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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 I . i«^ 




CODES 0^ ' 


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Nos. 4IT-444 


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MAY 4 TO MAY 2:«, iia?; 





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NATIONAL RECOVERY ADMINISTRATION 

HUGH S. JOHNSON, Administrator for Industrial Recovery 



CODES OF FAIR COMPETITION 

Nos. 417-444 
AS APPROVED 

MAY 4-MAY 26, 1934 

WITHJSUPPLEMENTAL CODES, AMENDMENTS 

EXECUTIVE AND ADMINISTRATIVE 

ORDERS ISSUED BETWEEN 

THESE DATES 



VOLUME X 



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VQ OO OUR 7ART 



UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 



MAY 26 1936 



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CONTENTS 



Code 
No. 



Industry 



Date Ap- 
proved, 1934 



Page 



417 
418 
419 
420 
421 
422 
423 
424 
425 
426 
427 

428 
429 
430 
431 
432 
433 
434 
435 
436 
437 
438 
439 
440 
441 
442 
443 
444 



CODES OF FAIR COMPETITION 

Batting and Padding 

Counter Type Ice-Cream Freezer 

Soft Lime Rock 

Gypsum 

Marble Quarrying and Finishing 

Canvas Stitched Belt Manufacturing 

Drop Forging __- 

Spice Grinding 

Manganese 

Paper Makers' Felt 

Curled Hair Manufacturing I dustry and Horse Hair 

Dressing 

Mechanical Packing 

Canned Salmon 

Package Medicine 

Toll Bridge 

Specialty Accounting Supply Manufacturing 

Cotton Pickery 1-- 

River and Harbor Improvemeijt 

Shower Door 1.1 -y ^-. --1 

Fur Manufacturing 

Bicj'cle Manufacturing 

Abrasive Grain 

Tank Car Service 

Dowel Pin Manufacturing 

Bias Tape 

Lead 

Nickel and Nickel Alloys 

Shoe Pattern Manufacturing 



Mav 5 
Mav 5 
Ma'y 7 
May 7 
Mav 9 
Mav 9 
Mav 10 
Mav 11 
Mav 11 
May 11 

Mav 14 
May 14 
May 15 
Mav 15 
Mav 17 
MaV 17 
May 17 
Mav 18 
May 19 
Mav 19 
May 21 
May 21 
May 22 
May 22 
May 23 
May 24 
May 24 
May 26 



1 
13 
27 
39 
57 
75 
85 
99 
113 
129 

139 
151 
167 
185 
199 
211 
227 
239 
253 
265 
287 
303 
315 
329 
343 
355 
381 
397 



Date 



Page 



AMENDMENTS 

Cleaning and Dyeing Trade, No. 1 

Throwing, No. 2 

Washing and Ironing Machine Manufacturing, No. 1 

Motor Vehicle Retailing Trade, No. 1 

Special Tool, Die, and Machine Shop, No. 1 

Bituminous Coal, No. 2 

Plumbing Fixtures, No. 2 

Ice, No. 1 

American Match, No. 1 

Machinery and Allied Products, No. 1 

Motor Bus, No. 1 

Road Machinery Manufacturing, No. 1 

Robe and Allied Products, No. 1 

Textile Processing, No. 1 

Lumber and Timber Products, No. 9 

(in) 



4-19-34 
4^19-34 
4-19-34 
4-20-34 
4-20-34 
4-22-34 
4-23-34 
4-24-34 
4-24-34 
4-26-34 
4-26-34 
4-26-34 
4-26-34 
4r-2&-34 
4-27-34 



409 
413 
419 
423 
427 
431 
435 
439 
445 
449 
453 
459 
465 
471 
475 



CON TENTS— Continued 



Date 



AMENDMENTS— Continued 

Asbestos, No. 1 

Floor and Wall Clay Tile Manufacturing, No. 1 

Refractories, No. 1 

Ornamental Moulding, Carving and Turning, No. 1 

Rubber Manufacturing, No. 1 

Warm Air Furnace Manufacturing, No. 1 

Light Sewing Industry Except Garments, No. 1 

Structural Clay Products, No. 1 

Graphic Arts, No. 2 

Lumber and Timber Products, No. 10 

Cotton Cloth Glove Manufacturing, Nos. 1 and 2 

Farm Equipment, No. 2 

Construction, No. 3 

Underwear and Allied Products Manufacturing, No. 2. 

Wholesale Wallpaper Trade, No. 1 

Locomotive Manufacturing, No. 1 

Limestone, No. 1 

Screw Machine Products Manufacturing, No. 1 

Laundry Trade, No. 1 

Mutual Savings Banks, No. 1 

Floor and Wall Clay Tile Manufacturing, No. 2 

Machinery and Allied Products, No. 2 

Saddlery Manufacturing, No. 1 

Peanut Butter, No. 1 

Light Sewing Industry Except Garments, No. 2 

Hair and Jute Felt, No. 1 

Machined Waste Manufacturing, No. 1 

Narrow Fabrics, No. 1 



LABOR PROVISIONS 
Alcoholic Beverage Wholesale 



SUPPLEMENTS 

Wholesaling or Distributing Trade, No. 7 (For Radio Whole- 
saling Trade) 

Wholesaling or Distributing Trade, No. 6 (For Wholesale 
Stationery Trade) 

Machinery and Allied Products, No. 2 (For Railway and Indus- 
trial Spring) 

Machinery and Allied Products, No. 1 (For Steel Tire Manu- 
facturing) 

Fishery, No. 3 (For California Sardine Processing) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 18 (For Screw Machine Products 
Manufacturing) 

Machinery and Allied Products, No. 3 (For Locomotive Manu- 
facturing) 

Chemical Manufacturing, No. 1 (For Agricultural Insecticide 
and Fungicide) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 19 (For Cap Screw Manufacturing). 

Fishery, No. 4 (For Atlantic Mackerel Fishing) 

Chemical Manufacturing, No. 2 (For Carbon Dioxide) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 20 (For Machine Screw Nut Manu- 
f a cturing) 

Fishery, No. 5 (For Blue Crab) 

Machinery and Allied Products, No. 4 (For Small Locomotive 
Manufact uring) 

(IV) 



4^27-34 
4^28-34 
4-28-34 
4-28-34 
4-30-34 
4^30-34 
5- 1-34 
5- 1-34 
5- 3-34 
5- 3-34 
5- 5-34 
5- 7-34 
5-10-34 
5-10-34 
5-10-34 
5-12-34 
5-14-34 
5-16-34 
5-17-34 
5-17-34 
5-18-34 
5-18-34 
5-18-34 
5-19-34 
5-22-34 
5-23-34 
5-26-34 
5-26-34 



5-22-34 

4-21-34 

4-21-34 

4-23-34 

4r-23-34 
4-24-34 

4-28-34 

4-30-34 

5- 1-34 

5- 3-34 I 
5- 3-34 
5- 4-34 



5- 5-34 

6- 5-34 

5- 5-34 



733 

747 

759 



CONTENTS— Continued 



Date 



SUPPLEMENTS— Continued 

Packaging Machinery Industry and Trade, No. 1 (For Can 
Labeling and Can Casing Machinery Industry and Trade) — 

Pabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 21 (For Bright Wire Goods Manu- 
facturing) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 22 (For Drapery and Carpet Hard- 
ware Manufacturing) 

Machinery and Allied Products, No. 5 (For Wire Machinery) _ 

Construction, No. 8 (For Roofing and Sheet Metal Contracting) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 23 (For Machine Screw Manu- 
facturtng) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 24 (For Wood Screw Manufacturing) 

Machinery and Allied Products, No. 6 (For Woodworking 
Machinery) 

Machinery and Allied Products, No. 7 (For Beater and Jordan 
and Allied Equipment) 

Wholesaling or Distributing Trade, No. 8 (For Wholesale Dry 
Goods Trade) 

Construction, No. 9 (For Plumbing Contracting) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 25 (For Steel Package Manufactur- 
ing) 

Fabricated Metal Products Manufacturing and Metal Finishing 
and Metal Coating, No. 26 (For Standard Steel Barrel and 
Drum Manufacturing) 

Machinery and Allied Products, No. 8 (For Water Meter Man- 
ufacturing) 

EXECUTIVE ORDERS 

Central Statistical Board, Enumeration of functions 

Codes of Fair Competition, Prohibiting dismissal of employees 
for reporting alleged violations 

Homeworkers, Application of Labor Provisions of Codes to — 
President's Reemploj'ment Agreement, Exception for retail and 

service trades in towns of less than 2,500 population 

Central Statistical Board, Providing Additional funds 

Service Trades or Industries, Partial Suspension of Codes for_ 

ADMINISTRATIVE ORDERS 

Shipbuilding and Shiprepairing, Further exemption from 
maximum hours provisions 

Advertising Distributing Trade, Extension of time for election 
of permanent Code Authority 

Codes of Fair Competition, Rules and regulations concerning 
modifications of and exemptions from approved 

W'ool Textile, Rules of Practice and Merchandising for the Top- 
makers Division 

Millinery, Extension of the expiration date 

•Sheltered Workshops, Providing for the design and use of in- 
signia, specifying pledge to be signed, and appointing Na- 
tional Committee 

Wood Turning and Shaping Industries, Extending time for the 
Clothespin Division to file Prices 

Bulletin No. 7, Providing complaint procedure through "offi- 
ciaU.y authorized" Code Authorities 

(V) 



5- 5-34 



5- 7-34 



5- 9-34 
5- 9-34 
5-10-34 



5-10-34 

5-10-34 

5-14-34 

5-14-34 

5-14-34 
5-15-34 

5-16-34 

5-16-34 
5-1&-34 

5- 4-34 

5-15-34 
5-15-34 

5-15-34 
5-25-34 
5-26-34 



5- 4-34 

5- 5-34 

5- 5-34 

5- 5-34 
5-11-34 

5-11-34 
5-11-34 
5-12-34 



CONTENTS- Continued 



Date 



ADMINISTRATIVE ORDERS— Continued 

Carpet and Rug Manufacturing, Termination of stay relevant 
to credit allowances 

Underwear and Allied Products Manufacturing, Partial termi- 
nation of stay for hours of machine operation 

Advertising Display Installation Trade, Extension of time for 
election of permanent Code Authority 

Government Contracts and contracts involving the use of Gov- 
ernment funds, Exception for contracts negotiated by the 
Immigration and Naturalization Service, U.S. Department 
of Labor 

Government Contracts and contracts involving the use of Gov- 
ernment funds, Exception for movements of government 
freight or personnel 

Government Contracts and contracts involving the use of Gov- 
ernment funds, Defaulted contracts are to be remade on 
original terms 

Government Contracts and contracts involving the use of Gov- 
ernment funds. Exception for American Crane Company 

Government Contracts and contracts involving the use of Gov- 
ernment funds, Exception for cutting and baling of hay pro- 
duced on the reservations at Fort Riley, Kansas, Fort Sill, 
Oklahoma, and Fort Reno, Oklahoma 

Washing and Ironing Machine Manufacturing, Stay of provi- 
sions for price quotations 

American Glassware, Extending time to file recommendations 
as to minimum wage schedules 

Clay Drain Tile Manufacturing, Extension of time for election 
of permanent Code Authority 

Cooperatives, Definition of Farmers' and Consumers' 

Surgical Dressings, Extension of time to present a plan for ad- 
justment of wages above the minimum 

Cotton Textile, Limiting hours of operation of productive ma- 
chinery 

Marble Quarrying and Finishing, Creation of Metropolitan 
District of New York City as a Region 

Cotton Textile, Limiting hours of operation of productive 
machinery 

Retail Food and Grocery Trade, Stay for method of computing 
transportation charges 

Wholesale Food and Grocery Trade, Stay for method of com- 
puting transportation charges 

Business Furniture, Storage Equipment and Filing Supply, 
Stay of provisions applicable to price declines 

Code Administration, Governing collection of expenses of 

Restaurant, Child Labor (Wages and Hours) in non-profit- 
making summer camps 

Index 



5-12-34 
5-14-34 
5-15-34 

5-15-34 

5-15-34 

5-16-34 
5-16-34 

5-16-34 

5-16-34 

5-17-34 

5-17-34 
5-18-34 

5-21-34 

5-22-34 

5-24-34 

5-25-34 

5-25-34 

5-25-34 

5-26-34 
5-26-34 

5-2&-34 



(VI) 



CODES OF FAIR COMPETITION 



Approved Code No. 417 
CODE OF FAIR COMPETITION 

FOR THE 

BATTING AND PADDING INDUSTRY 

As Approved on May 5, 1934 



ORDER 



Code of Fair Competition for the Batting and Padding 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 Batting and Padding Industry, and hear- 
ings having been duly held thereon and the annexed report on said 
Code, containing findings with respect thereto, having been made 
and directed to the President : 

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

Hugh S. Johnson, 
Administrator for Industrial Recovei^, 

Approval recommended : 
H. O. King, 

Division Administrator. 

Washington. D.C, 

May 5, 193^, 

66968° 544-27 34 (1) 



REPORT TO THE PRESIDENT 

The President, 

The 'White House. 

Sir : This is a report on the HearinjT on the Code of Fair 
Competition for the Batting and Padding Industrt, conducted in 
Washington, D.C., on January 30, 1934. 

In accordance Avith 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. 

Tlie Code which is attached, was presented by duly qualified 
and authorized representatives of the Industry, claiming to represent 
80 per cent of the capacity of the Industry. 

GENERAL CHARACTERISTICS OF THE INDUSTRY 

This Industry includes the manufacture of batts and pads used 
in the upholstering of automobile bodies, of furniture, and in the 
manufacture of comforters and mattresses as well as for insulating 
purposes. These products are manufactured principally from cot- 
ton, wool, or other resilient fibres by processing tliem over garnetts 
or cards. 

This Industry which is over 50 j^ears old was originally developed 
for the purpose of manufacturing mattress felts or batts for the 
Mattress Industry. Since that time it has become useful in the 
upholstering of furniture, while now over 50 per cent of the produc- 
tion of cotton batting is used by the Automobile Industry in the 
upholstering of automobile cushions. 

In its processes, this Industry is related to the Dry Goods Cotton 
Batting Industry and to the Wadding Industry, although it is 
larger than the other two, consisting of approximately 65 plants 
throughout the country. 

Because of the resilience of the product it must be packed in 
very loose bales or boxes, thus making storage of the prodaict prac- 
tically impossible. Further, if the product is permitted to stand 
for any length of time, it loses its resilience and becomes compact 
by its own weight. 

The peak periods in the Automobile and Furniture Industries have 
a very definite effect in bringing about peak periods in this Industry. 

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 batting and 
padding also manufacture products which go into the manufacture 
of mattresses. 

Since many of these plants exist in textile centers, the minimum 
wage rate in the northern section of the United States is 321/^0 
per hour while in the southern section it is 300 per hour as estab- 
lished in the Code of Fair Competition for the Cotton Textile 
Industry. 

(2) 



Provisions relative to maximum hours call for a work week of 
40 liours with a maximum of 48 hours permitted for 8 weeks during 
any 6 months period, as a peak period is necessary to the Industry 
in view of the seasonal demand from the Automobile and Furniture 
Industries as described above. 

Because of unfortunate conditions which have existed within the 
Industry during the past few years, it has been found necessary to 
include certain provisions prohibiting the use of second hand ma- 
terials, which has been an upsetting factor throughout the Industry 
for some time. Certain other provisions are included relative to 
Trade Practices within the Industry which it is felt desirable to 
include to aid in stabilizing the Industry. 

FINDINGS 

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

I find that : 

(a) Said Code is well de.signed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act. including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide" for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanctions and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the jDresent 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 
pertinent provisions of said Title of said Act, including without 
limitation Subsection (a) of Section 3. Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof; and that the applicant 
association is an industrial association truly representative of the 
aforesaid Industry; and that said association imposes no inequitable 
restrictions on admission to membership therein. 

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

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

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

For these reasons, the Code has been approved. 
Respectful^, 

Hugh S. Johnson, 

A dministrator. 
May 5. 1934. 



CODE OF FAIE COMPETITION FOR THE BATTING AND 
PADDING 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 Batting and Padding Industry and shall 
be the standard of fair competition for this Industry, and shall be 
binding upon every member thereof. 

Article II — Definitions 

1. The term " Industry " as used herein means and includes the 
manufacture and primary sale of batts and pads, which are used 
primarily by the purchaser to upholster automobile bodies, to uphol- 
ster furniture, and for insulating purposes, as well as in the manu- 
facture of comforters and mattresses, and other products so filled. 
These batts and pads are manufactured principally from cotton, 
wool, or other resilient fibres, or materials, processed over garnett 
machines, cards, or stuffing machines for resale purposes. 

2. The term "Association " as applied to the Industry means the 
Associated Batting Manufacturers of the United States. 

3. The term " Secretary " means the Secretary of the Association. 

4. The term " member of the Industry " includes but without limi- 
tation any individual, partnership, association, corporation or other 
form of enterprise engaged in the Industry 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 compensa- 
tion for liis services, irrespective of the nature or method of payment 
of such compensation. 

G. The term " employer ■' as used herein includes anyone by whom 
any such employee is compensated or emploj-ed in this Industry. 

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

Article III — Hours 

1. No employee shall be permitted to Avork in excess of forty (40) 
hours per week except that for eight (8) weeks during any six (C) 
months' period employees may be permitted to work forty-eight (48) 
hours ])er week. The foregoing provisions do not apply to : 

(a) Outside salesmen, or employees engaged in emergency main- 
tenance or emergency repair work, or persons employed in a mana- 
gerial, supervisory, or executive capacity who earn not less than 
thirty-five ($35.00) per week. 

(4) 



(b) Firemen, engineers, cleaners, tniek drivers, and shipping 
crews who may be permitted a ten per cent (10%) tolerance over the 
hours specified. 

(c) Watclimen who shall not be permitted to work more than 
fifty-six (56) hours a week. 

Article IV — Wages 

1. No employee shall be paid at less than the rate of thirty-two and 
one-half cents (32i/2f^) 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 without 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 pro- 
vided 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 work at a wage below the minimum established by this Code, 
if the employer obtains from the State authority, designated by 
the L^. S. Department of Labor, a certificate authorizing such per- 
son'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 LT. S. Department of Labor in issuing certificates to such per- 
sons. Each employer shall file monthly with the Code Authority 
a list of all STich persons employed by him, showing the wages paid 
to, and the maximum hours of work for such emploj^ee. 

3. 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 otlier basis. 

4. Rates of pay in excess of the minimum hereinbefore prescribed 
shall be equitably adjusted in order to preserve equitable differen- 
tials. All such adjustments made since June 1, 1933, shall be re- 
ported 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 ojjerations or occupations haz- 
ardous in nature or dangerous 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 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 
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) Xo employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to 
refrain from joining, organizing, or assisting a labor organization 
of his own choosing, and 

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

3. Every employer shall provide for the safety and health of 
employees 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 within six months after the effective 
date of this Code. 

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

5. Each employer shall post in conspicuous places fvdl 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 Admin- 
istrator. 

Article VI — Administration 

1. To further effectuate the policies of the Act, a Code Authority 
representing said Industry is hereby constituted to cooperate vvith 
the Administrator in the administration of this Code. 

(a) The Code Authority shall consist of five (5) members, four 
(4) members to be elected by and from the members of the Associa- 
tion, and one (1) to be elected by and from the non-members. The 
method of election shall be approved by the Administrator. 

(b) The Administrator may appoint not more than three (3) 
members 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 "non-member" group to the 
Code Authority is not elected within twenty (20) 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) 
submit to the Administrator true copies of its articles of association, 
by-laws, regulations, and any amendments when made thereto, to- 
gether with sucli 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 
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. 

•i. 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 1 (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. Powers 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 power 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 Cade 
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 co- 
ordination of the Administration of this Code with such other codes, 
if any, as may be related to the Industry. 

(d) Subject to the 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 activ- 
ities of the Code Authority, which amount shall be paid by each 
member of this Industry. 

(e) To obtain from membeVs 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 Author- 
ity, all or any of the persons subject to this Code shall furnish such 
statistical information as the Administrator may deem necessary for 
the purpose recited in Section 3 (a) of the Act to such Federal and 
State agencies as the Administrator may designate; nor shall any- 
thing in any Code relieve any person of existing obligations to 
furnish reports to government agencies. No individual reports shall 
be disclosed to any member of the Industry or any other party except 
to such governmental agencies as may be directed by the Presidents 

(f ) To determine hoAv tare shall be dealt with in selling its prod- 
ucts, subject to the approval of the Administrator. 



8 

(g) To determine the basis of future sales, subject to the approval 
of the Administrator. 

(h) To select a committee to set up standards for products of 
the Industry which shall be the standards for the Industry subject 
to disapproval by the Administrator. 

(i) To present to the Administrator from time to time recom- 
mendations for modification of this Code, based on conditions in 
the Industry' as they may develop, which will tend to effectuate the 
operation of the provisions of this Code. 

(j) To cooperate with the Administrator in regulating the use 
of any National Eecovery 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 Associa- 
tion 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 non-feasance. 

8. If the Administrator shall determine that any action of a Code 
Authority or any agency thereof may be unfair or unjust or contrary 
to the public interest, the Administrator may require that such action 
be suspended to afford an opportunity for investigation of the merits 
of such action and further consideration by such Code Authority 
or agency pending final action which shall not be effective unless the 
Administrator approves or unless he shall fail to disapprove after 
thirty (30) days' notice to him of intention to proceed with such 
action in its original or modified form. 

Article VII — Trade Practices 

1. Within thirty (30) days after the effective date each member of 
the Batting and Padding Industry shall register with the Code 
Authority all garnett machines, cards, or stuffing machines used for 
the manufacture of Batting and Padding for resale, existing in his 
factory, or factories, or on order with manufacturers, or in process 
of being manufactured on January 1, 1934. 

terms 

2. Terms shall not exceed thirty (30) days net from date of in- 
voice, or net twenty-fifth proximo. No cash or trade discount shall 
be allowed, except as provided in Section 7 of Article VIII permit- 
ting reasonable differentials for quantity if fixed at the time of the 
sale. 



Article VIII — Unfair Trade Practices 

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

1. Using of second-hand or previously used cotton in the manu- 
facture of batts. 

■"• Previously used cotton " is defined to mean any cotton which has 
been manufactured and used for the purpose for which it was manu- 
factured, or used for any other purpose. This provision does not 
apply to manchester, burlap or jute bagging, sisal, or to be sterilized 
wool, but prohibits the use of all second-hand material such as might 
be reclaimed from comforters, mattresses, bedding of any kind, old 
"^lUtomobile upholster}^ old upholstered furniture, or the like. 

In every place where batting is made, the owners or their agents 
shall permit their plants (or portion of their plants) to be inspected 
b}' any authorized agent of the Code Authority representative for 
this Industry in order to satisfy the Code Authority that the pro- 
visions of this Section are being complied with. 

2. Malfeasance. — Resorting to an}- methods of sale which will con- 
stitute an evasion or violation of any Trade Practice set forth herein. 

3. Rebates. — Directly offering or making, for the purpose of in- 
fluencing a sale, any payment or allowance of a gift, rebate, refund, 
commission, credit, unearned discount, or excess allowance, whether 
in the form of money or otherwise. Nor shall any member of the 
Industry, for the purpose of influencing a sale, offer or extend to any 
customer any special service or privilege. 

4. False Billing. — Knowingly withholding from or inserting in 
any quotation or invoices any statement that makes it inaccurate in 
any material particular. 

5. Postdating and Predating Quotations. — Postdating and predat- 
ing orders, invoices, statements, or other sales documents. 

G. Repudiating Contracts. — Repudiating contracts by sellers on 
a rising market, or permitting buyers to repudiate on a declining 
market. 

T. Retroactive Quantity Discounts. — Granting a retroactive dis- 
count or rebate based on cumulative quantities purchased over a given 
period. This shall not be construed so as to prohibit reasonable 
differentials for quantity if fixed at the time of the sale. 

8. Soles Contracts. — Making a sales cojitract or purchase contract 
which is not equally binding on both parties regardless of price 
fluctuations. 

9. Trade Acceptances. — Accepting a " Trade Acceptance " or note 
in settlement of any accounts due, unless such acceptance or note 
bears a rate of interest of not less than six percent (6%) per annum 
from the date the invoice is due, provided this is not in conflict with 
any State Law regarding such practice. 

10. Guaranteeing Merchandise. — Guaranteeing m e r c h a n d i s e 
against a decline in price. 

11. Selling a purchaser liis requirements for any given period 
without specifying a definite quantity and a definite price. 



10 

Article IX — Sales Below Cost 

It is hereby declared to be the policy to be followed by all members 
of the Industry to refrain from destructive price cutting. It is 
agreed to be to the best interests of the consumer, the individual 
manufacturer, and also that of his employees, and productive of the 
greatest possible economic recovery for all members of the Industry 
to avoid the destructive economic waste caused by selling below 
cost. 

The Code Authority may adopt, as soon as practicable, either a 
uniform cost accounting system, a reasonable and appropriate sys- 
tem for the interchange of price lists among members of the Indus- 
try, or a system for deti^imining standard mininunn costs. The 
system so adopted shall be binding on all members of the Industry, 
when approved by the Administrator. Onl}^ a violation of such 
approved system shall be basis for complaint to any grievance 
committee under this Article. 

Article X — Modification 

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

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

Article XI 

No provision in this Code shall supersede any State or Federal 
law which imposes on employers more stringent requirements than 
are imposed by this Code. 

Article XII — 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 XIII — 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 by 
any member of the Industry who proposes to make such agreement. 



11 

Article XIV — Effective 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 liecovery Act. 

Approved Code No. 417. 
Registry No. 221-1-02. 

O 



Approved Code No. 418 
CODE OF FAIR COMPETITION 

FOR THE 

COUNTER TYPE ICE-CREAM FREEZER INDUSTRY, 

As Approved on May 5, 1934 



ORDER 



Approm:xg Code of Fair Competition for the Counter Type Icb- 
Cream Freezer 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 Counter Type Ice-Cream Freezer 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: 
A, R, Glancy, 

Division Administrator, 
Washington, D.C, 

May 5, 193J^. 

57211° 544-36 34 (13) 



REPORT TO THE PRESIDENT 

The President, 

Th-e White House. 
Sm: This is a report on the Code of Fair Competition for the 
Counter Type Ice-Cream Freezer Industry, as revised after a public 
hearing conducted in Washington, D.C. on February 20, 1934, in 
accordance with the provisions of the National Industrial Recovery 
Act. 

LABOR PROVISIONS 

This Code provides for a maximum work week of 40 hours except 
for employees on emergency maintenance and emergency repair 
work, and with certain other exceptions. During periods of peak 
demand, employees may be permitted to work 48 hours per week 
in any six weeks in any six months' period. Office employees may 
be permitted to work 48 hours per week, provided that the average 
time worked by such employees, over any period of four weeks, shall 
not exceed 40 hours per week. The limitations in working hours 
shall not apply to persons engaged in executive or supervisory work 
who receive $35.00 per week or more, or to outside salesmen. Watch- 
men shall be permitted to work not in excess of 56 hours per week. 

This Code establishes a minimum rate of pay of forty cents per 
hour, with certain exceptions, regardless of whether the compensa- 
tion is based on a time rate, piece-rate, or other basis. The mini- 
mum rate for office workers shall be $15.00 per week in cities of 
over 500,000 population, with lesser rates in smaller cities, the low- 
est being $14.00 per week. Office boys and girls and learners shall 
be paid not less than 80 per cent of the minimum wage covering the 
class of work in which they are employed, and handicapped persons 
may be employed on light work at a wage below the minimum with 
the sanction of the appropriate State authorities; but the number of 
such employees is limited. Provision is made for an equitable ad- 
justment of wages above the minimum. The rate for hours worked 
overtime shall be one and one-half times the normal rate. Female 
employees performing substantially the same work as male em- 
ployees shall receive the same rate of pay. 

ECONOMIC EFFECT OF THE CODE 

There is great discrepancy between the information shown in the 
application submitted by the Industry in presenting the Code and 
that set forth in the statistical analysis of the Research and Plan- 
ning Division. The former indicates that sales increased from ap- 
proximately $400,000 in 1929 to $2,500,000 in 1933, while the Re- 
search and Planning report lists total sales at $535,000 and $700,000 
for the same periods. Likewise, the employment estimates contained 

(14) 



15 

in the application show an increase from 1,000 employees in 1929 
to 9,000 employees in 1933, while the Research and Planning analysis 
indicates a maximum emplo^'ment for an}' period of not more than 
200 employees. 

The data furni.^hed to tlie Division of Re:>earch and Planning, 
based on questionnaire returns from the Industry, are insufficient to 
indicate the reemploj'ment which might be effected if the present 
volume of business were continued. Based on the percentages of 
the number of wage earners receiving less than the minimum wage 
jH'ovided in the Code, the adoption of the proposed minimum will 
cause an increase in the payrolls of 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 
removal of obstructions to tlie free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practices, by promoting the fullest possi- 
ble utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

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

(c) The Code as approved complies in all respects with the 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 (1)) of Section 10 thereof; and that the applicant asso- 
ciation is an industrial association truly representative of the afore- 
said Industry; and that said association imposes no inequitable 
restrictions on admission to membership therein. 

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

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

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

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

Hugh S. Johnson, 

Admiinistrator. 
May 5, 1934. 



CODE OF FAIR COMPETITION FOR THE COUNTER TYPE 
ICE-CREAM FREEZER 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 Counter Type Ice-Cream Freezer In- 
dustry, 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 " Counter Type Ice-Cream Freezer Indus- 
try " or " Industry " as used herein includes the manufacture for 
sale, the assembly for sale, and/or installation (by the manufac- 
turer or assembler) of all types of Counter Ice-Cream Freezers 
and/or Commercial Freezers of five (5) gallons or less capacity, 
or component parts thereof. 

Section 2. The term " Member of the Industry " or the term 
" employer '* as used herein includes, but without limitation, any 
individual, partnership, association, corporaton, or other form of 
enterprise engaged in the Industry, either as an employer or on 
his or its own behalf. 

Section 3. The term " employee " as used herein includes any and 
all persons engaged in the Industry, however compensated, except 
a Member of the Industry. 

Section 4. The term "Association " as used herein is defined to 
mean the National Association of Counter Freezer Manufacturers. 

Section 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 
Administrator for Industrial Recovery. 

Section 6. " Population " for the purposes of this Code shall be 
determined by reference to the latest Federal Census. 

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 period or more than six (6) days in any seven (7) 
day period, except that: 

(a) The maximum hours fixed herein shall not apply to em- 
ployees on emergenc}' maintenance or emergency repair work, in- 
volving breakdowns or protection of life or property, but, in any 
such special case, at least one and one-half (lYz) times the normal 
rate shall be paid for hours worked in excess of eight (8) hours 

(16) 



17 

in any twenty-four (2-1) hour period, or in excess of forty (40) hours 
in any seven (7) day period. 

(b) The niaxiinuni hours fixed herein shall not apply to employees 
in case of necessity arising from an unusual and temporary burden 
for production or installation as the result of seasonal or peak 
demands, in which special cases such number of hours may be 
worked as are required by the necessities of the situation but not 
to exceed forty-eight (48) hours per week in any six (6) weeks in 
any calendar six (6) months' period; ^orovided, however, that em- 
ployees engaged in such work shall be paid at the rate of at least 
one and one-half (IV2) times the normal rate for hours worked in 
excess of eight (8) hours in any twenty-four (24) hour period or 
in excess of forty (40) hours in any seven (7) clay period. 

(c) Persons employed in clerical or office work shall be permitted 
to work not in excess of forty-eight (48) hours per week or nine 
(9) hours in any twenty-four (24) hours, provided that the average 
time worked by such employees, over any period of four (4) weeks, 
shall not exceed forty (40) hours per week. A normal work clay 
shall not exceed eight (8) hours. 

(d) The maximum hours fixed herein shall not apply to employees 
engaged in executive or supervisory work, who receive thirty-five 
($35.00) dollars or more per week, or to outside salesmen. 

(e) The maximum hours fixed herein shall not apply to employees 
engaged as watchmen who shall be permitted to work not to exceed 
fifty-six (56) hours in any one week except to protect life or prop- 
erty in cases of emergency. In such cases at least one and one-half 
(ll^) times the normal rate of wage shall be paid for hours worked 
in excess of fifty-six (56) hours per week. Watchmen shall be 
permitted to work not in excess of six (6) days in any seven (7) 
day period. 

Section 2. No employer shall knowingly permit any employee 
to work for any time w^hich, when totaled with that already per- 
formed for another employer or employers, in this or any other In- 
dustrv, exceeds the maximum permitted herein. 

Section 3. All over-time arising from emergency work or from 
seasonal or peak demands shall be reported to the Code Authority. 

Article IV — Wages 

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

(a) Learners, for a service period of not to exceed ninety (90) 
days, which shall be served not more than once in the lifetime of 
each learner, shall be paid not less than eighty (80) percent of the 
minimum wage herein established; provided, however, that the 
total number of such learners shall not exceed five (5) percent of the 
total number of employees employed by any Member of the Industry 
in any calendar month. 

(b) Accounting, clerical or office employees shall be paid not less 
than fifteen dollars ($15.00) per week in any city of over five hun- 
dred thousand (500,000) population, or in the immediate trade area 
of such city; nor less than fourteen and one-half dollars ($14.50) 
in any city of between two hundred and fifty thousand (250,000) 
and five hundred thousand (500,000) population, or in the immedi- 



18 

ate trade area of such city; nor less than fourteen dollars ($14.00) 
per week in any other place. 

(c) Office boys and office girls shall be paid not less than eighty 
(80) percent of the above provided minimum wage for accounting, 
clerical, and office employees, provided that the total number of such 
office boys and office girls receiving less than such minimum wage 
shall not exceed in any calendar month five (5) percent of the total 
number of office emploj-ees of the employer, except that any em- 
ployer may employ at least one (1) such person as above provided. 

(d) A person whose earning capacity is limited because of age, 
physical, or mental handicap or other infirmity, may be employed on 
light work at a wage below the minimum established by this Code 
if the employer obtains from the State Authority designated by the 
United States Department of Labor, a certificate authorizing such 
person's employment at such wages and for such hours as shall be 
stated in the certificate. Such Authority shall be guided by the 
instructions of the United States Department of Labor in issuing 
certificates to such persons. Providecf, however, that the total num- 
ber of such employees shall at no time exceed five (5) per cent of 
the total number of employees in the employ of any one Member of 
the Industry, but each Member of the Industry shall be allowed to 
employ at least one (1) such employee. 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 
of such employees. 

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. 

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

Section 4. Employers shall pay all wages in lawful currency or by 
negotiable check therefor, payable on demand. Wages shall be paid 
at least semi-monthly and salaries at least monthly. Wages shall be 
exempt from any payments for pensions, insurance, or sick benefits 
other than those voluntarily paid by tlie employee or required by law. 
The employer shall not accept, directly or indirectlj', any rebates on 
wages or give anything of value or extend any favor to any employee, 
directly or indirectly, for the purpose of influencing the rates oi 
wages, hours, or working conditions of any employee. 

Section 5. An equitable adjustment of all wages above the mini- 
mum rates herein prescribed shall be made by all employers who 
have not heretofore made such adjustments, and all employers shall 
within sixty (60) days after the approval of this Code submit to the 
Code Authority, for transmittal to the Administrator, a report in 
full concerning such adjustments whether made prior to or subse- 
quent to such approval, provided, however, that in no event shall 
hourly or piece work rates of pay be reduced. 

Article V — General Labor Pro\tsions 

Section 1. No person under 16 j-ears of age shall be employed in 
the Industry. No person under 18 years of age shall be employed at 



19 

operations or occupations which are hazardous in nature or danger- 
ous to health. The Code Authority shall submit to the Administra- 
tor, within sixty days after approval of this Code, a list of such 
operations or occupations. In any State an employer shall be deemed 
to have complied with this provision as to age if he shall have on 
file a valid certificate or permit duly signed by the Authority in such 
State empowered to issue employment or age certificates or permits 
showing that the emplo3^ee is of the required age. 

Section 2. In compliance with Section 7 (a) of the Act it is 
pro\-ided : 

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

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

(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 purposes or provisions of the Act or of 
this Code, 

Section 4, Every employer shall make reasonable provisions for 
the safety and health of his employees at the place and during 
the hours of their employment. Standards for safety and health 
shall be submitted by the Code Authority to the Administrator 
within sixty (60) days 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 re- 
quirements as to age of employees, wages, houi's 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 and keep posted copies of this 
Code in conspicuous places easily accessible to employees. Every 
member of the industry shall comply wdth all rules and regulations 
relative to the posting of provisions of Codes of Fair Competition 
which may from time to time be prescribed by the Administrator. 

Article VI — Adihinistratign 

Section 1, Organization amd Constitution. — A Code Authority 
is hereby constituted to cooperate w4th the Administrator in the ad- 
ministration of this Code. 

Section 2. The Code Authority shall consist of Members of the 
Industry, to be selected as follows : 

Three (3) members of the Code Authority shall be elected by 
majority vote of the members of the Association, and two (2) mem- 
bers of the Code Authority shall be elected by majority vote of non- 



20 

members of the Association from among non-members of the Associa- 
tion, if any, eligible to such representation as provided in Section 7 
of this Article. Members of the Code Authority shall be elected to 
serve for a term of one (1) year or until their successors are elected 
at the next annual meetm-g of the Industry. In case, however, the 
non-members of the Association fail to elect either or both of the 
members of the Code Authority allotted to them, the Code Authority 
shall, nevertheless, be authorized to function as such; provided, fur- 
ther, that the said Code Authority shall not consist of less than 
three (3) members or more than five (5). 

Section 3. The Association is hereby designated as the agency to 
conduct the first election of the Industry members of the Code 
Authority, such election to be held within twenty (20) days after 
the effective date of this Code. Thereafter, the elections of members 
of the Code Authority shall be conducted by the Code Authority. 
In the event of any vacancy in the membership of the Code Author- 
ity, a special meeting of the Members of the Industry for an elec- 
tion to fill the vacancy for the incomplete term of such membei 
shall be called. Notice of the time and place of each election shall 
be sent by registered mail to all Members of the Industr}^ at least ten 
(10) days in advance of such election, and voting thereat may be in 
person, or by proxy or letter ballot. Each Member of the Industry 
shall have one (1) vote. 

Section 4. In addition to membership on the Code Authority as 
above provided, there may be not more than three (3) members, 
without vote, to be known as administration members, to be ap- 
pointed by the Administrator to serve for such terms as he may 
specify. Such representatives, together with the Administrator, shall 
be given notice of, and may sit at, all meetings of the Code 
Authority. 

Section 5. Each trade, or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Author- 
ity shall (1) impose no inequitable restrictions on membership, and 
(2) submit to the Administrator true copies of its articles of asso- 
ciation, by-laws, regulations, and any amendments when made there- 
to, together with such other information as to membership, organiza- 
tion, and activities as the Administrator may deem necessary to 
effectuate the purposes of the Act. 

Section 6. In order that the Code Authority shall at all times be 
truly representative of the industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe such 
hearings as he may deem proper; and thereafter if he shall find that 
the Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act, may require an 
appropriate modification in the method of selection of the Code 
Authority. 

Section 7. (a) It being found necessary, in order to support the 
administration of this Code and to maintain the standards of fair 
competition established by this Code and to effectuate the policy of 
the Act, the Code Authority is authorized, subject to the approval 
of the Administrator: 

(1) To incur such reasonable obligations as arc necessary and 
proper for the foregoing purposes and to meet such obligations out 



21 

of funds which may bo raised as hereinafter provided and Avhicli shall 
be held in trust for the purposes of the Code ; 

(2) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary, 
(a) an itemized budizet of its estimated expenses for the foregoing 
purposes, and (b) an equitable basis upon which the funds necessary 
to support such budget shall be contributed by members of the 
Industry ; 

(3) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and secure equitable con- 
tribution as above set forth by all such Members of the Industry, 
and to that end, if necessary, to institute legal proceedings therefor 
in its own name, 

(b) Only Members of the Industry complying w^ith the Code and 
contributing to the expenses of its administration as provided in 
paragraph (a) hereof shall be entitled to participate in the selection 
of the members of the Code Authority or to receive the benefit of its 
voluntary activities or to make use of any emblem or insignia of the 
National Recovery Administration. 

Section 8. Nothing contained in this Code shall constitute the 
Members of the Code Authority partners for any purpose. Nor shall 
an}' member of the Code Authority be liable in any manner to anyone 
for any act of any other member, officer, agent, or employee of the 
Code Authority, Nor shall any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties here- 
under, be liable to anyone for any action or omission to act under 
this Code, except for his own wilful misfeasance or non-feasance. 

Section 9, The Code Authority shall have the following further 
powers and duties : 

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

(b) To adopt by-laws and rules and regulations for its own pro- 
cedure 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. In 
addition to information required to be submitted to the Code 
Authority, members of the industry subject to this Code shall fur- 
nish such statistical information as the administrator ma}- deem 
necessary for the purposes recited in Section 3 (a) of the Act to 
such Federal and State agencies as he may designate ; provided that 
nothing in this Code shall relieve any Member of the Industry of 
any existing obligations to furnish reports to any government 
agency. No individual reports shall be disclosed to any other Mem- 
ber of the Industry or any other party except to such governmental 
agencies as may be directed by the Administrator. 

(d) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein, pro\dded 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. 



22 

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

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

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

(h) To recommend to the Administrator further fair trade prac- 
tice provisions to govern Members of the Industry in their relations 
with each other or with other industries and to recommend to the 
Administrator measures for industrial planning, including stabili- 
zation of employment. 

(i) 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 
Administrator as amendments to this Code and such other codes. 

Section 10. If the Administrator shall determine that any action 
of the Code Authority or any agency thereof may be unfair or 
unjust or contrary to the public interest, the Administrator may 
require that such action be suspended to afford an opportunity for 
investigation of the merits of such action and further consideration 
by the Code Authority or agency pending final action which shall 
not be effective unless the Administrator approves or unless he shall 
fail to disapprove after thirty days' notices to him of intention to 
proceed with such action in its original or modified form. 

Article VII — Trade Practice Kules 

For all purposes of the Code, the acts described in this Article shall 
constitute unfair practices, and any Member of the Industry who 
shall directly or indirectly, through any officer, agent, or representa- 
tive knowingly use, employ, or permit to be used or employed any of 
such unfair practices shall be guilty of a violation of the Code. 

Rule 1. Selling Below Cost. — The selling by any Member of the 
Industry of any commodity at a price below his own individual cost ; 
provided, however, that any Member of the Industry may meet the 
price competition of any competitor whose costs under the Code are 
lower. 

(a) The Code Authority shall cause to be formulated an account- 
ing system and methods of cost finding and/or estimating capable of 
use by all Members of the Industry. After such system and methods 
have been formulated and approved by the Administrator, full 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 system and methods. 

(b) When the Code Authority determines that an emergency exists 
in this Industry and that the cause thereof is destructive price- 
cutting i:jjich as to render ineffective or seriously endanger the mainte- 



23 

nance of the provisions of this Code, the Code Aiitliority 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 practice for any 
Member of the Industry to sell or offer to sell any products of the 
Industr}^ 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 prod- 
ucts. When it appears that conditions have changed, the Code Au- 
thority, upon its own initiative or upon the request of any interested 
party, shall cause the determination to be reviewed. 

(c) Notwithstanding the provisions of Rule 1 above, obsolete pat- 
terns, discontinued models, repossessed or surplus stock may be sold 
at such prices as are necessary to effect a sale, subject, however, to 
rules established or modified from time to time by the Code Author- 
ity. All such sales must be reported in advance, if possible, to the 
Code Authority. Any sale made under the provisions of this para- 
graph for the purpose of evading Rule 1 of this Article is an unfair 
method of competition. 

RuiiE 2. Misrepresentatwn. — The intentional misrepresentation. 
or the making, or causing, or permitting to be made or published, oi 
any false, misleading, or deceptive statements by way of adver- 
tising, invoice, or otherwise, concerning the size, quantity, quality, 
or character, or nature of, any product of the Industry, bought or 
sold. 

Rule 3. False Billing. — Withholding from or inserting in any 
invoice words or figures which make or tend to make such invoice a 
false record, wholly or in part, of the transaction represented on the 
face thereof ; and the secret payment or allowance of rebates, refunds, 
credits or unearned discounts, whether in the form of money or 
otherwise. 

Rtjle 4. Misleading Statements. — The making of, or causing or 
permitting to be made, any false or deceptive statements, either writ- 
ten or oral, concerning installations or sales previously made, or the 
claiming by any Member of the Industry that equipment actually 
supplied and installed by others was supplied and installed by him, 
or the making of any misleading or deceptive statements in regard 
thereto. 

Rule 5. Imitation of Trade Marks. — Imitating or simulating the 
trade mark, trade name, package, wrapper, slogan, label, or other 
marks of identification of a competitor or his product to such a de- 
gree as to have the tendency and capacity to mislead or deceive pur- 
chasers or prospective purchasers. 

Rule 6. Inducing Breach of Contracts. — Inducing or attempting! 
to induce by any means or device whatsoever a breach of contract 
between a customer and a competitor during the term of such a 
contract. 

Rule 7. Securing Information from Competitors. — Securing in- 
formation from competitors concerning their business by false or 
misleading statements or representations, or by false impersonation 



24 

of one in authority, and the wrongful use thereof unduly to hinder or 
stifle the business or competition of such competitors. 

RutE 8. G 07isignme7it of Unordered Eqidprnent. — The consigning 
of unordered counter type freezer equipment, accessories or parts to 
any person, firm, corporation or other form of enterprize, and the 
forwarding of such products when not actually sold on a bona fide 
purchase contract or leased on a bona fide lease or rental agreement. 

Rule 9. Terms of Sale. — Terms of sale shall be definite and shall 
be plainly set out in the purchase contract, and no Member of the 
Industry shall solicit for, or accept purchase contracts without a 
minimum fixed down payment, and, in the case of deferred payment 
plan, without a minimum fixed monthly payment. 

Rule 10. C ommercial Brihery. — No ISIember of the Industry shall 
give, permit to be given, or directly offer to give, anji:hing 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 emploj^er, prin- 
cipal or party. Commercial bribery provisions shall not be construed 
to prohibit free and general distribution of articles commonly used 
for advertising except so far as such articles are actually used for 
commercial bribery as hereinabove defined. 

Rule 11. Behates.— No Member of the Industry or its agent shall 
secretly offer or make any payment or allowance of a rebate, refund, 
commission, credit, unearned discount, or excess allowance, whether 
in the form of money or otherwise, for the purpose of influencing a 
sale, nor shall a member secretly extend to any customer any special 
service or privilege not extended to all customers of the same class. 

Rule 12. Combined Quotations. — No member of the Industry shall 
combine any quotation for any product of this Industry with any 
quotation for any other material, product, labor, or ser\ace, for 
the purpose and with the intent of concealing the true selling price 
of the products of this Industry. 

Article VIII — Modification 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of subsection (b) of Section 10 of the National Industrial 
Recovery Act, from time to time to cancel or modify any order, ap- 
proval, license, rule, or regulation issued under Title I of the said 
Act and specifically, but without limitation, to the right of the Presi- 
dent 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 
become effective on approval of the Administrator. Any such appli- 
cation may be made by the Code Authority. 



25 

Article IX — Notification 

Any notice, demand, or request required or permitted to be given 
to or made upon any member of the Industry shall be sufficiently 
given or made if mailed, postage prepaid, addressed to such member 
at his or its address on file with the Code Authority. A waiver in 
writing, signetl b}^ any Member of the Industry of any such notice, 
demand, or request delivered to the Code Authority, shall be deemed 
to be the equivalent of a notice, demand, or request duly given or 
made. 

Article X — Jurisdiction 

If any employer of labor in this Industry is also an employer in 
any other industry, the provisions of this Code shall apply to and 
ali'ect onh^ that part of his business which is a part of the Counter 
Type Ice-Cream Freezer Industry. 

Article XI — Export Trade 

No provisions of this Code relating to prices or terms of selling, 
shipping, or marketing, shall apply to export trade or sales or ship- 
ments for export trade. 

Article XII — 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 XIII — Price Increases 

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

Article XIV — Effective Date 

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



Approved Code No. 418. 
Registry No. 1328-04. 



o 



Approved Code No. 419 

CODE OF FAIR COMPETITION 

FOR THE 

SOFT LIME ROCK INDUSTRY 

As Approved on May 7, 1934 



ORDER 



AppRO^^:NG Code of Fair Competitiox for the Soft Lime Rock 

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 Lime Rock 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; provided, however, that 
the provisions of Article VIII, (Section 3) insofar as they prescribe 
a waiting period between the filing with the Code Authority and the 
efi'ective date of price lists, as originally filed and/or revised price 
lists or revised terms and conditions of sale, be and they are hereby 
stayed pending my further Order; and provided further, that the 
Code Authority shall not later than ninety days after the date of 
this Order, submit to the Administrator further evidence that the 
averaging of hours as provided in Section 1 of Article III is necessary 
in this Industry. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
A. R. Glanct, 

Division Administrator, 

Washington, D.C, 

May 7, 193^. 

57412°— 544-45 34 (27) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Soft Lime Rock Industry, a hearing on which was conducted in 
Washington on the second of November, 1933, in accordance with 
the provisions of the National Industrial Recovery Act. 

PRO\r[SIONS or THE CODE AS TO WAGES AND HOURS 

TIlis Code provides for a maximum work week of forty hours as 
averaged over any three months period, forty-eight hours in any 
one week, eight hours in any one day and six daj's in any seven-day 
period. For all time worked in excess of eight hours per day or 
forty hours per week, payment is to be made at the rate of not less 
than one and one-half times the normal rate of pay. Exceptions 
to the maximum working limits above are provided for outside sales- 
men; executives, supervisors, or technical assistants receiving not 
less than $35.00 per week ; watchmen, who may work fifty-six hours 
per week; employees engaged in emergency maintenance or repair 
work, who receive overtime for all time in excess of the above pre- 
scribed limits ; and clerical employees, who are limited to forty hours 
per week, eight hours per day and six days per week. 

This Code provides for minimum hourly rates of pay of 40 cents 
in the North, 30 cents in the intermediate zone, and 25 cents in the 
South, regardless of whether an employee is compensated on a time 
rate, piecework, or other basis. A provision is made for the read- 
justment of compensation for employment now in excess of the 
minimum wages prescribed. Clerical and office employees are to be 
paid at not less than at the rate of $14.00 per week in the South, and 
$15.00 per week elsewhere. 

No person under sixteen years of age may be employed, and no 
person under eighteen years of age may work at hazardous or un- 
healthy occupations. Provisions are included for posting of the 
Code, for the health and safety of employees, for handicapped per- 
sons, as well as other provisions for the general welfare of 
employees. 

ECONOMIC EFFECTS OF THE CODE 

As reported by the Southeastern Soft Lime Rock Association, the 
1933 shipments of the products of this Industry have decreased 
about 57 percent below that in 1931. Accordingly, serious competi- 
tion has existed with the result that ruinous price-cutting has been 
practiced. By reason of the provision in this Code prohibiting un- 
fair trade practices, and the provisions relating to selling below 
cost and price publication, it is believed that the price structure 

(28) 



29 

within the Industry will be materially stabilized by reason of the 
approval of this Code. 

Tlie Monibers of this Industry are located entirely in the South- 
eastern Gulf and Atlantic States, and are engaged in quarrying and 
crushing a t3'pe of lime rock obtained and used commercially only 
in this area. The minimum wage paid prior to October, 1933, at 
which time Codal rates became effective by agreement between Mem- 
bers of the Industry, had been 10 cents per hour, and it had been 
customar}' to work 10 hours per day and 6 days per week, whenever 
business demanded and weather permitted such operations. The 
Codal minimum rate for the area affected, will represent an increase 
of about 150 ]:iercent over the minimum rate prior to the 1933 Codal 
agreement. The average earnings prior to this date were about 18 
cents per hour, while the average since has been about 33 cents per 
hour, as based on best available data. "With any reasonable volume 
of business, it is estimated that the average weekly earnings, in spite 
of shorter working time, will far exceed those for any recent previous 
3'ear, including the year 1929. 

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

(b) Said Industry normally employs not more than 50,000 em- 
ployees: and is not classified by me as a major industr5^ 

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

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

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



30 

(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. 
EespectfuUy, 

Hugh S. Johnson, 

A dminis t rat or. 
IVIay 7, 1934. 



CODE OF FAIE COMPETITION FOE THE SOFT LIME 
EOCK INDUSTEY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Eecovery Act, the following provisions are established as a Code of 
Fair Competition for the Soft Lime Eock Industry and shall be 
the standard of fair competition for such Industry and shall be 
binding on every member thereof. 

Article II — Definitions 

Section 1. Industry. — The term " Industry " as used herein in- 
cludes the quarrying and/or crushing and/or sale of soft lime rock 
as herein defined. 

Section 2. The term " soft lime rock " as used herein means a soft 
porous limestone which breaks and crushes readily when freshly 
quarried, and when applied in crushed form as a road base has the 
property of packing into a firm cemented mass resistant to wear 
and water; such rock containing more than 80% of calcium car- 
bonate and having properties comparable to the material termed 
" Ocala Limestone." 

Section 3. Memher of the Industry. — The term " ISIember of the 
Industry " as used herein includes anyone included in the Industry, 
as above defined, either as an employer or on his own behalf. 

Section 4. Emjdoyee. — The term " employee " as used herein in- 
cludes anyone engaged in the Industry in any capacity receiving 
compensation for his or her services, irrespective of the nature or 
method of payment of such compensation, except a Member of the 
Industry. 

Section 5. Em.jjloyer. — The term " employer " as used herein in- 
cludes anyone by whom any such employee is compensated or 
employed. 

Section 6. President^ Act and Administrator. — The terms " Presi- 
dent ■', "Act " and "Administrator " as used herein shall mean re- 
spectively, the President of the United States, Title I of the National 
Industrial Eecovery Act, and the Administrator for Industrial 
Eecovery. 

Section 7. Association. — The term "Association " as used herein 
means the Southeastern Soft Lime Eock Association. 

Article III 

Section 1. Except as hereinafter provided, no employee shall be 
permitted to work for more than eight (8) hours in any one day nor 
more than forty (40) hours per week as averaged over any three 

(31) 



32 

(3) months' period, nor more than forty -eight (48) hours in any 
one week; nor more than six (6) daj^s in any seven (7) day period; 
provided, however, that over-time rates of at least one and one-half 
(11/2 ) times the normal rate shall be paid for all hours worked in 
excess of eight (8) per day or forty (40) per week.^ 

Section 2. Exceptions. — The maximum houi^ specified in Section 
1 of this Article shall not apply to the following: 

(a) Outside salesmen; nor to Executives, Supervisors or technical 
assistants who receive regularly not less than $35.00 per week. 

(b) Watchmen, who may be j^ermitted to work not over fifty-six 
(56) hours in any one week. 

(c) Employees engaged in 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 (IV^) times 
their normal rate shall be paid for all time worked in excess of the 
maximum hours established in Section 1 of this Article. 

(d) Employees engaged in clerical or office work, provided the 
total working hours of such employees shall not exceed forty (40) 
hours in any one week nor eight (8) hours in any one day nor six 
(6) days in any one week. 

Section 3. Emploj^ers who personally perform manual work or 
are engaged in mechanical operations shall be subject to the same 
limitations on working time provided in this Article as to employees. 

Section 4. No employer shall knowingly permit any employee to 
work for any time which, when totaled with that already performed 
with any other employer or employers, exceeds the maximum per- 
mitted herein. 

Aritcle IV — Wages 

Section 1. No employee shall be paid at less than at the hourly 
rates specified in the following schedule. This minimum wage 
shall apply to common labor or unskilled labor. 

(a) Alabama, Florida, Georgia, Mississippi, South Carolina; — 
twenty-five (25^) cents. 

(b) Arizona, Arkansas, Kentucky, Louisiana, New Mexico, North 
Carolina, Oklahoma, Tennessee, Texas, Virginia; — thirty (300) 
cents. 

(c) All that territory not included in sub-sections (a) and (b) 
of this section; — forty (40^) cents. 

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

Section 3. Wages shall be paid at least twice a month not other- 
wise than in lawful money or by negotiable check therefor payable 
on demand. This Article establishes rates of pay which shall be 
exempt from any charge, fines, or deductions by the employer other 
than those voluntarily agreed to by the employee, or required by law. 

Section 4. Employers shall not reduce the compensation for em- 
ployment now in excess of the minimum wages herein established 
(notwithstanding that the hours worked in such employment may bo 
hereby reduced) and shall increase the pay for such employment 

^ See paragraph 2 of order approving this Code. 



33 

by an equitable readjustment of all pay schedules. Each Member 
of the Industry shall, within sixty (60) days after the effective 
date of this Code, report on such readjustments to the Administrator. 
Section 5. Employees engaged in clerical or office work shall be 
paid at not less than at the rate of $15.00 per week, except tliat in the 
states specified in Section 1 (a) of Article IV, such employees shall 
be paid at not less than at the rate of $14.00 per week. 

Article V — General Labor Provisions 

Section 1. Xo person under sixteen (16) years of age shall be 
employed in the Industry; nor anyone imder eighteen (18) years of 
age at operations or occupations hazardous in nature or detrimental 
to health. The Code Authority as hereinafter established shall sub- 
mit to the Administrator not later than thirty (30) days after the 
effective date, a list of such occupations. In any State an employer 
shall be deemed to have complied with this provision if he shall have 
on file a certificate or permit duly issued by the authority in such 
Stat€ empowered to issue employment or age certificates or permits 
showing that the employee is of the required age. 

Section 2. (a) Employees shall have the right to organize and 
bargain collectively through representatives of their own choosing, 
and shall be free from the interference, restraint, or coersion of em- 
ployers of labor, or their agents, in the designation of such represent- 
atives 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. (a) 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, or fire protection or general working conditions than 
prescribed in this Code. 

(b) 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. 

(c) Each Member of the Industry shall post copies of the pro- 
visions of this Code in accordance with the rules and regulations as 
may be fi'om time to time prescribed by the Administrator. 

(d) Each employer shall provide for the health and safety of his 
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 this Code. 

Section 4. 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 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. 

Section 5. No emploj^ee shall be required, as a condition of 
employment, to trade at a store owned or specified by an employer. 

Section 6. Employees, other than maintenance or supervisory men, 
or those necessary to protect property, shall not be required, as a 
condition of employment, to live in houses rented from or specified 
by their emploj^ers. 

Article VI — Administration 

Section 1. Code Authority. — A Code Authority is hereby estab- 
lished for the administration of this Code. 

Section 2. Membership. — The Code Authority shall consist of the 
Executive Committee of the Association, as this Committee is from 
time to time constituted; and, if deemed necessary by the Admin- 
istrator, not more than two (2) additional Members of the Industry, 
not Members of the Association, who shall be elected on a fair basis 
by the Members of the Industry ; and, in addition shall include from 
one to three members without vote to be appointed by the Admin- 
istrator. The Members appointed by the Administrator shall be 
without vote and shall be given notice of and may sit at all meetings 
of the Code Authority. Similar notice of meetings of the Code 
Authority shall also be given to the Administrator. 

Section 3. Each trade or industrial association directly or in- 
directly participating in the selection or activities of the Code 
Authority shall (1) impose no inequitable restrictions on member- 
ship, and (2) submit to the Administrator true copies of its articles 
of association, by-laws, regulations, and any amendments when made 
thereto, together with such other information as to membership, 
organization, and activities as the Administrator may deem necessary 
to effectuate the purposes of the Act. 

Section 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 pro\dde 
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. 

Section 5. The Code Authority shall be the general planning and 
coordinating agency for the Industry. It shall have the powers and 
duties as provided herein, and in addition thereto, it shall 

(a) Upon complaint of interested parties or on its own initiative, 
make such inquiries and investigation into the operation of the 
Code as may be necessary, subject to such rules and regulations as 
the Administrator may prescribe. 

(b) Subject to such rules and regulations as the Administrator 
may prescribe to elect such officers and make such rules and regula- 



35 

tions as are necessary for the administration of this Code, including 
the appointment of such sub-committees and agencies as are required 
to properly effectuate the purposes of the Code, provided, however, 
that the Code Authority shall not be relieved of its responsibility, 
and that such sub-conunittees or agencies shall comply with all 
applicable provisions of this Code. 

(c) To obtain from ^Members of the Industry such information 
and reports as are required for the administration of the Code and 
to provide for submission by Members of such information and 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 govern- 
ment agencies as the Administrator maj' designate; provided, how- 
ever, that nothing in this Code shall relieve any Member of the In- 
dustry of any existing obligations to furnish reports to any govern- 
ment agenc}'. Xo individual reports shall be disclosed to any other 
Member of the Industry or any other party except to such govern- 
mental agencies as may be directed by the Administrator. 

(d) To cooperate with the Administrator in regulating the use 
of an}' National Recovery Administration insignia solely by those 
Members of the Industry who have as&ented to, and are complying 
with, this Code. 

(e) To appoint a trade practice committee which may 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 emploj-ers 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. 

Sectiox G. If the Administrator shall determine that any action 
of the Code Authority or am^ 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 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 da3's notice to him of intention to proceed 
with such action in its original or modified form. 

Section 7. Only those Members of the Industry who assent to 
and comply with the requirements of this Code and sustain their 
reasonable share of the expenses of its administration shall be enti- 
tled to participate in and share the benefits of the activities of the 
Code Authority and to participate in the selection of the members 
thereof, and to use the National Recovery Administration Code in- 
signia. A reasonable share of the expenses of administration shall 
be determined by the Code Authority, on the basis of volume of 
business and/or such other factors as may be deemed equitable to be 
taken into consideration. 

Article VII — Trade Practices 

UNFAIR TRADE PRACTICES 

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



36 

Section 1. Secret Rebates. — To make secret prepayment of trans- 
portation charges or permit the payment or allowance of secret 
rebates, refunds, credits, or unearned discounts, whether in the form 
of money or otherwise, or extending to certain purchasers special 
services or privileges not extended to all purchasers of the same 
class under like terms and conditions. 

Section 2. Contract Interfereyice. — To interfere wilfully with any- 
one by any means or device whatsoever, in any existing contract be- 
tween a seller and a purchaser in or concerning the production, manu- 
facture, transportation, purchase, or sale of any industry product or 
the performance of any contractual duty or service connected there- 
with, with the intent and/or effect of thereby destroying or appro- 
priating in whole or in part the property or business of another 
engaged in the industry governed by this Code. 

Section 3. LumpSyni Bidding. — To sell any industry product 
except on a unit-price basis. 

Section 4. C ontingent Selling. — To enter into any agreement for 
furnishing any industry product contingent upon the sale or pur- 
chase of any other product or service or other contingency not ap- 
pearing in the contract. 

Section 5. To quote prices on Industry products, or to sell, or to 
offer same for sale, without having complied with Article VIII of 
this Code. 

Section 6. C OTrvmercidi Bribery. — No Member of the Industry 
shall give, permit to be given, or directly offer to give, anything of 
value for the purpose of influencing or rewarding the action of any 
employee, agent, or representative of another in relation to the busi- 
ness of the employer of such employee, the principal of such agent or 
the represented party, without the knowledge of such employer, prin- 
cipal, or part)^ 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. 

Article VIII 

Section 1. The Code Authority shall cause to be formulated an 
accounting system and methods of cost finding and/or estimating 
capable of use by all Members of the Industry. After such system 
and methods have been formulated, full details concerning them shall 
be made available to all Members, as shall full details of all changes 
therein as and when made. Before becoming effective the cost system 
and methods of cost finding and estimating and all changes therein 
shall be filed with the Administrator for his approval. After full 
details concerning such system and methods have been made avail- 
able to all Members of the Industry, and thereafter, all Members 
shall determine and/or estimate costs in accordance with the prin- 
ciples of such methods. 

Section 2. No Member of the Industry shall sell any industry 
product at less than his own cost except to meet the competition of 
another Member of the Industry whose costs under this Code are 
lower. Cost for the purpose of this Section shall include all cost 
as developed by the uniform cost accounting system provided in Sec- 
tion 1, except interest on indebtedness, interest on investment, 
depreciation on unused facilities and account losses. 



37 

Section 3. (a) Within ten (10) days after the effective date of 
this Code, each Member of the Industry shall file with the Code 
Authority all prices, terms, and conditions of sale for industry prod- 
ucts, which shall be f.o.b. plant, and such prices, terms, and condi- 
tions of sale shall be effective within five (5) days after the date 
of filing. Eevised prices, terms and conditions of sale may be filed 
to become effective five (5) days after the date of filing. The Code 
Authority shall immediately cause copies of all such prices, terms, 
and conditions of sale filed with it, together with any revised prices, 
terms and conditions of sale, to be distributed among Members of 
the Industr}^ and such copies shall be made available for public 
information. 

(b) No provision contained herein shall be construed as prevent- 
ing an}' Member of the Industry from meeting as of their effective 
date, the prices, terms and conditions of sale filed as hereinabove 
provided by any other Member of the Industry. 

(c) Except as provided in the foregoing sub-section (b), no Mem- 
ber of the Industry shall sell or offer for sale any industry products 
on more favorable terms to the purchaser than as contained in the 
lists of prices, terms and conditions of sale filed and in effect as here- 
inabove provided.^ 

Article IX — Uniform Sales and Credit Practices 

The Code Authority may establish uniform sales and credit prac- 
tices for this Industry and after approval by the Administrator such 
practices shall be binding upon all Members of the Industry and a 
violation of such practices shall constitute a violation of this Code. 

Article X 

The Code Authority may obtain information from all Members 
of the Industry to enable it to ascertain the existing and i)otential 
productive capacity of the Industry. Any Member of the Industry 
shall inform the Code Authority of his intention to install additional 
plant capacity or to move an existing plant from one producing area 
to another. Such Member shall, upon request, be entitled to obtain 
from the Code Authority the available information mentioned in the 
first sentence of this section. The Code Authority may also make 
such recommendations to the Administrator as it may deem fit for 
the purposes of effectuating the policies of the Act or for admin- 
istering the provisions of this Code. 

Article XI — Modification and Amendment 

Section 1. Statutory Provisions. — Tliis Code and all the provi- 
sions hereof are made subject to the right of the President, under 
sub-section (b) of Section 10 of the National Industrial Eecovery 
Act, from time to time to cancel or modify any order, approval, 
license, rule, or regulation issued under Title I of said Act and spe- 
cifically, but without limitation, to the right of the President to 
cancel or modify his approval of this Code or any conditions 
imposed by him upon his approval thereof. 

* See paragraph 2 of order approving this Code. 



Section 2. Aviendtncnts. — The Code Authority may from time to 
time propose amendments to this Code to the Administrator; and 
this Cede, except as to provisions required by the Act, may be modi- 
fied on the basis of experience or changes in circumstances, such 
modification to be based upon application to the Administrator 
after such notice and hearing as he may specify, and to become 
effective on approval of the Administrator. 

Article XII — 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 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 — Effective Date 

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



Approved Code No. 419. 
Registry No. 1026-02. 



o 



Approved Code No. 420 
CODE OF FAIR COMPETITION 

FOR THE 

GYPSUM INDUSTRY 

As Approved on May 7, 1934 



ORDER 



AppRO\^xG Code of Fair Competition for the Gypsum 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 Gypsum Industry, and hearings having 
been duly held thereon and the annexed report on said Code, contain- 
ing findings with respect thereto, having been made and directed to 
the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order number 6543-A, dated Decem- 
ber 30, 1933, and otherwise, do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the i^ertinent provisions and will promote the policy and pur- 
poses of said Title of said Act; and do hereby order that said Code 
of Fa.ir Competition be and it is hereby approved; provided, how- 
ever, that the provisions of Article VI, Sections 1 and 2, insofar as 
they prescribe a waiting period between the filing with the Code 
Authority and the effective date of revised price lists or schedules 
and/or terms and conditions of sale, be and they are hereby stayed 
Ijending 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 provided further, that the Code 
Authority shall, not later than ninety days after the date of this 
Order, submit to the Administrator further evidence that the averag- 
ing of hours as provided in Section 1 of Article III is necessary in 
this Industry. 

Hugh S. Johnson, 
Administrator for Industrial Recove)^. 

Approval recommended : 
A. R. Glancy, 

Division Adininistrator. 

Washington, D.C, 

May 7, 193Jf. 

57414' 544-13 34 (39) 



REPOKT TO THE PEESIDENT 

The President, 

The 'White House. 
Sir: This is a report on the Code of Fair Competition for the 
Gypsum Industry, a hearing on which was conducted in Washing- 
ton on the ninth of Januar}^, 1934, in accordance with the provisions 
of the National Industrial Recovery Act. 

HOURS 

This Code provides for a maximum work week of forty (40) hours, 
except that, during peak production periods and emergencies, em- 
plo3^ees may be permitted to work forty-eight (48) hours in any week 
provided that their hours of work do not average more than forty 
(40) hours per week during a six month period. It provides for 
the payment of one and one-naif (1%) times the norm^al rate for time 
worked in excess of eight (8) hours in any day. The following are 
excepted : 

(a) Clerical, office, sales service and sales employees, who may be 
permitted to work not more than an average of lorty (40) hours per 
week in any thirty (30) day period, nor more than forty-eight (48) 
hours in any week ; 

(b) Employees in technical, professional, supervisory, managerial 
or executive capacities, receiving more than thirty-five dollars 
($35.00) per week, and outside sales and sales service employees; 

(c) Employees on emergency maintenance or emergency repair 
work who. however, must be paid one and one-half (1^/4) times the 
normal rate for time worked in excess of forty (40) hours in any 
week or eight (8) hours in any day; 

(d) Watchmen, who may be permitted to work a maximum of 
fifty-six (56) hours in any week; 

(e) Engineers, firemen and pumpmen, who may be permitted to 
work a maximum of forty-eight (48) hours in any week. 

WAGES 

The Code provides for minimum wage rates for clerical, office, 
sales service and sales employees of from fourteen dollars ($14.00) 
to fifteen dollars ($15.00) per week (depending upon the size of the 
city within the trade area of which they are employed), and for 
minimum wage rates for other employees as follows : 

(a) Forty cents (400) per hour in any city, wherever located, of 
100.000 population or over or in the immediate trade area of such 
city; 

(b) Forty cents (40^) per hour in the Pacific Coast Territory; 

(c) Thirtj' cents (30c) per hour in the South; 

(d) Thirty-seven and one-half cents (37i/^^) per hour in the 
remainder of the United States. 

(40) 



41 

The rates of wages of emplo3^ees, receiving more than the minimum 
but not more than thirty-five dollars ($35.00) per week, may not be 
reduced, and must be increased by an equitable readjustment, pro- 
vided this has not already been done prior to the ell'ective date of 
the Code. 

OTHER r^iBOR PROVISIONS 

The Code contains provisions, similar to those usually included in 
Codes, governing Child Labor, Infirm and Aged Employees, Re- 
classification of Employees, Posting of Code, Payment of Wages, 
Safety and Health, and Company Houses and Stores. 

ECONOMIC EFTECTS OF THE CODE 

The volume of sales in this industry has decreased about 75% since 
1929. During the same period, tne number of employees has 
decreased from 7,016 to 3,251, a decrease of about 54%. 

Practically the entire industry is now operating under the Presi- 
dent's Reemployment Agreement and it is not thought that th/i 
approval of the Code will increase employment or payrolls further, 
until volume of business increases. The increase in payrolls under 
the President's Reemployment Agreement has apparently been 
about 20% and the increase in employment probably at least 8%. 

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 super- 
vision, by eliminating unfair competitive practices, by promoting 
the fullest possible utilization of the present productive capacity 
of industries, by avoiding undue restriction of production (except 
as may be temporarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemployment, by improving 
standards of labor, and by otherwise rehabilitating industry. 

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

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof; and that the applicant 
group is an industrial group truly representative of the aforesaid 



42 

industry, and that said ^onp imposes no inequitable restrictions 
on admission to membership therein. 

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

(e) The Code is not designed to and will not eliminate or oppress 
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. 
May 7, 1934. 



CODE OF FAIR COMPETITION FOR THE GYPSUM 

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 gypsum industry and shall be the stand- 
ards of fair competition for this industry, and shall be binding upon 
every member thereof. 

Article II — Definitions 

Section 1. The terms " gypsum industry " and " industry " as used 
herein mean and include the mining and calcining or calcining of 
g3-psum, mining, quarrying or recovering natural or synthetic gyp- 
sum or gj'psite and/or crushing gypsum rock or gypsite and/or man- 
ufacturing natural or synthetic gypsum and gypsite products, within 
the United States and its territories and possessions. 

Section 2. The term " employee " as used herein includes any per- 
son, except a member of the industry, engaged in any phase of the 
industry in any capacity in the nature of employee irrespective of 
the method of payment of his compensation. 

Section 3. The"^ term " employer " as used herein includes any one 
by whom an employee is compensated or employed. 

"^ Section 4. The term "member of the. industry " includes, but 
without limitation, any individual, partnership, association, corpora- 
tion or other form of enterprise engaged in the industry, either as 
an employer or on his or its own behalf. 

Section 5. The term " Pacific Coast Territory " as used herein 
shall mean that part of the continental United States west of the 
108th longitudinal meridian. 

Section 6. The term "Association *' as used herein shall mean the 
Gypsum Association, a trade association having its office at 211 West 
"Wacker Drive, Chicago, Illinois. 

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

Section 8. The term "population" as used herein shall mean 
population as determined by the latest Federal Census. 

Article III — Labor 

Section 1. Hours. — No employee not elsewhere in this section 
otherwise specifically provided for or excepted shall be permitted to 
work in excess of forty (40) hours in any week except that, during 
peak production periods and emergencies, any such employee may 

(43) 



44 

be permitted to work in excess of such hours but not to exceed forty- 
eight (48) hours in any Tveek; provided, however, that the hours of 
labor for any such employee shall not average more than forty 
(40) hours per week during each six month period from January 1 
to June 30, and from July 1 to December 31 in any year. Employees 
covered by this paragraph shall be paid one and one-half (IV^) 
times their normal rate for all hours worked in excess of eight (8) 
hours in any day. 

No clerical, office, sales service or sales employee shall be permitted 
to work an average of more than forty (40) hours per week in any 
thirty (30) day period, provided that no such employee shall be 
permitted to work more than forty-eight (48) hours in any one week. 

The above limitations shall not apply to : 

(a) Employees in a technical, professional, supervisory, mana- 
gerial, or executive capacity who are compensated on a basis of more 
than $35.00 per week; 

(b) Emplo3^ees on emergency maintenance or emergency repair 
work involving breakdowns or the protection of life or property but 
in any such case at least one and one-half (II/2) times the normal 
rate shall be paid for hours worked in excess of forty (40) hours in 
any week, or eight (8) hours in any day; 

(c) Outside sales and/or sales service men; 

(d) Watchmen who may be permitted to work a maximum of 
fifty-six (56) hours in any week; 

(e) Engineers, firemen and pumpmen who may be permitted to 
work a maximum of forty-eight (48) hours in an}^ week. 

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.^ 

Section 2. Wages. — 

A. No employee not elsewhere in this section otherwise specifically 
provided for or excepted, shall be paid at less than the rate of 

(a) 400 per hour in any city, wherever located, of 100,000 popula- 
tion or over, or in the immediate trade area of such city; 

(b) 400 per hour in that part of the continental United States 
west of the 108th longitudinal meridian (defined in this Code as the 
Pacific Coast Territory) ; 

(c) 3T%0 per hour in that part of the continental United 
States north of the 38th parallel of latitude and east of the 108th. 
longitudinal meridian, including the entire States of Kansas and 
Oklahoma ; 

(d) 300 per hour in all other parts of the United States with the 
exception of the States of Kansas and Oklahoma. 

B. No clerical, office, sales service or sales employees (except out- 
side sales and/or sales service men) shall be paid at less than the 
rate of : 

(a) $15.00 per week in any city of over 500,000 population or in 
the immediate trade area of such citv; 

(b) $14.50 per week in any city between 250.000 and 500,000 
population, or in the immediate trade area of such city; 

(c) $14.00 per week in anj' other place. 

1 See paragraph 2 of order approving this Code. 



45 

This article establishes a minimum rate of pay which shall apply 
irrespective of Avliether an employee is actually compensated on a 
time rate, piece-work or other basis. 

Skction 3. War/es Ahove the Minimum. — Employers shall not re- 
duce the rates of Avafres for employees compensated at rates above 
the minimum (notwithstanding that the number of hours worked in 
such employment may be hereby decreased) and where in any case 
an employer has not increased the rates of wages for such employees 
prior to the effective date of this Code by an equitable readjustment 
of all such wage rat^s, such employer shall readjust all such Avage 
rates. This provision shall be interpreted in the same manner that 
Paragraph 7 of the President's Reemployment Agreement has been 
interpreted by the Administrator in Interpretations Nos. 1 and 20. 
This section shall not applv to emplovees compensated at rates above 
$35.00 per week. 

Section 4. Child Lahor. — Xo person under sixteen (16) years of 
age shall be employed in the industry. Xo person under eighteen (18) 
years of age shall be employed on mining, quarrying or milling 
operations. 

Section 5. CoUcctive Bargai7ung^ Etc. — In compliance with Sec- 
tion 7 (a) of the Act, it is provided : 

(a) That employees shall have the right to organize and bargain 
collectively through representatives of their own choosing, and shall 
be free from the interference, restraint or coercion of emploj-ers of 
labor, or their ao;ents, in the designation of such representatives or 
in self -organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection ; 

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

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

Section 6. Reclassi-fication of Employees. — Xo employer shall re- 
classify employees or duties of occupations performed or engage in 
any other subterfuge for the purpose of defeating the purposes or 
provisions of the Act or of this Code. 

Section 7. State Laics. — Xo 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 this Code. 

Section 8. Posting. — Each employer shall post copies of the Code 
in accordance with such rules and regulations as the Administrator 
may prescribe. 

Section 9. Infrm and Aged Employees. — 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 estab- 
lished by this Code, if the cmploj^er obtains from the State authority 
designated by the United States Department of Labor, a certificate 
authorizing his employment at such wages and hours as shall be 

57414° — —544-43 34 — —2 



4G 

stated in the certificate. Such authority shall be guided by the in- 
structions of the United States Department of Labor in issuing 
certificates to such persons. Each emplo3'er 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 of such 
employee. 

Section 10. Company Houses and Stores. — Emploj^ees other than 
maintenance or supervisory men, or those necessary to protect prop- 
ert}?", shall not be required as a condition of employment to live in 
homes rented from or specified by the employer. 

No emploj'ee shall be required as a condition of employment to 
trade at a store owned or specified by an employer. 

Section 11. Payment of Wages. — Every employer shall (except 
under circumstances defined by the Code Authority and approved 
by the Administrator) make payment of all vrages due in lawful cur- 
rency or by negotiable check therefor payable on demand. These 
wages shall be exempt from anj'^ deduction for pensions, insurance, 
or sick benefits, other than those voluntarily agreed to by the wage 
earner, or required by law. Wages shall be payable at least semi- 
monthly, and salaries at least monthly. No employer (except when 
specifically authorized by the employee or except in compliance with 
garnishment or other legal process) shall withhold wages. 

Section 12. Safety and Health. — The Code Authority shall study 
conditions relating to safety and health of employees and submit 
to the Administrator standards therefor within a reasonable time 
after having been called for by him. 

Article IV — Administration 

Section 1. Code Authority. — 

(a) There shall forthwith be constituted a Code Authority con- 
sisting of thirteen (13) persons, twelve (12) of whom shall be the 
Board of Directors of the Association, as such board shall be con- 
stituted from time to time, and one (1) of whom shall not be a 
director or member of the Association but shall be a member of the 
industry selected by the non-association members of the industry by 
a method of selection approved by the Administrator; provided, 
however, that if at any time any member of the industry entitled 
to be upon the Code Authority under the provisions of paragraph (c) 
of this Article, shall not be a member of the Association and its 
Board of Directors or selected as the non-association member of tht 
Code Authority, then the membership of the Code Authority is auto- 
maticalh' increased to include any such member of the industry. 
Until the non-association member has been selected and qualified the 
Code Authority shall consist of the twelve directors of the associa- 
tion and such of those members of the industr}^ covered by para- 
graph (c) as are not members of the Association and its Board of 
Directors : Provided, however, that the Administrator may appoint 
a non-association member to act until the permanent non-associa- 
tion member has been selected and qualified. Each such member of 
the Code Authority shall be entitled to one (1) vote. 

(b) In addition to membership as above provided, there may be 
not to exceed three (3) members without vote, to be aj^pointed by 
the Administrator to serve without cost to the industry. 



47 

(c) The Code Authority and any committee thereof must have 
thereon a representative of eacli member of the industry producing 
twonty-five per cent (25%) or more of annual industry tonnage, 
and a representative of one of the members of the industry having 
its entire plant facilities in the Pacific Coast Territory, each such 
^epresentati^'e to be a person actiA'ely connected with the business 
of such member. Any member of the Code Autliority and of any 
committee thereof may appoint as his alternate any other person 
actively connected with the business of an}' member of the industry. 

No member of the industry shall have more than one representa- 
tive on the Code Authority or any committee thereof, and no alter- 
nate shall be connected with any company already represented on 
the Code Authority or any committee thereof, provided that any 
member of the Code Authority may appoint an alternate from his 
own company. 

(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 if he shall find that the Code 
Authority is not truly representative or does not in other respects 
comply with the provisions of the Act, he may require an appro- 
priate modification in the method of selection of the Code Authority. 

(e) At any duly called meeting of the Code Authority or of any 
committee thereof a three-quarters affirmative vote of the members 
present shall be required to make effective any action of such Code 
Authority or committee; provided, however, that after the Code 
Authority or any committee thereof sliall have taken any action, 
if any three members of the Code Authority or any member or 
members of the industry having twenty-five per cent (25%) or more 
of the industry tonnage, shall, at the meeting at which the action 
was taken, request it, the action of the Code Authority shall be 
suspended for a term of ten (10) days; if, within said ten-day 
term, any member or members of the industry having twenty-five 
per cent (25%) or more of said industry tonnage (including the 
tonnage of the member or members first requesting the suspension) 
shall in writing call for a vote by tonnage, then such action of the 
Code Authority or of any such Committee shall be and remain 
suspended for a term of thirty (30) days from the date such action 
by the Code Authority or by any such Committee was adopted. If, 
within said period of susj^ension, any member or members of the 
industry having seventy per cent (70%) of the industry tonnage 
(including the tonnage of the member or members having requested 
or joined in the suspension) shall object in writing to the Code 
Authority to such action of the Code Authority or of any such Com- 
mittee, then the same shall become inoperative, otherwise the same 
shall stand as the action of the Code Authority or of such Committee 
from the date of original adoption of such action. At any meeting 
of the Code Authority at which any action is taken, any member of 
the Code Authority may vote the tonnage of any member of the 
industry who is not a member of the Code Authority and for whom 
he holds and presents a duly executed power of attorney in form 
prescribed by the Code Authority. In case at any time the Admin- 
istrator shall find after consultation with the Code Authority that 



48 

tlie above proviso operates in such manner that the Code Authority 
can not effectuate the purposes of the Code or of the Act, then after 
such notice and hearing as he may specify, he may require such 
modification in the proviso as he may deem necessary to enable the 
Code Authority to function properly in the administration of the 
Code but such modification shall give effect to a vote by tonnage on 
a basis that the vote of seventy per cent (70% ) of industry tonnage 
will render any action or proposed action of the Code Authority 
inoperative. 

