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

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NATIONAL RECOVERY ADMINISTRATION 

HUGH S. JOHNSON, Administrator for Industrial Recovery 



CODES OF FAIR COMPETITION 

Nos. 445-463 
AS APPROVED 

MAY 27-JUNE 11, 1934 

WITH SUPPLEMENTAL CODES, AMENDMENTS 

EXECUTIVE AND ADMINISTRATIVE 

ORDERS ISSUED BETWEEN 

THESE DATES 



VOLUxME XI 




WE DO OUR PART 



, , UNITED; STATK3 , ■ ' ■ 

GC"VERN?JL^Nt PRVKT>yG OFUCl 

WASHINGTON : 1934 



MAY 26 1936 



^ 

0^^^ 



\.\A^o 



Ctoqpd to credit acct 
with Supt. of Documtnb 



CONTENTS 



Code 
No. 



Industry 



Date ap- 
proved, 1934 



445 
446 
447 
448 
449 
450 
451 
452 
453 
454 
455 
456 
457 
458 
459 
460 
461 
462 
463 



CODES OF FAIR COMPETITION 

Baking — 

Canning 

Private Home Study School 

Optical Wholesale Industry and Trade 

Wholesale Monumental Granite 

Dog Food - 

Candlewick Bedspread 1 

Oyster Shell Crushers 

Licorice 

Optical Retail Trade 

Metal Etching 

Ice Cream Cone 

Cap and Cloth Hat 

Wholesale Confectioners' 

Bottled Soft Drink .-_ 

Preserve, Maraschino Cherry and Glace Fruit- _ 

Vegetable Ivory Button Manufacturing 

Wholesale Tobacco Trade 

Candy Manufacturing 



May 28 
May 29 
May 31 
May 31 
May 31 
May 31 
June 1 
June 
June 
June 
June 
June 
June 
June 6 
June 7 
June 8 
June 9 
June 9 
June 11 



AMENDMENTS 



Machinery and Allied Products, No. 3 

Iron and Steel, No. 1 

Athletic Goods Manufacturing, No. 1 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 1 

Textile Machinery Manufacturing, No. 1 

Knitted Outerwear, No. 1 

Washing and Ironing Machine Manufacturing, No. 2 

Bituminous Coal, No. 3 

Lumber and Timber Products, No. 11 

Men's Garter, Suspender and Belt Manufacturing, No. 2 

Funeral Supply, No. 2 

Hosiery, No. 3 

Rayon and Silk Dyeing and Printing, No. 1 

Retail Farm Equipment Trade, No. 1 

Graphic Arts, No. 3 1 

Underwear and Allied Products Manufacturing, No. 3 

Graphic Arts, No. 4 

Lumber and Timber Products, No. 12 



SUPPLEMENTS 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 27 (For Galvanized Ware Manu- 
facturing) 



5-28-34 
5-30-34 
5-31-34 

6- 1-34 
6- 1-34 
6- 2-34 
6- 2-34 
6- 4-34 
6- 5-34 
6- 5-34 
6- 6-34 
6- 7-34 
6- 7-34 
6- 7-34 
6- 8-34 
6- 8-34 
6- 9-34 
6-11-34 



5-17-34 



CONTENTS— Continued 



SUPPLEMENTS— Continued 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 28 (For Job Galvanizing Metal 
Coating) W'Z" 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 29 (For Washing Machine Parts 
Manufacturing) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 30 (For Milk and Ice Cream Can 
Manufacturing) -- 

Wholesaling or Distributing Trade, No. 9 (For Leather and 
Shoe Findings Trade) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 31 (For Warm Air Pipe and 
Fittings Manufacturing) 

Packaging Machinery Industry and Trade, No. 2 (For Paper 
Box Machinery Industry and Trade) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 32 (For Hog Ring and Ringer 
Manufacturing) 

Fabricated Metal Products Manufacturing and Metal Finish- 
ing and Metal Coating, No. 33 (For Flexible Metal Hose and 
Tubing Manufacturing) ,-<":".- t~" 

Fabricated Metal Products Manufacturing and Metal finish- 
ing and Metal Coating, No. 34 (For Wire Rope and Strand 
Manufacturing) 

Construction, No. 10 (For Resilient Flooring Contracting) 

Construction, No. 11 (For Wood Floor Contracting) 

Machinery and Allied Products, No. 9 (For Diamond Core Drill 
Manufacturing) ----.---- 

WholesaUng or Distributing Trade, No. 10 (For Furriers 
Supplies Trade) .---■ 

Machinery and Allied Products, No. 10 (For Mechanical 
Lubricator) -- 

Machinery and Allied Products, No. 11 (For Contractors 
Pump) ---■ 

Machinery and Allied Products, No. 12 (For Locomotive 
Appliance) 

Construction, No. 12 (For Insulation Contractors) 

Machinery and Allied Products, No. 13 (For Waterpower 
Equipment) - - - - 

Machinery and Allied Products, No. 14 (For Rolhng Mill 
Machinery and Equipment) 

Fabricated Metal Products Maiuifacturing and Metal Finishing 
and Metal Coating, No. 35 (For Cutting Die Manufacturing) 

Construction, No. 13 (For Kalamein) 

Electrical Manufacturing, No. 1 (For Refrigeration) 

Machinery and Allied Products, No. 15 (For Pulverizing 
Machinery and Equipment) 

Wholesaling or Distributing Trade, No. 11 (For Fur Wholesal- 
ing and Distributing Trade) ' 

Machinery and Allied Products, No. 16 (For Steam Engine 

Manufacturing) 

Machinery and Allied Products, No. 17 (For Rock and Ore 

Crusher) 

Machinery and Allied Products, No. 18 (For Reduction 
Machinery) 



EXECUTIVE ORDER 

Construction, Apr)ointing Chairman for Planning and Adjust- 
ment Board for the 



5-17-34 

5-17-34 

5-17-34 
5-17-34 

5-18-34 
5-21-34 

5-22-34 

5-24-34 

5-24-34 
5-29-34 
5-29-34 

5-31-34 

6- 2-34 

6- 4-34 

6- 5-34 

6- 5-34 
6- 7-34 

6- 7-34 

6- 7-34 

6- 8-34 
6- 9-34 
6- 9-34 

6- 9-34 

6- 9-34 

6-11-34 

6-11-34 

6-11-34 



6- 6-34 789 



CONTENTS— Continued 



ADMINISTRATIVE ORDERS 

Bituminous Coal, Wholesale Coal and Retail Solid Fuel, Dis- 
allowing special exemptions for sales to hospitals 

Codes of Fair Competition, Use of Labels under — containing 
mandatory labor provisions 

Daily Newspaper Publishing Business, Additional miembers on 
the Newspaper Industrial Boara 

Service Trades or Industries, Partial suspension of Codes for.. 

Wool Textile, Sales Yarn Division rules of Practice and Mer- 
chandising 

Fishing Tackle, Home Workers, Requiring registration of 

Government contracts and contracts involving the use of 
government funds. Agriculture, Cooperative agreements 
with tne Department of 

Government cont'-acts and contracts involving the use of 
government funds, American University, Lessor for quarters 

Government contracts and contracts involving the use of 
government funds, Foreign Origin, Materials and articles of. 

Motor Vehicle Retailing Trade, Exemption of employers in 
towns under 2,500 population 

Umbrella Frame and Umbrella Hardware, Contracts, Stay of 
Code provisions relevant to readjustment of existing 

Photographic ana Photo Finishing, Code Authority, Extension 
of time for election of permanent 

Sanitary Napkin ar.d Cleansing Tissue, Permanent stay of 
certain provisions of the code relevant to sales to hospitals.. 

Trucking, Elections, display insignia, file tariffs and register, 
Extending time to conduct 

Restaurant, Hours exemptions, Granting limited 

Retail Food and Grocery Tirade, Meat at retail, Exemption 
for selling 

Cordage and Twine, Binder Twine Manufacturers, Exemption 
relevant to sales below price lists for the 

Cotton Textile, Productive machinery, Exemption from limi- 
tation in the operation of 

Motion Picture, Fair Practice Provisions, Providing for 

Business Furniture, Storage Equipment, and Filing Supply, 
Discounts, Approval of exemption from uniform schedule of 
q uantit.y 

Cotton Textile, Productive machinery, Exemption from limi- 
tation in the operation of 

Tanning Extract, Hour provisions. Stay pending amendment.. 

Fishery, Atlantic Mackerel Fishing, Approving curtailment of 
production 

Government Contracts and Contracts involving the use of 
Government Funds, Exemptions for tliose not covered by 
codes, Administrative or Executive Orders 

Government Contracts and Contracts involving the use of 
Government Funds, Leases for Post Office Quarters 

Government Contracts and Contracts involving the use of 

^.Government Funds, Services invited prior to March 14, 1934 

Canvas Goods, Labor provisions, Extending time for Commit- 
tee Report on 

Government Contracts and Contracts involving the use of 
Government Funds, Services for $100 or less 

Index 



5-28-34 
5-28-34 



5-28-34 
5-28-34 



5-28-34 
5-29-34 



5-29-34 

5-29-34 

5-29-34 

5-29-34 

5-29-34 

5-31-34 

5-31-34 

5-31-34 
6- 2-34 

6- 2-34 

6- 5-34 

6- 5-34 
6- 6-34 

6- 7-34 
6- 8-34 

6- 8-;-!4 



&- 9-34 

6-9-34 

6-9-34 

6-11-34 

6-11-34 



CODES OF FAIR COMPETITIOiN 



Approved Code No. 445 
CODE OF FAIR COMPETITION 

FOR THE 

BAKING INDUSTRY 

As Approved on May 28, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Code of Fair Competition for the Baking Industry 

An application havingj been duly made, pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for my approval of a Code 
of Fair Competition for the Baking Industry, and hearings having 
been held thereon and the Administrator having rendered his report 
containing an analj^sis of said Code of Fair Competition together 
with his recommendations and findings with respect thereto, and the 
Administrator having found that said Code of Fair Competition 
complies in all respects Avith the pertinent provisions of Title I of 
said Act and that the requirements of clauses (1) and (2) of sub- 
section (a) of Section 3 of said Act have been met: 

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

1. That the provisions of Article VII, Section 1, paragraph (c) 
in so far as they prescribe a waiting period between the filing with 
the duly designated code authority or agency and the effective date 
of revised price lists be and they are hereby stayed pending my fur- 
ther order either within a period of sixty days from the effective 
date of this Code or after the completion of a study of open price 
associations now being conducted by the National Recovery 
Administration, 

2. That the provisions of Article VII, Section 6, be and they 
hereby are stayed, pending my further order. 

63384° 544-152 34 (i) 



IT IS FURTHER ORDERED that the Code Authority shall 
within ninety (90) days from this date investigate and report to me 
regarding the operation and effect of the provisions of Articles III, 
IV and V, and such provisions shall be subject to such modification 
at the end of said period as I may find necessary in the light of facts 
presented to me, in order to effectuate the purposes of the Act. 

FRANKLIN D. ROOSEVELT. 
Approval recommended : 
Hugh S. Johnson, 

AdTninistrator. 

The Whii-e House, 

May 28, 193^ 



LETTER OF TRANSMITTAL 

The President, 

The White House, 
Sir: This is a report on the Code of Fair Competition for the 
Baking Industry and on the public hearing held in Washington, 
D.C., on January 30th and 31st, 1934, in accordance with the provi- 
sions of the National Industrial Recovery Act. 



The Baking Industry is one of the largest food industries from 
the point of view of number of employees and volume of annual 
business. The value of product of this Industry reached its peak 
in 1929 when a total business of $1,252,000,000.00 was transacted. 
This volume dropped off to $980,000,000.00 in 1931, and to $885,- 
000,000.00 (estimated) in 1933. 

According to the Bureau of the Census figures, adjusted for certain 
known discrepancies there were 186,150 employees in 1929 and 
149,683 employees in 1933 prior to the President's Reemployment 
Agreement. In 1929, a conservative estimate of establishments shows 
a total of 30,000 bakeries which had dropped to 25,000 in 1933. 
Handcraft shops as defined in the Code constitute approximately 
15,000 out of the total number of establishments in existence today, 
while mechanical shops constitute approximately 10,000 of the total 
number of establishments. Prior to the President's Reemployment 
Agreement employment in the two classes of shops is estimated to 
have been 112,183 in mechanical shops and 37,500 in handcraft shops. 

This Industry is scattered widely through every state in the Union. 
It developed originally as a series of small local enterprises where 
the bake shop and the retail store were combined. With the devel- 
opment of traveling ovens and other mechanical devices, the so- 
called mechanical shops came into being, and taking advantage of 
modern production and distribution methods, these mechanical bread 
bakeries gradually have absorbed most of the bread business of the 
country. The small retail baker still exists, but his output is con- 
fined largely to rolls, sweet goods, and specialty breads, for he can 
not compete with the wrapped and sliced bread put out in large 
quantities by the big mechanical wholesale bakers and placed on the 
shelves of every grocery store. In recent years, chain stores have 
installed bakeries in order to furnish their retail outlets with bread, 
which, in many cases, has been used as a leader, and, in some cases, 
as a loss leader. This development has created gi-eat competition 
between the chain bakeries and the wholesale bakeries, and has 
pinched the small retail bakery as well as the small mechanical shop 
by the general lowering of price levels. 

(3) 



Collective bargaining agreements cover beween fifteen and twenty 
percent of all bakery employees, and the higher wage scales obtained 
through these collective bargaining agreements have created high 
cost market areas wherever unionization is effective. 

Under the control of the Administrator, the Code provides for 
tlie establishment of market areas to the end that a certain amount of 
protection against invasion of high cost areas by low cost areas may 
be afforded, in order to protect existing wage scales and employ- 
ment standards in these high cost areas. Competition is so keen 
in this Industry and the number of establishments so great that little 
likelihood exists of the development of a price structure detrimental 
to the consumer or of inordinate profits of the Industry. As a 
further safe-guard, it is contemplated that a representative of the 
Consumers' Advisory Board will be assigned as full time adviser to 
the Administration Member of the Code Authority in order that 
studies may be made of costs and prices in various market areas 
where destructive price cutting appears and the intervention of the 
Administrator is requested. 

The Industry has suffered a substantial loss of volume since 1929, 
and has had to bear the burden of collecting from the consumer the 
processing tax on wheat since the summer of 1933. In spite of in- 
creased costs due to this tax and the increased costs of compliance 
with substitutions to the P.R.A., the average price of bakery products 
has shown a comparatively slight increase over the pHce levels of last 
3'ear. It is commonly stated that ninety (90% ) percent of all bakery 
products were produced at a loss during the last four months of 1933. 

HOUKS ANO WAGES 

The Code provides for a basic forty (40) hour week for mechanical 
bakeries and large handcraft bakeries, wliile small handcraft retail 
bakeries are permitted to work forty -eight (48) hours per week. 
This represents a reduction of four (4) hours per week in mechanical 
bakeries and of two (2) hours per week in small handcraft bakeries 
below P.R.A. requirements. Before P.K.A., the average weekly 
hours in unionized establishments were 42.3 and 40.4 for the mechani- 
cal and handcraft classifications respectively, and in the non-union 
establishments, were 54.3 and 65.5 respectively. The low hours shown 
for unionized handcraft bakeries are due t-o the inclusion of a good 
many shops where twent3^-eight (28), thirty (30), thirty-two (32), 
and thirty-six (36) hour agreements are in foi'ce under share-the-work 
plans. A survey' condu-ctcd by the Industry and covering 104,000 
employe<\s shows that between *March, 1933, and September, 1933, 
over 16,000 employees were put back to work by thost? concerns re- 
porting. Some ot this reemj>ioyment Avas due to business improve- 
ment, but by far the greate.st proportion may be attributed to the 
P.R.A. Additional reemploymeiat due to further drop in Code hours 
and to projx-r comiiliance, it is estimated, will bring employment fig- 
ures bacli: very close to the 1929 peak in spite of a decrease in volume 
of over ten (10%) percent since that year. 

Bakery product .salesmen, whose earnings are calculated in whole or 
in part on a commission basis, are exen)[)t'(Ml from limitation of hours. 
However, salesmen are guaranteed miiiimuiu weeidy earnings in ex- 



cess of previous earning:s in many cases. The problem of limiting 
the hours of this type of employee is a difficult one, but will be at- 
tacked again when the Code has been in operation for some time and 
the Industry is organized for Code Administration. 

Emplo3^ees may work only six daj's out of seven. Due to perish- 
ability of the product, a certain flexibility is permitted in daily hours 
before and after Sundays and holidays, though the eight (8) hour 
day is otherwise standard. 

The Code provides a minimum wage of forty (40^) cents per hour 
with a limited exception applying to icers, wrappers, and cleaners who 
may be employed at eighty (80%) percent of the minimum. In 
certain Southern States, a differential of five (5^) cents per hour 
below the minimum is permitted, which is a partial recognition of a 
substantially larger differential heretofore existing and of certain 
other factors peculiar to the South where hon>e baking is a more 
competitive factor and per capita consumption much lower. Th© 
Code rates show increases from fifty-two (52%) percent to eighty- 
four (84%) percent over previously existing minima, and, it is esti- 
mated that monthly payrolls will be increased by almost $3,000,000.00 
above the June 1933 figures. 

The Baking Industry in the face of a severe struggle for existence 
on the part of many oi its units has shown a splendid spirit of coop- 
eration with the Code Program, and is willing to go further if busi- 
ness improvement, elimination of destructive price cutting and unfair 
methods of competition restore a measure of lost prosperity. 

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

'' I find that : 

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

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

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



6 



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

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

For the above reasons this Code 
approval. 

Respectfully, 



hereby recommended for 



Hugh S. Johnson, 

AdijvinistratoT. 



May 27, 1934. 



CODE OF FAIR COMPETIXrON FOR THE BAKING 
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 Baking Industry, and shall be the stand- 
ards of fair competition for such industry, and shall be binding upon 
every member thereof. 

Article II — Definitions 

Section 1. Baking Indu-atry. — The term " Baking Industry " or 
" Industry " as used herein shall mean the manufacture, distribution 
including trucking, and/or sale, in any numner whatsoever, of bakery 
products. Said term shall not include (a) hotels, clubs, restaurants 
and similar places where bakery products are manufactured exclu- 
sively for consumption at the place of manufacture, (b) wholesale 
or retail groceries, provided the owner or operator thereof does not 
manufacture, directly or indirectly, through an agent, affiliate unit, 
or otherwise, any part of the bakery products offered for sale therein. 
If wholesale or retail groceries do so manufacture any part of the 
bakery products offered for sale therein, as to them said term shall 
include only the manufacture, distribution including trucking, and/or 
sale of the bakery products manufactured by them. 

Section 2. B((ke7i/ Products. — The term " bakery products " as 
used herein includes bread, rolls, cakes, pies, cookies, doughnuts and 
similar goods, and other sweet yeast raised goods, but does not in- 
clude biscuits, crackers, pretzels, nuitzohs or ice cream cones. 

Section 3. Evifloyee. — The term " employee " as used herein 
includes any and all persons engaged in the Industry, however com- 
pensated, except members of the Industry. 

Section 4. EmjyJoycr. — The term "emploj'er" and/or "baker" 
as used herein shall mean anyone by whom any such employee is com- 
pensated or employed. 

Section 5. Meiiiber of the Industry. — The term "member of the 
industry '" as used herein includes any individual, partnership, asso- 
ciation, corporation or other form of enterprise engaged in the In- 
dustry^ either as an employer or on his or its own behalf. 

Section 6. Salesman. — The term " salesman " as used herein shall 
mean the employee on bakery routes, whether wholesale, house-to- 
house, or otherwise, and any other sales employee whose principal 
duties and functions are performed not less than sixty per cent 
(60%) of his working hours outside the establishment or any branch 
thereof by which he is employed, and who regularly delivers the 
bakery products which he sells. 

63384° 544-152 34 2 (7) 



8 

Section 7. Executive. — The term "excc-utive" as used herein shall 
mean an employee responsible for the management of a business or 
a recognized subdivision or department thereof in the Industry, and 
shall include supervisors of sales routes. 

Section 8. Professional Person. — The term " professional person " 
as used herein shall mean research technicians, chemists, advertising 
and other specialists. 

Section 9. Solic/for. — The term " solicitor " as used herein shall 
mean an employee whose primary duties are to solicit accounts and 
make adjustments in the Industr3^ 

Section lO. Outside Employee. — The term " outside employee " as 
used herein shall mean an emploj^ce engaged primarily in delivering, 
instailing or servicing equipment outside the establishment of 
a member of the industry, and shall include stable and garage 
employees. 

Section 11. Watchman. — The term " watchman " as used herein 
shall mean an employee engaged primarily in safeguarding the 
establisliment of a member of the Industry. 

Section 12. Independent Distributor. — The term " independent 
distributor " as used herein shall mean any person commonly known 
in the Industry as a " bob-tailer " who buys bakery products from 
other members of the Industry for the purpose of resale and delivery 
from privately owned or hired vehicles to the wholesale or retail 
trade or to the consumer. 

Section 13. Ilandcraft Shop. — The term " handcraft sliop " as 
used herein shall mean those establishments in the Industry which 
use no power-driven machines other than mixers and doughbrakes in 
the processing of any of their products, and who do not employ more 
than ten (10) bake shop employees. This term shall not apply to 
a processing department of a large or small mechanical bread 
bakery. After the effective date of this code, a handcraft shop 
installing any power-driven processing equipment other than the 
above shall immediately be reclassified as a mechanical shop. 

Section 14. South. — The term " South " as used herein shall mean 
Virginia, North Carolina, Tennessee, South Carolina, Georgia, 
Florida, Kentucky, Alabama, Mississippi, Louisiana, Arkansas, 
Oklahoma and Texas. 

Section 15. Retail Baker. — The term " retail baker " as used herein 
shall mean and include any person who manufactures and sells 
bakery products to the consumer through his own retail store, who 
owns or controls not more than three (3) stores, and who sells at 
least seventy per cent (70%) of his products at retail over the 
counter. 

Seciton 16, Local Wholesale Baker. — The term " local wholesale 
baker " as used herein shall mean and include persons who manufac- 
ture and sell bakery products at wholesale and who manufacture 
entirely within one State. 

Section 17. Multistate Baker. — The term " multistate baker " as 
used herein shall mean and include persons who manufacture bakery 
products in more than one State. 

Skc-hon 18. Cake Baker. — The term "cake l)akcr " as used herein 
tliall m(;an and include pei'sons wlio n)amifacture and sell, at whole- 
sale, bakery products of wliich at least seventy-five percent (T57o) 
is cake. 



Section 19. Specialty Baker. — The term " specialty baker " as 
used herein shall mean and include persons who manufacture and 
sell bakery products of a type and kind to fit a particular racial or 
national taste and/or market demand for special variety products 
not considered as standard in the Industry (as compared with units 
of products generally sold in large volume) and the production of 
which requires special skill. 

Section 20. Specialty Baker — White Bread. — The t^rm " specialty 
baker — white bread " as used herein shall mean and include specialty 
bakers, the majority of whose production is made of white wheat 
flour. 

Section 21. Sj^ieciaJty Baker — Dark Bread. — The term " specialty 
baker — dark bread " as used herein shall mean and include specialty 
bakers, the majority of whose production includes rye, wholewheat or 
pumpernickel flours. 

Section 22. House -to -House Baker. — The term " house-to-house 
baker " as used herein shall mean and include persons who manu- 
facture bakery products and distribut^^ them by their own vehicles 
directly to the consumer at the point of consumption. 

Section 23. Pie Baker. — The t^rm " pie baker " as used herein 
shall mean and include persons who manufacture and sell, at whole- 
sale, bakery products of which at least seventy-five per cent (75%) 
is pies. 

Section 24. Midtiple Unit Ret ail Baker. — The term " multiple unit 
retail baker " as used herein shall mean and include persons who 
manufacture bakery products and distribute them to the consumer 
through their own retail stores and who own or control four (4) or 
more such outlets, and shall include chain store bakers. 

Section 25. State. — The term '' State " as used herein includes the 
several States, District of Columbia, the Territories of the United 
States, and the insular possessions and other places under the juris- 
diction of the United States to which the Act is applicable. 

Section 2G. Act and Administrator. — The terms "Act " and "Ad- 
ministrator " as used herein shall mean Title I of the National In- 
dustrial Recovery Act and the Administrator for Industrial 
Recovery. 

Section 27. President. — The term " President " means the Presi- 
dent of the United States, 

Section 28. Market Area. — The term " market area " as used 
herein means a geographic market, the boundaries of which shall be 
defined by the Code Authorit}^ subject to the approval of the Admin- 
istrator. 

Section 29. Population. — " Population " for the purposes of this 
code shall be determined by reference to the latest Federal Census. 

Article III — General Labor Provisions 

Section 1. Mandatory Provisions. — (a) Emploj^ees shall have the 
riglit 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. 



10 

(b) No employee and no one seeking employment shall be required 
BS 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 pnj, and other conditions of employment approved 
or prescribed by the President. 

Section 2. /Sfamdards of Health and Safety. — 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 
Authoritj' to the Administrator within six months after the effective 
date of the Code. 

Section 3. Child Lobar. — No person under the age of sixteen (16) 
years 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 v/ithin thirty (30) days 
after the effective date of tlits code a list df such operations or 
occupations. 

Section 4. State Laws. — Within e-ach State no provision of this 
code shall supersede any law of such State imposing on empi^yers 
more stringent requirements regulating the age of employees, wages, 
hours of work, or health, fire or general working conditions, than are 
imposed under this code. 

Section 5. Posting. — Within ten (10) days after the effective date 
of this code each employer shall post and maintain in a conspicuous 
place, accessible to employees, copies of the hour, wage and general 
labor provisions of this code. 

Section 6. Reclassification of Employees. — Employers shall not, 
with intent to defeat the purposes of the Act or the provisions of this 
code, or for purposes of subterfuge, change the method of payment 
of compensation, reclassify employees or duties of occupations per- 
formed by employees, or discharge employees in order to reemploy 
them at lower rates. 

Section 7. Employment of Relatives. — Workers shall not, by 
reason of relationship of employer and employee other than that of 
marriage, be exempt from the })rovisions of this code : and a«iiy person 
working for a member of the Industry, other than the wife or hus- 
l)and of said member, shall be considered an " emploj^ee " as herein 
defined. Partners and stockholders of members of the Industry and 
othei-s having proprietary interests in members of the Industry- 
shall not, if employed thereby, be exempt from the hour, wage and 
general labor provisions of this code. 

Article IV — Hours 

Rfxiion 1. Ma-;ji:irnym. Llours. — No employee shall be permitted to 
work more than forty (40) hours per week or more than eight (8) 
liours per day, witli the f<^lIowing exceptions and limitations to 
exceptions: 

(a) Executives, solicitors and professional persons who receive 
tliiity-five dollars ($35) or more per week in cities and towns of 
over 100,000 population or the innnediate trade areas thereof, or 



11 

thirty dollars ($30) or more per week in cities and towns of less 
than 100,000 population; provided, however, that on any shift in 
any processing department there shall be not more than one (1) 
executive for every eight (8) employees or fraction thereof. 

(b) Salesmen whose earnings are calculated in whole or in part 
on a commission basis. 

(c) Chauffeurs, supply truclmien, deliA^ery men not engaged in 
selling, and outside employees, provided that they shall not be 
permitted to work more than fortj^-eight (48) hours per week. 

(d) Firemen, engineers and oilers, provided that they shall not be 
permitted to work more than forty-four (44) hours per week or 
more than nine (9) hours per day. 

(e) Watchmen, provided that the}^ shall not be permitted to work 
more than fifty-six (56) hours per week. 

(f) Accounting, clerical and other office employees may work 
forty (40) additional hours per calendar year to cover Christmas, 
inventory and other peak times. 

(g) Sales employees in retail stores, provided that they shall not 
be permitted to work more than fortj^-eight (48) hours per week 
or more than ten (10') hours per day. 

(h) Employees in handicraft shops, provided that they shall not 
be permitted ^to work more than forty-eight (48) hours per week; 
or more than eight (8) hours per day, except that within said weekly 
limitation such employees may work eleven (11) hours per day on 
work days immediat<^ly preceding and following Sundays and holi- 
days and on occasions of unusual demand due to local conditions. 

(i) Employees in other than handcraft shops, provided that they 
shall not be permitted to work more than forty (40) hours per week; 
or more than eight (8) hours per day, except that within said weekly 
limitation such of said employees as are engaged in a production or 
shipping department and whose maximum daily hours are not 
otherwise herein extended may work ten (10) hours per day on 
work days immediately preceding and following Sundays and 
holidays and on occasions of unusual demand due to local conditions. 

(j) Employees on emergency repair or emergency maintenance 
work involvin*^ mechanical breakdowns or protection of life and 
property, provided that any employee so working in excess of the 
maximum prescribed for him herein shall be paid for the excess 
hours by at least one and one-third his regular hourly rate. 

Section 2. Maximum Number of Days. — No employee, except 
those mentioned in paragraphs (a) and (j) of Section 1 of this 
Article, shall be permitted to work more than six (6) days in any 
seven (7) day period. 

Section 3. Employment hy Several Em.'ployers. — No employer 
shall knowingly employ any employee for any time which when 
totaled with that already performed for another employer or em- 
ployers exceeds the maximum herein prescribed for such employee. 

Article V — Wages 

Section 1. Office Em,ployees. — No ax;counting, clerical or other 
office employee shall be paid less than at the rate of sixteen dollars 
($16) per week in cities and towns of over 500,000 population or 
the immediate trade areas thereof, fifteen dollars ($15) per week 



12 

in cities and towns of between 250,000 and 500,000 population or the 
immediate trade areas thereof, or foiiiieen dollars ($14) per week 
in cities and towns of under 250,0(X) population. Office, messenger 
and delivery boys may be paid a minimum of two dollars ($2) per 
week below the minimum wage otherwise applicable, but the num- 
ber of emplo^^ees so classified in any plant shall not exceed one (1) 
to every ten (10) office employees or fraction thereof employed in 
said i^lant. 

Section 2. Store Employees. — No store employee shall be paid 
less than at the rate of fifteen dollars ($15) per week in cities and 
towns of over 500,000 population or the immediate trade areas 
thereof, fourteen dollars ($14) per week in cities and towns of 
between 250,000 and 600,000 population or the immediate trade areas 
thereof, thirteen dollars ($13) per week in cities and towais of be- 
tween 2,500 and 250,000 population or the immediate trade areas 
thereof, or twelve dollars ($12) per week in cities and towns of 
under 2,500 population. 

Section 3. Salesnien. — No salesman, regardless of the rate of 
commission or the point at which it starts, shall be paid less than 
at the rate of twenty-two dollars ($22) per week in cities and towns 
of over 500,000 population or the immediate trade areas thereof, 
tw^enty dollars ($20) per week in cities and towns of between 50,000 
and 500,000 population or the immediate trade areas thereof, or 
eighteen dollars ($18) per week in cities and towns of under 50,000 
population. Salesmen operating in two (2) or more cities and towns 
or trade areas not in the same population class hereunder shall be 
paid not less than at the rate of the highest of the appropriate 
minimum wages prescribed in this Section. 

Section 4. Other Employees. — No other employee shall be paid 
less than at the rate of forty cents (40^) per hour, except icers, 
wrappers and cleaners, who shall be paid not less than 80% of 
said rate, provided, however, that the term " cleaner " as used herein 
shall include only employees engaged primarily in cleaning the bake- 
shop or the equipment therein. 

Section 5. Southern Differentials. — In the South the minimum 
wages prescribed in Sections 2 and 3 of this Article may be at the 
rate of one dollar ($1) less per week, and in Section 4 of this Article 
at the rate of five cents (60) less per hour. 

Seciton G. Part-time Employees. — Part-time employees fhali be 
paid not less than at the rate of an hourly v/age proportionate to 
the rate specified in the foregoing Sections of this Article for the 
occupations engaged in. 

Section T. Application of Minimum. — This Article establishes 
mitiimum rates of pay which shall apply, irrespective of whether an 
employee is actually compensated on a time rate, piece-work or other 
ba.sis. 

SpxrnoN 8. Uandicapped Persons. — A person whose eariiing ca- 
pacity is limited because of age, physical or menttd handicap, or 
other infirmity, may be employed on light work at a wage below the 
minimum established by the Code, if the employer obtains from 
the State authority, designated by the United States Department 
of Labor, a certificate authorizing such person's employment at such 
wages and for su(;h hours as shall be stated in the certificate. Such 
authority shall be guided by the instructions of the United States 



13 

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 9. Deductions. — Wages shall be exempt from fines; and 
from charges and deductions, except for employees' voluntary con- 
tributions to pension, insurance or benefit funds, and except as may 
be required by State legislation enacted for the benefit of employees. 
Deductions for other purposes may be made only when the same are 
covered by agreement reduced to writing and kept on file by the 
employer open to the inspection of the Administrator. The agree- 
ment of hire shall provide that the wages of no employee shall be 
withheld beyond the customary time for the payment of wages to 
co-employees except upon service of legal process or other papers 
lawfidly requiring same. 

Section 10. Wages above Minimum. — Xo employee whose normal 
full-time weekly hours averaged over the four (4) weeks ending 
June 10, 1933, are as a result of the adoption of this code reduced 
by sixteen and two-thirds per cent (16%%) or less shall have his 
or her full-time weekly earnings reduced ; and any emplo3'ee whose 
said normal full-time weekly hours are so reduced by more than 
sixteen and two-thirds per cent (1(5%%) shall have his or her 
hourly rate of pay increased by at least twenty per cent (20%). 
The above sliall not apply to any employee whose earnings averaged 
over the aforementioned period were more than thirty-five dollars 
($.%.0()) per week. 

Employees whose earnings averaged over the aforementioned pe- 
riod were more than thirty-five dollars ($35.00) per week and whose 
hours are reduced as a result of tlie adoption of this code shall have 
their wage rates equitably readjusted in order to maintain fair 
differentials, and reports of such readjustments shall be made to 
the Code Authority within thirty (30) days after the effective date 
of this code. In no case shall hourly rates of pay be reduced. 

Section 11. Payment of Wages. — Employers shall make payment 
of all wages due in lawful currency or in negotiable checks payable 
on demand. The agreement of hire shall provide that wages be paid 
at least as often as at the end of every two-week period and salaries 
at least as often as at the end of each month's period. 

Section 12. Female Employees. — Male and female employees cus- 
tomarily performing substantially the same duties or doing the same 
work shall receive the same rates of pay; provided, that when male 
emplo^^es perform work customarily done by female employees 
only cluring hours when female labor is prohibited by applicable 
law, it shall not be required that female employees doing such work 
at other times be paid at the same rate as such male employees. 

Article VI ^ — Administration 

Section 1. C omposition. — (a) The National Bakers Council is set 
up as the Code Authority of the Baking Industry to cooperate with 
the Administrator in the administration of this code and as a plan- 
ning and fair practice agency for the Baking Industry. The Code 

" See paragraph 3 of order approving this code. 



14 

Authority shall consist of sixteen (16) members who shall be rep- 
res-entatiA'-e of the Baking Industry and one (1) to three (3) mem- 
bers, without vote or compensation by the Industry, appointed by 
the Administrator. 

The sixteen (16) representatives of the Baking Industry shall 
be elected by and from the members of the separate divisions of the 
Industry, which divisions are hereby established, and the number 
of representatives from each division shall be as follows: 

Five (5) Retail Balvers' Division 

Three (3) Local Wholesale Bakers' Division 

Two (2) Multistate Bakers' Division 

One (1) Cake Bakers' Division 

One (1) Specialty Bakers' — White Bread Division 

One (1^ Specialty Bakers' — Dark Bread Division. 

One (1) House-to-House Bakers' Division 

One (1) Pie Bakers' Division 

One (1) Multiple Unit Retail Bakers' Division 

(b) The Code Authority shall select a chairman who shall be 
its chief executive officer without vote and who need not be a member 
of the National Bakers Council. 

(c) Each division of the Industry may have an alternate for each 
representative of such division. 

(d) The National Bakers Council shall continue to act as the 
Code Authority, subject to the approval of the Administrator. Mem- 
bers and alternates of the Code Authority on the effective date of 
this code shall continue in office for the period of one year imraedi- 
atel}'^ following said eiiective date. The manner of election of sub- 
sequent members and alternates shall be prescribed by the Code 
Authority, subject to the approval of the Administrator. Irregular 
vacancies in the Code Authority may be fdled in the manner pro- 
vided for the original selection of members and alternates, those 
filling such vacancies to hold office during the unexpired terms of 
their predecessors. 

(e) In order that the Code Authority shall at all times be truly 
representative of the Baking Industry and in other respects comply 
with the provisions of the Act, the Administrator may provide such 
hearings as he deems proper; and thereafter if he shall find that 
the Code Authority is not truly representative and does not in other 
respects comply with the provisions of the Act, he maj^ require an 
appi'opriatc modification in the method of selection of the Code 
Authority. 

(1) Nothing contained in this Code shall constitute the members 
of the Code Authority partners for any purpose; nor shall any 
meujber of tlie Code Autliority exercising reasonable diligence in the 
conduct of his duties hereunder be liable in any manner to anyone 
for any act of any other member, officer, agent or employee of the 
Code Authoj'ity, nor be liable to anyone for any act or omission to 
act under the Code, except Hor his own wilfid misfeasance or non- 
feasance. 

(g) Any member of the Industry complying with tlie provisions 
of this code and paying his full share of the expenses of the ad- 
ministration tfnireof is entitled to participate in the selection of the 
membeis and alternates of the Code Authority and to participate 



15 

in and share the benefits of its activities and shall, subject to the 
regulations of the Code Authority and the Administrator, be en- 
titled to the use of N.R.A. msignia. 

Section 2. Local Affeneks. — (a) The Code Authority shall, .sub- 
ject to approval by the Administrator, supervise the setting up of 
local (State, regional, and/or market area) code authorities and of 
planning and fair practice, divisional and/or other local agencies for 
the purpose of assisting in the administration of this code within 
States, regions and/or market areas. 

(b) Application for the establishment of any such local code 
authority or agency, and its recommendations and reports after 
establishment, shalfba transmitted promptly to the Code Authority, 
which shall advise the Administrator thereof. 

(c) Within the geographic limits of any State, regional or market 
area which, subject to the approval of the Administrator, niay be 
created by the Code Authority for administrative purposes, and sub- 
ject to the jurisdiction for enforcement purposes of the duly desig- 
nated enforcement agency for that area, divisions or subdivisions of 
the Industry may, subject to the approval of the Code Authority and 
the Administrator, establish local code authorities and planning 
and fair practice, divisional and/or other local agencies upon ap- 
plication as above provided, which shall be self-governing in respect 
to conditions or problems relating exclusively to such divisions or 
subdivisions. 

(d) Subject to the approval of the Administrator, the Code Au- 
thority may increase or modify the number of the aforementioned 
local code authorities and agencies, create State, regional and market 
areas and from time to time relocate such areas when the best inter- 
ests of the Industry and proper administration of the Code so require. 

(e) IMembers and alternates of the Code Authority shall at all 
times be eligible to hold office as members of the aforementioned local 
code authorities and agencies. 

(f) Membership in any trade or industrial association or group 
participating, directly or indirectly, in the selection and activities 
of the Code Authority or of any local code authority or agency shall 
be open to all'members of the Industry, and said associations and 
groups shall impose no inequitable restrictions on admission to 
membership. 

(g) Each of said trade associations and groups shall submit to the 
Administrator, through the Code Authority, two copies of its Arti- 
cles of Association, By-laws and Regulations, and all amendments 
thereto, together with such other information as to membership, 
organization and activities as the Code Authority and/or the Ad- 
ministrator may deem necessary to effectuate the purposes of the Act 
and of this code. 

(h) No provision contained in this Section shall relieve the Code 
Authority of its duties or responsibilities under this code, and every 
local code authority or agency established in accordance with this 
Section shall at all times be subject to and comply with the provisions 
of this code. 

Section 3. Code Ainendinenfs. — (a) No provision amending the 
Code shall be presented to the President by the Code Authority with- 
out notice to all divisions, subdivisions and branches of the Industry 
concerned. 



16 

(b) Upon recommendation by the Code Authority and approval 
by the President or his delegated authority, after such notice and 
hearing as may be specified, supplementary agreements, and recom- 
mendations or provisions for respective State, regional or market 
areas submitted by one or more truly representative associations or 
groups therefrom 'shall become operative as a part-of this code. 

Section 4. Pouters and Duties. — If the Administrator shall de- 
termine that any action of the Code Authority or any agency thereof 
may be unfair or unjust or contrary to the public interest, the Ad- 
ministrator may require that such action be suspended to atford an 
opportunity for investigation of the merits of such action and fur- 
ther consideration by the Code Authority or agency pending final 
action which shall not be effective unless the Administrator approves, 
or unless he shall fail to disapprove after thirty (30) days' notice to 
him of intention to proceed with such action in its original or modi- 
fied form. The Code Authority shall have all general powers and 
duties permitted or required under the Act, including the following: 

(a) To present to the Administrator recommendations (including 
interpretations) based upon conditions in the Industry which will 
tend to effectuate the administration of this code and the policy of 
the Act. Such recommendations shall, on approval by the President 
or his delegated authority after such notice and hearing as may be 
prescribed, become operative as a part of this code. 

(b) To obtain from ail members and/or branches and divisions of 
he Industry and from all local code authorities or agencies established 
hereunder such reports and information as arc required for the ad- 
ministration of this code. To provide for submission by members of 
the Industry of such information and reports as the Administrator 
may de<>m necessary for the purposes recited in Section 3 (a) of the 
Act, which information and reports shall be submitted by the Code 
Authority 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 obligation 
to furnish reports to any government agency. No individual report 
shall be disclosed to any other member of the Industry or other 
party, except to such government agencies as may be directed by 
the Administrator. 

(c) U])on its own initiative or upon the complaint of any person, 
division, group or branch of the Industry affected, through agents or 
otherwise, and subject to such rules and regulations as may be estab- 
lished by the Administrator, to provide for the compliance of the 
Industry with the Code, to make investigations as to the functioning 
and observance of any provision of the Code, hear complaints, con- 
sider pr()])osals for amendments to the Code and make recommenda- 
tions thereon, endorse recommendations for exceptions to the Code, 
and re[)ort the results of investigations to the Administrator. 

(d) To adopt rules and regulations not inconsistent with this 
fode for the purposes of administering and enforcing the Code and 
i-cgulating the manner in which its general business may be 
'•onducted. 

(e) To appoint and/or employ such officers, attorneys, experts, 
assistants, clerks and other employees as are necessary to conduct 
the business of the Code Authority and to define their duties and 



17 

require bonds of them; provided however that nothiiif? herein shall 
relieve the Code Authority of its duties and responsibilities under 
this code, and such employees shall at all times be subject to and 
compl}^ with the provisions hereof. 

(f) To incur all necessary and reasonable expenses as are required 
for the proper administration of the Code, and to pay the same. 
The expenses of administering the Code shall be borne bj'^ the mem- 
bers of the Industry in such proportion and amount and in such 
manner as may be determined by the Code Authority, subject to 
review by the Administrator. 

(g) To use such trade associations and other agencies as it deems 
proper for the carrjdng 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. 

(h) Where the operation of the provisions of this code impose 
an unusual or undue hardship upon any member of the Industry 
or group of such members, such member or such group of members 
of the Industry may make application for relief to the Code Au- 
thority or any local code authority or agency established hereunder 
which, after such notice and hearing as it may deem necessary, may 
recommend such exception to, or modification of, the provisions of 
this code as may be required to effectuate the purposes of the Act, 
provided, however, that members of the Industry addressing appli- 
cations or petitions directly to the Administrator shall at the same 
time send copies thereof to the Code Authority. 

(i) Within four (4) weeks after the effective date of this code, 
to appoint a committee from the Industry to work in collaboration 
with government agencies designated by the Administrator in the 
study of standards of quality, nomenclature, weight, labeling and 
dating of bakery products. This committee shall within six (6) 
months after its appointment submit a report together with recom- 
mendations to the Administrator. 

(j) To appoint a committee or select a representative to cooperate 
with the food and grocery manufacturing industry and to coordi- 
nate the administration of this code with such codes as have been or 
may be adopted by any related trade or industry with a view to 
providing joint and harmonious action in all matters of common 
interest, and to cooperate in securing the amendment of this and 
related codes in accordance with an}^ trade practice provisions ap- 
proved by the Presiderit or suggested by the Administrator for the 
food and grocery manufacturing industr}'. 

(k) To refrain from making public, before final determination, 
any charge or investigation of violation of this code, except as the 
Administrator may direct. 

Article VII — Trade Practices 

Section 1. Open Prices. — (a) The term "open prices" as used in 
this Article means a net pnce list, by product and by weight, which is 
generally published and available and which states all of the seller's 
prevailing terms of sale. 



18 

(b) Each member of the Inclusti-y shall sell his fresh bakery prod- 
ucts upon the basis of open prices, which shall be uniform to all 
buyers located in the same market area under similar conditions of 
delivery, and which shall be strictly adhered to while effective. Any 
variation in open prices based on quantity must be justified by 
comparable savings in cost. 

(c) Each member of the Industry, within ten (10) days after the 
effective date of the Code, shall file with the local code authority or 
agency duly established therein his net price list for each market 
area wherein his bakery products are sold, showing his net current 
prices and terms of payment. If such local code authority or agency 
is not then established hereunder, and until such time as it is so estab- 
lished, each member shall file his net current prices and terms of pay- 
ment for bakery products with the Code Authority. Each price list 
shall be accompanied by a statement from the member filing same to 
the effect that the prices therein are not below" his cost as determined 
pursuant to the provisions of paragraph (c) of Section 2 of this 
Article. Revised price lists may be filed from time to time thereafter 
by any member of the Industry, to become effective five (5) days 
after the filing thereof. The filing of price lists in any market area 
shall be made with such local code authority or agency established 
hereunder for such area as may be designated by the Code Authority. 
Copies of all price lists shall be made available immediately to buyers 
and sellers generally by the Code Authority, local code authority or 
local agency, as the case may be. To meet a competitor's price not 
in violation of this code, any member of the Industry may sell at a 
price lower, or upon terms other, than those contained in his filed price 
lists but he shall within twenty-four (24) hours thereafter, file a 
price list or price lists revised accordingly. If it shall develop that 
the competitor's price was in violation of the Code, the member of 
the Industry so selling in contravention of his filed price to meet the 
competitor's price shall not be deem.ed to have violated the Code if 
w^ithin twenty-four (24) hours he shall have communicated all the 
facts to the local code authority or agency established hereunder and 
designated by the Code Authority to accept his price list for filing. 
Any dissemination by the Code Authority or any local code author- 
ity or agency established hereunder of information contained in the 
price lists of members of the Industry shall be effected without inter- 
pretation or comment. 

(d) No member of the Industr}^, except in meeting a competitor's 
price, as above provided, shall sell or offer to sell, directly or indi- 
rectly or by any subterfuge, any fresh bakery products at prices 
other than those set forth in his open prices.^ 

Section 2. Destructive Price Cutting. — (a) When the Code 
Authority determines that an emergency exists in the Industry and 
that the cause thereof is destructive price-cutting such as to render 
ineffective or seriously endanger the maintenance of the provisions of 
this code, the Code Authority may cause to be determined the lowest 
reasonable cost of particular products of the Industry for a particu- 
lar market area, such determination to be subject to such notice and 
hearing as the Administrator may require. The Administrator may 

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



19 

approve, disapprove or modify the determination. Thereafter, dur- 
ing the period of tiie emergency, it shall be an unfair trade practice 
for any member of the Industry to sell or offer to sell in said market 
area 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 
reasonabl-e cost of such products, "IVhen 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. 

(b) If in the opinion of the Code Authority any price list indi- 
cates price-cutting which is destructive and which would prevent in 
the Industry effectuation of the policy of the Act, the Code Author- 
ity may notify the Administrator who may make such investigation 
and take such action as he deems necessary. 

(c) No member of the Industry shall sell fresh bakery products 
below cost, except to meet a competitor's price not in violation of 
the Code. The Code Authority shall, as soon as is practicable, and 
subject to the approval of the Administrator, prescribe for each 
division or subdivision of the Industry elem.ents of cost, methods 
and forms for reporting the same, and basic minimum cost ac- 
counting requirements. Pending such determination by the Code 
Authority, a statement in the form prescribed by the Code Authority 
and approved by the Administrator tliat the prices filed are not 
below cost shall be sufficient. Nothing in this paragraph shall pro- 
hibit any member of the Industry from continuing or initiating his 
own system of cost accounting, provided that the same fuliilLs suid 
minimum requirements. 

Seciton 3. Discounts and Rebates. — No member of the Industry 
shall give or make any discounts, allowances, refunds or rebates, 
whether in tlie form of money or otherwise. No member of the 
Industrj' shall extend to purchasers special services or privileges not 
extended to all purchasers. Nothing contained in this Section shall 
prohibit variations in open prices based upon quantity as above 
provided. 

Section 4. Advertising Allowan-ces. — No member of the Industry 
shall give or make any advertising allowance or payment for special 
services to any consumer, dealer, purchaser or group of purchasers 
or their agents. 

Section 5. Frizes. — No member of the Industry shall use lotteries, 
prizes, wheels of fortune or other games of chance or things involv- 
lUCT lotteries in connection with the sale of bakery products. 

Section 6. Premiums and Coupons. — No member of the Industry 
shall give coupons or premiums. The term " coupons " shall mean 
the wrapper of a bakery i>roduct or other paper redeemable or ex- 
changeable for bakery products or other articles of value, with or 
without the pa^'mcnt of additional money. The term " premiums '* 
shall mean any article of value or use given with bakery products 
or exchangeable for coupons mentioned herein.^ 

Si:cTioN 7. Free Goods ar.d Combination Sales. — No member of 
the Industry shall give bakery products free or compel a buyer to 
purchase one type of product in order to purchase or obtain another. 

Section 8. Tokens. — No member of the Industry shall sell or 



20 

give tokens redeemable or exchangeable for bakery products where 
the effect is to reduce the price of such products. 

Section 9. Com-mcrcial Bribei'^. — No member of the Industry 
shall give, permit to be given, or directly offer to give, anj^thing 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 emploj^ee, the principal of such agent or 
the represented party, witliout the Imowledge of such employer, 
principal or party. This Section shall not be construed to prohibit 
free and general distribution of articles commonly used for adver- 
tising except so far as such articles are actually used for commercial 
bribery as herein defined. 

Section 10. Loans to Customers. — No member of the Industry 
shall make loans to customers or prospective customers, either di- 
rectly or indirectly, or guarantee or endorse for the repayment of 
any loan, whore the intent and /or effect is to prevent or suppress 
competition. Nothing herein contained shall affect the extension of 
usual and ordinary commercial credits for bakery products sold and 
delivered. 

Section 11. Dividends to Cvsfomers. — No member of the Industry 
shall declare or pay any dividend or other share of his earnings in 
any form or manner whatsoever to any buyer of bakery products, 
directly or indirectly, which said dividend or share is based or de- 
pendent on an agreement or imderstanding for the purchase of bakery 
products by such buyer. This Section shall not prohibit the declara- 
tion or payment of dividends by any wholly-owned subsidiary to its 
parent corporation or by said parent corporation to said subsidiary, 
and it shall not prohibit patronage dividends by bona fide and legiti- 
mate cooperatives. 

Section 12. Fresh Returns and Stale Retuivis. — (a) The t«rm 
" fresh returns " as used herein means bakery products which have 
not been sold or delivered to any customer within the normal time 
for sale or delivery of the particular type of bakery product. The 
term " stale returns " as used herein means bakery products sold or 
placed on consignment and resold or returned by the consignee to 
the consignor. The term " returns " as used hereinafter means stale 
returns and/or fresh returns offered as stale bakery products. 

(b) No member of the Industry shall offer for sale, sell or deliver 
fresh returns as fresh bakery products below his open price for fresh 
bakery products. 

(c) No member of the Industry shall offer for sale, sell or deliver 
any returns for resale for human consumption. Returns sold in bulk 
and/or for resale not for human consumption shall be nuitilated. 
Methods of mutilation may be prescribed by the Code Authority, 
subject to the approval of the Administrator. 

(d) No wholesale bread baker, wholesale cake baker, or wholesale 
pie baker shall offer for sale, sell or deliver any returns except at 
the point of manufacture, and then only if such returns are plainly 
displayed as stale bakery products and otherwise distinguished from 
fresh baker-y products. 

(e) No retail baker, specialty baker, or chain store baker sliall 
offer for sale, sell or delivei- any returns except at the point of manu- 



' Sue i>aragrai)li 2 (2) of order aiiproving this Code. 



21 

facture and/or at the poiuts where originally offered for sale, and 
then only if such returns are plainly displayed as stale bakery prod- 
ucts, segregated and otherwise distinguished) from fresh bakery 
products. 

(f) No multiple unit retail baker shall offer for sale, sell or de- 
liver any returns except at the point of manufacture and/or at 
plaiiily identified special outlets devoted exclusively to the sale of 
such products. No such rjaker shall have more than one such outlet 
for every twenty-five (25) regular stores or major fraction thereof 
after the first twenty-five (^S), nor shall he have more than ten (10) 
outlets in all in any market area, including the point or points of 
manufacture. Such of said outlets as are established after the effec- 
tive date of this code shall not be so established as to compete un- 
fairly with the sale of fresh bakery products, and their establishment 
in this respect shall be regulated by tlie Code Authority, subject to 
the approval of the Administrator. Returns sold at sucli outlets 
shall be plainly displaj^ed as stale bakery products and otherwise 
distinguished from fresh bakery products. This paragraph shall 
not apply to chain store bakers, they being covered by paragraph 
(e) of this Section. 

(g) No house-to-house baker shall offer for sale, sell or deliver any 
returns except at the point of manufacture and/or at plainly identi- 
fied special outlets devoted exclusively to the sale of such products. 
No such baker shall have more than one (1) such outlet for every 
fifty (50) bakery routes or major fraction thereof after the first fifty 
(50), nor shall he have more than five (5) outlets in all in any market 
area, including the point or points of manufacture. Such of said 
outlets as are established after the effective date of this code shall not 
be so established as to compete unfairly with the sale of fresh bakery 
products, and their establishment in this respect shall be regulated by 
the Code Authority, subject to the approval of the Administrator. 
Keturns sold at sucn outlets shall be plainly displayed as stale bakery 
products and otherwise distinguished from fresh bakery products. 

Srctiox 13. Independent DktrUmtors. — No member of the Indus- 
try shall sell fresh bakery products to an independent distributor or 
other member of the Industry, if such distributor or other m.ember of 
the Industry is not complying Avith the provisions of this code. 
Every member so refusing to sell shall forthwith notify the Code 
Autliority of the refusal, and of all facts necessary to a complete 
understanding thereof. 

Section 14. Market Protection. — No member of the Industry shall 
sell his bakery products in any market area at prices lower than his 
open prices at the place of manufacture of said products plus a proper 
allowance for the cost of transportation; except, pursuant to the 
provisions of Article VII, Section 1, paragraph (c) hereof, to meet 
a competitor's price not in violation of the Code in said area. Pro- 
vided, however, that in cases of destructive price cutting in a high 
cost market area by invasions from a low cost market area, the Ad- 
ministrator may require that bakery products shipped from one 
market aiea into another market area shall be offered for sale at a 
price not lower than the lowest open price posted by any member of 
the Industry manufacturing bakery products in the latter area. 



22 

SEcnoN 15. Inaccurate Advertising. — No member of the Industry 
shall publish advertising (whether through printing, radio or other- 
wise) which refers inaccurately in any material particular to any 
member and/or division or branch of the Industry in relation to his 
or its business and/or to his or its goods, prices, values, credits, terms, 
policies or services. 

Section 16. Violence^ Intiinidation or Unlawful Coercion. — No 
member of the Industry shall (a) use violence against the person or 
property of, intimidate or unlawfully coerce, another member of the 
Industry, (b) threaten to use such violence, intimidation or unlawful 
coercion, (c) conspire with members of the Industry or others to use 
or threaten to use such violence, intimidation or unlawful coercion, 
or (d) combine or cooperate with any one who is using or threatening 
to use such violence, intimidation or unlawful coercion. 

Section 17. Governmental and Charitable Institutions. — Sections 
1, 2, 3, 7 and 12 of this Article shall not apply to the sale of bakery 
products to wholly or mainly tax-supported governmental and/or 
charitable institutions not for resale. 

Article VIII — Consignment Selling 

Section 1. Upon petition, notice, public hearing and affirmative 
vote of a tiuly representative group of members of the Industry in 
any State or regional area established hereunder, in the manner and 
under the regulations prescribed by the Code Authority and ap- 
proved by the Administrator, no member of the Industry shall there- 
after sell bakery products on consignment within such State or re- 
gional area. Such regulations shall also provide for the members 
right and extent of voting and for the adoption of a no-consignment 
provision by a truly representative group of the members of a par- 
ticular division of the Industry within such State or regional area 
without participation by members of other divisions therein not 
engaged in the sale of similar products. 

The term " consignment " shall mean the delivering, shipping, 
and/or placing of bakery products by a member of the Industry to 
or with a retailer, wholesaler, restaurant or hotel-keeper, or other 
similar person, pursuant to an agreement or understanding that any 
products which are not sold will be taken back or credit given there- 
for or price if paid returned in whole or in part, or other allowances 
made. 

Article IX — Miscellaneous Provisions 

Section 1. Modification. — (a) This Code and all the provisions 
thereof are expressly made subje-ct to the right of the President, in 
accordance with the provisions of Section 10 (b) of the Act, to can- 
cel or modify his approval of any provision of this Code or any 
condition imposed by him upon his approval tliereof. 

(b) Such of the provisions of this code as are not required ir. be 
included therein by the Act may, with the approval of the Presi- 
dent or his delegated authority, be modified or eliminated as changes 
in circumstances or experience may indicate. It is contemplated that 
from time to time supplementary provisions to this code will be 
submitted for the approval of the President to prevent unfair com- 



23 

petition and to effectuate the purposes and policies of Title I of the 
Act. 

Section 2. BfoJiopoUes. — The provisions of this code shall not be 
interpreted or applied so as to permit monopolies or monopolistic 
practices or to eliminate or oppress small enterprises or to discrimi- 
nate against them. 

Section 3. Subterfuge. — No member of the Industry shall use 
an}^ subterfuge to frustrate the spirit and intent of this code, which 
is, among other things, to increase employment by universal covenant, 
to i-emove obstructions to commerce, to shorten hours of work, and 
to raise wages to a living basis. 

Section 4. Effective Date. — This Code shall become effective on 
the third Monday after it shall have been approved by the President,] 

Approved Code No. 445. 
Registry No. 101-23. 

O 



Approved Code No. 446 
CODE OF FAIR COMPETITION 

FOR THE 

CANNING INDUSTRY 
As Approved en May 29, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Code of Faik Competition for the Canning 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 my approval of a Code 
of Fair Competition for the Canning Industry, and hearings hav- 
ing been held thereon and the Administrator having rendered hig 
report containing an analysis of said Code of Fair Competition 
together M^ith his recommendations and findings with respect thereto, 
and the Administrator having found that said Code of Fair Com- 
petition complies in all respects with the pertinent provisions of 
Title I of said Act and that the requirements of clauses (1) and (a) 
of subsection (a) of Section 3 of said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
the National Industrial Recovery Act, approved June 1(3, 1933, and 
otherwise, do adopt and approve the report, recommendations and 
findings of the Administrator and do order that the said Code of 
Fair Competition be and it is hereby approved, subject to the fol- 
lowing conditions : 

(1) That the Industry shall designate a committee whose mem- 
bersliip shall be subject to the approval of the Administrator and 
who shall cooperate with the Administrator in the fonnulation of 
standards of quality for products of the Industry and to make recom- 
mendations to the Administrator within ninety (90) days for the 
inclusion in said Code of provisions with respect to such standards 
and labelling requirements. 

(a) That the Industry shall report not later than December 1, 
1934 on the operation of the provisions of Articles III and IV with 
a view to improvmg the hour and wage provisions of this Code. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

AdmimMy^ator. 

The White House. 

May 29, 103 1^. 

63731° 544-155 34 (25) 



LETTER OF TRANSMITTAL 

The President, 

The 'White House. 
Sir: This is a report on the Code of Fair Competition for the 
Canning Industry, and on the Public Hearing held in Washington, 
D.C. on February 7th and 8th, 1934, in accordance with the provi- 
fiions of the National Industrial Recovery Act. 



On the basis of volume of annual business and number of em- 
ployees — the Canning Industry ranks as one of the major food 
industries. The value of the product of this Industry amounted 
to over $535,000,000 in 1929, while the cases packed exceeded 180,000,- 
000 in number for the same j^ear. By 1931 the volume in cases had 
receded to 150,132,000 and the value thereof to about $348,000,000. 
On a percentage basis the value declined about thirty-five per cent 
or twice the percentage decline in volume of cases. Both volume 
and value underwent a further decline in 1932, while in 1933 some 
small increase in both value and pack took place. 

According to the census of manufacturers for 1929, employees 
engaged in the Canning Industry averaged 98,866, with a maximum 
employment of 228,907 in September and a minimum employment 
of 39,703 in February. These figures are inconclusive as they 
include employees engaged in the Preserving Industry, which are 
not covered by this Code, and also excludes employees engaged in 
the fish canning branch of the Industry. In 1931 the average annual 
number of employees in the Canning and Presei*ving Industry was 
80,047, with, comparable peak and low periods similar to 1929. No 
dependable data is available for 1932 or 1933. 

The difficulties encountered in the codification of the Canning 
Industry were due, for the most part, to the complex nature oi 
the Industi*y itself. The great majority of Canning plants are 
located in small communities close to the source of raw materials, 
and for the most part, such Canneries operate on a few products 
only during the canning season and in many instances operate farms 
in conjunction with their canning operations. The bulk of such 
Canneries have the minimum of mechanical equipment, their oper- 
ating season is relative.ly sliort, are subject to wide variation in 
daily and total output due to weather conditions and crop hazards, 
and because of the perishability of a very large proportion of their 
raw material must, of necessity, work the hours necessary to the 
prompt handling thereof. 

On the other hand there are large corporation-owned Canneries 
operating in lai-go industrial centers. Such plants are highly mech- 
anized and, operating the year round on non-seasonal products, have 
been able to stabilize operations and employment. As circumstances 

(26) 



27 

permit or require, they also engage in the packing of seasonal 
products. 

In addition to the above competitive advantages or disadvantages 
due to varj'ing soil and climatic conditions, differences in labor 
efficiency, and wide geographical distribution of the units in the 
Industry, have generall}^ kept the Industry in a chaotic state, 
fostered extremely low wages and exhausting hours, and has brought 
financial embarrassment to a large number of the small Canners 
in particular and to the Industr}^ generally. 

A disturbing factor quite beyond the control of the Industry is 
the container situation. Two largo Can Companies dominate the 
suppl;/ of tin containers used by this Industry. In the majority of 
cost records which the Administration has had the privilege to 
examine, the price for the container that the Canner must pay has 
represented more than the combined cost of raw material and labor. 
In some cases the cost of the container has amounted to sixty per 
cent (00%) of the cost of producing the finished product. Particu- 
larly objectionable is the system of discounts employed by the Can 
Companies. These companies, by the use of quantity discounts and 
other terms of sale, create a substantial differential as between the 
small and large Canner for the principal outlay in their canning 
costs. Such discrimination constitutes a real danger for the future 
of the small Canner in the Industry. The pressure on the small 
Canner requiring the payment of high prices for the container lias 
contributed much to the small Canner's necessity of paying abnor- 
mally low wages. The capacity of the entire Canning Industry to 
pay Avages higher than the subnormal rates so characteristic of the 
past, and the ability of the small Canner to survive and prosper are 
ample considerations calling for further intensive study of thia 
situation. 

HOURS 

The Code standardizes the work week at thirty-six (3G) hours, and 
at a maximum eight (8) hours per day for all employees engaged 
in packing non-seasonal products, for the " off season " employees of 
Canneries ])acking seasonal perishable products, and for emploj'ees 
on seasonal operations wherever and whenever a labor supply of 
necessary qualifications is available. Prier to the P.R.A. Canneries 
operating on non-seasonal products had a work week of forty-eight 
to fifty-four hours. Canneries operating exclusively on seasonal and 
perishable products worked unrestricted hours, excepting Canneries 
in a few states having laws limiting hours. For these Canneries 
operations were usually planned on a fifty-four to sixty hour basis 
during the active Canning season. Estimated spread of employment 
in the non-seasonal end of the Industry should be about thirty per 
cent (30%), and, being year round vv'Ork, contributes more propor- 
tionately than the increase in seasonal employment. Control of 
hours necessary during the season for canning perishables is pro- 
vided in the Code by (1) instituting overtime pay for women work- 
ing in excess of ten (10) hours in any day or sixty (60) hours in 
any week, and (2) requiring Canners to submit reports establishing, 
to the satisfaction of the Code Authority, the necessity for having 
permitted male workers to exceed sixty (GO) hours per v\'eek. These 
provisions recognize the Industry's problem in handling perishables 



28 

so as to avoid loss to both canners and groovers of Canners' crops, and 
also the desirability of a check against the abuse of the privilege 
of unrestricted hours on perishables. The recognition of overtime 
for women represents a real forward step by the Industry. The 
Industry is unwilling to write overtime provisions for men into the 
Code due to the probable effect on farm labor, but has acknowlexlged 
the principle of overtime compensation for all workers in plants 
located in large population centers during seasonal operations. No 
overtime is permitted under any circumstances in any plant when 
engaged in non-seasonal operations. 

The usual exceptions, whole or partial, as to the hours provisions, 
are made in the case of managers, executives, salesmen, clerical, chem- 
ists, chauffeurs, watchmen and power house employees. The percent- 
age of employees engaged in these occupations is less than four per 
cent (4%) of all employees at peak period. Representative reporting 
firms in the Industry recorded a twenty-four per cent (24%) increase 
in employment in these classes of employees under the P.R.A. An 
even greater increavSe should result from this Code. 

The Canning Industry, like others, has been cursed with the evil 
of child labor. This Code prohibits any person under sixteen years 
of age from working, and in hazardous occupations all persons 
under eighteen years are barred. 



Under this Code hourly rates of pay for the mass of workers em- 
ployed by this Industry represent a substantial increase over those 
existing prior to and under the P.R.A. In many areas in the South 
six and seven cents an hour, and in the North ten to twelve and 
one-half cents an hour, was not at all unusual before the P.R.A. 
It is further evident that the rates of pav as fixed under the P.R.A. 
placed a disproportionate burden on the South in contrast with those 
in effect in the North. This Code attempts to correct this situation 
by materially increasing wage rates in the North. On non-seasonal 
work, the minimum rates for male workers according to geographical 
districts range from twenty-seven and one-half cents (27i/^^) to forty 
cents (409i) per hour, and for female employees from twenty-two 
and one-half cents (221/20) to thirty-two and one-half cents (32140) 
per hour. In metropolitan areas or cities or towns of less than 
400,000 population, the top range is thirty-five cents (350) per hour 
for males and thirty cents (30<;) per hour for females. For employees 
engaged in the handling or packing of seasonal and perishable prod- 
ucts the minimum hourly rate for female workers ranges from 
tAventy cents (20^) in the South to twenty-seven and one-half cents 
(271/.0) in the North, and for male employees from twenty-five 
cents (250) U) thirty-two and oue-half cents (321/20). 

Employees engag'ed in the handling or packing of seasonal prod- 
ucts may be paid on a piece-rate basis, providing that each one of 
fifty per cent (50%) of the employees so engaged on each operation 
shall earn at lea.st tlie applicable minimum liourly rate, and in the 
case of female employees, the ai)plicable hourly rate shall be two 
and one-half rents (21/20) liitrher than when compensated on a 
straight liourly basis. In addition an absolute minimum is estab- 
lished for even the most inefficient worker by the requirement that 



29 

no AYorker on piece-rates shall receive less than seven and one-half 
cents (Ti^^) beloTr the applicable minimum hourly rate. Much criti- 
cism, and justifiably so, was leveled at the P.R.A. piece-rate provi- 
sion requiring only that the total earnings of all employees on a 
piece-rate operation average the minimum hourh^ rate. The piece- 
rate provisions of this Code are even more stringent than applied 
by law in California, and give the maximum assurance that piece- 
rates will be fairly established, will reward the efficient worker, yet 
safeguard the interest of the inefficient worker. 

As a further protection to employees, as well as an aid in enforce- 
ment, the Code provides for the establishment of an independent 
audit of wages and hours. This system is subject to the approval 
of the Administrator, and must be adopted and placed in effect by 
districts when the Administrator shall so require. 

The wage provisions of this Code are of necessity somewhat com- 
plicated in structure, in order that the Industry's contribution to the 
Recovery Program be apportioned among the various groups in the 
Industry on a rational and equitable basis. In estimating the proba- 
ble effects of the provisions of this Code insofar as Avage rat^.s are 
concerned, it is conservatively assumed that approximately one- 
fourth of the output of the Industry is non-seasonal in character, 
and the balance seasonal; that over eighty-five per cent (857c) of 
the output of the Industry is produced in cities and towns under 
250,000 population; that of the non-seasonal products of the In- 
dustry, fully seventy-five per cent (75%) is produced in metropolitan 
areas of over 400,000 population, and that of the total output of the 
Industry eighty-nine per cent (89%) is produced in the Northern 
District, five and one-tenth percent (5xV%) in the Intermediate 
District, and five and nine-tenths per cent (01^^%) in the Southern 
District, and that as to distribution of employees of the Industry 
male workers predominate in non-seasonal production, while the 
reverse is true in seasonal production. 

Weighting the various wage rates in the code in accordance with 
the above inferences, the following percentage increase in Avages is 
indicative of what will be generally accomplished by this Code : — 

Average v,'ages, under the P.R.A. as modified for the Canning 
Industry, increased in the Northern District twenty one and three- 
tenths per cent (21^''^%) ; in the Intermediate District thirty -two 
and seven-tenths per cent (32xV%), and in the Southern District 
forty-one and seven-tenths per cent (41yV%)- The average rate 
under this Code, as compared with the average rate under the modi- 
fied P.R.A., will result in a further increase of twenty-one and seven- 
tenths per cent (21/o%) in the Northern District, eleven and one- 
tenth per cent (llyV%') in the Intermediate District, and eleven and 
one-tenth per cent (llii(j%) in the Southern District. 

The effect of the present Code on wage rates as related to the 
pre-P.R.A. rates will result in a forty-seven and six -tenths per cent 
(47x%%) increase in the Northern District, forty-seven and four- 
tenths per cent (47j%%) increase in the Intermediate District, and 
fifty-seven and four-tenths per cent (57 1*0%) increase in the South- 
em District. 

In support of the labor provisions of this Code as written for 
the 1934 season there are appended hereto letters of endorsement 
from the Secretary of Labor and from the Acting Chairman of tho 



30 

Labor Advisory Board, both of whom give unqualified approval 
to the immediate signing of this Code. 

ADMINISTRATION 

The Code provides for the setting up of a temporary Code Author- 
ity, such Code Authority to be elected by the Board of Directors 
of the National Canners Association, which Association is truly rep- 
resentative of the Industry and imposes no inequitable restrictions 
on membership. Within ninety days this temporary Code Authority 
must submit a more permanent plan of electing a Code Authority for 
the Industry, and an election must be held thereunder if the Admin- 
istrator so requires. 

UNFAIR TRADE PRACTICES PROVISION 

Because of the nature of the Canning Industry, distribution prac- 
tices have been somewhat different from that usually encountered in 
most food industries. Uniform prices have been the exception rather 
than the rule, as the majority of Canners sell their pack on the basis 
of individual negotiation. The trade practices which are prohibited 
or circumscribed in this Code are rather elementary in nature and 
generally adequate as an initial step in the rehabilitation of this 
Industry. Provision is also made for the Code Authority to present 
to the Administrator, as a modification of this Code, other fair trade 
practice provisions which experience may demonstrate as desirable. 
On the subject of diversion of brokerage, which is a major problem 
in all food manufacturing industries, it has been impossible to ob- 
tain the assent of the Industry to the provision requested. The Code 
Committee has agreed, however, to submit an amendment covering 
this subject after consultation with the Code Authorities of other 
food manufacturing industries, and it is not deemed necessary to 
delay approval of the Code on this account. 

CONSUMER GRADES AND QUALITY STANDARDS 

Considerable testimony was adduced at the Public Hearing rela- 
tive to consumer grades on all canned food products as a protx^ction 
to the consumer as well as the Canner. The establishment of these 
grades is recognized as desirable by the Canning Industry provided 
proper control aiul enforcement cAin be secured. The development of 
scientific quality standards, as a basis for such grades, has not 
progressed beyond the elenumtary stage. Quality standards, capable 
of enforcement under a code or a criminal statute requires a long 
period of research, and once developed, considerable educational 
work among consumei-s and Canners nuist be undertaken to make 
them useful as well as effective. The appropriate agency to carry 
on this research and develoj:)ment would seem to be the Pure Food 
and Drug Administration, under whose jurisdiction their enforce- 
ment would rest. The Administrator for Industrial Recovery there- 
fore commends for your thoughtful consideration the need to urge 
upon Congress the necessity of ample a];propriations to carry out 
such a program and, at the appropriate time, the necessary legislation 



31 

to make such quality standards and consumer grades effectively 
enforced. 

In the meantime constructive work can be accomplished by a 
study of the grades and standards problem, to be conducted by a 
committee appointed by the industry subject to the approval of and 
cooperating with the Administrator, and to report within ninety 
days after the effective date of this Code. It is, therefore, recom- 
mended that 3'our approval of this Code be conditioned upon the 
selection of such a committee, and the Executive order is so drawn. 

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 unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

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

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

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

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

For the above reasons this Code is hereby recommended for 
a,pproval. 

Respectfully, 

Hugh S. Johnson, 

A dminis trator. 

May 29, 1934. 



CODE OF FAIK COMPETITION FOR THE CANNING 
INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, the following provisions are established as a Code of 
Fair Competition for the Canning Industry, and shall be the stand- 
ards of fair comjjetition for such industry and shall be binding 
upon every member thereof. 

Article II — Definitions 

Section 1. As used in this Code : 

(a) The terms "President", "Administrator" and "Act" mean 
respectively tlie President of the United States, the Administrator 
for Industrial Recovery, and Title I of the National Industrial 
Recovery Act, approved June 16, 1933. 

(b) The term "Code Authority" means the Code Authority 
provided for in Article VI of this Code. 

(c) The term "industry" means the packing and the sale by the 
packer thereof on a commercial scale of products of the industry ; 
the cleaning and preparation of seed carried on incidental to packing 
operations; and such related branches or subdivisions as may from 
time to time be included under the provisions of this Code by the 
President after such notice and hearing as he may prescribe. 

(d) The term " product of the industry " means and includes, 
without limitation, ail foods packed for human consumption in 
hermetically sealed containers thereafter sterilized by heat, and such 
food products otherwise packed as the Administrator may include 
within this Code from time to time after such notice and hearing 
as he may specify; provided that milk and meat, however packed, 
and all other foods packed in hermetically sealed containers, there- 
after sterilized by heat, which may be su.bject to and not exempted 
from xiny other approved code of fair competition, are excluded. 

(e) The term " member of the industry " includes any individual, 
partnej-ship, association, corporation, or other form of enterprise 
engaged in tlie imlustry, either as an employer or on his or its own 
behalf.^ ^ 

(f ) The term " export sales " means and includes sales of products 
of the industry actually shii)ped and/or delivered to purchasers out- 
side of the several States, the District of Cohimbia, Puerto Rico, 
and th<; territories of Hawaii and Alaska. 

(g) The term " employee " means any person engaged in the 
industry in any capacity and receiving com])ensation for his service 
irrespective of the nature or the method of payment of such com- 
pensation, except a member oF tlie iii(histry. 

(32) 



33 

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

(i) The term "agricultural employee" means any individual en- 
gaged in growing, preparing, and/or delivering in fresh form prod- 
ucts of the soil and/or livestock to the point where delivery by the 
grower to market or for processing customarily takes place. 

(]■) The term "watchman" means any employee whose primary 
function is guarding the premises and property of any establishment 
of a member of the industry. 

(k) The term "outside salesman" means any employee who is 
engaged at least 60 pev cent of his working hours in selling outside 
the establishment of a member of the industry and Avho does not 
regularly deliver merchandise. 

(1) The term "perishable product" means and includes all fruits, 
vegetables, fish and shell fish which are required in a fresh condi- 
tion for packing and which after reaching proper canning maturity 
or being harvested or taken v\^ould deteriorate in quality, grade or 
suitability for packing in such required fresh condition within 48 
hours. 

(m) The term "seasonal product" means and includes all fruits 
and vegetables which are required in a fresh condition for packing 
and which after reaching proper canning maturity or being liar- 
vested or taken would not deteriorate in quality, grade, or suitability 
for packing in such required fresh condition within 48 hours. 

(n) The term "non-seasonal product" means and includes such 
products as are used for canned foods, which may be stored without 
loss or deterioration, and which are not perishable products or 
seasonal products. 

(o) The term " buyer " means any commercial buyer, as distin- 
guished from an ultimate consumer buyer. 

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

Article III ^ — Hours 

Sectiox 1. No employee shall be permitted to work in excess of 
thirty-six (36) hours in any week or eight (8) hours in any day 
with the following exceptions: 

(a) Executive, managerial, and supervisory employees regularly 
receiving not less than : 

$35.00 per week in cities of over 100,000 population and the im- 
mediate trade areas thereof ; or 

$30.00 per week in cities of 25,000 to 100,000 population and the 
immediate trade areas thereof; or 

$25.00 per week in cities and towns of less than 25.000 population. 

(b) Outside salesmen. 

(c) Clerical, accounting and other office employees; provided that 
they shall not be permitted to work more than forty (40) hours in 
any one week plus an additional period or periods not to exceed (40) 
forty hours in the aggregate in any twelve month period for financial 
closing or inventory taking purposes. 

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



34 

(d) Chemists, bacteriologists, and other technical employees en- 
gaged in their professions, provided that each member of tlie indus- 
try shall file Avith the Code Authority quarterly a statement of the 
number of teclmical employees so exempted, together with descrip- 
tions of their occupations and rates of pay. 

(e) Chauffeurs, deliverymen, and immediate assistants; provided 
they shall not be permitted to work more than forty-eight (48) 
hours in any week. 

(f) Warehouse employees; provided they shall not be permitted 
to work more than forty-four (44) hours in any week. 

(g) Repair and maintenance crews; provided they shall not be 
permitted to v/ork more than forty (40) hours in any week. 

(h) Watchmen; provided they shall not be permitted to work 
more than fifty-six (56) hours in any week. 

(i) Power plant employees; provided they shall not be permitted 
to work more than forty-eight (48) hours in any week, nor more 
than nine (9) hours in any day. 

(j) Employees necessary to the handling and/or packing of per- 
ishable products during the packing season for such products, when 
the physical conditions of the perishable product, crop sequence, 
temperature, humidity, climatic or other circumstances beyond the 
control of the employer would result in loss or deterioration, or loss 
to the producers of raw commodities, may be permitted to work 
under the following conditions and for the following hours : 

1. When additional male workers of the necessary qualifications 
are not available, male employees may be permitted to work for 
the hours necessary to handle such perishable products; provided 
that in metropolitan areas of 400,000 population or more, male em- 
ployees may not be permitted to worlv in (!xcess of sixty (60) hours 
per week except under conditions and circumstances and such regu- 
lations as shall be formulated by the Code Authority subject to 
approval of the Administrator; and provided further that male 
employees in metropolitan areas or cities and towns of less than 
400,000 population may not be permitted to work in excess of sixty 
(60) hours per week unless the emploj'er of such employees shall 
file promptly with the Code Authority a full and complete state- 
ment of the facts which necessitated the working of said employees 
for such excess hours. 

2. When additional female workers of the necessary qualifications 
are not available, or, if available, all of the facilities of a particular 
plant are in use, female employees may be permitted to work the 
hours necessary to handle the crop, provided that such female em- 
ployees are compensated for all hours worked in excess of ten (10) 
hours in any day at not less than the overtime rates as provided for in 
Section 5 of Article IV of this Code. 

Skchon 2. No employee, except those enumerated in subsections 
(a), (d), (h), and (j) of Section 1 of this Article, shall be per- 
mitted to work more than six (6) days in any seven (7) day period. 



35 
Article IV '^ — Wages 

Section 1. No clerical, accounting, or other office employee shall 
be paid less than at the rate of : 

$16.00 per week in any city of over 500,000 population and tlio immediate 
trade area thereof; or 

$15.00 per week iu any city between 250,000 and 500,000 population and the 
immediate trade area thereof; or 

$14.00 per week in any city or town of less than 250,000 population ; 

except that office boys and messengers may be employed at not less 
than a rate of two dollars ($2.00) below the above minima, provided 
that not more than ten (10) per cent of the total number of office 
employees in each establishment of a member of the industry shall 
be so compensated and classified, but any establishment in the in- 
dustry may employ at least one office boy or messenger. 

Section 2. No employee engaged in handling non-seasonal prod- 
ucts shall be paid less than at the following rates, whether employed 
on an hourly, daily, weekly, monthly, seasonal, yearly, piece-rate 
or other basis ; 



Metropolitan Areas over 400,000 in 
Population 



Metropolitan Area.s or cities 
or towns under 400,000 
Population 



Northern District 

Intermediate District 
Southern District 



40 cents per hour for males, 321.2 cents 
per hour for females. 



32 cents per hour for males, 26 cents per 
hour for females. 



ZJVi cents per hour for males, 22U cents 
per hour for ' 



35 cents per hour for males, 
30 cents per hour for fe- 
males. 

30 cents per hour for males, 
25 cents per hour for fe- 
males. 

2'^i cents per hour for males, 
221.5 cents per hour for fe- 
males. 



Puerto Kico-Hawaii District: Pending modification, after such 
notice and hearing as the Administrator may require, the minimum 
rate paid for the same class of work as on July 15, 1929. 

Section 3. No other emplo3'ee shall be paid less than at the fol- 
lowing rates, whether employed on an hourly, daily, weelily, monthly, 
seasonal or yearly basis : 

Northern District: 32V2 cents per hour for males, 27^2 cents per hour 

for females. 
Intermediate District : 27% cents per hour for males, 22'/. cents per hour 

for females. 
Southern District: 25 cents i)er hour for male.<. 20 cents per hour for 

females. 

Puerto Rico-Hawaii District: Pending modification, after such 
notice and hearing as the Administrator may require, the minimum 
rate paid for the same class of work as on July 15, 1929. 

Section 4. Members of the industry may pay wages on a piece-rate 
basis in lieu of the time rate wage scale specified in Section 3 of this 
Article, provided that 

(a) The piece rates for each one of fifty (50) per cent of the 
employees employed on each operation (except permit workers 
classified under Section G of this Article) shall yield to such em- 
ployees, computed over the employer's customary payroll period (but 

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



36 

not longer than semi-monthly), at least the applicable minimum rate 
per hour specified in Section 3 of this Article as modified by Sub- 
section (c) of this Section; and if, for any such period, the estab- 
lished piece-rates for any such operation do not so yield, then the 
percentage of increase sufficient to so yield shall be added to the 
earnings of all employees, including permit workers, on such 
operation for such payroll period. 

(b) Any piece-work employee (except permit workers classified 
under Section 6 of this Article) whose earnings for such payroll 
period, including any adjustment as provided for in sub-section (a) 
of this Section, has not averaged within seven and one-half (71/2 ) 
cents per hour of the applical)le minimum hourly rate, shall have 
added to his earnings for such payroll period an amount sufficient 
to yield to such employee not less than eeven and one-half (Ti/o) 
cents per hour below the applicable minimum hourly rate. 

(c) For the purposes of this Section, the applicable minimum 
rates per hour for female employees shall be not less than two and 
one-half (21/2) cents per hour higher than the respective minimum 
rates for such employees as specified in Section 3 of this Article. 

Section 5. Female employees permitted to work overtime, as pro- 
vided for in sub-paragraph 2, sub-section (j). Section 1 of Article 
III, shall be compensated for such overtime at not less than at the 
following rates : 

For all hours worked in excess of ten (10) hours and up to twelve 
(12) hours in any one day — time and one-half for such excess hours. 

For all hours worked in excess of twelve (12) hours in any one 
day — double time for such excess hours. 

If employed for more than six (6) days out of seven (7) days — 
time and one-fourth for the first eight (8) hours, time and one-half 
for all hours in excess of eight (8) hours and up to twelve (12) 
hours, and double time for all hours over twelve (12) hours worked 
on such seventh day. 

Section 6. A person whose earning capacity is limited because of 
age, pliysical, or mental handicap, or other infirmity, nuiy be em- 
ployed on light Avork at a wage below the minimum established by 
this Code, if the emploj^er obtains from the authority designated by 
the United States Department of Labor a certificate authorizing 
such person's employment at such Avages and for such hours as shall 
be stated in the certificate. Each employer shall file monthly with 
the Code Authority a list of all such persons employed by him, show- 
ing the wages paid to, and the maximum hours of work for each such 
employee. 

Section 7. 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 as of said date. In no case 
shall hourly wage rates be reduced. 

AirncLE V — Geneuai> Lahok Provisions 

Section 1. Mandatory Provisions. — (a) Employees shall have the. 
right to organize and bargain collectively tlirough representatives of 
their own choosing, and shall be free from the interference, restraint, 
or coercion of employers of labor, or their agents, in the designation 



37 

of such representatives or in self -organization or in other concerted 
activities for the i)urpose 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 maximimi hours of labor, 
minimum rates of pay, and other conditions of employment, ap- 
proved or prescribed by the President. 

Section 2. Application of Code Protnslons. — The provisions of 
this Code shall not apply to agricultural employees. No provision 
in this Code shall supersede any law which imposes on employers 
more stringent requirements as to age of employees, wages, hours of 
work, or as to safety, health, sanitary or general Avorking conditions, 
or insurance, or fire protection, than are imposed inider this Code. 

Section 3. EnipJoymeid of Minors.— -'So person under 16 3'ears of 
age shall be employed by any member of the industry. No person 
under 18 years of age shall be permitted to work at operations or 
occupations deemed to be detrimental to health or hazardous in 
nature. The Code Authority shall within sixtj'- days submit a list 
of such occupations to the Administrator for approval. In any 
jurisdiction an emploj^er shall be deemed to have complied with this 
provision as to age if he shall have on file a certificate or permit show- 
ing tliat the employee is of the required age. 

SEcrriON 4. Geographical Wage Distncfs. — The following wage 
districts are hereby established : 

(a) Northern District. — The states of Maine, Vermont, New 
Hampshire, Massachusetts, Connecticut, New York, Pennsylvania 
(except five counties of York, Lancaster, Adams, Chester and Frank- 
lin), Ohio, Indiana, Illinois, Wisconsin, Michigan, Iowa, Minnesota, 
Kansas (except Cowley and Montgomery Counties), Colorado, Utah, 
Nevada, California, Oregon, Washington, Montana, Idaho, Wyo- 
ming, North Dakota, South Dakota, Nebraska, Rhode Island, New 
Jersey, and the Territory of Alaska. 

(b) Intermediate District.— The states of JMaryland, Delaware, 
West Virginia, the five counties in PennsylvaniJi of York, Lancaster, 
Adams, Chester and Franklin, the District of Columbia, and the 
four counties in Virginia of Frederick, Clark, Shenandoah and 
Warren. 

(c) Southern District. — The states of Virginia (except the coun- 
ties of Frederick, Clark. Shenandoah and W^arren), Kentucky, Mis- 
souri, Oklahoma, Texas, Arizona, New Mexico, Louisiana, Arkansas, 
Mississippi, Alabama, Georgia, Florida, South Carolina, North 
Carolina, Tennessee, the tv>^o counties in Kansas of Cowley and 
Montgomery, insular possessions and other places under the juris- 
diction of the United States not otherwise specifically provided for 
lierein. 

(d) Puerto Rico-IIairaiian District. — Territories of Puerto Rico 
and Hawaii. 

Section 5. Employment liy Several Employers. — No member of 
the industry 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 by this Code. 



38 

Section 6. Audit System.^{?i) Within thirty (30) days aft«r the 
effective date of this Code a system of independent payroll audit 
for both time and piece workers shall be developed by the Code 
Autliority, This system shall be subject to approval b}^ the Admin- 
istrator, and put into eifect in each area as soon thereafter as the 
Administrator may require. The Code Authority, subject to review 
by the Administrator, shall prorate the cost of such audit by dis- 
tricts to the members of the industry in such district. 

(b) Members of the industry shall furnish the Administrator or 
his duly accredited representative such labor payroll statistics on 
time and piece workers as he may deem necessary for the purpose of 
determinino; that the labor provisions of this Code are being com- 
jilied with in every respect. 

Section. 7. Redassificatio'n. — No employer shall reclassify em- 
ployees, duties, occupations performed or methods of compensation, 
or engage in any subterfuge for the purpose of defeating the pur- 
jDOses or provisions of the Act or of this Code. 

Section 8. Posting. — Within 10 days after the effective date of 
this Code each employer shall post and maintain in a conspicuous 
place, accessible to its employees, copies of the hour, Avage, and gen- 
eral labor provisions of this Code, and each member of the industry 
shall comply with all rules and regulations as to posting which may 
be formulated from time to time by the Administrator. 

Section 9. Deductions. — Wages of employees shall be exempt from 
any fines; and from charges or deductions except charges or deduc- 
tions for employees' voluntary contributions for pension, insurance 
or benefit funds or charges or deductions recjuired by mandatory 
provisions of law; and no employer shall make a practice of with- 
holding wages except upon service of legal process lawfully requir- 
ing such withholding. Deductions for other purposes not heretofore 
stated may be made only when so authorized by the emploj^ee in 
writing. 

Section 10. The provisions of this Code governing hours of labor, 
wages and other conditions of employment shall be applied by 
employers to all employees, irrespective of any relationship to the 
employer. 

Section 11. Female employees performinf^ substantially the same 
work as male employees shall be paid at the same rate of pay as 
male employees; provided that occasional temporary substitution 
of men on work customarily done by females, or substitution of 
males for females during hours when female labor is prohibited by 
apj:>licab]e law, shall not require that females be paid the same rate 
as tin; males so substituted. 

Se(;iton 12. P^very 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 ('ode Authority to the Administrator within six months after 
the effective (hite of the Code. 



