee and no one seeking emploj'^ment shall be required as a 
condition of employment to join any coriipany union or to refrain 
from joining, organizing or assisting a labor organization of his own 
choosing. Employers shall comply w^ith 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 of 
occupations performed or engage in any other subterfuge for the pur- 
pose of defeating the purposes or provisions of the Act, or of this 
Code. 

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

Section 6. Every emj^loyer shall make reasonable provisions for 
the safety and health of his emploj^ees at the place and during the 
hours of their employment. Standards for safety and health shall 
be submitted by the Code Authority to the Administrator within 
six (6) months after the effective date of this Code. 

Section T. 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 Ad- 
ministrator within six (6) months after the effective date of this 
Code, a plan for the stabilization and regularization of employment. 

Section 8. The manufacture or partial manufacture of any prod- 
uct of the Industry in homes shall be prohibited. 



112 

Article VII — Accouxtixg- Selling ^ 

Section 1. The Code Autliority shall cause to be formulated an 
accountinfi- s3\steni 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 2. Each member shall, within twenty-four (24) hours 
after the effective date of this Code, file with the ExecutiA'e Author- 
ity of his Division, or Divisions, in such form as such Executive 
Authority shall prescribe, complete lists or schedules of prices, terms 
and conditions of sale (including all differentials, discounts, trade 
allowances and special charges) of all products falling within the 
scope of sucli Division, offered for sale by such member, and shall so 
file all subsequent changes therein or revisions thereof at least three 
(3) days, but not more than five (5) days, prior to the effective date 
of any such changes or revisions. When any member shall file any 
such schedule of prices, or any revisions thereof, any other member 
may also file a revision of its own schedules and, if such other mem- 
ber shall so desire and state therein, the same shall be effective as 
of the same date as the schedule or revision thereof first in this 
sentence referred to. Each such schedule of prices shall conform to 
all trade practices and other provisions established in and by this 
Code or any Subordinate Code applicable thereto or any amendment 
or supplement to this Code or to such Subordinate Code. 

Section 3. The Executive xiuthority of each Division shall provide 
each member of its Division with, copies of all schedules so filed and 
shall upon request furnish copies thereof at cost to any interested 
pei'son. 

Section 4. The Executive Authority of any Division may, from 
time to time, with the approval of the Code Authority, change in 
respect to all or any of the products of such Division, the period of 
time Avhich shall elapse between the date of filing and the effective 
date of any schedule; provided that such period shall not be less 
than twenty-four (24) hours or more than five (5) daj's; and pro- 
vided further, that pending the holding of a meeting of the Code 
Authority, the Chairman thereof may grant an interim approval 
of such action. The Executive Authority shall give immediate no- 
tice of such change to the members of the Division. 

Section 5. No such schedule of prices, terms and conditions of sale 
filed by any member, or in effect at any time in any calendar month, 
shall be such as to permit the sale of any product at less than the 
lower of the following : 

(a) The cost of such product to such member, vs'hich cost shall be 
determined pursuant to the method of accounting and costing pre- 
scribed by the Code Authority under this Article as soon as that 
method is prescribed and theretofore pursuant to the method em- 
ployed by such member subject to such preliminary rules as the Code 
Authority, with the approval of the Administrator, shall prescribe. 



^ Seo paragraph 'A of order approving Uii.s Code. 



113 

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

Section 6. Each schedule filed under this iirticle shall state 
whether the prices, terms and conditions therein specified are justi- 
fied under sub-division (a) or under sub-division (b) of Section 5, 
and in the case of justification under sub-division (b) shall identify 
the schedule or schedules of the other member or members of the 
Industry justifying such prices and conditions. A schedule justified 
upon the basis of the schedule or schedules of another member or 
members shall become void forthwith upon the cancellation or 
revision upward of such justifying schedule or schedules. 

Section 7. Except in fulfillment of bona fide contracts existing 
on the effective date of this Code, no memljer of the Industry shall 
sell an}' products of the Industry for domestic consumption at a 
price or prices lower than or upon terms or conditions more favor- 
able than stated in his price schedule then on file, provided, however, 
that discontinued lines or damaged goods or seconds of any product 
ma}' be disposed of in such manner and on such terms and conditions 
as a member shall publish, prior to the sale thereof, witli the Execu- 
tive Authority of the Division into which such ]:)roducts fall. Within 
ten (10) days after the effective date of this Code, each member shall 
file with the Executive Authorit}^ of the interested Division complete 
details of all such bona fide contracts and this information shall be 
aA'ailable to the Executive Authority of each Division. 

Section 8. The Code Authority by and through a disinterested 
representative or agent shall have power on its own initiative, or on 
the complaint of any member, to investigate any price for any 
product shov^n in any schedule filed hereunder by any member, and 
for the purpose of the investigation thereof to require such member 
to furnish such information concerning the cost of manufacturing 
such product as the Code Authority shall deem necessary or proper 
for such iiui-pose. Pending such investigations the Administrator 
may suspend any such price. If the Code Authority after such 
investigation shall determine that such price violates the provisions 
hereof, or would tend to render ineffective or seriouslv to endanger 
tlie maintenance of this or any Subordinate Divisional Code, the 
Code Authority shall so notify such member and the Executive 
Authority w.ith which such price was filed, and thereupon such price 
shall become void and of no effect. A notice of all decisions of 
the Code Authority under this Section, together with the reasons 
therefor, shall be filed with the Administrator. All such decisions 
shall be subject to suspension, cancellation or modification by the 
Administrator. 

Section 9. The Executive Authority of any Division may, with 
the approval of the Code Authority, suspend for any period of time, 
and from time to time, the provisions of Sections 2, 3, 4, 5 and 6 of 
this Article in respect of any or all of the products of such Divisions; 
provided, hov\-ever, that pending the holding of a meeting of the 
Code Authority the Chairman thereof ma}' grant an interim 
approval of such action. 



114 

ApwTicle YIII — Reports and Statistics 

Section 1. Each member shall prepare and file with the Secretary 
of his Division at such times and in such manner as the Code 
Authority may j)rescribe, statistics of plant capacity, volume of pro- 
duction, volume of sales in units and dollars, orders received, unfilled 
orders, stocks on hand, inventory both raw and finished, number of 
ernploj^ees, wage rates, employee earnings, hours of work and matters 
as the Code Authority or the Administrator may from time to time 
require for the purpose of administering or enforcing the provisions 
of this Code. 

Section 2. Except as otherwise provided in the Act or in this 
Code, all statistics, data and information filed in accordance with 
the provisions of Section I of this Article shall be confidential and 
the statistics, data and information of one member shall not be 
revealed to another member. exee]3t for the purpose of administering 
or enforcing the provisions of this Code. Xo such data or informa- 
tion 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 through its Secretary shall 
arrange in such manner as it may determine for the publication cur- 
rently to members of totals of orders received, unfilled orders, ship- 
ments, stocks or unfinished goods on hand and production. 

Section 3. The Code Authority shall make and file with the Ad- 
ministration such reports as the Administrator may from time to 
time require. 

Section 4. In addition to information required to be submitted 
to tlie Code Authority there shall be furnished to Government agen- 
cies such statistical information as the Administrator may deem neces- 
sarv 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 Governmental agency. 

Article IX — Trade Practices 

No member shall : 

(a) Induce or attempt to induce the breacli of a contract betvxcen 
a competitor and his customers. 

(b) Imitate the ^rade marks or the trade names of a competitor. 

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

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

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

(f ) 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 emplo^^ee, agent or representative of another in 
relation to the business of the emjjloyer of such employee, the princi- 



115 

pal of such agent or the represented party, without the knowledge 
of such emploj'er, 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. 

Ap.ticle X — MoxoroLiES 

Sectiox 1. No provision of this Code shall be so applied as to per- 
mit monopolies or monopolistic practice.s, or to eliminate, oppress or 
discriminate against small enterprises. 

Article XI — Recxoimex dations 

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

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

Such recommendations, when approved by the xVdministrator after 
such notice and hearing as he shall ])reseribe, shall have the same 
force and effect as other provisions of this Code. 

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 whicli 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 or Divisional Codes 
as are not required to be included therein by the Act, may, with the 
approval of the Administrator be modified or eliminated as changes 
in circumstances or experience may indicate. 

Section 4. This Code and the Divisional Codes and all the pro- 
visions thereof are expressly made subject to the right of the Presi- 
dent, 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 such Codes or an}' conditions imposed by him 
upon his approval thereof. 

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

Auipi-oved Code No. 382. 
Registry No. 402-02. 



SCHEDIXE A 



Transiiarent Bas and Envelope (plain and processed) Division. 
Transparent Sheet and Roll (processed) Division. 
Cellulose Ribbon (i)lain and processed) r>ivision. 
Transparent Household Rolls (plain and processed) Division. 



SUBORDINATE CODE OF FAIR COMPETITION FOR THE TRANSPAR- 
ENT BAG AND ENVELOPE (PLAIN AND PROCESSED) DIVISION OF 
THE TRANSPARENT MATERIALS CONVERTERS INDUSTRY 

To effectuate the policies of Title I of the National Industrial Recovery Act 
the f'dlowing is hereby established as the Subordinate Code of Fair (^impeti- 
tion of tlie Transparent Bag & Envelope (Plain and Processed) Division of 
the Transparent Materials Converters Industry, asid shall be binding on every 
member thereof. 

Article I — Definitions 

The words used herein are hereby defined as follows : 

" General Code " — The General Code of the Transparent Materials Converters 
Industi'y. 

•' This Division " — The products of the Industry coming within this Division 
shall be transparent bags, envelopes and tubes, plain and processed. 

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

"Code Authority" — Tlie b(;dv created by Section 1. Article II of the General 
Cod(\ 

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

AKTICLE II SUBOKDINATION 

Section 1. Tiiis Code is subordinate to the General Code and is submitted 
pursuant to tl'.e provisions of Article III of the General Code. 

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

Section 3. In the event that any provisiiiu of this Code shall be found to be 
inconsistent witli the provisions of the General Code, the provisions of the 
General Code shall prevail. 

Article III — Aojiinistration 

Section 1. There is hereby created a body to be known a« the " Executive 
Authority" of the Transparent Bag and Envelope (Plain and Processed) Divi- 
sion, which shall consist of the Executive Connnittee of the Transparent Bag 
and Envelope Association, together with such person or persons as may bo desig- 
nated by the Administi'ator pursuant to Section 1 of Article II of the General 
Code. The person or persons so designated by the Administrator shall have no 
vote. 

Section 2. Within ninety (90) days after the effective date hereof the Execu- 
tive Authority shall call a meeting of all members of the Division to x'eview the 
method of selection of the Executive Authority, and shall report to the Admin- 
istrator the proposals made thereat. 

Section 3. The said Association shall file with the Administrator certified 
copies of any amendments of its By-Laws relating to eligibility or admission to 
membership in said Association, or relating to the method of selection of the 
members of said Executive Committee, which said Association may hereafter 
adopt. 

(116) 



117 

Section 4. In order that the Executive 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 Executive 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 Executive Authority. 

)Section 5. Tlie Executive Authority is charged generally with the duty of 
administering this Code. If the Administrator shall determine that any action 
of the Executive 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 Executive 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 6. The Executive Authority shall cooperate with and assist the Code 
Authority in administering the General Code and shall obtain fi-om members 
within this Division such reports, statistics and other data as the Code 
Authority may require. 

Section 7. The Executive 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 i)olicy of the Act or which tend or may 
tend to render ineffective this Code, and to report the same with recommenda- 
tions to the Code Authority. 

Section 8. Subject to the same restrictions and safeguards as provided in 
Article VIII of the General Code, members shall furnish such information and 
statistics as may from time to time be required by the Executive Authority. 

Section 9. The Executive 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 Executive 
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. Nothing contained in this Code shall constitute the members of 
the Executive Authority partners for any purpose ; nor shall any member of 
the Executive Authority be liable in any manner to anyone for any act of 
any other member, oflicer, agent, or employee of the Executive Authority ; nor 
shall any member of the Executive 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. 

Abticle IV — Trade Customs 

Section 1. The Executive Authority shall formulate the recognized Trade 
Customs and Fair Trade Practices of this Division and may from time to time 
submit any such Trade Customs or Fair Trade Practices through the Code 
Authority to the Administrator for approval and the same when approved 
shall have the same force and effect as if incorporated in this Code. 

Article V — Amendments 

Section 1. The provisions of this Gode may with the approval of the 
Administrator be modified or eliminated as changes in circumstances or 
experience may indicate. It Is contemplated that from time to time supple- 
mentary provisions of this Code to prevent unfair competition in price and 
other unfair and destructive competitive practices and to effectuate the other 
provisions and policies of the Act will be submitted for the approval of the 
Administrator. 

AfixacLE VI — Effective Date 

Section 1. 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. 



118 

SUBORDINATE CODE OF FAIR COMPETITION FOR THE TRANSPAR 
ENT SHEET AND ROLL (PROCESSED) DIVISION OF THE TRANS- 
PARENT MATERIALS CONVERTERS INDUSTRY 

To effectuate the policies of Title I of the National Industrial Recovery 
Act the following is hereby established as the Subordinate Code of Fair Com- 
petition of the Transparent Sheet and Roll (Processed) Division of the Trans- 
parent Materials Converters Industry, and shall be binding on every member 
thereof. 

Article I— Definitions 

The words used herein are hereby defined as follows: 

" General Code " — The General Code of the Transparent Materials Converters 
Industry. 

" This Division " — The products of the Industry coming within this Division 
shall be transparent processed sheets and rolls, but not photographic materials. 

" Executive Authority " — The body created by Section 1, Article III hereof. 

" Code Autliority " — The body created by Section 1, Article II of the General 
Code. 

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

Article II — Subordination 

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

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

Section 3. In the event that any provision of this Code shall be found to 
be inconsistent witli the provisions of the General Code, the provisions of the 
General Code shall prevail. 

Article III — Administration 

Section 1. There is hereby created a body to be knoAvn as the " Executive 
Authority" of the Transparent Sheet and Roll (Processed) Division, which 
shall consist of the Executive Committee of the National Converters Institute, 
together witli such person or persons as may be designated by the Administrator 
pursuant to Section 1 of Article II of tlie General Code. The person or persons 
so designated by the Administrator shall have no vote. 

Section 2. Within ninety (90) days after the effective date hereof the Execu- 
tive Authority shall call a meeting of all members of the Division to review 
the method of selection of the Exec-utive Authority, and shall report to the 
Administrator the proposals made thereat. 

Section 3. The said Association shall file with the Administrator certified 
copies of any amendments of its By-Laws relating to eligibility or admission 
to membership in said Association, or relating to the method of selection 
of the members of said Executive Committee, which said Association may 
hereafter adopt. 

Section 4. In order that the Executive 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 Executive 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 Executive Autlioritj'. 

Section 5. The Executive Authority is charged generally with the duty of 
administering this Code. If the Administrator shall determine that any action 
of the Executive 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 Executive Authority or agency 
liending final action which shall not be effective unless the Administrator ap- 
proves 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. 



119 

Section 6. The Executive Authority shall cooperate with and assist the Cofle 
Authority in administering the General Code and shall obtain from members 
within this Division such reports, statistics and other data as the Code Author- 
ity may require. 

Section 7. The Executive Authority shall have power to investigate alleged 
violations of this Code and acts ot 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 Code Authority. 

Section 8. Subject to the same restrictions and safeguards as provided in 
Article VIII of the General Code, members shall furnish such information and 
statistics as may from time to time be required by the Executive Authority. 

Section 9. The Executive 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 Executive 
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. Nothing contained in this Code shall constitute the members of 
the Executive Authority partners for any purjwse ; nor shall any members of 
the Executive Authority be liable in any manner to anyone for any act of any 
other member, officer, agent, or employee of the Executive Authority ; nor shall 
any member of the Executive 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. 

Article IV — Trade Customs 

Section 1. The Executive Authority shall formulate the recognized Trade 
Customs and Fair Trade Practices of this Division and may from time to time 
submit any such Trade Cnstoms or Fair Trade Practices through the Code 
Authority to the Administrator for approval and the same when approved shall 
have the same force and effect as if incorporated in this Code. 

Article V — Amendments 

Section 1. The provisions of this Code may with the approval of the Admin- 
istrator be modified or eliminated as changes in circumstances or experience 
may indicate. It is contemplated that from time to time supplementary pro- 
visions of this Code to prevent unfair competition in price and other unfair and 
destructive competitive practices and to effectuate the other provisions and 
policies of the Act will be submitted for the approval of the Administrator. 

Article VI — Effective Date 

Section 1. This Code shall become effective on the second Monday after the 
date upon which it shall be approved by the President of the United States. 



SUBORDINATE CODE OF FAIR COMPETITION FOR THE CELLULOSE 
RIBBON (PLAIN AND PROCESSED) DIVISION OF THE TRANSPARENT 
MATERIALS CONVERTERS INDUSTRY 

To effectuate the policies of Title I of the National Industrial Recovery Act 
the following is hereby established as the Subordinate Code of Fair Competi- 
tion of the Cellulose Ribbon (Plain and Processed) Division of the Transparent 
Materials Converters Industry, and shall be binding on every member thereof. 

Article I — Definitions 

The words used herein are hereby defined as foUows : 

" General Code " — The General Code of the Transparent Materials Converters 
Industry. 



120 

" This Division " — Tbe products of the Industry comins wltliin this Division 
shall be plain and processed transparent ribbons. 

" Executive Authority " — The body created by Section 1, Article III hereof. 

" Code Authority " — The body created by Section 1, Article II of the General 
Code. 

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

Aeticlb II — Subordination 

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

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

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

Aetiole III — Administration 

Section 1. There is hereby created a body to be known as the " Executive 
Authority " of the Cellulose Ribbon (Plain and Processed) Division, which shall 
consist of the Executive Committee of the Cellulose Ribbon Association, together 
with such person or persons as may be designated by the Administrator pur- 
suant to Section 1, of Article II of the General Code. The person or persons 
so designated by the Administrator shall have no vote. 

Section 2. Within ninety (90) days after the effective date hereof the 
Executive Authority shall call a meeting of all members of the Division to 
review the method of selection of the Executive Authority, and shall report to 
the Administratoi* the proposals made thereat. 

Section 3. The said Association shall file with the Administrator certified 
copies of any amendments of its By-Laws relating to eligibility or admission 
to membership in said Association, or relating to the method of selection of the 
members of said Executive Committee, which said Association may hereafter 
adopt. 

Section 4. In order that the Executive 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 Executive 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 Executive Authority. 

Section 5. The Executive Authority Is charged generally with the duty of 
administering this Code. If the Administrator shall determine that any action 
of the Executive 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 Executive 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 6. The Executive Authority shall cooperate with and assist the 
Code Authority in administering the General Code and shall obtain from 
members within this Division such reports, statistics and other data as the 
Code Authority may require. 

Section 7. The Executive 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 maj^ 
tend to render ineffective this Code, and to report the same with recommenda- 
tions to the Code Authority. 

Section 8. Subject to the same restrictions and safeguards as provided in 
Article VIII of the General Code, members shall furnish such information and 
statistics as may from time to time be required by the Executive Authority. 

Section 9. Tlie Executive Authority shall use such ti'ade associations and 
other agencies as it deems proper for the carrying out of any of its acti\'ities, 
provided for herein, provided that nothing herein shall relieve the Executive 
Authority of its duties or responsibilities under this Code, and that such trade 



121 

associations or agencies shall at all time be subject to and comply with the 
provisions hereof. 

Section 10. Nothing contained in this Code shall constitute the members 
of the Executive Authority partners for any purpose; nor shall any member 
of the Executive Authority be liable in any manner to anyone for any act of 
any other member, officer, agent, or employee of the Executive Authority ; nor 
shall any member of the Executive 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. 

Article IV — Trade Customs 

Section 1. The Executive Authority shall formulate the recognized Trade 
Customs and Fair Trade Practices of this Division and may from time to time 
submit any such Trade Customs or Fair Trade Practices through the Code 
Authority to the Administrator for approval and the same when approved 
shall have the same force and effect as if incorporated in this Code. 

Aetiole V — Amendments 

Section 1. Tlie provisions of this Code may with the approval of the Adminis- 
trator be modified or eliminated as changes in circumstances or experience may 
indicate. It is contemplated that from time to time supplemental^ provisions 
of this Code to prevent unfair competition in price and other unfair and 
destructive competitive practices and to effectuate the other provisions and 
policies of tlie Act will be submitted for the approval of the Administrator. 

Article VI — Effecttve Date 

Section 1. This Code shall become effective on the second Monday after the 
date upon which it shall be approved by the President of the United States. 



SUBORDINATE CODE OF FAIR COMPETITION FOR THE TRANSPARENT 
HOUSEHOLD ROLLS (PLAIN AND PROCESSED) DIVISION OF THE 
TRANSPARENT MATERIALS CONVERTERS INDUSTRY 

To effectuate the policies of Title I of the National Industrial Recovery Act 
the following is hereby established as the Subordinate Code of Fair Competi- 
tion of the Transparent Household Rolls (Plain and Processed) Division of 
the Transparent Materials Converters Industry and shall be binding on every 
member thereof. 

Article I — Definitions 

The words used herein are hereby defined as follows : 

" General Code " — The General Code of the Transparent Materials Converters 
Industry. 

" This Division " — The products of the Industry coming within this Division 
shall be plain and processed cellulose sold in rolls and commonly termed 
household rolls. 

" Executive Authority " — The body created by Section 1, Article III hereof. 

" Code Authority " — ^The body created by Section 1, Article II of the General 
Code. 

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

Article II — Subordination 

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

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

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



122 

Arttcle III — Administration 

Section 1. There is herel)y created a body to be known as the " Executive 
Authority" of the Transparent Househokl Rolls (Phiin and Processed) Divi- 
sion, which shall consist of the Executive Committee of the Transparent 
Household Rolls (Plain and Processed) Association, together with such person 
or persons as may be designated by the Administrator pursuant to Section 1 
of Article II of the General Code. The person or persons so designated by 
the Administrator shall have no vote. 

Section 2. Within ninety (90) days after the effective date hereof the 
Executive Authority shall call a meeting of all members of the Division to 
review the method of selection of the Executive Authority, and shall report 
to the Administrator the proposals made thereat. 

Section 3. The said Association shall file with the Administrator certified 
copies of any amendments of its By-Laws relating to eligibility or admission 
to membership in said Association, or relating to the method of selection of 
the members of said Executive Committee, which said Association may here- 
after adopt. 

Section 4. In order that the Executive 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 Executive 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 Executive Authority. 

Section 5. The Executive Authority is charged generally with the duty 
of administering this Code. If the Administrator shall determine that any 
action of the Executive 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 Executive 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 6. The Executive Authority shall cooperate with and assist the Code 
Authority in administering the General Code and shall obtain from members 
within this Division such reports, statistics and other data as the Code 
Authority may require. 

Section 7. The Executive 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 Code Authority. 

Section 8. Subject to the same restrictions and safeguards as provided in 
Article VIII of the General Code, members shall furnish such information and 
statistics as may from time to time be required by the Executive Authority. 

Section 9. The Executive Authority shall use such trade associations and 
other agiencies as it deems proper for the carrying out of any of its activities, 
provided for herein, provided that nothing herein shall relieve the Executive 
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. Nothing contained in this Code shall constitute the members of 
the Executive Authority partners for any purpose ; nor shall any member of 
the Executive Authority be liable in any manner to anyone for any act of any 
other member, ofiicer, agent, or employee of the Executive Authority ; nor shall 
any member of the Executive Authority, exercising i-easonable 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. 

Abticle IV — Trade Customs 

Section 1. The Executive Authority shall formulate the recognized Trade 
Customs and Fair Trade Practices of this Division and may from time to time 
submit any such Trade Customs or Fair Trade Practices through the Code 
Authority to the Administrator for approval and the same when approved shall 
have the same force and effect as if incorporated in this Code. 



123 

Article V — ^Amendments 

Section 1. The provisions of this Code may with the approval of the Admin- 
istrator be modified or eliminated as changes in circumstances or experience 
may indicate. It is contemplated that from time to time supplementary pro- 
visions of this Code to prevent unfair competition in price and other unfair and 
destructive competitive practices and to elfectuate the other provisions and 
policies of the Act vrill be submitted for the approval of the Administrator. 

Article VI- — Effective Date 

Section 1. This Code shall become effective en the second Monday after the 
date upon which it shall be approved by the President of the United States. 

o 



Approved Code No. 383 

CODE OF FAIR COMPETITION 

FOR THE 

WOOD TURNING AND SHAPING INDUSTRIES 

As Approved on April 4, 1934 



OKDER 



Approving Code of Fair Competition for the Wood Turning 
AND Shaping Industries 

An application having been duly made pursuant to and in full 
compliance -with the provision's of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code 
of Fair Competition for the Wood Turning and Shaping Industries, 
and hearings having been duly held thereon and the annexed report 
on said Code, containing findings with respect thereto, having been, 
made and directed to the President: 

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

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

Division Administrator. 

Washington, D.C, 

April 4, 193Jt. 

(125) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on the Code " of Fair Competition for the 
Wood Turning and Shaping Industries, the hearing being conducted 
in Washington, D.C., on January 16th, 1934, in accordance with the 
provisions of the National Industrial Recovery Act. This Code is 
composed of Part A and Part B. Part A is the basic Code contain- 
ing provisions which have been judged to be relevant to various 
wood turning and shaping industries which are now included or 
might be included later in this Group. Part B is composed of the 
Divisional Codes for the various industries. Many of the members 
of these industries manufacture the products included in more than 
one Division. This fact and the effort to reduce code administration 
expenses to the minimum have been the chief reasons for develop- 
ing the Codes for those industries as a- Group Code. Tlie provisions 
on hours and wages are common to all Divisions and are therefor© 
placed in Part A. 

Provisions on Hours and Wages 

The maximum hours provided in this Code for employees are forty 
(40) hours per week and eight (8) hours per day. When produc- 
tion demands it employees may be permitted to work forty-eight 
(48) hours per week for three (3) weeks in each thirteen (13) con- 
secutive weeks' period but not more than forty (40) hours per week 
averaged over the thirteen weeks' periods. 

Designers, tool builders, executive and supervisory employees 
who regularly receive $35.00 or more per week, and outside sales- 
men are exempted from the hours limitations. Watchmen are per- 
mitted to work fifty-six (56) hours per week. Outside truckmen, 
firemen, engineers, cleaners, foremen, shipping clerks and outside 
crews are permitted a tolerance of 121/2% over the prescribed hours 
in both regular and peak seasons. In cases of emergency repair 
and maintenance work involving breakdowns, or protection of life 
or property employees are exempted from hours limitations and are 
to be paid one and one-third times their normal rate for hours 
worked in excess of eight hours per day or forty hours per week 

The minimum wage rates provided in this Code are as follows: 
Male employees in the north 35 cents per hour, in the south 321^ 
cents per hour, female employees 30 cents in the nortli and 27^/2 
cents in the south. The differential between male and female em- 
ployees, while protected by the provision that female employees 
performing substantially the same work as male employees shall 
receive the same wage, is not economically sound and is justifiable 
only on grounds of long established practice. In actual practice the 
differential has been as great as 100%. By this Code it has been 

(12G) 



127 

reduced to approximately 18% in the hope that the practice will 
shortly disappear altogether. Although the work performed by 
women is lighter than that performed by men it frequently requires 
more skill. Messengers, office boys and office girls, between 16 and 
18 years of age, and learners, for a period not to exceed six weeks, 
may be compensated at not less than 80% of the minimum rate. 
These employees shall not exceed 5% of the total number of the 
employees of any employer. Handicapped persons may be employed 
at less than the minimum wage under the usual prescribed conditions. 
It is provided that there shall be an equitable adjustment of wages 
above the minimum rate. 

Child Labor 

The minimum age provided in this Code is 16 years but in 
hazardous occupations this age limit is increased to 18 years. It is 
provided that the Code Authority shall submit a list of such occu- 
pations to the Administrator within 60 days of the approval of this 
Code. 

Economic Effect of this Code 

VARIETY wood TURNING AND SMALL TURNED WOOD HANDLES DIVISION 

This industry has reabsorbed the unemployment among its workers 
incident to the depression and reports 38% more employees in the 
last half of 1933 than in 1929, and nearly 80% more than employed 
in June, 1933. This increase may be partly attributed to reduction 
in hours per employee since 1929 but chiefly to increased production 
since June, 1933, when the average week was 40.4 hours. 

The minimum wage prescribed in this Code will greatly increase 
the average earnings of employees as compared with the earnings of 
1932 and 1933 and probably will more than restore them to the level 
of 1929. The average weekly earnings for employees in the north 
in June, 1933, were only $12.62 while under the Code the minimum 
will be $14.00 for men and $12.00 for women. The employees of this 
industry are unorganized and the majority of the employees are paid 
at or near the minimum wage rate. 

SPOOL DIVISION 

This industry has absorbed 5% more workers on the forty hour 
week than employed in 1929 on an average 52 hour week, in spite of 
decreased total production. A further 18% increase will occur if 
production equal to that of 1929 is required. The present employ- 
ment is approximately 25% greater than in 1932. 

The reports of this industry come exclusively from the north 
where the large majority of the product is manufactured. The 
southern differential is relatively insignificant in calculating the 
economic effects of the Code. During the period 1929-1933 the 
minimum wage has ranged between 22.5 cents and 26 cents. The 
minimum rate prescribed for the north in this Code is 30 cents 
for the women and 35 cents for the men. Approximately one third 
of the employees are women. Forty per cent of the employees are 
skilled, 35 per cent are semi-skilled, and 25 per cent are unskilled. 



128 

The average wage rate per hour was only 38.5 cents in 1929 and 
36 oents in 1933. The majority of the employees were working at 
lower rates than prescribed as the minimum in the Code. It is 
clear that the prescribed minimum rates will considerably increase 
the pay roll of this industry. 

CLOTHESPIN DIVISION 

This industry employed in the last two quarters of 1933 approxi- 
mately 25 per cent more workers than employed in 1929, though 
nearly 20 per cent less than during the first two quarters of 1933. 
The work week averaged about 54 hours for the first two quarters 
of 1933, but for the last two quarters averaged only slightly over 
3G hours. This indicates that the industry probably worked for 
stock requirements for the first half of the year in order to take 
advantage of prices of raw materials and low labor costs. 

The average wage in the last quarter of 1933 was slightly higher 
than in 1929. The minimum wage rates prescribed in this Code will 
further increase the earnings as approximately 55 per cent of the 
male employees are receiving less than this minimum and all the 
female employees were receiving less than the minimum prescribed 
for them. Fifty-four per cent of the employees are women. Labor 
in this industry is unorganized and the average wages have been 
only slightly higher than the minimum rates. 

CANDY STICK DIVISION 

The number of employees engaged in this industry increased from 
125 in 1929 to 215 in 1933 due partly to increased requirements for 
this product but the major increase occurred in the last quarter 
of 1933 due to compliance with the President's Reemployment 
Agreement and the shortening of the work week. 

The average weekly wage steadily decreased fi'om $18.20 in 1929 
to $14.00 in 1933. The minimum wage varied from 18.3 cents to 25 
cents during that five year period and the large majority of the 
employees are reported as unskilled or semi-skilled. The minimum 
wage prescribed in this Code will substantially increase the wage rate 
of practically all employees. 

FLAT AND SHAPED VENEER PRODUCTS DIVISION 

Employment in this industry decreased from 756 in 1929 to 570 in 
1932. This increased to 729 in the last quarter of 1933 when some 
of the members of the industry complied with the President's Reem- 
ployment Agreement. The average work week in October, 1933, was 
still 63 hours, therefore a substantial increase in employment may be 
expected by the adoption of the forty hour week prescribed by this 
Code. The adoption of a 40 hour week will increase employment 
approximately 50% if production is continued at the present rate 
which is doubtful as those who have not cooperated by complying 
with the President's Reemployment Agreement have probably man- 
ufactured a large supply for stock. The few members who, under 
these conditions, have complied with the President's Reemployment 



129 

Agreement deserve special commendation for their cooperative 
spirit. 

Wage rates have been extremely low in this industry. Labor 
is unorganized and the majority of the workers receive the minimum 
rates. Between 80 and 85 per cent of male employees and approxi- 
mately 93 per cent of the female employees have been receiving less 
than the minimum rates prescribed in tliis Code so that the applica- 
tion of these rates will substantially increase the payrolls of the 
members of this industry. 

TOOTHPICK nmsiON 

Employment in this industry has remained constant at 350 em- 
ployees during the period from 1929 to 1933. The average hours 
per week in 1929 were 51.9 hours and in June, 1933, were 48 hours. 
The average hours per week remained the same in October, 1933. 
If the members of this industry have not manufactured for stock 
so that it will be unnecessary to continue to produce in the same 
quantity, an increase of approximately 20% of the number of em- 
ployees now engaged should be accomplished by the adoption of the 
40 hour maximum week prescribed in this Code. 

The average hourly wage rate in this industry was 40.2 cents in 
1929 and 41.4 cents in 1933. Since labor is unorganized the majority 
of the employees will probably not receive much in excess of the 
prescribed minimum. One of the four members of this industry 
reported a minimum hourly wage rate of 22 cents. From this 
inadequate report it is difficult to estimate what increase in wage 
rates will result but it is believed that some increase will occur. 

SKEWER DIVISION 

The production volume and the number of emploA'ees in this 
industry have been practically constant during the four years 
1929-1932. 

The average week was decreased from 45 hours to 40 by com- 
pliance with the President's Reemployment Agreement and this 
caused an increase in the number of employees from 105 to 121 or 
about 15%. The provisions of this Code will not further increase 
employment unless increased production is required and the number 
of employees is now 5% greater than in 1929. 

The average weekly wage declined from $18.20 in 1929 to $14.00 
in 1933. Under the Code the minimum wage will approximate the 
average wage of 1933 and is from 20% to 40% higher than the 
minimum wage rates reported for 1933. Thus the minimum rates 
prescribed cause a substantial increase in the wages of employees in 
this industry. 

BRUSH HANDLE AND BRUSH BLOCK DIVISION 

The number of employees in this industry during the last half of 
1933 was approximately 5% more than in 1929. During the second 
quarter of 1933 there was a great increase in the number of em- 
ployees which may have been inspired by the desire to manufacture 



130 

for stock to take advantage of long hours and low wages that pre- 
vailed at that time. During the first six months of 1933 the average 
work w^eek was 54.2 hours and during the la^t quarter of 1933 fewer 
workers were employed and the average week was reduced to 3G,8 
hours. No increase in employment will be effected by the hours 
prescribed in this Code. 

The wage rates of this industry have been very low, practically all 
emploj^ees receiving less than the minimum rates prescribed in thi^ 
Code. The average earnings of employees during the second quar- 
ter of 1933 will be more than doubled by the wage provisions of this 
Code. 

Findings 

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

I find that : 

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

(b) Said industries normally employ not more than 50,000 em- 
ployees; and are not classified by me as major industries. 

(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 
Subsectioti (b) of Section 10 thereof; and that the applicant associa- 
tions are industrial associations truly representative of the aforesaid 
industries; and that said associations impose no inequitable restric- 
tions on admission to membership therein. 

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

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

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

For these reasons, tlierefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Adminwtrator. 
Ai'RiL 4, 1934. 



CODE OF FAIR COMPETITION FOE THE WOOD TURNING 
AND SHAPING INDUSTRIES 

PART A— MASTER CODE 

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 Wood Turning and Shaping Industries as hereinafter defined, 
and its provisions shall be the standards of fair competition for such 
industries and shall be binding upon every member thereof. 

Article II — Definitions 

Section 1. Wood Turiiing and Shaping Industries. — The term 
" Wood Turning and Shaping Industries " as used herein shall mean 
the manufacture for primary distribution of turned and shaped wood 
products as hereinafter defined in Part B of this Code for the 
respective Divisions or Subdivisions, established pursuant to the 
provisions of Article VII hereof. 

Section 2. Division and Subdivision. — The Term " Division " or 
" Subdivision " of the industry as used herein shall mean the several 
branches of the industry which are herein or may hereafter be 
established. The Divisions or Subdivisions immediately established 
and defined in Part B of this Code are : 

1. The Variety Wood Turning and Small Turned Wood Handles 
Division. 

2. The Spool Division. 

3. Clothespin Division. 

4. The Candy Stick Division. 

5. The Flat Veneer Products Division. 

6. Toothpick Division. 

7. The SKewer Division. 

8. The Brush Handle and Brush Block Division. 

Section 3. Memhers of the Industry. — The term " member of the 
industry " includes, but without limitation, any individual or enter- 
prise engaged in the industries, either as an employer or on his or its 
own behalf. 

Section 4. Menrt^yer of Division or Subdivision. — The term " mem- 
ber of the Division " or " member of the Subdivision " shall mean any 
mernber of the industry as classified in any division or subdivision of 
the industry now or hereafter established and defined in Part B of 
this Code. 

Section 5. Administrative Agency. — The terms "Administrative 
Agency " or "Administrative Agencies " shall mean the Divisional or 
Subdi visional Administrative Agency or Agencies (as defined in 

51724° 482^5 34 2 (I3I) 



132 

Part A, Article VII, Section 3, and in the various units of Part B 
of this Code) , of any Division or Subdivision of these Industries, now 
or hereafter established. 

Section 6. Etn'ployee. — The term " employee " as used herein in- 
cludes any and all persons engaged in the industry, except a " member 
of the Industry," however compensated. 

Section 7. Employer. — The term " employer " as used herein in- 
cludes any member of the industry by whom such employee is com- 
pensated or employed. 

Section 8. The term " South " as used herein, shall include the 
States of North Carolina, South Carolina, Tennessee, Mississippi, 
Louisiana, Arkansas, Florida, Georgia, Virginia, Alabama and Texas. 

Section 9. The term " North " as used herein, shall include the Dis- 
trict of Columbia and all States of Continental United States not 
included in the South as defined in Section 8. 

Section 10. Act and Adminutrator. — The terms "Act " and " Ad- 
ministrator " as used herein shall mean, respectively. 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 
eight (8) hours in any twenty-four (24) hour period or forty (40) 
hours in any one week, except as hereinafter otherwise provided. 

Section 2. The maximum hours prescribed in Section 1 of this 
Article shall not apply to employees engaged exclusively as design- 
ers, tool builders or as executive or supervisory employees, who regu- 
larly receive thirty-five (35) dollars or more per week, nor to outside 
salesmen. 

Section 3. Watchmen. — The maximum hours prescribed in Sec- 
tion 1 of this Article shall not apply to watchmen, provided, however, 
that watchmen shall not be permitted to work in excess of fifty-six 
(56) hours in any one week. 

Section 4. Outside truckmen, firemen, engineers, cleaners, fore- 
men, shipping clerks, and outside crews, may be permitted to work a 
tolerance of 121/2 % over the hours prescribed in Section 1 of this 
Article, and during peak seasons they may be permitted to work a 
tolerance of 121^% over the hours permitted in Section 6. 

Section 5. Emergencies. — The maximum hours prescribed in Sec- 
tion 1 of this Article shall not apply to employees engaged in emer- 
gency maintenance or emergency repair work involving breakdowns 
or protection of life or property, provided, however, that in any 
such special cases employees shall be paid at not less than one and 
one third times their normal rate of pay for all hours worked in 
excess of eight (8) hours in any one day or forty (40) hours in any 
one week. 

Section 6. Peak Seasonf^. — The maximum hours prescribed in Sec- 
tion 1 of this Article shall not apply in cases of seasonal or peak 
operations, provided, however, that any employee engaged in such 
operations may not be permitted to work in excess of forty-eight 
(48) hours in any one week, nor permitted to work such forty -eight 
(48) hours per week for more than three (3) weeks in each thir- 
teen (13) consecutive weeks period, nor permitted to work in excess 



133 

of forty (40) hours per week averaged over each thirteen (13) con- 
secutive weeks period specified by the appropriate Divisional or 
Subdivisional Agency. 

Section 7. Dual Employment. — No employer shall knowingly en- 
gage any employee for any time which, when totaled with that 
already performed with another employer or employers, exceeds the 
maximum hours prescribed in this Article. 

Article IV — Wages 

Section 1. Minimum Wage Rates. — No male employee, shall be 
paid at less than the rate of thirty-two and one half (321/2) cents 
per hour in the South, nor less than thirty-five (35) cents per hour 
in the North, and no female emploj'^ee, shall be paid at less than the 
rate of twenty-seven and one half (27i/^) cents per hour in the South, 
nor less than thirty (30) cents per hour in the North, except a3 
hereinafter otherwise provided in this Article. 

Section 2. Piecework and Minimum Wage. — This Article estab- 
lishes 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 3. Payment of Wages. — ^An employer shall make pay- 
ment of all wages due in lawful currency, or by negotiable check 
therefor payable on demand. These wages shall be exempt from 
any payments for premiums, insurance, or sick benefits other than 
those voluntarily paid by the wage earners, or required by law. All 
employment agreements shall require that wages be paid at least at 
the end of every two weeks' period, salaries at least at the end of 
every month, and that no employer shall withhold wages due any 
employee. 

Section 4. Messengers., 0-fjice Boys., Office Girls and Learners. — 
Messengers and office boys and office girls between the ages of six- 
teen (16) and eighteen (18) years and persons learning an occupa- 
tion shall be paid not less than eighty percent of the minimum wage, 
provided that the number of such employees shall not exceed five 
percent of the total number of employees of any one emploj'er at 
any one time, and that the learners shall not be compensated at less 
than the minimum rate for a period in excess of six (6) weeks, irre- 
spective of whether they are employed by one or more employers. 

Section 5. Adjusttnent of Wages. — There shall be an equitable 
adjustment of all wages above the minimum prescribed in this article 
and within sixty (60) days from the effective date of this Code all 
such adjustments made since June 16, 1933, shall be reported to the 
Code Authority and to the Administrator. In no case shall hourly 
rates be reduced. 

Section 6. Female Employees. — Female employees performing 
substantially the same work as male employees shall receive the same 
rates of pay. 

Section 7. Handicapped Employees. — 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, designated by the United States Department of 



134 

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. 

Article V — General, Labor Pro\isions 

Section 1. Child Lahoi' Prohibited. — No person under 16 years of 
age shall be employed in the Industry. No person under 18 years 
of age shall be employed at operations or occupations which are 
hazardous in nature or dangerous to health. The Code Authority 
shall submit to the Administrator within sixty (60) days after the 
approval of this Code a list of such operations or occupations. In 
any State an emploj'er shall be deemed to have complied with this 
provision as to age if lie shall have on file a certificate or permit duly 
issued by the Authority in such State, empowered to issue employ- 
ment or age certificates or permits showing that the employee is of 
the required age. 

Section 2. Employees Right to Organize. — (a) Employees shall 
have the right to organize and bargain collectively, through repre- 
sentatives of their own choosing, and shall be free from the inter- 
ference, 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. 

Section 3. State Laws Prevail Where More Stringent than Code. — 
No provisions in this Code shall supersede any State or Federal law 
which imposes more stringent requirements on employers as to age of 
employees, wages, hours of work, or as to safety, health, sanitary 
or general working conditions, or insurance, or nre protection than 
are imposed by this Code. 

Section 4. Posting Code. — ^All employers shall post and there- 
after maintain complete copies of the labor provisions of this Code 
in conspicuous places accessible to employees. 

Section 5. Reclassifying Employees. — No employer shall reclassify 
emploj^ees or duties of occupations performed, or engage in any 
other subterfuge for the purpose of defeating the purposes or pro- 
visions of the Act or of this Code. 

Section 6. Safety and Health. — Every employer shall make reason- 
able provision for the safety and health of his employees at the place 
and during the hours of their employment. Within sixty (60) days 
after the a23proval of any divisional unit of this Code the Adxainis- 



135 

trative Agency established thereby shall submit reasonable standards 
for safety and health to the Administrator for his approval. There- 
after each employer shall comply with such standards. 

Article VI — Organization, Powers, a>;d Duties of the Code 

Authority 

Section 1. Code Authority. — A Code Authority, is hereby con- 
stituted to cooperate with the Administrator in the administration 
of this Code. 

Section 2. How Com'posed. — The Code Authority shall consist of 
the chairmen of the Divisional Administrative Agencies, hereinafter 
referred to as the Agency or Agencies; and in addition thereto the 
Administrator, in his discretion, may appoint from one to three 
nonvoting members to represent the Administrator or such groups 
as he may designate. The representatives who may be appointed 
by the Administrator shall serve without expense to the Industry, 
and together with the Administrator shall be given notice of and may 
attend all meetings of the Code Authority. 

Section 3. Provisions for Alternates. — One alternate may be se- 
lected by each Divisional Agency to represent the Chairman of that 
Division on the Code Authority in his absence. Should any matter 
come before the Code Authority which specifically involves acts, 
conduct, or the interests of a company with which any member oi 
the Code Authority is associated or employed, such member shall 
be disqualified to act in such manner and an alternate designated by 
the Divisional Agency may act in such disqualified member's place. 

Section 4. Trade Association Regulations. — Each trade or indus- 
trial association directly or indirectly participating in the selection 
or activities of the Code Authority, or any Divisional or Subdivi- 
sional Agency, shall: (1) Impose no inequitable restrictions on 
membership, and (2) Submit to the Administrator true copies of the 
Articles of Association and By-laws, regulations, and any amend- 
ments when made thereto, together with such other information as 
to membership, organization and activities as the Administrator may 
deem necessary to effect the purposes of the Act. 

Section 5. Code Authority and Agencies Must be Representa- 
tive. — In order that the Code Authority or any Divisional or Subdi- 
visional Agency shall at all times be truly representative of the 
Industry, or any Division or Subdivision thereof, 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 Divisional or Sub- 
divisional Agency 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 the selection of the Code 
Authority or any Divisional or Subdivisional Agency. 

Section 6. Expenses of Code Authority and Agencies. — Members 
of the industries shall be entitled to participate in and share the 
benefits of the activities of the Code Authority and of their respec- 
tive Divisional or Subdivisional Agency and to participate in the 
selection of the members thereof as prescribed by assenting to and 



136 

complying with the requirements of this Code and sustaining their 
reasonable share of the expenses of its administration. The reason- 
able share of the expenses shall be determined by the Code Authority. 
BubJGct to review by the Administrator, on the basis of volume oi 
business and/or such other factors as may be deemed equitable. 

Section 7. Memhers of tlie Code Authority or Agencies not Part- 
ners. — Nothing contained in this Code shall constitute the members 
of the Code Authority, or of any Divisional or Subdivisional Agency 
partners for any purpose; nor shall any member of the Code Au- 
thority or any Divisional or Subdivisional Agency be liable in any 
manner to anyone for an act of any other member, officer, agent, 
or employee of the Code Authority, or any Divisional or Subdi- 
visional Agency; nor shall a member of the Code Authority or Di- 
visional or Subdivisional Agency who is exercising reasonable dili- 
gence in the pursuance of his duties hereunder, be liable to anyone 
for any action or omission to act under the Code, except for his 
wilful misfeasance or nonfeasance. 

Section 8. Powers and Duties of the Code Authority. — The Code 
Authority shall have the following powers and duties to the extent 
permitted by the Act, subject to the right of the Administrator, on 
review, to disapprove any action taken by the Code Authority. 

(a) To adopt by-laws and rules and regulations for its procedure 
and for the administration of the Code, in accordance with the 
powers herein granted, and the same to be subject to the disapproval 
of the Administrator on review, and to submit copies of any amend- 
ments or additions when made thereto, minutes of all meetings, and 
6uch other information as to its activities as the Administrator may 
deem necessary to effect the purposes of the Act. 

(b) To coordinate the administration of this Code throughout 
the several Divisions and Subdivisions of the Industry, and with 
Buch other related Codes, if any, as may affect this industry or any 
Divisions or Subdivisions thereof. 

(c) To present to the Administrator, either on its own initiative 
or at the request of Divisional or Subdivisional Agencies, or of an 
interested party, recommendations based on conditions in the Indus- 
try as they may develop from time to time, for modification of or 
additions to the provisions of the Code. When any Divisional or 
Subdivisional Agency or an interested party presents proposals for 
amendments to tlie Code, the Code Authority shall present such pro- 
posals to the Administrator, together with its recommendations for 
approval or disapproval. Upon approval by the Administrator, 
after such notice and hearings as he may prescribe, such recom- 
mendations shall become integral parts of this Code. 

(d) Unless and until the Administrator shall act pursuant to the 
provisions of Section 5 of this Article, the Code Authority shall 
maintain the representative character of any Divisional or Sub- 
divisional Agency. 

(e) The Code Authority may appoint such committees or agents 
as it may deem necessary and may delegate to them or to any Divi- 
sional or Subdivisional Agency such of its powers or duties as it 
may deem proper for the administration of this Code; provided, 
however, that it shall reserve final responsibility as to any powers or 
duties so deleerated. 



137 

(f) The Code Authority may obtain from members of the Industry 
such sworn or unsworn reports as the Code Authority may require 
for the administration of this Code. All individual reports sub- 
mitted to the Code Authority shall be kept confidential and only 
general summaries thereof may be published, provided however that 
any individual reports may be published with the w^ritten consent 
of anyone submitting such reports, and provided further that any 
such reports shall l^ made available to the Administrator upon 
request. The Code Authority shall make such reports to the 
Administrator as he may direct. 

(g) In addition to information required to be submitted to the 
Code Authority, members of the Industry shall furnish such statis- 
tical 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 ; no provision of 
this Code shall relieve any member of the Industry of any existing 
obligation to furnish reports to Government agencies. 

Section 9. 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 
proceed with such action in its original or modified form. 

Section 10. Incorporation of the Code Authority. — The Code 
Authority may incorporate as a nonprofit corporation. 

Article VII — Divisions and Subdivisions 

Section 1. Provisions of Divisional Units — Part of this Code. — 
In addition to Part A of this Code, provisions affecting or pertaining 
to the respective Divisions or Subdivisions of the Industries now or 
hereafter included in Part B hereof, are hereby specificalW made 
a part of this Code. 

Section 2. Additional Divisions or Subdivisions. — (a) Additional 
Divisions or Subdivisions may be added to Part B of this Code 
upon recommendation of the Code Authority and the approval 
of the Administrator or when in the judgment of the Administrator, 
after conference with the Code Authority, the applicant Division 
or Subdivision properly qualifies for inclusion as a Division or Sub- 
division under this Code. Upon approval by the Administrator, 
provisions relating to additional Divisions or Subdivisions of this 
Code shall become integral parts of this Code. 

Section 3. Divisional and SuT) divisional Agencies. — (a) Adminis- 
trative Agencies, to be selected by the members of the respective 
Divisions and Subdivisions in the manner prescribed in each unit 
of Part hereof shall be established, to cooperate, under the super- 
vision of the Code Authority in the Administration of this Code. 

(b) Each Division or Subdivision may designate one alternate for 
each member of the Divisional or Subdivisional Agency, to be 
selected in the same manner as members of such Agencies are 
selected. 



138 

(c) The Divisional or Subdivisional Agencies shall cooperate with 
the Code Authority in making investigations as to the functioning 
and observance of any provisions of this Code, at their own instance, 
at the request of the Administrator or of the Code Authority or on 
complaint of any person affected, and report in duplicate their 
findings and recommendations to the Code Authority. One copy 
thereof shall be transmitted promptly to the Administrator and 
shall be subject to his disapproval on review. 

(d) Divisional or Subdivisional Agencies may make such rules 
and regulations as may be necessary to administer this Code in their 
respective Divisions and Subdivisions. Any rules and regulations 
made pursuant to the provisions of this section shall be immediately 
submitted in duplicate to the Code Authority. One copy thereof 
shall be transmitted promptly to the Administrator and shall be 
subject to his disapproval on review. 

(e) A Divisional or Subdivisional Agency may, upon its own initi- 
ative, or upon the request of any interested party, obtain from any 
member of its Division or Subdivision such reports or other data as 
may from time to time be deemed necessary for the proper adminis- 
tration of this Code in its Division or Subdivision. 

Article VIII — Accounting and Costing 

Section 1. Tlnifomn Cost Finding and/or Estimating. — The Code 
Authority shall cause to be formulated by each Divisional Agency 
an accounting system and methods of cost finding and/or estimating 
capable of use loy 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. 

Section 2. Selling below Allowable Cost. — The Code Authority 
shall cause to be formulated by each Divisional Agency a cost inclu- 
sion formula which shall specify the items of cost which shall be 
included in allowable costs for the production of those products 
which are subject to the Code of such Division. Such cost inclusion 
formula shall be submitted to the Administrator for his approval. 
After the approval of this formula by the Administrator no member 
of the Industry shall sell or exchange any product of the industry 
manufactured by him at a price or upon terms and conditions which 
will result in the purchaser paying for the goods received less than 
the allowable cost thereof to the seller determined in accordance with 
such approved cost formula; 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 mem- 
ber of the Industry, not less than two weeks before such disposal, 
has filed with the Divisional Agency a statement in writing setting 
forth the facts of, and reasons for, such proposed disposal; and 
provided further, that a member of the Industry selling, or wishing 
to soil, below his own allowable cost to meet the competition of a com- 
petitor whose allowable costs are lower, or to meet competition from 
products of equivalent design, character, quality, or specifications. 



139 

manufactured outside the United States, may do so provided that he 
has first reported to the Divisional Agency and in such report has 
cited the competition which caused him to take such action. 

Article IX — Open Prices 

Section. 1. Method. — Each member of any Division or Subdivision 
of the Industry shall file with his appropriate Divisional or Subdi- 
visional agency, within 60 days after the approval of this Code, a 
price list, individually prepared by him, of all products of the In- 
dustry sold or offered for sale by him, and all terms and conditions 
of sale relating thereto. Such price list and terms and conditions of 
sale so filed with any Divisional or Subdivisional Agency 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 appropriate Divisional 
or Subdivisional agency by any member of the Division or Subdi- 
vision, provided, however, that such revisions shall be filed with the 
Agency by registered mail or by telegraph and confirmed by the 
member the same day by registered mail and shall become effective 
immediately upon telegraphic acknowledgment to be made by the 
Divisional or Subdivisional Agency the same day such revision is 
received. Each Divisional and Subdivisional Agency shall furnish 
copies of any price lists, terms, or conditions of sale filed with it 
pursuant to this section to any member of that Division or Subdi- 
vision upon payment of such fees as the Agency may designate, such 
fees not to exceed the actual cost of such service rendered. 

Section 2. SeJlmg at other than Listed Prices. — No member of any 
Division or Subdivision shall sell or offer for sale any product of the 
Industry at prices other than the prices noted in his price list or on 
terms and conditions of sale other than the terms and conditions of 
sale previously filed by such member with his appropriate Divisional 
or Subdivisional Agenc}^ in accordance with the provisions of Section 
I of this Article, and in effect at the time of such sale. 

Article X — Trade Practices 

Rule X. 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, or in any way misrepresents any commodity (including 
its use, trade mark^ grade, quality, quantity, origin, size, material 
content, or preparation) or credit terms, values, policies, services, or 
the nature or form of the business conducted. 

RtnLE 2. " Bait " Advertising. — No member of the Industry shall 
knowingly use advertising or selling methods or credit terms which 
tend to deceive or mislead the customer or prospective customer. 

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

Rule 4. In<wcy!rate Labelling or Representation. — No member of 
the Industry shall brand, mark, or pack any commodity in any man- 
ner which tends to deceive or mislead purchasers or otherwise 



140 

misrepresent any product of the Industry with respect to the brand, 
grade, quality, quantity, origin, size, material content, or preparation 
of such commodity. 

Rule 5. Inaccurate Reference to Competitors. — No member of the 
Industry shall publish advertising which intentionally refers inac- 
curately in any material particular to any competitors or their 
commodities, prices, values, credit terms, policies, or services. 

Rule 6. Threats of Laimtoits. — No member of the Industry shall 
publish or circularize unjustified or unwarranted threats of legal 
proceedings which tend to or have the effect of harassing competitors 
or intimidating their customers, and failure to prosecute diligently 
shall be evidence of such harassment or intimidation. 