(f ) Within fifteen (15) days after the effective date hereof, each 
member of the industry shall file with the agency designated by 
the Code Authority in accordance with Section 5 (a) of this Article 
IV, a certified statement of his actual tonnage of calcined gypsum 
including that contained in manufactured products plus eighty- 
five per cent (85%) of the actual tonnage of rock and other forms 
of raw gypsum sold by each member during the calendar year 
1933. The total of such tonnage so filed shall, for the purposes of 
this section, be the industry tonnage, and the tonnage filed by each 
member shall be the tonnage which such member is entitled to vote 
hereunder or use for the purposes aforesaid during the term of this 
Code, as defined in Article IX, Section 8. 

(g) A majority of the voting members of the Code Authority 
or any Committee thereof shall constitute a quorum. 

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

Section 3. 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 expense 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 as may 
be deemed equitable. 

Section 4. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor shall 
any member of the Code Authority be liable in any manner to 
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, 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. 

Section 5. Powers and Duties. — The Code Authority shall have 
the following further powers and duties and in the exercise thereof 
may appoint from time to time agents or committees, every such com- 
mittee to have not less than five (5) members, provided that such 
agents and committees shall comply with the provisions hereof. 



49 

(a) To collect from the members of the industry all data and 
statistics which may be properly called for under this Code. Any 
data andy^or statistics of a confidential nature shall be collected by a 
Hrm of accountants or other suitable agency selected by the Code 
Authority and not a member or connected with a member of the 
industry, and shall be kept confidential ; provided that any violation 
found to exist shall be reported to the Code Authority, and all such 
data and statistics shall be fully available at all times to the proper 
governmental officials. 

(b) To represent the industry in conferring with the Adminis- 
trator with respect to the application of this Code and of said Act 
and any regulations issued thereunder, and, subject to such rules 
as the Administrator may prescribe, hear complaints and, if possible, 
adjust the same in accordance with the provisions hereof, and to 
coordinate the administration of this Code with any Code or Codes 
adopted and approved by any other industry which may affect this 
industry, with a view to providing joint and harmonious action upon 
all matters of common interest, and to receive and initiate any pro- 
posals for supplementary provisions or amendments of this Code, 
or additional Codes, applicable to the industr}-. 

(c) To make rules and regulations for its conduct in the adminis- 
tration of this Code within the scope of its powers and duties there- 
under; and to cooperate with the Administrator and other proper 
governmental officials in the enforcement of this Code. 

(d) To cooperate with the Administrator in restricting the usei 
of the X.R.A. Code Insignia solely to those members of the industry 
who are complying with this Code. 

Section 6. Pacvfic Coast Coinmittee. — An5i;hing in this Code to the 
contrary notwithstanding, any matters at any time pending before 
the Code Authorit}' concerning the administration or enforcement 
of this Code, affecting solely the interests of the members of the 
industry in the Pacific Coast Territory, shall be referred for decision 
to a committee of five (5) selected by the members of the industry 
having one or more j)lants for the manufacture of industry products 
located in such territory, and the Code Authorit}^ shall be bound 
by the decision of such committee and shall take such action thereon 
as may be recommended by such committee, when same shall have 
been approved by at least three-fourths (^) of the members having 
one or more plants in the Pacific Coast Territory. The representa- 
tives of the Administrator appointed to the Code Authority may 
serve in like capacity with respect to the Pacific Coast Committee. 
The decisions of this Committee shall be subject to the provisions 
of Section 7 of this Article IV. 

Section 7. Appeal. — Any interested party shall have the right of 
complaint to the Code Authority with respect to any act of any 
agent or committee designated b}' the Code Authority to act for or 
in its behalf, and a prompt hearing and decision shall be had thereon. 
Any interested party shall have the right of appeal to the Admin- 
istrator, under such rules and regulations as he shall prescribe, with 
respect to any decision, rule, regulation, order, or finding made by 
the Code Authority. 

Whenever any appeal is taken to the Administrator from any 
action of the Code Authority, the Administrator may require that 



50 

such action be suspended for a period of not to exceed thirty (30) 
daj's to afford an opportunity for investigation of the merits of 
such action, and further consideration by such Code Authority or 
agency pending final action. 

If the Administrator shall determine that any action of the Code 
Authority or any agenc}^ thereof be unfair or unjust or contrary to 
the public interest, the x\dministrator 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 thirt}^ (30) days' notice to him of intention to proceed with 
such action in its original or modified form. 

Article V — Costs 

Section 1. Sales Belom Cost.— Aiter a definition and schedule of 
cost has been adopted by the Code Authoritj^ and approved by the 
Administrator as provided in Section 2 of this Article V, no member 
of the Industry shall price or sell any Industry product below such 
member's cost, as so defined, except to meet a competitive price on 
the same product or except in the introduction of a new industry 
product or except Avhen the necessity of meeting the competition of 
a non-industry product is recognized b}^ the Code Authority and 
approved by the Administrator. The Code Authority ma}'^ consider 
and describe other conditions and circumstances, if any, under which 
members of the industry may sell below such member's cost which 
shall first be submitted to the Administrator for approval. Any 
exceptions permitted by or under this section shall be disclosed to 
and shall apply to all members of the industry. 

Section 2. Dete7"mination of Cost. — Within ninety (90) days after 
the effective date of this Code, the Code Authority shall prepare a 
definition and schedule of costs for the purposes of this Article V. 
After the same shall have been submitted to the Industry for criti- 
cism and suggestions, the same shall be submitted to the Adminis- 
trator for his approval. 

Each member of the Industry shall have available records and 
information necessary for determining costs in accordance with such 
definition and schedule irrespective of the member's system or method 
of keeping records. 

For the purposes of this Code, cost of each Industry product shall 
be determined by each member of the Industry by computing accord- 
ing to such definition and schedule the weighted average cost of the 
total production of such product of such member for the twelve (12) 
calendar months preceding the date of sale of such product. 

The provisions of this Article V shall not appi}' to those products 
excepted from the provisions of Article VI of this Code. 

Article VI - — Publication of Prices 

Section 1. Price PuMlcation. — (a) Each member of the industry 
shall, within ten (10) days after the effective date of this Code, file 

' See paragraph 2 of order approving this Code. 



51 

with the Code Aiithorit}'' or such a,o:ency or agencies as the Code 
Authority may designate, complete lists or schedules of prices and 
terms and conditions of sale of all industry products offered for sale 
by such member which shall become effective at the expiration of 
such ten-day period ; and shall so file all subsequent changes therein 
or revisions thereof which shall become effective at the times here- 
inafter provided in Section 2 of this Article VI. 

(h) Such price lists or schedules a^nd terms and conditions of sale 
ancl changes or revisions thereof, so filed as aforesaid, shall, from 
and after the effective date thereof, for the purposes of this Code, 
be treated as the published price lists or schedules and terms and 
conditions of sale of the member filing the same. 

(c) Whenever any price list, schedules, or terms or conditions of 
sale, and change in or revision thereof, has been filed by any member 
in accordance with the provisions of the preceding paragraphs, the 
Code Authority shall forthwith cause a copy of the same to be sent 
to each member of the industry who produces or sells or desires to 
sell any industrj^ product in the territory as to which the prices 
therein mentioned may apply; and such price lists or schedules and 
terms and conditions of sale and changes in or revisions thereof, 
shall be available after the effective date thereof to the trade and to 
other prospective buyers. 

(d) The Code Authority shall designate the Pacific Coast Com- 
mittee (established under the provisions of Section 6 of Article IV), 
or such agency as said Committee may select, as its agency for receiv- 
ing and distributing price lists and schedules and terms and condi- 
tions of sale and changes in or revisions thereof applicable to sales 
or quotations for sale, for delivery within the Pacific Coast Terri- 
tory. Such committee or agency shall, immediately upon receipt of 
any price lists or schedules and terms and conditions of sale or 
changes in or revisions thereof, send a copy thereof to the Code 
Authority or such agency as the Code Authority shall appoint for 
that purpose. 

(e) Price lists and schedules and terms and conditions of sale 
need not be filed covering sales of industry products by members of 
the industry to other members, except stucco for dry mixing. Price 
lists of special products manufactured by not more than three (3) 
members of the industry, when such special products are not used 
in, or sold to persons connected with, the building industry and price 
lists on precast structural gypsum products not sold to dealers 
(except standard partition tile), need not be filed. 

Section 2. Waking Period. — All changes in or revisions of any 
member's price lists or schedules and terms and conditions of sale 
shall be so filed five (5) days prior to the effective date thereof, and 
shall become effective at the end of said five (5) days unless the 
member filing shall cancel the same in writing at any time before 
such effective date ; 

Provided, however, that if an}' member shall receive notice of the 
filing of changes in or revisions of another member's price lists or 
schedules and terms and conditions of sale too late to file and make 
effective on the same date such changes or revisions in his own price 
lists or schedules and terms and conditions of sale as he desires to 
meet the changes and revisions already filed, then if such member 



52 

shall file his changes or revisions at least twenty-four (24) hours 
before the effective date, the same shall become effective on the effec- 
tive date of such other member's changes or revisions ; 

Provided, further, that during such period of time as the Admin- 
istrator shall AvhoUy suspend or eliminate the waiting period in this 
Article, all changes in or revisions of such price lists or schedules 
and terms and conditions of sale shall become effective immediately 
upon the filing thereof; or if the Administrator at any time shall 
limit such waiting period to some period of time less than five (5) 
days, then the maximum time permissible under such limitation shall 
stand, in lieu of the five (5) days above mentioned, as such waiting 
period, and this section, so modified, shall be and remain in full force 
and effect. 

Section 3. Sales at Published Pnces. — No member of the industry 
shall sell any industry product at a price or prices below, or upon 
terms and conditions more favorable to the buyer than those stated 
in such member's published price lists or schedules and terms and 
conditions of sale then in effect. 

Article VII — Mei^chaxdisixg Plan 

The Code Authority shall study marketing conditions and make 
recommendations to the industry for a merchandising plan for the 
sale and distribution of industry products by all members of the 
industry containing such provisions as may be necessary or proper 
to insure fair selling methods by tlie industry, and to prevent unfair 
competitive practices; which plan after approval by the Adminis- 
trator may be adopted b}^ any member of the Industr}' at his volun- 
tary election, and included in the member's terms and conditions of 
sale fixed with the Code Authority; but nothing contained in this 
Article VII or any approval or disapproval by the Administrator 
of any such plan shall either be construed to prevent any member of 
the industTy from adopting and using any plan of merchandising 
such member desires and changing and altering the same from time 
to time, or as an approval of Vivxy member's plan of merchandising 
except when expressly approved as part of a plan adopted by the 
Code Authority. 

Article VIII — Trade Practice Rules 

Rule 1. Rehates, Subsidies, etc. — No member of the industry shall 
make payment or allowances of rebates, refunds, credits, unearned 
discounts, or other allowances, whether in the form of monej' or 
gifts or otherwise, as a means of effecting or concealing price dis- 
crimination or the extending to certain purchasers of special privi- 
leges, including discriminatory allowances for services or other 
things not extended to all purchasers under like terms and 
conditions. 

Included within the practices prohibited, but not by waj' of limi- 
tation, are price concessions in the furnishing of materials without 
charge, giving of allowances for advertising not actually placed, the 
making of allowances on damaged sacks in excess of their actual 
value, the making of allowances for unsupported claims for damage 



53 

or shortage of goods in transit, the making of allowances on unveri- 
fied complaint of the quality of goods, the rental of warehouse space 
owned or leased by manufacturers to dealers at a rental less than 
what the fair value would be for other similar property in adjacent 
territor}^ No member shall hereafter rent or lease or extend any 
existing lease for warehouse space for industr}^ products from lumber 
or building material dealers. 

Rule 2. Defamation of Competitors. — No member of the industry 
shall circulate or disseminate false or misleading information by 
words or acts relative to the prices, credit standing, business integrity, 
or ability to perform contracts, of any competitor. 

RijLE 3. False Branding. — No member of the industry shall mark, 
brand or fail to brand products for the purpose or with the effect of 
misleading or deceiving the purchasers with respect to the quantity, 
quality, grade or substance of the goods purchased. 

Rule 4. Imitation of Tra^e Mark. — No member of the industry 
shall knowingly imitate or simulate any trade-mark, trade name, 
package, brand or label of a competitor in such degree as to deceive 
or have the tendency to deceive customers. 

Rule 5. 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. Where such exception is made it shall be appli- 
cable to all members of the industry under like circumstances and 
conditions. 

Rule 6. Skipments vntKout Orders. — No member of the industry 
shall make shipments, other than those involving mere transfer of 
materials to manufacturer's warehouses or plants, without in each 
case having an order from a customer for shipment at the time of 
making shij^ment. 

Rule T. Failure to State Unit Price. — No member of the industry 
shall submit bids for two or more commodities, one or more of which 
is an industry product, in which the unit price of each commodity is 
not clearly stated, except in the case of erected jobs including labor 
and/or lump sum bids on fireproofing, acoustical materials or special 
products. 

Rule 8. Combination Sales. — No member of the industry for the 
purpose or with the effect of influencing the sale of industry products 
shall sell or offer for sale other commodities at prices below the 
member's current price for such other commodities. 

Rule 9. Substituti/)n. — No member of the industry shall market or 
sell a superior product in packages of a lower priced and inferior 
product at prices lower than the published price of such superior 
product. 

Rule 10. Splitting of C ompensation. — No member of the industry 
shall permit splitting of commissions or other compensation received 
by an employee or agent of the member with a buyer or with others 
to influence a sale. 

Rule 11. ComTnissions. — No member of the industry shall pay 
commissions to one buyer because of purchases made by another 
buyer in the same buj^er classification. 

Rule 12. Quantity Sales. — No member of the industry shall make 
a price for quantities in excess of single carloads lower than the 
single carload price, provided however that this rule shall not apply 



54 

to sales by one member of the industry to another member, except 
sales of stucco for dry mixing. 

Rule 13. Payments. — No member of the industry shall agree at 
the time of sale to accept anj^thing other than cash, negotiable check, 
or customers own interest bearing paper, except at current market 
value, in payment for materials purchased. 

Rule 14. Financing Dealers and Contractors. — No member of the 
industry, for the purpose of influencing a sale, shall offer, or promise 
to finance or to aid in financing any contractor or any dealer, 
whether directly or indirectly. 

No member of the industry shall assume the cost of or endorse or 
guarantee other bidders' bonds, or in any way relieve other bidders 
of the responsibility for or of the expense of providing such bonds. 

Rux,E 15. False Classification. — No member of the industry shall 
falsely classifj^ commodities for freight purposes different from the 
classification adopted by the carriers, to secure lower freight rates. 

Rule 16. Protected Contracts. — All contracts and orders for ship- 
ment taken before or after the effective date of this Code may be 
protected at the price at which the contract and/or order was taken; 
and material sold under such protection shall be applied only on the 
contract and/or order for which the protection was given ; provided, 
however, that contracts or orders for dealers stock (except gypsum 
sold for agricultural purposes) shall not be made or accepted for 
shipment be^'ond thirtj^ days from date of contract or order. 

Rule 17. Duration of Quotations. — All quotations shall be subject 
to change without notice except for specific building jobs where quo- 
tations ma}^ be protected against a price increase for not more than 
thirty days, except for Federal Government jobs, for which protec- 
tion may be given for sixty days. 

Rule 18. Specific Joh Protection. — Each member shall list with 
the Code Authority or its agency within fifteen days after the effective 
date of any price increase all outstanding quotations or commitments 
on specific jobs, made prior to the price increase, naming the job, its 
location, the dealer, the contractor, approximate tonnage, and the 
price quoted. All quotations for specific jobs shall expire thirty days 
(exce^Dt quotations on Federal Government jobs, which shall expire 
sixty days) after the effective date of any price increase unless during 
that period a firm contract has been made to cover said job. During 
such periods above referred to, any specific job not covered with a 
firm contract shall be open to all members of the industry at the 
same price and under the same terms and conditions as listed with 
the Code Authority by any other member. Within ten days after 
closing of a firm contract on any such specific job, the member of 
the industry shall list with the Code Authority or its agency his 
contract, supported, when requested by the Code Authority, by 
definite information concerning the contract between the dealer and 
contractor or owner as the case may be. All quotations on specific 
jobs shall provide that the quotation shall expire upon the making of 
a contract covering that job. 

Rule 19. Listing Protected Johs. — Each member of the industry 
shall list with the Code Authority or its agency, within fifteen 
days after the effective date of this Code, all contracts for specific 
jobs in effect on the effective date of this Code and within fifteen 



55 

days after his price increase all contracts for specific jobs in effect 
on the date of his price increase, indicating in each case the amount, 
if any, of tonnage shipped prior to the date of listing, showing the 
location of the job, name of the dealer, name of the contractor, total 
unshipped tonnage, with such supporting data as the Code Authority 
may request to show the nature of the transaction betw^een dealer 
and contractor and/or owner. 

Rule 20. Specific Job Reports. — Any member of the industry 
listing any specific job contracts shall report to the Code Authority 
or its agency all shipments made thereon as and when the same 
are made and also shall report completion, cancellation or modifica- 
tion of any of his such contracts, and may report information con- 
cerning any member's listed jobs. The Code Authority shall 
promptly disseminate to the members of the industry concerned, all 
such information pertaining to protected jobs. 

Rules 16, 17, 18, 19 and 20 shall not apply to precast structural 
gypsum products not sold to dealers (except standard partition tile). 

Article IX — Miscellaneous 

Section 1. Monopolies or Monopolistic Practices. — No provisions 
of this Code shall be interpreted or applied in such manner as to 
permit monopolies or monopolistic practices; permit or encourage 
unfair competition ; eliminate or oppress small enterprises, or dis- 
criminate against them. 

Section 2. Exports. — Articles V, VI, VII and VIII hereof shall 
not apply to products sold for export outside continental United 
States or for shipment to Panama Canal Zone and Alaska. 

Section 3. Patents. — Nothing contained in this Code shall be con- 
strued as prohibiting any member of the industry from exercising 
all its and/or their lawful patent rights, or as requiring any member 
of the industry to do any act in conflict with the terms of a patent 
licensing agreement legally binding upon such member. 

Section 4. Cancellation or Moclifcation. — The President may 
from time to time cancel or modify any order, approval, license, 
rule or regulation issued under the Act. 

Section 5, Amendments. — It is contemplated that from time to 
time amendments and modifications or supplementary provisions 
to this Code or additional Codes may be submitted for the approval 
of the President to prevent unfair competition in price or other 
unfair or destructive competitive practices, and to effectuate the other 
purposes and policies of the Act, Such amendments and modifica- 
tions. sui:)plementary provisions or additional codes, after the same 
shall have been submitted to the industry and shall have been ap- 
proved by a fair representation of the industry, may be presented to 
the President by the Code Authority ; and upon the approval of the 
President of any such amendment, supplementary' provisions or 
additional code, after such notice and hearing as he shall specify, the 
same shall become a part of this Code and effective as such. 

Section 6. Violation. — Violation by any member of this industry 
of any of the provisions of this code or of any approved amend- 
ments hereof, is an unfair method of competition and shall be sub- 
ject to the penalties prescribed by the Act; but nothing herein con- 



56 



tained shall be construed to create any liability or PenaUy for viola- 
tion of this Code beyond the penalties prescribed by the Act 

SectioT'L Approval and Ter^mnMion.-This Code shall be in 
effect be-inn no- the second Monday after its approval by the Presi- 
dent pui^rnt to the Act, and shall in any event terminate on June 
IfiiqSo oJ the earliest date prior thereto on ^vhich the President 
hal by procWtion or the Congress shall by Joint resolution de- 
clare that the emergency recognized by Section 1 of the Act has 
ended. 



Approved Code No. 420. 
Registry No. 1024-05. 



o 



Approved Code No. 421 
CODE OF FAIR COMPETITION 

FOR THE 

MARBLE QUARRYING AND FINISHING INDUSTRY 

As Approved on May 9, 1934 



ORDER 



Approvixg Code of Fair Competition for the Marble Quarrying 
AND Finishing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Marble Quarrying and Finishing 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 the provisions of Article VII, Section 5, insofar as 
the}' prescribe a waiting period between the filing with the Code 
Authority (or such agency as may be designated in the Code) and 
the effective date of price lists, as originally filed and/or revised 
price lists or revised terms and conditions of sale, be and they are 
hereby stayed pending my further order; and provided further, that 
the hourly rate for the North as provided in Section 1 of Article 
III be approved pending the completion of a study of this rate in 
connection with the rates of similar codes; and provided further, 
that the Code Authority shall not later than ninety days after the 
date of this order, submit to the Administrator further evidence that 
the averaging of hours as provided in Section 1 of Article II is 
necessary in this Industry. 

Hugh S. Johnson, 
Administrator fw Industrial Recovery. 

Approval recommended : 
A. R. Glancy, 

Division Adininistrator. 

Washington, D.C, 

May 9, 193J^. 

57684° 544-^6 34 (57) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Marble Quarrying and Finishing Industry the public hearing hav- 
ing been conducted thereon in Wavshington. D. C, on September 8, 
1933, in accordance with the provisions of the National Industrial 
Recovery Act. 

INDUSTRY BACKGROUND 

The Marble Quariying and Finishing Industry, as its name im- 
plies, represents the quarrying (producing) and fabricating branches 
of the Marble Industry. The construction industry utilizes about 
three-fourths of all the marble quarried, the remaining one-fourth 
being used principally for monumental purposes. Competitively, 
marble for exterior use is related to the other stone industries — lime- 
stone and granite especially. In interior work marble is also in com- 
petition with slate, wood, metal, tile and synthetic substitutes. 

The industry at present is suffering acutely from the lack of con- 
struction and accordingly is at a virtual standstill. The current vol- 
ume of business done by the 3.1arble Quarrying and Finishing In- 
dustry is about ten per cent of 1929 at which time, it is reported, 
the value of manufactured marble was approximate!}^ $53,000,000. 

A further indication of the unfortunate position, in which the 
Marble Industry is presently situated, lies in the fact that the setting 
of marble in a building structure lags from six months to a year 
behind structural steel work. Hence, even when construction even- 
tually shows improvement in volume, the Marsjle Industry cannot 
look for improvement in its sales until months later. 

HOURS AND WAGES 

The Code establishes a 40-hour week excepting vvatchmen who are 
permitted to work 56 hours per week, firemen and plant engineers 
who are permitted to work 48 hours }}er week, and shipping clerks 
and truckmen who are permitted to work 45 hours per week. 

Minimum rates of wages established are 371/2 cents per hour in the 
North and 30 cents per hour in the South. 

Child labor is prohibited and no person under 18 years of age 
may be employed at occupations or operations which are hazardous 
in nature or dangerous to health. 

ECONOMIC EFFECT OF THE CODE 

Available statistics do not segregate employment in the marble 
manufacturing industry from all other stone industries. It is esti- 
mated, however, that in 1929 the total number of v\orkers engaged 
in marble quarrying and manufacturing was 17,000. By the sum- 
mer of 1933 this number had been reduced to G250 and at present 
it is estimated by tiie Industry reprcvsentatives that there are only 
about 3000 employees working a total of around 22,000 man hours on 
a part time basis. 

Therefore, in view of these conditions and those recited above, 
there is no possibility of any material increase in employment until 

(58) 



59 

conditions in the construction industry improve. The wage and 
hour provisions of the Code very materially improve labor con- 
ditions in the South where the minimum wage rates, now established, 
represent an Increase over " depression " rates of as much as 100 
per cent. The 37^ cent rate in the North also represents a sub- 
stantial increase in minimum rates paid in 1933 prior to the Act, 
and, furthermore, in most regions raises minimum rates above tho 
1929 level. 

The Code also re-establishes bidding rules of the Industry that 
were in effect for more than 12 years prior to the depression. It 
is expected that placing these bidding rules in operation again will 
stabilize the industry and assist in returning it to its former healthy 
basis of operation. 

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

I find that : 

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

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

(c) The Code as approved complies in all respects with the 
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 
associations are industrial associations truly representative of the 
aforesaid Industry ; and that said associations impose no inequitable 
restrictions on admission to membership therein. 

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

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

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

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

Hugh S. Johnson, 

Administrator, 
May 9, 1934. 



CODE OF FAIR COMPETITION FOR THE MARBLE 
QUARRYING AND FINISHING INDUSTRY 

To effectuate the policy of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Marble Quarrying and Finishing Industry, 
and shall be the standards of fair competition for such Industry and 
shall be binding upon every member thereof. 

Article I — Definitions 

Section 1. The terms " Marble Quarrying and Finishing Indus- 
try " or " Industry ", as used herein, include the quarrying and/or 
finishing of marble for any structural or other use and the sale there- 
of by the quarrier or finisher, except the finishing and sale of marble 
for use as monuments and memorials as are usually erected in ceme- 
teries other than public or private mausoleums. 

Section 2. The term " member of the Industry " includes an}^ indi- 
vidual, partnership, corporation or other form of enterprise engaged 
in the Industry, either as an employer or on his own behalf. 

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

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

Section 5. The term " Producer " as used herein means any mem- 
ber of the industry who quarries marble. 

Section 6. The term " Non-Producer " as used herein means any 
member who does not quarry but who finishes marble. 

Section 7. The term " Commissioner " as used herein means a 
person appointed by the Code Autliority to act in their behalf and 
under their direction in matters pertaining to the Administration of 
the provisions of this Code. 

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. 

Section 9. The term " Code Authority " as used herein means the 
body constituted under Article V hereof, to cooperate with the 
Administrator in the administration of this Code. 

Section 10. The term "Association " as used herein shall mean the 
National Association of Marble Dealers. 

Section 11. Population for the purposes of this Code shall be 
determined by reference to the 1930 Federal Census. 

Article II — ]Maximum Houes 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours per week, averaged over a consecutive six (6) 
weeks period, or in excess of fortj^-eight (48) houre in any week, or 
in excess of eight (8) hours in an}' twenty-four (24) hour period, 
with the following exceptions: 

(CO) 



61 

(ft) Employees engaged in professional, executive or supervisory 
work regularly earning at the rate of not less than Thirtj'-five Dol- 
lars ($85.00) \)er week; 

(b) Accounting, clerical or office employees; 

(c) Outside Salesmen and Outside Estimators; 

(d) Watchmen, who shall not be permitted to work in excess of 
fifty-six (56) hours per week; 

(e) Employees engaged in emergency work involving breakdowns 
or protection of life or property; 

(f) Firemen and plant engineers who shall not be permitted to 
work in excess of forty-eight (48) hours per week; 

(g) Shipping clerks, who shall not be permitted to work in excess 
of forty-five (45) hours per week. 

(h) Truckmen who shall not be permitted to work in excess of 
forty-five (45) hours per week. 

Any employee, except employees covered by subsections (a), (b), 
(c) and (cl) of this Section 1, who works in excess of forty (40) 
hours per week or eight (8) hours per day shall be compensated at 
the rate of at least one and one-third times the normal rate of pay 
for all such hours; provided, however, that firemen, plant engineers 
and truckmen shall be compensated at the rate of at least one and one- 
third times the normal rate of pay for all hours worked in excess of 
nine (9) hours per day.^ 

Section 2. No accounting, clerical or office employee shall be per- 
mitted to work in excess of forty (40) hours per week, or, except 
when engaged in estimating work, in excess of nine (9) hours in any 
one day. A normal working day shall not exceed eight (8) hours. 

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

Section 4. Any employer shall be subject to the maximum limita- 
tions hereinbefore in this Article provided in the performance by 
him of manual labor or operations customarily performed by em- 
ployees. 

Section 5. No employee shall bs permitted to work in excess of 
six (6) days in any seven (7) day period. 

Article III — Minimum Wages 

Section 1. No employee shall be paid in any pay period less than 
at the rate of thirty-seven and one-half (371/2) cents per hour in the 
North and thirty (30) cents per hour in the South, except as other- 
wise herein provided. - 

Section 2. 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 if the employer 
obtains from the state authority, designated by the United States 
Department of Labor, a certificate authorizing such person's employ- 
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 

^ See paragraph 2 of order approvirg this Ccfle. 
2 See paragraph 2 of order approving this Code. 



62 

United States Department of Labor in issuing certificates to such per- 
sons. 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. 

(a) The term " South " as used herein is defined to include the 
states of Virginia, North Carolina, South Carolina, Georgia, Florida, 
Alabama, Mississippi, Tennessee, West Virginia, Kentucky, Arkan- 
sas, Oklahoma, Louisiana Texas, Arizona, and New Mexico. 

(b) The t^rm " North as used herein is defined to mean the re- 
mainder of the United States not specifically included in the 
" South " as defined in sub-paragraph (a) of this Section 2. 

Section 3. No person employed in clerical or office work shall be 
paid at less than 'the rate of : 

(a) $15.00 per week in any city of over 500,000 population, or in 
the immediate trade area of such city; 

(b) $14.50 per week in any city of between 250,000 and 500,000 
population, or in the immediate trade area of such city; 

(c) $14.00 per week in any other place. 

Section 4. This Article establishes a minimum rate of pay which 
shall apply, irrespective of whether an employee is actually compen- 
sated on a time-rate, piece work or other basis. 

Section 5. An employer shall make pa3'ment of all wages due 
not otherwise than in lawful currency, or by negotiable check therefor 
payable on demand. The employer or his agents shall accept no 
rebates directly or indirectly on such payments. Wages shall be 
payable at least at the end of every two week period and salaries 
at least at the end of every month. 

Section 6. The amounts by which hourly wage rates in the higher 
paid classes of employees exceeded wages in the lower paid classes 
of employees in effect on the effective date of this Code, shall be at 
least maintained where equitable, having in view the then existing 
differentials in hourly wage rates. 

Article IV — General, Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industr}^ No person under eighteen (18) years 
of age shall be employed at operations or occupations which are 
hazardous in nature or dangerous to health. The Code Authority 
shall submit to the Administrator for review thirty days after 
the effective date of this Code a list of such operations or occupa- 
tions. In any state an employer shall be deemed to have complied 
with this provision as to age if he shall have on file a certificate 
or permit duly signed by the authority in such state empowered to 
issue employment or age certificates or permits showing that the 
employee is of the required age. 

Section 2. Standards as to the maximmn hours of labor, mini- 
mum rates of pay, and such other conditions of employment as may 
be necessary to effectuate the policies of Title I of the Act may be 
established for any area by mutual agreements between employers 
and employees arrived at and approved pursuant to the provisions 
of Section 7 (b) of the Act, provided that the wage and hour pro- 



63 

visions of such agreements shall not be less favorable to employees 
than the wage, hour and other labor ])rovisions established in this 
Code. 

Section 3. (a) employees shall have the right to organize and 
bargain collectively, through representatives of their own choosing, 
and shall be free from the interference, restraint, or coercion of 
employers of labor, or their agents, in the designation of such 
representatives or in self-organization or in other concerted activi- 
ties for the purpose of collective bargaining or other mutual aid 
or protection. 

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

(c) Emplo3'ers shall comjDly with the maximum hours of labor, 
minimum rates of pay and other conditions of employment approved 
or prescribed by the President. 

Section" 4. No emploj-er 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. 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. 

Section 6. No provisions in this Code shall supersede any State, 
Federal or local law 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 7. All employers shall post copies of this Code in accord- 
ance to such rules and regulations as the Administrator may 
prescribe. 

Section 8. (a) Employees other than maintenance or supervisory 
men, or those necessary to protect property, shall not be required, as 
a condition of employment, to live in homes rented from the 
employer. 

(b) No employee shall be required, as a condition of employment, 
to trade at a store owned b}'^ or specified by an employer, or his agent. 

Section 9. When any employer is obliged by the terms of an 
agreement made prior to June 16, 1933, which is still in full force 
and effect under which he is legally bound to employ workers for 
other hours per day or per week or to pay them other wages than 
those provided in this Code, and which he is unable to revise by 
mutual consent, the requirement of such an agreement may be ob- 
perved notwithstanding any conflicting requirements of this Code. 

Section 10. No member of this Industry shall contract any work 
within this Industry to anyone subject to less stringent conditions 
as to hours of labor and rates of pay than those imposed by this 
Code. 

57G84° 544— 4G 34 2 



64 

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

Aeticle V — Administration 

Section 1. Organisation cmd Constitution of Code Authority. — A 
Code Authority is hereby constituted to administer the provisions 
of this Code, and shall consist of seven (7) members to be selected 
as follows : 

(a) Four (4) members, two (2) of whom shall be "non-pro- 
ducers " and members of the Association and two (2) of whom shall 
be " producers " and members of the National Association of Marble 
Producers and the Association. One (1) of these four (4) mem- 
bers shall be the President of the Association. The members (ex- 
cept the President of the Association) who are producers shall be 
elected by the Board of Directors of the National Association of 
Marble Producers, and the members (except the President of the 
Association) who are non-producers shall be elected by the Board 
of Directors of the Association. These members shall serve until 
the next annual meeting of the Association, and their successors 
shall be elected in the same manner. 

(b) One member to be elected by a majority vote of the members 
of the Industry within the Metropolitan District of the City of New 
York (which shall include Greater New York, Long Island and 
the territory within twenty-five (25) miles from the present New 
York City line) at a meeting, the time and place of which shall be 
designated by the Secretary of the Marble Industry Employers Asso- 
ciation of New York and Vicinity. Notice of said meeting shall be 
sent by said Secretary within ten daj-s after the effective date of the 
Code by registered mail to all known members of the Industry 
within this area as defined above, and shall specifically state that 
voting at the meeting may be in person or by proxy. 

(c) One member to be elected by a majority vote of the members 
of the Industry within the Pacific Coast area (which shall include 
the States of California, Oregon, Washington, Idaho, Nevada, 
Utah and Arizona) at a meeting, the time and place of which shall 
be designated by the Secretary of the Association or other party 
authorized. Notice of said meeting shall be sent by the Secretary 
or other authorized party within ten (10) days after the effective 
date of the Code by registered mail to all known members of the 
Industry within the above defined area, and shall specifically state 
that voting at the meeting may be by person or by proxy. 

(d) One member who shall be a member of the Industry but not 
a member of either the Association or the National Association of 
Marble Producers, or located in either of the two above specified 
regions, to be elected by a majority vot.e of the other six members 
of the Code Authority and to serve until such time as the non- 
members of said Association shall, pursuant to a method of election 
satisfactory to the Administrator, elect his successor. 

(e) The members of the Code Authority, except the members as 
selected in Section 1 (a), shall serve for a period of one year, or 
until their successors are elected. Upon any vacancy occurring in 
the Code Authority, the vacancy shall be filled by an election by the 



65 

remaining members of the Code Authority, which, however, shall 
maintain the representation as to producers, non-producers and 
areas as set out in (a), (b), (c) and (d) of Section 1. 

(f) In addition to membership as above provided, there may be 
three members, without vote, to be known as Administration members 
to be appointed by the Administrator to serve for such terms as he 
may specify. 

Section 2. The National Association of Marble Dealers or any 
other trade association that may directly or indirectly participate in 
the selection or activities of the Code Authority shall (1) impose no 
inequitable restrictions on membersliip, and (2) submit throusrh the 
Code Authority to the Administrator, copies of its articles of asso- 
ciation, by-laws, regulations, and any amendments when made there- 
to, 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. 

Section 3. 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 truh^' 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. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. No mem- 
ber of the Code Authority shall be liable in any manner to anyone 
for any act of any other member, officer, agent or employee of the 
Code Autho^it3^ Nor shall any member of such Code Authority, 
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 wilful misfeasance or nonfeasance. 

Section 5. (1) It being found necessary to support the Adminis- 
tration of this Code, in order to effectuate the policy of the Act and 
to maintain the standards of fair competition established hereunder, 
the Code Authority is authorized : 

(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes and to meet such obligations out 
of funds which shall be held in trust for the purposes of the Code 
and raised as hereinafter provided; 

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary : 
(1) An itemized budget of its estimated expenses for the foregoing 
purposes, and (2) An equitable basis upon which the funds neces- 
sar}' to support such budget shall be contributed by all members of 
the Industry entitled to the benefits accruing from the maintenance 
of such standards, and the administration thereof; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and collect ecjuitable con- 
tributions as above set forth, and to that end, if necessary, to institute 
legal proceedings therefor in its own name. 

(2) Each member of the trade/industry shall be liable for his or its 
equitable contribution to the expenses of the maintenance of the Code 



G6 

Authority as hereinabove provided. Only members of the trade/in- 
dustry complying with the Code and making such contribution shall 
be entitled to participate in the selection of the members of the Code 
Authority or to receive the benefits of its voluntary activities or to 
make use of any N.R.A. insignia. 

Section G. In addition to the powers and duties elsewhere provided 
herein the Code Authority shall have the following powers and duties 
to the extent permitted by the Act : 

(a) to adopt By-Law\s and rules and regulations for its procedure 
and for the administration and enforcement of the Code, subject to 
such rules and regulations as the Administrator may prescribe. 

(b) to appoint a Commissioner who shall serve as its Agent. 
Said Commissioner shall have such authority and perform such 
duties as herein set forth, and as the Code Authority may from time 
to time delegate to him; but nothing contained herein shall relieve 
the Code Authority of its duties and responsibilities. 

(c) to establish regional divisions and designate appropriate agen- 
cies for the administration of this Code in each such division, and 
delegate to such agencies all necessary power and authority, not in- 
consistent with the power and authority granted the Code x\.uthority 
under this code, for the administration of the Code in such divisions, 
provided that such agencies shall comply with the provisions of this 
Code and of the Act and provided, further that the Code Authority 
shall reserve the power and duty to provide for compliance with the 
provisions of this Code in such regional divisions ; 

(d) to obtain from members of the Industry for the use of the 
Code Authorit}' for the Administrator in the administration and en- 
forcement of the Code, and for the information of the President, 
such periodical reports as may be necessary to advise it adequately on 
all matters connected with the administration of the Code. All in- 
dividual reports shall be k^pt confidential and only general sum- 
maries thereof may be published, except when necessary to investi- 
gate or enforce violations of this Code; 

(e) under such rules and regulations as may be prescribed or ap- 
proved by the Administrator, to receive complaints of violations of 
this Code, make investigations and seek adjustments thereof in ac- 
cordance with the requirements of this Code, and bring to the atten- 
tion of the Administrator for prosecution, recommendations and 
information relative to unadjusted violations; 

(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 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; 

(g) to create the necessary agencies of employers to conduct 
negotiations between truly representative groups of employers and 
employees covering wages, hours of labor, and conditions of 
employment ; 

(h) to co-operate with the Administrator in regulating the use 
of the N.R.A. Insignia solely by those employers who have assented 
to, and are complying with, this Code; 



67 

(i) to recommend to the Administrator further fair trade prac- 
tice provisions to govern the members of the Industrj" in their rela- 
tions with each other, or with other Industries, and to recommend 
to the Administrator measures for Industrial Planning, including 
stabilization of employment; 

(j) to initiate, consider and make recommendations to the Ad- 
ministrator for the modification or amendment of this Code, which 
recommendations, after such notice and hearing as the Adminis- 
trator may prescribe and upon his approval, shall become ejffective 
as provisions of this Code. 

GENERAL ADMIXISTKATI^T PROVISIONS 

Section 7. The Code Authority shall appoint, within ten (10) 
days after the effective date of this Code, a committee of Members 
of the Industry whose duties it shall be to secure from all known 
marble contractors and Members of the Industry by questionnaire 
and/or other means information as to the advisability of all Members 
of the Industr}^ establishing an open price system on all kinds of 
finished marble produced and/or finished by them; and, further, to 
report within 90 days its findings and recommendations to the 
Administrator for the purpose of determining whether such open 
price system on finished marble shall be established. 

The report of the findings and reconunendations of said committee 
shall be based on the information received from Members of the 
Industry with resi>ect to, and taking into consideration, the relation 
between the number of replies received from both marble contrac- 
tors and Members of the Industry and the volume of sales of finished 
marble by those replying to said questionnaire or other form of 
inquiry. 

If after consultation between the Code Authority and the Ad- 
ministrator it is mutually agreed that such an open price system 
shall be established, the Code Authority shall w^ithin a period of 
time specified by the Administrator, present a plan for its establish- 
ment to the Administrator for his approval or disapproval. 

Section 8. In addition to information required to be submitted 
to this code authority, all or any of the persons subject to this code 
shall furnish such statistical information as the xVdministrator may 
deem necessary to 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. 

Section 9. 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 daj^s' notice to him of intention to proceed with 
such action in its original or modified form. 



68 

Article VI — Trade Practices 
(Subdivision "A") 

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

Section 1. Maliciously inducing or attempting to induce the 
breach of existing contracts bet^yeen competitors and their custom- 
ers by any false or deceptive means whatsoever, or interfering with 
or obstructing the performance of any such contractual duties or 
services by any such means. 

Section 2. The making or causing or permitting to be made or 
published any false, untrue or deceptive treatment by way of adver- 
tisement or otherwise, concerning the grade, quality-, quantity, sub- 
stance, character, nature, origin, size or preparation, of any product 
of the Industry, having the tendency and capacity to mislead or 
deceive customers, purchasers or prospective purchasers or the tend- 
ency to injuriously affect the business of competitors. 

Section 3. No member of the industry shall secretly directly offer 
or make any payment or allowance of a rebate, refund, commission, 
credit, unearned discount or excess allowance, whether in the form 
of money or otherwise, nor shall a member of the industry secretly 
offer or extend to any customer any special service or privilege not 
extended to all customers of the same class, for the purpose of 
influencing a sale. 

Section 4. Securing information from competitors concerning 
their businesses by false or misleading statements or representations 
or by false impersonations of one in authority. 

Section 5. Deviation from the published schedules of prices as 
provided for in Section 5 of Article VII. 

(Subdivision " B ") 

The following practices shall apply only to the sale of finished or 
semi-finished interior marble, but the violation thereof shall also 
constitute an unfair method of competition and is prohibited : 

Section 1. All persons engaged in the Industry shall use such 
standard form of contract as may be approved by the Code Author- 
ity, and by the Administrator after such notice and hearing as he 
may specify, Avhich form of controct shall protect the rights of both 
buyers and sellers and, after approval by the Administrator shall 
have the effect or provisions of this Code except that it shall not 
apply to : 

(a) United States, State or Municipal contracts, where a different 
form is required by law, regulation or ord.inance ; or 

(b) Cases where the estimate is made and the order is placed on 
the basis of a definite schedule of materials. 

Section 2. (a) There shall be no disclosure of competitive bids, 
or misleading or deceiving as to the amount or conditions of com- 
petitive bids, and no bid peddling or bid trading, and no misrepre- 
sentations as to prices by members of the industry. ■ 

(b) All bidders on a competitive job shall submit their bona fide 
and final bids in the first instance and no changes shall be made by 



69 

am- bidders except those due to figuring changes in plans and speci- 
fications as provided in Section 11 following; and in figuring such 
changes, including separation of bids on different parts of the work, 
the same basis of unit prices and the same allowance for overhead 
and profit shall be used as those upon which the original bid was 
based. 

Section 3. Limiting Amount. The provisions in Sections 4 to 14 
inclusive of this Article shall apply only to quotations amounting to 
one thousand dollars ($1000.00) or more, f.o.b. plants. 

Sectiox 4. Definite Closing Date, (a) When a definite closing 
date, the day and the hour, after which no more bids will be re- 
ceived, has been set by the party requesting the bids, and the plans 
and specifications or the request for bids, fully identify the building 
for which the marble work is intended; 

(b) Everyone invited to bid must immediately notify the Com- 
missioner, by wire if necessary, of the closing date named. If dif- 
ferent closing dates are named, the Commissioner shall notify all 
proposing to bid to withhold their bids and not to submit them 
until a single definite closing date has been established. All pro- 
posing to bid are then required to notifj^ the party requesting the 
bids that they will submit their bids only in case a single definite 
closing date is established ; 

(c) Every bidder on a job shall prepare a carbon copy of his bid 
and send it to the Commissioner. This copy must be a true carbon 
copy of the actual bid and shall also contain a list of the names of 
all parties to whom it has been submitted ; 

(d) The copy for the Commissioner shall be mailed on the day be- 
fore the closing date, and, in cases where strict compliance with this 
rule is impossible, all the essential facts and the amount of the bid 
shall be filed in the telegraph office for transmission by wire to the 
Commissioner on the day before the closing date. In an}' case, copies 
shall be sent to the Commissioner by mail, and whether sent on the 
day before or not, be inclosed in an envelope which plainly indicates 
that they are bids on the particular job. The Commissioner shall 
not open them until the day af t^r the closing date ; 

(e) In case a closing date is changed by the party requesting bids, 
everyone learning of it shall immediately notify the Commissioner, 
by telegraph or telephone, if necessary, and he shall immediately 
notify all prospective bidders by telegTaph or telephone, if necessary. 

Sectiox 5. Invitation to Bid. Anyone invited to submit a formal 
bid lokeij' to amount to one thousand dollars ($1000.00) or more, 
f.o.b. plant, or anyone proposing to submit a bid without invitation, 
shall immediately report the fact to the Commissioner, giving the 
name of the building, and marble contractor, and shall state whether 
he proposes to comply with the request or not. He shall also report 
the closing date, if any, established by the party requesting the bid. 
Xo bid shall be made by anyone on a set of plans or specifications or 
other information, which does not completely identify the building. 

Sectiox 6. Non -competitive Bids, (a) Anyone submitting in writ- 
ing what he understands to be a non-competitive bid, shall forv\'ard 
a carbon copy thereof to the Commissioner, together with the name 
of the party to whom submitted, and a statement that the bid is 
non-competitive. Should no other bids on the same job be received, 



70 

the Commissioner shall keep the whole matter confidential, but 
should other bids on the same job be received, the Commissioner 
shall notify all the bidders of the facts, and the matter shall be 
treated as a case of competitive bidding; 

(b) A continuous non-competitive negotiation, culminatmg in the 
definite award of a contract, is not subject to the requirements of 
the foregoing paragraph (a), but the facts of the award and the 
amount of the contract must be reported to the Commissioner. 

Section 7. Insuring Bona Fide Competition. Prior to the closing 
date, the Commissioner will withhold from all persons whatsoever 
any information as to the actual or prospective bidders on any job. 

Sectiox 8. Distribution of Bids to Bidders. The Commissioner 
shall prepare a schedule of all the bids received on any competitive 
job, showing amounts of bids, names of bidders, and names of those 
to whom each bid has been submitted. This information shall be 
complete in all details, including amounts named on all alternates. 
On the day after the closing date, or as soon thereafter as possible, 
a copy of '^ this schedule shall be mailed to every bidder who has 
complied with the Rules for Bidding contained in this subdivision 
" B ", and to no one else. This information shall not be given to 
anyone who is not one of the bidders, nor to any other person, except 
the bidders described. 

Section 9. Certain Alternative Bids not to be disclosed. When 
a bidder submits an alternative bid and no other alternative bid is 
submitted on the same material, the facts of the submission of this 
bid and the name of the bidder shall be disclosed to the other bidders, 
but the amount thereof shall not be disclosed. This alternative bid 
shall be treated in the same way as a single bid as provided in 
Section 10. 

Section 10. A single Bid does not constitute Competition. Where 
competitive bids are asked for and only one is received, there is no 
competition, and if the party requesting the bids, asks for additional 
ones, additional bids may be submitted on a new closing date, as 
though no bidding had occurred. 

Section 11. Accepting Contracts after Competitive Bidding, (a) 
At any time after the closing date, any bidder is free to accept a 
contract for the marble work concerned on the basis of his bid as 
submitted. All bidders are free to give the person who has the 
letting of the contract figures for omissions, additions and changes, 
all, however, to be figured on the same basis as that used in preparing 
their bids. If a contract is awarded on a competitive job after 
negotiations of this sort, or on the basis of an alternative bid not 
disclosed, the bidder receiving the contract must immediately report 
the facts to the Commissioner and must certif}' that changes have 
been figured on the same basis as his bid. 

(b) If no changes have been made, and the contract is awarded 
at the total amount of one of the bids, the successful bidder shall 
immediately report the facts to the Commissioner. After the marble 
work has been awarded, the successful bidder shall send a certified 
copy of the contract, or purchase order, to the Commissioner. 

Section 12. Reporting award of Contract to Bidders. After the 
contract on any job has been aw^arded, the Commissioner shall report 
to all the bidders, all the essential facts pertaining thereto, and 



71 

shall then disclose to the bidders, the amounts of any alternative 
bids previously kept coniidential in accordance with Section 9 of 
this Article. 

Sectiok 13. Bidders may state in their bids the time limit after 
the closing date within which the bid must be acted upon, and no 
bidder shall withdraw his bid during such time limit. In case no 
such time limit is stated within the bid, no bidder shall withdraw 
his bid for a period of 30 days after the closing date. 

Section 14. New Bidding on Re^dsed Plans, Specifications or 
Schedules. Except as provided in Section 11, bids may not be 
submitted on the same plans, specifications or schedules, after the 
closing date, and after a set of competitive bids has been submitted, 
but if bids are rejected, and new bids invited on revised plans, 
specifications or schedules, the following provisions shall apply 
with respect to the submission of bids by members of the Industry : 

(a) If the revisions are in quantity of marble only, and the total 
change does not amount to more than twenty five per cent (25%) 
of the total quantity of marble originally called for, no member of 
the industry who clid not submit a bid on the original plans and 
specifications or schedules shall bid upon such revised plans and 
specifications or schedules. 

(b) If the revisions involved changes in the kind of marble only 
and such revisions do not involve changing more than twenty five 
per cent (25%) of the quantity originally called for, no member of 
the industry who did not submit a bid on the original plans and 
specifications or schedules shall bid upon such revised plans and 
specifications or schedules. 

(c) If quantities are changed, and the kinds of marble are also 
changed, if the sum of such changes does not amount to more than 
twenty five per cent (25%) of the quantity of marble originally 
called for, no member of the industry who did not submit a bid on 
the original plans and specifications or schedules shall bid upon such 
revised plans and specifications or schedules. 

(d) When bids are submitted on revised plans, specifications or 
schedules involving changes in the kind of marble, if a kind of 
marble called for in the plans and specifications or schedules pre- 
viously bid upon is included in the revised plans and specifications 
or schedules as an alternate, without changes in quantities thereof 
amounting to twenty-five per cent (25%) or more, no member of the 
industry who did not submit a bid on such kind of marble in tlie 
original plans and specifications or schedules shall submit a bid on 
such kind of marble so included in the revised plans and specifica- 
tions or schedules as an alternate, provided that this rule shall not 
apply unless the description contained in the original plans and spec- 
ifications or schedules of the marble in question is specific as to grade. 

A mere general specification of a marble from a given locality, 
where a number of grades and kinds are produced, shall not be 
sufficient to make this rule operative. 

Section 15. All members of the Industry shall, when called upon 
by the Commissioner or by the Code Authority, cooperate with the 
Commissioner or the Code Authority, to the end that the Rules for 
Fair Competition may fairly and effectively be administered. 

Section 16. The rules contained in this subdivision " B " may be 
suspended or modified, in whole or in part, by the Administrator 



72 

after notice and hearing granted to the Code Authority, if he shall 
be satisfied that such rules are not effectuating the policy of the Act. 

Article VII — Cost Determixation 

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

Section 2. A member of the Industry shall not sell or offer to sell 
labor, materials and/or services, or submit a bid or accept an order 
or contract, below the allowable cost thereof. 

Section 3. The Code Authority, with the approval of the Admin- 
istrator, shall determine which items of cost shall be included in, 
and a method and/or formula for the determination of, allowable 
cost. 

Section 4. Until such time as such items and method and/or for- 
mula shall have been determined and approved as provided in Sec- 
tion 3 of this Article and allowable cost defined, allowable cost shall 
be the sum of the following items : 

(A) Materials, including cost of transportation; 

(B) Waste; 

(C) Labor, Supervision and Supplies, for 

(a) Sawing; 

(b) Coping; 

(c) Rubbing; 

(d) Polishing; 

(e) Finishing; 

(f) Machine work and cutting; 

(g) Boxing and packing; 
(h) Insurance; 

(i) Power, light and heat; 
I]) Water supplies; 
(k) Maintenance and repairs; 
(1) Drafting and estimating; 

(D) Breakage and replacements of Material; 

(E) AlloAvance of ten per cent (10%) of the sum of A. B, C and 
D, as above, for overhead, selling and administrative expense. 

Section 5. For the purpose of determining the allowable cost of 
a finislied job, whether f .o.b., delivered, or set in place, " allowable 
cost " shall be determined as provided in Section 4 of this Article, 
except that each person, if a producer, shall use as the basis for cost 
of material which he himself produces, to be finished for such finished 
job, his individual published market price therefor hereinafter pro- 
vided for, and except that each person not a producer shall use as 
the basis for cost of material to be finished for such finished job the 
cost price actually paid by such person for such material. Each 
producer shall within thirty (30) days after the effective date file 
with the Code Authority and make available to the members of the 



73 

Industry and to purchasers and prospective purchasers a schedule 
of prices for the various types and classifications of blocks, slabs, 
and slabs coped to size produced by him, which schedule of prices 
sliall remain in effect until changes therein have been tiled with the 
Code Authority. Revised schedules of prices may be filed from time 
to time thereafter, Avith the Code Authoritj' by any producer, to 
become effective upon a date specified therein, but such revised 
scheihdes of prices shall be filed with the Code Authority ten (10) 
days in advance of the effective date, unless the Code Authority shall 
authorize a shorter period. Copies of such revised schedules of 
l)rices with notice of the effective date specified, shall be nuide avail- 
able to the members of the Industry immediately and shall like- 
wise be available to any purchaser or prospective purchaser.^ 

Article VIII — Modificatiox 

Sectiox 1. This Code and all 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 Recover}' Act from time to time to cancel or modif}" any order, 
approval, license, rule or regulation issued under Title I of the said 
Act and specifically but without limitation to the right of the Pres- 
ident to cancel or modify his approval of any provision of this Code 
or any conditions imposed by him upon his approval thereof. 

Section 2. This Code except as to the 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 by the Administrator. 

Article IX — jMonopolies 

No provision of this Code shall be so construed or applied as to 
permit or promote monopoly or monopolistic practices, or to elimi- 
nate, oppress or discriminate against small enterprises. 

Akticle X — Effectia'e Date 

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

Approved Code No. 421. 
Registry No. 1023-28. 



' See paragraph 2 of order approving this Code. 

o 



Approved Code No. 422 
CODE OF FAIR COMPETITION 

FOR THE 

CANVAS STITCHED BELT MANUFACTURING 

INDUSTRY 

As Approved en May 9, 1934 



OKDER 



Approvixg Code of Fair Comfetition for the Canvas Stitched Belt 
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 Canvas Stitched Belt Manufacturing In- 
dustry, and hearings having been duly held thereon and the annexed 
report on said Code, containing findings with respect thereto, having 
been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will i3romote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
Comj>etition be and it is hereby approved. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
H. O. King, 

Division Administrator. 

Washington, D.C, 

Marj 9, 1934. 

57800° 544-51 34 (75) 



REPORT TO THE PRESIDENT 

The President, 

The White Honse. 

SiK : This is a report on the Hearing on the Code of Fair Compe- 
tition for the Canvas Stitched Belt Manufacturing Industry, held in 
Room 2062, Department of Commerce Building, on February 19, 
1934. The Code which is attached was presented by duly qualified 
and authorized representatives of the Industry, complying with 
statutory requirements, said to represent all concerns in 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 seven concerns, having an investment in 
1933 of $935,000. In 1929 the seven concerns who are still engaged 
in the Industry employed 208 employees. This figure has declined 
to about 150 employees in 1933. Aggregate annual sales for the seven 
concerns has declined from $2,254,000' in 1929 to $537,000 in 1933. 

PRO\aSIONS OF THE CODE 

The Code provides for a minimum wage of 350 per hour, and 321/^0 
per hour for learners during a six weeks period of apprenticeship. 
Learners are limited to 10% of the total number of employees. The 
weekly rate of compensation shall not be reduced because of any 
reductions in the number of hours of work per week and dollar differ- 
entials existing on June 16, 1933 are to be maintained for all em- 
ployees receiving $35 or less per week. 

Hours of work for clerical and office employees are limited to 40 
hours per week and eight hours per day with a provision that these 
employees are permitted to work ten hours a day for one day each 
week. 

Hours of work for all other employees are limited to 40 hours a 
week and eight hours a day with the following exceptions: 

Employees are permitted to work 48 hours per week and nine hours 
per day for not more than ten weeks in any one year provided 
that time and one-third is paid for all work in excess of 40 hours a 
week and eight hours a day; engineers and shipping crews are per- 
mitted to work 44 hours per week and nine hours per daj'^; firemen 
are permitted to work 48 hours per week and 12 hours per day ; em- 
ployees engaged exclusively in a supervisory capacity receiving $35 
per week or more and outside salesmen are not limited as to hours; 
watchmen are permitted to work not more than 56 hours per week 
and 12 hours per day ; employees in cases of special necessity are ex- 

(76) 



77 

cepted from the mnxiiniini hours provisions but shall be j)aid time 
and one-half for all overtime work. 

Representation of the Code Authority is provided for all members 
of the Industry. There are no restrictive provisions. The Code 
provides for an open price association in the Industry, but permits 
prices to be revised without a waiting period. 

nxuiXGS 

The Deputy Administrator in his final report to me on said Code 
liaving 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 
the removal of obstructions to the free flow of interstate and foreign 
commerce which tends to diminish the amount thereof, and will 
provide for the general welfare by promoting the organization of 
industry for the purpose of cooperative action among the trade 
gi'oups, by inducing and maintaining united action of labor and 
management under adequate governmental sanction and supervision, 
by eliminating unfair competitive practices, by promoting the full- 
est possible utilization of the present productive capacity of indus- 
tries, by avoiding undue restriction of production (except as may 
be temporarily required), by increasing the consumption of industrial 
and agricultural products through increasing purchasing power, by 
reducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

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

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

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

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

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

For these reasons, this Code of Fair Competition for the Canvas 
Stitched Belt Manufacturing Industry has been approved. 
Respectfully, 

Hugh S. Johnson, 

Advmiistrator. 
Mat 9, 1934. 



CODE OF FAIR COMPETITION FOR THE CANVAS 
STITCHED BELT MANUFACTURING INDUSTRY 

Article I — Pltrposes 

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

Article II — Definitions 

1. The term " Industry " as used herein includes the manufacture 
and the sale by manufacturers of canvas stitched belting, but does 
not include solid woven, rubber, balata, or leather belting, or the 
manufacture of the fabric used in canvas stitched belting. 

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

3. The t^rm " employee " as used herein includes anyone engaged 
in the Industry in any capacity receiving compensation for his 
services, irrespective of the nature or method of payment of such 
compensation, except a member of the Industry. 

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

5. The term " watchmen " is defined to mean employees whose 
primary duty is watching and guarding the property of their 
employer. 

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

Article III — Hours 

1. No person employed in clerical or office work shall be permitted 
to work in excess of forty (40) hours in any one week or eight (8) 
hours in any twenty-four (24) hour period, provided, however, 
that he may be permitted to work ten (10) hours a day for one 
day each week, provided, further, that in no event shall he work 
more than forty (40) hours in any one week. 

2. No other 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, provided, however, that these emploj-ees may 
be permitted to work forty-eight hours in any one week and nine (9) 

(78) 



79 

hours in ai^y one day for not more than ten (10) weeks in any one 
year, provided, further, that time and one-third (1%) shall be paid 
for all hours worked in excess of forty (-10) hours in any one week 
and eioht (8) hours in anj' one da}^, excepting that : 

(a) Engineers and shipping crews shall be permitted to work 
not in excess of ft)rt_y-four (44) hours in anj' one week or nine (9) 
hours in any one day. 

(b) Firemen shall be permitted to work not more than forty- 
eight (4S) hours in any one week or twelve (12) hours in any' one 
day. 

(c) Executives and employees engaged exclusivel}" in a manage- 
rial or supervisor}' capacity, Avho are paid thirty-five dollars ($35.00) 
or more per week and outside salesmen are exempted from all pro- 
visions of this Section. 

(d) "Watchmen shall be permitted to work not more than fifty-six 
(56) hours in any one week or more than twelve (12) hours in any 
one day. 

(e) Emplo^'ees engaged in emergency maintenance or emergency 
repair work are excepted from the maximum hour provisions of 
this Section but in an}' such special case over time for all work in 
excess of the maximum hours specified herein shall be paid for at not 
less than one and one-half (l^^) times the normal rate. All such 
over-time work shall be reported to the Code Authorit3\ 

3. Xo emplo3'er shall knowingly permit any employee to work for 
a total number of hours in excess of the number of hours prescribed 
for each week and da}', whether employed by one or more employers 
in the Industry. 

4. Xo employee shall work or be permitted to work more than six 
(6) days in any seven (7) day period. 

Article IY — Wages 

1. Xo employee shall be paid less than at the rate of fourteen 
dollars ($14.00) per week of forty (40) hours or thirty-five cents 
(350) per hour, except as otherwise provided herein. 

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

3. The provisions of Section 1 of this Article shall not apply to 
learners during a six weeks' aj)prenticeship, during which time 
learners may be paid at not less than at the rate of thirty-two and 
one-half cents (321/2^) per hour. Xo employer shall include within 
the category of learners more than ten per cent (10%) of the total 
number of employees in his plant, provided, however, that nothing 
herein shall prevent any member of the Industry from employing at 
least one learner. 

4. Employees shall be paid at the rate of time and one-half (l^/^) 
the normal rate of pay for all work performed on Sundays, Memo- 
rial Day, the Fourth of July, Labor Day, Thanksgiving Day, Christ- 
mas and Xew Year's Day. 

5. Xo employee shall be paid a wage rate which will yield a 
lower weekly wage for the shorter full-time week herein established 
than he could have earned for the same class of work for the longer 



80 

full-time week existing June 16, 1933. Dollar differentials existing 
on June 16, 1933, shall at least be maintained for the same class 
of work, for all employees who are paid $35.00 per week or less. 

6. No employer or his agent shall accept rebates directly or indi- 
rectly on wages. 

7. Female employees performing substantially the same work as 
male employees shall receive the same pay as male employees and 
where female employees displace male employees they shall receive 
the same rates of pay as the male employees who perform this work. 

8. A person whose earning capacity is limited because of age or 
physical or mental handicap may be employed on light work at a 
wage below the minimum established by this Code if the employer 
obtains from the State authority designated by the United State? 
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 monthly with the Code Authority a list of 
all such persons employed by him, showing the wages paid to, and 
the maximum houi*s of work for, such employee. 

Artic5le V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed in 
this 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. This Code Authority shall submit 
to the Administrator for approval before April 1, 1934, a list of 
such operations or occupations. In any State an employer shall be 
deemed to have complied with this provision as to age if he shall 
have on file a valid certificate or permit duly signed by the Author- 
ity in such State empowered to issue employment or age certificates 
or permits showing that the employee is of the required age. 

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

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

4. 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 provision in this Code shall supersede any State or Federal 
law which imposes on employers more stringent requirements as to 
age of employees, wages, hours of work, or as to safety, health, 
sanitary or general working conditions, or insurance, or fire protec- 
tion, than are imposed by this Code. 

6. Employers shall not reclassify employees or duties of occu- 
})ations performed by emploj^ees or use any other subterfuge so as 
to defeat the purposes of the Act or of this Code. 

7. All employers shall post and keep posted the full labor pro- 
visions of this Code in conspicuous places readily accessible to em- 



81 

ployees, and shall comply with all rules and regulations relative to 
the posting of provisions of Codes of Fair Competition which may 
be prescribed by the Administrator from time to time. 

8. Every emplover shall make reasonable provisions for the safety 
and health of his emploj'ees at the place and during the hours of 
their employment. Standards of 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 

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

(a) Three representatives of the Industry, or such other member 
as may be approved from time to time by the Administrator, to be 
selected as hereinafter provided. 

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

2. The representatives of the Industry shall be selected in the 
following manner : 

(a) The representatives shall be elected by a majority vote of 
the members of the Industry. All known members of the Industry 
shall be notified by registered mail at least ten (10) days prior to 
the election. Voting by mail shall be permitted and each member 
of the Industry shall be entitled to vote for three (3) members of 
the Code Authority. 

(b) Members of the Code Authority shall hold office for one year 
or until their successors are elected and qualified. 

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

4. In order that the Code Authority shall at all times be truly 
representative of the Industry and in other respects comply with 
the provisions of the Act, the Administrator may prescribe such hear- 
ings as he may deem proper; and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act. may require an 
appropriate modification in the method of selection of the Code 
Authorit3^ 

5. It being found necessary, in order to support the administration 
of this Code and to maintain the standards of fair competition estab- 
lished by this Code and to effectuate the policy of the Act, the Code 
Authority is authorized, subject to the approval of the Admin- 
istrator : 

(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes and to meet such obligations 
out of fundri which may be raised as hereinafter provided and wdiich 
shall be held in trust for the purposes of the Code ; 



82 

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary, 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon AThich the funds necessary 
to support such budget shall be contributed by members of the 
Industry ; 

(c) After such budget and basis of contribution have been approved 
by the Administrator, to determine and secure equitable contribution 
as above set forth by all such members of the Industry, and to that 
end, if necessary, to institute legal proceedings therefor in its own 
name. 

Only members of the Industry complying with the Code and 
contributing to the expenses of its administration as provided above 
shall be entitled to participate in the selection of the members of the 
Code Authorit}' or to receive the benefit of its voluntary activities 
or to make use of any emblem or insignia of the National Recovery 
Administration. 

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

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

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

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

(b) To adopt bj^-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. 
In addition to information required to be submitted to the Code 
Authority, members of the Industry subject to this Code shall fur- 
nish such statistical information as the Administrator may deem 
necessary for the purposes recited in Section 3 (a) of the Act to 
such Federal and State agencies as he may designate ; provided that 
nothing in this Code shall relieve any member of the Industry of 
any existing obligation to furnish reports to any Government 



83 

Agency. No individual reports shall be disclosed to any other mem- 
ber of the Industry or any other party except to such (governmental 
agencies as may be directed by the President or the Administrator. 

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

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

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

(g) To 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 stabili- 
zation of employment; and including modifications of this Code, 
which shall become effective as a part hereof upon approval by the 
Administrator after such notice and hearing as he may specify. 

Article VII — Trade Practices 

1. On or before ten days after the effective date of this Code, all 
members of the Industry shall file with the Code Authority a schedule 
of discounts from the standard price lists of the Canvas Stitched 
Belt Manufacturers, adopted October 1, 1929, together with all 
terms and/or conditions of sale for each weight of each standard 
competitive grade of Canvas Stitched Belting sold or offered for sale. 
A standard competitive grade of Canvas Stitched Belting is defined 
to mean the lowest priced Canvas Stitched Belting manufactured 
of 371/2 ounce, 34 ounce, 32 ounce, and 26 ounce cotton duck. Any 
member of the Industry may revise his schedule at any time. Such 
revised schedule shall be deemed to have been filed and shall become 
effective immediately after registered letters containing such revised 
schedules shall have been mailed to the Code Authority and all other 
members of the Industry. 

Xo member of the Industry shall sell or offer for sale any stand- 
ard competitive grade of Canvas Stitched Belting at more favorable 
discounts, terms, and/or conditions of sale than those specified in the 
schedule filed with the Code Authority as hereinbefore provided. 
Any allowance to any purchaser for handling or consigned stock 
which results in a net price lower than the net price listed to the 
class to which the purchaser belongs, shall be considered a violation 
of this provision. 

2. No member of the Industrj- shall manufacture any belting below 
38 ounce weight except when made of 371/2 ounce, 34 ounce, 32 ounce, 
and 28 ounce cotton duck. Weight shall be based on the commercial 
yard of 36 inches by 42 inches. 

3. No member of the Industr^^ shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influencing 



84 

or reAvarding the action of any employee, agent, or representative 
of another in reLation to the business of the employer of such em- 
ploj^ee, the principal of such agent or the represented party, without 
the' knowledge of such employer, principal, or part3\ This provi- 
sion shall not be construed to prohibit free and general distribution 
of articles commonly used for advertising except so far as such arti- 
cles are actually used for commercial bribery as hereinabove defined. 
4. No member of the Industry 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, substance, character, nature, finish, 
material content, or preparation), or credit terms, values, policies, 
services, or the nature or form of the business conducted. 

Article VIII — Modificatiox 

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

2, After due notice and hearing, this Code, except as to provisions 
required by the Act, may be modified on the basis of experience or 
changes in circumstances; such modifications shall be based on the 
recommendation of the Code Authoritj^ or of any interested party 
or group or on the Administrator's own initiative and shall become 
effective on approval by the Administrator. 

Article IX — jNIoxopglies 

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 — Effecti\te Date 

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

Approved Code No. 422. 
Registry No. 205-02. 

o 



Approved Code No. 423 

CODE OF FAIR COMPETITION 

FOR THE 

DROP FORGING INDUSTRY 

As Approved on May 10, 1934 



ORDER 



Approm^xg Code of Fair Competition for the Drop 
FoRGixG Industry 

An application having been duly made pursuant to and in full 
comiDliance 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 Drop Forging 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 words " ninety-six (96) hours " as contained in 
Section 2 (d) of Article III be deleted and the words " seventy-two 
(72) hours" be substituted therefor; provided further, that Section 
3 of Article IX be deleted; provided further, that the provisions 
of Section 4 of Article VII, insofar as they prescribe a waiting 
j^eriod 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 (60) days from the effective date of this 
Code or after the completion of a study of open price 'associations 
noAv being conducted by the National Recovery Administration; and 
provided further, that the continued participation of the American 
DrojD Forging Institute in the Code Authority after thirty (30) 
daj^s from the effective date of this Code shall be contingent upon 
its amending its constitution and by-laws to the satisfaction of the 
Administrator. 

Hugh S. Johnson, 
Administrator for IruMstrial Recovery. 

Approval recommended : 
A. R. Glanct, 

Division AdTninistrator. 

Washington, D.C, 

May 10, 193J^. 

58132° 544-56 34 (85) 



EEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the Code of Fair Competition for the 
Drop Forging Industry, a Public Hearing having been held thereon 
in Washington, D.C., on February 1, 1934, in accordance with the 
provisions of the National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

The Code provides for a 40 hour and 6 day week, except as 
herein specified below : 

Those employed in an executive, supervisory or administrative 
capacity or their immediate assistants, and salaried technical men 
and field service engineers, all of whom are being paid at the rate 
of $35.00 or more per week, and outside salesmen ; 

Watchmen, provided their hours shall not exceed 56 per week, 
and plant engineers and firemen, provided they shall not be per- 
mitted to work in excess of 45 hours per week, and further provided 
that all three classes shall be given one day of rest in seven; 

Those engaged when a seasonal or peak demand period exists, or 
when the requirements of a continuous process, or breakdown, or 
emergency place an unusual temporary burden on the Industry or 
when restriction of hours of skilled workers would unavoidably delay 
other productive workers, provided that the hours worked per man 
per week shall not exceed 48, and that the number of hours worked 
in excess of allowable hours in any 6 months period shall not exceed 
96 (this period has been limited to 72 hours in the Administrative 
Order) ; 

Die and tool makers, hammer crews and maintenance men, who 
may work beyond the maximum hours when additional highly skilled 
w'orkers are not available, and when restriction of their hours would 
unavoidably reduce the hours of other productive workers, pro- 
viding time and one-half shall be paid for overtime. 

The Industry recognizes the desirability of the 8 hour day and 
in so far as it reasonably can will endeavor to employ its labor on 
that basis. 

The Code establishes a 40 cent minimum rate with the exception of 
the following States in which the minimum is 32 cents : North Caro- 
lina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisi- 
ana, Arkansas, and Tennessee. 

Persons employed in clerical, office, engineering, sales (except out- 
side salesmen), or delivery work shall not be paid less than at the 
rate of $15.00 per week. 

Apprentices may be paid a starting rate of 30% of the rate of a 
competently skilled meclianic, provided he shall not be paid less than 

(86) 



87 



24 cents per hour and proviJod that the ratio of new apprentices to 
skilled mechanics shall not be more than one to five. They shall be 
advanced at regular intervals. 

The standard clauses regarding equitable adjustments, employees 
of limited capacity and females performing the same labor as males 
are embodied in this Code, as well as the standard general labor 
provisions. 

GENERAL STATEMENT 

This Industry has been keenly affected by the depression. Esti- 
inated annual sales declined from $98,763,000. in 1929 to §15,446,000. 
in 1932' or 84%. Based on returns from National Recovery Admin- 
istration questionnaires, sales in 1933 amounted to $19,382,000, an 
increase of 25% over the previous year. The following table demon- 
strates clearly the trend of the Industry from 1929 through 1933 as 
to invested capital, production capacity and annual sales : 

Tabij: I. — Invested capital, production capacity and annual sales, 192S-193S 





Col. 1 


Col. 2 


Col. 3 


Col. 4 


Year 


Invested 
capital, 
dollars 
($1,000)' 


Production 

capacity, 

dollars 

($1,000)1 


Annual sales, 
dollars 
($1,000)1 


Annual sales, 
dollars 
($1,000) > 


1929 


$57, 097 
58, 810 
61,-633 
46, 836 
44, 195 


$130, 523 
133, 603 
129, 588 
120, 660 
116, 688 


$98, 763 
55, 588 
27, 231 
15, 446 
' 8, 460 


$94, 473 


1930 




1931 




1932 


15, 554 


1933 . . 


19, 382 







• Source: Code application. 

' Questionnaire returns sent out by National Recovery Administration: 71 concerns reporting 1929; 76 
concerns reporting 1932 and 1933. 
3 G months; estimated for 12 months; $16,920,000. 

In 1929 there were approximately 16,425 persons employed, of 
which 95.3% were factory workers. The decline in factory employ- 
ment has been drastic, dwindling from 15,653 in 1929 to a low of 
3866 or 75% in the fourth quarter of 1932. This total subsequently 
was increased to 7091 in the fourth quarter of 1933. 

The estimated number of man-hours declined from 738,822 in 1929 
to 114,434 in the fourth quarter of 1932, and increased to 253,843 in 
the third quarter of 1933. As average hours worked in November 
1933 were 32.4 per week, an increase in employment under this Code 
will depend almost entirely on improvement in productive activity. 
If production should increase to a point where man-hour require- 
ments would reach 400,000, approximately 10,000 workers would be 
employed, or 63.9% of the 1929 working level. 

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: 



88 

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 hj 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, hj elimi- 
nating unfair competitive practices, by promoting the fullest utiliza- 
tion of the present productive capacity of industries, by avoiding 
undue restriction of production (except as may be temporarily re- 
quired), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating Industry. 

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

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant 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 ; provided, 
however, that the words " ninety-six (96) hours " as contained in 
Section 2 (d) of Article III be deleted and the words " seventy-two 
(72) hours" be substituted therefor; provided further, that Section 
3 of Article IX be deleted ; provided further, that the provisions of 
Section 4 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 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 Na- 
tional Recovery Administration; and provided further, that the 
continued participation of the American Drop Forging Institute 
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. 
Respectfully, 

Hugh S. Johnson, 

Ad'/nini^rator. 

Mat 10, 1934. 



CODE OF FAIR COMPETITION FOK THE DROP FORGING 

INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial R^-' 
covery Act, the following provisions are established as a Code of 
Fair Competition for the Drop Forging Industry, and shall be the 
standard of fair competition for such Industry, and shall be binding 
upon every member thereof. 

Article II — Definitions 

The term " Drop Forging Industry " as u^ed herein includes per- 
sons actively engaged in the manufacture for sale of articles prop- 
erly classified as drop forgings. 

The term " drop forging " as used herein includes the basic cleaned, 
trimmed, and sized metal article (except when made from aluminum 
or copper base metals), initially formed by placing and working hot 
metal in a plastic but solid state between reciprocating die impres- 
sions, forms or cavities in closed dies, and includes such above-de- 
scribed articles made accorcUng to user's specifications prepared 
either with or without subsequent dissimilar operations such as fin- 
ish grinding or machining, except when stocked and catalogued for 
general sale by the maker. 

The term " member of the Industry " includes all those engaged 
in the Industry either as an employer or on his or its own behalf 
other than as an employee. For the purposes of this Code a corpora- 
tion and its subsidiaries and also concerns which in effect are under 
practically the same ownership shall be regarded as one person. 

The term " Institute " as used herein, refers to the American Drop 
Forging Institute. 

The words " neutral agency " shall refer to the neutral agency 
specified in Section 7 of Article VI. 

The term '* person " as used herein includes an individual, firm, 
association, corporation, trust, trustee, or receiver. 

The term " employer " as used herein, means any person engaged 
in the Industry as an employer. 

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

The term " apprentice " as used herein shall mean an employee 
who is regularly engaged in learning a trade under a course of train- 
ing designed to advance him systematically in the various operations 
of such trade to become a competently skilled mechanic. 

The terms " President ", "Act ", and "Administrator " as used 
herein shall mean respectively the President of the United States, 

(89) 



90 

Title I of the National Industrial Recovery Act, and the Adminis- 
trator for Industrial Kecovery. 

Population for the purposes of this Code shall be determined by 
reference to the 1930 Federal Census. 

Article III — ^T^'^orking Hours 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any one week or more than six (6) days in any 
seven (7) dav period, except as otherwise expressly provided in this 
Article III. "^ 

Section 2. (a) The provisions of this Article III shall not apply 
to executives, those employed in a supervisory or administrative 
capacity or their immediate assistants, and salaried technical men 
and field service engineers beino; paid at the rate of Thirty-five 
Dollars ($35.00) or more per week; and 

(b) Outside salesmen; and 

(c) Watchmen, plant engineers and firemen, provided, however, 
that watchmen shall not be permitted to work in excess of fifty-six 
(56) hours per week and plant engineers and firemen shall not be 
permitted to work in excess of forty-five (45) hours per week and 
both watchmen, plant engineers and firemen shall have at least one 
(1) day off in seven (7). 

(d) The foregoing limitations shall not apply when seasonal or 
peak demands, or the requirements of a continuous process, or break- 
down, or emergency, place an unusual and temporary burden on the 
Industry or when restriction of hours of skilled workers would un- 
avoidably delay other productive M'orkers. In any such case such 
number of hours may be worked as are required by the necessities 
of the situation, provided that in no such case shall the hours worked 
by any worker in any one week exceed forty-eight (48) and pro- 
vided further that the number of hours worked by any worker in 
any six (6) months period, in excess of forty (40) hours per week 
(or fifty-six (56) hours for watchmen and forty-five (45) hours 
for plant engineers and firemen) shall not exceed ninety-six (96) 
hours. Any employer may adopt for each location such six-month 
period as is most appropriate for the business there conducted.^ 

(e) Provided further that when additional skilled men are not 
available, die and tool makers, hammer crews and maintenance men, 
at the request of the employer, may work additional hours beyond 
those specified above in this Article III, when restriction of hours 
of these highly skilled workers would unavoidably reduce the hours 
of other productive workere, provided such additional hours shall 
be paid for at the rate of time and one-half. 

Section 3. The Industry recognizes the desirability of and accepts 
the principle of the eight (8) hour working day for labor and in so 
far as it reasonably can, the Industry will endeavor to employ 
its labor on that basis. 

Section 4. No employer shall knowingly permit any emploj'ee to 
work for any time which, when totaled with that already performed 
with another employer or employers exceeds the maximum permitted 
herein. 



* See paragraph 2 of order approving this Code. 



91 

Section 5. Any employer who does the work of an employee shall 
be subject to the provisions of this Code as to hours of labor. 

AimtxE IV — Wages 

Section 1. No employee shall be paid less than at the rate of forty 
cents (40^') per hour except as herein otherwise provided and except 
that the minimum hourly rate of wages for employees in North Caro- 
lina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisi- 
ana, Arkansas and Tennessee shall be thirty-two cents (32^') per 
hour. 

Section 2. No person employed in clerical, office, engineering, sales 
(except outside salesmen), or delivery work shall be paid at a rate of 
less than tifteen dollars ($15.00) per week. 

Section 3. This article establishes a minimum rate of pay which 
shall apply, irrcsjDective of whether an employee is actually com- 
pensated on a time rate, piece work, or other basis. 

Section 4. Apprentices shall be paid a starting rate of not less 
than thirty (30) per cent of the rate paid to a competently skilled 
mechanic in the trade in which the apprentice is being trained and 
prevailing in the shop where the apprentice is employed, provided, 
however, that the starting rate paid to any apprentice shall not be 
less than twenty-four cents (240) per hour. 

Wages paid to apprentices shall be advanced at intervals in meas- 
ured amounts so that the rate for the last period of apprenticeship 
shall not be less than eighty (80) per cent of the rate paid to a 
competently skilled mechanic in the particular trade in the shop 
where the apprentice is employed. 

If an apprentice is paid during hours in which he is solely ob- 
taining school training, or if an apprentice is paid a bonus at the 
end of his apprenticeship, such payments may be credited in 
computing his compensation. 

At no time shall a new apprentice be admitted to apprenticeship 
by any employer when such action will bring the total number of 
such apprentices so employed to a ratio of more than one apprentice 
to five competently skilled mechanics employed by such employer 
in the particular trade in question. 

All apprentice indentures or written contracts shall be submitted 
to the Code Authority for approval and shall be made available 
to the Administrator. 

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 ad- 
justments, and all employers shall within thirty (30) 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 G. 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 a 
code, if the employer obtains from the State authority, designated 
by the U.S. Department of Labor, a certificate authorizing such 



92 

person's employment at such wages and for such hours as shall Jbe 
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. 

Section 7. Minimum rates of pay shall not apply to outside 
salesmen. 

Section 8. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees. 

Article V — General Labor Provisions 

Section 1. No individual under sixteen (16) years of age shall be 
employed in the 'Industry. No individual under eighteen (18) years 
of age shall be employed in processing the products of the Industry. 
An employer shall be deemed to have complied with this Section, 
if it shall have a certificate or permit issued by governmental or 
municipal authority showing that the employee is of the required 

Section 2. As required by Sub-section (a) of Section 7 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 interference, restraint, or coercion of employers of labor 
or their agents in the designation of such representatives or any 
self -organization or any other concerted activities for the purpose of 
collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be required 
as a condition of employment to join any company union, or to 
refrain from joining, organizing, or assisting a labor 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 emplojer shall reclassify employees or duties of 
occupations performed or, engage in any other subterfuge, for the 
purpose of defeating the purposes or provisions of the Act or of this 
Code. 

Section 4. Every employer shall make reasonable provision for the 
safety and health of his employees at the place and during the hours 
of their employment. Standards for safety and health shall be sub- 
mitted by the Code Authority to the Administrator for approval 
within six months after the effective date of this Code. 

Section 5. No provision in this Code shall supersede any laws 
within any State which impose more stringent requirements on em- 
ployers 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 6. Within ten (10) days after the effective date of this 
Code employers shall post copies of Articles III, IV, and V of this 
Code in conspicuous places accessible to employees. 



93 
Article VI — Code Atjthoritt * 

Section 1. The Executive Committee of the Institute shall be the 
temporary Code Authority until the next annual meeting of the 
Institute at which time a Code Authority, consisting of five members, 
one each from five geographical districts, shall be elected by all 
members of the Industry in the respective geographical districts by 
vote weighted by volume and class of business. An}' member of the 
Industry shall be eligible to membership on the Code Authority. The 
geographical districts and the voting power of each member of the 
Industry and other matters relating to the election of the members 
of the Code Authority shall be governed by the By-Laws of the Code 
Authority, as drafted by the temporarj^ Code Authority, provided 
that such geographical districts, voting power, and other matters 
relating to the election of the Code Authority shall not become 
effective until approved by the Administrator. Each member of the 
Code Authority shall serve for one j^ear or until his successor is 
elected and qualifies. Vacancies in the Code Authority shall be filled 
by the majority of the remaining members, but the succeeding mem- 
ber must be from the same geographical district as the former 
member. 