89 

Article YT — Organization, Powers and Duties of the Code 
Authority ^ ^ 

Section 1. Organization and Constitution. — (a) There shall forth- 
with be constituted a Code Authority of fifteen members truly repre- 
sentative of the industry, selected from the members of tlie industry 
by the National Canners Association in such manner as its Board 
of Directors shall prescribe, on the basis of the volume of business 
and such other factors as may be deemed equitable, of which number 
at least two shall be selected from canners whose output the preced- 
ing year was less than 100,000 cases of No. 2 cans of products of the 
industry or their equivalent, and of which number at least three 
shall not be members of the National Canners Association and shall 
not be identified with, nor in an}- manner affiliated with, members of 
the mdustry that are members of the National Canners Association. 

(b) Each member of the Code Authority shall serve for one year, 
unless within such time he submits his resignation in writing to tlie 
Code Authority, or unless an election pursuant to the provisions of 
sub-section (d) of this section shall be held. In case of vacancy by 
death or resignation the vacancy shall be iiiled in the same manner 
as original members were selected. 

(c) In addition to membership of the Code Authority as above 
provided, there may be one to three members, without vote, and 
without expense to the industry, to be appointed by the Adminis- 
trator, to serve for such terms as he shall designate. 

(d) Within ninety (90) days after the effectiA'e date of this Code, 
the Code Authority shall submit for the approval of the Adminis- 
trator a plan for elections of the Code Authority, and the first elec- 
tion shall be held thereunder at the earliest practicable date follow- 
ing approval by the Administrator. 

Section 2. Mc7nhe7'sh'ip Restrictions Prohihited. — Eacli trade or 
industrial association directly or indirectly participating iji tlie 
selection or activities of the Code Authority i^luiil (1) impose no 
inequitable restrictions on membership, and (2) submit to the Ad- 
ministrator true copies of its articles of association, by-laws, regu- 
lations, and any amendments when made thereto, togeiher 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. Modification of Code Authority. — In order that the 
Code Authority shall at all times be truly representative of the 
industry and in other respects comph' 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 i-s 
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. 

Secti.in 4. Egepense. — 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 



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



40 

by assenting to 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 5. Lirnitation of Liability. — Nothing contained in this 
Code shall constitute the members of the Code Authority partners 
for an}' purpose. Nor shall any member of the Code Authority be 
liable in any manner to anyone for any act of any other member, 
officer, agent or employee of the Code Authority. Nor shall any 
member of the Code Authority, exercising reasonable diligence in 
the conduct of his duties hereunder, be liable to anyone for any 
action or omission to act under this Code, except for his own Vv^illf ul 
misfeasance or non-feasance. 

Section 6. Powers and Duties. — The Code Authority shall have 
the following further pov»'ers and duties, the exercise of which shall 
be reported to the Administrator : 

(a) To insure the execution of the provisions of this Code and, 
subject to such rules and regulations as may be established by the 
Administrator, to provide for the compliance of the industry with 
the provisions of the Act. 

(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 (including reports of packs and stocks on hand, which 
ma}' be reciuired to be submitted under oath to some person not 
a member of the industry, to be selected by the Code Authority) 
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 such Federal 
and State agencies as he may designate; provided that nothing in 
this Code shall relieve any member of the industry of any existijig 
obligations to furnish reports to any Government agency. No indi- 
vidual report shall be disclosed to any other member of the industry 
or any other party, except to such other governmental agenc}^ as 
may be direr ted by the Administrator. 

(d) To use, upon the formal request of representative groups of 
industry members, duly elected committees from representative in- 
terested state and geographical associations and/or commodity 
organizations for the carrying out of any of its activities under 
this Code, provided that nothing herein shall relieve the Code Au- 
thority of its duties, powers, or responsibilities under this Code, and 
that such trade associations, organizations, and agencies shall at all 
times be subject to and comply with the provisions hereof. 

(e) To ele(;t a representative to serve on any conference or advisory 
committee which may Ixi established by the Administrator for the 
entire grocery manufacturing industry, and to consider recommen- 
dations formulated by such committee for the modification of this 
Code. 

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



41 

(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 otlier industries and to recommend to the 
Administrator measures for industrial planning, including stabili- 
zation of employment. Nothing in the foregoing shall limit the 
right of any member of the industry directly to recommend any 
addition to or modification of this Code. 

(i) To investigat-e, subject to such rules and regulations as may 
be established by the Administrator, alleged violations of this Code, 
and to present to the Administrator reports of its investigations of 
such alleged violations. Nothing in the foregoing shall limit the 
right of any member of the industry directly to appeal to the 
Administrator from any action of the Code Authorit3\ 

(j) To appoint sucli executives, to engage such assistance, and 
to organize such committees as may be appropriate to administer 
this Code, The Administrator may appoint a representative to 
attend the meetings of such commiittees without vote and Avithout 
expense to the industry. 

(k) To investigate and inform the President as to the effect of 
importation of competitive product-s into the United States. 

(1) The Code Authority within thirty (30) days after the effec- 
tive date of this Code shall formulate, subject to the approval of 
the Administrator, a fletailed list of all products of the industry 
which under reasonable interpretation qualify as perishable prod- 
ucts, seasonal products, and non-seasonal products. 

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

(n) To formulate a system of accounting. Upon approval by 
the Administrator and after such period for readjitstment as he 
may prescribe, each member of the industry shall use a system of 
accounting which conforms to the principles of and furnishes 
information comparable to that provided by the accounting system 
formtilated by the Code Authont3\ 

Section 7. Coordination icith Other Codes. — The Code Authority 
shall appoint a Trade Practice Committee, the duty of which shall 
be to meet and confer with like committees to be appointed by Code 
Autliorities of codes of related food-mantifacturing industries, with 
a view to formtdating fair trade practices to govern the relationship 
between production and distribtition, to the end that such fair trade 
practices may be proposed to the Administrator as amendments to 
this Code and to other codes of such related industries. 

Section 8. Revicu\ — 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 Adminis- 
trator may require that such action be suspended to afford an oppor- 
tunity for investigation of the merits of such action or further con- 
sideration 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 



42 

him of intention to proceed with such action in its original or 
modified form. 

Article VII — Unfair Trade Practices 

Section 1. Ope7i Prices. — No member of the industry shall sell 
any product of the industry to a buj^er except upon the basis of an 
open price, which is strictly adhered to while effective. The term 
" open price " as used in this Section means a price which is published 
for or available to all members of the industry and all actual or 
solicited buyers of the same class located in the same competitive 
market, and which declares all such member's prevailing terms of sale 
for his products, including all discounts, allowances, terms and 
conditions of sale. 

Section 2. Piice Discrimination. — (a) No member of the industry 
shall discriminate in price between buyers. The term " discriminate 
in price " as used in this Section, means directly or indirectly charg- 
ing a different price to buyers of the same quantity, located in the 
same competitive market, and members of the same buyer class. 

(b) No member of the industry shall knowingly permit his agent 
or sales representative to make a price concession prohibited by this 
Section, whether by gift or allowance of any part of his compensation, 
or by any other means whatsoever. 

(c) Sales of products of the industry by one member of the 
industry to another for the purpose of remanufacture shall be upon 
such terms as may be agreed to by such members, without compulsory 
adherence to the provisions of Section 1 of this Article. 

(d) This Article shall not be construed to prohibit any member of 
the industry from making any price which may seem to him advis- 
able in sales for charitable or relief purposes. 

(e) As soon as practicable and not later than ninety (90) days 
after the effective date of this Code, subject to the approval of the 
Administrator the Code Authority shall prescribe general rules and 
regulations for the classification of buyers designed to prevent classi- 
fication without economic justification and to permit a classification 
upon the basis of service required from the seller and/or rendered 
by iha buyer. 

Section 3. False Billing. — No member of the industry shall know- 
ingly withhold from or insert in any quotation or invoice any state- 
ment that makes it inaccurate in any material particular. 

Section 4. Quantity Price. — No member of the industry shall offer 
or make a quantity price unless it is a genuine quantity price, and 
unless it is shown in the open price and is equally available to all 
buyers of the same quantity class. The term " genuine quantity 
price " as used in this Section means a price differential which is 
based upon and reasonably measured by a saving in cost to the 
seller. 

Section 5. Unearned Discount for Cash. — No member of the in- 
dustry shall allow a discount for cash unless such cash discount terms 
are disclosed in the " open price ", and unless such discount is earned 
by payment in accordance with such cash discount terms. 

Section 6. Fraudulent Prizes or Premiums. — No member of the 
industry shall offer or give any prize or premium or other gift in 
pursuance of a plan involving lottery or fraud or deception. 



43 

Section- 7. Unfair Substitution. — No member of the industry- 
shall substitute without due notice and consent of a buyer another 
product of the industry for that ordered from him. 

Section 8. C o-nvmercial Briheicy. — No member of the industry shall 
give, permit to be given, or directly offer to give, anything of value 
for the purpose of influencing or rewarding the action of any em- 
ployee, agent, or representative of another in relation to the business 
of the employer of such employee, the principal of such agent, or 
the represented party, without the knowledge of such employer, 
principal, or party. This provision shall not be construed to pro- 
hibit free and general distribution of articles commonly used for ad- 
vertising except so far as such articles are actually used for com- 
mercial bribery as hereinabove defined. 

Section 9. False Lahel or Advertiscmeyit or Container. — No mem- 
ber of the industry (a) shall sell a product of the industry falsely 
or deceptively labeled or marked; or (b) falsely or deceptively ad- 
vertise a product; or (c) use a deceptive container or give short 
weight or measure or count. 

Section 10. Unfair Interference with Competitor''s Business.—^ 
No member of the industry shall unfairly interfere with a competi- 
tor's business, by uttering false statements about his business or by 
unfairly disparaging his business or products or by inducing a breach 
of his contracts. 

Article VIII — Export Sales 

Section 1. No provision of this Code relating to prices or terms 
of selling, shipping or marketing, shall apply to export sales. 

Article IX — Modifications 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provision 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 bo modified on the basis of experience or changes in circum- 
stances, such modifications to be based upon application by the Code 
Authority to the Administrator and such notice and hearing as he 
shall specify, and to become effective on approval of the President. 

Section 3. Within a period of thirty days after the effective date 
of this Code, any division of the industry engaged in the packing 
of fish and shell fish, included wi^in the industry as defined in 
Article II hereof, may petition t^e Administrator for exclusion 
from the terms of this Code, and upon approval of the said petition 
by the President, said division shall cease to be bound by the terms 
of this Code. 

Article X — Monopolies, Etc. 

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



44 

Article XI — EFrECTi\T2 Date 

This Code shall become effective on the first Monday following 
the tenth day after approval by the President. 

Approved CJode No. 446. 
Ee^stry No. 105-03. 

o 



Approved Code No. 447 
CODE OF FAIR COMPETITION 

FOR THE 

PRIVATE HOME STUDY SCHOOL INDUSTRY 

As Approved on May 31, 1934 



ORDER 



Appko\t:ng Code of Fair Competition- for the Private Home 
Study School 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 Private Home Study School Industry, and 
Hearings having been duly held thereon, and the annexed report 
of said Code, containing findings with respect thereto, having been 
made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to 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 purpose 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^ninistrator for Industrial Recovery. 

Approval recommended : 
H. O. King, 

Division Administrator. 

Washington, D.C, 

May 31, 19 3 1^. 

64004° 657-2 34 (45) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir : This is a report on the hearing on the Code of Eair Compe- 
tition for tlie Private Home Study School Industry, held in the 
Department of Commerce Building on March 28, 1934. The Code 
which is attached was presented by duly qualified and authorized 
representatives of the Industry, complying with statutory require- 
ments and claiming to represent seventy (TO) per cent by volume 
of the Industry. 

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

THE INDUSTRY 

The Industry comprises about 196 schools having a capital in- 
vestment of approximately $5,000,000 and instructing 500,000 stu- 
dents annually. In 1929 there were 437 schools. Sales volume has 
fallen from $32,000,000 in 1929 to $15,750,000 in 1933, and the num- 
ber of employees in the Industry has dropped from 4,800 in 1929 to 
about 2,400 at present. A large per cent of the drop in sales volume 
and employment can be laid to the fact that 241 firms have gone out 
of business since 1929. 

There are two main divisions of the Industry — (1) those schools 
which furnish merely a reading course in the subjects covered, and 
(2) those schools which correct examination papers submitted by 
students in conjunction with the courses of study. 

PROVISIONS OF THE CODE 

The Code provides a basic work week of 40 hours. The only avail- 
able statistics are meager and show that only seven per cent of the 
employees in the Industiy are working more than 40 hours per week, 
and it would appear that very little reemployment will be accom- 
plished by this Code. However, these statistics were compiled for 
the month of August, 1933, when many employers had already re- 
duced the work week of their employees to 40 hours under the Presi- 
dent's Recmi)loymont Agreement. 

The Industry strenuously opposed the adoption of a 3G hour week, 
and contended that more complete statistics would show that the 40 
hour week will cause considerable reemployment. Therefore, the 
Code provides that the Code Autliority shall collect such statistical 
information as may be required by the Administrator and that on 
the basis of such information the Administrator may revise the pro- 
visfons of the Code relating to hours of labor. 

(46) 



47 

A basic minimum wage rate of fourteen dollars ($14.00) per 
week is provided. Since approximately thirty per cent of the mem- 
bers of the Industry have been paying a minimum rate below $14.00 
per week, the Code should provide some increase in payrolls. 

Because this Industry has a direct effect upon the consumer in that 
its courses of study appeal to the desire of the normal person to 
improve his economic status in life, the trade practice provisions of 
the Code are of extreme importance. Any practices in the Industry 
which tend to lower its ethical and educational plane can be of great 
harm. It is felt that this Code will do much to raise the standards of 
the Industry. 

The Code includes a broad trade practice rule prohibiting all false 
representation; and in addition such types of misrepresentation as 
have specifically harrassed the Industry in the past are eliminated. 
In order to make this rule equally effective against schools employ- 
ing salesmen and schools which contact their prospects solely by mail, 
a clause is provided which raises a legal presumption that acts done 
in violation of the Code by salesmen are done within the scope of 
the authority of such salesmen and done with the knowledge and 
consent of their employers. 

At the hearing much controversial evidence was introduced on the 
subject of the giving of premiums, money-back agreements, and 
guarantees of jobs to students. When abused, these practices tend 
to have a bad effect on the prestige of the Industry, yet legitimate 
use of them is made by many schools. The Code Authority is in- 
structed to study these questions and present to the Administrator its 
recommendations for methods t« control the abuses without thereby 
causing undue hardship. 

The Code Authority is instructed to make a study with a view to 
setting up basic educational standards to be proposed as amend- 
ments to the Code. 



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

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial 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 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- 
ino; unfair competitive practice, by promoting the fullest possible 
utilization of the present production capacity of Industries, by avoid- 
ing undue restriction of production (except as may be temporarily 
required), by increasing the consumption of industrial and agricul- 
tural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 



48 

(b) Said industry normally employs not more than 60,000 em- 
ployees; and is not classified by me as a major industry. 

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

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

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

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

For these reasons, this Code of Fair Competition for the Private 
Home Study School Industry has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
May 31, 1934. 



CODE OF FAIR COMPETITION FOR THE PRIVATE HOME 
STUDY SCHOOL INDUSTRY 

Article I — Purposes 

To effect the policies of Title I of the National Industrial Recovery 
Act, the following provisions are established as a Code of Fair 
Competition for the Private Home Study School 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. The term ^^ Private Home Study School Industry'''' 
as used herein shall mean the Industry each member of which is 
engaged in (1) the publication and/or sale of pamphlets, books, or 
other educational textual materials advertised or offered to the gen- 
eral public as courses of study and primarily intended to be sold 
directly to the general public and not to wholesalers, retailers, or 
other distributors; and/or (2) the publishing ancl/or sale of 
pamphlets, books, or other educational textual materials advertised 
or offered to the general public as courses of study and including 
instructional services rendered to the purchaser, such as correctin<^ 
and grading written reactions in the form of discussions, solutions of 
problems, or drawings, submitted by said purchaser for the purpose 
of testing his mastery of said courses of study, where the contact 
between the member of the Industry and the purchaser is primarily 
maintained by mail or other method of distant communication ; and 
shall mean such related branches and subdivisions of such Industry 
as may from time to time be included under the provisions of this 
Code by the President after such notice and hearing as he may 
prescribe. 

Section 2. The term " member of the Industry " as used herein 
includes, but without limitation, any indi\adual, pnrtnership, asso- 
ciation, corporation 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 shall mean 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 such employee is compensated or employed. 

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. The term " Executive " as used herein shall mean an 
employee responsible for the management of a business or a recog- 
nized subdiAdsion thereqf. 

Section 7. The term " outside salesman " as used herein shall 
mean a salesman who is engaged not less than sixty (60) per cent of 

(49) 



50 

his working hours outside of the establishment, or any branch 
thereof, by "which he is employed. 

Section 8. The term " instructor " as used herein shall mean an 
employee who is engaged not less than sixty (60) per cent of his 
working hours in giving to students instructional services requiring 
the exercise of discretion, judgment, teaching ability, and knowledge 
of the course of study under consideration, and shall include, but 
without limitation, persons who compose courses of study or revisions 
thereof; but shall not include persons engaged in mechanical check- 
ing of examinations, quizzes, or other reactions submitted by students, 
or comparing the same with " model " answers, or other work not 
requiring the exercise of discretion, judgment, teaching ability and 
knowledge of the course of study under consideration. 

Section 9. The term " service school " as used herein shall mean a 
school the principal part of the curriculum of which consists of a 
course or courses of study which include the correction and grading 
by the school of Avritten reactions submitted by students to test said 
students' mastery of the subject. 

Section 10. The term "non-service school" as used herein shall 
mean a school the principal part of the curriculum of which con- 
sists of a course or courses of study which include merely the privi- 
lege of the student to ask questions thereon, or which do not include 
ajiy instructional or advisory service to the student at all. 

Article III — Hours 

Section 1. No employee, except as provided in Section 2 of this 
Article, shall be permitted to work in excess of forty (40) hours in 
any one week, nor more than six (6) days in any consecutive seven 
(7) days' period; nor more than eight (8) hours in any twenty- 
four (24) hour period (beginning at midnight) except that any 
employee may be permitted to work in accordance with either one 
but not both, of the following schedules : 

(a) On any one of his working days in any week, he may be 
permitted to Avork nine (9) hours, or 

(b) On any two of his working days in any week he may be 
permitted to work eight and one-half (814) hours. 

Provided, however, that each employee shall be paid at the rate 
of at least time and one-half (IV2) ^^^^ ^^1 hours worked in excess 
of eight (8) in any one day, and provided further that the weekly 
limitation of forty hours shall not thereby be exceeded. 

Section 2. The provisions of Section 1 of this Article shall not 
apply to executives or instructors who regularly receive thirty-five 
dollars ($35) or more per week; nor to outside salesmen; nor to 
emplo3^ees engaged in emergency maintenance or emergency repair 
work involving breakdowns and the protection of life or property, 
provided that such emergency maintenance and repair emi)loyees 
shall be paid at the rate of at least time and one-half (IV2) for all 
hours worked by them in excess of forty (40) in any one week. 
A report of each such emergency shall be mailed witliin three days 
thereafter to the Code Authority, giving such details as the Code 
Autiiority may prescribe. 

Sfx;tion 3. No emj)Ioyer shall knowingly permit any employee 
to work for any time which when totalled with that already per- 



51 

formed with anotlier emplo3^er or employers in this or any other 
industiy or trade exceeds the maxima permitted herein. 

Section 4. Tlie provisions of this Article with respect to hours 
of labor are subject to change by the Administrator on the basis 
of employment statistics to be compiled by the Code Authority in 
accordance with Article VI, Section 7 (j) of this Code. 

Article IV — Wages 

Section 1. No emplo3'ee except outside salesmen shall be paid in 
any pay period less than at the rate of fourteen dollars ($14) per 
week of forty (40) hours or thirty-five (35) cents per hour, except 
as provided in Section 6 of this Article. 

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. No employee whose wages are in excess of the mini- 
mum herein provided shall have his or her full-time weekly wage as 
of June 16, 1933, or the effective date of this Code, whichever is 
higher, reduced on account of any reduction in his or her full-time 
weekly working hours caused by this Code. Adjustments made in 
hourly rates of pay from June 16, 1933, to the effective date of this 
Code shall be reported to the Code Authority by each employer 
within thirty (30) days after the effective date of this Code. 

Section 4. No employee now employed at a rate in excess of the 
minimum herein provided shall be discharged and reemployed at a 
lower rate for the purpose of evading the provisions of this Code. 

Section 5. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees; and no employer shall discriminate against employees 
because of sex. 

Section 6. A person whose earning capacity is limited because 
of age, physical or mental handicap, or other infirmity, may be 
employed on light work at a wage below the minimum established 
by this Code, if the employer obtains from the State Authority, 
designated by the United States Department of Labor, a certificate 
authorizing such person's employment at such wages and for such 
hours as shall be stated in the certificate. Such Authority shall 
be guided by the instructions of the United States Department of 
Labor in issuing certificates to such persons. Each employer shall 
file each quarter with the Code Authority a list of all such persons 
employed by him, showing the wages paid to, and the maximum 
hours of work for, such employees. 

Article V — General Labor Provisions 

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

No person under eighteen (18) years of age shall be employed at 
operations or occupations which are hazardous in nature or dan- 

64004° 657-2 — —2 34 2 



52 

gerous to health. The Code Authority shall submit to the Adminis- 
trator 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 a.(i;e 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 age 
required by this section. 

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 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 pro- 
tection. 

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

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

Section 3. No employer shall reclassify employees or duties of 
occupations performed, or engage in any other subterfuge so as to 
defeat the purposes or provisions of the Act or of this Code. 

Section 4. Every employer shall provide for the safety and health 
of employees during the hours and at the places of their employment. 
Standards for safety and health shall be submitted by the Code Au- 
thority to the Administrator within six (6) months after the efi'ective 
date of this Code, and upon approval shall become effective as a part 
of this Code. 

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

Section G. All employers shall post and keep posted complete 
copies of the labor provisions of this Code in conspicuous places 
easily acces.sible 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. 

Section 7. All employees who are engaged in any activities falling 
within the definition of" the Graphic Arts Industries as set forth in 
the Code of Fair Competition for the Graphic Arts Industries, sliall 
be woi-ked under the labor provisions of the said (^ode of Fair C\)m- 
petition for the Graphic Arts Industries and not under the labor 
provisions of this Code. 



53 

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

organization and constitution 

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

(a) Nine (9) representatives of the Industry, or such other num- 
ber as may be approved from time to time by the Administrator, to 
be elected in accordance with the provisions of Section 2 of this 
Article, and to serve for a term of one year. 

(b) Not more than three (3) additional representatives of the 
Industry to be appointed by the Administrator if, in his discretion, 
any group or interest in the Industry is not adequately represented 
by the representatives mentioned in paragraph (a) of this Section, 
and to serve for a term of one year from the date of their appoint- 
ment. 

(c) Such additional members, to be known as Administration 
Members, without vote and without expense to the Industry, not to 
exceed three (3), as the Administrator may appoint to represent 
such groups or interests or such governmental agencies and to serve 
for such periods as he may designate. 

Section 2. The nine (9) Industry representatives provided for 
in Section 1 (a) of this Article shall be selected as follows: 

(a) Eight (8) shall represent service schools; and one (1) shall 
represent non-service schools. 

(b) Pending the election of the permanent Code Authority, the 
Code Committee (the body elected by the Industry to submit this 
Code to the National Recovery Administration) shall act as tem- 
porary Code Authority. 

(c) After the approval date of this Code and before the effective 
date thereof, and annually thereafter, the Code Authority (tsm.po- 
rary or permanent, whichever is in office at the time) shall select a 
list of eighteen (18) nominees representative of the various inter- 
ests in this Industry. Two (2) of these shall represent non-service 
schools, and sixteen (16) shall represent service schools; provided, 
however, that no member of the Industry shall be represented by 
more than one nominee. This list, with the service school nominees 
separate from the non-service school nominees, and with the school 
and trade association affiliations of each nomdnee indicated shall be 
submitted to the Administration Member or Members of the Code 
Authority for his or their approval or amendment. Thereafter the 
list with the school affiliations of each nominee indicated shall be 
printed on a ballot containing thereon eight (8) blank lines under 
the list of service school nominees and one blank line under the non- 
service school nominees and a certificate of assent to and compliance 
with this Code. The ballot and a copy of this Code shall be mailed 
to every member of the Industry whose existence can be determined 
by diligent search by the Code Authority. 

(d) Each member of the Industry signing the certificate of assent 
and compliance and otherwise complying with Section 7 (f) of this 
Article Avill be entitled to the number of votes indicated on the fol- 
lowing table (Schedule A). Only service schools may vote for the 



54 

service school nominees; and only non-service schools may vote for 
the non-service school nominees. Each non-service school must 
cast all its votes for one nominee. Any service school may divide 
its votes among any eight or less number of nominees or may cast 
all of them for one nominee. Selection may be made from the names 
printed on the ballot, or by writing in new names on the blank lines. 

(e) The Administration Member or Members of the Code Author- 
ity shall personally supervise the counting of votes. The eight (8) 
service school representatives receiving the greatest number of votes 
among the service school nominees and accepting the office, shall 
be elected. 

The one (1) non-service school representative receiving the great- 
est number of votes among the non-service school nominees, and 
accepting the office, shall be elected. 

(f) The temporary Code Authority shall make such additional 
reasonable rules for the first election as will enable it to be completed 
within thirty (30) days after the effective date of this Code, and 
subsequent elections shall be completed on or before the anniversary 
of the completion of the first. 

(g) Vacancies between elections shall be filled for the unexpired 
term by the Code Authority subject to disapproval by the Aclmin- 
istrator of the person so chosen. 

SCHEDULE A 

Members of the Industry must note upon their ballots the amount 
of their cash receipts from enrollment contracts which they have 
used in determining the number of votes to which they are entitled 
by this table. This figure may be used by the Code Authority in 
the determination of the member of the Industry's share of the 
expenses of administration of the Code in accordance with Section 
7 (f ) of this Article. 

Cash receipts from Enrollment Contracts (in Dollars) for the 
calendar year preceding the year in which the election is held : 

Number of votes 
allotted 

$nO,000.00 or less 9 

$r)0,000.01 to $100,000.00 18 

$1(K),000.01 to .$250,000.00 27 

$250,000.01 to $500.000.00 30 

$500,000.01 to $750,000.00 45 

$750,000.01 to $l,0(IO.()()n.OO 54 

$1,000,000.01 to .i;i..'(i(),()(io.(Ki 63 

$1,500,000.01 to $2,()(l(»,o:)().(i0 72 

$2,000,000.01 to $2,5(MJ,000.00 81 

More than $2,500,000.00 90 

Section 3. Eacli trade or industrial association directly or indi- 
rectly particij)ating in the seh'ction or activities of the C!ode Author- 
ity sliall ^1) iiiij:)ose no inetjuitable restrictions on membership, and 
(2) suliniit 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 infoi'mation as to membership, organ- 
ization, and activities as tlic Administrator may deem necessary to 
efFectuate the i)urposes of the Act. 



55 

Section 4. In order that the Code Authority shall at all tmies 
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. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent, or employee 
of the Code Authority. Nor shall any member of the Code Au- 
thority exercising reasonable diligence in the conduct of his duties 
hereunder be liable to anyone for any action or omission to act under 
this Code, except for his own wilful malfeasance or nonfeasance. 

Section 6. If the Administrator shall determine that any action 
of the Code Authority or any agency thereof may be unfair or un- 
just or contrary to the public interest, the Administrator may require 
that such action be suspended to afford an opportunity for investi- 
gation of the merits of such action and further consideration by 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 pro- 
ceed with such action in its original or modified form. 

Section 7. Powers and Duties. — The Code Authority shall have 
the following powers and duties subject to such rules and regula- 
tions as may be issued by the Administrator : 

(a) To insure the execution of the provisions of this Code and 
to provide for the compliance of the Industry with the provisions 
of the Act; Provided, however, that this shall not be construed to 
deprive duly authorized governmental agencies of their power to 
enforce the provisions of this Code or of the Act. 

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

(c) To obtain through a confidential agency from members of 
the Industry such information and reports as are required for the 
administration of the Code, and in addition to information required 
to be submitted to the Code Authority all or any of the persons 
subject to this Code shall furnish such statistical information as the 
Administrator may deem necessary for the purposes recited in Sec- 
tion 3 (a) of the Act, to such Federal and State agencies as the 
Administrator may designate; nor shall anything in this Code re- 
lieve any person of existing obligations to furnish reports to gov- 
ernment agencies. No individual reports shall be disclosed to any 
other member of the Industry or any other party except to such 
governmental agencies as may be directed by the President. 

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



56 

(e) To make recommendations to tlie 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) (1) It being found necessary in order to support the adminis- 
tration of this Code, and to effectuate the policy of the Act and to 
maintain the standards of fair competition established by this Code, 
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 obli- 
gations out of funds which shall be held in trust for the purposes 
of the Code and which may be 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 : 

First: An itemized budget of its estimated expenses for the 
foregoing purposes; and 

Second : 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 equi- 
table contribution as above set forth by all 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 
paragraph (1) hereof shall be entitled to participate in the selec- 
tion 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. 

(g) To recommend to the Administrator any action or measures 
deemed advisable, including further fair trade practice provisions 
to govern members of the Industry in their relations with each other 
or with other industries, measures for industrial planning, and sta- 
bilization of employment; and including modifications of this Code 
which shall become effective as part hereof upon approval by the 
Administrator after such notice and hearing as he may specify. 

(h) To study the question of the offering or giving by members 
of the Industry of money-back agreements, and guarantees of posi- 
tions or promotions to students, graduates and prospects, and within 
sixty (GO) days after the permanent Code Authority shall have 
been elected to formulate such trade practice rules and/or to set up 
such uniform contract forms as it deems necessary to protect the 
Industry and the consumer, and which shall become effective as 
part of this Code on approval of the Administrator after such 
notice and hearing as he may prescribe. 

(i) To study the question of setting up educational standards in 
the Industry and, within one year aiter the effective date of this 
Code, to report to the Administrator for his approval a plan for 
determining and administering such standards, which plan may be 



57 

made a part of this Code hj^ the Administrator after such notice 
and hearing as he may prescribe. 

(A) Each member of the Industry shall file with the Code 
Authority within thirty (30) days after the effective date of 
this Code a complete list of all courses of study offered by such 
member except such courses as are especially compiled for and 
at the request of an individual customer or group of customers, 
and a description of each course filed. Each member shall 
keep such list up to date by promptly filing with the Code 
Authority all changes therein as they occur. 

(j) To collect such statistics as the Administrator may require to 
determine the effect of the labor provisions of this Code upon em- 
ployment in this Industry and to submit the same to the Adminis- 
trator within sixty (60) days after the permanent Code Authority 
shall have been elected. 

(k) To investigate the use of premiums in this Industry and to 
report to the Administrator within sixty (GO) daj^s after the per- 
manent Code Authority shall have been elected, recommendations 
concerning further fair trade practice provisions to control this 
practice. 

Article VII — Trade Practice Rules 

Rule 1. No member of the Industry shall publish advertising 
(whether printed, radio, display, or of any other nature), which is 
misleading or inaccurate in any material particular, nor shall any 
member in any way misrepresent any service and/or course of study 
(including, without limitation, its use, scope, quality, length, num- 
ber of lesson assignments, origin, substance, character, nature, educa- 
tional content or preparation) or credit terms, values, policies, or the 
nature or form of the business conducted. 

Without limitation, the following shall be deemed unfair trade 
practices under the above rule: 

(a) Operating under a firm name which fails to indicate therein 
or therewith that the member of the Industry is an educational 
institution or offers instruction. 

(b) Overstating or misstating actual earnings in any given field 
or vocation; representing that unusually high earnings or earnings 
of unusual persons are tlie average or probable earnings in a given 
field or vocation; representing that unusual achievements or sala- 
ries of outstanding students or gi*aduates of a school are common to 
the students or graduates of such school. 

(c) Misrepresenting what a particular course of study can enable 
a particular prospective student to accomplish. 

(d) Overstating or misstating the actual or probable demand for 
the service of graduates, or the current demand in any field of em- 
ployment; or understating the requisite qualifications for any field 
of employment. 

(e) Representing that an offer is "limited" as to time or other- 
wise, or " special " or " for advertising ", when in fact it is not so 
limited and/or its prices and terms are regular. 



58 

(f) Eepresenting any service or commodity as "free" when it 
is an integral part of the course with which it is offered and is 
covered in the price of such course. 

(g) Representing tuition as being "free" when in reality it is 
covered in the sale price of required textual or other materials. 

(h) Inaccurately stating or listing the relationship between a 
school and the members of the faculty, advisory boards, writers or 
others connected therewith ; or falsely stating that students are given 
personal instructions by designated individuals ; or representing that 
a person is connected with such school when such is not the case. 

(i) Using " Help Wanted " advertisements to secure student pros- 
pects or using " blind " advertisements (in which the name oi the 
advertiser does not appear) for the same purpose. 

(j) Eepresenting that a school or its instructors or officers are 
actively connected with the United States Government, when in fact 
they are not thus connected. 

(k) Using pictures or other advertising or representation mis- 
leading prospective students regarding the size of the member of 
the Industry s office, or amount of such member's equipment, size 
of teaching staff, number of students enrolled, or age oi the 
institution. 

(1) Offering a course of study without stating in the contract and 
descriptive literature thereof whether such course consists of (1) a 
list of reading assignments only; (2) a list of reading assignments 
with merely the privilege of asking questions thereon; or (3) a list 
of reading assignments to which each student is expected to submit 
to the school for grading a written reaction in the form of discus- 
sion, solution of problems, or drawings for the purpose of testing 
his mastery of the subject. 

(m) Using marked-up or fictitious prices from which discounts 
are offered; or offering a price as marked down when in fact it is 
regular. 

(n) In the case of any member of the Industry teaching physical 
development of the body, the use in advertising of any picture or 
likeness of a person in such manner as to induce readers into believing 
that such person is connected with such school or its course of study 
when such is not the case; and/or the use in advertising of any 
such picture or likeness without clearly stating therewith the name 
of the person pictured and his actual relation to such school and 
course of study; and/or the use in advertising of any such picture 
or likeness which is retouched or otherwise rendered inaccurate in 
detail in such manner as to falsely or misleadingly portray the degree 
of strength of, or the physical development of the person pictured. 

KuLE 2. Each member of the Industry shall file by registered 
mail with tlie Code Authority within thirty (30) days aiter the 
effective date of this Code, his schedule of prices and terms of sale 
in full, including all discounts, allowances, and special offers, and 
money back agreements. No member shall offer or sell any service 
at any price or upon any terms except those stated in his filed price 
list. Each member, however, may change or revise his price list at 
will, and such change or revision shall bo considered duly filed 
immediately upon being mailed to the Code Autliority. All such 



59 

price lists and revisions shall be kept on file by the Code Authority 
and shall be available for public inspection. 

RuixE 3. 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 or 
money or otherwise, for the purpose of influencing a sale, nor shall 
a member secretly offer or extend to any customer any special serv- 
ice or privilege not extended to all customers of the same class, 
for the purpose of influencing a sale. 

Rule 4. No member of the Industry shall use advertising or 
other representation which refers inaccurately in any material par- 
ticular to any competitors or their services and/or courses of study, 
prices, values, credit terms, policies, equipment, teaching methods, 
teaching personnel, business methods, personal character or reputa- 
tion. 

Rule 5. No member of the Industry shall use statements or papers 
simulating court documents in the collection of accounts. 

Rule 6. No member of the Industry shall attempt to induce the 
breach of an existing contract between a competitor and his stu- 
dent, prospect, or source of supply; nor shall any member interfere 
with or obstruct the performance of such contractual duties or 
services. 

Rule 7. No member of the Industry shall give, permit to be given, 
or directly offer to give, anything of value for the purpose of in- 
fluencing or rewarding the action of any employee, agent or repre- 
sentative of another in relation to the business of the employer of 
such employee, the principal of such agent, or the represented party, 
without the knowledge of such employer, principal or party. This 
rule shall not be construed so as 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. 

Rule 8. Any act of any salesman, employee, agent, or representa- 
tive of a member of the Industry which if done by such member 
of the Industry would constitute a violation of this Code shall be 
presumed to have been done within the scope of the authority of 
such salesman, employee, agent, or representative, and done with 
the knowledge and consent of such member of the Industry 

Article VIII — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 
sions of subsection (b) of Section 10 of the Act, from time to time 
to cancel or modify any order, approval, license, rule, or regula- 
tion issued under Title I of said Act and specifically, out without 
limitation, to the ri^ht 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 



60 

and such notice and hearing as he shall specify, and to become effec- 
tive on approval of the President. 

Article IX — Monopolies, 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 X — 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. And when made, such increases should, so far 
as possible, be limited to actual additional increases in the seller's 
costs. 

Article XI — Effective Date 

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

Approved Code No. 447. 
Registry 1717-07. 

o 



Approved Code No. 448 
CODE OF FAIR COMPETITION 

FOR THE 

OPTICAL WHOLESALE INDUSTRY AND TRADE 

As Approved on May 31, 1934 



ORDER 



AppROvrNG Code of Fair Competitiox for the Optical Wholesale 
Industry and Trade 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Optical Wholesale Industry and Trade, 
and hearings ha\an^ been duly held thereon and the annexed report 
on said Code, containing findings with respect thereto, having been 
made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. G543-A, dated December 
30, 1933, and otherwise: do hereby incorporate by reference said 
annexed report and do nnd that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act ; and do hereby order that said Code 
of Fair Competition be and it is hereby approved, provided, that the 
following changes be, and the same hereby are^ made : 

(1) That Sections 1 and 2 of Article III, be and they hereby 
are, eliminated, and in lieu thereof, the following provision be, and 
it hereby is, inserted : 

" 1. No employee shall be permitted to work in excess of forty 
(40) hours in any one week, except that anj emplovee may be 
permitted to work for a maxunum of forty-eight (48) hours per 
week during any twelve (12) weeks in any fifty-two (52) week 
period." ^ , _ 

(2) That Subsection 1, Section 6, Article VI, be amended, and 
the same hereby is, to read as follows : . , , 

"(1) To provide facilities for arbitration, other than m labor 
disputes, and subject to the approval of the Administrator, to pre- 
scribe rules of procedure and rules to effect compliance with awards 
and determination." 

64007° 657-5 ^^34 (61) 



62 

(3) That Section 5 of Article VII be, and the same hereby is, 
eliminated from the Code. 

(4) That Subsection (a), Section 11 of Article X be amended, 
ana the same hereby is, to read as follows : 

"(a) The Code Authority shall, subject to the approval of the 
Administrator, as soon as practicable, issue a list of such allowances 
on all opthalmic equipment and machinery, classifying the same 
by name, type and model. Allowances shall not be made in excess 
of the amounts named in this list. 

Pending the issuance thereof, and after the issuance thereof, in 
the case of items not included in such list, no member of the in- 
dustry and trade shall allow on merchandise trade in more than a 
fair resale price, minus the cost of reselling on the goods or equip- 
ment taken in trade." 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended: 
Geo. L. Berry, 
Division Administrator. 

Washington, D. C., 

May 31, 1931 



EEPOKT TO THE PRESIDENT 

The President, 

The White House. 

SiK : A Public Hearing on the Code of Fair Competition for the 
Optical Wholesale Industry and Trade^ submitted by a Code Com- 
mittee represent^xig approximately 80 percent of the volume of 
business of said Trade, was conducted in Washington on December 
4, 1933, in accordance with the provisions of the National Industrial 
Recovery Act. , ,r^\ ■ 

The maximum hours permitted under this Code are forty (40) m 
any one week. Provision is made for 96 hours extra work in any 52 
week period, provided, that any employee working these extra hours 
will be granted leave with pay for a period equal to the overtime 
worked. ^ . 

The minimum wage provided in this Code is $16.00 per week of 
forty (40) hours. Learners, who are limited to a six months learn- 
ing period, are to be paid 80 percent of the minimum wage. Mes- 
sengers are to be paid at the rate of $12.00 per week. Provision is 
made for an equitable adjustment of the wage above the minimum. 

The members of the Optical Wholesale Industry and Trade, in ■ 
addition to performing the usual functions of wholesale distribution, 
are engaged in the vast majority of establishments in the fabricat- 
ing of lenses from the rough, semi-finished or uncut form to a fin- 
ished product to conform to the practitioner's prescription, and the 
fitting of these lenses to a suitable spectacle or eyeglass frame or 

mounting. ^ a •*. 

Prescriptions cannot be handled in volume and styled to a definite 
pattern inasmuch as each unit must be handled separately to meet 
certain individual requirements. It is necessary to have a flexible 
organization capable of hajidling a varying volume of work with at 
least a small percentage of the employees being able to perlorm 
various operations in prescription work in order to properly fabri- 
cate the varying types of work that come into the shop. It is neces- 
sary to maintain prompt service at all times and this requires a 
skeleton force, almost equal to the full time force, to handle orders 
which cannot be anticipated. The demand is occasioned by the 
highly personal character of the product, in that it me^ts the urgent 
needs of a wearer who would otherwise be unable to see with comfort 
and perform his usual duties. 

There w^ere 5,700 wage earners employed in this industiy in the 
first part of 1933. The 40 hour week would necessitate the reem- 
ployment of about 1,100 wage earners or an increase of slightly more 
than 16 percent. 

As a result of the increase in minimum wages, and in the total 
number employed, it has been estimated that the increase in total 
wages since the President's Reemployment Agreement is about 7 
percent over the wage total prior to that date. 

(63) 



64 

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; 

1 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 whicli tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanctions and supervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by 
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 
Industiy; and that said group imposes no inequitable restrictions 
on admission to membership therein. 

(d) The Co<:le is not desig-ned 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 stops of the economic process have 
not been deprived of the right to be heard prior to approval of said 
Code. 

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

Respectfully, 

May 31, 1934. 



CODE OF FAIR COMPETITION FOR THE OPTICAL 
WHOLESALE INDUSTRY AND TRADE 

Akticle 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 Optical Wholesale Industry and Trade and upon approval it3 
provisions shall be the s-tandards of fair competition for such Indus- 
try and Trade and binding upon every member thereof. 

Article II — Definitions 

1. The term " Optical Wliolesale Industry and Trade " as used 
herein shall mean the wholesale distribution to the optical retail 
and wholesale trade, of spectacles, oxfords, lorgnettes and other 
ophthalmic frames, mountings and accessories, all ophthalmic lenses, 
eyeglass and spectacle cases, parts, artificial eyes, sun-glasses, indus- 
trial goggles and eye protectors when equipped with prescription 
lenses, and the servicing of prescriptions and otherwise servicing 
eye wear and ophthalmic products, at wholesale to the optical retail 
and wholesale trade. 

The term also includes the sale to the retail trade of instruments, 
equipment, tools, machinery and furniture for use in examining eyes 
and making, fitting and repairing ophthalmic products. 

2. The term " member of the industry and trade " as used herein 
includes, but without limitation, any individual, paii;nershipj asso- 
ciation, corporation or other form of enterprise engaged m the 
Optical Wholesale Industry and Trade, 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 industry and trade, however compensated, 
except a member of the industry and trade. 

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

5. The term " Optical Retailer " or " Retailer " as used herein 
shall mean a retailer whose sale of ophthalmic merchandise at retail 
prices represents more than twenty-five percent (25%) of total sales 
of ophtlialmic merchandise. 

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

7. 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, 

(65) 



66 

Article III — Hours 

L In cities over 200,000 population or the immediate trade area 
of such city, no employees, except as hereinafter specified, shall be 
permitted to work in excess of forty (40) hours in any one week, 
except that any employee may be permitted to work for a maximum 
of forty-eight (48) hours per week during any twelve (12) weeks in 
any fifty-two (62) week period.^ 

2. In cities of 200,000 population or less, or the immediate trade 
area of such city, no employee shall be permitted to work in excess 
of forty-two (42) hours in any one week, except that any employee 
may be permitted to work for a maximum of forty-eight (48) hours 
per week during any twelve (12) weeks in any fifty-two (52) week 
period.^ 

3. In no event shall any employee be permitted to work in excess 
of ten (10) hours in any twenty-four (24) hour period, except when 
actually engaged in emergency maintenance or emergency repair 
work, provided, however, that all such instances of emergency^ over- 
time work sliall be reported immediately to the Code Authority. 

4. The maximum hours herein established shall not apply to per- 
sons engaged in a managerial, supervisory and/or executive capacity, 
who are paid thirty-five dollars ($35.00) or more per week, nor to 
outside salesmen. 

5. Each employee shall be granted leave of absence with pay for 
a period equal to the overtime worked as permitted and limited in 
Sections 1 and 2 of this Article. Such leave of absence shall be 
granted in daily periods, to be agreed upon between employer and 
employee, within the calendar year in which the overtime occurs, 
provided, hov/ever, that the following holidays, namely. New Years 
Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving and 
Christmas, shall not be considered as leave of absence under the above 
rule. 

(a) If any employee voluntarily or involuntarily leaves the em- 
ploy of an employer before said employee has been allowed leave 
of absence sufficient t-o compensate said employee for the overtime 
work, said employee shall be paid for such overtime based upon the 
regular hourly or weekly compensation. 

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

7. No employer shall knowingly permit any employee to work for 
any time which, when added to tne time spent at work for another 
employer or employers in this industry and trade, exceeds the maxi- 
mum permitted herein. 

Article IV — Wages 

1. No employee, except as hereinafter specified, shall be paid at 
less than sixteen dollars ($16.00) per week of forty (40) hours or 
forty-two (42) hours as provided in this Code. 

'Sections 1 and 2 of this Article eliminated and following inserted In lieu thereof! 
" 1. No employee shall be permitted to work in excess of forty (40) hours In any one 
wr-ck, except that any employee may be permitted to work for a maximum of forty-eight 
<48) hours per week during any twelve (12) weeks In any flfty-two (52) week peiiod." 
(See paragraph 2 (1) of order approving this Code.) 



67 

2. Learners shall be paid not less than eighty per cent (80%) of 
the minimum wage herein provided ; provided, however, that such 
learners thus paid shall be limited to a six (6) months learning 
period, whether served under one or more employers, and provided 
further that such learners thus paid shall- not exceed in number the 
following sciiedule: 

Establishments employing six or less employees shall be entitled 
to one learner thus paid; establishments employing between seven 
and twenty employees, inclusive, shall be entitled to two learners, 
thus paid; establishments employing more than twenty employees 
shall be entitled to one additional learner, thus paid, for every 
twenty emplo^^ees or fraction thereof. 

3. Messengers shall be ]:)aid not less than twelve dollars ($12.00^ 
per week for a forty (40) or forty-two (42) hour week, as provided 
in this code. 

4. Females performing substantially the same work as male em- 
ployees shall receive the same rate of pay as male employees. 

5. This Article establishes minimum rates of pay which shall 
appl3% irrespective of whether an emplo3'ee is actually compensated 
on time-rate, piece-Avork or other basis. 

6. A person whose earning capacity is limited because of age, 
physical or mental handiciij) may be employed on light work at a 
Avage 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 employ- 
ment at such wages and for such hours as shall be stated in the 
certificate. Each employer shall fde monthly with the Code Author- 
ity a list of all such persons employed by him, showing the wages 
paid to, and the maximum hours of Avork for such employes. 

7. For employees Avho are ])aid thirty-five dollars ($35.00) a week 
or less, no hourly, daily or Aveekly rates of pay shall be less than 
such rates existing as of June 10. 1!)33; and no employee shall be 
paid a Avage rate Avhich Avill yield a less Avage for the shorter full 
time Aveek of forty (40) or forty-tAvo (42) hours herein established 
than could be earned for the same class of work for the longer full 
time Aveek existing as of June 16, 1933. Wage increases for such 
employees established under P.TJ.A. shall at least be maintained. 

AirncLE V 

1. No person under eighteen (Is) years of age shall be employed 
in the Industry and Trade except office boys, office girls and messen- 
gers. No person under sixteen (16) years of age shall be employed 
in the Industry and Trade in any capacity. In any state any em- 
ployer shall be deemed to have com])lied Avith this provision as to 
age if he shall haA'e on file a certificate or permit, duly signed by the 
authority in such state empoAvered to issue employment or age 
certificates or permits showing that the employee is of the 
required age. 

2. (a) Employees shall have the right to organize and bargain 
collectively through representatives of their oAvn choosing, and 
shall bo free from the interference, restraint or coercion of employers 
of labor, or their agents in the designation of such representatiA^es, 

G4007° C.57-5 34 2 



68 

or in self -organization or in other concerted activities for the pur- 
pose of collective bargaining or other mutual aid or protection. 

(b) ISo empioj^ee and no one seeking employment shall be re- 
quired as a condition of employment to join any company union 
or to refrain from joining, organizing or assisting a labor organiza- 
tion of his own choosing, 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. No provision in this Code shall supersede any State or Fed- 
eral law which im23oses on employers more stringent requirements 
as to age of employees, wages, hours of work, or as to safety, health, 
sanitary or general working conditions, or insurance or fire protec- 
tion, than are imposed by this Code. 

4. No employer shall reclassify employees or duties of occupa- 
tions performed, or engage in any other subterfuge, so as to defeat 
the purposes or provisions of the Act or of this Code. 

5. All employers shall post and keep posted copies of this Code 
in conspicuous places accessible to all employees. Every member of 
the Industry and Trade shall comply v/ith 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. 

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 the Code. 

Article VI^Adminisit.ation 

Organization and Constitution. 

1. A Code Authority is hereby established consisting of nine (9) 
members to be selected by the members of the Industry and Trade 
through a fair method of selection approved by the Administrator. 

In addition to membership as above provided, there may be three 
(3) members, Avithout vote, to be known as Administration members, 
to be appointed by the Administrator to serve for such terms as he 
may specify. 

'2. Each trade or industrial association, directly or indirectly par- 
ticipating in the selection or activities of the Code Aij^horiiy, shall 

(1) impose no inequitable restriction on membership, and shall 

(2) submit to the Administrator true copies of its articles of associ- 
ation, by-laws, regulations, and any amendments when made thereto, 
together v.-ith such other information as to membership, organization 
and activities as the Administrator may deem necessary to effectuate 
the purpose of the Act. 

3. In order tliat the Code Authority shall at all times be truly 
representative of the industry and trade and in other respects comply 
with the provisions of the Act, the Administrator may prescribe such 
hearings as he may deem proper; and, thereafter, if he shall find 
that the Code Authority is not truly representative or does not in 
other respects comply with the provisions of the Act, may require 
an ai)pi-(i))n'ide modification of the Code Autliority. 



69 

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 Authority, exercising 
reasonable diligence in the conduct of his duties hereunder, be liable 
to anyone for any action or omission to act under this Code, except 
for his own willful mis-ieasance or non-feasance. 

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

f). 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 
this Code. 

(a) To insure the execution of the provisions of this Code and 
to provide for the Compliance of the industry and trade with the 
provisions of the Act. 

(b) To adopt bylaws and rules and regulations for its procedure, 

(c) To obtain from members of the industry and trade 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- and trade 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 he may desig- 
nate; provided that nothing in this Code shall relieve any member 
of the industry and trade of any existing obligations to furnish 
reports to any Government agency. No individual report shall 
be disclosed to any other member of the industry and trade or 
any other party except to such Governmental agencies as may be 
directed by the Administrator. 

(d) To effectuate further the policies of the Act, the Code Au- 
thority shall act as a planning and fair practice agency for the 
optical wholesale industry and trade and may from time to time 
present to the Administrator recommendations based on conditions 
in the industry as they may develop which will tend to promote the 
operation of this Code and the policy of tlie Act. 

(e) If at any time the Code Authority feels that any provision 
of this Code is being violated by any member of the industry and 
trade, it may require reports to be submitted by such member, cer- 
tified by some impartial agency and person approved by the Code 
Authority and the member of the industry and trade, provided such 
member of the industry and trade agrees to submit such reports. 

(f ) To use such trade associations and other agencies as it deems 
proper for the carrying out of an}^ of its activities provided for 
herein, provided that nothing herein shall relieve the Code Authority 



70 

of its duties or responsibilities under this Code and that such trade 
associations and agencies shall at all times be subject to, and comply 
with the provisions hereof. 

(g) To make recommendations to the Administrator for the co- 
ordination of the administration of this Code with such other 
codes, if any. as may be re-lated to the trade. 

(li) (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 Avhich shall be held in trust for the pur- 
poses of the Code and raised as hereinafter provided ; 

(b) To submit to the Administrator for his approval, sub- 
ject 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 sup- 
port such budget shall be contributed by all members of the 
Industry and Trade 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 
approved by the Administrator, to determine and collect equi- 
table contributions as above set forth, and to that end, if neces- 
sary, to institute legal proceedings therefor in its own name. 

(2) Each member of the industry and trade 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 and trade complying with the Code and making such con- 
tribution shall be entitled to participate in the selection of the 
members of the Code Authority or to receive the benefits of its 
vciluntar}- activities or to make use of any N.R.A. insignia. 

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

(j) To recommend to the Administrator any action or measure 
deemed advisable, including further fair trade practice provisions 
to govern members of the industry and trade in their relations 
with each other or with other trades or industries; measures for 
industrial planning, and stabilization of employment, and including 
modifications of this Code which shall become effective as part hereof 
upon approval by the Administrator after such notice and hearing 
as he may specify. 

(k) T() appoint a Trade Practice Committee which shall meet 
with the Ti-ade Practice Committees appointed under such other 
codes as may be related to the industry and trade for the purpose 
of formulating fair trade practices to govern the relationship be- 
tween emi)loyers under this code and under such other codes to the 
end that such fair trade practices may be proposed to the Adminis- 
trator as amendments to this code and such other codes. 



71 

(1) To provide facilities for arbitration, and subject to the ap- 
proval of the Administrator, to prescribe rules of procedure and 
rules to effect compliance with awards and determination.^ 

7. Failure of any member of the industry and trade to furnish any 
of the information required under this Code shall constitute a 
violation of the Code. 

Article VII — Merchandising 

(1) Filing prioe lists. — (a) Every member of the industry and 
trade shall file, within thirty (30) days from the effective date of 
this Code, with the Code Authority either one of the following docu- 
ments as set out in sub-sections (1) and (2) hereof. 

(1) A list of his prices which shall become effective immediately 
upon filing. Copies of said price lists, and an}" revision thereof, 
shall bear the date on which such list or lists are effective and shall 
be made available immediately to all interested persons including 
members of the industry and trade and their customers. Members 
of the industry and trade may file reWsions of their price lists with 
the Code Authority at any time. 

(2) A written statement specifying that he elects to follow a des- 
ignated standard price list or designated lists previously filed with 
the Secretary of Code Authority. Price lists adopted by members 
who do not file their own price list must be followed complete; all 
extra charges, changes in price, and the like appearing on the adopted 

Erice list must be observed by the member adopting the list. Mem- 
ers of the industry and trade, adopting a price list pursuant to this 
paragraph, are bound by the revisions in the price lists so adopted 
unless they withdraw their election under this paragraph and file a 
complete price list or lists of their own. 

(b) The net prices (after deduction of all discounts, allowances, 
etc.) of products listed on any price list filed or adopted by any 
member of the industry and trade shall, in every instance, represent 
at least the cost of the member filing or adopting the same. 

(2) Cost accounting. — (a) The standards of fair competition for 
the industrv with reference to pricing practices are declared to be 
as follows (for definition of terms see subsection (4) : 

1. 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 
below the lowest reasonable cost of such product, in violation of sub- 
section (3) hereof, is forbidden. 

(2) No-mial 'provision {cost estimating methods). — The Code Au- 
thority shall cause to be formulated methods of accounting and cost 
findng and/or estimating capable of use by all members of the in- 
dustry and trade and shall submit such methods to the Administrator 

=" Changed to read as follows: "(1) To provide for facilities for arbitration, other 
tban in labor disputes, and subject to the approval of the Administrator, to prescribe 
rules of procedure and rulffs to effect compliance with awards and determination." See 
paragraph 2 (2) of order approving this Code. 



72 

for review and possible disapproval. Full details and instructions 
concerning such methods shall be made available to all members of 
the industry and trade and to the Administrator and thereafter it 
is intended that all members should utilize the principles of such 
methods. 

(3) Emergency 'provision {lowest reasonable cost). — When an 
emergency exists, the Code Authority may cause an impartial agency 
to investigate 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 Admin- 
istrator and subject to his approval or modification after such notice 
and opportunity to be heard as he may prescribe. The Code Au- 
thority or the Administrator may, from time to time, cause such 
determinations to be reviewed or reconsidered and appropriate action 
taken. 

(4) Dejimtions. — An " Emergency " exists whenever the Adminis- 
trator determines that destructive price cutting is rendering inef- 
fective or seriously endangering the maintenance of the provisions of 
this Code. 

"Destructive price cutting" — 

(i) When 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 (3) hereof; 

(iii) It shall be an absolute defense to any charge of destructive 
l)rice cutting, if an impartial agency, designated or approved by the 
Administrator, shall find, 

(aa) That the price complained of is justified by existing competi- 
tion, evidence of which has been reported to the Code Authority; 

(bb) That the price complained of is justified as a method of dis- 
posal 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 C)f the announced cost estimating methods. 

3. Sales Below Cost or Prices Listed. — (a) No member of the in- 
dustry and trade shall sell, or offer to sell, at prices lower than those 
specified in price lists duly filed or adopted and/or sell, or offer to 
sell, below cost; except that obsolete, discontinued lines or surplus 
stocks may be disposed of, or inventory may be converted into cash 
to moet pressing financial needs, at such prices as are necessary to 
accomplish these purposes. Such stocks shall not be sold until 
fifteen (15) days after notice thereof has been filed with the Code 
Authority, together with an itemized list of the merchandise to be 
sold. 

(1) The cost of every member of the Optical Wholesale Industry 
and Trade shall be calculated solely on the basis of the wholesale 
business conducted by such member, whether or not such member 
is also engaged in tlie Optical Manufacturing Industry and/or the 
Optical Ketail Trade. The fact that a member engages in either the 
Optical Manufacturing Industry or tlie Optical Retail Trade at a 



73 

profit shall be wholly immaterial to any complaint that a member 
of the Optical "V^Tiolesale Trade has violated this article of the Code. 

4. Price Protection. — (a) It shall be an unfair trade practice for 
any member of the industry and trade to guarantee the delivery of 
merchandise, or to deliver merchandise, at prices other than those 
that are in effect in the printed list or lists hied by the member, or 
designated list or lists adopted by the member, on tile with the Code 
Authority at the time the delivery is made. 

5. Discouiits. — (a) The Code Authority, with the approval of 
the Administrator, may from time to time classify optical retailers 
for the purpose of establishing maximum trade discounts which may 
be granted by members of the Industry and Trade to such optical 
retailers.' 

6. Dis-peiising for Oculists and Optometrists. — (a) Where a mem- 
ber of the Industry and Trade dispenses glasses directly to a cus- 
tomer's patient for the account of a customer he must furnish said 
customer's patient with a printed statement which shall indicate 
plainly to the patient that the sale, replacing or repairing of glasses 
is being made by the wholesaler for the prescriber and that the price 
charged is the retail price charged as set by the prescriber. A charge 
shall be made by a member of the Industry and Trade against the 
prescriber for such service. 

(b) Any transaction involving secret rebates is an unfair trade 
practice. 

Article VIII — Credit Control 

1. Terms. — (a) Except as provided in Article X, Section 14 
thereof, with respect to the sale of ophthalmological and shop e(iuip- 
ment on deferred payments, the maximum terms, which shall be 
given by anj' member of the Optical Wholesale Industry and Trade, 
shall be two percent (2%) cash premium, if remittance is dated and 
mailed by the tenth (10th) of the month following dat« of invoice, 
when the account is due; thereafter, the net price must be paid. 
Terms shall be stated on all invoices. 

2. Credit information.. — (a) -The Code Authority is hereby author- 
ized to establish a Credit Bureau to act as the agency of the Code 
Authority in the dissemination of credit information throughout the 
Industr3^ Information so disseminated by it, and any other confi- 
dential credit information, shall not be revealed by any member of 
the Optical Wholesale Industry and Trade to any customer or to 
anyone not entitled thereto. 

3. Past due accounts. — (a) Interest at the rate of six percent (6%) 
per annum shall be charged on balances sixty (60) days or more 
past due, the interest to commence from the time when the balance 
became due. Such balance shall be reported promptly to the Credit 
Bureau in accordance with the Credit Bureau's recording system and 
on the forms provided by said Bureau. 

(1) Every member of the industry and trade shall request a 
promissory note for such balances, together with the interest rate 
herein prescribed. 



Eliminated. (See par. 2 (3) of order approving this Code.) 



74 
Aeticle IX — Quality Maintenance 

1. In view of the importance of the high quality of ophthalmic 
merchandise to the preservation and improvement of eyesight, the 
Code Authority may from time to time promulgate rules and regula- 
tions specifying and defining t*he quality of ophthalmic merchandise 
■which may be sold by members of the Optical Wholesale Industry 
and Trade. Such rules and regulations, when approved by the 
Administrator, shall have the same force and effect as the provisions 
of this Code. 

2. No member of the industry and trade shall knowingly purchase 
ophthalmic merchandise for resale which shall be manufactured 
wholly or in part under circumstances which violate the provisions 
of any such code or codes of fair competition under the National 
Industrial Recovery Act as may, from time to tim.e, be in force with 
respect to the manufacture of such merchandise. 

Article X — Unfair Trade Practices 

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

2. No member of the industry and trade shall publish any state- 
ment, advertisement or representation which falsely lays claims to a 
policy, or continuing practice of generally underselling competitors. 

3. No member of the industry and trade shall publish advertising, 
which refers inaccurately in any material particular to any com- 
petitors or their goods, prices, values, credit terms, policies or 
services. 

4. No member of the industry and -trade shall give, permit to be 
given, or directly offer to give, anything of value for the purpose 
of influencing or rewarding the action of any employee, agent or 
representative of another in relation to the business of the employer 
of such employee, the principal of such agent or the 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 herein- 
above defined. 

5. No member of the industry and trade shall operate a separate 
optical business whether wholesale or retail ; or own or control, either 
by stock ownership or otherwise, directly or indirectly, any such 
separate optical business, except, (a) where such separate business 
is operating under the same firm or trade name as that of the member 
owning, operating or controlling the same, or under a name which 
clearly discloses the fact of such operation, ownership or control; 
or (b) wliere full details of the operation, ownership or control of 
such separate business have been previously filed wdth the Secretary 



75 

of the Code Authority hj the member owning, operating or con- 
trolling such separate business, and such information shall be avail- 
able to any interested party. 

6. No member of the industry and trade shall advertise in pro- 
grams of meetings, conventions or social affairs conducted by mem- 
bers of societies of the ophthalmic profession. 

7. No member of the industry and trade shall 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 and trade 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. 

8. No member of the industry and trade shall make price dis- 
criminations between different purchasers or between different lo- 
calities which prices are not based on legitimate cost, or sales and 
delivery costs. This provision, however, shall not apply with respect 
to clergj'men, religious and charitable institutions, sales to a mem- 
ber's employees, or to persons whose inability to pay has been estab- 
lished by a reputable social service agency. 

9. No member of the industry and trade shall bill small quantities 
at rates applying to larger quantities, or sell merchandise at quantity, 
rates and permit the buyer to withdraw his purcliases from stock 
in small quantities according to his current needs (except in the case 
of customers' printed cases held for delivery with prescription jobs). 

10. No member of the industry and trade shall withhold from or 
insert in any quotation or invoice any statement that makes it inac- 
curate in any material particular, 

11. No member of the industry and trade shall make excessive 
" trade in " allowances. 

(a) The Code Authority shall, as soon as practicable, issue a 
list of such allowances on all ophthalmic equipment and machinery, 
classifying the same by name, type and model. Allowances shall 
not be made in excess of the amounts named in this list. 

Pending the issuance thereof, and after the issuance thereof, in 
the case of items not included in such list, no member of the Industry 
and Trade shall allow on merchandise traded in more than a fair 
resale price, minus the cost of reselling on the goods or equipment 
taken in trade.* 

12. No member of the industry and trade shall accept single 
frames, mountings or parts for exchange unless in condition suitable 
for return to stock. If suitable and if accepted by the seller they 
shall be credited to the purchaser at not more than the price at 
which purchased and items furnished in exchange shall be charged 
at the prevailing prescription price. 

* Subsection (a) amended to read as follows: 

"(a) The Ooae Authority shall, subject to the Approval of the Administrator, as soon 
as practicable, issue a list of surh allowances on all ophthalmic equipment and machinery, 
classifying tho same by name, type and model. Allowances shall not be made in excess 
of the amounts named in this list. 

Pending the is.suance thereof, and after the issuance thereof, In the case of items not 
Included in such list, no member of the industry and trade shall allow on merchandisd 
trade in more than a fair resale price, minus the cost of reselling on the goods or equip- 
ment taken in trade." (See par. 2 (4) of order approving this Code.) 



76 

(a) Lenses, fitting sets or samples are not subject to exchange or 
return for credit except for defects of manufacture, delays or errors 
in filling orders. 

13. No member of the industry and trade shall ship merchandise, 
supplies, samples or fitting cases on consignment, except that lor- 
gnettes, oxfords and ar.tificial eyes may be shipped on consignment, 
provided, they are not subject to return after fifteen (15) days, ex- 
cept that for legitimate credit reasons where such merchandise is 
returned after fifteen days, the complete circumstances shall be re- 
ported to the Code Authority, and except that ophthalmological in- 
struments and equipment may be consigned for demonstration and 
trial for a period not to exceed thirty (30) days. 

14. The Code Authority may establish a uniform contract for the 
sale of opthalmological and shop equipment on a deferred payment 
plan and, when such contract is approved by the Administrator, all 
members of the Industry and Trade shall use the same. 

15. No member of the industry and trade shall deliberately in- 
fringe on or evade patents or imitate trade marks or trade names 
with intent to mislead or deceive purchasers. 

Article XI — Evasion 

1. No member of the industry and trade shall engage in any subter- 
fuge to defeat the purposes or provisions of the Act or of this Code. 

Article XII — Modification 

1. This Code and all the provisions thereof are expressly made sub- 
ject to the right of the President, in accordance jvith the provisions 
of subsection (b) of Section 10 of the Act, from time to time to can- 
cel or modify any order, approval, license, rule or regulation 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 Adminis- 
trator, be modified or eliminated in such manner as may be indi- 
cated by the needs of the public, by changes in circimistances, or by 
experience. 

Article XIII — Monopolies 

1. No provision of this Code shall be so applied as to permit 
monopolies or monopolistic practices, or to eliminate, oppress or dis- 
criminate against small enterprises. 

Article XIV — Price Increases 

1. Whereas the policy of the Act to increase real purchasing 
power will be made more difficult of consummation if prices o| 
goods and services increase as rapidly as wages, it is recognized 
8iat price increases except such as may be required to meet indi- 
vidual cost should be delayed, but when made such increases should, 



77 

so far as possible, be limited to actual additional increases in the 
seller's costs. 

Article XV — Effective Date 

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

Approved Code No. 448. 
Registry No. 1031-3-03. 

o 



Approved Code No. 449 
CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE MONUMENTAL GRANITE INDUSTRY 
As Approved on May 31, 1934 



ORDER 



Appro\t[ng Code of Fair Competition for the Wholesale Monu- 
mental Granite 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 AVholesale Monumental Granite Industry, 
and hearings havinj^ 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 otiierwise; 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. Glanct, 

Division Administrator. 

Washington, D.C, 

May 31, 193^. 

64182° 657-7 34 (79) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Wholesale Monumental Granite Industry as revised after a Public 
Hearing conducted in Washington, D.C., on January 2, 1934, in ac- 
cordance with the provisions of the National Industrial Recovery Act. 

pro\t:sions as to wages and hours 

Employees shall not be permitted to work in excess of forty hours 
per week, eight hours per day, or more than five days in any week, 
except as otherwise specifically provided. Office, accounting or cler- 
ical employees shall not be permitted to work in excess of forty 
hours per week or nine hours in any day. Watchmen shall not be 
permitted to work in excess of fifty-six hours per week or more than 
six days in any seven. Firemen engaged in manufacturing opera- 
tions or truckmen shall be permitted to work not in excess of forty- 
eight hours per week or more than six days in any seven; provided 
tliiit one and one-half times the normal rate of pay shall be paid for 
hours worked in excess of eight per day and forty per week. Hourly 
and daily limitations shall not apply to professional, executive, ad- 
ministrative or supervisory employees who regularly receive more 
than thirty-five dollars per week, to outside salesmen, or to employees 
engaged in emergency maintenance or emergency repair work in- 
volving breakdowns or the protection of life or property, but in such 
special cases one and one-half times the normal rate shall be paid 
for hours worked in excess of eight per day or forty per week. In 
order to recover time lost due to inclement weather, employees may 
be permitted to work in excess of the hourly limitations but not to 
exceed an average of forty hours per week for any three months' 
period or a maximum of forty-eight hours per week; provided one 
and one-half times the normal rate is paid for all hours worked in 
excess of forty per week or eight per day. 

No employee shall be paid less than at the rate of forty cents per 
hour except as otherwise specifically provided. In North Carolina, 
South Carolina, Georgia and that portion of Virginia which lies 
south of the James River, including Allegheny County, no employee 
shall be paid at less than at the rate of thirty cents per hour. Ac- 
counting, clerical and office employees shall be paid not less than 
at the rate of fifteen, fourteen and one-half and/or fourteen dollars 
per week, depending upon the population of the place of their em- 
ployment. Office boys and office girls shall be jniid not less than at 
the rate of eighty percent of the minimum wage rate established 
for accounting, clerical and office employees but their total number 
shall not exceed in any month fi\e percent of an employer's total 



81 

number of accounting, clerical and office employees, but each em- 
ployer may have at least two such employees. Irrespective of 
whether an employee is compensated on a time rate, piece work or 
other basis, a minimum rate of pay is established. With the per- 
mission of the state authority, handicapped persons may be employed 
on light work at such wages and for such hours as the state authority 
permits. Wages shall be exempt from any payments other than 
those voluntarily made by an employee or required by law. Com- 
pensation of employees receiving more than the minimum rates of 
pay shall be equitably adjusted and reported to the Code Authority 
but in no event shall rates of pay be reduced. 

ECONOMIC EFFECTS OF THE CODE 

The sales of industry products for 1932 were 62.6 percent less than 
for 1929. According to the Reseach and Planning Division's report 
there were, in 1929, eighteen thousand three hundred wage earners 
employed by the Industry; thirteen thousand in 1933. 

Average hours worked per week in 1929 were forty-two and in 
1933, thirty-four. The number of hours an employee may work is 
controlled somewhat by weather conditions and such a factor has 
been given consideration in fixing houre for this Industry's workers. 
An increase in business will have a beneficial effect on reemploy- 
ment. 

The minima wage rates established in this Code and the provision 
for an equitable adjustment of wages above the minima will ma- 
terially increase the purchasing power of the wage earners in this 
Industry. Trade practice provisions of the Code are expected to 
remedy the unfair competition that has existed in the past. 

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 Avell designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, by 
inducing and maintaining united action of labor and mana^^ement 
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 emploj^s not more than 50,000 em- 
ployees; and is not classified by me as a major industry. 



82 

(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 re- 
striction on admission to membership therein, 

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

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

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

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

Hugh S, Johnson, 

A dministrat or. 
May 31, 1934, 



CODE OF FAIR COMPETITION FOR THE ^VHOLESALE 
MONUMENTAL GRANITE 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 Wholesale Monumental Granite In- 
dustry and shall be the standards of fair competition for such In- 
dustry and shall be binding upon every member thereof. 

Article II — Definitions 

Section 1. The term " Wholesale Monumental Granite Industry " 
or " Industry " as used herein includes the quarrying, manufactur- 
ing, fabricating, selling at Avholesale, and/or distributing at whole- 
sale by the quarrier, manufacturer, and/or wholesale distributor of 
monumental granite. 

Section 2. The terms " monument " and " monumental " as used 
herein include granite monuments, memorials, markers, headstones, 
mausoleums, tombs, coping, lot enclosures, surface burial vaults, 
urns, seats, benches, sundials and all other related types of memo- 
rials as are usually erected in a cemetery or elsewhere, and rough 
granite, and partly finished granite intended or suited for these 
purposes. 

Section 3. The term " quarrier " as used herein includes anyone 
in the industry who produces granite in the rough to be used for 
monumental purposes. 

Section 4. The term " wholesale manufacturer " as used herein 
includes anyone engaged in the conversion of rough granite into 
finished or semi-finished monuments, and who finds his outlets 
through distribution to wholesalers and retailers. 

Section 5. The term " wholesale distributor " as used herein in- 
cludes anyone who purchases from the producer, sells to the retailer, 
and assumes responsibility for the account. 

Section 6. 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 7. The term " employee " as used herein includes any 
and all persons engaged in the industry, however compensated, ex- 
cept a member of the industry who is not engaged in manual work 
of the industry. 

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

Section 9. The terms '' President ", "Act ", and "Administrator " 
as used herein shall mean, respectively, the President of the United 

(S3) 



84 

States, Title I of the National Industrial Eecovery Act, and the 
Administrator for Industrial Recovery. 

Section 10. Population for the purposes of this Code shall be 
determined by reference to the latest Federal Census. 

Article III — Hours 

Section 1. Maximum Hours. — Except as hereinafter otherwise 
provided, no employee shall be permitted to work in excess of forty 
(40) hours in any seven (7) day period or eight (8) hours in any 
twenty-four (24) hour period or more than five (5) days in any 
seven (7) day j^eriod. 

(a) Employees engaged in office, accounting and/or clerical work 
shall not be permitted to work in excess of nine (9) hours in any 
twenty-four (24) hour period, or more than forty (40) hours in any 
one (1) week; and 

(b) Employees engaged as watchmen shall be permitted to work 
not in excess of fifty-six (56) hours in any one week, or more than 
six (6) days in any seven (7) day period; and 

(c) Employees engaged as firemen in manufacturing operations 
or truckmen shall be permitted to work not in excess of forty-eight 
(48) hours in any seven (7) day period, or more than six (6) days 
in any seven (7) day period; provided, however, one and one-half 
times the normal rate of pay shall be paid for hours worked in excess 
of eight (8) per day or forty (40) per week; and 

(d) The limitation respecting hours and days, fixed herein, shall 
not apply to employees 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 times the 
normal rate shall be paid for hours worked in excess of eight (8) 
hours in any twenty-four (24) hour period or forty (40) hours in 
any one (1) week; and 

(e) Employees may be permitted to exceed the hourly limitations 
w^hen employment is necessary to recover time lost due to inclement 
weather; provided, however, that such excess time shall not exceed 
an average of forty (40) hours per week for any three (3) months' 
period of the year or a maximum of forty-eight (48) hours per week, 
and ; provided further, that overtime rates shall be paid for all hours 
worked in excess of forty (40) hours per week or eight (8) hours 
per day at the rate of at least one and one-half times the normal 
rate; and 

(f) The limitations respecting hours and days fixed herein shall 
not apply to employees engaged in professional, executive, adminis- 
trative, or supervisory work, receiving regularly more than thirty- 
five (35) dollars per week, and outside salesmen. 

Section 2. Employment Ijy Several Ewpl overs. — No employer 
sliall knowinglj^ j)ermit any employee to work for any time which, 
wlien totaled with that already performed with another employer 
or employers in this or any other industry, exceeds the maximum 
permitted herein. 

Section 3. Any emploj-er who engages in manual labor such as 
is usually perfoi-uied by an employee shall be subject to the provi- 
sions of this Code as to nuiximuni hours of employment. 



85 
Aeticle IV — ^Wages 

Section 1. No employee shall be paid less than at the rate of forty 
(40) cents per hour except in the states of North Carolina, South 
Carolina, Georgia and that portion of the state of Virginia which 
lies south of the James River, including Allegheny County, where 
such employees shall be paid not less than at the rate of thirty (30) 
cents per hour, except as hereinafter provided. 

Section 2. (a) Accounting, clerical and office employees shall be 
paid not less than fifteen (15) dollars per week in any city of over 
500,000 population, or in the immediate trade area of such city: 
fourteen dollars and fifty cents ($14.50) per week in any city oi 
between 250,000 and 500,000 population, or in the immediate trade 
area of such city; or fourteen (14) dollars per week in any other 
place; and 

(b) Office boys and office girls shall be paid not less than eighty 
(80) percent of the minimum wage rates herein established for 
accounting, clerical and office employees under paragraph (a) above; 
provided, however, that the total number of all such employees 
employed by any one employer shall not exceed in any calendar 
month five (5) percent of the total number of all employees classi- 
fied as accounting, clerical and office employees, but may be at least 
two (2) such employees. 

Section 3. This Article establishes a minimum rate of pay which 
shall apply irrespective of whether an employee is actually compen- 
sated on a time-rate, piecework, or other basis. 

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

Section 5. A person whose earning capacity is limited because of 
age, physical or mental handicap or other infirmity may be employed 
on light work at a wage below the minimum established by this Code 
if the employer obtains from the State authority designated by the 
United States Department of Labor a certificate authorizing such 
l^erson'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 LaDor 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 vv'ages paid to, and the maximum hours of work for 
such employee. 

Section 6. Wages shall be exempt from any payments for pen- 
sions, insurance, or sick benefits other than those voluntarily paid 
by the employee or required by law. The employer shall not accept, 
directly or indirectly any rebates on such wages nor give anything 
of value or extend any favor or favors to any employee, directly or 
indirectly, for the purpose of influencing the rates of wages or 
working conditions of any employee. 

Section 7. Equitable adjustment of compensation of employees 
receiving more than the minimum rates of pay shall be made by all 
employers who have not heretofore made such adjustment, and all 
employers shall within thirty (30) days after approval of this Code, 
report in full to the temporary Code Authority and to the Admin- 

64182° 657-7 34 2 



86 

istrator concerning such adjustments whether made prior to or 
subsequent to such approval, provided, however, tliat m no event 
shall hourly rates of pay be reduced. 

Article V — 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 shall be employed at operations or occupations which are haz- 
ardous in nature or dangerous to health. The Code Authority shall 
submit to the Administrator for approval within sixty (60) days 
after the effective date of this Code, a list of such operations or 
occupations. In any State an employer shall be deemed to have 
complied with this provision as to age if he shall have on file a 
valid certificate or permit duly signed by the Authority in such 
State empowered to issue employment or age certificates or permits 
showing that the employee is of the required age. 

Section 2. 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 pur- 
poses 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. Within each State this Code shall not supersede any 
Federal laws or any laws of such State imposing more stringent 
requirements on employers regulating the age of employees, wages, 
hours of Avork, safety or health, insurance, fire protection, or general 
working conditions than under this Code. 

Section 6. Employers shall not reclassify employees, their basis 
of compensation, or the duties of occupations performed by employ- 
ees, or engage in any other subterfuge so as to defeat the provisions 
of this Code or the purposes of the Act. 

Section 7. All employers shall comply with the rules and regula- 
tions issued from time to time by the Administrator with respect to 
posting notices, bulletins and extracts from this Code. 

Section 8. Nothing herein contained shall be construed to apply to 
employees whose hours of employment and/or rates of wages are 
established for specific projects by competent governmental author- 
ity (Federal, State, or political subdivision thereof) acting in accord- 
ance with law, or to employees whose hours of employment and/or 
rates of wages are established by wage agreements now in force; 
provided, however, such agreement or projects do not provide condi- 
tions of employment, rates of wages, or hours of labor less favorable 
to an employee than those contained in this Code. 

Section 5). Safety and Health. — 10 very employer shall make rea- 
sonable provisions tor the safety and health of his employees at the 
place and during the hours of their employment. He shall not be 



87 

relieved from compljnng with all national governmental regulations 
referring to occupational safety and health insofar as the same may- 
apply to the work of his establishment. 

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 10. No member of the industry shall contract his work to 
any person except when such person is subject to the provisions of 
this Code. 

Section 11. Apprentices (or helpers) serving three (3) years in 
learning the trade, shall not exceed in number m any one establish- 
ment twenty-five (25) percent of the number of journejanen cutters 
employed by any one (1) employer. 

Article VI — Administration 

Section 1. To further effectuate the policies of the Act, a Code 
Authority is hereby constituted for the administration of this Code, 

Section 2. The ibode Authority shall consist of the Chairmen of 
the several Divisional Control Committees hereinafter established. 
In addition to membership as above provided, there may be three 
members, without vote, to be appointed by the Administrator, to 
serve for such term or terms as he may specify. No two members, 
or alternates, of the Code Authority shall be affiliated with any single 
member of the Industry. 

(a) One (1) alternate may be selected from each Division to rep- 
resent the Chairman of the Divisional Control Committee on the 
Code Authority in his absence. No alternate shall, however, be 
affiliated with any member of the industry already represented on the 
Code Authority. 

Section 3. The Code Steering Committee of the Wholesale Monu- 
mental Granite Industry is hereby designated as a temporary Code 
Authority until the permanent Code Authority hereinbefore referred 
to shall have been elected. 

Section 4. The temporary Code Authority is hereby designated as 
the agency to conduct the first election, or elections, of the Divisional 
Control Committee. Such elections shall be held within sixty (60) 
days following the effective date of this Code. 

Section 5. Divisions are hereby established as follows : 

Division No. 1. — Comprising the States of Maine and New 
Hampshire. 

Division No. 2. — Comprising the State of Vermont. 

Divimon No. 3. — Comprising the State of Massachusetts. 

Division No. If. — Comprising the States of Rhode Island and 
Connecticut. 

Division No. 6. — Comprising the States of New York, Pennsyl- 
vania, West Virginia, New Jersey, Delaware, Maryland, District of 
Columbia, that portion of the State of Virginia which lies north of 
the James River excluding Allegheny County, and Porto Rico. 

Division No. 6. — Comprising^ the States of North Carolina, South 
Carolina, Georgia, Kentucky, Tennessee, Alabama, Florida, and that 
portion of the State of Virginia wliich lies south of the James River, 
including Allegheny Comity. 



88 

Division No. 7. — Comprising the States of Missouri, Texas, Okla- 
homa, Kansas, Arkansas, Louisiana, and Mississippi. 

Division No. 8. — Comprising the States of Wisconsin, Michigan, 
Illinois, Indiana and Ohio. 

Divisio7i No. 9. — Comprising the States of Minnesota, South Da- 
kota, North Dakota, Iowa and Nebraska. 

Division No. 10. — Comprising the States of Colorado, New Mexico, 
Wyoming, Montana, Utah, Arizona, and Idaho. 

Divisian No. 11. — Comprising the States of California, Nevada, 
Oregon, Washington, the territory of Alaska and all other parts 
of the United States not specifically included in other divisibns. 

Section 6. The above Divisions and any others which may subse- 
quently be formed within the Wholesale Monumental Granite In- 
dustry, shall be independent and self-governing in respect to all 
conditions and j^roblems relating exclusively to the particular divi- 
sion, subject to the approval of the Code Authority and the Ad- 
ministrator. Proposals with respect to matters affecting more than 
one Division may be initiated by any Division and shall be submitted 
for consideration to the Code Authority and its determination shall 
be binding upon said Division and all other Divisions affected 
thereby, subject to the approval of the Administrator. 

Section 7. A Control Committee shall be established by and for 
each division of the industry, consisting of not less than three, nor 
more than seven members who have assented in writing to this 
Code; provided, however, that no two members, or their alternates, 
shall be affiliated or associated with, or employed by, any one mem- 
ber of the Industry. 

Section 8. Each Control Committee shall have such authority and 
power as may be conferred upon ijt by the Code Authority in respect 
to administering this Code in the particular Division for which the 
Control Committee is set up. 

Section 9. The members of each Divisional Control Committee 
shall be elected in a fair and equitable manner by the members of 
the industry whose principal place of business is in that particular 
division, and who have assented in writing to this Code. The method 
of such election shall be subject to the approval of the Administrator. 
Notice of the time and place of all elections shall be sent by regis- 
tered mail, at least ten days in advance of any election, to all mem- 
bers of the industry within that particular Division who have as- 
sented to the Code. Voting at such election may be by person, by 
proxy or by letter ballot. A plurality of the number of votes cast 
shall be necessary for election. 

Seciton 10. If any Division does not elect a Control Committee 
as herein provided ; the members of the Code Authority shall have 
and may exercise all powers which tlie Control Committee would 
have in such Division. 

Section 11. Each trade or industrial association directly or in- 
directly participating in the selection or activities of the Code Au- 
thority shall (1) impose no inequitable restrictions on membership, 
and (2) submit to the Administrator true copies of its articles of 
association, by-laws, regulations, and any amendments when made 
thereto, together with such other information as to membership, 



89 

organization, and activities as the Administrator may deem neces- 
sary to effectuate the purposes of the Act. 

Section 12. In order that the Code Authority and the Control 
Committees shall at all times be truly representative of the Industry 
and in other respects comply with the provisions of the Act, the 
Administrator may prescribe such hearings as he may deem proper; 
and thereafter if he shall find that the Code Authority or any Con- 
trol Committee is not truly representative or does not in other re- 
spects comply with the provisions of the Act, may require an appro- 
priate modification in the method of selection of the Code Authority 
or such Control Committee. 

Section 13. Members of the Industry shall be entitled to par- 
ticipate in and share the benefits of the activities of the Code Au- 
thority and/or the Control Committees and to participate in the 
selection of the members thereof, as hereinbefore provided, by as- 
senting to and complying with the requirements of this Code and 
sustaining their reasonable share of the expenses of its administra- 
tion. The reasonable share of the expense of administration shall 
be determined by the Code Authority and/or the Control Commit- 
tees, on the basis of volume of business, and/or such other factors as 
may be deemed equitable to be taken into consideration, subject to 
review by the Administrator. 

Section 14. Nothing contained in this Code shall constitute the 
members of the Code Authority or the members of the Control Com- 
mittees partners for any purpose. Nor shall anj^ member of the Code 
Authority or any member of the Control Committees be liable in any 
manner to anyone for any act of any other member, officer, agent, or 
employee of the Code Authority or the Control Committees. Nor 
shall any member of the Code Authority or any member of the 
Control Committees, exercising reasonable diligence in the conduct 
of his duties hereunder, be liable to anyone for any action or omis- 
sion to act under this Code except for his own willful misfeasance 
or nonfeasance. 

Section 15. Powers and Duties. — 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 Industr}' with the provisions of 
the Act, under such rules and regulations as may be prescribed by 
the Administrator. 

(1)) To adopt by-laws and rules and regulations for its procedure 
and for the achiiinistration and enforcement of the provisions of the 
Code, under such rules and regulations as may be prescribed by the 
Administrator. 

(c) It shall elect its officers (who need not be members of Code 
Authority or employers in the industry) by a vote of its members, 
and may employ such personnel as it deems necessary. It may ap- 
point such committees consisting of members and/or non-members 
as it deems desirable, and may delegate to such committees such 
authority as it deems necessary. It shall have no authority or ac- 
tivity not related to the provisions of this Code. 

(d) The Code Authority shall in conjunction with the Divisional 
Control Committees cooperate with the Administrator in making 



90 

investigations as to the functioning and observance of any provisions 
of this Code, and in adjusting complaints thereunder on complaint 
by any person affected, and report its findings and recommendations 
to the Administrator. The Code Authority shall be empowered to 
take such action and establish such committees or agencies, national, 
regional or local, as may be necessar}' to secure compliance with this 
Code subject to rules and regulations as the Administrator may 
prescribe. 

(e) The Code Authority may study the trade-practice provisions 
incorporated in this Code, and the operation thereof, and may from 
time to time make such recommendations to the Administrator, as it 
considers desirable for modifications or addition thereto and as are 
approved by the Divisional Control Connnittees whose divisions are 
affected thereby, 

(f) The Code Authority may, at its discretion, present recom- 
mendations to the Administrator, based on conditions m the Industry 
as they may develop from time to time. Such recommendations shall 
be designed to facilitate the operation of the provisions of this Code 
and the policy of the National Industrial Recovery Act. 

(g) The Code Authority through the agency of the Divisional 
Control Committees and such additional agencies or associations as 
it may designate shall collect sworn or unsworn reports from mem- 
bers of the Industry in respect to hours of labor, wages, conditions 
of employment, number of employees, plant capacity, production 
orders, shipments, inventories, and any other matters pertinent to 
the administration of this Code as it may specify or as the Admin- 
istrator may require, in order that the President may be kept in- 
formed with respect to the observance and performance of the Code. 

(h) The Code Authority may, at its discretion, set up as agencies 
any or all of the following committees, or any other committees, if 
their existence will further effectuate the policies of the Act, viz ; 
Accounting 

Complaints and/or Grievances (except Labor) 
Fair Practices 
Statistical 
Such Committees may likewise be created within the Divisions of 
the Industry by any Divisional Control Committee at its discretion. 

(i) The Code Authority may recommend to the Administrator 
amendments and/or modifications to this Code, which shall become 
effective as part of this Code upon approval of the Administrator 
after such notice and hearing as he may prescribe. 

(j) Tlie Code Authority shall cause to be formulated an account- 
ing sj'stem and systems and methods of cost finding and/or estimat- 
ing 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. 

(k) To use such trade associations and other agencies as it deems 
propel- for the carrying out of any of its activities provided for 
nercin, ])rovided that nothing herein shall relieve tlie (\)de 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. 



91 

(1) To make recommendations to the Administrator for the co- 
ordination of tlie administration of this Code with such other codes, 
if any, as may be related to the Industry. 

(m) To secure from members and/or Divisions of the Industry an 
equitable and proportionate payment of the reasonable expenses of 
maintaining the Code Authority and its activities, under such rules 
and regulations as may be prescribed by the Administrator. 

(n) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the Industry in their relation 
Vv'ith each other or with other industries and to recommend to the 
Administrator measures for industrial planning, including stabiliza- 
tion of employment. 

(o) To establish classifications and standards of quality for mate- 
rials of the Industry, subject to the approval of the Administrator, 
in order to assist in making effective the reports from the Industry, 
and in eliminating unfair competition. 

(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 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 1G. If the Administrator shall determine that any action 
of the Code Authority or any agency thereof may be unfair or un- 
just or contrary to the public interest, the Administrator may require 
that such action be suspended to afford an opportunity for investi- 
gation of the merits of such action and further consideration by the 
Code Authority or agency pending the final action which shall not bo 
effective unless the Administrator approves or unless he shall fail 
to disapprove after thirty (30) days' notice to him of intention to 
proceed with such action in its original or modified form. 

Section 17. The Administrator may from time to time, upon re- 
quest, or ui)on his own initiative, issue such administrative interpre- 
tations of this Code as are necessary to effectuate its purposes, and 
such interjDretations shall become operative as a part of this Code, 
unless the Administrator shall otherwise specify. 