Rule 7. Secret Rehates. — No member of the Industry shall secretly 
offer or make any payment or allowance of a rebate, refund, com- 
mission, credit, unearned discount, or excess allowance, whether in 
the form of money or otherwise, for the purpose of influencing a 
sale, nor shall a member secretly extend to any customer any special 
service or privilege not extended to all customers of the same class. 

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 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 advertismg 
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. Sales as Prices Previously Listed. — No member of the 
Industry shall issue an invoice based upon a published price list in 
effect prior to such invoice, but not in effect at time of shipment, 
unless such invoice definitely specifies date of order, quantity sold, 
and balance due on such order. 

Article XI — Appeals 

Section 1. Right of Appeal to Divisions and Siibdivisions. — ^Any 
interested party shall have the right of complaint to any Divisional 
or Subdivisional Agency and prompt hearing and decision thereon 
with respect to any matter arising under this Code and under such 
rules and regulations as the Agency may jDrescribe. 

Section 2. Method of Appeal to Code Authority. — Any interested 
party shall have the right to appeal to the Code Authority from 
any such decision or action of the Agency under such procedure as the 
Code Authority shall prescribe. 

Section 3. Right of Complaint to Code Authority. — Any inter- 
ested party shall have the right of complaint to the Code Authority 
and prompt hearing and decision thereon under such procedure as it 



141 

shall prescribe in respect to any rule, regulation, order, or finding 
made or course of action pursued by the Code Authority. 

Section 4. Right of Appeal to Adtninistrator. — Any interested 
party shall have the right of appeal to the Administrator under 
such procedure as he shall prescribe in respect to any decision, rule, 
regulation, order, or finding made or course of action pursued by any 
agency pursuant to this Code. 

Article XII — Monopolies 

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

Article XIII — Modifications 

Section 1. President May Modify His Approval of This Code. — • 
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. AviendTnent of Code. — This Code, except as to provi- 
sions 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 eflfective upon approval of the President, 

Article XIV — Effecti\t: Date 

This Code shall become effective on the second Monday after jit 
shall have been approved by the President. 

Approved Code No. 383. 
Registry No. 330-02. 



PART B— DIVISIONAL CODES 

Unit No. Name of Division 

1. Variety Wood Turning and Small Turned Wood Handles. 

2. Spool. 

3. Clothespin. 

4. Candy Stick. 

5. Flat and Shaped Veneer Products. 

6. Toothpick. 

7. Skewer. 

8. Brush Handle and Brush Block. 

THE VARIETY WOOD TURNING AND SMALL TURNED WOOD HANDLES 
DIVISION, UNIT NO. 1 

Arttole a — Definitions 

Section 1. The Variety Wood Turning and Small Turned Wood 
Handles Division consiste of all manufacturers and/or finishers of 
turned wood products described in Section 2 hereof; excepting how- 
ever, manufacturers of assembled articles such as furniture, toys 
and various appliances, who produce wood parts exclusively for 
their own use in the assembly or processing of their product. 

Section 2. The term " Variety Wood Turning and Small Turned 
Wood Handles " as used in this Divisional Unit shall mean all wood 
handles both finished and unfinished, not over twenty-four (24) 
inches in length, manufactured on turning lathes of all types in 
which the cutting tools are mechanically operated; and all other 
w^ood products not over forty-eight (48) inches in length manu- 
factured as specified above, excepting, however, all hickory handles 
and ash handles, and those products which are defined and the 
manufacture thereof governed by the provisions of any other Code 
of Fair Competition or of any other division or subdivision of this 
Code. 

Article B — ^Divisional Administrative Agency 

Section 1. Within twenty (20) days after the effective date of 
this Code the Secretary of the Wood Turners Service Bureau shall 
call a meeting of all Members of this Division for the purpose of 
electing the Administrative Agency of said Division. Due notice of 
this meeting shall be sent to every Member of the Division in writing 
or by such other method as will insure all interested parties being 
informed of such meeting and its purpose. 

Section 2. The Administrative Agency of this Division shall 
consist of a Board of not more than seven (7) Members, who shall 
serve for one year or until their successors are elected, and shall 
be elected by the following method : 

(a) At least one Member of the Administrative Agency shall be 
a Member of the Industry who is not a Member of the Wood Turners 

(142) 



143 

Service Bureau, if there be any such, and shall be elected by a major, 
ity vote of all non-members of the said Bureau present in person, or 
voting by letter or by proxy, each non-member to have one vote. 

(b) Five (5) members shall be elected by a majority vote of all 
Members of the Industry, who are Members of said Bureau, present 
in person, by letter, or by proxy, each member to have one vote. 
Of these five, three shall represent the Eastern Members (Eastern 
members includes those located in the New England states, New 
York, New Jersey, and Pennsylvania) ; two shall represent members 
located East andSouth of the states of Pennsylvania and New York. 

(c) One member shall be elected by the members of the Chicago 
Woodworkers Association. 

(d) Any vacancy in the membership of the AdministratiA^e Agency 
may be filled from the appropriate groups by a majority vote of the 
remaining members of the Administrative Agency, provided, how- 
ever, that there shall always be a member of the Administrative 
Agency who is not a member of the said Bureau or Association if 
there be any such. 

(e) In addition to the members elect<?d by the industry, the Ad- 
ministrator, in his discretion, may appoint one to three non-voting 
members to represent the Administrator. 

Article C — Terms of Payment 

The terms of payment for this Division shall not be more favor- 
able than a cash discount of three (3) per cent for payment in ad- 
vance of shipment; two (2) per cent for payment within ten (10) 
days ofter shipment; one (1) per cent for payment on or before the 
tenth of any month for shipments of the previous month ; net thirty 
days e.o.m. ; all cash discounts shall be figured on the net amount 
after deducting sales and/or excise taxes and all claims and allow- 
ances for defective or rejected goods. 

ARTiciiE D — Trade Practic es 

The following shall be Trade Practice Rules for this Division in 
addition to those set forth in Article X of Part A of this Code : 

Rule 1. No member of this Division shall make any contract of 
sale which does not definitely specify quantity, price, and final date 
of shipment. 

Rule 2. No member of this Division shall issue any invoice to a 
purchaser which does not show the terms of payment and actual 
date of shipment. 

Rule 3. No member of this Division shall make separate charges 
for containers, such a^ bags, barrels, boxes, or cartons. 

Article E — Exceptions or Additions to Part A 

(1) Article IX shall not be operative in this Division. 



144 

THE SPOOL DIVISION, UNIT NO. 2 
Article A — Definitions 

Section 1. The Spool Division shall consist of all members of the 
Industry engaged in the manufacturing and/or finishing of all wood 
turned products described in Section 2 hereof. 

Section 2. The term " Spool " as used in this Divisional Unit 
shall mean spools, both finished and unfinished, for whatever pur- 
pose used, made from wood of any kind whatsoever, which are 
turned on centers, and which do not exceed three (3) inches in 
diameter and/or four (4) inches in over-all length, except spools 
used in textile mills for mill processes which do not contain the 
product wound thereon when sold or offered for sale. 

Article B — Divisional Administrative Agency 

Section 1. Within twenty (20) days after the effective date of 
this Code the Secretary of the Wood Turners Service Bureau shall 
call a meeting of all Members of the Spool Division for the purpose 
of electing the Administrative Agency of said Division. Due notice 
of this meeting shall be sent to every member of the Division in 
writing or by such other methods as will insure all interested parties 
being informed of such meeting and its purpose. 

Section 2. The Administrative Agency of this Division shall con- 
sist of a Board of not more than five (5) Members, who shall serve 
for one year or until their successors are elected and shall be elected 
by the following method : 

(a) At least one Member of the Administrative Agency shall be 
a Member of the Industry who is not a Member of the Wood 
Turners Service Bureau, if there be any such, and shall be elected 
by a majority vote of all members of this Division who are non- 
members of the Bureau present in person, or voting by letter or by 
proxy, each non-member to have one vote. 

(b) The remaining Members shall be elected by a majority vote 
of all members of this Division who are Members of said Wood 
Turners Service Bureau present in person, or voting by letter or 
by proxy, each Member having one vote. 

(c) A vacancy in the membership of the Administrative Agency 
may be filled by a majority vote of the remaining Members of the 
Administrative Agency, providedj however, that there shall always 
be a Member of the Administrative Agency who is not a Member 
of the said Bureau, if there be any such. 

(d) In addition to the Members elected by the Industry, the Ad- 
ministrator, in his discretion, may appoint one to three non-voting 
members to represent the Administrator. 

Article C — Terms or Pattment 

Section 1. The terms of payment for this Division shall not be 
more favorable than a cash discount of 3% for payment in advance 
of shipment; 2% for payment within ten days after shipment; 1% 
for payment on or before the 10th of any month for shipments of 



145 

the previous month; net 30 days e.o.m. ; all cash discounts shall be 
figured on the net amount after deducting sales and/or excise taxes 
and all claims and allowances for defective or rejected goods. 

Article D — Trade Practices 

The following shall be Trade Practice Eules for this Division in 
addition to those set forth in Article X of Part A of this Code : 

Rule 1. No member of this Division shall make any contracts 
of sale which do not definitely specify quantity, price, and final date 
of shipment. 

Rdx-e 2. No member of this Division shall issue any invoice to 
any purchaser which does not show the terms of payment and actual 
date of shipment. 

Rule 3. No member of this Division shall make separate charges 
for containers such as bags, barrels, boxes, or cartons. 

Article E — Exceptions or Additions to Part A 

Article IX shall not be operative in this Division. 

CLOTHESPIN DIVISION, UNIT NO. 3 

Article A — Definitions 

Section 1. The Clothespin Division shall consist of all members 
of the Industry engaged in the manufacture of the products defined 
in Section 2 of this Article. 

Section 2. The term " Clothespins " as used in this Division shall 
mean standard clothespins which are made entirely of wood or wood 
with a wire band, spring clothespins which are made of wood with a 
wire spring, and all other clothespins manufactured, whether desig- 
nated by these terms or other terms. 

Section 3. The term " broker " for the purpose of this Division 
shall mean one who sells for a manufacturer, in the manufacturer's 
name, for the manufacturer's account, at prices and on terms and 
conditions named by the manufacturer, who carries no stock and 
whose compensation is in the form of a brokerage for his services. 

Section 4. The term " jobber " for the purpose of this Division 
shall mean a wholesaler who buys from a manufacturer or his broker 
at the prices and on the terms and conditions named by the manu- 
facturer and who resells primarily to the retail trade. 

Article B — Divisional Administrative Agency 

Section 1. Within twenty (20) days after the effective date of 
this Code the Secretary of the Clothespin Institute shall call a meet- 
ing of all Members of the Clothespin Division. Due notice of this 
meeting shall be sent to every Member of the Division in writing or 
by such other methods as will insure all interested parties being 
informed of such meeting and its purpose. 

Section 2. The Administrative Agency of this Division shall con- 
sist of a Board of not more than five (5) Members, who shall serve 



146 

for one year or until their successors are elected and shall be elected 
by the following method : 

(a) At least one Member of the Administrative Agency shall be 
a Member of the Industry who is not a Member of the Clothespin 
Institute, if there be any such, and shall be elected by a majority 
vote of all non-members of the Clothespin Institute present in person, 
or voting by letter or by proxy, each non-member to have one vote. 

(b) The remaining members shall be elected by a majority vote 
of all members of said Clothespin Institute present in person, or 
voting by letter, or by proxy, each member to have one vote. 

(c) A vacancy in the membership of the Administrative Agency 
may be filled by a majority vote of the remaining Members of the 
Administrative Agency, provided, however, that there shall always 
be a member of the Administrative Agency who is not a member of 
the said Institute, if there be any such. 

(d) In addition to the members elected by the Industry, the 
Administrator, in his discretion^ may appoint one to three non-voting 
members to represent the Administrator. 

Article C — Terms of Payment 

The terms of payment for this Division shall not exceed two (2) 
percent thirty (30) days from date of shipment, or two (2) percent 
for payment by a specified date not later than the fifteenth of the 
month following shipment, net thirty-one (31) days E.O.M. 

Article D — Trade Practices 

The following shall be Trade Practice Rules for this Division in 
addition to those set forth in Article X of Part A of this Code : 

Rule 1. No member of this Division shall guarantee prices and 
floor stocks against decline in prices. 

Rule 2. No member of this Division shall permit the storing of 
goods with customers. 

Rule 3. No member of this Division shall make any contracts of 
sale which do not definitely specify price, terms, quantity, and final 
date of shipment. 

Rule 4. No member of the Industry shall ship goods on consi^- 
ment except under circumstances to be defined by the Administrative 
Agency, where peculiar circumstances of the Industry require the 
practice. 

Rule 5. No member of this Division shall permit brokers or 
salesmen on commission to split or divide commissions with cus- 
tomers. 

Rule 6. No member of this Division shall discriminate as to price, 
terms and/or conditions of sale for a like quantity or quality between 
customers of the same class, and in the same competitive territory. 

Rule 7. No member of the Industry shall give any brokerage or 
other commission to one to whom he sells as a jobber. 

Rule 8. Each member of this Division shall file with the office of 
the Clothespin Institute, a complete list of his authorized agents. 
The name of each new agent shall be filed with the Association at 
least one week before any member of this Division shall permit him 
to function as such. 



147 

Rule 9. Each member of the Industry shall require his agents 
strictly to conform to his published prices, terms, and announced 
selling policies, and no member of the industry shall permit any of 
his agents to deviate in any respect whatsoever from his published 
prices, terms and announced selling policies. 

Article E — Exceptions and Additions to Part A 

Section 1. The provisions of Article IX, Section 1, of Part A, of 
this Code shall be modified as to members of this Division as follows i 

Members of the Clothespin Division shall file with the Administra- 
tive Agency within twentj^ (20) days after the effective date of this 
Code price lists in accordance with the provisions of Article IX. 

CANDY STICK DIVISION, UNIT NO. 4 

Arficle a — Definitions 

Section 1. The Candy Stick Division shall consist of all members 
of the Industry engaged in the manufacture of Cand}'' Sticks as 
defined in Section 2 of this Article. 

Section 2. The term " Candy Stick " as used in this Division shall 
mean pieces of wood of any size or shape, except fiat, to which 
confections are to be attached. 

Section 3. The term " broker " for the purpose of this Division 
shall mean one who sells for a manufacturer, in the manufacturer's 
name, for the manufacturer's account, at prices and on terms and 
conditions named by the manufacturer, who carries no stock and 
whose compensation is in the form of a brokerage for such services. 

Article B — Divisional Administrative Agency 

Section 1. Within twenty (20) days of the effective date of this 
Code the Secretary of the National Wood Candy Stick Institute 
shall call a meeting of all members of this Division for the purpose 
of electing the Administrative Agency of said Division. Due notice 
of this meeting shall be sent to every Member of the Division in 
writing or by such other methods as will insure all interested parties 
being informed of such meeting and its purpose. 

Section 2. The Administrative Agency of this Division shall con- 
sist of a Board of not more than four (4) Members, who shall 
serve for one year or until their customers are elected, and shall be 
elected by the following method : 

(a) At least one Member of the Administrative Agency shall be 
a Member of the Industry who is not a Member of the National 
Wood Candy Stick Institute, if there be any such, and shall be 
elected by a majority vote of all non-members of the Institute pres- 
ent in person, or voting by letter, or by proxy, each non-member 
to have one vote. 

(b) The remaining members shall be elected by a majority vote 
of Members of said Institute present in person, or voting by letter 
or by proxy, each member to have one vote. Two of these members 
shall be selected from the members located in the North as defined in 
Part 'A", Article II, Section 9, and one from the members of the 



148 

Institute located in the South as defined in Part "A", Article II, 
Section 8. 

(c) A vacancy in the membership of the Administrative Agency- 
may be filled from the appropriate group by a majority vote of 
the remaining Members of the Administrative Agency, provided, 
liowever, that there shall always be a Member of the Administrative 
Agency who is not a Member of the National Wood Candy Stick 
Institute, if there be any such. 

(d) In addition to the members elected by the Industry, the 
Administrator, in his discretion, may appoint one to three non-voting 
members to represent the Administrator. 

Article C — Teems of Payment 

No member of the Candy Stick Division shall allow a cash dis- 
count in excess of the following: Two (2) percent sight draft, or 
two (2) percent ten days after date of invoice, or two (2) percent 
tenth of month following date of shipment on accounts whose pur- 
chases average more than one shipment per month; or net thirty 
(30) days e.o.m. 

Article D — Trade Practices 

The following shall be the Trade Practice Kules for this Division 
in addition to those set forth in Article X of this Code : 

Rule 1. No member of this Division shall be permitted to store 
goods with customers. 

Rule 2. No member of the Industry shall ship goods on consign- 
ment except under circumstances to be defined by the Administrative 
Agency, where peculiar circumstances of the Industry require the 
practice. 

Rule 3. No member of this Division shall pay or allow a com- 
mission on a Federal or State Sales Tax. 

Rule 4. No member of this Division shall guarantee prices against 
decline or advance. 

Rule 5. No member of this Division shall permit brokers or sales- 
men on commission to split or divide commissions with custom^ers. 

Rule 6. All contracts of sale shall definitely specify quantity, 
price and final date of shipment. 

Rule 7. No manufacturer in this Division shall sell or offer for 
sale another commodity not produced by the members of this Divi- 
sion with products of this Industry at a price which will result in 
the purchaser paying less to the members of this Division than 
the published price of the member's own product and the cost of the 
other commodity to the member of the Industry. This provision 
shall not apply to commodities or articles commonly used for 
advertising in this Industry. 

Article E — Exceptions from Part A of this Code 

Section 1. The provisions of Article IX, Section 1, in Part A of 
this Code shall be modified as to members of this Division as follows : 
Members of the Candy Stick Division shall file with the Administra- 
tive Agency of this Division within twenty (20) days after the effec- 



149 

tive date of this Code, price lists in accordance with the provisions 
of the aforesaid Article IX, Section 1, Part A, of this Code. 

Section 2. The agency designated in Article IX, Section 1, Part 
A, to receive price lists from members of this Division shall imme- 
diatel}" distribute copies thereof to all members. 

FLAT AND .SHAPED VENEER PRODUCTS DIVISION, UNIT NO. 6 

Article A — Definitions 

Section 1. The Flat and Shaped Veneer Products Division shall 
consist of all members of the Industry engaged in the manufacture of 
flat and shaped veneer products. 

Section 2. The term " Flat and Shaped Veneer Products " as used 
in this Division shall mean flat or shaped wooden ice-cream spoons 
and sticks, flat or shaped wooden mustard paddles, flat or shaped 
wooden plant labels, flat wooden spatulas, tongue blades, and small 
wooden products manufactured by similar processes. Nothing herein 
shall include any container and/or contamer material included in 
the wooden package division of the Code of Fair Competition for 
the Lumber and Timber Products Industry. 

Section 3. The term '* broker "' for the purpose of this Division 
shall mean one who sells for a manufacturer, in the manufacturer's 
name for the manufacturer's account, at prices and on terms and con- 
ditions named by the manufacturer, who carries no stock and whose 
compensation is in the form of a brokerage for his services. 

Article B — Divisional Administrati\'e Agency 

Section 1. Within fifteen (15) days after the effective date of this 
Code the Chairman of the Veneer Products Institute shall call a meet- 
ing of all Members of this Division for the purpose of electing the 
Administrative Agency of said Division. Due notice of this meeting 
shall be sent to every Member of the Division in writing or by such 
other methods as will insure all interested parties being informed 
of such meeting and its purpose. 

Section 2. The Administrative Agency of this Division shall con- 
sist of a Board of not more than three (3) Members, who shall serve 
for one year or until their successors are elected, and who shall be 
elected by a majority vote of all the Members of the Division present 
in person, or voting by letter or by proxy, each member to have one 
vote. 

(a) A vacancy in the membership of the Administrative Agency 
may be filled by a majority vote of the remaining Members of the 
Administrative Agency. 

(b) In addition to the members elected by the Industry the Ad- 
ministrator, in his discretion, may appoint one to thi'ee nonvoting 
members to represent the Administrator. 

Article C — Terms or Payment 

No member of the Flat and Shaped Veneer Products Division shall 
allow or permit to be allowed, a cash discount in excess of the follow- 
ing: Two (2) percent cash for payment with order, or two (2) per- 



150 

cent sight draft, or two (2) percent ten (10) days after date of 
invoice, or two (2) percent tor payment by the Tenth of month follow- 
ing date of shipment on accounts whose purchases average one (1) or 
more shipments per month ; all cash discounts shall be figured on the 
net amount of the invoice after deducting sales or excise taxes, and 
all claims and allowances for defective or rejected goods. 

Article D — Trade Practices 

The following shall be Trade Practice Rules for this Division 
in addition to those set forth in Article X of Part A of this Code : 

Rule 1. No member of this Division shall permit the storing of 
goods with customers. 

Rule 2. No member of the Industry shall ship goods on consign- 
ment except under circumstances to be defined by the Administrative 
Agency, where peculiar circumstances of the Industry require the 
practice. 

Rule 3. No member of this Division shall guarantee prices and 
floor stocks against decline or advance. 

Rule 4. No member of this Division shall permit brokers or sales- 
men on commission to split or divide commissions with customers. 

Rule 5. All quotations shall include a definite limited time for 
acceptance but shall be subject to price lists thereafter published. 

Rule 6. No member shall make any contract of sale which does not 
definitely specify quantity, price, and final date of shipment, except 
under circumstances to be defined by the Divisional Agency. 

Article E — Exceptions and Additions to Part A 

Section 1. The provisions of Article IX, Section 1, in Part A of 
this Code shall be modified as to members of this Division as 
follows : Members of the Flat and Shaped Veneer Products Division 
shall file with the Administrative Agency of this Division within 
twenty (20) days after the effective date of this Code, price lists 
in accordance with the provisions of the said Article IX, Section 1, 
Part A of this Code. 

Section 2. The agency designated in Article IX, Section 1, to 
receive price lists from members of this division shall immediately 
distribute copies thereof to all members. 

THE TOOTHPICK DIVISION, UNIT NO. 6 

Article A — Definitions 

Section 1. The Toothpick Division shall consist of all Members of 
the Industry engaged in the manufacture of toothpicks as defined in 
Section 2 hereof. 

Section 2. The term " toothpick " as used in this Divisional Unit 
shall mean all toothpicks, whether round or flat, which are made 
entirely of wood. 

Section 3. The term " broker " for the purpose of tliis Division 
shall mean one who sells for a manufacturer, in the manufacturer's 
name, for the manufacturer's account, at prices and on terms and 



151 

conditions named by the manufacturer, who carries no stock and 
whose compensation is in the form of a brokerage for his services. 

Section 4. The term " jobber " for the purpose of this Division 
shall mean a wholesaler who buys from a manufacturer, or his 
broker at the prices and on the terms and conditions named by such 
manufacturer, and who resells primarily to the retail trade. 

Akticle B — Divisional Administrative Agency 

Section 1. The Administrative Agency of thig Division shall be 
the Executive Committee of the Toothpick Institute. 

Article C — Trade Practices 

The following acts or practices in addition to those enumerated in 
Part A, Article X, are hereby specifically declared to constitute 
unfair methods of competition and are forbidden under this Divi- 
sional Unit : 

EuLE 1. Guaranteeing prices and floor stocks against decline in 
prices. 

EuLE 2. Storing of goods with customers. 

EuLE 3. Permitting brokers, or salesmen on commission to split 
or divide commissions with customers. 

EuLE 4. Extending terms of payment beyond 60 days from date of 
shipment. 

EuLE 5. The making of contract of sale which do not specify 
definite prices, terms, maximum and minimum quantities, and final 
delivery date. 

EuLE 6. No member of the Industry shall give any brokerage or 
other commission to one to whom he sells as a jobber. 

Article D — Exceptions and Additions to Part A 

Export shipments shall be exempt from the provisions of Article 
IX of Part A, of this Code. 

SKEWER DIVISION, UNIT NO. 7 
Article A — Definitions 

Section 1. The Skewer Division shall consist of all members of 
the Industry engaged in the manufacture of Skewers. 

Section 2. The term " Skewer " as used in this Division shall 
mean pieces of wood, pointed at one or both ends, of any size or 
shape, except flat, commonly used in the packing of meat. 

Section 3. The term " broker " for the purpose of this Division 
shall mean one who sell^ for a manufacturer, in the manufacturer's 
name for the manufacturer's account at prices and on terms and con- 
ditions named by the manufacturer, who carries no stock and whose 
compensation is in the form of a brokerage for such services. 

Article B — Divisional Administrative Agency 

Section 1. Within twenty (20) days of the effective date of this 
Code the Secretary of the National Wood Skewer Manufacturers 



152 

Association shall call a meeting of all Members of this Division for 
the purpose of electing the Administrative Agency of said Division. 
Due notice of this meeting shall be sent to every Member of the 
Division in writing or by such other methods as will insure all 
interested parties being informed of such meeting and its purpose. 

Section 2. The Administrative Agency of this Division shall 
consist of a Board of not more than four (4) Members, who shall 
serve for one year or until their successors are elected, and shall be 
elected by the following method : 

(a) At least one Member of the Administrative Agency shall be a 
Member of the Industry who is not a Member of the Association, if 
there by any such, and shall be elected by a majority vote of all non- 
members of the Association present in person, or voting by letter or 
by proxy, each non-member to have one vote. 

" (b) The remaining members shall be elected by a majority vote 
of all the members of said Association present in person, or voting 
by letter or by proxy, each member to have one vote. Two of these 
members shall be selected from members of the Association located 
in the North as defined in Part "A", Article II, Section 9, and one 
from the members of the Association located in the South as defined 
in Part "A", Article II, Section 8. 

(c) A vacancy in the membership of the Administrative Agency 
may be filled from the appropriate group by a majority vote of the 
remaining Members of the Administrative Agency, provided, how- 
ever, that there shall always be a Member of the Administrative 
Agenc}^ who is not a Member of the said Association, if there be 
any such. 

(d) In addition to the members elected by the Industry, the Ad- 
ministrator, in his discretion, may appoint one to three non-voting 
members to represent the Administrator. 

Article C — Terms or Payment 

No member of the Skewer Division shall allow a cash discount 
in excess of the following: Two (2) percent sight draft, or two (2) 
percent ten days after date of invoice, or two (2) j^ercent tenth of 
month following date of shipment on accounts whose purchases 
average more than one shipment per month; or net thirty (30) days 
e.o.m. 

Article D — Trade Practices 

The following shall be the Trade Practice Rules for this Division 
in addition to those set forth in Article X of this Code. 

Rule 1. No member of this Division shall store goods with cus- 
tomers. 

Rule 2. No member of the Industry shall ship goods on consign- 
ment except under circumstances to be defined by the Administrative 
Agency, where peculiar circumstances of the Industry require the 
practice. 

Rule 3. No member of this Division shall pay or allow a commis- 
sion on a Federal or State Sales Tax. 

Rule 4. No member of this Division shall guarantee prices against 
decline or advance. 



153 

Rule 5. No member of this Division shall permit brokers or sales- 
men on commission to split or divide commissions with customers. 

Rule 6. All contracts of sale shall specify quantity, price, and 
final date of shipment. 

Article E — Exceptions from Part A of this Code 

Section 1. The provisions of Article IX, Section 1, of Part A of 
this Code shall be modified as to members of this Division as follows : 
Members of the Skewer Division shall file with the Administrative 
Agency of this Division within twenty (20) days after the effective 
date of this Code, price lists in accordance with the provisions of the 
said Article IX, Section 1, Part A, of this Code. 

Section 2. The Administrative Agency designated in Part A, 
Article IX, Section 1, to receive price lists from members of this 
Division shall immediately distribute copies thereof to all members 
of the Division. 

THE BRUSH HANDLE AND BRUSH BLOCK DIVISION, UNIT NO. 8 

Article A — Definition 

Section 1. The Brush Handle and Brush Block Division consists 
of all manufacturers and/or finishers of wooden brush handles and 
all wooden parts thereof described in Section 2 hereof. 

Section 2. The term " Brush Handle and Brush Block " as used 
in this Divisional Unit shall mean all wooden brush handles not 
exceeding 30 inches in length, and all finished wooden brush blocks ; 
including brushes in which the brush part is made of bristles, hair, 
fiber, wire, feather, wool, and/or grass, except those products which 
are governed by provisions of any other Code of Fair Competition, 
or of any other division or subdivision of this Code. 

Section 3. The term "Association " as used herein shall mean the 
American Brush Handle and Brush Block Manufacturers Association. 

Article B — DI^^SIONAL Administrative Agency 

Section 1. Within twenty (20) days after the effective date of this 
Code the Secretary of the American Brush Handle and Brush Block 
Manufacturers Association shall call a meeting of all Member<=! of 
this Division for the purpose of electing the Administrative Agency 
of said Division. Due notice of this meeting shall be sent to every 
Member of the Division in writing or by such other methods as will 
insure all interested parties being informed of such meeting and its 
purpose. 

Section 2. The Administrative Agency of this Division shall con- 
sist of a Board of not more than five (5) Members, who shall serve 
for one year or until their successors are elected, and shall be elected 
by the following method: 

(a) Two Members of the Administrative Agency shall be mem- 
bers of the Industry who are not members of the Association, if 
there be any such, and shall be elected by a majority vote of all 
non-members of the Association present in person, or voting by 
letter or by proxy, each non-member to have one vote. 



154 

(b) The remaining members shall be elected by a majority vote 
of all the Members of the Association present in person, or voting 
by letter or by proxy, each member to have one vote. 

(c) A vacancy in the membership of the Administrative Agency 
may be filled from the appropriate group by a majority vote of the 
remaining Members of the Administrative Agency, provided, how- 
ever, that there shall always be a Member of the Administrative 
Agency who is not a Member of the said Association if there be any 
such. 

(d) In addition to the Members elected by the Industry, the 
Administrator, in his discretion, may appoint one to three non- 
voting members to represent the Administrator. 

Article C — Terms of Payment 

Section 1. The terms of payment for this Division shall not be 
more favorable than a cash discount of 3% for payment in advance 
of shipment; 2% for payment within ten days after shipment; 1% 
for paj'ment on or before the 10th of any month for shipments of 
the previous month; net 30 days e.o.m. ; all cash discounts shall be 
figured on the net amount after deducting sales and/or excise taxes 
and all claims and allowances for defective or rejected goods. 

Article D — Trade Practices 

The following shall be Trade Practice Rules for this Division in 
addition to those set forth in Article X of Part A of this Code : 

Rule 1. No member of this Division shall make any contract 
of sale which does not definitely specify quantity, price, and final 
date of sliipment. 

Rule 2. No member of this Division shall issue any invoice to a 
purchaser which does not show the terms of payment and actual 
date of shipment. 

Rule 3. No member of this Division shall make separate charges 
for containers, such as bags, barrels, boxes, or cartons. 

Article E — Exceptions and Additions to Part A 

(1) Article IX of Part A of this Code shall not be operative in 
this Division, except that the Administrative Agency may within 
sixty (60) days after approval of this Code designate any articles 
manufactured by the members of this Division on which open prices 
shall be filed and with respect to which articles the provisions of 
Article IX shall be operative. 

o 



Approved Code No. 384 

CODE OF FAIR COMPETITION 

FOR THE 

FUNERAL SERVICE INDUSTRY 

As Approved on April 4, 1934 



ORDER 



Approvikg Code of Fair Competition for the Funeral 
Service 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 Funeral Service 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 Section 13 of 
Article VII be amended by changing the period to a comma after 
the word " service " in the ninth line thereof and adding the fol- 
lowing : 

" provided, however, that nothing contained in this Section shall 
supersede any state law which by its terms permits any of the prac- 
tices described herein by members of the industry." 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Admhiistrator. 

Washington. D.C, 

April ^, 193 Jf. 

51243° 482-16 34 (155) 



REPORT TO THE PRESIDENT 

The President, 

The WMic House. 

Sir: A Public Hearing on the Code of Fair Competition for the 
Funeral Service Industry, submitted b}^ the National Funeral Di- 
rectors Association of the United States, Inc. and the National Se- 
lected Morticians, was conducted in Washington on the 6th of 
December, 1933, in accordance with the provisions of the National 
Industrial Recovery Act. At the Public Hearing it was established 
that the Code was further concurred in by two other associations, 
namely, the Funeral Service Bureau and the Independent Funeral 
Directors Association. These four associations represent approxi- 
matel}' 87 percent of the Industry and they decided to submit the 
Code as an Industr3^ 

The maximum liours permitted under this Code are 40 per week, 
except that embalmers, lawfully engaged in embalming and those 
conducting funerals, shall be limited to 84 hours per week. 

The minimum wage provided in tlxis Code is $15.00 per week or 
400 per hour on an hourly basis, except embalmers, who sFiall be 
i:)aid $25.00 per v/eek. Provision is made for adjustment of all 
"wages above the minimum. 

This Industry in general embraces establishments engaged in su- 
pervising funeral services, prior to the burial or disposal of dead 
human bodies. According to the Bureau of Census there were 34,132 
licenses issued to embalmers and funeral directors for the year 1930 
and the api^roximate number of establishments engaged in the Indus- 
try for that year was 25.500. The average number of funerals per 
establishment for 1929 Avas 57 and for 1933 about 52. In practically 
every large community less than 10 percent of tlie establishments 
handle the greater share of the business. 

Employment is very low compared with the number of establish- 
ments. A large percent of the establishments are on a sole proprie- 
torship or partnership basis anrl the owners cooperate with part-time 
employees in performing the services rendered by the Industry. 
These establishments must remain open 24 hours a day, however, em- 
ploj'ees are not kept on the job 24 hours a day but are subject to call 
when their services are required. Therefore, no regular hours are 
worked in this Industry. 

The proposed Code provisions on hours Avill probably increase the 
number of employees in the larger establishments. The smaller es- 
tablishments under normal operations Avill not increase the number 
of employees because they average less than one funeral per week. 

The information available is of very little use in trying to estab- 
lish a pre-code Avage rate. However, there is an undetermined num- 
ber of employees who receive less than the proposed Code hourly 

(156) 



157 

wage of 400. The additional wage burden to this Industry cannot be 
determined due to the irregular hours worked. 

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 aiid 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 powder, by reducing and 
relieving unemployment, by ijuproving standards of labor, and by 
otherwise rehabilitating industry. 

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

(c)"The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant 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. 

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. 

Respectfully, 

Hugh S. Johnson, 

Adimnistrator. 
April 4, 1934. 



CODE OF FAIR COMPETITION FOR THE FUNERAL 
SERVICE 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 Industry, and its provisions shall be the standard of fair 
competition for such industry and binding upon every member 
thereof. 

Article II — Definitions 

1. The term " Funeral Service Industry ", as used herein, shall 
mean any person, firm, corporation or other form of enterprise, 
engaged in the preparation of dead human bodies, for burial or 
disposal by embalming or other sanitaiy methods and/or directing 
and supervising funeral services prior to burial or disposal, and/or 
the sale of funeral merchandise at retail, and shall include all persons, 
firms, corporations, or other forms of enterprise, maintaining a mor- 
tuary, funeral home or other similar establishment and/or using in 
connection with their name and business, the words " funeral direc- 
tor ", " mortician ", " undertaker ", or any other title or words of 
similar meaning and import and such branches or subdivisions as 
may from time to time be included under the provisions of this code. 

2. The term " member of the industry " includes, but without 
limitation any individual, partnership, association, corporation or 
other form of enterprise engaged in the industrj'', 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 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 shall be permitted to work in excess of forty (40) 
hours in any one week; except that embalmers, lawfully engaged 
in embalming, and also those conducting funerals, shall be limited 
to eighty-four (84) 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 lie 
be emploji^ed by one or more employees. 

3. The above provisions as to hours do not apply to persons em- 
ployed in a managerial, executive or supervisory capacity receiving 
thirty-five dollars ($35.00) per week or more. 

(158) 



159 
Article IV — Wages 

1. No employee shall be paid less than at the rate of fifteen dollars 
($15.00) per week, or forty cents (40^) per hour, when employed on 
an hourly basis, except lawful embalmerg, who shall be paid not less 
than at the rate of twenty-five dollars ($25.00) per week. 

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

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

4. Wages above Minimum. If an adjustment of wages above the 
minimum fixed in this Code has not been made since July 1st, 1933, 
there shall then be an adjustment made within ninety (90) day3 
from the date of approval of this Code. Such adjustment shall mean 
that the differentials existing prior to the formulation of this Code 
shall be maintained for employees other than persons engaged in a 
managerial, executive or supervisory capacity who receive more 
than thirty-five dollars ($35.00) per week, provided, however, that 
in no event shall hourly rates of pay be reduced. Each member of 
the Industry shall make a report of such adjustments, whether made 
prior to or subsequent to the date of approval of this Code, to the 
Code Authority. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the industry. No person under eighteen (18) years of age shall 
be employed at operations or occupations which are hazardous in 
nature or dangerous to health. In any State an employer shall be 
deemed to have complied with this provision as to age if he shall 
have on file a certificate or permit duly signed by the Authority in 
such State empowered to issue employment or age certificates or 
permits showing that the employee is of the required age. 

2. 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 i'e):)resentatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents in the designation of such representatives, or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

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

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

3. No employer shall reclassify employees or duties of occupations 
performed as they existed on October 1, 1933, or engage in any other 
subterfuge, for the purpose of defeating the purposes of the Act or 
of this Code. 

4. No provision in this Code shall supersede any State or Federal 
law which imposes on employers more stringent requirements as to 



160 

age of employee, wages, hours of work, or as to safety, health, sani- 
tary or general working conditions, or insurance, or fire protection, 
than are imposed b}'^ this Code. 

5. Ever}^ employer shall make reasonable pro\dsion for the safety 
and health of his employees at the place and cluring the hours of their 
emplo^^ment. 

G. All employers shall post and keep posted complete copies of this 
Code in conspicuous places acce&sible to emploj'ees. 

Article VI — Administration 

ORGANIZATION AND CONSTITUTION 

1. A Code xVuthority is hereby established to cooperate with the 
Administrator in the administration of this code and shall consist 
of fifteen (15) members to be chosen by the industry through a fair 
method of selection, approved by the Administrator, to serve for a 
period of one (1) year from the date of their selection. The Ad- 
ministrator 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. 

2. Each trade or industrial association directly or indirectly partic- 
ipating in the selection or activities of the Code Authority shall 
impose no inequitable restrictions on membership, and shall submit 
to the Administrator true copies of its articles of organization, by- 
laws, regulations and any amendments when made thereto, together 
with such other information as to memberships, organization 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 prescribe such 
hearings as he may deem proper ; and if he shall find that the Code 
Authority is not truly representative or does not in other respects 
comply with the provisions of the Act. he may take such action as 
he may deem necessary under the circumstances. 

4. No inequitable restrictions on admission to membership in any 
trade association or organized group, participating in the activities 
of the Code Authority shall be imposed, and any member of the 
industry shall be eligible for membership in any such trade associa- 
tion or organized group, under the same conditions as are imposed 
on any other member. 

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



161 

POWERS AND DUTIES 

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

(a) To administer the provisions of this Code and provide for 
the compliance of the industry with the provisions of the Act, and 
to propose and submit amendments and/or exceptions to or modi- 
fications of this Code for the approval of the Administrator, after 
such notice and hearing as he ma}^ prescribe, said amendments or 
modifications, when so approved, to become a part of this Code and 
to have the same force and effect as any other provisions of this Code. 

(b) To adopt b^'^-laws and regulations for its procedure and for 
the administration and enforcement of the Code under such rules 
and regulations as may be prescribed by the Administrator. 

(c) To obtain from members of the industr}^ such statistical in- 
formation and reports as are required for the administration of the 
Code. No individual reports shall be disclosed to any other member 
of the industry or any other party except to such governmental 
agencies as may be directed by the Administrator. 

(d) To make recommendations to the Administrator as to cash 
discounts, and uniform cost accounting. 

(e) Upon the request of the Administrator or upon complaint of 
interested parties, or upon its own initiative, to make such inquiry 
and investigation as to the operation of this Code as may be necessary 
and proper under such rules and regulations as may be prescribed 
by the Administrator and report the same to the Administrator. 

(f ) 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. 

(g) 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 and 
approved by the Administrator. 

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

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

(j) To 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 industrj'. 

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 



162 

be suspended to afford an opportunity for investigation of the merits 
of such action and further consideration of 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' iiotice to him of intention to proceed with such 
action in its original or modified form. 

Article VII — Trade Practices 

1. No member of the industry shall brand or mark any service or 
merchandise in any manner which deceives or misleads purchasers 
w'ith respect to the brand, grade, quality, quantity, origin, size, sub- 
stance, character, nature, finish, material, content or preparation of 
such merchandise. 

2. 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 ite 
use, trade-mark, grade, quality, quantity, origin, size, substance, char- 
acter, nature, finish, material, content or preparation) or credit terms, 
values, policies, services or the nature or form of the business 
conducted. 

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 
knowledge of such employer, principal or party. Commercial brib- 
ery provisions shall not be construed to prohibit free and general 
distribution of articles commonly used for advertising except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

4. No member of the industry shall attempt to induce the breach of 
an existing contract betw^een 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. 

o. No member of the industry shall secretly offer or make any pay- 
ment or allowance of a rebate, refund, commission, credit, unearned 
discount or excess allowance, whether in the form of money or other- 
wise, nor shall a member of the industry for the purpose of influenc- 
ing a sale secretly offer or extend to any purchaser any special service 
or privilege not extended to all purchasers of like quantities under 
like terms and conditions. 

6. No member of the industry shall cause the defamation of com- 
petitors by falsely imputing to them dishonorable conduct, inability 
to perform contracts, questionable credit standing, poor equipment 
or mortuary establishments, inferior merchandise, or by other false 
representations, or by the false disparagement of their services or 
the.ir selling prices. 

7. No member of the industry shall sell or publicly offer to sell 
any merchandise, or directly or indirectly render any service below 
his individual cost, except he may sell below his own cost to meet 
bona fide competition. For this purpose cost is defined as the cost 



163 

determined by cost accounting methods recognized in the industry 
and approved by the Code Authority and the Administrator. 

8. No member of the industry shall distribute and/or sell any 
funeral merchandise or supplies from -which the label, serial number, 
or other identifying mark of the manufacturer has been effaced 
or removed. 

9. No member of the industry sliall ship or deliver merchandise or 
supplies with the intent to deceive the purchaser, which do not con- 
form to the samples submitted or representations made prior to secur- 
ing the order therefor. 

10. No member of the industry shall display or show funeral mer- 
chandise without sale prices marked in figures that are legible and 
capable of being understood by the average purchaser. 

11. No member of the industry shall offer or give any prize or 
premium in connection with or as an inducement to the sale of ser- 
vices or merchandise by any scheme which involves lottery, misrepre- 
sentation or fraud. 

12. No member of the industry shall organize or promote or par- 
ticipate directly or indirectl}' in the organization, promotion or ac- 
tivities of any enterprise selling cemetery lots, grave space or other 
interment property, on a speculative basis or by the use of mis- 
representation or fraud; nor shall any member accept a commission 
from either seller or purchaser upon the sale of any such interment 
propert}^ sold under such an enterprise; nor shall any member, ex- 
cept those actually and legally so engaged prior to the effective date 
of this Code, hereafter engage in performing any service of this 
industry, as herein defined, within the confines of an}- tax exempt 
cemetery or an}^ other tax exempt property. 

13. No member of the industry shall organize or promote or par- 
ticipate, directly or indirectl}-, in the organization, promotion, or op- 
eration of any form of enterprise whicli deceives or defrauds mem- 
bers, policy holders or certificate holders as to the financial respon- 
sibility of such enterprise or the quality or value of funeral mer- 
chandise or services offered by such enterprise or Avhich limits or 
restricts the freedom of choice, in the open market, of the person or 
persons having the legal right of such choice, regarding contracts, 
purchases and arrangements with reference to any part of a funeral 
service. It shall be the duty of every member of the industry 
before participating, directly or indirectly, in any such plan to 
determine the sokv'ency, integrity and legality thereof.^ 

14. No member of the industrj^ shall employ, retain or otherwise 
engage agents to solicit business. 

Article VIII — Modification 

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

1 See paragraph 2 of order approving this Code. 



164 

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

3. The Code Authority may make recommendations for modifi- 
cations to 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 IX — Monopolies, Etc. 



Approved Code. No. 384, 
Registry No. 1749-04. 



\ 



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

Article X — Price Increases ■ 

Whereas the policy of the Act to increase real purchasing power 
will be made 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 XI — Effective Date 

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



o 



Approved Code No. 385 
CODE OF FAIR COMPETITION 

FOR THE 

RAILROAD SPECIAL TRACK EQUIPMENT 
MANUFACTURING INDUSTRY 

As Approved on April 6, 1934 



ORDER 



APPROVING CODE OF FAIR COMPETITION FOR THE RAILROAD SPECIAL TRACK 
EQUIPMENT MANTJFACTURING 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 Railroad Special Track Equipment Manu- 
facturing Industry, and hearings having been duly held thereon and 
the annexed report on said Code, containing findings with respect 
thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
purguant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A dated December 
30, 1933, and otherwise ; do hereby incorporate by reference said an- 
nexed report and do find that said Code complies in all respects with 
the pertinent provisions and will promote the policy and purposes 
of said Title of said Act; and do hereby order that said Code of 
Fair Competition be and it is hereby approved subject to the follow- 
ing conditions : that the provisions of Article VII, Section 2, insofar 
as they prescribe a waiting period between the filing with the Secre- 
tary or Assistant Secretary of the Code Authority (i.e. actual re- 
ceipt by the Code Authority) and the effective date oi revised price 
lists or revised terms and conditions of sale and payment, be and 
they are hereby stayed pending my further order either within a 
period of sixty (60) days from the effective date of this Code, or 
after the completion of a study of open price associations now being 
conducted by the National Recovery Administration. 

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval recommended: 
A. R. Glanct, 

Division Administrator. 

Washington, D.C, 

Ajn^il 6, 19S4. 

51565°-^— 482-42 34 (165) 



REPORT TO THE PRESIDENT 

The PREsroENT, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Raih'oad Special Track Equipment Manufacturing Industry as re- 
vised after the Pubhc Hearing conducted thereon in Washington, 
D.C., on December 29, 1933 in accordance with the provisions of the 
National Industrial Recovery Act. 

I PROVISIONS AS TO HOURS AND WAGES 

The Code provides for a normal maximum forty (40) hour week 
of six (6) days and an eight (8) hour day except as hereinafter 
provided. 

Executives, those employed in a supervisory capacity or in engi- 
neering or laboratory work, individually receiving pay at the rate 
of Thirty-Five Dollars ($35.00) or more per week and outside sales- 
men are exempted from the hour provisions. 

Watchmen may w^ork fifty-six (56) hours during a work week of 
six (6) days. 

Firemen and power plant engineers may be employed forty-four 
(44) hours during a work week of six (6) days. 

Repair men, maintenance men and shipping clerks may be em- 
ployed forty-four (44) hours during a work week of six (6) days 
provided one and one-half (II/2) times the normal rate of pay is 
paid for overtime. 

Office employees may be employed forty-eight (48) hours in any 
one week in any one calendar month. 

During any six (6) weeks in any six (6) months' period beginning 
January 1 and July 1 of each year, any factory employee may be per- 
mitted to work up to forty-eight (48) hours per week provided one 
and one-half (1^) times his regular rate of pay is paid for overtime. 

These maximum hours shall not apply to any employee on emer- 
gency maintenance or emergency repair work involving breakdowns 
or protection of life or property or on emergencies occasioned by the 
necessity for the services of certain specially skilled employees which 
cannot be taken care of by the employment of additional men pro- 
vided one and one-half (l^/^) times the normal rate shall be paid 
for overtime. 

Provision is made for one da}'^ of rest in seven and the standard 
clause regarding employment by several employers is incorporated 
in the code. 

The standard minimum wage rate is forty (40) cents per hour in 
the North and thirty-two (32) cents in the States of South Carolina, 
Alabama, Mississippi, Louisiana and Tennessee. 

Office employees shall receive a minimum of $15.00 per week pro- 
vided that office boys and girls may be paid not less than eighty (80) 

(I6G) 



167 

per cent of this minimum and shall constitute not more than five (5) 
per cent of the clerical and office employees. 

Employers shall make equitable adjustments for all employees 
receiving more than the minima and the Code Authority will report 
all such adjustments to the Administrator. 

The minimum rate shall apply to all employees irrespective of 
whether they are actually compensated on a time rate, piece work or 
other basis. 

No person under sixteen (16) years of age shall be employed in 
the Industry, nor shall any one under eighteen (18) be employed 
in the manufacture, repair and/or handling of the products of the 
Industry. 

GENERAL STATEMENT 

The Railroad Special Track Equipment Industry is a capital goods 
industry and comprises the manufacture and sale of special Tee-Rail 
track work of carbon steel and other metals for use in railroad track 
made with standard rails of sixty pounds per yard and heavier. 
There are approximately tAventy concerns in the Industry operating 
more than twenty-seven plants. The Industry has been seriously 
affected by the depression as its prosperity is in direct ratio to the 
purchasing power of the railroads. Available statistics show a total 
production for eighteen concerns in the Industry in 1928 of $18,000,000 
and for fifteen concerns in 1933 of $1,400,000, a decrease of 92.2%. 

In 1933, the Industry employed 1,621 persons, a decrease of 51.7% 
from 1929. 

No female factory workers are employed in this Industry. 

Payrolls of seventeen concerns in 1929 amounted to $4,720,368 and 
$1,046,500 in 1933, a decrease of about 78%. 

Average hours per man per week for factory workers decUned 
from 51.5 hours in 1929 to 25.3 hours in June 1933, a decrease of 
50.8% and the average hourly rate for factory wage earners declined 
25.7% in that time. 

The adoption of the President's Reemployment Agreement in- 
creased factory employment 14.1% between June 1933 and October of 
the same year; factory payrolls increased 56.2% and office payrolls 
9.3%. Average hours per man per week showed an improvement of 
20.9% ; the average hourly rates for factory wage earners increased 
14% and their average weekly earnings showed an improvement of 
36.5%. The proposed wage provisions will substantially increase 
payrolls but the hour provisions will not materially increase employ- 
ment over the President's Reemployment Agreement results. Reem- 
ployment in the Industry can only be accomplished by a substantial 
increase in the demand for its products. The immediate prospect of 
the inflow of Public Works Administration funds will favorably 
affect this 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 



168 

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 tlie trade groups, 
by inducing and maintaining united action of labor and manage- 
ment imder 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- 
porarity 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 reliabilitating 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 Indus- 
try: and that said group imi30ses no inequitable res-trictions on ad- 
mission to membership therein. 

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

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

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

For these reasons therefore I have approved this Code subject to 
the following conditions : that the provisions of Article VII, Section 
2, insofar as they prescribe a waiting period between the filing with 
the Secretary or Assistant Secretary of the Code Authority (i.e. 
actual receipt by the Code Authority) and the effective date of re- 
vised price lists or revised terms and conditions of sale and payment, 
be and they are hereby stayed pending my further order either within 
a period of sixty (60) days from the enective date of this Code, or 
after the completion of a studj'^ of open price associations now being 
conducted by the National Eecovery Administration. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 
April 6. 1934. 



CODE OF FAIR COMPETITION FOR THE RAILROAD 
SPECIAL TRACK EQUIPMENT 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 
Railroad Special Track Equipment Manufacturing Industry; 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 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 2, The term " Railroad Special Track Equipment Manu- 
facturing Industry " as used herein means and includes the manufac- 
ture and sale of all special Tee Rail track work of carbon steel, 
manganese steel and/or other metals for use in railroad track made 
with standard tee rails of sixty pounds per yard and heavier. It 
includes all switches, switch points, switch stands, ground throws, 
frogs, crossings, stock and special connecting rails, guard rails, guard 
rail clamps, bridge rails, and expansion joints and repairs made and 
all parts furnished for above items. It shall not include electrical 
apparatus for operating any special track equipment, compromise 
joints, tie plates, rail braces, gauge rods, except when furnished in 
connection with the above specified items, rail except when sold in 
connection with the above items and on which additional work other 
than drilling is performed. 

Section 3. The term " member of the Industry " means and in- 
cludes but without limitation, any individual, partnership, associa- 
tion, corporation or other form of enterprise engaged in the Industry 
either as an employer or on his or its 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 term " employer " as used herein, includes anyone 
by whom any such employee is compensated or employed. 

Section 6. The term " publish " means to make available to the 
public. 

Article III — Hours 

Section 1. Maximum Hours. — No employee shall be permitted to 
work in excess of forty (40) hours in any one week or eight (8) 
hours in any twenty-four (24) hour period beginning at midnight, 
except as herein otherwise provided, nor more fhan six (G) days per 
week. 

Section 2. Exceptions as to Hours— {fi) Executives, ctc.—T\\& 
provisions of section 1 above shall not apply to executives, those 

(1G9) 



170 

employed in a supervisory capacity or in engineering, or laboratory 
work, individually receiving pay at the rate of thirty-five (35) 
dollars or more per week and outside salesmen. 

(b) Watchmen. — Watchmen may not be employed in excess of 
fifty-six (56) hours per week. 

(c) Firemen and Power-PJant Engineers. — Firemen and power- 
plant engineers may not be employed in excess of forty-four (44) 
hours per week. 

(d) Repair men^ etc. — Repair men, maintenance men, and ship- 
ping clerks may be employed up to forty-four (44) hours per week, 
provided at least one and one-half times their re^ilar rate of pay 
shall be paid for time worked in excess of forty (40) hours in any 
one week or eight (8) hours in any twenty-four (24) hour period. 

(e) OMce Emqjloyees. — Office employees may be employed up to 
forty-eight (48) hours in any one week in any one calendar month. 

(f) Ordinary Overtime for Seasonal Periods. — During any six 
(6) weeks in any six (6) months' period beginning January 1 and 
July 1 of each year any factory employee may be employed up to 
forty-eight (48) hours per week provided at least one and one-half 
times such employee's regular rate of pay shall be paid for hours 
worked in excess of forty (40) hours in any one week or eight (8) 
hours in any twenty-four (24) hour period. 

(g) Emergency Overtime. — The maximum hours fixed in section 1 
above shall not apply to any employee on emergency maintenance or 
emergency repair work involving breakdowns or protection of life 
or property, or on emergencies occasioned by the necessity for the 
services of certain specially skilled employees which cannot be takeu 
care of by the employment of additional men, but in any such special 
case at least one and one-half times such employee's re^ilar rate of 
pay shall be paid for hours worked in excess of forty (40) hours in 
any one week or eight (8) hours in any twenty- four (24) hour 
period. 

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

Article IV — Wages 

Section 1. No employee shall be paid less than at the rate of 
forty (40) cents per hour, except as hereinafter provided. 

Section 2. No employee shall be paid less than 32 cents per hour 
in the following states: South Carolina, Alabama, Mississippi, 
Louisiana and Tennessee. 

Section 3. The minimum waoe that shall be paid by any employer 
to office emiDloyees, except outside salesmen, shall be at the rat-e of 
fifteen (15) dollars per week. 

Section 4. Office boys and girls shall be paid not less than eighty 
(80) per cent of the minimum rate established in Section 3 above. 
The total number of office boys and girls receiving less than the 
minimum rate shall not exceed five per cent of the total number of 
employees engaged in clerical or office work. 

Section 5. The rates of pay of all hourly employees covered by 
Section 1 and of tlie employees covered by Sections 2, 3 and 4 hereof 



171 

receiving more than the minimum rate as herein provided but less 
than at the rate of thirty-five ($35.00) dollars per week which have 
not subsequent to June 16, 1933, been equitably adjusted, shall *b6 
so adjusted not lat^r than fifteen (16) days subsequent to the effec- 
tive date of this Code, provided, however, that in no event shall 
rates of pay of such employees be reduced. Xot later than sixty (60) 
days after the effective date of this Code the Code Authority shall 
report to the Administrator the action taken by all employers in 
the Industry since May 1, 1933, in making such adjustments. 