The Administrator may appoint one to three members without vote 
to serve with the Code Authority, (without expense to the Industry, 
unless the Code Authority agrees to pay such expense), in the ad- 
ministration of the Code. Such members when appointed shall be 
given reasonable notice of each meeting of tlie Code Authority and 
may sit at any meeting thereof. 

Section 2. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Author- 
ity shall (1) impose no inequitable restrictions on membership, and 
(2) submit to the Administrator true copies of its articles of associa- 
tion, by-laws, regulations, and any amendments when made thereto, 
together with such other information as to membership, organiza- 
tion and activities, as is necessary to effectuate the purposes of the 
Act. 

Section 3. In order that the Code Authority shall at all times be 
truly representative of the Industry and in other respects comply 
with the provisions of the Act, the Administrator ma}^ 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 witli the provisions of the Act, he may require an 
appropriate modification in the method of selection of the Code 
Authority by the members of the Industry. 

Section 4. Every member of the Industry shall pay to the Code 
Authority his reasonable share of the expenses of administering this 
Code by the Code Authority. Such reasonable share shall be det^er- 
mined b}^ the Code Authority and assessed by it against the members 
of the Industry on the basis of the volume and class of business of 
the various members of the Industry. 

Failure of any member of the Industry to pay any such assessment 
for a period of thirty (30) days after the date on which it shall 

* See paragraph 2 of order approving this Code. 



94 

become payable shall entitle the Code Authority to deprive such 
member of the Industry of all participation in the administration 
and/or any benefits of the Code, and such member of the Industry 
shall continue to be liable for his share of all assessments. 

Section 5. The Code Authority shall have all powers and duties 
conferred upon it by the Code and generally all such other poAvers 
as shall be necessary and proper to enable it fully to administer the 
Code and effectuate its purposes. 

The Code Authority may delegate from time to time any of its 
authorities and duties to persons or committees designated by it. It 
shall have power, from time to time, to revoke any delegation of its 
authority or duties and to change the personnel of such committees, 
provided that nothing contained in this Section (5) shall relieve the 
Code Authority of its duties or responsibilities under this Code, and 
that such agencies shall at all times be subject to and comply with 
the provisions hereof. 

The Code Authority, except as otherwise specified, shall act by 
a majority vote. 

Section 6. The Code Authority may make recommendations to 
the Administrator for the coordination of the administration of this 
Code, with such other codes, if any, as may be related to the 
Industry. 

Tlie Code Authority may recommend to the Administrator further 
fair trade practice provisions to govern members of the Industry in 
their relations with each other or with other industries and may 
recommend to the Administrator measures for industrial planning. 

Section 7. The Code Authority shall have the power to obtain 
from members of the Industry all reports, including statistics, as 
the Code Authority, subject to the disapproval of the Administrator, 
may deem necessary for the administration of this Code. All such 
reports and information shall be made to a neutral, confidential 
agency to be designated from time to time by the Code Authority. 
The neutral agency may make and distribute composites and aver- 
ages, but shall not disclose any individual report except in connec- 
tion with an alleged breach of the Code, or except when such report 
discloses a violation of the Code. All reports and statistics shall be 
in such form and detail as the Code Authority may from time to 
time determine, subject to the approval of the Administrator. 

In addition to the information required to be submitted to the 
neutral agency there shall be furnished to the Administrator such 
information as is 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. 

Section 8. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose ; nor shall 
any member of the Code Authority be liable in any manner to anyone 
for any act of any other member, officer, agent, or employee of the 
Code Authority. Nor shall any member of the Code Authority 
exercising reasonable diligence m the conduct of his duties here- 
under, be liable to anyone for any action or omission to act under 
this Code, except for his wilful misfeasance or nonfeasance. 
. Seciton 9. If the Administrator shall determine that any action 
of a Code Authority or any agency thereof may be unfair or unjust 



95 

or contrary to the public interest, the Administrator may require 
that such action be suspended to afford an opportunity for investi- 
gation of the merits of such action and further consideration by 
such Code Authority or agency pending final action which shall not 
be effective unless the Administrator approves or unless he shall fail 
to disapprove after thirty (30) days' notice to him of intention to 
proceed with such action in its original or modified form. 

Article VII — Costs and Accounting 

Section 1. The Code Authority shall cause to be formulated an 
accounting .system and methods of cost finding and/or estimating 
capable of use by all members of the Industry. After such system 
and methods have been formulated, full details concerning them 
shall be made available to all members as shall full details of all 
changes therein as and when made. Before becoming effective the 
cost system and methods of cost finding and estimating and all 
changes therein shall be filed with the Administrator subject to his 
disapproval within thirty (30) days. Thereafter all members shall 
determine and estimate costs in accordance therewith. 

Section 2. No member of the Industry shall sell or offer to sell 
any product of the Industiy for less than cost of such member deter- 
mined in accordance with the accounting system and methods of cost 
finding and estimating prescribed by the Code Authority, subject 
to such restrictions as the Administrator may deem necessary pro- 
vided that it shall not be a violation of this section to sell or offer 
to sell forgings below cost to meet the price of a member of the 
Industiy whose delivered costs are lower, for forgings of equivalent 
character, cjuality and specifications. 

Section 3. When the Code Authority determines that an emer- 
gency exists in this Industry and that the cause thereof is destruc- 
tive price-cutting such as to render ineffective or seriously endanger 
the maintenance of the provisions of this Code, the Code Authority 
may cause to be determined the lowest reasonable cost of various 
classifications of industry products selected by it, such determination 
to be subject to such notice and hearing as the Administrator may 
require. The Administrator may approve, disapprove, or modify 
the determination. Thereafter, during the period of the emergency, 
it shall be an unfair trade practice for any member of the Industry 
to sell or offer to sell any products of the Industry for which the 
lowest reasonable cost has been determined at such prices or upon 
such terms or conditions of sale that the buyer will pay less there- 
for than said lowest reasonable cost of such products. 

^\Tien 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 4. The Code Authority may from time to time select and 
specify classifications of products as to which any member of the 
Industry may after notice of such determination file with the neu- 
tral agency a price list prepared by such member of the Industry 
showing its current prices as to such classifications of products, but 
if such price list is filed more than ten (10) days after such notice, 
it shall not be effective until seven (7) business days after filing. 



96 

Whenever any new classification of products is added to those for 
which price lists may be filed the Code Authority shall notify all 
members of the Industry known to it. The neutral agency shall 
immediately send notice of such prices to all members of the In- 
dustry known by the neutral agency to be engaged in the manu- 
facture of the classification of products covered thereby. Revised 
price lists may be filed from time to time thereafter with the neutral 
agency by any member of the Industry to become effective upon the 
date specified therein, but such revised price list shall be filed with 
the neutral agency at least seven (7) business days in advance of its 
effective date unless the Code Authority shall authorize a shorter 
period. Similar notice of such revised prices with notice of the ef- 
fective date specified shall be immediately sent to all members of 
the Industry known by the neutral agency to be manufacturing the 
classification of products covered by such changes, any or all of 
whom thereupon may file revisions of their respective price lists 
as to such classification of products, specifying the effective date 
which (if the revised price is not lower than a price then in effect 
or which has been filed within seven (7) business days), may be the 
date when the revised price list first filed shall go into effect. All 
price lists in effect shall be available to all interested parties. No 
member of the Industry may sell, or offer to sell, any forging in 
any such classification of products for less than the lowest price 
shown on a price list of such classification of products which is in 
effect and on file with the neutral agency but may sell at the lowest 
listed price without regard to cost. However, no member shall 
initiate any listed price less than his own costs determined by the 
accounting system and cost finding methods herein prescribed. The 
Code Authority may specify the form of price lists and the in- 
formation to be included therein.^ 

Section 5. The Code Authority shall have power on its own 
initiative, or on the complaint of any member of the Industry, to 
require any member of the Industry against whom complaint has 
been made to furnish such information concerning the cost of any 
product as the Code Authority shall deem necessary or proper for 
such purposes. 

Section 6. The sale price for the purpose of this Code shall be 
the net price after concessions of every character, including cash 
discounts. 

Section 7. No order for fabrication at one setting of the dies in 
quantities less than those stated in the contract of sale shall be 
accepted without adjusting the price to cover the increased cost of 
the smaller quantity. 

Section 8. A contract by a person in the Industry to manufacture 
or fabricate material owned by others shall be deemed a contract 
of sale in interpreting the provisions of this Code. 

Section 9. Whenever a sale requires original dies and/or special ' 
tools (i.e., original with or new to the company quoting), the dies 
and special tools shall be paid for by the purchaser at not less than 
the full estimated cost. The charge for new dies shall be in addition 
to the die maintenance item included in the cost of forging. 

» See paragraph 2 of order approving this Code. 



97 
Article VIII — Trade Practice Rules 

Section 1. For all pui-poses of the Code, the acts described in this 
Article shall constitute unfair practices. Any member of the In- 
dustry who shall, directly or indirectly, through any officer, employee, 
agent or representative, knowingly use, employ or permit to be em- 
plo3'ed an}^ of such unfair practices shall be guilty of a violation of 
the Code. 

Section 2. 

Rule 1. Offering inducements to bring about cancelation or reduc- 
tion in price or quantity in contracts of sale already made with other 
persons in the Industry. 

Rule 2. No member of the Industry shall release anj^ person from 
all or any portion of a contract for the sale of any products of the 
Industry unless the purchaser pays all unabsorbed die costs and 
all loss on material purchased to fill the cancelled portion of the 
contract, including material wholly or partially fabricated. 

Rule 3. The making or giving to any purchaser of any guarantee 
or protection in any form against decline in price. 

Rule 4. Selling or contracting to sell any product under any 
description which does not fully describe it in terms customarily 
used in the Industry. 

Rule 5. Making an invoice which is false or misleading in any 
particular. 

Rule 6. Partaking in or aiding or abetting in any manner any 
violation 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 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. 

Section 2. This Code, except as to provisions required b}^ the Act, 
may be modified or amended from time to time, such modifications 
or amendments to be based upon application by the Code Authority 
to the Administrator and such notice and hearing as he shall specify, 
and to become effective on approval of the Administrator. 

Section 3. No person consenting to this Code shall be held to have 
consented to any modification hereof.* '~ 

Article X — Monopolies 

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

Article XI — Effective Date and Termination 

This Code shall become effective on the second Monday after its 
approval by the Administrator, and shall continue in effect until 

* Deleted. See paragraph 2 of order approving this Code. 



98 

June 15, 1935, unless prior thereto Title I of the National Industrial 
Recovery Act ceases to be in effect. Such termination shall not 
relieve any member of the Industry from the payment of any unpaid 
assessment. 



Approved Code No. 423. 
Registry No. 1110-02. 



o 



Approved Code No. 424 
CODE OF FAIR COMPETITION 

FOR THE 

SPICE GRINDING INDUSTRY 

As Approved on May 11, 1934 



ORDER 



ArpRO\'iNG Code of Fair Competition for the Spice Gfjndinq 

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

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. G543-A, 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 thereof shall not become effective, and they are hereby 
stayed, for a period of ten (10) days in order to afford consideration 
of the objections of anj^ 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. 

Hugh S. Johnson, 
Administrator for Industrial Recovery, 

Approval recommended : 
Armin W. Riley, 

Division Administrator. 

Washington, D.C, 

May 11, 1931^. 

58378° 544-65 34 (99) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the hearing of the Code of Fair Com- 
petition for the Spice Grinding Industry held at the Lafayette 
Hotel, Washington, D.C., Thursday, November 2, 1933. By Execu- 
tive Order of January 8, 1934, the jurisdiction over this Code was 
re-transferred from the Secretary of Agriculture to the Administra- 
tor for Industrial Recovery. 

Certain changes have been made in the Code to conform to N.R.A. 
policy, but these changes are not materially in conflict with the 
transcript of the record of Public Hearing. 

GENERAL STATEMENT 

From available data, which is meager and lacking in definiteness, 
the Spice Grinding Industry, as a separate industry, gives employ- 
ment to not more than 600 or 700 unskilled employees with an out- 
lay for labor estimated at $2,000,000 annually. 

The wholesale value of the product of the Spice Grinding Indus- 
try at the present time is considerably less than $15,000,000. The 
Census of Manufactures data does not separate spice grinding from 
coffee roasting, mustard, peanut butter, mayonnaise, flavoring ex- 
tracts, etc., all of which products are or will be subject to separate 
codes of fair competition. It is estimated that spice grinding as 
a separate industry measured by the volume of business done, fornx"? 
only about three per cent of the total turned out in combination 
with other products manufactured in the same plants. 

The working hours in the Spice Grinding Industry under the 
operation of this Code will be reduced from an average varying 
from forty -six (46) to fifty-five (55) working hours per week to 
forty (40) working hours, and will result in a probable increase in 
employment to the extent of 100 to 125 workers, including office and 
technical employees. 

It is difficult to arrive at a fair approximation of what percentage 
of increase the Code will effect in total amount of wages paid by 
the industry, although an increase of twenty-five per cent (25% ) 
would seem to be a reasonable approximation. 

HOURS AND WAGES 

The Code provides for a maximum of forty (40) working hours 
per week, eight (8) hours a day six (6) days in any seven (7) day 
period. There are the usual exemptions in the case of executives, 
managerial or technical employees who regularly receive not less 
than thirty-five dollars ($35.00) per week. Watchmen are limited 

(100) 



101 

to fifty-six (56) hours per week, while chauffeurs and deliverymen 
are pormitted to work not exceeding forty-eight (48) hours per week. 

In the matter of hours, provision is made in the Code to take 
care of peak production, inventory, financial closing periods and 
other unusTial conditions beyond the control of the employer, by a 
rational tolerance of excess permissive hours. Such overtime shall 
not exceed six (6) hours in any week except in cases of emergency 
repair work involving breakdown or protection of life or property, 
and all such overtime must be paid for at the rate of one and one- 
third times the normal rate. The premium for overtime should 
be a sufficient penalty to prevent abuse of the privilege of exceeding 
the maximum hours. 

Persons emploj^ed in clerical, accounting, or other office work are 
to be paid at not less than the rates of from fourteen to sixteen dollars 
($14.00 to $16.00) per week depending on the population of the city 
in which the industry is operating. Office boys and messengers may 
be paid at a rate below the minima vrith the restriction that not more 
than ten per cent (10%) of the total number of office employees can 
be so classified. Watchmen are to be paid not less than eighteen 
dollars ($18.00) per week. Male employees not included in the 
above classifications are to be paid at a rate of not less than forty 
cents (40v') per hour; female employees at not less than thirty-two 
and one-half cents (321/^0) per hour, except in the states (commonly 
referred to as the South) of Virginia, North Carolina, South Caro- 
lina, Tennessee, Alabama, Georgia, Florida, Mississippi, Louisiana, 
Texas, Arkansas, Oklahoma, and Kentucky. In these states male 
employees are to be paid at not less than a minimum of thirty-five 
cents (35(^) per hour; females twenty-seven and one-half cents 
(271/2^) per hour. 

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

"I find that: 

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

"(b) Said Industiy 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- 



102 

section (b) of Section 10 thereof; and that the applicant association 
is a trade association truly representative of the aforesaid Industry; 
and that said association imposes no inequitable restrictions on 
admission to membership therein. 

"(d) The Code is not designed to and 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 the Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dministrator. 

Mat 11, 1934. 



CODE OF FAIR COMPETITION FOR THE SPICE GRIND- 
ING INDUSTRY 

Article I — Purposes 

To effectuate the policies declared by Title I of the National In- 
dustrial Recovery Act, this Code is hereby established as a Code of 
Fair Competition for the Spice Grinding Industry, and shall be the 
standards of fair competition for such Industry and shall be bind- 
ing upon every member thereof. 

Article II — Definitions 

Section 1. The terms " President ", "Act ", and "Administrator " 
mean respectively the President of the United States, Title I of the 
National Industrial Recovery Act, and the Administrator for In- 
dustrial Recovery. 

Section 2. The terms " Spice Grinding Industry " and " Indus- 
try " mean the preparation of spices (including cleaning, shelling 
and/or grinding and/or drying and grinding) and the packing and 
sale by the preparer or packer thereof, for use as food seasoning 
or in food seasoning preparations. 

Section 3. The term "' Spices " as used herein means aromatic 
vegetable substances intended for use as food seasoning or in food 
seasoning products. 

Section 4. The term " Member of the Industry " as used herein 
includes, but without limitation, any individual, partnership, asso- 
ciation, corporation, or other form of enterprise engaged in the in- 
dustry, whether as an employer or on his or its own behalf. 

Section 5. The term " Code Authority " as used herein shall mean 
the agenev which shall administer the Code under the provisions of 
Article VIII of this Code. 

Section 6. The term " Employee " as used herein shall mean and 
include any and all persons engaged in the industry, however com- 
pensated, except a member of the Industry. 

Section 7. The term " Employer " as used herein shall mean and 
include any one by whom any employee is compensated or employed. 

Section 8. The term " Watchmen " as used herein shall mean em- 
ployees who spend not less than ninety percent (90%) of their work- 
ing hours in watching and guarding the premises or establishment 
of a member of the Industry. 

Section 9. The term " Outside Salesman " as used herein means 
any salesman who spends at least sixty percent (60%) of his working 
hours outside of the establishments or any branch thereof of his em- 
ployer, and who does not regularly deliver merchandise. 

Section 10. The term " Buyer " as used herein shall mean any 
commercial buyer as distinguished from an ultimate consumer buyer. 

Section 11. Population for the purposes of this Code shall be 
determined by reference to the latest Federal Census. 

(103) 



104 

Article III — Maximum Hours 

Section 1. No employee shall be permitted to work more than 
forty (40) hours in any week, nor more than eight (8) hours in any 
day, nor more than six (6) days in any seven (7) day period, except 
as herein otherwise provided. 

(a) The provisions of this Section shall not appl}^ to persons 
employed in a managerial, executive, or technical capacit3% who 
regularly receive not less than thirty-five dollars ($35.00) per week, 
or to outside salesmen. 

(b) The provisions of this Section shall not apply to watchmen, 
provided that they shall not be permitted to work in excess oi 
nfty-six (56) hours per week. 

(c) The provisions of this Section shall not apply to chauffeurs 
and deliverymen and employees engaged in shipping work directly 
connected with delivery; provided that they shall not be permitted 
to work in excess of forty-eight (48) hours per week. 

Section 2. In cases of unforeseen peak production, inventory 
periods, financial closing periods, emergency repair and maintenance 
work, and other unusual conditions beyond the control of the em- 
ployer, employees may be permitted to work in excess of the number 
of working hours per day or per week provided in this Code for the 
class of work performed by such employees. Such overtime shall 
not exceed six (6) hours in any one week, except in cas-es of emer- 
gency repair and maintenance work involving break-downs or pro- 
tection of life and property. Such overtime shall be compensated by 
at least one and one-third times the normal rate. Office workers 
receiving not less than thirty-five dollars ($35.00) per week may be 
permitted to work additional time without payment for overtime 
beinw required. Reports shall be made monthly to the Code Au- 
thority, stating the number of hours overtime worked under this 
Section, together with the rates of pay therefor. 

Akticle IV — Wages 

MINIMUM WAGES 

Section 1. No person employed in clerical, accounting or other 
office work shall be paid less than at the rate of sixteen dollars 
($16.00) per week in cities of over 500,000 population or in the imme- 
diate trade area thereof, or less than at the rate of fifteen dollars 
($15.00) per week in cities between 250,000 and 500,000 population 
or in the immediate trade area thereof, or less than at the rate of 
fourteen dollars ($14.00) per week in other places, except that office 
boys and messengers may be paid at a rate below the above minima, 
provided that in no event shall office boys and messengers be paid 
at a lower rate than two dollars ($2.00) below the above minima, 
and provided, further, that where more than one employee is clas- 
sified and compensated as an office boy or messenger, not more than 
ten percent (10%) of the total number of office employees shall be 
so classified in each establishment in the Industry. 

Section 2. No male employee other than those covered in Sections 
1 and 3 of this Article shall be paid at a rate of less than forty cents 



105 

(40^) per hour, and no female employee other than those covered in 
Section 1 shall be paid at a rate of less than thirty-two and one-half 
cents (321^^) per hour, except that male employees may be paid at 
not less than the rate of thirty-five cents (35^) per hour, and female 
employees may be paid at not less than the rate of twenty-seven and 
one-half cents (271/2^) per hour in the following states: Virginia, 
North Carolina, South Carolina, Tennessee, Alabama, Georgia, 
Florida, Mississippi, Louisiana, Texas, Arkansas, Oklahoma, and 
Kentucky. 

Section 3. Xo watchman shall be paid at a rate of less than eight- 
een dollars ($18.00) for a fifty-six (56) hour week. 

Section 4. This Article establishes a minimum rate of pa}^ which 
shall apply, irrespective of whether an employee is compensated on 
a time rate, piece-work, or other basis. 

Section 5. Female employees performing substantially the same 
work as male employees shall be paid at the same rate of pay as malo 
employees: provided that, when male employees perform work 
customarily done by female employees only during the 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 emplyoees. 

Section 6. At least one and one-third times the normal rate shall 
be paid for all time worked (except by watchmen, and those em- 
ployed in a managerial, executive, or technical capacity as set forth 
in subsections (a) and (b) of Section 1, Article III) on Sundays 
and the following holidays: Christmas Day, Thanksgiving Day, 
George Washington's Birthday, Labor Day, July Fourth, New 
Year's D^j. and such other holidays as may be proclaimed b}' the 
President of the United States. 

Section 7. Whenever the adoption of the minimum rates of this 
Code result in lessening the differential between unskilled labor and 
skilled occupations, wages above the minimum shall be increased so 
as to maintain the differentials existing on July 15, 1933. 

In no case shall weekly wages be reduced as a result of the adoption 
of this Code, except that where hours are reduced in excess of 16%% 
under the average weekly working hours worked by said employee 
on July 15, 1933, the hourly wage rate of said employee shall bo 
equitably readjusted upward, provided that in every such case the 
hourly wage rate of said employee shall be increased by at least 
20% over that received by said employee on July 15, 1933. In no 
case shall hourly wage rates be reduced. 

Section 8. 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 L^nited 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. 

Section 9. Wages of employees shall be exempt from any fines; 
and from charges or deductions except charges or deductions for 



106 

employees' voluntary contributions for compensation, insurance or 
benefit funds, or charges or deductions required by mandatory pro- 
visions of law; and agreements of hire shall provide that wages 
shall not be withheld unless the employer shall have been served 
with legal process lawfully requiring such withholding:. Deductions 
for other purposes not heretofore stated may be made only when 
so authorized by the employee in writing. 

Article V — General Labor Provisions 

CHILD LABOR 

Section 1. No person under sixteen (16) years of age shall be 
employed in the Industry. No person under eighteen (18) years 
of age shall be employed at operations or occupations which are 
hazardous in nature or dangerous to health. The Code Authority 
shall submit to the Administrator within ninety (90) days after 
the effective date of this Code a list of such operations or occupa- 
tions. 

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

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

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

Section 3. 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 4. 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 5. No provision in this Code shall supersede any law which 
imposes on employers more stringent requirements as to age of em- 
ployees, wages, hours of work, or as to safety, health, sanitary or 
general working conditions, or insurance, or fire protection, than are 
imposed by this Code. 

Section 6. No employer shall knowingly permit any employee to 
work for a total number of hours in excess of the number of hours 
prescribed for his occupation for each week and day whether em- 
ployed by one or more employers. 

Section 7. All employers shall post and keep posted copies of this 
Code in conspicuous places accessiole to all employees. Every mem- 



107 

ber of the Industry shall comply with all rules and regulations rela- 
tive to the posting of provisions of Codes of Fair Competition which 
may from time to time be prescribed by the Administrator. 

Article VI — Prices and Discounts 

Section 1. Open Pnccs. — (a) Each member of the Industry shall 
file with the Code Authority, at its office, within ten (10) daj^s after 
the Code Authority shall have been constituted, a complete schedule 
of all of such members' prices for all spices for sale by such member 
of the Industry, together with all discounts, delivery charges, if any, 
and full terms and conditions of sale of any kind based upon such 
prices. The Code Authority shall make such schedules available to 
all buyers and to all members of the Industry, and in making them so 
available, shall make no interpretations or comment thereon, 

(b) Revised schedules of prices, discounts, delivery charges, if any, 
terms and conditions of sale, may be filed from time to time there- 
after with the Code Authority by any member of the Industry. 

(c) 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, terms and conditions of sale, together with delivery 
charges, if any, then on file as effective, by such member of the Indus- 
try with the Code Authority. 

(d) Every member of the Industry shall make available for the 
equal information of all buyers his schedule of prices, delivery 
charges, if any, discounts and full terms and conditions of sale. 

Section 2. Unearned Service Payments. — No member of the In- 
dustry shall pay a buyer for a special advertising or other distribu- 
tion 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 paj^ment 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 the buyers of 
the same quantity and/or distribution class 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 Code Authority shall be empowered 
to request a member of the Industry to report such contracts made 
by him and/or to request a member of the Industry to produce a copy 
thereof for inspection. 

Section 3. No member of the Industry shall discriminate in price 
among buj^ers. The term " discriminate in price " as used in this 
Section means directly or indirectly charging a different price to 
buyers of the same quantity and/or distribution class who are located 
in the same competitive market, or the making of any price to any 
buj^er which does not strictly conform to the open price schedule filed 
as provided for in Section 1 of this Article. 

Section 4. No member of the Industry shall allow a cash discount 
which is not duly earned in accordance with the terms of cash dis- 
count as filed under the provisions of Section 1 of this Article. 

Section 5. No member of the Industry shall offer or make a quan- 
tity price and/or quantity discount unless it is a genuine quantity 



108 

price and/or quantity discount and unless it is equally available to 
all 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 reasonabW measured by a substantial difference in 
the quantity sold and delivered. 

Section 6. 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 
the Industry, such determination to be subject to such notice and 
hearing as the Administrator may require. The Administrator may 
approve, disapprove, or modify the determination. Thereafter, dur- 
ing the period of the emergency it shall be an unfair trade practice 
for any member of the Industry to sell or offer to sell any products of 
the Industry, for which the lowest reasonable cost has been 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 reviev\'ed. 

Article VII — Uxfair Trade Practices 

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

(a) To falsely or deceptively advertise any spice; or to use a 
deceptive container; or to give short weight or short measure or 
short count. 

(b) To withhold from, or to insert in any invoice, statements that 
make it a false record, wholly or in part, of the transaction repre- 
sented on the face thereof. 

(c) To quote a fictitious price; or to invoice a false price; or to 
make any price statement or price representation which is false or 
fraudulent. 

(d) To compel the purchase of one product in order to purchase 
or obtain another. 

(e) To substitute without due notice to and consent of the buj'er 
another product, or a product of a different grade, in place of the 
product ordered by him. 

(f) To offer or to give prizes, premiums, gifts or anything of 
value in connection with, or as an inducement to, the sale of products 
of the Industrj'^, except such prizes, i^remiums and gifts as are set 
forth in the open price schedule and given in compliance therewith. 

(g) To permit to be given or directly offer to give, anything of 
value for the purpose of influencing or rewarding the action of any 
employee, agent or representative of another in relation to the busi- 
ness of the employer of such employee, the principal of such agent 
or the represented party, without the knowledge of such employer, 
principal or party. This provision shall not be construed to pro- 
hibit free and general distribution of articles commonly used for 
advertising except so far as such articles are actually used for com- 
mercial bribery as hereinabove defined. 



109 

(h) To offer to sell or to sell any spice, knowing that the price 
thereof to the buyer will actually be below the applicable price as 
stated in the effective price schedule filed in accordance with the 
provisions of Section 1 of Article VI, whether such lower price to 
the buj^er is effected through a diversion of compensation paid by the 
member of the Industry to an employee or otherwise. 

(i) To make any secret rebates, secret allowances or secret conces- 
sions of any kind, including rebates by way of special services, dis- 
counts, absorption of transportation costs or advertising allowances, 
or any other allowances secretly made. 

Article VIII — Organization, Powers and Duties of the Code 

Authority 

Pabt a 
organization and constitution 

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

(a) Five (6) members of the Code Authority shall be elected by 
those members of the Industry who are members of the Spice 
Grinders Section of the American Spice Trade Association. 

(b) Two (2) members of the Code Authority shall be elected by 
those members of the Industrv who are not members of the Spice 
Grinders Section of the American Spice Trade Association. 

(c) The election provided for in subsections (a) and (b) sliall 
be conducted by the Spice Grinders Section of the American Spice 
Trade Association; and notice thereof shall be given by said 
Association to all members of the Industry b}' registered mail at 
least fifteen (15) days before the date of said election. The Asso- 
ciation failing to act within thirty (30) days after the effective 
date of this Code, the Administrator may appoint the membership 
of the Code Authority provided for in said subsections (a) and 
(b), or in either of them. 

(d) In all elections of members provided for in subsection (a) of 
this Section, each member of the Industry who is a member of the 
Spice Grinders Section of the American Spice Trade Association 
shall be entitled to one (1) vote for each of the five (5) members 
there provided for. 

(e) In all elections of members provided for in subsection (b) of 
this Section, each member of the Industry not a member of the 
Spice Grinders Section of the American Spice Trade Association 
shall be entitled to one (1) vote for each of said members in said 
Section provided for. 

(f ) The members of the Code Authority shall hold office for one 
(1) year or until their respective successors are elected and qualified. 

(g) Any vacancies occurring in the membership of the Code 
Authority shall be filled by election in the same manner as the 
member whose vacancy is to be filled was elected. 

(h) In all elections of members of the Code Authority, voting 
may be in person, by mail or by proxy. 



110 

Section 2. In addition to the membership of the Code Authority 
as provided in Section 1 of this Article, there may be from one (1) 
to three (3) members of the Code Authority, without vote, to be 
appointed by the Administrator to serve for such terms as he may 
designate. 

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 article 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 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 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 this Code and sustaining their reasonable share 
of the expenses of its administration. Such reasonable share of the 
expenses of administration shall be determined by the Code Author- 
ity subject to review by the Administrator, on the basis of volume of 
business and/or such other factors as may be deemed equitable. 

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

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 such information and re- 



Ill 

ports as the Administrator nu\y deem necessary for the purposes 
recited in Section 3 (a) of the Act, which information and reports 
shall bo submitted by members to such administrative and/or gov- 
ernment agencies as the Administrator may designate. Nothing in 
this Code shall relieve any member of the Industry of any existing 
obligations to furnish reports to any government agency. No indi- 
vidual reports shall be disclosed to any other member of the Industry* 
or any other party except to such governmental agencies as may 
be directed b3\the Administrator. 

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

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

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

(g) To cooperate with the Administrator in regulating the use of 
any N.R.A. insignia solel}' by those members of the Industry who 
have assented to, and are complying with, this Code, 

(h) To elect a representative to serve on any coordinating or ad- 
visory committee which may subsequently be established for the 
entire Grocery Manufacturing Industry, and to cooperate with any 
such committee with respect to any functions that may be delegated 
to it by the Administrator. 

(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 industries, with a view to formulating fair 
trade practices to govern the relationship between production and 
distribution employers of such trades/industries; to the end that 
such fair trade practices may be proposed to the Administrator 
as amendments to this Code, and to such other codes of related 
trades/industries. 

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

(k) 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 of the Industry. Thereafter all members of the Industry 
shall determine and/or estimate costs in accordance with the prin- 
ciples of such methods. 

Sectiox 2. 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 the investiga- 
tion of the merits of such action and further consideration by such 
Code Authority or agency pending final action, which shall not be 



112 

effective unless the Administrator approves or unless he shall fail to 
disapprove after thirty (30) day's notice to him of intention to pro- 
ceed with such action in its original or modified form. 

Section 3. The Code Authority shall maintain accurate book 
records of all receipts, disbursements, assets and liabilities, which 
shall be open at all times during the usual hours of business to the 
inspecton of the Administrator or his duly authorized representative. 

Section 4. The Code Authority may recommend to the Adminis- 
trator amendments or modifications which shall become part of this 
Code after approval by the Administrator after such notice and hear- 
ing as he shall prescribe. 

Article IX — Coordination with Other Codes 

Section 1. The Spice Grinding Industry, recognizing the value 
of uniform basic trade practice provisions for all food and grocery 
manufacturing codes, pledges cooperation in securing the amendment 
of any trade practice provisions in this Code which may be in con- 
flict with trade practice provisions approved by the President or 
suggested by the Administrator for the entire food and grocery man- 
ufacturing Industry. 

Article 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 enterprises. 

Article XI — Modification 

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

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

Article XII — EFrECTi\T3 Date 

Section 1. This Code shall become effective on the date specified 
in the Order of Approval. 

Approved Code No. 424. 
Registry No. 142-01. 

O 



Approved Code No. 425 

CODE OF FAIR COMPETITION 

FOR THE 

MANGANESE INDUSTRY 
As Approved on May 11, 1934 



ORDER 



Code of Fair Competition for the Maxganese 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 Manganese 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 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 Indtbstrial Recovery. 

Approval reconnnended : 
K. M. Simpson, 

Division Ad'ininistrator. 

Washington, D.C, 

May lU 193 If. 

58379° 544-C6 34 (113) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The original Code of Fair Competition for the Manganese 
Industry was submitted on August 2-ith, 1933, by the American 
Manganese Producers Association, an unincorporated membership 
society organized in 1927, representing 90% of the known members 
of the Industry in volume of production. Several revisions of the 
Code were made prior to the public hearing held on January 26, 
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 Manganese Industry includes the development, mining, mill- 
ing, concentrating and beneficiating of domestic ores. About 95% 
of the manganese production is consumed in ferrous metallurgy 
and the remainder in the dry battery and chemical industries. 

Before the World War the domestic production of manganese 
ore was very small compared with the domestic consumption. The 
average annual output from 1900 to 191-4, inclusive, was about 5,000 
long tons; imports during the same period averaged about 223,000 
long tons. At the time of the World War the requirement for 
manganese in the United States expanded, and some of the trans- 
port of imported ore was seriously menaced. Domestic production 
grev>- under the impetus of exceptionally high prices and urgent gov- 
ernmental requests for increased output. In 1918 it reached a peak 
of nearly 306.000 tons, which was about 38%; of the total manganese- 
ore requirements in the United States during that year. This 
state of affairs terminated abruptly with the signing of the armistice. 
Prices declined immediately, and many war-time contracts were 
cancelled; in consequence much domestic production became un- 
profitable, and a number of producers who had developed properties 
at a. considerable cost, expecting the war to last much longer, faced 
heavy losses. 

Under postwar conditions domestic production dwindled rapidly 
and by 1922 amounted to only 13,000 tons. Meanwhile, a demand 
for tariff protection had developed. Proponents of the tariff claimed 
that a domestic suppl}^ of such an important raw material as man- 
ganese ore was essential to the country in war and that the experi- 
ence during the World War indicated that a substantial manganese- 
ore industry could be developed under proper tariff protection. 

The tariff act of 1922, which became effective during the latter 
part of that year, established a duty of one cent per pound of con- 
tained manganese on imported ores containing in excess of 30% of 
manganese. The effect of this act was immediately reflected in the 
domestic price of manganese ore. Domestic production of man- 

(114) 



115 

ganese ore rose to a postwar peak of 98,000 tons in 1925, which was 
equivalent to about 14% of the domestic requirements in that year. 
Nearly half of the 1925 output was derived from the rhodochrosite 
ores of the Ikitte district, and about a fifth of the total represented 
the production of battery ores from the Phillipsburg (Mont.) dis- 
trict. Imports increased from 425,000 tons in 1922 to 615,000 tons 
in 1925. 

The increase in domestic production from 1922 to 1925 was ac- 
companied by a steady increase in price, but by 1925 the production 
of foreign ores had increased to such an extent that there was severe 
competition for the world's markets and the price of manganese 
began a steady decline. 

While the tariff was being considered in 1929, Congress was re- 
quested by the manganese-ore producers to increase the tariff on 
manganese ore and to extend the duty to ores containing less than 
30% of manganese. It was claimed that the domestic industry had 
progressed under the protection granted it in 1922 and that further 
protection was needed to put the processes being developed to treat 
low-grade ores on a connnercial basis. Opponents of the tariff 
contended that the record of production under seven years of pro- 
tection proved the contention made by them in 1922 — that the known 
reserves were insufficient to provide an adequate supply of man- 
ganese, even with tariff protection. They also contended that the 
imposition of high duties to sustain production from low-grade ore 
bodies was uneconomical and placed an unnecessary burden on the 
steel industry. The price of manganese continued to decline steadily 
during 1929.' 

The Manganese Industr}^ enjoj-s a unicpie position in that its 
product is an essential constituent in the manufacture of steel. A 
substitute may be developed ultimately, but under existing prices 
and metallurgical technique there is none. The ratio of manganese 
consumption to steel production is about 14 pounds to one ton. 

For use in ferrous metallurgy, manganese is converted into various 
alloys; ferromanganese, containing 78% to 82% manganese; spiegel- 
eisen, containing 18% to 22% manganese, silicomanganese, containing 
55% to 70%- manganese; and silicospiegel, containing 18% to 22% 
manganese. About 90% of the manganese consumed is in the form 
of ferromanganese. 

The Industry is confronted with the problem of reviving the pro- 
duction of low grade manganese ores and the attempt to develop high 
grade ores. It is generally conceded that the reserves are inadequate 
to develop a representative manganese industry in this country. 
Efforts have been made to beneficiate low grade ores. The costs of 
production, plus subsequent treatment, are too high to meet competi- 
tion of foreign ores even with an increase in the present tariffs. 

Investigations indicate that the domestic manganese industry is 
incapable of producing a substantial amount of ferro-manganese 
grade ores at world prices. 

The tariff acts of 1922 and 1929 have done but little to stimulate a 
domestic manganese industry. 

Because of the stagnant condition of the industry, an industry in 
the strict interpretation of the act does not exist. Because of the 



116 

fact that manganese does occupy a pivotal position as an emergency 
war material, and also because of the fact that the industry did, 
under stress of war demands and high prices, produce up to 38% of 
our requirements, the sponsor's application for a Code of Fair Com- 
petition for the Manganese Industry has been granted. 

Article I. Purposes. States the purpose of the Code. 

Article II. Definitions. Accurately defines specific t^rms ap- 
plicable to the Manganese Industry as used in this Code. 

Article III. Hours. The maximum hours are limited to forty 
hours per week for employees engaged in the processing of products 
and labor incident thereto. Watchmen shall be permitted to work 
either 81 hours in a two week period or 5G hours in any one week 
according to the nature of their responsibilities, v.ith one day rest in 
every seven. Office, salaried and other employees not covered above 
who receive less than $35.00 per week shall not be permitted to work 
in excess of an average of forty hours per week during any one 
month, nor more than 48 hours in any one week. Employees engaged 
in an executive, managerial or supervisory capacity who receive not 
less than $35.00 per week are not subject to any hourly limitations. 
The maximum hours shall not apply in cases of emergencies or repair 
where safety of life or health or protection of property necessitates 
longer hours. 

Article IV. Wages. The minimum wages for employees engaged 
in the processing of products or any labor incident thereto is at the 
rate of 400 per hour above ground and 47%^ per hour underground 
in the Northwestern Section, and 40^ per hour above ground and 450 
per hour underground in the Northern Section, and 300 per hour 
above ground and 350 per hour underground in the Southern Section 
except as otherwise provided. The minimum rates shall be ccmstrued 
as the hiring rates applying to common or totally unskilled labor; 
and all other classes of labor, including piece workers, shall be com- 
pensated at rates above these minimums. The established minimum 
rate of pay for the work performed in any pay period shall apply 
irrespective of whether an employee is actually compensated on a 
time rate, piece rate, or other basis. Provision is also made for the 
employing of handicapped persons. No person employed in clerical 
or office work shall be paid less than at the rate of $15.00 per week, 
except that office boys and girls and messengers ma}' be paid at a rate 
not less than 80% of the minimum paid office employees. 

Article V. General Labor Provisions. Provides that no employer 
shall employ any person under 16 years of age and that no person 
under 18 years shall be employed at operations or occupations which 
are hazardous in nature or dangerous to health. This Article also 
sets forth the mandatory provision respecting the rights of employees 
to organize and bargain collectively. This Article also provides for 
matters having to do with reclassification of employees, standards for 
safety and health, the observance of State laws and the posting of 
complete copies of this Code so that they are accessible to employees. 

Article VI. Administration. Establishes a Code Authority con- 
sisting of nine members, five of whom shall be the executive com- 
mittee of the American Manganese Producers Association. Four 
other members of the Industry (not members of the executive com- 



117 

mittee) truly representative of the virions interests of the inchistry to 
be elected by a fair method of selection, approved by tlie Adminis- 
trator. In addition to the organization of the Code Authority, the 
powers and duties thereof are outlined in this Article. 

Article VII. Marketing and Trade Practice Rules. Sets forth 
fair trade practices for the industry, as also setting forth open price 
schedules which are effective immediately after filing. 

Article VIII. Export Trade. No provision of this Code relating 
to terms of selling or prices, shipping or marketing, shall apply 
to export trade or sales or shipments for export trade. 

Article IX. Modification. This Code and all its provisions 
thereof are expressly made subject to the right of the President, in 
accordance with Sub-section (b) of Section 10 of the Act, from 
time to time to cancel or modify any order, approval, license, rule 
or regulation issued under said Act. Provision is made that an 
amendment may be proposed by any interested party. Provision is 
also made so that the Code Authority may make recommendations 
for modifications of this Code to the Administrator which shall be- 
come effective as a part of this Code upon approval by the Adminis- 
trator after such notice and hearing as he may prescribe. 

Article X. No provision of tliis Code shall be so applied as to 
permit mono^^olies or monopolistic practices or to eliminate, oppress 
or discriminate against small enterprises. 

Article XI. Effective Date. This Code becomes effective begin- 
ning 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 fortli and on the basis of all the proceed- 
ings in this matter; 

I find that : 

(a) Said Code is well designed to jn-omote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general w'elfare 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, b}^ 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 
i-equired), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, b}' improving standards of labor, and 
by otherwise rehabditating industr}'. 

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

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Sub-section (a) of Section 3, Sub-section (a) of Section 7, and 
Sub-section (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. 



118 

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

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

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

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
May 11, 1934. 



CODE OF FAIR COMPETITION FOR THE MANGANESE 

INDUSTRY 

AktICLE I PlTBPOSES 

To cfFectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is established as a Code of Fair Competition 
for the Manp:anese Industry and its provisions are the standards of 
fair competition for such Industry and are binding; upon every 
member thereof. 

Article II — Definitions 

AVherever 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 " as used herein means the National 
Industrial Recovery Act approved by the President June 16, 1933. 

Section 3. The term "Administrator " as used herein means the 
Administrator for Industrial Recover}^ 

Section 4. The term " Member of the Industry " as used herein 
includes all those engaged in the Industry either as an employer or 
on his or its own behalf. 

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, except a member of the Industry. 

Section 6. The term " Employer " as used herein means anyone 
by whom such employee is emploj^ed or compensated. 

Section 7. The term " Industry " as used herein includes the 
mining in the United States, including territories, of Manganese Ore 
and/or the concentrating of and/or beneficiating of ores in which 
manganese constitutes the principal recoverable constituent of eco- 
nomic value, and the original sale of such products by the one 
producing and,/or manufacturing the same either directly or 
indirect!}' through subsidiary and/or affiliated companies. 

Section 8. The term "Association " as used herein includes the 
American ^Manganese Producers Association, an unincorporated 
membership society organized in Washington, D.C. on August 2, 
1927, and having its principal office at the National Press Building, 
Washington. D.C, and "such other Trade Associations as may 
hereafter participate in the activities under this Code or in the 
selection of the Code Authority. 

Section 9. The term " Executive Committee " as used herein 
shall mean the Executive Committee of the American Manganese 
Producers Association. 

58379<>_34 2 (119) 



120 

Section 10. The term '• Xorthwestern Section " as used herein 
shall include California, Colorado, Idaho, Montana, Nevada, Oregon, 
North Dakota, South Dakota, Utah, Washington and Wyoming. 

Section 11. The term " Southern Section " as used herein 
shall include Alabama, Arizona, Arkansas, Florida, Georgia, Ken- 
tucky, Louisiana, Mississippi, Missouri, New Mexico, North Carolina, 
Oklahoma, South Carolina, Tennessee, Texas, Virginia and West 
Virginia. Territories shall be considered to be in the Southern 
Section. 

Section 12. The terna '" Northern Section "' as used herein shall 
include all other states in the United States on the North American 
Continent having Manganese-bearing deposits in which manganese 
represents the principal recoverable constituent of economic value. 

Section 13. Population for the purposes of this Code shall be 
determined bj^ reference to the Federal Census of 1930. 

Article III — Hours 

Section 1, Mascimum Hours. — On and after the effective date of 
this Code, no employee shall be permitted to work in excess of 
forty (40) hours in any one week or eight (8) hours in any twenty- 
four (24) hour period, except as herein otherwise provided. 

Section 2. Hours for Clerical and Office Employees. — On and 
after the effective date of this Code, no person employed in clerical 
or office work shall be x:)ermitted to work more than an average of 
forty (40) hours per vreek during any one month period nor more 
than forty-eight (48) hours in any one week. 

Section 3. Exceptions As To Hours. — Limitation of hours as 
provided for in this Article shall not apply to traveling salesmen, 
technicians, (highly skilled factory workers are not to be classed as 
technicians), nor to (a) persons in a managerial, executive, or 
supervisory capacity who receive not less than $35.00 per week, nor 
to (b) employees engaged in emergency maintenance or emergency 
repair work involving breakdown or protection of life or property; 
provided that such emergency overtime work in excess of forty (40) 
hours in any one week, or in excess of eight (8) hours in any one 
day, shall be paid for at the rate of time and one half. 

Section 4. Limitation as to hours of a twenty-four (24) hour 
day period shall not apply to very special cases where restrictions 
of hours of labor of highly sldlled workers in continuous processes 
would unavoidably reduce production, provided, however, that such 
employees in any case shall not work more than forty -eight (48) 
hours in any one week and that such emergency overtime in excess 
of the normal eight (8) hours in any one day or forty (40) hours 
in any one week shall be paid for at the rate of time and one half. 

Section 5. There shall be a tolerance of 10% additional hours over 
the forty (40) hours per week or eight (8). hours in any twenty-four 
(24) hour day for (a) employees engaged in the preparation, care, 
and maintenance of plant, machinery, and production facilities, (b) 
firemen and engineers, and (c) shippers and delivery emplo^^ees, pro- 
vided, however, that any such work by any such employee in excess 
of forty (40) hours per week or eight (8) hours per day shall be com- 
pensated for at the rate of time and one half. 



121 

Secttox 6. Watchmoi. — Watchmen, depending on the nature of 
their responsibilities, ma}^ work not more than eiohty-fonr (84) 
hours durino- any two (2) week period or not more than lifty-six 
(50) hours in any one week. 

Sectiox 7. Employment hy Several Employers. — Xo employer 
shall knowingly permit any employee to work for any time which, 
when totalled with that already performed with another employer 
or employers in this Industry, exceeds the maximum permitted 
herein. 

Section- 8. Standard Week. — No employee shall be permitted to 
work more than six days in any seven day period. 

Article IV — Wages 

Section 1. Minimum Wage.s. — On and after the effective date of 
this Code no employee shall be paid in any pay period less than at 
the rate of forty (40) cents per hour " above ground " and forty- 
seven and one half (47^^) cents per hour "underground" in the 
North Western Section, and forty (40) cents per hour " above 
ground" and forty-five (45) cents per hour "underground" in the 
Northern Section and thirty (30) cents per hour " above ground " 
and thirty-five (35) cents per hour " underground " in the vSouthern 
Section except as otherwise herein provided. These minimum rates 
hereinabove shall be construed as the hiring rates applying to com- 
mon or totally unskilled labor. Other classes of labor, including 
pit'ce workers, shall be compensated at rates above these minimums. 
The minimum rates in eifect on July 1st, 1933, which were above these 
minimums specified, shall in no case be reduced. 

Section 2. Piece Work Compensation. — The established minimum 
rate of pay for any pay period shall apply irrespective of whether 
an employee is actually compensated on a time rate, piece rate, or 
other basis. 

Section 3. Wages ahoi'e Minimnm. — Equitable adjustments in all 
pay schedules of employees shall be made within thirty (30) days 
after the effective date of this Code by any employer who has not 
heretofore made such adjustments under the National Industrial 
Recovery Act. Within sixty (60) days after the effective date of this 
Code each member of this Industry shall make a report of such 
adjustment whether made prior to or subsequent to date of approval 
of this Code to the Code Authoritj^ 

Section 4. Clerical and Office Employees. — No accounting, clerical, 
office, sales or service emploj^ee in any office shall be paid less than 
at the rate of fifteen ($15.00) dollars per week, provided, how^ever, 
that office boys and girls and messengers may be paid at a rate not 
less than 80% of such minimum, and provided further, that the num- 
ber of such boys and girls and messengers so paid shall constitute not 
more than 5% of the total number of such employees in any one office 
of an}' one employer, but in any case such employer shall be entitled 
to one such employee. No employee named in Section 4. xVrticle IV, 
in regular employment shall have their weekly wage reduced on 
account of any reduction of weekly hours of employment made 
because of the requirements of Section 1 of Article III. 



122 

Section 5. Female EynployceK.— Vem^A^ employees performing 
substantially the same work as male employees shall i-eceive the same 
rates of pay as male employees, and when they displace male employ- 
ees they shall receive the same rat<? of earninj^s as the men they 
displace. 

Sectiox 6. naiidicapped Pet^sons. — A person whose earning capac- 
ity is limited because of age or physical or mental handicap may be 
employed on light work at a w^age below the minimum established by 
this Code if the employer obtains from the State Authority desig- 
nated by the United States Department of Labor a certificate author- 
izing his «nployment at such wagevS and for such hours as shall be 
stated in the certificate: su.ch authority shall be guided by the in- 
structions of the United States Department of Labor in issuing such 
certificates; each employer shall file with the Code Authority a list 
of all such persons employed by him. 

Article V — General Labor Provisions 

Section 1. Child Labor. — 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 Avithin thirty days from the approval of this Code 
a list of such operations or occupations. In any state an employer 
shall be deemed to have complied w"ith 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. Provisions From The Act. — In compliance with Section 
7 (a) of the Act it is provided : 

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

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

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

Section 3. Rcdassifcation of Employees. — No employer shall re- 
classify employees or duties of occupations performed or engage in 
any other subterfuge for the purpose of defeating the purposes or 
provisions of the Act or of this Code, 

Section 4. Standards for Safety and Health. — Every employer 
shall make reasonable provision for the safety and health of his em- 
ployees at the place and during the hours of their emi)loyu-ient. 
Standards for safety and health for the Industry shall be submitted 
to the Administrator within six months after the date of approval of 
the Code, 



123 

Section 5. Sfafe Laws. — No proA^sion in this Code shall supersede 
anj' State or Federal law which imposes on employers more stringent 
requirements as to age of employees, wages, hours of work, or as to 
safety, health, sanitary or general working conditions, or insurance, 
or fire protection, than are imposed by this Code. 

Section G. Posfhif/. — All employers shall post and keep posted 
complete copies of this Code and any amendments thereto in con- 
spicuous i)laces accessible to employees. 

Section 7. Company Town and Stores. — Employees other than 
maintenance or supervisory men, or those necessary to protect prop- 
erty, shall not be required as a condition of employment to live in 
homes rented from the employer. No employee shall be required as 
a condition of employment to trade at a store owned or specified by 
an employer. 

Section 8. Payment of YVages.—Xn emi)loyer shall make ])ayment 
of all wages in lawful currency, or by negotiable check therefor, pay- 
able on demand. These wages shall be exempt from any payments 
for pensions, insurance or sick benefits other than those voluntarily 
paid by the wage earners or required by the State laws. Pay periods 
for wages shall be at least semi-monthly and for salaries at the end 
of every month. Employers shall agree not to wnthliold wages. 

Section 9. Dhmissal for Coniylaint. — No employee shall be dis- 
missed by reason of making a complaint or giving evidence with 
respect to a violation of a Code. 

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

Section 1. Orcfamzation and Constitution. — A Code Authority 
to administer this Code is hereby established and shall consist of 
nine voting members, five of whom shall be members of the Execu- 
tive Committee of the American Manganese Producers Asociation 
and four other members of the Industry (not members of the Execu- 
tive Committee) truly representative of the various interests of the 
Industry elected by a fair method of selection approved by the 
Administrator. This Code Authority shall make investigations as 
to the functioning and observance of any provisions of this Code 
at its own instance or upon complaint of any person affected and 
shall report the same to the Administrator. 

Section 2. In addition to the above membership of the Code Au- 
thority, there may be one and not more than three members wdthout 
vote, and without compensation by the Industry, appointed by the 
Administrator to serve for six month and twelve month terms from 
the date of appointment as he may specify. 

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 cojjies of its Articles of Asso- 
ciation, B3'-Laws, Rules and Regulations, and any amendments when 
made thereto, together with such other information as to member- 
ship, organization and activities as the Administrator may deem 
necessary to effectuate the purposes of the Act. 



124 

Section 4. In order that the Code Authority shall at all times 
be trill}' 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. ISIembers of the Industry shall be entitled to partici- 
pate in and share the benefits of the activities of the Code Authority 
and to participate in the selection of the members thereof by assent- 
ing to and complying with the requirements of this Code and sus- 
taining their reasonable share of the expenses of its administration. 
Such reasonable share of the expenses of administration shall be 
determined by the Code Authority, subject to review by the Adminis- 
trator, on the basis if volume of business and/or such other factors 
as may be deemed equitable. 

Section 6. Xotliing 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 
anj'one for any act of any other member, officer, agent, or employee 
of the Code Authority. Nor shall any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties hereunder, 
be liable to anyone for any action or omission to act under this 
Code, except for his own willful misfeasance or nonfeasance. 

Section 7. Pou-ers and Duties. — Subject to such rules and regula- 
tions as may be issued by the Administrator, the Code Authority 
shall have the following further powers and duties, the exercise of 
which shall be reported to the Administrator and shall be subject to 
his right, on review, to disapprove any action taken by the Code 
Authority. If the Administrator shall determine that any action of 
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 aft'ord 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 ajDproves or unless he shall fail to 
disapprove after thirty (30) days' notice to him of intention to pro- 
ceed with such action in its original or modified form. 

(a) To insure the execution of the provisions of this Code and 
provide for the compliance of the Industry with the provisions of 
the Act, subject to rules and regulations prescribed by the Adminis- 
trator. To receive com])laints of violations of this Code or disputes 
arising thereunder, make investigations thereof, provide hearings 
thereon, adjust such complaints and make such decisions as are neces- 
sary thereon and to interpret the provisions of the Code and to bring 
to the attention of the Administrator for prosecution, recommenda- 
tion, and such other necessary action relative to unadjusted violations 
or disputes. 

(b) To adopt By-laws, Kules and Regulations for its procedure 
and for the aclministration and enforcement of the Code. 

(c) To obtain from members of the Industry, through a confiden- 
tial agency, such statistical information and reports as are required 



125 

for the adminstration of the Code and to provide for submission 
by members of such statistical infoi-mation and reports as the Admin- 
istrator ma}^ 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 governmental agencies 
as the Administrator may designate; provided that nothing in this 
Code shall relieve any member of the Industrj^ of any existing obli- 
gations to furnish reports to any governmental agency. No indi- 
vidual reports shall be disclosed to any other member of the Industry 
of any other party except to such governmental agencies as may be 
directed by the Administrator. 

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

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

(f) To cooperate with the Administrator in regulating the use 
of any N.R.A. insignia solely l\y those members of the Industry 
who have assented to, and are complying with, this Code. 

(g) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the Industry in their relations 
with each other or Avith other industries, and concerning control 
of production through voluntary agreement, and to reconmiend to 
the Administrator n.ieasures for industrial planning, including 
stabilization of emplo3'ment and the conservation of natural 
mineral resources. 

(h) To make studies with a view to the establisliing of classifi- 
cations and standards of quality for products of the Industry in 
cooperation with some Federal agency, preferably the Bureau of 
Standards of the United States Department of Commerce. 

Article VII — Marketing and Tirade Practice Rules 

Section 1. Trade Practice Bvles.— The following trade practices 
are declared to constitute unfair methods of competition between 
members of the Industry, and no member of the Industry shall use 
any of them either darectly or indirectly through any officer, agent 
or employee ; the violation of any one or more of these or any further 
trade practices which hereafter may be established upon recommenda- 
tion by the Code Authority and approval by the Administrator after 
such notice and hearing as he may prescribe, shall be a violation of 
this Code. 

Section 2 (a) Pr/cr Schedules.- — Each member of the Industry 
within ten days after the effective date of this Code shall file with the 
Code Authority the price or prices and terms and conditions of sale 
at which he is offering his products for sale; this original filing to 
become effective on the date of such filing. The Code Authority 
forthwith on such original filing shall notify all members of the 
Industry of the contents thereof and shall make the same available to 



126 

the public. Any member of the Industry desiring to change the 
price or prices of his products and terms and conditions of sale shall 
notify the Code Authority of such intention by filing his revised 
schedule which shall become effective immediately thereafter and 
shall l)e distributed to the Members of the Industry and be made 
available to the general public. 

(b) Such price schedules shall include terms of payment, length 
of bookings, or contracts and f.o.b. point and such other provisions as 
may be necessary to fully inform the trade of all conditions of sale. 

(c) The failing to file such price schedules or any change therein. 

(d) The selling beloAv such open or publicly announced price 
schedules or the deviating from such terms and conditions of sale as 
are set forth in Section 2, Subsection (a) of this Article. 

Section 3. 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 purchasers on like 
terms and conditions. 

Section 4. The prepayment of freight charges with the intent or 
with the effect of granting discriminatory credit allowance. 

Section 5. The allowance in any form of adjustment, discount, 
credits, or refunds, for the purpose or with the effect of altering 
retroactively the price quoted, in such manner as to create price 
discrimination. 

Section G. The predating or postdating of any invoice or sales 
contract except to conform to a bona-fide agreement entered into 
on the predate. 

Section 7. The false marking of any product of the Industry or 
the intentional misrepresentation of analysis of content or of any 
size or weight or the making of, causing or permitting to be made 
or publishing of any false, "misleading, or deceptive stat<^ment by 
wav of advertisement, invoice, or otherwise concerning the size, 
quality, quantity, character, nature, preparation, or origin of any 
Industry product. 

Section 8. The defamation of competitors by falsely imputing to 
them dishonorable conduct, inability to perform contracts, ques- 
tionable credit standing, or other false representation or false 
disparagement of the grade or quality of their goods. 

Section 9. The imitation or copying of written or oral form of 
trade marks, trade names, or slogans owned and used by a com- 
petitor. 

Section 10. Inducing or attempting to induce the breach of an 
existing oral or written contract between a competitor and his 
customer or source of supply, or interfering with or obstructing 
the performance of such contractual duties or services. 

Section 11. No member of the Industry shall ship goods on con- 
signment except under circumstances to be defined by the Code 
Authority with the approval of the Administrator (where peculiar 
circumstances of the Industry require the practice). 

Section 12. No member of the Industry shall require that the 
purchase or lease of any goods be a prerequisite to the purchase or 
lease of any other goods. 



127 

Section 13. No member of the Industry shall give, permit to be 
a'iven, or directly offer to <2;ive anythinfr of value for the purpose of 
influeneino- 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. This 
commercial bribery provision shall not be construed to prohibit free 
and general distribution of articles commonly used for advertising 
except so far as such articles are actually"^ used for commercial 
bribery as hereinabove defined. 

Section 14. Giving of gratuities or special commissions to buyers 
or rewards or payments to the employees of buyers or the lavish 
entertainment thereof. 

Section 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. Failure to prosecute in due course shall be evidence that 
any such threat is unwarranted or unjustified. 

Section 16. Aiding or abetting any person, firm, association, or 
corporation in any unfair practice herein set out. 

Section 17. Procuring, otherwise than with the consent of any 
member of the Industry, any information concerning the business 
of such member which is properly regarded by it as a trade secret as 
held confidential within its organization, other than information 
relating to a violation of any provision of this Code. 

Section. 18. Consciously shipping a lower grade of material than 
is permitted in the contract or order. 

Article VIII — Export Trade 

Section 1. No provision of this Code relating to prices or terms of 
selling, shipping, or marketing shall apply to export trade or sales 
or shipments for export trade. 

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 modiiV any order, approval, license, rule or 
regulation issued under said Act. 

Section 2. Such of the provisions of this Code as are not re- 
quired to be included therein by the Act may, with the approval of 
the Administrator, be modified or eliminated in such manner as may 
be indicated by the needs of the public, by changes in circumstances, 
or by experience ; all the provisions of this Code, unless so modified 
or eliminated, shall remain in effect during the life of the Act, 

Section 3. An amendment may be proposed by any interested 
party, either to the Code Authority or directly by or to the Admin- 
istrator. All proposed amendments shall be referred to the Code 
Authority, who shall give members of the Industry an opportunity 
to be heard thereon, and thereafter the Code Authority may make 



128 

such recommendations thereon as is deemed proper, provided, how- 
ever, that when approved by the Administrator as necessary to 
effectuate the policies of the Act, after such notice and hearing as 
he may prescribe, any proposed amendment shall thereupon become 
effective as a part of this Code. 

Section 4. The Code Authority may make recommendations for 
modifications of this Code to the Administrator which shall become 
effective as a part of this Code upon approval by the Administrator 
after such notice and hearing as he may prescribe. 

Article X — Monopolies 

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

Article XI — Effective Date 

This Code shall become effective beginning ten da^^s after its 
approval by the Administrator. 

Approved Code No. 425. 
Registry No. 1218-06. 

o 



Approved Code No. 426 
CODE OF FAIR COMPETITION 

FOR THE 

PAPER MAKERS' FELT INDUSTRY 

As Approved on May 11, 1934 



ORDER 



Code of Fair Competitton for the Paper Makers' Felt 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 Paper Makers' Felt 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 No. 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate by reference said an- 
nexed report and do find that said Code complies in all respects with 
the pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved; provided, however, that 
the provisions of Article VII, Section 3, insofar as they prescribe 
a waiting period between the filing with the Code Authority (i.e. 
actual receipt by the Code Authority) and the effective date of 
revised price lists or revised terms and conditions of sale be and they 
are hereby stayed pending my further order. 

Hugh S. Johnson, 
■ AdTTiinistrato-r for Industrial Recovery. 

Approval recommended : 
H. O. King, 

Division Administrator. 

Washington, D.C, 

May 11, 1934. 

58533° 544-73 34 (129) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the Code of Fair Competition for the 
Paper Makers' Felt Industry presented by the Paper Makers Felt 
Association, claiming to represent 100% of the Industry. 

The hearing was conducted in Washington, D.C. on January 17, 
1934. Every person who requested an appearance was freely heard 
in accordance with statutory and regulatory requirements. The 
Code was submitted by duly qualified and authorized representatives 
of the Industry. 

DESCRIPTION OF INDUSTRY 

The Industry is composed of eleven (11) concerns which in 1933 
did approximately $9,000,000 worth of business. In 1929 these same 
companies had annual sales of approximately $15,400,000. Al- 
though paper makers felt is made primarily from wool, there is 
little relation between this Industry and the Wool Textile Industry 
generally. The Paper Maker's Felt Industry manufactures a spe- 
cialty for a different kind of consumer than for any other branch of 
the wool manufacturing. 

In the Paper Makers' Felt Industry there is no necessity for limiting 
the operating hours of machinery. There is no possibility of over- 
production in this Industry because every piece of goods is made on a 
definite order from a definite customer, and, with very few exceptions, 
can be used on only one definite position on a certain paper machine. 
Consequently, no manufacturer of paper makers' felt can make a 
sujiply in excess of the demand, and therefore there is no possibility 
of dumping goods on the market at prices below the cost of manufac- 
ture, or of creating, on account of an over-supply, the many other 
conditions which would be harmful alike to the Industry and to its 
employees. 

This characteristic of the Paper Makei's' Felt Industry is explained 
by the fact that thousands of different sizes and styles of felt are 
required to meet the specific demands of individual paper machines. 
Furthermore, the requirements of individual paper manufacturers 
are constantly changing, so that it would never be safe for a felt 
manufacturer to make felts in excess of those actually ordered. 
Standardization of this product is impossible, and no felt manufac- 
turer would make up a stock of felts for which he had no order. 

The sizes of looms vary in width from 40" to 540", whereas the 
average woolen or worsted mill making clothing material seldom has 
over three sizes. Besides the large range of sizes, there are also sev- 
eral different styles of looms, as heavier type looms are required to 
weave the heavier type felts, etc. 

(ISO) 



131 

As orders for different sizes and types of felts vary greatly from 
week to week, this means that the distribution of orders is such that 
it almost never happens that different loom sizes are equally busy. 
Good business on one type of felt may mean that a certain group of 
looms is very busy this week and within a period of a few weeks this 
group may be almost entirely idle, and another group very busy. 
All of which means that Avithout a very gi'eat surplus of looms no felt 
manufacturer can hope to fill his orders promptly except by the 
flexibility obtained in running some looms many more hours per day 
than others. 

LABOR PROVISIONS 

The minimum wage established by this Code is 35^ an hour. With 
certain exceptions, hours are limited to 40 per week. The exceptions 
to the maximum hours are similar to other codes and exempts mana- 
gerial and supervisory emploj'ees receiving $35.00 per week and 
outside salesmen. Engineers, electricians, firemen, employees en- 
gaged in repair shop, shipping and outside crews are limited to 40 
hours per week with a tolerance of 10%, provided that time and 
one-third is paid for all time worked in excess of 40 hours. AVatch- 
men may work to 56 hours per week. 

There has been a relatively small decline in employment in these 
mills. During the 1929 peak there were 2294 workers compared 
with 1999 in the fall of 1933. 

FINDINGS 

The Deputy Administrator in his final report to me on said Codo 
having found as herein set forth and on the basis of all the proceed- 
incfs 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, 
bv inducing and maintaining united action of labor and management 
under adec{uate governmental sanctions and supervisions, by elimi- 
nating unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standarcls of 
labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50.000 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 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 



132 

Industry; and that said association imposes no inequitable restric- 
tions on admission to membership therein. 

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

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

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

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

Hugh S. Johnson, 

A dministrator. 
May 11, 1934. 



CODE OF FAIR COMPETITION FOR THE PAPER MAKERS' 
FELT INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recover}' Act, this Code is established as a Code of Fair Competition 
for the Paper Makers' Felt Industry, and shall be the standard of 
fair competition for such Industry and shall be binding upon each 
member thereof. 

Article II — Definitions 

1. The term " Industry " as used herein means the manufacture 
and original sale of woven woolen felts and jackets for paper 
makers. 

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

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

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

Article III — Hours 

1. No employee shall be permitted to work in excess of eight (8) 
hours in any twenty-four (24) hour period beginning at midnight, 
provided that in order to meet the requirements of customers or 
to prevent the spoilage of materials, a tolerance of two (2) hours per 
day may be allowed, but no employee shall be permitted to work in 
excess of forty (40) hours per week, except as herein otherwise 
provided. 

2. The provisions of the foregoing section shall not apply to the 
following : 

(a) Employees in a managerial or supervisory capacity earning 
thirty-five dollars ($35.00) a week or more and outside salesmen. 

(b) Engineers, electricians, firemen, employees engaged on repair- 
shop, shipping and outside crews who shall not be permitted to work 
in excess of forty (40) hours per week with a tolerance of ten per 
cent (10%) ; provided that time and one-third shall be paid for all 
hours worked in excess of forty (40). 

(c) Watchmen who shall not be permitted to work in excess of 
fifty-six (56) hours per week, 

(133) 



134 

3. The maximum hours fixed in the foregoing sections shall not 
apply to any employee on emergency maintenance or emergency 
repair work involving breakdowns or j^rotection of life or property, 
but in any such special case at least time and one-third shall be 
paid for hours worked in excess of the maximum hours herein pro- 
vided. Emergency hours worked shall be reported monthly to the 
Code Authority. 

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

Article IV — ^^Vages 

1. No employee shall be paid less than at the rate of thirty-five 
(35) cents per hour. 

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

3. Wage differentials existing for the last pay period prior to 
September 15, 1933, shall be maintained for all employees receiving 
more than the minimum herein prescribed. All employers shall 
report to the Code Authority within one month after the effective 
date of this Code such readjustment of pay schedules. 

4. Female emploj'ees performing substantially the same work 
as male employees, shall receive the same rate of pay as male em- 
ployees. The Code Authority shall, within ninety (90) days after 
the effective date of this Code, file with the Administrator a de- 
scription of all occupations in the Industry in which both men and 
women are employed. 

Article V- — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed in 
the Industry. No person under eighteen (18) years of age shall be 
employed at operations or occupations which are hazardous in nature 
or dangerous to health. The Code Authority shall submit to the 
Administrator wnthin thirty (30) days from the effective date a list 
of such operations or occupations. In any State an employer shall 
be deemed to have complied with this provision as to age if he shall 
have on file a certificate or permit duly signed by the Authority in 
such State empowered to issue employment or age certificates or per- 
mits showing that the employee is of the required age. 

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

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

(b) That no employee and no one seeking employment shall be 
required as a condition of employment to join any company imion 



135 

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 emplo3^ment 
approved or prescribed b}^ the President. 

3. Xo emplo3'er shall reclassify employees or duties of occupations 
performed or engaged in any other subterfuge for the purpose of 
defeating the purposes or provisions of the Act or of this Code. 

4. To prevent any improper speeding. up of work (stretchouts), 
no employee in the Industry shall be required to do any work in ex- 
cess of the practice as to the class of work of such employees prevail- 
ing on July 1, 1933, unless such increase is submitted to and approved 
by the Code Authority. 

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, sani- 
tary or general Avorking conditions, or insurance, or fire protection, 
than are imposed by this Code. 

6. All employers shall post Articles III, IV and V of this Code in 
conspicuous places accessible to employees. Every member of the 
Industry shall comply with such regulations relating to posting of 
provisions of codes as have been or may be prescribed by the 
Administrator. 

Article VI — Administration 

1. There shall forthwith be constituted a Code Authority to coop- 
erate with the Administrator in the administration of this Code. 
The Code Authority shall consist of three (3) persons elected by a 
fair method of selection to be approved by the Administrator. 

2. In addition to membership as above provided, there may be a 
member or members without vote and without expense to the Indus- 
try to be appointed by the Administrator. 

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 restriction 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, or- 
ganization, and activities as the Administrator may deem necessary 
to effectuate the purposes of the Act. 

4. In order that the Code Authority shall at all times be truly 
representative of the Industry and in other respects comply with the 
provisions of the Act, the Administrator may prescribe such hear- 
ings as he may deem proper and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other re- 
spects comply with the provisions of the Act, may require an appro- 
priate modification in the method of selecting of the Code Authority. 

5. Members of the Industry shall be entitled to participate in and 
share the benefits of the activities of the Code Authority and to par- 
ticipate in the selection of the members thereof by assenting to and 



136 

complying with the requirements of this Code and sustaining their 
reasonable share of the expenses of its administration. Such reason- 
able share of the expenses of administration shall be determined by 
the Code Authority, subject to approval by the Administrator, on the 
basis of volume of business and/or such other factors as may be 
deemed equitable. 

6. Nothing contained in this Code shall constitute the members 
of the Code Authority partners for any purpose. Nor shall any 
member of the Code Authority be liable in any manner to anyone 
for any act of any other member, officer, agent, or employee of the 
Code Authorit3\ Nor shall any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties here- 
under, be liable to an3^one for any action or omission to act under 
this Code, except for his own willful misfeasance or nonfeasance. 

7. The Code Authority shall have the following further powers 
and duties, the exercise of which shall be reported to the Admin- 
istrator. 

(a) To obtain from members of the Industry such information 
and reports as are required for the administration of the Code. 
In addition to information required to be submitted to the Code 
Authority, 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 
Buch Federal and State agencies as the Administrator may desig- 
nate; provided that nothing in this Code shall relieve any member 
of the Industry of any existinfij obligations to furnish reports to 
any Government agencies. No individual report shall be disclosed 
to any other member of the Industry or any other party except to 
such other governmental agencies as may be directed by the Admin- 
istrator. 

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

(c) 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 emjDloyment. 

(d) To recommend modification of this code, which, after notice 
to the members of the Industry and their approval, shall become 
effective as part of this code upon approval by the Administrator 
after such notice and hearing as he may specify. 

(e; To adopt by-laws, and rules and regulations for its procedure 
and for the administration of this code. 

8. If the Administrator shall at any time 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 ajjprovcs, 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. 



137 

Article VII — Trade Practice Rules 

1. Uniform Cost Accounting. — The Code Authority shall cause to 
be formulated an accountin<T system and method of cost finding and/or 
estimating capable of use by and acceptable to all members of the 
Industry. After such system and methods have been formulated 
and approved b}' the Administrator, full details concerning them 
shall be made available to all members. Thereafter, all members 
shall determine and/or estimate costs in accordance with the purposes 
of such methods. 

2. /Selling Below Reasonable Cost. — When the Code Authority 
determines that an emergency exists in this Industry, and that the 
cause thereof is destructive price cutting such as to render ineffective 
or seriously endanger the maintenance of the provisions of this Code, 
tlie 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 determina- 
tion. 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 condi- 
tions 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. 

3. Published Prices. — Within thirty (30) days aft«r the effective 
date each member of the Industry shall file with the Code Authority 
a price list for all products of the Industry sold or offered for sale 
by him, together with the discounts and terms of payment. 

Kevisions in price lists and/or discount sheets may be filed there- 
after with the Code Authority by any member of the Industry to 
become effective upon the date specified thereon, provided, however, 
that such revision shall be published and filed with the Code Author- 
ity ten (10) 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 notice of the effective 
date specified shall be sent immediately by the Code Authority to all 
known members of the industry wdio thereupon may file, if they so 
desire, revision of their price lists and/or discount sheets, which 
shall become effective upon the date when the revised price list or 
discount sheets first filed shall go into effect. 

Price lists shall be open for inspection to all interested parties 
immediately upon being filed with the Code Authority and the trade 
shall be notified when revised price lists are filed. ^ 

4. Sales Beloiv Published Price. — No member of the Industry shall 
sell or offer to sell any products of the Industry at prices lower than 
the })rice quoted in his price list or on more favorable terms and 
conditions of sale than the terms and conditions of sale previously 
published and filed by such member with the Code Authority in 

» See paragraph 2 of order approving this Code. 



138 

accordance with the foregoing provisions and in effect at the time of 
such sale. 

5. Guarantees. — No member of the Industry shall guarantee any 
product of the Industry against advances or protect any product 
of the Industr}^ against decline in price or guarantee the life and 
services of any product of the Industry, except for the usual guar- 
antees against defects in manufacturing. 

6. Inaccurate Reference to Competitors^ etc. — No member of the 
Industry shall publish or otherwise make an}^ statement which 
refers inaccurately, in any material particular to any competitors 
or their goods, prices, values, credit terms, policies, or services. 

7. Terms. — No member of the Industry shall allow cash discount 
in excess of the following : 

(a) 1%, 10 days; 30 days net for delivery east of the Rocky 
ISIountains. 

(b) 1%, 20 days, 40 days net for delivery west of the Rocky 
Mountains. 

Article VIII — Modificatiox 

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 regu- 
lation issued under said Act. 

2. Such of the provisions of this Code as are not required to be 
included herein by the Act, may, with the approval of the Admin- 
istrator, be modified or eliminated in such manner as maj' be indi- 
cated by the needs of the public, by changes in circumstances, or 
by experience. 

Article IX — Monopolies 

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

Article X — EFrECTi\'E Date 



This Code shall become effective ten da3^s after approval. 

O 



Approved Code No. 426, 
Kegistry No. 232-1-02. 



Approved Code No. 427 

CODE OF FAIR COMPETITION 

FOR THE 

CURLED HAIR MANUFACTURING INDUSTRY AND 
HORSE HAIR DRESSING INDUSTRY 

As Approved on May 14, 1934 



ORDEK 



Approvixg Code of Fair Competition for the Curled Hair Manu- 

TACTURING INDUSTRY AND HoRSE HaiR DRESSING INDUSTRY 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title 1 of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Curled Hair Manufacturing Industry and 
Horse Hair Dressing 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. 

XOW. THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. G543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of said 
Title of said Act; and do hereby order that said Code of Fair Com- 
petition be and it is hereby approved. 

Hugh S. Johnson, 
Adininistrator for IndU'Strial Recovery. 

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

Washington, D.C, 

May U, 1934. 

58780° 544-79 34 (139) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: This is a report on the approved Code of Fair Competition 
for the Curled Hair Manufacturing Industry and Horse Hair Dress- 
ing Industry, the hearing on which was conducted in Washington, 
December 5, 1933, in accordance with the provisions of the National 
Industrial Recovery Act. 

Under the provisions of this code no female employee shall be 
paid less than at the rate of thirty-five cents (350) per hour, and no 
male employee shall be paid less than at the rate of forty cents (400) 
per liour. It is further provided that female emplo^'ees, performing 
substantially the same work as male employees, shall receive the 
same rate of pay as male employees. Section 5, of Article IV, 
provides for an increase in the pay of all employees receiving in 
excess of the minimum wage, who have not received an adjustment 
since June 16, 1933. 

No employee shall be permitted to work in excess of forty (40) 
hours in any one week or eight (8) hours in any one day, with the 
exception of watchmen, firemen, and engineers, who are permitted 
to work forty-four (44) hours per week. Emergency' maintenance 
or emergency repair men shall be paid at the rate of time and one- 
half for all hours worked in excess of fortj^-eight (48) hours in any 
one week or ten (10) hours in any twenty-four (24) hour period. 

The Horsehair Dressing Industry embraces establishments en- 
gaged in the dressing of horsehair, which consists of the following 
processing: washing, combing, assorting, dressing, and finishing. 
This industry is very small both in number and size of establish- 
ments. There are at the present time only twenty (20) establish- 
ments; ten (10) located in Philadelphia and ten (10) in Chicago. 
The aggregate invested capital in this industry over the past five 
years has declined from one million dollars in 1929 to five himdred 
thousand dollars in 1933. 

The Curled Hair Industry consists of establishments engaged in 
the washing, spinning, and combing of hog, goat, horse and other 
animal hair. These establishments, numbering thirteen (13) in total, 
are located in the central and eastern sections of the United States. 
The aggregate invested capital in 1933 was two million dollars. 
This represents a 33.3 per cent decrease under 1929. 

Markets for the Horsehair Dressing Industry's products are exclu- 
sively jobbers, who in most cases are also importers of dressed horse- 
hair. These jobbers sell to brush, haircloth and furniture manu- 
facturers, and a few other small industries, the above mentioned 
outlets being in the order of their importance as to volume used. 
Within the past five years the markets for domestic dressed horsehair 
have declined to a point where a large number of establishments are 

(140) 



141 

operatiiiG: on a ininiininn capacity basis, due to the low cost of foreign 
dressed liorsehair. 

The markets for the Curled Hair In(histry are furniture, bedding 
antl automobile manufacturers. The demand for curled hair has 
decreased about GO.T per cent from 1929 to 1933. The Curled Hair 
Industry is confronting a very grave problem, and that is the substi- 
tution of other products for curled hair. 

The eti'ects of the proposed code on reemployment and pay-roll 
increases for the Horsehair Dressing Industry cannot be determined 
for two reasons; (1) work is not steady for it is on the order basis 
and size of ordei-s determines the time of work; (2) the increase in 
wages to be paid will depend entirely on the hours worked. How- 
ever, the employees will be benefited by the shorter hours and in- 
crease in wage rates when employed. 

The Curled Hair Industry will not increase the number of em- 
plo^'Ces due to the shorter hours, as they are now working on the 
spread-work system, and business does not require more production. 

Increased burden to the industry, because of wage rate increase, 
will be about $90,000 per year, or an average increase of $4.00 per 
week per employee, providing all employees are retained and work 
full weekly hours. 

The Acting 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- 
ceedinofs in this matter; 

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tends to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of 
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 realization 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 trade normally employs not more than 50,000 employees; 
and is not classified by me as a major industr3\ 

(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 and trade group are an association and trade group truly repre- 
sentative of the aforesaid industries and that said association and 
said group impose no inequitable restrictions on admission to mem- 
bership therein. 

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



142 

(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. 

Respectfully, 

Hugh S. Johnson, 

A dviinistrator. 
May 14, 1934, 



CODE OF FAIR COMPETITION FOR THE CURLED HAIR 
MANUFACTURING INDUSTRY AND HORSE HAIR 
DRESSING 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 Compe- 
tition for the Curled Hair jSIanufacturing Industry and the Horse 
Hair Dressing Industry and its provisions shall be binding upon 
every member thereof. 

Article II — Defixitioxs 

1. The term " Industries '" as used herein means the Curled Hair 
Manufacturing Industry and the Horse Hair Dressing Industry as 
defined in Sections 2 and 3 of this Article. 

2. The term " Curled Hair ]Manuf acturing Industry ■' as used 
herein includes the manufacture and sale by the manufacturer of 
curled hair, and such related branches or subdivisions as may from 
time to time be included under the provisions of this Code by the 
President of the United States, after such notice and hearing as 
he may prescribe. 

3. The term " Horse Hair Dressing Industry " as used herein 
includes the dressing, selling and/or wholesale distribution of " Horse 
Hair "', and such related branches or subdivisions as may from time 
to time be included under the provisions of this Code by the Presi- 
dent of the United States, after such notice and hearing as he may 
prescribe. - I 

4. The term " member of the industries " includes, but without 
limitation any individual, partnership, association, corporation or 
other form of enterprise engaged in the Curled Hair Manufactur- 
ing Industry and/or the Horse Hair Dressing Industry, either as 
an emploA'er or on his or its own behalf. 

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

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

7. 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 or eight (8) hours in any one day, except 
as herein otherwise provided. 

(143) 



144 

2. The provisions of this Article shall not apply to persons em- 
ployed in a manaoerial or executive capacity who receive not less 
than thirty-five ($35.00) per vveek, nor to traveling salesmen nor to 
employees engaged in emergency maintenance or emergency repair 
work "involving protection of life or property, provided, however, 
that all employees engaged in emergenc}' maintenance or emergency 
repair Avork shall receive at least one and one-half times their normal 
rate of pay for all hours worked in excess of forty-eight (48) hours 
in any one week or in excess of ten (10) hours in any twenty-four 
(24) hour period. 

3. No Avatchman, fireman or engineer shall be permitted to work 
in excess of forty-four (44) hours in any one week. 

4. No employee shall be loermitted to work more than six (G) days 
in any seven (7) day period. 

5. Employers, when Avorking as j^roducers, shall be governed by 
the maximum Avorking hours provided herein. 

C. No employee shall be permitted to w'ork for a total nun.ibrv of 
hours in excess of the number of hours prescribed herein Avhetlier 
he be employed by one or more employers. 

Article IV — Wages 

1. No female employee shall be paid less than at the rate of thirty- 
five cents (350) per hour and no male employee shall be paid less 
than at the rate of forty cents (400) per hour, except as herein 
otherwise provided. 

2. A person whose earning capacity is limited because of age or 
physical or mental handicap may be emploj^ed on light work at 
a Avagc 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 Avages and for such hours as shall be stated in the certificate. 
Each employer shall file Avith the Code Authority a list of all such 
persons emploA^ed by him. 

3. Female emploA'ees performing substantially the same Avork as 
male employees shall receive the same rate of pay as male employees. 