Section 18. In addition to the information required to be sub- 
mitted to the Code Authority, all or any of the persons subject to the 
code shall furnish such statistical information as the Administrator 
may deem necessary for the purposes recited in Section 3 (a) of said 
Act to such Federal and State agencies as the Administrator may 
designate; nor shall anything in the code relieve any person of any 
existing obligation to furnish reports to Government agencies. 

Article VII — Publicity of Prices, Terms, and Condiitons of Sale 

Section 1. Within thirty (30) days after the effective date of this 
Code each member of the industry shall publish and file with the 
Code Authority his prices, terms, and conditions of sale on all prod- 
ucts, with the prices, terms, and conditions of sale affecting each 
such class of customer in the territory to which such prices, terms, 
and conditions of sale apply. Coincident with such publication, 



92 

each member of the industry shall file with the Code Authority a 
sufficient number of complete schedules of such prices, terms and 
conditions of sale, which shall become effective immediately, and 
the Code Authority shall immediately distribute to all members of 
the industry and shall make available to all interested parties such 
schedules of prices, terms and conditions of sale. 

Section 2. In the event of any change by any member of the 
industry in any price, terms, or conditions of sale, he shall file full 
and complete copies of every change with the Code Authority; all 
such changes shall become effective immediately upon such filing 
unless and until the Code Authority shall designate periods within 
which any such changes shall become effective, subject to the approval 
of the Administrator, but in no case shall any such period exceed 
ten (10) days after the date of the filing of the change. Copies of 
all changes filed shall be immediately distributed by the Code Au- 
thority to the members of the Industry. Information on such pries 
changes shall be available to the trade to which it is applicable and 
to all other interested parties, on the effective date of such change, 
and each such member shall coincidentally file such information in the 
office designated by the Code Authority for immediate distribution 
by the Code Authority to the members of the Industry. 

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

Section 4. No member of the Industry shall sell, pay a rebate, or 
allow a deduction at any time to any person except in accordance 
with his prices, terms and conditions of sale then in effect and pub- 
lished in the manner described herein. Each member of the Indus- 
try shall have the right, individually, to publish new prices, terms 
and conditions of sale, from time to time, as herein provided. Each 
member of the Industry may grant a trade discount to the wholesale 
distributor. 

Article VIII — Trade Practice Rules 

Section 1. Deviation from, standards. — No member of the Indus- 
try shall deviate from the standards for materials of the Industry 
established by the Code Authority and approved by the Adminis- 
trator by any deceptive or false means or device with the effect of 
misleading or deceiving purchasers or prospective purchasers. 

Section 2. Selling helow (lost. — No member of the Industry shall 
sell below his own cost determined in accordance with Section 15 
(j) of Article VI; provided, however, that any member of the In- 
dustry may sell below his cost so determined to meet the competition 
of another member whose ])rices, filed in accordance with the pro- 
visions of Article VII, do not violate the Code. 



93 

Section 3. Unfair , Discrimination. — No member of the Industry 
shall either directly or indirectly discriminate in price between 
purchasers in the same class, provided that nothing herein contained 
shall prevent discrimination in price between purchasers of the same 
class on account of differences in the grade, quality, or quantity of 
the commodity sold; or discrimination in price that makes only due 
allowance for difference in the cost of selling or transportation; or 
discrimination in price in the same or different communities made 
in frood faith to meet competition. 

Section 4. Inaccurate Lahelling. — No member of the Industry 
shall falsely mark or brand products of the Industry, with the effect 
of misleading or deceiving purchasers with respect to the quality, 
quantity, grade, or substance of the goods purchased. Every member 
of the Industry who quarries granite to be used in public or private 
mausoleums, monuments, headstones, markers, or other forms of 
memorials, shall be required to register with the Code Authority the 
name and location of each and every quarry operated and the name 
or names of the owners thereof; and thereafter no registered pro- 
ducer, " quarrier ", " wholesale manufacturer " or " wholesale dis- 
tributor shall make any sales without clearly indicating the name 
and location of the quarry where the stone was produced which name 
shall appear both on the stone and on the invoice. When any such 
name or trade mark appears on the exposed surface of a stone, it shall 
not exceed in area two (2) square inches; provided, however, that 
nothing contained herein shall be construed to conflict in any way 
with the provisions of the trade mark or copyright laws. 

Section 5. Interference with Othefs Contracts. — No member of 
the industry shall willfully induce or attempt to induce the breach 
of existing contracts between competitors and their customers by 
any false or deceptive means whatsoever, or to interfere with or ob- 
struct the performance of any such contractual duties or services by 
any such means, with the purpose and effect of unduly hampering, 
injuring, or embarrassing competitors in their businesses. 

Section 6. Piracy of Trade Marks. — No member of the industry 
shall imitate the trade marks or trade names of competitors, having 
the tendency and the capacity to mislead or deceive purchasers or 
prospective purchasers. 

Section 7. Defamation. — No member of the industry shall defame 
competitors by falsely imputing to them dishonorable conduct, in- 
ability to perform contracts, questionable credit standing, or other 
false representations, or falsely disparage the grade or quality of 
their goods, with the tendency and capacity to mislead or deceive 
purchasers or prospective purchasers. 

Section 8. Conformity with Samples. — No member of the indus- 
try shall ship or deliver products which do not conform to the sam- 
ple submitted or representations made prior to securing the orders, 
with the effect and capacity of deceiving or misleading purchasers; 
but such changes may be made with the written consent of the 
purchaser. 

Section 9. Deception of Customers. — No member of the industry 
shall sell or offer for sale any product of the industry by any false 
means or device which has the tendency and capacity to mislead or 
deceive customers or prospective customers as to the quantity, qual- 
ity, substance, or size of such product. 



94 

Section 10. Misleading Advertising. —No member of the industry 
shall make, or cause or permit to be made or published, any false, 
untrue, or deceptive statement by way of advertisement or otherwise 
concerning the grade, 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 pro- 
spective purchasers. 

Section 11. Unfairly Securing Infoi'matio/i About Competitors. — 
No member of the industry shall secure information from competi- 
tors concerning their businesses . by false or misleading statements 
or representations or by false impersonations of one in authority. 

Section 12. Misrepresentation of Bids. — No member of the indus- 
try shall mislead or deceive any bidder as to the amounts and condi- 
tions of other bids or by any other false information, for the purpose 
of inducing such bidder to cut his own bid. 

Section 13. Requirenunt of Purchase or Lease. — No member of 
the industry shall require that the purchase or lease of any goods be 
prerequisite to the purchase or lease of any other goods. 

Section 14. Covvmerdal Bribery. — No member of the industry 
shall give, permit to be given, or directly offer to give, anything of 
value for the purpose of influencing or rewarding the action of any 
employee, agent, or representative of another in relation to the busi- 
ness of the employer of such employee, the principal of such agent 
or the represented party, without the knowledge of such employer, 
principal or party. 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. 

Section 15. Misrepresentation. — No member of the industry shall 
falsely represent any materials and/or services of the industry as 
complying with such standards as may be established by the Code 
Authority with the approval of the Administrator. 

Section 16. False Invoices. — No member of the industry shall 
withhold from, or insert in, any invoice statements which make the 
invoice a false record, wholly or in part, of the transaction repre- 
sented on the face thereof. 

Section 17. Units of Measure. — (a) The industry approves the 
superficial foot a^ the unit of measure in slabs, and further approves 
the custom under which the working size of a dimension slab shall 
be construed as allowing not over two (2) inches oversize, and on 
mill length slabs not over ten (10) percent allowance on length and 
not over two (2) inches on width. 

(b) The industry approves the cubic foot as the unit of measure 
for volume, and further approves the custom under which the work- 
ing size of said unit on rough dimension stock shall be construed as 
permitting an allowance of two (2) inches or less on any dimension. 

(c) Any deviation from the above methods of measurement by 
the seller shall constitute a violation of this Code. 

Section 18. Other Unfair Practices. — Nothing in this Code shall 
limit the effect of any adjudication by the Courts or holding by the 
Federal Trade Commission on complaint, finding, and order, that 
any practice, or method is unfair, providing that such adjudication 
or holding is not inconsistent with any purposes or provisions of 
the Act or of this Code. 



95 

Article IX — Foreign 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. 

Article X — Modification 

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

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

Article XI — Monopolies, Etc. 

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

Article XII — Price Increases 

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

Article XIII — Standard Terms — Cash Discounts and Credit 

Limits 

Section 1. Except during the months of January, February and 
March, when shipments may be made in advance of actual require- 
ments by mutual agreement, no member of the industry shall extend 
to a customer outside the industry more favorable terms of credit 
than seven (7) percent for cash with order, five (5) percent for cash 
within fifteen (15) days after date of shipment, net thirty (30) days, 
or trade acceptance in sixty (60) days; and in the months specifically 
mentioned above the billing-date of such shipments shall be not later 
than April 1. 

Section 2. No credit shall be extended knowingly to any custom- 
ers whose accounts with any member of the industry shall remain 
unpaid for a period of ninety (90) days after the terms of sale as 
specified in Section 1 hereof. This Section shall not be construed 
to permit the use of a blacklist or any equivalent device, such as a 
white list, and shall not be retroactive concerning accounts owed by 
customers or credit given prior to the effective date of this Code. 



96 

Article XIV — EF^ECTI^^ Date 

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

AppToved Code No. 449. 
Registry No. 1023-02. 

O 



Approved Code No. 450 

CODE OF FAIR COMPETITION 

FOR THE 

DOG FOOD INDUSTRY 

As Approved on May 31, 1934 



ORDER 



Approving Code of Fair Competition for the Dog Food Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of I'itle I of the National Industrial 
Recovery Act, approved June 16, 1938, for approval of a Code of 
Fair Competition for the Dog Food Industry, and hearings having 
been duly held thereon, and the annexed report on said Code con- 
taining findings with respect thereto having been duly made and 
direct<^d to the President: 

NOW. THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson. Administrat(u- for Industrial Recovery, 
pursuant to authority vested in me bv Executive Orders of the 
President, including Executive Order i^o. 6543-A, dated December 
30, 1933, do hereby incorporate by reference said annexed report 
and do find that said Code complies in all respects with the pertinent 
provisions and will promote the policy and purposes of said title 
of the Act; and do hereby order that said Code of Fair Competi- 
tion be and it is hereby approved : provided, that the provisions of 
Article IX, Section 1, paragraph (c), in so far as they prescribe 
a Avaiting period between the filing with the Code Authority and 
the effective date of revised schedules of prices, discounts, terms 
and conditions of sale be and they are hereby stayed pending my 
further order either within sixty (60) days from the effective date 
of the Code or after the completion of a study of open price associa- 
tions now being conducted by the National Recovery Administration. 

Hugh S. Johnson, 
Adtninistrator for Industi^ial Recovery. 

Approval recommended : 
A. W. Riley, 

Division A dministrator. 

Washington, D.C, 

May 31, 1931^. 

64181° 657-6 34 (07) 



REPOKT TO THE PRESIDENT 

The President, 

The White House. 
Sir : This is a report on the Hearing of the Cede of Fair Compe- 
tition for the Dog Food Industry. This hearing ^yas held in the 
Burlington Hotel, Washington, D.C., on February IG, 1934, in ac- 
cordance with provisions of the National Industrial Recovery Act. 



It is estimated that this Industry, made up of 105 plants, employs 
approximately 2,000 workers. 

This Industiy enjoyed a rapid growth during the past ten (10) 
years with sales for 1933 estimated in excess of $100,000,000. The 
Code contains a provision providing for standards of quality based 
upon biological values, which should tend to make for a uniformly 
higher grade dog food. 

PROVISIONS FOR HOURS AND WAGES 

The Code establishes a normal eight (8) hour day and forty (40) 
hour week for factory and clerical employees with the usual excep- 
tions for persons employed in a managerial, executive, and super- 
visory capacity, and outside salesmen. Route delivery salesmen 
regularly receiving thirty dollars ($30.00) per week averaged over 
a four (4) week period, are exempt from the hourly j^rovisions. 
Chauffeurs, truck and delivery men are allowed a forty-eight (48) 
hour week. Engineers and firemen are allowed a forty-four (44) 
hour week. There is also provided an exception for peak production 
limited to six (6) hours per week for a period not to exceed eight 
(8) weeks in a calendar year, providing that one and one-third times 
the noiinal rate be paid for all hours w^orked in excess of forty (40) 
hours per Aveek. The minimum wages provided for office employees 
are from sixteen dollars ($1G.00) to fourteen dollars ($14.00) based 
on population differential, office boys may be paid not less than two 
dollars ($2.00) below the above mentioned minima. The minimum 
wage provision for factory employees is thirty-five cents (35^) for 
female and forty cents (400) for male employees. 

CHILD LABOR 

The minimum age of employees will be sixteen (IG) years; except 
in hazardous occujjations, where the minimum will bo eighteen (18) 
years. 

KCX)NOMIC EFFECT OF THE CODE 

The forty (40) hour normal week, with additional pay for over- 
time, should tend to level employment peaks in this Industry and 

(08) 



99 

materially increase the number of workers. The hours provided 
for this Industry represent a decrease from forty-four (44) hours 
in 1933, to forty (40) hours in the Code, a reduction of nine (9) 
per cent from hours \Yorked just prior to P.R.A. This means an 
increase of ten (10) per cent in employment. From testimony 
offered by representatives of the Industry the average minimum wage 
for a sample of thirty (30) firms was thirty-four cents (34^) for 
males and twenty-five cents (25^) for females in 1933, prior to 
P.R.A., and about the same in 1929. The increased employment 
resulting from shortened hours will be a factor in increased payrolls 
for constant production. 
I find that : 

(a) Said Code is w^ell 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 ])roductive capacity of industries, by avoid- 
ing undue restriction of {)roduction (except as may be temporarily 
required), by increasing the consumption of industrial and agri- 
cultural products through increasing purchasing power, by reducing 
and relieving unemployment, by improving standards of labor, and 
by otherwise rehabilitating industry. 

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

(c) The Code a.s 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, 
,^nd 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 
and monopolistic practices. 

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

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

For the above reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
Mat 31, 1934. 



CODE OF FAIR COMPETITION FOR THE DOG FOOD 
INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recover}^ Act, approved June 16, 1933, the following provisions are 
established as a Code of Fair Competition for the Dog Food Indus- 
try, and shall he the standards of fair competition for such Industry 
and shall be binding upon every member thereof. 

Article II — Definitions 

Section 1. As used in this Code — 

(a) The term "President" means the President of the United 
States. 

(b) The term "Administrator" means the Administrator for 
Industrial Recovery. 

(c) The term "Act " means Title I of the National Industrial 
Recovery Act, approved June 16, 1933. 

(d) The term " State " means any State or Territory and the 
District of Columbia. 

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

(f ) The term "Association " means the National Dog Food Manu- 
facturers' Association. 

(g) The term " export trade " means any sale for delivery outside 
the continental United States. 

(h) The term " Dog Food Industry " and the term " industry " 
mean the manufacturing, packing and importing of dog food and 
sale thereof by the manufacturer, packer, or importer and sucli 
related branches or subdivisions thereof as may from tiine to time 
be included under the provisions of this Code by the President, after 
such notice and liearing as he may prescribe. 

(i) The term " Dog Food " means any food manufactured and 
intended primarily as food for dogs. 

(j) The term "member of the industry " includes any individual, 
partnership, association, corporation, or other form of enterprise 
engaged in the industry, either as an emplover or on his or its own 
behalf. 

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

(1) The term "employer " includes any person by whom any such 
employee is compensated or employed. 

(m) The term " watchman " inchidos only employees, at least 
ninety per cent (90%) of wliose working hours are devoted to watch- 
ing and guarding tlie premises and property of any establishment in 
the industry. 

(100) 



101 

(n) The term " outside salesman " includes any salesman, at least 
ninety per cent (90%) of whose working hours are devoted to selling 
outside of the establishment and who does not deliver merchandise. 

(o) The term " route salesman " includes any salesman who de- 
livers that which he sells at the time of sale. 

(p) The term "buyer" means any buyer for commercial pur- 
poses, and not for the use in feeding of his own dogs or other 
animals. 

(q) Population 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 more than eight (8) hours in 
any day, with the following exceptions. The provisions of this Sec- 
tion shall not apply to : 

(a) Persons employed in a managerial, supervisory, executive, or 
technical capacity, who regularly receive not less than thirtj^-five 
dollars ($35.00) per week. 

(b) Outside salesmen. 

(c) Eoute salesmen, provided that they regularly receive not less 
than thirty dollars ($30.00) per week averaged over a four (4) 
week period, 

(d) Watchmen, provided that no watchman shall be permitted to 
work in excess of fifty-six (56) hours in any week. 

(e) Chauffeurs, truck drivers and delivery men, provided that no 
chauffeur, truck driver, or delivery man shall be permitted to work 
in excess of forty-eight (48) hours in any week. 

(f ) Engineers and firemen, provided that no engineer or fireman 
shall be permitted to work in excess of forty-four (44) hours in any 
week or more than nine (9) hours in any one day. 

Section 2. In cases of peak production, continuous manufacturing 
process necessary because it involves a perishable product, inventory 
period, financial closing period, and other unusual conditions beyond 
the control of the employer, employees may work in excess of the 
normal number of working hours per day or per week prescribed by 
this Code for the class of work performed by such employees, but 
during not to exceed an aggregate of eight (8) weeks in the calendar 
year, as to canned dog food, and four (4) weeks as to dry dog food. 
Such overtime shall not exceed six (6) hours in any one week except 
in cases of emergency maintenance and emergency repair work in- 
volving breakdowns or protection of life and property', and shall be 
compensat-ed by at least one and one-third times the normal rate. 
All cases of overtime work in excess of tlie maximum hours pre- 
scribed by this Code shall be reported monthly to the Code Author- 
ity. Office workers receiving thirty-five dollars ($35.00) per week, 
or more, are not subject to overtime payment. 

Section 3. No employee, except persons employed in a managerial, 
supervisory, executive or technical capacity, who receive regularly 
not less than thirty-five dollars ($35.00) per week, shall be permitted 
to work more than six (6) days in any seven (Y) day period. 

Seciton 4. No employer sliall permit any employee to work for 
any time which, when totaled with that already performed for an- 
other employer, exceeds the maximum permitted by this Code. 



Article IV — Wages 

Section 1. No clerical, accounting, or other office employee shall 
be paid less than at the rat« of : 

Sixteen dollars ($1G.00) per week in any city of over 500,000 popu- 
lation or in the immediate trade area thereof. 

Fifteen dollars ($15.00) per week in any city between 250,000 and 
500,000 population or in the immediate trade area thereof. 

Fourteen dollars ($14.00) per week in any city or town of less 
than 250,000 population. However, office boys and messengers may 
be employed at a rate of not less than two dollars ($2.00) below the 
minimum wage otherwise applicable under this Code, provided that 
not more than ten per cent (10%) of the total number of office 
employees in any establishment in the industry shall be so classified, 
except that any establishment may employ at least one office boy or 
messenger. 

Section 2. No watchman shall be paid less than at the rate of 
eighteen dollars ($18.00) per week. 

Section 3. No male employee other than those covered by Sec- 
tions 1 and 2 of this Article shall be paid less than at the rate of 
forty cents (400) per hour, and no female employee other than 
those covered by Sections 1 and 2 of this Article shall be paid less 
than at the rate of thirty-five cents (350) per hour. 

Section 4. Tiiis 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. Female employees performing substantially the same 
work as male employees shall receive the same rate of pay as male 
employees, except that in cases where male employees do work cus- 
tomarily performed by women, only during hours when v»^omen are 
proliibited by law from working, this Section shall not apply. 

Section 6. At least one and one-third times the normal rate shall 
be paid for all time worked by employees (except by persons em- 
ployed in a managerial, supervisory, executive or technical capacity, 
who regularly receive not less than thirty-five dollars ($35.00) per 
week and outside salesman, and employees engaged in the handling 
of livestocJv) on Sunday and any national holiday. 

Section 7. A person whoso earning capacity is limited because of 
age or physical or mental handicaj) may be employed on light work 
at a wage below the minimum established by this Code, if the em- 
ployer obtains from the authority designated by the United States 
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. 

Section 8. No employee whose normal full time weekly hours, 
after tlu) approval of this Co<]e, shall be sixteen and two-thirds per- 
cent (1G%%), or less, below his noi'inal full time weekly hours for 
the four (4) nionths ending May 1, 1933, shall have his full time 
weekly earnings reduced below the average weekly earnings of such 
employee during such four (4) months' i)eriod. In case the reduc- 
tion in hours, as so measured, is more than sixteen and two-thirds 
I>ercent (1G%%), employers shall make an equitable readjustment of 



103 

hourly wage rates upwards, provided that in each such case hourly 
wage rates shall be increas&3, by at least twenty percent (20%). 
In no case shall hourly wage-rates be reduced. 

Section 9. After the effective date of this Code, wages shall be 
exempt from any fines; and from charges, or deductions, except 
charges and deductions for employees' voluntary contribution for 
jxinsion, insurance, or benefit plans, and charges or deductions re- 
quired by law, and agi-eements of hire siiall provide that the em- 
ployer shall not withhold wages except upon service of legal process 
or other papers lavvfully requiring such withholding. Deductions 
for other purposes not heretofore stated may be made only v/hen the 
contract is in writing and is kept on file by the employer open to 
the inspection of Government representatives. 

Section 10. Employers shall make payment of all wages due in 
lawful currency or by negotiable check pa3'able on demand. Agree- 
ments of hire shall provide for payment of wages at least as often 
as at the end of each two (2) weeks' i^eriod, ancl salaries at least as 
often as at the end of each month's period. 

Article V — General Labor Pko\t:sions 

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

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

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

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

(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 by employees or change the method of pay- 
ment of employees' compensation 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. 



104 

Section 5. 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 6. No provision of this Code shall supersede any Federal 
or State law which imposes on employers more stringent require- 
ments as to age of employees, wages, hours of labor, or as to safety, 
health, sanitary, or general working conditions, or insurance, or fire 
protection, than are imposed by this Code. 

Section 7. All employers shall post complete copies of the por- 
tions of this Code relating to wages, hours and general labor pro 
visions in conspicuous places accessible to employees. 

Section 8. The Code Authority may, from time to time, present 
to the Administrator recommendations of the industry which will 
tend to effectuate the operation of and compliance with the labor 
provisions of this Code. 

Article VI — Standard Net Weights for Canned Dog Food 

Section 1. The following shall be tlie standard net weights for 
canned dog food: eight (8) ounces, one (1) pound, two and one 
half (214) pounds, and seven (7) pounds. 

Section 2. All stock cans and labels on hand on the date when 
this Code becomes effective shall be exempted from this Article. 

Section 3. No member of the industry shall sell canned dog food 
cxcei^t when packed in accordance with this Article. 

Article VII — Definiitons and Standards of Identity 

Section 1. The Code Authority shall establish reasonable defini- 
tions and reasonable standards of identity and biological value for 
canned dog food, necessary to prevent deception, fraud, and unfair 
competition in the sale of canned dog food. Within ninety (90) days 
after the date wheTi this Code becomes effective the Code Authority 
shall present to the Administrator recommended standards and a 
plan for their enforcement. 

Section 2. Tlie Code Authority shall establish such definitions and 
standards in pursuance of such hearing procedure as may be pre- 
scribed by the Administrator, and they shall be subject to approval 
by the Administrator, and effective on a date approved by the 
Administrator. 

Section 3. Each member of the industry shall comply with the 
definitions and standards of identity established under this Article. 

Aritcle VIII — Lareling Kequirements 

Section 1. The Code Authority shall establish subject to approval 
by the Administrator, reasonable labeling requirements for canned 
dog food necessary to prevent deception, fraud and unfair competi- 
tion in the sale of canned dog food. Within ninety (1)0) days after 
the date when this Code Ijecomcs eft'ectivo the Code Authority shall 
j)rcsent to the Administrator recommendations for these labeling 
requirenicnts and a i)lan for their enforcement. 

Si-xnoN 2. The Code Authority shall establish such definitions and 
standards in pursuance of such heai-ing procedure as may be pre- 



105 

scribed by the Administrator, and they shall be subject to approval 
by the Administrator, and effective on a date approved by the 
Administrator. 

SECTioisr 3. Each member of the industry shall comply vritli the 
labeling requirements establislied under this Article. 

Article IX — Unfair Methods of Competition 

Section 1. Price Concessions. — (a) No member of the industry 
shall sell dog food to buyers except upon the basis of an open price 
which is strictly adhered to, while effective. The term " open price " 
as used in this Section means a price list (1) which is published for 
the equal information of ail buyers and members of the industry, 
and (2) which declares all the members' prevailing prices and terms 
of sale for dog food. 

(b) No member of the industry shall make any direct or indirect 
price concession. " Direct or indirect price concession "' as used in 
this Section, means any variation by a member of the industry from 
his open price, whether by a rebate, allowance, payment, free deal, 
gift, or by any other means whatsoever. 

(c) Within ten (10) days after the effective date of this Code each 
member of the industry shall file his open price for dog food with 
the Code Authority. Sucli open price shall set forth a complete 
schedule of such member's prices for all dog food that he sells, to- 
gether with all discounts and full terms and conditions of sale of 
any kind based upon such prices. Thereafter each member of the 
industry shall inunediately notify the Code Authority of any change 
in such open price or of any new open price, by telegram or regis- 
tered mail, and such changed prices shall not become effective until 
same have been on file with the Code Authority for a period of 
five (5) days. The Code Authority shall immediately inform all 
members of the industry of each open price or change therein filed 
with it. The Code Authority shall inform any buyer, upon request 
therefor, of any open price or change therein filed with it.^ 

Section 2. Price IJiscrhnination. — No member of the industry 
shall discriminate in price between buyers. The term " discriminate 
in price ", as used in this Section, means directly or indirectly charg- 
ing a different price to buyers of pro<lucts of the same quantity, 
grade and quality, who are loca<:ed in the same competitive market 
and who are members of the same buyer class. 

Section 3. Unearned Service Payment. — No member of the in- 
dustry shall pay a buyer for a special advertising or other distribur 
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 payment is reasonable and not excessive in amount 
and (c) unless such contract is separate and distinct from any sales 
contract and such payment is separate and distinct from any sales 
price and is not designed or used to reduce a sales price; and (d) 
unless a copy of each such contract is retained on file for a period 
of one year. The Administrator or the Code Authority may require 
a member of the industry to report any such contract by him made. 

> See paragraph 2 of order approving this Code. 



106 

Section 4. Desttvictive Price Gutting. — (a) No member of the 
industry shall engage in destructive price cutting. The term " de- 
structive price cutting", as used in this Section, means (1) the 
offer or sale of dog food by any member below his individual cost; 
or (2) any price cutting purposed or effective unduly to suppress 
competition or to create a monopoly; or (3) the quotation of a 
fictitious price or the invoicing of a false price; or (4) the making 
of any price statement or price representation which is false or 
fraudulent. 

(b) This Section shall not be construed or api^lied to prevent any 
sale below cost in order to meet the price competition of a member 
in the same competitive market whose price is not in violation of 
this Code or a necessitous sale to dispose of distress stock, which sale 
is immediately reported to the Code Authority. 

Section 6. Quantity Price Abt/^se. — No member of the industry 
shall offer or make a quantity price unless it is based upon and rea- 
sonably measured by a substantial difference in the quantity sold 
and delivered, and unless it is equally available to all buyers of the 
same quantity; and unless it is set out in the open price schedule. 

Section 6. Unearned Discount for Gash. — No member of the in- 
dustry shall allow a discount for cash which is not earned by pay- 
ment in accordance with the cash discount t«rms specified in his 
open price schedule. 

Section 7. G oonpulsory Purchase. — No member of the industry 
shall compel a bu3rer to purchase any article as a prerequisite to 
the purchase of any other article. 

Section 8. Unfair Substitution. — No member of the industry shall 
substitute without due notice and consent of a buyer another product 
for that ordered from him. 

Section 9, Prize or PremivAn Abuse. — No member of the industry 
shall offer any prize or premium or other gift in pursuance of a 
plan involving lottery or fraud or deception. 

Section 10. Free DeaU. — No member of the industry shall offer 
or give a free deal to a buyer. The term " free deal ", as used in this 
Section, means a free deal of any kind, except samples so labeled 
or marked, or dog food presented to any exhibitor at a dog or animal 
show. 

Section 11. Gommerdol Bribemj. — 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- 
Dess of the employer of such employee, the principal of such agent 
or the represented party, without i\\^ knowledge of such employer, 
principal, or party. 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 12. Inaccurate Advertising. — No member of the industry 
shall publi,sh 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, qual- 
ity, quantity, origin, size, substance, character, nature, material con- 



107 

tent or prepcaration) or credit terms, valuer, policies, services, or the 
nature or form of the biisines3 conducted. 

Section 13. Inaccurate Labeling. — No member of tlie industry 
shall brand or mark or pack any goods in an}^ manner which is in- 
tended to or does deceive or mislead purchasers with respect to the 
brand, grade, quality, origin, quantity, size, substance, character, 
nature, finish, material content or preparation of such goods. 

Section 14. Deceptive Contain-ers. — No member of the industry 
shall use a deceptively shaped or slack filled container or give short 
weight or measure or count. 

Section 15. Unfair Interference vnth CompetUor\s Business. — No 
member of the industry shall unfairl}'- interfere with a competitor's 
business, by uttering false statements about his business or by un- 
fairly disparaging his business or product or by inducing a breach 
of his contracts. 

Section 16. Coord in/itioii with Other Codes. — The industry recog- 
nizes the desirability of uniform trade practice provisions for all 
food and grocery manufacturing codes ; and in the event the Admin- 
istrator recommends uniform trade practice provisions designed to 
accomplish this purpose, the industry pledges itself to cooperate 
with him in securing the addition of such acceptable provisions to 
this Code, or in securing the amendment of any acceptable trade 
practice provisions now in this Code Avhich are different from those 
recommended by him.. 

Article X — Organization, Powers, and Duties of the Code 
Authority 

Section 1. There shall forthwith be constituted a Code Authority 
of seven (7) members, truly representative of the industry, of which 
five (5) members shall be selected by the members of the Associa- 
tion and two (2) members shall be appointed by the Administrator 
to represent those members of the industry not members of the Asso- 
ciation. Each member of the Code Authority shall serve for one 
year, unless within that time he submits his resignation in writing to 
the Code Authority. In case of vacancy by death or resignation of 
members the vacancy shall be filled by selection in the same manner 
as the original member whose vacancy is being filled was selected. 

In addition to membership of the Code Authority as above pro- 
vided, there may be one to three members, witliout vote, appointed by 
the Administrator, for such teems as he may designate. Within 
ninety (90) days after the effective date of this Code, the Code Au- 
thority shall submit for the approval of the Administrator a plan 
for the election of the Code Authority for years following the first. 
Upon approval by the Administrator this method of election shall 
become effective and shall be follovv'ed in all the elections after the 
one hereinbefore provided, and an election may be required there- 
under within the first year if the Administrator shall so require. 

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 membership, 
and (2) submit to the Administrator true copies of its Articles of 
association, bylaws, regulations, and any amendments when made 
thereto, together with such other information as to membership, 



108 

organization, and activities as the Administrator may deem neces- 
sary 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 tlie 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 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 nonfeasance. 

Section 5. Powers and Duties. — Subject to such rules and regula- 
tions as may be issued by the Administrator, the Code Authority 
shall have the following powers and duties, in addition to those au- 
thorized by other provisions of this 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. 

(c) The Code Authority shall cause to be formulated an account- 
ing system defining the elements of cost and the methods of cost 
finding and/or estimating, suitable for the industi'y and capable of 
use b)^ all members of the industry, and shall inform them thereof. 
Upon the approval of such system by the Administrator each mem- 
ber of the industry shall use the principles thereof to determine the 
cost of liis dog food under this Code. 

(d) 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 noth- 
ing in this Code shall relieve any member of the industry of any 
existing obligations to furnish reports to any Government agency. 
No indivi(huil 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, 

(e) To elect a representative to serve on any conference or ad- 
visory committee which may be establislied by the Administrator for 
the entire gi'ocer}^ manufacturing industry, and to consider recom- 
mendations formulated by such committee, and approved by the 
Administrator, for the modification of (liis Code. 

(f) (1) It being found uccessary to su{)|)()rt the Administration 
of this C(jd(', in order to effe('tuate the policy of the Act and to 
maintain the slandfir'ds of fail- competition established hereunder, 
the Code Authority is authorized: f 



109 

(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 
necessaiy : 

1. An itemized budget of its estimated exjoenses for the 

foregoing purposes, and 

2. An equitable basis upon which the funds necessai-y to 

support such budget sliall 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 sot 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 equi- 
table 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.K.A. insignia. 

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

(h) To recommend to the Administrator further fair trade prac- 
tice provisions to govern members of the industry in their relations 
with other industries and to recommend to the Administrator meas- 
ures for industrial planning, including stabilization of emplo3'ment. 
Nothing in the foregoing sliall iiiait the right of any member of 
the industry directly to recommend any addition to or modifica- 
tion of this Code. 

(i) To investigate, subject to such rules and regulations as may be 
established by the Administrator, alleged violations of this Code, 
and to present to the Administrator reports of its investigations of 
such alleged violations. Nothing in the foregoing shall limit the 
right of any member of the industry directly to appeal to the Ad- 
ministrator f .-.an any action of the Code Authority. 

(j) To appoint such executives, to engage such as.sistants, and to 
organize such committees as may be appropriate to administer this 
Code. The Administrator may appoint a representative to attend 
the meetings of sucli committees without vote and without expense 
to the industry. 

(k) To investigate and inform the President as to the effect of 
importation of competitive products into the United States. 

(1) Standards for safety and health shall be submitted by the 
Code Authority to the Administrator within six (6) months after 
the effective date of the Code. 

Section 6. If the Administrator shall determine that any action 
of the Code Authority or any agency thereof may be unfair or 



110 

unjust or contrary to the public interests, 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 XI — Exports 

Section 1. This Code shall not apply to export trade or to sales 
or shipments for export trade, except that the employment pro- 
visions, wage, hour and general labor conditions of this Code shall 
apply to the domestic manufacture of dog food for export. 

Article XII — Modifications 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with the 
provisions of 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 to the Ad- 
ministrator and such notice and hearing as he shall specify, and to 
become effective on approval. 

Article XIII — Monopolies, Etc. 

Section 1. No provisions of this Code shall be so applied to per- 
mit monopolies or monopolistic practices, or to eliminate, oppress, or 
discriminate against small enterprises. 

Article XIV — Interpretation 

Section 1. The Administrator or the Code Authority, with the ap- 
proval of the Administrator, may from time to time issue such ad- 
ministrative interpretations of the provisions of this Code as may 
be necessary or advisable for the effectuation or clarification of its 
purposes. 

Article XV 

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

Article XVI — Effective Daiti 

Section 1. Tliis Code shall become effective on the second Monday 
aft*jr its approval. 

Approved CfxU' No. 4r,0, 
Rcyistry No. 1(>4.S (JO. 

O 



Approved Code No. 451 
CODE OF FAIR COMPETITION 

FOR THE 

CANDLEWICK BEDSPREAD INDUSTRY 

As Approved on June 1, 1934 



ORDER 

Code of Fair Competitton for the Candlewick Bedspread Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Candle\Yick Bedspread Industry, and hear- 
ings having been dul}' 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 bv Executive Orders of the Presi- 
dent, including Executive Order N^o. 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 resj^ects with 
the pertinent provisions and will promote the policy and purposes 
of said Title of said Act; and do hereby order that said Code of 
Fair Competition be and it is hereby approved; 

Provided that, upon application of the Candlewick Bedspread 
Association, the provisions of Article IV, Section 2 of said Code, 
in so far as they provide for a compensation of eight cents (8^) per 
ounce of yarn used for work on the 60/60 spreads and ten cents (10^) 
per ounce of yarn used for w^ork on the 64/64 spreads, be and they 
are hereby stayed until July 16, 1934, on condition that m the in- 
terim members of the Industry pay to home workers not less than 
six and one-fourth cents (61,4^) per ounce of yarn used for work 
on the 60/60 spreads and not less than eight cents (8^) per ounce 
of yarn used on the 64/64 spreads, pending my further order; 

And provided further that the approval of Article IV, Section 2 
and Article V, Section 2 is limit-ed to such period as may be neces- 
sary for a commission appointed by me upon recommendation of 
the Division of Research and Planning and the Labor and Industrial 
Advisory Boards to investigate the economic desirability of said 

64502° 657-13 34 (111) 



112 

provision. It is proposed that such commission be immediately 
appointed by the Administrator and directed to report with all rea- 
sonable expedition and if possible by Julj^ 16, 1934. When siicli 
commission lias reported, the Administrator will hold a public hear- 
ing on the reports and findings of the commission giving interested 
parties reasonable notice and opportunity to be heard. On the 
basis of such report and of the facts brought out at such public 
hearing, it is contemplated that these provisions and any other 
provisions in the Code, may be modified so as to meet existing 
conditions. 

Hugh S. Johnson, 
AdTnirvistrator for Industrial Recovery. 
Approval recommended : 

H. O. ICiNG, 

Division AdmiJiistrator. 
Washington, D.C, 

June 1, 1934. 



EEPORT TO THE PRESIDENT 

The President, 

The White Bouse. 

Sir : This is a report on the Hearing on the Code of Fair Com- 
petition for the Candlewick Bedspread Industiy, conducted in Room 
2062, Department of Commerce Building, Washington, D.C., Mon- 
day, April 16, 1934. 

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

The Code which is attached was presented by duly qualified and 
authorized representatives of the Industry, claiming to represent 
ninety -two (92%) per cent of the capacity of the Industry. 

GENERAL. CHARACTERISTICS OF THE INDUSTRY 

This Industry is a traditional one in the homes of the mountain 
people of the Blue Ridge, but has been developed commercially only 
in the last twenty yeai*s. In its commercial phase this Industry is 
concentrated almost entirely in Whitfield, Murray, Jordan and Bar- 
tow counties in North Georgia with its center at Dalton. Outside 
of the four counties there is one plant in South Carolina, one in 
Tennessee and one in Alabama. There are twenty-five (25) con- 
cerns in the Industry. 

The products of the Industi^iy' are hand-tufted bed coverings, dra- 
peries, piece goods, pillow tops, bath mats and related products. 

There are from one hundred and fifty (150) to two hundred (200) 
persons normally employed inside the plants of the Industry, and in 
addition it is estimated that from twelve thousand (12,000) to 
fifteen thousand (15,000) home workers are engaged in the tufting 
of the products of the Industry. The value of the products of the 
Industry was approximately $1,600,000.00 for 1933. 

PROVISIONS OF THE CODE 

The minimum wage for employees is twelve ($12.00) dollars per 
week, except for cleaners and learners for which the minimum is 
nine ($9.00) dollars per week. Learners are limited to ten per cent 
(10%) of the total number of employees. With the exception of a 
few classes of employees the maximum number of hours permitted* 
is forty (40) hours per week. 

The rate of pay for the home workers is based on eight cents (8^) 
per ounce for twelve (12) strand yam worked on 60/60 spreads, or 
under, and ten cents (10^) per ounce for twelve (12) strand yam 
worked on spreads heavier than 60/60. The rate per hour pro- 
duced by the Schedule of rates is difficult to determine accurately 

(113) 



114 

in view of the conditions under which the home work is done. How- 
ever, evidence produced by the Manufacturers would seem to "indi- 
cate a yield of from fifteen cents (15^) to twenty cents (20^) per 
hour from the above rates — which is from three to four times the 
rate in effect a year ago. 

The above rates are to be stayed until July 16, 1934, at which 
time they become effective — subject to a review and Public Hearing 
on the facts brought out at that time or shortly thereafter by a 
committee established under the Code to investigate labor and com- 
petitive conditions in the Industry. 

The rates which will be in effect during the period to July 16th 
are based on six and one-quarter cents (6l^0) per ounce for 60/60 
spreads and eight cents (80) per ounce for spreads heavier than 60/60. 
These rates compare with the rates of four cents (44) and six cents 
(60) per ounce respectively in effect before the C(M.e and about two 
and one-half cents (2%0) per ounce in effect a year ago. 

While fifteen cents (150) to twenty cents (200) per hour appears 
to be low, when compared to the minimum of thirty cents (300) per 
hour established in other textile codes, it is approximately three (3) 
to four (4) times the amount received in 1932 as stated. As the 
work is done in the home of the worker as a part time job and is 
not supervised by the manufacturer, it is believed that the rate is 
justified pending the further determination of facts by the investi- 
gating committee. 

FINDINGS 

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

I find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and will pro- 
vide for the general welfare by promoting the organization of in- 
dustry for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment imder adequate governmental sanctions and supervisions, 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 
tejnporarily rwjuired), by increasing the consumption of industrial 
and a<2:ricultural 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 fifty thousand 
(50,000) employees; and is not classified by me as a major industry. 

(c) The Code as ai)pi-oved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Sul)section (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of »Scction 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. 



115 

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

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

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

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

Hugh S. Johnson', 

Administrator, 

June 1, 1934. 



CODE OF FAIR COMPETITION FOR THE CANDLEWICK 
BEDSPREAD INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, this Code is established as a code of fair competi- 
tion for the Candlewick Bedspread Industry and its provisions shall 
be the standards of fair competition for such Industry and shall be 
binding upon every member thereof. 

A-RTiCLE II — Definitions 

St:ction 1. The term " Candlcwick Bedspread Industry " as used 
herein, includes the converting of sheetings and j'arn into hand- 
tufted bed coverings, draperies, piece goods, pillow tops, bath mats 
and related products, together with such punch-work tufting as is 
incidental thereto, and the primary distribution of such products. 

Section 2. The term " member of the Industry " as used herein 
includes, but without limitation, any individual, partnership, associa- 
tion, corporation or other form of enterprise, engaged in the Industry 
as above defined, either as an employer or on his or its own behalf. 

Section 3. The term " Association " as used herein means the 
Candlewick Bedspread Association of Dalton, Georgia. 

Section 4. The term " employees " as used herein means only 
those employees working in the offices, warehouses, or establishments 
of members of the Industry. 

Section 5. The term " employer " as used herein means any mem- 
ber of the Industry by whom employees are emploj^ed or compen- 
sated. 

Section 6. The term " home workers " as used herein means all 
persons engaged in the process of making hand-tufted bed cover- 
ings and all other hand-tufted products of the Industry from yarns, 
sheeting, and other materials supplied them by members of the In- 
dustry, which persons work on their own time and in their own liomes 
or places away from the establishments of members of the Industry. 

Section 7. The term " hauler " as used herein means a person who 
distributes yarn, sheetings, and other materials from members of the 
Industry to home workers. 

Section 8. The term " cleaners " as used herein, shall include only 
those who perform janitorial services and clean machines, or not 
as sweepers and whose labor is confined to such taslvs. 

Section 0. Tlie terms " President ", "Act ", and "Administrator " 
as used horein shall mean, resj)ectively, the President of the United 
States, Title I of the National Industrial Recovery Act, and the 
Administrator for Industrial Recovery. 

Section 10. The term " Code Authority " .is used herein means 
the Candlewick Bedspread Industn' Code Authority set up in Article 
VI of this Code. 

(110) 



117 

Article III — Hoitrs 

No employees in this Indiistn^ shall be peniiitted to work in excess 
of forty (40) hours per week or eight (8) hours per day with the 
f olloT/ing exemptions : 

(a) Executives, office employees, and members of the supervisory 
staff who receive $35.00 per week or more, and outside salesmen and 
haulers. 

(b) Office emploj'ees who receive less than $35.00 per week may 
work in excess of forty (40) hours per week provided such excess 
work shall not average more than forty (40) hours per week over a 
five weeks' period; but in no event shall any office employee work 
more than forty-eight (48) liours per week during such period. 

(c) Watchmen who shall not be employed in excess of fifty-six 
(56) hours per week. 

(d) No 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), ex- 
ceeds the maximum permitted herein. 

Article IV — Wages 

Section 1. No employee shall be paid at less than the rate of $12.00 
per week except cleanere and learners, who shall not be paid less 
than at the rate of $9.00 per week. Tlie period of learning shall 
be limited to the first two months of the training. In this Industry 
any time spent as a learner for another employer shall be credited 
to the two months' period of learning herein prescribed. At no time 
shall the number of learners em])loyed by any member of the Industry 
be in excess of ten per cent (10%) of the total number of em.ployees 
employed by such member of the Industry. 

Section 2. The minimum scale of compensation for all Candle- 
wick work done by home workers shall be : 

(a) 8^ per ounce for 12 strand unfinished yarn worked on all light 
weight spreads 60/60 or under, with 25^ as minimum for any pat- 
tern. 100 ])er ounce for 12 strand unfinished yarn worked o» all 
heavy weight spreads over 60/60, with 300 as minimum for any pat- 
tern. For each additional color or tone above three, 50 shall be 
added on each spread. The price per ounce shall be doubled on all 
patterns where manufacturer or the pattern requires each stitch to 
be pulled up and cut separately and on all French knots. 12 strand 
yarn shall be the standard and any yarn with fewer strands shall be 
paid for as if its weight equaled the 12 strand. 

(b) For hemming spreads workers shall receive at least 10 per 
spread. 

(c) For laying off patterns from forms each worker shall receive 
at least 20 per spread. 

(d) For fringing the minimum scale of compensation shall be 250 
for single knot with 50 additional for each tie or knot.* 

Section 3. No employee shall receive for forty (40) hours of labor 
less compensation than he received or would have received as of 
August 1, 1933, for not exceeding fifty-two (52) hours per week, 

1 See paragraiJhs 3 and 4 of order approving this Code. 



118 

and the wage differentials for all operations shall be equitably re- 
adjusted. 

Within 30 days after the effective date, every member of the In- 
dustry shall report to the Code Authority action taken by him with 
respect to adjustment of wages above the minimum. 

Section 4. A person whose earning capacity is limited because of 
age or physical or mental handicap may be employed on light work 
at a wage below the minimum established by this Code if the em- 
ployer obtains from the State authority designated by the United 
States Department of Labor a certificate authorizing his employ- 
ment at such wages and for such hours as shall be stated in the 
certificate. Each employer shall file monthly with the Code Au- 
thority a list of all such persons employed by him, showing the 
wages paid to, and the maximum hours of work for such employee. 

Article V — General Labor Provisions 

Section 1. On and after the effective date of this code, no mem- 
ber of the Industry shall employ any minor under the age of 16 
years, nor anj^one under eighteen (18) years of age at operations 
nazardous in nature or detrimental to health. The Code Authority 
shall submit to the Administrator before August 1, 1934, a list of 
Buch occupations which, upon his approval, shall be deemed hazard- 
ous in nature or detrimental to health within the meaning of this 
section. In any state an employer shall he deemed to have complied 
with the age provision, if he shall have on file a certificate or permit 
duly issued by the authority in such state empowered to issue em- 
ployment or any certificates or permits, showing that the employee 
js of the required age. 

Section 2. No member of the Industry shall distribute material 
through haulers unless such haulers contract in writing not to accept 
from any home workers a compensation aggregating more than 15% 
of the amount received by such home worker lor each finished prod- 
uct and in no event to accept a compensation of more than thirty 
cents (30^) per spread. Such contracts shall further provide that 
haulers when delivering raw materials to workers should deliver 
them with a slip provided by the member of the Industry and printed 
with his name thereon, specifying the number of ounces of yarn 
required for each pattern and the amount of compensation to be 
paid for each pattern.^ 

Section 3. In compliance with Section 7 (a) of the Act it is 
provided : 

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

(b) That no employee and no one seeking employment shall be 
required as a condition of employment to join any company union 

'See ptiragi'iiiib 4 of order approving tlii.s Code. 



119 

or to refrain from joining, organizing, or assisting a labor organiza- 
tion of his own choosing, and 

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

Section 4. All employers shall post and keep posted copies of this 
Code, in conspicuous places accessible to all employees. Every mem- 
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. 

Section' 5. No provision in this Code shall supersede any State or 
Federal law which imposes on employers more stringent require- 
ments as to age of employees, wages, hours of work, or as to safety, 
health, sanitary or general working conditions, or insurance, or fire 
protection, than are imposed by this Code. 

Section 6. 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. 

ArTTCIJE VI AD]\nNISTIl-\TION 

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

Section 1. The Code Authority shall consist of five members of 
the Industry to be elected in accordance with a fair method of 
selection, approved by the Administrator. 

Section 2, In addition to the membership as above provided, there 
may be not more than three members without vote to be appointed 
by the Administrator, who will serve without expense to the Indus- 
try, except where the Industry agrees to such expense. 

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, bylaws, regulations, and any amendments when made 
thereto, together with such other information as to membership, 
organization, and activities as the Administrator may deem necessary 
to effectuate the purposes of tlie 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 partici- 
pate in and share the benefits of tlie activities of the Code Authority 
(and to participate in the selection of the members thereof) by com- 
plying with the requirements of this Code and sustaining their 
reasonable share of the expenses of its administration. 



120 

Such reasonable share of the expenses of administration shall be 
determined by the Code Authority, subject to review by the Adminis- 
trator, on the basis of volume of business and/or such other facts as 
may be deemed equitable. 

Section 6. Nothing contained in this Code shall constitute the 
members of the Code Authority partnei-s 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 Au- 
thority, exercising reasonable diligence in the conduct of his duties 
hereunder, be liable to anyone for any action or omission to act 
under this Code, except for his own willful misfeasance or non- 
feasance. 

Section 7. The Code Authority shall make the proper investiga- 
tion of violations and endeavor to correct them and shall refer vio- 
lations to the Administrator where adjustment cannot be made 
subject to the regidation of the Administrator. 

Section 8. The Code Authority shall have the following 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 in accordance with the regulations of the Administrator. 

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

(c) To obtain from members of the Industry such information 
and reports as are required for the administration of the Code and 
in addition to information required to be submitted to any 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 
such Federal and State agencies as the Administrator may desig- 
nate; nor shall anything in any code relieve any pereon of existing 
obligations to furnish reports to Government agencies. No indi- 
vidual reports shall be disclosed to any other members 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 Au- 
thority of its duties or responsibilities under this Code and that such 
trade associations and agencies shall at all times be subject to and 
comply with the provisions hereof. 

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

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

(g) To recommend to the Administrator further fair trade practice 
provisions to govern members of tlio Industry in their relations with 
each other or with other industries and to recommend to the Adminis- 
trator measures for industrial planning, including stabilization of 
employment and to recommend to the Administrator amendments to 



121 

or modifications of this Code after submitting said reoommendations 
to the members of the Industry. 

(h) To equitably adjust compensation to workers on all compli- 
cated patterns either alone or "with Representatives of Labor at their 
request ; so that the net eai-nings on such spreads shall in no event be 
less than the average net earnings vehich the workers shall receive 
from working spreads of simple design at the ^0 and 100 minimmn 
per ounce. And for the purpose of adjusting comi>ensation the Code 
Authority shall, subject to the disapproval of the Administrator, 
have the power to revise prices per ounce upward with or without 
notice to those concerned. 

Section 9. If the Administrator shall determine that any action of 
a Code Authority or any agency thereof is unfair or unjust or con- 
trary to the public interest, the Administrator may require that such 
action be suspended to afford an opportunity for invesfegation of the 
merits of such action and further consideration by such Code Au- 
thority 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. 

Article VII — Trade Pil^^ctices 

The following shall constitute fair trade practices for this Industry 
and any violation of any fair trade practice shall constitute a 
violation of the Code. 

Section 1. Sales Below Cost. — No member of the Industry shall 
sell or offer for sale any product at a price less than liis own indi- 
vidual cost of production, to be determined in accordance with the 
system of cost accounting which shall be approved by the Adminis- 
trator upon recommendation of the Code Authority, except to meet 
a lower competition price or to dispose of distress merchandise, 
provided that sales of distress merchandise at prices below cost shall 
be reported to the Code Authority. 

Section 2. Every employer shall have a cost accounting system 
which conforms to the principles of and is at least as detailed and 
complete as the standard method of cost accounting system adopted 
by the Code Authority and approved by the Administrator, and 
which shall be used in determining his individual cost of production. 

Section 3. Membere of this Industry shall file with the Code 
Authority a schedule of already quoted prices, terms, discounts, and 
conditions of sale for products of the Industry effective on the dato 
of mailing said schedule to the Code Authority. 

Section 4. Schedules of prices, terms, discounts, conditions of 
sale, and revised price lists shall be open to the inspection of any 
interested party, and the Code Authority shall publish to the Indus- 
try said schedules of prices, terms, discounts, and shall notify the 
members of the Industry of any revision of price lists. 

Seciion 5. In order to maintain quality, no member of the In- 
dustry shall offer any product made on sheeting of light or sub-count 
material less than 87 in. two yards 60/60. 

Section 6. Whenever a member of the Industry introduces a new 
pattern, distinctive in motif and design, this pattern by cut or pho- 
tograph shall be submitted to the (>)de Authority and registered 



122 

as the exclusive design of said member of the industry for a period 
not to exceed two years. No member of the Industry shall use a 
registered pattern except by permission of the owner. 

Section 7. Cash discounts allowed by any member of the Industry 
shall not exceed three per cent 10th E.O.M. except when added into 
the invoice prices. All terms of sale shall be made on the basis of 
F.O.B. point of origin. 

Section 8. No member of the Industry shall secretly offer or make 
any payment or allowance of any gift, rebate, commission, refund, 
credit, unearned discount, or excess allowance whether in the form 
of money or otherwise; nor shall any member of the Industry se- 
cretly offer or extend to any purchaser any special service or privi- 
lege not extended to all customers of the same class, for the purpose 
of influencing a sale. 

Section 9. False Billing. — No member of the Industry shall 
knowingly withhold from or insert in a quotation or invoice any 
statement that makes it inaccurate in any material particular. 

Section 10. Each manufacturer or distributor shall, within thirty 
days after the effective date of this Code, furnish to the Code Au- 
thority and its secretary a list of his or its active patterns together 
with a certificate showing the weight and character of sheeting used 
in each pattern ; the number of ounces of unwashed yarn required to 
complete said pattern into a finished spread; the rate of pay per 
ounce for working said pattern ; the total amount of compensation to 
be received by each worker for working such pattern; the average 
time required for working the same by average experienced workers, 
and shall include in each certificate the name of the worker who 
made the test for the distributor or manufacturer. Every rnanuf ac- 
turer or distributor who shall, after the effective date of this Code, 
put out for work or introduce into the trade any new pattern shall 
first furnish the Code Authority with the above information on such 
proposed pattern. The Code Authority may require such other like 
information as it may at any time deem necessary or suitable or 
proper. Such information shall at all times be accessible to Kepre- 
sentatives of the Workers. 

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 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, sucli modifications to be based upon application to the Ad- 
ministrator and such notice and hearing as he shall specify, and to 
become effective on approval of the Administrator. 

Article IX — Monopolies, Etc. 

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



123 

Article X — Price Increases 

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

Article XI — EFrECTi\T: Date 

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



Approver] Code No. 451. 
Registry No. 226-1-05. 



o 



Approved Code No. 452 
CODE OF FAIR COMPETITION 

FOR THE 

OYSTER SHELL CRUSHERS INDUSTRY 

As Approved on June 2, 1934 



ORDER 



Approving Code of Fair Competition for the Oyster Shell 
Crushers 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 Oyster Shell Crushers Industry, and hear- 
ings having been duly held thereon and the annexed report on said 
code, containing findings with respect thereto, having been made and 
directed to the President. 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by P^xecutive Orders of the 
President, including Executive Order No. 6543-A, dated December 
3(3, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said code complies in all respecta 
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 far' Indiistrial Recovet^. 
Approval recommended : 
Armin W. Riley, 

Division Administrator. 
Washington, D.C, 

June 2, 1934. 

64503° 657-16 34 (125) 



KEPORT TO THE PEESIDENT 

The President, 

The White House. 
Sir: This is a report on the Code of Fair Competition for the 
Oyster Shell Crushers Industry, as revised after public hearing 
conducted in Washington, D.C. on March 9, 1934, in accordance with 
the proAdsions of the National Industrial Recovery Act. 

I. DESCRirTION or THE INDUSTRY 

The industry comprises the operations of crushing, screening and 
packing oyster and associated marine shells for use as poultry feed. 
The industry was started some iifty or sixty years ago, probably in 
Baltimore, Maryland, which city was then the center of the oyster 
canning business, from which business the supply of shells for crush- 
ing was obtained. In recent years, with the shifting of the oyster 
canning operations to the Gulf Coast and the discovery and utili- 
zation of " reef " shells, the center of the industry was moved to 
Florida, Louisiana and Mississippi. 

The manufacturing processes are simple and require a minimum 
of hand labor. Practices in the various factories are not identical 
,but the procedure is essentially to crush the shells, after which they 
are screened into several more or less well-recognized sizes. The 
crushing produces, in addition to the merchantable sizes, a large 
amount of very fine shell, which is only valuable for agricultural 
uses, either directlj' on the soil, or as a filler for fertilizers. 

The crushed shell is usually offered for sale in one hundred pound 
cotton or jute bags, although a limited amount has been packed in 
small pasteboard cartons. 

The product is generally shipped in carload lots from the pro- 
ducers to the distributing centers and reaches the consumers through 
feed stores, general supply stores in the country, mail order houses 
and other channels. Some of the producers have established well- 
recognized brand names through advertising and other methods and 
are able to obtain a premium ])r'.ce for their products. 

The industry presents several unique features, among which may 
be mentioned the low unit value of the proiluct, both absolute and as 
comj)ared with the costs of transportation to the points of consump- 
tion, and the fact that the consumption is almost entirely located in 
the interior of the country in accordance with the poultry popula- 
tion, while the production areas are almost without exception on the 
seaboard and in areas where the poultry populatioii is quite small. 

The prwlucts of this industry are in direct competition with 
crushed limestone, which is or may be produced in almost every 
state where crushed oyster shells aie consumed. This competition 
is an effective barrier against any undue increase in the retail price 
of crushed oyster and associated marine shells. 

(1*2G) 



127 

The production for the past two years has amounted to about 
250,000 tons, with a factory vahie of approximately one and one- 
third million dollars. The production capacity is believed to be 
much larger than the actual consumption, and the output has prob- 
ably been limited by the existing demand. 

II. LABOR rRO\TSIONS 

The code contains the standard labor provisions and includes a 
slight differential in the respective rates of pay in the northem and 
southern areas. As the products of the industry are non-perishable, 
there can arise no emergency situation in which such products might 
deteriorate. However, the exigencies of shipping through existing 
facilities, particularly as applying to water transportation, require 
emergency operations, which are provided for in the code and which 
are subject to overtime payment at one and one-third the normal 
rate. The absence of adequate statistical information regarding 
conditions in the industry in the past make it impossible to estimate 
accurately the probable increase in the number of persons employed, 
or in their respective incomes, as a result of this code, but it is be- 
lieved that the code provides for a considerable increase above the 
prevailing rat^s of pay and will probably increase employment by 
perhaps twenty percent. 

III. UNFAIR METHODS OF COMPETITION 

Under this heading as included in Article VI of the code, there 
are set up the usual provisions regarding selling operations. Of 
particular interest is the provision prohibiting sales below cost of 
production, except in the case of distress products, which may be so 
sold subject to regulations specifically provided therefor. The code 
permits members of the indus-try to quote prices and make settle- 
ments either on an f.o.b. shipping point basis, or on a delivered basis. 
This allows the absorption by a shipper of such transportation 
charges as will not reduce his net sales return below his cost of pro- 
duction. This provision, it is believed, widens the natural competi- 
tive area of the several producers. 

rv. ADMINISTRATION 

A Code Authority is established by the provisions of Article VII 
for the general administration of the code and the effectuation of 
the policies of th eAct. Since the members of the industry on the 
Pacific Coast operate largely within their own area and with little 
or no contact with the remainder of the industry, it has been pro- 
vided that a Divisional Committee shall be set up for that portion 
of the industry. Assessments for the administration of the code, 
including the expenses necessary to the preparation, adoption and 
approval of the code are provided. By a special provision the as- 
sessments to be levied on members of the industry in the Pacific 
Coast states are to be retained to the extent of seventy-five percent 
of the total for the use of the Divisional Committee, the balance be- 
ing forwarded to the Code Authority for its use. The code specifies 



128 

the manner in which a portion of the assessments shall be used for 
reimbursement of expenses incurred prior to the approval of the 
code. 

V. FINDINGS 

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

I find that: 

(a) Said code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial Recovery Act, including 
removal of obstructions to the free flow of interstate and foreign 
commerce which tend to diminish the amount thereof and provide 
for the general welfare by promoting the organization of industry 
for t!ie 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 comj^etitive practices, by promoting the fullest pos- 
sible utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tem- 

.porarily required), by increasing the consumption of industrial, 
fishery, 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,dC)0 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 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 desigTied to and will not permit monopolies or 
monopolistic practices. 

(e)'Thc 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 otlier 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. 
June 2, 1934. 



CODE OF FAIR COMPETITION FOE THE OYSTER SHELL 
CRUSHERS INDUSTRY 

Article I — Purpose 

Section 1. To effectuate the policies of Title I of the N^itiorial 
Industrial Recovery Act, the following provisions are established 
as a code of fair competition for the oyster shell crushers industry, 
and shall be the standards of fair competition for such industry, and 
shall be binding upon every member thereof. 

Article II — Definitions 

Section 1. As used in this code : 

(a) The 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 
Industrial Recovery. 

(b) The terms " oyster shell crushers industry " and " industry " 
mean the operations of crushing, screening, and packing oyster and 
associated marine shells for poultry feed in or near the localities of 
production or supply and the selling thereof by the crusher; and 
such related branches as may from time to time be included under 
the provisions of this code. 

(c) The term " member of the industry " or " crusher " means any 
individual, partnership, as-sociation, corporation, or other form of 
enterprise engaged in the industry, either as an employer or on his 
or its own behalf. 

(d) The term " South " means all of the State of Maryland except 
the City of Baltimore, and the States of Alabama, Florida, Georgia- 
Louisiana, Mississippi, North Carolina, South Carolina, Texas, and 
Virginia. 

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

(f) The term "employer" means any member of the industry 
by whom such employee is compensated or employed. 

(g) Pronouns of the masculine gender sha.ll include the feminine 
gender also. 

(h) The term "Code Authority" means the supervisory body 
established pursuant to the provisions of Article VII, Title A, hereof. 

(i) The term " Divisional Committee " means the supervisory body 
established pursuant to the provisions of Article VII, Title B, 
Section 1, paragraph (k), hereof. 

Article III — Hours 

Section 1. No clerical, accounting, or other office employee shall 
be permitted to work in excess of forty hours in any week or eight 
hours in any day. 

(129) 



130 

Section 2. No other employee shall be permitted to work in excess 
of forty hours in any week or eight hours in any day, with th*^ follow- 
ing exceptions: 

(a) Executive, supervisory, and administrative employees, pro- 
vided that they receive $35.00 or more per week. 

(b) Employees engaged in crushing, screening, or packing oyster 
and associated marine shells for poultry feed, preliminai'y to meet- 
ing a sailing date on a water sliipment, may be permitted to work 
additional hours but not in excess of eight hours in any week, pro- 
vided that time and one-third the normal rate as to each employee 
so engaged is paid therefor. 

Section 3. No employee shall be permitted to work more than six 
da.ys in any seven. 

Section 4. No member of the industry shall knowingly permit 
any employee to vrork for a total number of hours in excess of the 
number of hours above prescribed for him, whether employed by 
one or more members of the industry or otherwise. 

Article IV — Wages 

Section 1. No clerical, accounting, or other office employee shall 
be paid less than at the rate of $10.00 per week, except that office 
bo3^s shall b® paid not less than at the rate of $14.00 per week. 

Section 2. No other employee shall be paid less than at the rate 
of thirty cents i>er hour. 

Section 3. In the South, the minimum rates of pay for office 
employees may be $1.00 less for the occupation engaged in than 
those prescribed in Section 1 of this Article, and for other employees 
may be five cents per hour less than those prescribed in Section 2 
of this Article. 

Section 4. In order to maintain fair differentials between em- 
plo3^ees, an equitable readjustment in rates of pay shall be made 
m cases of employees who, prior to March 15, 1933, received more 
than the minimum rates of pay then prevailing; but in no case as 
a part of such readjustment shall weekly wages be reduced. 

Article V — General Labor Prom:sions 

Section 1. No individual under sixteen years of age shall be em- 
ployed in the industry. 

Section 2. No individual under eighteen years of age shall be 
permitted to work at operations or occupations which are detrimen- 
tal to health or hazardous in nature. The Code Authority shall 
submit to the Administrator before July 15, 1934, a list of such 
operations and occupations. 

SBcnoN 3. Employees shall have the right to organize and bar- 
gain collectively through representatives of their own choosing, and 
shall be free from the intorierence, restraint, or coercion of employ- 
ers of labor, or their agents, in the designation of such representa- 
tives or in self-organization or in other concerted activities for the 
pur{)ose of collective bargaining or other mutual aid or protection. 

Section 4. No einployoe and no one seeking employment shall be 
required as a condition of employment to join any company union, 



131 

or to refrain from joining, organizing, or assisting a labor organi- 
zation of his own choosing. 

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

Section 6. The provisions of this code shall not supersede any^ 
law which imposes on employers more stringent requirements as to 
age of emploj^ees, wages, hours of work, or as to health, fire, or 
other working conditions, than are unposed under this code. 

Section 7. Each employer shall cause the provisions of this code 
having to do with hours of labor, rates of pay, and other conditions 
of employment to be kept posted in a prominent place upon his 
business premises in such a manner that said provisions may be 
readily seen bv all employees. 

Section 8. £ach employer shall lend his cooperation and support 
to the reduction of accidents in the conduct of his operations, and 
cases of disregard of the life and health of employees shall constitute 
violations of this code. 

Section 9. The agreement of hire shall provide that wages shall 
be exempt from fines; and from charges and deductions, except 
charges and deductions for employees' voluntary contributions to 
pension, insurance, or benefit funds, and except as required by State 
leg'islation enacted for the benefit of employees. Deductions for 
other purposes may be made only when an agretMuent covering the 
same is reduced to writing and kept on file by the employer open to 
the inspection of the Administrator. The agroem.ent of hire shall 
provide also that wages shall be paid at least twice a month in cash 
or negotiable check, payable on demand. 

Section 10. Wage payments shall be made in an envelope on which 
shall be marked the name of the employer, the name of the employee, 
the amount of the wage within the envelope, the dates specifying 
the length of the period of employment compensated by the wage, 
the number of hours worked in the period, and the rate per hour. 
If it is not the custom to use an envelope, the wage shall be accom- 
panied by a slip giving the amount of the wage as well as the other 
information specified above. Any deductions shall be marked on 
the slip or envelope. 

Section 11. No employer shall reclassify employees or duties of 
occupations performed or engage in any subterfuge so as to defeat 
the purposes of the Act or tlie provisions of this code. 

Article VI — Unfair JMethods of Competition 

Section 1. The following practices constitute unfair methods of 
competition, and it shall be a violation of this code for any member 
of the industry: 

(a) False Advertlsmg. — To publish or disseminate in any manner 
any false advertising regarding crushed oyster and associated marine 
shells for poultry feed. 

(b) Misbranding. — To brand or mark or pack crushed oyster and 
associated marine sliells for poultry feed in any manner Vhich is 
intended to, or does deceive, purchasers with respect to the brand, 
grade, quality, quantity, origin, size, substance, character, material 
content, nature, or preparation of such product. 



132 

(c) Secret Rebates. — To pay or allow secretly rebates, refunds, 
credits, or discounts, whether in the form of money or otherwise ; or 
to extend secretly to certain purchasers special services or privileges 
not extended to all purchaser under like terms and conditions. 

(d) Brokerage Payment and Commissions. — To allow any part of 
any brokerage fee or commission to inure directly or indirectly to the 
benefit of any purchaser. 

(e) Prizes and Premiums. — To offer any prize or premium or other 
gift in pursuance of a plan involving lottery^ fraud, or deception. 

(f ) C om.mercial Bribery. — To give, permit to be given, or directly 
offer to give, anything of value for the purpose of influencing or 
rewarding the action of any employee, agent, or representative of 
another in relation to the business of the employer of such employee, 
the principal of such agent or the represented party, without the 
knowledge of such employer, principal or party. This provision 
shall not be construed to prohibit free and general distribution of 
articles commonly used for advertising except so far as such articles 
are actually used for commercial bribery as hereinabove defined. 

(g) False Measures. — To use slack weights or slack measures or 
over-weights or over-measures. 

(h) Free Deals. — To grant free deals, whether in the form of 
money, money's worth, or service. 

(i) Unearned Service Payments. — To pay a trade buyer for special 
advertising or the distribution of advertising matter lay such buyer 
(1) except in pursuance of a written contract made in good faith and 
explicity defining the service to be rendered and the payment for it; 
and (2) unless such service is rendered and such payment is reason- 
able and not excessive in amount; and (3) unless such contract is 
separate and distinct from any sales contract, and such payment is 
separate and distinct from any sales price and is not designed or 
used to reduce a sales price; and (4) unless such payment is equally 
available for the same service to all competitive trade buyers in the 
same competitive market; and (5) unless a copy of each such con- 
tract is retained on file for a period of one year. In order to investi- 
gate alleged violations of this paragraph, the Administrator may 
require a member of the industry to report such contracts made by 
him and/or to produce a copy thereof for inspection. 

(j) Sale Below Cost. — To sell crushed oyster and associated 
marine shells for poultry feed at less than cost, as determined pur- 
suant to the principles oi the cost finding and/ or estimating methods 
provided for in Article VII, Title B, Section Ij paragraph (h), 
hereof; Provided however., that a member of the industry may sell 
at a lower price when necessary to meet competition, but at not less 
than the lowest price not in violation of this code, offered by any 
competitor; Provided further., that a member of the industry may 
dispose of distress products and shall comply with any reflations 
as to such disposal issued pursuant to the provisions of Article VII, 
Title B, Section 1, paragraph (i), hereof. 

(k) Price Basis. — To quote prices on, or make settlements in 
payment of, crushed oyster and associated marine shells for poultry 
feed except on an f .o.b. shipping point basis, or on a delivered basis. 



133 
Article VII — Administration 

TITLE A, CODE AUTHORITY, SELECTION 

Section 1. (a) A Code Authority is Hereby established consist- 
ing of seven members, of whom six shall be elected annually at an 
election held by The Oyster Shell Crushers Association, and the 
seventh member shall be elected by a vote of the other six members 
and may or may not be a member of the industry. 

(b) The six members of the Code Authority shall be made up of 
two representatives from the North and Middle Atlantic States, 
including Virginia; one from the Atlantic Coast States south of 
Virginia; two from the States of Alabama, Mississippi, Louisiana, 
and Texas; and one from the States of California, Washington 
and Oregon. 

(c) Nominations shall be made by vote in the districts as defined 
and candidates elected by vote of the members of the industry as a 
whole. The Code Authority shall be elected immediately upon ap- 
proval of this code. Each member of the industry shall ba entitled 
to one vote and a vote cast by mail or by proxy shall have the siune 
etTect as a vote cast in person. 

SEcrrioN 2. In addition to the membership as above provided, 
there may be one to three members appointed by the Administrator 
to serve without vote for one year or such lesser period as he may 
designate. 

Section 3. Any vacancies occumng in the membership of the 
Code Authority, except among the members appointed by the Ad- 
ministrator, shall be filled for the uiicxpired term by vote of the 
remaining members of the Code Authority, subject to the disap- 
proval of the Administrator. Such vacancy shall be filled by a 
member from the same district as that fi'om which the vacancy 
occurred. 

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, exercising reasonable diligence in the conduct of his duties 
hereunder, be liable for any action or omission to act under this code, 
except for his own wilful malfeasance or nonfeasance. 

Section 5. In order that the Code Authority shall at all times 
he truly representative of the industry and in other respects com- 
ply with the provisions of the Act, the Administrator may prescribe 
such hearings as he deems 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. 

Section 6. 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 



134 

(2) submit to the Administrator true copies of its articles of asso- 
ciation, by-laws, regulations, and all amendments thereto when made, 
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, 

TrrLE B, CODE AUTHORITY, POWERS AND DUTIES 

Section 1. 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 
to provide for the compliance of the industry with the provisions 
of the Act. 

(b) To investigate any charge of specific alleged violation of this 
code coming to the knowledge of a member of the industiy and sub- 
mitted to the Code Authority in a written statement together with 
all substantiating evidence, or any charge of such violation which 
may come to the knowledge of the Code Authority from any other 
reliable source. Should it appear to the Code Authority that a 
violation of the provisions of this code has occurred, it shall give 
the member charged an opportunity for hearing. If as a result of 
this hearing and/or any other information available, the Code 
Authority is convinced that a violation of this code has occurred, 
it shall present the facts to the Administrator for such action as 
he sees fit. 

(c) To recommend amendments to this code as experience may 
indicate to be necessary to secure the effectuation of the policies of 
the Act. 

(d) To adopt by-laws and regulations for its procedure. 

(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; but nothing herein shall relieve the Code Authority of its 
duties or responsibilities under this code, and such trade associa- 
tions and agencies shall at all times be subject to and comply with 
the provisions hereof. 

(f) To obtain from members of the industry such information and 
reports as are required for the administration of this code. To pro- 
vide for submission by members of such information and reports as 
the Administrator may deem necessary for the purposes recited in 
Section 3 (a) of the Act, which information and reports shall be 
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 in- 
dividual report shall be disclosed to any member of the industry or 
any other party except to such government agencies as may be di- 
rected by the Administrator. 

(g) To submit to the Administrator reports of readjustments in 
rates of pay as referred to in Article IV, Section 4, hereof. 

(h) To formulate an accounting system and methods of cost find- 
ing and/or estimating capable of use by all members of the industry. 



135 

After such system and methods have been formulated, and the same 
have been approved by the Administrator, full details concerning 
them shall be made available to said members. 

(i) To submit to the Administrator, for approval, regulations 
covering the disposal below cost of distress products by members of 
the industry. 

(j) To establish standards of quality and grade for crashed oyster 
and associated marine shells for poultry feed, which standards, 
subject to the approval of the Administrator, shall be binding upon 
all members of the industry. 

(k) To set up, with the approval of the Administrator, a Divi- 
sional Committee to administer this code in the Pacific Coast states. 

(1) 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. 

(m) To cooperate with the Administrator in regulating the use of 
any N.R.A. insignia solely by those members of the industry who 
are complying witii this code. 

Section 2. If the Administrator shall determine at any time that 
any action of the Code Authority or any agency thereof may be un- 
fair or unjust or contrary to the public interest, the Administrator 
may require that such action be suspended to afford an opportimity 
for investigation of the merits of such action and further considera- 
tion by the Code Authority or its 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. 

TrrLE C. EXPENSES 

Seotion 1. For the purpose of meeting such expenses of adminis- 
tering this code and such expenses incurred in furthering the prepa- 
ration, adoption, and approval of this code as may be approved by 
the Administrator : 

(a) Every member of the industry for the first year following the 
effective date of this code shall pa}^ an assessment at the rate of ten 
cents per ton on all shipments of crushed oj'-ster and associated ma- 
rine shells for poultry feed made by him. The assessment shall be 
based upon the shipments of each month ; and monthly portions 
thereof shall become due and payable to the Code Authority not later 
than the tenth day of the succeeding month. 

(b) For the second and succeeding years the assessment shall be at 
the rate of seven cents per ton, likewise payable ; but it is further 
provided that should this amount be insufficient for the purpose of 
administering this code, additional assessments, subject to the ap- 
proval of the Administrator, shall be levied on a tonnage basis. 

Section 2. Upon the termination of this code, and at the discre- 
tion of the Code Authority at the close of each year, all unexpended 
funds shall be returned by the Code Authority to the members of 
the industry in accordance with such equitable factors ae will allow 
due consideration to their respective contributions to the same. 

Section 3. It is hereby provided that seventy-five percent of the 
assessment levied upon the members of the industry whose iDroduc- 



136 

tion facilities are located in the Pacific Coast states shall be retained 
for the use of the Divisional Committee, the remainder being trans- 
mitted to the Code Authority for use by it in the administration of 
this code. 

AeTICLE VIII IMoDinCATION 

Section 1. This code and all the provisions thereof are expressly 
subject to the right of the President, in accordance with the provi- 
sions of Section 10 (b) of the Act, from time to time to cancel or 
modify any order, approval, license, rule, or regulation, issued under 
the Act; and specifically, but without limitation, to the right of the 
President to cancel or modify his approval of this code or any condi- 
tion imposed by him upon approval thereof. 

Section 2. It is contemplated that from time to time supplementary 
or amendatory provisions to this code will be submitted for the 
approval of the President, to prevent unfair competition and to 
effectuate the other policies of the Act, after such notice and hearing 
as the Administrator shall specify, and, with the approval of the 
President, the provisions of this code may be canceled or modified 
as changes in circumstances or experience may indicate : Provided 
however^ that no such supplementary or amendatory provisions shall 
be submitted to the President until such members of the industry as 
are affected thereby shall have been afforded an adequate opportunity 
; to be heard. 

Article IX — Monopolies 

Section 1. No provision of this code shall be so applied as to 
permit monopolies or monopolistic practices, or to eliminate, oppress, 
or discriminate against small enterprises. 

Article X — Effective Date 

Section 1. This code shall become effective on the second Monday 
following its approval by the President. 



Approved Code No. 452. 
Registry No. 117-80. 



O 



Approved Code No. 453 

CODE OF FAIR COMPETITION 

FOR THE 

LICORICE INDUSTRY 
As Approved on June 2, 1834 



OfiDER 

Approving Code of Fair Competition for the Licorice Industry 

An ap)plication having been duly made pursuant to and in full 
coriipliance 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 Licorice 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, THEPvEFORE, 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 
President, including Executive Order No. 6543-A, dated December 
30, 1933, and otherwise: do hereby incorporate by reference said an- 
nexed report and do find that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act; and do hereby order that said Code 
of Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Ad/ininistrator for Indicstrial Recovery. 

Approval recommended: 
Armin W. Riley, 

Division Administrator. 

Washington, D.C, 

June'2,W3J^. 

64640°- C57-19 34 (137) 



REPORT TO THE PRESIDENT 

The President, 

The WMte Home. 
Sir: This is a report on the Code of Fair Competition for the 
liicorice Industry as revised after a Public Hearing held in Wash- 
ington, D.C. on April 16., 1934, in accordance with the provisions 
of the National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employnrent is limited to eight (8) hours per day and forty (40) 
hours per week and to six (6) days in any seven (7) day period, 
with the exception of watchmen, who may work seve-n (7) days a 
week, and engineers and firemen, who may work forty-eight (48) 
hours per week, A maximum or eight (8) hours overtime is per- 
mitted for shipping employees during any thirty (30) day period. 

A minimum wage of forty (40) cents per hour is established 
for common laborers. Office employees are to be paid not less than 
sixteen dollars ($1^.00) per week, and office boys are to be paid not 
less than fourteen dollars ($14.00) per week. 

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

Overtime is to be paid at the rate of one and one-third the regu- 
lar rate for all hours worked in excess of eight (8) hours per day 
and forty (40) hours per week. Provision is made for adjustment 
of wages above the minimum. 

THE INDUSTRY 

The Licorice Industry is a relatively small industry, producing 
by continuous process licorice paste and by-products from licorice 
extracted from licorice roots. The raw materials are imported, 
principally from the Near East. In 1932 there were 309 employees 
in this industry and in 1928 there were 323, a decrease of about 4 
percent. The sales in 1932 totaled $2,571,000 as against $4,182,000 
in 1928, a decrease of about 34 percent. Approximately $7,500,000 
is invested in the industry. About 90 percent of the licorice is used 
in the manufacture of tobacco products and the remaining 10 percent 
in the manufacture of candy and pharmaceutical products. The 
Licorice Industry is slowly declining, due to the decrease in the 
consumption of chewing tobacco, the manufacture of which con- 
stitutes the principal outlet for licorice. 

In view of the fact that there has been a decrease of but 4 percent 
in the number of employees during the past four years and that an- 
nual sales have decreased 34 percent, it is not likely that there will be 
an appreciable increa.se in the number of persons employed in the 

(188) 



139 

industry. It is estimated that under the wage rates established 
by the Code the wages paid by the industry will be raised to the 
1929 level. 

FINDINGS 

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

I find that: 

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

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

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

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

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

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

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

Hugh S, Johnson, 

Administrator. 
June 2, 1934, 



CODE OF FAIR COMPETITION FOR THE LICORICE 
INDUSTRY 

Abticle I — Purposes 

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

Artiole II — ^Definitions 

iSbction 1. The terms " Licorice Industry " and " Industry " as 
used herein mean* the manufacture of licorice paste and/or by- 
products by the extraction of licorice from licorice roots, and such 
related branches as may from time to time be included under the 
provisions of this Code by amendment hereof. 

Section 2. The terms " member of the industry " and " member " 
as used herein include, but without limitation, any individual, part- 
nership, association, corporation, or other form of enterprise engaged 
in the industry, eitner 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 " employer " as used herein means any per- 
son by whom any such employee is compensated or employed. 

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

Section G. The term " Code Authority " as used herein means that 
Code Authority of the Licorice Industry constituted in compliance 
with the provisions of Article VI. 

Section 7. The term " watchmen " as used herein means employees 
at least ninety percent (90%) of whose working time is spent in 
watching and safeguarding the premises of the member. 

Section 8. The term " outside salesman " as used herein means 
any salesman who performs exchisively selling functions and does 
not deliver merchandise. 

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, except as follows: 

(a) Executive, supervisory, technical, and administrative employ- 
ees, provided that they regularly receive tliirty-five dollars ($35.00) 
or more per week, and outside salesmen. 

(140) 



141 

(b) Engineers and firemen, provided that tliey shall not be per- 
mitted to work in excess of forty-eight (48) hours in any week. 

(c) A maximmn of eight (8) hours overtime may be permitted 
for shipping employees during any thirty (30) day period, and all 
employees so worked shall receive overtime pay at the rate of time 
and one-third. 

(d) Watchmen, provided that they shall not be permitted to work 
in excess of fifty-six (56) hours in any week. 

(e) The maxniium hours fixed above shall not apply to employees 
on emergency repair work involving break-downs or the protection 
of life or property, nor to overtime work to avoid a shut-down, due 
to temporary absence of relief workers, provided that anv employee 
so engaged shall be compensated by at least time and one-third for all 
hours worked in excess of eight (8) hours in any day and/or the 
number of hours per week prescribed for his classification, and re- 
ports shall be furnished monthly to the Code Authority stating the 
number of hours so worked in excess of those prescribed above. 

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

Section 2. No employees, except watchmen, shall be permitted to 
work more than six (6) days in any seven (7) day period. 

Articlb IV — Wages 

Section 1. No clerical, accounting or other office employee shall be 
paid at a rate of less than sixteen dollars ($16.00) weekly, except 
office boys under eighteen (18) years of age, who may be employed 
at a rate of not less than fourteen dollars T$14.00) weekly. 

Section 2. No watchman shall be paia at a rate of less than 
eighteen dollars ($18.00) per week of fifty-six (56) hours. 

Section 3. No person or emploj^ee other than those covered in 
paragraphs 1 and 2, above, shall be paid at a rate of less than forty 
cents (40^) per hour. 

Section 4. This Code establishes a minimum rate of pay which 
shall apply, irrespective of whether an employee is actually com- 
pensated on the basis of time rate, piece-work, r>r other basis. 

Section 5. No employee whose normal full time weekly hours for 
the four weeks ending March 4, 1934, are reduced by this Code by 
less than twenty-five percent (25%) shall have his or her full timd 
weekly earnings reduced. No employee whose full time weekly 
hours are reduced by more than said percent shall have his or her 
said earnings reduced by more than sixteen and two-thirds percent 
(16%%). I 

Wlienever the adoption of the minimum rates of this Code results 
in lessening the differentials between unskilled labor and skilled oc-' 
cupations, wage*s above the minimum shall bo increased so as to 
maintain the direct differentials existing on March 4j 1933. A report' 
of such adjustments shall be submitteeTto the Administrator within' 
thirty (30) days after 'the effective date of this Code. j 

Section 6. Female employees performing substantially the same' 
work as male employees shall receive the same rate of pay as mala' 
employees. 



142 

Section 7. A person whose earning capacity is limited because of 
age or physical or mental handicap may oe employed on light work 
at a wa^e below the minimum established by this Code if the em- 
ployer obtains from the State authority designated by the United 
States Department of Labor a certificate authorizing his employment 
at such wages and for such hours as shall be stated in the certificate. 
Each employer shall file 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 8. Wages shall be exempt from fines and rebates, and 
from charges and deductions, except charges and deductions for 
contributions voluntarily made employees to pension, insurance or 
for benefit funds, or required by law, or deductions for other pur- 
poses when provision therefor is made in a written contract between 
employer and employees. All such contracts must be kept on file by 
each employer for at least six (6) months after the termination of 
the contract, and, euch contract shall be open to the inspection of 
the Administrator. 

Arti€Jl<e Y — General Labor Pro^^sions 

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

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

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

Section 4. 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 which are 
hazardous in nature or dangerous to health. The Code Authority 
shall submit to the Administrator before June 1, 1934, a list of sucn 
operations or occupations. 

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, wa^es, hours of work^ or as to 
safety, health, sanitary or general working conditions, or insurance, 
or fire protection, than are imposed by this Code. 

Section G. Employers shall not change the method of payment of 
compensation or reclassify employees or duties of occupations per- 
formed by employees, or discharge employees to reemploy them at 
lower rates, or engage in any subterfuge, so as to defeat the purpose 
of the Act or the provisions of this Code. 

Section 7. 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 healtli shall be submitted by the Code 



i43 

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

Section 8. Employers shall make payment of all wages due in 
lawful currency or by negotiable checks, payable on demand. Wages 
shall be paid at least twice every month, and salaries at least at 
the end of the month. No employer shall withhold wages .except 
on court order, or by law. 

Section 9. All employers shall post and keep posted copies of 
this Code in conspicuous places accessible to sdl 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 — Organization, Powers and Duties or the Code 
Authority 

Section 1. There shall forthwith be constituted a Code Authority 
consisting of four (4) members, three (3) of whom shall be elected 
by members of the United States Licorice Association and one (1) 
of whom shall be elected by members of the Industry who are not 
members of the United States Licorice Association. Should non- 
men>bers of the Association fail to elect a member of the Code Au- 
thority sueh non-member may be appointed by the Administrator, 
or in his discretion, the Code Authority may consist only of the 
three members that have been elected by the members of the 
Association. 

(a) The members of the Code Authority shall be certified to the 
Administrator by the Secretary of the United States Licorice 
Association. 

(b) The Code Authority shall have as its Chairman one of its 
memoers duly elected by the said Code Authority. 

(c) Any vacancies occurring in the membership of this Code Au- 
thority shall be filled for the unexpired term as follows: 

The United States Licorice Association shall have the right to 
elect a new member of the Code Authority upon a vacancy occurring 
in the Code Authority due to the loss of a member who was pre- 
viously elected by the United States Licorice Association. 

Non-members of the United States Licorice Association shall have 
the right to elect a new member of the Code Authority upon a 
vacancy occurring in the Code Authority due to the loss of a mem- 
ber who was previously elected by non-members of the United States 
Licorice Association. • 

Section 2. In addition to membership as above provided, there 
may be not more than three (8) members, without vote, to be ap- 
pointed by the Administrator, to serve for such term or terms as 
ne may specify. 

Section 3. In order that the Code Authority shall at all times be 
truly representative of the industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe 
such hearings as he may deem proper; and thereafter if he shall 
find that the Code Authority is not truly representative or does not 
in other respects comply with the provisions of the Act, may require 



144 

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

Section 4. Nothinj^ contained in this Code shall constitute the 
members of the Cocfe Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any mamier 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 malfeasance or nonfeasance. 

Section 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 Administra- 
tor may require that such action be suspended to afford an op- 
portunity for investigation of the merits oi such action and further 
consideration by such Code Authority or agency pending final action 
shall not be effective unless the Administrator approves or unless 
he shall fail to disapprove after thirtj^ days notice to him of inten- 
tion 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 is- 
sued by the Administrator, the Code Authority shall have the follow- 
ing powders and duties, in addition to those authorized by other 
provisions in 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 by-laws and rules and regulations for its procedure 
and for the administration of the Code. 

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

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

I (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 industiy. 



145 

(f) 1. It being found necessary, in order to support the adminis- 
tration of this (Jode 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: 

(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 neces- 
sary, (1) an itemized budget of its estimated expenses for tiie 
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 obtain equitable 
contribution as above set forth by all such members of the Indus- 
try, and to that end, if necessary, to institute legal proceedings 
therefor in its own name. 

2. Each member of the Industry shall pay his or its equitable con- 
tribution to the expenses of the maintenance of the Code Authority, 
determined as hereinabove provided, and subject to rules and regu- 
lations pertaining thereto issued by the Administrator. Only mem- 
bers of the Industry complying with the code and contributing to the 
expenses of its administration as hereinabove provided, thall be en- 
titled to participate in the selection of members of the Code Author- 
ity or to receive the benefits of any of its voluntary activities or to 
make use of any emblem or insignia of the National Recovery Admin- 
istration. 

3. The Code Authority shall neither incur nor pay any obligation 
in excess of the amount thereof as estimated in its approved budget, 
except upon approval of the Administrator; and no subsequent 
budget shall contain any deficiency item for expenditures in excess of 
prior budget estimates except those which the Administrator shall 
nave so approved. 

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

(h) To appoint a Trade Practice Committee which shall meet 
with the Trade Practice Committees appointed under such other 
codes as may be related to the Industry for the purpose of formu- 
lating fair trade practices to govern the relationships between em- 
ployere under this Code and under such other codes to the end that 
such far ti'ade practices may be proposed to the Administrator as 
amendments to this Code and such otlier codes. 

(i) To provide appropriate facilities for arbitration, and subject 
to the approval of the Administrator, to prescribe rules of procedure 
and rules to effect compliance w^ith awards and determinations. 



146 
Article VII — Trade Practice Rules 

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

Rule 2. False Billing. — No member of the Industry shall know- 
ingly withhold from or insert in any quotation or invoice any state- 
ment that makes it inaccurate in any material particular. 

Rule 3. Irvaccurate Labelling. — 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. 

Rule 4. Inaccwrate References to Covipetitors^ Etc. — No member 
of the Industry shall publish advertising which refers inaccurately 
in any material particular to any competitors or their goods, prices, 
values, credit terms, or services. 

Rule 5. Threats of Law Suits. — No member of the Industry shall 
publish or circulate unjustified or imwarranted threats of legal pro- 
ceedings which tend to or have the effect of harassing competitors or 
intimidating their custorners. Failure to prosecute in due course 
shall be evidence that any such threat is unwarranted or unjustified. 