Section 6. This Article establishes a minimum compensation, irre- 
spective of whether an employee is actually compensated on a time 
rate, piece-work, or other basis. 

Abticle V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industry and no person under eighteen (18) yearg 
of age shall be employed in an employer's plant in the Industry in 
the manufacture, repair and/or handling of the products of the 
Industry. In any State an employer shall be deemed to have com- 
plied with this provision as to age if he shall have on file a certifi- 
cate or permit duly signed by the Authority in such State 
empowered to issue employment or age certificates or permita 
showing that the employee is of the required age. 

Section 2. Pursuant to Section 7 (a) of Title I of the Act, the 
Code shall be subject to the following conditions: 

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

"(b) 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." 

Section 3. Employers shall not reclassify employees or duties 
of occupations performed or engage in any other subterfuge for the 
purpose of defeating the purposes of this Code or of the Act. 

Section 4. Every emplover 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 for ap- 
proval within six months after the effective dat« of this Code. 

Section 5. Within each State the Code shall not supersede any 
laws of such State imposing more stringent requirements on em- 
ployers, regulating age of employees, wages, and hours of work or 
general working conditions than are provided under this Code. 

Section 6. All employers shall post complete copies of this Code 
in conspicuous places accessible to all employees. 



172 

Article VI — Administration of the Code 

Section 1. There shall be forthwith established a Code Authority 
of one representative from each member of the Industry complying 
with the requirements of this Code and sustaining its reasonable 
share of the expense of its administration. Each member of the Code 
Authority shall have as many votes as the member of the Industry 
represented by him is entitled to pursuant to the provision of Sec- 
tion 4 of this Article. In addition the Administrator may appoint 
not to exceed three members of the Code Authority without vote. 
The members who may be appointed by the Administrator, together 
with the Administrator, shall be given notice and may sit at all 
meetings of the Code Authority. 

Section 2. 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 complying 
with the requirements of this Code and sustaining their reasonable 
share of the expense of its administration. Such reasonable share 
of the expense which shall be assessed by the Code Authority shall 
bear the same relation to the total thereof as the number of votes 
pursuant to the provisions of this Code at the time of any such 
assessment shall bear to the total number of votes that might be cast. 
Failure of any assenting member to pay the amount of any assessment 
against such member for a period of thirty days after the date on 
which it became payable shall prohibit such member from partici- 
pating in the activities of the Code Authority. 

Section 3. The Code Authority may from time to time appoint 
such committees and/or agents as it shall deem necessary or proper 
in order to effectuate the purpose of the Code, and it may delegate 
to any such committee and/or agent generally or in particular 
instances such of the powers and duties of the Code Authority 
under the Code as it shall deem necessary or proper in order to 
effectuate such purpose but nothing in this section shall relieve the 
Code Authority from the responsibilities imposed upon it by the 
Code. 

Section 4. At each meeting of the members entitled to vote each 
member thereof shall have as many votes as shall equal the quotient 
obtained by dividing by 500 the aggregate amount in net tons of 
products shipped by said member for consumption in the United 
States during the preceding calendar year. Fractions in such quo- 
tients shall be disregarded; provided, however, that each member 
shall have at least one vote. All questions as to the number of votes 
which each member shall be entitled to cast at any meeting of the 
members thereof shall be determined by the Code Authority. Any 
member of the Industry who shall be entitled to vote at meetings 
of the members may vote by proxy in writing, duly executed by said 
member, and filed with the Code Authority. Any such proxy may 
be for a specified meeting or be a general proxy for any or all 
meetings that may be held until such proxy shall have been revoked 
by an instrument in writing duly executed by the member which 
gave such proxy and filed with the Code Authority. 

Section 5. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Author- 



173 

ity 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 or organization, as the Administrator may deem neces- 
sary 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 prescribe 
such hearings as he may deem proper ; and thereafter if he shall find 
that the Code Authority is not truly representative, may require an 
appropriate modification in the method of selection of the Code 
Authority. 

Section 7. If the Administrator shall determine that any action 
of a Code Authority or any agency thereof may be unfair or unjust 
or contrary to the public interest, the 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 i^ending 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 it^ original or modified form. 

Section 8. The Code Authority shall have the following further 
powers and duties : 

(a) To use its best efforts to insure the execution of the provisions 
o,f this Code and provide for the compliance of the Industry with 
the provisions of the Act. 

(b) To adopt bylaws and rules and regulations for its procedure 
and for the administration of the Code. 

(c) To obtain from members of the Industry through an impartial 
agency such information and reports as are required for the adminis- 
tration of the Code and to provide for submission by members of 
such information and reports as may be necessary for the purposes 
recited in Section 3 (a) of the Act; which information ancl reports 
shall be submitted to the Administrator and/or such Government 
agencies as the Administrator may designate provided that nothing 
in this Code shall relieve any member of the Industry of existing 
obligations to furnish reports to any Government agency. All sta- 
tistics, data and information filed pursuant to the pro^asions of the 
Code, shall be deemed confidential and shall not be disclosed to any 
member of the Industry in other than composite form, unless dis- 
closure in detail shall be deemed to be essential in order to effectuate 
the policies of Title I of the Act. 

(d) To take such action as may be available to it to secure from 
members of the Industry an equitable and proportionate payment of 
the reasonable expenses of maintaining the Code Authority and its 
activities subject to review by the Administrator. 

(e) To cooperate with the Administrator in regulating the use 
of any N.E.A. insignia solely by those members of the Industry who 
are complying with this Code. 

(f) The Code Authority shall be deemed to have discharged its 
full duty under the Code with respect to any violation or alleged 
violation of the Code when it shall have exercised such powers as 



174 

are at the time legally conferred upon it and in the event of its 
inability to legally enforce compliance with the provisions of the 
Code shall have certified the facts available to it with respect to 
such violation or alleged violation to the Administrator or other 
appropriate Governmental Authority. 

Article VII — Trade Practices 

Section 1. Wherever used in the Code the terms hereinafter in 
this Section 1 defined shall, unless the context shall otherwise clearly 
indicate have the respective meanings hereinafter set forth. The 
definition of any such term in the smgular shall apply to the use 
of such term in the plural and vice versa. 

(a) The term "period of free credit" means the period of time 
between the date of a shipment of a product to the purchaser of 
such product and the date from and after which such purchaser 
shall be required to pay interest on the purchase price of such 
product or any part thereof which shall not have been paid prior to 
the expiration of such period. 

(b) The term " date of invoice " means the date of the invoice of 
any product. 

(c) The term " discount for early payment " means the amount of 
the deduction allowed for the payment of an invoice of products 
before the expiration of the period of free credit in respect thereof. 

Section 2. Each member of the Industry shall within ten (10) 
days after written rec^uest by the Code Authority, and subject to 
the provisions of Section 4 hereof, publish and file with the Secre- 
tary or Assistant Secretary of the Code Authority a schedule of its 
prices applying to acknowledged standard frogs, switches, standard 
parts thereof and appurtenances. From and after the expiration of 
such ten (10) days, each member shall publish and at all times main- 
tain on file with the Secretary or Assistant Secretary of the Code 
Authority a list showing selling prices for such standards and shall 
not make any change in such prices except by the publishing and 
filing by such member with the Secretary or Assistant Secretary of 
the Code Authority of a new list of such prices, which new list after 
filing shall become effective in seven (7) days but not prior thereto. 
The prices so filed shall be f.o.b. such member's plant or plants, and 
except to meet existing competition shall be not less than the cost 
of such product to such member determined by a method to be estab- 
lished by the Code Authority and approved by the Administrator. 

All prices so filed shall be published.^ 

Section 3. No product designated in any member's list of prices 
so filed shall be sold by such member of the Industry to any 
purchaser. 

(a) at a price f.o.b. any of its plants other than the applicable 
price filed by such member at said plant, or 

(b) at a price f.o.b. point of delivery to the purchaser other than 
such member's filed price with carrying charges at published tariff 
rates added; provided, however 

(c) That selling below such prices filed by such member to meet 
competition by a competitor whose prices do not violate this Code 

* See Paragraph 2 of order approving this Code. 



175 

on such designated products on which such member or any member 
has filed prices (i.e., selling at a price below such filed prices which 
will give the purchaser the same net price as that provided by the 
price of any other member of the Industry, taking into consideration 
any advantages accruing to the purchaser on account of its partici- 
pation in transportation charges) shall not constitute a violation of 
the Code. 

Section 4. The Code Authority subject to the disapproval of the 
Administrator shall determine what are acknowledged standard 
frogs, switches, standard parts thereof and appurtenances pur- 
chased or being considered by two or more purchasers within the 
contemplation of Section 2 of this Article on which prices shall 
be filed. 

Section 5. Products of the Industry that are not determined as 
standard by the Code Authority subject to the disapproval of the 
Administrator are to be regarded as " special " and be subject to 
the following conditions: No member of the Industry will sell 
any special product to any purchaser (a) at a price f.o.b. any of 
its plants less than the cost of such product, determined by a method 
to be established by the Code Authority subject to the approval of 
the Administrator to such member at said plant, or (b) at a price 
f.o.b. point of delivery to the purchaser less than the said cost of 
such product to such member with carrying charges at published 
tariff rates added; provided, however, (c) that selling below cost 
to meet existing competition in price by a competitor whose prices 
do not violate this Code on products of equivalent specifications 
shall not constitute a violation of the Code; and, provided (d) that 
selling below cost in order to dispose of any obsolete items or mate- 
rials shall not be deemed a violation of the Code. 

Section 6. Whenever any member of the Industry shall file with 
the Code Authority a written complaint alleging that any other 
member of the Industry has made a sale of a product at a price 
which constitutes a violation of the Code and the Code Authority 
shall declare by a vote of three-fourths of all of its members entitled 
to vote that said complaint appears to be justified the Code Author- 
ity shall have power to investigate the price at which said sale shall 
have been made. No member of the Code Authority shall vote upon 
any question involving a violation of the Code by the member of 
the industry represented by such member. 

Section 7. For all the purposes of these sections 1 to 7 a delivery 
of any product made pursuant to a contract of sale shall be regarded 
as a sale thereof made at the time of the making of such contract 
and a sale made by any member of the Industry indirectly through 
any affiliated company of such member shall be deemed to be a sale 
made by such member. 

Article VIII — Unfair Practices 

The following described acts shall constitute unfair practices and 
any member of the Industry who shall directly or indirectly through 
any officer, employee or agent or representative, knowingly use or 
employ any such unfair trade practice shall be guilty of a violation 
of the Code. 



176 

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

(b) 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 confi- 
dential within its organization, other than information relating to 
the violation of any provisions of the Code. 

(c) Using or substituting without adequate compensation any more 
costly materials superior in quality to that specified by the purchaser 
of any product or using or substituting any material or any method 
of manufacture not in accord with any applicable law, rule or regula- 
tion of any governmental authority. 

(d) 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 m.oney 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. 

(e) Publishing advertising (whether printed, radio, display or of 
any other nature), which is misleading or inaccurate in any material 
particular, or in any way misrepresenting 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. 

(f) Attempting to induce the breaching of an existing contract 
between a customer or source of supply; nor shall any such member 
interfere with or obstruct the performance of such contractual duties 
or services. 

(g) Aiding or abetting any individual, firm, association, corpora- 
tion or other form of enterprise in any unfair practices. 

(h) Making or giving to any purchaser of any product any 
guarantee or protection in any form against decline in the market 
price of such product. 

(i) Knowingly withholding from or inserting in any quotation or 
invoice any statement that makes it inaccurate in any material 
particular. 

(j) Branding or marking or packaging 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. 

(k) Kendering to any purchaser of any product in or in connec- 
tion with the sale of such product any unusual service, unless fair 
compensation shall be paid by such purchaser. 



177 

(1) Failing to invoice products manufactured pursuant to order 
or contract after such products have been held for thirty days after 
specified shipping date. 

(m) AccejDting an order for the products of the Industry without 
a specified delivery date within twelve months from the date of order 
except orders in connection with specific construction contracts ex- 
tending beyond a period of twelve months from date of order. 

(n) Shipping of goods on consignment, except under circum- 
stances to be defined by the Code Authority, subject to approval 
by the Administrator, where peculiar circumstances of the Industry 
require the practice. 

(0) Postdating and Predating. — Postdating or predating of quo- 
tations, orders, invoices, statements, or other sales documents. 

(p) The standard terms of credit and payment shall be as here- 
inafter set forth, provided, however, that the Code Authority, sub- 
ject to the disapproval of the Administrator, shall have power from 
time to time to modify, waive or supplement such standard terms of 
credit and payment by regulations, a copy of which shall be filed 
with the Secretary and mailed to each member of the Industry. 
Except in the case of sales made to, or contracts of sale entered into 
with government agencies, in respect of which such government 
agencies shall impose other terms of credit and payment, no mem- 
ber of the Industry shall allow more liberal terms of credit and pay- 
ment than those at the time in effect under this Section and such 
regulations. Except as aforesaid all invoices for products sold 
by any member of the Industry after the effective date of the Code 
shall bear interest from and after the expiration of the period of 
free credit at the rate of six per cent (6%) per annum. 

Maximum Rates of Discount for Early Payment : In the case of 
products shipped from plants located east of the Mississippi River to 
Pacific Coast Ports and which shall be invoiced from such plants — 1/2 
of 1%, if the invoice of such products shall be paid within 25 days 
from the date of such invoice; in all other cases — i/o of 1%, if the in- 
voice of such products shall be paid within 10 days from the date of 
such invoice ; provided, however, in the latter cases that any member 
of the Industry may allow such discount of i/^ of 1% for payment 
within 10 days on the basis of settlements three times in each month, 
as follows: 

(1) On invoices for products dated from the 1st to the 10th, in- 
clusive, in any month, such discount may be allowed on pajanent 
of such invoices on or before the 20th of such month ; 

(2) On invoices for products dated from the 11th to the 20th, 
inclusive, in any month, such discount may be allowed on payment 
of such invoices on or before the 30th of such month; and 

(3) On invoices for products dated from the 21st to the end of 
any month, such discount may be allowed on payment of such in- 
voices on or before the 10th of the next following month. 

Any discount allowed in accordance with the provisions of this 
Section shall apply only to the invoiced value of the products 
specified therein and not to any part of the transportation charges 
on such products. 

Maximum Periods of Free Credit : In the case of products shipped 
from plants located east of the Mississippi River to Pacific Coast 



178 

poxVs and which shall be invoiced from such plants — 45 days; in 
all other cases — 30 days. 

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. 

Section 2. Subject to the approval of the Code Authority, the 
exceptions established by this Article shall apply also to sales or 
shipments of products of this Industry actually used and directly 
traceable to manufacture for export trade. 

Article X — Amendments — Termination 

Section 1. The Code may be amended at any time in the manner 
hereinafter provided. Amendments may be proposed by the Code 
Authority by vote of a majority of the members thereof at the time 
in office or other representative group of members of the Industry. 
Amendments so proposed shall be submitted to a meeting of the 
assenting members of the Industry which shall be called for such 
purpose and be based upon application to the Administrator and 
such notice as he may specify. If at such meeting members having 
the right to cast at least 75% of all the votes that might be cast at 
such meeting, if all the members were present thereat, shall vote in 
favor of the adoption of such amendment, such amendment shall be 
submitted by the Code Authority to the Administrator. Every such 
amendment shall take effect as a part of the Code upon the adoption 
thereof by the said members of the Industry, as above provided, on 
the approval thereof by the Administrator. 

The Code 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 in Title I of the National Industrial Recovery Act is 
ended. 

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 
regulation issued under said Act. 

Article XI — General Provisions 

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

Article XII — Effective Date 

This Code shall become effective on the date upon which the Code 
is approved by the President, pursuant to the National Industrial 
Recovery Act. 

Approved Code No. 383. 
Registry No, 15U2-1-01. 



Approved Code No. 386 
CODE OF FAIR COMPETITION 

FOR THE 

UMBRELLA FRAME AND UMBRELLA HARDWARE 
MANUFACTURING INDUSTRY 

As Approved on April 6, 1934 



ORDER 



Approving Code of Fair Competition for the Umbrella Frame 
AND Umbrella Hardware 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 Umbrella Frame and Umbrella Hardware 
Manufacturing Industry, and hearings having been duly held thereon 
and the annexed report on said Code, containing findings with respect 
thereto, having been made and directed to the President : 

NOAV, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A. dated December 
30, 1933, and otherwise ; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and 
purposes of said Title of said Act; and do hereby order that said 
Code of Fair Competition be and it is hereby approved; provided, 
however, that the provisions of Article VII, (Section 1) insofar as 
they prescribe a waiting period between the filing with Code Author- 
ity and the effective date of revised price lists or revised terms and 
conditions of sale be and they are hereby stayed pending my further 
order either within a period of sixty days from the effective date 
of this Code or after the completion of a study of open price 
associations now being conducted b}' the National Recovery Admin- 
istration; provided, further, that Section 7, Article IV, be deleted 
from the Code ; provided, further, that Section T, Article V, be and 
is hereby stayed pending my further order either Avithin a period of 
sixty days from the effective date of this Code or after a completion 
of study of homeAvork provisions now being conducted by the 
National Recovery Administration ; provided, further, that Section 
10, Article VI, be and is hereby stayed pending my further order, 
and/or until a study of insignia provisions, now being conducted by 

51564° 482-43 -34 (179) 



180 

the National Recovery Administration, is completed; provided, fur- 
ther, that Section 1, Article VI be deleted and the following substi- 
tuted therefor: 

" Section 1. There shall forthwith be established a Code Authority 
consisting of six (6) members. 

"Three (3) to be elected by members of the Association; two (2) 
to be elected by members of the Industr}- who are not members of 
the Association. In the event that either group fails to elect their 
members to the Code Authority, the Administrator shall, not later 
than ten (10) days from the approval of the Code, make such 
appointments, to hll the vacancies; the sixth (6th) member is to be 
unanimously elected by the five (5) aforementioned members. In 
the event the five (5) members so elected or appointed shall fail to 
agree on the sixth (6th) member as set forth, the Administrator 
shall not later than thirty (30) days after the approval of the Code 
make such appointment to complete the Code Authority. In addition 
to the membership as above provided, there may be not to exceed 
three (3) members to be appointed by the Administrator, without 
vote, to serve a period of six (6) to twelve (12) months; provided, 
further, that the continued participation of the National Association 
of Umbrella Frame and Umbrella Hardw^are Mainifacturers in the 
Code Authority, after thirty (30) days from the effective date of 
this Code, shall be contingent upon its amending its Constitution 
and By-Laws to the satisfaction of the Administrator." 

Hugh S. Johnson, 
AdTTiinistrator for Induistria]. Recovery, 

Approval recommended : 
A. E. Glancy, 
Division Admiivistrafor. 

Washington, D.C, 

Ap'il 6, 19 3 ^. 



REPORT TO THE PRESIDENT 

The President, 

The Whf'fe House. 
Sir: This is a report on the Code of Fair Competition for the 
Umbrella Frame and Umbrella Hardware Manufacturing Industry, 
the hearing having been conducted thereon in Washington, D.C, on 
January 30, 1934, in accordance with the provisions of the National 
Industrial Recovery Act. 

RESUME OF CODE AS TO HOURS AND WAGES 

This Code provides that eight (8) hours shall constitute the normal 
number of working hours per day, fort}^ (40) hours the normal 
number of working hours per week, except that employees may work 
up to forty-eight (48) hours per week for a period not exceeding 
six (6) weeks during a peak period of September 1, to December 31. 

These provisions are applicable to all employees except traveling 
salesmen; watchmen, who shall be permitted to work not exceeding 
thirty-six (36) hours per week and forty-eight (48) hours per week 
in alternate weeks, nor more than an average of forty-two (42) hours 
per week in any two weeks period; and persons employed in a mana- 
gerial or executive capacity receiving not less than $35.00 per week. 

The above mentioned hour limitation shall not apply to any em- 
ployee in emergency maintenance or emergency repair work involving 
breakdowns or protection of life and property. 

The rates of pay provided for production labor are 40^ per hour 
for both men and women. Learners may be paid 80% of the wages 
herein provided to be paid, but the number of learners during any 
calendar month shall not exceed 5% of the total number of factory 
employees. Persons whose earning capacity is limited because of 
age, physical or mental handicap, or other infirmit}', may be em- 
ployed on light Avork at a wage below the minimum, if the em])loyer 
obtains from the state authorit}^, designated by the United States 
Department of Labor, a certificate authorizing such persons employ- 
ment at such wages and for such hours as shall be stated in the 
certificate. Time and one-half will be paid production emploj^ees 
for hours worked in excess of the number of hours specified herein- 
above. All other employees will be paid at not less than $16.00 per 
week, except that oflice boys may be paid not less than $13.00 per 
week, provided that the number of such office boys shall constitute 
not more than 5% of the total number of office employees of any 
one employer, but in any case each employer shall be entitled to 
an office bo3^ 

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. 

(181) 



182 

GENERAL STATEMENT 

The Umbrella Frame and Umbrella Hardware Industry as defined 
in the Code includes the mamifacture and sale of Umbrella Frames 
and Umbrella Hardware, and its customers are confined to the 
various umbrella manufacturers of the country. 

The in\estment in the Industry is approximately $3,500,000 and 
the number of wage earners in normal times is about 600 people, 
with an estimated annual payroll of $500,000. 

In 1929, wdiich is considered a normal year, operations were at a 
rate of approximately 60% of capacity, with a value of production 
of about $1,324,000. 'The sales of the Industry declined 46% from 
1929 to 1933. 

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 Kecovery 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 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 })roduction (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, bj' reducing 
and relieving unemi:)loyment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

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

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

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

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

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



183 

For these reasons, therefore, I have approved this Code; pro- 
vided, however, that the provisions of Article VII, (Section 1) 
insofar as they prescribe a waiting period betv\een the filing with 
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 j^eriod 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; provided, further, that Section 7, Article IV, be 
deleted from the Code; provided, further, that Section 7, Article V, 
be and is hereby stayed pending my further order either within a 
period of sixty days from the effective date of this Code or after a 
comj)letion of stud,y of homework provisions now being conducted 
by the National Recovery Administration; provided, further, that 
Section 10, Article VI, be and is hereby stayed pending my further 
order, and/or until a study of insignia provisions, now being con- 
ducted by the National Recover}^ Administration, is completed; 
provided, further, that Section 1, Article A-^I be deleted and the 
following substituted therefor : 

" Section 1. There shall forthwith be established a Code Authority 
consisting of six (G) members. 

•• Three (3) to be elected by members of the Association; two (2) 
to be elected by members of the Industry who are not members of 
the Association. In the event that either group fails to elect their 
members to the Code Authority, the Administrator shall, not later 
than ten (10) clays from the approval of the Code, make such ap- 
pointments, to fill the vacancies; the sixth (6th) member is to be 
unanimously elected by the five (5) aforementioned members. In 
the event the five (5) members so elected or appointed shall fail 
to agree on the sixth (Gth) member as set forth, the Administrator 
shall not later than thirty (30) days after the approval of the Code 
make such appointments to complete the Code Authority. In addi- 
tion to the membership as above provided, there may be not to 
exceed three (3) members to be appointed by the Administrator, 
Avithout vote, to serve a period of six (6) to twelve (12) months; 
provided, further, that the continued participation of the National 
Association of Umbrella Frame and Umbrella Hardware Manufac- 
turers in the Code Authority after thirty (30) days from the effec- 
tive date of this Code, shall be contingent upon its amending its 
Constitution and By-Laws to the satisfaction of the Administrator." 
Respectfully, 

Hugh S. Johxsox, 

Administrator. 

April 6, 1934. 



CODE OF FAIR COMPETITION FOR THE UMBRELLA 
FRAME AND UMBRELLA HARDWARE MANUFACTUR- 
ING 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 Umbrella Frame and Umbrella Hard- 
ware Manufacturing Industry, and shall be the standard of fair 
competition for this Industry, and shall be binding upon every 
member thereof. 

Article II — Definitions 

Section 1. The term *' The Industry " means and includes the 
business of manufacture and sale by the manufacturer of umbrella 
frames and umbrella hardware and excludes the business of inere 
assembling and/or jobbing. A '" Member of the Industry " within 
the meaning of this Code includes, but without limitation, any per- 
son, firm, or corporation or other form of enterprise manufacturing 
umbrella frames and umbrella hardware. 

Section 2. The terms " President ", "Act ''. and "Administrator ", 
as used heroin mean respectively, the President of the United States, 
Title I of the National Industrial Recovery Act, and the Adminis- 
trator for Industrial Recovery. 

Section 3. The term "Association " means the National Associa- 
tion of Umbrella Frame and Umbrella Hardware Manufacturers. 

Section 4. The term " Employee ", as used herein, includes any 
person engaged in any phase of the Industry in any capacity, irre- 
spective of the method of the payment of such person's wages. 

Section 5. The term " Employer "', as used herein includes anyone 
by whom any such employee is compensated or employed. 

Section 6. The term " Code Authority ", as used herein means 
the group or its successors as provided for by Article VI. 

Section 7. The term " Effective Date of the Code ", whenever 
used herein, means the first Monday after the date on which this 
Code shall have been approved by the Administrator. 

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 twenty- 
four (24) hour ]3eriod, except as herein otherwise provided. 

(a) During the period of September 1 to December 31, a mem- 
ber of the Industry may extend the hourly schedule of work for 
employees up to forty-eight (48) hours per week for a period not 
exceeding six (0) weeks provided that all such employees be ])aid not 
less than one and one-half (IV2) times their normal rate of wages 

(184) 



185 

for hours worked in excess of forty (40) hours per week or eight 
(8) hours per day. All such special cases of overtime work shall 
first be i-eported to the Code Authority. 

Sectiox 2. Xo person employed in clerical or office work 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. 

Section 3. The provisions of this Article shall not apply to per- 
sons employed in a managerial or executive capacity who earn not 
less than thirty-five ($35.00) dollars per week, or to traveling 
salesmen. 

(a) The maximum hours fixed in Sections 1 and 2 shall not apply 
to any emplo3'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-half (11/2) times his or 
her normal rate shall be paid for hours worked in excess of the 
maximum herein provided. 

Section 4. The provisions of thig Article shall not apply to watch- 
men who sliall be employed alternately, and who shall not work or 
be permitted to work in excess of thirty-six (36) hours per week, 
and forty-eight (48) hours per week in alternate weelcs, nor more 
than an average of forty-two (42) hours per week in any two weeks 
period. 

Section 5. No employer shall knowingly permit any employee 
to work for any time, which totaled with that already performed 
with another employer or employers in this Industry, exceeds the 
maximum permitted herein. 

Article IV — Wages 

Section 1. No employee shall be paid less than at the rate of forty 
(40) cents per hour, except as herein otherwise provided. 

(a) No clerical or office employee shall be paid less than at the rate 
of sixteen ($16.00) dollars per week, provided, however, that office 
boys shall be paid not less than thirteen ($13.00) dollars per week, 
and provided, further, that the number of such office boys shall con- 
stitute not more than five (5%) per cent of the total number of office 
employees of any one employer, but in any case each employer shall 
be entitled to one office boy. 

Section 2. This Article establishes a minimum rate of pay irre- 
spective of v\diether an employee is actually compensated on a time 
rate, 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 emploj'ers who have not heretofore made such adjust- 
ments, 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 or weekly rates of 
pay be reduced. 

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 man they displace. The Code Authority 



186 

shall 'within ninety (90) clays after the effective date of this Code 
file Avith the Administrator a description of all occupations in the 
Industry, indicating the number and sex of the employees in each 
occi]})ation. 

iSixTlox 5. A person whose earning caj^acity is limited because of 
age, physical or mental handicap, or other infirmit}', may be em- 
plo3^ed on light work at a wage beloAv 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 emploj-ment at such wages and for such hours 
as shall be stated in the certificate. Such Authority shall be guided 
by the instructions of the United States Department of Labor in 
issuing certificates to such persons. Each emploj-er shall file monthly 
with the Code Authority a list of all such persons employed by him, 
showing the wages paid to, and the maxinmm hours of v.ork for such 
em])loyee. 

Sectiox 6. No provision in this Article shall modify established 
])ractices or privileges as to vacation periods, leaves of absence or 
temporary absences from work heretofore granted to office emplo^-ees. 

Si:cTioN 7. Learners, who are hereby defined to be persons having 
less than six (6) weeks of experience in the Industr}-, may be paid 
eighty (80%) percent of the wages herein provided to be paid, 
provided, however, that the number of learners during any calendar 
nionth shall not exceed five (6%) percent of the total number of 
factory emplo3'ees.^ 

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 pur- 
pose of collective bargaining or other mutual aid or protection; 

(b) That no employee and no one seeking employment shall be 
required as a condition of em])loyment to join any company union 
or 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. 

Section 2. No person under eighteen (18) years of age shall be 
employed in this Industry except office employees who shall be not 
less than sixteen (16) years of age. 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 3. No employer shall reclassify employees or duties or 
occupations performed or engage in any other subterfuge for the 

» Ueleted. See paragraph 2 of order approving this Code. 



187 

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 employees during the hours and at the places of their employment. 
Standards of safety and health shall be submitted by the Code 
Authority to the Administrator within six (6) months after the 
effective date of the Code. 

Section 5. No provisions in this Code sliall supersede any State 
or Federal law which imposes upon 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 all employees. 

Section 7. No homework shall be allowed. 

Article VI — Administration 

Section 1. There shall forthwith be established a Code Authority, 
consisting of seven (7) members; four (4) to be elected by members 
of the Association, two (2) to be elected by members of the Industry 
who are not members of the Association, and the seventh (7th) to be 
elected by the six (6) aforementioned members, provided, that the 
method of election shall be subject to the approval of the Adminis- 
trator. In the event the six (6) so elected members shall fail to 
agree on the seventh member as set forth, the Administrator shall, 
not later than thirty (30) daj^s after the approval of the Code make 
such appointment to complete the membership of the Code Author- 
ity. In addition to membership as above provided, there may be 
not to exceed three (3) members of the National Recovery Adminis- 
tration, without vote, to be appointed by the Administrator, to serve 
a period of six (6) to twelve (12) months.^ 

Section 2. The Association participating in the selection or ac- 
tivities of the Code Authority shall (1) impose no inequitable re- 
strictions on membership, and (2) submit to the Administrator true 
copies of its articles of association, by-laws, regulations, and any 
amendments when made thereto, together with such other informa- 
tion as to membership, organization, and activities as the Adminis- 
trator may deem necessary to 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 
witii 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 4. 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. 

* See paragraph 2 of order approving this Code. 



188 

Such reasonable share of the expenses of administration shall be 
determined by the Code Aiithorit}', subject to review by the Admin- 
istrator, on the basis of volume of business and/or such other 
factors as may be deemed equitable. 

kSectiox 5. In order to assist in making effective the reports from 
the Industry and in eliminating unfair competition, the Code Au- 
thorit}' may make studies for the establishment of classifications and 
standards of qualitj^ for products of the Industry, to be submitted 
to the Administrator, and after approval b}^ him, such classifications 
and standards of quality, shall be observed by all members of the 
Industry. 

Section 6. The Code Authority shall have the following further 
powers and duties : 

(a) To collect from the members of the Industry through an ini- 
pai'tial agent with full protection to each member as to the con- 
fidential nature of the material all data and statistics required by the 
Administrator or pertinent to the effectuation of Title I of the Na- 
tional Industrial Recovery Act and said agent shall compile the 
data and statistics and furnish the Code Authority summaries 
thereof, which shall be furnished to the Administrator and to the 
members of the Industry, all in such form and manner as the Code 
Authority shall reasonably prescribe subject to the approval of the 
Administrator. 

(b) In addition to information required to be submitted to the 
Code Authoritj^ all or anj^ 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 
obligation to furnish reports to Government agencies. 

(c) To represent the Industry in conference with the Administra- 
tor with respect to the application of this Code and of said Act, and 
an}^ regulations issued thereunder. The Administrator ma}^ desig- 
nate representatives to participate in such conferences, who shall 
have access to all data and statistics collected by said agent as above 
provided. The Code Authority or its authorized committee or 
agency shall hold itself in readiness to assist and keep the Adminis- 
trator fully advised, and to meet with the Administrator s repre- 
sentative from time to time as required to consider and study any 
suggestion or proposals presented upon belialf of the Administrator 
or any member of the Industry regarding the operation, obserA'ance, 
and administration, or otherwise, of this Code. 

(d) To receive complaints of violations of this Code, make investi- 
gation thereof, provide hearings thereon and adjust such complaints, 
and bring to the attention of the Administrator for prosecution, 
recommendations, and information relative to unadjusted violations. 

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

Section 7. The Code Authority shall use such 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 



189 

agencies shall at all times be subject to and comply with tha pro- 
visions hereof.^ 

Section 8. To secure from members of the Industry an equitable 
and proportionate payment of the reasonable expense of maintaining 
the Code Authority and its activities. 

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 
anyone for any act of any other member, officer, agent or employee 
of the Code Authority. Nor shall any member of the Code Au- 
thority, 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 10. All products manufactured and sold subject to the 
provisions of this Code shall bear the N.R.A. insignia to symbolize 
to purchasers of said products the conditions under which they were 
manufactured. The Code Authority shall have the exclusive right 
in this Industry to issue and furnish said insignia to members 
thereof. The Code Authority, subject to the approval of the 
Administrator, shall establish such rules and regulations and such 
appropriate machinery as are necessary for the issuance of such 
insignia and shall also provide in these rules and regulations for the 
inspection, examination, and supervision of the practices of employers 
using such insignia as to observance of the provisions of this Code 
for the ])urpose of ascertaining the right of said employer to the 
continued use of said insignia, of protecting purchasers in relying 
on said insignia and of insuring to each individual employer that 
the symbolism of said insignia will be maintained by virtue of com- 
pliance with the practices herein contained and by all employers 
in the Industry. The right to the continued use of said insignia 
shall not be withdrawn by the Code Authorit}^ except upon approval 
by the Administrator. The issuance, withdrawal, and charge made 
for such insignia hy the Code Authority shall at all times be subject 
to sujDervision and order of the Administrator, and the charge made 
therefor 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 herein above 
set forth, and in no event to be in excess of one (10) cent each.* 

Section 11. If the Administrator shall determine that any action 
of a Code Authority or any agency thereof is unfair or unjust or 
contrary to the public interest, the Administrator may require that 
such action be suspended 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 (30) days' notice to him of intention to proceed 
with such action in its original or modified form. 

Article VII— Prices and Terms of Payment 

Section 1. Each member of the Industry shall within ten (10) 
days after the effective date of this Code file with the Code Authority 

" See paragrnph 2 of order approving this Code. 
* See paragraph 2 of order approving this Code. 



190 

a price schedule which shall be open to all buyers and clearly show 
prices for each coniinodit}'', produced by him or it including dis- 
counts, allowances, and all terms and conditions of sale. Thereafter 
each member of the Industry shall at all times maintain on file with 
the Code Authority current price schedules for each commodity, pro- 
vided, however, revised price schedules may be filed from time to 
time thereafter by any member of the Industry to become effective 
ten (10) days thereafter. Members of the Industry shall not sell 
commodities at prices other than those shown on the latest price 
schedule so filed. ^ 

Section 2. The Code Authority shall cause to be formulated an 
accounting system and methods of cost finding and/or estimating 
capable of use b}' all members of the Industry, subject to the ap- 
proval of the Administrator. After such system and methods have 
been formulated, full details concerning them shall be made avail- 
able to all members. Thereafter all members shall determine and /or 
estimate costs in accordance with the principles of such methods. 

Section 3. 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 
maintenance of the provisions of this Code, the Code Authority may 
cause to be determined the lowest reasonable cost of the product 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 unfair trade practice for 
any member of the Industry to sell or offer to sell an}^ product 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 bu3'er will pay less therefor than the lowest reasonable cost of 
such product. 

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 YIII — Unfair JNIethods of Competition 

Section 1. For all purposes of this Code the acts described in 
this Article shall constitute unfair trade practices. Any member 
of the Industry Avho shall, directly, indirectly, or through any 
officer, emplo3^ee, agent or representative, knowingly use, employ, 
or permit to be employed any of such unfair practices shall be 
guilt}" of a violation of the Code. 

(a) 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 anj' 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. The 
foregoing provisions shall not be construed to prohibit free and gen- 
eral distribution of articles commonly used for advertising except 

* See paragraph 2 of order approving this Code. 



191 

so far as such articles are actually used for commercial bribery 
as herein defined. 

(b) No member of the Industry shall attempt to induce the breach 
of an existing contract between a competitor and his employee or 
customer or source of supply; nor shall any such member interfere 
with or obstruct the performance of such contractual duties or serv- 
ices. Nothing in this Eule shall qualify Section 7 (a) of the Act, 
or obstruct the free exercise of the rights of collective bargaining 
therein guaranteed. 

(c) No member of the Industry shall secretly offer or make any 
payment or allowance or 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. 

(d) No member of the Industry shall defame his comi^etitors by 
falsely imputing to them dishonorable conduct, inability to perform 
contracts, questionable credit standing, or by any other false repre- 
sentation, or the false disparagement of the grade or quality of their 
goods. 

(e) No member of the industry shall make false reports to cus- 
tomers concerning the capacity, production, inventories, sales, orders 
or shipments of other Members of the Industry. 

(f) No member of the Industry shall make or give to any pur- 
chaser of any product any guaranty of protection in any form 
against the decline in the market price of such product. 

(g) No member of the Industry shall ship goods on consign- 
ment, or employ any means directly or indirectly by subterfuge 
or otherwise to defeat the intent of this paragraph. 

(h) No member of the Industry shall mark, brand or pack an}'' 
prodiict in any manner which has the tendency to mislead or 
deceive customers or prospective customers as to the brand, grade, 
quality, size, quantity, origin, material content, or preparation of 
any product of the Industry sold or offered for sale. 

(i) No member of the Industry shall state in the invoice of any 
product as the date thereof a date other than the actual date of the 
shipment of such product or of the original contract of sale. 

(j) No member of the Industry shall aid or abet any person, firm, 
association, or corporation to use any unfair trade practice. 

Article IX— IModification 

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 Presi- 
dent to cancel or modify his approval of this Code or any conditions 
imposed by him upon his approval thereof. 

Section 2. In order to enable the Industry to conduct its opera- 
tions, subject to the provisions of this Code; to establish fair trade 
practices within the Industry, and with those dealing with the 



192 

Industry and otherwise to efFex?tiiate the purposes of Title I of the 
National Industrial Recovery Act, supplementary provisions of this 
Code or additional Codes may be submitted from time to time for 
the approval of the President. 

Article X — Monopoly 

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. j 

Article XI — Price Increases 

Section 1. Whereas the policy of the National Industrial Recov- 
ery Act to increase real purchasing power will be made more diffi- 
cult 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 
w^hen made, such increases should, so far as possible, be limited to 
actual additional increases in the seller's costs. 

Article XII — Effective Date 

Section 1. This Code shall be effective on the first Monday after 
the date on which it shall have been approved by the President. 



Approved Code No. 386. 
Registry No. 1114-30. 



O 



Approved Code No. 387 
CODE OF FAIR COMPETITION 

FOR THE 

SHOE MACHINERY INDUSTRY 

As Approved on April 6, 1934 



ORDER 



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

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

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval recommended. 
A. R. Glancy, 

Division Administrator. 

Washington, D.C, 

A^ml 6, 1934. 

51506° 482-41 34 (193) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Shoe Machinery Industry, as revised after a Public Hearing held in 
Washington, D.C., on the 22nd day of Januar3^ 1934, in accordance 
with the provisions of the National Industrial Recover}^ Act. 

PROVISIONS AS TO HOURS AND AVAGES 

Employment is limited to 8 hours per day and 40 hours per week 
and 6 days in any 7 day period, with the exception of employees 
engaged in emergency maintenance or emergency repair work and 
executive or supervisory employees and research technicians, who 
now receive $35.00 or more per week or traveling salesmen or 
salaried field service men. Engineers and firemen are permitted io 
work 44 hours and watchmen may be employed 50 hours per week. 
To provide for emergency production demands overtime is allowed 
to the extent of 5 hours in any one week. 

Overtime in excess of 8 hours in any 24 hour period or in excess 
of 40 hours in any 7 day period Avill be paid for at one and one-half 
times the normal rate. 

Minimum wages of 40 cents per hour for males and females are 
established and when females perform substantially the same Avork 
or replace males thej'' shall receive the same rate of pay as the 
males. Office and clerical emploj^ees are to receive a minimum rate 
of $15.00 per week except that office boys and girls may be paid at the 
rate of $12.00 per week. 

ECONOMIC EFFECT OF THE CODE 

Before the adoption of the reduced hourly schedule in 1933. this 
Industry averaged 42.5 hours per week. Its forty-three companies 
emploj^ normally 9,000 persons. Adoption of the 4<> iiour week would 
increase employment to about 9,560 persons or an increase of about 
6 percent. 

The invested capital of the Industry is about $94,000,000 and the 
average annual sales for the past five vears have been about 
$38,000,000. 

FINDINGS 

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

I find that : 

(a) Said Code is Avell designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 

(194) 



195 

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

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

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant 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 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. 
April 6, 1934. 



CODE OF FAIR COMPETITION FOR THE SHOE 
MACHINERY 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 Shoe Machinery Industry, and shall be 
the standards of fair competition for such Industry and shall be 
binding upon every member thereof. 

Article II — Definitions 

The term " Industry ", as used herein, shall be defined to mean 
the manufacture, repair or rebuilding, for sale or lease, of ma- 
chinery, mechanisms, and mechanical devices, used in the manufac- 
turing or repairing of footwear. 

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

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

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

The term " Institute ", as used herein, signifies the Shoe Machinery 
Institute. 

The term " Student Learner ", as used herein, shall designate 
anyone enrolled as a student at an institution of learning, who works 
in the Industry part time, and who is not regularly employed in 
productive labor. 

The term "Apprentice ", as used herein, shall designate anyone 
regularly 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, 
Title I of the National Industrial Recovery Act, and the Admin- 
istrator for Industrial Recovery. 

The term " Effective Date ", as used herein, shall be the second 
Monday after the approval of this Code by the President. 

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, except as herein otherwise provided. 

(196) 



197 

Section 2. To cover an emergency production demand which can 
not be met by hiring additional employees, an allowance above the 
maximum hours fixed in Section 1 of this Article, of not to exceed 
five (5) hours in any one (1) week shall be permitted; provided 
that not less than one and one-half (1^) times his regular rate of 
pay shall be paid for such hours. 

Section 3. Watchmen shall not be permitted to work in excess of 
fifty-six (56) hours per week. 

Section 4. The maximum hours provisions of Section 1 of this 
Article shall not apply to executive or supervisory employees and 
research technicians who now receive thirty-five ($35.00) dollars 
or more per week, or to traveling salesmen, or salaried field service 
men. 

Section 5. The maximum hours provisions of Section 1 of this 
Article shall not apply to any emplo3'ee on emergency maintenance 
or emergency repair work involving breakdown or protection of life 
or property, but in any such special case, at least one and one-half 
(114) times his regular rate shall be paid for hours worked in 
excess of the maximum herein provided. 

Section 6. No employee shall be regularly employed more than 
six (6) days in any seven (7) day period. 

Section 7. No employer shall Imowingly 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. 

Section 8. Employers who personally perform manual work or 
are engaged in mechanical operations shall not exceed the prescribed 
maximum number of hours. 

Section 9. The maximum hours provisions of Section 1 of this 
Article, shall not apply to engineers and firemen who shall be per- 
mitted a ten (10%) percent tolerance over the maximum hours 
provisions of Section 1 of this Article. 

Article IV — Wages 

Section 1. (a) No employee, except as hereinafter provided, shall 
be paid less than at the rate of forty (40) cents per hour. 

(b) No clerical or office employee shall be paid less than at the rate 
of fifteen ($15.00) dollars per week; provided, however, that office 
boys, office girls, and messengers may be ] aid not less than eighty 
(80%) percent of the fifteen ($15.00) dollar rate herein fixed; but 
the total number of such office boys, office girls and messengers so 
paid shall not exceed five (5%) percent of the total number of office 
and clerical employees of the employer, but in any case such employer 
shall be entitled to employ and so pay at least one (1) such employee. 

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

Section 3. Prompt adjustments must be made in all rates in w^hich 
equitable adjustments have not been made or are not in effect. In no 
case shall the hourly or piece rates be reduced as a result of adjust- 
ments in the hourl}^ working schedules. Each member shall report 
the action taken to the Code Authority within thirty (30) days 



198 

after the effective date and to the Administrator on request by the 
Administrator, 

Section 4. A person whose earning capacity is limited because of 
age or physical or mental handicap may be employed at a wage below 
the minimum established by this Code 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 Department of Labor in 
issuing certificates to such persons. Each employer shall file with 
the Code Authoritj^ a list of all such persons employed b}' him. 

Srx'TioN 5. Female employees performing substantially the same 
work as male emplo3''ees shall receive the same rate of pay as male 
employees; and where they replace men, they shall receive the same 
rate of pay as the men they displace. The Code Authority shall 
within ninety (90) days after the effective date of this Code file 
with the Administrator a description of all occupations in the 
Industry in which both men and women are emploj/ed. 

Section 6. Nothing contained in this Article IV shall apply to or 
affect student learners who are employed part time in the factories 
of this Industry where they receive instruction as part of their 
course of studies at an institute of learning. 

Section 7. Apprentices shall be regularly indentured for a suffi- 
cient period of time to be systematically advanced through the 
various operations in any one of the trades or occupations. The 
number oi apprentices shall not exceed a ratio of one (1) such ap- 
prentice to ten (10) competently skilled journeymen employed by the 
employer in the Industry. Copies of all apprentice contracts shall 
be filed with the Code Authority and be subject to review by the 
Administrator. 

Article V — Additional. Labor Provisions 

Section 1. (a) No person under sixteen (IG) years of age shall 
be employed in the Industry. 

(b) Within sixty (60) days after the effective date, the Code 
Authority shall compile and submit to each member and to the Ad- 
ministrator a list of operations and occupations in the Industry 
which are hazardous in nature or dangerous to health, and after 
receipt of such list no person under eighteen (18) years of age 
shall be employed by any member at such operations or occupations. 

(c) 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. 



199 

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

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

Sectiox 3. No employer shall reclassify employees or duties of 
occupations performed or engage in any other subterfuge for the 
purpose of defeating the purpose 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 
approval within six (6) months after the effective date of this Code. 

Section 5. No provision in this Code shall supersede any State or 
Federal law which imposes on employers more stringent requirements 
as to age of employees, wages, hours of work, or as to safety, health, 
sanitarj' or general working conditions, or insurance, or fire pro- 
tection, than as imposed by this Code. 

Section G. The posting provisions of this Code sliall be in 
accordance with orders by the President or the Administrator. 

Article VI — Administration 

Sec'iton 1. Organization and Constitution of the Code Authority : 

(a) The Code Authority shall consist of nine (9) 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) ad- 
ditional members (without vote) to represent the Administrator 
or such groups or interests as he may designate. 

(b) Eight (8) members of the Code Authority shall be elected 
by the members of the Industry who are members of the Institute. 
This election shall be held at a meeting of the Institute, such meet- 
ing to be called by the Institute within fifteen (15) days after the 
effective date of this Code. 

(c) Notice of such meeting shall be sent to all members of the 
Institute and each member shall be entitled to such vote or votes 
as determined by the By-Laws of the Institute, said vote or votes 
to be cast in person or by proxy or by letter ballot. 

(d) A plurality of the number of votes cast shall be necessary 
for election, and individuals so elected shall serve for one (1) year, 
at the end of which time there shall be another election in the same 
manner as above set forth. 

(e) One (1) member of the Code Authority shall be elected, if 
desired, by members of the Industrj^ who are not members of the 
Institute, but who agree to pay their proportionate share of the 
expense of administration of the Code, at a meeting duly called for 
them by the Institute, within fifteen (15) days after the effective 
date of the Code. 

(f ) Every member of the Industry outside of the Institute who 
is registered with the Institute or whose identity and address can 



200 

be ascertained through diligent inquiry, shall be notified bj' the 
Institute of the time and place of such meeting by registered mail, 
at least ten (10) days in advance of the election and each of the 
non-members shall be entitled to one (1) vote, said vote to be cast in 
person, by proxy or by letter ballot. 

(g) A plurality of the number of votes cast shall be necessary 
for election and the individual so elected shall serve for one year, at 
the end of which time there shall be, if desired, another election 
held in the same manner to elect a successor. 

(h) In case the non-members of the Institute fail to elect a repre- 
sentative to serve on the Code Authority, its membership will be 
automatically reduced to eight (8) individuals. 

(i) Any individual elected to the Code Authority shall be eligible 
to re-election. 

(j) If, however, selection by the Industry is impossible for any 
reason, the members of the Code Authority shall be appointed by 
the President. Vacancies in the Code Authority shall be filled by 
elections conducted in the manner set forth above. 

Section 2. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Author- 
ity shall: (a) impose no inecfuitable restrictions on membershipj 
and (b) submit to the Administrator true copies of its articles ot 
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 Code Authority shall at all times 
be truly representative of the Industry and in other respects comply 
Avith the provisions of the Act, the Administrator may provide such 
hearings as he may deem proper; and thereafter if he shall find 
that the Code Authority is not trulj^ 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 4. 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 ma}' 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 thirtj^ (30) days' notice to him of intention to 
proceed with such action in its original or modified form. 

Section 5. Each member of the Industry shall furnish to the 
Code Authority such information and statistics regarding hours of 
operation, wages paid, and prices, as may be required by it with a 
■view to keeping the President of the United States and the Adminis- 
trator informed as to whether the Code Authority is taking appro- 
priate steps to effectuate in all respects the declared policy of the 
National Industrial Recovery Act. 

Section G. In order to provide the data necessaiy for the proper 
administration of this Code the Code Authority is authorized to 
collect from members of the Industry all data, reports, and statistics 



201 

when and as required by the President and/or the Administrator 
and/or their agent or agents and/or the Code Authority. Each such 
member shall send his confidential data signed by him or his proper 
agent to a neutral agency, bound to secrecy, designated by the Code 
Authority, in a plain envelope contained in an envelope addressed 
to the neutral agency. This neutral agency shall assemble all such 
data and present to the Code Authority only the combined totals. 
Each such member shall retain copies of his own data to be sent 
direct by him to the Administrator, if required by the latter. 
Reports submitted by the Code Authority to the President and/or 
the Administrator shall be in the form prescribed and/or approved 
by him. 

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 election of the members thereof by assenting 
to and complying with requirements of this Code, and sustaining 
their reasonable share of the expenses of its administration. The 
reasonable share of the expenses of administration shall be deter- 
mined by the Code Authority, subject to review by the Administrator, 
on the basis of volume of business and/or such other factors, aa 
may be deemed equitable. 

Section 8. In addition to the information required to be sub- 
mitted 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 (sl) of the Act, and 
nothing herein contained shall relieve anyone oi any existing obli- 
gation to furnish reports to Government agencies. 

Section 9. The Code Authority shall have the following further 
duties and powers to the extent permitted by the Act: 

(a) To adopt by-laws and rules and regulations for its proce- 
dure and for the administration of this Code. 

(b) 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 National Industrial Recovery Act and any regu- 
lation issued thereunder. 

(c) To hear complaints and attempt to adjust the same, under 
such rules and regulations as may be prescribed by the Adminis- 
trator. 

(d) To coordinate the administration of this Code with such 
codes, if any, as may be adopted by any subdivision of this Indus- 
try or any related industry, with a view to providing joint and har- 
monious action on all matters of common interest, all with the 
approval of the Administrator. 

(e) To consider proposals for amendments or modifications and 
make recommendations from time to time which amendments oi 
modifications will become effective as part of the Code, upon 
approval of the Administrator after such notice and hearing as he 
ma}^ specify. 

(f) To make rules and regulations necessary for the adminis- 
tration and for facilitating the enforcement of this Code, under such 
rules and regulations as may be prescribed by the Administrator, 
subject to the right of any affected. person to appeal to the Admin- 
istrator. 



202 

Article VII — Unfair Practices 

The following practices constitute unfair methods of competition 
for members of tlie Industry and are 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 dis]3aragement of the grade or quality of their goods, 

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

(c) Inaccurate LahelJ'uig. — The branding or marking or packing 
any goods in any manner which is intended to or does deceive or 
mislead purchasers with respect to the brand, grade, quality, quantity, 
origin, size, substance, character, nature, finish, material content 
or preparation of such goods. 

(d) Misrepresentation or False or MisJeading Advertising. — The 
making or causing or knowingly permitting to be made or published 
any false, materially inaccurate or deceptive statement by way of 
advertisement or otherwise, whether concerning the grade, quality, 
quantity, substance, character, nature, origin, size, finish, or prepara- 
tion of any product of the Industry, or the credit terms, values, poli- 
cies, or services of any member of the Industry, or otherwise, having 
the tendency or capacity to mislead or deceive customers or pros- 
pective customers. 

(e) C ommercial' Bribery. — The giving, permitting to be given, or 
directly offering to give, anything of value for the purpose of influ- 
encing or rewarding the action of any employee, agent, or representa- 
tive of another in relation to the business of the employer of such 
employee, the principal of such agent or the represented party, 
without the knowledge of such employer, principal or party. Com- 
mercial bribery provisions shall not be construed to prohibit free 
and general distribution of articles commonly used for advertising 
except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

(f ) Cash Discounts. — The allowance of a cash discount when pay- 
ment is made after the date regularly established for cash discount 
by such member; in no case shall the cash discount allowed exceed 
two (2%) percent. 

(g) 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 practices or method is unfair, providing that such adjudication 
or holding is not inconsistent with any provision of the Act or of 
this Code. 

Article VIII — General Provisions 

Section 1. Modifications. — (a) This Code and all the provisions 
thereof are expressly made subject to the right of the President, 
in accordance with the provisions of Subsection (b) of Section 10 
of the National Industrial Recovery Act, from time to time to 



203 

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 an}^ 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. 

Section 2. Nothing in this Code shall be construed as prohibit- 
ing any member of the Industr}^ from exercising all his lawful 
patent rights. 

Article IX- — IMongpolies 

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 — EFrECTi\T: Date 

This Code shall become effective on the second Monday after its 
approval b}^ the President. 



Approved Code No. 3S7. 
Kegistry No. 1399-28. 



O 



Approved Code No. 388 
CODE OF FAIR COMPETITION 

FOR THE 

SANDSTONE INDUSTRY 

As Approved on April 6, 1934 



ORDER 

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

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recover}'', 
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, 
however : 

(a) That the provisions of Article VII, Section 2, insofar as they 
prescribe a waiting period between the filing with the Code Author- 
ity and the effective date of revised schedules of prices and terms 
and conditions of sale be and they are hereby stayed r)ending 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, and 

(b) That the wages and hours established in this Code are ap- 
proved only because of competitive conditions with the Limestone 
Industry and such approval shall not constitute a precedent for any 
other Industry, and 

51568° 482-39 34 (205) 



206 

(c) That in the event of revision of the labor provisions of the 
Code of Fair Competition for the Limestone Industry, the Code 
Authority of the Sandstone Industry shall submit recoumiendations 
in respect to making like revisions of the Sandstone Code. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 

A. E. Glancy, 

Division Administrator. 

Washington, D. C, 

Ap-ril 6, 13H. 



EEPORT TO THE PEESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Sandstone Industry, a hearing on which was conducted in Washing- 
ton on the third of January, 1934, in accordance with the provisions 
of the National Industrial Recovery Act. The Code covers the 
quarrying and fabricating of sandstone for building purposes, break- 
waters, pulpstones and grindstones. 