4. This article establishes a minimum rate of paA' Avhich shall 
apply, irrespecti\"e of whether an employee is actually compensated 
on a time rate, piece-Avork performance or other basis. 

5. It is the policA' of the members of this industry to refrain from 
reducing the compensation for employment Avhicli compensation 
Avas prior to June 16, 1933, in excess of the minimum Avage herein 
set forth, notAvithstanding that the hours of Avork in such employ- 
ment may be reduced; and, unless since such date such adjustments 
have been made, all members of this industry shall endeavor to 
increase the pay of all employees in excess of the minimum Avage, 
as herein set forth, by an equitable adjustment of all pay schedules. 

Ai?Tici-E 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 



145 

nature or danj^orous to liealth. The Code Authority shall submit 
to the Administrator within sixty (GO) days from effective date of 
this Code, a. list of sucli operations or occupations. In any State an 
employer shall be deemed to have complied with this provision as 
to aiie if he shall have on file a certificate or permit duly signed by 
the xVuthority 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 rejn-esentatives of their own choosing, and shall 
be fi'ee 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 concei-ted 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 compan}^ union 
or to refrain from joining, organizing or assisting a labor organiza- 
tion of his own choosing, ancl 

(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. Xo employer shall reclassify employees or duties of occupations 
performed or engage in any other subterfuge for the purpose of 
defeating the purposes or provisions of the Act or of this Code. 

4. Every employer shall provide for the safety and healtli of em- 
ployees during the hours and at the places of their employment. 
Standards for safety and health shall be submitted by the code au- 
thority to the Administrator within six montlis after the effective 
date of tlie code. 

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, sani- 
tary or general working conditions than are imposed by this Code. 

6. All employers shall post and keep posted complete copies of the 
hour, wage and general labor pro^dsions of this Code in conspicuous 
places accessible to employees. 

Article VI — Administration 

ORGANIZATION AND CONSTITUTION 

1. A Code Authority is hereby established to cooperate wdth the 
Administrator in the administration of this code and shall consist 
of eight (8) members, three (3) of whom shall be chosen by the 
Curled Hair Manufacturing Industry and five (5) shall be chosen 
by the Horse Hair Dressing Industrj'^, through a fair method of 
selection approved by the Aclministrator. The Administrator in his 
discretion may appoint not more than three (3) additional members 
without vote and without compensation from the industry, to serve 
for such period of time and to represent the Administrator or such 
group or groups as he may designate. The members of the Code 
Authority from the Curled Hair Manufacturing Industry and the 



146 

members of the Code Authority from the Horse Hair Dressing In- 
dustry shall be the sole Code Authority on all matters pertaining 
evclusively to their respective industries. 

2. Each trade oi- industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority shall 
impose no inequitable restrictions on membership, and shall submit 
to the Administrator true copies of its articles of association, by- 
laws, regulations and any amendments when made thereto, 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 industries 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 trul}^ 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. Any member of the industries 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 the approval of the Admin- 
istrator, on the basis of volume of business and/or such other factors 
as may be deemed fair and equitable. 

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

6. Powers and Duties. — The Code Authority shall have the fol- 
lowing further powers and duties : 

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

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

(c) To obtain from members of the industries such information 
and reports as are required for the administration of the Code and 
to provide for submission by members of such information and re- 
ports as the Administrator may deem necessary for the purposes 
recited in Section 3 (a) of the Act, which information and reports 
shall be submitted by members to such administrative and/or goA'- 
ernment agencies as the Administrator may designate; provided that 
nothing in this Code shall relieve any member of the industries of 



147 

any existing obligations to furnish reports to any government agency. 
No individual reports shall be disclosed to any other member of the 
industries 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 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 industries. 

(f) (1) It being found necessary to support the Administration 
of this Code, in order to effectuate the policy of the Act and to 
maintain the standards of fair competition established hereunder, 
the Code Authority is authorized : 

(a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes and to meet such obli- 
gations out of funds which shall be held in trust for the 
purposes of the Code and raised as hereinafter provided; 

(b) To submit to the Administrator for his approval, subject 

to such notice and opportunity to be heard as he may 
deem necessary: 

1. An itemized budget of its estimated expenses for the 

foregoing purposes, and 

2. An equitable basis upon which the funds necessary 

to support such budget shall be contributed by all 
members of the Industry entitled to the benefits 
accruing from the maintenance of such standards, 
and the administration thereof; 

(c) After such budget and basis of contribution have been ap- 

proved by the Administrator, to determine and collect 
equitable contributions as above set forth, and to that end, 
if necessary, to institute legal proceedings therefor in 
its own name. 
(2) Each member of the industry shall be liable for his or its 
equitable contribution to the expenses of the maintenance of the 
Code Authority as liereinabove provided. Only members of the in- 
dustry complying with the Code and making such contribution shall 
be entitled to participate in the selection of the members of the Code 
Authority or to receive the benefits of its voluntary activities or to 
make use of any N.K.A. insignia. 

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

(h) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provisions to 
govern members of the industry in their relations with each other or 
with other industries; measures for industrial planning, and stabili- 
zation of emplo3'ment ; and including modifications of this Code 
which shall become effective as part hereof upon approval b}^ the 
Administrator after such notice and hearing as he may specify. 



148 

(i) To appoint a Trade Practice Committee which shall meet 
^Yith the Trade Practice Committees appointed under such other 
codes as may be related to the industry for the purpose of formulat- 
ing fair trade practices to govern the relationships between employ- 
ers under this code and under such other codes to the end that such 
fair trade practices may be proposed to the Administrator as amend- 
ments to this code and such other codes. 

(J) To provide appropriate facilities for arbitration, and sub- 
ject to the approval of the Administrator, to prescribe rules of 
procedure and rules to effect compliance with awards and deter- 
minations. 

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 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 thirty (30) days' notice to him of inten- 
tion to proceed with such action in its original or modified form. 

Article VII — Trade Practice 

1. No member of the industries 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 with- 
out limitation" its use, trade mark, grade, quality, quantity, origin, 
size, substance, character, nature, finish, material, content or prepa- 
ration), or credit terms, values, policies, services or the nature or 
form of the business conducted. 

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

3. No member of the industries shall brand or mark or pack any 
goods in any manner which is intended to or does deceive or mislead 
purchasers with respect to the brand, grade, quality, origin, size, 
substance, character, nature, finish, material, content or preparation 
of such goods. 

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

5. No member of the industries shall publish or circulate unjusti- 
fied or unwarranted threats of legal proceedings which tend to or 
have the effect of harassing competitors or intimidating their cus- 
tomers. Failure to prosecute in due course shall be evidence that 
any such threats is unwarranted or unjustified. 

6. No member of the industries shall ship goods on consignment 
except under circumstances to be defined and applied uniformly by 
the Code Authority, wdiere peculiar circumstances of the industries 
require the practice. 

7. No member of the industries shall attempt to induce the breach 
of an existing contract between a competitor and his customer or 



149 

source of supply; nor shall any such member interfere with or 
obstruct the performance of such contractual duties or services. 

8. No member of the industries shall require that the purchase or 
lease of any goods be a prerequisite to the purchase or lease of any 
other goods. 

9. No member of the industries shall join or participate with other 
members of the industries who, with such member, constitute a sub- 
stantial number of members of the industries, or who together control 
a substantial percent of the business in any specific product or prod- 
ucts of the industries, in any transaction known in law as a blacklist, 
including any practice or device (such as a white list) which accom- 
plishes the purpose of a blacklist. 

10. No member of the industries shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influencing 
or rewarding the action of any 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 
Imowledge 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 
defined. 

Article VIII — Merchandising 

The follovring provisions of this Article shall apply to and affect 
only the members of the Curled Hair Manufacturing Industry. 

1. The Code Authority for the Curled Hair Manufacturing Indus- 
try shall forthwith recommend to the Administrator for his approval 
an adequate method of cost finding which shall contain the principal 
elements of cost and which shall be capable of uniform application 
within the industry. Within thirty (30) days after such method 
shall have been approved by the Administrator, it shall be used as a 
basis for determining individual cost, and thereafter no member of 
the industry shall sell his products at a price below his own indi- 
vidual cost, except as hereinafter provided. 

2. Each member of the industry shall file with the Code Authority 
within thirty (30) days after such method of cost finding shall have 
been approved by the Administrator, a schedule of prices and dis- 
counts at which he proposes to sell the products of this Industry 
whicli shall become effective upon the date of filing thereof and no 
member of the Industry shall sell any of his products at a price lower 
or discount greater than those which he currently has on file with 
the Code Authority. Revised price lists and/or discounts may be 
filed by any member of the industry at any time thereafter to become 
effective upon the date of the filing thereof. All such price lists and 
discounts so filed shall be made available by the Code Authority to 
all members of the industry and to any other interested party upon 
request therefor. 

3. -Vny member of the industry may sell his products at a price 
less than his own individual costs in order to meet bona fide compe- 
tition in any specific instance, provided, such price is not less than 
the price of the lowest competing item on file with the Code 
Authority. 



150 

4. Any membor of the industry may sell discontinued, obsolete or 
distress merchandise at a price less than his own individual cost 
with the approval of the Code Authority upon such terms and con- 
ditions as it may specify. Appeal from the decision of the Code 
Authority upon any application for the sale of such merchandise 
may be had direct to the iVdministrator and the decision of the 
Administrator in such cases shall govern the sale and disposal of 
the merchandise covered by the application. 

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 subsection (b) of Section 10 of the Act, from time to time 
to cancel or modify any order, approval, license, rule or regulation 
issued under said Act. 

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

Article X — Monopolies, Etc. 

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

Article XI — Price Increases 

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

Article XII — Effective Date 

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



Approved Code No. 427. 
Registry 1627-02. 



o 



Approved Code No. 428 
CODE OF FAIR COMPETITION 

FOR THE 

MECHANICAL PACKING INDUSTRY 

As Approved on May 14, 1934 



ORDER 



Code of Fair Competition for the Mechanical Packing 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 Mechanical Packing Industry, 
and hearings having been duly held thereon and the annexed re- 
port on said code containing findings with respect thereto, having 
been made and directed to the President. 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recov- 
ery, 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 re- 
spects 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, 

D {vision A d minis t rat or. 

Washington, D.C, 

May U, 19P4. 

50023° 544-84 34 (1^51) 



EEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The original Code of Fair Competition for the Mechanical 
Packing Industry was submitted on August 31, 1933, by the Mechan- 
ical Packing Association, an unincorporated membership society or- 
ganized in 1933 representing the majority of the known members of 
the industry and about 80 per cent in volume of production. Several 
revisions of the code were made prior to the public hearing held 
on April 2, 1934. The code was revised during the recess of this 
hearing and is submitted in its final form for approval. Every 
person who requested an appearance was properly heard in accord- 
ance with statutory and regulatory requirements. 

The Mechanical Packing Industry, as defined in this code under 
terms of Industry and Industry Products, is engaged in the manufac- 
ture and original sale of products or devices employed to create a 
gaseous or liquid seal on moving or stationary mechanical parts. 
The Industrj'- Products (known to the trade as Mechanical Packing) 
of this Industry do not include identical products as governed by 
other Codes of Fair Competition lieretofore or hereafter approved; 
provided, the preponderant activities of such codes do not relate 
to the manufacture and original sale of Mechanical Packing. 

The Industr}'^ comprises about 85 members, employing in normal 
times about 1500 employees. The Code is presented by the Mechan- 
ical Packing Association who represent, as members, a majority of 
the members of Industry by number, and approximately 80 per 
cent of production by volume. For the entire Industry the estimated 
invested capital and annual production capacity since 1928 are 
rated at $8,500,000 and $25,000,000 respectively. It is estimated that 
approximately 80 per cent of their output is utilized as replacements 
and about 20 per cent represent new installation. 

The number employed in this Industry declined successively 
each year since 1929, when the average was 1,700, until the inaugu- 
ration of the Recovery Program in 1933. The low point in employ- 
ment occurred between November, 1932, and March, 1933, when the 
average was 859, a decline of 49.5 per cent. Employment last 
reported was in August, 1933, wlien the number of wage earners 
had increased to 1,550 — 80.4 per cent above tlie low point, and only 
8.8 per cent under the 1929 level. Much of this increase was due to 
the fact that more than half the members of the Association (with 52 
per cent of the employees) had signed tlie President's Reemploy- 
ment Agreement at the time of reporting this increased number of 
workers. 

The maxinnun week of 40 hours as specified in the code is 13 
per cent under the average worked in 1929. In August, 1933, more 
than half of the members of Industry (with 52 per cent of em- 

(152) 



153 

ployees) had signed the President's Reemployment Agreement, and 
hours had been reduced to 42.9 per week. The 40 hour provision 
of this code will further increase employment by about seven per 
cent over the August, 1933, level. 

The minimum of 40 cents for males and 35 cents for females 
provided in this code will directly affect 26.8 per cent, and ap- 
proximately 72 per cent of the male and female employees respec- 
tively, and as a result of increased rates of pay, payrolls will be 
increased 21.2 per cent over that of August, 1933. The percentage 
of male and female employees is approximately 80 per cent and 
20 per cent respectively. 

By the adoption of the 40 cent minimum rate, 26.8 per cent of 
the male employees will enjoy an increased earning due to the fact 
that this percentage of male employees was formerly paid less than 
40 cents per hour. The minimum of 35 cents per hour for female 
employees will affect approximately 72 per cent who were formerly 
paid less than 35 cents per hour. 

Article I : States the purpose of the code. 

Article II : Accurately defines specific terms applicable to the 
Mechanical Packing Industry as used in this code. 

Article III : The maximum hours are limited to forty hours per 
week. Watchmen shall be permitted to work 56 hours per week with 
one day rest in every seven. No person employed in clerical or office 
work shall be permitted to work in excess of forty hours in any one 
week, except that for one week in any one month period such em- 
ployee may be permitted to work a maximum of forty-eight hours. 
Employees engaged in a managerial, executive, or supervisory capac- 
ity who receive not less than Thirty-Five Dollars i^er week, or to 
technical staffs (excluding highly skilled workers engaged in pro- 
duction) or to outside salesmen, are not subject to any hourly limi- 
tations. The maximum hours shall not apply in cases of emergen- 
cies or repair where safet}^ of life or health or protection of property 
necessitates longer hours. 

Article IV: No emplo^-ee, except as otherwise specified, sliall be 
paid in any pay period less than at the rate of forty cents per hour, 
except that for such light work as does not usually require the 
strength and skill of male labor, and for which male labor is not 
used, the minimum rate paid to female employees shall be at the rate 
of thirty-five cents per hour. The minimum rates herein provided 
shall be construed as hiring rates applying to totally unskilled or 
common labor. Other classes of labor shall be compensated at rates 
above such minimum. The established minimum rate of pay for the 
work performed in any pay period shall apply irrespective of 
whether an employee is actually compensated on a time rate, piece 
rate, or other basis. Provision is also made for the employing of 
handicapped persons. No accounting, clerical, sales, or service em- 
ployee in any office shall be paid less than at the rate of Fifteen 
Dollars per week, except that office boys and girls and messengers 
may be paid at a rate not less than 80% of the minimum paid office 
employees. 

Article V. No person under 18 years of age shall be employed in 
the Industry except in clerical, office, sales, service, technical and 
engineering departments, or as a messenger, and no person under 16 



154 

years of age shall be employed in any capacity. This Article also 
gets forth the mandatory provision respecting the rights of employ- 
ees to organize and bargain collectively. 

Article VI : Establishes a Code Authority consisting of live voting 
members, four of whom shall be elected by the members of the 
Mechanical Packing Association and the other such member by the 
Members of Industry who are not members of the Mechanical Pack- 
ing Association. The selection of all members to the Code Authority 
shall be by a fair and equitable method of election to be approved by 
the Administrator. In addition to the organization of the Code 
Authority, the powers and duties thereof are outlined in this Article. 

Article VII : Sets forth fair trade practices for the Industry. 

Article VIII : 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 ajiy order, approval, license, rule or 
regulation issued under Title I of said Act. Provision is made that 
an amendment may be proposed by any interested party. Provision 
is also made so that the Code Authority may make recommendations 
for modifications of this code to the Administrator which shall be- 
come effective as a part of this code upon approval by the Adminis- 
trator after such notice and hearing as he may prescribe. 

Article IX : No provision of this code shall be so applied as to per- 
mit monopolies or monopolistic practices or to eliminate, oppress or 
discriminate against small enterprises. 

Article X: This code shall become effective ten days after its 
approval by the Administrator. 

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

I find that : 

(a) Said code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
i-emoval of obstructions to the free flow of interstate and foreign com- 
merce which tend to diminish the amount thereof and will provide 
for the general welfare by promoting the organization of Industry 
for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by elimi- 
nating unfair competitive practices, by promoting the fullest possible 
utilization of the present productive capacity of industi'ies, 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 ujiemployment, 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 xVct, including without limitation 
subsection (a) of section 3, subsection (a) of section 7, and subsection 
(b) of section 10 thereof, and that the applicant association is an in- 



155 

(liistrial ass(Kiation truly representative of the aforesaid Industry, 
and that said association imposes no inequitable restrictions on ad- 
mission to membership therein. 

(d) The code is not designed to and -will not permit monopolies 
or monoj^olistic practices. 

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

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

For these reasons, therefore, this code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator, 
May 14, 1934. 



CODE OF FAIR COMPETITION FOR THE MECHANICAL 
PACKING 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 Mechanical Packing Industry and its provisions shall be the 
standards of fair competition for such Industry and are binding 
upon every member thereof. 

Article II — Definitions 

Wherever used in this Code or any supplement appertaining 
thereto, the terms enumerated in this Article shall have the meanings 
herein defined. 

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 Recover}" Act. 

Section 3. The term " Administrator " means the Administrator 
for Industrial Recovery. 

Section 4. The term " Mechanical Packing Industry " or " Indus- 
try " as used herein includes the manufacture and the original sale 
of industry products by a Member of Industry either by himself or 
his agent, which includes without limitation any person or corpora- 
tion occup3dng a subsidiary or controlling relationship, or one ot 
common, mutual or joint ownership or control, to a Member of 
Industry. 

Section 5. The term " Industry Products " (known to the trade 
as "■ Mechanical Packing ") as used herein shall mean products, or 
devices, employed to create a gaseous or liquid seal on moving or 
stationary mechanical parts (these parts commonly include valve 
stems, rods, plungers, pistons, and tubes, used in connection with 
pumps, valves, compressors, engines, boilers, condensers, and other 
mechanical equipment; also joined surfaces such as flanges or heads 
used on boilers, piping, engines, or other vessels and containers). 

(a) The term '' Industry Products " for this " Industry " for the 
purposes of this Code does not include identical products as governed 
by other Codes of Fair Competition heretofore or hereafter ap- 
proved; provided, the preponderant activities of such Codes do not 
relate to the manufacture and original sale of " Mechanical 
Packing ". 

Section 6. The term " Member of Industry " includes, but with- 
out limitation, any individual, partnership, association, corporation 
or other form of enterprise engaged in the Industry, either as an 
employer or on his or its own behalf. 

(156) 



157 

Section 7. The term '' Eniployec " means and includes anyone 
engaged in tlie Industry in any capacity receiving compensation for 
his services, irrespective of the nature or method of payment of such 
compensation, except a Member of Industry. 

Sectiox 8. The term '• P'.mployer '" means and includes anyone by 
whom any such emplo3-ee is emi)loyed or compensated. 

Section 0. The term "Association '' shall mean the Mechanical 
Packing Association, an unincorporated membership society organ- 
ized Jul}' 1938, having its principal office in New York City. 

Section 10. The term '* Secretary "' as used herein shall mean the 
Secretary of the Mechanical Packing Association, who shall also be 
the Secretary of the Code Authority. 

Article III — Hours of Labor 

MAXIMUM HOURS 

Section 1. No emplo3'ee shall be permitted to work in excess of 
forty (40) hours in any one (1) week or eight (8) hours in any 
twentj'-four (24) hour period, except as herein otherwise provided. 
A normal work day shall not exceed eight (8) hours, 

HOURS FOR clerical AND OFFICE EMPLOYEES 

Section 2. No person employed in clerical or office work shall be 
permitted to work in excess of forty (40) hours in any one w'eek, 
except that for one (1) week in any one (1) month period such em- 
ployee may be permitted to work a maximum of forty-eight (48) 
hours. A normal work day shall not exceed eight (8) hours. 

exceptions as to hours 

Section 3. The maximum hours fixed in Section 1 of this Article, 
and the provisions of Section 8 of this Article, shall not apply to 
emjDloyees engaged in emergency maintenance or emergency repair 
work, involving breakdown or protection of life or property; pro- 
vided, that in such special cases not less than one and one-half (II/2) 
limes the normal wage rate for am^ employee so employed shall be 
paid for all hours worked in excess of forty (40) hours per week, or 
eight (8) hours per day. 

Section 4. The maximum hours fixed in this Article, and the 
provisions of Section 8 of this Article shall not apply to persons 
engaged in a managerial, executive, or supervisory capacity who 
receive not less than Thirt^^-Five Dollars ($35.00) per week; or to 
technical staffs (excluding highly skilled workers engaged in pro- 
duction) ; or to outside salesmen. 

Section 5. The maximum hours fixed in Section 1 of this Article 
III shall not apply to watchmen, who may be permitted to work 
not more than fifty-six (56) hours per week; provided, that such 
employees shall have at least one (1) day's rest in each seven (7) 
day period. 

Section G. There may be a tolerance of 10% additional hours 
over the maximum hours in any week, or the normal work day, for 

59023 ° — —544-84 34: 2 



158 

employees engaged in the preparation, care and maintenance of 
machinery and production facilities, firemen, engineers, stock and 
shipping employees and truckmen ; provided, however, that at least 
one and one-half (1%) times the normal wage rate for any 
employee so employed shall be paid for all hours worked in excess 
of eight (8) hours per day or forty (40) hours per week. 

Section T. During any period in which a concentrated demand 
upon any division of the Industry shall place an unusual and tem- 
porary burden for production work upon its facilities, or to meet 
seasonal or peak requirements, or production emergencies, an 
employee may be permitted to work not more than forty-eight 
(48) hours per week in not more than six (6) weeks in the first six 
(6) months of a calendar year, and for not more than six (6) weeks 
in the last six (6) months of a calendar year; provided, that in 
such special cases at least one and one-half (IV2) times the normal 
wage rate shall be paid to any employee so employed for hours 
worked in excess of forty (40) hours in an}^ one (1) week, or eight 
(8) hours in any one (1) day. 

STANDARD WEEK 

Section 8. No employee shall be permitted to work more than 
six (6) days in any seven (7) day period. 

EMPLOYMENT BY SEVElt;\L EMFLOYEKS 

Section 9. No employer shall knowingly permit any employee to 
work at any time, which, when totalled with that already performed 
with another emploj^er or employers in this Industry or other 
Industries, exceeds the maximum permitted herein. 

Article IV — Wages 

MINIMUM WAGES 

Section 1. No employee, except as herein otherwise specified, shall 
be paid in an}' pay period less than at the rate of forty cents (400) 
per hour, except that for such light work as does not usually require 
the strength and skill of male labor, and for which male labor is not 
used, the minimum rate paid to female employees shall be at the rate 
of thirty-five cents (35(?) per hour. The minimum rates herein 
provided shall be construed as hiring rates applying to totally 
unskilled or common labor. Other classes of labor shall be com- 
pensated at rates above such minimum. Wages which were in effect 
prior to date of approval of this Code, which were above the mini- 
mum, shall in no ease be reduced. 

CLEKICAL AND OFFICE EMPLOYEES 

Section 2. No accounting, clerical, sales, or service employee in 
any office shall be paid less than at the rate of Fifteen Dollars 
($15.00) per week of forty (40) hours; provided, however, that 
office boys and girls and messengers nuiy be paid at a rate not less 



159 

than 80% of the minimum hereinabove specified; and provided 
further, that the number of such boys and girls and messengers so 
paid shall constitute not more than 5% of the total number of such 
employees of anj' office of any one employer, but in any case each 
employer shall be entitled to at least two (2) such employees. 

(a) No employees in this class in regular employment shall have 
tlieir compensation reduced on account of any reduction in weekly 
hours of emplovment made because of the requirements of x^rticle 
III. 

(b) Part time employees shall be paid an hourly rate which shall 
not be less than the pro rata amount of the weekly wages specified in 
Section 1 of this Article IV. 

PIECEWORK COMPENSATION MINIMUM WAGES 

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

female employees 

Section 4. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees, and when they displace male employees they shall receive 
the same rate of pay as the men they displace. The Code Authority 
shall, within ninety (90) days after the effective date of this Code, 
file with the Administrator a description of all occupations in the 
Industry in which both men and women are employed. 

wages above the minimum 

Section 5. Equitable adjustments in all pay schedules of employ- 
ees shall be made within thirty (30) days after the effective date of 
this Code by any employer who has not heretofore made such adjust- 
ments under the National Industrial Recover}^ Act. In no event, 
however, shall wage rates be reduced. "Within sixty (60) 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 subse- 
quent to date of approval of this Code to the Code xVuthority. 

handicapped persons 

Section G. A person whose earning capacity is limited because of 
r.ge, physical or mental handicap, or other infirmit}-, 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 
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. 



160 

PAYMENT OF WAGES 

Sectiox 7. An employer shall make payment of all wages in law- 
ful currency or by negotiable check therefor, payable on demand. 
These wages shall be exempt from deductions for any payments 
other than those voluntarih^ ordered paid by the wage earners, or 
required by state laws. Pay periods shall be at least semimonthl}^, 
and for salaries at least once per month. Employers shall not with- 
hold wages, except as otherwise provided by lav,'. 

Article V — General Labor Provisions 

CHILD labor 

Section 1. Xo person under 18 years of age shall be employed 
in the Mechanical Packing Industry except in clerical, office, sales, 
service, technical and engineering departments, or as messengers, 
and no person under IC years of age shall be employed in any ca- 
pacity. In an}' state an employer shall be deemed to have complied 
Avith this provision as to age of employees if he shall have on file 
a certificate or permit duly signed by the authorit}' of such state 
empowered to issue employment or age certificates or permits show- 
ing that the employee is of the required age. 

provisions of the act 

Section 2. (a) Employees shall have the right to organize and 
bargain collectivel}^ through representatives of their own choosing, 
and shall be free from the interference, restraint, or coercion of em- 
plovers of labor, or their agents, in the designation of such represen- 
tatives 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 emploA'ment 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. 

reclassification of employees 

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. 

STANDARDS FOR SAFETY AND HEALTH 

Section 4. Every employer shall pro^•ide for the safety and 
health of emploA'ees during the hours and at the places of their em- 
ployment. Standards for Safety and Health shall be submitted by 
the Code Autliority to the Administrator witliin six months after 
the effective date of this Code. 



161 

STATE LAWS 



Section 5. No provision in this Code shall supersede any state 
or federal law which imposes on employers more stringent require- 
ments as to age of employees, wages, hours of work, or as to safety, 
health, sanitary or general working conditions, or insurance, or fire 
protection, than are imposed by this Code. 

POSTING 

Section" 6. All employers shall post and keep posted complete 
copies of this Code and all amendments thereto in conspicuous 
places accessible to employees, and shall comply with all rules and 
regulations relative to posting which may from time to time bo 
prescribed b}' the Administrator. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

organization and constitution 

Section 1. A Code Authority to administer this Code is hereby 
constituted consisting of five (5) voting members. Four (4) of such 
voting meinbers shall be elected by the members of the Mechanical 
Packing Association and the other such voting member shall be 
elected by the Members of Industry who are not members of the 
Mechanical Packing Association. The Secretary of the Mechanical 
Packing Association shall be the Secretary and a non-voting member 
of the Code Authority. The selection of all members to the Code 
Authorit}'' shall be by a fair and equitable method of election to 
be approved by the Administrator. In the event that the selection 
of the non-member of the Mechanical Packing Association is not 
made within thirty (30) days after the effective date of this Code, 
such member may be selected by the Administrator. 

Section 2. In addition to the above membership there may be 
one and not more than three (3) additional members, without vote 
and without compensation by the Industry, to be appointed by 
the Administrator to serve for such terms as he may specify. 

Section 3. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Au- 
thority shall ; 

(1) Impose no inequitable restrictions on membership, and 

(2) Submit to the Administrator true copies of its Articles of 
Association, By-Laws, Rules and Regulations and any amendments 
when made thereto, together with such other information as to 
membership, organization and activities as the Administrator may 
deem necessary to effectuate the purposes of the Act. 

Section 4. In order that the Code Authority shall at all times 
be truly representative of the Industry and in other respects com- 
ply with the provisions of the Act, the Administrator may pre- 
scribe such hearings as he may deem proper; thereafter, if he shall 
find that the Code Authority is not truly representative or does 
not in other respects comply with the provisions of the Act, he may 



162 

require an appropriate modification in the method of selection of 
the Code Authorit}'. 

Section 5. Members of Industry shall be entitled to participate 
in and share the benefits of the activities of the Code Authority 
and to participate in the selection of the members thereof by as- 
senting to and complying with the requirements of this Code and 
sustaining their reasonable share of the expenses of its adminis- 
tration. Such reasonable share of expenses of administration shall 
be determined by the Code Authority, subject to review and ap- 
proval by the Administrator, on the basis of volume of business 
and/or such other factors as may be deemed equitable. The non 
payment of such equitable assessment shall be a viohrtion of the 
Code. 

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

POWERS AND DUTIES 

Section 7. Subject to such rules and regulations as may be issued 
by the Administrator, the Code Authority shall have the following 
further powers and duties, the exercise of which shall be reported 
to the Administrator and shall be subject to his right, on review, 
to disapprove any action taken b}^ the Code Authority. If the 
Administrator shall determine at any time that any action of the 
Code Authorit}^ 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 days' 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 to 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. To receive complaints of violations of this Code and 
disputes arising thereunder, make investigations thereof, provide 
hearings thereon, adjust such complaints and make such decisions 
as are necessary thereon and to bring violations of this Code to the 
attention of the Administrator for prosecution, recommendation and 
other action, subject to such rules and regulations as the Adminis- 
trator ma}^ prescribe. 

(c) To adopt By-Laws, Rules and Regulations for its procedure 
and for the administration of this Code. The Code Authority shall 



163 

promptly furnish to the Administrator true copies of the By-Laws, 
Rules and Reirulations ado})ted pursuant to this paragraph. 

(d) To obtain from JNIembers of the Industry through a confiden- 
tial agency such statistical information and reports as are required 
for the administration of this Code and to provide for submission 
by membe!-s of Industry of such statistical information and reports 
as the Administrator may deem necessary for the purposes recited 
in Section 3 (a) of the Act, which information and re))orts shall be 
submitted by iVIembers of Industry to such Federal or State agencies 
as the Administrator may designate; provided, that notliing in this 
Code shall relieve any Member of Industry of any existing obliga- 
tions to furnish reports to any government agency. No individual 
reports submitted to the Administrator and/or such government 
agencies as the Administrator may designate shall be disclosed to any 
other Member of Industry or an}^ other party except to such govern- 
ment agencies as may be directed by the Administrator. To this end 
the Secretary of the Mechanical Packing Association is designated 
the agent of the Code Authority for the collection and compilation 
of statistical data, reports, and information from Members of In- 
dustry. 

(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, provided that nothing herein shall relieve the Code Authority 
of its duties or responsibilities under this Code and that such trade 
associations and agencies shall at all times be subject to and comply 
with the provisions hereof. 

(f) To make recommendations t-o the Administrator for the coor- 
dination of the administration of this code with such other codes, if 
any, as may be related to or affect the Members of Industry. 

(g) To cooperate with the Administrator in regulating the use of 
any X.R.A. insignia solely by those ^Members of Industry who have 
assented to, and are complyincr with, this Code. 

(h) To recommend to the Administrator further fair trade prac- 
tice provisions to govern Members of Industry in their relations with 
each other or with other Industries, and to recommend to the Admin- 
istrator measures for industrial planning, including stabilization of 
employment. 

(i) To secure from Members of Industry an equitable and pro^ 
portionate payment of the reasonable expenses of maintaining the 
Code Authority and its activities, and to this end the Code Author- 
ity has the right to establish a label which shall be sold only to those 
Members of Industry who assent to this Code. 

(j) To make studies with a view to the establishing of classifica- 
tions and standards of quality for products of the Industry in coop- 
eration with some federal agency, preferably the Bureau of Stand- 
ards of the United States Department of Commerce. 

Article VII — Marketing and Trade Practice Rules 

TRADE PRACTICE RULES 

Section 1. The following trade practices are declared to consti- 
tute unfair methods of competition between Members of Industry 



164 

and no Member of Indnstn- shall use or engage in any of them, 
either directly or indirecth\ through any officer, agent or employee. 
Engaging in any one or more of these provisions, or any further 
trade proA'isions, which hereafter may be established upon recom- 
mendation by the Code Authority, and approved by the Administra- 
tor, after such notice and hearings as he may prescribe, shall be 
deemed a violation of this Code. 

Section 2. No Member of Industry shall knowingly publish adver- 
tising (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 or products 
of Industry (including, but without limitation, its use, trade-mark, 
grade, quality, quantit}', weight, origin, size, substance, character, 
nature, finish, material, content, or preparation) or make any mis- 
representation as to credit terms, values, policies, services, or the 
nature or form of the business conducted. 

Section 3. The imitation or copj'ing of written or oral forms of 
trade-marks, trade names, or slogans used by a competitor. 

Section 4. No Member of Industry shall knowingly withhold 
from or insert in any quotation or invoice any statement that makes 
it inaccurate in any material particular. 

Section 5. To ship or in any way deliver free goods of any 
kind to any customer, for customer's own use or for resale by the cus- 
tomer, except that a Member of Industry may furnish to a customer 
without charge a limited amount of material or product strictly for 
test application and determination as to its serviceability. 

Section 6. To guarantee the serviceability of any product for any 
period of time, or sell on an approval basis. Any warranty shall be 
limited to a guarantee against defects in materials or workmanship, 
and obligations under such warranty shall be limited to the replace- 
ment of defective materials. 

Section 7. To subsidize buyers by special donations or by pa3'ing 
or assuming any part of their expenses or losses which are not ex- 
tended alike to all buyers. 

Section 8. Enticing away an employee or employees of competi- 
tors with the intent of unduh" hampering, injuring, or embarrassing 
a competitor or competitors in the conduct of their business; pro- 
vided, however, that nothing in this paragraph shall prevent an em- 
ployee from offering his services to a Member of Industry, nor pre- 
vent a Member of Industry from employing the employee of another 
Member of Industry, where the initiative in such change is taken by 
the employee. 

Section 9. To purchase from a customer or prospective customer 
as a consideration of a sale, any commodity at higher than prevailing 
open market prices, or repurchase at gi'eater than customer's replace- 
ment cost an}^ product of a Member of Industry's own manufacture. 

Section 10. To acquire, by purchase or exchange, the industry 
products of another Member of Industry from any customer or pros- 
pective customer for the purpose of influencing the sale of merchan- 
dise to such customer. 

Section 11. To subnormally price any other product or prod- 
ucts of a Member of Industry for the purpose of influencing the sale 
of industry products of this Industry. 



165 

Sectiox 12. To permit sp^.esiiien to split or share their commis- 
sions or other comperisatiojis with any customer or customer's agent. 

Section 13. To make excessive allowance for alleged shortages, 
or excessive adjustment of complaints. 

Section 14. To extend abnormal sales service assistance or Uiiu- 
sual volume of credit in order to thereby influence sales, and to 
fail to charge interest at six (G) per cent on customers"' notes cov- 
ering past due accounts. 

Section 15. To ship goods on consignment except where pecul- 
iar circumstances of the Industry require the practice. Such ex- 
ce})tions shall be defined by the Code Authority with the approval 
of the Administrator and shall apply alike to all IMembers of 
Industry. 

Section 10. To make excessive expenditures for entertainment 
of a customer or prospective customer or their employees, or give 
any gratuity or make any loan, or otherwise improperly influence 
business. 

Section 17. To make any contract with any purchaser whereby 
the purchaser is to be protected against a decline in price. 

Section 18. 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 rela- 
tion to the business of the employer of such employee, the principal 
of such agent or the represented party. This commercial bribery 
provision shall not be construed to prohibit free and general dis- 
tribution of articles conmionly used for advertising except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

Article VIII — Modification 

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

Section 2. Such provisions of this Code as are not required to be 
included therein by the Act may, with the approval of the Adminis- 
trator, be amended as provided in Section 3 of this Article VIII 
hereof, in such manner as may be indicated by the needs of the public, 
by changes in circumstances, or by experience. All of the provisions 
of this C ode. unless so modified or eliminated, shall remain in effect 
until June 16, 1935. 

Section 3. An amendment may be proposed by any interested 
party, either to the Code Authority or directly by or to the Admin- 
istrator. All proposed amendments shall be referred to the Code 
Authority, who shall give Members of Industry an opportunity to 
be heard thereon ; and thereafter, the Code Authority may make 
such recommendations thereon as is deemed proper; provided, how- 
ever, that when approved by the Administrator, as necessary to 
effectuate the policies of the Act, after such notice and hearing as he 
may prescribe, any proposed amendment shall thereupon become 
effective as a part of th-S Code. 



166 

Sectiox 4, The Code Authority may make recommendations for 
modification of this Code to the Administrator which shall become 
effective as a part of this Code upon approval by the Administrator 
after such notice and hearing as he may prescribe. 

Article IX — Monopolies 

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

Article X — EFF^cTI^'E Date 

This Code shall become effective ten (10) days after its approval 
by the Administrator. 

Approved Code No. 428. 
Registry No. 1637-11. 

O 



Approved Code No. 429 

CODE OF FAIR COMPETITION 

FOR THE 

CANNED SALMON INDUSTRY 

As Approved on May 15, 1934 



ORDER 



CoDi<: OF Fair Competition for the Caxxed Salmon 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 Canned Salmon 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 : 
Armin W. Riley, 

Division Administrator. 

Washington, D.C, 

May 15, lOSJ^. 

09379° 544-88 34 (1(J7) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the hearing of the Code of Fair Compe- 
tition for the Canned Sahiion Industry. Tliis hearing was held at 
the Palace Hotel in San Francisco, California, on February 26 and 
27, 1934. 

GENERAL 

The Canned Salmon Industr;- is carried on in three areas of the 
United States — Alaska, Puget Sound, and Columbia River. The 
pack for 1933 amounted to 6,335,185 cases, having a value of 
$37,405,382. Of this pack, approximately 82% Avas put up in Alaska, 
12% in Puget Sound, and 5% on the Columbia River. The Industry 
dates back to 1866 on the Columbia River, 1874 on Puget Sound, 
and 1878 in Alaska. While the pack has not varied proportionately, 
the number of canneries operating in Alaska has declined from 240 
in 1930 to 75 in 1933 due to a concentration of operations resulting 
from business failures. Many physical problems are presented to 
the Industry by the geographical location of the chief fishing 
grounds and canneries. Special labor problems associated with 
recruiting, housing, transportation, et cetera, are created by the 
remoteness of most canneries from population centers. 

Fishing for salmon is almost entirely controlled by the Bureau 
of Fisheries, and the size of the pack varies considerably over a five 
year cycle. The length of the fishing season is limited by the Bureau 
of Fisheries, and in Bristol Bay extends only for a thirty day period 
with sixty hours of closed time each week, making a total fishing 
season of about twenty-one days net. In Southeastern Alaska, the 
season is somewhat longer, while in Puget Sound and on the Colum- 
bia River the season is greatly extended. Due to the unusual con- 
ditions surrounding this Indastr3^ there have been violent fluctua- 
tions in daily and weekly hours worked by employees. The Bureau 
of Fisheries imposes a rigid regulation against the destruction of 
fish, and, therefore, it is necessary for a packer to can all fish that 
is caught and brought to the cannery. Since about 75% of all labor 
used in Alaska is imported, it is impossible to make any arbitrary 
restriction of hours due to the fact that it is impossible to get addi- 
tional workers on short notice.- 

The most unusual feature of emploAmient relations in the Canned 
Salmon Industry has to do with the practice of hiring imported 
labor through the device of a third party or labor contractor. In 
the past, men hired in the United States and shipped from San Fran- 
cisco and Seattle for employment in the canneries were exclusively 
employed under such an arrangement. The contractor has been re- 

(1C8) 



169 

imbursed by the packer on the basis of a fixed sum per case packed 
with a minimum guarantee by the packer. This system on numerous 
occasions has invoked the severest criticism, and it is known tliat it 
has cloaked serious, if not horrible, abuses. The Industry proposes 
in its Code to eliminate the contract system entirely, and only those 
who are thoroughly familiar with the conditions that have existed 
can appreciate what a tremendous forward step this action promises 
for labor. It is estimated that approximately 20,000 persons are 
employed regularl}^ by this Industry during the peak of packing op- 
erations, and that, at least, two-thirds of this number have been 
Oriental contract workers in the canneries. 

ETFECT OF LABOR PROVISIONS 

Under the Code, a stipulation is made that all employment 
contracts must be between the members of the Industry and 
their employees and provide for direct payment of compensation 
to these emploj'ees. Possible conflict with Section 7-A of the Act 
is covered by a qualifying sentence stipulating that no such conflict 
shall be construed or permitted. It is impossible in this Industry to 
provide for any substantial increase of employment except by 
requiring enough personnel in each cannery for a two shift opera- 
tion inasmuch as 75% of the labor must be transported two thou- 
sand miles, or more, and the volume of work to give double shift 
employment normally occurs only on two or three days of the 
season. A double shift requirement would be entirely unreasonable 
and would increase costs out of all reasonable proportion to existing 
conditions. The Code, however, does restrict hours of work except 
under certain emergency conditions, which it must be admitted 
may obtain at any time during the short fishing and canning period. 
Statistics gathered over past years indicate that the average hours 
worked by a canneiy employee from the date of employment to 
the date of discharge are not excessive due to long inactive periods 
combined with comparative!}^ brief periods of long hours. While 
overtime has not been paid generally, it is provided for in the case 
of cannery workers who are employed on an hourly basis outside 
of Alaska. Contracts of employment which are to be uniform 
for the Industry and whose terms are subject to the approval of 
the Administrator provide also for additional compensation in the 
case of certain monthly cannery workers for hours worked in ex- 
cess of ten hours per day and also when engaged in construction 
work or trucking work at the canneries. 

A large percentage of the fishermen are taken to Alaska under 
collective bargaining agreements negotiated by the Alaska Fisher- 
men's Union, The terms of these agreements are very advantageous 
for the fishermen, and the relationship between the Alaska Fisher- 
men's Union and the employers is entirely satisfactory. The Code 
places no limitation upon the hours of work of fishermen while en- 
gaged in the fishing operation or in tending traps or marine equip- 
ment necessary to the taking of fish. The impracticability of any 
limitation in connection with such operations has been recognized 
in the Fisheries Code. 



170 

The minimum wage rate in the Code is $50.00 per month in addi- 
tion to board and lodging, which, when furnislied in Alaska, gen- 
erally costs in the neighborhood of $1.00 per day. This minmium 
is for cannery employees, whereas outside employees are guaranteed 
a minimum of $70.00 per month in Alaska when board and lodging 
are furnished. JNIinimum hourly rates are 37l^0 per hour for males 
and 321/20 per hour for females outside of Alaska, and 350 per hour 
regardless of sex in Alaska, when board and lodging are not furn- 
ished. "Wlien board and lodging are furnished to employees in 
Alaska employed on an hourly basis the minimum rate is 250 per 
hour. According to statistical analysis of former wage rates and 
according to testimony at the public hearing, these minimum rates 
provide for substantial increases over minimum rates obtaining in 
the past. In addition, it was established by evidence at the public 
hearing that contract workers seldom receive more than one-third 
of the amount called for in a contract after deductions have been 
made by contractors. 

The Deputy in charge of the public hearing in San Francisco and 
of the post-hearing conferences reports that the highest degree of 
cooperation was afforded by the Industry to the representatives of 
the Recovery Administration, both during the hearing and the post- 
hearing conferences. He also reports that the final agreement by 
members of the Industry on the general provisions of the Code 
represent for the first time in the history of the Industry that it has 
been possible for any substantial number of packers to agree on any 
common program or policy. 

I find that: • 

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

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

(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 Association of 
Pacific Fisheries is an industrial association truly representative of 
the aforesaid Industry; and that said association imposes no in- 
equitable restrictions on admission to membership therein. 



171 

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

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

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

For the above reasons, this C^jdc has been approved. 
Respectfully, 

Hugh S. Johnson, 

Adniimstrator. 
May 15, 1934. 



CODE OF FAIR COMPETITION FOR THE CANNED 
SALMON 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 Canned Salmon Industry, and shall be the 
standard of fair competition for such Industry and shall be binding 
upon every member thereof. 

Article II — Definitioxs 

Section 1. Canned Salmon hidustry. — The term " Canned Salmon 
Industry " or " industry " as used herein means and includes canning 
of salmon in hermetically sealed containers thereafter sterilized by 
heat, which term shall include the catching, canning, packing, orig- 
inal sale of canned salmon by those engaged in canning salmon, and 
other incidental and related activities carried on by those otherwise 
within this industr}' to the extent that such activities are not subject 
to another approved Code of Fair Competition or to the extent that 
such activities have been exempted from any other such Code. 

Section 2. Meviber of the Industry. — The term " member of the 
industry " as used herein means and includes, but without limita- 
tion, any individual, partnership, association, corporation or other 
form of enterprise engaged in the industry, either as an employer 
or on his or its own behalf. 

Section 3. Employee. — The term " employee " as used herein 
means and includes any and all persons engaged in the industry, 
however compensated, except a member of the industiy. 

Section 4. Act and Administrator. — The terms ''Act " and "Ad- 
ministrator " as used herein mean respectively Title I of the National 
Industrial Recover}' Act, and the Administrator for Industrial 
Recovery. 

Section 5. Watchman. — The term " watchman " as used herein 
means an employee 90% of whose time is spent in watching and 
guarding the premises and property on shore of a member of the 
industry. 

Section 6. President. — The term " President " as used herein 
means the President of the United States. 

Section 7. Buyer. — The term " buyer " as used herein shall mean 
any buyer other than an ultimate consumer. 

Section 8. Outside Salesman. — The term " outside salesman " 
means any salesman who is engaged 60% of his time outside the 
establishment of a member of the industry and who does not deliver 
merchandise. 

(172) 



173 

Sectton 9. /Suhskliai'j/ or A-fJiliafc. — Tho term "subsidiary" or 
"affiliate" means any partnersliip, association, corporation, or other 
business unit over which an}' other individual, partnership, asso- 
ciation, corporation, or other business unit has, either directly or 
indirectly, actual or legal control, whether by stock ownership or 
in any other manner. 

Sectiox 10. Export Sales. — The term " export sales " means and 
includes sales of canned salmon shipped and/or delivered to pur- 
chasers outside of the several States, the District of Columbia, the 
territories of Hawaii and Alaska, and the Canal Zone. 

Abticle III — Hours 

Section 1. Xo 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. 

(a) Chauffeurs, delivery men, cannery employees, and employees 
engaged on shore in preparation for or following the fishing season, 
shall not be permitted to work in excess of forty-eight (48) hours 
in any one week, or eight (8) hours in any twenty-four (24) hour 
period beginning at midnight. 

(b) Watchmen shall not be permitted to work in excess of fift}^- 
six (56) hours per week or eight (8) hours in any twenty-four (24) 
hour period beginning at midnight. 

(c) Clerical and office employees may be permitted to work an 
additional period or periods not to exceed in the aggregate forty 
(40) hours in any one (1) year for financial closing or inventory 
taking purposes. 

Section 2. The provisions of this Article shall not apply to 
employees working under the following conditions: 

(a) Persons employed in an executive, managerial, or supervisory 
capacity who earn regularly one hundred and twenty-five dollars 
($125.00) per month or more when board and lodging are furnished 
to such employees, or who earn regularl}' one hundred and fifty dol- 
lars ($150.00) per month or more when board and lodging are not 
furnished to such employees; inter-season caretakers living at the 
cannery; cannery cooks; and outside salesmen. 

(b) Employees engaged in emergency construction, emergency 
maintenance, or emergency repair work, in emergency preparation 
on shore for the opening of the fishing season, or in emergency load- 
ing and unloading vessels and the preparation therefor, including 
emergency casing and labeling, where the continuation of such work 
is subject to weather or marine conditions, fish congestion or any 
irregularities of transportation, beyond the control of the employer. 

(c) Employees engaged in fishing, and employees engaged in 
driving, placement, construction, maintenance, and/or removal of 
traps, nets, or other fishing appliances, including those engaged" in 
the operation of vessels, piledriving, or other marine equii^ment 
assisting in the performance of such work, but this exception shall 
not include employees engaged in shore work in preparation for or 
following the fishing season where such work is not affected by 
weather, marine or transportation conditions. 

59379° 544-88 34 2 



1T4 

(d) Employees ^YO^king during canning periods wlien sucli work 
is necessary to j^rcserve fresh salmon. 

Article IV — Wages 

Section 1. Xo employee working in the Industry elsewhere than 
in Alaska, employed on an hourly basis, shall be paid less than at the 
rate of thirty-two and one-half cents (32i/o0) per hour for females, 
or thirty -seven and one-half cents (371/2^) per hour for males. 

No employee working in Alaska, employed on an hourly basis, 
shall be paid less than at the rate of twenty-five cents (25^) per hour 
when board and lodging are furnished to such emploj^ee, or less than 
at the rate of thirty-five cents (o5^-) an hour when board and lodg- 
ing are not furnished to such employee. 

Section 2. No emplo^^ee employed on a monthly basis whose work 
is principally within the cannery building shall be paid less than at 
the rate of fift}^ dollars ($50.00) a month when board and lodging- 
are furnished to such employee, or less than at the rate of seventy- 
five dollars ($75.00) per month when board and lodging are not 
furnished to such employee. 

No other employee employed on a monthly basis, including office, 
accounting, and clerical employees, shall be paid less than at the rate 
of seventy dollars ($70.00) a month when board and lodging are 
furnished to such employee, or less than at tlie rate of ninety-five 
dollars ($95.00) per month when board and lodging are not furn- 
ished to such employee, excepting that outside of Alaska no such 
employee shall be paid less than at the rate of sixty dollars ($60.00) 
a month when board and lodging are furnished to such employee 
or less than at the rate of seventy-five dollars ($75.00) per month 
when board and lodging are not furnished to such employee. 

Section 3. No employee outside of the Territory of Alaska com- 
pensated on an hourly basis shall be paid less than at the rate of 
time and one-third for each hour worked in excess of ten (10) hours 
in any twenty-four (24) hour period beginning at midnight. At 
the beginning of each season each employer sliall designate one day 
in the calendar week which shall normally be a day of rest for such 
employees. No employee covered by this section shall be compen- 
sated at less than the overtime rates established in this section for 
any time worked on any such day of rest. 

Section 4. When employees are transported from the United 
States proper to Alaska they shall be paid from the day of depar- 
ture until the day of return to the port of embarkation, except for 
delay due to shipwreck or other unusual delay beyond the control 
of the member of the industr3\ Any such delay shall be reported 
to the Administrator. 

Seciton 5. This article establishes minimum rates of pay for all 
employees in the industry which shall apply irrespective of whether 
an employee is actually compensated on a time rate, piece work, or 
other basis, except for fishermen compensated on a per unit of fish 
basis. 

Section G. Female emploj'ees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees. 



175 

Section" 7. A person whose earning capacity is limited because 
of age, physical or mental handicap, or other infirmity, may be 
employed on light work at a wage below the minimum established 
by this Code, if the employer obtains from tiic State Authority des- 
ignated by the United States Department of Labor, or from the 
Governor of the Territory of Alaska for employees in Alaska, a 
certificate authorizing such person's employment at such w'ages 
and for such hours as shall be stated in th.^ certificate. Such author- 
ity shall be guided by the instructions of the United States De- 
partment of Labor in issuing certificates to such persons. Each 
employer 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 work for such employee. 

Section 8. "Whenever the minimum rates adopted by this Code 
result in decreasing differentials existing between different classes 
of employees on June 15, 1933, there shall be an equitable adjustment 
in order to maintain such differentials. In no such case shall hoiudy 
or monthly rates be reduced. 

Section 9. When employees are hired avray from the cannery, 
where marine transportation to and from the cannery is necessary, 
such transportation, except to the port of general embarkation, shall 
be furnished free except as hereinafter provided. 

Article V — General Labor PR0^^SI0Ns 

Section 1. No person under sixteen (16) years of age shall be 
emploj'ed in the industry. No member of the industry operating in 
Alaska shall take to Alaska any employee under eighteen (18) years 
of age. 

No person imder eighteen (18) years of age shall be employed at 
operations or occupations which are hazardous in nature or dan- 
gerous to health. The Code Authority shall "within sixty (60) days 
after the effective date of this Code submit to the Administrator a 
list of such operations or occupations. 

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

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

Section 4. Employers shall comply with the maximum hours of 
labor, minimimi rates of paj^, and otlier conditions of employment 
approved or prescribed by the President. 

Section 5. No employer shall reclassify employees or duties of 
occupations performed or engage in any subterfuge for the purpose 
of defeating the purposes or provisions of the Act or of this Code. 

Section 6. Eveiy employer shall provide for the safety and health 
of employees during the hours and at the places of their employment. 



176 

Standards for safety and health shall be submitted by the Code 
Authority to the Administrator within six (G) months after the 
effective date of the Code. 

Sectton 7. No provision in this Code shall supersede an}^ State, 
Federal or Territorial law which imposes on employers more strin- 
gent requirements as to age of employees, wages, hours of work, or 
as to safety, health, sanitary or general working conditions, or 
insurance, or fire protection than are imposed by this Code. 

Sectiox 8. Cannery rules and regulations shall be subject to the 
Administrator's disapproval and shall not be in conflict with any pro- 
vision of this Code. 

Sectiox 9. No member of the industry' shall hire any employee 
except by contract directlj^ with such employee providing for pay- 
ment of all compensation, less onh' deductions specifically authorized 
in this Code, directly to such employee by the member of the industry 
and every member of the industry shall furnish to each of his em- 
ployees a cop3' of any contract signed by such employee. The purpose 
of this Section is to prohibit systems of contract labor, but shall not 
be applied so as to modify or qualif}' Sections 2 and 3 of this Article. 

Section 10. Emj^loyment contracts shall not be in conflict Avith any 
provision of this Code, and every employer shall insert in such con- 
tract specific reference to this Code and to the fact that the provisions 
of such contract are in all respects subject to the provisions of this 
Code. 

Section 11. There shall be no charges or deductions from wages 
except pursuant to court order or except as hereinafter provided. 

Section 12. Any school, poll, or other taxes assessed by any State 
or Territory against employees and paid by an employer an behalf 
of the employee may be deducted from wages due. Deductions for 
compensation insurance, or hospitalization, authorized by State or 
Territorial law, and paid by an employer on behalf of the employee, 
may also be deducted from w'ages. Deductions for other purposes 
not heretofore stated may be made only when provided by written 
contract in conformity with standard provisions submitted to the 
Administrator in accordance with Section 8 (k) of Article VI. and 
kept on file b}- the employer for six (6) months after the termination 
of the contract for the inspection of Government representatives. 

No amount shall be deducted from the compensation of any employee 
for gambling debts incurred by the employee, or for narcotic drugs or 
intoxicating liquor sold or delivered to any employee or prospective 
employee, and no employment fee, either direct or indirect, shall be 
decluctecl from the compensation of any employee or prospective 
employee. 

No member of the industry shall directly or indirectly coerce or 
in any way compel any employee to purchase merchandise from 
employer's commissary, nor shall any member of the industry 
directly or indirectly as a condition of emploj'ment compel the 
purchase of merchandise from any other person. 

Section 13. Unless otherwise provided by contract, employees in 
Alaska shall be paid at least once a month. No member of the in- 
dustry shall, pursuant to contract or otherwise, make payment of 
wages, less advances, credits, allotments and/or deductions as 
herein permitted, later than fort3'-eight (48) hours, Sundays and 



177 

hoHdays excepted, after return of employee to port of embarkation. 

Sectiox 14. All persons employed in the United States proper, for 
work in Alaska shall be furnished free transportation except as 
hereinafter provided, to and from Alaska; wholesome and ade- 
quate meals during said transportation and while at the cannery, 
suitable and sanitary living quarters; and such first aid in case of 
accident or sickness as is reasonably possible under the circum- 
stances, and transportation as soon as is reasonably possible to a 
place where professional medical attention can be procured. 

Section 15. Charges to an employee for merchandise purchased at 
the employer's commissary shall be reasonable. 

Section 16. Members oi the industry operating in Alaska shall, as 
far as practicable endeavor to employ competent bona fide Alaska 
residents where available. 

Section 17. Members of the industry who purchase salmon from 
independent fishermen shall pay for such salmon on delivery, or shall 
furnish such fishermen with written statements showing species, 
prices, quantities and terms of payment. Contracts entered into with 
employee fishermen shall be in writing and a copy of the contract 
shall be furnished to each such fisherman. Each member of the 
industry shall file with the Code Authority a statement showing by 
species the quantities of fish received and/or purchased from fisher- 
men and the prices paid for such fish. The Code Authority shall con- 
duct an investigation of the methods of purchasing fish, and recom- 
mend to the Administrator measures and/or modifications of this 
Code for the regulation of such purchasing. 

Section 18. All cannery rules and regulations shall be kept posted 
in conspicuous places accessible to all employees and no employee 
shall be suspended or discharged except by an owner or superintend- 
ent of a cannery in person for breach of employment contract or 
for violation of such cannery rules. 

Section 19. All employers shall keep posted the labor provisions 
of this Code in conspicuous places accessible to employees. Every 
member of the industry shall comply with all rules and regulations 
relative to the posting of provisions of codes of fair competition 
which may from time to time be prescribed by the Administrator. 

Article VI — Administration 

Section 1. A Code Authority is hereby established consisting of 
eleven persons to be selected in the following manner : 

(a) Two members shall be selected by the members of the indus- 
try operating in the Districts known as the Columbia River and 
Oregon and Washington Coasts up to Caj>e Flattery. 

(b) Two membei-s shall be selected by the members of the indus- 
try operating in the District known as Puget sound, in the State of 
Washington. 

(c) Two membei-s shall be selected by the members of the indus- 
try operating in the District known as Southeastern Alaska. 

(d) Two members shall be selected by the members of the indus- 
try operating in the District known as Central Alaska. 

(e) Two members shall be selected by the members of the indus- 
try operating in the District known as Western Alaska. 



178 

The above ten (10) members shall select the eleventh member 
from the entire industry. 

The foregoing districts of Alaska are those defined in the regu- 
lations of the United States Bureau of Fisheries, Department of 
Commerce. 

The Code Authority shall be selected as set forth above as soon 
as this Code shall become effective, and as nearly as possible an- 
nually thereafter. 

No more than one (1) person shall be elected to the Code Author- 
ity who is employed by or connected with any one (1) member of 
the industry, either directly or indirectly through a subsidiary, 
affiliate or otherwise. Members of the Code Authoritj^ shall be 
selected by the officers, executives, or oAvners of members of the in- 
dustry operating canneries in the respective districts. No member 
of the industry shall, either directly or indirectly, through a sub- 
sidiary, affiliate or otherwise, have more than one vote in any one 
district, but may have a vote in each district in which it operates 
one or more canneries. In the selection of members of the Code 
Authority with respect to each district, as above described, one-half 
of such members so to be selected shall be designated by the officers, 
executives or owners of members of the industry located in each 
such respective district which in the first instance for the season of 
1933, and thereafter any season preceding their selection, shall have 
canned 100,000 cases, or more, of salmon in that particular district, 
and the other one-half of said members of the Code Authority shall 
be designated by officers, executives or owners of members of the 
industry which shall have canned less than 100,000 cases in the 
preceding year. 

A floating cannery shall be considered as operating only in the 
district in which the largest portion of its pack is produced. 

Section 2. In addition to membership as above provided, there 
may be three members, without vote, to be known as Administration 
members, to be appointed by the Administrator for such terms as he 
may specify, without cost to the industr}^ 

Section 3. Each trade or industrial association directly or 
indirectly participating in the selection or activities of the Code 
Authority shall (1) impose no inequitable restrictions on membership, 
and (2) submit to the Administrator true copies of its articles of 
association, by-laws, regulations, and any amendments when made 
thereto, together with such other information as to membership, 
organization, and activities as the Administrator may deem nec- 
essary 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 proAasions 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 Avith the proA^isions of the Act, may require 
an appropriate modification of the Code Authority. 

Seciton 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 tlie members thereof by assent- 



179 

ing to and complying with the requirements of this Code and sus- 
taining their reasonable share of the expenses of its administration. 

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 emploj^ee 
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 an^'one for any action or omission to act under 
this Code, except for his own willfid malfeasance or nonfeasance. 

Section 7. If the Administrator shall determine that any action 
of ths Code Authority or any agency thereof is unfair or unjust or 
contrary to the public interest, the Administrator may require that 
such action be suspended to afford an opportunity for investigation 
of the merits of such action and further consideration by the Code 
Authoritj^ or agency pending final action, which shall not be effec- 
tive unless the Administrator approves or unless he shall fail to 
disapprove after thirty (30) days' notice to him of intention to pro- 
ceed with such action in its original or modified form. 

POWERS AND DUTIES 

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

(a) Subject to such rules and regulations which may be issued by 
the Administrator, 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. 

(c) To obtain from members of the industry such information and 
reports as are required for the administration of the Code, but the 
Code Authority shall so far as possible utilize reports required of 
members of the industry by existing State and Federal agencies. In 
addition to information required to be submitted to the Code Au- 
thority, members of the industry subject to this Code shall furnish 
such statistical information as the Administrator may deem neces- 
sary for tlie purposes recited in Section 3 (a) of the Act, to such 
Federal and State agencies as he may designate, provided that noth- 
ing in this Code shall relieve any person of any existing obligations 
to furnish reports to any Government agencies. No individual re- 
ports shall be disclosed to any other member of the industry or to 
any other party except to such other Government agencies as may 
be directed by the Administrator. 

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

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



180 

(f) To secure from each member of the industry subject to this 
Code his equitable and proportionate share of the reasonable ex- 
penses of maintaining the Code Authority and its activities, to be 
determined in accordance with rules and regulations issued by the 
Administrator on the basis of volume of business, and/or such other 
factors as may be deemed equitable, to institute legal proceedings in 
any court of competent jurisdiction and to take such other steps as 
may be approved by the Administrator as necessary and proper to 
bring about such contribution. 

(g) To cooperate with the Administrator in regulating the use 
of any N.E..A. insignia solely by those members of the industry who 
have assented to, and are complying with this Code and are bearing 
their proportionate share of the expense of its administration. 

(h) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provisions 
to govern members of the industry in their relations with each other 
or with other industries; measures for industrial planning, and 
stabilization of employment ; and including modifications of this 
Code which shall become effective as part hereof upon approval by 
the Administrator after such notice and hearing as he may specify. 

(i) To 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 coordinating the 
Administration of such codes with this Code and of formulating fair 
trade practices to govern the relationships between members of this 
industry and of such other trades/industries to the end that such 
fair trade practices may be proposed to the Administrator as amend- 
ments to this Code and such other codes. 

(j) To investigate and to inform the Administrator as to the effect 
of importation of competitive products into the United States. 

(k) To prepare and submit to the Administrator within thirty 
(30) days after the effective date of this Code, standard ])ro visions 
for employment contracts. Such standard provisions shall become 
effective unless disapproved by the Administrator within thirty (30) 
days after receipt, thereafter no member of the industry shall enter 
into a contract with any employee on terms less favorable to such 
employee than such standard provisions. 

(1) To investigate and submit to the Administrator within six 
(6) weeks after the effective date of this Code, recommendations 
for the minimum compensation of employee fisherman. Such recom- 
mendations when approved by the Administrator shall become effec- 
tive as part of this Code. 

(m) To appoint within one (1) month after the effective date 
of this Code, a committee to work in collaboration with such agencies 
as may be designated by the Administrator, to study classifications 
and standards of dimensions, qualities and labeling, and such in- 
spection to maintain these standards as are deemed feasible. The 
findings and recommendations of this committee shall, at the earliest 
possible date, be submitted to the Administrator. 

Article VII — Unfair Trade Practices 

For all purposes of the Code the Acts described in this Article 
shall constitute unfair methods of competition. Any member of the 



181 

industry who shall, directly or indirectly, through any officer, cm- 
ploj'ee, agent, or representative, use, employ, or permit to be em- 
ployed, any of such unfair methods of competition shall be guilty 
of a violation of the Code. 

Rule 1. Xo member of the industry shall sell any canned salmon 
except upon the basis of his open price. The term " open price " 
as used in this Article means a price which is published or available 
for the equal information of other members of the industry and of 
all buyers. " Price " includes not only the money consideration 
involved in a sale but also all other terms of the sale such as terms 
relating to delivery, payment, discounts (cash, quantity, etc.), rebates, 
freight and insurance, warehousing, and other matters. Subject 
to the approval of the Administrator, the Code Authority shall pre- 
scribe general rules for the classification of buyers designed to 
prevent a classification without economic justification and to permit 
a classification upon the basis of service required from the seller, 
and/or rendered by the buyer. Subject to the approval of the Ad- 
ministrator, the Code Authority shall also prescribe rules relative 
to the methods by which a price shall be published or made available. 
Nothing herein or in any rules prescribed shall prevent any mem- 
ber of the industry from changing his open price at any time or 
from time to time upon publication of the changed prices in accord- 
ance with the provisions of such rules. 

Rule 2. No member of the industry, shall directly or indirectly 
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 money's worth, which constitutes a price 
concession from his open price; nor shall a member of the industry 
offer or extend to any customer any special service or privilege not 
extended to all customers of the same class and stated in his open 
price. 

Rule 3. No member of the industry shall pay or allow any broker- 
age or commission except to its sales representatives, and then only 
for service actually performed; no brokerage or commission shall 
be paid or allowed, directly or indirectly, to a buyer, or the repre- 
sentative of a buyer, except where a sales representative customarily 
receiving commission or brokerage as his compensation for service 
actually performed does in the regular course of business and in 
good faith purchase and pay for canned salmon. No member of the 
industry shall permit a brokerage or commission to be paid or 
allowed to any buyer b}" employing a sales agency which such member 
of the industry knows or has reason to believe is dividing or will 
divide its brokerage or commission with any buyer. 

Rule 4. No member of the industry shall sell canned salmon at 
prices guaranteed against decline, except that sales made between 
July 1st (March 1st for chinook salmon and salmon packed on the 
Columbia River) and September 1st may be guaranteed until Sep- 
tember 1st against decline in seller's price provided that such guar- 
antee shall be limited to unshipped stocks, stocks in transit, or stocks 
in buyer's warehouse (excluding retail stores) at the time the price is 
changed. 

Rlxe 5. Unless otherwise authorized by the Code Authority, sub- 
ject to review by the Administrator, no member of the industry shall 



182 

sell any salmon for delivery later than sixty (60) days from the 
date of confirmation of sale, except that chinook salmon packed on 
the Columbia River maj^ be sold for delivery up to December 31st of 
the year of sale. 

Rule 6. Salmon shipped and not taken by buyers in accordance 
with the terms of the contract of sale may not be disposed of to other 
buj^ers by any member of the industry except upon the terms of the 
open price applicable to such buyers, unless the Code Authority shall 
specifically rule otherwise in any particular case. 

Rule 7. Within thirty (30) days after the effective date of this 
Code, the Code Authority shall prepare and submit to the Adminis- 
trator for his approval forms of uniform sales contracts, defining 
terms used in the trade, and on and after the thirtieth day after such 
approval no member of the industry shall sell any canned salmon 
except pursuant to such form of contract, except to the United States 
Government, any governmental agency, or any charitable organiza- 
tion wholly or partially supported by taxation. 

Rule 8. No member of the industry shall mark, brand, label, ad- 
v^ertise, offer, or bill canned salmon in any manner which is intended 
to or does deceive purchasers, or substitute inferior salmon for the 
species ordered. This prohibition shall include but not be limited 
by the following: 

(a) The use of labels on reprocessed salmon which do not plainly 
indicate that the salmon has in fact been reprocessed. 

(b) The use of labels which do not plainly indicate the species of 
salmon contained in the can. The only names to be used shall be 
the following commonly accepted names : Chinock, Spring, Tyee or 
King; Sockeye, Blueback or Quinsult, Alaska Red, Red or Alaska 
Sockeye; Medium Red, Cohoe or Silver; Pink; Chum or Keta; Steel- 
head, except for Chinock and Steelhead canned on the Columbia 
River. Existing stocks of labels and cans may be utilized provided 
that a record of such stocks of labels and cans and the final utiliza- 
tion thereof shall be filed with the Code Authority' ; and further pro- 
vided that this privilege may be exercised only during the 1934 
season. 

(c) No member of the industry shall sell any unlabeled canned 
salmon without obtaining from buyer a guarantee that the salmon 
will not be labeled in violation of this Rule. 

Rule 9. No member of the industry shall knowingly withhold 
from or insert in any quotation or invoice any statement that makes 
it inaccurate in any material particular. 

Rule 10. No member of the industry shall make any false state- 
ment, invoice, or report concerning any purchase or sale of raw fish. 

Rule 11. No member of the industry shall unfairly interfere with 
a competitor's business by uttering false statements about its busi- 
ness which disparage its business or products or by inducing a 
breach of its contracts, or by improper interference with a competi- 
tor's established fishing rights, or by accepting delivery of raw 
materials or products contracted to be delivered to another buyer 
when such delivery by the seller would constitute a breach of such 
contract as against such buyer, except with the consent of such 
buyer. 



183 

RtnLE 12. No member of the industry shall purchase any raw fish 
which he knows, or by the exercise of reasonable diligence should 
know, were taken from fishing gear without permission of the owner 
of said gear. 

Article VIII — Export Trade 

Section 1. No provision of this Code relating to prices or terms 
of selling, shipping or marketing, shall api^ly to export trade or sales 
or shipments for export trade. 

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 Act, from time to 
time to cancel or modify anj^ order, approval, license, rule or regu- 
lation issued under said Act. 

Section 2. This Code, except^as to provisions required by the Act, 
may be modified or revised on the basis of experience, or changes 
in circumstances. The Code Authority may make application to 
the Administrator for such modifications and revisions, and shall 
afford to members of the industry an opportunity to be heard 
thereon, and such modifications and revisions shall become effective, 
after such notice and hearing as the Administrator shall specify, on 
approval by the President. 

Article X — ISIonopolies, etc. 

Section 1. Xo provision of this Code shall be so applied as to 
permit monopolies or monopolistic practices, or to eliminate, op- 
press, or discriminate against small enterprises. 

Article XI — Price Increases 

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

Article XII — Effecttve Date 

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



Approved Code No. 429. 
Registry No. 10&-09. 



o 



Approved Code No. 430 

CODE OF FAIR COMPETITION 

FOR THE 

PACKAGE MEDICINE INDUSTRY 
As Approved on May 15, 1934 



ORDER 



Code of Fair Competition for the Package Medicine Industry 

An application having been duly made pursuant to and in full 
compliance Avith 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 Package Medicine 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 herebj'^ 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 there be added to Article II, Section 1 the following sentence : 

"' This definition does not include any retailer operating imder 
a retail code who performs any of the acts specified herein solely 
for the purpose of sale at retail to his own customers, and not for 
the purpose of sale to other distributors; provided, however, that 
Avhere a retailer operates a laboratory or plant distinct from his 
retail operations, and employs a special group of employees to work 
primarily in such laboratory or plant distinct from that group of 
his employees who work primarily in his retail establishment (s), 
and such laboratory or plant performs any of the acts specified 
herein, whether for sale to such retailer's own customers or to other 
distributors, such laboratory or plant is subject to the provisions 
of this Code." 

Hugh S. Johnson, 
Adtiiinistr'afor for Industrial Recoveinj. 

Approval recommended : 
H. O. King, 

Division A dministrator. 

Washington, D.C, 

May 15, 193 li. 

59380° U44-S7 34 (ISH) 



REPORT TO THE PRESIDENT 

The President, 

The ^Vll^te Home. 

Sir : This is a report on the Hearing on the Code of Fair Compe- 
tition for the Package Medicine Industry, held in the Carlton Room of 
the Carlton Hotel on January 17, 1934. The Code, which is attached, 
was presented by duly qualified and authorized representatives of 
the Industry, complying with statutory requirements and claiming 
to represent eighty-five per cent by volume of the Industry. 

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

TUB INDUSTRY 

The Industry comprises about 1,400 concerns, having an invest- 
ment in 1929 of approximately $160,000,000. Aggregate annual sales 
fell from $318,900,928 in 1929 to about $255,000,000 in 1932. In 1929 
the Industry employed 26,000 persons of whom 16,400 were wage 
earners. 

PROVISIONS OF THE CODE 

The Code provides a basic work week of fort}^ (40) hours, which 
is a reduction of 4.4 hours below tlie 1929 average. This reduction 
is not sufficient to restore employment entirely to the 1929 figure. 
However, it should be noted that iigures for November, 1933, indi- 
cate that employment has increased to about ninety (90) percent of 
the 1929 average. This increase can be attributed to the effects of 
the President's Reemployment Agreement and to the usual seasonal 
upturn. 

The minimum rates of pay in 1929, v>-ere generally less than 
twenty-five (25t^,) cents an hour in the South and less than thirty 
(300) cents in the North. The minhnum rates of thirtj^-five (35^) 
cents in the North and thirty-two and one-half (32i/>) cents in the 
South provided in this Code should provide minimum weekly earn- 
ings above those in 1929, notwithstanding the reduction in hours. 
Payrolls which fell oif about one-third (l^) during the depression 
had increased fifteen (15%) percent in November, 1933, from their 
low point. Compliance with the Code should show a further 
increase estimated slightly above ten (10%) percent. 

The Code contained a price stabilization provision when it was 
presented at the Public Hearing. This has been eliminated and 
replaced by an open price system designed to eliminate some of the 
competitive abuses in the Industry and to aid in stabilizing condi- 
tions found in the distributive branches of the Industry. 

(ISG) 



187 

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

FINDINGS 

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

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of inter-state and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adec}U.ite governmental sanctions and supervision, by elimi- 
nating unfair competitive practice, by promoting the fullest possible 
utilization of the present production capacity of industries, by 
avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial 
and agricultural products through increasing purchasing power, 
bj^ 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 per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof; and that the applicant 
group is an intiustrial group truly representative of the aforesaid 
Industry; and that said group imposes no inequitable restrictions 
on admission to membership therein. 

(cl) The Code is not designed to and Avill not permit monopolies 
or monopolistic practices. 

(e) The Code is not designed to and wnll not eliminate or op- 
press small enterprises and wdll not operate to discriminate against 
them. 

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

For these reasons, this Code of Fair Competition for the Package 
Medicine Indu.stry has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
May 15, 1934. 



CODE OF FAIR COMPETITION FOR THE PACKAGE 
MEDICINE INDUSTRY 

Article I — Purpose 

To effect the jwlicies of Title I of the National Industrial Recovery 
Act, the following provisions are established as a Cods of Fair Com- 
petition for the Package Medicine Industry, and shall be the standard 
of fair competition for such Industry and shall be binding upon 
every member thereof. 

Article II — Definitions 

Section 1. The term " Package Medicine Industry " as used herein 
shall mean the Industry, each member of which is engaged in the 
manufacturing and/or in having manufactured for him under his 
own brand and specifications, and/or in importing in consumer pack- 
ages for resale, and/or in packaging from bulk materials under his 
name or brand, dentifrices, mouth washes and medicinal prepara- 
tions, for the internal or external use of human beings or other ani- 
mals and primarily offered for sale to the general public usually as a 
complete formula in packages with directions for use ; and such 
related branches or subdivisions as may from time to time be included 
under the provisions of this Code by the President of the United 
States, after such notice and hearing as he may prescribe.^ 

Section 2. Th-e term " member of the Industry " as used herein 
shall mean any individual, partnership, association, corporation, or 
other form of enterprise engaged in the Industry, either as an em- 
ployer or on his or its own behalf. 

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

Section 4. The term '" employer " as used hei'ein includes anyone 
by whom such employee is com])ensated. 

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

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

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

Section 8. The term '' primary distributor " as used herein shall 
mean a wholesale dealer or retail dealer to whom a member of the 
Industry sells its j^roducts directly. 

' See pnrasraph 2 of cirdor apuri)viiig this Code. 

(18S) 



189 

Section 9. De-pnitions of pen-Oftnel. — (a) The term " executive " as 
used herein shall mean an eniphn-ee solely responsible for tlie manage- 
ment of a business or a recoouized subdivision thereof. 

(b) The terui '"outside salesman" shall mean a salesman who is 
engao-ed not less than sixty (GO) per cent of his workincr hours out- 
side the establishment, or any branch thereof, by which he is 
employed. 

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

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

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

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

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

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

Article III — Hours 

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

Section 2. No other employees except pharmacists, chemists, 
executives, and research and scientific workers earning in excess of 
thirty-five (35) dollars per w^eek, and outside salesmen, shall be 
permitted to work in excess of forty (40) hours in any one week 
or eight (8) hours in any twenty-four (24) hour period, except as 
hereinafter provided in Sections 3 and 4 of this Article, and in no 
event shall any such employee be permitted to work in excess of six 
(6) days in any consecutive seven (7) daj^s' period. 

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



190 

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

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

SectiOjST 5. No emploj-er shall knowingly permit any employee 
to work for any time which when totalled with that already per- 
formed with another employer, or emplo3"ers, exceeds the maximimi 
permitted herein. 

Article IV — Wages 

Section 1. No employee, other than apprentice office workers, 
and beginners and learners, shall be paid at less than the rate of 
thirty-five (35) cents per hour, except employees in the States of 
North Carolina, South Carolina, Georgia, Florida, Tennessee, 
Alabama, Mississippi, Arkansas, Louisiana, Oklahoma and Texas 
where the minimum rate shall be two and one half (21^) cents less 
per hour. 

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

Section 3. The weekly compensation of all emploj^ees as of June 
16, 1933, shall not bp reduced, notvv-ithstanding that the hours worked 
in such employment may be hereb}^ reduced. Methods of adjustment 
in hourly rates made since June 16, 1933 shall be reported to the Code 
Authority. 

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

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

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

Section T. A person whose earning capacity is limited because 
of age, phj^sical or mental handicap, or other infirmity, may be em- 
ployed on light work at a v/age below the mininuim established by 
a Code, if the employer obtains from the state authority designated 
by the United States Department of Labor, a certificate authorizing 
such person's employment at such wages and for such hours as 
shall be stated in the certiiicate. 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 month- 



191 

ly with the Code Authority a list of all such persons employed by 
liini. allowing the Avages paid to, and the maximum hours of work 
for, such employee. 

Article V — General Lahor Pro\isions 

Section 1. No person under sixte n (10) years of age shall be 
employed in the industry. No person under eighteen (18) years of 
age shall be emploj-ed at operations or occupations hazardous in 
nature or dangerous to health. The Code Authority shall submit 
to the Administrator within six (6) months after the effective date 
of this Code a list of such operations or occupations. In any State 
an employer shall be deemed to have complied with this provision 
as to age if he shall have on file a certificate or permit duly issued 
by the Authority in such State empowered to issue employment or 
age certificates or permits showing that the employee is of the re- 
quired 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 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 organi- 
zation of his ov\n choosing, and 

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

Section 3. No employer shall reclassify employees or duties of 
occupations performed or engage in any subterfuge for the purpose 
of defeating tlie provisions of the Act or of this Code. 

Section 4. Every employer shall provide for the safety and health 
of his employees at the place and during the hours of their employ- 
ment. Standards for safety and health shall be submitted by the 
Code Authority to the Administrator Avithin six (6) months after 
the effective date of this Code, and upon approval by the Adminis- 
trator such standards shall become operative as a part of this Code. 

Seciton 5. No provision in this Code shall supersede any State 
or Federal law which imposes more stringent recjuirements on em- 
ployers as to age of emploA'ees, wages, hours of work, or as to safety, 
health, sanitary or general conditions, or insurance, or fire protection, 
than are imposed by this Code. 

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

Section T. The hours worked by any employee, except outside 
salesmen, during each day shall be consecutive, provided that an 
interval not longer than one hour may be allowed for each regular 
meal period, and such interval not counted as part of the employee's 



192 

working time. Any rest period which may be given employees 
sliall not be deducted from such employee's working time. 
Section 8. No homework shall be alloAved in this industry. 

Article YI — Organization, Powers, and Duties of the Code 
Authority Orga>'izat]on 

Section 1. A Code Autliority is hereby constituted to administer 
this Code. This Code Autiiority shall consist of five (5) members 
selected as hereinafter provided, and in addition thereto, the Admin- 
istrator in his discretion may appoint not more than three addi- 
tional members, without vote and without expense to the Industry, 
to represent such groups or governmental agencies as lie may 
designate. 

Section 2. The industry members sliall be selected as follows : 
Upon approval of this Code, the Code Committee presenting this 
Code and the Industrial Advisor for this Industrv shall select a list 
of twenty (20) names of individuals identified with this Industry 
and representative of the various interests therein, not more than 
nine (9) of whom shall be members of any one trade association. 
This list, with the trade association and company affiliations of each 
individual opposite his name, shall be printed upon a ballot which 
shall in addition bear upon its face five (5) blank lines and a cer- 
tificate of assent to and compliance with this Code. This ballot to- 
gether with a copy of this Code shall be mailed to all members of the 
Industrv whose names are known or can be ascertained by diligent 
search by the Code Connnittee. Each such member of the Industry 
will be instructed that he must signify assent to and compliance with 
this Code in order that his vote shall be counted. Each member of 
the Industry signing the certificate of assent and compliance will be 
entitled to five (5) votes. The member of the Industry may select 
the individuals for whom he wishes to vote from the printed list 
upon the ballot or by Avriting in such other names as he wishes upon 
the blank lines provided therefor. The ballot as so marked, with the 
certificate of assent and compliance duh" signed, will be mailed to 
the Code Committee, who in counting the votes will be governed by 
the following rules : 

(a) The Industrial Adviser will aid and supervise in the counting 
of the votes. 

(b) A list shall be made of individuals in the order of the highest 
number of votes received per individual. In order that no one trade 
association shall have more than two (2) of its members upon the 
Code Authority, if the Code Committee shall find that the first five 
indivichials in order upon said list include more than two (2) mem- 
bers of any one trade association, the Code Committee shall delete 
from said list the names of the members of said trade association over 
the two receiving the highest number of votes and shall write in 
their places the names of the first individuals in order upon said 
list (after the first five) who are not members of said trade asso- 
ciation. 

(c) The individuals who stand as the first five on the list, after 
tlie above procedure has been carried out, shall be notified and shall 
take office as members of the Code Authority immediately upon their 



193 

acceptance of the office. If any iiulivicliial shall decline or be dis- 
qualified or unable to take odice, his name upon the list shall be 
replaced by the first name in order on said list (after the (^.rsi five) 
■which will not give any one trade association more than two (2) 
members on the Code Authority. 

(d) The Code Committee with the approval of the Industrial Ad- 
viser shall make such additional rules for the election as it deems 
necessary; and specifically shall make such rules as wnll enable the 
election to be completed within thirty (30) days after the effective 
date of this Code. 

Pending' the completion of the election of the industry members of 
the Code Authority, the members of the Code Committee will act 
as such industry members; provided that if such election is not 
completed within thirty (30) days after the effective date of this 
Code, the Administrator or his deputy may appoint five (5) indi- 
viduals, identified with this Industry and representative of the vari- 
ous interests therein, to act as the industry members of the Code 
Authority and to relieve the Code Committee of all duties herein 
delegated to it, and to serve until such election is completed. 