Rule 6. Secret Rehates. — No member of the Industry shall se- 
cretly offer or make any payment or allowance of a rebate, refund, 
commission, credit, unearned discount or excess allowance, whether 
in the form of money or otherwise, nor shall a member of the Indus- 
try 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. Selling on Consigmnent. — No member of the Industry 
shall ship goods on consignment except under circumstances to be 
defined by the Code Authority, subject to the approval of the 
Administrator. 

Rule 8. Bribing Employees. — No member of the Industry shall 

five, permit to be given, or directly offer to give, anything of value 
or the purpose of influencing or rewarding the action oi any em- 
ployee, agent, or representative of another in relation to the business 
of the employer of such employee, the principal of such agent or the 
represented party, without the knowledge of such employer, prin- 
cipal, or party. This provision shall not be construed to prohibit full 
and general distribution of articles commonly used for advertising 
except so far as such articles aro actually used for commercial 
bribery as hereinbefore defined. 

Rule 9. Interference with Another^ s Contracts. — No member of 
the Industry shall attempt to induce the breach of an existing con- 
tract between a competitor and his employee or customer or source 
of supply; nor shall any such member interfere with or obstruct the 
performance of such contractual duties or services. 



147 

KuLE 10. Coercion.- — No member of the Industry shall require 
that the purchase or lease of any goods be a prerequisite to the pur- 
chase or kase of any other goods. 

Article VIII — Export Trade 

Sectton- I. No provision of this Code relating to prices or tenns 
of selling, shipping or marketing, shall apply to export trade or 
sales or shipments for export trade. "Export Trade" shall be as 
defined in the Export Trade Act adopted April 10, 1918. 

Article IX — Modiitcation 

Section 1. This Code and all the provisions thereof are expressly 
made subje-ct 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 cir- 
cumstances, such modifications to be based upon application to the 
Administrator and such notice and hearing as he shall specify, and 
to become effective on approval of the President. 

Article X — Monopolies 

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

Article XI— Price Increases 

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

Article XII — EF^ECTI^^ Date 

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

Approved Code No. 453. 
Registry No. 114-15. 

o 



Approved Code No. 454 
CODE OF FAIR COMPETITION 

FOR THE 

OPTICAL RETAIL TRADE 

As Approved on June 4, 1934 



ORDER 



Approwng Code of Fair Competition for tiie Optical RetaiIj 

Tr^^de 

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 Com])etition for the Optical Retail Trade, and hearings having 
been duly held thereon and the annexed report on said Code, con- 
taining findings with respect thereto, having been made and directed 
to the President. 

NOW, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including JExecutive Order 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. Johnsoist, 
Administrator far Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Administrator. 

Washington, D.C, 

June 1 1934. 



-057-21 34 (149) 



EEPOKT TO THE PRESIDENT 

The President, 

The White House. 

Sir: A Public Hearing on the Code of Fair Competition for the 
Optical Retail Trade, submitted by a Code Committee, consisting of 
representatives of The Better Vision Institute, 30 Rockefeller Plaza, 
New York, N. Y., The Guild of Prescription Opticians of America, 
Inc., New York, N. Y., and the American Optometric Association, 
Inc., Brooklyn, New York, representing approximately 81 percent 
of the volume of business of said Trade, was conducted in Wash- 
ington on December 7, 1933, in accordance with the provisions of 
the National Industrial Recovery Act. 

The maximum hours permitted under this Code are forty (40) 
in any one week. Provision is made for 96 hours extra work in any 
52 week period, provided, that any employee working these extra 
hours is granted leave of absence with pay for a period equal to 
the overtime worked or, is paid time and one-third for all hours 
in excess of 40 in any one week. 

The minimum wage provided in this Code in $15.00 per week, 
except office girls in cities of less than 50,000 population and mes- 
sengers, who are to be paid not less than $12.00 per week. Provi- 
sion is made for an equitable adjustment of wages above the 
minimum. 

The Optical Retail Trade is engaged in the selling at retail of 
oplithalmic products and in rendering services in connection with 
ophthalmic products. This trade embraces approximately 14,250 
establishments, located in every city and hamlet throughout the 
country. There are two classes in this Trade: first, the Optome- 
trists, about 14,000, who both examine eyes and sell ophthalmic 
products; second, the Opticians, who fill prescriptions and sell 
ophthalmic products. 

The aggregate capital investment for 1933 was approximately 
85 million dollars, or about $5,800 per establishment. Sales in this 
trade for 1929 were approximately 185 million dollars. In 1933, 
sales had dropped to about 135 million dollars. 

Employment has remained fairly constant over the last four years. 
In 1933, there were approximately 13,300 employees, as com))ared 
with 14,500 in 1929. There are four general classifications of em- 
ployees : shop crew, fitters of glasses, clerks and office girls (or re- 
ceptionists). Approximately 40 percent of the total employees are 
office girls, who under the definition in the Code, can per:foiTn no 
other duties than receiving patrons, making appointments and 
answering the telephone. 

This trade adopted the proposed wage in this Code in August, 
1933, which resulted in a considerable increase to office girls and 
messengers, who prior to that time had been paid less than the mini- 
mum rate. The other employees received the same weekly salaries 
for the shorter work week. 

Prior to tin; President's Reemployment Agreement the average 
weekly hours were 50. In August, 1933, this trade adopted a 44 

(150) 



151 

hour week which resulted in an increase of about 7 percent in em- 
ploj-ment or 840 employees. 

Employment in this trade will increase about ten percent of 1,350 
employees as a result of the proposed Code. The additional wage 
burden to the industry will amount to approximately $825,000. 

The trade practices of the proposed Code will aid the trade greatly 
and will also protect the consumer. 

FINDINGS 

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

I find that : 

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

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

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

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

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

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

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

Respectfully, jjugh S. Johnson, 

June 4 1934. Administrator. 



CODE OF FAIR COMPETITION FOR THE OPTICAL 
RETAIL TRADE 

Aettcle I — Purpose 

To effect the policies of Title I of the National Industrial Recov- 
ery Act, this Code is submitted as a Code of Fair Competition for 
the Optical Retail Trade, and, upon approval, its provisions shall 
be the standards of fair competition for such trade and shall be 
binding upon every member thereof. 

Article II — Definitions 

1. The term " Optical Retail Trade " as used herein includes the 
retail distribution in individual units or small quantities to the ulti- 
mate consumer of eyeglasses, spectacles, oxfords, lorgnettes, and all 
other ophthalmic frames, mountings and accessories, all ophthalmic 
lenses, eyeglasses and spectacle cases, parts, sunglasses when fitted 
with ophthalmic lenses, industrial goggles and eye protectors when 
fitted with ophthalmic lenses, and fitting, repairing, adjusting and 
otherwise servicing of eye-wear and ophthalmic products of all kinds, 
and the servicing of prescriptions to the ultimate consumer, with 
respect to the foregoing products, and such related branches or sub- 
divisions as may from time to time be included under the provisions 
of this Code. For the purpose of effectuating this Code the fore- 
going definition shall embrace and include every and all persons 
engaged in the retail distribution to the ultimate consumer of the 
foregoing products or the servicing thereof. 

2. The term " member of the trade " as used herein includes, but 
without limitation, any individual, partnership, association, corpo- 
ration or other form of enterprise engaged in the trade, either as an 
employer or on his or its own behalf. 

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

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

5. Tlie term " office girl " as used herein shall mean anyone re- 
ceiving patrons, making appointments, answering the telephone and 
jicrforining no other duties whatsoever. 

C. Th(! terms "President", "Act" and "Administrator" as used 
herein mean res]:)ectively the President of the United States, Title 
I of (1)(^ National Industrial Recovery Act, and the Administrator 
for Industrial Recovery. 

7. P()))iihition for the pur])oses of this Code shall be determined 
by reference to the latest Federal Census. 

(152) 



153 

Akticle III — Hoima 

1. McLximum hovirs. — No employee shall be permitted to work in 
excess of forty (40) hours in any one week or nine (9) hours in 
any twenty-four (24) hour period, except as herein otherwise 
provided. 

(a) Employees in this trade may be permitted to work twelve 
(12) additional hours during any eight (8) weeks in any fifty-two 
(52) week period, provided that such employees do not work in 
excess of ten (10) hours in any twenty-four (24) hour period. 

(1) Each employee, compensated on a weekly basis, shall be 
granted leave of absence with pay for a period equal to the overtima 
worked as permitted and limited in Section (a) of this Article, 
Such leave of absence shall be granted in daily or weekly periods, 
to be agreed upon between employer and employee, within the 
calendar year in which the overtime occurs, provided, however, that* 
the following holidays, namely. New Years Day, Memorial Day^^ 
Fourth of July, Labor Day, Thanksgiving and Christmas, shall notf 
be considered as leave of absence under the above rule. 

(2) If any employee voluntarily or involuntarily leaves the em-, 
ploy of any employer before said employee has been allowed leave 
of absence sufficient to compensate said employee for the overtime 
work, said employee shall be paid for such overtime based upon his 
regular weekly compensation. 

(3) Any employee, who is employed or paid on an hourly basis, 
shall be paid at least one and one-third times his normal rate of 
pay for all time worked in excess of forty (40) hours in any one 
week or nine (9) hours in any twenty-four (24) hour period, as 
established in Section 1 of this Article. 

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

2. Exceptions as to hours. — The provisions of this Article shall 
not apply to executives, managers or fitters of glasses, who are paid 
thirty-five dollars ($35.00) per week or more, or registered or 
licensed professional persons, viz, physicians or optometrists, when 
said persons are engaged as such in their profession. 

3. Em,pIoyment hy Several Employers. — No employer shall know- 
ingly permit any employee to work for any time, which, when added 
to the time spent at work for another employer or employers in this 
Trade, exceeds the maximum permitted herein. 

4. Hours Worked Per Day — Rest Periods. — The hours worked by 
any employee during each day shall be consecutive, provided that 
an interval not longer than one hour may be allowed lor each regular 
meal period, and such interval shall not count as a part of the em- 
ployee's working time. Any rest period which may be given em- 
ployees shall not be deducted from such employees' working time. 

Article IV — ^Wages 

1. Miwimmm. Wages. — No employee shall be paid in any pay pe- 
riod less than at the rate of fifteen dollars ($15.00) per week, except 
office girls in cities of 50,000 population or less, as defined in Section 
5 of Article II, and messengers, who shall be paid not less than 
twelve dollars ($12.00) per week. 



154 

2. P'lecexoork Compensation. — This article establishes minimum 
rates of pay which shall apply, irrespective of whether an employee 
is actually compensated on time rate, piecework or other basis. 

3. Part-time Einployees — Mini^num Wages. — Part-time employees 
shall be paid not less than at an hourly rate proportionate to the 
rate prescribed in the foregoing sections of this article. 

4. Wages Above Minimum. — No hourly, daily or full time weekly 
compensation for employees who are paid less than fifty dollars 
($50.00) per week shall be less than such compensation existing as 
of June 16, 1933 ; and no employee shall be paid a wage rate which 
will yield a less wage for the shorter full-time week herein estab- 
lished than he could have earned for the same class of work for. 
the longer full-time week existing as of June 16, 1933. Wage in- 
creases established under the President's Reemployment Agreement 
shall at least be maintained. 

5. Female Employees. — Female employees performing substan- 
tially the same work as male employees shall be paid the same rate 
of pay as male employees, and where they displace male employees 
they shall be paid at least the same rate of pay as the male employees 
they displace. 

6. Handicapped Persons. — A person whose earning capacity is 
limited because of age or physical or mental handicap may be em- 
ployed on light work at a wage below the minimum established by 
this Code if the employer obtains from the State authority desig- 
nated by the United States Department of Labor a certificate au- 
thorizing 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 hours of work for 
such emplo3'ee. 

7. Payment of Wages. — All employers shall make payment of all 
wages due at least every two (2) weeks and salaries at least monthly 
in lawful currency or by negotiable demand check. Thase wages and 
salarie,s shall be exempt from any charges, fines or deductions or 
paym<'nts for pensions, insurance or sick benefits other than those 
volimtarily paid by the wage earner or required bj^ State law. No 
employer shall withhold wages. The employer or his agents shall 
accept no rebates directly or indirectly on such wages or salaries. 

8. Rcplacc/ment at Lesser Wage. — No employee shall be discharged 
and reemi)loyed at a lesser weekly compensation for the same class 
of work than he was previously paid ; no employee discharged since 
June 16, 1933, shall be reemployed at a lesser weekly compensation 
for the same class of work than he was previously paid. 

Article V — General Labor 1*ro\isions 

1. Child Lahor. — No person under eighteen (18) years of age 
shall be employed at operations or occupations which are hazardous 
in nature or dangerous to health. No person under sixteen (16) 
years of age shall be employed in the trade in any cai)acity. In any 
State an employer shall i)e deemed to have com])lied 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 



155 

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

2. Provisiom From the Act. — (a) 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) 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 rates of pay and other conditions of employment approved 
or prescribed by the President. 

3. Reclassificatio7i of Etiiyloyces. — No emploj'er shall reclassify 
employees or duties of occupations performed or engage in any other 
subterfuge so as to defeat the purposes of the Act or of this Code. 

4. Standards for Safety a7ul Health. — Every employer shall pro- 
vide 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. 

5. State Laws. — No provision in this Code shall supersede any 
State or Federal law which imposes on emploj^ers more stringent 
requirements as to age of employees, wages, hours of Avork, or as to 
safety, health, sanitary or general working conditions, or insurance 
or fire protection, than are imposed by this Code. 

6. Posting. — All employers shall post and keep posted copies of 
the wage, hour and general labor provisions of this code in con- 
spicuous places readily accessible to employees. Every member of 
the Trade 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. 

7. Dis'?mssal.— 'No employee shall be dismissed by reason of making 
a complaint or giving evidence with respect to an alleged violation, 
of this Code. 

8. Established Practices. — No employer shall eliminate or restrict 
established practices or privileges heretofore granted employees. 

9. Reductio7i. — If any employer in this Trade shall reduce his total 
number of employees, or shall reduce the total weekly wage of any 
employee, or shall pay a lesser Aveekly wage to any employee than was 
previously paid to a former employee, performing substantially the 
same or similar service, or shall have doiie any of these things since 
June 16, 1933, then, in any one or more of these events, such facts, 
with all the surrounding circumstances, shall be reported to the 
Code Authority and to the Administrator. 

10. Compensation for Time Silent at Pla.ce of Duty. — No employee 
shall be paid at less than his normal rate of pay for all time required 
to be spent at the place of employment or in connection with the dis- 
charge of duties of such employment. 



156 

Article VI — Oeganization, Powers and Duties of the Code 
Authority 

1. Organization and Constitution. — A Code Authority is hereby 
established consisting of fourteen (14) persons to be ^elected in the 
following manner : 

(a) The fourteen (14) persons shall be chosen by the Trade 
through a fair method of selection approved by the Administrator, 
four (4) of whom shall be members of the Guild of Prescription 
Opticians of America, Inc. ; four (4) shall be members of the Ameri- 
can Optometric Asociation; four (4) shall be members of the Better 
Vision Institute, two (2) of whom shall be Retail members of the 
Institute and Opticiaixs, and two (2) of whom shall be Retail mem- 
bers of the Institute and Optometrists; and two (2) of whom shall 
be selected from members of the Trade, who are not members of 
any Association, one (1) of whom shall be an optometrist and one 
(1) an optician. 

(b) Any vacancy occurring in the membership of the Code Au- 
thority shall be filled by members of the Trade, through the same 
method of selection approved by the Administrator for the initial 
^election, and the representative character required by subsection 
(a) of this section shall at all times be maintained. 

2. In addition to membership as above provided, there may be 
three (3) members, without vote, to be known as Administration 
members, to be appointed by the Administrator to serve for such 
terms as he may specify. 

3. Each professional, trade or industrial association directly or 
indirectly particinating in the selection or activities of the Code 
Authority shall (1) impose no inequitable restriction on member- 
ship and (2) 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 
meml)ership, organization and activities as the Administrator may 
deem necessary to effectuate the purposes of the Act. 

4. In order that the Code Authority shall at all times be truly 
representative of the trade and in other respects comply with the 
provisicms 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 
api:)ropriate modification of the Code Authority. 

5. Any person engaged in the trade shall be eligible for member- 
ghi]) in any professional or trade association or organized group 
upon r-omplianr-o with the ]:)rovisions of the by-laws relating to 
memljership, provided that any person applying for such member- 
sliip shall, in addition to (he payment of such dues as are imposed 
and paid by all other members, accept a reasonable and equitable 
share of the cost of (^ode administration. 

G. Nothing contained in this Code shall con«;titute the members 
of the Code Authority partners for any purpose. Nor shall any 
member of the Code Authority be liable in any manner to anvono 
for any act of any other member, officer, agent, or employee ot the 
Code Autliority. Nor shall any member of the Code Authority, 



157 

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 individual willful malfeasance or 
non-feasance. 

7. 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 interegt, the Administrator may 
require that such action be suspended to afford an opportunity for 
investigation of the merits of such action and further considera- 
tion by 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 guch action in its original or modified 
form. 

8. Powers and Duties. — Subject to such rules and regulations as 
may be issued by the Administrator, the Code Authority shall have 
the following further powers and duties, in addition to those au- 
thorized by other provisions of this Code. 

(a^ To insure the execution of the provisions of this Code and to 
provide for the compliance of the Trade with the provisions of the 
Act. 

(b) To adopt by-laws, rules and regulations for its procedure. 

(c) To obtain from members of the trade 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 trade 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 trade of any existing 
obligations to furnish reports to any Government agency. No indi- 
vidual reports shall be disclosed to any other member of the Trade 
or any other party except to such Governmental agencies as may 
be directed by the Administrator. 

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

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

(f ) 1. It being found necessar}^, in order to support the adminis- 
tration of this Code and to maintain the standarcls of fair compe- 
tition, established hereunder and to effectuate the policy of the Act, 
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 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 



158 

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 membere of the Trade. 

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

2. Each member of the Trade shall be liable for his or its equi- 
table contribution to the expenses of the maintenance of the Code 
Authority, determined as hereinabove provided, and subject to rules 
and regulations pertaining thereto, issued by the Administrator. 
Failure on the part of a member of the Trade to make such contribu- 
tion shall be a violation of this Code. Only members of the trade 
complying with the Code and contributing to the expenses of its 
administration, as hereinabove provided, shall be entitled to partici- 
pate in the selection of members of the Code Authority, or to receive 
the benefits of its voluntary activities or to make use of any emblem 
or insignia of the National Recovery Administration. 

3. The Code Authority shall neither incur nor pay any obligation 
in excess of the amount thereof as estimated in its approved budget, 
except upon approval of the Administrator first obtained; and no 
subsequent budget shall contain any deficiency item for expenditures 
in excess of prior budget estimates except those which the Adminis- 
trator shall have so approved. 

4. Failure on the part of any member of the trade to contribute 
his or its equitable contribution to the expenses of maintaining the 
Code Authority, determined as hereinabove provided, shall be a 
violation of this Code, subjectj however, to rules and regulations 
issued by the Administrator which pertain hereto. 

(g) To cooperate with the Administrator in regulating the use 
of any N.R.A. insignia solely by those persons engaged in the trade 
who have consented to and are complying with this Code. 

(h) To recommend to the Administrator any action or measure 
deemed advisable, including further fair trade practice provisions 
to govern members of the trade in their relations with each other 
or with other trades or industries; measures for industrial planning, 
and stabilization of employment; and including modifications of this 
Code which shall become effective as part hereof upon approval by 
the Administrator after such notice and hearing as he may specify. 

(i) To appoint a Trade Practice Committee Avhich shall meet with 
tlie Trade Practice Committees appointed under such other codes as 
may be related to the trade for the purpose of formulating fair ti-ade 
practices to govern the relationships between employers under this 
code and under such other codes to the end that such fair trade prac- 
tices may be proposed to the Administrator as amendments to this 
code and such otlier codes. 

(j) To provide appropriate facilities for arbitration, other than 
in labor disputes, and subject to tlie approval of the Administrator, 
to prescribe rules of procedure and rules to effect compliance with 
awards and determination. 



159 

Article VII — Sales Below Cost 

1. The standards of fair competition for the Trade with reference 
to pricing practices are declared to be as follows: 

^a) The PHncifles. — 

(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 
below the lowest reasonable cost of such product, in violation of 
subsection (c), is forbidden. 

(b) NoTTnal Provision {Cost Estimating Method). — The Code 
Authority shall cause to be formulated methods of accounting and 
cost finding and/or estimating capable of use by all members of the 
Trade and shall submit such methods to the Administrator for his 
approval. Full details and instructions concerning such methods 
shall be made available to all members of the Trade and to the 
Administrator and thereafter it is intended that all members should 
utilize the principles of such methods. 

(c) Emergency Provisions {Lowest Reasonable Cost). — When an 
emergency exists, the Code Authority may cause an impartial agency 
to investigate costs and to determine the lowest reasonable cost of 
the product affected by the emergency. Such determination shall ex- 
clude all cost elements set forth in and shall be in all respects sub- 
ject to such rules and regulations as may be issued by the Adminis- 
trator and subject to his approval or modification, after such notice 
and opportunity to be heard as he may prescribe. The Code Au- 
thority or the Administrator may, from time to time, cause such de- 
termination to be reviewed or reconsidered and appropriate action 
taken. 

(d) Definitions. — 

An " Emergency " exists whenever the Administrator determines 
that destructive price cutting is rendering ineffective or seriously 
endangering the maintenance of the provisions of this Code. 

" Destructive price cutting". 

(i) When no emergency exists, the term shall have the meaning 
declared in rules and regulations promulgated by the Adminis- 
trator 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 any impartial agency, designated or approved by the 
Administrator, shall find, 

(aa) That the price complained of is justified by existing competi- 
tion, evidence of which has been reported to the Code Authority. 

(bb) That the price complained of is justified as a method of dis- 
posal 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. 



160 
Article VIII — Trade Practice Rules 

1. MISLEADING AND " BAIT " ADVERTISING 

(a) No member of the Trade shall use advertising, whether 
printed, radio, display, or of any other nature, which is misleading 
or inaccurate in any material particular, nor shall any such person 
in any way misrepresent any goods or services (including but with- 
out limitation, its use, trade mark, grade, quality, quantity, size, 
origin, substance, character, nature, finish, material, content or prepa- 
ration) or credit terms, values, policies, services, or the nature or 
form of the business conducted. 

(1) No member of the Trade shall advertise the " free examination 
of eyes ", " free consultation ", " consultation without obligation ", 
" free advice ", or any words or phrases of similar import which 
convey the impression to the public that eyes are examined free or 
of a character tending to deceive or mislead the public, or in the 
nature of " Bait " advertising. 

(2) No member of the Trade shall use an advertisement of a 
frame or mounting which is not truthful in describing the frame or 
mounting and all its component parts. No member of the Trade 
shall advertise a frame or mounting at a price, unless it shall be de- 
picted in the advertisement without lenses inserted, and. in addition, 
the advertisement must contain a statement immediately following, 
or adjacent to the advertised price, that the price is for frame or 
mounting only, and does not include lenses, eye examination and pro- 
fessional services, which statement shall appear in tj^pe as large as 
that used for the price. No member of the Trade shall advertise 
lenses or complete glasses, viz; frame or mounting with laenses in- 
cluded, at a price either alone or in conjunction with professional 
services. 

(3) No member of the Trade shall use advertising, whether 
printed, radio, display or of any other nature, which inaccurately 
lays claim to a policy or continuing practice of generally under- 
selling competitors. 

(4) No member of the Trade shall use advertising, whether printed, 
radio, display or of any other nature, 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 trade shall use advertising whether printed, 
radio, display, or of any other nature, which states any definite 
amount of money as " down payment " and any definite amount of 
money as a subsequent Payment, be it daily, weekly, monthly, or at 
the end of any other period of time. 

(G) The Code Authority sliall make recommendations to the Ad- 
ministrator for rules and regulations concerninf^ advertising Avhich 
shall become effective upon approval of the Administrator after 
such notice and hearing as he may prescribe. 

2. Fivfit Quality. — No member of the trade shall use or dispense 
any ophthalmic products which are not of first quality in accordance 
with standards to be hereafter set up in cooperation with the Bureau 
of Standards and approved by the Administrator. 



161 

3. Price DiscnmiTiation. — No member of the trade shall discrim- 
inate directly or indirectly in his current price between jDurchasers 
of the same quality, grade, or quantity of ophthalmic products. This 
provision, however, shall not apply with respect to clergymen, re- 
ligious and charitable institutions, sales to a member's employees, or 
to persons whose inability to pay has been established by a repu- 
table social service agency. 

4. Sed'et Coinviksions. — No member of the Trade shall give, or 
offer to give, any prescriber of ophthalmic products, who has no part 
in the production, sale, handling, fitting or delivering of the oph- 
thalmic products, thus prescribed, any commission, rebate, discount, 
reward, gift, honorarium, emolument or other remuneration in the 
form of money or any other property. 

5. False Billing. — No member of the trade shall knowingly with- 
hold from or insert in any quotation or invoice any statement that 
makes it inaccurate in any material particular. 

6. Inaccurate Labeling. — No member of the trade shall brand or 
mark or package any goods in any manner which is intended to or 
or does deceive or mislead purchasers with respect to the brand, 
grade, quality, origin, size, substance, character, nature, finish, ma- 
terial, content, or preparation of such goods. 

7. No member of the trade shall secretly offer or make any pay- 
ment or allowance of a rebate, refund, commission, credit, un- 
earned discount or excess allowance, whether in the form of money 
or otherwise, nor shall any member of the trade secretly offer or 
extend to any customer any special service or privilege not ex- 
tended to all customers of the same class, for the purpose of in- 
fluencing a sale. 

8. Bribing. — No member of the trade shall give, permit to be 
given, or directly offer to give, anything of value for the purpose 
of influencing or rewarding the action of any employee, agent or 
representative of another in relation to the business of the employer 
of such employee, the principal of such agent or the represented 
party, wathout 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 herein- 
above defined. 

9. ProMhition Against Use of Subterfuge. — No member of the 
trade shall use any subterfuge to frustate the spirit and intent of 
this Code, which is, among other things, to increase employment, to 
remove obstructions to commerce, to reduce hours of work and raise 
wages to a living basis. 

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. 

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 Adminis- 



162 

trator, be modified or eliminated in such manner as may be indi- 
cated 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. 

Article X — Monopolies, etc. 

1. No provision of this Code shall be so applied as to permit 
monopolies of monopolistic practices, or to eliminate, oppress or dis- 
criminate 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 
api^roval by the President. 



Approved Code No. 454. 
RegistiT No. 1G4-09. 



O 



Approved Code No. 455 
CODE OF FAIR COMPETITION 

FOR THE 

METAL ETCHING INDUSTRY 
As Approved on June 4, 1934 



ORDER 



AppRO\^NG Code of Fair CoMrETinoN for the Metal Etchinq 
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 Metal Etching Industry, and hearings 
having been dul^ 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 vest<>d in me by Executive Orders of the Pres- 
ident, including Executive Order N'o. C543-A, dated December 30, 
1933, and otherwise; do hereby incorporate by reference said an- 
nexed report and do tind that said Code complies in all respects 
with the pertinent provisions and will promote the policy and pur- 
poses of said Title of said Act; and do hereby order that said Code 
of Fair Competition be and it is hereby approved; provided, how- 
ever, that the provisions of Article VII, Section 2, in so far as they 
prescribe a waiting period between the filing with the Code Author- 
ity (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 hereby are 
stayed pending my further Order. 

Hugh S. Johnson, 
Administrator for Imlustrial Recovery. 

Approval recommended : 
Barton W. ISIurray, 

Acting Division Adniinhtrator. 

Washington, D.C, 

June 4, 19 3 J^. 

65339° 657-26 34 (1G3) 



KEPORT TO THE PEESIDENT 

The President, 

The White Hmxse. 
Ser: This is a report on the Code of Fair Competition for the 
Metal Etching Industry as revised after the Public Hearing con- 
ducted thereon in Washington. D.C., on January 25, 1934, in accord- 
ance with the provisions of tne National Industrial Kecovery Act. 

RESUME OF THE CODE 

Article I states the purpose of the Code. 

Article II defines specinc terms used in the Code. 

Article III provides for hours of labor and rates of pay. This 
Article provides for normal working day which shall not exceed 
eight (8) hours and a normal working week which shall not exceed 
forty (40) hours, nor shall any employee work more than six (6) 
days in any one (1) week, except as provided in the following 
exemptions : 

Those engaged in executive, supervisory, or professional capacities, 
provided all receive not less than thirty-five ($35.00) dollars per 
week ; outside salesmen, and watchmen, provided the last gi-oup shall 
not be permitted to work more than fifty-six (56) hours m any 
one (1) week, and not more than six (6) days in any one (1) week. 

Exemptions are made which allow for conditions of unusual or 
peak demand, provided that no employee may work more than forty- 
eight (48) houi-s per week for twelve (l2) weeks in any one (1) year. 

Exemptions arc also made for employees engaged in emergency 
maintenance or emergency repair work involving breakdowns or 
protection of life. 

At least one and one-third (l^/^) times the normal rate shall be 
paid for hours worked in excess of eight (8) per day, or forty (40) 
per week. 

The total time that an employee may be engaged by more than one 
emph)yer must not exceed the maximum number of hours permitted 
by the Code. 

The minimum wage for employees shall be forty (400) cents per 
hour unless the rat© per hour of the same class of labor on July 15, 
1929 was less than forty (400) cents per hour, but in any case the 
rate per hour shall not be less than thirty-four (340) cents per liour. 
Female employees performing substantially the same work as male 
employees shall receive the same rate of pay as male employees. Ac- 
counting, clerical, office or sales employees shall be j^aid no less than 
fifteen (i>15.00) dollars per week. 

The Code establishes a guarant(^ed minimum hourly wage for 
labor regardless of whether the employee is compensated on a time 
rate, piece work, or other basis. 

(1»4) 



165 

It is stipulated that the wage rates in effect on June 16, 1933, 
which were in excess of the minimum provided in tlie Code, shall not 
be reduced and that there shall be an upward adjustment of such 
wages if such adjustment has not alread}^ been made. 

Article IV sets out the general labor provisions. It is provided 
that no person under sixteen (IG) years of age shall be employed, 
and no person under eighteen (18) years of age at a hazardous occu- 
pation. The procedure to be follow^ed in complying with this pro- 
vision in regard to minors is stated. 

The mandatory provisions from Section 7 (a) of the Act are 
included. 

It is stated that no member of the Industry shall reclassify em- 
ployees with the purpose of defeating the purposes of the Act. 

It is stated that where more stringent provisions in state laws re- 
garding labor are enforced, they shall be complied with. The man- 
ner in which wages are to be paid is set forth. 

Regulations concerning standards for safety and health and the 
posting of the labor provisions of the Code are included. 

It is also provided that no employee shall be dismissed for giving 
evidence concerning an alleged violation of this Code. 

Article V deals with administration. This specifies how the Code 
Authority shall be established and how the Code shall be admin- 
istered. 

Article VI provides for a uniform system of cost accounting, and 
an emergenc}^ clause concerning lowest reasonable cost. 

Article VII describes the selling schedules. 

Article VIII contains the unfair trade practices. 

Article IX states that no employer shall use any subterfuge 
to frustrate the spirit and intent of this Code. 

Article X provides against monopolies or monopolistic practices. 

Article XI contains the mandatory provisions of Subsection B of 
Section 10 of the Act, relating to modifications. 

Article XII states the effective date. 

GENERAL STATEMENT 

The principal products of this industry are etched metal name- 
plates, such as are commonly used on refrigerators, desks and other 
articles of furniture, and also the nameplates and escutcheons that 
are placed on the radiators of automobiles. Other products include 
the dials used in the instrument panels on automobiles, and many 
of the articles undergo other operations such as enameling and paint- 
ing in addition to the etching process. Many of the articles manu- 
factured by the industr}^ are purely decorative and could be classed 
as luxuries. For this reason, the industry has suffered severely from 
the effects of the dej^ression, as shown by the fact that the value of 
their sales declined eighty (80%) per cent in the period from 1929 
to 1933. 

Inasmuch as the average hours worked per employee in 1933 were 
thirty eight (38) per week, it is not anticipated that the Code's pro- 
visions for labor will increase emplojnnent at the production level 
of the industry for 1933; however, with the prospects of increased 
production in the automobile industry, one of the principal markets, 
it seems probable that substantial gains in employment will be made. 



166 

Relatively, employment has been well sustained in this industry as 
the number of workers in December, 1933, was about twenty-one 
(21%) per cent less than in 1929. The number of workers emploj^ed 
in the last six (6) months of 1933 was one thousand seven hundred 
(1,700). 



The Assistant Deputy Administrator in his final report to me on 
Baid 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 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 indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under adequate governmental sanction and siipervision, by 
eliminating unfair competitive practices, by promoting the fullest 
possible utilization of the present productive capacity of industry, 
by avoiding undue restrictions of production (except as may be 
temporarily required), by increasing the consumption of industrial 
and agricultural products through increasing purchasing power, 
by reducing and relieving unemployment, by improving standards 
of labor, and by otherwise rehabilitatin_g industry. 

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

(c) The Code as approved complies in all respects with the 
pertinent provisions of said Title of said Act, including without 
limitation Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10, thereof; and that the applicant 
group is an industrial association truly representative of the afore- 
said Industr}'; 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 
gaid Code. 

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

Hugh S. JoirNSON, 

Administrator . 
June 4. 1934. 



CODE OF FAIK COMPETITIOX FOE THE METAL 
ETCHING INDUSTEY 

Article I — PuRrosE 

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

Article II — Defixitions 

The following terms and words are used in this Code to mean 
and include : 

1. Industry. — Means and includes the business of manufacture and 
sale by the manufacturer of completely fabricated metal products 
when etched, embossed, printed, lithographed, enameled (air dried, 
baked or fired) by processing necessary to the completion of the 
products of this Industry, such as name plates, dials, escutcheons, 
automobile plates — excluding embossed metal vehicle tax and auto- 
mobile license plates. 

2. Employee. — Any person engaged in any phase of the Industry 
in any capacity, receiving compensation for his services, irrespective 
of the method of payment of his compensation. 

3. Employer. — Anyone by whom any such employee is compen- 
sated, or employed. 

4. Member of the Industry. — Any natural person, partnership, 
corporation, trust, association, trustee, trustee in bankruptcy, 
receiver or other form of enterprise engaged in said Industry, either 
as an employer or on his or its own account. 

5. Association. — The Metal Etchers Association, a voluntary, 
unincorporated association. 

6. President., Act., and Administrator. — Mean respectively the 
President of the United States, Title I of the National Industrial 
Eecovery Act, and the Administrator for Industrial Eecovery. 

Article III — Hours of Labor and Eates or Pay 

Section 1. Hours of Labor. — 

(a) No em.ployee ^hall be permitted to work more than forty 
(40) hours in any one week; Provided that, when necessary 
to meet unusual or peak demand, any employee may be permitted 
to work not in excess of forty-eight (48) hours in any one week for 
twelve (12) weeks in any one (1) year. The provisions of this 
section shall not apply to the following employees : 

(1) Executives^ professional employees or supervisors who receive 
not less than thirty-five dollars ($35.00) per week; and outside 
salesmen ; 

(2) Watchmen, who may be permitted to work fifty-six (56) 
hours in any one (1) week, but not more than six (6) days in any 
one (1) week; 

(107) 



168 

(b) Provided that, any employee other than those specified in 
paragraphs (1) and (2) above working beyond eight (8) hours in 
any one (1) day or forty (40) hours in any one (1) week shall be 
paid not less than at the rate of one and one-third (l^s) times the 
normal rate. A normal day shall not be in excess of eight (8) hours. 

(c) The maximum hours fixed in the foregoing sub-paragraphs 
of this Section 1 shall not apply to any employee on emergency main- 
tenance or emergency repair work involving breakdowns or protec- 
tion of life and property, but in any such special case, at least one 
and one-third (IVs) the normal rate shall be paid for all hours 
worked in excess of eight (8) hours in &nj one (1) day or forty (40) 
hours in any one (1) week. 

(d) No employer shall knowingly permit any employee to work 
for any time, which, when totaled with that already performed for 
another employer, or employers, in this Industry, exceeds the maxi- 
mum number of working hours permitted in this Code. 

(e) No employee shall be permitted to work more than six (6) 
days in any seven (7) day period; provided that this provision 
shall not apply to those employees specified in paragraph (1) of 
sub-section (a) of this Section 1, and those employees engaged in 
emergency repair or maintenance work as referred to in sub-section 
(c) of this Section 1. 

Section 2. Minim/ii/m Wages. — 

(a) The minimum rate which shall be paid by employers in the 
Industry to any of the employees shall be at the rate of fort}'^ (40) 
cents per hour, unless the rate per hour of the same class of labor on 
July 15, 1929, was less than forty (40) cents per hour, in which case 
the rate per hour shall not be less than thirty-four (34) cents per 
hour. 

(b) Provided, no accounting clerical, office or sales employees shall 
be paid less than at the rate of fifteen dollars ($15.00) per week. 

(c) This Article establishes a guaranteed minimum hourly rate 
of pay, which shall apply, irrespective of whether an employee is 
actually compensated on a time rate, piece-work or other basis. 

(d) Members of this Industry shall not reduce hourly or weekly 
rates of compensation for employment, according to the basis of 
compensation, which compensation was, prior to June 16, 1933, in 
excess of the minimum wage herein set forth, notwithstanding that 
the hours of work in such employment may be reduced; and all 
members of this Industry shall increase the pay of all employees in 
excess of the minimum wage, by an equitable adjustment of all pay 
schedules, if such adjustments have not been made prior to the 
effective date of this Code. All such adjustments made after Juno 
16, 1933 shall be reported to the Code Authority and to the 
Administrator. 

(e) Female employe/'S performing substantially the same work as 
male employees shall receive the same rate of pay as male employees. 

AR-ncivE ly — General Laror Provisions 

Section 1. Minors. — 

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 



169 

or dangerous to health. In any State, an employer shall be deemed 
to have complied with this provision as to age if he shall have on 
file a valid certificate, or permit, duly issued by the Authority in 
such State empowered to issTie employment or age certificates, or 
permits, showing that the employee is of the required age. 

Section 2. Statutoin/ Provisions.. — 

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 snail 
be free from the interference, restraint, or coercion of employers 
of labor, or their agents, in the designation of such representatives 
or in self-organization or in other concerted activities for the pur- 
pose of collective bargaining or other mutual aid or protection ; 

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

(c) That employers shall compb/ with the maximum hours of 
labor, minimum rates of pay, and other conditions of employment, 
a])proved or prescribed by the President. 

Section 3. Redassijication of Employees. — 

No employer shall reclassify employees or duties of occupations 
performed, or engage in any subterfuge, for the purpose of defeat- 
ing the i^urposes of the Act or the provisions of this Code. 

Section 4. Application of State Laws. — 

No provision in this Code shall supersede any State or Federal 
law wliich 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, or insurance, or fire protection, 
than are imposed b}' this Code. 

Section 5. No employee shall be dismissed by reason of making 
a complaint or giving evidence with respect to an alleged violation 
of this Code. 

Section 6. Method of Wage Payment. — 

(a) Each employer shall make pnjnnent of all wages due in law- 
fid currency or by negotiable check therefor, payable on demand. 
These wages shall be exempt from any payments for pensions, insur- 
ance, or sick benefits other than those voiuntaril}^ paid by the wage 
earners or required by State laws. Yv'ages shall be paid by em- 
ployers to employees at the end of every two (2) weeks' period, or 
oftener if required by State or Federal law, and salaries shall be 
paid by employers to those so compensated at the end of every month, 
or oftener if required by State or Federal law. No employer shall 
withhold payment of wages or salaries lawfully due to employees 
unless the payment of such wages or salaries be subject to any restric- 
tion imposed by State or Federal laws. 

(b) The employer or his agents shall accept no rebates, directly 
or indirectly, on such wages, nor give anything of value, or extend 
favors to any person for the purpose of infiuencing rates of wages 
or the working conditions of his employees. 

Section 7. Standards for Safety and Health., — 

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



170 

(b) 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 8. Posting. — Each employer shall post, and maintain, in 
conspicuous places accessible to all employees, the provisions of the 
Code relating to hours, wages, and conditions of employment, and 
such other notices and bulletins as the Administrator may from time 
to time require. 

Article V — Administration 

Section 1. A Code Authority is hereby established to administer 
this Code, and shall consist of not less than live (5) members elected 
by the members of the Industry. The Administrator, in his discre- 
tion, may appoint not more than three (3) additional members 
thereof to serve without vote and without compensation from the 
Industry. ]\Iembers of the Code Authority elected by the members 
of the Industry shall be elected to serve for one (1) yeiir and until 
their successors shall have been elected and qualified. No two mem- 
bers of the Code Authority shall be affiliated with any single member 
of the Industry. Vacancies occurring in the Code Authority shall be 
filled in the same manner as that provided for their election. Each 
elected member of the Code Authority shall be entitled to one vote. 

Section 2. 

(a) A meeting of the members of the Industry sliall be called as 
Boon as possible after the effective date of this Code by the Executive 
Manager of the Association, who shall give reasonable notice thereof 
by registered mail, but not less than ten (10) days in advance, to all 
ascertainable members of the Industry, statmg therein the time, 
place, and purpose of the meeting. Such meeting shall be for the 
purpose of electing members of the Code Authority who shall repre- 
sent the Industry, and for the transaction of such other business 
pertaining to the provisions of this Code as may be specifically 
referred to in such notice. 

(b) Immediately after said meeting, the elected member^ of the 
Code Authority shall hold a meeting and elect a Chairman thereof. 

(c) The Chairman of the Code Authority, upon his own initia- 
tive, may call meetings of the Code Authority, and shall be required 
to do so upon the recjuest of two (2) members' of the Code Authority. 
The Code Authority, upon its own initiative, may call a meeting 
of all of the members of the Industry, and the Chairman of the 
Code Authority, upon the request of five (5) members of the In- 
dustr-y, shall call a meeting of all of the members of the Industry. 

(d) Each memljcr of the Industry shall be entitled to one (1) 
vote at any industry meeting, at which the member may be repre- 
sented in ])erson or by proxy, except that at elections any member 
of the Industry not present in person or by prozy may cast his 
vot« by letter ballot and shall be deemed to be reiiresented thereby; 
and a majority vote in numbers of members and also in dollar 
value of sales of the products of the Industry for the last preceding 
calendar year of those member,s who are so represented at any 
fcuicli meeting shall bo necessary for the determination of any 
question. 



171 

(e) 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 constitution, 
by-laws, regulations, and any amendments when made thereto, to- 
gether 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 3. The Code Authority may adopt its own rules of pro- 
cedure and may appoint such agents or agencies as it may deem 
necessary properly to supervise and administer the provisions of 
this Code. Provided, that nothing herein shall relieve the Code 
Authority of its responsibilities under this Code and that such 
agents or agencies shall at all times be gubject to, and comply with, 
the provisions hereof. 

SECTioisr 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 prescribe 
such hearings as he may deem proper, and thereafter if he shall find 
the Code Authority is not truly representative of the Industry, or 
does not in other respects comply with the provisions of the Act, 
he may require an appropriate modification of the method of selec- 
tion of the Code Authority. 

Section 5. The Code Authority may 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 this 
Industry. 

Section 6. The Code Authority may make recommendations to the 
Administrator pertaining to the provisions of this Code and addi- 
tional fair trade practice provisions to govern members of the In- 
dustry in their relations with each other, and, also, measures for 
industrial planning, including stabilization of employment. 

Section 7. The Code Authority shall require each member of the 
Industry to furnish to such impartial agency as the Code Authority 
may designate, reports, statistical data and information relating to 
vrages, hours of labor, conditions of emploj'ment, volume of produc- 
tion, volume of sales, in units and/or dollars, and other matters, 
useful to the members of the Industry and pertinent to the super- 
vision and administration of this Code. Such reports, data and 
information shall be compiled and made available to the members 
of the Industry and the Administrator for such periods, in such 
form, and at such time, or times, as determined by the Code Authority 
or as the Administrator may require. In addition thereto, members 
of the Industry shall furnish to such Federal and State agencies as 
tiiG Administrator may designate, such information as the Admin- 
istrator m.ay deem necessary for the purposes recited in Section 
3 (a) of the Act, and nothing contained in this Code shall relieve 
any member of the Industry from any existing obligations to furnish 
reports to any Government agency. 

Section 8. All reports, data and information required by this 
Code to be furnished by the members of the Industry to the Code 
Authority shall be sworn to by the members, if requested by the Code 
Authority, and each member's report shall be confidential and not 



172 

disclosed to any other member of the Industry except in summary; 
Provided, that where summary information in effect designates 
the identity of any member's reports, it shall not be revealed to any 
member of the Industry, but shall be made available to the Admin- 
istrator upon his request, and may be used to facilitate the adminis- 
tration of this Code. 

Section 9. Upon complaint that a member of the Industry has 
violated a provision of this Code, the Code Authority may require, 
and such member shall furnish forthwith, a complete and accurate 
report of the facts and figures concerning such alleged violation. If 
the Code Authority shall determine that substantial doubt exists as 
to the accuracj^ of such report, or of any other report filed pursuant 
to the provisions of this Code, so much of the pertinent books, rec- 
ords and papers of such member as may be required for the determi- 
nation of the accuracy of such report may be examined by an impar- 
tial agency, agreed upon between the Code Authority and such 
member, or failing agreement, appointed by the Administrator. 
Such examination shall be made pursuant to rules and regulations 
pertaining thereto which shall be adopted by the Code Authority and 
which shall be subject to the disapproval of the Administrator. Such 
impartial agency shall report the result of all such examinations 
forthwith upon the completion thereof to the Administrator or to 
such agency as he may designate. The provisions of this section 
are required for the proper and efficient administration of this Code 
and the effectuation of the purposes of the Act. 

Section 10. 

(A) It being found necessary, in order to support the adminis- 
tration 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 : 

(1) 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 ; 

(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 budget of its estimated expenses for the foregoing 
purposes, and (b) an equitable basis upon wdiich the funds neces- 
saiy to supi:)ort 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 })y 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 in(Uistry complying with the Code and 
contributing to the expens<>s of its administration as provided in 
Section (A) ho-eof shall be entitled to participate in the selection of 
the members of the Code Authority or to receive the benefit of its 
volujitary adivitif^.s or to make use of any emblem or insignia of the 
National Kecovery Administration. 



173 

Section 11. Nothing contained in this Code shall constitute tho 
members of the Code Authority partners for any purpose. Nor shall 
any member of the Code Authority be liable in any manner to anyone 
for any act of any other member, officer, agent or employee of the 
Code Authority. Nor shall any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties hereunder, 
be liable to anyone for any action or omission to act under this Code, 
except for his own wilful malfeasance or non-feasance. 

Section 12. If the Administrator shall determine that any action 
of the Code Authority, or any agency thereof, may be unfair, unjust 
or contrary to the public interest, the Administrator raa}^ require that 
such action be suspended to afford an opportunity for investigation of 
the merits of sucli action and further consideration by such Code 
Authority, or agency thereof, 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 VI — Accounting and Costing 

Section 1. The Code Authority shall cause to be formulated 
methods of accounting and cost finding and/or estimating capable 
of use by all members of the Industrj^ and shall submit such methods 
to the Administrator for review and possible disapproval. Full 
details and instructions concerning such methods shall be made 
available to all members of the Industry and to the Administrator 
and thereafter ail members shall utilize the principles of such 
methods. 

Section 2. Wlien 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 en- 
danger tho maintenance of the provisions of this Code, the Code 
Authority may cause to be determined the lowest reasonable cost 
of the products of this Industry, such determination to be subject 
to such notice and hearing as tlie Administrator may reo.uire. 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 lovrest 
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. 

When it appears that conditions have changed, the Code Au- 
thority, upon its own initiative, or upon the request of any inter- 
ested party, shall cause the determination to be reviewed. 

Article VII — Selling Schedules 

Section 1. As soon as possible after the effective date of this 
Code, the Code Authority shall determine a date on or before which 
each member of the Industry shall file with such agent or agency, 
not affiliated with any member of the Industry, as designated by 
the Code Authority, and in accordance therewith all members shall 



174 

file with such agency, price schedules, price lists, and/or discount 
sheets covering all products of the Industry manufactured and sold 
by them respectively, including therein prices, terms, discounts, and 
all conditions relating to, or in anywise affecting, any sale of the 
same. 

Section 2. Each member of the Industry shall file revised sched- 
ules, lists, and/or discount sheets, or changes therein, when and 
if made, with the same agency mentioned in the next preceding 
Section 1, three (3) business days, exclusive of the date of the re- 
ceipt of the same b}^ said agency, in advance of the effective date 
of such revisions or changes, except that when filed to meet a com- 
petitor's previously filed revisions or changes, the same may become 
effective concurrently with the effective date of such competitor's 
filed revisions thereof or changes therein.^ 

Section 3. The agent, or agency, designated by the Code Author- 
ity to receive such price schedules, price lists and/or discount sheets, 
and revisions thereof, shall promptly publish and distribute copies 
of the same to all members of the Industry making similar products 
and make such lists available to all other interested parties. 

Section 4. No member of the Industry shall sell any of the prod- 
ucts of the Industry at a price, or prices, or upon terms and/or other 
conditions of sale at variance from those stated in his price schedules, 
price lists, and/or discount sheets, or revisions thereof, as published 
and filed as hereinabove provided. 

AirncLE VIII — Unfair Trade Practices 

The following acts shall constitute Unfair Trade Practices and 
none shall be used by any member of the Industry. 

1. Interference toith Existing Contracts. — Knowingly to interfere 
with an existing contract for the sale and purchase of products of 
this Industry; or to induce, attempt to induce, or assist a party to 
break an existing contract for the sale of any products of this Indus- 
try, or to solicit or accept an order for any such goods, after the con- 
tract therefor has been placed with another selling member of this 
Industry, or to offer lower prices or better terms to induce or attempt 
to induce a revision of any such existing contract. 

2. Commercial Bribery. — To give, permit to be given, or directly 
or indirectly offer to give anythmg of value for the purpose of in- 
fluencing or rewarding the action of an emploj^ee, agent or repre- 
sentative or 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 

Erovision shall not be construed to prohibit free and general distri- 
ution of articles conmionly used tor advertising, except so far as 
such articles are actually used for commercial bribery as hereinabove 
defined. 

3. Defamation of Competitors. — To make, cause, or permit to bo 
made, or published, any false statements or misre]>resentations of, 
or concerning, the business, policies, methods, values, credit terms, 
services or products of a competitor. 

' See paragraph 2 of order approving this Code. 



175 

4. Enticing Employees. — To employ or. entice emploj'-ees of a com- 
petitor with the purpose and effect of unduly hampering, injuring 
or embarrassing said competitor. This paragraph is not intended 
to apply to a case where an emploj^ee of his own initiative may seek 
another position or different emploj^nent. 

5. False Advei'tising. — To make, cause, or permit to be made, or 
published, any false, untrue or deceptive statement by way of adver- 
tising or otherwise, concerning any grade, quality, substance, charac- 
ter, origin or preparation of any product of this Industry. 

G. Mi-sJ) ran ding. — To falsely mark or brand packages or products 
of this Industry, for the purpose, or with the effect, of misleading or 
deceiving purchasers or others with respect to quality, quantity, char- 
acter, grade or substance thereof. 

7. False Invoicing. — To withhold from, or insert in, invoice facts 
which would make the invoice a false record, v.diolly or in part, of 
the transaction in question, or make any arrangement which would 
contemplate payment or settlement contrary to the face of the 
invoice. 

8. Post-dating or Pre-dating Contract or Invoice. — To post-date 
or pre-date contracts or invoices covering products of this Industry. 

9. Guaranteeing Against Price DecJine. — To guarantee against 
price decline, except as the same may be limited to the price decline 
of products of the particular member of the Industry concerned, in 
which latter event such guarantee shall apply only to goods which 
are not delivered. 

10. Secret Rebates. — To secretly directly or indirect!}'' offer or make 
any payment or allowance of a rebat-e, refund, commission, credit, 
unearned discount or excess allowance, whether in the form of money 
or otherwise, or for the purpose of influencing a sale, secretly offer 
or extend to an}^ customer any special service or privilege not 
extended to all customers of the sswne class. 

11. Terms. — To grant or allow terms, or to fail to charge interest 
on overdue accounts in connection with the sale of any products of 
this Industry, other than as follows : 

Net Cash 30 da3's, or one per cent (1%) discount for Cash for 
payment as follows : 

(a) Bills dated the first (1st) to the fifteenth (1.5th) of the month 
inclusive, if paid on or before the twenty-fifth (25th) of the month; 

(b) Bills dated the sixteenth (16th) to and including the last day 
of the month, if paid on or before the tenth (10th) of the following 
month. 

The date of payment of an invoice is the date on which the check 
is mailed as indicated by post mark, unless the check carries a later 
date, in which case the date on the check is the date of payment. 

On accounts not paid within thirty (30) days from the end of the 
month, on which bills are rendered, interest shall be charged at not 
less than the rate of six per cent (6%) per annum or the legal maxi- 
mum, whichever is lower, beginning on the first (1st) day of the 
month following the date on which pajnnent was due, but no interest 
amounting to less than one dollar ($1.00) need be charged. Bills for 
such interest shall be rendered at least monthly. 



176 

Article IX 

Xo emploYer shall use any subterfuge to frustrate the spirit and 
intent of this Code. 

AbTICLE X MOXOPOLIES 

Xo provision of this Code and/or its amendments shall be applied 
EO as to promote monopolies, or monopolistic practices, or to elimi- 
nate, oppress, or discriminate against small enterprises. 

AkTICLE XI MODIFICAIION 

Sectiox 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. 

Sectiox 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 on approval of the Administrator. 

Aeticle XII — Effecti\'e Date 

The effective date of this Code shall be the second Monday after 
this Code shall have been approved by the President. 

Approved Code Xo. 455. 
Registry No. 1620-01. 



Approved Code No. 456 
CODE OF FAIR COMPETITION 

FOR THE 

ICE CREAM CONE INDUSTRY 

As Approved on June 4, 1934 



ORDER 



AppRO^^xG Code of Fair Competition for the Ice Cream Co>rE 
Industry 

An application havin^^ been duly made pursuant to and in full 
compliance ^vith 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 Ice Cream Cone 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 Xo. 6513-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 Subsection (c) ot Section 1, Article YII 
and of Section 10, Article VIII. shall not become effective, and are 
hereby stayed, unless I shall by my further order otherwise determine. 

Hugh S. Johnson, 
Admhustrator for Industrial Recovery. 

Approval recommended : 
Armin W. Riley, 

Division Administrator. 

Washington, D.C, 



(177) 



REPORT TO THE PRESIDENT 

The PRESroENT, 

The White House. 
Sir : This a report on the Code of Fair Competition for the Ice 
Cream Cone Industry. The hearing on this Code was conducted 
in Washington, D. C., on March 26, 1934, in accordance with the 
provisions of the National Industrial Recovery Act. 

LABOR PROVISIONS 

This Code provides that no employee shall be permitted to work 
in excess of forty (40) hours in any week or nine (9) hours in any 
day: provided, however, that for a total of twelve (12) consecu- 
tive weeks in any calendar year, employees may be permitted to 
work not in exce,ss of forty-eight (48) hours in any such week 
nor more than ten (10) hours in any day, in order to take care 
of seasonal requirements. As a check on the abuse of this privilege 
time and one-third must be paid for all hours worked over forty 
(40) in any week during such peak period. 

From the above provisions there are excepted : employees en- 
gaged in an executive, supervisory and administrative capacity who 
regularly receive thirty-five ($35.00) dollars or more per week; 
outside salesmen; employees engaged on emergency maintenance 
and repair work, provided they are paid time and one-third for 
overtime in excess of forty (40) hours in any week and nine (9) 
hours in any day; watchmen, who may not work in excess of fifty- 
six (56) hours in any week; and doliverymen and salesmen who 
deliver who may work not in excess of forty-eight (48) hours in 
any week nor more than ten (10) hours in any day. 

No employee shall be permitted to work more than six (0) days 
in any seven (7) day period. 

The Code provides minimum wages for office employees of sixteen 
($16.00) dollars per week in cities of 500,000 population or over, and 
ranges dovv'n to fourfceon ($14.00) dollars per week in places under 
250,000 population. Office bovs and messengers may be employed at 
two ($2.00) dollars per wecfc below the above minimum, but the 
number of such employees in each establishment is limited to five per 
cent (5% ) of office employees. Watchmen are to be paid not less than 
eighteen ($18.00) dollars per week. All other employees shall not 
be paid less than forty {AQ<t) cents per liour, except that employees 
engaged in the " rolled cone " phase of the Industry may be paid 
thirty-seven and one-half (37^0) cejits per hour, and with the fur- 
ther exception that employeeH in the South may be ]:>aid two and 
one-half (2^/^^*.) cents per hour less than the a])ove minima. 

The Cofle also includes the recommondod standard clauses on child 
labor, piece work compensation, reclassification of employees, appli- 

(178) 



179 

cation of state laws, and a satisfactory clause covering standards of 
safety and health. 

OTHER pro\t:sions 

The Ice Cream Cone Industry has suffered greatly from price 
cutting, which in turn has brought on the market cone products of 
inferior quality. In an effort to stabilize and rehabilitate this Indus- 
try, provision is made in this Code to prevent destructive price 
cutting by the declaration of an emergency. Full control is lodged 
in the Administrator in order that all parties at interest shall be 
protected in its use. Another provision provides for the Industry, 
in cooperation with the appropriate government agency, to pro- 
mulgate consumer grades and quality standards. 

ECONOMIC EFFECT OF THE CODE 

There are some two hundred (200) manufacturers of ice cream 
cone products, the large majority of Avhich are small businesses that 
started as a family affair and are still largely conducted on the same 
basis. 

Estimtes based on questionnaires to the Industry place production 
at over $2,110,000 in 1929, and at over $1,870,000 in 1933. On a unit 
basis for the sam.e 3- ears, production of cones amomited to approxi- 
mately 700,000,000 and 650,000,000 respectively. 

Careful estimates bv the Division of Economic Research and Plan- 
ning place emplovnient at 2,000 in 1928, at 1,350 in 1929, at 
1,250 in 1932 and for 1933 at 1,.500 persons. 

In 1929 hours of work averaged fifty and four-tenths (50.4) 
per week for both male and female employees in the North, and 
forty-four and four-tenths (44.4) hours per week in the South. 
Allowing for the twelve (12) week peak period, average-maximum 
weekly hours are limited to forty-one and eight-tenths (41.8) in this 
Code. Such hours restriction should increase employment by at 
least fourteen percent (14%) over that reported for 1932. 

In the North employees have been receiving an averaf^e of twenty- 
six and one-half (26yj?i) cents per hour. Under this Code such em- 
ployees must be raised to at least thirty-seven and one-half (37i/^^) 
cents per hour if engaged in the " rolled cone " phase of the Industry, 
and to forty (400) cents per hour in other phases of the Industry. 
In the South employees have been receiving an avera^^e of nineteen 
and one-half (191/^0) cents per hour and, under this Code their 
hourly earnings must be increased to at least thirty-five (35^) cents 
if engaged in the " rolled cone " phase of the Industry and to 
thirty-seven and one-half (371/2^) cents if otherwise engaged. 

The increase in hourly rates, as noted above, should increase the 
total payroll for the Industry about one hundred thousand ($100,- 
000.) dollars or twenty-two percent (22%) over the wage bill for 
1932. Spread in employment, as previously indicated, should in- 
crease total wages an additional twelve percent (12%). 

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



180 

I find that: 

(a) Said Code is well desig: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 
commerce which tend to dimJnish 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 fair competitive practice, by promoting the fullest pos- 
sible utilization of the present productive capacity of industries, by 
avoiding undue restriction of production (except as may be tempo- 
rarily required), by increasing the consumption of industrial and 
agricultural products through increasing purchasing power, by re- 
ducing and relieving unemployment, by improving standards of 
labor, and by otherwise rehabilitating industry. 

(b) Said 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 vfithout limita- 
tion Subsection ^a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) oi Section 10 thereof; and that the applicant associa- 
tion is a trade association truly representative of the aforesaid In- 
dustry ; and that said association imposes no inequitable restrictions 
on admission to membership therein. 

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

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

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

For these reasons the Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Ad?ninistrator, 
June 4, 1931 



CODE OF FAIR COISIPETITION FOR THE ICE CREAM 
CONE INDUSTRY 

Articlb I — Purposes 

To effect the policies of Title I of the National Industrial Recov- 
erj Act, this Code is established as a Code of Fair Competition for 
the Ice Cream Cone Industry, and its provisions shall be the stand- 
ards of fair competition for such Industry and shall be binding upon 
every member tliereof. 

Article II — Definitions 

Section 1. As used in this Code : 

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

(b) The term " Ice Cream Cone Industry ", or " Industry " means 
and includes the manufacture of ice cream cone products and the 
sale thereof by the manufacturer, and such related branches or sub- 
divisions as may from time to time be included under tlie provisions 
of this Code by the President of the United States, after such notice 
and hearing as he may prescribe. 

(c) The term " ice cream cone products ", or " products " shall 
mean and include all pressed and/or rolled cones, cups, sandwich 
wafers and waffles and/or other forms manufactured for use as edi- 
ble containers of ice cream, and which have as their material base a 
batter mix of flour, shortening and other edible ingredients. 

(d) The term "employee" means anj- person engaged in the In- 
dustry in any capacity receiving compensation for his services, irre- 
spective of the nature or method of payment of such compensation, 
except a member of the Industry. 

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

(f ) The term " member of the Industry " or " member " includes, 
but without limitation any individual, partnership, association, cor- 
poration, or other form of enterprise and their respective subsidi- 
aries and/or affiliates engaged in the Industiy, either as an employer 
or on his or its own behalf. 

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

(h) The term " outside salesman " means any employee who is 
engaged not less than seventy-five (75) percent of his working hours 
outside of the establishments of his employer, and who performs 
exclusively selling functions and does not regularly deliver ice cream 
cone products. 

(ISl) 



182 

(i) The term " deliveryman " means any employee who is engaged 
exclusively in tlie delivery of ice cream cone products. 

(j) The term "route delivery salesman" means any employee 
who regularlj' delivers ice cream cone products that he sells. 

(k) " Institute " shall mean the Ice Cream Cone Institute of 
America. 

(1) The term " buver " means any commercial buyer as distin- 
guished from the ultimate consumer. 

(m) 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 week or nine (9) hours in any clay, with the 
following exceptions : 

(a) Executive, supervisory and administrative employees, pro- 
vided that they regularly receive thirty-five ($35.00) dollars or 
more per week, and outside salesmen. 

(b) Employees engaged on emergency maintenance or emergency 
repair work involving break-downs or the protection of life or prop- 
erty, provided that they shall be paid not less than at a rate of one 
and one-third times (l^/^) their normal hourly rate for all hours 
worked in excess of the maximum hours herein provided. 

(c) Watchmen, provided, however, that they shall not be per- 
mitted to work more than fifty-six (56) hours in any week. 

(d) Deliverymen and salesmen who deliver, provided, however, 
that they shall not be permitted to work more tlian forty-eight (48) 
hours in any week, nor more than t«n (10) hours in any day. 

(e) During any peak period employees may be permitted to work 
not in excess of forty -ei^ht (48) hours in any week nor more than 
ten (10) hours in any aay, pro^^ded, further, that all employees 
permitted to work such excess hours over forty (40) hours in any 
one weelv shall be compensated for such excess hours at not less 
than at a rate of time and one-third their normal hourly rate. Such 
peak period shall be limited to any twelve (12) consecutive weeks 
in any calendar year. 

Section 2. No employee shall bo permitted to work more than six 
(6) days in any seven (7) day period. 

Section 3. No employer shall knowingly permit any person or 
employee to work for any time Avhich when totaled with that already 
performed with another employer or employers exceeds the maxi- 
mum herein permitted. 

Article IV — Wages 

Section 1. No person employed in clerical, accounting, or other 
office work shall be paid less than v„t the following schedule of 
wages : 

$16.00 per week in cities of over 500,000 population and the 

immediate trade areas thereof; or, 
$15.00 per week in cities between 250,000 and 500,000 population 

and the immediate trade areas thereof; or, 
$14.00 per week in other places; 



183 

except that office boys and messengers may be paid at a rate of two 
dollars ($2.00) below the above minima; provided, however, that 
where more than one employee is classified and compensated as an 
office boy or messenger, not more than five per cent (5%) of the 
total number of office employees shall be so classified and compen- 
sated in each establishment. 

Section 2. No watchman shall be paid less than at a rate of 
eighteen dollars ($18.00) per week. 

Section 3. No employee, other than those covered in Sections 1 
and 2 of this Article, shall be paid less than at a rate of forty cents 
(400) per hour, except that employees engaged in the " rolled cone " 
phase of tlie Industry may be paid at not less than a rate of thirty- 
seven and one-half cents (371/2^) per hour, provided that in the fol- 
lowing states: Virginia, Mississippi, North Carolina, Louisiana, 
South Carolina, Texas, Tennessee, Arkansas, Alabama, Oklahoma, 
Florida, Kentucky, and Georgia, employees may be paid not less 
than at a rate of two and one-half cents (2i/2^) per hour below the 
minimum rates herein specified. 

Section 4. This Article establishes minimum rates of pay irre- 
spective of whether an employee is actually compensated on a time 
rate, piece work or other basis. 

Section 5. No employee now compensated 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 6. Female emi^loyees performing substantially the same 
work as male emplo^'ees shall receive the same rate of pay as male 
employees. 

Section 7. A person whose earning capacity is limited because of 
age or physical or mental handicap may be employed on light work 
at a wage below the minimum established by this Code if the em- 
ployer obtains from the Authority designated by the United States 
Department of Labor a certificate authorizing his employment at 
such wages and for such hours as shall be stated in the certificate. 
Each employer shall file with the Code Authority a list of all such 
persons employed by him, showing the wages paid to, and the maxi- 
mum hours of work for such employees. 

Section 8. Each employer shall file with the Code Authority a 
complete statement showing the number of hours worked and the 
rates of pay for all employees working pursuant to the provisions 
of subsections (b) and (e) of Section 1 of Article III. 

Article V — General Labor Provisions 

Section 1. Child Labor. — No person under sixteen (16) years of 
age shall be employed in the Industry. No person under eighteen 
(18) years of age shall be employed at operations or occupations 
which are hazardous in nature or dangerous to health. The Code 
Authority shall submit to the Administrator before July 1st, 1934, 
a list of such operations or occupations. In any State or other juris- 
diction an employer shall be deemed to have complied with this pro- 
vision as to age if he shall have on file a certificate or permit, duly 
signed by the Authority in such State or other jurisdiction empow- 



184 

ered to issue employment or age certificates or permits showing that 
the employee is of the required age. 

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

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

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

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

Section 3. No employer shall reclassify employees or duties of 
occupations performed or engage in any subterfuge for the purpose 
of defeating the purposes or provisions of the Act or of this Code. 

Section 4. Every employer shall provide for the safety and health 
of employees during the hours and at the places of their employ- 
ment. Standards for safety and health shall be submitted by the 
Code Authority to the Administrator wdthin six (6) months after 
the effective date 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 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. Wages shall be exempted from fines; and rebates, 
charges and deductions; except rebates, charges and deductions vol- 
untarily made by employees or required by law for pension, insur- 
ance, or for benefit funds. No employer shall withhold wages except 
upon service of legal process or other papers lawfully requiring such 
withholding. Deductions for other purposes not heretofore stated 
may be made only pursuant to a contract in writing which is kept on 
file by the employer for at least six months after the termination of 
sucli contract. 

Section 7. Enn^ployment of Relatives. — Employers shall not per- 
mit employees by reason of relationship of employer and employee 
other than that of marriage, to be exempt from the provisions of 
this Code; and any person working for a member of the Industry, 
otlicr than the wife or husband of said member, shall be considered 
an "cmploj^ee" as herein defined. Partners and stockholders of 
members of tJie Industry and othei's having proprietary interests in 
members of the Industry sliall not, if em1)loyed thereby, be exempt 
from hour, wage, and general labor provisions of this Code. 

Section 8. (a) In the event the maximum weekly working hours 
of any employee shall, under the provisions of this Code, be reduced 
by n(jt more than sixteen and tAvo-thirds (1C%%) per cent under 
the av<'rage of the weekly working hours worked by said employee 
during the period from January 1,' 1933, to May 1, 1933, the wages of 



185 

said employee shall not be reduced below the average weekly wage 
paid said employee during said period from January 1, 1933, to 
May 1, 1933. 

(d) In the event the maximum weekly working hours of any 
employee shall, under the provisions of this Code, be reduced by 
more than sixteen and two-thirds (16% 7c) per cent under the 
average weekly working hours worked by said employee during the 
period from January 1, 1933, to May 1, 1933, the hourly wage rate 
of said employee shall be equitably readjusted upward, provided that 
in every such case the hourly wage rate of said employee shall be 
increased by at least twenty (20) per cent. 

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

Section 9. All emplo3'ers shall post and keep posted copies of this 
Code in conspicuous places accessible to all employees. Every mem- 
ber 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. 

Section 10. Employers shall make payment of all wages due in 
lawful currency or by negotiable checks payable on demand. All 
contracts of employment shall prescribe payment of wages at least 
as often as every two weeks and salaries as often as everj^ month. 

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

part a — ORGANIZATION AND CONSTITUTION 

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

(a) The Ice Cream Cone Institute of America as proponents of 
this Code are hereby designated as the agency to conduct an elec- 
tion of the members of the Code Authority within fifteen (15) days 
after the effective date of this Code. Members so elected are to hold 
office for one (1) year or until their successors are elected as herein- 
after provided. Vacancies in membership shall be filled for unex- 
pired terms in the same manner as provided for elections in sub- 
section (d) of this Section. 

(b) The Code Authority shall consist of five (5) members elected 
by the Ice Cream Cone Institute of America and two (2) members 
elected by members of the Industry not members, or affiliated with 
members, of the Ice Cream Cone Institute of America, provided, 
however, that at least one, but not more than one, of the members 
of the Code Authority shall represent a member of the Industry en- 
gaged solely in the " rolled cone " phase of the Industry and that at 
least one, but not more than one of the members of the Code Author- 
it^y shall be a member of the Industry who represents the " hand 
operated pressed cone " phase of the Industry. 

(c) Each member of the Industry shall be entitled to one vote 
for each of the members of the Code Authority he is entitled to 
vote for in accordance with the provisions of subsection (b) of this 
Section. At each election voting may be by person, by proxy, or 
by mail ballot. 



186 

(d) Within ninety (90) days after the effective date of this Code, 
the Code Authority shall submit for approval of the Administrator, 
a plan for the election of the Code Authority for the years following 
the first. Such method of election, when approved by the Adminis- 
trator, shall be followed in all elections of the Code Authority, un- 
less modified under the provisions of Section 4 of this Article. If 
the Administrator should so require, an election shall be called and 
held in accordance w^ith such method of election before the expira- 
tion of the term of office of the Code Authority elected under the 
provisions of subsection (a) of this Article. 

Section 2. In addition to membership as above provided, there 
may be two (2) members, without vote, to be appointed by the Ad- 
ministrator, to serve for such terms as he may designate. 

Section 3. Each trade or industrial association directly or in- 
directly participating in the selection or activities of the Code Au- 
thority shall (1) impose no inequitable restrictions on membership, 
and (2) submit to the Administrator true copies of its articles of 
association, by-laws, regulations, and any amendment^ 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 tlip 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 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. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent, or employee 
of the Code Authority. Nor shall any member of the Code Au- 
thority, exercising reasonable diligence in the conduct of his duties 
hereunder, bo liable to anyone for any action or omission to act 
under this Code, except for his own willful malfeasance or non- 
feasance. 

TART B POWERS AND DUTIES 

Section 1. Subject to such rules and regulations a,s may be issued 
by the Administrator, tlio 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. 

(h) To adopt by-laws and regulations and rulc,s for its procedure. 

(c) To obtain from meml)ers of the Industry such information 
and reports as are required for the administraticm of the Code and 
to ]>rovidc for submission by members of ,such information and re- 
ports as the Administrator may deem necessary for the ])urposes 
recited in Section 3 (a) of the Act, which information and report^ 



187 

shall be submitted by members to such administrative and/or gov-' 
ernment agencies as the Administrator may designate ; pro\dded tliat 
nothing in this Code shall relieve any member of the Industry of 
any existing obligations to furnish reports to any government 
agency. No individual reports shall be disclosed to any other 
member of the Industry or any other party except to such govern- 
mental agencies as may be directed by the Administrator. 

(d) To use such trade associations and other agencies as it deems 
proper for tlie carrying out of any of its activities provided for 
herein, provided that nothing herein shall relieve the Code Authority 
of its dutie,s 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) (1) It being found necessary, in order to support the adminis- 
tration of this Code and to maintain the standards of fair competi- 
tion established by this Code and to cirectuate the policy of the Act, 
the Code xA.uthority is authorized, subject to the approval of the 
Administrator : 

(a) To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes ancl to meet such obligations out 
of funds which may be raised as hereinafter provided and v.'hich 
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 lie 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; and 

(c) Aft-er 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 tlierefor 
in its own name. 

(2) Only members of the Industry complying with the Code and 
contributing to the expenses of its preparation and 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 voluntary activities or to make use of any emblem 
or insignia of the National Recovery Administration. 

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

(g) To appoint a trade practice committee who shall meet and 
confer with like committees to l)e appointed by the Code Authori- 
ties 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 trade/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. 

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



188 

(i) To cooperate with the Administrator in regulating the use of 
any N.R.A. insignia solely by those members of the Industry com- 
plying with this Code. 

(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. 

Section 2. No provision of this Code shall deny to any member 
of the Industry or to any party in any proceeding the right to appeal 
to the Administrator nor prevent, at any time, direct appeal to him 
from any determination of the Code Authority. The Code Author- 
ity may, if it chooses, invoke the procedure provided for in this 
Section. 

Section 3. The Code Authority shall work in collaboration with 
the Department of Agi-iculture to study and promulgate consumer 
grades and quality standards including nomenclature for the prod- 
ucts of the Industry. Within six months the findings and recom- 
mendations of the Code Authority shall be submitted to the Admin- 
istrator and after such hearings as he may designate, and upon 
approval by him, shall be made a part of this Code and binding 
upon every member of the Industry. 

Section 4, Review. — 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 considera- 
tion by such Code Authority or a^^ency 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 — Prices and Discounts 

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

(b) Revised schedules of prices, discounts, terms and conditions 
of sale, may be filed from time to time thereafter with the Code 
Authority by any member of the Industry. 

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

(d) All schedules must conform to the provisions of this Code, 
and all sales made by each member of the Industry shall be at the 
prices, discounts, full terms and conditions of sale, then on file as 
effective, by such member of the industry with the Code Authority. 

* See paragraph 2 of order approving this Code, 



189 

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

Section 2. Price Disorimin-ation. — No member of the Industry 
shall discriminate in price among buyers. The term " discriminate 
in price " as used in this Section means directly or indirectly charg- 
ing a different price to buyers in the same quantity and/or distri- 
bution class who are located in the same competitive market or any 
action taken by any member of the Industry pursuant to the pro- 
visions of subsection (b) Section 1 of this Article which tends to or 
results in such discrimination in price. 

Section 3. Cash Discmmts. — No member of the Industry shall 
allow a cash discount which is not duly earned in accordance with 
the terms of cash discount as filed under the provisions in Section 
1 of this Article. 

Section 4. Quantity Price. — No member of the Industry shall 
offer or make a quantity price unless it is a genuine quantity price, 
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 reasonably 
measured by a substantial difference in the quantity sold and 
delivered. 

Section 5. Destructive Price Cutting. — Destructive price cutting 
is declared an unfair method of competition and is forbidden. 

(a) When no emergency exists and when no lowest reasonable 
cost is in effect, as hereinafter provided, for any given product 
of the Industry, it is intended in order to foster fair price compe- 
tition that pricing practices should give due consideration to sound 
cost estimating methods, but that when no emergency exists no min- 
innmi basis for prices should be fixed. In order to facilitate the 
estimating of costs hereunder and to encourage the use of proper 
accounting methods for purposes of internal management, 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 and shall submit such sj'Stem and methods 
to the Administrator for review and possible disapproval. Full 
details and instructions concerning such methods shall be made 
available to all members of the Industry and to the Administrator 
and thereafter all such membere should utilize the principles of 
such methods in determining and/or estimating costs. No member 
of the Industry shall be deemed to have engaged in destructive 
price cutting, at a time when the lowest reasonable cost for such 
product determined pursuant to subsection (b) of this Section ig 
not in effect, if an impartial agency, de,signated or approved by the 
Administratoi-j shall find (1) that proper use has been made of and 
due consideration given to the cost estimating methods above referred 
to, or (2) that the price at which sale or offer of sale has been 
made is justified by existing competition, evidence of which has 
been reported to the Code Authority, or (3) that such price 13 
justified as a method of disposal of dropped lines or seconds. 

(b) When the Administrator determines that destructive prica 
cutting has caused an emergency in the Industry such as to render 



190 

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 rea- 
sonable cost of the products 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 deter- 
mined pursuant to this subsection shall be deemed destructive price 
cutting, unless justified by notification to the Code Authority as a 
necessary means of disposal of dropped lines or seconds. 

Article VIII — Unfair Trade Practices 

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

Section 1. Inaccurate Advertising. — To publish advertising 
(whether printed, radio, displa}^ or of any other nature), which is 
misleading, or inaccurate in aii}^ material particular, nor shall any 
member in any way misrepresent any goods (including, but without 
limitation, its use, trade mark, gi-ade, quality, quantity, origin, size, 
substance, character, nature, finish, material content, or preparation) 
or credit terms, values, policies, services, or the nature or form of the 
business conducted. 

Section 2. False Invoicing. — To knowingly withhold from or in- 
sert in any quotation or invoice any statement that makes it inac- 
curate in any material particular. 

Section 3. Inaccvfrate Labeling. — To brand or mark or pack any 
goods in any manner which is intended to or does deceive or mislead 
purchasers with respect to the brandj grade, quality, quantity, origin, 
size, substance, character, nature, finish, material content or prepara- 
tion of such goods. 

Section 4. Gorisignment. — To ship goods on consignment or on 
approval except under any rules and regulations which the Code 
Authority may prescribe with the approval of the Administrator. 

Section 5. C oinmerdal Bribery . — To give, to permit to be given, 
or directly offer to give, anything of value for the purpose of in- 
fluencing or rewarding the action of any emplo^'^ec, agent or repre- 
sentative of another relation to the business of the employer of such 
employee, the principal of such agent or the represented party, with- 
out the knowledge of such employer, principal or party. Commer- 
cial bribery provisions shall not be construed to prohibit free and 
general distribution of articles commonly used for advertising ex- 
cept so far as such articles are actually used for commercial bribery 
as hereinabove defined. 

Section G. InaccuratiZ Reference to Competitors. — To publish ad- 
vertising which refers inaccurately in any material particular to 



191 

any competitors or tlieir goods, prices, values, credit terms, policies 
or services. 

Section 7. Price Gu-arantee. — To guarantee, offer, or make any 
allowance on the floor stock of a buyer to cover a pric« decline. 

Section 8. Terms of Sal^. — To : 

(a) Allow a buyer terms in excess of 2% 10 days, 30 days net; 

(b) Allow any cash discount to any buyer when payment is made 
by note, or trade acceptance; 

(c) Post date invoices; or 

(d) iVccept a note or trade acceptance from a buyer unless such 
note or trade acceptance bears interest at current legal rates from 
the due date of the invoice. 

Section 9. Threats of Law Suits. — To publish or circulate un- 
justified or unwarranted threats of legal proceedings which tend 
to or have the effect of harassing competitors or intimidating their 
customers. 

Section 10. Prizes^ Premimns, Gifts. — To offer or to give prizes, 
premiums, gifts, or anything of value in connection with, or as an 
inducement to, the sale of ice cream cone products. 

Section 11. Rebates. — (a) To offer or make secretly, directly or 
indirectly, any payment or allowances of a rebate, refund, commis- 
sion, credit, unearned discount or excess allowances, whetlier in the 
form of money or otherwise. 

(b) To offer or extend, directly or indirectly, to any customer 
any special s^ervice or privilege not extended to all customers, under 
like terms and conditions in the same marketing area, for the purpose 
of influencing a sale, or with the effect of influencing a sale. 

(c) The provisions of this Section shall not be construed to pro- 
hibit the free and general distribution and installation of articles 
commonly used for advertising except so far as such articles are 
actually used for rebates as herein above defined. 

Section 12. Free Deals. — To give free deals with shipments of 
products of the Industry. (The term " free deal " as used in this 
Section shall mean the giving of free merchandise which would 
have the effect of reducing the net cost per unit to buyers below 
the price filed under the provisions of Section 1 of Article VII.) 

Section 13. Interference loith Contracts. — To wilfully induce or 
attempt to induce the breach of an existing contract between a com- 
petitor or customer or source of supply; nor shall any such member 
interfere with or obstruct the performance of such contractual duties 
or services. 

Article IX — Modieication 

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 imder 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 tlie 
Administrator, be modified or eliminated in such manner as may be 
indicated by the needs of the public, by changes in circumstances, or 



192 

by experience. All the provisions of this Code, unless so modified 
or eliminated, shall remain in effect until June 16, 1935. 

Article X — Monopolies 

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

Article XI — Price Increases 

"WHiereas the polic,y 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 become effective on the second Monday after its 
approval. 



Approved Code No. 45G. 
Registry No. 101-28. 



o 



Approved Code No. 457 
CODE OF FAIR COMPETITION 

FOR THE 

CAP AND CLOTH HAT INDUSTRY 

As Approved on June 5, 1934 



ORDER 

Code of Fair Competition' for the Cap and Cloth Hat 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 Cap and Cloth Hat 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: 

NO\V, 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 annexed 
report and do find that said Code complies in all respects wath 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. 

Hu'GH S. Johnson, 
AdminUtrator for Industrial Recovery. 

Approval recommended: 
Soii A. Rosenblatt, 

Divis-ion AdTiiinistrator. 

Washington, D.C, 

June 5, IQSJi^ 

65335" G67-29 34 (193) 



EEPORT TO THE PRESIDENT 

The President, 

TU White House. 

Sir: The Public Hearing on the Code of Fair Competition for 
the Cap and Cloth Hat Industry as proposed by the National Cap 
and Cloth Hat Institute was conducted in Washington, D.C., on 
August 17, 1933, in conjunction with the Hearing on the Proposed 
Codes for the Hat Manufacturing Industry and Hat Supplies 
Manufacturing Industry. 

Every person who re(^uested an appearance was fairly heard in 
accordance with regulations of the National Recovery Administra- 
tion. The Code has the approval of the Labor, Industrial, and 
Consumers' Advisory Boards of the National Recovery Adminis- 
tration, and of the Legal Division. The Code Committee of the 
Cap Association of the United States, Incorporated, which Asso- 
ciation represents a merger of the National Association of Cap 
Manufacturers, Incorporated, and of the National Cap and Cloth. 
Hat Institute has given assent on behalf of the Industry to the 
final draft of the Code. 

The Industry as defined in the Code includes the manufacture 
of caps and/or cloth hats of any and all description, including 
uniform caps, aviation caps, hunting caps, helmets, sport and goli 
caps, baseball caps, shop caps, and railroad caps, manufactured 
from cloth, leather and leatherette, or any combination or substi- 
tutes for said materials. 

The main centers of the Industrj^^ are New York, Philadelphia, 
St. Louis, Chicago, Boston, Cleveland, Minneapolis, St Paul and 
Seattle. The establishments are small and highly competitive. Over 
half of the wage earners work in plants that employ not more than 
twenty (20) workers each. Of the five hundred seventy-six (576) 
establishments reported by the United States Census Bureau in 
1929, only one employed more than one hundred (100) workers. 
About sixty percent (60%) of the workers are men. The workers 
belong to the highest skilled crafts, such as cutters, blockers and 
operators. In general, there is not much unskilled labor in the 
Industry. 

Although the value of ])roduction in the Industry declined from 
$34,158,155. in 1929, to $17,000,000. in 19;>,2, the decline in employ- 
ment has only been from 5,826 in 1929, to 4,000 in 1932. 

'J'he Cap Association of the United States, Incorporated, represents 
a]:)proximatcly ninety percent (90^ ) in value of the total production 
of cap and cloth hats in the United States, and approximately 3,500 
of the 4,000 employees. The non-members of the Association, the 
number of wliom is not actually known, produce only a negligible 
volume of business. The membership of the Association numbers 
805. There are no other known associations of cap and cloth hat 
manufacturers. 

RESUME or THE CODE 

Article I gives the purposes of the Code. 
Article II sets forth certain definitions. 

(194) 



195 

Article III contains the maximum hour provisions of the Code. 

Article IV establishes the minimum wage for all employees em- 
ployed in the Industry. 

Article V sets forth the general labor provisions. 

Article VI provides for the organization of the Code Authority 
and defines its powers and duties. 

Article VII provides for the use of N. R. A. labels in the Industi-y. 

Article VIII deals with sales below cost. 

Article IX provides for the modification of the Code. 

Article X states that the Code shall not permit monopolies. 

Article XI deals with price increases. 

Article XII specifies tiie effective date. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 
having found as herein set forth and on the basis of all the 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 practice, by promoting the 
fullest possible utilization of the present productive capacity of in- 
dustries, by avoiding undue restriction of production (except as 
may be temporarily required), by increasing the consumption of 
industrial and agricultural products through increasing purchasing 
power, by reducing and relieving unemplojmient, by improving 
standards of labor, and by otherwise rehabilitating industry. 

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

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without 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 the said association imposes no inequi- 
table restrictions on admission to membei-ship therein. 

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

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

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

For these reasons the Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
June 5, 1934. 



CODE OF FAIR COMPETITION FOR THE CAP AND 
CLOTH HAT INDUSTRY 

Article I — Purposes 

To effectuate the policy of Title I of the National Industrial Re- 
covery Act the following provisions are established as a Code of 
Fair 'Competition for the Cap and Cloth Hat Industry, and shall be 
the standard of fair competition for such Industry and shall be bind- 
ing upon every member thereof. 

Article II — Definitions 

Section 1. The term " Cap and Cloth Hat Industry " as used 
herein includes the manufacture and production in whole or in part 
of caps and/or cloth hats of any and all description, including, but 
without limitation, uniform caps, aviation caps, hunting caps, 
helmets, sport and golf caps, baseball caps, shop caps, and railroad 
caps manufactured from cloth, leather or leatherette, or any combi- 
nations of the said materials, including the manufacture of cap 
visors, bands, brims, and sweat bands other than leather, and such 
branches or subdivisions of the Industry as may from time to time 
be included under the provisions of this Code. 

Section 2. The term " employee " as used herein includes any per- 
son engaged in an}^ phase of the Industry, in any capacity, receiving 
compensation for his services, irrespective of the nature or method 
of ()a3^ment of such compensation, except a member of the Industry. 

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

Section 4. The term " member of the Industry " as used herein 
includes any person, firm, or corporation engaged in the Industry, 
either as an emploj^er or on his or its own behalf and either as 
manufacturer or contractor. 

Section 5. The term "contractor" as used herein includes any 
person employing manufacturing labor and operating in a regular 
j)lace of business who manufactures or produces in whole or in part 
for the account of another any products manufactured by the 
Industry as defined above and/or any part thereof that may be 
necessary to finish or complete any such products. 

SiXTKjN G. The term "Association " as used herein shall mean the 
Cap Association of the United States, Inc. 

Section 7. The terms " l*rcsident "', "Act", and "Administrator" 
as used herein mean respectively tlie President of the United States, 
Title I of the Natiorial Industrial Recovery Act, and tlie Adminis- 
trator for Industrial Recovery. 

AiaiciE III — Hours 

Section 1. Except as heieinafter })r()vid(Ml, no employee shall bo 
permitted to work in excess of forty (40) hours in any one week, 

(19G) 



197 

nor in excess of eight (8) hours in any twenty- four (24) hour period. 

Section 2. No manufacturing operations shall be performed on 
any Saturday or Sunday except that the Code Authority, subject 
to prior approval by the Administrator, may permit manufacturing 
operations on any Saturday of a week in which there is a religious 
or legal holiday. In no event shall any manufacturing operations ba 
performed during more than five (5) days during any one (1) week. 

Section 3. The provisions of this Article shall not apply to out- 
side salesmen, nor to persons employed in a managerial or executive 
capacity who earn not less than thirty-five ($35.00) dollars per week. 

Section 4. The provisions of this Article shall also apply to all 
employers and members of the Industry insofar as they themselves 
perform the work of employees. 

Section 5. Subject to approval by the Administrator, the Code. 
Authority shall designate the hour before which work shall not begin 
and the hour after which work shall not continue. Such opening and 
closino; hours need not be uniform throughout the country, but may 
be varied to meet varying needs and conditions. 

Section 6. No employer shall knowingly permit any employee to 
work for any time which, when added to tne time spent at work for 
another employer or employers in this Industry, exceeds the maxi- 
mum permitted herein. 

Article IV — Wages 

Section 1. Except as hereinafter provided no employee shall bo 
paid less than at the rate of thirty-two and one-half cents (32i/2^) 
per hour. 

Section 2. No employee engaged in cutting, blocking, operating, 
or lining making and employed in the Eastern Area as hereinafter 
defined shall be paid less than at the rate of fifty-five cents (55^) 
per hour. 

Section 3. No employee engaged in cutting, blocking, operating, 
or lining making and employed in the Western Area as hereinafter 
defined shall be paid less than at the rate of tliirty-seven and one- 
half cents (371/2^) per hour. 

Section 4. For the purposes of this Code the term " Eastern Area " 
is defined to include the States of Maine, New Hampshire, Vermont, 
Rhode Island, Massachusetts, Connecticut, New York, New Jersey, 
Pennsylvania, Maryland and Delaware, and the term "Western 
Area " is defined to include all other places in the United States. 
The Code Authority may recommend to the Administrator such mod- 
ifications of the definitions of the terms " Eastern Area " and " West- 
ern Area " as it may deem advisable and such recommendations upon 
the approval of the Administratorj after such notice and hearing as 
he may require, shall become effective as part of this Code. 

Section 5. No employee engaged as an apprentice shall be paid 
less than at the rate of twenty-five cents (25^) per hour during the 
first six (6) weeks of employment in the Industry and thereafter 
less than at the minimum rate herein provided. If the operation 
at which any apprentice is engaged is piece-work and the amount 
earned at the piece-work rate is more than the minimum apprentice 
wage hereby established, such apprentice shall be paid on sucn piece- 



198 

work basis. The period ctf apprenticeship shall not exceed six (6) 
weeks and any time worked by an apprentice in the Industry shall 
be deemed a part of such apprenticeship period, whether such time 
is worked continuously or in more than one shop or for more than 
one employer. The number of apprentices engaged by any one em- 
ployer shall at no time exceed ten percent (10%) of the total num- 
ber of empioyee,s engaged in manufacturing operations in the employ 
of such employer. The Code Authority, subject to the approval of 
the Administrator, may limit the total number of apprentices en- 
gap-ed by any one employer in Rnj one (1) year. 