PROVISIONS OF THE CODE AS TO WAGES AND HOURS 

This Industry is closely related to, and competitive with, the 
Limestone Industry and the hour and wage provisions are generally 
the same. The Code provides for a work week of forty hours aver- 
aged over three-month periods and limited to forty-eight hours in 
any week, six days in any week and eight hours in any twenty-four. 
Exceptions are provided for employees engaged in executive, pro- 
fessional, administrative, or supervisory work who earn Thirty-five 
Dollars per week or more, for salesmen, for watchmen with a twelve- 
hour per day and sixty-four hour per week limitation, and for firemen 
and engineers, who are allowed two hours per day and twelve hours 
per week extra. 

Truckmen, shipping clerks, plant maintenance and emergency 
crews are also excepted, but receive time and one-third for work in 
excess of eight hours per day. 

Minimum wage rates are thirty-eight cents per hour in the North 
and thirty-five cents in the South. Provision is made for handicapped 
persons, in accordance with your Executive Order. A minimum of 
Fourteen Dollars per week is provided for salaried office employees, 
except office boys and girls, who may receive eighty per cent of this 
wage and are limited to five per cent of the total office employees. 
Area agreements as to wages, reached by bona fide collective bargain- 
ing, and an Industrial Relations Board to settle labor disputes are 
provided for in the Code. 

ECONOMIC EFFECTS OF THE CODE 

Between 1929 and 1931 the sandstone sold for building purposes 
dropped sixty per cent and a further decrease occurred in 1932. 
Employment fell from 2700 to 1400 employees. Under these condi- 
tions there will be little or no re-employment under the Code, 
which will, however, produce an increase in earnings of the em- 
ployees. The principal hope for this Industry to reabsorb its 
unemploji^ed rests upon a revival of construction. Complete, accurate 
data on this Industry are not available. 

(207) 



208 

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 
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 oi 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. 

I wish to point out the fact that the labor provisions of this Code 
are subject to further consideration and revision, and are being 
approved primarily because of the existence of similar provisions 
in the approved Code for the competing Limestone Industry, and 
it is not my intention to establish these provisions as a precedent 
for other stone codes. 

Should it become desirable to revise the labor provisions of the 
Limestone Code, consideration will be given to revising this Code 
at the same time. 

For these reasons, therefore, I have approved this Code, subject 
to a stay on the jjrovision for a waiting period between time of filing 
prices and the effective date thereof. 
Respectfully, 

Hugh S. Johnson, 

A dmlnistrator. 

April 6, 1934. 



CODE OF FAIR COMPETITION FOR THE SANDSTONE 

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 Sandstone Industry and its provisions 
shall be the standard of fair competition for such Industry and shall 
be binding upon every member thereof. 

Article II — Definitions 

Section 1. The term " industry " as used herein includes the 
quarrying, fabricating, and/or sale by quarriers or fabricators of 
sandstone (but not including natural cleftstone) for use as building 
stone, curbing, flagstone, grave vaults, grindstones, breakwaters, 
firestones or pulpstone, and such branches or subdivisions thereof 
as may from time to time be included under the provisions of this 
Code. 

Section 2. Employee. — The term " employee " as used herein 
includes anyone, except a member of the Industry, engaged in the 
Industry in any capacity receiving compensation for his services, 
irrespective of the nature or method of payment of such compensa- 
tion. 

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

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

Article III — Hours ^ 

Section 1. Hours. — Except as hereinafter set forth, no employee 
shall be permitted to work in excess of forty (40) hours j)er week 
averaged over three months periods; or in excess of forty-eight (48) 
hours in any one week or in excess of six (6) days in any one week, 
or in excess of eight (8) hours in any twenty-four (24) hour period. 

Section 2. The maximum hours specified in Section 1 of this 
Article shall not apply to employees engaged in professional, execu- 
tive, administrative, or supervisory work when earning thirty-fiv© 

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

(209) 



210 

(35) dollars per week or more; nor to outside salesmen. The maxi- 
mum hours specified in Section 1 of this Article shall not apply to 
watchmen. No watchmen employed in this industry shall be per- 
mitted to work in excess of twelve (12) hours in any twenty-four 
(24) hour period, or in excess of sixty-four (64) hours in any one 
week. The maximmn hours specified in Section 1 of this Article 
shall not apply to firemen or to plant engineers, who may be per- 
mitted to work not more than two (2) hours in any day or twelve 
(12) hours per week in excess of the maximum hours prescribed in 
Section 1 of this Article. 

Section 3. The maximum hours prescribed in Section 1 of this 
Article shall not apply to truckmen, shipping clerks, plant mainte- 
nance crews, and those engaged in cases oi emergency work requiring 
the protection of life or property. Such employees shall not be 
permitted to work more than six (6) clays in any one week, nor 
more than forty-eight (48) hours in any one week, and shall be 
compensated at one and one-third times their regular rate of hourly 
pay for all time worked in excess of eight (8) hours in any twenty- 
tour (24) hour period. 

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

Section 6. Employers who personally perform manual work or 
are engaged in mechanical operations shall not exceed the prescribed 
maximum number of hours. 

Article IV — Wages ' 

Section 1. Rates of Pay. — (a) Except as hereinafter set forth, 
no employee shall be paid at less than the rate of thirty-five (35) 
cents per hour in the States of Alabama, Arizona, Arkansas, Florida, 
Georgia, Kentucky, Louisiana, Mississippi, New Mexico, North Caro- 
lina, Ohio (south of the 41st degree of latitude), Oklahoma, South 
Carolina, Tennessee, Texas, Virginia, West Virginia, or at less 
than the rate of thirty-eight (38) cents per hour elsewhere. 

(b) The amounts by which hourly wage rates in the higher paid 
classes of employees exceeded wages in the lower paid classes of 
employees on July 1, 1933, shall be at least maintained where 
equitable. 

(c) 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. 

(d) No employer shall reclassify employees or duties of occupa- 
tions performed or engage in any other subterfuge for the purpose 
of defeating the provisions of the Act or of this Code. 

Section 2. Handicapped Persons. — A person whose earning ca- 
pacity 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 



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



211 

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. 

Section 3. Salaried Employees. — No accounting, clerical, office, 
or other employee normally paid on a regular weekly or monthly 
basis shall be paid at less than the rate of $14.00 per week; except 
that office boys and office girls paid on a regular weekly or monthly 
basis may be paid not less than eighty percent (80%) of the mini- 
mum weekly rate provided in this section, provided that no employer 
shall classify more than five percent (5%) of the total number of 
his office employees as office boys and girls and further provided 
that each plant may be entitled to one (1) such employee. 

Section 4. Area Agreevients. — Minimum rates of wages and 
maximum hours of labor may be established nationally or for a 
region or locality by mutual agreements reached through bona fide 
collective bargaining between representative national, regional, or 
local groups of employers and employees. In no event shall such 
minimum rates of wages be less than those established in this article, 
nor shall such maximum hours of labor be more than those estab- 
lished in Article III of this Code. Such area agreements shall be 
effective upon approval by the President or the Administrator after 
such notice and hearing as he may require, and shall be binding upon 
all members of the industry in such area. 

Section 5. An employer shall make paj^ment of all wages due in 
lawful currency or by negotiable check, payable on demand. But 
these wages shall be exempt from any payment of pensions, insurance 
or sick benefits other than those voluntarily paid by the wage earner 
or required by law. Wages shall be paid at least semi-monthly and 
salaries at least once every month. The employer or his agents shall 
accept no rebates directly or indirectly on such wages, nor give any- 
thing of value or extend favors to any person for the purpose of 
influencing rates of wages or the working conditions of his employees. 

Section 6. Each member of the Industry shall comply with all 
rules and regulations prescribed by the Administrator relative to 
posting this Code or portions thereof. 

Article V ^ — General Labor PR0\^SI0NS 

Section 1, Child Labor. — No person under sixteen (16) years of 
age shall be employed in this industry, nor anyone under eighteen 
(18) years of age at operations or occupations hazardous in nature 
or detrimental to health. The Code Authority shall submit to the 
Administrator before June 1, 1934, a list of such occupations. In any 
state an employer shall be deemed to have complied with this pro- 
vision if he shall have on file a certificate or permit duly issued by the 
authority in such state empowered to issue employment or age cer- 
tificates or permits, showing that the employee is of the required age. 

Section 2. Rights of Labor. — (a) Employees shall have the right 
to organize and bargain collectively through representatives of their 

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



212 

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 purj^ose of collective bargaining or other mutual 
aid or protection. 

(b) No employee and no one seeking employment shall be required 
as a condition of emploj^ment to join any company union or to refrain 
from joining, organizing, or assisting 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. 

(d) Where rates of pay and hours of labor for any of the various 
classifications of workers in the industry are now in effect by virtue 
of contracts entered into by bona fide collective bargaining between 
the employers and the employees, such rates of pay and hours of labor 
shall be maintained during the periods covered by the respective 
contracts unless superseded by area agreements approved in accord- 
ance with Article IV, Section 4 of this Code ; provided that the rates 
of pay provided in such contracts are not less than, nor the hours 
of labor pro\dded in such contracts more than, the minimum rates 
of pay and the maximum hours of labor established in this Code. 

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

(f ) Every employer shall provide for the health and safety of his 
workmen. He shall comply with the national, state, and local 
statutes and provisions for safety and health and shall protect his 
employees by Workmen's Compensation Insurance, according to the 
amounts required in the state of jurisdiction or the United States 
Employees' Compensation Insurance if that state has not established 
a compensation scheme for this industry. 

Section 3. Tke Code Authority herein provided for shall prepare 
and submit with the cooperation of the United States Public Health 
Service not later than June 1, 1934, a report on hazards affecting 
employees in the industry, with recommendations for their improve- 
ment or correction, which recommendations, upon approval by the 
President, and after such hearing as he may prescribe, shall become 
effective as part of this Code. 

Section 4. Industrial Relations Board. — There ma}' be established 
by the Administrator a National Industrial Relations Board and/or 
Boards for the industry, consisting of an equal number of repre- 
sentatives of employers and employees to deal with all matters in 
the Code relating to labor. Where a majority agreement cannot be 
reached, the Board shall select an impartial chairman to render a 
decision. The creation and functioning of these Boards including 
the selection of representatives of employees shall be in accordance 
with Section 7 (a) of the Act. If no truly representative labor 
organization exists, the emploj^ee members of such Board shall be 
chosen by the Labor Advisory Board of the National Recovery Ad- 
ministration. The employer representatives shall be chosen by the 



213 

Code Authority. The Industrial Rehitions Board may establish 
such subsidiary agencies constituted in like manner as it finds 
necessary. 

Section 5. Employees other than maintenance or supervisory em- 
ployees, or those necessary to protect property shall not be required 
as a condition of employment to live in homes rented from the 
employer. 

Section 6. No employee shall be required as a condition of em- 

Eloyment to trade at a store owned or specified by an employer or 
is agents. 

Article VI — Administration 

Section 1. Code Authority. — (a) To effectuate further the poli- 
cies of the Act a Code Authority is hereby established to administer 
this Code. 

(b) The five (5) members of the National Control Committee of 
the National Sandstone Association, as that committee is from time 
to time constituted, are hereby designated as a Code Authority to 
administer this Code for the Sandstone Industry. The Adminis- 
trator may in addition appoint not more than three (3) members, 
without vote. 

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

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

(e) In addition to having the general power to administer this 
Code, the Code Authority shall have the following specific powers 
and duties: 

(1) To establish such subcommittees and stat«, regional, or local 
committees as it may deem necessary. 

(2) To obtain from all members of the industry sworn or unsworn 
reports periodically or as often as it may direct, on wages, hours of 
labor, conditions of employment, number of employees, or other 
conditions in the industry pertaining to the provisions of this Code. 

(3) To submit to the Administrator from time to time such recom- 
mendations based upon conditions in the industry, as they may 
develop, as in its judgment will further effectuate the policies of the 
Act or will improve the operation of this Code or any supplemental 
Codes proiDOsed or made a part of this Code. Any such recommen- 
dations, when approved by the President, after such notice and 



214 

hearing as he may prescribo, shall become effective as part of this 
Code. 

(4) 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 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. 

(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 expense of its administration. The 
reasonable share of the expenses 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 to be taken into consideration. 

(6) To establish rules, methods, and practices for filing bids, 
which, upon approval by the Administrator, shall be used by all 
members of the industry. 

Section 2. The Code Authority is directed to cooperate with the 
Administrator as a planning and fair practice agency for the sand- 
stone industry. The Code Authority may from time to time present 
to the Administrator recommendations based on conditions in the 
industry as they may develop from time to time which will tend to 
effectuate the operations of the provisions of this Code and the 
policy of the Act and in particular along the following lines : 

1. Recommendations that the Administrator require registration 
by members of the industry of their productive machinery. 

2. Recommendations that the Administrator require that, prior 
to the installation of additional productive machinery, such persons 
shall secure certificates that such installation will be consistent with 
effectuating the pob'cy of the National Industrial Recovery Act dur- 
ing the period of emergency. 

3. For the granting or withholding by the Administrator of such 
certificates as may be so required by him. 

Section 3. Supplemental codes may be submitted to the President 
by subdivisions of the industry through the Code Authority estab- 
lished herein, when consistent with this Code and other rules and 
regulations promulgated by the President and when within the 
spirit and purpose of the Act, but nothing herein shall be construed 
to prevent a trade association or other representative group from 
submitting a code directly to the President. Any such supplemental 
codes shall provide for minimum rates of pay not less than, and for 
maximum hours of work not more than the limitations established 
therefor in this Code. 

Section 4. The Code Authority shall study the trade practice pro- 
visions, in Article VII, and the operation thereof and shall make 
any recommendation from time to time to the Administrator which 
it deems desirable for modification or addition thereto which upon 
his approval, after such hearing as he may prescribe, shall become a 



215 

part of this Code and shall have full force and effect as provisions 
hereof. 

Section 5. 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 
imless 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 6. In addition to information required to be submitted to 
the Code Authority, there shall be furnished to governmental agen- 
cies such statistical information as the Administrator may deem 
necessary for the pui*pose recited in Section 3 (a) of the National 
Industrial Recovery Act; provided that nothing in this Code shall 
relieve any member of the industry of any existing obligation to 
furnish reports to government agencies. 

Article VII — Trade Practices 

Section 1. Selling helow reasonable cost. — ^When the Code Au- 
thority 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 industry, such deter- 
mination 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. 

YvTien 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 2. Price Publication. — Members of the industry who quarry 
or sell block or sawed stone, grindstones, curbing, flagging, grave 
vaults, or pulpstones or who fabricate block or sawed stone quarried 
by themselves shall publish price schedules including terms and con- 
ditions of sale for such products and shall file the same with the 
Code Authority or with such agency as it may designate. Notice of 
changes in schedules so published and filed shall be recorded with 
the Code Authority or its agency, and shall become effective five (5) 
days after receipt of such changes by the Code Authority or its 
agency, provided that other members of the industry may revise their 
schedules to be effective on the same date as that of a competitor 
where such revision is made for the purpose of meeting competition. 
The Code Authority or its agency shall immediately notify all mem- 
bers of the industry and such other persons as may in the opinion of 
the Code Authority be interested parties of the contents of all sched- 



216 

ules filed with it, and of any changes therein and such schedules shall 
at all times be available to all interested parties. The schedules so 
published and filed shall be maintained by each member of the indus- 
try filing the same.^ 

Section 3. Sales within the Industry. — Members of the industry 
who both quarry and fabricate sandstone shall charge themselves as 
fabricators the prices for block stone which they have filed with the 
Code Authority. 

Section 4. Trade Practices. — The following trade practices are 
unfair methods of competition, and are violations of this Code : 

(a) Collusion by any member of the industry with any awarding 
authority, or with any other member of the industry, in the prepara- 
tion of bids ; 

(b) Submitting of bids unless and until the awarding authority 
inviting the bids makes available complete, plans and/or specifi- 
cations and other pertinent information in order that the bidder may 
prepare a complete estimate or bid in accordance therewith; 

(c) Extending of any rebates, refund allowance, discount, com- 
mission, or service privilege in any form, except to all purchasers 
under like terms and conditions ; 

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

Section 5. Bidding Practice. — Whenever a member or members 
of the Industry, acting as an awarding authoritj^, receive competitive 
bids, such member or members of the Industry shall not engage in 
the practice of " Bid Peddling ", which is defined as giving or at- 
tempting to give information, true or false, to a bidder regarding 
the estimate or bid of a competitor in order to gain or give an unfair 
advantage. 

Abticle VIII — Modification 

1. This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provision 
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 the 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 modification to be based on application to the Administrator 
and such notice and hearing as he shall specify, and become effective 
on approval of the President. 

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



217 

Article IX — Monopolies 

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

Article X — Price Increase 

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

Article XI — Effective Date 

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



Approved Code No. 388. 
Registry No. 103!>-11. 



o 



Approved Code No. 389 
CODE OF FAIR COMPETITION 

FOR THE 

CLAY AND SHALE ROOFING TILE INDUSTRY 

As Approved on April 6, 1934 



ORDER 



Approving Code of Fair Competition for the Clay and Shale 
Roofing Tile Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of tha National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Clay and Shale Roofing Tile Industry, and 
hearing having been duly held thereon and the annexed report on 
said Code, containing findings with respect thereto, having been 
made and directed to the President : 

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

Hugh S. Johnson, 
Adiiimhtrator for hidustr-ial Recovery. 

Approval recommended : 
A. R. Glancy, 
Division Administrator. 

Washington, D.C, 

April 6, 1934. 

51567° 482-40 34 (219) 



REPORT TO THE PRESIDENT 

The President, i 

The White House. | 

Sir : This is a report on the Code of Fair Competition for the Clay 
and Shale Roofing Tile Industry as revised after a public hearing 
conducted in Washington, D.C., on January 19, 1934, in accordance 
with the provisions of the National Industrial Recovery Act. 

PROVISIONS AS TO WAGES AND HOURS 

All employees, except persons employed in accounting, clerical, 
office or sales work, or persons whose earning capacity is limited 
because of age, physical or mental handicap, shall be paid a mini- 
mum rate of forty cents per hour in all states except the following 
where the minimum rates shall be: Washington, Oregon, Idaho, 
California, Nevada, Arizona and New Mexico, thirty-seven and one- 
half cents per hour; Kentucky, thirty cents per hour; North Caro- 
lina, twenty -seven cents per hour; Tennessee, South Carolina, Geor- 
gia, Alabama, Florida, Texas and Louisiana, twenty-five cents per 
hour. Persons employed in accounting, clerical, office or sales work 
shall be paid at the rate of not less than from fourteen to fifteen 
dollars per week, depending upon the population of the city or town 
in which they work. Persons whose earning capacity is limited 
because of age, physical or mental handicap may be employed on 
light work at a wage below the minimum established by this Code. 
Female employees performing substantially the same work as male 
emplo3^ees shall receive the same rate of pay as male emploj^ees. 
Equitable adjustment of compensation of employees receiving more 
than the minimum rates of pay shall be made by all employers who 
have not heretofore made such adjustments, within sixty days after 
approval of this Code. 

Forty hours shall be the maximum number of working hours for 
any one w^eek or eight hours for any one day except that during any 
three weeks in any six months' period, forty-eight hours per week 
is permissible. The foregoing limitations shall not apply to those 
engaged in executive, managerial and supervisory capacities who 
regularly receive thirty-five dollars or more per week, and outside 
salesmen ; burner and power plant employees who may be permitted 
to work not more than forty-eight hours in any seven day period; 
night watchmen who may be permitted to work not more than twelve 
hours in any one day or forty-eight hours in any one week, or eighty- 
four hours in any two weeks' period; day watchmen who may be 
permitted to work eight hours in any one day or forty-eight hours 
in any one week; employees engaged on emergency maintenance or 
emergency repair work, provided one and one-half times the normal 
rate of pay shall be paid for the hours worked in excess of eight 
hours per day or forty hours per week. 

(220) 



221 

ECONOMIC EITECTS OF THE CODE 

Clay and shale roofing tile is used principally on residences, 
schools, churches, recreational, public, and governmental buildings. 
Roofing tile comprises only about three percent of all roofing mate- 
rial sold. The Industry is highly seasonal and follows building con- 
struction very closely. Peak business occurs during the second and 
third quarters. 

Production of roofing tile reached a peak in 1926 when the value 
of tile produced was $7,015,755. There has been a steady decrease in 
production until in 1933 sales amounted to only 15 percent of the 
1926 figure and 26 percent of the 1929 production. In spite of the 
decrease in production the number of members in the Industry has 
increased so that present capacity is 22 percent above the 1928 figure. 
Competition within the Industry is extremely keen. Trade practice 
proA'isions of the Code are expected to remedy the unfair competition 
that has existed in the past within the Industry. 

According to the Research and Planning Division's report there 
were, in 1929, one thousand four hundred and sixty-eight wage earn- 
ers employed by the Industry ; in 1933, nine hundred and eighty-two. 
In order to absorb all workers engaged in the Industry in 1929, an 
eighteen hour week would be necessary. Over 90 percent of the 
members of the Industry also operate under the approved code for 
structural clay products. 

Average hours worked per week in 1929 were fifty; in 1933, twenty^ 
seven. In 1933, hours were reduced to a low level in order to spread 
employment as far as possible. Ten percent of the workers in the 
Industry are unskilled and will be affected by the minimum wage 
provisions of the Code. Labor costs under the President's Reemploy- 
ment Agreement increased 18 percent. A further increase in pur- 
chasing power can be expected as the result of the provision in the 
Code stating there shall be an equitable adjustment of wages above 
the minimum. 

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. 



222 

(b) Said Industry normally employs not more than 50,000 
emploj'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, includino; without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant group is an 
industrial group truly representative of the aforesaid Industry ; and 
that said group imposes no inequitable restrictions on admission to 
membership therein. 

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

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

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

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

Hugh S. JonxsoN, 

Adminwtrator. 
April 6, 1934. 



CODE OF FAIR COMPETITION FOR THE CLAY AND 
SHALE ROOFING TILE 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 and Shale Roofing Tile 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 "Clay and Shale Roofing Tile Industry" or the 
" Industry " as used herein is defined to mean the manufacture for 
sale of clay and shale roofing tile. 

2. The term " employee " as used herein includes any and all 
persons engaged in the Industry, however comj)ensated, except a 
member of the Industry. 

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

4. The term " member of the Industry " includes, but without 
limitation, any individual, partnership, association, corporation, or 
other form of entity engaged in the Industry, either as an employer 
or on his or its own behalf. 

5. The term " roofing contractor '' as used herein shall mean a 
person, company, or corporation or other entity engaged in con- 
tracting with owners, owners' agents, or general contractors for 
roofing material in place on roofs to be installed by skilled tile 
mechanics compensated on a regular hourly, daily or weekly basis. 

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

7. The " Industry Committee " as used herein is defined to mean 
the committee selected at a meeting of the Clay and Shale Roofing 
Tile manufacturers held at Chicago. Illinois, on July 12, 1933. 

8. Population for the purposes of this Code shall be determined 
by reference to the 1930 Federal Census. 

Article III — Hours 

Section 1. No employee, excluding accounting, clerical and office 
employees, shall be employed in excess of forty (40) hours in any 
one week or eight (8) hours in any one day or more than six (6) 
days in any one week, except that during any three (3) weeks in 
any six (6) months period employees may be employed not more 
than forty-eight (48) hours per week. The foregoing limitations 
shall not apply to: 

(223) 



224 

(a) Those engaged in executive, managerial and supervisory 
capacities who regularly receive thirty-five (35) dollars or more 
per week. 

(b) Outside salesmen. 

(c) Burner and power plant employees who may be permitted 
to work no more than forty-eight (48) hours in any seven day 
period. 

(d) Night watchmen who may be permitted to work not in 
excess of twelve (12) hours in any day or forty-eight (48) hours 
in any week or eighty-four (84) hours in any two (2) weeks' period. 
Day watchmen who may be employed not in excess of eight (8) 
hours in any day or forty-eight (48) hours in any week. Watch- 
men shall not be permitted to work more than six (6) days in any 
seven (7) day period. 

(e) Employees who are engaged on emergency maintenance or 
emergency repair work involving the breakdown of machinery or 
plant equipment or protection of life or property, provided, one 
and one-half times the normal rate of pay shall be paid for hours 
worked in excess of the maximum hours hereinbefore provided. 

(f) No accounting, clerical or office employee shall be permitted 
to work in excess of forty (40) hours per week. 

Section 2. An employer shall so administer work in his charge 
as to provide the maximum continuity of employment practicable for 
his personnel. 

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, exceeds the maximum permitted 
herein. 

Article IV — Wages 

Section 1. No employee shall be paid less than at the rate of 
forty (40) cents per hour except in the following states where the 
minimum rates shall be as follows: Washington, Oregon, Idaho, 
California, Nevada, Arizona, and New Mexico thirty-seven and 
one-half (371/2) cents; Kentucky thirty (30) cents; North Carolina 
twenty-seven (27) cents; and in the following states, Tennessee, 
South Carolina, Georgia, Alabama, Florida, Texas, and Louisiana 
twenty-five (25) cents per hour. The minimum wage shall apply 
to common labor or totally unskilled labor. Other classes of labor 
shall be compensated at rates above the minimum. 

Section 2. No person employed in accounting, clerical, office, or 
sales work shall be paid less than the rate of fifteen ($15.00) dollars 
per week in any city of 500,000 population or more, or in the imme- 
diate trade area of such city; nor less than at the rate of fourteen 
dollars and fifty cents ($14.50) per week in any city of between 
250,000 and 500,000 population, or in the immediate trade area of 
such city; nor less than at the rate of fourteen ($14.00) dollars per 
week in any city or town of less than 250,000 population. 

Seciton 3. 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 4. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as 



225 

male employees and where they displace men they shall receive the 
same rate of earnings as the men they displace. The Code Authority 
shall within ninety days after the effective date of this Code file with 
the Administrator a description of all occupations in the Industry 
in which both men and women are employed. 

Section 5. 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 emploj'ers shall within sixty (60) days after 
approval of this Code, report in full to the Code Authority con- 
cerning such adjustments whether made prior to or subsequent to 
such approval ; provided, however, that in no event shall hourly rates 
of pay be reduced. 

Section 6. 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 b}^ the United States Department of Labor, a certificate au- 
thorizing such person's emploj^ment at such wages and for such hours 
as shall be stated in the certificate. Such authority shall be guided 
by the instructions of the United States Department of Labor in 
issuing certificates to such persons. Each employer shall file monthly 
with the Code Authority a list of all such persons employed by him, 
showing the wages paid to, and the maximum hours of work for such 
employees. 

Section T. Wages shall be exempt from any deductions for pen- 
sions, insurance, or sick benefit other than those voluntarily paid 
by the wage earners or required by law. 

Article V — General Labor Provisions 

Section 1. No person under sixteen years of age shall be employed 
in the Industry or anyone under eighteen years of age at operations 
or occupations hazardous in nature or detrmiental to health. The 
Code Authority shall submit to the Administrator within sixty (60) 
days after the approval of this Code a list of such operations or 
occupations. In any State an emploj^er shall be deemed to have 
complied with this provision if he shall have on file a certificate 
duly issued by the authority empowered to issue employment certifi- 
cates, showing that the employee is of the required age. 

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

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



226 

(c) Employers shall comply with the maximum hours of labor, 
minimum rates of pa}', and other conditions of emploj-ment, 
approved or prescribed by the President. 

Sectiox 3. No provision in this Code shall supersede any State or 
Federal law which imposes more stringent requirements on emploj'ers 
as to age of employees, wages, hours of work, or as to safety, health, 
sanitar}^, or other 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 for the purposes of defeating the provisions 
of the Act or of this Code. 

Section 5. All employers shall comply with the rules and regu- 
lations issued from time to time by the Administrator with respect 
to posting notices, bulletins and extracts from this Code. 

Section 6. Every employer shall provide for the safety and health 
of his emploj^ees at the place and during the hours of their employ- 
ment. Minimum standards of safety and health shall be submitted 
by the Code Authority to the Administrator for approval within 
four (4) months after effective date of this Code. 

Section 7. Employees, other than maintenance or supervisory 
men or those necessary to protect propert}', shall not be required as 
a condition of employment to live in homes rented from the emploj'er 
or specified by him or his agents. 

Article VI — Organization 

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

Section 2. The Code Authority shall consist of three (3) indi- 
viduals, or such larger number as may be approved from time to time 
by the Administrator, to be elected from members of the Industry by 
a fair method approved by the Administrator. The members of the 
Code Authority shall serve for a term of one (1) j'ear, and no member 
of the Industry shall have more than one representative on the Code 
Authority. For each member of the Code Authority, an alternate 
shall be chosen to serve in place of the regular member at any hearing 
where the member of the Industry with whom the regular member is 
affiliated is charged with a Code violation. The alternate is to be 
selected from a member of the Industry other than that with which 
the regular member is connected. 

Section 3. In addition thereto, there shall be not to exceed three 
(3) members who shall be appointed by the Administrator. The 
members who may be appointed by the Administrator shall be with- 
out vote and shall be given notice of and ma}^ sit at all meetings of 
the Code Authorit3^ 

Section 4. The Industry Committee shall conduct the election of 
the Code Authorit3^ The method of election shall be submitted by 
the Industry Committee to the Administrator within thirty (30) 
days after the effective date of this Code. Within five (5) days after 
the approval of the method of election by the Administrator the " In- 
dustry Committee " shall call a meeting of the members of the In- 
dustry to be held within fifteen (15) days after the date of the notice. 
Notice of the time and place of the Industry meeting shall be sent by 



227 

registered mail ten (10) days in adyance of such meeting to all mem- 
bers of the Industry. Voting may be by person, by proxy, or by letter 
ballot. 

In case of a vacancy in the membership of the Code Authority, a 
meeting of the members of the Industry shall be called and held 
within thirty (30) days after such vacancy occurs. 

Section 5. To further effectuate tije policies of the Act there shall 
be established in the region west of the Rocky Mountains, compris- 
ing the States of (\ilifornia, AVashington, Oregon, Idaho, Nevada, 
Arizona and New Mexico, a Regional Control Committee consisting 
of three (3) members, to be elected by a fair method, approved by 
the Administrator, by the members of the Industry in the above 
named States who assent to this Code and agree to sustain their 
reasonable share of the expense of administering this Code. The 
Code Authority shall dele-gate to such Regional Control Committee 
such of its powers and duties as may be necessary for the adminis- 
tration of this Code within such region. 

Section 6. Each trade or industrial association or group directly 
or indirectly participating in the selection or activities of the Code 
Authority or the Regional Control Committee shall (1) impose no 
inequitable restrictions on membership, and (2) submit to the Ad- 
ministrator true copies of its articles of association, by-laws, regula- 
tions, and any amendments when made thereto, together wdth such 
other information a^ to membership, organization, and activities as 
the Administrator may deem necessary to effectuate the purposes of 
the Act. 

Section 7. In order that the Code Authority and the Regional 
Control Committee herein above provided for 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 Regional Control Committee is not truly 
i-epresentative 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 Code Authority or Regional Control 
Committee. 

Section 8. Members of the Industry shall be entitlsd to partici- 
pate in and share the benefits of the activities of the Code Authority 
or Regional Control Committee and to participate in the selection 
of tlie members thereof only by assenting to and complying vrith 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 Administrator, on the basis of 
voluine of business and/or such other factors as may be deemed 
equitable. 

Section 9. Nothing contained in this Code shall constitute the 
members of the Code Authority or Regional Control Committee 
partners for any purpose. Nor shall any member of the Code Au- 
thority or Regional Control Committee be liable in any maimer to 
anj'one for any act of any other member, officer, agent or employee 
of the Code Authority or Regional Control Committee. Nor shall 
any member of the Code Authority or Regional Control Committee 



228 

exercising reasonable diligence in the conduct of the duties here- 
under be liable to anyone for any action or omission to act under the 
Code, except for his own willful misfeasance or non-feasance. 

Section 10. The Code Authority shall have the folowing powers 
and duties to the extent permitted by the Act. 

(a) To execute the provisions of the Code and provide for the com- 
pliance 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 for facilitating the enforcement of 
the Code in accordance 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 the meetings when held, and such other information as to its 
activities as the Administrator may deem necessary to effect the pur- 
poses of the Act. 

(c) To obtain from members of the Industry such information 
and reports as are required for the administration of the Code. No 
individual reports shall be disclosed to any other member of the 
Industry or to any other party except to such governmental agencies 
as may be directed by the Administrator. 

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

(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 
the National Recovery Administration Insignia solely by those mem- 
bers of the Industry who have assented to and are comi^lying 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 emploj'ment. 

(i) To consider proposals for modifications or amendments to 
this Code and make recommendations thereon from time to time 
to the Administrator which modifications or amendments shall be- 
come effective as part of the Code, upon approval by the Adminis- 
trator after such notice and hearing as he may specify. 

(j) 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 Ad- 
ministrator as amendments to this Code and such other codes. 



229 

Secttox 11. In addition to the information required to be sub- 
mitted to the Code Authority, all or any of the persons subject to 
the Code, shall furnish such statistical information as the Adminis- 
trator 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 this Code, relieve any person 
of any existing obligation to furnish reports to Government agencies. 

Sectiox 12. 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 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 

General Definition. — For all purposes of the Code, the acts de- 
scribed in this Article shall constitute unfair practices. Any mem- 
ber of the Industry who shall directly or indirectly, through any 
officer, employee, agent or representative, knowingly use, employ or 
permit to be employed any of such unfair practices shall be guilty 
of a violation of the Code. 

Rule 1. Interference with Contractual Relations. — No member 
of the Industry shall make any willful attempt to induce a breach 
of any bona fide contract for the sale of roofing tile or to prevent 
the performance of any such contract. 

Rule 2. Def aviation. — No member of the Industry shall cause 
the defamation of a competitor by any false, misleading or deceptive 
act or statement imputing to him an insecure or questionable finan- 
cial condition or credit standing, or inability to perform contracts; 
or impute to him or to any of his authorized representatives dis- 
honorable conduct or lack of business integrity or disparage the 
qualit}^ durability, or workmanship of roofing tile manufactured 
by such competitor. 

Rule 3. Tying Contracts. — No member of the Industry shall 
require any person engaged in the business of buying and selling, 
or of using or installing roofing tile, as a condition of the pur- 
chase by said person of roofing tile from such manufacturer, to 
purchase, sell, use, or install only roofing tile produced by such 
manufacturer, or to induce or attempt to induce any person to agree 
to refuse to purchase, sell, use, or install roofing tile produced by 
other manufacturers. 

Rule 4. Disaffecting Competitors^ Representatives. — No member 
of the Industry shall induce or attempt to induce a sales agent of a 
competitor to cease to represent such competitor, or a salesman of 
a competitor to leave his employ, for the purpose of injuring the 
business of such competitor. 

Rule 5. Secret Rebates. — No member of the Industry shall make 
secret payment or allowance of rebates, refunds, credits, unearned 
discounts or other allowances, whether in the form of money or 



230 

gifts or otherwise, as a means of effecting or concealing price dis- 
crimination, or grant to any person engaged in the purchasing, 
selling, or installing roofing tile of any special privilege, preference, 
or priority not offered to other persons similarly situated under like 
circumstances. 

Rule 6. 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 
actuall}^ used for commercial bribery as hereinabove defined. 

Rule 7. Incorrect Advertising. — No member of the Industry shall 
publish advertising whether printed, radio display or of any other 
nature, which is misleading or incorrect in any material particular, 
nor shall an^' member in any way misrepresent any goods, including, 
but without limitation of its use, trade marks, grades, quantities, 
origin, substance, character, nature, finish, material contained or 
preparation thereof. 

Rule 8. Incorrect Marking or Branding. — 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, quantity, quality, origin, uses, substance, 
character, nature, finish, material content or preparation of such. 

Rule 9. Financing Roofing Contractors. — No member of the 
Industry" shall finance, directly or indirectly, in any manner whatso- 
ever, the operations of a roofing contractor, whether he is an indi- 
vidual, partnership, or a corporation. 

Rule 10. Consignments. — No member of the Industry shall make 
a shipment of roofing tile on consignment except in special instances 
where permission in writing shall be secured from the Code 
Authority. 

Rule 11. The Code Authority shall cause to be formulated an 
accounting s^'stem 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. 

Rule 12. It shall constitute a violation of this Code for any 
member of the Industry to sell any product at less than his indi- 
vidual cost as defined in this rule, except to meet the competition 
of another producer. Avliose prices are not in violation of the Code. 
Cost shall include all direct labor cost, direct raw material cost 
(inclusive of transportation and shrinkage), and a proportionate 
share of all indirect expense, inclusive of maximum depreciation 
(on active plants) and depletion allowances both computed accord- 
ing to Federal Income Tax procedure; but cost shall not include 
return on invested capital, interest on borrowed capital, develop- 
mental expense, selling expense, nor administrative expense. 



231 

Rtjle 13. Dropped lines, or 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 conditions, but only 
if such member, not less than two (2) weeks before such disposal, 
has filed with the Code Authority, a statement in writing, setting 
forth the fact of, and reasons for, such proposed disposal. 

Rule 14. TJndeTesthnating Quantities. — No member of the Indus- 
try shall knowingly underestimate quantities required for a specific 
operation. 

Rule 15. Price DiscHminat/ion. — No member of the Industry shall 
discriminate in the price of roofing tile products between purchasers 
of the same class, except for difference in grade, quantit}^, or quality 
of the product sold, or except for difference in cost of selling and/or 
transportation, or made in good faith to meet competition. 

Rule 16. Other Unfair Trade Practices. — Nothing in tliis Code 
shall limit the effect of any adjudication by the courts or holding by 
the Federal Trade Commission on complaint, find, and order, that 
any practice or method is unfair, provided that such adjudication 
or holding is not inconsistent with any provision of tlie Act. 

Article VIII — Terms of Sale 

The terms of sale of each member of the Industry, including credit 
terms, shall be uniform to all purchasers of roofing tile similarly 
situated and shall be uniformly enforced; provided that nothing 
herein contained shall prevent any member of the Industry from 
refusing credit to any purchaser of roofing tile or requiring special 
terms of payment, where in his judgment such refusal or requirement 
is necessary for the adequate protection of the account; nor shall 
anything herein contained prevent any member of the Industry 
from using his discretion in the collection of delinquent accounts. 

Article IX — Quotations 

Quotations made to different roofing contractors based upon the 
same estimate shall be in writing and shall be in all material respects 
uniform: Provided, that the terms of credit may be varied in the 
case of any customer to such extent as the member of the Industry 
may deem necessary for his protection. 

The same rule shall be applicable to revised quotations and in 
general such quotations shall be submitted to all roofing contractors 
who received the original quotation, but it shall not be considered a 
violation of this provision to withhold revised quotations from any 
roofing contractor who received the original quotation but who, 
according to information received by the member of the Industry, 
and believed by him to be reliable, is not, at the time of the issuance 
of the revised quotations, interested in receiving such quotation or 
who would be unable to make use of it. 

Article X — Production 

The present kiln capacity of the Industry shall be registered by 
the members of the Industry with the Code Authority. The inten- 
tion of persons engaged or intending to engage in the industry to 
install additional kiln capacity, excepting, however, modernization 



232 

or replacement of existing capacity, or to deA^ote to the manufacture 
of clay and shale roofing tile kilns not used for such purpose during 
the three 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 polic}^ of the Act. 

Article XI — Modification 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of sub-section (b) of Section 10 of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, 
approval, license, rule, or regulation issued under Title I of said Act 
and specifically, but without limitation, to the right of the 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 Admin- 
istrator and such notice and hearing as he shall specify, and to be- 
come effective upon its approval by the President. 

Article XII — 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 XIII — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
•will be made impossible of consummation if prices of goods and 
services increase as rapidly as 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 XIV — Registration 

Within thirty (30) days after the election of the Code Authority 
each member of the Industry shall register with the Code Authority. 
All members of the Industry who engage in the Industry thereafter 
shall likewise register with the Code Authority. 

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

Article XV — Effectta'e Date 

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



Approved Code No. 389. 
Registry No. 1030-1-02. 



o 



Approved Code No. 390 

CODE OF FAIR COMPETITION 

FOR THE 

STEEL PLATE FABRICAl^ING INDUSTRY 

As Approved on April 6, 1934 



ORDEE 



Code of Fair Competition for the Steel Plate FABRiCATiNa 

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 Steel Plate Fabricating 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 within ninety days I may direct that there be a further 
hearing on such of the provisions of said Code as I may designate, 
and that any order which I may make after such hearing shall have 
the effect of a condition on the approval of said Code. 

Hugh S. Johnson, 
Administrator for Industi'ial Recovery. 

Approval recommended: 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C., 

April 6, 193Ji,. 

51570° 482-37 34 (233) 



REPOKT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on the Code of Fair Competition for the 
Steel Plate Fabricating Industry as revised after the public hearing 
conducted in Washington on December 5, 1933, in accordance with 
the provisions of the National Industrial Recovery Act. 

HOURS AND WAGES 

Except in the case of persons in a managerial, executive, super- 
visory or technical capacity and their respective staffs, commercial 
traveling salesmen, watchmen, employees engaged in emergency 
maintenance or repair work, highly skilled workers on continuous 
processes where restrictions of hours would unavoidably delay pro- 
duction, accounting, clerical or other office workers, employees in the 
Steel Plate Fabricating Industry are limited to an average of not 
more than forty (40) hours per week in any four (4) weeks period 
nor more than forty-eight (48) hours or more than six (6) days in 
any one (1) week. 

No reclassification of emj)loyees for the pui'pose of defeating the 
purpose of the Act is permitted, and no employee is permitted to 
work more than the specified maximum hours whether for one or 
more employers. 

No person under sixteen (16) years of age is pennitted to work in 
the industry, nor any person under eighteen (18) years in any 
hazardous or unhealthful occupation. 

Minimum wages of thirty (30) cents per hour in the South, forty 
(40) cents per hour in the North, and thirty-five (35) cents per hour 
in the States of Texas and Virginia are provided for factory and 
construction employees. The minimum wages of office employees 
range from twelve (12) dollars to fifteen (15) dollars per week. 

ECONOMIC EFFECTS OF THE CODE 

The Industry at present is operating at about twenty-seven per 
cent (27%) of the 1929 peak volume in tonnage, when employees 
numbered about 20,700. The present number of employees is about 
forty-seven per cent (47%) of the number employed during that 
period or about 9,700. This shows an increase of 4.200 employees 
or about forty-five per cent (45%) over the number employed during 
February 1933. According to data received, a great majority of the 
employees are working less than forty (40) hours per week. The 
present increase in employment is due partially to large orders for 
oil storage tanks and partially to compliance with the President's 
Reemployment Agreement. Any further appreciable increase in 
employment above the President's Reemplo3anent Agreement would 
have to come from an increased volume in the Industry. 

(234) 



235 

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 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 governmentaJ 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 restrictions of production (except as may be temporarily 
required), by increasing the consumption of industrial and agri- 
cultural products through increasing purchasing po^yer, by reduc- 
ing and relieving unemployment, by improving standards of labor, 
and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,003 employ- 
ees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and 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, I have approved this Code. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
April 6, 1934. 



CODE OF FAIR COMPETITION FOR THE STEEL PLATE 
FABRICATING 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 Steel Plate Fabricating 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 words are used in this Code with the meanings 
respectively set forth : 

1. The term " Steel Plate Fabricating Industry " or " the Indus- 
try " as used herein includes the fabricating and/or selling, and/or 
erecting in the United States of America, exclusive of Alaska, 
Hawaii, the Canal Zone and its other insular and maritime pos- 
sessions, of: 

(a) Field erected storage tanks for water, oil and other purposes, 

(b) Shop built storage and pressure tanks (except refrigerant 
receptacles manufactured by a member of the Refrigerating Machin- 
ery Industry or a« corporation affiliated therewith) for water, oil and 
other purposes except where standardized and shipped in finished 
conditions and/or sold from a published price list, and further ex- 
cepting pressure and sump tanks for governing and control systems 
of water power plants when manufactured by a member of the 
Water Power Equipment Industry or a corporation affiliated there- 
with. 

(c) Blast furnaces. 

(d) Gas holders. 

(e) Elevated steel tanks and supporting towers. 

(f) Penstocks and pipe line construction and water pipe either 
riveted or welded, lock bar or seamless, either hot dipped vertically 
or specially coated, except feeder pipes and intake pipes, not exceed- 
ing thirtj^-five (35) feet in length, furnished with the turbine as part 
of a water power installation and manufactured by the manufacturer 
of such turbine or a corporation affiliated therewith. 

(g) Steel stacks. 

(h) Miscellaneous sheet, plate and kindred work, not provided 
for in other Codes, and branches or subdivisions thereof as may from 
time to time be included under the provisions of this Code. 

2. The term "Association " as used herein shall mean " Steel Plate 
Fabricators' Association." 

3. The term " employee " as used herein shall include any and all 
persons engaged in any phase of the Industry in any capacity how- 
ever compensated, except a member of the Industry. 

(236) 



237 

4. The term " employer " as used herein means any employer 
engaged in the Industry, 

5. The term " Member of the Industry " as used herein includes 
any individual, partnership, association, corporation or other person 
or form of enterprise engaged in the Industry either as an employer 
or on his own behalf. 

6. The term " Member of the Code " as used herein includes any 
member of the Industry who shall expressly signify assent to this 
Code. 

7. The term " apprentice " as used herein means a person (usually 
a minor) bound by indenture to serve an employer for a term or 
years at a pre-determined wage for the period of indenture in order 
to learn a trade, art or profession. 

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

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

Article III — Hours 

1. Factory and construction employees, mechanical workers or 
artisans or other employees in the Industry, except as hereinafter 
provided, shall not be employed in excess of an average of forty 
(40) hours per week in any four (4) weeks period or more than 
forty-eight (48) hours or more than six (6) days in any one (1) 
week. For the purposes of this Article III the first four (4) weeks 
period for such employment shall begin April 1st, 1934. The fore- 
going limitations as to hours of labor shall not apply to persons in a 
managerial, an executive or a supervisory or technical capacity and 
their respective staffs; to commercial traveling salesmen or watch- 
men, nor to employees engaged in emergency maintenance or repair 
work; nor to very special cases where restrictions of hours of highly 
skilled workers on continuous processes would unavoidably reduce 
production. No watchman shall be permitted to work in excess of 
fifty-six (56) hours in any one week. 

2. No employer shall work any accounting, clerical, or other office 
employees in the Industry more than forty (40) hours per week 
averaged over a period of five (5) weeks, nor more than forty-eight 
(48) hours in any one week, excluding the classes of employees 
referred to in the third sentence of paragraph 1 of this Article III. 

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

Article IV — Wages 

1. The minimum wage that shall be paid by any employer to any 
factory, construction or other employee of this Industry in the labor 
operations directly incident thereto shall be not less than forty (40) 
cents per hour except that : 



238 

In the States of Louisiana, Tennessee, North Carolina, South 
Carolina, Georgia, Alabama, Florida, and Mississippi the minimum 
rate for such workers shall be not less than thirty (30) cents per 
hour and in Texas and Virginia not less than thirty-five (35) cents 
per hour. 

2. Accounting, clerical and other office employees, mentioned in 
paragraph 2 of Article III, shall be paid at not less than the follow- 
ing rates in cities of the sizes listed below and their immediate trade 
areas : 

500,000 population and more, not less than $15.00 per week. 

Between 250.000 and 500,000 population, not less than $14.50 per 
week. 

Between 2,600 and 250,000 population, not less than $14.00 per 
week. 

In towns of less than 2,500 population, all wages of such employees 
shall be increased by not less than twenty (20) per cent provided 
that this shall not require wages in excess of $12.00 per week. 

3. No employees of the classes mentioned in paragraph 2 of Article 
III now receiving compensation at a rate in excess of the minimum 
provided in paragraph 2 of this Article IV, next above, shall have 
their compensation reduced on account of any reduction in the weekly 
hours of employment to conform with the requirements of paragraph 
2 of Article IIL 

4. The provisions in paragraphs 1 and 2 of tliis Article IV relating 
to rates of wages shall not apply to apprentices, office boys and girls 
or messengers, not exceeding five (5) per cent in number of the 
employees of any employer. 

5. The minimum wage that shall be paid to office boys and girls 
and messengers, shall be not less than eighty (80) per cent of the 
minimum salary stipulated in paragraph 2 of this Article IV. 

6. Where an employee's total earnings for the pay period, includ- 
ing any earnings from piecework, divided by the total number of 
hours worked during such period, produces a result under the hourly 
wage es-tablished by the emploj^er for said employee, such earnings 
shall be adjusted to equal his established hourly wage, and in no 
case shall any employee engaged in piecework receive less than the 
minimum wage stipulated in paragraph 1 of Article IV. 

7. The hourlj- wage rate or salary of all employees receiving more 
than the minimum rate or salar}^ herein provided shall be equitably 
adjusted, if such adjustments have not alreadj' been made. AH such 
adjustments shall be reported to the Code Authority. 

8. Any system of contracting shop work by which an employee 
undertakes to do a piece of work at a specific price and engages 
other employees to work for him is prohibited by this Code. 

9. No distinction in rates shall be made between male and female 
employees where substantially the same class of work is performed, 
regardless of whether compensation is calculated on an hourly, 
weekly, monthly, or piecework basis. 

10. Nothing in this Article IV, except the limitations provided 
in Section 4 of this Article, shall apply to or affect any employee 
apprenticed to any employer by an indenture made in pursuance 
of the laAvs of an}^ State of the United States, or by a written 
contract under any apprentice system established and maintained 



239 

by such employer, and copies of any such contracts shall be filed 
with the Code Authority. 

11. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light nonproduc- 
tive work at a wage below the minimum established by this Code, 
but such wages shall not be less than eighty (80) per cent of the 
minimum wage provided in paragraph 1 of this Article IV. 

Articlj: V — General. Labor Provisions 

1. No employer shall employ any person under the age of sixteen 
(16) years, or under the age of eighteen (18) years in any occupation 
hazardous in nature or dangerous to health. 

2. Pursuant to subsection (a) of Section 7 of the Act, the following 
provisions are contained in this Code : 

(a) Employees shall have the right to organize and bargain col- 
lectively, through representatives of their own choosing, and shall 
be free from interference, restraint, or coercion of 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. 

(b) No employee and no one seeking employment shall be re- 
quired 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. 

(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 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. 

4. Every employer shall provide for the safety and health of 
employees during the hours and at the places 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 the code. 

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

6. All employers shall post complete copies of this Code in con- 
spicuous places accessible to emploj^ees. 

Article VI — Orgaxizatiox 

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

(a) The Code Authority shall consist of seven (7) members of the 
Association together with one or more, but not more than three (3) 
non-voting appointees of the Administrator who shall serve without 
expense to the industry. Members of the Association elected to the 
Code Authority shall be elected thereto, either prior to and in 



240 

contemplation of the approval of this Code or subsequent to its 
approval, by the active members of the Association at a meeting 
of such members to be called for such purpose, each member of the 
Association to have only one vote at such meeting. 

To the Code Authority as so constituted and established the mem- 
bers of the Industry who are non-membei-s of the Association may 
thereafter, if they so desire, elect either prior to and in contempla- 
tion of the api^roval of this Code or subsequent to its approval, not 
more than two (2) members by a method of selection approved or 
prescribed by the Administrator. 

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

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

(d) 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 the Code, except 
for his own willful misfeasance or nonfeasance. 

POWERS AND DUTIES 

2. The Code Authority shall have the following powers and duties 
in addition to those provided elsewhere in this Code, to the extent 
permitted by the Act: 

(a) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code, in accord- 
ance with the powers herein granted, and to submit the same to the 
Administrator for lis approval together with true copies of any 
amendments or additions when made thereto, minutes of meetings 
when held, and such other information as to its activities as the 
Administrator may deem necessary to effect the purposes of the Act. 

(b) To obtain from members of the Industry for use of the 
Code Authority, for the Administrator in the administration and 
enforcement of the Code, and for the information of the President, 
reports based on periods of one month or multiples thereof, as soon 
as necessary readjustments within the Industry can be made and to 
give assistance to members of the Industry in improving methods, 



241 

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) With the approval of the Administrator to receive complaints 
of violations of the Code, make investigations thereof, provide hear- 
ings thereon and adjust such complaints, and bring to the attention 
of the Administrator for prosecution, recommendations and informa- 
tion relative to unadjusted violations; but in no event shall the 
Code Authority instigate prosecution without notice to and approval 
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 trade associations and agencies the cost 
thereof, provided that nothing herein shall relieve the Code Au- 
thority of its duties or responsibilities under the 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 subdivisions 
thereof, and to delegate to any other administrative authority, with 
the approval of the Administrator, such powers as will promote 
joint and harmonious action upon matters of common interest. 

(f) To secure an equitable and proportionate payment of the 
expenses of maintaining the Code Authority and its activities from 
members of the Industry. The Code Authority may from time to 
time make such assessments on account of such expenses against the 
members of the Industry as it shall deem proper and such assess- 
ments shall be payable as such Code Authority shall specify. The 
part of such expenses which shall be assessed against each member 
of the Industry shall be based on the proportion which the value 
of shipments of the products of the Industry of such member bears 
to the total value of shipments of the products of the Industry of 
all members of the Industry in the same current accounting period 
as determined by the Code Authority. 

(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 mod- 
ification or amendment of this Code. 

(i) In addition to the information required to be submitted to 
the Code Authority as set forth in this Article there shall be fur- 
nished to government agencies such statistical information as the 
Administrator may deem necessary for the purposes recited in Sec- 
tion 3 (a) of the National Industrial Recovery Act. 

(j) 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. 

(k) 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- 



242 

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 — Unfair Practices 

On and after the effective date of this Code, the following prac- 
tices are hereby declared to be unfair methods of competition and 
violations of this Code : 

1. To sell any product (s) or service (s) below the seller's cost 
of such product (s) or service (s). 

The Code Authority shall as soon as reasonably convenient deter- 
mine a uniform method of cost accounting to be used in estimating 
costs for the purpose of this paragraph (1), upon the approval of 
such method by the Administrator. 

2. 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. 

3. For any member of the Industry, which is a subsidiary or 
branch of a company engaged in the operation of rolling mills, to 
use, in the preparation of its estimate of cost, a lower basic price 
for the steel entering into said cost than the said rolling mill com- 
pany would at the same time quote other members of the Industry. 

4. Making or causing or knowingly permitting to be made or 
published any false, materially inaccurate, or deceptive statement 
by way of advertisement or otherwise, whether concerning the grade, 
quality, quantity, substance, character, nature, origin, size, finish, 
or preparation of any product of the Industry, or the credit terms, 
values, policies, or services of any member of the Industry, or other- 
wise having the tendency or capacity to mislead or deceive customers 
or prospective customers shall be an unfair method of competition. 

5. The specific mention of any particular unethical or unfair prac- 
tice in this Article shall not be construed to prohibit the application 
of any of the general prohibitions of unethical practices included in 
this Code. 

Article VIII — Monopolies 

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

Article IX — 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 
Kecovery 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 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 



243 

modifications to be based upon application to the Administrator and 
such notice and hearings as he shall specify, and to become effective 
upon his approval. 

Article X — Effective Date 

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

Article XI — Expiration Date 

This Code shall cease to be in effect at the expiration of two years 
after the date of enactment of the Act, or sooner if the President 
shall by proclamation or the Congress shall by joint resolution de- 
clare that the emergency recognized by the Act has ended. 



Approved Code No. 390. 
Registry No. 1144-1-01. 



O 



Approved Code No. 391 
CODE OF FAIR COMPETITION 

FOR THE 

INSECTICIDE AND DISINFECTANT 
MANUFACTURING INDUSTRY 

As Approved on April 6, 1934 



ORDER 



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

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act ; and do hereby order that said Code 
of Fair Competition be and it is hereby approved; provided, however, 
that the jDrovisions of Article VII, Sections 1, 2 (a) and (b) inclu- 
sive, 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. 

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval recommended : 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

ApHl 6, 1931^. 

51571" 482-36 34 (245) 



REPOBT TO THE PEESIDENT 

The President, 

The 'White House. 
Sir : A Public Hearing on the Code of Fair Competition for the 
Insecticide and Disinfectant Manufacturing Industry, submitted by 
the National Association of Insecticide and Disinfectant Manufac- 
turers, Inc., was conducted in Washington on the 22nd of November 
1933, in accordance with the provisions of the National Industrial 
Recovery Act. This Association claims to represent seventy-five 
(75%) percent of the Industry. 