The members of the Code Authority shall serve for a term of one 
year from the date of taking olTice. At a sufficient time in advance 
of the end of the term of the memb?rs of the Code Authority, the 
Code Authority shall initiate and carry out an election of new mem- 
bers for the ensuing year, so that these new members shall take office 
at the end of the term of the old mem1)ers. The Code Authority 
shall assume the duties of the Code Committee and the Administra- 
tion Member shall assume the duties of the Industrial Advisor in 
carrying out said election by the method hereinabove set forth. 

If a vacancy occurs in the industry membership of the Code Au- 
thority, the remaining industry members shall elect a temporary 
member to fill such vacancy until the next regular election, provided 
that this temporary member shall be representative of the same trade 
association or independent interests that were represented by the 
member whose place he takes. 

Sectiox 3. Members of the Industry shall be entitled to participate 
in and share the benefits of the activities of the Code Authority and 
to participate in the election of tlie members thereof by assenting to 
and complying vrjth the requirements of this Code and sustaining 
their reasonable share of the expense of its achninistration. Such 
reasonable share of the expense of administration shall be determined 
b}^ the Code Authority, subject to approval by the Administrator, 
on the basis of volume of business and,^or such other factors as nvAj 
be deemed equitable. 

Sfxtion 4. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner 
to anyone for any act of any other member, officer, agent, or employee 
of the Code Authority. 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 aet under the 
Code, exce])t for his ovv'n willful misfeasance or nonfeasance. 

Section 5. Each trade or industi'ial association directly or indi- 
rectly participating in the selection or activities of the Code Author- 



194 

ity shall (1) impose no inequitable restrictions on membership, and 
(2) submit to the Administrator true cojoies of its articles of associa- 
tion, bj'-laws, rules or regulations, and all 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 6. In order that the Code Authority shall, at all times, 
be truly representative of the Industry and in other respects comply 
with the provisions of the Act, the Administrator may provide such 
hearings as he maj' 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. 

Section T. Powers and Duties. — The Code Authority shall have the 
following powers and duties : 

(a) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of this Code, in accord- 
ance with the powers herein granted, and to submit the same to the 
Administrator for his approval together vdth true copies of any 
amendments or addition when made thereto, minutes of meetings 
when held and such other information as to its activities as the Ad- 
ministrator may deem necessary to effect the purposes of the Act. 

(b) To obtain fron> members of the industry for use of the Code 
Authority, for the Administrator in the administration and enforce- 
ment of the Code, and for the information of the President, reports 
based on periods of one, two or four weeks, or multiples thereof, as 
soon as the necessary readjustment within the industry can be made 
and to give assistance to members of the industry in improying meth- 
ods or in jH'escribing a uniform system of accounting and reporting. 
All individual reports shall be kept confidential as to members of the 
industry and only general summaries thereof may be published. 

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

(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 association and agencies the cost thereof, pro- 
vided that nothing herein shall relieve the Code Authority of its 
duties or responsibilities under this Code and that such trade associa- 
tions and agencies shall at all times be subject to and comj)Iy with 
the provisions thereof. 

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

(f) Subject to the approval of the Administrator, to secure an 
equitable and proportionate payment of the expenses of maintaining 



195 

the Code Authority and its activities from members of the Industry 
assent inij to the Code. 

(a) To cooperate with the Administrator in reQ-ulating the use of 
the Xational Hecoverv Administration Code Insignia solely by 
those members of the Industry who are complyino: with this Code. 

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

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

Section 8. If the Administrator shall determine that any action 
of a code authority or any agency thereof may be unfair or unjust 
or contrary to the public interest, the Administrator may require 
that such action be suspended to afford an opportunity for investiga- 
tion of the merits of suoh 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, 

Sectiox 9. General Administrative Provisions. — In addition to 
the information required to be submitted to the Code Authority as 
set forth in this Article members of the Industry shall furnish such 
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 ; and nothing in 
this Code shall relieve any member of the Industry of any existing 
obligations to furnish reports to Government agencies. 

An appeal from an}' action by the Code Authorit}^ affecting the 
riglits of any employer or employee in the Industry may be taken to 
the Administrator. 

Article VII — Trade Practice PR0^^sI0^^s 

Section 1. (a) A member of the Industry shall sell his products, 
commodities or articles to primary distributors on an open price 
basis that is fair to all, with the same allowances, terms and prices 
as to products, quantities or trade classificatioas. 

(b) The term " open prices "' as used in this section means a price 
list which is published by each member of the Industry for the 
equal information of all })rimary distributors in the separate or the 
several classes of primary distributors, and which states all the pre- 
vailing terms of sale for the separate or the several classes of pri- 
maiy distributors. 

(c) Compensation paid to a primary distributor bj' a member of 
the Industry for cooperative aclvertising, counter displays, window 
displays, salesmen's efforts, or any other special sales activities, shall 
be uniform according to kind and scoi)e of services rendered, and not 
on a basis of discounts on quantity purchases. 

(d) Each member of the Industry or his agent shall file his cur- 
rent price list with the Code Authority within thirty (30) days after 



196 

the approval of this Code. Each member of the Industry shall file 
(by re<>;istered mail) an}' subsequent revision of such price list with 
said Code Authority. 

(e) This section shall not apply to the sale of private brand prod- 
ucts on contract by a manufacturer to the owner of such private 
brand, nor to the sale of products for export, nor to bids submitted 
to governmental units. 

Section 2. No member of the Industry shall use advertising, 
whether printed, radio, display or of any other nature, which is 
inaccurate in any material particular or misrepresents merchandise 
(including its use, trade mark, grade, quantity, size, origin, material, 
content preparation, credit terms, values, policies, or services), and 
no member of the Industry shall use advertising and/or selling 
methods concerning curative or therapeutic effects which are false 
and fraudulent. 

Section 3. No member of the Industry shall use advertising which 
refers inaccurately in any material particular to any competitor or 
his merchandise, prices, values, credit terms, policies, or services. 

Section 4. No member of the Industry shall give, j^ermit 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, princi^ial or party. 
This rule shall not be construed to prohibit the 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. 

Section 5. The repacking or transferring of any article from 
the container of the member of the Industry into another container, 
and the offering of such repackaged item for sale with intent or 
capacity to deceive the purchaser is an unfair trade practice. 

Section C. The unauthorized use of a copy, counterfeit, or color- 
able imitation of the trade-mark, label, or identifj'ing name or device 
of the product of another corporation, association, firm, or person 
which has the tendency and capacity to mislead purchasers or pro- 
spective purchasers is an unfair trade practice. 

Section T. No member of the Industry shall secretly offer or make 
any pa^'ment or allowance of a rebate, refund, commission, credit, 
unearned discount or excess allowance, whether in the form of money 
or otherwise, for the purpose of influencing a sale, nor shall a mem- 
ber secretly extend to any customer any special service or privilege 
not extended to all customers of the same class. 

Article VIII — Modifications 

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



197 

2. This Code, except as to provisions required by the Act, may be 
modified on the basis of experiences or changes in circumstances, 
such modification to be based n]K)n apjdication to the Achninistrator 
and such notice and hearing as he shall specify, and to become effec- 
tive on approval of the President. 

Article IX — Monopolies, Etc. 

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

Article X — Price Increases 

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

Article XI — General 

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

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

Article XII — Effective Date 

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



Aiiproverl Code No. 4.30. 
Registry No. e:)S-2-22. 



O 



Approved Code No. 431 

CODE OF FAIR COMPETITION 

FOR THE 

TOLL BRIDGE INDUSTRY 

As Approved on May 17, 1934 



ORDER 

Code of Fair Competition for the Toll Bridge 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 Toll Bridge Industry, and hearings having 
been duly held thereon and the annexed report on said Code, contain- 
ing findings with respect thereto, having been made and directed to 
the President: 

NO"\Yj THEREFORE, on behalf of the President of the United 
States, 1, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved, on condition, that: 

The definition of Industry as contained in Article IX of the Con- 
stitution of the American Toll Bridge Association be interpreted 
and amended to coincide with the definition of Industry contained 
in Article II, Section (a), of the Code of Fair Competition for the 
Toll Bridge Industry, and that the said Article IX be further 
amended and interpreted to permit the automatic admission to mem- 
bership in the American Toll Bridge Association of any member of 
the Toll Bridge Industry who applies and agrees to pay dues and 
assessments, and provided further, that 

Members of the Toll Bridge Industry which are publicly owned 
and/or operated may agree individually with the President to con- 
form to the standards of wages, hours and general labor conditions 
set forth in this Code, and thereupon they shall be granted all the 
benefits of known compliance with the National Industrial Recovery 
Act. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
K. M. SiaiPsON, 

Division Administrator. 

Washington, D.C, 

May 17, 193.^. 

60078° 544-431 34 (199) 



EEPORT TO THE PEESIDENT 

The President, 

The White House. 
Sm: The original Code of Fair Competition for the Toll Bridge 
Industry was submitted on August 10, 1933, by the American Toll 
Bridge Association, an unincorporated membership society organized 
in 1932, whose members represent in excess of fifty per cent of the 
total volume of the Industr3^ Several revisions of the Code were 
made prior to the public hearing, March 14, 1934. The Code was 
revised during recess of this hearing and was submitted in its present 
form for approval. Every person who requested appearance was 
properly heard in accordance with the provisions of the Act. 

HISTORY 

The first toll bridge in North America was built spanning the 
Newbury River at Rowley, Massachusetts, in 1654, and in 1778, the 
State of Pennsylvania authorized the building of a bridge across 
Conestaga Creek on the road from Philadelphia to Lancaster. 

The Industry began its period of greatest development in the 
year 1922, when extensive construction of highways took place. 
From 1922 to 1930 was a period of extensive expansion which per- 
haps has contributed largely to the extreme financial difficulties now 
existing in tlie Industry. 

With the introduction of motor vehicles during the early part of 
the present century, there was a radical change in the requirements 
of the public for transportation which necessitated the expenditure 
of large sums for the construction of adequate roads and bridges. 
The necessit}^ for a bridge becomes greatest when river navigation 
is closed during the winter or when the traffic reaches such volume 
it cannot be adequately handled by ferries. 

The United States Department of Agriculture, through its Bureau 
of Public Roads, indicates that there are 312 operating toll bridges 
in the United States or on the international boundaries. Of the 312 
toll bridges, 101 are operated by public agencies and 211 by private 
agencies. Of the 211 privately owned bridges, 39 are owned and 
operated by railroad and street car companies. 

For a long period of time, the War Department has had the author- 
ity to prescribe rates for toll bridges over navigable waters. Author- 
ization by a special Act of Congi-ess is required for any bridge be- 
tween two states where the bridge is constructed over navigable 
waters. In recent years, it has been the policy of Congress to insert 
recapture provisions in enabling Acts for the construction of toll 
bridges. In general, these recapture provisions set up an amortiza- 
tion plan under which the bridge property may be returned to some 
public authority and, usually, within a twenty-year period from the 
date of the construction of the bridge. 

(200) 



201 

In certain states, toll bridges are subject to regulation of rates 
by both the public service commission of the state and by the War 
Depa«"tment. As a matter of general practice, the state public serv- 
ice commissions have been exercising their jurisdiction in the matter 
of regulation of rates and, usually, the War Department does not 
exercise this jurisdiction where the state has the authority. 

Recently, this Industry has suffered a great decrease in traffic 
in addition to an increased unwillingness of the public to pay bridge 
tolls, all of which has brought the Industry to a state of comparative 
exhaustion from which its only hope of recovery is by improved 
general economic conditions. Further, it cannot hope to pass on 
any increased expenditure to the public since the trend of toll rates 
has been downward for the last several years and, in many cases, 
applications for rate reductions are now pending before state and 
municipal regulatory bodies. 

Any attempt to increase toll rates would divert traffic from toll 
bridges to free highway routes and to ferries when a lower rate exists 
even though such diversion would necessitate traveling many addi- 
tional miles. 

EMPLOYMENT 

Employees of this Industry usually live near bridge heads. On 
small bridges where traffic is light the employee and his family often 
reside in the toll house provided by the company either free of charge 
or for a nominal sum. 

Most employees of this Industry are not of the skilled class and 
their employment is regular and the labor turnover is low. 

PROVISIOXS OF THE CODE 

This Code provides for a basic forty hour week for employees with 
the exception that the operating group shall be permitted to work 
forty-eight hours per week. For maintenance, clerical, and all other 
employees, there is a limitation of eight hours in any twenty-four 
hour period. The hours provisions do not apply to employees in a 
managerial or executive capacity or superintendents and assistant 
superintendents who earn not less than thirty-five dollars per week. 
Provision is made for employees engaged in emergency work pro- 
vided that all such hours of work in excess of the maximum shall be 
paid for at the rate of time and one-half. 

Minimum wage rates are set for unskilled labor at thirty-five cents 
per hour in the North and twenty-eight cents per hour in Southern 
territory. For clerical and office employees the rate is fixed at not 
less than fifteen dollars per week, except that it is permitted that 
office boj's and office girls, not to exceed five per cent of the office and 
clerical force, (with a permissible minimum of two such persons) 
shall be paid at not less than eighty per cent of the minimum rate 
prescribed for this class. 

Employees on small bridges which regularly employ not more than 
two persons are exempted from the minimum wage and maximum 
hour provisions of this Code. 

The Code provides for adjustment of wages above the minimum, 
and in furtherance thereof a proposed schedule for wage adjustment 



202 

is to be filed with the Administrator within sixty days of the effective 
date of this Code. There is a further stipulation that in no event 
shall hourly rates of wages be reduced. 

In addition provision has been made for piece-work compensar 
tion, female employees, standard safety and health rules, state laws, 
posting, handicapped persons and non-reclassification of employees. 
Provision is also made that no person under eighteen years of age 
shall be employed in tlie Industry except as office boys and office 
girls, and no person under sixteen years of age shall be employed 
in the Industry in any capacity. 

ECONOMIC EFFECTS OF THE CODE 

The decline in employment in the Industry has not been severe 
when compared with many other industries. It dropped from ap- 
proximately 2,600 individuals in 1929 to 2,240 in 1933, representing 
13.6 per cent. This decline is less than the decrease in revenues. 

This Code will materially increase rates of wages and will tend 
to increase employment. Because of the small amount of statistical 
material available for this Industry, it is difficult to give exact 
figures as to the actual amount of employment it will produce or 
to what extent the annual payroll will be increased. 

This Industry employs but few individuals as compared with 
its large capital investment and, also, the opportunity for reemploy- 
ment is definitely limited. 

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 
comimerce 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 supervisions, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and reliev- 
ing unemployment, by improving standards of labor, and by other- 
wise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- 
ployees; and is not classified by me as a major industr3^ 

(c) The Code as approved complies in all respects with the perti- 
nent provisions of said Title I of said Act, including without limita- 
tion Sub-section (a) of Section 3, Sub-section (a) of Section 7, and 
Sub-section (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. 



203 

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

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

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

For these reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

A dminis tratoT^ 
May 17, 1934. 



CODE OF FAIR COMPETITION FOR THE TOLL BRIDGE 

INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is submitted as a Code of Fair Competition 
for the Toll Bridge Industr}^, and upon approval by the President, 
its provisions shall be the standards of fair competition for such 
industry and shall be binding' upon every member thereof. 

Article II — Definitions 

(a) The term "industry" means the Toll Bridge Industry which 
is defined as the operation and maintenance in the United States of 
bridges upon which tolls are collected for the passage of vehicles 
and/or pedestrians, and of approaches thereto, and of equipment used 
in connection therewith. 

(b) The term "member of the industry" means all who are 
engaged in the industry, either as an employer or on his or its own 
behalf, and includes, without limitation, any person, partnership, 
firm, association, trust or corporation so engaged in the industry. 
But the term does not include Federal, State, municipal, or other 
publicly operated plants, enterprises, or authorities, engaged in the 
industry, except in so far as any of them may voluntarily obligate 
themselves specifically to put into effect any or all of the provisions 
of this Code.'^ 

(c) The term " employee " as used herein includes and means any 
and all persons engaged in the industry, however compensated except 
a member of the industry. 

(d) The term " employer " as used herein means all those engaged 
in the industry by whom any such employee is compensated or 
employed. 

(e) The term " Southern territory '" means the States of Virginia, 
North Carolina, South Carolina, Georgia, Florida, Alabama, Ten- 
nessee, Mississippi, Arkansas, Louisiana, and Texas. 

(f ) The term " President " means the President of the United 
States of America. 

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

Article III — Hours 

No employee shall be permitted to work in excess of the following 
number of hours: 



* See paragraph 4 of order approving tbis Code. 

(204) 



205 

(a) Operating Group ^which includes all toll takers or collectors 
and those engaged in policing and directing traffic, and operating 
movable spans). — No employee in this group shall be permitted to 
work in excess of forty-eight (48) hours in any one week, except as 
herein otherwise provided. 

(b) Maintenance Group (which includes all those engaged in the 
maintenance and repair of toll bridges, approaches and equipment, 
and the care of the grounds). — No employee in this group shall be 
permitted to work in excess of forty (40) hours in any one week or 
eight (8) hours in any twenty-four (24) hour period, except as herein 
otherwise provided. 

(c) Clerical Groujy. — No clerical or office 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. 

(d) AU other Group. — No other 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. 

(e) Exception as to hours. — The provisions of this Article shall 
not apply to employees in a managerial or executive capacity, super- 
intendents and assistant superintendents, who earn not less than 
Thirty-five ($35.00) Dollars per week; nor to outside solicitors. 

(f) Emergency Work. — The provisions of this Article shall not 
apply to employees when engaged in emergency work, provided that 
all additional hours in excess of the applicable maximum per day 
and/or week hereinabove provided shall be paid for at the rate of 
time and one-half (l^/^). 

(g) Small Bilges. — Toll bridges in the industry which regularly 
employ not more than two (2) persons shall be exempt from the 
provisions of this Article. 

(h) Empl-oym-ent hy Several Employers. — No employer shall 
knowingly permit any employee to work for any time which, when 
totaled with that already performed with another emplo^^er or 
employers in this or any other industry, exceeds the maximum 
permitted herein. 

(i) Limitalion of Work. — No employee shall be permitted to work 
more than twenty-four (24) days in any twenty-eight (28) day 
period. 

Abticle IV — Wages 

No employee shall be paid less than the following rates : 

(a) Operating Group (which includes all toll takers or collectors 
and those engaged in policing and directing traffic and operating 
movable spans) and Mainteruince Group (which, includes all those 
engaged in the maintenance and repair of toll bridges, approaches 
and equipment and the care of the grounds). — No employees in the 
aforementioned groups shall be paid less than thirty-five (35) cents 
per hour, except that minimum wages shall not be less than twenty- 
eight (28) cents per hour in the Southern Territory. 

(b) Clerical Employees. — No clerical or office employee shall be 
paid at the rate of less than fifteen dollars ($15.00) per week ex- 
cept that office boys and office girls not to exceed five (5) per cent 
of the office and clerical force with a pennissable minimum of two 



206 

such persons, shall be paid not less than eighty (80) per cent of the 
minimum rate hereinabove prescribed. 

(c) All other Group. — All other employees shall be paid not less 
than thirty-five (35) cents per hour except that the minimum wages 
shall not be less than twenty-eight (28) cents per hour in the South- 
ern Territory. 

(d) Part-time Employees. — Part-time employees shall be paid not 
less than at the same rates as other employees doing similar work. 

(e) Small Bridges. — Toll bridges in the industry which regularly 
employ not more than two persons shall be exempt from the pro- 
visions of this Article. 

(f) Piecework Compensation — Minimum Wages. — This Article 
establishes a minimum rat€ of pay which shall apply, irrespective of 
whether an employee is actually compensated on a time rate, piece- 
work, or other basis. 

(g) Wages above Minimvmi. — There shall be an equitable adjust- 
ment of all wages above minimum, and to that end, within sixty 
(60) da3's from the approval of this Code, the Code Authority shall 
submit for the approval of the Administrator a proposal for adjust- 
ment in wages above the minimum. Upon approval by the Admin- 
istrator, after such hearing as he may prescribe, such proposal shall 
become binding as a part of this Code, provided, however, that in no 
event shall hourly rates of pay be reduced. 

(h) Female Employees. — Female emploj^ees performing substan- 
tially the same work as male employees shall receive the same rate 
of ]5ay as male employees. 

(i) Handicapped Persons. — A person whose earning capacity is 
limited because of age, physical or mental handicap, or other in- 
firmity, may be employed on light work at a wage below the mini- 
mum established by this Code, if the emplo5'er 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. 

AnncLE V — General Labor PR0\^SI0NS 

(a) Child Labor. — No person under eighteen (18) years of age 
shall be emplo3"ed in the industry except as office boys and office girls. 
No person under sixteen (16) years of age shall be employed in the 
industry in any capacity. In any State any employer shall be 
deemed to have complied with this provision as to age if he shall 
have on file a certificate or permit, duly signed by the Authority in 
such State empowered to issue employment or age certificates or per- 
mit showing that the emploj^ee is of the required age. 

(b) ProvisioTis from the Act. — 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 



207 

activities for the purpose of collective bargaining or otiier mutual 
aid or protection. 

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

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

(c) Reclassi'licatioii of Employees. — No employer shall reclassify 
employees or duties of occupations performed or engage in any other 
subterfuge for the purpose of defeating the purposes or provisions 
of the Act or of this Code. 

(d^ Standards for Safety and Health. — 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. 

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

(f) Posting. — All employers shall post and keep posted copies of 
this Code in conspicuous places accessible to all employees. Every 
member of the industry shall comply with all rules and regulations 
relative to the posting of provisions of Codes of Fair Competition 
which may from time to time be prescribed by the Administrator. 

Artecle VI — Code Authority ^ 

(1) There shall forthwith be constituted a Code Authority con- 
sisting of six voting members, each to serve for a term of one year, 
for the purpose of administering the provisions of this Code. 

(2) The Code Authority shall be selected as follows : 

(a) Three members representative of the membership of the 
American Toll Bridge Association to be selected by that association 
in such manner as may be equitable, subject to the approval of the 
Administrator. 

(b) Three members representative of the non-members of the 
American Toll Bridge Association to be selected from and elected 
by such non-members who have assented to the Code by a majority 
vote of said non-members of the Industry, but if not selected within 
thirty (30) days from the effective date of this Code, they may be 
appointed by the Administrator. 

(c) Not more than three (3) additional members, without vote, 
shall be appointed by the Administrator to serve without expense 
to the industry and for such period of time as the Administrator 
may determine. Such members shall be given reasonable notice of 
all meetings of the Code Authority. 



* See paragraph 3 of order approving this Code 



208 

(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 
hearing's as he may deem proper ; and thereafter if he shall find that 
the Code Authority is not truly representative or does not in other 
respects comply ■with the provisions of the Act, he may require an 
appropriate modification in the method of selection of the Code 
Authority. 

(4) The Code Authority shall have and exercise all powers and 
duties conferred upon it by this Code, and, generally, all such other 
powers and duties as shall be necessary or proper to enable it fully 
to administer this Code and effectuate its purposes, in cooperation 
with the Administrator, and to enable it, the said Code Authority, 
to carry on and perform its functions, as herein prescribed and 
contemplated. 

(5) The Code Authority may from time to time present to the 
Administrator recommendations based on conditions in this industry 
as they may develop which will tend to effectuate ,the operation of 
the provisions of this Code. 

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

(7) The Code Authority shall adopt a proper form of organiza- 
tion and procedure, by-laws, and rules and regulations, and may 
delegate any of its powers and duties to such agents, representatives 
and committees as it may constitute and appoint from time to time. 
Nothing herein contained shall be construed in any way to relieve 
the Code Authorit}^ of any or all of its obligations hereunder. 

(8) Members of the industry shall sustain their reasonable share 
of the expenses of the Code Authority and its activities. Such rea- 
sonable share of the expenses of administration shall be determined 
by the Code Authority, subject to review by the Administrator, on 
the basis of volume of business and/or such other factors as may 
be deemed equitable. 

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

(10) All members of the industry shall furnish to the Code 
Authority, through an impartial agency, such information and re- 
ports as are required for the administration of the Code. In addition 
to information required to be submitted to the Code Authority, 
members of the industry subject to this Code shall furnish such 
statistical information as the Administrator may deem necessarj^ for 
the purjooses recited in Section 3 (a) of the Act to such Federal and 
State agencies as he may designate; provided that nothing in this 
Code shall relieve any member of the industry of any existing obli- 
gations to furnish reports to any Government agency. No individ- 
ual report shall be disclosed to any other member of the industry or 



209 

any other party except to such other Governmental agencies as may 
be directed by the Administrator. 

(11) 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 tliat 
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 
unlass 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. 

(12) The Code Authority shall cooperate with the Administrator 
in regulating the use of any N. R. A. insignia solely by those mem- 
bers of the industry who have assented to and are complying with 
this Code. 

(13) Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Code Authority 
shall (1) impose no inequitable restrictions on membership, and (2) 
submit to the Administrator true copies of its articles of associa- 
tion, by-laws, regulations, and any amendments when made thereto, 
together with such other information as to membership, organiza- 
tion, and activities as the Administrator may deem necessary to 
effectuate the purposes of the Act. 

Article VII — Trade Practice Rules 

(a) It shall constitute an unfair trade practice and shall be a 
violation of this Code for any member of the industry to issue free 
passa-^e to any person except to bona fide officials, contractors, and 
emp' '^es of such members, to police and fire departments, and to 
such Ot. -^r persons as may be entitled to the same by law or the 
franchise under which such toll bridge is operated. 

(b) Fair trade and policy of the Act require that all persons and 
corporations engaged in the toll bridge industry as defined, in com- 
petition with others engaged therein, should be subject to the same, 
or to substantially the same, terms and conditions as to maximum 
hours of labor, minimum wages, conditions of employment, and 
general labor provisions. Where a member of the industry is sub- 
jected to competition by a plant or enterprise which is not required 
to conform to such requirements of this Code, such member of the 
industry may, on application to the Administrator, be equitably 
exempted by him from the operation of this Code within the groups 
or areas affected by such competition. 

(c) The Code Authority shall have the power to confer and act 
jointly with any other Code Authority when and as authorized by 
the Administrator; to coordinate the administration of this Code 
with such other Codes, if any, as may be related to or affect the 
industry or any part thereof; to confer and cooperate, upon their 
request, with other agencies, authorities and departments of Federal 
and State Governments to effectuate the policy of the Act and the 
provisions of this Code; to transmit pertinent information to that 
end ; and to delegate to any other administrative authority, upon the 
approval of the Administrator first obtained, such powers hereunder 



210 

as will promote cooperative action and fair trade and competitive 
practices as to matters of common interest in relation to the indus- 
try ; provided that any such delegation shall not be deemed to release 
or relieve the Code Authority from any of its duties and responsi- 
bilities under this Code. 

(d) In the event that any provision or provisions of this Code 
shall impose an unusual or undue hardship upon any member of 
the industry then such member through the Code Authority may 
petition the Administrator for relief and upon making proof of 
such hardship the Administrator may exempt such member from so 
much of the Code provisions and requirements as may be necessary 
to alleviate such hardship. 

Article VIII — ^Modification 

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

(b) This Code, except as to provisions required by the Act, may be 
modified and/or amended on the basis of experience or changes in 
circumstances, such modifications and/or amendments to be based 
upon application to the Administrator by the Code Authority or 
other representative groups within the industry but without limita- 
tion, and such notice and hearing as he shall specify, and to become 
effective as a part of this Code on approval of the President. 

Article IX — Monopolies, Etc. 

No provisions of this Code shall be so applied as to permit monop- 
olies or monopolistic practices contrary to law, or to eliminate, op- 
press, or discriminate against small enterprises. 

Article X — Application 

Nothing in this Code shall be so construed or applied as to con- 
flict with, or supersede the jurisdiction, or powers of any Federal, 
State, or municipal board, body, or official, exercising regulatory 
authority over any member of this industry. 

Article XI — Effectts'^e Date 

This Code shall become effective on the second Monday after its 
approval by the President, and terminate whenever Title I of the 
National Industrial Recovery Act ceases to be in effect but not later 
than June 15, 1935. 



Approved Code No. 431. 
Registry No. in3-2-15. 



o 



Approved Code No. 432 
CODE OF FAIR COMPETITION 

FOR THE 

SPECIALTY ACCOUNTING SUPPLY MANUFACTUR- 
ING INDUSTRY 

As Approved On May 17, 1934 



ORDER 



Appro'v^ng Code of Fair Competition' 

FOR THE 

Specialty Accounting Supply 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 Specialty Accounting Supply 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 Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of said 
Title of said Act ; and do hereby order that said Code of Fair Com- 
petition be and it is hereby approved; provided, however, that the 
provisions of Article VII, Section 1, 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 conditions of 
sale be and they are hereby stayed pending my further order either 
vrithin 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, 
Adrrdnistrator for Industrial Recovery. 

Approval recommended : 
K. M. Simpson, 

Division Administrator. 

Washington, D.C, 

Ma7j 17, 103J^. 

C0075° 544-lOG 3i (211) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The proposed Code of Fair Competition for the Specialty 
Accounting Supply Manufacturing Industry was submitted on 
August 5, 1933, by the Specialty Accounting Supph^ Manufacturers 
Association, an unincorporated membership society, representing 
over 70 per cent of the known Members of the Industry by number, 
and 90 per cent by volume. This Association represents the con- 
solidation of the Autographic Register Manufacturers Association, 
the Continuous Form Printers Association, and the Sales Book 
Manufacturers Association. The consolidation was a result of the 
recognition by the manufacturers involved, that many of the prob- 
lems both manufacturing and marketing were similar and that such 
an action would serve to expedite the formulation and facilitate the 
ultimate administration of the provisions of the Code of Fair Com- 
petition. At the time of the consolidation each of the individual 
associations represented approximately 90 per cent of the volume 
of the known members of the Industr5^ 

After the usual preliminary conferences a Public Hearing was 
conducted in Washington on Januai"y 5, 1934, to which all known 
Members of the Industry were invited. Every person who requested 
an appearance was properly heard in conjunction with statutory 
and regulatory requirements. The Code was revised during the 
recess of this hearing and was submitted in its present form for 
approval. 

The products of the Industry are divided in three general classes : 
Autograpl^ic Registers, Continuous Form Stationery of different 
varieties and Sales Books, all of which are used principally in stores 
and offices in connection with the rendering of sales records, credit 
memoranda, billing, etc. In the many years of the Industry's 
existence, much time and energy has been spent in the development 
of the efficiency of these devices and system. 

Statistics submitted by the Association and tabulated in the Divi- 
sion of Research and Planning indicate that sales of industry prod- 
ucts by the 22 reporting member concerns in 1929 aggregated in 
dollar volume $22,000,000. The figures for the same concerns show 
that sales had declined for the year 1933 to $15,000,000, or a drop of 
roughly 32 per cent. Employment coinciclently declined from 3,500 
factory and office workers from June 1929 to 2,810 in September 
1933, or a drop of, roughly, 20 per cent. 

This latter figure is not directly illustrative of the decrease in 
the number of employees because of the almost universal adoption 
of the President's Reemployment Agreement by the Members of the 
Industry. It is estimated that this action caused an increase of 
approximately 21 per cent in the number of wage earners over the 
low for the year 1933. The adoption of the labor provisions as con- 

(212) 



213 

tained in the Code will not, therefore, serve to mcaterially increase 
reemployment. It is estimated, however, that the increase in hourly 
rates paid to the workers affected will result in an average increase 
to nuile employees of 21.3 per cent and to female employees of 
IG per cent. 

Employment will further potentially be aided by the Fair Trade 
Practice provisions incorporated in this Code, which prevent certain 
unfair methods of competition now existing in the Industry and 
which, therefore, lay a foundation for the efficient execution of 
business. 

Article I, Purposes, states the purpose of the Code. 

Article II, Definitions, accurately defines specific terms applicable 
to the Specialty Accounting Supply Manufacturing Industry as used 
in this Code. 

Article III, Hours of Labor, establishes a maximum hour limita- 
tion of 40 hours per week, but permits certain classes of workers, 
such as production employees, mechanical workers and artisans, in 
a period in which a concentrated demand places an unusual or tem- 
porary burden upon the Industry, to work 48 hours per week in not 
more than 6 weeks in 6 months provid()d that they receive a com- 
pensation equal to 1^ times the normal wage rate paid to employees 
so employed. 

This Article further establishes a maxunum hourly limitation for 
C'ffice and salaried workers of 40 hours per week averaged over a 
period of 5 weeks. 

Watchmen are permitted to work 56 hours in one week provided 
that they receive at least 1 day's rest in every 7 day period. 

Employees engaged in executive, managerial or supervisory capac- 
ity, receiving not less than $35 per week, and those engaged in emer- 
gency repairs and maintenance are not subject to hourly limitations 
provided that the latter receive compensation equal to li^ times the 
normal rate for all hours worked in excess of 40 per week and 8 
per day. 

Article IV, Wages, establishes a minimum wage for male em- 
ploj^ees of 40 cents per hour and for female employees of 35 cents per 
hour for all except clerical and office employees who shall receive 
not less than $15 per week. This Article provides further that learn- 
ers and office boys and girls shall not be paid less than 80 per cent of 
respective minimum wages, at the same time limiting the number of 
such employees to 5 per cent of their respective divisions. Provision 
is made for the employment of handicapped persons and for the 
adjustment of wages above the minimum. 

Article V, General Labor Provisions, provides that no employer 
shall employ any person under 18 years of age except in clerical, 
office, sales, service, technical, and engineering departments; and in 
no event shall an}^ employer employ any person under 16 years 
of age. 

This Article also sets forth the mandatory provisions respecting 
the rights of employees to organize and bargain collectively, pro- 
vides for matters for preventing the reclassification of employees to 
defeat the purpose of the Code, establishes standards for safety and 
health and provides for the observance of State laws and the posting 
of complete copies of labor provisions of the Code. 



214 

Article VI, Administration, establishes a Code Authority of 7 
members to be selected by a fair method of election and provides 
for not more than 3 additional members without vote to be appointed 
by the Administrator for such terms as he may specify. This Article 
also sets forth the powers and duties of the Code Authority. 

Article VII, Marketing and Trade Practice Eules, sets forth the 
trade practices for the Industry, including an open price association. 

Article VIII, Export Trade, provides that no provision relating 
to terms of selling, shipping, or marketing shall apply to export 
trade or sales of shipments for export trade or transactions in the 
foreign commerce of the United States. 

Article IX, Modification, makes all the provisions of the Code 
expressly subject to the rignt of the President to cancel or modify 
any order, approval, license, rule or regulation issued under Sub- 
section (b) of Section 10 of the Act. 

Article X, Monopolies, provides that no provision of the Code shall 
be so applied as to permit monopolies or monopolistic practices or to 
eliminate, oppress or discriminate against small enterprises. 

Article XI, Price Increases, provides that the increase in selling 
prices shall be limited, in so far as possible, to actual increases in 
seller's costs. 

Article XII, Effective Date, states that the Code shall become 
effective 10 days after the approval by the President. 

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

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

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion subsection (a) of section 3, subsection (a) of section 7, and sub- 
section (b) of section 10 thereof, and that the applicant association 
is an industrial association truly representative of the aforesaid In- 
dustry, and that said association imposes no inequitable restrictions 
on admission to membership therein. 

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



215 

(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. Joiixson, 

Administrator. 
Mat 17, 1934. 



CODE OF FAIR COMPETITION FOR THE SPECIALTY 
ACCOUNTING SUPPLY J^IANUFACTURING INDUSTRY 

Aeticle 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 Specialty Accounting Supply Manufacturing Industry, and 
its provisions shall be the standards of fair competition for such 
Industry and binding upon every member thereof. 

Article II — Definitions 

Wherever used in this Code or in any supplement appertaining 
thereto, the terms enumerated in this Article shall have the meanings 
herein defined. 

Section 1. The term "Act " means Title I of the National Indus- 
trial Recovery Act. 

Section 2. The term " President " means the President of the 
United States of America. 

Section 3. The term "Administrator " means the Administrator 
for Industrial Recovery. 

Section 4. The term " Specialty Accounting Supply Manufactur- 
ing Industry " or " Industry " as used herein includes the manufac- 
ture and original sale, directly or indirectly, of industry' products by 
a Member of the Industry or his agent which includes without limi- 
tation any person or corporation occupying a subsidiary or con- 
trolling relationship, or one of common, mutual or joint ownership 
or control to a Member of the Industry. 

(a) The term "Industry Products" as used herein means the 
following products and devices: 

1. Autographic and/or credit registers and/or supplies therefor 
which, for the purpose of this Code, are defined to mean such ma- 
chines and/or devices and/or supplies therefor as are used in making 
handwritten records of various transactions. 

2. Continuous Form Stationery which for the purpose of this 
Code is defined to mean multiple sets of " business forms " with or 
without carbons, attached and/or folded, for use in billing machines, 
typewriters, and other office equipment. 

" 3. Sales Books, which for the purpose of this Code as used herein, 
are defined to mean bound books of sales checks or tickets for making 
original handwritten records of sales transactions. 

Section 5. The term " Member of the Industry " includes, but 
without limitation, any individual, partnership, association, corpo- 
ration, or other form of enterprise engaged in the Industry, either 
as an employer or on his or its own behalf. 

Section 6. The term " Employee " means and includes anyone 
engaged in the Industry in any capacity receiving compensation 

(216) 



217 

for his services, irrespective of the nature or method of {)ayiiK'nt of 
such compensation, except a Member of the Industry. 

Section 7. The term '" Kmphvyer " means and inchides anyone by 
whom any sucli emph)yee is employed or compensated. 

Sectiox 8. The term " Learner " as used lierein means an em- 
])loyee without previous exjierience enaaocd to become comj)etent on 
one or more operations, but who sludl not be so ehissified after ninety 
(DO) days employment. 

Section 9. The term "Association " as used lierein sliall mean the 
Specialty Accountinj; Supj^ly Manufacturing Association, an unin- 
corporated membership society with its principal office in the City of 
Chicao;o, State of Illinois. 

Section 10. The term " Secretary " as used herein means the 
secretary of the Association. 

Section 11. The term " Board of Directors" as used herein means 
the Board of Directors of the Association elected in accordance with 
the t-ei'ins of the By-Laws of the above-mentioned association. 

Article III — Houks of Labor 

Section 1. Maximum Hours. — On and after the effective date of 
this Code, no employee shall be permitted to work in excess of forty 
(40) hours in any one week or eight (8) hours in any twenty-four 
(24) hour period exce])t as herein otherwise provided. A normal 
day shall not exceed eight (8) hours. 

Section 2. Hour's for Clerical a/id Office Employees. — No person 
emploj'ed in clerical or office work shall be permitted to work in 
excess of forty (40) hours, averaged over a five (5) week period. A 
normal day shall not exceed eight (8) hours. 

Section 3. Exceptions as to Hours. — The limitation as to hours of 
labor as specified in Sections 1, 2 and 4 of this Article III shall not 
apply to the following: 

(a) To employees engaged in emergency maintenance or emer- 
gency repair work, involving breakdown or protection of life or 
property; provided that in such special cases not less than one and 
one-half {lYz) times the normal wage rate for any employees so 
employed shall be paid for all hours worked in excess of forty (40) 
hours in any one week or eight (8) hours in any one day. 

(b) To persons engaged in a managerial, executive or supervisory 
capacity, who receive not less than thirty-five ($35.00) dollars per 
week, and to outside salesmen. 

(c) To watchmen who may be permitted to w^ork fifty-six (56) 
hours in any one-week period, provided that such employees shall 
have at least one (1) day of rest in each seven (7) day j^eriod. 

(d) To employees engaged in the preparation, care, and main- 
tenance of machinery and production facilities, stock and shipping 
clerks, and truckmen engaged in outside delivery and pick-up service 
who may be permitted a tolerance of ten (10%) per cent additional 
hours over the maximum hours in any one week provided that not 
less than one and one-half (IMi) times the normal rate shall be 
paid for all hours worked in excess of forty (40) hours per week, 
or eight (8) hours per day. 

00075° 544-106 34 2 



218 

(o) To production employees, mechanical workers, or artisans 
who, during any period in which a concentrated demand npon any 
division of the Industry shall place an unusual or temporary burden 
for production Vv'ork upon its facilities or to meet seasonal or peak 
requirements or production emergencies may be permitted to work 
not more than forty-eight (48) hours per week, in not more than 
six (6) weeks in six (6) months, provided, that not less than 
time and one-half the normal rate be paid to any employee so 
employed for hours v/orked in excess of forty (40) hours per week, 
or eight (8) hours per day. 

Section 4. ^taiulaxd Week. — No employee shall be permitted to 
work more than six (6) days in any seven-day period. 

Section 5. Employment 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 employers in this Industry or other industries exceeds the maxi- 
mum permitted herein. 

Article IV — Wages 

Section 1. M'niimuni Wages. — On and after the effective date of 
this Code, except as herein otherwise specified, no male emploj^ee 
shall be paid in any pay period less than forty (40^) cents per hour, 
and no female employee less than thirty-five (350) c«nts per hour. 
The minimum rates herein provided shall be construed as hiring 
rates applying to unskilled labor. Other classes of labor shall be 
compensated at rates above such minimum. Wages in effect prior 
to the date of approval of this Code, above the minimum specified, 
shall in no case be reduced. 

(a) Learners shall be paid not less than eighty (80%) per cent 
of the respective minimums set forth in this Section, provided that 
the number of learners so paid shall constitute not more than five 
(5%) per cent of the total number of employees of any one em- 
ployer, but in any case each employer shall be entitled to at least 
two such employees. 

Section 2. Clerical and Office Employees. — No accounting, cleri- 
cal, sales, or service employee working on a weekly basis in any 
office shall be paid less than at the rate of fifteen ($15.00) dollars 
per week; provided, however, that office boys and girls and messen- 
gers shall be paid at a rate not less than eighty (80%) per cent of 
such minimum ; and provided further that the number of such boys 
and girls and messengers so paid shall constitute not more than five 
(5%) per cent of the total number of such employees of any office of 
any one employer, but in any case each employer shall be entitled to 
at least one such employee. 

Section 3. Pierccwork C ompensation. — Minimum Wages. This 
Article establishes a minimum rate of pay for any paj^ period which 
shall apply, irrespective of whether an employee is actually compen- 
sated on a time-ratc\ piecework, or other basis. 

Section 4. Female Em,ployees. — Female employees performing 
substantially the same work as male employees shall receive the same 
rate of pa}^ as male employees. "\'\nien female employees displace 
male employees they shall be paid the same wage rate as the male 
employees they have displaced. The Code Authority shall, within 
ninety (90) days after the effective date of this Code, file with the 



219 

Administrator a list of all occupations in the Industry' in which 
both men and women are employed. 

Section 5. Equitable adjustments in all pay schedules shall be 
made within thirty (30) daj^s after the effective date of this Code 
by any employer who lias not heretofore made such adjustments 
under the National Industrial llecovery Act. In no event, how- 
ever, shall hourly rates be reduced. Within sixty (60) days after 
the effective date of this Code, each Member of the Industry shall 
make to the Code Authority a report of such adjustment whether 
made prior or subsequent to the date of approval of this Code. 

Section 6. Handicapyed Persons. — A person whose earning capac- 
ity is limited because of age or physical or mental handicap), may be 
employed on light work at a wage below the minimum established 
by this Code if the employer obtains from the State Authority 
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 monthly 
with the Code Authority a list of such persons employed by him, 
showing the wages paid to, and the maximum hours of work of 
such employees. 

Section 7. Payment of TFa^es.— Each employer shall make pay- 
ment of all wages in lawful currency or by negotiable check there- 
for, pa3'able on demand. These wages shall be exempt from any 
payments other than those voluntarily ordered paid by the wage 
earner, or required by law. Wages shall be paid at no greater in- 
terval than one-half month, and salaries at no greater interval than 
one niontJi. No employer shall withhold wages, except as otherwise 
provided by law. 

Article V — General Labor Provisions 

Section 1. Child Labor. — On and after the effective date of this 
Code, no person under 18 j^ears of age shall be employed in the 
Industry except in clerical, office, sales, service, technical and engi- 
neering departments, and no person under 16 years of age shall be 
employed in any capacity. In any state an employer shall be deemed 
to have complied with this provision as to age 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 show- 
ing that the employee is of the required age. 

Section 2. Provisions of the Act. — (a) Employees shall have the 
right to organize and bargain collectively through representatives of 
their own choosing, and shall be free from the interference, restraint, 
or coercion of emplojers 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 ^ny company union or to refrain 
from joining, organizing, or assisting a labor organization of his own 
choosing, and 

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



220 

Section 3. Reel asslf cation of Employees. — No employer shall re- 
classify employees or duties of occupations performed, or engage in 
any other subterfuge for the purpose of defeating the purposes or 
provisions of the Act or of this Code. 

Section 4. Sfnndards 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 for this Industry shall be submitted 
by the Code Authority to the Administrator within six months after 
the approval of this Code. 

Section 5. State Laics. — No provision in this Code shall super- 
sede any State or Federal Law which imposes on employers more 
stringent requirements as to age of employees, wages, hours of 
work, or as to safety, health, sanitary or general working condi- 
tions, or insurance, or fire protection, than are imposed by this 
Code. 

Section 6. Posting. — All employers shall keep posted complete 
copies of the Labor Provisions (Articles III, IV, and V) of this 
Code, and all Amendments thereto, in conspicuous places accessible 
to employees. 

Article VI — Organization, Powers and Duties of the Code 

Authority 

Section 1. Organization and Constitution. — A Code Authority to 
administer this Code is hereby constituted which shall consist of 
seven voting members. Six of such members shall be selected from 
the Board of Directors; the other voting member shall be elected 
by the members of the Industry not members of the Association. 
The election of all members to the Code Authority shall be by a 
fair and equitable method of election to be approved by the Admin- 
strator. In the event that the selection of the non-member of the 
Association is not made within thirty (30) days of the effective 
date of this Code, such member may be selected by the Adminis- 
trator. 

Section 2. In addition to the above membership there may be not 
more than three (3) additional members wthout vote and without 
expense to the Industry, to be appointed by the Administrator to 
serve for such terms as he may specify. 

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, rules and regulations, and any amendments when 
made thereto, together with such other information as to member- 
ship, organization, and activities as the Administrator may deem 
necessary to efTeci<nuite 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 lie sluiU find 
that the Code Authority is not truly representative or does not in 
other respects comply with the provisions of the Act, may require 



221 

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

Section 5. (1) It being foimd necessary to support the Adminis- 
tration of this Code, in order to effectuate the policy of the Act 
and to maintain the standards of fair competition established here- 
under, the Code Authority is authorized : 

(a) To incur sucli reasonable obligations as are necessary and 
proper for the foregoing purposes and to meet such obligations out 
of funds which shall be held in trust for the purposes oi the Code 
and raised as hereinafter provided : 

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary : 

1. An itemized budget of its estimated expenses for the foregoing 
purposes, and 

2. An equitable basis upon which the funds necessary to support 
such budget shall be contributed by all members of the Industry 
entitled to the benefits accruing from the maintenance of such stand- 
ards, and the administration thereof: 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and collect equitable con- 
tributions as above set forth, and to that end, if necessary, to insti- 
tute legal proceedings therefor in its own name. 

(d) After such approval by the Administrator non-payment by 
a IMember of the Industry, of his or its equitable share of the costs 
of code administration, shall constitute a code violation. 

(2) Each Member of the Industry shall be liable for his or its 
equitable contribution to the expenses of the maintenance of the 
Code Authority as hereinabove pro^dded. Only Members of the 
Industry complying with the Code and making such contribution 
shall be entitled to participate in the selection of the members of the 
Code Authority or to receive the benefits of its voluntary activities 
or to make use of any N.R.A. insignia. 

Section 6. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for smj purpose. Nor shall 
any members of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent, or employee 
of the Code Authority. Nor shall any member of the Code Author- 
ity, exercising reasonable diligence in the conduct of his duties here- 
under, be liable to anyone for any action or omission to act under 
this Code, except for his own willful 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 
Avhich 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 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 



222 

thirty 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 of the provisions of this Code at its own instance or upon 
the complaint of any person affected and to report the result thereof 
to the Administrator. To receive complaints of violations of this 
Code or disputes arising thereunder, make investigations thereof, 
provide hearings thereon, adjust such complaints and make such 
decisions as are necessary thereon and to bring to the attention of 
the Administrator for prosecution unadjusted complaints of viola- 
tions. 

(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. 

(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 pursuant 
to this paragraph. 

(d) To obtain from Members of the Industry through a confiden- 
tial agency (for the purposes of this paragi-aph the Secretary) such 
statistical information and reports as are required for the adminis- 
tration of the Code and to provide for submission by Members of 
the Industry of such statistical information and reports as the Ad- 
ministrator may deem necessary for the purposes recited in Section 
3 (a) of the Act, which information and reports shall be submitted 
by Members of the Industry to such Federal and/or State agencies 
as the Administrator may designate ; provided, that nothing in this 
Code shall relieve any Member of the Industry of any existing obli- 
gations to furnish reports to any Government agency. No indi- 
vidual statistical reports shall be disclosed to any other Member of 
the Industry or any other part}^ except to such Governmental agen- 
cies 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, provided that nothing herein shall relieve the Code Author- 
ity of its duties or responsioilities under this Code and that such 
trade associations and agencies shall at all times be subject to and 
comply with the provisions hereof. 

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

(g) To cooperate with the Administrator in regulating the use of 
any NRA insignia solely by those Members of the Industry who are 
complying with this Code and are making equitable contributions to 
the expenses of the Code Authority. 

(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 concerning control of 
production through voluntary agreement and to recommend to the 
Administrator measures for industrial planning, including stabiliza- 
tion of employment. 



223 

(i) To formulate an accounting system and methods of cost find- 
ino; and/or estimating capable of use by all Members of the Industry. 
After such system and methods have been formulated and approved 
by the Administrator full details concerning them shall be made 
available to all members. Thereafter all members shall determine 
and/or estimate costs in accordance with the principles of such 
methods. 

(j) To prescribe from time to time the form and arrangement 
of a 3chedule to be used by Members of Industry for filing prices 
and terms or conditions or sale for industry products, and to de- 
termine the classification of industry products to be included therein ; 
however, any Member of the Industry shall not be prevented from 
including in his price lists any industry products manufactured and 
sold by him. IS either the form and arrangement prescribed, nor 
the method of classification of industry products shall be used 
directly or indirectly to fix prices, indicate higher price levels, or 
forecast price trends. 

Abticle VII — Marketing and Trade Practice Rules 

Section 1. Price Schedtdes. — (a) Each Member of the Industry 
within thirty (30) days after the effective date of this Code shall 
file with the Code Authority as many copies as the Code Authority 
may require of schedules containing price lists and terms or condi- 
tion3 of sale at which such member is offering those industry prod- 
ucts for sale, for which the Code Authority has required a schedule 
of prices and terms or conditions of sale to be submitted pursuant 
to paragraph (j), Section 7 of Article VI. 

(b) The original schedules filed in accordance with the above para- 
graph (a) shall become effective on the date of filing thereof with 
the Code Authority. 

(c) The Code Authority forthwith on such original filing shall 
notify all known Members of the Industry of the contents thereof. 

(d) Any Member of the Industry desiring to change any price 
or prices and/or terms or conditions of sale shall notify the Code 
Authority of such intention by filing a revised schedule, which shall 
become effective ten (10) days thereafter. The revised schedule so 
filed with the Code Authority shall be immediately distributed 
among the loiown Members of the Industry who thereupon may file, 
if they so desire, revisions of their schedules to meet such revisions in 
the revised schedule first filed, and which shall become effective upon 
the date the revised schedule first filed becomes effective. In the 
event that any Member of Industry shall not receive sufficient notice 
of the filinfT by any other Member of Industry of revisions in such 
other Member of Industry's price or prices and/or terms or condi- 
tions of sale as will enable him to meet such revisions of such other 
member on the effective date thereof, then if such member shall file 
with the Code Authority such revisions of his price or prices and/or 
terms or conditions of sale as may be required to meet the revisions 
filed with such other member, within 48 hours after the receipt of 
notice thereof, the revision so filed by such member may become 
effective on the same date as the revisions of such other member, 
or if they be already effective may become effective immediately. 



224 

(e) Published or Uled prices shall include terms of payment, 
length of bookings or contracts and f.o.b. point, or points, of origin 
and such other provisions as may be necessary to fully inform the 
trade of all conditions of sale. 

(f) Original schedules and all revisions thereof shall be made 
available to the public.^ 

Section 2. Trade Practice Rules. — The following trade practices 
are declared to constitute methods of unfair competition between 
Members of the Industry, and no Member of the Industry shall use 
or engage in any of them, directly or indirectly, through any officer, 
agent or employee. Engaging in any one of such trade practices or 
of any other practices which hereafter may be declared to be unfair 
methods of competition by the Code Authority, approved by the 
Administrator after such hearing or hearings as he may prescribe, 
shall be deemed a violation of this Code. 

(a) Failing to file schedules or changes therein, as required by 
Section 1 of this Article. 

(b) Selling or j^articipating in any sale of any industry product 
by a Member of the Industry at any price other than that set forth 
in his then currently effective schedule or upon any terms or con- 
ditions contrary to those contained in such schedule. 

(c) Permitting, directly or indirectl}^, the consummation of any 
sale made with the intent, or having the effect, of violating the pro- 
visions of the Act or the Trade Practices of this Code. 

(d) Pricing and/or selling industry products by any Member of 
the Industry at a price below his or its cost as determined pursuant 
to paragraph (i), Section 7 of Article VI; provided, however, that 
a member may meet the price of a competitor whose price does not 
violate the Code; and provided further that a member may make 
such sales as necessary to dispose of distress merchandise and/or 
products not up to specification. Full information concerning such 
sales shall be reported to the Code Authority and to all ISIembers of 
the Industry. 

(e) Paying or allowing rebates, refunds, commissions, credits, or 
unearned discounts, whether in the form of money or otherwise, or 
the extension to certain purchasers of special services or privileges 
not extended to all purchaser of the same class on like terms and 
conditions. 

(f ) Prepaying freight charges with the intent or with the effect of 
granting discriminatory credit allowance. 

(g) Predating or postdating any invoice or sales contract except 
to conform to a bona fide agreement entered into on the predate. 

(h) Marking falsely any product of the Industry or intentionally 
misi-epresenting analysis of content, size or weight; or the making of, 
causing, or permitting to be made, or publishing of any false, mis- 
leading, or deceptive statement by way of advertisement, invoice, or 
otherwise concerning the size, quality, quantity, character, nature, 
preparation, or origin of any industry product. 

(i) Deviating from the published and previously established speci- 
fication, for the purpose of influencing a customer or prospective 
customer. 



* See paragraph 2 of order approving this Coda. 



225 

(j) Defaming competitors by falsely imputing to them dishonor- 
able conduct, inability to perform contracts, questionable credit 
standing, or by other false representation, or by false disparagement 
of the ^rade or quality of their goods. 

(k) Using in written or oral form, unless authorized, trade-marks, 
trade names, or slogans used by a competitor. 

(1) Inducing or attempting to induce the breach of an existing 
oral or written contract between a competitor and his customer or 
source of supply, or interfering with or obstructing the performance 
of such contractual duties or services. 

(m) Aiding or abetting any person, firm, association or corpora- 
tion, directly or indirectly, in any practice which would tend to 
defeat the provisions of the Act and of this Code. 

(n) Kepudiating contracts entered into in good faith when the 
purpose of such repudiation is to create for such member an unfair 
price advantage. 

(o) Giving, permitting to be given, or directly offering to give 
an3i:hing of value for the purpose of influencing or rewarding the 
action of any employee, agent, or representative of another in rela- 
tion to the business of the employer of such employee, the principal 
of such agent or the represented party, without the laiowledge of 
such employer, principal, or party. This commercial bribery pro- 
vision shall not be construed to prohibit free and general distribution 
of articles commonly used for advertising except so far as such 
articles are actually used for commercial bribery as hereinabove 
defined. 

AeticL;E VIII — Export Trade 

No provision of this Code relating to prices, terms of selling, 
shipping, or marketing shall apply to export trade or sales or ship- 
ment for export trade, or transactions in the foreign commerce of 
the United States. 

Article IX — Modification 

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

Section 2. Such of the provisions of this Code as are not required 
to be included therein by the Act may with the approval of the 
Administrator be amended as provided in Section 3 hereof in such 
manner as may be indicated by the needs of the public, by changes 
in circumstances, or by experience ; all of the provisions of this Code, 
unless so modified or eliminated, shall remain in effect until June 
16, 1935. 

Section 3. An Amendment may be proposed by any interested 
party, either to the Code Authority or directly by or to the Admin- 
istrator. All proposed Amendments shall be referred to the Code 
Authority, who shall give Members of the Industry an opportunity 



226 

to be heard thereon; and thereafter the Code Authority shall make 
such recommendations thereon as is deemed proper, provided, how- 
ever, that when approved by the Administrator, as necessary to 
effectuate the policies of the Act, after such notice and hearing as 
he may prescribe, any proposed Amendment shall thereupon become 
effective as a part of the Code. 

Section 4. The Code Authority may make recommendations for 
modifications of this Code to the Administrator which shall become 
effective as a part of this Code upon approval by the Adm.inistrator 
aft€r such notice and hearing as he may prescribe. 

Article X — ]Moxopolies 

No provision of this Code shall be so applied as to promote 
monopolies 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 clifRcult 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 be in effect beginning ten (10) days after its 
approval by the President. 



Approved Code No. 432. 
Registry No. 501-1-04. 



O 



Approved Code No. 433 

CODE OF FAIR COMPETITION 

FOR THE 

COTTON PICKERY INDUSTRY 

As Approved on May 17, 1934 



ORDER 



Approving Code of Fair Competition for tiie Cotton Pickery 

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 Cotton Pickery 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 Recoveiy, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise, do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act, and do hereby order that said Code 
of Fair Competition be and it is hereby approved; provided, how- 
ever, that the provisions of Article VIII thereof shall not become 
effective and they are hereby stayed for a period of ten (10) days 
in order to afford consideration of the objections of any interested 
parties, and at the exj^iration of which period the said provisions 
of Article VIII shall become effective unless I shall by my further 
Order otherwise determine or extend such stay ; provided, further, 
that the Code Authority shall appoint a committee which shall make 
a study of wages and hours in the industry looking toward measures 
which will enable an improvement in standards, and shall report 
such study, with recommendations, to the Administrator prior to 
December 31, 1934. 

Hugh S. Johnson, 
Adininistratoi'' for Industrial Recovery. 

Approval recommended : 
Armin W. Riley, 

Division Adinvnistrator. 

Washington, D.C, May 17, 193Jf. 

60081° 544-105— — 34 (227) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Cotton Pickery Industry, and on the public hearing held in Wash- 
ington, D. C, on March 10, 1934, in accordance with the provisions 
of the National Industrial Recovery Act. 

HOURS AND WAGES 

All labor, clerical and otherwise, is placed on a basis of forty (40) 
hours per week and eight (8) hours per day with exemption for 
employees on emergency maintenance and emergency repair work 
and on emergencies involving the prevention of spoilage and/or 
deterioration of goods, and with a penalty of time and one-third for 
all time worked in excess of forty (40) hours. 

Firemen and engineers are placed on a forty-eight (48) hour basis 
with overtime for the time beyond forty (40) hours. Truck drivers 
are restricted to forty-eight (48) hours and watchmen to fifty-six 
(56) hours. Those supervisory employees who receive thirty-five 
($35.00) dollars per week or more are exempted. 

OiRce employees are placed on a sixteen ($16.00) dollar per week 
basis with a differential of two ($2.00) dollars for office boys. 
Watchmen are to be paid not less than fifteen ($15.00) dollars per 
week. The minimum wages set for factory employees represent in- 
creases of thirt3''-six (36%) percent for male employees and seventy- 
four (74% ) percent for female employees. 

The usual safeguarding provisions are included in the Code. 

ECONOMIC EFFECTS OF THE CODE 

The Cotton Pickery Industry is scattered throughout the cotton 
belt and its units are located at points where cotton is concentrated in 
the course of its movement from producers to cotton textile mills and 
into export. It is essentially a salvage business, engaging regularly 
in the conditioning of irregular cotton not acceptable to the Raw 
Cotton Trade, and, in emergencies, in reconditioning cotton dam- 
aged by fire, water, or otherwise. These emergencies necessarily 
create sharp fluctuations in the number of persons employed in the 
Industry, 

The Industry receives damaged and irregular lots of cotton and 
sorts them into regular and irregular cotton. The regular cotton gets 
back into the channels of trade for such cotton ; the irregular cotton 
goes into low grade textiles, twine, mops, bedding, upholstery, paper 
stock and explosives. 

In vieAv of the reduction in the cotton crop during the year 1933, 
and the further reduction which the Bankhead Bill is expected to 
effect, the volume of business which the Industr}'^ can expect is likely 
to be reduced. Therefore, the opportunity for increasing employ- 

(22S) 



229 

ment is restricted to spreading employment through curtailing the 
hours of emplo3'ment, offsetting this curtailment by an increase in 
hourly wages. 

There have been "written into the Code requirements as to the 
marldng of bales of irregular cotton of the various types each for the 
type which the bale contains. This is in conformity to similar pro- 
visions -svliich are to be written into the other related cotton codes, 
and is designed for the more complete and accurate description of all 
cotton which will facilitate its movement through the several trade 
channels of the domestic trade. 

The Code Authority will be selected by a method which is deemed 
to assure its being truly representative; its powers and duties are 
restricted to those generally vested in Code Authorities in accordance 
with the policy of this Administration. 

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

''I find that: 

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

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

"(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant asso- 
ciation is an industrial (or trade) association truly representative of 
the aforesaid Industry; and that said association imposes no in- 
equitable 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 st^ps of the economic process have 
not been deprived of the right to be heard prior to approval of said 
Code. 

For the above reasons this Code has been approved. 
Respectfully, 

Hugh S. Johxson, 

A dnii nis tra tor. 

Mat 17, 1934. 



CODE OF FAIR COMPETITION FOE THE COTTON 
PICKERY 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 
Cotton Pickery Industry, and its provisions shall be the standards 
of fair competition for such industry and shall be binding upon 
every member thereof. 

Aeticle II — Definitions 

Section 1. As used in this Code : 

(a) The term " President " means the President of the United 
States of America. 

(b) The term "Administrator" means the Administrator for 
Industrial Recovery. 

(c) The term "Act" means Title I of the National Industrial 
Recovery Act. 

(d) The terms "Cotton Pickery Industiy " and "Industry" 
include the business of reconditioning, reworking and/or reginning 
cotton damaged by flood wet, fire, water and/or in any other man- 
ner, and irregular cotton, whether baled or loose, whether such dam- 
aged and/or irregular cotton belongs to the member of the industry 
reconditioning, reworking and/or reginning such cotton or to 
others. 

(e) The terms " member of the industry " and "member " include 
but without limitation, any individual, partnership, association, cor- 
poration or other form of enterprise engaged in the industry as above 
defined . either as an employer or on his or its own behalf. 

(f) The term "irregular cotton" includes conditioned, repacked 
and reginned cotton, pickings, and any other cotton not handled in 
the usual course of the cotton trade. 

(g) The term " conditioned " means cotton which has been rebaled, 
without the addition of any other cotton, and which came from a 
bale which had been opened for the purpose of drying the cotton, 
which cotton has been dried. This term shall not apply to a bale 
containing the regular cotton remaining after the damaged cotton 
has been removed from a damaged bale. 

(h) The term "repacked" means cotton that is composed of fac- 
tors', brokers' or other samples, or of loose or miscellaneous lots col- 
lected and rebaled, or cotton in a bale which is composed of two or 
more smaller bales or parts of bales. 

(i) The term "reginned" means cotton that has passed through 
the ginning process more than once, and/or cotton that, after having 
been ginned has been subjected to a cleaning process and then baled. 

(j) The term " pickings " means any cotton removed, in the process 
of conditioning, from any bale which has been damaged in whole or 

(230) 



231 

in part by fire and/or water, or in any other manner, whether 
reginnod or not. 

(k) The term "employee" includes any and all persons engaged 
in the industry, hoAvever compensated, except a member of the 
industry. 

(1) The term " employer " includes any person by whom any such 
employee is compensated or employed. 

{mj The term "watchman" includes any employee whose prin- 
cipal function is watching and guarding the premises and property 
of any establishment of a member of the industry. 

(n) The term " Code Authority " means that body set up pursuant 
to the i:)rovisions of Section 1 of Article VI. 

Article III — Hours 

Section 1. No employee except as herein otherwise expressly pro- 
vided, shall be permitted to work in excess of forty (40) hours in 
any one week, or eight (8) hours in any one day, with the following 
exceptions : 

(a) Executive, supervisory, technical and administrative employ- 
ees, provided that they regularh' receive thirty-five dollars ($35.00) 
per week or more. 

(b) Watchmen, provided, however, that they shall not be permitted 
to work in excess of fifty-six (56) hours per week. 

(c) Truck drivers, provided, however, that they shall not be per- 
mitted to work in excess of forty-eight (48) hours per week. 

(d) Firemen and engineers, provided, however, that they shall not 
be permitted to work in excess of forty-eight (48) hours per week; 
pro\4ded further, that one and one-third times the regular hourly 
rate shall be paid for all time worked in excess of forty (40) hours 
per week. 

Section 2. The maximum hours fixed in the foregoing Section 1 
shall not apply to employees on emergency maintenance and emer- 
gency repair work and on emergencies involving the prevention of 
spoilage and/or deterioration of goods; provided, however, that any 
employee so working beyond eight (8) hours per day or forty (40) 
hours per week shall be compensated for such overtime by at least 
one and one-third times his regular hourly rate, and reports shall be 
made monthly to the Code Authority stating the number of hours so 
worked in excess of the maximum as provided herein. 

Section 3. All time worked, except by watchmen, on Sundays and 
National legal holidays shall be compensated the rate of time and 
one-third. 

Section 4. No employee, except a watchman, shall be permitted to 
work in excess of six (6) days in any seven (7) day period. 

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

Article IV — Wages 

Section 1. No clerical or other office employee except as herein 
otherwise expressly provided, shall be paid at the rate of less than 



232 

sixteen dollars ($16.00) per week except office boys, who may be paid 
two dollars ($2.00) less per week; provided, however, that the num- 
ber of office boys so compensated shall not exceed five per cent (5%) 
of the total number of clerical or other office employees for any one 
member; provided further, that each member of the industry shall 
be entitled to at least one such employee. 

Section 2. No watchman shall be paid at the rate of less than 
fifteen dollars ($15.00) per week of fifty-six (56) hours. 

Sectiox 3. No employee except as herein otherwise expressly pro- 
vided, shall be paid at the rate of less than (a) twenty-five cents 
(25^) per hour for male emploj^ees and (b) eighteen cents (18^) per 
hour for female employees. 

Section 4. This Article establishes minimum rates of pay which 
shall apply, irrespective of whether an emplo3'ee is actually compen- 
sated on a time-rate, piece-work or other basis. 

Section 5. (a) Employers shall not reduce the hourly wage rates 
for occupations other than common labor which are now in excess 
of the minimum hourly wage rates herein provided for and shall 
increase the hourlv wage rates of factory employees by equitable 
readjustments of all pay schedules, which will at least maintain the 
differentials in full time weekh^ earnings existing on July 15, 1929. 

(b) Employers shall not reduce the weekly wage rates of clerical 
and other office emploj^ees below the weekly earnings existing on 
July 15, 1933, even though the hours of employment shall have been 
or may hereafter be reduced to comply with this Code. 

(c) Employers shall not reduce, or use any device or subterfuge 
for reducing, wage rates existing on July 15, 1933, of any emplovee. 
In the event that wage rates have been reduced subsequent to July 
15, 1933, wage rates existing on July 15, 1933 shall be restored. 

Section 6. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees. 

Section 7. A person whose earning capacity is limited because 
of age, phj^sical or mental handicap, or other infirmity, may be 
emploved on light work at a wage below the minimum established 
b}'^ a Code, if the employer obtains from the state authority, desig- 
nated by the United States Department of Labor, a certificate 
authorizing such person's employment at such wages and for such 
hours as shall be stated in the certificate. Such authority shall be 
guided by the instructions of the United States Department of Labor 
in issuing certificates to such persons. Each employer shall file 
monthly with the Code Authority a list of all such persons employed 
by him, showing the wages paid to, and the maximum hours of w^ork 
for such emploA'Ce. 

Article V — General Labor Provisions 

Section 1. No person under sixteen (16) years of age shall be 
employed in the industry, nor shall any person under eigliteen (18) 
years of age be employed at operations or occupations which are 
hazardous in nature or detrimental to health. The Code Authority 
shall submit to the Administrator within sixty (60) days of the 
effective date of this Code a list of such operations and occupations. 



233 

Section 2. Employees shall have the ri<^ht 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. 

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

Section T. 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 8. Each member of the industry shall comply with such 
rules and regulations, with regard to the posting of notices, bulletins 
and extracts of Code provisions, as may be from time to time issued 
by the Administrator. 

Section 9. Wages shall be exempt from fines, charges, and/or 
deductions except with the written consent of the employee or when 
required by law. 

Article VI 

ORGANIZATION, POWERS AND DUTIES OF THE CODE AUTHORITY^ 

Section 1. There shall forthwith be established a Code Authority, 
consisting of five (5) persons who shall be elected by members or 
the industry. 

(a) Four (4) membere of the Code Authority may be members of 
the National Cotton Pickeries Association or employees of such 
members; at least one member of the Code Authority shall be a 
member of the industry, or an employee of such member, who is not 
a member of this Association. In the event that such non-member 
is not elected, he may be appointed by the Administrator until so 
elected ; if such non-member can not be found, then, at the discretion 
of the Administrator, the Association, with the approval of the 
Administrator, may elect one additional member in which event 

^ See paragraph 2 of order approving this Code. 



234 

each member of the industry shall have thereafter one vote for each 
of the five (5) members of the Code Authority. 

(b) Each member of the industry who is a member of the National 
Cotton Pickeries Association shall have one vote for each of the 
four (4) members of the Code Authority who may be members of 
the National Cotton Pickeries Association or employees of members 
of the Association ; each member of the industry who is not a mem- 
ber of the Association shall have one vote for the member of the 
Code Authority who shall be a non-member of the Association or 
an employee of such non-member. At each election the voting may 
be by person, by proxy, or by letter, and such voting may be 
cumulative. 

(c) Members of the Code Authority shall be elected annually by 
majority vote at an annual meeting of members of the industrj^, held 
for that purpose, for a term of one year; provided, however, that 
the first Code Authority shall serve until the annual meeting of 
members of the industry to be held in June, 1934. 

(d) Alembers of the Code Authority shall be certified to the Ad- 
ministrator by the Secretary of the National Cotton Pickeries 
Association. 

(e) In addition to membership as above provided, there may bo 
not more than three (3) members, without vote, to be appointed by 
the Administrator to serve for such term or terms as he may 
designate. 

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

Section 3. In order that the Code Authoritj' 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 4. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent, or employee 
of the Code Autliority. 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 nonfeasance. 

Section 5. If the Administrator shall at any time determine that 
an}^ 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 opport-imity for 
investigation of the merits of such action and further consideration 



235 

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. 

POWERS AND DUTIES 

Section 6. Subject to such rules and regulations as may be issued 
by the Administrator, the Code Authority shall have the following 
powers and duties, in addition to those authorized by other pro- 
visions of this Code. 

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

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

(c) To obtain from members of the industry such information 
and reports as are required for the administration of the Code. In 
addition to information required to be submitted to the Code Au- 
thority, members of the industry 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 he may designate; provided that 
nothing in this Code shall relieve any member of the industry of any 
existing obligations to furnish reports to any Government agency. 
No individual report shall be disclosed to any other member of the 
industry or any other party except to such other Governmental 
agencies as may be directed b}^ the Administrator. 

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

(e) To appoint a fair trade practice committee which shall meet 
with the trade practice committee appointed under such other codes 
as may be related to the industry for the purpose of formulating the 
fair trade practices to govern the relationships between production 
and distribution employers under this Code and such other codes to 
the end that such fair trade practices may be proposed to the Admin- 
istrator as amendments to this Code and such other codes. 

(f) To make recommendations to the Administrator for the coor- 
dination of the administration of this Code with such other codes, 
if an3^ as may be related to the industry, 

(g) 1. It being found necessary, in order to support the adminis- 
tration of this Code and to maintain the standards of fair competition 
established by this Code and to effectuate the policy of the Act, the 
Code Authority is authorized, subject to the approval of the 
Administrator ; 

(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes and to meet such obligations out 
of funds which may be raised as hereinaft-er provided and which 
shall be held in trust for the purposes of the Code; 



236 

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary, 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the funds necessary 
to support such budget shall be contributed by members of the 
Industry; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and secure equitable 
contribution as above set forth by all such members of the Industry, 
and to that end, if necessary, to institute legal proceedings therefor in 
its own name. 

2. Only members. of the Industry complying with the Code and 
contributing to the expenses of its administration as provided in 
Section 1 hereof shall be entitled to participate in the selection of the 
members of the Code Authority or to receive the benefit of its volun- 
tary activities or to make use of any emblem or insignia of the 
National Recovery Administration. 

(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. 

Article VII — Unfair Trade Practices 

Section 1. Inaccurate marking. 

It shall be an unfair practice and is prohibited to fail to mark 
accurately and permanently all bales of cotton that have been handled 
to indicate the treatment which such cotton has been given and, in 
accordance with the definitions in Article II, under one of the follow- 
ing designations: Conditioned, Repacked, Reginned, or Pickings. 
This shall not apply to a bale containing the regular cotton remaining 
after the damaged cotton has been removed from a damaged bale. 

Article VIII — Export Trade 

Section 1. No provision of this Code relating to prices or terms 
of selling, shii^ping or marketing shall apply to export trade or sales 
or shipments for export trade.^ 

Article IX — Modificatign 

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 said Act. 

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



» See paragraph 2 of order approving this Code. 



237 

Article X — MoNoroLTEs, Etc. 

No provisions 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 — Effective Date 

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



Approved Code No. 433. 
Registry No. 224-02. 



o 



Approved Code No. 434 
CODE OF FAIR COMPETITION 

FOR THE 

RIVER AND HARBOR IMPROVEMENT INDUSTRYi 

As Approved on May 18, 1934 



ORDER 



Approving Code of Fair Competition River and Harbor 
Improvement 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 River and Harbor Improvement 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- 
l^oses 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 Adimnistrator. 

Washington, D.C, 

May IS, 1931 

00378° 544—114 34 (239) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
River and Harbor ImproAement Industry, revised after a public 
hearing conducted in Washington on December 19, 1933, in accord- 
ance with provisions of the National Industrial Recovery Act. 

THE INDUSTRY 

Included in this Industry is dredging, submarine rock removal, 
land reclamation, marine and subaqueous work, and the maintenance 
and improvement of rivers, harbors and waterways, when such opera- 
tions are done by marine plant and organization. 

PROVISIONS FOR HOURS AND WAGES 

The Code provides for a maximum week of forty (40) hours with 
the following exceptions: 

(a) Upon approval of the National Industrial Relations Board, 
provided for in the Code, employees are permitted to work forty- 
eight (48) hours in any week in any of the following cases: 

(1) On remote and inaccessible projects requiring camps or float- 
ing plants to board a majority of the labor employed; 

(2) On projects of the type described in the preceding paragraph 
(1), time lost on account of inclement weather or unavoidable delays 
in any one week, may be made up in the following four weeks; 

(3) On projects where a sufficient amount of qualified labor is not 
available ; 

(b) Employees engaged in executive, or supervisory work receiv- 
ing thirty-five dollars ($35.00) or more per week; 

(c) Employees engaged in emergency maintenance, or emer- 
gency repair work, and watchmen. 

The Code establishes a minimum rate of forty (40) cents per 
hour for laborers. Office and clerical employees will be paid mmi- 
mum rates of from fourteen dollars ($14,00) to fifteen dollars 
($15.00) per week, based on population differentials. 

No person under eighteen (18) years of age shall be employed, 
except persons over sixteen years of age may be employed as office 
or mess boys. The Code provides that no employer shall reclassify 
employees for the purpose of evading the Act. It contains pro- 
visions for the adjustment of wages above the minimum, posting 
the Code, and for payment of wages in regular periods. 

The establishment of a National Industrial Relations Board, 
with equal representation for employers and employees, is pro- 

(240) 



241 

vided for to deal with disputes concerning and to seek comiDliance 
with the labor provisions of the Code. 

ECOXOMIC EFFECT OF THE CODE 

According? to the statistical analysis of the Division of Research 
and Planning-, the total volume of work done decreased from 
$100,000,000 in 1929 to $09,200,000 in 1933. Emploj^ees decreased 
from 40,000 in 1929 to 35,000 in 1933— a much less decrease than 
in many other industries. ' 

The release of funds by the Public "Works Administration will 
do much to stimulate the industiy and increase employment. The 
establishment of a forty (40) hour week should increase the num- 
ber of employees approximately twenty-five (25) percent in doing 
the same relative volume of work as was done prior to signing the 
President's Reemployment Agreement by this Industry. 

The establishment of a minimum rate of pay and maximum 
hours of work will measurably benefit workers and increase pur- 
chasing power. Generally, wages paid by this Industry have been 
very fair and equitable. 

FINDINGS 

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

I find that: 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will provide 
for the general welfare by promoting the organization of industry 
for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and management 
under adequate governmental sanctions and 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 unemployement, 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 vrith 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 associ- 
ation is an industrial association trul}- 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 monoj)olies 
or monopolistic practices. 



242 

(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 procass have not 
been deprived of the right to be heard prior to approval of said Code. 

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

Hugh S. Johnson, 

A d'ministrator. 

Mat 18, 1934. 



CODE OF FAIR COMPETITION FOR THE RIVER AND 
HARBOR IMPROVEMENT INDUSTRY 

Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Code of 
Fair Competition for the River and Harbor Improvement Indus- 
try, and shall be the standard of fair competition for this industry 
and shall be binding upon every member thereof. 

Article I — AppLicATioisr 

The provisions of this Code shall apply to the entire industry, as 
hereinafter defined, excluding operations therein undertaken in ac- 
cordance with bona fide contracts entered into prior to June 16, 
1933. If any other code of fair competition or a provision thereof, 
heretofore or hereafter approved by the President, shall conflict 
with this Code or with any provisions thereof, the Administrator may 
hold such hearings as he may deem necessary and thereafter may, if 
in his judgment justice requires, grant such stay, exception or ex- 
emption, or make such other determination as he may deem advisable 
to effectuate the policies of the Act. 

Article II — Definitions 

Section 1. The term " River and Harbor Improvement Indus- 
try ", or " The Industry ", as used herein means and includes each 
and all of the following operations, (including the use and operation 
of tugs and launches employed as tenders in connection therewith), 
when done by marine plant and organization: 

^a^ Dredging; 

(b) submarine rock removal, land reclamation by dredging, marine 
and subaqueous work in rivers, harbors and waterways ; 

(c) maintenance and improvement of rivers, harbors and water- 
ways; and 

(d) such branches and subdivisions thereof as may be included 
hereunder with the approval of the President. 

Section 2. The term " employee " as used herein includes any 
person engaged in the industry, however compensated, except a 
member of the industry. 

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

Section 4. The term " member of the industry " includes, but 
without limitation, any individual, partnership, association, corpo- 
ration or other agency or form of enterprise which undertakes, 
whether by formal contract or otherwise, to direct, superintend, 
coordinate or execute, any of the operations of the industry. 

(243) 



244 

Section 5. The term "Association " as herein defined shall mean 
the River and Harbor Improvement Association of the United 
States. 

Section 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 
Administrator for Industrial Recovery 

Section 7. " Population " for the purposes of this Code shall be 
determined by reference to the 1930 Federal Census. 

Article III — Houbs and Wages 

Sectton 1. Howrs. — No employee shall be permitted to work in 
excess of forty (40) hours in any week, or eight (8) hours in any 
twenty-four (24) hour period, with the following exceptions: 

(a) On application of the interested parties and after approval 
of the National Industrial Relations Board or Regional Boards 
established by it, an employee may be permitted to work forty-eight 
(48) hours in any week in any of the following cases: 

(1) On projects located at points so remote and inaccessible that 
camps or floating plants are necessary for the housing or boarding 
of a majority of the labor employed; 

(2) On projects of the type described in the preceding paragraph 
(1), when working time has been lost becau-e of inclement weather 
or unavoidable delays in any one week, in which case such lost time 
ma^/ be made up in the following four Aveeks ; 

(3) On projects in localities where a sufficient amount of qualified 
labor is not available in the immediate vicinity of the work; 

(b) Employees engaged in executive or supervisory work receiv- 
ing compensation at the rate of thirty-five dollars ($35.00) or more 
per week; 

(c) Accounting, clerical, or office employees; 

(d) Watchmen, who shall not be permitted to work in excess 
of fifty-six (56) hours in any week or in excess of six (C) days in 
any seven (7) day period, provided that there shall be no limita- 
tion upon the hours of watchmen housed on the work ; 

(e) The maximum hours provided in this Article shall not apply 
to employees engaged in emergency maint-enance or emergency re- 
pair work on floating equipment involving breakdowns, or the pro- 
tection of life or proi^erty. but in any such special cases at least 
time and one-half shall be paid for the hours worked in excess of the 
daily and/or weekly maximum hours herein provided ; 

(f) When it is necessary to transfer plant equipment, materials 
or employees between points requiring more than sixteen (IG) con- 
tinuous hours to effect the transfer, emploj^ees may be permitted to 
work twelve (12) hours in any twenty- -four (24) for the duration 
of the transfer and the return trip; provided, however, that an 
overtime rate of time and one-half the normal rate be paid for any 
hours worked in excess of the maximum hours per day herein estab- 
lished. This exception shall apply only to vessels which are so 
limited in size as to contain no accommodations for housing the 
crew on three watch operations. 

Section 2. Hours for Clerical and 0-ffice Employees. — No account- 
ing, clerical or office employee shall be permitted to work in excess 



245 

of forty (40) houi-s per week averaged over a consecutive four (4) 
week period. 

Section 3. Employment hy Several Employers. — No employer 
shall knowingly permit any employee to work any number of hours 
which, when totaled with that already performed for another em- 
ployer or employers in this industry, exceeds the maximum permitted 
herein. 

Sectiox 4. Wages. — 

(a) Minimiim- Wages. — No emploj-ee, excluding accounting, office 
and clerical employees, shall be paid at less than the rate of forty (40) 
cents per hour, provided, however, that the provisions of this para- 
graph (a) shall not be construed as establishing a minimum rate of 
pay for other than common or unskilled labor; and provided further 
that such provisions shall not be construed to authorize reductions in 
existing hourly rates of pay. 

(b) Minimum. Salaries f&r Clerical and Ofjiee Employees. — No ac- 
counting, office or clerical employee shall be paid less than at the rate 
of fifteen dollars ($15.00) per week in any city of over 500,000 popu- 
lation or the immediate trade area of such city, nor less than fourteen 
and a half dollars ($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 tlian fourteen dollars ($14.00) per week in any city or town 
of less than 250,000 population, or the immediate trade area of such 
city or town. 

(c) Paymerd of Wages. — All wages due shall be payable on a regu- 
lar periodical basis and at least semi-monthly, in lawful currency, or 
by a negotiable check therefor payable on demand at par. These 
wages shall be exempt from any payments for pensions, insurance or 
sick benefits other tlian those voluntarily paid by employees. Em- 
plo^^ers and their agents shall accept no rebate either directly or in- 
directly on such wages, or give anything of value or extend favors to 
any person for the purpose of influencing rat«s of wages or the 
working conditions of their employees. 