Section 6. This Article establishes a minimum rate of pay which 
shall apply irrespective of whether an employee is compensated on a 
piece-rate, time-rate or other basis. 

Section 7. Unless the Administrator otherwise directs, no em- 
ployer shall reduce the vv^eekly compensation for employment now 
m excess of the minimum wages established herein, notwithstanding 
that the hours worked in such employment may hereby be reduced. 

Article V — General Labor Prqvisigns 

Section 1, No person under eighteen (18) years of age shall be 
employed in the Industry at operations or occupations hazardous in 
nature or detrimental to health. No person under sixteen (16) years 
of age shall be employed in the Industry in any capacity. In any 
State any empioj^er sliall he deemed to have complied with this pro- 
vision as to age if he shall have on file a certificate or permit, duly 
signed by the Authority in such State empowered to issue employ- 
ment or age certificates or permits showing that the employee is of 
the required age. 

Section 2. Employees shall have the right to organize and 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 desigTiation 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. 

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 
a])proved or prescribed by the President. 

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

Six'TioN 6. Every employer shall provide for the safety and health 
of his employees at the place and during the hours of ttieir employ- 
ment. The Code Authority shall reconnnend to the Administrator 
mininmm standards for the safety and health of employees in this 
Industry within six (G) months after the effective date of this Code 
which minimum standards, upon the approval of the Administrator, 
shall become effective pn^visioris of this Code. 

Skc'hon 7. No provision in this Code shall supersede any State or 
Ferlcral law which imposes on employers more stringent require- 



199 

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. All employers shall post and keep posted complete 
copies of Article III, IV and V of this Code in conspicuous places 
accessible to employees, and shall comply with all the rules and 
regulations relative to posting which may fi-om time to time be pre- 
scribed by the Administrator. 

Section 9. No member of the Industry shall modify established 
practices or privileges so as to shorten vacation periods, leaves of 
absences, or temporary absences from work heretofore granted to 
employees. 

Section 10. No member of the Industry shall contract out any 
manufacturing or production work for performance in the home 
or in any part of the living quarters of any employee. 

Section 11. Female employees performing substantially the same 
work as male employees shall receive the same rates of pay as male 
employees. 

Article VI — Adminisi-ration 

Section 1. A Code Authority is hereby established and constituted 
as follows : 

(a) Nine (9) representatives of the Industry, or such other number 
as may be approved from time to time by the Administrator, shall 
be selected as hereinafter in this sub-section provided, in a manner 
to be approved by the Administration. 

Eight (8) of such members of the Code Authority shall be selected 
by the Cap Association of the United States, Inc. Of these, four 
(4) members of the Code Authority shall be elected by representa- 
tives from tiie Eastern Area as defined in Section 4 of Article IV 
of this Code and four (4) members shall be elected by representatiA-es 
from the Western Area as defined in said Section 4, of Article IV of 
this Code. 

One (1) member shall be selected by members of the Industry 
not members of the said Cap Association of the United States, Inc., 
at such time and in such manner as shall be approved by the 
Administrator. 

(b) Two (2) members may be appointed by the Administrator on 
the nomination of the Labor Advisory Board of the National Recov- 
ery Administration. 

(c) Such additional members, without vote, not to exceed three (3), 
may be appointed by tlie Administrator to represent such groups or 
interests or such governmental agencies and for such periods as he 
may designate. 

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 membership, 
and (2) submit to the Administrator true copies of its articles oi 
association, by-laws, regulations, and any amendments when made 
thereto, together with such otlier information as to membership, 
organization, and activities as the Administrator may deem necessary 
to effectuate the purposes of the Act. 



200 

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 Adminstrator 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 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 any- 
one for any act of any other member, officer, agent, or employee 
of the Code Authority. Nor shall any member of the Code Author- 
ity be liable to any one for any action or omission to act under the 
Code, except for his wilful malfeasance or non-feasance. 

Section 5. If the Administrator shall determine that any action 
of a Code Authority or any agency thereof may be unfair or un- 
just or contrary to the public interest, the Administrator may re- 
quire that such action be suspended, to afford an opportunity for 
investigation of the merits of such action and further consideration 
by such Code Authority or agency pending final action which shall 
not be effective unless the Administrator approves or unless he shall 
fail to disapprove after thirty days' notice to him of intention to 
proceed with such action in its original or modified form. 

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 provi- 
sions of this 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: Provided, however, that this shall not be construed to de- 
prive duly authorized governmental agencies of their power to en- 
force the provisions of this Code or of the Act. 

(b) To adoj)t a constitution, by-laws and rules and regulations 
for its procedure and for the administration of this Code, and to 
submit the sama to the Administrator for his approval, together 
with true copies of any amendment or additions when made thereto, 
minutes of meetings when held, and such other information as to its 
activities as the Administrator may deem necessary to effectuate 
the purposes of the Act. 

(c) To obtain from mem))ers of tlie 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, membi'rs of the Industry subject to this Code shall furnish 
sucli statistical informati(m as the Administrator may deem neces- 
sary for the puri)oses recited in Section 3 (a) of the Act to such 
Federal and State agencies as he may designate; provided that 
nothing in this (>)de shall relieve any member of the Industry of any 
existing obligations to fmnish reports to any (rovernment agency. 
No individual i-eport shall be disclosed to anv other member of the 
Industry or any other i)arty except to such other Governmental 
agencies as may be directed by tlio Administrator and/or as may 
otnerwise be required by the law. 



201 

(d) To use sucli trade associations and other agencies as it deems 
proper for tiie carrying out of any of its activities provided for 
lierein and to pay such trade associations and agencies the cost there- 
of, provided that nothing herein shall relieve the Code Authority 
of its duties or responsibilities under this Code and that such trade 
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 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 form.ulating fair 
trade practices to govern the relationships between production and 
distribution employers under this Code and under such others to the 
end that such fair trade practices may be proposed to the Adminis- 
trator as amendments to this Code and such other Codes. 

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

(h) To create an Industrial Kelations Committee to handle both 
labor complaints and labor disputes, such Committee to be estab- 
lished in accordance with rules and regulations prescribed by the 
Administrator. 

(i) To initiate, consider, and make recommendations for the mod- 
ification or amendment of this Code which shall become effective 
as a part of this Code when approved by the Administrator after 
such notice and hearing as he may specify. 

(j) To cause to be formulated an accounting system, and methods 
of cost finding and/or estimating adaptable for use by all members 
of the Industry. Upon approval by the Administrator, after such 
system and methods have been formulated, full details concerning 
them shall be made available to all members. Thereafter, all mem- 
bers shall determine and/or estimate costs in accordance with the 
principles of such methods. 

(k) To make recommendations, which upon the approval of the 
Administrator shall become effective as a part of this Code, for the 
regulation and disposal of distress merchandise. 

(1) To make recommendations, which upon the approval of the 
Administrator shall become effective as a part of this Code, for the 
regulation of methods and conditions of purchasing and selling 
merchandise and in particular to make recommendations with re- 
gard to rebates, refunds, allowances, unearned discounts, terms of 
credit, misbranding, mismarking and the return of merchandise. 

Section 7. It being found necessary, in order to support the admin- 
istration of this Code and to maintain the standards of fair com- 
petition established by this Code and to effectuate the policy of the 
Act, 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 may be raised as hereinafter provided and whicli shall 
be held in trust for the purposes of the Code. 



202 

(b) To submit to the Administrator for his approval, subject to 
Buch 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 Avhich 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 therefore in 
its own name. 

Section 8. Only members of the Industry complying with the 
Code and contributing to the expenses of its administration as pro- 
vided in Section 7 hereof shall be entitled to participate in the selec- 
tion 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 Eecovery Administration. 

Article VII — Labfxs 

Section 1. All merchandise manufactured or distributed subject 
to the provisioi^s of this Code shall bear an N.RA. label, to symbolize 
to purchasers of said merchandise the conditions under which it has 
been manufactured. 

Section 2. Under the powers vested in the Administrator by Execu- 
tive Order of October 14, 1933, and under grant of the necessary 
authority by him, the Code Authority shall have the exclusive right 
to issue and sell labels to the members of this Industry. 

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

Section 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, and shall not there- 
after be withdrawn except in accordance with such rules and regula- 
tions as may be prescribed by the Administrator. 

Section 5. Subject to the approval of the Administrator, the Code 
Authority sha.ll establish rules and regulations and appropriate 
machinery for the issuance and sale of labels and the inspection, 
examination and supervision of the practices of members of the 
Industry using such labels for the purposes of ascertaining the right 
of such members of the Industry to the continued use of said labels; 
or protecting purchasers in relying on said labels; and of insuring 
to each individual member of the Indu.stry that tlie symbolism of said 
label will bo maintained by virtue of compliance with the provisions 
of this Code by all members of the Industry using said label. 

Section 6. The charf^e made for such labels by the Code Authority 
shall at all times be suoject to supervision and orders of the Admin- 
istrator and shall be not more than an amount necessary to cover 
the actual reasonable cost thereof, including actual printing and 
distribution, administration and supervision of the use thereof as 
herein above set forth. 



203 

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

Article VIII — Sales Below Cost 

No member of the Industry shall sell any merchandise subject 
to the provisions of this Code at a price below his own individual 
cost as computed hj the uniform cost system provided in Article 
VI, Section 6 (j) of this Code when approved by the Administra- 
tor; provided, however, that a member of the Industry may sell 
at a price below his ov>m indi\ddual cost in order to meet the com- 
petition of another member who is not himself selling at a price 
below his own individual cost, computed on a like basis. This rule 
shall not apply to bona fide seasonal clearance sales nor to the sale 
of imperfect or actually damaged or distress merchandise. 

Article IX — Modification 

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

Section 2. This Code, except as to the provisions required by 
the Act, may be modifietl 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 spec- 
ify, and to become effective on approval by the Administrator. 

Article X — Monopolies 

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

Article XI — Price Increases 

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

Article XI I — Effective Date 

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

Approved Code No. 457. 
Registry No. 213-1-05. 

o 



Approved Code No. 458 
CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE CONFECTIONERS' INDUSTRY 

As Approved on June 6, 1934 



ORDER 



Approving Code of Fair Competition for the Wholesale 
ConI'T:ctioneks' Industry 

An application havint? been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 1(), 1933, for approval of a Code of 
Fair Competition for the Wholesale Confectioners' Industry, and 
hearings having been duly held thereon and the annexed report on. 
said Code, containino- findings witii respect thereto, havino; been 
made and directed to the President: 

NOW. THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Order 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 wall promote the policy and purposes 
of said Title of said Act; and do hereby order that said Code of Fair 
Competition be and it is hereby approved; provided, however, that 
the provisions of Article VII. Section 1, insofar as they prescribe a 
waiting period between the filing with the Code Authority (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 and provided that 
the provisions of Article VIII. Rule 17 which prohibit the use of 
premiums, be and they are hereby stayed pending my further order, 
and provided further that the provisions of Article VIII, Rule 21 
shall not become effective and tliey 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 expiration of which period the pro- 
visions of said Article VIII. Rule 21. shall become effective unless I 
shall by my further order otherwise determine or extend such stay; 

05.328° 057-32 '.M 1 (2ll5> 



206 

and, provided fiirtTier, that the provisions of Article III, Section 2, 
are hereby stayed pending my further order. 

Hugh S. Johnson, 
Administi^ator for Industrial Recovery. 

Approval recommended : 
Aemin W. Riley, 

D'iv is ion A dmini^ trator. 

Washington, D.C, 

June 6, WSIf. 



REPOKT TO THE PRESIDENT 

The President, 

The AVliite House. 

Sir: A Public Hearing on the Code of Fair Competition for the 
Wholesale Confectioners' Industry, submitted by the Federated 
Wholesale Confectioners' Associations of America, Inc., was con- 
ducted in Washington on the 14th of March, 1934, in accordance 
with the provisions of the National Industrial Recovery Adminis- 
tration. The Association claims to represent more than eighty 
percent (80%) of the industry. 

The original proposed Code was filed by the Association the 11th 
of September, 1933, Avith the National Recovery Administration. 
By Executive Order of October 20, 1933, the Administration of the 
Code (other than provisions relating to hours of labor, rates of pay, 
and other conditions of employment) was delegated to the Secretary 
of Agriculture. Subsequently the Executive Order of January 8, 
1934, amending the Executive Order of October 20, 1933, provided 
for transfer of the entire Code to the Administrator for Industrial 
Recovery. The provisions of the Code, as submitted for your ap- 
proval, are substantiated by the official record of the Public Hearing, 
infonuation and facts contained in filed briefs or, as a result of Post- 
Hearing Conferences held witli the Code Committee. 

ECONOMIC EFFECT OF THE CODE 

It is stated the industry comprises approximately 7.000 units 
primarily engaged in the distribution of confectionery at wholesale. 

It is claimed that the industry, as defined in the Code, normally 
employs somewhat less than 50,000 employees, and does an annual 
volume of business in excess of $100,000,000.00 

HOURS AND WAGES 

To your Administrator',s request for a reduction in maximum 
hours of ten percent (10%), the industry's response is the estab- 
lishment in the Code of a maximum of thirty-six (36) hours per 
week and eight (8) hours per day with exceptions for managerial 
and supervisory employees receiving salaries in exces,s of $35.00 
per week, outside salesmen, outside deliverymen, and billing and 
shipping employees. The latter two exceptions, it is stated, are 
essential to the maintenance of a parity of competitive relations in 
delivery functions. 

To your Admini,strator's further request for a ten percent (10%) 
increase in hourly wage rates, the industry response is the estab- 
lishment in the Code of a minimum wage rate of $0.42 per hour 
in the North and $0.37 per hour in the South : an increase of five 

(207) 



208 

percent (5%) in hourly wage rates; but, in the North, employees 
are guaranteed a weekly wage of not less than $16.00 for a thirty- 
six (36) hour week: and, in the South, not less than $14.00 for a 
thirty-six (36) hour week. 

The resultant of the weekl}^ wage guarantee represent^ an actual 
increa.se of ten percent (10%) in the hourly wage rates. 

The Code contains safeguarding clauses providing for over-time 
payment, to the majority of employees, for hours worked in excess 
of the maximum. 

The maximum hours may be exceeded during peak periods, pro- 
vided, that, extra hours worked by employees are compensated for 
at the rate of time and one-third. 

Employees are limited to a six-day week. 

Employees may not vv^ork on Sundays. 

Office employees are limited to a o6-hour week with a minimum 
rate of pay of $16.00 per week. 

Delivery helpers not to exceed one for each delivery vehicle may 
be paid eighty percent (80%) of the established minimum wage 
rates. 

The Code provides for equitable adjustments. 

Full compliance with this and the Codes of other industries is 
provided for in Article IX. 

It is estimated that the thirty-six (36) hour vv^eek, established 
in the Code, will benefit more than sixty percent (60%) of the em- 
ployees in the industry and result in an approximate twentj^ percent 
(20%) increase in employment. 

It is estimated that the minimum wage rates, established in the 
Code will equal, and in some instances exceed, the weekly wages 
paid to employees in 1929, with benefit to more than sixty percent 
(60%) of the employees in the industry. 

Your Administrator believes that the industry has taken a for- 
ward step toward effectuating the policies of Title I of the National 
Industrial Kecovery Act. 

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

T find that : 

(a) Said Code is well designed to promote the policies and pur- 
poses of Title I of the National Industrial llccovery Act, including 
removal of o})striictions to the free flow of interstate and foreign 
commerce M'hich tend to diminish the amount thereof and will pro- 
vide for the general welfai-e by i)romoting the organization of 
industry for the i)urpose of cooperative action among trade groups, 
by inducing and maintaining united action of labor and manage- 
ment under ade(|uate govermnental sanctions and supervision, by 
eliminating unfair competitive })ractices, by promoting the fullest 

{)0.ssible utilization of tfie present i^roductive capacity of industries, 
)y avoiding undue restriction of production (except as may be tem- 
porarily required), l)y increasing the consumptioii of industrial and 
agricidtural products tlirough increasing purchasing power, by 
reducing and relieving unemployment, l)y improving standards of 
labor, and by otherwise rehabilitating industry. 



209 

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

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, includinfr 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 
aforesaid Industry; and that said association imposes no inequitable 
restrictions on admission to membershi]? therein. 

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

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

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

For the above reasons this Code has been approved. 
Eespectfully, 

Hugh S. Johnson, 

A dininistratoT, 
June 6, 1934. 



CODE OF FAIR COMPETITION FOR THE WHOLESALE 
CONFECTIONERS' INDUSTRY 

Article II — Definitions 

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 Wholesale Confectioners (distributing 
functions) 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 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 Adminis- 
trator for Industrial Recovery. 

Section 2. The term " industry " as used herein shall mean and 
include all selling or distributing at Avholesale to other than the 
ultimate consumer for personal use, of confections, candy manufac- 
tured chocolate, chewing gum and all other products commonly 
referred to as confectionery products, but shall not include a branch 
or subdivision of the wholesale confectionery industry for which 
a Code of Fair Competition has been or shall hereafter be approved 
by the President. 

Section 3. The term " Member of the Industry " and " member " 
as used herein, includes, but without limitation, any individual, 
partnership, association, corporation, or other form of enterprise 
and their respective subsidiaries and/or affiliates, engaged in the 
industry, either as an employer or on his or its own behalf. 

Section 4. The term " subsidiary " as used herein means any per- 
son, of or over whom, a member of th-^ industry has either directly 
or indirectly, actual or legal control whether by stock ownorship 
or in any other manner. 

Section 5. The term " affiliate " as used hei-ein means any per- 
.son who has, either directly or indirectly, actual or legal control 
whether ])y stock ownership or in any other manner, or any. sub- 
sidiary of such person. 

Section G. The term " wholesale confectioner " as used herein 
shall mean a member of the industry engaged, wholly or partially, 
in the wholesale coiifectionei-y industry, for his own account and 
who operates |)rincipally from a j)rivately controlled warehouse. 

Section 7. The term " wagon jobber " as used herein sliall mean 
and include, tiiosc; members of the industry. 

(a) who buy exclusively from wholesale confectioners, for i)ur- 
pose of resale to retailers, 

(b) who buy j)artially from the wholesale confectioner and par- 
tially from the manufacturer, and who sell direct to retailers, for 

(210) 



211 

their own account, making deliveries at time of sale from a stock 
carried with them, 

(c) who are engaged in the industry in their own behalf and 
who do not operate from a privately controlled warehouse. 

Section 8. The term " buyer " as used herein shall mean and 
include any person who purchases the products of the industry for 
the purpose of resale. 

Section 9. The term " employee " as used herein means any per- 
son 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 10. The term " employer " as used herein means any per- 
son by whom any such employee is compensated or employed. 

Section 11. The term " route salesmen " as used herein shall 
mean and include any and all salesmen who carry and sell candy 
on established routes and who make delivery at the time of sale 
of the stock so carried. 

Section 12. The term " outside salesmen " as used herein means 
employees at least 80% of whose working time is devoted to out- 
side selling functions and who do not ordinarily deliver. 

Section 13. The term " outside deliverymen " as used herein means 
employees at least 80% of whose working time is devoted to delivery 
functions and who does not perform selling functions. 

Section 14. The term " delivery helper " as used herein shall mean 
an employee at least 80% of whose working time is devoted to assist- 
ing an outside delivery employee, and who does not engage in op- 
erating a delivery vehicle. 

Section 15. The term " South " as used herein shall mean and in- 
clude Virginia, North Carolina, South Carolina, Florida, Georgia, 
Alabama, Mississippi, Tennessee, Kentucky, Oklahoma, Arkansas, 
Texas and Louisiana. 

Section 16. The term "Association " as used herein shall mean the 
Federated Wholesale Confectioners Associations of America, Incor- 
porated. 

Article III — Store Hours and Hours of Labor 

Section 1. No member of the industry shall perform or cause to 
be performed any of the functions of the industry in excess of eleven 
(11) hours in any twenty-four (24) hour period. Such eleven (11) 
hours shall be consecutive. 

Section 2. The delivery functions of wagon jobbers shall not ex- 
ceed forty-eight (48) hours in any week and ten (10) hours in any 
twenty-four (24) hour period.^ 

Section 3. No member of the industry shall perform or cause to 
be performed any of the functions of the industry on Sunday. 

Section 4. No employee shall be permitted to work in excess of 
thirty-six (36) hours in any one week, or eigJit (8) hours in any 
twenty-four (24) hour period, except that in one day in each calendar 
week employees may be permitted to work not in excess of ten (10) 
hours and except as herein otherwise provided. 

1 See paragraph 2 of order approving this Code. 
05338° 657-32 34 2 



212 

Section 5. The provisions of this Article shall not apply to per- 
sons employed in a managerial, executive or supervisory capacity 
who regularly earn not less than thirty-five dollars ($35.00) per week, 
nor to outside salesmen. 

Section 6. The provisions of Section 4 shall not apply to peak 
periods not to exceed two (2) weeks of the first six (6) months of 
the calendar year and not to exceed three (3) weeks of the second 
six (6) months when employees may be permitted to work not in 
excess of an additional six (6) hours in any week, provided that 
such additional hours worked by employees shall be compensated 
by at least time and one-third. 

Section 7. No clerical, accounting or other office employees shall 
be permitted to work in excess of thirty-six (36) hours in any 
week or eight (8) hours in any twenty-four (24) hour period, excej^t 
as herein otherwise provided. 

Section 8. For inventory purposes office employees may be per- 
mitted to work during one week in each calendar year eight (8) 
hours in excess of the maximum hours prescribed in Section 7 of 
this Article, provided that such additional hours worked by em- 
ployees shall be compensated by at least time and one-third. 

Section 9. Outside deliverymen and delivery helpers may be per- 
mitted to work not in excess of forty-eight (48) hours in any week. 

Section 10. Billing and shipping clerks working in conjunction 
with the outside delivery employees in work of such nature that any 
inequality of hours would interrupt the routine of the outside deliv- 
ery department may be permitted to work not more than forty- 
four (44) hours in any week to be compensated for at not less than 
the regular hourly rate of wages provided for in Article IV of this 
Code. 

Section 11. Route salesmen may be permitted to work not in 
excess of forty-eiglit (48) hours in any week. 

Section 12. No employer shall knowingly permit any employee 
to work for any time which when totalled with that already per- 
formed with another employer or employers in this industry, exceeds 
the maximum permitted herein. 

Article IV — Wages 

Section 1. No employee shall be paid in any pay period less than 
at the rate of 42fi per hour, provided that no employee shall be paid 
less than $10.00 for a week of thirty-six (36) hours, exclusive of 
payment for overtime worked in the same pay period, and except 
as herein otherwise provided. 

Sectkjn 2. In the South no employee sliall be paid in any pay 
period less than at the rate of 37^ per hour, provided that no em- 
ployee sliall be paid less than $14.00 for a week of thirty-six (36) 
hours exclusive of payment for overtiiue worked in the same pay 
period, except as herein otherwise provided. 

Section 3. Delivery helpers not to exceed one for each delivery 
vehicle used by the memlxM-, may be paid at the rat-e of 80% of the 
minimum wages provided in Sections 1 and 2 of this Article. 

Si:CTioN 4. No person employed in clerical, ac(;ounting, or office 
work shall be paid less than $16.00 for a week of 36 hours. 



213 

Section 5. Within sixty (60) days after the approval of this Code, 
the Code Authority shall determine the occupations in this industry 
and present for approval to the Administrator after notice and 
hearing a schedule of minimum wage rates for occupations by 
localities. 

Section 6. A person whose earning cai^acity is limited because 
of age or physical or mental handicap or other infirmity may bo 
employed on light work at a wage below the minimum established 
by this Code if the employer obtains from the Authority designated 
by the United States Department of Labor, a certificate authorizing 
such person 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 tJie maximum hours of work for such 
employee. 

Section T. The weekly wages of all employees receiving more than 
the minimum wages specified in this Article shall not be reduced 
below the rates existing on June 1, 1933, notwithstanding any 
reduction in the number of working hours of such employees. 

Section 8. There shall be an equitable adjustment upward of all 
wages above the minimum and to that end within sixty (60) days 
from the approval of this Code, the Code Authority shall submit for 
the approval of the Administrator a propsal for adjustment in wages 
above the minimum. Upon approval by the Administrator, 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. 

Section 9. Employers shall make payment of all wages due in law- 
ful currency or by negotiable checks payable on demand. All 
contracts of employment shall prescribe payment of wages at least 
as often as every two weeks and salaries as often as every month. 

Section 10. This Article establishes minimum rates of pay irre- 
spective of whether an employee is actually compensated on a time 
rate, piece-work or other basis. 

Article V — Genep^l Labor Pro\^sions 

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

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

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

Section 4. No person under the age of sixteen (16) years shall 
be employed in the industry. 

Section 5. No person under eighteen (18) years of age shall be 
permitted to work at operations or occupations hazardous in nature 



214 

or detrimental to health. The Code Authority shall submit to the 
Administrator within ninety (90) days after the effective date of 
this Code, a list of all such occupations. 

In any state an employer shall be deemed to have complied with 
this provision as to age if he shall have on file a certificate or per- 
mit duly issued by the Authority in such State empowered to issue 
employment or age certificates or permits showing that the employee 
is of the required age. 

Section 6. Employers shall make payment of all wages in lawful 
currency or by negotiable checks, payable on demand. All con- 
tracts of employment shall prescribe payment of wages at least 
every two weeks and salaries at least as often as every month. 

Section 7. No provision in this Code shall supersede any State 
or Federal law which imposes on employers m.ore 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. Employers shall not change the method of payment 
of employees' compensation or re-classify employees or duties of 
occupations performed by employees or engage in any other subter- 
fuge so as to defeat the purposes of the Act or the provisions of 
this Code. 

Section 9. No employee paid at a rate in excess of the minimum 
shall be discharged and reemployed at a lower rate of pay for the 
purpose of evading the provisions of this Code. 

Section 10. All employers shall keep posted complete copies of the 
provisions of this Code dealing with hours, wages and conditions of 
employment in conspicuous places of any and continuous access 
to employees. 

Section 11. Each member of the industry shall further comply 
with such rules and regulations Avith regard to the posting of 
notices, bulletins and extracts of Code provisions as rhay be from 
time to time further issued by the Administrator. Such notices, 
bulletins and extracts of Code provisions shall be written in English 
and such other language as may be in general use throughout the 
establishment. 

Section 12. Every employer shall make reasonable provisions for 
the safety and health of his employees at the place and during the 
hours of their employment. 

Standards for safety and health shall be submitted by the Code 
Authority to the Administrator within six months after the effective 
date of this Code. 

Section 13. Wages shall bo exempt from fines and rebates; and 
from charges and deductions, except charges and deductions for em- 
ployees' contributions voluntarily made by employees or for benefit 
funds. No employer shall withhold wages except upon service of 
legal process or other papers lawfully requiring such withholding. 

Deductions for other purposes than those heretofore stated may be 
made only pursuant to a contract in writing which is kept on file by 
the employer for six months after the termination of the contract and 
which shall be kept open for the inspection of the Administrator. 

Section 14. Female employees performing substantially the same 
work as male employees, shall receive the same rate of pay as male 
employees. 



215 

Sectton 15. Employers shall not permit employees, by reason of 
relationship of employer and employee other than tliat of marriage, 
to be exempt from the provisions of this Code ; and an^ person work- 
ing for a member of the industry, other than the wife or husband 
of said member, shall be considered an " employee " as herein defined. 
Partners and stockholders of members of the industry and others 
having proprietary interest in members of the industry shall not, if 
employed thereby, be exempt from hour, wage and general labor 
provisions of this Code. 

Article VI — Administration- 
Section 1. There shall forthwith be constituted a Code Authority 

consisting of nine (9) persons to be apportioned as follows: 

(a^ One person shall be the President of the Federated Wliolesale 

Coniectioners Associations of America, Incorporated. 

Section 2. Eight persons shall be elected according to the plan set 

forth in this Article, provided, however, that : 

(a) One member of the Code Authority, of the eight (8) persons 
so elected, shall be a wagon jobber. 

(b) One member of the Code Authority, of the eight (8) persona 
so elected, shall be a non-member of the association. 

Section 3. In addition to the membership as above provided there 
may be not more than three members to be appointed by the Presi- 
dent, to serve without vote. 

Section 4. There shall be constituted ten (10) geogi-aphical zones 
as follows: 

(a) Zone I shall include the states of Maine, New Hampshire, 
Vermont, Massachusetts, Rhode Island and Connecticut. 

(b) Zone II shall include the states of New York and New Jersey. 

(c) Zone III shall include the states of Pennsylvania, Delaware, 
Maryland and District of Columbia. 

(d) Zone IV shall include the states of Virginia, North Carolina, 
South Carolina, Tennessee and Kentucky. 

(e) Zone V shall include the states of Georgia, Florida, Alabama, 
Mississippi, Louisiana and Arkansas. 

(f) Zone VI shall include the states of Ohio, Michigan, Indiana 
and West Virginia. 

(g) Zone VII shall include the states of Illinois, Wisconsin, Minne- 
sota, Iowa and Nebraska. 

(h) Zone VIII shall include the states of Missouri, Kansas, Okla- 
homa, Texas and New Mexico. 

(i) Zone IX shall include the states of Oregon, Washington, Mon- 
tana, Idaho, North Dakota and South Dakota. 

(j) Zone X shall include the states of Colorado, Utah, Wyoming, 
California, Arizona and Nevada. 

Section 5. (a) Witliin each of the geographical zones set forth 
in this Article, the members of the industry who are members of the 
Association shall elect three (3) electors, the members of the indus- 
try who are non-members of the Association shall elect one (1) elec- 
tor and the members of the industry who are wagon jobbers shall 
elect one (1) elector. 

(b) Nominations and election of electors shall be made at a series 
of ten (10) meetings to be called by the Secretary of the Association, 



216 

one (1) to be held in each of the several geographical zones set forth 
in the within Article. Voting for nominees and election of electors, 
may be by mail, in person, or by proxy, after such notice as the Secre- 
tary of the Association, shall have given to each known member of 
the industry, witliin each of the several geograpliical zones set forth, 
in this Article, such notice shall specifically state the date, time, place 
and purpose of the meeting, and that voting thereat may be by mail, 
in person, or by proxy. Such notice shall further specify the terri- 
tory included in the geograpliical zone for which the meeting is 
called and with each notice of meeting there shall be enclosed a copy 
of Article VI of this Code. 

Section 6. The Secretary of the Association may act or appoint 
another to act as Secretary of the meeting. At the meeting a tem- 
porary chairman shall be elected. The rules for the conduct of the 
meeting, and Article VI of this Code, shall be read and then the 
meeting shall proceed with the election as aforesaid. Within forty- 
eight (48) hours the temporary chairman and Secretary shall certify 
to the Secretary of the Association the names of the persons elected 
as electors, together with an affidavit containing the names of the 
members of the industry participating in the election either in person, 
■ by mail, or by proxy. 

Section 7. The Secretary of the Association shall call a meeting 
of the electors for the purpose of electing tlie Code Authority. 
Notice of the time, place, purpose of meeting shall be sent to each 
elector, such notice shall further specifically state that election of 
members of the Code Authority by electors may be by mail, in person, 
or by proxy. At the meeting electors chosen by members of the Asso- 
ciation shall vote for and elect the six (6) Association members to 
serve on the Code Authority; the electors chosen by non-members of 
the Association shall elect one (1) member to serve on the Code 
Authority; and the electors chosen by Avagon jobbers shall elect 
one (1) member to serve on the Code Authority. The names of the 
eight (8) members so elected shall with the name of the President 
of the Association and the fact that the election has been held pur- 
suant to this Article, be certified to the Administrator and shall con- 
stitute the Code Authority for the industry. 

Section 8. Each member of the industry shall be entitled to one 
vote. 

Section 9. The term of office of the Code Authority shall be one 
year from the date of election thereof or until their successors are 
elected. 

Section 10. The Association and each trade or industrial asso- 
ciation directly or indirectly participating in the selection or activi- 
ties (jf the Code Authority, shall (1) impose no inequitable restric- 
tions on membership, and (2) submit to the Administrator true 
copies of its articles of association, by-laws, regulations, and any 
amendments wlien made thereto, together with such other informa- 
tion as to membershiio, organization, and activities as the Admin- 
istrator may deem necessary to efTeciuate the purpose of the Act. 

Section 11. In order that tlie Code Autliority 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 Iiearings as he may deem proper; and thereafter if he shall find 



217 

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. 

Sfxtion 12. Nothing contained in this Code shall constitute the 
members of the Code Authority partners for any purpose. Nor 
shall any member of the Code Authority be liable in any manner to 
anyone for any act of any other member, officer, agent, or employee 
of the Code Authority. Nor shall any member of the Code Au- 
thority, exercising reasonable diligence in the conduct of his duties 
hereunder, be liable to anyone for any action or omission to act under 
this Code, except for his own willful malfeasance or non-feasance. 

Section 13. If the Administrator shall determine that any action 
of the Code Authority or any agency thereof may be unfair or unjust 
or contrary t-o the public interest, the Administrator may require that 
such action be suspended to afford an opportunity for investigation 
of the merits of such action and further consideration by the Code 
Authority or agency pending final action which shall not be effective 
unless the Administrator approves or unless he shall fail to disap- 
prove after thirty (30) days' notice to him of intention to proceed 
with such action in its original or modified form. 

PCVVERS AND DUTIES 

Section 14. 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 industry with the provisions 
of the Act. 

(b) To adopt by-laws and rules and regulations for its pro- 
cedure, and for the administration of the Code. 

(c) To obtain from members of the industry such information 
and reports as are required for the administration of the Code. 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 Govern- 
mental 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 the industry. 



218 

(f) 1. It being loimd necessary to defray the cost of preparation 
and 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 : 

(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 may be raised as hereinafter pro- 
vided and shall be held in trust for the purposes of the Code; 

(b) To submit to the Administrator for his approval, sub- 
ject to such notice and opportunity to be heard as he may 
deem necessary, (1) an itemized budget of its estimated ex- 
penses 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 contributions have been 
approved by the Administrator, to determine and secure equi- 
table contributions 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 (f) (1) hereof, shall be entitled to participate in the selec- 
tion 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. 

(g) To cooperate with the Administrator in regulating the use 
of any N.R.A. insignia solely by those members of the industry 
who are complying with this Code. 

(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 bo related to the industry for the purpose of formu- 
lating fair trade practices to goA'^ern the relationships between em- 
ployers under this Code and under such other codes to the end that 
such fair trade practices may be proposed to the Administrator as 
amendments to this Code and such other codes. 

(j) To provide appropriate facilities for arbitration, and subject 
to the approval of the Administrator, to prescribe rules of pro- 
cedure and rules to effect compliance with awards and determinations. 

(k) To studj^ the problem of improved accounting and cost finding 
for the industry and to submit to the Administrator its recommenda- 
tions for elements of cost to l>e used by the Code Authority to ad- 
minister and enforce the provisions of this Code. Upon the ap- 
proval of tlie Administrator, such elements of cost and/or cost 
finding shall be binding upon each member of the industry. 



219 

Section 15. Any member of the industry may submit data tend- 
ing to prove that such member is placed at a competitive disad- 
vantage with, or is subject to different economic conditions to those 
of other members of the industry; and the Code Authority may, 
after investigation, recommend to the Administrator that the pro- 
visions of this Code be amended or modified, and upon approval by 
the Administrator, after such notice and hearing as he may specify, 
such amended or modified provisions shall become effective for that 
member of the industry. 

Section 16. Whenever any question may arise under this Code 
as to the construction and meaning of any portion thereof, the Code 
Authority may issue such interpretations as may be necessary to 
effectuate the operation of and compliance with the policy of the 
Act, subject at all times to the approval of the Administrator; and 
such interpretations when approved by the Administrator shall be- 
come operative as a part of this Code. 

Section 17. Within thirty (30) days following the effective date 
of this Code, each member of the industry shall file v/ith the Code 
Authority his name, address and place of business. 

Section 18. No provision of this Code shall deny to any member 
of the industry or to any party in any proceeding the right to appeal 
to the Administrator nor prevent, at any time, direct appeal to him 
from any determination of the Code Authority. The Code Au- 
thority may, if it chooses, invoke the procedure provided for in this 
section. 

Akticle YII — Open Price Pi^vn 

Section 1. Each member of the industry shall, within ten (10) 
days after the effective date of this Code, file v>dth the Code Author- 
ity or its designated agency not less than five copies of such member's 
published current price lists covering all the brands and types of 
candy and confectionery products offered for sale by such member 
which price list shall become effective not less than five (5) days 
from the date of filing thereof. All filed price lists shall contain 
the number of pieces or bars contained in each unit offered for 
sale by count, and the net weights of such units offered for sale by 
weight and shall include all discounts, allowances, terms and con- 
ditions of sale. After the expiration of the said ten (10) days, each 
member shall at all times maintain on file with the Code Authority 
or its designated agency published price lists for all candy and 
confectionery products offered for sale, and shall adhere strictly 
to the prices and terms of such price lists and shall not make any 
change in such price lists except as herein provided.' 

Section 2. Following the filing with the Code Authority or its 
designated agency of the first price lists, any member of the indus- 
try desiring to change his price lists shall fiJe revised price lists 
with the Code Authority or its designated agency to become effective 
not less than five (5) days from the date of filing thereof. 

Section 3. All prices and/or terms and other conditions of sale 
so filed with the Code Authority or its designated agency as provided 
for in this Article shall be open to the inspection of members of 

' Sec paragraph 2 of order approving this Code. 



220 

the industry and buyers. Upon the request of anj member of the 
industry or buyer the Code Authority shall furnish such meniber 
or buyer copies of such prices and/or terms and other conditions 
of sale so filed provided, however, that the Code Authority may 
refuse such request unless such member or buyer shall pay the cost 
of such service, as established by the Code Authority subject to the 
disapproval of the Administrator. 

Section 4. This Article shall not apply to sales made between 
members of the industry. The Code Authority shall submit to 
the Administrator for his approval, a plan to govern sales between 
members of the industry. Following approval of such plan by 
the Administrator it shall become binding upon every member of 
the industry. 

Article VIII — Trade Practice Rules 

Rule 1. Inaccurate Advertising . — No member of the industry 
shall publish advertising (whether printed, radio, display or of 
any other nature), which is misleading or inaccurate in any ma- 
terial particular, nor shall any member in any way misrepresent 
any goods (including but without limitation its use, trademark, 
grade, quality, cjuantity, origin, size, substance, character, nature, 
finish, material, content or preparation) or credit terms, value poli- 
cies, services, or the nature or form of the business conducted. 

Rule 2. Inaccurate LaheJl'mg. — 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 buyers or ultimate consumers, with 
respect to the brand, grade, quality, quantity, origin, size, substance, 
character, nature, finish, material, content, or preparation of such 
goods. 

Rule 3. False Billing. — No member of the industry shall laiow- 
ingly withhold from or insert in any quotation or invoice any 
statement that makes it inaccurate in any material particular. 

Rule 4. Inaccurate Reference to Competitors. — No member of the 
inckistry shall publish advertising which refers inaccurately in any 
material particular to any competitors or their goods, prices, values, 
credit terms, policies or services. 

Rule 5. keUing Belong Cost. — (a) No member of the industry 
shall sell any candy at a price below cost, as determined pursuant 
to the provisions of Article VI, Section 14 (k) ; except that a mem- 
ber of the industry may meet the lower prices of a competitor 
whose prices are not in violation of this Code; provided, however, 
that such member shall re})ort iuimediately to the Code Authority 
the uame of such competitor, the sales price of the article or articles 
of candy involved and liis own cost thereon. 

(b) When the Code Authority determines that the sale of con- 
fectionery items in combination with any non-confectionery items 
will seriously endanger the maintenance of the provisions of this 
Code, the Code Authority shall submit its findings to the Adminis- 
trator for sucli action as lie may d('(>ni appropriate. 

(c) This pi'ovision shall not apply to distressed candy which may 
bf sold below the member's r-ost under any rules and regulations 
which the Code Authority shall p'rescribe, subject to the approval 
of the iVdniinistiator. 



221 

Rule 6. Destructive Price Ciitting. — (a) AVhen the Code Author- 
ity determines that an emergency exists in this industry and tb.at 
the cause thereof is destructive price-cutting such as to render ineffec- 
tive or seriousl}^ endanger the maintenance of the provisions of this 
Code, the Code Authority may cause to be determined the lowest 
reasonable cost of tlie 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 industry for which the low- 
est reasonable cost has been determined at such prices or upon such 
terms or conditions of sale that the buyer will pay less therefor than 
the lowest reasonable cost of such products, except pursuant to any 
rules and regulations which the Code Authority shall prescribe, 
subject to the approval of the Administrator. 

(b) When it appears that conditions have changed, the Code 
Authority, or the Administrator, upon its or his initiative, or upon 
the request of any interested party, shall cause the determination 
to be reviewed. 

EuLE 7. Threat of Lawsuits. — No member of the industry shall 
publish or circulate unjustified or unwarranted threats of legal pro- 
ceedings which tend to or have tlie effect of harassing competitors 
or intimidaling their customers. Failure to prosecute in due course 
shall be evidence that any such threat is unwarrant-ed or unjustified. 

EuLE 8. Rebates. — (a) No member of the industry shall secretly, 
directly or indirectly, offer or make any i:)ayment or allowances of a 
rebate, refund, commission, credit, unearned discount or excess 
allowances, whether in the form of money or otherwise. 

(b) Nor shall a member of the industry, directly or indirectly, 
offer or extend to any customer any special service or privilege not 
extended to all customers, under like terms and conditions in the 
same marketing area, for the purpose of influencing a sale, or with 
the eft'ect of influencing a sale. 

(c) This ]jrovision shall not be construed to prohibit the free 
and general distribution and installation of articles commonly used 
for advertising except so far as such articles are actually used for 
rebates as hereinabove defined, 

EuLE 9. Consignment Sales. — No member of the industry shall 
guarantee the sale of, or consign, goods to a buyer, except under 
any rules and regulations which the Code Authority may prescribe, 
subject to the approval of the Administrator, 

EuLE 10. Returned Goods. — No member of the industry shall allow 
a credit for unsold or returned merchandise greater in percentage 
or on conditions more favorable than the percentage of credit or 
conditions, alloAved to the member by the manufacturer of such 
merchandise. 

_EuLE 11. Brihing Emftoyees. — No member of the industry shall 
give, or permit to be given, or directly offer to give, anything of 
value for the purpose of influencing or rewarding "the action of any 
employee, agent, or representative of another in relation to the 
business of the employer of such employee, the j)rincipal of such 
agent or the represented party, without the knowledge of such em- 



222 

ployer, principal or party, or with the intent or the effect of inducing 
the purchase, or refusal to purchase, of any merchandise. This pro- 
vision shall not be construed to prohibit free and general distribution 
of articles commonly used for advertising except so far as such 
articles are actually used for commercial bribery as hereinabove 
defined. 

HuLE 12. Interference icith Another^ s Contracts. — No member of 
the industry shall wilfuly induce or attempt to induce the breach 
of an existing contract between a competitor or customer or source 
of supply; nor shall any such member interfere Avith or obstruct 
the performance of such contractual duties or services. 

Rule 13. Coercion. — No member of the industry shall require that 
a purchase or lease of any goods to be a prerequisite to the purchase 
or lease of any other goods. 

Rule 14. Blacldisting . — No member of the industry shall join or 
participate with other members of the industry who with such mem- 
ber constitute a substantial number of members of the industry or 
who together control a substantial percent of the business in any 
specific product or products of the industry, in any transaction known 
in law as a black list, including any practice or device (such as a 
white list) which accomplishes the purpose of a black list. 

Rule 15. Invoicing and Billing. — No member of the industry shall 
sell any merchandise, either on open account or for cash, unless 
an itemized bill or invoice on which is printed the name and address 
of the wholesaler and bearing the date and terms of sale is issued 
at the time such sale is made. 

Rule 16. Free Goods. — No member of the industry shall give or 
present to any buyer any goods, free of charge, or at any price below 
said member's published price list, filed pursuant to the provisions 
of Article VII of this Code. 

Rule 17. Fremkuiis. — No member of the industry shall give or 
present, free of charge, nor sell at a price below co.st to any buyer, 
an}^ premiums or prizes or similar devices, excepting display devices, 
furnished by the manufacturer, intended for advertising purposes.^ 

Rule 18. '^ Split-Box Sales. — No member of the industry shall sell 
merchandise at wholesale except in original box unit, packages or 
container,s as supplied by the manufacturer. This provision shall 
not apjdy to l)ulk merchandise packed in barrels, cases or pails which 
may be repacked and sold to buyers. 

Rule 19. Protection to Retailers. — It shall be an unfair trade 
practice for members of the industry to enter competition with re- 
tailers, by selling merchandise at wholesale prices to ultimate con- 
sumers for i)ersonal use. Nothing in this Section, h()\vever, shall 
prevent bona fide sales to employees in wholesale confectionery estab- 
lishments, for their personal use. 

Rule 20. Terms of Sale. — No member of the industry shall : 

(a) Allow a buyer terms in excess of two (2%) percent ca.sh dii^- 
count. 

(b) Alhnv any casli discount unless ])ayment is leceived or mailed 
within thirty (30) days from the date of shij)ment. 

(c) Allow any cash discount to a buyer when payment is n)ade 
by note or trade acceptance. 

•See paratirsiph 2 of ord< r aIlpl■llviIl.^' this I'oile. 



223 

(d) Post-date invoices. 

(e) Accept a note or trade acceptance from a buyer unless such 
note or trade acceptance bears interest at current legal rates from the 
due date of the invoice. 

Rule 21. No member of the industry shall .sell or distribute, the 
type of merchandise commonly referred to as " break and take ", 
" picks ", or '• draws ", or merchandise of a like character, serving 
tlie same purpose.* 

Rule 22. T evTitorkil Protection. — Yv^here a manufacturer has 
granted by contract an exclusive territory for the distribution of his 
products, to a member of the industry, the obtaining by another 
member, of such products and shipping same to buyers, within such 
territory is prohibited, unless such products are purchased from the 
exclusive agent in the territory where the merchandise is ultimately 
sold. 

Article IX — Compliance 

To further effectuate the policies of Title I of the Act : 

1. No member of the industry shall purchase any goods, wares or 
merchandise (hereinafter called goods), or services, used in the indus- 
try, vs'hich are manufactured or sold, in whole or in part, by a 
vendor who does not represent that he is in full compliance with the 
approved code of fair competition, agreement or license (if any) 
applicable to the industry of such vendor ; provided that any member 
of the industry, exercising due diligence in any such purchase of 
goods or services to comply- with the provisions hereof, shall not be 
deemed in violation hereof. Delivery of a certificate of such vendor 
that he or it is complying in every particular with the code, agree- 
ment or license applicable to such vendor, the display of proper 
NRA insignia, or the publication in a nev>^spaper or periodical of 
general circulation of such certificate of compliance or insignia 
shall constitute a good and sufficient representation of compliance 
hereunder. 

2. Upon application, or upon his own motion, the Administrator 
may grant exceptions or exemptions from provisions hereof if it 
shall appear — 

(a) that the vendor of any such goods or services is not subject to 
a code of fair competition, agreement or license approved under the 
Act; or 

(b) that compliance herewith would create undue hardship or 
injustice or would not tend to effectuate the purposes of this Code 
or the policy of the Act. 

(3) No member of the industry shall make or cause to be presented 
or published any such representation which shall be false in any 
material particular. 

Akticle X — Modification 

Section 1. This Code and all i\\& 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 



See paragraph 2 of order approving this Code. 



224 

time to cancel or modify any order, approval, license, rule or regula- 
tion issued under said Act. 

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

Article XI — Monopolies, Etc. 

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

Article XII — Price Increases 

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

Article XIII — Effective Date 

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

Approved Code No. 408. 
Registry No. 114-04. 

O 



Approved Code No, 459 
CODE OF FAIR COMPETITION 

FOR THE 

BOTTLED SOFT DRINK INDUSTRY 
As Approved on June 7, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Code of Fair Competition for the' Bottled Soft Drink 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 my approval of a Code 
of Fair Competition for the Bottled Soft Drink Industry, and 
hearings having been held thereon and the Administrator having 
rendered his report containing an analysis of the said Code of Fair 
Competition together with his recommendations and findings with 
respect thereto, and the Administrator having found that the said 
Code of Fair Competition complies in all respects with the pertinent 
provisions of Title I of said Act, and that the requirements of 
clauses (1) and (2) of subsection (a) of Section 3 of the said Act 
have been met: 

NOAV. THEREFORE, I, Franklin D. Roosevelt, President of 
the United States, pursuant to the authority vested in me by Title I 
of the National Industrial Recovery Act, approved June 16, 1933, 
and otherwise, do adopt and approve the report, recommendations, 
and findings of the Administrator, and do order that the said Code 
of Fair Competition be, and it is hereby, approved, provided, how- 
ever, that six months after effective date of this Code the Code 
Authority shall submit to the Administrator a study of the hours 
of labor, rates of pay, and other conditions of emplo3^ment within 
this Industry with the view of revising the wages, hours, and other 
conditions of employment as set forth in this Code. 

Franklin D. Roosevelt. 

Approval recommended : 
Hugh S. Johnson, 

Administrator. 

The White House, 

June 7, 193If. 

65900° 657-54 34 (225) 



LETTER OF TRANSMITTAL 

The President, 

The 'White House. 
Sir: This is a report on the Code of Fair Competition for the 
Bottled Soft Drink Industry, as revised after a Pubhc Hearing held 
in Washington, D.C., on March 9, 1934, in accordance with the pro- 
visions of the National Industrial Recovery Act. 

PROVISIONS OF THE CODE 

This Code provides a maximum work week of forty (40) hours, 
with a limitation of eight (8) hours per day and six (6) days in any 
seven (7) days' period; provided that for peak periods the following 
exceptions shall be allowed: (a) for any week and for periods not 
to exceed sixteen (16) weeks in any calendar year employees shall 
be permitted to work not over ten (10) hours in any one day nor in 
excess of forty-four (44) hours in any one week, and (b) for any 
week and for periods not to exceed six (6) weeks in any calendar 
year employees shall be permitted to work not over ten (10) hours 
in any one day nor in excess of fifty-four (54) hours in any one 
week. 

(a) During periods other than peak periods accounting, clerical, 
or other oiRce employees may be permitted to work nine (9) hours 
per day during any five (5) clays of each month, provided the weekly- 
limitation of hours above specified is not exceeded over any four (4) 
weeks' period. 

(b) Exemptions are made for executive, supervisory and technical 
employees, provided they receive regularly not less than thirty-five 
($35.00) dollars per week. 

(c) Route salesmen whose earnings or rate of pay are not less 
than twenty-two ($22.00) dollars per week during the peak periods 
permitted and twenty ($20.00) dollars per week during the remaining 
thirty (30) weeks, and their helpers. 

(d) Chauffeurs and deliverymen, provided that they shall be per- 
mitted to work not more than forty-eight (48) hours per week. 

(e) Engineers and firemen arc permitted ten per cent (10%) 
tolerance in excess of weekly hours of employment permitted. 

(f) Watchmen shall be permitted to work a maximum of fifty-six 
(50) hours per week. 

(g) The minimum wages are set at thirty-two and one-half 
(32Vi;^) cents an hour in the North and thirty (30^) cents an hour in 
the South. Office employee.s are under a minimum by population, 
starting at sixteen ($1G.00) dollars per week for cities of over 500,000 
population. A differential of two ($2.00) dollars per week is per- 
mitted for office boys and messengers. 

(220) 



227 

ECONOMIC EFFECT OF THE CODE 

The Bottled Soft Drink Industry, collectively, is an important 
industry, with a production volume of $179,000,000 in 1933. It gives 
employment to over 80,000 workers and has an estimated weekly 
payroll of approximately $2,000,000. However, individually it is an 
industry of small businesses. The average plant has but twelve (12) 
to thirteen (13) employees, with a capital investment of approxi- 
mately $25,000, and the business for the most part is local in 
character. 

It is important to bear in mind that this industry is very seasonal 
and, therefore, that the bulk of the business and consequently the 
profit-making period occur during the summer months. In normal 
years sixty per cent (60%) of the annual volume of business is done 
during May, June, July, August, and September. 

The Bottled Soft Drink Industry has suffered from the general 
economic conditions of the past two (2) or three (3) j^ears plus the 
entrance of competitive beverages into the field under the Act of 
March 22, 1933. It is estimated that in 1920 there were 14,000 
bottling plants in the United States. As a result of the conditions 
just described the number of plants fell to 6,600 and it is estimated 
that in 1933 the volume of business was fifty per cent (50%) of that 
in 1929. 

Competitive conditions in this industry, aggravated by the factors 
mentioned above, have almost brought the entire industry to the 
verge of demoralization. 

Public custom has fixed the retail price of soft drinks at five (5^) 
cents for the popular-sized bottle, so that this price has become an 
institution. Between eighty-seven (87%) and ninety per cent(90%) 
of the soft-drink business falls within this category. Past experience 
has proved that if this price is increased to an odd figure the sales 
fall off alarmingly. Thus, the margin of profit is narrowed down. 
It is very important, therefore, to eliminate from the industry some 
of the alleged unfair trade practices that have permeated the business 
for many years. 

It is estimated that under this Code of Fair Competition employ- 
ment in the present plants will be increased to six and six-tenths 
per cent (6.6%) and payrolls thirteen and eighty-one hundredths 
per cent (13.81%). With more stabilized conditions and the to-be- 
expected economic improvement, these percentages will doubtless 
be increased and new plants will come into operation. 

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

I find that : 

"(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 purposes of cooperative action among the trade groups, 
by inducing and maintaining united action of labor and management 
under adequate governmental sanctions and supervision, by eliminat- 



228 

ino; 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 standards of 
labor, and by otherwise rehabilitating industry. 

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

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

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

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

For the above reasons this Code is hereby recommended for 
approval. 

Respectfully yours, 

Hugh S. Johnson, 

A d'ministrator. 

June 6, 1934. 



CODE OF FAIR COMPETITION FOU THE BOTTLED SOFT 
DRINK 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 
Bottled Soft Drink Industry, and its provisions shall be the stand- 
ards of fair competition for such industry and shall be binding upon 
every member thereof. 

Article II — Definitions 

Section 1. As used in this Code: 

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

(b) The term "Association " means the American Bottlers of Car- 
bonated Beverages. 

(c) The term '' Bottled Soft Drink Code Authority " or the " Code 
Authority " means that code authority of the bottled soft drink in- 
dustry constituted in compliance with the provisions of Article VI 
and its duly authorized agents. 

(d) The term " Soft Drinks " means those nonalcoholic products 
commonly known as soft drinks, including those fully prepared ex- 
cept for the addition of plain or carbonated water, and includes 
carbonated fruit juices, and carbonated water (whether mineralized 
or not). 

(e) The terms " Bottled Soft Drink Industry ", or " Industry ", 
shall mean the manufacture and sale by the manufacturer of soft 
drinks in bottles or other closed containers. The term " Manufac- 
ture " includes (1) bottling, and/or (2) the manufacture of finished 
syrups for use in bottling by the maker thereof or under his super- 
vision or control by contract or otherwise. 

(f ) The terms " Member of the Industry " and " Bottler ", as 
used herein include, but without limitation, any individual, partner- 
ship, association, corporation or other form of enterprise engaged 
in the bottled soft drink industry, either as an employer or on his 
or its own behalf. 

(g) The term " Employee " includes any person engaged in the 
industry in any capacity, irrespective of the nature or method of 
payment for his services. 

(h) The term "Employer" as used herein includes anyone by 
whom such employee is compensated or employed. 

(i) The term "Outside Salesman" means any salesman who 
spends at least seventy-five per cent (75% ) of his working hours 

(229) 



230 

outside the establishment or any branch thereof of his employer, 
and who does not deliver merchandise. 

(j) The term " Route Salesman " means an employee selected and 
employed as a salesman, who carries and sells soft drinks on regu- 
larl}^ established routes, making delivery at the time of sale from 
the stock so carried. 

(k) The term " Deliveryman " means an employee engaged in 
delivery functions and who does not sell. 

(1) The term "Watchman" means an employee, ninety per cent 
(90% ) of whose working time is engaged in watching and guard- 
ing the premises of a member of the industry. 

(m) The term " State " includes territories and the District of 
Columbia. 

(n) The term " South " means the States of Alabama, Arkansas, 
Arizona, Florida, Georgia, Kentuclry, Louisiana, Mississippi, New 
Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, 
Texas, Virginia. 

(o) The term " Buyer " means any commercial buyer as dis- 
tinguished from ultimate consumer buyer. 

(p) Population, for the purpose of this Code, shall be determined 
by reference to the latest Federal Census. 

Article III — Hours 

Section 1. No employee, except as herein otherwise expressly pro- 
vided, shall be permitted to work in excess of eight (8) hours in 
any one day, or forty (40) hours in any one week; provided, that 
for peak periods the following exceptions shall be allowed — (1) for 
any week and for periods not to exceed sixteen (16) weeks in any 
calendar year employees may be permitted to work not over ten (10) 
hours in any one day nor in excess of forty-four (44) hours in any 
one week, and in addition (2) for any week and for periods not to 
exceed six (6) weeks in any calendar year employees may be per- 
mitted to work not over ten (10) hours in any one day nor in excess 
of fifty-four (54) hours in any one week. This Section shall be 
subject to the following exceptions : 

(a) During periods other than peak periods, accounting, clerical, 
or other office employees may be permitted to work nine (9) hours 
per day during any five (5) clays of each month, provided the weekly 
limitation of hours above specified is not exceeded during any four 
(4) weeks period. 

(b) Executive, supervisory, and technical employees, provided 
they receive regularly not less than thirty-five ($35.00) dollars 
per week. 

(c) Outside salesmen. 

(d) Route salesmen whose earnings are calculated wholly or in 

Sart on a commission basis and are not less than twenty-two ($22.00) 
ollars per week during the periods when other employees may bo 
permitted to worlc in excess of iort-y (40) hours per week, and 
twenty ($20.00) dollars per week durmg the remaining thirty (30) 
weeks, and their helpers. 

(c) Chauffeurs and deliverymen, provided that they shall not 
work more than forty-eight (48) hours per week. 



231 

(f) Engineers and firemen, provided their hours of employment 
shall not be more than ten per cent (109^) in excess of the weekly 
hours of employment specified in the first paragraph of this Section. 

(g) Watchmen may be permitted to work a maximum of fifty-six 
(56) hours per week, provided, however, that such employees shall 
not be permitted to work more than thirteen (13) days in any four- 
teen (14) day period. 

Section 2. No employee, except those under Subsections (b), and 
(g), of Section 1 of this Article shall be permitted to work more 
than six (6) days in any seven (7) day period. 

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

Article IV — Wages 

Section 1. No clerical, accounting, or other office employee shall 
be ])aid less than at the rate of: 

$16.00 per week in any town of over 500,000 pojndation and its 
immediate trade area. 

$15.00 per week in any town between 250.000 and 500,000 and its 
immediate trade area. 

$14.00 per week in any other place. 

However, office boys and messengers may be employed at a 
minimum rate of two ($2.00) dollars below the minimum wage 
otlierwise applicable, provided that not more than ten per cent 
(10%) of the total number of office employees in each establishment 
shall be so classified, but aii}^ establishment in the industry may so 
classify at least one office boy or messenger. 

Section 2. No employee other than those covered in Section 1 
shall be paid at the rate of less than thirty-two and one-half (32y2(*) 
cents per hour, except that in the South no employee shall be paid 
less than thirty (30(^') cents per hour, provided helpers on trucks 
shall be paid not less than eighty percent (80%) of the minimum 
rates herein provided. 

Section 3. This Article establishes minimum rates of pay which 
shall apply, irrespective of whether an employee is actually compen- 
sated on a time rate, piece-work, or other basis. 

Article V — General Labor Pro\isions 

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 detrimental to health. The Code Authority 
shall submit to the Administrator within ninety (90) days after 
approval of this Code by the President 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 cer- 
tificate 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. 

65905° 657-54 34^—2 



232 

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- 
lectivel}^ through representatives or their own choosing, and shall 
be free from the interference, restraint, or coercion of employers of 
labor, or their agents, in the designations of such representatives or 
in self-organization or in other concerted activities for the purpose 
of collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking ompioyment 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 ov\^n 
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 change the method of payment of 
employees' compensation, or reclassify employees or duties or occu- 
pations performed or discharge employees for the purpose of re- 
employing them at lower rates, or engage in any other subterfuge, 
for the purpose of defeating the purposes or provisions of the Act or 
of this Code. 

Section 4. No provision of this Code shall supersede any State 
or Federal law which imposes on employers more stringent require- 
ments as to age of emploj^ees, wages, hours of work, or as to safety, 
health, sanitary, or general working conditions, or insurance, or fire 
protection, than are imposed by this Code. 

Section 5. Wages shall be exempt from tines and rebates and from 
charges and deductions, except shortages, and except charges and 
deductions for contributions voluntarily made by employees to pen- 
sion, insurance or benefit funds, or required by law, or deductions 
for other purposes when provision therefor is made in a written con- 
tract between employer and employees. All such contracts must be 
kept on file by each employer for at least six (6) months after the 
termination of the contract, and, such contract shall bo open to the 
insi)ection of the Administrator or his agent. 

Section G. No employer shall withhold payment of wages to any 
employee after the customary date of payment for all employees 
immediately following the period in which such wages were earned, 
except on court order, or by law. No employer shall make payment 
of wages due in any other medium than lawful currency or nego- 
tiable check, payable on demand. 

Section 7. Wlierc male and female employees i:)erform substan- 
tially the same duties or do substantially the same work, they shall 
receive the same rate of pay. 

Section 8. Equitabl<>, adjustments required to effectuate the provi- 
sions of this Code and of the Act shall be made in employees' pay 
schedules above the minimum v/itliin thirty days after the api:)roval 
of this Code by any member of the industry who has not heretofore 
made such adjustments subsequent to July 15, 1933. The Code 
Authority sliall determine the fact of equitable adjustments by all 
memlxM-s of the industry and shall submit its findings to tlie Adminis- 
trato]- for liis approval. 



233 

In the equitable adjustment of pay schedules herein provided for 
as the result of the adoption of this Code, hourly Tv'age rates or full 
time weekly wages shall not be reduced except that when full time 
hours under this Code are reduced in excess of one-sixth below those 
preA'ailing prior to Jul}^ 15, 1933, employees shall be paid at a rate 
Avhich will provide for forty (40) hours work at least as much as 
they formerly received for forty-eight (48) hours. 

Section 9. A person whose earning capacity is limited because 
of age or physical or mental handicap may be employed in light 
work at wages below the minimum established by this Code, if tho 
employer obtains from the authority designated by the U.S. Depart- 
ment 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. 

Section 10. Each member of the industry shall post complete 
copies of the Articles of this Code relating to hours, wages, and 
generariabor provisions; and shall further 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. Such notices, bulletins and extracts of code 
provisions shall be written in English and such other languages 
as may be in general use throughout the plant, and shall be posted 
in places of easy and continuous access to employees. 

Section 11. It shall be the duty of the Code Authority to submit 
to the Administrator at the end of six (G) months from the effective 
date of this Code a statement shoAying the effect of the provisions 
upon employment and Avage levels, and the general condition of the 
industry. The Administrator may thereupon revise, after .such 
notice and hearing as he may require, the maximum hours and 
minimum Avage provisions of this Code to further carry out the 
purposes of the Act. 

Section 12. EA'ery employer shall provide for the safety and 
health of employees during the hours and at the places of employ- 
ment. Standards for safety and health shall be submitted by the 
Code Authority to the Administrator Avithin six (G) months after 
the effective date of this Code. 

Section 13. There shall be established an Industrial Relations 
Committee for the industry, Avhich shall consist of an equal number 
of representatives of employers and employees Avith an impartial 
chairman. Such committee shall deal Avith complaints and disputes 
relating to labor in accordance with rules and regulations issued by 
the Administrator. The Administrator shall appoint such impartial 
chairman upon the failure of the committee to select one by agree- 
jnent. The employee members of such board may be chosen by 
the Administrator. The employer representatives shall be chosen 
by the Code Authority. The Industrial Eelations Committee may 
establish such diAdsional, regional, and local industrial adjustment 
agencies as it may deem desirable, each of Avhich shall be constituted 
in like manner as the Industrial Kelations Committee, 



234 

Article VI — Code Authority* 

Section 1. Administration. — (a) There shall forthwith be con- 
stitiited a Code Authority for the Bottled Soft Drink Industry, to 
consist of five (5) persons elected in the following manner: 

(1) Four (4) persons who are members of the industry to be 
elected by the Executive Board of the American Bottlers of Car- 
bonated Beverages. 

(2) One (1) person who is a member of the industry, but not 
a member of the Association, to be elected by a majority of non- 
members of the Association at a meeting called for that purpose by 
the Executive Board of the American Bottlers of Carbonated Bev- 
erages. It shall be the duty of the Executive Board of the Amer- 
ican Bottlers of Carbonated Beverages to notify every ascertainable 
member of the industry who is a non-member of such Association 
of the time, place, and purpose of said meeting, and to further 
notify every such non-member of the Association that votes will 
be accepted by person, mail, or proxy. Each such non-member of 
the Association so voting shall be entitled to one vote. 

(b) The members of the Code Authority, when elected, shall be 
certified to the Administrator by the Executive Board of the Ameri- 
can Bottlers of Carbonated Beverages. 

Section 2. The term of office of each member of the Code Au- 
thority shall be from January 1 to December 31 of each calendar 
year. 

Section 3. In addition to the members of the Code Authority as 
above provided, there may be not more than three (3) members 
to be appointed by the Administrator, without vote, to serve for 
such terms as he may specify. 

Section 4. The American Bottlers of Carbonated Beverages, and 
each trade or industrial association directly or indirectly partici- 
pating in the activities of the Code Authority, shall (1) impose no 
inequitable restrictions on membership, and (2) submit to the Ad- 
ministrator true copies of its articles of association, bylaws, regula- 
tions 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 puri)oses 
of the Act. 

Section 5. In order that the Code Authority shall at all times 
be truly representative of the soft drink in(histry and in other 
respects comply with the provisions of the Act, the Administrator 
may prescribe such hearings as lie may deem proper; and thereafter 
if he shall find that the Code Authority is not truly representative 
or does not in other respects comply with the provisions of the Act, 
may require an appropriate modification in the method of selection 
of the Code Authority. 

Section 6. Nothing contained in this Code shall constitute the 
members of the Code Authority })artners for any purpose. Nor 
shall any member of such Code Authority be liable in any manner 
to anyone for any act of any other member, officer, agent, or em- 
ployee thereof. Nor shall any member of the Code Authority, exer- 

1 See paragraph 2 of order jippnuvinj,' thlH Code. 



235 

cising reasonable diligence in the conduct of his duties hereunder, 
be liable to anyone for any action or omission to act under this Code, 
except for his own wilful misfeasance or nonfeasance. 

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

POWERS AND DUTIES 

Sectiox 8. 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 this 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. 

(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 furnish 
such statistical information as the Administrator may deem ne. es- 
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 mem- 
ber 01 the industry or any other party except to such other Govern- 
mental agencies as may be directed by the Administrator, nor shall 
any provision of this Code be construed to require the disclosure of 
secret formulae. 

(d) To define marketing regions throughout the United States 
where necessary for the purpose of this Code, according to general 
uniformity of conditions and costs of purchasing, manufacturing, 
selling, and delivery of bottled soft drinks. 

(e) To receive from members of the industry such information 
as will enable it to compile cost statistics and to ascertain current 
costs of producing, selling, and delivery of the several sizes and 
types of bottled soft drinks in diif erent marketing regions throughout 
the United States. 

(f) To promulgate rules and regulations to effectuate the pur- 
poses of Section 5 of Article VII relating to deposits on containers, 
which rules and regulations, upon approval thereof by the Adminis- 
trator, shall become operative as a part of this Code. 

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



236 

(h) 1. It being found necessary, in order to support the adminis- 
tration of this Code and to maintain the standards of fair competi- 
tion establislied by tliis Code and to effectuate the policy of the Act, 
the Code Authority is autliorized, 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 nec- 
essary, (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 equi- 
table contribution as above set forth by all such members of the 
Industry, and to that end, if necessary, to institute legal proceed- 
ings 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 vol- 
untary activities or to make use of any emblem or insignia of the 
National Recovery Administration. 

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

(j) To use for the purpose of carrying out any of its activities 
provided for herein, such associations, regional agencies, committees, 
officers, agents, or employees as it deems proper, providing that 
nothing herein 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. 

(k) To appoint a 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 fair 
trade practices to govern the relationships between the production 
and distribution members of the industry under this Code and under 
such others, and that such fair trade practices may he proposed to 
the Administrator as amendments to this Code and to such other 
Codes. 

(1) 'J'lie Code Autliority sliall cause to be formulated an account- 
ing system and methods of cost findinjy and/or estimating capable of 
use by all members of the industry. After such system and methods 
have been formulated and have been approved by the Administrator, 
full details concerning them shall be made available to a,ll members. 
Thereafter all members shall determine and/or estimate costs in 
accordance with the principles of such methods. 



237 

(m) The Code Authority may issue such interpretations of the 
provisions of this Code as may be necessary to effectuate the opera- 
tion of and compliance with the policy of the Act, subject at all 
times to the approval of the Administrator, and upon approval such 
interpretations shall become operative as a part of this Code. 

Article VII — Unfair Methods or Competition 

The following practices constitute unfair methods of competition 
for members of the Soft Drink Industry and are a violation of this 
Code : 

Section 1. MisleaxUng Advertising. — No member of the industry 
shall publish advertising, (whether printed, radio, display, or of 
any other nature) which is misleading or inaccurate in any way or 
particular. 

Section 2. Use of Sugar Substitutes. — No member of the indus- 
try shall use saccharin in the manufacture of soft drinks, except 
such products as are prepared, advertised, labeled, and sold exclu- 
sively for special dietetic purposes. 

Section 3. Consignments. — No member of the industry shall ship 
or deliver goods on consignment, except under circumstances to be 
defined by the Code Authority subject to disapproval by the Ad- 
ministrator. 

Section 4. Selling Beloto Reasonahle Cost. — When the Code Au- 
thority determines that an emergency exists in this industry and 
that the cause thereof is destructive price-cutting such as to render 
ineffective or seriously endanger the maintenance of the provisions 
of this Code, the Code Authority may cause to be determined the 
lowest reasonable cost of the products of this industry, such deter- 
mination to be subject to such notice and hearing as the Administra- 
tor may recpiire. 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 j^roducts of the industry 
for which the lowest reasonable cost has been determined at such 
prices or upon such terms or conditions of sale that the buyer will 
pay less therefor than the lowest reasonable cost of such products. 

in the determination of such lowest reasonable cost, the Code 
Authority and the Administrator shall give due consideration to 
such facts and statistics as may be available from survej's conducted 
by the Association and from such accounting systems acceptable 
to the Administrator as are in the use in the Industry. 

When it appears that conditions have changed, the Code Author- 
ity, upon it-s own initiative or upon the request of any interested 
party, shall cause the determination to be reviewed. 

The Code Authority shall give notice to all interested members 
of the industry, immediately upon the determination and establish- 
ment of lowest reasonable costs of bottled soft drinks in any market- 
ing area, specifying the date or dates beyond which sales of bottled 
soft drinks below such reasonable costs are prohibited. 

Section 5. Inadequate Deposits on Containers. — (a) No member 
of the industry shall loan cases, bottles, siphons, or other contain- 
ers of soft drinks to retailers or other customers without an adequate 
deposit to insure their return and to cover probable loss or breakage. 



238 

(b) To effectuate the purposes of this provision a deposit shall be 
required on all cases, bottles, siphons, cartons, or other containers 
loaned to customers, on the same terms as the terms of the sale of 
the contents thereof, at such fair and reasonable minimum rate of 
deposit for that particular marketing region as may be determined 
and prescribed by the Code Authority, with the approval of the 
Administrator, All shortages of bottles, siphons, cases, cartons, 
or other containers shall be collected for by the bottler at not less 
than the rate of deposit so prescribed. No allowance shall be made 
for bottles, siphons, cases, cartons, or other containers returned 
which is greater than the original charge or deposit made for them. 

Section 6. Open Pr/r^.s.— Whenever the Code Authority deems it 
necessary in order to effectuate the purposes of this Code and of the 
Act, members of the industry in any area may be required to file 
price schedules with the Code Authority and/or with such local or 
regional agencies thereof as it may designate, under rules and regu- 
lations approved by the Administrator. 

Section 7. Secret Price Concessions. — No member of the industry 
shall knowingly permit a sales representative to use any part of his 
selling compensation to make a secret price concession. 

Section 8. Direct and hxdirect Price Concessions. — No member 
of the industry shall make any direct or indirect price concession 
to any buyer in the sale of any soft drinks, and no member of the 
industry shall offer or give to any buyer any free goods, prize, 
premium, gift, straws, ice, allowance for advertisino^, or allowance 
for window displays in connection with, or as an inducement to the 
purchase of bottled soft drinks. Nothing herein, however, shall inter- 
fere with the promotion of business by any bottler through bona 
fide distribution of samples at his own expense, or with cooperative 
advertising in connection with any dealer at the cost of the adver- 
tising, nor shall this provision be construed to prohibit the free and 
general distribution of articles commonly used for advertising. 

Section 9. Use of Equijrtnent. — No member of the industry shall 
give away, loan, or rent coolers, ice boxes, refrigerators, or other 
equipment for bottled soft drinks (except bottle openers, display 
racks or stands, or advertising material or signs) to regularly estab- 
lished dealers but such equipment may be sold to such dealers at 
not less than cost to the bottler, subject to such terms and condi- 
tions as the Code Authority may authorize, with the approval of the 
Administrator: Provided, however, used or reclaimed equipment 
may be sold at fair market price; and provided further, loaning or 
renting of such equipment for temjiorary or impromptu occasions 
shall not be considered a violation of this Section. 

Section 10. Trade Interference. — No member of the industry 
shall : 

(a) Wilfully fill or use bottles or cases of a competitor, or wil- 
fully collect, retain, or destroy bottles, siphons, cases, or other con- 
tainers owned by others, for the purpose of depriving such owners 
of the use thereof; or 

(b) Desti'oy, mutilate, or otherwise interfere with the advertising 
of a competitor. 



239 

Section 11. C ompulsory Purchases. — No member of the industry 
shall compel a buyer to purchase one product in order to obtain 
another. 

Section 12. Prizes and Premiums. — No member of the industry 
shall offer any prize or premiums or other gifts in pursuance of a 
plan involving lottery or fraud or deception. 

Section 13. Goviviercial Bribery. — No member of the industry 
shall give, permit to be given, or directly offer to give, anything of 
value for the purpose of influencing or rewarding the action of any 
employee, agent, or representative of another in relation to the busi- 
ness of the employer of such employee, the principal of such agent, 
or the represented party, without the knowledge of such employer, 
principal or party. This provision shall not be construed to pro- 
hibit free and general distribution of articles commonly used for ad- 
vertising except insofar as such articles are actually used for com- 
mercial bribery as herein defined. 

Section 14. Defmnation — Breach of Contract. — No member of 
the Industry shall defame a competitor by uttering false and dis- 
paraging statements about him or his merchandise or his business, 
or interfere with liis business by inducing a breach of his contracts. 

Article VIII — Violations 

Section 1. Members of the soft drink industry, the Code Author- 
ity, and the agents of any of them, shall use their best efforts to in- 
sure compliance with this Code. Violations of the Code may be 
communicated to the Code Authority, or to any regional or local 
representative designated by the Code Authority to receive such 
communications, in the form of a written complaint supported by 
all available substantiating evidence. 

Section 2. The Code Authority shall endeavor to arbitrate such 
complaints, and report to the Administrator the facts and circum- 
stances of any unadjusted alleged violations for such action as he 
may deem appropriate. 

Article IX — Export Trade 

Section 1. No provision of this Code relating to prices or terms 
of selling, shipping, or marketing shall apply to export trade or 
sales or shipments for export trade. 

Article X — Modification 

Section 1. (a) This Code may be amended or supplemented from 
time to time upon the submission by or through the Code Authority 
and approval of the President of such amendments or supplements 
as may be deemed necessary. 

(b) Nothing in this Section shall be construed to deprive any in- 
dividual member of the industry of his right to petition the Presi- 
dent directly regarding an amendment to this Code or any other 
related matter. 

(c) This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the provi- 



240 

sions of subsection (b)-of Section 10 of the National Industrial Re- 
covery Act, from time to time to 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. 

Article XI — Monopolies 

Section 1. No provision of this Code shall be so applied as 
to permit monopolies or monopolistic practices, or to eliminate, 
oppress, or discriminate against small enterprises. 

Article XII — Effective Date 

Seciton 1. This Code shall become effective on the first Monday 
following the tenth day after its approval by the President. 



Approved Code No. -ISO. 
Registry No. 102-07. 



o 



Approved Code No. 460 

CODE OF FAIR COMPETITION 

FOR THE 

PRESERVE, MARASCHINO CHERRY AND GLACE 
FRUIT INDUSTRY 

As Approved en June 8, 1934 



ORDER 



Code of Fati: Competition for the Preserve, Maraschino Cherry 
AND Glace Fruit Industry 

An applicati(jn having been duly made pursuant to and in full 
comp.ianee v\'ith the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1983. for approval of a Code of 
Fair Competition for the Preserve. Maraschino Cherr}^ and Glace 
Fruit Indu.str}', and hearin^js having- been, duly held thereon and the 
annexed report on said Code, containing findings with respect 
thereto, havinir been made and directed to the President: 
^ N0^^^ therefore, on behalf of the President of the United 
States, I, Hugh S. Johnson. Administrator for Industrial Recovery, 
jnirsuant to authority vested in me by Executive Orders of the Presi- 
dent, including Executive Order No. 6543-A, dated December 30, 
1033, and otherwise, do hereby incorporate by reference said an- 
nexed re])ort and do find that said Code complies in all respects 
with the pertinent provisions and will j^romote the policies and 
purposes of said Title of said Act; and do hereby' order that said 
Code of Fair Competition be and is hereby approved: provided, 
however. (1) that the provisions of Article VII. Section 4, para- 
graph (c). insofar as they prescribe a waiting period between the 
filing with the Code Authority and the effective date of revised 
schedules and prices, discounts, terms and conditions of sale be and 
they are hereby stayed pending my further order, either within 
sixty (60) days from the effective clat'C of the Code or after com- 
]iletion of a study of open price associations now being conducted 
by the National Recovery Administration, and provided further, 
(2) that the provisions of Sections 5 and 6, Article IV be and they 
are hereby stayed pending my further order, either Avithin sixty 
(60) days from the effective date of the Code or until such time as 
it shall be shown that the said provisions are necessary, proper and 
practical. 

Hugh S. Johnson, 
A dmiriisirator for rndustrial Recovery. 

Approval recommended : 
Armin W. Riley, 

Divmon Administrator. 

Washington, D.C, 

Jwn£ 8, 193J^. 

65994° 657-58 34 (241) 



REPORT TO THE PRESIDENT 

The Pkesident, 

The ^YMt€ Bouse. 
Sir: This is a report on the Code of Fair Competition for the 
Preserve, Maraschino Cherry and Ghice Fruit Industry, and on the 
Pubhc Hearing held in Washington, D.C., on February 2G, 1934, in 
accordance with the provisions of the National Industrial Recovery 
Act. 



The Code for the Preserve, Maraschino Cherry and Glace Fruit 
Industry will mean, it is estimated, an increase in plant employees 
in the Preserve Division of the Industry of about 47.2 per cent over 
1932. The estimated increase, exclusive of reemployment payrolls, 
in weekly plant payrolls under this Code over pre-President's Re- 
employment Agreement for Northern plants is 3.1 per cent, and 
for Southern plants is 24.3 per cent. 

In the Maraschino Cherry and Glace Fruit Division of the Indus- 
try the estimated increased employment for plant employees will be 
46.6 per cent over 1932. Estimated increase, exclusive of reemploy- 
ment payrolls, in weekly plant payrolls under this Code and over 
pre-President's Reemployment Agreement for Northern plants, is 
13.8 per cent, and for Southern plants, is 29 per cent. 

In the Preserve Division of the Industry in the North, the 52.5 
per cent of tlie male employees who received an average of thirty-two 
cents (32^) per hour will be raised to at least fort}^ cents (40^) 
per hour, and the 90.6 per cent of the female employees who received 
an average of twenty-three cents (23^) per hour will be raised to 
at least thirty -two and one-half cents (321/0^) per hour. In the 
South the 72.2 per cent of the male employees who received an 
average of twent3^-seven cents (270) per hour will be increased to 
at least thirty-five cents (35^) ])er hour, and the 94.4 per cent of 
the female employees who received an average of twelve cents (12^) 
per hour \\\\\ ho increased to at least twenty-five cents (250) per 
hour. 

In the JNIarascliino Chorry and Glace Fruit Division of the In- 
dustry, the 63.9 per cent of the male employees, both North and 
Sfjuth, v\'ho in 1932 received an average of thirty-one cents (310) 
per lionr, will be increased to at least foi-ty cents (400) per hour, 
and the 95 per cent of the female employees who received an average 
of eighteen cents (180) jjer lioui- will bi; increjised to at least thirty 
cents (300) per honr. 

In the Preserve Division of the Industry, those male employees, 
both North and Soutli, who in 1932 worked an average of 58.6 hours 
per week, and those female em])loyees who averaged 52.6 hours per 
week, will he r^Mhiccd to forty (40) hours. 

(242) 



243 

In the Maraschino Cherry and Glace Fruit Division of the Indus- 
try, those male employees in both the North and South who in 1932 
worked an average of 55.5 hours per week, and those female em- 
ployees in both the North and South who worked an average of iii:y 
(50) hours per week, will be reduced to forty (40) hours. 

Due to the low pre-code rates in both divisions of the Industry, 
employees in the South aggregating somewhat less than one-fourth 
of all the Avorkers of the Industr}' will receive under this Code a 
relatively greater increase in hourly rates than the remaining three- 
fourths of the workers in the North. It is further pointed out that 
the high percentage of reemployment anticipated by the reduction 
to a forty (40) hour week will result in a greater increase in em- 
ployment in the North than in the South. In anticipation of the 
high percentage of reemployment in this Industry and the pro- 
vision for the equitable adjustment of all wage earners above the 
mininunn, there will b^ a material increase in the purchasing power 
of wage earners in this industry. 

In the Preserve Division of the Industry the volume has steadily 
decreased from a peak in 1929 of $18,447,839 to $9,739,290 in 1932. 
There has been an increase in 1933 over 1932 to $10,832,716, and 
in the Maraschino Cherry and Glace Fruit Division of the Indus- 
try there has been a decrease from $4,504,829 in 1929 to $3,221,869 
in 1932. and $3,079,728 in 1933. 

The Industry as a whole estimates employment in both branches 
of the Industrv, including office emplovees, of about 3.808 in 1929, 
3,321 in 1932. \ind 4.363 in 1933. In' 1933 employment for both 
divisions of the Industry represented an increase of 14.6 per cent 
over 1929 and 31.4 per cent over 1932. The increased employment in 
1933 is due, no doubt, to the President's Reemployment Agreement. 

The National Preservers Association is a trade association, truly 
representative of the Industry, and imposes no inequitable restric- 
tions on membership. 

IIOUKS 

The Code for the Preserve, Maraschino Cherry and Glace Fruit 
Industry provides for a nuiximum work week of forty (40) hours, 
with the limitation of nine (9) hours per day and six (6) days in 
any seven (7) day period. There are the usual exceptions, complete 
or partial, in the case of executive, managerial or technical employees 
who regularly receive not less than thirty-five dollars ($35.00) per 
week in cities of more than 100,000 population, and thirty dollars 
($30.00) per week in cities or towns of less than 100,000 population, 
and outside salesmen, and truck delivery salesmen who regularly 
receive not less than thirty dollars ($30.00) per week in cities of 
100,000 population or over, or twenty-five dollars ($25.00) per w^eek 
in cities or towns of less than 100,000 population averaged over a 
four week period. Watchmen may be jDcrmitted to work not more 
than fifty-six (56) hours per week, truck drivers may be permitted 
to work not more than forty-eight (48) hours per week. Cooks and 
cooks' helpers may be permitted to work not more than forty-four 
(44) hours per week, engineers and firemen m.ay be permitted to 
work not more than forty-four (44) hours per week. Foremen and 
foreladies ma}' be permitted to work not more than forty-four (44) 



244 

hours per week. In the case of truck delivery salesmen, employers 
shall lay out routes which under normal conditions shall not exceed 
nine (9) hours from the time of leaving to the time of arriving at 
the plant or other base point, with one (1) hour allowed for lunch. 
During periods when perishable fresh fruits are being received, but 
not to exceed twelve weeks in any calendar year, employees engaged 
in the receiving and immediate processing necessarily connected with 
such perishable fruit may work in excess of a total of all working 
hours per day or ])er week provided in this Code for the class of work 
performed, provided that such overtime shall not exceed eight (8) 
hours in any week. 

During periods of inventory and financial closing, office employees 
may be permitted to work in excess of the normal number of work- 
ing hours not to exceed four (4) hours in any month. During 
periods of emergency repair and emergency maintenance work in- 
volving breakdowns or the protection of life and property, employees 
may be permitted to work in excess of the total working hours per 
day or per week. 

In the Maraschino Cherry and Glace Fruit Division of the In- 
dustry, during the period between August 15 and December 1, may 
be permitted to work forty-eight (48) hours per week. However, 
for all time worked in excess of forty-four (44) hours, time and one- 
third the normal rate of pay shall be paid to all employees. 

In the case of foremen and foreladies, all time worked in excess of 
forty (40) hours shall be compensated by at least time and one- 
third the normal rate of pay. 



Male employees in the Preserve Division of the Industry shall 
be paid at the rate of not less than forty cents {'iOit) per hour, 
except that in the South male employees shall be paid at a rate of 
not less than thirty-five cents (35<^) per hour. 

Female employees in the Preserve Division of the Industry shall 
be paid at a rate of not less than thirty-two and one-half cents 
(32i/^(,i) per hour, except that in the South no female employee 
shall be paid at a rate of less than twenty-five cents (25^^.) ])er hour. 

Male employees in the Marascliino Cherry and Glace Fruit Divi- 
sion of the Industry shall be paid at a rate of not less than forty cents 
(40^^) ])er hour, and female employees in tlie Maraschino Cherry and 
Glace Fruit Division of the Industry shall be paid at the rate of not 
less than thirty cents (300) ])er hour. It is provided, however, 
that female employees, when paid on a piece rate basis, sliall be paid 
as follows. 

The j)iece rate for each of sixty per cent (G0%) of tlie enii)loyees 
employed on eacli operation shall yiehl to such employees at least 
the juinimum rate of tliirty cents (300), and if for any reason the 
established i)iec(! rat(!s do not so yiehi, (lien a percentage of increase 
sufficient to so yiehl shall be added to the earnings of all such 
employees. 

It is fuidicr ])r(A'ided that any ])iece work employee v/hose earn- 
ings, including any adjustment as ])rovide(l for in the pervious 
paragraph, have not averaged within five cents (50) per hour of the 
applifable minimum hourly rates, shall have added to his earnings 



245 

an amount sufficient to yield to such employee not less than five 
cents (5^) per hour below the applicable minimum hourly rat€. 
It is further provided that an independent system of payroll audit 
be developed for both time and piece workers within thirty (30) 
days after the effective date of this Code, such system to be subject 
to approval by the Administrator and put into effect as soon there- 
after as the Administrator may require. It is further provided 
that the cost of such aiulit. subject to review^ by the Administrator, 
shall be prorated by disti-icts to the members of the Industry in such 
districts. ]\Iembers of this division of the Industry shall furnish 
the Administrator or his duly accredited representative such labor 
payroll statistics on time and piece workers as may be deemed neces- 
sary for the purposes of determining; that the provisions of this 
Section are being complied with in every respect. However, further 
study of the effects, as well as the jDracticability of Sections 5 and 
G of Article IV relating to piece rates appears necessary and in the 
order of approval these provisions have been stayed for 60 days 
or until such other time as the Administrator may require. 

Watchmen are to be paid not less than at the rate of eighteen 
dollars ($18.00) per week; office employees are under the minimum 
by population, starting at sixteen dollars ($16.00) per week in cities 
of over 500,000 population, to fourteen dollars ($14.00) per week 
in cities or towms of less than 250,000 population, with the usual 
exception for office boys and messengers, who may receive two dol- 
lars ($2.00) below the above minimum rates set forth. In no case, 
however, shall office boys and messengers exceed ten per cent (10%) 
of the total number of office employees of any one employer. 

Tliere is the usual provision for overtime payment for all time 
worked on Sundays and holidays except by persons employed in 
a managerial, executive or technical capacity, outside salesmen 
and watchmen. No person under sixteen years of age shall be 
emphn'cd hi the Industry. 

ilie 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 tluit : 

(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 
counnerce which tend to diminish the amoimt 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), and 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. 



246 

(c) The Code as approved complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7, 
and Subsection (b) of Section 10 thereof; and that the applicant 
association is a trade 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 or the right to be heard prior to approval of said Code. 

For the above reasons, this Code has been approved. 
Kespectfully, 

Hugh S. Johnson, 

lidviimstrator. 
June 8, 1934. 



CODE OF FAIK COMPETITION FOR THE PRESEEVE, 
MARASCHINO CHERRY AND GLACE FRUIT INDUSTRY 

Article I — Purposes 

To effectuate the policies declared by Title I of the National In- 
dustrial Recovery Act, the provisions of this Code are established as 
a Code of Fair Competition for the Preserve, Maraschino Cherry 
and Glace Fruit Industry, and shall be the standards of Fair Com- 
petition for such Industry and shall be binding upon every member 
thereof. 

Article II — Definitions 

Section 1. The term " President " as used herein means the Presi- 
dent of the United States. 

Seciton 2. The terms "Act " and "Administrator " as used herein 
mean respectively Title I of the National Industrial Recovery Act, 
and the Administrator for Industrial Recovery. 

Section 3. The term " Member of the Industry " as used herein 
includes, but without limitation, any individual, partnership, associa- 
tion, corporation, or other form of enterprise engaged in the Indus- 
try, whether as an employer or on his or its own behalf. 