PROVISIONS or THE CODE AS TO WAGES AND HOURS 

This Code specifies with the exceptions indicated that no employee 
ehall be permitted to work in excess of eight (8) hours per day or 
forty (40) hours in any calendar week. Provision is made, however, 
that these limitations shall not apply during eight (8) weeks of the 
year in which seasonal or peak periods pi ace an unusual and tempo- 
rary burden upon the Industry. It is further provided that in no 
case shall the hours worked in any calendar week exceed forty-eight 
(48) hours during seasonal or jDeak periods and that in respect to 
emergency maintenance and repair shop crews, engineers, firemen 
and electricians, there should be allowed a tolerance of ten (10%) 
percent and further that watchmen shall not be permitted to work 
in excess of fifty -six (56) hours in any calendar week. 

It is provided that there be excepted from the maximum hour pro- 
visions, executives, administration, technical, and supervisory em- 
ployees receiving $35.00, or more per week, and outside salesmen 
and outside service crews. 

There is provision, that employees on an hourly rate of pay shall 
be paid not less than one and one-third times the regular hourly 
rate for work in excess of eight (8) hours in any twenty-four (24") 
hour period. 

The Code provides a minimum wage of forty (40^) cents per 
hour for male employees, and thirty-five (35^) cents per hour for 
female employees. The minimum wage that shall be paid to all other 
employees, except commission sales people, shall be not less than at 
tlie rate of $15.00 per week. 

Where female employees perform substantially the same work as 
male employees they shall receive the same rate of pay. 

It is provided that learners and apprentices, for a period not to 
exceed eight weeks, may be paid not less than 80 percent of the 
regular rates for the work performed, but there is a limitation on 
the total number of such learners and apprentices which prescribes 
that they shall not at any time exceed 5 percent of the total number 
of emijloyees. 

(24G) 



247 

The Code provides an equitable adjustment in all pay schedules 
of factory employees above the minimum shall be made not later 
than thirty days from the effective date by any employers who have 
not heretofore made such adjustment subsequent to June 16, 1933, 
and the first reports of wages required to be filed under this Code 
shall contain all wage increases made since June 16, 1933. 

Persons, who because of age or physical or mental handicap, 
are considered to be of limited earning capacity, may be employed 
by this Industry on light work at a wage below the minimum estab- 
lished by this Code if the employer obtains from the State Au- 
thority, designated by the United States Department of Labor, a 
certificate authorizing his employment at such wages and for such 
hours as shall be stated in the certificate. Each employer is di- 
rected, under the provisions of the Code, to file with the Code 
Authority a list of all such persons employed by him. 

ECONOMIC EFFECTS OF THE CODE 

Insecticide and Disinfectant Manufacturing Industry may be con- 
sidered as having two Divisions — one of which manufactures insec- 
ticides and the other disinfectant materials. While there are 
differences in labor conditions in the two Divisions the marketing 
problems are verv similar. 

It is estimated that there were over 1300 firms engaged in the 
Industry, but investigation has indicated that there are but approxi- 
mately 275 bona fide members. 

This Industry is one which is closely related to the health condi- 
tions of the country. Its products are used in checking the spread 
of diseases and insects which may be carriers. Government experts 
have estimated that the total loss from depredations of insects 
amounts to two billion dollars annually. From this stand-point 
the Industry performs a very real and valuable function. 

It has been reported that in 1929 the aggregate annual sales in 
dollars amounted to $18,360,000. At this time, 1500 employees were 
engaged in the work of this Industry. In 1933 sales for a six month 
period indicated a total annual sales production of $5,200,000 and 
but 1350 employees engaged in the Industry. 

The Industry is subject to two peak periods with the greatest 
demand coming in the spring and fall months. This demand ap- 
pears to be affected by weather conditions and may become acute in 
case of epidemics. 

The Code provisions will reduce the hours worked per week about 
16 percent for factory employees and about 9 percent for office em- 
ployees. Employment should be increased about 25 percent above 
the June, 1933 figures but may still be slightly less than the 1929 
average. The minimum wage rates proposed should result in sub- 
stantially higher minimum earnings ancl somewhat higher average 
earnings than prevailed in 1929. It is estimated that payrolls will 
probably be increased about 33 percent above those of June, 1933. 

The Code provision of a $15.00 per week minimum wage for all 
except factory employees is substantially above the minimum wages 
l^aid office workers in 1929. 



248 



FINDINGS 



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

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Kecovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminisli 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 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 a trade 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, Ad7mnistrator. 
April 6, 1934. 



CODE OF FAIR COMPETITION FOR THE INSECTICIDE 
AND DISINFECTANT 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 Insecticide and Disinfectant Manufacturing 
Industry, and upon approval by the President shall be the standard 
of fair competition for such Industry and shall be binding upon 
every member thereof. 

Article II — Detinitigns 

1. The term " Industry ", as used herein, includes the manufacture 
for sale of household and live stock insecticides, disinfectants, sani- 
tary deodorants, tar oil and pine oil dif)s, and concentrates and/or 
extracts used in the preparation of same. 

2. The term " Insecticide ", as used in this Code, shall include any 
substance or mixture of substances intended to be used for prevent- 
ing, destroying, repelling or mitigating any insects which may 
infest animals, household or other buildings, excluding moth-proof- 
ing substances or compounds, borates, arsenicals, fluorides, cyanides, 
and fumigants. 

3. The term " Disinfectant ", as used herein, means any chemical 
or drug or combination of chemicals or drugs intended to destroy 
one or more kinds of disease germs, or other harmful micro-organ- 
isms, (not including bacterial spores) when applied to all inanimate 
objects that might harbor disease germs. 

4. The term " minimum standard ", as used herein, applies to 
liquid household insecticides for use against house flies, and shall 
mean not less than 60% kill, using the Peet-Grady test. 

5. The term " member of the Industry " includes any individual, 
partnership, association, corporation, or other form of enterprise 
engaged in the Industry, either as an employer or on his own behalf. 

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

7. 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. 

8. The term "Association " as used herein means the National 
Association of Insecticide and Disinfectant Manufacturers, Inc., a 
trade association incorporated under the laws in the State of New 
York and having its headquarters office in New York, N.Y. 

(249) 



250 

Article III — Hours 

Section 1. Xo emploj'ee shall be permitted to work more than six 
(6) days, nor more than forty (40) hours in any calendar week, or 
eight (8) hours in any one day. Provided, however, that these limi- 
tations shall not apply during eight (8) weeks of the 3^ear in which 
seasonal or peak demands place an unusual and temporary burden 
upon the Industry; but in no case shall the hours worked in any 
calendar week exceed 48 hours during such seasonal or peak periods ; 
and provided further, that with respect to emergency maintenance 
and repair shop crews, engineers, firemen and electricians there shall 
be allowed a tolerance of ten per cent; provided further, that watch- 
men shall not be permitted to work longer than 66 hours in any cal- 
endar week, and provided further, that nothing in the foregoing 
maximum hour provisions shall apply to executive, administrative, 
technical and supervisory employees who receive $35.00 or more per 
week; and outside salesmen and outside service crews. 

Section 2. If any employee on an hourly rate of pay works in 
excess of eight (8) hours in any twenty-four (24) hour period, the 
wage paid for excess hours shall not be less than one and one-third 
the regular hourly rate. 

Section 3. No employer shall knowingly engage any employee for 
any time which when totaled with that already performed with 
another emi:)loyer, or employers, exceeds the maximum permitted 
herein. 

Article IV — Wages 

Section 1. The minimum wage that shall be paid factory em- 
ployees shall be at the rate of forty (40) cents per hour for male 
employees, and at the rate of thirty-five (35) cents per hour for 
female employees. 

Section 2. The minimum wage that shall be paid to all other em- 
ployees, except commission sales people, shall be not less than at the 
rate of $15.00 per week. 

Section 3. Learners and apprentices for a period of not to exceed 
eight weeks may be paid not less than 80% of the regular rates for 
the work performed, but in the case of any employer the total number 
of such learners and apprentices at any time shall not exceed 5% 
of the total number of employees. 

Section 4. Equitable adjustment in all pay schedules of factory 
employees above the minimum shall be made not later than 30 days 
from the effective date by any employers who have not heretofore 
made such adjustment subsequent to June 16, 1933, and the first 
reports of wages required to be filed under this Code shall contain 
all wage increases made since June 16, 1933. 

Section 5. This article establishes a minimum rate of pay which 
shall apply, irrespective of whether an employee is actually 
compensated on a time rate, piecework, or other basis. 

Section 6. Female employees performing substantially the same 
work as male emj)Ioyees 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 



251 

at a wage below the minimum established by this Code if the em- 
ployer obtains from the State Authority designated by the United 
States Department of Labor a certificate authorizing his 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. 

Abticle V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industry. No pereon 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 as soon as possible a list of such opera- 
tions or occupations. In any State an employer shall be deemed 
to have complied with this provision as to age if he shall have on 
file a certificate or permit duly signed by the Authority in such State 
empowered to issue employment or age certificates or permits show- 
ing that the employee is of the required age. 

Section 2. As required by Section 7 (a) of Title 1 of the Act, the 
following provisions are conditions of this Code: 

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

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

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

Section 3. No employer shall reclassify employees or duties of 
occupations performed or engage in any other subterfuge for the pur- 
pose of defeating the provisions of the Act or of this Code. 

Section 4. The provisions of this Code shall not supersede any 
law within any State which imposes more stringent requirements 
on employers as to age of employees, wages, hours of work, or as to 
safety, health, or sanitary conditions, or insurance, or fire protection, 
or general working conditions, than are imposed by this Code. 

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

Section 6. 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 his business which is included in this 
Industry. 

Article VI — Administration 

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

Section 2. The Code Authority shall consist of nine (9) members 
to be selected as hereinafter provided, and in addition thereto there 



252 

may be three members without vote, to be appointed by the Adminis- 
trator to serve without compensation from the Industry. 

The Industry members shall be selected by a fair method, subject 
to the approval of the Administrator, under the following conditions: 

(a) Seven members by the members of the Industry who are mem- 
bers of the Association, two of whom shall be from the petroleum 
refining companies who are members of the Industry and members 
of the Association ; and 

(b) Two members from members of the Industry who are not 
members of the Association. 

The members who may be appointed by the Administrator shall 
receive all notices of meetings given to members of the Code 
Authority. 

Section 3. The Association participating in the selection or activi- 
ties of the Code Authority shall (1) impose no inequitable restrictions 
on membership, and (2) submit to the Administrator true copies of 
its articles of association, 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 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 Code, 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 Code, may require 
an appropriate modification in the composition and 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 becom- 
ing members of the Association, and/or by assenting to and comply- 
ing with the requirements of this Code and sustaining their reason- 
able share of the expenses of its creation and administration. Such 
reasonable share of these 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. 

Section 6. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for aiiy 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 Au- 
thority exercising reasonable diligence in the conduct of his duties 
hereunder, be liable to anyone for any action or ommission to act 
under this Code, except for his own willful misfeasance or non- 
feasance. 

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

(a) To insure the execution of the provisions of this Code and 
to provide for the compliance therewith by the Industry under rules 
and regulations approved by the Administrator. 



253 

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

(c) To secure from members of the Industry such information 
and reports as are required for the administration of the Code. 
Such information and reports shall be submitted by members to such 
neutral agency or agencies as may be designated by the Code Au- 
thority. 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 satistical 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. 
Nothing in this Code shall relieve any person of any existing obliga- 
tion to furnish reports to Government agencies. No individual re- 
ports 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 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 nothing herein shall relieve 
the Code Authority of its duties or responsibilities under this Code. 

(e) To secure from the members of the Industry an equitable and 
proportionate payment of the reasonable expenses of maintaining 
the 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 who 
have assented to, and are complying with, this Code. 

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

Section 8. If the Administrator shall determine that any action of 
a Code Authority or any agency thereof may be unfair or unjust or 
contrary to the public interest, the Administrator may require that 
such action be suspended to afford an opportunity for 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. 

Article VII — Trade Practices ^ 

Section 1. The Code Authority shall proceed to establish a uniform 
system of cost accounting in conformity Avith accepted standards, 
for use by the members of the Industry. Upon approval by the 
Administrator, such system of cost accounting shall be used by each 
member of the Industry in determining his costs. The Code Author- 
ity shall survey the Industry to determine, subject to the approval of 
the Administrator, which members thereof are truly representative. 
Upon such determination, the Code Authority shall proceed to gather 
cost data from such members, determined under such cost finding 
procedure, and when such cost data is ascertained the results shall 
be made known to members of the Industry and thereafter, subject 

* See paragraph 2 of order approving this Code. 



254 

to the approval of the Administrator, it shall be unfair competition 
to sell products of the Industry below the lowest reasonable cost 
so determined from such data. 

Section 2 (a) Since it has been the recognized practice of the 
Industry to sell its products on the basis of printed net price lists, 
or price lists with discount sheets which are distributed to the trade, 
each member of the Industry shall, within ten days after the effective 
date, file with the Code Authority a net price list, or a price list and 
discount sheet, as the case may be, individually prepared by him, and 
the Code Authority shall immediately send copies thereof to all mem- 
bers of the Industry concerned. 

Revised net price lists, or revised price lists with discount sheets, 
may 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, but such revised price lists and discount sheets shall 
be filed with the Code Authority five days in advance of the effective 
date thereof, unless the Code Authority shall authorize a shorter 
period. Copies of revised price lists and discount sheets, with the 
effective date specified, shall immediately be sent to all members of 
the Industry concerned, who thereupon may file, if they so desire, 
revisions of their price lists and/or discount sheets, which shall 
become effective upon the date when the revised price list or discount 
sheet first filed shall go into effect. 

(b) Such i^rice lists and discount sheets shall definitely specify 
the prices, discounts and terms which shall apply in all sales except 
as otherwise herein provided. 

(c) All quantity discounts shall be true quantity discounts, based 
on each sale, and sales shall not be accumulated for the purpose of 
applying quantity discounts. No quantity discount shall be allowed 
on any order for insecticides amounting to less than $45.00 except 
under conditions prescribed or approved by the Code Authority. 

(d) No member of the Industry shall sell any products of the 
Industry at a price or prices lower than or upon terms or conditions 
more favorable than stated in his price schedule filed as hereinbefore 
provided. 

(e) Nothing in Sections 1 and 2 of this Article shall be interpreted 
to prevent any sale in good faith of any products that any member 
of the Industry may be discontinuing in his line, or damaged goods 
or inventories which must be converted into cash to meet emergency 
needs, upon such terms and conditions and in such amounts as the 
Code Authority may approve. 

Section 3. It shall be unfair competition for any member of the 
Industry to pay a buyer for a special advertising, merchandising or 
distribution service by such buyer except (a) in pursuant of a written 
contract made in good faith and explicitly defining the service to 
be rendered and the payment therefor, and (b) after such service 
is duly rendered and payment is reasonable. Such payment is 
reasonable in amount if in the case of a printed advertisement the 
payment does not exceed the actual cost of the advertisement, calcu- 
lated on a lineage basis which shall not exceed the actual rate paid 
and shall not exceed the cost of advertising on a lineage basis as 
set forth in the current national rate and data book. In the case 
of circulars, window poster and/or similar printed matter, no allow- 



255 

ance shall exceed the actual cost of printing. No such paj'ment 
shall be made for a counter, shelf, floor, or window display, in excess 
of the regular rate established by the local window display service 
companies. 

Section 4. It shall be unfair competition for any member of the 
Industry to use advertising (whether printed, radio, display or of 
any other nature) or other representation which is inaccurate in any 
material particular or in any way misrepresent any commodity 
(including its use, trade-mark, grade, quality, quantit}'^, origin, size, 
substance, character, nature, finish, material content or preparation), 
credit terms, values, policies, services, or the nature or form of the 
business conducted. 

Section 5. It shall be unfair competition for any member of the 
Industry to exchange or offer to exchange its merchandise for the 
merchandise of another member of the Industry, or for any other 
merchandise other than that of similar ingredient or name. 

Section 6. Requiring a buyer to purchase one product of the 
Industry to influence or force the sale of another product of the 
Industry, or any substitution of a product for one that is ordered 
by the buyer, without his consent or approval, or the imposing on 
the buj'er of any unjust or uneconomic term or condition of sale, is 
unfair competition ; however, nothing in this section shall be deemed 
to prevent the sale of combination packages of products of the 
Industry and special service appliances therefor. 

Section 7. It shall be unfair competition for any member of the 
Industry to sell, or offer to sell, products of this Industry on the 
basis of guaranteed sales, or any bill-back or charge-back arrangement 
whatsoever. 

Section 8. No member of the Industry shall ship goods on consign- 
ment except under circumstances to be defined by the Code Authority 
where peculiar circumstances of the Industry may require the 
practice. 

Section 9. Furnishing special containers, preparing special for- 
mulae for individual buj^ers or consignees, or using special in- 
gredients in standard formulae, as an inducement to the making of a 
contract and/or sale, without adequate charge therefor, is unfair 
competition. 

Section 10. No member of the Industry shall give, permit to be 
^iven, or directly offer to give, any thing of value for the purpose of 
influencing or rewarding the action of any employee, agent or repre- 
sentative of another in relation to the business of the employer of 
such employee, the principal of such agent or the represented party, 
without the knowledge of such employer, principal or party. This 
provision 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 briber}^ as hereinabove 
defined. 

Section 11. The sale or offering for sale of any liquid household 
insecticides, for use against flies, below the " minimum standard " 
as defined in this Code, or of any Pyrethrum products below the 
standards defined by the United States Department of Agriculture, 
is unfair competition. 



256 

Section 12. No member of the Industry shall use advertising or 
other representation Tvhich refers inaccurately in any material par- 
ticular to an}?^ competitors or their commodities, prices, values, credit 
terms, policies, or services. 

Section 13. The dating of any invoice other than the date of ship- 
ment, and the withholding from, or inserting in the invoice, facts 
which make the invoice a false record, wholly or in part of the 
transaction represented on the face thereof, is unfair competition, 
however, June 1st dating may be allowed on all shipments from 
January 1st to June 1st. 

Section 14. The payment or allowance of secret rebates, refunds, 
credits, unearned discounts, or other special concessions or allow- 
ances, including donations or gifts of any nature, whether in the 
form of money, free goods, or otherwise, is unfair competition. 

Section 15. Allowing terms of payment more favorable than 2% 
cash discount 10th proximo or more favorable than net 30th prox- 
imo, is unfair competition; however, members of the industry may 
make special terms to public or semi-public institutions. 

Section 16. No member of the Industry shall maliciously 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 maliciously interfere with or obstruct the performance 
of such contractual duties or services. 

Section 17. Imitating or simulating any design, label or trade 
name used by other members of the Industry, is unfair competition. 

Section 18. It shall be an unfair trade practice to so alter the 
physical characteristics of any advertised or guaranteed product of 
the Industry for the purpose of resale thereof in such a way that 
the effect of such alteration i^ to deceive and/or mislead the pur- 
chaser thereof as to the kind, quality, character, or effectiveness of 
such product. 

Section 19. A tar disinfectant or pine disinfectant or mixture of 
both, shall bear a label containing a plain, conspicuous, correct and 
definite statement of the Bacillus typhosis phenol coefficient thereof, 
as determined by the methods prescribed and promulgated by the 
Secretary of Agriculture. No phenol coefficient shall be required 
upon a label or accompanying printed matter of other than tar 
disinfectant or pine disinfectants, or mixture of both, but may be 
permitted on disinfectants or germicides other than tar disinfectants 
or pine disinfectants under such rules and regulations as may be 
promulgated by the Secretary of Agriculture. Any violation of the 
provisions of this section is unfair competition. 

Article VIII — Export Trade 

Section 1, No provision of this Code relating to prices or terms 
of selling, shipping, or marketing shall apply to sale3 or shipments 
for export trade. 

Section 2. Subject to the approval of the Code Authority, the 
exceptions established by this article shall apply also to sales or 
shipments of materials actually used in the manufacture for export 
trade. 



257 

Article IX- — Modifications 

Section 1. As required by Section 10 (b) of Title I of the Act, 
the President may, from time to time, cancel or modify any order, 
approval license, rule, or regulation issued under said Title. 

Section 2. This Code, except as to provisions required by the Act, 
may be modified on the basis of experience or change in circum- 
stances, such modification to be based upon application by the Code 
Authority, or other interested parties, to the Administrator and after 
such notice and hearing as he shall specify, and become effective 
upon his approval. 

Akticle X — Monopolies 

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

Article XI — ErrECTi\'E Date 

This Code shall become effective on the eleventh day a.fter its 
approval by the President. 

Approved Code No. 391. 
Registry No. 615-01. 

o 



Approved Code No. 392 
CODE OF FAIR COMPETITION 

FOR THE 

REAL ESTATE BROKERAGE INDUSTRY 

As Approved on April 9, 1934 



ORDER 

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

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

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
K. M. Simpson, 

Division Ad^ninistrator. 

April 9, 1934. 

51896° 482-48 34 (259) 



REPOET TO THE PRESIDENT 

The President, 

The White House. 

Sir: The original Code of Fair Competition for the Real Estate 
Brokerage Industry was submitted on August 30th, 1933, by the 
Brokers Division of the National Association of Real Estate Boards 
to cover " Real Estate and Insurance Brokerage " business. This 
Code was made a part of a general code covering related Real 
Estate activities. Subsequently it was deemed advisable to segre- 
gate this blanket Real Estate Code into its various activities and 
entertain applications for Codes of Fair Competition for such 
divisions thereof for which a Code might be applicable. A Code 
for the Real Estate Brokerage Industry was therefore presented by 
the National Association of Real Estate Boards, an unincorporated 
membership society, representing over 10,000 known members of 
the Industry and truly representative of such activity. Several 
revisions of the Code were made prior to the public hearing which 
was held on January 10th, 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 requirements. 

The Real Estate Brokerage Industry includes the representation 
of others for compensation, fee or valuable consideration, in one 
or more transactions as a whole or partial vocation in any of the 
following activities : Selling or offering for sale, buying or offering 
to buy, exchanging or offering to exchange, or negotiating for the 
sale, purchase or exchange of real property; or leasing or offering 
to lease, renting or offering to rent, or negotiating for the lease 
or rental of real property; and the collection of rent, appraising or 
offering to appraise the value of real property, the brokerage or 
writing of insurance, or the negotiating and procuring of loans on 
real property. 

A survey conducted by the Code Committee of the National Asso- 
ciation of Real Estate Boards indicates that the sales brokerage 
business of their 10,641 members in 1928 embraced 236,055 trans- 
actions aggregating in volume of dollars $1,534,621,444. By way 
of indicating the decline in their activity the same number of 
members in 1933 handled 75,263 transactions, aggregating in volume 
of dollars $264,937,184. indicating that the volume in 1933 was 
only 17.2 per cent as great as that in 1928. The same survey indi- 
cated that in 1928 37,583 people were employed of which 23,079 
were commission employees. In 1933 there were 30,370 people 
employed of which 16,555 were commission employees. The same 
survey indicates that this organization wrote 1,055,465 insurance 
policies amounting to $445,445,510. 

(260) 



261 

There is no real labor problem in this Industry as most of the 
offices are not working longer than forty hours per week. Provision 
has, however, been made in this Industry for the pajnnent of over- 
time at the rate of one and one third times the normal rate of any 
employee so employed for all hours worked in excess of forty hours 
per week. The provisions of this Code also provide for an increase 
in the established minimum wage. The Fair Trade Practice provi- 
sions as incorporated in this Code, we believe, will result in the elim- 
ination of certain possibilities now existing for unfair competition. 

Article I. States the purpose of the Code. 

Article II. Accurately defines specific terms applicable to the Ileal 
Estate Brokerage Industry as used in this Code. 

Article III. The maximum hours are limited to forty hours per 
week. In cases of necessity and when additional labor is not avail- 
able or temporary substitution is found impracticable, any employee 
may be permitted to work in excess of the maximum daily and 
weekly hours, provided, that one and one third times the normal 
wage rate per hour is paid for each hour of overtime so worked. 
The limitation of hours does not apply to those employees engaged 
in a managerial, executive or supervisory capacity who receive not 
less than Thirty-Five Dollars per week. 

Article IV. The minimum wages of all employees is dependent 
upon population of cities and towns. 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. 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 manda- 
tory 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. Establishes a Code Authority consisting of eleven 
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 Admin- 
istrator. In addition to the eleven members above named there may 
be one and not more than three members, without vote, and without 
compensation by the Industry, to be appointed by the Adminis- 
trator for such terms as he may specify. In addition to the organi- 
zation of the Code Authority, the powers and duties thereof are 
outlined in this Article. 

Article VII. Sets forth Trade Practices for the Industry. 

Article VIII. This Code and all the provisions thereof are ex- 
pressly made subject to the right of the President in accordance with 
subsection (b) of section 10 of the Act, from time to time to cancel 
or modify any order, approval, license, rule, or regulation issued 
under said Act. 

Article IX. 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. 



262 

Article X. Provisions of this Code shall not supersede or modify 
the standards, requirements, or regulations established by the Real 
lEstate Licensing Laws of any state for the Real Estate Brokerage 
Industry, where such standards, requirements, or regulations are 
more stringent than the provisions of this Code. 

Article XI. This Code shall become effective beginning 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 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 Avhich 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 
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 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, 

A dminis trator. 
April 9, 1934. 



CODE OF FAIR COMPETITION FOR THE REAL ESTATE 
BROKERAGE INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is established as a Code of Fair Competi- 
tion for the Real Estate Brokerage Industry, and its provisions 
shall be the standards of fair competition for such Industry and 
are binding upon every member thereof. 

Article II — Definitions 

Wlierever 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 amendments thereto. 

Section 3. The term "Administrator " means the Administrator 
for Industrial Recovery. 

Section 4. The term " Real Estate Brokerage Industry " or 
" Industry ", means the representation of others, for compensation, 
fee or valuable consideration, in one or more transactions, as a 
whole or partial vocation, in any of the following activities : Selling 
or offering for sale, buying or offering to buy, exchanging or offering 
to exchange, or negotiating for the sale, purchase or exchange oi 
real property; or leasing or offering to lease, renting or offering to 
rent, or negotiating for the lease or rental of real property; and the 
collection of rent, appraising or offering to appraise the value of 
real property, the brokerage or writing of insurance, or the negoti- 
ating and procuring of loans on real property, as an adjunct to the 
Industry. 

Section 5. The term " Member of the Industry " includes all those 
engaged in the Industry either as an employer or on his or its own 
behalf. 

Section 6. The term " Employee " includes anyone engaged in the 
Industry in any capacity receiving compensation for his services, 
irrespective of the nature or method of payment of such compensa- 
tion, except a Member of the Industry. 

Section 7. The term " Employer " includes anyone by whom any 
such employee is compensated or employed. 

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

(263) 



264 

Article III — HorRS 

Section 1. Maximnvi Hours. — On and after the effective date of 
this Code, no emplo3'ee shall be permitted to work in excess of forty 
(40) hours in any one week, or in excess of eight (8) hours in any 
twenty-four (24) hour period, except as herein otherwise provided. 

Section 2. Exceptwns as to Hours. — The limitation as to hours of 
labor as specified in Section 1 of this Article III shall not apply to 
the following : 

(a) In cases of necessity and when additional labor is not avail- 
able or temporary substitution is found impracticable, any employee 
may be permitted to work in excess of the maximum daily and weekly 
hours specified in Section 1 of this Article III, provided, that one 
and one third (IV^) times his normal wage rate per hour shall be paid 
for each hour of overtime so worked. In no case shall any employee 
be permitted to work in excess of forty-eight (48) hours per week. 
All overtime hours worked and all overtime payments made during 
seasonal peak periods shall be reported by the Code Authority to 
the Administrator. 

(b) To employees in establishments in the Industry located in 
towns of less than 2,500 population, not a part of a larger trade area, 
which establishments employ not more than tw^o (2) persons in 
addition to the executive officers, and to employees in a managerial, 
executive or supervisory capacitj^ who receive not less than Thirty- 
Five Dollars ($35.00) per week. 

(c) To outside salesmen, solicitors, collectors or rental men whose 
office duties require less than sixteen (16) hours per week (forty 
per cent (40% ) of the maximum hours as outlirsd in Section 1 of 
this Article III). 

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

Section 4. EmpJoymerit hy 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 empio3^ers in this Industry or other Industries, exceeds the maxi- 
mum i^ermitted 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 less than the following weekly wage : 

In cities of 500,000 population or over, or in the immediate trade 
area of such cities. Fifteen Dollars ($15.00) per week of forty (40) 
hours. 

In cities of 250,000 to 500,000 population, or in the immediate trade 
area of such cities. Fourteen Dollars and Fifty Cents ($14.50) per 
week of forty (40) hours. 

In cities ol 10,000 to 250,000 population, or in the immediate trade 
area of such cities, Fourteen Dollars ($14.00) per week of forty (40) 
hours. 

In towns under 10,000 poulation, Twelve . Dollars ($12.00) per 
week of forty (40) hours. 



i 



265 

In no case shall any employee be paid a lesser weekly rate for the 
forty (40) hour week herein established than such emploj^ee was 
paid as of the effective date of this Code. 

(a) Salesmen, solicitors, collectors, or rental men, compensated on 
a commission basis, shall be exempt from the provisions of Section 1 
of this Article IV. 

(b) Office boys, office girls and messengers, under 18 j^ears of age, 
may be paid not less than eighty per cent (80%) of the respective 
minimum wages specified in Section 1 of this Article IV, and pro- 
vided further that the number of office boys, office girls and mes- 
sengers so paid shall constitute not more than ten per cent (10%) 
of the total number of employees of any office of any one employer, 
but in any case each employer shall be entitled to at least one such 
emploj^ee. 

Section 2. Part time emplo3^ees shall be paid an hourly rate which 
shall be not less than the pro rata amount of the weekly wages speci- 
fied in Section 1 of this Article IV. 

Section 3. Wages Ahove the Minimum. — Equitable adjustments 
in all pay schedules of employees above the minimum fixed in this 
Code 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 any weekly rates or hourly rates be reduced. 
Within sixty (CO) days after the effective date of this Code each 
Member 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 Employees. — Female employees performing 
substantially the same w^ork 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. Handicapped Persons. — A person whose earning ca- 
pacity 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 nim, 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 pay- 
ments other than those voluntarily ordered by the wage earners or 
required by State Laws. Pay periods for wages shall be at least 
semimonthly and for salaries at least once per month. Employers 
shall not withhold wages except as otherwise provided by law. 



266 

Article Y — General Labor Provisions 

Section 1. Child Labor. — No person under 16 years of age shall 
be emploj^ed in the Industry. No person under 18 years of age shall 
be employed at operations or occupations which are hazardous in 
nature or dangerous to health. 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 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, re- 
straint, or coercion of employers of labor, or their agents, in the 
designation of such representatives or in self -organization or in other 
concerted activities for the purpose of collective bargaining, or other 
mutual aid or protection. 

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

(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. Reddssiflcation of Einployees. — 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 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 months after the effective 
date of this Code. 

Section 5, State Laws. — 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 
insurance, or fire protection, than are imposed by tliis 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. Dismissal. — No employee shall be dismissed by reason 
of making a complaint or giving evidence with respect to a violation 
of this Code. 

Article VI — Organization, Constitution, Powers and Dttties or 

the Code Authority 

Section 1. A Code Authority to administer this Code is hereby 
constituted and shall consist of eleven (11) voting members selected 
from members of the Industry truly representative of its various 



267 

interests. Eight (8) of such voting members shall be selected by the 
National Association of Real Estate Boards and three (3) of such 
voting members shall be members of the Industry (not members of 
the National Association of Real Estate Boards). The selection of 
all members of the Code Authority shall be by a fair and equitable 
method of election to be approved by the Administrator. 

Section 2. In addition to the above membership of the Code 
Authority there may be one and not more than three members, 
without vote, and without compensation by the Industry to be 
appointed by the Administrator to serve for such terms as he may 
specify. 

Sectign 3. Each trade association directly or indirectly participat- 
ing in the selection or 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, By-Laws, Rules and Regulations and any amendments 
when made thereto, together with such other information as to mem- 
bership, organization, and activities as the Administrator may deem 
necessary to effectuate the purposes of the Act. 

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}' 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 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 expenses of administration shall be determined 
by the Code Authority, subject to review and approval by the Ad- 
ministrator, on the basis of volume of business and/or such other 
factors as may be deemed equitable. 

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

Section T. 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, after such hearing as he may 
prescribe, any action taken by the Code Authority. If the Admin- 
istrator shall determine at any time 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 



268 

merits of such action and further consideration by such Code Au- 
thority, or agency, pending final action, which sliall not be effective 
unless the Administrator approves, or unless he shall fail to dis- 
approve after thirty (30) clays' notice to him of intention to proceed 
with such action in its original or modified form. 

(a) To make investigations as to the functioning and observance 
of any provisions of this Code at its own instance, or upon com- 
plaint of any person affected, and shall report the result thereof 
to the Administrator. 

(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 the Administrator 
may prescribe. 

(c) To adopt By-Laws and Rules and Regulations for its pro- 
cedure 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 pur- 
suant to this paragraph. 

(d) To obtain from Members of the Industry through a confi- 
dential agency such statistical information and reports as are re- 
quired for the administration of the Code and to provide for 
submission by Members of the Industry of such statistical 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 of the Industry to such 
Federal or 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. 

(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, provide'd 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 make recommendations to the Administrator for the co- 
ordination of the administration of this Code with such other Codes, 
if any, as may be related to the Industry. 

(g) To 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 conduct investigations and call hearings to consider fur- 
ther fair trade provisions submitted by Members of the Industry 
through voluntary agreement for any region or locality and to 
recommend to the Administrator the adoption of such measures to 
govern members of the Industry in any region or locality in their 
relations with each other or with other Industries, and to recommend 
to the Administrator measures for industrial planning, including 
stabilization of employment, and for the general welfare of the 
Industry in any such region, and to make recommendations as to 
the modifications of the Code to be submitted to the Administrator 



269 

by the Code Authority. After such notice and hearings as the Ad- 
ministrator may prescribe, such measures shall become effective as a 
part of this Code upon approval by the Administrator. 

(i) To define local, state or regional code control areas and desig- 
nate the boundaries thereof subject to the approval of the 
Administrator 

(j) To appoint committees to be selected from and by the local 
real estate boards to serve as local code control boards, and where 
no such local real estate boards exist, to appoint local, state or 
regional code control boards, or to appoint committees selected from 
and by state associations affiliated with the National Association 
of Real Estate Boards as such code control boards. All such local 
state or regional boards shall be truly representative of the Industry 
of the code control areas within boundaries to be defined as pro- 
vided for in subsection (i) above. The selection of members and 
committees as local, state, or regional control boards shall be by a 
fair and equitable method of election to be approved by the Adininis- 
trator. Such code control boards shall have the right to prescribe 
fair trade provisions for their respective local, state, or regional 
code control areas under the direction of the Code Authority, and 
with the approval of the Administrator, provided, such fair trade 
provisions shall in no event be less stringent than those set out in this 
Code in Artick VII. 

(k) To provide a method of registration of all members of the 
Industry to be approved by the Administrator. All members of the 
Industry shall be registered with the Code Authority and shall pay 
their reasonable share of the expense of administering this Code as 
assessed by the Code Authority after the approval of the Adminis- 
trator has been given to such method of assessment. 

Article VII — ^Trade Practice Rules 

Section 1. 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, di- 
rectly or indirectly, through any officer, agent or employee. Engag- 
ing m 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. 

Rule 1. No Member of the Industry shall pay commissions or fees 
to, or divide conunissions or fees with anyone except with Members 
of the Industry registered with the Code Authority as specified in 
subsection (k) of Article VI. 

Rule 2. No Member of the Industry shall fail to comply with 
the requirements of the states having Real Estate License Laws. 

RuTjE 3. No Member of the Industry shall use any trade name or 
insignia of membership in any organization of this Industry of 
which he is not a member. 

Rule 4. No Member of the Industry shall accept, give, or charge 
any undisclosed commission, rebate, or direct profit on expenditures 
made for a principal. 

Rule 5. No member of the Industry shall solicit, sell or offer for 
sale real property by offering " free lots " or conducting lotteries for 



270 

the purpose of influencing a purchaser or prospective purchaser of 
real property. 

Rule 6. No member of the Industry shall act in the dual capacity 
of broker and undisclosed principal in any transaction. 

Rule 7. No member of the Industry shall guarantee, authorize 
or permit any person to guarantee future profits which may result 
from the resale of real property. 

Rule 8. No member of the Industry shall place a sign on any 
property offering it for sale or for rent without the written consent 
of the owner or his authorized agent. 

Rule 9. No member of the Industry shall induce any party to a 
contract of sale or lease or to break such contract for the purpose 
of substituting in lieu thereof a new contract with another principal. 

Rule 10. No member of the Industry shall negotiate the sale, ex- 
change or lease of any real property directly with an owner or 
lessor if he knows that such owner or lessor has a written outstand- 
ing contract granting exclusive agency in connection with such 
property with another member of the Industry. 

Rule 11. No member of the Industry shall offer real property 
for sale or for lease without the knowledge and consent of the owner 
or his authorized agent, or on any terms other than those authorized 
by the owner or his authorized agent. 

Rule 12. No member of the Industry shall intentionally publish 
advertising (whether printed, radio, display, or of any other nature) 
which is misleading or inaccurate in any material particular, or in 
any way misrepresent any properties, terms, values, policies, or 
services of the business conducted. 

Rule 13. No member of the Industry shall knowingly withhold 
from or insert in any statement of account or invoice any statement 
that makes it inaccurate in any material particular. 

Rule 14. No member of the Industry shall give, or 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 adver- 
tising except so far as such articles are actuallj^ used for commercial 
bribery as hereinabove defined. 

Rule 15. 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. 

Rule 16. No member of the Industry shall accept employment or 
compensation for appraising real property contingent upon the 
reporting of a predetermined or specified valuation. 

Rule 17. No member of the Industry shall .issue an appraisal 
report on real property, in which the member of Industry has any 
interest, unless such interest is disclosed in the report. 

Rule 18. No member of the Industry shall issue an appraisal 
report on value of land only or improvements only, without endors- 



271 

ing thereon a statement to the effect that such vakiation shall not be 
added to any other valuation of improvements only or land only, 
as the case may be, in determining the value of both together unless 
there shall be also a separate appraisal of the whole property in 
which the valuation of land and improvements are reconciled. 

Article VIII — Modificatiox 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance Avith the 
provisions of subsection (b) of Section 10 of the Act, from time to 
time to cancel or modifj^ any order, approval, license, rule, or regu- 
lation issued under said Act. 

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; 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. 

Section 3. An amendment may be proposed by any interested 
party either to the Code Authority or direct^ by or to the Adminis- 
trator. 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 effec- 
tuate 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 b}^ the Administrator 
after such notice and hearing as he may prescribe. 

Article IX — Monopolies 

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

Article X — State License Laavs 

Provisions of this Code shall not supersede or modify the stand- 
ards, requirements, or regulations established by the Real Estate 
Licensing Laws of any state for the Real Estate Brokerage Industry, 
where such standards, requirements, or regulations are more strin- 
gent than the provisions of this Code. 

Article XI — Effective Date 

This Code shall become effective beginning ten days after its 
approval by the Administrator. 



Approved Code No. 392. 
Registry No. 1743-16. 



o 



Approved Code No. 393 
CODE OF FAIR COMPETITION 

FOR THE 

SOFT FIBRE MANUFACTURING INDUSTRY 

As Approved on April 9, 1934 



ORDER 



Code of Fair Competitiox for the Soft Fibre Manufacturino 

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 Soft Fibre Manufacturing Industry, and 
hearings having been duly held thereon and the annexed report on 
said Code, containing findings with respect thereto, having been 
made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and 
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 Article VII, Section 3 be eliminated therefrom. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
W. A. Harriman, 
Acting Division Administrator. 

Washington, D.C, 

April 9, 1934.. 

61895° 482-49 34 (273) 



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 Soft Fibre Manufacturing Industry in the United 
States, conducted in Washington, D. C, on Friday, March 23, 1934. 

In accordance \vith 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 representative of the industry, the Soft Fibre Manu- 
facturers Institute, as representing over 807c of the capacity of the 
industry. 

GENERAL CHARACTERISTICS OF THE INDUSTRY 

This Industry' is composed of concerns whose products are manu- 
factured from vegetable bast or leaf fibres such as jute, flax, hemp, 
and istle which are processed on soft fibre machinery whether as a 
final process or as a part of a larger or further process. 

The definition so given is for the purpose of differentiating this 
Industry from that knoAvn as the Cordage and Twine Industry 
whose products are wholly or in chief value of Manila (Abaca), 
sisal, henequen, or other hard fibre. 

The raw materials used in the Soft Fibre Industry are practically 
all imported and find their uses in a variety of subsequent industries 
as well as in agriculture throughout the United States. As wrap- 
ping or tying materials they have occupied for the better part of a 
century an important place in world trade. 

Concerns in this Industry are located in approximately ten dif- 
ferent States — in the East, the Middle West, and on the Pacific 
Coast. 

The position of the Industry as to employment is as follows: 

Increase in number of employees, 1933 





Jan. -Mar. 


Oct.-Dec. 




3.229 
1,250 


4,270 




1,670 






Total - 


4,479 


5,840 






Increase 


Percent in- 
crease 




1,041 
320 


32.2 




25.7 






Total 


1,301 


30.2 







(274) 



275 



Iiicrease in number of employees, 1933 — Continued 



Average hourly earnings 



Manufacturing 

Nonmanufacturing 

Total.. 




RESUME 

The labor provisions of the Code provide, with certain necessary 
exceptions, for a forty (40) hour week except that for six (6) weeks 
in any six (6) months period employees may be employed for forty- 
eight (48) hours in any one week provided their average employ- 
ment for such six (G) months period shall not exceed forty-eight 
(48) hours. 

The minimum wage provided by this Code for all employees ex- 
cept learners is thirty-two and one-half (321/^0) cents for the entire 
United States. 

The Code contains a provision providing that no employer within 
the Industry shall pay for any machine operation less than ninety- 
five (95%) per cent of the average hourly rate of the Industry for 
the same operation after equitable adjustments have been made 
above the minimum. It is felt that this clause should be of par- 
ticular benefit to employees. 

Because there is approximately twice the potential productive 
capacity within the Industry than the entire quantity of product 
manufactured in 1929, this Code provides that the hours of opera- 
tion of productive machinery in the Industry shall not exceed eighty 
(80) hours in any one week. It is felt that this is necessary in order 
to effect some stabilization within the Industry. 

The Code contains no Trade Practices. The Deputy Administra- 
tor 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 Avhich tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by 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 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 



276 

(b) Said Industry norinallj^ 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 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, the Code has been approved. 

Hugh S. Johnson, 

A dministrator. 
April 9, 1934. 



CODE OF FAIR COMPETITION FOR THE SOFT FIBRE 
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 Soft Fibre Manufacturing Industry, and 
shall be the standards of Fair Competition for such Industry, and 
shall be binding upon every member thereof. 

Article II — Definitions 

1. The term " Industry " as used herein means the manufacture 
of roving and/or spun yarn, single or plied, and woven fabrics of 
jute, flax, hemp, or other vegetable bast or leaf fibres produced on 
soft fibre machinery, whether as a final process or as part of a larger 
or further process. It shall not include the preparing, spinning, and 
weaving of new or second-hand jute or other fibres into the coarse 
bagging or patches expressly made for covering raw cotton; and it 
shall not include the manufacture of cordage, twines, and/or ply 
and yarn goods commonly known as tarred hemp goods; and it 
shall not include the manufacture of oakum and/or twisted jute or 
hemp packing. 

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

3. The term " employer " as used herein includes anyone by whom 
any such emplo3^ee is compensated or employed. 

4. The term " member of the Industry " as used herein means and 
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. 

5. The terms " President ", "Act ", and "Administrator " as used 
herein mean respectively the President of the United States, the 
National Industrial Recovery Act, and the Administrator for Indus- 
trial Recovery, 

6. The term " productive machinery " as used herein means roving 
and/or spinning spindles used for the roving and/or spinning of 
products of the Industry. 

7. The term " Code Authority " as used herein means the Code 
Authority provided for in Article VI of this Code. 

8. The term " effective date " as used herein is defined to be ten 
days after the approval of this Code by the President. 

(277) 



278 

Article III — Hours 

1. No employee shall be employed in excess of forty (40) hours in 
any one (1) week, except that for six (6) weeks in any six (6) 
months' period any employee may be employed forty-eight (48) hours 
in any one week provided his average employment for such six (6) 
months' period shall not exceed forty (40) hours, except as follows: 

(a) Outside salesmen and employees engaged in managerial, super- 
visory or executive capacity, clerical, accounting and office employees, 
who receive Thirty-Five Dollars ($35.00) or more per week. 

(b) Engineers, electricians, firemen, supervisors, oilers, repair-shop 
crews, elevator operators, shipping crews, and persons engaged in 
cleaning operations who shall not be employed more than forty-four 
(44) hours in any one (1) week, except that for six (6) weeks in any 
six (6) months' period such employees may be employed forty -eight 
(48) hours in any one week, provided the individual average em- 
ployment for such six (6) months' period shall not exceed forty-four 
(44) hours per week. 

(c) Watchmen, who shall not be employed more than fifty-six (56) 
hours per week. 

2. No employee shall be employed or permitted to work for one 
or more employers in the aggregate in excess of the number of hours 
prescribed in this Article. 

3. The maximum hours fixed in the foregoing Sections shall not 
appl}' to any employee on emergency maintenance or emergency 
repair work involving break-down or protection of life or property, 
but in any such cases one and one-third times his normal rate shall 
be paid for hours worked in excess of the maximum hours herein 
provided. 

4. The productive machinery of any mill, plant, or factory in the 
Industry shall not be operated in excess of eighty (80) hours in 
an}^ one week. 

Article IV — Wages 

1. No employee in the Industry shall be paid at less than the rate 
of thirty-two and one-half (321/^^) cents per hour, except: 

(a) Learners during a six weeks' period are excepted from the 
foregoing provisions, but shall be paid not less than 80 percent of 
the minimum wage and the number thereof, paid at a rate of compen- 
sation below the minimum wage, shall be limited in any one factory 
to 5 percent of the total number of emploj^ees in that factory. A 
leaiTier is defined as an emploj^ee who has worked less than six weeks 
in the Industry. 

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

3. Female emj^loyees performing the same work as male employees 
shall receive the same rate of pay as male 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 by the 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 sliall be 



279 

stated in the certificate. Such authority shall be guided by the 
instructions of the United States Department of Labor as to 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. 

5. The wages of employees who on June 16, 1933, received a rate 
of wages in excess of the minimum shall be equitably adjusted, and 
in no case shall hourly rates be reduced, provided, that in no case 
shall any employer pay for any machine operation less than 95 
percent of the average hourly rates of the Industry for the same 
operation after the above equitable adjustments have been made. All 
such adjustments shall be made and reported to the Code Authority 
within sixty (60) days after the effective date of this Code. 

Article V — General. Labor Provisions 

1. No j>erson under sixteen (16) years of age shall be employed 
in the Industry nor anyone under eighteen (18) years of age shall 
be employed at occupations hazardous in nature or detrimental 
to health as determined by existing law. The Code Authority shall 
furnish a list of such occupations within sixty (60) days aft^r the 
effective date of this Code. 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. No employee and no one seeking employment shall be required 
as a condition of emplojmient 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 prCvScribed 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 those provided 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. 

7. Each employer shall keep posted in conspicuous places in his 
plant and office full copies of Articles III. IV, and V of this Code 
in accordance with the regulations of the Administrator. 

8. On and after the effective date, wages shall be exempt from 
any charges and/or deductions by the employer, except upon writ- 
ten consent of the employee or by court order or as required by law. 



280 

9. Every employer shall provide for the safety and health of 
employees during the hours and at the places of their employment. 
Standards for safet}^ and health shall be submitted by the Code 
Authority to the Administrator within six months after the effective 
date of the Code. 

Article VI — Admikistration 

To further effectuate the policies of the Act, a Code Authority 
is hereby constituted to cooperate with the Administrator in the 
administration of this Code. 

1. Organization and Constitution of Code Authority: 

(a) The Code Authority shall consist of six members of whom 
five shall be elected by the Soft Fibre Manufacturers' Institute and 
one shall be elected by the members of the Industry who are not 
members of the Soft Fibre Manufacturers' Institute, but who have 
become entitled to participate in and share the benefits of the Code 
Authority. In each case the method of election shall be submitted 
for the approval of the Administrator. 

(b) Each member of the Code Authority shall serve for one year 
and thereafter until his successor is selected as above provided. 
In case of vacancy by death or resignation the vacancy shall be 
filled in the same manner as original members were selected. 

(c) In addition to membership of the Code Authority as above 
provided, there may be not more than three members, without vote, 
to be appointed by the Administrator, to serve for such period as he 
shall specify, without cost to the Industry. 

2. Each trade or industrial association directl}^ or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, by- 
laws, regulations, and any amendments, when made thereto, together 
with such other information as to membership, organization, and 
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 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. 

4. 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 by assenting to 
and complying with the requirements of this Code and sustaining 
their reasonable share of the exjDenses of its administration. Such 
reasonable share of the expenses 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. 

5. 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 



281 

any other member, officer, agent, or employee of the Code Authority, 
nor shall any member of the Code Authority, exercisino: 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 malfeasance, misfeasance, or non-feasance. 

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

(a) To insure the execution of the provisions of this Code, and 
subject to such rules and regulations as may be established by the 
Administrator, to provide 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 bylaws, rules, and regulations for its procedure and 
for the administration and enforcement of the Code. Three mem- 
bers, exclusive of the members who may be appointed by the Admin- 
istrator, shall constitute a quorum. 

(c) To require from each member of the Industrj^ duly certified 
statistics in the form and as required by the Code Authority on 
production, orders, sales, prices, and conditions of employment. In 
addition to information required to be submitted to the Code Author- 
ity, members of the industry 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 he may designate, providing that nothing in 
this Code shall relieve any person of existing obligations to furnish 
reports to any Governmental Agency. No individual reports shall 
be disclosed to any other member of the Industry or to any other 
party except to such Governmental Agency as may be directed by the 
Administrator. 

(d) Subject to the approval of the Administrator, to secure from 
all members of the Industry an equitable and proportionate payment 
of the reasonable expenses of maintaining the Code Authority and 
its activities. 

(e) To recommend to the Administrator, after submission to the 
Industry and approval by two thirds (%) of all the members of 
the Industry, 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 Administrator measures for industrial 
planning, including stabilization of employment. 

(f) To investigate, subject to such rules and regulations as may 
be established by the Administrator, alleged violations of this Code, 
and to present to the Administrator reports of its investigations of 
such alleged violations. 

(g) To appoint such executives, to. engage such assistants, to 
appoint such agencies (including the Soft Fibre Manufacturers' 
Institute) and to organize such committees (comprising members 
and/or non-members of the Code Authority) as may be appropriate 
to administer this Code. The Administrator may appoint a repre- 
sentative to attend the meetings of such committees without vote 
and without expense to the Industry. 

(h) To investigate and inform the President as to the effect of 
importation of competitive products into the United States. 



282 

(i) To appoint a Trade Practice Committee, which shall meet with 
the Trade Practice Committees appointed under 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 
Administrator as amendments to this Code and such other Codes. 

7. If the Administrator shall determine that any action of the 
Code Authority or any agency thereof is unfair or unjust or con- 
trary to the public interest, the Administrator may require that 
such action be suspended 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 
until 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 — Modifications 

1. This Code and all the provisions thereof are expressly made 
subject to 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. 

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

3. In presenting this Code the members of the Industry do not 
thereby consent to any modification thereof and they reserve the 
right to object individually or jointly to any such modification. In 
presenting this Code and in complying therewith the members of the 
Industry do not consent to any modification of this Code after final 
approval, unless such modification is assented to by the members of 
the Industry who are entitled to participate in and share the benefits 
of the activities of the Code Authority.^ 

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 ten (10) days after its approval 
by the President. 

Termination of this Code shall not release any member of the 
Industry from the payment of any unpaid assessment theretofore 
made. 

Approved Code No. 393. 
Registry No. 242-1-02. 



* Deleted — See paragraph 2 of order approving this Code. 

o 



Approved Code No. 394 
CODE OF FAIR COMPETITION 

FOR THE 

LIGHTNING ROD MANUFACTURING INDUSTRY 
As Approved on April 19, 1934 



ORDER 



Approving Code of Fair Competition for the Lightning Rod 
Manufacturing Industry 

An application havings been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 10. 1933, for approval of a Code of 
Fair Competition for the Lightning Rod Manufacturing Industry, 
and hearings having been duly held thereon and the annexed report 
on said Code, containing findings with respect thereto, having been 
made and directed to the President : 

NOW. THEREFORE, on behalf of the President of the United 
States. I. Hugh S. Johnson, Administrator for Industrial Recovery, 
])ursuant 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 prcjvisions and will promote the policy and pur- 
pose 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, 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; provided, 
further, that the continued participation of the Lightning Rod 
Manufacturers' Association in the Code Authority after thirty days 
from the effective date of this Code shall be contingent upon its 
amending its Constitution and By-Laws to the satisfaction of the 
Administrator. ^ Hugh S. Johnson, 

Admin isfraf or for Industrial Recovery. 

Approval recommended : 
A. R. Glancy, 

D'tvision Administrator. 

AVashington, D.C, 

April 19, 193Jf. 

bmZ2° 482-101 34 (283) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Lightning Rod Manufacturing Industry, the Hearing having been 
conducted thereon in AVashington, D.C., on March 19, 1934, in accord- 
ance witlr the provisions of the National Industrial Recovery Act. 

RESUME or CODE AS TO HOURS AND WAGES 

The Code provides that eight (8) hours shall constitute the normal 
number of working hours per day, forty (40) hours the normal 
number of working hours per week; except that employees may work 
not to exceed forty-eight (48) hours in any one week in any six (6) 
weeks in the six (6) months period beginning the first of May and 
the first of November. These provisions are applicable to all em- 
ployees except outside salesmen, watchmen, who shall work not more 
than fifty-six (56) hours in any one Aveek, persons in executive, ad- 
ministrative, supervisory, or technical capacities, who receive not 
less than $35.00 per week, employees engaged in emergency main- 
tenance, or emergency repair work, involving breakdowns, and pro- 
tection of life and property. 

The rate of pay provided for production labor is forty (40) cents 
per hour. Learners shall be paid 80% of the wages herein provided 
to be paid but the number of learners shall not exceed 59r of the total 
number of factory employees. Time and one half will be paid pro- 
duction labor for hours worked in excess of the number of hours 
specified herein above. 

All other employees, except commission salesmen, will be paid 
at rates not less than $15.00 per week, except that offi e boys and 
girls may be paid at not less than 80% of said weekly minimum wage, 
provided that the number of office boj's and girls shall constitute 
not more than 5% of the total number of office employees, but in 
any case each employer shall be entitled to one office boy or girl. 

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 Lightning Rod Manufacturing Industry as defined in the 
Code includes the building, manufacturing, selling, repairing, in- 
stalling, and servicing by the manufacture of Lightning Conduc- 
tors and Supplies manufactured by such manufacturers. The In- 
dustry customers are mostly farmers, but contrary to popular con- 

(284) 



285 

ception are not confined solely to them, many large construction 
units, large churches, water towers, memorial monuments, and sim- 
ilar projects are protected by Lightning Conducting Equipment. 

The investment in the Industry is approximately $500,000.00 and 
the number of Avage earners in normal times is about 200 people 
Avith an estimated annual payroll of approximately $100,000.00. 

In 1929, which is considered a normal year, operations were at a 
rate of approximately 50% of capacity, with a volume of production 
of about $1,295,000. ' The sales of the Industry declined 30% from 
1929 to 1933. 