(d) Pieceroork Compensation. — This Article establishes a mini- 
mum rate of pay regardless of whether an employee is compensated 
on a time rate, piecework or other basis. 

(e) Living Quarters anel Svhsi^tence. — \ATien living quarters and 
subsistence are furnished by or at the expense of the employer, the 
charge made for such accommodations and subsistence shall be in 
accordance with applicable existing contract or agreement, or in the 
absence of an applicable existing contract or agi'eement at such rates 
as are prescribed or approved by the proper governmental agency or 
agencies, and in any event, not more than one dollar ($1.00) per 
calendar day. The minimum hourly rates of pay as defined in this 
Article shall be computed before giving effect to any charge or de- 
duction on account of the furnishing by or at the expense or the em- 
ployer of any such living accommodations and subsistence. 

(f) Within thirty (30) days after the effective date of this Code 
(unless adjustment has been made theretofore) each employer shall 
adjust all schedulers of wages in an equitable manner in view of the 
reduction of hours of employment, and preserve wage differentials 
reasonably proportionate to those in effect prior to the effective date 
of this Code. 



246 

Article IV — General Labor Provisions 

Section 1. Provisions of the Act. — 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 emj^loyers 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 organiza- 
tion of his own choosing; employers shall comply with the maximum 
hours of labor, minimum rates of pay, and other conditions of em- 
ployment, approved or prescribed by the President. 

Section 2. State Laics. — This Code shall not supersede any State, 
Federal or local laws imposing more stringent requirements on em- 
plovers regulating the age or employees, wages, hours of work, or 
health, fire or general working conditions than under this Code. 

Section 3. Reclassi-ficatlon. — Employers shall not reclassify em- 
ployees or duties of occupations performed by employees or engage 
in any other subterfuge for the intent or purpose of defeating the 
purposes of the Act. No employee now employed at a rate in excess 
of the minimum shall be discharged and reemployed at a lower rate 
for the purpose of evading the provisions of this Code. 

Section 4. Posting. — On and after the effective date of this Code 
all employers shall post and keep posted in accessible places all pro- 
visions of this Code which affect hours of employment, rates of pay 
and all other labor provisions. 

Section 5. Stanaards for Safety a7\d Health. — Every employer 
shall make reasonable provision for the safety and health of his 
employees during the hours and at the places of their employment. 
Standards for safety and health and sanitary regidations, as well 
as living conditions on board dredges, shall be submitted by the Code 
Authority to the Administrator within six (G) months after the 
effective date of this Code. 

Section G. Prison lahor. — Employers shall not employ prison 
labor in the execution of the work. 

Section 7. Minimum age. — No person under eighteen (18) years of 
age shall be employed in the industry, provided, however, that per- 
sons sixteen (16) years or over may be employed as office boys, mess 
boys or water boys. 

Section 8. Continuity of Em/pJoyment. — Employers shall adminis- 
ter AYork in their charge so as to procure the maximum practicable 
continuity of employment for their employees. 

Section 9. C ompliance ivith Estohtished Lahor Provisions. — Where 
provisions concerning hours of labor or rates of pay have been estab- 
lished for specific projects, by competent governmental authority 
or agencies (whether Federal, State or political subdivisions thereof) 
acting in accordance with law, any emploj^er required to comply and 
complying with the provisions so established shall be relieved of com- 
pliance with an}?^ conflicting provisions of Article III, or of any 
actions taken in accordance therewith. 

Section 10. Any employer required to comply and complying with 
the i^rovisions of a valid labor agreement in force on the effective 



247 

date shall be relieved to the extent of his legal obligations thereunder 
of compliance durine: the period of such agreement, with any con- 
flicting provisions of Article III, or of any actions taken in accord- 
ance therewith. 

Section 11, Ai'ea Agreements. — Standards as to the maximum 
hours of labor, minimum rates of pay, and such other conditions of 
employment as may be necessary to effectuate the policies of Title I 
of the Act in the industry may be esiablished for any area forming 
an existing district of the Corps of Engmeers, United States Army, 
by mutual agreements arrived at and pursuant to the provisions of 
Section 7 (b) of the Act, provided that the wage and hour provisions 
of such agreements shall not conflict with the wage and hour pro- 
visions established in this Code. 

Section 12. Requirements of Buhcontractors. — No member of this 
industry shall employ any subcontractor or other agency in opera- 
tions within the industry requiring the services of laborers or me- 
chanics on the site of the w^ork unless such subcontractor or other 
agent shall affirmatively covenant to pay at least the established 
minimum rate of wages herein provided for and work not more than 
the maximum hours of employment herein established. 

Article V — Administration 

Section 1. Further to effectuate the policies of the Act there shall 
bs established a " Code Authority for the River and Harbor Improve- 
ment Industry " (hereinafter referred to as "the Code Authority ") 
composed of seventeen (17) members of the industry eligible under 
the provisions of Section 9 of this Article, to be elected as follows : 

From each of the following seven Geogi-aphical Divisions of the 
United States, established by the Corps of Engineers, United States 
Army : 

North Atlantic Division 

South Atlantic Division 

Upper Mississippi Division 

Lower Mississippi Division 

Gulf of Mexico Division 

Pacific. Coast Division 

Great Lakes Division 

one member shall be elected by the members of the industry in that 
division; in addition, eight members of the Code Authority shall be 
elected by members of the industry from the United States at large, 
and the President and Vice-President from time to time of the Asso- 
ciation shall be members ex-officio of the Code Authority. Any 
member may appoint his own alternate or representative to act for 
him at meetings. The Administrator may appoint three non-voting 
members of the Code Authority to act as his representatives, serving 
without expense to the industry. 

Voting members of the Code Authority shall serve for terms of one 
(1) year each, provided that provision may be made in the by-laws 
of the Code Authority for the staggering of such terms, and the 
method of election employed for the election of such members shall 
be subject to the approval of the Administrator. The Association is 
hereby designated as an agency for the purpose of arranging for the 



248 

original elections of members of the Code Authority and for any 
other such elections not otherwise provided for in the by-laws of the 
Code Authority. 

Section 2. In the event of any vacancy in the membership of the 
Code Authority a special election to fill the incomplete terms of such 
members shall be called. Notice of the time and place of each elec- 
tion shall be sent by registered mail to all members of the industry 
known to, or ascertainable after a diligent investigation by, the Asso- 
ciation and eligible to vote thereat at least twenty (20) days in 
advance of such election, and voting at such election may be by per- 
son, by proxy, or by letter ballot. Any vacancy in the Code Author- 
ity shall be filled in such manner as to preserve the representative 
character fixed by Section 1 of this Article. Not more than one (1) 
representative of the eligible members of the industry shall vote at 
any election. 

Section 3. In any one of the seven divisions, as defined in Section 
1 of this Article, a divisional code authoritj^, of which the member 
of the Code Authority elected by the members of the industry within 
that division shall be the Chairman, may be formed by the members 
of the industry in such division, for the purpose of supervising and 
administering this Code in such division under such powers and 
duties as may be delegated to it by the Code Authority. 

Section 4. In order that the Code Authority and the divisional 
code authorities shall at all times be truly representative of the in- 
dustry 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 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 divisional code authority. 

Section 5. There shall be no future amendment of the constitu- 
tion and by-laws of the Association which will tend to make the 
organization not truly representative of the industry as herein de- 
fined or which will impose any inequitable restriction upon member- 
ship. The Association shall submit to the Administrator any amend- 
ments in its Articles of Association, by-laws, or regulations, if and 
when adopted, and such other information as to its membership, 
organization and activities as the Administrator may require to 
effectuate the purposes of the Act. 

Section G. Nothing contained in this Code shall constitute the 
members of the Code Authority or of any divisional code authorities 
partners for any purpose. Nor shall any member of the Code 
Authority or of any divisional code authority be liable in any man- 
ner to anyone for any act of any other member, officer, agent, or 
employee of the Code Authority or of any di^-isional code authority. 
Nor shall any member of the Code Authority or of any divisional 
code authority, exercising reasonable diligence in the conduct of his 
duties hereunder, be liable to anyone for any action or omission to 
act under this Code, except for his own wilful misfeasance or 
nonfeasance. 

Section 7. Poio^ers and Deifies of the Code Aidhorify. — The Code 
Authority shall have, in addition to any other powers or duties 



249 

conferred upon it elsewhere herein, the following powers and duties 
to the extent permitted by the Act : 

(a) It may establish by-laws or rules and regulations for the 
conduct of its affairs and may appoint such committees, agencies 
and representatives and delegate to them such of its powers and 
duties as it may deem necessary for the proper discharge of its 
functions hereunder. 

(b) To mal^e from time to time to the Administrator any recom- 
mendations which it deems desirable for modifications of or addi- 
tions to the Code, which recommendations upon the Administrator's 
approval and after such hearing as he may prescribe, shall become 
a part of this Code and have full force and effect as provisions 
thereof. 

(c) Subject to such rules and regulations as the Administrator 
may issue, to make investigations and surveys concerning the func- 
tioning of and compliance with this Code, the observance of its 
provisions, including the collection of reports on hours of work and 
rates of compensation and other pertinent matters, whether at the 
request of the Administrator or otherwise, and to report its findings 
and recommendations to the Administrator whenever necessary or 
required. 

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

Section 8. It being found necessary, in order to support the ad- 
ministration of this Code and to maintain the standards of fair 
competition established by this Code and to effectuate the policy of 
the Act, the Code Authority is authorized, subject to the approval of 
the Administrator : 

(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes and to meet such obligations 
out of funds which may be raised as hereinafter provided and which 
shall be held in trust for the purposes of the Code ; 

(b) to submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary, 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the funds necessary 
to support such budget shall be contributed by members of the 
industry ; 

(c) after such budget and basis of contribution have been approved 
by the Administrator, to determine and secure equitable contribution 
as above set forth by all such members of the industry, and to that 
end, if necessary, to institute legal proceedings therefor in its 
own name. 

Section 9. Only members of the industry complying with the 
Code and contributing to the expenses of its administration as pro- 
vided in Section 8 hereof shall be entitled to participate in the selec- 
tion of the members of the Code Authority or to receive the benefit 



250 

of its voluntary activities or to make use of any emblem or insignia 
of the National Recovery Administration. 

Section 10. Reports. — 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 Admin- 
istrator 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; and nothing in this Code shall relieve any person 
of any existing obligation to furnish reports to government agencies. 

Section 11. National Industrial Relations Board. — There shall be 
established by the Administrator a National Industrial Relations 
Board for the industry to deal with disputes concerning and to seek 
compliance with labor provisions of this Code. Such Board shall 
consist of an equal number of representatives of employers and em- 
ployees, who shall choose an impartial chairman, provided that if 
such chairman cannot be agreed upon the Administrator may, upon 
the request of such Board, appoint the chairman. If no truly rep- 
resentative labor organization exists, the employee members of such 
board may be nominated by the Labor Advisory Board of the Na- 
tional Recovery Administration and appointed by the Administrator. 
The employer representatives shall be chosen by the Code Authority. 
The Board may establish regional agencies, similarly formed, in any 
existing district of the Corps of Engineers, United States Army. 
Pending adjustment of any dispute before such Board, or regional 
agencies, such Board or Boards shall use their best endeavors to 
prevent cessation of work on account thereof. 

Article VI — Appeals 

Section 1. Any directly interested party shall have the right of 
complaint to the appropriate divisional code authority, and of a 
prompt hearing and decision in respect of any decision, rule, regula- 
tion^ order or finding made by such authority, under such reasonable 
rules or regulations as may be prescribed by such authority. 

Section 2. In respect of any decision, rule, regulation, order or 
finding made by any divisional code authority, any directly interested 
party shall have the right of complaint to the Code Authority and 
of a prompt hearing and decision under such rules of procedure and 
proper charges to cover cost of investigation and hearing as it may 
prescribe. 

Section 3. Any directly interested party shall have the right of 
appeal to the Administrator, subject to such rules and regulations 
as he may prescribe, in respect to any decision, rule, regulation, or- 
der or finding made by the Code Authority. 

Section 4. The Code Authority shall be empowered to hear dis- 
putes between divisional code authorities, committees, or agencies. 

Article VII — Trade Practices 

Gener'al De-flnition. — 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, 



251 

or permit to be employed, any of such unfair practices shall be 
guilty of a violation of the Code. 

Section 1. Secret Rchates. — No member of the industry shall 
make any secret payment or allowance of rebates, refunds, com- 
missions or unearned discounts, whether in the form of money or 
otherwise or secretly extend to certain purchasers special services 
or privileges not extended to all purchasers under like terms and 
conditions. 

Section 2. C o-mmerc'ml 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 actions of 
any employee, agent, or representative of another in relation to the 
business of the employer of such emplo3'ee, the principal of such 
agent or the represented party, without the knowledge of such em- 
ploj'er, principal or party. This provision 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 com- 
mercial bribery as hereinabove defined. 

Section 3. Submitting Bids. — No member of the industry shall 
submit competitive bids except in writing and signed by him or 
his authorized representative. 

Section 4. Bid Peddling and Bid Shopping. — No member of the 
industry shall engage in " bid peddling " or " bid shopping " or any 
similar unfair practice. 

(a) Bid peddling in effect means the offering by the bidder prior 
to the making of an award of a substitute bid or price lower than the 
one originallj^ bid without a commensurate decrease in the require- 
ments of the job. 

(b) Bid shopping in effect means the effort on the part of the 
awarding principal or owner, or his agent, to induce a bidder prior 
to the making of the award to lower his original bid price without 
a commensurate decrease in the requirements of the job. 

Section 5. Revision of Bids. — No member of the industry shall 
encourage or attempt to induce the owner or his agent to reject bids 
and readvertise in order that such member may revise his original 
bid or offer. 

Article VIII — Monopolies 

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

Article IX — Modieications 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of Sub-section (b) of Section 10 of the Act, from time to 
time to cancel or modify any order, approval, license, rule or regu- 
lation issued under Title I of the said Act and specifically, but with- 
out limitation, to the right of the President to cancel or modify his 
approval of any provisions of this Code or any conditions imposed 
by him in his approval thereof. 



252 

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

Article X — RE\^EW of xVcts of Code Authorities 

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 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. 

Article XI — Effectimi; Date 

This Code shall become effective on the thirtieth (30th) day after 
its approval by the President. 



Approved Code No. 434. 
Registry No. 1618-A-02. 



O 



Approved Code No. 435 
CODE OF FAIR COMPETITION 

FOR THE 

SHOWER DOOR INDUSTRY 

As Approved on May 19, 1934 



ORDER 



Approving Code of Fair Competition for the Shower Door 

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 Shower Door Industry, and hearings having 
been duly held thereon and the annexed report on said Code, con- 
taining findings with respect thereto, having been made and directed 
to the President: 

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

Hugh S. Johnson, 
AdTninistrator for IndtistHal Recovery. 

Approval recommended: 
A. R. Glancy, 

Division Administrator. 

Washington, D.C, 

May 19, 1934. 

60377°^— 544— 113 34 (253) 



KEPORT TO THE PRESIDENT 

The President, 

The 'White House. 

Sir : This is a report on the Code of Fair Competition for the 
Shower Door Industry, the hearing having been conducted in Wash- 
ington on February 20, 1934, in accordance with the provisions of 
Title I of the National Industrial Recovery Act. 

INDUSTRY BACKGROUND 

The Shower Door Industry to a great extent is dependent upon 
the construction and building of high class hotels, apaitment houses, 
hospitals and private residences. The industry, although compara- 
tively small and new in the field of construction gives promise of 
taking a more prominent place in the future due to the increasing 
demand of the public for ultra-modern conveniences in building 
construction. 

HOURS AND WAGES 

The Code provides a standard work week of 40 hours for plant 
employees. Exception is made in regard to truckmen who shall be 
permitted to work 45 hours per week with a maximum average of 
not more than 40 hours a week during a four (4) consecutive weeks' 
period. Office employees are limited to an average of 40 hours per 
week. The minimum wage rate for plant and service employees is 
45 cents per hour. Mechanics' helpers shall receive 90% of the mini- 
mum hourly rate and office employees a minimum wage of $16.00 per 
week. 

ECONOMIC EFFECT OF THE CODE 

The Industry employed in 1929 approximately 300 persons, in- 
cluding office employees. Approximately 218 were factory workers. 
A slight increase in employment will result from the reduction of 
hours to the 40 hour maximum work week. The minimum wage rate 
of 45 cents per hour will represent an increase in weekly wages 
for 23 percent of the emplojxes. The Industry comprising approxi- 
mately 23 concerns has an invested capital of about $500,000 and an 
average annual sales volume of approximate!}^ $1,000,000. 

FINDINGS 

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

(254) 



255 

I find that: 

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

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

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said 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 the approval of said 
Code. 

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

Hugh S. Johnson, 

Administrator. 
May 19, 1934. 



CODE OF FAIR COMPETITION FOR THE SHOWER DOOR 

INDUSTRY 

Arttole 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 Shower Door Industry, and shall be the 
standard of fair competition for such industry and shall be binding 
on every member thereof. 

Article II — Definitions 

The term " Shower Door Industry " or " Industry " as used herein 
includes the manufacture and sale by the manufacturer of shower 
doors, bathtub and shower enclosures, composed of various metals 
and glass. 

Section 1. The term " member of the industry " includes anyone 
engaged in the Industry either as an employer or on his or its own 
behalf. 

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

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

Section 4. 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 Ad- 
ministrator for Industrial Recovery. 

Section 5. The term " Code Authority " as used herein means the 
body constituted under Article VI herein to administer this Code. 

Section 6. The term "Association " as used herein is defined to 
mean the National Shower Door Manufacturers Association. 

Article III — Hours 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any week, or eight (8) hours in any twenty-four 
(24) hour period; except as herein otherwise provided. 

Section 2. No employees employed as truckmen shall be permitted 
to work in excess of forty-five (45) hours in any one week, with a 
maximum average of not more than forty (40) hours a week during 
a four (4) consecutive week period. 

Section 3. The maximum hours fixed in the foregoing sections 
shall not apply to any employees engaged in 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 

(256) 



257 

times the normal rate shall be paid for hours worked in excess of 
forty (40) hours per week or eight (8) hours per day. 

(a) The provisions of this Article shall not apply to traveling 
salesmen nor to persons engaged in executive, managerial, or super- 
visory capacities, who receive not less than $35.00 per week. 

Section 4. No employer shall knowingly permit any employee to 
work for any time which, when totalled with that already performed 
with another employer or employers exceeds the maximum permitted 
herein. 

Sectiox 5. Employers who personally perform manual work or are 
engaged in mechanical operations shall not exceed the maximum 
number of hours herein prescribed. 

Article IV — Wages 

Section 1. No employee shall be paid at a rate of less than forty- 
five cents (45^) per hour; except that, 

(a) Any emjjloyee engaged in clerical or office work shall be paid 
at not less than sixteen (IG) dollars per week, but messengers and 
office boys may be paid at the rate of not less than eighty (80) 
percent of the wage rate paid to clerical or office help, provided 
that there shall be not more than one such employee to each twenty 
office employees or fraction thereof. 

Section 2. Piecework compensation. This Article establishes 
a minimum rate of pay which shall apply w^hether an employee is 
compensated on a time rate, piecework, or other basis. 

Section 3. Equitable adjustments in pay schedules of all em- 
ployees 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 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, provided 
that in no case shall hourly rates of pay be reduced. 

Section 4. This Article establishes rates of pay w^hich shall be 
exempt from any charge, fines, and/or deduction by the employer. 

Section 5. An employer shall make payment of all wages due not 
otherwise than in lawful currency or by negotiable check, payable on 
demand. These wages shall be exempt from any payments for pen- 
sions, insurance, or sick benefits other than those voluntarily paid by 
the wage earners, or required by laws. Wages shall be paid at least 
at the end of every two week period, and salaries at least at the end 
of every month. No employer shall withhold wages lawfully due 
and payable. 

Section 6. No one shall accept special rebates or free services or 
other gratuities from employees which shall have the effect of a 
reduction in wages. 

Section 7. Mechanic's helpers between the ages of 18 and 21 are 
not included in the wage provisions of Section 1 of this Article, ex- 
cept that they shall in no case be paid less than 90% of the minimum 
rate per hour described in Section 1 and provided that the total 
number of such employees shall not exceed one employee for each 
ten employees, or fraction thereof, engaged in manufacturing oper- 
ations; and provided also that at the end of his first year's service 



258 

any such helper shall be paid not less than the minimum wage rate 
described in Section 1. 

Article V 

Sectiox 1. No person under eighteen (18) years of age shall be 
employed in the industry. 

Section 2. Employees shall have the right to organize and bar- 
gain collectively through representatives of their own choosing, 
and shall be free from the interference, restraint, or coercion of 
employers of labor, or their agents, in the designation of such repre- 
sentatvies 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 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. Within each state this Code shall not supercede any 
laws of such state imposing more stringent requirements on employ- 
ers regulating the age of employees, wages, hours of work, or health, 
fire protection, or insurance or general working conditions, than 
under this Code. 

Section 6. 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 7. This Code shall not supersede the provisions in any 
existing labor agreements establishing hours, wages and conditions 
of employment more favorable to employees than the provisions of 
this Code. 

Section 8. A days' work shall constitute eight (8) continuous 
hours of employment with not more than one hour intermission 
during the course of this period for lunch or any other meal. 

Section 9.- 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. 

Section 10. All employers shall post copies of this Code in accord- 
ance with such rules and regulations as the Administrator may 
prescribe. 

Article VI — Administration 

Section 1. To further effectuate the policies of the Act, a Code 
Authority shall be formed to cooperate with the Administrator in 
the administration of this Code. 

(a) The Code Authority shall consist of five members of the In- 
dustry, three of whom shall be members of the Association, who 
shall be elected by a majority vote of the Board of Directors of the 
Association. The two members who are not members of the Associ- 



259 

ation shall be elected by membGrs of the Industry not members of 
the Association by a mail ballot to be conducted by the Association 
within ten days after the effective date of the Code, such ballots to 
be sent by rejristered mail to all ascertainable members of the Indus- 
try not members of the Association and the Association shall certify 
the results of this election to the Administrator for approval. Each 
such member of the Code Authority shall serve for a term not ex- 
ceeding one year or until his successor is elected, and shall have one 
vote. 

In addition, the Administrator may appoint not more than three 
non-voting members to such Code Authority. 

Section 2. (1) It being found necessary to support the Adminis- 
tration of this Code, in order to effectuate the policy of the Act and 
to maintain the standards of fair competition established hereunder, 
the Code Authority is authorized : 

(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes and to meet such obligations out 
of funds which shall be held in trust for the purposes of the Code 
and raised as hereinafter provided : 

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary: 

1. An itemized budget of its estimated expenses for the fore- 

going purposes, and 

2. An equitable basis upon which the funds necessary to support 

such budget shall be contributed by all members of the 
Industry entitled to the benefits accruing from the mainte- 
nance of such standards, and the administration thereof; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and collect equitable 
contributions as above set forth, and to that end, if necessary, to 
institute legal proceedings therefor in its own name. 

(2) Each member of the industry shall be liable for his or its 
equitable contribution to the expenses of the maintenance of the Code 
Authority as hereinabove provided. Only members of the industry 
complying with the Code and making such contribution shall be en- 
titled to participate in the selection of the members of the Code Auth- 
ority or to receive the benefits of its voluntary activities or to make 
use of any N.R.A. insignia. 

Section 3. The Code Authority shall have the following duties 
and powers. 

(a) Under such rules and regulations as the Administrator may 
prescribe, to insure the execution of the provisions of this Code 
and provide for compliance of the members of the Industry with 
the provisions of the Act and this Code. 

(b) The making of such reports as the Administrator may re- 
quire and the collecting from members of the Industry periodically 
or as often as it may direct sworn or unsworn reports on wages, 
hours of labor, conditions of employment, number of employees, 
and other matters pertinent to the provisions of this Code. 

(c) The causing to be formulated of 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 has been approved by the Administrator full 



260 

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. 

(d) The appointing of a secretary ^Yho shall file and keep confi- 
dential an}- and all information requested by the Code Authority; 
the reports of individual members shall not be divulged to any 
member of the Industry {>xcept in compiled summaries, but shall be 
available to the Administrator upon request. 

(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 
practices to govern the relationships between production and distri- 
bution employers under this Code and under such others to the end 
that such fair trade practices may be proposed to the Administrator 
as amendments to this Code and such other codes. 

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

Section 4. No member of the Code Authority shall act in any 
matter involving a member of the Industry by whom he is employed 
or with whom he is associated or affiliated. 

Section 5. Any Association directly or indirectly participating 
in the selection or activities of the Code Authority shall (1) impose 
no inequitable restrictions on membership and (2) submit to the 
Administrator true copies of its articles of association, by-laws, 
regulations, and any amendments 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 6. In order that the Code Authority shall at all times be 
truly representative of the Industry and in other respects comply with 
the provisions of the Act, the Administrator may provide such hear- 
ings as he may deem proper; and thereafter if he shall find that the 
Code Authority is not truly representative or does not in other re- 
spects com^Dly with the provisions of the Act, he may require an ap- 
propriate modification in the method of selection of such Code 
Authorit}^ 

Section 7. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any 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. 

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 



261 

unless the Administrator approves or unless he shall fail to disap- 
prove after thirt}^ days' notice to him of intention to proceed with 
such action in its original or modified form. 

Article VII — Trade Practices 

Rule 1. It shall be an unfair practice to allow cash discounts or 
other terms of payments which shall reduce sales price below cost, 
except as specified in Article VIII of this Code. 

Rule 2. Members of the Industry may allow 2% cash discount for 
payments made in t«n days. Interest at the rate of 6% or the legal 
maximum whichever is lower shall be charged for all accounts not 
paid within sixty days of installation. 

Rule 3. No member shall give any guarantee against any decline 
in prices or any allowances in any shape, form or manner. 

Rule 4. The sale or offering for sale of products of the industry 
under any form of guarantee against advance or decline in prices 
shall be considered an unfair trade practice. 

Rule 5. No member of the industry shall secretly offer or make 
any payment or allowance of a rebate, refund, commission credit, 
unearned discount or excess allowance, whether in the form of 
money or otherwise, nor shall a member of the industry secretly 
offer or extend to any customer any special service or privilege not 
extended to all customers of the same class, for the purpose of in- 
fluencing a sale. 

Rule 6. No member of the industry shall publish advertising 
(whether printed, radio, display or of any other nature), which is 
misleading or inaccurate in any material particular, nor shall any 
member in any way misrepresent any goods (including but without 
limitation its use. trade-mark, ^racle, 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 7. No member of the industry shall misbrand or mislabel 
any of his products. 

Rule 8. No emploj'er shall permit any employee to share his 
commission, or to give any part of it or any gratuity to any pur- 
chaser of any product of this industry. 

Article VIII — Selling Price 

No member of the Industry shall sell any industry product, at a 
price below his indi\adual cost except as hereinafter provided : 

(a) Any member of the Industry may sell at less than his own cost 
only in the following bona fide transactions: (1) Products of the 
industry sold as bona fide clearance, if advertised, marked and sold 
as such; (2) Imperfect or actually damaged products of the indus- 
try, if advertised, marked and sold as such; (3) Products of the 
industry sold upon complete and final liquidation of any business: 
(4) To meet the competition of a member of the industry whose cost 
under this Code are lower. Cost for the purpose of this provision, 
shall be determined in accordance with the principles enumerated in 



262 

the standard cost system formulated by the Code Authority and ap- 
proved by the Administrator. 

Any sales below cost made pursuant to the above provisions must 
be immediately reported to the Code Authority togetiier with copies 
of the invoices. 

(b) When the Administrator determines that destructive price 
cutting has caused an emergency in the industry such as to render 
ineffective or seriously to endanger the maintenance of the provisions 
of this Code, the Code Authority may cause an impartial agency 
to investigate costs in the industry and to determine the lowest reason- 
able cost of the product affected by such destructive practice. Such 
determination shall exclude all forms of return on capital investment 
and any extraordinary or inflationary cost elements and shall be in 
all respects subject to such rules and regulations as may be issued 
by the Administrator and to his approval or modification after such 
notice and opportunity to be heard as he may prescribe. The Code 
Authority or the Administrator may, upon its or his own initiative 
or upon the request of any interested party, from time to time, cause 
such determinations to be reviewed or reconsidered and appropriate 
action taken. During any such emergency, any sale below the lowest 
reasonable cost of the particular product as determined pursuant to 
this sub-section shall be deemed destructive price cutting, unless 
justified by notification to the Code Authority as a necessary means 
of disposal of (1) dropped lines or seconds, (2) imperfect or 
actually damaged products, or (3) products sold upon complete 
liquidation of the business of a member of the Industry. 

Article IX 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President in accordance with the 
provisions in Subsection (b) of Section 10 of Title I of the Act from 
time to time to cancel or modify any order, approval, license, rule, 
or regulation issued under said Act and specifically, but without 
limitation to the right of the President to cancel or modify his ap- 
proval of this Code or 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, based upon application 
to the Administrator by the Code Authority; and after such notice 
and hearing as he shall specify, such modification shall become effec- 
tive as part of this Code on the approval of the Administrator. 

Akticle X — REroRTS 

In addition to information required to be submitted to this Code 
Authority, all or any of the persons subject to such Code, shall fur- 
nish such statistical information as the Administrator may deem nec- 
essary 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 obli- 
gation to furnish reports to Government agencies. 



263 

Article XI 

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, oppress, or discriminate against small enter- 
prises. 

Article XII 

This Code shall become effective on the 10th day after its approval , 
by the President. 



Approved Code No. 435. 
Registry No. 1129-1-09. 



O 



Approved Code No. 436 
CODE OF FAIR COMPETITION 

FOR THE 

FUR MANUFACTURING INDUSTRY 
As Approved on May 19, 1934 



ORDER 



Code of Fair Competition for the Fur Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I oi the National Industrial 
Recovery Act, approved June IG, 1933, for approval of a Code of 
Fair Competition for the Fur Manufacturing Industry, and hearings 
having been duly held thereon and the annexed report of said Code 
containing findings with respect thereto, having been made and 
directed to the President. 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
l^ursuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. G543-A, dated December 30, 
1933, and otherwise ; do hereby incorporate by reference said annexed 
report and do find that said Code complies in all respects with the 
pertinent provisions and will promote the policy and purposes of 
•said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved, subject, however, to the 
following conditions : 

(1) That any member of the Industry may petition to the Ad- 
ministrator for a stay of the application of the provisions of Sec- 
tions 2, 3, 4, or 5, or any portion thereof of Article IV of said Code, 
insofar as such provisions may apply to such member of the Industry, 
and the Administrator may, should it appear that justice so requires 
to relieve such member of undue or unusual hardship imposed upon 
such member by virtue of the said provisions, grant sucli a stay, 
pending approval of the recommendations of the Special Commis- 
sion, created in Section 7 of Article IV of the Code, and upon such 
terms and conditions as the Administrator shall prescribe. Upon 
the issuance of an order approving the recommendations of the Spe- 
cial Commission regarding the wages to be pkid by the members of 
tlie Industry in the area or locality in which the petitioning member 
operates, any stay that may have theretofore been granted such 
member, shall forthwith terminate. 

60675° 544-118 34 (2G5) 



266 

(2) That the provisions of Sedition 13, Section 14, and Section 21 
of Article VIII be and are hereby stayed pending further study and 
investigation of the probable effects of such provisions on the estab- 
lished practices and marketing needs of the Industry, and until the 
approval bv me of recommendations of the Code Authority based 
upon such investigation, and subject to my further order. 

Hugh S. Johnson, 
Admirdstrator for Industrial Recovery. 
Approval recommended : 
Sol A. Rosenblatt, 

Divimon Administrator. 

Washington, D.C, 

May 19, 193^. 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report of the hearing of the Code of Fair Competi- 
tion for the Fur ISIanufacturing Industry conducted in Washington 
on December 29th, 1933. Post Hearing Conferences were also held 
on January 13, January 15, and March 7, 1934. 

HOUR PROVTSIONS OF THE CODE 

The Code establishes a maximum work week of thirty-five hours, 
with regulative provisions for a limited amount of overtime for 
employees engaged in the manufacture, production, remodelling and 
repair of fur articles. Members of shipping crews and persons em- 
ployed in clerical and office work, except managers and executives 
earning in excess of thirty-five ($35.00) dollars per week, are limited 
to forty hours. Members of shipping crews are permitted to work 
six hours of over-time per week during a maximum of five weeks per 
year, provided that time and one-third is paid for any and all such 
over-time work. 

The standard work week for about 90% of the Industry has been 
forty hours since 1926. The hour provisions of this Code will in- 
crease employment by approximately 12.5%. Shortening of the 
hours of work as well as the restriction of over-time will also have 
the effect of increasing the duration of the season of employment. 
It is recognized that by no means all of the unemployment in the 
Industry will be absorbed by the thirty-fi^ve hour week. A condition 
exists, however, whereby there is a great surplus of available labor 
in New York, the princii:)al market of the Industry, and a real 
scarcity of labor in the out of town markets. To so curtail the hours 
as to absorb the unemployment in the New York market would place 
the out of town markets at a serious disadvantage. It was necessary 
to strike an appropriate mesne between the necessities of the New 
York market and all of the other markets of the country. It should 
be stre-ssed, however, that the thirty-five hour week established by 
this Code will not sufficiently absorb the unemplo3'ment in the In- 
dustry and that as soon as possible, these hours should be further 
reduced. 

WAGE PKOVISIONS OF THE CODE 

The Code establishes a basic minimum wage of forty cents per 
hour for all employees in the Industry. IMinima are also established 
for the more sliilled classes of employees. Classified wage schedules 
are eminently of necessit}^ in this Code. The Industry has become 
accustomed to such scliedules through a long history of collective 
labor agreements, and the purpose or the Act to establish conditions 

(267) 



268 

of Fair Competition conkl not be achieved unless siicli classified wage 
rates were included in the Code. The usual opposition to classified 
raters has been absent in this case. The Industry unanimously agreed 
that such were necessary, the only disagreement arising as to the 
differentials to be established between the various markets. Many 
conferences were devoted to this latter subject and much data was 
submitted. It became apparent, however, that the appropriate differ- 
entials could not be worked out by means of negotiation and could 
only be arrived at after an exhaustive survey of the various markets. 
Consequently it Avas agi'eed that the Administration create arbitrary 
differentials between the various markets and that the Code set up a 
special commission to be appointed by the Administrator, for the 
purpose of conducting such a study and of reporting to the Adminis- 
trator on or before July 1st, 1934, with its recommendations a^ to 
appropriate differentials. 

If it should appear that these wage scales impose an undue and 
unusual hardship upon any individual or upon any market prior to 
the date that the recommendations made iDy the commission have 
been reported and embodied in the Code in the form of amendments, 
such individual or such market may petition to the Administrator 
for relief. 

OTHER LABOR PROVISIONS 

The Code provides that no person under eighteen years of age shall 
be employed in the actual manufacture of fur articles and that no 
other person under sixteen years of age shall be employed in the 
Industry, Inside contracting is categorically prohibited and outside 
contracting is placed under stringent regulations. The contracting 
svstem of procluction is much less developed in the Fur Industry 
tnan in most other branches of the Needle Industry. It has never 
gained much foothold here, partly because of the nature of the In- 
dustry, but principalh^ because of the objection of both labor and 
industry. Outside contracting has been prohibited by the New York 
Labor Agreements for a number of years. Both industry and labor 
proposed to prohibit categorically the contracting S3^stetm of produc- 
tion. It is felt, however, that such a prohibition might be unwise 
and that for a limited time, at least, an effort be made to elimi- 
nate the evils of the system, rather than eliminate the system itseli. 
Should it subsequently be found that control of outside contractors 
is impossible further and more drastic steps may be taken. 

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 Recoveiy 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 



269 

under adequate governmental sanctions and supervision, by eliminat- 
ing^ unfair competitive practice, b}' promoting the fullest possible 
utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tem- 
porarilj' required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, bj^ 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 industn\ 

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

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

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

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

For these reasons the Code has been approved. 
Respectfully, 

Hugh S. JoHNsOiSr, 

A dviinktrator. 
May 19, 1934. 



CODE OF FAIR COMPETITION FOR THE FUR MANU- 
FACTURING INDUSTRY 

Article I — Pubfoses 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Code of 
Fair Competition for the Fur Manufacturing Industry, and shall be 
the standard of fair competition for this Industry and shall be 
binding upon every member thereof. 

Article II — Definitions 

1. The terms " Fur Manufacturing Industry " or " Industry " as 
used herein mean and include the manufacture, production, repair, 
and remodeling of fur articles, and the sale thereof by manufac- 
turers and/or producers, or by any firm, corporation or other form 
of enterprise totally or partly owned and/or directlj or indirectly 
controlled by any manufacturer or producer of said fur articles, 
whether such sales are made directly by said manufacturer or pro- 
ducer or through any sales agency, and such related branches or 
subdivisions as may from time to time be included under the pro- 
visions of this Code. Said terms do not include, however, the man- 
ufacture and sale by retailers of custom made fur articles manu- 
factured to the order and specifications of the consumer and sold 
directly to the consumer, nor the repair or remodeling of fur articles 
by retailers directly for the consumer; nor do said terms include 
the sale of fur articles by wholesale fur distributors engaged ex- 
clusively in wholesale business in no way connected directly or indi- 
rectly with any manufacturer or producer of fur articles. 

2. The term " fur articles " as used herein means and includes fur 
coats, fur scarfs, fur trimmings and kindred articles made from furs 
and skins. 

3. The term " employee " as used herein means and includes any 
person engaged in any phase of the Industry, in any capacity, re- 
ceiving compensation for his services, irrespective of the nature or 
method of payment of such compensation, including members of a 
co-partnership or a firm or an officer, director or stockholder of a 
corporation doing such work. 

4. The teiTO " employer " as used herein means and includes anyone 
by M'hom any such employee is compensated or employed. 

5. The term " member of the Industry " as used herein means and 
includes any person, firm, co-partnership or corporation, or other 
form of enterprise exclusively or in part engaged in the Indus- 
try, either as employer or on his, their or its own behalf, and 
including without limitation, any selling organisation owned or 
controlled by anyone engaged in tlie Industry. 

(270) 



271 

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

Artictje III — Hours 

1. Except as hereinafter provided, no employee shall be permitted 
to -svork in excess of thirty-five (35) hours in any one (1) week, nor 
in excess of seven (7) hours in any working day. 

2. Except as hereinafter provided, no overtime whatsoever shall 
bo permitted in the manufacture, production, remodeling, or repair- 
ing of fur articles. Any member of the Industry may apply to the 
Regional Industrial Relations Committee for the Region in which 
such member operates, or, if no Regional Industrial Relations com- 
mittee exists in such Region, to the Industrial Relations Committee 
of the Code Authority, for certification of compliance with all rules 
and regulations governing the need for the employment of emergency 
or over time workers due to shortage of workers. Upon such certi- 
fication of compliance, and upon favorable recommendation of such 
Industrial Relations Committee, the Code Authority may, subject 
to the disapproval of the Administrator, permit employment for 
overtime work. In no event, however, shall any employee be per- 
mitted to work in excess of ten (10) hours per week overtime, nor 
shall any overtime be permitted during more than eight (8) weeks 
in any calendar year, or in any market or locality in which there 
does not exist an actual shortage of available workers. Rates of pay 
for such overtime work as may be permitted, shall be not less than 
one and one-half (II/2) times the normal rate of pay. Subject to 
review by the Administrator, the Code Authority may prescribe 
additional rules and regulations concerning overtime employment. 

3. No employee engaged in the manufacture, production, repair- 
ing and/or remodeling of fur articles shall be permitted to work 
on any Saturday or Sunday, nor shall any employee be permitted 
to perform smj such work before eight thirty (8:30) A.M., nor 
after four thirty (4:30) P.M., which is hereby termed a working 
day. In the event, however, that permission is grant<}d a member 
of the Industry for overtime employment, in accordance with the 
provisions of Section 2 of this Article, employees may be permitted 
to work after four thirty (4:30) P.M. 

4. The Code Authority with the approval of the Administrator 
may establish such shorter maximum work week than the foregoing 
as may be required to further effectuate the purposes of the Act. 

5. No person employed in clerical or office work, unless he is em- 
ployed in a managerial or executive capacity and earns not less than 
thirty-five dollars ($35.00) per week shall be permitted to work in 
excess of forty (40) hours in any one (1) week, or in excess of eight 
(8) hours in any twenty-four (24) hour period. 

G. Members of shipping crews shall not be permitted to work in 
excess of forty (40) hours in any one (1) week nor in excess of 
eight (8)' hours in any twenty-four (24) hour period, except that 
such employees may be permitted to work forty-six (46) hours per 
week during a maximum of five (5) weeks in any calendar year, 

60075° 544-11? 



272 



Erovided that for any and all such work in excess of the forty (40 
our week, such employee shall be paid at not less than one an 
one- third (1%) times the hourly rate payable for the basic forty 
(40) hour week. 

7. No member of the Industry shall knowingly permit any em- 
ployee to work for any time which when added to the time spent at 
work for another member or members of the Industry exceeds the 
maximum j^ermitted herein. 

8. The provisions of this Article shall also apply to all employers 
insofar as they themselves perform the work of craftsmen. 

9. The provisions of this Article shall not apply to outside sales- 
men. 

10. Each member of the Industry shall administer work in his 
charge so as to provide the maximum continuity of employment 
practicable for his personnel. The Code Authority shall submit to 
the Administrator, as hereinafter provided, a plan for the regula- 
tion and stabilization of employment in this Industry. 

Article IV ^ — Wages 

1. Except as hereinafter provided, no employee shall be paid at 
less than the rate of forty cents (40^) per hour. 

2. No employee engaged in the crafts enumerated below and 
employed in areas "A" or " B ", as hereinafter defined, shall be paid 
at less than the following minimum rates : 

Minimnim rate per week of thirty-five (35) hours 



Cutters : 

First Class $50. 60 

Second Class 44.00 

Operators : 

First Class 41.00 

Second Class 35.00 



Nailers : 

First Class $39.60 

Second Class 33.00 

Finishers : 

First Class 88.50 

Second Class 30.80 



3. No employee engaged in the crafts enumerated below and em- 
ployed in area " C ", as hereinafter defined, shall be paid at less than 
the following minimum rates : 

Minvnmm rate per week of thirtif-five {35) hours 



Cutters : 

First Class $45.50 

Second Class 39.60 

Operators : 

First Class 87.60 

Second Class 81.70 



Nailers : 

First Class $35.65 

Second Class 30.00 

Finishers : 

First Class 34.65 

Second Class 27.70 



4. No employee engaged in the crafts enumerated below and 
employed in area " D ". as hereinafter defined, shall be paid at less 
than the following minimum rates : 

Minimum rate per week of thirty-five {35) hours 



Cutters : 

First Class $43.00 

Second Class 37. 40 

Operators : 

First Class 35. 50 

Second Class 30. 00 



Nailers: 

First Class $33. 70 

Second Class l 26.40 

Finishers : 

First Class 32.70 

Second Class 26. 20 



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



273 

5. No emploj^ee engaged in the crafts enumerated below and em- 
ploj^ed in area " E ", as hereinafter defined, shall be paid at less than 
the f ollowino: minimum rates : 



Minimum rate per tvcclc of thirty-five (35) hours 



Cutters : 

First Class $40. 50 

Second Class 35. 20 

Operators : 

First Class 33.45 

Second Class 28. 20 



Nailers : 

First aass $31. GO 

Second Class 26. 70 

Finishers : 

First Class 30.80 

Second Class 24. 60 

6. For the purposes of tliis Code the United States shall be divided 
into five (5) areas, as follows: 

(a) Area "A" shall include the States of New York, Connecticut, 
Massachusetts, Rhode Island, Maine, New Hampshire, Vermont, 
New Jersey, Penn.s3dvania, Delaware, Maryland, and the District of 
Columbia. 

(b) Area " B " shall include the State of Illinois and the City of 
St. Louis, Missouri. 

(c) Area " C " shall include the States of Wisconsin, Indiana. 
Ohio, and that portion of the State of Missouri outside the City oi 
St. Louis. . 

(d) Area " D " shall include the States of Michigan, Minnesota, 
Iowa and California. 

(e) Area '* E " shall include all other places in which this Code 
is operative. 

7. The differentials in the basic rates for the respective areas as 
established in Sections 2, 3, 4, and 5 of this Ai'ticle, as well as the 
definition of the various areas as established in Section 6 of this 
Article are subject to modification and revision by the Administrator 
on the recommendation of the Special Commission hereinafter 
constituted. 

On or before the effective date of this Code, the Administrator 
shall appoint a Special Commission which shall undertake a study 
and investigation of the various markets and areas of the Industry 
and shall, if nec-essary^, conduct hearings in such various markets 
and areas for the purpose of determining the extent to wliich the 
provisions of this Article, and, in particular, the extent to which the 
differentials herein established, tend to promote conditions of fair 
com-petition between the various markets and areas of the Industry. 
Said Special Commission on the basis of such study and investiga- 
tion shall have power to recommend to the Administrator any modi- 
fication of the provisions of tliis Article which it may deem necessary 
to promote conditions of fair competition, including recommenda- 
tions for the modification of the definitions of the 'respective area^, 
recommendations for the creation of new areas, and recommenda- 
tions for a modification, change, increase or decrease of the differ- 
entials between the respective areas. Said Special Commission shall 
report to the Administrator with its recommendations, as herein- 
above set forth, on or before July 1, 1934, and any and all of such 
recommendations upon approval of the Administrator shall become 
effective as part of this Code. 

Said Special Commission shall also have such other and further 
duties and be vested with such other and further powers as the Ad- 



274 

ministrator may from time to time delegate to it, and any such fur- 
ther recommendations, upon the approval of the Administrator, 
shall also become effective as part of this Code. 

8. The Code Authority, with the approval of the Administrator, 
shall determine and designate which type of work in the respective 
crafts shall be designated as " first-class " or " second-class." The 
basis of such designation shall be primarily the skill required and 
the type of skins and work of the respective craftsmen. 

9. In the event that any of the provisions of this Article impose 
an undue and unusual hardship on any employer or on any market, 
such employer or such market may petition the Administrator for 
relief. The Administrator upon receipt of such petition shall con- 
duct such hearings thereon as he may deem proper before granting 
relief. 

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

11. 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 Labor, a certificate authorizing such 
person's employment at such wages and for such hours as shall be 
stated in the certificate. Such authority shall be guided by the in- 
structions of the United States Department of Labor in issuing 
certificates to such persons. Each employer shall file monthly with 
the Code Authority a list of all such persons employed by him, 
showing the wages paid to, and the maximum hours of work for 
such employee. 

12. This Article establishes minimum rates of pay which shall 
apply irrespective of whether or not an employee is compensated on 
a time rate or other basis, and the Code Authority shall, at times 
specified by the Administrator, investigate and report on the effect 
of such rates of pay on fair competition in the Industry, and the 
continuance of such rates of pay, as minimum rates of pay only. 

13. No employee shall be compensated on a piece work basis, and 
employees working less than the basic thirty-five (35) hour week 
shall be paid proportionately no less than the minimum rates pro- 
vided herein for the basic thirty-five (35) hour week. 

14. No employer shall make any reduction in the full time weekly 
earnings of anj employee whose normal full time weekly hours are 
reduced by twentj^ percent (20%), or less, below those existing for 
the four weeks ending July — , 1933. When the normal full time 
weekly hours of an employee are reduced by more than said percent, 
the full time weekly wage of such employee shall not be reduced by 
more than one half of the percentage of hour reductions above said 
percent. In no event shall hourly rates of pay be reduced, irrespec- 
tive of whether compensation is actually paid on an hourly, weekly, 
or other basis, nor shall any wages be at less than the minimum rates 
herein provided. 

Within thirty (30) days of the effective date hereof, (unless such 
adjustment has been made theretofore) each employer shall adjust 
the schedule of wages of his employees in such an equitable manner 
as will conform to the provisions hereinabove set forth, and still 



275 

preserve wage differentials reasonably proportionate to those in 
effect prior to the effective date of this Code. 

Articlb V — General. Labor Provisions 

1. No person under sixteen (16) years of age shall be employed in 
the Industry and no person under eighteen (18) years of age shall 
bo employed in any manufacturing operations on fur articles. In 
the event of a claim of alleged violation of this section, an employer 
shall be deemed to have complied with the provisions of this section 
if he shall have on file and shall submit a certificate of age issued 
by the duly authorized department of the State in which the em- 
ployer operates, showing the age of the employee to be no less than 
the age required by this section. 

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

3. No employee and no one seeking employment shall be 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 so as to defeat the 
purposes or provisions of the Act or of this Code. 

6. Every employer shall provide for the safety and health of his 
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 this Code, which standards, upon his approval, shall 
become effective as part of this Code. 

7. No provision in this Code shall suj^ersede 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, or 
sanitarj' regulations, or insurance, or fire protection, or general 
working conditions, than are imposed by this Code. 

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, and otherwise comply w^ith all posting rules and regu- 
lations which the Administrator may issue from time to time. 

9. No member of the Industry shall manufacture or produce or 
cause to be manufactured or produced any fur articles under condi- 
tions commonly known as " inside contracting." 

10. The Code Authority subject to the approval of the Adminis- 
trator shall, within thirty (30) days of the effective date of this Code, 
and, if necessar}^, from time to time thereafter, issue rules and regu- 
lations concerning the manufacture and production of fur articles 
and/or any part thereof that may be necessary or required to finish 



276 

or complete any fur articles under conditions commonly known as 
" outside contracting ", and after such approval by the Administrator 
no member of the Industry shall manufacture and/or produce or 
cause to be manufactured and/or produced any fur articles and/or 
any part thereof that may be necessary or required to finish or com- 
plete an}' fur articles under such conditions as " outside contracting ", 
except by full compliance with such rules and regulations, nor shall 
any member of the Industry manufacture or produce or cause to be 
manufactured or produced any fur articles and/or any part thereof 
that may be necessary or required to finish or complete an}^ fur 
articles under such conditions of " outside contracting " unless the 
" outside contractor " shall comply in all respects with all such rules 
and regulations. 

Without limitation, such rules and regulations shall include rules 
and regulations concerning (a) registration of contractors and those 
employing contractors ; (b) uniform written contracts which shall be 
used in all relationships between contractors and those emplo^dng 
contractors; (c) the filing of all such written contracts with the Code 
Authority; (d) reports by contractors and those employing contrac- 
tors; and (e) responsibilities of contractors and those employing 
contractors for full compliance with the provisions of this Code and 
all amendments when made thereto. 

It is expressly recognized that " outside contractors " are members 
of the Industry and that they shall comply in all respects with all 
the provisions of this Code and all amendments when made thereto. 

For the purposes of this Code, the term " outside contractor " shall 
mean and include any person employing manufacturing labor and 
operating in a regular place of business who manufactures or pro- 
duces in whole or in part for the account of another any fur articles 
and/or any part thereof that may be necessary to finish or complete 
any fur articles. 

No member of the Industry' shall employ any " outside contrac- 
tors " unless such contractor be an employer of manufacturing 
labor and operating in a regular placo of business. 

The provisions of this Section shall remain in full force and effect 
for six (G) months from the effective date of this Code. The Spe- 
cial Commission established in Section 7 of Article IV of this Code 
shall, in addition to its other duties, also study the contracting prob- 
lems of the Industry', and, should it find that the interests of the 
Industry will best be served by modification, amendment, or con- 
tinuation of the provisions of this section, it sliall make to the 
Administrator such recommendations thereon as it may deem neces- 
sary and such recommendations, upon the approval of the Admin- 
istrator, after notice to all parties interested and such hearings as 
the Administrator may deem necessary, shall become effective as 
a part of this Code. 

11. No manufacturing or production work shall be contracted for 
performance in the home of an employee. 

12. Any employer who at any time shall manufacture any fur 
article or articles shall be bound by all the provisions of this Code 
as to all employees engaged, in whole or in part, in such manufac- 
ture. In case any employee shall be engaged partly in such manu- 
facture and partly in manufacture of goods of another character, 



277 

this Code shall apply to such portion of such employee's time as 
is applied to the manufacture oi articles subject to this Code. 

Article VI — ^Administration 

1. A Code Authority is hereby constituted to cooperate with the 
Administrator in the administration of this Code. The Industry 
members of said Code Authority shall be selected as hereinafter set 
forth : 

(a) Two (2) members to represent the Associated Fur Coat and 
Trimming Manufacturers, Inc. designated by the Board of Directors 
of said association. 

(b) Two (2) members to represent the New York Fur Trimming 
Manufacturers Association, designated by the Board of Directors 
of said Association. 

(c) Two (2) members to represent the United Fur Manufacturers 
Association, Inc. designated by the Board of Directors of said 
Association. 

(d) One (1) member to represent the Chicago Fur Trimming 
Manufacturers Association designated by the Board of Directors 
of said Association. 

(e) One (1) member shall be elected by the members of the In- 
dustry unalEfiliated with any of the Associations hereinabove enumer- 
ated, and located in Area "A" as defined in Section 6 (a) of Article 
IV of tliis Code. Said election shall be conducted under the super- 
vision of the Administrator or his authorized representative. 

(f ) One (1) member shall be elected by members of the industry 
unaffiliated with any of the Associations hereinabove enumerated, 
and located in any other part of the United States outside of Area 
"A" as defined in Section 6 (a) of Article IV of this Code. Said 
election shall be conducted under the supervision of the Administra- 
tor or his authorized representative. 

(g) Three (3) Administration members without vote shall bo 
appointed by the Administrator, two of which may be appointed 
upon the nomination of the Labor Advisory Board of the National 
Recovery Administration. 

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, 
by-laws, regidations, 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. 

3. In order that the Code Authority shall at all times be truly 
representative of the Industry and in otlier respects comply with the 
provisions of the Act, the Administrator may prescribe such hear- 
ings as he may deem proper, and may require an appropriate modi- 
fication in the method of selection of the Code Authority. 

4. Nothing contained in this Code shall constitute the members of 
the Code Authority partners for any purpose. Nor shall any member 
of the Code Authority be liable in any manner to any one for any 
act of any other member, officer, agent or employee of the Code 



278 

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 malfeasance or nonfeasance. 

5. If the Administrator shall at any time 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 the Code Authority or agency pending final action which shall 
not be effective unless the Adminis-trator approves or unless he shall 
fail to disapprove after thirty days' notice to him of intention to 
proceed with such action in its original or modified form. 

6. Subject to such rules and regulations as may be issued by the 
Administrator, the Code Authority shall have the following powers 
and duties, in addition to those authorized by other provisions of 
the Code. 

(a) To insure the execution of the provisions of this Code and 
to 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 this Code, and to 
submit the same to the Administrator for his approval, together with 
true copies of any amendments or additions when made thereto, 
minutes of meetings when held, and such other information as to its 
activities as the Administrator may deem necessary to effect the 
purposes of the Act. 

(c) To obtain from the members of the industry such information 
and reports as are required for the administration of this Code. In 
addition to information required to be submitted to the Code Au- 
thority, members of the Industry shall furnish such statistical infor- 
mation 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 ; provided that nothing in this Code shall relieve 
any member of the industry of any existing obligations to furnish 
reports to any government agency. No individual report shall be 
disclosed to any other member of the industry or any other party ex- 
cept to such governmental agencies as may be directed by the 
Administrator. 

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

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

(f) (1) It being found necessary, in order to support the admin- 
istration of this Code and to maintain the standards of fair competi- 
tion established by this Code and to effectuate the policy of the Act, 
the Code Authority is authorized, subject to the approval of the 
Administrator : 



279 

(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes and to meet such obligations out 
of ninds which may be raised as hereinafter provided and which 
shall be held in trust for the purposes of the Code; 

(b) To submit to the Administrator for his approval, subject to 
sudi notice and opportunit}- to be heard as he may deem necessary, 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the funds necessary 
to support such budget shall be contributed by members of the 
Industry ; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and secure equitable con- 
tribution as above set forth by all such members of the Industry, 
and to that end, if necessary, to institute legal proceedings therefor 
in its own name. 

(2) Each member of the Industry shall be liable for his or its 
equitable contribution to the expenses of the maintenance of the 
Code Authority as hereinabove provided. Only members of the In- 
dustry complying with the Code and contributing to the expenses of 
its administration as provided in Section 1 hereof shall be entitled 
to participate in the selection of the m.embers of the Code Authority 
or to receive the benefit of its voluntary activities or to make use of 
any emblem or insignia of the National Recovery Administration. 

\g) To cooperate with the Administrator in regulating the use 
of any emblem or insignia of the National Recovery Administration 
solely by those members of the Industry who have absented to, and 
are complying wath, this Code. 

(h) To establish or designate, subject to the approval of the Ad- 
ministrator, such agencies on planning and fair practice as may be 
necessary, which agencies shall cooperate with the Code Authority 
in developing fair trade practices and industrial planning, including 
the regularization and stabilization of employment for tlie industry. 

(i) To issue such further rules and regidations necessary to estab- 
lish further fair trade practices, as may be recommended by the 
agency defined above, and as may be approved by the Administrator. 

(j^ To initiate, consider, and make recommendations for the modi- 
fication or amendment of thi^ Code, which modifications or amend- 
ments shall become effective as part hereof upon approval by the 
Administrator after such notice as he may specify. 

(k) 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 Administrator, 
full details concerning them shall be made available to all members 
of the Industry. Thereafter all members shall determine and /or 
estimate costs in accordance with the principles of such methods. 

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



280 

(m) To recommend to the Administrator provisions for Unem- 
ploj'ment Insurance Fund and regulations to govern the adminis- 
tration of said Fund. 

(n) To create, subject to the approval of the Administrator, 
Regional Fur Manufacturing Code Authorities to assist in the 
administering of this Code. 

(o) To provide appropriate facilities for arbitration, and, subject 
to the approval of the Administrator, to prescribe rules of procedure 
and rules to effect compliance with awards and determinations. 

(p) 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 formu- 
lating fair trade practices to govern the relationships between em- 
ployees under this Code and employers under such other codes to 
the end that such fair trade practices may be proposed to the 
Administrator as amendments to this Code and such other codes. 

7. There shall be established an Industrial Relations Committee 
for the industry, which shall consist of an equal number of repre- 
sentatives of employers and employees and an impartial chairman. 
The Administrator shall appoint such impartial chairman upon the 
failure of the committee to select one by agreement. If no truly 
representative labor organization exists, the employee members of 
such board may be nominated by the Labor Advisory Board of the 
N.R.A. and appointed by the Administrator. The employer repre- 
sentatives shall be chosen by the Code Authority. Such committee 
shall deal with complaints and disputes relating to labor in accord- 
ance with rules and regulations issued by the Administrator. The 
Industrial Relations Committee may establish such divisional, re- 
gional, and local industrial adjustment agencies as it may deem de- 
sirable, each of which shall be constituted in like manner as the 
Industrial Relations Committee. 

ArticliE VII — N.RA. 

1. All fur articles produced, manufactured repaired, or remodeled, 
subject to the provisions of this Code shall bear an N.R.A. label, 
or an authorized substitute therefor, to symbolize to purchasers 
of said fur articles the conditions under which they have been 
manufactured, produced, repaired or remodeled. The labels to be 
borne by fur articles which have been repaired or remodeled shall 
be designed in such a manner as to serve both as a receipt to the 
customer and as an order ticket for the member of the Industry. 

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

3. Each label shall bear a registration number especially assigned 
to each member of the industry by the Code Authoritj'^, and shall 
remain attached to all such fur articles when sold. 

4. Any and all members of the industry may apply to the Code 
Authority for a permit to purchase and use such N.R.A. labels, which 
permit shall be granted to them, but only, if, and so long as, they 
comply with this Code. The Code Authority shall not refuse the 



281 

issuance of labels to any member of the industry on the ground of 
noncompliance by such member with this Code or with valid rules 
and regulations of the Code Authority, unless said Code Authority 
is, at the time of such refusal, prepared to certify to the Adminis- 
trator that noncompliance by such member with this Code, and/or 
with such valid rules and regulations has been established to the 
satisfaction of the Code Authority after a hearing or notice, and 
due opportunity has been given to the alleged violator to be heard. 
In the event the Code Authority so refuses the issuance of such labels, 
a complete file showing the alleged noncompliance by such member 
of the industry shall be certified not later than the day following 
said refusal, to the Administrator, which refusal of the Code Au- 
thority shall be subject to the approval of or modification of the 
Administrator. The Administrator shall, if necessary, certify said 
alleged violation for action, to the National Compliance Director 
or such other Governmental or Administrative Agency as the 
Administrator may direct. 

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

6. The charge for such labels by the Code Authority shall at all 
times be subject to supervision and orders of the Administrator. 

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

8. No member of the industry shall purchase, sell or exchange 
any article manufactured under another Code of Fair Competition 
which requires such article to bear N.E.A. label unless such label has 
been attached to such Article. 

Article VIII - — Trade Practice Rules 

1. For all purpose-s of this Code the acts described in this article 
shall constitute unfair practices. Any member of the industry who 
shall, directly or indirectly, through any officer, employee, agent, or 
representative, knowingly engage in, use, employ, or permit to be 
employed, any of such unfair practices shall be guilty of a violation 
of the Code. 

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 goocfs (including, but without limitation, 
their use, trademark, grade, quality, quantity, origin, size, substance, 
character, nature, finish, material content or preparation) or credit 
terms, values, policies, services or tlie nature or form of the business 

■ See paragraph 2 (2) of order approving tbis Code. 



282 

conducted. The nature or form or character of the business con- 
ducted shall be conspicuously^ posted on his premises by each member 
of the industry. 

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

4. No member of the industry shall knowingly withhold from or 
insert in any quotation or invoice anj'^ statement that makes it in- 
accurate in any material particular. The Trade name, where it is 
not descriptive and not qualified b}'^ the true name of the skin shall 
be deemed inaccurate in a material particular. When the Trade 
name is not descriptive, the true name shall be printed on the ticket 
attached to the garment at the time of its sale. 

5. 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 brandy ^ade, quality, quantity, origin, 
size, substance, character, nature, fimsYi, material content or prepara- 
tion of such goods. 

6. No member of the industry shall publish advertising which re- 
fers inaccurately in any material particular to any competitors or 
their merchandise, prices, values, credit terms, policies or services. 

7. No member of the industiy shall defame a competitor by falsely 
imputing to him dishonorable conduct, inability to perform contracts, 

?uestionabie credit standing, or by other false representation, or by 
alsely disparaging the grade or quality of his goods. 

8. No member oi the industry shall publish or circulate unjustified 
or unwarranted threats of le^al proceedings wliich tend to harrass 
or have the effect of harrassmg competitors or intimidating their 
customers. 

9. No member of the Industry shall give, or permit to be given, or 
receive any secret payment or allowance of rebate, refund, commis- 
sion, credit or unearned discount, either in the form of money or 
otherwise, nor shall he secretly extend to any purchaser any special 
services or privileges not extended to all purchasers of the same class 
on like terms and conditions, nor shall ne give or receive any un- 
warranted or excessive allowance for any damages or allegedly 
damaged goods bought or sold by him. 

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

11. No member of the Industry shall give, permit to be given, or 
directly offer to give anything of value for the purpose of influencing 
or rewarding the action of any employee, agent, or representative or 
anotlier 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 prohioit 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. 

12. No member of the industry shall wilfully induce or attempt to 
induce the breach of existing contracts between competitors and 
their customers or sources of supply by any false or deceptive means ; 
nor shall any member of the industry interfere with or obstruct the 



283 

performance of such contractual duties or services by any such means, 
with the purpose and effect of hampering, injuring, or embarrassing 
competitors in their business. 

13. The maximum terms of sale for fur coats and fur scarfs at 
wholesale shall be as follows: 2%, ten days, end of month (E.O.M.), 
plus Manufacturer's Federal Excise Tax on the sale price of each 
article sold. No credit terms shall be granted for a period longer 
than four (4) months from date of shipment. All credits for a 
period in excess of ten days end of month shall be covered b}^ the pur- 
chaser giving his trade acceptance for the purcliase price bearing 
legal rate of interest from date of shipment. The Manufacturer's 
Federal Excise Tax on the sale price of each article shall be payable 
no later than the twenty-lifth day of the month following the date of 
shipment. 

14. The maximum terms of sale for fur trimmings at wholesale 
shall be as follows: net 10 daj^s E.O.M. plus Manufacturer's Federal 
Excise Tax on the sale price of each article sold. The Manufac- 
turer's Federal Excise Tax on the price of each article shall be pay- 
able no later than the twenty-fifth (25th) day of the month following 
the date of shipment. 

15. No member of the industr}^ or his agent shall ship or deliver 
any fur articles on what is known as " consignment " or " memoran- 
dum " arrangement, except that a member oi the industry may ship 
fur articles for selection or approval, upon condition that such fur 
articles be returned, or shipped for return, within not more than 
three (3) days from its receipt by the consignee. 

16. Except upon approval first obtained from the Code Authority, 
and in accordance with such rules and regulations as the Code Au- 
thority shall issue and the Administrator shall approve, and after 
such approval no member of the industry or his agent shall directly 
or indirectly: 

(a) Accept for credit the return of the whole or any part of mer- 
chandise, where the same has been selected and purchased by the 
customer or his agent from stock and shipped pursuant to written 
order. 

(b) Leave with any buying offices, samples of fur articles. 

(c) Accept and execute any orders placed by resident buyers, un- 
less such resident buyers are registered with the Code Authority, 
and comph^ with the above rules and regidations. 

(d) Give exhibitions or promote any " sales " or " style shows " 
with his ovrn fur articles, on the premises of a retailer or customer. 

(e) Give, furnish, lend, or vship any fur articles to any customer 
for the purpose of using the same as " show pieces " for window or 
other display, with the privilege to the customer of returning same. 

(f ) Accept the return of any fur coats and fur scarfs shipped to 
customers nor allow credit therefor, nor exchange the same where 
such articles have been shipped in accordance with specifications and 
in fidl compliaiice with a written order, and where such articles have 
been in the possession of the purchaser for more than five (5) days, 
unless such articles are returned because of latent defects not dis- 
coverable by reasonable inspection. 

(g) Accept the return of any fur trimmings shipped to customers 
nor allow credit therefor, nor exchange the same where such articles 
have been shipped in accordance with specifications and in full 



284 

compliance with a written order, and where such articles have been 
in the possession of the purchaser for more than two (2) days, 
unless such articles are returned because of latent defects not dis- 
coverable by reasonable inspection. 

(h) Deliver or permit to be delivered any fur articles to anyone 
unless a written receipt therefor is received from the customer or 
his agent. 

17. No member of the Industry shall sell or service any fur articles 
at a price less than his own individual cost as computed by the 
uniform cost sj'stem provided in Article VI, Section 6 (k) of this 
Code, except that a member of the Industry may meet the price 
competition of another member of the Industry whose costs as com- 
puted by said uniform cost system may be lower, and except that 
this provision shall not apply to seasonal clearance sales and sales 
of actually shopworn, defective or damaged goods. Such shop- 
worn, defective or damaged goods shall be plainly marked as such. 

18. No member of the Industry shall maintain for sale any stock 
of fur articles, with any resident commission salesman or employ 
any resident commission salesman, unless such salesman be registered 
by the member of the Industry with the Code Authorit}'^ and said 
salesman shall have agreed to comply with tlie regulations pertain- 
ing to resident commission salesmen issued and established by the 
Code Authority and approved by the Administrator. Such regula- 
tions shall include among other things: ^a) A standard or uniform 
contract of employment which shall specify in detail the terms and 
conditions under which such resident commission salesmen may bo 
employed; (b) The number of members of the Industry who may 
employ the same resident commission salesman at the same time; 
(c) That such resident salesmen shall sell or obtain orders only on 
non-conflicting and non-competing sample lines of fur articles, and 
shall not ship or deliver any fur articles on what is known as 
" memorandum " or " consignment " arrangements, and that such 
salesmen shall comply with all other provisions of this Code, relat- 
ing to the sale of fur articles by members of the Industry. 

The provisions of this section shall remain in full force and effect 
for one (1) year from the effective date of the Code. 

The Special Commission established in Section 7 of Article IV 
of this Code shall, in addition to its other duties, also study the 
marketing problems of the industry and should it find that the 
interests of the industry will best be served by modification, amend- 
ment or continuation of the provisions of this section, it shall make 
to the Administrator such recommendations thereon as it may deem 
necessary, and such recommendations, upon the approval of the 
Administrator, shall become effective as a part of this Code. 

19. No member of the industiy shall employ, execute orders for, 
or deal with any type of salesmen commonly known as " free lance " 
salesmen or '' roving commission salesmen " unless such salesmen be 
registered with the Code Authority and have agreed in writing to 
comply with such rules and regulations as the Code Authority, with 
the approval of the Administrator, may establish concerning the 
terms and conditions under which such class of salesmen may be 
employed, dealt with and compensated by the members of the 
industry. 



285 

20. Except as otherwise provided in this Article, no member of 
the industry shall sell fur articles through any salesmen except such 
salesmen as are in the exclusive employ of such member of the 
industry, unless such salesmen be registered with the Code Authority 
in accordance with regidations established by the Code Authority 
and approved by the Administrator. 

21. No member of the industry shall give any reward or pay any 
conunission to resident buyers for placing any orders to be executed 
by the seller. 

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 subsection (b) of Section 10 of the Act, from time to 
time to cancel or modify any order, approval, license, rule or regu- 
lation issued under Title I of said Act, and specifically, but without 
limitation, to the right of the President to cancel or modify his 
approval of this Code or any conditions imposed by him upon his 
approval thereof. 

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 President. 

Article X — Monopolies, Etc. 

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

Article XI — Price Increases 

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

Article XII — Effective Pate 

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



Apriroved Code No. 436. 
Registry No. 912-03. 



O 



Approved Code No. 437 
CODE OF FAIR COMPETITION 

FOR THE 

BICYCLE MANUFACTURING INDUSTRY 

As Approved on May 21, 1934 



ORDER 



Approm:ng Code of Fair Competition for the Bicycle 
IManufacturing 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 Bicycle 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 an- 
nexed report and do find that said Code complies in all respects with 
the pertinent provisions and will promote the policy and purposes 
of said Title of said Act; and do hereby order that said Code of 
Fair Competition be and it is hereby approved; provided, however, 
that the Code Authority for the Bicycle Manufacturing Industry 
shall, within sixty (60) days, report to me facts relative to the wage 
rates hereby established to the end that if it appears that the said 
wage rates do not contribute to the purchasing power of workers 
to the extent that might reasonably be expected there will be a 
reconsideration of said wage rates. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
K. M, Simpson, 

Division Administrator. 

Washington, D. C, 

May 21, 193^. 

60976* 544-122 34 (287) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The original Code of Fair Competition for the Bicycle 
Manufacturing Industry was submitted on August 3, 1933, by the 
Bicycle Manufacturers Association, an unincorporated membership 
society organized in 1910 representing in excess of 871/2% of the 
known members of Industry and 97% of the volume of production. 
Several revisions of the Code were made prior to the Public Hearing 
which was held on December 13th, 1933. The Code was revised 
during the recess of this hearing and submitted in its present form 
for approval. Every person who requested an appearance was 
properly heard in accordance with statutory and regulatory 
requirements. 

The Bicycle Industry is represented by eight members, seven of 
whom are members of the Bicycle Manufacturers Association. 
Their plants are all located east of the ]SIississippi River. The 
Industry manufactures and sells Bicycles and Bicycle parts. The 
manufacture of bicycle parts for sale to consumer is by no means 
an insignificant part of the Industry, the ratio of value of parts to 
the total value of bicycles and parts in 1929 being 40% . 

Because of the advent of other forms of transportation the popu- 
larity of the bicycle has suffered a great decline. In order to main- 
tain some semblance of popularity the Industry has made a consist- 
ent effort to meet the competition of other forms of transportation 
by reducing the price of its products. 

A review of the general economic tendencies of the Industry indi- 
cate that since 1914 the peak production of 486,177 bicycles was 
reached in 1923. From 1923 to 1932 the decline in production, 
except for 1929, has been consistent. It was during this period that 
the demand for the bicycle as a means of transportation became 
secondar}'^ to its demand as a plaything for children : 



Year 


Number of 
bicycles 


Average 
value of bi- 
cycle 


Year 


Number of 
bicycles 


Averaj^e 
value of bi- 
cycle 


1914 - 


299, 029 
470, 675 
216, 464 
4S6, 177 
303, 446 


$12. 57 
26.96 
28.73 
22.06 
23.17 


1927. 


255, 456 
307, 845 
260, 029 
205, 000 


$22.72 
20.03 


1919 


1929 


1921 


1931 


18.20 


1923 


1932 




1925 - 











An analysis of the employment data from a maximum of 1575 
workers in 1929 (indicates 100%) to the first quarter of 1933, indi- 

(288) 



289 

cates a decline of 47%. The subsequent recovery, however, brought 
employment in the third quai-ter of 1933 to 93% of tlie 1929 level. 



Year and quarter 


Number of 
factory 
workers 


Index (1929 
=100) 


Year and quarter 


Number of 
factory 
workers 


Index (1929 
= 100) 


1929 . ... 


1.575 
1.420 
1,200 
1,005 
1.010 


100.0 
90.1 
76.4 
64.0 
64.1 


1932-3d quarter 


946 
1,186 

840 
1.045 
1,465 


60 1 


1930 




75.8 


1931 


1933-lst quarter 


53 3 


1932-lst quarter 


2d quarter 


66.5 


2d quarter. 


3d quarter 


93 1 









The Industr}^ is a highly seasonal one due to the fact that bicycles 
are so largely used as Christmas presents for children. The peak 
of the Industry's production during the past five years, 1928 to 
1932, has come in October. There have been two low points, one 
in January, after which there has been a slight spring recovery, 
and one in June, after which the major jDroduction activity of the 
year has occurred. 

As shown in the following table, October total man-hours have 
been on the average 88% greater than June man-hours, while 
October emj^loyment has been 33% greater than that of June. The 
increase in hours per employee per week has been, on the average, 
40% from June to October. In 1933 the situation was strikingly 
different for, whereas total man-hours increased 70%, the increase 
in emploj^ment was nearly as great — 62% — and average hours per 
employee per week increased but 3%. It would appear, therefore, 
that the modified President's Reemployment Agreement, which per- 
mits a 48-hour maximum during the peak months of the year, had 
the effect of forcing the Industry to follow the alternative of em- 
ploying more workers to meet peak activity than normally would 
have been the case : 



Percentage change 



June to 
October 
1928-32 



June to 

October 

1933 



Total man-hours 

Number of wage earners 

Average hours per employee. 



The wages paid in the Industry have declined with the decreased 
demand for its product. The average hourly earnings in June 
1929 was 51.7^, in June 1933 it had decreased to ZT^/^^. In June 
1933 to October, during which the company adopted a proposed 
minimum wage scale, the average hourly wage scale rose to 44.3^. 

An analysis of the distribution of factory workers in the Bicycle 
Industrj^ by hourly earnings in 1933 indicates that the Industry has 
paid relatively low wages. 



290 



Earnings per hour 


Number 

of 
factory 
workers 


Percent- 
age of 
total 

number 


Earnings per hour 


Number 

of 
factory 
workers 


Percent- 
age of 
total 

number 


Under 15 cents 


4 
6 

32 
55 
97 


0.7 
1.1 
5.3 
9.3 
Ifi. 3 


50 cents to 54.9 cents 


40 

29 

18 

2 

1 


51 


15 cents to 19.9 cents.- 


55 cents to 59.9 cents 


20 cents to 24.9 cents 


60 cents to 69.9 cents 


3.5 


25 cents to 29.9 cents 


70 cents to 79.9 cents.. 


0.3 


30 cents to 34.9 cents -. 




0.2 






Total 




40 cents to 44.9 cents 


149 
90 


25.2 
15.1 


593 


100. 













Under the President's Reemplojinent Agreement the average of 
64 hours per week was reduced to 48 hours maximum which resulted 
in the spreading of some available work among the workers. With 
a maximum of 40 hours per week as outlined in the Code and with 
the minimum of 350 per hour and a provision for the adjustment 
of wages above the minimum should result in a further spreading 
of not only the available work among the workers but also an 
increased consumer purchasing power. 

ABTrca:.E I. Purpose. — States the purpose of the Code. 

Akticle II. De-fimtions. — Accurately defines specific terms appli- 
cable to the Bicycle Manufacturing Industry as used in this Code. 

Arttci.e III. Hours. — The maximum hours are limited to 40 hours 
per week for employees engaged in the processing of products and 
labor incident thereto, except that during thirteen weeks in the last 
six months of a calendar year in order to meet seasonal peak de- 
mands, emploA^ees may be pemiitted to work not more than 45 hourg 
per week and not more than 9 hours in any one day. Office, salaried 
and other emploj-ees not covered above who receive less than $35.00 
per week shall not be permitted to work in excess of an average of 
40 hours in any one week during any 5 week period and not to exceed 
48 hours in any one week. Watchmen shall be permitted to work not 
more than 56 hours in any one week. Employees engaged in an 
executive, managerial or supervisory capacity who receive not less 
than $35.00 per week, and those engaged in emergency repairs or 
maintenance where the safety of life or health or the protection of 
property necessitates longer hours, are not subject to any hourly 
limitations. No employee shall be permitted to work more than 
six days in any seven day period. 

Article IV. Wages. — The minimum wa^e for employees engaged 
in the processing of products or in any labor incident thereto is at 
the rate of 350 per hour for any pay period. Female employees 
shall be paid the same rate of pay as male employees for doing the 
same work or performing the same duties. No person employed in 
clerical or office work shall be paid less than at the rate of $15.00 per 
week, except that office boys and girls may be paid a minimum of 
80% of the established minimum for office employees. The estab- 
lished minimum rate of pay for work performed in any period shall 
apply irrespective of whether an employee is actually compensated 
on a time rate, piece work or other basis. Provision is also made 
for the employing of handicapped persons who shall be paid not 
less than 80% of the minimum wage scale. Provision is also made 
for the adjustment of wages above the minimum fixed in this Code 
if such has not been made since July 1st, 1933. 



291 

Article V. General Labor Provmons. — Provides that no employer 
shall employ any person under 16 years of age and that no person 
under IS years of age shall be employed at operations or occupations 
which are hazardous in nature or dangerous to health. This Article 
also sets forth the mandatory provision respecting the rights of 
employees to organize and bargain collectively. It also provides for 
matters having to do with reclassification of employees, standards 
for safety and health, the observance of State laws and the posting 
of labor provisions of this Code so that they are accessible to 
employees. 

Article VI. Adjninistration. — Establishes a Code Authority con- 
sisting of four members to be selected by a fair method of selection 
so as to be truly representative of the Industry subject to the 
approval of the Administrator. In addition to the four members 
named above there may be one or three representatives, without vote, 
and without expense to the Industry to be appointed by the Admin- 
istrator for such terms as he may specify. In addition to the 
organization of the Code Authority, the powers and duties thereof 
are also outlined in this Article. 

Article VII. Marketing arid Trade Practice Pules. — Sets forth 
Trade Practices for the Industry. 

Article VIII. Export Trade. — No provision of this Code relating 
to terms of selling, shipping, or marketing, shall apply to export 
trade or sales or shipments for export trade. 

Article IX. M odification. — This Code and all the provisions 
thereof are expressly made subject to the right of the President in 
accordance with Subsection (b) of Section 10 .of the Act, to cancel 
or modify any order, approval, license, rule or regulation issued 
under said Act. 

Article X. Monopolies. — 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. 

Artict^e XL Price Increases. — This Article indicates that the in- 
crease in selling price, so far as possible, will be limited to actual 
additional increases in seller's costs. 

Article XII. Effective Date. — This Code shall become effective 
beginning ten days after its approval by the Administrator. 

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

I find that : 

(a) 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- 



292 

tural products throiigli increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

(b) Said Industr}^ 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 limitation 
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub- 
section (b) of Section 10 thereof; and that the applicant association 
is an industrial association truly representative of the aforesaid 
Industry, and that said association imposes no inequitable restrictions 
on admission to membership therein. 

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

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

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

For these reasons, therefore, this Code has been approved. 
EespectfuUy, 

Hugh S. Johnson, 

Admjinistraior. 
Mat 21, 1934. 



CoDK OF Fair Competitkjn for the Bicycle Maxufacturino 

Industry 

Article I — Plrposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, this Code is estabiis^hed as a Code of Fair Competition 
for the Bicycle Manufacturino- Industry, and its provisions are the 
standards of fair competition for such Industry and are binding 
upon every member thereof. 

Article II — Definitions 

Wherever used in this Code, or any supplement appertaining 
thereto, the terms enumerated in this Article shall have the mean- 
ings herein defined unless the context shall otherwise clearly indicate. 

Sjxtion 1. The term '' President " as used herein means the Presi- 
dent of the United States. 

Sectivsn 2. The term '"Act '■ as used herein means the National 
Industrial Recovery Act. 

Section 3. The term "Administrator '' as used herein means the 
Administrator for Industrial Recovery under Title I of said Act. 

Section 4. The term " Bicycle Manufacturing Industry " or "' In- 
dustry " as used herein includes the manufacturing, selling and dis- 
tributing by the manufacturer of bicycles and parts thereof, and such 
related branches and sub-divisions thereof as may from time to time 
be included under the provisions of this C'ode. 

Section 5. The term " Member of the Indvistry "' includes all those 
engaged in the Industrv, either as an emplover or on his or its own 
behalf. 

Section G. The term " Employee '' as used herein includes any- 
one engaged in the Industry in any capacity, receiving compensa- 
tion for his services, irrespective of the nature or method of payment 
(;f such compensation, except a member of the Industry. 

Section 7. The term '' Employer " as used herein includes anyone 
l)y whom any such employee is compensated or employed. 

Section 8. The term ""Apprentice '" as used herein means an indi- 
vidual bound by indenture executed in compliance vrith the laws of 
the State where the service provided for therein is to be performed 
to serve an employer for the term of the indenture at a predeter- 
mined wage for the period of the indenture in order to learn a 
trade, art or craft. 

Section 9. The term " Learner " means an employee without 
previous experience engaged to become competent on one or more 
operations but who shall not be so classified after ninety (90) days 
employment in the Industiy. 

(203) 

G0!)76°— 544-122 — 34 2 



294 
Article III — Houks 

Section 1. Maximum Hours. — No employee shall work or be 
permitted to work in excess of forty (40) hours in any one week 
or eight (8) hours in any twenty-four (24) period, except as herein 
otherwise provided. A normal work day shall not exceed eight 
(8) hours. 

Section 2. Hours for Clerical a) id Office Employees. — No person 
empio3^ed in clerical or office work shall be permitted to work in 
excess of an average of forty hours in any one week during any five 
week period and not to exceed forty-eiglit (48) hours in any one 
week. A normal work day siiall not exceed eight (8) hours. 

Section 3. Exceptions as to Hours. — The limitation as to hours of 
labor as specified in Sections 1, 2 and 4 of this Article III shall not 
applv to the following: 

(a) Production employees, mechanical workers, or artisans in 
industry, except as hereinafter provided, shall not be employed in 
excess of forty (40) hours per week, nor more than eight (8) 
hours in any twenty-four (24) hour period ; provided, however, that 
during 2i\\y period in which a concentrated demand upon any divi- 
sion of the Industry shall place an unusual and temporary burden 
for production work upon its facilities or to meet seasonal peak 
requirements or emergencies, an employee of such division may be 
permitted to work not more than forty -five (45) hours per week and 
not more than nine (9) hours in any one day in not more than 
thirteen (13) weeks in an}^ calendar year. The present known peak 
period for the Industry occurs during a thirteen (13) week period 
in the last six months of the calendar year. 