Section 4. The term " Code Authority " as used herein means 
the Code Authority provided for in Article VIII of this Code. 

Section 5. The terms " Preserve, Maraschino Cherry and Glace 
Fruit Industry " and " Industry " as used herein mean the manu- 
facture on a commercial scale and subsequent sale by the manufac- 
turer of products of the Industry. 

Section 6. The term " Preserve Division of the Industi-y " as used 
herein means that part of the Industry whose products are any 
of those products of the Industry set forth in Subsection (a) of 
Section 8 of this Article. 

Section 7. The term " Maraschino Cherry and Glace Fruit Divi- 
sion of the Industry " as used herein means that part of the Indus- 
try whose products are any of those products of the Industry set 
forth in Subsection (b) of Section 8 of this Article. 

Section 8. The term " Products of the Industry " as used herein 
means 

(a) Fruit jams, fruit preserves, fruit jellies, fruit marmalade, 
fruit pie fillings, fruit butters, compounds, mixtures and imitations 
thereof; and 

(b) Maraschino-type cherries, glace fruit, candied fruit and 
candied fruit rind. 

Section 9. The term " employee " as used herein means any and 
all persons engaged in the Industry, however compensated, except 
a member of the Industry. 

05994° 657-58 34 2 (247) 



248 

Section 10. The term " employer " as used herein means any per- 
son by whom any such employee is compensated or employed. 

Section 11. The term " State " as used herein includes any State 
or Territory and the District of Columbia. 

Section 12. The term " truck delivery salesman " as used herein 
means any employee who regularly delivers merchandise that he 
sells. 

Section 13. The term " outside salesmen " as used herein means 
only employees whose principal function is selling outside of the 
establishment and who do not ordinarily deliver merchandise. 

Section 14. The term " watchmen " as used herein means employ- 
ees whose principal function is guarding the premises of the estab- 
lishment of a member of the Industry. 

Section 15. Population, for the purposes of this Code, shall be 
determined by reference to the latest Federal Census. 

Section 16. The term " South " as used herein means the States 
of Virginia, North Carolina, South Carolina, Georgia, Florida, 
West Virginia, Kentucky, Tennessee, Alabama, Mississippi, Loui- 
siana, Arkansas, Oklahoma and Texas. 

Article III — Maximum Hours 

Section 1. No employer shall permit any employee to work in 
excess of forty (40) hours in any week, or more than nine (9) hours 
in any twenty-four (24) hour period, except as herein otherwise 
provided. 

(a) Watchmen, provided they shall not be permitted to work 
more than fifty-six (66) hours per week. 

(b) Truck drivers, provided they shall not be permitted to work 
more than forty-eight (48) hours per week. 

(c) Cooks and cooks' helpers, provided they shall not be permitted 
to work more than forty-four (44) hours per week. 

(d) Engineers and firemen, provided they shall not be permitted 
to work more than forty-four (44) hours per week. 

(e) Foremen and foreladies, provided they shall not be permitted 
to work more than forty-four (44) hours per week. 

Section 2. The provisions of this Article shall not apply to per- 
sons employed in a managerial, executive or technical capacity who 
regularly receive not. less than thirty-five ($35.00) dollars per week, 
in cities of more than 100,000 population, and thirty ($30.00) dollars 
per week in cities or towns of less than 100,000 population or to 
outside salesmen. 

Skc'j ion 3. The provisions of this Article shall not apply to truck 
delivery salesmen, provided that they regularly receive not less than 
thirty "($30.00) dollars per week in" cities of 100,000 i)opulation or 
over, or twenty-five ($25.00) dollars per week in cities or towns of 
less than 100,0^0 r)oi)idation, averaged over a four (4) weeks period. 

Section 4. It sluill be the duty of employers to lay out routes 
for tiuck delivery salesmen such that undei- noi-mal conditions the 
total time required to complete tho. route shall not exceed nine (9) 
hoius from the time of leaving to the time of airiving at the plant 
or other base point, with one (1) hour allowed for lunch. 

SixTioN 5. No employer sliall knowingly jjermit any employee 
to work for a total number of hours in excess of the number of hours 



249 

prescribed for his occupation, for each week and day, whether 
employed by one or more employers. 

Section 6. (a) During the period when perishable fresh fruits 
are being received, but not to exceed twelve (12) weeks in any cal- 
endar year, employees engaged in the receiving and immediate proc- 
essing necessarily connected with such perishable fresh fruit may 
be permitted to work in excess of the total number of working hours 
per day or per week provided in this Code for the class of work 
performed by such employees, provided that such overtime shall 
not exceed eight (8) hours in any week. 

(b) During periods of inventory and financial closing, office em- 
ployees may be permitted to work in excess of the total working 
hours per day or per week provided in the Code, provided that 
such overtime shall not exceed four (4) hours in any month. 

(c) During periods of emergency repair and emergency mainte- 
nance work, involving breakdowns, or the protection of life and 
property, employees may be permitted to work in excess of the total 
working hours per day or per week provided in this Code for the 
class of work performed by such empkwees. 

(d) For all time worked in accordance with Subsections (a) and 
(c) of this Section, employees shall be compensated by at least one 
and one-third times the normal rate of pay; provided that it shall 
not be required that persons employed in a managerial, executive 
or technical capacity who regularly receive not less than thirty- 
five ($35.00) dollars per week in cities of more than 100,000 popu- 
lation, and thirty ($30.00) dollars per week in cities and towns of 
less than 100,000 population shall be compensated for such overtime 
at overtime rates. 

(e) During the period between August 15 and December 1, when 
products specified in Subsection (b). Section 8 of Article II, are 
being processed employees in the Glace Fruit and Maraschino Cherry 
Division of the Industry may be permitted to work not more than 
forty-eight (48) hours per week. 

(f) For all time worked in accordance with Subsection (e) of 
this Section in excess of forty-four (44) hours in any week employ- 
ees shall be compensated by at least one and one-third times the 
normal rate of pay; provided that it shall not be required that 
persons employed in a managerial, executive or technical capacity 
who regularly receive not less than thirty-five ($35.00) dollars per 
week in cities of more than 100,000 population, and thirty ($30.00) 
dollars per week in cities and towns of less than 100,000 population 
shall be compensated for such overtime at overtime rates. 

(g) For all time worked by foremen and foreladies in excess of 
forty (40) hours per week they shall be compensated by not less 
than one and one-third times their normal rate of pay. 

(h) Monthly reports shall be made to the Code Authority by 
each member of the Industry, stating all times worked by each em- 
ployee of such member of the Industry in accordance with the pro- 
visions of this Section and the reasons therefor. 

Section 7. No employee (except persons covered by Section 2 
of this Article) shall be permitted to work more than six (6) days 
in any seven (7) day period. 



250 

Article IV ^ — ^Wages 

Section 1. (a) No male emploj-ee in the Preserve Division of the 
Industry shall be paid at a rat'3 of lets than forty (40(^') cents per 
hour, except that in the South no male employees* shall be paid at 
a rate of less than thirty-five (35?*) cents per hour. 

(b) No female emjsloyee in the Preserve Division of the Industry- 
shall be paid at a rate of less than thirty -two and one-half (32140) 
cents per hour, except that in the South no female employee shall 
be paid at a rate of less than twenty-five (25^) cents per hour 

(c) No male emploj'^ee in the Maraschino Cherry and Glace Fruit 
Division of the Industry shall be paid at a rate of less than forty 
(40?') cents per hour. 

(d) No female employee in the Maraschino Cherry and Glace 
Fruit Division of the Industry shall be paid at a rate of less than 
thirty (300) cents per hour, except as may be permitted under the 
provisions of Section 5 of this Article. 

Section 2. No person employed in clerical or office work shall 
be paid less than at the rate of sixteen ($16.00) dollars per week, 
in cities of over 500,000 population or in the immediate trade area 
thereof, or less than at the rate of fifteen ($15.00) dollars per week 
in cities of between 250.000 and 500,000 population or in the imme- 
diate trade area thereof, or less than at the rate of fourteen ($14.00) 
dollars per week in cities or towns of less than 250,000 population; 
except that office boys and messengers may be paid at a rate below 
the above minima, provided, however, that they shall not be paid 
at .a rate which is more than two ($2.00) dollars below the mini- 
mum rate otherwise applicable as above set forth. When more than 
one employee is classified and paid as an office boy or messenger, 
not more than ten (10%) per cent of the total number of office 
employees of any one employer shall be so classified or paid. 

Section 3. Watchmen shall be paid at a rate of not less than 
eighteen ($18.00) dollars per week of fifty-six (56) hours. 

Section 4. Pwcewoi'k C oinpeiisation — Minimimn Wages. — This 
article establishes a minimum rate of pay which shall apply, ir- 
respective of whether an employee is actually compensated on a time- 
rate, piece-work, or other basis, except as provided in Section 5 
of this Article. 

Section 5. Female employees in the Maraschino Cherry and 
Glace Fruit Division of the Industry, when paid on a piece rate 
basis, shall be paid as follows: 

(a) The piece rates for each one of sixty (60%) per cent of the 
employees employed on each operation (except permit workers, i.e. 
handicapped persons, classified under Section 9 of this Article) shall 
yield to such employees, computed over the employers' customary 
payroll })eriod (but not longer than semi-monthly), at least the ap- 
plicable minimum rate specified in Section 1, Subsection (d) of this 
Article, and if for any such period the established piece rates for any 
such operation do not so yield, then a percentage of increase suffi- 
cient U) so yield shall be added to the earnings of all employees 
(including permit workers) on such operations for such payroll 
period. 

' See paragraph 2 "of order approving this Code. 



251 

(b) Any piece-work employee (except- permit workers, i.e. handi- 
capped persons, classified under Section 9 of this Article) whoso 
earnings for such payroll period, including any adjustment as pro- 
vided for in Subsection (a) of this Section have not averaged Avithin 
five (50) cents per hour of the applicable minimum hourly rate, shall 
have added to his earnings for such payroll period an amount suffi- 
cient to yield to such employee not less than five (50) cents per hour 
below the applicable minimum hourly rate. 

Sp:ctiox C. Audit System. — (a) For the Maraschino Cherry and 
Glace Fruit Division of the Industry the Code Authority, within 
thirty (30) days after the effective date of this Code, shall develop 
a system of independent payroll audit for both time and piece 
woricers. This system shall be subject to approval by the Admin- 
istrator, and put into effect as soon thereafter as the Administrator 
may require. The Code Authority, subject to review by the Admin- 
istrator, shall prorate the cost of such audit by districts to the mem- 
bers of tlie Industry in such district. 

(b) Members of the INIaraschino Cherry and Glace Fruit Division 
of the Industry shall furnish the Administrator or his duly ac- 
credited representative such labor payroll statistics on time and 
piece workers as he may deem necessary for the purpose of deter- 
mining that the provisions of this Section are being complied with 
in every respect. 

Section 7. Evasion Through Reemployment. — No employee now 
employed at a rate in excess of the minimum shall be discharged and 
reemployed at a lower rate for the j^urpose of evading the provisions 
of this Code. 

Section 8. Female Emplmjces. — Female employees performing 
substantially the same work as male employees shall be paid at 
the same rates of pay as male employees ; provided, that when male 
employees perform work customarily done by female employees, only 
during hours when female labor is prohibited by applicable law, it 
shall not be required that female emploj'ees doing such work at 
other times be paid at the same rates as such male employees. 

Section 9. Handicapped Persons. — A person whose earning capac- 
ity is limited because of age, physical or mental handicap, or other 
infirmity, may be employee! on light work at a wage below the mini- 
mum established by this Code, if the employer obtains from the 
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 au- 
thority 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 by him, showing the wages paid to, and the 
maximum hours of work for such employee. 

Section 10. Wages shall be exempt from fines and rebates and 
from charges and deductions, except charges and deductions for 
contributions voluntarily made by employees to pension, insurance 
or benefit funds, or charges and deductions required by mandatory 
provisions of law, or deductions for other purposes when provision 
therefor is made in a written contract between employer and em- 
ployee. All such contracts must be kept on file by each employer 
for at least six (6) months after the termination of the contract, 



252 

and such contract shall be op?n to the inspection of the Adminis-' 
trator or his agent. 

Section 11. Not less than time and one-third shall be paid for all 
time worked (except by persons employed in a managerial, execu- 
tive or technical capacity, as set forth in Section 2 of Article III, 
outside salesmen and v/atchmen) on Sundays and the following 
holidays : Christmas Day, Thanksgiving Day, Labor Day, July 
Fourth, New Year's Day, and such other holidays as may be pro- 
claimed by the President of the United States. 

Aeticle V — General Labor Provisions 

Section 1. Child Labor. — No person under sixteen (16) years of 
age shall be employed in the Industry. No person under eighteen 
(18) years of age shall be employed at operations or occupations 
which are hazardous in nature or detrimental to health. The Code 
Authority shall submit to the Administrator before July 1, 1934, 
a list of such operations or occupations. 

Section 2. Provhioiis from the Act. — In compliance with section 
Y (a) of the Act, it is provided: 

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

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

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

Section 3. Reclassl-ficatiGn of Employees. — Employers shall not 
change the method of payment of employees' compensation or re- 
classify employees or duties of occupations performed by employees, 
or engage in any other subterfuge, so as to defeat the purposes or 
provisions of the Act or of this Code. 

Section 4. Standards for Safety and Health. — Every employer 
shall provide for the safety and health of his employees at the place 
and during the hours of their employment. 

Section 5. State Lam)s. — No provisions in this Code shall super- 
sede any State or Federal Law which imposes more stringent re- 
quirements on employers as to age of employees, wages, hours of 
work ; or provision as to safety, health, sanitary, or general working 
conditions, or insurance, or fire protection than are imposed by this 
Code. 

Section 6. Posting. — All employers shall post and keep posted in 
conspicuous places accessible to employees complete copies of the 
Provisions oi this Code and all amendments thereto, dealing with 
hours, wages, and conditions of employment, and 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. 



253 

Section 7. Payment of Wages. — No employer shall make payment 
of wa<2;es due in any other medium than lawful currency or negoti- 
able check, payable on demand. All contracts of employment shall 
prescribe payment of wages at least every two weeks and shall pro- 
hibit withholding of wages except upon service of legal process or 
other papers law^fully requiring such withholding. 

Section 8. (a) In the event the maximum weekly working hours 
of any employee shall, under the provisions of this Code, be reduced 
by not more than sixteen and two-thirds (16%%) per cent under 
tlie average of the weekly working liours worked by said employee 
during the period from April 15, 1933, to May 15, 1933, the wages 
of said employee shall not be reduced below the average weekly 
wage paid said emploj^ee during said period from April 15, 1933, to 
May 15, 1933. 

(b) In the event the maximum weekly working hours of any 
employee shall, under the provisions of this Code, be reduced by 
more than sixteen and two-thirds (16%%) per cent under the 
average weekly working hours worked by said employee during the 
periocl from April 15, 1933, to ISIay 15, 1933, the houidy wage rate 
of said employee shall be equitably readjusted upward, provided that 
in each such case hourly wage rates shall be increased by at least 
twenty (20%) per cent. 

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

Article VI — Standards 

Section 1. Fruit preserves and fruit jams shall be understood to 
mean the clean, sound product possessing definite characteristic fla- 
vor of the preserved fruit named on the label, may by cooking to a 
pulpy or semisolid consistency properly prepared fresh fruit, cold- 
packed fruit, canned fruit, or a mixture of two or all of these with 
sugar or with sugar and water, with or without spice and/or vinegar 
or harmless organic acids other than acids or acid salts generally 
recognized as chemical preservatives, and in the preparation of which 
not less than forty-five (45) pounds of actual fruit are used to each 
fifty-five (55) pounds of sugar. In the case of fruits deficient in pec- 
tin, or whose composition or texture prevent the preparation of pre- 
serves or jam as defined herein of the desired consistency, pectin or 
pectinous material may be added ; provided, however, that when pec- 
tin or pectinous material is added as herein provided, the ratio of not 
less than forty-five (45) pounds of fruit to each fifty-five (55) 
pounds of sugar shall be maintained, and the finished product con- 
taining such added pectin shall contain not less than sixty-eight (68) 
per centum water-soluble solids derived from the fruit and sugar 
used in its manufacture, as determined by refractometer at twenty 
degrees (20°) centigrade without correction for the insoluble solids 
present. 

Section 2. Fruit jelly shall be understood to mean the clean, 
sound, semisolid, gelatinous product possessing definite characteris- 
tic flavor of the fruit named on the label, made by concentrating 
to a suitable consistency the strained juice, or the water extract, from 
fresh fruit, from cold-packed fruit, from canned fruit, or from a 
mixture of two or all of these, with sugar. In the case of fruits 
whose composition prevents the preparation of jelly of the proper 



254 

texture the necessary quantity of pectin or pectinous material and/or 
harmless organic acids other than acids or acid salts generally recog- 
nized as chemical preservatives may be added; provided, however, 
that such jelly containing said pectin or pectinous material or added 
acidulents shall contain not less than sixty-five (65) per centum 
water-soluble solids derived from the fruit and sugar used in its 
manufacture, as determined by refractometer at twenty degrees 
(20°) centigrade, and its composition shall correspond to not less 
than fifty (50) pounds of actual pure fruit juice, exclusive of added 
water, to each fifty (50) j)ounds of sugar in the original batch. 

Section 3. Apple butter shall be understood to mean the clean, 
sound product made by cooking with sugar or apple juice, or both, 
the properly prepared entire edible portion of apples, either fresh, 
cold-packed, canned, or evaporated, to a homogeneous semisolid con- 
sistency with or without vinegar, salt and spice, or harmless organic 
acids other than acids or acid salts generally recognized as chemical 
preservatives. Apple butter shall contain not less than forty-three 
(43) per centum water-soluble solids as determined by refractometer 
at twenty degrees (20°) centigrade without correction for the in- 
soluble solids present, and be prepared from not more than twenty 
(20) pounds of sugar to each fifty (50) pounds of fresh apples, or 
its equivalent in cold-packed, canned, or evaporated apples, exclu- 
sive of the cores and skins ; provided, however, that apple butter pre- 
pared with dried apples shall bear upon its principal label the state- 
ment, " Prepared with evaporated fruit " in plain and conspicuous 
type. 

Section 4. All food products made in simulation of preserve, 
jam, jelly, or apple butter and used or sold for the same purpose 
for which said products are used, but which fall below the standards 
and definitions therefor as defined in Sections 1 to 3 inclusive of 
this Article, except citrus fruit marmalades, fruit pie fillings, fruit 
sauce, mint and wine jellies, calves foot jellies labeled and sold as 
such, shall be understood to be imitation preserves, jams, jellies or 
apple butter, as the case may be; provided, however, that jams, pre- 
serves, jellies or apple butter in which honey or corn syrup has been 
substituted in whole or in part for sugar, shall not be deemed to be 
imitation jam, imitation preserve, imitation jelly or imitation apple 
butter, as the case may be, if the honey, corn syrup and/or sugar are 
stated on the label as part of the name of the product in the order 
of their predominance by weight in the product. 

Article VII — Unfair Methods of Competition 

Section 1. False or Deceptive Laheling, Advertising and Pach- 
aging. — No member of the Industry shall — 

(a) Sell a product falsely or deceptively labeled or marked; or 

(b) Falsely or deceptively advertise a product; or 

(c) Use a deceptive container for the purpose of deceiving pur- 
chasers as to the amount contained therein, or give short weight or 
short measure or short count. 

Section 2. Imitation Products. — No member of the Industry shall 
sell a product that is an imitation preserve, imitation jam, imitation 
jelly or imitation apple butter as defined in Article VI, Section 4, 
which is not conspicuously labeled " Imitation Preserve ", " Imita- 



255 

tion Jam ", " Imitation Jelly ", or " Imitation Apple Butter ", as the 
case may be; and if the names of the ingredients of which it is 
composed be not plainly stated on the label in close proximity to 
and direct conjunction with the name of the product in the order 
of their predominance by weight in the product. 

Section 3. SelUnf/ Below Cost. — No member of the Industry shall 
file with the Code Authority (as required in Section 4 of this Arti- 
cle), or sell at a price which is belovv' his individual cost, except to 
meet the hied price of any lower cost competitor in the same com- 
petitive market", provided such latter price is not in violation of this 
Code; and provided further that discontinued lines and/or inven- 
tories which must be converted into cash to meet emergency needs 
may be sold below cost if the person making such sale has first given 
the Code Authority notice by registered letter or telegram of such 
proposed sale below cost, together with a statement of the reasons 
therefor, and the amount, kind and condition of the product or 
products involved in such sale. Cost, for the purpose of this section, 
shall be determined by the uniform methocls of accounting, pro- 
vided for in Article VIII, Section G, Subsection (n). 

Section 4. Open prices. — (a) Each member of the Industry shall 
file with the Code Authorit,y at its office, within ten (10) days 
after the Code Authority shall have been constituted, a complete 
schedule of all of such members' prices for all products of the Indus- 
try that he sells, together with all discounts and full terms and condi- 
tions of sale of any kind based upon such prices. The Code Author- 
ity shall make such schedules available to all buyers as well as 
other members of the Industry and other interested parties, and 
in making them so available, shall make no interpretation or comment 
thereon. 

(b) Kevised schedules of prices, discounts, terms and conrVtions 
of sale, may be filed from time to time thereafter with the Code 
Authority by anj' member of the Industry. 

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

(d) All schedules must conform to the provisions of this Code, 
and all sales made by each member of the Industry shall be at 
the prices, discounts, full terms and conditions of sale, then on file 
as effective, except as provided in Section 3 of this Article by such 
member of the Industry with the Code Authority. 

(e) Every member of the Industry shall publish or make avail- 
able for the equal information of all buyers and members of the 
Industry located in the same competitive markets, his schedules 
of ]5rices, discounts and full terms and conditions of sale. 

(f) This Article shall not be construed to prevent any member 
of the Industry from making any price which may seem to him 
advisable in sales for charitable or relief purposes. 

Section 5. Pi^'we Concessions. — (a) No member of the Industry 
shall make any secret rebates, secret allowance or secret concessions 
of any kind, including rebates by way of special services, discounts, 
absorption of transportation costs or advertising allowances; and 

2 ScG paragraph 2 of order approving this Code. 



256 

any rebates, allowances, (except such allowances as are made in 
accordance with the provision-s of Section 6 of this Article) and 
concessions of any kind not set forth in the schedule of prices and 
discounts filed wdth the Code Authority. 

(b) Price Discrimination. — No member of the Industry shall dis- 
criminate in price between buyers. The term "discriminate in 
price "■ as used in this Section means directly or indirectly charging 
a different price to buyers in the same quantity and/or distribution 
class who are located in the same competitive market. 

(c) Diversion of Sales Com.pensafioiK — No member of the Indus- 
try shall offer to sell or sell any product of the Industry if the price 
thereof to the buyer is below the applicable price as stated in the 
effective schedules filed in accordance with the provisions of Section 4 
of this Article wliether such iovrer price to the buyer is effected 
through a diversion of compensation paid by the member of the 
Industry to an emplo3'ee or otherwise. 

Section 6. Advertising Allowances. — No member of the Industry 
shall pay a buyer for a special advertising or other distribution 
service by such buyer : 

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

(b) Unless such service is rendered and such })ayment 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 usecl to reduce a sales ])rice, and 

(d) Unless such payment is actually available to all buyers in the 
same competitive market, and 

(e) Unless a co})v of each said contract is retained on file for a 
period of one year. The Administrator and/or Code Authority shall 
be empowerecl to require a member of the Industry to rejiort each 
such contract made by him and/or produce a co})y thereof for 
inspection. 

Section 7. Qwintity Prices. — No member of the Industry shall 
offer or make a (luantity ])rice unless it is a genuine quantity price. 
The term " genuine quantity price '', as used in this Section, means a 
price differential which is based upon and reasonably measured by a 
substantial diflference in the quantity sold and delivered. 

Si'X'TiON 8. (Consignments. — No member of the Industry shall ship 
or deliver any goods to a buyer unless (a) there is a transfer of title 
at the time of delivery, and (b) unless a firm price is fixed in the 
invoice at the time of shipment. 

Section 9. Commercial Bribery. — No member of the Industry 
shall give, permit to be given, or ofFer to give, anything of value for 
the purpose of influencing or rewarding the actioji of any employee, 
agent or representative of another in relation to tlie l)usiness of the 
eujployer of such ('mi)l(tyee, the princijial of such agent or the repre- 
sented party, without tlio knowledge of such employer, ])rincipal or 
represei)t<'(j j)arty. 'I'his ])rovision shall not be coustrued to ])r()hibit 
free and genei'al distiibution of articles comuionly used for- adver- 
tising except so fai- as such articles ai'c actually used for commercial 
bribery as hereinbefore defined. 



257 

Section 10. C ompvlsory Purchases. — No member of the Industry 
shall compel a buyer to purchase one product in order to purchase 
or obtain another. 

Section 11. Fictitious Prices. — No member of the Industry shall 
(a) quote a fictitious price, or (b) make any price statement or 
representation which is designed and/or effective to mislead or 
deceive the purchaser or any other member of the Industry. 

Section 12, Cash Discounts. — No member of the Industry shall 
allov^^ a cash discount which is not duly earned by payment in ac- 
cordance with the terms of cash discount as provided for in the 
terms of sale. Such discount shall not exceed one (1%) per cent 
if paid within ten (10) days of the date of invoice. 

Section 13. Label AUoicance. — No member of the Industry shall 
make any label allowance on a product of the Industry packed 
for private label unless the allowance is set forth in the membei's' 
open price schedule filed in accordance with Section 4 of this Article, 
or imprint private labels without charging actual cost of the 
imprinting. 

Section 14. Guovantec of Floor Stocks. — No member of the Indus- 
try shall guarantee floor stocks of customers against declines in 
price made either by the seller or by another member of th^e Industi-y. 

Article VIII — Administration 

Section 1. Organisat/on and Constitution. — There is hereby es- 
tablished a Code Authority, for the purpose of administering, super- 
vising, and promoting the performance of the provisions of this 
Code, consisting of nine (9) members to be selected in the following 
manner : 

(a) Seven (7) members to be elected by the members of the Na- 
tional Preservers Association at an election to be called by said 
Association. 

(b) Two (2) members to represent those members of the Industry 
who are not members of the Association, to be appointed by the 
Administrator. 

(c) Any vacancies occurring in the membership of the Code Au- 
thority shall be filled by election or api^ointment as provided for 
herein. 

(d) The members provided for in Subsections (a) and (b) of this 
Section shall hold office for one year or until their respective suc- 
cessors are elected or appointed. 

(e) In addition to membership as above provided, there may be 
from one (1) to three (3) members without vote to be appointed by 
the Administrator to serve for su.ch time as he may designate. The 
representatives who may be appointed by the Administrator, together 
with the Administrator, shall be given notice of and shall be per- 
mitted to sit at all meetings of the Ct)de Authority. 

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, 



258 

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

Section 3. In order that the Code Authority shall at all times be 
truly representative of the Industry and in other respects comply 
with the provisions of the Act, the Administrator may prescribe 
such hearings as he may deem proper; and thereafter if he shall find 
that the Code Authority is not truly representative or does not in 
other respects comply with the provisions of the Act, may require 
an appropriate modification of the Code Authorit3^ 

Section 4, Members of the Industry shall be entitled to partici- 
pate in and share the benefits of the activities of the Code Authority 
and to participate in the selection of the members thereof by assent- 
ing to and complying with the requirements of this Code and sus- 
taining their reasonable share of the expenses of its administration. 
Such reasonable share of the expenses of administration shall be 
determined by the Code Authority, subject to review by the Admin- 
istrator, on the basis of volume of business and/or such other factors 
as may be deemed equitable. 

Section 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 Author- 
ity, exercising reasonable diligence in the conduct of his duties 
hereunder, be liable to anyone for any action or omission to act 
under this Code, except for his own wilful misfeasance or non- 
feasance. 

Section 6. Powers and Duties. — Subject to such rules and regu- 
lations 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 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 by-laws and rules and i-egulations for its procedure 
and for the administration of tlie Code. 

(c) To oljtain from membei's of tlie Industry such information 
and i-eports as are i'<'((uired for the athninistration of the Code. In 
addition to information required Xu be submitted to the Code Au- 
thority, members of the Industry subject to this Code shall furnish 
such statistical infoi-mation as the Administrator nuiy deem neces- 
sary for the pur]K)ses recited in Secti(jn 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 re))oi'ts to any (jrovernment 
agency. No indi\i(hial r<'port shall he disclosed to any othei- mem- 
bei- of the In(histry or any other party except to such other Govern- 
mental agencies as may be directed by the Administrator. 

(d) To use such trade associations and other agencies as it tleems 
proper, or connnittees of its own nu'mbership for the carrying out 
of any of its activities provided for herein, provided that nothing 
herein shall relieve the Code Autiiority of its duties or responsibil- 
ities undei- this Code and that such trade associations and agencies 



259 

shcall at all times be subject to and comply with the provisions 
hereof. 

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

(f) 1. It being found necessary, in order to support the admin- 
istration of this Code and to maintain the standards of fair com- 
petition established by this Code and to effectuate the policy of the 
Act, the Code Authority is authorized, subject to the approval of tho 
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 neces- 
sary (1) an itemized budget of its estimated expenses for tho 
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 equi- 
table contribution as above set forth by all such members of the 
Industry, and to that end, if necessary, to institute legal pro- 
ceedings 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 Autjiority 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 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 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 elect a representative to serve on any conference or advi- 
sory committee which may be established by the Administrator for 
the entire Grocery and Food Manufacturing Industry; and to con- 
sider recommendations formulated by such committee for the modi- 
fication of this Code. 

(j) To appoint a Trade Practice Committee which shall meet 
with the Trade Practice Committees appointed under such other 
codes as may be related to the Industry for the purpose of formu- 
lating fair trade practices to govern the relationships between 
employers under this Code and under such other codes to the end 
that such fair trade practices may be proposed to the Administrator 
as amendments to this Code and such other codes. 



260 

(k) To investigate, upon complaint of any interested party, (if 
in the opinion of the Code Authority the complaint warrants such 
action) and subject to such rules and regulations as the Adminis- 
trator may establish, any alleged specific violation or violations of 
any provision or provisions of this Code and, if it deems advisable, 
to require a report based upon records of transactions in the Indus- 
try kept in accordance with the requirements of any of the provi- 
sions of this Code, in such form as the Code Authority shall pre- 
scribe, from any member or members of the Industry against which 
such com]Dlaint*shall have been made, setting forth the facts pertain- 
ing to the alleged violation or violations. 

(1) In the event any member or members of the Industry shall 
fail to file a report or reports when requested by the Code Authority 
so to do, in accordance with the preceding paragraph, or in the 
event the Code Authority shall be of the opinion that any such 
report or reports when filed would not truly reflect the facts, or, 
in the case of any such report, that the details requested by the 
Code Authority shall not have been furnished, the Administrator, 
upon the request of the Code Authority, during reasonable business 
hours, nu\y cause any of such books and records required to be 
kept, in accordance with the requirements of any of the provisions 
of this Code, to be examined by disinterested certified public ac- 
countants or other accountants having equal qualifications, in order 
to determine whether the alleged violation has occurred. After mak- 
ing such examination, said accountants shall make a report of their 
findings to the Administrator, who shall take such action as he deems 
advisable. 

(m) If, after examining any re])orts filed in accordance with 
either of the preceding two paragrajihs, and after making any 
otlier investigations, and after such hearings as it shall deem advis- 
able, the Code Authority shall determine that any violation of this 
Code has been conunitted. it shall, at its option, (1) notify the mem- 
ber or members of the Industry so violating the Code and request 
that such violation be discontinued, and if the party continues in 
such violation, the Code Authority shall then notify the Adminis- 
trator; or (2) report its findings of fact and recommendations to 
the Administrator, who may take such action under aj^plicable law 
as he deems necessary. 

(n) To formtdate, within thirty (HO) days after the effective date 
of this Code, subject to the approval of the Administrator, an ac- 
counting 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 sliall determine and/or estimate 
costs in accordance with the ]ii-incij)Ies of sucli methods. 

(o) The Code Authority sliall create a Committee on safety and 
health which will study and recoiiiinend to the Administi-atoi' within 
six (G) months after the efl'ective (hite of this Code, standards for 
safety and health of (■mi)loyees of tlie Industry. 

(p) Tlie Code Authority shall, within sixty (60) days aft^'r its 
institution, submit to the Administrator for approval minimum spec- 
ifications for quality and conditions of fruits (including nu>ld and 
yeast counts) used in the manufacture of products of the Industry, 



261 

and such minimum specifications, when approved by tlie Adminis- 
trator after such Notice and Hearing as he may prescribe, shall 
become a part of this Code with the same force and effect as if 
originally included. After such approval of such minimum speci- 
fications of condition and quality (including mold and yeast counts), 
and on a date to be fixed in the Order of Approval of the same, the 
use of fruits below such uiinimum si>ecifications in the manufacture 
of the products of the Industry, shall be deemed an act of unfair 
competition and shall be prohibited. 

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

Section 8. There shall be established an Industrial Relations 
Committee for the Industry, which shall consist of an equal number 
of representatives of employers and employees and an impartial 
chairman. The Administrator shall appoint such impartial chair- 
man upon the failure of the committee to select one by agreement. 
If no truly representative labor organization exists, the employee 
members of .such board nuiy be nominated by the Labor Advisory 
Board of the N.R.A. and appointed by the Administrator. The 
enqiloyer representatives shall be chosen by the Code Authority. 
Such committee shall deal with conq^laints and disputes relating 
to labor in accordance with rules and regulations issued by the 
Administrator. The Industrial Relations Committee may establish 
such divisional, regional, and local industrial adjustment agencies 
as it may deem desirable, each of which shall be constituted in like 
manner as the Industrial Relations Committee. 

Article IX — Modifications 

Section 1. This Code and all the provisions thereof are expressly 
made subject to the right of the President, in accordance with tlie 
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, and specifically, but without limitation, to the right 
of the President to cancel or modify his approval of the Code or 
any conditions imposed by him upon his approval thereof. 

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

Article X — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made more difficult of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price 



262 

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. 

Articij) XI — 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 XII — Eni-ECTivE Time 

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

Aiiproved Code No. 460. 
Registry No. 107-07. 

o 



Approved Code No. 461 

CODE OF FAIR COMPETITION 

FOR THE 

VEGETABLE IVORY BUTTON MANUFACTURING 
INDUSTRY 

As Approved on June 9, 1934 



ORDER 



Code of Fair Competition for the Vegetable Ivory Button 
Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance Avith the provisions of Title I of the National Indus- 
trial Recovery Act, approved June 16. 1933, for ai)proval of a Code 
of Fair Competition for the Vegetable Ivoiy Button 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. Jolmson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 
President, including Executive Order No. 6543-A, dated Decem- 
ber 30, 1933, and otherwise; do hereby incorporate by reference said 
annexed report and do find that said Code complies in all respects 
with the 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 Fair Competition be and it is hereby approved. 

Hugh S. Johnson, 
Admi7iistrator for Indu'Strlal Recovery. 

Approval recommended : 
Sol a. Rosenblatt, 

Division A dimnistrator. 

Washington, D.C, 

June 9, W34. 

6Go37° G57-79 34 42G3) 



KEPORT TO THE PRESIDENT 

The President, 

The White House. 

Sir: The Public Hearing on the Code of Fair Competition for 
the Vegetable Ivory Button Manufacturing Industr}^ as proposed 
by the Vegetable Ivory Button Manufacturers Association, was 
conducted in the Maj^fiower Hotel, Washington, D.C., on October 
12, 1933. 

Every person who requested an appearance was fairly heard in 
ficcordance with the regulations of the National Recovery Adminis- 
tration. The Code has the approval of the Industrial, Consumers' 
and Labor Advisory Boards of the National Recovery Administra- 
tion, and of the Legal Division. The Chairman of the Code Com- 
mittee, upon the authorization of the Committee, has also given his 
approval to the final draft of the Code on behalf of the Industry. 

The Industry as defined in the Code, includes the manufacture of 
blanks and/or finished buttons made from Tagua or Dom nuts. 
In 1932 the total volume of business of the Industry was $2,000,- 
000.00, which was a drop of $500,000.00 from 1931. In 1929 the 
-volume was $4,050,212.00. Althouglr the volume of business has de- 
creased by more than fifty per cent, the number of employees in 
1933 was IS'OO, approximately the same as in 1929. 

The submitting Association represents approximately eighty per 
cent of the Industry both by volume of business and by number of 
concerns. 

It was attempted first to combine the various button codes into 
one code for the entire Industry, but this was found to be im- 
practicable at the present time. However, a provision has been 
incorporated in this Code, as in the others, v/hich may open the way 
for a cooperative administration of all codes. 

RESUME OF THE CODE 

Article I gives the purpose of the Code. 

Article II sets forth certain definitions. 

Article III contains the maximum hour provisions of the Code. 

Article IV establislies the minimum wage for employees in tlie 
Industry. 

Article V sets forth general lal)or provisions. 

Article VI provides for tlie organization and constitution of the 
Code Authority and defines its powers and duties. 

Article VII regulates certain of the practices. 

Article VIII i)rovides for the modification of the Code. 

Article ]X states that this Code shall not permit monopolies. 

Article X is on price increases. 

Article XI specifies the effective date. 

(20-1) 



265 



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 bv promoting the organization of indus- 
try for the purpose of cooperative action among the trade groups, 
by inducing and maintaining imited action of labor and manage- 
ment under adecjuate governmental sanctions and supervision, by 
eliminating unfair competitive practice, by promoting the fullest 
possible utilization of the present productive capacity of industries, 
by avoiding undue restriction of production (except as may be tem- 
porarily required), bv 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 
employees; and is not classified by me as a major industry. 

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

Ad7mnistrator. 
June 9, 1934. 



CODE OF FAIR COMPETITION FOR THE VEGETABLE 
IVORY BUTTON INDUSTRY 

Article I — Purposes 

To effectuate the policies of Title I of the National Industrial 
Recovery Act, the following provisions are established as a Code of 
Fair Competition for the Vegetable Ivory Button 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 includes the manufacture 
of blanks and/or finished buttons made from Tagua or Dom nuts, 
and such related products as may from time to time be included 
under the provisions of this Code" by the Administrator, after such 
notice and hearing as he may prescribe. 

2. The term " employee " as used herein includes any person en- 
gaged in any phase of the Industry in any capacity, irrespective of 
the method of compensation or his interest otherwise in said Industry. 

3. The term " employer " as used herein includes anyone for whose 
benefit such employee is so engaged. 

4. The term " member of the Industry " includes any individual, 
partnership, association, corporation or other person engaged in the 
Industry, either as an employer or on his or its own behalf. 

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

Article III — Hours 

1. Except as hereinafter provided, no employee shall be permitted 
to work in excess of forty (40) hours in any one week, nor more than 
eight (8) hours in any twenty-four (24) hour period. 

2. Members of shop repair crews, engineers, electricians, firemen, 
watchmen, delivery men, stocl;: and ship])ing clerks shall not be per- 
mitted to work in excess of forty-four (44) hours in any one week. 

3. The provisions of this Article shall not apply to persons em- 
ployed in supervisory capacities provided such persons earn not less 
than thirty ($30.00) "dollars per week. 

4. No member of the industry shall knowingly engage any em- 
ployee foi- any time which, wlien "totaled with that already performed 
with another member or members of the industry, exceeds the maxi- 
mum permitted herein. 

(2GU) 



267 

5, The provisions of this Article shall not apply to outside sales- 
men. Employees while engaged in emergency maintenance or emer- 
gency repair work may be employed on an average of forty-four (44) 
hours per week over periods of six (6) months each. 

Article IV — Wages 

1. Except as hereinafter provided, no employee shall be paid at 
less than the rate of thirteen ($13.00) dollars per forty (40) hour 
week, 

(a) No employee as defined in Article III, Section 2, shall be paid 
at less than the rate of thirteen ($18.00) dollars per forty-four (44) 
hour week. 

(b) The Code Authority with the approval of the Administrator 
shall fix the minimum piece work rate which shall be paid persons 
for the carding of buttons in homes. 

2. No apprentice shall be paid at less than the rate of 70% of 
minimum wage per week of forty (40) hours for the first twelve (12) 
weeks of employment and thereafter not less than the ininimum 
wages in Section One (1) of this Article. The period of apprentice- 
ship shall be strictly limited to twelve (12) weeks and the number 
employed at any time shall not exceed ten (10%) per cent of the 
total number of employees. Any time worked by an apprentice 
shall be deemed a part of such apprenticeship period, whether such 
time is worked continuously, or in more than one shop, or for more 
than one employer. An affidavit sworn to and furnished by an 
employee as to the total number of hours he has worked as an ap- 
prentice in the industry shall be deemed sufficient evidence of the 
status of such employee. The number of apprentices to be employed 
as mentioned in this Article is subject to review by the Code 
Authority with the right to increase the number if good cause be 
shown. 

3. A person whose earning capacity is limited because of age or 
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 emj^ioyer obtains from the State Authority designated 
by the United States DeiDartment of Labor, a certihcate authorizing 
such person's employment at such wages and for such hours as shall 
be stated in the certificate. Such authority shall be guided by the 
instructions of the United States Department of Labor in issuing 
certificates to such persons. Each employer shall file monthly with 
the Code Authority a list of all such persons employed by him, 
showing the wages paid to, and the maximum hours of work for 
such employee. 

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

5. Equitable adjustments in pay schedules of all employees shall 
be made within thirty (30) days after the effective date of this Code 
by any employer who has not heretofore made such adjustments 
under the National Industrial Recovery Act. Within sixty (CO) 
days after the effective date all such adjustments made under the 



268 

Act shall be reported to the Code Authority and the Administrator. 
In no case shall rates be reduced. 

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

Article V — General Labor Provisions 

1. No person under sixteen (16) years of age shall be employed 
in the Industiy. No person under eighteen (18) 3^ears of age shall 
be employed at operations or occupations, if any, which are hazard- 
ous in nature or detrimental to health. The Code Authority shall 
submit to the Administrator within ninety (90) days of the effective 
date of this Code a list of such operations or occupations. 

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

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

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

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

(). No ])rovision of this Code shall supersede any lav/ within any 
state which imposes more stringent requirements on employers as to 
age of employees, wages, hours of work, or as to safety, health or 
sanitary regulations or insurance, or fire protection, or general work- 
ing conditions than are imposed by this Code. 

7. Each member of the industry shall be furnished by the Code 
Authority, with official copies of the provisions of this Code relating 
to l)oiirs'of lal)or, rates of pay, and other conditions of employment. 
Such official copies of such provisions shall contain directions for 
filing (■()U)j)laint.s of violations of such provisions, and shall be kept 
conspicuously post<;d at all times by such members of the industry 
in each shop, establishment, or .separate unit, to the extent necessary 
to make them freely accessible to all employees. Whenever any 
modifications of, or exemption or exception from this Code permits 
any person to pay lower wages, or work his employees longer hours, 
or'establish traditions of employment less favorable to his employees 
than tliosi! {)rescribed by the provisions contained in such official 
cojjy (d" tlu; provisi(ms of this Code, the Code Authority, on the 
rcqiiest of such person, shall furnish him with certified copies of 
such moflifications, exemption or exception in sufficient number for 
])osting along side of such official copies of Code Provisions. No 
member of the iiulustry shall display or furnish any incorrect 
copies of such provisions, directions, modifications, exemptions or 
exceptions. 



269 

8. The Code Authority in conjunction with the Administrator 
and such other agents or agencies as he may designate, shall study 
the problem of home work in this industry and propose to the 
Administrator within a reasonable time after the effective date of 
this Code appropriate provisions for the regulation and control of 
such home work. 

9. Every employer shall provide for the safety and health of his 
employees during the hours and at the places of their employment. 
Standard for safety and health shall be submitted by the Code 
Authority to the Administrator within six months after the effective 
date of the Code. 

Ap/ncLE VI — Administration 

To further effectuate the purpose of the Act, a Code Authority 
is set up to cooperate with the Administrator in the administration 
of this Code. 

1. Organization and Constitution of the Code Authority. 

(a) Tlie Code Authority shall consist of five (5) members, who 
shall be appointed by the Vegetable Ivory Button Manufacturers 
Association. In addition thereto, the Administrator may appoint 
not more than three (3) members who shall be without vote and who 
shall serve without expense to the Industry and together with the 
Administrator shall be given notice of and may sit at all meetings 
of the Code Authority. 

(b) Each trade or industrial association directly or indirectly 
participating in the selection or activities of the Code Authority 
shall (1) impose no inequitable restrictions on the 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 ma}?^ deem necessary 
to effectuate the purposes of the Act. 

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

(d) Members of the industry shall be entitled to participate in 
and share the benefits of the activities of the Code Authority by 
assenting to and complying with the requirements of this Code and 
sustaining their reasonable share of the expenses of its adminis- 
tration. Such reasonable share of the expenses of administration 
shall be determined by the Code Authority, subject to review by the 
Administrator, on the basis of volume of business and/or such "other 
factors as may be deemed equitable. 

(e) Nothing contained in tliis 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, officers, agent or employee of the 



270 

Code Authority. Nor shall any member of the Code Authority, 
exercising reasonable diligence in the conduct of his duties here- 
under, be liable to any one for any action or omission to act under 
the Code, except for his own willful malfeasance or non-feasance. 
2. The Code Authority shall have the following powers and duties 
in addition to those elsewhere provided in this Code, subject to the 
right of the Administrator, on review, to disapprove any action 
taken by the Code Authority : 

(a) To adopt by-laws and rules and regulations for its procedure 
and for the administration and enforcement of the Code, in accord- 
ance with the powers herein granted, and to submit same to the 
Administrator for his approval together with true copies of any 
amendments or additions when made thereto, minutes of meetings 
when held, and such other information as to its activities as the 
Administrator may deem necessary to effect the purposes of the 
Act. 

(b) To obtain from members of the Industry for use of the Code 
Authority and of the Administrator in the administration and en- 
forcement of the Code, and for the information of the President, 
reports based on periods of two or four weeks, or multiples thereof, 
as soon as the necessary readjustment within the Industry can be 
made, and to give assistance to members of the Industry in im- 
proving methods, and otherwise. All individual reports shall be 
kept confidential as to members of the Industry and only general 
summaries thereof may be published. 

(c) To 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 provisions of this Code or 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 and to pay such trade associations and agencies the cost 
thereof, provided that nothing herein shall relieve the Code Au- 
thority of its duties or responsibilities under this Code and that such 
trade associations and agencies shall at all times be subject to and 
comi)ly with the provisions hereof. 

(c) 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. 

(f) It being found necessary, in order to support the adminis- 
tration of this Cmle and to maintain the standards of fair com- 
petition established by this Code and to effectuate the policy of the 
Act, tlie (>)(le Autliority is authorized subject to the approval of the 
Administrator : 

1. To incur such reasonable obligations as are necessary and 
proper for the foregoing purposes and to meet such obligatiojis out 
of funds wliich may be i-aised as hereinafter provided and which 
sliall Ik; held in trust for the pur])oses of the Code; 

2. To submit to the Administrator for liis a))proval, subject to 
such notice and o))})ortunity to be heard as he may deem necessary, 
(1) an itemized budget of its estimated expenses ifor the foregoing 



271 

purposes, and (2) 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 approved 
by the Administrator, to determine and secure equitable contribution 
as above set forth by all such members of the Industry, and to tliat 
end, if necessary, to institute legal proceedings therefor in its own 
name. 

(g) To reconuuend 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 be binding on all members of the Industry when 
approved by the Administrator after such notice and hearing as he 
may specify. 

(h) To formulate and submit to the Administrator for his ap- 
proval an accounting system and methods of cost find and/or esti- 
mating adaptable for use by all members of the industry. After 
such system and methods have been formulated and approved by the 
Administrator, full details concerniiig them shall be made available 
to all members. Thereafter all members shall determine and/or 
estimate costs in accordance with the principles of such methods. 

(i) To investiga^ and recommend a uniform system, or standard 
method of classifying blanks and grading finished buttons by the 
members of the industry, which upon approval by the Administra- 
tor and after such notice of hearing, as he shall prescribe, shall 
become a part of this Code. 

(j) To recommend to the Administrator appropriate provisions 
for the regulation of the disposal of distress merchandise. 

(k) To investigate competitive articles imported in the United 
States on such terms and under such conditions as to render ineffec- 
tive or seriously endanger the maintainance of this Code and to act 
as the agency for making complaints to tlie proper governmental 
agencies on behalf of the Industry. 
' (1) To coordinate the administration of this Code with such other 
codes as nuiy be related to the Industry, the Code Authority may 
designate representatives for the purpose of meeting with like rep- 
resentatives designated by the Code Authorities of the related Codes 
referred to above. Such representatives shall be duly authorized to 
constitute a committ<?e which committee shall, as soon as practicable, 
submit to the Administrator such reports and recommendations with 
respect to : 

(1) The establishment and method of selection of a General But- 
ton Manufacturers Coordinating Council. 

(2) The jurisdiction, as well as the administrative powers and 
authority to be dekgated to such Coordinating Council. 

Upon approval of the Administrator of such recommendations of 
the Council, selected in the manner above provided for, after such 
hearinps and notice as he may prescribe, the Code Authority shall 
be subject to the jurisdiction, rules, regulations, and by-laws of the 
General Button Manufacturers Coordinating Council in the form 
and manner approved by the Administrator, any express or implied 



272 

delegation of power or duty in this Code to the Code Authority 
notwithstanding. 

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

(4) In addition to the information required to be submitted to 
the Code Authority as set forth in this Article there shall be fur- 
nished to government agencies such statistical information as the 
Administrator may deem necessary for the purposes recited in 
Section 3(a) of the National Industrial Recovery Act. Nothing 
in this Code shall relieve any member of the Industry of any exist- 
ing obligations to furnish reports to any government agency. 

Article VII — Trade Practices 

1. No member of the Industry shall use selling methods or credit 
terms which tend to deceive or mislead the customers or prospective 
customer. *"* 

2. No member of the Industry shall brand or mark any commodity 
in any manner which tends to mislead or deceive purchasers with 
respect to the grade, quality, quantity, origin, size, material, content, 
or preparation of such commodity in conformity with the standards 
as established by the Code Authoritj^ wdien approved by the 
Administrator. 

3. No member of the Industry shall use advertising or other 
representation w^hich refers inaccurately in any material particular 
to any competitors or their commodities, prices, values, credit terms, 
policies or services. 

4. No member of the Industry shall publisli or circularize un- 
justified or unvN'arranted threats of legal proceedings which tend to 
or have the effect of harassing competitors or intimidating any of 
their customers. 

5. No member of the Industry shall secretly offer or make any 
payments or allowances 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 sliall a mem- 
ber extend to any customer any special service or i:)rivilegc not 
extended to all customers of the same class. 

6. No member of the Industry shall give, permit to be given, or 
directly offer to give anything of value for the purpose of influenc- 
ing or rewarding (he action of any em.ployee, agent, or re]iresenta- 
tive of another in relation to the business of the employer of such 
einplo3'ee, the principal of such agent or the represented party, 
without the knowledge of such employer, princi{)al or party. Com- 
mercial bribery y)rovisions are not to be construed to ])rohibit free 
and general distribution of articles commonly used for advertis- 



273 

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

7. No member of the Industry shall secretly give anything of 
value to the employee or agent of a customer for the purpose of 
influencing a sale, or in furtherance of a sale render a bill or state- 
ment of account to such employee, agent or customers which is 
inaccurate in any material particular. 

8„ No member of the Industry shall attempt to induce the breach 
of an existing contract between a competitor and his customer, or 
source of supplies; nor shall any such member interfere with or 
object to the performance of such contractual duties or services. 

9. No member of the Industry shall use any unfair means to 
secure information regarding the manner in wliich a competitor 
conducts his business. 

10. No member of the Industry shall ship goods on consignment 
except under circumstances authorized by the Code Authority and 
approved by the Administrator. 

11. No member of the Industry shall grant any cash discount in 
excess of net ten days E.O.M., etfective from date of invoice or 
shipment, whichever date is the earlier; no extra dating to be al- 
lowed. Goods shipped on or after the 25th of the month may be 
billed as of the first of the following month. Interest shall be 
charged at the rate of six percent (G%) on all past due accounts, 
such charge starting ten (10) days after maturity. Discounts al- 
lowed for anticipated payment of invoice shall be at the rate of not 
more than six per cent (C%) per annum. 

12. All sample requirements in excess of one half gross in bulk in 
any one number and all sample cards furnished for the use of cus- 
tomers' salesmen shall be charged and paid for by the customer at 
the sales price of the finished button, plus all carding and other costs 
entailed. 

13. No member of the industry shall sell any articles subject to 
the provisions of this Code below his individual cost. However, 
any member of the Industry may meet the price of any competing 
member of the Industry whose cost under this provision is lower. 
Cost for the purpose of this provision shall be determined in accord- 
ance with Section 2 (h) of Article VI of this Code, Distress mer- 
chandise, however, maj be sold below cost as herein defined. 

14. Swatcli Matching Service maj^ be furnished when requested 
and charged at not less than the actual cost of service rendered. 

15. No member of the Industry shall imitate, permit, or cause to 
be imitated trade marks, trade names, slogans, or other marks of 
identification of competitiors, having the tendency and capacity to 
mislead or deceive purchasers or prospective purchasers as to the 
source of origin of any product. 

16. No arrangement shall be made for the return of unused goods. 
No goods shall be redyed at less than actual cost o-f such dyeing. 
No merchandise shipped and billed shall be returned after 30 days 
from date of shipment. 

17. Upon approval of a plan of registration by the Code 
Authority, all manufacturers shall register with a confidential agency 
of the Code Authority all active patterns and special patterns which 
have been manufactured by them during the past twelve months. 



274 

These registrations will constitute their line. All members of the 
industry shall register with the confidential agency of the Code 
Authority all special confined patterns they manufacture, together 
with the names of the customers to whom confined. No member of 
the Industry fc:hall make customer's confined specials for any other 
customer than the originator. 

18. All new additions to manufacturers' line creations shall be 
approved by the confidential agency of the Code Authority for 
design infringement, and if there is a question as to its being a copy, 
same shall be settled by arbitration. Manufacturers' line creations 
when approved as hereinabove specified shall not be copied or in- 
fringed upon where the effect or tendency is to deceive or mislead 
customers or prospective customers as to the source of origin. 

19. No member of the Industry shall guarantee or agree to protect 
any customer against reductions in the seller's price made subsequent 
to tlie date of shipment for such buyer either by method or rebate 
or allowance. 

Article VIII — Modification 

1. This Code and all the provisions thereof are expressly made 
subject to the right of the President, in accordance with the pro- 
visions of subsection (b) of Section 10 of the National Industrial 
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 Umitation, 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 Admi:.. ,iiator 
and such notice and hearing as he shall specify, and to become 
effective upon approval by the President. 

Article IX — Monopolies 

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

Article X — Price Increases 

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

Article XI — Efi^ectivb Date 

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

Approved Code No. 461. 
Registry No. 1G12— 1-03. 

o 



Approved Code No. 462 
CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE TOBACCO TRADE 

As Approved on June 9, 1934 



ORDER 



Code of Fair Competition for the Wholesale Tobacco Trade 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of a Code of 
Fair Competition for the Wholesale Tobacco Trade, and hearings 
having been duly held thereon and the annexed report on said Code, 
containing findings with respect thereto, having been made and 
directed to the President : 

NOAV, THEREFORE, on behalf of the President of the United 
States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 
pursuant to authority vested in me by Executive Orders of the 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 the said Code of 
Fair Competition be and it is hereby approved, and shall become 
effective on the date of this Order ; subject, however, to the following 
conditions : 

(1) That the provisions of Part I of Article VI and of Schedule 
I — the Cigar Merchandising Plan — be stayed and shall not become 
effective until said plan shall have become effective pursuant to codes 
of fair competition for the Cigar Manufacturing Industry and the 
Retail Tobacco Trade. 

(2) That the waiting periods of five and three days contained in 
Schedule I, Part A, Section 1, and in Article VI, Part I, Sections 
1 and 2, and Schedule I, Part B, Sections 1 and 2, respectively, be 
stayed and shall not become effective, notwithstanding said cigar 
merchandising plan becoming effective, until my further order. 

(3) That all provisions for the filing of prices and discounts in 
said cigar merchandising plan be stayed until arrangements satis- 
factory to the Administrator, are made for confidential treatment 
and for simultaneous distribution thereof to all members of the 
trade and customers willing to pay the cost thereof. 

66673° 667-101 34 (275) 



276 

(4) That the preamble and Sections 1, 2, and 3, of Part II of 
Article VI be stayed and that the trade accept in place thereof, the 
following: 

"As to cigars, with respect to which the provisions of Part I or 
Schedule I shall not at the time be operative or shall be stayed, and 
as to cigarettes, smoking tobacco, chewing tobacco and snuff, the 
standards of fair competition fop^the trade with reference to pricing 
practices are declared to be as follows : 

" Section 1 (a) : Wilfully destructive price cutting is an unfair 
method of competition and is forbidden. Any member of the trade 
or of any other trade or industry or the customers of either may, at 
any time, complain to the Code Authority that any actual price con- 
stitutes unfair competition as destructive price cutting, imperilling 
small enterprises or tending toward monopoly or the impairment or 
code wages or working conditions. The Code Authority shall, 
within five days, afford an opportunity to the member making such 
price to answer such complaint and shall, within fourteen days, make 
a ruling or adjustment thereon. If such ruling is not concurred in 
by either party to the complaint, all papers shall be referred to the 
Research and Planning Division of NRA which shall render a 
report and recommendation thereon to the Administrator. 

"(6) : "N^Tien no declared emergency exists as to such products or 
any specified part thereof, there is to be no fixed minimum basis for 
prices. 

" It is intended that sound cost estimating methods should be 
used and that consideration should be given to costs (including 
costs of wholesale distribution) in the determination of pricing 
policies. 

" ((?) When an emergency, by reason of unfair competitive prac- 
tices or other conditions, exists in the trade as to such products or 
any specified part thereof, sale below the stated minimum price of 
such products or such specified part thereof, in violation of Section 2 
hereof, is forbidden. 

"Section 2. Evxergency Provisions. — {a): If the Administrator, 
after investigation, shall at any time find both (1) that an emergency 
has arisen within the trade, adversely affecting small enterprises or 
wages or labor conditions, or tending toward monopoly or other 
acute conditions which tend to defeat the purposes of the Act; and 
(2) that the finding of a basis for determining minimum prices for 
such products or any specified part thereof is necessary for a limited 
period, to correct the conditions constituting such emergency and 
to effectuate the purposes of the Act, the Code Authority may cause 
an impartial agency to investigate costs (including the costs of 
wholesale distribution) and to recommend to the Administrator a 
basis for determining minimum prices of the said products or the 
said specified pai-t thereof affected by the emergency, and thereupon 
the Administrator may proceed to fix a basis for determining such, 
minimum prices. 

"(t) : When the Administrator shall have fixed a basis for deter- 
minmg minimum prices for the said products or said specified part 
thereof for a stated period^ which prices shall be reasonably cal- 
culated to correct the conditions of such emergency and to effectuate 
the purposes of the Act, he shall publish the said basis. Thereafter, 



277 

during such stated period, no member of the trade shall sell such 
products at a net realized price below the minimum price determined 
upon the basis so fixed, and any such sale shall be deemed destruc- 
tive price cutting. From time to time, the Code Authority may 
recommend review or reconsideration or the Administrator may cause 
any determination hereunder to be reviewed or reconsidered, and 
appropriate action taken." 

(5) That the provisions of Articles III and IV shall be and the 
same hereby are stayed until and shall become effective on Monday, 
June 25, 1934. 

Hugh S. Johnson. 
AjDproval recommended : 
Armin W. Riley, 

Division Adtninistrator. 

Washington, D.C, 

June 9, 193Jf. 



REPOET TO THE PRESIDENT 

The President, 

The White Emme. 

Sir: A Public Hearing on the Code of Fair Competition for the 
Wholesale and Retail Tobacco Distributi-ng Industry, submitted by 
the National Association of Tobacco Distributors, Inc., and the Re- 
tail Tobacco Dealers of America, Inc., was held in Washington, D. C. 
on December 15 and 16, 1933, in accordance with the provisions or 
the National Industrial Recovery Act, pursuant to Notice of Hearing 
signed by the Secretary of Agriculture by virtue of Executive Order 
of June 26, 1933. Under Executive Order of January 8, 1934, juris- 
diction over this Code was transferred to the Administrator for 
Industrial Recovery, whose representatives have made certain re- 
visions in the Code, as is customary after Public Hearing. These 
changes are not in conflict with the testimony in the record of the 
Public Hearing and have been assented to by the Industry. 

The most important change was the division of the Code into two 
codes, namely, this Code and the Code of Fair Competition for the 
Retail Tobacco Trade. This step was deemed advisable, inasmuch 
as the two trades each with its different problems, should be able 
to operate more satisfactorily under separate Codes and different 
Code Authorities. 

ECONOMIC EFFECTS OF THE CODE 

The Wliolesale Tobacco Trade covers the wholesale distribution 
of cigars, cigarettes, smoking tobacco, chewing tobacco, snuff, and 
other tobacco products. 

According to the 1929 Census of Distribution there were approxi- 
mately 2,000 establishments in the United States engaged in the 
distribution of tobacco products. There were about 20,000 em- 
jDloyees, approximately eighty-four percent (84%) being men. In 
1933 employment had declined about twenty percent (20%), the 
employees numbering around 16,000. 

It is estimated that the increase in employment resulting from the 
operation of the Code will be about ten percent (10%). 

The foregoing Census shows that the annual gross volume of busi- 
ness had reached the high total of $1,691,000,000. In 1932, due to 
the general economic conditions, the estimated volume had shrunk 
thirty percent (30%,), or to $1,084,000,000, and the net profit margin 
had been reduced from one and four-tenths percent (1.4%) to three- 
tenths percent (0.3%), since expenses could not be reduced in pro- 
pfjftion to sales volume. It is thought that the figures for 1933 will 
sliow still greater decline. 

I'he Industry claims that the average capital investment of each 
ostaljlishrnent is between $100,000 and $200,000, and that, with rare 
('XC('[)tions, all tobacxo wholesalers have been losing money for the 
past four years., 

(278) 



279 

The salary and wage bill of the Industry bulks quite large in pro- 
portion to total expenses but shows a relatively low percentage to 
net sales. It is difficult to approximate the increase in payrolls 
directly attributable to the Code, inasmuch as outside factors enter 
into such a calculation. However, a cross section of available data 
indicates an increase of ten percent (10%). 

The outstanding feature of the fair trade practice provisions is 
the cigar merchandising plan, which is also to be found in the Cigar 
Manufacturing, and Retail Tobacco Codes. It provides for the re- 
tail sale of cigars at prices not less than those declared by the manu- 
facturer for each of his products, and further prescribes maximum 
discounts allowable by manufacturers or wholesalers from those 
prices. 

This plan was originated by the retail dealers, and was proposed 
by them to the wholesalers and cigar manufacturers. At the Public 
Hearing on this Code it was supported by these three groups as well 
as by representatives of tobacco growers. It now has the approval 
of the Consumers Advisory Board, Industrial Advisoiy Board, Labor 
Advisory Board, and Legal Division. 

It has long been a recognized custom of the industry for manu- 
facturers to declare intended retail prices, and internal revenue taxes 
on cigars are computed on such a basis. The plan is based on this 
custom, but free competition between manufacturers, as well as 
industry's recognition of the imperative need for the retention of the 
five-cent cigar, should serve to prevent increase in prices. 

The sale of " long shot " cigars, induced by excessive discounts to 
distributors has been an abuse of consumers which will be remedied 
by the provisions limiting the amount of such discounts. This plan 
will permit each manufacturer to make the best possible cigar in 
each price class. 

The use of cigars as " loss leaders " by unrelated business has been 
a severe handicap to those persons whose major line of business is in 
tobacco and tobacco products. The placing of the retail price on the 
container of cigars should prevent passing down to the wholesaler 
the burden caused by such practices^ and thus protect those who are 
dependent for their livelihood on this trade. 

Part II of Article VI of the Code provides for the sale of tobacco 
products other than cigars carried by the merchandising plan in 
Part I. The most important feature of this Part II is the prohibi- 
tion of sales below the lowest reasonable cost to the wholesaler. 
The Administrator may, in order to temporarily restrict destructive 
price cutting, fix a basis for the minimum wholesale price of tobacco 
products which will be binding on all wholesale distributors. It will 
be an unfair trade practice for any wholesaler to sell or offer for 
sale any tobacco product below this minimum price. 

HOURS AND WAGES 

This Code provides a maximum work week of forty (40) hours, 
with a limitation of eight (8) hours in any twenty-four (24) hour 
period and six (6) days in any seven (7) day period, except that on 
one (1) day in each seven (7) day period employees may be permit- 
ted to work not in excess of ten (10) hours, provided however, that 
for a period not to exceed two (2) weeks in the calendar year em- 



280 

ployees may be permitted to work in excess of the maximum hours 
provided herein but not in excess of forty-eight (48) hours per week 
or nine (9) hours per day. All such extra hours shall be compen- 
sated for at the rate of time and one-third. 

In the event that the basic work week under the Code for the^ 
Wholesale Food and Grocery Trade is reduced to a maximum of less 
than forty (40) hours but not less than thirty-six (36) hours per 
week, the above provisions will be automatically amended so as to 
substitute in the place of " forty (40) hours " such shorter number 
of hours as shall be prescribed in such Code for the Wholesale Food 
and Grocery Trade ; and thereafter any changes either by way of re- 
duction (but in no event to less than thirty-six (36) hours or in- 
crease in such maximum hours in said Food Code shall result in a 
Jike increase or reduction of the said number of hours so substituted 
as aforesaid. 

It is provided that no wholesale tobacco establishment shall per- 
form any sales or service operations on Sunday. 

Exemptions are made for executives, provided they receive regu- 
larly not less than thirty-five dollars ($35.00) per week ; and outside 
salesmen. 

Outside delivery employees and billing and shipping clerks and 
cashiers, working in conjunction with the outside delivery employees 
in work of such nature that any inequality of hours would interrupt 
the routine of the outside delivery department, may be permitted to 
work not in excess of forty-eight (48) hours per week. 

Watchmen may be permitted to work not in excess of fifty-six 
(56) hours per week. 

Employees are under a minimum by population for a forty (40) 
hour week, starting at sixteen dollars ($16.00) in cities of 500,000 
population or over and graded to fourteen dollars ($14.00) per week 
in towns and cities up to 100,000 population, with the provision that 
in the South employees may be paid one dollar ($1.00) less than the 
minimum rate provided above, excepting that : 

(a) No office employee shall be paid less than at the rate of sixteen 
dollars ($16.00) per week, other than office boys and messengers 
where a differential of two dollars ($2.00) per week is permitted. 

(b) Delivery helpers, not to exceed one for each delivery vehicle 
used by the member, may be paid at the rate of eighty percent (80%) 
of the minimum wage provided herein. 

(c) Apprentice employees may be paid at the rate of one dollar 
($1.00) less than the minimum wage. 

(d) No outside salesman, whether on a commission basis or other- 
wise, shall be paid less than at the rate of twenty-five dollars ($25.00) 
per week of six (6) consecutive days. 

'J'lie weekly wages of all employees receiving more than the mini- 
m II 111 wages specified in this Article shall not be reduced below the 
rates existing on June 1, 1033, notwithstanding any reduction in the 
number of working hours of such employees. 



The Division 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: 



281 

«I find that: 

"(a) Said Code is well designed to promote the policies and pur- 
j)Oses 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 indus- 
try for the iDurj)ose 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 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 it is not classifi'sd by me as a major industry. 

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

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

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

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

For the above reasons this Code has been approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 

JtfNE 9, 1934. 

66673° 657-101 34 2 



CODE OF FAIR COMPETITION FOR THE WHOLESALE 
TOBACCO TRADE 

Aeticle I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act, this Code is established as a Code of Fair Competition 
for the Wholesale Tobacco Trade and its provisions shall be the 
standards of fair competition for such trade and shall be binding 
upon every member thereof. 

Article II — Definitions 

As used in this Code, the following words and phrases shall be 
defined as follows : 

Section 1. The term " President " means the President of the 
United States of America. 

Section 2. The term "Administrator " means the Administrator 
for Industrial Recovery. 

Section 3. The term "Act " means Title I of the National Indus- 
trial Recovery Act. 

Section 4. The term " tobacco products " includes, without limi- 
tation, all cigars, stogies, cheroots, little cigars, cigarettes, smoking 
tobacco, chewing tobacco and snuff. 

Section 5. The term " wholesale tobacco trade " means and in- 
cludes all selling and distributing of tobacco products at wholesale. 

Section 6. The terms " wholesale tobacco distributor ", " wholesale 
distributor ", and " member of the trade " mean any person en- 
gaged wholly or partially either as an employer or for his own 
account, in the wholesale tobacco trade. 

Section 7. The term " wholesale tobacco establishment " or " estab- 
lishment " means any place of wholesale business at which more 
than one-half the dollar volume of the sales made consists of tobacco 
products, or at which the principal line of business is the sale oi 
tobacco products. 

Section 8. The terms " tobacco retailer " and " retailer " mean 
any person engaged wholly or partially for his own account, in the 
selling of tobacco ])r(>ducts directly to the consumer and not for 
purposes of resale in any form. 

Seciton 9. The term " cigar manufacturer " means and includes 
any person engaged in the manufacturing into cigars of cured leaf 
tobacco, stemmed tobacco, scrap, and/or shredded filler. 

Section 10. The term "tobacco manufacturer" means and in- 
cludes any person engjiged in the nianufa(;<ure of cigarettes, smok- 
ing, tobacco, siiufF oi- tobacco products other than cigars, and the 
distribution theieof, exclusive, however, of distributicm by wholesale 
distributors or retailers. 

(2S2) 



283 

Section 11. The term " cigar " means and includes cigars, stogies, 
cheroots and little cigars. 

Section 12. The term " jobber " means any wholesale tobacco 
distributor who buys directly from the manufacturer. 

Section 13. The term " sub-jobber " means any wholesale tobacco 
distributor who purchases tobacco products from jobbers or jobbing 
establishments of manufacturers instead of directly from manu- 
facturers. 

(A person may be a jobber as to certain tobacco products and a 
sub- jobber as to others.) 

Section 14. The term " accredited cigar jobber " means any whole- 
sale distributor of cigars who maintains a sales organization and 
has an exclusive selling arrangement for a brand or brands of cigars 
for which he assumes the responsibility of promotion, distribution 
and care in a definite territory assigned to him. 

Section 15. The term " cigar service jobber " means any whole- 
sale distributor of cigars other than an accredited cigar jobber. 

(A jobber may be an accredited cigar jobber as to a certain brand 
or brands and a cigar service jobber as to others.) 

Section 16. The term " chain of stores " means a group of retail 
stores having single ownership and maintaining one or more bona 
fide central distributing depots from which individual units are serv- 
iced, and also bona fide central buying, storing, supervising and 
accounting organizations. 

Section 17, The term " employee " includes any and all persons 
engaged in the wholesale tobacco trade, however compensated, except 
a member of the trade. 

Section 18. The term " employer " means any person by whom any 
such employee is compensated or employed. 

Section 19. The term " executive " means an employee responsi- 
ble for the management of a business or a recognized subdivision 
thereof. 

Section 20. The term " outside salesman " means an employee who 
is engaged wholly or partially in selling outside the establishment, 
or any branch thereof, where he is employed. 

Section 21. The term " outside delivery employee " means an em- 
ployee engaged primarily in delivering merchandise outside the 
establishment where he is employed. 

Section 22. The term " watchman " means an employee who for 
not less than ninety (90) per cent of his working hours is engaged 
in watching and guarding the premises of the establishment. 

Section 23. The term " apprentice " means an employee with less 
than one (1) month's experience in the wholesale tobacco trade. 

Section 24. The term " person " includes all individuals, firms, 
partnerships, unincorporated associations, corporations and other 
forms of enterprise. 

Section 25. The term " State " means any State or Territory and 
the District of Columbia. 

Section 26. The term " South " includes the following States : 
Virginia, West Virginia, North Carolina, South Carolina, Georgia, 
Florida, Kentucky, Tennessee, Alabama, Mississippi, Arkansas, 
Louisiana, Oklahoma, New Mexico, and Texas. 



284 

Section 2T. Population for the purposes of this Code shall be 
determined by reference to the latest census of the United States. 

Section 28. The term "Association " means the National Asso- 
ciation of Tobacco Distributors Incorporated. 

Section 29. The term " Council " means National Tobacco Council, 
Inc., a New York Corporation, or such other agency as shall be 
designated for the purposes of Schedule I, hereto attached, by the 
Code Authority hereby established and by the Code Authorities for 
the Cigar Manufacturing Industry and the Ketail Tobacco Trade. 

Article III ^ — Hours 

Section 1. (a) Except as hereinafter provided no employee of 
any wholesale tobacco establishment shall be permitted to work in 
excess of forty (40) hours in any one week; or eight (8) hours in 
any twenty-four (24) hour period, except that on one day in each 
seven-day period employees may be permitted to work not in excess 
of ten (10) hours. 

(b) In the event that the basic work week under the Code for the 
Wholesale Food and Grocery Trade shall be 1-educed to a maximum 
of less than forty (40) hours but not less than thirty-six (36) hours 
per week, this Section 1 shall be amended so as to substitute in the 
place of " forty (40) hours " such shorter number of hours as shall 
be prescribed m such Code for the Wholesale Food and Grocery 
Trade; and thereafter any changes either by way of reduction (but 
in no event to less than thirty-six (36) hours) or increase in such 
maximum hours in said Food Code shall result in a like increase 
or reduction of the said number of hours so substituted as aforesaid. 

Section 2. No office employee shall be permitted to work more 
than forty (40) hours in any one week, nor more than eight (8) 
hours in any one day. 

Section 3. Watchmen may be permitted to work not in excess of 
fifty-six (56) hours in any one week. 

Section 4. Outside delivery employees and billing and shipping 
clerks and cashiers working in conjunction with the outside delivery 
employees in work of such nature that any inequality of hours 
would interrupt the routine of the outside delivery department may 
be permitted to work not in excess of forty-eight (48) hours in any 
one week. 

Section 5. For a period not to exceed two weeks in the calendar 
vear employees may oe permitted to work in excess of the maximum 
hours provided in Section 1, but not in excess of forty-eight (48) 
hours in any such week or nine (9) hours in any one day. All such 
extra hours shall be compensated for at the rate of time and 
one-third. 

Section 6. Executives who earn not less than thirty-five ($35) 
dollars per week and outside salesmen, may be permitted to work 
in excess of the maximum hours provided in this Code. 

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

Section 8. ^o wholesale tobacco establishment shall perform any 
sales or service operations on Sundays. 



liffectlvc June 25, 1934 — See paragraph 2 (5) of order approving this Code. 



285 

Section 9. No employer shall knowingly permit any employee to 
work for any time which when totalled with that already performed 
with anotlier employer, or employers, in this industry exceeds the 
maximum permitted herein. 

Article IV ^ — ^Wages 

Section 1. Except as hereinafter provided, the minimum weekly 
rates of wages which shall be paid to employees of wholesale tobacco 
establishments for a work-week as specified in Article III of this 
Code — whether such wages are calculated upon an hourly, weekly, 
monthly, commission, or any otlier basis — shall be as follows: 

(a) Within cities of over 500,000 population, no employee shall 
be paid less than at the rate of $16.00 per week for a forty (40) hour 
work-week, 

(b) Within cities of from 100,000 to 500,000 population, no em- 
jDloyee shall be paid less than at the rate of $15.00 per week for a 
forty (40) hour work- week. 

(c) Within cities of from 25,000 to 100,000 population, no em- 
ployee shall be paid less than at the rate of $14.00 per week for a 
forty (40) hour work- week. 

(d) In the South employees may be paid $1.00 less than the mini- 
mum wage rates provided above. 

Section 2. Delivery helpers not to exceed one for each delivery 
vehicle used by the wholesale distributor, may be paid at the rate 
of not less than eighty (80) per cent of the minimum wages provided 
in Section 1 of this Article. 

Section 3. Apprentice employees may be paid at the rate of $1,00 
less than the minimum wages provided in Section 1 of this Article, 

Section 4. No outside salesman, whether employed on a commis- 
sion basis or otherwise shall be paid less than at the rate of $25.00 
per week; six (6) consecutive days shall constitute a week for the 
purposes of this Section. 

Section 5. No person employed as a watchman shall be paid less 
than at the rate of $16.00 per week for a fifty-six (56) hour week. 

Section 6. No office employee shall be paid less than at the rate 
of $16.00 for a forty (40) hour work-week. 

Section 7. Office boys and messengers may be paid $2,00 per week 
less than the minimum wage rates provided in Section 6 provided 
that where there is more than one such office boy or messenger not 
more than ten (10) per cent of the total number of office employees 
may be so paid. 

Section 8. The weekly wages of all employees receiving more than 
the minimum wages specified in this Article shall not be reduced 
below the rates existing on June 1, 1933, notwithstanding any reduc- 
tion in the number of working hours of such employees. 

Section 9. A person whose earning capacity is limited because 
of age or 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 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 

» Efifective June 25, 1D34 — See paragraph 2 (5) of order approving this Code. 



286 

in the certificate. Such employer shall file monthly with the Code 
Authority a list of all such persons employed by him, showing the 
wages paid to, and the maximum hours of work for such employee. 

Article V — General. Labor Provisions 

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

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

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

Section 4. No person under the age of sixteen (16) years shall 
be employed in the wholesale tobacco trade. 

Section 5. No person under eighteen (18) years of age shall be 
employed or be permitted to work, at operations or occupations 
hazardous in nature or detrimental to health. The Code Authority 
shall submit to the Administrator within sixty (60) days after the 
effective date of this Code, a list of such occupations for his approval. 

Section 6. Employers shall make payment of all wages in lawful 
currency or by negotiable checks, payable on demand. All con- 
tracts of employment shall prescribe payment of wages at least every 
two weeks and salaries at least as often as every month. 

Section 7. No provision in this Code shall supersede any State or 
Federal law which imposes on employers more stringent requirem.ents 
as to age of employees, wages, hours of work, or as to safety, health, 
sanitary or general working conditions, or insurance or fire protec- 
tion, than are imposed by this Code. 

Section 8. Employers shall not change the method of payment of 
employees' compensation or re-classify employees or duties of occu- 
pations performed- by employees or engage in any other subterfuge 
so as to defeat the purposes of the Act or the provisions of this Code. 

Section 9. No employee paid at a rate in excess of the minimum 
shall be discharged and reemployed at a lower rate of pay for the 
purpose of evading the provisions of this Code. 

Section 10. All employers shall keep posted complete copies of the 
provisions of this Code dealing with hours, wages and conditions 
of employment in conspicuous places of easy and continuous access 
to employees, 

Seciion 11. 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 further 
issued by the Administrator. Such notices, bulletins and extracts of 
Code })rovi8ions shall be written in P>rglish and such other language 
as may be in general use thi'oughout the establishment. 



287 

Section 12. Every employer shall make reasonable provision for 
the safety and health of his employees at the place and during the 
hours of their employment. 

Standards for safety and health shall be submitted by the Code 
Authority to the Administrator within six months after the effective 
date of this Code. 

Section 13. After the effective date of this Code, wages shall be 
exempt from fines and rebates; and from charges and deductions, 
except charges and deductions for employees contributions volun- 
tarily made by employees or for benefit funds. No employer shall 
withhold wages except upon service of legal process or other papers 
lawfully requiring such withholding. 

Deductions for other purposes not heretofore stated may be made 
only pursuant to a contract in writing and kept on file by the 
employer for six months after the termination of the contract and 
which shall be kept open for the inspection of Government 
representatives. 

^Section 14. Female employees performing substantially the same 
work as male employees, shall receive the same rate of pay as male 
employees. 

Article VI — Prices 



Cigar Merchandising Plan} — The Merchandising Plan in Sched- 
ule I annexed hereto adopted for the Cigar Manufacturing Industry 
and for the Retail Tobacco Trade in their respective Codes of Fair 
Competition and hereinafter for convenient reference in part re- 
peated, is hereby accepted, adopted and approved; and all of the 
provisions of the said plan insofar as they purport to regulate the 
conduct of members of the wholesale tobacco trade are hereby made 
rules of fair practice and fair competition for all members of the 
wholesale tobacco trade. 

The provisions of said Schedule I and of this Article VI may be 
amended only by amendment of this Code and of the Codes for 
the Cigar Manufacturing Industry and the Retail Tobacco Trade. 
The said provisions may at any time be stayed by the Administrator, 
of his own motion or on application by any interested party, and 
on such notice and hearing, if any, as the Administrator may direct; 
and said provisions shall automatically be stayed upon the election 
of the Code Authority established by any one of said three Codes, 
such stay to become effective, unless such election shall have been 
meanwhile withdrawn, thirty (30) days after notice of such election 
shall have been filed with the Administrator. 

Section 1. Each jobber shall record with the Council the discounts 
and credit terms (not exceeding the discounts which such jobber 
shall have received from the manufacturer) to be allowed by the 
jobber from the retail price as determined pursuant to the provisions 
of said Schedule I in connection with all resales of cigars which in 



2 stayed until made effective pursuant to codes of fair competition for Cigar Manu- 
facturing Industry and Retail Tobacco Trade — See paragraph 2 (1) of order approving 
this Code. 

• All provisions for filing of prices and discounts in cigar merchandising plan tempo- 
rarily stayed — See paragraph 2 (3) of order approving this Code. 



288 

his discretion he may make to sub- jobbers. Such discounts shall be 
subject to change at the discretion of the jobber provided that the 
revised discounts be recorded witli the Council at least three days * 
before the change becomes effective unless a shorter time he reqwired 
in order to meet a comyetitorh reduction of price which is not in 
violation of this merchandising plan; * and the discounts so recorded 
shall so long as effective apply to all such resales by the jobber to 
sub- jobbers and there shall in no case be any individual variation 
or variations from the discount or discounts so established. 

Section 2. Each jobber and each sub- jobber shall record with the 
Council the discounts and credit terms (not exceeding the discounts 
from the retail price which such jobber or sub-jobber shall have 
received from the manufacturer or jobber, as the case may be) to be 
allowed upon all resales of cigars to retailers. Such discounts shall 
be subject to change at the discretion of the jobber or sub- jobber 
provided the revised discounts be recorded with the Council at least 
three days * before the change becomes effective unless a shorter 
time he required in order to m£et a competitoi''s reduction of price 
wsich is not in violation of this Tnerchandising plan; * and the dis- 
counts so recorded shall so long as effective apply to all such resales 
to retailers and there shall in no case be any individual variation 
or variations from the discount or discounts so established. 

Section 3. Each resale by a jobber or sub-jobber under this 
merchandising plan shall be evidenced by an itemized invoice. 

Section 4. Nothing in this Part I contained shall affect or modify 
the provisions set forth in Schedule I in relation to drop shipment 
sales. 

Section 5. No jobber or sub- jobber shall sell cigars directly to the 
consumer except through an established retail department and in 
compliance with the provisions of this merchandising plan relating 
to sales by retailers. 

Section G. Upon the recommendation of the Code Authority es- 
tablished by this Code or the Code for the Cigar Manufacturing In- 
dustry or the Code for the Retail Tobacco Trade or upon application 
of any member of the Cigar Manufacturing Industry or of the Whole- 
sale Tobacco Trade or of the Retail Tobacco Trade and the approval 
of such recommendation or application by the Administrator, the 
Code Authorities established by the said several Codes, shall, upon 
such notice and opportunity to be heard, if any, as the Administrator 
may require, determine by joint action minimum discounts to be 
prescribed in connection with sales of cigars by any member of the 
trade, and such determination shall be effective only upon the con- 
currence of all three Code Authorities and, subject to the approval 
of the Administrator, such minimum discounts shall be binding 
upon all members of the trade. 

Section 7. Wherever any of the provisions of this merchandising 
plan provide for two or more discounts from the retail price, such 
discounts shall bo comput(!d separately and successively so that each 
succeeding discount shall be computed upon the balance of the retail 
price remaining after the deduction of the next preceding discount 
provided for. 

•Italicized words deleted — See paragraph 2 (2) of order approving this Code. 



289 

Section 8. Any change in the retail price shall be applicable as 
at the effective date of such change to all merchandise thereafter 
sold by wholesale distributors, but wholesale distributors may, not- 
withstanding any reductions of the retail price, dispose of existing 
stocks on the basis of the retail price prevailing when such stocks 
were acquired. 

Section 9. Nothing in this merchandising plan shall be construed 
to prevent the free and general distribution of articles commonly 
used for advertising purposes and premiumSj except insofar as such 
distribution or use of premiums would constitute, in effect, an addi- 
tional discount or a reduction in price below the minima established 
hereby. 

Section 10. All prices and discounts filed with the Council by 
iobbers or sub- jobbers, as hereinbefore provided shall immediately 
be reported by the Council to the respective Code Authorities for the 
Cigar Manufacturing Industry, the Wholesale Tobacco Trade and 
the Retail Tobacco Trade. Each such Code Authority shall cause 
such prices and discounts to be made available to all members of its 
respective industry or trade and shall comply with any regulations 
which may be issued by such Code Authority with the approval of 
the Administrator as to the publication and dissemination thereof. 



Minimum Prices For Products Not Governed By The Plan. — As to 
cigars with respect to which the 'pro^*isions of Part I or Schedule I 
shall not at, the tinue he operative or shall he stayed and ^ as to ciga- 
rettes, smoking tohacco, che'ming tohacco and snuff, the following 
trade practices shall he ohserved hy all nienhers of the wholesale 
tohacco trade. 

Section 1. No wholesale distributor sh^l at any time sell any such 
tohacco product helow the merchandise cost thereof to such whole- 
sale distHhutor. For the purposes of this Part II the term " mer- 
chamdise cost " means {1) actual net delivered cost, less trade dis- 
counts or current replacement cost, whichever is lower; and in addi- 
tion thereto, (£) the amounit of any tax on the sale of the product 
directly paid hy the wholesale distributor, or (S) in the event of a 
sale involving a shipment to a buyer situated at the time of such sale 
in another state, an amount equal to all taxes other than taxes paid 
directly hy the m./inufactu/rer which would he included in the sale 
price of such product were such product bought from a wholesale 
distributor located in such stale. 

Section 2. The Code Authority shall ° from ti?ne to time upon 
such notice and opportunity to he heard, if any, as the Administrator 
mxiy require, determine the lowest reasonable cost of the wholesale 
distribution of tobacco products, such determination to be subject to 
the approval of the Administrator. It shall be an unfair trade prac- 
tice and is hereby prohihited far any wholesale distHhutor to sell or 
offer to sell any tobacco product at such price or upon such terms or 
conditions of sale that the buyer will pay less therefor than such 



'Italicized words deleted — See paragraph 2 (4) of order approving this Code. 



290 

lowest reasonable cost of distribution as so determined and apjyfoved, 
plus the merchandise cost thereof to such wholesale distributor. 

Section 3. Pending a determination pursuant to Section 2 of this 
Part 11^ and in order temporarily to restnct destructive price-cutting 
in the wholesale tobacco trade, the Admimstrator may, subject to 
su^h notice and opportunity to be heard as he may deem necessary, 
■fix a basis for the computation of the minimum^ wholesale price 
of tobacco products, which shall be binding on all wholesale dis- 
tributors.^ 

"As to cigars, with respect to which the provisions of Part I or 
Schedule I shall not at the time be operative or shall be stayed, and 
as to cigarettes, smoking tobacco, chewing tobacco and snuff, the 
standards of fair competition for the trade with reference to pricing 
practices are declared to be as follows : 

" Section 1 (a) : Wilfully destructive price cutting is an unfair 
method of competition and is forbidden. Any member of the trade 
or of any other trade or industry or the customers of either may, 
at any time, complain to the Code Authority that any actual price 
constitutes unfair competition as destructive price cutting, imperilling 
small enterprises or tending toward monopoly or the impairment 
of code wages or working conditions. The Code Authority shall, 
within five days, afford an opportunity to the member making such 
price to answer such complaint and shall, within fourteen days, make 
a ruling or adjustment thereon. If such ruling is not concurred in 
by either party to the complaint, all papers shall be referred to 
the Research and Planning Division of NRA which shall render a 
report and recommendation thereon to the Administrator. 

"(&) : "When no declared emergency exists as to such products or 
any specified part thereof, there is to be no fixed minimum basis 
for prices. 

" It is intended that sound cost estimating methods should be used 
and that consideration should be given to costs (including costs 
of wholesale distribution) in the determination of pricing policies. 

"(o) When an emergencyj by reason of unfair competitive prac- 
tices or other conditions, exists in the trade as to such products or 
any specified part thereof, sale below the stated minimum price of 
such products or such specified part thereof, in violation of Section 
2 hereof, is forbidden. 

" Section 2. Emergency Provisions. — {a) : If the Administrator, 
after investigation, shall at any time find both (1) that an emer- 
gency has arisen within the trade, adversely affecting small enter- 
prises or wages or labor conditions, or tending toward monopoly 
or other acute conditions which tend to defeat the purposes of the 
Act: (2) that the finding of a basis for determining minimum 
prices for such products or any specified part thereof is necessary 
for a limited period, to correct the conditions constituting such 
emergency and to effectuate the purposes of the Act, the Code Au- 
thority may cause an impartial agency to investigate costs (including 
the costs of wholesale distribution) and to recommend to the Ad- 
ministrator a basis for determining minimum prices of the said 
products or the said specified part tlicreof affected by the emer- 

• Italicized words deleted — See paragraph 2 (4) of order approving tbis Code. 



291 

gency, and thereupon the Administrator may proceed to fix a»basig 
for determining such minimum prices. 

"(6) : When the Administrator shall have fixed a basis for de- 
termining minimum prices for the said products or said specified 
part thereof for a stated period, which prices shall he reasonably] 
calculated to correct the conditions of such emergency and to effectu- 
ate the purposes of the Act, he shall publish the said basis. There- 
after, during such stated period, no member of the trade shall sell 
such products at a net realized price below the minimum pricQ 
determined upon the bases so fixed, and any such sale shall be deemed 
destructive price cutting. From time to time, the Code Authority 
may recommend review or reconsideration or the Administrator 
may cause any determination hereunder to be reviewed or reconsid- 
ered, and appropriate action taken." ® 

Section 3. Notwithstanding the provisions of this Part II any 
wholesale distributor may sell any tobacco product as low as the 
price set by any competitor in his trade area on merchandise which 
IS identical or essentially the same, if such competitor's price is 
set in conformity with the provisions of this Section, provided that 
such wholesale distributor shall immediately notify the Code Au-* 
thority or its nearest local agency of such action and of all facts 
pertinent thereto. 