I believe that the Code is fair to Industry, to Labor, and to the 
Public, and is in accordance with the interest 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 Xational Industrial Recovery Act, including 
removal of observation to the free floAV 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 purj^ose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
imder adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agri- 
cultural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otlierwise rehabilitating industry. 

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

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant group is 
an industrial 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, therefore, I have approved the Code provided, 
however, that the provisions of Article VII, insofar as they prescribe 



286 

a waiting period between the filing with the Code Authority and the 
effective date of revised price list or revised terms and conditions of 
sale be stayed pending my further order either within a period of 
sixty days from the effective date of this Code or after the comple- 
tion of a study of open price association now being conducted b}' the 
National Recovery Administration; i)rovided, further, that the con- 
tinued participation of the Lightning Rod Manufacturers' Associa- 
tion in the Code Authority after thirty days from the effective date 
of this Code shall be contingent upon the amending of its Constitu- 
tion and Bylaws to the satisfaction of the Administrator. 
Respectfully, 

Hugh S. Johnson, Adminutrafor. 
April 19, 1934. 



CODE OF FAIR COMPETITION FOR THE LIGHTNING 
ROD 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 Lightning Rod Manufacturing Industry and its provisions 
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 " Lightning Rod Manufacturing Industry ", 
as used herein, means the building, manufacturing, selling, repairing, 
installing and servicing, by manufacturers, of lightning conductors 
and supplies manufactured by such manufacturers. 

Section 2. The term " member of the industry " includes any 
individual, partnership, association, corporation, receiver, trustee, 
or other form of enterprise engaged in the industry, either as an 
employer, or on his or its own behalf. 

Section 3. The term " employer ", as used herein, includes every 
individual, partnership, association, corporation, receiver, trustee, 
or other form of enterprise engaged in the industry. 

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 term "Association ", as used herein, means the 
Lightning Rod Manufacturers Association, or its successor. 

Section 6. The terms "Act ", " President ", and "Administrator '* 
mean, respectively, Title I of the National Industrial Recovery Act, 
the President of the LTnited States, and the Administrator for 
Industrial Recovery. 

Article III — Hours 

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

Section 2. Because of peak demands, it is further provided that 
employees may work not to exceed forty-eight (48) hours in any 
one week in any six (6) Aveeks in the six (6) months' period begin- 
ning the first of May and the first of November. 

Section 3. All employees shall be paid at the rate of time and 
one-half for all hours worked in excess of forty (40) hours per 
week or eight (8) hours per day (except as hereafter provided). 

Section 4. The provisions of this Article shall not apply to em- 
ployees in executive, administrative, supervisory or technical capac- 
ities who are paid not less than thirty-five dollars ($35.00) per 
week, and outside sales employees. 

(287) 



288 

Section 5, Watchmen shall not work more than fifty-six hours 
in any one week nor more than six (6) cla3'^s in any one week. 

Section 6. The provisions of this Article shall not apply to any 
employee engaged in emergency maintenance or emergency repair 
work, involving breakdowns, and protection of life and property, 
provided one and one half times the normal rate shall be paid for all 
time worked in excess of the maximum hours herein provided for 
said employee. 

Section 7. Em.ployment hy Several Eviployers. — No emploj'er 
shall knowingly permit any employee to work for any time which 
when totaled with that already performed with another employer 
exceeds the maximum permitted herein. 

Article IV — Wages 

Section 1. No employee engaged in the manufacture of products 
of this industry, and in labor operations directly incident thereto, 
shall be paid less than at the rate of forty (40) cents per hour, 
except as otherwise herein provided. 

Section 2. It is provided that learners, for a period of not to 
exceed thirty (30) days, shall be paid not less than eighty (80) per- 
cent of the minimum wage, and that the number of learners shall 
not exceed five (5) percent of the total number of employees, and 
provided further that each employer may employ a minimum of 
one (1) learner. 

Section 3. Minimuin Wage for Clerical and Office Employees. — 
The minimum wage that shall be paid by any employer to all other 
employees except commission sales people, shall be at the rate of not 
less than fifteen dollars ($15,00) per week, provided, however, that 
office boys or girls shall be paid not less than eighty (80) percent 
of such minimum Avage, but the number of such office boj's or girls 
shall not exceed five (5) percent of the total number of employees 
covered by the provisions of this section, and provided that each 
employer may employ a minimum of one (1) office boy or girl. 

Section 4. Pieceivork Compensation — Minimum Wages. — This 
Article establishes a minimum rate of pay which sliall apply, irre- 
spective of whether an employee is actually compensated on a time, 
rate, piecework or other basis. 

Section 5. Wage Adjustments Ahove Minimum. — Equitable ad- 
justment of compensation of employees receiving more than the 
minimum rates of pay shall be made by all employers who have not 
heretofore made such adjustments, and all employers shall within 
thirty (30) days after aj^proval 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 G. 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 
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 emplojqnent at such 
wasres and for such hours as shall be stated in the certificate. Such 



289 

authority shall be guided by instructions of the United States 
Department of Labor in issuing certificates to such persons. Each 
emplo3^er shall file monthly with the Code Authority a list of all 
such persons emploj^ed by him, showing the wages paid to, and the 
maximum hours of work for such employee. 

Section 7. Female Einployees. — 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. 

Article V — General Labor Provisions 

Section 1. Child Labor Provisim^. — 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 thirty (30) 
days after approA^al of this Code, a list of such operations or occupa- 
tions. In any State an emploj^er 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 emplo3^ment or age certificates or permits showing that the em- 
ployee is of the required age. 

Sections. Provisfans 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 organization 
of his own choosing ; and 

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

Section 3. Reclassification of Employees. — No employer shall 
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. /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 Adminis- 
trator 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 emplo5^ers as to age of employees, wages, hours of work, or as to 
safety, health, sanitary or general working conditions, or insurance, 
or fire protection, than are imposed by this Code. 



290 

Section G. Posting. — ^^Vithin ten (10) days of the effective date, 
all employers shall post and thereafter maintain, complete copies of 
this Code with any subsequent modifications, in conspicuous places 
accessible to employees. 

Article VI — Okgaxizatiox, Powers and Duties of Code ArTHORiTT^ 

Section 1. Code Aufhorifij. — Durinjr the period not to exceed sixty 
(GO) days following the effective date, the Code Committee of the 
Industry shall constitute a temporary Code Authority until the Code 
Authority is elected. There shall l3e constituted within the sixty 
(GO) da}^ period a Code Authority consisting of five (5) members 
to be elected as hereinafter provided. The members of the Code 
Authority first elected shall serve until the following annual meeting 
of the Association and thereafter members of the Code Authority 
shall be elected as hereinafter ])rovided, at each annual meeting of 
the Association to serve until the following annual meeting. The 
members of the Code Authority shall be elected in the foiloAving 
manner: 

(a) Two (2) members Avho are not members of the Association by 
a majority vote of members of the industry Avho are not membei*s of 
the Association, present in person, or by proxy, each member to have 
one vote. 

(b) Three (3) members by majority vote of members of the Asso- 
ciation ]3resent in person or by proxy, each member to have one vote. 

In addition thereto the Administrator may appoint one or more 
members of the Code Authority Avho shall be without vote and be 
given a reasonable notice of and may sit at all meetings of the Code 
Authority. 

A vacancy in the membership of the Code Authorit}^ may be filled 
by a majority vote of tlie remaining members of the 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. 

Section 2. Assockitions. — Each trade or industrial association di- 
rectly or indirectly participating in the selection or activities of 
the Code Authority shall (1) impose no inequitable restrictions on 
admission to membership, and (2) submit to the Administrator true 
coj^ies of its Articles of Association, by-laws, regulations, and any 
amendments when made thereto, together with such other informa- 
tion as to membership, organization, and activities as the Admin- 
istrator may deem necessary to effectuate the purposes of the Act. 

Section. 3. Representative Code Authority. — In order that the 
Code Authority shall at all times be trul}^ 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 4. Participation in Code. — Any member of the industry 
is and shall be eligible for membership in the trade association of 

> See iiaiagraph 2 of order approviug tliis Code. 



291 

the Lightning Rod Manufacturing Industry, and there shall be no 
inequitable restrictions on admission to such membership, and all 
members of the industry assenting to this Code shall be entitled to 
participate in and share the benefits of the activities of the Code 
Authority and all members of the industry subscribing to the Code 
or participating in or sharing in any way in the benefits of the ac- 
tivities of the Code Authority or participating in the selection 
thereof shall bear a reasonable share of the expenses of adminis- 
tering the Code and of making amendments thereof and additions 
thereto. Such reasonable share of the expenses of the Code Author- 
ity shall be determined by the Code Authority, subject to review by 
the Administrator, on the basis of gross sales volume of business 
and/or such other factors as may be deemed equitable, and such 
funds shall be collected and administered by and through the machin- 
ery of the Code Authority of the industry. 

Sectiox 5. 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 opportimity 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 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 Autliority 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. 

Section 7. Powers and Duties. — The Code Authority shall have 
the following powers and duties in addition to those elsewhere 
provided in this Code: 

(a) To adopt by-laws and rules and regulations for its pro- 
cedure and for the administration of the Code and compliance of 
the industry with provisions of the Act, in accordance 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 meeting when held, and 
such other information as to its activities as the Administrator may 
deem it necessary to effect the purposes of the Act. 

(b) To obtain from members of the industry, through an impar- 
tial agency, such information and reports as are required for the 
Administration of the Code and to provide for submission by mem- 
bers of such information and reports as the Administrator may 
deem necessary for the purposes recited in Section 3 (a) of the 
Act, which information and reports shall be submitted by members 
to such administrative and/or government agencies as the Adminis- 
trator may designate; provided that nothing in this Code shall 
relieve any member of the industry of any existing obligations to 



292 

furnish reports to any government agency. All individual reports 
shall be kept confidential as to members of the industry by the 
impartial agency appointed by the Code Authority to obtain such 
reports, and only general summaries thereof may be published, 
except that such reports shall be furnished to such governmental 
agencies as may be directed by the Administrator. 

(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 
prosecution, recommendations and information relative to unad- 
justed violations. 

(d) To use and appoint such trade associations and other agencies 
as it deems proper for the carrying out of any of its activities pro- 
vided 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 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 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 obtain an equitable and proportionate payment of the 
expenses of maintaining the Code Authority and its activities from 
members of the industry. 

Section 8. Appeals. — 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 — Price Lists 

Each member of the industry shall within ten (10) days after the 
effective date of this Code publish for the benefit of all interested 
parties and file with the Code Authority a net price list and all 
other conditions of sale, or a price list and discount sheet and all 
other conditions of sale, as the case may be. individually prepared 
by him, showing his current jH'ice or prices and discounts and terms 
of sale and payment and the Code Authority shall immediately send 
copies thereof to all known manufacturers of such specified product. 
Such net price list or price list and discount sheets as the case may 
be shall separately state (a) net prices or discounts from list to dis- 
tributors, (b) net prices or discounts from list to consumer. 

Revised price lists and/or discount sheets and/or all other condi- 
tions of sale may be filed from time to time thereafter with the Code 
Authority by any manufacturer of such product, to become effective 
upon the 5th day thereafter. 

Copies of sucli revised price lists and/or discount sheets and/or 
all other conditions of sale w^ith notice of the effective date specified 
shall be immediately sent to all known manufacturers of such prod- 



293 

net, any of whom may file if he so desires to become effective upon 
the effective date when the revised price list and/or discount sheet 
and/or all other conditions of sale first filed shall go into effect, re- 
visions of his price lists and/or discount sheets and/or all other con- 
ditions of sale establishing prices or prices and discounts not lower, 
or conditions of sale not more favorable than those established in the 
revised price lists and/or discount sheets and/or all other conditions 
of sale first filed. 

No member of the industry shall sell to any purchaser by any 
means whatsoever any product of the industry at a price other than, 
or at a discount other than, or on more favorable terms than as set 
forth in published price lists of such member at the time set out and 
in force under the conditions applicable to such sale therein set 
forth. 

No member of the industry shall publish a price or term, or con- 
tinue in effect a price or term which will result in a purchaser pay- 
ing for the goods received less than the cost thereof to the member of 
the industry publishing such price sheet; provided, hoAvever, that 
obsolete, defective and/or discontinued items or lines Avhich now or 
hereafter may be in stock may be sold below cost and without publi- 
cation of prices and 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 Code Authority, together 
with the description thereof, dates of manufacture and prior sale 
volume; and provided, further, that 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 equal de- 
sign, size, character, quality 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 Code Authority a state- 
ment 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 
memb?r or members of the industry which shall be claimed to form 
the justification.- 

Article yill— Trade Practice Rules 

General Definition. — For all purposes of the Code the acts de- 
scribed in this Article shall constitute unfair trade practices. Any 
member of the industry who shall directly, or indirectly through 
any officer, employee, agent, or representative, knowingly use, em- 
ploy, or permit to" be employed, any of such unfair practices, shall 
be guilty of a violation of the Code. 

Rule 1. Inaccurate Labeling. — No member of the industry shall 
mark, brand or pack any product or commodity in any manner for 
the purpose or with the effect of misleading or deceiving purchasers 
with respect to the brand, grade, quality, quantity, origin, size, 
material, content, substance, or preparation of such products pur- 
chased, whether " domestic " or " foreign." 



■ Set' paragraph 2 of order approving this Code. 



294 

Rule 2. Misrcprese?ifaf/on. — No iiK'niber of the industry shall sub- 
stitute, or cause to be substituted, materials inferior or superior to 
those specified by the purchaser. 

Rule 3. Inaccurate Reference to Competitorfi. — No member of the 
industry shall use advertisino; or other representation Avhich refers 
inaccurately in any material particular or disseminates false or mis- 
leadino- information relative to any competitor or their products, 
sellin<; prices, values, credit standing;, credit terms, ability to perform 
work, conditions of employment. ])olicies or services. 

Rule 4. Inaccurate Advertising. — No member of the industry 
shall publish advertisin<>; (whether jirinted, radio, display, or of 
any other nature), which is misleadin<^ 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 5, Espwnacje. — No member of the industry shall spy upon 
any other member of the industry, for the purpose of securing the 
names of the customers of such member, their addresses, or the 
nature of the business being transacted by such other member. 

Rule 6. Bait Advertising. — No member of the industry shall use ad- 
vertising or selling methods or credit terms which have the capacity 
or tendency to deceive or mislead the customer or prospective customer. 

Rule 7. Secret Bebates. — No member of the industry shall otfer 
to make any secret payment or allowance of a rebate, refund, com- 
mission, credit, unearned discount, or excess allowance, whether in 
the form of money or otherwise, for the purpose of influencing a 
sale, nor shall a member secretly extend to any customer any special 
service or privilege not extended to all customers of the same class. 

Rule 8. Selling on Consignment. — No member of the industry 
shall ship goods on consignment, except under circumstances to be 
defined by the Code Authority and approved by the Administrator. 

Rule 9. Interference with Another s C&ntracts. — No member of 
the industry shall attempt to induce the breach of. an existing con- 
tract between a competitor and his customer, nor shall any such 
member interfere Avith or obstruct the performance of such con- 
tractual duties or services. 

Rule 10. 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 knoAvledgc of such employer, 
principal or part}'. This provision sluill 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 the 
commercial bribery as hereinabove defined. 

Rule 11. Cash Discounts. — No member of the industry shall give 
cash discounts under any condition in excess of ten (10) percent. 



295 

Rule 12. False Billing. — No member of the industry shall with- 
hold from or insert in any quotation or invoice any statement that 
makes it inaccurate in any material particular. 

Article IX — Selling Below Cost 

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 sj'stem and methods 
have been formulated and approved by the Administrator, full de- 
tails concerning them shall be made available to all members. There- 
after all members shall determine and /or estimate costs in accord- 
ance with the principles of such methods. 

When the Code Authority determines that an emergency exists 
in this industry and that the cause thereof is destructive price-cut- 
ting such as to render ineffective or seriously endanger the main- 
tenance of the provisions of this Code, the 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 hear- 
ings 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 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 
sucli 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. 

Article X — Code Jurisdiction 

If any manufacturer or employer of labor in the Liglitning Rod 
Manufacturing Industry is also an employer of labor in any other 
industry, the provisions of this Code shall apply to and affect only 
that part of his business which is included in the Lightning Rod 
Manufacturing Industry. 

Article XI — Modification 

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



296 

cumstances, such modifications to be based upon application to the 
Administrator and such notice and hearing as he shall specify, and 
to become effective on ajDproval of the President. 

Article XII — MoxoroLiES, Etc. 

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

Article XIII — Effective Date 

This Code shall become . elFective eleven days after its approval 
by the President. 

Approved Code No. 394. 
Registry No. 1308-1-01. 

O 



Approved Code No. 395 
CODE OF FAIR COMPETITION 

FOR THE 

WADDING INDUSTRY 

As Approved on April 19, 1934 



ORDER 



Code of Fair Competition for the Wadding Industry 

An ap])liration 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 Wadding 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 
Avith the pertinent provisions and wull 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, 
Adniimsti'ator for Industrial Recovery. 

Approval recommended : 
W. A. Harriman, 

Acting Division Administrator. 

Washington, D.C, 

April 19, 193Jf. 

53633" 482-102 34 (297) 



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 Wadding Industry, conducted in Washington, D.C., 
on January 30, 1934, 

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

The Code which is attached, was presented by dulj'' qualified and 
authorized representatives of the Industry, claiming to represent 95 
per cent of the capacity of the Industry. 

GENERAL CHARACTERISTICS Or THE INDUSTRY 

The manufacture of wadding includes the processing of cotton 
or other fibre on cards or garnetts, producing a layer of felt sized 
on one or both sides, and in some cases, having a sheet of paper or 
cloth applied to one or both sides of the felt. Its principal uses are 
for automobile upholstering, the manufacture of clothing pads or 
padding, quilted products, air or liquid filtering and other uses. 

There are five manufacturers in this Industry, while three of this 
number comprise 95 per cent of the investment and the package 
and dollar sales of the Industry. These three manufacturers also 
compose the membership of the Association which was organized 
during the World War to cooperate with the Administration dur- 
ing that period. The Industry represents a total investment of 
approximately $3,000,000.00. 

Tkis Industry is subject to decided seasonal variations due to the 
demands of the two principal outlets, namely, the clothing, fur- 
rier, and kindred Industries, and the Automobile Industry. Un- 
fortunately, the products cannot be economically or conveniently 
stored in anticipation of the needs for those produces. 

In assenting to this Code, this Industry reduces its work week to 
an average of 40 hours from that of 51 hours prevailing during the 
year 1929, while the average mininmm wage rate per hour paid 
to employees since July 1933 has been raised to 48V3f^ P^r hour from 
32^ per hour, which was the average minimum wage rate paid 
employees in 1929. 

During 1929, the total number of known men employed by mem- 
bers of the Industry was 3G0, while during the year 1933, the total 
known number of men employed by members of the Association 
in the Industry, averaged 425, although the volume of business done 
dui-ing 1932 and 1933 was 58% less than the volume done in 1929. 

^298) 



299 



PROVISIONS OF THE CODE 



The labor provisions of this Code are similar in many ways to 
those of the Code of Fair Competition for the Bedding Industry, 
because of the fact that many of the manufacturers of wadding are 
also manufacturers of products which go into the manufacture of 
mattresses. 

The minimum wage in the northern section of the United States is 
321/2^ per hour while the minimum wage in the southern section is 
30^ per hour. 

Provisions relative to maximum hours call for a work week of 40 
hours with a maximum of 48 hours for 8 weeks during any 6 months 
period, as a peak period is necessar}^ to the Industry in view of the 
seasonal demand as hereinbefore outlined. 

Because of the few manufacturers in the Industry, and because of 
the limited field for the outlet of the products, this Industry has 
felt it unnecessary to submit but one Trade Practice. This Trade 
Practice prohibits the use of second hand material, which has been 
detrimental to this and similar Industries for many j^ears. 

FINDINGS 

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

I find that : 

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

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



300 

(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 dTninistraior. 
April 19, 1934. 



CODE OF FAIR COMPETITION FOR THE WADDING 

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 Wadding Industry, and shall be the 
slandard of fair competition for this industry and shall be binding 
upon every member thereof. 

Article II — Definitions 

1. The t€rm " Wadding Industry " or " Industry " as used herein 
means and includes the manufacture of wadding. The term " wad- 
ding " as used herein means a layer of felt (usually cotton fibre) 
carded on a card or garnett, w^hich laj^er is sized (glazed) on one 
or both sides. Wadding shall also include the above material with 
a sheet of paper or cloth applied to one or both sides and adhering 
firmly to the sized layer so as to form a unified whole. Wadding 
is generally put up in the form of bales or rolls, folds or sheets, 
and sold for the following purposes: Clothing pads and padding; 
air or liquid filtering; hospital use, quilted products, and similar 
uses. 

2. The term "Association ", as applied to the Industry means the 
National Association of Wadding Manufacturers. 

3. The term " Secretary " means the Secretary of such Associa- 
tion. 

4. The term " member of the Industry " includes but witliout 
limitation, any individual, partnership, association, corporation, or 
other form of enterprise engaged in the Industry as above defined, 
whether as an employer or on his own behalf. 

5. The term " employee " as used herein includes anyone engaged 
in the above defined Industry in any capacity receiving compensation 
for his serAdces irrespective of the nature or method of payment of 
such compensation. 

6. The term " employer " as used herein includes any one by whom 
any such employee is compensated or employed in this Industry. 

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 Adminis- 
trator for Industrial Recovery. 

Article III — Hours 

1. No employee shall be permitted to work in excess of forty (40) 
hours per week except that for eight (8) weeks during any six (6) 
months' period emplojees may be permitted to work forty-eight (48) 
hours per week. The foregoing provisions shall not apply to : 

(a) Outside salesmen, or employees engaged in emergency main- 
tenance or emergency repair work or persons employed in a man- 

(301) 



302 

agerial, supervisory or executive capacity who earn not less than 
thirty-five ($35.00) per Aveek. 

(b) Firemen, engineers, cleaners, truck drivers and shipping 
crews who may be permitted a ten per cent (10%) tolerance over the 
hours specified. 

(c) Watchmen who shall not be permitted to work more than 
fifty-six (56) hours a week. 

Aeticle IV — ^Wages 

1. No employee shall be paid at less than the rate of thirty-two 
and one-half cents (32i/2^) per hour in the Northern Section of the 
United States, nor thirty cents (30^) per hour in the Southern 
Section of the United States. 

(a) The Southern Section is defined as comprising North Caro- 
lina, South Carolina, Florida, Georgia, Alabama, Tennessee, Missis- 
sippi, Arkansas, Louisiana, Oklahoma, Texas, and Virginia; and 
the Northern Section is defined to include all other states in the 
United States proper including the District of Columbia. 

(b) Learners Avithout previous experience in this Industry may 
be employed at a minimum wage rate of eighty per cent (80%) 
of the minimum wage rate prescribed by this Article provided that 
the period of learning shall be not more than thirty (30) days, and 
provided further, that the number of such learners shall, at no time, 
exceed five per cent (5%) of the total employees in any particular 
plant in this Industry; provided further, that no employee may 
serve more than one learning period within this Industry. 

2. A person whose earning capacity is limited because of age, 
physical or mental handicap, or other infirmity, may be employed 
on light Avork at a Avage below the minimum established by this 
Code, 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. 

3. 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. 

4. Rates of pay in excess of the minimum hereinbefore prescribed 
shall be equitably adjusted within sixty (60) days in order to pre- 
serA^e equitable differentials. All such adjustments made since June 
1, 1933 shall be reported to the Code Authority. 

Article V — General Labor Provisions 

1. On and after the effective date of this Code no employer shall 
employ anyone under the age of sixteen (16) years, nor anyone under 
eighteen (18) years of age at operations or occupations hazardous 
in nature or dangerous to health. In any State any employer shall 



303 

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 of age certificates or permits 
showing that the employee is of the required age. 

2. In compliance with Section 7 (a) of Title I of the Act: 

(a) Employees shall have the right to organize and bargain col- 
lectively through representatives of their own choosing, and shall 
be free from the interference, restraint, or coercion of employers 
of labor, or their agents, in the designation of such representatives 
or in self-organization or in other concerted activities for the 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 re- 
frain from joining, organizing, or assisting a labor organization of 
his own choosing, and 

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

3. Every employer shall provide for the safety and health of em- 
ployees during the hours and at the plax^es 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 the Code. 

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

5. Each employer shall post in conspicuous places full copies of 
Articles III, IV, and V of this Code and such other Articles and 
in accordance with such regulations as are required by the Adminis- 
trator. 

Article VI — Administration 

1. To further effectuate the policies of the Act, a Code Authority 
representing said Industry is hereby constituted to cooperate with 
the Administrator in the administration of this Code. 

(a) The Code Authority shall consist of four (4) members, three 
(3) members to be elected by and from the members of the Associa- 
tion, and one (1) to be elected by and from the nonmembers. The 
method of election shall be approved by the Administrator. 

(b) The Administrator may appoint one (1) member without vote 
or expense to the Industry to represent the Administrator on the 
Code Authority. 

(c) The Code Authority shall be elected within twenty (20) days 
after the approval of this Code. 

(d) If the representative of the nonmember group to the Code 
Authority is not elected within 30 days after the approval of the 
Code, the Board of Directors of the Association may elect a member 
to the Code Authority to fill that place, subject to the approval of 
the Administrator. 

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) sub- 
mit to the Administrator true copies of its articles of association 



304 

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 necessarj^ 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 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 as provided in 
Section I (a) of this Article by assenting to and complying with the 
requirements of this Code and sustaining their reasonable share of 
the cost and expenses of its administration. Such reasonable share 
of the expenses 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. 

5. Poicers and Duties of the Code Authority. — The Code Author- 
ity 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 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 powers to 
enforce the provisions of this Code or of the Act. 

(b) 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 of any person affected and shall 
report the same to the Administrator. 

(c) 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. 

(d) Subject to approval of the Administrator, to assess upon 
members of the Industry an equitable and proportionate share of 
the reasonable cost and expenses of maintaining the Code and the 
activities of the Code Authority, which amount shall be paid by 
each member of this Industry. 

(e) 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 neces- 
sary for the purpose 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 indi- 
vidual reports shall be disclosed to any other member of the Industry 
or any other party except to such governmental agencies as may be 
directed by the President. 



305 

(f) To present to the Administrator from time to time recom- 
mendations for modification of this Code, based on conditions in 
the Industrj^ as they may develop which will tend to effectuate the 
operation of the provisions of this Code. 

(g) To cooperate with the Administrator in regulating the use 
of any National Recovery Administration Code Insignia solely by 
those members of the Industry who are complying with this Code. 

6. Any member of the Industry shall have the right to appeal to 
the Administrator, under such rules and regulations as he may 
prescribe, in respect to any rule, regulations, or other course of 
action, issued or taken by the Code Authority. 

7. Nothing contained in this Code shall constitute the members 
of the Code Authority or members of the Association participating 
in the activities of the Code Authority partners for any purpose. 
Nor shall any member of the Code Authority or members of the 
Association participating in the activities 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 hereinbefore 
mentioned. Nor shall any member of the Code Authority exercising 
reasonable diligence in the conduct of his duties hereunder, be 
liable to anyone for any action or omission to act under this Code, 
except for his own willful misfeasance or nonfeasance. 

8. If the Administrator shall determine that any action of a code 
authority or any agencj'^ 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 — Unfair Trade Practices 

1. The following practice constitutes an unfair method of compe- 
tition for members of the Wadding Industry and is prohibited : 

(a) The use of second-hand or previously used cotton in the manu- 
facture of Wadding. Previously used cotton is defined to mean any 
cotton which has been manufactured and used for the purpose for 
which it was manufactured or in the manufacture of any finished 
product which has been used by a consumer. This provision shall 
not prohibit the use of the by-products produced in the manufacture 
of new fabric nor material reclaimed from new fabric, and it shall 
not prohibit the use of burlap, manchester or iute bagging, but it does 
prohibit the use of second-hand material such as might be reclaimed 
from old comforters, mattresses, bedding of any kind or automobile 
upholstery or upholstery furniture, clothing or the like. 

Article VIII — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions of subsection (b) of Section 10 of the National Industrial 



306 

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

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

Article IX 

No prevision in this Code shall supersede any State or Federal 
law which imposes on employers more stringent requirements than 
are imposed by this Code. 

Article X — 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 XI — Special Agreements 

Reasonable notice of the submission of any agreement authorized 
to be submitted to the President by virtue and under authority of 
Section 4 (a) of the Act shall be given to the Code Authority of this 
Industry by any member of the Industry who proposes to make 
such agreement. 

Article XII — Effectia^ Date 

This Code shall become effective on the second Monday after 
its approval and shall continue in effect during the period of the 
National Industrial Recovery Act. 



Approved Code No. 395. 
Registry No. 299-34. 



o 



Approved Code No. 396 
CODE OF FAIR COMPETITION 

FOR THE 

MILK FILTERING MATERIALS AND THE DAIRY 
PRODUCTS COTTON WRAPPINGS INDUSTRY 

As Approved on April 19, 1934 



ORDER 



Code of Fair Competition for the Milk Filtering Materials and 
THE Dairy Products Cotton Wrappings 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 Milk Filtering Materials and The Dairy 
Products Cotton Wrappings 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 

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 Adniinistrator. 

Washington, D.C, 

AfHl 19, 1934. 

53634° 482-103 34 (307) 



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 Milk Filtering Materials and Dairy Products Cotton 
"Wrappings Industry, held in Room 3204, Department of Commerce 
Building, on February 1, 1934. The Code which is attached was 
presented by duly qualified and authorized representatives of the 
Industry, complying with statutory requirements, said to represent 
ninety-three percent or more in volume of the Industry. 

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

THE INDUSTRY 

The Industry comprises 17 concerns, having an investment in 1932 
of $400,000. In 1929 the Industry provided employment for 135 
employees. This figure has increased to about 150 workers in 1932. 
Aggregate annual sales have increased from $450,000. in 1929 to 
about $500,000. in 1932. 

PROVISIONS OF THE CODE 

The Code provides for a minimum wage of 35 cents per hour. No 
hourly or weekly compensation shall be reduced because of any re- 
ductions in the number of hours of work per week and wage differ- 
entials existing prior to June 16, 1933, are to be maintained for all 
employees receiving $35 or less per week. 

Hours of work for all employees are limited to 40 hours per week 
and eight hours per day with the following exceptions: 

Employees engaged exclusively in a supervisory capacity re- 
ceiving $35 per week or more and outside salesmen are not limited 
as to hours, employees on emergency repair work are excepted from 
the maximum hour provisions but are to be paid time and one-third 
for all overtime work, watchmen are permitted to work not more 
than 56 hours per week. During any six weeks in any year employ- 
ees are permitted to work 48 hours per week, but not more than 
eight hours per day, provided that at least time and one-third shall 
be paid for all hours worked in excess of 40 hours per week. 

Representation on the Code Authority is provided for all mem- 
bers of the Industry. There are no highly restrictive provisions. 
The Code provides for an open price association in the Industry, 
but permits prices to be revised without a waiting period. 

(308) 



309 

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 on 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 sanction and supervisions, by elimi- 
nating unfair competitive practices, by promoting the fullest pos- 
sible utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, bj^ improving standards of 
labor, and by otherwise rehabilitating industry. 

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

(c) The Code as approved complies in all respects with the 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 menibership 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 Milk 
Filtering Materials and the Dairy Products Cotton Wrappings 
Industry has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
April 19, 1934. 



CODE OF FAIR COMPETITION FOE THE MILK FILTER- 
ING MATERIALS AND THE DAIRY PRODUCTS COTTON 
WRAPPINGS 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 Milk Filtering Materials and the 
Dairy Products Cotton Wrappings 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 " Milk Filtering Materials and Dairy Products Cotton 
Wrappings Industry " referred to hereinafter as the " Industry " 
means and includes the manufacture and the original sale of cotton 
and flannel discs, rolls and squares and flannel bags, tubes, pieces 
and rolls sold exclusively for use in the filtering of milk and the 
manufacture from woven piece goods and the original sale of 
cotton cheese bandages and other cotton goods sold exclusively for 
use in manufacturing, wrapping and packing dairy products. The 
term " Industry " shall not include the weaving of fabrics from 
which the above products are manufactured. 

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

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

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

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

Article III — Hours 

1. No employee shall work or be permitted to work in excess ofl 
40 hours per week or 8 hours in any 24 hour period except as 
follows : 

(a) Employees engaged exclusively in a managerial or executive 
capacity who receive thirty-five dollars ($35.00) or more per week 
and outside salesmen. 

(b) During peak periods, not to exceed six (6) weeks in any one 
year, employees may work forty-eight (48) hours per week, but in 

(310) 



311 

no case shall they work more than eight (8) hours in any one day, 
provided, however, that at least time and one-third shall be paid 
for all hours worked in excess of forty (40) hours per week. 

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

(d) Watchmen shall not work more than fifty-six (56) hours 
per week. 

2. No employee shall work more than six (6) days in any seven 
(7) day period. 

3. No employee shall work for a total number of hours in excess 
of the number of hours prescribed for each week and day, whether 
employed by one or more employers. 

Article IV — Wages 

1. No emplo3!'ee shall be paid at less than the rate of thirty-five 
cents (35^) per hour. 

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

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. No hourly or weekly rates of compensation for employment now 
in excess of the minimum wages herein provided shall be reduced 
notwithstanding that the hours worked in such employment may 
be hereby reduced except, in such establishments as have been work- 
ing since September 1, 1933 on a schedule of fewer maximum hours 
and higher minimum wa^es in which case the weekly earnings shall 
not be reduced. Wage dift'erentials existing prior to June 16, 1933, 
shall at least be maintained for all employees receiving thirty-five 
($35.00) dollar^ or less per week. Each member of the Industry 
shall file with the Code Authority within forty-five days of the 
approval of this Code a report showing that this provision is being 
complied with. 

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 in operations or occupations which are hazardous in 
nature or dangerous to health. The Code Authority shall submit to 
the Administrator within ninety (90) days from the effective date 
a list of such operations and occupations. In an}'^ State an em- 
ployer shall be deemed to have complied with this provision if he 
shall have on file a certificate or permit duly issued by the authority 
in such State empowered to issue employment or age certificates or 
permits, showing that the employee is of the required age. 

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 



312 

or in self-organization or in other concerted activities for the pur- 
j)ose of collective bargaining or other mutual aid or protection. 

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

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

5. No provision in this Code shall supersede any State or Federal 
law which imposes more stringent requirements as to age of em- 
ployees, v>a^es, hours of work, or as to safety, health, sanitary or 
general working conditions, or insurance or fire protection, than are 
imposed by this Code. 

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

7. Each employer shall post in conspicuous places copies of Arti- 
cles III, IV, and V of this Code. 

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

Article VI — Administration 

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

(a) The Code Authority shall include five (6) individuals, or 
such other number as may be approved from time to time by the 
Administrator, to be selected as hereinafter set forth, and such 
additional members without vote and without expense to the In- 
dustry, not to exceed three, as the Administrator in his discretion 
may appoint to represent such groups or interests or such govern- 
mental agencies as he may designate. 

(b) Four members of the Code Authority shall be selected by the 
Milk Filtering Materials Institute from among its membership, and 
one member may be elected by members of the Industry who are not 
members of the Institute by a method approved or prescribed by the 
Administrator. 

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

(d) In order that the Code Authority shall at all times be truly 
representative of the Industry and in other respects comply with the 
provisions of the Act, the Administrator may prescribe such hearings 
as he may deem proper ; and thereafter if he shall find that the Code 



313 

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) 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 administra- 
tion. The 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 to be taken into consideration. 

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

(a) With a view to informing the President and the Adminis- 
trator as to the observance of this Code, and as to whether the In- 
dustry is taking appropriate steps to effectuate the declared policy 
of the Act, each member of the Industry shall furnish duly certified 
reports in such form as may be required by the Code Authority and 
approved by the Administrator. The Institute is hereb}^ constituted 
the agency for the collection and receipt of such reports and for the 
forwarding of such reports to the Administrator. All such reports 
shall be held in strict confidence by the Institute, except when they 
shall be required by the Administrator or the Code Authority in 
connection with a violation of the provisions of this Code. 

(b) The Code Authority may recommend to the Administrator 
any action or measure 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 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. 

(c) The Code Authority is also set up to cooperate with the 
Administrator in making investigations as to the functioning and 
observance of any pro\dsions of this Code, and its own instance or 
on complaint of any person affected, and to report the same to the 
Administrator, subject to the regulations of 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 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. 

3. In addition to the information required to be submitted to the 
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 Act, to such Federal and State agencies as the 
Administrator may designate ; but nothing in this Code shall relieve 
any person of any existing obligation to furnish reports to govern- 
ment agencies. 

4. If the Administrator shall determine that any action of the 
Code Authority or any agency thereof may be unfair or unjust or 



314 

contrary to the public interest, the Administrator may require that 
such action be suspended to afford an opportunity for investigation 
of the merits of such action and further consideration by the Code 
Authority or agency pending final action which shall not he effective 
unless the Administrator ap])roves or unless he shall fail to dis- 
approve after thirty days' notice to him of intention to proceed 
with such action in its original or modified form. 

Article VII — Unfair Trade Practices 

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

1. Secret Rebates. No member of the Industry shall secretly offer 
or make any payment or allowance of a rebate, refund, commission, 
credit, unearned discount or excess allowance, whether in the form 
of money or otherwise, nor shall a member of the Industry secretly 
offer or extend to any customer any special service or privilege 
not extended to all customers of the same class. 

2. Inaccurate Advertising. No member of the Industry shall 
publish adA'ertising (whether printed, radio, display or of any other 
nature), which is 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; and no member shall use adver- 
tising or selling methods or credit terms which tend to deceive or 
mislead the customer or prospective customer. 

3. Interference with Another's Contracts. No member of the In- 
dustry 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. Connnercial Bribery. No member of the Industry shall give, 
permit to be given, or directly or indirectly offer to give anything 
of value for the purpose of influencing or rewarding the action of 
any employee, agent or representative of another in relation to the 
business of the employer of such employee, the principal of such 
agent or the represented party, without 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 advertising except so far as such articles are actually used for 
commercial bribery as hereinabove defined. 

Aritcle YIII 

1. Within thirty (30) days after the effective date of this Code 
each member of the Industry shall file with the Code Authority a 
schedule of his own individual prices, terms, discounts and condi- 
tions of sale for the products of the Industry. Such price lists may 
be revised at any time and shall become effective on the date of mailing 
to the Code Authority by registered mail. The Code Authority shall 
at once send copies of all price lists to all members of the Industry 
and such price lists shall be available to any interested party. 



315 

No member of the Industry shall sell or offer for sale any product 
of the Industry below the prices, or on any other terms, discounts, 
and conditions of sale than in his own individual price list. 

Article IX 

No provision of this Code shall be interpreted or applied in such 
manner as to promote or permit monopolies or monopolistic prac- 
tices, or to eliminate or oppress small enterprises, or to discriminate 
against them. 

Article X — Modifxcatign 

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 Act, from time to time 
to cancel or modify any order, approval, license, rule, or regulations 
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 
modification to be based upon application to the Administrator and 
such notice and hearing as he shall specify, and to become effective on 
approval of the Administrator. 

Article XI 

This Code shall become effective the eleventh day after the date on 
which it shall have been approved. 



Approved Code No. 896. 
Registry No. 223-02. 



O 



Approved Code No. 397 
CODE OF FAIR COMPETITION 

FOR THE 

SPRAY PAINTING AND FINISHING EQUIPMENT 
MANUFACTURING INDUSTRY 

As Approved on April 19, 1934 



ORDER 



Approving Code of Fair Competition for the Spray Painting and 
Finishing Equipment 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 Spray Painting and Finishing Equipment 
Manufacturing Industr3\ 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 Avill promote the policy and purposes of 
said Title of said Act ; and do hereby order that said Code of Fair 
Com])etition be and it is hereby approved; provided, however, that 
the provisions of Article IX, "Section 1, paragraph (b) insofar as 
they prescribe a waiting period between the filing of price lists and 
the effective date of revised price lists or revised terms and conditions 
of sale be and they are hereby staj^ed for a period of sixty (60) days, 
or pending my further Order. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
A. R. Glancy, 

D ivis io n A dniinis trator. 

April 19, 1934. 

53948° 482-111 34 (317) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Spray Painting and Finishing Equipment Manufacturing Industry 
as revised after a Public Hearing held in Washington on the 15th 
day of December, 1933, according to the provisions of the National 
Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Empioj'ment is limited to 8 hours per day and 40 hours per week 
"with the exception of those employees engaged in emergency main- 
tenance, or emergency repair work, but to provide for seasonal de- 
mands, tolerance is permitted for 6 weeks in any 26 weeks' period. 
Firemen, truckmen and shipping clerks are allowed a tolerance of 
10 percent in hours. Watchmen are not permitted to work in excess 
of 56 hours per week. 

Time and one-half is paid for any work in excess of 8 hours per 
day or 40 hours per week. 

Minimum wages are established at 40 cents for males and 35 cents 
for females. Clerical employees shall not be paid less than $15.00 
per v;eek. 

ECONOMIC EFFECT OF THE CODE 

The Industry has been established for less than 25 years. The 
principal use of the products of the Industry is in the spraying of 
paints and lacquers. 

It is estimated the Industry employed during its peak in 1929 
approximately 1100 employees. This dropped to approximately 500 
in 1933. The Industry has been operating at an average of 40 hours 
a week since the adoption of the President's Reemployment Agree- 
ment, so that additional employment can only be obtained through 
general resumption of business. 

It is estimated that under the wage rates established by the Code, 
the wages of the Industry will be raised to the 1929 level. 

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 

(318) 



319 

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

(b) Said Industry normally employs not more than 50,000 em- 
plo3^ees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including Avithout limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant associa- 
tion is an industrial association truly representative of the aforesaid 
Industry; and that said association imposes no inequitable restric- 
tions on admission to membership therein, 

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

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

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

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

Hugh S. Johnson, 

Administrato-r. 
April 19. 1934. 



CODE OF FAIR COMPETITION FOR THE SPRAY PAINT- 
ING AND FINISHING EQUIPMENT 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 Spray Painting and Finishing Equipment 
Manufacturing Industry, and shall be the standards of fair compe- 
tition for such Industry and shall be binding upon every member 
thereof. 

Article II — Definitions 

The term " Spray Painting and Finishing Equipment Manufac- 
turing Industry ", as used iierein, includes the manufacturing and/or 
assembling for sale of spray painting and finishing equipment units 
and of component and repair parts and accessories of such units by 
manufacturers or assemblers of such units, and such related branches 
or subdivisions thereof as may from time to time be included under 
the provisions of this Code, except such equipment as may be specifi- 
cally included under another or other approved Code or Codes. 

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. 

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 
anyone engaged in the Industry as above defined, either as an em- 
ployer or on his own behalf. 

The term " Association ", as used herein, means the " National 
Spray Painting and Finishing Association ". 

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. 

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, except as herein otherwise provided, 
nor more than six (6) days per week. 

Section 2. The maximum hours fixed in Section 1 shall not apply 
to emplo3^ces engaged as research technicians who receive more thaii 
thirty-five ($35.00) dollars per week or to those employees who are 

(320) 



321 

engaged in an executive, managerial or supervisory capacity, who 
receive more than thirty-five ($35.00) dollars per week, and outside 
salesmen. 

Section 3. The maximum hours fixed in Section 1 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-half (II/2) times the 
normal rate of pay shall be paid for hours worked in excess of 
eight (8) hours per day and forty (40) hours per week. 

Section 4. The maximum hours fixed in Section 1 sliall not apply 
for six (6) weeks in any twenty-six (26) weeks' period, during which 
time overtime shall not exceed eight (8) hours in any one (1) week; 
provided, however, that in any such special case at least one and 
one-half (1^^) times the normal rate of pay shall be paid for hours 
worked in excess of eight (8) hours per day and forty (40) hours 
per week. 

Section 5. Watchmen shall not be permitted to work in excess of 
fifty-six (56) hours per week. 

Section 6. Firemen, truckmen and shipping clerks may be per- 
mitted 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 excess of eight (8) hours 
per day and forty (40) hours per week. 

Section 7. No employer shall knoAvingly 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. 

Section 8. No accounting, clerical or office emploj'ees shall be em- 
ployed in excess of forty (40) hours in any one (1) week or nine (9) 
hours in any one (1) day. Eight (8) hours constitute a normal 
w^ork day. 

Section 9. Employers who personally perform manual Avork or 
are engaged in mechanical operations shall not exceed the prescribed 
maximum number of hours. 

Article IV — Wages 

Section 1. Except as herein otherwise provided, no clerical or 
office employee shall be paid less than at the rate of fifteen ($15.00) 
dollars per week, nor any male employee at less than the rate of 
fort}^ (40) cents per hour, nor any female employee at less than the 
rate of thirty-five (35) cents per hour. All rates which are now 
in excess of these minima shall be promptly and equitably adjusted 
and in no case shall they be decreased. Within sixty (60) days 
after the effective date of the Code every employer in the Industry 
shall file a complete statement of all such equitable adjustments with, 
the Code Authority, which shall furnish same to the Administrator 
at his request. 

Section 2. Office boys and girls shall be paid at a rate not less 
than eighty (80) per cent of the minimum salary provided for 
clerical or office employees in Section 1 ; provided that the number 
of such office boys and girls so paid shall constitute not more than 
five (5) per cent of the total number of office and clerical employees 



322 

of any one employer, but in any case, an employer shall be entitled 
to employ one (1) such employee. 

Section 3. This Article establishes minimum rates of pay regard- 
less 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 rate of pay as male 
employees ; and where they displace men, they shall receive the same 
rate of earnings as the men they displace. 

Section 5. A person whose earning capacity is limited because of 
age, physical or mental handicap, or other infirmity, may be em- 
l^loyed 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 
is'suing 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. 

ARTiciiE V — General Labor Provisions 

Section 1. As required by Section 7 (a) of Title I of the National 
Industrial Recovery Act, it is hereby provided : 

That 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. 

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 organiza- 
tion of his own choosing. 

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. No person under sixteen (16) years of age shall be 
employed in the Industry nor any one under eighteen (18) years of 
age at operations or occupations hazardous in nature or detrimental 
to health. The Code Authority shall submit to the Administrator 
within ninety (90) days after approval of this Code a list of such 
occupations. In any "State an employer shall be deemed to have 
complied with this provision if he shall have on file a certificate 
or permit duly issued by the Authority in such State empowered 
to issue employment or age certificates or permits, showing that the 
employee is of the required age. 

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



323 

Section 4, Emploj'ers shall not reclassify employees or duties of 
occupations performed, or engage in anj^ otlier subterfuge so as to 
defeat the purposes or provisions of the Act or of this Code, 

Section 5. Every emploj-er shall provide for the safety and health 
of employees during the hours and at the places 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 the Code. 

Section 6. Each employer shall comply with all rules and regula- 
tions of the President or the Administrator as to posting this Code 
or portions thereof. 

Article VI — Administration 

To effectuate further 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^ Cotistitution and Poioers of the Code 
Authority. — (a) The Code Authority shall consist of eight (8) in- 
dividuals or such other number as may be approved by the Admin- 
istrator (in addition to not to exceed three (3) members to be ap- 
pointed by the Administrator if he so elects, to serve without vote). 
Four (4) shall be members of the Board of Directors of the Associa- 
tion and shall be appointed by said Board; two (2) shall be the 
President and Vice-President, respectively, of said Association, and 
two (2) shall be representatives of, and elected by, members of the 
Industry who are not members of that Association (provided any of 
said non-members desire such representation, and signify their will- 
ingness to pay their pro rata share of the cost of administering this 
Code, as determined by the Code Authority, subject to review by the 
Administrator). 

The Code Authority shall complete its organization by electing its 
officers. A majority of the voting members of the Code Authority 
shall constitute a quorum at any meeting. A majority vote of the 
voting members of the Code Authority shall decide any question 
relating to the Industry subject to the right of any person aggrieved 
or affected thereby to have such decision reviewed and approved or 
disapproved thereupon by the Administrator. 

(b) Members of the Industiy 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 factors as may 
be deemed to be equitable. 

(c) The said Association, or any other trade association directly 
or indirectly 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 Con- 
stitution and By-Laws, and any amendments thereto, together with 
such other information as to membership, organization and activi- 



324 

ties as the Administrator may deem neces^uiy to effectuate the 
purjDoses of the Act. 

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

(e) For the purpose of keeping the Administrator informed as to 
the observance of this Code each member of the Industry shall, when 
information is called for by the Administrator or the Code Author- 
ity, furnish certified reports to the Code Authority. The Code 
Authority may appoint a disinterested agency for receiving such 
information. Information with respect to sales volume, cost and 
other details of operation which may be furnished by any member 
of the Industr}^ to such disinterested agencies shall be considered 
confidential and shall not be divulged to the Code Authority or to 
any member of the Industry but only to the duly appointed and con- 
stituted representative of the Administrator. 

Section 2. The Code Authority shall have the following further 
i duties and powers to the extent permitted by the Act : 
I (a) To adopt By-Laws and rules and regulations for its pro- 
1 cedure and for the administration of the Code. 

j (b) To represent the Industry in conferring with the President 
I or his agents with respect to the administration of this Code and in 
' respect of the National Industrial Recovery Act and any regulation 
' issued thereunder. 

(c) To hear complaints and attempt to adjust the same, under 
such rules and regulations as may be prescribed by the Administrator. 

(d) To obtain from members of the Industry such information, 
data and reports as may be necessary for the administration of this 
Code. Such information, data and reports as may be submitted by 
a member shall not be revealed, except in summary. The disinter- 
ested agency receiving this information is hereb}^ charged with the 
duty and responsibility of receiving such information, data and 
rei^orts and keeping same confidential, but such information, data 
and reports shall at all times be available to the Administrator. 

In addition to the information required to be submitted to the 
Code Authorit}^ there shall be furnished to Government Agencies 
such statistical information as the Administrator ma}^ deem neces- 
sary for the purposes recited in Section 3 (a) of the Act but nothing 
in this Code shall relieve any person of any existing obligation to 
furnish reports to Government Agencies. 

(e) To coordinate the administration of this Code with such codes, 
if any, as may be adopted by any subdivision of this Industry or 
any related Industry, with a vicAv to providing joint and harmonious 
action on all matters of common interest, all with the approval of 
the Administrator. 

(f) To study tlie effect of the various provisions of this Code on 
the Industry and consider proposals for amendments or modifica- 
tions and make recommendations from time to time thereon which 
amendments or modifications will become effective as part of the 



325 

Code, upon approval of the Administrator after such notice and 
hearing as he may specify. 

(g) To make rules and regulations necessary for the administra- 
tion and for facilitating the enforcement of this Code, under such 
rules and regulations as may be prescribed by the Administrator, 
subject to the right of any affected person to appeal to the Admin- 
istrator. 

(h) 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. 

Section 3. 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 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 disajDprove after thirty (30) days' notice to him of intention to 
proceed with such action in its original or modified form. 

Article VII — Export Trade 

Except as may be subsequently set forth in a specific or supple- 
mentary Export Code for the Industry, the provisions of the 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. The 
terms " export " or " export sales " shall include all shipments to 
outside the United States of America and those shipments to the 
Canal Zone or Alaska. 

Article VIII, and Sections G, 8, 9, 11, 12, 13, 14, 15, 17, 18, 19, 21, 
and 22 of Article X shall not apply to direct export sales of any 
product or to sales of any product destined ultimately for export. 

Articiji VIII — Cost Accounting 

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 formulated or 
adopted by the Code Authority and approved by the Administrator. 
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 companies 
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. 



326 

Article IX — Trade and Marketing Practices 

1. (a) AYithin five (5) days after the effective date of this Code, 
each member of the Industry shall file with the Code Authority his 
prices, discounts, and other terms and/or conditions of sale, for 
standard products of the Industry or products made under recog- 
nized standard specifications, manufactured and/or assembled for 
sale by him. Simultaneously he shall mail a copy thereof to other 
members of the Industry, whose names can be ascertained by diligent 
search, and to such of his purchasing trade as he may deem desirable. 

(b) Revised prices, discounts, and other terms and/or condi- 
tions of sale, may be filed with the Code Authority at any time by 
any member of the Industry, provided they are to become effective 
not earlier than five (5) days after the filing thereof. Simultane- 
ously he shall mail a copy thereof to other known members of the 
Industry, whose names can be ascertained by diligent search, and to 
such of his purchasing trade as he may deem desirable.^ 

(c) The Code Authority shall make the effective prices, discounts, 
and other terms and/or conditions of sale available to all interested 
parties, as each may be concerned. 

(d) Except where otherwise specifically provided for in this Code, 
selling or offering to sell products of the Industry at prices, dis- 
counts, and terms, and/or on other conditions, other than those 
which are on file with the Code Authority as being effective, is 
an unfair method of competition. 

(e) Other members of the Industry who file with the Code Au- 
thority revised prices, discounts, and other terms and/or conditions 
of sale, prior to the effective date of such revised price lists, dis- 
counts, and other terms ancl/or conditions of sale, filed by another, 
as provided in paragraph (b) of this Section 1, may make their 
revised prices, discounts, and other terms and/or conditions of sale 
effective on the same date as those first filed. 

(f) The provision of paragraph (d) of this Section shall not 
apply with respect to an}^ addition to selling prices, so filed, due 
to any excise, sales, occupational or privilege tax which may be 
imposed upon the seller, in connection with any sale, under Federal 
or State law. 

2. Trans]portatw)i allowances. — Terms of sale shall provide that 
the selling price be f.o.b. seller's factory, but this shall not operate 
to prevent the seller from meeting actual competition due to differ- 
ence in published transportation charges of public service carriers 
applying from the respective points of origin in competition to 
the destination of the products. 

3. The Code Authority shall establish by any means it deems prac- 
ticable a merchandising plan for the designation of dealers, whole- 
salers or distributors and manufacturers of equipment and such 
other designations as seem fitting. This plan to be submitted to the 
Administrator for approval or disapproval. 

Article X — Unfair Methods of Competition 

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

* See paragraph 2 of order approving this Code. 



327 

1. Inducing Breach of Contract. — Inducing or attempting to in- 
duce the breach of a commercial contract bet\Yeen a member of the 
Industry and anyone with whom he has a contract. 

2. Mishranding. — Marking, branding, or failing to brand, for the 
purpose or with the effect of misleading or deceiving with respect 
to the quantity, quality, size, style, grade or substance of such 
products. 

3. False Advertising. — To make, cause or knowingly permit to be 
made or published any false, untrue or deceptive statement, directly 
or implied, by way of advertisement or otherwise, concerning the 
grade, quality, quantity, substance, size, style, extent of usage or 
sale, capacity or performance of any product of the Industry having 
a tendency and capacity to mislead or deceive. 

4. Disparagement of Conipetitoi' or Product. — To make, cause or 
knoAvingly permit to be made or published in any manner, any false, 
misleading or deceptive statements concerning the financial stand- 
ing, ability to perform contracts, business methods, policies or 
products oi a competitor. 

5. False Price List. — The publishing or circulating of false or 
fictitious price lists. 

6. Split Shipvients. — Making partial deliveries under orders for 
quantities of products at the quantity price when the sale price is 
based on the shipment of the order at one time (excepting only bona 
fide back orders). 

T. Secret Rebates. — Withholding from, or inserting in, the invoice, 
facts which make the invoice a false record, wholly or in part, of 
the transaction represented on the face thereof, and/or the secret 
payment or allowance of rebates, refunds, credits, unearned dis- 
counts, whether in the form of money or otherwise, or the secret 
extension to certain purchasers of services or privileges not extended 
to all purchasers in the same class and under like terms or conditions. 