(b) To employees engaged in emergency maintenance, or emer- 
gency repair work, involving breakdown or protection of life or 
property, provided that in ^uch special cases at least one and one- 
half times the normal wage rate for any employee so employed shall 
be paid for all hours worked in excess of forty (40) hours in any 
one week; provided that this overtime provision shall not apply 
in case of catastrophies involving loss of life. Such special cases, 
however, shall be reported to the Code Authority. 

(c) Nor to outside sales or sales service men, nor to persons in a 
managerial, executive or supervisory capacity, who receive more 
than $35.00 per week. 

(d) Nor to watchmen, who shall be permitted to work nut more 
than fifty-six (56) hours in any one week. 

(e) There may be a tolerance of 10% additional hours over the 
forty (40) hours in any one week for employees engaged in the 
preparation, care and maintenance of machinery and production 
facilities, and for stock and shipping clerks and truckmen engaged 
in outside delivery and pick-up service. 

Section 4. Standard Week. — No employee shall be permitted to 
work more than six (6) daj's in any seven (7) day period. 

Section 5. Eviployment hy Several E^nployers. — No employer 
shall knowingly permit any employee to work for any time, which 
when totalled v,'ith that alread}' performed with another employer 
or employers exceeds the maximum i3ermitted herein. 



295 

Article IV — WaoevS ^ 

Section 1. Mimmuni ^yage^. — On and after the effective date of 
this Code no e.inph)yee shall Lm? paid in any pay period less than at 
the rate of thirty-five (35) cents per hour, except as otherwise herein 
provided. 

Section 2. Piecework Conipenfiation — M Inhmtm Wages. — The es- 
tablished minininni rate of pay for the work performed in any pay 
period shall apply irrespective of whether an employee is actually 
compensated on time rate, piece work, or other basis. 

Section 3. Wages Above Min'nnvtn. — Within thirty (30) days 
from the date of approval of this Code, an adjustment of wa<!;es 
above the minimum provided in this Code shall be made by the 
members of the Industry who have not heretofore made such ad- 
justment. Such adjustment shall mean that differentials in com- 
pensation between employees receiving the minimum wage and em- 
ployees above the minimum existing prior to the date of approval 
of this Code shall be maintained ; provided, however, that in no 
event shall rates of pay be reduced. Each member of the Industry 
shall make a report of such adjustment wdiether 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 work as male employees shall receive the 
same rate of pay as male employees. 

Section 5. Handicapped Persons. — A person whose earning capac- 
ity is limited because of age or physical or mental handicap may be 
employed on light work at a wage not below 80% of the minimum 
established by this Code, if the employer obtains from the State 
Department of Labor a certificate authorizing his employment at 
such wages and for such hours as shall be stated in the certificate. 
Each employer shall file with the Code Authority a list of all such 
persons employed by him. Such handicapped persons shall not 
constitute more than 5% of the total number of employees of any 
one employer. 

Section 6. Minimum. Wage for Clerical and Office Employees. — 
iSTo accounting, clerical, office, sales or service employees working on 
a weekly basis in any office shall be paid less than at the rate of 
$15.00 per w^eek; provided, however, that office boys and girls and 
messengers shall be paid at a rate not less than 80% of the minimum 
hereinabove specified, and provided further that the number of such 
boys and girls and messengers so paid shall constitute not more than 
5% of the total number of such employees of any one office of any one 
employer, but in any case such employer shall be entitled to two such 
emploj'ees. 

Section 7. Apprentices. — The use of apprentices shall be permitted 
where they are apprenticed to an employer by an indenture made 
pureuant to the laws of the state in which such service is to be per- 
formed, under any ajDprentice system established and maintained by 
such employer, provided such indenture agreements are filed with the 
Code Authority. Employers shall not be allowed to have apprentices 
exceeding 5% of the total number of skilled craftsmen of their 



^ See paragraph 2 of order approving this Code. 



296 

special class, except that each employer shall be entitled to employ at 
least one such employee and in no case shall they be paid less than 
the minimum wage provided in Section 1 of Article IV. 

Section 8. Learners. — Learners for a period of not to exceed 
ninety (90) days may be paid not less than 80% of the minimum 
rates of wages, provided, however, the total number of such learners 
in any calendar month shall not exceed 5% of the total number of 
emplojTes. 

Article V — General Labor Provisions 

Section 1. Cli'dd Lahor. — Xo })erson under sixteen (IG) years of 
age shall be employed in the Industry. No person under eighteen 
(18) years of age shall be employed at operations or occupations 
which are hazardous in nature or dangerous to health. The Code 
Authority shall submit to the Administrator within sixty (60) days 
after the effective date of this Code a list of such operations or occu- 
pations. In any state, an employer shall be deemed to have complied 
with this requirement if he has on file a certificate or permit duly 
signed by the Authority in such state empowered to issue employ- 
ment or age certificates or permits showing that the emplo^^ee is 
of the required age. 

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

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

(c) Employers shall com])ly with the maximum hours of labor, 
minimum rates of pay and other conditions of employment ap- 
proved or prescribed by the President. 

Section 3. RecJassification of Employees. — No employer shall re- 
classify employees or duties or occupations performed or engage in 
any other subterfuge for the purpose of defeating the purposes or 
provisions of the Act or of this Code. 

Section 4. Standards for Safety and Health. — Every employer 
shall make reasonable provision for the safety and health of his 
employees at the place and during the hours of their employment. 
Standards of safety and health for- the Industry shall be submitted 
to the Administrator within six months after approval of this Code. 

Section 5. State Laios. — 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 coiiditions, or 
insurance or fire protection, than are imposed by this Code. 

Section 6. Posting. — All employers shall keep posted complete 
labor provisions of this Code and any amendments thereto in con- 
spicuous places accessible to employees. 



297 
Article VI — Code Authority' 

ORGANIZATION AND CONSTITUTION 

Section 1. A Code Authority to administer this Code is hereby 
established, which shall consist of four members to be elected by a 
fair method of selection so as to be truly representative of the Ii;- 
dustiy, subject to the approval of the Administrator; two such 
members are to be elected by the Members of the Industry, with 
each member thereof entitled to one vote for every one hundred 
(100) bicycles, or major fraction thereof, sold durinsj the twelve 
calendar months next preceding the month when the election is 
held, and two members to be electt>d by a majority vote of the 
Industry, wherein each member thereof is entitled to one vote; 
provided, further, that in the event any members of the Industry 
constituting in the aggregate less than a majority of all of the mem- 
bers of the Industry, shall collectively produce by number of units 
a volume of 50% or more of the total production of the Industry, 
those producing the remainder of such volume, shall always have 
representation on the Code Authority equal to those producing the 
majority of such volume. 

Section 2. In addition to members as above proAdded, there may 
be one and not more than three members, without vote and without 
expense to the Industry, to be appointed by the Administrator as 
he may specify for a six-month or twelve-month period from date 
of appointment. 

Section 3. Each trade or industrial association directly participat- 
ing in the selection or activities of the Code Authority shall (1) 
impose no inequitable restrictions on membership, and (2) submit 
to the Administrator true copies of its Article 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 eflPectuate the 
purpose 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, he may re- 
quire an appropriate modification in the method of election 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 assents 
ing to and complying with the requirements of this Code and sustain- 
ing their reasonable share of the expenses of its administration. 
Such reasonable share of the expenses of administration shall be de- 
termined by the Code Authority, subject to review by the Adminis- 
trator, on the basis of volume of business and/ or such other factors 
as may be deemed equitable. 

' See paragraph 2 of order approving this Cod*. 



298 

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 hereunder, 
be liable to anyone for any action or omission to act under this Code, 
except for his own mis-feasance or non-feasance. 

POWERS AND DUTIES 

Section 7. The Code Authority shall have the following further 
powers and duties, subject to such rules and regulations as may be 
issued by the Administrator, the exercise of which shall be 
reported to the Administrator and shall be subject to his right, on 
review, to disapprove any action taken by the Code Authority. If 
the Administrator shall determine that any action of a Code Author- 
ity 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 
thirt}'^ days' notice to him of intention to proceed with such action 
in its original or modified form. 

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

(b) To adopt By-Laws, Eules and Regulations for its procedure 
and for the administration and enforcement of the Code. The Code 
Authority shall promptly furnish the Administrator with true 
copies of the By-Laws, Rules or Regulations adopted pursuant to 
this paragraph. 

(c) To obtain from members of the Industry such information 
and reports as are required for the administration of the Code and 
to provid-e for submission by members of such information and 
reports as the Administrator may deem necessary for the purposes 
recited in Section 3 (a) of the Act, which information and reports 
shall be submitted by members to such administrative and/or 
government agencies as the Administrator may designate; provided 
that nothing in this Code shall relieve any member of the Industry 
of any existing obligations to furnish reports to any government 
agency. No individual reports shall be disclosed to any other mem- 
ber of the Industry or any other party except to such governmental 
agencies as may be directed by the Administrator. In addition to 
information required to be submitted to the Code Authority, there 
shall be furnished to government agencies such statistical informa- 
tion as the Administrator may deem necessary for the purposes 
recited in Section 3 (a) of the Act. 

(d) To use such trade associations and other agencies as it deems 
proper for the carrying out of any of its activities provided for 
herein, provided that nothing herein shall relieve the Code Author- 
ity of its duties or responsibilities under this Code and that such 



299 

trade associations and agencies shall at all times be subject to and 
comply with the provisions hereof. 

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

(f) To 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 recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the Industry in their rela- 
tions with each other or with other industries and to recommend 
to the Administrator measures for industrial planning, including 
stabilization of employment, which upon approval by the Admin- 
istrator shall become effective as a part of this Code. 

Abticle VII — Trade Practice Rules 

The following trade practices are declared to constitute unfair 
methods of competition between members of the Industry, and no 
member of the Industry shall use any of them, either directly or 
indirectly, through any officer, agent or employee. The violation 
of any one or more of these, together with such other trade prac- 
tice provisions which may be recommended to the Administrator 
and approved by him after such notice and hearings as he may 
prescribe, shall constitute a violation of this Code. 

1. No member oi the Industry shall sell any item which he manu- 
factures or purchases below his cost of that item. The Code Au- 
thority shall cause to be formulated an accounting system and 
methods of cost finding and estimating, capable of use by all mem- 
bers 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 esti- 
mate costs in accordance with the principles of such methods. 

2. Selling terms shall not exceed 2% 10th proximo, net after 10th 
proximo, except on factory shipments to Pacific Coast points, where 
the terms may be 2% second 10th proximo. 

3. Pre-dating or post-dating of any invoice or sales contract, ex- 
cept to conform to a bona-fide agreement entered into on the pre-date. 

4. All shipments shall be f.o.b. point of origin. In any case 
where the manufacturer has a warehouse stock in any city, freight 
need not necessarily be shown on the invoice, but the goods shall be 
priced to include full cost of freight plus warehouse expenses. 

5. No member of the Industry shall publish advertising (whether 
printed, radioj display or any other nature) which is misleading 
or inaccurate m any material particular, nor shall any member in 
any way misrepresent any goocls (including, but without limitation, 
its use, trademark, grade, quality, quantity, origin, size, substance, 
character, nature, finish, material, content or preparation) or credit 
terms, values, policies, services, or the nature or form of the business 
conducted. 

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



300 

7. No member of the Industry shall brand or mark or pack any 
goods in any manner which is intended to or does deceive or mislead 
purchasers with respect to the brand, grade, quality, quantity, 
origin, size, substance, character, nature, finish, material content or 
preparation of such goods. 

8. No member of the Industry shall publish or circulate unjus- 
tified or unwarranted threats of legal proceedings which tend to 
or have the effect of harassing competitors or intimidating their 
customers. 

9. 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, 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. 

10. No member of the Industry shall ship goods on consignment 
except under circumstances to be defined by the Code Autliority, 
with the approval of the Administrator, where peculiar circumstances 
of the Industry require the practice. 

11. No member of the Industry shall give, permit to be given, or 
directly offer to give, anything of value for the purpose of influ- 
encing or rewarding the action of any employee, agent or represent- 
ative 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 actually used for commercial 
bribery as hereinabove defined. 

12. ISTo 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 sucn contractual duties or services. 

13. No member of the Industry shall make allowances in any form 
for dating, freight, demonstration, or any other purposes, except that 
he may provide cuts, electros, and mats picturing and describing 
his own product as assistance to customers in advertising his 
merchandise. 

Akticle VIII — Export Trade 

No provision of this Code relating to prices or terms of selling, 
shipping or marketing, shall apply to export trade or sales or 
shipments for export trade. 

Article IX — 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 Sub-section (b) of Section 10 of the Act, from time 
to time to cancel or modify any order, approval, license, rule or 
regulation issued under said Act, and specifically, but without lim- 
itation, to the right of the President to cancel or modify his approval 



301 

of this Code, or any conditions imposed by him upon his approval 
thereof. 

Section 2, Such of the provisions of this Code as are not required 
to be inchided therein by the Act, nuiy, with tlie approval of the 
Administrator, be modified or eliminated in such manner as may be 
indicated by the needs of the public, by changes in circumstances, or 
by experience ; all the provisions of this Code, unless modified or 
eliminated, shall remain in effect during the life of the Act. 

Section 3. An amendment may be proposed by any interested 
party, either to the Code Authority or directly by or to the Admin- 
istrator. All proposed amenchiients shall be referred to the Code 
Authority, who shall give members of the Industry an opportunity 
to be heard thereon, and thereafter the Code Authority may make 
such recommendations thereon as is deemed proper, provided, how- 
ever, that when approved by the Administrator as necessary to 
effectuate the policies of the Act, after such notice and hearing as 
he may prescribe, any proposed amendment shall thereupcm become 
effective as a part of this Code. 

Section 4. The Code Authority may make recommendations for 
modifications of this Code to the Administrator which shall become 
effective as a part of this Code upon approval by the Administrator 
after such notice and hearing as he may prescribe. 

Article X — Monopolies 

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

Article 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 
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 — Eefective Date 

This Code shall become effective ten days after its approval by 
the Administrator. 

Approved Code No. 437. 
Registry No. 1407-1-02. 

60976° 544-122 84 2 



o 



Approved Code No. 438 
CODE OF FAIR COMPETITION 

FOR THE 

ABRASIVE GRAIN INDUSTRY 

As Approved on May 21, 1934 



ORDER 



Approving Code of Fair CoMPExmoN for the Abrasive 
Grain Industry 

An application ha^dng been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recoveiy Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Abrasive Grain Industry, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 

QirGCtGCl to tllG jCFGSlclGIlt; * 

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 nereby order that said Code of Fair 
Competition be and is hereby approved. 

Hugh S. Johnson, 
Adrmnistrator for LndiLstrial Recovery, 

Approval recommended : 
A. R. Glancy, 

Division Adrmnistrator. 

Washington, D.C, 

May 21, 193^. 

60977° 544-123 34 (303) 



REPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Abrasive Grain Industry of the United States, as revised after a 
Public Hearing conducted in Washing-ton on the 21st day of March, 
1934, in accordance with the provisions of the National Industrial 
Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Factory employees are limited to eight (8) hours per day; clerical 
and office employees may work nine (9) hours in any one day but 
a normal work day is eight (8) hours. All employees are limited 
to forty (40) hours per week of six (6) days, except on emergency 
maintenance and repair work. During i)eak periods overtime is 
permitted to the extent of thirty-two (32) hours in any three months' 
period. Shipping crews and truck drivers are permitted ten per 
cent (10%) hourly tolerance. Certain managerial employees receiv- 
ing thirty-five ($35.00) dollars a week or more, and outside sales- 
men are exempt from the hourly provisions. 

A minimum wage of not less than forty (40) cents per hour is 
established. Female employees will receive the same rate of pay 
as male employees for substantially the same class of work. Clerical 
emploj'ees will be paid not less than fifteen ($15.00) dollars per 
week, and office boys, girls and messengers will be paid not less 
than twelve ($12.00) dollars per week. 

ECONOMIC EFFECT OF CODE 

The forty (40) hour maximum week adopted by the President's 
Reemployment Agreement provided by the Code, and the new busi- 
ness since 1933 has increased em])loyment fifty-eight (58) per cent. 
The average hours worked in 1929 were 52.9 which average dropped 
to a low of 38.7 hours in 1933. Employment in June, 1933, was 
only 52.3 per cent of the 1929 average but by October employment 
increased to 82 per cent. 

Wages per hour averaged G2.1 cents in 1929 and showed an increase 
to 65.1 cents in 1933. The Industry has an invested capital of over 
$10,000,000.00 and shows averaire vearly sales of approximately 
$5,500,000.00 for t\\(i past five (5)" years. 

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; 

(304) 



305 

I find that : 

(a) Said Code is well desio;ned 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 
conunerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanctions and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the pres-ent 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 applicant group is an 
industrial association truly representative of the aforesaid Industry ; 
and that said association imposes no inequitable restrictions on 
admission to membership therein. 

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

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

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

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

Hugh S. Johnson, 

A dministrator. 
. May 21, 1934. 



CODE OF FAIR COMPETITION FOR THE ABRASIVE 
GRAIN 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 Abrasive Grain Industry, and shall be the 
standard of fair competition for such Industry and shall be binding 
upon every member thereof. 

Article II — Definitions 

Section 1. The term "Abrasive Grain Industry " or " Industry " 
is defined to mean the manufacture in electric furnaces of mineral 
abrasives and/or the reduction of electric furnace mineral abrasives 
or natural mineral abrasives to grain sizes and the sale of these 
products hj the manufacturer. 

Section 2. The term ''Association " means the Abrasive Grain 
Association. 

Section 3. The term " Employee " as used herein includes any 
and all persons engaged in the Industr}^, however compensated, 
except a member of Industrj^ 

Section 4. The term " Employer " as used herein includes anyone 
by whom an}' such employee is comj^jensated or employed. 

Section 5. The term '' ISIember of the Industr}^ '" includes, but 
without limitation, any individual, partnership, association, corpo- 
ration, or other form of enterprise engaged in the Industry, either 
as an employer or on his or its own behalf. 

Section 6. The term "Act " means Title I of the National Indus- 
trial Recovery Act. 

Section 7. The term "Administrator " means the Administrator 
for Industrial Recovery. 

Section 8. The " President " as used herein means the President 
of the United States. 

Article III — Hours 

Section 1. No employee, except as hereinafter provided, shall be 
permitted to work in excess of forty (40) hours in any seven (7) 
day period, or more than eight (8) hours in any twenty-four (24) 
hour period provided, however, that during any period in whicli a 
concentrated demand upon any division of the Industry shall place 
an unusual and temporary burden for production upon its facilities, 
an employee of such division may be permitted to work not more 
than thirty-two (32) additional hours in any three (3) months' 
period, but not more than fortj'-eight (48) hours in any seven (7) 

(306) " 



307 

day period, or more than eight (8) hours in any twenty-four (24) 
hour period ; and provided further that there shall be no intentional 
duplication of such additional hours worked by employing one gang 
of w^orlonen after another for this purpose. 

Section 2. No accounting, clerical, office, service, or sales employ- 
ees, except as hereinafter provided, shall be permitted to work in 
excess of forty (40) hours in any one week or nine (9) hours in any 
one day. A normal day shall not exceed eight (8) hours. 

Section* 3. The maximum hours fixed in the foregoing sections 
shall not apply to employees in a managerial, supervisory, or execu- 
tive capacity, receiving thirty-five (35) dollars or more per week, 
OT to outside salesmen. Furthermore, employees on emergency main- 
tenance and repair work involving break-downs or protection of 
life and property, may be employed in excess of the maximum hours 
fixed in the foregoing sections. 

Section 4. All employees to whom Sections 1, 3 and 6 of this 
Article III apply, excepting managerial, executive, and supervisory 
employees, receiving thirty-five (35) dollars or more per week, who 
work more than forty (40) hours in any seven (7) day period, or 
•who work more than eight (8) hours in any tw^enty-four (24) hour 
period, shall be paid not less than one and one half (IV2) times 
their normal rate of pay for such excess hours. 

Section 5. No watchmen shall be permitted to work in excess of 
fifty-six (5G) hours in any one week. 

Section 6. Employees engaged on shipping crews, including 
truck drivers, shall be permitted a tolerance of ten (10) percent 
over the forty (40) hours provided in Section 2 of this Article III. 

Section 7. No employeo shall be permitted to work in excess of 
six (6) days in any one (1) week. 

Section 8. No employer shall knowingly permit any employee to 
work for any time which, when totalled with that already per- 
formed for another employer or employers, exceeds the maximum 
permitted herein. 

Article IV — Wages 

Section 1. No employee, except as otherwise herein provided, 
shall be paid less than at the rate of forty (40) cents per hour. 

Section 2. Prompt adjustments shall be made in all rates in which 
equitable adjustments have not been made, or are not in effect. In 
no case shall the hourlv rate be reduced and no change shall be made 
in piece-work rates wliich will reduce the former hourly or daily 
earnings of piece workers. Each member shall report such adjust- 
ments to the Code Authority within thirty (30) days after the 
effective date and to the Administrator on his request. 

Section 3. No employer shall re-classify employees or duties of 
occupations performed, or engage in any other subterfuge for the 
purpose of defeating the purposes or provisions of the Act or of 
this Code. 

Section 4. Emploj^ers shall agree with employees to make pay- 
ment of all wages weekly in lawful currency, or by negotiable check, 
payable on demand. Such wages shall bo exempt from any payment 
for pensions, insurance, or sick benefits other than those voluntarily 
paid by employees. Employers, or their agents, shall not accept 
directly or indirectly, rebates on such wages,. or give anything of 



308 

value, or extend any favors, to any person for the purpose of 
influencing rates of wages, or working conditions, of their employees. 

The provisions of this section regarding payment of wages weekly 
shall not apply to persons employed in a managerial or executive 
capacity who earn not less than thirty-five (35) dollars per week, or 
to persons emjjloyed in clerical or office work. Wages for persons 
emploj^ed in clerical or office work may be paid at the end of pay 
periods not to exceed bimonthly periods. 

Section 5. The minimum wage that shall be paid to employees to 
whom Section 2 of Article III applies shall be not less than fifteen 
(15) dollars per week; provided, however, that office boys and girls 
and messengers may be paid at a rate of not less than eighty (80) 
percent of the minimum salary established in this Section 5 of 
Article IV herein; and provided, further that the number of such 
office boys and girls and messengers so paid shall constitute not more 
than three (3) percent of the total number of employees of any one 
employer, but in any case such employer shall be entitled to two (2) 
such employees. 

Section 6. 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 wage below the minimum established by this 
Code, if the emplo3^er obtains from the State Authority, designated 
by the United States Department of Labor, a certificate authorizing 
such person's employment at such wages and for such hours as shall 
be stated in the certificate. Such authority shall be guided by the 
instructions of the United States Department of Labor in issuing 
certificates to such persons. Each employer shall file monthly with 
the Code Authority a list of all such persons employed by him, 
showing the wages paid to, and the maximum hours of work for 
such employee. 

Section 7. Female employees performing substantially the same 
work as male employees shall receive the same rate as male employ- 
ees, and where they displace male employees they shall receive the 
same rate of earninf^s as the men they replace. 

Section 8. This Article establishes minimum rates of pay irre- 
spective of whether an employee is actually compensated on a time 
rate, piecework, or other basis. 

Artic;le 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) 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 the provisions 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. The Code Au- 
thority shall submit to the Administrator for approval, within three 
(3) months after the effective date of this Code, a list of operations 
or occupations hazardous in nature or detrimental to health. 

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 



309 

of labor, or their agents, in the designation of such representatives 
or in sell organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

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

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

Section 5. Xo provision in this Code shall supersede any State 
or Federal law which imposes on employers more stringent require- 
ments as to age of employees, wages, hours of work, or as to safety, 
health, sanitary, or general working conditions, or insurance or fire 
protection, than are imposed by this Code. 

Section 6. Each employer shall post and keep posted in a place 
easily accessible to all employees in every plant or factory copies 
of the labor provisions of this Code, 'the posting of the labor 
provisions of this Code shall be in accordance with rules and regida- 
tions of the President or the Administrator. 

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

Section 8. 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 9. No employee shall be dismissed by reason of making 
a complaint or giving evidence with respect to a violation of this 
Code. 

Akticle VI — Administration 

Section 1. (a) To effectuate the policies of the Act, a Code Au- 
thority is hereby constituted. The Code Authority shall consist of 
not less than seven (7) persons and not more than eight (8) persons. 
Seven members shall be selected from the Association by a fair 
method of selection and one member who is not a member of the 
Association may he selected from the Industry b}' non-members of 
the Association. 

The Administrator maj'^ appoint one (1) to three (3) members 
without vote to represent the Administrator. 

(b) Membere 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 I:)}' assenting 
to and complying with the requirements of this Code. Each member 
of the Industry shall bear his or its proportionate share of the ex- 
penses of the Code Authority and the administration of the Code, 
which proportionate share shall be based upon the gross sales (less 
discounts and returns) or upon such other fair and equitable basis 
as the Code Authority may specify, subject to review bj- the Admin- 
istrator, and such funds shall be collected by the Code Authority. 

(c) Each trade or industrial association directly or indirectly par- 
ticipating in the selection or activities of the Code Authority, shall 
(1) impose no inecjuitable restriction on membership, and (2) submit 



310 

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. 

(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 proj^jer; 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) If the Administrator shall at any time 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 clays' notice to him of intention to 
proceed with such action in its original or modified form. 

Section 2. The Code Authority shall have the following powers 
and duties. 

(a) Subject to such rules and regulations as may be issued by 
fhe Administrator, to insure the execution of the provisions of this 
Code and to 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. 

(c) To obtain from members of the Industry such information 
and reports as are required for the administration of the Code. 
In addition to information required to be submitted to the Code 
Authority, members of the Industry subject to this Code shall fur- 
nish such statistical information as the Administrator msij deem 
necessary for the purposes recited in Section 3 (a) of the Act to 
such federal and state agencies as he may designate ; provided that 
nothing in this Code shall relieve any member of the Industry of 
any existing obligations to furnish reports to any government 
agency. No individual report shall be disclosed to any other mem- 
ber of the Industry or any other party except to such other 
governm.ental agencies as may be directed by the Administrator. 

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

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



311 

(g) To cooperate with the Administrator in regulating the use 
of an)' National Recovery Administration insignia solely by those 
members of the Industry who have assented to, and are complying 
with, this Code. 

(h) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provisions to 
govern members of the Industry in their relations with each other 
or with other industries; measures for industrial planning and sta- 
bilization of emplo3'ment; and including modifications of this Code 
which shall become effective as part hereof upon approval by the 
Administrator after such notice and hearing as he may specify. 

(i) To 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 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. 

(j) To provide appropriate facilities for arbitration, and subject 
to the approval of the Administrator, to prescribe rules of procedure 
and rules to effect compliance with awards and determinations. 

Article VII — Trade Pilvctices 

It shall be an unfair method of competition and a violation of this 
Code for any member of the Industry to engage in any of the 
following practices : 

Section 1. The false marking or branding of the products of the 
Industry, with the intent of misleading or deceiving purchasers with 
respect to the quantity, quality, size, or substance of the goods 
purchased. 

Section 2. Making or causing or permitting to be made or pub- 
lished any false, untrue, or deceptive statem.ent by way of advertise- 
ment or otherwise concerning the quality, quantity, substance, 
character, nature, origin, size, or preparation of any product of the 
Industrj^, having the tendency and capacity to mislead or deceive 
purchasers or prospective purchasers or to affect injuriously the 
business of competitors. 

Section 3. The imitation of the trade marks, trade names, or 
other marks of identification of competitors, having the tendency 
and capacity to mislead or deceive purchasers or prospective 
purchasers. 

Section 4. The defamation of competitors by falsely imputing 
to them dishonorable conduct, inability to perform contracts, or ques- 
tionable credit standing, or by other false representation, or the false 
disparagement of the qualit}' of their goods. 

Section 5. Wilfully inducing or attempting to induce the breach 
of existing contracts between competitors and their customers, or 
interfering with or obstructing the performance of any such con- 
tractual duties or services, with the purpose and effect of hampering, 
injuring, or embarrassing competitors in their business. 

Section 6. The payment or allowance to any customer of secret 
rebates, refunds, or credits, whether in the form of money or 
otherwise. 



312 

Sectiox 7. 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 provision shall not be construed to prohibit 
free and general distribution of articles commonly used for adver- 
tising except so far as such articles are actually used for commercial 
bribery as hereinabove defined. 

Section 8. Price Guarantees shall not be given except in the 
following form : 

(a) On bona fide orders covering definite quantities of definite 
specifications, the price prevailing on the date the order is placed 
shall apply to all shipments made within eight (8) weeks of the 
date of the order. On such shipments as may be deferred bej^ond 
the eight (8) weeks' period, at the request of the customer, the 
price prevailing at the time of shipment shall apply. 

(b) Any written quotation accepted by a customer within ten 
(10) days for shipment within eight (8) weeks may be filed at the 
price quoted. 

Section 9. Each member of the Industry within twenty (20) 
days after the effective date of this Code shall file with the Code Au- 
thority a net price list or price list and discount sheet, as the case 
may be, and all special prices, freight allowances, and trade dis- 
counts, individually prepared by him, showing his current prices, 
or prices and discounts and terms of sale and payment, and if he 
so desires, Jie names of his customers, to whom limit prices are 
quoted. This information shall be open to examination at the office 
of the Code Authority to all interested parties as each may be con- 
cerned. No member of the Industry shall deviate from his prices 
as thus filed unless and until revised lists, which shall become ef- 
fective immediately upon filing, shall have been filed with the Code 
Authority, copies of which shall in like manner be available for 
examination. No member of the Industry shall sell his products 
at prices, or on terms, more favorable than those provided in his 
current net price list, or price list and discount sheet, as submitted 
to the Code Authoritj^, except as otherwise provided herein, nor 
shall he grant quantity prices, except on the inclusion in one ship- 
ment to one destination of the quantity on which such price is 
granted, provided, however, if any member of the Industry, act- 
ing in good faith, is unable to make delivery in one shipment of all 
the material ordered by a consumer customer upon which order such 
customer has been granted a quantity price, such member shall 
be permitted to make immediate shipment of the quantity or quan- 
tities of the product in his hands available for that purpose, and 
to make complete shipment of the remainder of such order as soon 
as possible thereafter, provided however that each portion of such 
order to be known as a " split shipment " so shipped shall be ac- 
companied by an invoice which in each case shall show the total 
quantity of the order for such product, and the quantity of the 
product included in each individual invoiced shipment; copies of 
all invoices covering such split shipments must be filed immediately 



313 

with the Code Authority; and provided, further, that those in- 
dividual sizes of abrasive grains recognized in the Industry as sur- 
phis stock and so classified by the Code Authority may be offered 
or sokl b}^ any party to this Code for not less than sixty six and 
six tenths (G6.6) per cent of the highest price for like quantity of 
such size or sizes filed by said party; all such quotations or sales 
shall be iniaiediately reported in writing to the Code Authority in 
the manner to be prescribed by it. 

Section 10. Abrasive Grains m.'-y be furnislied for trial purposes 
Old}' under the following terms: 

Full payment is to be made if grains are satisfactory, or if partially 
satisfactory and usable, to be paid for on the basis of value received, 
or if unusable, to be returnee! for full credit. Any deviation from 
these terms shall be considered as unfair competition. 

Section 11. Giving or offering to give for free trial of abrasive 
grains in excess of fifteen pounds of any one size or kind at any one 
time is an abuse and is hereby denned as unfair competition. 

Section 12. Conditioning the sale of any particular material upon 
the purchase by a customer of other products of the supplier, is 
defined as unfair competition. 

Section 13. Placing any product of the Industry in the possession 
of or under the control of a consumer customer on consignment is 
hereby defined as unfair competition. 

Article VIII — Modification 

Section 1. This Code, and ail the provisions thereof, is 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 finj order, 
approval, license, rule, or regulation issued under Title I of said Act, 
and specifically, but without limitation, to the right of the President 
to cancel or modify his approval of this Code, or any conditions 
imposed by him upon his approval thereof. 

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

Article IX — Monopolies, Etc. 

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

Article X — Effective Date 

This Code shall become effective on the third Monday after its 
approval by the President and shall be binding upon every member 
of the Industry. 



Approved Code No. 438. 
Registry No. 1001-04. 



O 



Approved Code No. 439 
CODE OF FAIR COMPETITION 

FOR THE 

TANK CAR SERVICE INDUSTRY 

As Approved on May 22, 1934 



ORDER 



Code of Fair Competition for the Tank Car Service Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recoveiy Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Tank Car 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 
Stat^es, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the Pres- 
ident, including Executive Order No. 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, 
Ad minis f/rcntor for Industrial Recovery. 

Approval recommended : 
K. M. Simpson, 

Division Administrator. 

Washington, D.C, 

May 22, 1934. 

61349° -544-130 34 (315) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: The original Code of Fair Competition for the Tank Car 
Service Industry was submitted on October 4, 1933, by the Tank Car 
Service Association, an unincorporated membership societj^ organ- 
ized in 1933, whose members are estimated to represent ninety-five 
percent of the total volume of the Industry. Several revisions of 
the Code were made prior to the public hearing, which public hearing 
was held on February 16, 1934. The Code was revised during a 
recess of this hearing and was presented in its present form for ap- 
proval. Every person who requested appearance was properly 
heard in accordance with the provisions of the Act. 

ECONOMIC EFFECTS OF TIIE CODE 

Emplojmient in this Industry is relatively small in proportion 
to invested capital. Peak employment was reached in 1929 and 
totaled 2,256 employees. The figure for 1933 placed employment 
for the first half of that year at 1,878 employees and the aggregate 
invested capital amounted to approximately $92,500,000. 

The annual volume of business reached its peak in 1929, with 
forty-five concerns reporting gross revenues of approximately 
$26,560,000. The gross revenues declined approximately forty per- 
cent between 1929 and 1932, amounting to approximately $16,500,000 
in the latter year. The 1933 returns covering the first six months 
indicate gross revenues of $8,047,000 and suggest a total for the cal- 
endar year 1933 approximating that of the preceding year. 

PROVISIONS OF THE CODE AS TO WAGES AND HOURS 

This Code limits the working week to forty hours and to six days, 
arid the working day to eight hours. Exceptions are permitted for 
service employees who may be employed not in excess of forty- 
four hours per week ; also traveling and sales employees or persons 
employed in a managerial or executive capacity, plant superintend- 
ents, shop foremen and car inspectors receiving not less than thirty- 
five dollars per week, and employees on emergency maintenance or 
emergency repair work involving break-down, protection of life, 
plant or tank cars or on emergencies occptsioned b}'' the necessity for 
the services of specially skilled employees which cannot be cared 
for by the employment of additional men, provided that in any 
case, one and one-half times the normal rate shall be paid for hours 
worked in excess of the maximum hours specified. 

The Code provides a minimum rate of pay of forty cents per hour 
for common labor and a minimum wage of fifteen dollars per week 
for any employee paid on a weekl}^ basis, including office employees. 

(316) 



317 

The Code provides that on or before the effective date each em- 
ployer who has not done so prior thereto shall make such equitable 
adjustment of rates of pay of emjjloyees receiving more than the 
mininunn rates of pay as to maintain the existing differential in 
weekly earnings as of June IG, 1988. However, in no event shall 
hourly rates of pay be reduced. Further, all members of the Indus- 
try shall submit to the Code Authority reports covering all adjust- 
ments in rates of pay of employees since June 16, 1933, within four 
weeks after the effective date of this Code. 

The Code prohibits employment of persons under sixteen years 
of age, or under eighteen years of age on operations or occupations 
which are hazardous. Provisions are to be made for the safety and 
health of all employees and a report submitted to the Administrator 
within six months after the effective date of this Code. 

FAIR TRADE PRACl^ICES 

The business of the Industry consists of leasing tank cars to 
railroad shippers. It has grown up because : 

(1) Railroads never have assumed the responsibility of i)roviding 
specific equipment for transportation of this type service, and 

(2) The Interstate Commerce Commission never has imposed 
this requirement upon common carriers by rail. 

Industrial concerns have organized and provide such equipment, 
and railroads because of this rendered service (which leaves to them 
only the responsibility of moving the traffic and no part in main- 
taining or providing the equipment), in accordance with I.C.C. 
determination, pay to the OAvner-ship]>er a mileage allow^ance of 
1^^ for each mile the car is hauled. 

The terms upon which equipment has been leased to individual 
shippers vary with the practice of individual companies. They are : 

(1) The small tank car lessors lease equipment on a trip basis 
and are paid per diem for the use of their equipment for the period 
which terminates with the end of the particular trip. 

(2) Other lessors lease on a rental basis for a period of time 
measured in terms of months. 

(3) Large lessors make leases to supply the entire requirements 
of the lessee covering a period of not less than one year and the 
lessee, in turn, agrees that its entire tank car requirements shall be 
supplied by the lessor. 

The leading provisions as specified in the Code have the approval 
of Industry Members owning approximately 95% of the tank cars 
in service. 

Investigation of practices heretofore existing in the Industry 
indicate clearly the necessity for stabilizing rentals and preventing 
excessive refunds of mileage allowances, to the extent of violation of 
the Elkins Act. It is felt that no undue hardship on smaller units 
of the Industry will be occasioned by the restrictions provided, and 
that the Industry will become more stable, because of the staying of 
excessive and unfair competition. 

The Code provides that under emergency conditions the Code 
Authority may cause to be established a rental minimum for tank 



318 

cars on each of the bases set forth, and such minimum shall not be 
more than the lowest reasonable cost of supplying tank cars as de- 
termined by the Code Authority, it giving due consideration to and 
taking into account all the proper cost factors. The Administrator 
may approve, disapprove or modify the determinations of the Code 
Authority. 

FIXDINGS 

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 Rcovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the am.ount 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, 
b}^ 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, by increasing the con- 
sumption of industrial and agricultural products through increasing 
purchasing power, by reducing and relieving unemployment, by 
improving standards of labor, and by otherwise rehabilitating 
industry. 

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

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

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

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

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

For these reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

AdTninistrator. 
Mat 22, 1934. 



CODE OF FAIR COMPETITION FOR THE TANK CAR 
SERVICE INDUSTRY 

To effectuate the policies of Title I of the National Industrial 
Recovery Act. the followintr provisions are established as a Code 
of Fair Competition for the Tank Car Service Industry, and 
its provisions shall be the standards of fair competition for such 
Industry, and shall be binding upon ever}- member thereof. 

Article I — Definitions 

The term " Industry " as used herein means the Tank Car Serv- 
ice Industry and is defined as the leasing or supplying- (except as 
to transactions between a parent company and its wholly owned 
subsidiaries, or between wholly OAvned subsidiaries of the same 
parent company, and except by railroads and other common car- 
riers) of tank cars (other than tank cars known as I.C.C. Specifica- 
tions Nos. 105A, 106A, IOTA. 108 and 108A) to others for the 
transportation or handling of liquid or other commodities. 

The term " Member of the Industry " as used herein includes, 
but without limitation, any individual, partnership, association, 
corporation or other form of enterprise engaged in the Industry, 
either as an employer or on his or its own behalf. 

The term " Lessor '' shall include every member of the Industry 
who leases or otherwise supplies, directly or indirectly, tank cars to 
others. 

The term " Lessee '' shall include all of those who use tank cars 
owned or operated by members of the Industry, except as herein 
otherwise provided. 

The term ''Association *" as used herein shall mean the Tank Car 
Service Association. 

The term " Lease " shall mean any arrangement whatsoever, 
whether loaning, leasing, assigning, or otherwise, under which tank 
cars are supplied by a Lessor to a Lessee. 

The term " Employee *' as used herein includes any and all per- 
sons engaged in the Industry, however compensated, except a mem- 
ber of the Industry. 

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

The term "' President " shall mean the President of the United 
States of America. 

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

The term " mileage allowance "' shall mean the amounts paid by 
carriers for mileage on tank cars of private ownership, pursuant to 
the terms of the currently effective tariffs applicable thereto, filed 
with the Interstate Commerce Commission. 

(319) 



820 
Article II — ^Houks 

(a) No employee shall be permitted to work in excess of forty 
(40) hours in any one week or eight (8) hours in any twenty-four 
(24) hour period except as herein otherwise provided. 

(b) Service employees such as watchmen, first aid attendants, 
janitors, switching crews or power plant employees may be employed 
not in excess of forty-four (44) hours per week and eight (8) hours 
shall be the normal working day. 

(c) Ko person employed in clerical or office work shall be permit- 
ted to work in excess of forty (40) hours per week. A normal work 
day shall not exceed eight (8) hours. 

(d) The provisions of this Article shall not apply to traveling and 
sales employees or to persons employed in a managerial or executive 
capacity, plant superintendents, shop foremen and car inspectors 
receiving not less than thirty-five dollars ($35.00) per week; pro- 
vided, however, that the limitations of paragraphs (a) and (b) shall 
not apply to any employee on emergency maintenance or emergency 
repair work, involving breakdowns or protection of life, plant or 
tank cars, or on emergencies occasioned by the necessity for services 
of specially skilled employees which can not be cared for by the em- 
ployment of additional men, but in any such special case at least one 
and one-half (I14) times the normal rate shall be paid for hours 
worked in excess of the maximum provided in paragraphs (a) and 
(b) above. 

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. 

No employee shall be permitted to work more than six (6) days 
in any seven (T) da}^ period. 

Articl.e III — Wages 

(a) No employee shall be paid less than at the rate of 40 cents 
per hour, provided, however, that the minimum wage that shall be 
paid by any employer to any employee paid on a weekly basis, in- 
cluding office employees, shall not be less than at the rate of $15.00 
l^er week. 

(b) The rates specified shall apply v/hether calculated on an 
hourly, daily, weekl3% monthly, piecework or other basis. 

(c) On or before the effective date hereof, each employer, who has 
not done so prior thereto, shall make such equitable adjustment of 
rates of pay of employees receiving more than the minimum rates 
of pay as will maintain the existing differential in weekly earnings 
as of June 16, 1933, provided, however, that in no event shall hourly 
rates of pay be reduced. 

(d) All members of the Industry shall submit in detail a report 
to the Code Authority through the Secretary of the Association 
covering all adjustments in rates of pay of employees since June 16, 
1933, within four (4) Aveeks after the effective date of this Code. 

(e) A person whose earning capacity is limited because of age, 
physical or mental handicap, or other infirmity, may be employed 



321 

on li«rht 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 employmerit at such wages and for such hours as shall 
be stated in the certificate. Each employer shall file monthly v>'ith 
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 
emplo3'ee. 

Article IV — General, Labor Provisions 

Section 1, No person under sixteen (16) years of age shall bo 
employed in the Industry. No person under eighteen (18) years of 
age shaU be employed at operations or occupations which are haz- 
ardous in nature or dangerous to health. The Code Authority shall 
submit to the xVdministrator, on or before sixty (60) days after the 
effective date of this Code, a list of such operations or occupations. 
In any State an emploj-er shall have on file a certificate or permit, 
duly issued by the Authority in such State empowered to issue 
employment or age certificates or permits, showing that the employee 
is of the required age. 

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

(b) No employee and no one seeking employment shall be required 
as a condition of employment to join any company union or to 
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 provisions of the Act or of this Code. 

Section 4. Every employer shall provide for the safety and health 
of his employees at the place and during the hours of their employ- 
ment. Standards 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 5. No provisions in this Code shall supersede any State 
or Federal law which imposes more stringent requirements as to 
age of employees, wages, hours of work, or as to safety, health, sani- 
tary, or general working conditions, or insurance or fire protection, 
than are imposed by this Code. 

Section 6. No employee shall be dismissed by reason of making 
a complaint or giving evidence with respect to a violation of this 
Code. 

Section 7. All employers shall post and keep posted copies of 
wage, hour and labor provisions and of the definitions applicable 
thereto in this Code in conspicuous places accessible to all employees. 



322 

Every member of the industry shall comply with all rules and 
I'egulations relative to the posting of provisions of Codes of Fair 
Competition which may from time to time be prescribed by the 
Administrator. 

Article V — Code Authority 

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

Section 2, The Code Authority, whose members shall serve one 
year and until their respective successors are elected or appointed, 
shall consist of (a) five persons (who shall respectively be repre- 
sentatives of five different members of the Association) elected by 
the Association, voting by tank cars, so that, in the election of such 
five persons, each member of said Association shall have as many 
votes as the number of tank cars owned by it; (b) two additional 
persons elected by the Association, voting by individuals, so that, in 
the election of such two persons, each member of the Association 
shall have one vote, and no person shall be elected as one of said two 
members of the Code Authority unless he shall have received the 
vote of a majority of the members of the Association voting in such 
election; (c) one person elected by the members of the Industr}'^, if 
any, who are not members of the Association, and, in default of such 
election for thirty (30) days after the effective date of this Code, 
the Association shall appoint, as such member, subject to the ap- 
proval of the Administrator, an officer of one of the members of 
the Industry (if any) not a member of the Association; (d) one 
member at large who shall be the then president of the Association : 
(e) not more than three persons appointed by the Administrator, but 
the said member or members so appointed shall have no vote, and 
shall serve without expense to the Industry. 

In any election of members of the Code Authorit}^ any member of 
the Industry owning all the stock or having the entire equitable 
interest in a subsidiary or subsidiaries engaged in the Industry 
shall, together with such subsidiary or subsidiaries, be considered 
as and entitled to the rights of only one member of the Industry. 

No two members of the Code Authority, elected as hereinabove 
in Clauses (a), (b) and (c) provided, shall be officers of, employed 
by, or representative of the same member of the Industry. 

Any vacancy in the Code Authority shall be filled by unanimous 
vote of the remaining members of the Code Authority at a meeting 
regularly called and the member so chosen must be a non-member 
of the then constituted Code Authority who shall serve until the 
expiration of the term, of the member whose office became vacant. 

The Code Authority shall serve reasonable notice on all members 
thereof of all meetings of the Code Authority. 

Section 3. 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 pre- 
scribe 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 the selec- 
tion of the Code Authority. 



323 

Section 4. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for anj- 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 anj'one for any action or omission to act under 
this Code, except for his own willful misfeasance or non-feasance. 

Section 5. Subject to the right of the Administrator, on review, 
to disapprove any action taken by the Code Authority, the Code 
Authority shall, in addition to powers and duties otherwise pro- 
vided in "this Code, have the following powers and duties pertaining 
to tlie administration of this Code : 

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

(b) To receive complaints of ^dolations of this Code, except 
labor complaints and disputes, make investigations thereof and 
bring to the attention of the Administrator for prosecution, recom- 
mendations and information relative to unadjusted violations. 

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

(d) To consider and make recommendations for the modification 
of or an amendment to this Code. 

(e) 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 re- 
cited in Section 3 (a) of the Act, which information and reports 
shall be submitted by members to such administrative or government 
agencies as the Administrator may designate ; provided, that nothing 
in this Code shall relieve any member of the Industry of any existing 
obligations to furnish reports to any government agency. No indi- 
vidual reports shall be disclosed to any other member of the In- 
dustry or any other party except to such governmental agencies as 
may be directed by 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 Autliority 
of it-s 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. 

Section 6. If the Administrator shall determine that any action 
of a Code Authority, or any agency thereof, may be unfair or unjust 
or contrary to the public interest, the Administrator may require 
that such action be suspended, to afford an opportunity for investi- 
gation of the merits of such action and further consideration by such 
Code Authority or agency pending final action, which shall not be 
effective unless the Administrator approves, or unless he shall fail 
to disapprove, after thirty (30) days' notice to him of intention to 
proceed with such action in its original or modified form. 



324 

Section 7. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Au- 
thority shall (1) impose no inequitable restrictions on 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 neces- 
sary to effectuate the purjooses of the Act. 

Section 8. (1) It being found necessary to support the Adminis- 
tration of this Code, in order to effectuate the policy of the Act and 
to maintain the standards of fair competition established hereunder, 
the Code Authority is authorized: 

(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes and to meet such obligations out 
of funds which shall be held in trust for the purposes of the Code 
and raised as hereinafter provided; 

(b) To submit to the Administrator for his approval, subject to 
such notice and opportunity to be heard as he may deem necessary: 

1. An itemized budget of its estimated expenses for the foregoing 
purposes; and 

2. An equitable basis upon which the funds necessary to support 
such budget shall be contributed by all members of the Industry 
entitled to the benefits accruing from the maintenance of such 
standards, and the administration thereof; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and collect equitable 
contributions as above set forth, and to that end, if necessary, to 
institute legal proceedings therefor in its own name. 

(2) Each member of the Industry shall be liable for his or its 
equitable contribution to the expenses of the maintenance of the 
Code Authority as hereinabove provided. Only members of the 
Industry complying with the Code and making such contribution 
shall be entitled to participate in the selection of the members of the 
Code Authority or to receive the benefits of its voluntary activities 
or to make use of any N.R.A. insignia. 

Article VI — Leases 

(a) When the Code Authority determines that an emergency 
exists in this Industry and that the cause thereof is destructive 
price cutting such as to render ineffective or seriously endanger 
the maintenance of the provisions of this Code, the Code Authority 
may cause to be established a Code minimum for tank cars on each 
of the bases hereinafter mentioned; and such minimum shall not be 
more than the lowest reasonable cost of supplying tank cars as 
determined by the Code Authority by giving due consideration to 
and taking into account all proper cost factors and providing a 
reasonable differential between rentals on bases 1 and 2 herein ; such 
determination to be subject to such notice and hearing as the 
Administrator may require. The Administrator may approve, dis- 
approve, or modify the determination. Thereafter, during the 
period of the emergency, it shall be an unfair trade practice for any 



325 

member of the Industry to supply tank cars below the Code mini- 
mum. AVhen it appears that conditions have changed, the Code 
Authority, upon its own initiative or upon the request of any inter- 
cst^^d party, shall cause the determination to be review^ed. 

(b) No lessor shall make any new lease or renew, revise, or extend 
any existino- lease of tank cars, whether operated under lessor's or 
lessee's reporting marks, without a stipulated charge or rental, 
and such new, renewed, revised, or extended lease shall be on any 
one of the bases provided in subsections 1, 2, or 3 of this section, 
and on no other basis. 

1. If the stipulated charge or rental is a stated amount of money 
l^er day: the lease shall be for a definite number of specific size 
and type of cars; the lessor must receive and retain all mileage 
allowance; the lessor shall not permit the lessee to receive and 
retain any credit or refund on account of mileage allowance, ex- 
cept tliat tlie lessor may give a credit or refund on account of mile- 
age allowance, earned during the period the lessor is actually charg- 
ing the lessee rental, up to but not exceeding the amount of such 
rental, and the stipulated charge or rental shall be charged for 
every day from the date the car is made available by the lessor 
for loaning until the date the car is unloaded or released by the 
lessee, including both dates, and shall not be less than the Code 
minimum per clay provided for in this Article VI. 

2. If the stipulated charge or rental is a stated amount of money 
per month : the lease shall be for a definite term of not less than 
a month and for a definite number of specific size and type of cars ; 
and the lessor shall not permit the lessee to receive and retain, 
any mileage allowance or credit or refund on account of mileage 
allowance in excess of the stipulated charge or rental; and the 
lessor shall receive and retain all mileage allowance in excess of said 
stipulated charge or rental; and the stipulated charge or rental 
shall commence not later than the date when the car is made avail- 
able by the lessor for initial loading and shall continue until (on 
or after the expiration of the lease) the car is unloaded and released 
by the lessee, and such stipulated charge or rental shall not be less 
than the Code minimum per month or portion thereof provided 
for in this Article VI. For the purpose of determining the excess 
of mileage allov/ance over the stipulated charge or rental, such 
mileage ailov/ance shall be averaged over a period or periods of 
twelve (12) months commencing ^^s-ith the date of the lease, or if 
the lease is for a shorter ]Deriod, shall be averaged over the term of 
the lease. 

3. If the stipulated charge or rental is not a stated amount of 
money : the lessor must contract to supply the entire requirements 
of the lessee for tank car equipment for a period of not less than 
one (1) year; the lessor must receive and retain all mileage allow- 
ance ; the lessor shall not permit the lessee to receive or retain any 
credit or refund on account of mileage allowance; and the total 
amount of charge or rental received by lessor from lessee under such 
lease, plus mileage allowance, averaged annually shall not be less 
than the Code minimum per month or portion thereof provided 
for in this Article VI, for subsection 2 above. 



326 

(c) All rental chars^es shall be billed monthly, and shall be pay- 
able within sixty (GO) days of billing, and no credit shall be ex- 
tended by any lessor bej'ond said period of sixty (60) days. 

(d) This Code shall not apply to leases between a parent com- 
pany and a wholly owned subsidiary, or between wholly owned 
subsidiaries of the same parent company, but this section shall not 
in any other respect exempt such parent company or wholly owned 
subsidiary from the provisions of this Code. 

(e) Tank cars actually used by railroads in emergency cases to 
protect life and property shall not be subject to the provisions of 
this Article VI. 

(f) Leases under bases 2 and 3 of this Article VI shall be in 
writing". Leases under basis 1 of this Article shall be made and 
the terms thereof defined before the car is loaded and shall, Avithin 
twenty-four hours after the making of the lease, be confirmed in 
writing by the lessor, who shall make it a condition of the trans- 
action that the lease shall be confirmed by the lessee within twenty- 
four hours after receipt by the lessee of confirmation from the 
lessor. 

Article VII — Participation 

Participation in the selection of the Code Authority, and in the 
benefits of its activities, and the N.R.A, insignia is governed by the 
provisions of Article V, Section 8, paragraph 2, hereof. 

Article VIII — Reports by Lessors 

With a view to keeping the President and Administrator in- 
formed as to the observance or non-observance of this Code, and 
as to whether the Industry is taking appropriate steps to effectuate 
in all respects the declared policy of the Act, each lessor shall pre- 
pare and file with the Code Authority bi-monthly a sworn state- 
ment that such lessor has not, subsequent to the effective date 
hereof, made, renewed, revised or extended any lease at rates below 
the Code minimum for supplying such tank cars, established pur- 
suant to the provisions of Article VI hereof. No such statement 
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. 

Article IX — Monopolies 

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

Article X — Unfair Trade Practices 

The following sluill constitute unfair trade practices and a vio- 
lation of this Code : 

(a) Cutting rentals for tank cars below the Code minimum, as 
established pursuant to the provisions of Article VI, hereof, or 
quoting rentals below such minimum; 



827 

(b) Giving, permitting to be given, or directly offering to give, 
an3'tliing of value for the purpose of influencing or rewarding the 
action of any employee, agent or representative of another in rela- 
tion to the business of tlie 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 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 ; 

(c) Purchasing or selling anything which any lessor may purchase 
from or sell to any lessee or prospective lessee at a price which, 
in effect would be equivalent to reducing the price of leasing tank 
cars below the Code minimum; 

(d) Rendering any service, not customarily rendered, at less than 
the cost of such service to the lessor ; 

(e) Inducing, or attempting to induce, by any means, any party to 
a contract with a lessor to violate such contract ; 

(f) Making any installment sale of used tank cars where in any 
purchase installment is less in amount than at the rate of the Code 
minimum as established under the provisions of Article VI hereof 
or wherein the maintenance of cars is at the seller's expense; 

(g) Purchasing, selling, assigning, loaning, or exchanging, or 
engaging in any transaction with reference to, any tank car for the 
purpose of evading this Code; 

(h) Paying the lessee more than the prevailing prices in the Amer- 
ican Raihvay Association Code of Rules for Interchange of Freight 
Cars for any repairs made by lessee for lessor's account; 

(i) Waiving any charge, or making any refund or allowance of 
any part of rental or mileage allowance which shall violate the pro- 
visions of Article YI, except that a pro rata refund or allowance on 
cars held for repairs for more than five (5) days after the day a car 
is placed in the shop for repairs may be made for any excess over 
five (5) days; 

(j) Painting or stenciling cars in excess of requirements in 
American Railway Association Specifications for Tank Cars when 
done by lessor for lessee for less than cost as such cost shall be es- 
tablished by the Code Authority; or making refund allowance to 
lessee for such painting or stenciling when done by lessee, 

(k) Furnishing or substituting any different size or type of tank 
car than that specified and charged for in any lease except in cases 
of emergency, and in all such exceptional cases a full explanation 
shall be immediately filed with the Code Authority through the 
Secretary of the Association ; 

(1) Permitting the subletting of lessor's cars without the written 
consent of lessor, or permitting any arrangement for the purpose 
of evading the Car Demurrage Rules as published in tariffs lawfully 
filed from time to time with the Interstate Commerce Commission; 

(m) Leasing or supplying any tank car to a railroad except for 
handling its own material, and then only if the arrangement with 
the railroad shall be evidenced in writing by an undertaking of the 
railroad not to permit the use of the car for any other purpose. 



328 
Article XI — Modification aad Amendment 

(a) This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of Section 10 (b) of the Act, from time to time to cancel or 
modify any order, approval, license, or rule or regulation issued 
under Title I of said Act and specifically to the right of the Presi- 
dent to cancel or modif}' his approval of this Code, or any condi- 
tions 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 modification to be based upon application to the Administrator, 
and such notice and hearing as he shall specify, and to become effec- 
tive on approval of the President; provided, however, that after the 
effective date of this Code, no modification, amendment, or elimina- 
tion of any provision thereof, nor any addition of any new provision 
thereto, shall be made (except by the President pursuant to the terms 
of the Act) unless approved both by a majority of the members of 
the Tank Car Service Association and of the members of the Asso- 
ciation representing companies owning and operating a majority 
of the cars represented in the Association. 

Article XII — Effective Date 

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

Article XIII 

The provisions of this Code shall be without prejudice to the 
exercise of any lawful jurisdiction or power of any lawfully con- 
stituted Federal or State regulatory body. 

Approved Code No. 439. 
Registry No. 1414-07. 

o 



Approved Code No. 440 
CODE OF FAIR COMPETITION 

FOR THE 

DOWEL PIN MANUFACTURING INDUSTRY 

As Approved on May 22, 1934 



ORDER 



Code of Fair Competition for the Dowel Pin MANurACTUEiNa 

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 Dowel Pin 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 :#:6543-A, dated December 
80, 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. R. Glangy, 

Division Administrator. 

Washington, D.C, 

May £2, WSJ,.. 

61925° 544-135 34 (829) 



KEPOKT TO THE PRESIDENT 

The PrEv<^ident, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Dowel Pin Industry, the hearing having been conducted in Wash- 
ington, D.C. on April 27, 1934 in accordance with the provisions 
of the National Industrial Recovery Act. 

PROVISIONS ON HOURS AND WAGES 

The maximum hours for employees provided in this Code are 
forty (40) hours per week and eight (8) hours per day. When pro- 
duction demands it, a tolerance of eight hours per week is allowed, 
provided this tolerance shall not be allowed for more than six weeks 
in any six months' period, and one and one-third times the normal 
hourly rate is paid for all hours in excess of forty per week. 

Employees engaged in emergency maintenance and repair work are 
excepted from hourly limitations and are allowed a one and one-third 
overtime rate of pay. Engineers, firemen and shipping clerks are 
permitted to work nine hours per day but provision is made that 
they shall be paid not less than one and one-third times the normal 
hourly rate for all hours in excess of forty-five per week. Watchmen 
are permitted to work fifty-six (56) hours per week. The usual 
exemption is granted to executive and supervisory employees regu- 
larly receiving $35.00 or more per week, and to outside salesmen. 

The minimum wage provided for employees is forty (40) cents 
per hour. 

CHILD LABOR 

The minimum age provided in this Code is 16 years but in hazard- 
ous occupations this age limit is increased to 18 years. 

ECONOMIC EFFECT OF THE CODE 

The annual sales in this Industry decreased 64 per cent from 1929 
to 1932. The Dowel Pin Industry is closely related to the Furniture 
Industry and, consequently, the volume of sales is to a great extent 
dependent on the activity in the Furniture Industry. From esti- 
mates made by members of the Dowel Pin Industry, when statistics 
for 1933 are compiled, an increase of approximately 39 per cent over 
the 1932 level is expected. 

The average work-week for the year 1933 Avas 35 hours per week 
and the maximum was 40 hours per week as compared with, 45 hours 
and 49 hours, respectively, in 1929. An increase in emplo\'ment in 
1934 has brought the average work-week to 40 hours. 

Minimum wages for the year 1933 were reported to be 26.3 cents 
per hour. The adoption of the proposed minimum wage rates is 

(330) 



331 

expected to cause an increase in the payrolls of the Industry, and 
this, tofTPther with the increase in average number of hours per work- 
Aveek Avill result in an estimated 75% increase of purchasing power 
over that of 1933. 

FINDINGS 

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

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of 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 industry normally employs not more than 50,000 em- 
plo3-ees; and is not classified by me as a major industr3\ 

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without 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 truly representative of the aforesaid industry; and that 
said association imposes no inequitable restrictions on admission to 
membership therein. 

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

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

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

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Admirvistrator, 
Mat 22, 1934. 



CODE OF FAIK COMPETITION FOR THE DOWEL PIN 
MANUFACTURING INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Re- 
covery Act, this Code is submitted as a Code of Fair Competition 
for the Dowel Pin Manufacturing Industry, and upon approval 
its provisions shall be the standards of fair competition for such 
Industry and be binding upon every member thereof. 

Article II — Definitions 

The term " Industry " as used herein includes the manufacture 
and original sale of dowel pins (round pieces of wood commonly 
used to join wood and other materials excluding, however, com- 
mercial dowel rods) in all stages of manufacture, and such related 
industries as may from time to time be included under the provi- 
sions of this Code. 

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

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

The term " employer " as used herein includes anyone by whom 
such employee is compensated or emploj^ed. 

The term "Association " as used herein shall mean the Dowel 
Pin Manufacturers Association. 

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

Article III — Hours 

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, with the follow- 
ing exceptions: 

(a) Engineers, firemen, and shipping clerks (who shall not be 
permitted to work, however, in excess of nine (9) hours in any 
twenty-four (24) hour period; provided, however, that such em- 
ployees who work in excess of forty-five (45) hours in any one 
week shall receive not less than one and one-third {IVs) times 
their normal rate of pay for all hours, or fractions thereof, in ex- 
cess of forty-five (45) in any one week. 

(332) 



333 

(b) Watchmen, who shall not be permitted to work in excess of 
fifty-six (56) hours in any one week. 

(c) In a peak period any employee may be permitted to work 
forty-eight (48) hours in any one week for not more than six (6) 
weeks in any six (6) months period. 

Section. 2. Co?npensafion for Overtime. — Any employee, except 
employees covered by subsections (a) and (b) of Section 1 of this 
Article who works in excess of forty (40) hours in any one week 
or eight (8) hours in any one day shall be compensated at the rate 
of not less than one and one-third (IVs) times his (or her) normal 
hourly rate for all such hours or fractions thereof. 

Section 3. Exceptions as to Hours. — The provisions of this Ar- 
ticle shall not apply to traveling salesmen, or to employees engaged 
in emergency maintenance or emergency repair work, or to persons 
employed in a managerial or executive capacity who earn regularly 
thirty-five dollars ($35.00) per week or more; provided, however, 
that employees engaged in emergency maintenance and emergency 
repair work shall be paid not less than one and one-third (IV3) times 
their normal hourly rate for all hours, or fractions thereof, worked 
in excess of eight (8) hours in any one day and/or forty (40) hours 
in any one week. 

Section 4. Maximunn Number of Days. — Xo emploj'ee shall be 
permitted to work more than six (6) days in any seven (7) day 
period. 

Section 5. Employment hy Several Employers. — Xo employer 
shall knowingly permit any employee to work for any time which, 
when added to the time spent at work for another employer or 
employers in this Industry (or otherwise), exceeds the maximum 
permitted herein. 

Section G. Employers Doing Wark Ordinarily Performed By 
Employees. — Any employer who does the work of an employee shall 
be subject to the provisions of this Code as to hours of labor to the 
extent permitted by the Act. 

Aeticle IV — Wages 

Section 1. Minimum Wages. — Xo employee shall be paid in any 
pay period less than at the rate of forty cents (40(;*) per hour. 

Section 2. Piece-Work Compensation — Minimum Wage. — This 
Article establishes a minimum rate of pay which shall apply regard- 
less of sex or of whether an employee is compensated on a time rate, 
piecework, or other basis. 

Section 3. ^Yag€ Adjust^nents. — ^AVithin sixty (60) days after the 
effective date hereof, employers shall adjust wage schedules in equit- 
able relation to the minimum hourly rates provided in this Article, 
so far as such adjustments have not been made subsequent to June 16, 
1933; but in no case shall hourly or weekly rates of pay be reduced, 
irrespective of whether compensation is actually paid on an hourly, 
weekly or other basis, nor shall any wages be less than at the mini- 
mum rates herein provided. Each member of the Industry shall 
promptly report all such adjustments to the Code Authority. The 
Code Authority shall promptly report all such adjustments to the 
Administrator. 



334 

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

Section 5. Handicapped Persons. — A person whose earning capac- 
ity is limited because of age or physical or mental handicap may be 
employed on light work at a wage below the minimum established 
by this Code if the employer obtains from the State Authority or 
other agency 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 or agency 
shall be guided by the instructions of The United States Department 
of Labor in issuing such certificates. 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 maximum hours oi work 
for such employee. 

Section 6. Manner of Payment. — Xo emploj^er shall make pay- 
ment due for services rendered except in the form of negotiable cur- 
lency or checks payable on demand, and no deduction shall be made 
except with the emploj^ee's assent or as required by Federal or State 
laws. Payment of all wages shall be at least twice in each calendar 
month. 

Ab'iicle V — General Labor Provisions 

Section 1. Child Lahor. — No jDerson under sixteen (16) years of 
age shall be employed in the industry. No person under eighteen 
(18) years of age shall be employed at operations or occupations 
which are hazardous in nature or dangerous to health. The Code 
Authority shall submit to the Administrator for approval Vvithin 
ninety (90) days after the effective date of this Code, a list of such 
operations or occupations. In any Stat^e 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 em- 
powered to issue employment or age certificates or permits showing 
that the employee is of the required age. 

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

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

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

Section 3. Evasion Through Subterfuge. — No employer shall re- 
classify employees or duties of occupations performed or engage in 
any other subterfuge so as to defeat the purposes or 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 employees during the 



335 

hours and at the, places of thoir employment. Standards for safety 
and health shall be submitted by the Code Authority to the Admiiiis- 
t ration for approval within six months after the effective date of 
the 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, healtli, sanitary or general working conditions, or 
insurance, or fire protection, than are imposed by this Code. 

Section G. Posthig. — All employers shall keep continuously posted 
copies- of this Code in conspicuous places accessible to all employees. 
Every member of the industry shall comply with all rules and reg- 
ulations relative to the posting of provisions of Codes of Fair Com- 
petition or otherwise which may from time to time be prescribed by 
the Administrator. 

Section 7. Complaint or Giving Evidence. — No employee shall be 
discharged because he has made complaint or given evidence with 
respect to an alleged violation of the Code. 

Section 8. Stabilization of Employment. — Each employer shall, 
to the best of his ability, so administer work in his charge as to pro- 
vide the maximum practical continuity of employment for his per- 
sonnel. Each member of the Industry shall mal<:e a study and submit 
a plan for regularization and stabilization of employment in his 
plant and shall submit such plan to the Code Authority. 

Section 9. Evasion Through Discharging and Rehiring or Replac- 
ing Employees. — Employees now employecl at wages above the mini- 
mum shall not be discharged and reemployed or replaced at a lower 
rate of pay, for the purpose of evading the labor provisions of this 
Code. 

Article VI — Organization — Powers and Duties or the Code 

Authority 

organization and constitution 

Section 1. A Code Authority is hereby established consisting of 
five (5) members to be selected in the following manner: 

(a) Three (3) members of the Code Authority shall be elected 
from among the members of the Association, and two (2) members 
of the Code Authority shall be elected from among non-members of 
the Association. 

(b) Within twenty (20) davs after the effective date of this Code, 
the Secretary of the Dowel r*in Manufacturers' Association shall 
call a meeting of the members of the Industry for the purpose of 
electing the Code Authority. Due notice of this meeting shall be 
sent by registered mail to every member of the Industry or such 
notice may be given by such other methods as will insure all members 
of the Industry being informed of such meeting, its purpose and the 
method of participation therein. Voting shall be by person, by 
mail, or by proxy. 

Section 2. In addition to membership as above provided, there 
may be not more than three members, without vote, to be known as 
Administration members, to be appointed by the Administrator to 
serve for such terms as he may specify. 



336 

Section 3. Each trade or industrial association directly or indi- 
rectly participating in tlie selection or activities of the Code Author- 
ity sliall (1) impose no inequitable restriction on membership, and 
(2) submit to the Administrator true copies of its articles of asso- 
ciation, bj^-laws, regulations, and amendments when made thereto, 
together with such other information as to membership, organization, 
and activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

Section 4. In order that the Code Authority shall at all times be 
truly representative of the industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe such 
hearings as he may deem proper ; and thereafter if he shall find that 
the Code Authority is not truly representative or does not in other 
respects comply with the provisions of the Act. may require an ap- 
propriate modification of the Code Authority. 

Section 5. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent or employee 
of the Code Authority. Nor sliall 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 wilful malfeasance or non- 
feasance. 

Section 6. If the Administrator shall at any time determine that 
any action of a Code Authority or any agency thereof may be unfair 
or unjust or contrary to the public interest, the Administrator may 
require that such action be suspended to afford an opportunity for 
investigation of the merits of such action and further consideration 
by such Code Authority or agency pending final action which shall 
not be effective unless the Administrator approves or unless he shall 
fail to disapprove after thirty (30) days' notice to him of intention 
to proceed with such action in its original or modified form. 

POAVERS AND DUTIES 

Section 7. Subject to such rules and regulations as may be issued 
by the Administrator, the Code Authority shall have the following 
powers and duties, in addition to those authorized by other provi- 
sions of this Code. 

(a^ To insure the execution of the provisions of this Code and to 
provide for the compliance of the industr}' with the provisions of the 
Act. 

(b) To adopt by-laws and rules and regulations for its procedure. 

(c) To obtain from members of the industry such information and 
reports as are required for the administration of the Code. In ad- 
dition to information required to be submitted to the Code Au- 
thority, 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; 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 



337 

individual report shall be disclosed to any other member of the 
industry or any other party except to such other Governmental 
agencies as may be directed by the Administrator. 

(d) To use sucli trade associations and other agencies as it deems 
proper for the carr3nng 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 
coordination of the administration of this Code with such other 
codes, if any, as may be related to or atfect members of the industry. 

(f) (1) It being found necessary to support the Administration 
of this Code, in order to effectuate the policy of the Act and to 
maintain the standards of fair competition established hereunder, 
the Code Authority is authorized: 

(a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes and to meet such obli- 
gations out of funds which shall be held in trust for the 
purposes of the Code and raised as hereinafter provided ; 

(b) To submit to the Administrator for his approval, subject 

to such notice and opportunity to be heard as he may 
deem necessary; 

1. An itemized budget of its estimated expenses for the 

foregoing purposes, and 

2. An equitable basis upon which the funds necessary to 

support such budget shall be contributed by all mem- 
bers of the Industry entitled to the benefits accruing 
from the m.aintenance of such standards, and the admin- 
istration thereof. 

(c) After such budget and basis of contribution have been 

approved by the Administrator, to determine and collect 

equitable contributions as above set forth, and to that 

end, if necessar}', to institute legal proceedings therefor 

in its own name. 

(2) Each member of the industry shall be liable for his or its 

equitable contribution to the expenses of the maintenance of the 

Code Authority as hereinabove pro\aded. Only members of the 

industry complying with the Code and making such contribution 

shall be entitled to participate in the selection of the members of the 

Code Authority or to receive the benefits of its voluntary activities 

or to make use of any N.R.A. insignia. 

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

(h) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provisions 
to govern members of the industry in their relations with each 
other or with other industries; measures for industrial planning, 
and stabilization of employment; and including modifications oi 
this Code which shall become effective as part hereof upon approval 
by the Administrator after such notice and hearing as he may 
specify. 



338 

(i) To appoint a Trade Practice Committee which shall meet 
with the Trade Practice Committees appointed under such other 
codes as ma}' be related to the industr}^ for the purpose of formulat- 
ing fair trade practices to govern the relationships between employers 
under this code and vmder such other codes to the end that such 
fair trade practices may be proposed to the Administrator as amend- 
ments to this Code and such other codes. 

(j) To provide appropriate facilities for arbitration, and subject 
to the approval of the Administrator, to prescribe rules of procedure 
and rules to effect compliance with awards and determinations. 

Article VII — Trade Practice Kules 

Rule 1. Inaccurate Advertising. — Xo member of the industry 
shall publish advertising (whether printed, radio, displaj' or of any 
other nature), which is misleading or inaccurate in any material 
particular, nor shall any member in any way misrejDresent an}- goods 
(including but without limitation its use, trademark, grade, quality, 
origin, size, substance, character, nature, finish, material content 
or preparation) or credit terms, values, policies, services, or the 
nature or form of the business conducted. 

Rule 2. False Billing. — No member of the industry shall know- 
ingly withhold from or insert in an}' quotation or invoice any 
statement that makes it inaccurate in any material particular. 

Rule 3. Iruiccurate Lahelling. — Xo member of the industry shall 
brand, or mark, or pack any goods in any manner which is intended 
to or does deceive or mislead purchaser with respect to the brand, 
grade, quality, quantity, origin, size, substance, character, nature, 
finish, material content or preparation of such goods. 

Rule 4. Defamation. — Xo member of the industry shall defame 
a competitor by falsely imputing to him dishonorable conduct, 
inability to perform contracts, questionable credit standing, or by 
other false representation, or by falsely disparaging the grade or 
quality of his goods. 

Rule 5. Threats of Law Suits. — Xo member of the industry shall 
pubhsh or circulate unjustified or unwarranted threats of legal 
proceedings which tend to or have the effect of harrassing competi- 
tors or intimidating their customers. 

Rule 6. Secret Rebates. — Xo 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, 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. 

Rule 7. Commercial Bribery. — Xo member of the industry shall 
give, permit to be given, or offer to give, an}i;hing 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, prin- 
cipal or party. This provision shall not be construed to prohibit 
free and general distribution of articles commonly used for ad- 



339 

vertisin<T except so far as such articles arc actually used for com- 
mercial bribery as hereinabove defined. 

fluLE 8. Inducing Breach of Existing Contracts. — No member of 
the industry shall wilfully induce or attempt to induce the breach 
of existing contracts between competitors and their customers by 
any false or deceptive means, or interfere with or obstruct the per- 
fornuince of any such contractual duties or services by any such 
means with the purpose and effect of hampering, injuring or em- 
barrassing competitor in their business. 

Rule 9. Coercion. — No member of the industry shall require that 
the purchase or lease of any goods be a prerequisite to the purchase 
or lease of any other goods. 

Rule 10. Destructive Price Cutting. — 

(a) The Principle. — 

(i) Destructive price cutting is an unfair method of competition 
and is forbidden at all times, irrespective of the existence of an 
emergency : 

(ii) When no declared emergency exists as to any given product, 
there is to be no fixed minimum basis for prices but it is intended 
that sound cost estimating methods should be used ; 

(iii) When an emergency exists as to any given product, sale be- 
low the lowest reasonable cost of such product, in violation of sub- 
section (c) hereof, is forbidden. 

(b) Uniforjii Cost Accounting. — The Code Authoritv shall cause 
to be formulated an accounting system and methods oi cost finding 
and/or estimating capable of use by all members of the Industry and 
shall submit such S5'^stem and methods to the Administrator for re- 
view and approval. After such system and methods have been 
formulated and approved by the Administrator, full details con- 
cerning them shall be made available to all members. Thereafter 
it is intended that all members should utilize the principles of such 
system or methods. 

(c) Emergency {Lowest Reasonable Cost). — When an emergency 
exists, the Code Authority may cause an impartial agency to inves- 
tigate costs and to determine the lowest reasonable cost of the product 
affected by the emergency. Such determination shall exclude all 
cost elements set forth in and shall be in all respects subject to such 
rules and regulations as may be issued by the Administrator and 
subject to his approval or modification after such notice and oppor- 
tunitv to be heard as he may prescribe. The Code Authority or the 
Administrator may, from time to time, cause such determinations 
to be reviewed or reconsidered and appropriate action taken. 

(d) Definitions. — ^An " Emergency " exists whenever the Adminis- 
trator determines that destructive price cutting is rendering in- 
effective or seriously endangering the maintenance of the provisions 
of this Code. 

(i) "WTien no emergency exists, the terms shall have the meaning 
declared in rules and regulations promulgated by the Administrator 
on recommendation of the Code Authority or on his own motion; 

(ii) When an emergency exists, the term shall mean any sale in 
violation of subsection (c) hereof; 

(iii) It shall be an absolute defense to any charge of destructive 
price cutting, if an impartial agency, designated or approved by the 
Administrator, shall find, 



340 

(aa) That the price complained of is justified by existing compe- 
tition, evidence of which has been reported to the Code Authority: 

(bb) Tliat the price complained of is justified as a method oi 
disposal of dropped lines or seconds, or 

(cc) When no declared emergency exists, that the member charged 
with destructive price cutting has in good faith endeavored to 
make proper use of the announced cost estimating methods. 

Rule 11. Published Prices. — Each member of the Industry shall 
file with the Code Authority on a date specified by the Code Au- 
thority, after reasonable notice, net price sheets, or price lists and 
discount sheets, individually prepared by him, and all terms and 
conditions of sale relating thereto. Such net price sheets, or price 
lists and discount sheets, and/or terms and conditions of sale shall 
become effective immediately upon receipt by the Code Authority. 
Any member of the Industry may file revisions of his net price 
sheets, or price lists and discount sheets, and/or terms and condi- 
tions of sale which shall become effective immediately upon their 
receipt by the Code Authority. No member of the Industry shall 
sell or offer for sale any product of the Industry at prices other than 
those noted in the net price sheets, or price lists and discount sheets, 
and/or on terms and conditions of sale other than the terms and 
conditions of sale last filed by such member with the Code Authority 
in accordance with the provisions of this Article and in effect at 
the time of such sale. All filed effective price lists as provided in this 
Rule shall be open to the inspection oi buyers as well as sellers as 
they may be concerned. 

Article VIII— Export Trade 

Section 1. No provision of this Code relating to prices or terms 
of selling, shipping or marketing, shall apply to export trade or sale 
or shipments for export trade. " Export Trade " shall be defined as 
in the Export Trade Act adopted April 10, 1918. 

Aritcle IX — Modification 

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

Section 2. Such of the provisions of this Code as are not required 
to be included herein by the Act may, with the approval of the 
Administrator, be modified or eliminated in such manner as may be 
indicated by tne 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 June 16, 1935. 

Article X — Monopolies, Etc. 

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



341 

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

Article XII — ErrECTi\'E Date 

This Code shall become effective on the Tenth day after its ap- 
proval by the Administrator. 



ApproTed Code No. 440. 
Registry No. 330—04. 



o 



Approved Code No. 441 

CODE OF FAIR COMPETITION 

FOR THE 

BIAS TAPE INDUSTRY 

As Approved on May 23, 1934 



ORDER 

Code of Fair Competition for the Bias Tape Industry 

All 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 Com])etition for the Bias Tape Industry, and hearings having 
been duly held thereon and the annexed report on said Code, con- 
taining findings with resiject thereto, having been made and directed 
to the President; 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. G543-A, dated December 
30, 1933. and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and 
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 far Industrial Recovery. 

Approval recommended : 
H. O. King, 
Division Administrator. 

Washington, D.C, 

May 23, 1934. 

61924° 544-134 34 (343) 



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 Bias Tape Industry, held in the Pan American 
Room of the Mayflower Hotel, Washington D.C., on December 13, 
1033. The Code, which is attached, was presented by duly qualified 
and authorized representatives of the Industry, complying with 
statutory requirements, said to represent all concerns in 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 INDl STRY 

The Industry comprises ninet<»en (19) concerns having an in- 
vestment in 1933 of $1,303,000.00. In 1929 the Industry employed 
7-1:0 workers. This figure has declined to about 010 employees in 
1933. Aggregate annual sales declined from 0,912,000 dozen in 
1929 to 3.244,000 dozen in 1933. 

PKOVISIONS OF THE CODE 

The Code provides for a minimum wage of 321/0^ per hour except 
that learners during a thirty day apprenticeship shall be paid not 
less than 80 per cent of the minimum wage. Learners are limited 
to five (5) per cent of the total number of employees. The Code 
further provides that it shall be the policy of the members of the 
Industry not to reduce compensation in excess of minimum wages 
set forth in the Code, notwithstanding that the hours worked in 
such emploj^ment maj' be reduced. 

Hours of work for clerical and office emplo^^ees are limited to 40 
hours a vreek averaged over a period of three months. Hours of 
work for all other employees are limited to 40 hours a week and 
eight hours a day with the following exceptions : 

Maintenance employees are permitted to work 44 hours per week 
providing that time and one-third is paid for all hours in excess 
of 40 hours per week; 

"Watchmen are permitted to work 42 hours per week averaged 
over a period of two weeks provided they do not work more than 
48 and 30 hours in alternate weeks; 

Emploj^ees engaged in a supervisory capacity and receiving $35.00 
or more per w?ek, and outside salesmen are not limited as to hours ; 

Employees engaged in emergency maintenance or repair work are 
excepted from the maximum hour provisions but shall be paid time 
and one-third for all hours in excess of 40 hours per week. 

Representation on the Code Authority is provided for all mem- 
bers of the Industry. The Code provides for an open price associa- 

(344) 



345 

tion in tlio Iiulustry but i)i'iniits })rices to be revist'd without a 
M'aitini*; period. Sales below the individual cost to the members of 
the Inchistry are prohibited, hoAvever, sales may be made below cost 
to meet the lower price of a competitor or to sell dama<j:ed goods or 
discontinued lines of merchandise. The Code also provides for the 
cstablislunent of a standard system of cost linding to be used by all 
member^ of the Jiuhistry after approval by the Administrator. 

FINDINGS 

The Deputy Administrator in his final report to me (m said Code 
having found as herein set forth and on the basis of all the 
})roceedino:s in this matter: 

I find that: 

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

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

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

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

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

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

For these reasons, this Code of Fair Competition for the Bias 
Tape Industry, has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
Mat 23, 1934. 



CODE OF FAIR COMPETITION FOR THE BIAS TAPE 

INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title 1 of the National Industrial 
Recovery Act this Code is established as a Code of Fair Competi- 
tion for the Bias Tape Industry and its provisions shall be stand- 
ards of fair competition for such Industry and shall be binding 
Upon every member thereof. 

Article II — Dei i n itioxs 

1. The term " Bias Tape Industry '' or " Industry " as used herein 
includes the manufacture and sale by the manufacturer of bias tape 
for household use and such related branches or subdivisions as may 
from time to time be included under the provisions of this Code by 
the President of the United vStates, after such notice and hearing as 
he may prescribe. 

2. The term '•■ member of the Industry " includes, but without limi- 
tation, any individiuil, partnership, association, corporation, or other 
form of enterprise engaged in the Industry, either as an employer 
or on his or its own behalf. 

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

4. The term '* employer " as used herein includes any person, firm, 
corporation or other form of enterprise engaged in the Industry, 
who or which engages in his or its business employees as defined 
above. 

5. The term "' learner " as used herein, includes any and all em- 
ployees who have had less than thirty (30) days' experience or 
employment in the Industry. 