Section 4. Notwithstanding any of the provisions of this Part 
II, any tobacco wholesaler may sell at less than the prices therein 
prescribed merchandise sold as bona fide clearance or bona fide dis- 
continued lines of merchandise or imperfect or actually damaged 
merchandise or merchandise sold upon the complete final liquida- 
tion of any business or merchandise donated for charitable pur- 
poses or to unemployment relief agencies, provided that all such 
merchandise shall be advertised, marked and sold as such and that 
a strip label shall be placed across the inside lid label of box goods 
to be disposed of, stating the reason the said merchandise is being 
sold below the prescribed prices therefor and provided further that 
such merchandise shall be disposed of pursuant to any regulation 
as to the manner of such disposal which shall be issued by the Code 
Authority subject to the disapproval of the Administrator. 

Article VII — Trade Practices 

Section 1. False Advertising. — The making of or causing or peiv 
mitting to be made or published any false, untrue or deceptive state- 
ment by way of advertising or otherwise concerning the grade, 
quality, quantity, substance, character, nature, origin, size or prep- 
aration of any product of the trade, having the tendency and capac- 
ity to mislead or deceive purchasers or prospective purchasers and 
the tendency injuriously to affect the business of competitors is pro- 
hibited as an unfair method of competition. 

Section 2. Deceptive Branding. — Tlie infringement of established 
trademarks and the use of trademarks or trade names which will 
result in deception of the public or enable wholesale distributors 
to perfect such deception is prohibited as an unfair method of com- 
petition. 



• Preamble and sections 1 and 2 added — See paragraph 2 (4) of order approving thia 
Code. 



292 

Section 3. Territoi^aZ Protection AgaiTist Illegitimate Sales. — 
Where a manufacturer has granted a wholesale distributor an ex- 
clusive territory for the distribution of his product, the obtaining 
by any other wholesale distributor of such product and shipping 
same to dealers within said territory is prohibited as an unfair 
method of competition. 

Section 4. False Billiiig. — No wholesale distributor shall know- 
ingly withhold from or insert in any quotation or invoice any state- 
ment that makes it inaccurate in any material particular. 

Section 5. Inaccurate Labelling. — No wholesale distributor shall 
brand or mark or pack any tobacco products in any manner which is 
intended to or does deceive or mislead purchasers with respect to 
brand, grade, quality, quantity, origin, size, substance, character, 
nature, material content, or preparation of such tobacco products. 

Section 6. Inaccurate References To Competitors., Etc. — No whole- 
sale distributor shall publish advertising which refers inaccurately 
in any material particular to any competitor or his goods, prices, 
values, credit terms, policies or services. 

Section T. Threats of Law Suits. — No wholesale distributor shall 
publish or circulate unjustified or unwarranted threats of legal 
proceedings which tend to have the effect of harrassing competitors 
or intimidating their customers. Failure to prosecute in due course 
shall be evidence that any such threat is unwarranted or unjustified. 

Section 8. Bribing Employees. — No wholesale distributor shall 
give, permit to be given, or directly or indirectly offer to give any- 
thing of value for the purpose of influencing or rewarding the action 
of any employee, agent or representative of another in relation to the 
business of the employer of such employee, the 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. 

Section 9. Interferenee With Another^s Contracts. — No wholesale 
distributor shall attempt to induce the breach of an existing contract 
between a competitor or customer or source of supply ; nor shall any 
such member interfere with or obstruct the performance of such 
contractual duties or services. 

Section 10. Coercion. — No wholesale distributor shall require that 
a purchase of any tobacco product or other goods be a prerequisite 
to the purchase of any other tobacco products. 

Section 11. Rebates. — (a) No member of the industry shall 
secretly, directly or indirectly, offer to make any payment or allow- 
ances of a rebate, refund, commission, credit, unearned discount, or 
excess allowance, whether in the form of money or otherwise. 

(b) No member of the industry shall, directly or indirectly, offer 
to extend to any customer any special price, terms, service or privi- 
lege not extended to all customers of the same class in the same mar- 
keting area, for the purpose of influencing a sale, or with the effect 
of influencing a sale. 

Seciton 12. Invoice and Billing. — No member of the industry 
shall sell any merchandise, either on open account or for cash, unless 



293 

an itemized bill or invoice bearing the name and address of the whole- 
saler is issued at the time such sale is made. 

Section 13. Protection to Retailers. — It shall be an unfair trade 
practice for members of the trade to enter or engage in competition 
with retailers, by selling merchandise at wholesale prices to ultimate 
consumers for personal use. Nothing in tliis section, however, shall 
prevent bona fide sales to employees in wholesale tobacco establish- 
ments for their personal use. 

Akticle VIII — Organization, Powers and Duties of the Code 
Authority 

organization and constitution 

Section 1. There shall forthwith be constituted a Code Authority 
consisting of not more than ten (10) members to be selected as 
follows : 

Eight members shall be designated by the Board of Directors or 
the Executive Committee of National Association of Tobacco Dis- 
tributors, Incorporated. 

One member shall be appointed by the Consumers' Advisory Board 
of the National Recovery Administration. 

One member shall be a non-member of National Association of 
Tobacco Distributors, Incorporated and a non-member of any of its 
affiliated associations and shall be designated by such non-members 
in a manner to be formulated by the other members of the Code 
Authority and submitted to the Administrator for his approval 
within fifteen (15) days after the effective date hereof. 

Section 2. In addition to membership as above provided, there 
may be not more than three (3) members, to be appointed by the 
Administrator, to serve without vote. 

Section 3. The Association and each trade or industrial associa- 
tion directly or indirectly participating 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 association, by-laws, regulations, and any amendments 
when made thereto, together with such other information as to mem- 
bership, organization, and activities as the Administrator may deem 
necessary to effectuate the purposes of the Act. 

Section 4. In order that the Code Authority shall at all times be 
truly representative of the trade and in any 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 of the method of selection 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 shall any member of the Code Author- 
ity exercising reasonable diligence in the conduct of his duties here- 



294 

under, be liable to anyone for any action or omission to act under 
this Code, except for his own willful misfeasance or non-feasance. 
Section 6. 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 considera- 
tion by such Code Authority or agency pending final action which 
shall not be effective unless the Administrator approves or unless he 
shall fail to disapprove after thirty days' notice to him of intention 
to proceed with such action in its original or modified form. 

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 
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 trade 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 trade such information and 
reports as are rec[uired for the Administration of the Code. In addi- 
tion to information required to be submitted to the Code Authority, 
members of the trade subject to this Code shall furnish such sta- 
tistical information as the Administrator may deem necessary for 
the purposes recited in Section 3 (a) of the Act to such Federal and 
State agencies as he may designate; provided that nothing in this 
Code shall relieve any member of the trade of any existing obliga- 
tions to furnish reports to any Government agency. No individual 
report shall be disclosed to any other member of the trade or any 
other party except to such other 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 Au- 
thority of its duties or responsibilities under this Code and that such 
trade associations and agencies shall at all times be subject to and 
comply with the provisions hereof. 

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

(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 arc 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 : 



295 

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 trade; 

(c) After such budget and basis of contribution have been 
approved by the Administrator, to determine and collect equi- 
table contributions a^ above set forth, and to that end, if neces- 
sary, to institute legal proceedings therefor in its own name. 

(2) Each member of the trade 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 
trade complying with the Code and making such contribution shall 
be entitled to participate in the selection of the members of the 
Code Authoritv or to receive the benefits of its voluntary activities or 
to make use of any N.R.A. insignia. 

(g) To cooperate with the Administrator in regulating the use 
of any N.R.A. insignia solely by those members of the trade who 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 tlie trade in their relations with each other or 
with other trades or industries; measures for industrial planning, 
and stabilization of employment; and including modifications or 
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 trade for the purpose of formulating fair trade 
practices to govern the relationships between emploj^ers under this 
code and under such otlier codes to the end that such fair trade 
practices may be proposed to the Administrator as amendments to 
this Code and such other codes. 

(i) 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. 

Section 8. Any member of the trade may submit data tending to 
prove that such member is placed at a competitive disadvantage with, 
or is subject to different economic conditions to those of other mem- 
bers of the trade ; and the Code Authority may, after investigation, 
recommend to the Administrator that changes be made in the Labor 
Provisions of this Code, and upon approval by the Administrator, 
after such notice and hearing as he may specify, such new provisions 
shall become effective for that member of the trade. 

Section 9. Whenever any question may. arise under this Code as to 
the construction and meaning of any portion thereof, the Code 
Authority may issue such interpretations as may be necessary to 
effectuate the operation of and compliance with the policy of the Act>, 
subject at all times to the approval of the Administrator and such 
interpretations approved by the Administrator shall become opera- 
tive as a part of this Code. 



296 

Section 10. No provision of this Code shall deny to any member 
of the trade or to any party in any proceeding the right to appeal 
to the Administrator nor prevent, at any time, direct appeal to him 
from any determination of the Code Authority. The Code Author- 
ity may, if it chooses, invoke the procedure provided for in this 
section. 

Article IX — Modification 

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

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

Article X — Monopolies, Etc. 

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

Article XI — Effective Date 

This Code shall become effective the date specified in the order of 
approval of this Code by the President of the United States. 

Approved Code No. 462. 
Registry No. 1615-15. 



Schedule I * — Cigar Merchandising Plan * 

A. SALES BY CIGAR MANUTAOTUREES 

Section 1. As to each of the cigars of his manufacture, each cigar manufao 
turer shall record with the Council the minimum sales price at which such 
cigar is Intended to be sold at retail (exclusive of any governmental tax or 
charge thereon required to be paid by the jobber or retailer), which price, 
hereinafter referred to as " the retail price " shall constitute the basis for 
computing the discounts and terms for all dealers as hereinafter provided ; 
and shall also record with the Council the discounts and credit tei-ms to be 
allowed by him from the retail price in connection with the several respective 
-classes of transaction described in subdivision (a) to (d) inclusive of Section 2 
of this Division A. The retail price and, witiiin the limits hereinafter pre- 
scribed, the discounts sliall be subject to change at the discretion of the manu- 
facturer, provided the revised price or discounts as the case may be, be recorded 
with the Council at least (5) days' before the change becomes effective unless 
a shorter time be required by a cigar nuimtfacturer in order to meet a com,peti- 
tor's reduction of price uJiich is not in vlolatu»v of this merchandising plam^ 
The retail price shall be prominently marked on each container of cigars. 

Section 2. From the recorded retail price, each cigar manufacturer shall, 
as to each of his cigars, grant discounts to be established by him in his dis- 
cretion within the limits hereinafter in this Section 2 prescribed, as follows: 

(a) In the case of sales, if any, to retailers other than sales to chains of 
stores and other than drop shipment sales under subdivision (d) of this 
Section 2, a discount of not more than twenty-eight percent (28%). 

(b) In the case of sales to accredited cigar jobbers, a discount, in addition 
to the discount which shall have been established by the manufacturer under 
subdivision (a), of not more than fourteen percent (14%). 

(c) In the case of sales to cigar service jobbers, a discount, in addition to 
the discount which shall have been established by the manufacturer under 
subdivision (a), of not more than sixty-six and two-thirds percent (66%%) 
of the established discount to accredited jobbers. Provided, however, that in 
territories where no accredited cigar jobber exists, a manufacturer may allow 
a cigar service jobber a discount not to exceed ten percent (10%) on any 
particular class of cigars in addition to the discount which shall have been 
established by the manufacturer under subdivision (a). 

(d) In a territory where a cigar manufacturer has an accredited cigar 
jobber, the cigar manufacturer may, in his discretion, mal^e drop shipments to 
retailers or sub-jobbers, provided the accredited cigar jobber agrees to or 
requests such shipments; in a territory where the cigar manufacturer has no 
accredited cigar jobber, the cigar manufacturer may, in his discretion, make 
drop shipments to retailers. Provided that in either case shipments shall bo 
made only in quantities of not less than 2,000 cigars in the case of Class A 
and Class B cigars, and not less tlian 1,000 cigars in the case of Class C or 
higher classes. 

For such sales or drop shipments, there shall be established a discount for the 
drop shipment purchaser, in addition to the discount which shall have been 
established by the manufacturer under subdivision (a), of not more than five 
percent (5%), and this discount shall be allowed by the manufacturer or 
Jobber, whichever sliall make the billing. 



1 Stayed until made effective pursuant to codes of fair competition for Cigar Manufac- 
turing Industry and Retail Tobacco Trade — See paragraph 2 (1) of order approving 
this Code. 

2 All provisions for filing of prices and discounts In cigar merchandising plan tempo- 
rarily stayed — See paragraph 2 (3) of order approving this Code. 

» Italicized words deleted. See paragraph 2 (2) of order approving this Code. 

(297) 



298 

The cigar manufacturer may in connection with each drop shipment 
sale allow to the accredited cigar jobber who has requested or consented 
to such sale a service credit. Provided, that the total of the service credit 
and the discount allowed to the drop shipment purchaser and the accredited 
cigar jobber shall not exceed the fourteen percent (14%) set forth in sub- 
division (b) above. 

(e) In the case of sales to chains of stores, discounts not exceeding the 
discounts which the manufacturer shall have established for his sales to 
accredited cigar jobbers under subdivision (b), provided, however, that each 
cigar manufacturer may determine in his own discretion to which chains, 
if any, he will make direct sales and, within the limits hereinabove pre- 
scribed, the amount of discounts on each such sale. 

On each transaction in any of the categories (a) to (d) inclusive above 
described, the cigar manufacturer may aUow a further discount of 2% for 
cash within his established credit terms. 

Nothing herein contained shall prevent any cigar manufacturer from estab- 
lishing within the maximum percentage limit hereinabove prescribed a 
different schedule of discounts with respect to each of the several brands, 
sizes, shapes or prices of his products, or a schedule of discounts different 
from that of any other cigar manufacurer; but each cigar manufacturer 
shall apply his established system of discounts uniformly as to each of the 
classes of transactions above enumerated in subdivisions (a) to (d) inclusive, 
and within each of the said classes of transactions there shall in no case 
be any individual variation or variations from the discount or discounts so 
established by such cigar manufacturer. The service credits provided for in 
subdivision (d) need not be uniform and may vary in each individual case. 

Section 3. No manufacturer shall sell cigars at retail to consumers except 
in accordance with the provisions of this merchandising plan relating to 
sales by retailers; but the provisions of this merchandising plan shall not 
apply to any cigar manufacturer who sells exclusively and directly to the 
consumer. 

Section 4. No manufacturer shall offer or give a free deaL The term 
" free deal " as used in this paragraph means the gift of cigars or anything 
of value or any special deal, discount or allowance conditioned upon the pur- 
chase of a product. 

Section 5. All sales by manufacturers shall be evidenced by itemized in- 
voices showing the retail price and the discounts granted therefrom. 

E. SALES BY JOBBERS AND SUB-JOBBERS 

Section 1. Each jobber shall record with the Council the discounts and 
credit terms (not exceeding the discounts which such jobber shall have re- 
ceived from the manufaclurer) to be allowed by the jobber from the retail 
price in connection with all resales of cigars which in his discretion he may 
make to sub-jobbers. Such discounts shall be subject to change at the dis- 
cretion of the jobber provided that the revised discounts be recorded with 
the Council at least three days" before the change becomes effective unless 
a shorter time be required in order to meet a competitor's reduction of price 
which is not in violation of this nierchmulisiiig plan," and the discounts so 
recorded shall so long as effective apply to all such resales by the jobber to sub- 
jobbers and there shall in no case be any individual variation or variations 
from the discount or -discounts so established. 

Seoiton 2. Each jobber and each sub-jobber shall record with the Council 
the discounts and credit terms (not exceeding the discounts from the retail 
price which such jobber or sub-jobber shall have received from the manu- 
facturer or jobber, as the case may be) to be allowed upon all resales of 
cigars to retailers. Such discounts shall be subject to change at the discretion 
of the jobber or sub-jobber provided the revised discounts be recorded with 
the Council a^t least three days ' before the change becomes effective unless a 
shorter time be required in order to meet a competitor's reduction of price 
which is not in violation of this mcrcha'ndising plan; ^ and the discounts so 
recorded shall, so long as effective, apply to all such resales to retailers and 
there sliall in no case be any Individual variation or variations from the dis- 
count or discounts so established. 



Italicized words deleted. Sec paragraph 2 (2) of order approving tbls Code. 



299 

Sbotton 8. Each resale by a Jobber or sub-Jobber under this merchandising 
plan shall be evidenced by an itemized invoice. 

Seotton 4. Nothing In this Division B contained shall affect or modify tha 
provisions above set forth in Division A in relation to drop shipment sales. 

Section 5. No Jobber or sub-Jobber shall sell cigars directly to the consumer 
except through "an established retail department and in compliance with the 
provisions of this merchandising plan relating to sales by retailers. 

a SALES BY RETTAILEBS 

Section 1. In the case of all cigars purchased by retailers from cigar manrt. 
facturers, Jobbers, or sub-Jobbers in connection with which a retail price shall 
have been recorded by the manufacturer as hereinabove provided, the retailer 
shall sell such cigars at retail at not less than the retail price so recorded. 
provided, however, that (1) in the case of the sale at retail of multiples of 
not less than ten units (except in the case of cigars selling for less than five 
cents (5^) each) a discount may be allowed of not more than five percent 
(5%) from the retail price, and (2) in the case of sales at retail of boxes or 
twenty-five (25) cigars or more a discount of not more than eight percent 
(8%) from the retail price may be allowed unless the cigar manufacturer shall 
record with the Council and mark a box price thereon involving a discount 
of less than eight percent (8%) in which case the marked box price shall be 
observed as a minimum, and (3) the retailer may give not more than one pad 
of matches for each unit sold, or five pads per box of twenty-five cigars or teu 
pads per box of fifty (50) cigars sold. In the case of any retailer granting a 
cash discount upon all purchases made, any sales of cigars shall be excluded in 
computing the cash discount to be allowed, or the amount of cash discount shall 
be included in the price of the merchandise sold in addition to the minimum 
prices herein provided. 

Section 2. Upon any sale to a consumer, situated at the time of such sale 
In a state imposing a tax on tobacco products or the sale thereof (other than 
a tax payable by the manufacturer) the amount of such tax, if not paid by the 
consumer, shall be added to the minimum price herein provided, whether the 
seller shall be located within or without such state. 

Section 3. Notwithstanding the provisions of this merchandising plan, any 
tobacco retailer may sell at less than the prices therein prescribed merchandise 
sold as bona fide clearnnce or bona fide discontinued lines of merchandise or 
imperfect or actually damaged merchandise or merchandise sold upon the com- 
plete final liquidation of any business or merchandise donated for charitable 
purposes or to unemployment relief agencies, provided that all such merchandise 
shall be advertised, marked and sold as such and that a strip label shall he 
placed across the inside lid label of box goods to be disposed of, stating the 
reason the said merchandise is being sold below the prescribed prices therefor 
and provided further that such merchandise shall be disposed of pursuant to 
any regulation as to the manner of such disposal as shall be issued by the Code 
Authority subject to the approval of the Administrator. 

Section 4. Except as in this merchandising plan otherwise expressly provided 
wherever under any of the provisions of this merchandising plan any cigar ig 
required to be sold at retail at a minimum price, such minimum retail price 
shall not be reduced directly or indirectly or by any device or subterfuge such as 
the giving of any trading or merchandise coupons, prizes or premiums or any 
other thing of value or discount, rebate, refund, commission, credits or allow- 
ances whether in the form of money or otherwise; nor .shall any retailer offer 
or extend special service or privilege to any customer which is not available 
to all customers. 

D. MINIMUM mSCOUNTS 

Upon the recommendation of the Code Authority established by the Code for 
the Cigar Manufacturing Industry or the Code for the Wholesale Tobacco Trade 
or the Code for the Retail Tobacco Trade or upon application of any member 
of the Cigar Manufacturing Industi-y or of the Wholesale Tobacco Trade or of 
the Retail Tobacco Trade and the approval of such recommendation or applica- 
tion by the Administrator, the Code Authorities established by the said several 
codes, shall, upon such notice and opportunity to be heard, if any, as the 
Administrator may require determine by joint action minimum discounts to be 



300 

prescribed In connection with sales of cigars by any member of said Industry 
or Trades and such determination shall be effective only upon the concurrence 
of all three Code Authorities and, subject to the further approval of the 
Administrator, such minimum discounts shall be binding upon all such members. 

B. PROVISIONS APPLICABLE TO ALL SALES OF CIGARS 

Section 1. Wherever any of the provisions of this merchandising plan provide 
for two or more discounts from the retail price, such discounts shall be com- 
puted separately and successively so that each succeeding discount shall be 
computed upon the balance of the retail price remaining after the deduction of 
the next preceding discount provided for. 

Section 2. Any change in the retail price shall be applicable as at the effective 
ciate of such change to all merchandise thereafter sold by wholesale distributors, 
or retailers, but wholesale distributors may, notwithstanding any reduction of 
the retail price, dispose of existing stocks on the basis of the retail price 
prevailing when such stocks were acquired. 

Section 3. Nothing in this merchandising plan shall be construed to prevent 
the free and general distribution of articles commonly used for advertising 
purposes and premiums, except insofar as such disti-ibution or use of premiums 
would constitute, in effect, an additional discount or a reduction in price below 
the minima established hereby. 

Section 4. All prices and discounts filed with the Council by manufacturers, 
jobbers or sub-jobbers, as hereinbefore provided shall immediately be reported 
by the Council to the respective Code Authorities for the Cigar Manufacturing 
Industry, the Wholesale Tobacco Trade and the Retail Tobacco Trade. Each 
such Code Authority shall cause such prices and discounts to be made available 
to all members of its respective industry or trade and shall comply with any 
regulations which may be issued by such Code Authority with the approval of 
the Administrator as to the publication and dissemination thereof. 

o 



Approved Code No. 463 
CODE OF FAIR COMPETITION 

FOR THE 

CANDY MANUFACTURING INDUSTRY 

As Approved on June 11, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Code of Fair Competition for the Candy 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 my approval of a Code 
of Fair Competition for the Candy Manufacturing Industry, and 
hearings having been held thereon, and the Administrator having 
rendered his report containing an anal^^sis of the said Code of Fair 
Competition, together with his recommendations and findings with 
respect thereto, and the Administrator having found that the gaid 
Code of Fair Competition complies in all respects with the pertinent 
provisions of Title I of said Act, and that the requirements of 
clauses (1) and (2) of sub-section (a) of Section 3 of said Act 
have been met: 

NOW, TFIEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I 
of the National Industrial Recovery Act, approved June 16, 1933, 
and otherwise, do approve the report and recommendations and 
adopt the findings of the Administrator and do order that the said 
Code of Fair Competition be and it is hereby approved; provided, 
however, that the provisions of Article VII, Section 1, insofar as 
they prescribe a waiting period between the filing with the Code 
Authority (i.e. actual receipt by the Code Authority) and the effec- 
tive date of revised price lists or revised terms and conditions of 
sale be and they are hereby stayed pending my further order; and 
l^rovided, that the provisions of Article VIII, Rule 13, insofar as 
they prohibit the use of premiums, be and they are hereby stayed 
pending my further order; and provided, further that the provisions 
of Article VIII, Rule 19, shall not become effective and they are 
hereby stayed for a period of ten (10) days in order to afford con- 

66505°- G57-06 34 (301) 



302 

sideration of the objections of any interested parties, and at the 
expiration of which period the provisions of said Article VIII, 
Rule 19 shall become effective unless I shall by my further Order 
otherwise determine or extend such stay; and provided, further, that 
before September 15, 1934, the Administrator may, after due notice, 
hold such further hearings as he may deem necessary for the pur- 
pose of determining the adequacy of the minimum wages established 
in this Code. 

FRANKLIN D. ROOSEVELT. 
Ajiproval recommended : 
Hugh S. Johnson, 

Administrator for IndifstriaJ Recovery. 

TiiK ^V^iiiTE House, 

June //, IU3]^ 



LETTER OF TRANSMITTAL 

The President, 

The White IIoiLse. 

Sir : A Public Hearing on the Code of Fair Competition for the 
Candy Manufacturing Industry, submitted by the National Confec- 
tioners' Association of the United States, Inc., (established April 23, 
1884) was conducted in Washington on the 13th of March, 1934, in. 
accordance with the provisions of the National Industrial Recovery 
Act. The Association claims to represent seventy percent (70%) of 
the Industry. 

The original proposed Code was filed by the Association the 2ncl 
of August, 1933, with the National Recover}^ Administration. By 
Executive Order of October 20, 1933, the Administration of the Code 
(other than provisions relating to hours of labor, rates of pay, and 
other conditions of employment) was delegated to the Secretary of 
Agriculture. Subsequently the Executive Order of January 8, 1934, 
amending the Executive Order of October 20, 1933, provided for 
transfer of the entire Code to the Administrator for Industrial Recov- 
ery. The provisions of the Code, as submitted for your approval, are 
substantiated by the official record of the Public Hearing, information 
and facts contained in filed briefs or as a result of Post-Hearing 
Conferences held with the Code Committee. 

ECONOMIC EFFECT OF THE CODE 

It is stated the Industry, national in scope, comprises approxi- 
mately 1,565 units of which number 988 units are primarily engaged 
in the manufacture of candy for wholesale distribution. The remain- 
ing 578 units are divided among all types of candy manufacturers 
other than those distributing the product of their manufacture at 
wholesale, Avith the majority classified as those distributing the prod- 
uct of their manufacture through controlled retail outlets. The defi- 
nition of a member of the Industry is intended to include the 
manufacturer of candy, however distributed, except the retail estab- 
lishment which is engaged in the manufacture of candy on the retail 
premise and whose principal function of business is not primarily 
that of candy manufacture. 

The concerns engaged in this Industry vary in size from the small 
operator producing annually a volume of business of less than 
$10,000.00 to the large operator producing annually a volmne of busi- 
ness in excess of $5,000,000.00. It has been difficult to develop a code 
acceptable to all members of the Industry. It is anticipated that the 
Code provisions will differ materially in their effect on various con- 
cerns with respect to type of product, labor, degree of mechanization, 
location and other factors. Therefore, Article XIII of the Code 
provides that the Administrator may review its provisions not later 
than September 15, 1934. 

(803) 



304 

Tlie capital investment of the Industry may safely be stated to be 
in excess of $150,000,000.00. The value of the Industry products are 
said to annually exceed $250,000,000.00. 

It is estimated the Industry, as defined in the Code, normally 
employs approximately 60,000 employees. 

HOURS AND WAGES 

Under the Code, employees are limited to forty (40) hours per 
week and eight (8) hours per day, with exceptions provided for 
managerial and supervisory employees receiving salaries not less 
than $35.00 per week, outside salesmen, outside delivery emploj^ees, 
shipping and receiving crews, watchmen, firemen and engineers, 
employees on emergency repair work and foremen and foreladies 
receiving not less than $25.00 per week and $20.00 per week respec- 
tively. The Code contains safeguarding clauses providing for over- 
time payment to the majority of employees for hours worked in 
excess of the maximum. 

The maximum hours may be exceeded during peak periods, pro- 
vided, that, extra hours worked by employees are compensated for 
at the rate of time and one-third. 

With the exception of firemen and engineers and employees on 
emergency maintenance and emergency repair work, employees are 
limited to a six (6) day working week. 

Watchmen are limited to fifty-six (56) hours per week with a 
minimum rate of pay of $16.00 per week. 

Office employees are limited to forty (40) hours per week with 
a minimum rate of pay of $16.00 per week. 

The Code establishes a minimum wage rate per hour of $0.40 for 
males and $0.35 for females within cities of over 500,000 population 
and their immediate trade area; $0.37i/2 for males and $0,321/2 for 
females within cities of from 100,000 to 500,000 population and their 
immediate trade areas ; $0.35 for males and $0.30 for females within 
cities, towns and villages of less than 100,000 population and their 
immediate trade area. 

Male and female labor in the South are limited to a minimum of 
$0,321/2 per hour and $0.27% per hour respectively. 

Learners not to exceed five percent (5%) may be paid eighty-five 
percent (85%) of the established minimum wage rates. 

Office boys and messengers not to exceed five percent (5%) may 
be paid $2.00 less per week than the established minimum wage rates 
for office employees. 

The Code provides for equitable adjustments. 

Homework in the Industry is prohibited. 

Full compliance with this and the Codes of other industries is 
provided for in Article IX. 

It is estimated that the reduction in working hours of employees 
will result in very little reemployment, but, will result in stabilizing 
present emphiyment within the Industry. 

It is estimated that the minimum wage rates established in the 
Code will result in an increase; of ap[)roximately fifteen percent 
(15%) in the total payroll of the Industry. 



305 



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 

Eossible utilization of the present productive capacity of industries, 
y 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) The Code as approved complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 
Subsection (b) of Section 10 thereof; and that the applicant associa- 
tion is a trade association truly representative of the aforesaid In- 
dustry; and that said association imposes no inequitable restrictions 
on admission to membership therein. 

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

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

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

It is recommended, therefore, that this Code be approved. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
June 9, 1934. 



CODE OF FAIR COMPETITION FOR THE CANDY MANU- 
FACTURING INDUSTRY 

Aeticle I — Purposes 

To effectuate the policies of Title I of the National Industrial Re- 
covery Act the following provisions are established as a Code of 
Fair Competition for the Candy Manufacturing Industry and shall 
be the standards of fair competition for such industry, and shall be 
binding upon every member thereof. 

Article II — Definitions 

Section 1. The 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 Adminis- 
trator for Industrial Recovery. 

Section 2. The term " Candy Manufacturing Industry " as used 
herein shall include the business of manufacturing candy and such 
related branches or subdivisions as may from time to time be in- 
cluded under the provisions of this Code by the President, but shall 
not include a branch or subdivision of the industry for which a Code 
of Fair Competition has been or shall hereafter be approved by the 
President. 

Section 3. The term " candy " as used herein shall include all 
articles defined and/or taxable as candy under the Revenue Act of 
1932 and the Regulations adopted by the Commissioner of the In- 
ternal Revenue with approval of the Secretary of the Treasury 
under such Revenue Act, except (1) products included within the 
definitions of " Cocoa Products " contained in the Definitions and 
Standards for Food Products (Service and Regulatory Announce- 
ments, Food and Drug No. 2, Fourth Revision, August 1933), and 
(2) solid chocolate bars with added fruits and/or nuts. 

Section 4, The terms " member of the industry " and " member " 
as used herein shall include but without limitation any individual, 
partnership, association corporation, or other form of enterprise 
and their resj)ective subsidiaries and/or affiliates engaged in the 
industry either as an employer or on his or its OAvn behalf. 

Section 5. The term " subsidiary " as used herein means any person 
of or over whom a member of the industry has, either directly or 
indirectly, actual or legal control, whether by stock ownersliip or in 
any other manner. 

Sechon 6. The term " affiliate " as used herein means any person 
who has, either directly or indirectly, actual or legal control of or 
over a member of the industry, whether by stock ownership or in 
any other manner, or any subsidiary of such person. 

Section 7. The term "employee " as used herein means any person 
engaged in the industry in any capacity receiving compensation for 

(306) 



307 

his service, irrespective of the nature or method of payment of such 
compensation, except a member of the industry. 

Section 8. The term " employer " as used herein means any person 
by Avhom any such employee is compensated or employed. 

Sectiox 9. The term " watchman " as used herein means any em- 
ployees at least ninety (90) percent of whose workino- time is devoted 
to watching and guarding the premises of his employer. 

Section 10. Tlie term " outside salesman *' as used herein means any 
employee at least eighty (80) percent of whose working time is de- 
voted to outside selling functions and who does not ordinarily deliver, 

Sf;ction 11. The term " outside deliveryman " as used herein means 
any employee who performs delivery functions exclusively and who 
does not sell. 

Section 12. The terui " learner "' as used herein means any em- 
ployee requiring special training and experience in a particular duty 
or occupation not to exceed fifteen (15) days and who has not been 
previousl}^ employed for a learning period within the industry. 

Section 13. The term " buyer " as used herein shall mean and 
include any person who purchases any candy for purposes of resale. 

Section 14. The term " South " as used herein shall mean and 
include North Carolina, South Carolina, Kentucky, Georgia, Florida, 
Alabama, Mississippi, Arkansas, Virginia, Tennessee, Louisiana, 
Oklahoma and Texas. 

Section 15. Population for the purposes of this Code shall be 
determined by reference to the latest Federal Census. 

Section 16. The term "Association " as used herein shall mean 
the National Confectioners Association of the United States, Incor- 
porated. 

Article III — Hours 

Section 1. No employee shall be peruiitted 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 liereinafter otherwise provided. A 
normal work day shall not exceed eight (8) hours. 

(a) Watchmen may be permitted to work a maximum of fifty-six 
hours in any week. 

(b) Outside deliverymen may be permitted to work a maximum 
of forty-eight (48) hours in any week. 

(c) Firemen and engineers may be permitted to work a tolerance 
of ten (10) percent in excess of the maximum hours provided in the 
first paragraph of this Section 1. 

(d) Foremen receiving not less than $25.00 per week and foreladies 
receiving not less than $20.00 per week be permitted to work not 
in excess of one additional hour in any one day in non-productive 
work essential for their res])ective departments, except that such 
foremen and foreladies shall not exceed a ratio of one to every 
thirty (30) factory employees or fraction thereof of each employer. 

(e) Shipping and receiving crews may be permitted to work four 
(4) hours in any week in excess of the maximum weekly hours pro- 
vided in the first paragraph of this Section 1 provided, however, 
that all such employees shall be compensated by at least time and 
one-third for all hours worked in excess of the such prescribed 
maxinuun. 



308 

Section 2. The provisions of this Article shall not apply to per- 
sons employed in managerial and executive capacities who earn not 
less than $35.00 per week, nor to outside salesmen. 

Section 3. The maximum hours fixed in tlie foregoing first para- 
graph of Section 1 shall not apply to employees on emergency main- 
tenance and emergency repair work, provided that such employees 
shall be compensated by at least time and one-third for all hours 
worked in excess of the maximum, and reports shall be made 
monthly to the Code Authority stating the nature of the work and 
the number of hours worked by such employees in excess of the 
maximum. 

Section 4. During peak periods, not to exceed twelve (12) weeks 
in either half of any calendar year and not to exceed a total of 
eighteen (18) weeks in any full calendar year, employees may be 
permitted to work eight (8) hours in excess of the maximum weekly 
hours provided in Section 1 of this Article, but not to exceed a 
maximum of ten (10) hours in any one da}^ provided, however, that 
all such extra hours worked by employees shall be compensated by 
at least time and one-third, and reports shall be made monthly to 
the Code Authority stating the nature of the vv'ork and the hours 
worked by such employees in excess of the maximum. 

Section 5. 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, except that 
such employees may be permitted to work nine (9) hours for one day 
in each week. During inventory periods, not to exceed two weeks 
in each half of the calendar year, office employees may be permitted 
to work a total of nine (9) hours overtime in each week provided 
that such extra hours shall be paid for at the rate of time and 
one-third. 

Section G. No employee shall be permitted to work more than six 
(6) daj^s in any seven (7) day period. This provision shall not 
api:)ly to emploj^ecs on emergency maintenance and emergency re- 
pair work, and firemen and engineers when engaged in work of an 
emergency nature incident to their duties or occupations, provided, 
?iowever, that all such extra hours Avorked by employees shall be 
compensated by at least time and one-third and reports shall be 
made ]nonthly to the Code Authority stating the nature of the work 
and the hours worked by such employees in excess of the maximum. 

Section 7. No employer shall knowingly i)ermit any employee to 
work for any time whicli, when totaled with that already performed 
Avith another employer or ('m})h)yers in this industry, exceeds the 
maximum permitted herein. 

A itTi (Lh I V — Wac; es 

Sechon 1. No employee sliall be i)aid in any pay ])eriod less than 
at the following rates: 

(a) Male employees 40^ per hour, and female em})loyecs 35^ 
per hour, within cities of over 500,000 i)()pulation and their imme- 
diate tratle areas. 

(b) Male employees 37V2^ ]><'•■ lionr, and female employee's 32i/;>^ 
per hour, within cities of "from 100,000 to 500,000 po])u]ati()n and 
their immediate trade areas. 



309 

(c) Male employees 35^ per hour, and female employees 30^ per 
hour, in all other places. 

(d) In the South employees may be paid 5^ per hour less than 
the mininuun wage rates hereinbefore provided, except that no 
male employee shall be paid less than 32i/-^ per hour and no female 
employee shall be paid less than 271/2^ per hour. 

(e) Learners not to exceed five percent (5%) of the total number 
of employees may be paid not less than at the rate of the eighty-five 
percent (85%) of the minimum wages herein provided. 

Section 2. No person employed in accounting, clerical or ofRce 
work shall be paid less than at the rate of $16.00 per week for a 
forty (40) hour week. 

Section 3. Watchmen shall not be paid less than at the rate of 
$16.00 ])er week for a fifty-six (56) hour week. 

Section 4. Office boys and messengers not to exceed five percent 
(5%) of the total number of office employees may be paid $2.00 
per week less than the minimum rates provided in Section 2 of this 
Article. Each employer shall be entitled to at least one office boy 
and messenger thus paid. 

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

Section 6. Equitable adjustments in the })ay schedules of all 
employees above the mininuun shall be made Avithin sixty (60) days 
after the approval of this Code by any member of the industry who 
has not heretofore made such adjustments, and the first monthly re- 
port of wages required to be filed under this Code shall contain all 
wage increases made since May 1, 1933. The Code Authority shall 
determine the fact of equitable adjustments by all members of the 
industry and shall submit its finding to the Administrator for his 
ai)proval. In no event shall hourly rates of pay be reduced as a 
result of the adoption of this Code. 

Section 7. A person Avhose earning capacity is limited because 
of age or physical or mental handicap or other infirmity may be 
employed on light work at a v\'age below the minimum established 
by this Code if the employer obtains from the Authority designated 
by the United States Department of Labor, a certificate authoriz- 
ing such person 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 hini, 
showing the wages paid to, and the maximum hours of work for such 
employee. 

Article V — General Labor Provisions 

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

Section 2. No employee and no one seeking employment shall be 
required as a condition of emploj^ment to join any company union 



310 

or to refrain from joining, organizing or assisting a labor organiza- 
tion of his own choosing. 

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

Sectiox 4. No person under the age of sixteen (16) years shall 
be employed in the industry. 

Section 5. No person under eighteen (18) years of age shall be 
permitted to work at operations or occupations hazardous in nature 
or detrimental to health. The Code Authority shall submit to the 
Administrator within ninety (90) days after the effective date of 
this Code, a list of all such occupations. 

In any State an employer shall be deemed to have complied with 
this provision as to age if he shall have on file a certificate or permit 
duly issued by the Authority in such State empowered to issue 
employment or age certificates or permits showing that the employee 
is of the required age. 

Section 6. Employers shall make payment of all wages in lawful 
currency or by r.egotiable checks or drafts, payable on demand. All 
contracts of employment shall prescribe ])ayment of wages at least 
every tv/o weeks and salaries at least as often as every month. 

Section 7. 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 v/orking conditions, or insurance or fire 
protection, than are imposed by this Code. 

Section 8. Employers shall not change the method of i^ayment 
of employees' compensation or re-classify employees or duties of 
occupations performed by employees or engage in any other subter- 
fuge so as to defeat the purposes of the Act or the provisions of this 
Code. 

Section 9. No employee paid at a rate in excess of the minimum 
shall be discharged and reemployed at a lower rate of pay for the 
purpose of evading the provisions of this Code. 

Section 10. All employers slvall keep posted complete copies of 
the provisions of this Code dealing with hours, wages and ccmditions 
of employment in conspicuous places of easy and continuous access 
to employees. 

Section 11. Each member of the industry shall comply with such 
rules and regulations with regard to the pcsting of notices, bulle- 
tins, and extracts of Code provisions as may be from time to time 
further issued by t])e Administrator. Such notices, bulletins, and 
exti-acts of Code ])r()visions sludl be written in English and such 
(ither language ;is may bo in general use throughout the 
establishment. 

Section 12. Every employer shall make reasonable provision for 
the safety and health of his employees at the place and during the 
hours of their enii)loyment. 

Standards for safety and lienith shall be submitted by the Code 
Authoritv to the Administrator witliin six months after the effective 
• late of til is Code. 

Sk<-tiox 1;'>. Wages shall be exempt from fines and rebates; and 
from charges and deductions, except charges and deductions for 



311 

employees' contributions vohmtarily made by employees or for bene- 
fit funds. No employer shall -withhold wages except upon service of 
legal process or other papers lawfully requiring such withholding. 

Deductions for other purposes than those heretofore stated may be 
made only pursuant to a contract in writing which is kept on file by 
the emplo3^er for six months after the termination of the contract 
and which shall be kept open for the inspection of the Administrator. 

Section 14. Female employees performing substantially the same 
work as male employees, shall receive the same rate of pay as male 
employees, except that where male employees do work customarily 
done by females during hours when females are prevented from 
working by lavv% this section shall not apply. 

Section 15. No member of the industry siiall permit homework. 

Article VI — Administration 

Section 1. There shall forthwitli be constituted a Code Authority 
consisting of ten (10) persons to be selected in accordance with the 
provisions of Schedule A, attached to and made a part of this Code, 
to be apportioned as follows : 

(a) One member of the Code Authority shall be the President 
of tlie National Confectioners' Association. 

(b) Seven members of the Code Authority shall be members of 
the National Confectioners' Association. 

(c) One member of the Code Authority shall be a member of 
the industry but a non-member of the Association. 

(d) One member of the Code Authority shall be a member of 
the industry whose dollar volume of sales of candy of his own manu- 
facture was less than $100,000.00 during the calendar year next 
preceding the date of election of the Code Authority. 

Section 2. In addition to membership as above provided, there 
may l^e not more than three members to be appointed by the Presi- 
dent to serve without vote. 

Section 3. In the event either or both members described in 
sub-sections (c) and (d) of Section 1 of this Article fail to be 
elected, within twenty (20) days after the effective date of this 
Code, the Administrator may, in his discretion, appoint such per- 
son or persons to serve on the Code Authority until the election of 
qualified persons shall render this provision inoperative. 

Section 4. The term of oflice of members of the Code Authority 
first elected as provided in the plan mentioned in Section 1 of this 
Article shall end on May 31, 1935, or until their successors shall 
have been elected, and thereafter the term of office of members of 
the Code Authority shall be for one year or until their successors 
shall be duly elected. 

Section 5. The Association, and each trade or industrial associ- 
ation directly or indirectly participating in the selection or activi- 
ties of the Code Authority, sliall (1) impose no inequitable restric- 
tions on membership, and (2) submit to the Administrator true 
copies of its articles of association, by-laws, regulations, and any 
amendments when made thereto, togethei- witli such other informa- 
tion as to merxibership, organization, and activities as the Admin- 
istrator may deem necessary to effectuate the purposes of the Act. 



312 

Section 6. In order that the Code Authority shall at all times be 
truly representative of the industry and in other respectvS 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 Avith the provisions of the Act, may 
require an appropriate modification of the method of selection of 
the Code Authority. 

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 emploj^ee 
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 anj^one for any action or omission to act under this Code, 
except for his own wilful malfeasance or nonfeasance. 

Section 8. If the Administrator shall at any time determine that 
any action of the CV)de Authority or anj^ agency thereof may be 
unfair or unjust or contrary to the public interest, the Administra- 
tor may require that such action be suspended to afford an oppor- 
tunity for investigation of the merits of such action and further 
consideration by such Code Authority or agency pending final 
action which shall not be effective unless the Administrator ap- 
proves or unless he shall fail to disapprove after thirty days' notice 
to him of intention to proceed Avith such action in its original or 
modified form. 

POWERS AND DUTIES 

Section 9. 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 to 
provide for the compliance of the industry with the ])r()visions of 
the Act. 

(b) To ad<)i:)t by-laws and rules and regulations for its procedure 
and foi- the adiuinistration of this Code. 

(c) To obtain from members of the industry such information 
and reports as are required for the achninistration of the (^ode. In 
addition to information recjuired to be submitted to tlie 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 nuiy designate; provided that 
nothing in this Code sliall I'clieve any member of the ituhistry of any 
existing obligations to furnish i-e))orts to any (iovcrnnient agency. 
No in(li\'idual I'cport sludl be disclosed to any othei- nuMiiber of the 
industry or any other party except to such other (iovei-mnental 
agencies as may be designat<Hl 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 notliing herein shall relieve the Code Authority 
of its duties or responsibilities under this Code and that such trade 



313 

associations and agencies shall at all times be subject to and comply 
with the provisions hereof. 

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

(f j 1. It beino- found necessary to defray the cost of prei)aration 
and to support the Administration of this Code, and to nuiintain the 
standards of fair competition established by this Code and to eifectu- 
ate the policy of the Act, the Code Authority is authorized, subject 
to the ap})roval 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 l)e held in trust for tlie purposes of the Code; 

(b) To submit to the Administrator for his apjn-oval, subject 
to such notice and oi)j)ortuTiity to be heard as he may deem neces- 
sary: (1) An itemized biulget of its estimated expenses for the 
foregoing jjUirposes, and (2) an equitable basis ujwn which the 
funds necessary to suj^port 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 equit- 
able contributions as above set forth, by all such members of the 
industry, and to that end, if necessary, to institute legal proceed- 
ings therefor in its own name. 

2. Only members of the industry complying with the Code and 
contributing to the expenses of its adnunistration, as providetl in 
Section (f) (1) hereof, shall bo entitled to participate in the selec- 
tion of the members of the Code Authority or to receive the benefit 
of its voluntary activities or to nuike use of any emblem or insignia 
of (he National Recovery Administration. 

(g) To co()})erate with the Administratoi- in regulating the use of 
any N.R.A. insignia solely b}^ those member;; of the industry who are 
c()m])lying with this Code. 

(h) To reconmiend to thc> Administ-ator any action or measure 
deemed advisable, including further fair trade practice provisions to 
govern members of tlie industry in their relations with each other 
or v/ith other industries; measures for industrial planning, and 
stabilization of employment; and including modifications of this 
Code vvhicli shall become effective as paj't liereof upon approval by 
the Administrator after sucli notice and liearing as he may specify. 

(i) To appoint a Trade Practice Committee wliich shall meet 
with the Trade Pi-actice Connnittees appointed under such other 
codes as may be related to the industry for the purpose of formidat- 
ing,, fair trade practices to govern the relationships between etn- 
])l()yers undei- this Code and micler such other codes to the end tb.at 
such fair trade practices may be proposed to the Adminisirator as 
amendments to this CVxle and such other codes. 

(j) To provide appro])riate facilities for arbitration, and subject 
to tlie ajiproval of the Administrator, to prescribe rules of ])rocedure 
and rules to effect compliance with awards and determinations. 

(k) To study the problem of im{)roved accounting and cost finding 
for the industry, and to submit to the Administrator its reconnnenda- 



314 

tions for elements of cost to be used by tlie Code Authority to 
administer and enforce the provisions of this Code. Upon the 
approval of the Administrator, such elements of cost and/or cost 
finding shall be binding upon each member of the industry. 

Section 10. Any member of the Industry may submit data tend- 
ing to prove that such member is placed at a competitive disadvan- 
tage with, or is subject to different economic conditions to those of 
other members of the industry ; and the Code Authority may, after 
investigation, recommend to the Administrator that the provisions 
of this Code may be amended or modified, and upon approval by the 
Administrator, after such notice and hearing as he may specify, such 
amended or modified provisions shall become effective for that 
member of the industry. 

Section 11. Whenever any question may arise under this Code as 
to the construction and meaning of any portion thereof, the Code 
Authority may issue such interpretations as may be necessary to 
eft'ectuate the operation of and compliance with this Code and with 
the Act, subject at all times to the approval of the Administrator; 
and such interpretations, when approved by the Administrator, shall 
become operative as a part of this Code. 

Section 12. The Code Authority shall within thirty (30) days 
after the effective date of this Code appoint a Committee from the 
industry to study and promulgate standards of quality, weight, 
dimensions, labeling and sanitation for this industry. This com- 
mittee shall within six months after its appointment report to the 
Code Authority, who in turn shall submit its recommendations to the 
Administrator and after such hearing, if any, as he may designate, 
and upon approval by him such standards shall be made a part of 
this Code and binding upon every member. 

Section 13. Within thirty (30) days following the effective date 
of this Code, each member of the industry shall file, with the Code 
Authority, his name, address and place of business. 

Section 14. No provision of this Code shall deny to any member 
of the industry or to any party in any proceeding the right to appeal 
to the Administrator nor ju'event, at any time, direct ai)])eal to him 
from any determination of the Code Authority. The Code Author- 
ity nuiy, if it chooses, invoke the procedure provided for in this 
Section. 

Ahtk L!j VII — Open Pi;ice Plan 

Section 1. Each member of the industry shall, within ten (10) 
days after the effective date of this Code, file with the Coda Author- 
ity not less than five (5) copies of sucli member's i)ublislie(l current 
price lists covei'ing all candy of his own manufactiii-e, which i)rico 
lists sliall })ec()me effective immediately. FoHowing the filing with 
the (Vxle Authority of tlie first \)vic*' lists, any member of the indus- 
try desiring to change his i)ri('e lists shall file revised j)rice lists with 
the Code Authority, wliich price lists shall become effective not less 
than five (5) days after and exclusive of the date of filing thereof, 
Sundays and holidays excluded, ])rovided, however, that revised 
price lists filed to meet revised lower prices of a competitor whose 
prices are not in violation of this Code may become eflective on the 
same date as the eff'ective date of the competitor's revised prices. 



315 

All filed price lists shall contain the number of count units and net 
weights of packages the contents of which are sold to the consumer 
by count, and shall include all discounts, allowances, terms and con- 
ditions of sale, which shall be uniform for all buyers of the same 
class under like terms and conditions in the same marketing area. 
After the expiration of the said ten (10) days each member shall at 
all times maintain on file with the Code Authority published price 
lists for all candy of his own manufacture and shall adhere strictly 
to the prices and terms of such lists and shall not make any change 
in such price lists except as herein provided/ 

Section 2. All prices and/or terms and other conditions of sale so 
filed with the Code Authority as provided for in this Article shall bs 
open to the inspection of members of the industry and of the Admin- 
istrator. Upon recjuest of any member of the industry and/or a 
direct buyer of the products of the industry the Code Authority shall 
furnish such member and/or direct buyer copies of such prices 
and/or terms and other conditions of sale so filed; provided, how- 
ever, that the Code Authority may refuse such request unless such 
member and/or direct buyer shall pay the cost of such service, as 
established by the Code Authority, subject to the approval of the 
Administrator. 

Article VIII " — Trade Practice Rules 

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

Rule 2. False Billing. — No member of the industry shall know- 
ingly withhold from or insert in any quotation or invoice any state- 
ment that makes it inaccurate in any material particular. 

Rule 3. Inaccurate References to Comfetitovs. — No member of 
the industry shall publish advertising which refers inaccurately in 
any material particular to any competitors or their goods, prices, 
values, credit terms, policies, or services. 

Rule 4. Selling Below Cost. — No member of the industry shall 
sell any candy at a price below cost as determined pursuant to the 
provisions of Article VI, Section 9 (k) ; except that a member of 
the industry may meet the lower prices of a competitor whose prices 
are not in violation of this Code; provided, however, that such 
member shall report immediately to the Code Authority the name 
of such competitor, the sales price of the article or articles of candy 
involved and his own cost thereon. 

Subject to the approval of the Administrator, a member of the 
industry may merchandise a new product below cost, provided, the 
member's estimated cost based on potential production shall have 
been filed with the Code Authority. 

1 See paragraph 2 of order approving this Code. 
* See paragraph 2 of order approving this Code. 
66505° 657-96 34 2 



316 

This provision shall not apply to distressed candy which may 
be sold below the member's cost under any rules and regulations 
which the Code Authority shall prescribe, subject to the approval 
of the Administrator, 

KuLE 5. Destructive Price Cutting. — (a) When the Code Au- 
thority determines that an emergency exists in this industry and 
that the cause thereof is destructive price-cutting such as to render 
ineffective or seriously endanger the maintenace of the provisions 
of this Code, the Code Authority may cause to be determined the 
lowest reasonable cost of the products of this industry, such deter- 
mination to be subject to such notice and hearing as the Adminis- 
trator may require. The Administrator may approve, disapprove, 
or modify the determination. Thereafter, durino- 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 had been determined at such 
prices or upon such terms or conditions of sale that the buyer will 
pay less therefor than the lowest reasonable cost of such products, 
except pursuant to any rules and regulations which the Code Au- 
thority shall prescribe, subject to the approval of the Administrator. 

(b) When it appears that conditions have changed, the Code 
Authority, or the Administrator upon its or his initiative, or upon 
the request of any interested party, shall cause the determination 
to be reviewed. 

Rule 6. Threats of Lawsuits. — No member of the industry shall 
publish or circulate unjustified or unwarranted threats of legal pro- 
ceedings which tend to or have the effect of harassing competitors or 
intimidating their customers. Failure to prosecute in due course 
shall be evidence that any such threat is unwarranted or unjustified. 

Rule 7. Rebates. — (a) No member of the industry shall secretly, 
directly or indirectly, 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. 

(b) Nor shall a member of the industry, directly or indirectly, 
offer or extend to any customer any special service or privilege not 
extended to all customers of the same class, under like terms and 
conditions in the same marketing area, for the purpose of influenc- 
ing a sale, or with tlic effect of influencing a sale. 

(c) This provision shall not be construed to prohibit the free and 
general distribution and installation of articles commonly used for 
advertising except so far as such articles are actually used for rebates 
as hereinabove defined. 

Rule 8. tSclJlng on Com^ifjnment. — No member of this industry 
shall guarantee the sale of any candy or ship goods on consignment 
except under any rules and regulations which the Code Authority 
sliall prescribe, subject to the approval of the Administrator. 

Rule 9. Brlhing PJviplejyees. — No member of the industry shall 
give, or permit to l)e given, directly offer to give, anything of value 
for the ])Urpose of influencing or rcwai'ding the action of any em- 
ployee, agent, or representative of another in relation to the business 
of the employer of such employee, the principal of such agent or the 
represented party, without the knowledge of such employer, principal 



317 

or party, or with the intent or the effect of inducing the purchase or 
refusal to purchase of any candy. 

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 herein- 
above defined. 

Rule 10. Interference with Another^s Contracts. — No member of 
the industry shall wilfully induce or attempt to induce the breach of 
an existing contract between a competitor or customer or source of 
supply; nor shall any such member interfere with or obstruct the 
performance of such contractual duties or services. 

Rule 11. Coercion. — No member of the industry shall require that 
a purchase or lease of any goods be a prerequisite to the purchase 
or lease of any other goods. 

Rule 12. Blacklisting. — No member of the industry shall join or 
participate with other members of the industry who with such 
member constitute a substantial number of members of the industry 
or Avho together control a substantial percent of the business in any 
specific product or products of the industry, in any transaction known 
in law as a blacklist, including any practice or device (such as a 
white list) wlych accomplishes the purpose of a blacklist. 

Rule 13. Premiums. — No member of the industry shall give or 
present free of charge, nor sell at a price below cost, to any buyer, 
any premiums or prizes or similar devices, excepting display devices 
intended for advertising purposes. 

Rule 14. Free Goods. — No member of the industry shall give or 
present to any buyer any goods, free of charge, or at any price below 
said member s purchase price or regular established price as filed 
pursuant to the provisions of Article VII of this Code for products 
of his own manufacture. 

Rule 15. No member of the industry shall knowingly permit his 
agent or sales representative to make any concession prohibited by 
this Article, whether by gifts or allowances of any part of his com- 
pensation, or by any other means whatsoever. 

Rule 16. No member of the industry shall allow discount for cash 
to exceed two (2) percent in any case, and the time in which said 
cash discount shall be allowed shall not exceed fifteen (15) days 
from date of shipment, and all bills paid after expiration of such 
member's discount period shall be net. However, on water freight 
shipments from the Atlantic Coast to the Pacific Coast or vice versa 
an additional fifteen (15) days may be allowed, but provided further 
that the invoice shall clearly state the date of the invoice and the 
actual date of the shipment and include the words "Via Water 
Freight." 

Rule 17.— Section 1. No member of the industry shall grant more 
favorable terms for returned candy than as follows : for reasons other 
than breach of warranty when candy is returned by a buyer to a 
member or claim is made by a buyer that the candy is unsalable 
because of defects in package, quality or appearance, and the cause 
of same is not due to manufacturing defects or other fault of such 
member, the following rules shall apply : 



(a) No member shall grant or allow any credit or other allow- 
ances or replace such cancly in excess of fifty (50) percent of the 
member's invoice price of such candy. 

(b) No member shall grant or allow any credit or other allowance 
for any candy returned by a buyer to said member or replace such 
candy ,\mless the buyer was authorized in writing by the member 
to make such return. 

(c) No member shall grant or allow any credit or other allowance 
for any candy not returned to the member by the buyer or replace 
such candy. 

(d) Transportation charges paid by the member on any candy 
returned by the buyer to the member shall be deducted by the mem- 
ber from 'any credit, allowance, or replacement granted by the 
member to the trade buyer. 

Section 2. When the candy is returned by a buyer to a member, 
or claim is made for reasons other than breach of warranty, that 
the candy is unsalable because of defects in package, quality, or 
appearance, and the cause of same is due to manufacturing defects 
or other fault of the member, the following rules shall apply: 

(a) No member shall grant or allow any credit or other allow- 
ance or replace such candy unless claim is made therefor by the 
buyer within fifteen (15) days after receipt of such candy by the 
buyer and the member of the industry shall bear the necessary 
transportation costs incident to such return. 

(b) No member shall grant or allow an}^ c?redit or other allowance 
for any candy not returned to the member by the buyer or replace 
such candy. 

(c) No credit or other allowance or replacement shall be granted 
by the member to a buyer, beyond six (6) months from shipment 
of the candy by the member to the buyer. 

KuLE 18. — No member of the industry shall repack candy for any 
buyer. 

Rule 19. No member of the industry shall sell or distribute the 
type of merchandise commonly referred to as " break and take ", 
" picks ", or " draws ", or merchandise of a like character, serving 
the same purpose. 

Rule 20. No member of the industry shall pay a buyer for a 
special advertising or other distribution service by such a buyer, (1) 
except in pursuance of a written contract made in good faith and 
explicitly defining the service to be rendered and the payment for 
it; and (2) unless such 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 
(3) unless such payment is equally available to all buyers in the same 
competitive market under like conditions; and (4) unless a copy of 
each such contract is filed with the Code Authority and is retained on 
file for a period of one year. 

Article IX — Compliance 

To further eflFectuate the policies of Title I of the Act: 
1. No member of the industry shall purchase any goods, wares or 
merchandise (hereinafter called goods), or services, used in the indus- 



319 

try, which are manufactured or sold, in whole or in part, b}^ a vendor 
who does not represent that he is in full compliance with the approved 
code of fair competition, ao;reement or license (if any) applicable 
to the industry of such vendor; provided that any member of the 
industry, exercising due diligence in any such purchase of goods or 
services to comply with the provisions hereof, shall not be deemed in 
violation hereof. Delivery of a certificate of such vendor that he or 
it is complying in every particular with the code, agreement or 
license apiDlicable to such vendor, the display of proper N.K.A. insig- 
nia, or the publication in a newspaper or periodical of general cir- 
culation of such certificate of compliance or insignia shall constitute 
a good and sufficient representation of compliance hereunder. 

2. Upon application, or upon his own motion, the Administrator 
may grant exceptions or exemptions from provisions hereof if it shall 
appear : 

(a) That the vendor of any such goods or services is not subject to 
a code of Fair Competition, agreement or license approved under the 
Act; or 

(b) That compliance herewith would create undue hardship or in- 
justice or would not tend to effectuate the purposes of this Code 
or the policy of the Act. 

3. No member of the industrj^ shall make or cause to be presented 
or published any such representation which shall be false in any 
material particular. 

Article X — Modification 

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

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

Article XI — Monopolies, Etc. 

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

Article XII — Price Increases 

Whereas the policy of the Act to increase real purchasing power 
will be made more difficult of consummation if prices of goods and 
services increase as rapidly as wages, it is recognized that price 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 increases to the seller's costs. 



320 

AeTICLB Xm — Re^TEW by ADiirNTSTRATOB 

The operation of this Code may be reviewed by the Administrator 
not later than September 15, 1934, to ascertain whether the pro- 
visions tliereof have effectuated or will effectuate the policy and 
purposes of the National Industrial Recovery Act. This Article 
shall not at any time be so construed or interpreted as to prevent 
the Administrator from exercising any of the powers expressly 
reserved by Article X of this Code. 

Article XIY — Effecti^-e Date 

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

Approved Code No. 463. 
Registry No. 114-19. 

SCHEDULE A 

Pabt I 

Section 1. To render effective the provisions of Article YI of this Code 
election of members of the Code Authoritj- shall be in accordance with the 
provisions of this Schedule A. Members of the industry exercising the right 
of nomination and election provided for herein are hereinafter referred to as 
follows : 

Section 2. Any member of the industry who is a member of the National 
Confectioners' Association shall be entitled to nominate and/or vote for the 
election of the members of the Code Authority provided for under sub-section 

( b ) of Section 1 of Article YI of the Code, is hereinafter designated as a Class 
"A"' Member. 

Section 3. Any member of the industry who is a non-member of the National 
Confectioners' Association shall be entitled to nominate and/or vote for the 
election of the member of the Code Authority provided for under sub-section 

(c) of Section 1 of Article YI of the Code, is hereinafter designated as a 
Class " B " Memlier. 

Section 4. Any member of the industry whose dollar volume of sales of 
candy of his own manufacture was less than $100,000 during the calendar year 
next preceding the date of election of the Code Authority shall be entitled to 
nominate and/or vote for the election of the member of the Code Authority 
provided for under sub-.section (d) of Seclion 1 of Article YI of the Code, is 
designated as a Class " C " Member. 

Taet II 

Section 1. The Secretary of the Association shall mail to each known mem- 
ber of the industry a blank for nomination. Such nomination blank shall con- 
tain a notice of nomination which notice shall specifically state the rules, 
regu'.atioiis and conditions governing nominations, and the further specific 
statement that nominations may be made either by mail ballot, in person, 
or l)y proxy. 

Skction 2. Each Class "A" Member may place in nomination the name of 
not more than one member of the same cla.ss, for election, in accordance with 
tlie i)rovisioiis of I'art III lierein, to menil)ership on the Co<le Authority for 
one of the seven (7) voting districts described in Part lY herein. 

Tbe princijial place of business of the nominating member and the member 
80 nominated shall lie located within the same voting district. 

.^'EC-TifiN 3. Each Cla.s.«i " B " Member may place in nomination the name of 
not more than one member of tlie same cla.s.s, for election, in accordance with 
the provisions of Part III herein, to membership on the Code Authority. 



321 

Section 4. Each Class " C " Member may place in nomination the name of 
not more than one member of the same class, for election, in accordance with 
the provisions of Part III herein, to membership on the Code Authority. 

Section 5. No member of the industry shall be eligible to nominate in more 
than one class. 

Section 6. Nominations made in accordance with the provisions of this 
Part II shall be mailed or delivered to the Secretary of the Association or to 
such independent outside agency as he may designate. 

Part III 

Section 1. At l?ast five (5) days prior to the date of election the Secretary 
of the Association, or such independent outside agency as he may designate,, 
shall mail to each known member of the industry a notice of election and a 
ballot. 

The notice of election shall contain the rules, regulations and conditions 
governing the election. 

The ballot, which shall accompany the notice of election, shall contain a 
list of the nominees to be voted upon and the specific statement that voting 
may be either by mail baUot, in person, or by proxy. 

Section 2. Each member of the industry entitled to vote as a Class "A" 
Member may vote for not more than one member of the same class, for election, 
to membership on the Code Authority for one of tlie voting districts provided 
in Part IV herein. 

The principal place of business of the voting member and the member so voted 
upon shall be located within the same voting district. 

Section 3. Each member of the industry entitled to vote as a Class " B " 
Member may vot? for not more tlian one member of the same class for election 
to membership on the Code Authority. 

Section 4. Each member of the industry entitled to vote as a Class " C " 
Member may vote for not more than one member of the same class for election 
to membership on the Code Authority. 

Section 5. No member of the industry shall be eligible to vote in more than 
one class. 

Section 6. All ballots cast in accordance with the provisions of this Part III 
shall be mailed or delivered to th^ Secretary of the Association or to such 
independent outside agency as he may designate, and the Secretary of the 
Association or the independent outside agency so designated by him shall forth- 
with certify to the Administrator the names of such members of tlie industry 
as shall have been elected to serve on the Code Authority in accordance with the 
provisions of Parts I. II. Ill and IV herein. 

Part IV 

Section 1. For the purpose of nominating and electing a Glass "A" Member 
of the Code Authority, as provided herein, the forty-eight (48) States and the 
District of Columbia shall be divided into seven (7) districts in the following 
manner : 

District 1. — States of Maine, New Hampshire, Vermont, Massachusetts, Rhode 
Island and Connecticut. 

District 2.— The State of New York and the State of New Jersey. 

District S. — The District of Columbia and the States of Delaware, Maryland,. 
Pennsylvania, West Virginia, Ohio. Michigan and Indiana. 

District .'/. — The States of Illinois and Wisconsin. 

District 5. — The States of Minnesota, North Dakota, South Dakota, Nebraska, 
Kansas. Missouri, and Iowa. 

District 6. The States of Montana, Wyoming, Colorado, Arizona, Utah, Wash- 
ington, Oregon, Nevada, California, and New Mexico and Idaho. 

District 7. The States of Texas, Louisiana, Mississippi, Alabama, Florida,. 
Georgia, Soutli Carolina, North Carolina, Virginia, Kentucky, Tennessee, Okla- 
homa, and Arkansas. 

o 



AMENDMENTS 



Approved Code No. 347 — Amendment No. 3 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MACHINERY AND ALLIED PRODUCTS INDUSTRY 

As Approved on May 28, 1934 



OEDER 



Amendment of the Code of Fair Competition for the Machinery 
AND Allied Products Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an Amend- 
ment to the Code of Fair Competition for the Machinery and Allied 
Products Industry, and hearing having been duly held thereon, and 
the annexed report on said Amendment, containing findings with 
respect thereto, having been made and directed to the President: 

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 Amendment and the Code as 
constituted after being amended comply in all respects with the 
pertinent provisions and will promote the policy and purposes of 
said Title of said Act, and do hereby order that said Amendment be 
and it is hereby approved, and that the previous approval of said 
Code is hereby modified to include an approval of said Code in its 
entirety as amended; on condition that the continued participation 
of the Electric Overhead Crane Institute in the activities of the 
Code as amended be conditioned upon its amending its Constitution 
and By-Laws to the satisfaction of the Administrator within thirty 
(30) daj'-s from the effective date of this Amendment. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
A. R. Glancy, 

Division Administrator. 

Washington, D.C, 

May 28, 19S4. 

(323) 



EEPOET TO THE PRESIDENT 

The President, \ 

The 'White House. 

Sir : This is a report on the amendment to the Code of Fair Com- 
petition for the Machinery and Allied Products Industry and the 
hearing conducted thereon in Washington, April 27, 1934. The 
amendment, which is attached, was presented by the temporary Basic 
Code Authority. 

The Code for the Machinery and Allied Products Industry pro- 
vides in Article VII, Section (a) that; upon request of any trade 
association, organization, or group of employers representative of 
machinery or allied products not specifically defined in Article II 
thereof, the Basic Code Authority may make application to the 
Administrator for amendment of the Code of Fair Competition for 
Machinery and Allied Products Industry with respect to the defi- 
nition of the Industry by addition thereto of a specific definition 
covering such products and, upon approval by the Administrator of 
said amendment, the employers concerned therewith shall become 
members of the Industry, and shall be organized by Basic Code 
Authority into a Subdivision, with a Code Authority to be created 
as provided in Article VI of the Code of Fair Competition for the 
Machinery and Allied Products Industry. Concurrently with appli- 
cation for amendment to definition, such group of employers con- 
cerned therewith shall make application to the Administrator for 
a Supplemental Code as provided in Article I of the Code of Fair 
Competition for the Machinery and Allied Products Industry (ap- 
plicable solely to such Subdivision and dealing with subjects not 
provided for by the Code of Fair Competition for the Machinery 
and Allied Products Industry). Upon approval by the Adminis- 
trator such Supplemental Code shall be binding on such Subdivision 
and upon each employer therein. 

This amendment pi'ovides that Article II of the Code of Fair 
Competition for the Machinery and Allied Products Industry be 
amended to include the definitions of the following Subdivisions: 

1. Chemical Engineering Equipment Subdivision 

2. Electric Overhead Crane Subdivision 

3. Locomotive Appliance Subdivision 

Supplemental Codes have been filed for each of these Subdivi- 
sions and public hearings have been conducted thereon. The eco- 
nomic effect of including these Subdivisions in this Code will be 
shown when the respective Supplemental Codes are submitted for 
approval. 

FINDINGS 

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



325 

I find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and pm'poses of Title I of 
the National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and main- 
taining united action of labor and management under adequate 
governmental sanction and supervision, by eliminating unfair com- 
petitive practices, by promoting the fTillest 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 prod- 
ucts through increasing purchasing power, by reducing and relieving 
unemployment, by improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and 
Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- 
said amendment on behalf of the Industry as a whole. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, therefore, I have approved this amendment on 
condition that the continued participation of the Electric Overhead 
Crane Institute in the activities of the Code as amended be condi- 
tioned upon its amending its Constitution and By-Laws to the satis- 
faction of the Administrator within thirty (30) days from the 
effective date of this amendment. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
Mat 28, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

Add the following paragraphs after paragraph 39, " Woodworking 
Machinery Subdivision " : 

40. '• Ghemical Engineering Equipment Subdivision " means the 
manufacture, design, engineering, erection and/or licensing of 
chemical engineering equipment, together with its accessories and 
necessary housing, for sale, and/or the licensing of chemical engi- 
neering processes for use in connection with specified chemical engi- 
neering equipment, and shall be construed to include all persons 
engaged in such manufacture, design, engineering and/or erection 
for sale and/or such licensing; provided, however, that all specific 
equipment covered by other codes heretofore or hereafter approved 
under the Act is excluded to the extent of its coverage under such 
codes. 

41. " Electric Overhead Crane Subdivision " means the designing 
and manufacturing for sale of standard type electric overhead trav- 
eling cranes which are more specifically described as follows : Stand- 
ard type electric overhead crane means the standard type overhead, 
double girder, one or more motor electric crane, including electric 
gantry cranes, both traveling and stationary, all of five ton lifting 
capacity, or more; and including standard grabbucket cranes of 
three ton lifting capacity, or more; all as commonly installed for 
overhead transportation service inside and outside of buildings and 
for operations on elevated or ground runways. 

42. " Locomotive Appliance Subdivision " means the manufacture 
and/or sale of appliances, devices or attachments and replacement 
parts thereof specially designed and manufactured for use in the 
construction or repairing of locomotives as used for tractive power; 
provided, however, that such appliances, devices, and/or attachments 
and replacement parts thereof when manufactured by builders of 
the aforesaid locomotives or when within the scope of another code 
are not included in this code. 

Approved Code No. 347 — Amendment No. 3. 
Registry No. 1399-65. 

(326) 



Approved Code No. 11 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

IRON AND STEEL INDUSTRY 

As Approved on May 30, 1934 

BY 

PRESIDENT ROOSEVELT 



EXECUTIVE ORDER 

Revised Code of Fair Competition of the Iron and Steel, Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act approved June 16, 1933, for my approval of certain 
amendments to the Code of Fair Competition of the Iron and Steel 
Industry as approved on August 19, 1933, a copy of which amend- 
ments are hereto attached as Exhibit A, and the Administrator, hav- 
ing rendered his report showing that said amendments have been 
proposed, adopted and submitted for my approval, pursuant to the 
provisions of Section 1 of Article XII of said Code and having 
recommended that said application be granted ; 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 
United States, pursuant to the authority vested in me by Title I of 
said Act, and otherwise, do adopt and approve the report, recom- 
mendations and findings of the Administrator and do hereby order 
that said amendments to said Code be, and they hereby are, approved 
and that said Code as amended by said amendments, a copy of which 
is hereto attached as Exhibit B, be and it hereby is approved, said 
revised Code incorporating said amendments to become effective on 
June 11, 1934, prior to which effective date the Code of Fair Compe- 
tition approved August 19, 1933, shall continue in full force and 
effect. 

In connection with the foregoing approval I desire to make two 
statements : 

1. Conditions of economic emergency make necessary the retention 
in modified form of the multiple basing point system adopted in the 
original code and effective in the industry for many years. But re- 
visions made in this Code, increasing substantially the number of 
basing points, and modifications in practice under the Code, while 
alleviating some of the inequities in the existing system, illustrate the 

(327) 



328 

desirability of working toward the end of having prices quoted on 
the basis of areas of production and the eventual establishment of 
basing points coincident with all such areas, as well as the elimina- 
tion of artificial transportation charges in price quotations. There- 
fore, I have directed the Federal Trade Commission and the National 
Recovery Administration to study further and jointly the operation 
of the basing point system and its effect on prices to consumers, and 
any effects of the existing system in either permitting or encourag- 
ing price fixing, or providing unfair competitive advantages for 
producers, or disadvantages for consumers not based on actual causes. 
I have requested that the results of this study be reported to me 
within six months, together with any recommendations for revisions 
of the Code, in accordance with the conclusions reached. 

2. In order to insure the free exercise of the rights of employees 
under the provisions of Section 7 of this Act and of Article IV of 
this Code, I will undertake promptly to provide, as the occasion may 
demand, for the election by employees in each industrial unit of- 
representatives of their own choosing for the purpose of collective 
bargaining and other mutual aid and protection, under the super- 
vision of an appropriate governmental agency and in accordance 
with suitable rules and regulations. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 
Hugh S. Johnson, 

A dTTiinistrator. 

The White House, 

May 30, 1031^. 



LETTER OF TRANSMITTAL 

The President, 

The 'White House. 

Sir: The revisions of the Steel Code which have been agreed to 
by the Code Authority include (1) revisions resulting from the 
insistence of representations of N.R.A. that changes should be made 
to meet justifiable complaints and criticisms of the Code ; and (2) 
revisions proposed by the Code Authority to improve the workability 
of the Code and the" fair application of its requirements. 

We will summarize the more important changes: 

PRICE PROVISIOXS 

1. The previous power of the Code Authority to set aside an 
" unfair " price filing and to fix a "' fair base price "' is annulled by 
striking out Section 5 of Schedule E of the Code approved August 
19, 1933. There is no minimum price or '* cost recovery " provision 
now left in the Code. 

2. The basing point system has been revised (Schedule F) by 
adding new basing points to take care of outstanding complaints 
(such as Worcester, Mass., Duluth, Minn., Corpus Christi, Tex,, 
Stockton, Cal.). Criticisms of basing point prices are also met in 
part by providing for modification of transportation charges and 
price filing requirements, as hereafter shown. 

3. All-rail transportation charges, which are included in delivered 
prices quoted under the Code, may be reduced when delivery is by 
other means (such as water or motor transportation) at rates ap- 
proved by the Code Authority as " equitable and necessary in order 
that competitive opportunity to producers and consumers shall be 
maintained " — (Schedule E, Sec. 4), subject to review of such action 
by the Administrator. (Art. XI, Sec. 6.) By a further revision of 
the Code sales below a published base price or delivered frice may 
be authorized by the Code Authority — also subject to review by the 
Administrator. Lender these revised provisions various complaints 
of producers and consumers are already in process of adjustment. 

4. The price filing provision has been revised to permit any pro- 
ducer to meet a lower price quoted by a competitor without waiting 
ten days (Schedule E. Section 2). Under the Code also any pro- 
ducer can quote as his price the lowest base price filed by any 
competitor at a basing point where he himself does not file. (Sched- 
ule E, Sec. 3.) 

LABOR PROVISIONS 

1. The 8 hour day is now established unconditionally for the 
entire industry by an amendment of Art. IV. The average 40 hour 
week and maximum 6 day week is retained. 

(329) 



330 

2. Pieceworkers are guaranteed the minimum rates of pay for 
hourly workers by an amendment of Art. IV, Sec. 5. 

3. Wage Districts have been added to provide minimum wages 
for areas of employment not previously included. 

ADMINISTRATION 

The Administrator is empowered (by a new provision) to suspend 
and disapprove any action by the Code x\uthority which constitutes 
in his opinion a modification of the Code or exemption of anyone 
from its provisions. (Art. XI, Sec. 6.) 

UNFAIR PRACTICES 

Three new definitions of unfair practice are added to Schedule H. 

1. Orders cannot be sought by promising to file new prices subse- 
quently — thereby engaging in secret price-cutting. (Clause M.) 

2. Products not properly classified as " scrap " cannot be sold as 
"scrap." (Clause N.) 

3. The use of coercion or coercive means to induce a producer to 
withdraw or to change his base price, is forbidden. (Clause O.) 

CONTIiACTUAL FREEDOM 

1. A new provision in Schedule E, Sec. 8 permits making a contract 
calling for delivery beyond the end of the next calendar quarter year 
if products are required for an identified structure, railroad cars and 
locomotives, or a definite project of federal, state, county or munici- 
pal government. (The limitation against long term contracts is 
written to prevent speculation and the exception is made in public 
and private contracts which cannot be used for speculative buying.) 

2. Under an amendment of Schedule E, Sec. 3, prices fixed in 
contracts to be fulfilled in the next succeeding quarter may be reduced 
if lower prices are subsequently filed — thus allowing producers to 
give their contractual customers the benefit of general declining 
prices or lower prices made by competitors. 

SMALL ENTERPRISE REPRESENTATION 

A revision of Article VI, Section 5 reduces the expense of the 
code for small producers by apportioning the total expense accord- 
ing to the invoiced value of delivered products during the preceding 
calendar year. Each member of the Code retains at least one vote 
regardless of the invoiced value of his products, but the code expense 
of small producers may be materially reduced. 

TERMINATION CLAUSE 

The termination clause (Article XII, Section 2) is revised to 
provided simply that the Code may be terminated at any time by 
action of the President, or by a vote of seventy-five percent of the 
members of the Code. 



331 

RESULTS or THE EXPERIMENTAL PERIOD 

The Code was originally approved for a trial period of 90 days. 
Upon the reports made to the President at the end of that period 
and the recommendation of the Administrator, the trial period was 
extended by the President to May 31, 1934, thus giving a total trial 
period to date of a little over nine months. 

During this trial period the volume of complaints from producers 
in the industry, or users of its products has been very small when 
consideration is given to the magnitude of the industry. So far as 
members of the Code are concerned its operation and administra- 
tion have given general satisfaction. Many complaints from users 
of code products have been adjusted by action of the Code Author- 
ity, exercising its discretionary powers under the Code. Provision 
is made in the revised Code for the adjustment of outstanding com- 
plaints, either in the revisions, or in action authorized under the 
Code. There have been a certain number of complaints which have 
not been adjusted and some which may be difficult of adjustment. 
But the major criticisms of the Code are not those of specific injury 
of individuals or individual enterprises, but largely theoretical criti- 
cisms of the price provisions of the Code, on the ground that they 
might operate in aid of monopolistic practices. 

The economic issues involved in these criticisms are fundamental 
and far reaching. It is doubtful Avhether any well integrated indus- 
try can operate to protect the stability of its operations and to main- 
tain, without violent fluctuation, employment and wage standards 
without being subjected to the criticism that any such effective self- 
government might bring about what might be wrongly called monop- 
olistic practices. For example, the multiple basing point system is 
designed to maintain existing areas of production and channels of 
distribution and to prevent violent dislocations proceeding from such 
unrestrained competition as has resulted in the past all too frequently 
in increasing concentration of business in the hands of large pro- 
ducers, with violent fluctuations in prices and wages in a ruthless 
struggle to survive. 

This industry is highly competitive and it is a fact that in recent 
years the smaller enterprises in the industry have steadily increased 
their proportionate production at the expense of the larger enter- 
prises. This is not a monopolistic trend. On the other hand, con- 
sumers may claim that the integration of the industry and methods 
of fair competition adopted do not provide for the consumers the 
transient benefits of unrestrained cut throat competition. Represen- 
tatives of the N.R.A. believe that it would be in the public interest 
to provide for the joint study of the operation of the basing point 
system by representatives of the N.R.A. and the Federal Trade Com- 
mission, in conjunction with representatives of the industry, for the 
purpose of determining to what extent and in what manner the prac- 
tices of the industry, particularly in regard to the multiple basing 
point system, may be improved so as to preserve, for the benefit of 
all concerned, the stabilizing effect of the existing system and at the 
same time to insure full opportunity, through fair competition, to 
pass on to consumers the benefits of increasing productive efficiency, 
while continuing to improve labor and providing greater stability of 
employment. 



332 

The labor provisions of the Code have operated to produce great 
benefits for the wage earners, but have also given rise to conflicts con- 
cerning the right of labor organization and collective bargaining, 
which call imperatively for better assurances than are now provided, 
that employees may exercise the rights provided in Section 7 (a) 
of the National Industrial Recovery Act. 

The rights of labor organization are clearly defined in the Act and 
in the Code, but the most serious complaints which have been re- 
ceived during the trial period have been the complaints that exercises 
of these rights has been restrained in violation of the law. It cannot 
be suggested, however, that labor would benefit in the present situa- 
tion by a cancellation of the Code. Indeed the complaint is not 
against the provisions of the Code, but against disregard for these 
provisions. 

LABOR BENEFITS UNDER THE CODE 

The benefits derived by labor from this Code may be summarized 
in the following comparison of employment and earnings in June, 
1933 and April,^ 1934 : 





June 1933 


April 1934 


Change for April 1934 as compared 
with June 1933 


Grand total all employees: 
Total number employees 


338, 146 

$30, 560, 761 

39.7 

53.0(4 

57, 555, 359 

305,329 

$24, 441, 054 

39.4 

47.30 

$18. 64 

51, 645, 321 


$45, 47i; 878 

34.4 

71.40 

63, 690, 525 

392, 069 

$36, 778, 026 

33.7 

64.80 

$21.84 

56, 723, 813 


Increase 92,940, or 27.4%. 


Total wages and salaries 


Increase $14,911,117, or 48.7%. 


Average earnings per hour 


Increase 18.40, or 34.7%. 


Total hours worked 

Wage earners (employees receiving 
hourly, tonnage, or piecework rates): 
Number of wage earners 


Increase 10.6%. 
Increase 86,830, or 28.4%. 


Total wages 


Increase $12,336,972, or 50.4%. 






Average earnings per week 


Increase $3.20, or 17%. 


Total hours worked 


Increase 9.8%. 



By Comparing the foregoing figures with the year 1929 it appears 
that, in April 1934, although the industry was then operating at 
less than 75% of its 1929 operations, it was employing nearly as 
many employees as the average for the year 1929. 

CONSUMERS INTERESTS UNDER THE CODE 

A comparison of the first six months of 1933 with the last six 
months of 1933 shows that total income of 190 companies increased 
by approximately $54,000,000 while the total payroll increase was 
approximately $108,000,000. The consumers therefore bore only 
one-half on the burden of payroll increases. 



SMALL ENTERPRISES UNDER THE CODE 

Reports for 1933 show that 57 companies producing steel ingots 
(the large, integrated companies) increased payrolls $100,000,000; 
increased income only $44,000,000; and show^ed a net loss of nearly 
$65,000,000; while 133 smaller, non-integrated companies increased 
payrolls $8,000,000,000; increased income $10,000,000 and showed a 



333 

net profit of over $5,000,000. The larger companies in the aggregate 
lost % of 1% on their reported investment and the smaller com- 
panies earned over 1%% on their investment. 

It is evident in the light of these figures that consumers were not 
being exploited and that small enterprises were not being oppressed 
under the Code. It is also clear beyond question that emploj'ment 
and wage payments have increased remarkably under the Code, and 
the standard of living of the average worker has been substantially 
improved. 

CONCLUSION 

It is our recommendation that a continuance of the Code, as 
revised in accordance with the amendments approved by the NRA 
and agreed to by the Code Authority, is desirable, with the distinct 
understanding that we believe the Code can be and should be sub- 
ject to further revision and that the members of the industry should 
cooperate with the representatives of the government in bringing 
about full and unquestioned compliance with the requirements of 
the law and the Code which protect the rights of employees in self- 
organization and collective bargaining. 

Hugh S. Johnson, 

Administratoi'. 
K. M. Simpson, 
Donald R. Richberg, 
May 29, 1934. 



CODE OF FAIR COMPETITION OF THE IRON AND STEEL 
INDUSTRY 

AUTKJLE I 1 )k1' IN ITIONS 

Wherever used in this Code or in any schedule appertaining hereto 
the terms hereinafter in this Article and in Schedule E annexed 
hereto delined sliall, unless the context shall otherwise clearly indi- 
cate, have the res])ective meanings hereinafter in this Article and 
in such Schedide E set forth. The definition of any such term in 
the singular shall apply to the use of such term in the plural and 
vice versa. 

Section 1. The term " the United States " means and includes all 
of the territory of the United States of America on the North Amer- 
ican continent. 

Section 2. The term " the President " means the President of the 
United States of America. 

Section 3. The term " products " means the iron or steel products 
which are generally named in Schedule F annexed hereto as at the 
time in ellrct and standard Tee rails of more than 60 pounds per 
yard and angle l)ars and rail joints therefor, or any of such products. 

Section 4. The tei-m " the Industry " means and includes the busi- 
ness of producing in the United States and selling products, or any 
of them. 

Section 5. The term " member of the Industry " means and in- 
cludes any person, firm, association or corporation operating a plant 
or plants in the United States for the production of products, or 
any of them. 

Section C. The term " the Code " means and includes this Code 
and all schedules annexed hereto as originally approved by the 
]*i'esident and all ainenihuents hereof and thereof made as herein- 
after in Artich; XII ])rovideil. 

Section 7. The term " member of the Code " means any meuiber 
of the Iiulustry who shall have become a member of the Code as 
hereinafter in Section IJ of Arti(;le III ]:)rovidcd. 

Section 8. The term " the Institute " means American Iron and 
Steel Institute, a New York membership cori)oration. 

Sec'iton 9. 'Y\m term " the lioard of Directors " means the Poard 
of Directors (as from time to (inu; constituted) of the Institutxj. 

Sr.( "iioN 10. The term 'Mhc Secretary" means the secretary of 
th(! Institute at the time in oflice. 

Se('Tion 11. The term ''the Ti'easurer " means the treasurer of 
the Institute at the time in oflice. 

Section 12. The term "unfair ])ractice " means and includes any 
act described as an unfair practice in Schedule II annexed hereto. 

Se(;tion 13. Wiierever used in the: C^ode with reference to the 
Industry or any member of th(^ Iiulustry or any member of the 
Code, unless tlie ('(nitext shall otherwise clcai-ly indicate, 

(.-.••tl) 



335 

(a) the term " plant " means only a plant for the production of 
one or more products in the Industry; 

(h) the term " prices " includes only prices for products produced 
in the Industry; 

(c) the term " wages " includes only wages for labor performed 
in the Industry; 

(d) the term "labor" means only labor performed in the In- 
dustry ; 

(e) the term " hours of labor " or " hours of work " includes only 
hours of labor or hours of work in the Industry; and 

(/') the term "employee" means only an employee in the In- 
dustry. 

Section 14. The term " the National Industrial Kecovery Act " 
means the National Industrial Recovery Act as approved by the 
President June IG, 1933. 

Section 15. Tlie t(;i'm "the effective date of the Code" means 
the date on which the Code shall have been approved by the Presi- 
dent pursuant to the National Industrial Recovery Act. 

Section 1G. The term "the Administrator" means the Admin- 
istrator appointed by the President under the National Industrial 
Recovery Act and at the time in oflice. 

Section 17. The term " the Administration " means the agency 
established pursuant to the provisions of Section 2 of the National 
Industrial Recovery Act. 

Article II — Purpose of the Code 

Section 1. The Code is adopted pursuant to Title I of the Na- 
tional Industrial Recovery Act. 

Section 2. The i)urpose of the Code is to effectuate the policy of 
Title I of the National Industrial Recovery Act in so far as it is 
applicable to the Industry. 

Article III — Memijershii* in the Code 

Section 1. It is of the essence of the Code that all members of 
the Industry which shall comply with the provisions of the Code 
shall be entitled to j^articipatc in its benefits upon the terms and 
conditions set forth in the Code. 

Section 2. Any member of the Industry is eligible for member- 
ship in the Code. 

Section 3. Any member of the Industry desiring to become a mem- 
ber of the Code may do so by signing and delivering to the Secretary 
a letter substantially in the form set forth in Schedule A annexed 
hereto. 

Section 4. The rules and regulations in respect of meetings of 
members of the Code are set forth in Schedule B annexed hereto. 

Article IV — Hours of Labor, Raiics of Pay and Other Condiitons 
OF Employment 

Sec'iton 1. Pursuant to subsection (a) of Section 7 of tlic Na- 
tional Industrial Recovery Act and so long as the Code shall be in 
effect, the Code shall be subject to the following conditions : 



336 

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

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

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

Section 2, Since the beginning of the present depression and the 
consequent reduction in the total number of hours of work available 
in the Industry, its members have made every effort to distribute, 
and with a remarkable degree of success have distributed, the hours 
of work available in their plants so as to give employment to the 
maximum number of employees. It is the intention of the Industry 
to continue that policy in so far as practicable, to the end that the 
policy of Title I of the National Industrial Recovery Act may be 
effectuated, and that work in the Industry shall in so far as prac- 
ticable be distributed so as to provide employment for the employees 
normally attached to the Industry, The basic processes in the In- 
dustry are of a continuous character and they cannot be changed 
in this respect without serious adverse effect upon production and 
employment. As demand for the products of the Industry and, 
therefore, for labor shall increase, hours of labor for employees in 
the Industry must necessarily increase; but, except in the case of 
executives, those employed in supervisory capacities and in technical 
work and their respective staffs and those employed in emergency 
work, in so far as practicable and so long as employees qualified 
for the work required shall be available in the respective locali- 
ties where such work shall be required and having due regard for 
the varying demands of the consuming and processing industries 
for the respective products, none of the members of the Code shall 
cause or permit any employee to work at an average of more than 40 
hours per week in any six months period or to work more than 
48 hours or more than 6 days in any one week or more than 8 hours 
in any one day. For the purposes of this Section 2 the first six 
months period for each employee in the employ of any member of 
the Code at the effective date thereof shall begin with that date, 
and the first six months period for any employee thereafter employed 
by any member of the Code shall begin with the date of employ- 
ment of such employee by such member. After the date of the 
employment by any member of the Code of any employee such 
member shall not knowingly permit such employee who also shall 
have performed work for one or more othei- employers to work for 
such menibei- such number of hours as Avould result in a violation of 
the Code had all such work been performed for such member. 