8. " Free Deals.^- — The practice of offering " Free Deals " in or 
connected with this Industry's products, except as otherwise pro- 
vided in this section. " Free Deals " shall include all forms of mar- 
keting devices, offering free merchandise of value whether of the 
same kind as that sold or of a different kind, and whether ail or 
only a part of the cost is borne by the seller. The term " Free Deals " 
shall not apply to the furnishing of a reasonable quantity of adver- 
tising accessories of small value such as window displays, posters, 
display fixtures, racks, holders, etc. 

9. Sales helov) Cost. — No member of the Industry shall sell below 
cost as determined by the cost accounting system established under 
Article VIII, except : 

(a) to meet existino- competition of a lower cost producer, or 

(b) to meet competition in violation of this code concerning which 
the membi^r of the Industry has complained to the Code Authority 
and on which violation decision is pending. 

10. C omviercial Briheiy. — 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 



328 

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. 

11. Price Guaranty. — Guaranteeing products against advance 
and/or protecting against decline in price. 

12. 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. 

13. Returned Goods, Ohsolescence. — Allowing credit to whole- 
salers, dealers and equipment manufacturers for return of unused 
products of the Industry (other than returned for breach of con- 
tract by the seller), except as follows in this section, viz : 

Credit may be allowed dealers, wholesalers and equipment manu- 
facturers (who purchased such products for combining with their 
own products for resale) provided the said products still appear in 
the current catalog of the member of this Industry from whom pur- 
chased, and also provided that such purchasers pay to said member 
full transportation, a reasonable handling charge, a reasonable recon- 
ditioning charge, give such member an order not less in net amount 
than the amount of the credit to be allowed on the products t-o be 
returned, and that permission first is received from said member 
of the Industry to return such products. This provision shall not 
prohibit the return of merchandise due to financial inability on the 
part of the purchaser to fulfill the conditions of the purchase 
contract for such merchandise. 

14. Credit AUoioance on Used Equipment. — Allowing credit for 
the return of used products of the Industry to apply against the 
purchase price of other products of the Industry. 

(This section is not intended to prohibit acceptance of returned 
products which have been slightly used, in exchange for similar prod- 
ucts more suitable to the customer's requirements, in bona fide cases 
of the seller's error or misunderstanding when accepting the order, 
or in cases of products which do not conform to specifications and 
which the seller is by law obligated to accept.) 

15. Closeouts. — If a member of the Industry deems it necessary to 
liquidate dropped lines, seconds, used equipment or inventories 
which must be converted into cash to meet emergency needs, the 
same may be sold by any member at any price and on any terms and 
conditions, but only if such member, not less than two (2) weeks 
before offering said products for sale, has filed with the Code Author- 
ity, a statement in writing, setting forth the fact of. and reasons for, 
such proposed disposal, and provided that the invoice for such prod- 
ucts so offered or sold shall be plainly marked " Special price on 
account of closeout ", " Special price on account of seconds " or 
" Special iDrice on account of used equipment ", as the case may be. 

16. Contrihutians. — Giving contributions or prizes to customers, 
or their salesmen or other employees, the over liberal entertainment 
of customers or prospective customers, the buying of space in special 
advertising issues or sections where a direct return to the purchaser 
commensurate with the cost thereof may not reasonably be expected, 
and the extension of similar gratuities. 



329 

17. Meiribership in or C ontrtbuti&ns to Organizations and Con- 
ventions. — Taking membership, involving financial expenditure, or 
contributing money or anything of substantial value to, or purchas- 
ing exhibit space at a convention of, any local, state or regional 
organization unless the said organization s openly declared policy 
is to promote or encourage the sale of the products of this Industry. 

18. Replacement of Competitors^ Stock. — Accepting from whole- 
salers or dealers the products of another member of this Industry 
for the purpose of exchange and replacing them with the products 
of the member of the Industry making such exchange. 

19. Lump Sum Bidding. — Making lump sum bids without clearly 
indicating on the bid the major standard items included therein. 

20. Obtaining Lower Prices hy Subterfuge. — Any plan or scheme 
designed to enable a purchaser to obtain lower prices by subterfuge. 

21. Substitutio^i of Higher Priced Air Tanks. — Supplying in any 
sale an air tank (or tanks) represented to be constructed under 
published standards of the American Society of Mechanical Engi- 
neers or similar provisions in force in any state or city, without add- 
ing to the selling price the extra cost thereof to the seller above the 
seller's price for air tanks that do not comply with the aforesaid 
standards of construction. 

22. Alteration of Standard Equipment. — Altering standard equip- 
ment appearing in the seller's catalog or price list, without making- 
due allowance covering the cost of extra labor, materials and inci- 
dental costs in the selling price of such unit article in the seller's 
price list, and published and/or filed, or required by this Code to be 
filed, with the Code Authority; except that deduction shall be made 
for the value of any part or parts omitted from the altered unit in 
the amount of the production cost thereof to the seller. 

Any device or means resorted to for the purpose of selling such 
altered unit at less than the price charged others for such unit, in 
standard form, (plus the charge for alteration less the value of the 
omatted part or parts, as above defined) shall be deemed a price 
discrimination prohibited by this Code as an unfair method of 
competition. 

23. Lending or Donating Products of the Industry. — Lending or 
donating spray guns or accessories thereto to manufacturers or dis- 
tributors of spraying materials, or to their employees or agents, for 
use in exploiting their products. 

24. Threats of Litigation. — The publishing or circularizing of 
threats of suits, 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 
customers. 

25. Espionage of Competitors. — Securing confidential information 
concerning the business of a competitor by a false or misleading 
statement or representation, b}'^ a false impersonation of one in au- 
thority, by bribery, or by any other unfair method. 

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



330 

27. Allocation of Costs, Etc., for Unrelated Lines of Products. — 
Where a member of this Industry produces more than one line of 
products, each line shall be considered a separate unit for purposes 
of ascertaining costs, and expenses of all kinds shall be fairly and 
properly allocated to the several lines. 

Article XI — ]\Iodificatioxs 

This Code and all the provisions tliereof are expressl}^ made sub- 
ject to the right of the President, in accordance with the provisions 
of subsection (b) of Section 10 of the Act, from time to time to cancel 
or modify any order, approval, license, rule or regulation issued 
under Title I of said Act and specifically, but without limitation, to 
tlie right of the President to cancel or modify his approval of this 
Code or any conditions imposed by him upon his approval thereof. 

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

Article XII — ISIongpolies 

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 enterjirises. 

Article XIII — 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 XIV — Effective Date 

This Code shall become effective on the 10th day after its approval 
by the President. 



Approved Code No. 397. 
Registry No. 1341-02. 



o 



Approved Code No. 398 
CODE OF FAIR COMPETITION 

FOR THE 

BARBER SHOP TRADE 

As Approved on April 19, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Code of Fair CoMPETiTroN for the Barber Shop Thade 

An ai)plication 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 Barber Shop Trade, and hearings hay- 
ing 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 authoritj^ vested in me by Title I of 
the National Industrial Recovery Act, approved June 16, 1U33, 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 is hereby approved, subject to the following 
conditions : 

That this Code, other than as shall be necessary to facilitate the 
accomplishment of the following requirements, shall not become 
effective as to any given trade area or subdivisions thereof in the 
United States unless and until the following requirements shall have 
been fulfilled : 

(1) The Code Authority shall have designated the boundaries of 
such trade area and subdivisions thereof as provided in Article VI, 
Section 8, subsection (i) of the Code and the Administrator shall 
have approved same ; 

(2) The Code Authority shall have established a local Adminis- 
trative Board for such trade area as provided in Article VI, Section 
8, subsection (j) of the Code; 

53921° 482-112 34 1 (331) 



332 

(3) The Local Administrative Board for such trade area shall 
have determined the uniform service names for barber services, defi- 
nitions of said services, and the fair and reasonable minimum prices 
for the several services for such trade area or subdivisions thereof; 
and shall have secured the approval of the Administrator thereto, as 
provided in Article VI, Section 8, subsection (1) of the Code. 

(4) The Code Authority shall have entered into a price stabiliza- 
tion agreement in such trade area or subdivisions thereof with the 
President of the United States, the Local Administrative Board, and 
not less than seventy per cent (70%) of the mem.bers of the Trade 
in such trade area or subdivisions thereof. 

(5) The Administrator shall have approved such agreement or an 
agreement entered into b}^ a less percentage of members of the Trade 
than hereinabove provided in the discretion of the Administrator. 
The Code shall become fully effective in such trade area or sub- 
divisions thereof upon such approval. 

Prior to the full effectiveness of the Code in any <^ven trade area 
or subdivisions thereof any member of the Trade within such trade 
area or subdivisions thereof who has signed such agreement, and who 
certifies to the local Administrative Board, that he is complying 
with the requirements of said Code, including proposed prices for 
said trade area or subdivisions thereof, shall be entitled while so 
complying to make full use of the appropriate Xational Recovery 
Administration Code Insignia. 

FRANKLIN D. ROOSEVELT. 
Approval recommended : 
Hugh S. Johnson, 

Adviinistrator. 

The White House, 

A2:)nl 19, 139J^. 



LETTEE OF TRANSMITTAL 

The President, 

The White House. 

Sir: I have the honor to submit and recommend for your ap- 
proval the Code of Fair Competition for the Barber Shop Trade. 
This Code was sponsored by the Barbers Industrial Recovery As- 
sociation and the Associated Master Barbers of America, claiming to 
be representative of the Trade as defined by the Code. 

The Public Hearing was conducted in Washington on January 
8. 1934, and every person who filed a request for appearance in 
accordance with statutory and regulatory requirements was fully 
heard. 

CONDinONS IN THE INDUSTRY 

Owing to the tremendous increase in the number of barber shops, 
and to destructive competition, this trade has suffered severely dur- 
ing the past two years. In almost every section price wars have 
continued, resulting in the establishment of prices that are far below 
cost. Practically no minimum wages have been paid, most barbers 
being compensated on a straight commission basis. Pseudo barber 
schools that render barber shop services to the public have sprung 
up for the sole purpose of rendering barber shop services at destruc- 
tively low prices. As a result of these conditions the barber shop 
trade is badly disorganized and demoralized and neither barbers 
nor shop owners are making a living wage. Few members of the 
trade have any credit, and in many cases there are substantial 
amounts owed for shop rent and labor. The normal price for a 
haircut which had been established at fifty cents for a period of 
twenty-five years has in many cases been reduced to a price ranging 
from ten cents to thirty-five cents. It is a fact that many barber 
shops have been operating at a loss during the past eighteen months. 

The general improvement characterizing other industries has not 
been felt by the barber shop trade. This can be explained entirely 
by the trade's inability to establish reasonable prices. Wliile there 
has been practically no unemployment in this field, the inability to 
obtain a fair price for services rendered has compelled the barbers 
and shop owners to live on starvation wages or appeal to various 
charitable organizations for relief. No immediate relief in the bar- 
ber shop trade can be expected until prices for the several barber 
shop services have been established at a level that will permit living 
wages for barbers and legitimate profits for shop owners. 

Four problems received paramount consideration in the drafting 
of this Code. The first was the necessity for stabilizing the price 
structure to prevent the recurrence of vicious price cutting and to 
enable the members of the trade to meet the minimum wages provided 
for and the maximum hours established in this Code. The second 

(333) 



^vas the development of a formula for the readjustment of the cx- 
tremel}^ lov.' wages obtaining under the existing arrangements. The 
third was to provide reasonaiile maximum hours commensurate with 
those prevailing in other service trades. The fourth was to preclude 
through provisions of unfair trade practices, the continuation of the 
destructive competition that has heretofore existed in this trade. 

LABOR PRG^-ISIONS 

Maximum hours of forty-eight (48) per week have been estab- 
lished for barbers. Owners of one (1) chair barber shops may ren- 
der barber shoj) services not to exceed fifty-two (52) hours. Shop 
owners and executives are limited to forty-eight (48) hours for the 
rendering of barber services, but are not otherwise limited. These 
hours represent a substantial reduction in those prevailing prior to 
the inauguration of the Eecovery Program. The opening and clos- 
ing hours for barber shops shall be determined b}' the local Adminis- 
trative Board subject to the approval of the Administrator. 

Barbers will receive as heretofore commissions based on their gross 
weekly receipts for services rendered, but in no event shall they 
receive less than a minimum wage ranging from seventeen dollars 
($17.00) per week in the larger Northern cities to twelve dollars 
($12.00) per week in the smaller towns and villages of the South. 
It is believed that the effects of a general upturn in business com- 
bined with the application of the provisions of this Code will enable 
a barber to earn a weekly wage commensurate vrith the services 
rendered. 

MINIMUM PRICE FROVISIOXS 

To correct the inequitable conditions that investigation reveals as 
existing in the Barber Shop Trade, I unite in the seemingly unani- 
mous demands of the Trade in recommending the adoption of a 
method of price stabilization similar to those that other service 
trades have adopted. This Code provides safeguards for the con- 
sumer and for the. Trade in that no prices may be established prior 
to public hearings to be held in the localities affected, and all such 
prices are subject to the approval of the Administrator, It is not 
felt that this provision will vrork any undue hardship on the consumer 
owing to the fact that the competitive nature of the Trade makes 
unwarranted price increases undesirable and the power of veto vested 
in the Administrator precludes such increases. It appears that the 
adoption of this provision affords the only method of insuring fair 
competition. 

TRADE PRACTICES 

Certain practices now current in this Trade have the effect of creat- 
ing unfair and destructive competition. The Trade has sought to 
eradicate such j^ractices by making them violations of this Code. 

ADMINISTRATION 

The provisions for the administration of this Code are capable of 
providing the National Recovery Administration and the Barber 
Shop Trade with sufficient data 'to make recommendations for the 



335 

limitation of certain provisions of the Code as herewith presented 
and/or the addition of further provisions to this Code which would 
be beneficial to the Trade as a whole. 

GENERAL 

Recognizing the great necessity for flexibility in the operation of 
service codes, it has been provided in the Executive Order that this 
Code shall not become effective as to any given trade area or sub- 
divisions thereof until the following requirements shall have been 
fulfilled for each such trade area or subdivisions thereof : 

(1) The Code Authority, subject to the approval of the Adminis- 
trator, shall have designated the boundaries of such trade area and 
subdivisions thereof ; 

(2) The Code Authority shall have established a local adminis- 
trative board for such trade area ; 

(3) The local administrative board, subject to the approval of the 
Administrator, shall have caused to be determined fair and reasonable 
minimum prices for the several barber shop services rendered, for 
such trade area or subdivisions thereof. 

(4) The local administrative board shall have obtained signa- 
tures to the price stabilization agreement, in such trade area or sub- 
divisions thereof from not less than seventy (70) per cent of the 
members of the Trade in such trade area or subdivisions thereof. 

(5) The Administrator, in his discretion shall have approved such 
agreement or agreements containing a less percentage of signatures 
than hereinabove provided. 

Prior to the full effectiveness of the Code, any member of the 
Trade who has signed such agreement and who certifies that he is 
complying with the requirements of the Code shall be entitled to 
full use of appropriate National Recovery Administration Code 
Insignia. 

FINDINGS 

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

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanctions and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be 
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 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 trade associations trulj^ representative of the aforesaid 
Trade ; and that said associations impose no inequitable restrictions 
on admission to membership therein. 

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

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

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

Accordingly, I hereby recommend the approval of the Code of 
Fair Competition for the Barber Shoj) Trade. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
Apeil 19, 1934. 



CODE OF FAIK COMPETITION FOE THE BARBEK SHOP 

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 Barber Shop Trade and shall be the 
standard of fair competition for such Trade, 

Article II — Definitions 

1. The term " Barber Shop Trade " as used herein, includes shav- 
ing and trimming the beard, cutting and dressing the hair, and 
rendering kindred personal services, principally to males, for com- 
pensation. 

2. The term " barber shop " as used herein shall mean any place, 
without limitation, having as its primary purpose the rendering of 
the several services constituting the Barber Shop Trade, for com- 
pensation. 

3. The term " member of the Trade " as used herein shall mean 
any person engaged in the Barber Shop Trade, as an employer, co- 
partner, or on his own behalf. 

4. The term " barber school " as used herein shall mean any place, 
without limitation, rendering the several services constituting the 
Barber Shop Trade for compensation but having for its primary 
purpose the teaching of the theory and practice of such services for 
a tuition fee. 

5. The term " student " as used herein shall mean any person a^ 
tending a barber school for the purpose of learning the theory and 
practice of the Barber Shop Trade, and who receives no compen- 
sation for so doing. 

6. The term " employer " as used herein shall mean any person by 
whom an employee is employed. 

7. The term " employee " as used herein shall mean any person 
employed by any member of the Trade, however compensated. 

(a) The term "barber" as used herein shall mean any person 
performing for compensation the services set forth in Section 1 
except manicuring. 

(b) The term "manicurist" as used herein shall mean any per- 
son in a barber shop engaged in the service of caring for or treating 
the fingernails. 

(c) The terms " bootblack " and " brushboy " as used herein shall 
mean any persons engaged in cleaning and polishing shoes, brush- 
ing clothes, general cleaning and rendering incidental services in a 
barber shop. 

(d) The term " apprentice " as used herein shall mean any person 
who has worked less than one year as a barber not including time 

53021° 4S2-112 34 — —2 (3.37) 



338 

spent in a barber school ; provided, however, that where a State law 
specifies a longer period of apprenticeship, the period specified in 
such State law shall govern. 

(e) The term " executive " as used herein shall mean any emploj^ee 
solely responsible for the management of a business or a recognized 
subdivision thereof. 

8. The term " South " as used herein shall include Virginia, North 
Carolina, South Carolina, Georgia, Florida, Kentucky, Alabama, 
Mississippi, Arkansas, Louisiana, and Tennessee. 

9. Population shall be determined by reference to the latest 
Federal Census (U. S. Department of Commerce, Bureau of 
Census). 

10. The term " local administrative board " as used herein means 
the local governing body of the Barber Shop Trade selected as 
hereinafter provided in Article VI, Section 8, Sub-section (j). 

11. 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. 

12. The term " suburban area " as used herein shall mean that 
competitive area adjacent to a city or town so designated by the 
local administrative board subject to the approval of the 
Administrator. 

13. 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 and Hours of Shop Operation 

1. No employee shall be permitted to work in excess of forty-eight 
(48) hours in any one week except as hereinafter provided. 

(a) In any barber shop operating more than one chair, no person, 
whether a member of the Trade, employer, or employee, shall be 
permitted to perform the several services constituting the Barber 
Shop Trade m excess of forty-eight (48) hours in any one week. 

(b) In any barber shop operating only one chair and employing 
no barbers, no person shall be permitted to perform the several 
services constituting the Barber Shop Trade in excess of fifty-two 
(52) hours in any one week. 

2. The maximum hours of labor prescribed in Section 1 of this 
Article shall not apply to executives i^ceiving a salary of thirty- 
five dollars ($35.00) or more x^er week; provided, however, that such 
executives shall not perform the services of a barber in excess of 
forty-eight (48) hours in any one week. 

3. No employee shall be permitted to w^ork more than six (6) 
days in any seven day period. 

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



339 

5. No employer shall knowingly engage any employee for any timfe 
which when totaled with that already performed with another 
employer, or employers, exceeds the maximum prescribed herein. 

6. Barbers and manicurists may be required to finish serving all 
patrons in the shop at the time of closing, and the time of such 
services after the closing hours of the shop shall not be computed 
in determining the total number of hours worked under the provi- 
sions of this Code. 

7. Opening and closing hours shall be established for barber shops 
for each trade area or subdivisions thereof by the local adminis- 
trative board in such trade area subject to the approval of the 
Administrator. Each local administrative board shall fix the date 
upon which such opening and closing hours shall go into effect, and 
shall take such steps as are reasonably calculated to notify all 
members of the Trade within such area. 

Article IV — Wages 

1. (a) Barl>ers. — A barber shall receive a commission based on 
his gross weekly receipts for services rendered, but in no event shall 
he be paid less than at the rate of the minimum wages prescribed 
hereinafter in Table I. 

(b) Manicurists. — No manicurist shall be paid less than at the rate 
of fifty (50) per cent of her gross weekly receipts for services ren- 
dered, but in no event shall she be paid less than at the rate of the 
minimum wages prescribed hereinafter in Table II. 

(c) Bootblacks and Brushhoys. — No bootblack or brushboy shall 
be paid less than at the rate of fifty (50) per cent of his gross weekly 
receipts for services rendered, but in no event shall he be paid less 
than at the rate of the minimum wages prescribed hereinafter in 
Table II. 

(cl) Other Employees. — No employees, except those specifically 
mentioned in subsections (b) and (c) of this Section shall be paid 
less than at the rate of wages prescribed hereinafter in Table I. 



Table I 
(per week) 



Table II 
(per week) 



Zone I: Cities over 350,000 population and their suburban areas -.. 

Zone II: Cities of from 100,000 to 350,000 population, not included in zone I, and 

their suburban areas 

Zone III: Cities of from 25,000 to 100,000 population, not included in zones I and 

II, and their suburban areas 

Zone IV: Cities of from 5,000 to 25,000 population, not included in zones I, II, 

and III, and their suburban areas 

Zone V; Places under 5,000 population, not included in zones I, II, III, and IV. 



$17. 00 

16.00 

15.00 

14.00 
13.00 



$8.50 

8.00 

7.50 

7.00 
6.50 



2. In the South the minimum rates of pay prescribed in Table I 
and Table II of this Article may be reduced by not more than one 
dollar ($1.00) per week; provided that where a trade area lies partly 
in the South, as defined in Article II, Section 8, and partly outside, 
the Administrator shall have power to prescribe that the wages 
throughout such area shall be uniform. 

3. The minimum wage rate for apprentices shall be one dollar 
($1.00) less than the minimum rates of wages prescribed in Table I 



340 

as modified by Section 2 of this Article. No member of the Trade 
shall employ more than one apprentice for every ten (10) barbers, 
provided that any member may have one apprentice. 

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

5. 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, commission or other basis. 

6. No member of the Trade, by reason of the adoption of this Code, 
shall reduce any employee's total weekly wage or that w^age actually 
received on June 16, 1933, whichever shall be the greater, whether 
based on an liourly rate or a weekly wage, notwithstanding the fact 
that the hours of work of such employee may be reduced. 

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed in 
the Trade. 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 hj the authority in such State empowered to issue 
employment or age certificates or permits showing that the employee 
is of the required age. 

2. Emploj^ees shall have the right to organize and bargain 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. Employers shall comply with the maximum hours of labor, 
minimum rates of pay, and other conditions of employment approved 
or prescribed by the President. 

5. No employer shall reclassify employees or duties of occupations 
performed or engage in any other subterfuge for the purpose of de- 
feating the purposes or provisions of the Act or of this Code. 

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 of safet}' and health shall be submitted 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. 

7. 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 Avork, or as to safety, health, sani- 
tary or general working conditions, or insurance, fire protection, term 
of apprenticeship, or school requirements, than are imposed by this 
Code. 

8. All em]iloyers shall post and keep posted complete copies of this 
Code in conspicuous places accessible to employees. 



341 

Article VI — Organization, Powers and Duties of the Code 

Authority 

organization and constitution 

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

(a) Nine (9) representatives of the Barber Sliop Trade or such 
other number as may be approved from time to time by the Admin- 
istrator, to be selected as hereinafter provided. 

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

2. The members of the Code Authority shall be appointed by the 
Administrator. The term of such members shall be one year, or 
until the appointment of their successors. 

3. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
(1) impose no inequitable restrictions on membership, and (2) sub- 
mit to the Administrator true copies of its articles of association, 
by-laws, regulations, and any amendments when made thereto, 
together with such other information as to membership, organization, 
and 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 Barber Shop Trade 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 Code Authority is not truly representati%'e or 
does not in other respects comply with the provisions of the Act, 
may remove any member or members and appoint a new member or 
members. 

5. Members of the Trade shall be entitled to participate in and 
share the benefits of the activities of the Code Authority and the 
local administrative boa.rd having jurisdiction over their trade area 
and to display the National Recovery Administration Code Insignia 
for the Barber Shop Trade by assenting to and complying with the 
requirements of this Code, including signing the price stabilization 
agreement, and sustaining their reasonable share of the expenses of 
its administration. Such reasonable share of the expenses of admin- 
istration 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 ecjuitable. 

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

(b) The Code Authority and each Local Administrative Board, 
established pursuant to the provisions of Section 8, Subsection (j) 
of this Article may, upon submission to and approval by the Admin- 



342 

istrator of its proposed certificate of incorporation and by-laws, in- 
corporate under the laws of any state of the United States or oi the 
District of Cohimbia. 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 Barber Shop Trade and 
the Local Administrative Boards of the Barber Shop Trade as pro- 
vided in this Code and the existence of the corporations shall be for 
the duration of this Code. 

7. 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 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 me provisions of this Code and 
to provide, subject to rules and regulations established by the Ad* 
ministrator, for the compliance of the Barber Shoj) Trade with thfe- 
provisions of the Act; provided, however, that this shall not be 
construed to deprive dul}^ 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, 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 mav deem necessary to effectuate 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 the 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 f)erson of existing obligations 
to furnish reports to governmental agencies. No individual reports 
shall be disclosed to any other member of the Trade or any other 
party except to such governmental agencies as may be directed by 
the Administrator. 

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



(e) To appoint a trade practice coramittee which shall meet with 
the trade practice committees appointed under such other codes as 
may be related to the T3arber Sho|) Trade for the purpose of formu- 
lating fair trade practices to govern the relationships between eni- 
plo5^ers under this Code and under such other Codes 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 Codo 
an equitable and proportionate paymejit of the reasonable expenses 
of maintaining the Code Authority and its activities. 

(g) To cooperate with the Administrator in restricting the use 
of any National Recovery Administration Code Insignia solely to 
those members of the Trade who have assented to, and are comply- 
ing with, this Code, and who have executed an agreement pursuant 
to the terms of Subsection (1), this Section. 

(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 Avith each other 
or wdth other trades, measures for industrial planning, and stabiliza- 
tion of emploj^ment ; and including modifications of this Code which 
shall become effective as part thereof upon approval by the Adminis- 
trator after such notice and hearing as he may specify. 

(i) To define trade areas, their subdivisions, and suburban areas 
and designate the boundaries thereof, subject to the approval of 
the Administrator.^ 

(j) To supervise the setting up of local administrative boards for 
trade areas, subject to the approval of the Administrator, for the 
purpose of assisting in the administration of this Code Avithin such 
trade areas; to provide that each such board shall be truly repre- 
sentative of the Barber Shop Trade, and such other group or groups 
as the Code Authority shall direct, within the trade area under its 
jurisdiction; and to delegate to such boards such of the powers and 
duties reposed in the Code Authority as may be necessary for the 
effective administration and enforcement of this Code in their 
resj^ective trade areas.- 

(k) To revoke any delegation of any of its powers and duties 
whenever it shall determine that they are not fully or properly exer- 
cised; to coordinate and harmonize the activities of the various local 
administrative boards; to delegate to any local administrative board 
the powers to establish uniform service names for barber services, 
and to define said services and prescribe their use within its trade 
area. 

(1) To enter into a i^rice stabilization agreement with the Presi- 
dent of the United States, the local administrative board, and the 
members of the Trade, in each trade area or subdivisions thereof." 

(I) Price Stabilization Agreement. The local administrative 
board, subject to the approval of the Administrator shall determine, 
after due notice to members of the Trade and to representatives oi 
consumers and other afi:'ected by this provision, and after a publio 
hearing in each trade area or subdivisions thereof at which repre- 

' See paragraph 3 (1) of order approving t!iis Code. 
'See paragraph 3 (2) of order approving this Code. 
* See paragraph 3 (3) of order approving this Code. 



344 

sentatives of consumers and other groups affected thereby shall be 
given opportunity to be heard, fair and reasonable minimum prices 
for the several services constituting the Barber Shop Trade; such 
prices to be sufficient to carry out the purposes of the Act, to enable 
the Trade to maintain the minimum wages herein established and 
other wages properly based thereon, to furnish stable employment 
necessary to maintain the Trade, and to carry out such other con- 
siderations reasonably pertinent thereto. Such prices when deter- 
mined and when agreed to as a part of this Code by not less than 
seventy (70) per cent of the members of the Trade in such trade 
area or subdivisions thereof, as evidenced by their signatures, shall 
become the minimum prices to be charged for such services by all 
members of the Trade in such trade areas or subdivisions thereof, 
except as hereinafter provided.* 

(II) Exceptions. When the operation of the provisions contained 
in Paragraph (I) of this Subsection, imposes an unusual or undue 
hardship upon any inember of the Trade and when relief will not 
result in unfair price competition with a member of the Trade who 
has signed the price stabilization agreement, such member may apply 
for relief to the local administrative board and, after due notice and 
hearing may be permitted to sign an agreement to operate on a lower 
price schedule than that adopted as provided in said Paragraph (I), 
such lower schedule to be determined by the local administrative 
board, subject to the approval of the Administrator; provided that 
such lower price schedule shall not be less than fifty (50) per cent 
nor in excess of sixty (60) per cent of the price schedule adopted as 
provided in Paragraph (I), this Subsection, for such trade area 
or subdivisions thereof, except that the limits so established may be 
increased or decreased oy an amount not to exceed two and one-half 
(21/2 ) cents to arrive at a multiple of five (5). Any member of the 
Trade who is refused such exception may file a request for review of 
such refusal with the Administrator. 

(III) Barber Schools. Barber Schools as defined in Article II, 
Section 4, rendering to the public the several services constituting 
the Barber Shop Trade, by entering into a price stabilization agTee- 
ment as provided for in this Subsection, may charge a price schedule 
for the several barber shop services to be determined by the local 
administrative board, subject to the approval of the Administrator; 
provided that such price schedule shall not be less than fifty (50) 
per cent nor in excess of sixty (60) per cent of the price schedule 
adopted as provided for in Paragraph (I) , this Subsection, for such 
trade area or subdivisions thereof, except that the limits so estab- 
lished may be increased or decreased by an amount not to exceed 
two and one-half (^i^) cents to arrive at a multiple of five (5). 

(IV) In the event that thirty-five (35) per cent of the members 
of the Trade in any trade area or subdivisions thereof shall object 
to the prices so established for such trade area or subdivisions 
thereof, a further hearing shall be held and findings shall be made 
by the local administrative board, sustaining such prices as fair 
and reasonable, or establishing revised prices which are acceptable 
to not less than seventy (70) per cent of the members of the Trade 

*See paragraph 3 (4) of order approving this Code. 



345 

in such trade area or subdivisions thereof, as evidenced by their 
signatures. The sustaining of such prices or revision thereof shall 
be subject to the approval of the Administrator. 

Any minimum price thus established from time to time may be 
increased or decreased by the local administrative board, after due 
notice and hearing, subject to the approval of the Administrator 
according to changing conditions; provided that seventy (70) per 
cent of the members of the Trade in such trade area or subdivisions 
thereof agree to such revised prices as evidenced by their signatures." 

(m) Immediately after any modification of prices established as 
prescribed in Subsection (1) of this section, has been approved 
ijy the Administrator, the local administrative board shall take such 
steps as are reasonably calculated to notify all micmbers of the Trade 
within such trade area or subdivisions thereof. Such prices, in- 
creases and/or reductions shall become fully effective upon approval 
of th.Q Administrator. 

(n) To appoint a committee from the Barber Shop Trade within 
one month after the effective date of the Code to (1) work in col- 
laboration with some Federal Government agency or agencies to 
study and recommend to the Administrator standard classifications 
and standards of quality for services of the Trade in order to assist 
in making effective the reports from the Trade and to eliminate un- 
fair competition; and (2) to investigate the operation of barber 
schools to the extent that such schools compete with members of the 
Trade and/or each other and to draw up standards to protect the 
members of the Trade and schools. Upon approval by the Adminis- 
trator such standards shall become effective as part of this Code. 

Arttci.e VII — UxFAiR Trade Pkactices 

The folloAving shall constitute unfair trade practices : 

1. No member of the Trade 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, name, trademark, grade, quality, Cjuantity, 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. (a) Any use of violence to person or property, intimidation, 
or unlawful coercion by a member of the Trade against a member 
of the Trade. 

(b) Any threat 1)]/ a member of the Trade to use such violence, 
intimidation, or unlawful coercion. 

(c) Any conspiracy among members of the Trade, or among 
members of the Trade and others to use or threaten to use such 
violence, intimidation, or unlawful coercion. 

(d) Any combining or cooperating by a member of the Trade 
with anyone who is using or threatening to use such violence, 
intimidation, or coercion. 

3. The secret payment or allowance of rebates, refunds, commis- 
sions, credits, or unearned discounts, whether in the form of money 



''See paragraph 3 (3) of order approving this Code. 



346 

or otherwise, or (he secret extension to certain jjurchasers of special 
services or privileges not extended to all purchasers on like terms 
and conditions. 

4. The dilution, substitution, or misrepresentation of materials 
used in connection with the dispensing of service. 

5. The making of false statements or the circulation of harmful 
rumors respecting a competitor's services or treatments, his prices, 
or his business, financial, or personal standing. 

6. The aiding or abetting of another in unfair trade practices. 

7. The renting or leasing of chairs, booths or tables to barbers or 
manicurists for the purpose of evading the provisions of this Code. 

8. The failure to publish in a conspicuous place in each barber 
shop the price for every service and treatment usually and custo- 
marily performed or rendered in such barber shop. 

9. The rendering of any combination of services or treatments at 
less than the total of the prices of each service rendered. 

10. The rendering of any barber service in any trade area or sub- 
divisions thereof at less than the minimum price for such service as 
established for such trade area or subdivisions thereof in accordance 
with Article VI, Section 8, Subsection (1). 

11. Tlie displaying of the National Recovery Administration Code 
Insignia for the Barber Shop Trade in a barber school rendering the 
several services constituting the Barber Shop Trade for compensa- 
tion, unless such school abides by all the provisions of the Code per- 
taining to the rendering of the several services constituting the Barber 
Shop Trade, except Article IV. 

12. The conducting of a barber school except where placards in 
clear and legible type within the shop, and street signs in letters of 
not less than eight (8^ inches, clearly indicate to the prospective 
customer that such estaJblishment is a barber school, 

13. For any person in a barber school other than a student to render 
any or all of the several services constituting the Barber Shop Trade 
if a charge is made for such services, except as incidental to the 
instruction of a student. 

14. No establishment or place shall be designated as a barber school 
for the sole purpose of rendering the several services constituting 
the Barber Shop Trade at the price schedule for barber schools. 

Article VIII — General 

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 modif}^ any order, approval, license, rule, or regulation 
issued under said Act and specifically, but without limitation, 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 on approval of the Adrninistrator. 



347 

8. 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. 

4. >7o member of the Trade shall use any subterfuge to frustrate 
the spirit and intent of this Code, which is, am.ong other things, 
to increase employment by universal covenant, to remove obstruc- 
tions to commerce, to shorten hours of work, to raise wages to a 
living basis, and to remove destructive price cutting. 

5. Where the operation of the provisions of this Code imposes an 
unusual or undue hardship upon any member of the Barber Shop 
Trade or group of such members, such member or group of members 
may make application for relief to the Administrator or to his 
duly authorized agent, and the Administrator or his agent may, 
after such public notice and hearings as he may deem necessary, 
grant such exception to or modification of the provisions of this 
Code as may be required to effectuate the purposes of the National 
Industrial Recovery x\ct. 

Akticle IX — Effecti\-e Date 



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

o 



Approved Code No. SOS, 
Registry No. 170S-10. 



Approved Code No. 399 
CODE OF FAIR COMPETITION 

FOR THE 

HOUSEHOLD GOODS STORAGE AND MOVING 

TRADE 

As Approved on April 19, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Code of Fair Competition for the Household Goods Storage and 

Moving Trade 

An application having been duly made, pursuant to and in full 
conii^liance 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 Household Goods Storage & ^Moving 
Trade, and hearings having been held thereon, and the Administra- 
tor having rendered his report containing an anal3'sis of the said 
Code of P^air 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 require- 
ments of clauses (1) and (2) of subsection (a) of Section 3 of said 
Act have been met : 

NOAV, THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by Title 
I of the National Industrial Recovery Act, approved June 10, 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; provided, 
however, that the provisions of Article VII, Section 1, insofar as 
they prescribe a waiting period between the filing with the Adminis- 
trative Boards and the effective date of revised price lists or revised 
terms and conditions of sale be and they are hereby stayed pending 
further order by the Administrator either within a period of sixty 
(GO) days from the effective date of this Code or after the comple- 
tion of a study of open price associations now being conducted by 
the National Recovery Administration; and provided further it is 

53919° 482-113^—34 1 (349) 



350 

nnderstood that Article II, Section 1, taken in conjunction with 
Article II, Section 1 of the Code of Fair Competition for the Truck- 
ing Industry, is interpreted to mean that tlie question to be considered 
at the public hearing to be held prior to June 15, 1934, is whether or 
not vehicles engaged in the transportation of used household goods 
or used office furniture and equipment are to be included wholly or 
partly in the Code of Fair Competition for the Trucking Industry 
or wholly or partly under this Code; and provided further that the 
provisions of Article II, Section 1(c) shall be stayed pending the 
public hearing to be held prior to June 15, 1934. and pending my 
further order. 

FRANKLIN D. ROOSEVELT. 
Approval recommended : 
Hugh S. Johnson, 

A d7ninistrator. 
The White House, 

April 19, 193j^ 



LETTER OF TRANSMITTAL 

The Peesidext, 

The ^VMte Ho-use. 
Sir : The hearing on the Code of Fair Competition for the Hoiise- 
hokl Goods Storage and Moving Trade was held at the Mayflower 
Hotel on Januar}^ 18, 1934. The Code which is attached was pre- 
sented by duly qualified and authorized representatives of the Trade, 
conipl3'ing Avith statutory requirements, said to represent SC/o of 
the Trade by number and volume. In accordance with the cus- 
tomary procedure, everyone present who had filed a request for an 
appearance was freely heard in public and all statutory and regu- 
latory requirements were complied with. 

THE TRADE 

The Trade in 1933 had an investment of about 250 million dollars 
and did an annual business of approximately 115 million dollars. 
This represents a decrease in volume of about 50% from the 1929 
level due to depressed economic conditions existing. It is conserva- 
tively estimated that in 1933 the Trade employed about 00,000 
Avorkers as against nearly twice that number in 1929. Tlie Trade's 
payroll in 1933 amounted to about GO million dollars. 

The Aveekly hours prescribed in the Code represent a decrease of 
over 15% and in some cases as high as 25%, and it is estimated that 
the Code will increase emploA'ment about 20% . In many parts of the 
country the minimum rates of pay prescribed by the Code will residt 
in material financial benefit to a large number of employees. 

TROVISIOXS OF THE CODE 

Hours. — The Code provides a 48-hour week Avith oA^ertime for all 
hours Avorked in excess of eight hours per day, for all inside plant 
employees. Drivers and helpers on A^ehicles engaged in moving oper- 
ations are limited to an average of 48 hours per Aveek. The aA^erag- 
ing provision is a limited one necessary to the proper conduct of the 
business. In local moving OA'ertime shall be paid after eight hours 
l^er day, and in long distance moA'ing overtime shall be paid after 
48 hours per Aveek. Clerical and office emploA'ees are limited to 40 
hours '^QY week; Avatchmen are limited to 56 hours per Aveek. Xo 
employee may Avork more than six daj^s out of seA'en, except drivers 
and helpers on A'ehicles engaged in long distance moving, Avho may 
Avork not more than 12 daj^s in any 14 day period, and except em- 
ployees engaged in an executiA'e or managerial capacity receiving 
$35 or more per week in the North or $30 or more per Aveek in the 
South. 

^yar/es. — A minimum rate of $15.00 per Aveek has bsen established 
for office employees and Avatchmen. Minimum wage rates have been 

(351) 



352 

established for all other employees (except long distance drivers and 
helpers) according to regions, and in most regions these rates are 40 
cents or 45 cents. In a few regions the rate is higher, and in some of 
the southern states the rates are 30 cents or 35 cents. A minimum 
rate of 45 cents per hour in the North and 35 cents per hour in the 
South has been established for drivers and helpers on vehicles en- 
gaged in long distance moving. 

The Code provides that no emploj'ee shall have his normal full 
time weekly earnings reduced if his hours are not reduced more 
than 15%. If his hours are reduced more than 15%, then his wages 
may be reduced by only one-half the hourly rate for any hours 
in excess of the 15%. 

In dust Hal relations. — A National Industrial Relations Board has 
been established consisting of an equal number of representatives of 
employers and representatives of employees, and this Board may 
ai^point regional and local Industrial Relations Boards similarly 
constituted. 

Administration. — The Administrator shall appoint a temporary 
Code Authority, which shall then arrange for the election by mem- 
bers of the Trade of a new National Code Authority and all local 
and regional Administrative Boards. 

Trade practices. — Trade Practices have been incorporated into 
the Code which will help to stabilize the Trade, and certain unfair 
trade practices which have worked harm to the Trade have been 
jDrohibited. 

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 prooecd- 
ings in this matter; 

I find that : 

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

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



353 

(c) The Code is not designed to and AA-ill not permit monopolies 
or monoj^olistic practices. 

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

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

Accordingly. I hereby recommend the approval of the Code of 
Fair Competition for the Household Goods Storage and Moving 
Trade. 

Respectfully, 

Hugh S. Johnson, 

Adimnhtrcutor. 
April 14, 1934. 



CODE OF FAIR COMPETITION FOR THE HOUSEHOLD 
GOODS STORAGE AND MOVING TRADE 

Article I — Purpose 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the followino; provisions are established as a Code of 
Fair Competition for the Household Goods Storage and Moving 
Trade, and shall be the standard of fair competition for such Trade 
and shall be binding upon every member thereof. 

Article II — Definitions 

1. (a) The term "'Trade" as used herein includes the furnishing 
for a consideration of any or all of the services of storing or packing 
of used household goods or used office furniture and equipment and 
such other services incidental thereto as are customarily performed 
by those engaged in performing such storing or packing services, 
or moving (local or long distance) of used household goods or used 
office furniture and equipment over publicly used roadways or within 
or between buildings, provided that vehicles not engaged principally 
in the transportation of used household goods or used office furniture 
and equipment shall be exempted, except as otherwise in this Article 
provided, from all the provisions of this Code, pending a Public 
Hearing and determination by the Administrator on a date to be 
set by him prior to June 15, 1934. 

(b) The aforesaid exemption provided in this Article shall apply 
to vehicles not principally engaged in transportation of used house- 
hold goods or used office furniture and equipment, even though they 
ma}' haul used household goods or used office furniture and equip- 
ment, if the revenue derived from such transportation of used house- 
hold goods or used office furniture and equipment is less than ninety 
(90) per cent of the total revenue derived through such vehicles. 
The percentage of revenue derived through each vehicle shall be 
determined as of the last six months of the calendar year 1933, or if 
not operated during that entire period, during the first six months 
of the operation of the vehicle, or in the event that the vehicle has 
been operated less than six months, during the total period of its 
operation. 

(c) The exemption provided in this Article is granted on the 
express condition that when an exempted vehicle hauls a van load 
of used household goods or used office furniture and equipment, from 
or in any area where a member of this Trade operates vehicles sub- 
ject to all the provisions of this Code the operator of such exempted 
vehicle shall not charge a rate for the service rendered less than 
the lowest rate on file with the Code Authority or appropriate 

(354) 



355 

Administrative Board of this Trade for similar service in tlie par- 
ticular locality.^ 

(d) At the hearing provided for above, evidence shall be pre- 
sented to the Administrator and he shall thereafter make a determina- 
tion in respect to the modification or extension in whole or in part 
of such exemption provided for in this Article. Said determination 
b}^ the Administrator shall become effective as a part of this Code. 

(e) Each vehicle transporting used household goods or used office 
furniture and equipment, not exempted under the terms of this 
Article, shall be registered with the Code Authority for this Trade 
or with the Code Authority for the Trucking Industry in such form 
and manner as may be prescribed by the Administrator and such 
registration shall contain a statement of the percentage of the total 
revenue derived from the transportation of used houseliold goods or 
used office furniture and equipment during the last six months of the 
calendar year 1933, or if the vehicle was not operated during that 
entire period, during the first six months of operation, or in the 
event that the vehicle has been operated less than six months, during 
the total period of its operation. 

(f) The Code Authority shall appoint two representatives who, 
with two representatives snnilarly appointed by the Code Authority 
of any related trade or industry, shall have the power to review and 
adjust all differences of the jurisdiction of this Code, subject to the 
approval of the Administrator, and if they are unable to agree, the 
matter shall be referred to and determined by the Administrator. 

(g) The authorized representatives of the Code xluthority of the 
Trucking Industry shall have access to the registration lists of this 
Trade, provided reciprocal authority is granted to the Code Authority 
of this Trade to have access to the registration lists of that Industry.^ 

2. The term " employee ", as used herein, includes any person 
engaged in any phase of the Trade in any capacity, however com- 
pensated, except a member of the Trade. 

3. The term " employer ", as used herein includes any one in the 
Trade b}' whom any employee is compensated or employed. 

4. The term '' member of the Trade ", as used herein, includes, 
but without limitation, any individual, partnership, association, cor- 
poration or other form of enterprise engaged in the Trade, either as 
an employer or on his or its own behalf; 

5. The term " clerical and office employee ", as used herein, means 
any employee engaged in the office of a member of the Trade. 

G. The term " watchman ", as used herein, means any employee 
principally engaged in watching plants, property and/or plant 
equipment, 

7. The term " dispatcher ", as used herein, means any person 
whose i:)rincipal function is routing and checking the movement 
of vehicles from the warehouse or garage. 

8. The term " employee engaged in an executive or managerial 
capacity ", as used herein, means any employee responsible for the 
management of a business or of a recognized subdivision thereof. 

9. The term " storage '', as used herein, means the following serv- 
ices : the maintenance and operation of warehouse facilities for used 

1 Stayed — See paragraph 2 of order approving this Code, 
^ See paragraph 2 of order approving this Code. 

53919 °— 482-113 34—2 



356 

household goods or used office furniture and equipment, and such 
other facilities as are incidental thereto. 

10. The term " local moving ", as used herein, means all moving 
within a radius of sixty (60) miles from the recognized center of 
any town or city until such time as tlie Administrator on recom- 
mendation of the National Industrial Relations Board shall deter- 
mine otherwise. 

11. The term " long distance moving ", as used herein, means all 
moving beyond a radius of sixty (60) miles from the recognized 
center of any town or city until such time as the Administrator on 
recommendation of the National Industrial Relations Board shall 
determine otherwise. 

12. The term " local moving division ", as used herein, means 
the members of the Trade engaged in local moving. 

13. The term " long distance division ", as used herein, means the 
members of the Trade engaged in long distance moving. 

14. The term " Storage division ", as used herein, means the mem- 
bers of the Trade engaged in storage. 

15. The term " division ", as used herein, means the members of 
the Trade engaged in the classes enumerated in Section 12, 13 and 
14 of this Article. 

16. The terms " President ", "Act ", and "Administrator ", as used 
herein, means respectively the President of the United States, Title 
I of the National Industrial Recover}^ Act, and the Administrator 
for Industrial Recovery. 

17. Population for the purposes of this Code shall be determined 
by reference to the 1930 Federal Census. 

18. The South is hereby defined to include Virginia, North Caro- 
lina, South Carolina, Georgia, Florida, Tennessee, Alabama, IMis- 
sissippi, Arkansas, Louisiana, Oklahoma, Texas, Kentucky and New 
Mexico. 

19. The North is hereb}'^ defined to mean the remaining portion of 
the United States not included in the South. 

20. The term '' National Industrial Relations Board ", as used 
herein, means the National Industrial Relations Board for this Trade, 
as established in Section 13 of Article V of this Code. 

21. For the purpose of administering tliis Code of Fair Competi- 
tion for those engaged in the Trade as described in Section 1 of 
this Article, the United States shall be divided as follows : 

Region No. 1 — Maine, New Hampshire, Vermont, Massachusetts, 
Rhode Island and Connecticut. 

Region No. 2 — New York City (except Staten Island), West- 
chester County and Long Island. 

Region No. 3 — New York State (except Region No. 2), New Jersey, 
Pennsylvania and Delaware. 

Region No. 4 — Maryland, District of Columbia and West Virginia. 

Region No. 5 — North Carolina, Virginia, Kentucky and Tennessee. 

Region No. 6 — Zone A: Alabama, Mississippi, the City of New 
Orleans (Louisiana), South Carolina and Georgia; Zone B; Florida. 

Region No. 7 — Ohio, Indiana, Michigan, Wisconsin (except City 
of Superior, Wisconsin) and Illinois (except the Metropolitan Dis- 
trict of Chicago). 



357 

Region No. 8 — The Metropolitan District of Chicago, bounded 
as follows: On the east bj^ Lake Michigan; On the south by 147 
Street; on the west bounded by a line drawn from Wheaton to 
Downers Grove including the suburbs of Addison, Bellwoocl, Ber- 
wyn. Blue Island, Downers Grove, Elmhurst, Glen Ellyn, Hinsdale, 
LaGrange, Lombard, Ma3''wood, Melrose Park, Oak Lawn, Oak Park, 
River Forest, Riverside, Argo, Summit, Western Springs, Wheaton, 
Willow Springs, Westmont, Villa Park, Brookfielcl, Cicero; North- 
ern boundary to and including Waukegan. 

Region No. 9 — Minnesota, North Dakota, South Dakota, and City 
of Superior, Wisconsin. 

Region No. 10 — Iowa, Missouri, Kansas and Nebraska. 

Region No. 11 — Oklahoma, Texas, New Mexico^ Arkansas, and 
Louisiana, except the City of New Orleans. 

Region No. 12 — Wyoming, Montana, Colorado and Utah. 

Region No. 13 — Idaho, Washington and Oregon. 

Region No. 14 — Zone A : Nevada, California ; Zone B : Arizona. 

Article III — Hours 

1. Excei^t as hereinbelow expressly provided otherwise : 

(a) No employee engaged in clerical or office work, except one 
dispatcher for each member of the Trade and one additional dis- 
patcher for each additional warehouse or garage, from which dis- 
patching is actually done, shall be permitted to work in excess of 
forty (40) hours in any one (1) week nor more than six (G) days 
in any seven (T) day period. 

(b) No Other emploj^ee, except an employee engaged as a driver 
or helper on a vehicle engaged in local or long-distance moving, shall 
be permitted to work in excess of forty-eight (48) hours in any 
one week, nor more than six (6) days in any seven (7) clay period. 
All hours worked in excess of eight (8) hours in any one day shall 
be compensated for by the employer at the rate of time and one 
third (II/3). 

(c) No driver or helper on a vehicle engaged in local moving shall 
be permitted to work in excess of ninety-six (96) hours in any con- 
secutive two (2) week period, nor more than six (6) days in each 
seven (7) day period. All hours worked in excess of eight (8) hours 
per day by a driver or helper shall be considered overtime and shall 
be compensated for at not less than the straight time of such driver 
or helper for the first two (2) additional hours, and at not less than 
the rate of time and one third (1%) for all hours thereafter. All 
hours worked in excess of forty-eight (48) hours in any one (1) 
week shall be compensated for at the rate of time and one third 

(IVs). 

(d) No driver, or helper, on a vehicle engaged in long-distance 
moving shall be permitted to work in excess of one hunclrecl eight 
(108) hours in any consecutive two (2) week period, nor one 
hundred ninety -two (192) hours in any consecutive four (4) week 
period, nor more than twelve (12) days in any fourteen (14) day 
period. All hours in excess of forty-eight (48) in any one week 
shall be compensated for at the rate of one and one third (V/q) 
the normal rate. 



2. The maximum hours provided above shall not apply to any 
emploj^ee engaged in any executive or managerial capacitj', who re- 
ceives thirty-five dollars ($35.00) or more per week in the'^ North or 
thirty dollars ($30.00) or more per week in the South, provided, 
however, that in the event that such person is engaged in the per- 
formance of manual labor he shall not be permitted to work in 
excess of the hours prescribed for such manual labor. 

3. The maximum hours provided above shall not apply to outside 
salesmen acting solely in the capacit}'^ of solicitors or estimators, 
performing no manual labor. 

4. No watchmen shall be permitted to work more than fifty-six 
(56) hours in any one week, nor more than six (6) days in any 
seven (7) da}' j^itriod. 

5. The maximum hours herein set forth shall not apply to any 
employee on emergency repair work involving breakdowns or the 
protection of life or property, but in any such special case all hours 
Avorkecl in excess of his maximum herein set forth shall be compen- 
sated for at not less than the rate of time and one-third {ly^). 

6. Due to the peak periods necessitated by the ending of custom- 
ary' leasing periods an emploj-er may apply to the Administrator 
through the appropriate Industrial Relations Board for authoriza- 
tion to permit employees to work a designated number of additional 
hours for an}^ four (4) weeks in any twenty-six (26) week period. 
Such additional hours shall be compensated for at a rate of not less 
than time and one-third (II/3). Discrimination between members 
of the Trade shall not be permitted in the granting of such 
authorization. 

7. It shall be the duty of the Code Authority in cooperating with 
the National Industrial Relations Board to investigate, collect data, 
and report findings and recommendations to the Administrator as 
soon as possible, but not later than November 1, 1934 with respect to 
achieving and providing a normal eight (8) hour day for all em- 
ployees with equitable overtime rates of pay for time worked beyond 
such normal eight (8) hour day, and for the purpose of general!}^ 
determining the feasibility and desirability of adopting a shorter 
working day and week and improving the rates of pay, and terms 
and conditions of employment for employees in the Trade over those 
provided in the Code. 

8. All time spent bj^ an employee on or in any vehicle shall be con- 
sidered time worked, regardless of whether such employee is engaged 
in driving or in the performance of other labor, unless such employee 
is a relief employee off duty engaged on a vehicle equipped with a 
sleeping compartment. The National Industrial Relations Board 
shall, within sixty (60) days after the effective date of this Code, 
draw up definitions of " off-duty " and definitions of and regulations 
for the practice known as " dead-heading." This Board shall also 
submit recommendations within this period with regard to the 
maximum Avorking day for hmg-distance moving. Such recom- 
mendations, regulations and definitions upon approval by the Admin- 
istrator, shall become effective as a part of this Code. 

9. No employer shall knowingly engage any employee already em- 
ployed by another for any time which when totaled with the hours 
of any other employment exceeds the maximum weekly hours per- 
mitted herein. 



359 

Aeticle IV — Wages 

1. No office employee or watchman shall be paid at less than the 
rate of fifteen dollars ($15.00) per week. 

2. No other employee except long-distance drivers and helpers 
shall be paid less than the following minimum rates per hour : 

Regions 1, 3, and 7- — 45 cents. 

Eegions 4, (except that in cities of 200,000 or more and the imme- 
diate trade areas thereof the rate shall be 45 cents) 9, 10, 12, 13 and 
14 (Zone B)— 40 cents. 

Regions 5 and 11 — 35 cents. 

Region 6 — (Zone A) — 30 cents, except that the minimum rate 
shall be 35 cents in cities of 50,000 or more and the immediate Trade 
areas thereof; (Zone B) — 35 cents. 

Region 14 (Zone A) — 55 cents. 

Regions 2 and 8 — 60 cents. 

3. No driver or helper on a vehicle engaged in long-distance mov- 
ing shall be paid less than forty-five cents (45^) per hour in the 
North nor less than thirty-five cents (350) per hour in the South. 
In movements between the North and South the minimum long-dis- 
tance wage of the North shall apply whenever any part of the load 
originates in the North. A committee constituted in the same man- 
ner as the National Industrial Relations Board shall recommend to 
the Administrator within ninety (90) days of the effective date of 
this Code minimum rates of compensation for reasonable expenses 
incurred by employees engaged in long-distance moving, to be effec- 
tive as a part of this Code when approved by the Administrator. 