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

Article III — Hours 

1. No emplo3'ee, except as herein otherwise provided, 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. 

2. No person employed in clerical or office Avork shall be permitted 
to work in excess of forty (40) hours in any one week averaged over 
a period of hve (5) weeks, nor more than twelve (12) hours in any 
twenty-four (24) hour period. A normal work day shall not exceed 
eight (8) hours. 

(346) 



347 

3. Repair shop crews, en<2:inecrs, electricians, firemen, shipping 
crews, outside workers and/or cleaners shall not be permitted to 
work in excess of forty-four (44) hours per week, provided, however, 
tluit all employees included in this Section shall receive at least one 
and one-third times their normal rate of pay for all hours worked 
in excess of forty (40) hours per week. 

4. "Watchmen may be employed in paii's working thirty-six (H6) 
and forty-eight (48) hours on alternate weeks, or an average of 
forty-two (42) hours per week over a two-weeks period. 

5. The provisions of this Article shall not apply to persons em- 
])loyed in a managerial or executive capacity who receive thirty-five 
dollar.s ($S5.00) or more per week, nor to connnercial traveling sales- 
men nor to employees engaged in emergency maintenance or emer- 
gency repair work, ])rovided. however, that all such employees en- 
gaged in emergency maintiMiance or emergency repair work shall 
receive at least one and one-third times their normal rate of pay for 
all iiours worked in excess of forty (40) hours per week, and that 
such overtime work shall be reported to the Code Authority. 

6. No employee shall be permitted to work for a total number of 
hours in excess of the nmnber of houi's pre.scrilx'd herein whether 
he be employed by one or more employers. 

Article IV — Minimum Wages 

1. No employee, except as hereinafter provided, shall be ])aid at a 
rate of less than thirty-two and one-half (liSVo) cents ])er hour. 

2. No learner shall be paid at a rate of less than eighty j)er cent 
(80%) of the minimum established herein and the total number of 
such person.s so employed by a member of the Industry shall not, in 
any case, exceed one in number or five per cent (;Vv ) of the total 
innnber of such member's employees, whichever is the higher. The 
])eriod of learning shall be limited to thirty (30) days whether 
served under one or more employers. 

3. P>male employees performing substantially the same work as 
male employees shall receive the same rates of pay as nude employees. 

4. A person whose earning ca])acity is limited because of age or 
]>h3^sical or mental handicap nuiy 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 em- 
])k)yment at such wages and for such hours as shall be stated in 
the certificate. Each employer shall file monthly with the Code 
Authorit}^ a list of all such persons employed by him, showing the 
wages paid to, and the maximum hours of work for such employee. 

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 performance or other liasis. 

6. It is the policy of the members of this industry to refrain from 
reducing the compensation for employment which compensation 
was, prior to June IG, 1933, in excess of the minimum wages herein 
set forth, notwithstanding that the hours of work in such employ- 
ment may be reduced; and, unless since such date such adjustments 
have been made all members of this industry shall endeavor to in- 



348 

crease the pay of all employees in excess of the minimum wage, as 
herein set forth, by an equitable adjustment of all pay schedules. 

Article V — General Labor Provisions 

1. No person under sixteen (IG) years of age shall be employed in 
the industry. No person under eighteen (18) years of age shall be 
employed at operations or occupations which are hazardous in nature 
or dangerous to health. The Code Authority shall submit to the 
Administrator within sixty (60) days after the effective date of 
this Code a list of such operations or occupations. In any State 
an employer shall be deemed to have complied with this provision as 
to age if he shall have on file a certificate or permit duly signed by 
the Authority' in such State empowered to issue employment or age 
certificate 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 I'ight 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 mutiud aid or protection; 

(b) That no employee and no one seeking emploj'ment shall be 
required as a condition of employment to join any company union or 
to refrain from joining, organizing, or assisting a labor organiza- 
tion of his 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 occupa- 
tions performed or engage in any other subterfuge for the purpose 
of defeating the purposes or provisions of the Act or of this Code. 

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 Au- 
thority to the Administrator within six months after the effective 
date of this Code. 

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, sani- 
tary or general working conditions, than are imposed by this Code. 

G. All employers shall post and keep posted com])lete copies of the 
wage and hour and general labor provisions of this Code in con- 
spicuous places accessible to employees, and shall comply with all 
rules and regulations relative to the posting of provisions of Codes 
of Fair Competition which may be prescribed by the Administrator 
from time to time. 

Article VI — Organization, Powers and Duties or the Code 

Authority 

1. A Code Authority is hereby established to cooperate with the 
Administrator in the administration of this Code and shall consist 



349 

of six (6) members or such other number as may be a|)pr(>ved from 
time to time by the Administrator. Five (5) members of the Code 
Authority shall be chosen through a fair method of selection ap- 
proved by the Administrator, by the members of the Bias Tape 
Institute ; and one member may be chosen through a fair method of 
selection approved by the Administrator, by those members of the 
Industry who are not also members of the Bias Tape Institute. The 
Administrator in his discretion may appoint not more than three (3) 
adtlitional 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 par- 
ticipating in the selection or activities of the Code Authority shall 
impose no inequitable restrictions on membership and shall submit 
to the Administrator true copies of its articles of association, by-laws, 
regulations, and any amendments when made thereto, together with 
such other information as to membership, organization, and activi- 
ties as the Administrator may deem necessary to effectuate the pur- 
poses of the Act. 

3. In order that the Code Authority shall at all times be truly 
representative of the Industry and in other res^^ects 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. It being found necessary, in order to support the Administra- 
tion of this Code and to maintain the standards of fair competiti(m 
established by this Code and to effectuate the policy of the Act, the 
Code Authority is authorized, subject to the approval of the 
Administrator : 

(a) To incur such reasonable obligations as are necessary and 
pro])er for the foregoing purposes and to meet such obligations out 
of funds which may be raised as hereinafter provided and Avhich 
shall be held in trust for the purposes of the Code ; 

(b) To submit to the Administrator for his approval, subject 
to such notice and opportunity to be heard as he may de?m necessary, 
(1) an itemized budget of its estimated expenses for the foregoing 
purposes, and (2) an equitable basis upon which the funds necessary 
to support such budget shall be contributed by members of the 
Industry ; 

(c) After such budget and basis of contribution have been ap- 
proved by the Administrator, to determine and secure equitable 
contribution as above set forth by all such members of the Industry, 
and to that end, if necessary, to institute legal proceedings therefor 
in its own name. 

Only members of the Industry compljdng with the Code and con- 
tributing to the expenses of its administration as provided above 
shall be entitled to participate in the selection of the members of the 
Code Authority or to receive the benefit of its voluntary activities or 
to make use of any emblem or insignia of the National Recovery 
Administration. 



350 

5. If the Adiiiiiiistrator shall determine that any action of the 
Code Autiiority 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<ration 
of the merits of such action and further consideration by the Code 
Authoiity or a^^ency pending final action Avhich shall not be effective 
unless the Administrator a])proves or unless he shall fail to dis- 
approve after thirty (3U) days' notice to him of intention to proceed 
with such action in its original or modified form. 

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

(a) To administer the provisions of this Code, provide for the 
compliance of the Industry with the provisions of the Act under 
such rules and regulations as may be ]:)rescribed by the Adminis-- 
ti"ator; and to propose and submit to the Administrator its recom- 
mendations for amendments and /or modifications of this Code which 
fthall become effective as a part of this Code when a])proved by the 
Administrator after such notice and hearing as he may specify. 

(b) To adopt by-laws and rules and regulations for its pi-ocedure 
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 infor- 
mation and reports as the Administrator may deem necessary for 
the purposes recited in Section 3 (a) of the Act, which information 
and reports shall be submitted by members to such administrative 
and/or government agencies as the Administrator may designate; 
provided that nothing in this Coi^le shall relieve any member of the 
Industry of any existing obligations to furnish reports to any gov- 
ernmental agency. No individual reports shall be disclosed to any, 
other member of the Industry or any other party except to such 
governmental agencies as may be directed by the Administrator. 

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

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

(f) To cooperate with the Administrator in regulating the use 
of any X.R.A. insignia, which is used solely by those members of 
the Industry who have assented to, and are complving with, this 
Code. 

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

(h) To cooperate with the Administrator in making investigations 
as to the functioning and observance of any of the provisions of this 
Code, at its OAvn instance or on complaint by any person affected, 
and to report same to the Administrator. 



351 

(i) To provide for and adopt standards for the products of this 
Industry which, when approved by the Administrator, shall be 
observed by all members of the Industry. 

Article VII — Accounting and Selling 

1. The Code Authority shall proceed to formulate a method of 
cost finding which shall contain the principal elements of cost 
and shall be capable of uniform application within the Industry, 
Within thirty (80) days after such cost finding method shall have 
been approved by the Administrator each member of the Industry 
shall adopt the same as a basis for determining his own individual 
cost. 

2. No member of the Industry shall sell any oi the products of 
this Industry below his own individual cost except to meet bona fide 
competition in any specific instarice, provided, liowever, that nothing 
contained herein shall be construed to prevent the sale of damaged 
goods, job lots, and discontinued lines below the cost of production 
after such merchantlise is clearly invoiced as such and a complete 
record thereof is kei)t by the seller, which shall be promptly for- 
Avarded to the Code Authority upon request. 

3. Each member of the Industry shall file with the Code Authority 
within fifteen (15) dayn after the effective date of this Code his 
schedule of prices, discounts, and terms of sale to all classes of trade 
ft)r the products of this Industry, except damaged goods, job lots 
and discontinued lines. No member of the Industry shall sell his 
products at a price lower or at discounts greater or on terms more 
favorable than those set forth in his schedule currently filed with 
the Code Authority. 

(a) Any member of the Industry may revise his price lists or 
terms of sale at any time by filing with the Code Authority such 
revised price lists or terms of sale which shall become effective im- 
mediately upon filing. All such price lists and/or terms of sale shall 
be available to all members of the Industry or to any other interested 
party who may apply for same. 

(b) In the event any member of the Industry contemplates a 
change in his prices, no information relative thereto shall be given 
to customers or salesmen, directly or indirectly, prior to the date 
when such change becomes effective. 

Article VIII — Trade Practices 

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

2. No member of the Industry shall willfully brand or mark or 
pack any goods in any manner which is intended to or does deceive 
or mislead purchasers with respect to the brand, grade, quality, 



352 

quantity, origin, size, substance, character, nature, finish, material 
content or preparation of such goods. 

3. 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. Avhether in the form of money 
or otherwise, nor shall a member of the Industry secretly offer or 
extend to any customer special service or privilege not extended to 
all customers of the same class, for the purpose of influencing a sale. 

4. No member of the Industry shall pre-date or post-date any order 
or contract with the intent or having the effect of giving to either 
the buyer or seller any advantage or benefit which would not accrue 
if such order or contract were correct)}' dated. 

5. Xo member of the Industry shall accept " make and hold " 
orders for bias tape for home use except as contracts under which 
the buyer shall accept delivery of the full quantity specified within 
the contract period. 

6. No member of the Industry shall willfully induce or attempt 
to induce the breach of any contract between a competitor and his 
customer or willfully interfere with or obstruct the })erformance of 
the same. 

7. No member of the Industry shall apply a larger quantity price 
to an order or shipment covering smaller quantities, or in any other 
way depart from his published and established quantity differentials. 

8. Free deals, premiums, or other similar schemes shall not be used 
unless the price of the entire deal is at least equal to the regular 
net list price of the bias tape plus the price of other merchandise 
involved in the transaction. This shall not prohibit the distribution 
of cabinets or other display material of a strictly advertising nature. 

9. 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. 

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

11. No member of the Industry shall give discounts greater than 
three percent (3%) ten (10) da3's e.o.m. or two percent (2%) ten 
(10) clays, sixty (GO) days extra. 

12. No member of the Industry shall ship any products of this 
Industry on consignment, except to a bona fide sales agent. 

Article IX — Modification 

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



353 

2. This Code, except as to provisions required by the Act, may be 
iiKKlified or amended on the basis of experience or chan<2,es in circum- 
stances, such modifications or ameiuhnents to be based ui)on applica- 
tion to the Administrator and sucli notice and heariui^ as he shall 
specify, and to become elfective on approval of the President, unless 
otherwise provided. 

Airrici.K X — Puick Incre':ases 

Whereas the policy of the Act to increase real i)urchasintjj power 
will be made more difficult of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price in- 
creases except as such as may be required to meet individual cost 
should be delayed, but when made such increases should, as far as 
possible, be limited to actual additional increases in the seller's costs. 

Aktic LE XI — Effective Date 

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



Approved Code No. 441. 
Registry No. 251-09. 



O 



Approved Code No. 442 
CODE OF FAIR COMPETITION 

FOR THE 

LEAD INDUSTRY 

As Approved on May 24, 1934 



ORDER 



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

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

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
K. M. Simpson, 

Division Adininistrator. 

Washington, D.C, 

May U, 1931^. 

62288° 544-140 34 (855) 



KEPORT TO THE PRESIDENT 

The President, 

Tlie White House. 

Sir : The original Code of Fair Competition for the Lead Industry 
was submitted on August 3rd, 1933, by the Lead Industries Associa- 
tion, an unincorporated membership society organized in 1928 rep- 
resenting 90% of the laiown members of the Industry in volimie of 
production. Several revisions of the Code were made prior to the 
I^ublic hearing held on December 22nd, 1933. 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 prop- 
erly heard in accordance with statutory and regulatory requirements. 

The Lead Industries includes the development, mining, concen- 
tratintr, smelting, and refining of lead-bearing ores, and the utiliza- 
tion of the products. By far the largest product of the refining 
process is pig lead, normally about 97% of total mine production. A 
small amount of pigments are made direct from ore. 

The major products of the lead industries are pig lead, antimonial 
pig lead, lead pigments, manufactured metallic lead products, and 
manufactured metallic foil products. 

The lead code covers the Lead Industries in every phase enumer- 
ated above except storage battery plates and lead covered cable. The 
storage battery plate business came in with the addition of starters 
for automobiles but has become a revolving supply, as was prophe- 
sied at its inception, the use of new lead for battery plates per year 
not representing over 10% of the lead used at present for that pur- 
pose. The quantity of lead covered cable used is dependent on the 
status of telei^hone and electric companies. 

Lead pigments, used in the paint and varnish business, are mado 
from ores, pig lead, and scrap, but chiefly from pig lead. Lead 
pigments are sold in a highly competitive field with zinc pigments, 
titanium oxide paint, and stainless alloy steels. Foil has to meet the 
competition of cellophane. 

Undesilvcred soft pig lead containing relatively high copper is 
extremely resistant to corrosion by acids and is known to the trade 
as chemical lead ; it is used chiefly in the manufacture of cable, pipe 
and sheets. 

Lead mining and smelting is mainly located in the states west of 
the Mississippi River and, with the exception of the district in south- 
east Missouri, is closely associated with the mining of other motals. 
Consequently, code provisions for lead, zinc, and copper, will often 
be closely inter-related. 

All the lead industries included in the Code have suffered greatly 
during the depression, particularly the mining industry, which has 
witnessed a drop in the price of pig lead in the United States, carry- 
ing it in 1932 to a lower level than has been observed for at least 
fifty years, namely, 2.G50 per pound. New York. 

(356) 



357 

From 19-29 to 1932, the contribution of the United States to the 
total world output of primary refined lead decreased from 36% to 
22%. As the ITnited States is a small net importer of lead, the 
actual and relative decline was primarily due to a decrease in 
domestic consumiotion. 

Lead is a comparatiA^ely low-priced metal whose major uses are 
for })ifrments. cable covers, storage batteries, building, ammunition 
and various alloys. Its principal competitor is zinc, particularly in 
the pigment industrie^^;. About 20% of total normal consumption 
is destroyed in use; the remainder represents possible ultimate re- 
covery and re-use. The recovery of secondary lead is an important 
factor in demand for new lead. The rapid development of the 
storage battery demand for lead served to stimulate mine capacity 
and new production, but more recently the annual recovery of lead, 
so used, has reduced the demand for new lead for this purpose to 
a relatively small factor. 

Total consumption of lead in 1933 was only about 40% of the 
1929 demand. In spite of a rapid decline in mine production, stocks 
have been built up until they may be considered excessive in view 
of the present low rate of consumption. 

The number employed in the lead industries is about 50% of the 
total for 1929, or a decrease of some 14,000. The amount of work 
for those actually employed has decreased, due to the spreading of 
available work. Increased employment is dependent on improve- 
ment in the construction, automobile and electrical industries. 

The production of refined primarv lead in the United States de- 
clined from 637.000 metric tons in i929 to 251,000 tons in 1932, or 
from 36% of the world production to 22%. The decline in produc- 
tion for the rest of the world in the same period was from 1.149,000 
metric tons to 906.000 tons. The corresponding percentage of world 
total showed an increase from 64% to 78%. In other words, the 
maior decline in world output occurred in the United States. 

Since the United States has no net export of lead but is a com- 
paratively small net importer, the real cause of the decline in 
United States' production is due primarily to a decline in domestic 
consumption. 

Under the tariff provision of 1922, still in force, a duty of 11^0 
per pound of lead content was placed on imported ores, 2i/^(* per 
pound on lead bullion. 2%0 per pound on lead sheets, and duties 
ranging from 21/^0 to 3^ per pound on lead pigments. 

The tariff protects the lead industry of the United States from 
heavy imports from Mexico and Canada. Because of competition 
within the United States, the price differential at New York over 
London exceeds the tariff on ores but does not reach the tariff on 
lead bullion, lead sheets, and lead pigments. 

From a standpoint of labor at refineries, the decrease in exports is 
likewise reflected in the decrease of imported ores and base bullion, 
meaning less refinery capacity used. The United States formerly 
imported much lead in various forms, principall}" in ore and base 
bullion, and continues to import small quantities. Some of it entered 
for immediate consumption; most of it, however, is entered for 
warehouse, is smelted and refined in bond, and is then reexported 
as refined pig lead or in manufactured products. 



358 

These relatively large former exports have been captured by 
Australia and Canada by the imposition of a 10% tariff on non- 
British lead imported into Great Britain. United States' exports 
of lead have dropped from 116,260 tons of pigs, bars, and secondary 
in 1928 to 22,500 tons in 1933. 

The quantity of lead in all forms consumed by domestic industry, 
as estimated by the American Bureau of Metal Statistics, was 
648,000 short tons in 1919, had reached 901,000 tons in 1926, was 
972,000 tons in 1929, and steadily declined to 400,000 tons in 1932. 

The three principal uses of lead in the United States are cable 
covering, storage batteries, and v\diite lead. In 1929, according to 
the American Bureau of Metal Statistics, these three outlets used: 
cable covering, 206,000 tons; storage batteries, 210,000 tons; white 
lead, 119,700 tons; total of the three, 535,700 tons of a total of 
930,000 tons used for all purposes; in 1932, cable coverings used 
were 55,000 tons; storage batteries, 138,000 tons; white lead, 54,500 
tons; total of the three, 247,500 tons of a total of 400,000 tons used 
for all purposes. Kevival of the market for lead-covered cable 
cannot be expected until there is a renewed expansion in the use 
of the telephone and electric industries. 

Large stocks of lead have been accumulated during the depression 
and now amount to more than a year's supply at present rate of 
consumption. These unsold accumulations are tangible evidence of 
the strenuous efforts and gi'eat financial sacrifices mining and smelt- 
ing companies have made to keep their employees at work. 

Mining companies have keenly realized their responsibilities in 
sharing work among their employees and relieving suffering in the 
mining camps, especially where mines are the only source of em- 
ployment. The lead mines never cut wages to the extent justified 
by the extraordinary low price obtained for lead in 1932 and 1933 
and after the enactment ot the N.I.R.A., spread work still further, 
making wage increases which they hoped would be justified by the 
development of the Administration's Recovery program. 

The mining industry, as a result of a distressed lead market, is 
working approximately 46% of its 1929 rate of production and 
there is no prospect of any increase in this rate unless the price of 
lead should advance. 

In 1929 the member mining companies in the Lead Industries 
Association employed 8,450 persons. In 1933, despite the low rate 
of production, they were engaging 5,500 empioj^ees, a number which 
was increased to 5,650 after the P.R.A. program was put into effect. 

As reported by the American Bureau of Metal Statistics, and 
quoted by the U.S. Bureau of Mines, stocks of refined lead and 
antimonial lead have risen steadily from 51,050 short tons at the 
end of 1929 to 103,000 tons at the end of 1930, to 152,000 tons at 
the end of 1931, to 176,000 tons at the end of 1932, and to 203,000 
tons at the end of 1933. These stocks (four times as much at the 
end of 1933 as at the end of 1929) represent at least a six-months' 
supply on the basis of the best figures obtainable of the consump- 
tion of lead for the year 1932; and have accumulated despite a 
progressive decrease in mine production of recoverable lead from 
mines from 648,000 tons in 1929 to 558,000 in 1930; to 405,000 tons 
in 1931; to 293,000 tons in 1932; and to 274,000 tons in 1933. 



359 

Tlie total employment in the Lead Industries cominp; under this 
Code, Avas approximately 28,000 in 1929. About three-fourths of 
the total are employed in the closely associated mining and smelting 
operations. 



Division 



Total em- 
ployed 



Wage 
earners 



Mining and milling 

Smelting and Refining (primary) 
Fabricating. 

Total 



15, 004 
6,690 
6,873 



27, 567 



14, 007 
4,819 



The general level of operations in the Industry, judged by produc- 
tion and consumption data, fell in 1933 to about 40% of the rate in 
1929. Labor requirements probably declined in about the same 
proportion, but the actual number employed at the end of 1933 was 
about 50% of the number in 1929 (according to the results of a sur- 
vey, made by the Lead Industries' Association) , which covered from 
85% to 90% of the Industry. 

The Code, as written, follows the latest standard code provisions. 
It contains no open price clause for Pig Lead and Metallic Lead 
products and no provisions relating to cost of production in relation 
to selling price. No definite control of production or stabilization 
of the industry is set up, although provision is made in Article VI, 
Section 6, Paragraph G, that such proposals may be recommended, 
after voluntary agreement, to the Administrator. 

A basic maximum 8 hour day and 40 hour week is provided, with 
such standard exceptions as are common to other codes or as may 
be essential to the peculiar character of the mineral industries. 
These exceptions are generally further safeguarded by the provision 
of time and one-half for overtime. Fundamentally, the code week 
of 5 eight-hour days represents a change from a standard week of 
7 eight-hour days in 1929. Considering the present restricted output 
of the industry and the effort to spread employment by staggering 
such work as is available, little immediate increase in employment 
will result. However, with any substantial gain in production, there 
should be a material increase in total employment. 

Notwithstanding the depressed condition of the industry, even to 
the point of having the price of lead drop to an all time low for a 
50 year period of 2.65^ per pound, F.O.B. New York, the industry 
has made a sincere effort to spread emploj-ment. This sincere desire 
is evidenced by their past performance as indicative not only of their 
sincerity in drafting their code but also the further high standard 
they will maintain in adhering to the provisions and functioning of 
their code. 

Article I. Purposes. — States the purpose of the Code. 

Article II. Definitions. — Accurately defines specific terms applica- 
ble to the Lead Industry. 

Article III. Hours. — The maximum hours are limited to forty 
hours per week for employees engaged in the processing of products 
and labor incident thereto. Watchmen may be permitted to work 
56 hours in any one week period, provided that such emplyees shall 
have at least one day's rest in each, seven day period. Office, salaried 



360 

and other employees not covered above who receive less than $35.00 
per week shall not be permitted to work in excess of an average of 
forty hours per week during any one month, nor more than 48 hours 
in any one week. Employees engaged in an executive, managerial 
or supervisory capacity who receive $35.00 per week, or more, are 
not subject to anj'^ hourly limitations. The maximum hours shall not 
apply in cases of emergencies or repairs Avhere safety of life or 
health or protection of property necessitates longer hours. 

Article IV. Wages. — In the Alining Division the minimum rate 
for totally unskilled or common labor shall not be less than 40^ 
per hour above ground or 471/^^ per hour underground. The mini- 
mum wages for employees engaged in the processing of products or 
any labor incident thereto shall be 35^ per hour for the Lead Smelt- 
ing and Refining Division, 40^ for the Lead Pigments Division, and 
350 for the Metallic Lead Products and Metallic Lead Foil Products 
Division, provided that as to the Smelting and Refining Division 
in the Southern District the minimum hourly rate shall be 30f' per 
hour. The minimum rates for the several divisions named are in 
accord vrith those established in approved codes of related industries. 
The minimum rates provided for hereinabove shall be construed as 
the hiring rates applying to totally unskilled or common labor both 
above and below ground in the mining divisions, and totally un- 
skilled or common labor in the other divisions of the Industry. 
The established minimum rate of pay for the work performed in 
any pay period shall apply irrespective of whether an employee is 
actually compensated on a time rate, piece rate, or other basis. Pro- 
vision is also made for the employing of handicapped persons. No 
person employed in clerical or office work shall be paid less than 
at the rate of $15.00 per week, except that office boys and girls and 
messengers may be paid at a rate not less than 80% of the minimum 
paid office employees. 

Article V. General Labor Provisions. — Provides that no person 
under 18 years of age shall be employed except in clerical, office, 
sales, service, technical and engineering departments, and no person 
under 16 years of age shall be employed in any capacity. This Arti- 
cle also sets forth the mandatory provision respecting the rights of 
employees to organize and bargain collectively. This Article also 
provides for matters having to do with reclassification of employees, 
standards for safety and health, the observance of state laws and 
the posting of complete copies of this Code so that they are accessible 
to emploj^ees. 

Article VI. Administration. — Establishes a Code Authority con- 
sisting of the members of the Executive Committee of tlie Lead In- 
dustries Association, the Secretary of said Association, and such di- 
vision chairmen who have rcspectivel}'^ been elected to such office by 
such divisions in an ecj_uitable manner, approved by the Administra- 
tor, so as to be truly representative of such divisions respectiveh', 
and who are not members of the Executive Committee; in addition 
to membership as above provided there may be one to three members, 
without vote and without compensation by the Industry", to be ap- 
pointed by the Administrator to serve for such terms from the date 
of appointment as he may specify. On the effective date of this 
Code the voting members of the Code xVuthority shall consist of 



361 

eleven members, but such number is subject to variation clue to the 
contents of the foregoing provision. 

Article VII. Sets forth the Trade Practice Rules for the Lead 
Pigments Division, and also sets fordi open price schedules which 
are effective immediately after filing. 

Article VIII. Sets forth the Trade Practice Rules for the Metallic 
Lead Products Division. 

Article IX. Sets forth the Trade Practice Rules for the Metallic 
Foil Products Division. 

Article X. No provision of this Code relating to price or terms 
of selling, shipping or marketing, shall apply to export trade or 
sales or shipments for export trade, or transactions in the foreign 
commerce of the L^nited States. 

Article XI. Sets forth the application of this Code to operations 
with other Codes wherein other metals are produced. 

Article XII. Makes provision for modifications of this Code. 

Article XIII. Xo provision of this Code shall be so applied as 
to promote monopolies or monopolistic practices, or to eliminate, 
oppress, or discriminate against small enterprises. 

Article XIV. Covers tlie effective date. 

There are also appended to this Code and made a part thereof 
conditions for sale of lead oxides in lots less than twenty tons and 
lots of at least twenty tons, and also conditions of sale for basic lead 
carbonate (dry white lead). 

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

I find that : 

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

(b) Said Industry normally employ's not more than 50,000 era- 
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 without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant Asso- 
ciation is an Industrial Association truly representative of the afore- 
said Industry; and that said Association imposes no inequitable 
restrict ons on admission to membership therein. 

62288° 544-140 34 2 



362 

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

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

Administratar. 
Mat 24, 1934. 



CODE OF FAIR COMPETITION FOR THE LEAD 
INDUSTRY 

Abticle I — ^Purposes 

To effectuate the policies of Title I of the Natiooial Industrial 
Recovery Act, this Code is established as a Code of Fair Competition 
for the Lead Industry and its provisions shall be the standards of 
fair competition for such Industry and are binding upon every 
member thereof. 

Article II — Definitions 

Wherever used in this Code, or any supplement appertaining 
thereto, the terms enumerated in this Article shall have the meanings 
herein defined unless the context shall otherwise clearly indicate. 

Section 1. The terms " President ", "Act ", and "Administrator " 
mean respectively the President of the United States, Title I of the 
National Industrial Recovery Act, approved by the President June 
16, 1933, and any amendments thereto, and the Administrator for 
Industrial Recovery. 

Section 2. The term " Member of Industry " includes all those en- 

faged in the Industry either as an employer or on his or its own 
ehalf. 

Section 3. The term " Employee " means and includes anyone 
engaged in the Industry in any capacity receiving compensation for 
his services, irrespective of the nature or method of payment of such 
compensation, except a member of the Industry. 

Section 4. The term " Employer " means and includes anyone by 
whom an}^ such employee is cojupensated or employed. 

Section 5. The term " Apprentice " as used herein means an 
individual (usually a minor), bound by indenture, executed in com- 
pliance with the laws of the state where the service provided for 
therein is to be performed, to serve an employer for a term of years 
at a predetermined wage, for the period of the indenture in order to 
learn a trade, art or craft. 

Section G. The term " Industry " as used herein includes the 
mining of lead ore and/or the concentrating thereof, the smelting 
of lead ore, and/or lead concentrates, and/or lead bearing scrap, the 
refining of lead and/or lead bearing scrap, and/or drosses, the 
manufacturing of pig lead, antimonial pig lead, lead pigments, 
metallic antimony, metallic lead products, allied products defined 
hereinafter as " metallic lead products " and/or " metallic foil prod- 
ucts ", and the original sale of such products by the member of 
Industry producing or manufacturing the same either directly or 
indirectly through subsidiary and/or affiliated companies. 

(a) " Lead Ore and Lead Concentrates " as used herein is defined 
to mean ore and the concentrates thereof, containing lead as the 
principal commercially recoverable constituent. 

(b) " Lead Mining " as used herein is defined to mean the mining 
and concentrating of lead ore and an}?- further beneficiatio:^ thereto 
prior to the shipment to the smelter. 

(303) 



364 

(c) " Lead Smelting and Eefining " as used herein is defined to 
mean metallurgical and/or chemical treatment of lead ore, lead con- 
centrates, lead bearing scrap, and/or drosses, and/or any other lead 
bearing material into " Pig Lead ", and/or " Antimonial Pig Lead." 

(d) ^'Antimonial Pig Lead ". — Inasmuch as antimony is a com- 
mon constituent of most lead ores and a by-product of Lead Mining 
and Smelting and Kefining — metallic antimony and antimonial alloy 
products (antimonial pig lead) shall be included within the provi- 
sions of this Code. 

(e) "Lead Pigments" as used herein is defined to mean basic 
carbonate white lead (dry or in oil), basic lead sulphate (dry or in 
oil), litharge, red lead (dry or in oil), orange mineral or any other 
lead oxides, with or v/ithout metallic lead content. 

(f ) " Metallic Lead Products " as used herein is defined to mean 
extruded, rolled, cast or otherwise fabricated lead or lead alloy 
products (except storage battery plates and lead covered cable), 
produced by Members of Industry and kindred products of metallic 
tin and tin alloy, or other metal or metal alloy products, which are 
produced by the same Llembers of Industry on the same type of 
machinery and under similar labor and fabricating conditions. 

(g) " iletaliic Foil Products " as used herein is defined to mean 
leacf and/or tin, and/or zinc, or their alloys, or combinations thereof, 
rolled to a thickness of .006 of an inch or less, whether attached 
or affixed to other materials or not. 

Section 7. The term '' Division " as used herein includes re- 
spectively tlie several parts of the Industry as enumerated below: 

1. Lead Mining Division 

2. Lead Smelting and Refining Division 

3. Lead Pigments Division 

4. Metallic Lead Products Division 

5. Metallic Foil Products Division 

and such other and further divisions as may hereafter be created 
pursuant to the provisions of this Code. 

Section 8. The term "Association " as used herein includes the 
" Lead Industries Association ", an unincorporated membership 
society organized under the laws of the State of New York and 
having its principal office at 420 Lexington Avenue, New York 
City, and such other trade associations as may hereafter participate 
in the activities under this Code or in the selection of the Code 
Authority. 

Section 9. The term " Executive Committee " as used herein shall 
mean the Executive Committee of the Lead Industries Association. 

Section 10. The term " Secretary " as used herein shall mean 
the Secretaiy of the Lead Industries Association, who also shall be 
the Secretary of the Code Authority. 

Section 11. The term "Southern District" as used herein shall 
include the States of Texas, Mississippi, Alabama, Louisiana and 
Florida. 

Article III — Hours of Labor 

MAXIMUM HOURS 

Sectton 1. No employee shall be permitted to work in an}' diyi- 
eion of the Industry in excess of forty (40) hours per week, or in 



365 

excess of eight (8) hours in any twenty-four (24) hour ])eriod except 
as herein otherwise provided. A normal work day shall not exceed 
eight (8) hours. 

Tlie interpretation of the eiglit (8) hour provision for the Mining 
Division in each state shall be in accordance w^ith any laws of such 
state pertaining to the eight (8) hour day on mining operations. 

The Code Authority shall study the operation of the eight (8) 
hour provision for the Alining Division and not later than ninety 
(90) days from the effective date shall report fully to the Admin- 
istrator the results of such study. The Administrator may, at his 
discretion, appoint an impartial investigator who shall review the 
conditions in the Mining Division of the Industry concerning the 
operation of the eight (8) hour provision and shall report thereon 
to the Administrator not later than ninety (90) days from the effec- 
tive date and forward a copy of such report to the Code Authority. 

HOURS FOR CLERICAL AND OFTICE EMPLOYEES 

Section 2. No person employed in clerical or office work shall be 
permitted to work in excess of forty (40) hours in any one (1) 
week, except that during an}^ one (1) week in a one (1) month 
period such employee shall be permitted to work a maximum of 
forty-eight (48) hours in any such week. A normal work day shall 
not exceed eight (8) hours. 

EXCEPTIONS AS TO HOURS 

Section 3. The limitation as to hours of labor as specified in 
Sections 1, 2 and 4 of this Article III shall not apply to the 
following : 

(a) To emploj^ees engaged in emergency maintenance, or emer- 
gency repair work, involving breakdown or protection of life or 
property; provided that in such special cases not less than one and 
one-half (IVg) times the normal wage rate for any employee so 
employed shall be paid for all hours worked in excess of forty (40) 
hours in any one (1) week. 

(b) Nor in the case of the Mining Division shall it apply to hoist 
men, power house men, or pump men, provided the total working 
hours of such employees shall not exceed forty-eight (48) hours in 
any one (1) week. 

(c) Nor to employees receiving not less than Thirtj^-Five (35) 
Dollars per week in a managerial, executive or super\dsory capacity, 
or to technical staffs ; nor to outside sales or service employees. 

(d) Watchmen maj' be permitted to work fifty-six (5G) hours in 
any one (1) week period, provided that such employees shall have 
at least one (1) day's rest in each seven (7) day period. 

(e) There may be a tolerance of 10% additional hours over the 
forty (40) hours in any one (1) week for employees engaged in the 
preparation, care and maintenance of machinery and production fa- 
cilities, stock and shipping clerks and truckmen engaged in outside 
delivery and pick-up service; provided, however, that at least one 
and one-half (li/^) times the normal wage rate for any employee so 
employed shall be paid for all hours worked in excess of forty (40) 
hours in any one (1) week, or eight (8) hours in any one (1) day. 



see 

(f) The limitation as to maximum hours of work shall not apply 
to very special cases where restriction of hours of labor of skilled 
workers in continuous processes would unavoidably reduce or inter- 
rupt production because of demands inherent and peculiar within 
the process itself provided, however, that such employees in such 
special cases shall not work more than forty-eight (48) hours in any 
one week, and provided that in such special cases at least one and 
one-half times the normal wage rate shall be paid to any employee 
so employed for hours worked above forty (40) hours per week, or 
eight (8) liours per day. Such special cases, however, shall be 
reported to the Code Authority. The limitation of hours does not 
apply where one employee is acting in temporary relief for a fellow 
employee in continuous processes. 

(g) During any period in which a concentrated demand upon any 
division of the Industry, except mining, shall place an unusual and 
temporary burden for production work upon its facilities or to meet 
seasonal peak requirements or emergencies, an employee of any such 
division may be permitted to work not more than forty-eight (48) 
hours i^er week in not more than six (6) weeks in six (G) months of 
any calendar year, provided that not less than one and one-half 
times the normal wage rate shall be paid to any employee so em- 
ployed for hours worked above forty (40) hours per v/eek or eight 
(8) hours per day. All such overtime worked shall be reported to 
the Code Authority. 

STANDARD WEEK 

Section 4. No employee shall be permitted to work more than six 
(6) days in any seven (7) day period. 

EMPLOYMENT BY SEVERAL EMPLOYERS 

Section 5. No employer shall knowingly permit any employee to 
work for any time which, when totalled with that already performed 
with another employer or employers in this Industry, exceeds the 
maximum permitted herein. 

Article IV — Wages 

MINIMUM 

Section 1. The minimum wage for each division of this Industry 
shall be as follows: 



Cents per hour 



Surface 



Under- 
ground 



1. Lead minin? division 

2. Lead smelting and refining divLsion. 

3. Lead pigments division 

4. Metallic lead products.division 

5. Metallic foil products division 



40e 

35 

40 

35 

35 



47H(5 



3(37 

provided that, as to the Smelting and Refining Division, in the 
Southern District, the minimum hourly rate shall be thirt}' (30) 
cents per hour. Minimum wages in all divisions of the Industry in 
eflfect on July 1st, 1933, which were above the minimum specified, 
shall in no case be reduced. 

The minimum rat€s provided for hereinabove shall be considered 
as the lowest hiring rates applying to totally unskilled labor or 
common labor above ground in the Mining Division and totally 
unskilled labor or common labor in the other divisions of the Indus- 
try. In the Mining Division, the minimum hiring rate for under- 
ground common labor shall be not less than forty-seven and one-half 
(471/2 ) cents per hour. Other classes of labor shall be compensated 
at rat^s above such minimums. 

CUERICAL AND OFFICE EMPI^TEES 

Sectfion 2. No accounting, clerical, office, sales, or service em- 
ployees shall be paid less than Fifteen (15) Dollars per week of 
lorty (40) hours; pro%nded, however, that office boys and girls and 
messengers may be paid at a rate not less than 80% of such mini- 
mum, and provided further that the number of such boys and girls 
and messengers so paid shall constitute not more than 5% of the 
total number of such employees of any one (1) office of any one 
(1) employer, but in any case each employer shall be entitled to 
at least one (1) such employee. Part time emplo3'ees shall be 
paid an hourly rate which shall not be less than the pro rata amount 
of the wages specified hereinabove. 

PIECEWORK COMPENSATION — MINIMUM WAGES 

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

female employees 

Section 4. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees, and, when they displace male employees they shall receive 
the same rate of pay as the men they displace. 

WAGES AB0A"E THE MINIMUM 

Section 5. Equitable adjustments in all pay schedules of em- 
ployees 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 Eecovery Act. In no event, however, shall hourly rates 
be reduced. Within sixty (60) days after the effective date of this 
Code, each member of the Industry shall make a report of such ad- 
justments whether made prior to or subsequent to the date of 
approval of this Code to the Code Authority. 



368 

HANDICAPPED PERSONS 

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 
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. 

APPRENTICES 

Section 7. Employment of apprentices at rates of compensation 
below the minimum provided herein shall be permitted where they 
are apprenticed to an employer by an indenture made pursuant to 
the laws of the state in which such service is to be performed, under 
any apprentice system established and maintained by such employer, 
provided such indenture agre<iments are filed with the Code Author- 
ity. Employers shall not be allowed to have apprentices exceeding 
5% of the total number of skilled craftsmen of their special class, 
except that each employer shall be entitled to employ at least one 
such employee. In no case shall an apprentice be paid less than the 
minimum wage provided in Section 1 of Article IV in states which 
do not have laws governing apprentices. 

PAYMENT OF AVAGES 

Section 8. An employer shall make payment of all wages in law- 
ful currency, or by negotiable check therefor, payable on demand. 
These wages shall be exempt from any payments for pensions, in- 
surance or sick benefits other than those voluntarily paid by the 
wage earners or required by the State Laws. Pay periods for wages 
shall be at least semi-monthly and for salaries at least once per 
month. Employers shall not withhold wages except as otherv;ise 
provided for by law. 

Article V — General Labor Provisions 

CHILD LABOR 

Section 1. On and after the effective date of this Code, no per- 
son under 18 years of age shall be employed in the Lead Industry 
except in clerical, office, sales, service, technical and engineering 
departments, and no person under IG years of age shall be employed 
in any capacity. In any state, an employer shall be deemed to have 
complied with this provision as to a<^e of employees if he shall hava 
on file a certificate or permit duly signed by the Authority in sucl" 
state empowered to issue employment or age certificates or jjermits 
showing that the employee is of the required age. 



369 

PRO\TSIO>rS FROM THE ACT 

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

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

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

RECLASSIFICATION OF EMPLOYEES 

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. 

STANDARDS FOR SAFETY AND HEALTH 

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 of safety and health for each divi- 
sion of the Industry shall be submitted to the Administrator by 
the Code Authority within six (G) months after approval of this 
Code. 

state laws 

Section 5. No provision in this Code shall supersede any State or 
Federal Law which imposes on employers more stringent require- 
ments as to age of employees, wages, hours of work, or as to safety, 
health, sanitary or general working conditions, or insurance or fire 
protection, than are imposed by tliis Code. 

posting 

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

C02IPANY TOWN AND STORES 

Section 7. Employees other than maintenance or supervisory men, 
or those necessary to protect property, shall net be required as a 
condition of employment, to live in homes rented from the employer. 
No employee shall be required as a condition of employment, to trade 
at a store owned or specified by an employer. 



370 

DISMISSAL FOR COMPLAINT 

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

Article VI — Organization, Powers ano Duties Of the Code 

Authority 

organization and constitution 

Section 1. A Code Authority is hereby constituted and shall con- 
sist of the members of the Executive Committee of the Lead Indus- 
tries Association, the Secretary of said Association, and such division 
chairmen who have respectively been elected to such office by such 
divisions in an equitable manner, approved by the Administrator, 
eo as to be truly representative of such divisions respectivelj', and 
who are not members of the Executive Committee. In addition to 
membership as above provided there may be one to three members, 
without vote and without compensation by the Industry, to be ap- 
pointed by the Administrator to serve for such terms from the date 
of appointment as he may specify. On the effective date of this 
Code the voting members of the Code Authority shall consist of 
eleven members but such number is subject to variation due to the 
contents of the foregoing provision. It is contemplated that supple- 
mentary codes of fair competition not inconsistent with this basic 
Code will be adopted for each division of the Industry. When and 
if such supplementary codes are submitted and approved they shall 
contain provisions for a Divisional Code Authority selected in an 
equitable manner so as to be truly representative of such division of 
the Industry subject to the approval of the Administrator, to admin- 
ister the provisions of this basic Code which relates to such division, 
and the provisions of such supplementary Code, and in addition this 
basic Code Authority may delegate such of its powei'^ and duties as 
it deems necessar}" to such di"vdsion Code Authority of such supple- 
mentary Code, provided, however, that any interested party shall 
have a right of appeal from any act or decision of such divisional 
Code Authority to the Code Authority of this basic Code. 

Section 2. Each trade or industrial association directly or indi- 
rectly participating in the selection or activities of the Code Author- 
ity shall, (1), impose no inequitable restrictions on membership and, 
(2), submit to the Administrator true copies of its Articles of 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 necessary 
to effectuate the purposes of the Act. 

Section 3. In order tliat 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 any basic Code Authority or divisional 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 such Code Authority. 



371 

Section 4. Members of the Industry sliall be entitled to partici- 
pate in and share the benefits of the activities of the Code Authority 
and to participate in the selection of the members thereof by assent- 
ing to and complying with the requirements of this Code and sus- 
taining their reasonable share of the expenses of its administration. 
Such reasonable share of the expenses of administration shall bo 
determined by the Code Authority, subject to review and approval 
by the Administrator, on the basis of volume of business and/or 
such other factors as may be deemed equitable. 

Section 5. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner 
to anyone for any act of any other member, officer, agent or employee 
of the Code Authorit}'. Nor shall any member of the Code Author- 
ity exercisinf^ reasonable diligence i-n the conduct of his duties here- 
under, be liaole to anyone for any action or omission to act under 
this Code, except for his own wilful misfeasance or nonfeasance. 

POWEKS AND DUTIES 

Section 6. Subject to such rules and regulations as may be issued 
by the Administrator, the Code Authority shall have the following 
further powers and duties, the exercise of which shall be reported 
to the Administrator and shall be subject to his right, on review, to 
disapprove, after such hearing as he may prescribe, any action taken 
by the Code Authority. If the Administrator shall determine at 
any time that any action of the Code Authority or any agency thereof 
is unfair or unjust or contrary to the public interest, the Adminis- 
trator may require that such action be suspended to afford an oppor- 
tunit)' 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 itis original or modified 
form. 

(a) To insure the execution of the provisions of this Code and 
provide for the compliance of the Industry wuth the provisions 
of the Act, subject to such rules and regulations as the Administrator 
may prescribe, and receive complaints of violations of this Code and 
disputes arising thereunder, except as otherwise hereinafter provided 
for in subsection (h) of this section, make investif^ations thereof 
at their own instance, provide hearings thereon, adjust such com- 
plaints and make such decisions as are necessary thereon and to 
interpret the provisions of the Cotle and to bring violations of this 
Code to the attention of the Administrator for prosecution, recom- 
mendation and other action. 

(b) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code. The Code 
Authority shall promptly furnish to the Administrator true copies 
of the by-laws, rules and i-egulations adopted pursuant to this 
paragraph. 

(c) To obtain from members of the Industry, through a con- 
fidential agencj^, such statistical information and reports as are re- 
quired for the administration of the Code and to provide for sub- 



mission by members of the Industry of such statistical information 
and reports as the Administrator may deem necessary for the pur- 
poses recited in Section 3 (a) of the Act, which information and 
reports shall be submitted by members of the Industry to such 
Federal and/or State agencies as the Administrator may designate; 
provided that nothing in this Code shall relieve any member of the 
Industry of an}^ existing obligations to furnish reports to anv govern- 
ment agency. Xo individual reports submitted to the Administrator 
and/or stich government agencies as the Administrator may desig- 
nate, shall bo disclosed to any other member of the Industry or any 
other party except to such government agencies as may be directed 
by the Administrator. 

(d) To use such trade associations and other agencies as it de€ms 
proper for the canying 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 
compl}' with the provisions hereof. 

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

(f ) To 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 call meetings of any division of the Lead Industry to con- 
sider control of production through voluntary agreement, and to 
recommend to the Administrator such measures as have been volun- 
tarily agreed upon covering fair trade practices, industrial planning 
and production control, including stabilization of employment and 
conservation of natural resources. 

(h) Witliin ninety days after the effective date of this Code, the 
Code Authority shall submit to the Administrator for his approval 
a plan for the est-ablishment of a National Industrial Relations 
Board for the Industry', consisting of an equal number of repre- 
sentatives of employers and emploj'ees. Provision shall be made in 
such plan for division of the country into districts and the creation 
of regional industrial relations boards to comprise an equal number 
of representatives of employers and employees truly representative 
of such districts. The creation and functioning of these boards, in- 
cluding the selection of representatives of employees, shall be in 
accordance with Section 7 of the Act. Provision shall also be made 
for tlie appointment of an impartial person on each board, national 
and regional, to vote only where such board is unable to render a 
majority decision. This plan shall provide that the regional boards 
shall have the autliority to hear and adjudicate all complaints and 
disputes arising out of Articles III, IV and V of the Code, and the 
National Industrial Relations Board shall pass on all appeals from 
the regional boards solely on the basis of the record as certified by 
the Regional Boards to the National Industrial Relations Board. 
Before any such plan is approved, it shall be submitted to the Labor 
Advisory Board of the National Recovery Administration for their 
consideration and recommendations. The Administrator shall have 
the right, after such notice and hearing as he may specify, to review, 



373 

disapprove or modify such plan and the plan shall become effective 
as a part of this Code when and as approved by limi. 

Article VII — Trade Practice Rules for Lead Pigments Division 

Section 1. The following described acts shall be deemed unfair 
competition for Division 3 (Lead Pigments), and shall constitute a 
violation of this Code : 

(a) Misbranding or misrepresentation of lead pigments. 

(b) 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 re\yarding the action of any employee, agent, or representative or 
another in relation to the business of the employer of such employee, 
the principal of such agent or the represented party, without the 
knovvdedge of such employer, principal or party. This commercial 
bribery provision shall not be construed to prohibit free and general 
distribution of articles commonly used for advertising, except so far 
as such articles are actually used for commercial bribery as herein- 
above defined. 

(c) Inducing or in anv manner attempting to induce a breach, 
derault or cancellation of a contract between a competitor and his 
customer during the term of such contract. 

(d) Guaranteeing for a definite time the life and/or service of lead 
pigments. 

(e) Making false and derogatory statements with respect to the 
prices, policies, products, practices, business or credit of any com- 
petitor. 

(f) No merchandise shall be sold at a concession, or used as an 
inducement, to influence the sale of any lead products, nor shall any 
concession be given in the price or terms of sale of a lead product to 
influence the sale of any other merchandise. 

Section 2. Each member of the Industry engaged in the manu- 
facture and sale of lead pigments shall file with the Secretary within 
ten (10) days after the effective date of this Code, a list of the prices 
at which his products will be sold and a memorandum of any of his 
conditions of sale at variance with those set forth in Schedule "A" 
attached hereto and which is made a part hereof. Any change in 
prices or conditions of sale shall be reported to the Secretary in such 
manner as to reach his office within twenty-four (24) hours after the 
effective date of such change. Any member making a sale or quota- 
tion, which does not conform to the basis he then has on file, shall 
notify the Secretary in detail by letter mailed within twenty-four 
(24) hours. The information supplied the Secretary shall be re- 
issued immediately to the reporting members. 

Section 3. Each member of the Lead Pigments Industry, as de- 
fi.ned in Article II, shall submit promptly to the Secretary the 
following periodic reports for compilation and reissuance in such 
manner as may be determined by the Division: 

(a) Monthly reports of total production. 

(b) Stocks on hand of finished merchandise at the beginning of 
each month. 

(c) Monthly reports of total shipments. 



374 

AiiTiCLE VIII — Trade Practice Rules For Metallic Lead Products 

Division 

Section 1. The following described acts shall be deemed unfair 
competition for Division 4 (Metallic Lead Products), and shall con- 
stitute a violation of this Code : 

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

(b) Making allowance for sales promotion and advertising in 
excess of actual amoimt expended, or making excessive exf)enditures 
on behalf of or for the benefit of a customer. 

(c) Misbranding or misrepresenting the percentage or quality of 
various metals in any products. 

(d) No member of the Division 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. 

(e^ Accepting orders guaranteed against a decline in price. 

(f ) Maldng false and derogatory statements with respect to com- 
petitors' prices, policies, products, practices, business or credit. 

(g) Giving any other product at a concession in price or giving it 
away free, in order to influence the sale of any lead product. 

(h) Changing prices after the award of a contract and specifically, 
but without limitation, canceling an}' undelivered portion of a con- 
tract for the purpose of effectuating a new contract with the buyer 
when the purpose of such cancelation is to create an unfair price 
advantage for a Member of Industry. 

(i) Contracting for unspecified quantities at a fixed price or giv- 
ing options at fixed prices for unspecified quantities. 

(j) Inducing or in any manner attempting to induce a breach, 
default or cancellation of a contract, between a competitor and his 
customer, during the term of such contract. 

(k) Taking back obsolete material or material damaged not by 
the vendor's fault at any value other than its value as secondary 
material. 

Section 2. The following unfair trade practices apply to the Type 
Metal Business only : 

(a) Attaching drum tags to competitors' dross drums without 
receiving authority to do so from the prospect or customer. 

(b) Failing to return competitors' drums to their owner within a 
period not exceeding thirt}^ days from time of their receipt. 



375 

AiiTici^ IX — Trade PRAcmcE Rules for Metallic Foil Products 

DI^^SION 

Section 1. The following described acts shall be deemed unfair 
competition for Division 5 (Metallic Foil Products) and shall con- 
stitute a violation of this Code : 

(a) No member of the Division shall publish untruthful adver- 
tising^ nor shall any member in any way misrepresent any goods or 
credit terms. 

(b) No member of the Division shall knowingly withhold from or 
insert in any quotation or invoice any statement that makes it inac- 
curate in any particular, 

(c) No member of the division shall secretly offer or made any 
payment or allowance of a rebate, refund, commission, credit, un- 
earned discount or excess allowance, whether in the form of money 
or otherwise. 

Article X — Export Trade 

No provision of this Code relating to prices or terms of selling, 
shipping or marketing, shall apply to export trade or sales or ship- 
ments for export trade, or transactions in the foreign commerce of 
the United States. 

Ariicle XI — Application or Code to Operations Wherein Other 
Metals Are Produced 

Section 1. If any member of the Industry is also a member of any 
other Industry, provisions of this Code shall apply only to that 
portion of its business v>^hich is a part of the Lead Industry. 

Section 2. "Where there is any question as to v/hether lead is the 
major production from the operations which do or which might pro- 
duce lead, zinc, copper, gold, silver or other materials, then in any 
and every such event the question as to which Code of Fair Compe- 
tition shall govern such oi^erations of any such member of this In- 
dustry, shall be referred to a Coordination Committee. This Coor- 
dination Committee shall be composed of two members to be ap- 
pointed by each of the Code Authorities for such industries as may 
be involved in each particular question. In the event such Commit- 
tee is unable to reach a majority conclusion, then either the Commit- 
tee shall elect an additional impartial member or upon their failure 
so to agree on such additional impartial member, the Administrator 
then may appoint such additional impartial committee member. Any 
member of the Industry, the operations of which may raise such a 
question, shall file a statement of fact with the Code Authority for 
its Industry, and such statement shall contain a statement of its 
preference as to the Code it Avould prefer to have such operations be 
governed by, and such preference shall be granted unless such Coor- 
dination Committee shall find that the granting thereof would be 
unfair in view of the rights of others or that it would have a tend- 
ency contrary to the effectuation of the policies of the Act. Any 
action taken by the Coordination Committee shall be referred to the 
Administrator and shall be subject to his disapproval. 



376 

Section d. Within ten (10) days after the effective date of this 
Code, any member of tlii§ Industry may file such a statement of fact 
and preference as to being governed by any of such otlier Codes 
which may at that time be in effect. Thereafter upon any such 
other Code becoming effective, such statement may then be filed ; 
provided, however, that until any such statement is filed and decision 
is made thereon b}^ such Coordination Committee, such operation of 
such member of this Industry shall be governed by the provisions 
of this Code. 

Section 4. From time to time thereafter if conditions change, 
members of this Industry shall be entitled to file such statements oi 
fact and preference as to change of a portion of their operations 
from the jurisdiction of one Code to the jurisdiction of another, and 
in such event they shall be handled in the same manner as pro- 
vided for above. 

Section 5. The foregoing Sections 1 to 4 inclusive of this Article 
XI, shall not be effective until Codes of Fair Competition for the 
copper and zinc industries, containing an Article substantially the 
same as this Article XI, have been approved, and are in effect, and 
certified copies of such approved codes have been filed with the Code 
Authority for this Industry. 

Article XIII — Monopolies 

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 an}- 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 any conditions imposed by him upon his approval hereof. 

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 b}^ experience ; all the provisions of this Code, 
unless so modified or eliminated, shall remain in effect until the 
expiration of Title I of the Act. 

Section 3. An amendment to this Code or any Codes supplemental 
thereto affecting or pertaining to the several divisions of the Lead 
Industiy, may be proposed by any interested party either to the 
divisional Code Authority, the Basic Code Authority, or directly by 
or to the Administrator. All such proposed amendments shall be 
referred to the division affected or interested and then shall be sub- 
mitted by said division to the Basic 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 are deemed proper; provided, however, that when ap- 
proved by the Administrator as necessary to effectuate the policies 
of the Act, after such notice and hearing as he may prescribe, any 
proposed amendment shall thereupon become effective as a part of 
this Code. 



377 

Article XIII — Moxoror-TE3 

Xo provision of this Code shall be so applied as to promote 
monopolies or monopolistic practices, or to eliminate, oppress, or 
discriminate against small enterprises. 

Article XIV — Effecti\'e Date 

This Code shall become effective beginning the second Monday 
after its approval by the Administrator. 

Approved Code No. 442. 
Registry No. 1217^8-01. 



SCHEDULE A 

Artict-e I — Conditions For Sale of Lead Oxides in Lots of Less Than Twenty 

Tons 

A " Sale " or " Order " as use.i herein Includes any transaction whereby 
a Member of the Industry makes a quotation on, or becomes obligated to sell 
and deliver material. 

B. Whatever terminology may be used, the intent and meaning thereof shall 
conform to the following requirements of sale : 

(1) Material. — Dry Oxides of Lead, or mixtures consisting principally 
thereof, each grade of material to be specifically designated. 

(2) Quantitj/. — Any amount as agreed between Buyer and Seller. 

(3) Puckfigcs. — As agreed between Buyer and Seller. Special packages re- 
quired by Buyer shall be charged for according to cost. 

(4) Price. — (a) Seller's card or quoted price in effect on date order is 
received with allowance as follows: 

(1) Not more than one-half cent (%^) per pound for minimum ship- 
ment of five (5) tons for one buyer at one time to one destination. 

(b) Emergency shipments of smaller quantities may be made at the 5-toa 
price only to a customer for whom the Seller has a 5-ton order on hand for the 
same material for immediate shipment, or five (5) tons en route to the samo 
destination. 

(c) No protection against decline in Seller's price may be given. 

(d) Red Lead containing ninety-seven per cent (97%) or ninety-eight per 
cent (98%) PbT,04 shall be so marked on the package and shall be sold at not 
less than cue-quarter cent (U^) and one-half cent (M;0) per pound, respectivelj', 
over Seller's price for grades of lower Pb.iO^ content. 

(5) Delivery. — F.O.B. cars Seller's shipping point, or by truck F.O.B. Buyer's 
premises. 

(G) Transportation Alloivance. — (a) Since transportation is included in the 
Seller's price, the actual freight paid by Buyer shall be allowed as deduction. 
No cartage allowance shall be made to Buyer for use of his own truck. 

(b) If shipment is made by Buyer's boat. Seller may allow actual amount 
he would have paid for like transportation at minimum published tariffs in 
effect on date of shipment. 

(7) SJiipment. — Shall be made at least within thirty (30) days from date 
order is received. 

(8) Terms. — Net thirty (30) days, less one per cent (1%) for cash in ten 
(10) days from date of shipment. 

(9) Taxes. — Any tax or other charge imposed by Federal Law upon the 
production and/or sale and/or shipment of Lead Oxides shall be added to 
the price to be paid by the Buyer on any transaction to which such charge is 
applicable. 

Article II — Conditions fok Sale of Lead Oxides in Lots of at Lej\st Twenty 

Tons 

A. " Sale " or " Order " as used hei'ein refers to any transaction whereby a 
Seller quotes on or becomes obligated to deliver material. 

B. Whatever terminology may be used, the intent and meaning thereof shall 
confoi-m to the following requirements of sale : 

(1) Material. — Dry Oxides of Lead, or mixtures consisting principally 
thereof, each grade of material to be specifically designated. 

(2) Quantity. — As agreed between Buyer and Seller; provided, that each 
order or release shall be an amount not less than twenty (20) tons to one 
destination and for account of not more than one Buyer. 

(3) Period. — As specified. 

(378) 



379 

(4) Packages. — As agreed between Buyer and Seller. Special packages re- 
quired by Buyer shall be charged for according to cost. 

(5) Price. — (a) Shall be determined by adding a differential, as agreed upon 
by Buyer and Seller, to the price of common Lead at New York, the Lead price 
applying to each order to be specified by the Buyer at the time order is placed, 
as: 

(1) Tlio American Smelting & Refining Company's quotation at the close 
of the market on the day the order is received by Seller 



(2) The American Smelting & Refining Company's quotation at the close 
of the market on a future date definitely agreed upon by Buyer and Seller 
when order is accepted 



(3) The average quotation, as reported in one of the publications known 
as the American Metal Market and the Engineering & Mining Journal, for a 
future period definitely agreed upon by Buyer and Seller when the order is 
accepted. If the Lead price is determined by the method herein outlined. 
Seller must require Buyer to specify before the beginning of the governing 
period the exact quantity of m.aterial to be priced in this manner. Deferred 
shipments shall be billed on the basis originally applicable thereto. Addi- 
tional quantities required during the governing period shall be considered 
as new orders and shall be priced in accordance with (1) or (2) above. 

(b) Emergency shipmenrs of smaller quantities may be made on tiie twenty 
(20) ton price basis only to a customer for whom the Seller has a twenty (20) 
ton order on hand for the same material for immediate shipment, or twenty 
(20) tons en route, to the same destination. 

(c) No protection against decline in Seller's price may be given. 

(d) Red Lead containing ninety-seven per cent (97%) or ninety-eight per cent 
(98%) Pb:04 shall be so marked on the package and shall be sold at not less 
than one-quarter cent (%(?) and one-half cent (%0) per pound, respectively, 
over Seller's price for grades of lower PbsOj content. 

(6) Delivery. — (a) F.O.B. cars Seller's shipping point 



(b) By truck complete within three (3) days, F.O.B. Buyer's premises. 

(7) Transportation Allowance. — (a) Since transportation is included in the 
Seller's price, the actual freight paid by Buyer shall be allowed as a deduction. 
No cartage allowance shall be made to Buyer for use of his own truck. 

(b) If shipment is made by Buyer's boat. Seller may allow actual amount he 
would have paid for like transportation at minimum published tariffs in effect 
on date of shipn)ent. 

(8) Shipment. — Shall be made at least within sixty (60) days from, 
(a) The date on v.hich the price of pig lead governs the sale. 



(b) The beginning of the period during which the average price of Pig Lead 
governs the sale. 

(9) 7'^ni^s.— Net thirty (30) days. 

(10) Taxes. — xVny tax or other charge imposed by Federal Law upon the 
production and/or sale and/or shipment of Lead Oxides shall be added to the 
price to be paid by the Buyer on any transaction to which such charge is 
applicable. 

Article III — Conditions fob Sale of Basic Lead Carbonate (Duy White 

Lead) 

A. " Sale " or " Order " as used herein includes any transaction whereby a 
Member of the Industry makes a quotation on or becomes obligated to sell and 
deliver material. 

B. Whatever terminology may be used, the intent and meaning thereof shall 
conform to the following requirements of sale: 

(1) Quantity. — Any amount as agreed between Buyer and Seller. 



380 

(2) Period. — As desired, to be spccifled. 

(3) Packages. — As agreed between Buyer and Seller, 

(4) Price — (a) Spot Sales. — Seller's card or quoted price in effect on date 
order is received. 

(b) Contract Sales. — 1. Seller's price on date contract is made with protec- 
tion against advance or decline on the undelivered portion to the end of the 
current calendar quarter. 

2. On contracts extending beyond tlie current calendar quarter, the price 
ai'plying to subsequent deliveries shall be seller's price in effect on the first 
day of the calendar quarter in which they are made, with protection against 
advance or decline on the undelivered portion to the end of each quarter. 

(c) Tlie price for minimum twenty (20) ton lots for one Buyer to one des- 
tination, shipped by rail in one carload, or delivered by truck within a period 
of three (3) days, shall be not more than one-quarter cent (^40) per pound 
less than that charged for smaller quantities. 

(d) Emergency shipments of smaller quantities may he made at the twenty 
(20) ton price only to those customers for whom the Seller has a twenty (20) 
ton order on hand for the same material for immediate shipment, or a carload 
(twenty (20) tons) en route, to the same destination. 

(5) Deliver]/. — F.O.B. cars Seller's shipping point, or by truck F.O.B. 
Buyer's premises. 

(6) Transportation AUoicarwe. — Since transportation is included in the Sell- 
er's price, the actual freight paid by Buyer shall be allowed as deduction. 
No cartage allowance shall be made to Buyer for use of his own truck. 

(7) Shipment — (a) Spot Sales. — Within thirty (30) days from date order 
is received. 

(b) Contract Sales. — Within the pericKl covered by the contract. 

(8) Terms. — Net thirty (30) days, less one per cent (1%) for casli in ten 
(10) days from date of shipment. 

(9) Taxes. — Any tax or other charge imposed by Federal Law upon the pro- 
duction and/or sale and/or shipment of white lead shall be added to the price 
to be paid by the Buyer on any transaction to which such charge is api)licable. 

o 



Approved Code No. 443 
CODE OF FAIR COMPETITION 

FOR THE 

NICKEL AND NICKEL ALLOYS INDUSTRY 

As Approved on May 24, 1934 



OPtDER 



Code of Fair Competitiox for the Nickel and Nickel Alloys 

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, l^SS, for approval of a Code of 
Fair Competition for the Nickel and Nickel Alloys 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 authoritj^ vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. C543-A, dated December 30, 
IQSCS, 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 an& 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 Administrator. 

Washington, D.C, 

May H, 19B1^. 

02287° 544-141 34 (381) 



KEPOKT TO THE PRESIDENT 

The President, 

The White House. 

Sir : The original code for the Nickel and Nickel Alloys Industry 
was submitted on Aug^ust 21, 1933, by the Nickel Alloys Association, 
Incorporated, organized in 1933 representing in excess of 90% of the 
known members of the Industry and 90% of the volume of produc- 
tion. Several revisions of the code were made prior to the public 
hearing which was held on April 18, 1934. This code was revised 
during the recess of this hearing and was submitt-ed in its present 
form for approval. Every person who requested an appearance 
was properly heard in accordance with statutory and regulatory 
requirements. 

The Nickel and Nickel Alloys Industry includes (a) the primary 
production of Nickel or Nickel Alloys having a nickel content of 
over 30% and/or the production of semifinished products and/or 
the subsequent processing of such semifinished products into wrought 
industry products, and (b), the original sale in the United States 
either directly or indirectly through subsidiary and/or affiliated 
companies or agents of industry products by any individual, partner- 
ship, association, corporation or other form of enterprise engaged 
in (a) above. Industry products include various forms of nickel 
or nickel alloj^s having a nickel content of over 30%, naniel}', reduced 
nickel, electrolytic nickel, shot, blocks, pellets, grain, powder, ingots, 
blooms, billets, slabs, bars, rods, shapes, forgings, plates, sheets, 
tubing and hot rolled strip ; ribbon, wire and cold rolled strip only to 
the extent that the production thereof for specific application is not 
covered by other approved Codes of Fair Competition. Wrought 
industry products are the products produced by the processes of 
rolling, forging, drawing, ancl/or similar processes as in contradis- 
tinction to " finished castings ", the production of which is governed 
by other Codes of Fair Competition. 

The United States uses over one-half of the world production of 
nickel and except for the small quantity recovered as secondary metal 
and that produced by electrolj'tic copper refineries, imports its 
needs chiefly from Canada. Imports which can be satisfactorily 
compared only on a value basis reached a total value of $19,000,000 in 
1929, and $10,500,000 in 1933. 

Nickel finds application in special alloy steels used in automobiles, 
machines, and in many other products, and has proved indispensa- 
ble to modern industry in many of its alloys other than tlie ferrous 
group. Possibly the most important is the direct-smelted alloy con- 
taining approximately two-thirds nickel and one-third copper, 
known to the trade as " IMonel " metal. These nonferrous alloys are 
distinguished by their resistance to stain, their workability and their 
strength. Nickel silver, an alloy containing nickel, copper and zinc 

(382) 



383 

continues to be used extensively as a base for silver-plated ware, flat 
keys, plumbintr fixtures and many other uses. Electroplating, an 
old use for nickel, has been superseded to some extent by chromium 
plating. It has, however, been found necessary to apply a heavy 
plate of nickel before appl3dng the chromium plate to obtain the best 
results. In fact more nickel is consumed per unit area for chromium 
platinfj than was formerly used for nickel plating. Nickel-clad steel 
plate is made by rolliilating pure nickel on steel. The resulting 
sheets have a surface highly resistant to chemical attack but other- 
wise have the qualities of steel. The use of nickel in combination 
with chromium as allo^ constituents are the bases of a " stainless 
steel ". Various combinations of chromium and nickel are also 
the alloy constituents for various heat resisting alloys. The use of 
nickel in coins, catalyzers, Edison storage batteries, electrical resist- 
ance alloys and chemical salts are among the many industrial de- 
mands for nickel. 

The three companies who are the proponents of this code repre- 
sent the entire industry included under the code and normally em- 
ploy about 1,500 persons of whom 1,200 are employed at present. 
The code makes provision for a basic 40 hour week which represents 
a reduction from the erstwhile 48 hour week. There are the usual 
exceptions from the basic 40 hour week, with some provisions for 
peak periods and continuous operations. These exceptions however 
are covered by provisions of time and one-half for overtime. The 
maximum of 40 hours per week as outlined in this code and the new 
minimum rates per hour for the industry, as well as the provision 
for adjustment of wages above -the minimum, should result in a 
further spread of not only the available work among the workers, 
but also increase consumers' purchasing power. 

Article I. States the purpose of the code. 

Article II. Accurately defines specific terms applicable to the 
Nickel and Nickel Alloys Industry as used in this Code. 

Article III. The maximum hours are limited to 40 hours per 
Aveek except that during six weeks in any six months period oi a 
calendar year in order to meet seasonal or peak demand, employees 
may be permitted to work not more than 48 hours per week with 
the proviso that time and one half shall be paid for any employee 
so employed for hours worked in excess of 40 hours per week. Office, 
salaried and other employees not covered by the above who receive 
less than $35 per week shall not be permitted to work in ex'cess of 40 
hours in any one week except that they may be permitted to work 48 
hours in any one week in any 4 weeks' period. Watchmen may be 
permitted to work either 84 hours in any 14 day period or 56 hours 
in any seven day period, provided that such employees shall have 
at least one day's rest in every seven. Employees engaged in an 
executive, managerial or supervisory capacity who receive not less 
than $35 per week and those engaged in emergency repairs or main- 
tenance where the safety of life, or health, or the protection of prop- 
erty demands longer hours, a<re not subject to hourlj^ limitations. No 
employee shall be permitted to work more than six days >in an)'^ 
seven day period except as otherwise provided. 

Article IV. The minimum wages .for employees shall not be less 
than 400 per hour. No person employed in clerical or ofTice work 



884 

shall be paid less than at the rate of $15.00 per week except that 
office boys and girls and messengers may be paid 80% of the estab- 
lished minimimi for office employees. The minimum rate of pay for 
work performed for any pay period shall apply irrespective of 
whether an employee is actually compensated on a time rate, piece 
work or other basis. Provision is made for the employment of handi- 
capped persons. Provision is also made for the adjustment of wages 
above the minimum if such adjustment has not been made prior to 
March 15, 1934. 

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 except in clerical, office, sales, sales service, technical 
and engineering departments. This article also sets forth mandatory 
provisions respecting the rights of employees to organize and bargain 
collectively. It also provides for matters having to do with reclassi- 
fication 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 seven 
members, six of whom are to be selected from and by the Board of 
Directors of the Nickel Alloys Association and one member to be 
selected by the Members of Industry who are not members of the 
association by a fair method of election to be proposed by the associa- 
tion to and with the approval of the Administrator. In addition to 
the seven members above mentioned there may be one or three repre- 
sentatives without vote and without compensation from the Industry 
to be appointed by the Administrator for such terms as he may 
specify. In addition to the organization of the Code Authority the 
powers and duties thereof are also outlined in this Article. 

Article VII. Sets forth Trade Practices for the Industry. 

Article VIII. No provision of this code relating to terms of sell- 
ing, shipping, or marketing shall apply to export trade or sales or 
shipments for export trade, or transactions in the foreign commerce 
of the United States. 

Article IX. 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 the Act. This Code, except as to provisions required by the 
Act, may be modified on the basis of experience or changes in cir- 
cumstances; such modification to be based upon application to the 
Administrator and such notice and hearing as he may specify, pro- 
vided, however, that all proposals for such modification shall first 
be referred to the Code Authority for its recommendation thereon. 

Article X. No provision of this Code shall be so applied as to 
promote monopolies or monopolistic practices, or to eliminate, op- 
press or discriminate against small enterprises. 

Article XL Makes provision that this Code shall become effective 
ten days after its approval by tlie Administrator. 

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



3S5 

I find that: 

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

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

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

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

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

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

For these reasons, therefore, this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator, 
Mat 21, 1934. 



CODE OF FAIE COMPETITION FOR THE NICKEL AND 
NICKEL ALLOYS INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title 1 of the National Industrial 
Recovery Act, this Code is established as a Code of Fair Competi- 
tion for the Nickel and Nickel Alloys Industry, and its provisions 
shall be the standards of fair competition for such Industry and 
be binding upon every member thereof. 

Abticle II — Definitions 

Wherever used in this Code or any supplement appertaining 
thereto, the terms enumerated in this Article shall have the meanings 
herein defined unless the context shall otherwise clearly indicate : 

Section 1. The term " President " means the President of the 
United States of America. 

Section 2. The term "Act " means Title I of the National Indus- 
trial Recovery Act. 

Section 3. The term "Administrator " means the Administrator 
for Industrial Recovery. 

Section 4. The term " Nickel and Nickel Alloys Industry " or 
" Industry " as used herein includes (a) the primarj^ production of 
nickel or nickel alloys having a nickel content of over 30% and/or 
the production of " semifinished products " and/or the subsequent 
processing of such " semifinished products " into " wrought industry 
products ', where such production or processing is performed in a 
"nickel plant", and (b), the original sale in the United States, 
either directly or indirectly through subsidiary and/or affiliated 
companies and/or agents, of " industry products by any individual, 
partnership, association, corporation or other form of enterprise 
engaged in (a) above. 

(a) The term " industry products " includes the following forms 
of nickel or nickel alloys having a nickel content of over 30% : 

Reduced nickel, electrolytic nickel, shot, blocks, pellets, grain, pow- 
der, ingots, blooms, billets, slabs, bars, rods, shapes, forgings, plates, 
sheets, tubing, and hot rolled strip. Ribbon, wire, and cold rolled 
strip are onh' included within this definition to the extent that the 
production thereof for specific applications is not covered by other 
approved Codes of Fair Competition. 

(b) The term "wrought industry products" means the products 
produced by processes of rolling, forging, drawing, and other simi- 
lar processes as in contradistinction to " finished castings ", the pro- 
duction of which is governed by other Codes of Fair Competition. 

(c) The term "semifinished products" includes the following in- 
dustry products — to wit : Ingots, blooms, billets and slabs. 

(386) 



387 

(d) The term "nickel plant" niean^: 

(1) A hot r()llin<2: mill, or, 

(2) A melting shop operated in conjunction with a hot rolling 
mill, or, 

(3) All other equipment used in processes and operated in con- 
junction with a rolling mill for the ])roduction or processing of in- 
dustry ))roducts, " semifinished j^roducts '' and/or " wi'ouglit indus- 
try products " as hereinabove defined. 

Section 5. Tlie term " Member of Industry " includes, but without 
limitation any individual partnershij), association, corporation or 
other form of enterprise engaged in the Industry, either as an em- 
ployer or on his or its own behalf. 

Section 6. The term " Employee " means and includes any indi- 
vidual engaged in the Industry in any capacity receiving compensa- 
tion for his services, irrespective of the nature or method of pay- 
ment of such compensation, except a Member of Industry. 

Section 7. The term " Employer "' means and includes anyone by 
Avhom any such emploj'ee is employed or compensated. 

Section 8. The term "'Association " means the Nickel Alloys Asso- 
ciation. Inc., a membership corporation organized under the laws 
of the State of New York. 

Article III — Hours of Labor 

maximum hours 

Section 1. No employee shall be permitted to work in excess of 
forty (40) hours in any one (1) w^eek or eight (8) hours in any 
twenty-four (24) hour period except as herein otherwise providecL 

hours for clerical and office employees 

Section 2. No person employed in clerical or office w'ork shall be 
permitted to work in excess of forty (40) hours in any one (1) week, 
except that during any one (1) week in any four (4) weeks' period 
such employee may be permitted to work a maximum of forty-eight 
(48) hours. A normal work day shall not exceed eight (8) hours. 

exceptions to hours 

Section 3. The limitation as to hours of labor as specified in Sec- 
tions 1, 2 and 4 of this Article III shall not apply to the following : 

(a) Employees engaged in emergency maintenance or emergency 
repair work involving breakdown or protection of life or property; 
provided that in such special cases not less than one and one-half 
(I-/2) times the normal wage rate for any employee so employed shall 
be paid for all hours worked in excess of forty (40) hours in any 
one (1) week or eight (8) hours in any one (1) day. 

(b) Outside sales and outside sales service employees. 

(c) Persons in a managerial, executive, supervisory or technical 
capacity and their immediate assistants, provided that this exception 
shall apply to no such employee who is paid less than at a rate of 
$35.00 per week. 

62287° — —544-141 34 2 



(d) Watchmen, who may be permitted to work not in excess of 
eighty-four (84) hours in any fourteen (14) day period or fifty-six 
(56) hours in any seven (7) day period; provided, that no such em- 
ployee shall be permitted to vrork more than six (6) days in any 
seven (7) day period. 

(e) Employees engaged in the preparation, care and maintenance 
of machinery and production facilities, heaters, engineers, firemen, 
stock and shii)ping employees, and truckmen engaged in outside 
deliver;/ and picl^-up service, wlio may be permitted to work not in 
excess of 10% additional hours over the maximum hours allowed in 
any one (1) week, provided, however, that such employee so em- 
ployed shall be paid not less than one and one-half (11/2) times his 
normal wage rate for all hours worked in excess of forty (40) hours 
in any one (1) week, or eight (8) hours in any one (1) da3\ 

(f ) Skilled employees in continuous processes where the restriction 
of hours of labor of such em])loyees would unavoidably reduce or 
interrupt production because of demands inherent or peculiar within 
the processes themselves ; provided that in such cases such employees 
shall not work more than forty-eight (48) hours in any one (1) 
week, and provided further, that such employees so employed shall 
be paid not less than one and one-half (IVo) times his normal wage 
rate for all hours worked in excess of forty (40) hours in any one 
(1) week, or eight (8) hours in any one (1) day. 

(g) During any period in which a concentrated demand upon any 
division of the Industry shall place an unusual or temporary burden 
for ]5roduction work upon its facilities or to meet seasonal or peak 
requirements, or production emergencies, any employee of any such 
division may be permitted to work not more than forty-eight (48) 
hours per week in not more than six (G) weeks in any six (6) 
months of a calendar year; provided, that in such cases such em- 
ployees so employed shall be paid not less than one and one-half 
(V/z) times his normal wage rate for all hours vv-orked in excess of 
forty (40) hours in any one (1) week or eight (8) hours in any one 
(1) *day. 

STANDAP.D WEEK 

Section 4. No employee shall be permitted to work more than six 
(6) days in any seven (7) day period. 

employment by several employers 

Section 5. No employer sliall knowingly permit any employee to 
work for any time, which, v/hen totalled with that already performed 
with another employer or employers in this Industry or other 
Industries exceeds the maximum permitted herein. 

Article IV — Wages 

MINIMUIVI WAGES 

Section 1. No employee, except as herein otherwise specified, shall 
be paid in anj' pay period less tlian at the rate of forty cents (40^) 
per hour. The minimum rates herein provided shall be construed as 



389 

the hirino; rates applyinij to totally unskilled or cominon labor. 
Other classes of labor shall be coinjiensated at rates above such mini- 
inum. Minimum rates in effect on March 15, 1934, which were above 
the minimum specified shall in no case be reduced. 

CLERICAL AND OFFICE EMPLOYEES 

Section 2. No acconntinfj, clerical, sales, or service employees 
workinir on a weekly basis in any office shall be paid less than at the 
rate of Fifteen (15) Dollars per week; provided, however, that 
office boys and girls and messengers may be paid not less than at a 
rate of 80% of the minimum hereinabove specified; and provided 
further, that the number of such boys and girls and messengers so 
paid shall constitute not more than 5% of the total number of office 
employees of any office of any one employer, but in any case each 
employer shall be entitled to employ at least one such employee. 

riECEWORK C0:^.IPENSATI0N MTNI^klUM WAGES 

Section 3. This Article establishes a minimum rate of pay for any 
pay period which shall apply, irrespective of v.hether an employee is 
actually compensated on a time rate, piecework, or other basis. 

female employees 

Section 4. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees, and, when they displace male employees they shall receive 
the same rate of pay as the men whom they displace. The Code 
Authoritj' shall, within ninety (90) daj^s after the effective date of 
this Code, file vrith the Administrator a list of all occupations in the 
Industry in which both men and women are employed. 

"WAGES ABOVE TPIE MINIMUM 

Section 5. Equitable adjustments with respect to rates above the 
minimum shall be made within thirty (30) days after the effective 
date of this Code by each employer who has not heretofore made 
such adjustments under the National Industrial Recovery Act in 
every case where such adjustments are required to give effect to the 
pur])oses and intent of the National Recovery program. In no event, 
however, shall hourly rates be reduced in making such equitable ad- 
justments. Within thirty (30) days after the effective date of this 
Code each Member of Industiy shall make a report of such adjust- 
ment Avhether made prior to or subsequent to date of approval of 
this Code to the Code Authority. 

HANDICAPPED PERSONS 

Section G. 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'- 



390 

nated by the United States Department of Labor, a certificate aii- 
tliorizinc^ such person's employment at such wages and for such hours 
as shall be stated in the certificate. Such Authority shall be o;uided 
by the instructions of the United States Department of Labor in 
issuino- certificates to such persons. Each employer shall file monthly 
with the Code Authority a list of all such persons employed by him, 
showing the vv'ases paid to, and the maximum hours of work for 
such employee. 

PAYMENT or W^\GES 

Section 7. Each employer shall make payment of all wajres in 
lawfvd currency or by negotiable check therefor, paj'able on demand. 
These wages shall be exempt from any payments other than those 
voluntarily ordered paid by the wage earner, or required by law. 
Wages shall be paid at no greater inter^'al than one-half month, and 
salaries at no greater interval than one month. No employer shall 
withhold wages, except as otherwise provided by law. 

Article V — General Labor Provisions 

CHILD LABOR 

Section 1. No person under 18 years of age shall be emplo^'ed ex- 
cept in clerical, office, sales, sales service, technical, and engineering 
departments, and no person under 16 years of age shall be employed 
in any capacity. In any state an employer shall be deemed to have 
complied wdth this provision as to age if he shall have on file a cer- 
tificate or permit duly signed by the Authority in such state em- 
powered to issue employment or age certificates or permits showing 
that tlie employee is of the required age. 

PROVISIONS OF THE ACT 

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

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

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

reclassification of employees 

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. 



391 

STANDARDS FOR SAFETY AND HEALTH 

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 for this 
Industry shall be submitted to the Administrator by the Code 
Authority within six (6) months after approval of this Code. 

STATE LAWS 

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, 
sanitary or general working conditions, or insurance, or fire protec- 
tion, then are imposed by this Code. 

POSTING 

Section 6. All employers shall post and keep posted complete 
copies of this Code and all amendments thereto in conspicuous places 
accessible to employees, and shall comply with all rules and regula- 
tions relative to posting which may from time to time be prescribed 
by the Administrator. 

COMPANY TOWNS AND STORES 

Section T. Employees other than maintenance or supervisory men, 
or those necessary to protect property, shall not be required as a 
condition of employment, to live in houses rented from or specified 
by the employer. No employee shall be required, as a condition of 
employment, to trade at a store owned or specified