Section 3. None of the members of the Code shall emph^y in or 
about its plants in the Industry any person under IG years of age. 



337 

Section 4. Throughout the history of the Industry geographical 
ivage differentials have existed, due in the main to differences in 
living costs and general economic conditions and the ability ade- 
quately to man the industries in the respective localities. The estab- 
lishments in the Industry in the different localities have been devel- 
oped under such differences in wages and, after a survey of the 
matters bearing on such differences in the various sections of the 
United States, for the purposes of this Article IV the wage districts 
described in Schedule .C annexed hereto have been established. 

Section 5. Until changed by amendment of the Code as herein- 
after in Article XII provided, the minimum rates of pay per hour 
which shall be paid by members of the Code for common labor (not 
including that of apprentices and learners) in the Industry in the 
respective wage districts described in such Schedule C shall be the 
rates set forth in Schedule D annexed hereto. None of the mem- 
bers of the Code shall pay common laborers (not including appren- 
tices and learners) in its emphjy in the Industry in any such district 
any rate of pay less than the rate specified for such district in such 
Schedule D, and any violation of this provision of the Code shall 
be deemed an unfair practice. Such rates of pay shall not, however, 
be understood to be the maximum rates of pay for their respective 
districts, but, until changed as aforesaid, none of the members of 
the Code shall be required to pay its common laborers in the Indus- 
try in any of such districts a rate of pay higher than the rate speci- 
fied for such district in such Schedule D, except as such member 
shall have agreed to pay such higher rate in any agreement hereto- 
fore or hereafter made by such member with its employees. Until 
this provision shall have been changed by amendment as aforesaid, 
each member of the Code will pay to each of its emplovees in the 
Industry who on July 14, 1933, was receiving pay at a rate of pay 
per hour in excess of the rate of pay per hour then being paid by 
such member for common labor a rate of pay per hour Avhich shall 
be at least 15% greater than that which such employee was then 
receiving; ji^rovhled, however^ that the foregoing provision shall not 
be so construed as to require any member of the Code to make any 
increase in the rate of pay per hour to be paid by such member to 
any of its employees in any wage district that will result in a rate 
of pay per hour wdiich shall be higher than the rate of pay per 
hour paid to employees doing substantially the same class or kind 
of labor in the same wage district by any other member of the Code 
which shall have increased its rates of pay per hour in accordance 
with such provision. In the case of employees (not including ap- 
prentices and learners) performing work for which they are paid 
per piece of work performed, the minimum rate of pay which each 
member of the Code shall pay for such work shall be sufficient to 
produce the minimum rate of pay per hour provided in the Code 
for common labor at such plant. 

Article Y — Production and New Capacity 

Section 1. It is the consensus of opinion in the Industry that it 
is not necessary, in order to effectuate the policy of Title I of the 
National Industrial Recovery Act, to make any specific provision 
in the Code for controlling or regulating the volume of production 

70029°— 34 3 



338 

in the Industry or for allocating production or sales among its mem- 
bers. It is believed that the elimination of unfair practices in 
the Industry will automatically eliminate any overproduction therein 
and any alleged inequities in the distribution of production and sales 
among its members. Adequate provision shall be made under the 
Code for the collection of statistics regarding production and of 
other data from which it may be determined from time to time 
whether overproduction in the Industry exists and whether in the 
circumstances any restriction of production is. necessary in order to 
effectuate the policy of such Title I. The Board of Directors shall 
furnish to the Administrator summaries or compilations of such sta- 
tistics and other data in reasonable detail. Should it at any time in 
the circumstances as they shall then exist appear to the Board of Di- 
rectors that the policy of such Title I will not be elfectuated in the 
Industry because of the fact that through the Code production there- 
in is not controlled and regulated, then the Board of Directors is 
hereby empowered, subject to the approval of the President after 
such conference with or hearino- of interested persons as he may pre- 
scribe, to make, modify or rescind such rules and regulations for the 
purpose of controlling and regulating production in the Industry, in- 
cluding the fixing of such liquidated damages for violations of such 
rules and regulations, as such Board shall deem to be necessary 
or proper in order to effectuate the policy of such Title I. All such 
rules and regulations from time to time so made and in effect shall 
be binding upon each member of the Code to which notice thereof 
shall have been given. 

Section 2. It is also the consensus of opinion in the Industry 
that, until such time as the demand for its products cannot ade- 
quately be met by the fullest possible use of existing capacities for 
producing pig iron and steel ingots, such capacities should not be 
increased. Accordingly, unless and until the Code shall have been 
amended as hereinafter provided so as to permit it, none of the mem- 
bers of the Code shall initiate the construction of any new blast 
furnace or open hearth or Bessemer steel capacity. The President 
may, however, suspend the operation of the provisions of this 
Section. 

AirncLE VI — AniviiNisTRAnoN or the Code 

Section 1. The administration of the Code shall be under the 
direction of the Board of Directors. The Board of Directors shall 
have all the powers and duties conferred upon it by the Code and 
generally all such other powers and duties as shall be necessary or 
proper to enable it fully to administer the Code and to effectuate its 
purpose. 

Section 2. The Secretary shall act as Secretary under the Code. 
Under the direction of the Board of Directors, he shall keep all 
books (excejjt books of account) and records under the Code and, 
exfc'i^t as such Board shall otherwise ])r()vide, shall collect, file and 
collate all statistics and other informaticm required by the Board of 
Directors for the proper administration of the Code. 

Sec'JTOn H. The Treasurer shall act as Treasurer under the Code 
.i.nd, under the direction of the Board of Directors, he shall have 



339 

custody of, and have charge of tlie disposition of, all funds collected 
under the Code ; and he shall keep proper books of account showing 
the collection and disposition thereof. 

Section 4. The Board of Directors shall have power from time to 
time (a) to appoint and remove, and to fix the compensation of, 
all such other officers and employees and all such accountants, at- 
torneys and experts, as said Board shall deem necessary or proper for 
the purpose of administering the Code and (b) to fix the compensa- 
tion of the Secretary and the Treasurer for their services in acting 
under the Code. 

Section 5. The expenses of administering the Code shall be borne 
by the members thereof. The Board of Directors may from time to 
time make such assessments on account of such expenses against the 
members of the Code as it shall deem proper and such assessments 
shall be payable as such Board shall specify. The part of such ex- 
penses which shall be assessed against each member of the Code 
shall bear the same relation to the total thereof as the aggregate 
amount in dollars of the invoiced value of the products cTelivered 
by such member for consumption within the United States during 
the preceding calendar year shall bear to the aggregate amount in 
dollars of the invoiced value of the products delivered by all the 
members of the Code for consumption within the United States 
during such calendar year. Failure of anj^ member of the Code to 
pay the amount of any assessment against such member for a period 
of thirty days after the date on which it became payable shall 
constitute a violation of the Code, 

Section 6. The Board of Directors may from time to time appoint 
such committees as it shall deem necessary or proper in order to 
effectuate the purpose of the Code, and it may delegate to any such 
committee generallj' or in particular instances such of the powers and 
duties of the Board of Directors under the Code as such Board 
shall deem necessary or proper in order to effectuate such purpose. 
Any member of any such committee may be a member of the Board 
of Directors or an officer or a director of a member of the Code or a 
person not having any official connection witli any member of the 
Code or with the Institute, as the Board of Directors shall deem 
proper. 

Section 7. The members of the Code recognize that questions of 
public interest are or may be involved in its administration. Ac- 
cordingly, representatives of the Administration consisting of the 
Administrator and one or two other persons appointed by him 
(who shall be persons not having or representing interests antago- 
nistic to the interests of members of the Industry) shall be given 
full opportunity at such times as shall be reasonably convenient to 
discuss with the Board of Directors or any committees thereof {iny 
matters relating to the administration of the Code and to attend 
meetings of the Board at which action on any such matters shall be 
undertaken and to make recommendations as to methods or measures 
of administering the Code. Due notice of all such meetings of the 
Board of Directors shall be given to such representatives of the 
Administration, The records of the Board of Directors relating 
in any way to the administration of the Code shall be open to such 
representatives at all reasonable times. They shall be afforded by 



340 

the Board of Directors complete access at all times to all records, 
statistical material or other information furnished or readily avail- 
able to the Board of Directors in connection with, or for the pur- 
poses of, the administration of the Code. The Board of Directors, 
acting directly or through one or more committees appointed b.y it, 
shall give due consideration to all requests, suggestions or recom- 
mendations made by such representatives of the Administration and 
render every possible assistance to such representatives in obtaining 
full information concerning the operation and administration of 
the Code, to the end that the President may be fully advised regard- 
ing such operation and administration through reports that may 
be made to him from time to time by such representatives, and to the 
end that the President may be assured that the Code and the admin- 
istration thereof do not promote or permit monopolies or monopo- 
listic practices, or eliminate or oppress small enterprises, or operate 
to discriminate against them and do provide adequate protection of 
consumers, competitors, employees and others concerned and that 
they are in furtherance of the public interest and operate to ef- 
fectuate the purposes of Title I of the National Industrial 
"Recovery Act. 

Article VII — Prices and Terms of Payment 

None of the members of the Code shall make any sale of any prod- 
uct at a price or on terms and conditions more favorable to the pur- 
chaser thereof than the price, terms or conditions established by such 
member in accordance with the provisions of Schedule E annexed 
hereto and in effect at the time of such sale ; nor, except as otherwise 
provided in such Schedule E, shall any member of the Code make 
any contract of sale of any product at a jarice or on terms and con- 
ditions more favorable to the purchaser thereof than the price, terms 
and conditions established as aforesaid and in effect at the time of 
the making of such contract of sale. 

Article VIII — Unfair Practices 

For all purposes of the Code the acts described in Schedule H an- 
nexed hereto shall constitute unfair practices. Such unfair prac- 
tices and all other practices which shall be declared to be unfair 
practices by the Board of Directors as provided in paragraph P of 
such Schedule H or by any amendment to the Code adopted as here- 
inafter in Article XII ])rovided and at tlie time in effect shall be 
deemed to be unfair methods of competition in commerce within 
the meaning of the Federal Trade Commission Act as amended, and 
the using or employing of any of them shall be deemed to be a viola- 
tion of the Code, and any member of the In(histry which shall 
directly, or indirectly through any officer, emi)loyee, agent or repre- 
sentative, knowingly use or employ any of such unfair practices shall 
be guilty of a violation of the Code. 

Article IX — Reports and Statistics 

Section 1. The Board of Directors shall have power from time 
to time to re(|uire each member of the Code to furnish to the Secre- 
tary for the use of the Board of Directors such information concern- 



341 

ing the production, shipments, sales anc] unfilled orders of such 
member and the hours of labor, rates of paj' and other conditions 
of employment at the plant or plants of such member and such 
other information as the Board of Directors shall deem necessary 
or proper in order to effectuate the purpose of the Code and the 
policy of Title I of the National Indui^trial Recovery Act, The 
Board of Directors may require that any such information be fur- 
nished periodically at such times as it shall specify and may require 
that any or all information furnished be sworn to or otherwise 
certified or authenticated as it shall prescribe. Failure of any mem- 
ber of the Code promptly to furnish to the Secretary information 
required by the Board of Directors and substantially in the form 
prescribed by it shall constitute a violation of the Code. The Board 
of Directors shall not require any information regarding trade 
secrets or the names of the customers of any member of the Code. 

Section 2. Any or all information furnished to the Secretary by 
any member of the Code shall be subject to checking for the purpose 
of verification by an examination of the books and accounts and 
records of such member by any accountant or accountants or other 
person or persons designated by the Board of Directors and shall 
be so checked for such purpose, if the Board of Directors shall re- 
quire it. The cost of each such examination shall be treated as an 
expense of administering the Code; 'provided^ however^ that, if upon 
such examination any such information shall be shown to have been 
incorrect in any material respect, such cost shall be paid by the 
member of the Code which furnished such information. 

Skction 3. The Board of Directors shall require the members 
of the Code from time to time to furnish such information as shall 
be necessary for the proper administration of the Code. 

Section 4. To the extent that the Board of Directors may deem 
that any information furnished to the Secretary in accordance with 
the provisions of the Code is of a confidential character in the in- 
terest of the member of the Code which shall have furnished it 
and that the publication thereof is not essential in order to effectu- 
ate the policy of Title I of the National Industrial Recovery Act, 
such information shall be treated by the Board of Directors and 
by the other members of the Code, if any knowledge of it shall have 
come to them, as strictly confidential; and no publication thereof 
to anyone or in any manner shall be made other than in combina- 
tion with similar information furnished by other members of the 
Code, in which case the publication shall be made only in such 
manner as will avoid the disclosing separately of such confidential 
information. 

Section 5. Summaries or compilations in reasonable detail of all 
information which shall be furnished to the Secretary pursuant to 
the provisions of this Article IX shall be made periodically and 
sent to the i^dministrator. 

Article X — Penalties and Damages 

Section 1. Any violation of any provision of the Code by any 
member of the Industry shall constitute a violation of the Code 
by such member. 



342 

Section 2. Recognizing that the violation by any member of the 
Code of any provision of Article VII or of Schedule E of the Code 
will disrupt the normal course of fair competition in the Industry 
and cause serious damage to other members of the Code and that 
it Avill be impossible fairly to assess the amount of such damage 
to any member of the Code, it is hereby agreed by and among 
all members of the Code that each member of the Code which 
shall violate any such provision shall pay to the Treasurer as an 
individual and not as treasurer of the Institute, in trust, as and 
for liquidated damages the sum of $10 per ton of any products sold 
by such member in violation of any such provision. 

Section 3. Except in cases for which liquidated damages are 
fixed in the Code and in cases which shall give rise to actions in 
tort in favor of one or more members of the Code for damages 
suffered by it or them, the Board of Directors shall have power from 
time to time to establish the amount of liquidated damages payable 
b}^ any member of the Code upon the commission by such member 
of any act constituting an unfair practice under the Code and a list 
of the amounts so fixed shall from time to time be filed with the 
Secretary. Upon the commission by any member of the Code of 
any act constituting an unfair practice under the Code and for 
which liquidated damages are not fixed in the Code or which does 
not give rise to an action in tort in favor of one or more members 
of the Code for damages suffered by it or them, such member shall 
become liable to pay to the Treasurer as an individual and not as 
treasurer of the Institute, in trust, liquidated damages in the amount 
at the time established by the Board of Directors for such unfair 
practice and specified in the list then on file with the Secretary as 
aforesaid. 

Section 4. All amounts so paid to or collected by the Treasurer 
under this Article X or under Section 4 of Schedule E of the Code 
shall be lield and disposed of by him as part of the funds collected 
under the Code and each member of the Code not guilty of the 
unfair practice in respect of which any such amount sluill have been 
paid or collected shall be credited with its ;;ro rata share of such 
amount on account of any and all assessments (other than damages 
for violation of any provision of the Code) due or to become due 
from such member under the Code, or, in the case of any excess, 
as shall be determined by the Board of Directors, such fro Tata 
share to l)e computed on the same basis as the last previous assess- 
ment made against such member on account of the expenses of ad- 
ministering the Code as hereinbefore in Section 5 of Article VI 
provided. All rights of any person who shall at any time be the 
Treasurer in respect of any amounts wliich sliall be payable to him 
because of the commission by any member of the Code of any act 
constituting an unfair practice under the Code, whether payable 
under tlie provisions of this vVrticle X or under any other ])rovision 
of the Code, shall pass to and become vested in his successor in office 
upon the appointment of such successor. 

Section 5. Each meml)er of the Code by becoming such member 
agrees with every other member thereof that tlie Code constitutes 
a valid and binding contract by and among all members of the 
Code, subject, liowever, to the i)rovisions of Section 7 of Article 



343 

XI, and that, in addition to all penalties and liabilities imposed by- 
statute, any violation of any provision of tlie Code by any member 
thereof shall constitute a breach of such contract and shall subject 
the member guilty of such violation to liability for liquidated dam- 
ages pursuant to the provisions of the Code. Each member of the 
Code by becoming such member thereby assigns, transfers and de- 
livers to the Treasurer as an individual and not as treasurer of the 
Institute, in trust, all rights and causes of action whatsoever which 
shall thereafter accrue to such member under the Code for such 
liquidated damages by reason of any violation of the Code by any 
other member tliereof, and thereby designates and appoints the 
Treasurer as such individual the true and lawful attorney-in-fact 
of such member to demand, sue for, collect and receipt for any and 
all amounts which shall be owing to such member in respect of any 
such right or cause of action, and to compromise, settle, satisfy and 
discharge any such right or cause of action, all in the name of such 
member or in the name of the Treasurer individually, as he shall 
elect. 

Section 6. Anything in the Code to the contrary notwithstand- 
ing, the Board of Directors by the affirmative vote of two-thirds of 
the whole Board may waive any liability for liquidated damages 
imposed by or pursuant to any provision of the Code for any viola- 
tion of any provision thereof, if in its discretion it shall decide that 
such violation was innocently made and that the collection of such 
damages will not to any material extent tend to effectuate the policy 
of Title I of the National Industrial Recovery Act. 

Article XI — General Provisions 

Section 1. Any notice, demand or request required or permitted 
to be given to or made upon any member of the Code shall be suf- 
ficientl}^ given or made if mailed postage prepaid addressed to such 
member at the address of such member on file with the Secretary. 
A waiver in writing signed by anj^ member of the Code of any 
such notice, demand or request and delivered to the Secretary' shall 
be deemed to be the equivalent of a notice, demand or request duly 
given or made, whether or not such waiver was signed and delivered 
before the time when such notice, demand or request was required 
or permitted to be given or made. 

Section 2. Nothing contained in the Code shall be deemed to con- 
stitute the members of the Code partners for any purpose. None 
of the members of the Code shall be liable in any manner to anyone 
for any act of any other member of the Code or for any act of the 
Board of Directors, the Treasurer or the Secretary, or any committee, 
officer or employee appointed under the Code. None of the members 
of the Board of Directors or of any committee appointed under the 
Code, nor the Treasurer, nor the Secretary, nor any officer or em- 
ployee appointed under the Code, shall be liable to anyone for any 
action or omission to act under the Code, except for his wilful mis- 
feasance or nonfeasance. Nothing contained in the Code shall be 
deemed to confer upon anyone other than a member of the Code any 
right, claim or demand whatsoever not expressly provided by statute 
against any member of the Code or against any member of the 



344 

Board of Directors or of any committee appointed under the Code or 
against the Treasurer or the Secretary or any officer or employee 
appointed under the Code. 

Section 3. As soon as members of the Industry which would, 
if then members of the Code, have the right to cast at least 75% of 
all the votes that might be cast at a meeting of the members of the 
Code, if all members of the Industry were then members of the Code 
and present at such meeting, shall sign and deliver to the Secretary 
letters substantially in the form set forth in Schedule A annexed 
hereto, the Board of Directors shall submit the Code to the President 
pursuant to the provisions of Title I of the National Industrial Re- 
covery Act and, upon the approval of the Code by the President 
pursuant to the provisions of such Title I, it shall constitute a bind- 
ing contract by and among the members of the Code and the provi- 
sions thereof shall be the standards of fair competition for the 
Industry; subject^ however^ to amendment or termination as here- 
inafter in Article XII provided, and subject also to the provisions 
of Section 7 of this Article XI. 

Section 4. To the extent required or made possible by or under 
the provisions of Title I of the National Industrial Recovery Act 
the provisions of the Code shall apply to and be binding upon every 
member of the Industr}^, whether or not such member shall be a 
member of the Code. No member of the Industry which shall not 
also be a member of the Code shall be entitled to vote at any meeting 
of members of the Code or to any other right, power or privilege 
provided in the Code for the members thereof. 

Section 5, The Board of Directors shall have power from time 
to time to interpret and construe the provisions of the Code, includ- 
ing, but without any limitation upon the foregoing, the power to 
determine what are products within the meaning of that term as it 
is used in the Code. Any interpretation or construction placed 
upon the Code by the Board of Directors shall be final and con- 
clusive upon all members of the Code. 

Section 6. In case any action taken by the Board of Directors in 
the exercise of the power vestetl in it by the provisions of the Cod© 
may appear to the Administrator to constitute a modification of the 
Code or an exemption of any one or more members of the Industry 
from the application of the provisions of the Code, the Adminis- 
trator may require that such action be suspended in order to afford 
an opportunity for investigation by him of the merits of such action 
and further consideration thereof by the Board of Directors. 
Pending the determination on such investigation or further con- 
sideration, such action sliall not become effective, unless the Admin- 
istrator sliall approve it or unless he shall fail to disapprove it 
after thii-ty (lUJ) days notice to him of intention to proceed with 
such action in its original or modified form. 

Section 7. The members of the Code recognize that, pursuant to 
subsection {h) of Section 10 of the National Industrial Recovery 
Act, the President may from time to time cancel or modify any 
order, approval, license, rule or regulation issued under Title I 
of said Act. 



345 
Article XII — Amendments — ^^Termination 

Section 1. The Code may be amended at any time in the manner 
in this Section 1 provided. The changing of any schedule hereto 
or the addition hereto of any new schedule shall constitute an amend- 
ment of the Code. All amendments shall be proposed by the Board 
of Directors by vote of the majority of the members thereof at the 
time in office. Each amendment so proposed shall be submitted to 
a meeting of the members of the Code which shall be called for 
such purpose upon notice given in accordance with the provisions 
of Section 1 of Schedule B and Section 1 of Article XI of the Code. 
If at such meeting members of the Code having the right to cast at 
least 75% of all the votes that might be cast at such meeting, if all 
the members of the Code were present thereat, shall vote in favor 
of the adoption of such amendment, such amendment shall be sub- 
mitted by the Board of Directors to the President for approA'al, if 
approval thereof by him shall then be required by law. Every such 
amendment shall take effect as a part of the Code upon the adoption 
thereof by the members of the Code as above provided and the ap- 
proval thereof by the President, if approval thereof by him shall 
be required as aforesaid. 

Section 2. The Code may be terminated at any time either by 
action of the President as hereinbefore provided or by the same vote 
of the members of the Code as is above provided for the amendment 
thereof. When so terminated all obligations and liabilities under 
the Code shall cease, except those for unpaid assessments theretofore 
made in accordance with the provisions of the Code and those for 
liquidated damages theretofore accrued under any provision of the 
Code. 

Approved Code No. 11 — Amendment No. L 
Registry No. 1116-02. 



SCHEDULE A 

Form of Lettek of Assent to the Code 

, 19 . 

To the Secretary of 

Ameeican Iron and Stehx Institute, 

Empire State Building, Netc York, N.T. 

Dear Sib: The undersigned, desiring to become a member of the Code of 
Fair Competition of the Iron and Steel Industry, a copy of which is annexed 
hereto marked Annex A, hereby assents to all of the provisions of said Code 
(hereinafter referred to as the Code), and, effective as of the date on which 
the Code shall have been approved by the President of the United States of 
America as therein provided, or as of the date on which this letter shall have 
been delivered, if delivery thereof shall have been made subsequent to the 
date on which the Code shall have been approved by said President as afore- 
said, by the signing and delivery of this letter becomes a member of the Code 
and effective as aforesaid hereby agrees with every person, firm, association 
and corporation who shall then be or thereafter become a member of the Code 
that the Code shall constitute a valid and binding contract between the under- 
signed and all such other members. 

Effective as aforesaid, pursuant to Section 5 of Article X of said Code, the 
undersigned (a) hereby assigns, transfers and delivers to the Treasurer under 
the Code, as an individual and not as treasurer of American Iron and Steel 
Institute, in trust, all rights and causes of action whatsoever hereafter accru- 
ing to the undersigned under the Code for liquidated damages by reason of 
any violation thereof by anyone, and (ft) hereby designates and appoints said 
Treasurer as such individual the true and lawful attorney-in-fact of the under- 
signed, to demand, sue for, collect and receipt for any and all amounts which 
shall be owing to the undersigned in respect of any such right or cause of ac- 
tion, and to compromise, settle, satisfy and dischai'ge any such right or cause 
of action, all in the name of the undersigned or in the name of said Treasui'er, 
as said Treasurer sliall elect. 

For all purposes of Section 1 of Article XI of the Code the address of the 
undersigned, until it shall file with the Secretary of American Iron and Steel 
Institute written notice of a change of such address, shall be as set forth at 
the foot of this letter. 
Very truly yours. 



Address : 



(340) 



SCHEDULE B 

The Rules and Regulations in Respect of Meetiing of Membeks of the Code 

Section 1. A meeting of members of the Code may be called and held at any 
time by order of the Board of Directors, or by members of the Code having the 
right to cast at least 50% of all the votes that might be cast at such meeting, 
if all the members of the Code were present thereat, on not less than three 
days' notice to each of such members stating the time and place of such meeting 
and the purposes thereof. 

Seiciion 2. At each meeting of the members of the Code each member thereof 
shall have as many votes as shall equal the quotient obtained by dividing by 
500,000 the aggregate amount in dollars of the invoiced value of the products 
delivered by such member for consumption within the United States during the 
preceding calendar year. Fractions in such quotient shall be disregarded; 
provided, hovyever, that each member of the Code shall have at least one vote. 
All questions as to the number of votes which each member of the Code sh«ll 
be entitled to cast at any meeting of the members thereof shall be -determined 
by the Board of Directors. Any person or firm who shall be a member of the 
Code may, and any association or corporation which shall be a member of the 
Code shall, vote at meetings of the members of the Code by proxy in writing 
duly executed by such member and filed with the Secretary. Any such proxy 
may be for a specified meeting or be a general proxy for any or all meetings 
that may be held until such proxy shall have been revoked by an instrument 
in writing duly executed by the member of the Code which gave such proxy and 
filed with the Secretary. 

Section 3. At each meeting of the members of the Code, members thereof 
having the right to cast at least 75% of all the votes that might be cast at 
such meeting, if all the members of the Code were present thereat, shall 
constitute a quorum for the transaction of business at such meeting. 



(3-17) 



SCHEDULE C 
Desckiption of Wage Districts 

1. Eastern District. — Comprises that part of the United States which is 
north of the State of Virginia and east of a line drawn north and south 
through the most easterly point of Altoona, Pennsylvania ; that part of the 
State of Maryland which is west of such line ; and the Counties of Monongalia, 
Marion and Harrison in the State of West Virginia. 

2. Johnstown District. — Comprises Cambria County and the City of Al- 
toona in the State of Pennsylvania. 

3. Pittsburgh District. — Comprises the Counties of Westmoreland, Fayette, 
Greene, Washington, Allegheny, Beaver, Butler, Armstrong and Jefferson and 
that part of the County of Clearfield which is west of a line drawn north 
and south through the most easterly point of Altoona, all in the State of 
Pennsylvania. 

4. YouNGSTOWN Valley District. — Comprises the Counties of Lawrence, 
Mercer and* Venango in the State of Pennsylvania and the Counties of Trum- 
bull, Mahoning and Columbiana in the State of Ohio. 

5. North Ohio River District. — Comprises the cities along the Ohio River 
north of the City of Parkersburg, West Virginia, and the Counties of Belmont 
and Jefferson in the State of Ohio and the Counties of Marshall, Ohio, Brook 
and Hancock in the State of West Virginia. 

6. Canton, Massillon and Mansfield District. — Comprises the Counties 
of Stark, Tuscarawas, Summit, Richland and Marion in the State of Ohio. 

7. Cleveland District. — Comprises the Counties of Ashtabula, Lake, Cuya- 
hoga and Lorain in the State of Ohio. 

8. BuFiALO District. — Comprises that part of the State of New York west 
of a line drawn north and south through the most easterly point of Altoona, 
Penns.\lvania. and the Counties of Erie, Crawford and Warren in the State 
of Pennsylvania. 

9. Detroit-Toledo District. — Comprises the Counties of Seneca and Lucas in 
the State of Ohio and the Counties of Monroe, Lenawee, Jackson, Wayne, 
Oakland, Macomb and Washtenaw in the State of Michigan. 

10. South Ohio River District. — Comprises the State of Kentucky, the City 
of Parkersburg, West Virginia, the cities along the Ohio River south of said 
City, the Counties of Guernsey, Muskingum, Jackson, Licking and Butler in 
the State of Ohio and the County of Wood in the State of West Virginia'. 

11. Indiana-Illinois-St. Louis District. — Comprises all the State of Indi- 
ana, except the county of Lake; all the State of Illinois, except the Counties 
of Lake and Du Page and the Chicago Switching District; the City of St. 
Louis and the County of St. Louis in the Slate of Missouri; the County of 
Scott in tilt" State of Icnva ; and the Counties of Rock and Ozaukee in the State 
of Wisfonsin. 

12. Chicago Distuict. — Comprises the Chicago Switching District; the Coun- 
ties of Lake and Du Page in the State of Illinois ; the County of Lake in the 
State of Indiana ; and the Counties of Kenosha, Racine and Milwaukee in the 
State of .Wisconsin. 

18. Southern District. — Comprises all that part-of the United States south 
of the States of Maryland, West Vii'ginia, Kentucky and Missouri, and the 
States of Texas and ()!<lalioma, but does not include the County of Jefferson 
in the State of Alnb.imii. 

14. liiiiMiNGiiAM District. — ("oiiiiulscs the County of Jefferson in the State 
of Alabama. 

in. Kansas City District.^ — ('nnipri.ses the County of Jackson in the State 
of Missouri juid tlie County of Polk in the State of Iowa. 

1(5. DiJUTTii District. — Comprises the County of St. Louis in the State of 
Minnesota. 

(318) 



349 

17. Colorado District'. — Comprises the State of Colorado. 

18. Utah District. — Comprises the State of Utah. 

19. Seattle District. — Comprises the County of King in the State of Wash- 
ington and the County of Multnomah in the State of Oregon. 

20. San Francisco District. — Comprises the Counties of San Mateo, Alameda, 
Sacramento and Contra Costa in the State of California. 

21. Los Angeles District. — Comprises the County of Los Angeles in the State 
of California, 



SCHEDULE D 
Minimum Rates of Pay foe Common Labor 



Cents per 
how 

Eastern District 35 

Johnstown District 37 

Pittsburgh District 40 

Youngstown Valley District— 40 

North Ohio River District 40 

Canton, Massillon and Mans- 
field District 37 

Cleveland District 40 

Buffalo District 38 

Detroit-Toledo District 40 

South Ohio River District 37 

Indiana-IUinois-St. Louis Dis- 
trict 37 



Ce»ts per 
hour 

12. Chicago District 40 

13. Southern District 25 

14. Birmingham District 27 

15. Kansas City District 35 

16. Duluth District 37 

17. Colorado District 40 

18. Utah District 39 

19. Seattle District 38 

20. San Francisco District 37 

21. Los Angeles District 35 



(350) 



SCHEDULE E 
Concerning Prices and Terms of Payment 

Section 1. Wherever used in the Code the terms hereinafter in tills Section 
1 defined shall, unless the context shall otherwise clearly indicate, have the 
respective meanings hereinafter in this Section 1 set forth. The deetinition 
of any such term in the singular shall apply to the use of such term in the 
plural and vice versa. 

(a) Until Schedule F of the Code shall have been amended as in Article 
XII of the Code provided, the term " basing point " for any product means 
one of the places listed in such Schedule F as a basing point for such prod- 
uct. Thereafter the term shall mean one of the places listed in such Schedule 
F as at the time in effect as a basing point for such product. 

(&) The term "base price" for any product means the price for such prod- 
uct f.o.b. a basing point, before any extras in respect of such product shall 
be added or any discounts for early payment or deductions shall be allowed 
or made. 

(c) The term "place of delivery" as used with respect to any product 
means (1) the railroad freight station at or nearest to the place at which 
the purchaser shall intend to use such product or at which such purchaser 
shall have a place of business and shall store such product for resale, or (2), 
in the case of a product sold to a jobber for direct shipment by a member of 
the Code to a purchaser of such product from such jobber, the railroad freight 
station at or nearest to the place at which such purchaser shall intend to use 
such product, or (3), in the case of a product destined for delivery at a port 
in the Canal Zone or in Alaska, a dock at such port, or (4), except as the 
Board of Directors shall otherwise determine, in the case of carload quantities 
of plates, shapes and bars intended for fabrication for an identified structure, 
the railroad freight station at or nearest to the place at which such structure 
is to be erected. 

(d) The term "identified structure" means a structure which, when the 
product or products that enter into its construction are assembled or erected, 
is fixed in its location for use at the point of the assembly or erection of such 
product or products, or a ship or a barge. 

(e) The term " shi])ment " as used with re^iject to any product means the 
delivery of the possession of such product to a carrier for the transportation 
thereof to the place of delivery, or. when such product shall be transported by 
the member of the Code which shall have sold or contracted to sell it, the 
completion of the loading of such product and the commencement of the trans- 
portation thereof to the place of delivery. 

if) Except as hereinafter in this paragraph (f) provided, the term "all-rail 
published tariff freight charges " as used with resix^ct to the sale by a member 
of the Code of any quantity of any product means the freight charges applicable 
to the quantity of such product shipped at one time at the all-rail published 
tariff freight rates in effect at the time of the shipment thereof, and as used 
with respect to the sale by a member of the Code of any quantity of any product 
sold at one time for use in the construction of an identified structure, such 
term means the freight charges applicable to such quantity of such product 
at the all-rail published tariff freight rates in effect at the time of such sale. 
In the case of a sale or contract of sale of a carload or more of various prod- 
ucts for shipment in mixed carload lots, whether the respective base prices 
for sxich products be based on the same or different basing points, the term 
"all-rail published tariff freight charges" means the freight charges applicable 
to the respective quantities of such products sold from the basing point or 
basing points on which the respective base prices of such pi-oducts are based 
to the place of delivery thereof at the all-rail published tariff carload freight 
rates in effect at the time of the shipment of such products. 

(351) 



352 

(g) The term "period of free credit" means the period of time between 
the date of a shipment of a product to the purchaser of such product and the 
date from and after which such purchaser shall be required to pay interest on 
the purchase price of such product or any part thereof which shall not have 
been paid prior to the expiration of such period. 

{h) The term "date of invoice" means the date of the invoice of any 
product. 

(i) The term "discount for early payment" means the amount of the deduc- 
tion allowed for the payment of an invoice of products within a specified 
number of days after the date of such invoice. 

(j) The term " an affiliated group " means one or more corporations con- 
nected through stock ownership with a common parent corporation, if (1) at 
least 75% of the stock of each of such corporations (except such common 
parent corporation) is owned directly by one or more of the other corporations, 
and (2) such common parent corporation owns directly at least 75% of the 
stock of at least one of the other corporations. The term " an affiliated com- 
pany of a member of the Code" means (1) a corporation which is one of an 
affiliated group that also includes such member of the Code, or (2), in case 
the member of the Code is a person, firm or association, a corporation at least 
75% of the stock of which is owned by such member. For the purposes of this 
paragraph (j) the term "stock" does not include non-voting stock which is 
limited and preferred as to dividends. 

Section 2. Each member of the Code which shall have become such within 
ten days after the effective date of the Code shall prior to the expiration of 
such ten days file, and each member of the Code which shall become such after 
the expiration of such ten days shall upon becoming a member of the Code 
file, with the Secretary a list showing the base prices for all its products, and 
from and after the expiration of sux.'h ten days or, in the case of any such 
list filed at or after the expiration of such ten days, from and after the date 
on which such list shall be filed, such member shall at all times maintain on 
file with the Secretary a list showing the base prices for all its products and 
shall not make any change in such base prices except as provided in this 
Schedule E. Each such list shall state the date upon which it shall become 
effective, which date, except as hereinafter in this Section 2 otherwise pro- 
vided, shall be not less than ten days after the date of filing such list with the 
Secretary ; provided, hotcever, that the first list of base prices filed by any 
member of the Code as above provided shall take effect on the date of the filing* 
thereof. In naming a product in any such list the name of such prodiict shown 
in Schedule F of the Code shall be used, and none of such lists filed by any- 
lii'ember of the Code shall show more than one base price for any product of 
any description at any basing point for such product, except that in any list'- 
of base prices for pipe filed by any member of the Code both a carload price 
and a less-than-carload price may be shown. None of the base prices shown in 
any list filed by any member of the Code as herein provided shall be changed 
except by the filing by such member with the Secretary of a new list of its 
base prices, which shall become effective on the effective date therein specified, 
which, except as hereinafter in this Section 2 otherwise provided, shall not be 
less than ten days after the date on which such new list of bnse prices shall 
have been so filed. If at any time there shall be on file with the Secretary lists 
of base prices in which two or more base prices for any product at any basing 
point shall be shown, any member of the Code which shall have filed a list of 
base prices in which a base price for such product at such basing point shall 
be shown may file a new list of base prices in which a new base price for such 
product at such l)asing point may be shown as low as the lowest base price for 
such y)roduct at such liasiiig jxiint sliown in a list of base prices filed by any 
other member of the <V>ile and sucii new list of base prices shall bcconie effec- 
tive in so far as sncli product is coiifcnied on the dale specilied therein, wliich 
date may be i(i) the same date as that on which such list of base prices in 
which such lowest base price shall he shown shall become efTective, if such 
last-mentioned list of base i)rices shall not liave become effe<'tive on the date 
of the filing of such new list of base prices, or (b) the date of the filing of 
such new list of base j)i-ices. if the list of base prices in which sucli l.iw(>st has*; 
price shall be shown sIimII then be effective. In the case of products wliich 
arc sold on a list and discotnit basis, for the purposes of this Section 2 Hie list 
of ba.se prices shall consist of a price list and one or more basing discoiuit 
lists, from which the base prices of such products shall be determined. 



353 

Section 3. Except as hereinafter otherwise provided in respect of standard 
Tee rails of more than 60 pounds per yard and angle bars and rail joints 
therefor, the base price for any product shown in any list of base prices tiled 
by a member of the Code in accordance with the provisions of the foregoing 
Section 2 shall be as follows: (a) If such member shall operate a plant for the 
production of such product which is located at a basing point for such product, 
f.o.b. such basing point, or (b), if such member shall operate a plant for the 
production of such product which is not located at a basing point for such 
product, f.o.b. the basing point for such product nearest in terms of all-rail 
freight rates to such plant, or (c), if any Gulf or Pacific Coast port shall 
be listed as a basing point for such product in Schedule F of the Code as at 
the time in effect, f.o.b. cars dock such port, or (<?), if any Atlantic Coast 
port shall be listed in such Schedule F as at the time in effect as a basing 
point for ferro-manganese or spiegeleisen, then for such product f.o.b. cars 
doclj such port, or (e), so long as Palmerton, Pa., shall be listed in such 
Schedule F as at the time in effect as a basing point for spiegeleisen, then for 
such product f.o.b. such basing point. Except as otherwise provided in this 
Schedule E, each member of the Code shall file with the Secretary and main- 
tain on file with him a list showing the base price for each of its products for 
each basing point for such product at which a plant of such member for the 
manufacture of such product shall be located and for each basing poitn for such 
product which shall be nearest in terms of all-rail freight rates to any plant of 
such member for tlie manufacture of such product not located at a basing 
point for such product ; and, if any Gulf or Pacific Coast port shall be listed 
in such Schedule F as a basing point for a product, such member may show 
in such list its base price for such product at such basing point. All base 
prices shown in the list so filed shall constitute the published base prices of such 
member for the products and for the basing points shown in such list. Except 
as aforesaid, none of the members of the Code shall file any list of base prices 
showing any price for any of its products other than the base price for such 
product f.o.b. the basing point or basing points for such product as herein- 
before provided. The published base price of each such member for any 
product (except standard Tee rails of more than 60 pounds per yard and 
angle bars and rail joints therefor) for any basing point for such product 
other than tliat or those shown in the list of base prices so filed by such 
member shall be deemed to be the lowest base price for such product at such 
other basing point which shall be shown in the list of base prices filed by any 
other member of the Code and then in effect. 

All base prices for standard Tee rails of more than 60 pounds per yard 
and for angle bars and rail joints therefor shall be f.o.b. mill of the producer 
thereof, or, in the case of such rails, angle bars and rail joints carried by 
water from any Atlantic Coast or Gulf port to any Gulf or Pacific Coast port, 
c.i.f. the port of destination. Except in the case of contracts of the character 
described in the exception contained in the second sentence of Section 8 
of this Schedule E, none of the members of the Code shall sell or contract to 
sell any product for shipment in any calendar quarter-year, until such member 
shall have filed with the Secretary a list of base prices in which the base 
price for such product at the basing point, or the base prices at the respective 
basing points, of such mendier for such product for such quarter-year shall 
be shown and such list shall have become effective ; provided, however, that 
nothing herein contained shall be so construed as to prevent such member 
from filing at any time a new list of base prices in which shall be shown 
a base price for such product at such basing point or any of such basing 
points which shall be lower than the base price for such product at such 
basing point shown in the list of base prices which was last filed by such 
member prior to the date ou which such new list of base prices was so 
filed; and provided, further, that, if such member shall file a new list of base 
prices showing any such lower base price at any basing point, any member 
of the Code may change any contract which it shall theretofore have made for 
shipment of any quantity of such product in such quarter-year at a price 
which was based on such basing point, other than a contract of the character 
described in the exception contained in the second sentence of said Section 
8, so as to provide that any part of the quantity of such product covered 
by such contract which shall not have been shipped prior to the effective date 
of such new list of base prices and which shall be shipped thereafter in such 
quarter-year may be billed at a price which shall be determined by the use 
70029°— 34 4 



354 

of such lower base price. Notwithstanding the fact that a member of the 
Code is not permitted to have on file a list of base prices in which base 
prices for a period longer than a calendar quarter-year shall be shown, any 
base price of any product shown therein for any basing point shall be deemed 
to be in effect in determining the delivered price of such product for such 
basing point required by any contract to be shipped in any subsequent quarter- 
year as permitted by the provisions of Section 8 of this Schedule E. Lists 
of base prices filed with the Secretary pursuant to the foregoing Section 2 
and to this Section 3 shall be open to inspection at all reasonable times by 
anyone. 

Section 4. Except as otherwise provided in this Schedule E, all prices quoted 
and all prices billed by any member of the Code for any product (except 
standard Tee rails of more than 60 pounds per yard and angle bars and rail 
joints therefor, which shall be quoted and billed as hereinafter provided) 
sold by such member from and after ten days after the effective date of the 
Code shall be delivered prices, which (disregarding the extras, if any, required 
by, and the deductions, if any, that may be made pursuant to, the provisions 
of the Code) shall be not less than the sum of (a) the published base price 
of such member for such product effective at the time of and for the sale 
thereof and (&) an amount equal to the all-rail published tariff freight charges 
from the basing point on which such base price is based to the place of deliveiy 
to the purchaser thereof, or, (1) if such place of delivery shall be at such 
basing point, the published tariff switching charges to such place of delivery 
from the plant of any member of the Code for the production of such product 
at such basing point nearest iu terms of such switching charges to such place 
of delivery; or, (2) if such place of delivery shall be at a Gulf or Pacific Coast 
port that is listed in Schedule F of the Code as a basing point for such product, 
the published tariff switching charges to such place of delivery from the dock 
for discharging products nearest in terms of such switching charges to such 
place of delivery; provided, however, that (a) in any case in which such 
product shall be delivered by other than all-rail transportation, the member 
of the Code selling such product may allow to the purchaser a reduction in 
the delivered price otherwise chargeable under the provisions of this Section 4 
at such rate previously approved by the Board of Directors and tiled with 
the Secretary as the Board of Directors shall deem equitable and necessary, 
in order that competitive opportunity to producers and consumers of products 
shall be maintained; and (&), subject as hereinafter in this Section 4 provided, 
if any list of base prices filed with the Secretary by any member of the Code 
pursuant to the provisions of this Schedule E and at the time in effect shall 
show a specified rate of deduction from the base price of any product to be 
allowed by such member on any sale of such product to any jol)ber for resale, 
such member may, from and after the date on which such list shall have become 
effective, allow to any jobber to whom such member shall sell such product 
for resale a deduction from such base price to such jobber for such product at 
a rate not greater than the rate so shown in such list; and provided, further, 
that the Board of Directors by the affirmative vote of three-fourths of the 
wiiole Board may permit any member of the Code in special instances or 
members of the Code generally to sell or contract for the sale of any product 
produced by such member or members at a base price which shall be less than 
the then published base price of such member or members for such product at 
the respective basing points therefor of such members, or at a delivered price 
which sliall be le.ss than the delivered price otherwise chargeable under the 
provisions of this Section 4, if by such vote such Board shall determine that 
the making of such sale or contract of sale at such less base price or less de- 
livered price is in the interest of the Industry or of any other branch of indus- 
try and will not tend to defc^at the policy of Title I of the National Industrial 
Recovery Act by making possible the using or enii>l()ying of an unfair practice. 

The Board of Directorrs shall prescribe such rules and regulations as it shall 
deem proiKjr by which the fiuestion of whether or not any purchaser or prospec- 
tive purcliaser of any product for resale is a jobber shall be determined, and in 
granting any i)ermlssi(»n as aforesaid, the Board of l)ir(H't(H-s shall prescribe 
such rules and reguhiticjns in resiifct I hereof as in ils Judgnieiit shall be neces- 
sary in order to insiii-e to the ineuibcrs of the Code that action in accordance 
witli any such permission shall not result in an unfair i)ra(ti(e; and thereafter 
such Board may by like vote n"S<ind any permission so granted or modify, 
cancel or add to any rules and regulations so prescribed. The Secretary shall 



355 

send to each member of the Code a copy of all such rules and regulations 
prescribed by such Board with respect to the determination of the question 
of whether a purchaser or prospective purchaser for resale is a jobber and 
he shall give notice in writing of all action so taken by the Board of Directors 
to each member of the Code which at the time shall be engaged in producing 
the kind of pi'oduct in respect of which any saich permission was granted. 
Before any member of the Code shall allow any such deduction to any jobber 
or sell for resale to any purchaser who shall not be a jobber any product pur- 
suant to any permission so granted to such member, such member shall secure 
from such jobber or saich other purchaser an agreement substantially in a form 
theretofore approved by the Board of Diro-ctors and filed with the Secretary 
whereby such jobber or other purchaser shall agree with such member (a) that 
such jobber or other purchaser will not, without the approval of the Board of 
Directors, sell such product to any third party at a price which at the time of 
the sale thereof shall be less than the price at which such member might at 
that time sell such product to such third party, and (b) that, if such jobber 
or such other purchaser shall violate any such agreement, he shall pay to the 
Treasurer as an individual and not as treasurer of the Institute, in trust, as 
and for liquidated damages the sum of $10 per ton of any product sold by such 
jobber or saich other piu'chaser in violation thereof. In the case of a product 
destined for delivery at a place in the Canal Zone or at a port in Alaska, the 
member of the Code selling such product, in determining its delivered price 
therefor, shall add to its published base price for such product effective at the 
time of and for the sale thereof such charges in respect of transportation as 
shall have been previously approved by the Board of Directors and filed with 
the Secretary. 

Except as aforesaid, all prices quoted and billed by any member of the Code 
for standard Tee rails of more than 60 pounds per yard and angle bars and 
rail joints therefor sold by it from and after ten days after the effective date 
of the Code (disregarding extras and deductions as aforesaid) shall be not less 
than the published base price of such member for such rails, angle bars and 
rail joints effective at the time of and for the sale thereof f.o.b. mill of the 
producer, or, in the case of such rails, angle bars or rail joints carried by water 
from any Atlantic Coast or Gulf port to any Gulf or Pacific Coast port, c.i.f. 
the port of destination. Wherever provisions of the Code or of any resolution 
adopted thereunder by the Board of Directors require, either specifically or in 
effect, that in determining the delivered price that may be quoted and billed 
for any product an amount equal to any published tariff freight charges shall 
be added, an amount not less than the appropriate tariff freight charges 
shown in any tariff published pursuant to authority of the Board of Directors 
shall be added in determining such delivered price; provided, however, that 
■when switching charges for the delivery of a product at a basing point are 
required to be added in determining such delivered price, the Board of Directors 
may b.v resolution fix such an arbitrary switching charge or such arbitrary 
switching charges for the delivery of such product as such Board shall deem 
proper with a view to preventing unequal competitive conditions in respect 
of the sale of such product for delivery at such basing point ; and provided, 
further, that, if and when the Board of Directors shall fix any such arbitrary 
switching charge or arbitrary switching charges for the delivery of a product 
at a basing point, thereafter not less than the amount of such charge or 
charges shall be added in determining the delivered price of such product. 

In case at the effective date of the Code any valid, firm contract to which 
a member of the Code shall be a party shall exist for a definite quantity of any 
product or for all or a substantial part of the requirements of the purchaser 
thereof (a) at a fixed price, or (6) at a price that can be definitely determined 
in accordance with the provisions of such contract, or (r) at the market price 
for such product at the date when a definite quantity thereof shall be specified 
tinder such contract and such contract covered a sale of 20% or more of the 
total quantity of such product produced and sold in the United States in the 
calendar year 1932, it is recognized that such contract may infiuence to an 
important extent the market price for such product during the remainder of 
its life and that, if the other members of the Code which produce and sell such 
product shall by the foregoing provisions of this Schedule E be prevented from 
selling such product during the remainder of the life of such contract at as 
favorable a price and on as favorable terms and conditions as those provided for 
in such contract, then unfair competition as between the member of the Code 



356 

which shall be a party to such contract and the other members thereof and also 
as between the other party to such contract and its competitors may result. Ac- 
cordingly, anything herein to the contrary notwithstanding, during the remain- 
der of the life of such contract any member of the Code may sell such product 
at a price and on terms and conditions as favorable as (but not more favorable 
than) the price, terms and conditions provided for in such contract and the 
Board of Directors may take such action in respect of sales of such product by 
members of the Code consistent with the terms of such contract as will insure 
the prevention of such unfair competition. In case any contract in existence 
at the effective date of the Code shall require that the price quoted and billed 
for any product that is covered by a patent shall be based on a basing point 
other than as provided in Section 3 of this Schedule E. then, anything in this 
Schedule E to the contrary notwithstanding, any member of the Code whicli 
shall produce and sell such product or any other product which the Board 
of Directors shall determine to be competitive in sale and use with such prod- 
uct may file a base price for such product or such other product for such basing 
point or basing points as will meet the requirements of such contract with, 
respect to the product covered thereby and may quote and bill delivered prices 
for such product or such other product based on such basing point or basing 
points. 

Section 5. The Board of Directors by the affirmative vote of a ma.iority of 
the whole Board may establish maximum rates of discount for early pay- 
ment and maximum periods of free credit, other than those specified in Sched- 
ule G annexed hereto, which may be allowed by any member of the Code with 
respect to the sale of any product or products to jobbers for resale as per- 
mitted by the provisions of Section 4 of this Schedule E. The Secretary shall 
give notice in writing of any action taken by the Board of Directors in ac- 
cordance with the provisions of this Section 5 to each member of the Coile 
which at the time shall be engaged in producing the kind of product in the 
sale of which any such other rates or periods shall have been established by 
such action. Except as aforesaid and except as elsewhere in this Schedule E 
of the Code otherwise provided the maximum rates of discount for early pay- 
ment and the maximum periods of free credit which may be allowed by any 
member of the Code shall be the rates and periods specified in said Schedule 
G. Except as aforesaid, all invoices for products sold by any member of the 
Code after the effective date of the Code shall bear interest from and after 
the expiration of the period of free credit at a rate which shall be not less 
than the then current rate established by the Board of Directors and filed 
with the Secretary. Nothing in the Code contained shall prevent any member 
of the Code from allowing credit to any purchaser or alhjwing any purciiaser 
to delay payment in respect of any invoice for a longer period than the maxi- 
mum period of free credit specified in such Schedule G or such other maximum 
period as shall be established in accordance with the provisions of this Sec- 
tion 5; but, if any member of the Code shall allow credit to any purchaser or 
allow any purchaser to delay payment in respect of any invoice for a period 
longer than such maximum period of free credit, then sucli member shall 
charge and collect interest on the amount in respect of which credit shall be so- 
allowed or the payment of which shall have been so delayed at a rate not 
less than the current rate established and filed as aforesaid. Anything in the 
Code to the contrary notwithstanding, the Board of Directors shall have power 
to authorize any member of the Code to comjiromise or settle on such terms 
and conditions as the Board of Directors by resolution shall api)rove any claim 
for the i)rincipal of, or the interest on, any indebtedness to such member on 
account of any riroduct or products sold by it. 

Sectton f). Except as in this Schedule E otherwise provided, any extras 
added to, and any deductions made from, the base price for any in-oduct sold 
by any member of the Code in delerniining its quoted or billed price for such 
product shiill he uniform for all members of the Code. The rales of such 
extras and of such deductions shall be I hose ai^proved fi'oni lime to time, by 
the lUtard of Directors as I)eiiig in accor(liinc(- willi (he trade i)ractice customary 
in llie Industry at Ihe effective d:ile of (he Code and as nieeling the require- 
ments of the Code. Lists showing sncli rates slial! J)e filed with the Secretary 
and sliail be oi)en to inspef-tion at all reasonable times by anyone. In case any 
member of the Code shall sell any product to which any such rate of extra 
or deduction shall apply, except as aforesaid such member shall add an extra 



357 

at a rate wliich shall uot be less than the rate of extra applicable to such 
product theretofore approved by the Board of Directors as aforesaid and at the 
time in effect and none of tlie members of the Code shall make any deduction 
at a rate that shall be more favorable to the purchaser of such product than 
the rate of deduction applicable to such product theretofore approved by the 
Board of Directors as aforesaid and at the time in effect; provided, however, 
that nothing in the Code contained shall be so construed as to prevent any 
member of the Code from selling or contracting to sell any product for use 
by the purchaser thereof in the manufacture of articles for shipment in export 
trade within the meaning of the term "export trade" as it is used in the 
Export Trade Act under an agreement by such member of the Code with such 
purchaser that, when such articles shall have been shipi)ed in such export trade, 
such member of the Code shall make an allowance at a rate approved by the 
Board of Directors and a statement of the approval of which shall theretofore 
have been filed with the Secretary, wliich rate in the opinion of such Board 
shall be snfiicient to enable such member of the Code or such purchaser to meet 
foreign competition in the sale and delivery of such product or such articles, 
as the case may be. 

Section 7. Tlie practice of shipping products on consignment may result in 
unfair competition and it is the intention of the Industry to eliminate such 
practice as soon as possible after the effective date of the Code. Accordingly, 
except to the extent necessary to carry out arrangements existing on the 
effective date of the Code and which shall have been reported to the Board 
of Directors, from and after such date none of the members of the Code 
shall deliver products, other tban pii^, on consignment except to an affiliated 
company of such member. All arrangements for the delivery by any member 
of the Code of products on consignment ( other than consignments to an 
affiliated company of such member and other than consignments of pipe) 
existing on the effective date of the Code shall be terminated on or before 
June 30, 1934, and all stock held on consignment on that date shall either be 
sold to the consignee or possession thereof shall be taken by the consignor. 
The Board of Directors shall investigate problems presented in the elimina- 
tion of consigned stocks of pipe and shall recommend to the members of the 
Code which shall be parties to then existing arrangements with respect to 
shipments of pipe on consignment (other than consignments from a member 
of the Code to an affiliated company) such action in respect thereof as such 
Board shall deem i)ropor and designed to accomplish the termination of all 
such arrangements (other than as aforesaid) at as early a date as possible. 

Section 8. For all purposes of this Schedule E, a delivery of any product 
made pursuant to a contract of sale shall be regarded as a sale thereof made 
at the time of the making of such contract. Except in the case of a product 
required (a) by a puichaser for the construction of an identified structure 
or new railroad cars or locomotives under a specitied definite contract of such 
purchaser with a third party at a fixed price, or for the construction of such 
a structure or such cars or locomotives owned or to be owned by such pur- 
chaser, in each of which cases the product shall be sold under a contract which 
shall expressly provide that such product shall be used only for such structure, 
or (&) by the. Federal Government or any state, county or municipal govern- 
ment or any department or division thereof for a definite project, and except 
as the Board of Directors shall determine to be necessary for the manufacture 
and delivery of a product or necessary or advisable in order to aid the Federal 
Government or any state, count.y or municipal govei'nment in carrying through 
its program of economic recovery, reemployment of labor or relief of distress 
or otherwise for the advancement of public purposes and the general welfare, 
none of the melubers of the Code shall make any contract of sale of any 
product by the terms of which the shipment of such product is not required 
to be completed before the end of the calendar quarter-year ending not more 
than four months after the date of the making of such contract. Every con- 
tract made on or after June 1, 1934, for the sale of any product which by 
the tenns of such contract is required to be or may be delivered after the ex- 
piration of ten days after the date of such contract shall be in writing. On 
and after June 1. 1934, none of the members of the Code shall make any con- 
tract for the sale of all or any part of the requirements of the other party to 
such contract for any product, unless the maximum quantity of such product 
to be delivered under such contract shall be specified therein. 



358 

Section 9. Nothing in the Code contained, however, shall be so construed 
as to prevent the performance by any member of the Code of a valid, tirm con- 
tract existing and to which it is a party at the effective date of the Code for a 
definite quantity of any product or for all or a substantial part of the require- 
ments of the purchaser thereof (a) at a fixed price, or (&) at a price that can 
be definitely determined in accordance with the provisions of such contract, or 
(c) at the market price for such product at the date when a definite quantity 
thereof shall be specified under such contract. If any member of the Code shall 
at the effective date thereof be a party to any contract for the sale of any 
product by such member which by its terms is to continue after December 31,. 
1933, and by its terms the price to be paid for such product by the other party 
to such contract is related to the market price thereof at the date when a 
definite quantity thereof may be specified under such contract and may be less 
than such market price, then such member shall within thirty days after the 
effective date of the Code file a copy of such contract with the Secretary in 
order that the Board of Directors may consider it and take such action in 
respect thereof consistent with the rights and obligations of the parties to 
such contract as such Board shall deem proper. 

Section 10. None of the provisions of the Code shall apply to the sale by 
any member of the Code to an afiiliated company of such member of any 
product (a) for resale as the same product or (b) for its own use (but not for 
use in the production in whole or in part of any article sold by it which i& 
not a Code product, that is, a product as that term is defined in Section 3 
of Article I of the Code) or (c) for use by it in the production of one or 
more Code products to be sold by it ; provided, haivever, that a sale by an 
affiliated company of any member of the Code (1) of any Code product acquired 
by such affiliated company from such member or from one or more affiliated 
companies of such member or (2) of any Code product produced by such 
affiliated company from one or more Code products acquired by it from such 
member or from one or more afiiliated companies of such member shall be 
deemed to be a sale made by such member of the Code. 

Section 11. Nothing in the Code contained shall be deemed to apply to or 
affect the sale of any product for direct shipment in export trade by any 
member of the Code within the meaning of the term " export trade " as it 
is used in the Export Trade Act or, unless and to the extent that the Board 
of Directors shall otherwise determine, the sale of any product by any such 
member for direct shipment to tlie Philippines, Hawaii or Porto Rico or other 
insular possessions of the United States of America. 

Section 12. If and to the extent requested by the Administrator, all de- 
cisions of, permissions and approvals given by and rules and regulations made 
by, the Board of Directors pursuant to any provision of this Schedule E shall 
be reported to him. 



SCHEDULE F 
List of Basing Points 



The places hereinafter in this Schedule F listed are the 
the respective products named. 



ising points for 



Pittsburgh, Pa. 
Chicago, 111. 



Pittsburgh. Pa. 
Cleveland, O. 
Chicago, 111. 
Birmingham, Ala. 



Pittsburgh, Pa. 
Buffalo N.Y. 
Chicago, 111. 



Axles — rolled or forged 

Birmingham, Ala. 

BALE TIES SINGLE LOOP 

Duluth, Minn. 
Gulf Ports' 
Pacific Coast Ports' 

BARS — ALiOY STEEL, HOT ROLLED 

Canton, O. 
Massillon, O. 
Bethlehem, Pa. 



Pittsburgh. Pa. 
Buffalo, N.Y. 
Cleveland, O. 



BARS COLD FINISHEH), OARBON AND ALLOY 



Chicago, 111. 
Gary, Ind. 



Pittsburgh, Pa. 
Buffalo, N.Y. 
Cleveland, O. 
Chicago, 111. 
Gary, Ind. 



BARS — CONCRETE REINFORCING, STRAIGHT LENGTHS 

Birmingham, Ala. 
Youugstown, O. 
Gulf Ports 
Pacific Coast Ports 



BARS, INGOTS, BLOOMS AND BILLETS — ^IRON 

Reading, Pa. 
Danville, Pa. 
Berwick, Pa. 
Burnham, Pa. 
Creighton, Pa. 
Richmond, Va. 
Cuyahoga Falls, O. 
Louisville, Ky. 
Terre Haute, Ind. 



Pittsburgh, Pa. 
Chicago, 111. 
Troy, N.Y. 
Jersey City, N.J. 
Dover, N.J. 
Rockavpay, N.J. 
Philadelphia, Pa. 
Columbia, Pa. 
Lebanon, Pa. 

1 Except as otherwise shown in this Schedule F, the Gulf Ports are Mobile, Ala. ; New- 
Orleans and Lake Charles, La. ; and Orange, Port Arthur, Beaumont, Baytown, Galveston^ 
Houston and Corpus Christi, Tex. 

2 Except as otherwise shown in this Schedule P. the Pacific Coast Ports are San Diego, 
San Pedro (includes Wilmington and Los Angeles), Long Beach, San Francisco (includes 
Oakland). Stockton and Sacramento, Cal. ; Portland, Ore.; and Seattle (includes Tacoma), 
Everett and Bellingham, Wash. 

(359) 



360 



BARS — MERCHANT STEEaL 



Pittsburgh, Pa. 
Buffalo, N.Y. 
Cleveland, O. 
Chicago, 111. 
Gary, Ind. 



Birmingham, Ala. 

Duluth, Minn. 

Molina, 111. (Rail Steel only) 

Gulf Ports 

Pacific Coast Ports 



Pittsburgh, Pa. 
Syracuse, N.Y. 



BARS — TOOL STEtEI, 

Bethlehem, Pa. 



FEERO-MANGANESE AND SPIEGELEISEN 



New York, N.Y. 

Philadelphia, Pa. 

Baltimore, Md. 

Palmerton, Pa. ( Spiegeleisen only) 

Chicago, 111. (Spiegeleisen only) 



Gulf Ports: 

Mobile, Ala. ( Ferro-manganese 

only) 
New Orleans, La. 



Lorain, O. 



GIRDER RAILS AND SPLICE BARS THEREFOR 

Steelton, Pa. 



INGOTS, BLOOMS, BILLETS AND SLABS — ALLOY 

Pittsburgh, Pa. Canton, O. 

Buffalo, N.Y. Massillon, O. 

Chicago, 111. Bethlehem, Pa. 

INGOTS, BLOOMS, BILLETS AND SLABS — CARBON 

Pittsburgh, Pa. Gary, Ind. 

Buffalo, N.Y. Birmingliam, Ala. 

Cleveland, O. Duluth, Minn. (Billets only) 

Chicago, 111. Youngstown, O. 



LIGHT RAILS — 60 LBS. OR LESS PER YARD — ^AND SPLICE BARS AND ANGLE BARS 

THEREFOR 



Pittsburgh, Pa. 
Chicago, 111. 



Birmingham, Ala. 



Pittsburgh, Pa. 
Canton, O. 
Shelby, O. 



MECHANICAL TUBING 



Detroit, Mich. 
Milwaukee, Wis. 



PIG IRON — FOUNDRY, HIGH SILICON SILVEIRY, MALLEABLE, OPEN HEARTH BASIC, 
BESSEMER AND HIGH SILICON BESSEMESl 



Buffalo, N.Y. 
Clevohind, O. 
Ohic-Aiio, 111. 
P.iniiinghaiii, Ala. 
Youngstown, O. 
Neville Is., Pa. 
Sharpsvllle, Pa. 
lOrif. Pa. 
Bethlehem, Pa. 
Steelffm, Pa. 
Swedeland, Pa. 



Birdsboro, Pa. 

Hamilton, O. 

Jackson, O. 

Toledo, O. 

Granite City, 111. 

Detroit, Mich. 

Duluth, Minn, (except Open Hearth 

Basic) 
Provo, Utah 
F]verctt, Mass. 
Sparrows Point, Md. 



361 



PIG IRON LOW PHOSPHORUS 



Birdsboro. Pa. 
Steelton, Pa. 



Standish. N.Y. 
Jobnson City, Tenn. 



Pittsburgh, Pa 
Gary, Ind. 



PIPE — STANDARD, LINE PIPE AND OIL COUNTRY TUBULAR PROinUTS 

Lorain, O. 



Pittsburgh, Pa. 
Chicago, 111. 
Gary, Ind. 
Birmingham, Ala. 



Coatesville, Pa. 
Sparrows Point, Md. 
Gulf Ports 
Pacific Coast Ports 



Pittsburgh, Pa. 
Chicago, 111. 
Cleveland. O. 
Duluth, Minn. 



POSTS — ^FENCE AND SIGN 



Birmingham, Ala. 
Gulf Ports 
Pacific Coast Ports 



RAILROAD TIE PLATES 



Pittsburgh, Pa. 
Buffalo, N.Y. 
Chicago, 111. 
Birmingham, Ala. 
St. Louis. Mo. 
Kansas City, Mo. 



Minnequa, Colo. 
Weirton, W.Va. 
Portsmouth, O. 
Steelton, Pa. 
Pacific Coast Ports 



RAILROAD TRACK SPIKES 



Pittsburgh, Pa. 
Buffalo. N.Y. 
Cleveland, O. 
Chicago, 111. 
Birmingham, Ala. 
Yougstown, O. 
Portsmouth, O. 
Weirton, W.Va. 



St. Louis, Mo. 
Kansas City, Mo. 
Minnequa. Colo. 
Lebanon, Pa. 
Columbia, Pa. 
Richmond, Va. 
Jersey City, N.J. 
Pacific Coast Ports 



Pittsburgh, Pa. 
Buffalo, N.Y. 
Cleveland, O. 
Chicago, lU. 



SHEET BARS 



Youngstown, O. 
Canton. O. 
Sparrows Point, Md. 



Pittsburgh, Pa. 
Gary, Ind. 



Birmingham, Ala. 
Pacific Coast Ports 



Pittsburgh, Pa. 
Buffalo, N.Y. 
Chicago, 111. 



Youngstown, O. 
Coatesville, Pa. 
Sparrows Point, Md. 



362 



STEETL SHEET PILING 



Pittsburgh. Pa. 
Buffalo, N.Y. 
Chicago, III. 



Pittsburgh. Pa. 
Cleveland, O. 



Pittsburgh, Pa. 
Chicago, 111. 



Pittsburgh, Pa. 
Buffalo. N.Y. 
Chicago, 111. 
Birmingham, Ala. 
only) 



Gulf Ports 

Pacific Coast Ports 



STEIP STEIEL — COLD-ROLLED 

Worcester, Mass. 



STRIP STEEL — HOT- ROLLED 

Bimiinghani, Ala. 



STRUCTTIRAL SHAPES 



Bethlehem. Pa. 

Gulf Ports 

Pacific Coast Ports 



(standard shapes 



Pittsburgh, Pa. 
Gary, Ind. 



Pittsburgh, Pa. 



Pittsburgh, Pa. 
Buffalo, N.Y. 
Cleveland, O. 



PLATE, TIN MILL BLACK PLATE AND TERNB PLATE 

Pacific Coast Ports 



TUBES — BOILER 



TUBE ROUNDS 



Chicago, 111. 
Birmingham, Ala. 



Pittsburgh, Pa. 



WHEELS CAR, ROLLED STEEL 

Chicago, 111. 



WIRE — DRiVWN, EXCEPT AS HEREINAFTER SPECIFIED 



Pittsburgh, Pa. 
Cleveland, O. 
Chicago, 111. 
Birmingham, Ala. 

Anderson, Ind. (Merchant Wire only) 
Duluth, Minn. 
Worcester, Mass. 

Gla.s.sport, Pa. (Hot Copper-covered 
Steel only) 



Gulf Ports (Merchant Wire only) 

Mobile, Ala. 

New Orleans, La. 

Lake Charles, La. 

Galveston, Tex. 

Houston, Tex. 

Corpus Christi, Tex. 
Pacific Coast Ports 



Pittsburgh, Pa. 



WIRE HOOPS TWISTED OR WBLDErO 



Chicago, 111. 



WIRE NAILS AND STAPLES, TWISTED BARBLBSS WIRE, BARBED WIRE, TWISTED WIRE 
FENCE STAYS AND WIRE FENCING (EXCEPT CHAIN-LINK FEXNCING) 



Pittsburgh, Pa. 
Cleveland, O. 
Chicago, 111. 
Birmingham, Ala. 



Anderson, Ind. 
Duluth, Minn. 
Gulf Ports 
Pacific Coast Ports 



363 



WIRE BODS 



Pittsburgh, Pa. 
Cleveland, O. 
Chicago, 111. 
Birmingham, Ala. 
Youngstown. O. 
Worcester, Mass. 



Anderson, Ind. 
Gulf Port : 

Galveston, Tex. 
Pacific Coast Port: 

San Francisco, Cal. 



WIRE — SPRINGS 



Pittsburgh, Pa. 
Cleveland. O. 
Chicago, 111. 



Worcester, Mass. 
Pacific Coast Ports 



WIRE — TELEPHONE 



Pittsburgh, I'a. 
Cleveland, O. 
Waukegan, 111. 
Muncie, Ind. 



Trenton, N.J. 
Worcester, Mass. 
Sparrows Point, Md. 



SCHEDULE G 

Maximum Rates of Discount fob Early Payment and Maximum Periods of 
Free Credit 

maximum bates of discount fob early payment 

Section. 1. Except as in this Schedule G otherwise provided, in the case of 
products shipped by water from tlie plant of a member of the Code from or 
through any Atlantic Coast or Gulf port to any Pacific Coast port, or through 
a Pacific Coast port to a place of delivery in the State of California or the 
State of Oregon or the State of Washington, or to a place of delivery in the 
Canal Zone or to an Alaskan port, the maximum rates of discount for early 
payment shall be % of 1% of the invoiced value of such products, if the invoice 
of such products shall be paid within 30 days from the date of such invoice ; 
in all other cases, except as hereinafter provided, 1/2 of 1% of such invoiced 
value, if the invoice of such products shall be paid within 10 days from the 
date of such invoice ; provided, however, in the latter cases that any member 
of the Code may allow such discount of 1/2 of 1% for payment within 10 days 
on the basis of settlements twice in each month, as follows : 

(a) On invoices for products dated from the 1st to the 15th, inclusive, 

of any month, such discount may be allowed on payment of such invoices 

on or before the 25th of such month ; 

(&) On invoices for products dated from the 16th to the end of any 

month, such discount may be allowed on payment of such invoices on or 

before the 10th of the next following month. 
In the case of products shipped by water as specified in this Section 1 similar 
to products produced at Pacific Coast plants and sold for delivery at any place 
in the States of California, Oregon and Washington, the maximum rate of 
discount for easly payment shall be 1/2 of 1% of the invoiced value of such 
products, if the invoice thereof shall be paid within 40 days from the date 
of such invoice. 

Section 2. In the case of Pipe, Boiler Tubes and Mechanical Tubing (herein- 
after in this Schedule G referred to as Pipe) sold to purchasers other than 
jobbers, the maximum rate of discount for early payment shall be 2% of the 
invoiced value of such Pipe, if the invoice thereof shall be paid within 10 
days from the date of such Invoice; provided, hoiccvcr, that any member of 
the Code may allow such discount of 2% for payment within 10 days on the 
basis of settlement twice in each month as hereinbefore provided. In the 
case of Pipe sold to jobbers, the maximum rate of discount for early payment 
shall be 2% of the invoiced value of such Pipe, if the invoice thereof shall be 
paid on or befoie the 15th day of the month following the date thereof; pro- 
vided, however, that during such period as the consignment of stocks of Pii)e 
shall be continued under the Code, in the case of Pipe sold to jobbers who 
have Iteen accustomed to purchase such Pipe outright under arrangenuMits by 
which payment of any Invoice of such Pipe is made by a non-interest bearing 
trade accej»tance due in not more than 120 days from the date of tlie shiinnent 
of such Pipe, a discount of 2% of the invoiced value of such Pipe may be 
allowed on the payment of such trade acceptance. 

Section ."{. Kxcci)t as in this Section H otherwise provided, in the case of 
Merchant Wire products and Fence and Sign Posts, tlie maximum rate of 
discount for early payments shall be 2% of the invoiced value thereof, if 
the invoice of such products shall be paid within 10 days from the date of 
such invoi<-e; provided, however, that any member of the Code may allow such 
discount of 2% for payment within 10 days on the basis of settlements twice 
in each month as i)rovided in Secti(m 1 of this Schedule G ; and provided, 
further, that, in the case of such ijrodncts shipped by water as specified in 
Section 3 of this Schedule (}, any niemljcr of the Code may allow such discount 
of 2%, if the invoice of such products shall be paid within .'50 days from the 

VM-A) 



365 

date of such invoice, or, in the case of any such products so shipped similar 
to products produced at Pacific Coast plants and sold for delivery at any 
place in the States of California, Orejion and Washington, if the invoice thereof 
shall be paid within 40 days from the date of such invoice. In the case of 
Woven Wire Fencing in lots of 500 nxls or more and of Fence and Sign Posts 
in lots of 500 posts or more which shall be sold to purchasers for resale, the 
maximum rates of discount for early payment shall be as follows: 

SPRING TEKMS 

For shipments on and after December 1st and on or before the following 

April 1st: 

4% discount for cash on or before tlie following January 10th : 

3%% discount for cash on or before the following February 10th; 

3% discount for cash on or before the following March 10th : 

2%% discount for cash on or before the following April 10th; and 

2% discount for cash on or before the following May 10th. 

For shipments after April 1st and on or before May 31st : 

2% discount, if the invoice shall be paid within 10 days from the date of 

such invoice. 

AUTUMN TERMS 

For shipments on and after June 1st and on or before the following October 
1st: 

4% discount for cash on or before the following July 10th : 
Sy2% discount for cash on or before the following August 10th; 
3% discount for cash on or before the following September 10th ; 
2%% discount for cash on or before the followhig October 10th; and 
2% discount for cash on or before the follo\^'ing November 10th. 
For shipments after October 1st and on or before November 30th : 
2% discount, if the invoice shall be paid within 10 days from the date of 
such invoice. 

Section 4. Any discount allowed in accordance with the foregoing provi- 
sions of this Schedule G in respect of any product shall apply only to the in- 
voiced value of such product after excluding any and all amounts added on 
account of freight or other transportation charges to the base price for such 
product in determining the delivered price thereof. 

MAXIMUM PERIODS OF FREE CBEDIT 

Section 5. Except as hereinafter in this Schedule G otherwise provided, in 
the case of products shipped by water from the plant of any member of the 
Code from or through any Atlantic Coast or Gulf port to any Pacific Coast 
port, or through a Pacific Coast port to a place of delivery in the State of 
California or the State of Oregon or the State of Washington, or to a place 
of delivery in the Canal Zone or to an Alaskan port, the maximum period of 
free credit shall be 50 days from the date of the invoice of such products ; 
in all other cases, except as hereinafter provided, 30 days from the date of 
such invoice ; lyrovided, houerer, in the latter cases, that any member of the 
Code which shall make and invoice a series of shipments of products to any 
purchaser during any calendar month may allow payment without interest 
of the invoices of such products on or before the 20th of the next following 
month. In the case of products shipped by water as specified in this Section 5 
similar to products produced at Pacific Coast plants and sold for delivery at 
any place in the States of California, Oregon and Washington, the maximum 
period of free credit shall be 60 days from the date of the invoice of such 
products. 

Section 6. In the case of Pipe sold to jobbers, the maximum period of free 
credit shall be 60 days from the date of the invoice of such Pipe; provided, 
hoioevcr, that in the case of Pipe sold to a jobber who has been accustomed to 
purchase such Pipe outright under arrangements with any member of the Code 
by which a line of credit or ledger debit balance is allowed by such member to 
such jobber in specified amounts, without interest, if the invoiced value of the 
Pipe purchased in excess of the amount of the credit or ledger debit balance 
allowed in each case shall be paid on regular terms for such Pipe, then such 



366 

member of the Code may continue such arrangements during such period as 
the cousit^niiient of stocks of Pipe shall be continued under the Code. 

Section 7. Except as in this Section 7 otherwise provided, in the case of 
Merchant Wire products and Fence and Sign Posts, the maximum period of 
free credit shall be 60 days from the date of the invoice thereof. In the case 
of Woven Wire Fencing in lots of 500 rods or more and of Fence and Sign Posts 
in lots of 500 posts or more v/hich shall be sold to purchasers for resale, on 
shipments made on and after December 1st and on or before the following 
April 1st the maximum period of free credit shall end on the following May 
31st ; on sliipments made after April 1st and on or before the following May 31st 
the maximum period of free credit shall end 60 days after the date of the in- 
voice of such products ; on shipments made on and after June 1st and on or 
before the following October 1st the maximum period of free credit shall end 
on the following November 30th ; and on shipments made after October 1st and 
on or before the following November 30th the maximum period of free credit 
shall end 60 days after the date of the invoice of such products. 

Section 8. For all purposes of this Schedule G a member of the Code may 
treat the date of the mailing of any check or other order for the payment of 
money sent by mail in payment of any invoice of products sold by such member 
as the date of such payment. 

Section 9. Nothing in this Schedule G contained, however, shall be deemed 
to apply to any sale or contract for the sale of any product to the Government 
of the United States of America or to any agency thereof in any case in which 
such Government or agency shall pursuant to law impose terms of payment 
other than those prescribed in this Schedule G ; provided, however, that in any 
such case none of the members of the Code shall allow to such Government 
or any agency thereof terms of payment more favorable than those which shall 
be prescribed by such Government or agency pursuant to law. 



SCHEDULE H 

List of Unfair Practices 

F(ir all purposes of the Code the follou-ing described acts shall constitute' 
unfair practices : 

A. Making or promising to any purchaser or prospective purchaser of any 
product, or to any officer, employee, agent or representative of any such pur- 
chaser or prospective purchaser, any bribe, gratuity, gift or other payment or 
remuneration, directly or indirectly. 

B. Procuring, otherwise than with the consent of any member of the Code, 
any information concerning the business of such member which is properly 
regarded by it as a trade secret or confidential within its organization, other- 
than information relating to a violation of any provision of the Code. 

C. Imitating or simulating any design, style, mark or brand used by any 
other member of the Code. 

D. Using or substituting any material superior in quality to that specified 
by the purchaser of any product or using or substituting any material or any 
method of manufacture not in accord with any applicable law, rule or regula- 
tion of any governmental authority. 

E. Cancelling in whole or in part, or permitting the cancellation in whole or 
in part of, any contract of sale of any product, except for a fair consideration, 
or paying or allowing to any purchaser in connection with the sale of any 
product any rebate, commission, credit, discount, adjustment or similar con- 
cession other than as is permitted by the Code and specified in the contract 
of sale. 

F. Disseminating, publishing or circulating any false or misleading informa- 
lion relative to any product or price for any product of any member of the 
Code, or the credit standing or ability of any member thereof to perform any 
work or manufacture or produce any product, or to the conditions of employ- 
ment among the employees of any member thereof. 

G. Inducing or attempting to induce by any means any party to a contract 
with a member of the Code to violate such contract. 

H. Aiding or abetting any person, firm, association or corporation in any 
unfair practice. 

I. Making or giving to any purchaser of any product any guaranty or protec- 
tion in any form against decline in the market price of such product. 

J. Stating in the invoice of any product as the date thereof a date later 
than the date of the shipment of such product, or including in any invoice any 
product shiiiped on a date earlier than the date of such invoice. 

K. Making any sale or contract of sale of any product under any description 
which does not fully describe such product in terms customarily used in the 
Industry. 

L. Rendering to any purchaser of any product in or in connection with the 
sale of such product any service, unless fair compensation for such service 
shall be paid by such purchaser. 

M. Agreeing or promising, as a condition of. or in consideration for, receiv- 
ing an order for any product or the making of the purchase of any product 
or receiving other advantage, to file a new list of base prices in which a new 
base price for such product or new^ base prices for any other products shall 
be shown. 

N. Selling as scrap any product for any use other than for remelting pur- 
poses or Avhich may reasonably be considered as having a value other than for 
remelting purposes. 

O. Using coercion or coercive means to induce a member of the Code ta 
withdraw or change a base price for any product at any basing point. 

(367) 



368 

p. Any violation of any other provision of the Code, whether or not therein 
expressed to be such, or using or employing any practice not hereinabove in 
this Schedule H described which the Board of Directors by the atiirmative 
vote of three-fourths of the whole Board shall have declared to be a practice 
that would tend to defeat the policy of Title I of the National Industrial 
Recovery Act and, therefore, an unfair practice, and of which determination 
by such Board the Secretary shall have given notice to the members of the 
Code and to the President. 



Approved Code No. 254 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

ATHLETIC GOODS MANUFACTURING INDUSTRY 

As Approved on May 31, 1934 



ORDER 



Approving Amendment to Code of Fair Competition for the 
Athletic Goods Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to Section 4, Article I, Schedule B of the Code of Fair Compe- 
tition for the Athletic Goods Manufacturing Industry, by inserting 
the word " other " before the words " cause anv such product which 
has been used " in the last line of said Section, which word 
was omitted, through inadvertence, from the final draft of the Code, 
and tlie annexed report on said amendment 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 amendment and the Code as con- 
stituted after being amended comply in all respects with the pertinent 
provisions and Avill promote the policy and purposes of said Title of 
said Act, and do hereby order that said amendment be and it is 
hereby approved, and that the previous approval of said Code is 
hereby modified to include an approval of said Code in its entirety as 
amended. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
Geo. L. Berry, 

Division Adm inistrator. 

Washington, D.C, 

May 31, 193Jt. 

(369) 



KEPOET TO THE PRESIDENT 

The President, 

The 'White House. 

Sir: An application has been duly made pursuant to and in full 
compliance with the provisions of the National Industrial Recovery 
Act, for an amendment to the Code of Fair Competition for the 
Athletic Goods Manufacturing Industry. 

In writing up the final draft of the above Code the word " other " 
was inadvertently omitted from Section 4, Article I, Schedule B. 
Without this word the entire meaning and intent of this Section is 
nullified and as the Section is important to the Industry it is neces- 
sary to have this correction made. 

This action is taken at the request of the Code Authority for the 
Athletic Goods Manufacturing Industry and it is in my opinion in 
order for you to give your approval thereto. 



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

I find that: 

(a) The amendment to said Code and the Code as amended are 
well designed to promote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of obstruc- 
tions to the free flow of interstate and foreign commerce which tend 
to diminish the amount thereof, and will provide for the general 
welfare by promoting the organization of industry for the purpose 
of cooperative action among trade groups, by inducing and maintain- 
ing united action of labor and management under adequate govern- 
mental sanction and supervision, by eliminating unfair competitive 
practices, by promoting the fullest possible utilization of the present 
productive capacity of the indiisti-ies, by avoiding undue restrictions 
of production (except as may be temijorai-ily reciuired), by increasing 
the consumption of industrial and agricultural ])roducts tlirough in- 
creasing purchasing power, by ivdiicing and relieving unemployment, 
iDy improving standards of labor and by otherwise rehabilitating 
industry. 

(b) The Code as amended complies in all respects with the perti- 
nent provisions of said Title of said Act, including without limita- 
tion Subsection (a) of Section 3, Subsection (a) of Section T and 
Subsection (b) of Section 10 thereof. 

(c) 'J'hat the aforesaid amendment is necessary to correct an error 
in the Code as submitted to the President for his approval. 

(d) Th(! Amendment and the Code as amended are not designed 
to and will not j)ermit monopolies or monopolistic practices. 

(;i70) 



371 

(e) The Amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

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

Hugh S. Johnson, 

Administrator. 
Mat 31, 1934. 

Approved Code No. 254 — Amendment No. 1. 
Registry No. 1657-1-04. 



Approved Code No. 84 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FABRICATED METAL PRODUCTS MANUFACTUR- 
ING AND METAL FINISHING AND METAL 
COATING INDUSTRY 

As Approved on June 1, 1934 



ORDER 



Amendment of Code of Fair Competition for the Fabricated Metal 
Products Manufacturing and Metal Finishing and Metal Coat- 
ing Industry 

An application having been duly made pursuant to and in full com- 
pliance with the provisions of Title I of the National Industrial Re- 
covery Act, approved June 16, 1933, for approval of an amendment 
to a Code of Fair Competition for the Fabricated Metal Products 
Manufacturing and Metal Finishing and Metal Coating Industry, 
and the annexed report on said amendment, 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 6543-A, dated December 30, 1933, 
and otherwise, do hereby incorporate by reference, said annexed re- 
port and do find that said amendment and the Code as constituted 
after being amended comply in all respects with the pertinent provi- 
sions and will promote the policy and purposes of said Title of said 
Act. and do hereby order that said amendment be and it is hereby 
approved, and that the previous approval of said Code is hereby mod- 
ified to include an approval of said Code in its entirety as amended, 
such approval and such amendment to take effect fifteen (15) days 
from the date hereof, unless good cause to the contrary is shown to 
the Administrator before that time and the Administrator issues a 
subsequent order to that effect. 

Hugh S. Johnson, 
Administrator for Industrial Recovery. 

Approval recommended : 
A. R. Glanct, 

Division Administrator. 

Washington. D.C, 

Jmie 1, 1931^ 

(373) 



EEPOKT TO THE PRESIDENT 

The President, 

The White House, 

Sir: An application has been duly made pursuant to and in full 
compliance vv^itli the provisions of the National Industrial Recovery 
Act for an amendment of Article IV, Section 4 of the Code of Fair 
Competition for the Fabricated Metal Products Manufacturing and 
Metal Finishing- and Metal Coating Industry by the Code Authority 
of that Industry. 

This amendment is designed to accomplish the following purposes: 

1. To permit members of the Fabricated Metal Products Manufac- 
turing and Metal Finishing and Metal Coating Industry to operate 
under the Code for that Industry with the assistance of additional 
fair trade practice provisions, which may be necessary to promote 
fair competition in the se\eral Subdivisions of the Industry, with- 
out submission of Supplementary Codes. 

2. To eliminate the necessity for organization of a supplementary 
Code Autliority for many of the Subdivisions of the Industry and 
grant the Code Authority of the Fabricated Metal Products Manu- 
facturing and Metal Finishing and Metal Coating Industiy permis- 
sion to delegate to truly representative trade groups and subdivisions 
within the Industry power to administer within that group or sub- 
division any of the provisions of the Code for the Fabricated Metal 
Products Manufacturing and Metal Finishing and Metal Coating- 
Industry, including additional trade practice provisions which may 
be ajjproved by the Code Authority and the Administrator pursuant 
to the provisions of this amendment. 

3. To give those groups or subdivisions who may be now or here- 
after operating under approved Supplementary Codes opportunity 
to withdraw these Supplementary Codes and operate in accordance 
with the ])rovisions of this amendment. 

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

I find that : 

(a) The amendment to said Code and the Code as amended are 
well designed to prom.ote the policies and purposes of Title I of the 
National Industrial Recovery Act including the removal of ob- 
structions to the free flow of interstate and foreign commerce which 
tend to diminish the amount thereof, and will provide for the gen- 
eral welfare by promoting the organization of industry for the pur- 
pose of cooperative action among trade groups, by inducing and 
maintaining united action of labor and management under adequate 
governmental sanation and supervision, by eliminating unfair com- 
petitive practices, by promoting tlie fullest possible utilization of the 
present productive capacit}' of industries, by avoiding undue re- 

(374) 



375 

strictions of production (except as may be temporarily required), 
by increasing the consumption of industrial and agricultural prod- 
ucts through increasing purchasing power, by reducing and relieving 
unemployment, bj^ improving standards of labor, and by otherwise 
rehabilitating industry. 

(b) The Code as amended complies in all respects with the per- 
tinent provisions of said Title of said Act, including without limi- 
tation Subsection (a) of Section 3, Subsection (a) of Section 7 
and Subsection (b) of Section 10 thereof. 

(c) The Code Authority and the Fabricated Metal Products Fed- 
eration which was and is an industrial group truly representative 
of the aforesaid Industry and that said group imposed and imposes 
no inequitable restrictions on admission to membership therem 
and have applied for or consent to this amendment. 

(d) The amendment and the Code as amended are not designed 
to and will not permit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed 
to and will not eliminate or oppress small enterprises and will not 
operate to discriminate against them. 

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

For these reasons, therefore, I have approved this amendment 
to become effective fifteen (15) days from the date of the Order un- 
less good cause to the contrary is shown to me before that time and 
I issue a subsequent order to that effect. 
Respectfully, 

Hugh S. Johnson, 

Administrator. 
June 1, 1934. 



AMENDMENT TO CODE OF FAIR COMPETITION FOR 
THE FABRICATED METAL PRODUCTS MANUFACTUR- 
ING And metal finishing and metal coating 

INDUSTRY 

Amend Article IV, Section 4 to include the following additional 
paragraphs : 

Without limitation to the foregoing, any committees or trade 
groups which are truly representative of any subdivision of this 
industry may, with the approval of the Code Authority or the Ad- 
ministrator, set up a governing body with such powers as may be 
delegated by the Code Authority, to administer, within this group 
or subdivision, any of the provisions of this Code. 

In addition thereto, such trade groups or subdivisions not operat- 
ing under approved supplementary codes may, with the approval 
of the Code Authority and the Administrator, prepare and operate 
under any additional trade practice provisions which are not ade- 
quately covered by Article V of this Code, for such groups or 
subdivisions. 

Any trade groups or subdivisions of this industry which may be 
now or hereafter operating under approved supplementary codes 
may, with the approval of the Code Authority and the Administrator, 
withdraw such supplementary codes and operate in accordance with 
the provisions of the two preceding paragraphs. 

Approved Code No. 84 — Amendment No. 1. 
Registry No. 111&-06. 

(376) 



Approved Code No. 35 — Amendment No. 1 
AMENDMENT TO CODE OF FAIR COMPETITION 



TEXTILE MACHINERY MANUFACTURING 
INDUSTRY 

As Approved on June 1, 1934 



ORDER 



Amendment to Code of Fair Competition for the Textile Ma- 
chinery Manufacturing Industry 

An application having been duly made pursuant to and in full 
compliance with the provisions of Title I of the National Industrial 
Recovery Act, approved June 16, 1933, for approval of an amend- 
ment to a Code of Fair Competition for the Textile Machinery 
Manufacturing Industry, and as contained in a Published Notice 
of Opportunity to File Objections, Administrative Order No. 35-6, 
dated May 3, i934, and no ob