4. This Article establishes a minimum rate of pay regardless of 
the basis upon which an employee is compensated. 

5. No employee whose normal full-time weekly hours of employ- 
ment for the week ending June 17, 1933, are reduced (by reason of 
the adoption of this Code) by fifteen per cent (15%) or less, shall 
have his full-time weekly earnings reduced. No employee whose 
hours are reduced in excess of the said fifteen per cent (15%) shall 
have his earnings reduced by more than fifty per cent (50%) of the 
amount calculated by multiplying the reduction in hours in excess of 
fifteen per cent (15%) by his hourly rate. A record of such ad- 
justments shall be filed with the National Industrial Relations Board. 
It is not the intent to modify established practices or privileges as 
to vacation periods, leaves of absences, or temporary absences from 
work heretofore granted to the employees. 

Article V — General Labor PRO\^sIONS 

1. No person under twenty-one (21) years of age shall be engaged 
as a chauffeur or driver of a commercial vehicle in this trade. No 
person under eighteen (18) j^ears of age, except office boys and girls 
over sixteen (16) j-^ears of age, shall be employed in this Trade. In 
any State an employer shall be deemed to have complied with this 
provision if he shall have on file a certificate duly issued by the 
authority empowered to issue employment certificates showing that 
the empioj^ee 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 



360 

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 emploj^ee 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. EmplojTn-s shall comply witl\ the maximum hours of labor, 
minimum rates of pay. and other conditions of employment, approved 
or prescribed by the President. 

5. No provisions in this Code shall supersede any Federal or State 
law which imposes more stringent requirements on employers, regu- 
lating the age of employees, wages, hours of work, or health, safety 
or general working conditions than are imposed under this Code. 

G. Members of the Trade shall not reclassify employees or duties 
of occupations, or engage in any other subterfuge, so as to defeat 
the purpose or the provisions of the Act or of this Code. 

7. Every employer shall protect his emploj'ees by Woi-kmen's 
Compensation Insurance according to the amounts required by State 
law or in the cases where a State has not enacted a compensation law 
applicable to this Trade, according to the amounts set by the Long- 
shoremen and Harbor Workers Compensation Act of March 4. 1927, 
Chapter 509, Section 1, 44 Statutes at Large 1424. as amended 70th 
Congress, 1928, Cliapter 612. 45 Statutes at Large 603. 

8. No provision in this Code sliall supersede provisions as to hours, 
w^ages and conditions of emplojanent which are established for spe- 
cific projects b}^ competent governmental authority acting in accord- 
ance with laAv. 

9. Whereas the policy of the Act to increase real buying power will 
be made impossible of consummation if existing standards of em- 
IDloj'ment are lowered, bonafide agreements entered into between 
emi:)loyers and employees bargaining collectively during the period 
of effectiveness of this Code should not. so far as reasonably possible, 
loAver such existing standards of employment. This section is not to 
be construed to permit any agreement contrar}' to the provisions of 
this Code. 

10. Every employer shall provide for the safety and health of 
emjdoyees during the hours and at the places of their emploj^ment. 
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. 

11. An employer shall not make payment of wages due other than 
in laAvful currency or by negotiable check therefor payable on de- 
mand. Such wages shall be exem])t from any paj'ments other than 
those ^•oluntarily paid by the wage earners, or required by State 
law. Pay periods for wages shall be at least at the end of every 
tAvo weeks, and for salaries at least at the end of every month. The 
employer or his agent shall accept no rebates, directly or indirectl}', 
nor give anything of value nor extend favors to any person for the 
j)Ui-pose of influencing rates of wages or the working conditions 
of his emi)loyees. 

12. No member of the Trade shall contract with any person for 
the performance by such other person of services in the Trade with- 



361 

out making it a condition of the contract that such persons will, dur- 
ing the continuance of the contract, comply with the conditions 
prescribed by this Code. Nor shall any contract be made covering 
the services of this Trade which fails to provide compensation for 
manual labor at least equal to the minimum rate per hour herein 
prescribed. Nothing in this section shall be construed to forbid 
007ia fide contracts with railroads, freight forwarding, express or 
steamship companies, insofar as such contracts relate to haulage in 
ships or trains. 

13. There shall be established a National Indastrial Relations 
Board for the Trade, consisting of two (2) representatives of mem- 
bers of the Trade, and two (2) representatives of employees of mem- 
bers of the Trade. This Board shall have the power to mediate, ar- 
bitrate and conciliate alleged violations and non-observance of the 
labor provisions of this Code and disputes between employers and 
employees and to make recommendations thereon to the Adminis- 
trator; to provide, subject to the approval of the Administrator, 
rules for the selection of its own members and those of local Boards, 
and rules and regulations for procedure and conduct of these Boards; 
to establish Regional, State, and Divisional Boards similarly con- 
stituted; and to provide for the selection of the members of these 
Boards; and it shall also advise and cooperate with the Code Au- 
thority and the Administrator on all matters of industrial relations. 

The rules and regulations prescribed shall include rules for rea- 
sonable notice to interested parties and for appeal from the Regional 
State and Divisional Boards to the National Industrial Relations 
Board and to the Administrator. 

Until such time as an election of members of the National Indus- 
trial Relations Board is conducted as above provided and representa- 
tives so chosen assume membership on such Board, the employees' 
representatives shall be appointed by the Administrator from a panel 
of nominees submitted by the Labor Advisory Board of the National 
Recovery Administration. The representatives of the Trade shall 
be appointed by the Code Authority. 

Whenever the National Industrial Relations Board is unable to 
obtain a majority vote, it shall elect an impartial member to cast 
the deciding vote, and in the event of a failure so to elect such a 
member, the Administrator shall appoint him. 

In the selection and functioning of the National Industrial Rela- 
tions Board or of any Industrial Relations Board established under 
rules made by it, the employees shall enjoy the protection extended 
to them under Section 7 (a) of the Act. 

14. Standards as to minimum rates of wages and maximum hours 
of labor such as may be necessary to effectuate the policies of Title 
I of the Act may be established in the Trade for a specifically defined 
region as a result of bona fide collective bargaining between truly 
representative groups of employers and employees within the various 
divisions or localities of this Trade. Such standards shall be pre- 
sented to the President for approval. Upon approval, this standard 
shall, in respect to the performance of service in the Trade within the 
defined area, be binding upon all members of the Trade within the 
specifically defined region of the Trade with the same force and 
effect as the provisions of this Code. 



362 

15. Each member of the Trade shall comply with all rules and 
regulations of the Administrator as to posting this Code or portions 
thereof. 

Article VI 

1. Organization, and constitution of Code AiitJiority. 

A. Temporary Code Authority. — The Administrator shall appoint 
from fifteen (15) to twenty-one (21) members of the Trade who 
shall act as the Code Authority until their successors are elected and 
who shall arrange for the selection of Administrative Boards for 
each of the Regions. 

B. Regional Administrative Boards. — Each Regional Administra- 
tive Board shall be composed of six (6) members of the Trade who 
shall elect a seventh member of the Trade to preside at its meetings 
and to vote in the event of a tie. Each division of the Trade shall 
be represented by at least one member. Only members of the Trade 
who subscribe to this Code, in the form prescribed by the Code Au- 
thority, and approved by the Administrator and who consent to pay 
their proportionat^e share of the expenses of the Code Authority 
shall be entitled to vote or hold office. 

Three of the six members shall be elected as follows : Each member 
of the Trade qualified to vote shall have one vote for each two 
thousand (2.000) square feet of gross storage space located in the 
region and reg'stered with the Code Authority, and one vote for each 
vehicle customaril}'' garaged in the region and registered with the 
Code Authority, but in no event shall have more than one hundred 
(100) votes. 

The remaining three of the six members shall be elected by the 
members of the Trade qualified to vote. Each such member shall 
have one vote. 

C. Permanent Code Authority. — Upon the completion of the elec- 
tion of all the Regional Administrative Boards they shall elect a 
new Code Authority of fourteen (14) members, to serve for one (1) 
year, the method of voting to be determined by the Code Authority 
and approved by the Administrator. Each member of the Regional 
Administrative Board ma}^ cast one (1) vote for each member of 
the Code Authority to be selected but not more than two (2) mem- 
bers of the Code Authority shall be selected from one region. The 
members of the Code Authority shall elect an impartial chairman 
not a member of the Code Authority to preside at its meetings and to 
vote in the event of a tie. 

D. Loccd Administrative Boards. — The Code Authority shall, sub- 
ject to the approval of the Administrator, prescribe rules and regu- 
lations for the formation by the Regional Administrative Boards 
of Local Administrative Boards. The Regional Administrative 
Boards shall, in accordance with such rules, make an investigation 
of local conditions in the various areas within the regions, and de- 
termine the geographical distribution of local trade areas, and cause 
to be elected by the members of the Trade in the several trade areas 
so determined. Administrative Boards who shall administer the Code 
for such areas. 

Each member of the Trade may vote for each Local Administra- 
tive Board within whose jurisdiction a warehouse operated by him 
is located, or a vehicle operated by him is customarily garaged. The 



368 

number of votes each member shall be entitled to cast shall be de- 
termined in the same manner as prescribed for the election of the 
Regional Administrative Boards. Each division of the Trade shall 
be represented by at least one (1) member. 

E. Jurisdiction. — The Local Administrative Boards shall liave 
primary jurisdiction over the activities in the Trade carried on 
within their respective areas, but the rules and regulations for their 
procedure shall be reviewed by the Code Authority before becoming 
effective. The Eegional Administrative Board shall be the coordi- 
nating body for the Local Administrative Boards. 

The Code Authority shall prescribe equitable rules and regulations 
governing appeals by interested persons from the Local Adminis- 
trative Boards to their respective Regional Administrative Boards 
and from the Regional Administrative Boards to the Code Authority 
and the Administrator and shall define the powers and duties of 
such Boards. 

F. Administration Members. — In addition to the representatives 
selected as above prescribed the Administrator may appoint to the 
Code Authority not more than three (3) additional members, with- 
out vote, who shall be given notice of and be entitled to be present 
at all meetings of the Code Authority, The Administration mem- 
bers shall also be entitled to be present at all meetings of any Admin- 
istrative Board. 

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

(a) To administer the provisions of the Code on behalf of the 
Trade. 

(b) To adopt by-laws, rules and regulations for its procedure for 
the administration of the Code and for the adjustment of disputes 
between members of the Trade arising thereunder. 

(c) To obtain from members of the Trade such information and 
reports as it deems necessary for the Administration of the Code. 
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 Trade of 
any existing obligations to furnish reports to any governmental 
agency. No identified individual reports shall be disclosed to any 
person except a confidential agency designated by the Code Author- 
ity, not a member of the Trade, and except to such governmental 
agencies as may be directed by the Administrator. 

(cl) To prescribe the manner of certifying, or verifying all reports, 
or information, to be furnished by the members of the Trade. 

(e) To make recommendations to the Administrator based on con- 
ditions in the Trade as they may develop, which will tend to effectu- 
ate the provisions of this Code, and the policy of the Act, which 
recommendations, when approved by the Administrator, shall have 
the same force and effect as a provision of this Code. 

(f) To appoint such committees and employ or designate such 
agents, and delegate to them such duties and authority as may be 
necessary. 



364 

(<2) To pro-rate the reasonal)le share of the expenses of adminis- 
tration among the members of the Trade consenting to pay their 
proportionate share on such basis as the Code Authority may deem 
equitable and to empower each of the Regional and/or Local Admin- 
istrative Boards to collect such expenses by any lawful means from 
the members of the Trade which elected it. 

(h) To cause to be formulated an accounting sj'stem 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 b}' the Administrator full details 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. 

3. If the Administrator shall determine that any action of the 
Code Authority, or any Administrative Board or any agency thereof 
may be vmfair or unjust or contrary to the public interest, the Ad- 
ministrator may require that such action be suspended to afford an 
opportunity for investigation of the merits of such action and fur- 
ther consideration by such Code Authority or Administrative Board 
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. 

4. Rcjjrcsentat'tve Character. — The Administrator may on his own 
initiative, or on complaint of any member of the Trade, that the 
Code Authority or any Administrative Board is not truly repre- 
sentative of the Trade, require a public hearing, and if he shall find 
that the Code Authority or any Administrative Board is not truly 
representative, may require an approj)riate modification in the 
method of selection thereof. 

5. Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority or any 
Administrative Board shall (a) impose no inequitable restriction on 
membership, and (b) submit to the Administrator true copies of its 
articles of association, by-laws, regulations, and any amendments 
when made thereto, together with such other information as to mem- 
bership, organization, and activities as the Administrator maj'^ deem 
necessar}^ to effectuate the purposes of the Act. 

6. Members of the Code Authority or Administrative Boards not 
partners. 

(a) Nothing contained in this Code shall constitute the members 
of the Code Authority or any Administrative Board partners for 
any purpose. Nor shall any member of the Code Authority or any 
Administrative Board be liable in an}' manner to anyone for any 
act of any other member, officer, agent or employee of the Code 
Authority or any Administrative Board. Nor shall any member of 
the Code Authority or any Administrative Board 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. 

(b) The Code Authority and each Regional and Local Admin- 
istrative Board, established pursuant to the provisions of this 
Article, may, upon submission to and approval by the Administrator, 



365 

of its proposed certificate of incorporation and by-laws, incorporate 
under the la^vs of any State in the United States or of the District 
of Cohimbia. The powers, objects, and purposes of said corpora- 
tions shall in all respects be limited to the powers, objects, and pur- 
poses of the Code Authority for the Household Goods Storage and 
Moving Trade and the Regional and Local Administrative Boards 
of the Household Goods Storage and Moving Trade as provided in 
this Code, and the existence of the corporations shall be for the 
duration of this Code. 
7. Registration. 

(a) Every member of the Trade shall within thirty (30) days 
after the effective date of this Code, or within ten (10) days after 
becoming a member of the Trade, and annually thereafter, register 
his name, the number and type of vehicles operated, and gross ware- 
house space, together with such other information in such form 
under such rules and regulations, and with such agency as may be 
prescribed by the Code Authority with the approval of the Admin- 
istrator, or as may be required by him. 

(b) Each member of the Trade, on complying with the provisions 
of paragraj)}! (a) hereof, shall be issued an annual registration 
certificate and registration insignia indicating such registration. 
The cost of registering vehicles and furnishing insignia for the 
same shall be assessed against the member registered. 

(c) After forty-five (45) days after the effective date of this Code, 
it shall be a violation of this Code for any member of the Trade to 
operate any vehicle or warehouse without such registration insignia 
prominently displayed at all times upon the outside of the vehicle 
and in the office of the warehouse. 

Article VII — Trade Practices 

1. Open Prices. — Each member of the Trade shall file Avith the 
appropriate Administrative Board in each area in which he solicits 
business within forty-five (45) days after the effective date of this 
Code a complete schedule of his individual terms, rates, tariffs, 
prices, discounts, dock charges, and all other conditions relating to 
charges for services in the Trade. Each such individual schedule 
shall be posted in a conspicuous place in each office of such member 
of the Trade and shall be available at the agency designated by the 
Code Authority or appropriate Administrative Board for the perusal 
of all persons interested. It shall be an unfair trade practice for 
any member of the Trade to sell, offer to sell or otherwise provide 
service except in accordance with his individual schedule. Any 
member may, however, meet the filed price of a competitor whose 
filed price is lower Avhere such competitor actually quotes without 
collusion a price to a customer or prospective customer, provided 
that all facts relating to such transaction are immediately reported 
to the appropriate Administrative Board. Knj member of the Trade 
may file a new schedule effective ten (10) days after filing." 

2. Such schedules shall provide a return for each service listed at 
least equal to the sum of the wages necessary under this Code and to 
compensate the direct labor required to perform such service and 
all items of expenses and overhead required by the cost-accounting 

' See paragraph 2 of order approving this Code. 



366 

methods established for the Trade by the Code Authority and 
approved by the Administrator. 

The tariff rates or charges for each of the services listed in the 
schedules shall be separate and distinct, and shall be named in 
writing when making quotations, and such rates or charges shall be 
assessed for each and every service performed, 

3. The following unfair trade practices are prohibited : 

(a) The 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 type 
of service rendered by the Trade, or otherwise, having the tendency 
or capacity to mislead or deceive customers or prospective customers. 

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

Rebating of any kind, including furnishing packing material 
without proper charge, giving of free storage, free insurance or any 
other form of discount or allowance. 

(c) The soliciting of business after knowledge that a competitor 
has secured a signed order for the work. 

(d) Engaging in the long distance removal of used household 
goods, or used office furniture and equipment, without requiring an 
order signed by the shipper, or his agent, prior to the commencement 
of the moving operation. 

Article VIII^ — Modification 

1. This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance with the provisions 
of subsection (b) of Section 10 of the National Industrial Recovery 
Act, from time to time to cancel or modify any order, approval, 
license, rule or regulation issued under Title I of said Act and 
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 shall be based on the recommendations of the Code 
Authority or of any interested party or group or on the Adminis- 
trator's own initiative and shall become effective on approval by 
the President. 

Article IX — Monopolies 

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

Article X — E^^ECTI^'E Date 

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

Approved Cotle No. 399. 
Ilegistry No. 1715-14. 

o 



Approved Code No. 400 
CODE OF FAIR COMPETITION 

FOR THE 

CELLULOID BUTTON, BUCKLE AND NOVELTY 
MANUFACTURING INDUSTRY 

As Approved on April 20, 1934 



ORDER 



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

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive 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, 
Adrnjinistrator for IfuLusti^l Recovery. 

Approval recommended: 
Sol a. Rosenblatt, 

Division Administrator. 

Washington, D.C, 

April W, WS4. 

54196° 482-141 34 (367) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : The Public Hearing on the Code of Fair Competition for the 
Celhiloid Button, Buckle and Novelty Manufacturing Industry, as 
proposed by the Celluloid Button, Buckle and Novelty Manufac- 
turers Association, was conducted in the Mayflovrer Hotel, Washing- 
ton, D.C. on October 12, 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 Con- 
sumers' Advisory Boards of the National Recovery Administration 
and of the Legal Division. The Chairman of the Code Committee, 
upon authorization of the Committee, has also given approval to 
the final draft of the Code on behalf of the Industry. 

The Industry, as defined in the Code, includes the manufacture of 
buttons, buckles, and novelties made wholly of celluloid or with 
celluloid as the major raw material. The accessory materials are 
metal, wood and leather, and are used for backing or strengthening 
purposes. The products of the Industry are used primarily in the 
Ladies' Garment Trade and are put on dresses, cloaks and fur coats. 
The products are also used as novelties for the JNIillinery Trade. 
The Industry does not produce for stock. It works exclusively on 
orders. It is estimated that the whole ready stock amounts to less 
than 5,000.00, and this is an accumulation of stock produced in 
excess of orders. 

In 1928 there were 20 concerns in the Industry with 725 employees. 
The aggregate production amounted to $2,100,000.00. In 1933 there 
were 39 concerns, and 1,550 employees. The estimated production 
was $2,800,000.00. This indicates that the number of employees has 
been more than doubled in five years. 

It was attempted first by the Deputy Administrator to combine 
the various Button Codes into one Code for the entire Industry, but 
this was found to be impracticable inasmuch as no unanimity could 
be reached by the representatives of the different branches of the 
Industry. However, a provision has been incorporated in this Code 
which, if agreed upon by all branches of the Industiy, may open the 
way for a cooperative administration of the several Codes. 

The submitting Association represents 75% of the Celluloid But- 
ton, Buckle and Novelty Manufacturers in the United States, and 
88% of the volume of business. 

RESUME OF THE CODE 

Article I gives the purposes of the Code. 
Article II sets forth certain definitions. 

Article III contains the maximum hours' provisions of the Code. 
Article IV establishes the minimum wage for all employees em- 
ployed in the Industry. 

Article V sets forth the general labor provisions. 

(368) 



369 

Article VI provides the general organization of the Code Authority 
and defines its powers and duties. 

Article VII defines trade practices which are unfair and shall be 
eliminated. 

Article VIII provides for employers who may be partly engaged 
in this Industry and partly in another. 

Article IX provides for the modification of this Code in accord- 
ance with Section 10 (b) of the National Industrial Recovery Act. 

Article X states that this Code shall not permit monopolies. 

Article XI deals with price increases. 

Article XII specifies the effective date. 

FINDINGS 

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

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 
ing unfair competitive 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) Said industry normally emjjloys 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 the said association imposes no inequitable restric- 
tions on admission to membership therein. 

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

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

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

For these reasons the Code has been approved. 

Hugh S, Johnson, 

Administrator, 
April 20, 1934, 



CODE OF FAIR COMPETITION FOR THE CELLULOID 
BUTTON, BUCKLE AND NOVELTY 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 Celluloid Button, Buckle and Novelty- 
Manufacturing Industry, and shall be the standard of fair competi- 
tion for this Industry, and shall be binding upon every member 
thereof. 

Article II — Definitions 

1. The term " Industry " as used herein, includes the manufac- 
ture of buttons, buckles and novelties made wholly of celluloid 
or with celluloid as a major raw material, and such other related 
products as may from time to time be included mider the provisions 
of this Code by the Administrator after such notice and hearing as 
he may prescribe. 

2. 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 own behalf. 

3. Tile term " employee " as used herein includes any person en- 
gaged in any phase of the Industry in any capacity receiving com- 
pensation for his services, irrespective of the nature or method of 
payment of such compensation or his interest otherwise in said 
Industry. 

4. The term " employer " as used herein includes any one for 
whose benefit such employee is so engaged. 

5. The terms " President ", "Act " and "Administrator " as used 
herein, shall mean, respectively. President of the United States, 
Title I of the National Industrial Recovery Act, and the Administra- 
tor 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 (1) week, nor 
more than eight (8) hours in any twenty-four (24) hour period. 

2. No employee shall be permitted to work for more than five 
(5) days in any seven (7) day period. 

3. No manufacturing operations shall be performed on any Satur- 
day or Sunday, except that such operations may be performed on 
the Saturday of a week in which a legal or religious holiday occurs 
during the normal work week. 

4. The Code Authority, subject to review by the Administrator, 
may determine the hour before which work shall not begin, and the 

(370) 



371 

hour after which work shall cease, and may determine in Avhich 
localities such regulations shall apply. 

5. No person employed in clerical or office work shall be permitted 
to work in excess of forty (40) hours per week averaged over a 
one (1) month period. 

6. No person employed as a shipping clerk shall be permitted to 
work in excess of forty (40) hours per week averaged over a three 
(3) month period, 

7. Employees engaged in maintenance or in emergency repair 
work may be permitted to work more than forty (40) hours in any 
one week provided one and one-third (IVs) times the regular hourly 
rate is paid such emploj'ees for such overtime. No watchmen shall 
be permitted to work more than forty-four (44) hours in any 
one week. 

8. The provisions of this Article shall not apply to employees 
employed in managerial or executive capacities who earn Thirty- 
Five (35.00) Dollars per week or more, nor to outside salesmen. 

9. 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. 

10. Plant operations shall be limited to one (1) shift of forty 
(40) hours per week. 

Article IV — Wage Rates 

1. No employee shall be paid at less than the rate of Fourteen 
($14.00) Dollars per week of forty (40) hours. 

2. Learners may be paid at not less than the rate of eighty per 
cent (80%) of the minimum wage provided herein for a period not 
to exceed twelve (12) weeks; provided that in no case shall the total 
number of learners employed exceed ten per cent (10%) of the total 
number of employees. However, any employer shall be entitled to 
employ at least one learner. 

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

4. 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 un- 
der the National Industrial Recovery 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. 

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

6. 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 

1. No person under sixteen (16) years of age shall be employed 
in the Industry. No person under eighteen (18) years of age shall 



372 

be employed at operations or occupations which are hazardous in 
nature or detrimental to health. The Code Authority shall submit 
to the Administrator before May 1, 1934, a list of such operations 
or occupations. In any State an employer shall be deemed to have 
complied with these provisions 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 
the employee is of the required age. 

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

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

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

5. No employer shall reclassifv employees or duties of occupation 
performed or engage in any subterfuge so as to defeat the provi- 
sions 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 for safety and health shall be submitted by the Code 
Authority to the Administrator within six (6) months after the 
effective date of this Code. 

7. No provision in this Code shall supersede any Federal or 
State law 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. 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 emploj^ees. 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 Authority, on the request 
of such person, shall furnish him with certified copies of such modi- 
fications, exemption or exception in sufficient number for posting 
along sicle 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. 

9. No member of the Industry shall give out work to be performed 
in any home or dwelling place. 



373 

Article VI — Administration 

1. Organization and Constitution of the Code Authority. 

(a) The Code Authority, hereby established, shall consist of not 
more than nine (9) members. Six (6) members shall be elected by 
the Celluloid Button, Buckle and Novelty Manufacturing Associa- 
tion. In addition thereto, the Administrator may appoint not more 
than three (3) members who shall be without vote and together with 
the Administrator shall be given notice of and may sit at all meet- 
ings 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 the 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 eifec- 
tuate 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 regards 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 regards 
comply with the provisions of the Act, he 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 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 Admin- 
istrator, on the basis of volume of business and/or such other factors 
as may be deemed equitable and approved by the Administrator. 

(e) Nothing contained in this Code shall constitute the members 
of the Code Authority partners for any purpose. Nor shall any 
member of the Code Authority be liable in any manner to 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 any one for any action or omission to act under the Code, 
except for his own willful misfeasance or non-feasance. 

2. The Code Authority shall have the following powers and duties 
in addition to those elsewhere provided in this Code : 

(a) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code, in accord- 
ance wath the powers herein granted, and to submit same to the 
Administrator for his approval together with true copies of any 
amendments or additions when made thereto, minutes of meetings 
when held, and such other information as to its activities as the 
Administrator may deem necessary to effect the purposes of the Act. 

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



374 

as soon as the necessary readjustment within the Industry can be 
made, and to give asssistance to members of the Industry in improv- 
ing methods, and otherwise. All individual reports shall be kept 
confidential as to members of the industry and only general 
summaries thereof may be published. 

(c) To receive complaints of violation of this Code, make investi- 
gations thereof and provide hearings thereof and adjust such com- 
plaints, and bring to the attention of the Administrator recommenda- 
tions, and information relative to unadjusted violations, under such 
rules and regulations as may be prescribed 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 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 
cocles, if any, as may be related to the industry, or any subdivision 
thereof, and to delegate to any other administrative authority, with 
the approval of the Administrator, such powers as will promote 
joint and harmonious action upon matters of common interest. 

(f ) To provide ways and means for financing the operation of said 
Code Authority and to have the power and duty to determine an 
equitable method of apportioning in the industry the cost of admin- 
istering this Code. Money raised in any manner shall not exceed in 
amount such reasonable cost. 

(g) 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 sta- 
bilization of employment; and including modifications of this Code 
wdiich shall become effective as part hereof upon approval by the 
Administrator after such notice and hearing as he may specify. 

(h) 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 comj^laints to the proper government 
agencies on behalf of this industry. 

(i) To cause to be formulated an accounting system and methods 
of cost finding and/or estimating adaptable for use by all members 
of the industry. After such system and methods have been formu- 
lated, 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. 

(j) To recommend to the Administrator appropriate provisions 
for the regulation of the disposal of distress merchandise. 

(k) 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 rep- 
resentatives designated by the Code Authorities of the related Codes 
referred to above. Such representatives shall be duly authorized to 
constitute a committee, which committee shall, as soon as practicable, 



375 

submit to the Administrator reports and recommendations with 
respect to : 

(1) The establishment and method of selection of a General But- 
ton Manufacturers Coordinating Council. 

(2) The jurisdiction, as well as the administrative powers and 
authority to be delegated to such Coordinating Council. 

Upon approval by the Administrator, after such notice and hear- 
ing as he shall prescribe on recommendations of the Council, the Code 
Authority shall be subject to the jurisdiction, rules, regulations, and 
by-laws of the General Button Manufacturers Coordinating Council 
in the form and manner approved by the Administrator, any express 
or implied delegation of power or duty in this Code to the Code 
Authority notwithstanding. 

3. In addition to the information required to be submitted to the 
Code Authority as set forth in this Article there shall be furnished 
to government agencies such statistical information as the Adminis- 
trator may deem necessarj'- for the purposes recited in Section 3 (a) 
of the National Industrial Recovery Act. Nothing in this Code 
shall relieve any member of the Industry of any existing obligations 
to furnish reports to any government agency. 

4. If the Administrator shall determine that any action of a code 
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. 

Article VII — Trade Practices 

1. No member of the Industry shall use advertising, whether 
printed, radio, display or of au}^ other nature, or other representation 
which is inaccurate in any material particular, or in any way mis- 
represent any commodity, including its use, trade-mark, grade, qual- 
ity, quantity, origin, size, substance, character, nature, finish, mate- 
rial 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 advertising or selling 
methods or credit terms which have the capacity or tendency to de- 
ceive or mislead the customer or prospective customer. 

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 
commodity in any manner which tends to deceive or mislead pur- 
chasers with respect to the brand, grade, quality, quantity, origin, 
size, material content or preparation of such commodity. 

5. 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, poli- 
cies or services. 



376 

6. 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, wdiether in the form of money 
or otherwise for the purpose of influencing a sale, nor shall a mem- 
ber extend to any customer any special privilege not extended to 
all customers of the same class. 

7. No merchandise shall be exchanged at any time nor shall it 
be consigned, nor in any method of selling to be engaged in which 
shall have the effect of selling on memorandum, or approval. No 
merchandise shall be accepted for return except for defects in 
manufacture, delay in delivery, or errors in shipment. 

8. No member of the Industry 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 em- 
ployee or the principal of such agent without the knowledge of such 
employer or principal. Commercial bribery provisions shall not be 
construed to prohibit a general distribution of articles commonly 
used for advertising, except so far as such articles are actually 
used for commercial bribery as 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 such member interfere with or 
obstruct the performance of such contractual duties or services. 

10. No member of the Industry shall require that the purchase 
or lease of any commodity be a prerequisite to the purchase or lea.se 
of any other commodity. 

11. No member of the Industry shall give cash discounts in excess 
of the following: 2% ten days e.o.m., net 30 days; or 3% ten days. 

12. No member of the Industry shall ship goods other than F.O.B. 
point of origin. 

13. No member of the Industry shall sell any commodity at a price 
below his own individual cost. However, any member may meet 
the price of a competing member of the Industry whose cost under 
this provision is lower. Cost shall be determined in accordance 
with Section 2 (i) of Article VI of this Code. Distress merchan- 
dise may be sold below cost as hereinabove provided for until 
such time as the Code Authority in accordance with Article VI, 
Section 2 (j), shall recommend to the Administrator appropriate 
provisions for the regulation of the disposal of such merchandise. 

(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 main- 
tenance of the provisions of this Code, it 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 Ad- 
ministrator may require. The Administrator may approve, disap- 
prove, 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 product 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, 



I 



377 

upon its own initiative or upon the request of any interested party, 
shall cause the determination to be reviewed. 

Article VIII — General 

Any emploj'^er who at any time, or times, shall manufacture any 
article or articles within 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 such articles covered by 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 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 — 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. 

Artiole XI — Price Increases 

Wliereas 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 on the second Monday after its 
approval. 



Approved Code No. 400. 
Registry No. 1009-05. 



o 



Approved Code No. 401 
CODE OF FAIR COMPETITION 

FOR THE 

COPPER INDUSTRY 

As Approved on April 21, 1934 



ORDER 

Approving Code of Fair Competition for the Copper 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 Cede of 
Fair Competition for the Copper 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 Pres- 
ident, including Executive Order 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 wdth the pertinent 
provisions and Avill promote the purposes and policy 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 pro- 
visions of Article VII be deleted entirely and there be substituted 
therefor the following to be called 'New Article VII': 

NEW article VII — MARKETING PROVISIONS 

1. Sales to be covered and reported. — The provisions of this Article 
shall appl}^ only to sales of duty free copper for domestic consumption 
except as provided in subsections (17) and (18) of Section 6 hereof. 
All sales of copper for domestic consumption shall be reported to the 
Sales Clearing Agent, and charged against sales quotas as hereinafter 
provided for, provided however, the tonnage of all other sales of 
duty free copper shall also be so reported. 

2. Filing of j^rices. — At least two days prior to the effective date of 
the establishment of any sales quota pursuant to the provisions of 
this Code, each party to whom such sales quota has been assigned 
shall file with the Sales Clearing Agent a statement showing his selling 
price of copper, as herein defined, together with his existing differen- 
tials. Not later than during business hours of the day preceding the 

54397° — —482-142 34 (379) 



380 

effective date of the establishment of sales quota, the Sales Clearing 
Agent shall notify each member of his filed price and differentials, 
and also those of all other members, to become effective the next day. 
Thereafter selling prices and/or differentials may be changed by giving 
notice thereof to the Sales Clearing Agent prior to two o'clock P.M. 
(New York City time) on any business day except Saturday, which 
new price and/or differentials shall be effective at the beginning of 
business on the next business day. Notice to others shall be given in 
each case, as above provided. After notice of any such change of 
price and/or differential has been received by the Sales Clearing Agent 
any other party having a sales quota may give like notice during the 
balance of that day and in such case all such new prices and/or differ- 
entials shall become effective at the beginning of business on the fol- 
lowing business day. After the effective date of this Code no sales 
of copper shall be made at a price or differential other than that speci- 
fied by the seller in his filed statements and in effect at the time of the 
sale. The Code Authority shall have the average weighted sales price 
computed each day and immediately furnish it to the trade papers 
and public press as the "Quotation issued by the Code Authority for 
Copper offered for sale in the Domestic Market pursuant to the pro- 
visions of the Copper Code", and the trade papers and public press 
shall be requested to use this quotation only for copper so offered, and 
to issue a separate quotation for copper not offered for sale pursuant 
to the provisions of this Code. The Code Authority with the approval 
of the Administrator, or the Administrator on his own initiative, may 
from time to time make such other rules and regulations with refer- 
ence to filing of prices and/or differentials and the averaging and 
publication thereof as it may deem necessary. 

3. Filing qf treatment charges by secondary producers. — In addition 
to selling prices as filed there may, and upon request of any two 
producers of secondary copper there shall, be filed by producers of 
secondary copper a schedule of treatment charges covering the 
different grades of scrap material and these may be amended in the 
same manner as any other filed prices. Custom smelters and/or 
refiners shall not treat on toll any secondary copper-bearing material 
except: 

(a) Scrap or other similar material produced by fabricators or 
manufacturers in the normal course of fabricating operations and 
tendered by such fabricators for treatment and return to them, or 

(b) Scrap or such other material, the treatment of which is the 
subject of contracts entered into prior to March 12, 1934, or renewals 
thereof if approved by the Code Authority for exception. 

(c) The Code Authority with the approval of the Administrator 
may make other exceptions upon request by the custom smelters 
and/or refiners. 

By "treatment on toll" is meant treating material for a service 
charge payable in money or metal, and returning the copper content 
in refinery shapes only or its equivalent, in whole or in part. 

4. Relief against excessive selling price. — If at any time during the 
efl'ective period of this Code the selling price of copper shall reach a 
level which in the judgment of the Code Authority or the Adminis- 
trator is deemed to be unreasonably high, considered both 'with respect 
to the cost of production and with respect to the consuming public, 
the Code Authority with the approval of the Administrator, or the 



381 



Administrator on his own initiative, may temporarily suspend any or 
all of the marketing provisions contained in this Article VII as shall 
be deemed most effective in the holding of the prices to reasonable 
levels and in the event such action is deemed to be necessary any such 
stay may be made permanent. 

5. Exemption from sales plan. — If at any time during the effective 
period of this Code anyone holding a sales quota thereunder shall, by 
virtue of the operation of the Sales Plan, have accumulated a deficit 
in his allocated sales in the aggregate equal to one full month's sales 
quota of such party, and he shall have notified the Code Authority of 
the existence of such deficit, and if thereafter such deficit should 
increase to an amount equal to the party's sales quota for one and 
one-third months, then upon the party giving a supplemental notice 
of the fact to the Code Authority, after an interval of at least ten days 
after said preliminary notice, all the provisions of this Article VII 
shall terminate, including the agreements referred to in subdivision 6, 
subsection 12, paragraph (c), of this Article VII. 

6. Sales plan— quotas and allocation. — (1) From and after the effec- 
tive date of this Code all sales of copper by those governed by this 
Code shall be made in conformity with the provisions of this Article 
VII. 

The Administrator upon his own initiative, or the Code Authority 
with the approval of the Administrator, may establish rules and regu- 
lations to effectuate the purposes of the Sales Plan. Until the estab- 
Ushment of such rules and regulations by the Code Authority the 
Sales Clearing Agent shall set up rules and regulations which in his 
judgment are designed to carry out the spirit and intent and general 
purposes of the Sales Plan, subject to the review and disapproval of 
the Administrator. The purpose of this Sales Plan is to provide in 
so far as possible a first place in sales for current production and 
then to provide for a fair and equitable sale of stocks. 

(2) Until such time as the Code Authority may determine that such 
member has failed to comply with the provisions of this Code and 
such determination has been approved for the purpose by the Ad- 
ministrator, the monthly sales quota for each primary producer of 
the industry listed below and the relative annual productive capacities 
of such members, arrived at solely for the purpose of estabhshing 
sales quotas, shall be as follows: 



Tons 
per annum 



Monthly 
sales quotas 



Kennecott Copper Corporation 

Anaconda Copper Mining Company 

Phelps Dodge Corporation 

United Verde Copper Company 

Calumet & Hecla Consolidated Copper Company 

Miami Copper Company 

Magna Copper Company 

United Verde Extension Mining Co 

Consolidated Coppermines Co 

Copper Range Company - 



366, 500 
225, 000 
168, 000 
68,000 
50, 000 
36, 000 
25,000 
24,000 
21,000 
17,600 



Percent 
1.67 
1.67 
1.07 

i.eo 

2.20 
2.30 
2.50 
2.50 
2.70 
3.00 



(3) In addition to the sales quotas provided above an aggregate 
sales quota of 9,500 tons per month shall be allocated as individual 
sales quotas among the producers of secondary copper by some 
equitable method agreed upon by such producers and approved by 



382 

the Code Authority. In the event the producers of secondary copper 
are unable to agree then such allocation shall be made by the 
Administrator. 

(4) Any producer who shall assent to the Code and/or Sales Plan 
who is entitled to, but has not received, a sales quota may apply for 
a sales quota. If, however, the product of such producer is treated 
by a custom smelter or refiner such custom smelter or refiner may, 
if the producer shall fail to apply for a quota, make apphcation in 
its name but for the account of such producer. During the first sales 
period each producer of custom and by-product copper shall have 
a quota equal to fifty (50%) percent of the copper produced and 
treated at the treatment plant. The allocation of such quota in the 
amount of fifty (50%) percent of the production treated during such 
first sales period shall not serve as a precedent or in any way be con- 
trolling in the determination of the sales quota applied for by any 
such producer for the period subsequent to said first sales period. 

(5) The Code Authority shall have no power to decrease sales 
quotas established pursuant to subsections (2) and (3), of tliis Section 
6, save upon unanimous vote of the Code Authority and the consent 
of the party or parties whose quotas are to be thereby decreased. 
But the Code Authority upon a two-thirds vote of its membership 
and with the approval of the Administrator, may increase any such 
sales quota. In the event the sales quotas of primary producers are 
generally increased they shall be increased ratably to the end that 
the increase for each individual producer will be such as to arrive 
simultaneously at a sales quota equal to fifty (50%) percent of their 
respective capacities; and further in the event of any increase in 
quotas of primary producers proportionate increases shall be made in 
the sales quotas of secondary producers as shall be justified by the 
then existing conditions. 

Nothing contained herein, however, shall be construed so as to 
limit the right of the Administrator at any time after proper notice 
and giving all parties an opportunity to be heard, to make such change 
as he may deem necessary in the sales quotas, or Sales Plan provided 
for herein. 

(6) Until a change is approved by the Administrator and the Code 
Authority, or by the Administrator alone, the aggregate sales quotas 
given pursuant to Subsection (2) and Subsection (4) of this Section 6 
shall not exceed twenty thousand five hundred (20,500) tons per 
month. 

(7) Allocations of sales must be accepted by those holding sales 
quotas provided they have copper available for delivery wdthin the 
delivery period covered by such allocation, except as provided in 
Subsection (14) hereof. A member unable to accept a sales allocation 
shall have no right subsequently to make up the deficiency, except 
that if any producer or producers of secondary copper have been 
unable to accept future sales allocations beyond the current month 
to the same extent that such future allocations have been accepted by 
primarj^ producers, then commencing with the first of the month for 
which such future sales allocations have been made all sales subject 
to allocation shall be allocated to such secondary producers to the 
exclusion of primary producers to the extent of the current intake of 
such secondary producers until such time as each of the secondary 
producers are brought into a proper relation with such primary pro- 



383 

ducers as regards such allocated sales, provided, that this provision 
shall not be applied so as to give any producer of secondary copper 
a greater allocation of sales than if it had accepted all such future 
allocations. 

(8) Sales as made shall be proportionately applied to sales quotas 
for the current month and at the end of the month unsold sales quotas 
shall be carried forward for sale and allocation during the following 
month, except that the unsold quotas carried forward at the end of 
each month for each secondary producer shall be adjusted to eliminate 
the tonnage by which its shortage of accumulated actual secondary 
intake as compared with its accumulated sales quota exceeds its sales 
quota for one and one-half months. If sales quotas for the current 
month have been sold then all sales in excess thereof shall be applied 
to the subsequent month for which the sales quotas have not been 
completely sold so that sales shall be applied to sales quotas for the 
current month, then to each of the two succeeding months. After the 
sales quotas of the current month and next two months have been 
sold, further sales during the current month shall be allocated to and 
applied to copper stocks; provided, however, that prior to a general 
allocation to copper stocks there shall first be set aside fifty percent 
(50%) of all sales then to be allocated to copper stocks, which fifty 
percent (50%) shall be divided so that two-fifths shall go to secondary 
producers in proportion to their respective holdings of secondary 
copper accumulated since October 1, 1933, but limited in any event to 
such accumulations, and three-fifths to by-product and other primary 
stocks, and then the remaining fifty (50%) percent (or whatever larger 
amount there may be available pursuant to the foregoing) shall be 
allocated to copper stocks generally and not to sales quotas. The 
Code Authority shall propose a plan for the handling of such alloca- 
tions to stocks generally which shall be effective when approved by 
the Administrator, and wliich shall provide for the disposal of such 
accumulations by an orderly liquidation, and such sales from stocks 
shall be Blue Eagle Copper within the meaning of this Code. 

(9) The sale of copper by any member of the Industry without 
first having received an assignment of a sales quota pursuant to the 
provisions of this Code, or otherwise in contravention of any of the 
provisions of this Code, shall be a violation of this Code; provided, 
however, that holders of copper who are without sales quotas and 
who are unable to obtain sales quotas and custom smelters and/or 
refineries whose intake is in excess of their sales quota and to the ex- 
tent of such excess may sell such copper but it shall not be eligible 
to be called Blue Eagle Copper and shall not be considered copper 
offered for sale pursuant to the provisions of the Copper Code, and 
all invoices and papers covering such transactions shall be plainly 
marked "The copper covered in the transaction is Not Blue Eagle 
Copper and is Not qualified to be used in the manufacture of any 
articles for sale to the U.S. Government as provided for in the Presi- 
dent's Order of Approval for the Code of Fair Competition for the 
Copper Industry. " All sales of copper, however, shall be promptly 
reported to the Sales Clearing Agent of the Code Authority. 

(10) It shall be a violation of this Code for any member of the 
Industry by any transaction with another member to buy, sell, 
exchange or receive any stocks of copper so as thereby to be allowed, 
or enable another to participate in the Sales Plan and/or receive a 



384 

sales quota and dispose of copper pursuant thereto, to an extent or 
in such manner as would not otherwise have been possible if such 
purchase, sale, exchange or receipt of copper had not taken place, 
provided, however, that this provision shall in no manner prohibit 
the bona fide sale of copper produced by the seller or owned by it on 
the effective date of this Code, in the event that such sale is made 
pursuant to the other provisions of this Code. 

(11) Ail allocations of sales quotas and stock shall be made by the 
Sales Clearing Agent. A computation shall be made by the Sales 
Clearing Agent daily of the percentage of sales applied to each sales 
quota in relation to the aggregate of all quotas and a daily allocation 
shall be made at the average price of all sales made on that date, 
after making such eliminations and additions, as to sales, as may be 
required by virtue of the other provisions of this Code. In the event, 
at the end of the month, sales and purchases are necessary between 
those holding sales quotas in order to adjust actual sales to sales 
quotas, they shall be made pursuant to the daily computations and 
allocations made by the Sales Clearing Agent during that month. 
Proper allow^ance shall be made by the Sales Clearing Agent for differ- 
entials including freight charges, varying types and quality of copper, 
sales commissions, and time of dehvery. Full information may be 
obtained upon request from the Sales Clearing Agent concerning 
any such computations or allocations. 

(12) In order to maintain the proper relation between sales and 
production: 

(a) Any primary producer in operation and producing copper on 
the effective date, or any other primary producer not producing 
copper on that date but which after the effective date resumes such 
production, which fails to produce its sales quota reasonably averaged 
over a period of thi'ee months, or such longer period as the Code 
Authority or the Administrator may have approved, shall thereafter 
lose its right to participate in the allocation of sales by the Sales 
Clearing Agent proportionately to the extent of such decrease in pro- 
duction; provided, however, that the foregoing provision shall not 
apply in the event of a shutdown or decrease in production on account 
of causes beyond the control of the producer or for any reason which, 
in the opinion of the Code Authority and the Administrator, or the 
Administrator on his own initiative, justifies such shutdown or 
decreased production; provided, further, that in addition to limita- 
tion on sales of primary copper provided in this Article VII primary 
producers shall limit their production so as to conform to the plan and 
purpose of this Code, and to coordinate the production of primary 
copper with current sales, quotes in order to avoid excessive accumu- 
lation of stocks and any failure reasonably so to do to the satisfaction 
of the Code Authority shall be a violation of this Code. 

(b) No specific limitations or requirements shall be imposed upon 
the intake of secondary copper producers, but in lieu thereof sales of 
secondary copper shall be controlled and limited as provided in this 
Article VII. Custom smelters and/or refiners shall endeavor, so far 
as practicable, to limit their intake of secondary copper so as to con- 
form to the plan and purpose of this Code, and to coordinate the flow 
of copper and of intake material with current sales quotas in order to 
avoid excessive accumulation of stocks. 

(c) All consumers of copper, including fabricating or manufacturing 
companies owned or controlled by producers who are members of the 



385 

Industry, shall be urged by the Code Authority to assist in the 
stabilization of the Industry by regular monthly purchases of copper 
in as large an amount as may be practicable in each case, and shall be 
similarly urged to enter into agreements to make such purchases. 
Upon the execution of such an agreement by a copper consumer in 
form and substance satisfactory to the Code Authority, or the Admin- 
istrator, and for so long as the terms of such agreement are complied 
wdth, and no other copper other than Blue Eagle Copper is purchased, 
all copper sold and/or fabricated by such consumer shall be "Blue 
Eagle Copper", as defined herein. The Code Authority of this 
Industry shall cooperate with the Code Authority and/or Super- 
visory Agency of the Copper and Brass Mill Products Industry and 
the Wire and Cable Subdivision of the Electrical Manufacturing 
Industry in eft'ectuating the purposes of the marketing and fair trade 
practice provisions of this Code. 

(d) For the purpose of the Sales Plan, sales and/or transfers of 
copper by a member holding a sales quota (including any of its sub- 
sidiaries or affiliates) to its fabricating plants or to any subsidiary 
fabricating company, shall not be subject to said plan, except to the 
extent set forth in agreements made by the fabricating subsidiaries 
of such producer under the terms of the preceding paragraph (c); 
provided, however, that in ca,se a member owning a fabricating plant 
or the fabricating subsidiaries of any one holding a sales quota should 
fail to make an agreement under the terms of the preceding paragraph 
(c), the sales of copper by that member shall be determined by the 
Administrator or in the event of his unwillingness to act, by the Code 
Authority. 

(e) In order to provide equitably for an increase in employment 
by increasing current production and/or to facilitate liquidation 
of excessive copper stocks in a manner which will not interfere with 
the operation of the Sales Plan pursuant to the provisions of this 
Code, the Code Authority, with the approval of the Administrator, 
may negotiate bulk sales of copper to, through, and/or with the ap- 
proval of government agencies, provided, however, that no commit- 
ment shall be made for or become binding on any member of the 
Industry unless he shall accept the allocation made to him by the 
Code Authority of his proportionate share of any sale so negotiated, 
except to the extent he is obligated to sell copper under the provisions 
of this Code. 

(13) All sales of copper made during the period from March 22, 
1934, to the efi"ective date of this Code shall be deemed for the pur- 
poses of the Code to be sales made after the effective date and shall 
be allocated in accordance with the Sales Plan provided for herein. 
AH sales commitments under subsection (c) of Section 12 of this 
Article shall also date from March 22, 1934, and be included in the 
first sales period. 

(14) In order to facihtate the sale of the aggregate of all sales quotas 
in any current month, any one having a sales quota may, prior to 
the first of each month, with the approval of the Code Authority, 
waive his sales quota or any part thereof, for the following month. 

(15) In no event, however, shall any member of the industry be 
required to accept allocation of sales made pursuant to the Sales 
Plan which will require him to reduce the amount of copper stocks 
held by him and unsold on March 1, 1934, less stocks liquida-ted by 

54397° 482-142—34 2 



386 

such member since that date, by more than 25% thereof, but no 
such hmitation shall apply until the Code Authority receives notice 
from any such member of the Industry that further sales will require 
him to reduce his stocks beyond that percentage. 

(16) The first sales period shall be deemed to terminate on the 
last day of the current month in which the effective date of the Code 
occiu's, subject to the provisions of subsection (13) of this Section 6 
and accordingly the first sales period shall extend from March 22, 1934, 
to the last day of the month in which such effective date occurs. 
The sales quota for such first sales period shall be decreased or in- 
creased as the case may be if necessary so as to bear the proper pro- 
portion to the number of days in such first sales period. 

(17) In addition to other limitations which m.ay exist pursuant to 
other provisions of this Code, the Code Authority with the approval 
of the Administrator, or the Administrator on his own initiative, may 
make rules and regulations governing any sales of copper in excess 
of sales quotas, which may limit the quantity of copper which may 
be sold and may also make such pro\isions as may be necessary to 
prevent excessive purchases by consumers in relation to their rea- 
sonable requirements for the immediate future; provided, however, 
that no provisions shall prohibit any member of the Industry from 
selling the full production requirements of any of its subsidiary 
fabricating companies. 

(18) No member of the Industry shall engage in destructive price 
cutting. 

(19) Whenever, upon complaint or on its own initiative without 
complaint, and after affording an opportunity to any interested party 
to be heard, the Code Authority is of the opinion that an emergency 
exists within the Industry in that destructive price cutting and/or 
excessive production is being engaged in to such an extent as to 
render inefi'ectual or seriously endanger the effectuation of the pur- 
poses of this Code or of the Act so as to require the establishment of 
minimum prices for the sale of copper and/or regulation of produc- 
tion, the Code Authority shall certify any such conclusion to the 
Administrator and, upon his approval thereof, after hearing on such 
notice as he may prescribe, such minimum prices and/or regulation 
of production may be established and the Code Authority may adopt 
rules and regulations satisfactory to the Administrator governing 
the establishment of such minimum prices for the sale of copper and/or 
regulation of production based on such factors and/or conditions as 
may be found necessary to meet such emergency; provided, however, 
that no provision of this Code or of any rules and regulations which 
may be promulgated pursuant thereto shall be interpreted so as to 
require any member of the Industry to reduce his production below 
his sales quota as originally established pursuant to the pro\asions of 
this Code. When a minimum price as herein provided for shall be 
established any sale below such price will be considered destructive 
price cutting and a violation of this Code; and (2) there shall be 
added to, and as a part of Article VIII the following provision: 

In order to facilitate the enforcement of the Executive Order of the 
President No. 6246, dated August 10, 1933, and the Executive Order 
of the President No. 6646, dated March 14, 1934, concerning Govern- 
ment Contracts for supplies, and to effectuate the purpose of the Act 
and this Code, it is provided that: 



387 

(a) Only copper sold pursuant to the marketing provisions of this 
Code shall be entitled to be called "Blue Eagle Copper" and only 
"Blue Eagle Copper" shall qualify as complying with the Executive 
Orders above referred to. Certificates for the purpose of complying 
with said Executive Orders of the President shall provide that all 
articles covered by such certificates shall be completely free of any 
copper save "Blue Eagle Copper." 

(b) For no other purpose of this Code shall copper be deemed to be 
such copper as has been sold pursuant to the provisions of this Code 
if the same shall contain any copper other than "Blue Eagle 
Copper." 

(c) The Code Authority, or the Administrator, shall provide rules 
and regulations for determining the eligibility of copper to be called 
"Blue Eagle Copper." 

(d) All "Blue Eagle Copper" shall either be stamped with the 
replica of the N.R.A. insignia when such copper passes through the 
smelter and/or refinery, or be accompanied by a certificate by such 
smelter, refiner, and /or Code Authority that such copper is "Blue 
Eagle Copper." 

(3) The last sentence of Section 2, Article IX, shall be changed to 
read as follows: "Any action taken by the Coordinating Committee 
under any of the provisions of this Article IX shall be subject to the 
approval of the Administrator"; and 

(4) The last two sentences of Section 5 (d), Article VI, which impose 
the costs of investigation, examination, or audit on a member of the 
Industry complained against if the complamt is justified and on a 
complainant member of the Industry if the complaint is not justified, 
shall be effective only as to those members of the Industry who shall 
have assented to the Code. 

Hugh S. Johnson, 
Administrator Jor Industrial Recovery. 
Approval recommended: 
K. M. Simpson, 

Division Administrator. 

Washington, D.C. 

Avril 21, 1934. 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Copper Industry, as revised after a PubHc Hearing conducted in 
Washington, D.C., on March 12 and 13, 1934, adjourned and recon- 
vened on March 20, 1934, in accordance with the provisions of the 
National Industrial Recovery Act. 

GENERAL STATEMENT 

Before outlining in detail the provisions of this Code it seems 
appropriate to describe the condition of the Industry and some of the 
problems facing it. 

Copper is practically an indestructible metal. Nearly all the copper 
that has been mined is either in use or available for use. Refined 
copper is derived from two sources, primary or new copper produced 
from mining operations, and secondary copper resulting from the 
reprocessing of materials containing copper which is flowing back to 
the market in the form of junk or scrap. In recent years secondary 
copper has supplied about twenty percent (20%) of the total con- 
sumption. However, the flow of scrap back on the market is not in 
direct proportion to consumption and in the last year the percentage 
of scrap has been somewhat higher. 

Copper is mined in many states. The more important, and prac- 
tically the only mines in operation are located in Arizona, Utah, 
Montana, Nevada, New Mexico, and Michigan. 

The annual production capacity of domestic mines is approxi- 
mately 1,000,000 tons of copper per year. To this must be added an 
estimated production of 125,000 tons of secondary copper. As of 
January 31, 1934, stocks of copper amounted to approximately 
775,000 tons. Subtracting from these stocks, normal mill inventories 
and future sales commitments, there was approximately 450,000 tons 
of free stocks on hand. 

If the probable production of copper from scrap was added to the 
free stocks there w^ould be 575,000 tons of copper on hand at the end 
of the next twelve months less actual consumption. With an esti- 
mated consumption of 400,000 tons per year, it is apparent that there 
is copper on hand or coming in the market from scrap to take care of 
domestic requirements for eighteen months without any current mine 
production. 

In other w^ords, if all the copper mines were to shut dowTi for eighteen 
months there would be sufficient copper available for all estimated 
needs during that period. 

The number of people employed in the Industry averaged about 
45,000 per year for the period from 1923 to 1929 inclusive. Since the 
latter date employment has gradually decreased. There w^ere 
approximately 16,000 employees in 1933. 

(388) 



389 

A large number of those employed in the Industry live in commu- 
nities built around the mines. In most cases there is no other type of 
employment available in the community. The falling off of employ- 
ment has been felt very acutely and has resulted in great hardships, 
distress and suf